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Speaker 1: The information provided in this program is of a general

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Speaker 1: nature and is not intended to be personalized financial advice.

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Speaker 1: We encourage you to seek appropriate advice from a qualified

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Speaker 1: professional to suit your individual circumstances. Micro Strategy executive chairman

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Speaker 1: and self described bitcoin maximalist Michael Saylor explains what it

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Speaker 1: may take for more companies and governments to follow his

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Speaker 1: Bitcoin adoption playbook.

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Speaker 2: If you want to see the people with all the

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Speaker 2: money and the power in the world embrace the asset,

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Speaker 2: they will do it when their vendors support the asset.

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Speaker 2: And that's a rippling thing, right because until you have

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Speaker 2: the fair accounting, people can't see how intelligent the idea is.

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Speaker 2: I want to talk about the Bitcoin revolution.

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Speaker 1: Sailor is bitcoin's biggest advocate, but he wasn't always this way.

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Speaker 1: In twenty thirteen, he tweeted that Bitcoin's days were numbered.

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Speaker 3: Now he's out there encouraging.

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Speaker 1: Other companies to spend their cash on Bitcoin, holding a

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Speaker 1: Bitcoin for corporations event to share his strategy.

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Speaker 2: So bitcoin there is no second back.

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Speaker 3: And many are adopting it.

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Speaker 1: This year, bitcoin's total market surpassed one trillion US dollars,

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Speaker 1: as institutions drove an inflection point to coming.

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Speaker 2: Out party for bitcoin.

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Speaker 1: I think black Rock, Vanneck and other firms launched bitcoin

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Speaker 1: exchange traded funds in January this year, giving investors and

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Speaker 1: means to get exposure to bitcoin's price through the stock market.

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Speaker 2: You do not sell your bitcoin.

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Speaker 1: So what does Sailor think is Bitcoin's next big moment?

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Speaker 1: You are the biggest bitcoin bill I think in the

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Speaker 1: world easily right now.

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Speaker 3: But you are a bull among a lot of bears

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Speaker 3: out there. Still.

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Speaker 1: It even took you, what seven to eight years to

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Speaker 1: sort of convince yourself that bitcoin was something that you know,

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Speaker 1: you should convint your own balance cheet too, and obviously

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Speaker 1: now you're doing it. But how do you convince others,

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Speaker 1: the big tech players out there, the giants NISA, Google, Microsoft?

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Speaker 3: How do you get them to flip? Like like Larry.

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Speaker 2: I think, you have to make it easy and you

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Speaker 2: have to give people gateway products that they can use.

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Speaker 2: You have to give them bitcoin with guardrails. You have

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Speaker 2: to give them domestic bitcoin, not wild bitcoin.

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Speaker 1: What is that? Well, it's domestic bitcoin versus wild bitcoin.

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Speaker 1: Is that like ibit versus on market and cold stores?

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Speaker 1: You know?

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Speaker 2: Raw bitcoin? Is you buy bitcoin? You know, and your

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Speaker 2: self custody it, you know. And the next is you

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Speaker 2: buy bitcoin with a custodian, but more domesticated. A simple

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Speaker 2: domesticated bitcoin is ibit and FBTC. I buy it through

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Speaker 2: black Rock, right, and that's a lot easier to handle.

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Speaker 2: There's again we're back to nine hundred trillion dollars of capital.

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Speaker 2: Real estate investors they want to buy something that looks

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Speaker 2: like real estate, right, and bond investors want to buy

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Speaker 2: something that looks like a bond. And preferred stock wants

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Speaker 2: to buy something that looks like ford stock. And some

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Speaker 2: people want half the upside as a capital gain, but

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Speaker 2: they don't want the downside, so they got to buy

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Speaker 2: they got to buy something like a convert And options

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Speaker 2: traders they want to trade options. So when bitcoin bitcoin

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Speaker 2: first came out, there were none of these things. And

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Speaker 2: then for a while there was an entire crypto economy

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Speaker 2: that was created offshore, you know, too much colorful drama

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Speaker 2: and anxiety like the ftxs of the world, et cetera. Well,

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Speaker 2: those are unregulated crypto exchanges and conventional, traditional regulated investors

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Speaker 2: can't trade in that. And it's probably good they didn't, right,

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Speaker 2: because most of them failed. So what we're watching right

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Speaker 2: now since twenty twenty is the creation of the institutional

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Speaker 2: vehicles in order to invest in bitcoin. And you know,

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Speaker 2: I've got this saying. I say, everybody's against bitcoin before

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Speaker 2: they're for it, right, We're all against it until we're

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Speaker 2: for it. I was, you know, why are you against it?

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Speaker 2: It's like, well, why are you against electricity? In eighteen

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Speaker 2: eighty you know that. I'm sure the first guy with fire,

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Speaker 2: he scared a bunch of other tribesmen, and they're like,

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Speaker 2: you know what happens we get too coast to fire,

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Speaker 2: It burns you burned. No one wants to get burned. Right.

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Speaker 2: The idiom is no one wants to get burned. And

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Speaker 2: yet without fire, we're not better than the apes. And

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Speaker 2: then what happens when we play with electricity? We get shocked?

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Speaker 2: Who wants to get shocked? It's another idiom in the

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Speaker 2: English language, shock is bad, and yet without electricity, like

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Speaker 2: ninety percent ofmanity is dead.

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Speaker 1: I love that the siren just went off in the background,

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Speaker 1: is it not?

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Speaker 3: As you were talking about the shell?

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Speaker 2: It happens, and so new technologies are scary, right. People

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Speaker 2: thought that if you got an automobile, more than ten

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Speaker 2: miles an hour, it would suck the oxygen out of

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Speaker 2: the cabin and you would suffocate.

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Speaker 3: Can be good to the horse, right, Yeah?

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Speaker 2: So so if you look at the great revolutions and energy, right,

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Speaker 2: fire was extracting energy from matter. You know, water was

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Speaker 2: extracting energy from gravity. Right, that's the big idea. There's gravity,

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Speaker 2: there's energy in this field. If I put water there

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Speaker 2: in a water clock and it comes down here, I

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Speaker 2: can turn a wheel with it, right, big idea. And

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Speaker 2: then when extracting energy from the atmosphere, and then the

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Speaker 2: steam engine is let's let's refine the entire idea and

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Speaker 2: move the you know, create an engine that takes that

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Speaker 2: energy and spends something so that kids don't don't have

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Speaker 2: to do it. Right, you know, the steam engine eliminates slavery.

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Speaker 2: It's a pretty good idea, right. And then after that,

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Speaker 2: you know gasoline and internal combustion engines, and then you

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Speaker 2: know what follows NAC's nuclear reactors and electricity and each

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Speaker 2: of these energy revolutions. It was a shocking, scary paradigm shift,

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Speaker 2: and for thirty years people rejected it, and they had

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Speaker 2: good reason because they're city burned down and their house

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Speaker 2: burned down and they got electrocuted, and my airplane fell

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Speaker 2: out of the sky. Right, it's like the and if

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Speaker 2: you study James Watt, he spent his entire life trying

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Speaker 2: to make steam engine work. Not easy, right, it's not easy.

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Speaker 2: Bitcoin's digital energy. So Toshi figured out a way to

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Speaker 2: both transfer and store, to basically store and channel energy

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Speaker 2: through cyberspace without an intermediary. That's a profound breakthrough because

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Speaker 2: that means I can put a billion dollars in cyberspace,

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Speaker 2: I can move it sixty times a second, i can

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Speaker 2: hold it for a million years, and I'm not facing

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Speaker 2: counterparty risks to a bank, a country, a currency, a corporation, right,

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Speaker 2: a culture, you know, a commodity manufacturer. And so that's

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Speaker 2: a profound idea. We're fifteen years into the innovation. We're

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Speaker 2: only four years into the you know, to the crazy years.

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Speaker 2: And really January twenty twenty four was really the beginning

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Speaker 2: of this error. Maybe this is year zero of institutional adoption.

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Speaker 2: When when we have regulatory acceptance, bank acceptance, and accounting

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Speaker 2: acceptance a bitcoin, those three planks, that's year one of adoption.

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Speaker 2: And when do you have that, Well, you kind of

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Speaker 2: got seventy five percent regulatory acceptance. Since we got these ETFs,

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Speaker 2: not all most, when we have ibit trading on the

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Speaker 2: options market, that's a big step forward. And when you

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Speaker 2: can do incin create and redemptions of the ETFs, you've

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Speaker 2: got full regulatory acceptance of the asset. Then January twenty

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Speaker 2: twenty five, fair value accounting becomes the norm, and now

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Speaker 2: you've got accounting acceptance, and now you can mark up

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Speaker 2: and mark down the asset just like applestock or just

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Speaker 2: like other assets. And then when you have two big

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Speaker 2: defail banks, when you have the B and Y Melons

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Speaker 2: of the world, or the JP Morgan's of the world,

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Speaker 2: the State streets of the world, they custody the bitcoin,

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Speaker 2: or they buy and they sell and they hold a bitcoin,

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Speaker 2: you'll love banking acceptance. And what are banks? Banks are

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Speaker 2: just institutions that are engineered to be custodians of financial assets.

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Speaker 2: So of course the greatest custodians of assets in the

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Speaker 2: world need to custody this asset. So we are we're

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Speaker 2: right in the middle of that. And I think maybe

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Speaker 2: twenty twenty five you can call year one of the

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Speaker 2: institutional error of digital capital, that thing which is bitcoin.

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Speaker 1: I want to come to the banks because I'm very

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Speaker 1: keen to talk to you about how you see banks

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Speaker 1: as being key to unlocking that next phase. But just

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Speaker 1: on this corporatization and even perhaps government adoption, what do

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Speaker 1: you think is the fear other than just volatility? I mean,

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Speaker 1: is it fear of completely disrupting economic theory and monetary

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Speaker 1: policy as we know? It? Is that the fear that

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Speaker 1: these corporates and that governments hold.

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Speaker 2: So I think the issue is not really with the

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Speaker 2: asset class. I think any conservative or any traditional investor,

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Speaker 2: if you're a high net worth individual, a family office,

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Speaker 2: if you're a successful corporation, if you're an agency, a government,

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Speaker 2: or any political entity, and I introduced new technology, you know,

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Speaker 2: like I say, I come to I come to the government.

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Speaker 2: I say, I got this electricity thing, and you don't

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Speaker 2: have any electricity in your building. Well, what they would

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Speaker 2: do is go to their contractor. They've got some contractor

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Speaker 2: that built the building, and they would say, can you

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Speaker 2: backfit or rewire our building for electricity? And the contractor

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Speaker 2: said that no, man, you know, because my competitors did

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Speaker 2: it and they got shut down and bankrupted, and my

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Speaker 2: other you know, another person did it in the building

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Speaker 2: burned down, So we're not going to do it for

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Speaker 2: a while. We're afraid, right, in that case, they would

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Speaker 2: they wouldn't just embrace electricity immediately. The equivalent of the

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Speaker 2: building contractor for bitcoin would be the bank. So when

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Speaker 2: your rich uncle, you know, gets asked about bitcoin, he's like, well,

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Speaker 2: I called my broker, I called my bank JP Morgan,

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Speaker 2: or I called the Standard Charter or wherever, and they

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Speaker 2: won't buy it for me yet they say it's too risky. Well,

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Speaker 2: I'm just going to hold off a bit. So if

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Speaker 2: you want, if you want to see the people with

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Speaker 2: all the money and the power in the world embrace

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Speaker 2: the asset, they will do it when their vendors support

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Speaker 2: the asset. And that's a rippling thing, right because until

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Speaker 2: you have the fair accounting, people can't see how intelligent

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Speaker 2: the idea is. The difference between fair accounting and indefinite

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Speaker 2: and tangible accounting for a big company is under fair accounting,

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Speaker 2: you would know within five seconds whether you had a

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Speaker 2: good quarter, oh we made like ten dollars a share.

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Speaker 2: Under indefinite account and definite and tangible accounting you would

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Speaker 2: have to read two hundred and fifty pages of documents

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Speaker 2: and create your own proprietary models and spend somewhere between

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Speaker 2: one and ten hours to figure out how you feel

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Speaker 2: about the quarter.

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Speaker 1: And so the NINA wouldn't be that succinct. It wouldn't

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Speaker 1: they there to give you like a thig of it.

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Speaker 2: You know, the seventy year old billionaire isn't going to

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Speaker 2: take ten hours. They can't even read the document, right,

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Speaker 2: and so we you know, you could get all intellectual

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Speaker 2: about this and say, oh, they've thought about it and

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Speaker 2: they don't like this and this and this. That's not

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Speaker 2: the case. It's if I call my broker and say

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Speaker 2: buy ten million dollars of this and they say you sure, boss,

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Speaker 2: click and it's done. Then you start to see adoption.

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Speaker 2: And when the company that adopted it announces that they

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Speaker 2: just made twice as much in their earnings for the

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Speaker 2: quarter as they used to because of it, it's like, well,

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Speaker 2: then buy more of that stock. And when the mayor

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Speaker 2: of Miami, or the mayor of New York City or

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Speaker 2: the governor of Texas says to his treasurer, I think

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Speaker 2: we ought to have some bitcoin, the treasure says, okay,

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Speaker 2: no problem, I'll let City Group or Bank of America

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Speaker 2: or Morgan Stanley know, and they'll do it, click and

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Speaker 2: it's done. Then you're adopting. But when the governor says

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Speaker 2: the treasure buy ten billion, and the Treasurer says there's

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Speaker 2: not a single bank in the US that will sell

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Speaker 2: that to us, it's like, well, I guess we're too early.

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Speaker 2: And it's the same thing with you putting an elevator

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Speaker 2: into your house, or electricity, or how about running water?

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Speaker 2: You know, why didn't people put running water in their house?

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Speaker 2: You know in eighteen eighty it's because it was like

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Speaker 2: you had to be rich, and it was expensive, and

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Speaker 2: one in one hundred people had it. And the guy

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Speaker 2: that's building your house didn't know how to do it.

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Speaker 2: He'd never done it before, you know. And so these

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Speaker 2: things get embraced as everybody in the society gets comfortable

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Speaker 2: with the new technology, and generally it's like a thirty

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Speaker 2: year generational shift. You know, in year one, no one's

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Speaker 2: doing it. You see those pictures of New York City

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Speaker 2: in nineteen oh five, no cars. Nineteen fifteen, everybody's got

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Speaker 2: a car. You know, it's like, well, what did it take?

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Speaker 2: You know, it took this exponential set of processes and

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Speaker 2: support for this to happen, and the same as going

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Speaker 2: on with bitcoin right now.

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Speaker 3: I mentioned yield and Michael.

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Speaker 1: Every single time I do an episode on bitcoin, there's

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Speaker 1: always somebody in the audience who sees, Yeah, but if

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Speaker 1: I buy it, then I earn no yield on it.

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Speaker 1: It's not a stock. I don't get paid dividends quarterly.

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Speaker 1: It's not a second property that I can rent out.

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Speaker 1: It's not money in the bank that I can earn

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Speaker 1: a savings yield on.

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Speaker 3: So when or if?

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Speaker 1: But I think from what you're saying there, when banks,

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Speaker 1: whether at JP Morgan City start adopting it and allowing

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Speaker 1: us to put our bitcoin in the bank, I've heard

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Speaker 1: you speak about this, what happens there and how a

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Speaker 1: bank's key to unlocking that next face.

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Speaker 2: Yeah, let's say I give you ten acres in Manhattan.

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Speaker 2: There's a land. You buy the land. You can buy

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Speaker 2: the land in seventeen hundred, eighteen hundred, nineteen hundred, the

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Speaker 2: year two thousand. Is it worth something? You know? Would

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Speaker 2: you sell it to me for a penny if you

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Speaker 2: own it? No, it's worth something, right, But there's no yield.

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Speaker 2: It's rawland. There's no yield. We'll give it to me

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Speaker 2: for a penny. There's no well no, it's like Central Park,

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Speaker 2: but there's no yel right, okay, so what's what's the

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Speaker 2: solution to the problem. Well, you take the land and

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Speaker 2: you put a and you have a company, a real

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Speaker 2: estate developer, and the company builds a building on the

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Speaker 2: land or parking lot, right and and then they rent

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Speaker 2: it out and they generate the yield. And okay, so

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Speaker 2: do I like that or not? Well, this counterparty risk

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Speaker 2: I got. I'm buying a security. I'm buying a reate.

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Speaker 2: There's a company. The company might build a building, the

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Speaker 2: falls down, they might get a deadbeat, you know. So

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Speaker 2: the point is there's risk. So you want a reliable

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Speaker 2: company that you trust too big to fail to take

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Speaker 2: that risk and give you the yield. A bank, Well no,

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Speaker 2: micro strategy is doing it right now, right, Like we

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Speaker 2: just discussed BTC yield. So micro strategy takes the bitcoin

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Speaker 2: and then we do something. We actually find a way

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Speaker 2: to to uh to take out a loan, reinvest it

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Speaker 2: and generate a BTC yield. And the price you pay

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Speaker 2: is you take a risk with a security called mst R. Right,

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Speaker 2: So banks do it a different way. I mean, bank

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Speaker 2: will take your asset. You have a billion dollars of

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Speaker 2: something billion dollars of apple stock, and they may loan

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Speaker 2: it out to someone else, and they may get paid

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Speaker 2: a fee by the one person that wants to borrow it,

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Speaker 2: and they might pass it on to you, and they

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Speaker 2: might not, right, so sometimes they do. They'll definitely do

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Speaker 2: it with your treasuries or with your cash. Sometimes they don't,

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Speaker 2: depends on how you are. I think that banking is

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Speaker 2: just the next logical step. But in terms of how

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Speaker 2: am I going to get a yield on bitcoin, I'm

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Speaker 2: going to get a yield when a thousand companies and

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Speaker 2: the Russell two thousand buy bitcoin, operate their existing business,

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Speaker 2: sweep their cash lows into bitcoin, and do stuff whether

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Speaker 2: they develop business on top of it. Right, that's a

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Speaker 2: way to get a and I'll get a yield if

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Speaker 2: two big to fail banks that are well capitalized they

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Speaker 2: start to accept bitcoin as collateral, and probably you don't

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Speaker 2: get a huge yeld. By the way, if you think

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Speaker 2: about the metaphor, it's like when you own apple stock,

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Speaker 2: it's you know, oftentimes you don't get a yield by

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Speaker 2: loaning your Apple stock, but big corporations do. The big

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Speaker 2: investors actually get paid a small interest rate when they

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Speaker 2: own loan their stock to people that want to short

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Speaker 2: sell the stock, and so there is a market there

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Speaker 2: for that. But more likely the next stage is a

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Speaker 2: big bank accepts your bitcoin collateral alongside your Apple and

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Speaker 2: your Microsoft stock and your Treasury bills is collateral, and

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Speaker 2: they give you some advance ratio against it, and then

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Speaker 2: you can borrow at sofur plus some spread against it

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Speaker 2: because it's you know, no worse collateral than Apple stock,

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Speaker 2: as a block is, so you'll start to see the

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Speaker 2: formation of credit markets around bitcoin.

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Speaker 1: Well, let's consider that within bitcoin's characteristics. And you've already

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Speaker 1: spoken about Satoshi, let's go back to the beginning. The

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Speaker 1: Bitcoin network was started by Satoshi Nakamoto on January third,

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Speaker 1: two thousand and nine. That Genesis block included this message,

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Speaker 1: a headline from the Times quote Chancellor on brink of

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Speaker 1: second bailout for banks. It was followed by this public

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Speaker 1: forum post in February oh nine, announcing a new peer

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Speaker 1: to peer e cash system called Bitcoin. To this day,

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Speaker 1: no one knows who Satoshi is, but the network he,

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Speaker 1: her or they built has been operating for fifteen years

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Speaker 1: and two hundred and eighty nine days when we release

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Speaker 1: this video with almost one hundred percent reliability. The network

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Speaker 1: has gone down twice in its history, in twenty ten

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Speaker 1: due to a bug and twenty thirteen due to a fork,

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Speaker 1: and the chain both were fixed within hours. So tooci's

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Speaker 1: creation wasn't the first attempt at a currency native to

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Speaker 1: the Internet, but it's clearly the most successful due to

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Speaker 1: its design that has no central point of failure. From

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Speaker 1: the beginning, sotoshi didn't allocate any initial supply to themselves.

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Speaker 1: For the first year and a half, bitcoin wasn't worth

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Speaker 1: anything except the cost of running a computer to mine it.

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Speaker 1: To create bitcoin, miners are required to solve mathematical problems

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Speaker 1: to add a block to the chain. That proof of

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Speaker 1: work is then verified by all nodes on the network.

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Speaker 1: The work required to mind bitcoin can change due to

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Speaker 1: what's called the difficulty adjustment and the reward earned by miners.

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Speaker 1: Hearts every four years, meaning bitcoin has a predictable decreasing

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Speaker 1: inflation rate as it becomes more scarce over time. Bitcoin's

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Speaker 1: total supply is cat only twenty one million bitcoin can

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Speaker 1: ever be mined, Unlike fiat currency that can be printed

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Speaker 1: by authorities. At the time I was making this video,

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Speaker 1: bitcoin supply was at ninety four point eleven percent. That's

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Speaker 1: more than nineteen million bitcoin in existence. The currency is

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Speaker 1: fully decentralized, meaning there's no authority or state that oversees it,

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Speaker 1: unlike the US dollar, which is controlled by the Federal

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Speaker 1: Reserve and is a system based entirely on trust. But

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Speaker 1: if sailor wants banks to hold bitcoin, does that put

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Speaker 1: it at risk of becoming more centralized exactly what its

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Speaker 1: support is?

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Speaker 3: Wouldn't want it to be.

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Speaker 1: If there is more bitcoin bitcoins hold with these third

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Speaker 1: party custodiums, what risk does that pose? Having greater supply

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Speaker 1: held by fewer large institutions. Does that increase the risk

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Speaker 1: of seizure and confiscation like we've seen with gold? And

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Speaker 1: is that not exactly what the coin is don't want

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Speaker 1: to happen now.

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Speaker 2: I think it's the opposite. I think that when the

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Speaker 2: bitcoin is held by a bunch of crypto anarchists who

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Speaker 2: aren't regulated entities, who don't acknowledge government, or don't acknowledge taxes,

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Speaker 2: or don't acknowledge reporting requirements, that increases the risk of seizure.

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Speaker 2: If you know, if a country in desperation, if China

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Speaker 2: knew that there were underground crypto traders with billions of

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Speaker 2: dollars of bitcoin in their midst that didn't pay taxes,

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Speaker 2: the Chinese would probably try to shut that down, and

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Speaker 2: that's what they do. So normally, the risk is greater

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Speaker 2: when they are unregulated private entities that are perceived to

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Speaker 2: be holding the asset. When you have regulated public entities

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Speaker 2: like black Rock and Fidelity and JP Morgan and State

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Speaker 2: Street Bank holding the asset, well, all the lawmakers and

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Speaker 2: all the law enforcement arms, they're invested in those entities, right,

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Speaker 2: So there's no way that all the senators and all

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Speaker 2: the congressmen are going to seize the assets from Fidelity

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Speaker 2: in black Rock or Vanguard because that's where all their

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Speaker 2: retirement money is invested. So the asset moving from private

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Speaker 2: to public hands and moving into regulated entities, it does

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Speaker 2: a bunch of things. It decreases the volatility, it decreases

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Speaker 2: the risk of loss, It decreases their like who do

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Speaker 2: you trust more as a custodian FTX or Fidelity right

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Speaker 2: or Vanguard or State Street right? And if you walk

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Speaker 2: down the street and you said, you know, would you

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Speaker 2: put all your family's money in offshore entity without a

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Speaker 2: headquarters run by five dudes without an auditor, or would

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Speaker 2: you put it with a bank that's too big to

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Speaker 2: fail in the US? Right, Like, at the end of

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Speaker 2: the day, you have an og crypto community is very

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Speaker 2: hardcore about it. But if you look at where all

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Speaker 2: the money is, ninety nine point nine percent of the

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Speaker 2: money is actually in the traditional economy and in the

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Speaker 2: war for the future of money. The war's going to

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Speaker 2: be won with money, right, I mean, right at the

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Speaker 2: end of the day, bitcoin is capital. Who's going to

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Speaker 2: actually decide who's the winner or the loser the people

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Speaker 2: with the capitol, And so where's the capital. It's a Vanguard, Fidelity,

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Speaker 2: State Street, JP, Morgan, Morgan, Stanley. They're all regulated entities

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Speaker 2: of sorts. So when bitcoin is held by those entities,

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Speaker 2: it becomes regular and normal. And you know, people would

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Speaker 2: no more think about seizing that than they think about

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Speaker 2: seizing a building in the middle of Manhattan or seizing

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Speaker 2: you know, the you know, the S and P spider assets.

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Speaker 2: It's why why would you do that? That's just the

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Speaker 2: capital that you built the country on.

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Speaker 1: Well, if you ask why would you do that if

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Speaker 1: you consider the Great Depression. I mean, people thought that

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Speaker 1: the gold was safe and banks until the Executive Order

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Speaker 1: of nineteen thirty three.

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Speaker 3: So we're not entirely safe.

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Speaker 1: I mean to know, that's kind of a wild thing

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Speaker 1: to suggesce may happen again, but history does repeat itself.

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Speaker 3: So yeah, was bitcoin wouldn't be entirely safe.

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Speaker 2: People say that, but mostly it's mostly it's paranoid crypto

406
00:24:24,920 --> 00:24:30,239
Speaker 2: anarchists that say that. Okay, because it's a myth and

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00:24:30,280 --> 00:24:33,280
Speaker 2: a trope that goes on over and over again. But

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Speaker 2: first of all, he didn't really seize the gold. People

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Speaker 2: voluntarily turned in the goal. They didn't go and kick

410
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Speaker 2: in everybody's door, arrest them, shoot them, and take their goal.

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Speaker 2: That never happened. First of all, hey, that's for it.

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Speaker 2: Second of all, he didn't seize all the property. He

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Speaker 2: didn't go seize all the buildings owned by wealthy people

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Speaker 2: in New York. He didn't seize all the stock portfolios

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Speaker 2: of wealthy people in New York. Right, gold was the

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Speaker 2: monetary asset backing the dollar. The dollar was literally twenty dollars,

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Speaker 2: you know, to the ounce of gold. Right, and so

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Speaker 2: the problem was the country was on the gold standard,

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Speaker 2: and Franklin Dollan Roosevelt wanted to devalue the dollar. He

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Speaker 2: wanted to de devalue the currency. He wanted to print

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Speaker 2: more dollars, and so they had to actually do something

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Speaker 2: so they could devalue the dollar. And the way they

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Speaker 2: did it was put that executive order in place, and

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Speaker 2: then they revalued the dollar to thirty four dollars per ounce,

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Speaker 2: a devaluation. And and now you have to ask yourself,

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Speaker 2: the question, is the United States on the bitcoin standard?

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Speaker 2: Now we will be, but the point, but the point

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Speaker 2: really is we're not right. It's totally not a reasonable comparison.

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Speaker 2: Franklin Dollan and Roosevelt didn't seize every car and every watch,

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Speaker 2: and you know, and every piece of real estate and

431
00:26:00,840 --> 00:26:03,639
Speaker 2: every piece of equity in the United States because we

432
00:26:03,640 --> 00:26:06,560
Speaker 2: weren't on the equity standard or the property standard, or

433
00:26:06,640 --> 00:26:09,359
Speaker 2: the or the chicken in every pot standard, or the

434
00:26:09,440 --> 00:26:13,400
Speaker 2: grassy lawn standard or the lawn mout standard. We were

435
00:26:13,400 --> 00:26:16,399
Speaker 2: on the goal standard, and he wanted to devalue on

436
00:26:16,440 --> 00:26:20,199
Speaker 2: the goal standard. And so today we're not on the

437
00:26:20,200 --> 00:26:24,040
Speaker 2: goal standard, we're not on the Bitcoin standard. The US

438
00:26:24,160 --> 00:26:27,000
Speaker 2: government has no problem printing money. They can print as

439
00:26:27,080 --> 00:26:30,600
Speaker 2: much as they want. And in fact, every government on Earth,

440
00:26:31,520 --> 00:26:34,679
Speaker 2: all of them, they're either on their own standard or

441
00:26:34,720 --> 00:26:39,040
Speaker 2: they're on the dollar standard. So in this particular case,

442
00:26:40,880 --> 00:26:44,359
Speaker 2: I don't think we have to worry about, you know,

443
00:26:44,840 --> 00:26:48,640
Speaker 2: bitcoin held in custody being seized by the government anymore

444
00:26:48,640 --> 00:26:51,040
Speaker 2: than you have to worry about your apple stock being

445
00:26:51,119 --> 00:26:53,960
Speaker 2: seized by the government, because the government doesn't need to

446
00:26:54,000 --> 00:26:57,960
Speaker 2: devalue the dollar against apple stock to print more dollars either.

447
00:26:58,600 --> 00:27:03,879
Speaker 2: So it's not really an issue. It's oftentimes it's you know,

448
00:27:03,960 --> 00:27:09,840
Speaker 2: people have these inflammatory you know, tropes or inflammatory memes

449
00:27:09,880 --> 00:27:12,639
Speaker 2: that they use and it's like I say that because

450
00:27:12,640 --> 00:27:15,280
Speaker 2: I want you to give me your money, Okay, Like

451
00:27:15,640 --> 00:27:21,359
Speaker 2: I want if you don't trust the bank, then you'll

452
00:27:21,359 --> 00:27:25,600
Speaker 2: buy my hardware wallet. If you don't trust this government,

453
00:27:25,680 --> 00:27:28,320
Speaker 2: you'll move to my country and you'll buy a passport

454
00:27:28,440 --> 00:27:32,000
Speaker 2: from me. So if you don't trust that company, you'll

455
00:27:32,040 --> 00:27:34,960
Speaker 2: sell that stock and buy the other stock. So there's

456
00:27:35,000 --> 00:27:37,720
Speaker 2: a lot of a lot of this kind of of

457
00:27:38,040 --> 00:27:43,359
Speaker 2: messaging and ideas that they're very inflammatory and they're meant

458
00:27:43,600 --> 00:27:49,479
Speaker 2: to actually stampede people into some behavior whatever, which is

459
00:27:49,600 --> 00:27:54,640
Speaker 2: financially beneficial, Like, like, you can't make your own investment decisions.

460
00:27:54,680 --> 00:27:57,280
Speaker 2: Investing is very hard. You should give me your money.

461
00:27:57,280 --> 00:28:00,000
Speaker 2: I'll make the decisions for you. I'm going to charge

462
00:28:00,119 --> 00:28:03,240
Speaker 2: you two percent fee and twenty percent of the upside.

463
00:28:03,520 --> 00:28:05,600
Speaker 2: It's like, well, what should I do about hyperfection? Well,

464
00:28:05,640 --> 00:28:08,600
Speaker 2: you need to invest in a diversified portfolio of global

465
00:28:08,640 --> 00:28:11,919
Speaker 2: alternative assets across one hundred and fifty two different asset

466
00:28:11,920 --> 00:28:15,520
Speaker 2: classes and revalue every quarter. Oh I can't do that. Okay,

467
00:28:15,520 --> 00:28:18,119
Speaker 2: that's okay, give me your money, girly, I'll do it

468
00:28:18,160 --> 00:28:21,520
Speaker 2: for you. Right. That's the kind of fear mongering to

469
00:28:21,600 --> 00:28:25,359
Speaker 2: get you to give me your money, right, And I

470
00:28:25,480 --> 00:28:28,159
Speaker 2: use it to sell you a gun, to sell you

471
00:28:28,720 --> 00:28:31,440
Speaker 2: a hardware walllet, to sell you an account, to sell

472
00:28:31,480 --> 00:28:34,800
Speaker 2: you a financial advisor, to sell you an insurance policy,

473
00:28:35,320 --> 00:28:38,600
Speaker 2: to sell you a you know, fill in the blank, right,

474
00:28:38,720 --> 00:28:43,640
Speaker 2: whatever it might be. And ultimately, I think that there's

475
00:28:43,680 --> 00:28:47,200
Speaker 2: just a lot of fear that's unnecessary. The bigger idea

476
00:28:47,520 --> 00:28:51,840
Speaker 2: is Bitcoin is digital capital. It's a million times smarter,

477
00:28:52,200 --> 00:28:56,680
Speaker 2: a million times faster, a million times stronger, a million

478
00:28:56,720 --> 00:29:04,000
Speaker 2: times more elegant than analyog capital, physical capital. And financial capital,

479
00:29:04,440 --> 00:29:10,239
Speaker 2: and it's simply a technology transformation. It's like, don't store it.

480
00:29:10,440 --> 00:29:13,479
Speaker 2: Don't take ten thousand records and haul them around with

481
00:29:13,520 --> 00:29:16,880
Speaker 2: you in ten thousand books whenever you travel, take the

482
00:29:16,960 --> 00:29:19,959
Speaker 2: iPad with ten thousand books on it, and take the

483
00:29:20,000 --> 00:29:23,880
Speaker 2: iPhone with ten million songs on it when you travel. Right,

484
00:29:23,960 --> 00:29:26,720
Speaker 2: it's like, blah blah blah. But the phone will eat

485
00:29:26,760 --> 00:29:29,080
Speaker 2: me and it's listening to me, and it will steal

486
00:29:29,360 --> 00:29:32,680
Speaker 2: my identity and kill me. It's like, it's just a

487
00:29:32,760 --> 00:29:35,360
Speaker 2: computer with some digital files on it, right, And so

488
00:29:36,000 --> 00:29:40,560
Speaker 2: that's the digital transformation of capital, and that's what bitcoin represents.

489
00:29:40,720 --> 00:29:43,680
Speaker 1: So on digital money being tell me if this is

490
00:29:43,960 --> 00:29:48,000
Speaker 1: a legitimate fear or not. Quantum computing it apparently is

491
00:29:48,000 --> 00:29:51,080
Speaker 1: going to have the ability to solve multiple more complex

492
00:29:51,160 --> 00:29:55,160
Speaker 1: mathematical mathematical equations all at once. Does that pose a

493
00:29:55,200 --> 00:29:57,960
Speaker 1: legitimate risk to the bitcoin network or are you confident

494
00:29:58,000 --> 00:30:01,160
Speaker 1: that developers will come up with some kind of quantum resistance.

495
00:30:01,400 --> 00:30:04,560
Speaker 2: No, it's it's just another fear mongering, end of the

496
00:30:04,600 --> 00:30:08,080
Speaker 2: world scam narrative that people use to sell stuff, and

497
00:30:08,080 --> 00:30:10,880
Speaker 2: in this case quantum computing, the fear is used to

498
00:30:10,960 --> 00:30:14,320
Speaker 2: sell the next alt coin. I have a quantum resistant

499
00:30:14,360 --> 00:30:17,760
Speaker 2: token and quantum computing. Who's going to destroy your token?

500
00:30:17,880 --> 00:30:20,440
Speaker 2: So give me your billion dollars and give it to

501
00:30:20,560 --> 00:30:24,760
Speaker 2: me and make me rich because maybe an asteroid will

502
00:30:24,800 --> 00:30:27,640
Speaker 2: hit the earth. I have an asteroid bunker. Give me

503
00:30:27,680 --> 00:30:30,680
Speaker 2: your billion dollars and I will give you my asteroid bunker.

504
00:30:31,040 --> 00:30:33,720
Speaker 2: You're going to die of pneumonia. Give me your money,

505
00:30:33,800 --> 00:30:36,160
Speaker 2: and I'm going to give you a vaccine. Right, You're

506
00:30:36,200 --> 00:30:41,680
Speaker 2: gonna you know, it's just fear mongering. Quantum computing is

507
00:30:41,720 --> 00:30:44,120
Speaker 2: a if you take the general theme, it's like, oh,

508
00:30:44,240 --> 00:30:47,360
Speaker 2: computers are going to get better over time, and as

509
00:30:47,400 --> 00:30:49,920
Speaker 2: they get better, maybe they'll get really good and they'll

510
00:30:49,960 --> 00:30:52,600
Speaker 2: be able to hack systems. And what's your response, Well,

511
00:30:52,960 --> 00:30:55,040
Speaker 2: I guess I just shouldn't use it. I shouldn't invest

512
00:30:55,080 --> 00:30:57,280
Speaker 2: in Apple or Google or Facebook, or I shouldn't have

513
00:30:57,280 --> 00:30:59,360
Speaker 2: money in a bank, and I shouldn't use a computer

514
00:30:59,440 --> 00:31:03,400
Speaker 2: because uters might get hacked. Huh I guess I okay,

515
00:31:03,400 --> 00:31:05,600
Speaker 2: So give up everything in your life that has the

516
00:31:05,640 --> 00:31:10,320
Speaker 2: computer in it, right, including the podcast that you're running

517
00:31:10,360 --> 00:31:12,920
Speaker 2: right now. Give it all up because one day quantic

518
00:31:12,920 --> 00:31:17,240
Speaker 2: computers run by doctor Evil will hack the thing. Okay, well,

519
00:31:17,280 --> 00:31:19,400
Speaker 2: I mean the answer is it's silly. Of course, computers

520
00:31:19,440 --> 00:31:21,840
Speaker 2: will get better, and as the computers get better, we

521
00:31:21,880 --> 00:31:25,320
Speaker 2: will adopt the better computers to defend the network. The

522
00:31:25,320 --> 00:31:30,040
Speaker 2: Bitcoin network used to generate hashes one thousand jewels per

523
00:31:30,120 --> 00:31:32,360
Speaker 2: Terra hash. It took a thousand jewels to generate a

524
00:31:32,440 --> 00:31:35,040
Speaker 2: Tarra hash, and then it was five hundred, and then

525
00:31:35,040 --> 00:31:37,200
Speaker 2: it was one hundred, and then it was fifty, and

526
00:31:37,280 --> 00:31:39,880
Speaker 2: it was thirty, and it's fifteen, and the next will

527
00:31:39,920 --> 00:31:42,880
Speaker 2: be five, and there'll be one. And doesn't take a

528
00:31:42,960 --> 00:31:46,880
Speaker 2: rocket scientist to figure out that computers get better, semiconductors

529
00:31:46,880 --> 00:31:50,320
Speaker 2: get better, the network gets more secure. It's like, but, but,

530
00:31:50,520 --> 00:31:53,280
Speaker 2: but but what if someone invents something that's better than

531
00:31:53,280 --> 00:31:56,040
Speaker 2: the better thing? Well, well, we spend ten billion a

532
00:31:56,120 --> 00:31:58,200
Speaker 2: year to keep upgrading our thing. And you think that

533
00:31:58,320 --> 00:32:02,200
Speaker 2: doctor evil like me in the basement with no money

534
00:32:02,360 --> 00:32:04,360
Speaker 2: is going to come up with the quantum computer that's

535
00:32:04,400 --> 00:32:07,200
Speaker 2: going to be better than the ten billion dollars we

536
00:32:07,280 --> 00:32:10,440
Speaker 2: spend for the last every year for the last decades.

537
00:32:10,520 --> 00:32:14,240
Speaker 2: So yeah, if a teenage kid with fifty bucks in

538
00:32:14,280 --> 00:32:16,520
Speaker 2: a rubber band comes up with something better than one

539
00:32:16,600 --> 00:32:20,400
Speaker 2: hundred billion, dollars of semiconductor or investment. Then in theory,

540
00:32:20,400 --> 00:32:23,760
Speaker 2: they could hack our network. But why wouldn't you just

541
00:32:23,880 --> 00:32:27,000
Speaker 2: hack x and the Colere nuclear war on someone and

542
00:32:27,080 --> 00:32:29,840
Speaker 2: like short the market and make ten billion dollars by

543
00:32:29,920 --> 00:32:35,160
Speaker 2: hacking the president's account. But I mean, the point is

544
00:32:35,440 --> 00:32:38,959
Speaker 2: it's all illegal. But my point is it's a billion

545
00:32:39,040 --> 00:32:42,480
Speaker 2: times easier to just hack the bank or hack the

546
00:32:42,520 --> 00:32:45,960
Speaker 2: communication network and make money than it is to hack bitcoin.

547
00:32:46,400 --> 00:32:51,960
Speaker 2: Bitcoin is the most cyber resistant, the most powerful digital

548
00:32:52,000 --> 00:32:56,040
Speaker 2: network on earth. It's the hardest thing to hack. So

549
00:32:56,120 --> 00:33:00,800
Speaker 2: when someone pitches quantum computing, it's normally it to degenerate

550
00:33:00,840 --> 00:33:03,960
Speaker 2: twenty something crypto trader that wants you to buy his

551
00:33:04,160 --> 00:33:07,480
Speaker 2: yo yo quantum coin and make him rich because he's

552
00:33:07,480 --> 00:33:10,760
Speaker 2: got a yo yo quantum algorithm. And I just shake

553
00:33:10,840 --> 00:33:13,200
Speaker 2: my head because I think, who could be so stupid

554
00:33:13,520 --> 00:33:18,960
Speaker 2: to fall for this kind of alarmism. It's ridiculous and

555
00:33:19,040 --> 00:33:22,200
Speaker 2: a waste of time. But having said it all, the

556
00:33:22,200 --> 00:33:27,560
Speaker 2: generic statesmanlike answer is technology will advance. Bitcoin is the

557
00:33:27,600 --> 00:33:31,840
Speaker 2: best most profitable use of computer power. In order to

558
00:33:31,880 --> 00:33:35,520
Speaker 2: protect money. If technology advances, you got to believe that

559
00:33:35,560 --> 00:33:39,040
Speaker 2: the people most incentivized to use the technology will be

560
00:33:39,120 --> 00:33:41,240
Speaker 2: the one with the trillions of dollars of money to

561
00:33:41,280 --> 00:33:45,160
Speaker 2: protect it will go there first. All those advances will

562
00:33:45,160 --> 00:33:48,680
Speaker 2: be first implemented into the bitcoin network to defend the network.

563
00:33:48,720 --> 00:33:53,280
Speaker 2: They won't be used by teenage boys to attack the network.

564
00:33:53,560 --> 00:33:57,280
Speaker 2: By teenage boys would rather hack Twitter. It'd be cool.

565
00:33:57,720 --> 00:34:00,760
Speaker 2: We're just going to go. But it's been done. It's

566
00:34:00,760 --> 00:34:03,520
Speaker 2: been done again. It's very simple to do. It's a

567
00:34:03,560 --> 00:34:07,040
Speaker 2: billion times easier to do to hack these communication networks.

568
00:34:07,440 --> 00:34:09,640
Speaker 2: And so that's where your threat will come.

569
00:34:11,280 --> 00:34:14,400
Speaker 1: To sum this all up, and I would love you

570
00:34:14,480 --> 00:34:17,720
Speaker 1: to give again a non statesman like answer to bisman Michael,

571
00:34:17,760 --> 00:34:22,240
Speaker 1: but can you give us your bitcoin superiority complex about

572
00:34:22,280 --> 00:34:24,920
Speaker 1: the asset and can you weaven some of what you

573
00:34:24,920 --> 00:34:27,920
Speaker 1: spoke about earlier about government's printing money And if you

574
00:34:28,000 --> 00:34:30,840
Speaker 1: consider the economic cycle that we've been through over the

575
00:34:30,840 --> 00:34:33,920
Speaker 1: past four years, while you've been accumulating bitcoin like crazy,

576
00:34:34,239 --> 00:34:38,960
Speaker 1: how is that and your mind increased its superiority, So.

577
00:34:39,440 --> 00:34:43,600
Speaker 2: You know, a short summary, why is bitcoin better? First

578
00:34:43,600 --> 00:34:49,080
Speaker 2: of all, if I had one hundred rich families and

579
00:34:49,120 --> 00:34:52,080
Speaker 2: they lived all over the world, and they didn't trust

580
00:34:52,080 --> 00:34:54,040
Speaker 2: a government, and they didn't trust a bank, and they

581
00:34:54,040 --> 00:34:56,640
Speaker 2: didn't trust a corporation, and they had a lot of money,

582
00:34:56,680 --> 00:34:58,840
Speaker 2: and they wanted to keep their money for one thousand years.

583
00:35:00,120 --> 00:35:02,919
Speaker 2: If God came down from heaven above and said, hey,

584
00:35:03,120 --> 00:35:06,320
Speaker 2: I'll run the God Bank, issue twenty one million god coin,

585
00:35:06,560 --> 00:35:08,440
Speaker 2: and I will make sure that no one can steal

586
00:35:08,520 --> 00:35:11,279
Speaker 2: your god coins. You can buy in however you want,

587
00:35:11,360 --> 00:35:13,919
Speaker 2: and you can trade telepathically with each other, and I'll

588
00:35:13,920 --> 00:35:18,400
Speaker 2: do this for free, they'd probably accept that. Right. The

589
00:35:18,440 --> 00:35:20,880
Speaker 2: history of the human race is people looking to heaven

590
00:35:21,040 --> 00:35:25,200
Speaker 2: to solve their problems in every religion. Okay, in the

591
00:35:25,320 --> 00:35:29,600
Speaker 2: absence of god coin and God coming down to do this,

592
00:35:30,120 --> 00:35:34,000
Speaker 2: the next best thing would be an intelligent engineer that

593
00:35:34,120 --> 00:35:38,920
Speaker 2: creates a crypto network to combine semiconductor technology, public private

594
00:35:38,960 --> 00:35:46,080
Speaker 2: key encryption and the Internet TCPIP. Okay, that's a crypto coin.

595
00:35:47,160 --> 00:35:50,280
Speaker 2: So now we create a crypto coin, and the question

596
00:35:50,440 --> 00:35:55,240
Speaker 2: is who's going to run the software because nobody trusts anybody.

597
00:35:55,239 --> 00:35:57,000
Speaker 2: And maybe I trust you and you trust me, but

598
00:35:57,040 --> 00:36:00,680
Speaker 2: I don't trust your idiot great grandson had them yet.

599
00:36:00,880 --> 00:36:04,640
Speaker 2: I mean, how could we trust your great great grandchild. Okay,

600
00:36:04,920 --> 00:36:07,839
Speaker 2: so we're all going to run the software and We're

601
00:36:07,880 --> 00:36:10,160
Speaker 2: going to run it on thousands and hundreds of thousands

602
00:36:10,200 --> 00:36:12,759
Speaker 2: of nodes, and anybody whose software cheats gets kicked off

603
00:36:12,760 --> 00:36:17,120
Speaker 2: the network. Okay, that's the idea of bitcoin. It's basically

604
00:36:17,160 --> 00:36:21,880
Speaker 2: a crypto asset network. Now the question is, okay, I

605
00:36:21,880 --> 00:36:25,280
Speaker 2: figured that out. Now what kind of monetary policy I want?

606
00:36:25,520 --> 00:36:28,839
Speaker 2: I want twenty one million hard cap forever, never can

607
00:36:28,880 --> 00:36:31,520
Speaker 2: make anymore. I want a scarcity. I don't want anybody

608
00:36:31,560 --> 00:36:36,000
Speaker 2: can make nobody can make anymore. Okay, that's good. Now

609
00:36:36,040 --> 00:36:40,080
Speaker 2: the question is, okay I did that, Now, which network

610
00:36:40,160 --> 00:36:45,040
Speaker 2: is going to win? So we launched Bitcoin as as

611
00:36:45,200 --> 00:36:47,960
Speaker 2: the fortieth try and the first one with the right

612
00:36:48,040 --> 00:36:52,600
Speaker 2: monetary policy, the right cryptography, and an equitable launch. So

613
00:36:52,600 --> 00:36:57,200
Speaker 2: so she launches it, walks away forever, disclaims beneficial ownership.

614
00:36:57,239 --> 00:37:02,440
Speaker 2: It's an immaculate conception. Okay, what if somebody else launched

615
00:37:02,480 --> 00:37:06,520
Speaker 2: another crypto network with an immaculate conception. You know, there's

616
00:37:06,600 --> 00:37:10,680
Speaker 2: been five million cryptos launched. Most of them are not

617
00:37:10,760 --> 00:37:14,320
Speaker 2: immaculately conceived. Some of them still have the founding teams

618
00:37:14,360 --> 00:37:16,600
Speaker 2: that are getting rich off of them. When there's a

619
00:37:16,600 --> 00:37:19,680
Speaker 2: founding team getting rich off of them with a jet

620
00:37:19,760 --> 00:37:22,920
Speaker 2: and with an office with a mansion, it doesn't look immaculate.

621
00:37:23,280 --> 00:37:26,440
Speaker 2: There's no Satoshi in a swimming pool, flying as jet

622
00:37:26,440 --> 00:37:28,040
Speaker 2: around as a billionaire.

623
00:37:28,160 --> 00:37:29,799
Speaker 1: Right, that's the one is we don't know, We don't

624
00:37:29,840 --> 00:37:31,440
Speaker 1: know why.

625
00:37:31,640 --> 00:37:34,000
Speaker 2: And the point is we absolutely know there isn't because

626
00:37:34,000 --> 00:37:36,920
Speaker 2: the coins have not moved in fifteen years and we

627
00:37:37,000 --> 00:37:40,880
Speaker 2: can see them. So now the question is you've got

628
00:37:40,880 --> 00:37:43,400
Speaker 2: all these smart families and they're staring at the crypto

629
00:37:43,600 --> 00:37:46,160
Speaker 2: gold network if you will, or goal's not even a

630
00:37:46,160 --> 00:37:48,680
Speaker 2: good example, just a crypto bank, and the question is

631
00:37:48,719 --> 00:37:52,480
Speaker 2: which network is the best one. Well, we sort through

632
00:37:52,520 --> 00:37:54,799
Speaker 2: it and we try bitcoin and it kind of works

633
00:37:54,840 --> 00:37:56,640
Speaker 2: for a while, and then we trust it. More money

634
00:37:56,680 --> 00:37:59,600
Speaker 2: gets onto it, you know, and for a while we're

635
00:37:59,640 --> 00:38:03,799
Speaker 2: not sure, and then twenty twenty, some crazy entrepreneur buys

636
00:38:03,840 --> 00:38:06,880
Speaker 2: two hundred fifty million dollars of it for a public

637
00:38:06,920 --> 00:38:11,080
Speaker 2: company and that's the first time in you know, ten years,

638
00:38:11,120 --> 00:38:13,800
Speaker 2: anybody ever bought a quarter billion dollars on the network,

639
00:38:13,800 --> 00:38:16,399
Speaker 2: and people are like, oh my god. Yeah, and then

640
00:38:16,680 --> 00:38:21,160
Speaker 2: that same person buys another nine point seven billion dollars

641
00:38:21,160 --> 00:38:21,759
Speaker 2: of it, and so we.

642
00:38:21,760 --> 00:38:23,560
Speaker 3: Buy it me crazy, my gosh.

643
00:38:23,640 --> 00:38:27,200
Speaker 2: Okay, So in that time where there's one company, micro Strategy,

644
00:38:27,239 --> 00:38:31,279
Speaker 2: buying ten billion dollars of that asset. It's not a

645
00:38:31,360 --> 00:38:34,399
Speaker 2: single person ever publicly spent two hundred and fifty million

646
00:38:34,440 --> 00:38:38,240
Speaker 2: on any other crypto asset ever. Of the five million,

647
00:38:39,000 --> 00:38:41,440
Speaker 2: nobody even put in the first two hundred and fifty million.

648
00:38:41,520 --> 00:38:44,400
Speaker 2: Nobody put in one hundred million. Right, go find it,

649
00:38:44,440 --> 00:38:48,480
Speaker 2: you won't find it. So now you have an interesting issue,

650
00:38:48,480 --> 00:38:51,080
Speaker 2: which is why is bitcoin the winner? It's because all

651
00:38:51,120 --> 00:38:53,800
Speaker 2: the smart money in the world decided that's the winner.

652
00:38:54,320 --> 00:38:56,200
Speaker 2: Did it have to be? Well, now it's like, why

653
00:38:56,239 --> 00:38:58,920
Speaker 2: do we speak English? Because all the rich, powerful people

654
00:38:59,000 --> 00:39:01,920
Speaker 2: decided on English. Could it have been a different language.

655
00:39:02,239 --> 00:39:04,760
Speaker 2: It could have been French. Napoleon wanted it to be French,

656
00:39:05,480 --> 00:39:08,320
Speaker 2: but it wasn't French. It was English. Why do we

657
00:39:08,400 --> 00:39:11,200
Speaker 2: use base ten math because all of the rich, powerful

658
00:39:11,200 --> 00:39:14,319
Speaker 2: engineering companies use it? Is it the only form of math? No,

659
00:39:14,600 --> 00:39:18,760
Speaker 2: there's base two, base eight, base sixteen, right with mement

660
00:39:19,040 --> 00:39:21,120
Speaker 2: Why yeah, you know we have the big joke about

661
00:39:21,120 --> 00:39:23,759
Speaker 2: the metric system. Right, we're still trying to work through

662
00:39:23,800 --> 00:39:27,720
Speaker 2: that protocol. So bitcoin is the protocol that the rich,

663
00:39:28,040 --> 00:39:32,640
Speaker 2: powerful smart people chose. Okay, so you can fork it

664
00:39:32,719 --> 00:39:35,160
Speaker 2: and create your own, and you will have to find

665
00:39:35,640 --> 00:39:40,160
Speaker 2: stupid poor people to buy yours. But why would I

666
00:39:40,239 --> 00:39:42,400
Speaker 2: actually want to put all my money in the network

667
00:39:42,480 --> 00:39:45,920
Speaker 2: with the stupid poor people when I've already got the

668
00:39:45,960 --> 00:39:50,520
Speaker 2: network with the smart rich people. Right. And the result

669
00:39:50,600 --> 00:39:53,920
Speaker 2: of that is Bitcoin is the most powerful crypto network

670
00:39:53,960 --> 00:39:56,239
Speaker 2: in the world. And you can measure it by a

671
00:39:56,239 --> 00:40:01,280
Speaker 2: computer power seven hundred x a hash. That's forty billion

672
00:40:01,320 --> 00:40:04,960
Speaker 2: dollars of special purpose semiconductors that generate more hashes than

673
00:40:05,080 --> 00:40:08,439
Speaker 2: all the computer power of Microsoft, all the computer power

674
00:40:08,440 --> 00:40:11,600
Speaker 2: of Amazon, all the computer power of Meta. If they

675
00:40:11,640 --> 00:40:13,719
Speaker 2: all ganged up on it, they still can't get to

676
00:40:13,760 --> 00:40:18,040
Speaker 2: seven hundred x hash. It's the most powerful computer network.

677
00:40:18,640 --> 00:40:23,680
Speaker 2: Then it has eighteen gigawatts eighteen gigawats of electric power.

678
00:40:23,800 --> 00:40:28,719
Speaker 2: That's the most powerful electrically powerful network. Eighteen gigawats is

679
00:40:28,719 --> 00:40:31,080
Speaker 2: more power than the US Navy users to run all

680
00:40:31,080 --> 00:40:34,080
Speaker 2: the aircraft carriers and the destroyers and the battleships. Wow,

681
00:40:34,280 --> 00:40:38,640
Speaker 2: we conquered the world with less than eighteen gigawatts of power.

682
00:40:39,200 --> 00:40:43,480
Speaker 2: It's eighteen full on nuclear reactors running full on right

683
00:40:43,840 --> 00:40:46,600
Speaker 2: spread everywhere in the world. Okay, how does that compare

684
00:40:46,600 --> 00:40:49,440
Speaker 2: it to the second pest. The second pest has zero

685
00:40:49,440 --> 00:40:53,880
Speaker 2: point one percent that much power one yeah, you know,

686
00:40:53,960 --> 00:40:58,280
Speaker 2: how about the hash rate one percent maybe? And then

687
00:40:58,440 --> 00:41:03,440
Speaker 2: eight hundred billion dollars of actual capital. Micro Strategy spent

688
00:41:03,560 --> 00:41:07,200
Speaker 2: ten billion to get one point two percent. Work it

689
00:41:07,239 --> 00:41:09,920
Speaker 2: out in your head. Look at the four year simple

690
00:41:09,960 --> 00:41:13,080
Speaker 2: moving average of bitcoin multiplied by the number of bitcoin.

691
00:41:13,440 --> 00:41:16,480
Speaker 2: Look at the trading volume. Look at real people, thousands

692
00:41:16,520 --> 00:41:21,320
Speaker 2: of institutional investors with real money at risk, the bitcoin minors,

693
00:41:21,360 --> 00:41:26,560
Speaker 2: the black Rocks, et cetera. Right, like seventy billion, sixty

694
00:41:26,600 --> 00:41:30,759
Speaker 2: billion dollars put into just the ETFs alone real money. Right,

695
00:41:31,640 --> 00:41:34,480
Speaker 2: eight hundred billion in capital has backed the network. So

696
00:41:34,520 --> 00:41:37,040
Speaker 2: what's the second best. The second best doesn't even have

697
00:41:37,080 --> 00:41:41,359
Speaker 2: eight like ninety nine percent of the real money went

698
00:41:41,400 --> 00:41:45,680
Speaker 2: into the bitcoin. Now, everything else you read about in crypto, right,

699
00:41:45,760 --> 00:41:48,880
Speaker 2: all the other crypto assets that might be a store

700
00:41:48,880 --> 00:41:51,399
Speaker 2: of value. I'm not counting the stable coins because they're

701
00:41:51,480 --> 00:41:55,960
Speaker 2: just dollar pegged, but everything else probably doesn't even have

702
00:41:56,080 --> 00:41:58,799
Speaker 2: eight billion. It might have a few billion dollars, right,

703
00:41:58,840 --> 00:42:01,960
Speaker 2: So it's like ninety nine to ninety nine point nine

704
00:42:02,000 --> 00:42:06,000
Speaker 2: percent dominant. And then you go to the political power. Well,

705
00:42:06,000 --> 00:42:09,520
Speaker 2: there's four hundred and twenty million crypto people that love crypto,

706
00:42:09,640 --> 00:42:13,239
Speaker 2: But what's the reserve asset of crypto bitcoin? Four and

707
00:42:13,239 --> 00:42:17,399
Speaker 2: twenty million voters and then two hundred million people that

708
00:42:17,520 --> 00:42:22,960
Speaker 2: hold an instrument back by bitcoin. So what's the source

709
00:42:23,000 --> 00:42:28,280
Speaker 2: of the network? Political power, electrical power, digital computer power,

710
00:42:29,080 --> 00:42:33,000
Speaker 2: economic power? Right, that's you know, that's the source of

711
00:42:33,080 --> 00:42:36,120
Speaker 2: power of the network. It's like, well, why should I

712
00:42:36,160 --> 00:42:40,680
Speaker 2: buy that? Well, once you understand that it's the dominant

713
00:42:40,680 --> 00:42:43,480
Speaker 2: crypto network, now the issue is, well why should I

714
00:42:43,480 --> 00:42:46,719
Speaker 2: buy bitcoin instead of gold? Well, the goal supply is

715
00:42:46,760 --> 00:42:50,360
Speaker 2: going to double every thirty years, and you can't teleport

716
00:42:50,400 --> 00:42:52,880
Speaker 2: goal sixty times a second, and the AI is not

717
00:42:52,920 --> 00:42:55,279
Speaker 2: going to want the goal, right, and you can't put

718
00:42:55,320 --> 00:42:59,160
Speaker 2: gold on your iPhone? Right, Goals not digital. If you

719
00:42:59,200 --> 00:43:01,919
Speaker 2: have one hundred million dollars and you put it into

720
00:43:01,920 --> 00:43:03,759
Speaker 2: gold and you wait one hundred years, you'll have twelve

721
00:43:03,800 --> 00:43:06,399
Speaker 2: million dollars worth of goal. That's why I don't want goal.

722
00:43:06,440 --> 00:43:08,080
Speaker 2: Mayf you have one hundred million dollars a bitcoin and

723
00:43:08,080 --> 00:43:09,480
Speaker 2: you hold it one hundred years, you'll still have one

724
00:43:09,560 --> 00:43:12,319
Speaker 2: hundred million dollars worth of bitcoin. Right, So gold is

725
00:43:12,840 --> 00:43:15,200
Speaker 2: gold is the best of the commodities, but it's awful

726
00:43:15,239 --> 00:43:17,880
Speaker 2: because it's got a two percent inflation rate. What's the

727
00:43:17,920 --> 00:43:20,919
Speaker 2: difference between two percent inflation rate and zero percent inflation rate.

728
00:43:21,920 --> 00:43:26,040
Speaker 2: It's the difference between living thirty years and living forever.

729
00:43:27,320 --> 00:43:30,360
Speaker 2: Like one is mortal. Okay, here's your choice. Take the

730
00:43:30,360 --> 00:43:34,080
Speaker 2: orange pill, you live forever. Take the gold pill, you live.

731
00:43:34,880 --> 00:43:37,319
Speaker 2: You're half dead. In thirty years, you're half dead. You're

732
00:43:37,320 --> 00:43:39,520
Speaker 2: gonna live seventy five eighty and you're dead. Right. This

733
00:43:39,560 --> 00:43:42,960
Speaker 2: is a mortal life. This is immortal life. That's differently

734
00:43:42,960 --> 00:43:45,960
Speaker 2: in zero and two percent. Gold is the greatest of

735
00:43:45,960 --> 00:43:49,120
Speaker 2: the commodities. Every other commodity inflates a ten percent a year,

736
00:43:49,719 --> 00:43:53,560
Speaker 2: twenty percent a year, fifty percent a year. They're awful.

737
00:43:53,880 --> 00:43:56,759
Speaker 2: Commodities are awful stores of value. Well, what are they

738
00:43:56,760 --> 00:44:02,400
Speaker 2: good at. Here's what they're good at. Commodities are ethically sound. Okay.

739
00:44:02,600 --> 00:44:05,759
Speaker 2: That means they're an asset without an issuer. You can

740
00:44:05,800 --> 00:44:08,239
Speaker 2: promote gold or a chicken in every pot, or a

741
00:44:08,320 --> 00:44:11,520
Speaker 2: land or silver, or you can promote soybeans. You can

742
00:44:11,560 --> 00:44:14,200
Speaker 2: tell people to keep kerosene behind their house. Those are

743
00:44:14,200 --> 00:44:18,640
Speaker 2: commodities you cannot promote a security. A security is an

744
00:44:18,640 --> 00:44:22,680
Speaker 2: asset with an issuer. If a senator says, god bless apple,

745
00:44:23,400 --> 00:44:28,160
Speaker 2: she's promoting a security. If a senator says, god bless bitcoin,

746
00:44:28,800 --> 00:44:33,799
Speaker 2: they're promoting a commodity. It's like promoting bluegrass music, is

747
00:44:33,880 --> 00:44:40,800
Speaker 2: like promoting fasting. It's simply a cultural or a technical idea.

748
00:44:41,440 --> 00:44:44,719
Speaker 2: So what do you want as your long term store value?

749
00:44:45,040 --> 00:44:50,520
Speaker 2: You want something economically sound. That means absolutely zero inflation

750
00:44:50,680 --> 00:44:54,359
Speaker 2: rate forever and nobody can screw with that. You want

751
00:44:54,440 --> 00:44:58,719
Speaker 2: something ethically sound now, that means an asset without an

752
00:44:58,760 --> 00:45:04,440
Speaker 2: issuer or where the inv enter Prometheus disappeared. You own fire,

753
00:45:04,960 --> 00:45:08,080
Speaker 2: you know electricity. You can use it. The English language

754
00:45:08,080 --> 00:45:10,120
Speaker 2: you can use it. Math you can use it. Bitcoin

755
00:45:10,160 --> 00:45:13,279
Speaker 2: you can use it. There's no company with the copyright,

756
00:45:13,440 --> 00:45:16,279
Speaker 2: the charges you are royalty. Right. It needs to be

757
00:45:16,840 --> 00:45:21,760
Speaker 2: ethically sound, needs to be a commodity, right, and finally

758
00:45:22,400 --> 00:45:27,279
Speaker 2: it needs to be technically sound, you know, good engineering,

759
00:45:27,800 --> 00:45:32,319
Speaker 2: and so yeah, a building is sort of it's sort

760
00:45:32,320 --> 00:45:35,359
Speaker 2: of economically sound, not as good as bitcoin, because you've

761
00:45:35,360 --> 00:45:40,319
Speaker 2: got property taxes and an entropy you know, and happen

762
00:45:41,000 --> 00:45:45,880
Speaker 2: and a share of magnificent seven. It's kind of economically sound,

763
00:45:45,880 --> 00:45:49,080
Speaker 2: but it's a security And if the Chinese decided to

764
00:45:49,120 --> 00:45:52,360
Speaker 2: seize Apple's assets or the US sees as a Chinese

765
00:45:52,400 --> 00:45:55,680
Speaker 2: company's assets, you know you've got all sorts of political risk.

766
00:45:56,480 --> 00:46:03,720
Speaker 2: But bitcoin is both the econ economically sound asset anestheethically

767
00:46:03,760 --> 00:46:07,520
Speaker 2: sound asset. But it's a big tech digital network. It

768
00:46:07,560 --> 00:46:09,880
Speaker 2: means that I can move one hundred billion dollars a

769
00:46:09,920 --> 00:46:14,799
Speaker 2: million times a second. Okay, So the big idea is

770
00:46:16,440 --> 00:46:20,040
Speaker 2: I can give a capital asset to eight billion people

771
00:46:20,160 --> 00:46:25,760
Speaker 2: on their mobile phone, and ten million computers can trade

772
00:46:25,840 --> 00:46:32,200
Speaker 2: it a million times an hour across every jurisdiction. Right.

773
00:46:32,239 --> 00:46:36,160
Speaker 2: And so if you want to give music to eight

774
00:46:36,200 --> 00:46:39,120
Speaker 2: billion people, you need digital music. You can't do it

775
00:46:39,120 --> 00:46:41,439
Speaker 2: with records and eight tract tapes. And if you want

776
00:46:41,480 --> 00:46:45,360
Speaker 2: to give digital communications, right, you want to give education

777
00:46:45,440 --> 00:46:47,640
Speaker 2: to eight billion people, you need digital education. You need

778
00:46:47,680 --> 00:46:50,759
Speaker 2: to give them lectures for free for the cost of electrons.

779
00:46:51,239 --> 00:46:53,480
Speaker 2: And if you want to give wealth to eight billion people,

780
00:46:54,200 --> 00:46:56,680
Speaker 2: you need digital capital. You need to put your wealth

781
00:46:56,760 --> 00:46:59,759
Speaker 2: on your iPhone and you need to know that it

782
00:46:59,800 --> 00:47:04,000
Speaker 2: will last forever. And I just ask anybody, I ask you,

783
00:47:04,600 --> 00:47:07,479
Speaker 2: what do you own in your life that you think

784
00:47:07,520 --> 00:47:11,600
Speaker 2: your family will still have intact that will be valuable

785
00:47:11,719 --> 00:47:16,160
Speaker 2: three hundred years from now. What would that be, right,

786
00:47:16,239 --> 00:47:20,360
Speaker 2: Because there's no conventional thing. There's no company that's going

787
00:47:20,400 --> 00:47:23,080
Speaker 2: to last three hundred years. Right. They might not live

788
00:47:23,200 --> 00:47:25,560
Speaker 2: in New Zealand three hundre years from now. I could

789
00:47:25,560 --> 00:47:29,879
Speaker 2: give you ten thousand acres in Auckland. And the issue is,

790
00:47:30,200 --> 00:47:32,320
Speaker 2: so can you take it with you when the government

791
00:47:32,440 --> 00:47:35,240
Speaker 2: changes and they decide to seize the assets of people

792
00:47:35,280 --> 00:47:40,000
Speaker 2: with blue eyes? Right? Because happens if you look at

793
00:47:40,000 --> 00:47:43,680
Speaker 2: the history of the twentieth century and you're like, what

794
00:47:43,760 --> 00:47:50,040
Speaker 2: country didn't seize the assets of somebody over one hundred years? Right,

795
00:47:50,120 --> 00:47:54,080
Speaker 2: It's like you had one country, the United States, that

796
00:47:54,160 --> 00:47:58,640
Speaker 2: won every war, and yet that country's currency lost ninety

797
00:47:58,760 --> 00:48:02,920
Speaker 2: nine point nine percent of its value against scarce assets.

798
00:48:03,000 --> 00:48:07,080
Speaker 2: That's the winner. The winner gives you one tenth of

799
00:48:07,120 --> 00:48:10,040
Speaker 2: a percent of your wealth all you know, the rest

800
00:48:10,120 --> 00:48:13,920
Speaker 2: is all just anxiety inducing counterparty risk.

801
00:48:14,239 --> 00:48:16,720
Speaker 1: Well, I'll tell you what does lebone is a legacy

802
00:48:17,239 --> 00:48:21,759
Speaker 1: and you mentioned mortality, but sadly, neither you nor I

803
00:48:22,040 --> 00:48:24,160
Speaker 1: am going to live forever. It's a bit of a

804
00:48:24,200 --> 00:48:26,880
Speaker 1: personal question and a cynic may say that you do

805
00:48:27,000 --> 00:48:29,680
Speaker 1: this because you have something to financially gain. But I

806
00:48:29,680 --> 00:48:32,319
Speaker 1: feel like, after this conversation, the effort that you put in,

807
00:48:32,400 --> 00:48:36,160
Speaker 1: the generosity with your time, why do you bother educating

808
00:48:36,200 --> 00:48:38,279
Speaker 1: everyone on this and talking about.

809
00:48:38,040 --> 00:48:40,640
Speaker 2: The you know, I mean even if you take a

810
00:48:40,719 --> 00:48:43,719
Speaker 2: guy like Jack Dorsey and he asked about Beitquin, he said,

811
00:48:43,719 --> 00:48:45,319
Speaker 2: I didn't do it for the money. I did it

812
00:48:45,360 --> 00:49:02,280
Speaker 2: to fix the money. The legacy is the English language, electricity, fire, fission, fusion, engineering, right, telecommunications, right, mathematics,

813
00:49:02,960 --> 00:49:06,480
Speaker 2: all of these things. And what's the legacy here. It's

814
00:49:06,640 --> 00:49:12,440
Speaker 2: a monetary protocol, which is true. Right. The history of

815
00:49:12,480 --> 00:49:15,960
Speaker 2: the human race, if you look at it, it's fraught

816
00:49:16,040 --> 00:49:22,320
Speaker 2: with people dying from dirty water, dirty air, dirty clothes,

817
00:49:22,920 --> 00:49:28,720
Speaker 2: dirty environments, you know, dirty everything. Right, It's like dirty

818
00:49:29,120 --> 00:49:35,719
Speaker 2: dirty blood, and you know overcoming that with electricity and

819
00:49:35,800 --> 00:49:39,480
Speaker 2: clean water. Right. Just the joke is like a poor

820
00:49:39,560 --> 00:49:41,600
Speaker 2: person sits down at a table and they put a

821
00:49:41,600 --> 00:49:44,080
Speaker 2: glass of tap water in front of them, and that's

822
00:49:44,080 --> 00:49:46,840
Speaker 2: what you drink if you have no money. If you

823
00:49:46,840 --> 00:49:48,920
Speaker 2: have money, you buy a coke zero, or if you

824
00:49:48,920 --> 00:49:50,399
Speaker 2: have a lot of money, you buy a thousand dollars

825
00:49:50,400 --> 00:49:53,600
Speaker 2: bottle of wine, but the poor person drinks the glass

826
00:49:53,640 --> 00:49:57,439
Speaker 2: of water. And you know, I just finished reading again

827
00:49:57,520 --> 00:50:00,760
Speaker 2: The Story of Civilization by Will Durant. It's like whatever,

828
00:50:01,040 --> 00:50:03,360
Speaker 2: you know, the books are all over there. It's eleven volumes,

829
00:50:03,400 --> 00:50:06,720
Speaker 2: it's fifteen thousand pages. You read it all eleven volumes

830
00:50:07,040 --> 00:50:12,320
Speaker 2: beginning to the end. And there's thousand stories of famous

831
00:50:12,360 --> 00:50:16,560
Speaker 2: people that died of gout because they didn't drink water.

832
00:50:16,800 --> 00:50:20,080
Speaker 2: They drank wine because the water had bacteria in it

833
00:50:20,160 --> 00:50:22,960
Speaker 2: and cholera, and you died of infection if you drank

834
00:50:23,000 --> 00:50:26,319
Speaker 2: full water. If you were the king of England, you

835
00:50:26,360 --> 00:50:30,160
Speaker 2: couldn't get clean water. Then the rest of them died

836
00:50:30,160 --> 00:50:33,560
Speaker 2: because they walked past the swamp, got bit by a

837
00:50:33,560 --> 00:50:37,479
Speaker 2: mosquito and they you know, they didn't have any cure

838
00:50:37,560 --> 00:50:40,239
Speaker 2: for a malaria, they had no modern medicine. Or they

839
00:50:40,320 --> 00:50:44,600
Speaker 2: died of tuberculosis because there's no penicillin or there's no

840
00:50:44,760 --> 00:50:52,200
Speaker 2: antibiotics you know, to treat it. And so today, right,

841
00:50:52,280 --> 00:50:55,520
Speaker 2: it's like, what's your legacy. It's like clean the air,

842
00:50:55,719 --> 00:50:59,360
Speaker 2: clean the water. What kills the patient? It's dirty food,

843
00:50:59,440 --> 00:51:03,440
Speaker 2: dirty winter, dirty air. Right, how do we kill George Washington?

844
00:51:03,680 --> 00:51:07,560
Speaker 2: We bled him to death. We bled him to death, right,

845
00:51:07,600 --> 00:51:11,560
Speaker 2: that's why he died. And so what's killing every corporation

846
00:51:11,640 --> 00:51:16,360
Speaker 2: on earth? It's dirty money, dirty capital. To be precise,

847
00:51:17,440 --> 00:51:21,760
Speaker 2: the asset that every publicly traded company fifty thousand companies

848
00:51:21,880 --> 00:51:25,640
Speaker 2: use is sovereign debt. Sovereign debt yields three percent after

849
00:51:25,800 --> 00:51:29,800
Speaker 2: tax at best two percent, the cost of capitals thirteen percent.

850
00:51:30,120 --> 00:51:33,319
Speaker 2: It's a negative real yield of minus ten percent. It

851
00:51:33,360 --> 00:51:35,319
Speaker 2: means that you hold a billion dollars, you lose one

852
00:51:35,400 --> 00:51:39,239
Speaker 2: hundred million a year holding the money. It's like forcible

853
00:51:39,360 --> 00:51:43,239
Speaker 2: chemo therapy for your healthy fourteen year old teenager. Or

854
00:51:43,280 --> 00:51:45,680
Speaker 2: it's like strapping the twelve year old kid down and

855
00:51:45,719 --> 00:51:48,560
Speaker 2: taking two points of their blood every day and sending

856
00:51:48,600 --> 00:51:51,560
Speaker 2: them off the track. Practice the very mobid metiful.

857
00:51:51,640 --> 00:51:53,959
Speaker 3: But I'm picking out what you're putting down.

858
00:51:54,120 --> 00:51:58,480
Speaker 2: The point is it's medieval. But at the end of

859
00:51:58,520 --> 00:52:02,640
Speaker 2: the day, that's the scourge, the burden of humanity that

860
00:52:02,680 --> 00:52:05,759
Speaker 2: they've been hauling for thousands of years. And so when

861
00:52:05,760 --> 00:52:09,439
Speaker 2: you ask what is human progress, what elevated the civilization?

862
00:52:10,520 --> 00:52:15,359
Speaker 2: You know it's technology and it you know a lot

863
00:52:15,400 --> 00:52:19,480
Speaker 2: of painters they went blind because a middle class family

864
00:52:19,480 --> 00:52:24,319
Speaker 2: can afford one candle. Look around you, right, Each one

865
00:52:24,400 --> 00:52:29,200
Speaker 2: of those is one middle class family of light, clean light,

866
00:52:29,560 --> 00:52:38,160
Speaker 2: clean water, heat, air conditioning, electricity, energy, clean blood, antibiotics, right,

867
00:52:38,280 --> 00:52:41,640
Speaker 2: a language you can speak. Right. All of these things

868
00:52:41,719 --> 00:52:47,480
Speaker 2: are defined modernity. So what is my agenda? My agendas

869
00:52:47,520 --> 00:52:51,040
Speaker 2: fixed the money because the fifty thousand companies have a

870
00:52:51,080 --> 00:52:54,279
Speaker 2: life expectancy of ten years. You know why you die

871
00:52:54,280 --> 00:52:57,640
Speaker 2: in ten years when you could live forever. It's because

872
00:52:57,960 --> 00:53:01,600
Speaker 2: you have toxic chemicals in your vein. I can kill

873
00:53:01,640 --> 00:53:04,719
Speaker 2: a healthy person if I inject poison into their vein.

874
00:53:05,239 --> 00:53:07,760
Speaker 2: I can kill a healthy person by sucking the blood

875
00:53:07,840 --> 00:53:12,799
Speaker 2: out of their body. If the money's broken. All eight

876
00:53:12,840 --> 00:53:17,800
Speaker 2: billion people right have toxic capital. All three hundred million

877
00:53:17,920 --> 00:53:24,920
Speaker 2: companies have toxic capital. Every institution, every nonprofit, every government,

878
00:53:24,960 --> 00:53:29,040
Speaker 2: every city, every state, every idea. Everything you wish to

879
00:53:30,120 --> 00:53:35,720
Speaker 2: accomplish you need in part economic energy. You need energy

880
00:53:35,760 --> 00:53:40,760
Speaker 2: to accomplish it. What is electricity. It's clean silent energy,

881
00:53:41,640 --> 00:53:45,000
Speaker 2: clean silent energy. Take away the electricity. Look at everything

882
00:53:45,040 --> 00:53:49,120
Speaker 2: around you. We're in the dark. This podcast is not happening.

883
00:53:49,560 --> 00:53:55,320
Speaker 2: Clean silent energy. Catapult A created cities, It created Manhattan,

884
00:53:55,320 --> 00:54:02,480
Speaker 2: it created the modern world. What is bitcoin? It's clean, silent, programmable,

885
00:54:03,000 --> 00:54:08,680
Speaker 2: immortal money. Right. What's it worth? It's worth half of everything.

886
00:54:09,680 --> 00:54:12,440
Speaker 2: It's not worth the other half. It won't fly you,

887
00:54:12,560 --> 00:54:15,080
Speaker 2: and it won't carry your cancer, and it won't make

888
00:54:15,120 --> 00:54:17,880
Speaker 2: you happy, and it won't solve your mental issue. And

889
00:54:17,920 --> 00:54:20,520
Speaker 2: it won't make your children love you. It's not all that,

890
00:54:21,760 --> 00:54:25,040
Speaker 2: and it won't stop a bullet. Right. The world's full

891
00:54:25,080 --> 00:54:30,720
Speaker 2: of stuff, right, materials and vehicles and technologies and medicines

892
00:54:30,800 --> 00:54:35,040
Speaker 2: that do things. What is it? It's economic energy. It's

893
00:54:35,080 --> 00:54:39,800
Speaker 2: the other half. Right, it'll solve half the world's problem.

894
00:54:40,280 --> 00:54:42,759
Speaker 2: I give you energy that I give you a battery

895
00:54:42,880 --> 00:54:44,560
Speaker 2: that doesn't lose its power.

896
00:54:45,280 --> 00:54:48,080
Speaker 1: You know that'd be nice because one of our camera

897
00:54:48,120 --> 00:54:49,200
Speaker 1: batteries stop tough.

898
00:54:49,200 --> 00:54:51,680
Speaker 2: Wa Hey, I wear this watch. I don't have to

899
00:54:51,760 --> 00:54:53,440
Speaker 2: take it off. If you get an Apple watch, you

900
00:54:53,520 --> 00:54:56,520
Speaker 2: gotta recharge it every night. I get. What about a

901
00:54:56,560 --> 00:54:59,760
Speaker 2: battery that lasts forever? Right, I mean that's the problem

902
00:55:00,200 --> 00:55:02,879
Speaker 2: of nuclear fusion. Give me a power source I could

903
00:55:02,920 --> 00:55:05,920
Speaker 2: put in my pocket that will last forever. Now, imagine

904
00:55:05,920 --> 00:55:09,320
Speaker 2: how much better of the world is Bitcoin? Is digital energy?

905
00:55:09,680 --> 00:55:13,880
Speaker 2: If you want your company, your family, your endowment to

906
00:55:14,000 --> 00:55:18,000
Speaker 2: last forever. You have to capitalize it with an asset

907
00:55:18,080 --> 00:55:22,880
Speaker 2: which doesn't degrade at the rate of the rate of

908
00:55:22,920 --> 00:55:26,720
Speaker 2: the dollar is seven percent a year for one hundred years.

909
00:55:26,840 --> 00:55:29,080
Speaker 2: When you lose seven percent of your energy for one

910
00:55:29,120 --> 00:55:31,319
Speaker 2: hundred years, you lose ninety nine point nine percent of

911
00:55:31,360 --> 00:55:34,799
Speaker 2: whatever you are over one hundred years. And the only

912
00:55:34,840 --> 00:55:36,719
Speaker 2: alternative is you've got to be an investor. So now

913
00:55:36,719 --> 00:55:38,960
Speaker 2: you juggle razor blades. It's like, oh, I got to go,

914
00:55:39,080 --> 00:55:41,040
Speaker 2: like build something a warehouse and it will last for

915
00:55:41,120 --> 00:55:42,920
Speaker 2: thirty two years, and fight a tenant who's not going

916
00:55:42,960 --> 00:55:44,640
Speaker 2: to pay the rent, and then I get tax on it,

917
00:55:44,719 --> 00:55:45,960
Speaker 2: and then I got to go and talk to the

918
00:55:45,960 --> 00:55:48,359
Speaker 2: politician who created the tax, and I got to run

919
00:55:48,400 --> 00:55:50,319
Speaker 2: for office, And like, your world becomes just one of

920
00:55:50,400 --> 00:55:55,320
Speaker 2: misery because you're attempting to not lose your economic energy.

921
00:55:56,600 --> 00:56:00,319
Speaker 2: So yeah, I see bitcoin as a profound step forward

922
00:56:00,360 --> 00:56:04,560
Speaker 2: for the human race because for the first time economics,

923
00:56:04,600 --> 00:56:07,720
Speaker 2: you know, crosses from being an art to being a science.

924
00:56:08,400 --> 00:56:11,880
Speaker 2: For the first time, you have perfect money or a

925
00:56:12,000 --> 00:56:17,920
Speaker 2: perfect capital asset, non defective. Once you understand see the

926
00:56:17,960 --> 00:56:21,279
Speaker 2: steel behind you, I have steel vaults run into it.

927
00:56:21,360 --> 00:56:23,839
Speaker 2: Still there. Okay, they weigh two tons.

928
00:56:24,280 --> 00:56:26,640
Speaker 3: I feel like I'm going a goal vault, a vault

929
00:56:26,640 --> 00:56:27,120
Speaker 3: in event.

930
00:56:27,120 --> 00:56:30,000
Speaker 2: I happen to like metal? What is it? It's material energy.

931
00:56:30,280 --> 00:56:32,359
Speaker 2: You ever seen a steel refiner. You put a lot

932
00:56:32,400 --> 00:56:36,080
Speaker 2: of energy in the front, a lot of energy, an

933
00:56:36,120 --> 00:56:40,520
Speaker 2: outcome steel, And what's the significance? It will stop a bullet?

934
00:56:41,200 --> 00:56:44,080
Speaker 2: What else will it do? You can create a skyscraper

935
00:56:44,120 --> 00:56:47,920
Speaker 2: with it. If you build one hundred story building with steel,

936
00:56:48,840 --> 00:56:52,680
Speaker 2: it will withstand for a storm, it will withstand gravity.

937
00:56:52,840 --> 00:56:55,439
Speaker 2: You can stand on the ninety ninth floor. The floor

938
00:56:55,480 --> 00:56:57,959
Speaker 2: will not crash, you will not die. We can build

939
00:56:57,960 --> 00:57:00,200
Speaker 2: a civilization based on it. What did we do? We

940
00:57:00,280 --> 00:57:04,600
Speaker 2: built a civilization on steel. You know, the highest form

941
00:57:05,360 --> 00:57:09,200
Speaker 2: of material energy the human race could channel. Take the

942
00:57:09,280 --> 00:57:14,200
Speaker 2: steel away. I'm going to give you wood. Go to Nice,

943
00:57:14,480 --> 00:57:16,720
Speaker 2: Go to Europe. Look at the kind of buildings they

944
00:57:16,840 --> 00:57:20,960
Speaker 2: built before steel. They're all five stories max. You take

945
00:57:21,000 --> 00:57:24,360
Speaker 2: away the steel in electricity, right, those are two big ones.

946
00:57:24,400 --> 00:57:27,880
Speaker 2: Take away the electricity. You have no elevator. Take away steel.

947
00:57:28,000 --> 00:57:35,080
Speaker 2: The building falls over steel. Clean clean power, clean energy,

948
00:57:35,520 --> 00:57:40,080
Speaker 2: like almost clean adnerable energy. Can't even see it, clean

949
00:57:40,120 --> 00:57:46,720
Speaker 2: invisible energy. And then almost indestructible material energy. Put the

950
00:57:46,760 --> 00:57:51,480
Speaker 2: two together, and you build the modern world. And so

951
00:57:52,240 --> 00:57:54,680
Speaker 2: the problem, as I see it in the economic world

952
00:57:54,800 --> 00:57:58,720
Speaker 2: is we never had economic steel. We've had We've had

953
00:57:58,720 --> 00:58:03,920
Speaker 2: the equivalent of economic balsa wood, you know, economic clay.

954
00:58:04,560 --> 00:58:09,120
Speaker 2: We build clay houses and drink houses and straw houses,

955
00:58:09,480 --> 00:58:12,200
Speaker 2: and we build houses on swamps, you know. And the

956
00:58:12,240 --> 00:58:16,760
Speaker 2: Bible says, build your house on a rock, not sinking sand,

957
00:58:16,920 --> 00:58:20,480
Speaker 2: you know, build on a solid granite foundation. So what

958
00:58:20,560 --> 00:58:25,120
Speaker 2: is Manhattan? It is one hundred story steel buildings powered

959
00:58:25,160 --> 00:58:30,520
Speaker 2: by electricity on shist closest to granite you can find.

960
00:58:31,280 --> 00:58:36,360
Speaker 2: That's the recipe for civilization. Okay, that's what bitcoin is.

961
00:58:37,120 --> 00:58:40,640
Speaker 2: I'm a single guy. I have no children. When I'm gone,

962
00:58:40,720 --> 00:58:44,880
Speaker 2: I'm gone. I've got, you know, just like Satoshi left

963
00:58:44,880 --> 00:58:48,960
Speaker 2: a million bitcoin to the universe. So I'm leaving whatever

964
00:58:49,040 --> 00:58:52,120
Speaker 2: I've got to the civilization. But it occurs to me

965
00:58:52,240 --> 00:58:56,520
Speaker 2: that eight billion people with crypto steel or economic steel

966
00:58:56,960 --> 00:59:00,320
Speaker 2: can build something much grander in the twenty first cente

967
00:59:01,000 --> 00:59:04,840
Speaker 2: then all the twentieth century economists struggling with clay and

968
00:59:05,040 --> 00:59:06,000
Speaker 2: cotton candy.

969
00:59:07,120 --> 00:59:08,479
Speaker 3: Thank you so much for your time.

970
00:59:08,560 --> 00:59:11,720
Speaker 2: I really enjoyed this Michael, thank you, my pleasure,