WEBVTT - Jeff Booth on Bitcoin's Future: A Deep Dive into Decentralization and Innovation 0:00:00.480 --> 0:00:03.800 All right. Jeff Booth, the author of the Price of Tomorrow, 0:00:03.800 --> 0:00:06.520 a book that has oh Man really sent people into 0:00:06.519 --> 0:00:08.920 a different direction. Awesome book, Price of Tomorrow and ego 0:00:08.960 --> 0:00:13.280 death Capital. I don't know, maybe prolific tech investor entrepreneur 0:00:13.360 --> 0:00:15.960 will see anyway. Jeff, thanks so much for joining me today. 0:00:16.840 --> 0:00:18.759 Great to see you, my friend man so much to 0:00:18.800 --> 0:00:21.160 talk about. We were having fun catching up, just talking 0:00:21.160 --> 0:00:24.200 about fun personal stuff snowboarding and surfing and taking trips 0:00:24.200 --> 0:00:27.360 and things like that. But I think we're both also 0:00:27.480 --> 0:00:30.600 thinking that a lot of this bitcoin technology stuff is 0:00:30.640 --> 0:00:32.280 also fun as well. So I want to dive into 0:00:32.320 --> 0:00:38.879 that the technology is advancing so fast and sort of 0:00:38.920 --> 0:00:41.199 imagining where this goes in the world and how we're 0:00:41.200 --> 0:00:45.520 rebuilding and changing things, how lives can change, how humanity 0:00:45.520 --> 0:00:48.400 can flourish. That's the exciting part to me. I've often 0:00:48.440 --> 0:00:50.880 said that the price is sort of the least interesting thing, 0:00:51.000 --> 0:00:53.960 but let's talk about that for a minute. The Bitcoin 0:00:54.040 --> 0:00:56.600 ETF is the news. I mean, that is just dominating 0:00:56.600 --> 0:01:00.520 the news. I don't like that because it's mostly just 0:01:00.560 --> 0:01:04.240 about an investment kind of a viewpoint of it. The 0:01:04.319 --> 0:01:07.560 number go up technology, if you will. But you know, 0:01:08.160 --> 0:01:09.880 as a tech entrepreneur, you know, you have sort of 0:01:09.880 --> 0:01:11.840 this diffusion of innovation and there's a cas and that 0:01:11.840 --> 0:01:14.040 has to be crossed. Maybe we're doing that. What's your 0:01:14.080 --> 0:01:15.760 thoughts on the bitcoin and t F. Let's dig into 0:01:15.800 --> 0:01:16.280 that a little bit. 0:01:17.120 --> 0:01:21.600 Yeah, probably similar to you. I think if you think 0:01:21.640 --> 0:01:25.800 about how many people understand bitcoin right now in the world, 0:01:26.120 --> 0:01:31.400 and you should say, say that's a one percent, and 0:01:31.440 --> 0:01:35.360 then how many people really understand what it means and 0:01:35.400 --> 0:01:37.720 how things are in a change to it. We can 0:01:37.760 --> 0:01:40.800 explore some of that through this podcast if you want, 0:01:40.880 --> 0:01:44.560 but that would be probably five percent of the one 0:01:44.560 --> 0:01:49.080 percent of so the how small a number of people 0:01:49.200 --> 0:01:52.160 actually understand what's happening here in this asset class. And 0:01:52.160 --> 0:01:54.840 then what's happening is the technology is being built on 0:01:54.920 --> 0:01:57.200 top of this asset class and what's going to happen 0:01:57.480 --> 0:02:00.920 what it does to the existing system such a tiny 0:02:01.000 --> 0:02:05.720 piece of the overall market that no wonder people are confused. 0:02:06.000 --> 0:02:09.760 And so now if you put in perspective with that, 0:02:10.120 --> 0:02:15.000 with what the ETF is doing, it is bringing more 0:02:15.040 --> 0:02:19.280 awareness to this asset class. And what ends up happening 0:02:19.639 --> 0:02:22.880 in this asset class is people start to see, wait, 0:02:23.280 --> 0:02:27.480 I'm living in a system with manipulated money, a manipulated ledger, 0:02:27.720 --> 0:02:30.520 and that's the reason why prices are going up. And 0:02:30.560 --> 0:02:33.560 then they learn a little bit about bitcoin, and maybe 0:02:33.600 --> 0:02:37.520 they learn about it because they think, Okay, that'll protect me, 0:02:37.600 --> 0:02:40.080 It'll give me a hedge against the system that's failing. 0:02:40.120 --> 0:02:43.520 Over time, and then some of those people, over time 0:02:43.680 --> 0:02:46.799 learn more and more about it and start shifting more 0:02:46.840 --> 0:02:49.360 and more of their attention into it as they understand 0:02:49.440 --> 0:02:52.000 it more. So if you just look through that lens 0:02:52.040 --> 0:02:55.800 of the ATF, you'd say it's great. It's just it's 0:02:56.080 --> 0:02:58.720 marketing that is going to bring a whole bunch more 0:02:58.720 --> 0:03:02.839 of awareness about what's happen happening to money and how 0:03:02.919 --> 0:03:08.280 you can protect yourself from money being debased. And people 0:03:08.360 --> 0:03:12.000 are going to protect themselves because of that. From there, 0:03:12.360 --> 0:03:15.960 the question is how many people remove to self custody 0:03:16.240 --> 0:03:20.359 and as well, and I think you have to look 0:03:20.400 --> 0:03:22.360 at some of the things that you see in the 0:03:22.400 --> 0:03:27.480 world today, is behind the scenes being coordinated and whether 0:03:27.520 --> 0:03:30.360 they are or not, I think it's worth thinking that way. 0:03:31.680 --> 0:03:33.799 And why I say that is is if you if 0:03:33.840 --> 0:03:38.320 you said human nature, if you could if you could 0:03:38.840 --> 0:03:42.640 get if you could steal the productivity that should flow 0:03:42.720 --> 0:03:46.240 to society in the form of lower prices. By controlling money. 0:03:47.080 --> 0:03:52.040 Human nature says that will always happen, right, Greed will 0:03:52.080 --> 0:03:54.600 make that happen no matter what, and we've always lived 0:03:54.680 --> 0:03:56.119 so all throughout. 0:03:55.840 --> 0:03:57.560 His will make prices drop. 0:03:57.800 --> 0:04:03.360 You're saying no, no, no, So this natural state of 0:04:03.400 --> 0:04:09.680 a free market is deflationary, so there is no inflation 0:04:09.920 --> 0:04:12.040 over a long enough time period because what we do 0:04:12.520 --> 0:04:16.920 we use things that give us more value. Why you're 0:04:17.040 --> 0:04:20.760 using riverside right now app to create this podcast is 0:04:20.760 --> 0:04:23.440 it gives you more value. And if something competed with 0:04:23.560 --> 0:04:25.920 riverside that didn't give you more value and it costs more, 0:04:25.960 --> 0:04:28.760 you wouldn't use You wouldn't use it. If something gave 0:04:28.800 --> 0:04:31.560 you more value and costs less, you would use it. 0:04:32.000 --> 0:04:36.560 So everything we use creates more use. It gives us 0:04:36.560 --> 0:04:40.080 more value, and that means the natural state has to 0:04:40.120 --> 0:04:44.080 be deflationary. Of a free market. The only reason things 0:04:44.080 --> 0:04:49.120 are inflationary short of short term cycles, right with the 0:04:49.120 --> 0:04:52.000 supply constraint or something. But then what ends up happening 0:04:52.040 --> 0:04:54.240 is the free mark. Because of the margins of that 0:04:54.279 --> 0:04:59.479 supply constraint, entrepreneurs attack it and create a different way 0:04:59.520 --> 0:05:02.960 of a model to great abundance. And so the natural 0:05:02.960 --> 0:05:05.560 state over a longer term is always of a free 0:05:05.600 --> 0:05:10.640 market is deflationary. We've always lived in the opposite, and 0:05:11.080 --> 0:05:14.480 we live in the opposite because effectively, if you could 0:05:14.520 --> 0:05:20.159 steal a small amount of money from everybody over time, 0:05:20.640 --> 0:05:23.880 you can aggregate a massive control for doing nothing. So 0:05:24.000 --> 0:05:27.560 human society it always has been wired. If you could 0:05:27.600 --> 0:05:31.400 game it, you would, right. That's why gold gets corrupted, 0:05:31.839 --> 0:05:35.320 That's why you fractionalize systems. That's why eventually you go 0:05:35.400 --> 0:05:37.720 back to you go to war, because it breaks world 0:05:38.360 --> 0:05:40.880 so much that then somebody says, I'm going to reset 0:05:40.920 --> 0:05:45.200 the system on a new standard, and then it goes 0:05:45.240 --> 0:05:49.559 through that again. So natural state is free. We've always 0:05:49.640 --> 0:05:51.880 lived in the opposite. That means every history book that 0:05:51.920 --> 0:05:56.520 anybody has ever written has this error code in it. 0:05:56.520 --> 0:05:59.039 It also has the error code because we've never had 0:05:59.080 --> 0:06:03.880 something decentral lives and secure that could be decentralized and 0:06:03.920 --> 0:06:07.440 secure throughout time, and the winners write the history books. 0:06:08.040 --> 0:06:11.080 So it means all of our previous history to this 0:06:11.120 --> 0:06:14.279 point before bitcoin was built with this aero code. And 0:06:14.360 --> 0:06:18.960 so it makes total sense that people are confused with 0:06:19.000 --> 0:06:24.159 what this new insight drives forward rather than looking through 0:06:24.200 --> 0:06:27.479 the past. It makes perfect sense. Now what are we 0:06:27.600 --> 0:06:30.880 up against? What does bitcoin up against? If you have 0:06:30.960 --> 0:06:34.720 a system that's ten thousand times bigger, that gains its 0:06:34.880 --> 0:06:41.960 power by stealing yours, by stealing money, then what is 0:06:42.000 --> 0:06:46.840 it up against. It's up against all human action doing that. 0:06:47.240 --> 0:06:49.880 And I'm going to get in specifically how that works. 0:06:50.279 --> 0:06:54.919 And it is also up against some coordination of you 0:06:54.960 --> 0:06:59.640 could say, the ETF. If the ETF and what Warren 0:06:59.720 --> 0:07:02.560 is doing at the same time to try to make 0:07:02.680 --> 0:07:10.600 self self custodial illegal, right, and the ETF can short 0:07:10.720 --> 0:07:15.240 and create fractionalized on top of bitcoin and then acquire 0:07:15.280 --> 0:07:20.560 more bitcoin, then you could say, and it's worth thinking 0:07:20.600 --> 0:07:23.840 that that could happen because then you're immune from it. 0:07:25.280 --> 0:07:27.880 But if that was coordinated, I'm not saying it is, 0:07:27.920 --> 0:07:30.320 but if that was coordinated, what would happen in that 0:07:30.400 --> 0:07:33.120 world is a whole bunch of people would trade their 0:07:33.120 --> 0:07:38.440 bitcoin or the paper bitcoin in is the ets acquired 0:07:38.480 --> 0:07:42.000 more and more bitcoin, and you could create that leverage 0:07:43.000 --> 0:07:48.480 to suppress bitcoin's price, just like just like gold has 0:07:48.480 --> 0:07:53.280 been suppressed, right, And you could create effectively unlimited leverage 0:07:53.280 --> 0:07:57.080 in that system over time and paper contracts to bitcoin. 0:07:57.960 --> 0:08:02.040 But for people that are aired of that, and I'm 0:08:02.080 --> 0:08:03.680 not saying some of that won't happen in the short 0:08:04.120 --> 0:08:09.600 term because an office action by a Warren making it 0:08:09.640 --> 0:08:12.080 will drive fear in the market. At the same time 0:08:12.120 --> 0:08:15.680 people could short it could drive price in the short 0:08:15.760 --> 0:08:20.480 term going down. But what would that then, Cause there's 0:08:20.520 --> 0:08:22.800 too many people in the world right now, and bitcoin 0:08:22.920 --> 0:08:26.160 is self custodial, and every year it gets more decentralized 0:08:26.160 --> 0:08:28.800 and secure. There's too many people in the world that 0:08:28.880 --> 0:08:32.480 have looked behind the curtain. And once they've looked behind 0:08:32.520 --> 0:08:35.600 the curtain and how money works, they're never going back. 0:08:36.640 --> 0:08:39.640 And so you probably run a node. I run a node. 0:08:39.960 --> 0:08:44.800 I'm not selling my bitcoin, and every time price falls 0:08:44.880 --> 0:08:48.520 we actually I buy it anyways. But there's more and 0:08:48.559 --> 0:08:51.760 more people bitcoiners that understand this that are going to 0:08:51.960 --> 0:08:57.920 take that into self custody. So the reaction to the 0:08:58.000 --> 0:09:05.599 system driving to financialize this creates more self self custody 0:09:05.640 --> 0:09:11.440 at certain prices, and as that happens, eventually, if it 0:09:11.600 --> 0:09:14.880 was coordinated, if there was something again not saying there is, 0:09:15.480 --> 0:09:18.600 but if it was and that was an attack factor 0:09:18.640 --> 0:09:20.920 for a bitcoin. What would it end up happening is 0:09:20.920 --> 0:09:24.720 it would cause the biggest short squeeze the world's ever 0:09:24.760 --> 0:09:30.280 seen eventually, and on that short squeeze would liquidate financial 0:09:30.280 --> 0:09:38.560 players that were not acting with integrity or honesty. Because 0:09:38.600 --> 0:09:44.160 bitcoin doesn't care. It's imposing fair rules on society rather 0:09:44.240 --> 0:09:46.720 than it could care less. It could care less about 0:09:46.760 --> 0:09:51.960 you and me everything else. It's just imposing that discipline. 0:09:52.440 --> 0:09:54.600 Wow, a lot to unpack right there. I was making 0:09:54.640 --> 0:09:57.680 some notes. We can come back to them. I asked 0:09:57.679 --> 0:10:00.760 you if to clarify something, and it wrong, but it 0:10:00.800 --> 0:10:03.880 got me thinking. I said, so, it's it's greed that 0:10:04.000 --> 0:10:06.280 drives prices down. You said no, But if you think 0:10:06.320 --> 0:10:08.880 about it, in a true free market, if we could 0:10:09.040 --> 0:10:12.040 stay free and not be co opted and gamed. So 0:10:12.240 --> 0:10:14.199 in a true free market, it almost would be greed 0:10:14.200 --> 0:10:16.600 that would drive prices down, because if I saw you 0:10:16.640 --> 0:10:20.240 were making a killing in a certain category, my greed 0:10:20.240 --> 0:10:21.960 would say, well, I want to step in in front 0:10:21.960 --> 0:10:24.480 of Jeff and I'll make a little bit less, right. 0:10:24.720 --> 0:10:28.040 Yeah, And so go ahead and keep going. 0:10:28.120 --> 0:10:29.800 Yeah. It's just you know, it's interesting when you kind 0:10:29.840 --> 0:10:31.079 of flip it on its head, and you have to 0:10:31.160 --> 0:10:33.360 kind of put that in sort of parentheses in a 0:10:33.480 --> 0:10:35.840 free market, because you know, what we're being told by 0:10:35.880 --> 0:10:38.720 the leaders is it's greed that's driving prices up. It's 0:10:38.760 --> 0:10:41.480 these greedy gas stations that drive prices, et cetera. But 0:10:41.600 --> 0:10:44.600 in a free market, greed would actually drive prices down. 0:10:45.480 --> 0:10:46.559 It'd be the opposite. 0:10:47.080 --> 0:10:50.000 We only get paid. We get paid. Entrepreneurs get paid 0:10:50.280 --> 0:10:53.760 when they create more value for others, period, right, And 0:10:54.040 --> 0:10:58.959 and that's a competitive process. And so they see and 0:10:59.360 --> 0:11:02.720 in a free market, that competitive process continues to attack. 0:11:02.920 --> 0:11:04.960 And where would an entrepreneur go. Would you go to 0:11:05.040 --> 0:11:08.679 create the next calculator app? Yeah, it's already free or 0:11:08.720 --> 0:11:11.040 would you or would you go create? Or would you 0:11:11.040 --> 0:11:13.320 go attack an industry that had high margins? 0:11:13.360 --> 0:11:15.760 Of course, agree, it makes perfect sense. 0:11:16.440 --> 0:11:21.240 So the free market is constantly under attack. There is 0:11:21.280 --> 0:11:23.640 no monopoly in a free market, Yeah, there. 0:11:23.520 --> 0:11:26.280 Can't be so in in you know, in this diffusion 0:11:26.280 --> 0:11:28.240 of innovation, you know this bell curve, and you have 0:11:28.280 --> 0:11:30.080 sort of the innovators, the true believers, and then you 0:11:30.120 --> 0:11:32.079 sort of have this chasm. And the chasm is where 0:11:32.320 --> 0:11:35.480 something has to shift, you know, in the mindset of 0:11:35.520 --> 0:11:37.760 people to sort of bring that early majority in. And 0:11:37.800 --> 0:11:40.800 there's lots of things that could cause that shift to happen, 0:11:40.840 --> 0:11:44.000 that that chasm to be crossed, if you will. I 0:11:44.040 --> 0:11:46.040 think the ETF is a big piece of that. So 0:11:46.080 --> 0:11:48.640 all these people who think, well, it's just magic internet money. 0:11:48.640 --> 0:11:50.440 I don't trust it, it's a scam at the tulip 0:11:50.440 --> 0:11:52.800 it's whatever, it's too difficult, I don't you know, throw 0:11:52.840 --> 0:11:55.720 it fill in the blank. All of a sudden they're like, well, shoot, 0:11:55.760 --> 0:11:58.120 if my financial advisor tells me to buy it, if 0:11:58.120 --> 0:12:00.680 Blackrock has it, if you know whatever, And so that 0:12:01.000 --> 0:12:05.000 creates the chasm to be crossed. And also there's also 0:12:05.080 --> 0:12:08.160 another paradigm. And so I gave a presentation a big 0:12:08.200 --> 0:12:12.559 buck Boom and packpitcoin on you know, technological Revolutions. I 0:12:12.600 --> 0:12:17.400 talk about him quite quite often. And I got this 0:12:17.440 --> 0:12:22.240 from this book Technological Innovations and Financial Capital by Carlata Perez, 0:12:22.760 --> 0:12:26.440 and she talks about sort of this change and the 0:12:26.600 --> 0:12:28.760 reason the things that these technologies have to do in 0:12:28.840 --> 0:12:30.720 order to sort of have this revolution, and some of 0:12:30.760 --> 0:12:33.000 that is in the mindset and so sort of we 0:12:33.040 --> 0:12:36.240 have this normalcy bias, it's recentcy bias. Hey, money always 0:12:36.280 --> 0:12:38.280 has to go up. Hey, this is just how it goes, 0:12:39.080 --> 0:12:41.760 and so that has to change. But there's people that 0:12:41.800 --> 0:12:44.000 are entrenched in that that don't want that to happen, 0:12:45.400 --> 0:12:47.200 and so we have to sort of fight against that. 0:12:47.200 --> 0:12:49.240 That's sort of this orange pill movement, if you will. 0:12:49.720 --> 0:12:54.080 But you mentioned one more thing, and is that Ledwig 0:12:54.080 --> 0:12:57.160 Guan Misis called it the crackup boom. And then he said, 0:12:57.240 --> 0:13:00.240 and then suddenly the people realize that inflation is both 0:13:00.320 --> 0:13:05.200 permanent and intentional. Yeah, so all of a sudden, you know, 0:13:05.440 --> 0:13:07.679 maybe in the last ten years, inflation has been sort 0:13:07.679 --> 0:13:09.959 of thrown into the forefront of things. The Fed is 0:13:10.000 --> 0:13:12.280 sitting there saying, our goal is to get it back down. 0:13:12.400 --> 0:13:15.640 We only want two percent. Oh so it's intentional that 0:13:15.679 --> 0:13:17.560 you want to steal from me, and I think people 0:13:17.600 --> 0:13:19.640 are doing that. And so sort of bringing this together, 0:13:19.880 --> 0:13:24.679 that chasm not only being brought sort of legitimized by 0:13:25.040 --> 0:13:28.440 Wall Street jumping in, but then also the chasm being 0:13:28.480 --> 0:13:30.760 crossed where people are suddenly waking up to the fact 0:13:30.800 --> 0:13:34.120 that inflation is permanent, and you know, to the point 0:13:34.160 --> 0:13:36.240 that you that you've made I think everybody realizes I 0:13:36.320 --> 0:13:38.920 have to go protect my wealth and when you add 0:13:38.960 --> 0:13:41.680 those two things together, I mean it's a pretty big 0:13:42.720 --> 0:13:44.880 hopefully it'll be a pretty big shift to get people 0:13:44.880 --> 0:13:46.200 to sort of see that new world. 0:13:47.320 --> 0:13:51.600 Yeah, so think about yourself and let's let's go why 0:13:51.640 --> 0:13:55.720 does this exist? And how much do you know about bitcoin? 0:13:55.760 --> 0:13:58.160 And how much of your time is in bitcoin? And 0:13:58.200 --> 0:14:00.800 then play that forward and how and just that say 0:14:01.120 --> 0:14:03.480 how much was it three or four or five years 0:14:03.520 --> 0:14:06.680 ago as you started to understand, and how much is 0:14:06.679 --> 0:14:09.520 it now? And how much will it be? And then 0:14:09.600 --> 0:14:13.319 let's walk through how this works and so how this works. 0:14:13.600 --> 0:14:19.000 So we've already we've already made a point. The free 0:14:19.040 --> 0:14:22.960 market is deflationary, right, The natural state of the free 0:14:23.000 --> 0:14:28.080 market is deflationary. So that means every single person that 0:14:28.120 --> 0:14:30.920 says yep and then goes on carries on their life 0:14:30.920 --> 0:14:34.400 in the other world, is making the other world stronger 0:14:35.280 --> 0:14:39.600 to their own to their own demise. Every single the 0:14:39.600 --> 0:14:42.240 amount of time that you're measuring from the other system, 0:14:42.640 --> 0:14:45.000 if you can say yes, and prices fall to the 0:14:45.000 --> 0:14:48.480 marginal cost of production over time, and technology is a 0:14:48.600 --> 0:14:52.040 lever on that, and it's an exponential lever that makes 0:14:52.040 --> 0:14:56.560 prices fall faster, then what you're doing by trying to 0:14:56.800 --> 0:15:00.400 capture wealth in the existing system. All all of the 0:15:00.400 --> 0:15:04.280 things in the existing system are making everything worse for you. 0:15:04.760 --> 0:15:06.920 And let me just show you how that works. So, 0:15:07.680 --> 0:15:12.400 so you know this mark that the magnificent seven the 0:15:12.480 --> 0:15:16.720 tech companies. Without the return of the tech companies, SMP 0:15:16.840 --> 0:15:23.400 would be negative, right, Okay, So what everybody does? Everybody 0:15:24.240 --> 0:15:28.400 you do. I'm not saying you do, but many people 0:15:28.440 --> 0:15:30.800 listening to this call will store their wealth in the 0:15:30.840 --> 0:15:34.960 tech tech companies, and then they'll use the tech companies 0:15:35.280 --> 0:15:39.280 that are using AI to reduce the labor because they 0:15:39.360 --> 0:15:41.320 use the tech companies because if they don't use the 0:15:41.320 --> 0:15:43.680 tech companies, they don't get the same value. And so 0:15:43.720 --> 0:15:46.760 the tech companies are creating this artificial and general intelligence 0:15:46.920 --> 0:15:51.680 the magni that is reducing the labor. And you should 0:15:51.760 --> 0:15:54.680 have a normal market, you would probably have about five 0:15:54.720 --> 0:15:59.320 percent deflation per year compound and getting more and more. 0:16:00.320 --> 0:16:04.160 So even at that, if you were at zero percent inflation, 0:16:04.280 --> 0:16:06.680 you'd be getting five percent stolen from you a year. 0:16:08.360 --> 0:16:11.640 And you go and spend more of your own money 0:16:11.680 --> 0:16:14.880 trying to protect your money from losing value by putting 0:16:14.880 --> 0:16:18.840 it in a tech company, and they use that at 0:16:18.840 --> 0:16:21.720 creating the monopoly and reducing more and more labor to 0:16:21.880 --> 0:16:25.480 make to drive that faster to give you more value 0:16:26.400 --> 0:16:31.800 fair And so then you say, well, how is this 0:16:31.880 --> 0:16:35.760 monopoly doing this? But if they increase their labor rate 0:16:36.120 --> 0:16:38.840 and much more or much more labor, you wouldn't use 0:16:38.880 --> 0:16:42.920 their service anymore. Somebody else would beat them. So and 0:16:42.960 --> 0:16:47.200 then the pension funds that holds your retirement are all 0:16:47.200 --> 0:16:51.120 indexed to the same thing. So they're driving more and 0:16:51.160 --> 0:16:54.920 more money into the thing that's driving for faster and 0:16:54.960 --> 0:16:59.160 faster deflation, and you're part of your Every single person 0:16:59.200 --> 0:17:01.160 in the world is trying to store their wealth in 0:17:01.200 --> 0:17:04.639 those things because if they don't, they'll lose more money faster. 0:17:05.760 --> 0:17:10.080 Now let's look at the same thing on bitcoin. Bitcoin. 0:17:10.600 --> 0:17:14.200 All of those companies priced in bitcoin are losing value, 0:17:15.560 --> 0:17:19.399 every one of them. All your houses, all your real 0:17:19.480 --> 0:17:23.600 estate is losing value against bitcoin, all of it. But 0:17:23.720 --> 0:17:27.320 most people are storing their wealth within the system that's debasing, 0:17:28.520 --> 0:17:31.480 making it stronger, thinking they're winning on a losing game 0:17:32.240 --> 0:17:36.199 and bitcoin could care less. It's so this system is 0:17:36.240 --> 0:17:40.560 based on a manipulated ledger, and it's manipulating currency units, 0:17:40.600 --> 0:17:44.840 and everybody and your voting in that system to who 0:17:44.880 --> 0:17:50.680 should win, who should get more of the manipulated currency 0:17:51.080 --> 0:17:53.680 units to put to their group or the other group, 0:17:54.720 --> 0:17:58.000 And society is breaking everywhere because of this. But every 0:17:58.040 --> 0:18:01.199 single person, in fact, many of the podcast you listen to, 0:18:02.040 --> 0:18:05.600 are yelling at the same system, and they don't know 0:18:05.640 --> 0:18:09.680 they're making it stronger by yelling at it. Right, all 0:18:09.760 --> 0:18:13.680 of their actions are making it stronger. And so why 0:18:13.760 --> 0:18:16.320 we've created ego death and why I just just tired 0:18:16.359 --> 0:18:19.119 of it. I just said it's nonsense. I wanted to 0:18:19.160 --> 0:18:21.240 spend instead of ninety percent of my time in the 0:18:21.280 --> 0:18:24.119 system that was creating this, I wanted to spend ninety 0:18:24.119 --> 0:18:26.439 five hundred percent of my time in the system that 0:18:26.520 --> 0:18:27.359 was repricing it. 0:18:27.880 --> 0:18:30.040 But if we so let's let's take that, we'll transition 0:18:30.080 --> 0:18:32.560 to ego death. What ego death is a fund that 0:18:32.600 --> 0:18:36.520 you're in that invests into bitcoin companies that are building 0:18:36.520 --> 0:18:40.480 this new world. But let's just take that previous example. 0:18:41.720 --> 0:18:44.960 I had a good conversation with a good friend, mutual friend, 0:18:45.160 --> 0:18:47.919 Jimmy Song, many conversations. We ended up at a lot 0:18:47.920 --> 0:18:50.520 of places at the same time, but in la PEC 0:18:50.560 --> 0:18:53.480 Bitcoin and we were talking about this specifically, and you know, 0:18:53.520 --> 0:18:56.480 he's such a bitcoin purist, Maximus that you should just 0:18:56.480 --> 0:18:58.720 buy bitcoin and not invest in anything. But I'm like, 0:18:58.720 --> 0:19:00.119 you know, who's going to go build this thing? Right, 0:19:00.160 --> 0:19:02.120 we have we have to invest our money. But back 0:19:02.119 --> 0:19:03.600 to kind of the point that you just made, right, 0:19:03.640 --> 0:19:08.320 So we're investing into Facebook to make our lives better, Right, 0:19:08.320 --> 0:19:11.960 We're getting value from that. It makes my communication cheaper, easier, faster, 0:19:12.040 --> 0:19:14.200 et cetera. So I have more value there. But I'm 0:19:14.200 --> 0:19:18.760 putting my money into that system that's causing I'm perpetuating 0:19:18.800 --> 0:19:21.000 that system that's actually causing me to have this inflation 0:19:21.040 --> 0:19:21.400 of force. 0:19:22.440 --> 0:19:24.159 And then I yell at other Then I yell at 0:19:24.160 --> 0:19:26.600 other people because it's their fault. 0:19:26.359 --> 0:19:29.439 Right, But but I do it. But if I'm putting 0:19:29.440 --> 0:19:32.840 my if I'm investing my money into Facebook in order 0:19:32.880 --> 0:19:35.919 to protect my value, I'm hoping that Facebook is going 0:19:35.960 --> 0:19:40.240 to go look faster than the inflation that is debasing 0:19:40.280 --> 0:19:42.840 my value at the same time, right. 0:19:42.680 --> 0:19:46.000 And it's not it's it's it's not it's going up 0:19:46.040 --> 0:19:49.320 at the same rate. So if you look at the monitor, 0:19:49.400 --> 0:19:52.040 if you look at the monetary easing of about the 0:19:52.080 --> 0:19:55.080 liquidity about eight and a half percent per year compounded 0:19:55.600 --> 0:19:59.280 and then so it or maybe some of those companies 0:19:59.320 --> 0:20:01.000 beat it for a fair a short period of time, 0:20:01.160 --> 0:20:04.760 but over the long term, you're just matching your same 0:20:04.760 --> 0:20:08.040 as housing, right, so exactly the same as housing. 0:20:08.080 --> 0:20:10.440 Well, I mean, the S and P five hundred is 0:20:10.480 --> 0:20:13.120 like a perfect proxy for inflation. I think, I think 0:20:13.160 --> 0:20:15.160 what we're saying, and the media and US real estate 0:20:15.200 --> 0:20:19.119 is as well totally. However, there are scarce assets that 0:20:19.200 --> 0:20:22.000 then outperform inflation. So for example, the median US real 0:20:22.080 --> 0:20:24.520 estate went up about forty percent, Austin, the fastest growing 0:20:24.560 --> 0:20:26.120 city of the United States for the last twenty years, 0:20:26.119 --> 0:20:28.600 went up about forty percent, but homes on the lake 0:20:28.760 --> 0:20:31.560 Lakefront Lake Lakefront on Lake Travis went up one hundred 0:20:31.560 --> 0:20:34.960 and fifty percent. Yeah, right, So sort of the S 0:20:34.960 --> 0:20:37.520 and P five hundred, which the manuf is the seven 0:20:37.640 --> 0:20:39.560 sort of make up and drive that have kept up 0:20:39.600 --> 0:20:42.679 with inflation. A few will outperform it for certain periods 0:20:42.720 --> 0:20:46.879 of time if you're a really good exactly right, exactly okay, 0:20:46.920 --> 0:20:49.960 But then contrast that too, Okay. So I am an 0:20:49.960 --> 0:20:52.240 investor or I'm just a regular person. I'm a doctor 0:20:52.280 --> 0:20:54.640 or whatever. I'm making money I have savings. I want 0:20:54.640 --> 0:20:56.840 to protect that savings from BE and D based and 0:20:56.880 --> 0:21:00.720 so I can put it into Nvidia Book et cetera, 0:21:00.800 --> 0:21:02.720 and hopefully that will at least keep up with it, 0:21:02.760 --> 0:21:05.280 potentially beat it. Or I could put it into x 0:21:05.400 --> 0:21:08.280 y Z bitcoin company, which is also a tech company, 0:21:08.320 --> 0:21:10.920 which is also hopefully going to beat it. I mean, 0:21:10.960 --> 0:21:11.840 so what's the million? 0:21:12.359 --> 0:21:18.320 So what's different here is the nine hundred trillion dollars 0:21:18.359 --> 0:21:23.480 of global wealth. Imagine you have a percentage of that ledger, right, 0:21:24.320 --> 0:21:27.359 and you could say, if Mark Moss has a million dollars, 0:21:27.440 --> 0:21:30.080 you could just calculate exactly what percent you have of 0:21:30.080 --> 0:21:34.600 that ledger If that ledger is one point five quadrillion tomorrow, 0:21:35.400 --> 0:21:38.639 because there's a whole bunch more manipulation of money and 0:21:38.720 --> 0:21:41.520 you're part of that ledger doesn't go up by that 0:21:41.640 --> 0:21:44.359 mount you lost money, but you didn't know you lost money. 0:21:44.640 --> 0:21:46.960 That's what That's what you're living in, and that's what 0:21:47.080 --> 0:21:50.480 everyone is pricing their is en And when they naturally 0:21:50.520 --> 0:21:54.960 say what is bitcoin price in this ledger, they're making 0:21:55.000 --> 0:21:59.480 that calculation error. When I say it's saying decentralized and 0:21:59.520 --> 0:22:04.760 secure on the on the base ledge, then it is inevitable. 0:22:04.800 --> 0:22:08.800 If it stay is decentralized and secure, it reprices everything 0:22:08.840 --> 0:22:12.399 in the nine hundred trillion. So you could say, how 0:22:12.480 --> 0:22:15.080 much of a percentage of twenty one million do I 0:22:15.119 --> 0:22:21.199 have for all of time? And compare and contrast how 0:22:21.280 --> 0:22:24.800 much do you need for your living lifestyle? If you 0:22:24.840 --> 0:22:29.320 can hold it decentralized and secure, it will reprice everything else. 0:22:30.040 --> 0:22:33.760 So then then your next question, I think, is why 0:22:33.800 --> 0:22:38.240 would I invest if I can invest in that asset? Essentially, 0:22:38.440 --> 0:22:41.480 if I can own a new if I can own 0:22:41.520 --> 0:22:45.320 the new Internet, not just the value on top of it, 0:22:45.359 --> 0:22:47.560 but I can own a piece of the new Internet, 0:22:47.680 --> 0:22:50.600 and all future value accrues to me. Or is said 0:22:50.640 --> 0:22:52.840 another way that I like to say it is if 0:22:52.880 --> 0:22:55.800 prices should fall to the marginal cost of production, if 0:22:55.800 --> 0:23:00.399 the free market is is deflationary, then the anything that 0:23:00.440 --> 0:23:05.000 can measure it as a fixed currency, So in other words, 0:23:05.080 --> 0:23:07.840 all things forever if you measure in bitcoin will fall 0:23:07.880 --> 0:23:10.440 in price at the same rate they should fall in. 0:23:10.440 --> 0:23:12.399