Speaker 1: Hello, and welcome to another episode of the Mark Moa
Speaker 1: Show where we're talking about bitcoin and cryptocurrencies and the
Speaker 1: decentralized revolution each and every week, and um, you know,
Speaker 1: I try to bring to you the education that you
Speaker 1: need to really understand what's going on the latest news,
Speaker 1: latest and breaking news headlines each never week to keep
Speaker 1: you informed, and then you know, share with you some
Speaker 1: of the best and brightest people in the space to
Speaker 1: kind of give you that perspective. And I want to
Speaker 1: dig into some of the latest breaking news that's going
Speaker 1: on right now. And there is some hot, hot news
Speaker 1: that's actually happening right now as we're talking. I've been
Speaker 1: listening to this uh for a better part of the day.
Speaker 1: And there's a big fight. There's a fight going on
Speaker 1: in UH in Congress, in UH in the government in
Speaker 1: the United States right now. And the fight is, um,
Speaker 1: in my opinion, is framed up a little bit differently
Speaker 1: than they want to frame it up. Um, I think
Speaker 1: they're framing it up. But we kind of have the
Speaker 1: Democrats and the Republicans fighting against each other. The Democrats
Speaker 1: are are ramping up pressure on cryptocurrencies and the Republicans
Speaker 1: are trying to kind of hold them off. But I don't.
Speaker 1: I don't see it like that. I see it like
Speaker 1: they are ramping up. Uh, they're ramping up their ability
Speaker 1: to tell you what you can and can't do in
Speaker 1: the land of the free in the United States that
Speaker 1: I grew up under. Um. You know, we we sent
Speaker 1: our troops to war. My grandfather was a decorated World
Speaker 1: War Two veteran. My father with flu jets in Vietnam.
Speaker 1: You know, We've been fighting for our freedoms and we
Speaker 1: live in the land of the free. And really that's
Speaker 1: what this argument is about. Um. Are we in the
Speaker 1: land of the free or are we in the land
Speaker 1: of central planners? That's no different than China or Russia.
Speaker 1: Let's dig into that for a little bit. Like I said,
Speaker 1: this is going on, um. But basically you probably know
Speaker 1: by now, I've talked about it extensively. In in May
Speaker 1: of China kicked out all the bitcoin mining out of
Speaker 1: out of the country in bandkryptocurrencies in China, and I've
Speaker 1: done I've done a lot of content about that. Specifically,
Speaker 1: I'm not gonna go super deep into that right now,
Speaker 1: but just how it relates to what I want to
Speaker 1: talk about today. Is that. You know, I made a
Speaker 1: video if you're interested, on my YouTube channel, and it's
Speaker 1: called China's Second Fatal Mistake. So if you want the backstory,
Speaker 1: go watch the video on my My challenge to search
Speaker 1: Mark Moss on YouTube China Second Fatal Mistake. But um,
Speaker 1: basically China kicked all the bitcoin mining out. They had
Speaker 1: the majority of all the bitcoin miners in the world
Speaker 1: located in China and they kicked it out. And um,
Speaker 1: they decided that they didn't want to their people in
Speaker 1: China to be able to have access to cryptocurrencies. Um,
Speaker 1: which you know isn't super surprising in China because they
Speaker 1: decide that they don't want their people to have access
Speaker 1: to most things, including Google and Facebook and Amazon and
Speaker 1: et cetera. And so you know, they control every aspect
Speaker 1: of people's lives, including what they can and can't access,
Speaker 1: and so you know they to kick they want to
Speaker 1: say that their people can't access cryptocurrencies, fine, kick it out.
Speaker 1: Um in that video I highlighted, or maybe there was
Speaker 1: another video I highlighted. Uh, I think it was a
Speaker 1: separate video. Um. There's something known as the Mundo Fleming trilemma.
Speaker 1: And so try lima is different than a dilemma. Diallemmas
Speaker 1: you have to choose between two things. The trial limits.
Speaker 1: You have to choose between one of three things or
Speaker 1: two of three things. And uh, you have this under
Speaker 1: fleming trial. Man. So a country can't optimize or can't
Speaker 1: can't optimize their monetary policy on one side of the triangle,
Speaker 1: their interest rate on another side of the triangle, and
Speaker 1: the free flow of capital in another country on another
Speaker 1: side of the triangle. And so what happens is when
Speaker 1: they want to manipulate the monetary supply and the interest rates,
Speaker 1: then capital will either flow into the country or out
Speaker 1: of the country. And if it's bad policy, money will leave.
Speaker 1: But they don't want money to leave, so they do
Speaker 1: something what's called capital controls. It's the final stage that
Speaker 1: every empire in history goes through when they've made such
Speaker 1: disastrous policies. The money tries to leave as fast as
Speaker 1: it possibly can, and they close the closed the getaway door,
Speaker 1: right close, burn the burn the life rafts, and they
Speaker 1: shut that down. Of course, you see this happening in Venezuela, Argentina,
Speaker 1: Turkey today. People trying to get out of that as
Speaker 1: fast as they can, and so in China, they shut
Speaker 1: that off. No cryptocurrencies. Um And anyway, like I said,
Speaker 1: that's China. We also saw just now, I think yesterday
Speaker 1: Russia is now they're they're central bank in Russia. So
Speaker 1: it's not totally officially but the but the central bank
Speaker 1: is also saying. The news headline here and we pulled
Speaker 1: it up. Russia's Bank of Russia calls for a full
Speaker 1: ban on crypto. Russia's central bank suggests making crypto trading,
Speaker 1: mining and usage illegal. Owning crypto would would owning crypto
Speaker 1: would be allowed, it says, um, but they don't want
Speaker 1: you can't trade it, mine or use it. You can
Speaker 1: own it, but you can't you can't trade it, minor
Speaker 1: use it. But this is the Bank of Russia, this
Speaker 1: is the government. Um but and this came out on
Speaker 1: January Russia's Russia must ban cryptocurrencies, the country's central bank
Speaker 1: said in a report released Thursday. Um by offering an outlet,
Speaker 1: So here's what they say. By offering an outlet for
Speaker 1: people to take their money out of the national economy,
Speaker 1: they risk undermining it and making the regulator's job of
Speaker 1: maintaining optimal monetary policies harder. End quote. That's their quote.
Speaker 1: So what I just told you, which you might have
Speaker 1: been going, yeah, Mark or whatever, right, like, you know
Speaker 1: what I'm talking about. That's what they just said. By
Speaker 1: offering an outlet two people to take their money out
Speaker 1: of the national economy, they risk undermining it and making
Speaker 1: the regulator's job of maintaining optimal monetary policies harder. So
Speaker 1: what they're saying is, if you don't continue to let
Speaker 1: us steal from you and manipulate the currency and print
Speaker 1: more of it um, and you leave our system and
Speaker 1: go somewhere else, then we can't control you anymore. Then
Speaker 1: you take away our ability to create optimal, optimal monetary policies. Well,
Speaker 1: what are optimal monetary policies, Because I'm pretty sure that
Speaker 1: optimal for you is probably different than optimal for me.
Speaker 1: It's kind of like this version of utopia. No such
Speaker 1: thing as utopia. The reason why there's no such thing
Speaker 1: as utopia is because my version of utopia different than
Speaker 1: your version of utopia. One man's hell is probably another
Speaker 1: man's heaven kind of a thing. So what's optimal? Uh?
Speaker 1: The central bankers optimal policy is one that continues to
Speaker 1: get them richer. The one that continues to get their
Speaker 1: friends richer. But unfortunately, as that the sacrifice of us
Speaker 1: getting poorer. UM. To me, what would be optimal would
Speaker 1: be a free market where we can all interact freely
Speaker 1: without having a central bank and a regulator trying to
Speaker 1: enrich themselves and make us poor. They said that it, Um,
Speaker 1: if we did the outlet risks, undermining it, so undermine it.
Speaker 1: What does that mean? So, um, if we can use
Speaker 1: a different system and now there's then we've undermined it.
Speaker 1: They don't have the ability to twists. That's that's that's
Speaker 1: their words, that's what they're saying. Um. And so the
Speaker 1: the central bank says that an existing ban on using
Speaker 1: crypto for payments should be reinforced and punished should be Oh,
Speaker 1: and punishment should be introduced for buying or selling good
Speaker 1: services and labor by Russian individuals and businesses. So they
Speaker 1: want to punish you for even providing your labor. So
Speaker 1: if I said, hey, you know, I'll come over and
Speaker 1: help you paying offense or dig a hole or pack
Speaker 1: a box if you'll give me something, Nope, Nope, you
Speaker 1: can't even provide your labor in exchange for another object.
Speaker 1: That's what that's what Russia's saying. That's their words here,
Speaker 1: punishment should be introduced for your even providing your labor
Speaker 1: by Russian individuals. Which isn't surprising, right, I mean, you
Speaker 1: would expect something like that out of China or Russia,
Speaker 1: at least in the world that I grew up under.
Speaker 1: Maybe the world is a little bit different these days.
Speaker 1: And so hearing something like that from China or this
Speaker 1: is I'm reading from Russia, isn't that surprising? Growing up
Speaker 1: under the Cold War where they try to kind of
Speaker 1: control every area of your life. Um, and this again,
Speaker 1: the quote unquote optimal solution would be to ban crypto
Speaker 1: in Russia, says the bank. The optimal solution, But the
Speaker 1: optimal solution for who? For who? That's that's a central
Speaker 1: planner saying that that's a central planner saying that, right,
Speaker 1: it's not a free market. That's not the land of
Speaker 1: the free. That's Russia. Well, let's talk about what happened
Speaker 1: in the US US of A today, the land of
Speaker 1: the free becaus As I said, I was listening to this,
Speaker 1: Uh this congressmen and lawmakers, regulators um talking about this
Speaker 1: all day, and uh kind of sounds like, exactly like
Speaker 1: what I heard out of China and Russia. Not something
Speaker 1: that you wuld expect to hear from the Land of Three.
Speaker 1: So let me hear. Let me tell you what they
Speaker 1: said here led by a good old Senator Elizabeth Warren.
Speaker 1: By the way, you're listening to the markma Show. We're
Speaker 1: talking about bitcoin and cryptocurrencies and the decentralized revolution. We're
Speaker 1: talking about why governments wouldn't want you to have it,
Speaker 1: and what I want to talk to you about what
Speaker 1: the USA is actually saying, and why are they kind
Speaker 1: of sound like Russia and China, and why I think
Speaker 1: it's wrong. Um, So I'm gonna tell you exactly what
Speaker 1: they said and where I think you need to focus
Speaker 1: your perspective. So don't go away. I'll be right back,
Speaker 1: all right, Welcome back. You're listening to the Mark Moa Show,
Speaker 1: and we're talking about bitcoin and cryptocurrencies and the decentralized
Speaker 1: revolution that's happening right now before our very eyes. And
Speaker 1: before the break, I was talking about, um, China banning cryptocurrencies,
Speaker 1: and I was talking about Russia now talking about banning cryptocurrencies,
Speaker 1: and I was planning to you exactly what they said
Speaker 1: and the reason why I want to tell you that
Speaker 1: is because I want to put that into contrast in
Speaker 1: to what the United States is actually saying today and so, um,
Speaker 1: there's a big, big conversation going on led by Senator
Speaker 1: Elizabeth Warren, Democrat from Massachusetts, and they're saying that cryptocurrency,
Speaker 1: specifically bitcoin, contributes to rising energy costs and global warming
Speaker 1: because of its use of power generated by fossil fuels. Um.
Speaker 1: But uh, CEO of bit Freery, Brian Brooks, who actually
Speaker 1: used to work in the Treasury Department that o c
Speaker 1: C Comptroller of the Currency. Now he's in the private markets.
Speaker 1: But he said, quote, it's not up to the government
Speaker 1: to decide if bitcoin is important to the country's future.
Speaker 1: It's up to the market end quote. And I love
Speaker 1: that quote because that's exactly right in the Land of
Speaker 1: the Free, in a free market, is up to the
Speaker 1: market to decide what technology is to be used. It's
Speaker 1: not up to it. Now again, what I read to
Speaker 1: you from Russia, I mean that sounds like something that
Speaker 1: would come from Russia or China because they are a
Speaker 1: communist country that is a centrally planned economy meaning essentially planned,
Speaker 1: meaning a few people decide for millions or hundreds of
Speaker 1: millions of in China's case, billions of people what they
Speaker 1: should all be doing in their lives. That's not how
Speaker 1: the Nice States is supposed to work. And I suppose
Speaker 1: to THEAY is supposed to be a free market, so
Speaker 1: it's not to the government to decide. It's up to
Speaker 1: the market, as Brian brook says, and I agree with that.
Speaker 1: But let's let's dig in and see what they're really
Speaker 1: saying here. So here's a quote from a Senator Elizabeth Warren,
Speaker 1: and she says, quote the extraordinarily high energy usage and
Speaker 1: carbon emissions associated with bitcoin mining could undo much of
Speaker 1: our work to tackle the climate crisis, not to mention
Speaker 1: the harmful impacts of crypto mining has on local environments
Speaker 1: and electricity prices end quote. Um. And then she went
Speaker 1: on to say, quote, it is time for Congress and
Speaker 1: federal regulators to step up and address the serious risks
Speaker 1: that crypto poses to wait for it, wait for it,
Speaker 1: our economy and our environment end quote. So what Elizabeth
Speaker 1: Warren is saying here is the same thing that China
Speaker 1: and Russia are saying. Cryptocurrencies pose a risk to our economy.
Speaker 1: That's what she said, the economy and environment. But let's
Speaker 1: just focus on the economy. Then we'll go to the environment.
Speaker 1: So the economy piece. Um so is she saying that
Speaker 1: having an escape route basically what Russia said? That what
Speaker 1: China said, by having an escape route takes away their
Speaker 1: ability to manipulate the economy. Kind of sounds like that's
Speaker 1: what she's saying. If we if we had a party,
Speaker 1: and if I had a giant party, and I had
Speaker 1: everybody over there, and um, I was trying to control
Speaker 1: the party, I don't know, you're you're too loud, everybody
Speaker 1: do this or whatever, and everybody left. Eventually I'm the
Speaker 1: only one wh left at the party, and I have
Speaker 1: no control any over those people because they've all left there.
Speaker 1: They're all started their own party somewhere else. And that's
Speaker 1: kind of what happens with the money supply. Uh. The
Speaker 1: more of that China or Russia or in the United
Speaker 1: States wants to manipulate the money supply, people just want
Speaker 1: to leave, they want to opt out, they want to
Speaker 1: go to something else, and it undermines their ability to
Speaker 1: manage the economy because we're not using their economy anymore,
Speaker 1: which is exactly what she's saying. Um, she's been saying
Speaker 1: a lot of this, and then she said, also the environment.
Speaker 1: So that's the piece that I really want to dig
Speaker 1: into right now. Um. And so uh companies say they
Speaker 1: have powered mining farms with energy that would have otherwise
Speaker 1: gone to waste arrangements with some utility companies looking to
Speaker 1: unload trapped or stranded energy and power, uh, for example,
Speaker 1: hooking up mining units to oil welles relying on natural
Speaker 1: gas that's typically burned off as a drilling by product.
Speaker 1: So that's what is really happening. But she says, quote
Speaker 1: crypto mining facilities energy consumption is also causing a significant
Speaker 1: increase in energy costs for local and small businesses and residents.
Speaker 1: She said, all right, so that's the part that I
Speaker 1: want to talk about. So, um, this is the debate
Speaker 1: that's going on in uh behind closed walls in your
Speaker 1: government in the United States today. UM. It's uh, it's
Speaker 1: bad for the economy, and it's bad for the environment,
Speaker 1: and it's jacking up rates. And so because of that,
Speaker 1: we have to go and protect everybody, and we have
Speaker 1: to take away people's rights and control the free market.
Speaker 1: But let's take a look at what they're saying, and
Speaker 1: see if there is any truth to that at all,
Speaker 1: because I say there's not. And so, um, the first
Speaker 1: part there is that it's a it's a waste of
Speaker 1: energy or it's bad for the for the environment, because
Speaker 1: it's wasting energy, it's burning fossil fuels, as they say, right, So,
Speaker 1: I think there's a giant misconception with that right off
Speaker 1: the bat, and that is that as they kind of
Speaker 1: hinted to, that it is using electricity that most people
Speaker 1: aren't using. And so what we can see is that, Um,
Speaker 1: there was an article written by Newsweek back in December
Speaker 1: of seventeen and the World Economic Forum, good old Cloud
Speaker 1: Schwab picked it up and they said back in seventeen
Speaker 1: that by so that was two years ago now, they
Speaker 1: said that all bitcoin mining would consume all of the
Speaker 1: world's energy, all of it, all of the amount of
Speaker 1: energy that produced in the world would be consumed by bitcoin.
Speaker 1: Was but that was two years ago, did it? Well? No,
Speaker 1: As a matter of fact, the world uses over one
Speaker 1: hundred and seventy thousand, hundred seventy thousand terawa hours of
Speaker 1: energy per year and the bitcoin network uses less than
Speaker 1: zero point one of the world's energy consumption for a
Speaker 1: network of a hundred million estimated users. So that means
Speaker 1: that Bitcoin's energy uses is a rounding error. It's a
Speaker 1: rounding error as far as global energy usages. Uh. And
Speaker 1: and a bigger piece of this is that all the
Speaker 1: energy that Bitcoin is using, the rounding error, the zero
Speaker 1: point one percent, all that energy is from otherwise wasted
Speaker 1: energy sources. So let me explain to you about that.
Speaker 1: So first off, um, if you say that Bitcoin network
Speaker 1: uses too much energy, okay, but it uses less energy
Speaker 1: than Google us less energy than YouTube, Netflix, Facebook, Amazon,
Speaker 1: the cruise industry, Christmas lights, household drying machines, private jets,
Speaker 1: the zinc industry, and on and on and on. So
Speaker 1: it uses less energy than household drying. Is has household
Speaker 1: drying a waste of energy? I mean, come on, go
Speaker 1: hang up your clothes. Do you need to be on YouTube?
Speaker 1: It uses less energy than YouTube? Is YouTube a waste
Speaker 1: of energy? What about air conditioners? Is it? Uh? Do
Speaker 1: we do we need to have air conditioners? Where I
Speaker 1: live here by the beach, I don't have an air
Speaker 1: condition around my house. None of the houses have air conditioners,
Speaker 1: So why should you have one? It's a waste, right,
Speaker 1: it's pretty interesting they say that, But bitcoins energy uces
Speaker 1: is the closest to about the cruise industries energuces and
Speaker 1: maybe cruise industries are a waste of energy too, but
Speaker 1: bitcoins are used by more people and the network scales
Speaker 1: way better. So um. But the thing is is one,
Speaker 1: it's not using if the world's energy, it's zero point one.
Speaker 1: But let's talk about that zero point one for a second,
Speaker 1: because not only is it using wasted energy, it's actually helping.
Speaker 1: It's actually helping pioneer new energy technologies. It's actually helping
Speaker 1: pioneer new countries to come online. And so I would
Speaker 1: say that's a net positive, not uh not a not
Speaker 1: a not a net drag. So um, how bitcoin uses
Speaker 1: otherwise waste energy? How does it use wasted energy? Well,
Speaker 1: it's pretty simple. It's about supply and demand, right, It's
Speaker 1: supplying the man. If there's more people using something than
Speaker 1: there is, if there's more demand, then there is supply,
Speaker 1: the price goes down, and vice diversia operates the other way.
Speaker 1: You're by the way, you're listening to the Mark ma Show.
Speaker 1: We're talking about bitcoin and cryptocurrencies, the decentral revolution, we're
Speaker 1: talking specifically about China and Russia cracking down on it.
Speaker 1: Why and what the United States is saying that sounds
Speaker 1: exactly like what Russia and China is saying, and I'm
Speaker 1: proving why it's completely wrong. I'm gonna be back with more.
Speaker 1: Don't go away, all right, welcome back. You're listening to
Speaker 1: the Mark Moa Show, and we're talking about bitcoin and
Speaker 1: cryptocurrencies and the decentralized revolution, and um, I'm talking about
Speaker 1: what came out of Russia today and also has happening
Speaker 1: in the United States. And they're both saying that we
Speaker 1: need to shut down cryptocurrencies because we can't allow people
Speaker 1: to move into them because it will undermine our financial
Speaker 1: system be bad for the economy. The United States has
Speaker 1: taken a little bit of a different tact and they're
Speaker 1: saying that that, but they're also saying that it's it's
Speaker 1: bad for the environment, and so bitcoins mining specifically is
Speaker 1: bad for the environment, and so we need to be
Speaker 1: able to shut it down. And uh, I'm drawing the
Speaker 1: I I drew. I'm past that, but I drew the
Speaker 1: comparison that. Okay, it's one thing for China or Russia
Speaker 1: to say that, you know, coming from a communist country
Speaker 1: that's centrally planned and controlled, but not from a free country,
Speaker 1: not from a free market. It's pretty pretty crazy in
Speaker 1: my opinion. But even more than that, even even even
Speaker 1: arguing that supposedly we're in the land of the free
Speaker 1: and they shouldn't be controlling that. Even worse than that,
Speaker 1: their entire argument is wrong. It's all built off of
Speaker 1: a false premise. And so the premise that bitcoin waste energy.
Speaker 1: So um I was explaining how they said in in
Speaker 1: which was two years ago, bitcoin would consume more energy
Speaker 1: than the entire world, but that that didn't come to
Speaker 1: that didn't come to pass. Like every other model the
Speaker 1: government puts out, it's wrong and it actually uses less
Speaker 1: than zero point one percent, uses less than a quarter
Speaker 1: percent of one a quarter of one percent um. It's
Speaker 1: a rounding era. But even more than that, all the
Speaker 1: energy being used is actually energy that would otherwise not
Speaker 1: have been used. So an example in California in the summer,
Speaker 1: in in California, we have like a tiered electricity rate,
Speaker 1: so the more you use, the more you pay, And
Speaker 1: in the summer, at the top tier you're gonna pay
Speaker 1: about forty cents per kilo one hour. But bitcoin miners
Speaker 1: can't afford to pay forty cents per kilo one hour. Um,
Speaker 1: they need less than five cents. Really, they need less
Speaker 1: than three cents. So they can't compete here. So they're
Speaker 1: not going to come set up in California and compete
Speaker 1: for our energy and which is going to drive prices
Speaker 1: up on me. They can't do it. So if it's
Speaker 1: forty cents in California, how could they find three cent power, Well,
Speaker 1: they'd have to go somewhere where it's being wasted, and
Speaker 1: so um, they would move somewhere where they have extra
Speaker 1: energies not being used. One of the areas that's being
Speaker 1: done is all throughout um Texas and Oklahoma and North
Speaker 1: Dakota in the in the Midwest, and they go where
Speaker 1: there's oil coming out of the ground, and where there's
Speaker 1: oil coming out of the ground, there's also natural gas.
Speaker 1: The problem is that most of this oil is so
Speaker 1: far so remote out in the middle of nowhere. The
Speaker 1: natural gas, it's not economical to capture it, and so
Speaker 1: it's being either vented or flared. Vented means they just
Speaker 1: let it just escape in the system. Flare it means
Speaker 1: they actually light it on fire and it kind of
Speaker 1: burns into the system. Either one arguably isn't too good
Speaker 1: for the environment to just be releasing that into the atmosphere. UM,
Speaker 1: and a's and as a waste. Right, all that energy
Speaker 1: is just being released and when it could be captured.
Speaker 1: Per the U S Energy Information Administration, they said in
Speaker 1: that Natural Gas Annual reports that one point for eight
Speaker 1: billion cubic feet of natural gas was vented or flared
Speaker 1: per day on average in the US. That's about a
Speaker 1: hundred and fifty terawatt hours of energy for the year,
Speaker 1: which is higher than the estimated total peak level of
Speaker 1: Bitcoin's annual energy usage. As a matter of fact, the
Speaker 1: global flare gas recovery potential is eight times larger than
Speaker 1: the Bitcoin networks energy usage. So we need oil that's
Speaker 1: not going away. Um, if you want your food delivered
Speaker 1: to the store, and you want your Amazon packages delivered,
Speaker 1: and you want to drive to work, we need oil.
Speaker 1: You want to fly to go see your family, you
Speaker 1: need oil that's not going away. And as natural gas
Speaker 1: is just being vented or flared, it's being wasted, it's
Speaker 1: not being captured, and it's maybe even harmful So what
Speaker 1: bitcoin mining has done is gone and captured that collected
Speaker 1: it so it's not being vented or flare anymore, and
Speaker 1: then turning it into energy. So not only is it
Speaker 1: using energy that would be wasted anyway, it's actually a
Speaker 1: net gain because instead of being vented or flared into
Speaker 1: the ecosystem, it's being captured and used. See it's not bad.
Speaker 1: It's being used and they're not competing in New York
Speaker 1: with houses and businesses or in California for energy. They're
Speaker 1: going places where it would already be wasted. And not
Speaker 1: only are they using wasted energy, they're actually helping the ecosystem.
Speaker 1: But what else, So bitcoin mining is a grid battery.
Speaker 1: So um, what, especially in California, what they want to
Speaker 1: do is they want to move us to what they
Speaker 1: call renewable energy, which is kind of a big joke.
Speaker 1: There's no such thing as renewable energy. Um, if I
Speaker 1: need a windmill, a windmill lasts for twenty years and
Speaker 1: I have to buy I have to build another windmill,
Speaker 1: I wouldn't call that renewable. That just means it just
Speaker 1: lasts a little bit longer. Same with solar panels. They
Speaker 1: last about the same time. And they have to be replaced.
Speaker 1: How renewable is that anyway? Um, But they really want
Speaker 1: us to move to wind and solar. The problem with
Speaker 1: wind and solar is their intermittent power sources, or I
Speaker 1: like to call them unreliable, because it doesn't blow all
Speaker 1: the time, and it doesn't the sun, it doesn't shine
Speaker 1: all the time, and so what happens is um. Like
Speaker 1: in Europe they're having these energy crisis is partly because
Speaker 1: they had a very low wind year, which who would
Speaker 1: have thought. Sometimes the wind changes, and so in order
Speaker 1: for window solders to ever work at all, what they
Speaker 1: have to do is they'd have to overproduce. So they'd say, um,
Speaker 1: sometimes it doesn't it's not as windy or sunny, so um,
Speaker 1: if it's less windy or less sunny, we'll only get
Speaker 1: less power. So we need to overproduce. We have to
Speaker 1: build way more windmills or way more solar than we
Speaker 1: would need. The problem is when it is windy and
Speaker 1: when it is sunny, then it's producing more power than
Speaker 1: is being used, right, so they have to over buy.
Speaker 1: So what what bitcoin mining would could do is work
Speaker 1: with those energy grids and so on days when it's
Speaker 1: super sunny or days when it's really windy and they're
Speaker 1: overproducing power in the homes in the area can't use
Speaker 1: it all. The bitcoin miners can turn on and they
Speaker 1: could use that energy. And when the when the wind
Speaker 1: drops or the sun drops and they need more energy,
Speaker 1: they just shut the bitcoin miners off. And so in
Speaker 1: that way they can make wind and solar actually more
Speaker 1: economical and could actually help us scale to more wind
Speaker 1: and solar than without it. It can help that future
Speaker 1: come without Without bitcoin mining, the other option would be
Speaker 1: to build batteries to store all that. The problem with
Speaker 1: that is the biggest battery factory in the world is
Speaker 1: the gigawat factory by Tesla. It would take them five
Speaker 1: thousand years to make enough batteries to store the energy
Speaker 1: for the United States for one one single day. Five
Speaker 1: thousand years to make enough batteries to store energy for
Speaker 1: one single day. We probably need to store energy for
Speaker 1: weeks in case we have bad weather for a few weeks,
Speaker 1: and so you can understand it's theoretically impossible to make
Speaker 1: enough storage for what we need. And so bitcoin is
Speaker 1: a way that we could easily scale into wind and
Speaker 1: solar if we still wanted to do that. We can
Speaker 1: also see other things like, for example, UM new energy sources.
Speaker 1: So for example, UM, there's a company that's oak Low
Speaker 1: that's starting to make these little mini nuclear reactors and
Speaker 1: they they want to launch these new little mini reactors.
Speaker 1: But the problem is is that, UM, how do they
Speaker 1: how do they launch that? How do they scale that?
Speaker 1: And so they're going to have to go build a
Speaker 1: a new little nuclear reactor, but in a in a
Speaker 1: new area, but there may not be enough people to
Speaker 1: use that energy that's being used at that time. And
Speaker 1: so what they can do is they can hook up
Speaker 1: bitcoin mining to use that power until there's enough homes
Speaker 1: and businesses that come in to start using a lot
Speaker 1: utilizing the power that's being made by that reactor, and
Speaker 1: then the bitcoin miners can just pack up and move.
Speaker 1: Same thing in other countries. So you have other countries
Speaker 1: that are bootstrapping and so UM. Part of the reason
Speaker 1: why in the Congo or and uh, you know South
Speaker 1: America they don't have big economy there is because there's
Speaker 1: no good electric sources or power and so they could
Speaker 1: tap into like a hydroelectric dam for example, but there's
Speaker 1: no businesses or homes to use all that power, and
Speaker 1: so there's no way for them to raise the money
Speaker 1: to justify the costs. It's like a chicken or the
Speaker 1: egg scenario. And so what they could do is they
Speaker 1: could build that um that you know, that that power
Speaker 1: plant power generation plant, hook up bitcoin mining, and automatically
Speaker 1: start making money, which justifies the cost. Then as businesses
Speaker 1: and cities are built around that new energy source and
Speaker 1: it becomes competitive, the bitcoin mining can just pack up
Speaker 1: and move somewhere else. And you see in that way,
Speaker 1: one it's it's only using like zero point one percent
Speaker 1: of the world's energy anyway, but it's only using energy
Speaker 1: that's already being wasted or not being used. When I
Speaker 1: say wasted, I mean wasted as not being used. Um,
Speaker 1: not that it's a waste of somebody's time. Like um,
Speaker 1: if I don't eat my leftovers and they go in
Speaker 1: the trash, it was wasted food, right, it wasn't used.
Speaker 1: But not only is it using such a small percentage
Speaker 1: to rounding aerror, not only is it using such a
Speaker 1: small percents rounding airror and it's not being used by
Speaker 1: any other source, it's actually doing a net good because
Speaker 1: it's helping clean up the environment. It's helping to scale
Speaker 1: wind and solar, and it can help other countries scale
Speaker 1: their own energy. So when you hear these regulators in
Speaker 1: Congress talking about trying to take away the market's ability
Speaker 1: to work on a free market, just know their entire
Speaker 1: premise is faulty. Anyway, you're listening to the Mark Moa Show.
Speaker 1: We're talking about bitcoin. We're talking about cryptocurrencies and the
Speaker 1: decentralized revolution. We're talking about the land of the Free. Um,
Speaker 1: I'll be right back with more. All right, welcome back.
Speaker 1: You're listening to the markma Show, and we're talking about
Speaker 1: bitcoin and cryptocurrencies and the decentralized revolution. And I've been
Speaker 1: talking about um, China banning cryptocurrencies and Russia bannon cryptocurrencies,
Speaker 1: and today the United States talking about the same thing,
Speaker 1: starting to sound like Russia. UM, I have confidence that
Speaker 1: it's not going to happen. And uh, I think the
Speaker 1: United States will continue to take the lead in this.
Speaker 1: I think they'll continue to flourish. That's my hope. I
Speaker 1: think you know right now we see um that you know,
Speaker 1: President Biden was on the news this week talking about
Speaker 1: dealing with Russia and the potential war going on. In
Speaker 1: the Ukraine. Obviously tensions are high with China. Maybe, just maybe, UM,
Speaker 1: the US might want to take the opposite position of
Speaker 1: Russia and China and not the same. And uh, I
Speaker 1: think it's in our economics interest. We've seen that when
Speaker 1: China kicked out all the bitcoin mining, the United States
Speaker 1: became the big beneficiary of that. Hundreds of billions of
Speaker 1: dollars of economic activity have been brought to the United States.
Speaker 1: I'm not sure how many. I'm sure tens of thousands,
Speaker 1: of not hundreds thousands of jobs have been created. And
Speaker 1: some other big news happened this week UM, and that
Speaker 1: is that UM, in order to scale these bitcoin miners,
Speaker 1: they take special computers and they use these chips inside
Speaker 1: of them, these ASIC chips. And these chips have been
Speaker 1: UM they're kind of specialty chips, and they've been manufactured
Speaker 1: by who would who would you guess China. China has
Speaker 1: been making these these chips. And so we have all
Speaker 1: these UM American companies and Canadian companies and they're buying
Speaker 1: all these Chinese chips. And we saw this week announcement
Speaker 1: from Intel. Intel, which is is you know, makes most
Speaker 1: of the chips for the PCs announced that they are
Speaker 1: going to start building bitcoin mining chips, which is pretty
Speaker 1: cool again, American, American free markets, American quality coming into
Speaker 1: the space to continue to build this out UM, it says,
Speaker 1: a market leader in computer computer chip manufacturing, Intel has
Speaker 1: already secured at least one buyer for its upcoming bitcoin
Speaker 1: mining chips, according to a statement filed with the U
Speaker 1: S Securities and Exchange Commission, and it says that they
Speaker 1: have orders placed for UM before May, as the world's
Speaker 1: biggest chip maker tiptoes into the industry. Now, remember when
Speaker 1: we talk about um new technologies, we don't want to
Speaker 1: focus on the short term price. As a matter of fact,
Speaker 1: I haven't even talked about the price today, amazingly. We
Speaker 1: want to focus on the growth of the network, and
Speaker 1: we want to focus on the development on the network. Right,
Speaker 1: So is the network growing, the amount of users, etcetera.
Speaker 1: And is the development happening on the network growing as well?
Speaker 1: And when you see a US company, the largest, the
Speaker 1: world's biggest chip maker, decide to jump into the bitcoin
Speaker 1: mining industry, it's a pretty big sign, right, instead of
Speaker 1: just small little uh specialty people the no no, no,
Speaker 1: no no. The world's biggest chip maker is now jumping
Speaker 1: into the industry. If that doesn't legitimize what is going on,
Speaker 1: then I don't know what does um. And though while
Speaker 1: I know I was talking about, you know, some of
Speaker 1: this um bitcoin mining coming under fire from the regulators,
Speaker 1: I think most of the market is probably agreeing that
Speaker 1: that's not really happening. Otherwise you wouldn't see companies like
Speaker 1: Intel jumping in and spending so much money to do that.
Speaker 1: But yeah, I think a couple of things that I
Speaker 1: think about in regards to this one. Obviously, we need
Speaker 1: to bring jobs back, we need to bring money back,
Speaker 1: We need to bring the economics back from China and
Speaker 1: the rest of the world back into the United States.
Speaker 1: So I love to see American companies jumping into that.
Speaker 1: Another thing that's kind of interesting. This article doesn't say
Speaker 1: but this is just my own, my own thinking out
Speaker 1: louds just that's all it is. Is not official. I'm
Speaker 1: just thinking it's out loud. But in the bitcoin community,
Speaker 1: we've seen the we've seen the entrance of of the military.
Speaker 1: We've seen the entrance of specifically the Space Force, and uh,
Speaker 1: the U. S. Space Force has gotten involved. And there's
Speaker 1: one person UM that is is been making a lot
Speaker 1: of noise in the space and um, he says he's
Speaker 1: been specifically put there in M I T and in
Speaker 1: the bitcoin space to figure out what is in the
Speaker 1: nation's best security interest in regard to bitcoin. And he's
Speaker 1: been suggesting that it's in the US is security interest
Speaker 1: if they were to start mining bitcoin. And he's been
Speaker 1: angling something called the hash wars, and the hash wars
Speaker 1: are a computer, so a bitcoin mining computer, if you
Speaker 1: hook it to the network, you secure the network by
Speaker 1: one by an electricity and two running the computer and
Speaker 1: it generates hashes, and those hashes is what secures the network.
Speaker 1: And he says that he thinks it's in the nations
Speaker 1: the U S nation's best security if they were to
Speaker 1: get a lead, get a headstart on on the bitcoin mining.
Speaker 1: And that's what he's kind of been encouraging and pushing.
Speaker 1: But how can the US military jump in and start
Speaker 1: mining starting into the hash war, Um, if they if
Speaker 1: we don't have US equipment right, they can't do that.
Speaker 1: And so it's interesting and again this is just my
Speaker 1: thinking out loud, but I've been watching this develop over
Speaker 1: the last six months or a year, and uh, you know,
Speaker 1: he's been pushing for this, and and he's a low
Speaker 1: level ranking person. I mean, um, so he's not obviously
Speaker 1: we don't we don't see uh general is talking about
Speaker 1: this or whatnot. But just kind of like I said,
Speaker 1: thinking out loud, Um, he's thinking about it, which means
Speaker 1: people above him are thinking about it. And Um, the
Speaker 1: US can't really do that, but now maybe they can
Speaker 1: if we have a US company making the bitcoin mining chips.
Speaker 1: Obviously the military can make them on their own, but
Speaker 1: they typically you know, form those contracts out. And so
Speaker 1: now if we have a US company making those chips,
Speaker 1: maybe that changes something. So I don't know, something to watch, um,
Speaker 1: something cool to think about. Um. And then I guess
Speaker 1: another big thing that I saw this week that was
Speaker 1: kind of making sense is that again thinking about things
Speaker 1: in terms of both UM user adoption as well as
Speaker 1: growth on the network. One thing that's been really I've
Speaker 1: been watching is what's happening down in l Salvador. If
Speaker 1: you don't know, El Salvador made bitcoin legal tender, meaning
Speaker 1: it's as good as any other money, or it's their
Speaker 1: legal money and government money. As a matter of fact,
Speaker 1: I've been working with the people down El Salvadoor. Have
Speaker 1: been down there a few times, and you can basically
Speaker 1: go buy anything anywhere in El Salvador, Starbucks or McDonald's
Speaker 1: with bitcoin. And so that's done a lot for user adoption.
Speaker 1: Millions of people have come online and it's amazing and
Speaker 1: and uh, if you're an American and you haven't really
Speaker 1: traveled down there, you maybe don't grasp this. But most
Speaker 1: people in El Salvadoor don't have bank accounts. And they
Speaker 1: don't have bank accounts because they can't afford them. They
Speaker 1: don't really have access to them. And if you don't
Speaker 1: have a bank account, with a mobile phone, with a smartphone,
Speaker 1: you're you're pretty much equal. You could learn anyone anything,
Speaker 1: meet anyone, do anything on a phone, right, So the
Speaker 1: phone is kind of the great equalizer if you have Internet,
Speaker 1: but not if you can't join the global financial system.
Speaker 1: So you know, a kid could start a Instagram account,
Speaker 1: make a Hunter grand no problem today, but not if
Speaker 1: you can't join the global financial system. You have to
Speaker 1: have access to finance system, and most El Salvadoor and
Speaker 1: people don't have that um and most merchants don't either,
Speaker 1: And so bitcoin has fixed a massive, massive problem for them,
Speaker 1: and I know a lot of people the US don't
Speaker 1: understand why there's any value to bitcoin, but the people
Speaker 1: in El salvadore A certainly do. And what we've seen
Speaker 1: continuing to develop down there. Big news this week I
Speaker 1: thought was pretty cool was El Salvadore now is is
Speaker 1: looking to back low interest rate loans that are backed
Speaker 1: by bitcoin for micro and small businesses across the country.
Speaker 1: So the way that a country grows is through their
Speaker 1: gross domestic product, and the way they do that is
Speaker 1: by businesses starting up. You need businesses, you need people working,
Speaker 1: you need to produce goods and services. The US doesn't
Speaker 1: understand that they've shipped all their jobs offshore. But El
Speaker 1: Savadore wants to start a program to give micro loans
Speaker 1: to businesses. Increased businesses, increase employment, generating new goods and
Speaker 1: services and so right now, because the banking system doesn't
Speaker 1: really work down there, um, they don't have this. Also,
Speaker 1: Al Salvador has roughly one point two million businesses in
Speaker 1: the country, roughly sixty or micro businesses or subsistence businesses.
Speaker 1: Over micro businesses are self funded via informal loans or
Speaker 1: loan sharks. Okay, so that's what they have to do
Speaker 1: for money. Um, they may pay as much as fifteen
Speaker 1: dollars a day for a hundred dollar loan, which make
Speaker 1: annual interest rates over ten thousand per cent. So how
Speaker 1: can a business grow if it doesn't have any capital,
Speaker 1: has no access to money, and any money it gets,
Speaker 1: it's gonna have to pay ten tho percent interest. Businesses
Speaker 1: can't make that. They can't and so they want to
Speaker 1: be able to give bitcoin backed loans. Again, they don't
Speaker 1: have access to banking, they don't have access to the the
Speaker 1: capital credit, and now they do with bitcoin. And now
Speaker 1: they're going to scale out bitcoin loans, which will then
Speaker 1: scale out the businesses and really increase the economic activity
Speaker 1: of what else Salvador is doing. It's amazing. I love
Speaker 1: to see it. I'm super encouraged by it. You're listening
Speaker 1: to the Mark My show. We're talking about bitcoin and
Speaker 1: cryptocurrencies and the decentralized revolution. Covered a lot of the
Speaker 1: hottest news stories of the week. Hopefully you didn't miss out.
Speaker 1: If you did, you can check me out on the
Speaker 1: I Heart podcast network and catch up on that. Uh
Speaker 1: so much going on every every week. I love being
Speaker 1: with you. Don't miss it. Thanks for listening,