WEBVTT - The Mark Moss Show Dec 27, 2021 0:00:00.040 --> 0:00:02.320 Hello, and welcome to another episode of the Mark Moa 0:00:02.480 --> 0:00:06.519 Show where we're talking about bitcoin. We're talking about cryptocurrencies, 0:00:06.559 --> 0:00:10.799 and we are talking about the decentralized revolution. Each and 0:00:10.840 --> 0:00:13.720 every week, we are coming to you bringing you what 0:00:14.080 --> 0:00:17.520 I believe to be the most important thing, that the 0:00:17.520 --> 0:00:20.720 biggest transformation in humanity. The word witnessing right now. And 0:00:20.760 --> 0:00:22.279 so you've got to understand what this you. You have 0:00:22.320 --> 0:00:24.439 to understand what bitcoin is. You have to understand what 0:00:24.560 --> 0:00:28.080 the decentralized revolution is and how it's going to change 0:00:28.120 --> 0:00:31.720 the world. I try to bring you not just the 0:00:31.760 --> 0:00:34.199 most up to date news. Um, you can go read 0:00:34.240 --> 0:00:36.440 the news yourself. Now I can bring you and I 0:00:36.440 --> 0:00:38.720 will bring you the most important pieces of the news. 0:00:38.880 --> 0:00:40.680 But more importantly than just bringing you news, I want 0:00:40.720 --> 0:00:43.680 to explain to you what's going on. We'll talk with 0:00:43.760 --> 0:00:46.400 some of the biggest names, some of the special some 0:00:46.720 --> 0:00:48.519 very special guests in the bitcoin space I'll bring to 0:00:48.560 --> 0:00:49.960 each and every time, and then I want to teach 0:00:50.000 --> 0:00:53.640 you something because there's a big learning opportunity here, and 0:00:53.640 --> 0:00:56.920 to understand what's happening with bitcoin, it takes a lot 0:00:56.960 --> 0:00:59.000 of different disciplines, It takes a lot of different skills, 0:00:59.360 --> 0:01:03.040 and I'm kind of uniquely situated to help you with 0:01:03.080 --> 0:01:05.760 this journey. You know, my my career has sort of 0:01:05.800 --> 0:01:08.520 been this jack of all trades, master of none. I 0:01:08.560 --> 0:01:13.880 have a very wide depth across multiple different disciplines, including 0:01:14.200 --> 0:01:17.400 ones that are necessary for bitcoin, including monetary history. You 0:01:17.520 --> 0:01:20.800 notice I use a lot of history because I love it. Economics, 0:01:20.840 --> 0:01:24.880 I love it, finance of course. Technology. Um, I've been 0:01:24.920 --> 0:01:28.440 in I've been in technology since their late nineties, investing 0:01:28.480 --> 0:01:32.440 into these things known as internet stocks. It was kind 0:01:32.440 --> 0:01:35.080 of funny back then, seeing at the time I remember 0:01:35.200 --> 0:01:37.840 being an investor already in My roommate quit his job 0:01:38.760 --> 0:01:41.440 and he became a day trader, day trading these things 0:01:41.520 --> 0:01:44.840 called internet stocks, and nobody knew what they were back then. Um, 0:01:45.000 --> 0:01:46.880 and we would, you know, get together talk about these things, 0:01:46.880 --> 0:01:48.800 talk to other people and know what about this one 0:01:48.800 --> 0:01:51.320 and this one and these internet stocks, and it's it's 0:01:51.360 --> 0:01:53.320 just funny because today here we are in the cryptocurrency 0:01:53.320 --> 0:01:57.400 space and it's like the same thing happening all over again. Um. 0:01:57.440 --> 0:01:59.640 But I was around at that time, and uh, it 0:01:59.720 --> 0:02:01.560 was it was a bit different back then, of course, 0:02:01.600 --> 0:02:04.840 because we didn't have the Internet yet. I mean, obviously 0:02:04.840 --> 0:02:07.440 the Internet was working, don't get me wrong. UM, but 0:02:07.560 --> 0:02:09.799 we didn't have like e trade, we didn't have robin Hood. 0:02:09.800 --> 0:02:12.280 We couldn't trade stocks from our phone. Um. And so 0:02:12.320 --> 0:02:13.840 it was a much different world back than having to 0:02:13.880 --> 0:02:16.519 call your broker and so forth. Um. And today, of course, 0:02:16.560 --> 0:02:18.520 obviously we have robin hood, we have the smartphones. We 0:02:18.520 --> 0:02:21.120 could trade cryptocurrency from our phone, So it makes it 0:02:21.200 --> 0:02:24.200 much different. But I've been around in technology. I started 0:02:24.280 --> 0:02:26.720 e commerce business in two thousand and one at the 0:02:26.760 --> 0:02:30.000 bottom of the dot com crash. So the dot com 0:02:30.080 --> 0:02:34.720 boom famously rose from really from is when it took off, 0:02:35.000 --> 0:02:37.720 when the Netscape I p O happened. As a matter 0:02:37.720 --> 0:02:39.239 of fact, let me just give you a little background 0:02:39.240 --> 0:02:41.920 on that, just to bring in from some perspective. Of course, UM, 0:02:41.960 --> 0:02:45.440 if you understand how technology cycles work, it'll better help 0:02:45.480 --> 0:02:49.680 you understand what's happening with bitcoin and cryptocurrencies overall. So, um, 0:02:49.720 --> 0:02:52.000 they all work the same, So the way that technologies 0:02:52.120 --> 0:02:54.960 rollout is always about the same, and so understanding this 0:02:55.000 --> 0:02:57.680 is very key to understand how to play this. So 0:02:57.880 --> 0:03:00.280 if we look at um, let's actually go back a 0:03:00.320 --> 0:03:02.440 little bit further. Let's go back to the early let's 0:03:02.480 --> 0:03:05.480 go back a hundred of years, more than a hundred years, 0:03:05.600 --> 0:03:07.920 and so um, one of the biggest technologies at the 0:03:07.960 --> 0:03:12.000 time was the automobile. We had the rise of oil 0:03:12.240 --> 0:03:16.320 and automobiles, and there was new technology not only the automobile, 0:03:16.440 --> 0:03:19.600 but also the assembly line. And so we saw automobile 0:03:20.000 --> 0:03:23.320 and we saw a mass production. And of course, once 0:03:23.360 --> 0:03:25.880 the first few automobiles rolled off the line, a couple 0:03:25.919 --> 0:03:28.560 of things happened. One UM, a lot of people thought 0:03:28.600 --> 0:03:30.960 they were ridiculous, and they thought they were stupid, and 0:03:30.960 --> 0:03:32.640 they thought they were a joke, and they thought they 0:03:32.639 --> 0:03:35.760 were pointless. And look at these noisy automobiles. They're noisy 0:03:36.080 --> 0:03:39.119 and they're stinky, and they're dangerous, and they're going too 0:03:39.120 --> 0:03:41.960 fast and they're gonna hurt people, and they're unnecessary because, 0:03:42.000 --> 0:03:45.640 of course, horses and buggies have worked just fine for 0:03:45.800 --> 0:03:48.280 hundreds of years. As a matter of fact, walking and 0:03:48.400 --> 0:03:52.360 horses has been the primary mode of transportation for five 0:03:52.440 --> 0:03:56.200 thousand years. Why do we need an automobile? Right, they're noisy, 0:03:56.240 --> 0:03:59.840 they're stinky, they're slow, they break down, they're expensive, they're dangerous. 0:04:00.920 --> 0:04:04.120 It's time familiar. Anytime there's a brand new technology, it's 0:04:04.120 --> 0:04:07.520 something that's called creative destruction. And so when there's something 0:04:07.600 --> 0:04:11.400 new that's created, it destroys the old way. And it's 0:04:11.400 --> 0:04:15.160 important now what happens is the entrenched people that are there, 0:04:15.600 --> 0:04:17.920 they don't like that. The buggy makers at the time, 0:04:18.279 --> 0:04:21.400 they didn't like that, right, Hey, we want to sell horses, 0:04:21.440 --> 0:04:24.039 we want to sell buggies. You don't need those stupid cars. 0:04:24.720 --> 0:04:27.080 So anyway, there's always this fight and and and that's 0:04:27.080 --> 0:04:29.080 setting the stage for what I'm about to jump into 0:04:29.160 --> 0:04:32.040 in a minute. But that was happens. But but then 0:04:32.080 --> 0:04:33.680 when the car rolled out, you know, some people saw 0:04:33.800 --> 0:04:35.760 the visionaries and they want to jump into it. And 0:04:35.760 --> 0:04:37.840 so all of a sudden people start buying these cars. 0:04:37.839 --> 0:04:41.480 And then of course the venture capitalist the investors, they 0:04:41.520 --> 0:04:44.400 came out and they saw this massive money making opportunity, 0:04:44.520 --> 0:04:47.000 of course, and so they jumped in, and they jumped in. 0:04:47.040 --> 0:04:51.479 They started building all these different automobile manufacturers, and in 0:04:51.520 --> 0:04:54.240 a very short amount of time there was over two 0:04:54.360 --> 0:04:58.680 hundred and fifty automobile manufacturers that were out in the market. 0:04:59.040 --> 0:05:01.479 But there's a problem. There was actually two problems. The 0:05:01.520 --> 0:05:04.840 first problem was that there was no market for all 0:05:04.839 --> 0:05:09.839 those automobiles, meaning there was two automobile manufacturers. Lots of 0:05:09.839 --> 0:05:11.760 people wanted to sell cars, but there weren't that many 0:05:11.760 --> 0:05:13.560 people wanting to buy cars because it was at the 0:05:13.640 --> 0:05:16.640 very beginning of this this new technology. But the second 0:05:16.640 --> 0:05:19.320 problem was that there was no infrastructure. So that means 0:05:19.320 --> 0:05:22.960 that there was no roads, there's no gas stations, there's 0:05:23.000 --> 0:05:25.520 no service centers. So even if you bought the car, 0:05:25.560 --> 0:05:27.560 what do you do with it? And so what happened 0:05:27.640 --> 0:05:31.960 is then the automobile manufacturers all went bust, and they 0:05:31.960 --> 0:05:36.040 all went bankrupt. Three remained for Chrysler GM, and then 0:05:36.080 --> 0:05:37.960 the market started to grow again. Now that didn't mean 0:05:38.000 --> 0:05:40.280 cars were done, didn't mean they were dead, but the 0:05:40.360 --> 0:05:44.000 market had to catch up. The money, the venture capitalists 0:05:44.000 --> 0:05:46.320 and the money got ahead of where the technology was, 0:05:46.400 --> 0:05:49.680 ahead of where the market was, and then eventually they 0:05:49.680 --> 0:05:51.480 all went out of business. And then eventually the market 0:05:51.480 --> 0:05:54.400 caught up. And now there's probably automobile manufacturers today. I 0:05:54.440 --> 0:05:57.320 don't know the exact number, but there's a lot. It's 0:05:57.320 --> 0:06:01.240 important to understand the technology always rolls out the same way. Now, 0:06:01.360 --> 0:06:04.640 if we're looking at bitcoin and cryptocurrencies, we can see 0:06:04.680 --> 0:06:07.440 that it rolls out very similar in the same way. 0:06:07.760 --> 0:06:10.000 Before we jump to that, let's just take a pit 0:06:10.120 --> 0:06:13.800 stop and we'll look at the Internet boom very similar. 0:06:13.839 --> 0:06:15.240 By the way, you're listening to the Mark Moa show, 0:06:15.240 --> 0:06:18.480 we're talking about bitcoin and cryptocurrencies and the decentralized revolution. 0:06:19.640 --> 0:06:23.680 Trying to give you some perspective on how technology cycles 0:06:23.720 --> 0:06:26.760 always roll out the same way. That way you can 0:06:27.480 --> 0:06:30.479 better be better position for where we're at right now 0:06:30.560 --> 0:06:32.800 in this cycle. So we talked about autobiles. Now back 0:06:32.800 --> 0:06:36.240 to the Internet. So I started talking about the Internet 0:06:36.279 --> 0:06:38.480 and want to I got caught in this little tangent, 0:06:38.520 --> 0:06:40.400 little rabbit hole, so stick with me here. So in 0:06:40.839 --> 0:06:42.839 the Internet had started, you know in the seventies and 0:06:42.839 --> 0:06:45.480 eighties with the with the government, Darbonet, etcetera. But really 0:06:45.520 --> 0:06:49.080 it was in is when the first website went live, 0:06:49.080 --> 0:06:55.280 the first WWW, and the first purchase happened online and 0:06:55.320 --> 0:06:58.400 that was for pizza Um, same as the first purchase 0:06:58.440 --> 0:07:02.000 for a bitcoin. And then is when things changed, and 0:07:02.040 --> 0:07:05.000 that's when we had the first I p O Internet 0:07:05.240 --> 0:07:08.479 Um initial public offering and it was for Netscape and 0:07:08.480 --> 0:07:11.200 it brought all the investors in all the venture capitals 0:07:11.240 --> 0:07:14.920 in similar to the automobile boom, and venture capitalists do 0:07:14.960 --> 0:07:17.000 what venture capitalists do, They start throwing a bunch of 0:07:17.000 --> 0:07:19.160 money at things, trying to create this to blow up, 0:07:19.160 --> 0:07:22.000 and I did by by the year two thousand. From 0:07:22.880 --> 0:07:25.960 two thousand, the internet boom happened and anything with dot 0:07:26.000 --> 0:07:28.840 com in its name would instantly just get hundreds of 0:07:28.840 --> 0:07:30.640 millions of dollars or millions of dollars thrown at it. 0:07:31.960 --> 0:07:34.400 And it was crazy and by the end famously you know, 0:07:34.440 --> 0:07:37.040 in we had the pets dot com, the web band 0:07:37.080 --> 0:07:38.920 dot com, and everything dot com you can imagine. But 0:07:38.920 --> 0:07:43.760 the same two problems existed that happened in the automobile boom. 0:07:43.880 --> 0:07:46.200 That was the same two things. One, there was no 0:07:46.360 --> 0:07:49.600 market for that, meaning you could buy web band dot 0:07:49.640 --> 0:07:51.320 com they could deliver your groceries, or pets dot com 0:07:51.360 --> 0:07:53.360 you could buy your pet stuff online, but there was 0:07:53.400 --> 0:07:56.080 no market. There was nobody buying anything online. As a 0:07:56.120 --> 0:07:57.680 matter of fact, by the year two thousand, less than 0:07:57.720 --> 0:08:00.600 ten percent of people had ever bought any thing online, 0:08:02.000 --> 0:08:03.720 so there was no one to buy all that stuff. 0:08:03.720 --> 0:08:07.320 The second problem was that there was no infrastructure, meaning 0:08:07.400 --> 0:08:09.600 the Internet was too slow. You couldn't you couldn't use 0:08:09.600 --> 0:08:11.280 it for all those things that they wanted to. As 0:08:11.280 --> 0:08:14.120 a matter of fact, Netlix had come out, but Netflix 0:08:14.120 --> 0:08:17.720 didn't stream movies over the net. They mailed you a 0:08:17.800 --> 0:08:20.600 DVD to watch, and so it was too slow. The 0:08:20.640 --> 0:08:23.640 infrastructure wasn't there. So all those internet businesses went out 0:08:23.640 --> 0:08:27.000 of business. Didn't mean they were wrong, just meant there early, 0:08:27.640 --> 0:08:29.080 and early is the same as wrong. So they all 0:08:29.120 --> 0:08:31.600 went out of business. A couple remained, obviously, And now today, 0:08:31.640 --> 0:08:34.000 of course we have you know, millions of websites that 0:08:34.040 --> 0:08:36.120 are out there today, and so you can see this 0:08:36.240 --> 0:08:39.160 pattern of how this works. And so we had this 0:08:39.160 --> 0:08:41.880 big boom. Now, I thought in two thousand one, that 0:08:41.880 --> 0:08:43.880 would be a grand idea to start an e commerce 0:08:43.920 --> 0:08:47.080 business at the very bottom of that market, at the crash, 0:08:47.120 --> 0:08:49.920 when nobody wanted to throw money around. Um, it was tough. 0:08:49.920 --> 0:08:51.280 It was a long road. And when I went I 0:08:51.559 --> 0:08:53.680 started selling e commerce products and I went to these 0:08:53.720 --> 0:08:55.440 companies to sell their products on my website and they 0:08:55.520 --> 0:08:57.720 laughed at me and they said, come on, Mark, no 0:08:57.760 --> 0:09:02.040 one's ever gonna buy anything online. That's where ridiculous. And 0:09:02.080 --> 0:09:05.040 I said, well I think they will, um, And of 0:09:05.040 --> 0:09:06.599 course I was right. They were wrong, But it was 0:09:06.640 --> 0:09:08.440 a long road ahead. And I heard the same thing 0:09:08.440 --> 0:09:10.480 with cryptocurrencies. Come on, Mark, that's ridiculous. No one's are 0:09:10.480 --> 0:09:12.360 gonna use it, just like no one's ever gonna take 0:09:12.360 --> 0:09:14.040 a car because we have the buggy, and no one's 0:09:14.080 --> 0:09:16.040 ever gonna use electricity because we have digital can we 0:09:16.040 --> 0:09:18.520 have candles? Right, So, same story, over and over and 0:09:18.559 --> 0:09:20.120 over again. Now I want to explain to you the 0:09:20.160 --> 0:09:21.559 West the rest of the way this rolls out, and 0:09:21.600 --> 0:09:24.320 I'm gonna apply it back to bitcoin and cryptocurrency so 0:09:24.320 --> 0:09:26.640 you can understand where're at in the cycle. Um, you're 0:09:26.640 --> 0:09:28.560 listening to the Mark Ma Show. We're talking about bitcoin 0:09:28.559 --> 0:09:31.080 and cryptocurrencies and the decentralized revolution. I'm trying to give 0:09:31.080 --> 0:09:34.160 you the perspective you need to to survive. So stick 0:09:34.200 --> 0:09:36.360 with me, all right, Welcome back. You are listening to 0:09:36.440 --> 0:09:38.480 the Mark Ma Show, and we're talking about bitcoin and 0:09:38.480 --> 0:09:42.720 cryptocurrencies and this decentralized revolution that we are witnessing right now. 0:09:43.120 --> 0:09:45.079 And I'm just zoomed out a little bit on history. 0:09:45.120 --> 0:09:47.520 We looked at the automobile technology, we looked at the 0:09:47.520 --> 0:09:51.200 Internet technology, and now we're about to use that perspective 0:09:51.240 --> 0:09:54.760 now to dig into the cryptocurrency technology, and so we 0:09:54.800 --> 0:09:57.480 saw the same thing happened. UM. Bitcoin stormed on the 0:09:57.480 --> 0:10:01.160 scene about twelve years ago, two thousand nine. UM, and 0:10:01.280 --> 0:10:03.440 bigcoin kind of grew slowly, nobody really knew what it was, 0:10:03.480 --> 0:10:05.280 kind of like the Internet in the other days. UM. 0:10:05.320 --> 0:10:07.600 Then we had the first I c O sort of 0:10:07.640 --> 0:10:09.800 like the inflection point where the Internet was the I 0:10:10.040 --> 0:10:13.080 p O night, as I said, and it brought all 0:10:13.120 --> 0:10:15.439 that venture capital money, and in UM I think it 0:10:15.520 --> 0:10:17.360 was two thousand fourteen, we had the first I c 0:10:17.559 --> 0:10:20.280 O initial coin offering, I think it was master master Coin, 0:10:20.840 --> 0:10:24.040 and then Ethereum launched after that, and then the same thing. 0:10:24.760 --> 0:10:28.200 The venture capitalists, the investors all rushed in, brought in 0:10:28.240 --> 0:10:30.559 a bunch of money, started throwing that money round everywhere 0:10:30.600 --> 0:10:33.720 they could, just like the automobile boom, just like the 0:10:33.720 --> 0:10:36.280 Internet boom. And they started trying to solve everything, just 0:10:36.320 --> 0:10:38.560 like the Internet boom. Did you know webban dot com? 0:10:38.600 --> 0:10:41.480 That's dot com? And so now we have blockchains for everything. 0:10:41.520 --> 0:10:43.800 We're gonna manage to let us on the supply chain. 0:10:44.120 --> 0:10:46.560 We're gonna sell movie tickets on the blockchain, and we're 0:10:46.600 --> 0:10:48.600 going to do supply chain management. We're gonna do everything 0:10:48.640 --> 0:10:50.319 on the blockchain. Right when you look at under the 0:10:50.360 --> 0:10:51.599 lens of what happened on the the Internet, it kind of 0:10:51.600 --> 0:10:53.960 starts to make more sense. Now they're not wrong, But 0:10:54.040 --> 0:10:58.199 the same two problems existed in the automobile boom internet boom, 0:10:58.240 --> 0:11:01.240 and today two things. One no more market there's no 0:11:01.280 --> 0:11:03.400 one around to use all that stuff right now, and 0:11:03.400 --> 0:11:06.000 too there's no infrastructure. The network is too slow, it 0:11:06.000 --> 0:11:08.960 doesn't work properly. And so what happens is they're not wrong. 0:11:09.040 --> 0:11:11.000 Eventually a lot of that stuff will be built on 0:11:11.120 --> 0:11:13.559 the network. Unfortunately, most of it's going to go bust, 0:11:13.600 --> 0:11:15.480 and then I'll have to get built later. So that's 0:11:15.520 --> 0:11:18.200 kind of how that works, um, And so I'm bringing 0:11:18.200 --> 0:11:20.960 you that perspective somebody who's lived through this. Like I said, 0:11:21.000 --> 0:11:23.080 people laughed at me, literally laughed at me. I had 0:11:23.120 --> 0:11:26.320 to spend about twenty dollars to build out this website 0:11:26.320 --> 0:11:29.079 back in two thousand one because there was no Shopify, 0:11:29.240 --> 0:11:32.360 there's no word press, and I had to hire someone 0:11:32.400 --> 0:11:33.760 to build a custom and so I spend all this 0:11:33.800 --> 0:11:35.080 money and then I went to these stores and they 0:11:35.240 --> 0:11:37.320 they laughed at me. So I know how this goes. 0:11:38.360 --> 0:11:40.240 I think it was Gandhi who said, the first day 0:11:40.320 --> 0:11:41.920 laugh at you, the first day ignore you, then they 0:11:42.000 --> 0:11:43.440 laugh at you, then they fight you, and then they 0:11:43.520 --> 0:11:46.680 join you. And so UM, using that perspective, I want 0:11:46.679 --> 0:11:49.960 to talk about something um that that's come out this week, 0:11:50.000 --> 0:11:53.040 and actually it's been happening over and over. UM bitcoin 0:11:53.600 --> 0:11:56.240 is that thing that was ignored and then they laughed 0:11:56.240 --> 0:12:00.400 at bitcoin. Now they're fighting bitcoin, and event they're gonna 0:12:00.400 --> 0:12:02.680 adopt poin and a lot of people already have started 0:12:02.679 --> 0:12:06.280 adopting bickoin. But we're continuing to see this attack on 0:12:06.400 --> 0:12:09.800 bitcoin continued to rise. And one of the guys who 0:12:09.840 --> 0:12:15.840 talks about um bitcoin very unfavorably, Steve Hankey. UM surprising 0:12:15.920 --> 0:12:20.040 that it comes from him, because Steve Hankey is an economist. 0:12:20.040 --> 0:12:22.880 He's a former advisor to the regular administration. He's also 0:12:22.920 --> 0:12:26.200 part of the Cato Institute, which is supposed to be 0:12:26.360 --> 0:12:30.920 for freedom. And I get it. Like you think something stupid, 0:12:30.960 --> 0:12:33.560 that's okay. That's your prerogative, right, Like you don't like it, 0:12:33.720 --> 0:12:35.320 do you think it's dumb, you think it's a waste 0:12:35.320 --> 0:12:38.080 of time, waste of money, whatever you think it is, 0:12:38.160 --> 0:12:42.560 that's okay, that's your prerogative. But shouldn't take away my 0:12:42.760 --> 0:12:46.319 right to do that. You you know, you don't have 0:12:46.400 --> 0:12:48.600 the right. Nobody has the right to tell me what's 0:12:48.679 --> 0:12:51.360 a waste of my time? Only I do. And so 0:12:51.400 --> 0:12:53.599 Steve Hankey, it's just funny coming from him, being that 0:12:53.640 --> 0:12:56.000 he's part of the Cato Institute talking about freedom, but 0:12:56.080 --> 0:12:58.480 yet he wants to constantly attack bitcoin and say that 0:12:58.520 --> 0:13:01.120 people shouldn't be a to use it. So I don't 0:13:01.160 --> 0:13:03.680 understand that part, but um, you know, he he continues 0:13:03.679 --> 0:13:05.280 to ramp up this rhetoric. And I want to talk 0:13:05.280 --> 0:13:08.440 about something he just talked about this week, because you 0:13:08.440 --> 0:13:10.400 need to understand this key piece. This is a key 0:13:10.400 --> 0:13:13.400 piece to economics. He's talking about bitcoin specifically, but he's 0:13:13.440 --> 0:13:16.000 talking about economics. And remember, as I said, you have 0:13:16.000 --> 0:13:17.680 to understand a bunch of differ disciplines. You have to 0:13:17.720 --> 0:13:21.920 understand history and monetary history and technology and economics. Game 0:13:21.960 --> 0:13:23.720 through economics is one of those. Let's talk about this. 0:13:23.760 --> 0:13:27.080 So he says that as on Yahoo Finance, he says, 0:13:27.160 --> 0:13:31.000 we know the price of bitcoin, but not its value. 0:13:31.600 --> 0:13:36.200 It's probably zero. M hm. We know the price but 0:13:36.280 --> 0:13:38.920 not its value, but it's probably zero. That's what Steve 0:13:38.920 --> 0:13:41.360 Hanky says, Now, remember he's an economist and former advisor 0:13:41.360 --> 0:13:44.600 to the regular administration. Right, he's he's he's an expert. 0:13:44.920 --> 0:13:48.760 I say that with air quotes. He's an expert. So, um, 0:13:48.840 --> 0:13:51.360 let's dig into this and let's see how little this 0:13:51.640 --> 0:13:56.199 expert is expert really knows and how you could understand 0:13:56.240 --> 0:13:59.360 this with just an elementary understanding of things. So let's 0:13:59.360 --> 0:14:01.240 dig into this a little b So, um, you know 0:14:01.280 --> 0:14:03.120 what happens is if you just read headlines, you don't 0:14:03.160 --> 0:14:05.360 really understand what's going on. Then people start repeating these 0:14:05.360 --> 0:14:08.400 headlines without ever really grasping the information. So let's break 0:14:08.400 --> 0:14:12.240 it down. So um, he says that bitcoin has a price, which, 0:14:12.280 --> 0:14:15.520 by the way, the price is rallying a little bit today. Um. 0:14:15.559 --> 0:14:16.959 I don't talk about the price a whole lot. I 0:14:17.000 --> 0:14:20.000 think price is a distraction. But we are rallying. We 0:14:20.080 --> 0:14:23.520 had got as high as sixty nine thousand, and then 0:14:23.560 --> 0:14:26.360 it had dropped all the way down, um, you know, 0:14:26.400 --> 0:14:31.000 into the fort range, and we're up above fifty thousand 0:14:31.080 --> 0:14:33.600 right now. So it's rallying just in time for Christmas. 0:14:33.640 --> 0:14:36.240 I guess go back to Steve Hanky and what he said. 0:14:36.800 --> 0:14:39.520 He said, we don't know its value, which is probably zero. 0:14:40.200 --> 0:14:43.120 He says that there's a difficulty deriving value for the 0:14:43.200 --> 0:14:46.760 for the for the bitcoin. Um. He says, quote, from 0:14:46.800 --> 0:14:50.000 a high theory perspective, you end up with a bitcoin 0:14:50.480 --> 0:14:53.680 that does have a price that is objective and we 0:14:53.760 --> 0:14:55.880 know what it is, which at the time it's over 0:14:56.880 --> 0:15:02.320 US dollars. But he says, we don't know it's fundamental value. 0:15:02.520 --> 0:15:07.400 And my guess is it's probably zero end quote. So 0:15:07.440 --> 0:15:08.880 what are you saying? The professor fact and I was 0:15:08.960 --> 0:15:12.880 questioned how the value of bitcoin can be derived when 0:15:12.880 --> 0:15:15.680 deciding it's a rate of exchange with national currencies such 0:15:15.720 --> 0:15:18.760 as the dollar and the pound, and he says, quote, 0:15:18.800 --> 0:15:21.280 there is no exchange rate model that would actually rationalize 0:15:21.280 --> 0:15:24.200 the bitcoin US dollar exchange rate. So he's saying that 0:15:24.240 --> 0:15:27.440 we know the price obviously, right, So fifty U s D. 0:15:28.160 --> 0:15:31.040 There's um lots of people that be willing to give 0:15:31.080 --> 0:15:34.600 you that exchange rate. As he's quoting exchange rate the 0:15:34.640 --> 0:15:37.480 amount of dollars that you've trade for the amount of bitcoin. 0:15:37.880 --> 0:15:41.400 And as a matter of fact, there's UM twenty six 0:15:41.760 --> 0:15:46.320 billion with a B six billion dollars of bitcoin traded 0:15:46.600 --> 0:15:50.120 every day. Every twenty four billion so there's billion dollars 0:15:50.160 --> 0:15:52.960 worth of volume of people that would go gladly give 0:15:53.000 --> 0:15:56.280 you fifty U S dollars for a bitcoin or a 0:15:56.280 --> 0:15:59.240 fraction thereof. Now, but but but let's dig in a 0:15:59.280 --> 0:16:01.480 little bit more so what he's saying here, Uh, And 0:16:01.520 --> 0:16:03.480 I'm gonna go back to this quote from a high 0:16:03.920 --> 0:16:08.360 theory perspective. Okay, Well, we don't live in a high 0:16:08.400 --> 0:16:11.280 theory world. We live in a real world. We live 0:16:11.280 --> 0:16:13.800 in a practical world. We live in a world of 0:16:14.000 --> 0:16:17.960 real things where I really need real goods and services, 0:16:18.000 --> 0:16:21.080 and people have to be willing to trade me those 0:16:21.120 --> 0:16:24.320 goods and services in exchange for other things. The medium 0:16:24.320 --> 0:16:28.640 of exchange. Now, um, you might be willing to trade 0:16:28.680 --> 0:16:31.680 me a thing for my labor if I come and 0:16:31.720 --> 0:16:34.640 paint defense for you. You might be willing to exchange 0:16:34.680 --> 0:16:38.240 my dollars or my pacos or my bitcoin or whatever. 0:16:38.760 --> 0:16:40.440 We live in a real world, not in a place 0:16:40.480 --> 0:16:44.520 of as he says, high theory perspective. The piece that 0:16:44.560 --> 0:16:48.480 he's also talking about is we don't know its value. Well, 0:16:49.000 --> 0:16:52.560 here is where these economists get this completely wrong. Peter 0:16:52.600 --> 0:16:54.160 Schiff is one of them. Peter Shiff is someone that 0:16:54.200 --> 0:16:56.440 i've I've respected for a really long time. He's a 0:16:56.520 --> 0:17:01.520 very smart economist, Austrian school that economy economics um very 0:17:01.560 --> 0:17:05.240 instrumental in my development a dozen years ago. But the 0:17:05.280 --> 0:17:07.480 problem is he's dug in on this thing of what's 0:17:07.480 --> 0:17:10.960 called intrinsic value. And so a lot of you listening 0:17:11.000 --> 0:17:12.600 right now might be saying, way, how bitcoin doesn't have 0:17:12.600 --> 0:17:15.200 any intrinsic value, right, And I think that's what he's 0:17:15.240 --> 0:17:17.919 saying here. There's no value. There's no intrinsic value. That's 0:17:17.920 --> 0:17:22.280 what Peter Shift says, there's no intrinsic value. But what 0:17:22.440 --> 0:17:26.800 if I told you there's no such thing as intrinsic value? 0:17:27.800 --> 0:17:30.800 What come on, Mark, you gotta be kidding me. You 0:17:30.840 --> 0:17:33.320 weren't an advisor to President Ronald Reagan. You don't know 0:17:33.320 --> 0:17:36.760 what you're talking about. Of course, there's intrinsic value. Really, 0:17:37.359 --> 0:17:39.359 what if I told you there's no such thing? And 0:17:39.400 --> 0:17:40.960 what if I could explain it to you in a 0:17:41.000 --> 0:17:43.400 way that an elementary kid could understand it? And that's 0:17:43.440 --> 0:17:44.920 exactly what I want to do. I wanna, I wanna 0:17:44.920 --> 0:17:46.639 explain it to you, And I'm gonna tell you the 0:17:46.640 --> 0:17:50.119 rest of what Hanky said, because you need to learn 0:17:50.160 --> 0:17:52.560 to look through what he's saying. And when I finished 0:17:52.600 --> 0:17:55.120 telling you the second half of what he said, it's 0:17:55.160 --> 0:17:57.240 going to make the first part of what he said 0:17:57.320 --> 0:18:00.800 look completely ridiculous. That's how crazy these people are. By 0:18:00.800 --> 0:18:02.280 the way, you're listening to the Mark Mashow, we're talking 0:18:02.320 --> 0:18:05.480 about bitcoin. If you didn't know, we're talking about bitcoin, cryptocurrencies, 0:18:05.480 --> 0:18:09.160 and the de centralized revolution. We're talking specifically about the 0:18:09.280 --> 0:18:11.800 value of bitcoin. We know the price, as Stinky Pinky says, 0:18:11.840 --> 0:18:13.320 what's the value. I'm gonna come back with that and 0:18:13.359 --> 0:18:15.600 tell you don't go away, all right, welcome back. You 0:18:15.640 --> 0:18:17.359 are listening to the Mark ma Show, and we're talking 0:18:17.400 --> 0:18:21.159 about bitcoin. We're talking about cryptocurrencies. We're talking about the 0:18:21.320 --> 0:18:25.120 de centralized revolution that's happening right now. I don't talk 0:18:25.160 --> 0:18:27.040 a lot about the price on a regular basis, as 0:18:27.040 --> 0:18:29.000 far as what the price is this minute and what 0:18:29.040 --> 0:18:31.000 I expect the price to be tomorrow. But we are 0:18:31.040 --> 0:18:32.680 talking about the price, and we're talking about the price 0:18:32.680 --> 0:18:36.600 specifically in regards to something that Steve Hankey came out 0:18:36.640 --> 0:18:38.600 and said this week, and he said, quote, we know 0:18:38.680 --> 0:18:41.760 the price of bitcoin, but not its value, and it's 0:18:41.800 --> 0:18:47.000 probably zero. Now. I would choose to ignore what this 0:18:47.040 --> 0:18:49.520 guy says. Here's someone you know, kind of well known, 0:18:49.560 --> 0:18:50.959 I guess, I mean he's the economy. He was an 0:18:50.960 --> 0:18:55.439 economist and former advisor to the Reagan administration. Well, that 0:18:55.520 --> 0:18:59.800 also means he's really old. So maybe that has something 0:18:59.840 --> 0:19:02.840 to do with his misunderstanding the bitcoin, But it's it's 0:19:02.920 --> 0:19:06.760 it's bigger than his misunderstanding bitcoin. He has a misunderstanding 0:19:06.800 --> 0:19:10.680 of what economics is, which is rich for me to 0:19:11.000 --> 0:19:13.240 say because he was advised of Reagan and I wasn't. 0:19:13.320 --> 0:19:16.560 But let's think through this in just you know, something 0:19:16.600 --> 0:19:20.000 called common sense, all right, So he says in theory 0:19:20.080 --> 0:19:22.840 in his quote, he said from a high theory perspective. 0:19:22.880 --> 0:19:24.720 But again, we don't live in a high theory perspective, right, 0:19:24.760 --> 0:19:26.240 we live in a real world. So let me let 0:19:26.280 --> 0:19:28.680 me explain to you that a elementary kid can understand 0:19:30.119 --> 0:19:34.560