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Speaker 1: Hey, everyone, welcome to another episode of the Market Disruptors Show,

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Speaker 1: and today I am sitting down with Robert Breedlove Now.

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Speaker 1: He has been writing some amazing articles that's really taken

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Speaker 1: the industry by storm, and I have been loving him

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Speaker 1: and so I can't wait to talk to him. He

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Speaker 1: is the CEO and founder of Parallax Digital. He's also

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Speaker 1: a new YouTuber as well, so you have to go

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Speaker 1: check him out on YouTube after you're done watching this video.

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Speaker 1: But Robert, thanks so much for joining us today. Thanks smart,

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Speaker 1: glad to be here. Yeah. So, um, like I said,

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Speaker 1: you know, you've been writing a bunch of really really

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Speaker 1: good articles that everybody's been talking about. I've really been

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Speaker 1: enjoying them. Um. But for a lot of people who

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Speaker 1: don't know who you are, why don't you give us

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Speaker 1: a little bit of background on kind of what you're doing. Yeah? Sure, So, Uh,

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Speaker 1: my name is Robert, the founder of Parallax Digital. Uh.

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Speaker 1: We we do a couple of things. We operate a

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Speaker 1: multi strategy crypto asset fund and then we do some

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Speaker 1: consulting in the bitcoin space. My background before crypto was

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Speaker 1: as a certified public accountant. UM did a lot of

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Speaker 1: attack strategy for high net worth individuals and investment partnerships.

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Speaker 1: And then I also have a fairly long track record

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Speaker 1: as a as a CFO for mostly companies in the

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Speaker 1: tech space, and uh, I you know, I got. I

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Speaker 1: had my first bitcoin in two thousand and fourteen. I

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Speaker 1: didn't fall down the rabbit hole though, until two thousand

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Speaker 1: and sixteen seventeen, and actually took kind of a circuitous

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Speaker 1: path because it was in studying ethereum I discovered the

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Speaker 1: concept of smart contracts and read Zambo's work that was

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Speaker 1: written in the late nineties on smart contracts. And when

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Speaker 1: I saw his his canonical example of a smart contract

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Speaker 1: as a vending machine right where it kind of has

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Speaker 1: this programmatic relationship between buyer and seller, and then he

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Speaker 1: analogizes that to the entire financial system. My realization is

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Speaker 1: it the whole finance industry is a giant smart contract

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Speaker 1: with people operating it that a lot of it will

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Speaker 1: be absorbed by dry code at some point. Um. That's

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Speaker 1: when I got heavily involved. And then I'd like to

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Speaker 1: say where my my money went. My mind followed. And

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Speaker 1: the more closely I've studied the space, the more of

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Speaker 1: a bitcoin maximalist to use the the negative term I've become.

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Speaker 1: But it's not. I think people often confuse bitcoin maximums

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Speaker 1: for people that are just have a great deal of

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Speaker 1: fanaticism about a single asset. But I think it's more

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Speaker 1: of the typical result of walking a path. Right, you're

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Speaker 1: interested in bitcoin, you look at a lot of these

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Speaker 1: other projects, and you realize that bitcoin being disruptive to

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Speaker 1: gold is the major technological advancement here. This is the major, uh,

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Speaker 1: major disruption that has such profound socioeconomic implications for the

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Speaker 1: world as you come to understand gold as still being

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Speaker 1: the base money of central banking, right, that is the

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Speaker 1: instrument that they monopolize. So it's it's in a way

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Speaker 1: that gold has always made the world go around, and now,

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Speaker 1: for the first time in in five thousand years, we

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Speaker 1: have a technology that's potentially disruptive to gold. Yeah, and

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Speaker 1: so that's what's sucked you in just kind of seeing that,

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Speaker 1: I UM to your to your point, you know, the

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Speaker 1: way I kind of look at bitcoin maximalism is, um,

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Speaker 1: I'm also a gold maximalist, and I love gold, and

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Speaker 1: I understand why central banks owned gold, and I understand

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Speaker 1: why gold was money for five thousand years. UM, are

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Speaker 1: there opportunities to invest money and make money in silver

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Speaker 1: or copper, or rhodium or platinum. Sure, but none of

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Speaker 1: those medals will ever be gold. And maybe it's right,

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Speaker 1: you see it kind of like that, I do I

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Speaker 1: and I I'd like to explain money through the first

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Speaker 1: principles Austring economic framework. Um And I'll give you the

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Speaker 1: nutshell version. But money needs to do five things. It

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Speaker 1: needs to exhibit five properties to be good money. It

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Speaker 1: needs to be divisible, it needs to be durable, it

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Speaker 1: needs to be recognizable, needs to be portable, and it

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Speaker 1: needs to be scarce. So historically, monetary medals best satisfied

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Speaker 1: the first four properties of money. And of the monetary medals,

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Speaker 1: gold was the most scarce, and that's why it was

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Speaker 1: basically naturally selected on the free market as universal money. Um.

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Speaker 1: And there's never been a tool that was better than

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Speaker 1: gold at storing value across time. And the reason is

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Speaker 1: it's because no one can compromise its supply no matter

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Speaker 1: how hard we try, no matter how much mining effort

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Speaker 1: was allocated towards its production, it tends its supply tended

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Speaker 1: to increase about two pc per year, which made it

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Speaker 1: relied upon for pricing in the marketplace and then central

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Speaker 1: banking on top of that. It was just constructed as

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Speaker 1: an institution to increase the convenience of gold, the transactional convenience, right,

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Speaker 1: because because gold is heavy, it's hard to it lacks

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Speaker 1: in the portability and divisibility functions. So paper backed by

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Speaker 1: gold actually made gold more transactional, um, more convenient for transaction.

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Speaker 1: But over time, as we all know, that redeemability of

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Speaker 1: paper into gold was revoked, culminating in the nineteen seventy

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Speaker 1: one Nixon Shock, and what we have today is just

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Speaker 1: an unclatteralized government does certificate that undergoes slow motion default

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Speaker 1: as the societies are forced to use it. Um. So,

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Speaker 1: as I argue in a lot of my work, it's

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Speaker 1: it's an institution of socialism and theft, and that I

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Speaker 1: think is at the core of many many problems that

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Speaker 1: we're seeing in the world today. Yeah, so that's what

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Speaker 1: I want to dig into today if we can, because um,

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Speaker 1: a lot of people don't maybe see the problems that

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Speaker 1: we even have with the money supply and don't recognize that,

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Speaker 1: like you just said, a lot of the problems that

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Speaker 1: we have today all go back to the money supply.

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Speaker 1: So in your last piece that you wrote a couple

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Speaker 1: of months ago, which I encourage everyone to go read,

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Speaker 1: I'll link to it in the show notes UM, it's

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Speaker 1: called Masters and Slaves of money, and you talked about

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Speaker 1: how um really and you kind of dive into the

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Speaker 1: philosophy of this, but you talk about how money and

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Speaker 1: I should say that the counterfeiting of money basically is

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Speaker 1: stealing time. It's stealing time and labor, which is then enslaving.

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Speaker 1: People tell us about that. Yeah, so we say today

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Speaker 1: it's common to say that the central bank is printing money.

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Speaker 1: But I would argue that money is a final extinguisher

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Speaker 1: of debt. So it's going to be a barre asset

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Speaker 1: that's free of counterparty risk. Right, That's like what gold is.

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Speaker 1: Whatsilver was so such that when you deliver this this

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Speaker 1: physically possessed asset, which in an accounting perspective would be

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Speaker 1: equity in that asset and zero pocent liability. Right, there's

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Speaker 1: no debt attached to it that you can satisfy and

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Speaker 1: extinguish a debt with finality. But fiat currency is not

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Speaker 1: that you always are subjected to counterparty risk in the

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Speaker 1: form of inflation in the form of currency de authorization,

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Speaker 1: like we saw in India where they just overnight turned

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Speaker 1: off the five groupie bank note. UM and to uh, well,

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Speaker 1: inflation is counterfeiting basically, it's the legal form of counterfeiting.

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Speaker 1: Counterfeiting is the illegal form of inflation. They're one and

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Speaker 1: the same. So when a central bank is quote unquote

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Speaker 1: printing money, what they're actually doing is counterfeiting currency because

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Speaker 1: they're creating something that was once redeemable for money, gold

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Speaker 1: or silver, but today has no actual backing. So this

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Speaker 1: has the effect and I argue that the the economic

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Speaker 1: dynamics of this essentially making a pyramid scheme such that

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Speaker 1: those with access to the freshly printed money can confiscate

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Speaker 1: value from those who are forced to store value in

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Speaker 1: fiat currency, which are usually the poor, people on fixed

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Speaker 1: income or dire ease. So it's a it's a system

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Speaker 1: that victimizes the most economic economically vulnerable among us. And um,

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Speaker 1: it's just really bad. Right, we had money is intended

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Speaker 1: to be this fabric of socioeconomic trust, so such that

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Speaker 1: we can interoperate with people without knowing them, right, we

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Speaker 1: can just engage in commercial transactions without needing to know

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Speaker 1: that person and invent their reputation. Um, and it's you

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Speaker 1: know something, you can sacrifice your work for today knowing

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Speaker 1: that you can redeem it for similar sacrifices from others tomorrow.

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Speaker 1: But when you implement theft directly into this trust fabric

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Speaker 1: that we call money, it corrupts the entire system. Right,

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Speaker 1: So central banks, when they're printing money, it needs to

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Speaker 1: be very clear that there's no value being added to

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Speaker 1: the economy whatsoever. Printing new slips of dollars just reallocates

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Speaker 1: the claims on private property from the bottom to the top.

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Speaker 1: It doesn't create any new wealth in the economy whatsoever.

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Speaker 1: So it's purely a mechanism for tuft. And that was

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Speaker 1: the I'd say the core aim of this piece is

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Speaker 1: to thoroughly destroy the concept of inflation. Like I'm really

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Speaker 1: really tired of intelligent people arguing with me saying that

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Speaker 1: inflation is necessary for a healthy economy. Monetary inflation and

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Speaker 1: essentially banked world is purely a mechanism for theft. Yeah, now,

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Speaker 1: you you you made a quote. You said society always

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Speaker 1: slides towards slavery when the privileged few are able to

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Speaker 1: produce money more cheaply than everyone else. I thought that

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Speaker 1: was a great quote, and it basically kind of sums

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Speaker 1: up what you're saying. But um, to the point you

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Speaker 1: just made, and people will argue, and I see these

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Speaker 1: comments on my videos all the time that and and

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Speaker 1: I guess this is what you're addressing. But people would

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Speaker 1: argue that in order for an economy to grow, the

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Speaker 1: money supply has to expand, and you're saying that's that's

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Speaker 1: not correct, that is absolutely false. Um. So there's a

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Speaker 1: few ways to think about this. One is money is

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Speaker 1: the measurement system for value. So you can analogize as

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Speaker 1: to the meter or the foot or the mile, And

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Speaker 1: if the frame of reference to which you're evaluating change

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Speaker 1: changes itself, you actually loose. It doesn't carry as much information, right,

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Speaker 1: So you don't want the ideal money supply is absolutely scarce. Right.

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Speaker 1: It's a perfect frame of reference that doesn't change no

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Speaker 1: matter how much economic activity is changing, such that it

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Speaker 1: conveys the clearest price signals. Right. You know that if

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Speaker 1: you the analogy would be could you imagine trying to

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Speaker 1: run a construction team to build a house when the

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Speaker 1: actual value of a meter or a foot change and

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Speaker 1: fluctuated every day. You couldn't coordinate. Yeah, you couldn't coordinate

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Speaker 1: human action across time. You would the house will turn

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Speaker 1: out terribly if it turned out at all. And that's

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Speaker 1: precisely what we're doing in this current system, and that

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Speaker 1: the connection to time is that, to get real first principles,

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Speaker 1: everything that we trade in society is at its base

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Speaker 1: a product of human time. That's every good that's produced,

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Speaker 1: every service that's provided, every piece of knowledge that's exchanged,

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Speaker 1: someone spent time creating it, providing it, or figuring it

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Speaker 1: out right. And if you have a monopoly on money,

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Speaker 1: which is by definition the most liquid asset in an economy,

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Speaker 1: you basically have the power and you have the power

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Speaker 1: to change its supply. You have the power to confiscate

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Speaker 1: time from all of those citizens that are forced to

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Speaker 1: use the money. Right, So I hesitated. I've thought about

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Speaker 1: this for a long time, but I hesitated to call

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Speaker 1: central banking or feed ot currency and mechanism, or an

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Speaker 1: institution of slavery. But the longer I thought about it,

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Speaker 1: there's no other accurate term for time theft, and this

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Speaker 1: is one certainly time stuff. The central banks are stealing

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Speaker 1: time from those that are that are relying on field

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Speaker 1: currency as a store value when they engage in quantity

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Speaker 1: of easing. So if I if I, if I could

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Speaker 1: break that down basically money it allows us. So I

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Speaker 1: could I could work my eight hours digging a hole

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Speaker 1: and then I get paid for that. I could decide

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Speaker 1: to work two extra hours for extra money, and I

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Speaker 1: could bank that, and then I could use that to

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Speaker 1: buy time in the future, I could use that to

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Speaker 1: buy someone else's labor. So someone else made these goods

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Speaker 1: using their time, and I can use that to buy

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Speaker 1: their time. So if the if the central bank is

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Speaker 1: creating money for free, and they're causing people to go

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Speaker 1: out and spend their time in labor to do work,

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Speaker 1: and I'm basically counterfeiting money and then buying that I'm

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Speaker 1: stealing their labor. Is that that's exactly right? Um Work

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Speaker 1: involves sacrifice, right, you have you have to engage in

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Speaker 1: trade offs going to do this activity at the exclusion

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Speaker 1: of these other activities, So you're sacrificing the opportunity costs,

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Speaker 1: so to speak. But in the current model, central banks

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Speaker 1: suffer no opportunity costs. They suffer no sacrifice necessary to

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Speaker 1: produce the money and that's there's no that negates all

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Speaker 1: assurances to its scarcity of supply. Right, That's what the

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Speaker 1: cost of gold mining was. That's why gold mining was

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Speaker 1: chosen because there was a sacrifice necessary to produce it.

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Speaker 1: It protected its supply from being diluted. Where so gold

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Speaker 1: would be the proper example of free market money. Fiat

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Speaker 1: currency is the exact opposite. Right, They produced trillions of

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Speaker 1: dollars with a near effortless key stroke. There's no cost.

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Speaker 1: And another way to think about this is it in

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Speaker 1: the long run, the marginal the market value of money

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Speaker 1: tends to converge to its marginal cost of production. So gold,

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Speaker 1: however much it costs to get it out of the ground,

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Speaker 1: it's more price is going to converge to that number

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Speaker 1: over time, like it will fluctuate in the in the

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Speaker 1: short term, but it converges that number of time. The

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Speaker 1: cost to produce fiat currency is near zero, so that

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Speaker 1: is why it's market value always historically converges to zero. People,

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Speaker 1: there is a direct incentive to print it into absolute worthlessness,

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Speaker 1: and indeed history proves that out. This isn't This isn't

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Speaker 1: a fantastical notion that we think the US dollar is

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Speaker 1: going to fail. Every fiat currency fails. Right, the most

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Speaker 1: successful fiat currency in history is the British pound. Less

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Speaker 1: than three years old. It's lost and a half percent

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Speaker 1: of its value. That's the best, that's the most successful

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Speaker 1: one to date, right, just because it's been around the longest.

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Speaker 1: But it's also lost the most. That's right, just because

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Speaker 1: it survived the longest. Um. But they all and it's

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Speaker 1: you know, it tends to go hand in hand with

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Speaker 1: what power is dominant. But here we have now we

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Speaker 1: have bitcoin. We have this this non state digital base

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Speaker 1: money that can't be inflated. Um. It maximizes the sovereignty

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Speaker 1: of its holder. It can't easily be stolen or confiscated.

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Speaker 1: So it's a real game changer for the for the

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Speaker 1: macro economy. That piece that you just said, I want

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Speaker 1: to dig in a little bit more to the philosophy,

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Speaker 1: and then I want to figure out why anybody should

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Speaker 1: even care about this, And then I want to dig

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Speaker 1: into what we should be looking at and maybe what

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Speaker 1: we should be doing to protect ourselves and even profit

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Speaker 1: from this. But before I just want to dig into

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Speaker 1: that point that you just made where it's not easy

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Speaker 1: confiscatable because It's something I've been thinking about lately, where

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Speaker 1: like kind of from the beginning of time you had

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Speaker 1: to worry about like the next village overcoming and killing

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Speaker 1: you and taking your stuff, and then eventually you had

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Speaker 1: like kingdoms and they build walls and then they would

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Speaker 1: protect you. And it fast forward till today and really

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Speaker 1: like the role of government is to protect the people. Um,

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Speaker 1: but in a future and a digital future where all

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Speaker 1: my wealth can be stored in an unconfiscatable digital asset,

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Speaker 1: nobody can steal that, And then what do I need

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Speaker 1: government for if their only role was who protect me

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Speaker 1: from the marauders coming to steal from me? So it

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Speaker 1: changes everything that's right. And you're touching on a great,

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Speaker 1: a profound topic of bitcoin here, so you're correct. Historically

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Speaker 1: government was the monopoly on violence that that prevented violence

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Speaker 1: from happening within its community, such that it could protect

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Speaker 1: property rights and property rights. People often think property is

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Speaker 1: the asset, the table, the equity, the car or whatever.

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Speaker 1: That's not what property is. Property is the exclusive relationship

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Speaker 1: between the individual and the asset right such it I

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Speaker 1: own my car. I know I can go out and

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Speaker 1: get in my car and no one else is gonna

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Speaker 1: take it for a spin. I own my house. Those

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Speaker 1: rights to property are protected by the government. But bitcoin

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Speaker 1: represents something really interesting. It's the first property right in

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Speaker 1: history that is totally agnostic to any government decision, decree, law,

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Speaker 1: And it's the only because it's independent of government, governments

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Speaker 1: can't revoke your property rights. Um. I read this the

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Speaker 1: other night. This is a quote by Karl Schmidt. Uh,

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Speaker 1: sovereign is he who can make the exception right. So

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Speaker 1: governments will honor your property rights over time, but they'll

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Speaker 1: readily make exceptions to them, like quantitative easing. All right,

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Speaker 1: that's a violation of private property rights for everyone holding dollars.

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Speaker 1: They'll do it when necessary, if it's wartime or they're bankrupt,

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Speaker 1: or they need to do this. You know, imminent domain

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Speaker 1: in the U s will confiscate your land if they

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Speaker 1: decide they want to build a pipeline through it. Um,

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Speaker 1: they'll increase property taxes on your house if if things

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Speaker 1: get dodgy or bankruptcy. So there's always been an exception

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Speaker 1: to property rights that governments have willingly leveraged to their advantage.

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Speaker 1: But bitcoin represents this almost meta property right that no

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Speaker 1: one can revoke. Right, it cannot be forcibly taken. You

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Speaker 1: could be beaten over the head of the five dollar

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Speaker 1: wrench and maybe give it up, but you still have

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Speaker 1: to voluntarily surrender it at some point. Yeah. Um, And

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Speaker 1: that's that's a total game changer, right because to your point,

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Speaker 1: the whole history of humanity has been people fighting over

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Speaker 1: the stuff, largely the money, the resources, the food. But

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Speaker 1: for the first time in history, we have this property

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Speaker 1: right that can't be violently taken. So it changes the

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Speaker 1: incentives to violence and it changes Um. It's it's disruptive

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Speaker 1: to the state business model that's built on non consensual

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Speaker 1: taxation and inflation. Right. Then they steal money to survive.

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Speaker 1: That's what the state and governments have done forever. But

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Speaker 1: now there's there's a money that forces them to compete. Yeah.

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Speaker 1: Now you mentioned a key word right there, and you

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Speaker 1: said sovereign. And when we were talking before we started recording, um,

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Speaker 1: you were talking about you're about to go live the

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Speaker 1: sovereign individual life, which is referencing a book called The

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Speaker 1: Sovereign Individual um, which is an amazing book written I

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Speaker 1: think in eighty nine that has is an amazing to read.

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Speaker 1: Everybody should read it. I'll link to in the show notes. Um,

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Speaker 1: But in your report you talked about or in that

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Speaker 1: last article you talked about sovereignty, how really the word

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Speaker 1: sovereignty had rain in it, and how it was really

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Speaker 1: for kings to be sovereign and they were reigning, but

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Speaker 1: then it was extended to the nobles, and then eventually

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Speaker 1: it was extended to the people. And how really individuals

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Speaker 1: now should be sovereign and that's something that we want.

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Speaker 1: I want to be a sovereign individual, um, And how

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Speaker 1: really we're not able to do that, but maybe bitcoin

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Speaker 1: helps us with that. Could you expand on that? Absolutely, Um,

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Speaker 1: so sovereignty refers to the like the locusts of supreme

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Speaker 1: power in the world. And another way to think about

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Speaker 1: that is if whoever is sovereign has the authority to

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Speaker 1: act as they see fit. Right, and the arc of

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Speaker 1: human history has been the gradual decentralization of sovereignty. So

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Speaker 1: we kind in the extreme example I give or is

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Speaker 1: the the Pharaohs in ancient Egypt. You had like a

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Speaker 1: couple of super sovereign individuals overseeing a bunch of slaves, right,

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Speaker 1: essentially a bunch of non sovereign citizens. Then you fast

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Speaker 1: forward to kind of a monarchical structure that has more

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Speaker 1: of a sovereign aristocracy with with a serfdom below them.

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Speaker 1: And then today in Western civilization, the cornerstone and the

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Speaker 1: bedrock of all of Western civilization is is the presupposition

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Speaker 1: that the sovereignty of the individual is superordinate to the

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Speaker 1: sovereignty of the state. So that and this is embodied

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Speaker 1: in in uh like innocent until proven guilty, habeas corpus

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Speaker 1: or right to a fair trial, freedom of speech rights,

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Speaker 1: all these things that are our social system honors this

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Speaker 1: ability of the individual to act freely in the world. Right, um,

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Speaker 1: and it's mutt. The whole thing has been moving closer

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Speaker 1: towards what I would call or what is called natural law. Right.

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Speaker 1: So natural law essentially says that this sacred power we

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Speaker 1: call sovereignty, it actually inheres within the individual. This is

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Speaker 1: not something that's given to us from government. Right. It's

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Speaker 1: not like we're born and then a government gives us

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Speaker 1: rights that we can use. It's we're all born with

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Speaker 1: right to life, to liberty, and to property right. And

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Speaker 1: as long as we honor that in one another, than

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Speaker 1: society flourishes. And if we don't, society falls, and the

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Speaker 1: history bears that out right. Uh, debasement of the monetary medium,

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Speaker 1: which again is a violation of everyone's private property rights,

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Speaker 1: a violation of their sovereignty always proceeds civilizational collapse. So

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Speaker 1: we've we've been down this road before. It's crazy to

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Speaker 1: me that history, the lessons of history haven't been learned. Um,

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Speaker 1: but we're still out here trying to print our way

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Speaker 1: out of disaster. And UM, I just think the opposite

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Speaker 1: is true. If we we maximize the sovereignty of the

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Speaker 1: individual and and minimize frictions to trade, that's how we

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Speaker 1: create the most abundance in the world. And you know,

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Speaker 1: bitcoin supports both of those. It maximizes holder sovereignty. You

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Speaker 1: don't need anyone's permission to do anything. You can do

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Speaker 1: whatever you want with your money, your own central bank

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Speaker 1: effectively if you're running your own full note, and it

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Speaker 1: minimizes all barriers like no one can stop your bitcoin transaction.

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Speaker 1: So all of these things I think support this, uh,

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Speaker 1: the sovereign individual thesis we're moving into. Yeah, you just

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Speaker 1: mentioned something, how um you think so? So it's been

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Speaker 1: tried in all these different countries, and history is full

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Speaker 1: of examples of when you take away the sovereign rights

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Speaker 1: of an individual, how the society suffers and and it's

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Speaker 1: not just history. I don't know two thirds of the

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Speaker 1: world or more living under these totalitarian type regimes and

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Speaker 1: living in extreme poverty. And then you have a couple

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Speaker 1: of countries that have brought people out of poverty, and

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Speaker 1: so we can see it around us. You said that

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Speaker 1: you think it's crazy that people don't know this or

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Speaker 1: haven't been educated in But is it crazy or is

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Speaker 1: it intentional? I You're absolutely correct. The the university curriculum

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Speaker 1: is largely influenced by the state that funds and subsidizes

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Speaker 1: a lot of it, which is again all of that

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Speaker 1: funding is intimately related to the central bank. Right. And

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Speaker 1: the extreme example of this would be an economics degree.

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Speaker 1: You can get a master's degree in economics at the

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Speaker 1: top tier IVY IVY League institution like Harvard, you will

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Speaker 1: not hear one peep of Austing economics. And Austrian economics

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Speaker 1: is the sum total of human knowledge about economics throughout

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Speaker 1: all of history up until the past two years. I mean,

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Speaker 1: there's some in advancements for the past two hundred years,

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Speaker 1: but it's been suppressed in favor of Kynesie and economics,

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Speaker 1: which is pretty much central bank propaganda. Right, it's just

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Speaker 1: their excuse for increasing the money supply and monopolizing the

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Speaker 1: money supply. Um, but it's so yeah, it's I say,

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Speaker 1: I think it's crazy, but you're right. I do think

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Speaker 1: there's an element of intentionality to it. Yeah. I recently

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Speaker 1: tweeted a quote from Henry Ford where he said, you know,

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Speaker 1: if the if the people knew how the banking system work,

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Speaker 1: would be a revolution overnight. And that was a hundred

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Speaker 1: years ago, and it's only gotten worse, and so you

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Speaker 1: think about that, and so then the inverse of that, right,

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Speaker 1: will shoot, we can't let the people know because there

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Speaker 1: will be a revolution overnight. And I think that actually

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Speaker 1: leads a lot to where we are at in the

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Speaker 1: world today. So pre COVID people, a lot of people

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Speaker 1: don't know this because the media was pretty silent, but

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Speaker 1: pre COVID there was maybe six or eight different countries

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Speaker 1: in the world with a million plus people protests seen.

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Speaker 1: Um we have now that's starting backup. We're seeing a

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Speaker 1: lot of it happening in Europe and even in the US. Obviously,

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Speaker 1: massive social unvest and it seems like everybody's mad and

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Speaker 1: everybody realizes systems not just it's rigged against them, but

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Speaker 1: they don't know why is that? Do you see that?

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Speaker 1: I agree completely, and it's popular and bitcoin circles this meme,

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Speaker 1: fix the money, fixed the world. Um. But if you

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Speaker 1: really start to evaluate money deeply and realize that it

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Speaker 1: shapes the world for us, right, I think Charlie Munger said, like,

429
00:25:37,880 --> 00:25:40,320
Speaker 1: show me the incidentives and I'll show you the outcome. Right,

430
00:25:41,119 --> 00:25:45,840
Speaker 1: if you have theft integrated into money, which is intended

431
00:25:45,880 --> 00:25:49,840
Speaker 1: again intended to be the thing that you hold and

432
00:25:49,920 --> 00:25:52,520
Speaker 1: have no need to trust anyone else. It's supposed to

433
00:25:52,520 --> 00:25:56,640
Speaker 1: be the trust minimized store of value. That's what gold was, right,

434
00:25:57,240 --> 00:26:00,879
Speaker 1: But now we have this form of money that's confiscated

435
00:26:00,960 --> 00:26:03,639
Speaker 1: from all the time. Right. So another way to think

436
00:26:03,680 --> 00:26:06,159
Speaker 1: about this is money as a claim on the savings

437
00:26:06,320 --> 00:26:08,960
Speaker 1: of humanity, right, all the savings in the world, in

438
00:26:09,040 --> 00:26:14,120
Speaker 1: terms of capital, services, whatever we can provide collectively a society.

439
00:26:14,160 --> 00:26:16,040
Speaker 1: Money gives you a claim on that because you can

440
00:26:16,040 --> 00:26:18,280
Speaker 1: go and spend money to get anything in the marketplace.

441
00:26:19,080 --> 00:26:24,120
Speaker 1: When that is perpetually siphoned off of it actually distorts

442
00:26:24,160 --> 00:26:29,440
Speaker 1: the incentives in the economy, right, So, and it pushes

443
00:26:29,560 --> 00:26:33,639
Speaker 1: people away from productive work and into occupations that are

444
00:26:33,720 --> 00:26:38,480
Speaker 1: much more heavily involved with rent seeking um. And one

445
00:26:38,480 --> 00:26:41,439
Speaker 1: example of this would be healthcare in the US. Uh.

446
00:26:41,480 --> 00:26:43,120
Speaker 1: There's a great website for this, by the way, what

447
00:26:43,440 --> 00:26:46,360
Speaker 1: wt of ninete dot com. But if you look at

448
00:26:46,359 --> 00:26:50,399
Speaker 1: the growth in hospital administrators versus healthcare provider since nineteen

449
00:26:50,440 --> 00:26:54,480
Speaker 1: seventy one, the administratorship has exploded relative to the number

450
00:26:54,520 --> 00:26:58,320
Speaker 1: of providers. So the bureaucracy and healthcare has exploded, but

451
00:26:58,440 --> 00:27:03,480
Speaker 1: the value add the providers hasn't. Right, so the incentives

452
00:27:03,560 --> 00:27:06,840
Speaker 1: have changed in healthcare such that it has become more

453
00:27:06,840 --> 00:27:11,040
Speaker 1: of a value extractive function versus being an additive function

454
00:27:11,160 --> 00:27:16,600
Speaker 1: economic function um. And this when your money you can't

455
00:27:16,600 --> 00:27:20,400
Speaker 1: store your work, value, time and money reliably, you are

456
00:27:20,480 --> 00:27:23,440
Speaker 1: pushed to rent seek. You're pushed to play power games

457
00:27:23,920 --> 00:27:27,040
Speaker 1: to get as near to the Fiat currenciespigket as you can. Right.

458
00:27:27,440 --> 00:27:30,000
Speaker 1: You're pushed to get your company too big to fail,

459
00:27:30,680 --> 00:27:32,240
Speaker 1: because all of a sudden, if you're too big to fail,

460
00:27:32,440 --> 00:27:35,320
Speaker 1: you just you have a perpetual free role on society.

461
00:27:35,400 --> 00:27:39,080
Speaker 1: So it it causes governments to get bigger. It causes

462
00:27:39,119 --> 00:27:42,800
Speaker 1: companies to get bigger, It eviscerates the middle class and

463
00:27:42,880 --> 00:27:48,879
Speaker 1: small businesses UM. And it just wildly distorts all the

464
00:27:48,920 --> 00:27:52,840
Speaker 1: economic incentatives that we typically rely on UM in a

465
00:27:52,920 --> 00:27:58,040
Speaker 1: free market paradigm to support our civilizational advance Right. In

466
00:27:58,080 --> 00:28:01,480
Speaker 1: a free market, everyone's competing based on their own self interests,

467
00:28:01,600 --> 00:28:05,440
Speaker 1: but they have incentives to innovate and to sell things

468
00:28:05,440 --> 00:28:08,960
Speaker 1: more cheaply. So the free market is constantly pumping out innovations,

469
00:28:09,040 --> 00:28:15,639
Speaker 1: lower prices, accurate price discovery, and central banking. Again, when

470
00:28:15,680 --> 00:28:18,480
Speaker 1: I say it's an institution of socialism, I'm not exaggerating.

471
00:28:19,119 --> 00:28:22,720
Speaker 1: In the manifesto of the Communist Party, it's Marks's fifth

472
00:28:22,800 --> 00:28:25,400
Speaker 1: measure is the central bank. That's where we get it.

473
00:28:25,400 --> 00:28:29,600
Speaker 1: It's a purely an institution of socialism. Um. It throws

474
00:28:29,640 --> 00:28:32,760
Speaker 1: all of that into disarray. Right, price discovery is completely fucked.

475
00:28:33,040 --> 00:28:34,919
Speaker 1: As we see in the stock market today. We have

476
00:28:34,920 --> 00:28:37,840
Speaker 1: stock market at all time eyes, forty million people unemployed,

477
00:28:38,200 --> 00:28:42,400
Speaker 1: innovation suffers. Just look at anything nearer the state, right,

478
00:28:42,480 --> 00:28:45,560
Speaker 1: like healthcare government UM. Or another way to think about

479
00:28:45,560 --> 00:28:48,280
Speaker 1: this is how is your customer service experience at the

480
00:28:48,360 --> 00:28:51,720
Speaker 1: d M B versus the Apple store? Right? That's that's

481
00:28:51,920 --> 00:28:55,960
Speaker 1: socialism versus capitalism basically. And then it also, as I

482
00:28:56,000 --> 00:29:00,000
Speaker 1: go into in the piece, it it incentivizes moral wickedness

483
00:29:00,080 --> 00:29:06,720
Speaker 1: us um, because inflation has this corrosive effect on people,

484
00:29:06,760 --> 00:29:08,920
Speaker 1: like even if they don't cognitively understand it, when you're

485
00:29:08,960 --> 00:29:13,080
Speaker 1: being stolen from all the time, Uh, you're you're incentivized

486
00:29:13,120 --> 00:29:15,400
Speaker 1: to deceive your customers in the short run to basically

487
00:29:15,400 --> 00:29:19,160
Speaker 1: maintain your financial integrity. And this this just radiates out

488
00:29:19,200 --> 00:29:23,320
Speaker 1: in the economy and it's uh, it's three poisonous for society.

489
00:29:23,760 --> 00:29:25,800
Speaker 1: I mean, these are all such great points that and

490
00:29:25,840 --> 00:29:28,160
Speaker 1: I would imagine that the average person who has never

491
00:29:28,200 --> 00:29:30,000
Speaker 1: really dug in this deep to think about it. And

492
00:29:30,360 --> 00:29:33,480
Speaker 1: really that's why these these subjects are are difficult because

493
00:29:33,520 --> 00:29:35,680
Speaker 1: you really have to kind of master so many levels.

494
00:29:35,680 --> 00:29:39,360
Speaker 1: And this is kind of like a philosophical debate. Um.

495
00:29:39,400 --> 00:29:41,680
Speaker 1: You know, we've obviously talked about a lot of the

496
00:29:41,680 --> 00:29:44,560
Speaker 1: problems that this creates. But where does the rubber meet

497
00:29:44,600 --> 00:29:48,520
Speaker 1: the road for the average person. So now somebody listening

498
00:29:48,600 --> 00:29:51,400
Speaker 1: might say, we'll shoot, now I understand why there's all

499
00:29:51,400 --> 00:29:53,520
Speaker 1: this social unrest around the world and in the United

500
00:29:53,560 --> 00:29:57,160
Speaker 1: States as well. Um, Okay, so the central bank is

501
00:29:57,160 --> 00:29:59,840
Speaker 1: stealing from a printing, But like, where does the rebber

502
00:29:59,880 --> 00:30:01,240
Speaker 1: meant rod? What are they gonna do about it? I mean,

503
00:30:01,320 --> 00:30:04,160
Speaker 1: should people go vote all right to be a sovereign

504
00:30:04,200 --> 00:30:06,200
Speaker 1: individual like you are and start traveling the world or

505
00:30:06,480 --> 00:30:13,200
Speaker 1: what are you seeing? Um, the first investment anyone should

506
00:30:13,240 --> 00:30:16,120
Speaker 1: make is doing what they're doing right now. If they're

507
00:30:16,120 --> 00:30:19,320
Speaker 1: watching those invest in your education invests, you know, I

508
00:30:19,400 --> 00:30:21,720
Speaker 1: think critically for yourself, like none of us have all

509
00:30:21,760 --> 00:30:25,880
Speaker 1: the answers. That's why I always strive as a student

510
00:30:25,920 --> 00:30:28,560
Speaker 1: of the market to listen to the market, to understand

511
00:30:28,560 --> 00:30:30,400
Speaker 1: that the market is more intelligent than I could ever

512
00:30:30,440 --> 00:30:33,160
Speaker 1: hope to be right, it's the sum total of all

513
00:30:33,200 --> 00:30:38,400
Speaker 1: of our cognitive abilities, and the market is telling the

514
00:30:38,440 --> 00:30:41,080
Speaker 1: world right now that bitcoin is the best performing asset

515
00:30:41,080 --> 00:30:46,680
Speaker 1: in human history. Nothing has ever grown this fast. Um,

516
00:30:46,800 --> 00:30:48,680
Speaker 1: you have to pay attention to that. I don't care

517
00:30:48,680 --> 00:30:52,280
Speaker 1: how ideologically aligned against it. You are right. You could

518
00:30:52,280 --> 00:30:56,000
Speaker 1: be the most fervent believer in central banking, you still

519
00:30:56,080 --> 00:30:58,880
Speaker 1: have to pay attention to the market when it it's

520
00:30:58,880 --> 00:31:02,960
Speaker 1: spitting out the fastest asset in human industry. So definitely

521
00:31:03,080 --> 00:31:08,240
Speaker 1: education first. UM. I think bitcoin is interesting and that

522
00:31:08,360 --> 00:31:12,200
Speaker 1: when you're you're understanding as far away from it, people

523
00:31:12,240 --> 00:31:15,440
Speaker 1: tend to feel more averse to it. It just it's

524
00:31:15,440 --> 00:31:18,600
Speaker 1: so radical, it's hard to understand. But as you close

525
00:31:18,680 --> 00:31:22,120
Speaker 1: that gap through an investment in education and studying it,

526
00:31:22,880 --> 00:31:25,600
Speaker 1: you become more bullish. Actually, which is weird because I've

527
00:31:25,640 --> 00:31:27,480
Speaker 1: looked at a lot of projects in my career and

528
00:31:27,520 --> 00:31:29,280
Speaker 1: you tend to maybe get a little more excited in

529
00:31:29,320 --> 00:31:31,320
Speaker 1: the beginning and then start to see the shortcomings as

530
00:31:31,320 --> 00:31:33,880
Speaker 1: you get closer to it. A bitcoin is the opposite.

531
00:31:34,120 --> 00:31:36,280
Speaker 1: It's you're more barished in the beginning, but the closer

532
00:31:36,320 --> 00:31:40,400
Speaker 1: you get to it, the more bullish you become. I think, Um,

533
00:31:40,480 --> 00:31:45,120
Speaker 1: and then I encourage people to the path down the

534
00:31:45,200 --> 00:31:48,520
Speaker 1: rabbit hole. I think, is that question, that very fundamental question,

535
00:31:49,280 --> 00:31:51,800
Speaker 1: what is money? Like? I still ask myself this question

536
00:31:51,840 --> 00:31:56,840
Speaker 1: all the time, and it just keeps uh opening more truth,

537
00:31:57,040 --> 00:32:01,520
Speaker 1: keeps answer just keeps showing you peeling back deeper layers

538
00:32:01,520 --> 00:32:06,200
Speaker 1: of society and history and uh. When you get to

539
00:32:06,240 --> 00:32:08,960
Speaker 1: a certain point, like for me personally, I think the

540
00:32:09,040 --> 00:32:14,520
Speaker 1: realization becomes very clear that just storing your savings in bitcoin,

541
00:32:15,800 --> 00:32:18,720
Speaker 1: it gives is a huge hedge against all of this

542
00:32:19,720 --> 00:32:22,960
Speaker 1: economic calamity we're having in the world. Um. And it

543
00:32:23,080 --> 00:32:26,200
Speaker 1: maximizes your sovereignty. Right all of a sudden, you can

544
00:32:26,560 --> 00:32:29,760
Speaker 1: memorize twelve words and walk around the world with your

545
00:32:30,000 --> 00:32:31,920
Speaker 1: your bank account in your head and you don't need

546
00:32:31,960 --> 00:32:36,640
Speaker 1: to worry about all this counterparty risk. Um. And it's

547
00:32:36,720 --> 00:32:41,440
Speaker 1: it's powerful. Yeah. Now, you you talked about how um.

548
00:32:41,480 --> 00:32:43,000
Speaker 1: One of the things that you just said right there,

549
00:32:43,120 --> 00:32:44,800
Speaker 1: and we're talking about you're talking about the kind of

550
00:32:44,800 --> 00:32:47,520
Speaker 1: competition and the government and the central banks kind of

551
00:32:47,600 --> 00:32:50,480
Speaker 1: ability to capture that and counterfeit money. And so I

552
00:32:50,520 --> 00:32:52,520
Speaker 1: know one of the comments that I always see is that,

553
00:32:52,760 --> 00:32:55,280
Speaker 1: of course we need the competition, like like the Apple store,

554
00:32:55,280 --> 00:32:58,200
Speaker 1: not like the d MB, But the government hates competition.

555
00:32:58,880 --> 00:33:01,160
Speaker 1: And if the government has control of the money, which

556
00:33:01,160 --> 00:33:03,320
Speaker 1: is control of the armies, which is control of the media,

557
00:33:03,920 --> 00:33:06,080
Speaker 1: how would they ever allow someone to come in and

558
00:33:06,080 --> 00:33:09,240
Speaker 1: take that power from them? And so that's one comment

559
00:33:09,320 --> 00:33:10,640
Speaker 1: that I see all the time. So what would you

560
00:33:10,680 --> 00:33:14,959
Speaker 1: say to that? That is the hundred trillion dollar question.

561
00:33:15,720 --> 00:33:19,520
Speaker 1: If bitcoin could be stopped, it would have been stopped

562
00:33:19,560 --> 00:33:23,280
Speaker 1: by now. Maybe there was an opportunity that government's missed

563
00:33:23,320 --> 00:33:26,400
Speaker 1: in two thousand and twelve thirteen time frame, that they

564
00:33:26,400 --> 00:33:31,160
Speaker 1: could have squashed the project right with a coordinated uh,

565
00:33:31,280 --> 00:33:38,320
Speaker 1: coordinated shutdown of minors, UH, coordinated disparagement campaign, UH, you know,

566
00:33:38,360 --> 00:33:41,520
Speaker 1: cutting off all ties to the traditional uh to the

567
00:33:41,600 --> 00:33:45,160
Speaker 1: legacy financial system. Maybe there was a chance. But now

568
00:33:45,160 --> 00:33:48,040
Speaker 1: we're talking about a network that stores two hundred billion

569
00:33:48,080 --> 00:33:52,760
Speaker 1: dollars in market capitalization. It has over of the daily

570
00:33:52,880 --> 00:33:56,120
Speaker 1: liquidity and the whole crypto asset space. So if you

571
00:33:56,160 --> 00:33:59,320
Speaker 1: look at look at it through a technological lens, there's

572
00:33:59,360 --> 00:34:01,560
Speaker 1: no turning from that. Like that race has already been

573
00:34:01,640 --> 00:34:04,200
Speaker 1: run for for money. Bitcoin has won the race for

574
00:34:04,240 --> 00:34:07,560
Speaker 1: money in crypto asset world. Now it's competing with gold.

575
00:34:07,880 --> 00:34:10,600
Speaker 1: Now it's competing with the US dollar, right, That's that's

576
00:34:11,400 --> 00:34:16,600
Speaker 1: the competition is taking place now. And there's as far

577
00:34:16,640 --> 00:34:20,319
Speaker 1: as like how a government would do it, there's not

578
00:34:20,360 --> 00:34:23,000
Speaker 1: only is their case precedent. You can look at p

579
00:34:23,120 --> 00:34:27,359
Speaker 1: g P, which was went to the Supreme Court. Um,

580
00:34:27,640 --> 00:34:31,960
Speaker 1: it was people were trying to export cryptographic code. Government

581
00:34:31,960 --> 00:34:35,440
Speaker 1: was trying to classify it as munitions basically to protect

582
00:34:35,440 --> 00:34:38,839
Speaker 1: to prevent it from being exported. But they it's open

583
00:34:38,840 --> 00:34:41,640
Speaker 1: source code. So when they printed it, the whole thing,

584
00:34:41,760 --> 00:34:44,200
Speaker 1: the whole software module on paper and put it on

585
00:34:44,400 --> 00:34:47,680
Speaker 1: the desk. It was protected in the freedom of speech rights,

586
00:34:48,520 --> 00:34:50,759
Speaker 1: uh for the Supreme Court here in the US. So

587
00:34:51,320 --> 00:34:54,920
Speaker 1: bitcoin falls under that case law. So there's a big

588
00:34:55,160 --> 00:34:58,040
Speaker 1: uptill battle. If the government wants to outlaw a bitcoin,

589
00:34:59,040 --> 00:35:02,319
Speaker 1: you would have to end the First Amendment. You have

590
00:35:02,400 --> 00:35:05,520
Speaker 1: to overturn the freedom of speech because it doesn't jive.

591
00:35:06,400 --> 00:35:11,000
Speaker 1: And even if they did that, it's damn near unenforceable.

592
00:35:11,239 --> 00:35:13,719
Speaker 1: It's like, how do you stop? How do you turn

593
00:35:13,760 --> 00:35:17,280
Speaker 1: off the internet? Right? Where do you? What? Gun? What ceo?

594
00:35:17,680 --> 00:35:19,760
Speaker 1: Who do you go to to shut down the internet?

595
00:35:20,360 --> 00:35:24,680
Speaker 1: There's no single centralized target to shut down. And that's

596
00:35:24,719 --> 00:35:26,719
Speaker 1: what governments are really good at. Right, They're good at

597
00:35:26,719 --> 00:35:29,560
Speaker 1: shutting down Eagle in the nineties. Right, they know the

598
00:35:29,560 --> 00:35:32,840
Speaker 1: guy that started it. But the beauty of bitcoin is

599
00:35:32,880 --> 00:35:37,800
Speaker 1: that it's creation myth in a way that it's everywhere nowhere,

600
00:35:37,920 --> 00:35:42,920
Speaker 1: and it's just speech. So, how do you remember a

601
00:35:43,000 --> 00:35:45,920
Speaker 1: couple of years ago, Rashia was trying to shut down

602
00:35:45,960 --> 00:35:49,399
Speaker 1: I believe it was telegram, maybe a signal, maybe a signal.

603
00:35:49,400 --> 00:35:51,279
Speaker 1: I think they were trying to shut down and they

604
00:35:51,280 --> 00:35:53,360
Speaker 1: were trying to shut all the I p s and

605
00:35:53,400 --> 00:35:55,080
Speaker 1: it was like this game of whackable and they had

606
00:35:55,080 --> 00:35:58,200
Speaker 1: shut down like half the Internet, which Anazon was down,

607
00:35:58,239 --> 00:36:00,480
Speaker 1: like all these sites are down, but they still couldn't

608
00:36:00,480 --> 00:36:02,960
Speaker 1: find it. And that's not even near as decentralized. I mean,

609
00:36:02,960 --> 00:36:06,120
Speaker 1: it's not even close to decentralized like bitcoin is. And

610
00:36:06,160 --> 00:36:07,839
Speaker 1: so just look at the problems they had with that,

611
00:36:07,920 --> 00:36:10,800
Speaker 1: which is still pretty much essentialized applications as that's a

612
00:36:10,840 --> 00:36:13,400
Speaker 1: good thing. And then and then to your point, um, right,

613
00:36:13,440 --> 00:36:16,640
Speaker 1: if they can't keep drugs from becoming a billion trillion

614
00:36:16,640 --> 00:36:19,799
Speaker 1: dollar industry, and that's something physical, how are they going

615
00:36:19,840 --> 00:36:22,040
Speaker 1: to stop something digital that you just remember twelve words

616
00:36:22,040 --> 00:36:24,759
Speaker 1: in your head, that's right? And then then back to

617
00:36:24,880 --> 00:36:29,080
Speaker 1: money reshaping your perception of reality. It's like whatever value

618
00:36:29,080 --> 00:36:32,200
Speaker 1: structure you're operating in, that's what shapes how you see

619
00:36:32,239 --> 00:36:35,279
Speaker 1: the world. Right. If so, this table right now is

620
00:36:35,320 --> 00:36:38,279
Speaker 1: an accessory to me because I'm doing a podcast review.

621
00:36:38,560 --> 00:36:40,480
Speaker 1: But if I give someone a hundred dollars to jump

622
00:36:40,520 --> 00:36:43,120
Speaker 1: over the table, all of a sudden, it becomes a

623
00:36:43,200 --> 00:36:46,080
Speaker 1: barrier to them, right, So it actually changes the way

624
00:36:46,080 --> 00:36:48,560
Speaker 1: you see the world. And when you start to see that,

625
00:36:49,040 --> 00:36:54,560
Speaker 1: governments are there. They have this dawning realization that you

626
00:36:54,560 --> 00:36:56,359
Speaker 1: can't shut down bit going for all the reasons we're

627
00:36:56,400 --> 00:36:59,600
Speaker 1: just laid out. So what's the next UH wise course

628
00:36:59,600 --> 00:37:02,920
Speaker 1: of action is to just hold some of the network

629
00:37:03,680 --> 00:37:06,640
Speaker 1: as an insurance policy against its success. So if I'm

630
00:37:06,680 --> 00:37:09,640
Speaker 1: a central bank and I determine with even zero point

631
00:37:09,680 --> 00:37:14,200
Speaker 1: one percent probability that bitcoin could succeed right all this.

632
00:37:14,480 --> 00:37:18,120
Speaker 1: If that is the case, my fiduciarily responsible tactic is

633
00:37:18,160 --> 00:37:20,200
Speaker 1: to hold zero point one percent of my assets and

634
00:37:20,239 --> 00:37:25,360
Speaker 1: bitcoin as a hedge against it its success. And that

635
00:37:25,680 --> 00:37:27,760
Speaker 1: game theory just ratchets up all of a sudden, central

636
00:37:27,760 --> 00:37:30,080
Speaker 1: bank as holding zero point one percent. Well, central Bank

637
00:37:30,120 --> 00:37:32,239
Speaker 1: B says, maybe we'll hold zero point two because there's

638
00:37:32,280 --> 00:37:35,480
Speaker 1: a huge incentive to adopt this money first. Those who

639
00:37:35,480 --> 00:37:39,840
Speaker 1: adopt it first benefit disproportionately to later adopters. So Central

640
00:37:39,840 --> 00:37:42,040
Speaker 1: Bank B is holding zero point two percent. Central Bank

641
00:37:42,080 --> 00:37:44,759
Speaker 1: C says, well, we'll do zero point three. All the

642
00:37:44,800 --> 00:37:48,840
Speaker 1: while this is increasing bitcoins market capitalization. Right, they're buying

643
00:37:48,840 --> 00:37:52,480
Speaker 1: this thing as a hedge against its success, but simultaneously

644
00:37:53,239 --> 00:37:57,040
Speaker 1: UH supporting its future success. So that's where I think

645
00:37:57,040 --> 00:37:59,800
Speaker 1: when you come to see the game theoretic dimensions of bitcoin.

646
00:38:00,280 --> 00:38:04,040
Speaker 1: You really just are all in right or irresponsibly long

647
00:38:04,200 --> 00:38:08,680
Speaker 1: as robl Pal would say. Yeah, so to talk about that, so, um,

648
00:38:08,719 --> 00:38:10,440
Speaker 1: a lot of people and I see these comments I

649
00:38:10,480 --> 00:38:12,560
Speaker 1: would never buy bitcoin. I buy gold. And I see

650
00:38:12,560 --> 00:38:15,000
Speaker 1: people say I'd never buy gold, or I'd never you know,

651
00:38:15,160 --> 00:38:16,920
Speaker 1: I'd never buy bitcoin only by old or I'd never

652
00:38:16,960 --> 00:38:20,080
Speaker 1: buy goal that only buy bitcoin, And people think based

653
00:38:20,080 --> 00:38:22,000
Speaker 1: off the comments, it seems like people think they have

654
00:38:22,160 --> 00:38:25,080
Speaker 1: to find the one asset that's gonna work and put

655
00:38:25,080 --> 00:38:27,960
Speaker 1: all their money there. But as an investor and as

656
00:38:28,000 --> 00:38:31,160
Speaker 1: somebody thinking about their future, I don't think that's the

657
00:38:31,239 --> 00:38:34,480
Speaker 1: right way to think about it. Now. As a fund manager, Um,

658
00:38:34,480 --> 00:38:37,600
Speaker 1: how do you think people should think about it? Um?

659
00:38:37,640 --> 00:38:39,960
Speaker 1: Should they take Satoshi's quota of maybe just get a

660
00:38:40,000 --> 00:38:41,600
Speaker 1: little bit in case it catches on and take that

661
00:38:41,680 --> 00:38:44,560
Speaker 1: zero point one percent? How do how should they think

662
00:38:44,560 --> 00:38:48,359
Speaker 1: about dividing their assets testing it out or different types

663
00:38:48,360 --> 00:38:51,759
Speaker 1: of assets and stuff like that. Yeah, I mean this

664
00:38:51,840 --> 00:38:55,560
Speaker 1: is all expected value calculation, right, So you kind of

665
00:38:55,600 --> 00:39:00,919
Speaker 1: have to again engage in education homework study, determine what

666
00:39:01,200 --> 00:39:04,640
Speaker 1: percentage of a chance you think bitcoin has of success,

667
00:39:04,719 --> 00:39:08,279
Speaker 1: and then position size accordingly like it's it's it makes

668
00:39:08,320 --> 00:39:10,760
Speaker 1: no sense to argue, which is a very popular argument

669
00:39:10,760 --> 00:39:14,960
Speaker 1: Bitcoin is too volatile, I can't invest in it. Volatility

670
00:39:15,120 --> 00:39:18,040
Speaker 1: in your portfolio is always a function of your position size.

671
00:39:18,120 --> 00:39:20,000
Speaker 1: Like if it's too volatile, that means you want a

672
00:39:20,040 --> 00:39:23,319
Speaker 1: lower position in it, depending on your risk appetite. Right,

673
00:39:23,400 --> 00:39:27,480
Speaker 1: So I would say that you could think about it

674
00:39:27,560 --> 00:39:31,719
Speaker 1: like that. Um. And then as far as like bitcoin

675
00:39:31,880 --> 00:39:35,319
Speaker 1: versus gold, I'll just say that gold has a five

676
00:39:35,360 --> 00:39:38,480
Speaker 1: thousand year head start, right. That's a lot of Lendy effect,

677
00:39:38,520 --> 00:39:41,080
Speaker 1: a lot of trust, a lot of inertia that's not

678
00:39:41,120 --> 00:39:45,360
Speaker 1: going anywhere anytime soon. Right. It's not likely that bitcoins

679
00:39:45,400 --> 00:39:49,319
Speaker 1: is gonna take gold's monetary premium to zero overnight. It's

680
00:39:49,320 --> 00:39:51,440
Speaker 1: gonna it could possibly, but it could take a hundred

681
00:39:51,560 --> 00:39:55,000
Speaker 1: years or more. Um. I would say that you you

682
00:39:55,280 --> 00:39:59,960
Speaker 1: it's okay to hold both, right. Um. But I'll also

683
00:40:00,080 --> 00:40:04,560
Speaker 1: say that from a first principal standpoint of money, bitcoin

684
00:40:04,680 --> 00:40:08,120
Speaker 1: is superior across all five monetary properties, so that in

685
00:40:08,239 --> 00:40:12,320
Speaker 1: the long run, the economic long run, I do believe

686
00:40:12,520 --> 00:40:15,640
Speaker 1: gold as money goes to zero like it goes to

687
00:40:15,719 --> 00:40:19,200
Speaker 1: its industrial use value, and bitcoin consumes the entire market

688
00:40:19,200 --> 00:40:23,720
Speaker 1: for money, because again it's perfectly divisible, durable, recognizable, portable,

689
00:40:24,120 --> 00:40:26,520
Speaker 1: and as I argue in some of my writing, bitcoin

690
00:40:26,680 --> 00:40:30,520
Speaker 1: is the discovery of absolute scarcity. We've never had any

691
00:40:30,560 --> 00:40:34,520
Speaker 1: asset in history that we knew with perfect certainty there

692
00:40:34,560 --> 00:40:37,440
Speaker 1: would never be more than twenty one million of everything

693
00:40:37,440 --> 00:40:39,279
Speaker 1: physical in the world. This is is a function of our

694
00:40:39,280 --> 00:40:42,920
Speaker 1: time necessary to produce it. Bitcoin is the first could

695
00:40:42,960 --> 00:40:46,640
Speaker 1: be the first constant in human action, right, And that's

696
00:40:46,640 --> 00:40:48,880
Speaker 1: the big argument in Austrian economics is there are no

697
00:40:48,920 --> 00:40:52,960
Speaker 1: constants in human action. There's death and taxes, right, But

698
00:40:53,000 --> 00:40:55,279
Speaker 1: now we have this, we have this third certainty, we

699
00:40:55,320 --> 00:40:57,920
Speaker 1: have twenty one million bitcoin, and that is just it's

700
00:40:57,920 --> 00:41:00,919
Speaker 1: a game changer on every level. Um. And I think

701
00:41:00,960 --> 00:41:03,880
Speaker 1: to your point, Um, it's like the more you dig in,

702
00:41:04,080 --> 00:41:06,719
Speaker 1: the more you fall down that rabbit hole, the more

703
00:41:06,760 --> 00:41:09,520
Speaker 1: you believe, you become a believer. And so Um. To

704
00:41:09,600 --> 00:41:11,440
Speaker 1: that point that you said, as well as you know

705
00:41:11,520 --> 00:41:14,600
Speaker 1: your encouragement for people to educate themselves, I would say,

706
00:41:14,680 --> 00:41:19,680
Speaker 1: any you know, any any objection that you have, if

707
00:41:19,719 --> 00:41:22,359
Speaker 1: you spend a little bit of time researching into that,

708
00:41:22,920 --> 00:41:26,759
Speaker 1: you'll continue to find how genius it really is. Right,

709
00:41:26,920 --> 00:41:31,680
Speaker 1: absolutely true, UM And I would add that I spent

710
00:41:31,760 --> 00:41:35,560
Speaker 1: a lot of time looking for counter arguments a bitcoin like.

711
00:41:35,640 --> 00:41:38,800
Speaker 1: That's been my I've always been asking myself the HUNTERD

712
00:41:38,800 --> 00:41:40,480
Speaker 1: trilling another question, how do you disrupt it? How do

713
00:41:40,520 --> 00:41:45,360
Speaker 1: you stop it? And what I've noticed is that the

714
00:41:45,360 --> 00:41:48,560
Speaker 1: the fund is drying up very quickly. Three years ago,

715
00:41:48,920 --> 00:41:51,800
Speaker 1: it was very common for finance to just call Bitcoin

716
00:41:51,840 --> 00:41:54,120
Speaker 1: of Ponzi scheme and be done with it, right, the joke,

717
00:41:54,280 --> 00:41:57,120
Speaker 1: the Ponzi scheme. It will never work this cycle. Three,

718
00:41:57,320 --> 00:41:59,600
Speaker 1: three or four years later, no one is calling it

719
00:41:59,600 --> 00:42:02,239
Speaker 1: a Ponzi scheme. No one intelligent is calling it a

720
00:42:02,280 --> 00:42:04,680
Speaker 1: Ponzi scheme because it's not. It's the opposite of a

721
00:42:04,680 --> 00:42:08,160
Speaker 1: Ponzi scheme. So that the narratives changing quickly. And I

722
00:42:08,160 --> 00:42:11,640
Speaker 1: would say at this point it's more risky to not

723
00:42:11,719 --> 00:42:14,799
Speaker 1: pay attention and try to ignore it than to than

724
00:42:14,840 --> 00:42:18,160
Speaker 1: to invest in some education and and see the truth. Yeah,

725
00:42:18,560 --> 00:42:20,640
Speaker 1: that's so good, So we'll we'll wrap it up on

726
00:42:20,680 --> 00:42:24,239
Speaker 1: that level, because you are the master educator. UM. I

727
00:42:24,239 --> 00:42:27,680
Speaker 1: would highly recommend anybody listening to go to his blog

728
00:42:27,760 --> 00:42:30,680
Speaker 1: and read the post that he does. UM and as

729
00:42:30,680 --> 00:42:32,960
Speaker 1: well as I follow his new YouTube channel, so um,

730
00:42:33,040 --> 00:42:34,719
Speaker 1: Robert for people that do want to continue to go

731
00:42:34,800 --> 00:42:36,600
Speaker 1: down that path, where is the best way they can

732
00:42:36,760 --> 00:42:39,680
Speaker 1: kind of read that and keep up with you. Yeah,

733
00:42:39,760 --> 00:42:43,040
Speaker 1: So I'm on Twitter, which is my handle is my

734
00:42:43,160 --> 00:42:46,360
Speaker 1: last name, which is breed Love b R double E

735
00:42:46,560 --> 00:42:50,279
Speaker 1: D L o V Love twenty two. So breed Love

736
00:42:50,280 --> 00:42:54,200
Speaker 1: twenty two is my Twitter handle. I post most of

737
00:42:54,200 --> 00:42:57,719
Speaker 1: my writings there, which will be linked to medium or

738
00:42:57,840 --> 00:43:01,600
Speaker 1: dig um, and then you can check out our website.

739
00:43:01,719 --> 00:43:04,640
Speaker 1: I post um. I have a resources page of a

740
00:43:04,680 --> 00:43:06,839
Speaker 1: lot of things I like to read, and then some

741
00:43:06,920 --> 00:43:10,600
Speaker 1: things that I've written. That's a parallax digital dot io

742
00:43:11,120 --> 00:43:14,120
Speaker 1: p A R A double l a X digital dot

743
00:43:14,120 --> 00:43:18,160
Speaker 1: io and um my d m s are open, you

744
00:43:18,160 --> 00:43:19,680
Speaker 1: know you can you can hit me on the website

745
00:43:19,760 --> 00:43:24,160
Speaker 1: or on Twitter. I get messages from all over the

746
00:43:24,200 --> 00:43:26,759
Speaker 1: world all the time about all kinds of things. I

747
00:43:26,800 --> 00:43:29,479
Speaker 1: try to respond to as many as I can. And

748
00:43:29,600 --> 00:43:31,480
Speaker 1: uh and then oh yeah, the YouTube channel we just

749
00:43:31,560 --> 00:43:35,759
Speaker 1: launched today, so which is great timing for this. My

750
00:43:35,880 --> 00:43:39,120
Speaker 1: YouTube handle is breed Love twenty two, so I guess

751
00:43:39,239 --> 00:43:41,480
Speaker 1: that's the name of the channel too. Still kind of

752
00:43:41,480 --> 00:43:44,520
Speaker 1: new to this cool and I will put links to

753
00:43:44,560 --> 00:43:47,120
Speaker 1: all that in the show notes as well. So um,

754
00:43:47,120 --> 00:43:48,680
Speaker 1: with that, we'll go ahead and sign it off. Robert,

755
00:43:48,680 --> 00:43:51,279
Speaker 1: thanks so much for joining us today. Thanks Mark. This

756
00:43:51,360 --> 00:44:03,279
Speaker 1: is awesome, all right. Three four,