Speaker 1: Hello, and welcome to another episode of The Mark Moss Show,
Speaker 1: where we talk about the de centralized Revolution. We're talking
Speaker 1: about the way the world is changing looking through the
Speaker 1: lens of politics, finance, and technology. Of course, we're talking
Speaker 1: about bitcoin and cryptocurrencies and how they are driving this
Speaker 1: change as we look across through these three lenses. Now
Speaker 1: each week, I'm trying to bring you some new education
Speaker 1: so you can look at these things differently, you can
Speaker 1: understand them in better context of what's going on in
Speaker 1: the world today. Of course, I try to bring you
Speaker 1: the latest breaking news so you know what's going on.
Speaker 1: And when I can some interesting guests, you can hear
Speaker 1: some different perspectives other than just myself. And there's so
Speaker 1: much to learn. And one of the things that I
Speaker 1: try to talk about on a regular basis is trying
Speaker 1: to help you understand what's going on. And we understand
Speaker 1: things by taking complex subjects and we make them easy
Speaker 1: to understand by taking them down to what we call
Speaker 1: first principles level. They're most basic, and once we understand
Speaker 1: them on the first principles level, then we're able to
Speaker 1: understand them at a more complex level. But we're also
Speaker 1: able to start to formulate our own ideas off of them.
Speaker 1: If you don't take the time to understand things down
Speaker 1: to the base layer, first first principles, then you're never
Speaker 1: really gonna understand them. You'll never be able to think
Speaker 1: about the money, and you'll never be able to formulate
Speaker 1: your ideas. All you'll be doing is just partying headlines
Speaker 1: that you see over and over and over. Now you
Speaker 1: don't want to do that, do you, because then you'll
Speaker 1: find out just you know, repeating a headline, and you
Speaker 1: won't really know what you're saying, and then someone's gonna
Speaker 1: be smarter than you and they're gonna make you feel dumb.
Speaker 1: And you don't want that to happen. And I certainly
Speaker 1: don't want that to happen to you. So we'll try
Speaker 1: to break these things down so you have that education
Speaker 1: here on the Mark Moss Show. Now you know, I
Speaker 1: was recently last weekend, I was speaking at an event
Speaker 1: in Las Vegas called Freedom Fest. It was an awesome event.
Speaker 1: Now I go to a lot of events. I've probably
Speaker 1: going to weigh too many events recently. I'm thinking about
Speaker 1: scaling back on some of my speaking engagements. But I
Speaker 1: really like this one because it was something that I
Speaker 1: don't normally do. So I'm typically at financial conferences, which
Speaker 1: of course that's my niche. So you'll see me at
Speaker 1: financial conferences. Like a couple of last month, I was
Speaker 1: in Miami at the Rebel Capitalist Live. Of course my
Speaker 1: own events that I do, market Disruptors Live. We have
Speaker 1: tickets going on sale for next year's event, Market Disruptors
Speaker 1: Live dot com. You can check that out, um. But
Speaker 1: also you know other financial events, bitcoin events. The Bitcoin
Speaker 1: Event in Miami, it's the largest bitcoin gathering. There's about
Speaker 1: forty thousand people there, and of course yours truly. I
Speaker 1: was a speaker on the main stage. They're talking about
Speaker 1: bitcoin in Macro. I was also I worked the news
Speaker 1: desk for a couple of hours. So anyway, I'm at
Speaker 1: those types of events finance, bitcoin, et cetera. But this
Speaker 1: Freedom Fest was something that I don't normally do. It
Speaker 1: was just about freedom. That's a big word. As a
Speaker 1: matter of fact, today it's sort of a dirty word.
Speaker 1: I can't believe that I'm alive to see that some
Speaker 1: people think that freedom is like some crazy fringe right
Speaker 1: wing or something like that. Uh, freedom is dangerous, it's violence.
Speaker 1: I would agree it actually is dangerous, um to let
Speaker 1: people be free, but that's part of being free. So anyway,
Speaker 1: Freedom Fest, and it was about all types of freedom.
Speaker 1: So there was you know, quite a few um uh
Speaker 1: libertarian groups that were there. As a matter of fact,
Speaker 1: I was invited by Joe Jorgensen. Shout out to Joe
Speaker 1: if you're listening, Joe, Um. She is the I believe,
Speaker 1: the only female who's ran for president two times, and
Speaker 1: she's ran for president under the Libertarian Party. So Joe
Speaker 1: Jorgenson invited me there and we did a panel on
Speaker 1: UM titled uh the Price of Money. It was interesting
Speaker 1: panel UM. It started out really well. It kind of
Speaker 1: started going into this kind of like back and forth
Speaker 1: war against a bunch of different cryptocurrencies was one I
Speaker 1: wasn't super interested engaging in. But the initial price of
Speaker 1: money I thought was pretty interesting. And so then I
Speaker 1: got to speak to lots of people there at the
Speaker 1: Freedom Fest, and like I said, there was people from
Speaker 1: the Liberal Libertarian Party. There was people there for monetary
Speaker 1: or money freedoms um. So there was gold guys and
Speaker 1: investment guys um. And then there was health freedom. So
Speaker 1: then there was some of the big names that you
Speaker 1: might know, like Dell Big Tree or Dr Robert Malone.
Speaker 1: They're on health freedom, so all different types of freedom.
Speaker 1: One thing that Del big Tree said, if you guys
Speaker 1: don't know who Del big Tree is, you should definitely
Speaker 1: check them out. Um, he has a lot of passion.
Speaker 1: I love a guy with a lot of passion. And
Speaker 1: he was he was on a rant and he was
Speaker 1: on stage and he said, I don't care about your money.
Speaker 1: I think that was kind of a point to bitcoiner
Speaker 1: or gold I don't care about your money. I don't
Speaker 1: care or freedom of money. I don't care about freedom
Speaker 1: of guns. In your Second Amendment. He said, this is
Speaker 1: the battle of our lifetime over your body. If you
Speaker 1: don't have freedom over your own body, you have no
Speaker 1: freedom at all, which was an awesome point that he
Speaker 1: made and one that I would agree with. So it
Speaker 1: was great to do that. But anyway, back to the point.
Speaker 1: So I with on this panel and I'm walking around
Speaker 1: the conference. I'm talking to all these different people who
Speaker 1: are all from different areas of life, and they've come
Speaker 1: for all different reasons except for all about freedom. And
Speaker 1: I gotta asked a lot of questions, and um, I
Speaker 1: found that there's just this massive, um misunderstanding, but also yeah, misunderstanding.
Speaker 1: I guess lack of understanding. Maybe even is a better
Speaker 1: term of what money even is. And I know that
Speaker 1: sounds kind of basic, and don't turn me off, Ye,
Speaker 1: don't turn me off yet. I'm gonna I'm gonna back
Speaker 1: it up, right. So what is money? Well, I know
Speaker 1: what money is. I can open up my wallet, I
Speaker 1: have somewhere, I can go on my ban account, I
Speaker 1: can see how much money I have. But what is it?
Speaker 1: How is it used? What does it mean? And uh,
Speaker 1: understand that is the key to understanding what the heck
Speaker 1: is going on today in the world, with the foot
Speaker 1: of reserve and printing more money and raising interest rates
Speaker 1: and the economy shrinking and all these things. So there's
Speaker 1: that whole thing going on. Um, so you need to
Speaker 1: understand what money is to understand that, but also, um,
Speaker 1: how we could fix that, how we could have better
Speaker 1: versions of that, and what we might have in the future.
Speaker 1: And if you don't understand those basic things, then you
Speaker 1: just really don't have that first principles understand to build
Speaker 1: that on. So I thought, you know what, I'll take
Speaker 1: some of these questions and I spent hours and hours
Speaker 1: and hours talking to all these people there at the event.
Speaker 1: Let let me let me talk about this to my
Speaker 1: audience here. UM, that's you, that's you listening right now,
Speaker 1: and and we'll try to break that down. So understanding
Speaker 1: money is is difficult. I'm not gonna go all the
Speaker 1: back to the beginning, or maybe I will real quickly.
Speaker 1: Let me let me go back to the beginning, real quickly,
Speaker 1: and then we're gonna advance past that. So if you're
Speaker 1: if you're if you know what I'm talking about, stick
Speaker 1: with me. I'm gonna go through it real quickly. By
Speaker 1: the way, if you're just tuning in, you're listening to
Speaker 1: the Mark Moss Show talking about what I call the
Speaker 1: decentralized Revolution, looking at through the lens of politics, finance,
Speaker 1: and technology and as the world is changing right before
Speaker 1: our very eyes. And so what is money? Money is
Speaker 1: a medium of exchange. Money is something that communicates value. Um.
Speaker 1: It communicates um, what people want and what they don't
Speaker 1: want through something called price signals. It coordinates economies. So
Speaker 1: we could say it's a communication. We can say that
Speaker 1: it's a store of value. I don't want to get
Speaker 1: super philosophical with you here, but Basically, it's a way
Speaker 1: that I can store my value to be used at
Speaker 1: a later time. So I can store my wealth, my value,
Speaker 1: and I can use it to buy other things medium exchange.
Speaker 1: We don't need money, we don't. We don't want money.
Speaker 1: Now you might be go, what do you mean? Of
Speaker 1: course I want money, I want I want a bunch
Speaker 1: of money, as I can, Well, you don't really want money.
Speaker 1: What you want is the things that money will buy you.
Speaker 1: That's what you want. You want the things that money
Speaker 1: will buy you. So money is just that medium medium exchange.
Speaker 1: It allows us to get what we want. It also,
Speaker 1: as I said, stores that value. So for example, let's
Speaker 1: just say that I have to work for four hours
Speaker 1: a day to earn enough money to buy the food
Speaker 1: that I need to stay alive. Well, let's say that
Speaker 1: I decided to work an extra four hours. So now
Speaker 1: I'm gonna work eight hours that day. So I work
Speaker 1: an extra four hours. What do I do? How do
Speaker 1: I store that energy that was four hours that I worked? Well,
Speaker 1: I could put it. I get I get paid in money,
Speaker 1: and I hold that money. Now that four hours, that
Speaker 1: that extra that I worked, I'm storing it in money
Speaker 1: and tomorrow I could decide not to work tomorrow because
Speaker 1: I have those four hours saved up and I can
Speaker 1: buy that food that I need for the next day.
Speaker 1: That makes sense. So now that we have a very
Speaker 1: basic understanding of money, what it's used for, how it works,
Speaker 1: we also have to understand that money is emergent. So
Speaker 1: what do I mean by that? Well, again, we don't
Speaker 1: want money. What we want is that things that money
Speaker 1: will buy us. So in the beginning, we didn't have money.
Speaker 1: We just had barter. I would trade you a chicken,
Speaker 1: you trade me a goat. Right, if we're on a
Speaker 1: deserted island, you'd have coconuts. I'd go get a fish,
Speaker 1: and we trade for the things that we really want.
Speaker 1: But what happened is barter is extremely inefficient and it
Speaker 1: doesn't scale because you might not want my coconuts, my fish,
Speaker 1: my chicken, or my goat. And if you don't want
Speaker 1: any of those things, or the goat or the cow
Speaker 1: is too big, it's not divisible enough. You only want
Speaker 1: a little bit of the cow. But I only have
Speaker 1: a whole cow. And so well, if you don't take
Speaker 1: my if you won't take that, would you take this instead?
Speaker 1: And that thing becomes a medium of exchange, and eventually
Speaker 1: enough thing has become a medium exchange that one merges.
Speaker 1: I'm gonna come back with that and more than we're
Speaker 1: gonna go into talking about different types of assets, assets
Speaker 1: versus liabilities, commodity money, why we need debt for velocity,
Speaker 1: the revolution that has happened that we're witnessing right now,
Speaker 1: and what most people are missing and what you need
Speaker 1: to know in order to succeed. You listen to the
Speaker 1: Mark mo Show talking about the decentralized revolution, talking about bitcoin,
Speaker 1: cryptocurrencies and talking about the through the lens of politics, finance,
Speaker 1: and technology. And today we're talking about money and new
Speaker 1: forms of money and why you need to understand this. Um,
Speaker 1: I'll be back with that and more in a minute.
Speaker 1: Don't go away, all right, Welcome back. You are listening
Speaker 1: to the Mark Ma Show as we talk about each
Speaker 1: and every week, the decentralized revolution, the way the world
Speaker 1: is changing right before our very eyes. Of course, we
Speaker 1: look at it through the lens of politics, finance, and technology,
Speaker 1: so there's more context into what's happening today. A lot
Speaker 1: of people talking about politics, but what does it mean
Speaker 1: in the bigger context of things? That a lot of
Speaker 1: people talking about money or finance or investing, but what
Speaker 1: does that mean in the bigger context? And of course
Speaker 1: I'm bringing it all together there for you, money, finance, politics, technology,
Speaker 1: and the decentralized revolution of course being led by bitcoin,
Speaker 1: the decentralized technology. Now we were talking about before the break,
Speaker 1: talking about what is money? And more specifically, so you
Speaker 1: can understand what's going on today with inflation and the
Speaker 1: FED and how are they going to print more money?
Speaker 1: And what's happening with Europe and the bonds and all
Speaker 1: of these things, and so you have to understand them
Speaker 1: at the most basic. As I was saying, I was
Speaker 1: speaking at the Freedom FESTUS last weekend, and this one
Speaker 1: piece of information, this seemed to be the biggest stumbling
Speaker 1: box for everybody. So I thought we'd talked about that today.
Speaker 1: So we talked about what is money. I'm not gonna
Speaker 1: go back and rehash that. If you missed it, you
Speaker 1: can you can check it out on the podcast check
Speaker 1: out Mark Moss podcast. Just search that on the I
Speaker 1: Heart Radio app. Of course you can check it out
Speaker 1: on iTunes anywhere that you listen to podcasts. Oh and
Speaker 1: by the way, while you're at it check me out
Speaker 1: on social media at one Mark Moss. That's right, at
Speaker 1: the number one Mark Moss. Now, um, so what is money? So? Um,
Speaker 1: money is like this favor. It allows me to store
Speaker 1: my value so I can spend it at a later time.
Speaker 1: So we got past that. Um, what what we use
Speaker 1: as money is emergent. We used to do barter because
Speaker 1: what we really want is the food or the goods
Speaker 1: or services, and we'd barter, but then we didn't have
Speaker 1: Um if if I didn't want my chick, if I
Speaker 1: didn't want your chicken, you don't want my goat, we
Speaker 1: didn't have a deal. So we used a medium of exchange.
Speaker 1: We trade this instead, and eventually enough things became used
Speaker 1: as a medium exchange where one thing emerged as the best,
Speaker 1: and of course that was gold. Gold was money for
Speaker 1: five thousand years. You have to have the right attributes
Speaker 1: for it to be a good form of money. So,
Speaker 1: for example, it needs to be portable, It needs to
Speaker 1: be durable, It needs to be divisible and needs to
Speaker 1: be salable. It needs to be fungible. Probably gonna spend
Speaker 1: a bunch of time breaking all of those things down,
Speaker 1: but durable makes sense, right if you used bananas for money, Well,
Speaker 1: within about five days, those bananas are rotten, So it
Speaker 1: wouldn't be a very good form of money. Any type
Speaker 1: of food wouldn't be a good form of money. It's
Speaker 1: it's not durable. It also needs to be divisible, so
Speaker 1: if it was a cow, a cow wouldn't really work
Speaker 1: because you can't really break a cow down into small pieces.
Speaker 1: It also needs to be fungible, which means one is
Speaker 1: always worth one. So for example, you've seen like the oldest,
Speaker 1: dirtiest dollar bill you've ever seen that has tears in it,
Speaker 1: um is still worth the same as one brand new
Speaker 1: crisp dollar bill. They're they're fungible. And so of course, uh,
Speaker 1: animals aren't fungible, right, things like that aren't fungible. Baseball
Speaker 1: cards aren't fungible. Um, which is and then and then finally, uh,
Speaker 1: we need to be sailable, so enough people have to
Speaker 1: be willing to take it, so it could have all
Speaker 1: those attributes. But if no one's willing to take it
Speaker 1: from you within, it's not a very good form of money.
Speaker 1: Um and and uh and that that kind of sums
Speaker 1: it up. And that's why gold really fit that bill.
Speaker 1: The problem with gold is not real portable. Now I
Speaker 1: can put gold coins in my pocket and you and
Speaker 1: I can exchange. That's fine. But in the information age,
Speaker 1: gold doesn't work. I can't send you gold over zoom
Speaker 1: and so, um, it didn't work. Actually gold failed along
Speaker 1: longer before that, and it failed because it's not portable.
Speaker 1: And this is an important piece to understand. So, um gold,
Speaker 1: because it wasn't portable, I needed to pay somebody. I'm
Speaker 1: in New York, somebody's in Germany in the four hundreds,
Speaker 1: or what do we do? Well, we don't really have
Speaker 1: a deal. And what we could do is we could
Speaker 1: put a bunch of gold on ships and we could
Speaker 1: sell it across the Atlantic. But then the ship's crash
Speaker 1: and they get taken over by pirates and all that.
Speaker 1: So that's not very that's not very very good. So
Speaker 1: what did we do? How did we solve that? Um? Now,
Speaker 1: real quick? That would be what we would consider commodity money.
Speaker 1: So commodity money would typically being that there's a there's
Speaker 1: an evolution, and this is a big piece that people miss.
Speaker 1: There's an evolution to this, and so a lot of
Speaker 1: people are very quick to dismiss new things today because
Speaker 1: I don't know, it's it's not that today. So bitcoin
Speaker 1: isn't the best medium exchange day it's too volatile. Okay,
Speaker 1: well maybe that's today, But does that mean it will
Speaker 1: always be that way? Um? If we saw a little
Speaker 1: oak tree in the forest, UM, and I said, hey,
Speaker 1: imagine this oak tree is gonna be a harder foot
Speaker 1: one day, and you're like, no way, look how small
Speaker 1: it is. I'm like, but it has the attributes. It's
Speaker 1: it's an oak tree. But no, it can never be
Speaker 1: that way. But you have to understand things can evolve, UM.
Speaker 1: And so things will typically evolve starting with a collectible.
Speaker 1: Hey this is pretty cool. It's collectible. Let's collect it, right.
Speaker 1: It's a cool it's a shiny rock, it's a cool feather. Um.
Speaker 1: And then eventually things can become stores of value where
Speaker 1: if enough people collect them, then we store wealth there.
Speaker 1: And you see that with rich people today they store
Speaker 1: their wealth in um collectible cars or or paintings or
Speaker 1: things like that. UM. And then um, eventually it could
Speaker 1: evolve into a medium of exchange, but only if it
Speaker 1: has those qualities that I've given you before. Now, a
Speaker 1: Mona Lisa painting is a collectible. UM. That has become
Speaker 1: a store of value. People are putting their value into
Speaker 1: those things, but it can't really become a medium exchange
Speaker 1: because it doesn't have the money properties. It's not divisible,
Speaker 1: it's not portable, right, it makes sense, it's not fungible. Well,
Speaker 1: there's only one mona Lisa painting, um, so it's it
Speaker 1: doesn't have the in this quality, so it stops evolving there.
Speaker 1: And it's important to understand that we've had commodity money
Speaker 1: in the past, So commodity would mean that it has
Speaker 1: to be something that's useful or needed, and so gold
Speaker 1: was used for electronics, right, there was a need. You're
Speaker 1: gonna listen to people like Peter Schiff tell you that
Speaker 1: gold has intrinsic value. There's intrinsic value. Their money must
Speaker 1: have intrinsic value. And I'm surprised that Peter Shift says
Speaker 1: that because he's a very strong Austrian economist, um, and
Speaker 1: he should understand that there is no such thing as
Speaker 1: intrinsic value. That all value is subjective. All value subjective.
Speaker 1: If I had a billion dollars of gold, but I
Speaker 1: was on a deserted island and I had no boat,
Speaker 1: no phone, no food, no water, nowhere to spend the money.
Speaker 1: That gold is worthless. It's completely worthless to me. As
Speaker 1: a matter of fact, it could be a liability because
Speaker 1: now how do I even carry that around on the
Speaker 1: deserted island, So it's worth it's worth nothing to me.
Speaker 1: There's no intrinsic value to it. Now you might say,
Speaker 1: well food, Then food would have intrinsic value, because if
Speaker 1: you had it on the deserted island, that food to
Speaker 1: be worth a lot. Yes, But last night at dinner,
Speaker 1: I threw my leftovers away. That food had no value
Speaker 1: to me, see what I'm saying. So it's all subjective. Now, um,
Speaker 1: you know, for those leftovers, if I was hungry, I mean,
Speaker 1: if I was really hungry, maybe to be worth money
Speaker 1: less than what it would cost me to go buy
Speaker 1: the full meal. So let's say I was a homeless
Speaker 1: you know, homeless or whatever, and it's a thirty dollar steak.
Speaker 1: Maybe I'll pay five bucks for a piece of that steak.
Speaker 1: But if I was on that deserted island and there
Speaker 1: was that piece of steak, I would give my entire
Speaker 1: life savings for that. So again, value is subjective. Hopefully
Speaker 1: that makes sense and you have to understand that. Uh,
Speaker 1: and because of what we have today. So money started
Speaker 1: out as commodity money gold, it had value, and then
Speaker 1: it had money no as properties, durable, portable, divisible, etcetera.
Speaker 1: But then something changed. And this is the key piece
Speaker 1: to under stand, because if you can understand this key piece,
Speaker 1: then you can understand the revolution that we have today.
Speaker 1: More importantly, you can understand what we're going to need
Speaker 1: to transform the world. This is a very key piece.
Speaker 1: And what is that, Well, that's the portability peace. So
Speaker 1: we live in the information age today. We don't live
Speaker 1: in the physical agent anymore. And like I said, we
Speaker 1: use zoom. I can't send you money over zoom. So
Speaker 1: in order to get that gold or any any commodity
Speaker 1: of money for that matter, to become more portable, we
Speaker 1: had to do something to make it have more velocity.
Speaker 1: You've heard this term velocity of money. So in order
Speaker 1: to get this velocity of this money, we had to
Speaker 1: do something. But that is the crux of the problem.
Speaker 1: That's where everything comes off the rails. So I'm gonna
Speaker 1: explain that to you and more so you can understand
Speaker 1: what what's wrong with our money and what we need
Speaker 1: to solve this thing. I'll explain that to you and more.
Speaker 1: You listen to the Markmas Show. By the way, we're
Speaker 1: talking about the decentralized revolution. We're talking about the way
Speaker 1: the world is changing through the lens of politics, finance,
Speaker 1: and technology. Of course, we're talking about bitcoin, and we're
Speaker 1: talking about money today, what it is, so you can
Speaker 1: understand that, you can formulate your own ideas off of it,
Speaker 1: so you're not walking around like a mindless parent party
Speaker 1: and everybody else's thoughts. I'll be right back with that
Speaker 1: and more in a minute. Don't go away, all right,
Speaker 1: welcome back. You are listening to the markma Show, always
Speaker 1: talking to you about the decentralized revolution, talking about the
Speaker 1: way the world is breaking apart and changing right before
Speaker 1: our eyes, which of course is important to understand what
Speaker 1: the heck is going on today more importantly, so you
Speaker 1: know what comes next, and of course we're talking about
Speaker 1: it through the lens of politics, finance, and technology. Of course,
Speaker 1: we're also talking about bitcoin. As you might imagine. Now
Speaker 1: we're talking about money so you can understand the problems
Speaker 1: that we have today and formulate your own ideas off
Speaker 1: of that. We went through a bunch I'm not going
Speaker 1: to recap it. If you've missed it, don't worry. I
Speaker 1: got your back because you can catch me on demand.
Speaker 1: Just search Mark Moss podcast. Find me on any of
Speaker 1: your favorite podcast players, I heart app or I Tunes
Speaker 1: or whatever. So anyway, here we are, Um I was
Speaker 1: I left you at the cliffhanger. If you're still with me,
Speaker 1: I left at the cliffhanger. And the reason why commodity
Speaker 1: money failed commodity money gold. The reason why it failed
Speaker 1: is because it was not portable enough. And so in
Speaker 1: order to move the money faster, we had to do
Speaker 1: something in order to get velocity. You always hear about
Speaker 1: velocity of money. The the economist, the Federal Reserve tell
Speaker 1: you that the velocity of money is too low. And
Speaker 1: so in order to get the money to move faster,
Speaker 1: in order to add velocity, they to do something. And
Speaker 1: that's something is they had to add debt on top
Speaker 1: of it. So gold is a base layer, it's settlement layer.
Speaker 1: If I have the gold, I have the gold. No
Speaker 1: one debates that I have the gold. They can see
Speaker 1: it in my hand. And if I hand you that gold,
Speaker 1: you have the gold, and we see it in your hand.
Speaker 1: And nobody debates that. That's in the physical world. The
Speaker 1: problem is it's very slow. So if I want to
Speaker 1: send it to you in New York or across the sea,
Speaker 1: it's very slow to get it there. So in order
Speaker 1: to get it to go faster, we had to add
Speaker 1: a second layer on top. And that second layer was debt,
Speaker 1: a liability. So what do I mean by that, Well,
Speaker 1: now what we do is we put the gold in
Speaker 1: the bank. So now I don't have the gold and
Speaker 1: you don't have the gold, but neither of us have
Speaker 1: the gold. What we do is we put the gold
Speaker 1: in the bank, and now the bank has the gold
Speaker 1: and they owe me the gold. So instead of me
Speaker 1: having the gold and me owning the gold, and I
Speaker 1: have the golden, everybody knows you have the goal. Now
Speaker 1: the bank owes it to me. It's kind of the same,
Speaker 1: but not really. Obviously, if I have the gold, everyone
Speaker 1: knows I have the gold. As long as I can
Speaker 1: secure the gold, that's my gold. But if the bank
Speaker 1: owes it to me, there's a chance I don't get
Speaker 1: that gold back. There's a chance. Now, each of these
Speaker 1: banks have their own different risk rewards. Now, if I
Speaker 1: want to send you the gold in New York. Now
Speaker 1: it's very fast. So the bank just credits. They say
Speaker 1: on their ledger, on their piece of paper and their
Speaker 1: computer thing, they say Mark no longer has the gold,
Speaker 1: and now you have the gold. That's it. It's a
Speaker 1: ledger statement, very quick. So in order to get that velocity,
Speaker 1: they had to add debt, and they did that and
Speaker 1: that's how gold scaled. The problem with that is now
Speaker 1: we have to trust. Now we have to trust the
Speaker 1: bank to keep track of that gold. We have to
Speaker 1: trust that if they say I if I have the gold,
Speaker 1: that they say I have the gold. They don't arbitrarily
Speaker 1: just say that you have the gold. We also have
Speaker 1: to trust that they haven't done something with the gold
Speaker 1: and maybe don't even have any gold at all. What
Speaker 1: if they say you have the gold and say I
Speaker 1: have the gold, but they don't actually have the gold,
Speaker 1: like fractional reserve banking sort of. We'll come back to that. So, UM,
Speaker 1: that's exactly what happened. We had to introduce debt, and
Speaker 1: that UM then lead to these paper gold certificates. So
Speaker 1: those were claims on the gold. Now anytime I want
Speaker 1: I can take that paper claim, I go to the
Speaker 1: bank I could get that gold. It was an IOU
Speaker 1: and that's how that works. Now, what happened is eventually
Speaker 1: people started trading those gold certificates around enough where they
Speaker 1: started to think they were money themselves. And eventually and
Speaker 1: semny one, the government said no more gold. Now you
Speaker 1: just have paper. And so that's where we get the
Speaker 1: term fiat money. And a lot of times people think
Speaker 1: fiat means fake or something like that. Now the word
Speaker 1: fiat means by decree, meaning it has value because we
Speaker 1: say it has value. So again, remember money, gold emerged.
Speaker 1: Money is emergent. Gold emerged as the best form of money.
Speaker 1: And this is a key piece to understand gold has value.
Speaker 1: Because we say it has value, we assign value to it.
Speaker 1: There's nothing backing gold. Gold is just gold, there's nothing
Speaker 1: backing it. But the debt has to have something back
Speaker 1: in it. So when they gave me that paper gold
Speaker 1: certificate that I could go redeem for that gold, at
Speaker 1: some point, what was backing that claim? What was backing
Speaker 1: that claim that I was holding, Well, it was backed
Speaker 1: by the gold that I could go redeem for that
Speaker 1: paper gold certificate. But what's backing the gold? Nothing? Nothing
Speaker 1: backs the gold. The gold is just the gold. The
Speaker 1: gold is the asset. It's a physical assets, a key
Speaker 1: piece to n understand. The reason why it's a key
Speaker 1: piece to understand is because people would ask all the time,
Speaker 1: for example, like well, what's backing bitcoin? And again that
Speaker 1: just shows that there's a there's a complete lack of
Speaker 1: understanding of what money is. Only debt needs to be
Speaker 1: backed by something. For example, Um, you might own a
Speaker 1: home or probably you own a car. Right, you want
Speaker 1: to you own a home where you own a car,
Speaker 1: and you probably have a loan on one of those assets.
Speaker 1: And the bank, some bank is holding the note to
Speaker 1: your house or to your car, and they hold that
Speaker 1: on their books as an asset. What's backing that asset?
Speaker 1: Your house or your car? Right? If you don't make
Speaker 1: your car payment, you don't make your house pay, what
Speaker 1: are they gonna do Where they're gonna take that piece
Speaker 1: of paper, They're gonna go claim and they're gonna take
Speaker 1: your ownership of your house or your car. That makes sense.
Speaker 1: So only debt needs to be backed by something. What
Speaker 1: backs the house? Nothing? It's just a house. It's just
Speaker 1: a house. What back what backs a banana? Nothing? It's
Speaker 1: just a banana. Now, if I issued you an I
Speaker 1: owe you saying I owe you a banana in the future,
Speaker 1: you had a claim for it. What backs that claim?
Speaker 1: Well the banana. See how that works. So when people say, well,
Speaker 1: what's backing bitcoin, nothing's backing bitcoin, just like nothing's back
Speaker 1: in gold. Now, some people would say, well, Mark, that's
Speaker 1: not true. Um, energy backs gold. Right, they had to
Speaker 1: use earth movers and dig up ground, and they had
Speaker 1: to pull the dirt, the dirt on the ground and
Speaker 1: sift to get the gold out, and they had to
Speaker 1: refine the gold, and so there was great expense that
Speaker 1: was spent. Energy was spent, money was spent, time was spent,
Speaker 1: Dollars were spent. You know, maybe it was dollars to
Speaker 1: produce that ounce of gold. So all that time money
Speaker 1: energy backs the gold. Well, yes and no. But we'd
Speaker 1: also say the thing about bitcoin. So bitcoin has miners,
Speaker 1: and there's electricity, and there's man hours and all those things.
Speaker 1: And you have a cost to produce a bitcoin as well.
Speaker 1: So it's it's in important for money to have a
Speaker 1: true cost, no doubt, which is why the fiat money
Speaker 1: system is so wrong. Because I can just arbitrarily click
Speaker 1: a button produce more money. So money does need to
Speaker 1: have a true cost like gold or like bitcoin, but
Speaker 1: there's nothing backing it. So hopefully that makes sense. Um,
Speaker 1: So anytime you hear someone saying that what's backing goal bitcoin,
Speaker 1: then you just know there's a complete lack of understanding
Speaker 1: of what money is, just like there's nothing backing gold. Now,
Speaker 1: the reason why I bring that up is for a
Speaker 1: couple of reasons. So first of all, asset backed cryptocurrencies,
Speaker 1: they make no sense. I want to talk about that,
Speaker 1: but I want to talk about something even bigger, which
Speaker 1: is the real revolution that changed the course of humanity
Speaker 1: that most people aren't realizing right now, and that's how
Speaker 1: we took physical property and made the leap into the
Speaker 1: digital space. I mean, this is mind blowing, but most
Speaker 1: people haven't really thought through it. So I wanna talk
Speaker 1: about that, but we'll start with the asset backed cryptocurrency.
Speaker 1: So a lot of people I get comments across my
Speaker 1: YouTube channel, which, by the way, if you're not following
Speaker 1: me on YouTube, you should just search Mark Moss on YouTube.
Speaker 1: I put out a couple of teaching videos a week
Speaker 1: on their typically you know, twenty minute video taking a
Speaker 1: very complex subject breaking it down with charts and graphs.
Speaker 1: It's all visual. UM. So follow me on on on
Speaker 1: there if you're not already UM, and on on on
Speaker 1: social media as well at one Mark Moss. But I
Speaker 1: get comments. I get five thousand comments a week, and
Speaker 1: I see these comments all the time. It's like, I
Speaker 1: would never trust something completely digital. It's not real, it's
Speaker 1: not tangible. I can't hold it in my hand. What
Speaker 1: I would rather trust is. What I'd rather do is
Speaker 1: if if if there was a gold backed cryptocurrency, if
Speaker 1: it was backed by something, so could we have a
Speaker 1: gold back cryptocurrency UM. There's recently one UM carbon credit
Speaker 1: crypto carbon credits, where carbon credits are backed by the
Speaker 1: cryptocurrency UM. But these things have deep issues with them,
Speaker 1: and so I want to break that down. The problem,
Speaker 1: the problem with trying to back something by adding the
Speaker 1: debt on top of it. And then we're gonna talk about,
Speaker 1: like I said, this the real revolution of what's just
Speaker 1: happened that nobody's paying attention to. And if you're missing this,
Speaker 1: you're gonna miss out on this whole thing. Uh, you're
Speaker 1: listening to the Mark Moa show. We're talking about the
Speaker 1: decentralized Revolution, talking about the way the world is changing
Speaker 1: through the lens of politics, finance, and technology. I talk
Speaker 1: about all three of those things right now, we're talking
Speaker 1: about history and finance. But I'm gonna be back with
Speaker 1: more to explain to you. This base layer, this first
Speaker 1: principle is thinking, so you can formulate your own ideas
Speaker 1: of this, because if you don't understand this, you're gonna
Speaker 1: miss what's going on. You're gonna miss the biggest opportunity
Speaker 1: of your entire lifetime. And I certainly don't want that
Speaker 1: to happen to you. So I'll be back with that
Speaker 1: in more a minute. Don't go away, all right, welcome back.
Speaker 1: You are listening to the Markma Show. We're talking about
Speaker 1: the decentralized Revolution. Explaining to you how the world is
Speaker 1: changing right now. I mean, I don't need to explain
Speaker 1: to you. If you've got your eyes open, you see
Speaker 1: the world's changing. The world's breaking apart. Yeah, we knew
Speaker 1: it would because the pendulum swings from centralization to decentralization.
Speaker 1: So I'm explained that to you through the lens of politics, finance,
Speaker 1: and technology. And of course we're talking about bitcoin today.
Speaker 1: We're talking about what is money from a first principles level.
Speaker 1: And the reason why that's important is that becauseaid I
Speaker 1: was at this event, the Freedom Fest. Shout out to
Speaker 1: Freedom Fest. I'd love to come back if you want
Speaker 1: to invite me back. Um, And I just talked to
Speaker 1: all these people that just didn't understand what this was,
Speaker 1: and so they have this they have they have all
Speaker 1: these misunderstandings of of of the economy and how money
Speaker 1: works because they don't understand this. And I don't want
Speaker 1: that happened to you, So I'm not gonna rehash it all.
Speaker 1: If you missed it, check out my podcast on the
Speaker 1: Mark Moa Show. Just search Market Moss podcast, my Heart
Speaker 1: radio app, iTunes app whatever. Um so um, we've recovered
Speaker 1: all that so um. Gold backed or asset back cryptocurrencies
Speaker 1: make no sense. They make no sense. And the reason
Speaker 1: why they make no sense is for the exact reason
Speaker 1: that I've explained with gold. In order to get goal
Speaker 1: to have velocity, we had to add debt. The debt
Speaker 1: is what's sped it up. But the problem is it
Speaker 1: leads to all sorts of what we call counterparty risks.
Speaker 1: Like I said, what if, the what if the person
Speaker 1: keeping the ledger just says, well, Mark doesn't have the
Speaker 1: gold anymore, now you do. I mean I trusted them
Speaker 1: and now they just they screwed me over. Or what if?
Speaker 1: Um they actually get rid of the gold and they
Speaker 1: just pretend they ledger ledger back and forth, but they
Speaker 1: don't really even have the gold. So we have to
Speaker 1: trust that they have that ledger. The problem is is
Speaker 1: that over and over and over they've broken that trust.
Speaker 1: So N three um they created, they got rid of
Speaker 1: the gold. They had way too many of these I
Speaker 1: O U s and so what do they do, Well,
Speaker 1: they stole everybody's gold. The government of the United States
Speaker 1: seized your gold, stole your gold and made it illegal
Speaker 1: for you to own gold. Why because they didn't have
Speaker 1: it they needed more of it. Um one. They did
Speaker 1: it again. So how can we trust that? We can't.
Speaker 1: We saw what happened with Russia. Russia got their bank
Speaker 1: account seas. We saw the Canadian truckers, they got their
Speaker 1: bank acount seast. So that money in the bank is
Speaker 1: a liability. Someone owes you that money, but the person
Speaker 1: that owes it to you, the person that keeps that ledger,
Speaker 1: could just wipe your ledger off. Whenever they want. That's
Speaker 1: the problem. So why would I want an asset back cryptocurrency?
Speaker 1: So why would someone say, well, I can't trust uh Um,
Speaker 1: I can't trust pick one because I can't hold it
Speaker 1: in my hand. Now if it was, if it was
Speaker 1: a gold back cryptocurrency, I could trust that, But but
Speaker 1: why it's the same problem. So now what I have
Speaker 1: a token that represents a claim on that goal that
Speaker 1: that person is holding for me, which is the exact
Speaker 1: story I gave you. But how do I know they
Speaker 1: really have that gold? How do I know when I
Speaker 1: give them that claim they'll give me the gold back?
Speaker 1: I don't. And there is the crux of the matter.
Speaker 1: There doesn't need to be anything backing it. Like I said,
Speaker 1: we're starting to see all types of things being backed,
Speaker 1: Crypto being backed by things. This latest one is this
Speaker 1: carbon credits are backed crypto. Crypto is backed by carbon credits. Again,
Speaker 1: the same thing, uh um. But it doesn't make sense
Speaker 1: to take a physical thing, a real world thing, and
Speaker 1: try to back it with something digital. But of course
Speaker 1: that doesn't stop people from trying. Um. And we can
Speaker 1: see of course X we work CEO Adam Newman. Now,
Speaker 1: if you're familiar with the story. We work. Um, I
Speaker 1: hate to bore you, so actually I won't. I'm not
Speaker 1: gonna go deep into the details. But we work. You know,
Speaker 1: they had this great idea that we're gonna go do
Speaker 1: long term leases and Class A office buildings and then
Speaker 1: they would break it up and sublease it out to
Speaker 1: individual people who wanted places to work. Um, the company
Speaker 1: ended up being worth more than all the buildings that
Speaker 1: they had rented out. How does that make sense? And
Speaker 1: it doesn't. And if you understand how that doesn't make sense,
Speaker 1: then you understand who Adam Newman is. And I guess
Speaker 1: he's kind of a scammer, of course, and that's why
Speaker 1: he's creating this new carbon credit backed thing which doesn't
Speaker 1: make any sense. But let me let me. Now that
Speaker 1: you understand that why that doesn't make sense, let me
Speaker 1: explain to what actually been here. So we have physical things,
Speaker 1: as I talked about. If I have gold, I have gold.
Speaker 1: If you have gold, you have gold. Everybody sees it,
Speaker 1: everybody knows it. It's what we call bearer instrument, a
Speaker 1: bear instrument. If I have it, the bearer owns it.
Speaker 1: It's a bare instrument. Stocks trick if its used to
Speaker 1: bear instruments. Um. But the problem is is, as I said,
Speaker 1: it's not portable, doesn't doesn't doesn't happen over space. So
Speaker 1: in order to go into the information age, we now
Speaker 1: have to use a ledger. Someone has to hold that
Speaker 1: physical asset, right, that's the problem. But what bitcoin did
Speaker 1: is it solved that problem and now it allows us
Speaker 1: to have a bear instrument. But digitally, it's never been
Speaker 1: done before because digital things can be copied. You send
Speaker 1: me a file. Now I have the file and you
Speaker 1: have the file. I make a copy of the file.
Speaker 1: I can make ten tho copies of the file. Digital
Speaker 1: things get copied. So for the first time and ever,
Speaker 1: we've figured out a way to have a digital bear instrument.
Speaker 1: It's never been done before. And do you understand how
Speaker 1: big that is, because this is the problem that that
Speaker 1: we're stuck with, where all of these assets get um centralized.
Speaker 1: And then I always say centralization least of manipulation. Now
Speaker 1: they have those assets, they manipulate those assets. They say
Speaker 1: we have more than we did. We don't want to
Speaker 1: send them back to all these things that can happen,
Speaker 1: and so it solved that problem. Now we have digital
Speaker 1: bare asset. It's it's the first time we've ever been
Speaker 1: able to have digital property that has no counterparty risk. So, uh,
Speaker 1: you know you have an asset. You own Tesla stock,
Speaker 1: at least you think you do. I mean it's in
Speaker 1: my e trade account, but I guess e Trade owes
Speaker 1: me Tesla stock. Do they have the Tesla stock, We'll
Speaker 1: know it's actually owed to them, which is owed to them.
Speaker 1: So it's a it's a it's a it's a liability.
Speaker 1: There's counterparty risk. There's a chance because I don't have
Speaker 1: it in my hand, that I might not get it back.
Speaker 1: But bitcoin solved that for the first time. Now we
Speaker 1: have a digital asset that I can take custody of
Speaker 1: and I have it, and if I want to send
Speaker 1: it to you digital Ellie, I can do that with
Speaker 1: nobody in the middle, no counterparty risk, no liability risk.
Speaker 1: Now why is that important? Well, as you might imagine,
Speaker 1: we live in an information age today. The problem of
Speaker 1: using physical commodities that they don't scale, and so the
Speaker 1: only way for the world to work, the only way
Speaker 1: for the world to work using something like gold or
Speaker 1: something physical oil commodities things like that, is to put
Speaker 1: debt on top of it. But that debt leads to
Speaker 1: then trust us trusting the person with those assets, and
Speaker 1: we have to trust that they don't manipulate, that they
Speaker 1: don't create more of it. But we've proven, proven all
Speaker 1: throughout humanity that we can't trust those people. As a
Speaker 1: matter of fact, that trust has been brought to the
Speaker 1: forefront and slain on the altar with the trucker protests
Speaker 1: in Canada and then for the whole world to see
Speaker 1: with Russia, one of three super superpowers with nuclear weapons
Speaker 1: that got their accounts seized. And so now, for the
Speaker 1: first time in history, we have a asset that can
Speaker 1: scale with pure velocity without putting debt on top of it.
Speaker 1: We've never had an asset before that we could scale
Speaker 1: without putting debt, and debt causes the problems. Do you
Speaker 1: see where we're going with this? So for the first
Speaker 1: time that one of the oldest problems in in in
Speaker 1: mankind is how do I store my assets in a
Speaker 1: way that can't be stolen from me? Bitcoin solve that.
Speaker 1: How do we have an asset that we can apply
Speaker 1: velocity to without adding debt? Well, Bitcoin solved that as well. Now, um,
Speaker 1: it's about as deep as I'm gonna go, but hopefully
Speaker 1: you can understand that and you can start to see
Speaker 1: where these problems lie and how big of a solution
Speaker 1: that is. Now, what does that mean for the future. UM,
Speaker 1: There's been countless books, I don't hundreds of thousands of
Speaker 1: hours of podcasts and shows talked about this at length,
Speaker 1: So we can't get into all that, but I wanted
Speaker 1: to give you this base foundation of what money is,
Speaker 1: how it works, so now you can start to build
Speaker 1: your own ideas off this. So now when you hear UM,
Speaker 1: the federal government wants to increase the debt ceiling, you
Speaker 1: understand what they're talking about. When you understand that currencies
Speaker 1: around the world are starting to fall and they need
Speaker 1: to have bonds, they need to take on more debt,
Speaker 1: you start to understand what that means. Now all the reasons,
Speaker 1: all the perversions, all the distortions that all this debt creates. Again,
Speaker 1: that's a tens of thousands of hours of discussion that
Speaker 1: we can get into that, UM, But don't worry, I
Speaker 1: will as long as you're tune in with me each
Speaker 1: and every week you're listening to the Mark Moa show
Speaker 1: talking about this world that's changing right before very eyes,
Speaker 1: the decentralized revolution, talking about through the lens of politics, finance,
Speaker 1: and technology. Each and every week, I'm gonna keep filling
Speaker 1: you in on bits and pieces of this. We like
Speaker 1: to say that fix the money, we can fix the world.
Speaker 1: Pretty much every problem that we have in the world today,
Speaker 1: from lockdowns to censorship, to rush in Ukraine, to um
Speaker 1: to incarceration rates, to obesity, you name it, they're all
Speaker 1: caused by distortions of the money supple. So if we
Speaker 1: fix the money, we fix the world. And we do
Speaker 1: that by getting rid of the debt. We didn't ask
Speaker 1: that that can scale without adding um. The scalesed with
Speaker 1: velocity without adding the debt. And that's what bitcoin solved.
Speaker 1: That's the real revolution that's happening that everybody's blinded to.
Speaker 1: But now you're not. Anyway, you listen to the Markma Show.
Speaker 1: Hopefully that makes sense. Thanks so much for listening.