WEBVTT - The Real Problem With Money, And The Solution Is... 0:00:00.040 --> 0:00:02.800 Hello, and welcome to another episode of The Mark Moss Show, 0:00:02.880 --> 0:00:06.360 where we talk about the de centralized Revolution. We're talking 0:00:06.400 --> 0:00:09.119 about the way the world is changing looking through the 0:00:09.160 --> 0:00:12.840 lens of politics, finance, and technology. Of course, we're talking 0:00:12.840 --> 0:00:17.239 about bitcoin and cryptocurrencies and how they are driving this 0:00:17.360 --> 0:00:21.360 change as we look across through these three lenses. Now 0:00:22.200 --> 0:00:25.400 each week, I'm trying to bring you some new education 0:00:25.560 --> 0:00:27.600 so you can look at these things differently, you can 0:00:27.680 --> 0:00:29.760 understand them in better context of what's going on in 0:00:29.760 --> 0:00:31.200 the world today. Of course, I try to bring you 0:00:31.200 --> 0:00:33.519 the latest breaking news so you know what's going on. 0:00:33.600 --> 0:00:36.800 And when I can some interesting guests, you can hear 0:00:36.840 --> 0:00:40.599 some different perspectives other than just myself. And there's so 0:00:40.680 --> 0:00:44.159 much to learn. And one of the things that I 0:00:44.200 --> 0:00:46.600 try to talk about on a regular basis is trying 0:00:46.640 --> 0:00:49.639 to help you understand what's going on. And we understand 0:00:49.680 --> 0:00:52.400 things by taking complex subjects and we make them easy 0:00:52.440 --> 0:00:54.680 to understand by taking them down to what we call 0:00:54.800 --> 0:00:57.840 first principles level. They're most basic, and once we understand 0:00:57.880 --> 0:01:00.520 them on the first principles level, then we're able to 0:01:00.640 --> 0:01:03.600 understand them at a more complex level. But we're also 0:01:03.640 --> 0:01:08.360 able to start to formulate our own ideas off of them. 0:01:08.400 --> 0:01:10.600 If you don't take the time to understand things down 0:01:10.640 --> 0:01:14.759 to the base layer, first first principles, then you're never 0:01:14.800 --> 0:01:16.920 really gonna understand them. You'll never be able to think 0:01:16.920 --> 0:01:19.080 about the money, and you'll never be able to formulate 0:01:19.120 --> 0:01:22.600 your ideas. All you'll be doing is just partying headlines 0:01:22.680 --> 0:01:24.520 that you see over and over and over. Now you 0:01:24.560 --> 0:01:26.319 don't want to do that, do you, because then you'll 0:01:26.360 --> 0:01:28.440 find out just you know, repeating a headline, and you 0:01:28.480 --> 0:01:30.680 won't really know what you're saying, and then someone's gonna 0:01:31.040 --> 0:01:33.080 be smarter than you and they're gonna make you feel dumb. 0:01:33.120 --> 0:01:34.600 And you don't want that to happen. And I certainly 0:01:34.600 --> 0:01:36.640 don't want that to happen to you. So we'll try 0:01:36.680 --> 0:01:39.479 to break these things down so you have that education 0:01:39.640 --> 0:01:42.360 here on the Mark Moss Show. Now you know, I 0:01:42.440 --> 0:01:45.640 was recently last weekend, I was speaking at an event 0:01:45.680 --> 0:01:48.960 in Las Vegas called Freedom Fest. It was an awesome event. 0:01:49.040 --> 0:01:52.200 Now I go to a lot of events. I've probably 0:01:52.200 --> 0:01:56.040 going to weigh too many events recently. I'm thinking about 0:01:56.240 --> 0:01:59.480 scaling back on some of my speaking engagements. But I 0:01:59.560 --> 0:02:01.080 really like this one because it was something that I 0:02:01.120 --> 0:02:04.720 don't normally do. So I'm typically at financial conferences, which 0:02:04.720 --> 0:02:06.600 of course that's my niche. So you'll see me at 0:02:06.880 --> 0:02:10.280 financial conferences. Like a couple of last month, I was 0:02:10.280 --> 0:02:13.000 in Miami at the Rebel Capitalist Live. Of course my 0:02:13.080 --> 0:02:16.320 own events that I do, market Disruptors Live. We have 0:02:16.360 --> 0:02:18.920 tickets going on sale for next year's event, Market Disruptors 0:02:19.000 --> 0:02:22.120 Live dot com. You can check that out, um. But 0:02:22.200 --> 0:02:25.040 also you know other financial events, bitcoin events. The Bitcoin 0:02:25.160 --> 0:02:28.040 Event in Miami, it's the largest bitcoin gathering. There's about 0:02:28.080 --> 0:02:31.160 forty thousand people there, and of course yours truly. I 0:02:31.200 --> 0:02:33.840 was a speaker on the main stage. They're talking about 0:02:33.840 --> 0:02:36.760 bitcoin in Macro. I was also I worked the news 0:02:36.760 --> 0:02:38.640 desk for a couple of hours. So anyway, I'm at 0:02:38.639 --> 0:02:42.160 those types of events finance, bitcoin, et cetera. But this 0:02:42.280 --> 0:02:44.640 Freedom Fest was something that I don't normally do. It 0:02:44.720 --> 0:02:48.440 was just about freedom. That's a big word. As a 0:02:48.480 --> 0:02:50.280 matter of fact, today it's sort of a dirty word. 0:02:51.240 --> 0:02:54.359 I can't believe that I'm alive to see that some 0:02:54.440 --> 0:02:57.760 people think that freedom is like some crazy fringe right 0:02:57.840 --> 0:03:02.560 wing or something like that. Uh, freedom is dangerous, it's violence. 0:03:02.760 --> 0:03:06.440 I would agree it actually is dangerous, um to let 0:03:06.480 --> 0:03:09.600 people be free, but that's part of being free. So anyway, 0:03:09.639 --> 0:03:11.720 Freedom Fest, and it was about all types of freedom. 0:03:11.760 --> 0:03:14.840 So there was you know, quite a few um uh 0:03:15.040 --> 0:03:17.160 libertarian groups that were there. As a matter of fact, 0:03:17.160 --> 0:03:19.800 I was invited by Joe Jorgensen. Shout out to Joe 0:03:20.360 --> 0:03:23.519 if you're listening, Joe, Um. She is the I believe, 0:03:23.680 --> 0:03:28.520 the only female who's ran for president two times, and 0:03:28.560 --> 0:03:31.160 she's ran for president under the Libertarian Party. So Joe 0:03:31.240 --> 0:03:33.959 Jorgenson invited me there and we did a panel on 0:03:34.320 --> 0:03:39.440 UM titled uh the Price of Money. It was interesting 0:03:39.440 --> 0:03:41.960 panel UM. It started out really well. It kind of 0:03:42.000 --> 0:03:44.600 started going into this kind of like back and forth 0:03:44.640 --> 0:03:47.560 war against a bunch of different cryptocurrencies was one I 0:03:47.600 --> 0:03:51.560 wasn't super interested engaging in. But the initial price of 0:03:51.600 --> 0:03:53.880 money I thought was pretty interesting. And so then I 0:03:53.880 --> 0:03:55.400 got to speak to lots of people there at the 0:03:55.400 --> 0:03:57.080 Freedom Fest, and like I said, there was people from 0:03:57.120 --> 0:04:00.800 the Liberal Libertarian Party. There was people there for monetary 0:04:01.000 --> 0:04:03.800 or money freedoms um. So there was gold guys and 0:04:04.000 --> 0:04:08.200 investment guys um. And then there was health freedom. So 0:04:08.240 --> 0:04:10.000 then there was some of the big names that you 0:04:10.080 --> 0:04:13.000 might know, like Dell Big Tree or Dr Robert Malone. 0:04:13.040 --> 0:04:14.920 They're on health freedom, so all different types of freedom. 0:04:15.480 --> 0:04:17.360 One thing that Del big Tree said, if you guys 0:04:17.400 --> 0:04:19.360 don't know who Del big Tree is, you should definitely 0:04:19.400 --> 0:04:22.520 check them out. Um, he has a lot of passion. 0:04:22.760 --> 0:04:24.720 I love a guy with a lot of passion. And 0:04:24.760 --> 0:04:27.279 he was he was on a rant and he was 0:04:27.320 --> 0:04:30.320 on stage and he said, I don't care about your money. 0:04:30.839 --> 0:04:32.680 I think that was kind of a point to bitcoiner 0:04:32.880 --> 0:04:35.400 or gold I don't care about your money. I don't 0:04:35.440 --> 0:04:37.799 care or freedom of money. I don't care about freedom 0:04:37.800 --> 0:04:40.359 of guns. In your Second Amendment. He said, this is 0:04:40.400 --> 0:04:43.760 the battle of our lifetime over your body. If you 0:04:43.839 --> 0:04:46.839 don't have freedom over your own body, you have no 0:04:46.920 --> 0:04:48.919 freedom at all, which was an awesome point that he 0:04:49.000 --> 0:04:51.279 made and one that I would agree with. So it 0:04:51.320 --> 0:04:52.920 was great to do that. But anyway, back to the point. 0:04:53.080 --> 0:04:55.080 So I with on this panel and I'm walking around 0:04:55.120 --> 0:04:57.040 the conference. I'm talking to all these different people who 0:04:57.080 --> 0:04:59.000 are all from different areas of life, and they've come 0:04:59.040 --> 0:05:02.599 for all different reasons except for all about freedom. And 0:05:02.600 --> 0:05:04.880 I gotta asked a lot of questions, and um, I 0:05:05.000 --> 0:05:12.279 found that there's just this massive, um misunderstanding, but also yeah, misunderstanding. 0:05:12.320 --> 0:05:15.039 I guess lack of understanding. Maybe even is a better 0:05:15.160 --> 0:05:20.000 term of what money even is. And I know that 0:05:20.080 --> 0:05:22.960 sounds kind of basic, and don't turn me off, Ye, 0:05:23.040 --> 0:05:24.720 don't turn me off yet. I'm gonna I'm gonna back 0:05:24.720 --> 0:05:26.200 it up, right. So what is money? Well, I know 0:05:26.240 --> 0:05:27.640 what money is. I can open up my wallet, I 0:05:27.640 --> 0:05:28.920 have somewhere, I can go on my ban account, I 0:05:28.920 --> 0:05:30.640 can see how much money I have. But what is it? 0:05:31.680 --> 0:05:34.240 How is it used? What does it mean? And uh, 0:05:35.120 --> 0:05:37.680 understand that is the key to understanding what the heck 0:05:37.760 --> 0:05:39.400 is going on today in the world, with the foot 0:05:39.440 --> 0:05:42.599 of reserve and printing more money and raising interest rates 0:05:42.640 --> 0:05:45.120 and the economy shrinking and all these things. So there's 0:05:45.160 --> 0:05:48.160 that whole thing going on. Um, so you need to 0:05:48.240 --> 0:05:52.080 understand what money is to understand that, but also, um, 0:05:52.200 --> 0:05:54.039 how we could fix that, how we could have better 0:05:54.160 --> 0:05:56.560 versions of that, and what we might have in the future. 0:05:56.839 --> 0:05:58.680 And if you don't understand those basic things, then you 0:05:58.839 --> 0:06:02.080 just really don't have that first principles understand to build 0:06:02.080 --> 0:06:03.520 that on. So I thought, you know what, I'll take 0:06:03.560 --> 0:06:05.800 some of these questions and I spent hours and hours 0:06:05.800 --> 0:06:07.600 and hours talking to all these people there at the event. 0:06:08.000 --> 0:06:09.599 Let let me let me talk about this to my 0:06:09.640 --> 0:06:13.719 audience here. UM, that's you, that's you listening right now, 0:06:13.960 --> 0:06:16.680 and and we'll try to break that down. So understanding 0:06:16.720 --> 0:06:18.560 money is is difficult. I'm not gonna go all the 0:06:18.600 --> 0:06:21.000 back to the beginning, or maybe I will real quickly. 0:06:21.120 --> 0:06:22.600 Let me let me go back to the beginning, real quickly, 0:06:22.600 --> 0:06:25.240 and then we're gonna advance past that. So if you're 0:06:25.520 --> 0:06:28.000 if you're if you know what I'm talking about, stick 0:06:28.040 --> 0:06:29.440 with me. I'm gonna go through it real quickly. By 0:06:29.440 --> 0:06:31.440 the way, if you're just tuning in, you're listening to 0:06:31.480 --> 0:06:34.120 the Mark Moss Show talking about what I call the 0:06:34.200 --> 0:06:37.680 decentralized Revolution, looking at through the lens of politics, finance, 0:06:37.720 --> 0:06:40.560 and technology and as the world is changing right before 0:06:40.560 --> 0:06:44.640 our very eyes. And so what is money? Money is 0:06:44.680 --> 0:06:48.360 a medium of exchange. Money is something that communicates value. Um. 0:06:48.400 --> 0:06:51.880 It communicates um, what people want and what they don't 0:06:51.880 --> 0:06:55.480 want through something called price signals. It coordinates economies. So 0:06:55.520 --> 0:06:58.000 we could say it's a communication. We can say that 0:06:58.040 --> 0:06:59.800 it's a store of value. I don't want to get 0:06:59.800 --> 0:07:03.120 super philosophical with you here, but Basically, it's a way 0:07:03.120 --> 0:07:05.359 that I can store my value to be used at 0:07:05.400 --> 0:07:07.560 a later time. So I can store my wealth, my value, 0:07:07.600 --> 0:07:10.200 and I can use it to buy other things medium exchange. 0:07:10.560 --> 0:07:13.120 We don't need money, we don't. We don't want money. 0:07:13.960 --> 0:07:15.560 Now you might be go, what do you mean? Of 0:07:15.600 --> 0:07:16.880 course I want money, I want I want a bunch 0:07:16.880 --> 0:07:18.960 of money, as I can, Well, you don't really want money. 0:07:19.040 --> 0:07:21.880 What you want is the things that money will buy you. 0:07:22.320 --> 0:07:25.120 That's what you want. You want the things that money 0:07:25.160 --> 0:07:28.480 will buy you. So money is just that medium medium exchange. 0:07:28.600 --> 0:07:31.640 It allows us to get what we want. It also, 0:07:31.760 --> 0:07:34.520 as I said, stores that value. So for example, let's 0:07:34.520 --> 0:07:36.679 just say that I have to work for four hours 0:07:36.720 --> 0:07:40.239 a day to earn enough money to buy the food 0:07:40.280 --> 0:07:42.320 that I need to stay alive. Well, let's say that 0:07:42.320 --> 0:07:43.960 I decided to work an extra four hours. So now 0:07:44.000 --> 0:07:45.520 I'm gonna work eight hours that day. So I work 0:07:45.560 --> 0:07:48.000 an extra four hours. What do I do? How do 0:07:48.040 --> 0:07:52.080 I store that energy that was four hours that I worked? Well, 0:07:52.240 --> 0:07:54.240 I could put it. I get I get paid in money, 0:07:54.240 --> 0:07:57.360 and I hold that money. Now that four hours, that 0:07:57.280 --> 0:07:59.120 that extra that I worked, I'm storing it in money 0:07:59.160 --> 0:08:02.520 and tomorrow I could decide not to work tomorrow because 0:08:02.560 --> 0:08:04.400 I have those four hours saved up and I can 0:08:04.440 --> 0:08:05.760 buy that food that I need for the next day. 0:08:05.880 --> 0:08:09.280 That makes sense. So now that we have a very 0:08:09.280 --> 0:08:12.880 basic understanding of money, what it's used for, how it works, 0:08:12.920 --> 0:08:16.640 we also have to understand that money is emergent. So 0:08:17.000 --> 0:08:19.600 what do I mean by that? Well, again, we don't 0:08:19.600 --> 0:08:22.440 want money. What we want is that things that money 0:08:22.520 --> 0:08:25.600 will buy us. So in the beginning, we didn't have money. 0:08:25.600 --> 0:08:27.440 We just had barter. I would trade you a chicken, 0:08:27.480 --> 0:08:29.360 you trade me a goat. Right, if we're on a 0:08:29.360 --> 0:08:31.800 deserted island, you'd have coconuts. I'd go get a fish, 0:08:32.000 --> 0:08:33.960 and we trade for the things that we really want. 0:08:34.160 --> 0:08:36.920 But what happened is barter is extremely inefficient and it 0:08:36.920 --> 0:08:39.640 doesn't scale because you might not want my coconuts, my fish, 0:08:39.720 --> 0:08:41.520 my chicken, or my goat. And if you don't want 0:08:41.520 --> 0:08:44.160 any of those things, or the goat or the cow 0:08:44.280 --> 0:08:47.040 is too big, it's not divisible enough. You only want 0:08:47.040 --> 0:08:48.360 a little bit of the cow. But I only have 0:08:48.400 --> 0:08:50.920 a whole cow. And so well, if you don't take 0:08:51.000 --> 0:08:53.360 my if you won't take that, would you take this instead? 0:08:53.880 --> 0:08:57.160 And that thing becomes a medium of exchange, and eventually 0:08:57.360 --> 0:09:00.520 enough thing has become a medium exchange that one merges. 0:09:01.080 --> 0:09:02.480 I'm gonna come back with that and more than we're 0:09:02.520 --> 0:09:05.480 gonna go into talking about different types of assets, assets 0:09:05.559 --> 0:09:08.760 versus liabilities, commodity money, why we need debt for velocity, 0:09:08.960 --> 0:09:12.400 the revolution that has happened that we're witnessing right now, 0:09:12.480 --> 0:09:14.640 and what most people are missing and what you need 0:09:14.720 --> 0:09:16.400 to know in order to succeed. You listen to the 0:09:16.400 --> 0:09:20.520 Mark mo Show talking about the decentralized revolution, talking about bitcoin, 0:09:20.559 --> 0:09:23.960 cryptocurrencies and talking about the through the lens of politics, finance, 0:09:24.040 --> 0:09:27.520 and technology. And today we're talking about money and new 0:09:27.559 --> 0:09:30.280 forms of money and why you need to understand this. Um, 0:09:30.320 --> 0:09:31.520 I'll be back with that and more in a minute. 0:09:31.520 --> 0:09:33.920 Don't go away, all right, Welcome back. You are listening 0:09:34.000 --> 0:09:36.319 to the Mark Ma Show as we talk about each 0:09:36.360 --> 0:09:39.480 and every week, the decentralized revolution, the way the world 0:09:39.559 --> 0:09:41.760 is changing right before our very eyes. Of course, we 0:09:41.760 --> 0:09:45.360 look at it through the lens of politics, finance, and technology, 0:09:45.720 --> 0:09:49.040 so there's more context into what's happening today. A lot 0:09:49.080 --> 0:09:51.319 of people talking about politics, but what does it mean 0:09:51.320 --> 0:09:52.800 in the bigger context of things? That a lot of 0:09:52.840 --> 0:09:56.240 people talking about money or finance or investing, but what 0:09:56.280 --> 0:09:58.079 does that mean in the bigger context? And of course 0:09:59.120 --> 0:10:03.280 I'm bringing it all together there for you, money, finance, politics, technology, 0:10:03.440 --> 0:10:07.880 and the decentralized revolution of course being led by bitcoin, 0:10:08.520 --> 0:10:11.280 the decentralized technology. Now we were talking about before the break, 0:10:11.320 --> 0:10:15.040 talking about what is money? And more specifically, so you 0:10:15.040 --> 0:10:18.760 can understand what's going on today with inflation and the 0:10:18.800 --> 0:10:20.840 FED and how are they going to print more money? 0:10:20.920 --> 0:10:23.080 And what's happening with Europe and the bonds and all 0:10:23.120 --> 0:10:24.920 of these things, and so you have to understand them 0:10:24.920 --> 0:10:26.840 at the most basic. As I was saying, I was 0:10:27.000 --> 0:10:29.600 speaking at the Freedom FESTUS last weekend, and this one 0:10:29.640 --> 0:10:32.200 piece of information, this seemed to be the biggest stumbling 0:10:32.200 --> 0:10:34.600 box for everybody. So I thought we'd talked about that today. 0:10:34.679 --> 0:10:37.520 So we talked about what is money. I'm not gonna 0:10:37.520 --> 0:10:39.240 go back and rehash that. If you missed it, you 0:10:39.280 --> 0:10:42.320 can you can check it out on the podcast check 0:10:42.360 --> 0:10:44.920 out Mark Moss podcast. Just search that on the I 0:10:45.000 --> 0:10:46.800 Heart Radio app. Of course you can check it out 0:10:46.800 --> 0:10:50.439 on iTunes anywhere that you listen to podcasts. Oh and 0:10:50.480 --> 0:10:51.880 by the way, while you're at it check me out 0:10:51.920 --> 0:10:54.280 on social media at one Mark Moss. That's right, at 0:10:54.320 --> 0:10:59.000 the number one Mark Moss. Now, um, so what is money? So? Um, 0:10:59.200 --> 0:11:01.480 money is like this favor. It allows me to store 0:11:01.480 --> 0:11:03.280 my value so I can spend it at a later time. 0:11:03.880 --> 0:11:06.319 So we got past that. Um, what what we use 0:11:06.440 --> 0:11:08.839 as money is emergent. We used to do barter because 0:11:08.880 --> 0:11:10.680 what we really want is the food or the goods 0:11:10.760 --> 0:11:12.880 or services, and we'd barter, but then we didn't have 0:11:13.240 --> 0:11:15.719 Um if if I didn't want my chick, if I 0:11:15.880 --> 0:11:17.199 didn't want your chicken, you don't want my goat, we 0:11:17.200 --> 0:11:19.240 didn't have a deal. So we used a medium of exchange. 0:11:19.280 --> 0:11:22.480 We trade this instead, and eventually enough things became used 0:11:22.520 --> 0:11:25.480 as a medium exchange where one thing emerged as the best, 0:11:25.520 --> 0:11:27.360 and of course that was gold. Gold was money for 0:11:27.400 --> 0:11:30.880 five thousand years. You have to have the right attributes 0:11:31.200 --> 0:11:33.439 for it to be a good form of money. So, 0:11:33.520 --> 0:11:36.960 for example, it needs to be portable, It needs to 0:11:37.000 --> 0:11:40.160 be durable, It needs to be divisible and needs to 0:11:40.200 --> 0:11:44.040 be salable. It needs to be fungible. Probably gonna spend 0:11:44.040 --> 0:11:45.720 a bunch of time breaking all of those things down, 0:11:46.600 --> 0:11:50.520 but durable makes sense, right if you used bananas for money, Well, 0:11:50.600 --> 0:11:52.640 within about five days, those bananas are rotten, So it 0:11:52.679 --> 0:11:54.400 wouldn't be a very good form of money. Any type 0:11:54.400 --> 0:11:56.000 of food wouldn't be a good form of money. It's 0:11:56.080 --> 0:11:59.480 it's not durable. It also needs to be divisible, so 0:11:59.520 --> 0:12:01.559 if it was a cow, a cow wouldn't really work 0:12:01.559 --> 0:12:04.120 because you can't really break a cow down into small pieces. 0:12:04.559 --> 0:12:07.319 It also needs to be fungible, which means one is 0:12:07.360 --> 0:12:10.640 always worth one. So for example, you've seen like the oldest, 0:12:10.720 --> 0:12:13.719 dirtiest dollar bill you've ever seen that has tears in it, 0:12:14.080 --> 0:12:17.360 um is still worth the same as one brand new 0:12:17.440 --> 0:12:21.720 crisp dollar bill. They're they're fungible. And so of course, uh, 0:12:21.840 --> 0:12:24.840 animals aren't fungible, right, things like that aren't fungible. Baseball 0:12:24.880 --> 0:12:29.000 cards aren't fungible. Um, which is and then and then finally, uh, 0:12:29.200 --> 0:12:32.079 we need to be sailable, so enough people have to 0:12:32.120 --> 0:12:34.240 be willing to take it, so it could have all 0:12:34.240 --> 0:12:35.720 those attributes. But if no one's willing to take it 0:12:35.720 --> 0:12:37.280 from you within, it's not a very good form of money. 0:12:37.920 --> 0:12:40.240 Um and and uh and that that kind of sums 0:12:40.240 --> 0:12:42.880 it up. And that's why gold really fit that bill. 0:12:42.960 --> 0:12:46.199 The problem with gold is not real portable. Now I 0:12:46.200 --> 0:12:47.920 can put gold coins in my pocket and you and 0:12:47.920 --> 0:12:51.600 I can exchange. That's fine. But in the information age, 0:12:51.800 --> 0:12:55.080 gold doesn't work. I can't send you gold over zoom 0:12:55.120 --> 0:12:58.199 and so, um, it didn't work. Actually gold failed along 0:12:58.080 --> 0:13:02.880 longer before that, and it failed because it's not portable. 0:13:03.320 --> 0:13:07.400 And this is an important piece to understand. So, um gold, 0:13:08.040 --> 0:13:10.199 because it wasn't portable, I needed to pay somebody. I'm 0:13:10.200 --> 0:13:13.840 in New York, somebody's in Germany in the four hundreds, 0:13:13.920 --> 0:13:16.320 or what do we do? Well, we don't really have 0:13:16.360 --> 0:13:18.000 a deal. And what we could do is we could 0:13:18.000 --> 0:13:19.400 put a bunch of gold on ships and we could 0:13:19.400 --> 0:13:21.880 sell it across the Atlantic. But then the ship's crash 0:13:21.960 --> 0:13:24.719 and they get taken over by pirates and all that. 0:13:24.760 --> 0:13:27.719 So that's not very that's not very very good. So 0:13:27.880 --> 0:13:31.839 what did we do? How did we solve that? Um? Now, 0:13:31.880 --> 0:13:35.959 real quick? That would be what we would consider commodity money. 0:13:36.120 --> 0:13:38.720 So commodity money would typically being that there's a there's 0:13:38.720 --> 0:13:41.000 an evolution, and this is a big piece that people miss. 0:13:41.360 --> 0:13:44.319 There's an evolution to this, and so a lot of 0:13:44.320 --> 0:13:47.400 people are very quick to dismiss new things today because 0:13:47.440 --> 0:13:50.800 I don't know, it's it's not that today. So bitcoin 0:13:50.920 --> 0:13:53.720 isn't the best medium exchange day it's too volatile. Okay, 0:13:53.760 --> 0:13:55.440 well maybe that's today, But does that mean it will 0:13:55.520 --> 0:13:58.400 always be that way? Um? If we saw a little 0:13:58.440 --> 0:14:01.640 oak tree in the forest, UM, and I said, hey, 0:14:01.679 --> 0:14:03.280 imagine this oak tree is gonna be a harder foot 0:14:03.320 --> 0:14:04.760 one day, and you're like, no way, look how small 0:14:04.800 --> 0:14:07.240 it is. I'm like, but it has the attributes. It's 0:14:07.320 --> 0:14:09.560 it's an oak tree. But no, it can never be 0:14:09.600 --> 0:14:12.360 that way. But you have to understand things can evolve, UM. 0:14:12.400 --> 0:14:15.120 And so things will typically evolve starting with a collectible. 0:14:15.120 --> 0:14:17.840 Hey this is pretty cool. It's collectible. Let's collect it, right. 0:14:17.880 --> 0:14:20.560 It's a cool it's a shiny rock, it's a cool feather. Um. 0:14:20.600 --> 0:14:23.720 And then eventually things can become stores of value where 0:14:23.760 --> 0:14:25.960 if enough people collect them, then we store wealth there. 0:14:26.160 --> 0:14:28.160 And you see that with rich people today they store 0:14:28.200 --> 0:14:31.840 their wealth in um collectible cars or or paintings or 0:14:31.840 --> 0:14:35.280 things like that. UM. And then um, eventually it could 0:14:35.320 --> 0:14:38.360 evolve into a medium of exchange, but only if it 0:14:38.440 --> 0:14:41.240 has those qualities that I've given you before. Now, a 0:14:41.320 --> 0:14:44.880 Mona Lisa painting is a collectible. UM. That has become 0:14:44.880 --> 0:14:47.200 a store of value. People are putting their value into 0:14:47.200 --> 0:14:49.920 those things, but it can't really become a medium exchange 0:14:49.920 --> 0:14:52.320 because it doesn't have the money properties. It's not divisible, 0:14:53.120 --> 0:14:56.520 it's not portable, right, it makes sense, it's not fungible. Well, 0:14:56.600 --> 0:14:59.160 there's only one mona Lisa painting, um, so it's it 0:14:59.200 --> 0:15:02.000 doesn't have the in this quality, so it stops evolving there. 0:15:02.360 --> 0:15:05.600 And it's important to understand that we've had commodity money 0:15:05.600 --> 0:15:07.840 in the past, So commodity would mean that it has 0:15:07.880 --> 0:15:11.320 to be something that's useful or needed, and so gold 0:15:11.560 --> 0:15:14.120 was used for electronics, right, there was a need. You're 0:15:14.120 --> 0:15:16.840 gonna listen to people like Peter Schiff tell you that 0:15:17.360 --> 0:15:21.320 gold has intrinsic value. There's intrinsic value. Their money must 0:15:21.400 --> 0:15:24.640 have intrinsic value. And I'm surprised that Peter Shift says 0:15:24.680 --> 0:15:28.040 that because he's a very strong Austrian economist, um, and 0:15:28.040 --> 0:15:30.760 he should understand that there is no such thing as 0:15:30.880 --> 0:15:35.760 intrinsic value. That all value is subjective. All value subjective. 0:15:36.760 --> 0:15:38.720 If I had a billion dollars of gold, but I 0:15:38.760 --> 0:15:40.480 was on a deserted island and I had no boat, 0:15:40.520 --> 0:15:43.520 no phone, no food, no water, nowhere to spend the money. 0:15:43.560 --> 0:15:47.760 That gold is worthless. It's completely worthless to me. As 0:15:47.760 --> 0:15:49.480 a matter of fact, it could be a liability because 0:15:49.520 --> 0:15:50.880 now how do I even carry that around on the 0:15:50.880 --> 0:15:53.400 deserted island, So it's worth it's worth nothing to me. 0:15:53.440 --> 0:15:56.440 There's no intrinsic value to it. Now you might say, 0:15:56.480 --> 0:15:58.720 well food, Then food would have intrinsic value, because if 0:15:58.720 --> 0:16:00.080 you had it on the deserted island, that food to 0:16:00.080 --> 0:16:02.920 be worth a lot. Yes, But last night at dinner, 0:16:03.120 --> 0:16:06.400 I threw my leftovers away. That food had no value 0:16:06.400 --> 0:16:11.720 to me, see what I'm saying. So it's all subjective. Now, um, 0:16:11.760 --> 0:16:16.480 you know, for those leftovers, if I was hungry, I mean, 0:16:16.640 --> 0:16:19.760 if I was really hungry, maybe to be worth money 0:16:19.880 --> 0:16:21.280 less than what it would cost me to go buy 0:16:21.320 --> 0:16:23.600 the full meal. So let's say I was a homeless 0:16:23.640 --> 0:16:26.400 you know, homeless or whatever, and it's a thirty dollar steak. 0:16:26.440 --> 0:16:28.600 Maybe I'll pay five bucks for a piece of that steak. 0:16:29.200 --> 0:16:31.520 But if I was on that deserted island and there 0:16:31.560 --> 0:16:34.200 was that piece of steak, I would give my entire 0:16:34.280 --> 0:16:39.480 life savings for that. So again, value is subjective. Hopefully 0:16:39.480 --> 0:16:43.359 that makes sense and you have to understand that. Uh, 0:16:43.720 --> 0:16:46.760 and because of what we have today. So money started 0:16:46.760 --> 0:16:51.240 out as commodity money gold, it had value, and then 0:16:51.280 --> 0:16:56.120 it had money no as properties, durable, portable, divisible, etcetera. 0:16:56.280 --> 0:16:59.640 But then something changed. And this is the key piece 0:16:59.640 --> 0:17:02.080 to under stand, because if you can understand this key piece, 0:17:02.400 --> 0:17:06.000 then you can understand the revolution that we have today. 0:17:06.119 --> 0:17:09.560 More importantly, you can understand what we're going to need 0:17:09.640 --> 0:17:12.399 to transform the world. This is a very key piece. 0:17:13.160 --> 0:17:17.000 And what is that, Well, that's the portability peace. So 0:17:17.359 --> 0:17:19.320 we live in the information age today. We don't live 0:17:19.320 --> 0:17:21.520 in the physical agent anymore. And like I said, we 0:17:21.640 --> 0:17:24.199 use zoom. I can't send you money over zoom. So 0:17:24.240 --> 0:17:28.640 in order to get that gold or any any commodity 0:17:28.640 --> 0:17:31.879 of money for that matter, to become more portable, we 0:17:31.960 --> 0:17:34.520 had to do something to make it have more velocity. 0:17:34.520 --> 0:17:37.000 You've heard this term velocity of money. So in order 0:17:37.040 --> 0:17:40.240 to get this velocity of this money, we had to 0:17:40.280 --> 0:17:43.800 do something. But that is the crux of the problem. 0:17:43.840 --> 0:17:47.120 That's where everything comes off the rails. So I'm gonna 0:17:47.119 --> 0:17:49.360 explain that to you and more so you can understand 0:17:49.440 --> 0:17:51.640 what what's wrong with our money and what we need 0:17:51.680 --> 0:17:53.879 to solve this thing. I'll explain that to you and more. 0:17:53.920 --> 0:17:55.800 You listen to the Markmas Show. By the way, we're 0:17:55.800 --> 0:17:58.359 talking about the decentralized revolution. We're talking about the way 0:17:58.359 --> 0:18:00.560 the world is changing through the lens of politics, finance, 0:18:00.680 --> 0:18:04.840 and technology. Of course, we're talking about bitcoin, and we're 0:18:04.840 --> 0:18:06.919 talking about money today, what it is, so you can 0:18:07.000 --> 0:18:09.520 understand that, you can formulate your own ideas off of it, 0:18:09.920 --> 0:18:12.280 so you're not walking around like a mindless parent party 0:18:12.280 --> 0:18:14.040 and everybody else's thoughts. I'll be right back with that 0:18:14.080 --> 0:18:16.439 and more in a minute. Don't go away, all right, 0:18:16.480 --> 0:18:19.280 welcome back. You are listening to the markma Show, always 0:18:19.320 --> 0:18:22.080 talking to you about the decentralized revolution, talking about the 0:18:22.080 --> 0:18:24.879 way the world is breaking apart and changing right before 0:18:24.880 --> 0:18:27.520 our eyes, which of course is important to understand what 0:18:27.560 --> 0:18:30.000 the heck is going on today more importantly, so you 0:18:30.040 --> 0:18:32.160 know what comes next, and of course we're talking about 0:18:32.160 --> 0:18:37.120 it through the lens of politics, finance, and technology. Of course, 0:18:37.119 --> 0:18:41.359 we're also talking about bitcoin. As you might imagine. Now 0:18:41.480 --> 0:18:44.800 we're talking about money so you can understand the problems 0:18:44.800 --> 0:18:46.840 that we have today and formulate your own ideas off 0:18:46.840 --> 0:18:48.439 of that. We went through a bunch I'm not going 0:18:48.480 --> 0:18:50.840 to recap it. If you've missed it, don't worry. I 0:18:50.920 --> 0:18:53.199 got your back because you can catch me on demand. 0:18:53.320 --> 0:18:57.080 Just search Mark Moss podcast. Find me on any of 0:18:57.119 --> 0:19:00.240