WEBVTT - The Real Reason Your Money Keeps Losing Value | Parker Lewis 0:00:00.120 --> 0:00:02.320 The real economy is broken because of the printing of 0:00:02.360 --> 0:00:06.080 money that it distorts the actual operation of money, the 0:00:06.160 --> 0:00:09.440 function of money, the price signals of money. Your money 0:00:09.480 --> 0:00:11.680 is losing its value. The printing of money is the problem. 0:00:11.760 --> 0:00:14.120 Bitcoin is money that can't be printed. It's the solution 0:00:14.200 --> 0:00:17.160 for that problem, and it's expressly built to solve them. 0:00:17.200 --> 0:00:20.319 It's fixed supply is the source of all fundamental value 0:00:20.360 --> 0:00:22.680 in bitcoin. It will only ever be twenty one million detcoin. 0:00:22.840 --> 0:00:24.880 It's volatle for the reason that has a fixed apply 0:00:24.920 --> 0:00:27.440 and that everyone's adopting bitcoin for the first time. It's 0:00:27.600 --> 0:00:29.880 naturally volatile, it's necessarily. 0:00:29.280 --> 0:00:32.600 Valt So the volatility is there, the price of bitcoin 0:00:32.720 --> 0:00:34.840 going up and down. I think that's a good thing. 0:00:35.000 --> 0:00:37.720 But in regards to like being in media a stable 0:00:37.760 --> 0:00:40.640 medium exchange today, maybe it's not. So how do we 0:00:40.640 --> 0:00:43.600 think about the volatility, as you said, in regards to 0:00:43.680 --> 0:00:45.839 payments today versus like an evolution of. 0:00:45.840 --> 0:00:48.560 That great question? 0:00:48.680 --> 0:00:54.520 So, so, Parker, you said that bitcoin is the most 0:00:54.520 --> 0:00:58.480 important innovation in the world. Why should someone listening to 0:00:58.480 --> 0:01:01.400 start this out maybe scaled on the fence. Why should 0:01:01.400 --> 0:01:04.440 they right now be dropping everything and paying attention to bitcoin? 0:01:04.800 --> 0:01:08.760 I think oftentimes people look at bitcoin as a solution 0:01:09.400 --> 0:01:14.720 in search of a problem, and that the reality of 0:01:14.760 --> 0:01:18.720 the situation is that people do not understand the problem 0:01:18.760 --> 0:01:21.640 that they have. They might know that they have problems, 0:01:21.880 --> 0:01:24.200 but they might not know the root cause of it 0:01:24.360 --> 0:01:26.720 or the source of it, and that, in my view, 0:01:27.040 --> 0:01:30.640 the most pressing problem that everyone is suffering is that 0:01:31.400 --> 0:01:35.600 their money is constantly being debased, and that bitcoin is 0:01:35.600 --> 0:01:40.600 the solution to that problem, and that they're seeking out 0:01:40.400 --> 0:01:43.920 somewhere on the range of imperfect solutions to bad solutions 0:01:44.319 --> 0:01:48.080 for the problem because they misunderstand it, and that bitcoin 0:01:48.240 --> 0:01:51.680 solves the most important problem for the greatest number of 0:01:51.720 --> 0:01:55.840 people on Earth, and it's still very early and not 0:01:55.960 --> 0:02:00.320 well understood, and that once they figure out bitcoin coin 0:02:00.600 --> 0:02:04.320 and they can also most efficiently go down that rabbit 0:02:04.360 --> 0:02:08.360 hole because it might be complicated, it might be unintuitive 0:02:08.400 --> 0:02:11.440 at first, but it's a finite surface area, and all 0:02:11.560 --> 0:02:14.280 the other derivative problems that they might perceive in their 0:02:14.320 --> 0:02:18.760 life stem from in most circumstances, maybe not all circumstances, 0:02:18.880 --> 0:02:21.560 but in most circumstances at least from a financial perspective, 0:02:21.560 --> 0:02:24.799 because their money is constantly losing value, and so all 0:02:24.880 --> 0:02:29.239 the time and energy they're putting in to accumulate money 0:02:29.320 --> 0:02:31.400 or to acquire money to pay for various things in 0:02:31.440 --> 0:02:34.840 their life is being destroyed. And biitwin fixes that. 0:02:35.120 --> 0:02:37.640 The biggest problem in the world. It fixes And so 0:02:37.680 --> 0:02:39.280 when you solve a big problem for a lot of people, 0:02:39.280 --> 0:02:41.600 there's a lot of value created. Let's just push on 0:02:41.680 --> 0:02:43.840 that for a second, because what you're saying is it 0:02:43.880 --> 0:02:45.519 solves the biggest problem for the most people, which is 0:02:45.520 --> 0:02:47.239 their money is losing values. They have to work harder 0:02:47.280 --> 0:02:49.519 and harder to maintain their life. But do you think 0:02:49.560 --> 0:02:53.560 most people, when we talk broadly the masses, understand that, Like, 0:02:53.720 --> 0:02:55.320 do they see that as a problem. 0:02:56.200 --> 0:02:59.840 They see it as a problem, but they don't understand 0:03:00.160 --> 0:03:04.840 extent of it. I'd say most people are engineered to 0:03:04.960 --> 0:03:10.400 know that their money loses value, so they try to 0:03:10.480 --> 0:03:15.639 address it on the margin. They invest in the equity 0:03:15.720 --> 0:03:20.080 markets to offset inflation, or they invest in real estate 0:03:20.160 --> 0:03:24.880 passively to offset the problem. And one of the things 0:03:24.960 --> 0:03:26.560 I like say is like, Hey, if there's a business 0:03:26.560 --> 0:03:29.680 that needs to be funded that is going to deliver 0:03:30.240 --> 0:03:32.480 a lot of value in the world, those businesses still 0:03:32.520 --> 0:03:35.000 need to be funded. If you dig up dirt and 0:03:35.040 --> 0:03:37.440 build a piece of real estate that delivers value like 0:03:37.520 --> 0:03:41.600 that is a necessary piece of equation because ultimately money 0:03:42.200 --> 0:03:45.600 is helping to facilitate exchange and to deliver real goods 0:03:45.640 --> 0:03:48.200 and services to the world, which is really what improves 0:03:48.200 --> 0:03:51.920 people's lives. But in the circumstance where people know that 0:03:51.920 --> 0:03:56.000 their money loses value but not knowing why or that 0:03:56.080 --> 0:03:58.200 it ends a lot worse than they think that it's 0:03:58.240 --> 0:04:00.760 not just their money losing too per a year, three 0:04:00.800 --> 0:04:04.800 percent or five percent that ultimately stops working. And there's 0:04:05.040 --> 0:04:08.880 there's plenty of historical evidence, and there's also a fundamental 0:04:08.920 --> 0:04:12.200 underpinning it that humans can't work and convert their time 0:04:12.240 --> 0:04:15.480 and energy into something that can be easily produced money 0:04:15.480 --> 0:04:17.800 being created at thin air. That it's that they know 0:04:17.880 --> 0:04:20.920 there's a problem, they just don't know the root of it, 0:04:21.120 --> 0:04:26.040 or the extent of it, or how negatively asymmetric. The 0:04:27.240 --> 0:04:31.280 end consequence of money being debased really is, I. 0:04:31.200 --> 0:04:34.600 Would just go step further. I think most people see 0:04:34.760 --> 0:04:39.080 prices going up and things keep getting more expensive, and 0:04:39.120 --> 0:04:41.040 so if I don't invest, how will I buy them 0:04:41.080 --> 0:04:43.800 in the future, Which is the same thing as you're saying, 0:04:43.880 --> 0:04:47.200 But it's the opposite side. Right, the money is being debased, 0:04:47.200 --> 0:04:49.279 it's losing value, which is why prices are going up. 0:04:49.320 --> 0:04:51.440 But they don't see the money being debased and going down. 0:04:51.520 --> 0:04:52.840 They just see the prices going up. 0:04:53.240 --> 0:04:55.760 Yeah, safety and amuse. The author of the Bitcoin Center 0:04:55.839 --> 0:05:00.760 has a great quote that I consistently see circul We're saying, 0:05:00.839 --> 0:05:03.800 the groceries aren't getting more expensive. Your your money's losing 0:05:03.839 --> 0:05:05.560 its value, right, and it's the other side of the 0:05:05.560 --> 0:05:09.160 same coin. But it's really important framing to shift your 0:05:09.200 --> 0:05:12.479 perspective in your understanding of the root problem. 0:05:12.600 --> 0:05:15.640 Right. And we saw in the last election that we 0:05:15.720 --> 0:05:19.480 just had where Trump won and inflation was probably one 0:05:19.520 --> 0:05:22.479 of the one of the hottest subjects going But people 0:05:22.480 --> 0:05:24.960 aren't really understanding that the root cause of this inflation 0:05:25.080 --> 0:05:27.960 or as they see CPI going up and so yeah, 0:05:28.080 --> 0:05:31.240 so not understanding the problem at hand. That's the number 0:05:31.240 --> 0:05:33.240 one obstacle to bitcoin. They think of it as a 0:05:33.240 --> 0:05:36.240 solution looking for a problem because they don't realize the 0:05:36.279 --> 0:05:39.040 problem is that the reason why your life keep getting 0:05:39.080 --> 0:05:41.480 more expensive is that your money's losing value. 0:05:41.640 --> 0:05:44.600 Or connecting it to bitcoin, that bitcoin's a solution to that. 0:05:44.680 --> 0:05:48.839 Right, Yeah, yeah, yeah, got it. So, you know, you 0:05:49.000 --> 0:05:50.960 used to write a lot. You've still been writing some stuff. 0:05:50.960 --> 0:05:52.240 I want to talk about some of the stuf you're written, 0:05:52.279 --> 0:05:55.320 But the big one is that gradually then suddenly, which 0:05:55.360 --> 0:05:58.119 is amazing, and you sort of took like a first 0:05:58.160 --> 0:06:03.320 principles approach to sort of explaining bitcoin. How would you 0:06:03.360 --> 0:06:05.719 put that into maybe like a three step framework for 0:06:05.760 --> 0:06:08.360 people to like think about and then maybe go dig 0:06:08.400 --> 0:06:09.800 into and research more from there. 0:06:10.400 --> 0:06:15.039 Yeah, So the three things are the problem the bitcoin's 0:06:15.200 --> 0:06:17.760 actually solving. That's that is not a solution in search 0:06:17.760 --> 0:06:20.040 of a problem. That it's an express solution to an 0:06:20.040 --> 0:06:22.279 express problem, and the problem is printing of money. 0:06:22.440 --> 0:06:24.360 So start there, start there. 0:06:24.880 --> 0:06:27.279 You have a problem. You know, one of the things 0:06:27.279 --> 0:06:29.840 that you just mentioned is in the last selection, it's 0:06:29.880 --> 0:06:34.240 in the United States, inflation was a big focus area. 0:06:35.240 --> 0:06:38.720 I never saw one politician who was talking about it 0:06:39.400 --> 0:06:43.039 on the stump. Connecting it to the printing of money. 0:06:43.600 --> 0:06:45.440 The printing of money is the source of that. You 0:06:45.480 --> 0:06:48.320 have a problem. The printing of money is the problem. 0:06:49.360 --> 0:06:51.719 Bitcoin is money that can't be printed. It's the solution 0:06:51.839 --> 0:06:55.240 for that problem, and it's expressly built to solve it. 0:06:56.480 --> 0:07:01.000 So connecting it to the problem is one frame. The 0:07:01.040 --> 0:07:06.080 second framework is understanding bitcoin from a bottom up perspective 0:07:06.920 --> 0:07:10.400 as to why it actually solves the problem and how. 0:07:10.960 --> 0:07:14.920 And the quick high level of that is that it's 0:07:14.960 --> 0:07:19.120 fixed supply is the source of all fundamental value in bitcoin. 0:07:19.160 --> 0:07:21.560 There will only ever be twenty one million bitcoin. What 0:07:21.680 --> 0:07:25.360 it represents is money that can't be printed, and that 0:07:26.000 --> 0:07:29.800 how Bitcoin is able to enforce its fixed supply is 0:07:29.800 --> 0:07:34.840 of significant consequence to the equation that it is not random, 0:07:34.880 --> 0:07:38.720 it's not by happenstance. It might be complicated or complex. 0:07:39.240 --> 0:07:41.400 There's a lot underneath the hood, but you first have 0:07:41.480 --> 0:07:44.600 to understand why it's relevant, why a form of money 0:07:44.680 --> 0:07:46.920 that can't be printed would be relevant to somebody. To 0:07:46.960 --> 0:07:49.480 then be able to go down and connect the dots 0:07:49.480 --> 0:07:52.680 as to how the economic incentives are able to be 0:07:53.000 --> 0:07:56.120 held together. S has to Bitcoin incredibly enforce its fixed 0:07:56.120 --> 0:08:00.560 supply without the need for trust. So that's the second thing, 0:08:00.960 --> 0:08:05.680 And then the third framework is all the common misconceptions 0:08:05.720 --> 0:08:10.000 about bitcoin, which are that it's too volatile to be money, 0:08:10.160 --> 0:08:13.760 or that it can be easily copied, or that it's 0:08:13.840 --> 0:08:17.640 just for criminals, which just for criminals is becoming less 0:08:17.640 --> 0:08:21.000 of a of a knock on bitcoin. As governments around 0:08:21.040 --> 0:08:23.480 the world and corporations around the world are adopting it 0:08:23.480 --> 0:08:27.120 as money, it's becoming more difficult for somebody to posit that. 0:08:27.640 --> 0:08:33.520 But basically understanding things that are difficult to see. If 0:08:33.520 --> 0:08:36.240 you could say, hey, it would make sense that if 0:08:36.280 --> 0:08:38.320 there were a form of money that can't be printed, 0:08:38.400 --> 0:08:42.640 that everyone would adopt it, adopt it. But how does 0:08:42.679 --> 0:08:45.640 that marry with the fact that bitcoin goes up ten 0:08:45.679 --> 0:08:48.320 percent in a day or down. That doesn't That's not 0:08:48.440 --> 0:08:50.920 how I have known or you know, I say I. 0:08:51.080 --> 0:08:53.880 But the person that's evaluating it might look and say, well, 0:08:53.920 --> 0:08:57.000 bitcoin can't be money for that reason. And in reality, 0:08:57.480 --> 0:09:00.120 if you realize that it's volatile for the reason and 0:09:00.160 --> 0:09:02.480 that has a fixed apply, and that everyone's adopting bitcoin 0:09:02.520 --> 0:09:05.800 for the first time, it's naturally volatile. It's necessarily volatile. 0:09:05.800 --> 0:09:09.000 So people have to work through those mental blocks in 0:09:09.120 --> 0:09:12.920 order to come back to the highest level ideas behind 0:09:12.960 --> 0:09:16.760 bitcoin to see how they're consistent with each other and 0:09:16.840 --> 0:09:21.760 not inconsistent. So the problem the fundamentals the bottom up, 0:09:21.840 --> 0:09:25.640 and then the common questions that are logical to ask 0:09:25.720 --> 0:09:29.640 but have coherent, consistent explanations. 0:09:30.440 --> 0:09:34.080 So let's dig into the volatility and why it can't 0:09:34.080 --> 0:09:38.240 be money. So obviously with you work on bitcoin payments, 0:09:38.280 --> 0:09:40.440 that's sort of your life right now with zapp, right, 0:09:40.920 --> 0:09:42.040 So I want to dig into that. I want to 0:09:42.040 --> 0:09:44.679 talk about stable coins and the Genius Act and maybe 0:09:44.720 --> 0:09:47.599 how that compliments or doesn't compliment bitcoin. But let's just 0:09:47.640 --> 0:09:50.000 talk about the payments piece overall, and we'll talk about 0:09:50.000 --> 0:09:54.960 those things. So the volatility is there the price of 0:09:54.960 --> 0:09:58.199 bitcoin going up and down. I think that's a good thing. 0:09:58.400 --> 0:10:01.120 But in regards to like being a media a stable 0:10:01.160 --> 0:10:06.160 medium exchange today, maybe it's not. So there's today and 0:10:06.200 --> 0:10:09.199 there's a future, so like will it ever be versus 0:10:09.440 --> 0:10:11.600 the best today? So how do we think through that? 0:10:11.679 --> 0:10:17.160 Because if I want to, if I'm in a country 0:10:17.320 --> 0:10:20.160 with a failing currency and I could maybe go to 0:10:20.200 --> 0:10:22.120 the dollar, I could go to bitcoin, but I don't 0:10:22.160 --> 0:10:23.679 have that much money. And if I go to buy 0:10:23.720 --> 0:10:25.720 groceries next week but I can't buy as much, that 0:10:25.720 --> 0:10:27.560 could be a problem. So how do we think about 0:10:27.840 --> 0:10:31.800 the volatility, as you said, in regards to payments today 0:10:31.880 --> 0:10:33.360 versus like an evolution of that. 0:10:35.080 --> 0:10:40.080 Great question? So one I think that to start, you 0:10:40.160 --> 0:10:42.839 have to understand why bit coin's volatile. You have to 0:10:42.920 --> 0:10:49.160 understand why it's volatile and why volatility is not a risk. 0:10:50.600 --> 0:10:54.000 And when I say that is that volatility can be 0:10:54.080 --> 0:10:56.960 a risk depending on what your time horizon is right, 0:10:57.480 --> 0:11:01.000 And so you have to be able to explains yourself 0:11:01.080 --> 0:11:06.880 first why bitcoin would store value over time despite being volatile, 0:11:06.920 --> 0:11:11.600 that it's volatility is actually to your benefit that you know. 0:11:11.960 --> 0:11:13.600 One way I would think about it is if only 0:11:13.640 --> 0:11:17.800 one percent of the world has any material exposure to bitcoin, 0:11:18.520 --> 0:11:22.640 and if you marry that with this idea that everyone 0:11:22.679 --> 0:11:25.080 in the world, if they understood that there were a 0:11:25.080 --> 0:11:28.040 form of money that can't be printed in that bitcoin 0:11:28.120 --> 0:11:30.080 is that, and that it's fixed supply of twenty one 0:11:30.120 --> 0:11:33.120 million is credible that ninety nine percent of the world 0:11:33.240 --> 0:11:35.640 is yet to adopt it, but they would adopt it 0:11:35.640 --> 0:11:38.199 for the very same reason that someone would who's already 0:11:38.240 --> 0:11:42.360 adopted it. Understood that it holds value because more of 0:11:42.400 --> 0:11:45.640 it can't be created, but it's also necessarily volatile. If 0:11:45.679 --> 0:11:49.240 one percent of the world has figured this out, well, 0:11:49.600 --> 0:11:52.000 if ten percent were to figure it out, then that 0:11:52.080 --> 0:11:54.440 means that nine out of every ten people in the 0:11:54.480 --> 0:11:57.000 world that are buying bitcoin for the first time are 0:11:57.040 --> 0:12:00.440 pricing bitcoin, are putting a value on it the first 0:12:00.480 --> 0:12:03.520 time in their life. Right, Well, if more can't be created, 0:12:03.760 --> 0:12:07.319 there has to be price discovery, right. That price discovery 0:12:07.360 --> 0:12:10.240 is naturally volatile. But the volatility for people who already 0:12:10.240 --> 0:12:13.440 hold it is a benefit because if ten times the 0:12:13.520 --> 0:12:15.600 number of people are demanding an asset, even if they're 0:12:15.640 --> 0:12:19.120 pricing it for the first time, are having to bid 0:12:19.120 --> 0:12:23.360 the price up to deliver value to people that already 0:12:23.360 --> 0:12:25.839 do hold it. Again, that is in your benefit. So 0:12:25.960 --> 0:12:28.000 first you have to anchor to that fundamental that is 0:12:28.080 --> 0:12:31.600 volatile for the very same reason of why someone would 0:12:31.600 --> 0:12:33.160 demand it in the first place, and that that is 0:12:33.200 --> 0:12:35.080 connected to its ability to store value. 0:12:35.920 --> 0:12:38.480 Let me hind on that. So, because it's a fixed 0:12:38.480 --> 0:12:40.840 supply and we have more people coming in and maybe 0:12:40.840 --> 0:12:42.280 something going down, I mean there's EBB and flow a 0:12:42.320 --> 0:12:44.920 little bit, so we get price moving up and down 0:12:44.960 --> 0:12:47.840 price volatility because of that. Now, if we look at 0:12:47.840 --> 0:12:50.440 the long lens of bitcoin, the price volatility moves to 0:12:50.480 --> 0:12:53.200 the upside, and so as an investor, we want the 0:12:53.200 --> 0:12:54.599 price to go up, right, We don't want to be 0:12:54.640 --> 0:12:56.319 in the stable poin that never moves, and so that 0:12:56.400 --> 0:12:58.920 volatility is our advantage. It's a necessary good. I think 0:12:58.960 --> 0:13:02.600 it's the point that you're making. Yes, right, So it's volatile, 0:13:02.640 --> 0:13:06.880 but volataile tipside, we like that, but depends on the 0:13:06.960 --> 0:13:08.400 duration correct. 0:13:08.440 --> 0:13:10.439 So then the way that I would think about that 0:13:10.559 --> 0:13:13.600 is and it is this difficult problem. If you have 0:13:13.679 --> 0:13:21.000 no savings and you are barely saving more than like 0:13:21.120 --> 0:13:23.640 when I say no savings, you have no Yeah, if 0:13:23.640 --> 0:13:28.440 your paycheck to paycheck and bitcoin is volatile, then you 0:13:28.600 --> 0:13:33.280 still have to figure out how to get savings. And 0:13:33.920 --> 0:13:38.320 the form of money that can't be printed is going 0:13:38.400 --> 0:13:41.040 to store your value best over time, but you have 0:13:41.120 --> 0:13:44.200 to get to that point in time. And so it 0:13:44.280 --> 0:13:48.360 becomes the identical equation of saying like, okay, I first 0:13:48.400 --> 0:13:51.600 have to produce more than I consume and then I 0:13:51.640 --> 0:13:55.679 have to start saving a small percentage. And bitcoins is 0:13:55.760 --> 0:14:00.840 that as it's volatile, it doesn't put me back in 0:14:00.880 --> 0:14:06.160 that negative position of being paycheck to paycheck. So another 0:14:06.200 --> 0:14:07.800 way to say it is someone that has a lot 0:14:07.800 --> 0:14:10.880 of savings can more easily adopt bitcoin than someone that 0:14:10.880 --> 0:14:15.000 has no savings at all. But everyone has to accumulate 0:14:15.080 --> 0:14:17.880 savings to get out of that rat race. To get 0:14:17.920 --> 0:14:21.200 out of living paycheck to paycheck. So it becomes a 0:14:21.200 --> 0:14:23.200 world to say, well, hey, maybe you need to have 0:14:23.760 --> 0:14:26.960 enough dollars or a stap quote stable coin that might 0:14:27.000 --> 0:14:31.080 be losing its value slowly but is maintaining its value 0:14:31.600 --> 0:14:34.320 day to day better saying I need to cover myself 0:14:34.360 --> 0:14:37.040 for a month or two months or three months to 0:14:37.120 --> 0:14:41.880 have that security buffer, but then saying well, anything that 0:14:42.280 --> 0:14:45.560 is more than three months, I need to be exposed 0:14:45.560 --> 0:14:50.440 to the asset that stores value over time. And so 0:14:50.480 --> 0:14:54.880 it's marrying the short term needs with the long term 0:14:54.920 --> 0:14:59.120 benefits and such that someone that has no savings realistically 0:14:59.160 --> 0:15:01.200 like they still need to be saving and bitcoin, but 0:15:01.560 --> 0:15:03.560 it might be able to have a smaller percentage because 0:15:04.040 --> 0:15:08.080 their personal working capital is non existent and they need 0:15:08.080 --> 0:15:10.920 to build that up. And so they still have the 0:15:10.960 --> 0:15:13.600 problem and there's no easy way out of it. But 0:15:13.680 --> 0:15:17.520 it becomes a function of each month saving more than 0:15:17.560 --> 0:15:23.080 you than you spend and putting a small amount away. 0:15:23.120 --> 0:15:27.120 But now somebody that has a lot of savings that 0:15:27.760 --> 0:15:31.040 doesn't have, you know, a working capital need of six 0:15:31.080 --> 0:15:34.880 months or a year that then they start looking at 0:15:34.920 --> 0:15:38.680 the equations saying, hey, if I have this in cash 0:15:39.120 --> 0:15:41.440 and in a form of money that loses value, that's 0:15:41.480 --> 0:15:44.960 engineered to lose value. I need to be thinking longer 0:15:45.000 --> 0:15:47.680 than just a month or two months or three months. 0:15:47.680 --> 0:15:49.880 I need to be thinking about a year or ten years, 0:15:50.040 --> 0:15:51.840 and the more that you can save an asset that's 0:15:51.920 --> 0:15:56.200 volatile but stores value better than anything else for very 0:15:56.240 --> 0:16:00.560 logical reasons that everyone needs money, everyone needs set money, 0:16:00.720 --> 0:16:03.280 and people are adopting bitcoin for that reason. Then it 0:16:03.320 --> 0:16:08.280 becomes a kind of time horizon and managing short term 0:16:08.360 --> 0:16:11.960 volatility for the benefit of long term purchasing power. 0:16:12.920 --> 0:16:16.000 So to summarize that, then we have to understand that 0:16:16.280 --> 0:16:21.600 both dollars and bitcoin are both volatile price moves, but 0:16:21.840 --> 0:16:24.800 bitcoin is more volatile to the upside, whereas the dollar 0:16:24.920 --> 0:16:28.840 is just always constantly vaulted to the downside. So we 0:16:28.880 --> 0:16:31.400 want to look at those over different time horizons, where 0:16:31.680 --> 0:16:33.440 think of it as a checking in the savings and 0:16:33.440 --> 0:16:36.000 a little bit And depending on my time horizons and 0:16:36.000 --> 0:16:38.120 the amount of money that I make, then I want 0:16:38.160 --> 0:16:41.200 to be storing in the more volatile asset because it 0:16:41.240 --> 0:16:43.800 holds value better over longer periods of time, But I 0:16:43.880 --> 0:16:45.480 might be willing to put a little bit into the 0:16:45.560 --> 0:16:48.400 less volatile asset that holds value better in a short 0:16:48.440 --> 0:16:49.320 period of time. 0:16:49.320 --> 0:16:52.480 Right, Yeah, correctly, So you know, I always try to 0:16:52.520 --> 0:16:54.400 use it to a tangible examples like, hey, if I 0:16:54.400 --> 0:16:59.239 need to go buy beef at the grocery store tomorrow 0:16:59.440 --> 0:17:01.720 or over the next week, and there's a possibility that 0:17:01.720 --> 0:17:03.960 bitcoin drops by ten percent and I can't then go 0:17:04.000 --> 0:17:06.200 buy the amount of beef that I need, I haven't 0:17:06.200 --> 0:17:08.480 solved my problem. But if I know that the price 0:17:08.520 --> 0:17:10.800 of beef, you know, looking at ground beef, if it 0:17:10.840 --> 0:17:12.679 goes from six dollars a pound to ten dollars a 0:17:12.680 --> 0:17:17.600 pound to fifteen dollars a pound, that I need beef 0:17:17.600 --> 0:17:22.119 in six months too. And if I'm just saving in 0:17:22.160 --> 0:17:24.920 this form of money, that is the other side of 0:17:24.960 --> 0:17:28.119 that same coin, which we discussed before, like your your 0:17:28.119 --> 0:17:31.080 groceres aren't getting more expensive, your money is losing value. 0:17:31.080 --> 0:17:33.120 That you need beef next week, but you also need 0:17:33.160 --> 0:17:35.600 beef in six months. If you do the same thing 0:17:36.160 --> 0:17:38.040 for the next week that you're trying to solve for 0:17:39.000 --> 0:17:41.840 in six months or a year, you're gonna end up 0:17:42.119 --> 0:17:43.160 in a far worse place. 0:17:43.240 --> 0:17:47.960 Yeah, because the dollar might buy you more beef next week, 0:17:48.080 --> 0:17:51.040 but it's most likely guaranteed to buy you less beef 0:17:51.040 --> 0:17:56.000 in a year. Yeah, let's talk about than the dollar, 0:17:56.080 --> 0:18:00.800 but more specially stable coins. So sort of maybe somewhat 0:18:00.680 --> 0:18:03.119 historic here in the United States, we just passed this 0:18:03.200 --> 0:18:06.720 genius Act, the Stable Cooin Act. Scott Assent, the head 0:18:06.720 --> 0:18:10.720 of the Treasury, whose job is to sell US debt, right, 0:18:10.800 --> 0:18:14.240 that's his primary job, sell the treasuries. He's some dude 0:18:14.240 --> 0:18:16.520 pushing towards these stable coins. He said that he sees 0:18:16.520 --> 0:18:19.280 stable coins growing by three points set to three point 0:18:19.359 --> 0:18:23.560 seven trillion by twenty thirty. I saw you were talking 0:18:23.560 --> 0:18:26.280 about the difference of dollars in that, but I think 0:18:26.320 --> 0:18:29.200 I saw you make a tweet something about it being 0:18:29.280 --> 0:18:32.240 like regulatory capture. Yeah. 0:18:32.359 --> 0:18:40.600 So the if you play it out again, this is, 0:18:40.880 --> 0:18:44.680 you know, balancing short term of long term. That the 0:18:45.240 --> 0:18:53.760 short term benefit is that there's a a positive regulatory 0:18:53.880 --> 0:19:01.600 stance towards the digital currency world, which it is. And yeah, 0:19:01.640 --> 0:19:04.080 we can say that that's I won't say it's undeniable, 0:19:04.119 --> 0:19:05.560 but it's close to undeniable. 0:19:05.560 --> 0:19:07.439 It's like, hey, there's a regulatory stands too. 0:19:07.760 --> 0:19:11.720 That's that's positive, that that's welcoming to this in the 0:19:11.880 --> 0:19:15.400 US right now. Yeah, Yeah, And that's better than if 0:19:16.000 --> 0:19:18.640 Elizabeth Warren was going out trying to whack the mole. 0:19:18.760 --> 0:19:23.200 Everybody working on bitcoin or the broader what people refer 0:19:23.280 --> 0:19:27.520 to is the crypto space that you want that that 0:19:27.640 --> 0:19:35.600 it's better to have a regulatory apparatus that is friend, 0:19:35.680 --> 0:19:42.080 not foe. But long term, if you think about stable 0:19:42.119 --> 0:19:47.159 coins that are that are backed by dollars, it's not 0:19:47.280 --> 0:19:51.840 actually solving a problem, and that the very same interests 0:19:51.880 --> 0:19:58.119 that are helping to instantiate stable coins do not have 0:19:58.320 --> 0:20:03.400 an interest in in private versions of the dollar existing. 0:20:03.480 --> 0:20:09.240 Long term, they get immense control and power out of 0:20:09.960 --> 0:20:12.040 having a digital version of the dollar that's controlled by 0:20:12.080 --> 0:20:15.760 the Fed, and that the larger that a stable coin grows, 0:20:16.400 --> 0:20:22.000 the more control that the the Fed and the Treasury 0:20:22.119 --> 0:20:24.399 or the Office of the Presidency would want to have 0:20:24.560 --> 0:20:30.000 over it. Right, it becomes unavoidable, genuinely, and so that 0:20:30.280 --> 0:20:32.680 the law in my view, the large interest that we're 0:20:32.760 --> 0:20:37.520 pushing the stable coin apt or special interests that wanted 0:20:37.640 --> 0:20:41.240 their stable coin to be able to be the winner 0:20:41.320 --> 0:20:44.640 because they have seniorage and they will extract value out 0:20:44.680 --> 0:20:47.479 of that. And so in the short term it can 0:20:47.520 --> 0:20:52.200 feel like a positive because there's you know, women, I'm 0:20:52.200 --> 0:20:56.040 picking from a bitcoin lens that there are advocates that 0:20:56.200 --> 0:20:59.879 are that are friendly to an adjacent industry, not bitcoin specifically, 0:21:00.400 --> 0:21:02.520 and that there might be short term benefits that come 0:21:02.560 --> 0:21:05.080 from that, and it would be certainly better than an 0:21:05.200 --> 0:21:09.040 active foe trying to go stamp out bitcoin companies. But 0:21:09.400 --> 0:21:12.320 the larger that a stable coin grows, the more control 0:21:12.880 --> 0:21:16.639 the existing state apparatus is going to naturally have over it, 0:21:17.119 --> 0:21:22.320 and the interest of companies like coinbase and usd C 0:21:22.960 --> 0:21:26.120 or anyone that interacts and helps move that stable coin 0:21:26.640 --> 0:21:30.120 is going to be to you know, use our stable coin, 0:21:30.160 --> 0:21:33.280 not that stable coin, and that that's ultimately the root 0:21:33.400 --> 0:21:37.439 of you know, tether has worked perfectly well all over 0:21:37.440 --> 0:21:39.879 the world without this. Why does it need this? The 0:21:39.960 --> 0:21:42.760 only reason it needs this is to ensure that the 0:21:42.800 --> 0:21:44.800 state apparats doesn't come to shut it down. But then 0:21:45.080 --> 0:21:49.240 the other side of that coin is control. You know that, 0:21:49.680 --> 0:21:52.520 you know why, why if the free market has been working, 0:21:52.600 --> 0:21:54.840 why not allow the free market to continue to work. 0:21:55.400 --> 0:22:00.800 The logical explanation of it is is control surveillance, And 0:22:02.040 --> 0:22:04.280 it might not play out in the next week or 0:22:04.320 --> 0:22:07.040 the next month, but that's the direction that it's heading 0:22:07.119 --> 0:22:11.399 and in my view, we have serious problems they need 0:22:11.520 --> 0:22:15.320 serious people to solve them. The fact that bitcoin was 0:22:15.359 --> 0:22:20.800 de emphasized for stable coin legislation or market structure legislation, 0:22:21.640 --> 0:22:27.879 it just yeah to me, it points to regulatory capture 0:22:27.960 --> 0:22:28.800 versus innovation. 0:22:29.280 --> 0:22:32.320 Yeah. Part of the Genius Act, there was a couple 0:22:32.320 --> 0:22:34.080 of bills that went through. One was also called the 0:22:34.160 --> 0:22:37.600 Clarity Act, And that's how I felt about that bill specifically, 0:22:38.000 --> 0:22:40.480 because like in America, we're the land of the Free. 0:22:40.520 --> 0:22:41.920 We're supposed to be able to do whatever we want 0:22:42.480 --> 0:22:44.119 and then laws are meant to tell us what we 0:22:44.200 --> 0:22:47.320 can't do. But here they're passing a Clarity Act to 0:22:47.920 --> 0:22:50.040