It's. All going to zero against
Bitcoin. It's going up forever.
You're against Bitcoin. You're against freedom, yo.
Welcome to another episode of Simply Bitcoin Live, or your
number one source for the peaceful Bitcoin revolution
Cover breaking News. Culture Medic Warfare will be
your guide through the separation of money and state.
This is day #2 of Streaming Backstage from the
Unconfiscatable conference which is going to start at 10:00 AM
Pacific Time. So this is kind of like the
prelude to that today's going to be a very special show at
everyone is extremely excited about Bitcoin to the point that
Bloomberg, you know this respectable financial
publication is predicting essentially $500,000 Bitcoin.
And this comes on the heels of Adam Back who's originally cited
in the situation Bitcoin white paper predicting $700,000
Bitcoin. Also, we're going to pull up a
lot of data and a lot of facts that you could say support those
arguments. There's this very, very famous
Twitter spaces that Michael Saylor did, and he said that
three things needed to happen in order for for Bitcoin to 10X
from here, for Bitcoin to take it up to the next level.
And those three things are #1. The FASB accounting rules
change. Check that off.
That already happened. A Black Rock or sorry, an an
ETF, A Bitcoin ETF to be approved and the capability for
big banks to custody Bitcoin for their institutional clients.
There's been much news about that throughout the world.
Many blank banks are applying for licenses to do that and
building out the infrastructure. So it looks like all the planets
are aligning and I think it's going to be a very, very
exciting next couple of years. Also, we have a very, very
special guest today. We have Romaine.
Romaine is part of he is with Bai Sato.
Romaine, thank you so much for joining us on Simply Bitcoin
today. We're super, super happy to have
you. Romaine does some very
interesting things. Bitcoin mining, AI, this is so
cool. I didn't even know that like was
a thing. So Romaine, thank you so much
for joining us today. Well, thank you very much for
for having me. It's a pleasure to be in your
show. It's a pleasure to be with you
in Vegas even if I'm not there must be must be fun.
And I've heard a great conference from from from your
show from yesterday. Thank you.
Yep. So Bitcoin miner super focusing
on efficiency for mining Bitcoin.
Frankly as you said adding AI into our our, our, our business
because we think at the energy level we can transform energy
for computing power for Bitcoin and for AI and HPC.
So this is a kind of trend that you see not only with us in
other Bitcoin manners. We have made announcements into
moving AI or HPC. And again this is because our
job at the end we transform energy into computing power.
We can do what we can do for one, we can do for the other
one. It's interesting for various
reasons that I'm sure we will go over at some point.
Yeah, absolutely. Well, it's an honor to have you
on the show today remain and we're friends with anybody who
is increasing the Bitcoin hash rate and further, you know,
securing the network. I'm also joined today with my
two Co host, my legendary Co host Optimus Fields, the Mr. of
Flights and of course Ruston is with me today.
He's the star of the Simply Bitcoin Originals.
So it's going to be a great show.
We're really looking forward to it and let's just jump straight
into it. So let's start with numbers
first. Let's go.
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At the time of recording, the Bitcoin price is 43,735 SATS per
dollar. 2286 block height 820,284 blocks to having 19,716
having estimate April 20th 2024 Total lighting Network capacity
5038 Bitcoin capacity value 220 million U.S. dollars Realized
Monetary inflation 1.75% The market capitalization of Bitcoin
almost touching 1 trillion We're at 855 billion U.S. dollars.
Bitcoin versus gold market cap 6.29% continues to crawl up ever
so slowly. So Elizabeth Warren continues
with her relentless attacks for anyone who is not based in the
US Elizabeth Warren is AUS Senator from the state of
Massachusetts. She also sits on the Senate
Banking Committee. So she has a lot of influence
when it comes to banking in the United States of America and
she's took it upon herself. In fact, she's made it part of
her campaign to take a quote UN quote anti crypto approach.
You know, she was involved with the she took advantage of the
bogus Wall Street Journal article that came out a couple
weeks ago to write a letter to the White House.
That prompted the White House to tap on the Treasury.
And that prompted the Treasury to recommend the Fin CEN
proposal, which took advantage of the Patriot Act, would
basically surveil more Bitcoin of the more Bitcoin
transactions, the industry, more regulation.
And it was all based on a misrepresentation of data and
facts, right? There was we played you the
video yesterday on yesterday's episode where she was
interviewing Jamie Dimon, Jamie Dimon saying we should, you
know, ban this, all right. But she's really, really
accelerating. You know, this is interview
after interview after interview after interview just talking
about, you know, Bitcoin is a threat.
Bitcoin is a threat to national security.
Bitcoin is a threat to America. And it's it's just crazy.
But it's something that we've always said on the show on
simply Bitcoin exposes incentives.
That's really what it does. And I think that if you're
someone like Elizabeth Warren who has, you know, $179,000
salary but she's worth 10s of millions of dollars and makes
you start to ask questions, I'm not making any assumptions.
I'm not making any you know, any.
I'm. I'm not accusing her of
anything, but I'm just saying, you know that there is a money
printer in Washington, DC anyways, so I do want to play
you guys this video. It is, you know, TFTC did a
great job reposting it originally.
It is from Squawk Box, CNNBC. So the clip's about 3 minutes
long. Let's check it out and then
we'll all talk about it. We'll discuss it.
I'm so curious what was going through your mind when you heard
Jamie Dimon's response. Look, when Jamie Dimon and I are
in exactly the same place, it's because we have a serious
problem in this country, and that is a part of the financial
system is being used by terrorists, by drug traffickers,
by rogue nations in order to launder money, move money
through the system and finance their illegal activities.
But keep in mind on this one, it wasn't just Jamie Dimon.
We had a long, long table with the CEOs of all of the largest
banks in this country. And when I asked the question,
should the rules that apply to their banks, and by the way,
also apply to stock brokers and gold traders and credit card
companies and credit unions and all the other financial
transactors, Should those same rules to deal with drug
trafficking and terrorism financing and rogue nation
financing, Should the same rules be put in place?
Every single one of them said absolutely.
So what this tells me is it's time for Congress to act.
Let me ask you, beyond Congress acting, there's a big question
mark over whether the SEC is going to act on whether, for
example, a Bitcoin ETF will ultimately get approved, which
would expand access for for Americans all over the country
potentially to invest in Bitcoin.
You've probably watched the price of Bitcoin has risen quite
materially even in the past several months in large part of
the back of that expectation, You know Gary Gensler very well.
Do you have any expectation that something like that would take
place and would you support it? So I I don't want to speculate
on what the SEC is doing here. I really want to draw an
important distinction and that is the SEC principally is
talking about regulation, the kind of monitoring the
platforms, the markets, make sure that there's adequate
consumer protection and issue that is built into the DNA of
the SEC. It's an important thing to do.
It's absolutely something they should do.
What I'm talking about is the law enforcement aspect of this.
It's not over at the regulatory agencies.
What I'm talking about is the part of the system that make
sure that banks are not being used for terrorist financing.
For example, you know, we have something called the Bank
Secrecy Act, which is how banks are required to monitor certain
kinds of transactions that go through the system.
It was written in the 1970s following 911.
The law enforcement folks went back, looked at what had
happened, figured out how the financing had made it through
the system. And that's the last time that
Congress updated the the Bank Secrecy Act.
What we need to do is we need to update it again because there's
a new threat out there. It's crypto, and it is being
used for terrorist financing. It is being used for drug
trafficking. North Korea is using it to pay
for about half of its nuclear weapons program.
We can't allow that to continue. So, OK, so a lot.
You know, you're hearing this and you're like, wow, you know
this, this this industry is, is is terrible.
Like it's so many things. And she mentioned a couple
things, so the terrorism. And then you have to connect
that with the Wall Street Journal article which claimed
initially at $130 million was raised using quote UN quote
crypto. Sam Callahan did a great job and
other bitcoiners. Preston Pitch wrote an amazing
piece. The actual number was roughly
$450,000, very, very, a lot smaller than that original, you
know, $130 million claim. And then she mentioned North
Korea. Now that's very interesting
because North Korea was mentioned by the US Treasury
when they sanctioned for the first time in American history,
open source software. And I'm talking about tornado
cash, right. So you can see the narrative
that's being built here is the Bitcoin senator, Senator Cynthia
Lummus, and she has the data. And the data points to a very,
very different story because you hear that interview and
essentially you're like, wow, the terrorism is being financed
by crypto. Terrorism is being financed by
Bitcoin. This is a major, major issue.
But if you actually look at the data, you know, Senator Cynthia
Lummus, you know, agrees with with the with the initial you
know what we've been saying about the Wall Street Journal
article, she says in an inaccurate report last week.
Claimed Tomas raised nearly 100 million via crypto assets, in
reality was less than 500,000. This in captain in encapsulated
the misconception that crypto is a tool for illicit finance when
it accounts for less than 1% of global illicit finance activity.
And here's a graphic that we've been showing to you guys over
the last couple days. Total illicit finance 2.9
trillion crypto accounts for less than one percent .69% or 20
billion of the total pie. Where does the the rest of that
illicit finance happen? Where?
Where does it occur in the
traditional financial system where the rules are already in
place. So you know, it goes to question
what are Elizabeth Warrens true motivations?
What is she really, really, you know, what is, what is she
really interested in here? So I'm going to pass that on to
Romaine. And the way that I'm going to
frame it to you, Romaine is, look, your business, you know,
is based on Bitcoin and she's clearly she's taking it upon
herself to attack the industry, you know, under the guise of
money laundering, under the guise of terrorism, you know,
any excuse, you know, under the sun essentially.
So what is your take on this? Does this surprise you at all?
Where's your stance? Well, it's not a surprise in the
sense that it's not new but it hasn't started with Isabet
Warren. It has started with every new
inventions that was invented since the electricity.
There is always someone who's against and try to reframe the
use or having more people going into into that.
Right now the cycle is about crypto and Bitcoin.
And I think one one thing that she probably misunderstood is
the difference between Bitcoin and crypto.
She often talk about talks about crypto.
We do Bitcoin, we are bitcoiner. Bitcoiner, as you know is a
unbreakable blockchain makeable accounting method if you want on
different kind of transactions. This is not used by terrorists.
This is not used to do lender money.
It's a fact. So I think that really at the
end you will either fight the technology or you embrace it and
you make sure that it's done correctly and not against rules.
I think we need to have some rules at some point, at least
little rules. But when you look in the US
anyway, if you're in crypto, in this case not only in Bitcoin
but in crypto, you're probably using what a Gemini, a base to
do access and buy crypto, which is one is listed on the NASDAQ,
the other one different kind of regulation in place, KYC,
etcetera. So there are rules and we are so
small today. I mean we were you are looking
at your numbers, it's great. We are approaching the 1
trillion valuation for Bitcoin. The gold valuation market cap is
around 10 trillion. So we still have hope to go and
hope to go we are not at the stage where we should or the the
the government should refriend the use but more embrace it and
make sure that it's done correctly.
And honestly I think we are doing this way and when you look
at Bitcoin miners like us who are publicly listed, we are more
and more professional. It's it's over the time where
some Bitcoin miners were edgy or bitcoiners were edgy, we we
should have in 2910 eleven, 12. It's possible that Bitcoin was
used for different kind of like operations that was borderline
legal or illegal. It's not the case anymore.
We are are. We are professionalizing
ourselves and we are going showing the way and let's let's
let's go for it. Yeah, 100%.
And I think that you know it it's it's it's it's not
surprising it's it's not surprising what you said and I
and you you said something about any any new technology any new
innovation. You know it's been attacked and
it just kind of reminds me of this like caricature and I'm
sure you're familiar with it romaine of the electricity in
like the 1900s and essentially like you know this woman being
like shocked to death just like don't electrify society is
extremely dangerous and it just and it kind of reminds of what
when you were saying that it just reminded me of that image
for some reason. Anyways I'm going to pass it on
to you. Rustin.
Rustin, do you have a? Do you have any takes on this?
All right, I got to be. I'm going to try it here because
it's Liz and she just gets under my skin that that face her tone
of voice. But let's get started here.
Terrorism by crypto. You said it 400,000.
What about 600 billion? Are are we going to talk about
that and and Hamas or why aren't they pointing that out, See,
this is the paint or the pot calling the kettle black.
They are going to point out their own felonious activities
and push that on to the other person.
And when she was giving this spew in Congress, it was
incredible because on live TV she was getting debunked by
senators and also financial surveillance experts that broke
down how these people are using sovereign funds and the Fiat
system to to fund their activities.
So we have that. And at the, she had just these
people by the day are losing credibility on a massive scale
and she was when she speaks to Jerome Powell and they're
talking about the Fed and things, what she tries to say
these people are price gouging. She has no understanding of
basic economics. So that is very, I mean how do
you get on the Banking Committee?
I guess she's easy to manipulate and get them to support their
narratives 'cause she's kind of incapable of thinking or but the
government printing and stealing from people, that's going to go
the way of the dinosaur just like Liz.
And of course they want to keep that ability to to live rent
free and provide no value. If you didn't have to do
anything and you could live off free printed counterfeit money,
I guess that's a good deal for some people.
But again, the status or going to become extinct and that's
going to coincide as they as they go.
It's probably going to be a decade and that'll be bitcoins
rise. Coinciding with that, the rise
of freedom and prosperity, freeing ourselves from the
shackles of the state and their ilk.
Like Elizabeth Warren, their actions go against everything
they try to preach or promote. So go ahead and look at that.
Look at their actions, not their words.
In North Korea. What kind of straw man, weak ass
argument is this? They just they just spew.
Out of the. Out of their mouth, OK.
And they, it's just completely bonkers.
And so I just can't wait until the tales of history come back
and say maybe we should have had IQ tests or something along
those lines when people came into the Senate.
I don't know. It's I'm just brainstorming
guys. But hey, I, I'm, I'm with Jack
Ballers. Game over.
We're going to the moon. See you, Liz.
Wait, wait, wait before before I'm.
Happy we have our in house Libertarian here.
It's simply Bitcoin. OPTI, what the other side of the
spectrum. What's your take?
Well, I don't know if you guys noticed, but did you see when
Elizabeth Warren or whatever you guys want to call her comes on?
She literally couldn't not laugh when she started to talk about
this. I I think this might have been
one of those Freudian moments. She kind of like, giggled.
And you're like sitting here like this is supposed to be
serious and the first thing she does is start laugh and you're
just like, what is going on here?
It just it. It just.
She. Knows her statement is so.
Yeah, it's it's laughable. She's laughing on air and here
we are. Everyone's taking her serious,
like it. It's really incredible that this
is where we are. You know everyone's favorite
Karen out there is is is basically here to protect the
world and and what she said, the last thing she said on that clip
was we can't allow this to happen.
Like, who is we that we're talking about?
Who is this we? Because we?
Can't allow this to happen. We should be looking at the
banks and JP Morgan's well, well cited JP Morgan as like some St.
like he has the moral like superiority to come out and talk
about. Illegal activity what you know,
what about the the old island financing in that?
And it gets a little. Slap on the wrist.
All right, all. Right.
All right, let's reel it in. Let's reel it in.
All right, I do want to give a shout out to our sponsor.
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can talk about Bisato. Let's check it out.
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All right, everybody. We are going to talk about
Bisato today. Opti, let's share the screen.
Here we go. We're putting it up on the
screen right now. Russian, you have some questions
prepared. Why don't you jump into it?
Man, I'm so excited to get this going, 'cause the pairing of
mining with AI just got my mind going in so many directions.
But just to get started, what are, you know, kind of the ethos
and mission behind by Sato and what are you guys seeking to
accomplish? And you know, what are kind of
the implications of AI in Bitcoin mining and where are you
looking to take all that? Well, thank you for giving me
the opportunity to do it. Simply put, long term we're
building ultra efficient infrastructure for managing
computing power. Originally we started with
Bitcoin mining in 2017. I started the company myself.
I'm an entrepreneur for the past 25 years.
I started with the Internet back in 1995.
I've seen also the people fighting Internet the same way
that they are fighting Bitcoin right now.
So I've seen it. I know where it is.
I'm not the only one of course, but this is a kind of like a
story I'm bringing to the company.
When we started originally it was so fun.
We were like, hey, big in technology.
Bitcoin is great, Bitcoin mining sounds simple and easy.
We were living in New York and we decided to find a mining site
and we found Q1 of the best place in the world for mining
Bitcoin because not only the energy is renewable but it's
stable and it's also super well priced.
We pay on 44.3 cents a kWh, so it means an electricity price
for the full year of 2023 until today, the cost of producing one
Bitcoin electricity is on $14,000 one four in US.
So it's an extremely great price.
It's an extremely great buying price of the Bitcoin and even
better when the Bitcoin goes to the 4344 and we hope way higher
depending on the prediction that you you said earlier.
So that's that's that's who we are.
We're publicly listed in 2021 a little bit at the late stage of
the last bull market. We listed on the Canadian market
for Satoshi Nakamoto obviously and we are also available in the
US under the ticker OTCQBCCPU dot F So it's very easy to to to
find us and of course people can go on our website.
We wanted to get listed one first to to bring some some kind
of transparency into the industry and being listed this
is what it is you need to show. We did, we had to show the four
years or five years of of full account edited account.
We are publishing our financial every quarter.
We are publishing monthly our numbers about our production.
Today we run 20 megawatts of energy.
We are present a little bit less than 0.1, 25% of the total high
shape network. We run start computers and we
make our own serve Bitcoin per month.
We're not the bigger, we are bigger than us.
But in the industry the the the one wins are the most performant
and the more efficient. And that's what we have built
because we are transforming our energy ourselves into computing
power. And this is where the link
happens with AI, because what we've learned, what we've done,
the way we manage our infrastructure, yes, it will be
different for AI and HPC. You don't run the same type of
data centres or AI and HPC. You have one need to have
redundancy in electricity or higher cooling system, Internet
access that the generators exist and this kind of stuff.
However, the magical thing we have in Bitcoin mining, as you
know is the curtailment or the demand response that we can.
We are the only industry technologies technologically
speaking, who can turn the turn the computer off and on in
milliseconds or seconds and that way we can balance an an
electrical grid and by mixing AI.
Our vision is that we will be able to manage a grid with BECO
mining and keep a A a stable energy for AI and HPC and that
way we can continue using the energy at the local level where
we operate. For example, in Quebec, we're in
a city called Joliet. Somehow we're north of mental
health. It's a very lovely city.
But with us they have been able to monetize the energy that was
wasted before. They've been able to make more
revenues from it, more margin from it that they can distribute
to the constituent. We have employees, not a lot.
It's true in become mining, we don't have lots of employees,
but also in Quebec there are they have no unemployment
issues. We have also made work with a
lot of contractors around the city where we are probably like
3 or $4 million electrician, constructors, construction
etcetera. So it's bringing about revenues
and it's been getting wealth to the to the local level.
We are and what we are trying to anyone having like this local
approach, but what we are trying to do is to show the benefit we
can make at the at this local, at this local approach and then
show how it could be made at the state or even at the country
level managing the grid for the next 15 to 20 years for
computing power. It's not only Bitcoin mining,
it's certainly also competing for for AI and HPC.
My my guess is that the demand for AI has been undervalued by
the market. We're going to need way more and
in order to have computing power originally need to have
electricity and you need to have people who know how to transfer
this electricity to computing power and that's what that's
what we do. I'm going to stop here.
I don't. I don't want to continue for for
too long. No, man, thank you so much.
That kind of flows in perfect. So Sato, you guys are really
into sustainability and So what do you aim to do with that and
you have that cheap access and how do you particularly aim at
hydroelectric powered operations like that in Quebec and that
load shedding agreements? How does that work for you guys
in the economics there and especially in like Canada where
you have these just Wicked Winters and how does that work
and benefit, benefit just the people in that community where
the miners are? Yeah, very great question.
The benefit because they can get energy when it's cold, that's
what happened with us in Quebec in winter.
Sometimes the electricity providers, they need to manage a
peak of activity coming from the the hectares in the in the
houses and by turning off our energy they can then use the
energy to their Max because the municipality we're in.
In some way it's similar to APPA.
You have a maximum of energy they can use.
So I'm going to give you an example.
Let's say they have 100 megawatts of energy they can
use. They want to to run their
operation at 80 MW because you don't want to run your
electricity and then your system at 100% you want to distance and
there are CT used 60 megawatts and they have this 20 MW that
wasn't used before. But they need this 80 MW of this
extra 10 to 20 MW because in winter, during the day or during
the night they have a peak of demand and then they need to
produce more energy and send more energy to to the resident.
Before us because of this peak they were not able to sell this
energy with us. They can sell this energy.
This is why it's major and This is why at the local level we are
already bringing some art for for the population.
We are not using energy could be used for something else.
We are just using an an wasted energy that we can use for big
cut mining. I I want to focus on that last
part because I thought could you wide shot it.
Thank you Murphy. So I want to focus on that last
part, which is this idea that Bitcoin mining, you said it was
wasted energy, and that's a misconception.
That's something that's one of the like a talking points.
Essentially, Bitcoin mining uses too much energy.
Well, no, Bitcoin mining uses energy that was already going to
waste because if it was being used, it wouldn't be economical
for Bitcoin miners to use that set energy, right.
And they paint this misconception in the media of,
you know, Bitcoin miners just setting up shop in the middle of
the city and just bringing up the prices up for everybody.
That doesn't make any sense, right?
Bitcoin miners are like water. They're going to flow to the
cheapest electricity sources because that makes it the most
economical for them, and that creates and and remain.
And then this topic itself is fascinating to me because for
the first time in human history we have something that monetizes
wasted energy or stranded energy, nothing else before
that. Maybe I'm, I'm incorrect here
but you know my memory I I can't think of anything else that
gives the stranded energy this wasted energy value and you're
seeing that along many, many fields, right.
So you have hydro you have that otherwise could potentially be
very stranded because it was in a remote area.
You have flared gas. You have methane, you have all
these, you know, different types of, you know, wasted energy,
stranded energy that's somehow being monetized.
So can you talk a little bit about that, about how Bitcoin is
changing the energy industry itself?
Yeah, commonly I go with you. I mean, it's unique.
Only Bitcoin can provide this kind of flexibility with the
computing power that they're providing.
So we can really deploy. We decided to be incorrect.
It's a it's a one provider of energy, 97% is hydro
electricity. In the rest it's biomass, wind
and solar, but almost producing no carbon emission.
But in in more than us and and and for the whole industry and
the Bitcoin industry, we can go where energy is wasted, usually
at low cost and we can sometimes even lower the carbon footprint,
mainly with slag as as you were mentioning.
And there are studies probably that from this that you've known
called Daniel are showing how the renews of the metal from the
flag gas and the CO2 could be reduced into energy and then
even lower the temperature of the Earth in the coming in the
coming years for the Paris Climate Accord.
I think that is for 26 or maybe a little bit more.
So it's really the only energy. The only technology companies
that can do that Marathon have started to do are are converting
energy from waste. So the waste, the trash and
really from from from our life. Instead of putting them in a
field you can use the metal it creates or you can burn them.
Some miners are using burning, burning tyres and reusing the
heat to produce energy. The beauty of Bitcoin is that we
are focusing on efficiency and if we want to survive we need to
be efficient. And to be efficient we will need
to find this kind of phrase And this is what I love this
industry that's why I'm passionated with with with what
we do. Because it's not only us we I
mean we have the electricity we are reusing our heat for example
and more and more become miners. Also using your your there if we
can do it for heating augments and all of a sudden not only you
heat apart your apartment but you make it cut at the same
time. Innovation is everywhere.
It's only the beginning. But the bottom line is that we
are focusing on efficiency and this efficiency it was it is
what is needed in the next again five years.
I don't want to send to long term vision and etcetera.
But we are at the verge I think where the environment debate is
behind us. Maybe I'm a little bit
optimistic maybe it's going to take more and when I see Senate
of that well and I understand that we still have some some
some some work to do. But I really believe that in in
today's world efficiency and using the energy the right way
for computing power is something that is needed everywhere.
If you are government and if you don't have that ready in your
country, you will lose your efficiency not only as a as a
country but for your citizen, your companies and at some point
they will need to contact and use.
This is also the beauty of being in Northern America, Canada, US.
It's a kind of a free market. It's a private companies even if
we're public, but the the private projects that can
finance themselves use the network of companies like US
Ultra professional. We are not the owner and we have
huge companies who are listed on the NASDAQ doing what we do.
We are listed in in Canada under Inter GSXV.
We want to follow these steps. We've seen the success from Iris
Clean, Spark, Big Farm. We've seen, we've seen how they
were able to deploy capital and to grow intelligently.
We want to follow that step and grow and and and add more
computing power for Bitcoin where Bitcoin deliver.
We love Bitcoin for a long time. We are even developing
applications for the lighting network and ordinals because we
want to provide infrastructure also for the software part.
This is also where I'm coming from.
I was more coming from the the software part earlier and yeah
the the, the innovation in our industry is so key that I think
it's only going to go and be developed and and and asked to
run other become manners. I think it's clean, clean spark.
They are developing themselves in Georgia, in the state of
Georgia they have this local approach showing that we can win
at the local approach will make us even more at the global
approach. It's going to take time.
It's true that governments around the world can change
etcetera, but more and more placing in the wall start to
realize the beauty of Bitcoin as a store value international
transaction and maybe one day the the the guy dream of the
peer-to-peer network marathon solution.
In the meantime, it's it's, it's.
Happening today, Yeah. And and and I I wanted to double
back on something that you said in the beginning romaine about
you being you've been an entrepreneur since the, you
know, since the 90s, you saw the rise of the Internet.
Is there something unique about Bitcoin?
Is there something about Bitcoin that you've never seen before?
Because I've I've, I've had this conversation with multiple
entrepreneurs and they're like this thing is special.
So is that something that you've experienced too?
Because you've seen the rise and falls of of many things you've
experiencedthe.com, bustthe.com boom.
So is there something about Bitcoin that makes it different?
And if it it is different, why is it different?
Why is it unique? Is there something?
So, and I'll describe it from, from my point of view, right,
It's like, yes, it's not only the it's not only a technology,
but there's something revolutionary about this.
There's something that hits the soul.
Maybe it's money itself. Maybe it's because money, as
much as people don't like to admit it, money plays a critical
role in society. It's half of every transaction.
And if that money is broken, if that money is corrupted, you
know that has downstream effects.
So I want to get your take on that remain.
Clearly you're a veteran, you've been here, you've done this for
a while. What's your take on that?
Well, last question. Yes, Bitcoin is special.
Bitcoin is magical. It's something that has never
been done before, invented before.
It's touching a lot of things as you said from technology to
finance to freedom to worldwide payment system and solution of
exchange and communication. It's it's opening everything and
in that way I think Bitcoin is is really unique in in what they
have done and and working on it today I think there is nothing
better. There is also it's interesting
to to note the vision where Bitcoin and Satoshi could become
the the, the the currency of AI in some ways because they are
you need to create some kind of request back and forth.
You can monetize this with SAT. You can also use the SATS as the
and the transaction Ledger and lots of things could could
happen. So it's really interesting to to
to to see the range of Bitcoin and and also one thing that is
interesting right now is is what's happening with ordinals.
I know it's a big debate. You have some Maxis who are
against ordinals. You have pools who are not
mining ordinals or inscribing ordinals.
But the inventivity that has brought to Bitcoin is really
magical. It's it's a time of of you know
when Internet started then all of a sudden you have things pop
popping up everywhere new invention and we are in that in
that period. So it's it's the best.
It's not only our Dinos, you have a Federation of course
Lightning Network type of multi stick signature and etcetera.
DLCS are also very interesting and in development and it's only
the beginning. So it's it's it's that's where
it, it differs from everything that I've seen before.
And what we are building today I think is going to be something
huge in the coming 5-10 years and it's going to be behind us.
We're going to see the fleet, the same fleet with we've seen
with the Internet in 99 people stop complaining about the
Internet at the end it became normal.
We're going to have this flip at some time.
We'll take more time in different kind of countries and
different kind of legislation, but eventually it will really be
mainstream and and everywhere. Absolutely 100%.
Oh man, I I really, really enjoyed this.
Nico, before we go though, I I'd just like to highlight, if you
contrast the numbers, you know we saw Elizabeth Warren talking.
We have Romain talking and and it just goes to show that like
it, it's completely fabricated lies that we're hearing that you
know we're we're all criminals. And I think you're Romaine,
you're just a perfect example of being an entrepreneur and why we
are all into Bitcoin and the improvements that it does give
us. And and I think just like if you
in your mind, you contrast the difference between her
messaging. And our messaging, as I think
it's very clear to anyone who's actually paying attention to the
numbers that if they still have some critical thinking and logic
left in their brains, they will understand that Bitcoin is
really winning. 100 percent, 100%.
Wow, I really, really enjoyed that segment.
All right, everybody, let's get to the news.
We have a lot to talk about. Let's check it out.
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Not your keys, not your Bitcoin. Anyways.
So let's talk about this and it is, I'll be honest with you
guys, we usually don't talk about price on the show.
We don't like to speculate and whatever.
But The thing is when Adam back is saying 700K Bitcoin, when
Bloomberg is saying 500 K Bitcoin, like, I mean, you're
going to have to cover it. And then we're going to break
down like we're actually going to, let's look at some data,
like let's look at some facts because you can just throw out a
number there and you can say this is the number, this is how
it's going to happen. But let's kind of connect the
dots because this is what we do here at simply Bitcoin.
So this is the Bloomberg article.
Bitcoin hype machine kicks into OverDrive.
While cryptocurrency surges past 42,000, Bitcoin topping 42,000
is just the start of a fresh crypto super cycle.
Again, I love how the media still says crypto, but it's
really big. They're talking about Bitcoin,
but they somehow put crypto in there.
Bitcoin super cycle that will push the world's biggest token
above $500,000. And what I heard say is the new
monetary order taking Wall Street by storm.
Holy cow. Anyways goes on to say such is
the is the palpable sense of euphoria within the digital
assets community right now, where the largest token is
coming off its third months of gains, adding another 11% so far
in December to trade at its highest since the market began
to implode in April 2022. All the excitement about about
the surge is bringing out hype up predictions about further
gains, most of them based on little else that intuition or
obscure technical analysis. The cryptocurrency is in the
midst of a revised arrival few saw coming this year.
It's added more than 150% so far in 2023.
As many market watchers anticipate, an exchange traded
fund that directly holds a token could soon be approved to trade
in the US. The jubilation prompted Coinbase
CEO Brian Armstrong, for instance, to post a post that
quote Bitcoin may be the key to extending Western civilization.
Something to note he'd He is the CEO of one of the largest crypto
casinos. But he didn't say crypto, he
said Bitcoin. I just want to point that out.
Anyways, it goes on to say Meanwhile, the prophecies for
high how high the coin could go spanned anywhere from 50,000 in
the media term to above 530,000. Quote It's getting crazy again,
said Matt Mellie, the chief market strategist at Miller
Tabik Co. Those kind of comments show just
how quickly sentiment can change for this asset class.
It goes on to say, quote. I would argue that one of the
most important reasons Bitcoin rallied so strongly in 2020 and
2021 was because of the massive influx of liquidity into the
system due to the pandemic quote.
Without another huge liquidity program, some of those
predictions are a pipe dream. Anyways, moving on to Adam
Back's prediction, says digital gold.
Bitcoin will surely flip physical gold sooner or later
and probably this having cycle. So within a year or two
currently I would take 700K Bitcoin, but it may be partially
a substitute. Some people start selling gold
to Bitcoin to buy Bitcoin crossing the market cap below
that, right. So it's very, very interesting
and I know Romaine mentioned the the gold market cap earlier.
Now let's kind of tone down the opium a little bit and let's
talk about why, you know these things could happen.
First, the Bitcoin supply the whole time high has been most of
it has been inactive, 70% to be specific.
This has never happened in Bitcoin's history, right.
We have the having coming up. So this about half the cell
pressure is going to be cut in half about in April of next
year. So you have the having, you have
the fact that there is not enough Bitcoin to go around.
You have the fact that Naimbu Kelly's buying Bitcoin strategy
has been vindicated. The moment Bitcoin passed 40K
name Buchelli is now in the green.
And Michael Saylor's strategy as holding Bitcoin as an
alternative to holding Fiat in the company's balance sheet has
also been vindicated. He's been in the green since.
I think his average buy in price is about $30,292 per coin,
right? And here is because we connect
the dots for you guys. Here is a Twitter Spaces
recording that Michael Saylor joined where he basically made
he made the case, What are the three things that need to happen
in order for? This is way too bullish.
So I'm not going to read the number exactly, but if you guys
are watching the video, which you totally should, you could,
you guys could read that number. But he said these three things
needed to happen in order for Bitcoin to 3X from here.
So I'll play you guys the recording and then we'll talk
about it. Think the catalyst that 10X, it
really is the moment that JP Morgan Chase or other big money
center banks can custody these for large corporates.
That's it. That's the sea change because
there's really no reason why they shouldn't be diversifying
the assets on the balance sheet. Is that, is that your take?
Because I know that. Like Tim Cook, I don't know
where it came from. Earlier this week he said
something like, I owns a Bitcoin, but we have no designs
on anything. Or I don't know if he said
Bitcoin or crypto in general. Is that the thing?
And then? Look first of all it's going up
by a factor of 10 whether they fix any of this stuff, right.
It's going to go a lot. It's going to be a grind up by a
factor of 10 just because gold is broken and the coins going to
replace gold and now everybody in the universe knows they need
a non sovereign store of value in the form of a bearer
instrument. So now they're looking the
amount of stories for last year people said inflation may be
coming we're not sure. Now the mainstream narrative is
flipped to inflation is here you need inflation hedge.
So it's going to grind up to replace gold.
It will go to $500,000 a coin regardless of why they fix these
things. But there are three things that
are massive catalyst that cause and acceleration and I don't
think that those three things don't take us to 500,000, they
take us to 5 million a coin, right.
Those three things are a spot ETF where someone can go ahead
and buy $100 million of Bitcoin via security.
An ETF security I think that's 1/2 is your bank is going to
custody it for you and lend against it.
And three is I can mark it up, I'll mark it down on my balance
sheet based on fair value pair of pursue, it'll be pair of
pursue to the way I handle apple stock or at least that good if
it's if you have property with fair value accounting by the way
it becomes para pursue to the way you'd handle treasury bonds
on a treasury balance sheet. Treasuries are better than
stocks because treasury is property whereas a stock is a
security and you're capped out at 40% of your balance sheet of
security. So.
So it would be a major, major breakthrough if you saw any of
those three things. And I'll end with this one
observation. I waited this last week, but I
still I think it's very powerful.
It's if the banks can hold this stuff on their balance sheet
then a whole new class of investors are going to buy it.
People are going to put in billion and multi billion dollar
orders to buy it as a. Treasure.
I'm going to stop it right there.
So that recording was two years ago, and two out of those three
things have happened. So first thing is the FASB votes
in favor of Fair value accounting for Bitcoin.
Those rules are set to go into effect as soon as 2025.
So that was one of the one of the major catalysts that Sailor
described needed to happen. The other one was major banks
gearing or or preparing themselves for them to custody
Bitcoin for their clients. Here's HSBC to launch storage
services for Torken Eyes Token Eyes Securities as more big
banks warm to blockchain. Soak effing crazy how they do
that. And then Deutsche Bank or the to
hold crypto for institutional clients also not to mention the
fact that Swan announced institutional swan institutional
as well. So yeah, this is all coming
together. This is an article that dropped
a couple days ago. US Bitcoin ETF issuers talks
with SEC have advanced to key details.
So it looks like it that's that's making progress as well.
So those are the three things that Michael Sealer said needed
to happen in order for Bitcoin to 10X from here.
Mind you, two of those three things have happened and the ETF
is on the verge of being approved, hopefully in January.
So this is absolutely crazy. Now remain, please pull down the
bullishness. Please bring us down from the
moon. Or are you seeing what we're
seeing? Well, I mean First off it's it's
difficult to be better than Michael Seller.
I really love him. He's he's always a spot on and
he's he has a clear vision some risk he took some risk he's he's
very amazing and he made a miners he was the instigator
originally of the BMC, the Bitcoin mining council which is
a gathering of many North American and now need a bit more
international Bitcoin miners that are on ourselves.
So it's great to hear him and and and and even if it's two
years on I'm sure today we are getting there and then and the
missing part ETFI think will happen.
We can still be have a deception we never, we never I mean there
is a possibility that something bad will happen.
I don't believe it. I really believe that we are
going to go into a beaconization of the world more and more it
and and the beauty of the ETF if it happens and when it happens
not only it will be bring cash to become but it will bring
respectability. All of a sudden it will be OK
for people to buy to access it whether the other banks or
otherwise they will invest into into the the check.
So I think it's it's more than just the value of it, but in
terms of value we look at it and myself, I mean as a bitter
miner, I don't look at the price.
So I I'll look at the price but most of the time look at the
cycles. I tried, I know, I tried to look
at the cycles, you know and to see how can I deploy more mining
power and competing power in the different kind of cycles.
Because in the Bitcoin mining industry, the difficulty is to
align time with I mean timing your energy, financing your
miners and getting access to the data centres running.
So every time aligning everything is always the most
difficult, the most difficult things and being able to to
navigate during a bull that we've seen before we started in
27/20/17 and in the bear is also key.
But obviously when the Bitcoin is doing nuts, the market is
doing nuts. I believe that Bitcoin is going
to grow up by, by effect, publicly determiners are going
to also grow like crazy. Not only us.
My theory, my guess is that it might of course have no magic
ball, but it might be the the the first bigger brands, first
the one and then we'll come to junior like us.
We are junior. We are trying to, if I could
become the senior of the next ball.
It's a business that needs lots of CapEx to to deploy not only
for buildings infrastructure but also for buying the the mining
rigs and the computing power. But it's right there.
This is the excitement, this is what is great to be in right now
because we think we are the beginning of of of this cycle
and it's a cycle where we can really go to a a huge level.
Absolutely, 100%. I I I feel as bullish as you
remain. I think that this next cycle is
going to be absolutely crazy guys.
We are going to have to wrap it up because the unconfiscatable
stream is starting right now. So I do.
So I do want to thank our guests.
Romaine, thank you so much for joining us on the show today.
Check out Sato. Like I said, it's like Romaine
said, it's publicly listed in Canada and the US as well,
correct? Correct.
Awesome. Awesome.
OK, we. Got to get Romaine back to talk
like the implications of AI and Stratum V2 and building
templates and and what that's going to be.
OK. I would love to see and and and
on this subject I would add one thing that we didn't mention
today. It's really interesting fees,
the increase of fees are reducing the impact of cash rate
on our revenues and it's a great event today and I think it's a
great event in the future for us because minors post adding, but
anyway that's probably for another conversation.
Yeah. Thank you so much.
Remain really, really enjoyed you coming on the show.
We really appreciate it. Thank you.
Thank you so much. All right, everybody.
So the unconfiscatable live stream is up right now.
So you got all you guys got to do is you guys got to tune into
Tone Vase's YouTube channel and you'll be able to see it.
I I I was just looking at the stream a second ago and it seems
like Jack Mahler's is saying some words.
So we're going to wrap it up here, tune into the Tone Vase
channel for day two of Unconfiscatable.
We also have the Simply Bitcoin news desk during lunch, also on
the Tone Vase channel as well. So TuneIn there and guys, we'll
be back around 1:30 Pacific Time.
Peace out, everybody. In your panel later.
Yeah, yeah, yeah. I'm going to be on a mining
panel later. It's going to be interesting
debate. Public miners versus private
miners going to be interesting. Bob Burnett's going to be there.
We have Ben Gagnon from Bit Farm.
So it's going to be Huddle Tarantulas.
It's going to be a very, very exciting panel.
Anyways, we'll see you guys in a little bit.
Tune into Unconfiscatable Tone Bay's Channel, Peace Out,
everybody. Into For everyone in Twitter
Spaces, we are going to switch over to.