1 00:00:00,040 --> 00:00:02,480 All right y'all, here's a question that I see popping up 2 00:00:02,480 --> 00:00:06,400 on Bitcoin Twitter right now. Should I buy MSTR and be on team 3 00:00:06,400 --> 00:00:10,520 Sailor and team Bitcoin or should I buy BMNR and be on Team 4 00:00:10,520 --> 00:00:14,200 Tom Lee and team Ethereum? Since its first $250 million 5 00:00:14,200 --> 00:00:17,560 purchase of Bitcoin in August of 2020, MicroStrategy is grinded 6 00:00:17,560 --> 00:00:20,120 to own 3% of the entire Bitcoin network. 7 00:00:20,200 --> 00:00:22,600 It has a $70 billion enterprise value. 8 00:00:22,680 --> 00:00:28,640 It owns 687,410 Bitcoin, and it's already taken in $8 billion 9 00:00:28,640 --> 00:00:32,280 in investments in its preferred stocks, which offer a yield from 10 00:00:32,280 --> 00:00:36,240 9 1/2% to 13%. On the other hand, we have Bit 11 00:00:36,240 --> 00:00:40,760 Mine Immersion Technologies, or BMR, the Etherium powerhouse 12 00:00:40,760 --> 00:00:43,000 which now owns 3 1/2 percent of each supply. 13 00:00:43,240 --> 00:00:46,800 It's investing in moon shots like Sam Altman's world coin. 14 00:00:47,000 --> 00:00:49,480 Oh yeah, and it's now fueling the number one creator in the 15 00:00:49,480 --> 00:00:53,320 world with its recent $200 million investment in beast 16 00:00:53,320 --> 00:00:54,960 industries. They think they're going to make 17 00:00:54,960 --> 00:00:58,200 like $400 million a year just from their ETH position alone. 18 00:00:58,200 --> 00:01:00,280 The question that everybody's asking, should I back the 19 00:01:00,280 --> 00:01:03,760 scarcity driven Bitcoin or the utility pack tokenization 20 00:01:03,760 --> 00:01:06,200 features of ETH? Will the digital credit thesis 21 00:01:06,200 --> 00:01:08,960 play out or will digital tokenization reign supreme? 22 00:01:09,080 --> 00:01:12,280 Today, I'm going to give you my raw, honest opinions on both 23 00:01:12,280 --> 00:01:15,080 strategies, no pun intended. And I'm going to pick who I 24 00:01:15,080 --> 00:01:17,520 think win in the long run. This is not to Coco Bitcoin. 25 00:01:17,520 --> 00:01:23,240 Simply, let's go. I think. 26 00:01:23,240 --> 00:01:26,200 Ethereum is having its 2017 moment now. 27 00:01:26,760 --> 00:01:29,360 Because. Now is the time that Wall Street 28 00:01:29,360 --> 00:01:31,960 will take tokenization seriously, and it's taking place 29 00:01:31,960 --> 00:01:35,600 on Ethereum, so I do think it is the biggest macro trade for the 30 00:01:35,600 --> 00:01:37,720 next decade. If you guys don't know who that 31 00:01:37,720 --> 00:01:40,880 is, that is none other than the price pump price prediction king 32 00:01:41,000 --> 00:01:45,120 Tom Lee, the formerly Bitcoin OG and now ETH head the chairperson 33 00:01:45,120 --> 00:01:47,920 of bit mine immersion Technologies or BMNR. 34 00:01:47,920 --> 00:01:49,040 If you want to look up the ticker. 35 00:01:49,040 --> 00:01:52,280 BMNR is the largest corporate holder of ETH in the world. 36 00:01:52,280 --> 00:01:54,680 They're not the largest holder of ETH in the world because 37 00:01:54,680 --> 00:01:57,080 well, a lot of people got pre mine tokens, but we're not going 38 00:01:57,080 --> 00:02:00,280 to go there on this episode. They own $13 billion of the 39 00:02:00,280 --> 00:02:02,680 programmable token and they're making a huge bet on 40 00:02:02,680 --> 00:02:05,160 tokenization. Here's a thesis in a nutshell. 41 00:02:05,280 --> 00:02:09,120 Build the first Made in America validator network, invest in ETH 42 00:02:09,120 --> 00:02:12,560 development, own 5% of the Ethereum network, and make moon 43 00:02:12,560 --> 00:02:14,640 shot investments. When they first laid out the 44 00:02:14,640 --> 00:02:17,600 strategy, I thought owning 5% of the ETH network would take a 45 00:02:17,600 --> 00:02:20,000 long time, and they actually thought that it would take five 46 00:02:20,000 --> 00:02:22,560 years, but they've done it in about seven months. 47 00:02:22,560 --> 00:02:24,200 Here's how their strategy stacks up. 48 00:02:24,200 --> 00:02:27,160 Two micro strategies. Which is the company's made 49 00:02:27,160 --> 00:02:30,920 rapid progress on and getting to 5% of Ethereum. 50 00:02:31,000 --> 00:02:35,760 So that was our mission statement on June 30th when we 51 00:02:35,760 --> 00:02:40,200 launched the Ethereum treasury funded by our PIPE investors, 2 52 00:02:40,200 --> 00:02:46,880 of which are here today. And in those ensuing 6-7 months, 53 00:02:47,480 --> 00:02:52,840 as you can see, we wanted to get to 6,000,000 ETH tokens and in 54 00:02:52,840 --> 00:02:56,280 six months, we're at 4.2 million ETH. 55 00:02:56,960 --> 00:03:01,480 So we're 68% of the way to 5%. We originally thought this would 56 00:03:01,480 --> 00:03:07,640 take five years, but we're 68% of the way there in seven months 57 00:03:08,200 --> 00:03:09,360 now. Oh, thank you. 58 00:03:14,640 --> 00:03:17,400 Now we have cash, a billion dollars of cash on the balance 59 00:03:17,400 --> 00:03:21,360 sheet. So if we add the cash and said 60 00:03:21,720 --> 00:03:25,240 let's buy Ethereum with the cash, we would have four and a 61 00:03:25,240 --> 00:03:30,040 half million ETH tokens, which means we're 75% of the way to 62 00:03:30,120 --> 00:03:35,200 the alchemy 5%. So we believe if you believe 63 00:03:35,200 --> 00:03:40,400 this trajectory bit mine should cross 5% sometime this year, 64 00:03:40,720 --> 00:03:42,880 assuming the seven months continue to hold. 65 00:03:45,040 --> 00:03:49,800 And as you can see, we studied the blue chip standard for 66 00:03:49,800 --> 00:03:52,040 crypto treasury, which is micro strategy. 67 00:03:53,120 --> 00:03:58,680 And as you can see here, we have 13 billion of ETH including cash 68 00:03:59,240 --> 00:04:03,160 in a roughly seven months. At the same point, MicroStrategy 69 00:04:03,160 --> 00:04:09,040 had 3.4 billion of Bitcoin. In fact, we accumulate as much 70 00:04:09,040 --> 00:04:12,120 Ethereum as strategy accumulated, which took them 71 00:04:12,120 --> 00:04:16,440 roughly 1300 days or four years. Quick question, if there's a 72 00:04:16,440 --> 00:04:20,200 network truly valuable or even a stock, do you think if someone's 73 00:04:20,200 --> 00:04:23,800 able to acquire almost 5% of it in six months that it's as 74 00:04:23,800 --> 00:04:25,480 valuable as what everybody thinks? 75 00:04:25,480 --> 00:04:28,040 Question a ponder now investing in moonshots. 76 00:04:28,040 --> 00:04:31,160 The next part of their strategy, they just dumped $200 million 77 00:04:31,160 --> 00:04:33,920 into Beast Industries, Who is Mr. Beast? 78 00:04:33,920 --> 00:04:36,120 Well, he's the number one creator in the world. 79 00:04:36,120 --> 00:04:38,200 Dude has over 1 billion subscribers. 80 00:04:38,200 --> 00:04:40,960 His content has watched more than the Super Bowl, Netflix, 81 00:04:41,160 --> 00:04:45,360 Disney, NBC in Paramount and Tom believes that his platform will 82 00:04:45,360 --> 00:04:47,800 be the platform of choice for Gen. 83 00:04:47,800 --> 00:04:49,920 Z, Gen. Alpha and even millennial. 84 00:04:49,920 --> 00:04:53,120 The most interesting part as to what this thesis actually means 85 00:04:53,120 --> 00:04:56,560 in this collaboration is actually intended to do is he 86 00:04:56,560 --> 00:04:59,560 believes that they're going to have meaningful collaboration in 87 00:04:59,560 --> 00:05:03,400 the creation of products from Beast Financial, which filed A 88 00:05:03,400 --> 00:05:06,600 trademark application and is intending to offer insurance 89 00:05:06,600 --> 00:05:10,200 services, lending services, payment providing services, 90 00:05:10,440 --> 00:05:13,880 crypto staking, crypto rewards. Oh yeah, in banking. 91 00:05:13,920 --> 00:05:16,120 Do you think that people are they're going to switch over to 92 00:05:16,280 --> 00:05:19,760 moving their bank from JP Morgan Chase to banking with Mr. Beast, 93 00:05:19,800 --> 00:05:22,480 something to feast on? It's super interesting that this 94 00:05:22,480 --> 00:05:25,320 is the route that Jimmy Donaldson or Mr. Beast took 95 00:05:25,320 --> 00:05:27,360 because something that he was actually spurred on by Michael 96 00:05:27,360 --> 00:05:29,720 Saylor himself. And this trademark was filed 97 00:05:29,760 --> 00:05:32,600 after Michael Saylor told him, just buy Bitcoin, bro. 98 00:05:32,680 --> 00:05:36,640 So that's one side, the BMNR side, Moonshine investing, 5% of 99 00:05:36,640 --> 00:05:39,160 the ETH network, digital tokenization. 100 00:05:39,600 --> 00:05:44,320 Now let's go to the Sailor side, the MSTR side, the OG strategy 101 00:05:44,320 --> 00:05:46,760 of building a digital asset, corporate treasury strategy. 102 00:05:47,000 --> 00:05:49,880 They continue to buy a Bitcoin. As a matter of fact, last week 103 00:05:49,880 --> 00:05:54,880 they bought 1.25 billion more Bitcoin and now own 687,410 104 00:05:54,880 --> 00:05:58,320 Bitcoin, almost 3% of the entire supply of the Bitcoin network. 105 00:05:58,400 --> 00:06:01,560 Their stock MSTR has been the best performing asset over the 106 00:06:01,560 --> 00:06:04,800 past decade, only second to NVIDIA and just ahead of Bitcoin 107 00:06:04,800 --> 00:06:07,160 itself, growing about 60% a year. 108 00:06:07,200 --> 00:06:10,160 Their strategy? Digital credit issue convertible 109 00:06:10,160 --> 00:06:16,480 notes in preferred stocks like STRCSTRFSTRDSTRK. 110 00:06:16,560 --> 00:06:19,120 They raise cheap capital and then they plowed into Bitcoin. 111 00:06:19,160 --> 00:06:22,040 It's a self reinforcing loop. When Bitcoin appreciates, they 112 00:06:22,040 --> 00:06:24,320 cover their debt and they cover their obligations. 113 00:06:24,320 --> 00:06:28,400 Then they're able to issue more credit. 5 to 7% above the risk 114 00:06:28,400 --> 00:06:32,480 free rate yielding return for both their shareholders in MSTR 115 00:06:32,480 --> 00:06:34,320 and the people that own their preferred stocks. 116 00:06:34,320 --> 00:06:35,600 Here's what Michael has to say about. 117 00:06:35,600 --> 00:06:38,880 It I think the most exciting. There are a lot of ways you can 118 00:06:38,880 --> 00:06:42,840 create value from capital, but a treasury company like a Bitcoin 119 00:06:42,840 --> 00:06:46,240 treasury company or a digital treasury company, the most 120 00:06:46,240 --> 00:06:48,280 compelling thing is to create digital credit. 121 00:06:48,480 --> 00:06:51,520 I think the perfect product is I give you a Treasury credit 122 00:06:51,520 --> 00:06:57,960 instrument that pays you 8% more than the risk free rate in the 123 00:06:57,960 --> 00:07:02,000 currency that, that your expenses or your obligations 124 00:07:02,000 --> 00:07:04,240 come in. Then I'm giving you this massive 125 00:07:04,240 --> 00:07:06,560 high yield bank account. You don't need to be able to 126 00:07:06,560 --> 00:07:08,560 read. You know, a three-year old would 127 00:07:08,560 --> 00:07:11,200 get value from it. An 80 year old would get value 128 00:07:11,200 --> 00:07:12,640 from it. If you're in a coma, you would 129 00:07:12,640 --> 00:07:16,600 get value from it, right? Your unborn children will get 130 00:07:16,600 --> 00:07:19,000 value from it. It, it pretty much is the gift 131 00:07:19,000 --> 00:07:21,680 that keeps giving. It's such a good product. 132 00:07:21,720 --> 00:07:24,440 There's that the reaction of anybody would be, well, what's 133 00:07:24,440 --> 00:07:28,120 the catch? And the catch is, well, you need 134 00:07:28,120 --> 00:07:31,640 a Dynamo to power the the dividend and that's digital 135 00:07:31,640 --> 00:07:34,200 capital Bitcoin. You need to trust the 136 00:07:34,200 --> 00:07:38,680 creditworthiness of the issuer. So you want to create a digital 137 00:07:38,680 --> 00:07:41,640 treasury company that's got very transparent credit, that's got a 138 00:07:41,640 --> 00:07:46,400 lot of collateral that is understandable that acts in a 139 00:07:46,400 --> 00:07:51,480 very, a very predictable, transparent, consistent fashion 140 00:07:51,480 --> 00:07:54,080 over time. And that's what makes you credit 141 00:07:54,160 --> 00:07:57,800 worthy and that that is I think the the digital credit. 142 00:07:57,920 --> 00:08:00,840 He turned a software company making $500 million a year into 143 00:08:00,840 --> 00:08:03,920 a Bitcoin bank that's now worth 100 times as much as when he 144 00:08:03,920 --> 00:08:07,000 started in 2020. Bitcoin is a digital credit 145 00:08:07,000 --> 00:08:09,480 worthy primary instrument. They borrow money from the 146 00:08:09,480 --> 00:08:12,600 largest funds, corporations and individuals who want a greater 147 00:08:12,600 --> 00:08:14,960 than risk free return. They believe Bitcoin is the 148 00:08:15,000 --> 00:08:18,000 ultimate collateral and their creditworthiness is what people 149 00:08:18,000 --> 00:08:20,320 are investing in. Is the company credible or not? 150 00:08:20,480 --> 00:08:22,920 Do they have too much debt relative to their overall 151 00:08:22,920 --> 00:08:26,200 Bitcoin balance and assets? Here's Tom Lee strategy a little 152 00:08:26,200 --> 00:08:29,240 bit different in how they're thinking about paying out their 153 00:08:29,240 --> 00:08:33,760 shareholders from their staking rewards when you invest in BMNR. 154 00:08:33,880 --> 00:08:39,159 Growth. The first is to maximize yield 155 00:08:39,159 --> 00:08:42,280 on Ethereum. OK, So we're going to optimize a 156 00:08:42,280 --> 00:08:46,120 staking yield. The Caesar benchmark is 2.8. 157 00:08:46,280 --> 00:08:50,720 We're going to try to do better. One way we do it, at least one 158 00:08:50,720 --> 00:08:54,040 way that we've talked about it, is to pursue alpha strategies. 159 00:08:55,200 --> 00:08:59,320 Now the, the entity that'll execute this for us is Mosaics 160 00:08:59,320 --> 00:09:04,480 Capital, but we also have an advisor, Tom Demark of Demark 161 00:09:04,480 --> 00:09:08,200 Analytics. For those who are Boomers or 162 00:09:08,240 --> 00:09:11,360 older Gen. X, Tom Demark is iconic. 163 00:09:12,600 --> 00:09:16,120 He is the one of the most famous market timing people. 164 00:09:16,120 --> 00:09:19,920 He has won so many awards. He only has two clients. 165 00:09:22,120 --> 00:09:24,320 I believe he's disclosed this. Well, I don't think he's 166 00:09:24,320 --> 00:09:26,160 disclosed his first client, so I'm not going to name it. 167 00:09:26,440 --> 00:09:31,200 We are his only other client, and I showed you that slide 168 00:09:31,200 --> 00:09:34,840 where we bought 2.4 billion of ETH in the last two months. 169 00:09:35,880 --> 00:09:40,640 Tom Demark's strategies, along with Mosaic execution probably 170 00:09:40,640 --> 00:09:44,080 saved US $400 million on those purchases. 171 00:09:44,960 --> 00:09:49,480 So think about that. We bought ETH in a way that made 172 00:09:49,480 --> 00:09:52,680 you guys money. So don't shake your fist at ETH 173 00:09:52,680 --> 00:09:54,800 when it's down. We like it when it's declining. 174 00:09:54,800 --> 00:10:01,200 OK, All right. But here's where I can give you 175 00:10:01,200 --> 00:10:06,320 some imagination. We have 13 billion to be. 176 00:10:06,320 --> 00:10:11,680 So imagine Proposal 2 didn't pass and we're stuck in the 177 00:10:11,680 --> 00:10:15,520 water. We don't buy another dollar V 178 00:10:16,560 --> 00:10:18,600 for the rest of the history of the company. 179 00:10:19,800 --> 00:10:24,600 But using the stake and yield and with some optimization that 180 00:10:24,600 --> 00:10:29,240 would generate 367 to 390,000,000 a year in rewards. 181 00:10:30,520 --> 00:10:34,200 We have a billion in cash that would generate another 35 to 40 182 00:10:34,200 --> 00:10:36,840 million. The company will generate 400 to 183 00:10:36,840 --> 00:10:40,320 $433 million a year in pre tax income. 184 00:10:40,360 --> 00:10:44,600 That's more than $1,000,000 a day and that's been achieved in 185 00:10:44,600 --> 00:10:47,240 six months. I think a company that goes from 186 00:10:47,240 --> 00:10:51,480 zero to in seven months to a company that can make 400 187 00:10:51,480 --> 00:10:54,160 million a year, that's quite an achievement. 188 00:10:54,160 --> 00:10:57,040 But of course, thank you for the stockholders for getting us 189 00:10:57,040 --> 00:11:01,640 here. But let's think about a future 190 00:11:01,640 --> 00:11:05,320 scenario. Let's say that ETH's price stays 191 00:11:05,320 --> 00:11:08,800 at 3000, but we get to 5% of ETH. 192 00:11:09,840 --> 00:11:13,800 That number rises to 542 million to 583,000,000. 193 00:11:15,400 --> 00:11:18,240 But I think ETH is grossly undervalued. 194 00:11:18,760 --> 00:11:23,600 OK, let's say a proper price for ETH is 12,000. 195 00:11:24,600 --> 00:11:26,160 OK. And I'll explain in a later 196 00:11:26,160 --> 00:11:32,760 section how I get to 12. Then the annual rewards and 197 00:11:32,760 --> 00:11:37,960 interest jumped to 2 billion to 2.2 billion, OK, that would make 198 00:11:37,960 --> 00:11:40,840 US1 of the 20 most profitable companies in America. 199 00:11:41,120 --> 00:11:45,720 So or maybe 30th most, but it's really up there. 200 00:11:46,280 --> 00:11:53,720 OK, So that's why if our vision is correct on Ethereum and we're 201 00:11:53,720 --> 00:11:57,800 generating this level of rewards and income, you don't want us to 202 00:11:57,800 --> 00:12:02,680 just be a staking entity. OK, So that gets us to the 203 00:12:02,680 --> 00:12:05,040 second, which is we want to invest in moonshots. 204 00:12:05,520 --> 00:12:09,040 So far we've done 2. We will do more orbs and 205 00:12:09,040 --> 00:12:11,840 Worldcoin. We want to accelerate 206 00:12:11,840 --> 00:12:15,720 tokenization products. We want to work with the L twos 207 00:12:16,480 --> 00:12:19,800 and the Defys, the leading projects, including something 208 00:12:19,800 --> 00:12:21,880 like lighter and we'll I'm going to have a fireside chat with 209 00:12:21,880 --> 00:12:25,280 Vlad today about Lighter and why you really should pay attention 210 00:12:25,280 --> 00:12:30,160 to lighter and its token. And you know, we're really 211 00:12:30,160 --> 00:12:32,560 excited about this beast industries moon shot. 212 00:12:33,640 --> 00:12:38,520 OK, but just to remind you bit mine invested in Aiko $20 213 00:12:38,520 --> 00:12:41,040 million. OK Worldcoin. 214 00:12:41,760 --> 00:12:46,040 It was founded in 2019 by Sam Altman, who's the open AI CEO, 215 00:12:46,080 --> 00:12:51,000 and Alex Blania. They have built an incredible 216 00:12:51,000 --> 00:12:55,720 technology for proof of human. It is the only way to verify 217 00:12:55,800 --> 00:12:59,600 your humanity today using an iris scan. 218 00:12:59,600 --> 00:13:02,440 They're not scanning your iris. They're using your iris to 219 00:13:02,440 --> 00:13:06,160 create a cryptographic hash. But that is unique. 220 00:13:06,280 --> 00:13:09,720 Out of 7 billion people, that would be the only number 221 00:13:10,200 --> 00:13:12,280 cryptographically unique identification. 222 00:13:12,280 --> 00:13:14,800 It's the only thing more secure is a fingerprint. 223 00:13:16,840 --> 00:13:20,640 And eco's done well. They hold 10% of the circulating 224 00:13:20,640 --> 00:13:25,880 supply of Worldcoin 11,000 ETH 69,000,000 cash and they 225 00:13:25,880 --> 00:13:30,440 verified 17,000,000 humans. The world coin app, if you 226 00:13:30,440 --> 00:13:33,800 haven't downloaded it, it's it's almost an Omni app. 227 00:13:33,800 --> 00:13:38,040 It's that good. And they've done some cool pilot 228 00:13:38,080 --> 00:13:42,440 pilot partnerships to do proof of human verification, sort of a 229 00:13:42,440 --> 00:13:45,240 single sign on with Kraken and Coinbase. 230 00:13:46,000 --> 00:13:48,160 And they've also made strategic investments into something like 231 00:13:48,160 --> 00:13:51,080 mythical. OK. 232 00:13:52,240 --> 00:13:56,240 And of course, you know, tokenization is the future and 233 00:13:56,240 --> 00:13:57,960 that's why we want to do moon shots. 234 00:13:57,960 --> 00:14:00,120 So couple things here. They believe that they can 235 00:14:00,120 --> 00:14:04,440 generate about $400 million a year in profit just from staking 236 00:14:04,440 --> 00:14:07,480 their ETH, but that they're only going to earn 4 to 5% from which 237 00:14:07,480 --> 00:14:09,000 that they will pay out a dividend. 238 00:14:09,120 --> 00:14:11,920 The four or 5% that they earn in gas fees isn't even going to 239 00:14:11,920 --> 00:14:14,560 outpace inflation. So I have some questions here. 240 00:14:14,800 --> 00:14:17,600 If you are a shareholder, would there not be a better in a 241 00:14:18,160 --> 00:14:20,640 superior place where you should invest those assets? 242 00:14:20,680 --> 00:14:22,880 If not, why not just buy treasuries? 243 00:14:22,960 --> 00:14:26,280 Oh, it's because you believe in their venture capital arm or the 244 00:14:26,280 --> 00:14:29,360 investments that they're making into coins like World Coin or 245 00:14:29,360 --> 00:14:33,080 orbs, the only proof of human technology out there in the 246 00:14:33,080 --> 00:14:34,320 world. They're going to scan your 247 00:14:34,320 --> 00:14:37,040 eyeball in your retina and allow you to check in at places where 248 00:14:37,040 --> 00:14:38,960 you don't want your privacy revealed. 249 00:14:38,960 --> 00:14:40,680 Seems like something that you should invest in. 250 00:14:40,760 --> 00:14:43,680 Do you believe in Tom Lee is a venture capital investor or not? 251 00:14:43,920 --> 00:14:46,480 If you do, then I would invest wholeheartedly. 252 00:14:46,480 --> 00:14:49,880 But that's a risky game. A lot of bets are going to go to 253 00:14:49,880 --> 00:14:53,720 0, and you can best believe that if there's a possibility of more 254 00:14:53,720 --> 00:14:56,880 fraud, there will be more fraud. We've seen this play out in the 255 00:14:56,880 --> 00:14:59,880 crypto industry in the crypto casinos for the last five years. 256 00:14:59,880 --> 00:15:02,240 The real thing that you're investing in really isn't Tom 257 00:15:02,240 --> 00:15:05,680 Lee or BMNR or MSTR or Michael Saylor. 258 00:15:05,800 --> 00:15:09,000 It's really about do you believe in Bitcoin long term or Ethereum 259 00:15:09,000 --> 00:15:12,360 long term, Digital credit, digital gold in the era of 260 00:15:12,360 --> 00:15:15,560 scarcity in abundance or digital tokenization. 261 00:15:15,600 --> 00:15:18,440 What do you think's a bigger market or is the value of wealth 262 00:15:18,440 --> 00:15:21,880 all across the world or improving the flows and taking a 263 00:15:21,880 --> 00:15:24,760 piece of payment networks in tokenizing the economy? 264 00:15:24,920 --> 00:15:26,880 Do you believe that Bitcoin is going to have a fixed supply of 265 00:15:26,880 --> 00:15:30,000 21 million or not? Or do you believe in Vitalik who 266 00:15:30,000 --> 00:15:32,680 says that they just solved the hardest computer problem in the 267 00:15:32,680 --> 00:15:35,760 world, the blockchain trilemma? It says you can only solve for 268 00:15:35,760 --> 00:15:39,760 scalability, security and decentralization, but you can 269 00:15:39,760 --> 00:15:43,360 only pick two out of the three. Well, he believes that somehow 270 00:15:43,400 --> 00:15:45,840 either is going to be able to solve all three, despite what 271 00:15:45,840 --> 00:15:47,840 people have been working on for the past 6 the year. 272 00:15:47,840 --> 00:15:51,560 ZKEVMS and Peer Das is going to be the way that you can transfer 273 00:15:51,560 --> 00:15:53,520 data and have offline transaction. 274 00:15:53,560 --> 00:15:55,640 It's going to make fundamentally new. 275 00:15:55,720 --> 00:15:58,200 Before we go any further and I give my real thought to my real 276 00:15:58,200 --> 00:16:00,560 verdict on what you should be thinking about when you're 277 00:16:00,560 --> 00:16:02,400 thinking about these two sorts of investments. 278 00:16:02,560 --> 00:16:04,520 Well, we're going to go thank our sponsors first. 279 00:16:04,640 --> 00:16:07,120 Lenin has been the leader in Bitcoin back loan since 2018, 280 00:16:07,120 --> 00:16:10,240 issuing over $10 billion worth of loans, which are back 2 to 281 00:16:10,240 --> 00:16:12,280 one versus the Fiat that they're delivered in. 282 00:16:12,280 --> 00:16:16,120 Meaning if you want a $1000 loan in Fiat and you don't want to 283 00:16:16,120 --> 00:16:19,320 sell your Bitcoin, will you post $2000 in Bitcoin collateral? 284 00:16:19,400 --> 00:16:21,880 The Bitcoin ends up in cold storage and a wallet address 285 00:16:21,880 --> 00:16:24,280 that you can see and they've never lost a single SAT or cent 286 00:16:24,280 --> 00:16:27,000 of customer money and the Fiat it gets into your account in 287 00:16:27,000 --> 00:16:29,240 less than six hours. You can pay it off anytime 288 00:16:29,240 --> 00:16:32,000 without any fees, there's no credit checks and it's about 289 00:16:32,000 --> 00:16:34,880 half as much as you would pay if you were getting a credit card. 290 00:16:34,880 --> 00:16:37,200 So if you're not going to sell your Bitcoin and you don't want 291 00:16:37,200 --> 00:16:40,000 to go into debt or be in the credit game, then why not borrow 292 00:16:40,000 --> 00:16:42,240 2 to one if you're going to be responsible and pay it off 293 00:16:42,240 --> 00:16:43,680 anyway. Latin's a great product if 294 00:16:43,680 --> 00:16:46,400 that's for you. Loan started just 12.4%, about 295 00:16:46,400 --> 00:16:48,040 half of what you could get for a credit card. 296 00:16:48,080 --> 00:16:51,840 Or you can get .25% off your first loan by going to learn dot 297 00:16:51,840 --> 00:16:53,240 LED dot AO slash. Simply. 298 00:16:53,280 --> 00:16:55,800 Let's get back to our show. Sometimes when we talk about 299 00:16:56,640 --> 00:16:59,640 what you should do, sometimes it's better to watch what people 300 00:16:59,640 --> 00:17:02,240 actually do versus what they say and what they promote online. 301 00:17:02,320 --> 00:17:06,359 And did you know Jimmy Donaldson or Mr. Beast was a Bitcoiner 302 00:17:06,359 --> 00:17:07,680 before anything else? Someone. 303 00:17:07,680 --> 00:17:09,280 Broke in and stole all my clothes. 304 00:17:09,319 --> 00:17:11,280 He also took my Bitcoin at the time too. 305 00:17:11,359 --> 00:17:14,319 But he's a idiot. So I had like a laptop like 306 00:17:14,319 --> 00:17:17,400 this, like right here was just written my private. 307 00:17:17,880 --> 00:17:22,079 I just said Bitcoin private key. It's like, and I go in there, I 308 00:17:22,079 --> 00:17:23,720 can't find my laptop. I'm like, God damn it. 309 00:17:24,040 --> 00:17:25,000 They just stole everything I own. 310 00:17:25,000 --> 00:17:27,280 And then I just run over to my desktop, which they didn't 311 00:17:27,280 --> 00:17:30,080 steal, but my my laptop. I pull my private key up there 312 00:17:30,240 --> 00:17:32,640 and I'm like crying and like it's not going to be there. 313 00:17:32,800 --> 00:17:35,160 It literally says Bitcoin private key on my laptop. 314 00:17:35,160 --> 00:17:37,360 He said. And I'm like, they just took it. 315 00:17:37,360 --> 00:17:40,120 There's like $2,000,000 which is every dollar to my name at that 316 00:17:40,120 --> 00:17:43,960 point because I like took like a couple like 100 grand one month 317 00:17:44,160 --> 00:17:46,120 put in Bitcoin. Bitcoin like skyrocketed and I 318 00:17:46,120 --> 00:17:48,880 was literally just about to sell and fund a bunch of videos and 319 00:17:48,880 --> 00:17:51,440 I'm like crying as I'm loading it up and my heart is pounding. 320 00:17:51,440 --> 00:17:55,040 I'm like please it's there. It's all there and I moved it 321 00:17:55,040 --> 00:17:56,960 real quick and like that robbers up. 322 00:17:56,960 --> 00:18:04,120 He's busy shooting my TV like blanket instead of the Bitcoin 323 00:18:04,120 --> 00:18:06,160 that was sitting right there. Idiot. 324 00:18:07,080 --> 00:18:09,960 But unlike Jimmy Donaldson, you need to learn how to protect 325 00:18:09,960 --> 00:18:13,160 your Bitcoin by not writing your Bitcoin private key on the front 326 00:18:13,160 --> 00:18:14,720 of your computer. Work with the team and the 327 00:18:14,720 --> 00:18:17,560 experts at the bitcoinway.com. They'll walk you through exactly 328 00:18:17,560 --> 00:18:20,680 how not to lose $2,000,000 worth of your Bitcoin like Jimmy 329 00:18:20,680 --> 00:18:23,320 Donaldson almost did when his apartment was broken into. 330 00:18:23,320 --> 00:18:25,560 Schedule a free 30 minute consultation with the team at 331 00:18:25,560 --> 00:18:29,360 the bitcoinway.com/simplybitcoin and don't write your private 332 00:18:29,360 --> 00:18:30,520 keys on the front of your computer. 333 00:18:30,680 --> 00:18:32,440 All right, so here's my real thoughts on whether you should 334 00:18:32,440 --> 00:18:35,440 invest into BMNR or MSTR. And I don't think it's 335 00:18:35,440 --> 00:18:37,040 fundamentally about those two things at all. 336 00:18:37,320 --> 00:18:39,400 Also, I don't think of that you're investing in Michael 337 00:18:39,400 --> 00:18:41,160 Saylor in the long term or Tom Lee. 338 00:18:41,520 --> 00:18:44,800 These are just people who are able to educate investors to get 339 00:18:44,800 --> 00:18:47,360 new investors in cheap dollars because they're so good at what 340 00:18:47,360 --> 00:18:49,320 they do. Both of them are persuasive. 341 00:18:49,320 --> 00:18:51,920 Both of them are really intelligent, super brilliant 342 00:18:51,920 --> 00:18:54,600 guys who have been through the markets and been in seeing the 343 00:18:54,600 --> 00:18:57,240 ups and downs in the new waves of innovation and technology. 344 00:18:57,280 --> 00:18:58,840 I think it's a wash on both sides. 345 00:18:58,840 --> 00:19:01,400 I do think Michael Saylor might have a little edge in terms of 346 00:19:01,400 --> 00:19:04,120 competency and skill set versus Tom Lee, but they're both 347 00:19:04,120 --> 00:19:06,000 phenomenal. So that's not really what you're 348 00:19:06,000 --> 00:19:07,720 investing in. What you're really investing in 349 00:19:07,720 --> 00:19:10,440 is do I believe in ETH long term or do I believe in Bitcoin long 350 00:19:10,440 --> 00:19:12,080 term? One of the things that I think 351 00:19:12,080 --> 00:19:14,880 that you should be thinking about in the age of AI, when 352 00:19:14,880 --> 00:19:18,960 computers are able to replicate code and digital ones and zeros 353 00:19:18,960 --> 00:19:22,640 at infinite scale, especially as we find new sources of energy. 354 00:19:22,880 --> 00:19:26,040 It's not about abundance. It's about can I invest in the 355 00:19:26,040 --> 00:19:28,160 things that are actually scarce that are truly. 356 00:19:28,680 --> 00:19:31,720 And this is the conversation that Jordi Visser and Pomp had 357 00:19:31,760 --> 00:19:33,800 last week, which I think is phenomenal. 358 00:19:33,800 --> 00:19:36,120 And I think it's the fundamental question that you should be 359 00:19:36,120 --> 00:19:40,760 asking when you think about BMNR versus MSTR or Bitcoin versus 360 00:19:40,760 --> 00:19:43,480 Ethereum where? We're going to have deflation is 361 00:19:43,480 --> 00:19:46,840 encoding related things. The one thing Elon Musk also 362 00:19:46,840 --> 00:19:48,800 says is, see, I got to write again for the second time. 363 00:19:50,280 --> 00:19:52,760 We're running into constraints in the physical world. 364 00:19:52,760 --> 00:19:57,400 The problem is the energy sector is 3% of the S&P 500. 365 00:19:57,480 --> 00:20:00,240 The material sector, I think is 1 in change, maybe 2. 366 00:20:00,240 --> 00:20:03,240 Combined, they're five. The tech sector, when you take 367 00:20:03,240 --> 00:20:06,480 out the consumer, just like Amazon and stuff like this, it's 368 00:20:06,480 --> 00:20:09,520 like 50. So maybe we'll have deflation 369 00:20:09,520 --> 00:20:13,800 affecting the 50% that's built on, on, on, on, on code. 370 00:20:14,480 --> 00:20:18,120 But the other 5% that's based on true supply and demand scarcity 371 00:20:18,280 --> 00:20:21,240 will actually go higher. We are entering a world when he 372 00:20:21,240 --> 00:20:23,880 talks about abundance. You want to be long scarcity. 373 00:20:24,120 --> 00:20:27,800 You want to be absolutely long scarcity, because abundance is a 374 00:20:27,800 --> 00:20:30,400 dangerous thing for code. Because basically with the 375 00:20:30,400 --> 00:20:33,960 argument you're making is things that are abundant or not 376 00:20:33,960 --> 00:20:38,240 valuable usually, and the scarcity of Bitcoin, even if 377 00:20:38,240 --> 00:20:41,600 there's deflation, the scarcity of Bitcoin is the like black 378 00:20:41,600 --> 00:20:44,000 hole that sucks all this capital and it can kind of protect it in 379 00:20:44,000 --> 00:20:45,320 the way that it can't be protected. 380 00:20:45,320 --> 00:20:47,680 Anywhere else? One thing about Elon Musk that's 381 00:20:47,680 --> 00:20:51,560 very interesting, if you ask him, and he's been asked this on 382 00:20:51,560 --> 00:20:54,120 moon shots in other places, what do you think about money? 383 00:20:54,120 --> 00:20:56,560 He he's perplexed. He's like, I don't know how 384 00:20:56,560 --> 00:21:00,920 money fits into the equation. And I believe money fits in from 385 00:21:00,920 --> 00:21:04,440 the the sapiens perspective, which is we actually need 386 00:21:04,440 --> 00:21:07,840 transactions to happen. It's going to take us a long 387 00:21:07,840 --> 00:21:11,360 time to get off of that. So even if I'm right, that Fiat 388 00:21:11,360 --> 00:21:14,800 assets basically stop going higher and they kind of go 389 00:21:14,800 --> 00:21:17,840 sideways and that money starts rotating and chasing into 390 00:21:17,840 --> 00:21:22,440 something that has scarcity. So it Bitcoin is more related 391 00:21:22,440 --> 00:21:26,920 now to copper, silver, gold, it everyone always thought of it 392 00:21:26,920 --> 00:21:29,080 that way, but I think this is now about scarcity. 393 00:21:29,080 --> 00:21:32,760 So I believe this is the year that abundance becomes an 394 00:21:32,760 --> 00:21:36,720 investable theme on the short side for the MAG 7, for software 395 00:21:36,720 --> 00:21:38,200 companies, for all of this stuff. 396 00:21:38,440 --> 00:21:42,520 And the things that start to become investments are the ones 397 00:21:42,520 --> 00:21:45,440 that are scarce, that are very difficult to make abundant. 398 00:21:45,600 --> 00:21:48,320 You cannot flip a switch and make copper abundant. 399 00:21:48,400 --> 00:21:50,440 And he's the first person who admitted he said that in the 400 00:21:50,440 --> 00:21:52,640 exact same episode. So a couple different questions 401 00:21:52,640 --> 00:21:55,040 that come out of here for me. When you think about what's 402 00:21:55,040 --> 00:21:58,320 actually scarce in the world, is Etherium actually scarce? 403 00:21:58,720 --> 00:22:01,560 So they were able to acquire so much of the scarce asset and 404 00:22:01,560 --> 00:22:04,840 network almost 5% of it in seven months. 405 00:22:04,880 --> 00:22:08,160 But do you think that 5% is going to continue to be 5% or do 406 00:22:08,160 --> 00:22:10,440 you think that they're going to continue to print more tokens in 407 00:22:10,440 --> 00:22:14,280 a proof of stake security model? There's no one to say that they 408 00:22:14,280 --> 00:22:17,200 can't create more tokens and issue more things, especially as 409 00:22:17,200 --> 00:22:20,120 more people begin to use it as Mr. Beast drives a billion users 410 00:22:20,120 --> 00:22:22,800 onto the platform. Well, gas fees are going to go 411 00:22:22,800 --> 00:22:25,120 up. And when gas fees go up, in 412 00:22:25,120 --> 00:22:28,000 order to keep the prices low for Jamie Dimon and everyone else 413 00:22:28,000 --> 00:22:31,080 building private ties, block chains and their own financial 414 00:22:31,080 --> 00:22:33,240 tools, while they're going to have to print more tokens and 415 00:22:33,240 --> 00:22:34,960 allow people to issue more tokens. 416 00:22:35,160 --> 00:22:36,920 And so that's a question that I have. 417 00:22:37,080 --> 00:22:39,360 Speaking of Jamie Dimon and these people on Wall Street, 418 00:22:39,520 --> 00:22:42,600 when these private block chains are created, do you think that 419 00:22:42,600 --> 00:22:45,080 they're going to be sharing all of the validator fees and the 420 00:22:45,080 --> 00:22:48,000 gas fees with everyone in the entire network because they just 421 00:22:48,000 --> 00:22:50,360 care about them from the bottom of their heart? 422 00:22:50,600 --> 00:22:52,440 Well, no, that's not how the system works. 423 00:22:52,640 --> 00:22:56,520 In a more centralized system, well, you have the ability to 424 00:22:56,520 --> 00:22:59,640 choose the winners and not with Bitcoin, it's a completely 425 00:22:59,640 --> 00:23:02,840 randomized process. People with solo miners in their 426 00:23:02,840 --> 00:23:07,640 homes are winning full blocks, and that's because no person is 427 00:23:07,640 --> 00:23:09,480 choosing who's the winner and who isn't. 428 00:23:09,600 --> 00:23:11,680 That's the difference between proof of work and proof of 429 00:23:11,680 --> 00:23:13,440 stake. And so when Michael Saylor and 430 00:23:13,440 --> 00:23:17,200 their team own 3.2% of the Bitcoin network, well, do you 431 00:23:17,200 --> 00:23:19,040 believe that that's going to go down over time? 432 00:23:19,160 --> 00:23:21,040 Well, I don't think that they're creating more coins. 433 00:23:21,160 --> 00:23:23,280 As a matter of fact, I think more people are losing their 434 00:23:23,280 --> 00:23:27,160 coins than finding new coins. So what that means is their 435 00:23:27,360 --> 00:23:30,240 percentage of ownership of this digitally scarce network is 436 00:23:30,240 --> 00:23:33,400 going to go up over time. I think that's a more valuable 437 00:23:33,400 --> 00:23:35,120 asset. Will the number of dollars 438 00:23:35,120 --> 00:23:37,000 increase more than the supply of Bitcoin? 439 00:23:37,080 --> 00:23:39,120 Yes. Will the number of dollars 440 00:23:39,120 --> 00:23:41,920 increase more than the tokens created on these digitalized 441 00:23:41,920 --> 00:23:43,840 platforms? I don't know. 442 00:23:44,320 --> 00:23:47,040 Nobody knows. And but what we do know over the 443 00:23:47,040 --> 00:23:50,040 past five years is that people are going to create tokens for 444 00:23:50,040 --> 00:23:53,840 everything when Beast Coin comes out, just like every other coin 445 00:23:53,840 --> 00:23:57,560 that's been created, what is to say who got the coins first? 446 00:23:57,560 --> 00:23:59,440 What's the pre mine? Are they going to dump it on 447 00:23:59,440 --> 00:24:01,240 you? Is it actually going to be used 448 00:24:01,240 --> 00:24:04,360 and able to be used at a restaurant or somewhere else in 449 00:24:04,360 --> 00:24:06,640 the world with real value and real utility? 450 00:24:06,640 --> 00:24:09,840 Or is it going to be privatized to this closed garden and closed 451 00:24:09,840 --> 00:24:13,440 network In the long term? I'm thinking that MSTR is going 452 00:24:13,440 --> 00:24:16,600 to be the winner over BMNR and not because of what's happening 453 00:24:16,600 --> 00:24:19,440 in finance and the market structure, alliance bill and 454 00:24:19,440 --> 00:24:22,480 what's going on in crypto, but because I fundamentally believe 455 00:24:22,480 --> 00:24:24,880 in Bitcoin more than ETH over the next decade. 456 00:24:24,880 --> 00:24:27,160 Tom Lee says it's going to be the big macro trade in the next 457 00:24:27,160 --> 00:24:29,600 decade. I think $100 trillion flowing 458 00:24:29,600 --> 00:24:32,800 into a digital credit network with credit worthy instruments 459 00:24:32,800 --> 00:24:35,440 like Bitcoin is going to win bigger than that because that's 460 00:24:35,440 --> 00:24:37,880 what the world is used to. We don't need another token. 461 00:24:37,880 --> 00:24:39,040 We don't need another blockchain. 462 00:24:39,040 --> 00:24:41,200 They already have these systems that happened behind closed 463 00:24:41,200 --> 00:24:43,560 doors and those walls and they're not sharing the profits 464 00:24:43,560 --> 00:24:46,400 with you and me. And getting a dividend from a 465 00:24:46,400 --> 00:24:50,480 four to 5% stake when the inflation rate is 5% doesn't do 466 00:24:50,480 --> 00:24:52,960 anything. I need 9%, I need 10%. 467 00:24:53,080 --> 00:24:55,760 I need a hurdle rate higher than the rate of inflation or my 468 00:24:55,760 --> 00:24:58,560 expenses are growing. So those are my thoughts and 469 00:24:58,560 --> 00:25:00,320 that's my real thoughts and concerns. 470 00:25:00,320 --> 00:25:03,160 One of the ways you can continue to grow in your journey is by 471 00:25:03,160 --> 00:25:06,400 not just buying Bitcoin, spot Bitcoin and on exchanges or 472 00:25:06,400 --> 00:25:11,240 buying credit instruments or stocks like MSTRSTRC. 473 00:25:11,360 --> 00:25:14,120 You can get actual Bitcoin through Bitcoin mining and you 474 00:25:14,120 --> 00:25:16,680 can depreciate the full amount of Bitcoin mining against your 475 00:25:16,680 --> 00:25:18,880 capital gains or other things that you might have in that 476 00:25:18,880 --> 00:25:22,800 year, making it a fantastic tool to build in an optimal tax 477 00:25:22,840 --> 00:25:25,760 optimized portfolio. Talk to an accountant or an 478 00:25:25,760 --> 00:25:28,160 advisor to do that. One of the ways you can do that 479 00:25:28,160 --> 00:25:31,000 is by not owning these machines on your own but working with a 480 00:25:31,000 --> 00:25:33,920 company like SAS Mining. SAS Mining is 100% aligned with 481 00:25:33,920 --> 00:25:36,720 Bitcoin or values. They have 100% clean renewable 482 00:25:36,720 --> 00:25:40,680 energy sources and no markups, no contracts, no middle men, no 483 00:25:40,680 --> 00:25:43,120 people blocking you from sats flowing straight to your wallet. 484 00:25:43,400 --> 00:25:46,120 They maintain the machines, they maintain the uptime, they do the 485 00:25:46,120 --> 00:25:48,160 fixes on your machines. You just get sats. 486 00:25:48,480 --> 00:25:50,760 Use the QR code to get started with SAS mining today. 487 00:25:50,840 --> 00:25:52,120 Thank you for rocking with me today. 488 00:25:52,120 --> 00:25:55,320 Those are my real thoughts on the MSTR versus BMNR debate. 489 00:25:55,640 --> 00:25:58,480 This is Dante Coke with Bitcoin. Simply happy stacking.