Hey there, this is from Constana.
You're listening to Bitcoin for Millennials.
With my guests on this podcast, I go on a journey to discover
how our current financial system works, why it's flawed, and why
Bitcoin is the most relevant technological discovery that you
should understand and adopt. In this episode episode, I'm
joined again by Eric Fee Stacks. He's a cannabis farmer in
Northern California and an incredible Bitcoin content
creator. So I'm super excited to talk
with him again and jam together about different Bitcoin topics.
And we're doing it live. Welcome man.
Hey man, thanks for having me. Awesome.
See you again after our time together in Madeira.
Yeah, man. How did you find that?
So I went to Pacific Bitcoin in October.
That was the first Bitcoin gathering that I had been to.
It was actually the first time that I had been around any other
bitcoiners in real life or in Meet Space.
And at the time I hadn't posted anything on Twitter so nobody
knew who I was or anything. And so it was kind of a very
surreal experience being around so many like minded individuals
and then getting feedback from people who have like watched
some of my content and like making these connections in the
real world with people that I've like been messaging back and
forth with like you're one of them.
It was a powerful experience. The energy is so incredible at
these with with bitcoiners, especially when you put so many
of them in one space. Everybody is happy and
optimistic and healthy. It's really a a very energizing,
empowering and like motivating social gathering.
It really is. It's on another level.
Yeah, yeah, man. I loved it too.
I think. I think you have the same
experience, right? Like this.
You're like IRL circle is very small, like your real life
circle is very small. Like people you actually talk
talk with about about Bitcoin. And I have exactly the same.
Actually my first conference was in Amsterdam like late last year
and I had the exact same feeling, like I just went alone
and I went to a talk of rational roots, I think.
And I was just standing there and it was backed like I was
standing in the back in the hallway and I was like, wow,
this is like all these people are into the same thing, you
know? And and I never realized that
there were so many people, you know, even though maybe there's
like 1000 or 2000 people walking around or something, it's just
already way bigger than what I experienced before.
And of course we have like online and audience and that's
hundreds or sometimes thousands of people, you know, who listen.
But that is it's different. It's it's it's really different
when you feel like the real energy with real people.
And especially for me, that first talk of Jack Mahler's in
Madeira, it was like, I'm going to explain Bitcoin you said.
And I thought, well, I know this.
I know this stuff. But honestly that was maybe the
best Bitcoin explainer I've I've seen in the past ten years.
And you could feel the energy of the people like, wow, OK, look
at this guy talk and and how he was transmitting his energy.
You know, like, how did you feel that?
I think it's there's something there where, like you with
Bitcoin, you always have to maintain this era of humility.
You got to, you got to expect that you're going to learn
something new or you're going to learn the next layer.
You're going to go deeper, deeper into the rabbit hole.
And if you don't maintain that era of humility like you'll get
wrecked even if it's in like hey I missed out on listening to
Jack Mahler's say something that was really important and thought
provoke provoking because I thought I knew he was going to
say something that or I thought I knew what he was going to say.
And so yeah, I always, you know, I I maintain that humility and I
think it's also important in life at least for me to to to
keep in mind that at any point, at any time everything that you
ever thought was true or you believed could completely be
shattered and disrupted. It's like the it's the it's like
the anti cognitive dissonance, right.
And like maintaining that is I think very important and it
keeps you open, it keeps you malleable.
It keeps it so that you can continue to learn.
And I think, and it's actually like in normie land, I find that
the people who are the hardest to talk to about Bitcoin are the
most educated because they developed this hubris and this
idea that, like, they've got it all figured out and they can
explain the nebulous, ambiguous Keynesian bullshit lie.
And it's all you could never understand.
And like, so I just find that, like, I don't know, just being
open to the notion that, like, you're about to learn something
new at any point from anybody. I think it's a very important
thing, you know? Otherwise, we end up, like,
really stifling the flow of of knowledge and experience in life
as soon as you, you know, kind of make the decision that you've
got it all figured out. And so, you know, I think that
was a great example with Jack Mahler's I'm going to explain
Bitcoin. I'm sure half the people were
like, oh, OK, I'm going to start tweeting or start, you know, I'm
going to walk out and get breakfast.
And then there he just drops the heat, dude, on a whole new
level. So yeah, I love it.
Hey there. Thanks so much for listening to
this episode. I just really want to ask you
for a quick favor. Over the last few months, I've
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The most important thing I'm currently focusing on, next to
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Thanks again for joining me on this journey.
Now back to the conversation 100%.
But I also, I think what you said, it is the cognitive
dissonance and the comfort people find in not not leaning
into that, right. Probably unconsciously as well,
right? Like subconsciously in a sense
that they they feel the resistance.
Like in some way they they listen to you because they have
a first impression of you. You know when you when you talk
to people like, OK, this is maybe a smart guy or he's
enthusiastic about Bitcoin or something.
But then at one point along the conversation, something triggers
them that closes them down instead of leaning into it.
Like, OK, you know, I know that I don't know everything.
And so it's actually interesting and fun to hear this other
person out and see how that can help me maybe change my mind or
think better or learn something like you said.
And just, I don't know, like I also feel lucky a bit like I am
like that, you know, I like to learn stuff.
I like to dig into stuff. So I, I, I, I do understand that
it is a certain personality trait.
But like the total other side of that like actually today I was
on LinkedIn. I got into this discussion like
I shouldn't have done that. But you know there's people that
are so aggressively wrong about Bitcoin that I am like I'm I'm.
I feel empathetic. As in like I would love to save
you, but I cannot save you and and save saving those people is
not even about you have to buy Bitcoin, but more like please
understand that you are wrong. Like your argument is just so
flawed you're getting worked up over something you have no idea
about. And once you recognize that it's
probably cognitive dissonance. It could could help you, you
know, whatever your actual understanding of Bitcoin will
be, or your actual eventual you know judgement about it.
But currently you know your critique is not informed.
You know, it's just. And those people, actually, they
don't bother me anymore. And I I don't, I don't get, I
don't have that feeling of like, oh, I got to help these people.
Bitcoin is helping them. They'll learn in time.
And actually just the existence of Bitcoin and the fact that
people are buying Bitcoin is making the no coiners lives
better. The fact that I don't own any
real estate, like Bitcoin didn't exist.
Like I would be buying rental properties.
I would be levering up that equity to go buy more rental
properties because that's how you accelerated your position
within the old paradigm, the old world, the A, a BB before
Bitcoin and now we're AB after Bitcoin.
And so you know when people are like, oh, you're gonna miss the
boat and like, oh, I'm just trying to save people.
Bitcoin is saving them. Bitcoin is making their lives
better. And Bitcoin is like, in some
sense the one of the greatest teachers.
This protocol, this protocol is teaching us so much about how
the world works through such a clear lens.
Yeah, so I don't get too into it anymore.
I used to really exert a lot of energy.
Like, I've had several ongoing long debates with people about
just all the things that we all kind of talk about when we're
attempting to orange peel people.
And the more and more I've thought about it and the more
and more I've thought about like is the government going to try
to seize the coins? We're going to have a 61O2.
Is like Bitcoin a threat. And the more and more I think
about it and not in some like delusional state.
I've just further developed a thesis that I cannot dispute
that Bitcoin makes everything better for everybody, including
the nation state, including the banking bloodlines, including
the No coiners. And I kind of am like letting go
of this. Like I don't know.
Like I don't. I'm not.
I don't have any fear around it. Like I don't think they're going
to come and try to steal our Bitcoin.
It doesn't make any sense. Like and I have.
I could go on and on and on about all the reasons why I I've
evolved my perspective there. Well, let's do that, because
this was one of the things I wanted to talk about.
So a lot of the things I wrote down is will Bitcoin be banned
or confiscated by government? So let's let's talk about that
you know banning first, adopting it and and then the game T right
there. So just, you know, as short or
long as you want. All right.
Well, First off, it is game theoretic, right.
And on a Mac, I believe that on a macro level, there's actually
more market competition. It's more tumultuous than
tumultuous than it is on a micro level.
On a micro level, if you and I are competing over a business
deal, we're not going to start shooting bombs at each other if
we get disagree. On a macro level, if you have
trade wars, trade wars evolve into real wars.
If if the if the trade war isn't solved right and so fair trade
is something that we want. The rest of the world is
obviously getting sick of the fact that the United States
prints dollars out of thin air and then sends them overseas.
And then these these other countries or marketplaces are
sending us real world goods and services and one of the another
thing that I really liked actually, Michael Saylor said in
Madeira. He goes, he goes, the
government's selling Bitcoin into the open market that was
seized. So the United States government
is very fragmented and they have all these different departments
and they don't interface and and work very well.
It's become this kind of inefficient.
I don't know. There's like this feedback loop
of more regs, more regulators, more fees.
And so it's very fragmented. And so you have some departments
where, hey, you know, there was law enforcement issues and the
government sees these coins and they're selling them into the
open market. And then there's a lot of
dialogue around the ETFs. The ETFs are going to bring in
all these coins. Coinbase is the custodian for
most of them. It's this huge honeypot.
Well, OK, let's think this through.
If the United States government says, hey, 6161 O 3, see, we've
got a new executive bill. We're going to confiscate all
these coins. Well, if they pulled them from
the ETFs and then they say, hey, you're a felon if you don't,
send us your coins. First off, like, I have friends
that legitimately lost the keys to their Bitcoin.
So what are you going to do? Go around and detain these
people and send them to a key extraction camp and just water
board them for perpetuity until they die because they can't even
give you the keys because they legitimately don't have them.
I know somebody who has a lot of Bitcoin that they bought really
early on and they can't find the keys and it's going to bug them
for the rest of their life unless they find the keys.
Wow. So that doesn't make any sense.
That's not energy efficient. But if they did seize the coins,
they say, hey to the 11 ETF's like, look, we got all of these
money issues, you need to give us all the Bitcoin.
Well, unless the government was going to use the Bitcoin as a
reserve to issue more dollars against, then it doesn't have
any value, right? So if you're going to seize the
Bitcoin and you can't spin the Bitcoin, then why are you going
to seize the Bitcoin anyways, right?
And so let's also layer on top of that.
You're talking about the government or the central bank
that? Have a use case you mean?
Yeah. Well, what's the point of it?
You're going to just take it all off the market.
And here's another thing I think most people don't think enough
about, and I think it'll be more of a commonly discussed idea or
notion, is Bitcoin makes Fiat better?
I believe that we're in for B locks.
All of these monetary units are getting lent into existence as
debt against assets, right? So they're printing money into
thin air. If I go to the bank and I say
here's 50,000 US shitty dollars, here's my down payment, I want
to buy this $500,000 house. The 450 grand that that they
lend me for the mortgage gets printed into thin air digitally.
It gets created, it gets created out of thin air at that time.
So, and it's also Jeff Booth's work like he's, you know,
talking about, you know, the we live in a deflationary world,
but the inflationary monetary system requires the dollar
denominated value of everything within the marketplace to go up.
Well, if they have this debt crisis that we all know they do,
it's 11th grade math. Like Greg Foss says, 11th grade
math. We know that they have to
continue to expand the monetary units within the system.
And it's happening at seemingly an exponential rate.
Well, the inflation goes into the marketplace in different
sectors within the marketplace at different rates, right.
And so if they continue to debase and lend that money into
existence as debt against equities in these large mega
corps and then real estate, the large mega corps become more
contilionary mega corps. It's more of a centralizing
force. And then the real estate creates
this feedback loop where the contillionaires continue to go
buy more real estate and the price of housing and rent is
going to go through the roof. Then the government has to step
in and put in rent controls. But if the bond, if the
inflation moves into Bitcoin, that's not hurting anybody.
If Bitcoin goes from 100 grand a coin to 10 million a coin over a
decade because they printed so much money, that doesn't hurt
anybody. But if rent over a five year
period goes up 5X people are going to be fucking homeless.
Landlords are going to go bankrupt because they can't pay
their mortgages because the the states or the the the federal
government's going to put in rent controls.
So the government, the landlord can't raise his rent, but his
cost of operating and his business is going up.
So I believe that what's going to take place is actually
they're going to roll out the orange carpet for us.
They are going to lend against Bitcoin.
Here's another thing actually too why would they seize the
Bitcoin if they can just print like if the government if the
central space? That's the whole point, right?
Then they if that's capitulation basically, right, they give in
to the kicker, of course. If this central bank says, hey,
you know what, we have AB lock available to everybody who has
Bitcoin in the ETF or in self custody.
You need to send the coins to us and we're going to loan you 10
percent, 30% whatever the LTV is, right?
The banks now get possession of the coins and then they mint new
US dollar into existence. And then people who own Bitcoin
can go be cotillionaires in the society.
They can borrow against the ever increasing equity that they have
in the Bitcoin and that fact that they're doing it isn't
contributing to homelessness. The fact that they're spending
more monetary units into the system is it's bolstering up
Fiat, but it's allowing a transition to take place where
the debt is now backed by Bitcoin and not assets, and
that's not hurting anybody. And then Bitcoiners who
typically are going to vote with their dollar for higher quality
things are going to now fund the ethical high value things within
the marketplace. And then the Bitcoin price rips
because the they're debasing against the Bitcoin instead of
housing and. So you say wait wait wait wait.
That's a summary. So you say we basically inflate
Bitcoin to prevent all the other stuff to be inflated.
Yes, and that doesn't hurt anybody, including people who
don't hold any Bitcoin. It doesn't hurt them.
It actually helps them because their rent doesn't go up 5X.
If Bitcoin shreds and rent doesn't and real estate doesn't,
then what's the problem? So this this does align with the
thesis of print more of your infinite money and buy Bitcoin
like to a degree but you. Yeah, but but this is different
version. This is different version right?
So. You say we printing and then
buying the Bitcoin and keeping the Bitcoin they're printing and
they're giving those monetary units to bitcoiners within the
free market who get to then use. For example, let's say you have
a handful of coins and Bitcoin hits A1M, right?
Like so. Samson Mao was right.
That's. 1.00 M. Yeah, yeah.
Well, no, let's just say it's it's one M per coin.
It's 18 months from now and let's say you have 5 coins.
So if you give one coin to JP Morgan Chase and Jamie Diamond.
Diamond, I promise you knows how to pronounce Satoshi's name.
And I promise you he's read the white paper a million fucking
times. The CEO of JP Morgan Chase.
So 18 months from now, you got $1,000,000 coin.
Let's say you own a couple of them, one of them, even.
Whatever you give that coin to JP Morgan Chase, you send them
the coin. And then now you get to borrow
20% LTV. You get to borrow $200,000
against that coin. If that coin is appreciating
that 20% a year annually, you accrue $200,000 in equity every
year and you can borrow a percentage of that newfound
$200,000 in equity. And you could go spend that
money into the marketplace. Being a bitcoiner, typically we
have a much longer time preference, a time horizon.
We think more long term we want to buy things that are more
quality. We're not typically buying the
cheap shitty widget made in China.
We're typically not buying beef that's grazed in what used to be
old rainforest that's been cut down and by cows fed glyphosate
laden roundup laden corn, right. We're buying local grass fed
beef, we're buying all this nice stuff, so that's good for the
marketplace. If we're voting for the dollars
and we're borrowing against the Bitcoin, it creates a new
contillionaire class. But here's the real kicker.
JP Morgan Chase now has possession of your coin and
unless you pay back that 200 grand that you borrowed against
the $1 million Bitcoin, they hold the coin.
And so in some sense like that gives you them the ability, I
mean literally gives them the ability to get possession of
coins. And it also gives freedom within
the existing system to people who have coins and the fact that
that the basement is taking place and the debt is getting
lent against Bitcoin, which is. Invisible.
I've referred to it as metaphysical.
It's property, it's matter and cyberspace.
It's like the merging of the physical and the metaphysical
world. It's been.
It's this invisible substance that is finite.
And if you debase against that, the fact that people are
hoarding it and you're debasing against it isn't hurting people
within the physical world. And it's like, once again, I
love so much of Jeff Booth's Booth's work, where you have
abundance and money, you create scarcity and everything else.
People short the money and they go long cars and houses and
whatever, right? Look at Venezuela or Zimbabwe.
I was watching a documentary last night, dude.
People were literally, they're changing their wages by the end
of the day. You don't even put prices on
menus because by the end of the day the price has changed,
right. And so it means that you got to,
you got to have anything that holds the value better than the
money or where you have scarcity and money, you create abundance
and everything else. I'd rather have Bitcoin than
anything else within the marketplace.
And if I wanted to, I don't know.
Let's also let's get real. Like most people are tired, the
road to serfdom is working exponentially harder for a
currency growing exponentially weaker.
You know how many people would be like yo, I'll give up a
fraction of my Bitcoin to borrow a little bit of shitty USD, so I
can go into the marketplace and buy what I need and get to relax
a little bit. And so then the central banks
get the coins, and then they can lend against the coins.
They can fractionally reserve, you know, against coins that
it's bringing solvency back into an insolvent system.
It changes the incentives, with the account changes, accounting
practices changing at the end of the year.
Nestle, as an example, is going to stack sacks instead of go
drill a well in some area where people are starving and thirsty
and broke and sell the water back to them.
We live in a world of you want to exert the least amount of
energy to get the most in return.
And the reason that people behave, the corporations behave
the way that they would do, the reason BlackRock has the
financial strategy that it has is just because of the Fiat
system, not because BlackRock is full of some sociopath.
Maybe they are, I don't know. But it's not because these guys
are scumbags per SE who get their jollies off on plunder.
It's because it's just how you got the most.
Like we all have a friend who's got an uncle who owns 30
rentals. When you sit down with them at
the BBQ, do you sit there and tell him he's a shit bag because
he's contributing to homelessness?
No, but we all shit on Larry Fink because they buying up all
the single family homes. Oh I you know I get that it's
unethical. Second and third order effects
aren't that aren't good. But now to acquire the most, it
also it's the least energy to exert as well.
It's like you just stack the SAS and so yeah, it's better for
BlackRock if you and I have coins in self custody.
It's better for the United States government if I have
coins and self. It's better for the EU if you
have Bitcoin in self custody and I think that people are figuring
this out at hyper rate. It's just the vortex of
incentives that the banks, the central banking bloodlines, they
can acquire coins because they currently control the financial
system and why would they try to confiscate the coins when they
could just lend Fiat against it and they would get a decent
percentage of it. And I do also have experience
with regulators trying to come in and regulate an existing
multi billion dollar industry with cannabis.
And so I kind of think it's laughable listening to some of
the narrative with the United States government trying to come
in with these ridiculous rules with Bitcoin.
They're it's not going to work. They're going to go back to the
drawing board and they're going to come back with favorable
rules. Like, rationally I I agree.
But I do wonder like this this problem is so big and the system
is so fragile. Like, definitely not sound
resilient. Oh, I love, I love those words.
So I could also imagine that the narrative for the opposite of
what you are saying, you know, this is obviously such a threat
to this already fragile system, so we should outright ban it.
Like, I don't think that's a good choice.
But I like, at one point it's going to become clear for
hopefully everyone who can do something about it, like inside
of the government that did it, this this is really like a
braking system, right? It's not I don't right.
Bitcoin's a solution? I understand, I understand.
But I mean more just to draft. Just to steal man thesis.
Yeah, just to draft the resolution and say like, OK,
like if everyone is going to, you know, switch their USD for
Bitcoin, then we have a problem. And you already see that a bit,
of course, right? Like they're closing the doors
in different countries. Actually, you know certain banks
don't allow you to buy stuff on Coinbase for example.
You cannot even take money in most countries out of your
retirement account just because it's not there, right?
And so like, although I agree with you, I do wonder like if if
someone like let's say Elizabeth Warren with her, well, I hope
she gets replaced. But anyway, you know, with a
shitty resolution, get some sponsors that that she can get
that through. Like it it, it, it would be a
dumb decision, but it wouldn't surprise me, right?
Because not not everyone, even in a government actually
understands, you know, that the field system, especially in
America, I think we all look to America.
So we take that as an example because it's the best currency.
But this is the shape that it's in, you know, so if America, if
America's field system falls, then the rest will follow
anyway. So it's more like, OK, I love
the rational thought, but I wonder, I wonder if relevant
people realize that in time, you know, and then I do agree it
could be a life boat basically to keep the Fiat system from
actually breaking down. And then you kind of like buy
time without hyper inflating actual things that actual people
use, like the foods, you know, because obviously that will lead
to civil unrest and you know, even worse outcomes, right.
So yeah, and I love that Bitcoin is so ironical in a sense,
right? That it it if this plays out
like you say and it would be a lifeboat for a Fiat government
and that is like pure poetry. That is just amazing.
Yeah, I think there's going to be a lot of fun and distraction,
though, and I do think that they're going to try to keep
people out of it. And I, you know what comes to
mind when you say, hey, you know, like, yeah, they're
preventing people from moving all their money out of their
retirement accounts and into Bitcoin, and some jurisdictions
are preventing people, some banks are preventing you from
buying on Coinbase and so on. That makes logical sense to me.
But that means to me that these people who have that benefit and
have control over the current system, if you will.
Yeah, they want to slow that down and they want to get a
position, but like, let's all get real.
This is like a this is a game of musical chairs, or everybody's
rushing into this new system and it is a survival of the fittest
Darwinian type thing that is taking place.
But it's still making things better for people who are in the
Fiat world and stuck in the Fiat world.
Is it not fair? And that that they can't just
easily sell down their retirement account and put all
their money into Bitcoin, of course.
Sure. That's definitely, like, not
fair. But Bitcoin is slowly bringing
truth. It's slow.
I actually, I would say it's happening quite fast.
It's bringing truth, It's bringing fairness.
It's bringing solvency into an insolvent unfair system full of
lies and so it is making it better every day and for
everybody. No coiners and coiners.
And so I just think that over time the OR the end destination
is not a 61O2. It's not camps eating bugs.
But I also believe that we are being there is a mass IOP taking
place. This is, this is my conspiracy
belief. You could say if I was the
United States government, or if I was a banking bloodline, or if
I'm the Federal Reserve personified, what would I do?
I'd tell Gary G to shut his fucking mouth and not tell the
world that he's going to sue every unregistered security that
exists. And I would let the plebs get
wrecked buying dog coins in Solana and Ethereum and whatever
other garbage, right? It's the only way to dilute
Bitcoin. And then me.
In the meantime, I let all my trust and all my institutions
and the ETFs and then the big large corporations stack like a
motherfucker. And then once again I this ties
into, like, Samson Mao's Omega Candle thesis.
I think he's right. Like, I don't talk about the
price of my videos. Really, I don't.
I think it's maybe the most, it's the most important but kind
of the least fascinating thing about Bitcoin.
It goes in line with the it's the the worst way the best thing
could happen, right? And instead of Bitcoin
liberating 5 billion people from poverty over a 20 year period, I
think that the price is going to blast through the roof.
A bunch of plebs got wrecked buying dog coins and then the
mainstream media and the government's going to continue
to lie and gaslight everybody and they're going to tell them
when it crashes from 2.5 million to 1.8 million.
It's too volatile for you plebs. You don't want to hear this
anyways. In the meantime, all the Ballers
are just stacking hard. And so I do think that we're in
for some really interesting stuff taking place in the
future. But also, and maybe I'm grading
on a curve, maybe the old world, maybe the world BB before
Bitcoin was so bad that I'm looking at how Bitcoin is making
things better and I'm grading and I'm just grading on a curve.
I'm like, you know what, it's still making it better for
everybody. But actually, once again, it's
just it's steps in the right direction.
I think that humanity in our civilization is moving in the
right direction in such an interesting and beautiful way
because of this incentive vortex.
And it's like, you know once again too.
Like Matt Crowder with Bitcoin University.
I love his videos. I watch all his videos, shout
out to Matt Crowder. He did a video the other day
about like is BlackRock and a fork Bitcoin.
Oh funny. Wait, wait.
Wait to add to add to that. This is also one of the things
that I saw and wanted to talk about.
You know, someone said, you know all these financial institutions
that are buying Bitcoin. You know they're going to rogue
us and sell it at a certain point where I think like you're
obviously misinformed because it's the the people who buy the
ETFs, right? Anyway, let's tie it into this
like. Yes, yes.
What are those? Big bad.
Institutions are going to do. So we're talking about a global,
a global protocol. OK, that is significant amount
of the coins are distributed throughout the entire world.
So you can't ban Bitcoin, you can only ban yourself from
Bitcoin. Look at what China did.
China tried to ban all the miners.
Probably a fucking mistake for China.
Honestly we all know that. And so if the government dumped
all their or if the ETF, let's use BlackRock as an example.
If the if BlackRock tries to fork it or dumps all the coins
they got what what is BlackRock alone has 210,000 I believe
someone I was chatting with Latin last night said 4 to 5%.
I could be wrong, but let's just say hypothetically it is 5% of
the coins are held by the 10 ETFs. 10 or 11 I think GBTC.
I think it's now almost 900 K or something ish.
I don't know. I cannot get that so.
It's it's a it's a significance. Just call it 5% for if all of
those bands together and dumped all those coins under the
market. People all over the world,
Michael. Sailors of the world, Flebs like
you and I, we're just going to buy are you kidding me?
And only hurts them. And so that's I believe.
I believe that idea is a silly, silly thought process if you
look at it through this lens. Black Rock.
It's the cognitive dissonance again, right?
Like. Well, let's look at Larry Fink.
Larry Fink is literally the most successful asset manager on
planet Earth. He's and I don't know anything
about this guy other than he's got he's the head of BlackRock,
right? He may be unethical in his ways.
I fucking I don't know. He could hang out with Epstein
in the past. I don't fucking know.
Let's put all that aside. Let's just look at his business.
He is a winner. He is the most successful.
He manages the most successful fund.
Not because he does dumb shit like dump all their Bitcoin to
crash the price, because he does the right thing to make the most
money and so selling all the coins for a bunch of shitty USD,
what's he going to do? Just buy up the rest of the
houses in the country like it doesn't?
It just doesn't make any sense the way to.
Get because they understand. They understand what this is
100%, obviously. For sure, but also I I think
someone asked like what? What are they?
How do they convince their no coiner friends?
Or like, how do they deal with the fact that they're trying?
Someone asked when you you know a question for us in this
conversation. How to reach people outside of
their bubble? Yeah, So I think the reason
people don't understand it is for all of known history, the
path of least resistance. To get the most was plunder was
to lie, cheat and steal and kill right.
It's the game theory. The game theory and the
incentive was tilted to violence.
And so that that means that hard wired into our biology is for us
to not believe and not trust that there's an incorruptible
thing or protocol. And I love one of the things
that Breedlove says, that he's the first person I've heard
speak to this, and this was kind of back in a couple years ago.
And Bitcoin is essentially the discovery of incorruptibility.
It's it is it? It is.
It is hacked human greed for something that's good for
everybody. It aligns what's best for the
individual, for what's best for the collective.
And if you're a sociopath who doesn't give a fuck, who's
willing to glide, cheat still, and kill, you're even more
predisposed to do anything to to get the most.
And now it's buy SATS or mine the coins.
It's not try to attack the network or try to steal the
coins. It's a trillion times easier, I
think, Sailor says. It's total opposite to comply,
yeah. It's a trillion times easier for
my node to deny a false block than it is for a miner to mine a
false block, yes? So to attack the network takes
trillions of times more energy than it is to protect it.
I think that those numbers apply.
It's a trillion times harder to try to steal someone's coins
that are properly custodied. Then it would be to just try to
make a deal with them. Yeah, but I I think this is one
of the biggest things actually people should or could
understand about Bitcoin is the fact that this solves our
inherent corruptibility. That is part of what this
innovation is, right? If we allow ourselves to accept
that, even though when we look from afar to someone right, who
is a corruptible or corrupted person or how, what's her name?
Nancy Pelosi is a better traitor than you know, yeah, fucking
Buffett, right, that everyone would say, like, well, if I
would be in a position like this, I would never do that,
right? I would never do that because I
am a righteous person. Person right.
But what I think we should all accept is that if we would be in
that position and be part of a system that has that is
corrupted and we get the opportunity to be part of
corrupting it, most people would probably do it, even though now
from a distance we would say we would never do it right for
sure. Once you accept that, then you
accept that if we want to create a system for money or exchanging
value, right, it should be an incorruptible system, because if
it has openings to be corrupted, there will be people that will
corrupt it for you. I mean, we're living in it,
right? Totally.
And so, once you agree and actually integrate the fact that
yes, you also are a corruptible person.
Yep. And then when you understand
that Bitcoin is incorruptible, that there is more value in
following the rules than trying to play the rules as you just
mentioned. Significantly, yes, orders of
magnitude. But then your life gets easier
because it frees your mind. But also it is a paradigm shift
because in the system that we now live in, I think you just
mentioned it a moment moments back.
But it's so hard for people to understand because the system we
live in is a 00 sum game system. Like when you when someone else
wins you lose etc. And Bitcoin is not that.
Like Bitcoin is a mutually beneficial system.
If we I tweeted a few few weeks ago, I can remember, but it's
like you. I think it's like you agree to.
I have to look it up. But it's like you know that all
the other users in the system also know that other users in
the system will follow the rules basically right?
Like you comply with the rules because everyone who uses it
also complies with the rules. There is no way to not comply
with the rules and get value out of it.
You can only get value out of it out of it when you.
Hard if you go against. Exactly, yes.
Yeah. So if you would do like a 51%
attack that basically costs like, I don't know, 10s of
billions for 10 minutes, then what do you have?
What? That's this is what Jason Lowry
says, right Leah? Like, you can only get yourself
out of it instead of if you spent, let's say, 10 billion on
buying Bitcoin, you probably get more value than trying to attack
it or break it. So.
There's no there's no valid like business case basically for for
attacking it. It's only and and and also and
then let's move on to the next topic but it's also the action
versus the words right. Use like that is like the part
of the Bitcoin ethos as well like people can talk about it
like oh Bitcoin sucks, blah blah.
But we can now say, well if you are not short Bitcoin, you know
shut up basically, right. And like all the people that as
politicians who talk about banning it or blah blah blah,
well OK, try it. Like like the you only talk
about it without doing it because that is what works in
the Fiat world, right? Yeah, well, it's also
suppressing the prices, keeping a bunch of normies out because
they're scared they don't understand.
Also, yes, but, but that is a Fiat world tactic.
It works in the Fiat world, but in a Bitcoin world, you know,
it's like, OK, well, you cannot stop me from from acquiring it.
Try it, You know, like actually try it.
And then yeah. I think they will see that it
will be way more valuable if they would just follow it and
and that's also in a more global game theory type way tweeted
about this. But I think the first follower
of El Salvador will actually be a bigger winner than El Salvador
right. Because once, let's say Qatar,
Oman or UAE, whatever really comes out with, you know, we're
going to ask for Bitcoin in return for oil, dude.
Like everyone's going to buy and then they probably already have
a stack, right? So yeah, you know, I want to see
that. I want to see that.
Me too. Well, it's coming.
We all, we all know it's coming. It's just a matter of time.
I want to add to that before we switch to the next subject.
Well, two things actually. I popped up on my feed the other
day on Amazon is Jason Lowry's book sophomore.
So I think the software has hit the shelves again.
And so that ties into something. Though Bitcoin is not a threat
to the United States government, it's not a threat to Russia.
It's not a threat to Great Britain or any European
countries, the European Union or anything.
It's a solution. Governments don't want to be
bombed, killed and stolen from just like you and I don't want
to be debased and stolen from. Black Rock doesn't want to be
debased and stolen from. Nobody wants to be debased and
stolen from. This is a monumental solution
for everybody. I think that we have a lot of
distraction there's you could say it's a mass psyop taking
place because there's only one way to slow this down and that's
to create some fun. So.
Anyways, I agree. All right, so the price went
down. What do we do?
Celebrate. Be happy.
Are you kidding me dude? Can you Craigslist an old shitty
iPhone for 50 fucking shitty U.S. dollars and stack a few
stats Like, Jesus yes dude, I love it when it's posted.
It's flying around Twitter over the last like couple of days
Like some of the some of the hard the hardcore maximalists
that are talking shit are just like, hey, is everybody OK?
Are you all right? And I can only imagine the
mainstream narrative like, uh oh, Bitcoin crashed from 74
grand to 66. You don't want any part of this.
This is this is terrible. Everybody go ahead, get out of
it. Bitcoin's dead.
Dareth is shorting it again.
He's like, yes, I was right. Yeah, I was right.
And more shorts. Gosh, dude.
Wrecked. Oh my goodness dude.
Yeah, it's I I I added this to talk about because as I
mentioned like on LinkedIn I saw this post of like financial
planners. I help you to get to financial
freedom in two hours, blah, blah.
And they were like, yeah, look at this, It's not a store of
value. It's like, how can this be a
real thing? Actually, some guy replied to
me, he said if it's so hard to understand, how can it be
globally adopted? I'm like, bro, what?
Sorry, but it's not. So it's like these people come
out when the price goes down, you know, like when the price
goes up, like all these traditional people say, like, oh
look, it's a Ponzi, It's a pyramid scheme.
It's a Tulip bubble. When it goes down, they're like,
yeah, see told you so. And I think like, but it's yeah,
this is, don't you? Think dictated in that moment.
But don't you think this is such a boring life?
Like what? A boring life?
This. Complaining.
This. This.
It's like the CEO.
Did you watch the interview of the CEO of Vanguard before he
announced he's going to be stepping down?
Yeah, I think that was old by the way people tweeted about it,
but it was. Was it old?
Anyway, but yes, how we talked about it, It's just like, dude,
are you using the cash flow argument Seriously?
Are you using stocks? Like Bitcoin is speculative
asset, but stocks are not. Dude, you're speculating on the
fact that Elon wakes up in the morning and it's not dead right?
Tim Cook? Same.
Smoke a blunt on Joe Rogan, dude.
Oh yeah, he can. Well, now blunt you can.
All of a suddenly wrecked. Apparently, yeah, yeah.
Well apparently Elon is on some ketamine therapy or something,
so I I read that today. But the the simplistic assets or
simplistic arguments from someone who leads a 1.7 or 3
trillion whatever asset manager like, I I my ego comes into play
and I think like am I smarter than this dude?
Like probably not. But like well hey, well like
what is going on here? You know he's trying to protect
which I understand, but the the like the the segment or the
public that he's protecting this for by using these arguments.
I wonder how big that is because the Internet is huge and all the
information is free, right. So if someone says, oh, Bitcoin
is bad and you're even remotely interested in what happens with
your money at Vanguard, you will Google, how does Bitcoin work
right. So it's just it's a weird, It's
a weird. Bias, I think.
I think that his success has been predicated upon a strategy
that has worked BB before Bitcoin that works like that's
that's the Warren Buffett playbook.
Yeah, it's the Warren Buffett playbook.
That's cool. Go back to 1960 and then start
running your fund and you're cool until today.
And now the strategy has changed, as in the famous words
of Giga Chad himself, all your models are destroyed.
There is no second best. Yeah.
We're going to see when they also capitulate and start
offering a Bitcoin stuff, all right?
Or they're going to go out of business, dude, come on.
That'll be wild. Yeah.
All right, Why do people stay stuck in clown worlds?
And can how can we help them, if any?
Okay, I got. I got a thought on that one.
So as opposed for me at least, this is just my humble opinion
and my my experience in my life as opposed to spending the
effort because honestly, we live in a world where you're
channeling energy, right? It's energy in, energy out.
And so let's be laser focus, let's be energy efficient, let's
not squander our life force doing things that don't produce
effective yield or change within the world, right.
And so I have found that instead of exerting all the energy to
try to come up with all the great zingers and ideas and
things to explain to somebody why Bitcoin is so fantastic, I
really distill that down to the most basics.
Hey, this is the only thing on planet Earth that is the demand
goes up, the supply doesn't change chat, and it's a money
which has infinite demand because money is a call option
on any other good or service that the marketplace produces.
So everybody on planet Earth wants whatever the agreed upon
money is within the marketplace. And so this thing is basically
pairing infinite demand with true scarcity.
That and it's metaphysical or it's invisible or it's in
cyberspace. It solves the double spin
problem so nobody can kill you and steal it and that's a big
deal. And so you could think about
that or not. But also then I just lead by
example. Like this thing is making my
life so much better if you if you and and it's just just by
being optimistic and positive and like I don't ever tell
someone have fun staying poor because that's a big royal turn
off. I don't get into debates over
the Democrats versus the Republicans and the fucking, the
the transgenders versus the you know, heterosexual.
I don't get into any of that stuff.
It's just all crazy clown world. And once again let's look at
what Jeff Booth does. This guy is pure motherfucking
bliss. Dude.
I love Jeff Booth. His energy is so inspiring and
he just, he says anything that you do to yell at the old world
just strengthens it. Energy goes where it energy
flows, where attention goes, gosh, I can never, I don't know
why I can't ever say that. I say it all the time too.
So you're just channeling energy into the clown world if you yell
at it. And like, if you're trying to
inspire people, family members, friends, loved ones, whatever.
First off, let's just think about this.
They're not missing out, they're just missing out to buy it at
this price. They're missing out on 100 XA
thousand X whatever. But as long as Bitcoin exists,
it's going to appreciate at a faster rate on average than
everything else, probabilistically speaking,
within the marketplace. So it's always forever the
monetary investment. There is no second best.
You buy it forever. It doesn't matter.
The price. You go to the marketplace, you
earn a surplus, you sweep it into Bitcoin.
The sooner people do that, the better off they are.
However, and this is where it is kind of Darwinian, if you're
hubris because you're a concilionaire who has a multi
$1,000,000 stock portfolio and you have 13 properties and you
got a net worth of $8 million and you think this is too good
to be true, you get turned on. When you hear the CEO of
Vanguard validate your broken thesis and you continue to move
forward in your life, you're going to feel the economic pain.
But that person is also not going to go live on the streets,
right? Like they'll be OK.
Their net worth is going to go down relative to the net worth
of bitcoiners. But also the no coiners who are
working 9:00 to 5:00 jobs that they're struggling with, and
they're having their life is getting perpetually harder,
denominated in dollars, measured through the lens of the old
system, measured within the old system.
Their lives are getting better in the old system as the result
of the existence of the new system.
Because as an example, I sold my house my 10.
I had 10 acres with a house and I had 7 acres raw.
Then it ended up having multiple greenhouses on it.
It was a licensed cannabis farm when I sold my properties at the
end of 2018. After owning these two parcels
for two years, I have now put all of my money into Bitcoin.
I don't own a rental property. I don't even own the house that
I live in. I rent it that infinitesimally
is downward price pressure on housing, making housing more
affordable in a very almost borderline and measurable way.
But it is downward price pressure on houses, so people's
lives are getting better. So I lead by example.
I try to be cheerful and constructive.
Let's look at Sailors 10 rules for life.
Be laser focused. Don't dilute your energy.
Be cheerful and constructive and so I don't get all worked up and
angry and tell people, hey you fucking moron, have fun staying
poor. I don't yell at the clown world.
I defund it with my focus, my energy and my monetary units.
I put them into Bitcoin. And then what happens too is, is
that your credibility increases overtime as bitcoins value goes
up. So you'll find that when
bitcoins 10 grand and you're telling people, hey, I'm buying
Bitcoin, you should think about it.
And they're like, Nah, it's OK. I'm not interested.
It's a Ponzi scheme. Well, then when it's 100 grand,
they're a little more open to what you're saying.
And then it's going to be a fucking $1,000,000.
They're going to be like, Dang, this guy was right, or they're
just going to live their whole life in cognitive dissonance and
disbelief. But there's but their lives are
still getting better as a result of the fact that people who do
understand are stacking sads. And so, yeah, I just, you know,
cheerful and constructive, lead by example, figure out how to
distill your sales pitch down to the most fundamental, most
important first principles. Things describe the forces we
live in a deflationary world. Supply is always meeting demand
as we make things more abundant with the aid of technology.
And in the inventant. Invention of a net is
technological advancement over the guy who was fishing with a
spear or a pole. So you'll never stifle people's
desire to enhance technologic, technological advancement within
our society. As we make things more abundant,
we're driving prices down. The larger the margin, the
larger the economic incentive. Typically the bigger the
problem, the more entrepreneurs and capital flow into that
sector. They up the supply relative to
the demand associating that demand driving its price down.
And you can't benefit from those deflationary forces unless you
have a fixed unit. If you have an inflationary
monetary system, you have a moving target.
What you want is going further away.
Another thing I tell people too is like, yo, this house that you
used to want what you want, this house, it's a million.
Two, it's a million one, it's 600 grand, 500 grand, whatever
the price is. Yeah, you realize that like 3-4
five years ago that that house was 100 Bitcoin, 120 Bitcoin, 65
Bitcoin. Well, right now it's 15, it's
20, it's whatever. So measure the value of the
things that you want in Bitcoin and just lead by example.
You know, nobody wants to be talk shit to, nobody wants to be
berated, nobody wants to be told they're dumb, nobody wants to be
told to have fun staying poor, that just puts up fucking
cognitive walls and blinders and just it further strengthens the
the divide, the divide and conquer strategy.
That's what the sociopathic overlords that they want.
They want us out of each other's necks.
Another thing I heard sailors say, you know the way to win a
war is is to make other people die for their 'cause.
You know, you know. So if you have people fighting
against each other all day long, it's a way to to perpetuate the
FUD, keep the price down so that the people who get it can stack.
Which is still though making it's the 2nd and 3rd order, 4th
order effects of the existence of Bitcoin is still enhancing
people's lives even if they don't own it.
And so why is Bitcoin a solution for everyone then?
I heard you say that and I loved it.
But how? How is Bitcoin for everyone?
Literally everyone. Literally everyone.
Uh, well, I mean it kind of ties into what I was just saying as.
So I think about like a good metaphor that I like is let's
think, let's let's think. We're squirrels.
We're squirrels going through the proverbial forests of life
trying to gather nuts to survive the winter, trying to hedge
ourselves against the future uncertainty or the future
certainty of being able to not perform at the same level in
which you someday you're going to be able, you're going to get
old and you're not going to be able to climb around the trees
as effectively and gather your nuts, right.
You're not going to be able to work as much.
You're not going to go into the marketplace and be as productive
as you are today, for example. And so if within the physical
world, if you're the proverbial metaphorical squirrel and you're
gathering nuts, and you're really good at it, and you
gather all the nuts, there are other squirrels now that don't
have access to nuts and they're going to starve and not make it
through the winter. And you can say that that's
Darwinian and fair enough whatever, that you can say that
that's just the way the world works.
And BB, before Bitcoin, that was the way the world works.
But now that we have discovered matter within cyberspace or this
finite instrument, this metaphysical property, that's
invisible, but it's finite, and we could send this informational
piece of the hardest substance in the known universe, I send it
from me to you, I no longer have it.
And now you have it. And it's invisible.
It's in the land beyond. It's at this invisible thing.
If if we hoard this, it's strengthening everybody else's
Bitcoin and it's not unethical. And so you'll never be able to
tell the squirrel that's really good at gathering nuts ethically
or unethically. He just goes and pricks another
squirrel with a little squirrel sword.
Hey, you are taking all your nuts.
OK, well, that's pretty shitty. But you know, let's say that's
just how it is. You'll never stop somebody from
being like, OK, so I got 1 winter's worth of acorns.
I'm just going to stop now. No, because you want to
continue. If you're productive, continue
to stack and stack and stack. Maybe you would just want to
work for three seasons and save up enough acorns to live the
rest of your life. Well, if you do that in the
physical world, you're hoarding things other people need,
putting more scarcity on those things.
And so for example, housing is where people have stored most of
their value. Real estate, you know,
everybody's all, they're not making any more of it.
Well, they're continuing to subdivide.
And you look at how much available acreage there is on
planet Earth, it's pretty fucking abundant.
It's actually probably as abundant as oxygen is, right.
And so really the fact that we have monetized it at the level
we have as a result of a broken monetary paradigm.
And so hoarding the Bitcoin is not unethical.
It's not bad for anybody. It's actually good for
everybody, including people who don't own coins today.
And someday they will, you know, and if they don't, it's OK
because everything is still being demonetized as a result of
the existence of Bitcoin. And so I do believe Bitcoin is
good for everybody, including the no pointers.
It's good for the government. It's good for.
It's good for the pleb, the small business, the, you know,
the baller that's got a couple houses and lives in a $40
million flat in Miami. It's good for the small
corporations, the large corporations, the small nation
states, the large nation states. It's good for the banking
bloodlines. It's good for fucking everybody.
It's a solution for everybody because everybody has the same
game theoretic issue. We don't want to be debased.
We don't want to be stolen from. We don't want to be, you know,
Yeah. So I think bitcoins good for
everybody. I do.
All right. So Bitcoin regulations, you have
a lot of experience with, you know, within your cannabis
career, with regulations. How do you think, if any, the
government will try to come in and regulate or, you know, ask
for more? Like Elizabeth Warren's proposal
was actually pretty dumb, I might say.
I saw, I don't know her name, but on Twitter I saw a rebuttal
of this woman that's a video, don't know her name, but she
went to all the sponsors of Elizabeth Warren's bill or
proposal and explained to them that there are already
regulations for all the platforms, the crypto platforms
in America. And they were all shocked
because they didn't know. So Warren duped them into
sponsoring her basically. But yeah, what are your thoughts
there? Regulations.
So I'll give you a little back story.
In the state of California in 1996, Prop 215 was passed, which
was medical marijuana. And the rules essentially said
if you were a qualified patient member of a collective of other
qualified patient members, you could share cannabis within that
collective. Well that means that somebody
had to produce it, OK. As a result of Prop 215 what
ended up happening is, is this multi $1,000,000 mega industry
developed and in 2015 the Governor Jerry Brown at the time
signed into effect a new bill called MERSA Medical Marijuana
Safety Regulations Act. And what MERSA was, was the
regulatory, the most basic regulatory framework put into
effect preemptively knowing that the probability in 2016 when the
people voted, I think it was 2016.
It went into effect in 2018 that the people of California were
going to pass recreational, adult use cannabis.
They were going to quote UN quote, fully legalize it and the
state was going to fully permit and license it and MRSA.
What a MRSA essentially said was this is in your county, your
jurisdiction within the state of California, the county officials
could either permit or ban any cannabis activity.
So that's going to be cultivation, manufacturing,
distribution and retail. And so some county said we don't
want any of that and they actually kind of suffered
economically as a result of that.
That's beside the point. But most counties put into
effect a land use ordinance. So this farm for example here
that I'm in now is permitted by the county and it received the
permit by from Humboldt County before it received a license
from the State of California. And the permit issued by the
county was via their land use ordinance and it has to do with
Setbacks, Endangered Species. There can't be any spotted owl
on the property inhabited in any of the trees.
There can't be any endangered grasslands or wetlands or any
sensitive that you can't be too close to a Creek.
I can't have a school too close, no bus.
It's kind of like a a liquor license.
You can't just throw a bar up right next door to an elementary
school or right next to a high school, right?
And so the county permits the facility and then the entity
that has owns the land and owns the permit that's attached to
the land gets to apply to the state for a license from the
state of California. And then they can lawfully
operate within the new legal framework.
So when MRSA was signed into effect, Humboldt County hit the
ground hard with a land use ordinance.
So did a lot of other counties. Humboldt County was the 1st at
the time. In Humboldt County there was
12,600 and some odd farms. Farms that were visible via
Google Maps. Not special satellites, not DEA
drones, not helicopters with men hanging from them, counting the
facilities. These are farms that are
determined to be of commercial scale via Google imagery.
OK, 12,600 farms, Humboldt County says.
Here's our land use ordinance and the state of California.
Also, their regulations were essentially incentivizing
through the carrot and the stick.
If you come come into compliance and regular and register your
cannabis business and you could prove you're within good
standing under the 215 framework in our current existing
nonprofit laws, then you're going to get priority for
licensure. You will have.
You will be in the fast lane to get a license from the state of
California, and we're also going to stop large corporations from
coming in for a period of time. We're going to give you this,
this grace period in this land of opportunity.
They put into effect the deadline to register your farm.
Out of 12,600 some odd farms, 123 farms registered under the
first initial, I don't know, regulatory framework that was
offered to the marketplace. The cannabis community at large
gave the proverbial middle finger to the regulators.
And these are people who want to run their farms.
They didn't want to. Oh yeah, we just want to live
this rebel, outlaw life. You could get fucked work.
No, like, these are people who are.
These are families. These are everyday hard working
individuals who are associated in the market demand doing
something that they believe 123 out of 12,600 people farms
registered within the state of California or within the county.
That's just Humboldt County. You know what the regulators
did? Instead of sending law
enforcement around to farms that you and I could take a tour of
right now on Google Maps, I can show you these places.
Like, here's the land, here's the parcels, instead of sending
law enforcement around to punish all these people because it's
not very energy efficient. But this is also not a huge land
mass. This isn't the whole country.
This isn't the whole state's humble county.
Instead of sending SU VS and sheriffs and helicopters around,
they went back to the drawing board and they came back with
much more favorable terms. And so when I look at the lens
and I look at the proposed regulations in an attempt to
regulate Bitcoin and Bitcoin mining and self custody by
people like Elizabeth Warren, I think they're absolute fools who
have no idea what they're doing. They you're talking about
something that is trillions of times hard, easier to protect
than it is to attack, right? So you can't even prove if
someone actually has the Bitcoin that they've been sending in
cold storage with a different address every time, let alone
find their Bitcoin via Google Maps and drive an SUV right up
to the private keys. So yeah, I understand why there
are regulators who are asking for everything.
They did it in the state of California, actually.
Then they came in and they overtaxed it and they had to
drop the taxes. Land use or like Humble County
used to charge a square foot tax for every square foot You know
you had to pay a one dollar, $2.00 or $3 defend depending on
what you're cultivating. Outdoor mix, lighter indoor.
They dropped the taxes. Farms are going out of business.
The regulators aren't collecting any money.
They keep coming back with more favorable terms because what
they wanted was motherfucking preposterous, dude.
And it's even more preposterous to think that they're going to
ban self cost. How do you even do that?
How charge 30% electrical tax to the miners dude you know the
United Texas is going to be up in arms.
You know how much money Texas is making right now from Bitcoin
mine. It's just crazy.
I understand it's you could say it's a legitimate concern
because these regulators are proposing things that are bad
for the industry. I don't get too worried about it
because I watched the the government come in and try to
regulate an existing multi billion dollar industry with
with very prohibitive excessive rules and regulations.
And they went back to the drawing board with the tail
between their legs and they came back and they were much more
reasonable. And we had way like orders of
magnitude less leverage than bitcoiners do so.
I think that's a really good point.
Yeah. So I'm not saying, you know,
like I think it's a valid strategy for them.
I'm just saying, like, I wouldn't be surprised if they
would be able to sneak something in That's more the point, right?
Because it's so opaque, you know, it's less clear than, you
know, a cannabis farm that produces this, this amount and
distributes and blah, blah, blah, blah.
You know, like because no one understands Bitcoin in the
government, most people don't. You know, it would be easy to
create some sort of opaque text that could get sneaked in.
That's more the point. But I agree with you.
I think the. But it would get lost out fast
exactly. Because you see the replies
already. The United States government
would experience some serious pain and once again it puts us
at a game theoretic A disadvantage against other
competing marketplaces. And so I just don't even know if
it if something would get slipped in, and if it did, I
think the rate in which it would get changed is very quick.
That and if you understand Bitcoin then you could almost be
grateful all Elizabeth Warren came up with some stupid bill,
the price plummeted, and then I got to trade my old shitty pick
up to a savage who's got some coins and I got cheaper fucking
coins, right. It's so.
You can't ban Bitcoin. You can only ban yourself from
it and it would just the economic pain that would take
place. It's like BlackRock though.
BlackRock is getting paid to manage people's Bitcoin in their
ETF account. So the economic incentive is to
support and go along with the the network, not to go against
it. And I just think that I used to
be more concerned about this. And I've just literally, I
almost think about how what kind of am I in jeopardy as a result
of being a Bitcoin maximalist and have it all, literally all
of my money is in Bitcoin. So I have a huge incentive to
think about this a lot. And I could be wrong.
I'm just a dude. It's just my thesis.
What the fuck do I know? But the more and more and more I
think about it and the more and more I play out, every
potential. You know, there's like a chess
tour. You're just thinking about every
potential move ever. All roads lead to Bitcoin.
I can't think of a of a timeline in which Bitcoin doesn't make
everything better for everybody. Yeah, yeah.
And to end this part, we generously invite anyone who
wants to discuss us on that right to to talk with us, Right.
I think I would love to hear. You know, I think it's what
Saylor says. There are no informed critiques,
and it sounds so arrogant, but I haven't seen any critiques that
actually hold up under scrutiny, right?
So I. Yeah.
I would love, I would love to see it and I agree with you like
because you are literally invested.
I mean I'm in a similar situation.
Yeah. This is what we study just for
self preservation first. Totally.
And and we share it I think enthusiastically with others to
hopefully get them on the same understanding.
But but that's the whole point again, I think in Bitcoin
anyway. Like you don't have to trust us.
You should trust that we did the work and that's should could be
the invitation for anyone seeing or listening to this like to do
the same right. If you think you you you have
critiques of this. OK.
Well, that's a nice leeway, I think, to the next nice segue to
the next part. More thing in on that one now
I'm a little, you could say I'm a little extreme, but I'm
actually quite conservative. I'm quite conservative and I'm
not a huge risk taker. And I also look at my my Bitcoin
position, or allocation is predicated upon the idea that no
matter how I slice it and dice it, I don't think Bitcoin goes
away. It either goes to Infinity or to
0. If it goes to 0 or it gets
destroyed, we're in trouble anyways.
And I'm a motherfucking revolutionary.
I'm going to ride this bitch to the fucking end, dude.
And I'll take it to 0 or I'll take it to Infinity because if
it goes to zero, we're all toast anyways.
And the most effective way to combat the atrocities that are
taking place in the world, Like, I see homeless people in the
local area. When I go, dude, it just wrecks
me. Seeing dogs and animals on
social media, getting abused, seeing people get blown up and
destroyed tears me up inside. It's such a deep soul level I
can barely handle it. I'm such a softy.
Like once a week, I literally burst out in fucking tears
because I know how effective Bitcoin is at combating all of
this. And so I have an extreme
position you could say, based upon.
I'm so passionate about effecting change.
But I also think this is what's so beautiful.
This is where what's best for the individual is what's best
for the collective, and you get paid to do the most moral,
righteous thing ever. And that's the stack Sats.
So anyways. Again, this is something I think
for lots of people that are not that into Bitcoin yet or not,
it's just so hard to understand because they grow up.
And we also grew up in this system where that stuff actually
exists, right? And everyone says, oh, it
should, it should not exist, right.
Everyone and you know, protests against certain violence or
whatever, but it is about the money.
All the things are downstream from the broken money, right?
So we can still feel that we want to change something, but
yeah, we have to do this. We have to move from this old
system basically, right. And yeah, so I love it when you
say this like I I agree so much. I am the same risk averse
control freak. Person.
And I moved all the way into Bitcoin, like it is the best
thing to do for yourself but also for other people.
And got like every time I say that, I think like, oh, that
sounds so pretentious and you know, but yeah, I don't know.
I'm not going to apologize that my mind ended up there, you
know, But it's it's I I think also a challenge for us to think
about how how do we communicate that and how do we invite people
to not necessarily again right to join us but to study and see
what this could be. And that what you said, you know
and what we talked about before. You can only get value out of it
when when you add value to it. And that is just a 180 from what
we currently live in and that we want.
To be winners. We don't want to be martyrs, we
want to be winners. And if you have an issue with
the atrocity taking place in the world, you don't need to get
behind William Wallace with a sword and go and slice up your
opponents. You just move your shitty
fucking cockbucks your your energy out of an old dollar
dollar derivatives, all of your old BB before Bitcoin monetary
instruments. Just move them all into Bitcoin.
Sit back, enjoy the oh. You just start ignoring it,
right? You start start ignoring the
system that affects you in in multiple ways.
And by the way, I also agree with what you said.
It is either zero or everything. That's always been my thesis
actually from the start and it is not, it's definitely not
going to 0. So it has to be the other thing,
you know. So yeah, I agree.
And that maybe again is also something that when you look at
history, right with the fall of Fiat money, a few different Fiat
monies from different empires that rule the world, it's just
also really hard to actually realize that we are in this same
moment, right. Like the fact that something
that is, that has repeated in history is actually happening
now at the time that we are alive and that we can actually
participate in it in a certain way that we can actually protect
ourselves and help other people. Like that is so big.
You know it's so it's it's just really big.
And so that is one of the things I've thought about a lot, that
that once you realize what Bitcoin is and but then you put
it in this historical perspective, you instantly start
doubting yourself, like, could this really be, am I living in
this moment in history? Like, yeah, duh, like every day
is history, right? But but it's just, again, one of
those points I think is nice also to share with other people
that even for people like us who were totally into this, like
these thoughts exists, You know, you're like, you can be
convinced of what this is, but there are moments that you
actually doubt yourself or you know what this could be.
It's but it feels like my life has become this like dreams of
living in some like dream state almost where it's just like, I
don't know. It's almost like the discovery
of Bitcoin is like hacking the matrix where you're just like Oh
my goodness like this is almost too good to be true.
Like, am I going to wake up in some?
Like we're all so broken inside because we know if we're not
sociopathic and willing to lie, cheat, steal and kill, we're out
of game theoretic disadvantage within the marketplace.
And it's like, depressing, you know?
And so, you know, as far as I'm concerned, and I genuinely
believe this, like this is the most exciting thing to be a part
of as far as I can tell in all of known history.
Like, and if you understand that, like, holy motherfucking
bully dude. Like, how lucky are we?
Is that like, are you kidding me?
We are riding this wave. This is the most beautiful, epic
thing that has ever happened. And that is just so, so special,
man. It's just so fucking special.
Let's also, I think, address that we should allow ourselves
to actually experience it, right?
Like, yes, we are here, you know, and this is happening in
some way or another. Yeah, I agree.
So then on to the segue to the to the next thing we want to
talk about this trading shit, coins versus huddling your
Bitcoin, I think we talked about.
You. Know when the price goes down,
we buy more Bitcoin. I think we talked about the
nihilistic world versus the optimistic world.
I talked about that a lot, actually, with Eric Cason in one
of the previous episodes, I lost that interview.
Nihilism versus optimism, but trading shit coins versus
huddling. Like for me it is.
I mean, I I tried out crypto stuff.
I tried out NFTS like I I did that because wanted to
experience it. Like how does this work, You
know figure all that stuff out. Made some money all into
Bitcoin. But like huddling Bitcoin, I my
life is so much easier actually. Like I don't have to do
anything. We're trading coins is like you
have to look for the next gem and the next team that's gonna
promise like blah blah blah. And then I'm going to invest and
just, you know, I'm going to try to sell after the first pump.
Like, now that I look back on that, like it gives you so much
unnecessary mindspace, But like, what are your thoughts on
trading shit coins versus puddling?
I think it's a BB, it's a before Bitcoin strategy.
It's an old world strategy. And you know, I I feel like a.
So yeah, some people are capable of advancing their position, but
it is unethical and in the sense that like it's like cutting
people off within traffic. Like you're exerting a lot of
energy, you're reducing your fuel consumption or whatever.
If you're capable of like zooming through and changing
lanes and get further down the road, like I don't know, some
people are capable of doing that.
I don't have the bandwidth. I don't have the time.
I don't have the energy. Dude, I got wrecked in the 2018.
You know, ICOI was the. Exit.
I was the exit liquidity for a bunch of these scumbags just
dumping on people. But I do think this, I think
that the whole ship coin and the famous words of Crowder, the
whole ship coin movement is essentially A flawed.
The value proposition is a flawed premise because it's if
the price pumps on any of these then you're going to have a
bunch of dummies going by Lambos.
They're going to sell down their position to go and get catch
their thousand X to go buy some dollar denominated dollar
derivative, have some fun or whatever, right.
And so that means that it's a trade.
That means that you're you have to exit your position and
realize your gains or take profit, right.
As like big boy Crypto would say, oh, hey, we're taking
profit, right. And so I think that that's the
one of the issues I I like a simple strategy.
I think the simple strategy also offers you the highest
probability of success. And in the famous words of
sailor and Bitcoin, Prague 2023, trading Bitcoin is AI wonder if
he even meant to say this. I wonder if it just like whoops
slipped out of his mouth or if it was premeditated for his
keynote. But trading Bitcoin is a sign of
lesser intellect if you understand how important Bitcoin
is. It's too much risk, 1% of the
days. So it's like 9-9 and a half, ten
days out of the year, responsible for, I think it's
90% of the price moves. And so, you know, and so I think
too, like, if I were to sell some Bitcoin, I'm only selling
Bitcoin for something that I absolutely, immediately need.
A couple years ago, I was chatting with my dad during
2021's bull run and I was like, hey, look, Bitcoin's 50 grand.
Like, I'd sell it. You should sell it.
I'm like, but for what? For what sell it for?
What? Like, I don't, I don't.
You know what I mean? Like, what am I going to sell it
for? Because then if I sold it and I
had dollars, now I got to buy the Bitcoin back, right?
Like, and it doesn't make any sense.
You could wake up tomorrow to make this.
To me. Yeah.
I want to make this you don't know, like sell for what?
Sell for what? Like what are you going to do
and 100% agree with you? Like it should be for something
that you actually want or want to experience but not for
dollars in your bank. Like you are this far.
Like then you are going back. Totally.
And so I think another issue with altcoins, so Bitcoin is the
discovery of scarcity. It is the proof.
It's the dominant proof of work protocol by a longshot like
there is no second best, right. And so any of the other altcoin.
So if you have an altcoin, let's say you're looking at like
Ethereum or Solana or XRP, right, Like the whole idea that
XRP is going to become the world reserve currency is because
these dummies are paying for Google ads and they're they got
some false narrative. That's a false premise because
do you think that the governments are going to buy
coins XRP from people when they could just pay their own team to
write the new protocol? They would just write the new
protocol that and then if you're going to build a proof of work
network or a smart chain on nothing, why wouldn't you just
build that as a layer two or layer 3 on the harder substance
in the known universe? So it's an old world strategy of
looking at cryptos as like this, these, this tech boom and you're
going to be able to catch 1000 X on this tech stock.
But then once again like you're going to have to sell your
position. And I also think about it.
And lastly, I think about it in as similar to what happened with
the.com bubble, having a digital storefront, a website is so
revolutionary that created all of the speculative mania and
companies like pets.com. Some group of people start
incorporated, they they bought the domain pets.com and then
they went through the SEC filings and started selling
equity on Wall Street in their company that had no business, no
earnings, no cash flow, they didn't have a functional
business. And so that's just like having
having a honest incorruptible distributed Ledger is so
revolutionary. Having a incorruptible protocol
is so revolutionary that it's creating this mania where people
are buying all of these, these spin off versions of it that
really have no world use case. No, the market doesn't want
them. People are trading these coins
speculatively, you know, I love it when somebody tells me about
their fucking shit coin and they're like, Oh yeah, we got
this cool protocol and all this. I'm like this, where's where's
the use case? Like are people using it and how
are you getting funded? Oh, oh, you have a coin.
Oh, so you're dumping a bunch of pre mined coins to fund
something that the market is not paying for.
If the market wants it, they'll fund it.
If there is not something in the marketplace, in the market wants
it, they will bid the price up. There will be an economic
incentive for entrepreneurs and capital to produce that and
associate the demand. All of this stuff is just
insiders just dumping their bags on you.
It's like the whole thing. It's.
Just it's a game for most. It's a game for most people,
right? But I dude, yeah.
And I agree, like, it's not. What is the incentive for a
government to adopt XRP as some sort of currency where there's
like nothing defensible about XRP or something?
Like there's nothing proprietary there that cannot be created by
a government. It's weird.
I I don't understand that people are still in this.
It's kind of like this, hope you know.
But I mean like from my background I've been in the
startups and digital businesses for like 10 years.
Like most most of them fail right?
And I see the exact same. I say I am in this WhatsApp
group where people talk about Bitcoin but crypto as well and
they're like oh, I found I found this little gem it's only like
1,000,000 market cap and it's a great team.
Look at this like white paper or fucking website and everything.
Like dude like this is. This is.
This is that speculative diversified portfolio strategy
could make some sense. Let's say you have 10 grand and
you put a you're. Betting on some sort of
innovation in a certain industry.
But you know, I think the difference between Bitcoin and
crypto is, you know, Bitcoin is a decentralized protocol and
that represents like the discovery of digital scarcity,
digital property. And crypto is just an attempt by
startups to to build some sort of technology where their token
fuels the use of their system, right?
They say like, oh, we built this system and there's a token that,
you know, you can exchange to make things work in this system
and that is what you can buy that token.
But, but the adoption of the token doesn't represent the
usage of that system or that product, right?
Because it's pure speculation on the value of it, and people
conflate that also. Yeah well and I believe that the
venture capitalists and the developers within the greater
crypto market, the non Bitcoin market, they have a there's a
distortion, There's like a broken feedback where they
believe that the market wants what they're doing.
They're being supported through the speculation.
We're also because of the rate in which the currency is
debasing and the the extreme fuckness that's taking place
amongst the populace and it's time preference.
People are yoloing into this crap like in the famous words of
American Hodel, like you think 1000 X on her shit coins going
to change it. You only do that because you're
so fucking nihilistic. And the world so fucked, dude.
And so these developers in these venture capitalists are getting
paid and they're making money and they think that the world is
supporting them, but it's because of the brokenness within
the world. And so it's just this entire.
Value of their products, No. Yeah, it's not the value of the.
Product navigate around the SEC rules and I'm I'm a free market
maximalist. I'm not going to be a promoter.
It's like when Sailor was talking, talking to Lex Friedman
and Lex is steel manning the shit out of him And he's like,
Oh well, I don't want to think about attorneys and rules and
whatever and say there's like, hey, hey, how about let's look
at the SEC laws from a different perspective.
How about let's look at through the biblical perspective of thou
shall not lie, cheat or steal. Like that's what it is.
That's what SEC filings are for. Disclosing where your money came
from, disclosing what who owns, what percentage of what shares
you have there. And so I think that the whole
greater crypto market is a way to navigate around that.
Let's look at lastly, I'll say let's look at Ethereum.
Famously, Cat Purse Boy sold off billions of dollars of Ethereum
and it tells the world, well, hey, it's great financial
planning. Well hold on, if your protocol
is so great, why are you selling down your your Ethereum?
Like wouldn't you want to hold it?
Like, if you just think about it for any longer than two seconds,
at least that's for me, You realize that all of the other
stuff is garbage. Dude, there's no second.
Best. It's so great.
I'm selling it. Yeah.
What are you talking about? OK, so lastly let's talk about
the subject that is dear to your heart.
I think the broken incentives of our food and and like how that
how the how broken incentives wrecked our food and medicine.
Yes. So I'll give you the most
comprehensive but condensed version of my perspective.
There are my life story and why I have my perspective.
So I'll build the foundation and I'll share what my perspective
is now that I'm 39 years old and through the lens of Bitcoin,
developed trader understanding. So my parents divorced when I
was at a young age. I was five years old.
The reason that my parents divorced, I think partially was
due to societal struggles relative to the boom, bust
cycles within the economy as a result of the modern monetary
system that we have, the Keynesian economy and my mother
remarried to a psychiatrist, this guy's a doctorate degree,
no alcohol, no tobacco, upstanding individual.
My family's of, you know, was a classy, upstanding, productive
members of society. No physical abuse, no
molestation, no craziness, right?
My mother remarries a few years after, or actually quite quickly
after my parents divorce, she remarries a psychiatrist.
The psychiatrist works within the prison system in Southern
California and he prescribes pharmaceuticals to inmates
within the prison system. So he's prescribing all these
antipsychotics and anti anxiety and antidepressants and he's a
credible figure within our society.
Here's a doctor. And my mother ends up getting
into antidepressants. For 15 years of her life she
took antidepressants while she went back to school and received
a doctorate degree in sociology and became a professor of
sociology. And so my father, my biological
father, is a, is a structural engineer, licensed architect,
general contractor. So he draws, builds and does
nice houses, subdivides restaurants, commercial
buildings. Stepfather's a psychiatrist.
My mother's a doctorate degree in sociology.
So at a very young age, we had a lot of deep philosophical
conversations on our, like, family ski and snowboard trips.
And my dad, he's not a dummy. This guy's a successful
individual. And so my mother for 15 years
though, starts taking pharmaceutical pharmaceuticals.
Not like she's not into Oxycontin and snorting Klonopins
or doing crazy like things. She's just popping
antidepressants and anti anxiety.
And she goes to the she has her own psychiatrist She goes to and
hey, I don't feel good. Well let me give you this, blah
blah, blah. So in my early teens, I
discovered cannabis. Some of my friends were smoking
cannabis. I smoked some cannabis.
I'm like, wait a second, like, you know, this isn't some dirty,
this dingy drug. This is just a plant.
Like, why is this illegal? But all these crazy
pharmaceuticals are legal. Why is it you can go buy alcohol
and tobacco, but you can't buy cannabis?
And because of the deep philosophical conversations that
I was a part of as a result of my mother getting her doctorate
degree in sociology, I was, you know, I'm a 1012 year old while
she's writing her doctorate thesis.
And so we have these fun conversations.
As a family, I was primed to think outside the box and deeper
abstract, philosophical long term thoughts.
And I developed a big mistrust of for the system because it
just kind of there was just things didn't make sense and it
just, you know, started to question the system.
And then I started to get shunned and disliked you could
say by my teachers and parents, friends who said oh Eric, you're
so smart and you have all this potential.
Why are you into weed, you little dirty drug addict?
And like you know, I had an issue with the the school
system. Now I call them government
indoctrination camps. Like why am I going to have to
to go home and do a bunch of busy work when I can pass your
test? Give me the information, I'll I
will learn what I need to learn and then I'll come back and I'll
take the test. But you want me to go home and
spend all night long just doing busy work, like you can get
fucked. And so I essentially dropped out
of high school by the time I was a senior in high school,
developed an affinity for cannabis, no other drugs, you
know, And I just, you know, kind of started doing my own thing.
My mother ended up committing suicide at the age when I was 20
years old. The pharmaceuticals that she had
been taking for 15 years of her life didn't solve any of her
problems. And I used to tell people, like,
why? You know, I used to ask her,
like, why are you taking those pills?
You know, your ancestors 100,000 years ago that, like, lived in a
cave who went out to the forest and couldn't find food?
They didn't go back to The Cave and say, hey, I'm really
depressed because I didn't get any food today.
Let me just pop these fucking pills.
No, they did something to change their circumstances.
And so I developed an enormous inversion to this patented funny
like over prescribed pharmaceutical industrial
complex and as a result of losing my mother at a young age
and other family members died as a result of taking these
pharmaceuticals And it wasn't fentanyl, it wasn't Oxycontin.
Overdoses like these are people who who struggled at because
that the pills weren't solving their problems.
Now, I do think that technological advancement within
the medical industry has fixed things in our society,
antibiotics, so on and so forth, forth, But I developed a huge
mistrust and it drove me actually into the cannabis
industry at the age of 25 years old.
I'd been selling cars for the Toyota store for a couple years
in my early 20s I and it was a fun job.
I learned a lot about people and negotiating and whatever.
And it was an easy to sell Toyotas, because Toyotas sell
themselves and whatever. And someone invited me from
Southern California to Northern California.
A friend I went to high school with invited me to come up and
trim some cannabis because they knew I had an affinity for
cannabis and I took that opportunity.
I came up and I started trimming.
I trimmed for a season and I started working for the grower
the following year. I lived out in the woods in the
middle of nowhere by myself for two years with no cell phone and
no Internet service. It was at 262526 years old.
It was quite an interesting time of my life and so for me, I
wanted to see cannabis prohibition ended.
I wanted to put an end to that. I wanted to contribute in my
revolutionary way as the you to the big pharmaceutical
industrial complex that as far as I'm concerned had a hand in
killing some of my family members.
Every time I bag a pound and sell it into the marketplace.
It's a middle finger to what now I understand it is the Fiat
world. And thank you to Jeff Booth and
to Michael Saylor. I would give them the most
credit and then breed love and case in and all.
I can go down the list of just all of these, just epic
contributors to the Bitcoin knowledge base that I have been
Privy to. I understand now that as the
deflationary forces take place within the market, in order to
hedge yourself against prices falling to the marginal cost of
production, you either have to, you have to essentially build a
regulatory Moat around a sector within the marketplace.
You have to get a patent and be the only one who can produce
this thing. You have to keep your patients
sick and dependent upon the pharmaceuticals that you're
selling them. You can't.
It's like a a, a patient cured as a customer lost.
Well, that incentive is only because the expansion of the
monetary units, the Keynesian lie, the modern monetary trash
that we're being forced to use, means that the deflationary
forces, we push things prices down on things as we create
things more abundantly that the marketplace wants.
Paired with the inflationary forces in our monetary system
requiring prices to go up on everything, it means that some
margins are perpetually harder to make.
And in order to make those margins, you have to put the
proverbial knee on the neck of the marketplace and exploit
them. And so the exploitative nature
of the broken incentives within our monetary system killed part
of my family. As far as I'm concerned, it's
because this the the incentive is to figure out how to extract
perpetually more margin. And you know, Saylor says money
is economic energy. I think about that.
It's literally life force. So you have a broken paradigm,
which also stemmed from the physicality of gold was very
limited. One of the banking bloodlines,
great. You know guys, many many got a
couple, 100 years ago or whatever he this guy figured out
hey, I'm going to house the gold and I'm going to issue
certificates and it made sense to use the certificate and
travel to another country and buy land than to have to cart
your gold around because some guy will just prick you and
take. It in Amsterdam this was yes.
Yeah, so that made sense. Though that was a technological
advancement. We needed that.
It made sense. Well, that now because
everything pre Bitcoin has been pretty easily corruptible, LED
into a corrupted marketplace with a corrupted, broken
monetary system that's toxic. And so that creates a broken
incentive. The incentive is to figure out
how to extract more than I'll I'll kind of wrap it at this,
but a good example is, is there's two companies within the
states that have access to the patent to create insulin.
So insulin is very profitable. If we had a free market where
there wasn't a regulatory Moat built around that sector within
the marketplace, that's a huge economic incentive for
entrepreneurs and capital to flow into that sector of the
market to make a bunch of insulin making insulin really
cheap and abundant bringing its price down.
Well, I see. It's, it feels like I see a
story or hear something. Some kid who's 25 years old gets
dropped from his parents, medical insurance has been just
poisoned and gas lit and lied to with the food pyramid and all
the sugar and all the garbage that they've been eating.
So now they have a they're they're diabetic.
They can't store fat. They can't, they can't.
Their body doesn't function properly.
They're dependent upon this insulin.
So you got this food industrial complex that's just getting paid
to just wreck people. You got the medical industrial
complex getting paid to just keep fucking keep them alive.
Barely. They get dropped from their
parents insurance and they can't afford insulin and they're dying
so that the insulin is very profitable and people need it to
live Well that would be a huge incentive for entrepreneurs to
produce insulin. But they can't because there's a
regulatory Moat built around it because the companies that.
And so here's the and I'll this is, I'll segue into one last
thing that's just so epically beautiful about Bitcoin.
The board of directors of these companies like Nestle that's
going to go drill a well in some impoverished part of the world.
And instead of giving the water to the people who don't have
clean water that are dying from basic diseases and bathing and
drinking water out of the streets, instead of giving water
to help these people, they're selling water to people who
don't even have any money. Instead of, instead of that at
the end of the year. Well, OK, because these people,
these corporations are made-up of people.
It's like Jeff who says there is no they, it's just us.
It's made-up of people that are serving their self-interest and
they have a fiduciary responsibility to provide
shareholder value. They want to keep their
earnings, their cash flows, their corporations successful in
a marketplace where there's all this competition.
And so because of the accounting changes at the end of the year.
The path of least resistance, the most energy efficient way to
get the most because of the game theory is this for these
corporations to sweep their surplus in the Bitcoin instead
of perpetually exploiting. And that's a big deal.
So now that Trojan horse of freedom and abundance for all is
in the castle. And here's the letter.
They dive into that, dive into that wait.
So what you say is they have all this excess capital by basically
abusing humans in a whatever way that is their incentive, right?
Yep. But now you say like there's
there's an alternative solution. So instead of actually helping
the inflationary forces by keeping the food bad, by not
allowing people to have certain innovations on certain drugs,
for example, what you mentioned about, you know, the access to
insulin. I say like because there is
another, a better way to keep the value of the cash that you
generated through this, you know, malign business.
Basically, their incentives get switched, so they actually go
from a short short time preference, right?
Yep. Abusing, consuming, abusing
other energy from other humans to a long time.
Long time? Yeah, exactly.
To a long time preference. Which is basically saving the
value they already have in Bitcoin.
That's what you're saying, right?
Yeah. And so let's look at Saylor with
MicroStrategy. You got a fiscally responsible
conservative individual who has $500 million on the balance
sheet. COVID hits the government, now
starts to basing the currency at hyper rate.
He knows he has an existential crisis.
If you're a publicly traded corporation and you're in his
position with a surplus, you can essentially do three things.
You can buy back your own shares, you can buy shares in
another company, or you can pay out that surplus in the form of
a dividend, or you can convert it to a property, gold,
whatever, right? And so a commodity the most the
way to get the most is is to take that surplus and buy
Bitcoin. Now because you're the the
appreciation that takes place on your balance sheet is happens at
such a fast rate that you're providing the most, the most
shareholder value by stacking the SAT's than you are by either
getting gobbled up by a bit. He could have sold all of the
shares within, he could just sold the company to Microsoft,
been consolidated and rolled up right.
And so you the pre Bitcoin the strategy is is become the
biggest fish or become gobbled, gobbled up by the biggest fish
and take an exit position that's large enough that allows you to
become a concilionaire and live off of the equity that is found
as the result of the depreciation of the currency or
the expansion of the currency units.
And now corporations are incentivized to get the most, to
provide the most shareholder value come the end of the year
to stack SATS. And that is also a
decentralizing force and not a centralizing force.
Because also, if you're a corporation and your valuation
goes up, you're incentivized to go leverage your valuation in
the form of taking on more debts and going and buying.
I don't know, more warehouses like Amazon is doing.
And the in sailor's case, he's destroyed the paradigm.
All your models are destroyed. He's created a feedback loop
where as he keeps stacking Bitcoin, the value of his
company keeps going up. They have to, because of
fractional reserve lending, keep lending more shitty Fiat into
the marketplace. He goes to the banks and goes,
hey guys, I'm a fiscally responsible guy.
We got a cash flow, pass it over here.
They do. They keep loaning the money and
he keeps put it into bitcoins like you fucking dummies.
And then the value of his company keeps going up and he
keeps borrowing more Bitcoin and more money and buying more
Bitcoin. And so he's going to own the
fucking whole world if these other corporations don't start
doing it. And that's exciting, because now
instead of Nestle going and drilling a well in some town in
Africa and selling these people who have barely any money water,
they're going to stack SAT's and then So it's just such a big
deal, man. Bitcoin is such a big deal.
And the more and more I think about it, the more and more
enthralled I become. The more excited I get, the less
depressed or less worried or less concerned I am.
And we're grateful that I am. I'm bursting at the seams with
motherfucker gratitude, dude, this is such a special thing.
It's so precious, dude, I can barely believe it.
Yeah. What I love is that I hope we
can get also this opportunity to fix like that broken food and
the fix those medicines, right. I love the example that you have
and I use that a lot as well. The the deflationary force of
technology, right, right. That will push prices down.
I think nobody can argue against that, right.
Like rationally that's a great thought, like the more
technology improves, the more prices fall to the to the margin
marginal cost of production, right.
So then I always ask this question, why did a bread cost
$0.25 and it's now $4.00 or $5? That doesn't make sense.
It should actually be free. It should be like, you know, in
this like sci-fi show or we had, we had a show here where people
had like, like a like a pill and they would put in the water and
it would pop out as a bread, right?
Like we should be there and it should borrowing for everyone
and it should be like nutritious, it should even be
better than the bread of 40 years ago.
But currently we have 4-4 or $5 or euro breads that are
nutritionally probably worse than the breads of 40 or 50
years ago, right? So we are basically going back
in time and why are we going back in time?
Because this deflationary technology force is battling the
inflationary money and that is what the money does.
The money removes the incentives to actually innovate to make it
better. Because it, it flips, it gives
you perverse incentives to abuse the position that you already
have, right as you, as you just mentioned with Nestle, for
example. And so, yeah, I think that is
like a that's a very good illustration and also
explanation that you can use to explain to people, because most
people do think it's weird that it's funny that we joke about
the bread was $0.25, right? Yeah, yeah.
And then if someone says, well, everything becomes more
expensive, then you can ask, well, why?
Like give you a logical explanation of, you know, why?
Why is that? So those those those things I
think anyone can eventually understand, like you can use
that to break it down. Kind of long and hard though,
like I had to wire new neuro pathways to understand it
because it's a new way of looking at the world.
And you're you don't understand necessarily until you think
about those two opposing forces. Those two opposing forces mean
that your margins are perpetually harder to make.
Your cost of living is going up denominated in dollars, but
you're experiencing wage deflation.
As a producer of anything, you just have different flavors of
the same thing. So you're incentivized to either
monopolize and exploits or shouldify whatever it is that
you're making, and Bitcoin inverts that.
And that's it's just a really big deal.
Like I I tell people two things when they're say, hey, you know
what the the plundering psychopathic entities, you could
say are just going to continue to plunder in perpetuity
forever. And they don't understand what
we've discovered incorruptibility.
Well, I'll ask them this question.
Why don't we live in the Roman Empire?
Like, why is it we live in the States?
Why is it the United States? Why are you in California?
Why are we in Texas? Why why don't we live in Rome?
Why didn't Rome just take over the whole world and then just
run the whole world? Because the business model isn't
sustainable. Because that centralizing force
of debasing to fund your plunder eventually breaks.
Another thing that I'll ask people is, is why is it that a
house that you live in or that you just bought that's 50 years
old that's shitty and has asbestos ceiling and needs to
have a roof replaced all the time?
Why is it that that house cost 10X20X what it did 50 years ago?
It's because the value of the house is denominated and another
variable, a moving metric, a dollar, which is losing its
value so fast. It's creating the optical
illusion of price appreciation or value appreciation.
Your house is losing value like your used car is.
You just can't see it because there's an optical illusion
taking place. So while people have like I love
how Sailor broke it down in Bitcoin Prague.
He says that essentially if you have paid for real estate, let's
say you have $1,000,000 piece of property, it costs on average 1%
of the value of the property annually to maintain the
property. And if you live in a
jurisdiction with 1% real estate tax, you're losing 2% of the
value of the property every year.
If you equate that to a half life, you have a 35 year half
life, you lose half of the value of the paid $4 million property
over 35 years. People just don't see it though,
because they think they're getting wealthier and they are
if you denominate their wealth and dollars.
But if you look at how many dollars they have relative, how
many dollars are within the system, they're actually getting
poorer. And so that's why if you have
one out of 21 million you can depend upon.
It's also it's a it's a constant within a world full of nothing
but variables. It like allows us, in this very
abstract kind of way, to solve for something you've never been
able to solve forever in all of known history.
Yeah, I love it, man. Yeah, that's awesome, man.
I love it too. All right.
Last last part and then we can wrap it up.
Almost two hours, man. This has been really.
Fun man. Yeah man, We had over 1000
viewers on the live on Twitter, so that's fun.
Incredible. Oh my goodness.
Thank you to. All of everybody who watches, by
the way, Yeah. Awesome.
Last last topic is someone sent this on Twitter.
Can you talk a bit about the synergy between Bitcoin and
cannabis and how each could benefit the other in the long
run? Yeah.
So I think it ties into the incentive, the broken incentives
to where it's because of the Fiat paradigm where your margins
are perpetually harder to make. It's the shootification of
everything. It's like read Jimmy Bong songs,
book Fiat ruins everything because your margins are harder
to make. Because we live in a
fundamentally deflationary world.
That means that you have to do unethical things to success,
succeed, essentially. It creates this sociopathology
or something. It's like, yeah, just breaks the
brain of some people or the people who are willing to
plunder, become the people who get the most within the
marketplace. They have to build a regulatory
Moat around some sector in the marketplace and it and it
incentivizes people to create some cheap, shitty widget.
It incentivizes planned obsolescence where you're you're
a corporation and you make a widget and you're planning on
that widget failing so that other people can, so that your
customers can continue to come back and buy more and buy more.
And so with cannabis, I think cannabis is a very powerful
medicinal herb. It's one of the most powerful
herbs, most powerful medicines on the planet, both spiritually,
emotionally and physically. I've been doing this for 15
years. I'm in Humboldt County.
I can't even tell you how many people and how many stories I've
heard of people using cannabis oil and they've healed stage 4
cancers, cannabis. There are constituents and
molecules within that the cannabis plant produces that
perform a process called apoctosis, which essentially
that molecule can go into a cancer cell, it can penetrate
the cell membrane barrier, it can kill the cancer cell without
damaging healthy cells around it.
So it's kind of like the opposite of chemotherapy, where
chemotherapy can kill a cancer cell, but it's kind of like
dropping a nuclear bomb on an area where you essentially kill
everything. And people who take chemotherapy
become very, very sick and then they will kill the cancer and
then they have to recover from this essentially just mass
extermination of all the biology that lives on us and within us.
And it damages healthy cells including and sometimes it
doesn't even kill the cancer cells.
So there is some some special things there with cannabis that
I think over time. And also there's this monetary
incentive as the government's become more broke because it's a
government debases its currency, it makes its operating cost goes
up requiring either further taxation or further debasement.
So it creates this broken feedback loop.
And so kind of where I feel like Bitcoin is this Trojan horse
that everybody who's economically and every
challenged entity or every entity that's economically
challenged is going to bring this in.
I think the United States government is also going to
reschedule and decriminalize or legalize cannabis because
they're broken. They need the tax revenue.
And also so then that like, I don't know, cannabis too, for me
it really brings brings me into a state of being really present.
And I think that we get really bombarded with all these
stressors and things in our life that cause us to be too worried
about the future. And you're very anxiety ridden,
you're too concerned about the past and you're really guilt
ridden and I blah blah blah. Cannabis has this meditative
state. And I think that that helps
people emotionally and spiritually.
It's kind of very it's recalibrating in some
interesting way. And so I think the ethos within
cannabis is very similar to the ethos within Bitcoin, where it's
essentially something that the world wants that you can't stop.
How do you stop people from growing this plant that you
could just sprout from this little, teeny little seed,
right. How do you stop people from
wanting to fair and open and decentralized protocol, a form
of property that nobody can violate, confiscate the base,
etcetera. But I think there's a lot of
parallels there. But I think yeah just the the
broke state of the government and the banking system is going
to is bringing solvency in by stacking sats.
That's how you're gonna get the most and I think that the the
need for because you can if you're the government you can
get funded in two ways through taxes or through debasements.
It's both a form of property confiscation.
Both of those are an incentive to bring cannabis out of
prohibition and then bring the freedom virus which is Bitcoin
into the into the castle skates. And I think that both of those
things are good for people who want them.
Also if you're not into cannabis, you don't like
cannabis. Fair enough.
That's all cool. Don't go pop pills, drink
alcohol. Do whatever you've whatever
feeds your existence and makes you feel good.
As long as it's not harming others, I think you should have
the right to do it. And so both of them, as far as
I'm concerned, and embody this error of freedom and a freedom
to express and experience what you want with this existence
which is so precious and so special.
And I think that it is unfair, unethical for some centralized
corrupted authority to tell you what you can do or not do if
it's not harming other people. So yeah, that's an epic ending.
Yeah man. Well, I'm just so grateful to
have had this conversation. I really enjoyed talking with.
I enjoyed our time in Madeira it.
Was so fun, It was so good. And again, I I said this on
another podcast actually on the high hash rate guys, but the
high hash rate guys. Shout out to those guys, I love
those. Guys, yeah, yeah, totally.
Anyone who is into Bitcoin, how much doesn't really matter.
Like I would invite everyone to join.
Like a real life event. Meet other people.
You can go alone. I flew alone to to an island.
You know. Like you will meet other people
that are into the same thing and they will challenge you to share
your thinking and your ideas and you will have amazing
conversations. Like the the entire energy is so
much fun. And I think it's palpable to
also feel and realize that this is a huge thing that connects
people all around the world. So it was awesome seeing you.
It was awesome having this conversation.
We'll definitely do this again in the future.
And yeah, thanks so much, buddy. I loved it.
Yeah, thank you. And shout out and thank you to
all the people watching the live stream and I, you know, at all
my followers, I'm kind of in a little bit of disbelief.
My Bitcoin journey here, I just, I don't know, so grateful for
everybody. So thank you.
Just, we're just dudes. We're just sharing.
Yeah, whatever. We're experiencing and thinking.
And I think you're doing an amazing job, man.
You're an inspiration to me. So thanks again.
And yeah, same to you. Let's talk soon.
Cheers man. Yes, yes.
I hope you enjoyed this episode. If you did, it would be amazing
if you could rate, review and subscribe on the podcast
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You can follow and connect with me on Twitter.
I'm Bram K That's at BR AM K and if you are or know someone who
has an interesting perspective on Bitcoin that's worth sharing,
hit me up. I read and reply to every single
message. I appreciate your support and
hope you'll be here for the next episode.
Thanks for listening. Bye.