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All right. 
Hey everyone, this is Bram 

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Constein and you're listening to
Bitcoin for Millennials. 

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Together with my guests on this 
podcast, I go on a journey to 

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discover how our current 
financial system works, why it's

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flawed, and why Bitcoin is the 
most relevant technology that 

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you, my fellow millennials, 
should understand and adopt. 

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In this episode of Bitcoin for 
Millennials, I'm joined by CJ 

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Constantinos. 
He's a nine year Bitcoin veteran

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and has been stacking and 
holding Bitcoin since 2014 and 

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even mining Bitcoin since 2016. 
He believes Bitcoin is 

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commoditized energy. 
We'll definitely talk about that

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in the form of money, the 
reserve asset of the Internet 

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economy, and the most pristine 
form of collateral in the world.

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Because of these attributes, he 
believes that the future of 

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finance will be built around 
Bitcoin. 

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Well, these are a lot of topics 
to explore and I'm excited to 

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dive in. 
So welcome man. 

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Thank you. 
Thanks for having me. 

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Yeah, that's basically my entire
Bitcoin thesis right there. 

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All right, well, that's that's a
lot to talk about. 

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I love, before we skip to my 
first question, like 

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commoditized energy, like I use 
that as well and I I love that. 

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And I think it kind of ties in 
to when people say like, oh, 

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Bitcoin is not backed by 
anything. 

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Is this the answer to that? 
Oh, absolutely, absolutely. 

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It's one of the most stressful 
things that I'm experiencing 

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right now in the marketplace is 
that people don't understand the

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basic concepts of business. 
I mean, you start a business to 

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make a profit, right? 
So. 

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A lot of people in this zero 
interest rate policy, it was 

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about getting customers. 
The bottom line was not as 

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important as the top line 
because the money was cheap, 

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basically free for the big 
corporations. 

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So capture as many customers as 
you can because one day later 

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we're going to monetize them. 
Well, that's not really how it 

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works in an economy where rates 
are where they're supposed to 

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be, and they're still too low 
for where they need to be right 

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now. 
But. 

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As they correct, what we'll see 
is that companies become more 

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focused on the bottom line 
rather than the top line. 

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It's not about customer 
acquisition, it's about quality 

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of product and profit and profit
drives the whole economic 

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engine. 
So if you're in business and you

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have a cost, it should be common
sense that you can't offer your 

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product or service for less than
the cost, right? 

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Because then you have no profit,
You're better off just. 

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Closing down your business and 
getting a job because at least 

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you'll make money for your time 
and energy. 

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But if you run a business that 
can't run a profit, what are you

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doing? 
Well, the bottom line, where you

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determine your cost versus your 
profit, that is what drives the 

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whole decision making processes 
for producers. 

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So this, you know these laws of 
economics, these are natural 

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laws of economics that apply 
directly to running a business. 

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And it's no different for 
Bitcoin. 

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You know the cost to produce a 
Bitcoin if I'm mining Bitcoin? 

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And it costs me $20,000 to mine 
a Bitcoin or earn a Bitcoin. 

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I'm not going to sell it to you 
for less than 20. 

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I can't. 
The laws of business say that if

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I sell that for less than 
20,000, I'm going to go out of 

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business. 
It's a bad business, yeah. 

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Yeah, the natural laws of 
economics and the business cycle

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are what back Bitcoin as 
commoditized energy in the form 

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of money. 
That's absolutely the answer to 

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people who say it's not backed 
by anything. 

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And to maybe try to simplify 
that, like is that I once I 

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tried this in a tweet, right? 
Like anything, people create 

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anything, a service, a product, 
a building, a car or whatever 

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even, you know, jobs that 
require thinking, you know you 

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expend a certain amount of 
energy or you utilize that in a 

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certain way, right. 
And as you mentioned, like the 

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concept of a business is that 
you by putting in value, you 

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create value and what someone 
pays for you pays for that value

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basically. 
Or well, you put in energy, you 

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create value, someone else pays 
with energy as well or something

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that represents value, right. 
And if you run a good business, 

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the thing they pay is more than 
what they get. 

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Exactly. 
And if it's not, then that is 

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actually the free market price 
signal. 

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Telling you, that's the 
marketplace. 

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Telling you, hey, the value 
proposition of your good or 

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service is not good enough, you 
know, so you're not solving a 

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big enough problem for me that, 
in other words, the demand isn't

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going to be there. 
So the company can't charge a 

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price that's above the cost. 
So as price falls below cost, 

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that's the marketplace's natural
signal to the producer that you 

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should redistribute or 
reallocate your resources. 

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And focus on something where 
profit can be generated. 

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So the lack of profit is how the
market signals to producers 

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reallocate, redistribute 
resources, and figure out a 

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better product or service. 
That's going to solve a bigger 

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problem of mind that I'm willing
to pay for a price above the 

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cost. 
Would you say? 

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That's then perhaps true 
capitalism in a sense, right? 

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Like if we both have a bakery 
and I make better breads than 

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you and no one you know, even 
though we have bread quote UN 

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quote, but no one goes to to 
your bakery because your bread 

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doesn't taste good. 
You're not as good in bread 

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making as I am. 
Then I would win naturally, 

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right? 
So, so then the market requires 

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you to to shift your your your 
energy expenditure. 

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Absolutely. 
But not only that too. 

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And Satoshi has a quote about 
this. 

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I've tweeted this before, it's 
one of my more popular threads, 

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but. 
I'm not. 

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I can't directly quote him, but 
basically what he said was that 

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the cost of production of pretty
much any commodity or any good 

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or service always tends to 
gravitate towards its cost of 

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production. 
And the reason Is it because if 

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we have two breaker bakeries and
I'm making bread and people need

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bread and then you see, hey, 
he's making that bread for a 

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dollar and selling it for $2.00,
I want to get in on this 

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business. 
Well then, as you start to make 

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bread, what happens? 
The supply of bread goes up 

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against a fixed demand, or maybe
a slowly rising demand with 

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population, unless you invent A 
cronut or you know, some crazy 

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new bread type. 
Sorry, absolutely. 

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So as the supply of bread goes 
up, the price comes down. 

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Well, where does it come down 
to? 

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It trends down towards its cost 
of production and this, this 

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natural law of economics. 
It governs Bitcoin as well as 

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business. 
And if we follow the bread 

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example, but if the price goes 
down right, some people will 

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say, well, I'm going to quit my 
bakery because you know, I 

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cannot make enough money 
anymore. 

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The demand for bread stays the 
same. 

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There are then less bakeries and
then the price will slowly go up

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again, right? 
Absolutely. 

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And the amazing part with 
Bitcoin is where the difficulty 

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adjustment comes in. 
Right, because if somebody is 

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making that bread and the the 
cost is is too high and they 

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can't profit and they stop 
making the bread, well it 

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doesn't become cheaper for 
anybody else who's making the 

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bread to make the bread. 
What happens is the difficulty 

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decreases and as the difficulty 
decreases, it becomes cheaper to

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earn a Bitcoin through mining. 
So it's kind of like a 

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self-sustaining protective 
mechanism that we don't see in 

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any other good service or 
commodity. 

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In the world, the difficulty 
adjustment is truly the 

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technological upgrade to Bitcoin
as a commodity that makes it the

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best form of money and the least
risky commodity to produce in 

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the world. 
And how could we translate that 

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into a word people would 
understand like is is that like 

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I almost, I want to use the word
like market maker, but that's 

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not the word like it's kind of 
like this automated incentivizer

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for people to keep contributing 
to, let's keep with the, let's 

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stay with the example, right, 
like baking breads in that in 

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this example. 
Yeah, so the way I say is price 

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drives hash rate, Hash rate 
drives difficulty and difficulty

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drives cost of production. 
So as the hash rate goes up and 

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blocks are being added to 
Bitcoin at a faster than 10 

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minute pace. 
The difficulty? 

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Just wait a second. 
It's my job to make sure that 

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blocks get added at 10 minute 
intervals. 

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So if it's if the pace is too 
fast and there's more hash rate 

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than there was in the previous 
epoch, then the difficulty will 

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increase. 
And it will target a difficulty 

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that it believes will allow the 
existing amount of hash rate to 

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produce a block every 10 
minutes. 

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So as that difficulty goes up, 
it increases the cost. 

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For minors to earn that Bitcoin,
which that is the definition of 

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store value, right? 
Store value is higher lows. 

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Everybody gets really excited 
about the peaks. 

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Oh, 1020 thousand 70,000. 
When you're in Bitcoin for long 

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enough, you don't care about the
peaks anymore. 

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You care about the bottoms. 
Where are those bottoms going? 

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And that is what Bitcoin does 
best. 

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That's what was designed to do. 
That's the technological 

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innovation. 
The difficulty adjustment and a 

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digital commodity where the cost
of production, even if miners 

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are unprofitable and they have 
to turn off their machines, the 

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difficulty will adjust downwards
and then they become more 

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profitable. 
So taken with that same thing, 

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imagine you were making bread, 
but then all of a sudden because

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other people stopped making 
bread, it became cheaper for you

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to make bread. 
So that increases your profits, 

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it incentivizes you to create 
more. 

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Of course, we don't see that in 
the real world. 

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It's only. 
Something that's built into 

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Bitcoin, That's to me, that's 
the real genius of the 

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commoditized energy because it 
is. 

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It reduces the risk of 
competition, right? 

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And every other aspect of the 
economy. 

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If a business starts and starts 
making profit, competition is 

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going to pop up. 
Look at streaming services, for 

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instance, right? 
Netflix came up and now boom, 

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everybody has a streaming 
service. 

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Well. 
With Bitcoin, the more and more 

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streaming services or bakeries 
that pop up, the more expensive 

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it becomes to offer that service
to the marketplace. 

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And that mechanism is what 
protects bitcoins. 

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True. 
Let's call it fair value, yeah. 

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Or maybe maybe to to talk in 
like classic terms of like 

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marketing. 
It's like an automated barrier 

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to entry in a sense or barrier 
to to keep participating 

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perhaps. 
Yep. 

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And and that's a self-sustaining
mechanism. 

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So that's for Bitcoin. 
That's amazing because you know,

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I like to compare, we'll move 
off bread and streaming 

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services. 
Let's move the gold, right, 

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because gold is the the direct 
comparison. 

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You know, if the price of gold 
goes below, it's all in 

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sustaining costs. 
And and let me try to simplify 

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this down. 
If it goes below the cost of 

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production, right, that goes 
below. 

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The point at which it costs the 
making it out of the ground? 

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Literally, yes. 
Then they have to stop mining 

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because they can't mine at a 
loss. 

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Yeah. 
And then as they stop mining, we

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it's the same economics. 
Supply goes down against the 

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consistent demand, price goes 
up. 

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Same thing happens with Bitcoin,
except Bitcoin is in the process

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of its moving through that S 
curve adoption, right? 

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We're still at the bottom of the
S We're not. 

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We haven't made that big 
parabolic move yet. 

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Where where Bitcoin gets full 
scale adoption. 

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So at this point in time, I 
think what's so interesting for 

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millennials to understand, I 
mean if you can take away from 

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this interview one thing, 
understand this. 

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We are at the point in Bitcoin 
price discovery where we at the 

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bottom of the S curve when 
you're at the bottom of our 

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extra out. 
What this is basically exactly 

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right? 
Yeah, Yes. 

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When you're there, that's your 
point of a maximum opportunity 

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00:12:02,640 --> 00:12:05,280
because. 
The price is going to be 

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relative to the commodity value.
So that's why I call it the 

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commodity, the commoditized 
energy in the form of money. 

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Because right now the the price 
of Bitcoin is really it. 

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Like Satoshi said, it gravitates
towards its cost of generating. 

230
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But in the future, after we have
that huge S curve adoption move 

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00:12:27,560 --> 00:12:29,580
to the top. 
It's going to be about the 

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00:12:29,580 --> 00:12:33,700
monetary value of Bitcoin, and 
that goes back to your last 

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00:12:34,180 --> 00:12:36,780
interview of people that watch 
it with Peter, where he talks 

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about all the different values 
in the world. 

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That Bitcoin is going to have to
represent, whether it's 

236
00:12:41,590 --> 00:12:44,870
accounting and purchasing power 
store about all of the all of 

237
00:12:44,870 --> 00:12:49,310
these different forms of uses. 
That's the monetary value of 

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00:12:49,310 --> 00:12:51,190
Bitcoin. 
You you almost can't even put a 

239
00:12:51,190 --> 00:12:54,950
dollar number on it because it's
so vast, because it's it's 

240
00:12:54,950 --> 00:12:58,110
literally all the economic 
energy in the world divided by 

241
00:12:58,110 --> 00:13:00,230
21 million. 
That's the monetary value of 

242
00:13:00,230 --> 00:13:02,350
Bitcoin. 
But right now, you have the 

243
00:13:02,350 --> 00:13:05,550
chance to buy Bitcoin for its 
commodity value. 

244
00:13:06,070 --> 00:13:09,790
And in all honesty, nobody knows
when that transition is going to

245
00:13:09,790 --> 00:13:12,390
take place. 
So the fact is explanation. 

246
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Now's the time to get in. 
As a Millennial, now's the time 

247
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to establish your position and 
forget about everything else. 

248
00:13:19,510 --> 00:13:22,750
Focus on Bitcoin. 
It is the only decentralized 

249
00:13:22,750 --> 00:13:26,350
network, and if you if you're 
able to do that, Bitcoin will 

250
00:13:26,350 --> 00:13:30,790
empower you through its design 
by putting in those higher lows.

251
00:13:30,870 --> 00:13:33,910
And you'll be able to preserve 
and even grow your purchasing 

252
00:13:33,910 --> 00:13:37,700
power through time. 
All right, we got straight into 

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the deep into deep. 
Yeah, I know. 

254
00:13:40,300 --> 00:13:41,140
I love it. 
I love it. 

255
00:13:41,140 --> 00:13:44,060
I love it. 
You know, like one of my, one of

256
00:13:44,060 --> 00:13:48,900
my goals also with this podcast 
is like you. 

257
00:13:48,900 --> 00:13:51,860
You use a lot of terms and I 
understand all of them, you 

258
00:13:51,860 --> 00:13:53,580
know? 
And I'm I I love that we went 

259
00:13:53,580 --> 00:13:57,780
with the bread analogy because 
I'm also trying to like find 

260
00:13:57,780 --> 00:14:03,300
ways where we can you know, 
explain, simplify a bit more. 

261
00:14:03,300 --> 00:14:06,840
You know, like kind of I want to
say like create these little 

262
00:14:06,840 --> 00:14:10,160
threads that different people 
could pull on, you know, like 

263
00:14:10,160 --> 00:14:13,480
whatever, whatever triggers 
them, you know, or maybe hooks 

264
00:14:13,480 --> 00:14:16,600
them into, you know, learning 
about Bitcoin more. 

265
00:14:16,600 --> 00:14:18,600
But I love, I love what you 
said. 

266
00:14:18,600 --> 00:14:21,360
And also maybe to add to that, 
like now Bitcoin, I actually had

267
00:14:21,360 --> 00:14:23,440
a like a Twitter conversation 
about this today. 

268
00:14:23,440 --> 00:14:31,880
Like now you know Bitcoin is 
priced in dollars and later like

269
00:14:31,880 --> 00:14:35,690
as you mentioned like and I 
think this is still the thesis, 

270
00:14:35,690 --> 00:14:37,450
right? 
At least for me like Bitcoin is 

271
00:14:37,450 --> 00:14:39,690
either going to be nothing or is
it going to be everything. 

272
00:14:39,690 --> 00:14:43,290
Like I don't, I don't see a 
middle in there like this is 

273
00:14:43,330 --> 00:14:48,050
this is just my fault. 
So if it goes to everything then

274
00:14:48,490 --> 00:14:51,210
it will also turn around right? 
Like Bitcoin will not be priced 

275
00:14:51,210 --> 00:14:55,540
in dollars, but everything will 
be priced in Bitcoin, not in a 

276
00:14:55,540 --> 00:14:59,580
supermarket sense of way, but in
a value sense sense of way. 

277
00:14:59,580 --> 00:15:00,940
And I think I think we'll get to
that. 

278
00:15:00,940 --> 00:15:05,580
You know, what is the difference
between price and value and 

279
00:15:05,580 --> 00:15:08,980
money and currency and and and 
yeah, those things. 

280
00:15:09,580 --> 00:15:13,580
Yeah, absolutely. 
Well, I think a great way to 

281
00:15:13,580 --> 00:15:17,700
kind of simplify this down is 
getting into money versus 

282
00:15:17,700 --> 00:15:18,980
currency. 
Yeah, right. 

283
00:15:18,980 --> 00:15:22,530
Because Bitcoin is the. 
Bitcoin is money, but what we're

284
00:15:22,610 --> 00:15:25,490
what we call money today is not 
really money, it's currency. 

285
00:15:26,010 --> 00:15:27,930
And that's that's the real 
problem. 

286
00:15:27,930 --> 00:15:32,050
So that we've gone through this 
process of of I guess I want to 

287
00:15:32,050 --> 00:15:34,450
call it evolution, but I guess 
it's more like devolution 

288
00:15:34,450 --> 00:15:38,570
because we've gone backwards. 
You know, we had real money in 

289
00:15:38,570 --> 00:15:43,370
the form of a of gold and then 
banks would take that gold and 

290
00:15:43,370 --> 00:15:47,170
hat and hold it on their balance
sheet as an asset and then they 

291
00:15:47,170 --> 00:15:50,470
would issue paper. 
And that paper note would be a 

292
00:15:50,470 --> 00:15:52,470
claim for the gold that they 
held. 

293
00:15:52,870 --> 00:15:56,430
So that's a, you know, that's 
what I would call a paper 

294
00:15:56,430 --> 00:16:01,150
commodity money because it's 
paper, but it's still derived 

295
00:16:01,150 --> 00:16:04,710
its value from the underlying 
asset which was gold, which is a

296
00:16:04,710 --> 00:16:07,990
commodity. 
The the real trick that happened

297
00:16:07,990 --> 00:16:10,230
here and we're not taught about 
this in school. 

298
00:16:10,430 --> 00:16:12,870
You know, some millennials, 
we're not going to hear about 

299
00:16:12,870 --> 00:16:17,910
this going through K through 12 
or even in secondary education. 

300
00:16:18,500 --> 00:16:19,940
Right. 
You're just not going to hear 

301
00:16:19,940 --> 00:16:21,060
it. 
You're not going to be taught 

302
00:16:21,060 --> 00:16:22,780
this. 
But there is a difference 

303
00:16:22,780 --> 00:16:25,260
between money and currency. 
And the main number one 

304
00:16:25,260 --> 00:16:27,460
difference is store of value, 
right? 

305
00:16:27,460 --> 00:16:30,060
So the dollar is a fantastic 
currency. 

306
00:16:30,500 --> 00:16:33,300
It's a fantastic medium of 
exchange. 

307
00:16:34,380 --> 00:16:37,100
And some could argue actually 
that the existence of the dollar

308
00:16:38,140 --> 00:16:42,220
strengthens Bitcoin, right? 
Because as the the abuse of the 

309
00:16:42,220 --> 00:16:45,820
dollar continues to rise with 
the US government spending. 

310
00:16:46,260 --> 00:16:51,180
In the last 30 days, they spent 
$9.88 billion per day, right? 

311
00:16:51,180 --> 00:16:53,540
And at the same time, the 
Federal Reserve, through their 

312
00:16:53,860 --> 00:16:59,100
quantitative tightening, 
destroyed about $200 million per

313
00:16:59,100 --> 00:17:01,660
day. 
So on a net net basis, there's 

314
00:17:01,660 --> 00:17:06,980
about $9.6 billion that the 
government is spending into 

315
00:17:06,980 --> 00:17:09,460
circulation. 
Well, that is the definition of 

316
00:17:09,460 --> 00:17:12,140
inflation because you're 
increasing the amount of 

317
00:17:12,140 --> 00:17:15,970
circulating currency units. 
And they can do that based on 

318
00:17:15,970 --> 00:17:17,849
the vote, based on the budget, 
right? 

319
00:17:17,849 --> 00:17:20,770
They take a vote, they pass the 
budget, they borrow the money 

320
00:17:20,890 --> 00:17:22,970
and then they spend it into 
circulation. 

321
00:17:23,450 --> 00:17:27,730
That is our problem here today. 
You hear a lot of people, a lot 

322
00:17:27,730 --> 00:17:31,810
of economists talk about the 
1970s like we have 1970s 

323
00:17:31,810 --> 00:17:34,330
problems. 
Our problems are more like the 

324
00:17:34,330 --> 00:17:39,130
1940s, because in the 70s a lot 
of that inflation took place by 

325
00:17:39,130 --> 00:17:43,140
the banks lending. 
So people came to the banks to 

326
00:17:43,140 --> 00:17:45,580
borrow money, and they happily 
lent money. 

327
00:17:45,940 --> 00:17:48,460
Well, the amount of money they 
lent increased the amount of 

328
00:17:48,460 --> 00:17:51,860
circulating credit units, and 
that created inflation. 

329
00:17:52,100 --> 00:17:54,700
Well, when Vachler raised 
interest rates all the way up to

330
00:17:54,700 --> 00:17:57,860
20%, there wasn't a large debt, 
there wasn't a big government 

331
00:17:57,860 --> 00:18:01,060
deficit, and the amount of 
people who wanted to borrow went

332
00:18:01,060 --> 00:18:03,580
way down. 
And that's not the scenario that

333
00:18:03,580 --> 00:18:04,660
we see today. 
So what? 

334
00:18:04,780 --> 00:18:07,340
What's happening today where 
everybody's waiting to see? 

335
00:18:08,520 --> 00:18:11,880
Recessionary prices and even the
economy itself is slowing down, 

336
00:18:11,880 --> 00:18:14,720
but the prices keep going up. 
They call that stagflation. 

337
00:18:14,840 --> 00:18:17,360
How is this happening? 
Well, we can look back to the 

338
00:18:17,360 --> 00:18:20,720
1940s to explain this instead of
the 70s, because in the 40s we 

339
00:18:20,720 --> 00:18:23,600
had inflation as well. 
But the inflation came from 

340
00:18:23,600 --> 00:18:26,640
government spending, government 
spending. 

341
00:18:26,800 --> 00:18:29,320
That's the two. 
These are the two biggest ways 

342
00:18:30,000 --> 00:18:32,480
to increase the dollar supply 
because you know a lot of 

343
00:18:32,480 --> 00:18:37,320
people, they don't understand 
that there are actually four 

344
00:18:37,320 --> 00:18:39,270
different. 
Types of currency. 

345
00:18:39,750 --> 00:18:44,110
So of course you have Fiat cash 
currency, but the there's only 

346
00:18:44,110 --> 00:18:49,270
about $5 trillion of of cash 
that's circulating right now and

347
00:18:49,270 --> 00:18:51,630
that's as of last quarter. 
The new numbers, you know, 

348
00:18:51,630 --> 00:18:55,950
changes every quarter, but then 
you have central bank reserves 

349
00:18:56,310 --> 00:19:00,670
are another form of the dollar 
bank deposits and treasuries. 

350
00:19:01,150 --> 00:19:05,270
So Fiat bank deposits, central 
bank reserves and treasuries. 

351
00:19:05,270 --> 00:19:07,830
Those are four different types 
of dollars. 

352
00:19:08,160 --> 00:19:10,320
I bet you most millennials 
watching this podcast, when they

353
00:19:10,320 --> 00:19:13,480
think of dollar, they only think
of one thing or maybe two. 

354
00:19:13,640 --> 00:19:17,080
They think of cash or they think
of a bank deposit, but they're 

355
00:19:17,080 --> 00:19:19,440
not thinking of central bank 
reserves and they're not 

356
00:19:19,440 --> 00:19:22,800
thinking of treasuries. 
But these two are also a form of

357
00:19:22,800 --> 00:19:25,360
the dollar. 
And if anyone of those forms of 

358
00:19:25,360 --> 00:19:30,320
the dollar expands, its supply 
is expanded by government vote 

359
00:19:30,320 --> 00:19:33,880
or by bank lending. 
That right there is inflation. 

360
00:19:34,160 --> 00:19:37,160
Well, of course, as you know, 
with Bitcoin, nobody can expand 

361
00:19:37,160 --> 00:19:39,750
the supply. 
There's 21 million coins and 

362
00:19:39,750 --> 00:19:45,150
there will never be any more. 
That fact, coupled with the 

363
00:19:45,150 --> 00:19:51,030
difficulty adjustment, is what 
creates this magical synopsis, 

364
00:19:51,030 --> 00:19:54,710
this magical synchronicity 
between the laws of economics 

365
00:19:55,910 --> 00:19:58,870
and then the real world 
consequences of the actions of 

366
00:19:58,870 --> 00:20:02,630
our government and as they 
continue to increase all four of

367
00:20:02,630 --> 00:20:05,190
those forms of the dollar and 
create inflation. 

368
00:20:05,860 --> 00:20:09,860
Bitcoin is here to protect our 
value, it's savings, technology,

369
00:20:10,140 --> 00:20:13,140
and if our generation can 
understand that, then we can 

370
00:20:13,140 --> 00:20:15,220
easily opt out. 
It reminds me of that meme where

371
00:20:15,220 --> 00:20:18,700
the politician is on a plank, 
over a Cliff and all the people.

372
00:20:18,700 --> 00:20:20,340
The rest of the people are 
holding him up. 

373
00:20:20,340 --> 00:20:22,500
Yeah, yeah. 
And it's just like, hey, instead

374
00:20:22,500 --> 00:20:26,460
of saving dollars and holding 
this guy up, take your dollars 

375
00:20:26,460 --> 00:20:28,980
that you earn at work. 
Spend them at the store for what

376
00:20:28,980 --> 00:20:30,780
you need. 
But when you have something 

377
00:20:30,780 --> 00:20:32,820
leftover, you know what to do 
with it. 

378
00:20:33,090 --> 00:20:35,970
You can't save currency. 
You can save money. 

379
00:20:36,130 --> 00:20:39,130
Well, the best form of money by 
far is Bitcoin. 

380
00:20:39,370 --> 00:20:42,170
So let's just opt out 
peacefully. 

381
00:20:42,170 --> 00:20:45,850
We don't have to crush the 
Federal Reserve and fight the 

382
00:20:45,850 --> 00:20:47,410
government. 
Let them do what they're going 

383
00:20:47,410 --> 00:20:50,450
to do, because Bitcoin will 
protect you through the laws of 

384
00:20:50,450 --> 00:20:52,530
economics. 
Take your savings and saving in 

385
00:20:52,530 --> 00:20:55,530
Bitcoin. 
Don't fall for the idea that 

386
00:20:55,530 --> 00:20:59,090
higher interest rates means a 
stronger dollar. 

387
00:21:00,920 --> 00:21:03,200
If you don't mind, I can kind of
go off into a tangent on that. 

388
00:21:03,200 --> 00:21:04,840
That's one of the hot topic 
right now. 

389
00:21:05,040 --> 00:21:06,760
Yeah, yeah. 
Let's, let's take a little break

390
00:21:06,760 --> 00:21:10,800
like also what I wanted to say. 
And and I think you illustrate 

391
00:21:10,800 --> 00:21:12,160
that with that meme as well, 
right. 

392
00:21:12,160 --> 00:21:17,880
Like it's also teaching and and 
hopefully demonstrating to 

393
00:21:17,880 --> 00:21:22,640
people that you can also be more
sovereign when when you actually

394
00:21:22,640 --> 00:21:25,560
have Bitcoin, right? 
Like the rules of Bitcoin, the 

395
00:21:25,640 --> 00:21:28,200
the rules of the Bitcoin 
protocol. 

396
00:21:28,950 --> 00:21:31,710
As I like to say, you know, 
they're open and transparent, 

397
00:21:31,710 --> 00:21:35,270
like the whole monetary policy 
is transparent. 

398
00:21:35,270 --> 00:21:38,390
It can be audited 24/7, 365, 
right. 

399
00:21:38,390 --> 00:21:45,150
So if you understand and then 
believe that it's an asset that 

400
00:21:45,590 --> 00:21:51,350
you can hold which keeps its 
value over space and time, so 

401
00:21:51,350 --> 00:21:56,790
into the into the future that 
once you hold it, you are fully 

402
00:21:56,790 --> 00:22:02,680
sovereign like you are not. 
Dependent on whoever decides 

403
00:22:02,680 --> 00:22:06,400
whatever, right. 
Changing a policy, pushing a 

404
00:22:06,400 --> 00:22:10,360
button, printing money, you know
whatever, like you, you 

405
00:22:10,360 --> 00:22:14,840
basically opt out of that as you
mentioned and I also fully agree

406
00:22:14,840 --> 00:22:21,640
like this is not like an anti 
bank or anti dollar type of well

407
00:22:21,640 --> 00:22:23,840
some people see it like I don't 
really see it like that. 

408
00:22:23,840 --> 00:22:26,680
It's more like, OK, you have a 
system System A. 

409
00:22:27,860 --> 00:22:32,100
Which is provably not so good. 
And you have a system B which is

410
00:22:32,100 --> 00:22:38,180
provably way more superior plus 
even plus more transparent than,

411
00:22:38,380 --> 00:22:42,300
well, anything like you can list
a lot of things, right? 

412
00:22:42,740 --> 00:22:45,740
And so I think it's just a fair 
choice for people, right? 

413
00:22:45,740 --> 00:22:50,140
Like, once you know and just 
like I recorded another podcast 

414
00:22:50,140 --> 00:22:55,260
today with Mark and he also said
like once you know that this is 

415
00:22:55,260 --> 00:22:58,140
there. 
You cannot hide anymore, right? 

416
00:22:58,140 --> 00:23:01,140
Like, you have to choose, like 
once you know that this is there

417
00:23:01,140 --> 00:23:04,300
and you decide not to study it, 
totally fine. 

418
00:23:05,300 --> 00:23:08,180
But if you also decide not to 
study the other thing, you know,

419
00:23:08,180 --> 00:23:11,980
the flawed system, basically, 
yeah, Then you cannot cry when 

420
00:23:12,060 --> 00:23:13,740
when something happens there, 
right? 

421
00:23:13,740 --> 00:23:15,660
Like there is no, there's no 
free pass. 

422
00:23:15,660 --> 00:23:17,660
There's no free pass in life, 
basically. 

423
00:23:17,660 --> 00:23:19,020
Right. 
So you either. 

424
00:23:21,020 --> 00:23:22,060
Study it or not. 
Both. 

425
00:23:22,060 --> 00:23:24,780
The choice, both. 
Fine, like no judgment but but 

426
00:23:24,780 --> 00:23:28,820
there is going to be some sort 
of consequence, whatever it is 

427
00:23:28,820 --> 00:23:31,300
that you actually have to live 
with, right. 

428
00:23:31,300 --> 00:23:34,780
And I think now and also like 
one of the goals with this 

429
00:23:34,780 --> 00:23:37,660
podcast is to like show people 
like this is the other thing. 

430
00:23:38,220 --> 00:23:42,140
This is the other thing as a 
real like antagonist to to the 

431
00:23:42,140 --> 00:23:44,540
thing that already exists that 
you probably also don't 

432
00:23:44,540 --> 00:23:46,460
understand, right. 
Like that's that's one of my 

433
00:23:46,460 --> 00:23:48,740
motivations. 
Basically, like, I was 

434
00:23:48,740 --> 00:23:51,900
participating in the system 
until I understood that the, you

435
00:23:51,900 --> 00:23:53,340
know, money in the bank is not 
yours. 

436
00:23:53,380 --> 00:23:57,060
And that was for me to try to 
think like, OK, I'm 

437
00:23:57,060 --> 00:23:59,180
participating in a system that I
have no clue about. 

438
00:23:59,220 --> 00:24:01,300
I should do some research, 
right? 

439
00:24:01,300 --> 00:24:03,460
Well, that was kind of like one 
of the things that led me to 

440
00:24:03,460 --> 00:24:06,740
Bitcoin. 
So yeah, that actually leads 

441
00:24:06,740 --> 00:24:11,180
perfectly into part of my, the 
last part of my thesis, which is

442
00:24:11,180 --> 00:24:14,460
Bitcoin is the most pristine 
form of collateral in the world.

443
00:24:15,130 --> 00:24:17,970
Because you know where that 
saying comes, be your own bank. 

444
00:24:18,530 --> 00:24:22,250
Well, what like you said and you
what you, when you were talking,

445
00:24:22,250 --> 00:24:25,010
you said they can't change 
anything about it. 

446
00:24:25,290 --> 00:24:28,050
Well, what's the one thing that 
people do these days? 

447
00:24:28,130 --> 00:24:30,770
They just sit around waiting for
the Federal Reserve Board of 

448
00:24:30,770 --> 00:24:34,050
Governors to decide the price of
money, right, To decide what the

449
00:24:34,050 --> 00:24:36,930
interest rate is going to be. 
It's not a free market process. 

450
00:24:37,170 --> 00:24:40,930
It's a stated rate. 
Well, Bitcoin as the reserve 

451
00:24:40,930 --> 00:24:45,610
asset of the Internet economy is
the only money in the world 

452
00:24:45,850 --> 00:24:48,850
where the economy doesn't try to
name the price of their money. 

453
00:24:49,050 --> 00:24:52,330
Every other economy in the world
has a sense just is that tries 

454
00:24:52,330 --> 00:24:54,530
to tell you what the price of 
that money is. 

455
00:24:54,890 --> 00:24:59,130
Bitcoin is a free market price 
of money and that that is where 

456
00:24:59,130 --> 00:25:01,330
the rest of the marketplace is 
missing this right now. 

457
00:25:02,490 --> 00:25:05,170
When I say that the future of 
finance is going to be built 

458
00:25:05,170 --> 00:25:09,770
around Bitcoin and the Bitcoin 
equity, the value of Bitcoin, 

459
00:25:10,450 --> 00:25:14,290
what I mean is that true free 
market principles are going to 

460
00:25:14,370 --> 00:25:19,650
out compete and outlast these 
fixed fake market principles 

461
00:25:19,650 --> 00:25:22,530
that we see in the Fiat system 
where they can state rates. 

462
00:25:22,530 --> 00:25:27,930
I mean it's this simple the the 
interest rate should be based on

463
00:25:27,930 --> 00:25:30,450
the supply of money and the 
demand for loans. 

464
00:25:30,690 --> 00:25:34,610
It's funny because maybe like 
two years ago you could go into 

465
00:25:34,610 --> 00:25:38,820
Defy and you could, you know, 
wrap your Bitcoin and you could 

466
00:25:38,820 --> 00:25:41,100
start earning on your Bitcoin 
and people are like, wow, this 

467
00:25:41,100 --> 00:25:44,020
is fantastic because in the 
traditional system we were still

468
00:25:44,020 --> 00:25:47,500
at 0 interest rate print the oh,
so there's like 0 interest rate 

469
00:25:47,500 --> 00:25:50,540
policy in the traditional system
that I can't earn anything 

470
00:25:50,540 --> 00:25:51,780
there. 
You know, my bank has given me 

471
00:25:51,780 --> 00:25:57,580
0.01%, but you know, if I buy 
some Bitcoin and I wrap it and I

472
00:25:57,580 --> 00:25:59,700
put it in one of these 
protocols, I can start to earn 

473
00:25:59,700 --> 00:26:02,740
345 percent. 
And that was like 

474
00:26:02,740 --> 00:26:05,660
groundbreaking. 
And now here we are during a 

475
00:26:05,660 --> 00:26:10,480
bear market and the traditional 
interest rates are higher than 

476
00:26:10,480 --> 00:26:13,640
the defy interest rates. 
So it's like well now you can go

477
00:26:13,640 --> 00:26:16,160
borrow against your Bitcoin for 
two or three percent. 

478
00:26:16,320 --> 00:26:19,040
Two years ago it was costing you
8 to 12%. 

479
00:26:19,480 --> 00:26:22,360
So you know the fact that 
interest rates are allowed to 

480
00:26:22,360 --> 00:26:26,000
move based on the supply of 
money and the demand on loans 

481
00:26:26,600 --> 00:26:33,980
that free market mechanism will 
out compete and out perform 

482
00:26:34,260 --> 00:26:38,420
versus the the Fiat system where
they the the governor of the 

483
00:26:38,420 --> 00:26:42,060
Central bank is saying this is 
what the rate should be based on

484
00:26:42,860 --> 00:26:45,980
our analysis and our data. 
And you know, forget about going

485
00:26:45,980 --> 00:26:50,020
into whether the data they have 
is correct or not, but it's not 

486
00:26:50,020 --> 00:26:52,100
the marketplace signal that's 
more. 

487
00:26:52,140 --> 00:26:55,140
About early more the principle 
right like it's the principle 

488
00:26:55,860 --> 00:26:58,580
and I love a Bitcoin is written 
with memes obviously, but this 

489
00:26:58,580 --> 00:27:00,060
is one of them. 
It's like follow. 

490
00:27:00,620 --> 00:27:02,620
Do you want to follow the rulers
or do you want to follow the 

491
00:27:02,620 --> 00:27:04,180
rules? 
That's right. 

492
00:27:04,380 --> 00:27:08,820
And Bitcoin is the rules in this
example, right? 

493
00:27:08,820 --> 00:27:11,020
It's just a thing. 
It's just there. 

494
00:27:11,820 --> 00:27:17,900
And anyone who wishes to 
participate can decide on the 

495
00:27:17,900 --> 00:27:22,100
price of it or the value of it. 
But whatever you think of it, it

496
00:27:22,100 --> 00:27:25,940
just keeps going, right? 
And so I think that's. 

497
00:27:26,980 --> 00:27:28,340
And I find that interesting 
actually. 

498
00:27:28,340 --> 00:27:33,940
Like, you can go into a deep end
and get research or this was 

499
00:27:33,940 --> 00:27:36,620
like this in 1990 or 60 or 
whatever. 

500
00:27:38,500 --> 00:27:42,660
But I love that Bitcoin is so 
beautiful in a sense that you 

501
00:27:42,660 --> 00:27:45,420
can really drill it down to 
certain types of principles, 

502
00:27:45,460 --> 00:27:51,220
like System A does things in 
this way, which. 

503
00:27:51,790 --> 00:27:53,230
OK. 
It is there, but it doesn't, 

504
00:27:53,470 --> 00:27:55,590
it's not really logical. 
And then you see like how 

505
00:27:55,590 --> 00:27:59,510
Bitcoin works, like for example,
it's auditable to like I said 

506
00:27:59,510 --> 00:28:03,630
24/7, 365, the Federal Reserve 
or any central bank is not. 

507
00:28:04,190 --> 00:28:09,070
So just that, right, Like like 
just that I would love to like 

508
00:28:09,070 --> 00:28:11,510
share more, right. 
Because I think if you're like 

509
00:28:12,270 --> 00:28:15,830
an interested, somewhat 
intelligent, rational person 

510
00:28:15,830 --> 00:28:17,670
that that should not make sense,
right? 

511
00:28:17,670 --> 00:28:21,390
Like. 
If you and and I say this a lot,

512
00:28:21,390 --> 00:28:24,870
but if you have to say you're 
transparent or honest or fair 

513
00:28:25,150 --> 00:28:27,110
and you cannot show it, then 
you're not right. 

514
00:28:27,110 --> 00:28:28,910
Like also that's, that's another
one, right. 

515
00:28:28,910 --> 00:28:31,710
It's just basic principles in 
some sense. 

516
00:28:31,710 --> 00:28:34,790
But I find it very logical. 
But well, I don't know how your 

517
00:28:34,790 --> 00:28:36,910
orange Pilling goes, but 
sometimes it's actually 

518
00:28:36,910 --> 00:28:39,470
difficult to, you know, trigger 
people in that way. 

519
00:28:39,710 --> 00:28:42,270
But let's go back like I still 
wanted to ask my first question.

520
00:28:42,270 --> 00:28:44,710
But it's funny like how we how 
we not at all we're all good 

521
00:28:44,710 --> 00:28:46,790
like this is funny. 
No. 

522
00:28:46,790 --> 00:28:48,870
But as you mentioned, you're a 
millennial as well. 

523
00:28:49,850 --> 00:28:52,250
And I think it's fun like you're
you're obviously really into 

524
00:28:52,250 --> 00:28:54,170
this. 
You know you share a lot about 

525
00:28:54,170 --> 00:28:59,570
it like but why even for me and 
and it's a lot, right. 

526
00:28:59,570 --> 00:29:02,650
Like why, why is financial 
literacy so important especially

527
00:29:02,650 --> 00:29:05,130
for millennials, right. 
Like for our, our generation 

528
00:29:05,130 --> 00:29:08,610
like you know you barely 
scratched the surface in what 

529
00:29:08,610 --> 00:29:11,890
you just mentioned, right. 
And and I think that's the point

530
00:29:12,090 --> 00:29:14,570
of this question like why? 
Why is it so important? 

531
00:29:14,570 --> 00:29:16,930
Is it? 
Is it because it's so opaque or?

532
00:29:17,640 --> 00:29:19,640
You don't learn about it, like 
what's your, what are your 

533
00:29:19,640 --> 00:29:22,680
faults there? 
Yeah, I think you know what 

534
00:29:22,680 --> 00:29:26,840
comes to mind is a Bible verse 
that where it says my people are

535
00:29:26,840 --> 00:29:28,600
destroyed for a lack of 
knowledge. 

536
00:29:29,040 --> 00:29:33,280
And the translation there really
is because we don't understand 

537
00:29:33,280 --> 00:29:35,880
these things and because we're 
not being taught these things. 

538
00:29:37,120 --> 00:29:40,080
Other people who understand 
these things and are in control 

539
00:29:40,080 --> 00:29:44,320
and in power are using it 
against us to destroy us because

540
00:29:44,320 --> 00:29:49,260
inflation really is taxation 
without representation, right? 

541
00:29:49,260 --> 00:29:52,700
I mean, if you think about this,
you know, in other words, why do

542
00:29:52,700 --> 00:29:55,420
we pay taxes? 
Well, the the reason that we pay

543
00:29:55,420 --> 00:29:57,300
taxes. 
Without representation, you mean

544
00:29:57,300 --> 00:29:59,900
this is property tax or this is.
Yeah. 

545
00:29:59,980 --> 00:30:02,820
And like any type of tax, why do
we pay taxes to the government? 

546
00:30:03,060 --> 00:30:05,260
And the whole idea is that, you 
know, if you think of the 

547
00:30:05,260 --> 00:30:09,100
government in, in terms of a 
corporation, which it really is,

548
00:30:09,500 --> 00:30:13,530
then you you need money, right? 
Just like a business, If a 

549
00:30:13,530 --> 00:30:16,010
business doesn't have profit, it
disappears. 

550
00:30:16,290 --> 00:30:19,450
Well, if the government doesn't 
have profit, it disappears. 

551
00:30:19,450 --> 00:30:23,210
So the entire system itself is 
based off of those tax revenues.

552
00:30:23,410 --> 00:30:26,410
So you know, we go to work and 
we get a paycheck and you get a 

553
00:30:26,410 --> 00:30:29,410
W2. 
And the government, you know, 

554
00:30:29,410 --> 00:30:32,970
they also. 
Been services W2 is pension 

555
00:30:35,810 --> 00:30:41,060
earned, income earned it so like
a salary and you pay these taxes

556
00:30:41,420 --> 00:30:43,860
to the government and the 
government is supposed to take 

557
00:30:43,860 --> 00:30:48,260
the tax and then spend it to 
survive. 

558
00:30:48,260 --> 00:30:49,780
That's where it gets its income 
from that. 

559
00:30:50,020 --> 00:30:55,260
But now we're at the point where
the rules are so twisted. 

560
00:30:55,980 --> 00:30:59,100
And the reason that it's gotten 
like that is because people in 

561
00:30:59,100 --> 00:31:02,800
my generation and even the 
generation above us, they kind 

562
00:31:02,800 --> 00:31:05,440
of ignored these things. 
These things went on autopilot. 

563
00:31:05,640 --> 00:31:09,240
And as Satoshi said, there was 
too much trust in the system. 

564
00:31:09,680 --> 00:31:13,280
And we, you know, that trust 
afforded them the opportunity to

565
00:31:13,480 --> 00:31:17,520
take advantage of people who 
didn't understand everything 

566
00:31:17,520 --> 00:31:19,080
that's going on in finance right
now. 

567
00:31:19,080 --> 00:31:21,200
And I think that you know what's
happening in it's. 

568
00:31:21,200 --> 00:31:23,840
Because it just worked, right? 
And we didn't have, well, at 

569
00:31:23,840 --> 00:31:27,320
least like at least in the 
Western countries. 

570
00:31:27,880 --> 00:31:31,000
It's just there, it worked. 
That's also why I want to focus 

571
00:31:31,000 --> 00:31:32,960
on millennials. 
Like, we grew up in the best 

572
00:31:32,960 --> 00:31:35,600
time ever. 
Like the easiest time of anyone 

573
00:31:35,600 --> 00:31:38,800
who's ever lived, basically. 
Oh, yeah, you know, like I, even

574
00:31:38,880 --> 00:31:43,520
the generation after us has it 
worse, I think, right? 

575
00:31:43,520 --> 00:31:47,680
So we we had like the most prime
childhoods growing up. 

576
00:31:48,360 --> 00:31:50,440
There was money. 
Like, no problem, nothing. 

577
00:31:50,560 --> 00:31:53,120
Yeah, I definitely think we got 
prime time because where we're 

578
00:31:53,120 --> 00:31:56,600
going from here, see, 
everybody's waiting for lower 

579
00:31:56,600 --> 00:31:59,080
prices. 
But what's going to happen is 

580
00:31:59,080 --> 00:32:00,640
the lower prices aren't going to
come. 

581
00:32:01,280 --> 00:32:04,000
And we know that because that's 
what stagflation is. 

582
00:32:04,000 --> 00:32:08,160
The definition of stagflation is
the prices are going up and the 

583
00:32:08,160 --> 00:32:10,320
economy is shrinking. 
It's going down. 

584
00:32:10,600 --> 00:32:12,760
And that's what we've been 
seeing now for multiple 

585
00:32:12,760 --> 00:32:15,120
quarters, even here in the 
United States. 

586
00:32:15,120 --> 00:32:18,200
And pretty much even though the 
United States is not a big 

587
00:32:18,200 --> 00:32:21,040
producer, the way the United 
States goes, the rest of the 

588
00:32:21,040 --> 00:32:23,800
world tends to go. 
That's why they call the dollar 

589
00:32:23,800 --> 00:32:26,280
the the cleanest dirty shirt in 
the laundry, right, Because we 

590
00:32:26,280 --> 00:32:30,340
kind of lead the way. 
Well, our economy is going down,

591
00:32:31,220 --> 00:32:35,340
yet prices are still going up. 
The problem with this is that we

592
00:32:35,340 --> 00:32:38,980
come back to those natural laws 
of economics and the natural 

593
00:32:38,980 --> 00:32:42,100
laws of economics. 
Yeah, when the supply goes down,

594
00:32:42,100 --> 00:32:44,740
when the economy goes down, the 
prices should come down. 

595
00:32:45,060 --> 00:32:48,020
And that's a good thing because 
eventually the prices come down 

596
00:32:48,020 --> 00:32:51,700
far enough to where people can 
start to participate again. 

597
00:32:51,700 --> 00:32:53,620
Yeah. 
Oh, I couldn't go to dinner, but

598
00:32:53,620 --> 00:32:56,180
it for three people and pay 
$90.00. 

599
00:32:56,540 --> 00:32:59,740
But now I can go to dinner for 
three people and pay $50.00. 

600
00:32:59,740 --> 00:33:01,220
I can afford that. 
Let's go to dinner. 

601
00:33:01,540 --> 00:33:03,820
Right. 
So prices come down it and it 

602
00:33:04,220 --> 00:33:07,340
creates a natural floor, a 
natural place for the economy to

603
00:33:07,340 --> 00:33:11,260
rebound and restart. 
But now, as everybody is sitting

604
00:33:11,260 --> 00:33:14,020
on the sidelines in cash, by the
way, I've never seen it like 

605
00:33:14,020 --> 00:33:20,540
this $5.6 trillion in the United
States alone, sitting on the 

606
00:33:20,540 --> 00:33:24,940
sidelines in Treasuries, 
nonetheless waiting for lower 

607
00:33:24,940 --> 00:33:26,970
prices. 
Well, as someone has been in 

608
00:33:26,970 --> 00:33:30,570
Bitcoin for nine years, the 
psychology of the market cycle, 

609
00:33:30,650 --> 00:33:32,930
I can testify to its truth. 
Right? 

610
00:33:33,050 --> 00:33:36,370
When I go to the grocery store 
and I'm checking out and the guy

611
00:33:36,370 --> 00:33:38,410
asked me, hey, have you heard of
Bitcoin before? 

612
00:33:38,770 --> 00:33:42,050
I'm like, oh man, you know, the 
guy who's bagging my groceries 

613
00:33:42,050 --> 00:33:44,290
is asking me about Bitcoin. 
I should probably sell some 

614
00:33:44,290 --> 00:33:45,690
Bitcoin here, right? 
Because we're. 

615
00:33:45,770 --> 00:33:47,210
You got to be out of top or 
something. 

616
00:33:47,210 --> 00:33:47,730
Yeah. 
Yeah. 

617
00:33:48,570 --> 00:33:50,570
And you know, I. 
But when I go to the bear market

618
00:33:50,570 --> 00:33:53,010
and I wear like a Bitcoin shirt,
I get dirty looks. 

619
00:33:53,310 --> 00:33:55,310
I'm like, all right, this means 
I should be buying more Bitcoin 

620
00:33:55,310 --> 00:33:57,430
because people think I'm stupid 
for wearing a Bitcoin shirt. 

621
00:33:57,430 --> 00:34:01,150
You know, it's the opposite of 
what the mainstream sentiment 

622
00:34:01,470 --> 00:34:05,550
typically turns out to be. 
The reward from the market, you 

623
00:34:05,550 --> 00:34:08,989
know, In other words, the 
marketplace rewards the few and 

624
00:34:08,989 --> 00:34:11,989
punishes the many. 
Well, right now the few are 

625
00:34:11,989 --> 00:34:15,310
holding Bitcoin and the many are
holding dollars. 

626
00:34:15,510 --> 00:34:20,110
And they the scary part is that 
these people are holding dollars

627
00:34:20,350 --> 00:34:24,969
not because they think that it's
going to benefit them for lower 

628
00:34:24,969 --> 00:34:27,690
prices in the future. 
They think at some point in time

629
00:34:27,690 --> 00:34:29,969
in the future it's going to be 
like March 2020. 

630
00:34:30,290 --> 00:34:33,449
Prices are going to drop down 
really quick, really low. 

631
00:34:33,650 --> 00:34:36,530
And if you have money on the 
sidelines and you're not afraid 

632
00:34:36,570 --> 00:34:39,210
you're going to get all these 
good deals and then just a 

633
00:34:39,210 --> 00:34:41,730
couple months later prices are 
going to be right back up to 

634
00:34:41,730 --> 00:34:46,889
where they were and even beyond.
I mean that that concept, that 

635
00:34:46,929 --> 00:34:54,010
that ideology, that strategy is 
actually has the power over $5.6

636
00:34:54,010 --> 00:34:58,170
trillion. 
That's that's an amazing concept

637
00:34:58,170 --> 00:35:01,610
to think about because even if 
only a very small percentage of 

638
00:35:01,610 --> 00:35:06,850
that sideline cash enters into 
the Bitcoin marketplace, you're 

639
00:35:06,850 --> 00:35:09,250
going to see, you know, I think 
that the Bank of America 

640
00:35:09,250 --> 00:35:12,770
multiple is like for every $1.00
that goes into Bitcoin, the 

641
00:35:12,770 --> 00:35:17,570
price can go up $118, right? 
So if you have hundreds of 

642
00:35:17,570 --> 00:35:21,900
billions of dollars coming into 
Bitcoin, then the the amount of 

643
00:35:21,980 --> 00:35:24,620
price movement you can get at 
one point in time because the 

644
00:35:24,620 --> 00:35:30,180
supply is so limited is just 
it's almost unfathomable to 

645
00:35:30,180 --> 00:35:31,900
understand. 
But we're going to continue to 

646
00:35:31,900 --> 00:35:33,140
see that. 
We're going to continue to see 

647
00:35:33,140 --> 00:35:35,900
it from companies like Micro 
Strategy with Michael Saylor. 

648
00:35:35,940 --> 00:35:39,780
I don't even know why BlackRock 
is who would buy an ETF? 

649
00:35:40,180 --> 00:35:44,060
Why would anybody buy a Bitcoin 
ETF when they can buy a company 

650
00:35:44,060 --> 00:35:46,900
like Micro Strategy? 
You get cash flow from the 

651
00:35:46,900 --> 00:35:51,000
company, you get no management 
fee, you'll get dividends. 

652
00:35:52,200 --> 00:35:56,120
It's like micro strategy is the 
best version of an ETF that 

653
00:35:56,120 --> 00:35:58,480
there can be. 
So the fact that BlackRock is 

654
00:35:58,480 --> 00:36:00,440
getting in there, all these 
other guys are getting in there,

655
00:36:00,440 --> 00:36:03,240
it just shows you that people 
are finally starting to wake up 

656
00:36:03,240 --> 00:36:04,600
to this. 
People are finally starting to 

657
00:36:04,600 --> 00:36:07,960
understand, you know, what if I 
got 5.6 trillion on the 

658
00:36:07,960 --> 00:36:11,080
sidelines? 
It's OK if I have 100 billion in

659
00:36:11,080 --> 00:36:13,000
Bitcoin because of where this is
going. 

660
00:36:13,280 --> 00:36:16,400
And that the recognition of that
by the biggest players in the 

661
00:36:16,400 --> 00:36:19,600
industry is a result of demand, 
right? 

662
00:36:19,600 --> 00:36:21,600
Because you don't launch an ETF 
to not profit. 

663
00:36:21,600 --> 00:36:24,920
You launch the ETF to profit, 
and you're only going to profit 

664
00:36:24,920 --> 00:36:27,240
if there's demand. 
So we're seeing the demand. 

665
00:36:27,440 --> 00:36:31,360
The mathematics are sound of 
commoditized energy in the form 

666
00:36:31,360 --> 00:36:33,480
of money. 
The value is backed and it's 

667
00:36:33,480 --> 00:36:36,120
protected. 
This is the answer for 

668
00:36:36,120 --> 00:36:39,480
millennials out there who are 
asking how do I save, How am I 

669
00:36:39,480 --> 00:36:40,920
going to buy a house in the 
future? 

670
00:36:41,320 --> 00:36:44,760
How, you know, how am I going 
to, how are my wages and my 

671
00:36:44,760 --> 00:36:48,560
savings going to outpace prices?
The answer is Bitcoin. 

672
00:36:48,990 --> 00:36:50,390
That's your that's your 
solution. 

673
00:36:50,390 --> 00:36:52,750
The solution to the problem is 
Bitcoin. 

674
00:36:52,750 --> 00:36:55,270
And that's what gets me so 
excited because you know the 

675
00:36:55,270 --> 00:36:58,950
value proposition of bread is, 
well, you're going to be able to

676
00:36:58,950 --> 00:37:00,670
eat well. 
Eating is important, but 

677
00:37:00,670 --> 00:37:02,910
sometimes you know bread, you 
don't want bread, you want 

678
00:37:02,910 --> 00:37:04,630
something else. 
And the value proposition of 

679
00:37:04,630 --> 00:37:07,830
gold is, well, we can, we can 
store your value, we can protect

680
00:37:07,830 --> 00:37:10,550
your value. 
You know, 100 years ago, 1000 

681
00:37:10,550 --> 00:37:13,430
years ago, an ounce of gold 
would buy you one really nice 

682
00:37:13,430 --> 00:37:15,430
suit. 
Well, even today, one ounce of 

683
00:37:15,430 --> 00:37:18,330
gold is going to buy you one 
really nice suit so you can 

684
00:37:18,330 --> 00:37:21,250
store your value. 
But with Bitcoin, you're not 

685
00:37:21,250 --> 00:37:24,250
just getting the store of value 
characteristics, you're getting 

686
00:37:24,250 --> 00:37:27,970
the, the, the exponential growth
from being at the bottom of the 

687
00:37:28,010 --> 00:37:31,130
S curve to the top of the gold 
is already at the top of its S 

688
00:37:31,130 --> 00:37:32,650
curve. 
So it's going to store that 

689
00:37:32,650 --> 00:37:34,890
value perfectly. 
Bitcoins at the bottom. 

690
00:37:35,050 --> 00:37:37,770
So it's not just about storing 
value through the natural laws 

691
00:37:37,770 --> 00:37:41,850
of economics, it's about growing
your value and growing your 

692
00:37:41,850 --> 00:37:45,250
wealth and purchasing power 
because of where it is in its 

693
00:37:45,250 --> 00:37:49,000
process of adoption. 
So we are not only did we get 

694
00:37:49,000 --> 00:37:52,040
the best lifestyle growing up as
millennials, but we have this 

695
00:37:52,160 --> 00:37:56,440
very unique opportunity in time 
that when people look back on 

696
00:37:56,440 --> 00:37:59,360
it, they say, Oh my gosh, could 
you imagine if we were alive 

697
00:37:59,360 --> 00:38:02,800
when Bitcoin was 30,000? 
So would you even say that that 

698
00:38:02,800 --> 00:38:06,920
that millennials are actually 
the perfect adopters of Bitcoin?

699
00:38:07,200 --> 00:38:09,320
Yeah, absolutely. 
We are. 

700
00:38:10,550 --> 00:38:12,950
Legends will be made. 
You know, I joke with my wife 

701
00:38:12,950 --> 00:38:16,270
all the time that in our Citadel
there'll be a picture of us next

702
00:38:16,270 --> 00:38:18,670
to each other, like that farmer 
and his wife, right. 

703
00:38:18,670 --> 00:38:20,590
We're like, yeah. 
Oh, Grandpa CJ. 

704
00:38:20,630 --> 00:38:23,230
Man, he was buying bitcoins back
when they were $200. 

705
00:38:23,230 --> 00:38:26,230
Yeah, the like that meme. 
You know what did you do when 

706
00:38:26,350 --> 00:38:28,790
BlackRock and ETF I bought? 
I bought before them all. 

707
00:38:28,790 --> 00:38:30,110
Ledge effing legend. 
Yeah. 

708
00:38:30,590 --> 00:38:31,310
Yeah, yeah. 
So. 

709
00:38:31,310 --> 00:38:34,830
Oh man, I love how much you love
this. 

710
00:38:34,910 --> 00:38:37,270
But I also realized that, you 
know, it's a lot. 

711
00:38:37,270 --> 00:38:39,750
So I'm trying to think like I 
wrote down some questions for 

712
00:38:39,750 --> 00:38:45,070
you. 
Also, I think if I ask you, can 

713
00:38:45,070 --> 00:38:49,230
you explain the concept of money
to me like I'm five, maybe 

714
00:38:49,230 --> 00:38:54,230
that's too much, but like what 
is the what is like value, what 

715
00:38:54,230 --> 00:39:01,150
is money and what is currency? 
Maybe that's even a bigger 

716
00:39:01,150 --> 00:39:04,350
question. 
I'm so bad at this because I 

717
00:39:04,350 --> 00:39:07,680
just go off on tangents, but the
the core? 

718
00:39:07,760 --> 00:39:08,760
Stereo. 
I'll steer you. 

719
00:39:08,840 --> 00:39:11,280
Yeah. 
The core concept of money versus

720
00:39:11,280 --> 00:39:16,000
currency is that money is a 
store of value and and currency 

721
00:39:16,000 --> 00:39:19,000
is is not a store of value. 
And the reason is it goes back 

722
00:39:19,000 --> 00:39:22,320
to what you originally said. 
And store value is I can versus 

723
00:39:22,320 --> 00:39:23,680
rulers. 
I'm sorry. 

724
00:39:23,680 --> 00:39:27,280
Good, no? 
No, but like store value is when

725
00:39:27,280 --> 00:39:32,480
I put in value for a job or a 
venture, someone pays me value 

726
00:39:32,480 --> 00:39:37,420
in money that they also earned. 
By giving value right? 

727
00:39:37,420 --> 00:39:39,580
That's the concept. 
So when you think of it in terms

728
00:39:39,580 --> 00:39:42,900
of time and energy, that might 
even be a better idea because 

729
00:39:42,900 --> 00:39:45,580
let's say you're you're going to
work and you're working a 40 

730
00:39:45,580 --> 00:39:48,420
hour workweek. 
Well, a lot of people understand

731
00:39:48,420 --> 00:39:50,660
that. 
Wait a second, I'm working 40 

732
00:39:50,660 --> 00:39:55,620
hours, but after I account for 
taxes, it's like I only worked 

733
00:39:55,620 --> 00:39:59,540
30 hours, man, that's, you know,
that's not fair, right? 

734
00:39:59,540 --> 00:40:00,820
Because everybody thinks about 
that. 

735
00:40:00,820 --> 00:40:02,980
Everybody understands that, 
especially if you're a paycheck 

736
00:40:02,980 --> 00:40:05,120
to paycheck. 
You know, I remember when I 

737
00:40:05,120 --> 00:40:07,200
first came out of school, I was 
paycheck to paycheck and I was 

738
00:40:07,200 --> 00:40:10,040
thinking, man, I'm not buying 
that watch. 

739
00:40:10,040 --> 00:40:12,840
That watch is is 3 days worth of
work. 

740
00:40:12,880 --> 00:40:15,240
So hell no, I'm not buying that 
watch. 

741
00:40:15,440 --> 00:40:16,720
Right? 
And you and you thinking you 

742
00:40:16,720 --> 00:40:19,520
think of things in terms of 
hours, like how many hours do I 

743
00:40:19,520 --> 00:40:23,080
have to work to earn this? 
Well, if you think of money and 

744
00:40:23,080 --> 00:40:27,860
currency the same way as in time
and energy, well, you're you're 

745
00:40:27,860 --> 00:40:31,500
doing the 40 hour workweek after
taxes, you're down to 32 hours. 

746
00:40:31,700 --> 00:40:35,780
Well, if you keep the value of 
your 32 hours of time and energy

747
00:40:35,780 --> 00:40:38,420
and currency, it's going to 
slowly leak. 

748
00:40:38,420 --> 00:40:41,140
It's like you're keeping it in a
bag that has a hole in it. 

749
00:40:41,380 --> 00:40:43,980
Which is Dollar, euro, etc, 
right? 

750
00:40:43,980 --> 00:40:47,220
Any of those, any paper currency
that's issued by a government 

751
00:40:47,540 --> 00:40:51,300
and backed by the tax receipts 
that the government receives, 

752
00:40:51,790 --> 00:40:56,470
that kind of currency is is 
being abused because its supply 

753
00:40:56,470 --> 00:41:00,430
is being continuously expanded 
and the expansion of that supply

754
00:41:00,430 --> 00:41:03,630
and currency see money can't, 
you can't expand. 

755
00:41:03,790 --> 00:41:07,270
If you want to expand the amount
of gold, you have to go spend 

756
00:41:07,510 --> 00:41:09,510
time and energy to pull it out 
of the ground. 

757
00:41:09,710 --> 00:41:13,150
So that protects the amount of 
gold that can be pulled out of 

758
00:41:13,150 --> 00:41:14,350
ground. 
That protects the amount of 

759
00:41:14,350 --> 00:41:15,910
supply that can come to the 
market. 

760
00:41:15,990 --> 00:41:18,710
With Bitcoin, it's an absolute 
finite supply. 

761
00:41:18,950 --> 00:41:21,980
So there you can't just pull out
more because you want you want 

762
00:41:21,980 --> 00:41:24,380
to or you spend more money. 
And then if you spend more money

763
00:41:24,380 --> 00:41:27,020
and you get the hash rate, then 
the difficulty adjustment kicks 

764
00:41:27,020 --> 00:41:28,980
in. 
And two weeks after you invested

765
00:41:28,980 --> 00:41:31,820
all that money to produce more 
of it, now you're right back at 

766
00:41:31,820 --> 00:41:35,020
a neutral level, so bit. 
Basically also what you say is 

767
00:41:35,020 --> 00:41:37,900
that money and currency got 
conflated. 

768
00:41:38,620 --> 00:41:39,700
Yeah. 
Oh yeah, absolutely. 

769
00:41:39,700 --> 00:41:42,660
People think they're using 
money, but they're really using 

770
00:41:42,660 --> 00:41:47,610
currency. 
But this since 1971, we have 

771
00:41:47,610 --> 00:41:51,690
been in a currency experiment 
because up into that time, the 

772
00:41:51,690 --> 00:41:55,490
dollar was redeemable for gold. 
So it was a commodity money. 

773
00:41:55,490 --> 00:41:58,890
It wasn't a paper currency. 
Yeah. 

774
00:41:58,890 --> 00:42:01,890
For the last 50 something years,
we've been in a paper currency 

775
00:42:01,890 --> 00:42:05,730
experiment and that experiment. 
Is that also the difference? 

776
00:42:06,010 --> 00:42:10,810
Is money backed by something and
currency is I want to say. 

777
00:42:11,630 --> 00:42:15,550
Conceptualized or created in a 
sense is is that more like a 

778
00:42:15,550 --> 00:42:18,390
paper? 
Yeah, so without going like a. 

779
00:42:18,430 --> 00:42:23,110
Paper concept instead of 
actually representing something 

780
00:42:23,590 --> 00:42:25,830
of value. 
Yeah. 

781
00:42:25,830 --> 00:42:30,430
I think the the best and easiest
way to think about it is paper 

782
00:42:30,430 --> 00:42:34,950
currency is backed by taxes 
because that's. 

783
00:42:35,030 --> 00:42:37,500
That's really love the 
government, the income of the 

784
00:42:37,500 --> 00:42:39,700
government. 
So the fact that the government 

785
00:42:39,700 --> 00:42:45,740
is legally allowed to tax its 
people, that is what backs paper

786
00:42:45,740 --> 00:42:49,700
currency because ultimately 
paper currency, just like that, 

787
00:42:49,740 --> 00:42:53,620
that commodity, paper money, it 
derived its value from the 

788
00:42:53,660 --> 00:42:57,780
underlying asset which was gold.
Well, the underlying asset here 

789
00:42:57,780 --> 00:42:59,940
is government treasury. 
It's government debt. 

790
00:43:00,260 --> 00:43:03,620
So to see it on the banking 
balance sheet, it's a the asset.

791
00:43:03,620 --> 00:43:08,900
Is government debt a treasury? 
And then the liability is the 

792
00:43:08,900 --> 00:43:11,420
actual currency. 
So the currency derives its 

793
00:43:11,420 --> 00:43:16,500
value from the treasury, but the
treasury derives its value from 

794
00:43:16,820 --> 00:43:19,980
tax receipts. 
So the revenue of the government

795
00:43:19,980 --> 00:43:22,420
is really what backs the paper 
currency. 

796
00:43:22,660 --> 00:43:25,300
And that should be alarming 
people because as the economy is

797
00:43:25,300 --> 00:43:29,060
slowing down, the revenue of the
government is going to go down. 

798
00:43:29,260 --> 00:43:32,740
But at the same time, most 
governments in the entire world,

799
00:43:32,740 --> 00:43:35,380
they aren't slowing down the 
expansion of their currency 

800
00:43:35,380 --> 00:43:38,200
supply, they're speeding up the 
expansion of their currency 

801
00:43:38,200 --> 00:43:41,680
supply at the same time that 
their tax revenue is going down.

802
00:43:41,680 --> 00:43:46,960
So on a personal level, imagine 
you were making $50,000 a year 

803
00:43:47,320 --> 00:43:50,520
and now your boss comes to you 
and says, listen, I'm going to 

804
00:43:50,520 --> 00:43:53,200
have to let you go and you go 
please, I'll, I'll take a pay 

805
00:43:53,200 --> 00:43:54,280
cut. 
But I gotta stay here. 

806
00:43:54,280 --> 00:43:56,000
I love this job. 
I don't want to go elsewhere. 

807
00:43:56,000 --> 00:43:57,280
I know I'm making good money 
here. 

808
00:43:57,560 --> 00:44:01,000
Even if you bring it down to 
$40,000, I'll stay here for you.

809
00:44:01,600 --> 00:44:05,720
Well, taking that pay cut means 
that you're going to make 

810
00:44:05,720 --> 00:44:07,680
changes in your lifestyle 
because you're not going to be 

811
00:44:07,680 --> 00:44:09,040
able to afford some things or 
another. 

812
00:44:09,360 --> 00:44:12,920
Well, the government is making 
that decision for you and it's 

813
00:44:13,040 --> 00:44:16,040
and it's done through inflation.
So as they continue to explain, 

814
00:44:16,120 --> 00:44:19,640
expand that currency supply and 
you continue to trade your time 

815
00:44:19,640 --> 00:44:23,320
and energy, they actually dilute
your time and energy. 

816
00:44:23,440 --> 00:44:27,320
They take away the value of your
time and energy through issuing 

817
00:44:27,320 --> 00:44:29,920
more and more treasuries. 
And as they issue more and more 

818
00:44:29,920 --> 00:44:33,400
treasuries, that's what really 
creates the problem of inflation

819
00:44:33,800 --> 00:44:36,680
and now they're doing it at a 
higher interest rate. 

820
00:44:37,440 --> 00:44:41,880
So and is the simple is the 
simple illustration perhaps? 

821
00:44:41,960 --> 00:44:47,520
Let's say there's 1000 units of 
money and I own 10 and tomorrow 

822
00:44:47,520 --> 00:44:51,720
the government decides there's 
going to be 2000 amounts of 

823
00:44:51,720 --> 00:44:55,360
money units of money. 
I still have 10 which means. 

824
00:44:55,790 --> 00:45:00,550
My share of the total units of 
money became less, right, 

825
00:45:00,550 --> 00:45:05,270
Percentage wise, absolutely. 
So that devalues, that's what I 

826
00:45:05,270 --> 00:45:07,390
have basically. 
Absolutely. 

827
00:45:07,590 --> 00:45:12,470
But in order, let's say for a 
store store to keep up with 

828
00:45:12,470 --> 00:45:18,190
that, they will up the units 
that make the price for a 

829
00:45:18,190 --> 00:45:22,350
certain thing. 
Let's stick with bread again, 

830
00:45:22,710 --> 00:45:26,540
right? 
So they up the number, the price

831
00:45:26,540 --> 00:45:29,220
basically, which is the number 
of units you have to pay for the

832
00:45:29,220 --> 00:45:32,260
bread, right. 
But that will account for a 

833
00:45:32,260 --> 00:45:35,620
bigger share of my share, of my 
10, right. 

834
00:45:35,620 --> 00:45:40,860
So because there's more money, 
my more units, my units are 

835
00:45:40,860 --> 00:45:46,020
devalued in a sense. 
But the value of a bread, just 

836
00:45:46,020 --> 00:45:48,940
the bread is the same, but the 
price of it will go up. 

837
00:45:49,900 --> 00:45:53,220
Yeah, because there is more 
units of the money, which makes 

838
00:45:53,220 --> 00:45:56,830
me. 
Uh, it's impacts me in a way 

839
00:45:56,830 --> 00:45:59,270
that I can buy less bread, let's
keep it with bread. 

840
00:45:59,270 --> 00:46:02,150
But like I can buy less, right? 
Like that's basically what 

841
00:46:02,150 --> 00:46:05,030
happens. 
And and if somebody got lost in 

842
00:46:05,030 --> 00:46:08,750
that, because that is a very 
great simplification of how that

843
00:46:08,750 --> 00:46:11,390
process works. 
But let me peel the onion back 

844
00:46:11,390 --> 00:46:15,510
just one more layer, because now
what's happening is the grocery 

845
00:46:15,510 --> 00:46:19,310
store is paying a higher cost to
get the bread on their shelf. 

846
00:46:19,840 --> 00:46:22,760
And that's where that it's not 
just the stores saying, oh, 

847
00:46:22,760 --> 00:46:24,880
well, we think there's more 
currency units, the whole issue.

848
00:46:24,920 --> 00:46:26,760
So we're going to raise the 
price. 

849
00:46:27,000 --> 00:46:30,400
No, the costs to the grocery 
store to get the bread on the 

850
00:46:30,400 --> 00:46:33,520
shelf increases because they 
have to pay the trucker more and

851
00:46:33,520 --> 00:46:35,080
they have to pay this and that 
it it. 

852
00:46:35,240 --> 00:46:37,480
And by the way, interest rates 
are a cost. 

853
00:46:37,960 --> 00:46:41,200
So isn't it funny that they try 
to fight inflation by raising 

854
00:46:41,200 --> 00:46:43,320
the price? 
You know, let's fight rising 

855
00:46:43,320 --> 00:46:45,480
prices by rising the price of 
money. 

856
00:46:46,080 --> 00:46:49,600
That doesn't make sense at all. 
If you want to, if you want to 

857
00:46:49,600 --> 00:46:52,680
help alleviate price pressures, 
then what you need to do is you 

858
00:46:52,680 --> 00:46:56,280
need to reduce a business's cost
because if you can reduce the 

859
00:46:56,280 --> 00:47:01,240
cost for a business, they can 
lower the price and and higher 

860
00:47:01,240 --> 00:47:03,640
interest rates are a higher cost
and the hot. 

861
00:47:03,720 --> 00:47:07,600
And as that same exact process 
you said there's more units. 

862
00:47:07,600 --> 00:47:10,200
So I own a smaller percentage of
those units. 

863
00:47:10,240 --> 00:47:12,840
And because of the increase of 
the units, the price goes up, 

864
00:47:13,040 --> 00:47:15,300
yes. 
But the additional price 

865
00:47:15,300 --> 00:47:18,860
pressure comes from the 
increased cost and that cost 

866
00:47:18,860 --> 00:47:22,100
gets pushed to the consumer, 
from the producer to the 

867
00:47:22,100 --> 00:47:23,980
consumer. 
So it's like a double whammy. 

868
00:47:24,100 --> 00:47:27,260
It's not only the devaluation of
the currency through the 

869
00:47:27,260 --> 00:47:30,660
increase of the supply, but then
it's also the positive price 

870
00:47:30,660 --> 00:47:33,300
pressures created by the 
increased cost through the 

871
00:47:33,300 --> 00:47:36,300
devaluation of the currency that
get pushed to the consumer. 

872
00:47:36,420 --> 00:47:39,550
It's a double whammy. 
And so when we talk about this, 

873
00:47:39,550 --> 00:47:41,790
right, and I I think that 
actually, you know, if you're 

874
00:47:41,790 --> 00:47:44,390
into politics or finance or 
whatever, like if your 

875
00:47:44,390 --> 00:47:47,150
geopolitical stuff, like if 
you're, if you're following that

876
00:47:47,150 --> 00:47:50,870
right, Like sometimes I talk 
also with my friends about it, 

877
00:47:50,870 --> 00:47:52,950
right? 
Like or are this conversation 

878
00:47:52,950 --> 00:47:54,270
that that we have together, 
right? 

879
00:47:54,270 --> 00:47:59,430
Like we are kind of arguing why 
we think something doesn't work,

880
00:47:59,430 --> 00:48:02,790
etc. 
But it is still happening, 

881
00:48:02,790 --> 00:48:06,230
right? 
So are we geniuses? 

882
00:48:08,190 --> 00:48:10,310
It Are there things we don't 
understand? 

883
00:48:10,550 --> 00:48:13,630
Are the people running these 
idiots, or are they geniuses? 

884
00:48:13,630 --> 00:48:16,390
And we are idiots? 
Like, do you know what I mean? 

885
00:48:16,390 --> 00:48:20,670
Like, how do you view that, 
right, Like, because, well, if 

886
00:48:20,670 --> 00:48:23,310
we can come up with this, 
there's probably even smarter 

887
00:48:23,310 --> 00:48:24,870
people that could also come up 
with this, right? 

888
00:48:24,870 --> 00:48:27,030
Like, why? 
Why is this still happening? 

889
00:48:27,590 --> 00:48:29,510
Yeah, that's that's a really 
good question. 

890
00:48:29,510 --> 00:48:34,670
And I think it's because the 
rulers are referring to a rule 

891
00:48:34,670 --> 00:48:38,580
set that is to an old game. 
It's not to this. 

892
00:48:38,660 --> 00:48:40,060
We're playing a different game, 
right? 

893
00:48:40,060 --> 00:48:42,540
It's like we were playing 
Monopoly and now we're playing 

894
00:48:42,540 --> 00:48:45,820
Clue and you're trying to play 
Clue with monopolies, rules. 

895
00:48:45,900 --> 00:48:47,620
It doesn't make sense. 
It doesn't work. 

896
00:48:47,940 --> 00:48:53,580
So in a traditional mindset that
this is what the politicians and

897
00:48:53,580 --> 00:48:56,460
the central bankers are 
thinking, I'm going to raise in 

898
00:48:56,540 --> 00:49:00,140
the rate, the interest rate. 
When I raise the interest rate, 

899
00:49:00,140 --> 00:49:03,260
that's going to attract buyers 
for my currency. 

900
00:49:03,670 --> 00:49:06,630
When people buy the currency, 
the value of the currency is 

901
00:49:06,630 --> 00:49:08,910
going to go up. 
When the value of the currency 

902
00:49:08,910 --> 00:49:11,750
goes up, prices are going to 
come down. 

903
00:49:12,470 --> 00:49:15,590
Well, look, that's. 
Because you need to ask less 

904
00:49:15,590 --> 00:49:20,110
units for the same thing, right?
Because the value of the money 

905
00:49:20,110 --> 00:49:23,190
is higher, correct. 
So that is their thought 

906
00:49:23,190 --> 00:49:26,670
process. 
But what they're ignoring is the

907
00:49:26,670 --> 00:49:29,230
fact, specifically in the United
States. 

908
00:49:29,230 --> 00:49:32,370
But this is in the EU and all 
over the world, what these guys 

909
00:49:32,370 --> 00:49:35,170
are ignoring is the mountains of
debt. 

910
00:49:35,490 --> 00:49:37,930
So in the United States, we have
33. 

911
00:49:37,930 --> 00:49:40,810
We just crossed $33 trillion 
well worth of debt. 

912
00:49:41,610 --> 00:49:47,810
Yeah, but we also have $200 
trillion of unfunded liabilities

913
00:49:47,890 --> 00:49:50,530
in Social Security, Medicare, 
Medicaid, and a few other 

914
00:49:50,530 --> 00:49:53,930
things. 
Which is on paper money that is 

915
00:49:53,930 --> 00:49:56,370
going to be paid. 
Yes. 

916
00:49:56,530 --> 00:49:59,050
We. 
For which there is no money. 

917
00:49:59,540 --> 00:50:02,540
Correct. 
So an unfunded liability is we 

918
00:50:02,540 --> 00:50:06,180
promised to make this payment. 
Yes, But we don't have the money

919
00:50:06,180 --> 00:50:08,980
to make this payment. 
So it's an unfunded liability 

920
00:50:08,980 --> 00:50:10,900
because we promise to make this 
payment. 

921
00:50:10,900 --> 00:50:13,740
We know we're going to vote to 
make this payment, but we don't 

922
00:50:13,740 --> 00:50:15,380
have the money. 
We don't have the tax money. 

923
00:50:15,380 --> 00:50:17,860
We're not collecting enough tax 
money to make this payment. 

924
00:50:18,140 --> 00:50:20,740
So we have to borrow it in order
to make the payment. 

925
00:50:21,140 --> 00:50:25,620
And what these guys aren't 
understanding is that when you 

926
00:50:25,620 --> 00:50:30,680
raise the interest rates, it 
raises the cost for all the 

927
00:50:30,680 --> 00:50:34,760
governments to borrow the money.
So if you think of it on a 

928
00:50:34,760 --> 00:50:38,480
personal level, and I gave you 
an offer and I said, hey, brand,

929
00:50:38,480 --> 00:50:41,200
you want to borrow some money, 
You want to borrow $1,000,000. 

930
00:50:41,560 --> 00:50:43,200
OK, no problem. 
I'll let you borrow that 

931
00:50:43,200 --> 00:50:46,680
$1,000,000. 
At 8%, you'd be like 8%. 

932
00:50:47,040 --> 00:50:49,080
I'll let you borrow that money 
at 2%. 

933
00:50:49,760 --> 00:50:51,720
It's common sense which one you 
would choose. 

934
00:50:51,720 --> 00:50:54,200
You'd obviously want to borrow 
at 2% instead of eight, 

935
00:50:54,200 --> 00:50:56,120
obviously. 
Yeah, because your costs are 

936
00:50:56,120 --> 00:50:58,760
lower, right? 
Well, it's the same thing for 

937
00:50:58,760 --> 00:51:01,640
the government. 
When the government is borrowing

938
00:51:01,920 --> 00:51:05,560
in order to deficit spend, to 
fund its its budget, to spend 

939
00:51:05,760 --> 00:51:08,200
the money into circulation that 
they promised that they were 

940
00:51:08,200 --> 00:51:11,280
going to spend, but that they 
didn't collect in taxes the 

941
00:51:11,280 --> 00:51:12,960
extra money that they didn't 
have. 

942
00:51:13,200 --> 00:51:15,600
They have to borrow it. 
Well, when they borrow it, 

943
00:51:15,760 --> 00:51:18,600
they're borrowing it at 8% 
instead of 2%, right? 

944
00:51:18,600 --> 00:51:21,280
They're borrowing it at the 
higher rate instead of the lower

945
00:51:21,280 --> 00:51:23,080
rate. 
And when you borrow it at the 

946
00:51:23,080 --> 00:51:26,840
higher rate, that means over the
life of the loan, you're going 

947
00:51:26,840 --> 00:51:29,280
to have to create more currency 
units. 

948
00:51:29,640 --> 00:51:33,120
Well, that's the problem, right?
The this is what I mean by we're

949
00:51:33,120 --> 00:51:35,720
playing a different game every 
single time. 

950
00:51:35,720 --> 00:51:38,600
The financial We've ran into a 
financial problem in this 

951
00:51:38,600 --> 00:51:40,680
economy. 
The Federal Reserve has had to 

952
00:51:40,680 --> 00:51:43,560
create inflation. 
Whether it was, it doesn't 

953
00:51:43,560 --> 00:51:46,240
matter. 
What happened that the solution 

954
00:51:46,240 --> 00:51:49,040
to the problem was let's create 
inflation. 

955
00:51:49,560 --> 00:51:54,530
Now the problem is inflation. 
So you can't fix inflation with 

956
00:51:54,530 --> 00:51:57,770
more inflation. 
And that's where they're making 

957
00:51:57,770 --> 00:51:59,930
these decisions. 
They're using the old playbook 

958
00:51:59,970 --> 00:52:02,530
of creating inflation to try to 
fix the problem. 

959
00:52:02,730 --> 00:52:06,130
But this time around, the 
problem is inflation. 

960
00:52:06,330 --> 00:52:08,930
And you can't fix inflation with
more inflation. 

961
00:52:08,930 --> 00:52:12,730
You can't reduce the amount of 
currency units in circulation 

962
00:52:13,170 --> 00:52:15,250
when you're creating more 
currency units. 

963
00:52:15,770 --> 00:52:17,410
One more thing. 
I'd like to interject on this 

964
00:52:17,410 --> 00:52:21,430
point, because people ask me all
the time, OK, CJ, you get it, 

965
00:52:21,430 --> 00:52:22,750
You get it. 
But what can we do? 

966
00:52:23,270 --> 00:52:25,350
I'll tell you how easy it is. 
That's going to be one of my 

967
00:52:25,350 --> 00:52:27,350
questions. 
This is how easy it is guys. 

968
00:52:28,430 --> 00:52:32,350
The government simply spends the
money it collects in taxes and 

969
00:52:32,350 --> 00:52:35,070
not one penny more. 
That's all you have to do. 

970
00:52:35,390 --> 00:52:38,510
And and matter of fact, in the 
old days, the government would 

971
00:52:38,510 --> 00:52:42,150
spend less money than it 
collected and that's how you 

972
00:52:42,150 --> 00:52:44,530
would help bring prices down. 
Because. 

973
00:52:44,730 --> 00:52:49,210
That's like a great idea, right?
Collect the money in taxes and 

974
00:52:49,210 --> 00:52:52,250
then spend less money, less that
you collect in taxes. 

975
00:52:52,290 --> 00:52:54,690
And guess what? 
That piece of money that you 

976
00:52:54,690 --> 00:52:58,490
didn't spend, you're now taking 
that out of circulation that is 

977
00:52:58,490 --> 00:53:01,170
going into the Treasury general 
account and it becomes the 

978
00:53:01,170 --> 00:53:05,130
country's savings. 
And now the country is saving 

979
00:53:05,130 --> 00:53:08,490
money and that country and that 
money is taken out of 

980
00:53:08,490 --> 00:53:10,570
circulation. 
And then in the future, if 

981
00:53:10,570 --> 00:53:13,990
something bad happens, you have 
a pile of savings that you can 

982
00:53:13,990 --> 00:53:17,150
spend into circulation to help 
stimulate the economy. 

983
00:53:17,510 --> 00:53:21,550
Man, I have to laugh like, this 
is what this is what's been told

984
00:53:22,070 --> 00:53:26,270
in any like, bookkeeping 101 or 
finance 101, right? 

985
00:53:26,270 --> 00:53:28,710
Yeah, I mean, it's really that 
simple. 

986
00:53:31,190 --> 00:53:33,790
So that's funny, right? 
Like, OK, it's that simple, but 

987
00:53:33,790 --> 00:53:36,950
they're not doing it right. 
Which which that also. 

988
00:53:38,200 --> 00:53:41,000
There's a question is that also,
you know, we talked about when 

989
00:53:41,000 --> 00:53:43,200
you have Bitcoin, you're a full 
sovereign. 

990
00:53:43,520 --> 00:53:46,880
You are also fully responsible 
to what happens with that, 

991
00:53:47,480 --> 00:53:51,040
right? 
Like it's totally in your circle

992
00:53:51,040 --> 00:53:54,080
of control. 
There's no outsourcing of any 

993
00:53:54,080 --> 00:54:01,480
responsibility. 
Basically, if a society or an 

994
00:54:01,480 --> 00:54:05,760
economy runs on broken money and
we say it's broken because it's 

995
00:54:05,760 --> 00:54:07,770
not backed by anything. 
Right. 

996
00:54:07,770 --> 00:54:12,090
Like what we mentioned before, 
can you say that there's then 

997
00:54:12,090 --> 00:54:17,410
also like no responsibility or 
there's no, let's say even 

998
00:54:17,410 --> 00:54:21,770
feeling of responsibility or 
like the responsibilities 

999
00:54:21,850 --> 00:54:25,250
outside of anyone's circle who's
participating in the group 

1000
00:54:25,250 --> 00:54:29,010
decision making in in this 
example, you know in America 

1001
00:54:29,810 --> 00:54:31,930
also other other of course field
countries. 

1002
00:54:33,730 --> 00:54:36,210
Does that make sense to you? 
Like is there? 

1003
00:54:36,760 --> 00:54:39,760
Is there anything in there? 
Well, absolutely, because it, it

1004
00:54:39,760 --> 00:54:42,240
changes the incentives, it 
changes the underlying 

1005
00:54:42,240 --> 00:54:45,280
incentives of the economy. 
Here's how I'd like to put it, 

1006
00:54:45,280 --> 00:54:50,240
because you hear a lot of Gen. 
Xers, they they come out and 

1007
00:54:50,240 --> 00:54:54,600
they say debt is a bad thing. 
And the reason that they say 

1008
00:54:54,600 --> 00:54:59,120
debt is bad is because when they
were in their prime, right when 

1009
00:54:59,120 --> 00:55:02,080
when they were entering into 
their 30s and 40s, when they're 

1010
00:55:02,080 --> 00:55:06,350
making the most money and their 
wealth multiplies, the most debt

1011
00:55:06,350 --> 00:55:09,670
was a bad thing. 
And that's because real interest

1012
00:55:09,670 --> 00:55:12,510
rates or the amount of return 
you would get would be positive,

1013
00:55:12,910 --> 00:55:15,150
right? 
So if you take the the interest 

1014
00:55:15,150 --> 00:55:17,990
rate and you subtract the 
inflation, you get the real 

1015
00:55:17,990 --> 00:55:19,870
rate. 
And if that real rate is 

1016
00:55:19,870 --> 00:55:22,270
positive, then it makes sense to
save money. 

1017
00:55:22,430 --> 00:55:25,430
It doesn't make sense to have 
debt because debt is a 

1018
00:55:25,430 --> 00:55:27,630
liability. 
It's it's a burden to you. 

1019
00:55:27,670 --> 00:55:29,790
It requires more of your time 
and energy. 

1020
00:55:30,370 --> 00:55:33,810
So when you take out debt, be 
careful and don't carry debt 

1021
00:55:33,810 --> 00:55:36,170
because it's that is bad. 
You should only use it in search

1022
00:55:36,170 --> 00:55:40,170
situations. 
Well, this is where the the game

1023
00:55:40,170 --> 00:55:41,530
has changed. 
Those Gen. 

1024
00:55:41,610 --> 00:55:47,890
Xers don't understand that today
debt is actually an asset and 

1025
00:55:48,130 --> 00:55:51,570
it's an asset for the borrower 
and a liability for the lender. 

1026
00:55:51,890 --> 00:55:54,850
Right Back in their days, the 
banks wanted to lend money 

1027
00:55:54,850 --> 00:55:56,530
because they would make money 
off the debt. 

1028
00:55:56,770 --> 00:56:01,230
Today the banks lend money and 
then they sell that loan to 

1029
00:56:01,230 --> 00:56:04,110
pension funds and eat, you know,
a whole bunch of different. 

1030
00:56:04,710 --> 00:56:07,430
Divert a responsibility. 
Exactly. 

1031
00:56:07,710 --> 00:56:10,350
Well, yeah, to remove the risk 
from their book. 

1032
00:56:10,430 --> 00:56:12,350
Well, yes, because if they write
what I mean. 

1033
00:56:12,350 --> 00:56:15,470
They while you take on the 
responsibility when you correct,

1034
00:56:15,470 --> 00:56:17,590
when you lend it out, that's 
well, that's what I mean 

1035
00:56:17,590 --> 00:56:20,150
exactly. 
They say we can't be responsible

1036
00:56:20,150 --> 00:56:22,070
for this. 
So we'll put this risk on 

1037
00:56:22,070 --> 00:56:26,670
somebody else and and So what 
I'm trying to say is if if you 

1038
00:56:26,670 --> 00:56:31,380
want to buy a home in today's 
with the way today things are, 

1039
00:56:31,620 --> 00:56:34,300
it makes sense to borrow money. 
Because let's say you, let's say

1040
00:56:34,300 --> 00:56:36,340
you borrow money and you buy 
your home and your monthly 

1041
00:56:36,340 --> 00:56:41,540
payment is $3000. 
Well think about that in 2019 

1042
00:56:41,700 --> 00:56:44,460
you're you took out your loan, 
you're paying $3000 a month, 

1043
00:56:44,900 --> 00:56:47,060
everything is fine. 
This is within your budget 

1044
00:56:47,060 --> 00:56:49,300
within you know you can afford 
this. 

1045
00:56:49,580 --> 00:56:53,340
Well, now Fast forward from 2019
to 2020. 

1046
00:56:53,340 --> 00:56:59,490
Three $3000 is much less in 2023
in terms of purchasing power 

1047
00:56:59,810 --> 00:57:04,210
than it was in 2019. 
See, So to you it's an asset 

1048
00:57:04,210 --> 00:57:06,810
because you still have a fixed 
payment. 

1049
00:57:07,130 --> 00:57:09,730
All you got to do is pay $3000 a
month. 

1050
00:57:10,130 --> 00:57:14,450
Well, the bank or whoever owns 
the loan now becomes a liability

1051
00:57:14,650 --> 00:57:17,290
because they're only getting 
$3000 a month. 

1052
00:57:17,490 --> 00:57:19,690
But that is that and is worth 
much less now. 

1053
00:57:20,250 --> 00:57:23,370
And is that? 
You know, I don't have a finance

1054
00:57:23,370 --> 00:57:26,530
or econ background, so I'm 
learning as I go, but this is a 

1055
00:57:26,530 --> 00:57:31,530
great example I think. 
So numbers wise, you're spending

1056
00:57:31,530 --> 00:57:35,370
the same amount of units, right?
In this case like the 3000 a 

1057
00:57:35,370 --> 00:57:41,330
month and for you as the 
borrower, that's great, but that

1058
00:57:41,330 --> 00:57:46,130
doesn't take into account the 
value of that amount of money, 

1059
00:57:46,130 --> 00:57:51,090
which or maybe the price, but 
correct me if I'm wrong that. 

1060
00:57:51,680 --> 00:57:55,960
The bank financed it for 
eventually, right, Because they 

1061
00:57:55,960 --> 00:57:59,440
also got the money from 
somewhere, you know, with these,

1062
00:57:59,440 --> 00:58:03,960
with the rates. 
So for the bank, it's more 

1063
00:58:03,960 --> 00:58:10,960
expensive than for the lender, 
Is that correct? 

1064
00:58:12,200 --> 00:58:15,400
Yeah. 
So a lot of people think the way

1065
00:58:15,400 --> 00:58:18,080
a bank works is that they 
actually need a depositor's 

1066
00:58:18,080 --> 00:58:19,740
money to lend. 
Yeah. 

1067
00:58:20,100 --> 00:58:21,340
When did those? 
Yeah. 

1068
00:58:21,340 --> 00:58:23,780
But they don't. 
When you, when you deposit your 

1069
00:58:23,780 --> 00:58:27,140
money at a bank, you are 
actually lending your money to 

1070
00:58:27,140 --> 00:58:29,140
the bank. 
So the bank can go and do 

1071
00:58:29,140 --> 00:58:32,020
whatever they want with it. 
Now when somebody borrows money 

1072
00:58:32,020 --> 00:58:34,580
from the bank, this is where we 
go back to where we're talking 

1073
00:58:34,580 --> 00:58:36,740
about inflation created by the 
banks. 

1074
00:58:37,180 --> 00:58:40,260
The banks go to their balance 
sheet and they say, OK, this 

1075
00:58:40,260 --> 00:58:44,300
person owes me $1,000,000. 
And here's the $1,000,000 I'm 

1076
00:58:44,300 --> 00:58:45,980
going to get. 
They create it out of thin air. 

1077
00:58:46,060 --> 00:58:47,500
They create it through 
inflation. 

1078
00:58:48,060 --> 00:58:52,240
So to them there's a little bit 
less of a risk, but it it should

1079
00:58:52,240 --> 00:58:55,040
shine a real light and the 
alarms and bells and whistles 

1080
00:58:55,040 --> 00:58:57,640
can be going off. 
Because if the bank can create 

1081
00:58:57,640 --> 00:59:01,880
that money for free and they're 
still deciding that there's too 

1082
00:59:01,880 --> 00:59:05,920
much responsibility, there's too
much risk to keep free money on 

1083
00:59:05,920 --> 00:59:08,400
their book and they'd rather 
sell that loan off to the 

1084
00:59:08,400 --> 00:59:11,600
marketplace, yeah, that tells 
you the amount of risk in it. 

1085
00:59:11,600 --> 00:59:16,960
So the when the rate of 
inflation is greater than the 

1086
00:59:17,000 --> 00:59:20,890
interest rate, then real rates 
are negative. 

1087
00:59:20,970 --> 00:59:25,130
And when real rates are negative
it makes sense to borrow money. 

1088
00:59:25,130 --> 00:59:27,090
That's why the Gen. 
Xers are so confused. 

1089
00:59:27,090 --> 00:59:30,930
In their time, real rates were 
positive, so debt was bad. 

1090
00:59:30,970 --> 00:59:33,610
You didn't want to have any 
debt, you wanted to pay off your

1091
00:59:33,610 --> 00:59:37,530
debt as quickly as possible. 
Today, it makes sense to carry 

1092
00:59:37,530 --> 00:59:39,890
debt. 
If you have a 30 year mortgage 

1093
00:59:39,970 --> 00:59:44,170
here in the United States and 
you have that $3000 payment in 

1094
00:59:44,170 --> 00:59:48,230
10 years, maybe even sooner than
that, you might be able to go 

1095
00:59:48,230 --> 00:59:52,830
out to the street and pick up 
$3000 off the ground and then 

1096
00:59:52,830 --> 00:59:54,990
walk into the bank and make your
monthly payment. 

1097
00:59:55,310 --> 00:59:57,750
Well, that's great for you. 
That's what I meant. 

1098
00:59:57,750 --> 01:00:02,510
Like on paper, then on paper the
number, the 3000 number stays 

1099
01:00:02,510 --> 01:00:07,670
the same, but the value of that 
3000 is being debased, right? 

1100
01:00:07,670 --> 01:00:09,710
And that is the problem for the 
bank. 

1101
01:00:10,210 --> 01:00:12,090
Right, that was what I was 
trying to illustrate. 

1102
01:00:12,170 --> 01:00:16,130
Yeah, I think that is absolutely
correct and that that risk, that

1103
01:00:16,130 --> 01:00:20,930
problem has been shifted through
multiple securities products 

1104
01:00:21,330 --> 01:00:24,330
back on to the people and it 
goes back to what you originally

1105
01:00:24,330 --> 01:00:26,250
said. 
Why don't we understand these 

1106
01:00:26,250 --> 01:00:27,570
things? 
Why aren't we taught these 

1107
01:00:27,570 --> 01:00:29,370
things well? 
Because if we were, we wouldn't 

1108
01:00:29,370 --> 01:00:32,210
be buying debt when it was 1% to
save an asset. 

1109
01:00:32,760 --> 01:00:36,280
So let's tie it back to Bitcoin 
and transparency, etc, right. 

1110
01:00:36,280 --> 01:00:39,200
Like I think you you illustrated
a bit like these and these 

1111
01:00:39,200 --> 01:00:42,520
security products and yada da 
da, like we don't even know. 

1112
01:00:42,520 --> 01:00:44,760
We don't even know all the 
things that are out there, 

1113
01:00:44,760 --> 01:00:47,600
right? 
But the fact that is obscured 

1114
01:00:47,840 --> 01:00:54,200
by, you know, and abstracted by 
multiple layers basically and 

1115
01:00:54,200 --> 01:00:57,200
also even within finance 
professionals, right, like 

1116
01:00:57,200 --> 01:01:02,310
someone at a pension fund is 
buying this, I don't know. 

1117
01:01:02,310 --> 01:01:04,070
Is that what you call a subprime
mortgage? 

1118
01:01:04,070 --> 01:01:05,430
No, that's not a subprime 
mortgage. 

1119
01:01:05,430 --> 01:01:10,710
That is what the asset value is.
But like a mortgage that's 

1120
01:01:10,710 --> 01:01:14,270
deemed too risky of the bank is 
being taken over by another 

1121
01:01:14,270 --> 01:01:18,030
finance professional who works 
at a pension fund and well, 

1122
01:01:18,110 --> 01:01:19,510
multiple layers and all these 
things. 

1123
01:01:19,590 --> 01:01:23,750
My point is, it's very obscure 
and vague, right, and very hard 

1124
01:01:23,750 --> 01:01:27,240
to trace as well until it 
potentially blows up. 

1125
01:01:27,360 --> 01:01:29,960
And then you know, when you pick
up the pieces, you'll see who 

1126
01:01:30,000 --> 01:01:33,000
had what and why they blew up, 
right? 

1127
01:01:34,720 --> 01:01:39,280
If we put that against Bitcoin, 
which is again 24/7 365 

1128
01:01:39,280 --> 01:01:41,240
auditable, everything is 
transparent. 

1129
01:01:41,240 --> 01:01:43,760
You can see all the 
transactions, you can see which 

1130
01:01:43,760 --> 01:01:45,400
account has what and all these 
things. 

1131
01:01:46,840 --> 01:01:50,880
How can you mentioned to me 
before you said Bitcoin as a 

1132
01:01:50,880 --> 01:01:54,640
mean is a means to accomplish 
the American dream and to grow 

1133
01:01:54,640 --> 01:01:57,200
wealth which is purchasing power
in the future. 

1134
01:01:58,760 --> 01:02:01,440
It's the solution to the problem
that millennials have, which is 

1135
01:02:01,440 --> 01:02:04,920
they are getting paid in what we
talked about the currency versus

1136
01:02:05,920 --> 01:02:09,400
money. 
How do you, how do you take that

1137
01:02:09,400 --> 01:02:10,640
step? 
Like, why? 

1138
01:02:10,640 --> 01:02:12,800
Why is Bitcoin that that 
solution? 

1139
01:02:13,520 --> 01:02:15,960
Yeah. 
So it's the characteristics of 

1140
01:02:15,960 --> 01:02:20,080
money that make Bitcoin the 
solution, because no government.

1141
01:02:20,410 --> 01:02:25,490
No agency, no financial product 
can be designed to dilute 

1142
01:02:26,090 --> 01:02:28,490
Bitcoin. 
There's only 21 million units 

1143
01:02:28,490 --> 01:02:31,810
and there'll never be more. 
And that fact alone is what 

1144
01:02:31,810 --> 01:02:35,010
allows you to use it as a as a 
tool for savings. 

1145
01:02:35,010 --> 01:02:38,810
But in today's world, I know a 
lot of millennials, you know, my

1146
01:02:38,810 --> 01:02:42,970
peers, they come and they ask 
me, well, CJ, are you telling me

1147
01:02:42,970 --> 01:02:45,970
that I shouldn't buy a three 
month U.S. 

1148
01:02:45,970 --> 01:02:48,690
Treasury bond or a six month 
bond and earn 5? 

1149
01:02:49,520 --> 01:02:52,680
Percent plus, I shouldn't be 
earning 5% yield, right? 

1150
01:02:52,680 --> 01:02:58,200
So the idea has transitioned 
from savings to cash flow. 

1151
01:02:58,720 --> 01:03:01,920
Like there's just there's been a
huge transition in the 

1152
01:03:01,920 --> 01:03:07,040
underlying psyche of the 
marketplace to where savings is 

1153
01:03:07,040 --> 01:03:12,440
less important than cash flow. 
And when rates are positive, 

1154
01:03:12,440 --> 01:03:15,280
that's true. 
But the yield on Bitcoin the the

1155
01:03:15,400 --> 01:03:18,240
the cash flow, the satoshi flow 
on Bitcoin. 

1156
01:03:18,770 --> 01:03:20,810
Really can be viewed to two 
different ways. 

1157
01:03:20,810 --> 01:03:25,890
The 1st way is that Bitcoin over
the last 10 years has a 

1158
01:03:25,890 --> 01:03:31,250
compounded annual growth rate of
80% plus, so let's just call it 

1159
01:03:31,250 --> 01:03:33,290
80%. 
So imagine if U.S. 

1160
01:03:33,290 --> 01:03:37,330
Treasuries were paying 80%. 
That has been the compounding 

1161
01:03:37,370 --> 01:03:40,650
annual growth rate of Bitcoin 
because of the difficulty 

1162
01:03:40,650 --> 01:03:43,490
adjustment and the exponential 
growth of the network and 

1163
01:03:43,490 --> 01:03:46,610
because we're at the bottom of 
the S curve moving to the top 

1164
01:03:46,610 --> 01:03:49,780
through adoption. 
All of those factors allow 

1165
01:03:49,780 --> 01:03:55,860
bitcoins store value property to
produce over the last 10 year 

1166
01:03:55,860 --> 01:04:01,780
period, 80% increases in your 
purchasing power per year over 

1167
01:04:01,780 --> 01:04:03,780
the last 10 years. 
Whereas right now with the US 

1168
01:04:03,780 --> 01:04:08,340
Treasuries you're getting 5% of 
an of an increase, but real 

1169
01:04:08,340 --> 01:04:13,820
inflation is probably 10%, so 
really you get like -5% whereas 

1170
01:04:13,820 --> 01:04:15,820
bitcoins giving you 80. 
That's the first way. 

1171
01:04:16,280 --> 01:04:18,240
The 2nd way is through mining 
Bitcoin. 

1172
01:04:18,720 --> 01:04:22,560
The difference between the cost 
of producing a Bitcoin and the 

1173
01:04:22,560 --> 01:04:25,840
price that you can sell on the 
market price, that's the yield. 

1174
01:04:26,000 --> 01:04:29,880
So if it if it cost me $20,000 
to mine a Bitcoin and I can sell

1175
01:04:29,880 --> 01:04:35,000
to you today for $26,000 that's 
a 30% yield. 

1176
01:04:35,320 --> 01:04:39,600
I'm selling it to you for 30% 
above my all in cost. 

1177
01:04:40,440 --> 01:04:42,480
That is where you can you you 
can yield. 

1178
01:04:42,480 --> 01:04:45,640
So you can take advantage of 
Bitcoin through its. 

1179
01:04:46,280 --> 01:04:49,680
Compounding growth rate through 
the adoption cycle. 

1180
01:04:50,000 --> 01:04:53,720
Or you can mine Bitcoin and take
advantage of the difference 

1181
01:04:53,720 --> 01:04:56,400
between the cost of production 
and the price that you can sell 

1182
01:04:56,400 --> 01:04:59,880
it for on the marketplace. 
Those are the two best ways to 

1183
01:04:59,880 --> 01:05:01,920
yield with Bitcoin. 
And if you're a new and you're 

1184
01:05:01,920 --> 01:05:05,720
just starting, obviously you buy
it and you use it as savings. 

1185
01:05:05,920 --> 01:05:08,240
But the more and more you get 
into this and the more and more 

1186
01:05:08,240 --> 01:05:11,000
you study it and start to 
understand, you know, you're 

1187
01:05:11,000 --> 01:05:14,200
going to go down that path of 
how can I get involved, you 

1188
01:05:14,200 --> 01:05:16,650
know, let me run a node. 
Let me start mining. 

1189
01:05:16,810 --> 01:05:20,850
Let me figure out different ways
that I can use Bitcoin, because 

1190
01:05:20,970 --> 01:05:26,210
Bitcoin empowers us in a whole 
new set of ways that the quite 

1191
01:05:26,210 --> 01:05:29,490
honestly and frankly the 
traditional world is not ready 

1192
01:05:30,090 --> 01:05:34,250
to for the full unlocking of of 
Bitcoin and all that it's going 

1193
01:05:34,250 --> 01:05:37,090
to do for for people in the 
future. 

1194
01:05:38,290 --> 01:05:42,530
And so when when people hear 
this and you think, OK, you got 

1195
01:05:42,530 --> 01:05:46,510
me, I'm interested, they will 
see all the other 

1196
01:05:46,510 --> 01:05:50,830
cryptocurrencies, right? 
What's what's your like? 

1197
01:05:50,830 --> 01:05:55,190
Go to explainer why Bitcoin is 
different and why they should 

1198
01:05:55,190 --> 01:05:57,030
ignore the other stuff. 
Yeah. 

1199
01:05:58,470 --> 01:06:01,430
My go to explanation for this is
Bitcoin. 

1200
01:06:01,630 --> 01:06:04,230
Let's let's think of these as 
networks, right? 

1201
01:06:04,230 --> 01:06:08,670
So you have like, Facebook, and 
you have Twitter, and then you 

1202
01:06:08,670 --> 01:06:12,070
have Like, Gab and Truth, 
Social, and probably a whole 

1203
01:06:12,070 --> 01:06:14,070
bunch of other networks that you
never heard before. 

1204
01:06:14,480 --> 01:06:16,760
Right. 
And Facebook is Facebook because

1205
01:06:16,800 --> 01:06:19,960
of how many users it has, right?
Twitter is Twitter because of 

1206
01:06:19,960 --> 01:06:24,360
how many users it has. 
And these other companies are 

1207
01:06:24,800 --> 01:06:28,480
lower, less name, no Brent 
because they have a smaller user

1208
01:06:28,480 --> 01:06:32,000
base, a smaller network. 
So now let's take a look at like

1209
01:06:32,000 --> 01:06:35,960
Bitcoin and Aetherium and say 
Monaro. 

1210
01:06:36,240 --> 01:06:40,080
Well, when you look at the 
Bitcoin network, Bitcoins 

1211
01:06:40,080 --> 01:06:46,320
network is like an ocean. 
And Ethereum's network is like a

1212
01:06:46,320 --> 01:06:50,920
lake, like a small lake. 
And then Monero's network is 

1213
01:06:50,920 --> 01:06:54,000
like a puddle, right? 
So when it comes, we have a 

1214
01:06:54,000 --> 01:06:57,120
whole bunch of soda cans and 
like, shelf glasses. 

1215
01:06:57,880 --> 01:07:07,080
Yeah, 99 Percent, 99.9% of of 
coins and networks are scams and

1216
01:07:07,080 --> 01:07:09,600
shit coins and you should stay 
as far away from them as you 

1217
01:07:09,600 --> 01:07:12,310
possibly can. 
And why are they there? 

1218
01:07:12,350 --> 01:07:15,470
Why are they like, I agree. 
But like why are they there? 

1219
01:07:15,470 --> 01:07:20,230
Is it like trying to profit of 
the invention? 

1220
01:07:20,230 --> 01:07:22,550
I would say that is Bitcoin 
right? 

1221
01:07:22,550 --> 01:07:26,710
Like okay this new invention 
broke True. 

1222
01:07:26,990 --> 01:07:32,630
I'm gonna say it's good but not 
that good enough and so I have a

1223
01:07:32,630 --> 01:07:34,910
better solution right. 
Like is it just? 

1224
01:07:35,750 --> 01:07:37,590
Optimistic. 
So if you hear something 

1225
01:07:37,590 --> 01:07:39,350
described like that, it's a 
scam. 

1226
01:07:39,780 --> 01:07:42,100
Because there is nothing that 
can compete with Bitcoin. 

1227
01:07:42,540 --> 01:07:45,940
The Bitcoin network is the only 
network that is truly 

1228
01:07:45,940 --> 01:07:49,580
decentralized. 
There is no other network at all

1229
01:07:49,580 --> 01:07:52,220
that exists that's decentralized
besides the Internet. 

1230
01:07:52,220 --> 01:07:54,580
Really, the Internet isn't like 
the wheel, you know? 

1231
01:07:54,580 --> 01:07:58,220
Like, the wheel was invented and
now, like, it's not like we have

1232
01:07:58,220 --> 01:08:00,500
like, Octagon right? 
Wheels. 

1233
01:08:00,700 --> 01:08:03,980
And once the wheel wasn't like. 
You don't need another wheel. 

1234
01:08:04,220 --> 01:08:05,980
Bitcoin. 
Bitcoin is the wheel. 

1235
01:08:06,260 --> 01:08:08,180
But you know what you have to do
with the wheel. 

1236
01:08:08,750 --> 01:08:11,950
You have to attach it to a cart 
because when you attach it to a 

1237
01:08:11,950 --> 01:08:14,710
cart, it makes you that much 
more productive. 

1238
01:08:15,270 --> 01:08:18,109
And that's where some of these 
other things start to make 

1239
01:08:18,109 --> 01:08:20,510
sense. 
For instance, when I 

1240
01:08:21,189 --> 01:08:24,910
participated in the Ethereum 
ICO, my thought was, oh, 

1241
01:08:24,950 --> 01:08:26,790
Ethereum is going to be better 
than Bitcoin. 

1242
01:08:26,990 --> 01:08:29,069
It's going to, it's, it fixes 
the problems better. 

1243
01:08:29,069 --> 01:08:33,149
And I'm so disgusted with where 
the network has gone because the

1244
01:08:33,149 --> 01:08:36,430
first idea around Ethereum was 
Bitcoin is money. 

1245
01:08:36,950 --> 01:08:40,620
And now? 
I want to have gas South that I 

1246
01:08:40,620 --> 01:08:42,700
can execute smart contracts for 
my money. 

1247
01:08:43,180 --> 01:08:45,859
In other words, instead of 
rammed the car with the wheel 

1248
01:08:46,140 --> 01:08:47,819
writing. 
So we got the wheel. 

1249
01:08:47,939 --> 01:08:50,700
Now let's put the wheel on the 
cart because the cart is going 

1250
01:08:50,700 --> 01:08:53,460
to allow me to offer all these 
different products and certain 

1251
01:08:53,500 --> 01:08:56,740
if I have the wheel, I can't 
carry the dirt from point A to 

1252
01:08:56,740 --> 01:08:59,220
point B, right? 
But if I have the wheel on the 

1253
01:08:59,220 --> 01:09:02,220
cart now, I can offer a product 
or service that allows me to 

1254
01:09:02,220 --> 01:09:04,220
carry the dirt from point A to 
point B. 

1255
01:09:04,580 --> 01:09:08,060
So all these other networks that
exist to compete with Bitcoin 

1256
01:09:08,220 --> 01:09:11,180
are shit coins and they're scams
and you should stay away from 

1257
01:09:11,180 --> 01:09:13,420
them. 
But there are a few that 

1258
01:09:13,420 --> 01:09:18,420
complement Bitcoin that only 
exists because of Bitcoin, that 

1259
01:09:18,420 --> 01:09:21,819
in their greatest dreams never 
compete with Bitcoin. 

1260
01:09:21,979 --> 01:09:24,899
Their goal is and desire is not 
to compete with Bitcoin because 

1261
01:09:24,899 --> 01:09:28,020
they can't be money because 
they're shit coins that can the 

1262
01:09:28,819 --> 01:09:31,979
the. 
It's just there is no other need

1263
01:09:31,979 --> 01:09:34,069
for another wheel. 
Bitcoin is the wheel. 

1264
01:09:34,149 --> 01:09:38,069
But you know what, Let's build a
cart and that cart is only going

1265
01:09:38,069 --> 01:09:41,990
to exist because of the Bitcoin 
wheel and that's going to allow 

1266
01:09:41,990 --> 01:09:43,590
us. 
That's where that, you know, 

1267
01:09:43,590 --> 01:09:46,310
when I say Bitcoin is the 
reserve asset of the Internet 

1268
01:09:46,310 --> 01:09:50,430
economy, this is what I mean. 
All that wealth that's 

1269
01:09:50,430 --> 01:09:54,590
structured into these treasuries
and backed by tax receipts in 

1270
01:09:54,590 --> 01:09:57,750
the Internet economy, all of 
that wealth is centered in 

1271
01:09:57,750 --> 01:09:59,120
Bitcoin. 
Right. 

1272
01:09:59,120 --> 01:10:01,320
And then you have all these 
different types of products that

1273
01:10:01,320 --> 01:10:03,160
are based off of the 
government's tax. 

1274
01:10:03,240 --> 01:10:06,040
So the government collects tax 
and they create a product called

1275
01:10:06,040 --> 01:10:08,720
a treasury. 
So now you can buy government 

1276
01:10:08,960 --> 01:10:12,080
tax receipts through a treasury.
Well, a treasury would never 

1277
01:10:12,080 --> 01:10:14,200
exist if they weren't collecting
taxes. 

1278
01:10:14,640 --> 01:10:18,080
Well, if we didn't have Bitcoin,
then there'd be no if there'd be

1279
01:10:18,080 --> 01:10:20,640
no need for Ethereum. 
Because what were you gonna, 

1280
01:10:20,640 --> 01:10:22,080
what is the theory I'm going to 
do be money. 

1281
01:10:22,280 --> 01:10:25,280
It's there's an unlimited supply
you can't even audit the supply 

1282
01:10:25,280 --> 01:10:26,680
of. 
I can't tell you what the supply

1283
01:10:26,680 --> 01:10:29,760
of Ethereum is going to be. 
At any point in time with 

1284
01:10:29,760 --> 01:10:32,440
Bitcoin, I can tell you exactly 
what it's going to be at any 

1285
01:10:32,440 --> 01:10:35,480
point in time. 
So there's no need for Ethereum 

1286
01:10:35,480 --> 01:10:38,160
without Bitcoin. 
But with Bitcoin, like I was 

1287
01:10:38,160 --> 01:10:41,760
saying earlier when D Phi first 
came out, this is when I really 

1288
01:10:41,760 --> 01:10:45,680
started becoming passionate and 
starting to understand that 

1289
01:10:45,680 --> 01:10:49,600
Bitcoin. 
I think Bitcoin is evolving from

1290
01:10:49,600 --> 01:10:51,960
digital gold to digital 
collateral. 

1291
01:10:52,540 --> 01:10:54,060
Right. 
Because you had gold and the 

1292
01:10:54,060 --> 01:10:57,620
problem with gold was it's too 
expensive when when gold is a 

1293
01:10:57,620 --> 01:11:00,940
collateral me and collateral is 
like if you want to borrow 

1294
01:11:00,940 --> 01:11:04,980
something for me, then I need 
something to protect the money 

1295
01:11:04,980 --> 01:11:06,900
that I'm giving to you. 
I'm not just going to give it to

1296
01:11:06,900 --> 01:11:09,260
you based on credit. 
Protect the risk of the of 

1297
01:11:09,500 --> 01:11:10,900
right. 
Given it so, you know, if you 

1298
01:11:10,900 --> 01:11:14,380
want to build, if you want to 
borrow $1,000,000 from me and 

1299
01:11:14,380 --> 01:11:18,100
you give me $2,000,000 of 
Bitcoin, I have no concerns that

1300
01:11:18,100 --> 01:11:19,620
you're borrowing $1,000,000 from
me. 

1301
01:11:20,130 --> 01:11:22,690
You know, because I have 
$2,000,000 worth of collateral. 

1302
01:11:23,450 --> 01:11:25,570
Well, you're going to, I'm going
to earn interest from the 

1303
01:11:25,570 --> 01:11:27,370
$1,000,000 that you're borrowing
from me. 

1304
01:11:27,570 --> 01:11:32,770
So these types of products are 
are interesting to me because I 

1305
01:11:32,770 --> 01:11:35,610
think the future of finance is 
going to be built around Bitcoin

1306
01:11:35,610 --> 01:11:38,890
equity and people who hold 
Bitcoin are going to have access

1307
01:11:39,130 --> 01:11:43,170
to the best interest rates 
because it is the most pristine 

1308
01:11:43,170 --> 01:11:45,650
form of collateral if you can 
post Bitcoin collateral. 

1309
01:11:46,050 --> 01:11:47,410
You're going to get reduced 
interest rates. 

1310
01:11:47,410 --> 01:11:49,570
If you can post Bitcoin 
collateral, you're going to be 

1311
01:11:49,570 --> 01:11:52,890
able to earn cash flows because 
it's the reserve asset of the 

1312
01:11:52,890 --> 01:11:56,130
Internet economy. 
The entire financial structure 

1313
01:11:56,130 --> 01:12:00,050
of the Internet economy is going
to be backed and supported by 

1314
01:12:00,050 --> 01:12:04,210
Bitcoin equity, a lot like the 
traditional economy is backed by

1315
01:12:04,610 --> 01:12:07,650
tax receipts and and in the form
of treasuries. 

1316
01:12:07,690 --> 01:12:09,810
So treasuries are the number 
one. 

1317
01:12:10,210 --> 01:12:13,450
Reserve collateral where there's
the most demand in the future, 

1318
01:12:13,690 --> 01:12:16,370
Bitcoin is going to be the 
number one reserve collateral 

1319
01:12:16,490 --> 01:12:19,290
with the most demand. 
But of the Internet economy and 

1320
01:12:19,290 --> 01:12:22,250
what I love about the Internet 
economy and our generation, we 

1321
01:12:22,250 --> 01:12:25,810
understand the Internet. 
Look, no one economy can out 

1322
01:12:25,810 --> 01:12:28,130
compete the Internet economy 
because it's an aggregate 

1323
01:12:28,170 --> 01:12:31,050
economy of the entire world. 
So it doesn't matter. 

1324
01:12:31,940 --> 01:12:33,580
Who? 
Who tries to compete with it? 

1325
01:12:33,740 --> 01:12:36,260
The game is already over. 
The the wars already been 

1326
01:12:36,260 --> 01:12:37,780
fought. 
The battles already been won. 

1327
01:12:38,020 --> 01:12:41,620
The Internet economy is is the 
best economy in the world. 

1328
01:12:41,620 --> 01:12:45,100
It may only be the actually the 
only growing economy in the 

1329
01:12:45,100 --> 01:12:47,100
world at this point. 
Every other economy is 

1330
01:12:47,100 --> 01:12:49,460
stagflating. 
The Internet economy continues 

1331
01:12:49,460 --> 01:12:51,020
to grow. 
That's why if you're on 

1332
01:12:51,020 --> 01:12:53,260
Instagram and all this other 
stuff, you always see these. 

1333
01:12:53,730 --> 01:12:56,010
Start your Shopify store. 
Do, do, do, do you know 

1334
01:12:56,170 --> 01:12:58,130
e-commerce. 
You know, why are these things 

1335
01:12:58,130 --> 01:13:00,130
so popular? 
Because the Internet economy, 

1336
01:13:00,130 --> 01:13:01,490
that's where these things are 
growing. 

1337
01:13:01,610 --> 01:13:03,810
You don't need a storefront 
anymore where you can sell to 

1338
01:13:03,810 --> 01:13:05,930
your local town, you can sell 
the whole world. 

1339
01:13:06,330 --> 01:13:10,570
Well, Bitcoin secures that 
economy that is selling to the 

1340
01:13:10,570 --> 01:13:13,130
whole world, whereas the 
treasuries, they secure the 

1341
01:13:13,130 --> 01:13:16,170
local economy. 
So being able to draw that 

1342
01:13:16,170 --> 01:13:20,250
parallel, it really shows you, 
you know, what Bitcoin is poised

1343
01:13:20,250 --> 01:13:23,750
to do, but without, you know. 
I don't want to say Ethereum 

1344
01:13:23,750 --> 01:13:25,190
because I think Ethereum made 
the wrong. 

1345
01:13:25,430 --> 01:13:28,710
If I was, if they listened to 
me, we would have did 1000 to 1 

1346
01:13:28,710 --> 01:13:31,630
split on Ethereum. 
For every one Ethereum you had, 

1347
01:13:31,870 --> 01:13:33,870
you would have got 1000 more 
Ethereum. 

1348
01:13:34,350 --> 01:13:38,270
The price of Ethereum would have
went from $4000 down to $4.00. 

1349
01:13:38,630 --> 01:13:41,070
Much more people would have 
entered into the marketplace. 

1350
01:13:41,550 --> 01:13:43,230
Remember we were paying gas 
prices. 

1351
01:13:43,230 --> 01:13:45,790
If you wanted to do 1D5 
transaction, it could cost like 

1352
01:13:45,790 --> 01:13:49,510
five $600.00 just to execute 
that transaction well. 

1353
01:13:50,940 --> 01:13:54,820
Imagine if it was only $0.50. 
All these other shit coins, all 

1354
01:13:54,820 --> 01:14:00,060
of these other L2 S wouldn't 
even exist if Aetherium had just

1355
01:14:00,060 --> 01:14:03,740
accepted its role, which was 
We're not the wheel, we're not 

1356
01:14:03,740 --> 01:14:06,060
money, right? 
We're not sound money, Bitcoin 

1357
01:14:06,060 --> 01:14:08,140
of sound money. 
But they're just gas. 

1358
01:14:08,420 --> 01:14:11,420
And the reason our gas exists is
because these smart contracts 

1359
01:14:11,420 --> 01:14:14,740
are the cart to your wheel that 
are going to help us build this 

1360
01:14:14,860 --> 01:14:17,060
future of finance around Bitcoin
equity. 

1361
01:14:17,260 --> 01:14:20,330
So yes, most of it is shit. 
Most of it. 

1362
01:14:20,330 --> 01:14:22,290
You should stay as far away from
you and if you don't have 

1363
01:14:22,290 --> 01:14:24,610
Bitcoin, you shouldn't have 
anything else, right? 

1364
01:14:24,610 --> 01:14:27,370
Don't think of it as, oh, I 
gotta take a risk on something 

1365
01:14:27,370 --> 01:14:28,890
else to just one or that one. 
Yeah. 

1366
01:14:29,010 --> 01:14:32,650
Or buy Ripple, because it's only
this and that scent or whatever.

1367
01:14:32,850 --> 01:14:34,770
Forget about it. 
Bitcoin is the way. 

1368
01:14:36,370 --> 01:14:40,370
So can you share a common 
misconception about Bitcoin that

1369
01:14:40,370 --> 01:14:45,810
you would wish to debunk? 
This is this is the moment so. 

1370
01:14:46,240 --> 01:14:48,400
I think I, yeah, I mean that 
goes back to the way we 

1371
01:14:48,400 --> 01:14:50,080
originally started the 
conversation. 

1372
01:14:50,440 --> 01:14:53,160
The, the, the, the thing I hear 
back most not only from the 

1373
01:14:53,160 --> 01:14:56,680
millennials but from all 
generations is oh, bitcoins not 

1374
01:14:56,680 --> 01:15:00,840
backed by anything. 
Well, and and and also Bitcoin 

1375
01:15:00,840 --> 01:15:04,280
is new, right. 
So let's, let's dive into both 

1376
01:15:04,280 --> 01:15:05,920
of those things. 
The first thing let's talk about

1377
01:15:05,920 --> 01:15:10,360
Bitcoin is just some new idea. 
Well, that's absolutely false 

1378
01:15:10,360 --> 01:15:14,080
because if you go back and you 
look at some of the great minds 

1379
01:15:14,080 --> 01:15:16,360
like Hayek. 
And others. 

1380
01:15:16,440 --> 01:15:20,040
They were talking about a 
decentralized port even all the 

1381
01:15:20,040 --> 01:15:21,600
way back. 
All the way back. 

1382
01:15:21,600 --> 01:15:25,280
So there there has really been 
probably about I would say over 

1383
01:15:25,280 --> 01:15:31,320
50, probably close to 50 years 
of development on a on a private

1384
01:15:31,320 --> 01:15:34,960
digital commodity money. 
So actually that development and

1385
01:15:34,960 --> 01:15:36,000
research right. 
And why? 

1386
01:15:36,000 --> 01:15:42,360
I said Ford and Tesla, they 
conceptualized a money backed by

1387
01:15:42,360 --> 01:15:45,680
energy, right? 
Actually like on record. 

1388
01:15:46,080 --> 01:15:46,600
Henry. 
Yeah. 

1389
01:15:46,600 --> 01:15:49,520
Henry Ford, this was back in 
1921. 

1390
01:15:49,800 --> 01:15:52,720
He, he actually made an 
announcement that if the 

1391
01:15:52,720 --> 01:15:55,760
government gave him permission 
to use this factory, he was 

1392
01:15:55,760 --> 01:15:58,560
going to demonstrate how he 
could create an energy currency,

1393
01:15:58,880 --> 01:16:01,080
a currency backed by energy. 
Sound familiar? 

1394
01:16:01,800 --> 01:16:05,920
And this was in 1921. 
So, you know, this is an old 

1395
01:16:05,920 --> 01:16:08,400
idea. 
It's just that we now have the 

1396
01:16:08,400 --> 01:16:11,890
technology, not just. 
Computer technology, but 

1397
01:16:11,890 --> 01:16:16,090
advancements in mathematics and 
cryptography and other things 

1398
01:16:16,090 --> 01:16:20,330
that have finally come together 
and allowed a private digital 

1399
01:16:20,330 --> 01:16:25,570
commodity, money that cannot be 
stopped by the existing powers 

1400
01:16:25,570 --> 01:16:30,090
that control over money. 
High accepted the best way that 

1401
01:16:30,370 --> 01:16:35,290
law, language, and money are the
three basis that government 

1402
01:16:35,290 --> 01:16:38,770
forms around. 
Thank God law and language have 

1403
01:16:38,770 --> 01:16:42,680
been able to develop. 
But money has not been allowed 

1404
01:16:42,680 --> 01:16:44,800
to develop. 
Bitcoin is the first 

1405
01:16:45,960 --> 01:16:50,240
development, and money the first
technological evolution and 

1406
01:16:50,240 --> 01:16:53,760
money to change its fundamental 
structure, right? 

1407
01:16:53,760 --> 01:16:55,800
We went from paper to credit 
cards. 

1408
01:16:55,800 --> 01:16:59,360
So that was cool because you 
went from cash to credit cards 

1409
01:16:59,360 --> 01:17:01,040
and Venmo and all these other 
things? 

1410
01:17:01,420 --> 01:17:03,780
But there was no fundamental 
change because it was still a 

1411
01:17:03,780 --> 01:17:07,220
currency that derived its value 
from a treasury which derived 

1412
01:17:07,220 --> 01:17:11,260
another abstraction, basically. 
Now we have a private, digital, 

1413
01:17:11,260 --> 01:17:15,420
decentralized commodity money 
that cannot be stopped by any 

1414
01:17:15,420 --> 01:17:18,500
one power and it's completely 
decentralized. 

1415
01:17:18,500 --> 01:17:22,180
So the idea that Bitcoin is new,
it's risky. 

1416
01:17:22,180 --> 01:17:25,660
It's unsafe, it's dangerous. 
It hasn't been well thought out.

1417
01:17:26,660 --> 01:17:28,820
They've been talking about this 
for over 100 years. 

1418
01:17:28,860 --> 01:17:31,900
It's just now we have the 
technology and the means to 

1419
01:17:31,900 --> 01:17:35,540
actually bring it to market and 
and thank God we have because 

1420
01:17:35,700 --> 01:17:37,820
it's it's the solution to our 
problems. 

1421
01:17:38,140 --> 01:17:43,140
Now the second thing is that 
it's not backed by anything and 

1422
01:17:43,140 --> 01:17:45,260
this is goes back to what we 
were originally talking about. 

1423
01:17:46,500 --> 01:17:50,220
Proof of work equals cost of 
production equals natural asset 

1424
01:17:50,220 --> 01:17:53,060
value. 
So what is the natural asset 

1425
01:17:53,060 --> 01:17:55,660
value of Bitcoin? 
Most people would say, well, 

1426
01:17:55,660 --> 01:17:58,580
it's zero. 
But that's simply not true, 

1427
01:17:58,740 --> 01:18:02,700
because there's a cost to 
generate a Bitcoin, and the cost

1428
01:18:02,700 --> 01:18:06,180
to generate a Bitcoin is its 
natural asset value. 

1429
01:18:06,620 --> 01:18:10,780
So the so the question becomes 
that's also why maybe to add to 

1430
01:18:10,780 --> 01:18:16,140
that, that's why the miners also
are incentivized to find the 

1431
01:18:16,140 --> 01:18:20,180
cheapest energy, right, the 
value of that energy. 

1432
01:18:20,420 --> 01:18:22,100
Absolutely. 
And because then lower their 

1433
01:18:22,100 --> 01:18:25,380
costs, the higher their profit 
and why are they in business? 

1434
01:18:25,650 --> 01:18:30,370
To profit. 
So Bitcoin is the only besides 

1435
01:18:30,370 --> 01:18:36,210
basic human demand for energy, 
Bitcoin is the only human 

1436
01:18:36,210 --> 01:18:42,530
network that incentivizes energy
technology innovation in a 

1437
01:18:42,530 --> 01:18:46,970
sustainable way. 
So the so because the technology

1438
01:18:46,970 --> 01:18:52,410
aspect of it actually keeps the 
energy that's used or that's 

1439
01:18:52,410 --> 01:18:57,630
transformed from wind or solar 
or hydro or whatever, it 

1440
01:18:57,630 --> 01:19:02,070
actually packages. 
That sounds weird, but that's 

1441
01:19:02,070 --> 01:19:05,350
how I see it, right. 
It packages it in a digital way 

1442
01:19:05,750 --> 01:19:09,670
and it stores it in a digital 
way into space and time, right. 

1443
01:19:09,670 --> 01:19:13,550
So possibly into the future. 
And for me that's what that 

1444
01:19:13,550 --> 01:19:15,670
innovation is. 
So that combination of what you 

1445
01:19:15,670 --> 01:19:20,030
said, right, the actual proof of
work, you have to do work, you 

1446
01:19:20,030 --> 01:19:25,100
have to spend money or use 
energy, you capture that energy 

1447
01:19:25,100 --> 01:19:27,340
and that energy stays, but it's 
digital. 

1448
01:19:27,620 --> 01:19:30,340
I mean, like, even when I say 
this, it sounds so weird, right?

1449
01:19:30,340 --> 01:19:33,660
Like it's very hard. 
It's hard to understand that you

1450
01:19:33,660 --> 01:19:37,180
could digitalize physical 
energy, but right, that is 

1451
01:19:37,180 --> 01:19:39,580
basically what's happening. 
Right, apps, Well, apps. 

1452
01:19:39,580 --> 01:19:43,700
Look at El Salvador, El Salvador
has this, all these volcanoes 

1453
01:19:43,700 --> 01:19:47,220
that they could take advantage 
of that energy, but they don't 

1454
01:19:47,220 --> 01:19:50,220
have the infrastructure and they
don't have the demand from a 

1455
01:19:50,220 --> 01:19:52,380
population. 
So the reason that they don't 

1456
01:19:52,380 --> 01:19:54,730
have? 
Huge energy facilities in El 

1457
01:19:54,730 --> 01:19:57,130
Salvador is because number one, 
they never had the 

1458
01:19:57,130 --> 01:19:59,610
infrastructure because they 
never had the demand. 

1459
01:19:59,890 --> 01:20:02,490
So there was number way for them
to build all that stuff and then

1460
01:20:02,490 --> 01:20:06,090
sell the energy. 
But now with Bitcoin they can 

1461
01:20:06,090 --> 01:20:09,930
build a small infrastructure to 
capture that energy and then 

1462
01:20:09,930 --> 01:20:13,730
sell it back to the marketplace 
and that's what I think you 

1463
01:20:13,730 --> 01:20:17,010
define the world quite a ties 
perfectly worldwide marketplace.

1464
01:20:17,050 --> 01:20:19,370
Yeah. 
A worldwide marketplace with a 

1465
01:20:19,650 --> 01:20:23,260
tremendous base layer of demand.
A base layer of demand that's 

1466
01:20:23,260 --> 01:20:26,740
growing faster than any other 
base layer of demand in the 

1467
01:20:26,740 --> 01:20:30,060
world. 
As you know, Bitcoin base layer 

1468
01:20:30,060 --> 01:20:33,340
demand is growing faster than 
the Internet did, right? 

1469
01:20:33,340 --> 01:20:36,180
The pace of adoption of Bitcoin 
is actually outpacing the 

1470
01:20:36,180 --> 01:20:40,780
adoption of the Internet. 
So that is leading to the 

1471
01:20:40,780 --> 01:20:44,860
ability for countries to harness
power of electricity and 

1472
01:20:44,860 --> 01:20:46,820
electricity. 
We live in an electromagnetic 

1473
01:20:46,820 --> 01:20:48,900
universe. 
Electricity is all around us. 

1474
01:20:49,060 --> 01:20:51,980
We can now capture that 
electricity and we're 

1475
01:20:51,980 --> 01:20:55,220
incentivized by Bitcoin to 
capture it for the cheapest 

1476
01:20:55,220 --> 01:20:57,380
price. 
Now that could mean going to a 

1477
01:20:57,380 --> 01:21:00,340
place like El Salvador where you
get free energy, but it could 

1478
01:21:00,340 --> 01:21:04,420
also mean somewhere down the 
line somebody invents or 

1479
01:21:04,420 --> 01:21:09,020
upgrades an existing invention 
to be more efficient with the 

1480
01:21:09,020 --> 01:21:11,980
energy. 
So in that manner, Bitcoin is 

1481
01:21:11,980 --> 01:21:16,940
the only sustainable 
incentivized network in the 

1482
01:21:16,940 --> 01:21:20,740
world that is driving energy 
technology innovation. 

1483
01:21:21,240 --> 01:21:24,280
And I have to just add in there 
because you said wind and solar,

1484
01:21:24,520 --> 01:21:27,000
I am not a fan of wind and 
solar. 

1485
01:21:27,000 --> 01:21:29,440
I think that there it's just not
proportionate. 

1486
01:21:29,440 --> 01:21:32,080
Methane is my primary interests,
I think. 

1487
01:21:32,080 --> 01:21:36,160
So for Bitcoin miners, I think 
where our focus really is is #1.

1488
01:21:36,160 --> 01:21:42,320
It's nuclear #2, it's hydro #3, 
it's grid stabilization, and 

1489
01:21:42,320 --> 01:21:46,000
then #4 is waste. 
So if we can focus on those four

1490
01:21:46,000 --> 01:21:49,360
areas with Bitcoin mining, we're
going to actually produce much 

1491
01:21:49,360 --> 01:21:52,880
more positive outcomes in the 
world than if we attach 

1492
01:21:52,880 --> 01:21:56,600
ourselves to this green energy, 
solar, wind. 

1493
01:21:56,720 --> 01:22:01,360
Yes, using Bitcoin to supplement
the cost of solar and wind makes

1494
01:22:01,360 --> 01:22:05,920
it more affordable, but the real
thing is not Greenpeace, It's 

1495
01:22:05,920 --> 01:22:09,360
orange piece. 
Orange piece is let's supplement

1496
01:22:09,560 --> 01:22:13,800
nuclear, hydro, grid balancing 
and waste and those will being 

1497
01:22:14,000 --> 01:22:18,160
real benefits to our society 
versus of you know supporting a 

1498
01:22:18,160 --> 01:22:23,120
make believe narrative. 
But those reasons are created 

1499
01:22:23,120 --> 01:22:26,480
through the natural laws of 
economics, which start with 

1500
01:22:26,480 --> 01:22:31,440
lowering my cost so that I can 
profit more, and that the lower 

1501
01:22:31,440 --> 01:22:36,240
cost is the incentive to 
innovate different energy 

1502
01:22:36,240 --> 01:22:38,480
technologies. 
And there is nothing else in the

1503
01:22:38,480 --> 01:22:40,630
world doing that. 
Yes, I agree. 

1504
01:22:40,630 --> 01:22:45,510
I once replied to This is it, 
Maybe I'm going off track, but 

1505
01:22:45,510 --> 01:22:49,470
to Jason Lowry on Twitter, who 
has a thesis about that 

1506
01:22:51,310 --> 01:22:53,950
countries are going to like, 
there will always be war. 

1507
01:22:53,950 --> 01:22:55,910
There will always be a power 
struggle, right? 

1508
01:22:55,910 --> 01:22:59,790
But instead of using kinetic 
force or shooting guns and 

1509
01:22:59,790 --> 01:23:03,470
shooting not like dropping 
bombs, they're going to have 

1510
01:23:03,750 --> 01:23:06,270
hash wars, basically computer 
power wars. 

1511
01:23:06,710 --> 01:23:09,700
And I once replied to him. 
And said Okay. 

1512
01:23:09,700 --> 01:23:14,260
So if I follow your thoughts and
there's always wars, there's 

1513
01:23:14,260 --> 01:23:20,060
always power projection and 
we're going to fight wars with 

1514
01:23:20,060 --> 01:23:24,500
computer power. 
And so his thesis that's 

1515
01:23:24,500 --> 01:23:29,820
underlined with Bitcoin 
computing power, basically, I 

1516
01:23:29,820 --> 01:23:34,100
asked him, so does that mean 
that because minors are 

1517
01:23:34,100 --> 01:23:37,780
incentivized, you know, the 
people who create hash power are

1518
01:23:37,780 --> 01:23:41,550
incentivized? 
To look for the cheapest energy 

1519
01:23:41,550 --> 01:23:47,910
possible that will eventually 
result in new innovations, as 

1520
01:23:47,910 --> 01:23:51,750
you just mentioned, right. 
So then we're going to save the 

1521
01:23:51,750 --> 01:23:56,950
world by having war with each 
other, which is something that 

1522
01:23:56,950 --> 01:24:03,590
we cannot, cannot, not have, 
because there was always a power

1523
01:24:03,590 --> 01:24:04,590
struggle. 
There's always war. 

1524
01:24:05,200 --> 01:24:07,040
And then he agreed with me and 
then I was like, oh, that's 

1525
01:24:07,040 --> 01:24:08,840
interesting. 
I think I get, I get where 

1526
01:24:08,840 --> 01:24:14,240
you're going, but I I thought 
that was really a bit mind 

1527
01:24:14,240 --> 01:24:15,400
blowing to be honest. 
Right. 

1528
01:24:15,400 --> 01:24:17,440
Like like that you can take 
that. 

1529
01:24:17,440 --> 01:24:21,600
What is bad about humanity in a 
sense that power projection, 

1530
01:24:21,600 --> 01:24:25,600
that war, and then through a 
certain type of technology that 

1531
01:24:25,600 --> 01:24:29,920
incentivizes you to innovate to 
battle in that war or win that 

1532
01:24:29,920 --> 01:24:33,680
war, that's how you like, make 
the world better. 

1533
01:24:34,790 --> 01:24:36,710
Man, that was a really big, big 
thought. 

1534
01:24:36,710 --> 01:24:38,150
But that's what I had to think 
about what? 

1535
01:24:38,390 --> 01:24:42,630
Because of what you just said. 
And I I I still agree with it. 

1536
01:24:42,630 --> 01:24:45,630
Like I I find it very 
intriguing. 

1537
01:24:46,230 --> 01:24:50,870
The rebuttal to that then is I 
what I usually get is CJ, if 

1538
01:24:51,150 --> 01:24:54,710
it's going to create energy 
technology innovation and the 

1539
01:24:54,790 --> 01:24:57,830
and the overall cost of and 
price of energy is going to go 

1540
01:24:57,830 --> 01:25:02,230
down, well then doesn't that 
lower the value of Bitcoin 

1541
01:25:02,350 --> 01:25:04,430
because then the cost to produce
it goes down? 

1542
01:25:04,430 --> 01:25:07,350
If it's easier, yeah. 
But then this is where they have

1543
01:25:07,350 --> 01:25:09,950
to remember the difficulty 
adjustment because when you get 

1544
01:25:09,950 --> 01:25:13,390
into these hash wars and all 
this hash rate comes online, 

1545
01:25:13,710 --> 01:25:16,070
well, that's going to force the 
difficulty to go up. 

1546
01:25:16,270 --> 01:25:19,910
So yeah, the price of energy can
continue to go down and provide 

1547
01:25:19,910 --> 01:25:23,310
massive benefits to society, but
at the same time because the 

1548
01:25:23,310 --> 01:25:26,910
difficulty adjustment, the cost 
of production per Bitcoin, the 

1549
01:25:26,910 --> 01:25:31,130
natural asset value is still 
being protected because of that 

1550
01:25:31,130 --> 01:25:34,570
difficulty adjustment. 
So yeah, you can get it's a win 

1551
01:25:34,570 --> 01:25:37,530
win situation, so. 
Driven, Yeah. 

1552
01:25:37,530 --> 01:25:43,490
So even in a situation where the
energy would be free, let's say 

1553
01:25:43,490 --> 01:25:47,690
we can capture the ether energy 
in a sense with super, you know,

1554
01:25:47,690 --> 01:25:51,210
simple copper or whatever Tesla 
power stuff, let's say something

1555
01:25:51,210 --> 01:25:54,810
very basic, right? 
Even when the energy would be 

1556
01:25:54,810 --> 01:25:58,090
free. 
You still have, well, if there's

1557
01:25:58,090 --> 01:26:00,650
then more people mining, the 
difficulty will just go up 

1558
01:26:01,250 --> 01:26:04,730
infinitely, right? 
In that sense, does that make 

1559
01:26:04,730 --> 01:26:05,850
sense? 
Right, Absolutely. 

1560
01:26:05,850 --> 01:26:10,250
If that cost goes to 0, which 
it'll never be because you have 

1561
01:26:10,250 --> 01:26:16,370
to organize a space and people 
and there's some sort of cost in

1562
01:26:16,370 --> 01:26:21,650
operational cost in that sense. 
That's the answer to the 

1563
01:26:21,650 --> 01:26:26,260
question is even when the energy
is free, energy is just one line

1564
01:26:26,260 --> 01:26:28,780
item in my cost. 
I still have to pay my 

1565
01:26:28,780 --> 01:26:31,220
employees, I still have to rent 
the land, I still have to pay 

1566
01:26:31,220 --> 01:26:33,140
for my capital. 
There's a whole bunch of 

1567
01:26:33,140 --> 01:26:35,180
different costs that go into 
this. 

1568
01:26:35,180 --> 01:26:39,060
So if just one of those line 
items goes down to free in the 

1569
01:26:39,060 --> 01:26:42,300
form of energy, that doesn't get
rid of my other line items. 

1570
01:26:42,860 --> 01:26:47,460
So there's always going to be a 
natural asset value relative to 

1571
01:26:47,460 --> 01:26:51,540
the cost that acts as a floor 
price for the value proposition.

1572
01:26:51,540 --> 01:26:54,910
That's the that's the other 
thing floor price for what for 

1573
01:26:54,910 --> 01:26:58,790
the value proposition do we need
a money that? 

1574
01:26:58,790 --> 01:27:00,910
Protects money backed by 
something, Yes, right. 

1575
01:27:01,030 --> 01:27:05,070
Do we need a digital comma? 
Do we need commoditized energy 

1576
01:27:05,070 --> 01:27:08,590
in the form of money that allows
us to save and store our value 

1577
01:27:08,590 --> 01:27:11,390
through time and space that 
nobody else can dilute? 

1578
01:27:11,590 --> 01:27:13,390
Is that a value probable 
decision to? 

1579
01:27:13,630 --> 01:27:15,990
Of course you can transact with 
anyone in the world. 

1580
01:27:15,990 --> 01:27:18,830
Permission less, a religious, 
all these things, all the 

1581
01:27:18,830 --> 01:27:21,710
benefits of Bitcoin, that's the 
value proposition. 

1582
01:27:21,830 --> 01:27:23,870
What is the value proposition 
worth? 

1583
01:27:23,910 --> 01:27:28,750
Remember, if the marketplace was
going to deny Bitcoin and reject

1584
01:27:28,750 --> 01:27:31,310
Bitcoin, then what? 
You would see it in the form of 

1585
01:27:31,310 --> 01:27:34,590
price because people wouldn't be
willing to pay 27,000. 

1586
01:27:34,870 --> 01:27:37,070
They'd be say, I'm not paying 
that much because I'm not 

1587
01:27:37,070 --> 01:27:40,190
getting any value for that. 
Well, today the marketplace 

1588
01:27:40,190 --> 01:27:42,470
isn't saying that at all because
look at the profitability of 

1589
01:27:42,470 --> 01:27:45,360
minors. 
They're saying, hey, I need you.

1590
01:27:45,600 --> 01:27:45,920
Yeah. 
What? 

1591
01:27:45,920 --> 01:27:48,840
You're what, you're producing. 
Yeah, though, because I need 

1592
01:27:48,840 --> 01:27:51,160
what you're producing and it's 
solving my problem. 

1593
01:27:51,320 --> 01:27:55,040
And the value proposition of 
your solution to my problem is 

1594
01:27:55,040 --> 01:27:58,240
worth me paying a price that 
creates profit for you. 

1595
01:27:58,800 --> 01:28:02,600
That's the that's the free 
market signaling the acceptance 

1596
01:28:02,640 --> 01:28:05,360
of Bitcoin. 
If we if it went the other way, 

1597
01:28:05,640 --> 01:28:08,320
then the price went below costs.
Miners would turn off, 

1598
01:28:08,320 --> 01:28:11,280
difficulty would go down. 
You get into that whole thing. 

1599
01:28:11,650 --> 01:28:14,850
But this is a textbook. 
Explainer I'd say yeah, textbook

1600
01:28:14,850 --> 01:28:18,610
explainer for for our product 
market fit type of situation. 

1601
01:28:18,650 --> 01:28:21,650
Exactly. 
So you know how our prices, how 

1602
01:28:21,650 --> 01:28:23,890
our price is discovered. 
That's probably one of the If 

1603
01:28:23,890 --> 01:28:26,170
you are looking up anything, 
let's say you've read about 

1604
01:28:26,170 --> 01:28:28,570
Bitcoin, you read the white 
paper, you've read a couple 

1605
01:28:28,570 --> 01:28:29,610
books, and you're like, all 
right. 

1606
01:28:30,130 --> 01:28:31,810
I feel like there's nothing else
I can learn. 

1607
01:28:32,330 --> 01:28:35,570
Here's something that's a great 
topic for people to study price 

1608
01:28:35,570 --> 01:28:39,050
discovery. 
Look up and look into how free 

1609
01:28:39,050 --> 01:28:42,430
market price discovery works. 
So if you're a business owner, 

1610
01:28:42,430 --> 01:28:45,990
if you're an entrepreneur, how 
are you deciding what your price

1611
01:28:45,990 --> 01:28:49,110
is? 
Answer that question and Bitcoin

1612
01:28:49,110 --> 01:28:50,950
will start to make a lot more 
sense. 

1613
01:28:51,150 --> 01:28:54,550
The at least the price action, 
the price action of Bitcoin when

1614
01:28:54,550 --> 01:28:57,870
it's at its commodity value on 
the bottom half of this S curve 

1615
01:28:58,070 --> 01:29:01,590
will start to make a lot more 
sense because you can be defined

1616
01:29:01,590 --> 01:29:05,270
as a free market price discovery
cycle rather than just like 

1617
01:29:05,470 --> 01:29:08,040
volatility, right? 
Because that's what, oh, 

1618
01:29:08,040 --> 01:29:10,400
Bitcoin, so volatile? 
No, it's going through price 

1619
01:29:10,400 --> 01:29:12,520
discovery. 
We're trying to discover the 

1620
01:29:12,520 --> 01:29:16,360
value of the underlying 
proposition, the value of the 

1621
01:29:16,360 --> 01:29:19,920
solution to everybody's problem.
And we haven't arrived at that 

1622
01:29:19,920 --> 01:29:21,920
number yet. 
And we won't until we get to the

1623
01:29:21,920 --> 01:29:25,440
top of the S curve. 
And at by that time it's too 

1624
01:29:25,440 --> 01:29:27,560
late because we won't even keep 
track and Bitcoin. 

1625
01:29:27,560 --> 01:29:31,120
We'll keep track in Satoshi's. 
I love that. 

1626
01:29:31,120 --> 01:29:34,680
That's a great point. 
So we've been talking for 1 1/2 

1627
01:29:34,760 --> 01:29:36,830
hours. 
Which is great. 

1628
01:29:37,070 --> 01:29:40,310
I love it. 
I wanna move on to my last 

1629
01:29:40,310 --> 01:29:43,110
question, which I asked to 
everyone. 

1630
01:29:43,990 --> 01:29:46,750
What's a core belief that you 
will never let go? 

1631
01:29:52,990 --> 01:29:56,950
That's a hard question. 
And it's even more embarrassing 

1632
01:29:56,950 --> 01:29:59,430
cuz you told me it earlier so I 
had time to think about it. 

1633
01:30:00,870 --> 01:30:08,300
But I think a core value that I 
have that I just can never be 

1634
01:30:08,300 --> 01:30:11,940
explained away or given away is 
the concept of a true free 

1635
01:30:11,940 --> 01:30:14,700
market. 
That's that's really what I 

1636
01:30:14,700 --> 01:30:18,700
think empowers Bitcoin. 
I think, you know, Bitcoin wins 

1637
01:30:18,700 --> 01:30:21,980
because it's free market. 
And and what do I mean by that? 

1638
01:30:21,980 --> 01:30:26,180
I mean everything we just talked
about the the natural asset 

1639
01:30:26,180 --> 01:30:29,760
value the the way that the price
discovery works on Bitcoin, the 

1640
01:30:29,760 --> 01:30:32,320
way that interest rates work on 
Bitcoin right. 

1641
01:30:32,320 --> 01:30:36,840
Price discovery works on cost 
and profit, interest rates work 

1642
01:30:36,840 --> 01:30:40,640
on the supply of money and the 
demand on loans price works on 

1643
01:30:40,840 --> 01:30:43,800
the the variables in demand as 
we go through bull and bear 

1644
01:30:43,800 --> 01:30:47,040
cycles. 
These free market concepts are 

1645
01:30:47,040 --> 01:30:52,800
what empowers Bitcoin to out 
compete anything else that the 

1646
01:30:52,800 --> 01:30:54,160
the rest of the world has to 
offer. 

1647
01:30:54,160 --> 01:30:56,960
Because we're in the position 
today where the rest of the 

1648
01:30:56,960 --> 01:31:02,300
world has decided we are smarter
than the free market, we can 

1649
01:31:02,300 --> 01:31:04,820
figure this out better than the 
market can figure it out. 

1650
01:31:05,100 --> 01:31:09,300
And I I could not disagree with 
that statement more. 

1651
01:31:09,660 --> 01:31:13,660
I don't think any human or team 
of humans or conglomerate of 

1652
01:31:13,660 --> 01:31:17,100
humans or conglomerate of 
central banks, the Bank of 

1653
01:31:17,100 --> 01:31:18,700
internationals, the 
international Monet, I don't 

1654
01:31:18,700 --> 01:31:23,740
think any of these people can 
collaborate and figure out what 

1655
01:31:23,740 --> 01:31:26,770
a price should be. 
I think that free market 

1656
01:31:26,770 --> 01:31:30,650
principles based on supply and 
demand not only of the good and 

1657
01:31:30,650 --> 01:31:34,530
service but of the money and or 
currency that's being used to 

1658
01:31:34,530 --> 01:31:38,930
buy that good or service. 
Those are the principles that 

1659
01:31:40,090 --> 01:31:42,890
are protected by the natural 
laws of economics. 

1660
01:31:42,890 --> 01:31:47,210
And trying to change those laws,
trying to state the rate of 

1661
01:31:47,210 --> 01:31:51,560
interest and trying to outsmart 
the free market is kind of like 

1662
01:31:51,560 --> 01:31:55,000
trying to change the laws of 
mathematics or change the laws 

1663
01:31:55,000 --> 01:31:57,160
of gravity. 
You know, like if I take my 

1664
01:31:57,160 --> 01:32:00,320
phone and just throw it up, I 
can't just say that my phone's 

1665
01:32:00,320 --> 01:32:01,880
not going to fall back down to 
the ground. 

1666
01:32:02,360 --> 01:32:05,800
It's heavier than the, you know,
there's natural laws of physics 

1667
01:32:05,800 --> 01:32:08,240
that are going to guarantee that
this phone comes back down to 

1668
01:32:08,240 --> 01:32:10,040
the ground. 
You can't change those laws. 

1669
01:32:10,400 --> 01:32:12,800
You can't change the natural 
laws of economics. 

1670
01:32:12,960 --> 01:32:17,360
And Bitcoin, through its design,
strategically leverages those 

1671
01:32:17,360 --> 01:32:21,880
laws to empower we the people. 
I love it, man. 

1672
01:32:21,880 --> 01:32:24,640
Thanks for sharing and thanks 
for coming on. 

1673
01:32:24,640 --> 01:32:28,400
I really enjoyed this. 
I think we we went deep and 

1674
01:32:28,400 --> 01:32:30,480
everywhere. 
So that's nice. 

1675
01:32:31,840 --> 01:32:34,360
Yeah. 
Where where can people find more

1676
01:32:34,360 --> 01:32:38,320
of your thoughts and writings? 
And you also have a YouTube 

1677
01:32:38,320 --> 01:32:40,560
channel. 
Yeah. 

1678
01:32:40,880 --> 01:32:42,200
Yeah. 
Well, thank you so much for 

1679
01:32:42,200 --> 01:32:43,360
having me. 
I really enjoyed the 

1680
01:32:43,360 --> 01:32:46,960
conversation and I apologize. 
I can, I can go off in so many 

1681
01:32:46,960 --> 01:32:48,920
different directions. 
So I appreciate everybody's 

1682
01:32:48,920 --> 01:32:51,240
patience, but if you're 
interested in hearing more about

1683
01:32:51,240 --> 01:32:54,600
my thesis of Bitcoin as 
commoditized energy in the form 

1684
01:32:54,600 --> 01:32:57,840
of money, the reserve asset of 
the Internet economy and the 

1685
01:32:57,840 --> 01:33:00,680
most pristine form of collateral
in the world, then you can just 

1686
01:33:00,680 --> 01:33:03,400
follow me on Twitter at CJ 
Constantinos. 

1687
01:33:04,000 --> 01:33:07,840
I did recently launched a 
YouTube channel, mainly it just 

1688
01:33:07,840 --> 01:33:10,720
has interviews like this, but 
hopefully I'll be able to start 

1689
01:33:10,960 --> 01:33:14,120
creating content soon. 
So yeah, Twitter and YouTube are

1690
01:33:14,120 --> 01:33:16,080
the best places to to follow 
along. 

1691
01:33:17,280 --> 01:33:19,720
Awesome man. 
Thanks again and let's keep in 

1692
01:33:19,720 --> 01:33:20,720
touch. 
Thank you. 

1693
01:33:21,600 --> 01:33:24,440
Cheers. 
I hope you enjoyed this episode.

1694
01:33:24,440 --> 01:33:27,440
If you did, it would be amazing 
if you could rate, review and 

1695
01:33:27,440 --> 01:33:30,000
subscribe on the podcast 
platform of your choice. 

1696
01:33:30,280 --> 01:33:32,960
It will help us educate more 
millennials on the importance of

1697
01:33:32,960 --> 01:33:35,000
Bitcoin. 
You can follow and connect with 

1698
01:33:35,000 --> 01:33:38,320
me on Twitter. 
I'm Bramk, that's at bramk. 

1699
01:33:38,880 --> 01:33:41,000
And if you are or know someone 
who has an interesting 

1700
01:33:41,000 --> 01:33:43,480
perspective on Bitcoin that's 
worth sharing, hit me up. 

1701
01:33:43,800 --> 01:33:45,560
I read and reply to every single
message. 

1702
01:33:45,990 --> 01:33:48,350
Appreciate your support and hope
you'll be here for the next 

1703
01:33:48,350 --> 01:33:49,830
episode. 
Thanks for listening. 

1704
01:33:50,110 --> 01:33:50,310
Bye.