1 00:00:00,000 --> 00:00:11,920 Music. 2 00:00:11,768 --> 00:00:15,848 Welcome in to This Week in Bitcoin, episode 59. My name is Chris. 3 00:00:17,008 --> 00:00:22,008 ChrisLAS.com. JupiterBroadcasting.com. I can't believe I'm saying this, 4 00:00:22,128 --> 00:00:26,788 but it seems like the thing that Bitcoiners have been saying would happen for 5 00:00:26,788 --> 00:00:29,748 years, I would say obsessing over for years, 6 00:00:30,248 --> 00:00:31,848 probably feeling a little crazy 7 00:00:31,848 --> 00:00:35,688 the rest of the world wasn't seeing it for years, is finally being seen. 8 00:00:35,888 --> 00:00:40,148 And the dialogue, the discussion, whatever you will, is changing in big ways. 9 00:00:40,148 --> 00:00:45,328 And personally, I think it really accelerated when Elon returned back to private 10 00:00:45,328 --> 00:00:50,068 life and the conversation around the success and failure of Doge picked up. 11 00:00:50,348 --> 00:00:53,128 And I was saying I was pretty skeptical of the overall Doge results. 12 00:00:53,428 --> 00:00:56,808 I think the results are still yet to be fully seen, but it doesn't seem to be 13 00:00:56,808 --> 00:00:58,808 nearly what people were hoping it would be. 14 00:00:59,288 --> 00:01:04,928 And that sort of doomerism is creeping in to the overall discussion around the 15 00:01:04,928 --> 00:01:07,148 entire Western fiscal situation. 16 00:01:07,148 --> 00:01:11,248 I mean, financial wonks and mainstream media that never talked about this stuff 17 00:01:11,248 --> 00:01:17,828 are now just knowingly and openly acknowledging just fundamental issues that were just third rail. 18 00:01:18,228 --> 00:01:21,408 Don't talk about these types of things that only Bitcoiners and, 19 00:01:21,528 --> 00:01:25,108 well, of course, some gold bugs would bring up. Had emerged from World War Two. 20 00:01:25,428 --> 00:01:29,928 This is Jay Powell in a speech this week. It's a global economic superpower. 21 00:01:30,568 --> 00:01:36,068 The Bretton Woods Agreement placed the U.S. and the Fed in a central position in the global economy. 22 00:01:37,148 --> 00:01:40,648 Our mission then, as it is now, was to serve the American people. 23 00:01:41,935 --> 00:01:45,655 But it was clear at that moment that the Fed needed to have better knowledge 24 00:01:45,655 --> 00:01:49,115 of global developments to achieve our dual mandate goals. 25 00:01:49,515 --> 00:01:53,475 A 1948 memo proposing to create the division stated, 26 00:01:53,835 --> 00:01:58,635 quoting, Problems of international economics and finance have become increasingly large, 27 00:01:58,815 --> 00:02:03,355 complex and significant in recent years, and our foreign economic relations 28 00:02:03,355 --> 00:02:09,295 will undoubtedly continue to give rise to issues of the first magnitude. Now, why is J. 29 00:02:09,375 --> 00:02:12,955 Powell quoting this economic forecast from, I think he said, the 1940s? 30 00:02:13,635 --> 00:02:17,535 Problems of international economics and finance have become increasingly large, 31 00:02:17,935 --> 00:02:22,255 complex and significant in recent years, and our foreign economic relations 32 00:02:22,255 --> 00:02:26,855 will undoubtedly continue to give rise to issues of the first magnitude. 33 00:02:27,415 --> 00:02:30,915 That rare economic forecast that has turned out to be spot on. 34 00:02:31,475 --> 00:02:34,535 J-Pow is saying this is the very problem we're facing right now. 35 00:02:34,635 --> 00:02:36,695 This is the chair of the Federal Reserve. 36 00:02:36,935 --> 00:02:41,915 And he's saying this that was predicted at the end of the 1940s is playing out right now. 37 00:02:42,195 --> 00:02:46,995 We knew this was going to be an issue post Bretton Woods. The first magnitude. 38 00:02:47,595 --> 00:02:51,035 That rare economic forecast that has turned out to be spot on. 39 00:02:52,315 --> 00:02:56,835 75 years later, it remains critical that the Fed understand the policies and 40 00:02:56,835 --> 00:03:01,675 practices of other governments and central banks and their implications for the U.S. 41 00:03:01,795 --> 00:03:04,595 Economy and for financial markets, i.e. China. 42 00:03:05,595 --> 00:03:09,495 Exchange rate policy, of course, is now firmly in the hands of the U.S. Treasury. 43 00:03:10,095 --> 00:03:15,275 However, the end of the Bretton Woods era in the 1970s fundamentally changed 44 00:03:15,275 --> 00:03:19,795 the conduct of monetary policy as policymakers had to understand the effects 45 00:03:19,795 --> 00:03:22,215 of potentially more volatile movements of the U.S. 46 00:03:22,295 --> 00:03:24,675 Dollar on American families and businesses. 47 00:03:24,915 --> 00:03:29,175 In other words, it hasn't been good for the U.S. consumer. Listen to what he's 48 00:03:29,175 --> 00:03:31,935 saying here. He's saying post-1971... 49 00:03:33,005 --> 00:03:37,805 The fluctuations and dynamics in the dollar market have been bad for the middle 50 00:03:37,805 --> 00:03:40,545 class, which has been challenging for the Fed with their dual mandate. 51 00:03:40,825 --> 00:03:42,525 Firmly in the hands of the U.S. Treasury. 52 00:03:43,125 --> 00:03:48,305 However, the end of the Bretton Woods era in the 1970s fundamentally changed 53 00:03:48,305 --> 00:03:52,785 the conduct of monetary policy, as policymakers had to understand the effects 54 00:03:52,785 --> 00:03:55,225 of potentially more volatile movements of the U.S. 55 00:03:55,325 --> 00:03:57,725 Dollar on American families and businesses. 56 00:03:58,705 --> 00:04:02,625 Understanding global trade and capital movements has only grown in importance 57 00:04:02,625 --> 00:04:05,765 since 1950, as we saw during the pandemic. 58 00:04:05,985 --> 00:04:11,045 This is really wild because to summarize what the Fed chair is saying is he's 59 00:04:11,045 --> 00:04:14,405 saying WTF happened in 1971.com. 60 00:04:14,825 --> 00:04:18,325 And amazingly, from the top down, from the White House, from the Fed chair, 61 00:04:18,625 --> 00:04:22,805 from high profile analysts, we're seeing a shift in acknowledging the reality 62 00:04:22,805 --> 00:04:26,025 of the cost of being the reserve currency for the United States. 63 00:04:26,025 --> 00:04:29,625 This week, Jamie McIver or Giever, I'm not sure. 64 00:04:29,865 --> 00:04:33,285 I've only read the name, but they're a financial analyst who's been pretty well 65 00:04:33,285 --> 00:04:34,885 respected since the late 90s. 66 00:04:35,005 --> 00:04:38,505 They've been in and out of different areas of high mucky muck economics. 67 00:04:38,905 --> 00:04:43,385 And they wrote an article titled Historic Dollar Fall Needed to Eliminate U.S. 68 00:04:43,485 --> 00:04:46,825 Trade Deficit This Week. And this article I'll link to in the show notes, 69 00:04:46,905 --> 00:04:52,745 it explores the idea of the reality around the necessity of significantly weakening the U.S. 70 00:04:52,845 --> 00:04:57,345 Dollar and how it may be the only viable route to reducing or eliminating as 71 00:04:57,345 --> 00:05:03,465 much as possible the trade deficit, which has clearly become a key goal of Trump's economic policy. 72 00:05:03,465 --> 00:05:08,905 And in the article, he quotes economists that estimate that to really achieve 73 00:05:08,905 --> 00:05:15,265 this reduction in the trade deficit, you'd need somewhere between a 20 to 30 74 00:05:15,265 --> 00:05:16,925 percent depreciation of the dollar. 75 00:05:17,909 --> 00:05:23,109 20 to 30% depreciation. And they also note that that's rarely been achieved 76 00:05:23,109 --> 00:05:24,909 without triggering a recession. 77 00:05:25,089 --> 00:05:27,909 So you'd really have to have a scream in GDP. 78 00:05:28,869 --> 00:05:35,129 And in 1985 to 87, there was a major dollar fall and it helped the deficit then. 79 00:05:35,129 --> 00:05:39,569 So we do have a historical example from 85 to 87 where we saw this happen. 80 00:05:40,189 --> 00:05:45,109 But in order to make it not hurt like hell, you're going to have to have blowout GDP numbers. 81 00:05:45,429 --> 00:05:49,669 And GDP numbers are looking better than estimated. I was impressed when I took 82 00:05:49,669 --> 00:05:51,709 a little peek, but we're still not at blowout. 83 00:06:01,989 --> 00:06:08,769 So why do I bring all this up? The reason is, is I have a basic thesis that 84 00:06:08,769 --> 00:06:14,709 outside of corporate treasury purchasing seeing all around the world, 85 00:06:14,889 --> 00:06:17,209 like Meta, Strategy, and others, 86 00:06:17,429 --> 00:06:21,529 and Sovereign Reserves that you'll see nations set up, the primary driver of 87 00:06:21,529 --> 00:06:26,309 Bitcoin adoption and price action is going to be U.S. 88 00:06:26,429 --> 00:06:31,589 Policy, or I should say the second order effects of U.S. 89 00:06:32,069 --> 00:06:36,469 Policy. Like right now, just to zoom out a little bit, you're seeing fireworks 90 00:06:36,469 --> 00:06:37,809 around this big, beautiful bill. 91 00:06:38,289 --> 00:06:41,549 House Republicans have a legislative package they put together, 92 00:06:41,549 --> 00:06:44,849 they sent it to the Senate, and now the Senate is divided. 93 00:06:45,469 --> 00:06:49,169 You're seeing Ron Johnson and Rand Paul and others come out, 94 00:06:49,369 --> 00:06:51,969 and Elon Musk strongly say they don't like it. 95 00:06:52,069 --> 00:06:55,369 You're seeing others, like the Speaker, saying, you don't understand, 96 00:06:55,369 --> 00:06:59,729 you don't understand, this is actually necessary, and you can't go by the numbers you're using. 97 00:07:00,089 --> 00:07:04,409 I mention all of this because I don't think Bitcoiners should sleep on this situation. 98 00:07:05,576 --> 00:07:10,616 It's not by accident that the second order effects of this bill are going to weaken the U.S. dollar. 99 00:07:10,776 --> 00:07:13,896 So the bill's got around a $3.8 trillion tax cut or extension, 100 00:07:14,356 --> 00:07:19,276 which will worsen federal deficit, which will weaken the dollar. 101 00:07:19,516 --> 00:07:22,636 And large deficits often lead to inflation or higher interest rates, 102 00:07:22,776 --> 00:07:24,736 which then also erode currency value. 103 00:07:25,076 --> 00:07:30,376 And it's clear that the White House has said they really want to lock in a few things with this bill. 104 00:07:30,496 --> 00:07:34,276 They have a few big goals and it's going to add to the deficit. 105 00:07:34,276 --> 00:07:39,536 They appear to be willing to accept the risk of dollar devaluation wholeheartedly. 106 00:07:40,076 --> 00:07:46,076 And as I covered last week, it seems like the White House has mostly given up on spending cuts. 107 00:07:46,356 --> 00:07:49,456 And I mean, there'll be some here and there, no doubt about it, 108 00:07:49,536 --> 00:07:52,116 especially when you consider reduction in federal staffing. 109 00:07:52,556 --> 00:07:56,896 But at the same time, that same White House is flirting and trying to get through 110 00:07:56,896 --> 00:07:58,976 a trillion dollar defense budget. 111 00:07:59,976 --> 00:08:06,496 So let's be real here. Their hope is to stoke spending with military building, 112 00:08:06,776 --> 00:08:11,916 to stoke businesses by getting liquidity down and consumer spending by reducing taxes. 113 00:08:12,596 --> 00:08:17,756 And the reality is the second order effects of all of this will create more 114 00:08:17,756 --> 00:08:19,356 market demand for Bitcoin. 115 00:08:19,616 --> 00:08:22,716 And that's why even if you're outside the United States, don't sleep on what 116 00:08:22,716 --> 00:08:27,676 happens with this quote unquote big, beautiful bill, because the outcome is 117 00:08:27,676 --> 00:08:30,096 going to be increased Bitcoin adoption. 118 00:08:30,516 --> 00:08:38,436 Lynn Alden did a great job of putting this into context during her Bitcoin 2025 conference talk. 119 00:08:39,096 --> 00:08:43,136 Glad I wasn't giving a talk. That was a mess. I don't like the name. 120 00:08:43,256 --> 00:08:46,296 I'm going to be honest with you. I don't like calling it the Bitcoin 2025. 121 00:08:46,776 --> 00:08:49,756 It's a Bitcoin conference, but whatever. It's a Bitcoin magazine conference. 122 00:08:50,256 --> 00:08:53,556 But Lynn Alden had a talk, you know, and it was nothing stops this train. 123 00:08:54,356 --> 00:08:57,836 The lever you have pulled breaks is not in service. 124 00:08:58,096 --> 00:09:01,636 Please make a note of it. Shut up. I'll put the entire talk in the show notes 125 00:09:01,636 --> 00:09:04,736 because she does have some nice charts that she will briefly refer to. 126 00:09:05,056 --> 00:09:07,956 In this clip, she does a fine job of describing the charts and they're really 127 00:09:07,956 --> 00:09:09,756 secondary to her overall message. 128 00:09:09,916 --> 00:09:13,416 But this is only a bit of her talk. I recommend you listen to the entire thing, 129 00:09:13,516 --> 00:09:14,676 which is linked in the show notes. 130 00:09:14,896 --> 00:09:19,316 But this beautifully puts everything I've just been saying into better context, I think. 131 00:09:19,896 --> 00:09:24,556 One of my last slides is to emphasize the Ponzi nature of the system. 132 00:09:25,136 --> 00:09:29,576 So even aside from current issues related to demographics and debt levels, 133 00:09:29,956 --> 00:09:33,976 basically the way the system's constructed, and by the system I mean central 134 00:09:33,976 --> 00:09:37,336 banking with fractional reserve banking built on top of it, the whole fiat system 135 00:09:37,336 --> 00:09:41,396 we've been kind of operating under for over a century, relies on constant growth. 136 00:09:41,676 --> 00:09:44,896 It's like a shark that can't stop swimming, otherwise it drowns, 137 00:09:44,956 --> 00:09:47,236 ironically. It's a system that has to keep increasing. 138 00:09:47,676 --> 00:09:52,236 And so on this chart, the top line is total debt in the system, in the U.S. 139 00:09:52,456 --> 00:09:56,296 System. So that's public debt and private debt combined, and it's actually over 140 00:09:56,296 --> 00:09:58,316 $100 trillion for the first time. 141 00:09:58,656 --> 00:10:00,916 And the bottom line is the monetary base. 142 00:10:02,371 --> 00:10:05,811 And what we see is that for the entire period of this chart, 143 00:10:05,971 --> 00:10:11,651 so this goes, I believe, from 1966 until 2025, the entire period of this chart, 144 00:10:12,111 --> 00:10:16,871 total debt never went down except for one very brief exception, and that was 2008. 145 00:10:17,051 --> 00:10:20,131 And it went down by about 1% total debt in the system. 146 00:10:20,351 --> 00:10:24,391 So that's a key thing to understand, is that there was a brief period of time 147 00:10:24,391 --> 00:10:28,871 where debt went down, but otherwise, debt's always been going up. 148 00:10:28,871 --> 00:10:33,871 And what they did was they rapidly increased the monetary base from $1 trillion 149 00:10:33,871 --> 00:10:35,791 to, right now, about $6 trillion. 150 00:10:36,631 --> 00:10:41,571 It was so impossible for them to let even a tiny amount of deleveraging occur 151 00:10:41,571 --> 00:10:43,571 that they kept the party going. 152 00:10:44,431 --> 00:10:47,611 And specifically back in that time, so if we do the math a little bit, 153 00:10:47,631 --> 00:10:52,011 in 2008, the total debt in the system was in the ballpark of $50 trillion. 154 00:10:52,511 --> 00:10:56,611 So it's about half as big as it is now. And they were on a monetary base of about $1 trillion. 155 00:10:57,031 --> 00:11:01,571 So the system is levered 50 to 1. That's the type of leverage you see in crypto 156 00:11:01,571 --> 00:11:03,271 degen derivatives contracts. 157 00:11:03,491 --> 00:11:06,751 It was 50 to 1 leverage across the economy. 158 00:11:07,531 --> 00:11:11,051 And specifically, they hit zero interest rates. So they couldn't keep propping 159 00:11:11,051 --> 00:11:12,811 up the private sector debt bubble. 160 00:11:13,451 --> 00:11:18,031 And instead, they rotated to the federal level. And so that kind of shows how 161 00:11:18,031 --> 00:11:19,411 sensitive the system is. 162 00:11:19,631 --> 00:11:24,111 As you've kind of gone forward, we're now more in the public sector debt growth. 163 00:11:24,451 --> 00:11:27,731 I actually looked at the data that goes back even longer than this chart, 164 00:11:27,731 --> 00:11:32,231 going back about 110 years, and there were only four other years where the total 165 00:11:32,231 --> 00:11:35,731 debt level ever went down nominally, and that was during the Great Depression. 166 00:11:36,231 --> 00:11:42,311 So 1930 through 1934 was the only other period besides 2008 on the chart where it went down. 167 00:11:42,551 --> 00:11:48,011 So five years out of over 110 years of data is their tolerance level for ever 168 00:11:48,011 --> 00:11:49,291 letting that Ponzi unravel. 169 00:11:50,291 --> 00:11:54,331 And that's just kind of the system, that's the math that we find ourselves operating 170 00:11:54,331 --> 00:11:57,091 in, and that's the big contrast that we have to Bitcoin. 171 00:11:58,059 --> 00:12:00,839 So for my last slide, we don't have to focus on the details here, 172 00:12:01,099 --> 00:12:05,979 but just by looking at the shape of these charts, these are century-long charts. 173 00:12:06,219 --> 00:12:09,779 And so my main point with these charts is we've actually seen this story before. 174 00:12:10,139 --> 00:12:13,659 We've gone through something like what we're going through now in the U.S. 175 00:12:13,799 --> 00:12:16,519 One time in the past, and that was around the 1940s. 176 00:12:16,739 --> 00:12:21,559 So the reason that debt growth is so smooth historically is because when they 177 00:12:21,559 --> 00:12:25,579 do finally run into something that actually challenges it, they rotate the whole 178 00:12:25,579 --> 00:12:29,059 system around, and we're going through it for the second time. 179 00:12:29,419 --> 00:12:33,939 So basically, you have a private debt bubble buildup, and then you hit zero 180 00:12:33,939 --> 00:12:38,899 interest rates, so you can't keep adding more and more on to the accelerating private debt growth. 181 00:12:39,139 --> 00:12:44,039 And then what happens is you find yourself levered 50 to 1, and you start to unravel. 182 00:12:44,299 --> 00:12:47,819 And how do you unravel a system that's levered 50 to 1? 183 00:12:48,119 --> 00:12:51,979 The short answer is you don't. You just print more base units is how they always handle it. 184 00:12:51,979 --> 00:12:55,939 So what that happens, they switch over to federal debt growth, 185 00:12:55,979 --> 00:13:00,899 and they switch over to running massive federal deficits, so that even as private 186 00:13:00,899 --> 00:13:04,259 sector debt levels eventually kind of mellow out for a period of time, 187 00:13:04,559 --> 00:13:06,379 it keeps growing on the public side. 188 00:13:06,519 --> 00:13:09,979 And that tends to be more inflationary, and that tends to be more persistent. 189 00:13:10,499 --> 00:13:14,099 Because as we get to the point that I mentioned before, when the Fed raises 190 00:13:14,099 --> 00:13:18,059 interest rates to try to slow any of this down, they blow out the federal deficit 191 00:13:18,059 --> 00:13:20,399 at a faster rate than they slow down bank growth. 192 00:13:21,059 --> 00:13:25,559 So basically, we're completely off the tracks now. And notice nothing I said 193 00:13:25,559 --> 00:13:28,179 is anything about Weimar, nothing's about hyperinflation. 194 00:13:28,399 --> 00:13:34,119 It's all about basically long-term, unceasing 7% deficit growth. 195 00:13:34,399 --> 00:13:38,119 We're not talking about 70% deficits of GDP, we're talking about 7%, 196 00:13:38,119 --> 00:13:40,579 but it's every single year like clockwork. 197 00:13:40,759 --> 00:13:42,679 It's the relentlessness of it that matters. 198 00:13:43,279 --> 00:13:47,899 And so as we go forward, this is the system that Bitcoin's going to exist in. 199 00:13:48,619 --> 00:13:51,759 And if you kind of summarize this whole talk, all these charts, 200 00:13:51,939 --> 00:13:55,819 all these points, there's two main reasons why nothing stops this train. 201 00:13:56,379 --> 00:14:00,799 One is math. The way that they've constructed the Ponzi system that I've talked 202 00:14:00,799 --> 00:14:05,579 about before, the way that it has to always continue growing to ever not start 203 00:14:05,579 --> 00:14:08,099 deleveraging in the crazy way that it would. 204 00:14:08,359 --> 00:14:12,979 So that's the system that they've built. And two, the second reason is human nature. 205 00:14:13,539 --> 00:14:17,379 None of us want to pay higher taxes. people that are on the receiving side of 206 00:14:17,379 --> 00:14:21,919 deficits never want to cut them virtually no politician is ever incentivized 207 00:14:21,919 --> 00:14:24,939 enough to actually cut deficits during their term. 208 00:14:25,958 --> 00:14:31,358 And basically, this represents a flexible ledger. This is the ledger that we 209 00:14:31,358 --> 00:14:33,698 all kind of work with in the US and globally. 210 00:14:34,278 --> 00:14:38,018 And because it's a flexible ledger, they can always create more units. 211 00:14:38,338 --> 00:14:42,858 And therefore, that's the error correction that they keep falling back on over and over again. 212 00:14:43,438 --> 00:14:46,258 And that's what contrasts with Bitcoin. Bitcoin is, you know, 213 00:14:46,378 --> 00:14:49,878 the complete opposite of the system in many ways. It's the mirror of the system. 214 00:14:50,458 --> 00:14:54,958 Instead of ever-increasing units, and indeed ever-increasing units that can't 215 00:14:54,958 --> 00:14:57,758 even slow down, Bitcoin is absolute scarcity. 216 00:14:58,298 --> 00:15:03,118 And instead of opaqueness, it's transparent. And instead of the error correction 217 00:15:03,118 --> 00:15:07,158 being able to just print more units, the error correction that happens in Bitcoin 218 00:15:07,158 --> 00:15:10,818 is deleveraging can happen, but you can never go after the unit itself. 219 00:15:11,358 --> 00:15:15,338 So basically, nothing stops this train. For the next 10 years, 220 00:15:15,478 --> 00:15:18,558 we're going to be running very large fiscal deficits in the US, 221 00:15:18,778 --> 00:15:23,418 almost regardless of what else happens. There are certain things that can accelerate it a lot. 222 00:15:23,618 --> 00:15:27,278 There are certain things that could maybe decelerate it a little bit, nothing meaningfully. 223 00:15:27,558 --> 00:15:33,658 And so the one way to protect yourself from that situation is to own the highest quality scarce assets. 224 00:15:33,858 --> 00:15:37,458 And of course, the one we all like here is Bitcoin. Thank you. 225 00:15:45,138 --> 00:15:50,518 It's math, baby. And so that's why I have been finding this trend of Bitcoin 226 00:15:50,518 --> 00:15:56,838 influenzas going onto social media and decrying that they have discovered a 227 00:15:56,838 --> 00:15:59,038 major critical flaw in Bitcoin. 228 00:15:59,358 --> 00:16:02,598 So I want to spend just a couple of minutes on this because it's bubbling up more and more. 229 00:16:02,718 --> 00:16:09,638 I think there is a natural, strong reaction to the Bitcoin 2025 conference in 230 00:16:09,638 --> 00:16:13,938 Vegas because there was so much corporate speak, so much talk about stablecoins. 231 00:16:14,741 --> 00:16:17,681 And if you've been online at all, you've you may have seen this clip going around 232 00:16:17,681 --> 00:16:19,861 a stablecoin, stablecoin, stablecoin getting passed around. 233 00:16:19,981 --> 00:16:24,861 I mean, it was obnoxious at the conference, and I think it has caused a lot 234 00:16:24,861 --> 00:16:27,701 of griping that Bitcoin has been captured. 235 00:16:27,921 --> 00:16:30,861 And these influences just discovered that it's been captured. 236 00:16:31,001 --> 00:16:35,661 Maybe it's the banks, maybe it's corporations like strategy or the big boogeyman 237 00:16:35,661 --> 00:16:40,361 now, because, you know, the talk of reserves is heating up is governments. 238 00:16:40,361 --> 00:16:45,061 And I think one of the influenzas that got shared the most was CoffeeZilla. 239 00:16:45,281 --> 00:16:49,921 Today, I want to talk about Bitcoin, how the government has fully embraced it. 240 00:16:50,021 --> 00:16:55,961 And what's ironic is that the Bitcoin people who they started as anti-government. 241 00:16:56,501 --> 00:17:01,341 Anti-central control, have now started to fully embrace it. 242 00:17:01,501 --> 00:17:03,921 And you've got a bunch of billionaires. 243 00:17:04,301 --> 00:17:09,521 Let's stop here. So, you know, anytime you cast with a wide brush like this, 244 00:17:09,941 --> 00:17:14,881 this isn't a particular product, right? This is a store of value. 245 00:17:15,021 --> 00:17:19,081 And that means it appeals to all types, anti-government, pro-government, 246 00:17:19,221 --> 00:17:23,481 anti-state, pro-state, anti-establishment, pro-establishment, etc. 247 00:17:23,701 --> 00:17:27,581 People that want to preserve value. So do some people on the fringes because 248 00:17:27,581 --> 00:17:30,381 they have a higher need than others discover it first? Absolutely. 249 00:17:30,721 --> 00:17:33,661 And do they help drive adoption initially? Of course they do. 250 00:17:33,661 --> 00:17:35,421 That's how it works for everything. 251 00:17:35,781 --> 00:17:39,341 People on the fringes discover the need of the new thing because they're being 252 00:17:39,341 --> 00:17:42,121 served less by the existing system than the average person. 253 00:17:42,521 --> 00:17:46,901 But, you know, we do this now in retrospect. But it's lazy with hindsight to 254 00:17:46,901 --> 00:17:50,001 just be like, oh, but it was it was the radicals that were all in for Bitcoin. 255 00:17:50,001 --> 00:17:53,881 And now look, now look, you've got BlackRock in with Bitcoin. 256 00:17:53,881 --> 00:18:01,821 Who they started as anti-government, anti-central control, have now started to fully embrace it. 257 00:18:01,981 --> 00:18:09,221 And you've got a bunch of billionaires and oligarchs that sort of control Bitcoin's 258 00:18:09,221 --> 00:18:10,841 community in a weird way. 259 00:18:11,001 --> 00:18:15,281 Now, he never really substantiates this claim. But what do you think is going to happen? 260 00:18:15,957 --> 00:18:19,437 If people got in and they huddled their Bitcoin, you know, and they got in when 261 00:18:19,437 --> 00:18:22,497 it was pennies or dollars and they have thousands of it and they huddled it, 262 00:18:22,597 --> 00:18:23,837 they're going to become billionaires. 263 00:18:24,017 --> 00:18:27,817 And then they're likely going to turn around and spend some of that winnings 264 00:18:27,817 --> 00:18:32,577 on investing in Bitcoin development or paying for certain types of pet projects. 265 00:18:32,777 --> 00:18:37,297 We see this happen in Linux, too. I mean, Canonical is essentially, 266 00:18:37,297 --> 00:18:41,097 you know, the pet project of Mark Shuttleworth that turned into a legitimate, 267 00:18:41,297 --> 00:18:42,877 full-fledged, enterprise-grade company. 268 00:18:43,597 --> 00:18:46,437 But it started with wanting to make something that was just a little bit better 269 00:18:46,437 --> 00:18:49,737 than Debian for everybody with some sane human defaults. 270 00:18:50,517 --> 00:18:54,757 But does that mean Linux has now been owned by the corporations and the billionaires? 271 00:18:54,877 --> 00:18:55,977 Mark Shuttleworth is one of them. 272 00:18:56,457 --> 00:18:58,597 You see, it just doesn't work like this with free software. 273 00:18:59,097 --> 00:19:02,337 Everybody's allowed to scratch their own itch. It's a lot like free speech. 274 00:19:02,357 --> 00:19:04,037 And I know that drives some people crazy. 275 00:19:04,197 --> 00:19:12,717 Got a bunch of billionaires and oligarchs that sort of control Bitcoin's community in a weird way. 276 00:19:12,877 --> 00:19:18,817 And also, this is where influenzas get lost in the social media bubble. 277 00:19:18,937 --> 00:19:22,237 And I find it extremely frustrating, right? Because we know that 60% of the 278 00:19:22,237 --> 00:19:25,257 Bitcoin supply is owned by the plebs, owned by the people. 279 00:19:25,937 --> 00:19:30,257 Most wallets in existence have less, the vast majority of wallets in existence 280 00:19:30,257 --> 00:19:32,457 have less than one Bitcoin in them, right? 281 00:19:33,217 --> 00:19:40,357 This whole narrative here is a misunderstanding. And what really gets me kind of worked up is. 282 00:19:41,100 --> 00:19:45,800 He's pretending like he's just discovered all of this, and it's devastating 283 00:19:45,800 --> 00:19:48,820 news that there's been some sort of hard turn or hard shift. 284 00:19:48,960 --> 00:19:52,500 Got a bunch of billionaires and oligarchs. 285 00:19:52,600 --> 00:19:56,720 And he's looking inside the social media bubble, and he's determining all of 286 00:19:56,720 --> 00:20:00,500 this because YouTube and Twitter and the other ones, like, they define their reality. 287 00:20:00,600 --> 00:20:04,860 And yeah, sure, does Jack Dorsey have some sway on Noster or on X? Yeah. 288 00:20:05,320 --> 00:20:08,400 But does that really affect the real world much? No. 289 00:20:08,580 --> 00:20:11,640 No. And so you cannot measure from within social media. 290 00:20:11,800 --> 00:20:14,660 It is not a valid system to which measure you can measure against. 291 00:20:14,660 --> 00:20:19,640 That sort of control Bitcoin's community in a weird way. 292 00:20:19,860 --> 00:20:26,500 And I want to flag it. I want to flag the rise of Bitcoin strategic reserves, 293 00:20:26,820 --> 00:20:28,340 which are not strategies. 294 00:20:28,540 --> 00:20:34,020 And the weird direction this is going, it's just ironic because of what Bitcoin 295 00:20:34,020 --> 00:20:38,560 sort of started out as, as a way to get around the government, 296 00:20:38,740 --> 00:20:41,220 get around censorship, you know, things like that. 297 00:20:41,220 --> 00:20:45,680 Which, I wonder, would CoffeeZilla be happy if Bitcoin was these things? 298 00:20:46,140 --> 00:20:51,580 If Bitcoin was this tool that completely got around the government, 299 00:20:51,620 --> 00:20:53,700 which, I mean, it still is. 300 00:20:53,900 --> 00:20:57,300 You can completely transfer value between two individuals peer-to-peer, 301 00:20:57,440 --> 00:20:59,660 and the government doesn't have any involvement at all. 302 00:20:59,660 --> 00:21:05,080 But outside of that, I mean, I don't have the sense that CoffeeZilla would like 303 00:21:05,080 --> 00:21:09,980 something that is outside the system. I think he wouldn't like that either, right? 304 00:21:10,000 --> 00:21:13,460 He would not be happy if Bitcoin was the opposite of what he's talking about right now either. 305 00:21:13,680 --> 00:21:17,880 As a way to get around the government, get around censorship, 306 00:21:18,140 --> 00:21:18,940 you know, things like that. 307 00:21:19,120 --> 00:21:23,920 But now that you have governments starting to accumulate this stuff, 308 00:21:24,060 --> 00:21:28,080 you've got the increase of rich and powerful people starting to accumulate this 309 00:21:28,080 --> 00:21:31,580 stuff. The question is, what is it doing anymore? 310 00:21:31,740 --> 00:21:36,980 Is it even trying to achieve the same goals or is it just about the price going up? 311 00:21:37,769 --> 00:21:43,749 So, of course, the fallacy here is that Bitcoin is no longer achieving its original 312 00:21:43,749 --> 00:21:45,929 goals, and now it's all about just number go up. 313 00:21:46,429 --> 00:21:50,009 And I hate this because it essentially 314 00:21:50,009 --> 00:21:53,169 is saying Bitcoiners should not celebrate when the price goes up. 315 00:21:53,309 --> 00:21:56,549 Now, you can feel like crap when the price dips. 316 00:21:57,209 --> 00:22:01,989 Coffee's ill is fine with that. But don't get excited if the number goes up. 317 00:22:02,409 --> 00:22:06,229 Right? That's bad, apparently. And then this other idea that governments holding 318 00:22:06,229 --> 00:22:08,829 Bitcoin somehow gives governments control of Bitcoin. 319 00:22:09,489 --> 00:22:12,649 I'm surprised with his years of following crypto, he doesn't understand this 320 00:22:12,649 --> 00:22:14,749 better. First of all, let's start with the fundamentals. 321 00:22:15,409 --> 00:22:18,289 Governments should be run by the people for the people. So when a government 322 00:22:18,289 --> 00:22:20,809 holds Bitcoin by extension, they're holding it for the people. 323 00:22:21,069 --> 00:22:24,749 Now, you could argue if that works or not. I'd love to hear that argument. 324 00:22:25,149 --> 00:22:26,729 But you're opening up a can of worms. 325 00:22:27,189 --> 00:22:29,649 Should we have an oil reserve? Should we have a cheese reserve? 326 00:22:29,889 --> 00:22:33,409 Should we have a gold reserve? Et cetera, right? You're opening up a can of worms there. 327 00:22:33,769 --> 00:22:37,429 Because I don't value gold. I don't really care if we have a cheese reserve. 328 00:22:37,589 --> 00:22:41,429 I could make an argument that's a ridiculous thing. It's not really a reserve, right? 329 00:22:41,969 --> 00:22:45,569 So you either have reserves of scarce things or you don't. 330 00:22:46,069 --> 00:22:50,869 But then this other idea that somehow by holding Bitcoin, which would probably 331 00:22:50,869 --> 00:22:55,969 really mean in some Coinbase wallet somewhere or some other holder, it doesn't matter. 332 00:22:56,149 --> 00:23:01,249 Bitcoin's network is ran across tens of thousands, 20,000 plus nodes. 333 00:23:02,029 --> 00:23:05,669 No single corporation or government controls those nodes. Maybe they run a few, 334 00:23:05,949 --> 00:23:08,169 but they don't dictate the consensus rules. 335 00:23:08,809 --> 00:23:13,309 The network dictates the consensus rules. And Bitcoin's monetary policy, 336 00:23:13,509 --> 00:23:17,789 the 21 million supply cap, that predictable issuance, can't be altered without 337 00:23:17,789 --> 00:23:19,669 the overwhelming global consensus. 338 00:23:20,189 --> 00:23:25,209 So corporations aren't going to change this. The Trump administration is not going to change this. 339 00:23:25,489 --> 00:23:30,409 And regardless of how much Bitcoin they hold, anyone and nothing changes this. 340 00:23:30,409 --> 00:23:34,169 Can still hold Bitcoin directly without any intermediary. 341 00:23:34,909 --> 00:23:39,329 And Bitcoin remains open source and fully transparent, regardless of how many 342 00:23:39,329 --> 00:23:40,549 coins Michael Saylor holds. 343 00:23:41,009 --> 00:23:45,449 And the reality is, if any entity goes crazy and tries to soak up all the Bitcoin 344 00:23:45,449 --> 00:23:50,029 and control things economically and hold up and hold it all in a big old reserve, what would happen? 345 00:23:50,509 --> 00:23:53,669 The increased scarcity would drive price. 346 00:23:54,309 --> 00:23:59,149 Price drives adoption. You then have redistribution as people take profits. 347 00:23:59,149 --> 00:24:03,409 And the Bitcoin gets redistributed again, not to mention dips continue to happen 348 00:24:03,409 --> 00:24:05,789 and the Bitcoin gets redistributed again. 349 00:24:06,149 --> 00:24:08,429 Its design inherently resists capture. 350 00:24:09,109 --> 00:24:15,729 Adoption by all kinds, corporates, states, individuals, was always the plan. 351 00:24:16,189 --> 00:24:19,689 And if you think about it, what else did you expect? Did you expect to create 352 00:24:19,689 --> 00:24:21,269 some sort of giant side economy, 353 00:24:21,509 --> 00:24:26,669 essentially a side chain to the US economy, some ginormous multi-multi-trillion 354 00:24:26,669 --> 00:24:31,369 dollar side dark economy that wouldn't be constantly attacked by world governments 355 00:24:31,369 --> 00:24:36,769 that somehow people would participate in without using liquidity from the existing system. 356 00:24:37,824 --> 00:24:39,824 How do you do that? I don't even know how that would have worked. 357 00:24:40,144 --> 00:24:46,284 The route was always going to be we take over the system from the inside out. 358 00:24:46,744 --> 00:24:53,624 To suck liquidity out of the system. For value to flow where it is treated best, like water flows. 359 00:24:54,244 --> 00:24:58,264 And the market craves, demands, wants Bitcoin. 360 00:24:58,624 --> 00:25:03,404 These sovereigns, these corporate treasuries, individuals, they want Bitcoin 361 00:25:03,404 --> 00:25:05,064 because it resists capture. 362 00:25:05,064 --> 00:25:09,084 So if they buy up the Bitcoin and somehow were able to convince a bunch of node 363 00:25:09,084 --> 00:25:12,124 operators and miners to change consensus rules, which would never happen, 364 00:25:12,704 --> 00:25:17,844 they would be devaluing and taking away the thing that makes the very asset 365 00:25:17,844 --> 00:25:19,644 they're holding precious. 366 00:25:20,764 --> 00:25:25,384 They would be devaluing their investment. The incentives align here. 367 00:25:26,784 --> 00:25:30,344 This resistance to censorship this decentralized 368 00:25:30,344 --> 00:25:34,064 nature this sovereignty from world governments where 369 00:25:34,064 --> 00:25:38,324 individuals corporations governments and everything in between churches can 370 00:25:38,324 --> 00:25:42,104 hold bitcoin is what makes it valuable and if you take that away if you wreck 371 00:25:42,104 --> 00:25:46,944 it you take away its value so you would be destroying your own investment how 372 00:25:46,944 --> 00:25:50,384 do you get the liquidity without the banks and the big money? 373 00:25:50,644 --> 00:25:55,524 Were we supposed to create a whole new monetary system and build that mother 374 00:25:55,524 --> 00:26:00,304 effer out for a hundred years until it was hundreds of trillions of dollars in value? 375 00:26:00,484 --> 00:26:04,124 And then one day we were just going to hot swap to the new system. 376 00:26:04,724 --> 00:26:06,944 That's how this was going to work? It's ridiculous. 377 00:26:07,964 --> 00:26:11,124 It always was going to require adoption by the broader system. 378 00:26:11,124 --> 00:26:14,064 It was always going to eat the system from the inside out. 379 00:26:14,584 --> 00:26:17,184 It's either that or it dies and it's not dying. 380 00:26:17,764 --> 00:26:22,904 So these influenzas that are griping about government control and corporate 381 00:26:22,904 --> 00:26:26,184 control seem to not actually understand the way Bitcoin works. 382 00:26:36,564 --> 00:26:40,204 All right, but what do you think? Check me here. Am I missing something? 383 00:26:40,424 --> 00:26:43,784 Is Bitcoin being captured and I'm not seeing it? Make your case with a boost 384 00:26:43,784 --> 00:26:47,504 or let me know if and why you agree with my take. 385 00:26:48,244 --> 00:26:53,184 Also, appreciate any shout outs for episode 60. Episode 60 next week. I don't know. 386 00:26:53,724 --> 00:26:56,104 50 didn't feel like it, but 60, it's feeling like a milestone. 387 00:26:56,324 --> 00:26:57,644 So shout outs appreciated for that too. 388 00:26:57,360 --> 00:27:08,240 Music. 389 00:27:12,604 --> 00:27:13,144 . 390 00:27:16,615 --> 00:27:20,255 Well, coming up on the show, it's your booze, a bunch of great updates, 391 00:27:20,395 --> 00:27:23,815 and then a series for the final clip of the week, which I guess should be called 392 00:27:23,815 --> 00:27:25,415 the final clips of the week. 393 00:27:25,715 --> 00:27:29,655 But before I go on, I want to mention you can support the show by doing what you do. 394 00:27:29,815 --> 00:27:33,635 You can buy sats on River, on River, on Reva, which is one of the best ways 395 00:27:33,635 --> 00:27:38,775 to stack sats here in the U.S., but they also have that 3.8% paid in sats savings account. 396 00:27:38,835 --> 00:27:45,575 So you put your fiat in an FDIC insured savings account and you earn 3.8% sats. 397 00:27:46,115 --> 00:27:49,295 And then those sats increase in value, too. That's great in the States. 398 00:27:49,595 --> 00:27:53,055 And they also have a great DCA system. If you're in Canada or you're all about 399 00:27:53,055 --> 00:27:55,715 self-custody here in the U.S., the Bitcoin well is the way to go. 400 00:27:55,895 --> 00:27:58,475 You want to spend your sats via Lightning, the Bitcoin company. 401 00:27:58,655 --> 00:28:02,155 All they do is Bitcoin, and they make it quick to go from Lightning to a gift card. 402 00:28:02,395 --> 00:28:05,855 You want to stack your sats by doing your daily purchases and your bills and 403 00:28:05,855 --> 00:28:08,215 all of that. That's the bold card. I got a link to that. 404 00:28:08,475 --> 00:28:11,735 And last but not least, you want to keep that stack but access the liquidity. 405 00:28:12,095 --> 00:28:15,275 Salt lending is one of my favorite ways to do that. Links to all of these in 406 00:28:15,275 --> 00:28:17,715 the show notes. You do that, it supports the show. 407 00:28:35,515 --> 00:28:39,055 Well, we have some boost to get to. Of course, this is a Value for Value podcast 408 00:28:39,055 --> 00:28:42,655 and supporting the show with a boost. not only demonstrates to the naysayers 409 00:28:42,655 --> 00:28:45,795 out there that there's lots of ways to use Bitcoin and that Lightning is a valid 410 00:28:45,795 --> 00:28:49,995 way to do it, but of course it supports the show without any middleman, any corporation. 411 00:28:50,315 --> 00:28:54,555 And a little bit goes to the podcast index and the app developer who creates the app too. 412 00:28:54,835 --> 00:28:59,955 Four score and seven boosts to go. And our first boost comes from a, 413 00:29:00,135 --> 00:29:07,335 whoa, look at this one, a baller booster from Patari's back with 100,000 sats. Hey, Rich Lobster! 414 00:29:16,075 --> 00:29:17,375 I'll see you next time. 415 00:29:18,480 --> 00:29:28,880 Music. 416 00:29:28,750 --> 00:29:33,590 But that's not possible. Nothing can do that. Ah, Pitar did 100,000 sats to. 417 00:29:33,590 --> 00:29:35,790 Say my favorite Bitcoin podcast. 418 00:29:36,050 --> 00:29:39,770 Thank you, sir. It has been a very long time since I've had a baller boost of 419 00:29:39,770 --> 00:29:41,570 that caliber, and it means a lot. 420 00:29:41,810 --> 00:29:44,870 I really appreciate it. It's great to hear from you. And Pitar, 421 00:29:45,030 --> 00:29:46,550 you are our baller of this week. 422 00:29:46,790 --> 00:29:52,750 And right there behind you, also a very generous boost, Pab's here with 90,000 sats. 423 00:29:56,650 --> 00:29:59,490 He's a good guy. He's a real good guy. No, you're a great guy. 424 00:29:59,890 --> 00:30:02,770 Thank you for helping us help you help us all. 425 00:30:02,990 --> 00:30:06,050 He says, I hear you. You're right. My previous question about Proton Wallet 426 00:30:06,050 --> 00:30:08,930 versus Strike was definitely worth more than 2,100 sats. 427 00:30:09,050 --> 00:30:12,430 The value I've gotten from Jupyter Broadcasting over the past six years exceeds 428 00:30:12,430 --> 00:30:14,470 even this boost. Genuinely grateful. 429 00:30:15,170 --> 00:30:16,930 Boost on. Well, thank you, Pab. 430 00:30:17,810 --> 00:30:20,890 I was really just razzing you, but I do genuinely appreciate that. 431 00:30:21,330 --> 00:30:24,550 Keep me the loop on that journey, too. I've been looking at Strike more and 432 00:30:24,550 --> 00:30:26,190 more these days because they've got a lot of great features, 433 00:30:26,210 --> 00:30:29,350 so I'm always curious to hear how people are liking it. Appreciate that. 434 00:30:30,064 --> 00:30:34,064 User 49 came in with 42,000 and 43 sats. 435 00:30:35,424 --> 00:30:41,004 Ah, I wonder if the 43, it's very, I, 42, 43, I feel like there's a message 436 00:30:41,004 --> 00:30:42,644 in there. Well, I'll be dipped. 437 00:30:42,864 --> 00:30:45,624 He says, last time I boosted, I forgot to message. So here's another one. 438 00:30:45,764 --> 00:30:48,744 It's a patch boost, if you will. I agree with the gentleman who said, 439 00:30:48,884 --> 00:30:51,084 quote, if I could keep only one podcast. 440 00:30:52,364 --> 00:30:56,944 He says, imagine me as Robinson Crusoe with the sat dish, solar panel, and a Linux box. 441 00:30:57,284 --> 00:31:00,844 Here's some sunsats to get a whole new meaning. It gives sunsats a whole new meaning. 442 00:31:01,244 --> 00:31:04,084 Thank you. That's a really nice compliment. If you only had one Bitcoin, 443 00:31:04,224 --> 00:31:08,544 I can't even with that. You guys, you guys. The traders love the vol. 444 00:31:08,764 --> 00:31:11,244 Thank you very much. I appreciate that, user 49. 445 00:31:12,224 --> 00:31:15,964 MugDaddy came in with four, nope, 20,000 sats. 446 00:31:16,104 --> 00:31:19,124 Still a great boost. Thank you very much. This old duck still got it. 447 00:31:19,204 --> 00:31:21,164 This is a great episode regarding stable coins. 448 00:31:21,324 --> 00:31:26,724 Why would I save in a stable coin when I could save in the hardest money in human history? 449 00:31:27,444 --> 00:31:35,004 Yeah, I agree. I think I do. I suspect it'll be a bunch of no-coiners who don't 450 00:31:35,004 --> 00:31:37,284 even really realize they're getting involved with crypto. 451 00:31:37,884 --> 00:31:41,304 Like, the banks are going to offer this as a product, and they're going to get 452 00:31:41,304 --> 00:31:44,384 some sort of yield. It's going to be low-key stuff, right? 453 00:31:44,464 --> 00:31:47,144 It's not going to be 60% returns, Mung Daddy. 454 00:31:47,524 --> 00:31:50,844 I think you're totally right. I mean, you know, but they're going to do it. 455 00:31:50,984 --> 00:31:52,324 You know they're going to offer it, right? 456 00:31:53,024 --> 00:31:55,904 It's going to happen. Great to hear from you, Mung Daddy. Thanks for the boost. 457 00:31:55,904 --> 00:31:59,164 Hey, the Tone Wrecker's here with 3,333 sats. 458 00:32:03,664 --> 00:32:08,804 New episode night. Appreciate this effort gathering the news. I like that. 459 00:32:09,204 --> 00:32:13,364 I feel like a moment of zen just washed over us. I appreciate it. 460 00:32:13,504 --> 00:32:15,224 Why you gotta put numbers and letters together? 461 00:32:15,524 --> 00:32:17,964 Why can't you just go f*** yourself? Thanks for the boost. 462 00:32:18,324 --> 00:32:21,864 User 51 came in with 2,100 sats. 463 00:32:22,084 --> 00:32:25,424 Coming in hot with the boost. Truly the best way to catch up on the Bitcoin 464 00:32:25,424 --> 00:32:29,084 current events. Informative, entertaining, good vibes. I'm a fan. Well, thank you, 51. 465 00:32:29,904 --> 00:32:32,204 Nice to hear from you. I'd love to know your username. If you get a chance to 466 00:32:32,204 --> 00:32:33,184 set that in fountain, come back. 467 00:32:34,035 --> 00:32:41,515 But I appreciate that boost. Gene Bean's back with 6,805 sats. Yep. Yep. 468 00:32:42,215 --> 00:32:46,295 He says, holy S, someone has the nerve to go in front of a Bitcoin conference 469 00:32:46,295 --> 00:32:48,075 and disparage not your keys, not your coins. 470 00:32:48,295 --> 00:32:52,895 Were they at least boot off stage? If not, was the audience even Bitcoiners? 471 00:32:53,135 --> 00:32:56,315 I know, that was really wild. I think that was a smaller event. 472 00:32:56,835 --> 00:32:59,915 They have some smaller private events depending on your ticket price. 473 00:33:00,495 --> 00:33:03,595 I don't know if you are aware, Gene, but they have a whale ticket. 474 00:33:04,055 --> 00:33:08,275 And right after the conference ends, so if you wanted to buy for Bitcoin 2026, 475 00:33:08,635 --> 00:33:10,575 the whale ticket's like $3,000. 476 00:33:11,575 --> 00:33:17,195 But it goes up steadily to the night before Bitcoin 2026, the whale ticket will 477 00:33:17,195 --> 00:33:21,455 be somewhere like $21,000 for one ticket for one person. 478 00:33:21,955 --> 00:33:25,075 And so what they do to try to juice it a little bit for you to get you to spend 479 00:33:25,075 --> 00:33:29,795 that money is they give some private talks. Like, Sailor had a private talk with the whales. 480 00:33:30,415 --> 00:33:34,395 Blue Origin was in the whale-only section with a capsule, the one that they 481 00:33:34,395 --> 00:33:37,455 sent Katy Perry up into space. They brought that to the Bitcoin conference, 482 00:33:37,815 --> 00:33:42,075 put it in the whale-only section, and then gave the whales tours. 483 00:33:42,335 --> 00:33:44,995 And while they're getting tours of the capsule, they try to sell the whales, 484 00:33:45,095 --> 00:33:47,815 because they assume they got money, on booking a flight. 485 00:33:48,015 --> 00:33:53,015 They were actually booking Blue Origin, Katy Perry-style flights in the whale 486 00:33:53,015 --> 00:33:54,275 section at the Bitcoin conference. 487 00:33:56,855 --> 00:34:01,375 So i don't know man it's a big money grab i i 488 00:34:01,375 --> 00:34:04,655 think there's a lot of other conferences that are higher signal i 489 00:34:04,655 --> 00:34:07,455 it's i hope one day to add more of them to my rotation to really 490 00:34:07,455 --> 00:34:10,995 have a better understanding so with regards to the pi 4 and 2 gigs of ram i'm 491 00:34:10,995 --> 00:34:16,175 using an mvme m.2 via usb3 maybe that makes all the difference definitely makes 492 00:34:16,175 --> 00:34:20,155 a big improvement this is interesting too i saw on social media again this week 493 00:34:20,155 --> 00:34:25,035 people discussing how pi 4s and and and and and whatnot are just too slow to be useful. 494 00:34:25,315 --> 00:34:28,215 But, you know, Gene, you're making me feel like if you put a good fast disc 495 00:34:28,215 --> 00:34:29,835 on there, maybe it is possible. 496 00:34:30,704 --> 00:34:33,284 He says, so how can I get the reporting about the original cost versus the current 497 00:34:33,284 --> 00:34:37,664 value and average purchases price like River provides if I move coins to my hardware wallet? 498 00:34:38,364 --> 00:34:43,224 Oh, I'm drawing a blank gene, but there is a self-hosted quote unquote crypto accounting app. 499 00:34:43,424 --> 00:34:45,604 You can put in some of the dates and it will do the math for you. 500 00:34:45,704 --> 00:34:48,024 It can monitor wallet addresses directly as well. 501 00:34:48,444 --> 00:34:52,484 I don't remember the name of it, but I do believe it's in the Umbral App Store. 502 00:34:52,644 --> 00:34:56,224 It may be in the Start9 App Store. So you could go look at the Umbral App Store 503 00:34:56,224 --> 00:34:59,384 online. You can just go Umbral App Store and Google and whatever being it. 504 00:34:59,824 --> 00:35:02,764 And then it is listed in there, I believe, and you might be able to find it that way. 505 00:35:03,284 --> 00:35:07,184 Did you, Bob, Bob, do you like, do you like you did with office hours and set 506 00:35:07,184 --> 00:35:10,724 a target boost amount, ah, for a separate podcast in the Dupre Xers to fund 507 00:35:10,724 --> 00:35:13,144 a special deep dive on things like Core vs. Knots? 508 00:35:13,344 --> 00:35:16,824 You know, Gene, I've actually been thinking about something similar to that, 509 00:35:17,304 --> 00:35:20,444 about doing special episodes sort of similar to that. So stay tuned. 510 00:35:20,904 --> 00:35:24,604 I am just kind of getting back from a busy travel season and kind of pontificating 511 00:35:24,604 --> 00:35:27,024 on where I have a little extra time to dedicate to TWIB now. 512 00:35:27,204 --> 00:35:28,904 And so that's one of the areas I've been thinking about. 513 00:35:29,384 --> 00:35:32,464 And I may distribute them differently than the main show. 514 00:35:32,624 --> 00:35:35,044 I haven't really gotten there yet. But I appreciate that feedback. 515 00:35:35,184 --> 00:35:39,304 I'll take it in as I'm sort of sorting it all out, which, as you may have guessed, 516 00:35:39,504 --> 00:35:42,364 is happening right now. Thanks, Gene. Nice to hear from you. 517 00:35:43,044 --> 00:35:46,904 Thor is here with 2,000 sats. Oh, my God, this drawer is filled with fruit lobes. 518 00:35:46,984 --> 00:35:50,044 Plus one for more technical topics. And I also like the idea of a technical 519 00:35:50,044 --> 00:35:51,464 episode being a special, preferably 520 00:35:51,464 --> 00:35:54,204 with a prefix the listeners can filter based on their preference. 521 00:35:54,664 --> 00:35:58,904 Anyways, I am loving the portal clips. How about a clip of the radio? 522 00:35:58,904 --> 00:36:01,864 You're doing very well. Oh, you've got to send that to me. 523 00:36:02,384 --> 00:36:06,324 I'll tell you my trick that I have discovered. If you want to send me a boost, 524 00:36:06,404 --> 00:36:09,304 they need to be real tight and funny, something recognizable like a boost soundbite. 525 00:36:09,904 --> 00:36:16,804 The real unlock is to take a 5.1 Dolby file, like an MKV that has 5.1 audio, 526 00:36:17,144 --> 00:36:21,224 load that into Audacity, and the center track is often just mostly dialogue. 527 00:36:21,524 --> 00:36:25,344 It makes for really nice, clean cuts. The heck? 528 00:36:25,464 --> 00:36:27,044 Like that one or this one? I 529 00:36:27,044 --> 00:36:31,104 don't understand what the heck is going on here. Or this one. I like you. 530 00:36:31,464 --> 00:36:34,724 You're a hot ticket. You can hear a little bit of background noise in that one, 531 00:36:34,764 --> 00:36:35,724 but it's all center channel. 532 00:36:35,884 --> 00:36:39,344 So if you ever want to send me a boost clip, those are sort of the criteria. 533 00:36:40,084 --> 00:36:41,184 Thanks, Thor. Nice to hear from you. 534 00:36:41,894 --> 00:36:47,994 Sir Naxalot's here with 3,500 sats. Good news, everyone. Those controlling the 535 00:36:47,994 --> 00:36:49,574 world order are really brilliant. 536 00:36:49,954 --> 00:36:54,534 In Europe, they're bringing in CBDCs by force in a land where the majority of 537 00:36:54,534 --> 00:36:57,234 people are comfortable with the rules brought in by force. 538 00:36:57,494 --> 00:37:00,134 Canada is likely to join them economically and also adopt their coin. 539 00:37:00,334 --> 00:37:04,174 The USA, the land of the free, has the stable coins brought in, 540 00:37:04,354 --> 00:37:08,114 a sneaky way to bring in control and into the land where people value freedom. 541 00:37:08,394 --> 00:37:11,374 Bitcoin only, peer-to-peer. Spread Bitcoin and love. 542 00:37:13,214 --> 00:37:18,754 Yeah, I'm not, I think I came across last episode as sort of being pro stable 543 00:37:18,754 --> 00:37:20,174 coin because it's not a CBDC. 544 00:37:21,034 --> 00:37:25,094 That's like saying I'm, I hate it, but I just hate it a little bit less, 545 00:37:25,234 --> 00:37:28,714 you know, because I'm hoping we'll have some market choice. 546 00:37:28,714 --> 00:37:31,494 It may maybe tether or circle run away with it 547 00:37:31,494 --> 00:37:34,594 and then you know are totally government controlled but if 548 00:37:34,594 --> 00:37:37,734 we have a if we have a loose definition or the 549 00:37:37,734 --> 00:37:40,474 definition that's loose enough that maybe there could be a community created 550 00:37:40,474 --> 00:37:44,434 stable coin maybe i don't know i gotta tell you the more i think about it i'm 551 00:37:44,434 --> 00:37:50,314 actually pretty pessimistic sir thanks sir next a lot it's nice to hear from 552 00:37:50,314 --> 00:37:53,994 you and thank you for the boost appreciate that too we have hello there with 553 00:37:53,994 --> 00:37:56,534 a row of ducks 2222 you, Sats. 554 00:37:58,254 --> 00:38:02,334 This is a glad you had a good trip. Don't ever do it again. We missed you. 555 00:38:03,974 --> 00:38:07,554 Thank you very much. I feel missed. Ace Ackerman's here with a row of ducks as well. 556 00:38:08,514 --> 00:38:11,934 I'm on board with stablecoin adoption, even though it's the lesser of two evils. 557 00:38:12,054 --> 00:38:15,234 I think it's inevitable and hope that over time it increases the adoption and 558 00:38:15,234 --> 00:38:16,474 appreciation of Bitcoin. 559 00:38:16,874 --> 00:38:20,394 Well, Ace, on that note, stay tuned for the final clips of the week. 560 00:38:21,074 --> 00:38:23,834 Stay tuned for that. You might already know what I'm talking about, 561 00:38:23,914 --> 00:38:26,034 but you're not going to want to miss that. Thank you for the boost. 562 00:38:26,534 --> 00:38:31,674 Mix is here with 3,333 sets. He's a good guy. He's a real good guy. 563 00:38:31,834 --> 00:38:33,834 No, he's a great guy. Well, that's Eric good, buddy. 564 00:38:34,514 --> 00:38:40,134 Trading a CBDC for a PPDC means that your transactions can be censored by the 565 00:38:40,134 --> 00:38:42,054 company without the protection of the constitution. 566 00:38:42,474 --> 00:38:45,874 They could really do whatever they want and whatever the government can just, 567 00:38:46,034 --> 00:38:50,434 and whenever the government says, or I'm sorry, says, and the government can say it wasn't us. 568 00:38:50,654 --> 00:38:53,734 This just eases everyone into a more centralized system, slowly. 569 00:38:54,194 --> 00:38:57,114 It's still a garbage solution and only doubles as a way for the government to 570 00:38:57,114 --> 00:39:00,354 print more, which is why all the politicians and financial crowd like it. 571 00:39:00,414 --> 00:39:02,654 I estimate that physical cash is gone within 10 years. 572 00:39:03,254 --> 00:39:06,854 Oh, I hope not, Mix. I tell you, as a father, it's nice to still have physical 573 00:39:06,854 --> 00:39:09,194 cash and just give the kids a couple of bucks when they go to the store, 574 00:39:09,274 --> 00:39:12,054 you know what I mean? Well, now it's more like 10 bucks, but it used to be a couple of bucks. 575 00:39:12,914 --> 00:39:17,194 I think all of that's true. I don't know if it would have been any better with the CBDC in particular. 576 00:39:17,214 --> 00:39:19,394 I guess there would have been some constitutional protections, 577 00:39:19,454 --> 00:39:22,574 but they can get away with a lot just with the existing fraud laws. 578 00:39:22,974 --> 00:39:25,994 So, and we're kind of, oh, here's the other thing I'd ask you. 579 00:39:26,354 --> 00:39:29,074 Are we not already sort of here with Visa and MasterCard? 580 00:39:30,110 --> 00:39:32,770 It seems like we might be. So I don't know if there's a big net change. 581 00:39:32,990 --> 00:39:36,570 I think it probably is a net change for the worst. I just don't know how big it is. 582 00:39:37,230 --> 00:39:39,650 Does that make sense? Thank you for the boost. 583 00:39:40,710 --> 00:39:45,230 HDW is here with 5000Sats. I am programmed in multiple techniques. 584 00:39:45,550 --> 00:39:48,670 Thanks for this accurate and well-researched show. As a Bitcoiner first, 585 00:39:48,890 --> 00:39:51,690 I started learning Linux so I could run my own node. 586 00:39:51,890 --> 00:39:55,010 And now I'm running Core and LND on an Ubuntu server from home. 587 00:39:55,270 --> 00:39:57,250 I listened to Linux Unplugged and heard you mention the show, 588 00:39:57,370 --> 00:40:00,950 so I had to give it a try. and will keep listening to tell and tell my friends. Great work. 589 00:40:01,210 --> 00:40:04,590 I would love to hear your wallet suggestions. There's one desktop wallet which 590 00:40:04,590 --> 00:40:08,570 stand out for me, but I'd love to hear what you think with all your experience in FOSS. Thanks. 591 00:40:09,390 --> 00:40:11,190 Well, man, it's a tricky one. 592 00:40:12,290 --> 00:40:16,290 My favorite wallet of choice is Sparrow, and I think it is really good software. 593 00:40:16,450 --> 00:40:18,450 I'm going to cover it in the update section in a little bit, 594 00:40:18,550 --> 00:40:22,770 so I won't say more, but it is great software, and it has a wide range of hardware 595 00:40:22,770 --> 00:40:23,930 compatibility and solutions. 596 00:40:24,390 --> 00:40:27,930 I think it can be slightly intimidating to brand new Bitcoiners, but 597 00:40:27,930 --> 00:40:30,910 it is one of those that helps you prevent 598 00:40:30,910 --> 00:40:33,710 foot gunning yourself and it gives 599 00:40:33,710 --> 00:40:37,530 you information that is necessary for managing your utxos 600 00:40:37,530 --> 00:40:41,350 and making sure that you don't end up in a situation where it is extremely expensive 601 00:40:41,350 --> 00:40:44,590 for you to spend your bitcoin in the future it helps you label stuff really 602 00:40:44,590 --> 00:40:48,690 well i really like a lot of things about sparrow i think if you want something 603 00:40:48,690 --> 00:40:53,670 a little easier maybe something that also supports liquid blockstream just updated 604 00:40:53,670 --> 00:40:54,970 their with their wallet. 605 00:40:55,170 --> 00:40:58,310 It's based on green, and now I think they just call the wallet the Blockstream wallet. 606 00:40:58,950 --> 00:41:01,630 Green is really good stuff. The green wallet is really good. 607 00:41:01,850 --> 00:41:06,470 It does have some ties to Blockstream, but nothing that would prevent you from 608 00:41:06,470 --> 00:41:07,590 using it should they go offline. 609 00:41:07,790 --> 00:41:10,690 And it has a much nicer user interface, has some additional support, 610 00:41:10,830 --> 00:41:14,550 and a wide range of hardware wallet support. And I also think that Jade's pretty good. 611 00:41:14,890 --> 00:41:19,070 I think Bitbox is also fantastic. I have one, and I've been really liking the Bitbox too. 612 00:41:19,170 --> 00:41:23,810 And if you have something that you want to do on mobile and desktop, 613 00:41:24,010 --> 00:41:25,130 Sparrow it doesn't work so great there. 614 00:41:25,230 --> 00:41:27,310 There's ways you can do it and you can use Sparrow with Bitbox, 615 00:41:27,470 --> 00:41:31,310 but Bitbox also has a really great app there. So that's a couple of recommendations. 616 00:41:31,710 --> 00:41:34,430 I know I've sort of, it's just, it's a very much it depends thing. 617 00:41:34,650 --> 00:41:37,430 It feels like it could be its own deep dive episode to tell you the truth. 618 00:41:37,650 --> 00:41:40,810 But let me know if I could clarify that any more for you. Thank you so much 619 00:41:40,810 --> 00:41:43,530 for coming on board with the show and being a LUP listener too. 620 00:41:45,810 --> 00:41:48,990 Jen from Atik's back with 2,000 Sats. 621 00:41:49,210 --> 00:41:52,950 Coming in hot with the boost. Hi, Chris. What is your take on this new interview 622 00:41:52,950 --> 00:41:56,370 with Dr. Jack Cruz, mind-blowing answer to who is Satoshi Nakamoto. 623 00:41:56,870 --> 00:42:01,410 So I watched this, and I wasn't really blown away with his take. 624 00:42:01,590 --> 00:42:06,170 And I was a little disappointed that it's like a 17, 16-minute story to get 625 00:42:06,170 --> 00:42:08,110 to what didn't feel like a great answer. 626 00:42:08,770 --> 00:42:11,530 But I honestly was having a hard time following it as well, Jin. 627 00:42:11,650 --> 00:42:13,970 So if you had a different take, I would definitely love to hear it. 628 00:42:14,010 --> 00:42:17,690 Or if anybody else got to see that mind-blowing answer to who is Satoshi Nakamoto 629 00:42:17,690 --> 00:42:21,290 interview, where the guy has to tell you a 17-minute story so that way he can 630 00:42:21,290 --> 00:42:22,690 give you a one-name answer. 631 00:42:23,110 --> 00:42:26,230 But he wants to build the context And make you understand where he's coming 632 00:42:26,230 --> 00:42:29,690 from And all that So I get it But it was a lot. 633 00:42:30,552 --> 00:42:34,972 But I'd love to hear your take. Nakamoto6102 is here with 5,000 sats. 634 00:42:35,112 --> 00:42:38,672 Boy, they are doing a lot with mayo these days. He says, appreciate the podcast. 635 00:42:39,012 --> 00:42:41,692 We had a bunch of great boosts below the 2,000-sat cutoff, too. 636 00:42:41,732 --> 00:42:45,532 I saw Kaspiland in there, which was nice to see you back. A bunch of others 637 00:42:45,532 --> 00:42:48,712 as well with some nice boosts and people supporting our value-for-value artists. 638 00:42:49,172 --> 00:42:53,872 In fact, we got our track to number one this week. 639 00:42:53,972 --> 00:42:58,072 By you boosting and streaming sats as you listen to the final music of the week, 640 00:42:58,072 --> 00:43:02,852 we got that tracked to number one on the podcast index.topcharts. So that's pretty great. 641 00:43:03,032 --> 00:43:05,972 Thank you everybody who supports this show directly with a boost. 642 00:43:06,112 --> 00:43:10,032 Each episode is made possible because you return value back to the show. 643 00:43:10,112 --> 00:43:13,112 And I focus on making something that the audience wants. 644 00:43:13,272 --> 00:43:16,172 It's a product where the audience is the largest customer. 645 00:43:16,392 --> 00:43:20,512 It's not a business transaction so much. It's an incentive alignment transaction. 646 00:43:20,672 --> 00:43:25,252 And so you can support the show with a boost by getting Fountain FM or any podcasting 647 00:43:25,252 --> 00:43:29,652 2.0 app that supports boosts. Those are listed at podcastapps.com. 648 00:43:29,772 --> 00:43:31,312 Thank you to everybody who streams sats. 649 00:43:31,532 --> 00:43:35,192 48 of you stream sats and pretty good showing there. 650 00:43:35,532 --> 00:43:41,132 That ticked up a bit. 81,154 sats were stacked with our streamers. 651 00:43:41,232 --> 00:43:43,992 Thank you everybody who streams sats as you listen. The artists appreciate it too. 652 00:43:44,272 --> 00:43:48,292 You combine that with our boosters. And of course, that big baller boost, 653 00:43:48,492 --> 00:43:52,652 we stacked 375,388 sats this week. 654 00:44:04,892 --> 00:44:08,572 Really appreciate that. Of course, the future of me will appreciate it more 655 00:44:08,572 --> 00:44:11,112 as I look back and say, oh, that wasn't such a bad hourly wage. 656 00:44:11,252 --> 00:44:13,972 It may be today, by today's standard, not a great hourly wage. 657 00:44:14,618 --> 00:44:18,778 But in future, Chris, and future Jupiter Broadcasting, as we're building a network 658 00:44:18,778 --> 00:44:24,258 that has a Bitcoin balance so that we can weather storms, we can be picky about who we work with. 659 00:44:24,338 --> 00:44:28,258 I mean, the optionality and power and flexibility it's going to give us down 660 00:44:28,258 --> 00:44:32,538 the road just because we stack sats over the long haul, bit by bit, every episode. 661 00:44:32,718 --> 00:44:36,098 And every episode, we're pushing towards that broader, bigger goal. 662 00:44:36,178 --> 00:44:40,038 And I really appreciate it because there are some weeks where a lot of work 663 00:44:40,038 --> 00:44:42,838 goes in and the show doesn't quite get the support. And there's other weeks 664 00:44:42,838 --> 00:44:47,618 where people really step up. and truly, truly one of the best audiences in Bitcoin 665 00:44:47,618 --> 00:44:49,158 podcasting. I'm calling it! 666 00:44:59,878 --> 00:45:03,698 I've played this gentleman from VanEck before. He's one of the top mucky mucks, 667 00:45:03,738 --> 00:45:06,378 and he's going to bring up an outside-the-U.S. 668 00:45:06,478 --> 00:45:09,438 Perspective that I think is probably pretty important to touch on this week, 669 00:45:09,878 --> 00:45:13,878 considering we talked a lot about the West. And it's this other perspective 670 00:45:13,878 --> 00:45:17,598 of there are nations that are going a different route to stack sats. 671 00:45:17,798 --> 00:45:21,578 They're not necessarily setting up a reserve per se and purchasing Bitcoin. 672 00:45:21,898 --> 00:45:25,798 They're going a more direct route. And let's move outside the U.S. 673 00:45:25,958 --> 00:45:30,658 The number of countries who are mining Bitcoin at the central government level. 674 00:45:30,898 --> 00:45:35,218 This was two countries in 2021. El Salvador became the third. 675 00:45:35,458 --> 00:45:42,558 In 2024, we had three new countries join the club. all of them have debt deals with the IMF. 676 00:45:43,507 --> 00:45:47,787 Scratch your head here. Like, what do they have in common? They are tired of 677 00:45:47,787 --> 00:45:53,467 this never-ending cycle of debt that has been facilitated by the IMF, 678 00:45:53,647 --> 00:45:57,327 this extend and pretend where countries lose their sovereignty. 679 00:45:57,447 --> 00:46:01,747 So all three countries last year, Kenya, Ethiopia, Argentina, 680 00:46:02,007 --> 00:46:05,947 who are now mining Bitcoin, you know, with government resources, they had IMF deals. 681 00:46:06,147 --> 00:46:10,227 Then look at the countries this year, Pakistan, another country with an IMF deal. 682 00:46:10,507 --> 00:46:12,587 Unfortunately, the interviewer cut them off before you continue. 683 00:46:12,807 --> 00:46:17,587 But it is interesting to see slowly but surely more and more nations are starting 684 00:46:17,587 --> 00:46:21,607 to mine Bitcoin with some of their resources and build their own little stash. 685 00:46:21,887 --> 00:46:27,647 I think that's going to also be a slow boil that leads to the scarcity story 686 00:46:27,647 --> 00:46:28,847 just getting more intense. 687 00:46:29,727 --> 00:46:34,567 Sparrow Wallet version 2.2.1 is out. I mentioned I'd be talking more about this during the boost. 688 00:46:34,827 --> 00:46:38,927 Sparrow Wallet 2.2.1 has some nice usability improvements, but some technical 689 00:46:38,927 --> 00:46:40,427 refinements that are nice to see as well. 690 00:46:40,587 --> 00:46:44,307 I think the standout feature is the recent block views, which is now in the 691 00:46:44,307 --> 00:46:48,227 send tab and has been modeled after mempool to help you visualize things better. 692 00:46:48,387 --> 00:46:51,487 For Linux users, you need to be aware that the package has been renamed from 693 00:46:51,487 --> 00:46:56,347 Sparrow to Sparrow Wallet or Sparrow Server, and you may need to remove the 694 00:46:56,347 --> 00:46:59,367 old version depending on your package manager and the maintainer. 695 00:46:59,567 --> 00:47:03,867 It's also resolved an issue for macOS, which was causing a UUID issue with Tor, 696 00:47:04,127 --> 00:47:07,987 and key under-the-hood upgrades include an updated version of Tor, 697 00:47:08,267 --> 00:47:12,087 an optimized Electrum server, and multiple dependency updates. 698 00:47:12,327 --> 00:47:16,007 A very, very solid piece of software continuing to get better. 699 00:47:16,547 --> 00:47:19,647 Tracking this just because I think it's interesting, we're about to hit a new 700 00:47:19,647 --> 00:47:22,687 milestone for BlackRock's iBit ETF. 701 00:47:23,247 --> 00:47:30,407 They purchased, on behalf of their customers, 50,000 Bitcoin in May. That's massive. 702 00:47:31,107 --> 00:47:35,367 They're on track for 1 million in holdings for within a year. 703 00:47:35,867 --> 00:47:39,527 And if you like to follow this kind of stuff, shout out to the BTC Wealth Newsletter 704 00:47:39,527 --> 00:47:40,747 where they do follow this. 705 00:47:41,087 --> 00:47:45,107 I think this is a, when they get to the 50,000 mark a month, 706 00:47:45,227 --> 00:47:47,647 like if they have another month, oh my goodness. 707 00:47:48,267 --> 00:47:51,627 Oh my goodness. They have another month like that. I don't think they will initially. 708 00:47:51,947 --> 00:47:53,887 Flows have been actually going out for the first bit of June, 709 00:47:54,067 --> 00:48:00,067 but I mean, not too surprising after an inflow of 50,000. And 1 million within 710 00:48:00,067 --> 00:48:04,907 a year, that'll be the big milestone to watch is when exactly do they hit 1 million in holdings? 711 00:48:05,107 --> 00:48:10,067 It's going to be wild. And it's going to be a whole new rash of influencers freaking out about it. 712 00:48:20,327 --> 00:48:23,127 I mentioned there was a lot of talk about stablecoins, stablecoins, 713 00:48:23,227 --> 00:48:26,547 stablecoins, stablecoins, stablecoins at the Bitcoin conference. 714 00:48:27,627 --> 00:48:31,187 But there was one talk that really was the signal from the noise. 715 00:48:31,187 --> 00:48:34,867 You may have saw some of this going around. It was by SAFE, the author of the Bitcoin Standard. 716 00:48:35,247 --> 00:48:38,127 The full talk will be linked in the show notes. And in this talk, 717 00:48:38,267 --> 00:48:43,147 SAFE makes the case that Tether's growing size and value of their Bitcoin treasury 718 00:48:43,147 --> 00:48:47,987 could actually eventually break Tether's peg to the dollar to the upstream. 719 00:48:48,287 --> 00:48:52,367 And then Tether may be able to maintain that broken peg. 720 00:48:52,647 --> 00:48:56,667 I'll play a few clips that explain it. here's the intro as Saif walks up on 721 00:48:56,667 --> 00:48:57,767 stage to sort of set the tone. 722 00:48:58,507 --> 00:49:00,887 Thank you. Thank you, everybody, for coming out. And thank you to the organizers 723 00:49:00,887 --> 00:49:03,167 for having me. It's a pleasure and an honor to be here. 724 00:49:03,707 --> 00:49:06,187 Today, I'm going to be talking about Bitcoin and the dollar, 725 00:49:06,427 --> 00:49:08,007 in particular about Tether. 726 00:49:08,347 --> 00:49:13,607 And a lot of people think that Tether is going to be something that is very bullish to the dollar. 727 00:49:14,287 --> 00:49:17,987 And, you know, to be fair, they found a whole new generation of bag holders 728 00:49:17,987 --> 00:49:21,087 around the world to buy the treasury shitcoin. 729 00:49:21,227 --> 00:49:24,167 So you would think that that would generally be bullish, but I'd like to take 730 00:49:24,167 --> 00:49:27,507 a closer look at it and see how bullish it actually is. 731 00:49:28,007 --> 00:49:33,047 Okay, pretty solid start. And then Safe goes on to explain how Tether might 732 00:49:33,047 --> 00:49:34,947 actually break its dollar peg one day. 733 00:49:35,147 --> 00:49:40,267 So currently, Tether has over 100,000 bitcoins, which is worth more than $10 billion. 734 00:49:40,907 --> 00:49:45,667 And their US dollar denominator reserves and treasuries are around $120 billion. 735 00:49:45,867 --> 00:49:50,227 So currently they've got more than 10 times as much fiat as they do Bitcoin. 736 00:49:50,827 --> 00:49:55,887 However, if there's one thing we know about Bitcoin, it's that it has number go up technology. 737 00:49:56,207 --> 00:50:00,567 And if there's one thing we know about the dollar, it's that it has number go down technology. 738 00:50:01,047 --> 00:50:04,447 Now, one thing keeps going up. The other thing keeps going down. 739 00:50:05,627 --> 00:50:08,747 Inevitably, the thing that goes up is going to overtake the things that go, 740 00:50:09,317 --> 00:50:15,157 down. And so whether through default devaluation or both, Tether's Bitcoin reserves 741 00:50:15,157 --> 00:50:18,617 will likely eventually overtake its US dollar reserves. 742 00:50:19,137 --> 00:50:22,457 The ways in which we get there might be different, but as long as Tether keeps 743 00:50:22,457 --> 00:50:26,777 buying more and more Bitcoin, which they seem not to be stopping, 744 00:50:27,097 --> 00:50:30,797 and which seems to be a very wise thing for them to do because it's the only 745 00:50:30,797 --> 00:50:34,957 way to protect themselves from devaluation of the dollar and default on treasuries, 746 00:50:35,317 --> 00:50:38,897 as long as they keep doing that, the value of their Bitcoin reserves is going 747 00:50:38,897 --> 00:50:43,257 to continue to go up and likely it's going to overtake their US dollar reserves. 748 00:50:43,477 --> 00:50:48,317 Now, at this point, something that the Tether Fudsters have said would happen 749 00:50:48,317 --> 00:50:49,977 might actually finally happen. 750 00:50:50,097 --> 00:50:54,397 You know, we've always heard that Tether is going to break the peg and maybe 751 00:50:54,397 --> 00:50:57,837 it will happen in this situation because ultimately the real risk for Tether, 752 00:50:58,197 --> 00:51:00,637 the riskiest part of their business is the treasury bonds. 753 00:51:00,757 --> 00:51:03,237 Treasury bonds, which are usually presented as the safe haven, 754 00:51:03,437 --> 00:51:06,317 are actually the main risk for Tether. 755 00:51:06,857 --> 00:51:10,677 And so over time, as their bonds devalue, as their dollars devalue, 756 00:51:11,117 --> 00:51:12,377 their Bitcoins appreciate. 757 00:51:12,617 --> 00:51:19,177 And so therefore, they will be able to break the backing of Tether with the 758 00:51:19,177 --> 00:51:22,117 dollar, but they would break the peg upwards. 759 00:51:22,397 --> 00:51:26,657 In other words, it would be possible for them at some point to revalue Tether upwards. 760 00:51:26,777 --> 00:51:30,717 And so to make it so that one tether is redeemable for $1.02. 761 00:51:31,277 --> 00:51:35,097 And then they could keep doing that further and further. They keep revaluing 762 00:51:35,097 --> 00:51:36,657 it upwards as the dollar drops. 763 00:51:36,797 --> 00:51:41,437 So tether becomes relatively stable coin while the dollar keeps devaluing. 764 00:51:41,517 --> 00:51:47,177 If they offered the world $1 plus 2% per year or 1% per year, that would. 765 00:51:47,927 --> 00:51:50,247 That would be more attractive than the dollar for a lot of people. 766 00:51:50,487 --> 00:51:52,827 I think it would. I mean, people that don't know about Bitcoin. 767 00:51:53,367 --> 00:51:58,447 But Safe points out how this could create sort of a cyclical demand for Tether over the dollar. 768 00:51:58,647 --> 00:52:02,627 And so therefore, we enter into this cycle where Tether can increase its valuation, 769 00:52:02,627 --> 00:52:05,867 which is going to increase demand for Tether at the expense of the dollar, 770 00:52:06,107 --> 00:52:10,367 which is going to then increase the amount of Tether purchases of Bitcoin, 771 00:52:10,607 --> 00:52:13,047 which is going to drive up the Bitcoin price further. 772 00:52:13,567 --> 00:52:17,767 And the key thing here is that even though Tether puts only a small percentage 773 00:52:17,767 --> 00:52:21,707 of its reserves in Bitcoin, because Bitcoin is so much smaller than the U.S. 774 00:52:21,847 --> 00:52:27,127 Debt market, that impact on the Bitcoin market is a lot more significant than 775 00:52:27,127 --> 00:52:33,807 the impact that they have with the majority of the reserves going into the debt, the U.S. 776 00:52:34,207 --> 00:52:38,167 Government debt. In other words, it takes a little bit of money to dramatically 777 00:52:38,167 --> 00:52:43,727 increase their Bitcoin holding value, but it takes trillions of dollars to dramatically 778 00:52:43,727 --> 00:52:45,967 increase the value of their other debt. 779 00:52:46,147 --> 00:52:51,647 So SAFE just then bottom lines all of this for us. So the bottom line is that 780 00:52:51,647 --> 00:52:54,487 even the most bullish scenario for the U.S. 781 00:52:54,547 --> 00:52:57,807 Dollar, even the most imaginable way in which the U.S. 782 00:52:57,887 --> 00:53:04,787 Dollar's fate can be improved, is finding an enormous amount of bag holders 783 00:53:04,787 --> 00:53:06,607 all over the world to buy U.S. 784 00:53:06,667 --> 00:53:11,727 Dollar treasury shitcoins. And yet, even that scenario is a lot more bullish 785 00:53:11,727 --> 00:53:14,507 for Bitcoin than it is for the US dollar. 786 00:53:14,987 --> 00:53:21,287 Ultimately, even a lot of buying of treasuries is likely going to be a lot more bullish for Bitcoin. 787 00:53:21,407 --> 00:53:25,407 It's going to make a lot more of a difference for Bitcoin because of the fact 788 00:53:25,407 --> 00:53:28,627 that Tether is accumulating Bitcoin reserves because it's smart for them to 789 00:53:28,627 --> 00:53:29,687 accumulate Bitcoin reserves, 790 00:53:29,907 --> 00:53:33,687 because this is the best way for them to protect against the devaluation and 791 00:53:33,687 --> 00:53:36,867 the likely default that might happen. 792 00:53:36,867 --> 00:53:42,847 So, I don't really see this as being something that's going to boost the dollar. 793 00:53:43,047 --> 00:53:45,247 I don't think it can make enough of a difference in the dollar. 794 00:53:45,387 --> 00:53:50,067 And on the contrary, I think it's going to be more and more bullish for. 795 00:53:52,080 --> 00:54:01,200 Music. 796 00:54:01,729 --> 00:54:06,249 Let's check in on the state of the network before i scoot this episode is wrapping 797 00:54:06,249 --> 00:54:15,189 up at block height 899 807 the current u.s dollar to bitcoin price is 105 040 798 00:54:15,189 --> 00:54:19,229 that means the sats per dollar right now are sitting at 952. 799 00:54:19,749 --> 00:54:28,989 We're down just 6% from our all-time high, which was set pretty recently on May 22nd at 111,980. 800 00:54:29,729 --> 00:54:35,029 There are 21,957 nodes on the network. Oh, that should be 22. 801 00:54:35,909 --> 00:54:38,349 That should be 22. What's going on over there? 802 00:54:39,729 --> 00:54:46,389 Bitcoin knots is currently sitting at 9.9% of the network, a guesstimated count 803 00:54:46,389 --> 00:54:49,989 of 2,171 Bitcoin knots nodes. 804 00:54:51,409 --> 00:54:57,269 Bitcoin Core 28 is the largest at 19%. It'll be interesting to watch that over 805 00:54:57,269 --> 00:54:58,469 the next year and see if that changes. 806 00:54:58,969 --> 00:55:01,089 Look at everything just chugging right along. 807 00:55:01,809 --> 00:55:05,429 Fee rate right now is two sats of eBite. Pretty easy if you want to rebalance 808 00:55:05,429 --> 00:55:09,229 the channel or consolidate some UTXOs right now, pop in and out of liquid. 809 00:55:09,349 --> 00:55:13,469 It's a great time to do it. The Bitcoin network is growing and is very strong. 810 00:55:13,469 --> 00:55:26,589 We'll be right back. 811 00:55:15,600 --> 00:55:29,200 Music. 812 00:55:28,029 --> 00:55:32,469 Well, if you made it this far, links are at thisweekinbitcoin.show. 813 00:55:33,289 --> 00:55:36,769 I went to .com and it didn't work. Oh, yeah, right, idiot. It's not show. 814 00:55:37,209 --> 00:55:40,669 My goal, and I hope I got there, is to make a show for you that doesn't get 815 00:55:40,669 --> 00:55:43,909 distracted by the emotions or the politics around what is happening, 816 00:55:43,969 --> 00:55:45,129 but focuses on the signal, 817 00:55:45,649 --> 00:55:49,929 really focuses on the alpha for the Bitcoin users and adopters out there so 818 00:55:49,929 --> 00:55:52,789 you can make the best decision for you, your family, and your business. 819 00:55:52,949 --> 00:55:55,929 So let me know how I did with the boost. Episode 60 is next week. 820 00:55:56,009 --> 00:55:57,129 I'd love to hear a shout out from 821 00:55:57,129 --> 00:56:00,189 you and read your message in the 60th episode of This Week in Bitcoin. 822 00:56:00,529 --> 00:56:03,869 And don't forget, we're playing a track here. And when you boost during the 823 00:56:03,869 --> 00:56:06,829 music, 95% of your sats go to the artists and their team. 824 00:56:07,029 --> 00:56:12,629 And this week, I'm pretty stoked because we got the last song to number one and that's neat to see. 825 00:56:13,109 --> 00:56:16,709 But this week, I'm going to play one of the OG value for value tracks. 826 00:56:16,969 --> 00:56:20,149 They haven't gotten a shout out in a very long time. They were one of the very 827 00:56:20,149 --> 00:56:23,289 first on the scene, one of the very first I ever played on air. 828 00:56:23,509 --> 00:56:26,349 And I think it's about time that got some love on This Week in Bitcoin. 829 00:56:26,629 --> 00:56:31,089 So we're going to wrap up this week with an artist known as Empathize and it's 830 00:56:31,089 --> 00:56:34,229 their track, Shadow Man. Thank you for joining me, and I will see you right 831 00:56:34,229 --> 00:56:35,509 back here next week. Thank you. 832 00:56:36,080 --> 00:59:46,918 Music.