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In 2020, the beginning of COVID, this was around the early part of the year, 2020.

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If you recall, we were vaulting our gold in Switzerland, these private vaults in Switzerland.

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The Swiss government grounded the airplanes.

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They said no one can take off, no one can land.

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So what this meant was, I woke up in the middle of the night and I realized,

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if one of my clients called me, one of my investors called me and they said,

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Alex, I want you to deliver $20 million in gold bars to this country over here

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and this vault over here. I could not do that because the planes couldn't take

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off. So this is what you call a failure to deliver

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in the gold industry. This is bad. It's not good. It's not good for your reputation.

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You could say it was because of COVID, but whatever. You still had a failure to deliver

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in gold. To have final settlement, you have to move the gold from one

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possession to another. Okay? This requires people.

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The guys at the vaults, the guys in the trucks, security trucks, the ground crew, air crew, all these people.

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The same thing on the other side.

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And I realized, oh, any one of these people can mess this up.

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And then I thought about Bitcoin because I was studying Bitcoin at the time.

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And I'm like, wait a minute.

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With Bitcoin, I can send any new value to the other side of the planet basically instantly

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because it's going across the internet at the speed of light.

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At almost no cost, no one can stop me, and with no one's permission,

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and i was like

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hello guys welcome once again to bitconner podcast uh today we have a very interesting episode

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uh you'll find out why but first i just want to say that i hope that you have enjoyed the

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two-part series of the episode 100 of Bitcoin,

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of Bitcoin podcast.

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But it's not just me.

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As you can,

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as you can see,

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we also made this amazing episode with Bitcoin Film Fest,

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where we exposed Hollywood.

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But again,

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we took so long to do this episode because we don't chase the news.

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So it was the topic.

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Even we talk about Warner Bros deal with Paramount and Netflix.

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we wanted to digest why

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Hollywood was broken

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and to do that

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also we needed to explore

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the monetary system

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so we deep dined

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really into it a lot

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so that's why we took a lot of time

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doing it and

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now we are providing the solution

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how Bitcoin can help

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especially independent creators

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or even filmmakers

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to resolve some issues

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where the system is broken.

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But as you can tell in the first part,

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everything comes to the money,

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but more than beyond that,

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it comes to the system.

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But anyways, I hope that you enjoyed

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the second part this Friday.

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But we will continue today

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to something refreshing.

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And I know you know that

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I like to do both parts,

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some episodes in English,

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some episodes in Spanish,

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This one, of course, is English.

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And I was doing some research more about gold.

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And more than that, keep digging why the system is broken.

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Because a few weeks ago, we had Lawrence Leper, Larry.

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And he provided a huge insight, as you know, about mostly the history of America and how we led to the present.

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so today we want to explore more

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and I know this person is also a friend of Larry

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and I have been personally following him

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from a couple months ago as well

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because we provide a lot of insights also in gold and microeconomics

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so we want to keep learning guys

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I'm just like you, I'm learning every single episode

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but again, I don't want to take more time

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introducing this person

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so I just want to welcome Alex Stansky

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to Bitcoin Podcast. Welcome. Thank you. Thanks for having me. Thanks to you. So yeah, well,

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normally I like to start a podcast. Sometimes I forget and people tell me, hey, but you don't

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give enough time to introduce your guest. So if you can share a little bit about your background

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before we start on this madness. Sure. Okay. So I've had a number of different careers coming

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out of high school I went in the U.S. military and I was deployed in Operation Desert Storm for

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that period of time in my life. When I got out of the military I went into IT. I started a little

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IT company and did a bunch of IT consulting. Did some consulting for like Verizon and some other

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companies. I ended up becoming a director of IT for the largest aerospace union in the United

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States. And then at the same time, we kind of made this little company on the side that

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we were creating. We were one of the first video over IP companies. Ours was decentralized

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though. This was around the time that YouTube was in alpha. So they're just testing this

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technology and still the pipes were not very big. So this was back when internet was like,

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you know very small like 500 and uh 512k maybe something like that bandwidth like one megabyte

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bandwidth i can remember when one megabyte wow that's crazy it's crazy right like today like my

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my connection today is like a one gigabyte one gigabyte you can even you cannot even compare how

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the technology it's unbelievable difference uh but back then you couldn't really do high fidelity

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video because the pipes were so small, you know, there was no bandwidth to do it.

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So we were actually doing decentralized video.

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The idea was kind of like a Napster or something like that where the video was spread out across

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like hundreds of computers.

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And then if I want to watch it, I'm pulling video or pieces of data from all these different

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computers.

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And it took weeks, I remind you.

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Yeah.

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To them.

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Yeah, it was crazy.

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and we actually went to

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Netflix at one point

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I remember we went to one of their executives

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and we showed them our demo of our technology

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and we said hey

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how old is Netflix?

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I want to know that

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I don't know

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I'm not sure when they started

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but when this was happening

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I want to say this was around

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2005, 2006

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time frame

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and

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And maybe even a little, well, that time frame.

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Okay.

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And I can remember going in and showing it to them.

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And this was at the time Netflix, when they started,

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they were shipping DVDs in the mail of videos, right?

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And we showed them our technology and we said,

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look, we think that video eventually is going to go over the internet.

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People are just going to use it over the internet.

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They laughed at us.

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They laughed at us right out of the office.

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They're like, no way.

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We ship videos in the mail.

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We don't do that, right?

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Funny.

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We were just too early, basically.

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So I sold my position in that company,

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ended up moving down to Central America, Panama.

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We were talking about this a little earlier.

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Panama for almost a decade.

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I started in the gold business,

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and I met some very interesting people who were in that industry

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and started learning from them, and I started a physical gold fund.

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Two of them.

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The first one was out of Luxembourg.

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That was horrible.

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Pro tip, never start a gold fund in Luxembourg.

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The fees will kill you.

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So we closed that.

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We opened another one, and that one ran for a long time,

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and our investors did pretty good.

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Excuse me, but this was basically our physical operations

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were out of Switzerland.

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and it was during this period of time actually that I started researching Bitcoin more deeply

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it was probably 2019 to 2020 time frame when I started researching more deeply

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going down the rabbit hole as people say

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talking to gold investors on the phone and then hanging up the phone

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and I open up a book on Bitcoin and I'm reading books on Bitcoin

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so at this point I'm starting to figure out

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man, I'm spending all this time researching Bitcoin.

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At one point I realized I need to switch.

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So then after that, towards the end of 2020,

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I talked to my partners in the gold fund.

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I was like, I need to wrap this up because I'm going to go work in Bitcoin.

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2021, I started shortlisting companies.

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Well, I just knew.

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I was like, and we can get into that story as to why I made that decision.

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but I just knew that like, this is the future.

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And so 2021, early 2021, I was shortlisting companies.

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I was like, I really want to work in this space.

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I think it was January of 2021, Corey Clipston,

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who's the CEO of Swan Bitcoin.

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I saw him tweet out one day.

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He's like, hey, we're looking for high net worth relationship managers.

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with people who can talk to high net worth people about Bitcoin.

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I'm like, hey, I can help you with that.

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I've got experience doing this kind of stuff.

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Not with Bitcoin, but in gold.

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And so we started a conversation.

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I was like, I think I can help you.

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And it turns out I talked to him for a couple of weeks.

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We had a couple of interviews, so on and so forth.

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And he's like, hey, I can't hire you because I hired Stefan Lavera instead.

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Oh, wow.

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I didn't know that.

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And I was like, you know, if it was me and I had to choose between Alex and Stefan Levera, I probably would have bet Stefan Levera as well.

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Just being honest.

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He's an amazing guy. He's really smart.

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Shout out to Stefan.

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Anyway, I was persistent because I was like, you know, I want to work in the industry.

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I just stayed in touch with Corey.

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And by the way, this is a lesson to people who, if you're interested in working in Bitcoin, number one, do something, teach something, start a meetup, write a book, do pods, do something to help educate and push the mission forward.

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right and if you do that and you create a footprint if you go talk to a bitcoin company

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and you can point to your proof of work that is way better than having no proof of work

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right it's true yeah so anyway i just stayed in touch with with

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cory and eventually towards the end of the year um

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um at one point you know i was just like hey man put me in coaching he was like okay cool

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So I started in October of 2021 with Swan.

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I worked with a private wealth group at Swan and stayed there for almost four years-ish.

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And in that period of time, helped thousands and thousands of clients, taught them about Bitcoin, helped them buy Bitcoin, helped them do self-custody, helped them do multi-sig, whatever it was they were looking to do.

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and probably 400 ish million dollars worth of bitcoin converted us dollars into bitcoin which

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is today is worth probably close to a billion um and then so that's my that's my story

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wow that's crazy you know that's something that i admire and at the same time i think like

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because i was thinking as you had the same thing that i think about larry because you guys i mean

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you have been working with gold so it's not like you're working with a few pennies let's be honest

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so in order to in order to pivot to bitcoin you actually need to understand that because in the

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least capital risk that you're doing that you need to understand what you're doing you want in the

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end if you have a company uh you'll make sure that all your clients or even your your funds or

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your savings will be uh safe so yeah just to pivot on bitcoin you need to do like a huge

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research about this right so yeah it's crazy that the amount of time that people need to put to

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understand this but once you understand the system just start like we were talking about at the

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beginning just start opening a lot of rabbit holes and you start seeing that a lot of things are

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broken uh so yeah and those are the things that we're going to discuss but also i want to ask you

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like uh because i what i like to do in the podcast is like you know like a journey like the

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the previous then the context and then the resolution so i want to ask you also uh about

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in your first date like when do you personally first start buying like physical gold what is

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your story with the gold so the story with the gold is is that um i grew up going i was going

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to high school in the late 80s all right sort of dating myself a little bit but just to give context

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at the time I was in school

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like generally speaking

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if a person could make a six figure income

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that was like you were like rich

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like you were doing really really well

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back then that was a lot of money

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so to put that in perspective

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in today's dollars that would probably be

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I'm going to say 500k and up annually

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to have the same purchasing power

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somewhere like that okay okay okay so um anyway when i started making that kind of money working

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in it was low six figures but i breached that six figure threshold and i was so excited about that

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i'm like i've made it right and i'm like i should be rich now but i wasn't and that was very confusing

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to me i was like how come you know shouldn't i have just piles of cash and like mansions and

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all the things right now not really right um and it wasn't until when i had moved to panama

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and i had met these guys that were part that were in the gold industry and just late very late at

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night at my house i remember we had this house it was uh it was in this area called betacruz

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which is kind of i guess it would be west of panama city um into the interior a little bit we

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we had a house overlooking the ocean and kind of in the jungle basically.

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And,

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um,

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so very late at night,

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it was like two o'clock in the morning.

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We're drinking wine,

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talking to these guys.

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And,

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uh,

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00:15:28,260 --> 00:15:31,000
this one guy explained to me what causes inflation.

243
00:15:32,700 --> 00:15:36,560
It's basically the government of America can just print as much money as they

244
00:15:36,560 --> 00:15:36,940
want.

245
00:15:37,480 --> 00:15:39,760
And when you add money to the money supply,

246
00:15:39,840 --> 00:15:42,900
it causes the purchasing power of the individual units of money to go down.

247
00:15:42,900 --> 00:15:49,580
i had never heard this before and that was like a wait a minute

248
00:15:49,580 --> 00:15:54,860
like we have to work for the money and they can just print it and they're like yeah

249
00:15:54,860 --> 00:15:59,420
and i was like that's messed up

250
00:15:59,420 --> 00:16:06,440
do you believe it because it's super shocking that it's like i believed it because it started

251
00:16:06,440 --> 00:16:11,820
to make sense i was like well that explains why if you're now making 100 grand a year or whatever

252
00:16:11,820 --> 00:16:17,820
you think you're going to be rich, but you're not because it buys less and less and less and less as time goes on.

253
00:16:18,840 --> 00:16:24,100
So at a target rate of – I'll give you an example mathematically what that means for people who have not heard this before.

254
00:16:25,220 --> 00:16:33,200
You've heard the Fed chairman say – I'm talking about the Federal Reserve of the United States – say that they target a 2% rate of inflation.

255
00:16:33,200 --> 00:16:42,880
What that really means is that every 35 to 50 years, I'm going to give it a span because it goes up and down.

256
00:16:42,960 --> 00:16:48,640
I'm just saying in that range, every 35 to 50 years, your purchasing power is cut in half.

257
00:16:50,140 --> 00:16:54,340
So by the time you're retirement age, you can work your whole life.

258
00:16:54,460 --> 00:16:58,240
All the money that you saved up has half the purchasing power.

259
00:16:58,320 --> 00:17:01,460
They stole half your purchasing power through inflation.

260
00:17:01,460 --> 00:17:04,760
and that started me down

261
00:17:04,760 --> 00:17:07,100
this rabbit hole of understanding money

262
00:17:07,100 --> 00:17:07,880
and just

263
00:17:07,880 --> 00:17:10,220
for probably the next

264
00:17:10,220 --> 00:17:12,820
I don't know, two, three years, four years straight

265
00:17:12,820 --> 00:17:14,940
I just spent six to eight hours a day

266
00:17:14,940 --> 00:17:17,240
just studying monetary history

267
00:17:17,240 --> 00:17:18,360
monetary theory

268
00:17:18,360 --> 00:17:20,580
so on and so forth

269
00:17:20,580 --> 00:17:22,340
and this is really what got me into gold

270
00:17:22,340 --> 00:17:23,740
I was like holy crap

271
00:17:23,740 --> 00:17:25,580
I need to buy a bunch of gold

272
00:17:25,580 --> 00:17:26,700
and that's what I did by the way

273
00:17:26,700 --> 00:17:27,540
I bought a bunch of gold

274
00:17:27,540 --> 00:17:30,800
and this was around 2008

275
00:17:30,800 --> 00:17:36,360
you know the whole real estate crash was starting to happen in the United States of America

276
00:17:36,360 --> 00:17:41,300
I was calling all my friends back in the States saying sell everything buy gold

277
00:17:41,300 --> 00:17:47,480
all that real estate you got it's in deep trouble like I was really earlier we thought it was crazy

278
00:17:47,480 --> 00:17:56,020
yeah but yeah that's that's how I got into the gold industry okay that's crazy I'm just thinking

279
00:17:56,020 --> 00:18:02,600
two things right now one is that well first i'll give you actually one is a comment and then another

280
00:18:02,600 --> 00:18:12,240
is a question uh that uh i start i start having some insights let's say about inflation

281
00:18:12,240 --> 00:18:21,720
in the 2000s in el salvador because in 2000 i think 2001 uh we switched our currency we had

282
00:18:21,720 --> 00:18:29,520
colones and and then we had dollars and and the reason that the government explained that we were

283
00:18:29,520 --> 00:18:35,360
starting adopting dollars is because we're starting to high to have some inflation high inflation so

284
00:18:35,360 --> 00:18:41,220
they say that eventually probably we will have the same path that argentina had with the corralito

285
00:18:41,220 --> 00:18:47,080
you know and super high inflation so it was like a way to to avoid that and i remind that we went

286
00:18:47,080 --> 00:18:48,920
when we adopted the dollars,

287
00:18:49,820 --> 00:18:54,940
back then I was probably a teenager.

288
00:18:55,180 --> 00:18:58,540
So I started knowing a little bit about how money works,

289
00:18:58,640 --> 00:19:00,480
but of course not like now.

290
00:19:01,000 --> 00:19:07,920
But I just remind that families that normally work well,

291
00:19:07,920 --> 00:19:09,280
have their savings and whatever,

292
00:19:10,100 --> 00:19:16,860
they start struggling because back then the dollar worth,

293
00:19:17,080 --> 00:19:19,620
8.75 colones.

294
00:19:20,380 --> 00:19:22,720
So it's the same thing that you say.

295
00:19:22,820 --> 00:19:24,160
It's like, imagine one day they say,

296
00:19:24,240 --> 00:19:26,840
hey, all your savings is going to be divided by nine.

297
00:19:27,380 --> 00:19:30,760
So it was crazy.

298
00:19:31,880 --> 00:19:35,520
And I saw that even more with my grandparents

299
00:19:35,520 --> 00:19:38,120
or people from that generation

300
00:19:38,120 --> 00:19:39,820
that worked their entire life

301
00:19:39,820 --> 00:19:42,180
and now they're like, hey, but now their savings

302
00:19:42,180 --> 00:19:43,560
is cut by nine.

303
00:19:44,260 --> 00:19:46,020
So yeah, it was crazy.

304
00:19:46,020 --> 00:19:50,520
And little by little, eventually, we just pivot to the dollars.

305
00:19:51,800 --> 00:19:54,060
But the other thing that you mentioned is about the 2%.

306
00:19:54,060 --> 00:19:56,620
That's something that I still quite don't understand

307
00:19:56,620 --> 00:20:00,160
because I have been doing some research about it.

308
00:20:00,640 --> 00:20:04,140
But when they do this calculation, they don't measure everything, right?

309
00:20:04,500 --> 00:20:07,200
They put some things, or actually, I better say that,

310
00:20:07,440 --> 00:20:11,160
they don't take into account so many things when they do these calculations.

311
00:20:11,160 --> 00:20:20,620
and so in the end that's a very fictional percentage right yes it's absolutely made up

312
00:20:20,620 --> 00:20:26,480
and they change it all the time so if you go back to the 80s they had a specific

313
00:20:26,480 --> 00:20:31,160
formula that they would use to measure inflation in the United States of America

314
00:20:31,160 --> 00:20:36,800
and certain rules around how this works and I'm trying to think of the name I don't know if this

315
00:20:36,800 --> 00:20:40,300
there was a guy that used to run a website I think it was called shadow stats

316
00:20:40,300 --> 00:20:43,160
I don't know if that's still a thing

317
00:20:43,160 --> 00:20:44,220
or if he still runs it

318
00:20:44,220 --> 00:21:00,118
but he tracked all of the changes in how they do the formula over time And they do It still running It still running Okay So you can see based upon the 1980s formula that they originally used

319
00:21:00,118 --> 00:21:02,318
what the inflation would look like today.

320
00:21:02,878 --> 00:21:05,598
And it's very different than what the government's telling you.

321
00:21:06,418 --> 00:21:08,098
And here's the interesting thing.

322
00:21:08,358 --> 00:21:10,578
When you have governments with runaway inflation,

323
00:21:11,138 --> 00:21:12,958
they always lie about it.

324
00:21:12,958 --> 00:21:17,858
And every, like, just look around every country this has ever happened in.

325
00:21:17,938 --> 00:21:19,578
Just look at what the government is saying.

326
00:21:19,958 --> 00:21:23,358
They always under-report how bad the inflation is.

327
00:21:24,638 --> 00:21:27,478
And so in America, they just change the rules.

328
00:21:27,718 --> 00:21:31,398
They're like, okay, one day inflation means these things,

329
00:21:31,558 --> 00:21:35,278
and then, you know, X years later, it means something else completely.

330
00:21:35,278 --> 00:21:38,078
And they just keep changing it and changing and changing it

331
00:21:38,078 --> 00:21:41,938
to make the numbers seem lower than it actually is.

332
00:21:42,958 --> 00:21:44,398
Now, why would they do this?

333
00:21:44,458 --> 00:21:46,158
Some people would be like, oh, that just sounds crazy.

334
00:21:46,258 --> 00:21:48,078
They have an incentive to do this.

335
00:21:48,138 --> 00:21:48,298
Why?

336
00:21:48,398 --> 00:21:51,018
Because there's this thing called cost of living increase.

337
00:21:52,078 --> 00:21:57,578
There's a mathematical calculation that's used to determine how much they pay out in Social Security,

338
00:21:57,938 --> 00:22:00,938
how much they pay soldiers, how much they pay government workers.

339
00:22:01,198 --> 00:22:04,318
They have to pay based upon the rate of inflation.

340
00:22:05,518 --> 00:22:08,338
But if the rate of inflation is lower, they pay less.

341
00:22:09,618 --> 00:22:09,978
You see?

342
00:22:09,978 --> 00:22:11,978
So they're incentivized to lie about it.

343
00:22:12,958 --> 00:22:20,938
Either way, the point is, this is a mathematical concept called compounding, right?

344
00:22:21,998 --> 00:22:28,798
If you compound it 2% every single year, the net effect is much greater than if it was 2% one time.

345
00:22:28,798 --> 00:22:39,198
2% doesn't sound like a lot, but if it's 2% 35 times or 50 times, that becomes a lot because of the way the math works, right?

346
00:22:39,978 --> 00:22:41,178
And that's the issue.

347
00:22:41,178 --> 00:22:42,638
that's why people

348
00:22:42,638 --> 00:22:46,318
historically it has happened

349
00:22:46,318 --> 00:22:48,498
slow enough like if you look at the way compounding

350
00:22:48,498 --> 00:22:50,398
works on a graph on a chart

351
00:22:50,398 --> 00:22:52,898
it's very flat for a long

352
00:22:52,898 --> 00:22:54,598
long time maybe 30

353
00:22:54,598 --> 00:22:56,438
years and then it turns a corner

354
00:22:56,438 --> 00:22:58,778
all compounding functions look like this by the way

355
00:22:58,778 --> 00:23:00,278
you can do this on any

356
00:23:00,278 --> 00:23:02,558
I mean compounding basically works where

357
00:23:02,558 --> 00:23:04,478
it's going flat flat flat flat flat then

358
00:23:04,478 --> 00:23:06,518
all of a sudden it turns and it

359
00:23:06,518 --> 00:23:07,298
goes straight up

360
00:23:07,298 --> 00:23:09,998
and we're on the straight up part

361
00:23:09,998 --> 00:23:18,598
right now yeah actually well uh i want to ask of your opinion later about what's going on right now

362
00:23:18,598 --> 00:23:25,598
because it's crazy uh but also one thing that now that you mentioned that yeah why don't they teach

363
00:23:25,598 --> 00:23:34,578
this also it's funny that uh when i started reading books about bitcoin i realized that

364
00:23:34,578 --> 00:23:48,618
Because even I studied engineering, and I know a lot of people in the audience here studied economy or, I don't know, something related to Bitcoin or money or whatever.

365
00:23:49,118 --> 00:23:51,938
I never learned about Austrian economics.

366
00:23:52,098 --> 00:23:57,298
It wasn't until Bitcoin that I learned that there was more type of school of economy.

367
00:23:57,438 --> 00:23:58,258
I was like, what?

368
00:23:58,538 --> 00:23:59,378
What the fuck?

369
00:23:59,878 --> 00:24:03,218
Even in the university, I had a subject that it was economy.

370
00:24:03,218 --> 00:24:05,638
and I never learned about

371
00:24:05,638 --> 00:24:07,058
these things so

372
00:24:07,058 --> 00:24:09,578
there's a reason

373
00:24:09,578 --> 00:24:11,238
for that too like a lot of the

374
00:24:11,238 --> 00:24:13,718
economics courses today are driven

375
00:24:13,718 --> 00:24:15,798
from this sort of Keynesian

376
00:24:15,798 --> 00:24:17,338
kind of

377
00:24:17,338 --> 00:24:18,658
economic framework

378
00:24:18,658 --> 00:24:21,478
and the Keynesian economic framework is

379
00:24:21,478 --> 00:24:23,498
essentially that like yeah central bank

380
00:24:23,498 --> 00:24:24,618
should print the money

381
00:24:24,618 --> 00:24:26,898
and then all of the economists

382
00:24:26,898 --> 00:24:29,318
like the ultimate

383
00:24:29,318 --> 00:24:31,438
pinnacle of success if you're an

384
00:24:31,438 --> 00:24:38,618
economist is to be the chairman of the federal reserve or somewhere in the hierarchy right so

385
00:24:38,618 --> 00:24:44,178
what happens these guys design the curriculum which goes to the colleges and this is what you

386
00:24:44,178 --> 00:24:49,718
get taught it doesn't mean it's right they have an incentive they have a reason to teach you what

387
00:24:49,718 --> 00:24:55,878
they want to teach you right and um what people will find out if they if they study enough or

388
00:24:55,878 --> 00:25:01,838
they find enough really intelligent people they will come to realize that a lot of the stuff you're

389
00:25:01,838 --> 00:25:06,398
taught in school is taught to keep you trapped in a certain system without questioning it

390
00:25:06,398 --> 00:25:12,578
versus actually understanding what's really happening it's very important it's like there's

391
00:25:12,578 --> 00:25:18,198
the there's the set of education that the average people get and then there's the set of education

392
00:25:18,198 --> 00:25:23,278
that the people who run the world get those are two different things they learn two different things

393
00:25:23,278 --> 00:25:26,578
by the way I just looked it up

394
00:25:26,578 --> 00:25:28,998
2% annual rate of inflation

395
00:25:28,998 --> 00:25:30,918
the half life is 36 years

396
00:25:30,918 --> 00:25:32,358
wow

397
00:25:32,358 --> 00:25:34,978
if it's 3.5

398
00:25:34,978 --> 00:25:43,478
20 years

399
00:25:43,478 --> 00:25:45,158
wow

400
00:25:45,158 --> 00:25:47,758
if it's 4.5

401
00:25:47,758 --> 00:25:50,478
yeah of course

402
00:25:50,478 --> 00:25:54,618
15 years

403
00:25:54,618 --> 00:25:56,158
come on

404
00:25:56,158 --> 00:25:58,078
15.75 years

405
00:25:58,078 --> 00:26:01,978
so imagine if you're running 10% inflation

406
00:26:01,978 --> 00:26:04,258
that's crazy

407
00:26:04,258 --> 00:26:06,458
which is actually

408
00:26:06,458 --> 00:26:08,258
it's probably

409
00:26:08,258 --> 00:26:11,278
being honest probably closer to 10% inflation

410
00:26:11,278 --> 00:26:14,078
wow

411
00:26:14,078 --> 00:26:15,838
so this is why young people

412
00:26:15,838 --> 00:26:17,738
the incomes don't keep up

413
00:26:17,738 --> 00:26:20,018
right at least in the United States

414
00:26:20,018 --> 00:26:26,358
I don't know how it is where you are or in Central America, but the incomes do not keep pace with the rate of inflation.

415
00:26:27,258 --> 00:26:28,238
So what does that mean?

416
00:26:28,258 --> 00:26:34,758
It means from the last four generations, this is why the youngest kids today are looking at the price of homes and things like that,

417
00:26:34,778 --> 00:26:37,618
and they're going, there's no way I'm ever going to be able to afford that.

418
00:26:37,678 --> 00:26:38,338
That's impossible.

419
00:26:38,518 --> 00:26:39,518
Math doesn't work.

420
00:26:40,678 --> 00:26:42,578
Well, it doesn't work because they have broken the money.

421
00:26:42,678 --> 00:26:43,358
The money is broken.

422
00:26:45,138 --> 00:26:46,698
And this is not new, by the way.

423
00:26:46,698 --> 00:26:50,298
This idea of broken money, this has been occurring over and over.

424
00:26:50,298 --> 00:26:52,958
There's thousands and thousands of examples of it.

425
00:26:53,758 --> 00:26:54,278
Go study.

426
00:26:54,378 --> 00:26:58,118
I encourage anybody who's listening to this, go study the history of money.

427
00:26:58,618 --> 00:26:59,018
You'll see.

428
00:26:59,138 --> 00:27:03,058
Every fiat currency has one thing in common, all of them.

429
00:27:03,158 --> 00:27:04,638
You know what that thing is?

430
00:27:05,998 --> 00:27:07,998
They all go to zero eventually.

431
00:27:09,158 --> 00:27:09,938
Yeah, of course.

432
00:27:11,358 --> 00:27:12,218
It's crazy.

433
00:27:12,318 --> 00:27:13,158
So what does that mean?

434
00:27:13,158 --> 00:27:17,378
It means that every now and then a country has to reset its currency.

435
00:27:19,438 --> 00:27:25,678
If it's fiat, if they're just printing it from a central bank, they'll have to reset the currency because they're all based upon debt.

436
00:27:26,078 --> 00:27:29,098
The whole system is based upon debt and fractional reserve banking.

437
00:27:29,258 --> 00:27:29,898
What does that mean?

438
00:27:29,958 --> 00:27:32,758
It means they have to keep adding money to the money supply.

439
00:27:32,918 --> 00:27:37,838
If they stop adding it and it goes the other way, that becomes deflationary.

440
00:27:37,838 --> 00:27:43,658
In a debt-based economy, you're now going to start imploding the whole capital structure.

441
00:27:44,918 --> 00:27:46,858
And they don't want this, right?

442
00:27:47,158 --> 00:27:55,918
So now it's at the point where, in the United States at least, it is a mathematical certainty, my opinion.

443
00:27:56,338 --> 00:27:59,638
It's a mathematical certainty that this is now baked into the cake.

444
00:27:59,638 --> 00:28:07,638
the U.S. dollar will continue to become worth less and less

445
00:28:07,638 --> 00:28:10,858
in an accelerated pathway moving forward.

446
00:28:12,118 --> 00:28:13,758
And so now more than ever,

447
00:28:14,238 --> 00:28:17,238
it's very important for people to get their economic energy

448
00:28:17,238 --> 00:28:20,158
out of the fiat currencies into something else.

449
00:28:29,638 --> 00:28:59,618
Thank you.

450
00:28:59,638 --> 00:29:25,278
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460
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461
00:30:02,538 --> 00:30:04,938
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462
00:30:04,938 --> 00:30:07,398
actually I just remind something

463
00:30:07,398 --> 00:30:08,738
that I asked to Larry

464
00:30:08,738 --> 00:30:10,158
and I want to know your opinion

465
00:30:10,158 --> 00:30:12,598
so

466
00:30:12,598 --> 00:30:15,598
in his books he has posed that

467
00:30:15,598 --> 00:30:17,738
the gold

468
00:30:17,738 --> 00:30:19,818
was manipulated by the government

469
00:30:19,818 --> 00:30:22,158
so

470
00:30:22,158 --> 00:30:24,738
my question is that

471
00:30:24,738 --> 00:30:26,178
do you think at some point

472
00:30:26,178 --> 00:30:30,178
Bitcoin can be also manipulated as the way the gold was manipulated back then.

473
00:30:30,778 --> 00:30:31,358
Well, and still.

474
00:30:33,818 --> 00:30:35,378
I think yes and no.

475
00:30:35,518 --> 00:30:42,378
Yes in that maybe short-term manipulation, but not long-term.

476
00:30:42,838 --> 00:30:47,558
By short-term, I mean very short time frame, kind of price swings in sentiment.

477
00:30:48,158 --> 00:30:49,478
Sentiment can be manufactured.

478
00:30:50,838 --> 00:30:51,418
What is sentiment?

479
00:30:51,718 --> 00:30:53,938
Sentiment is general belief, right?

480
00:30:53,938 --> 00:30:55,598
What does the population believe?

481
00:30:56,178 --> 00:30:59,518
you're my puppy.

482
00:31:00,338 --> 00:31:00,678
I'm sorry.

483
00:31:00,778 --> 00:31:00,918
Yeah,

484
00:31:00,978 --> 00:31:01,298
of course.

485
00:31:01,878 --> 00:31:02,858
Don't worry.

486
00:31:04,258 --> 00:31:05,218
We're human people.

487
00:31:05,358 --> 00:31:06,098
We're with our family.

488
00:31:06,618 --> 00:31:06,918
Yeah.

489
00:31:07,218 --> 00:31:07,438
Yeah.

490
00:31:09,098 --> 00:31:12,918
Sentiment is what the human population believes in general.

491
00:31:13,218 --> 00:31:13,518
Right.

492
00:31:13,998 --> 00:31:17,298
And it has been proven that we can create that.

493
00:31:18,398 --> 00:31:19,218
Like if you,

494
00:31:19,298 --> 00:31:21,538
if you look at like what they talk about at Davos,

495
00:31:22,298 --> 00:31:25,738
I'm trying to remember the guy's name,

496
00:31:25,738 --> 00:31:28,018
Harari, he's like the top kind of egghead

497
00:31:28,018 --> 00:31:29,738
guy, talking about how you can basically

498
00:31:29,738 --> 00:31:30,638
manufacture

499
00:31:30,638 --> 00:31:33,198
belief systems

500
00:31:33,198 --> 00:31:35,658
through the use of social media

501
00:31:35,658 --> 00:31:37,938
and through the, this is not a secret

502
00:31:37,938 --> 00:31:40,138
this has been going on for decades and decades

503
00:31:40,138 --> 00:31:42,078
and decades in the United States of America

504
00:31:42,078 --> 00:31:43,598
they're just now, the world is

505
00:31:43,598 --> 00:31:45,978
just now changing because of social media

506
00:31:45,978 --> 00:31:47,878
we can all talk to each other in real time

507
00:31:47,878 --> 00:31:49,798
right?

508
00:31:49,938 --> 00:31:52,118
Instead of you get all your information from

509
00:31:52,118 --> 00:31:53,938
the newspaper or the

510
00:31:53,938 --> 00:31:57,018
university or the television station, right?

511
00:31:57,058 --> 00:31:59,538
We can now get it a completely different way.

512
00:31:59,698 --> 00:32:02,238
Well, they've essentially lost control of that,

513
00:32:02,278 --> 00:32:05,618
but they were still strong enough to manufacture a narrative.

514
00:32:06,058 --> 00:32:06,958
Think of this.

515
00:32:07,038 --> 00:32:08,678
What happened in 2020?

516
00:32:10,798 --> 00:32:14,238
They get the whole world to believe that there's this global pandemic.

517
00:32:15,438 --> 00:32:15,578
Yeah.

518
00:32:15,738 --> 00:32:17,598
That was a created belief system.

519
00:32:17,758 --> 00:32:18,498
They created that.

520
00:32:19,758 --> 00:32:20,558
You follow?

521
00:32:20,558 --> 00:32:25,898
So I think in the short term, yeah.

522
00:32:26,198 --> 00:32:30,738
And here's another example, maybe more practical for what we're talking about.

523
00:32:31,358 --> 00:32:36,358
In Wall Street, there are people, old veteran traders on Wall Street

524
00:32:36,358 --> 00:32:39,778
who would tell you that they manufacture sentiment all the time.

525
00:32:41,458 --> 00:32:44,818
If they're trying to get an equity to go up or down,

526
00:32:44,818 --> 00:32:52,598
they'll throw a certain amount of money at influencing the market they'll start calling

527
00:32:52,598 --> 00:32:58,678
all their friends and creating rumors though they intentionally create these kind of sentiments right

528
00:32:58,678 --> 00:33:07,138
um in the short term it's really funny to me because i see sometimes and i don't it's been

529
00:33:07,138 --> 00:33:10,658
a long time since i've been in the gold industry so i don't know if they're still doing this but

530
00:33:10,658 --> 00:33:12,838
there are people who will say,

531
00:33:13,018 --> 00:33:15,238
well, the idea that gold and silver is manipulated

532
00:33:15,238 --> 00:33:17,078
is just crazy. You guys are a bunch of

533
00:33:17,078 --> 00:33:19,078
conspiracy theorists. And it's like,

534
00:33:19,138 --> 00:33:20,758
no, just look at the fines.

535
00:33:20,898 --> 00:33:22,978
The banks have been fined billions and billions

536
00:33:22,978 --> 00:33:25,038
of dollars for manipulating the price.

537
00:33:25,938 --> 00:33:27,018
That's not imaginary.

538
00:33:27,378 --> 00:33:28,838
It's not some guy making that up.

539
00:33:28,898 --> 00:33:29,578
It's not a conspiracy.

540
00:33:30,438 --> 00:33:31,258
There's fines.

541
00:33:32,638 --> 00:33:34,138
Dozens of them, right?

542
00:33:35,258 --> 00:33:37,058
So the real question is, can you do that?

543
00:33:37,518 --> 00:33:37,698
Huh?

544
00:33:38,638 --> 00:33:39,498
There's the data.

545
00:33:39,498 --> 00:33:42,238
I mean, yeah, it's like proofing.

546
00:33:42,478 --> 00:33:45,758
This is not a, you know, this is not someone just going, oh, we think they're bad.

547
00:33:45,858 --> 00:33:47,198
No, they're doing this stuff.

548
00:33:47,358 --> 00:33:49,238
Like, or they wouldn't be fined, right?

549
00:33:49,578 --> 00:33:53,418
They wouldn't pay the fines, certainly if there wasn't anything there.

550
00:33:54,558 --> 00:34:01,178
So, yeah, in the short term, they're definitely doing that kind of thing.

551
00:34:01,338 --> 00:34:03,078
In the long term, can they do it?

552
00:34:03,118 --> 00:34:03,938
I don't think so.

553
00:34:03,978 --> 00:34:06,878
And the reason why I don't think so is there's a big difference between gold and Bitcoin.

554
00:34:06,878 --> 00:34:17,498
With gold, you have to trust the people who are auditing everything, and you have to assume what they're saying is correct.

555
00:34:19,358 --> 00:34:24,098
Okay, so for example, with GLD, this is the largest gold ETF.

556
00:34:25,138 --> 00:34:28,658
They have a custodian, a primary custodian.

557
00:34:28,798 --> 00:34:30,458
They have audits of the gold.

558
00:34:30,818 --> 00:34:33,938
They have sub-custodians that can also hold the gold.

559
00:34:33,938 --> 00:34:37,638
they don't have access to whether those audits are,

560
00:34:37,798 --> 00:34:39,538
they have like a third party audit.

561
00:34:40,018 --> 00:34:40,858
Does that make sense?

562
00:34:40,898 --> 00:34:43,158
So everybody's just trusting the word of everybody else.

563
00:34:43,798 --> 00:34:44,918
It may be there,

564
00:34:45,018 --> 00:34:45,238
maybe,

565
00:34:45,458 --> 00:34:46,058
maybe it is,

566
00:34:46,118 --> 00:34:47,158
maybe it isn't.

567
00:34:47,198 --> 00:34:48,058
You gotta trust that guy.

568
00:34:48,718 --> 00:34:49,558
Does that make sense?

569
00:34:50,238 --> 00:34:51,678
And then there's also,

570
00:34:51,678 --> 00:34:53,398
um,

571
00:34:53,538 --> 00:34:59,998
big centralized kind of depositories for gold where they do a lot of lease

572
00:34:59,998 --> 00:35:01,998
lending and they do a lot of sort of,

573
00:35:01,998 --> 00:35:02,458
uh,

574
00:35:02,458 --> 00:35:04,358
rehypothecation of the assets

575
00:35:04,358 --> 00:35:06,518
and create all kinds of financial

576
00:35:06,518 --> 00:35:08,458
derivatives around these things.

577
00:35:11,138 --> 00:35:12,658
So there's a way

578
00:35:12,658 --> 00:35:14,478
that they can use that to

579
00:35:14,478 --> 00:35:16,578
kind of play games. I think it's

580
00:35:16,578 --> 00:35:18,578
much less likely with Bitcoin because

581
00:35:18,578 --> 00:35:20,598
the whole supply of Bitcoin is

582
00:35:20,598 --> 00:35:22,018
audited every 10 minutes.

583
00:35:23,118 --> 00:35:24,538
And it's not like you have to

584
00:35:24,538 --> 00:35:26,838
trust this auditor. These are humans,

585
00:35:27,038 --> 00:35:28,558
right? With Bitcoin, that's

586
00:35:28,558 --> 00:35:30,478
not the case. Any one of us can

587
00:35:30,478 --> 00:35:32,218
go look at the blockchain and can see.

588
00:35:32,458 --> 00:35:36,318
we know where all the Bitcoin is at any given moment of time.

589
00:35:36,498 --> 00:35:39,958
We may not know who owns that particular Bitcoin in that address,

590
00:35:40,698 --> 00:35:42,118
but we can count the address.

591
00:35:42,918 --> 00:35:45,618
And we know exactly how much there is.

592
00:35:46,658 --> 00:35:47,678
Does that make sense?

593
00:35:47,678 --> 00:35:56,658
So I think it would be far more difficult to pull the kind of games that they play with gold

594
00:35:56,658 --> 00:36:00,398
if they tried to do that with Bitcoin.

595
00:36:01,798 --> 00:36:02,318
Absolutely.

596
00:36:02,458 --> 00:36:04,278
I'm just thinking now that you say trust,

597
00:36:04,378 --> 00:36:05,718
then I just reminded that.

598
00:36:07,218 --> 00:36:08,758
In the end, what happened with Fort Knox?

599
00:36:09,458 --> 00:36:12,738
Now that you're there in the US, what happened to that?

600
00:36:13,138 --> 00:36:14,358
They didn't out it, right?

601
00:36:14,438 --> 00:36:15,658
And I think they won't do it.

602
00:36:16,538 --> 00:36:17,438
No, I think you're right.

603
00:36:17,938 --> 00:36:21,478
I was just talking to someone else on another pod about this

604
00:36:21,478 --> 00:36:25,518
just the other day where the issue with Fort Knox is,

605
00:36:25,518 --> 00:36:27,518
so normally when you have vaults,

606
00:36:27,518 --> 00:36:34,398
okay let's talk about the professional system of gold for just a minute

607
00:36:34,398 --> 00:36:41,558
yeah go ahead in the institutional trade in gold there's this thing called the good delivery system

608
00:36:41,558 --> 00:36:48,958
this consists of refineries it consists of security companies that are moving the gold around

609
00:36:48,958 --> 00:36:57,158
vaults both private and bank vaults that store the gold and they all know each other and they're

610
00:36:57,158 --> 00:37:00,418
all part of an accredited system, the good delivery system.

611
00:37:01,178 --> 00:37:05,238
Okay, so the way it works is the gold goes

612
00:37:05,238 --> 00:37:08,958
into the refinery. This is a good delivery certified or a good delivery accredited

613
00:37:08,958 --> 00:37:13,078
refinery, right? They melt the gold down, they purify the gold, you get gold bars

614
00:37:13,078 --> 00:37:16,798
out of it, they put a stamp on it with a serial number, the mark from the refiner,

615
00:37:17,098 --> 00:37:21,058
the purity, all those things, right? Then, a

616
00:37:21,058 --> 00:37:24,658
good delivery approved

617
00:37:24,658 --> 00:37:29,978
security company picks the gold up from the refinery, takes it to a vault that is a good

618
00:37:29,978 --> 00:37:36,518
delivery approved vault. This is what I call the good delivery chain of integrity. As long as it

619
00:37:36,518 --> 00:37:41,898
never leaves the system, we have a record of a chain of custody. We know who handled the bars at

620
00:37:41,898 --> 00:37:46,318
all the time, all the time. Because every time the bars move from the, for example, from the

621
00:37:46,318 --> 00:37:50,758
refinery to the truck, they're signing off. They do an inventory. You have every bar, you have every

622
00:37:50,758 --> 00:37:52,818
serial number, they sign it off.

623
00:37:53,638 --> 00:37:54,918
We know these guys

624
00:37:54,918 --> 00:37:56,938
are carrying this gold. If something happens

625
00:37:56,938 --> 00:37:58,758
to the gold, we know those guys did it.

626
00:37:59,558 --> 00:38:00,498
Does that make sense?

627
00:38:01,118 --> 00:38:02,218
So it goes to the vault.

628
00:38:03,118 --> 00:38:04,878
Same thing. It goes in the vault. They do an

629
00:38:04,878 --> 00:38:06,758
audit. They check all the bars,

630
00:38:06,878 --> 00:38:08,398
all the numbers. Everything is legit.

631
00:38:08,638 --> 00:38:10,938
It goes in the vault. Sometimes what they'll do

632
00:38:10,938 --> 00:38:12,718
is they'll put it in the vault and then they

633
00:38:12,718 --> 00:38:14,898
seal the vault with a tamper-proof seal

634
00:38:14,898 --> 00:38:15,838
so that they know

635
00:38:15,838 --> 00:38:18,818
if that seal is

636
00:38:18,818 --> 00:38:20,298
ever broken, somebody went in there.

637
00:38:20,758 --> 00:38:23,758
so this is what they did in Fort Knox

638
00:38:23,758 --> 00:38:26,018
they took all the bars from the refinery

639
00:38:26,018 --> 00:38:27,558
put it in Fort Knox

640
00:38:27,558 --> 00:38:28,958
they closed all the doors

641
00:38:28,958 --> 00:38:30,158
each door has a seal

642
00:38:30,158 --> 00:38:33,098
many of these seals have not been opened

643
00:38:33,098 --> 00:38:34,218
since they put it in there

644
00:38:34,218 --> 00:38:36,498
at least that's what it says on the seal

645
00:38:36,498 --> 00:38:37,698
I haven't been in Fort Knox

646
00:38:37,698 --> 00:38:38,778
but this is my understanding

647
00:38:38,778 --> 00:38:44,138
so the issue that they're running into here

648
00:38:44,138 --> 00:38:47,558
is that you can look at a gold bar

649
00:38:47,558 --> 00:38:49,958
and say yeah I see a gold bar

650
00:38:49,958 --> 00:38:50,998
It's right there.

651
00:38:51,098 --> 00:38:51,858
I picked it up.

652
00:38:51,898 --> 00:38:52,558
It feels heavy.

653
00:38:52,658 --> 00:38:53,358
I can weigh it.

654
00:38:53,438 --> 00:38:56,078
I know how many ounces it's supposed to be.

655
00:38:57,078 --> 00:38:58,498
It has a serial number.

656
00:38:58,578 --> 00:39:00,738
I can record that on a sheet of paper, all the thing.

657
00:39:01,298 --> 00:39:09,778
But the thing is, you can't be totally sure because it looks like gold, feels like gold, weighs like gold.

658
00:39:10,098 --> 00:39:15,018
The only way you actually know is if you put it back through the refinery and melt it.

659
00:39:17,078 --> 00:39:17,518
Okay.

660
00:39:17,818 --> 00:39:18,938
I mean, there's other ways.

661
00:39:18,938 --> 00:39:20,518
You can drill it, so on and so forth.

662
00:39:20,518 --> 00:39:25,878
But I mean, if you really want to know ounce for down to the point zero,

663
00:39:25,998 --> 00:39:30,938
zero, whatever of a Troy ounce, you got to melt it. Right.

664
00:39:31,378 --> 00:39:36,818
And so if you remember Elon and, and, um, and Trump were like, yeah, let's,

665
00:39:36,978 --> 00:39:38,018
let's count the gold bars.

666
00:39:38,018 --> 00:39:41,838
And then they started realizing what it would take to actually prove all of

667
00:39:41,838 --> 00:39:44,998
that. And they're like, nah,

668
00:39:44,998 --> 00:39:53,738
I'm guessing that's what happened I don't know for sure I wasn't in the conversation but I mean

669
00:39:53,738 --> 00:39:59,718
at some point they realized this is not yeah if they didn't get a bus that's that's there's

670
00:39:59,718 --> 00:40:06,018
the most VR reason yeah it's harder it's harder than it sounds like you know what I'm saying like

671
00:40:06,018 --> 00:40:10,058
to actually do it like some people are like well just go look at all the bars like okay you can do

672
00:40:10,058 --> 00:40:10,738
that but

673
00:40:10,738 --> 00:40:12,918
is that really

674
00:40:12,918 --> 00:40:13,598
going to tell you?

675
00:40:13,938 --> 00:40:14,458
I don't know.

676
00:40:16,338 --> 00:40:16,898
Someone's going to

677
00:40:16,898 --> 00:40:17,498
make the argument

678
00:40:17,498 --> 00:40:18,558
well how do you

679
00:40:18,558 --> 00:40:18,818
know?

680
00:40:18,918 --> 00:40:19,318
You don't really

681
00:40:19,318 --> 00:40:19,598
know.

682
00:40:21,478 --> 00:40:22,098
Now I just

683
00:40:22,098 --> 00:40:22,738
reminded that there

684
00:40:22,738 --> 00:40:23,578
was a video in the

685
00:40:23,578 --> 00:40:24,178
internet like

686
00:40:24,178 --> 00:40:25,078
probably I don't

687
00:40:25,078 --> 00:40:25,818
know when was the

688
00:40:25,818 --> 00:40:26,438
last time that it

689
00:40:26,438 --> 00:40:27,518
was probably in the

690
00:40:27,518 --> 00:40:28,578
80s around that

691
00:40:28,578 --> 00:40:30,178
that they invited a

692
00:40:30,178 --> 00:40:32,198
few newspapers

693
00:40:32,198 --> 00:40:33,758
journalists and

694
00:40:33,758 --> 00:40:34,378
they went with a

695
00:40:34,378 --> 00:40:34,878
camera and they

696
00:40:34,878 --> 00:40:35,558
showed but they

697
00:40:35,558 --> 00:40:36,158
just showed one

698
00:40:36,158 --> 00:40:36,378
bulb.

699
00:40:36,878 --> 00:40:37,698
It wasn't a full

700
00:40:37,698 --> 00:40:38,238
audit right?

701
00:40:38,318 --> 00:40:38,758
It was a partial

702
00:40:38,758 --> 00:40:39,038
audit.

703
00:40:39,138 --> 00:40:39,298
Yeah.

704
00:40:40,058 --> 00:40:42,338
That's the one that I'm reminding right now.

705
00:40:43,658 --> 00:40:45,898
And it was funny because they just saw one book.

706
00:40:46,738 --> 00:40:47,338
Yeah, exactly.

707
00:40:48,258 --> 00:40:49,378
But that's a very...

708
00:40:49,378 --> 00:40:52,658
Probably I'm going to add it somehow in this video, guys, so you can watch it.

709
00:40:52,658 --> 00:40:55,558
Fort Knox Depository was built in 1936.

710
00:40:56,038 --> 00:41:01,618
The last time a gold vault was opened for someone other than a Treasury Department official was in 1943,

711
00:41:02,278 --> 00:41:04,178
when President Franklin Roosevelt visited.

712
00:41:04,898 --> 00:41:09,378
Since then, many members of Congress have questioned whether there really is gold in Fort Knox.

713
00:41:09,998 --> 00:41:17,298
Today's tour by a nine-member congressional team headed by Illinois Republican Philip Crane and Kentucky Senator Dean Huddleston proved it.

714
00:41:17,978 --> 00:41:19,678
Crane originally suggested the trip.

715
00:41:20,318 --> 00:41:24,618
It takes three men, each with a different part of a combination, to open the door at the main vault.

716
00:41:25,078 --> 00:41:28,018
The door itself is three feet thick and weighs 20 tons.

717
00:41:28,698 --> 00:41:33,718
Down another hallway, the individual bowl rooms are stacked with the bars, running in numerical sequence.

718
00:41:33,718 --> 00:41:51,716
So nobody actually knows right So there was a partial inspection in 1974 the one you mentioned Okay The last comprehensive audit was apparently 1953 physical count and verification

719
00:41:52,116 --> 00:41:57,576
So what they did at that point is they pulled out the bars, they looked at them, they counted them, they verified them.

720
00:41:57,576 --> 00:42:04,056
Again, do you know, right?

721
00:42:04,256 --> 00:42:04,956
I don't know.

722
00:42:04,996 --> 00:42:11,816
yeah but now it's like 50 years difficulty yeah this is part of the difficulty when you're dealing

723
00:42:11,816 --> 00:42:16,636
with uh when you're dealing with gold there's two main difficulties number one is verification

724
00:42:16,636 --> 00:42:21,916
number two is settlement because settlement requires physical delivery you can settle on

725
00:42:21,916 --> 00:42:28,896
the books like if i'm a let's say i'm a bullion bank in london and i'm sitting on i don't know

726
00:42:28,896 --> 00:42:36,756
500 tons of gold or a thousand tons of gold or whatever it is i can say okay this gold belongs

727
00:42:36,756 --> 00:42:41,096
to this client over here but juan's come to me and he says i want to buy this gold so we're going

728
00:42:41,096 --> 00:42:45,576
to transfer it to him and i make a little entry in my book that says this gold now belongs to juan

729
00:42:45,576 --> 00:42:52,876
but it's still in my vault you don't know if it's actually there you're just going by me going yeah

730
00:42:52,876 --> 00:42:53,636
it's yours now.

731
00:42:53,696 --> 00:42:54,016
Look,

732
00:42:54,256 --> 00:42:54,876
I promise.

733
00:42:55,676 --> 00:42:56,116
Yeah.

734
00:42:56,256 --> 00:42:56,916
And with Bitcoin,

735
00:42:57,136 --> 00:43:00,636
you cannot do that because everyone has a copy of this.

736
00:43:00,816 --> 00:43:01,256
And you know,

737
00:43:01,296 --> 00:43:01,896
without a doubt,

738
00:43:01,956 --> 00:43:02,156
right?

739
00:43:02,156 --> 00:43:04,096
Like if I send a Bitcoin to you,

740
00:43:04,696 --> 00:43:07,916
you're going to see it show up in your wallet at a specific address.

741
00:43:07,916 --> 00:43:11,936
And you will know without a doubt that you have custody or control of that

742
00:43:11,936 --> 00:43:12,336
Bitcoin.

743
00:43:13,196 --> 00:43:14,216
It's not a question.

744
00:43:15,156 --> 00:43:17,536
You're not going to rely upon some other guy saying,

745
00:43:17,776 --> 00:43:19,196
I promise it's yours.

746
00:43:19,496 --> 00:43:20,076
Look right here.

747
00:43:20,076 --> 00:43:20,936
I wrote it in my book.

748
00:43:22,876 --> 00:43:26,136
It's just, we laugh, Kai, because it's so silly.

749
00:43:26,376 --> 00:43:27,136
I mean, it's crazy.

750
00:43:28,056 --> 00:43:30,576
But I mean, Gibbons did it for thousands of years.

751
00:43:30,716 --> 00:43:33,716
Well, at least hundreds of years as far as the modern banking era.

752
00:43:33,836 --> 00:43:36,396
But, you know, we were using gold way before that.

753
00:43:37,516 --> 00:43:38,896
Yeah, it's crazy.

754
00:43:40,896 --> 00:43:42,216
Okay, I have my question.

755
00:43:42,416 --> 00:43:44,376
This is a very interesting conversation.

756
00:43:44,716 --> 00:43:48,716
But I told you, and people know, we have a game in the podcast.

757
00:43:48,716 --> 00:43:53,276
So let's do it now to have a small break.

758
00:43:54,156 --> 00:43:56,356
So audience already know how it works.

759
00:43:56,456 --> 00:43:59,696
My previous guest have a question from my next guest.

760
00:44:01,276 --> 00:44:02,976
So yeah, I'm going to share it to you.

761
00:44:04,576 --> 00:44:07,476
It was made in Spanish, but I put English subtitles.

762
00:44:07,756 --> 00:44:08,696
So you will check it.

763
00:44:08,696 --> 00:44:17,796
Pues mi pregunta es, ¿cuál es el mayor riesgo de Bitcoin? ¿Qué es lo que podría hacer que Bitcoin se destruya?

764
00:44:17,796 --> 00:44:34,556
O al menos la mayor complicación o el mayor reto que tiene Bitcoin para seguir creciendo, no solo en precios, sino en adopción, en crecimiento de todo lo que supone una mejor situación para Bitcoin.

765
00:44:34,556 --> 00:44:37,336
What could Bitcoin be in danger?

766
00:44:37,336 --> 00:44:41,556
Or what could Bitcoin be in danger?

767
00:45:04,556 --> 00:45:06,356
what if kind of thesis, right?

768
00:45:06,416 --> 00:45:08,676
Like what if someday in the future this thing happens?

769
00:45:08,776 --> 00:45:14,956
And it's kind of like you have to think about these kind of possibilities

770
00:45:14,956 --> 00:45:18,676
for purposes of establishing if there's actually a risk or not,

771
00:45:18,736 --> 00:45:20,696
but you also have to weigh the probability.

772
00:45:21,596 --> 00:45:29,156
In other words, there's a non-zero risk that if I walk out of my door

773
00:45:29,156 --> 00:45:33,296
that a plane will fall out of the sky and hit me right in the face.

774
00:45:34,556 --> 00:45:35,496
That could happen.

775
00:45:36,736 --> 00:45:40,256
Very, very small chance of occurring, right?

776
00:45:40,756 --> 00:45:45,716
So the question is, do I operate my life based upon this tiny, tiny, tiny little risk?

777
00:45:46,716 --> 00:45:50,856
Or do I operate my life on the probability that that's not going to occur?

778
00:45:50,956 --> 00:45:53,196
Otherwise, I'm just going to stay in my house and hide every day.

779
00:45:54,176 --> 00:45:54,776
Does that make sense?

780
00:45:54,776 --> 00:45:57,816
So you have to look at things like this the same way.

781
00:45:58,656 --> 00:46:02,596
What is the probability that quantum is a risk?

782
00:46:02,796 --> 00:46:03,956
Today, zero.

783
00:46:04,556 --> 00:46:08,896
10 years from now, maybe 5% or less.

784
00:46:09,956 --> 00:46:12,236
I just think we have a long, long way to go.

785
00:46:12,696 --> 00:46:15,136
And even if it starts to become a threat,

786
00:46:15,476 --> 00:46:22,016
what people need to realize is Bitcoin is like the weakest target.

787
00:46:22,196 --> 00:46:25,956
Why are you – look, there's $900 trillion of assets in the world.

788
00:46:26,096 --> 00:46:29,376
If you have quantum that can break Bitcoin, you can break banking,

789
00:46:29,516 --> 00:46:32,096
you can break SSL, you can break nuclear launch codes,

790
00:46:32,096 --> 00:46:34,156
you can break government encryption,

791
00:46:34,156 --> 00:46:36,916
you can book all kinds of stuff that's worth way more than Bitcoin.

792
00:46:37,516 --> 00:46:39,256
If you're sitting here worried about Bitcoin,

793
00:46:39,656 --> 00:46:42,456
you got much bigger problems, right?

794
00:46:43,636 --> 00:46:46,416
But the last part of that is with Bitcoin,

795
00:46:46,516 --> 00:46:48,756
you can just change it to say,

796
00:46:48,936 --> 00:46:53,056
we're going to make quantum resistant addresses, for example.

797
00:46:53,916 --> 00:46:55,076
And that's just an upgrade.

798
00:46:56,216 --> 00:46:59,576
So I'm not super worried about that part.

799
00:46:59,576 --> 00:47:08,876
I do worry sometimes that maybe developers get influenced by powerful people.

800
00:47:10,816 --> 00:47:21,396
But at the end of the day, even that is not, if that is my biggest worry, I would say that even that is not that bad because Bitcoin is open source.

801
00:47:22,796 --> 00:47:26,256
You can choose to use a version of it or you can choose not to.

802
00:47:26,256 --> 00:47:27,676
right

803
00:47:27,676 --> 00:47:28,436
how many

804
00:47:28,436 --> 00:47:30,976
Linux is open source

805
00:47:30,976 --> 00:47:31,556
this is the thing

806
00:47:31,556 --> 00:47:32,096
that most people

807
00:47:32,096 --> 00:47:32,716
are familiar with

808
00:47:32,716 --> 00:47:33,776
this operating system

809
00:47:33,776 --> 00:47:34,356
called Linux

810
00:47:34,356 --> 00:47:34,716
right

811
00:47:34,716 --> 00:47:35,456
yeah absolutely

812
00:47:35,456 --> 00:47:36,136
how many versions

813
00:47:36,136 --> 00:47:36,916
of that are there

814
00:47:36,916 --> 00:47:39,296
if you have one

815
00:47:39,296 --> 00:47:40,296
branch

816
00:47:40,296 --> 00:47:41,116
that's going

817
00:47:41,116 --> 00:47:41,816
a certain way

818
00:47:41,816 --> 00:47:42,556
and everybody's like

819
00:47:42,556 --> 00:47:43,396
I don't like that

820
00:47:43,396 --> 00:47:44,616
we're going to go

821
00:47:44,616 --> 00:47:45,176
with this one

822
00:47:45,176 --> 00:47:46,356
that makes sense

823
00:47:46,356 --> 00:47:47,896
that is protecting us

824
00:47:47,896 --> 00:47:50,836
it's really that symbol

825
00:47:50,836 --> 00:47:51,676
it's a matter of choice

826
00:47:51,676 --> 00:47:52,156
so I don't worry

827
00:47:52,156 --> 00:47:52,956
about those things

828
00:47:52,956 --> 00:47:55,796
what is important

829
00:47:55,796 --> 00:47:57,896
for adoption. What is important for adoption

830
00:47:57,896 --> 00:47:59,956
at this point, I think, is that Bitcoiners

831
00:47:59,956 --> 00:48:00,956
realize that

832
00:48:00,956 --> 00:48:03,676
people who are sovereign money-minded

833
00:48:03,676 --> 00:48:06,076
make up a very small percentage of the population.

834
00:48:07,776 --> 00:48:09,296
Maybe less than 2%.

835
00:48:09,296 --> 00:48:13,896
So, if that is the case, and we have

836
00:48:13,896 --> 00:48:14,376
reached

837
00:48:14,376 --> 00:48:18,076
adoption of somewhere like 1-2%,

838
00:48:18,076 --> 00:48:19,896
we might be close to saturating that

839
00:48:19,896 --> 00:48:21,496
addressable market.

840
00:48:22,296 --> 00:48:24,016
The rest of humanity doesn't

841
00:48:24,016 --> 00:48:28,656
necessarily think about Bitcoin that way. They don't worry about it necessarily, right?

842
00:48:29,976 --> 00:48:35,276
Inflation is not the driver. If that was true, well, everybody in Argentina would be using Bitcoin

843
00:48:35,276 --> 00:48:40,796
instead of Tether or whatever else they're using, right? So inflation is not necessarily the driver.

844
00:48:42,096 --> 00:48:47,476
Ease of use has got to be the driver. It's got to be simple. People have to be like, okay,

845
00:48:47,756 --> 00:48:52,276
just tell me this thing's going to work. When people get on an airplane, all they care about

846
00:48:52,276 --> 00:48:54,536
is the plane takes off and flies from A to B.

847
00:48:55,056 --> 00:48:56,396
They don't care how the engines work.

848
00:48:56,816 --> 00:48:58,516
They don't care about aerodynamic lift.

849
00:48:58,776 --> 00:49:00,156
They don't care about any of that stuff.

850
00:49:00,216 --> 00:49:02,296
They want to go in, sit down, put their seatbelt on,

851
00:49:02,336 --> 00:49:03,656
and they want to go to where they're trying to go.

852
00:49:03,696 --> 00:49:04,416
That's all they care about.

853
00:49:05,256 --> 00:49:06,056
Does that make sense?

854
00:49:06,996 --> 00:49:08,096
It's very similar.

855
00:49:08,516 --> 00:49:10,056
Human beings don't do things

856
00:49:10,056 --> 00:49:12,636
because they want to know everything and how it works.

857
00:49:12,856 --> 00:49:14,236
You get in your car and you drive.

858
00:49:14,376 --> 00:49:16,856
Do you need to know how the engine was designed?

859
00:49:18,056 --> 00:49:18,816
Do you care?

860
00:49:18,816 --> 00:49:19,856
Most people don't care.

861
00:49:20,476 --> 00:49:20,996
No, they don't care.

862
00:49:20,996 --> 00:49:23,336
So we have to understand that.

863
00:49:23,416 --> 00:49:26,056
We have to realize that where people are going to come,

864
00:49:26,056 --> 00:49:32,476
we have to meet people where they are and accept their perspective.

865
00:49:32,876 --> 00:49:35,396
And if they want to learn, teach them for sure.

866
00:49:35,896 --> 00:49:40,376
But don't try to make them believe what you believe in order to use Bitcoin

867
00:49:40,376 --> 00:49:42,096
because they're not going to be interested in that.

868
00:49:42,736 --> 00:49:44,356
So this is the adoption question.

869
00:49:44,436 --> 00:49:48,856
How do we reach this next segment as we need to make it easier?

870
00:49:48,856 --> 00:49:51,296
and we need to show them how does this help you.

871
00:49:53,416 --> 00:49:57,056
Because you can rant on about how the Federal Reserve is horrible all you like,

872
00:49:57,116 --> 00:49:58,396
but they probably don't care.

873
00:49:59,896 --> 00:50:00,256
Absolutely.

874
00:50:01,276 --> 00:50:01,476
Yeah.

875
00:50:02,716 --> 00:50:05,396
As you say, when you use a car or something,

876
00:50:05,576 --> 00:50:07,216
you don't need to know how the engine works.

877
00:50:07,576 --> 00:50:08,236
You just use it.

878
00:50:08,876 --> 00:50:10,016
It's like you use the internet.

879
00:50:10,016 --> 00:50:12,456
You don't need to know the protocol or HTTP.

880
00:50:12,896 --> 00:50:13,676
You just use it.

881
00:50:14,596 --> 00:50:14,996
Exactly.

882
00:50:14,996 --> 00:50:18,876
and if you're using that as a comparison

883
00:50:18,876 --> 00:50:21,396
when I got out of the military

884
00:50:21,396 --> 00:50:22,356
I started a company

885
00:50:22,356 --> 00:50:25,016
and this was at the time where the way you connect to the internet

886
00:50:25,016 --> 00:50:26,956
was to use the dial-up modem

887
00:50:26,956 --> 00:50:28,976
I don't know if you maybe are too young

888
00:50:28,976 --> 00:50:30,156
I don't know if you remember this

889
00:50:30,156 --> 00:50:33,236
but it used to be when your computer connected to the internet

890
00:50:33,236 --> 00:50:35,956
it actually connected to a phone line

891
00:50:35,956 --> 00:50:36,576
yeah

892
00:50:36,576 --> 00:50:38,276
beep beep beep

893
00:50:38,276 --> 00:50:41,216
and the computer and the other one would screech

894
00:50:41,216 --> 00:50:42,736
it would make this screeching noise

895
00:50:42,736 --> 00:50:43,776
sound like a fax machine

896
00:50:43,776 --> 00:50:45,876
and then they would screech at each other for a minute

897
00:50:45,876 --> 00:50:46,976
and then they would handshake

898
00:50:46,976 --> 00:50:48,596
and now you have an internet connection, right?

899
00:50:48,936 --> 00:50:50,376
Nobody knew how to do that.

900
00:50:51,036 --> 00:50:53,536
So I had a company literally teaching people

901
00:50:53,536 --> 00:50:55,296
how to connect their computer to the internet.

902
00:50:55,656 --> 00:50:57,516
Do you know when the internet really took off?

903
00:50:58,356 --> 00:51:01,496
When like Comcast and Verizon, everybody made it simple.

904
00:51:01,616 --> 00:51:03,356
You just plug this thing in and turn it on.

905
00:51:04,036 --> 00:51:05,316
Boom, the internet went.

906
00:51:06,396 --> 00:51:07,616
Mass adoption, right?

907
00:51:08,496 --> 00:51:08,856
Absolutely.

908
00:51:08,856 --> 00:51:10,176
Just plug it in and turn it on.

909
00:51:11,976 --> 00:51:12,416
True.

910
00:51:12,416 --> 00:51:16,236
No configuring it, no like all the things, right?

911
00:51:16,636 --> 00:51:17,296
It just works.

912
00:51:18,436 --> 00:51:19,316
Absolutely, that's true.

913
00:51:19,636 --> 00:51:19,736
Yeah.

914
00:51:20,216 --> 00:51:22,096
There was no thing as Wi-Fi even.

915
00:51:23,016 --> 00:51:24,096
Right, right.

916
00:51:24,836 --> 00:51:27,956
And nowadays people just plug it in and it works.

917
00:51:28,536 --> 00:51:31,116
Maybe you have a little setup, but it's very simple.

918
00:51:31,796 --> 00:51:36,096
All of the technology, you're not configuring your DHCP servers,

919
00:51:36,276 --> 00:51:39,836
you're not configuring your gateway or your subnet or any of that stuff.

920
00:51:39,836 --> 00:51:41,616
That's all abstracted away.

921
00:51:41,616 --> 00:51:46,016
people don't even see that most people don't even know that stuff exists they just use the internet

922
00:51:46,016 --> 00:51:55,876
right we gotta get closer to that with bitcoin it's got to be simple yeah absolutely uh i also

923
00:51:55,876 --> 00:52:02,676
kept thinking that when adrian made you the question about the risk and everything i want

924
00:52:02,676 --> 00:52:10,796
to know what was the what was the risk that you took into account when you pivoted from gold to

925
00:52:10,796 --> 00:52:18,996
bitcoin because probably you have needed to do like a huge analysis on it right yeah so the two

926
00:52:18,996 --> 00:52:26,616
things that kept me away from bitcoin for the longest time um the first one was is that i

927
00:52:26,616 --> 00:52:31,736
thought the government would shut it down i thought you know this is a potentially competing

928
00:52:31,736 --> 00:52:37,236
currency to the u.s dollar the u.s government is going to shut it down i heard about bitcoin in 2011

929
00:52:37,236 --> 00:52:39,496
and I didn't buy any of it because I thought the

930
00:52:39,496 --> 00:52:41,356
government was going to shut it down.

931
00:52:42,436 --> 00:52:43,776
I don't know where Max and Stacey

932
00:52:43,776 --> 00:52:45,556
talking about this. I'm looking at it. It's like a dollar.

933
00:52:45,716 --> 00:52:46,816
I'm like, yeah.

934
00:52:47,916 --> 00:52:48,596
I know.

935
00:52:49,676 --> 00:52:51,656
It's crazy. That's not real. This is not

936
00:52:51,656 --> 00:52:53,436
real. The government's just going to shut it off.

937
00:52:54,116 --> 00:52:55,696
That was the first one. The second one

938
00:52:55,696 --> 00:52:57,556
was I thought there would just be

939
00:52:57,556 --> 00:52:59,036
another Bitcoin that was better.

940
00:52:59,536 --> 00:53:01,836
I hear this still. Even today, I hear this all the time.

941
00:53:02,036 --> 00:53:03,616
These are the things that kept me away from it.

942
00:53:04,756 --> 00:53:05,476
I started

943
00:53:05,476 --> 00:53:11,676
studying Bitcoin at one point because I was confused as to why the government had not shut

944
00:53:11,676 --> 00:53:18,196
it down yet. This is in 2019. And after a couple hundred hours of looking at it and realizing that

945
00:53:18,196 --> 00:53:22,996
it's decentralized to the degree, it's on hundreds of, it's been downloaded hundreds of thousands of

946
00:53:22,996 --> 00:53:28,076
times. It's on computers all around the world. It's on satellites, right? They're not stopping

947
00:53:28,076 --> 00:53:32,516
this thing. That's when I realized they can't shut it down, right? That's the first part.

948
00:53:32,516 --> 00:53:35,476
the second part is when I started

949
00:53:35,476 --> 00:53:37,136
looking at like

950
00:53:37,136 --> 00:53:39,536
well there's just going to be a better one

951
00:53:39,536 --> 00:53:41,456
and when I realized that like A

952
00:53:41,456 --> 00:53:43,596
in order to overcome the current network effects

953
00:53:43,596 --> 00:53:45,816
of Bitcoin it would be like you and me

954
00:53:45,816 --> 00:53:47,396
starting a company that

955
00:53:47,396 --> 00:53:48,556
defeats Amazon

956
00:53:48,556 --> 00:53:51,836
we would have to have the same

957
00:53:51,836 --> 00:53:53,916
website the same billions

958
00:53:53,916 --> 00:53:55,756
of products we'd have to have all their

959
00:53:55,756 --> 00:53:57,716
data centers we'd have to have their warehouses

960
00:53:57,716 --> 00:53:59,056
their trucks their planes

961
00:53:59,056 --> 00:54:01,596
everything all their robots everything

962
00:54:01,596 --> 00:54:03,636
and then we'll have to make it 10 times better

963
00:54:03,636 --> 00:54:05,936
to get everybody to leave Amazon and come to us.

964
00:54:06,836 --> 00:54:07,896
I mean, that's never going to happen.

965
00:54:08,576 --> 00:54:10,196
I think that's the same with Bitcoin now.

966
00:54:11,136 --> 00:54:13,236
But it doesn't fall people from trying.

967
00:54:13,236 --> 00:54:18,096
People have made millions of altcoins, right?

968
00:54:18,356 --> 00:54:20,716
Every single one of them has failed to unseat Bitcoin.

969
00:54:21,036 --> 00:54:22,316
There's a reason for that.

970
00:54:24,156 --> 00:54:26,016
Bitcoin is the only one with no issuer.

971
00:54:26,936 --> 00:54:28,396
It's the only one that's truly neutral.

972
00:54:29,316 --> 00:54:30,716
It's the only one that nobody can stop.

973
00:54:31,596 --> 00:54:33,096
It's the only one that no one can control.

974
00:54:33,856 --> 00:54:39,696
Yeah, and when I think about this, it's like we realize that we're still early.

975
00:54:40,296 --> 00:54:46,136
I mean, there have been a few years here and also myself,

976
00:54:46,136 --> 00:54:49,236
but even now it's too early.

977
00:54:51,396 --> 00:54:56,036
It's that phase of time in the Internet where people have all heard about the Internet,

978
00:54:56,416 --> 00:54:59,436
people have heard about email, they're just not using it yet.

979
00:55:00,736 --> 00:55:01,056
Exactly.

980
00:55:01,596 --> 00:55:08,336
I want to ask you a little bit about the current events.

981
00:55:10,196 --> 00:55:18,156
Actually, last week we saw that I've been following some tweets about the Six Sigma.

982
00:55:18,456 --> 00:55:20,516
We have seen that everything was falling.

983
00:55:20,856 --> 00:55:26,016
Normally, one thing falls, but the other things try to compensate, right?

984
00:55:26,016 --> 00:55:28,716
but in this case we saw that

985
00:55:28,716 --> 00:55:30,076
the monetary system

986
00:55:30,076 --> 00:55:30,796
I mean the

987
00:55:30,796 --> 00:55:34,656
fiat money but also the stocks

988
00:55:34,656 --> 00:55:36,656
the bonds, the commodities

989
00:55:36,656 --> 00:55:38,276
went down so

990
00:55:38,276 --> 00:55:40,316
I want to know your opinion

991
00:55:40,316 --> 00:55:42,576
what's going on

992
00:55:42,576 --> 00:55:46,756
I think this

993
00:55:46,756 --> 00:55:48,956
might be part of what

994
00:55:48,956 --> 00:55:50,596
Ray Dalio is talking about

995
00:55:50,596 --> 00:55:52,916
and it's the very early days

996
00:55:52,916 --> 00:55:54,236
of it I think where

997
00:55:54,236 --> 00:56:00,436
Ray Dalio is basically saying that the global monetary order is changing.

998
00:56:01,436 --> 00:56:03,376
And this happens from time to time.

999
00:56:04,716 --> 00:56:10,196
There is a world reserve dominant currency usually for a certain period of time.

1000
00:56:10,876 --> 00:56:12,276
And then it's replaced.

1001
00:56:12,976 --> 00:56:15,776
This goes all the way back to the Roman Empire.

1002
00:56:16,396 --> 00:56:21,396
It was the Roman Empire and then it was the Byzantine Empire, so on and so forth.

1003
00:56:24,236 --> 00:56:29,776
eventually it was England

1004
00:56:29,776 --> 00:56:31,736
and it was the British pound

1005
00:56:31,736 --> 00:56:34,096
immediately prior to the United States

1006
00:56:34,096 --> 00:56:36,156
taking over as the world reserve currency

1007
00:56:36,156 --> 00:56:36,556
so

1008
00:56:36,556 --> 00:56:39,556
essentially it was 1944

1009
00:56:39,556 --> 00:56:41,116
at the Bretton Woods

1010
00:56:41,116 --> 00:56:43,016
this was right after World War II

1011
00:56:43,016 --> 00:56:44,976
World War II was wrapping up

1012
00:56:44,976 --> 00:56:48,436
and in 1944 all the world leaders got together

1013
00:56:48,436 --> 00:56:50,476
the United States at the time

1014
00:56:50,476 --> 00:56:52,116
had more gold than anyone

1015
00:56:52,116 --> 00:56:55,676
and everyone agreed we're going to use the dollar

1016
00:56:55,676 --> 00:56:58,676
as the trade currency and the reserve currency

1017
00:56:58,676 --> 00:57:03,316
but you have to agree that the dollar is backed up by gold

1018
00:57:03,316 --> 00:57:04,716
and that was the agreement.

1019
00:57:04,876 --> 00:57:07,736
You can turn the dollars in, we'll give you the gold.

1020
00:57:09,196 --> 00:57:12,836
And this held for a very long time

1021
00:57:12,836 --> 00:57:15,336
right up until the late 60s

1022
00:57:15,336 --> 00:57:19,016
but what happened was

1023
00:57:19,016 --> 00:57:20,856
that the United States was printing money

1024
00:57:20,856 --> 00:57:23,296
more money than was backed up by the gold.

1025
00:57:23,396 --> 00:57:26,756
And eventually the countries of the world started to figure out,

1026
00:57:26,876 --> 00:57:29,296
hey, you guys keep printing all these dollars.

1027
00:57:30,636 --> 00:57:31,876
Here's your dollars back.

1028
00:57:31,956 --> 00:57:33,836
We want the gold, right?

1029
00:57:34,856 --> 00:57:36,756
This led to the London gold pool.

1030
00:57:37,356 --> 00:57:41,136
And eventually it was essentially a run on the U.S. gold reserves.

1031
00:57:41,636 --> 00:57:47,056
So there were all these redemptions occurring.

1032
00:57:47,056 --> 00:57:51,856
the United States at one point was airlifting gold

1033
00:57:51,856 --> 00:57:54,976
to London to satisfy the demand

1034
00:57:54,976 --> 00:57:58,336
and then later as this continued with countries

1035
00:57:58,336 --> 00:58:00,336
asking for redemption, asking for redemption

1036
00:58:00,336 --> 00:58:05,396
it led to Nixon closing the gold window in 1971

1037
00:58:05,396 --> 00:58:09,216
and so if you think about that

1038
00:58:09,216 --> 00:58:11,216
that's 30 years, 50 years

1039
00:58:11,216 --> 00:58:15,196
the average lifespan of a world reserve currency is about 50 years

1040
00:58:15,196 --> 00:58:17,936
or 55 years now.

1041
00:58:18,416 --> 00:58:19,636
It's right about that time.

1042
00:58:21,316 --> 00:58:24,236
So it's a fiat currency

1043
00:58:24,236 --> 00:58:27,356
and fiat currencies have a lifespan, usually.

1044
00:58:27,596 --> 00:58:28,976
Like if they're managed well,

1045
00:58:29,156 --> 00:58:30,536
like the US dollar was managed well

1046
00:58:30,536 --> 00:58:32,096
for a really long time, I would argue.

1047
00:58:32,896 --> 00:58:35,336
But maybe not so much anymore.

1048
00:58:35,756 --> 00:58:37,216
You know, it took the United States of America

1049
00:58:37,216 --> 00:58:39,216
200 years to print the first trillion.

1050
00:58:40,036 --> 00:58:41,916
And now it's printing a trillion dollars

1051
00:58:41,916 --> 00:58:43,676
every 70 to 100 days.

1052
00:58:43,676 --> 00:58:45,736
This is how fast they're going right now.

1053
00:58:46,076 --> 00:58:46,616
That's crazy.

1054
00:58:47,496 --> 00:58:49,416
It is, right?

1055
00:58:49,676 --> 00:59:00,656
So, Ray Dalio basically says that this is, you know, there's one of these cycles where you have a major monetary reset of the global order.

1056
00:59:01,456 --> 00:59:03,236
And I think that's what's happening.

1057
00:59:03,236 --> 00:59:14,236
The countries of the world and the people of the world are starting to recognize that the United States dollar is caught in a debt trap.

1058
00:59:14,716 --> 00:59:20,676
It is mathematically impossible at this point to stop the continued debasement of the dollar.

1059
00:59:21,376 --> 00:59:23,156
Now, that doesn't mean the dollar is going to collapse.

1060
00:59:23,276 --> 00:59:24,556
It doesn't mean we're going to stop using the dollar.

1061
00:59:24,556 --> 00:59:30,856
What it means is they're going to keep printing and the printing will probably accelerate over time.

1062
00:59:30,856 --> 00:59:34,976
which means the inflation will continue to increase

1063
00:59:34,976 --> 00:59:37,456
and probably accelerate over time.

1064
00:59:37,836 --> 00:59:42,836
And eventually it starts to lead to these massive gyrations in the price.

1065
00:59:45,136 --> 00:59:47,656
Can I share something on a screen for a second?

1066
00:59:47,756 --> 00:59:48,256
Yeah, absolutely.

1067
00:59:48,776 --> 00:59:49,696
That will be helpful.

1068
00:59:51,176 --> 00:59:53,096
Let's see if I have this chart handy.

1069
00:59:53,576 --> 00:59:58,196
All right, so what you're looking at here is the price of gold in marks.

1070
00:59:59,416 --> 00:59:59,776
Okay.

1071
00:59:59,776 --> 01:00:01,856
Do you know what this is?

1072
01:00:03,036 --> 01:00:03,816
I saw that.

1073
01:00:04,516 --> 01:00:06,496
Yeah, if you can explain it from myself.

1074
01:00:06,616 --> 01:00:07,336
Yeah, I saw that.

1075
01:00:07,536 --> 01:00:09,256
Larry reposted it a few days ago.

1076
01:00:09,436 --> 01:00:10,636
But if you can give a context.

1077
01:00:11,676 --> 01:00:16,976
You're looking at a chart of the price of gold measured in Weimar marks.

1078
01:00:18,696 --> 01:00:22,756
And people who study monetary history are familiar with the Weimar hyperinflation.

1079
01:00:23,296 --> 01:00:25,996
This is where they had basically runaway hyperinflation.

1080
01:00:25,996 --> 01:00:40,716
And as you can see in this chart, the volatility of the chart in the gold price continues to increase in amplitude massively over time.

1081
01:00:41,936 --> 01:00:46,196
And the wild more hyperinflation, you know, this wasn't an instant phenomenon.

1082
01:00:46,196 --> 01:00:55,196
This took, well, in a nine-year period of time, the first seven years was accelerating inflation.

1083
01:00:55,996 --> 01:00:57,276
It wasn't hyperinflation.

1084
01:00:57,396 --> 01:01:04,636
It was high inflation, 10%, 12%, 15%, 18%, right, for like seven years.

1085
01:01:04,776 --> 01:01:07,736
And in the last two years, it went straight up.

1086
01:01:09,616 --> 01:01:13,356
And there was a lot of volatility as this was occurring.

1087
01:01:13,356 --> 01:01:21,396
And when I saw the price of gold, here, there's another chart that I would like to share.

1088
01:01:22,256 --> 01:01:24,996
You remember when gold was smoking, silver was smoking,

1089
01:01:24,996 --> 01:01:27,916
Silver went all the way up to like $120-ish in that neighborhood.

1090
01:01:29,136 --> 01:01:31,416
And then this last weekend it crashed.

1091
01:01:32,356 --> 01:01:37,036
It wiped out $10 trillion of market value in three days.

1092
01:01:38,516 --> 01:01:39,176
That's crazy.

1093
01:01:40,656 --> 01:01:48,076
And for perspective, that's like five times the entire global market value of all of the Bitcoin.

1094
01:01:49,496 --> 01:01:50,176
Gone.

1095
01:01:50,876 --> 01:01:52,556
Five times that amount.

1096
01:01:52,756 --> 01:01:54,076
Gone in three days.

1097
01:01:54,076 --> 01:01:55,816
so what does this look like

1098
01:01:55,816 --> 01:01:57,976
is this reminding you of anything

1099
01:01:57,976 --> 01:02:00,676
absolutely

1100
01:02:00,676 --> 01:02:02,116
yeah

1101
01:02:02,116 --> 01:02:04,536
so I'm not sitting here saying

1102
01:02:04,536 --> 01:02:06,036
that the US dollar is going to

1103
01:02:06,036 --> 01:02:08,476
into a hyperinflation I don't really know

1104
01:02:08,476 --> 01:02:10,036
what I know is

1105
01:02:10,036 --> 01:02:11,756
that

1106
01:02:11,756 --> 01:02:14,376
these things tend to recur

1107
01:02:14,376 --> 01:02:16,556
over history we're definitely in a

1108
01:02:16,556 --> 01:02:18,596
period of massive change

1109
01:02:18,596 --> 01:02:20,556
the world is looking at

1110
01:02:20,556 --> 01:02:22,056
the United States dollar going

1111
01:02:22,056 --> 01:02:35,294
we may not be able to rely upon this for the next 10 20 years So we better start looking at alternatives now China just came out and asked the world to start using the yuan as the world reserve currency I don know if people are going to do that

1112
01:02:35,394 --> 01:02:38,534
but this makes me very bullish on Bitcoin

1113
01:02:38,534 --> 01:02:43,454
because I think the US has some runway here with stablecoins.

1114
01:02:43,654 --> 01:02:45,294
They're starting to use stablecoins

1115
01:02:45,294 --> 01:02:47,514
and it's going to extend the life of the dollar

1116
01:02:47,514 --> 01:02:50,814
to some degree.

1117
01:02:50,814 --> 01:02:55,894
but eventually I think what will happen

1118
01:02:55,894 --> 01:02:59,414
and I don't know if this is 10 years out, 20 years out, whatever it is

1119
01:02:59,414 --> 01:03:02,294
but I think countries are going to start to realize

1120
01:03:02,294 --> 01:03:06,274
that there's only one currency globally that's completely neutral

1121
01:03:06,274 --> 01:03:08,554
has no issuer

1122
01:03:08,554 --> 01:03:13,474
no one can stop you from using it, nobody can prevent you from sending it across borders

1123
01:03:13,474 --> 01:03:16,034
they can't take it from you

1124
01:03:16,034 --> 01:03:19,334
and it's absolutely limited

1125
01:03:19,334 --> 01:03:23,054
and I think when central banks start to figure this out

1126
01:03:23,054 --> 01:03:26,754
this is going to sound crazy to some people

1127
01:03:26,754 --> 01:03:29,414
but I think they're going to start printing money

1128
01:03:29,414 --> 01:03:30,274
and buying Bitcoin

1129
01:03:30,274 --> 01:03:33,394
also I was reminding

1130
01:03:33,394 --> 01:03:34,954
I just remind about

1131
01:03:34,954 --> 01:03:37,674
I think there's a lot

1132
01:03:37,674 --> 01:03:38,874
and correct me if I'm mistaken

1133
01:03:38,874 --> 01:03:41,594
that about the government

1134
01:03:41,594 --> 01:03:43,414
was trying to

1135
01:03:43,414 --> 01:03:45,674
acquire

1136
01:03:45,674 --> 01:03:47,694
like XRP

1137
01:03:47,694 --> 01:03:51,134
I don't know, some shitcoins or taxes about it.

1138
01:03:51,334 --> 01:03:53,994
But the idea of getting that is to eventually,

1139
01:03:54,334 --> 01:03:56,814
with that capital gains, to pivot it,

1140
01:03:56,914 --> 01:04:00,094
sell it and buy more Bitcoin to have it in the treasury of the US.

1141
01:04:01,414 --> 01:04:02,074
Yeah, possibly.

1142
01:04:02,254 --> 01:04:05,294
Well, when President Trump signed the executive order

1143
01:04:05,294 --> 01:04:07,214
creating the Bitcoin Strategic Reserve,

1144
01:04:07,894 --> 01:04:09,534
they created rules around that.

1145
01:04:09,574 --> 01:04:12,274
And they basically said that the Bitcoin that's there,

1146
01:04:12,674 --> 01:04:13,734
you can't sell it.

1147
01:04:13,734 --> 01:04:20,394
if you acquire more bitcoin in a budget neutral way that's the language they used if it's a budget

1148
01:04:20,394 --> 01:04:26,234
neutral way you can acquire more bitcoin that's fine all of these other cryptocurrencies if we

1149
01:04:26,234 --> 01:04:33,754
have them sell them so that to me is a very clear signal like that tells you something about the way

1150
01:04:33,754 --> 01:04:39,334
they view this stuff and yeah no the other thing that i'm thinking is that now they say that probably

1151
01:04:39,334 --> 01:04:41,194
China says that

1152
01:04:41,194 --> 01:04:44,014
invite

1153
01:04:44,014 --> 01:04:45,894
nations to start using their

1154
01:04:45,894 --> 01:04:46,314
currency

1155
01:04:46,314 --> 01:04:48,874
as a reserve.

1156
01:04:49,894 --> 01:04:50,494
I want to ask you

1157
01:04:50,494 --> 01:04:53,974
because now I have

1158
01:04:53,974 --> 01:04:56,134
seen some strategies. For example, we started

1159
01:04:56,134 --> 01:04:58,194
Salvador buying Bitcoin.

1160
01:04:58,734 --> 01:05:00,034
Now the government is buying

1161
01:05:00,034 --> 01:05:02,134
Bitcoin every single day, but also is buying

1162
01:05:02,134 --> 01:05:04,134
gold when this

1163
01:05:04,134 --> 01:05:06,134
thing happens, when gold

1164
01:05:06,134 --> 01:05:06,694
is in sales.

1165
01:05:06,694 --> 01:05:07,854
so

1166
01:05:07,854 --> 01:05:11,214
my question

1167
01:05:11,214 --> 01:05:12,274
will be like

1168
01:05:12,274 --> 01:05:13,434
thinking more

1169
01:05:13,434 --> 01:05:14,674
in the global south

1170
01:05:14,674 --> 01:05:15,494
where there's

1171
01:05:15,494 --> 01:05:16,514
hyperinflation

1172
01:05:16,514 --> 01:05:19,374
what would be

1173
01:05:19,374 --> 01:05:20,454
the exit way

1174
01:05:20,454 --> 01:05:21,414
or the way

1175
01:05:21,414 --> 01:05:21,954
to fix

1176
01:05:21,954 --> 01:05:23,274
those hyperinflation

1177
01:05:23,274 --> 01:05:24,334
like is actually

1178
01:05:24,334 --> 01:05:25,334
acquiring

1179
01:05:25,334 --> 01:05:26,454
bitcoin

1180
01:05:26,454 --> 01:05:27,194
their treasuries

1181
01:05:27,194 --> 01:05:28,334
or gold

1182
01:05:28,334 --> 01:05:29,754
or both

1183
01:05:29,754 --> 01:05:31,574
perhaps both

1184
01:05:31,574 --> 01:05:31,894
yeah

1185
01:05:31,894 --> 01:05:33,094
I think in the interim

1186
01:05:33,094 --> 01:05:36,074
they'll acquire gold

1187
01:05:36,074 --> 01:05:38,374
more and then

1188
01:05:38,374 --> 01:05:42,114
eventually it starts to become

1189
01:05:42,114 --> 01:05:43,114
obvious if there's

1190
01:05:43,114 --> 01:05:45,854
peace globally

1191
01:05:45,854 --> 01:05:47,854
gold can work

1192
01:05:47,854 --> 01:05:49,894
okay because

1193
01:05:49,894 --> 01:05:52,174
if you need to move the gold from one country

1194
01:05:52,174 --> 01:05:53,834
or another no problem you just move it

1195
01:05:53,834 --> 01:05:56,234
right if there's not

1196
01:05:56,234 --> 01:05:58,274
peace this becomes a problem

1197
01:05:58,274 --> 01:06:00,194
this is actually the reason I

1198
01:06:00,194 --> 01:06:01,474
switched from gold to bitcoin

1199
01:06:01,474 --> 01:06:04,194
so I'll back up and explain

1200
01:06:04,194 --> 01:06:05,894
in 2020

1201
01:06:05,894 --> 01:06:07,614
the beginning of COVID

1202
01:06:07,614 --> 01:06:09,974
this was around the early part of the

1203
01:06:09,974 --> 01:06:11,554
the year 2020

1204
01:06:11,554 --> 01:06:13,814
if you recall

1205
01:06:13,814 --> 01:06:15,554
we were vaulting our gold in Switzerland

1206
01:06:15,554 --> 01:06:17,014
these private vaults in Switzerland

1207
01:06:17,014 --> 01:06:19,894
the Swiss government grounded

1208
01:06:19,894 --> 01:06:21,694
the airplanes they said no one can take off

1209
01:06:21,694 --> 01:06:22,434
no one can land

1210
01:06:22,434 --> 01:06:25,834
so what this meant was

1211
01:06:25,834 --> 01:06:27,934
I woke up in the middle of the night and I realized

1212
01:06:27,934 --> 01:06:30,214
if one of my clients called me

1213
01:06:30,214 --> 01:06:31,994
one of my investors called me and they said

1214
01:06:31,994 --> 01:06:34,034
Alex I want you to deliver 20 million dollars

1215
01:06:34,034 --> 01:06:35,834
in gold bars to this country over here

1216
01:06:35,834 --> 01:06:37,894
in this vault over here, I could not do that

1217
01:06:37,894 --> 01:06:40,214
because the planes couldn't take off.

1218
01:06:41,434 --> 01:06:43,414
So this is what you call a failure to deliver

1219
01:06:43,414 --> 01:06:45,074
in the gold industry.

1220
01:06:45,194 --> 01:06:46,174
This is bad. It's not good.

1221
01:06:46,214 --> 01:06:47,274
It's not good for your reputation.

1222
01:06:47,654 --> 01:06:49,774
You could say it's because of COVID, but whatever.

1223
01:06:50,094 --> 01:06:51,714
You still had a failure to deliver.

1224
01:06:51,874 --> 01:06:53,814
In gold, to have final settlement,

1225
01:06:53,974 --> 01:06:56,974
you have to move the gold from one possession to another.

1226
01:06:58,094 --> 01:06:58,354
Okay?

1227
01:06:58,814 --> 01:07:00,034
This requires people.

1228
01:07:00,734 --> 01:07:02,434
The guys at the vault, the guys on the trucks,

1229
01:07:02,554 --> 01:07:04,314
security trucks, the ground crew, air crew,

1230
01:07:04,314 --> 01:07:06,474
all these people. The same thing on the other side.

1231
01:07:07,014 --> 01:07:08,534
And I realized, oh,

1232
01:07:08,754 --> 01:07:10,454
any one of these people can mess this up.

1233
01:07:10,714 --> 01:07:12,474
And then I thought about Bitcoin because I was studying

1234
01:07:12,474 --> 01:07:14,434
Bitcoin at the time and I'm like, okay,

1235
01:07:14,494 --> 01:07:16,494
wait a minute. With Bitcoin, I can send

1236
01:07:16,494 --> 01:07:18,554
any amount of value to the other side

1237
01:07:18,554 --> 01:07:20,514
of the planet basically

1238
01:07:20,514 --> 01:07:22,374
instantly because it's going across the

1239
01:07:22,374 --> 01:07:23,554
internet at the speed of light

1240
01:07:23,554 --> 01:07:25,734
at almost no cost.

1241
01:07:26,254 --> 01:07:28,554
No one can stop me. I need no one's permission.

1242
01:07:30,314 --> 01:07:32,414
And I was like, I knew with

1243
01:07:32,414 --> 01:07:39,394
perfect clarity that Bitcoin was better money for moving massive amounts of value, right?

1244
01:07:40,334 --> 01:07:48,534
Let's go back to gold for a minute. Central banks trust gold because if you look at interviews with

1245
01:07:48,534 --> 01:07:53,254
central bankers after they get out of the central bank, they're no longer running the central bank,

1246
01:07:53,394 --> 01:07:58,974
they will tell you gold is this reset button. Gold is like endangered break glass, hit the button,

1247
01:07:58,974 --> 01:08:02,634
right that's how you reset the currency is you must have a bunch of gold

1248
01:08:02,634 --> 01:08:06,834
so I think what you're going to see in the interim is

1249
01:08:06,834 --> 01:08:10,994
they're going to keep buying gold to create basically a foundation

1250
01:08:10,994 --> 01:08:14,914
if they have to reset their money they'll have the gold

1251
01:08:14,914 --> 01:08:19,194
to do that but this works in peacetime it doesn't work in wartime

1252
01:08:19,194 --> 01:08:23,094
you remember World War II when all those ships were going across the

1253
01:08:23,094 --> 01:08:25,694
Atlantic what were they doing they were sinking them

1254
01:08:25,694 --> 01:08:27,554
yeah of course

1255
01:08:27,554 --> 01:08:29,594
to move gold you have to put it on a ship

1256
01:08:29,594 --> 01:08:30,794
or you have to put it on a plane

1257
01:08:30,794 --> 01:08:33,554
ships can get sunk planes can get shot down

1258
01:08:33,554 --> 01:08:35,174
so if there's war

1259
01:08:35,174 --> 01:08:36,414
that doesn't work

1260
01:08:36,414 --> 01:08:39,834
and so I think what will happen

1261
01:08:39,834 --> 01:08:40,994
is that eventually

1262
01:08:40,994 --> 01:08:43,974
central banks will start to figure out

1263
01:08:43,974 --> 01:08:45,774
bitcoin I can move any

1264
01:08:45,774 --> 01:08:46,554
amount of value

1265
01:08:46,554 --> 01:08:49,314
it's a neutral asset with no issuer

1266
01:08:49,314 --> 01:08:50,914
no one controls the network

1267
01:08:50,914 --> 01:08:52,414
no one can control the network

1268
01:08:52,414 --> 01:08:53,834
no one can stop me

1269
01:08:53,834 --> 01:08:55,094
it's instant settlement

1270
01:08:55,094 --> 01:08:58,574
I don't have to worry about my plane getting shot down full of gold

1271
01:08:58,574 --> 01:09:02,054
or my ship getting sunk.

1272
01:09:03,014 --> 01:09:07,774
It's just logical to me that eventually they'll start to figure this out.

1273
01:09:09,554 --> 01:09:10,034
Yeah.

1274
01:09:10,774 --> 01:09:13,274
And I'm just thinking, also I have a question because

1275
01:09:13,274 --> 01:09:18,714
you said that you pivot to Bitcoin, but also you have your clients

1276
01:09:18,714 --> 01:09:21,794
and I'm not asking specifically about your clients, but

1277
01:09:21,794 --> 01:09:25,034
I mean, who they are or whatever.

1278
01:09:25,094 --> 01:09:28,174
but the sense that they also need to understand Bitcoin

1279
01:09:28,174 --> 01:09:33,694
in order to accept that you pivot to this, right?

1280
01:09:34,854 --> 01:09:42,314
And so I'm just thinking like how right now that business works

1281
01:09:42,314 --> 01:09:46,394
because, for example, let's say Peter Schiff.

1282
01:09:46,754 --> 01:09:48,674
Well, I have my opinion.

1283
01:09:49,114 --> 01:09:52,994
He is, you know, like pure gold, but I think he has some Bitcoin

1284
01:09:52,994 --> 01:09:55,654
that somehow is a facade.

1285
01:09:56,094 --> 01:09:57,134
But he defends gold.

1286
01:09:58,214 --> 01:10:00,034
He dies in that hill, right?

1287
01:10:00,394 --> 01:10:01,954
And I think he's not the only one.

1288
01:10:02,654 --> 01:10:06,914
So, yeah, like in general, how does that work?

1289
01:10:07,614 --> 01:10:10,014
In order to say, hey, I cannot provide you,

1290
01:10:10,454 --> 01:10:13,194
as the test is just said, like if there's war,

1291
01:10:13,874 --> 01:10:16,434
probably I cannot deliver this in the case of COVID,

1292
01:10:16,434 --> 01:10:18,294
but there is this superior money.

1293
01:10:18,294 --> 01:10:22,734
so in order to understand that

1294
01:10:22,734 --> 01:10:24,854
I don't know if you follow me

1295
01:10:24,854 --> 01:10:30,394
yeah well you know funds wrap up all the time

1296
01:10:30,394 --> 01:10:33,934
and you don't need to actually explain why you're wrapping it up

1297
01:10:33,934 --> 01:10:35,274
you can just choose to wrap it up

1298
01:10:35,274 --> 01:10:38,174
you liquidate the assets or you deliver in kind

1299
01:10:38,174 --> 01:10:41,474
and you close the fund which is basically what we did

1300
01:10:41,474 --> 01:10:45,894
if for example a particular investor were to come to me

1301
01:10:45,894 --> 01:10:47,374
and say hey Alex what are you doing

1302
01:10:47,374 --> 01:11:03,254
Like, what are you interested in? I would explain to them. I think Bitcoin is a better asset. And these are the reasons why. Now, will every investor agree with me? No. I mean, there's this concept called sunk cost bias.

1303
01:11:03,254 --> 01:11:13,294
sunk cost bias what this means is if i have invested 30 years of my life or 40 years of my

1304
01:11:13,294 --> 01:11:19,574
life in this particular industry or this particular asset and i have all this money invested in it and

1305
01:11:19,574 --> 01:11:25,434
i have all this time invested in it and i now i have ego and professional my professional image

1306
01:11:25,434 --> 01:11:33,014
is invested in this thing right i can't easily give this up my ego prevents me from doing it

1307
01:11:33,014 --> 01:11:35,414
My bias prevents me from doing it.

1308
01:11:36,434 --> 01:11:50,934
But if you were to remove all the bias and simply say, look, from the perspective of what is just a better asset, what's a better form of money in every measurable way, aside from how long, right?

1309
01:11:51,014 --> 01:11:52,334
Gold's been around a long time.

1310
01:11:52,554 --> 01:11:53,354
I'll give it that.

1311
01:11:53,714 --> 01:11:56,634
But aside from that, Bitcoin performs better.

1312
01:11:57,334 --> 01:11:58,834
It's easier to move.

1313
01:11:59,034 --> 01:12:02,174
It can't be confiscated from you if you secure it properly.

1314
01:12:02,734 --> 01:12:03,814
You don't require permission.

1315
01:12:04,414 --> 01:12:05,194
It's instant.

1316
01:12:06,994 --> 01:12:11,554
And like the gold people like to say, okay, well, what if the internet goes away?

1317
01:12:12,354 --> 01:12:13,754
Or what if the power goes away?

1318
01:12:14,374 --> 01:12:18,054
And my answer to that is, well, it depends on what you're talking about.

1319
01:12:18,134 --> 01:12:19,134
Is it a couple of days?

1320
01:12:19,214 --> 01:12:19,874
Is it a week?

1321
01:12:20,414 --> 01:12:22,754
Or is it like a year?

1322
01:12:23,634 --> 01:12:23,894
Right?

1323
01:12:24,074 --> 01:12:26,114
If it's a couple of days, so what?

1324
01:12:27,054 --> 01:12:31,594
If you're really worried about it, get a generator and a Starlink, just like everybody else.

1325
01:12:32,174 --> 01:12:33,474
right

1326
01:12:33,474 --> 01:12:36,954
if it's a year and you have no power

1327
01:12:36,954 --> 01:12:38,854
you get bigger problems

1328
01:12:38,854 --> 01:12:40,714
than whether you have gold or silver or bitcoin

1329
01:12:40,714 --> 01:12:43,614
you better

1330
01:12:43,614 --> 01:12:46,774
there's other things you need to worry about

1331
01:12:46,774 --> 01:12:48,374
like how do you get fresh water

1332
01:12:48,374 --> 01:12:49,874
how do you grow food

1333
01:12:49,874 --> 01:12:52,494
how do you not freeze during the winter

1334
01:12:52,494 --> 01:12:54,614
like you need to figure that stuff out

1335
01:12:54,614 --> 01:12:55,914
and

1336
01:12:55,914 --> 01:12:57,594
it's going to get very

1337
01:12:57,594 --> 01:13:00,254
humans get very weird very quickly

1338
01:13:00,254 --> 01:13:02,254
when you turn the lights off for a long time.

1339
01:13:03,154 --> 01:13:03,934
So I would say,

1340
01:13:04,094 --> 01:13:06,354
don't worry about whether you have Bitcoin or gold.

1341
01:13:06,674 --> 01:13:08,254
You better be able to protect yourself

1342
01:13:08,254 --> 01:13:11,274
or you better have access to water and food.

1343
01:13:13,614 --> 01:13:15,094
And it's like this whole argument is like,

1344
01:13:15,134 --> 01:13:16,594
well, we're just going to be cavemen again.

1345
01:13:16,634 --> 01:13:17,334
I don't think so.

1346
01:13:17,814 --> 01:13:19,374
Humans don't go backwards in technology,

1347
01:13:19,474 --> 01:13:21,174
not unless you completely reset, right?

1348
01:13:21,234 --> 01:13:22,474
There have been situations where

1349
01:13:22,474 --> 01:13:23,974
we've studied civilizations

1350
01:13:23,974 --> 01:13:25,334
where their technology was lost.

1351
01:13:25,414 --> 01:13:27,014
They were completely wiped off the map, right?

1352
01:13:27,714 --> 01:13:29,194
Again, this is one of those

1353
01:13:29,194 --> 01:13:31,214
tiny little probability scenarios?

1354
01:13:31,334 --> 01:13:33,334
Am I going to model my life based upon

1355
01:13:33,334 --> 01:13:34,994
this tiny little probability?

1356
01:13:36,034 --> 01:13:37,134
Or is it

1357
01:13:37,134 --> 01:13:38,974
more realistic that humanity

1358
01:13:38,974 --> 01:13:41,034
just continues and our technology

1359
01:13:41,034 --> 01:13:42,774
continues and our

1360
01:13:42,774 --> 01:13:44,594
you understand what I'm saying?

1361
01:13:44,734 --> 01:13:46,894
I was just looking at this thing with Elon Musk

1362
01:13:46,894 --> 01:13:47,614
the other day.

1363
01:13:48,734 --> 01:13:50,594
SpaceX just acquired XAI.

1364
01:13:51,434 --> 01:13:52,514
What does that mean?

1365
01:13:52,934 --> 01:13:54,974
That means with Starship, people don't follow

1366
01:13:54,974 --> 01:13:56,734
this stuff. Starship is his new

1367
01:13:56,734 --> 01:13:58,874
spacecraft. He can launch

1368
01:13:58,874 --> 01:14:01,694
150 to 200 tons of payload into orbit.

1369
01:14:02,034 --> 01:14:04,034
He's looking at doing it a thousand times a year.

1370
01:14:04,834 --> 01:14:08,894
He's going to build a massive AI grid in space.

1371
01:14:10,474 --> 01:14:13,894
No atmosphere, no terrestrial limits.

1372
01:14:15,894 --> 01:14:18,954
Constant, continuous solar generation and compute.

1373
01:14:20,174 --> 01:14:22,434
What do big AI clusters do

1374
01:14:22,434 --> 01:14:26,214
when they're not using the compute for computing AI?

1375
01:14:26,214 --> 01:14:29,114
a lot of them are mining bitcoin

1376
01:14:29,114 --> 01:14:30,674
why wouldn't you

1377
01:14:30,674 --> 01:14:35,174
I don't know if that's what's going to happen

1378
01:14:35,174 --> 01:14:35,654
but

1379
01:14:35,654 --> 01:14:38,574
yeah

1380
01:14:38,574 --> 01:14:41,074
just some things

1381
01:14:41,074 --> 01:14:41,794
to think about

1382
01:14:41,794 --> 01:14:43,434
yeah

1383
01:14:43,434 --> 01:14:46,734
Alex we'll start

1384
01:14:46,734 --> 01:14:49,014
wrap it up because I think we can

1385
01:14:49,014 --> 01:14:50,354
go forever and it's so fascinating

1386
01:14:50,354 --> 01:14:51,534
what you're sharing

1387
01:14:51,534 --> 01:14:54,854
I just have a couple more questions for you

1388
01:14:54,854 --> 01:14:56,494
but one is like

1389
01:14:56,494 --> 01:14:59,414
well talking about

1390
01:14:59,414 --> 01:15:01,394
because I asked you the current scenario

1391
01:15:01,394 --> 01:15:03,574
so what do you think

1392
01:15:03,574 --> 01:15:05,654
that is going to happen in the short term

1393
01:15:05,654 --> 01:15:07,394
now that let's say

1394
01:15:07,394 --> 01:15:09,374
now that we are recording February 4th

1395
01:15:09,374 --> 01:15:11,114
so in the next weeks

1396
01:15:11,114 --> 01:15:12,954
you mean in the price

1397
01:15:12,954 --> 01:15:14,474
with the price of Bitcoin?

1398
01:15:14,474 --> 01:15:16,754
yeah in general

1399
01:15:16,754 --> 01:15:18,814
I mean in macro perspective

1400
01:15:18,814 --> 01:15:21,334
because we have seen that everything

1401
01:15:21,334 --> 01:15:22,594
is going falling apart

1402
01:15:22,594 --> 01:15:24,674
and also Bitcoin

1403
01:15:24,674 --> 01:15:32,194
Yeah, I'm not so sure on the short term to medium term.

1404
01:15:32,434 --> 01:15:35,274
I'm not very good at making these kind of outlooks.

1405
01:15:35,374 --> 01:15:37,734
I just, from a very zoomed out perspective,

1406
01:15:38,234 --> 01:15:41,234
I do believe the global monetary system is changing

1407
01:15:41,234 --> 01:15:44,274
and I don't think it's going to go backwards in terms of changing.

1408
01:15:44,874 --> 01:15:47,234
I think they may extend the life of the dollar,

1409
01:15:48,114 --> 01:15:51,094
but ultimately it's still going in the same direction

1410
01:15:51,094 --> 01:15:52,954
and I think it will accelerate over time.

1411
01:15:52,954 --> 01:16:02,234
So if that is the case, I mean, at the end of the day, there's a trillion, not a trillion, sorry.

1412
01:16:02,474 --> 01:16:07,934
There's like 900 trillion to a quadrillion US dollars worth of assets globally.

1413
01:16:08,394 --> 01:16:12,494
We're talking stocks, bonds, real estate, art, all the things, right?

1414
01:16:12,574 --> 01:16:13,374
Gold, silver, everything.

1415
01:16:15,074 --> 01:16:17,714
You get to ask the question, why are people buying these things?

1416
01:16:17,714 --> 01:16:19,234
and

1417
01:16:19,234 --> 01:16:22,094
I believe

1418
01:16:22,094 --> 01:16:23,814
the reason people buy these things

1419
01:16:23,814 --> 01:16:25,954
is so that they're going to increase their

1420
01:16:25,954 --> 01:16:27,734
purchasing power, their capital

1421
01:16:27,734 --> 01:16:29,154
over time

1422
01:16:29,154 --> 01:16:31,474
instead of keeping in the currency

1423
01:16:31,474 --> 01:16:33,594
like if you could just keep your

1424
01:16:33,594 --> 01:16:35,814
dollars or

1425
01:16:35,814 --> 01:16:37,654
in whatever country you're in

1426
01:16:37,654 --> 01:16:39,554
that currency, if that currency

1427
01:16:39,554 --> 01:16:41,814
increased in purchasing power by 10%

1428
01:16:41,814 --> 01:16:42,734
every single year

1429
01:16:42,734 --> 01:16:45,454
would you buy all these other assets?

1430
01:16:45,454 --> 01:16:46,434
A lot of people wouldn't.

1431
01:16:46,894 --> 01:16:47,874
They would just keep the currency.

1432
01:16:48,434 --> 01:16:49,814
It keeps going up in purchasing power.

1433
01:16:50,234 --> 01:16:51,614
It goes down in purchasing power.

1434
01:16:51,714 --> 01:16:53,134
That's why people buy all this other stuff.

1435
01:16:53,494 --> 01:16:55,734
So my argument is that's a manipulation.

1436
01:16:58,134 --> 01:17:01,934
Because the natural state of a free market is deflation.

1437
01:17:03,074 --> 01:17:04,934
If you listen to Jeff Booth, what does that mean?

1438
01:17:04,994 --> 01:17:07,814
As technology improves, as humans get better and more productive

1439
01:17:07,814 --> 01:17:11,614
and more efficient at doing things, the price of everything should fall.

1440
01:17:11,614 --> 01:17:14,834
if the amount of currency remained steady

1441
01:17:14,834 --> 01:17:16,574
was the same amount

1442
01:17:16,574 --> 01:17:18,094
like you're not adding currency

1443
01:17:18,094 --> 01:17:20,574
the prices of everything should fall over time

1444
01:17:20,574 --> 01:17:21,714
I'm not talking about

1445
01:17:21,714 --> 01:17:24,154
deflation of the money supply

1446
01:17:24,154 --> 01:17:26,934
and deflation of credit which would cause a deflationary

1447
01:17:26,934 --> 01:17:28,294
collapse I'm not talking about that

1448
01:17:28,294 --> 01:17:30,974
I'm talking about the prices of things should fall

1449
01:17:30,974 --> 01:17:32,074
we're not seeing that

1450
01:17:32,074 --> 01:17:35,054
because it's just continuously

1451
01:17:35,054 --> 01:17:35,834
inflating

1452
01:17:35,834 --> 01:17:37,714
so then the question becomes

1453
01:17:37,714 --> 01:17:41,434
what's the best thing to buy

1454
01:17:41,434 --> 01:17:44,574
gold, real estate, whatever.

1455
01:17:45,854 --> 01:17:47,514
And Bitcoin is the only one

1456
01:17:47,514 --> 01:17:51,214
that does not respond to human demand.

1457
01:17:52,834 --> 01:17:54,214
So every other thing,

1458
01:17:54,274 --> 01:17:57,674
whether it's gold, real estate, stocks, currency,

1459
01:17:57,674 --> 01:18:00,094
if we want more of it, we make more of it.

1460
01:18:00,214 --> 01:18:01,854
You want more houses, we build more houses.

1461
01:18:02,554 --> 01:18:03,894
The price of gold goes up,

1462
01:18:03,954 --> 01:18:06,294
we dig more gold out of the ground, right?

1463
01:18:07,054 --> 01:18:11,114
Gold production is a function of cost of extraction.

1464
01:18:11,434 --> 01:18:14,014
It costs money to extract the gold from the earth.

1465
01:18:14,574 --> 01:18:17,374
If the price of gold is $8,000 or $10,000,

1466
01:18:17,674 --> 01:18:20,254
maybe that justifies pulling the gold out of the ocean.

1467
01:18:21,234 --> 01:18:24,434
If it's $20,000, maybe that justifies us pulling it from asteroids.

1468
01:18:24,954 --> 01:18:26,234
You're never going to run out, though.

1469
01:18:26,514 --> 01:18:28,514
They're just going to keep adding more and more and more and more.

1470
01:18:28,974 --> 01:18:32,674
With Bitcoin, it doesn't respond to human demand.

1471
01:18:32,794 --> 01:18:35,074
It will never go higher than $21 million.

1472
01:18:36,194 --> 01:18:38,634
And if you start understanding the implications of that,

1473
01:18:38,634 --> 01:18:48,394
The math is basically everything in the world that's worth something divided by 21 million forever.

1474
01:18:51,674 --> 01:18:57,134
And that is the hardest thing I think about Bitcoin for people to really wrap their mind around.

1475
01:18:57,634 --> 01:19:07,474
Because what that truly means is the purchasing power of Bitcoin will go up probably faster than everything else forever.

1476
01:19:08,634 --> 01:19:11,354
As long as humanity exists as a species,

1477
01:19:11,594 --> 01:19:12,894
we will create more wealth.

1478
01:19:13,474 --> 01:19:14,854
And as we create more wealth,

1479
01:19:15,714 --> 01:19:17,474
the value of Bitcoin will increase.

1480
01:19:18,814 --> 01:19:19,294
Forever.

1481
01:19:21,294 --> 01:19:21,774
Yeah.

1482
01:19:22,694 --> 01:19:26,054
I remind that Jeff says when he came to the podcast,

1483
01:19:26,234 --> 01:19:26,794
it's fascinating.

1484
01:19:27,274 --> 01:19:31,494
He says that everything will be repriced on Bitcoin.

1485
01:19:32,154 --> 01:19:33,794
It already is being repriced.

1486
01:19:34,274 --> 01:19:35,454
Yeah, and everything is falling to zero.

1487
01:19:35,594 --> 01:19:36,694
Look at the price of homes.

1488
01:19:36,934 --> 01:19:37,854
Look at the price of cars.

1489
01:19:37,854 --> 01:19:43,594
Look at the price of gold. Look at the price of everything over the last 17 years in Bitcoin.

1490
01:19:43,734 --> 01:19:46,054
It is already being repriced. Everything is.

1491
01:19:46,654 --> 01:19:52,374
And in fact, the new incoming chairman of the Federal Reserve mentioned this in a recent interview.

1492
01:19:52,814 --> 01:19:57,334
He said, what Bitcoin forces us to do is to be realistic about what's really happening.

1493
01:19:58,374 --> 01:20:02,114
I'm paraphrasing his language. He didn't use those exact words.

1494
01:20:02,114 --> 01:20:09,874
But because Bitcoin is a fixed amount, you can't mess with it in terms of understanding what it's measuring.

1495
01:20:10,214 --> 01:20:15,434
If the price of everything is collapsing in Bitcoin, that is a clear signal.

1496
01:20:15,954 --> 01:20:21,594
For the first time in history, because it's the first time we've ever had something that was absolutely finite.

1497
01:20:22,894 --> 01:20:27,934
It's the first time we could actually measure everything with an absolute finite measuring stick.

1498
01:20:27,934 --> 01:20:34,174
we'll see if we go to do you believe that uh eventually we'll go to a bitcoin standard so

1499
01:20:34,174 --> 01:20:42,534
that we will bitcoin standard means that we'll measure everything in sats and we use it like

1500
01:20:42,534 --> 01:20:51,214
as we use dollars yes but it may be abstracted i think eventually the bitcoin will be the base

1501
01:20:51,214 --> 01:20:56,094
layer of the next monetary system gold was the base layer of the u.s dollar monetary system

1502
01:20:56,094 --> 01:20:58,734
until we separated the link.

1503
01:20:59,634 --> 01:20:59,714
Yeah.

1504
01:21:00,834 --> 01:21:04,074
I think you're going to have competing monetary systems in the interim,

1505
01:21:04,414 --> 01:21:07,374
but eventually Bitcoin will be base layer money,

1506
01:21:07,494 --> 01:21:10,554
and then there will be derivatives on top of it,

1507
01:21:10,574 --> 01:21:11,954
and you'll abstract it away.

1508
01:21:12,354 --> 01:21:14,194
So will everything be measured in sats?

1509
01:21:14,334 --> 01:21:14,654
Yes.

1510
01:21:14,914 --> 01:21:16,494
Will people think about it that way?

1511
01:21:16,534 --> 01:21:17,034
I don't know.

1512
01:21:17,854 --> 01:21:18,374
We'll see.

1513
01:21:19,014 --> 01:21:20,674
But at some point,

1514
01:21:21,034 --> 01:21:24,834
from a perspective of how the monetary system is constructed,

1515
01:21:24,834 --> 01:21:26,894
yes, everything will be measured in sats

1516
01:21:26,894 --> 01:21:29,534
because the system will measure it in sats.

1517
01:21:29,854 --> 01:21:30,694
Does that make sense?

1518
01:21:31,474 --> 01:21:33,114
Okay, I'll give you an analogy.

1519
01:21:34,234 --> 01:21:35,974
We're using the internet right now.

1520
01:21:36,114 --> 01:21:39,034
We're sending data over the internet right now.

1521
01:21:39,654 --> 01:21:45,174
We're downloading and we're uploading data simultaneously, right?

1522
01:21:46,014 --> 01:21:47,374
That can be measured.

1523
01:21:47,834 --> 01:21:49,394
There's a certain number of packets.

1524
01:21:49,534 --> 01:21:51,794
There's a certain amount of megabytes of bandwidth of data

1525
01:21:51,794 --> 01:21:52,834
that's flowing, right?

1526
01:21:53,514 --> 01:21:54,834
People don't think about that, though.

1527
01:21:55,514 --> 01:21:57,054
All they know is that this works.

1528
01:21:57,874 --> 01:21:58,434
Does that make sense?

1529
01:21:58,814 --> 01:22:00,814
So I think the same thing, you'll see the same thing in Bitcoin.

1530
01:22:00,974 --> 01:22:04,334
You're going to see, you'll still see fiat currencies.

1531
01:22:04,694 --> 01:22:06,434
You'll see derivatives of Bitcoin.

1532
01:22:06,534 --> 01:22:07,734
You're already starting to see it.

1533
01:22:08,534 --> 01:22:10,894
When you see companies, treasury companies,

1534
01:22:11,074 --> 01:22:14,854
that is a securitized wrapper around Bitcoin.

1535
01:22:15,074 --> 01:22:17,594
They're creating wrappers in the wrappers now.

1536
01:22:17,714 --> 01:22:19,174
You look at companies like Strategy now,

1537
01:22:19,214 --> 01:22:20,454
they're creating preferred stocks.

1538
01:22:20,594 --> 01:22:22,434
These are additional derivatives, right,

1539
01:22:22,434 --> 01:22:24,434
that are acting like yield bearing products.

1540
01:22:26,954 --> 01:22:29,514
BlackRock just launched another derivative.

1541
01:22:29,774 --> 01:22:32,354
So you're going to see layers and layers and layers

1542
01:22:32,354 --> 01:22:35,554
that will abstract away what's happening underneath the hood.

1543
01:22:35,734 --> 01:22:38,374
Like people won't know how the engine's running.

1544
01:22:38,474 --> 01:22:40,774
People have no idea about the bandwidth

1545
01:22:40,774 --> 01:22:42,394
and the packets that are flowing and all that.

1546
01:22:42,594 --> 01:22:43,354
They don't care.

1547
01:22:43,754 --> 01:22:44,874
All they know is they get on this thing

1548
01:22:44,874 --> 01:22:45,634
and they talk to each other.

1549
01:22:45,934 --> 01:22:46,794
That's all I care about.

1550
01:22:48,054 --> 01:22:49,674
In the future, it will be like that,

1551
01:22:49,774 --> 01:22:52,374
but the underlying system will be capitalized

1552
01:22:52,374 --> 01:22:53,374
by Bitcoin.

1553
01:22:53,374 --> 01:22:59,434
That's one thing that I always think of how everything will, I mean, how the world will

1554
01:22:59,434 --> 01:23:00,434
adapt to Bitcoin.

1555
01:23:00,434 --> 01:23:01,934
That's the better way to say it.

1556
01:23:01,934 --> 01:23:06,374
And by the way, I also think there will be plenty of people who use Bitcoin natively,

1557
01:23:06,374 --> 01:23:07,374
right?

1558
01:23:07,374 --> 01:23:12,874
Where that's just like sats over lightning or through Fetamins or something like that.

1559
01:23:12,874 --> 01:23:14,894
Will the entire population do it that way?

1560
01:23:14,894 --> 01:23:15,894
Probably not actually.

1561
01:23:15,894 --> 01:23:19,934
It'll be a percentage of the population that understands the technology.

1562
01:23:19,992 --> 01:23:22,472
that will do it that way.

1563
01:23:23,892 --> 01:23:24,072
Yeah.

1564
01:23:25,172 --> 01:23:27,472
And understands the benefits of doing it that way.

1565
01:23:29,252 --> 01:23:33,852
Like, for example, if I get hurt by the centralized system,

1566
01:23:33,912 --> 01:23:34,912
then I seek an alternative.

1567
01:23:35,612 --> 01:23:39,132
If I don't get hurt, I don't even know it's a bad thing necessarily.

1568
01:23:41,012 --> 01:23:42,872
Okay, my example, my case in point,

1569
01:23:43,652 --> 01:23:45,432
there was an interview with Eric Trump.

1570
01:23:45,492 --> 01:23:46,632
He's the son of Donald Trump.

1571
01:23:47,112 --> 01:23:49,532
He runs all of Trump's businesses today.

1572
01:23:49,532 --> 01:23:51,672
right? At one point

1573
01:23:51,672 --> 01:23:53,592
he was on a

1574
01:23:53,592 --> 01:23:55,852
television show. The interviewer

1575
01:23:55,852 --> 01:23:57,732
was asking him, why are you guys doing

1576
01:23:57,732 --> 01:23:59,832
all this Bitcoin stuff? Like, what's that all about?

1577
01:24:00,492 --> 01:24:00,932
He goes,

1578
01:24:02,212 --> 01:24:03,812
I'm going to paraphrase what he

1579
01:24:03,812 --> 01:24:05,552
said. Why don't you try running

1580
01:24:05,552 --> 01:24:07,632
a multinational business where you

1581
01:24:07,632 --> 01:24:09,572
have to do a wire for $100 million

1582
01:24:09,572 --> 01:24:11,452
and you find out your bank accounts,

1583
01:24:11,592 --> 01:24:13,252
you've been debanked.

1584
01:24:13,252 --> 01:24:14,832
Your bank accounts don't work anymore.

1585
01:24:15,412 --> 01:24:17,532
He goes, that's why we're doing Bitcoin.

1586
01:24:17,532 --> 01:24:19,932
Does that make sense?

1587
01:24:20,232 --> 01:24:23,812
He got hurt by the centralized system to the point where he was like,

1588
01:24:24,032 --> 01:24:27,092
oh, I don't want to let them have control of that.

1589
01:24:27,232 --> 01:24:28,292
I want control of that.

1590
01:24:28,972 --> 01:24:43,668
So people who understand this are going to look for a solution to that problem But if they don ever get hurt by that maybe they don know so there will be plenty of people that will use systems until they you know until they find a need

1591
01:24:43,668 --> 01:24:49,048
for for something else that's exactly the point i think that people will start using bitcoin

1592
01:24:49,048 --> 01:24:56,808
based on the that's a fascinating thing that based on the on the needs that you have because even uh

1593
01:24:56,808 --> 01:25:01,068
I just popped into my mind right now the thesis of Jason Lurie.

1594
01:25:01,528 --> 01:25:03,548
He doesn't see it as a currency, right?

1595
01:25:03,768 --> 01:25:07,348
He sees it as a way to protect that and to use it like,

1596
01:25:08,208 --> 01:25:13,168
what is the term he uses, like force power projection?

1597
01:25:13,748 --> 01:25:16,768
Force power projection, yeah, economic force power projection.

1598
01:25:17,288 --> 01:25:19,228
I mean, to put that into more simpler terms,

1599
01:25:19,228 --> 01:25:22,268
if I'm in the United States and I want to spend money

1600
01:25:22,268 --> 01:25:24,028
for an international transaction,

1601
01:25:24,028 --> 01:25:27,208
but all of my adversaries have cut me off.

1602
01:25:28,528 --> 01:25:30,568
I can't send gold because we're at war.

1603
01:25:30,648 --> 01:25:32,008
If I send a ship, they're going to sink it.

1604
01:25:32,068 --> 01:25:33,548
If I send a plane, they're going to shoot it down.

1605
01:25:34,508 --> 01:25:35,168
Does that make sense?

1606
01:25:35,568 --> 01:25:37,508
Or maybe we're being sanctioned.

1607
01:25:37,588 --> 01:25:39,228
I'm not saying the U.S. is ever going to be sanctioned.

1608
01:25:39,228 --> 01:25:40,928
Right now the U.S. is the one doing the sanctioning.

1609
01:25:40,968 --> 01:25:41,848
But do you understand what I'm saying?

1610
01:25:42,388 --> 01:25:45,688
Those kind of things work both ways, right?

1611
01:25:46,428 --> 01:25:48,388
So I think what Lowry is saying is,

1612
01:25:48,388 --> 01:26:02,324
what if there was this form of money that was neutral No one could stop you from using it Can you use that to project energy economic energy to a different place on the planet as needed without anybody stopping you

1613
01:26:05,804 --> 01:26:07,004
That's another rabbit hole.

1614
01:26:07,544 --> 01:26:09,644
This is another rabbit hole, but it actually becomes,

1615
01:26:09,924 --> 01:26:14,064
at some point that becomes a strategic imperative because there's only,

1616
01:26:14,564 --> 01:26:18,864
I think the number is 200 million blocks a year.

1617
01:26:19,504 --> 01:26:20,724
or two.

1618
01:26:22,484 --> 01:26:24,184
I'd have to get with Bob Burnett.

1619
01:26:24,224 --> 01:26:25,424
He's the CEO of Barefoot.

1620
01:26:26,244 --> 01:26:30,224
There's a specific number of transactions available per year.

1621
01:26:30,344 --> 01:26:31,984
And if you're not in one of those transactions,

1622
01:26:31,984 --> 01:26:34,064
you're not doing what you need to do.

1623
01:26:34,164 --> 01:26:38,204
So this is why I think it is probable

1624
01:26:38,204 --> 01:26:43,484
that at some point the nations of the world

1625
01:26:43,484 --> 01:26:44,824
will be mining Bitcoin.

1626
01:26:45,324 --> 01:26:47,144
Not necessarily because they're interested

1627
01:26:47,144 --> 01:26:48,204
in having the Bitcoin,

1628
01:26:48,204 --> 01:26:54,384
but more so so that they can make sure that they can conduct a transaction when they want to.

1629
01:26:54,384 --> 01:27:00,804
There's a lot of very smart people in this space who believe that certain countries are already doing this.

1630
01:27:00,804 --> 01:27:04,764
Our country is doing it in a small way, but it's doing it.

1631
01:27:04,764 --> 01:27:16,880
Also in the US of course it takes sense Yeah Russia Bhutan there lots of countries that are doing it now Alex we can continue forever but I don want to take much of your time

1632
01:27:16,880 --> 01:27:18,440
maybe we can do a second part

1633
01:27:18,440 --> 01:27:21,160
but I want to thank you a lot

1634
01:27:21,160 --> 01:27:21,940
for your time

1635
01:27:21,940 --> 01:27:24,320
it's so fascinating I love these topics

1636
01:27:24,320 --> 01:27:26,920
it was the same with Larry it was the same with Jeff

1637
01:27:26,920 --> 01:27:28,500
you open a lot of

1638
01:27:28,500 --> 01:27:30,500
rabbit holes and we learn

1639
01:27:30,500 --> 01:27:32,600
a lot so thank you for your time

1640
01:27:32,600 --> 01:27:33,800
I really appreciate it

1641
01:27:33,800 --> 01:27:35,800
thanks for having me

1642
01:27:35,800 --> 01:27:37,100
thanks to you

1643
01:27:37,100 --> 01:27:38,720
and just one thing

1644
01:27:38,720 --> 01:27:40,440
you also have a podcast right

1645
01:27:40,440 --> 01:27:43,200
so let's invite people to go also to your pod

1646
01:27:43,200 --> 01:27:45,220
sure so my pod is

1647
01:27:45,220 --> 01:27:46,820
my pod is the Bitcoin Crucible

1648
01:27:46,820 --> 01:27:48,280
you can follow me on Twitter

1649
01:27:48,280 --> 01:27:49,280
at Alex Stanzik

1650
01:27:49,280 --> 01:27:52,260
just like my name is spelled here on the screen

1651
01:27:52,260 --> 01:27:53,580
at Alex Stanzik

1652
01:27:53,580 --> 01:27:56,420
and I post when we drop those episodes on Twitter

1653
01:27:56,420 --> 01:27:58,820
alright I'm going to share it also

1654
01:27:58,820 --> 01:27:59,880
in the podcast notes

1655
01:27:59,880 --> 01:28:01,980
once again thank you

1656
01:28:01,980 --> 01:28:05,020
guys I hope that you have enjoyed this episode

1657
01:28:05,020 --> 01:28:07,440
surely we'll have a second discussion with Alex

1658
01:28:07,440 --> 01:28:09,040
but yeah

1659
01:28:09,040 --> 01:28:11,300
thank you and see you next week

1660
01:28:11,300 --> 01:28:12,320
ciao