Latest / Simply Bitcoin / Gary Gensler Wants to End Crypto but Support Bitcoin | EP 684

Transcript

Gary Gensler Wants to End Crypto but Support Bitcoin | EP 684 · Simply Bitcoin

• 0:13
  Yeah, welcome to somebody Bitcoin live your number one
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  source for the peaceful Bitcoin revolution in the code.
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  Breaking news called traumatic Warfare will be your guide
• 0:19
  through the separation of money and state.
• 0:23
  Anyways, I was talking to Opti over the weekend and like it was
• 0:28
  obvious to us but now we're making it, I guess we're
• 0:31
  advertising it more. We're telling people simply
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  Bitcoin live specifically is for everybody, you know, we try to
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  make this show as inclusive as humanly possible.
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  life on the show. That people from Nigeria, we've
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  had people from Venezuela, we've had people from Brazil.
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  open, just shoot us a DM and we'll bring you on the show.
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  That's what simply Bitcoin is all about.
• 1:02
  This isn't about just, you know, it doesn't about a certain group
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  of people. It's this is this revolution is
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  about everybody. So shoot us a DM if you're
• 1:11
  interested in coming and simply Bitcoin.
• 1:13
  Get you booked. Anyways, that being said, very
• 1:16
  interesting, use today, Gary Gensler.
• 1:19
  And it's interesting because I was talking to Ruston who's
• 1:23
  dropping hot fire. Check out Simply Bitcoin Clips
• 1:27
  on our YouTube channel and we were talking earlier on the show
• 1:30
  and Opti was there as well. And I was like, it's Gary
• 1:33
  Gensler, secretly a bit Corner. Anyways, huge news, he admits
• 1:36
  that Bitcoin is different Bitcoin is unique on an op-ed or
• 1:41
  I don't know if you'd call that an Kalon New York mag also seems
• 1:45
  to be getting a lot of fire for not shutting down a lot of
• 1:51
  these. A lot of these fraudulent
• 1:53
  exchanges earlier, but I would like to say that, you know, I
• 1:57
  think it's I think people Miss underestimate how much of this
• 2:03
  is out of the hands of these Regulators that had tremendous
• 2:06
  amount of power before when governments had total control of
• 2:11
  the financial system. Now and as we reported on
• 2:15
  Friday's episode, what happens if you over-regulate in a
• 2:19
  specific country? That company will just go
• 2:22
  anywhere right? You know Bit Coin and crypto and
• 2:27
  shit coins. Like 11 in cyberspace, they
• 2:30
  don't stick to a certain jurisdiction.
• 2:32
  So what happens is that these companies just migrated right?
• 2:36
  The u.s. you know, has increased you know the regulation towards
• 2:39
  the industry because of the FTX fall out Hong Kong is like hey
• 2:42
  come here. Here come business over here,
• 2:44
  you know, you have other countries and nation states and
• 2:47
  cities also doing the same and then not to mention the fact
• 2:51
  that FTX wasn't even registered in the united.
• 2:53
  The United States to had like a like a u.s. branch similar to
• 2:57
  what Finance does Finance u.s. right?
• 3:00
  But the company was incorporated in the Bahamas, right?
• 3:03
  So, you know again like I think people gave denser a lot of crap
• 3:07
  and I think that in some of it was justified because Maybe he
• 3:14
  should have stepped in, maybe there should have been more
• 3:16
  regulations. I don't know enough to you know,
• 3:19
  to have judgment on that. But you know it's interesting to
• 3:23
  hear his language because it almost sounds as if he's a
• 3:27
  Bitcoin. ER and when you have the head of
• 3:30
  the SEC basically saying that Bitcoin is unique and that
• 3:35
  everything else is basically a company, you know, a security,
• 3:39
  you know, that's a big deal. That's a very, very big deal.
• 3:43
  So we're going to get into all that, it's going to be a great
• 3:45
  show. I'm really excited to talk about
• 3:47
  the culture as well. I'm gonna bring up my awesome
• 3:49
  co-host. Always optimistic, how you doin
• 3:51
  Opti? What's up guys?
• 3:53
  Sub Nico, you know, obviously I'm excited for Nico Jones to go
• 3:57
  crazy on the news. But to be honest, today, I'm
• 4:00
  pretty high for the culture, Our Guest today, I caught you on
• 4:03
  the, we are bullish would be tissue sessions and he just
• 4:07
  dropped absolute flames. And we got tagged to bring him
• 4:10
  on today. So I'm almost positive.
• 4:12
  Positive the culture is going to be absolute fire today.
• 4:15
  So let's bring in our guest and then we'll get the show on the
• 4:18
  road to go. Absolutely, how you doing CJ?
• 4:22
  Welcome to the show. Happy to have you guys.
• 4:25
  Happy to have you on the show, man.
• 4:27
  It's going to be a lot of fun. All right everybody.
• 4:28
  Let's start this. Let's do it.
• 4:30
  Let's start another week of Simply Bitcoin laugh.
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  Visit not all Dottie you today. All right, everybody, Bitcoin.
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  to see a lot of guys in Miami promo.
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  Code simply. Anyways, price at the time of
• 5:55
  recording is 20 3295. SATs per dollar 4290 for block
• 6:02
  height 770,000, 36 reachable, Bitcoin notes, sixteen thousand
• 6:08
  two hundred eighty seven blocks of the having 60 1464 having
• 6:13
  estimate. April 22nd 2024 total lightning
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  network capacity 5412 Bitcoin around 126 million, u.s. dollars
• 6:23
  in the realized monetary inflation is 1.7 6% continuing
• 6:27
  to take Fiat currencies to Absolute school and the market
• 6:30
  capitalization of Bitcoin 449 billion.
• 6:34
  Dollars with Abby in the grand scheme of things Bitcoin is
• 6:38
  still a tiny baby. Anyways everybody I have a video
• 6:43
  for you guys of Warren Davidson Warren Davidson is a congressman
• 6:48
  and he had some thoughts about this bill that was introduced in
• 6:53
  Congress again. Cbc's and he went on Fox
• 6:56
  Business and he's fighting the good fight which is, you know,
• 7:00
  it's literally a it's it's nice to see that.
• 7:04
  It's nice. Because I feel like a lot of the
• 7:06
  time we just feel isolated and you know again I hate putting
• 7:13
  trust in a politician number one, I got to say that but I
• 7:18
  think that during this transition it's probably a good
• 7:21
  idea to have some of these politicians on your side and at
• 7:26
  least some of them are speaking or thinking the things that
• 7:30
  we're thinking about how catastrophic a CBC would be
• 7:34
  anyways. Let's check out this clip for
• 7:35
  More Davidson on Fox Business. You've been actually dubbed the
• 7:41
  crypto congressman and so I think it's your take
• 7:44
  representative on the bank of international settlements saying
• 7:46
  hey the Battle Is Over crypto lost and that's it.
• 7:52
  Well look, I think your previous guest highlighted it.
• 7:55
  Is it really a war between crypto and Fiat?
• 7:58
  Not currently but there are people like August karstens,
• 8:01
  Augustine karstens, who are making it that way.
• 8:05
  And frankly, the bank of international settlements which
• 8:08
  is the central bank for the central Bankers.
• 8:10
  They're trying to put out a set of standards that normalizes
• 8:13
  Central Bank, digital currencies in, not just any version of
• 8:17
  them, the creepy surveillance State kind that China has.
• 8:19
  And so if we follow this, Vision for the future of money.
• 8:23
  I mean, it's frankly it's pretty dystopian.
• 8:27
  Yeah, I mean look you saying the quiet part out loud.
• 8:30
  I think you know I think we all I think we all agree on that.
• 8:34
  I think it's it's it's common sense but I'm glad that it's
• 8:38
  being talked about and yeah it is dystopian I don't trust
• 8:42
  Augustine. No one knows how to pronounce
• 8:44
  his name. I think his name is in Spanish.
• 8:46
  I will steam which is, you know, a fitting name, I guess anyways.
• 8:53
  I don't know Opti. What are your thoughts on this,
• 8:55
  bro? Like it's It's nice to hear
• 8:59
  that. It's only it's not only Bitcoin
• 9:01
  Twitter saying that he's seaweed he's either gonna be dystopian.
• 9:05
  What are your thoughts bro? Yeah man I mean I say it all the
• 9:08
  time it's like the Bitcoin signal keeps spreading and the
• 9:13
  Bitcoin narrative Bitcoin message is definitely reaching
• 9:17
  the mainstream now and so I think it's awesome.
• 9:20
  I say it all the time and I stole it from bit scene and sour
• 9:23
  mean world and everyone else is living in it.
• 9:25
  And it's only a matter of time until One wakes up to what we
• 9:27
  know to be the truth of the true nature of reality, which is
• 9:32
  Bitcoin is a superior way to store your value to way, you
• 9:36
  know, censorship resistant, and the powers that be do not want
• 9:40
  you to have this Freedom money and, hence, why they're pushing
• 9:42
  see bdcs because it's always been about control and it will
• 9:46
  always be about control or they want to control everything about
• 9:48
  you. And so, this is why we show up
• 9:50
  every single day and, you know, do our best to educate,
• 9:53
  entertain people and tell them what is actually going.
• 9:56
  Going on. They want to control everything
• 9:58
  about you. This is why we saving Bitcoin.
• 10:01
  Yeah. 100%. What are your?
• 10:03
  What's your take on this CJ? I'm always excited when the
• 10:06
  guess, what is your take? What is your take on cbc's and
• 10:12
  this, this Congressman? Yeah, so it's really good to see
• 10:16
  a congressman actually speaking. Like they actually know
• 10:19
  something, you know, it's a relief to see that they're at
• 10:22
  least saying some of the right things, but, you know, I want to
• 10:24
  bring it back to stable coins. Guys, I think one of the biggest
• 10:28
  scams and all of crypto are the current setup for stable coins
• 10:31
  because what really happens is it's just like a regular bank,
• 10:35
  and a regular Bank, you go and you deposit your money.
• 10:38
  And then in the background, the bank doesn't like keep your
• 10:40
  money in the vault and protect it.
• 10:42
  It becomes an asset on their balance sheet, and once it's an
• 10:45
  asset on their balance sheet, they can do whatever they want
• 10:47
  with it. And what the politicians have
• 10:49
  done is, they've made laws where they've created cash
• 10:52
  equivalents, so cash equivalents on our balance sheet are treated
• 10:55
  just like cash. According to gaap principles.
• 10:58
  So these Banks they take your dollars and then they turn them
• 11:01
  into Cash, equivalents like a treasury note, whether it's a
• 11:03
  bill, a bond, or know, most of the time, they're using bills,
• 11:07
  which expire in one year or less, because the inflation risk
• 11:10
  is the least since you can hold it to maturity.
• 11:13
  You know, if they keep raising rates as the rates go up, the
• 11:15
  principal value goes down, but if you hold it to maturity then
• 11:19
  you don't have to sell it on the open market.
• 11:21
  So you don't, you don't get take that principle hit so the banks
• 11:24
  will take your hard-earned money.
• 11:26
  And Write a number on their Ledger, but in the background,
• 11:29
  they take your hard-earned money and they invest in government
• 11:31
  debt. And the reason that they do that
• 11:33
  is because they can pay you 0.5 or 1% or 2% been climbing up a
• 11:38
  little bit, but for the last 10 or 12 years, it's been a 0.1% or
• 11:42
  something. And in the background, there
• 11:44
  collecting the yield from holding that government debt.
• 11:47
  And that same thing is happening in stable coins.
• 11:49
  If you have u.s. DT or USD see what's happening,
• 11:52
  is you're giving them your hard-earned dollars.
• 11:55
  They're turning around and pay Paying you nothing there, just
• 11:57
  Distributing you the token, which is a liability to them, on
• 12:00
  their balance sheet to you. You're holding the token in the
• 12:03
  background, they're holding cash equivalents which right now are
• 12:06
  paying upwards of five percent. So they're earning 5% on your
• 12:10
  savings so you can just go out in the crypto economy and use
• 12:14
  your tokens but you're being massively diluted diluted.
• 12:17
  So you put out a tweet earlier today about the bank of England
• 12:20
  saying, all a digital pound is going to be a great opportunity
• 12:23
  because they're looking at what's going on here in the
• 12:25
  United States. And they're saying look These
• 12:26
  guys are making 5% for just cussing people's dollars.
• 12:30
  At least if you go to the bank, they're paying you a little bit
• 12:32
  or you can put it in a CD, get some kind of remuneration for
• 12:35
  what you have, they're stealing everything from you.
• 12:38
  With these stable coins, you're giving them your reserves,
• 12:41
  they're taking your reserves using the law to play a little
• 12:43
  trick with cash equivalents collecting the yield and then
• 12:46
  giving you nothing. And I think that's why Gary
• 12:49
  thinks it's a security because just because they're giving you,
• 12:51
  nothing doesn't mean there's not yield going on in the
• 12:54
  background. Now, that yield is the same
• 12:55
  scam. Yield that you see with shit
• 12:57
  coins that are selling you yield for when you stake.
• 13:00
  But really when you stake your just not being diluted, right?
• 13:03
  And if you don't stake then you are being diluted.
• 13:06
  Well stable coins are the same thing, you're giving them your
• 13:08
  currency but you there is no opportunity to stay, only the
• 13:11
  company can stake and the company keeps it in the cash.
• 13:14
  Equivalents takes the cash equivalent cash flow and that's
• 13:16
  how they're making almost a billion dollars a quarter.
• 13:19
  Because they have all these reserves from my, all of the
• 13:21
  people and the people get punished.
• 13:23
  What else is new in a Fiat scam, people always get Finished.
• 13:26
  Only Bitcoin protects we the people about that that deserves
• 13:30
  some horns Opti. Absolutely.
• 13:35
  This is why we love bringing on guest, you know, I love that
• 13:38
  take dude. And yeah, and I actually heard
• 13:40
  by the way, it's more than 5% or like 67.
• 13:45
  So yeah, it you know, and one more thing because I haven't
• 13:49
  heard anybody in the industry, talk about this, I think the
• 13:52
  United States Central Bank, digital currency is going to be
• 13:55
  a tokenized treasury and and the reason I think that is because
• 14:00
  everybody knows, right? Even the politicians are saying,
• 14:02
  we don't want this scam coin, we don't want this coin, that's
• 14:05
  going to track US and control us.
• 14:07
  So what's the government going to do?
• 14:09
  They're going to come out and they're going to poke at that
• 14:11
  narrative. And how are they going to do
• 14:12
  that? Well, they're going to work for
• 14:13
  you. The rear the government.
• 14:15
  We love you guys. We're here to support you.
• 14:17
  So you know what we're going to do?
• 14:18
  We're going to make our Central Bank, digital currency, not a
• 14:21
  reserve. Back, stable coin, we're going
• 14:23
  to make it a tokenize treasury that way you can yield to, we
• 14:27
  need to be careful about this because economic incentives
• 14:30
  work, right? That's why Bitcoin works,
• 14:31
  because the economic incentives are so strong.
• 14:34
  So if they start to use these economic incentives, to try to
• 14:36
  incentivize people to give up a little bit of security to give
• 14:40
  up a little bit of a privacy. Because you're going to get
• 14:42
  yield, man, we need to be careful with what they can do
• 14:45
  with a central bank, digital currency as tokenize,
• 14:47
  treasuries, 100%. Yeah, no.
• 14:49
  It's definitely a It's and and you know what scares me
• 14:54
  honestly, CJ is the fact that they don't talk about the
• 14:59
  dangers, right? They only they talked about as
• 15:02
  if it is the is the perfect utopian solution to money.
• 15:08
  And you know, that what and I always refer to this piece,
• 15:12
  right? There's a there's a article or I
• 15:14
  don't know what you would call it a report by the US Treasury
• 15:18
  in that report they mention. In that report, they say that.
• 15:26
  They mentioned stable coins, they mentioned payment platforms
• 15:29
  like venmo, PayPal cash app but they never mentioned Bitcoin,
• 15:34
  right? And I think that the reason that
• 15:36
  they don't mention is because I don't think that they could
• 15:38
  acknowledge that a money can exist without inflation in it
• 15:42
  because if they acknowledge that the, it's the end to the deficit
• 15:47
  spending party. It's the end to the endless
• 15:49
  Wars, It's the end to the bloating, administrative State,
• 15:53
  some people called the, the Deep state right?
• 15:55
  Which is the government continues to get Bigger and
• 15:57
  bigger and bigger and bigger. Because not only do they collect
• 16:00
  more tax revenue year-on-year, right?
• 16:03
  That, you know, in the u.s. I think it's a trillion dollars
• 16:06
  in deficit spending every single year, you know, they're spending
• 16:09
  money. They don't have.
• 16:10
  And the way that they're able to get away with that is through
• 16:14
  the money Printing and I think the CBC is the last attempt to
• 16:19
  hold on to that privilege, like they want to keep it like, they
• 16:21
  don't want to let it go. So like, okay, we gotta come up
• 16:24
  with something in my belief. I really believe this is the
• 16:27
  case. I think CB D C's or complete
• 16:30
  response to bitcoin. I don't think that they would be
• 16:32
  around if it wasn't for Bitcoin, like they're kind of like, you
• 16:36
  know, that, that Meme of like I'm a kid net.
• 16:38
  Like with the, what's that actor's name holding the
• 16:41
  skateboard? Is like, what's up kids?
• 16:43
  You know I'm saying, like that's what cbc's are trying to do like
• 16:46
  hey you know, we're cool to, you know, where digital.
• 16:49
  We're on the quote-unquote blockchain.
• 16:51
  You can use this. You could trust us.
• 16:53
  We're awesome. We're going to respect
• 16:55
  peer-to-peer. We're Respect your privacy.
• 16:57
  It's like dude say after as they're lying to us, right?
• 17:02
  Because yeah I met this on BTC sessions but I gotta hit it
• 17:05
  again because too many people don't really get it.
• 17:07
  They are lying to you if we had inflation with the way that they
• 17:11
  said that we have inflation that people are too successful.
• 17:14
  There's too much demand. What would happen is that the
• 17:16
  cure for higher prices is higher prices because it's prices.
• 17:20
  Go up the producers become more profitable and as producers
• 17:24
  become more profitable. They increase the supply.
• 17:26
  Fly. Well, guess what?
• 17:27
  It's a lot cheaper to produce. 50,000 cars than it is to
• 17:31
  produce 1,000 cars. That's called marginal cost of
• 17:34
  production. So as you increase the supply,
• 17:36
  your marginal cost of production goes down as your marginal cost
• 17:39
  of production goes down then the suppliers can actually lower the
• 17:43
  front end prices and what happens as they lower the front
• 17:45
  end prices, they sell more units, they don't care about the
• 17:48
  front end price. They care about how many units
• 17:50
  they can move. So if we have a strong healthy
• 17:52
  economy, like they say that we did with too much demand, you
• 17:55
  wouldn't be fighting Entire prices, you would be cheering
• 17:58
  them on because the producers would be more profitable, they
• 18:01
  would create more Supply lower cost of their marginal cost of
• 18:04
  production which would lower the front end prices which would
• 18:07
  lead to huge amounts of games and GDP man.
• 18:14
  I'm putting a soundtrack behind what you're saying.
• 18:16
  Cuz it sounds fucking epic. It's your fault.
• 18:22
  It's your to successful. There's too much demand instead
• 18:25
  of just being Honest and saying, hey the value of the purchasing
• 18:29
  power of the currency is being diluted because we have a one
• 18:32
  point four trillion dollar deficit and it's on and on, and
• 18:35
  on and on plus all the unfunded liabilities, the promises of the
• 18:38
  money that we're going to spend is over 100 trillion dollars.
• 18:41
  So they believe in modern monetary theory that the
• 18:43
  government can just create currency with no consequence.
• 18:47
  And here's one more thing, I'll throw in there.
• 18:49
  What they're the other thing they're lying about, besides
• 18:51
  what inflation really is right? Is that they lost my Lost my
• 18:57
  train of thought, just give me one second.
• 18:59
  The other thing that they are lying about with inflation is
• 19:02
  that when they create more currency units and they dilute
• 19:07
  the rest of us, that's the value proposition of Bitcoin, right?
• 19:10
  Bitcoin can't be diluted. There will never be more than 21
• 19:13
  million Bitcoins. So I love that stat.
• 19:16
  You showed in the beginning that said realized inflation rate
• 19:19
  because yeah, with the next having Bitcoins and realized
• 19:21
  inflation rate will be lower than gold but still they'll be
• 19:24
  no more than 21 million. They're going to keep Keep
• 19:26
  creating dollars out the Wazoo and they're going to do it over
• 19:29
  and over and over again. And we are the ones who are
• 19:32
  paying the inflation is taxation without representation, they are
• 19:35
  taking money directly out of our pockets and just spending it
• 19:38
  into existence. Now, the last and this, this lie
• 19:41
  is even worse than the first one because what they're saying is,
• 19:44
  well, we're going to raise interest rates to fight
• 19:46
  inflation. Well, wait a second that doesn't
• 19:49
  make sense because the only two entities in the world that can
• 19:52
  create money, are the government's and the banks.
• 19:55
  And if you look through the lens, Of those, the incentives
• 19:58
  of those, two actors with higher interest rates, and the
• 20:01
  government is going to issue debt at a higher interest rate,
• 20:03
  they have to create more currency units.
• 20:05
  So the higher the interest rate is the more currency units they
• 20:08
  have to create to finance the debt so that creates more
• 20:12
  inflation, not less. Now look at Through The Eyes of
• 20:14
  the banker. You hear a lot of Economist come
• 20:16
  out and say Well, when rates are higher, people don't want to
• 20:19
  borrow listen, everybody can go into the bank and say, I want to
• 20:22
  borrow money. I want to borrow money.
• 20:24
  It doesn't matter if you want to borrow money.
• 20:26
  What Matter is it that is if the lender wants to lend you, the
• 20:28
  money, that's what really matters.
• 20:30
  So as interest rates go up, banks are incentivized to extend
• 20:34
  credit and you're saying well, you're wrong CJ.
• 20:36
  No, that's why. Credit is at all-time highs.
• 20:39
  Credit is at all-time highs because the banks are being
• 20:42
  incentivized to lend because the interest rate goes up.
• 20:44
  And as the interest rate goes up, the risk goes down.
• 20:48
  So they're trying to fight inflation by incentivizing.
• 20:51
  The two parties that can actually create currency units
• 20:54
  to create more currency units. It's really bad guys.
• 20:57
  It's not going to stop. Inflation is going to keep going
• 21:00
  up. We had a little bit of
• 21:01
  disinflation but this inflation is still inflation.
• 21:04
  It's not deflation. And when this next wave of
• 21:06
  inflation comes, people are really going to panic because
• 21:09
  look at Argentina. Look at all these other
• 21:11
  countries. It doesn't matter how high you
• 21:12
  bring the interest rate, the higher you bring the interest
• 21:14
  rate up, but more inflation, you create, that's why it doesn't
• 21:17
  solve the problem. Boom.
• 21:20
  Absolutely, bro, horns. Again, Opti horns.
• 21:22
  You guys love this guest, man. You're absolutely slaying it.
• 21:27
  Completely agree with you. All right, guys, let's get to
• 21:30
  news. We got a lot to talk about.
• 21:31
  Let's do it. The Daily News brought to you by
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  with Swan Ira anyways everybody or take it the tax advantage
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  anyways. Let's check this out.
• 22:35
  This was the bombshell article. Sorry guys.
• 22:38
  Usually I don't try to just read, I try to read a little bit
• 22:43
  and then give my own. Take we get opt, he's take but I
• 22:46
  think that this article was important because you have the
• 22:52
  head of the SEC basically admitting to what bitcoiners
• 22:58
  believe. Right is that Bitcoin is unique.
• 23:00
  Bitcoin is special. So I'm going to read part of Of
• 23:04
  it not going to read all of it, of course, but let's check it
• 23:07
  out and then we'll talk about it.
• 23:08
  So the name of the article is in New York mag it's called can
• 23:13
  Gary Gensler survive crypto winter, DC's top Financial cop
• 23:17
  on Bank manfried blowback anyways check it out as recently
• 23:21
  as a year ago sandbank been freed seemed to be an
• 23:23
  Unstoppable force in Washington. The conspicuously dishevel
• 23:27
  founder and CEO of FTX has positioned himself as a new sort
• 23:31
  of billionaire and crypto entrepreneur, someone who
• 23:33
  promised to do With his extraordinary, wealth was
• 23:36
  publicly discussed supporting Democratic political candidates
• 23:39
  to the tune of a billion dollars in upcoming elections and who
• 23:42
  seemed to offer the possibility of legitimizing an industry that
• 23:46
  has had grown exponentially during the pandemic.
• 23:49
  While operating on the fringes of America's Financial
• 23:52
  regulatory apparatus. We know that bank been freed was
• 23:55
  in the midst of executing, a dual prawns, political and media
• 23:59
  strategy that looks to have been one of the most ambitious
• 24:02
  political influence operations in recent memory.
• 24:04
  Memory. It was testifying before
• 24:06
  Congress about how to regulate crypto markets and behind closed
• 24:09
  doors. He was successfully lobbying for
• 24:11
  a bill that would have enacted A system that was very beneficial
• 24:15
  to him. Meanwhile Bank been freed was
• 24:17
  schmoozing while and offering money to a group of self-styled
• 24:21
  policy professionals and political pundits, who is
• 24:23
  unofficial, seal of approval, conferred, an aura of
• 24:26
  intellectuals. Seriousness in his project at
• 24:30
  the time of his meeting with Gensler.
• 24:31
  Venkman freed was in the process of acquiring a stake in this
• 24:34
  Exchange aiex and he was joined by a group of FDX and IEX
• 24:39
  representatives to pitch a new SEC approved crypto trading
• 24:42
  platform. They included a top F DX lawyer
• 24:45
  who had worked with ganzer and who in private had reportedly
• 24:48
  bragged about his access to Gary.
• 24:50
  This meeting was coming on the heels of a dinner Bank.
• 24:52
  Been freed arranged with the scc's incoming general counsel
• 24:56
  but things didn't did not go as planned for ft x. + IE X grew at
• 25:00
  the meeting last March, they were evidently seeking agency.
• 25:04
  Oil for so-called alternative trading system, a more lightly
• 25:08
  regulated alternative to National Securities exchanges.
• 25:11
  Against Iran is telling sharply, rebuffed the group.
• 25:15
  So again, like, a couple things here.
• 25:19
  Remember 2008, right? So 2008, you know, great
• 25:23
  financial crisis, if you are under the age of 35, you could
• 25:26
  say that it affected, you tremendously, you don't own
• 25:30
  anything. Probably a debt slave
• 25:33
  statistically speaking. I can't afford anything, right?
• 25:37
  No one was held responsible for that, right?
• 25:40
  So and I think that, you know what, if Sam didn't blow up,
• 25:46
  what if CZ didn't call, you know start the domino effect and
• 25:51
  start saying that he was going to sell the FTX token token.
• 25:54
  What if that didn't happen? Well if what if he entrenched
• 25:57
  himself more into the political apparatus what would what would
• 26:02
  have happened? And I think looking at how banks
• 26:07
  are treated when they break the law versus how the end up how
• 26:12
  you know, the average common man is treated, I think says it all
• 26:16
  you know banquettes a slut gets a fine, they see it as a cost of
• 26:19
  doing business and they continued like nothing happened,
• 26:23
  right? And I think that this is what
• 26:25
  was happening, and if it wasn't for CZ dumping his tokens and
• 26:30
  starting that Domino, I don't think the US government would
• 26:35
  have stepped in to be honest. And I think that the a lot of
• 26:39
  the hostility that's coming now stems from trying to save a
• 26:43
  little bit of face. Anyways, it was not the first
• 26:46
  time, the Gensler met with bank been freed or other FTX
• 26:49
  representatives. There was also a previously
• 26:52
  disclose session in late 2021, but when we spoke it was
• 26:55
  unclear. Whether there have been any
• 26:57
  other meetings between the two men, which might raise further
• 26:59
  questions among the public about Bank manfred's access to u.s.
• 27:03
  Regulators genzler's calendar for 2022.
• 27:06
  Have not yet been fully released.
• 27:08
  So questions on this front have persisted.
• 27:11
  So again like this sounds proof of stake AF.
• 27:14
  Right. And we know for example, that
• 27:17
  Brian Armstrong spends a tremendous amount of time in
• 27:19
  d.c. lobbying Regulators as well and it looks like with Sam was
• 27:24
  trying to do is use trying to build a regulatory Mo and use a
• 27:28
  lot of the political donations in order to do and in order to
• 27:32
  stifle competition Ian. And I think that this is an
• 27:35
  embodiment. This is a representation of the
• 27:37
  Fiat system. I always say crypto is Fiat
• 27:41
  times 100, right? Anyways, it is also eminently.
• 27:44
  Reasonable to ask whether the SEC could and should have done
• 27:47
  more to crack down on the industry before.
• 27:49
  Now, it is after all comparatively easy to go
• 27:52
  aggressively after companies or their principles after their
• 27:55
  businesses have been exposed by the press or competitors, as
• 27:57
  financially unsound, it has embarrassed predominant, figures
• 28:01
  throughout Washington, whether it will have any impact.
• 28:03
  Conditions for Gensler by all accounts and ambitious player in
• 28:06
  the bind Administration is still an open question.
• 28:08
  It all occurred at a precarious time for him, he was already
• 28:11
  Under Fire for an ambitious regulatory agenda that had drawn
• 28:14
  the ear of Wall Street and generated internal frustration
• 28:17
  amongst the SEC staff and some of the same members in Congress
• 28:21
  who criticize guns are last year for investigating the industry
• 28:24
  to aggressively including New York Congressman, Ritchie Torres
• 28:27
  and Minnesota representative Tom emmer, by the way, that's the
• 28:30
  same Tom emmer that's been relatively The pro Bitcoin as
• 28:34
  well genzler began and that's the same Tom emmer.
• 28:37
  If my memory serves me Miss Tate correctly, that introduced the
• 28:41
  anti CBD, see Bill again, sir, began his career in government
• 28:45
  service at treasury in the late 1990s.
• 28:48
  After nearly two decades at Goldman Sachs, right?
• 28:51
  The revolving door of DC and there have been slight
• 28:54
  Rumblings, which have made their way into the financial press.
• 28:57
  That ganzer might be interested in leading the department, if
• 29:00
  yell insides to leave at some point in the coming years.
• 29:03
  Particularly, if Biden is re-elected, really interesting
• 29:07
  from the vantage point today, it is clear.
• 29:09
  That bank Madrid was very close to building.
• 29:11
  What has what has been fairly described as a regulatory a moat
• 29:15
  around FDX, locking in a role for himself and his company at
• 29:19
  the top of the crypto industry, the legislation that he that he
• 29:22
  backed called. The digital Commodities
• 29:24
  consumer, protection act would have given the commodity Futures
• 29:27
  Trading commission authority to regulate certain crypto project,
• 29:31
  specifically Bitcoin ether and other Vaguely identified digital
• 29:35
  Commodities and displays to scc's jurisdiction in the area.
• 29:38
  It was an ambitious but straightforward strategy of
• 29:41
  domestic regulatory. Arbitrage that would have
• 29:43
  effectively allowed the company to pick its own regulator in The
• 29:48
  u.s. Fairly or not.
• 29:49
  The seats. Cftc is generally regarded as a
• 29:52
  more plant and less assertive Financial regulator than the
• 29:55
  SEC. Quote, I love the SEC said
• 29:57
  genzler, who ran the agency during the Obama Administration
• 30:01
  as we touch on these uncomfortable.
• 30:03
  Acts implicating. Some of his former colleagues
• 30:06
  quote, you're not going to get me to say anything negative
• 30:09
  about the F, the cftc added. He's just too.
• 30:13
  It's in my blood. So I mean what could you?
• 30:15
  You can make a very strong assumption there?
• 30:20
  Anyways, goes on to say the new Congress is looking again at
• 30:23
  crypto specific legislation against Ur believes that the SEC
• 30:27
  has all the legal tools that it needs over the course of our
• 30:29
  discussion. He articulated straightforward
• 30:31
  view of the agency's reach that much every sort of crypto
• 30:34
  transaction already falls under the scc's jurisdiction, expect
• 30:39
  except spot transactions and Bitcoin itself and the actual
• 30:43
  purchase or sale of goods, or services with cryptocurrencies,
• 30:48
  the everything falls into the scc's jurisdiction except Spa
• 30:52
  coin, transactions, very easy. Everything other than Bitcoin
• 30:55
  genzler said, you can find on a website.
• 30:58
  You can find a group of entrepreneurs, they might set up
• 31:00
  their legal entities in a tax Haven offshore.
• 31:03
  They Have a foundation etherium. They might lawyer it up to try
• 31:07
  Arbitrage and make it harder jurisdictionally or so forth.
• 31:10
  Quote the Bitcoin because of its unique history, and creation
• 31:14
  story is fundamentally different from other crypto projects.
• 31:18
  In this respect quote. They might drop their tokens
• 31:22
  overseas at first and contend to pretend that it's going to take
• 31:25
  six months before they come back to the he continued.
• 31:28
  But at the core he argued these tokens are securities because
• 31:31
  there's a group in the middle and the public isn't Dissipating
• 31:34
  profits based on that group, the claim that crypto investors are
• 31:37
  hoping to profit based on the efforts of those intermediaries
• 31:41
  and is in much the same way that stockholders and public
• 31:44
  companies, hope to see their investors appreciate over time
• 31:47
  is Central to genzler's position that as legal matter.
• 31:50
  They're actually transactions in Securities that fall within the
• 31:53
  scc's jurisdiction. As the matter of Securities law.
• 31:56
  Against others view is not that hard.
• 31:58
  Your stand, though. It is still being tested in the
• 32:00
  courts. The agency racked up a
• 32:02
  significant win last But there are other pending legal
• 32:05
  proceedings, that are eagerly awaited by industry observers.
• 32:09
  And there's a well resource crypto Lobby that is not likely
• 32:12
  to back down anytime soon. So a lot to a lot to talk about
• 32:16
  there but I think the part that really stuck with me is that the
• 32:20
  person that could potentially become the next US, Secretary
• 32:25
  replacing Janet Yellen specifically.
• 32:27
  If Joe Biden is re-elected believes that Bitcoin is not a
• 32:31
  security believes that cryptos our Securities and his Logic for
• 32:35
  that is very sound. Is what bitcoiners have been
• 32:38
  screaming from the rooftops from for a very long time.
• 32:42
  Now, is this going to stop crypto?
• 32:45
  Absolutely not. It's just going to move
• 32:47
  overseas. But is it going to stop crypto
• 32:50
  businesses from operating smoothly in the u.s. 100%?
• 32:54
  Now, do I believe that he's going to have the capacity to
• 32:58
  see it this way? I don't think so.
• 33:00
  I think that he's dealing with the Behemoth that is coinbase.
• 33:03
  And coin basis of is a public company and they're going to try
• 33:07
  to protect their business, right?
• 33:09
  And if these tokens are labeled as Securities, it is going to
• 33:14
  hurt their business. So they're going to try to fight
• 33:17
  this tooth and nail they decided to double down on the chicanery,
• 33:22
  right? There's other Bitcoin companies
• 33:23
  that I believe are going to prove that you can have a
• 33:26
  Bitcoin only Exchange and be a public company.
• 33:29
  I believe that's humanly possible and they're going to
• 33:31
  prove that I believe, right? But coinbase said no, coinbase
• 33:35
  said no we have to build a business around shit, coin
• 33:39
  casino and now they have to double down on the flag.
• 33:42
  They have to protect their position that selling these shit
• 33:46
  coins is good, right? And look, if people I'm a free
• 33:51
  market Maxie, I'm a Libertarian at heart.
• 33:54
  If people want to spend their hard-earned money on Bose coin
• 33:58
  because they fucking see fit, I don't think it's the
• 34:01
  government's place to fucking get to dictate that.
• 34:04
  I think that Bitcoin is going to win in the open market but at
• 34:09
  the same time I think it would be a disservice not to bring up
• 34:13
  the fact that someone as powerful as genzler feels a
• 34:17
  certain way about Bitcoin and he feels a certain way about crypto
• 34:21
  and that he clearly sees the differences between the two.
• 34:25
  He mentioned it, in his own words, there he mentioned the
• 34:28
  Virgin birth, he mentioned the unique creation of Bitcoin,
• 34:30
  remember when Bitcoin was created, right?
• 34:33
  Right? There was no value proposition,
• 34:36
  right? So when Satoshi created, bitcoin
• 34:38
  had no idea that it was going to have value was an experiment,
• 34:43
  right? So it created this, like you
• 34:45
  know what, we call the Virgin birth, right?
• 34:47
  Every other crypto project that was born.
• 34:49
  After the fact, the founders knew in the back of their mind,
• 34:53
  that that could have value. Therefore, they can dump it on
• 34:55
  other people and then comes the misalignment of incentives.
• 34:59
  Not to mention the fact that Bitcoin is not controlled by
• 35:01
  anyone Satoshi disappeared. Some I think he died, right?
• 35:05
  I have no idea, right? But Satoshi is not in the
• 35:08
  picture, right? So Bitcoin has blossomed and
• 35:11
  it's just grown out of it. The second largest
• 35:13
  cryptocurrencies controlled, by the etherium foundation of which
• 35:17
  AME iguchi. The lady, that was sitting the
• 35:19
  lady. That's on that Foundation is
• 35:22
  part of the world economic Forum, right?
• 35:24
  And one of the people that were involved in the early aetherium
• 35:26
  project were pitching Central Bank, digital currencies, and
• 35:31
  how they could use etherium to launch their Central Bank.
• 35:33
  Oh, currency, not to mention the fact and I don't hear the
• 35:36
  etherium community talking about this very much after a theory
• 35:39
  and migrated to proof of stake, right?
• 35:42
  A majority of the validators are actively censoring for the
• 35:45
  office of foreign assets control, which is a part of the
• 35:47
  US Treasury. I don't hear a lot of people
• 35:49
  talking about that. So and II never forget guys,
• 35:53
  swans quote, and I think it's so fitting here, right?
• 35:56
  Shit coiners, are more concerned about getting a Lambo in the
• 35:59
  garage. Then the peaceful Revolution, I
• 36:02
  think that's really the case. Ray, the misalignment of
• 36:05
  incentives. Crypto is Fiat times of 100 and
• 36:09
  it's very interesting to see someone of this profile right of
• 36:13
  this high up in government to come to the same conclusions.
• 36:18
  That bitcoiners are coming to not to mention.
• 36:21
  The fact that there is a big that mean there is, I don't know
• 36:24
  if it's a big one, but there is a possibility that he becomes
• 36:27
  the next US Treasury secretary and that would be absolutely
• 36:31
  Bonkers, right? Because then I thought at that
• 36:33
  point, Ain't you know, you would have potentially a Bitcoin ER in
• 36:36
  that position of power, which is interesting.
• 36:39
  And you know, Russ and I were talking about this earlier a lot
• 36:45
  of the things in this article like I'm going to read you.
• 36:48
  This last part most of these tokens will fail.
• 36:51
  Because the question is about these economics.
• 36:55
  What's the what's there there? So again and then he goes on to
• 37:00
  say that, you know, historically speaking history tells us
• 37:04
  throughout through Antiquity to now the economics coalesce
• 37:07
  around one monetary unit, he said there is a network effect
• 37:10
  to having one unit that we humans except as a medium of
• 37:13
  exchange and unit of account, a store of value one unit.
• 37:17
  The two things governments do since Genghis, Khan.
• 37:19
  He observed is basically say that this is what's accepted for
• 37:24
  your taxes and it's accepted for all debts public and bit like,
• 37:29
  It's very opaque. They're like, you know and then
• 37:32
  the the aspect I think the strong word right here is
• 37:37
  there's a network effect of having one unit that we humans
• 37:39
  except as a medium of exchange and unit of account, a store of
• 37:43
  value. I mean, you could make the
• 37:46
  argument that Bitcoin is a store of value you can make the
• 37:49
  argument that Fiat is definitely not a store of value.
• 37:52
  So there's a lot of things in this article that make you
• 37:56
  question. What his actual beliefs are.
• 37:59
  Are you know, anyways, really interesting really fascinating.
• 38:04
  You got to, if you guys want to read the whole thing, I'll put
• 38:06
  in the link description, I really recommend that you do.
• 38:09
  So, anyways, Opti, what's your take?
• 38:12
  Well, first on the ft x news, we've said it for a while, like
• 38:16
  that's the standard Playbook of the regulatory Mo, and now it's
• 38:19
  being exposed, you know, for everyone to see.
• 38:21
  And this is why as bitcoiners we tell you guys, you know, as
• 38:25
  Bitcoin Maxis, we tell you guys to hold Bitcoin only because we
• 38:29
  The Playbook has been exposed for years and yet people still
• 38:32
  completely ignore the Playbook that is happening out here and
• 38:35
  then on the you know again just Gensler news.
• 38:38
  I don't Champion Gensler or, you know, government dictating what
• 38:43
  people can and can't buy but you know, it is just very
• 38:48
  interesting that us bitcoiners have been saying this for a long
• 38:50
  time. And, you know, genzler did have
• 38:53
  that MIT course at block change. So, in my opinion, he obviously
• 38:57
  knows about Coin, he knows it very well in my opinion and
• 39:02
  maybe he knows that he can't control Bitcoin.
• 39:04
  So he's obviously being very intentional with his words, but
• 39:08
  at least he's saying what we've been saying forever like there's
• 39:10
  Bitcoin and their shit coins and I just wouldn't want to be
• 39:13
  holding anything other than Bitcoin right now because it is
• 39:16
  becoming very obvious at least to us here that follow the news
• 39:20
  that there is a lot of stuff coming down the pipeline and if
• 39:23
  you're holding anything other than Bitcoin, you might get rug
• 39:26
  pulled by the US government right now.
• 39:28
  So, like just He'll stay humble Stacks ads.
• 39:31
  Take your Bitcoin into South custody because things are
• 39:34
  starting to get very hairy right now.
• 39:36
  In the, then they fight you stage, like, we're in the first
• 39:39
  Innings and we've, yet to see where this is going to end up.
• 39:42
  But hey, I think Angela knows what what's going on.
• 39:45
  I think he understands Bitcoin very well.
• 39:48
  And again, I just wouldn't want to hold anything other than
• 39:50
  Bitcoin guys. So if you are still holding shit
• 39:52
  coins, you better re-evaluate your situation right now, 100%
• 39:56
  100%, but, you know, it has me Added.
• 39:59
  It has me divided because it's like I won the there the you
• 40:02
  know, there's a part of me that's like you could say the
• 40:04
  state is part of a you could you could spice it up like that.
• 40:07
  The state is part of me is like yeah, regular t-shirt coins out
• 40:10
  of existence. But you know, my my rational
• 40:13
  mind is like non Nico like let Bitcoin win on the open market,
• 40:17
  it will win on the open market. Let the let the free market do
• 40:20
  its thing, you know. So, but it's really interesting.
• 40:23
  Anyways, guys, I have to run op T to your show.
• 40:26
  Wait wait, wait, we're getting CJ's.
• 40:27
  CJ's, what's your take on this? Yeah.
• 40:30
  So I got news for everybody. A lot of stocks out.
• 40:34
  There are shit coins to all right.
• 40:36
  I mean, just look at all these companies that have just made no
• 40:41
  money whatsoever. They might produce a little bit
• 40:43
  of Revenue, but they produce zero profit, and their PE
• 40:47
  ratios, or price-to-earnings ratios are through the roof and
• 40:51
  that's because their shit coins. So, I think it's a little bit
• 40:55
  from Gary. It's a little bit weird because,
• 40:58
  you know, I think, Ink in the library case, the judge ruled
• 41:03
  that the secondary sales of those tokens were not
• 41:06
  Securities. So I think what Gary is really
• 41:09
  positioning the SEC for is to go to these companies that didn't
• 41:13
  properly register and to find them.
• 41:16
  And that's not to say that they're going to be closed down
• 41:20
  and shut out of existence. I think they're going to get
• 41:23
  their slap on the wrist, and they're going to have to pay a
• 41:25
  fine in order to continue on and you have to be careful for that.
• 41:29
  Because whether it's a shit coin in the crypto economy or shit
• 41:32
  coin in the traditional stock market, there's a plethora of
• 41:36
  them out there where he really hits the nail on the head comes
• 41:39
  down to the shirt, I'm wearing right here, proof of work,
• 41:42
  equals cost of production equals natural asset value.
• 41:46
  And Bitcoin is a commodity and like, any other commodity there
• 41:50
  has to be a business decision that's made around that
• 41:54
  commodity based on production and consumption, right?
• 41:57
  Because if it cost you and dollars to produce a car and you
• 42:01
  can turn around and sell it for twenty five or thirty thousand
• 42:03
  dollars, that's great. But if it cost you forty
• 42:06
  thousand dollars to produce the car, you can't sell it for
• 42:08
  twenty five or thirty thousand dollars.
• 42:10
  This is just basic business 101 well Bitcoin being a commodity
• 42:15
  fits right into that, you know, shit coins, both stock sanding,
• 42:19
  and dogecoins and all those other things.
• 42:21
  They don't have this kind of business process that we see in
• 42:25
  traditional asset classes like Bitcoin as a commodity.
• 42:28
  It costs on the Her right now cost me around 18,000 dollars to
• 42:32
  produce a Bitcoin. And I'm you know, I'm a smaller
• 42:34
  minor and I pay a higher cost per kilowatt hour.
• 42:37
  So I think I think some of the bigger boys are paying around
• 42:39
  1415 to produce a Bitcoin, but the point is that there's a cost
• 42:43
  of production and that costs of production is a fair value.
• 42:45
  That's a fair value for the commodity.
• 42:48
  That's not to say that Bitcoin has to trade at fair value.
• 42:50
  Absolutely not. There's going to be times that
• 42:52
  it trades at a discount. There's going to be time to
• 42:54
  trades at fair value. And there's gonna be times in a
• 42:56
  trades at a premium to that fair value, just like any other
• 42:59
  Commodity in the world but those natural incentives in Bitcoin.
• 43:03
  Coupled with that free market Genesis block is what makes
• 43:06
  Bitcoin so much different than anything else and that proof of
• 43:10
  work that goes into mining a Bitcoin.
• 43:13
  None of that work goes into any of these other shit coins even
• 43:16
  if fearing the biggest mistake they did was go from
• 43:18
  proof-of-work. The proof of stake 60% simply
• 43:21
  mentioned it, 60% of the blocks on aetherium are now ofac
• 43:25
  compliant. That's not decentralized.
• 43:27
  Bitcoin is the only decentralized Network in the
• 43:30
  world. By the way, the network I call
• 43:32
  it a quantum computer because there is no one nation state or
• 43:35
  even team of nation states that can produce enough.
• 43:38
  Hash rate to attack the Bitcoin, computer, the Bitcoin Network.
• 43:42
  And what is that? That's a quantum computer.
• 43:43
  Quantum computer is something that has so much computing power
• 43:46
  that there's just nothing else that can stand up to it.
• 43:48
  So, we're beyond the point of no return, even if they wanted to
• 43:51
  get rid of Bitcoin, or they change their mind, or they flip
• 43:54
  the script or something like that, Bitcoin is a commodity,
• 43:57
  everybody knows it what the one good thing Thing that can come
• 43:59
  from this is that perhaps we get rid of this capital gains tax
• 44:03
  because capital gains is really hurting the monetary velocity of
• 44:06
  Bitcoin. Bitcoin will be able to more
• 44:08
  easily exchanged hands when you don't have to pay Capital Gains
• 44:11
  when you sell it. So maybe that could be.
• 44:13
  That one benefit that comes from this.
• 44:16
  Again, the shit coin things. It's definitely a benefit, but
• 44:19
  what about all the shit coins in the stock market, to you can go
• 44:21
  by pink sheets. You can buy a look at all the
• 44:23
  companies that were trading at PE ratios of 40 and 50 and now
• 44:26
  they're down 70. 80 90 percent their down worse than The shit
• 44:29
  coins. So you know we have to be
• 44:31
  careful about what we call a shit coin and what we call
• 44:36
  anything else. That's not a shit coin, but to
• 44:37
  me all of the stocks unless they're like a dividend yielding
• 44:40
  stock, our shit coins, especially when the risk-free
• 44:43
  rate is above the wrist, great, right?
• 44:45
  Treasuries, are at five percent right now for six months and
• 44:49
  what's the dividend paying on some of these dice dividend?
• 44:51
  Yielding stocks, we're getting to the point where the risk free
• 44:54
  rate is going to soon be higher than the risk rate and the ship.
• 44:59
  It coronary that's going on in the traditional stock market is
• 45:01
  going to be just as evident as it is in the crypto shit coin
• 45:05
  Market. But Bitcoin is immune from that.
• 45:07
  Because if there's a whole different economic principle and
• 45:10
  incentive structure behind it, it's not based on the
• 45:12
  performance of the company. It's based on the producer
• 45:15
  economics, the proof-of-work, the cost of production setting
• 45:18
  the natural asset value. Protecting our time and energy
• 45:22
  creating a fair value price. And then us as bitcoiners making
• 45:26
  the right decisions of when to use that Bitcoin, spend that
• 45:28
  Bitcoin. And obviously if the coin is
• 45:30
  that fair value or a discount just wait, wait till it goes to
• 45:34
  a premium and when it goes through a premium by your family
• 45:36
  home by your car, take advantage of what Bitcoin is doing for you
• 45:39
  by storing your time and energy properly through time and space
• 45:44
  man, I just have the meme in my head just let CJ cook right now
• 45:48
  just let CJ cook. So we're going to jump in the
• 45:50
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• 45:53
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• 46:00
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• 46:23
  All right, let's go. All right.
• 46:24
  So CJ, I listen to this. We are bullish with BTC sessions
• 46:30
  and this is where this whole conversation is going to start
• 46:34
  from. Because people tagged us to like
• 46:36
  yo, we need this pure optimism on simply Bitcoin and you kind
• 46:40
  of told me some things that you'd like to talk about.
• 46:42
  I have some questions over here. We are on a little limited time
• 46:45
  span, but I'm going to just to you up so that you can go in and
• 46:48
  give the our audience just a pure signal.
• 46:51
  So the first one I think is this idea that you You said on
• 46:55
  session show that Bitcoin is more than digital gold, its
• 46:58
  digital collateral. And I absolutely love this
• 47:00
  because when you when you kind of painted the illustration of
• 47:04
  what's going on though, the traditional Financial world is
• 47:06
  just debt. On top of debt, on top of a
• 47:09
  derivative debt. It's just like one giant Ponzi
• 47:11
  scheme all the way down on debt. And I like as a big corner, I
• 47:16
  fully can see this, but it's very interesting that most
• 47:20
  people are just completely mind blind to what is actually going
• 47:23
  on in the world and what our Financial system really is.
• 47:25
  So T you out bro. Rant.
• 47:28
  Let the people here. Yeah, so the number one problem
• 47:32
  in the traditional system especially right now is that you
• 47:35
  know I don't know if it's malicious or if it's just
• 47:37
  incompetence, we talked about the inflation issue before right
• 47:40
  there, raising interest rates to fight inflation but it actually
• 47:43
  does the opposite. Well when they raise interest
• 47:46
  rates they lower the principal value of the bond bill or the
• 47:50
  know. So the treasury debt the
• 47:51
  government that is backing the entire system.
• 47:55
  Its banking your bank deposits, your mortgage your car loan.
• 47:59
  I mean it Literally backing everything and these people they
• 48:03
  think they have to raise the interest rates to fight
• 48:05
  inflation. But what happens is when they
• 48:06
  raise the interest rates, they're artificially, diluting
• 48:10
  the principal value of the backbone, collateral of the
• 48:13
  entire system. So, I mean, you can imagine if
• 48:17
  you borrow against your Bitcoin and Bitcoin is worth 100,000 and
• 48:21
  you can borrow up to 70% of it. So you borrow 70,000 dollars and
• 48:24
  the price of Bitcoin starts to go down.
• 48:26
  You start to get worried because you know, if it goes down, 30%,
• 48:29
  you're going to get a Call, you're going to get liquidated,
• 48:31
  they're going to take your collateral so they don't lose
• 48:33
  money on the loan. Well, the same thing is
• 48:36
  happening in the traditional system except it's not Bitcoin,
• 48:38
  that's difficult, the collateral, it's the treasury
• 48:40
  debt. That's the collateral.
• 48:42
  And as they raise, the interest rates, they're artificially,
• 48:45
  lowering the principal value of the collateral.
• 48:48
  So they are destroying the system from within their
• 48:50
  destroying the backing and the the foundation of the
• 48:54
  traditional system from within. And and again I don't know if
• 48:57
  it's maliciousness or if it's incompetence.
• 49:00
  It just doesn't work because it's debt-based.
• 49:03
  Bitcoin is equity-based. Bitcoin is proof of yesterday's
• 49:06
  hard work. Debt is proof of tomorrow's
• 49:09
  promise. Well promises aren't good for
• 49:11
  shit when shit hits the fan so we need to go back to an equity
• 49:15
  based system and that's what Bitcoin is doing right now.
• 49:17
  It's transforming when I first started in Bitcoin in 2014 it
• 49:21
  was it was called digital gold and that's kind of where my
• 49:24
  journey started then we had the having and I got into mining all
• 49:28
  that stuff but I thought of it as digital.
• 49:30
  Gold. But what I've seen happening now
• 49:32
  is that Bitcoin is transforming from digital gold to digital
• 49:36
  collateral and that's a big deal, because the gold market,
• 49:39
  the store value market is a 12 trillion dollar market, which is
• 49:42
  a huge Market but Bitcoin collateral.
• 49:44
  The collateral Market is a multi hundred trillion dollar market,
• 49:48
  so we're no longer talking about just twelve trillion.
• 49:50
  We're talking about multi hundred trillion dollar market
• 49:54
  that backs the entire system. That is the foundational
• 49:57
  Cornerstone of the entire system.
• 49:59
  Now, what's great about Bitcoin becoming this collateral is that
• 50:03
  it's the backbone to the system and the internet economy.
• 50:06
  And the internet economy is an aggregate economy of the entire
• 50:10
  world, China, Russia, the Silk Road European Union.
• 50:14
  It doesn't matter what country you are, what are you are, who
• 50:17
  you come, who you team up with no one country or team can
• 50:21
  out-compete the internet economy because it's an aggregate
• 50:24
  economy of all the peoples. And what happens is in the
• 50:27
  traditional economy, you have a group of men when the Federal
• 50:31
  Reserve Board of Governors determining the price of money.
• 50:34
  Now, look, I said this on BTC sessions but it's worth saying.
• 50:37
  Again, if those people can't tell us the price of milk or the
• 50:40
  price of eggs or the price of bacon, and our response to that
• 50:43
  is, hey, let the free market decide what the price of milk,
• 50:46
  eggs and bacon is. Why the hell are these people
• 50:48
  allowed to tell us the price of money?
• 50:50
  What's the difference between the price of milk in the price
• 50:52
  of money? Interest rates are the price of
• 50:54
  money and we're allowing men to dictate to us the price of
• 50:58
  money. And that is the The fundamental
• 51:01
  flaw in the traditional system and they don't even know that
• 51:04
  they're stabbing themselves in the back by raising the interest
• 51:07
  rates and devaluing the collateral.
• 51:09
  So they're adding, you know, they're supposed to be fighting
• 51:11
  inflation to make the system more secure but in actuality
• 51:14
  they're increasing the amount of risk.
• 51:16
  They're increasing the amount of Leverage because they're
• 51:19
  devaluing the collateral that backs everything.
• 51:22
  Now, in the internet economy, we have free market interest rates.
• 51:25
  It's the only economy in the world that has free market
• 51:28
  interest rates and The other economy in traditional markets,
• 51:32
  they think they're smart enough to tell us what the price of
• 51:34
  money is. But in the internet economy,
• 51:36
  look when the supply of money is high.
• 51:38
  And the demand for loans is low interest rates, go down when the
• 51:42
  supply of money is low in the demand for loans is high
• 51:44
  interest rates go up. It's a free market price
• 51:48
  equilibrium and that is what makes Bitcoin a better
• 51:52
  collateral. There are other things like fast
• 51:54
  and easy settlement, right? Like Bitcoin versus gold.
• 51:57
  You don't have to fly Bitcoin across the world.
• 51:59
  You can set In ten minutes. It's not going to be a big deal.
• 52:02
  It's cheap, it's easy, its secure gold is not so Bitcoin.
• 52:06
  Can do what gold could never do which is become the collateral
• 52:09
  of the system and we're seeing it happen in the internet
• 52:12
  economy. While the traditional economy,
• 52:14
  self implodes itself, and that free market interest rate is so
• 52:17
  powerful, because free market always wins.
• 52:21
  There's no centrally planned Market that ever lasted that
• 52:25
  ever survived. That's why all Fiats go to 0 all
• 52:28
  fee oxtail shit even when Rome had gold and silver it failed
• 52:32
  because they diluted the gold and silver.
• 52:34
  So even if you're using a hard money, it's not going to work.
• 52:37
  You need something that is so secure that can never be
• 52:40
  diluted, no matter what. And that's going to be a
• 52:42
  successful backbone foundational.
• 52:45
  Cornerstone to a successful economy that delivers value to
• 52:48
  We, the People rather than extracting the value.
• 52:50
  Because as they raise those rates, most people, it's the
• 52:53
  same thing with the bank's, right?
• 52:54
  Oh, we're interest rates, go up, so people don't want to borrow
• 52:57
  knows Through The Eyes of the lender, same thing.
• 53:00
  Free market internet economy when interest rates go up,
• 53:03
  Savers are going to make more money.
• 53:05
  And guess what? When Savers make enough money,
• 53:07
  they eventually become standards.
• 53:09
  And when Savers become Spenders, that's how you stimulate an
• 53:12
  economy. That's how you grow an economy.
• 53:14
  That's how you increase demand, without putting a bunch of
• 53:16
  money. You empower, the Savers, the
• 53:19
  Fiat system, exploits. The Savers.
• 53:22
  It takes our purchasing power from us.
• 53:24
  It takes everything from us. It's designed to extract value
• 53:26
  from us. Bitcoin is designed to protect
• 53:29
  and secure. Our value deliver back to us so
• 53:32
  that we can spend it into the economy.
• 53:34
  So that the across the economy, grows in a right and healthy
• 53:37
  sustainable Manner and people are not talking about it and
• 53:40
  this industry I don't understand why this point is so overlooked.
• 53:44
  Yeah, digital go. We know that it's locked in.
• 53:46
  Nothing can take Bitcoin. Nothing can compete with Bitcoin
• 53:49
  if someone says something is competing with Bitcoin?
• 53:51
  You're an idiot. You don't know what you're
• 53:52
  talking about. Stop listening to those people.
• 53:54
  Bitcoin is the only thing that can ever be the reserve asset of
• 53:57
  the internet economy. Nothing can compete.
• 54:00
  That now, how do we unlock Bitcoin from becoming an idol
• 54:04
  asset like digital gold to being digital collateral?
• 54:07
  Well, it's going to take companies like Swan.
• 54:10
  It might be a couple other protocols that are built on top
• 54:12
  of Bitcoin through different wires, but eventually Bitcoin is
• 54:16
  going to be unlocked and it will transform, it will evolve from
• 54:20
  digital goal to digital collateral and when it does
• 54:24
  that, the fair value isn't just going to be based on the cost of
• 54:27
  production in the natural asset value.
• 54:30
  Now, it's going to be based on the cash flows that are unlocked
• 54:33
  by making a collateral. It lightning is a really good
• 54:36
  example, because lightning is about monetary velocity.
• 54:39
  Lightning is about allowing people to use Bitcoin to make
• 54:41
  those peer-to-peer transactions in a way that the L1 can't
• 54:45
  really do right now because I can't facilitate that amount of
• 54:48
  transaction. So, what do we do?
• 54:49
  We take Bitcoin, we collateralize it in a lightning
• 54:52
  Channel and then we use that value.
• 54:54
  We unlock that collateral value to make changes between people.
• 54:58
  And what, guess what? If you were Lightning Channel,
• 55:00
  you can make money because you charge a little bit of a fee
• 55:03
  that unlocks Bitcoin, that makes Bitcoin yield producing asset.
• 55:07
  And like I mentioned before, this is not shit coin meal,
• 55:10
  okay? Like if you have like dot or it
• 55:13
  just to take your pick any shit coin, where they tell you that
• 55:16
  you're making yield, you're earning yield.
• 55:18
  You are not earning you because to earn yo, you got to remember
• 55:22
  that word earn, right? If you're just printing coins,
• 55:25
  that's the ayats can. That's Fiat.
• 55:27
  Shit coin. There just printing coins and
• 55:29
  get in. Handing them out that's not
• 55:31
  earned earned yield is something where you're delivering a
• 55:34
  product or a service and that demand for that product or
• 55:37
  service has a foundational. Demand layer.
• 55:39
  Just like lightning, where people want to make pizza p
• 55:41
  changes and they're willing to pay a little bit of the fee to
• 55:44
  do that. That's sustainable earned yield
• 55:47
  and as Bitcoin transforms from digital gold, to digital
• 55:49
  collateral, it will start to produce sustainable earn yield
• 55:55
  and when it produces cash flow now you're talking about the
• 55:58
  fair value. Not just Based on cost of
• 56:00
  production and proof of work. But also being based on the
• 56:04
  additional Equity that's produced, it's no longer an idol
• 56:07
  asset. It's a cash flow producing
• 56:09
  asset. So, if you think twenty thousand
• 56:10
  dollars is expensive for a Bitcoin, just based on the
• 56:13
  proof-of-work, natural asset value, you're wrong, it's not.
• 56:17
  But when we go from digital gold, to digital collateral and
• 56:20
  the cash flow element comes into play, watch out, man.
• 56:25
  Just kidding, guys. I think I'm gonna do a curve
• 56:29
  ball today. I know you guys love the memes,
• 56:31
  but I want to, I want to let CJ cook a little bit right here,
• 56:33
  guys. So I'll come heavy tomorrow with
• 56:35
  the memes for you guys and I'll shout out our sponsors at the
• 56:39
  end of the show that that I would have played in the in the
• 56:41
  segment. But I have one more question.
• 56:43
  And this is something that I really enjoyed when you were on
• 56:46
  sessions. And it's this idea that we are
• 56:49
  at the end of The Dollars currency life cycle.
• 56:53
  But the real believe as bitcoiners we say this all the
• 56:55
  time, but I really loved your your receipts like how do Do we
• 57:00
  know this and I loved how you laid this out.
• 57:03
  So, drop this for the people after you already been cook it.
• 57:08
  That's right baby. Here comes dessert, everybody.
• 57:09
  Okay, look when I start in 2016, Well, I started 2014, but I
• 57:15
  started having the confidence to tell other people aggressively
• 57:18
  in 2016 and I would start by talking about inflation.
• 57:22
  David, look at me sideways, they would look at me and be like,
• 57:25
  what are you talking about, man? This is like, I'm not, I'm not
• 57:28
  really interested. Thank you, but no, thank you
• 57:30
  right now. Here today, the reason we know
• 57:32
  that we're at the end of the currency life cycle.
• 57:34
  That the purchasing power has been pushed to the fullest
• 57:37
  extent. Is that we have inflation?
• 57:40
  Inflation is the signal. That's what people need to get.
• 57:43
  They're like, well, what do we look for what, what's going to
• 57:45
  happen? What kind of sign is their
• 57:47
  inflation? Inflation is the sign.
• 57:49
  Inflation is the sign that the currencies at the end of its
• 57:52
  life cycle, especially when the central bank has to start
• 57:56
  fighting inflation. So by their own admission, by
• 57:59
  having to fight inflation, they are now telling us we are at the
• 58:03
  end of the currency life cycle. And and, you know, a lot of
• 58:05
  people don't really understand this, but the difference between
• 58:08
  inflation and hyperinflation is trust.
• 58:12
  Trust is the Only difference between inflation and
• 58:15
  hyperinflation. Look they have already printed
• 58:17
  enough money to hyper inflate the dollar the dollar if you
• 58:20
  even on the federal reserve's own Education website the Fred
• 58:24
  you see the purchasing power of the dollar.
• 58:26
  It's all the way down below to sense.
• 58:28
  They have already diluted the currency to the fullest extent.
• 58:31
  So why haven't we gone into hyperinflation?
• 58:33
  Well, the answer to that question.
• 58:34
  Is that people still trust them? See now that we're having
• 58:37
  uncontrollable inflation, that needs to be fought by the
• 58:40
  Federal Reserve and by the way, like we said they're fighting it
• 58:42
  the wrong way. They're only making Making it
• 58:43
  worse. That's how we really know this
• 58:45
  is going to get worse. The yields are going to keep
• 58:47
  going up. The principal value of the
• 58:49
  collateral is going to keep going down until they realize,
• 58:51
  oh shit. We need to deliver that value
• 58:53
  back. We need to lower these rates and
• 58:55
  we need to provide more liquidity.
• 58:57
  Which is going to cast us to the next level of inflation and
• 59:00
  that's when I think people are going to lose trust.
• 59:02
  I think people are going to lose trust when they realize, wait a
• 59:05
  second, I'm making more money, but I'm buying less stuff and
• 59:09
  that's what I've been hearing from people.
• 59:10
  People are willing to listen are open to And about inflation.
• 59:14
  Some of them even know about. I'm like, hey, you know what?
• 59:16
  Inflation is really oh yeah. I know what inflation is.
• 59:18
  I know what you're talking about.
• 59:19
  Well, that's a much different thing than in 2016 where people
• 59:21
  are, like, dude, leave me alone. I'm not interested inflation.
• 59:24
  Okay. Right now they know what it is
• 59:26
  because they're making more money, they're buying less
• 59:28
  stuff, the government is fighting it.
• 59:30
  It's in the news and this is the signal guys.
• 59:33
  This is what bitcoiners have been waiting for when I first
• 59:35
  started, someone Jeff Berwick the dollar vigilante who taught
• 59:38
  me about Bitcoin. He said, listen, when this
• 59:42
  really is going to Pick up, steam is when people start to
• 59:45
  realize what inflation is when they're talking about it.
• 59:47
  In the news, when they're start to fight it with the Central
• 59:49
  Bank tools that they have and they're fighting inflation today
• 59:53
  like they never have before. This is not the same inflation
• 59:55
  that we had in 1970s because we have a much larger debt so that
• 59:59
  larger debt with those larger rates that needs to be rolled
• 1:00:02
  over creates even more currency units, and the 70s didn't have
• 1:00:06
  that. Think of it, that they can rip
• 1:00:07
  it up. And then there was a small
• 1:00:09
  interest rate burden right now, you look at the chart for the
• 1:00:11
  interest rate burden. Actually, I've just retweeted it
• 1:00:14
  this morning on my Twitter. The interest rate is at all-time
• 1:00:18
  highs and it will continue to go to all-time highs because the
• 1:00:20
  government is going to spend over one trillion dollars of
• 1:00:23
  budget deficits per year. And that's going to add more
• 1:00:26
  currency into the system. With the rates higher, the banks
• 1:00:29
  are going to create more, they're going to expand credit
• 1:00:31
  which creates more currency, and puts it into the system.
• 1:00:34
  We're doing all the wrong things to fight inflation.
• 1:00:37
  So inflation is the signal, inflation is what tells us that
• 1:00:41
  we're at the end of the currency life cycle.
• 1:00:43
  And the fact that the central bank is fighting inflation,
• 1:00:46
  really is the cherry on top that lets you know Hey listen, if
• 1:00:49
  you're on the sidelines right now and you think Bitcoin at 20K
• 1:00:52
  might be a little expensive. I'm going to wait for it to come
• 1:00:54
  back down to 16 or you know we're going into a recession.
• 1:00:57
  So I'm going to buy it at 10. I don't think that's the right
• 1:01:00
  decision. I think that you need to be
• 1:01:02
  getting your money and your wealth protected by the only
• 1:01:06
  asset Bitcoin is the only asset in the world that was
• 1:01:09
  specifically designed to protect your wealth.
• 1:01:13
  Technically designed to protect your time and energy there
• 1:01:16
  exists. No other Financial tool or
• 1:01:18
  product in the world that can do, what Bitcoin does.
• 1:01:22
  So you need to learn these things.
• 1:01:24
  Now, you need to gain the confidence now, by the way that
• 1:01:27
  confidence is important. Because when price goes up to
• 1:01:29
  250,000 and you're going to take profits, be careful, just make
• 1:01:34
  sure you're not buying dollars. Listen, there's nothing wrong
• 1:01:36
  with buying a beautiful family home in setting yourself up or
• 1:01:39
  buying a car or so you can get around and create more.
• 1:01:43
  Or Fiat mining, but you need to understand if you don't have
• 1:01:48
  Bitcoin and I don't care what you have blue chip, stocks
• 1:01:51
  bonds, bills notes, gold silver. It doesn't matter what you have,
• 1:01:56
  nothing look. You don't buy gold and silver to
• 1:01:59
  get rich, you buy gold and silver to stay rich with
• 1:02:02
  Bitcoin. It's more than just staying Rich
• 1:02:05
  because what we're seeing is the transformation of the asset
• 1:02:08
  class, right? Gold and silver are the hardest
• 1:02:11
  that they've ever been in their only.
• 1:02:13
  To get softer. Bitcoin is the softest that it's
• 1:02:16
  ever been and it's only going to get harder.
• 1:02:19
  You need to get in now because every day that you wait is a day
• 1:02:22
  that works against you every day that you wait is another day
• 1:02:25
  that you're being diluted and inflation is the single by the
• 1:02:29
  way, one quick thing about inflation do not trust the
• 1:02:32
  government's inflation numbers. I have been calling this
• 1:02:35
  financial covid because in in hindsight, we look back at all
• 1:02:39
  the covid they did that, they had all the science that they
• 1:02:43
  Use to justify lockdowns and to rush an uncontested improperly
• 1:02:49
  time and tested vaccine on us. All that science was fake data.
• 1:02:54
  It was fake cherry pick data and we are going through financial
• 1:02:57
  covid right now because the CPI modern monetary Theory, GDP
• 1:03:02
  itself through the GDP deflator. It's all Cherry Picked and fake
• 1:03:06
  manipulated data. If you use the same, CPI
• 1:03:10
  equation that they used in the 80s and you go in and you plug.
• 1:03:13
  Back in those numbers. Last year, we had all time high
• 1:03:17
  inflation. You hear a lot of economists
• 1:03:18
  say, well, inflation didn't get as bad as it was in the 70s.
• 1:03:22
  Well, that's because you're using a different ruler to
• 1:03:24
  measure inflation. If you go back and use the same
• 1:03:27
  ruler, use the same equation, we had all time high inflation.
• 1:03:31
  So how much would the mindset be different today?
• 1:03:33
  How much would people be paying more attention if they realized?
• 1:03:36
  Well, it wasn't as bad as the 70s.
• 1:03:39
  Wait a second. It's worse than the 70s.
• 1:03:41
  Where all-time highs the central.
• 1:03:43
  Bank said it was transitory not to worry about it.
• 1:03:45
  And then they said, well, you know what, we're going to do
• 1:03:47
  what we can about and now it's the biggest problem in the
• 1:03:49
  world. These people they don't know
• 1:03:51
  what they're talking about. If they do know what they're
• 1:03:53
  talking about, it's with malicious intent.
• 1:03:55
  You cannot trust their information and their data, its
• 1:03:58
  Financial covid than CPI right now that it's safe to say if you
• 1:04:03
  want to calculate CPI, just double what they're telling you.
• 1:04:05
  So if it's at six point four, six point five, it's 13% and and
• 1:04:10
  and the the treasury notes are paying 5%.
• 1:04:13
  So if you want the real rate of return on your dollars and your
• 1:04:17
  in treasuries and you're getting that 5%, you have to subtract
• 1:04:20
  the 13% that you're being diluted.
• 1:04:23
  Which means you have a negative 8 return on your Equity, who can
• 1:04:26
  survive with a negative eight percent return on your Equity?
• 1:04:29
  You want to buy eight percent less of a house.
• 1:04:31
  Next year, you want to buy eight percent less goods and services.
• 1:04:35
  What about your wages? Another thing I talk about this
• 1:04:37
  wage price spiral, why wages are the price of Labor just like
• 1:04:43
  Interest rates are the price of money wages are the price of
• 1:04:47
  Labor. So if we have inflation, what
• 1:04:49
  you'd expect that wage prices will go up.
• 1:04:51
  Why are they not keeping up with inflation?
• 1:04:53
  You're being diluted for your time and energy.
• 1:04:56
  Only Bitcoin can protect your time and energy.
• 1:04:59
  There's nothing else that has been specifically designed to
• 1:05:02
  protect your time and energy. Everything is designed to
• 1:05:05
  extract value from you. Bitcoin is designed to deliver
• 1:05:08
  value to you. The sooner you figure this out
• 1:05:11
  the easier time, you're going to have When we go through this
• 1:05:14
  transition, because what I always say is those of us who
• 1:05:17
  lose the least are going to be the best all because we all have
• 1:05:21
  to use the banking system. We all have our automatic
• 1:05:23
  payment set up and our direct deposit set up.
• 1:05:26
  It's just the it's just the way the system works right now.
• 1:05:28
  So we're all tied to that system in some way or another, but
• 1:05:32
  whatever you have in that system you and what I do I consider it
• 1:05:36
  lost its gone because one day this isn't going to be like
• 1:05:39
  everybody just knows. Oh hey you know all the
• 1:05:42
  transitions take In place, you better go to the ATM before you
• 1:05:46
  go to Outback. You know, it's like what?
• 1:05:48
  No, it's not going to work that way.
• 1:05:50
  One day, everything's going to be fine and the next day, it's
• 1:05:53
  gone. It's locked.
• 1:05:55
  You can't touch it. I don't care how much money you
• 1:05:57
  have in the bank. You're not pulling out more than
• 1:05:58
  $200 from the ATM and you're not going to get any of your money
• 1:06:01
  at all. It's gone.
• 1:06:03
  So you might as well account for it being gone now and you might
• 1:06:06
  as well position yourself now because when this happens nobody
• 1:06:09
  knows nobody knows if they say they know they're lying.
• 1:06:12
  Nobody But one that this is going to happen and it's going
• 1:06:16
  to happen in less than 24 hours, and people are going to be
• 1:06:19
  tracked. You're not going to have
• 1:06:20
  anywhere to go. Unless you have taken the time
• 1:06:23
  to set yourself up in an alternative system, and by the
• 1:06:25
  way the alternative system of Bitcoin and the internet
• 1:06:28
  economy, its alternative right now but it's not going to be
• 1:06:31
  alternative in the future. It will be the number one
• 1:06:34
  economy. The internet economy is the only
• 1:06:36
  healthy economy in the world. It's the only economy that's
• 1:06:39
  growing in the world and it's the only economy that's going to
• 1:06:42
  survive. Through all of this because men
• 1:06:44
  can do nothing but mess it up. But in the internet economy, we
• 1:06:47
  can trust the code, we can trust Bitcoin and then we can trust
• 1:06:50
  bitcoiners, like Swan and others who we know are going to offer
• 1:06:54
  good services that we can trust with them.
• 1:06:56
  Hopefully even in a noncustodial fashion, but we need to get
• 1:07:00
  prepared. Now because inflation is the
• 1:07:02
  signal and we are going through inflation right now.
• 1:07:04
  The central bank is trying to fight inflation by raising
• 1:07:07
  interest rates. I already told you why?
• 1:07:09
  That's not going to work. It's not going to work.
• 1:07:11
  And we are going to the transition because At the end of
• 1:07:14
  the currency life cycle, get your shit together guys because
• 1:07:17
  it's going to go down and it's going to go down way sooner than
• 1:07:20
  people think because it's an element of trust and look what
• 1:07:23
  happened to the medical field. Once we, once people look behind
• 1:07:26
  and saw what happened with covid, a lot of people you know
• 1:07:29
  doc whatever the doctor said you should just do you go to the
• 1:07:32
  doctor? The doctor says something.
• 1:07:33
  And he said all right. Yeah it sounds like I trust him.
• 1:07:36
  I look now people are second guessing like you know I don't
• 1:07:39
  like my doctor. I want a different background.
• 1:07:40
  Trust this guy, the trust has been Diluted in the medical
• 1:07:44
  system and rightly. So because of what they did with
• 1:07:47
  covid, well, that's happening right now in the financial
• 1:07:49
  system, but the difference is that the financial system is
• 1:07:52
  dependent on that. Trust the collateral debt.
• 1:07:55
  That backs. The entire system is dependent
• 1:07:57
  on people believing that the government is going to be able
• 1:08:00
  to pay them because there's no credit risk.
• 1:08:02
  The government can just print the money and pay you but the
• 1:08:04
  problem is is when they print the money and pay you.
• 1:08:06
  Now you don't know what you're going to be able to buy because
• 1:08:09
  of inflation people are losing that trust element.
• 1:08:13
  And that trust element lost in finance equals a worthless
• 1:08:16
  dollar. And by the way it equals a
• 1:08:18
  worthless shit coin and every other Fiat scam that you see.
• 1:08:21
  I see a lot of people, I talk to a lot of family offices and
• 1:08:24
  hedge funds. They're talking about Capital
• 1:08:26
  rotation. Well capital is going to come
• 1:08:29
  out of the United States. It's going to go into Dubai.
• 1:08:31
  It's going to go with the Africa.
• 1:08:32
  That's going to go to China and Russia.
• 1:08:34
  It's gonna go into India. A lot of people are under
• 1:08:36
  estimating India because their population, they're growing.
• 1:08:40
  So that's where we're going to see Capital rotations wrong.
• 1:08:43
  Yeah, you'll see some Capital rotation from Fiat scam here to
• 1:08:46
  Fiat scam. They're the real Capital
• 1:08:48
  rotation is out of the fake traditional system that doesn't
• 1:08:53
  have free market and that has the price of money determined by
• 1:08:56
  a group of men into a true free market that's based on free
• 1:09:00
  market principles and it's based on freedom of money.
• 1:09:04
  It's based on truth money and that's the real Capital rotation
• 1:09:07
  out of Fiat. Traditional economies and into
• 1:09:11
  the internet economy and the Free market.
• 1:09:13
  We need to be paying attention to these things.
• 1:09:15
  And we need more people in the industry to stand up.
• 1:09:18
  And talk about these things because too many people are
• 1:09:21
  saying the same things. We need people to like the fire
• 1:09:24
  to serve the dishes. Let people know get your shit
• 1:09:27
  together, and get it now because it's not about 2013 about 2014
• 1:09:30
  about 2100. When the last big one is mine.
• 1:09:33
  It's about the next couple of years and at any moment from
• 1:09:37
  tomorrow or even later today, it's just a couple years from
• 1:09:40
  now when that trust goes. Or access to the traditional
• 1:09:44
  system will be shut off. We will see Capital flight
• 1:09:46
  controls that we've never seen in this country before.
• 1:09:49
  By the way, the country has stolen people's gold before.
• 1:09:52
  So don't think that the United States is all high and lofty.
• 1:09:55
  They have taken they've taken people's gold and made it
• 1:09:58
  illegal. They're going to do these things
• 1:09:59
  again in the future that they're not just going to sit down and
• 1:10:02
  just die willingly. They're going to fight to the
• 1:10:04
  death, so you need to be positions.
• 1:10:06
  Now, you take self custody. Now, need to understand how
• 1:10:09
  these things work now, because at any time in the future, when
• 1:10:12
  this catalyst, Ghost. It's too late.
• 1:10:15
  It's better to be a couple of years early than just one second
• 1:10:18
  too late. Let's go.
• 1:10:23
  All right, all right, well CJ, we're going to continue the
• 1:10:27
  conversation on Twitter spaces, but I gotta roll this out
• 1:10:29
  because the show will get way too long.
• 1:10:31
  But first and foremost, I gotta shout out some of our sponsors
• 1:10:35
  that we usually do, but I had to let you cut.
• 1:10:37
  So, first and foremost, guys, go to Kaboom racks.
• 1:10:39
  If you are looking to get into mining, go check out our friends
• 1:10:42
  at Kaboom rags. I got all your services, all
• 1:10:44
  your needs that you got on telegram.
• 1:10:46
  I think of T dot me. Slash Kaboom racks on Telegram
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  and then last but not least, I am rocking the represent merch
• 1:10:54
  every single day. Go get yourself some represent
• 1:10:56
  merch. I know my opsec my opsec but hey
• 1:11:00
  let's get the conversation going.
• 1:11:01
  Let's get more people talking about Bitcoin and the best way
• 1:11:04
  to do it is where the merge so represent LTD.com promo code
• 1:11:08
  simply Dash Bitcoin and then without further Ado, see EJ.
• 1:11:13
  Where can the people find you? Because they are loving what you
• 1:11:15
  are saying and what are you working on?
• 1:11:19
  Awesome. Yeah, so you can Follow me on
• 1:11:21
  Twitter at CJ, konstantinos. I'm just a minor guys.
• 1:11:26
  I'm no one special here. I'm just someone who dived down
• 1:11:29
  to really intimately, study Bitcoin.
• 1:11:31
  And I'm glad that everybody is finding my viewpoints helpful.
• 1:11:35
  And hopefully, I'll be able to talk more about this in the
• 1:11:37
  future so that people can understand the importance of
• 1:11:40
  Bitcoin. Not only as digital gold, but as
• 1:11:42
  digital collateral and what that means for the holders of Bitcoin
• 1:11:46
  and what kind of Financial Freedom that's going to deliver
• 1:11:48
  to us? Let's go.
• 1:11:50
  I will see D, I'll bring you up on the Twitter spaces so pop up
• 1:11:53
  there and we'll continue the conversation.
• 1:11:55
  All right, guys, I know I did a little curveball, I know you
• 1:11:58
  guys come for the memed but sometimes when I guess just get
• 1:12:01
  rolling, we can't stop the signal.
• 1:12:04
  So tomorrow, come back, I'll add more memes for you guys.
• 1:12:06
  And then of course, if you love what we're doing here, like
• 1:12:10
  subscribe, share the YouTube show.
• 1:12:12
  Let's get everyone to figure out what is going on in the world so
• 1:12:15
  that they don't get rekt so that they don't get holding the bag
• 1:12:19
  when the Fiat system and never Lee explodes.
• 1:12:21
  Of course, we are also an anchor Spotify, apple and part of the
• 1:12:25
  valley for Valerie economy on Fountain.
• 1:12:27
  So stream of sets, we appreciate every one that's doing all.
• 1:12:31
  All the love that we see and come back tomorrow.
• 1:12:35
  This is Monday show. We started this week off strong,
• 1:12:37
  but also come join us on Twitter spaces.
• 1:12:40
  This conversation will continue will bring CJ up and we're just
• 1:12:45
  going to let them cook by. So see you tomorrow.
• 1:12:48
  Peace out till next time. I'm