Latest / Simply Bitcoin / Does This NEW Rule DESTROY Microstrategy's Monopoly?! | EP 1326

Transcript

Does This NEW Rule DESTROY Microstrategy's Monopoly?! | EP 1326 · Simply Bitcoin

0:00
Was MicroStrategy just attacked by the $23 trillion giant NASDAQ
0:06
or is this latest announcement actually protecting MST Rs
0:09
monopoly? Everyone has been talking about
0:12
MicroStrategy, AKA strategy, potentially joining the S&P 500
0:16
later today. But what is really going on
0:19
here? Let's dive into it.
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Of course, I'm not alone. I got my boy Chris here hanging
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out with me today. Nikka will be gone for probably
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the next week. So you're stuck with me, boys
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and girls. Anyways, we did see some
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interesting stuff. So this came out on Yahoo
0:34
Finance. It's really investing.com.
0:37
But NASDAQ made an announcement yesterday and depending on your
0:41
read, you could take away a few different things.
0:44
So the headline is strategy. Shares decline as NASDAQ
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tightens crypto scrutiny so strategy shares declined 3.5%
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after The Information reported that NASDAQ is intensifying its
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scrutiny of companies attempting to boost their stock prices by
1:02
raising funds to acquire cryptocurrency or Bitcoin.
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The report indicated that NASDAQ is now requiring certain
1:08
companies to obtain shareholder approval before issuing new
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shares for crypto purchases, potentially slowing the recent
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trend of firms transforming themselves into crypto focused
1:19
stock. This increased over site could
1:21
delay deals and introduce uncertainty into the market's
1:24
crypto boom. Going further, according to the
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report, NASDAQ can now delist stocks or suspend trading if
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companies fail to comply with these requirements.
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Of course, this strategy is most effective during the rising
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Bitcoin prices, making any regulatory delays potentially
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costly for companies pursuing this approach.
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And with federal securities regulators taking a step back,
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NASDAQ has emerged as the primary entity monitored these
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transactions through enforcement of its own listing rules.
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So if you just heard me say that and you're like, what does this
1:59
actually mean? So it seems like NASDAQ
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literally the day before strategy is on the verge of at
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least that's what the rumors is getting added into the S&P 500.
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We will learn about that later today.
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I believe the time is somewhere around like 5:15 PM Eastern Time
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or maybe it's we'll we'll just say roughly 5:00 today Eastern
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Time. We will know if strategy got
2:24
added. Now all the rumors are saying
2:26
that yeah, they're going to get added again.
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We've seen the requirements here over here on Watch Your Guru.
2:32
Here are the requirements for a company to get added into the
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S&P 500. Of course, it's based in the US.
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It's at least been trading for over 12 months on a major US
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exchange. It has a market cap above 22.7
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billion. A minimum 50% of shares should
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be public monthly trading volume of more than two 150,000 shares
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for six months. The latest quarter has positive
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earnings. The last four quarters total
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earnings are positive. Strategy qualifies for all of
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that. It it's done this, it, it is at
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least from our perspective, probably set to go in, though
3:06
the betting odds are saying it's maybe around 20% that is going
3:10
to happen. And the real conversation here
3:15
is, was this NASDAQ protecting MicroStrategy, which is the read
3:21
that I've been hearing. Essentially we all know
3:24
MicroStrategy has been killing it.
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Right now, they're the biggest corporate treasury, Bitcoin
3:29
corporate treasury company basically period.
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And so if you look at what the report is actually saying, the
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announcement is actually saying, you could read it as is this
3:41
NASDAQ saying that they're going to delist MicroStrategy.
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Because we all know, look, Saylor basically can do what he
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wants. I'm pretty sure he still has
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majority ownership of strategy. And I don't think he has to get
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approval by all shareholders written before he does what he
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does. All the shareholder board
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members, everyone that buys the MicroStrategy stock knows
4:03
exactly what he's doing. This is why they buy that stock
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in the 1st place so that he can raise money and buy more
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Bitcoin. And so one read, like I said,
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could be, hey, is this trying to slow down MicroStrategy?
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Is this trying to slow down Sailor from acquiring Bitcoin?
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Because if he doesn't get the approval from shareholders
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before he makes these plays, then if you read it one way more
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maybe a more cynical view then that gives NASDAQ, you know,
4:29
warrant to basically delist them from NASDAQ.
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And if they drop this again suspiciously a day before
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they're supposedly going to be added, does that mean
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MicroStrategy is not going to get added into this S&P 500?
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Even the headline says, you know, more crypto scrutiny.
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While MicroStrategy stock isn't performing that well, it does
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lead into a narrative of is Wall Street attacking strategy?
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Is Wall Street attacking what Michael Saylor is doing.
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Now there is the other flip side of the coin, which is this could
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be a play to essentially protect strategy's Moat here.
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So like maybe this is strategy's going to get added into the S&P
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500 later today. And then any new company that's
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trying to either be listed on NASDAQ or get added to the S&P
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500. Now there's you know, an
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obligation for NASDAQ to be like actually, you know, you guys
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can't be added because you guys are doing things without your
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shareholders approval. And that would essentially
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create a a regulatory, well, not a regulatory Moat.
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It would essentially create a Moat around micro strategy so
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that they would be the superior Bitcoin treasury company.
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And so we don't know exactly what's going to happen here.
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It depends on how you read this. If you read this cynically, then
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maybe it's, you know, another Wall Street attack on strategy
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essentially trying to dampen the Bitcoin signal going worldwide
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because hey, strategy's been killing it.
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If they get added in the S&P 500, that's basically more
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passive funds coming into MicroStrategy.
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They can continue to do this flywheel.
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And on the flip side, this could be extremely bullish for
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MicroStrategy if they do have this seeming regulatory Moat.
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It's not a regulatory Moat. This seeming announcement Moat
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from NASDAQ, then MicroStrategy is going to be the clear winner
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here. So this could be extremely
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bullish for strategy for Michael Saylor, depending on what
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happens later today. I think this is all hinge on
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what happens later today. If strategy does get added into
6:33
the S&P 500, then I would personally lean towards this
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does seem like some kind of Moat.
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This does seem like some kind of play to protect MicroStrategy to
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kind of maintain their monopoly on acquiring Bitcoin, which
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literally opens up a whole new can can of worms, depending on
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how conspiratorial you want to get around MicroStrategy and the
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Bitcoin they hold. If they don't get added, then I
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think as the headline says this, you know, quote crypto scrutiny,
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Bitcoin scrutiny coming from NASDAQ.
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It's not looking that good for other Bitcoin treasury companies
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at large. But I'm going to stop there
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because we we do have, I'm going to put my tinfoil had on a
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little, little later on this and we might, we might have some,
7:17
some shit posts from strategy themselves that might be
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indicating they are being added here.
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But anyways, Chris, what is your read on this?
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Is this NASDAQ protecting their integrity and the S&P 500 index
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by basically pushing Bitcoin companies out?
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Or is this protecting micro strategy as the leader in the
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Bitcoin treasury company space? I think it's a little bit of
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both, if I'm being honest, but I think this is, this is
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officially the end of paper Bitcoin summer.
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I know summer's not over till September 21st, but I do think
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that this is kind of the coming to the end of it.
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I think it's can be twofold. I think they just don't want
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these Bitcoin treasury companies, Opti popping up and
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basically just, you know, doing this thing of like we're raising
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money to buy Bitcoin, then using that to issue more shares, issue
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more debt, issue more offerings to buy more Bitcoin.
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I, I think they're trying kind of protect ultimately retail
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investors from the collapse that, you know, we see is
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eventually going to happen. You know, maybe not today, maybe
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not tomorrow, maybe not next week or even next year.
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But when things when we go into a bear market eventually,
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because things are always cyclical like that.
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Like I think that a lot of those companies are going to be caught
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holding the bag in the sense that they are over leveraged for
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what they can afford and what they can pay back to either like
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normally the debt holders of those shares.
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So you know, whether it's a bonds that they owe or just
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outstanding debt that they owe on the Bitcoin collateral that
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they have, you know, obviously there can be contagion that they
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have to sell the Bitcoin, the Bitcoin price goes lower in
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order to cover their their bets and stuff like that.
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But Opti, to your point, maybe this is the NASDAQ and you know,
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in conjunction with the S&P 500. I know there are two separate
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entities, but I'm sure they collude and talk with because
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they're, you know, the two of the largest indexes in the world
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that I'm sure that they're like, hey, we're going to let you
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know, regardless of what you guys do, we're putting out this
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guidance, MicroStrategy gets added and then it's going to be
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much harder or much higher threshold for a lot of these
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other Bitcoin treasury companies to get added in.
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I'll add one last point. I think that NASDAQ and S&P 500
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and a lot of them, they worry about like one, it's like, OK,
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so there's Bitcoin treasury companies.
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Obviously there's other companies signaling that they
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want to be crypto treasury companies.
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I know who's the one, Tom Lee, the one Asian guy that's like,
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oh, I want to do a bit Ethereum yet.
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What? Bundstrat.
9:37
Fun Strat. Yeah.
9:37
So like I know that a lot of other people are trying to get
9:40
other crypto currencies in. I know the administration is
9:42
very bullish on crypto at broad. I know Opti and I are more
9:45
Bitcoin and Bitcoin only, but I do think that they're probably
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trying to signal that like we don't want this to become a
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strategy. And I think long term, the best
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thing is to have a business that has a balance sheet and A and a
9:57
Bitcoin business, not to be a Bitcoin treasury company that
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doesn't really have a business except for buying Bitcoin.
10:02
You know, if I could be in the in the business of printing
10:04
money, might as well just call me the Federal Reserve then and
10:06
just buy Bitcoin because that's what I would do.
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But yeah, I I do think that that is they're trying to signal the
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market that they just don't want this to be only Bitcoin treasury
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companies or other crypto companies at large going into
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these indexes on basically just a flywheel strategy.
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Well, the way these big well, I was going to say the way these
10:25
Bitcoin treasury companies are performing, it would seem like
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the S&P 500 would just be Bitcoin treasury companies, but
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they've recently gotten a lot of hot water.
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The stock prices aren't doing too hot on these Bitcoin
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treasury plays, though it does look like MSR is kind of
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rebounding right now. And maybe that's people
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expecting them to get added into the S&P 500.
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But I, I love, I love the, the perspective of like an and both
10:52
kind of situation, you know, that this, this could be kind of
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one of these views. It's like, all right, well, we
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kind of can't ignore MicroStrategy anymore, but we
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want to minimize the damage going further so the other
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companies aren't also just getting skyrocketed into these
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positions. But it did make me think of
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actually someone in the chat said something, It did make me
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think of this ongoing trend that Bitcoin companies in general
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have to go through a higher level of scrutiny than other
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companies. And it's just because it's such
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a new technology or a new sector that we are still kind of looked
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at as a risky thing for for most people out there, this is still
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like a risky bet. This is still something they
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don't understand, you know, the unknown fears people, scares
11:40
people away from it. And so they're, they're trying
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to minimize the damage here. Well, at least that's probably
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what they think. They're trying to minimize the
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damage here, minimize the contagion.
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In our view, it's like guys, you guys are the ones with the real
11:55
problem. We're, we're just trying to fix
11:57
what you guys have created and we still get beat up for it.
12:00
We still have to go through more hurdles than anyone else because
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we are Bitcoin adjacent or we're a Bitcoin company and you're but
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you are starting to see that this this is changing.
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But it seems like we still have a very high level of scrutiny
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because it is a whole new sector, new technology.
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People really don't understand what this Bitcoin thing is.
12:21
So it will be interesting to see what happens later.
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I know the odds around strategy actually joining the SP500 and
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like the betting odds are pretty low.
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At last I saw was 2 days ago, I think it was like 20%.
12:34
So I think, I think the, even though the MicroStrategy
12:37
investors, people that are holding the stock are probably
12:40
super bullish that this is going to happen.
12:42
I'm, I wouldn't necessarily hold my breath yet.
12:45
Like yes, we are entering into the mainstream consciousness,
12:49
but I don't think we really have the respect that we should have
12:52
yet. It's it's working in that
12:54
direction, but I would be pleasantly surprised if they do
12:58
get added to the S&P 500. But it is interesting that we're
13:02
starting to get more scrutiny in our sector.
13:05
We've heard the the conversation for a while.
13:08
It's like if Bitcoin does well, it's going to be a Dang, what,
13:14
what were they saying? They said it's it's going to be
13:17
in a damn, it's going to spread out into all the other sector.
13:21
I forget how they framed it. They said that it would be a
13:24
systemic risk to the financial system.
13:27
And we're like, guys, you are the systemic risk here.
13:30
We're just trying to mitigate the problems.
13:32
But hey, we still get a black eye in the eye of most people,
13:35
so we'll see. Most, most of the treasure
13:37
companies are garbage. Yeah, it's Friday.
13:41
Everyone's everyone's going hard.
13:42
OK. I'll add one more point too.
13:44
It's funny that like you can look over the years and there's
13:47
always like a buzzword of the year.
13:48
Like in the early 20/15/2016, it was like ESG companies and
13:52
they're welcome with open arms. Then even like, you know, you
13:55
get to 2000s, it's like, you know, COVID companies or health
13:58
companies that are trying to protect against COVID or vaccine
14:00
manufacturers. Then in 2021, it's like NFTS are
14:03
the buzzword and like all these different things are like keep
14:06
happening. And then it's like now like
14:08
Bitcoin companies a legit asset. You know, it's growing assets
14:12
like oh, whoa, whoa, you said you're a Bitcoin company.
14:13
Like hold your phone there, dude.
14:15
Like relax. Like where I think a lot of
14:17
crypto companies get cover because of all the lobbying that
14:20
like a 16Z the Coinbase is like all the like Bitcoin doesn't
14:25
have a lobbying arm, you know, outside of BPI.
14:28
And I know coin coin center help with that, but they're more
14:30
crypto adjacent. But it's like we are very small
14:33
niche of a niche of a niche. And it's like we think we're the
14:36
ones that are spreading truth and knowledge and all that and
14:38
we're the only honest money that there is.
14:40
And then everywhere else it's like NFTS, no problem.
14:43
Sell those like, hey, you want to start a crypto fund?
14:46
Yeah, no, no big deal. You want to fleece retail, Go
14:48
ahead ESG. You want to you want to sell
14:51
this pipe dream? Yep, you're all good.
14:52
Like Bitcoin, whoa, slow, slow your roll there, buddy.
14:55
Like things are going to go much slower for you guys.
14:57
So I don't know. Yeah, I think we need to rebrand
15:01
from simply Bitcoin to simply crypto so we can get that cover
15:04
of hey guys, we're we're not really changing anything.
15:07
We're we're just talking about crypto.
15:09
We just want that VC money. Now I'm trolling.
15:11
Oh, now, now I'm going to get cut out.
15:13
I'm going to get clipped out of context here.
15:16
RIP yeah, that's totally going to get clipped.
15:19
I'm totally getting clipped. But anyways, a lot of people on
15:21
Twitter, this is where this is where the maybe the, the Twitter
15:28
conspiracy theories are flying or you know, the, the Twitter
15:31
schizophrenic kind of mimetic powers flying.
15:35
But there was an interesting tweet and I, I'm not reading too
15:38
deep into this, but it is kind of an interesting, interesting
15:41
view here. So this guy tweeted, I don't
15:44
know who it was and other people were tweeting this, but we have
15:47
Tesla launched a $250 tequila two weeks before S&P inclusion.
15:51
And here you got the tequila bottle 250.
15:54
I get. I'm I'm sure it might have been
15:57
good tequila, who knows. And then yesterday, micro
16:00
strategy dropped their $250 dunks with strategy on it.
16:04
Orange, orange blasted. I don't know if we can read too
16:09
much into this, but there has been a lot of people saying that
16:13
the strategy inclusion into the S&P 500 is a lock.
16:17
That's kind of more like the what the rumor mill is saying.
16:19
So I don't know if if Sailor knows something we don't.
16:23
Is this just a coincidence or is this kind of telling us that,
16:27
yeah, they're going to get added later today?
16:29
And I think the historical precedent of a Bitcoin company
16:33
just at large, like, well, rather Bitcoin treasury company
16:36
get an add to the S&P 500. It's going to be a huge
16:39
monumental moment for for the space in general.
16:41
I know a lot of Bitcoiners don't like the financialization of
16:44
Bitcoin, but this is kind of one of those, I don't know, awards,
16:48
you know, maybe maybe you could say this is one of those moments
16:51
where it's like, OK, guys, as Bitcoiners, we have entered into
16:55
the mainstream. We have entered into the big
16:57
leagues. Yes, it's through Sailor sailors
16:59
been doing, I don't know genius master for work in, in, in terms
17:03
of corporate Bitcoin adoption or getting big corporate guys to
17:07
get into Bitcoin. He was the first one to kind of
17:10
dive in all in and now it seems to be catching on.
17:13
So I think later today, again, I believe it's going to be around
17:16
5:00 PM Eastern Time, we will know what is going on.
17:21
I don't know if it's, you know, buy, buy the rumor, sell the
17:24
news scenario here. But I'm sure if it gets added
17:27
the, the, all the bitcoiners that sold their stacks to buy
17:29
MicroStrategy will be very happy 'cause I'm sure the price will
17:32
pump. So will you read into this a
17:36
lot, Chris? The $250 dunks, $250 tequila.
17:41
Is there anything here? Is this just Bitcoin Twitter
17:43
shit posting? I don't know, I, I mean, maybe
17:48
they're hinting that they are going to be included, but I know
17:51
normally markets move with information and their stock is
17:54
only up .75%. The betting markets are showing
17:57
that they're only 20% chance of getting added.
18:00
I think that they're hopeful that they do, but I think the
18:03
markets are unsure. Like normally if someone leaks
18:06
or you know, some S&P 500 staffers like, yo, we're green
18:10
light and like, you know, not saying there's insider
18:12
information that happens OPI, but you know, you see what some
18:15
of the trading records of some people in Congress, I'm just
18:17
saying they haven't loaded up or to my knowledge, Nancy Pelosi
18:20
hasn't loaded up on strategy stock yet, so.
18:24
Yeah, where's the Nancy Pelosi stock tracker?
18:26
Has she been buying MicroStrategy?
18:28
Because if she is, then we know they're getting added.
18:32
Yeah, if they, if she, dude, if she is, we should all, we should
18:36
all load up on MicroStrategy right now, so.
18:39
Just kidding, not financial advice.
18:40
Yeah, that was satire. That was satire.
18:43
I, I do not own MicroStrategy, though I probably should have in
18:48
2020, but it's a little late. It's a little late for them.
18:51
Anyways, guys, I got a jam packed show for you.
18:53
So Bitwise CIO, I believe it was the CIO was on CNBC yesterday
18:59
and he's getting kind of bullish and the numbers are, if the, if
19:04
he is correct, the numbers that are on the horizon to get into
19:09
Bitcoin are going to be staggering.
19:11
Second, we have some more news coming out of banks.
19:13
It looks like banks are all pivoting into Bitcoin.
19:15
And then third, in the culture, there was an interesting clip on
19:21
Diary of Aceo, one of the biggest podcasts right now.
19:24
I was actually looking at his podcast yesterday, just his
19:27
growth and this guy got like 10 million Subs in about like a
19:31
year or two. It's absolutely incredible.
19:34
Anyways, there's an AI researcher on it and he was even
19:37
joking about this is not financial advice, but he has an
19:40
interesting take on AI and Bitcoin and basically why you
19:44
need to buy Bitcoin. So the signal is getting out
19:47
there guys. Anyways, before I keep going,
19:50
got to remind you guys smash the like button, comment on the
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22:28
se-ed.com store. OK, guys, let's go over here to
22:37
Clark Moody's dashboard. The current Bitcoin price is
22:40
$110,800. It actually went up to 113
22:44
earlier today. And then the markets open and it
22:48
dumped back down to 110. Love to see it.
22:51
Love to see it. 9:00 AM Eastern Time, the price of Bitcoin just
22:55
dumped. So when it declined from all
22:57
time high of -11% it's not too bad I guess.
23:01
The market cap is $2.21 trillion and the current block height is
23:04
913,314. OK guys.
23:08
So as I was telling you, first of all, my I was caught by
23:13
Bitcoin archives tweet here he says $15 billion.
23:17
Bitwise tell CNBC that $5 trillion in buying pressure is
23:21
coming to Bitcoin. Send it I, I was watching this
23:24
and I didn't hear 5 trillion in the clip.
23:27
So Archie, I don't know if you missed the one on this or what,
23:31
but it is interesting. It is an interesting tell of
23:34
what's going on. It's essentially what we've been
23:37
saying for a while. It does seem like the
23:40
institutions are here. They haven't fully dived into
23:43
Bitcoin in mass yet. They're kind of still tiptoeing
23:47
into the market, you know, maybe investing 1% of their
23:51
portfolios. But even if they continue to do
23:54
that, I think it's what 3% of hedge fund managers that were
24:01
surveyed around at this was all the hedge funds surveyed around
24:05
their investments in the Bitcoin.
24:06
I think it was like 3% of them are pro Bitcoin, and they're
24:11
really only going into the market at like 1%.
24:13
So there's still a lot of capital to be found here.
24:17
And Bitwise is saying they're having these conversations and
24:21
they might be on the verge of going in bulk, though it wasn't
24:24
5 trillion. But the math does get
24:26
interesting after the fact. So let's talk about this.
24:30
Well, every day a bit wise, we talk to institutional investors.
24:34
These are Raas, hedge funds, family offices, high net worth
24:38
individuals. And the pattern continues to
24:41
emerge that more and more of these investors are starting
24:44
with a 1% allocation to Bitcoin as they build their portfolio.
24:48
And then what we've seen time and time again is those 1%
24:51
allocations ladder up to 2, three, 5%.
24:55
Now many investors that we're speaking to have a much larger
24:58
allocation than that. But we believe that investors
25:01
will allocate somewhere between 1 to 5% of their portfolios to
25:05
Bitcoin. If you just take a step back and
25:08
think about how Bitcoin has a 21 million supply or how Bitcoin
25:13
has a 21 million fixed supply, if you think about what a 1 to
25:18
5% allocation would be for the 100 trillion institutional
25:23
investment space, that's 1.5 trillion of additional buying
25:26
pressure for Bitcoin over the next 10 years.
25:28
And that's why we think there will be a continued sustained
25:31
supply and demand imbalance that will drive the price higher.
25:35
Hey, I would love to see that come in.
25:37
You know, 1.5 trillion sounds good to me, though he did say
25:42
one thing at the end. And then I I do kind of want to
25:44
touch on the 1.5 trillion number.
25:47
It's kind of what I've been saying the last couple of days.
25:50
I think we're all kind of underestimating the unlimited
25:55
bid that we are, that we're on the verge of seeing.
25:58
Yes, it's been trickling into Bitcoin, but we're starting to
26:00
see that these institutions, sovereign wealth funds, nation
26:04
states want to acquire a position in Bitcoin.
26:07
And if they do that and they have this long term horizon
26:11
about it, we might be seeing an unlimited bid in the sense that
26:15
we will always get a buyer, a constant buyer of Bitcoin.
26:18
And of course, what does that mean?
26:19
It means the price is going to go up, Maybe it'll be slower
26:23
than a parabolic run. But if we get a constant bid, it
26:26
means two things, prices going up and probably less of a bear
26:30
market. So I'm all for that now.
26:33
This morning when I was covering this clip, I was chatting with
26:37
Luke about it and he reminded me of we, we were using the five
26:43
trillion number and we were like, man, this is a juicy story
26:45
when it comes to $5 trillion of capital coming into Bitcoin.
26:49
Cause everyone usually thinks that it's like a 1 to 1 addition
26:53
to the market cap. Oh, if 5 trillion or 1.5
26:56
trillion comes into Bitcoin, then that means we're gonna add
26:59
1.5 trillion to the market cap. But again, a lot of us kind of
27:04
forget about the multiplier effect basically because Bitcoin
27:08
is so, it is liquid, but it's so illiquid in, in the sense like
27:12
there's not that much Bitcoin that is being traded.
27:15
It's the multiplier effect exactly exactly.
27:20
And so the multiplier effect is where things get very
27:23
interesting because you you can use different numbers, a
27:27
conservative and I think we heard multiplier effect is about
27:30
3 times. On a more like extreme level,
27:34
we've heard 21. If you use the average, I think
27:38
it was around 8 times. So essentially I'm going to use
27:41
the conservative numbers here. So for every dollar that comes
27:44
in, essentially the price will move up $3.00.
27:47
So if you want to look at 1.5 trillion coming into Bitcoin,
27:52
it's not 1.5 trillion simply being added to the market cap.
27:55
That would lead it to what, a three-point 75 trillion or $3.71
28:02
trillion market cap? That sounds nice, but if you do
28:06
a multiplier fract on this, it's what, about 4 trillion coming
28:11
in? So that would mean Bitcoin's at
28:13
like a $6 trillion market cap. That sounds fun.
28:18
I'm I'd be here for this. And that's a price move to about
28:21
the 300,000 range, like 280 to like 3350 ish, 300,000 per
28:26
Bitcoin opti. I guess the one thing I'll note
28:29
is I think the one to 5% in the 5 trillion is what they're
28:32
saying is you're taking 3 buckets and the three buckets
28:35
are bonds, equities and cash. So bonds globally 300 trillion,
28:40
equities about 115 trillion and money, call it 120 trillion.
28:44
So adding those three together, $135 trillion, but let's just
28:49
say 500 for round even numbers, 1% allocation of those buckets,
28:53
that's excluding gold, collectibles, real estate,
28:57
natural resources, like other things.
29:00
But just in those three buckets of equities, bonds and cash,
29:03
it's saying 1% of 500 trillion. Moving that into the allocation
29:06
of Bitcoin is 5 trillion. So I think that's kind of where
29:09
the loose number of where they're getting it, like global
29:11
assets about 900 trillion, but that's excluding real estate,
29:14
natural resources, gold are excluding Bitcoin as well, cars
29:19
and collectibles and such. But yeah, I think they're just
29:21
kind of looking at those 3 buckets of cash, equities and
29:23
bonds. Well, all right.
29:25
We'll, we'll do, we'll do the $5 trillion capital coming in,
29:29
because this is where the math was, was very interesting.
29:33
It depends on what multiplier effect you're using.
29:35
But if 5 trillion does find its way into Bitcoin and say we're
29:39
doing a multiplier effect of eight, that's what $40 trillion
29:44
added to the market cap. That's where Bitcoin goes from
29:47
where we are today, 100K to about $2,000,000.
29:51
Hey, look, I'm here for that. Let's do this.
29:53
I, I'm all for this. So multiplier effects, very
29:57
interesting. We kind of broke him down on the
29:59
show before, but man, Chris wouldn't wouldn't we love to see
30:03
40 trillion come into the market overnight?
30:06
Well, maybe in a in a couple of months that that would be, that
30:09
would be incredible. Well, I'll add to.
30:12
That point I know Jeff Booth and Greg Voss and a lot of other
30:15
people in the bond markets have talked about this like obviously
30:19
we think Bitcoin is a better version of gold.
30:20
So that's 20 trillion right there.
30:22
I mean, let's just assume, you know, we're going to get to that
30:25
point of we're at 2 trillion that 20 trillion, but then that
30:27
that even excludes 26 trillion of negative yielding bonds.
30:31
Like Opie, I will literally give you this trade and this is not a
30:34
fake thing. I know this sounds ridiculous.
30:35
This is what the US government does literally every day.
30:38
And I know that there's, you know, the threat of, I hate they
30:41
say monopoly on violence or threat of coercion or something
30:45
like that. But basically it's like, hey
30:47
Appi, I will give you a bond yielding like what's it 4% right
30:51
now? And I guarantee that I will give
30:54
you back, you know, on nominal terms, $104.00 worth of that
30:58
bond. You're like, oh, that's OK.
30:59
Again, a 4% return. But that excludes the amount of
31:01
money printing that I'm doing that the purchasing power of
31:04
that $104.00 is only going to buy you about $97.95 dollars,
31:09
you know, maybe $90.00 worth of, of goods and services.
31:12
That's obviously whatever you're assuming your inflation rate is.
31:15
Obviously the Federal Reserve cooks the books and uses CPI
31:18
numbers excluding housing or energy or all these different
31:22
things. And they say it's around 2 now
31:24
it's at 3% because we had COVID and all this money printing.
31:26
But if you want to use other things like the Chapwood index
31:29
or shadow stats, that's much higher at seven, 1015% per year.
31:33
And obviously, we're seeing assets inflate the S&P 500 or,
31:37
you know, stocks, bonds, real estate, whatever it is like
31:39
those, those assets are going up in conjunction with inflation.
31:44
And obviously what they do in the CPI index is they replace
31:46
instead of, you know, 1 LB of steak, we're going to replace it
31:50
1 LB of chicken. Oh, chicken's getting too
31:52
expensive now. Oh, it's 1 LB of pork, Then it's
31:54
going to be 1 LB of meat equivalents.
31:57
Then it's going to be 1 LB of Impossible burger meat.
31:59
Like, you know, fake, chemically made stuff.
32:01
So like they're always changing the basket of goods in order to
32:04
fit their narrative, to fit and look like the numbers aren't as
32:07
bad as they say they are. So it's just the the corruption
32:10
of money leads to the corruption and the manipulation of
32:13
everything. There's a great quote by Jeff
32:15
Booth and all. I'll leave it on this.
32:16
If there is scarcity in money, there's abundance in everything
32:21
else. But if there's abundance in
32:23
money Fiat, then there's scarcity in everything else.
32:26
So just think about that. I know it's a great quote, but
32:27
yeah, it's just scarcity and abundance of money versus raw
32:31
materials or goods and services that you want.
32:32
So I think it's a great quote by him and I think it really
32:35
highlights the Fiat dilemma that we find ourselves in.
32:37
Yeah, I was going to say we. Don't really have to think about
32:39
it too much. We're kind of living through it
32:41
currently as we speak. There is an abundance of money
32:44
and they're, they're talking about, you know, creating even
32:47
more money and there is a lot of scarcity in things currently
32:51
playing out. So hey, I know it sounds utopian
32:54
for a lot of people what Bitcoin future might be like, but I
32:58
don't think it's utopian, man. It's just it's pure maths here.
33:00
We're going to go back to Bitcoin is math.
33:03
It's very simple. Yeah, I I got it.
33:06
All right, guys. I got to keep it moving.
33:07
The storm's going there. It's like stormy here.
33:10
And I think I got to go on the hard line.
33:11
So we're going to keep it moving here because I might, I might
33:14
get shut off real quick. Give me one second I want to
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35:11
FYI, Chris, if I get shut off, it's storming right now, OK?
35:17
It's like lightning's hitting me as we speak.
35:19
OK, Anyways, back to the show, back to the news.
35:22
So I think an interesting trend we are seeing in here, I'm going
35:27
to full screen me, give some context here.
35:30
This news in and of itself is probably not that interesting,
35:33
but it is showing that because we are seeing more regulatory
35:38
clarity, or rather more talk of regulatory clarity, you're
35:42
starting to see that the institutions are feeling a
35:45
little more comfortable around Bitcoin and now they are
35:48
starting to make their moves. And so this really leads to what
35:52
is coming down the pipeline and and that's where we'll probably
35:55
take this conversation. So U.S. bank reserves resumes
35:59
Bitcoin, cryptocurrency custody services for institutional
36:02
investment managers. So the US Bank announced today
36:06
is this today Yes Oh no, this was actually a day ago U.S. bank
36:09
announced today that it has resumed offering cryptocurrency
36:12
custody services originally announced in 2021 as an early
36:16
access program to global fund services client, the services
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are intended for institutional investment managers with
36:22
registered or private funds who seek a secure safekeeping
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clients back in 2021, and we're excited to resume the service
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36:53
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37:20
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37:23
And you know, U.S. bank 68 six, $686 billion in assets.
37:28
NYDIG is basically a Bitcoin company that just kind of got
37:32
launched a few years ago on a Wall Street.
37:35
It's backed by. Hi Chris.
37:36
You probably remember who I'm I'm.
37:38
Is it? I'm blanking on his name.
37:41
NYDIG is it Ross, Ross Stevens? I believe Ross Stevens.
37:45
Yeah, Ross Stevens, He's he's. A OG Bitcoiner, he's been around
37:48
for a while. And then I think the big take
37:52
away here is this one quote here.
37:56
Obviously we're not the biggest fans of ETFs, but hey, Wall
38:00
Street loves ETFs. We're seeing the impact that the
38:03
Black Rock ETF has made. We're seeing the impact of ETFs
38:06
in general. Again, I have this whole theory
38:08
that I think since ETFs got launched, it's fundamentally
38:12
shifted the market structure of Bitcoin and we are in a new
38:15
paradigm ever since they launched the ETFs.
38:18
But it's basically this quote right here.
38:20
Following greater regulatory clarity, we expanded our brings
38:24
to include ETFs which allow us to provide full service
38:28
solutions. Now, of course, I wouldn't be
38:30
trusting banks with my custody solutions.
38:33
Obviously, I'm not an institutional manager here.
38:36
I, I don't have a license, I, I don't run a firm or anything
38:39
like that. And of course, there are more
38:42
stringent regulations for people that do run firms, But I think
38:46
the point remains the same as we're seeing in this last year,
38:49
rather, since Trump started running for, for office and, and
38:54
coming back in as president and embracing Bitcoin, we are seeing
38:57
a shift in the regulatory landscape around Bitcoin.
39:02
And this, this seems to be a good thing.
39:06
And I, I hate to use the term net positive here, but it does
39:10
seem like since we are on the verge of seeing a, you know,
39:15
more regulatory clarity, we're, we're about to get, you know,
39:18
clear rules of the road here. All the banks are trying to get
39:22
into Bitcoin, whether that's trying to get micro strategy
39:24
exposure or whether that's trying to essentially get their
39:28
foot in the door and become a quote, crypto adjacent company
39:32
with custody or offering these services to their clients.
39:35
Of course, they want their fees, they want to make money.
39:38
But it does seem like we we are entering an era where we're no
39:42
longer going to get fought here, that since they are embracing
39:47
our industry, all the biggest players are embracing this
39:50
industry as well. Whether they want to or not is
39:53
besides the point. I think Jamie Dimon is like the
39:55
best example of this. He's like, look, I don't like
39:58
this thing, but if my customers want to buy this, I guess I will
40:02
offer it to you guys. So this could be a bending of
40:05
the knee moment where, look, they're realizing there's
40:08
something on the horizon. If we do get a sense of
40:12
regulatory clarity here, if the rules of the road are laid out
40:15
so that they can feel that they can come into Bitcoin in bulk.
40:19
I think we're we're slowly but surely just taking over the
40:22
world ever since Trump announced we are going to become the
40:25
Bitcoin superpower of the world. He is following through in terms
40:29
of whether banks can come in SEC flipping 180% on their view of
40:33
Bitcoin. And now it seems like other
40:36
banks are following suit. So again, I'm not all four banks
40:41
custodying your Bitcoin, but it just shows that they want your
40:45
Bitcoin. They want, they want a little
40:48
piece of this action. And if you've been sitting on
40:51
the sidelines and waiting for signals of maybe, you know,
40:54
now's not the right time to get into Bitcoin, We have, I think
40:57
all the signals you need to relieve you of this stress.
41:00
We have institutional managers pushing their portfolios from 1%
41:04
to 5% to Ray Dalio saying like 40% to now the banks coming into
41:08
the space and saying, yeah, we're going to custody this
41:11
stuff. We, we want to offer Bitcoin
41:13
ETFs. It seems like the big money's
41:16
here, guys. It's, it's no more, no longer
41:18
just speculation that they're here.
41:19
I think they are starting to really pivot and force into the
41:23
Bitcoin industry for better or worse.
41:25
But they, they want a little piece of the action.
41:27
So I think this is more tacit approval that Bitcoin is slowly
41:31
but surely eating away at the traditional financial system.
41:34
Anyways, Chris, from a slightly higher IQ vantage point, what's
41:40
your view on this? I think the banks want.
41:43
A piece of the action, but they want a piece of the action with
41:46
the, the institutional investors.
41:47
I think that the banks are kind of, I mean, I, I hate the, the
41:51
rules for institutional money. It's like, I think you need a
41:53
net worth of $2,000,000 or you need to have made 200,000 over
41:58
the last three years or I forgot the rules, something like that,
42:00
which is a very high bar or for most people, especially compared
42:03
to the average in the United States.
42:05
But the thing that's funny, it's like, hey, we want to help you,
42:07
but only if you're high net worth.
42:08
If you're a pleb, go fuck yourself basically.
42:12
So I do think that like they're going to roll it out for them
42:14
and their friends 1st and then when they're like, oh like now
42:16
we're going to offer you something at much higher
42:18
interest rates or much worse offerings.
42:21
So I think the best bet is to stay humble stack sacks.
42:24
We are trying to become the D banked or the unbanked.
42:26
We don't want to work with banks personally.
42:28
I mean, yeah, if they want to learn about Bitcoin, yeah, sure,
42:30
we can show you how to set up a hardware wallet and do that on
42:32
Sparrow and stuff. But if you want to learn like
42:35
like you don't have to fit into the mold of the old system.
42:38
We're trying to build a parallel, much better, much
42:40
robust system. So I definitely think the reward
42:43
will be the people that stay humble stack sacks take the
42:45
Bitcoin into cold storage and they're able to use utilize it
42:48
themselves. I want the banks come to me
42:50
being like, yo, can can we have your Bitcoin for some?
42:53
Like they're asking a loan for us bitcoiners to give us their
42:57
Bitcoin. And when I say, let me think
42:58
about that, no. And when they're like, no,
43:01
pretty please, it's like either it's going to be a very, very
43:04
small part of my stack or the interest rate that I'm going to
43:07
charge them is going to be laughable.
43:08
And when they're like, bro, what the hell, I don't want to pay.
43:11
This is like, well then you're not getting my freaking Bitcoin.
43:13
So I definitely think that's the long term play.
43:16
I'm with that. Yes, I will provide you some
43:18
Bitcoin liquidity if I'm able to charge you an arm and a leg like
43:22
you've been doing to us forever. Oh, what's credit card rates?
43:26
29%, add 20% on that and then. We'll talk 100% though You, you
43:34
did, you did say something that that I did find interesting in
43:40
regards to Yeah. They're going to do it to their
43:42
high net worth friends first and then eventually it'll get to,
43:47
you know, the average person. But why you said that?
43:50
I was just thinking, you know, if it's good enough for rich
43:52
people, it's probably good enough for me.
43:54
So I should probably be buying some Bitcoin more, you know, I
43:58
should probably be doing these things as that's kind of, that's
44:01
kind of my view of the I, I, I think it's kind of a, an
44:05
elitist, maybe an elitist perspective here.
44:07
Like, well, hey, you know, if it's good enough for rich
44:09
people, it's probably good enough for me.
44:10
So maybe I should be doing this thing too.
44:12
If the elites are the really rich, high net worth individuals
44:16
want to get into this, that signal to me that, yeah, I
44:19
should probably keep doubling down on this, tripling down on
44:22
this. It seems like we are correct on
44:23
what's going on. OK guys, let's keep it moving
44:29
'cause I, I think this end of today's show, it's Friday.
44:32
I, I kind of like this conversation a lot in regards to
44:36
what AI and Bitcoin will do and what this all means for us here.
44:41
So let's keep it moving to the end and we will wrap up today's
44:46
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freedom. All right guys, so shouts out to
46:51
rhino Bitcoin app. They clipped this and the real
46:55
significance is of course, this is a culture and it seems like
47:00
the Bitcoin signal is starting to get into bigger and bigger.
47:03
You know it actually the bugle team it has been on this.
47:07
You know Bitcoin podcasting is going to take over the world.
47:09
So if you guys don't know who this guy is, the Diary of ACEO,
47:12
he's got one of the biggest up and coming podcasts right now.
47:16
He's got 12.1 million Subs. This guy gets 53 million views a
47:20
month, which is insane. This video in itself got 1.7
47:26
million views. Obviously.
47:28
I think it's because here, if you see this, you know, AI will
47:30
trigger global collapse by 2027. You know, a hot take there a hot
47:35
take. But there was a portion in this
47:39
where this AI researcher basically is like, look, if you
47:43
want to survive this AI whatever apocalypse that people are
47:47
talking about, the only way to really do this is if you are
47:50
buying in Bitcoin. And I think the fact that
47:52
they're having this conversation on such a large platform really
47:55
just goes to show that, one, you know, a lot of people saw this
47:59
clip and now are thinking about buying Bitcoin.
48:02
And two, Bitcoin really is the solution for all the crazy stuff
48:05
that we find ourselves in. So it's a short clip.
48:08
I'm going to play it for you, and then Chris and I will chat
48:09
about it. I think.
48:10
Chris, are you a little more AI? Are you more AI savvy than me?
48:14
I'm kind of a Luddite when it comes to AI.
48:16
No, we're both Luddites. OK, AI Luddite takes on this.
48:20
Niko loves AII troll him about it all the time.
48:23
But let's watch this clip and then we'll chat about it.
48:26
Free labor. What's money?
48:28
Is it now Bitcoin? Do you invest in that?
48:30
Is there something else which becomes the only resource we
48:34
cannot fake? So those things are very
48:36
important research topics. So you're investing in Bitcoin,
48:39
aren't? You.
48:41
Yeah, because it's a. It's the only scarce resource.
48:47
Nothing else has scarcity. Everything else, if price goes
48:51
up, we'll make more. I can make as much gold as you
48:53
want given a proper price point. You cannot make more Bitcoin,
48:58
some people say. Bitcoin is just this thing on a
49:00
computer that we all agreed was valuable.
49:02
We are a thing on a computer. Remember.
49:07
OK, so I. Mean not investment advice, but
49:11
investment advice. It's hilarious how that's one of
49:13
those. Things where they tell you it's
49:15
not but you know it is immediately there is a your call
49:17
is important to us. That means your call is of 0
49:20
importance and investment is like that.
49:22
Yeah, yeah. When they say no.
49:23
Investment advice. It's definitely investment
49:25
advice, but it's not investment advice.
49:28
OK, so you're bullish on Bitcoin because it's it can't be messed
49:32
with. It is the only thing.
49:34
Which we know how much there is in the universe.
49:38
So gold. There could be an asteroid made
49:41
out of pure gold heading towards us, devoluing it.
49:45
Well, also killing all of us. But Bitcoin.
49:48
I know exactly the numbers. And even the 21 million is an
49:51
upper limit. How many are lost?
49:54
Passwords forgotten? I don't know what Satoshi is
49:56
doing with his million. It's getting scarce every day
50:00
while more and more people are trying to accumulate it.
50:04
Some people worry that it could. Be hacked with a supercomputer?
50:08
A quantum computer. Can break that algorithm.
50:11
There is strategies for switching to quantum resistant
50:15
cryptography for that. And quantum computers are still
50:18
kind of weak, do you think? There's any changes?
50:21
To my life that I should make following this conversation.
50:25
Is there anything that I should do differently the minute I walk
50:27
out of this door? I assume you already invest in.
50:30
Bitcoin heavily Yes, I'm an investor in.
50:32
Bitcoin. This is financial advice.
50:37
I love that, Ed, what should you do right when you leave this
50:41
room, go balls deep into Bitcoin?
50:44
Like, did you not hear what I just said to you?
50:47
Literally did a whole video about how AI is going to, you
50:50
know, change the fundamental nature of our world.
50:52
And he's like, the only thing that you can really do is buy
50:55
Bitcoin. So what should I do after this?
50:58
Buy more Bitcoin? Like what?
51:01
What are you talking about? Of course.
51:02
Did you not just listen to what I just said?
51:05
It's it's something about the. Slavic languages or he's
51:08
Latvian, but like that Slavic, Russian, Ukrainian accent that
51:11
just makes everything they say seem more serious and like, more
51:15
like dire, like you should like, go after this and buy more big.
51:19
Yeah. And also guys, legally.
51:20
Speaking this whole show, everything on this channel is
51:24
not financial advice. I am not your macro.
51:28
Not lawyers. Not lawyers.
51:32
Exactly, I am not your. Financial advisor, I am not your
51:35
macro advisor. I am, I am your financial
51:39
entertainment here. This is not financial advice.
51:42
But yeah, no, I mean, look, I have heard a lot of people and
51:45
again, Full disclosure, I'm not the biggest AI person, you know,
51:49
I'll use ChatGPT here like last night.
51:52
Look, I was I use ChatGPT like a a glorified Google search.
51:56
That's kind of how I look at it. I kind of compare them against
52:00
each other. I use perplexity as my search
52:02
browser. I'll use ChatGPT and I'll use
52:05
Google. And I kind of, you know, I look
52:06
for the answers and then I kind of compare what they all say.
52:10
And that leads me to the bottom. I'm not one of these people that
52:13
uses AI as like their best friend or, you know, their,
52:16
their personal therapist or something like that.
52:20
I, I'm a little more cynical. I, I have the, the Elon Musk
52:24
kind of view here where like AI is a demon and you're, you're,
52:27
you're congregating with demons, You know, hey, I'm, I'm a
52:31
superstitious 42 IQ person here, but I have seen a lot of people
52:36
hit on those two ideas. AI is, you know, they're AI is
52:40
going to take our jobs. We're all going to be out of
52:42
work or the quantum computer FUD.
52:45
And I'd just love to see someone that's in AI essentially be
52:47
like, no, dude, like, do you understand this Bitcoin thing at
52:50
all? It's the only thing we know in
52:52
the universe that we know there's what the amount is 21
52:55
million hard cap. And actually, Chris, it really
52:57
does kind of lead back to that, that quote you were saying the
53:03
what is it Jeff Booth quote that you said the abundance in?
53:06
Money means there's scarcity in resources.
53:09
If there's a scarcity in resources, there's an abundance
53:12
of money. Exactly.
53:14
And if, if we do have the access to all knowledge through AI and
53:22
everything does, you know, basically, I guess maybe I, I
53:27
don't know the whole AI Armageddon view.
53:29
Like we, we're basically worthless and we don't ever have
53:32
to do anything because AI does everything for us.
53:34
And what's the point of living? The point of living is to
53:37
acquire more Bitcoin, guys. Cuz hey, if AI is gonna give us
53:40
everything, there's only one thing that we know is truly
53:43
scarce. It's Bitcoin, 21 million hard
53:45
cap. This is the beauty of it.
53:47
This is why Bitcoin will win. So I just, I love that we are
53:51
starting to see these conversations go into, or rather
53:54
break out of our echo chambers because guys, you already know,
53:59
the only people buying Bitcoin right now are bitcoiners.
54:01
The only people talking about Bitcoin are Bitcoiners.
54:04
We're we're basically talking in a giant echo chamber, but it's
54:07
starting to break out. And once more people,
54:10
intelligent people, like you said, someone with a with a
54:13
seemingly smart sounding accent here, it does hit a little
54:17
harder. And I, I think, I think we're on
54:20
the verge of it, guys. I think we're on the verge of
54:23
the price going going hard, guys.
54:29
I, I keep getting trolled. You guys keep saying I'm a moon
54:31
boy. I am a mood boy.
54:33
I'm a moon boy and a freedom maxi.
54:34
This is who I am. I, I'm unashamed about who I am.
54:38
This is this is what I do. This is my life's work.
54:41
Moon boy, freedom maxi. That's my new title here.
54:45
Anyways, Chris, are you concerned about AI?
54:48
I kind. Of I kind of take the take that
54:50
you take Opti. I'm more of skeptical of AII
54:54
think we know there's literally movies like Terminator movies
54:57
that are literally about this with like Skynet and like it
54:59
taking over the world. I with that being said, I do
55:02
think the AIS nowadays are basically just like large Google
55:06
search engines that like are predictive and analysts like
55:09
like, so it's like the next iteration of Google search.
55:11
To your point, I think that you should be very sparing with AI.
55:14
And I know personally, I'm not smarter than a computer or a
55:17
supercomputer or anything like that, but I catch mistakes on AI
55:19
all the time. So it's like a lot of times I'm
55:21
like asking something that I vaguely know about, like, you
55:25
know, hey, like, who's this? And then they'll give me the
55:27
wrong answer. I'm like, wait, I know this is
55:28
wrong. So like, I think using AI
55:30
sparingly don't get like, don't use it as a therapist, don't use
55:33
it as a love coach. Don't use it as like a lot of
55:35
different things. But if you want to use it as a
55:36
Google search as a way to assist you, I think that's a great way.
55:39
I've also seen if you want AI to like you're like, hey, AI, write
55:42
me a paper about this. Like insert a random topic.
55:46
A lot of times it like it like starts repeating itself.
55:49
Like it's like almost like the paragraphs are the same thing,
55:51
just the words are jumbled, but saying the exact same thing over
55:54
and over again. So you can kind of tell it's
55:55
like not even really good at like writing like long form
55:58
things or stuff like that. So like if you want to use it
56:00
for selective answers and not revealing things about your
56:02
private life, I think that's the best way to do it.
56:04
I want to add two more things. So the thing about quantum
56:06
computers. So I think quantum computers and
56:09
then breaking Bitcoin is actually one of the lowest
56:11
things in terms of doing it. So imagine you're this, you're
56:14
this evil genius, you make this great quantum computer and you
56:17
can break basically encryption for anything.
56:20
That's ultimately what quantum computers can do.
56:22
So if you get the great idea, you'd be like just smart in half
56:26
by 1/2 in the sense that like if you were to start breaking
56:29
encryption and stealing Bitcoin, let's just say you wanted to
56:31
steal Satoshi's a million Bitcoin at that point.
56:35
You run the risk of well. So if you steal Satoshi's a
56:37
million Bitcoin and then you start spending him and all that,
56:39
and then you start stealing Bitcoin from other people, it's
56:41
like sand. Like Bitcoin would become
56:43
worthless overnight in the sense that until we upgrade to a
56:46
quantum resistant algorithm that people would be like, hey, like
56:49
you're stealing Bitcoin, you're breaking this.
56:51
And basically the value of it keeps dropping faster than
56:54
probably you can spend it. So it's like you're basically
56:56
hurting yourselves. You'd be much better off, and I
56:58
know that this is like the evil genius tinfoil cap on, but you'd
57:01
be much better off like basically ransoming people and
57:03
using Bitcoin as payment or for basically for like, oh, like you
57:09
broke the encryption of hydro dam, you broke the encryption of
57:13
nuclear launch codes. You broke the encryption of a
57:15
banking system and you can seal Fiat currency way easier without
57:18
them even realizing it. Like there's so much other
57:20
things that you'd probably want to do with a quantum computer
57:22
before you said let's break Bitcoin, unless I guess you're a
57:25
state actor and you don't like the competition.
57:27
So then I guess maybe that is the, the, the like the angle
57:31
there that they might break it just for the sake of breaking
57:33
it. But that being said, I do think
57:36
like there is going to become more quantum resistant
57:38
algorithms and over time, Bitcoin developers will see this
57:41
this issue. I don't think it's an issue
57:43
today, but ultimately they'll see this issue and we'll start
57:46
migrating to a new hashing algorithm that protects Bitcoin
57:49
without too much fanfare of keeping the Ledger the same,
57:51
just changing the algorithm. With that being said, AI and
57:54
Fiat currencies, I know this is a great topic that's brought up.
57:57
If AI gets to the Super intelligence and they're not
58:01
going to want to use Fiat currencies because governments
58:04
or banks or things like that can stop it or reverse transactions,
58:08
They're not going to want to use other cryptocurrencies that have
58:10
backdoors or that can be broken or that can be the rules can be
58:13
changed like Etherium. When the Dow hack and they like
58:15
literally change it and fork the code.
58:17
They're going to want to use something like Bitcoin where
58:19
they know it is a finite supply, it can't be hacked and that like
58:23
it's a use as payment that they can use without being reversed
58:26
or stopped or stolen from them. So I do think in the long run,
58:29
AIS are going to want Bitcoin as a way to pay and do things and
58:32
it even kind of works together synonymously.
58:34
Like they're like, hey, AI, like I want to buy something on
58:37
Amazon. Like you have a balance that I
58:39
gave you like a hot wallet. Basically like your AI hot
58:42
wallet, you give them a million sets, buy these items from
58:44
Amazon, go ahead and do it. And basically they're going to
58:46
be using the Bitcoin wallet in order to fund payments to Amazon
58:50
and buy the gifts or whatever it is.
58:51
But I think that's just a simple example.
58:53
But I do think that AI are going to want Bitcoin in the long term
58:57
because they realize it can't be stopped, it can't be reversed
58:59
and its final settlement and payment.
59:01
So AIS are going to want want to get your Bitcoin.
59:04
I guess the flip side of that is they might try and trick you to
59:06
steal your Bitcoin. So always be cautious and don't
59:08
get social engineer intact. But yeah, I think that's my low
59:12
IQ take on AIS. And like you said, Opti, I'm not
59:14
very big. I use chat TVT sparingly.
59:16
I don't use any of the other ones really.
59:18
And I basically use it as a Google search for here and
59:20
there. Yeah, I use it as a.
59:22
Google search Google's trash now guys Google is horrible like the
59:26
whatever whatever they did to Google where you have to search
59:30
sort of like 6 pages to get to the right results.
59:32
It's like it's horrible. I just ChatGPT it, perplexity it
59:36
and even their. AI like they're like AI
59:38
generated answer and like you'll see the AI generated answer is
59:41
like this paragraph and you're like, you literally see the next
59:43
article below. It is like different from what
59:45
they're telling you. You're like, this is dumb.
59:47
Like why you're like you can even see in the first 3 links
59:50
you showed me. This is not what you I wrote the
59:51
paragraph here, so yeah, yeah, but.
59:56
You know the meme AI is going to take all our jobs.
1:00:01
You were saying I'm going to throw myself here.
1:00:04
You were saying that all AI does is repeat itself in different
1:00:08
words. I'm like, damn, it's really
1:00:09
going to take my job. Shit, it's.
1:00:12
Over for me, man. It's over for me.
1:00:15
It's over for us. We're we're not going.
1:00:17
To do this episode, they have enough of our voice that they're
1:00:20
just going to make AI generated images of us talking and just
1:00:23
saying the same things over all right, like the the show's.
1:00:26
Over the the we're we're done for today.
1:00:28
It's Friday. But I did just see an AI
1:00:32
computer, AI video processor and it was able like you, it could
1:00:38
take a picture of you. And I think you kind of you
1:00:40
recorded a little bit and it it basically looked like this
1:00:45
recording. It's it was one of my friends.
1:00:47
He's making some content and I was watching it.
1:00:50
I'm like, wait, this isn't you recording.
1:00:52
He's like, no, that whole thing is AII was like, holy shit.
1:00:56
Like this is crazy. And I know you guys have seen
1:00:58
the AI videos on Twitter and all the commercials and you've seen
1:01:01
our AI videos and stuff, but this literally it looked like
1:01:05
they they can basically do what we're doing here and someone
1:01:08
just types in what it's doing and they will be an AI Opti and
1:01:11
AI Chris. It it was, it was insane.
1:01:14
I mean there was last. Year or like probably a year, a
1:01:17
year and a half ago there was an AI that was really good with
1:01:20
voice. I forget which one it was or
1:01:22
whatever, but basically they made a song with like Drake and
1:01:26
Jay-Z like 2 separate songs and you would like, I don't listen
1:01:30
to music that much, but like I showed it to my wife.
1:01:32
I was like yo check out this new Drake song and she like likes
1:01:34
Drake. And she was like wow, that's
1:01:36
like pretty good. I'm like this is all AI.
1:01:37
She's like no fucking way. I'm like, yeah, it's literally
1:01:39
like fake you. Wasn't that BBL?
1:01:42
Jersey Hey, look, I love, I love, Yay, yay.
1:01:49
Yay's using all kinds of AI on his stuff.
1:01:52
People hate it, but I really don't see a difference or shouts
1:01:55
out to the bugle dude, the bugle's music that that stuff's
1:01:58
super cool. That's all AI.
1:02:00
He like, doesn't know how to play an instrument, but he can
1:02:02
make some bangers. Yeah, He's like the top of.
1:02:04
Wavelength on like everything. He's like 7 of the top ten.
1:02:07
The bugle boys shouts out to the bugle.
1:02:10
Anyways guys, it is Friday. Oh wait actually one last thing.
1:02:14
I almost forgot again one last thing I got you guys I I didn't
1:02:17
forget. I didn't forget.
1:02:18
Let me log in here I am giving away some free Bitcoin right now
1:02:23
Make sure you guys pull out your lightning wallets.
1:02:26
Let me just log in. Hopefully this this doesn't
1:02:30
freeze out on me. Actually it is Friday, so I'm
1:02:33
going to give you guys we're going to do 1 spin here.
1:02:36
So you sign in once you you know, if you scan our QR code
1:02:41
earlier here, actually I'll do it again and you scan this QR
1:02:43
code, you got three chances to win a million SAT.
1:02:46
When you buy Bitcoin, you get more wishing well points.
1:02:48
When you refer people, you get more points and more chances to
1:02:51
win a million SAT Twitch is what about $1000 right now in
1:02:55
Bitcoin. That's a it's a good little nest
1:02:57
egg to start. So here we go we're going to
1:02:59
play and the drum roll, please drum roll in your head as we
1:03:05
wait for it to go first one to scan with the lightning wallets
1:03:08
get 608 SAT. So give it some free Bitcoin.
1:03:12
And someone did say earlier, how many unclaimed sats do we have?
1:03:18
I don't know if they were talking about us, but it's
1:03:19
Friday. So let's see if there's
1:03:21
unclaimed sats in here and we'll do essentially a second one.
1:03:26
So unclaimed sats, this takes a little bit.
1:03:29
This takes a moment. Anyways, guys, we appreciate
1:03:31
you. We love you guys.
1:03:33
We wouldn't be here without you. There we go, 446.
1:03:37
So it's the same person got these sats.
1:03:39
It's 1000 sats on today's show. Don't say I didn't do nothing
1:03:43
for you guys. No, I'm trolling.
1:03:45
I'm trolling. I love you guys appreciate you
1:03:47
guys. It's Friday, go outside, touch
1:03:50
some grass, get some sun guys. I'm I'm really big on the jet
1:03:53
cruise sun stuff. I'm sun maxing.
1:03:56
So right when you wake up in the morning, 1015 minutes of sun,
1:04:00
your life will get better. Though I think I'm drinking too
1:04:03
much caffeine because I'm still not sleeping like I, my, my
1:04:06
circadian rhythms aren't aligned yet.
1:04:08
I'm still not going to bed until about after midnight because I
1:04:13
drink like I did the math yesterday.
1:04:14
I drink like 700 milligrams of caffeine on average a day.
1:04:20
It's insane. My, my heart's going to explode
1:04:22
on me. Anyways, call your loved ones,
1:04:25
eat a good eat, eat some good food, guys.
1:04:26
I'm going to cook a steak this week anyways, Chris, good to see
1:04:30
you, man. Always good to see you man.
1:04:32
And I will see you soon. And yes, guys, don't date your
1:04:35
AI. Last final message, do not do
1:04:39
not date Elon's AIE girl. But super.
1:04:43
Cycle Steve OB says AI girlfriends don't nag you.
1:04:47
Also true SO. All right, guys.
1:04:53
We love you actually. Actually, next week, guys, I'm
1:04:57
going to be holding down the Fort.
1:04:58
Nico is on a trip to Paraguay. We have some things cooking for
1:05:03
you, but you stuck with me all week guys, so I'll see you on
1:05:07
the flip side. Have a good weekend.
1:05:10
See you on Monday. Peace out.
1:05:12
Peace out. Today's.
1:05:13
Episode was brought. To you by bitcoinwell.com, a
1:05:16
Bitcoin only platform on a mission to enable financial
1:05:19
independence.