Latest / Simply Bitcoin / $3.7T Bank CONFIRMS Bitcoin Should Be $165k TODAY!! | EP 1345

Transcript

$3.7T Bank CONFIRMS Bitcoin Should Be $165k TODAY!! | EP 1345 · Simply Bitcoin

• 0:00
  One of the world's largest banks just confirmed that Bitcoin
• 0:04
  should be $165,000 today. But they're not alone.
• 0:09
  Citibank, another multi trillion dollar bank, is also getting
• 0:13
  vocal about their 12 month Bitcoin prediction.
• 0:16
  But before we get into all that, let's dive into what Bloomberg
• 0:20
  said yesterday about Bitcoin's next 30 days.
• 0:24
  Just a quick check on crypto prices as we begin the so-called
• 0:28
  months of October, October with strong gains.
• 0:32
  Creators are batting of a rebound after one of the
• 0:35
  harshest sell offs in months. Crypto currencies shed roughly
• 0:38
  $300 billion last week as a wave of leverage bets unravel.
• 0:43
  But things may be looking at this month, with Bitcoin ending
• 0:47
  in the green in the last 6 Octobers.
• 0:50
  All right guys, so you heard it here first.
• 0:53
  I actually me and Kent were talking about it before shouts
• 0:56
  out the can. Of course, you guys know him
• 0:57
  from size mining, but we were literally just joking about this
• 1:01
  before the show is like, are we still in the minority here or
• 1:06
  now that we have Bloomberg and mainstream media catching on to
• 1:08
  Q4 memes starting to make me feel a little bit of uneasy
• 1:12
  about it and that me and Kent were joking about that.
• 1:14
  So who knows, we'll see what happens here.
• 1:17
  But Kent, thanks for showing up today.
• 1:18
  And Nika, Nika is not here, guys.
• 1:21
  As you can tell, he's, he's actually at a doctor's
• 1:23
  appointment again. He's, he's healthy.
• 1:25
  He's, he's still with us for a while.
• 1:27
  Anyways, I do want to chat about JP Morgan.
• 1:31
  So actually let me full screen myself a little bit.
• 1:33
  If you guys know, if you've been here with us this whole year,
• 1:37
  you've seen the pivot that Jamie Dimon and JP Morgan have taken
• 1:41
  very quickly in the last couple of months.
• 1:44
  Jamie Dimon has been historically one of Bitcoin's
• 1:47
  biggest critics. He fought Bitcoin, which said it
• 1:50
  was just for criminals and money launderers.
• 1:52
  And then slowly but surely, of course, since the Trump
• 1:55
  administration came in and embraced Bitcoin, he started to
• 1:58
  change his tune and essentially say, hey, if my clients want to
• 2:01
  buy this thing, then I'm going to allow them to buy it.
• 2:03
  I'm an American, etcetera, etcetera, etcetera.
• 2:06
  And recently he has, or rather I'm not going to say Jamie Dimon
• 2:10
  himself, but JP Morgan, the institution he runs, they have
• 2:13
  been coming out very pro Bitcoin.
• 2:16
  And this new prediction is a similar prediction we have heard
• 2:20
  come out of Jamie Dimon in the last couple of weeks.
• 2:23
  But they added a couple of of mass here.
• 2:25
  They they got some math to back this up and it really hinges on
• 2:29
  what gold is doing. So gold did pull back a little
• 2:32
  bit this morning. But as I've been covering for
• 2:34
  you guys on the show, what we're seeing in gold is telling us a
• 2:38
  lot about what's going on in the market.
• 2:39
  The investors out there, the market is looking towards hard
• 2:44
  currencies right now because they're understanding, or rather
• 2:47
  they're looking at treasuries and they're just don't think of
• 2:50
  it as a good investment. So Matthew Siegel actually
• 2:54
  quoted this and he goes, JP Morgan says the Bitcoin is
• 2:57
  undervalued versus gold and highlights a quote significant
• 3:00
  upside to 165 K. And this is where the me and it
• 3:05
  does get a little mathy here, but you know, the, the, the
• 3:07
  short of it is Bitcoin is probably going up very quickly,
• 3:11
  a lot faster than maybe we even think it will.
• 3:13
  And it goes quote The steep rise in the gold price over the past
• 3:17
  month has made Bitcoin more attractive to investors relative
• 3:20
  to gold, especially as the Bitcoin to gold volatility ratio
• 3:24
  keeps drifting lower to below 2, which is one of the big
• 3:28
  critiques of Bitcoin. It's too volatile, bro.
• 3:31
  Like, yeah, you know, for you crazy young guys going all in on
• 3:36
  Bitcoin seems reasonable. But for a more trad fi investor,
• 3:39
  for a more conservative investor, it's still too
• 3:42
  volatile for most people, even though the volatility on Bitcoin
• 3:45
  has been going down. And historically gold, you know,
• 3:49
  is you can consider it volatile, though it's it's generally
• 3:52
  considered more of a safe conservative store value.
• 3:56
  So by taking into account this volatility ratio, which implies
• 3:59
  that Bitcoin currently consumes 1.85 times more risk capital
• 4:03
  than gold, then mechanic the market cap of Bitcoin at 2.3
• 4:07
  trillion currently would have to rise by close to.
• 5:11
  You you guys there did I accidentally just take over the
• 5:14
  show? I see the chat log here.
• 5:17
  I don't I don't think that this was anticipated and if I am if
• 5:23
  I'm here then then this was going to get very interesting
• 5:26
  very fast. They did not pay me enough to to
• 5:28
  run simply Bitcoin today. I was supposed to be the
• 5:30
  sidekick, all right, I'm not seeing any I'm not seeing any
• 5:36
  comments. So I'm I'm assuming I am not
• 5:39
  here. I am the show.
• 5:44
  My God, they didn't pay me enough to do this today.
• 5:47
  All right, guys, so ask me questions about SAS mining.
• 5:51
  I, this is total an improv act at this point and I know we were
• 5:56
  going to talk a little bit about Jamie Dimon and then we were
• 6:02
  going to talk a little bit about SAS mining at some point.
• 6:04
  So where will Bitcoin be by Christmas?
• 6:06
  All right, I'm going to tell you guys what I think is going on
• 6:09
  right now with Bitcoin. My base case has shifted.
• 6:13
  So I am and I, that's what I'm making business decisions around
• 6:17
  for SAS mining. But I am banking on the four
• 6:21
  year cycle being broken and we go into at least the first half
• 6:25
  of next year, possibly second-half of next year.
• 6:28
  What that means is for me, the next quarter is going to be, I
• 6:33
  don't know, in around 150 K ish. I think we're up and to the
• 6:36
  right in a very boring sort of way until tradfy degeneracy hits
• 6:40
  a, a, a full, a full throated fever pitch.
• 6:44
  Which I mean, I think I'm seeing early indicators of that, right?
• 6:47
  Like I think what was it Opti told me before the show that
• 6:50
  Strike is now going to trade on Robin Hood.
• 6:54
  To me, that's the the first hints of a tradfy degeneracy
• 6:59
  cycle playing out. So let's see, let's see how that
• 7:03
  actually rolls. But you know, I could be wrong.
• 7:07
  Like the way I look at these things is it's not black and
• 7:09
  white, it's not binary, It's a, it's a probabilities based
• 7:12
  situation. And there's still odds that we
• 7:15
  get a blow off top here in the fourth quarter.
• 7:16
  But until you see euphoria in the markets, I don't believe we
• 7:21
  could have a substantive pull back more than 20 to 30%.
• 7:25
  So euphoria equals bigger pull back and that would mark closer
• 7:29
  to the end of a cycle. I just don't see that happen
• 7:31
  this quarter. So SAS mining, all right, you
• 7:34
  guys want to know what's going on with SAS mining?
• 7:36
  So what's going on with SAS mining is we are helping folks
• 7:40
  stack stats like Satoshi up until 2013.
• 7:45
  The era of the ASIC and Coinbase happened in 2013 and we shifted
• 7:52
  our behavior as buyers of Bitcoin up until then.
• 7:55
  If you ran a node, you were mining at the same time, or at
• 7:59
  least it was a little check box so you could check and start
• 8:01
  getting, you know, 5025 Bitcoin at a clip for successfully
• 8:06
  landed a block. And then 20/12/2013 that all
• 8:10
  changed with A6 and Coinbase making it easy to buy instead of
• 8:15
  mine. And as a result, we are as a
• 8:18
  community of Bitcoiners acquiring Bitcoin, not the way
• 8:23
  that the network was designed. Satoshi designed the network to
• 8:26
  distribute Bitcoin through mining it.
• 8:28
  And it is my firmly held belief that we are suffering the
• 8:33
  consequences of that because the majority of the hash rate on the
• 8:37
  network is there to acquire Bitcoin through acquire Fiat and
• 8:43
  using Bitcoin as a proxy to do it right.
• 8:45
  You're publicly traded company, you got a fiduciary
• 8:47
  responsibility to return dollars to your investors.
• 8:51
  You don't have a fiduciary, a responsibility to return Bitcoin
• 8:54
  to your investors, right? So by default, you're, you're
• 8:56
  there to get Bitcoin and use that as a proxy for Fiat.
• 9:00
  So what does that mean? SAS mining is coming along and,
• 9:02
  and challenging the status quo for how you guys are getting
• 9:06
  your Bitcoin right? And what that means is we just
• 9:09
  launched our fourth data center. We operate on 4 continents now,
• 9:13
  North America, South America, Europe and now Africa.
• 9:18
  We've just launched a fourth data center there.
• 9:21
  Our clients are already hashing. Our first clients are, we just
• 9:24
  launched the offering last week and the energy cost to mine a
• 9:27
  Bitcoin there is around 50K. Yes, I said that right.
• 9:32
  That is, the energy cost to build out a Bitcoin position is
• 9:38
  about 50K of Bitcoin. And that sounds crazy.
• 9:40
  It shocks most bitcoiners to hear that, but it's simply
• 9:43
  taken. How much does it cost to run my
• 9:45
  mining rig and how many stats do I get doing division on that?
• 9:47
  And you get to see your energy cost of a Bitcoin.
• 9:50
  So pretty cool. You can DCA through energy at a
• 9:54
  lower cost than stacking via any exchange.
• 9:57
  And it's just better Bitcoin because not only do you get it
• 10:00
  at a lower price, some more stats for your buck, but also
• 10:05
  you can do that outside of the banking surveillance state,
• 10:08
  right? All the stats that you receive
• 10:11
  are directly off the network. So nobody gets to see who has
• 10:15
  those. Well, I shouldn't say nobody.
• 10:17
  We do require a name, phone number, and e-mail, but you
• 10:20
  choose what those are. We don't require any personal
• 10:24
  identifying information. We just need to be able to
• 10:26
  communicate with our customers. That's it.
• 10:28
  So you go to our website, you buy a mining rig, we get you a
• 10:32
  hashing in under 7 days. We do that with an innovative
• 10:36
  process kind of first in the industry that's done it and we
• 10:40
  because it takes about 40 days to get a mining rig shipped
• 10:42
  there. What we're doing is we're using
• 10:44
  a virtual mining rig process to get people hashing quicker.
• 10:48
  That way they don't have to wait the 40 days because we knew that
• 10:50
  was a pain point. I think you're back.
• 10:53
  I can stop shelling SASS mining. Sorry guys, dude, they literally
• 10:57
  unplugged the the Internet in the house.
• 10:59
  They're they're doing construction and they, they
• 11:01
  forgot about me over here. OK, man, I I'm sorry about that,
• 11:06
  guys. We do it live.
• 11:10
  We do it live. All right, we're back.
• 11:11
  Yeah. The Internet, they literally
• 11:13
  unplugged me and I've been trying to get on back.
• 11:16
  I'm like, what is going on? OK, let me see.
• 11:19
  Yeah. Culture first, apparently,
• 11:21
  culture first. So not, not to cut you off here,
• 11:24
  Kent, but let let's let me let me just RIP through this then,
• 11:29
  because I where where was I last did did we did we talk?
• 11:33
  We did I get this part through at the very least?
• 11:36
  No, you were just. Starting on it.
• 11:38
  Oh my God. No, no, no, not actually.
• 11:40
  Not quite, because you read most of the tweet.
• 11:42
  We didn't look at the chart yet. OK, OK.
• 11:44
  So here we go. We'll we'll zoom in here on the
• 11:46
  chart. And essentially what this chart
• 11:48
  is telling you guys is the difference between Bitcoin price
• 11:52
  and gold volatility. And of course, they're they're
• 11:55
  adjusted here, so they're comparing it and this is
• 11:58
  starting to look like a better investment for people that are a
• 12:02
  lot more conservative on Bitcoin, or rather a more
• 12:05
  conservative investing in gold. And it's starting to look like a
• 12:09
  very attractive investment thesis.
• 12:11
  Of course, to us, it's much more than an investment.
• 12:14
  We consider it the best money period.
• 12:16
  But if you are looking at what goes on in hard money and hard
• 12:20
  currencies, then you're obviously very familiar with
• 12:23
  what gold does. And now we're starting to see
• 12:26
  the biggest banks in the world. And it's not just JP Morgan.
• 12:29
  We have Citigroup also doing something very similar, which
• 12:33
  is, you know, predicting that the Bitcoin price might be doing
• 12:37
  something different now. Now, guys, forgive the headline
• 12:40
  here. This is coming from Reuters.
• 12:42
  And we we, we know we're not the biggest fan of Reuters, but
• 12:45
  looks like Citigroup is being a little more bullish on shit
• 12:48
  coins and they aren't necessarily on Bitcoin.
• 12:51
  So don't let the headline mislead you here.
• 12:53
  The headline from Reuters is city lifts lifts their ether
• 12:56
  outlook Boo and trims their Bitcoin view as investor flow
• 13:01
  shift. Now, I think this headline is
• 13:02
  completely missing the mark, but there is something very
• 13:06
  interesting about what they are predicting here.
• 13:09
  So Citigroup or the Wall Street brokerage targets 133K in
• 13:14
  Bitcoin, a roughly 12% upside. So from this kind of reading, it
• 13:19
  does look like they're saying 133 by end of year.
• 13:22
  Now for us Bitcoiners were like, dude, what, 12% end of year?
• 13:26
  Like they really don't know what October means, do they?
• 13:29
  They don't understand how bullish Q4 is.
• 13:31
  But the interesting part here is that Citi sees a continued
• 13:35
  upside next year with a 12 month target of 180, $1000 Bitcoin.
• 13:42
  And this is where Kent and I were having this conversation
• 13:46
  before the show of whether we are going to see the end of the
• 13:51
  four year cycle. And I think that's kind of the
• 13:53
  new meme that we're all talking about.
• 13:54
  We're all wondering because we've seen such a late delay in
• 13:58
  the Bitcoin bull run, does that mean we're going to be pumping
• 14:01
  into 2026? And if we do pump very, I don't
• 14:05
  know considerably in 2026, then I would also believe this is
• 14:10
  fundamentally breaking the four year cycle thesis.
• 14:13
  And I think we can really attribute this to the fact that
• 14:17
  there is a new investor in the space and that is more of a trad
• 14:20
  fi long term view investor. So we're going to see what
• 14:24
  happens with Q4. I know everyone's looking at
• 14:26
  what's happening to the price. We are at roughly 120K right
• 14:30
  now. We've literally already had as
• 14:33
  much games that we had in all of September.
• 14:36
  So October is starting very strong.
• 14:38
  I'm feeling really good about this, except for, as I kind of
• 14:41
  posited earlier, that maybe because everyone thinks October
• 14:46
  is going up, maybe because Bloomberg saying October, we
• 14:50
  might not be seeing it, guys. They might be ruining the mean
• 14:53
  magic. So again, forgive me for the
• 14:56
  Internet. It was out of my hands
• 14:57
  completely. But Ken, I'm going to throw you
• 15:00
  the question. I know we were talking about
• 15:03
  this before the show, but your thesis is your working thesis is
• 15:08
  that the four year cycle is over.
• 15:11
  Yeah, and I, and I hate to tell you this, but I scooped myself
• 15:14
  on this thesis because I I knew I, you know, you threw me out to
• 15:19
  the wolves, bro. You suddenly cut off I.
• 15:21
  Didn't even. Do that.
• 15:22
  So I started to talk about this, but yeah, just a quick, quick
• 15:25
  run back on it is had. My base case at this point is
• 15:30
  that we're going six months out into next year before we hit
• 15:33
  peak euphoria. And I think it's stratified
• 15:36
  degeneracy that leads us there. And that's my that's my base
• 15:40
  case. But my base case is also very
• 15:42
  subject to being wrong. It's a loosely held opinion
• 15:45
  because this is a big deal to break the four year price cycle
• 15:49
  and and the euphoria blow off top could still happen here in
• 15:53
  the fourth quarter. I just don't see it.
• 15:56
  I do still see the the retail coming in.
• 15:58
  It feels too late in the cycle for it to happen now.
• 16:00
  But you know, a lot better men than me have been wrong before.
• 16:04
  So I'm, I'm not, I'm not holding out totally, but I do have to
• 16:07
  make decisions for SAS mining and I am building my
• 16:11
  expectations around going through June of next year before
• 16:15
  we hit a real cycle peak. Wow, incredible.
• 16:19
  See, we're maybe we're a little more conservative than at SAS
• 16:23
  Mining because our thesis for the last year or two is we're
• 16:26
  probably going to see a 2026 bear market.
• 16:28
  And so we've like our whole business plan and everything
• 16:32
  we're doing is kind of preparing for the worst case scenario.
• 16:36
  Obviously we would love to see a 2026, you know, pump all the way
• 16:41
  into Q2 that would that would make our jobs here as I like
• 16:45
  running a business a lot easier. But yeah, we've been working on
• 16:49
  the thesis that 2026 is probably going to continue to be a bear
• 16:53
  market. Just it's hard to kind of break
• 16:55
  out of old patterns, especially if we've been in Bitcoin for a
• 16:59
  while. Like I think building a
• 17:01
  business, you do have to take a little more of the conservative
• 17:05
  view here. So I'm, look, I'm applauding
• 17:07
  you, Kent, over there being like, Nah, we're pumping into
• 17:09
  2026 and everything we're doing is planned like it's going to
• 17:13
  pump into 2026. So, man, you're a braver man
• 17:16
  than we are. Well, like by plan it means,
• 17:20
  hey, am I gonna get out over my skis and do something stupid?
• 17:24
  No, that's not what I mean. I'm just saying for, for based
• 17:29
  on like sales and growth expectations, I'm expecting a
• 17:33
  continue up into the right. I mean, we haven't had a
• 17:36
  marketing budget until just a few months ago and that's not
• 17:38
  going to change. I'm, I'm growing the business
• 17:40
  profitably and have been the last couple of years because
• 17:43
  it's been a difficult business to find investors for.
• 17:46
  A lot of people want to mine and get the Bitcoin, but investing
• 17:49
  in a platform that delivers mining to the masses has been a
• 17:53
  difficult thing for people to get their heads wrapped around.
• 17:55
  And as a result, you know, I'm not going to spend any more than
• 17:57
  I have. That's, that's not, that's not
• 17:59
  what I'm saying, but in my mind and the decisions that I'm
• 18:03
  making for the various projects that we're building to deliver
• 18:07
  to customers and our hiring plans are being based on the
• 18:11
  fact that we're not going to see a cycle top until you know, mid
• 18:14
  next year. Love it.
• 18:16
  And I, I'm guessing and I, I can't remember, you've been on
• 18:19
  the show a lot, but I vaguely remember you saying that you
• 18:22
  don't do price predictions. But what do you think about JP
• 18:25
  Morgan and Citigroup's predictions here?
• 18:27
  You know, once it should be 165 today, undervalued against gold,
• 18:31
  potentially close to like A200K within the next 12 months.
• 18:36
  You think that's a a conservative bet of where we're
• 18:39
  going? Yeah, I, I think so.
• 18:42
  I mean, I think we're going to get I, I do track price.
• 18:46
  I don't like to think too much too far out in advance.
• 18:50
  The way that I'm currently seeing it here is I think we'll
• 18:53
  see our first real test and market sentiment when we
• 18:55
  challenge the previous all time. I have 124K, you know, if, if we
• 18:59
  have a pull back there that could say a double top and then
• 19:03
  we could take a little bit longer to break out.
• 19:05
  If we break out right through it, I think that signals a
• 19:08
  different set of circumstances. So I'm kind of, you know, level
• 19:10
  to level here. Let's see what happens at 124K.
• 19:13
  But my sort of base case is about in the year 150 a 170 at
• 19:20
  the most here. And I think, you know, one thing
• 19:24
  that's important if you haven't been around Bitcoin very long,
• 19:27
  and this is my third cycle, is to actually reflect on the
• 19:30
  percentage differences in previous cycles.
• 19:32
  So my first was a 20/16/2017 cycle.
• 19:35
  And most people forget that about three weeks before it hit
• 19:39
  20K, it was a 10K, right? Like we're talking massive
• 19:43
  moves. So to do an equivalent thing
• 19:45
  here to where it like, you know, my my biological synapses were
• 19:50
  trained with would mean that we need to go from 120K here to
• 19:53
  2:50. And I just don't see that
• 19:56
  happening by the end of the year.
• 19:57
  That seems crazy talk to me. But you know again, better men
• 20:00
  than me have been wrong. Yeah, I was telling you, I saw a
• 20:04
  tweet yesterday and it said something on the lines of if the
• 20:09
  price follows what we've been seeing for the first two days.
• 20:13
  Obviously it's two days in October and everyone's feeling
• 20:16
  very bullish. We responded from what one O 8
• 20:19
  to now 119, so 10K in two days like it feels good.
• 20:23
  I think we're all we're all starting to feel some life back
• 20:26
  into us. But it was saying something on
• 20:28
  the lines of, and you guys can Fact Check me here in the chat,
• 20:31
  but it was saying if Bitcoin price move 2% for the next 30
• 20:35
  days, then that's very easily above 200K in no time.
• 20:39
  And A2 percent move is not that big in, in you know, the context
• 20:45
  of Bitcoin though, like you are saying, you know, from $100,000
• 20:50
  to $200,000. Yes, on a percentage kind of
• 20:53
  timetable, it looks very similar to what Bitcoin has done in the
• 20:55
  past, but that will take a lot more capital this time around to
• 20:59
  really move the market. And like I said before the show,
• 21:03
  Kent and I were kind of trolling a little bit.
• 21:05
  We're like, man, I would just, I'd be OK with just 140K by the
• 21:08
  end of October at this point. Just like a little bit of
• 21:11
  something is better than the stable coin that Bitcoin has
• 21:15
  become in the 1st 10 months of this year.
• 21:17
  So, you know, maybe, maybe we're just we're not, we're not fully
• 21:22
  bull tarted yet. Guys.
• 21:23
  I was, I was talking with Luke earlier and it's like, yo, if
• 21:25
  the price breaks 124K convincingly, like I'm going to
• 21:28
  be more bullish than I've ever been on this show before.
• 21:31
  It's like finally we're in price discovery mode.
• 21:33
  We're back. It's everything seems to be back
• 21:36
  in, you know, the normal kind of train that we are familiar with.
• 21:41
  But yeah, I, I, I also kind of agree with what you're saying
• 21:44
  Like 140150K end of October sounds great to me.
• 21:49
  Maybe push it a little higher up in or November.
• 21:52
  And if we do continue to pump, I have been saying for a while, it
• 21:56
  does feel that now since the price isn't being moved by
• 22:01
  retail, I'm also kind of betting that we are going to pump into
• 22:06
  about Q2 of next year. It just, it makes a lot more
• 22:09
  sense right now that that is the trajectory that we're going on
• 22:13
  versus retail where when we get a blow off top, they're, you
• 22:16
  know, scared they dump their coin or as the new person, the
• 22:20
  institution coming into Bitcoin, they seem to be acquiring
• 22:23
  Bitcoin for the long term. And if that's the case and we
• 22:26
  have this infinite bid going, I think pumping into Q2 of next
• 22:30
  year, it's totally on the table. It's a non zero chance of that
• 22:34
  happening. Yeah, yeah, No, we, we're
• 22:37
  definitely not in Kansas anymore.
• 22:38
  Toto. It's it's, it's, it's a new,
• 22:41
  it's a new reality. Triadfy has proven that to me.
• 22:44
  And I, I still think though, that absolute scarcity is
• 22:48
  something that I think only Bitcoiners that have been around
• 22:51
  for more than a cycle can really kind of start to get their heads
• 22:55
  around. Like we literally cannot make
• 22:57
  any more Bitcoin. The only way to make Bitcoin in
• 23:00
  the 1st place is through mining it.
• 23:02
  So yeah, hop on board if you want to, if you want to get on
• 23:05
  the, the Bitcoin printer train. But the, the reality is we're
• 23:09
  constrained by this 21 million like that is it like no more can
• 23:12
  be produced like we've never had that before.
• 23:15
  And I think that simple fact of absolute digitally electricity
• 23:20
  enforced scarcity is escapes the, the minds of the average
• 23:25
  person and traffic is going to come in and they're going to
• 23:28
  blow themselves up. That's, that's been my running
• 23:30
  thesis for a very long time. And I think we're starting to
• 23:33
  see some early stages of that. But until we start to see
• 23:36
  euphoria, some serious price movement in the market, like
• 23:40
  we're just going to be institutions are going to be
• 23:42
  buying and then hedging out, slow up and down, slow up and
• 23:45
  down until that starts to break. I don't I don't see that the
• 23:48
  cycle ending. Yeah, I I kind of agree with
• 23:51
  that though. You brought up Euphoria Canton.
• 23:54
  We were, we were covering the Wall Street CHEAT SHEET
• 23:57
  psychology chart yesterday. What do you think we are in the
• 24:00
  cycle? Do you think we have left?
• 24:02
  Do you need me to pull it up? Do you remember the the
• 24:04
  different kind of stages of the Wall Street CHEAT SHEET 'cause I
• 24:08
  well pull. It up for some of your guests
• 24:10
  that probably also forgot man. OK, 'cause you know, we, we were
• 24:14
  speculating on it yesterday 'cause Nico and I had this
• 24:18
  conversation Wednes, no Tuesday, sorry, Tuesday.
• 24:22
  And we were like, where are we on this cycle here?
• 24:28
  So here's a chart. Or maybe I need to get a better
• 24:30
  one. Hold on, let me get a better
• 24:32
  one. This one seems a little blurry.
• 24:34
  Yeah, it's a little pixelated there.
• 24:35
  All right, this one, this one works better.
• 24:38
  OK, so and let me zoom in a little bit.
• 24:42
  I was kind of making the case. Where are we?
• 24:45
  Where are we? I think, I think we are like
• 24:48
  we've been in disbelief for a while, just on a gut check, you
• 24:52
  know, on a gut level here on the show, we've been not thinking
• 24:56
  it's going to pump. And then for the last couple of
• 24:58
  months we've been in this like hope, you know, recovery is
• 25:01
  possible phase where we're just thinking like, I, I hope it
• 25:04
  starts pumping. I, I really hope it's going to
• 25:05
  go up. And so I think we're we're kind
• 25:08
  of entering into the optimism stage here.
• 25:11
  Like I know that I'm looking at the price and I'm, I'm still
• 25:15
  doing the same thing as you. Like once we break all time
• 25:17
  high, then I will go into, oh, this pump is real.
• 25:21
  So that's kind of where I think we are.
• 25:23
  We are probably leaving the hope and going into the optimism
• 25:26
  phase, but we definitely haven't seen any form of euphoria yet.
• 25:29
  So, you know, as trying to temper my my confirmation here,
• 25:34
  my biases here can't what where do you think we are?
• 25:37
  Do you do you think my my instinctual gut level is right
• 25:41
  here or would you something different?
• 25:44
  I think we're between the the I and the M of optimism.
• 25:48
  OK, and and wait, which I the first?
• 25:52
  Oh yeah, I really confused. You there the second I the
• 25:55
  second M OK yeah, no, I'm about where you are.
• 25:58
  I that's that's my read on it Third cycle.
• 26:01
  I kind of yeah, it kind of feels like, oh, this last pullback
• 26:04
  that we went through in September, God, it couldn't be
• 26:06
  over yet is kind of the vibe that I get and then, OK, now
• 26:11
  we'll come back to 124 Ki think that breaking that out is the
• 26:15
  beginning of like some serious optimism is is kind of where
• 26:19
  I'm. I'm thinking and I could also
• 26:22
  see the stretching out. You know, you kind of see that
• 26:24
  like that block there where it's going sideways and down and
• 26:27
  sideways. So I don't.
• 26:28
  Know I'll zoom in a little more for people.
• 26:31
  Yeah, I want to I think I'd I think I'd argue this.
• 26:34
  I think you're completely right between the M and the I right
• 26:38
  here that looks pretty pretty like that's where that's what
• 26:45
  the price is doing to me as well.
• 26:47
  So if the if Kent is correct here, it looks like we'll
• 26:52
  probably break out of all time high kind of consolidate on it,
• 26:56
  maybe one more dip a couple, you know, a little dip and then it's
• 27:00
  really take off. So I don't know I'm I was kind
• 27:02
  of hoping we already got a dip. I was hoping we've already seen
• 27:05
  the last dip so who knows. The dips just keep coming,
• 27:09
  brother. Wait, wait, someone said we
• 27:11
  spent all that time denying a cycle and the chart is a cycle.
• 27:14
  It's true, it's true. It's true except for, you know,
• 27:17
  we'll cut this off. It'll be like anxiety is no
• 27:20
  more. So we we can just cut this off
• 27:23
  at euphoria to complacency. And then it goes back into
• 27:27
  disbelief and hope and optimism. So this is the new cycle, guys.
• 27:30
  It's just going to stairway up and no more and no more dumping.
• 27:35
  Well, let me, let me, let me just say for me, it's not that
• 27:38
  there's a cycle that's dead. I think that humans are humans,
• 27:41
  right? To me, a four year cycle is
• 27:43
  what's changed. And so that whole chart, instead
• 27:45
  of that being compressed into a four year, it's now stretching
• 27:48
  itself out. And I don't know what that means
• 27:50
  for the future, but I, I still see a euphoria phase is going to
• 27:53
  happen. It's just when.
• 27:55
  And my base case for that is, you know, Q2 next year at this
• 27:59
  point, maybe stretching further. It really just depends on on and
• 28:03
  when we start to see an actual euphoria phase build.
• 28:07
  That's what I'm looking for more than anything.
• 28:08
  That's my indicator. Yeah, I love that.
• 28:11
  I love that. I mean, I've been, I've been
• 28:14
  trolling with Luke off air a lot.
• 28:17
  And you guys know my my sentiment is change on air as
• 28:20
  well where I was definitely one of those like the price doesn't
• 28:23
  matter about Bitcoin. And then as we've gone sideways
• 28:26
  for so long, I realized how important the price actually is.
• 28:29
  It's like if number doesn't go up continuously, then this whole
• 28:34
  Bitcoin thing isn't what we thought it was.
• 28:37
  And so I know everyone likes to say all the price isn't
• 28:39
  important. I'm like, no guys, the price of
• 28:41
  Bitcoin is probably the most important thing about it because
• 28:44
  it does tell us a lot about what's going on in the market
• 28:47
  and where the trajectory of this thing is going.
• 28:49
  Obviously there's other features that we love, the censorship
• 28:52
  resistant, permissionless nature of Bitcoin, you know, open 24/7
• 28:56
  trading, all that stuff. Just the most liquid market
• 29:00
  period. But the 21 million hard cap is
• 29:03
  the centerpiece of this. And if it doesn't continue to
• 29:06
  climb upwards, then it's either, you know, people just don't care
• 29:11
  about hard money and they don't realize that this is going to
• 29:14
  benefit their lives. Or maybe there's some form of,
• 29:18
  you know, re hypothecation that is really going to hurt us.
• 29:21
  So there's still a lot of questions up in the air, but it
• 29:24
  does feel good to see a little bit of price action.
• 29:28
  It does feel good to see some life back in the price.
• 29:30
  I'll tell you guys that much. It's we might be entering into
• 29:34
  wake up every morning and the price is going up phase of the
• 29:37
  cycle, which is something we haven't seen in a long time.
• 29:41
  From from your lips to God's ears.
• 29:45
  Love it, love it. All right guys, so I'm gonna
• 29:48
  keep this one a little shorter than usual.
• 29:50
  We're actually going, actually we're going way longer because I
• 29:53
  was off for 5 minutes. But I want to remind you guys to
• 29:57
  of course, smash the like button, comment on the show,
• 30:00
  tell us what you think about the show and definitely subscribe.
• 30:02
  We dropped the most content, the best content on YouTube and I
• 30:06
  have a jam packed show for you guys.
• 30:07
  So Kent earlier said that we haven't seen retail.
• 30:10
  Well, it looks like we might be on the verge of seeing some new
• 30:15
  retail here. Robin Hood launched some of us
• 30:18
  new products and I think it's bringing up a very interesting
• 30:21
  conversation. And then I got a clip of James
• 30:24
  lavish. I absolutely love James lavish.
• 30:26
  You guys know I'm a macro nerd now.
• 30:28
  And he is back at it explaining to people why the money they
• 30:33
  hold is Monopoly money. And I I'm really bringing it on
• 30:37
  because we were talking about JP Morgan and he specifically says
• 30:40
  a dig about JP Morgan. I mean, so it's kind of fitting.
• 30:43
  It's kind of fitting. Now, of course, got to give a
• 30:45
  huge shout out to the boys over at Bitcoin.
• 30:48
  Well, and I don't know if you guys saw, but they're making
• 30:51
  some moves into the Bitcoin treasury market.
• 30:55
  They they announced they raised some money and shouts out to
• 30:58
  Adam O'Brien. He actually took a couple of
• 31:00
  digs at people. He's like, I am going to show
• 31:03
  you guys how to do it with a productive company with cash
• 31:06
  flow and not a zombie company that's just trying to stack
• 31:10
  Bitcoin to pump their stock. So hey, shouts out to you, Adam.
• 31:14
  Anyways, guys, scan the QR code here and of course when you sign
• 31:17
  up you get 3 chances to win a million sets.
• 31:20
  I repeat, a million sets. What's that Today, about $1200.
• 31:25
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• 31:28
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• 31:33
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  And the last thing that we love about them is they have never
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• 31:51
  because they never hold your Bitcoin.
• 31:53
  We think they're doing it right by ensuring that you're taking
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  your Bitcoin into cold storage, which is literally the most
• 31:59
  important thing about Bitcoin. It's not enough getting Bitcoin
• 32:01
  exposure. You have to custody.
• 32:04
  You have to secure your own Bitcoin.
• 32:06
  This is how we ensure the Bitcoin revolution continues
• 32:10
  forward. All right, guys, I, I've took
• 32:12
  him long enough on this first thing, so we'll be right back in
• 32:14
  a minute. I want to give a shout out to
• 32:23
  our partner Stamp Seat. Is your Bitcoin and cold storage
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• 33:35
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• 33:55
  All right guys let's go to Clark Moody's dashboard and look at
• 33:59
  some numbers. Currently the Bitcoin price is
• 34:02
  $119,860, a decline from all time high of a measly -3 point.
• 34:09
  It was 6. So .3 negative 3.7% market cap
• 34:14
  2.39. Actually let me let me double
• 34:16
  check this. I think we are securely, I think
• 34:19
  we have secured the number. Oh no, actually, sorry, I was
• 34:24
  going to say #7 well, I don't know.
• 34:26
  You guys can check it for yourself.
• 34:28
  It says 2.389 is Amazon, This is 2.39.
• 34:34
  So maybe this hasn't updated yet, but I think we're we're,
• 34:38
  we're very close to finally securing that number seven spot.
• 34:42
  Bitcoin is almost bigger than Amazon.
• 34:44
  Well, it probably is bigger than Amazon currently, so yeah.
• 34:49
  Yeah, I would I think I would say that.
• 34:50
  So seventh biggest asset in the world.
• 34:52
  Anyways, let's move over here and hear James Lavish explain to
• 34:56
  you guys why the dollars in your wallet is really Monopoly money
• 35:02
  and how you can best protect yourself.
• 35:04
  Because if you don't understand this game, this is what it's all
• 35:07
  about. This is like the fundamental
• 35:10
  conversation that I think it's it's imperative to understand so
• 35:15
  that you really go into Bitcoin and realize what everyone is
• 35:19
  doing here. This is what it's all about.
• 35:22
  The Fed manipulating the money supply, manipulating access to
• 35:27
  capital has absolutely caused what's called the the Cantalon
• 35:33
  effect, you know, And so, and that that comes from this
• 35:37
  economist Cantalon, who, who figured out that the, those who
• 35:41
  are closest to the money spigot benefit the most.
• 35:45
  And so who is that? Those are JP Morgan's and hedge
• 35:48
  funds of the world, you know, and they, they really benefit
• 35:51
  from this. So that, and the people who have
• 35:56
  capital, the higher the, the wealthier demographic who have
• 36:00
  capital that are with the assets that are, yeah, assets they
• 36:03
  have, they have assets. That's right, too.
• 36:05
  And investments that are with those large banks are with the
• 36:09
  Fidelity's that they're, you know, they're, they're
• 36:12
  benefiting from that expansion of the money supply because it
• 36:15
  goes into their assets and it goes, you know, right to their
• 36:18
  bottom line, so. It's super interesting the the,
• 36:22
  the probably one question that I I would have to ask is like this
• 36:25
  whole conversation really has been about the Fed.
• 36:27
  Do the Fed even matter anymore in any meaningful way, or is it
• 36:30
  just a signal to the market? Oh, no, sure they matter.
• 36:35
  Absolutely, absolutely. In fact, they matter way too
• 36:38
  much. You know, they control the
• 36:41
  overnight lending rate that all these banks are tied to.
• 36:46
  So that creates a situation where we don't have much, we
• 36:50
  don't have much capital in the reverse repo anymore.
• 36:52
  There's it's actually drained, but it does, it causes the the
• 36:57
  cost of capital to go up for everything.
• 37:01
  So, you know, that's, that's one thing.
• 37:04
  And then actually flooding the market with money or siphoning
• 37:08
  it out, you're manipulating the money supply.
• 37:10
  It's like you going into the middle of it.
• 37:12
  We're all playing Monopoly, we're all on the board.
• 37:16
  And you know, if, if you already own most of the hotels and I
• 37:21
  don't own any, and you, you, all of a sudden you put, you flood
• 37:24
  the, the, the, you, you flood the, the market with money,
• 37:30
  meaning you put more money in the bank, it's just going to
• 37:33
  benefit you, you know, And so you're just printing more
• 37:37
  Monopoly money, but you take it out, It's going to, you know,
• 37:40
  it, it, that's, that's The thing is that you're, you're, you're
• 37:43
  injecting and taking out money in this game.
• 37:46
  And it, and it affects different people, different players in
• 37:49
  different ways. If you have assets, it's great.
• 37:50
  If you don't, you're toast. It just causes rises of pricing
• 37:55
  that rise, rising in prices and then you don't have the the
• 37:59
  money to keep up. That's the that's the whole
• 38:02
  conversation, guys. This is what it's all about.
• 38:04
  If you understand some basics in Tradfi and how the Tradfi world
• 38:11
  works, how the central banks work, This is why we are
• 38:15
  Bitcoiners in the 1st place. And I love his analogy of
• 38:17
  everyone's just on the monopoly board.
• 38:19
  Like, I don't know if you guys seen that meme where you look at
• 38:22
  do I even have dollars? Let me see.
• 38:24
  Do I have dollars in it? No, I don't have dollars.
• 38:26
  I was going to pull out a dollar because it looks if we have the
• 38:29
  colored bills, you know, I love the blue, the blue benjies.
• 38:32
  They, they look really nice. I like the blue color, but it
• 38:34
  literally looks like Monopoly money.
• 38:35
  This is what we're using, guys. It's, it's all a huge scam here.
• 38:40
  And This is why you need to hold assets.
• 38:42
  Or rather, This is why you need to hold Bitcoin.
• 38:43
  Bitcoin is like getting the best real estate on the Monopoly
• 38:46
  board. And it's not one where, you
• 38:48
  know, you have to wait till someone gets on one of the,
• 38:52
  your, you know, lands on one of your, your hotels here.
• 38:56
  It's like, as long as that Monopoly board, that money is
• 38:59
  moving on to Bitcoin, then you're, you're getting more
• 39:03
  wealth over time. You're literally, you know,
• 39:05
  acquiring more wealth. So I absolutely love that.
• 39:07
  I like saying we're playing Pac-Man as Bitcoiners.
• 39:10
  And I guess the new analogy is like we play Pac-Man, everyone
• 39:14
  plays Monopoly, and we're over here just acquiring as much
• 39:17
  Bitcoin as possible. But this is the whole scam going
• 39:20
  on. The more money that the central
• 39:23
  banks print, the more it debases your holdings.
• 39:26
  And This is why you want to hold something that cannot be
• 39:28
  debased. The 21 million hard cap.
• 39:30
  I think that's why it is one of the most important memes in
• 39:33
  Bitcoin. 21 million guys, everything divided by 21
• 39:37
  million. This is how we know it's going
• 39:39
  to continue to go up. And like I said, I love that
• 39:42
  clip because he's specifically being like the JP Morgans
• 39:45
  benefit from this the most. And now they're looking at the
• 39:48
  game and they're like, yeah, actually this Bitcoin thing is
• 39:52
  very undervalued. Maybe you might want to get some
• 39:54
  without saying that you might want to get some.
• 39:56
  That's that's what they're implying here.
• 39:58
  So guys, you know this if you watch this show, but if you're
• 40:01
  newer to the show, this is what it's all about.
• 40:05
  You cannot hold anything but Bitcoin right now, especially as
• 40:08
  Bitcoin becomes monetized. This is the best thing to be
• 40:11
  holding as as other people say, this is the fastest horse in the
• 40:14
  race. Wait, Yeah, I said that right?
• 40:16
  I said that right. For once.
• 40:17
  Anyways, Ken, what? What's your thoughts on James
• 40:21
  Lavish? Well.
• 40:23
  First of all, I've got, I've got it, I've got it, I've got it.
• 40:25
  Bone to pick with both both you and Lavish.
• 40:27
  Right I. Live in a Spanish speaking
• 40:29
  country? It's Cantillon.
• 40:32
  Oh, I always say I I was following.
• 40:34
  That. Yeah, no, no, no, I, I think, I
• 40:37
  think he's wrong. But no, I actually, I love James
• 40:39
  Lavish. I, I spent a bit of time with
• 40:40
  him over the, the years and I, I what I really like about James
• 40:44
  is he takes what I think is modern sorcery, a, a finance
• 40:49
  guru land wizardry, and he actually makes it accessible.
• 40:53
  And I it's a super impressive gift that all of us need because
• 40:58
  it is unnecessarily confusing to try to understand the money
• 41:01
  printer and how it actually works.
• 41:03
  I mean, look, they've convinced us I live in Peru, right?
• 41:07
  This is worth. Wait, wait, wait.
• 41:08
  That actually looks like Monopoly money.
• 41:11
  Yeah. That's what I'm trying to point
• 41:12
  out. Like it literally looks like
• 41:13
  Monopoly money and it is a derivative of the US dollar here
• 41:16
  basically, as best as I can tell, here in Peru.
• 41:19
  And I mean, how did we get convinced that that's money?
• 41:23
  I don't know. But it's it's a crazy reality
• 41:26
  that we live in. And you're right when you say
• 41:29
  that, you know, it's sort of it changes the game of Monopoly and
• 41:33
  they were playing to, for me, I think, I think you're right.
• 41:35
  I think we're playing a different game as bitcoiners and
• 41:38
  the game is we're saving Bitcoin, we're not saving
• 41:40
  dollars. And to me, that actual shift in
• 41:43
  the mindset to when you go to like, hey, I want to save
• 41:45
  Bitcoin and how much Bitcoin did I stack instead of Hey, how many
• 41:48
  zeros in dollars do I have in the bank account?
• 41:51
  That's the that's the shift. That's what makes you Bitcoin.
• 41:53
  That's where. Say whatever it is that you.
• 42:01
  Want to Oh, I I was like, dude, did we lose can or did we lose
• 42:04
  can? OK, you're back.
• 42:05
  You're back. OK.
• 42:07
  But to me like that is us actually like Bitcoin is the pin
• 42:12
  that's popping the the Fiat debt based bubble.
• 42:15
  And as the air comes out, it's just bringing us back to
• 42:19
  reality. And to me, reality is Bitcoin
• 42:23
  and Fiat is a delusion and the central banking and all that
• 42:27
  money printing mumbo jumbo wizardry.
• 42:29
  There is kind of the greatest lie that the world's ever told
• 42:32
  is that it's real and we've all bought into it.
• 42:34
  It's a form of wizardry. It's crazy that we've all sucked
• 42:37
  ourselves into that being true, but it's true.
• 42:39
  We have 8:00. Wake up.
• 42:41
  That's not the story. It's not real.
• 42:43
  Move on to Bitcoin and we'll all be happier and better.
• 42:46
  Yeah, 100%. And I, I like what you said
• 42:50
  about, you know, the one thing that makes you a Bitcoiner is
• 42:54
  just saving in Bitcoin. Now, I know there's a lot of
• 42:58
  like purists and purity tests and they're like, no, that's not
• 43:01
  what a true Bitcoiner is. But I kind of, I think I would
• 43:04
  argue the same thing. Like that's the fundamental
• 43:07
  shift here is where you're not just looking at Bitcoin as an
• 43:09
  investment, you're looking at it as your savings.
• 43:12
  And that's what I'm saying when if you look at what money is
• 43:15
  today, until you can get that shift in your head where you
• 43:19
  realize, oh, like, why, you know, why are we using paper IO
• 43:24
  us as our money? And I'm building my whole life
• 43:26
  on this thing and trying to acquire as much of this as
• 43:29
  possible. And I'm so stressed out over all
• 43:31
  this, you know, paper IO us, this Monopoly money, just
• 43:35
  because we've been told forever that it has real value.
• 43:38
  And then you shift to Bitcoin and you're like, oh, wait, my
• 43:41
  savings can go up. All I have to do is save in
• 43:43
  Bitcoin. And for most people, it just
• 43:46
  sounds too easy to be true. And I think that's also one of
• 43:50
  those mental leaps that they have to do where like we say it
• 43:53
  all the time. And I'm sure you've said it to
• 43:55
  your friends and family and they look at you and they're, they're
• 43:57
  just like, it's not that easy, bro.
• 43:59
  You're like your uncle's like, hey, I'm, I'm little Johnny.
• 44:03
  I'm glad you're getting excited about economic, but it's much
• 44:05
  more complicated than that. And you're like, no, it's not.
• 44:08
  Just start saving in Bitcoin and your life completely changes.
• 44:12
  And obviously now, especially from like the position Kent and
• 44:16
  I are in, and probably a lot of you guys in the chat, like we've
• 44:18
  been doing this for so long that it's so obvious to us.
• 44:22
  But when you first come into Bitcoin and you first try to
• 44:25
  wrap your head around this, you're still kind of taking a
• 44:27
  leap of faith. You're still like, I don't know
• 44:29
  if this is fully true. I don't know if I fully believe
• 44:31
  it yet. Then you look back four or five
• 44:34
  years, you know, 10 years down the line, you're like, yeah,
• 44:36
  that was the best decision I've ever made.
• 44:37
  Like it makes perfect sense now on this side of the aisle.
• 44:40
  Makes perfect sense. So I guess we still have a long
• 44:43
  ways to go to educate everyone around the world that Bitcoin's
• 44:47
  the best money. But that's just the opportunity
• 44:49
  for all of us to stack more and continue to ride this crazy
• 44:53
  roller coaster that is Bitcoin. So cheers to all of you guys.
• 44:57
  And yeah, it is correcting a little bit.
• 44:59
  But hey, 119.5, it's not that bad, guys.
• 45:02
  It's not that bad. We're we're all right.
• 45:04
  We're in this to win it. All right, guys, let's keep it
• 45:06
  moving. I do want to talk about Sailor
• 45:09
  and MicroStrategy. They made a pretty interesting
• 45:12
  move. The the news in itself probably
• 45:15
  isn't that interesting. I think it's the ramifications
• 45:17
  that are more interesting. And it's going to be very, I
• 45:21
  think I'm going to watch this very closely to see if it does
• 45:25
  do what I think it will. And I'll explain all that in one
• 45:27
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• 47:20
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• 47:24
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• 47:29
  It is by far the easiest and simplest way to secure your
• 47:33
  Bitcoin. If you lose your seed phrase, I
• 47:35
  know a lot of people lose their stuff, you will be safe.
• 47:39
  It's got multi sig by default inheritance by default.
• 47:42
  It's beautiful. Do I have it here?
• 47:44
  I actually I do have it here you guys.
• 47:46
  Oh oh oh, you guys heard that? It's got some weight to it.
• 47:49
  Got some weight to it. The bit key by block is
• 47:53
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• 47:56
  family these for Christmas. That's going to be their
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• 48:00
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• 48:02
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  use a promo code simply. So stocking stuffers for
• 48:10
  everyone. Actually it's going to be their
• 48:11
  only gift. That's what I got like 7 people
• 48:15
  I need to buy cold storage for. So that's a lot of money.
• 48:19
  I'm going to get the whole family bit keys for Christmas.
• 48:22
  Anyways, guys, this is what the news is around strategy.
• 48:26
  So here's a tweet. Strategies preferred equities,
• 48:29
  STRCSTRK and STRF is now available on Robin Hood.
• 48:35
  And you're probably asking yourself like, OK, cool story
• 48:37
  bro. Like whatever.
• 48:39
  You know, Robin Hood added some new products.
• 48:41
  Maybe you're like, I don't like Bitcoin treasuries, you know, I
• 48:44
  guess paper Bitcoin. I guess we've entered eternal
• 48:47
  paper Bitcoin summer. It's not it's not eternal paper
• 48:51
  Bitcoin September, it's eternal paper Bitcoin summer.
• 48:55
  But I think the interesting part is what are the implications
• 48:59
  here? And Adam Livingston, I'm sure
• 49:01
  you guys are familiar with his work.
• 49:03
  He's been very vocal and actually kind of got a huge rise
• 49:06
  from just being a such a pro Bitcoin treasury maxi here.
• 49:12
  I'm getting a buzz. I don't know what's going on
• 49:14
  here. And he goes the the kind of
• 49:18
  incremental that immediately compresses bid as spread with
• 49:21
  Charles and algorithm market makers making the preferred
• 49:23
  cheaper to enter and exit, nudging them towards the 500,000
• 49:27
  share liquidity screens that many income ETS require.
• 49:30
  And then retail investors already account for roughly 1/5
• 49:34
  of the total U.S. equity volume in 2025.
• 49:37
  And of course, Robin Hood is the largest mobile gateway for that
• 49:41
  flow. And so the idea here is that is
• 49:45
  this a new way of getting retail into Bitcoin?
• 49:49
  Obviously I'm AI want retail to buy Bitcoin just directly, but
• 49:56
  you're seeing a lot of products that are being created for a
• 50:00
  specific investor. And my question here is I'm
• 50:03
  wondering if this is going to be a way of incentivizing a whole
• 50:08
  new round of retail. Now, I'm not the biggest fan of
• 50:11
  the new retail crowd being paper Bitcoin stock, you know,
• 50:15
  maximalist here, but I'm wondering whether the returns on
• 50:19
  these Bitcoin exposure products are going to incentivize people
• 50:23
  to kind of dip their toes back into Bitcoin.
• 50:25
  Obviously, as we've been covering on the show, money is
• 50:29
  tight for a lot of people right now.
• 50:31
  You know, money is tight for the majority of people in the world.
• 50:34
  And as the they're they're sorry, I'm trying to figure out
• 50:38
  this, this buzz, I don't know if you guys hear it as people are
• 50:42
  struggling to make ends meet. We, as we were saying earlier,
• 50:45
  there is something about human psychology that as you kind of
• 50:50
  are, you know, struggling to provide, you start to, and it's
• 50:55
  not the smartest move, but you start to look for, you know,
• 50:57
  quote UN quote riskier and riskier ways to make more money.
• 51:00
  Now I'm wondering if these products are going to be, you
• 51:03
  know, shiny enough for people to get back into Bitcoin And of
• 51:06
  course, strategy here. Sailor's been putting on a
• 51:09
  master class and, and he just recently came out and said they
• 51:13
  want to get 5% of the total supply, which would, you know,
• 51:16
  take the Bitcoin price like 10X from here and potentially even
• 51:20
  higher. And I'm just wondering whether
• 51:23
  this move is actually going to get retail into Bitcoin again.
• 51:28
  Now, of course, you can trade Bitcoin on Robin Hood, but I'm
• 51:32
  just wondering are people are, do people need kind of riskier
• 51:36
  and riskier and more shiny Bitcoin products for them to
• 51:39
  kind of dive back into the Bitcoin market after, you know,
• 51:43
  so many years of maybe getting, you know, rug pulled and dumped
• 51:47
  on? I'm just wondering if this is
• 51:49
  going to be a big move for retail or is this just a, you
• 51:53
  know, a marketing gamut for sailor, But I I think retail
• 51:56
  might like this. And so I'm opposed that question
• 51:58
  to you, Kent, Do you think retail is going to look at this
• 52:02
  or is this too complicated A product for retail to look at?
• 52:05
  And they're, you know, they need a 42 IQ type products like me
• 52:09
  that just buy Bitcoin directly. Oh, I, I think, I think that
• 52:14
  there's a lot of Tradfi that is just chasing yield out there.
• 52:19
  In fact, I think that's the majority of Tradfi.
• 52:21
  And for me this product is a, a yield generating product, right.
• 52:25
  Like to me, I don't think they care at all.
• 52:27
  There's been kind of underlaying it.
• 52:28
  I think they're going to look at percentages and what it's done
• 52:30
  and say, cool, count me in. Let me throw money at that.
• 52:33
  And I think fundamentally it's because what you were saying
• 52:37
  earlier that people are tight and don't have a lot of money.
• 52:40
  And so I think when that starts to happen, there's actually more
• 52:43
  degeneracy. Yeah.
• 52:45
  Start to feel a bit nihilistic and hopeless and start to say
• 52:48
  hey cool, 100 odds with my last $5.
• 52:51
  Great. I'd rather spurn my last $5 to
• 52:54
  get 1000 or 500. You know, it's 101 odds then I
• 52:58
  would, you know, keep it to buy an extra bean burrito.
• 53:02
  You know, it just seems like that's kind of the environment
• 53:04
  that we're in is degeneracy. And if you actually look at like
• 53:07
  it was a great book that I ranked 5-6 years ago now called
• 53:10
  When Money Dies and talks about how hyperinflation took place in
• 53:15
  Germany between. World War One and World War 2
• 53:19
  and. How degeneracy took hold and all
• 53:22
  it's nasty guys. And you want to be on the
• 53:25
  lifeboat, you want to stack Bitcoin.
• 53:27
  And even if you look at what happened during that Weimar
• 53:30
  Republic time period, I think it's 1919 to 1924 that the book
• 53:35
  covers. But if you take a chart of the
• 53:38
  price of gold, so Bitcoin didn't exist then, right?
• 53:40
  You couldn't get on that life raft.
• 53:41
  We didn't have the Internet, A whole bunch of preconditions
• 53:43
  weren't there. But we have Bitcoin now.
• 53:46
  And during that time, the equivalent, the analog
• 53:48
  equivalent was gold. And if you look at the price of
• 53:50
  the German mark to gold, you see it whips off through this crazy,
• 53:53
  crazy volatile chart. And to me, like that's
• 53:57
  symptomatic of where we are here today with Bitcoin is I think
• 54:00
  there's a lot of degeneracy that's going to go.
• 54:02
  And to me, this listing on Robin Hood is kind of an indicator of
• 54:07
  that stratified degeneracy that I was mentioning earlier.
• 54:11
  I think more people are going to jump into it just because, cool,
• 54:14
  I can make a good percentage gain on my dollar invested.
• 54:18
  And yeah, that'll bump Bitcoin's price because it'll help to
• 54:21
  drive Sailor to buy more Bitcoin.
• 54:23
  But I I don't know that that's a meaningful driver of Bitcoin
• 54:25
  adoption. Yeah, I love it and I I love the
• 54:29
  actually I was trying to pull up this German mark to gold chart
• 54:33
  here. Wow.
• 54:33
  I I made the buds worse guys, sorry.
• 54:35
  So if you if you have headphones on, maybe you can hear it, but I
• 54:39
  was trying to find that one chart that we've that we've seen
• 54:44
  around about the price, the volatility of gold.
• 54:49
  Here we go find it. I found it, I found it, I found
• 54:52
  it. OK, this I think this chart is
• 54:56
  so underrated. This is, I think this is what is
• 55:00
  also going on right now. And oh, it's super small,
• 55:03
  whatever. You guys can see the volatility
• 55:05
  here, but you can see the wild swings going on in gold to a
• 55:10
  Fiat currency of the past. And I think we are starting to
• 55:14
  see something similar. And actually there's this one
• 55:17
  that might be a little better to what we are seeing right now in
• 55:22
  the price of gold as I was covering yesterday.
• 55:26
  A lot of people are thinking that the gold price is going to
• 55:29
  correct very heavily, but historically speaking, it could
• 55:33
  continue to RIP even higher as we've seen in the past.
• 55:37
  So I don't know if if you're a, if you're an anti gold bug and
• 55:41
  you're like, I'm going to make a bag by shorting gold, you might
• 55:46
  get wrecked is all I'm saying. I don't know.
• 55:48
  Hey, I don't know what's going on, But that's, that would be my
• 55:52
  bet. That would be my best guess
• 55:54
  here, though. Ken, I do love your framing
• 55:57
  though of tranfi degeneracy like that.
• 56:00
  I, I don't think I've heard that before.
• 56:02
  Obviously we I know what it means, but I haven't heard it in
• 56:05
  the mimetic form like that. And it's so true.
• 56:08
  Like that's exactly what's going on right now.
• 56:11
  And as much as you hear the siren in call of the tradfy
• 56:16
  degeneracy, you're like, my saving grace is I realized
• 56:20
  myself, I have some self-awareness here, even though
• 56:22
  I have a 42 IQ. I'm, I'm, you know, fairly self
• 56:26
  aware and I just know myself well enough that I'm, I just, I
• 56:30
  just buy Bitcoin. I store Bitcoin, you know, I
• 56:32
  just hold on to my 32 SAT's forever and hopefully that that
• 56:36
  is going to change the trajectory of my bloodline.
• 56:39
  But tradfy degeneracy is is that's that's got to that's got
• 56:43
  to catch on. That's a really good meme.
• 56:46
  Well, thank you. I, I don't know if I made it up
• 56:48
  or heard it from somebody else, but I'll, I'll take, I'll take
• 56:50
  credit for for now because I haven't heard anybody else say
• 56:53
  it. But to me it's just, it's dead
• 56:54
  obvious. Like our industry, our market
• 56:56
  loans by pain, right? Like the last two cycles, it was
• 57:00
  very clear that that's what happened.
• 57:01
  Like the, the 20/16/2017 cycle was the ICO mania.
• 57:06
  Hey, go print your own token this cycle or the last cycle was
• 57:11
  hey, let's do some crazy leverage on hedge funds, right?
• 57:16
  I think that's what was behind 3 arrows and took FDX out and and
• 57:20
  then the GBTC carry trade. I think anyhow there was some
• 57:25
  degeneracy there. It just seems like degeneracy is
• 57:28
  always what has to happen and us to learn a new lesson.
• 57:32
  And it's pretty clear to me that Tranfi has not played in a
• 57:35
  meaningful way with Bitcoin yet until this cycle.
• 57:38
  And so hey, they got to learn their lesson.
• 57:41
  That's how you're in your stripes with Bitcoin.
• 57:43
  And so I, I absolutely think that we're going to see a lot of
• 57:46
  blow up, but it will be there. I actually see think we don't
• 57:49
  see very much in the crypto sphere for blow UPS.
• 57:53
  I mean, there'd be degeneracy there, but those are the same
• 57:55
  games as always. I just don't think we see the
• 57:57
  massive blow outs happen in that particular sector.
• 58:00
  This time it's it's the Tratify guys that we're going to have to
• 58:02
  wise up. Yeah, Well, I made AI made a
• 58:05
  prediction a while ago actually, like at the very beginning of
• 58:09
  this institutional cycle that kind of similar to what you were
• 58:13
  saying that I think the next blow up is going to come from
• 58:15
  Wall Street playing in Bitcoin and not from some other shit
• 58:19
  coin that's really going to affect the Bitcoin industry like
• 58:22
  we've seen in the past. I think it's going to be way
• 58:24
  bigger than we've seen in the past, but it's not going to come
• 58:27
  from, you know, the that corner of the market that you think it
• 58:30
  is. I think I also believe it's
• 58:32
  probably coming from Wall Street.
• 58:34
  Yeah, yeah, yeah. Like we go, we run some crazy
• 58:37
  number. Like all of a sudden we get
• 58:39
  euphoria and we go to some crazy number.
• 58:41
  You know, I've heard 400,000 put around.
• 58:43
  I'm not predicting that price, by the way.
• 58:45
  I just could see something like that happening.
• 58:47
  And then suddenly we have to come clear back down to like 80
• 58:49
  or 100K, right, to like wipe out and smoke a bunch of the trad
• 58:53
  Floyd boys and give us another shot at, at, at at clearing our
• 58:58
  bloodline. Yeah, you know, my first knee
• 59:02
  jerk reaction is like, please, no, let's not do that again.
• 59:06
  But if it's but I'll I'll take it If it's blowing up Wall
• 59:08
  Street, I guess, I guess the trade off is worth it here.
• 59:11
  I guess, I guess, I guess it'll be worth the lols.
• 59:14
  You know, we might be way broker, but it'll be worth the
• 59:16
  lols. So I'll be OK if I'm dunking on
• 59:20
  Wall Street next year or what, 20 end of 2026 or something like
• 59:24
  that, because they blow up. Well, here's here's the good
• 59:27
  news is that also means that they come to our side and they
• 59:29
  no longer see us as the as the enemy.
• 59:31
  And they're like, oh, I get Bitcoin now.
• 59:33
  And now they're now we're pushing, pushing all the same
• 59:35
  direction. Well, they though.
• 59:37
  I think they're going to double down in the degeneracy.
• 59:40
  Y'all somewhere, but we'll, we'll get some converts every
• 59:44
  every cycle we get a new new cohort of cohorts.
• 59:47
  Yeah. Of of converts.
• 59:49
  Yeah, I mean, as the saying goes, the best way to become a
• 59:53
  Bitcoiner is by getting burned in shit coins.
• 59:55
  So I think, I think Wall Street can be considered a shit coin at
• 59:58
  this point. So you know that that will turn
• 1:00:01
  some Bitcoiners out, but we'll see.
• 1:00:04
  It'll be a fun ride nonetheless. Man, it'll be a good time.
• 1:00:07
  Anyways, Let's keep it moving. We got Kent Horn and he wants to
• 1:00:11
  share some incredible news with us guys, some insights into the
• 1:00:15
  mining space, the new venture. I'm going to pick your brain on
• 1:00:19
  this one, Kent. So we'll be right back in a
• 1:00:21
  minute. I want to give a shout out to
• 1:00:25
  our partner Hive Digital Technology.
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  Join today where Bitcoin meets freedom.
• 1:02:25
  Wait, Ken, I, I had it all. I had it all set up so we could
• 1:02:28
  just jump right into it. But I, I really like the comment
• 1:02:31
  from whoever's handling the YouTube SAS mining account.
• 1:02:35
  He goes at SAS. We live and die by Opti's words.
• 1:02:38
  So I really need him to be super mega bullish right now.
• 1:02:43
  I wouldn't do that, guys. Not financial advice.
• 1:02:45
  Students do not run a business based on what I say, OK.
• 1:02:50
  Oh, man. All right, Ken, enough jokes.
• 1:02:53
  Let's talk about this, man. You guys are making a huge move
• 1:02:57
  in Ethiopia, man congratulations.
• 1:02:59
  I think when you were on last last month, you were kind of
• 1:03:02
  teasing this and now, now it's official.
• 1:03:05
  So SAS mining expands to Ethiopia now on 4 continents.
• 1:03:10
  Man, you guys are going global. Congratulations.
• 1:03:13
  And I think let's start with where we ended the last
• 1:03:16
  conversation. You were telling us that you
• 1:03:18
  were just down in Ethiopia. You were kind of teasing, you
• 1:03:22
  know, what you were doing down there.
• 1:03:24
  So, you know, why'd you choose Ethiopian and what is, you know,
• 1:03:28
  what is it not only just a competitive advantage that you
• 1:03:31
  think you're going to get down there, but like, what did you
• 1:03:34
  see when you came back from Ethiopia and made you go all in
• 1:03:38
  down there? So alignment of incentives, I
• 1:03:42
  think if you're a Bitcoiner, you, you become radicalized to
• 1:03:45
  just the impact of incentives in reality and the fundamental
• 1:03:50
  incentive that is driving the entire Bitcoin mining economy
• 1:03:54
  there. Well, there's actually 2.
• 1:03:55
  There's an abundance of of hydropower there from GERD which
• 1:04:00
  I'm forgetting what it stands for.
• 1:04:02
  GERD. Massive new dam on the Nile
• 1:04:05
  that's generating a ton of power, but there's also a ton of
• 1:04:09
  IMF debt in the country. And last year the government
• 1:04:14
  brought in 1/4 of a billion dollars in tax revenue from the
• 1:04:17
  Bitcoin mining industry. That that amount of dollars,
• 1:04:22
  they can't get it through any other export.
• 1:04:24
  And so us exporting Bitcoin out of there and bringing in dollars
• 1:04:29
  to do so is a game changer. And that's that's a golden goose
• 1:04:32
  that they're not willing to part with in any major way.
• 1:04:35
  So the combination of clean power, more clean power coming
• 1:04:39
  online then needing dollars, it led to a very unique set of
• 1:04:44
  circumstances to how they're protecting, how they're
• 1:04:46
  acquiring the dollars makes it a very secure and safe
• 1:04:49
  environment. Especially now that in the last
• 1:04:52
  month they've sort of cleared out like the early pioneering
• 1:04:55
  phase where they oversold the power that they have available
• 1:04:59
  and they had to sort of pick winners and losers.
• 1:05:01
  And now we came in at the perfect time where basically
• 1:05:04
  we're able to step in and buy the blood in the street.
• 1:05:06
  And what that means is low cost power rates with a good
• 1:05:09
  operator, with long term business stability.
• 1:05:12
  And what we found from being in Paraguay is that having a seat
• 1:05:16
  at the table at these geographical places that have
• 1:05:21
  oodles of excess hydropower leads to more long term
• 1:05:24
  opportunities. So US pointing a flag there was
• 1:05:27
  just logical. There's a couple more places on
• 1:05:29
  the planet we'd like to be, but planting a flag on Ethiopia for
• 1:05:32
  us brought us to 4 continents. So we're in North America, South
• 1:05:36
  America, Europe, and now Africa and being a team of just 12
• 1:05:41
  people doing all this. It's, it's pretty freaking rad.
• 1:05:44
  And I, I got to weed in a little bit and some questions.
• 1:05:46
  We're coming on the chat as I was I'm twitching here slightly
• 1:05:49
  because I've had a head cold and took a shot of espresso right
• 1:05:52
  before jumping into the saddle here and didn't know I was going
• 1:05:54
  to be put on the the hot seat with taking over the stream.
• 1:05:58
  So if you guys see me twitching a little bit, it's the caffeine
• 1:06:00
  jitters. But the, but how I got to Peru
• 1:06:04
  also came up and, and it's I, I lived a very circuitous life, I
• 1:06:09
  guess is how to say it. But I did rooftop solar out of
• 1:06:13
  California for about a decade and had a dream of seeing the
• 1:06:17
  world and got burnt out. I was an executive publicly
• 1:06:19
  traded company. I was competing against Elon's
• 1:06:21
  cousins until he came in and bailed them out and just ran
• 1:06:26
  software sales, publicly traded quarterlies, all that BS.
• 1:06:30
  And when they brought a new CEO, it's like, cool, this is the
• 1:06:33
  perfect time for me to go see the world.
• 1:06:35
  So I thrown a backpack and traveled for a couple of years
• 1:06:37
  and I was 2014 to 16. I fell in love with a Portuguese
• 1:06:40
  woman in Bitcoin during that time.
• 1:06:42
  So I landed in Portugal in 2016 and started Entrepreneurial
• 1:06:45
  Journey. And then Entrepreneurial Journey
• 1:06:47
  eventually led me to reading Jeff Booth's The Price of
• 1:06:50
  Tomorrow. I realized, oh, I need to be in
• 1:06:52
  mining. And so I linked up with the
• 1:06:55
  original founder of SAS Mining. We pivot the business, raise
• 1:06:58
  some capital and have what we have here.
• 1:07:00
  But my wife's work brought us to Peru.
• 1:07:03
  So there is a very specialty clinic here that does drug
• 1:07:07
  addiction treatment and she's a therapist.
• 1:07:09
  And it was better time zones than being in Portugal for most
• 1:07:12
  of our staff, being out of the US.
• 1:07:14
  And so moved here. And I love it.
• 1:07:17
  It's a very simple life and it's outside the culture wars and I
• 1:07:23
  think Latin America. I'm made a bullish of American
• 1:07:26
  general, so that is Ethiopia and Ken Halliburton.
• 1:07:31
  Love it, man, love it. Let's talk about what you were
• 1:07:36
  telling me earlier of just the economics of mining a Bitcoin
• 1:07:40
  right now and how cheap it is to, you know, mine a full
• 1:07:45
  Bitcoin versus buying. And so I do have your site here.
• 1:07:48
  And it feels like this got way lower.
• 1:07:52
  Wasn't it like 60K last time we checked this?
• 1:07:54
  So is this attributed to the move you made in Ethiopia?
• 1:08:00
  Yes, so we have lower so you've. Got super cheap energy?
• 1:08:05
  Yeah, yeah. If you click on that don't trust
• 1:08:07
  verify, you can actually see the math behind it so that you go to
• 1:08:10
  go to our calculator there, but it's basically, hey, how much
• 1:08:15
  energy does, what's the what's it cost to run my mining rig and
• 1:08:18
  how many stats do I get? You just do division on that.
• 1:08:21
  You have a cost of Bitcoin. And so we call that the energy
• 1:08:23
  cost of Bitcoin or the daily cost of Bitcoin.
• 1:08:26
  It does not include the mining rig.
• 1:08:29
  Generally speaking, to get that daily cost of Bitcoin, it does
• 1:08:33
  take one to two years in savings.
• 1:08:37
  But what why we started with that simple number is because I
• 1:08:41
  just discovered in conversations with Bitcoiners everywhere I
• 1:08:44
  traveled, nobody knew that basic, basic concept of, of the
• 1:08:49
  value proposition of mining. I was just like, holy cow, we're
• 1:08:51
  missing, we're missing the boat here guys.
• 1:08:54
  Every this is the only thing. So like, let me just back the
• 1:08:57
  truck way up here and just just for a second here and explain
• 1:09:00
  something that sounds super, super simple and stupid, but
• 1:09:04
  Bitcoin mining is the only way to generate Bitcoin, right?
• 1:09:07
  It's the only way. We don't know how to make
• 1:09:09
  Bitcoin any other way than mining it.
• 1:09:11
  And if you look at the that what that means is as bitcoiners,
• 1:09:15
  you're going to put dollars into something.
• 1:09:16
  Do you really care how many dollars you get out of this only
• 1:09:19
  thing, this precious zero to 1 innovation that's a
• 1:09:21
  decentralized money printer. No, you don't.
• 1:09:24
  You want to know what the cost of that Bitcoin is as compared
• 1:09:28
  to if you had to buy it. And the truth is that it is very
• 1:09:32
  low cost as compared to going to an exchange at DCA.
• 1:09:35
  And oh, by the way, there's a lot of other upside to it.
• 1:09:38
  So it's outside the surveilled banking system.
• 1:09:42
  And Oh yeah, you don't have to worry about any point of
• 1:09:44
  purchase volatility, right? Like that's the that's the sort
• 1:09:47
  of pucker moment that most of us go through.
• 1:09:49
  You throw a couple grand on an exchange and you buy it and you
• 1:09:52
  watch it, you know, dunk by 20%. You just like, Oh my God, what
• 1:09:56
  did I do? I got to go face my wife.
• 1:09:58
  And this is already down 20%, right?
• 1:10:00
  You don't have any of that, right?
• 1:10:01
  So, so the counterparty risk, there is still some, you still
• 1:10:04
  got to trust us. And we've done a ton to like
• 1:10:06
  optimize that trust in the, in the entire business model.
• 1:10:09
  Like we don't make any money unless we're helping to make you
• 1:10:12
  Bitcoin. That's how our business model
• 1:10:14
  works. So we don't put any profit on
• 1:10:17
  the hardware or the electricity. We'll just take a percentage of
• 1:10:20
  the Bitcoin. And that means if you're not
• 1:10:22
  making any Bitcoin, we're not making any money either.
• 1:10:25
  So we've worked to optimize trust because at the end of the
• 1:10:28
  day, we have possession of something that's our client's
• 1:10:30
  property, which is their mining hardware and and our goal is to
• 1:10:33
  just generate as much Bitcoin as we can for you and that leads to
• 1:10:36
  a better Bitcoin experience. Yeah, I love it.
• 1:10:40
  I mean, considering I would say your field where you chose to
• 1:10:45
  build your business has a huge black eye on, you know, the, the
• 1:10:50
  marketing and just kind of the narrative around it.
• 1:10:55
  I remember I did, I did one very early in my Bitcoin journey and
• 1:11:00
  I, I didn't even throw that much money.
• 1:11:02
  I think I threw like, you know, they they were doing like the
• 1:11:04
  cloud mining stuff and I threw like a couple 100 bucks and I'm
• 1:11:09
  like, this is how I get some cheap sats.
• 1:11:11
  Then like a week or two after I'm like waiting for like my one
• 1:11:15
  SAT to come in. Basically, I finally looked at
• 1:11:18
  the economics of it and I'm like, Oh my God, I'm never even
• 1:11:20
  going to get my money back. Like what it like what did I do?
• 1:11:25
  So like you guys have been doing an incredible job.
• 1:11:27
  And just last question before we wrap up, Kemp, you were
• 1:11:30
  mentioning the turn around of these new rigs.
• 1:11:32
  So what is that process for people if they're interested in
• 1:11:35
  this before we wrap up today's show?
• 1:11:38
  Yeah, so I'm, I'm, I'm going to geek out here.
• 1:11:40
  This is this is mining geek talk here for just a second.
• 1:11:43
  But what we realized is going into Ethiopia, we were so it's
• 1:11:47
  the same operators that we're partnered with is brought us
• 1:11:50
  Norway and that's at like 99.9% of time.
• 1:11:54
  It's been a wonderful project. It's in the Arctic Circle.
• 1:11:57
  Heat reuse. Yeah.
• 1:11:58
  And our operators there said, hey, look, we've got a great
• 1:12:01
  opportunity in Ethiopia. We flew in to check it out, saw
• 1:12:03
  the alignment of incentives, saw what we, what they had there on
• 1:12:06
  the ground and said, yeah, let's do this.
• 1:12:08
  And it took us about a month of negotiation to to bring it to
• 1:12:11
  market. But at the end of the day, we
• 1:12:14
  knew coming out the gate with our offering that, hey, there's
• 1:12:18
  a lot of well placed criticism about Ethiopia, you know, in
• 1:12:24
  general. Like is this something that the
• 1:12:26
  markets going to be able to absorb?
• 1:12:28
  Like yes, we've been working optimized trust.
• 1:12:30
  I don't have an issue with it. I've got high trust for, for
• 1:12:33
  everything that's going on there, but is the market going
• 1:12:35
  to perceive this as something they can trust?
• 1:12:38
  And we identified as kind of the biggest issue is the wait time
• 1:12:42
  in between, hey, a client buys a mining rig, we get it shipped
• 1:12:45
  from China, we get it deployed there 'cause I just don't have
• 1:12:47
  enough money to go pre-order all the mining rigs and have them on
• 1:12:51
  the shelf to, to resell, right? So how do we shorten that gap?
• 1:12:55
  And we came up with an innovative approach that I
• 1:12:57
  believe we're the first in the industry to take, which is
• 1:12:59
  virtual rigs. So and actually it's, it's kind
• 1:13:02
  of what you were talking about except for we're doing it
• 1:13:04
  legitimately. So we go buy a PED of hash worth
• 1:13:07
  of hash rate and this is where it's going to get really geeky.
• 1:13:10
  And then we break it down to be the exact same hash rate as the
• 1:13:13
  mining rig that you purchased and we get that deployed to you
• 1:13:17
  right away. So we call it virtual rig
• 1:13:19
  because it has all the same characteristics.
• 1:13:21
  You're paying the exact power costs, you're getting the exact
• 1:13:23
  same hash rate as if the mining rig were there.
• 1:13:25
  And that way you have hashing quicker and you don't have to
• 1:13:30
  wait the 40 days that it would typically take to get it
• 1:13:32
  actually there on site. So as soon as it comes on site,
• 1:13:35
  we swap it out. You got your, your actual mining
• 1:13:38
  rating, your serial number then. But that way our clients don't
• 1:13:41
  have to wait seven days before starting to benefit from a
• 1:13:43
  purchase with us. Love it, man.
• 1:13:47
  You guys are really iterating and I, I think leaving that,
• 1:13:51
  that corner of the industry forward.
• 1:13:53
  So more power to you, man. Really, really huge
• 1:13:56
  congratulations for moving down to Ethiopia.
• 1:14:00
  Can't wait to see what you guys do now.
• 1:14:02
  Actually, could you tease? Is there any teasers yet that
• 1:14:04
  you can drop on them? You know you did last time you
• 1:14:07
  were on the show or just just, I don't know.
• 1:14:10
  Ethiopia, Yeah, Check out what we're doing in Ethiopia.
• 1:14:13
  So we did do a couple of press releases last month and I didn't
• 1:14:17
  talk about one of them, which is we've got ocean.
• 1:14:20
  So we integrated with ocean. We're doing the very first
• 1:14:22
  revenue share model with Datum and Ocean.
• 1:14:27
  And yes, that puts us into the Nazi camp.
• 1:14:29
  Proud, proud Nazi here. Yeah, yeah, yeah, yeah, yeah.
• 1:14:32
  We're not going to get off that. We're not going to go down that.
• 1:14:35
  Road, Yeah, don't move. Our channel, yeah, but Oh yeah.
• 1:14:39
  Did I? Did I just see you a strike by
• 1:14:43
  saying that? I don't know, I don't know.
• 1:14:44
  I'm just, I'm just trolling. Yeah.
• 1:14:47
  We got Nico just walk in the door like wait, what did they
• 1:14:49
  say? These guys are off the rails,
• 1:14:53
  no. And then, and then we've got to
• 1:14:55
  read performance. So what that means is we decided
• 1:14:59
  to tie because our livelihood is tied to your performance as a
• 1:15:02
  client. And so we said, hey, look, you
• 1:15:05
  buy a certain amount of hash rate, that's the valuable thing.
• 1:15:08
  We're going to guarantee that we're going to deliver that on
• 1:15:10
  an annual basis. And if we don't, we're going to
• 1:15:12
  make up for it with service fee credits.
• 1:15:14
  That way we can backstop our promise to deliver was a very
• 1:15:19
  easy step forward. So that was that was another
• 1:15:21
  innovation that we're the first to bring to market is both.
• 1:15:24
  So all three Ethiopia, the virtual rigs, ocean with the
• 1:15:28
  revenue share model and Datum and then the third one being a
• 1:15:31
  rigged performance guarantee that all our clients receive.
• 1:15:34
  Nobody in the industry is doing those things.
• 1:15:36
  And it's all because like we took this a really simple idea,
• 1:15:39
  which is, which is worked in Web 2, which is software as a
• 1:15:41
  service. And we applied it to Bitcoin
• 1:15:43
  mining where they're just the first to have tried it.
• 1:15:45
  And you would think that that's a really innovative idea, but I
• 1:15:48
  mean a very basic idea, but I apparently it's very innovative
• 1:15:52
  in the mining industry. Yeah, man.
• 1:15:54
  Kent, well, again, I applaud your guys's efforts and what you
• 1:15:57
  guys are doing. Love to see it, man.
• 1:15:59
  So Kent, before we wrap up, if someone wanted to get in touch
• 1:16:03
  with you, where, where can they reach out to?
• 1:16:06
  DMS are always open until I have an account that's too big and
• 1:16:10
  can't manage that anymore. But yeah, DMS are always open on
• 1:16:13
  Twitter at K Halliburton's the best way.
• 1:16:16
  And then if you just go to sasmining.com, go chat.
• 1:16:19
  And we've always got our guys available to talk with you and
• 1:16:21
  answer questions, you know, check it out.
• 1:16:24
  You know, we think it's a better way to stack your your, your
• 1:16:26
  corner. Love it, Kent.
• 1:16:28
  Well, thank you so much for coming on today.
• 1:16:30
  All right, guys, that's it for today.
• 1:16:33
  This was episode what, 1345? Wow.
• 1:16:36
  We've done 1300 shows. That's insane.
• 1:16:39
  We will be back tomorrow. You guys already know.
• 1:16:41
  We go live at roughly 12:30 PM Eastern Time, Monday through
• 1:16:46
  Friday. We'll be back tomorrow for our
• 1:16:48
  normal show. Everything will be normal
• 1:16:50
  tomorrow, I promise. I well, I hope to promise.
• 1:16:53
  I can't. I can't guarantee to you, but
• 1:16:54
  you know things happen over here is your boy Opti.
• 1:16:57
  I will see you guys tomorrow. Have a good rest of your day.
• 1:17:01
  Peace out guys. Today's episode was brought to
• 1:17:04
  you by bitcoinwell.com, a Bitcoin only platform on a
• 1:17:07
  mission to enable financial independence.