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America Is Buying Bitcoin?! What Happens Next? | Bitcoin Simply · Simply Bitcoin

• 0:00
  Since the United States government signed the strategic
• 0:02
  Bitcoin Reserve, we've been wanting to actually hear how
• 0:05
  much Bitcoin do they actually have, what are their plans for
• 0:07
  actually stacking Bitcoin and tomorrow we're going to actually
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  find out. The Trump administration is
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  expected to release it's a first National Crypto Stockpile report
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  on Wednesday stateside detailing the structure and contents of
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  the government's digital assets. This includes holdings under the
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  Strategic Bitcoin Reserve and the USA Digital Asset Stockpile.
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  What happens if the government starts to actually buy Bitcoin?
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  If they see Bitcoin as digital gold, will other countries
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  follow next? Let's find out.
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  This is Dante Cook with Bitcoin. Simply, let's go.
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  What's the next big, big thing for move Bitcoin higher than you
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  think? Because it seems like you've
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  gotten everything you wanted, haven't you, at this point?
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  Oh, there's still a lot more than we're looking for.
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  I think there's really three things that people are kind of
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  paying attention to. The first is the United States
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  of government at some point is going to announce that they're
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  buying Bitcoin, creating the initial Bitcoin kind of
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  strategic reserve and sitting the Bitcoin that we already had
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  there was good. But that's kind of the, you
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  know, not the main dish. The main dish is when they start
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  buying, and I think that will happen at some point.
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  The second thing I think you're going to see is you're going to
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  see some of the last standing people on Wall Street
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  capitulate. And so there's a couple of firms
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  that continue to say, hey, we think that this is speculative.
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  We think this isn't good enough for our clients.
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  I think that they'll kind of eventually give up and wave the
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  white. Flag and then finally Andrew
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  Ross Sorkin besides it. I think Andrew Ross Sorkin
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  understanding the. Very last.
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  No. The last one.
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  OK, Andrew Ross Sorkin will be the actual last person to admit
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  that he was wrong about Bitcoin. But even Andrew Ross Sorkin is
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  going to have nothing to say when Bo Hines and the United
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  States government come out with budget neutral ways to stack
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  more Bitcoin and build a strategic Bitcoin reserve, a
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  digital gold reserve. And when that happens, it's not
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  just going to be the United States that buys.
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  It's a legitimate asset that every G20 country will look at.
• 2:03
  Listen to what Brian Armstrong, CEO of Coinbase, had to say
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  about this. Yeah, well, the President Trump
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  passed this executive order, creating a strategic Bitcoin
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  reserve and then a crypto asset stockpile to hold some of these
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  other ones as well. A lot of people don't know, but,
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  you know, the US actually holds strategic reserves of a number
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  of different assets. So gold is probably the most
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  famous one, but there's a bunch of other ones that they hold
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  like, you know, there's an oil strategic reserve, there's like
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  Palladium, I think there's a bunch of like rare minerals.
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  And so it's kind of a historic step where the United States
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  government is saying, actually we think Bitcoin is another
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  strategic asset which should be held by the US government.
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  This would have been unthinkable, by the way, like
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  five years ago where the government was so skeptical of
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  it. And now like the United States
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  government is, is holding us a stockpile of these of these
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  Bitcoin assets. So that was a huge moment.
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  It kind of I, by the way, that now that the US is doing this, I
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  think like the rest of the G20 countries and central banks are
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  all starting to look at this. I'm not holding my breath here
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  that this will actually get announced tomorrow, but let's be
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  real, there's all kinds of strategic reserves that the
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  United States government already has that we don't hear about
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  nearly as often as Bitcoin. People look at these different
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  properties of money and you can kind of score, score different
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  monies. And like, this is partly why I
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  think Bitcoin is probably the best form of money that's ever
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  created because it is scarce, provably scarce, just like gold
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  or something like that. But it's more portable than
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  gold. You can send a Bitcoin
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  transaction kind of anywhere in the world pretty quickly.
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  It's subdivisible down to like 8 decimal places.
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  You know, it's very durable. It's not going to go bad or and
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  it's, it's like it's fungible to like, you know, that if I have
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  one Bitcoin, it's just as good as another Bitcoin, right?
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  Like some, you know, imagine if you had like different purities
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  of metals and like, oh, is this one diluted a little bit or like
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  are they hiding some lead in there?
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  You know, So yeah, I think you could think of Bitcoin as like a
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  digital gold. Bitcoin is digital gold, it's
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  crypto with an actual utility and use case.
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  And right now there's a bunch of other crypto tokens and
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  projects, Solana and Aetherium being 2, that are being
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  mentioned as something to replace Bitcoin.
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  That's absolute nonsense. Let's not forget Aetherium and
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  Solana are unregulated, unregistered securities that
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  have been grandfathered in because they were able to lobby
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  the United States government. And now they're on track to
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  become the bedrock upon which the CBDC financial institutions
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  are going to build the dystopian future on top of They monetized
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  A token that doesn't have any actual real value, but.
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  One of these that's the most interesting to me, I guess would
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  be the Clarity Act, specifically because I think the way that it
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  was written grandfathers in certain block chains and
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  advantages them relative to what would happen if they were
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  launched today. So if you look at the way the
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  the the legislation was written, it allows technologies like
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  Ethereum and Solana blockchains to be classified as
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  decentralized when they're actually not.
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  And if they were launched today, they would go through a much
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  different process than they're going to go through now that
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  they're being grandfathered in. Now, whether or not this
• 5:17
  technology ultimately gives these other blockchains enough
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  of a step forward on Bitcoin remains to be seen as my
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  perspective that the underlying technology will ultimately win
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  the day. So if you look at these
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  grandfathered in technologies like Ethereum and Solana,
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  they're proof of stake technologies.
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  And what that means is if I have a big stake in the blockchain, I
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  get to say what happens. That's exactly how society works
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  today and it's not really a technological revolution.
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  What's so different about Bitcoin is the governance of it
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  and it's proof of work consensus mechanism.
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  And so we tend to believe that the energy intensity that's tied
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  to new creation of Bitcoin is a game changing technology.
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  And so, you know, you can speculate as to why things like
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  Ethereum have had this pop in the past few weeks.
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  That's my perspectives. Because this this legislative
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  helped them have a leg up. I don't think in the end of the
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  day they're going to win. I agree 100% with Bill Miller
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  right here. Bitcoin is the only true
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  innovation here, and that's because of the proof of work
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  mechanism. We don't need another token
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  created out of thin air. We already have that.
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  That's the role that banks play today.
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  And did you know that it's not just the central bank, which we
• 6:25
  talked about a lot on the show, that can create money out of
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  thin air? In a recent interview with
• 6:29
  Tucker Carlson, Richard Werner actually tested a theory for do
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  banks actually create money out of thin air?
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  And what he found out will shock you.
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  Now to do this, I had, I needed a bank that would cooperate.
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  And my plan was, well, I'm going to take out a bank loan and
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  we're going to watch inside the box, inside the banking's
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  accounting, the bank's accounting system.
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  They're, you know, how are they accounting for this and what
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  transactions are taking place when I take up my loan?
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  You know, the, the, the intermediation theory says
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  deposits get lent out. The fractional reserve theory
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  says that the bank needs to have excess reserves at the central
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  bank and that's then used for the new loan.
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  And the credit creation theory, you know what it says?
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  It says when you get a loan, no money is transferred to your,
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  it's transferred away from anywhere else and you just
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  credited new money out of nothing that is not transferred
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  away anywhere inside or outside the bank, which seems, you know,
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  quite sort of. Extreme like magic.
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  In fact, 1 uses the conventions to use Latin for this.
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  The money is created ex nihilo out of nothing.
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  So when it's the empirical test, the conclusion was the financial
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  intermediation theory is rejected and the fraction
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  reserve theory is rejected. Banks create money out of
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  nothing. By the way, you can look it up,
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  it's the most downloaded paper of all Elsevier publications
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  called and it's open source, Open Access.
• 7:56
  So can banks individually create money out of nothing?
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  Any bank. And not, just to be clear, not
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  just central banks. Any bank, in fact, That's the
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  whole point. We're talking about normal banks
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  with central banks. It wouldn't be a surprise.
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  But the Bank of Omaha. Yes, any bank creates money when
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  you take out a loan, the money that you're given as the
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  borrower, it didn't previously exist.
• 8:21
  It is net new purchasing powders being created and added to the
• 8:24
  money supply, and that's how the system works.
• 8:27
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• 8:29
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• 8:33
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• 8:36
  unlock liquidity from your Bitcoin collateral without
• 8:38
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• 8:42
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• 8:58
  dot leadin dot AO slash simply Bitcoin.
• 9:01
  One of the ways that you can continue to grow on your journey
• 9:03
  and your Bitcoin journey is by not listening to people like
• 9:06
  Brian Armstrong talk about Bitcoin.
• 9:07
  Be the Internet of money, but not actually using Bitcoin for
• 9:10
  its real properties, which is sovereignty.
• 9:13
  You're able to hold this bare asset yourself, but learn how to
• 9:16
  do that not just by browsing Reddit forums and looking online
• 9:20
  or your favorite YouTube folks. Get an actual coach.
• 9:23
  Schedule a free 30 minute consultation with the team at
• 9:25
  the bitcoinway.com. They'll walk you through step by
• 9:28
  step how to remove your Bitcoin from exchanges privately,
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  safely, securely, and confidently so you can protect
• 9:33
  your generational wealth the right way.
• 9:35
  Go to thebitcoinway.com/simply Bitcoin.
• 9:38
  The current issue with our monetary system as it stands
• 9:40
  today is that there's no accountability and there's no
• 9:42
  controls. And it's also becoming more and
• 9:45
  more centralized with the central bank becoming the
• 9:48
  dominant form and money creator in our financial institution
• 9:51
  over the last 40 years. They're the most dominant force
• 9:54
  in the world that is unelected and has risen to power from the
• 9:58
  power that we've given them. And I hate to break it to
• 10:01
  people. This crypto stuff that's going
• 10:03
  on with CBD, CS and Ethereum and tokens and blockchain is all
• 10:06
  leading to a future that we don't actually want.
• 10:09
  A future that exacerbates the centralization of the current
• 10:13
  financial system, giving more power to people at the top and
• 10:16
  less the people at the bottom. Governments and central banks
• 10:18
  want banks to fail, small banks specifically, so they could say
• 10:22
  they need to roll out a better form of digital money.
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  And since you asked about the next 10 years ahead, we have to
• 10:27
  talk about it because that's definitely top of their agenda
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  to introduce central bank digital currencies.
• 10:35
  Now, what is that? How does that fit in?
• 10:36
  Well, first of all, again, it's it's marketed in a very devious
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  way. They're telling us, oh, it's the
• 10:42
  digital aspect that's new. We used to have cash paper
• 10:45
  that's old fashioned. Now we need digital central bank
• 10:47
  money. Well, hang on.
• 10:49
  We've been using digital money for many decades, of course, and
• 10:52
  there's no problem, really. It works.
• 10:54
  Yeah, maybe some fees could be lower, but, you know, for that
• 10:58
  we need more competition, not less competition.
• 11:00
  So. So what's the problem?
• 11:02
  What? What's actually new?
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  You know, we've been using BDC bank digital currency for for
• 11:08
  half a century almost. Yeah.
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  So that's not new. What is new about CBDC?
• 11:14
  What's the C central? The centralization?
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  It's about centralizing things. Central banks are about to break
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  this old contract, this deal between the banks and the
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  central bank. The new innovation in CBDC's
• 11:28
  isn't bank digital currency, it's the fact that it's
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  centralized. We've been using bank currencies
• 11:33
  for decades. Bitcoin is the only way out, and
• 11:36
  that's because it's money that's tied to actual work.
• 11:38
  The proof of work mechanism in Bitcoin is the innovation that
• 11:41
  allows you to have scarcity in a digital world and it's hash rate
• 11:46
  just hit all time highs. That means more and more people
• 11:48
  are proving that this money is actually real.
• 11:51
  It's the only technological innovation that will allow you
• 11:53
  to send money without any banks over Bluetooth.
• 11:56
  So don't get distracted by Ethereum and Solana and all of
• 11:59
  this talk about building tokenized and privatized block
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  chains on top of crypto rails. That's not a new innovation.
• 12:06
  Bitcoin is the true innovation and I hope that the United
• 12:09
  States government gives us an actual plan for how they are
• 12:13
  going to be stacking corn for the betterment of our country.
• 12:15
  One of the ways that you can continue to learn your Bitcoin
• 12:17
  journey is by coming to Bitcoin conferences and meeting
• 12:20
  bitcoiners in real life. One of the best ways to do that
• 12:22
  is going to be coming down to Dallas, TX from November 11th
• 12:25
  through November 13th to the Mining Disrupt conference.
• 12:28
  Get 20% off your tickets by using the promo code Simply
• 12:30
  Bitcoin. Thanks for hanging out with me
• 12:32
  today. This is Dante Cook with Bitcoin.
• 12:34
  Simply happy stacking.