Latest / Simply Bitcoin / you won't believe what blackrock just did to their clients money... | EP 1456

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you won't believe what blackrock just did to their clients money... | EP 1456 · Simply Bitcoin

0:02
BlackRock froze $1.2 billion of client funds, but they're not
0:07
the only private credit company having issues.
0:10
We've seen multiple companies hot withdrawals in recent weeks.
0:14
Are we seeing bank runs happen as the potential cracks in the
0:18
system begin to show? And what does this mean for the
0:23
markets if there is a blowout? But further, what does this mean
0:28
about investor confidence in the economy as this current moment
0:32
is going on? There's a lot of strange stuff
0:34
happening in the world, obviously, and it seems like
0:39
those stressors are everywhere right now.
0:43
This really goes into why Bitcoin was created in the 1st
0:46
place, why there is a need for Bitcoin period.
0:50
And I, I think this moment in time is really proving not only
0:53
to us obviously, but I think to the world that you do need to
0:57
have some Bitcoin. So I'm sure you're asking, look,
1:00
why are we talking about BlackRock Private Credit?
1:03
This is a Bitcoin show after all.
1:05
Well, you know, BlackRock has a huge Bitcoin ETF and is this
1:09
showing us what can potentially happen to Bitcoin?
1:13
But further, there is a parallel to another Bitcoin company here
1:17
that is doing something similar. I'm sure you've heard the phrase
1:20
digital credit be thrown around for a while now.
1:23
So let me just start with the BlackRock news and then I will
1:25
compare it to the Bitcoin economy or the Bitcoin products.
1:30
So here's the big news. I'm on Yahoo's finance and it
1:33
goes Blackrock's private credit woes.
1:35
Time to sell the stock quote or sorry headline.
1:40
Of course BlackRock is having a little issues on their stock
1:42
right now. But what really is interesting
1:46
is of course, BlackRock restricted withdrawals from its
1:50
private credit fund, the HPS corporate lending fund or the
1:53
Heelan following a jump in redemption request.
1:58
Of course, this was initially reported by Financial Times, but
2:01
I don't have a Financial Times account, so I I can't show you
2:05
the financial Financial Times. But anyway, Heelan, which
2:08
manages approximately $26 billion and there's one of
2:11
Blackrock's largest private credit funds, received nearly
2:15
$1.2 billion in redemption request or 9.3% of net asset
2:20
value in the ongoing quarter. However, the fund will only pay
2:25
out a $620 million of that request touching the 5%
2:31
quarterly threshold. Obviously, if you read the fine
2:35
print, BlackRock can do what they want.
2:38
They are in control of the money, which is one of the memes
2:40
we always talk about. I know you guys think that memes
2:42
are just memes and it's just things we say all the time, but
2:46
it's really once you give your money to these institutions,
2:49
once you give your money to the bank, it's really not your money
2:52
and it's incredibly hard to get your money back out once you put
2:56
it in the Wall Street black hole anyways.
2:59
Black Rock acquired SPS investments.
3:01
You don't really need to care nonetheless.
3:04
Again, if this was just a single moment with BlackRock, probably
3:10
wouldn't be that big of a news story.
3:11
But in the recent weeks, we've seen this play out a couple of
3:15
times. And the first one was, of
3:18
course, Blue Owl Capital. That happened about last week,
3:21
maybe it was 2 weeks ago, like on a Friday, Thursday where the
3:25
news came out and they pretty much brushed over it.
3:27
They were like, oh, it's not really a concern.
3:29
We're just kind of adjusting here.
3:31
We, we just kind of changed the rules a little bit, but there's,
3:34
there's no worries out there. And then follow that up 3 weeks
3:38
later, we see that Black Rock is also having issues.
3:41
But again, they're not the only one.
3:43
Blackstone did something similar.
3:45
So this is kind of a theme going on right now.
3:49
Obviously, with what's happening in the Middle East, there's a
3:52
lot of stress in the economy. I don't know if you guys saw
3:54
what happened with oil over the weekend, but oil crude futures
3:59
are going parabolic. There is a correction right now.
4:03
Apparently there was, you know, the oil factories got struck
4:11
over the weekend and there was a lot of, you know, black ray and
4:16
there was fires. There was crazy videos on the on
4:19
Twitter about it. So there's a lot of, there's a
4:21
lot of uncertainty going on right now.
4:23
And I think the cracks are starting to show.
4:27
I think investors are starting to feel this.
4:29
I think the markets are really pricing in a prolonged war.
4:33
If you're looking at equities today, they're dropping.
4:36
It's not looking that good. But anyways, going further, of
4:40
course, he lends redemption requests.
4:41
News came amid growing apprehensions about systemic
4:44
risk in the private credit market.
4:46
Earlier this month, of course, Black, not Blackstone announced
4:49
a rise in his redemption cap from 5% to 7% after facing a
4:52
surge of investor requests last month.
4:54
Oh, sorry, it was last month, Blue Owl.
4:56
So yeah, about 2-3 weeks ago I was, I wasn't, I wasn't wrong.
4:59
Blue Owl Capital move to restrict investors withdrawals
5:02
from one of its retail focused funds.
5:04
Further, Apollo's global CEO Mark Rowe Owen has warned that
5:07
as shakeout is coming for private credit firms as the
5:10
industry faces concerns about rising defaults on loans to
5:13
software companies. Again, with this kind of
5:18
backdrop, with all of these stressors in the system, it is,
5:23
it is an interesting story. It, it, I think it is telling us
5:26
a lot about what is going on and how do you really price in what
5:31
is happening in the economy. Obviously there's a lot of news.
5:33
There's a lot of people paid to tell you everything's good.
5:36
I know the official White House is saying, hey, everything's
5:38
better than ever, though I do have a pretty interesting video
5:42
here that that is I'm going to play it in the, in the culture
5:46
for you guys. That is a corollary to something
5:48
we saw a few years ago, which is, you know, pretty interesting
5:53
to and it it's really starting to make you wonder what is
5:57
actually going on. How confident are we in that the
6:01
system is doing well, especially when you're seeing these types
6:04
of signs. Now going further, obviously
6:07
here, here's a couple Twitter breakdowns of it breaking.
6:09
BlackRock just froze 1.2 billions in withdrawal request
6:12
and private credit fund. Here's what happens the short of
6:15
it. Investors in Blackrock's $26
6:17
billion fund asked to pull out nine point 3% of their money.
6:20
BlackRock said no and cap withdrawals at 5%.
6:24
Blackstone did something similar.
6:25
We saw Blue Owl Capital literally say, hey, no returns.
6:29
Two of the biggest funds right now on the planet are limiting
6:32
how much you can take out. It's really starting to make the
6:35
case that, hey, you probably want some of your wealth in
6:40
Bitcoin and further in cold storage.
6:43
You want to be able to control your money because with what
6:47
you're seeing in the Middle East, with what we're seeing
6:48
from BlackRock, I don't know, it's looking like if your money
6:53
is in the banks right now and and I don't want to go full
6:55
doomer here. I I do believe the Fiat system
6:58
will probably survive for a little bit, but you you really
7:01
want to have some money in the exit boat is is kind of the
7:05
short of it now this this tweet here.
7:07
I think this is the tweet that really kind of brought it to my
7:10
attention though again, forgive me guys, but it does seem like
7:13
it might be some AI slop here. I I think they did use like
7:16
ChatGPT or Claude whatever to outright this, but there is, I
7:21
think a, a kernel of truth in this.
7:25
So they're saying a Black Swan alert.
7:27
They're not the only one saying this, but again, the whole, you
7:31
know, billions blocked, They're saying the system is cracking,
7:34
panic is spreading and liquidity is gone.
7:36
Now, I don't know if it's necessarily full blown panic
7:40
time, but if you really look into it, it does sound like
7:44
there was a bank run happening right now in private credit.
7:48
Again, they can do whatever they want with their money, but
7:50
pretty much if everyone goes in to redeem their money at one
7:54
time, they don't have the money there.
7:57
That that's like the short of it.
7:58
That's that's the take away from any time you give an institution
8:02
your money. That's why they had to pull back
8:06
from 9.3 to 5% is because they didn't expect so many people to
8:09
redeem their money. And now that they have wanted to
8:13
get their money back, they're like, actually we can't give you
8:15
back all of your money. You see where the problems
8:18
coming anyways, going to the bottom here.
8:22
And I think this is where the you start to kind of see that,
8:26
hey, one, there is a worrying sign here.
8:29
And two, when I compare that to what we're seeing in the Bitcoin
8:32
space with the quote digital credit meme, it's a stark
8:35
contrast. OK, so here we go, he goes.
8:39
Bad news often happens all at once.
8:41
The opacity in the leverage in the sector is concerning.
8:44
This is a $1.8 trillion industry.
8:47
And further, we're seeing rising oil prices, war in the Middle
8:50
East, AI shaking up the software companies that borrowed heavily
8:54
from these funds, and rate cuts seemingly off the table.
8:59
I don't know if you guys heard, but they're saying we might only
9:01
see two rate cuts right now. We'll see what happens when
9:05
Warsh gets in there and, you know, whatever political
9:07
pressure he sees and, and what actually happened.
9:10
But when the world's biggest fund starts saying you can't get
9:12
your money back, that's a massive red flag.
9:16
That's basically what we're saying here.
9:18
It's a massive red flag to see Black Rock, Blackstone and even
9:22
a smaller one like Blue Owl Capital say, hey, look, you
9:25
can't get your money back. Sorry.
9:26
I know you want it, but you can't get it back.
9:29
This is why I I believe in in some sense Bitcoin was created
9:33
in the 1st place is because it's your money.
9:35
You should be able to do what you want with your money when
9:38
you need it. Now this really brings in the
9:40
question of will they do something similar with all the
9:44
Bitcoin in their ETFs? Obviously they're the biggest
9:47
Bitcoin ETF holder you can see here 768,000 Bitcoin.
9:52
So this isn't just hey that's in private credit market has
9:56
nothing to do with Bitcoin. Obviously if there is panic
10:00
spreading, if there is some kind of huge blow out in a $1.8
10:05
trillion market, obviously that is going to probably take all of
10:12
the markets. Now Bitcoin as I've been kind of
10:15
covering for you guys has been doing pretty good in the face of
10:19
the war, rising oil prices, Bitcoin holding up pretty good
10:23
right now. And and it is very interesting
10:25
just in that respect alone. Now I said I was going to
10:29
compare this to what we're seeing in the Bitcoin space and
10:34
this is where it gets pretty interesting from a purely
10:37
Bitcoin perspective. Well, we saw today, this
10:41
morning, Sailor acquired more Bitcoin, a lot of Bitcoin
10:45
actually in one time acquired 17,994 Bitcoin for roughly $1.28
10:51
billion. Now obviously you're probably
10:54
like OK dude, Sailor's been Sailor's going to buy all the
10:57
bitcoins. Sailor's been buying all the
10:58
bitcoins. The only reason we're probably
11:00
not crashing right now is because Sailor's buying Bitcoin.
11:03
But this is where it gets pretty interesting because out of that
11:07
$1.26 billion or sorry, 1.28 billion dollars, 377 million of
11:14
that was on STRC or Stretch alone, which is the new digital
11:18
credit product from strategy from Michael Saylor.
11:23
There's a huge interest in this quote digital credit idea and
11:28
it's catching on and investors are looking at what sailors
11:31
doing with Strategy or rather with Stretch.
11:33
And and again, maybe these two stories are uncorrelated right
11:37
now. Maybe the traditional private
11:41
credit market investor isn't necessarily looking at what
11:45
strategy is doing at what stretch even is.
11:50
But there is a stark contrast right now.
11:53
And I'm not even the biggest believer in the idea of digital
11:56
credit. It like I get it and hey, it's
11:59
catching on. The markets are really
12:01
interested in it. Apparently.
12:02
You know, I'm I, who am I? I'm just a guy.
12:05
I'm looking at the data and it's like, OK, well, there seems to
12:08
be problems in the private credit markets.
12:12
There seems to be some stress. There seems to be general
12:15
uncertainty. Maybe there is panic spreading,
12:18
but when you look at what's happening in the Bitcoin space,
12:21
particularly with the Stretch product, there's a lot of
12:26
interest in it. There's a lot of capital flowing
12:27
into it. So you're seeing as we've been
12:30
talking about for a long time, there is the fabled, you know,
12:35
parallel economy growing right now and a new financial system
12:39
being built on top of Bitcoin. It is, it is just like when you
12:44
look at them next to each other, it is a very interesting dynamic
12:47
playing out. There might be issues in the, in
12:50
the Fiat system. Obviously, I think we can, we
12:52
can acknowledge that there is, though we do have a bias.
12:55
We are bitcoiners. This is, you know, we look at
12:58
everything through the lens of Bitcoin versus Fiat system or
13:01
the Fiat money. And you know, maybe we're
13:05
connecting some dots that aren't necessarily there, but excuse
13:09
me, it, it is an interesting stark contrast that we are
13:13
seeing happen in real time. And to add on top of all that
13:17
stress, again, like I mentioned, we're seeing very interesting
13:21
stuff happen in the oil markets, particularly with, with the, the
13:25
war happening and what happened over the weekend.
13:28
I'm I'm not going to play any of the videos for you guys, but if
13:31
you're on Twitter, you seen the videos there's black rain.
13:34
They're literally videos of just the night sky with burning oil
13:40
and it's just it it's it looks a pretty apocalyptic to say the
13:43
least. It, it's a, it's a pretty
13:45
terrifying image to watch. And, and I really, it goes a
13:48
little further just to kind of go on a slight tangent here.
13:52
Like it is crazy that we are all on social media watching
13:56
potentially a World War happen in real time.
13:59
Like I, I really don't know if the human brain was wired to
14:03
really be monitoring the situation as closely as we are
14:09
because it, it, it truly is just insane to watch.
14:13
I mean, we probably saw it a few years years ago with the Russia,
14:16
Ukraine stuff. It's it's it's pretty insane to
14:20
be watching this all happen in real time.
14:23
Obviously there is a lot of different incentives for people,
14:30
some people stretching the truth, engagement, baiting,
14:33
etcetera, etcetera, other people to downplay it.
14:36
But I think when you watch all of this stuff happen, you're
14:38
like, whoa, there is some general insane chaos happening
14:43
in the world. And obviously the markets I
14:46
think are pricing that in. And we all know markets do not
14:49
like uncertainty. Now, on top of that, as Marty
14:53
Bent said, and I really like this tweet, is we have a double
14:57
whammy Black Swan event materializing with a potential
15:00
World War three. Obviously a lot of people don't
15:04
want to take it that far, though it does seem like that's where
15:08
we are. But oil shock, turbocharging,
15:11
inflation, I don't know if you guys noticed, but the oil
15:16
futures are going insane. They did correct a little bit,
15:19
but they went as high as $124 over the weekend and now they're
15:24
roughly around $100. And then all that is happening
15:28
as private credit markets begin to stumble.
15:31
What does that probably mean? It means the printer is coming,
15:36
whether they're going to print for this prolonged war, for the
15:41
midterms, what have you. I think it's.
15:45
Pretty safe to say that the money printer is turning on.
15:50
Do we know in what capacity? No.
15:53
Do we know when or where that money will hit?
15:56
No. But as the big corners have been
15:59
saying, like Lynn Alden, you know the big or Lynn Alden's
16:03
nothing stops his train. Larry Leopard is the big
16:06
Princess coming. With all of this news happening,
16:12
you definitely want to protect yourself.
16:14
And I'm guessing if you're here and you're watching a Bitcoin
16:17
show, then you already know what the protection is.
16:19
It is saving in Bitcoin. But part of our hope here is
16:23
that. People that might just be
16:25
casually falling along, they see all the writing on the wall and
16:30
it starts not to scare them into Bitcoin, but they start to
16:34
seriously take the advice of you need to have Bitcoin in self
16:38
custody or else who knows what might happen to your wealth.
16:45
I don't like to be a doomer. I know this is a little doomy.
16:49
I don't want to be the Fiat doomer here, but I'm just saying
16:52
as a Bitcoiner that it's heavily biased in Bitcoin that, you
16:59
know, I don't hold any Bitcoin, but if I did, I would be all in
17:02
on Bitcoin. It does make you wonder what is
17:05
actually going on in the economy and what is the best way to
17:08
protect yourself. Again, equities are going down
17:12
right now. They seem pretty toppy.
17:14
They're they're been red for the last couple of days.
17:17
Oil prices are going up. Add that with, I know inflation
17:21
is really low right now, at least the official numbers, but
17:24
energy prices are going up. I think oil prices went up 63%
17:29
in one month because of what's going on in Iran.
17:33
So there's there's general uncertainty.
17:35
Things are getting kind of out of hand.
17:37
We might be seeing problems in private credit markets.
17:40
All of this is making you wonder like, yeah, I should probably at
17:44
the very least take some of my wealth, put it in Bitcoin, at
17:48
least protect a little bit of my wealth in Bitcoin.
17:51
If if we see some kind of, you know, great panic recession, who
17:57
knows? I, I've been saying for a while,
18:00
you know, if things get worse, it might be depression level
18:02
stuff, but what do I know? I, I'm just comfy in Bitcoin
18:08
watching Bitcoin and trying to really parse all of the
18:12
information from all the other macro indicators and seeing how
18:17
this will relate to Bitcoin. Now with that being said,
18:21
obviously there is big contentions right now on whether
18:25
Bitcoin is impacted by the larger macro picture or is
18:31
Bitcoin still kind of doing what it's been doing with the four
18:35
year cycle. And I will cover that on the
18:37
news because we do have some big news updates for you guys that
18:40
are in Bitcoin. Some of you guys have been
18:41
telling me about this in the chat, but again, the truism, the
18:47
heuristic here maintains the signal that once you give your
18:52
money to an institution, to a bank, it's very hard to get your
18:57
money back. Now this could be a 21st century
19:01
bank run scenario playing out where more people want to redeem
19:05
their money. They're saying, hey, you can't
19:08
do that. We've seen this happen in the
19:10
past when the banks get in trouble, everyone does a bank
19:13
run. They try to get their money out
19:15
in the in at the same time. And obviously they don't
19:18
actually have your cash on hand. As the saying goes, the first
19:23
one to panic is usually the one that's safe.
19:27
Now, this isn't full blown panic signs.
19:30
I wouldn't want you to go full blown panic like realistically,
19:34
as you can see from this news, if you wanted to get your money
19:37
out right now, you couldn't even do that.
19:40
So I it's it's one of these things where you need to slowly
19:44
but surely be looking at what is my protection here?
19:48
How do I actually protect myself?
19:51
It is getting Bitcoin exposure, but further taking that Bitcoin
19:56
into cold storage, securing the keys for yourself because not
19:59
your keys, not your Bitcoin. And this is where the bigger
20:03
theme that I've been talking about on the show really plays
20:06
into what I'm saying right now. We are seeing, and I like to
20:10
call it an attack, but you, you could say it's just information
20:14
warfare. So I guess maybe an attack.
20:16
I, I guess I, I, I really crossed out what I said.
20:20
Wall Street does want to incentivize you to give up your
20:23
keys to your Bitcoin, as we can tell with what the 1,000,000
20:27
coins in ETFs here. Let me let me double check what
20:31
is the figure here? 1.601 million Bitcoin?
20:38
Oh wait, yeah, held by ETFs and exchanges mainly probably I I
20:45
think the number is about a million plus in the ETFs.
20:49
That's a lot of Bitcoin that is under control of Wall Street and
20:51
if they're having these issues and their other products, and I
20:56
wouldn't want to be holding these products personally.
20:59
I've been saying it for a long time, yes, part of me was
21:03
excited about seeing the institutions come in because I
21:06
was really hoping they'd pump our bags and here we are and
21:09
we're down 6, down to 60. Ki think it's like 68 right now
21:15
and we haven't seen. The price go up like we thought
21:19
it was. But they are doing a very good
21:21
job of dropping new Bitcoin products to incentivize more
21:25
people to give up custody of their Bitcoin for whatever
21:29
incentive structure that that wouldn't, you know, convince you
21:34
to let go of that Bitcoin. And if we know anything about
21:38
the prospectives from these ETFs is that is in the fine print.
21:45
That hey look. You might not be able to get
21:48
your Bitcoin back. Now.
21:51
Again, I don't want to fear monger, but it is at the very
21:57
least a very interesting thought experiment going on.
21:59
The hey, we're seeing what happens in Wall Street, in
22:02
private credit products. We're seeing what's happening in
22:04
the Bitcoin credit markets and we're seeing what's going on
22:09
globally. It's a lot, a lot to be
22:13
concerned about right now. And you want to be protecting
22:16
yourself. You want to make sure that you
22:17
have hit the exit boats. You have you're you're getting
22:21
out of the theater before it's too late.
22:26
You got to start today. You got to make sure you're
22:29
getting some capital into Bitcoin.
22:31
If these stressors are something we will look back in hindsight
22:36
and say, yeah, it was super obvious what was coming down the
22:40
pipeline. I'm mad that I didn't make my
22:43
moves before everyone else started to hit the exit door.
22:48
Now's the time to be preparing. Well, I mean, really, you should
22:50
have been preparing for a while. But us Bitcoiners, you know,
22:53
we've been doing this for a long time.
22:56
But my hope is that people will watch this video.
22:59
Obviously, I'm one person, I'm a YouTube.
23:01
It's like, as the saying always goes, if you're getting
23:04
financial advice from a YouTube, you probably have bigger, bigger
23:07
issues here, but it's definitely a warning.
23:10
It's definitely something that you should be concerned about.
23:15
Again, is it full blown panic time?
23:19
There's still debate for that there.
23:20
There's still potential runway for them to figure it out.
23:25
But if you're seeing it, like, why would you wait for someone
23:27
else to figure it out when you can take control of your own
23:30
money? That's kind of the big take away
23:33
here. If we are seeing a private
23:36
credit market collapse, Black Swan, multiple black Swans right
23:42
now in the world, you probably want some money that is outside
23:47
of the system because you never know what's going to happen.
23:50
And like I've been saying in the face of all of this, Bitcoin has
23:55
been pretty resilient. Now, obviously there is a bit of
24:01
concern or rather maybe a bit of a conversation of whether
24:07
Bitcoin is holding up really well right now because of people
24:12
wanting to get into Bitcoin, seeing the concerns and capital
24:16
flowing into Bitcoin, or whether it's like we're we're already
24:19
50% down. Like how much lower can we go
24:22
though? Famous last words, Obviously it
24:24
can go lower. Historically in bear markets it
24:26
does go lower, but the conversation is, is very
24:30
interesting and actually let me let me pull out a couple tweets
24:34
because I, I think it does make a pretty good case for what is
24:38
going on. Actually, there is a little bit
24:41
of debate whether this is happening right now or not.
24:45
And here's the first one, VJ this morning.
24:47
He goes equities down, go down, bond's down and Bitcoin is up.
24:54
Pay attention to relative performance.
24:56
It's a signal. Now we have TXMC who he's a
25:01
bitcoiner. I I'm like positive he's a
25:03
Bitcoiner, but he's also maybe a little more bearish on Bitcoin.
25:07
Or maybe he's a sober minded Bitcoin thinker.
25:11
And here's his take. Because when Bitcoin is already
25:14
down roughly 50% after five months, while equity stayed
25:17
resilient throughout, seeing it managed to hold up in a day
25:20
where equities are only down 1%, surprised it's not more isn't
25:25
nearly as notable as a lot of y'all are making it out to be.
25:27
It means it isn't very relevant to what's going on when you
25:30
really think about it. It has already wiped out a lot
25:32
of its positioning long before this conflict.
25:35
There isn't a deeper mean meaning.
25:36
A lot of y'all made similar mistakes in early 2022 when
25:39
Russia invaded Ukraine and there was a random pump amidst war,
25:42
chaos, the Oh my God safe haven. No, funny enough, Bitcoin was
25:46
also down 50% back then. Context matters.
25:49
Don't turn a molehill into a mountain.
25:52
You know you're, you're getting both sides of of the of the case
25:56
here. Hey, maybe it's just 'cause, you
26:00
know, Bitcoin is down 50% right now and it's holding up very
26:04
well obviously with buyers like Sailor right now.
26:10
And of course the interest from Wall Street and Wales are also
26:13
picking up the coin right now. It's you could make a case that
26:18
all of these things aren't relevant.
26:21
But I think as VJ said, the relative performance in the face
26:26
of all the general uncertainty, at least from a biased Bitcoin
26:29
of perspective, it is signal. It doesn't necessarily mean
26:34
everyone's getting into Bitcoin, but it was.
26:38
It's literally at times like this where at times like this
26:43
where you realize that Bitcoin was met for this exact moment,
26:50
everything going on in the world, Bitcoin was met for this
26:55
time. Well, it's also literally it is
26:58
like we have it now. In the past when we saw things
27:01
such in 2008 etcetera, we didn't have, we didn't have an exit
27:06
route to Bitcoin, we didn't have a Bitcoin.
27:09
And of course in the last what, 17 years, Bitcoin was kind of
27:15
too young to really fill that void.
27:18
But we are starting to see Bitcoin fill that void in real
27:22
time. Slowly but surely Bitcoin is
27:24
filling that role, whether it's the sailor products, whether
27:28
it's Bitcoin and cold storage, whether it is the permissionless
27:33
borderless, you know literally non physical characteristics of
27:37
Bitcoin. I think it's proven itself
27:41
really well. We're still very early to this
27:43
Bitcoin thing, but in the face of all of this, Bitcoin has been
27:49
very resilient and I'm, I'm equally surprised at what it has
27:55
been doing, considering that any time we've had any bad news,
27:59
Bitcoin has been naked first and foremost, because it is the most
28:03
liquid salable asset. We might be, we might be
28:07
changing that course, boys and girls, we we might be in a new
28:10
era now. I, I know that this time is
28:12
different. I always eat my words on this,
28:15
but it's very interesting to watch right now.
28:19
I think the macro kind of landscape is the most
28:23
interesting thing going on right now, whether that's a
28:26
geopolitical or what's happening in the macro economy.
28:30
That's the interesting stuff going on in the world.
28:32
I know it's not as sexy as some other news story.
28:35
It's it's not as interesting as like TMZ gossip, but it is it is
28:41
the great story of today of what's just happening on the
28:43
geopolitical level. So anyways, we might be seeing
28:48
the beginning signs of some kind of shake up in the not only
28:54
monetary order, but in Trad 5. Again, this could be one of
28:59
those moments where in a few months we look back and it's
29:02
like it's so obvious, but for all of us bit corners, we're
29:05
just sitting on the sidelines happy.
29:08
What's it happy? Unmoisturized, unbothered in my
29:11
own lane, stacking Bitcoin, watching everyone wake up to why
29:16
they need Bitcoin. It's an interesting time to be a
29:19
Bitcoiner, just to say the least.
29:21
It it's an interesting time period in the story of modern,
29:26
you know, humanity. It's very interesting where we
29:30
are right now and I'm just super happy to be a bitcoiner in
29:33
Bitcoin chilling All right guys anyways to keep the show going.
29:38
There is an interesting clip going around in regards to what
29:42
is happening in the Middle East. It is reminiscent of what we saw
29:46
in 2020 in the news. We have another Bitcoin
29:51
milestone that is really starting to show how scarce
29:54
Bitcoin is. And I, I, I'm, I'm going to play
29:58
by ear for the culture. So that's, that's the, that's
30:01
the layout for today's show. Quick commercial break and I'll
30:04
be right back. Today's episode is brought to
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OK, everybody, we're back. The current Bitcoin price is
32:20
69,000 and $30.00. That is a 45.3% discount from
32:25
all time high. The market cap at 1.38 trillion.
32:28
And I don't really know what's going on with Clark Moody's
32:30
dashboard right now, but this block height, the block height's
32:33
just been stuck on here. It is currently 940,000 and 16.
32:38
I repeat, 940016 is the current block.
32:43
Height. OK guys, I saw this from Michael
32:46
Krieger and let me let me just play the clip.
32:52
Let me, let me just play the. Clip for you guys.
32:55
This is a short term disruption for the long term gain.
32:58
Short term pain for the long term gain.
33:01
Short term pain be for long term gain.
33:03
We're going to have some short term pain with long term gain.
33:07
Short term pay for a long term gain.
33:10
Some short term pain, yes, but we've got some long term gain.
33:13
Short term spike for a long term gain.
33:15
Some short term pain for American consumers we may have
33:18
to deal with. That in the short term, short
33:21
term, and temporary. Temporary short term pain.
33:24
It's. Going to suck in the short term,
33:25
some short term pain short. Term pain We have to focus on
33:28
the short term. Short term, short term, short
33:31
term, short term and long term. Short term.
33:34
Hopefully this is a short term pain.
33:36
Short term is highly outweighed of the long term benefits.
33:39
Some short term pain for the long term gain.
33:43
Short term sacrifice for a long term gain.
33:49
Oh man, I don't know guys, this is reminding me of something
33:56
I've seen in the past. I don't know, it was so long
34:03
ago, but we've heard something very similar in in 2020, you
34:10
know, two weeks to stop the spread.
34:12
Everyone was saying that and it was a lot longer than two weeks.
34:17
OK. Now, obviously, we're starting
34:22
to see the official talking points being spread on corporate
34:27
press currently. And usually my initial reaction
34:33
is to always think the opposite of what you see coming out of
34:38
the official, you know, government mandate, what you're
34:41
seeing on the corporate press. And right now the narrative is,
34:46
hey, what's going on in the US? What's going on with the oil
34:49
prices, you know? As they said, it's.
34:51
Short term pain for a long term gain.
34:55
Now I do actually like the. The the rhetoric here and then
35:01
before you guys stir tomatoes, it is very interesting to see
35:06
politicians saying, hey, we got to have some short, short term
35:09
pain for a long term gain. And I know I'm repeating it
35:12
here, but I do like that idea. That's something Bitcoiners we
35:17
talk about constantly. Like, you do have to sacrifice
35:20
in in the present a little bit to, you know, do better in the
35:25
long term. And we haven't really heard too
35:28
much from politicians saying this in the in the recent years.
35:31
It's usually the opposite. It's very, you know, high time
35:34
preference. Hey, we got to do this now.
35:36
Like, forget about the future. What what was the other saying?
35:39
They would say debt, it's money we owe ourselves basically like
35:44
F the future doesn't matter. We we'll just keep rolling over
35:47
the debt. We don't ever have to pay it
35:49
off. It's like we deserve this now.
35:51
So it is interesting that we are hearing this short term pain for
35:54
long term gain. But I just I it it it is just
36:01
reminiscent of what we heard in 2020 is all I'm really going to
36:04
say. OK, that's all I'm saying it.
36:07
Feels like I've heard this before.
36:10
It feels like there is some kind of psyop happening, whether you
36:14
know what the truth is or what not, or what side of this you're
36:18
on ideologically. When you see everyone parroting
36:22
the same thing, all it makes you think is, yes, there is some
36:27
kind of propaganda machine happening right now and I should
36:32
probably think a little more critical about what's going on.
36:37
That's all I'm really saying. I, you know, I don't care where
36:40
it comes from, but when you see the talking points like this and
36:43
everyone is saying the same thing, it does make me at the
36:48
very least feel uncomfortable. And you're like, OK, what are
36:51
they trying to distract me from? What don't they want me to
36:55
question? And you know.
36:58
Maybe we're just getting better at social media where these
37:00
things can come out so quickly. It's it's just very interesting
37:05
to you, to say the least. Yeah, you guys are funny.
37:13
I heard you say several times that you don't have any Bitcoin.
37:15
Bullish Boomer. Yeah, facts, yes, exactly proof
37:22
the media is corrupt and have their agenda guys look, we.
37:28
Do they run their? Oh no.
37:29
Yes, we, yes, hard, hard. All we do, we are node runners,
37:33
OK, We actually I think everyone here has their own node.
37:37
We don't have an official simply node.
37:39
OK, I hope I passed your purity test anyways.
37:43
Anyways, there is I don't know if you want to say just
37:51
malfeasance at play. Malfeasance at play, sorry, but
37:54
there's there's something going on, right?
37:57
And one of the things that bit corners have been saying for the
38:01
longest time now, we really, you know, you as an industry, we
38:06
probably don't have the luxury to just ignore everything
38:09
because we are growing up and we are becoming part of the greater
38:13
conversation. But from a individual
38:17
standpoint, one of the things we always say is that you can just
38:20
opt out. You can just ignore all the
38:22
noise and just stack Bitcoin. This is kind of where I connect
38:27
the two ideas. It's we're seeing the the
38:30
talking points being laid out constantly.
38:33
They're going to repeat this until everyone basically gets
38:36
brainwashed into believing this. And part of my job here is to,
38:41
you know, talk about this stuff so that we can be aware of it,
38:44
so that you know what the psyop is.
38:47
I don't know where this ends. All I'm saying we're seeing it
38:50
play out in real time and it's very interesting.
38:55
And since you guys know, you guys yell at me a lot because I
38:58
do lean into the idea that I am a Bitcoin propagandist.
39:01
From one propagandist to another, when I see it happen,
39:04
you're just like, hey, I see the mechanism at play.
39:08
You're not that slick. We are in the information war
39:12
currently. You guys are all the frontline
39:15
soldiers. We are all a part of this and
39:18
it's definitely upon us to try to.
39:21
We don't have to necessarily counter.
39:23
All of the BS. But at times it is necessary to
39:28
highlight it so that people could maybe somehow wake up.
39:32
I know a lot of people hear this and they'll just agree with it.
39:35
They turned off their brains. But it's just very obvious to me
39:42
on this side of the camera to be like, yo, come on guys, just
39:47
come on. Copy as seen inside.
39:50
What's this mean? OK, All right.
39:52
Anyways, anyways, let's keep going.
39:55
I Yeah, yeah, Actually, Rusty Buckle, I am.
40:01
I'm not saying that this is new. That's not what I'm saying.
40:05
But anyways, the the comment here is I watch Vietnam more on
40:08
live TV news. This is not new, but it's good
40:10
for all ages to see it. So they know how real this is.
40:13
And it's not a video game. Yeah, that's kind of that.
40:16
That's kind of the point. It's not that it's new.
40:20
It's just that now because we are all on social media, or at
40:24
least us, you know, everyone that hangs out in the chat,
40:27
basically all of my friends, we're all chronically online.
40:31
You know, we Internet too hard, so it's very obvious to us, but
40:34
there's still a lot of people that aren't on the Internet as
40:37
much as we are. They aren't monitoring all the
40:39
situations with the one minute chart.
40:43
They're still completely oblivious to how the propaganda
40:46
games work. And it is very interesting.
40:49
You know, when I go talk to my parents a lot, they still watch
40:52
the corporate news. And it's one of those ideas
40:56
where I think once you do unplug from all of the noise, you go
41:02
back and you talk with your friends and family and you'll
41:04
realize like you are arguing with the television in the sense
41:07
like you are arguing with the talking points, that it's not
41:10
really an argument. You're just kind of talking to a
41:12
wall. If you look for it, you can see
41:15
it happening in real time. And that's what we're doing.
41:19
We're just watching this all happen in real time.
41:21
I actually was joking. Again, another little side chant
41:24
tangent. I don't know if I said this on
41:26
the show or I said it off the show, but I was saying something
41:30
last week again. I think I was on the show.
41:32
Maybe I just said it right off the show where I was like, yeah,
41:37
I've gotten to the point now everyone in my family thinks of
41:40
me as like a conspiracy theorist and I'm sitting over here being
41:45
vindicated on everything. I'm like, I'm I was right about
41:48
everything. I am right about everything.
41:50
Now I'm just kind of bored because what's the next
41:54
conspiracy theorist? Now everything's a conspiracy
41:57
theorist. And I'm like.
41:59
We we got to, we got, we, we, we got to pick and choose their
42:03
battles. Not everything is a conspiracy,
42:05
but it does seem like most of the things I used to believe for
42:10
decades is now becoming like a normal conversation point with
42:15
your normie friends and family. And at this point I'm like,
42:18
what's the next one, guys? What's the next sigh out?
42:21
What's the next conspiracy theory so that we can all be
42:23
aligned again on, hey, we're actually doing some
42:26
revolutionary stuff because right now I'm bored.
42:29
I'm like, I've been right, guys, I'm completely vindicated on
42:32
everything, OK, Vindicated on everything award.
42:37
I've been telling my friends and family these things for years.
42:40
And now they're coming to me with the craziest stuff.
42:43
And, and I'm saying that with this clip in mind, it's like,
42:47
OK, maybe we're starting to see the next psyop happen in real
42:50
time. Maybe maybe I'm going to get
42:53
inspired again. Maybe I'm going to have some fun
42:55
again. All right, anyways, let's keep
42:57
it moving. One more commercial break and
42:58
then we'll talk about a huge Bitcoin milestone that you guys
43:04
have been asking for in the chat.
43:05
Well, it's official. I'll cover it in one minute.
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45:43
Well, well, well, here we are. And Bitcoin has officially,
45:49
officially crossed the 21 million coins in circulation.
45:55
It is official guys. There's only a million, well, a
45:58
little less than 1,000,000 now, but only a million left.
46:01
A million Bitcoin left for the next 100 and what 14 years
46:08
scarcity and Bitcoin it's happening in real time guys.
46:13
So here's a chart. You guys have been asking for
46:16
this. As I told you, and though this
46:17
one is a little it's it's not fully updated.
46:20
I don't know oops wrong 1. So it says block high again
46:24
940,000 and six Mempool is saying we are at 940,000 and 20.
46:32
So it's a little back, but the point remains the same.
46:35
There's officially been 20 million Bitcoin mined, which
46:40
means the last million Bitcoin will be released from here until
46:45
2140. There's not that much Bitcoin
46:49
left, guys. We made it actually.
46:53
I have another really good chart and it and it really kind of
46:55
shows. Did I save it?
46:58
Yeah. Here we go.
46:59
Let me pull up glass nodes take on this and it goes 20 million
47:02
Bitcoin now exists. This took 6267 days.
47:07
The final one million will take 114 years.
47:11
Here's the time it took to reach over 20 million on chain
47:14
milestones on Bitcoin and you can see transferred volume
47:20
exceeds 20,000,729 days, total transfer exceeds 20,000,830
47:25
days, market cap exceeds 20,000,841 days, daily
47:29
transferred volume exceeds 20,000,880 days, and then daily
47:34
transferred volume exceeds 20,001,336 days. 20 million UTX
47:42
OS created 1398 days, 20 million UTX OS spent 1436 days,
47:48
etcetera, etcetera, etcetera, you see, and then we have 20
47:52
million Bitcoin, mine took 6267 days.
48:01
So what 17 years in we got to the 20 million Bitcoin mark.
48:07
Now, obviously when we talk about Bitcoin, we usually say 21
48:13
million hard cap, 21 million Bitcoin is all that whatever
48:17
exists. In practice, though, we really
48:22
do price in the 21 million without actually seeing all the
48:26
21 million. And I know there's some
48:28
arguments and people saying like, oh, Bitcoin has a real,
48:31
you know, Bitcoin does have inflation because coins are
48:34
still being released, etcetera, etcetera.
48:37
And what? Let me let me go on Clark
48:39
Moody's dashboard and let me see what?
48:41
I haven't looked at the realized inflation or what?
48:47
What's that metric here? I can't find it.
48:55
I can't find it on. I can't find it on his dashboard
48:58
right now. Where'd it go?
49:01
OK, don't know. Where'd it go?
49:07
I used to have it saved. I lost it anyways, it's under
49:12
one right the realize inflation and that's where I think a lot
49:17
of people get here. We go forward monetary there I
49:22
found it realize monetary inflation .83% or forward
49:25
monetary inflation .83%. So in oh sorry, in practice you
49:32
can say like there is an. Inflation rate to Bitcoin.
49:38
Like it's got the lowest inflation rate per SE, but
49:42
again, we all essentially price in the 21 million Bitcoin right
49:47
now. We know the hard cap supply, we
49:50
know how many there's going to be.
49:52
So we all kind of do the 21 million math when we talk about
49:56
Bitcoin, but we finally got the 20 million threshold we have
50:01
mine or released 20 million Bitcoin into.
50:06
The world. And the next million is going to
50:09
take 114 years. Now the other conversation is
50:13
obviously one, are people waking up to the idea of true scarcity?
50:21
I think we still have a long way to go in the idea of true
50:24
scarcity. And you can see a lot of
50:25
Bitcoiners essentially saying that once the world wakes up to
50:29
what true scarcity really means, what a hard capped asset is
50:34
really worth, then that's when you get the FOMO.
50:39
I think we're in the early innings of this.
50:40
And actually, I, I made-up my mind.
50:42
I know what we're going to talk about in the culture.
50:44
It's a recent clip that was on PBD and it it's just going to
50:48
further my point here that I still believe we are early to
50:51
this thing. There's a lot of data.
50:53
Points to show whether we are early into this thing.
50:56
And you might think that these are two conflicting
51:00
conversations. It's like 20 million Bitcoin
51:03
have been released. Bitcoins already hit 100K.
51:08
It's at 68 K right now. Like how can you say it's early?
51:12
Bitcoins been around for 17 years.
51:15
It's like how can you even with a straight face say that you're
51:18
still early to this thing? And it's really because so few
51:21
people really understand Bitcoin.
51:24
Like yes, people, some people are holding Bitcoin.
51:27
Yes, there is a budding ecosystem around Bitcoin, but
51:33
still a lot of people don't, even if they're holding Bitcoin,
51:37
don't really understand what Bitcoin will do, what it is,
51:41
what the impact is in the world. Unless you're down here at the
51:45
rabbit hole with us, unless you're, you know, obsessed with
51:48
Bitcoin like you and me are, a lot of people are still
51:52
hopefully ignorant of what Bitcoin is.
51:56
It's, it reminds me, and everyone said this before, I'm
51:58
not the first one to say it, but there's that one kind of
52:02
rhetorical tool of if you get 5 blind men to touch an elephant,
52:06
they're going to think it's totally different things.
52:10
And we're seeing this play out right now.
52:13
Different professionals in different walks of life all look
52:16
through, all look at Bitcoin through a different lens.
52:20
And depending on who you are, what your circumstances are, you
52:24
might view Bitcoin as something other than it is.
52:26
Even amongst Bitcoiners, we have debates on what Bitcoin really
52:29
is, what it will really do. But the point remains, 20
52:34
million Bitcoin officially released.
52:36
And this does bring up another conversation.
52:40
And I know Nico and I have had these arguments on the show
52:43
about the four year cycles, but I really like this tweet here
52:46
that really kind of explains, you know, maybe a further
52:49
explains kind of what I've been saying for a little bit.
52:52
Here we have APSK 32 and he goes, It seems reasonable to me
52:56
that halvings impacted available supply, which led to bitcoins
52:59
for your price pattern. Wait, it seems reasonable to to
53:02
me that halvings impacted available supply, which led to
53:05
Bitcoin for your price pattern. Now that 20 million slash 2120
53:10
million out of 21 million coins are in circulation, I don't
53:13
think they matter. Any remaining four year pattern
53:15
is some combination of group think and external seasonality.
53:19
I expect the pattern will become less useful over time.
53:22
Oh, I didn't pull it up, but I kind of, I think this is where
53:26
my, my view is on things are different.
53:30
Things have changed and I, I, I do believe the general direction
53:36
of, of this tweet that and, and that's kind of why, why I was
53:40
saying that these things are this time are different with
53:43
institutions coming in with the last having, because the amount
53:47
of Bitcoin that gets released now, it's not a significant
53:53
chunk to really change the dynamics and the economics of
53:57
Bitcoin. When you have institutions or
53:59
even one guy like sailor buying billions of dollars a Bitcoin,
54:03
it wholly offsets the amount of Bitcoin that is released daily.
54:07
And then once you add in a bunch of people buying Bitcoin, I
54:11
think this statement will be truer as time goes on.
54:14
Maybe we're not there yet. Obviously we did kind of hit the
54:18
four year cycle perfectly, but I think this is is directionally
54:24
correct. As we get further out away from
54:29
the initial four year cycle movements with the amount of
54:34
Bitcoin being less and less and less, the four year cycles I do
54:38
believe will have less of an impact.
54:40
Right now we still have the psychological impact of it and I
54:43
think that's kind of what played out.
54:45
And then further the, you can call it greed or what have you
54:50
from Wall Street, but I think they played into this idea and
54:54
they wanted to launch a lot of their Bitcoin products at the
54:57
bottom. So we are in an interesting
54:59
time. Not only is this a historic
55:01
moment, we have officially mined 20 million Bitcoin, but I do
55:07
also foresee that we will be seeing some kind of dynamics
55:11
change in Bitcoin. Obviously not like tomorrow,
55:15
like this isn't going to happen today or tomorrow or even this
55:18
year. I think slowly but surely we
55:20
will see that things will fundamentally change.
55:25
Again, it's going to be a slow moving train, but I do
55:27
directionally believe that this is is is true.
55:36
I don't know I'm I'm getting I'm getting I'm getting trolled
55:39
here. OK, OK, I'm getting trolled in
55:45
the chat. Anyways, to further my point,
55:50
there's a interesting clip going around from PBD, so I'm going to
55:54
end it on that today and. I'll be right back.
56:00
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56:03
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56:33
You can catch the latest buzz at Hive Digital Tech or at Hive
56:36
digitaltech.com. OK, guys.
56:44
Well, you know I can do whatever I want with the end of the show,
56:49
right? It's called the culture where I
56:51
can give Bitcoin takes on cultural moments, whether that's
56:58
the Fiat system failing, whether that's a meme review, whether
57:03
that's about Bitcoin culture, whether it's commentary on the
57:09
larger culture, or what's just playing out in the eye of the
57:15
masses. I, I, I can do all of that.
57:18
This gives me free reign to do what I want here.
57:21
OK. I, I am the dictator of the
57:24
culture segment and as I said, there is a lot of fun.
57:33
There is a lot of people talking about Bitcoin that maybe think
57:39
they understand better than they do and they completely dismiss
57:45
Bitcoin. And I truly believe that we are
57:48
still early in people's understanding of Bitcoin.
57:52
I think for the most part you like make up your mind about
57:56
Bitcoin. It's kind of like the sailor
57:59
journey where super smart guy, obviously billionaire rocket
58:04
scientist very famously came out and said, hey, Bitcoin's days
58:08
are numbers. Bitcoin's days are numbered.
58:12
And then now years later, he's the biggest Bitcoin bull.
58:18
Once you publicly make a stance on Bitcoin or against Bitcoin,
58:22
it is very hard to roll that back.
58:24
It is very, you know, you're you, you publicly say something
58:28
bad about Bitcoin, then a lot of people just dig in.
58:30
Now I saw this clip going around and this is your safe sum, bro.
58:39
And it's Terrence Howard who's been in the news for other
58:43
things. Obviously he's an actor,
58:48
probably you can say I don't really listen to actors when
58:52
they talk about Bitcoin. But he very famously came out
58:55
and said a few years ago where he made a huge splash that, you
59:00
know, he rewrote, rewrote physics and rewrote math.
59:03
And there's a lot of people trolling about this.
59:05
But he went on, PBDPBD is one of the biggest podcasts out there.
59:10
And this is his take. Just just let's listen to this.
59:14
And if this doesn't tell us we are still early, obviously you
59:17
guys will say, hey, just because one person said something about
59:20
Bitcoin doesn't necessarily mean there's a greater trend of this
59:24
is how everyone views big. I totally get that.
59:28
But the fact people are still saying stuff like this is just
59:30
like, we got a lot of work to do.
59:32
Anyways, here's the clip. Bitcoin is going to die.
59:36
I don't. I don't mess with it.
59:37
You think Bitcoin is going? To.
59:39
You touch nothing with crypto. I don't touch it.
59:41
Tell me why you think it's going to Well, I just got a call from
59:43
somebody couple days ago and said, hey, if you got
59:47
25,000,000, you know, you can make 75,000.
59:50
I just want to put it inside of an account to do some stuff.
59:53
And this is a friend of mine and I was like, do you realize that
59:57
that Bitcoin is still based on Fiat?
1:00:00
It's still been and and because the dollar is decreasing in its
1:00:04
value, because the uncertainty of war around, nobody wants
1:00:10
their money in something that can be wiped out with a with a
1:00:14
push of a button somewhere. I've I've just stayed, I've
1:00:17
stayed free and clear of it because it's been.
1:00:20
Dropping a great deal. Love it, love it, dude.
1:00:26
Such bear market vibes. It's I swear like if you guys
1:00:30
have been around for a while, it's always in the bear market
1:00:34
that we get clipped like this and it and then they always say
1:00:38
something similar. It's like, hey, I don't want to
1:00:40
touch this Bitcoin thing. I mean just look, it's been
1:00:43
dropping so much. Why would I touch that?
1:00:46
We've heard that forever now the first part I don't know that did
1:00:49
like I I don't I'm not really mad about him saying like yeah,
1:00:53
my friend was telling me if I put 25,000,000 in something I
1:00:57
could get like 75 K yield or whatever he was implying I'm
1:01:00
like, yeah, you know on that kind of a smart move.
1:01:03
It does kind of sound like a shit coin or some crypto scam
1:01:07
stuff like I I get that if it's too good to be true, it's
1:01:11
probably a scam. Like I I totally understand that
1:01:14
framing, but to say like I don't put my money in anything that
1:01:18
can just be shut off by a push of a button.
1:01:23
One, you can't just shut off Bitcoin by a push of the button
1:01:28
unless, you know, you shut down all the Internet.
1:01:30
But even then, Bitcoin won't die.
1:01:32
I actually saw, I think it was Francis Pouliot say, doesn't he
1:01:36
know that Bitcoin is literally in like nuclear bunkers so it's
1:01:40
never going away now? I think maybe that's what he was
1:01:43
implying again on Mind Reading, maybe because of the wars going
1:01:47
on right now, he was implying like maybe they'll nuke some
1:01:54
kind of critical infrastructure and Bitcoin won't survive that.
1:01:58
Maybe that's what he was saying, but it sounds like he's saying
1:02:02
that they could just shut off Bitcoin by a push of a button.
1:02:07
Now, I don't know how big of a button that would be, but for
1:02:10
them to be able to shut down all of our nodes, it'd have to be a
1:02:15
pretty magical button to say the least.
1:02:19
So that, that, that, that one, that one's interesting.
1:02:26
Now, what was the other thing he said in there?
1:02:30
I'm blanking because I was reading the chat.
1:02:32
I was reading the chat and I got distracted here.
1:02:35
What was what was the third thing he said?
1:02:38
It was in the middle though. He said get yeon.
1:02:45
He said shut it off, gang. I'm I'm blanking.
1:02:49
I'm completely blanking on what is the other thing I wanted to
1:02:53
say on it. Wow, it's Monday, guys, forgive
1:02:55
me. I'm completely blanking on it.
1:02:59
It's the big red button we're always told not to press.
1:03:01
Yeah, exactly, man. At least he didn't say quantum.
1:03:05
This is true. Let me see it.
1:03:06
I mean, I'm seeing if if if the chat will will spark what I
1:03:12
wanted to say. It's our job to meme the crap
1:03:15
out of these. Yeah.
1:03:17
See, this is today's meme real? We we we're going to meme them.
1:03:23
He's OK. OK.
1:03:28
I guess maybe. Maybe.
1:03:29
I Yeah. Dude, I'm so low on Rambros.
1:03:36
Oh, yeah. Yeah.
1:03:36
There it is. It's based on Fiat.
1:03:38
OK, Thank you. I knew it.
1:03:39
I knew someone was going to hit it.
1:03:41
OK. It's based on Fiat.
1:03:45
I actually as I kind of go, I want, I want to hear your guys's
1:03:48
take on this because I do hear some of you guys say that in the
1:03:51
chat all the time. You say like simply bitcoins, a
1:03:55
bunch of Fiat Maxis because we price Bitcoin in dollars and I
1:03:59
always crash out on you guys. I'm like, dude, what else do we
1:04:01
what, what else do we price Bitcoin in?
1:04:04
One Bitcoin equals one Bitcoin. I get it.
1:04:06
But it doesn't tell you what the purchasing power is.
1:04:12
For better or worse, that's kind of what we have right now.
1:04:16
You know, you can say $1.00 equals $1.00.
1:04:18
Sure, that probably makes sense to most people, but it really
1:04:23
doesn't explain the purchasing power of what $1.00 is compared
1:04:26
to what it was. And I think that's basically the
1:04:28
idea that I always try to get across.
1:04:30
It's like, look, what is a simple metric for people to
1:04:35
understand value? It's the dollar, whether they
1:04:39
understand what that means or not, it explains it very simply
1:04:43
for people. But this idea of it's based on
1:04:46
Fiat, is he saying because we price Bitcoin in dollars, it's
1:04:50
based on Fiat? I think that might just be a
1:04:53
complete misunderstanding of what Fiat is.
1:04:56
Again, Fiat literally means by decree.
1:05:00
It's it's government's telling you that their debt, their IOU
1:05:03
is money because they said so. So if we break down what Fiat
1:05:09
means, obviously Bitcoin isn't Fiat.
1:05:13
There is no one here decreeing that Bitcoin is money.
1:05:16
I mean, if it was up to me, I would, you know, if it was up to
1:05:19
me, I would decree that Bitcoin is the law or the money of the
1:05:23
land. It's the law of the land here
1:05:25
that Bitcoin is money. But I don't know what he really
1:05:31
means by saying that Bitcoin is Fiat.
1:05:34
Is he saying because we price Bitcoin in Fiat dollars that
1:05:37
it's based on Fiat? It just it doesn't really make
1:05:41
sense to me. Let me see It runs on Fiat.
1:05:43
Is that what he's saying? Chat saves Opti again.
1:05:47
Yeah, 100% thank you. Honestly, thank you, Jake.
1:05:52
You measure in cats intrinsic value like I'm a I'm AI say this
1:06:02
all the time and no one I don't even think people people crash
1:06:05
out on me when I say I'm like, look, nothing has intrinsic
1:06:08
value guys, OK. Like.
1:06:12
Everything is subjective. Maybe I'm just such a a Austrian
1:06:17
economist. I'm like, everything is
1:06:19
subjective, guys. If we've, if we've known
1:06:22
anything in the world right now, like there is no objective
1:06:25
truth. So you can't tell me something
1:06:27
has intrinsic value because of its objective value.
1:06:30
I'm like, dude, everything is subjective in the world right
1:06:33
now. We literally don't share truth
1:06:35
ever. No, no one has a shared truth
1:06:36
right now. Everything is subjective.
1:06:39
Let me see. Let me see.
1:06:46
I'm done with the terror tower. That's funny, but bitcoiners
1:06:51
need to start pricing things in Bitcoin to dollars to dollar
1:06:54
volatility. This item is $0.10 no matter
1:06:56
what the dollar is doing. I that's like your opinion, man.
1:07:03
I look, I like the I like that idea.
1:07:09
But if we're still going to see rapid price movements like we've
1:07:15
seen in the past, parabolic runs and brutal bear markets, it's
1:07:21
kind of hard to do that where we are currently.
1:07:23
I, I do like the fluctuating price of things right now.
1:07:27
It's like an exchange rate to me.
1:07:29
I look at the Bitcoin to dollar price like an exchange rate, you
1:07:33
know, hey, one month or one year your dollar's worth more pesos
1:07:40
and the next year the exchange rate or next month or week or
1:07:43
what have you, the exchange rate changes.
1:07:46
I look at the dollar price of Bitcoin as an exchange rate.
1:07:50
That's just kind of the mental model that I work with.
1:07:53
So like, I get the idea. I like what you're saying, but I
1:07:56
just, I don't think in practice that works because the market
1:07:59
will reprice based on the economic input of what it costs
1:08:03
to make that product. And I mean, look at every, every
1:08:08
huge Bitcoin transaction that's marked a historical moment in
1:08:11
Bitcoin. You know what?
1:08:13
I forget how many coins it was, but thousands of coins for a
1:08:15
Papa John's pizza today. You're like, yeah, that was
1:08:18
probably. Not a good trade.
1:08:21
You know, I have friends that bought in houses for hundreds of
1:08:24
Bitcoin. And today, yeah, you know, it's
1:08:28
a cool house, but that exchange rate doesn't work anymore.
1:08:32
It makes it, it hurts when you look back on it.
1:08:34
So I don't think that works. I like the chart I've seen that
1:08:40
was gold price and gold and German money on the same chart.
1:08:44
Is that the Weimar one? Is that the Weimar chart?
1:08:55
Yeah, there we go. Johnny gets it.
1:08:58
With this logic, he can't buy gold because it's priced in the.
1:09:02
Am I the only one that heard that?
1:09:03
I'm. I'm a wrap up on this.
1:09:05
Am I the only one that heard that?
1:09:06
It seemed like that's what he said, right?
1:09:08
Like Bitcoin is based in Fiat because it's priced in dollars.
1:09:12
Like I don't. It's one of those things where I
1:09:17
don't think you know the words you're using what they really
1:09:20
mean, because that's what it sounded like to me, unless he
1:09:23
was trying to make a bigger point.
1:09:25
And I've heard people say that that Bitcoin is also Fiat, but
1:09:29
it just made no sense to me. Like if this is the level of
1:09:32
discourse that we are, obviously he's a, an actor.
1:09:38
Yes, he's doing some science stuff.
1:09:40
Maybe you could say novel science things.
1:09:43
You know, I'm a huge fan of the Taurus.
1:09:46
You know, I, I love the Taurus, right?
1:09:49
I think it's interesting, I would love for a new
1:09:53
revolutionary math and physics to play out.
1:09:58
I'm I'm, I'm totally a fan for that.
1:09:59
But for now, I think there's consensus on what math and
1:10:03
science, or at least physics is. Now.
1:10:08
If there's breakthroughs, I'm very willing and open minded to
1:10:11
change my opinion. So look, Terence, I will leave
1:10:16
the physics and the math to you, but I won't be coming to you for
1:10:24
advice on Bitcoin. And I like Terrence Howard.
1:10:28
What's that? What's that one rapper movie he
1:10:31
did Hustle, hustle and flow. Hustle and flow was a banger,
1:10:37
bro. I think that's what it was.
1:10:40
So I you know, I got I still got some love for you, Terrence
1:10:45
Howard when it comes to hustle and flow, but you're your take
1:10:50
on Bitcoin is is is off yes, confidently ignorant, true, It
1:10:56
do be like that. It do be like that.
1:10:58
And I and I think actually that does bring up one last thing
1:11:01
before I hustle and flow. Dude, what a banger.
1:11:04
I'm going to have to watch that this week.
1:11:06
Freaking banger. I think that is an interesting,
1:11:11
interesting take here that they did do this.
1:11:17
A lot of people right now, they talk so confidently and I think
1:11:23
people might take that as them actually knowing what's going
1:11:27
on. And I think one of the things
1:11:30
that I do like about Bitcoiners is that yes, we're very
1:11:34
confident in Bitcoin. We're very confident that we're
1:11:36
right. And I'd, I'd say it on the show
1:11:39
constantly, but when we get new information, it's never that we
1:11:44
just dig our heads in the sand and ignore the new information.
1:11:49
We digest it. We see if it's true.
1:11:51
We see if it aligns with our first principles.
1:11:55
We see if there's a significant breakthrough.
1:11:58
Do I have to update my mental models?
1:12:00
Do I have to update or clear the lens of how I view the world?
1:12:04
And not to just throw Terrence Howard under the bus here
1:12:08
because I, I, he might be, you know.
1:12:10
I have a 42 IQ. He's probably.
1:12:12
Smarter than I am, but you do see a lot of people, whether
1:12:18
they have an incentive or, you know, a mis guidance, whether
1:12:25
they're paid by someone, they're just wholly convinced that
1:12:28
they're right. You do see a lot of people come
1:12:31
out and just talk very confidently about Bitcoin and
1:12:35
sometimes when you look into it, you realize like they didn't do
1:12:39
more than a 5 minute research dive, deep dive into Bitcoin.
1:12:43
They just like, you know, made-up their mind again, going
1:12:47
back to the sailor tweet in the sailor journey.
1:12:51
Very smart guy. He made-up his mind about
1:12:53
Bitcoin, said the exact same thing.
1:12:55
Literally. Bitcoin's days are numbered.
1:12:58
Finally got some time to sit down during the 2020 shut down
1:13:05
and was able to really understand what Bitcoin is, and
1:13:09
then he became one of its biggest advocates.
1:13:12
I think we're going to see a lot more of this happen in real time
1:13:16
anyways, guys, on that note, on that, yeah, I'm glad the whole
1:13:24
chat scene, house on the flat, it's a banger.
1:13:26
On that note, guys, I appreciate you.
1:13:27
I love you guys. I think Niko will be back with
1:13:31
me this week. I really don't know.
1:13:33
I'm dude, Just know I'll be here.
1:13:37
You know I'll be here. We'll be putting on the show for
1:13:39
you guys all week. Same time as always, Monday
1:13:41
through Friday. I do post a show at 12:16.
1:13:45
I usually go live around 12:40, but on that note, you guys could
1:13:50
keep yelling at me for being late.
1:13:51
But on that note, I really appreciate every single one of
1:13:55
you guys that rocked with us, that sticks it out, that hangs
1:13:58
out with us, that shares the show, that comments in the live
1:14:01
chat, that comments on the show, that likes all that good stuff.
1:14:05
I appreciate you guys have a good rest of your day.
1:14:09
Happy Mondays, I will see you tomorrow.
1:14:12
Peace out. Today's episode was brought to
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you by bitcoinwell.com, a Bitcoin only platform on a
1:14:19
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