Latest / Simply Bitcoin / Did The CIA Create Bitcoin to Control Us? Here's the Truth | EP 1484

Transcript

Did The CIA Create Bitcoin to Control Us? Here's the Truth | EP 1484 · Simply Bitcoin

0:02
It wouldn't be a true Bitcoin bear market without another
0:07
expert claiming that they know the that Bitcoin was created by
0:11
the CIA. Well, we got a new clip of
0:14
Professor Zhang and he's been one of the most popular people
0:17
on the Internet in 2026 and he's making some interesting
0:22
allegations about Bitcoin. So let's watch the clip.
0:25
I actually clipped up the whole 5 minute clip into two clips.
0:28
I'll play the first part and then as the conversation goes,
0:31
I'll probably play you the second part.
0:32
But here's the first part. Who do you think of Satoshi
0:36
Nakamoto? Well, I mean, they say that it
0:41
translates into Central Intelligence and the story makes
0:47
no sense, right? Because why would you spend
0:50
years, possibly decades in your basement creating a new
0:56
technology, the blockchain technology, and then just give
1:00
it for free to the world? And, right, that makes no sense.
1:06
It does sound a little ridiculous.
1:07
It sounds kind of ridiculous, right?
1:09
So then you have to ask yourself three questions.
1:11
First of all is who would have the technology and the expertise
1:17
to create something like a black blockchain?
1:20
Second of all, you have to ask who would benefit from this
1:24
blockchain creation? The third question you want to
1:28
ask is why would they keep it secret?
1:30
OK, And when you do game theory analysis, you look at all
1:34
possibilities. You end up with a deep state,
1:37
the American deep state. You end up with a CIA.
1:40
OK, So the first question, who would have the expertise and the
1:45
technology to create the blockchain?
1:47
Probably the same people who created the Internet, probably
1:49
some people who created GPS, DARPA, NSACIA, probably these
1:56
guys, right? Because the Internet blockchain,
2:00
it's, it's just more of an enclosed model of the Internet,
2:03
right? Where where the Internet is
2:04
open, the blockchain is actually closed up to certain members.
2:09
But everything is transparent within the blockchain, right?
2:12
So that's the first question. Second question is who would
2:16
benefit from blockchain? Well, the CIA because of two
2:20
things. One is surveillance where
2:22
they're able to monitor everything, right?
2:24
It's, it's almost like a Trojan horse if you were to use
2:26
blockchain. Second is like the CIA, it does
2:30
a lot of Black Ops. It it, it is a government within
2:34
a, within a government, right? It is basically outside of all
2:36
political control, but it needs a mechanism to financial
2:43
operations. It basically needs a monitor
2:45
operation and block blockchain is is a great mechanism to
2:49
finance a lot of a lot of of its operations, especially drug
2:53
trafficking. OK, Third question is why would
2:55
they keep it secret? And the answer is only if people
2:59
believe that this was transparent, open and beyond
3:09
authority, beyond political control, what does it have
3:12
value, right. So the moment people recognize
3:16
that this is a CIA operation, people won't put their money
3:20
into blockchain. People won't put their money
3:22
into Bitcoin. They'll do like, I mean, why
3:28
would I do that? You have to ask yourself this
3:29
question, where are the blockchain servers located,
3:35
right? Because I imagine if you're able
3:36
to control the hardware, you can also control the software.
3:38
I don't care what they tell tell me about open source and all
3:42
that. I want to know where the
3:44
databases are, where the servers are physically.
3:51
All right guys, like I'm I'm going to try to be nice here all
3:56
right, I'm going to try to be nice about it, but off RIP.
3:59
My initial reaction is this is midwit level analysis of Bitcoin
4:03
and for someone that calls himself a professor, you'd think
4:07
he would at least research Bitcoin a little bit.
4:10
This is like normie tier first level thinking on Bitcoin, in my
4:16
opinion. You know, the first part like
4:18
Satoshi Nakamoto translates to intelligence.
4:21
We've we've all heard that before.
4:22
I think if you've been in Bitcoin for a long time, this is
4:25
usually the initial flood lines that you hear.
4:26
It's like, oh, it directly translate to Central
4:29
Intelligence and therefore that's why the CIA or NSA
4:32
created Bitcoin and you're like, OK, whatever, dude.
4:35
Like, all right, cool. I don't know Japanese.
4:40
I can't translate this, so I'll take your word for that.
4:44
Now, I know a lot of people before I go even further, going
4:48
to listen to my breakdown of this and probably say, oh, there
4:55
wasn't that much depth in the rebuttal.
4:58
But I would argue that there's not that much depth in in the
5:01
actual analysis here like this is this, if this stops you from
5:06
buying Bitcoin, I I really believe there's no help for you.
5:09
OK, that that's my first take away.
5:11
But before we even get into some of the stuff he was saying,
5:16
maybe we should look into who Professor Zhang is quote.
5:19
You know, professor Zhang. So I just went on his Wikipedia.
5:23
I, I really don't know too much about Professor Zhang.
5:25
All I do know is, and maybe This is why I'm going to be a little
5:29
vindictive on this show is one of my really good friends.
5:31
He's a huge professor Zhang guy and he's been trying to have me
5:35
watch predictive history for months.
5:38
You know, he's like, go watch the 70 episodes of Professor
5:42
Zhang. They're an hour each.
5:45
I'm like, bro, there's no way I'm going to sit there and watch
5:47
70 hours of this guy like you're you're tripping.
5:49
Just give me like the TLDR. Just give me the short of this and I,
5:54
I just can't get into him. OK, I don't know what it was
5:57
personally. Again, maybe this is my bias,
5:59
but I, I just can't really get into Professor Zhang.
6:02
There was something about him that I just, I didn't resonate
6:06
with. OK, I, I can't explain it.
6:08
I just, I just didn't like the guy's content.
6:11
Now, I don't know, I feel a little bit vindicated on on this
6:14
side of this clip because I'm like, look, from our perspective
6:20
as a Bitcoiner, Bitcoin is a filter.
6:24
It is. And I don't want to necessarily
6:26
say an IQ test, 'cause he's probably, he probably has a
6:28
relatively high IQ, but as we always say, it is kind of an IQ
6:33
test. If you look at Bitcoin and you
6:34
come to these conclusions, then it really boils down to a couple
6:39
of things. Either you haven't really looked
6:41
into Bitcoin realistically, you haven't actually looked into
6:46
Bitcoin with an open mind and you kind of already made your
6:51
mind about Bitcoin and therefore this is where all these
6:53
conclusions come from. Or the harsher truth, maybe
6:58
you're not as smart as you claim to be.
7:01
That's usually how I view. It's like, if I can understand
7:04
it, you could say maybe you're dumb and that's why you fell for
7:07
it. Or it's just like, do a little
7:10
bit of research, bro. So it really seems like he's
7:12
done 10 minutes of research on this.
7:14
But anyways, let's go in. So I'm over here on his
7:16
Wikipedia and I think here is where we really start to maybe
7:24
understand who Professor Zhang is.
7:26
So in 2001, Zhang was contracted to conduct an undercover US
7:30
funded PBS documentary about the labor movement in China while
7:34
filming one such protest in Decking Queen.
7:38
Sorry guys. Zhang was arrested and detained
7:41
for two days before he was deported from China on June 5th
7:44
of 2002. A friend claimed that he was
7:47
accused of quote making illegal video recordings and suspected
7:50
of spying. No charges were filed.
7:52
In 2003, Zhang was allowed by Chinese officials to return to
7:56
China where he decided to abandon freelance journalism and
7:59
pursue educational reform instead at a quote high profile
8:03
schools. In 2008, Jiang initiated
8:07
educational reforms at Shenzhen Middle School in a push for a
8:10
more liberal system of learning how focused on creativity.
8:14
He has described himself as being the first person in China
8:16
to initiate such reforms. Now apparently he is a history
8:23
and philosophy teacher at Moon Shot Academy in Beijing.
8:27
So hey, look, it does look on the surface level if you if you
8:32
read this a little bit, it looks like he maybe studied at Yale,
8:35
maybe did a little 6 month stint at high school, Peking
8:40
University in Beijing. So maybe professor, at least in
8:43
our context, is a bit of a stretch.
8:46
When we think of a professor, we think of someone that teaches at
8:49
the university, not necessarily a high school or middle school
8:52
teacher. Maybe that's the first thing.
8:55
Now, in this context, I think looking at Professor Zhang's
9:01
rise is kind of important to look at.
9:05
And actually, Sophie said something very interesting this
9:08
morning and she was a basically drawing the parallels between
9:12
what we saw with Jordan Peterson.
9:15
Jordan Peterson, again, also, he is, was living in Canada.
9:19
He's a Canadian Chinese if you look at if you look at his
9:22
Wikipedia. And anyways, the only reason I'm
9:24
bringing these these connections, Jordan Peterson is
9:27
Canadian. He was a professor.
9:28
He got very big at doing these lectures in his college courses
9:33
that went absolutely viral on YouTube and the Internet.
9:37
And in recent times, you know, Jordan Peterson has had a little
9:40
bit of health issues. So that's, you know, we're not
9:42
we're not here to kick someone while they're down, etcetera.
9:46
But Jordan Peterson was the model, I think, for Professor
9:50
Zhang to have the rise that he currently had.
9:53
Not only is he Canadian, but he literally does a similar format
9:57
where it seems like he's making content in a college class.
10:01
And who knows if he's actually been talking in the class and
10:04
he's talking to students or is he just, you know, doing this
10:08
grift of him? And again, I'm I'm only being a
10:12
little vindictive because my friend loves him.
10:14
And now I'm like, I'm vindicated, at least from a, a
10:16
bias Bitcoin perspective. But he does these classes or
10:22
these lectures that went absolutely viral.
10:24
He's been clipped up. He's got a lot of social media
10:27
presence now, and everyone knows him as Professor Zhang, But I've
10:33
always had this view, and I know this is another Bitcoin hater,
10:36
Nassim Talib, but I really like his intellectual yet idiot
10:40
framing. I think it's such a good
10:43
rhetorical tool, a good mimetic tool in our tool bag, that when
10:48
you hear a lot of people talk, sometimes they sound very
10:52
intellectual. They sound very smart.
10:55
And then they get to a subject matter that might be outside of
10:59
their lane, and yet they still pontificate on it.
11:02
And you realize, wait, maybe they're not as smart as they
11:05
claim to be as their persona is. And I think this is one of those
11:10
scenarios. Now, I know for people that are
11:13
Professor Zhang fans, they're probably like, I don't really
11:16
care what a bitcoiner thinks about Professor Zhang.
11:18
Obviously they're going to cope to try to protect their bags.
11:22
And the CIA created Bitcoin and you're like, OK, sure, man.
11:25
If that's what stops you in the Big 26 from buying Bitcoin is
11:29
the idea that has been wholly been debunked in the last 17
11:34
years on Bitcoin that Bitcoin isn't created by the CIA.
11:38
And remember, we saw Tucker Carlson say something similar a
11:41
few months ago that went absolutely viral.
11:44
And yet here we are. This is constantly what you hear
11:48
in bear markets. This is constantly what you hear
11:50
in Bitcoin in general when it comes to the fear, uncertainty
11:53
and doubt of Bitcoin is this idea that the intelligence
11:56
agencies have created Bitcoin. And This is why you should stay
11:59
away from it because it's going to control you because they're
12:01
trying to sigh up you into buying into a system that's
12:04
supposed to free you, but in actuality, it's a system that's
12:08
going to control you. Now, that is a very real fear.
12:11
That is a very real concern for a lot of Bitcoiners, very hard
12:15
core Bitcoiners where we're all wondering, not necessarily is it
12:19
created by intelligence agencies, but further, are we
12:23
creating our own gilded cage here?
12:25
Are we creating our own golden handcuffs here?
12:30
And yet some of the smartest people that I've I've I've ever
12:32
met are literally working every single day of every single or
12:36
every single minute of every single day to ensure that
12:38
Bitcoin is the freedom protocol that we think it is.
12:41
Now, there is one interesting point of that clip that I do
12:46
want to hit on specifically. Obviously the first part.
12:49
We've all heard this before. Who has the tools to actually
12:52
create Bitcoin? Well, it's probably the same
12:54
people that created the Internet and the Internet came out of
12:56
DARPA. So the intelligence agencies
12:59
created the Internet and you're like, OK, cool.
13:01
But like at a certain point it grew out of that and now we all
13:06
use the the Internet. Are people out here seriously
13:09
saying, hey, I'm not going to use the Internet because the CIA
13:13
created it? That literally makes no sense.
13:16
When you put it in that context, it absolutely makes no sense.
13:19
So we're we're not even going to talk about that one because even
13:23
if you're steel manning this, this idea, at least in my mind,
13:27
it could have come out of intelligence groups.
13:30
It the theory that I like the best is, you know, CIA and let's
13:34
say white hat, you know, good people to put it nicely, maybe
13:41
work on Bitcoin and then they let it go free onto the Internet
13:44
because they realize it would help humanity.
13:46
Now that was one of the concerns that professor Yang says, like
13:50
why would someone do this for free?
13:53
Well, I don't know. There there is people out there
13:56
that don't do everything just for money.
13:59
There are people out there that do things because they
14:02
understand that this will fundamentally change the course
14:05
of history, that they see the problems of the world and
14:07
they're like, you know what, how is this the best way?
14:10
How can I get this software into the most people's hands?
14:13
Well, maybe I just distribute it on the Internet on the small
14:16
mailing list and if it catches on, it catches on and people
14:19
start using it and running the software, then it's not
14:23
happening from a top down perspective, but a more grass
14:26
roots movement. Sorry, I I got distracted.
14:31
I got distracted from from the chat.
14:35
Yeah. Well, that's his name, Professor
14:36
Zhang B. What's it?
14:40
BAG that that's his Instagram or social media Monica professor
14:44
Zhang that's what people watch predictive history by professor
14:47
Zhang that's his name. But yes, he is a high school
14:50
teacher. So professor might be a stretch
14:53
here. And and all right, that the the
14:56
one that really stuck out to me is this idea of the Internet
15:01
being an open system, but Bitcoin being a closed system to
15:05
those people that use it. It's literally a permissionless
15:11
decentralized software that means that anyone in the world
15:16
can run it. So that that point in and of
15:20
itself doesn't make sense to me. It sounds smart.
15:23
It sounds like he's saying something that is a, you know, a
15:26
silver bullet, a kill shot here. But when you look into it, it's
15:30
like Bitcoin is literally an open source protocol.
15:35
It is literally open for anyone to use.
15:39
Now, his very flippant disregard to open source I think is one of
15:43
the biggest tales. If the CIA created Bitcoin, what
15:49
is the main concern? Not necessarily just that it's a
15:51
surveillance protocol, but usually at least the second
15:55
order thinking is, oh, there's probably a back door to this.
15:58
That's why I don't want to put my money into this, because if
16:01
the NSA or CAA or CIA or any intelligence operation created
16:06
this, there must be a back door and they're going to hack this
16:10
system eventually. Well, open source development is
16:15
the one thing that makes sure that that's not the case.
16:19
Bitcoin has been open on the Internet for the last 17 years.
16:22
There's been some of the smartest developers in the world
16:26
literally combing through the code to make sure that there is
16:29
no such back door, that you can read the code, that you can see
16:33
what is happening in the code. Therefore the code is for like a
16:38
99.9% certainty exactly what we think it is.
16:43
So I think it's flippant disregard of the the open source
16:48
nature of Bitcoin. I think that's a huge red flag.
16:50
I think that's a huge tale. Whether he understands what open
16:53
source development is or not, the fact that he's like, I don't
16:57
care, that means nothing to me. It really in my head just
17:00
highlights that maybe he hasn't done that much research on this.
17:06
Now, the last point, I'm kind of blanking on what he said on the
17:08
last point. Why'd they keep it a secret?
17:13
That's like the most easily debunked part of this fund.
17:18
I don't know. I mean, if you were someone or a
17:21
group of someone's that were creating a protocol, a new money
17:25
that was going to literally parallel and compete with the
17:30
dollar, which is literally backed by the biggest weapon
17:37
system in the world. It's the world reserve currency.
17:41
Would you not create this thing in secret, release it
17:45
anonymously? Because then there is no head to
17:48
chop off if you understand even a little bit of the digital
17:55
peer-to-peer money history, the creation that the rather the
18:00
attempts to create something like Bitcoin, it has a 30 year
18:05
track record. And usually when those other old
18:09
systems, the precursor to Bitcoin failed is because there
18:13
was someone that can shut it down.
18:16
There was a centralized authority that shuts this thing
18:19
down because, hey, if you are in control of this, if there is a
18:22
figurehead, then all you really have to do is put that guy in
18:25
jail or threaten him to go to jail.
18:28
And then the whole system comes down.
18:29
Therefore, this was created in secret.
18:31
Not I wouldn't even say necessarily secret.
18:34
You know, the initial, or rather the the more broadview of how
18:40
Bitcoin was created, It was created by a single person.
18:42
I wouldn't necessarily say that him coding it, you know, at
18:45
night is him creating it in secret.
18:49
It's just a dude working on a project and he needed to make
18:51
sure that the Bitcoin system worked exactly as he thought it
18:55
was before he released it into the wild.
18:57
So you could say it was built in secret, but in reality, at least
19:02
based on our common understanding of how Bitcoin was
19:05
created by a single person, it's a guy that wanted to make sure
19:09
all the bugs were fixed before he released it into the world.
19:12
But going further, the bigger idea is this is exactly why
19:17
Bitcoin was created anonymously, because now there is no
19:21
figurehead, as we've seen in the last couple of weeks.
19:24
It was on the Wall Street Journal, right, last week where
19:27
they were making this big noise about who the creator of Bitcoin
19:34
is that they finally found Satoshi Nakamoto.
19:38
And from all of our perspectives, we're like, you
19:40
guys are wrong. But further, it doesn't matter
19:42
who created Bitcoin. That is the point of this.
19:45
You do not want to know who Satoshi is.
19:48
That is the point. The only thing Satoshi asks
19:51
after basically, if Bitcoin happens and does what we think
19:55
it's going to do to free the world from Fiat slavery, is he
19:59
wanted his privacy. But it is something that's very
20:03
interesting that when you come to Bitcoin and you're new, you
20:06
always want to understand who created it because it's like,
20:09
well, I don't know who created it.
20:11
Maybe some bad guy created it. And maybe it is a trap, a honey
20:14
trap, a honey pot. And who knows what's going on
20:18
with the code. And it's like, yeah, I get it.
20:19
I'm not a big developer. I'm not a coder.
20:21
I can't really parse through the code.
20:24
But they're smarter people than I that have.
20:26
And from all we can tell, the code is what the code is.
20:30
And that's the point that the code speaks for itself.
20:33
It's not about the man, it's about what Bitcoin is as a
20:37
protocol and a network. So look, I think a lot of people
20:41
think that Professor Zhang is 1A Professor is incredibly smart
20:45
and that him opining on Bitcoin really had some weight to it.
20:51
We've seen this happen so many times in Bitcoin and it really
20:56
makes me think we're living in Groundhog Day, dude, eternal
20:59
September is just going to be brutal.
21:01
We're going to be dealing with all of these floodlines for I
21:05
don't even know for a long time. And I think they're always going
21:08
to kind of show their head again every bear market when the price
21:12
is down. And I think this is where the
21:17
real reason for this because I, I don't know if you guys saw
21:20
this as well. I was going to play this on the
21:22
show, but I I don't really need to make the whole episode about
21:26
FUD busting here. But on the very same day, we saw
21:29
a clip from Jon Stewart with Ben McKenzie, who is notoriously a
21:33
Bitcoin hater, essentially doing the same thing that Professor
21:36
Zhang is doing. They're trying to scare people
21:39
away from holding Bitcoin. Now, to me, this is the biggest,
21:44
biggest signal. I think this is what is going
21:46
on. He asked the question, who
21:49
benefits the most from people using Bitcoin?
21:56
I want to flip that. Who benefits the most from
21:59
people not using Bitcoin? I would argue it's the very
22:04
people that Professor Zhang is pointing as the creators of
22:06
Bitcoin. The very people that don't want
22:09
you to use Bitcoin are the very people that control the system
22:11
as it is. So why are we seeing a lot of
22:13
this? I would argue coordinated FUD,
22:16
organized FUD around Bitcoin all happening at the same time.
22:22
Dare I say the P word? Dare I say we are seeing
22:25
coordinated psyops happen in real time and a lot of people
22:29
with vested interest in the system working to scare people
22:35
away from Bitcoin. Maybe this is my bias showing.
22:39
Maybe this is my religious cult following of Bitcoin as they
22:45
talk about in the next clip showing and me protecting the
22:51
system that I'm so invested in that I think will help humanity
22:56
possibly. But we've been covering this
23:00
idea for a long time on the show that as we start to progress
23:05
into the end of this decade and as we start to see doubts in the
23:09
Fiat system grow and further Bitcoin, not only number go up,
23:14
but adoption levels grow. We're going to see even more
23:17
coordinated fight attacks on Bitcoin.
23:19
And we're going to see more people that are trusted that
23:22
have, you know, either long term success in social media and
23:27
entertainment and maybe, you know, again, very suspicious
23:31
rises on social media come out and say, hey, don't touch this
23:36
Bitcoin thing. We are starting to see that the
23:40
psyops, the coordinated attacks on Bitcoin, the concerted
23:44
efforts to push people away from Bitcoin start to accelerate.
23:48
It's starting to grow and I think this might be the biggest
23:52
signal out of all of this. Again, this is a Bitcoin show.
23:55
I am a bitcoiner. I've been, I've committed my
23:58
entire life to Bitcoin. But when I see multiple clips
24:03
and, and you know, I like Jack Neal, I, I like his podcast, you
24:07
know, I, I don't really fault Jack Neal on this.
24:10
Maybe he just thought this is going to be some good content.
24:12
But when you see a lot of clips from different people come out
24:16
around the same time, basically saying the very same thing, you
24:21
start to ask yourself as a bitcoiner, why are we seeing
24:24
this coordinated effort to stop people from going into Bitcoin?
24:28
Especially at the time, which I will cover a little later on the
24:31
show, when we're seeing institutions start to allocate
24:36
significant capital on the Bitcoin at the very time when
24:39
we're at a bear market, retail has been completely washed out
24:42
of the market. Institutions are trying to come
24:44
in. We're starting to see even more
24:46
social media campaigns to scare people away from Bitcoin.
24:51
Those are the things that make me go interesting.
24:54
OK, maybe it's not so much about the FUD lines around Bitcoin,
25:01
maybe it's a lot more about the timing of why this is happening
25:05
Now. Again, I'm not necessarily
25:07
saying that Professor Zhang is part of a coordinated SIOP
25:12
campaign to scare people away from Bitcoin.
25:14
I'm just saying we're seeing a lot of coincidences here.
25:19
We're seeing a lot of FUD against Bitcoin at the very time
25:23
when people are not only looking to Bitcoin, are not only feeling
25:28
a little better about investing Bitcoin, but institutions want
25:31
to get into Bitcoin as well. Now this doesn't necessarily
25:35
mean that Psyops are all coordinated from the top, but
25:37
what we do understand, if you understand anything about social
25:40
media and how Psyops work, the vested interest in the legacy
25:45
system does use a Nassim Talib's framing intellectual, yeah,
25:51
idiots to push their narrative. I truly believe that the
25:56
institutions right now, the Wall Street attack on Bitcoin is
25:59
accelerating. Yes, they are bending the knee.
26:00
Yes, they are trying to get as much Bitcoin as possible.
26:04
They're also trying to scare away the normie, the average
26:07
person from buying Bitcoin because they understand what we
26:10
understand. If you are not holding Bitcoin
26:12
in self custody, then he who owns the keys gets to do what
26:17
they want with the Bitcoin. So this is where my brain is at
26:21
when I watch these clips. This is where I'm starting to
26:24
see, and maybe it's because I'm on this side of the camera.
26:27
I am in the social media game, I am in the propaganda game, I am
26:30
in the media game. And when you see stuff like
26:33
this, you're always wondering, I well, maybe not everyone, but
26:35
I'm always wondering. I'm like, OK, what is the goal
26:39
of this? As Professor Zhang asked a
26:42
question in that clip, what is the goal of Bitcoin?
26:46
Cool. Well, to me, I I don't even have
26:49
to ask that question. I'm so far down that when I see
26:52
campaigns like this, I'm always asking, OK, what is the goal of
26:55
these campaigns? Who benefits the most from
26:59
people being scared to use Bitcoin?
27:02
And it's the very system that Bitcoin is set up to defeat, to
27:05
overcome. So maybe I'm seeing dots that
27:12
aren't there. Maybe my tinfoil hat is on
27:15
today. It's invisible, but it it might
27:17
be on. But that's what I'm thinking.
27:20
Again, I do maybe have a slight bone to pick with him because my
27:24
best friend, he's a huge Professor Zhang fan.
27:28
And anytime he talks about Bitcoin, I send him clips.
27:30
I'm like, yo, this is your boy. Like, come get your man's bro.
27:33
Like, how do you even watch this guy?
27:35
But again, I'm a bitcoiner. I make Bitcoin content.
27:37
So that's that's where we're at. But let's play the second part
27:41
of this clip. This one's a little shorter.
27:43
It's a little, you know, I'll just play.
27:46
I'll just play. It's.
27:48
Interesting, too, that it's, it's designed like a religion.
27:51
Yeah, I'll, I'll tell something else.
27:55
OK. Mark Zuckerberg.
27:57
That's what I was going to ask about.
27:59
Yeah. So Mark Zuckerberg had his
28:02
conflict with the Venom Voss, the Winklevoss twins.
28:08
Yeah, the Winklevoss twins. OK, And so the wink wink of a
28:11
loss twins sued Mark Zuckerberg, claiming that Zuckerberg stole
28:15
the idea for Facebook from them. OK.
28:17
And this went to court and there there's a settlement.
28:20
I I forget the amount. OK.
28:22
But then the wink of a loss twins took a sizable portion of
28:25
the settlement and put it all in Bitcoin.
28:31
Like we're talking about millions of dollars into Bitcoin
28:34
when it was like just a novelty. Why would people do that?
28:37
They're the largest individual owners today, I believe.
28:40
I don't know that, but I, I, I'm, I'm just saying like back
28:44
then, you know, when this was a novelty, when this was a niche
28:47
thing and these are not technologies, right?
28:51
How, why would they put millions and millions of dollars into
28:54
this thing? That's really strange.
28:58
Really strange guys. I don't know, maybe they just
29:01
understood what Bitcoin was going to do for the world and
29:03
what where it was going and that number was going to go up.
29:07
Even if they didn't understand the implications of Bitcoin and
29:10
the world changing effects that Bitcoin would have, maybe they
29:15
just thought, hey, it'll be a good investment.
29:17
Like you see, you see where these how do I say it?
29:22
You see where his analysis is going.
29:24
Like it sounds very smart, sounds very interesting.
29:28
It sounds like a deep insight, but in reality it's like bro,
29:35
it's like my analysis here in regards to what he's saying.
29:37
It's not that deep bro. Like it's really not that
29:42
intellectual. The Winklevis understood Bitcoin
29:49
before everyone else. Therefore they had a lot of
29:51
money from Zuckerberg, Therefore they put into Bitcoin and they
29:56
created one of the biggest exchange in Bitcoin.
29:58
They moved on to a new venture from Facebook to Gemini, but the
30:03
implication here is, oh, you know, Zuckerberg is part of the
30:07
intelligence operation with Facebook and someone that left
30:11
Facebook now is in Bitcoin. Therefore, Bitcoin is a CIICIA
30:15
operation. You see the logical leaps here.
30:19
It's it's very rudimentary and service level.
30:24
But anyways, I mean guys, maybe it's just because I've been
30:29
around in Bitcoin for a good portion of my adult life.
30:33
Now that there is nothing new under the sun, they're
30:40
constantly saying the same thing about Bitcoin.
30:44
If the quote CIA FUD scares you away from Bitcoin, then as we
30:50
always say, you will get Bitcoin at the price you deserve.
30:54
Bitcoin isn't stoppable. That's what it is.
30:57
Oh, wait, one last thing. I forgot about this portion.
31:00
I forgot about the portion where he's wondering who owns the
31:03
servers. Yeah, where are the servers,
31:07
guys? Who owns the ASICS, Bros?
31:10
Where are the ASICS? We have found the silver bullet
31:14
to prove that Bitcoin was created by the CIA.
31:18
Who owns the ASICS? Who owns the servers?
31:23
Does this guy not understand distributed computing?
31:26
Does he not understand what decentralization is?
31:28
Literally anyone that runs what that buys.
31:33
Bro, the A six are in in people's houses.
31:37
They're in mining infrastructure around the world.
31:40
Do I need to pull up the All right, let's do this.
31:44
Let's let's do the Luxor heat map.
31:48
Wait, I think I have it over here.
31:51
I don't know bro. Like you could literally search
31:54
on the Internet very quickly of who owns the the servers, Who
32:02
owns the ASICS? Here we go.
32:07
Here is who owns, here's where the servers are.
32:11
They're all around the world. They're literally at every
32:15
corner of the world. Majority.
32:19
Well, I wouldn't say majority, but a good portion of it's in
32:22
the US. There's some in Russia, there's
32:25
some in China. It's literally basically on
32:29
every continent in every country.
32:33
That's where the servers are. But hey, dude, he got us.
32:37
That's a big gotcha. Who owns the servers, guys?
32:41
Where are the servers? Where?
32:46
Where are the servers? They're everywhere.
32:49
It's as we always say, they're just not bringing their best.
32:55
But hey, Professor Zhang does have a huge following and and so
32:59
I saw someone in the chat ask who's the podcast?
33:02
His name is Jack Neal. He's like a Gen.
33:04
Z podcaster and he he's got a pretty big following.
33:08
I think this video got about 400 K views or something like that.
33:12
So you know, he's he's an up and coming social media guy.
33:15
So it is interesting actually one more point before before I I
33:20
move on. Now that I think about that, it
33:24
is very interesting. Professor Zhang went on Jack
33:27
Neal's podcast, basically a Gen. Z centric podcast, and here he
33:32
is basically scaring kids away from Bitcoin.
33:35
Scaring, scaring young kids, Gen.
33:38
Z kids away from the very thing that they're probably looking
33:42
for, the very thing that's going to help them escape.
33:44
Quote The Matrix, as is very popular on the Internet.
33:52
Maybe I'm seeing things. Maybe this is a ridiculous video
33:56
to debunk Professor Zhang, but this is some nefarious work.
34:03
Whether he meant it or not. The the road to hell is paved
34:08
with good intentions is all I'm going to say before I move on.
34:11
But man, where are the servers? It's funny that that's the big
34:18
gotcha. Where are the servers anyways?
34:21
As I told you, in the culture I'm going to or sorry, in the
34:24
news, we got a couple updates. It seems like the whales are
34:27
coming back on the table, boys. It seems like accumulation is
34:31
starting and the smart money is buying Bitcoin and in the
34:34
numbers. We got an interesting clip
34:35
coming out of Fox News, which is doing something very similar,
34:40
kind of a psyop campaign ish in regards to Bitcoin and Iran and
34:45
the implications. So that's the break.
34:47
Oh, and then I'm also going to get our boy Paul Tarantino AKA
34:50
Bitcoins Tom Cruise from Bite Federon today, very shortly.
34:54
So that's today's show. I'll be right back.
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se-ed.com store. All right guys, Paul, good to
37:11
have you man popped in a little early, but it's all good Join
37:13
the show man. How you been I'm.
37:15
Doing great. I'm doing great.
37:17
How are you? I'm.
37:17
Doing well man, I'm doing well all right guys let's get through
37:20
the numbers here we are the current Bitcoin price is 74,000
37:25
and $90.00 the discount from all time high is 41.3%.
37:30
The market cap is currently 1.48 trillion and the block height is
37:34
945,361. So as we've been covering on the
37:40
show for a minute, you know, an interesting side effect of the
37:44
war in Iran is that Bitcoin has gotten an almost surprising, you
37:51
know, showcase of what it does and what it's capable of and why
37:56
people would use Bitcoin. Well, we got a clip from Fox
38:00
News here and now they're talking about it.
38:03
And there is a little, you know, similar nefarious tinge to this
38:08
clip. But there is a positive side
38:11
effect here, which we have covered.
38:12
But I, I guess because it's coming from Fox News, we're
38:16
going to play it because it's not about what they're actually
38:18
saying so much as who they're saying it to.
38:22
And I think again, I continue the theme from the first clip or
38:26
the first segment of the show. That's a lot of the stuff that
38:29
that I noticed when I see a lot of this, I don't know, social
38:32
media coverage or either rather media coverage on Bitcoin.
38:36
It's who are they talking to and what are they?
38:38
What are they saying? And I think that might be the
38:41
most important part. But let me play the clip real
38:43
quick and then me and Paul will talk about it.
38:45
Second, they're said to be paid to Iran in Chinese yuan or
38:49
crypto. The Bitcoin Policy Institute
38:52
says bad actors are usually paying with stable coins, and US
38:57
authorities are cutting them off.
38:58
Watch. Stable coins can't be
39:02
confiscated, but they can be frozen.
39:04
So if you're a stablecoin user who's working with the Iranian
39:07
regime, your wallet can be identified.
39:09
If you don't practice good operational security and
39:12
Treasury can sanction you and make it so your stable coins are
39:17
moot. That runs in contrast to
39:18
Bitcoin, where you can identify what list of actors are using
39:22
Bitcoin, but you can't freeze somebody's Bitcoin in the same
39:26
way you can freeze somebody's stable coin.
39:28
And that is an unintended consequence.
39:31
I do want to say that crypto is a lifeline for many of the
39:34
Iranian people as they see the value of their currency get
39:37
devalued. But it's also a way that bad
39:39
actors do things and we're noticing it and, as I said,
39:43
cutting them off. Oh man, you'd love to see it.
39:48
You, you love to see it. I'm sorry.
39:51
Buddy, I can't hear you. Can you hear me?
39:52
Oh. Yeah, yeah, I got you.
39:54
Can you hear me? No, I'm.
39:56
Going to pop out, pop back in. OK, all right, cool.
39:59
All right, guys, let's. OK, what was the clip?
40:05
Yeah, bad people can use Bitcoin.
40:11
And from as we've been covering, you know, the the Strait of
40:15
Hormuz. Let me see.
40:17
Can you hear me now? I'm good.
40:19
OK. All right, cool.
40:20
Did you catch the clip? Did you catch the clip?
40:22
OK, All right, so it was just me.
40:24
It was just me having issues as we covered.
40:30
One of the big side effects or maybe unintended consequences of
40:33
the Strait of Hormuz closing was this idea that boats that were
40:37
going through oil tankers that were going to go through the
40:39
Strait of Hormuz were basically going to pay their fees in
40:42
either a stable coin backed by the yuan or Bitcoin.
40:47
And this was one of the things Bitcoins have been talking about
40:50
for a long time that hey, maybe there is a use case for a
40:53
neutral money, maybe enemies would want a politically neutral
40:57
money. And then we saw that happen.
40:59
Now it's interesting in this clip because again, who this
41:02
clip is going to, I don't know anyone probably under the age of
41:06
like 35 that watches Fox News. So this is going straight to the
41:10
boomers. So you can see that yes, they
41:12
are talking about Bitcoin in a way where it is scaring people
41:16
away from Bitcoin. It's like, hey, if you don't
41:18
like Iran, uh oh. If you don't like EU s s
41:24
enemies, then maybe you should stay away from Bitcoin.
41:29
Though there was a nugget in there, which I think is probably
41:33
the most interesting sound bite of this, which is it has been a
41:38
lifeline for a lot of Iranians, which is probably one of the
41:43
more interesting conversations amongst Bitcoin where we always
41:46
say Bitcoin is for enemies. It's like, look, you got to be
41:49
OK with your worst enemy using Bitcoin.
41:51
That is what it means to have a politically neutral money, a
41:55
money that is censorship resistance decentralized.
41:58
As long as you popped into Bitcoin, you can use Bitcoin.
42:01
Hell, when it comes to the dollar, there's people that the
42:05
US doesn't like that uses the dollar.
42:07
That's just kind of how it works.
42:09
Money is supposed to be a neutral thing that everyone
42:13
uses. But you can see, and we have
42:15
noticed a lot in Bitcoin and further in the, in the war
42:19
between Fiat and Bitcoin, that they do take this political
42:23
angle on Bitcoin as money. It's like, well, bad people use
42:27
Bitcoin. You probably don't want to use
42:28
it. And it's like, well, literally
42:31
the worst people in the world use the dollar.
42:32
And we don't, we don't say you shouldn't use the dollar.
42:34
It's just like, yeah, we take it for granted.
42:36
That's our money. So like it's really, I think, I
42:39
think the most important aspect of this clip is who's it, who
42:43
it's going to, which is of course, the older generation,
42:45
they might not be fully into Bitcoin, they might not be to
42:48
understand Bitcoin, but the conversation is happening.
42:51
And as we like to say, the Overton window is shifting.
42:54
Anyways, Paul, can you hear me? Am I right?
42:56
I'm good. I'm good now.
42:58
All right, bro. Well, you haven't been on in a
43:01
minute. I don't think you've been on
43:02
since the Strait of Hormuz Bitcoin announcement.
43:05
So what's your take on just that general idea and then maybe the
43:09
fact that we're seeing Fox News cover it and the Overton windows
43:13
shifting? Yeah.
43:14
Look at all technology can be used for good and bad, right?
43:17
Including your butter knife. So as we evolve through
43:23
inhumanities, technology changes.
43:26
They're going to be used by any number of people, but we need
43:28
fungible sound money. Fungible sound money has
43:31
provided a lot of benefits to people that were censored for,
43:37
for what I would deem to be, you know, passive or, or, or fairly
43:42
benign causes. The Canadian truckers was a
43:44
great example and, and their money was frozen and, and their
43:47
bank accounts were closed. I mean, Bitcoin Policy Institute
43:52
is correct in what they're saying, but that that, that
43:58
unfortunately that story, I've seen it changed around, right,
44:01
right. Like I saw yesterday on X Jon
44:03
Stewart going through the same topic and like throwing a hissy
44:07
pit because Bitcoin could be used by enemies.
44:11
It can also be used by, you know, good people trying to do
44:16
good around the world where enemies are are sanctioning the
44:19
delivery of resources, right. I mean, this is what Alex
44:23
Gladstein's all about. So the the bottom line is we
44:26
need unsensible money. And yeah, that's going to be
44:30
delivered. That has already been delivered
44:32
to the world. That cat's out of the bag.
44:33
When Satoshi open source this protocol, there was there was no
44:37
stopping it. So from this point forward,
44:40
that's the new reality we live in.
44:42
You need to I, I, I guess the the world needs to reframe the
44:46
way trade is done and it forces a friendlier negotiations and
44:51
looking for settlement as opposed to sanctions and war.
44:55
Yeah, 100%. And I actually did kind of brush
44:59
over the Jon Stewart news in the in the first part of the show,
45:04
but it's it, it really reminds me rather what I was bringing
45:08
up. Oh, we, we lost.
45:09
All right, all right. Well, I won't rehash the
45:13
conversation. I'm going to hit the the ad
45:15
break and we're going to maybe give you a little bit of bullish
45:18
stuff before me and Paul talk about what's going on with BITE
45:21
Federal man, or rather what's going on with the AARP and
45:25
Bitcoin ATM. So I'm going to hit the
45:28
commercial break and we'll be right back.
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OK, we're back. Paul.
47:20
Let's hopefully you don't get kicked off 11 more time.
47:24
If you do, just keep popping in and we'll we'll, what the Hell's
47:27
going? On.
47:28
Yeah, we'll, we'll make it work. Anyways, guys, I was going to
47:31
actually cover this yesterday, but I got a new headline that I
47:34
think really kind of sums up the conversation.
47:37
And this is on DL News. And it goes.
47:39
Institutions are scooping up Bitcoin again as Iran war
47:42
sparked $2.3 billion of ETF buying spree.
47:45
And just to read the blurb, here we go.
47:47
Institutional investors have poured 2.3 billion into Bitcoin
47:50
ETFs over the past four weeks. That's despite a market downturn
47:54
that shaved off half of the cryptocurrency's value.
47:57
And institutional investors are expected to pour up to 30
48:01
trillion dollars into Bitcoin by 20-30.
48:03
Ain't that a headline there, guys?
48:05
Another 13 trillion to Bitcoin. That's what, a minimum 10X of
48:10
the market cap here That sounds, that sounds kind of bullish.
48:13
I'm kind of for this. Look, you guys have yelled at me
48:15
before. The only reason, and I'm guilty
48:19
of this, the only reason I was OK with the institutions coming
48:22
is I thought they were going to pump our bags.
48:24
It it doesn't seem that that's played out.
48:26
Yeah, but hey, 13 trillion comes into Bitcoin.
48:29
I guess we'll all be happy in four years.
48:32
Uh oh. We're having troubles here.
48:35
We're having troubles here with Paul.
48:37
Yeah, sorry guys, my audio keeps dropping out so it's.
48:40
All good. We'll we'll figure it out.
48:42
OK, but check this out. Bitcoin wells are accumulating
48:45
at the highest rate in two months while it's holding 1000
48:48
to 10,000 Bitcoin have pushed their total supply to the
48:51
highest point since mid February.
48:53
You can see 27,652 Bitcoin accumulated in a single day by
48:59
while it's holding between 1K and 10K.
49:04
As we've been covering, it seems like retail one no longer really
49:09
controls the price. You could argue we probably
49:11
never really controlled the price.
49:13
It was really up to the whales here.
49:15
But this is one of the kind of rhetorical tools they, the memes
49:21
that you that you hear in regards to traditional trading,
49:25
follow the smart money, watch what the smart money is doing,
49:28
you know, follow the money and you'll start to see a clearer
49:31
picture that the markets are probably not showing you.
49:35
And this is one of those indicators in Bitcoin as well.
49:38
When you start to see huge whales come back in and buy
49:41
Bitcoin, it's usually a couple of signs, maybe a bottoms being,
49:48
you know, formed. Maybe it is people getting more
49:54
interested in Bitcoin. Maybe it's the next phase of
49:59
accumulation. But again, we've also seen a
50:01
long term holders are back to accumulating.
50:04
It's been, it's been a little while guys since October 25,
50:10
since long term holders are back to accumulating.
50:12
So we've seen a month of distribution here in Bitcoin.
50:17
Finally, we're starting to see the accumulations coming back.
50:20
The buying is coming back not just from the whales, but long
50:23
term holders here and it's starting to turn positive again.
50:26
Now on that note, as we've been covering this week, probably the
50:31
biggest news story of this week is what's going on with Stretch.
50:35
What Saylor has created with Stretch is absolutely insane.
50:39
Here is the updated numbers. We saw Monday $1.2 billion of
50:46
Bitcoin baht, Tuesday $1.6 billion of Bitcoin baht and then
50:52
yesterday we saw half a billion dollars of Bitcoin baht and then
50:57
the not full, you know, days of trading we see in 170 million.
51:03
So total so far for stretch accumulating Bitcoin is 3.4
51:08
billion so far this week. It looks like he might get to 5
51:12
billion a week. As I told you guys in the
51:14
beginning of the week last week Sailor got bought a billion
51:18
dollars of Bitcoin. This week he's might get to 5
51:21
billion if this amount of buying is just coming from stretch 5
51:26
billion a week. I, I, I want to say that we're
51:31
probably not going to be seeing a bear market for that much
51:35
longer. And on that note, we also saw
51:37
BlackRock buy half a billion dollars of Bitcoin in the past
51:40
48 hours. They now hold $59.31 billion of
51:44
Bitcoin. And this does bring in the
51:46
interesting conversation in regards to can strategy or
51:51
Michael Saylor surpass Blackrock's I bit holdings.
51:55
Well, it looks like BlackRock isn't going down without a fight
51:58
or at least you know, they're trying to incentivize that more
52:01
people buy Bitcoin. I think they want to maintain
52:04
the lead in regards to Bitcoin accumulation.
52:07
But again, one other slight little update that we covered.
52:10
Remember Morgan Stanley launched their Bitcoin ETF.
52:14
Well, Morgan Stanley has pulled in over $100 million into the
52:20
MSBT Morgan Stanley Bitcoin Trust ETF in its first week,
52:25
again marking the firm's most successful ETF launch ever to
52:31
date. Oh, wait, is this?
52:34
Let me see, Looks black on my screen.
52:36
Is this not showing up? Wow, dude, hold on.
52:43
Hold on guys. OK, there we go.
52:50
I don't know what's going on over here.
52:52
I guess my software's messed up. All right, well, we'll keep it
52:57
going. We'll keep it going.
52:59
Hopefully Paul comes back in. We're having all kinds of
53:02
issues. Anyways, please cover coffee.
53:06
Zilla next. He made a video basically
53:07
calling sailor and Stretch of a scam.
53:09
Yeah, I haven't. I I actually didn't watch that
53:12
video yet, but I saw a lot of people breakdown of it and the
53:17
TLDR from most people that I got the short of it that I got was
53:21
1. Coffeezilla is not really like a
53:23
bitcoiner, it's kind of more of like a shit coiner.
53:27
And I think the biggest blurb I got out of this is someone
53:31
saying, wow, Coffeezilla just realized what equity is like he
53:36
doesn't understand how stocks work.
53:39
So like, we'll see maybe, maybe tomorrow if if I get if I get
53:44
some time to watch the whole video and I can do a pretty good
53:46
breakdown of it. Yeah, maybe that maybe that'll
53:50
be tomorrow's show. But from what I saw, the main
53:53
contention is this idea that Sailor with the stretch product
53:57
has no actual liability to pay you back your Bitcoin.
54:02
And it's like, OK, yeah, that's that's basically what inequity
54:08
is anyways. Paul, are you back?
54:10
I'm back, but I don't know how long it's going to last.
54:12
OK. All right, let me, let me hit
54:13
the let me hit the commercial break and we'll cover what you
54:17
guys have been dealing with over at BITE Federal.
54:19
So I'll be right back, guys. I want to give a shout out to
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our partner Hive Digital Technologies.
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15% off anything on the store. All right, guys, hold on.
56:03
Paul just dropped off, but I'm like dude, I'm having the yo my
56:08
let me see if I can even bring Paul in.
56:11
OK, Paul, look, I'm having issues too.
56:14
All right, just let me see if I can just RIP it RIP it, go RIP
56:19
it. He can't hear me.
56:23
He can't hear me and I and I can't message him.
56:24
Guys, yo, my dude, guys, my streaming software is like
56:33
completely frozen right now, so let me see it.
56:36
Let's see. Paul, can you hear me?
56:39
Can you hear me? Yeah, it's only lasting like 30
56:41
seconds, so. Just just RIP it.
56:43
Just just RIP what you came to say and we'll say and we'll see
56:46
what happens. 10 four look at the the Bitcoin ATM industry,
56:49
which includes us is is under attack.
56:55
I you know, I know there's a lot of people in Bitcoin that don't
56:57
really understand the use case behind ATMs and what people in
57:01
this industry need to realize is that the ATM is essentially the
57:06
last bastion of peer-to-peer transactions in a non custodial
57:10
fashion. And by federal, you know, we
57:12
take all of our Bitcoin into inventory and we directly
57:16
transact with individuals to their self custodial wallets.
57:20
People misunderstand the industry because they see the
57:24
high fee. They don't understand that this
57:27
this industry is needs that high fee to survive.
57:30
We have an extreme amount of cost associated with operating,
57:34
building, manufacturing, operating the ATMs, maintaining
57:37
the ATMs, collecting the cash with Garda Brinks and Loomis,
57:41
paying host rent and then having that cash go through an
57:45
intermediary which verifies all the KYC AM L that's done on
57:49
those dollars before it goes back into the banking system.
57:53
We support the on and underbanked about 30 million
57:57
American families that are acquiring Bitcoin and for the
58:01
first time in human history, these individuals have access to
58:05
an asset that's growing at 40 to 50% kegger And if they didn't
58:10
have any, you know with you when you're under or unbanked, you
58:13
don't have access to investments at all.
58:15
This is what got us all excited about Bitcoin from the very
58:18
beginning that it was going to front run Wall Street and it was
58:22
going to lift humanity and that it was going to build wealth for
58:26
people that never had that capability in the past.
58:29
Bitcoin ATM support that and by federal we do everything we can
58:34
to protect our customers. So full bank compliance and we
58:39
go a step further and that we actually call every user who's
58:44
over 60 years old, we review scams that we know of with them.
58:49
We verify that it's going to their own wallet.
58:52
We verify that the the wallet that they gave us is actually
58:55
theirs and that they're not sending it to a fraudulent
58:57
address that's been involved in crime in the past.
59:00
We have discovered through many of those calls, which are all
59:03
recorded that many of these individuals are being scanned
59:07
and we've blocked those transactions.
59:09
So that's going above and beyond any legal requirement in order
59:13
to make a safe and secure way for our customers to transact.
59:17
In fact, we just ran data looking back since about last
59:22
looking back from when Bitcoin was about $65,000 and over 80%
59:26
of our customers are in profit because of Bitcoin, not because
59:30
of anything we do. The average transaction size is
59:35
under $500 and about 80% of those people are buying between
59:39
3 and 50 times. So these are dollar cost
59:42
averagers that are coming in and buying Bitcoin on the regular.
59:46
So they're long term savers and we're changing the lives of the
59:51
under and under unbanked everyday.
59:54
So we hope you'll join us in in this fight to educate the
59:57
legislators about the way Bitcoin works.
1:00:00
The value of Bitcoin ATMs for for those individuals.
1:00:04
And you can visit us at BITE Federal Fraud prevention.com,
1:00:09
bitefederal.com Fraud Prevention.
1:00:11
You can see all the research we've done on this topic, the
1:00:14
whole architecture of a scam and what we do to prevent them.
1:00:17
And there's three documents there you can download that give
1:00:21
you all the source material that we use to do this research.
1:00:25
And you can go, you can go check it out for yourself and share it
1:00:29
with individuals, share it with legislators, share it with with
1:00:32
people that are spreading misinformation just because they
1:00:35
don't understand the way the blockchain works and the benefit
1:00:38
of Bitcoin for humanity. So thank you.
1:00:41
Love it, Paul. Hey, Can, can you hear me?
1:00:43
Am I? Yeah.
1:00:43
I got you OK. OK, someone asked a question in
1:00:46
here and it's Doctor Daniel Howe and he goes under attack.
1:00:50
How so? Sure.
1:00:51
What exactly is going on so that people understand, you know
1:00:55
what? Like how we are as an industry
1:00:58
being attacked right now. OK, yeah.
1:01:00
Well I'll, I'll, I'll tackle that on 2 fronts. 1, There are
1:01:04
Indiana's already banned Bitcoin ATMs completely.
1:01:08
Tennessee, Minnesota, New Jersey, Massachusetts are in the
1:01:12
process. They all have legislation on the
1:01:14
docket to ban them that they're voting on shortly.
1:01:17
Other states have implemented a fee cap of 3%, which makes it
1:01:23
impossible for us to operate right when we charge that 20%
1:01:27
fee. At the end of the day, net our
1:01:29
incomes are running between 1 1/2 and 3%, and that can be
1:01:32
verified by looking at Bitcoin Depot's financials.
1:01:35
They're publicly traded. Other things are they're passing
1:01:38
legislation that would require full refunds.
1:01:42
And as anybody, we all know, Bitcoin cannot be returned,
1:01:45
right? A refund is when you return the
1:01:47
product, you go to Lowe's, you say, hey, this doorknob didn't
1:01:49
work. You give the doorknob back, you
1:01:50
get your money back. In this case, if somebody's been
1:01:54
fooled and scammed out of Bitcoin, we're supposed to
1:01:58
return the full fee plus the Bitcoin.
1:02:00
So we're expanding the loss into our industry who's doing
1:02:05
everything we can to prevent the transactions from having in the
1:02:07
first place. In regards to the bigger,
1:02:09
broader spectrum of this, Bitcoin is meant to be self
1:02:14
custody. If we've got 30 day, 60 day, 90
1:02:17
day holds on the Bitcoin because that's the refund period, we're
1:02:24
not going to be able to do self custody.
1:02:26
We're we're going to start at looking a lot more like an
1:02:28
exchange where we're holding your funds until which time
1:02:32
everything is cleared. Bitcoin is supposed to be
1:02:35
unsensible, unstoppable, and we want to deliver that Bitcoin
1:02:39
right to the customer's wallet when they request it.
1:02:42
It's a it's, you know, we, we cash for Bitcoin is at the core
1:02:48
of a peer-to-peer transaction. And we took the place of that
1:02:52
individual that you would meet at the coffee shop and became a
1:02:55
trusted corporate entity with an inventory of Bitcoin that could
1:02:59
sell it directly to you in a peer-to-peer fashion.
1:03:02
And we want to keep that culture alive in Bitcoin and we want to
1:03:07
provide these people with access that don't have access and any
1:03:10
other means. Love it, man.
1:03:12
Well, actually I don't love it. That sounds horrible.
1:03:15
And I know we talked about this in the wait am I am I am I here?
1:03:19
Can you hear me, Paul? Oh oh, I knew that was going to
1:03:23
happen. Oh man, what a bummer.
1:03:26
What a bummer. I'm I'm going to I'm going to
1:03:28
filibuster for a little bit. Maybe I'll pop back in real
1:03:30
quick and actually hear me. Here he is.
1:03:33
Here he is. Yeah, I can hear you again.
1:03:35
Sorry. OK, I know we talked about and
1:03:38
yeah, very quickly, I I won't ramble too long.
1:03:41
We, we did talk about this last time you were on the show about
1:03:43
two months ago and we were talking about how a lot of
1:03:47
people don't understand that they're still coordinated
1:03:49
attacks on Bitcoin. So, you know, very direct, dude,
1:03:54
what is going on? My software is so quick today.
1:04:00
Are we back? Are we back?
1:04:01
Yeah. I'm back.
1:04:02
Sorry. OK, Barry.
1:04:03
Bluntly, is this a coordinated attack on Bitcoin to slow
1:04:07
Bitcoin adoption so. I lost you at the end of the
1:04:11
question. You can hear me though.
1:04:13
So look at the the attack is misinformation because basically
1:04:19
to sum it up, they're saying the Bitcoin ATM operators are the
1:04:23
scammers. When you look at the
1:04:25
architecture of these scams, it's starting with the telecom
1:04:29
and voice over IP providers who are doing very little or no due
1:04:32
diligence on the people they're supplying phone numbers to and
1:04:36
they're doing no monitoring of the content of the call.
1:04:38
So 52.5 billion robocalls last year in the United States, about
1:04:46
14.5 billion in fraud due to those calls, and about 247
1:04:52
million of that ending up at the Bitcoin ATM industry.
1:04:56
What people understand is that it starts with that wide open
1:05:00
door at the telecom, it goes then to the bank where that
1:05:04
individual's instructed to withdraw cash, then ends up at
1:05:07
the Bitcoin ATM. When you get to that Bitcoin
1:05:09
ATM, we have two stickers in the front of our ATM describing
1:05:14
fraud, warning about fraud, telling people to stop doing a
1:05:17
transaction if anyone sent them there.
1:05:19
Our customer support line is there.
1:05:22
Then once you get into the ATM, we're scanning your ID, we're
1:05:25
getting all your data you're delivering, you're telling us
1:05:28
where you want that wallet sent. We're going to double check and
1:05:30
make sure that wallet hasn't been involved in fraud in the
1:05:32
past and we have all our terms of service and fraud disclosures
1:05:36
on the window and we move the buttons around so you you can't
1:05:39
be coached as to where the correct answer is on that
1:05:42
screen. After that, if you're over 60
1:05:45
years old, you're going to get a live phone call while you're
1:05:47
standing in front of the ATM. We're going to once again verify
1:05:50
with you that this transaction is for you, for your investment
1:05:54
purposes and that you haven't been instructed to send this to
1:05:56
anyone. We ask you what wallet you're
1:05:58
using. If you can't, if you don't know
1:06:00
the name of your wallet, we ask you tell us.
1:06:02
Tell us what it looks like if you can't describe what your
1:06:04
wallet looks like, it starts to get a become a very suspicious
1:06:08
call. We asked them twice.
1:06:10
Are you absolutely 100% sure that you're not being scammed
1:06:13
today? If we if we pick up any
1:06:16
indication that you're confused you're, you might be being
1:06:20
coached, we're going to block that transaction and our our
1:06:23
data, which by the way, all these calls by our trained
1:06:27
customer support staff. This is not mandated.
1:06:29
We're that we're just, we're doing it because it's better for
1:06:33
our users. We're protecting them and it's
1:06:35
delivering a client experience. We'll make sure they're safe and
1:06:38
secure. When if we find out that there
1:06:42
is any suspicion of fraud taking place in that transaction, we
1:06:46
block the transaction and all the calls are recorded so we can
1:06:50
share them with law enforcement. We've had people on recorded
1:06:53
calls that we've played for regulators and legislators that
1:06:56
show these individuals coming to the realization there's that
1:07:01
they're being scammed and then asking us directly, what do we
1:07:04
do with the $7000 that's in my pocket?
1:07:07
You go back and you deposit in the bank is our answer.
1:07:10
So we're we want to provide quality, secure transactions to
1:07:15
valid individuals that want to buy Bitcoin for their future
1:07:19
savings. They want to buy Bitcoin to
1:07:20
change their life. They want to get out of that
1:07:23
payday lending rut. They want to get out of that
1:07:26
paycheck to paycheck. They want to start to build up
1:07:28
some savings. And Bitcoin is the primary #1
1:07:32
best asset in the world to do that.
1:07:33
And the regulators are passing legislation that's, or I should
1:07:37
say the legislators are passing legislations this blocking
1:07:40
access in many of these states or will limit access
1:07:43
significantly and others. It's not good for humanity, and
1:07:47
it's not good for people who actually need Bitcoin the most.
1:07:51
Love it, Paul. The chat saying it's only
1:07:53
happening when I'm coming on the when I'm showing my my ugly face
1:07:56
here. So hopefully this still works.
1:07:58
Can you hear me? I don't think you can hear me.
1:08:03
Can you hear me, Paul? Oh, my goodness.
1:08:07
OK, I'm I'm going to do that one more time.
1:08:09
Hopefully it pops back in. I just want to ask him one more
1:08:12
question and we're gonna have to wrap up today's show a little
1:08:15
early 'cause I'm having all kinds of issues.
1:08:17
Paul, can you hear me? Yeah.
1:08:18
I got your back OK. Cool.
1:08:19
I just want to ask before we sign off, since you came on the
1:08:22
show, what can the audience do to, you know, help you guys or
1:08:27
or you know, I guess fight these, this attack?
1:08:30
Great, visit the website that you showed earlier, the bite
1:08:33
federal.com FOG fraud prevention website.
1:08:36
Educate yourself. Download these documents with
1:08:39
all the source data and the bibliography.
1:08:41
Share it with legislators in your community so that they
1:08:46
become properly educated on the way these scams really work.
1:08:50
Because a lot of the legislation they're passing will do nothing
1:08:53
to stop fraud. It just shifts it back into the
1:08:55
banking system, shifts it into gift cards, Zelle, PayPal,
1:09:00
Venmo, you name it. You know, last year there was
1:09:03
over 202, I'm sorry, 2 billion in bank fraud.
1:09:09
I believe we're talking about 247 million at, at the Bitcoin
1:09:14
ATM level. So the, the fraud is rampant
1:09:17
everywhere. But if you really look at what
1:09:20
we're doing in that in that website and you understand we
1:09:24
are doing more than anybody to actually stop this fraud dead in
1:09:28
its tracks. Well, Paul, that's super
1:09:32
unfortunate to hear. Wait, can you hear me?
1:09:34
OK. That's super unfortunate to
1:09:36
hear. Obviously, as we've been
1:09:40
covering on the show along a lot since last year.
1:09:43
You know, it seems like there's a pro Bitcoin.
1:09:49
Yeah, this is brutal. All right, guys, this is not
1:09:52
this is not me messing with you guys.
1:09:54
This is not Paul messing with us.
1:09:55
I'm having, I'm also having issues here.
1:09:58
Can you hear me, Paul? Yeah.
1:09:59
I got you back. OK.
1:10:00
I was just going to say, as we've seen in the last year
1:10:04
since Trump got in office, it seems like we had a more pro
1:10:07
Bitcoin friendly administration. But at the same time, there is a
1:10:10
lot of silent attacks happening right now.
1:10:13
And it is a very important time for Bitcoiners not to just be
1:10:16
complacent, not just to hope for number go up.
1:10:19
There is things that we can do like there is a war on not just
1:10:23
privacy, but also the grassroots adoption of Bitcoin.
1:10:27
And there is a lot of choke points going on.
1:10:29
It might not be choke .2 point O, but there seems to be dude,
1:10:35
there's a checkpoint on my streaming software today.
1:10:38
Oh man, all right, one more time, one more time.
1:10:40
All right Paul, can you hear me? I'm just I'm going to just give
1:10:43
you the floor. Let's do the final message to
1:10:46
the audience and and we'll just wrap up because this is brutal.
1:10:49
I I don't know what's going on right now.
1:10:52
All right. So final, final message guys,
1:10:55
this, this, this is important for the whole Bitcoin community.
1:10:59
We have to understand that if, if they chop off the, the
1:11:03
Bitcoin ATM industry, they've chopped off a whole leg to our
1:11:08
our network. And it's a leg that feeds
1:11:12
Bitcoin to some of the, the people that need it most.
1:11:17
You know, if you're living in the cash economy, you and you
1:11:20
don't have a bank account, you're not shopping on Amazon,
1:11:24
you're not opening up a, a trading account at Fidelity,
1:11:27
BlackRock, etcetera. But when you can go to a Bitcoin
1:11:32
ATM, buy Bitcoin and then go and go to bit refill and get an
1:11:37
Amazon gift card, now you have access to the digital economy.
1:11:41
And, and this, this is a lifeline for people that
1:11:44
otherwise are left out from what we all take for, for granted
1:11:49
every single day. I was just talking to Alex
1:11:52
Stanczyk and he, he told me a, a story about a guy who was
1:11:55
actually homeless, had had a child with another homeless
1:11:59
woman and they were feeding Bitcoin into small, very small
1:12:04
transactions. And over time it changed their
1:12:06
lives. This stuff as you know it, it
1:12:09
all of us have been in it for some time.
1:12:11
We know how powerful it is. And I, I, I do believe that
1:12:16
these legislators want to stop the fraud.
1:12:19
I just think they're misinformed and they need to understand why
1:12:23
some of the legislation they're passing is not going to have the
1:12:26
positive impact they hope it will.
1:12:28
And at the end of the day, we hope that by federal can be the
1:12:32
standard. We hope that our fraud
1:12:33
prevention techniques can stand out, that the rest of the
1:12:36
industry will adopt them, and that, you know, the the
1:12:40
financial infrastructure that we're building here in the
1:12:42
United States around crypto will understand that this is a
1:12:45
valuable tool for the most needy in the economy.
1:12:49
Let's go. All right.
1:12:50
Well, Paul, again, if you can hear me, I want to apologize for
1:12:54
the streaming software technical issues, but thank you so much
1:12:57
for coming on. I really hope that we can, you
1:13:01
know, get over this hump. Oh, man.
1:13:03
All right, all right, all right, guys, I'm going to wrap up
1:13:05
today's show. I'll see you tomorrow.
1:13:07
Hopefully our issues, our our technical issues are solved.
1:13:11
Wish me the best guys. I'll see you have a good rest of
1:13:14
your day. Today's episode was brought to
1:13:16
you by bitcoinwell.com, a Bitcoin only platform on a
1:13:20
mission to enable financial independence.