Latest / Simply Bitcoin / The 238 Day Bitcoin Consolidation is OVER!! | EP 1107

Transcript

The 238 Day Bitcoin Consolidation is OVER!! | EP 1107 · Simply Bitcoin

0:00
Yo, the wait is over. We've waited 238 days for this,
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but it's finally happened. I think Bitcoin has finally
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broken the consolidation of the last six months.
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We're sitting pretty at 72,606 dollar $6.
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Bitcoin has finally reclaimed the 72K region.
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Last time we were at these levels was back in March.
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But if history repeats, ladies and gentlemen, I think the next
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10 to to 18 months is going to be very, very, very special for
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Bitcoin guys. We have an incredible show lined
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up for you guys today. We have our special guest and of
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course my legendary Co host. Our special guest today is Frank
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Holmes. Frank Holmes is the executive
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chairman of Hive digital technologies.
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We're going to talk about that all stuff Bitcoin mining later
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on the show. And of course, my legendary Co
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host who's always optimistic optimist fields Frank.
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I mean as a Bitcoin miner, today is very special with finally
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these. Six months high.
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The Bulls were up. Oh.
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We've put it, we've put in the work, we've paid our dues, we've
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plugged in the minors, and finally I think we're getting
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rewarded for it. How does this feel?
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I'm so happy that you came on today's episode.
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Today's episode was the Breakout Day special.
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So how you doing, Frank? I feel blessed.
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I'm, I'm, I'm blessed to be with you guys.
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You all have great energy and it is an all time high and and I
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started this journey in 2017. Wow.
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I mean that's that we've come a long way.
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I mean, I think Opti pretty sure that's when we started.
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Yeah, that we were. We were, we were from that era.
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But just to kind of give you guys a perspective, I was
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looking at some data by a friend of ours, charts.
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I'm going to pull this up. Opti shared this with me this
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morning. I thought it was really
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interesting at this point four years ago, Bitcoin rocketed past
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13 K, boosted by a wave of extreme leverage that took it
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past 60 K This time we have ETFs with options that the trajectory
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may be different, but the rocket still looks ready to launch.
2:12
Buckle up. And I think this is what a lot
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of us are feeling, by the way, it's charts.
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Anyway, click that chart so people can see it better.
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Sure. Here we go, there we go.
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And just to kind of give you guys, it gives you guys
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different perspectives on where Bitcoin was in different markets
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and also charts. BTC isn't the only one saying
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this. We have the real plan.
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C says, congratulations, you've survived 8 months of
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consolidation, your reward 150K to 300K within the next 10 to 18
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months. So I think a lot of people are
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feeling this anticipation for 2025, especially, you know, this
2:51
election that's coming up next week or so, which should be
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interesting from a regulatory perspective for Bitcoin.
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It seems like all the stars and planets are aligning for this
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explosive 2025. Frank, what are you anticipating
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from the perspective of of the CEO of one of the largest
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Bitcoin mining companies in the world?
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How are you anticipating 2025? Are you taking every single day
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by day? I'm an inch by inch,
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everything's a cinch and and we're just very pragmatic of of
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how we built high. We function in nine time zones
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and we still come out as the most efficient miner.
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We have to translate in four different languages going to
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five for audit reasons, etcetera.
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We still come out as the most efficient miner.
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So I'm really proud of what the team has done.
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We hold a Bitcoin. We only source green energy,
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hydro and geothermal to miner Bitcoin.
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And I believe that over time those bitcoins will have an
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intrinsic greater value because they've never been into
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cyberspace and they've come from the original green energy.
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And that, to me, is like buying a Picasso or buying an Andy
4:02
Warhol piece of art. I love that and and let's talk
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about that Frank, because I think the the if you, if you, if
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you consume certain types of media, I'll I'll frame it that
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way. They would like to make you they
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would like to make you believe that Bitcoin mining could
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potentially be, you know, hurtful to the environment.
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But it seems like you've built an entire company that is only
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using renewable energies or green energy to mindset Bitcoin.
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What can we do as a community to get that message out there?
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Because I'm seeing it from a Bitcoiners perspective.
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I would say Bitcoin allows the roll out of green renewable
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energy without the need for government subsidy.
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I would say it's good for the green energy industry, the
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renewable energy industry, again, you know, this industry,
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let's just say it wouldn't be able to survive on its own
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without government subsidy. Bitcoin miners come in and they
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say, you know what, we have another use case.
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We're providing another use case, right?
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So, Frank, could you talk to us a little bit about that?
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Well, it's, it's a great question, you know, in the, in
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the journey of me being the Co founder of launching hive.
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I'm a money manager and, and, and I'm known for the world of
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gold. So it was easy for me to see
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that the Bitcoiners really read from the Old Testament that gold
5:22
bugs do that over time, governments will devalue the
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Fiat currency and it's just a matter of who does it faster
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and, and, and the damage it does to societies.
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But I, I in that journey, I tried to learn about Bitcoin
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and, and when I went to launch, I realized I couldn't launch an
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ETF. It was there was no way the SEC
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in 2017 be due to KYC AM L concerns was going to let it
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happen. I went to Canada, same thing,
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great concern. But when you're a Bitcoin miner,
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you're mining the virgin coin, you don't have a KYC and you
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don't have an AML problem. And I can turn around and mine
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that and put in my balance sheet, green and clean coins.
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So I said, OK, I'll put up the money to launch this
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immediately. Institutions came behind.
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Fidelity in the first two months, gave us $100 million.
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Other institutions end up giving us another 100.
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And Hive became the darling. That was first crypto money
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company to go public. Then we saw many companies go
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public. Since then, I think there's over
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20, but we've stayed very green and that's been hard.
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It's been a challenge to find big green energy in a
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jurisdiction that recognizes what we do.
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What we have done that's really significant is in 100 miles
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South of the Arctic Circle in Sweden.
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We have basically like a little ecosystem that the biggest sport
6:53
there is hockey. They have three NHL players that
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have won Stanley Cups. There are local heroes.
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So we sponsor 12 kids teams and the arena.
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So we have funded the expansion of the arena, and we're working
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on a Bitcoin modular unit to hit the arena because we're only 100
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miles South of the Arctic Circle.
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So we have done that in funding gaming, the gaming industry
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that's up there. Facebook is only 30 miles away,
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and it's the largest data center in all of Europe, so it's near
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the university. It's just a perfect little
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environment. We've done that again in other
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places where we sponsor the culture that's in that
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community. And so we've really been
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thoughtful that they like to call sometimes the ESG strategy.
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Well, we've done that from day one.
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We are proud that we have the lowest G and A to mine Bitcoin.
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You know, we only mine with green and clean energy.
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And we've also repurposed in Montreal, we heat a building
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with a 40,000 square foot building that was in the
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graphite business. We repurposed that and now we
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heat a building 200,000 square feet with 170 workers making
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whirlpools. So that same molecule of energy
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that mines the Bitcoin then transfers and heats of fluid
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that goes over and basically radiators for those in the South
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don't use radiators that to heat their house, but in the north
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it's a must. And so that's that's what we do.
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And so we have shown that and we were the first to balance the
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grid. Now Ride gets a lot of great
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publicity in Texas for doing it, but we've been able to do it in
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Sweden for many years where we help the community and the
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utility company doesn't have to spend a lot of money building
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another dam. When everyone in the morning
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turns on their toasters and has a hot shower or comes home from
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work, we're able in seconds to go from literally 15 seconds
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from 30 megawatts to three. Well, everyone turns on their
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toasters and then crank it back up.
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And so we use that surplus energy, which generates hundreds
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of $1000 a month of revenue for that community and it also saves
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the utility company. So I'm very proud of what you
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the question you asked is that we've been that sort of good
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poster child for that. I love that that it's, it's it's
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it's really interesting and I think it's something unique to
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proof of work mining, right? Because it you have all this,
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you know, a lot of people don't understand this, right?
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One of the misconceptions that you hear is that Bitcoin mining
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uses a lot of energy. It's like what energy is Bitcoin
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mining using Bitcoin monetizes otherwise stranded energy
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sources. And that's really that's the big
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breakthrough. And you're going to start to see
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a lot of innovation based off that just one idea because you
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have all this energy all around the world, but it's isolated.
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It's far away from population centers.
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It's far away from, you know, just big energy hoggers and this
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this energy would otherwise go to waste.
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And all of a sudden Bitcoin miners come in and they say, you
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know what, we're going to turn that into sweet, sweet Satoshi's
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and they monetize that energy. And people have been coming up
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with very, very clever ways. Like Frank just brought up a
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couple of examples. But you hear these stories about
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these greenhouses being warmed by Bitcoin miners.
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Why not? Why wouldn't you do that?
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What's the downside? There is nothing.
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Molecule of energy. Exactly, exactly.
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Anyways, guys, it's going to be a great show and get opties
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thoughts on this. We're going to move on to the
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number segment. The number segment, we're going
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to talk about the oh, you guys love this.
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You're making fun of me when I brought it up yesterday, but I'm
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bringing it up again. We have Frank in the house, the
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Bitcoin Overton window and the guys, we've made so much
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progress on this. You know, of course, El Salvador
10:54
making Bitcoin legal tender, the ETFs, you know, the, the
10:58
legitimization of Bitcoin in the eyes of, of, of legacy finance.
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This year, it happened this year, of course, Michael
11:04
Saylor's Bitcoin strategy. So many things have been
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happening and that's slowly been moving the Overton window, but
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it seems like we're all from the same class.
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The class of 2016, 2017, Boy, oh boy, were things different back
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then. We've made a lot of progress in
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in Bitcoin in the world of mining.
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And I just want to kind of recap that.
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So anyway, Opti, do you have some thoughts before we move on?
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Well, I really just want to give everyone in the chat a pat on
11:31
the back, or rather pat yourselves on the back.
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It has been, you know, a long, long sideways action.
11:37
I know everyone's getting testy out there on Twitter.
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It's like, when is this price going to do something?
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It's literally the Bitcoin meme. I was just like poking the
11:44
Bitcoin or like, do something. When are you going to do
11:47
something? And now we get a little pumped.
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I mean, Nico and I were kind of joking yesterday.
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It's like, man, I I think I'm dead inside because I don't feel
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anything. And now that Bitcoin starts
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pumping again, we're like, OK, we're back.
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This is why we're here. OK, this is fun again, It's
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going to get really fun. And really, I think
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realistically speaking, once we break out, I think the all time
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high in like March is was around like 73 six or something like
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that. So I'm kind of eyeing that once
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we break past that 74 K area, like what, you know, with
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significant volume, significant price push, we're in price
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discovery mode and we might just teleport up to 100K very
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quickly. So this is the best time to be a
12:27
Bitcoiner. It's always the funnest when the
12:29
price starts running. And I think this time around,
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considering all the things we've been talking about on the show
12:34
all year and, and I kind of got a sneak peek of what Frank might
12:38
tell us in the culture today. I think price discovery this
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time around, I, I don't think we're going to get a, you know,
12:45
2020 ish run. You know, we're not I, I think
12:48
this time might be different. I think we're going to see some
12:51
incredible price movements. As Samson Mao has been saying,
12:54
we might be seeing Omega candles finally, we might be in Omega
12:57
candle territory. It does seem like the Fiat
12:59
apocalypse, you know, the Fiat system is crumbling.
13:02
We know about the mainstream media.
13:04
They're they're kind of capitulating against independent
13:07
content creators and it just, it really does like Bitcoin is
13:12
finally entering that hyper bitcoinization era.
13:16
And I think the next four years in Bitcoin is going to be very
13:18
incredible. It really reminds me of the meme
13:20
of, you know, you, you overestimate what you can do in
13:24
two years, but you underestimate what you can do in 10 years and
13:27
just kind of, you know, collapsing that a little bit.
13:29
I think even us Bitcoiners, we still have PTSD and I think
13:33
we're underestimating what can happen in the next 4 years of
13:37
this next, you know, seemingly next 4 year Bitcoin cycle.
13:41
You know, I, I hate to be the guy here just because the price
13:43
is pumping a little bit, but man are we entering super cycle
13:46
territory. I don't know, I.
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Don't know, I'm just. I'm just given the hopium today,
13:51
but yeah, man, I'm excited. It feels good.
13:52
It feels good to be back. Nico, it's.
13:54
Going to be a great show. All right, there's 1200 of you
13:56
guys watching live. You guys are enjoying the show
13:58
so far. Make sure to smash that like
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button. Of course consider subscribing
14:01
to simply Bitcoin. It's going to be a great show.
14:03
Ladies and gentlemen, strap in, sit back, relax, enjoy the ride.
14:05
Anyways, before we get to, I want to give a shout out to our
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won 500 Satoshi's. All right, everybody, let's get
15:01
to the numbers we have. Let's talk about, let's check it
15:03
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At the time of recording the Bitcoin price is $72,570.
15:50
That's per dollar 1378 block height 867,952 Realize monetary
15:57
inflation 1.26% market cap 1.44 trillion Bitcoin versus gold
16:02
market cap 7.52% money supply 19,774,633 BTC percentage issued
16:12
94.16 percent. We're just getting the party
16:16
started. Anyways, like I mentioned in the
16:18
intro today I want to talk about the Overton window.
16:20
I know you guys were making fun of me yesterday when I brought
16:23
it up, but Elon brought it up. That's why I brought it up
16:24
yesterday. And then when I saw this, I'm
16:26
like, I have to bring it up today, today again.
16:29
So what are you going to talk about today during the numbers?
16:31
We're going to talk about the Bitcoin Overton window and the
16:36
person, the person who tweeted this said think about how far
16:38
we've come in 15 years. Consider the Bitcoin Overton
16:41
window continuing to shift towards hyper bitcoinization.
16:45
The future is speculative for sure, but this is not an asset
16:48
that you want to be short. As institutions purchase and
16:51
hold for the long term, the BTC available to trade will shrink
16:55
as the institutions put their holding into deep cold storage.
16:59
Demand increasing meets shrinking supply equals
17:02
parabolic price rise. Act according and here it it
17:07
shows you know what what has happened really.
17:09
So in the beginning, right. So the Overton window, for
17:12
anyone who doesn't know, is the acceptable window of discourse
17:15
and our jobs as as Bitcoin content creators, as Bitcoin
17:18
entrepreneurs, as Bitcoin miners is of course, move that Overton
17:22
window. So a lot of these concepts go
17:24
from unthinkable to policy. If I would have told you that
17:28
Bitcoin was going to be made legal tender in El Salvador, you
17:30
would have laughed me out of the room.
17:31
If I told you that the ETF was going to be approved, you would
17:34
have laughed me out of the room, right?
17:35
So this is what I'm talking about.
17:36
If you would have told me that the former president of the
17:39
United States, potentially future president of the United
17:41
States would have gone on stage and told everybody that Bitcoin
17:44
was going to be a potentially a few, a strategic reserve asset,
17:47
you would have laughed me out of the room.
17:48
So this is very important, right?
17:50
And it's very important that this continues to shift in our
17:53
favor like it has been. That's my two sats.
17:55
And I'm going to kind of take it back a little bit and talk about
17:59
the past because it wasn't always like this.
18:01
I remember back in 20/16/2017 when I got into the industry,
18:06
things were very, very different.
18:09
Frank, you're going to appreciate this.
18:10
I got in in the era of the S9. You remember the S9 legendary
18:14
ASIC legendary machine. Things were very, very different
18:17
back then. You could plug an S9 into your
18:20
home outlet and it would work. So, you know, now you need kind
18:25
of like, you know, dedicated infrastructure for mining.
18:28
I mean, technically you could still do it at home.
18:30
I just don't recommend it. So things have, obviously.
18:33
Had two cent electricity. There you go.
18:35
Yeah, so or you could just blow out your socket, which I've done
18:39
many times. But yeah, it's, it's things have
18:43
obviously changed. Bitcoin mining has obviously
18:46
become a lot more efficient. It's scaled.
18:49
It's become more worldwide. I think after the China ban,
18:52
it's decentralized. You can make an argument for
18:54
that. A lot of those miners went to
18:57
Texas specifically. That was one of the narratives
18:59
that everyone was freaking out about back in 2017, the 2017,
19:04
2017, 27/18/2018 era, which was the idea of mining
19:08
centralization in China. Obviously that was debunked
19:12
very, very quickly. I think you could have made the
19:14
case that it cost us the 2021 bull run.
19:17
You could make a case for that, but who knows.
19:20
Anyways, Frank, I kind of want to look back in time, reminisce
19:23
a little bit. Do you think we've made progress
19:25
as the industry, as bitcoiners, as Bitcoin miners?
19:28
Do you think we've come a long way?
19:31
Absolutely. If you go back and look at the
19:34
world of gold, gold stocks, and that's where I was originally
19:36
known for and, and when the GLD first came out as an ETF for
19:43
bullion, the regulatory world used to be so harsh on any gold
19:48
fund manager. You're buying gold stocks,
19:50
they're all scams, they're all bad, etcetera.
19:53
But when the GLD came out, the tone changed.
19:56
It wasn't that the industry is bad, It was what make sure
20:00
you've got clean accounting, clean this, clean that.
20:04
And, and I think that that's very significant for the Bitcoin
20:09
miners with the, the the. Unbelievable success of the
20:14
Bitcoin ETFs. As as you recall, I was trying
20:18
to launch this Bitcoin ETF and I was fortunate to go, I think
20:22
create hive. It's, it's how long has it
20:27
taken? Well, during that journey, it's
20:30
taken so many setbacks like China, It's so resilient.
20:34
What people don't realize is there's 195 countries in the
20:38
world, say 195 central banks, but there's over 18,000 nodes
20:44
working 24/7, validating and supporting the ecosystem.
20:50
So that system may get dented in one country like it was in
20:53
China, and all of a sudden it moves and it gets adopts.
20:58
And that's very much the biological models of of the sort
21:02
of complex adaptive system. It's already there.
21:05
And Bitcoin is part of one of the key case studies.
21:08
It'll be written in 10 years from now how that complex
21:11
adaptive system morphs and adopts.
21:14
And you get great companies like Jeff Bezos.
21:17
He started selling books. Look what he's become, and now
21:21
his biggest cash flow is data centers.
21:24
Well, if you're a Bitcoin miner, you're really in the data center
21:27
business. If you go in the AI, you're in
21:29
the data center business. He is more from selling books to
21:35
now being a hyper scaler of of incredible scale.
21:39
So I I think that that's a Bitcoin.
21:41
No CEO, no board of directors has grown to one almost $1.5
21:46
trillion asset class in in less than 15 years is incredible.
21:53
100%, Frank, you said something really interesting earlier,
21:57
which is you, you, you came from the gold world, you were known
22:01
for that, you wrote. Do you think that played a role
22:04
in you being able to identify the opportunity in Bitcoin early
22:09
on? I think so, as Steve Jobs always
22:12
said that you've got to have these different loves and
22:15
different passions and then try to connect the dots.
22:18
And can you connect the dots? And, and the other big part of
22:23
that journey was recognizing in 2017 that the CEO of Fidelity
22:32
with what almost $4 trillion in assets, she doesn't speak at
22:37
investment conferences. She's speaking at consensus
22:40
crypto event in New York City. That was a, to me was like, oh,
22:45
wow, there's something big is happening.
22:48
And, and seeing what was taking place there that people were
22:51
spending all this amount of money to get a ticket.
22:54
You wouldn't see that at a tech conference.
22:56
You wouldn't see that at an ETF conference for the retail
22:59
investor. But here you had institutional
23:02
retail people spending $1000 a ticket to attend.
23:06
So that was my first big wake up call that something else is
23:09
happening over here. And I started delving into the
23:12
research of demographics. And that's where I realized, you
23:16
know, I've started also mining Ethereum.
23:19
Well, you have 30 million kids that have gaming GPU chips and
23:24
they go to bed and we're plugging into mine Ethereum.
23:26
They generate A1 to two coins a year.
23:29
I had a paper route. These kids are coders or gamers
23:33
and all of a sudden they're making a couple $1000 a year
23:35
off. And, and to see that they were,
23:40
if they're good gamers, they were getting rewarded in digital
23:43
money. Well, they're, they're much
23:45
more, their heart and brain is In Sync with digital Bitcoin.
23:49
It's, it's much more than my generation as a baby boomer.
23:54
They're so upset about this. How could this take place?
23:57
Because they're oblivious to what's happening over here where
24:01
a kid 12 years old could be making up back in 2017 making
24:06
$1000 a year and could open an account.
24:10
He's told he can't open a bank account, but all of a sudden he
24:13
could turn around and and convert his Ethereum through a
24:17
wallet to be able to upgrade and buy some technology.
24:21
That was a big wake up call for me when I looked at sheer
24:25
numbers and I became, I just love the industry.
24:29
I love everything it it represents in my research.
24:34
What people didn't realize was that M pesa, you know what M
24:37
pesa is? M.
24:39
Pesa, Is that a Spanish word? M pesa is like the Bitcoin for
24:43
mobile operators to allow you to bank the unbankables.
24:47
So a telecom company in Kenya gets this technology and
24:51
originally blockchain was created for the telecom
24:53
industry. It was a time stamp mechanism
24:56
for the telecom industry. And, and so now M PESA comes
25:00
along and today in Kenya, it has 51 throughout this part of
25:05
Africa, sorry, 51 million users. Well, they've got villages that
25:09
people can't read and write, but they know enough math, but they
25:12
couldn't get a bank account. And all of a sudden they're able
25:15
to use their cell phones and it becomes the ability that's now
25:19
10% of the GDP of some of these countries in in East Africa.
25:24
So it comes on just before Bitcoin and then Bitcoin comes
25:29
out as really a wealth asset, not money.
25:33
And it's more centralized around the telecom, but it goes to show
25:37
to bank the unbankables and Bitcoin was that way also.
25:41
And so it starts to grow by by the technology sector and gamers
25:46
all around the world. But you can see the adoption in
25:50
very poor countries. So it's and Peso was much more
25:53
inclusive. Bitcoin is much more inclusive.
25:56
And you and I were at this conference last week in Plan B
26:01
and talk about mind boggling numbers that in America we
26:07
complain about the dollar and all the spending and every
26:10
hundred days a trillion dollars of money printing, But the rest
26:14
of the world want dollars. And last year was that for the
26:19
weekend that Messi became the president, not Messi the soccer
26:24
player, Miley Miley in Argentina.
26:28
And that weekend, it was interesting because the
26:31
ambassador for America was speaking and he said there's $25
26:34
billion of U.S. dollars in the pillows and mattresses in
26:38
Argentina. And that's what's keeping the
26:41
underground economy is keeping the country alive because
26:44
everyone wants U.S. dollars. I was a big number for me.
26:48
I did had no idea how big it was.
26:51
And Buenos Aires is beautiful. It's spectacular city.
26:54
How does it function with this high inflation on the back of
26:57
U.S. dollars? And then in that sort of, I'm
27:01
trying to share with you, I know about Bitcoin at lunchtime.
27:02
I still did not know about what's taking place in places
27:05
like Argentina. And now we find about Tether
27:09
with 300 million wallets, they said at the conference, 300
27:13
million, the population basically of America.
27:16
And it's all these countries that cannot open AUS bank
27:19
account. Since 2002.
27:22
In Argentina, it's illegal to have AUS bank account.
27:26
Well, they've to stop this oppression, financial
27:29
oppression. Tether has been the answer.
27:32
So we have this digitalized growth of $120 billion of a an
27:38
asset class, alternative asset class.
27:41
It only supports in in a much more significant way the growth
27:46
and potential Bitcoin. Of course, you know, it's, it's
27:50
a, it's a, the way that I see it.
27:51
Is it like specifically with because the original thesis was
27:55
from the Bitcoin or the Bitcoin community was in developing
27:59
countries, you're going to start to see the radical adoption of
28:03
Bitcoin, but the free market kind of showed something else.
28:06
It showed that in developing countries would people were
28:09
really adopting on in a rapid scale was stable coins.
28:13
And the reason for that is that they they needed something.
28:16
First of all, I think the educational component to it.
28:19
So if you're from, I'm originally from Venezuela.
28:22
If if you're from Venezuela, you get $100 bill, it's like Frank,
28:26
I know it's not the same, but it's like the equivalent to
28:28
holding a gold bar, right? It's very, very valuable in
28:30
those countries. So what what a lot of these
28:34
alternative non sovereign alternatives provide is instead
28:40
of you going to a bank bank and saying can I open a bank
28:43
account? A lot of these people don't even
28:44
have that possibility. They could just download an app
28:47
and all of a sudden they have access to dollars.
28:50
And then I believe that eventually, once you open that
28:54
door, that eventually leads to Bitcoin.
28:56
And the reason for that is it's simple.
28:58
I think Bitcoin is a superior current.
28:59
I mean, it obviously does that, right?
29:02
It's obvious for anyone who's paying attention.
29:05
So I think it's a kind of Trojan horse for people adopting non
29:11
sovereign alternatives and then Bitcoin is the best non
29:14
sovereign alternative. So it's like this one way Rd.
29:17
but it's really, really fascinating what's happening and
29:20
it obviously makes me really optimistic for a lot of these
29:22
countries because they would they were there was no other
29:26
capability or possibility for a lot of these individuals from
29:29
those countries to interact with the global economy.
29:32
They they were just shut off. You couldn't deal with them.
29:35
Forget about PayPal, forget about the you not gonna happen.
29:40
But with with stable coins and with Bitcoin, all of a sudden
29:44
you can have a bank in your pocket and you can interact with
29:48
someone across the planet. You don't even need to know
29:51
their name, right? It's it's an absolute game
29:53
changer. I think a lot of people are
29:54
sleeping on it. Anyways, Opti, before we move on
29:56
to the next segment, what are your thoughts on this brother?
29:58
Yeah, Well, obviously I got to troll you a little bit because
30:01
we they're doing the Overton window drinking game in the chat
30:04
right now and we're doing the whole, the whole episode on the
30:07
Overton Window. But just to that point, you
30:10
know, I also got in Bitcoin in 2017 and as much as the last,
30:15
you know, year or so of the sideways.
30:17
Actually, I guess it's like 2 years now, right?
30:19
It's been, you know, it's been a slow grind.
30:22
And, and when you're just kind of zoomed in on the moment, you
30:24
forget how far Bitcoin has gone throughout the 15 years of, of
30:28
its existence. And I've been saying this for a
30:31
long time on the show. And I know a lot of Bitcoiners
30:33
in the chat that hang out with us are always like, OK, we don't
30:36
need BlackRock, we don't need politicians.
30:38
But it's become very obvious that ever since the BlackRock
30:41
ETF came out, there is a sense of legitimacy coming out of the
30:45
Bitcoin industry. Now Bitcoin is a political
30:48
topic, You know, it's, it's been, or rather politics has
30:51
been thrusted on our doorstep. And so now Bitcoin can't just be
30:55
relegated to, you know, dark corners of the Internet.
30:57
It has to be in everyone's portfolio.
31:01
And it's becoming a legitimate conversation.
31:03
And I think what we're seeing right now with the price is that
31:07
once it really does do, it's it what we think it's his next leg
31:11
up. Everyone's going to start to
31:13
pile into Bitcoin. And now it's becoming, it's
31:15
going to become the de facto investment, the, the de facto
31:18
portion of people's port portfolios.
31:20
And I just saw a interesting metric.
31:22
And I know we're, you know, we're not the biggest fans of
31:24
Coinbase here, but in March of the last all time high, when,
31:29
when Bitcoin hit 72 K of what the last bull run one, I think
31:35
the Coinbase downloads on its app was at like 24 or something
31:40
as one of the top apps. And right now it's in like the
31:43
400. It's almost like the 500th, you
31:45
know, largest downloaded app right now.
31:47
And so that just goes to show you that Bitcoin is about to
31:50
break all time high. There's no retail FOMO coming in
31:53
yet. This is all coming from what we
31:55
would call, you know, the smart money, the institutional
31:57
managers are finally dig dipping their toes in Bitcoin.
32:01
So once you kind of Add all this stuff together, once the price
32:04
does start running, we do get, you know, price discovery mode.
32:08
We have the Microsoft's of the world dipping 1% into Bitcoin
32:13
and then we get retail FOMO. The Overton window is, is
32:17
crashing. It's exploding in real time on
32:20
us. And again, as I was saying
32:22
earlier and and shout out to Nolan, I was watching Nolan's
32:24
show. He finally came back this
32:25
morning and he's going to like rebrand his show because it's
32:28
like the breakup with Fiat is over.
32:31
You know, Bitcoin and I hate to do the Bitcoin is winning, but
32:34
it is winning so hard right now that mainstream is capitulating
32:38
on Bitcoin. And I think the net, like I
32:40
said, the next four years plus is just going to be incredible
32:43
in regards to the Bitcoin industry, where the industry is
32:46
going to go. You know what that means for
32:48
every one of you guys in the chat that has been holding
32:51
Bitcoin for this long like it, I think the the Overton window is
32:55
done and now Bitcoin is a legitimate thing in the world.
32:58
And like I've been saying, if you fight Bitcoin, you know
33:02
you're going to try to fight reality.
33:04
And we know that that never works.
33:05
And now we're entering into everyone accepting reality and
33:09
what it means. And it means you need to get on
33:11
the Bitcoin standard. Yeah, absolutely right, guys,
33:14
We're almost at 2000 live viewers.
33:16
If you guys are enjoying the show so far, smash that like
33:18
button, consider subscribing. You're listening to Simply
33:21
Bitcoin Live. We have Frank Holmes on the show
33:23
today. He's currently the executive
33:25
chair chairman of Hive Digital Technologies.
33:28
And of course, I'm here with my legendary Co host Optimus
33:31
Fields. Guys, stay tuned.
33:33
We still have the news segment. We're going to talk to Frank
33:37
about Microsoft potentially putting Bitcoin on their balance
33:40
sheet. And of course, all this crazy
33:43
mining news that has been happening that has been
33:45
happening throughout the year. Of course, the Kingdom of Bhutan
33:48
news, the news coming out of Paraguay, El Salvador mining
33:52
Bitcoin, Russia legalizing cryptocurrency mining as well.
33:57
So all this news want to get Frank's thoughts on all this.
34:00
So guys, stay tuned. We'll be right back.
34:02
We're going to hit the we'll be right back.
34:04
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Not your keys, not your cheese. Anyways, I want to get Frank's
36:04
thoughts on this. This was making quite a splash.
36:07
Sailor also was nudging the CEO of Microsoft and basically said
36:13
look to use sailors words not mine.
36:15
If you want to make the next trillion dollars for Microsoft
36:18
shareholders call me. And of course you know this
36:21
happened on the 25th 4 days later Bitcoins on the verge of
36:24
potentially making an all time high $72,816 currently at the
36:29
time of recording. Anyways, I do want to read this,
36:32
and I believe this came from the Microsoft press release.
36:36
Anyway, it says MicroStrategy, which like Microsoft is a
36:38
technology company, but unlike Microsoft holds Bitcoin on its
36:42
balance sheet, has had its stock outperform Microsoft this year
36:46
by 313%, despite doing only a fraction of the business that
36:50
Microsoft has. And they're not alone.
36:53
The institutional and corporate adoption of Bitcoin is becoming
36:56
more commonplace. Microsoft's second largest
36:59
shareholder, BlackRock, offers its clients a Bitcoin ETF.
37:04
So I mean, Frank, when I saw this, I said, you know, that
37:08
this might be the first domino to fall.
37:11
What are your thoughts on this? Is was this as consequential as
37:15
you know, as perhaps I'm perceiving it to be?
37:18
Do you think this was inevitable?
37:20
Is the opportunity? Is the door slowly closing?
37:22
Is the opportunity almost gone? What are your thoughts?
37:26
Well, I think it's a technical rule that you can't do in other
37:29
countries if you're as a stakeholder.
37:32
I have a small position in Microsoft, you can have that put
37:37
on the proxy. So management and the board are
37:41
I don't believe are sponsoring, you know, go, go buy Bitcoin.
37:46
They're voting against it. But you have this right to have
37:49
that put on the proxy, which that itself is a game changer
37:56
from a, from a regulatory. I wouldn't, I wouldn't be
37:59
surprised to see the regulators to come out and try to change
38:02
that. You can't do that.
38:04
So you can buy 100 shares of of many companies and call them up
38:09
that they have to put that on their proxy.
38:12
So it's a technical issue. And what what's your perspective
38:17
on Sailor attempting to nudge the Microsoft?
38:20
Season, he's brilliant, he's brilliant.
38:22
What he's doing to to wake up the these giants and having it
38:27
on the balance sheet, that's what he is and that's why Hive
38:30
holds as much of his Bitcoin as possible and we have 2700 on our
38:35
balance sheet. And could, could we talk a
38:37
little bit about that because that what you just said, some
38:41
other mining companies have not followed that the in terms of
38:44
the Bitcoin accumulation strategy, I'm not, I don't have,
38:49
I'm not the CEO of a public company, but I am the CEO of a
38:52
small Bitcoin media company. We have a very similar strategy,
38:55
maybe not to those volumes, but stack as much Bitcoin as you
38:59
can. It is literally a cheat code.
39:02
So could we talk a little bit about that?
39:03
Right. Let's talk about the hive
39:05
Bitcoin accumulation strategy, why it is a cheat code?
39:08
What are the benefits of it? And again, other mining
39:12
companies are not necessarily doing this.
39:14
They're selling the Bitcoin as soon as they mine it.
39:17
Yeah, I think Irene Energy is probably the biggest in selling
39:21
everything that they produce and I think is a Terra Wolf is the
39:26
other one is that have over a billion dollar market caps.
39:31
They sell all their coins, Cleanspark that used to sell all
39:34
their coins and now they're accumulating, which is sort of a
39:39
positive dimension. I think that it's just if you
39:43
believe, I know from the world of gold, the gold companies in
39:47
the 90s that hold as much gold as possible that they produced
39:53
traded at a higher valuation. They treated a higher value
39:56
sharing of book value. They had more price discovery
40:01
with retail investors. Institutions are only attracted
40:05
if you have a lot of minerals buying and trading your your
40:08
particular stock and and to particular Rob McEwen.
40:13
In the building of Gold Corp used to have brown paper bag
40:16
lunches in downtown Toronto for the shareholders and, and go
40:20
underground and sit at a open area and discuss the world of
40:24
gold. And this following was so great.
40:28
So I, I think from that end when we went public, we made a
40:31
decision that we were going to huddle at one time and we were
40:35
6% of the Ethereum network. We were holding a lot of
40:38
Ethereum. We sold it all as soon as they
40:41
went to proof of stake. We're out of there.
40:43
The only mechanism that I believe is proof of work and and
40:48
it's another reason why I'm such a big believer of Bitcoin and
40:51
and it's your uniqueness. 100% and and it's, I'm so glad that
40:57
you that you said that right, which you're a fan of proof of
40:59
work. And again, I think Bitcoin is
41:01
the only really the only serious proof of work, proof of work
41:06
digital asset standing. Now, this wasn't the case when
41:09
we got in 2017. I mean, we all lived through the
41:12
fork wars, right? You know, a lot of uncertainty
41:14
in that era, a lot of other, let's say, more popular proof of
41:18
war coins. Clearly, you know, seven years
41:21
later or so roughly, you know, clearly there's a winner in from
41:26
my perspective. And I think that that winner is
41:27
Bitcoin. That wasn't the case back in
41:29
2017. It was, let's just say it was a
41:32
lot more uncertain and you know, a lot of things have changed.
41:36
Frank, as a business person, when you're mining Ethereum, it
41:40
was always much more popular than Bitcoin mining.
41:42
Bitcoin mining will have these waves of big profit margin.
41:47
Everyone jumps into mining, your margins have taken away and
41:51
Ethereum was always at the last having.
41:55
We always made money and and we had that, that big huddle.
42:00
I always looked at Ethereum when it was used.
42:03
The mechanism proof of work was like silver is to gold.
42:07
Bitcoin goes up 10%, Ethereum's going up 15%, Bitcoin falls 10%,
42:12
Ethereum was going to fall 15%. Very similar psychology of
42:17
trading between the two of them. But since they've gone to proof
42:21
of stake, they've destroyed their ecosystem.
42:24
All the minerals are gone and and that different between
42:27
Bitcoin and Ethereum is huge. So I'm such a big believer in
42:34
the proof of work mechanism. Absolutely, Opti, I want to get
42:38
your take before we move on to the culture and focus on Hive
42:42
digital technology. Yeah.
42:43
Well, really, I kind of want to just tee up frankly with another
42:46
question and then kind of pick his brain with his expertise.
42:49
And it's more on the lines of how long do you think it's going
42:52
to take other big public companies to follow the
42:55
MicroStrategy strategy? I know these conversations are
42:57
happening. I, I, you know, you don't need
42:59
to expose too much information if there is any on the back end.
43:03
But what's your thoughts on the time frame of other people
43:06
adding Bitcoin to their balance sheet, Some of the biggest
43:08
companies in the world? Do you think it's going to
43:10
happen quicker than we think or they're going to, you know,
43:13
obviously go through the paces and then make sure that they're
43:15
fiduciary responsibility and shareholders are happy before
43:18
they do all of that? I think if you're a technology
43:21
company or you're a consumer products company where you're
43:24
taking just a direct use of for credit cards etcetera.
43:28
Like you see out of Europe, a lot of the high end luxury
43:32
brands are now accepting Bitcoin to sell you your LVMH purse.
43:38
And, and I think that they're the ones that should be holding
43:42
that Bitcoin rather than immediately converting to sell
43:45
it to get cash, get EUR or U.S. dollars.
43:49
I think that this particular technology companies, which are,
43:53
are in, in that ecosystem of, but it will take time because
44:00
the banking industry and the banking lobbyists, they're very
44:03
strong and they're anti the envy of Tether is huge.
44:08
It's going to think that Tether makes more money than the $10
44:12
trillion asset manager BlackRock.
44:16
That's that's mind boggling. They're doing over 50 million
44:20
revenue per employee. NVIDIA is 3.5 million.
44:25
Apple was around 2.2 million. I'm really proud to say, you
44:29
know, Hive is over 5 million. But when we look at gold royalty
44:35
companies and that was always the original strategy to make
44:38
Hive more like the gold royalty companies, the premier company
44:42
would be Franco Nevada. It's 30 million in revenue per
44:45
employee, but Tether is 50 million.
44:49
I mean, that's just mind boggling.
44:51
And and so coming back on the idea of holding Bitcoin that if
44:57
you're, if you're a corporation that taking in U.S. dollars for
45:00
selling a product, if, if you have free cash flow, I think
45:05
your free cash flow should be totally your Bitcoin.
45:07
If you don't have free cash flow, I understand you got to
45:09
pay salaries and electrical bills and everything else, But
45:13
as a smart business person, you want to be generating free cash
45:17
flow. And out of that free cash flow,
45:19
a portion should be dedicated to owning Bitcoin.
45:24
And if you're a gold miner, you should be owning some of that
45:27
product you have if you have that free cash flow. 100
45:31
percent, 100%. All right, ladies and gentlemen,
45:35
there's 2000 of you guys watching live.
45:37
If you guys are enjoying the show, smash the like button,
45:39
consider subscribing. You're listening to simply
45:41
Bitcoin. Of course, our special guest
45:42
today, Frank Holmes, Executive Chairman, Hive Digital
45:46
Technologies. We're going to talk about Hive
45:48
right now during the culture segment, so stay tuned.
45:50
We'll be right back. Before we jump into the
46:04
discussion, I do want to give a shout out to our sponsor.
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description. All right, everybody, let's talk
46:37
all things Hive, Opti, all yours.
46:40
Yeah, actually, actually, we're definitely going to get to Hive.
46:44
But Frank was saying something, teasing something for us in the
46:47
beginning. You did mention Bitcoin is going
46:50
to be likened to Andy Warhart paintings.
46:53
And before we set the stage for everything Hive, you did drop a
46:57
bomb on us earlier and why you think the journey to Bitcoin to
47:01
$1 million is an inevitable. And I, I think our audience
47:04
would love that. And then we'll cover everything
47:06
Hive. So Frank, why do you think
47:08
Bitcoin is going to $1 million? What is your thesis here?
47:13
I'm a quad analyst and when you look at mathematical rules and
47:16
laws, like everyone knows Moore's Law, there's also
47:20
Metcalf's Law and and Metcalf's law of adoption.
47:23
So when you create scarcity and you have people value and
47:28
believing in a piece of art or and I'll give you a classic
47:33
example. This happened in diamonds.
47:35
Then the prices grow exponentially it and So what new
47:40
technologies come along for the Bitcoin ecosystem has been
47:45
ordinals and and ordinals figured a way to basically put
47:50
on a Satoshi a piece of art and and what you found is that if
47:58
you own special numbers and one Bitcoin is worth 100 million
48:04
Satoshi's. So what is a Satoshi worth .0007
48:10
cents? What is a Bitcoin worth when
48:14
Satoshi's hit 1 penny just one penny there were bitcoins worth
48:19
$1,000,000. Well, that's so far away.
48:22
Well we have some of those special Satoshi's and we were
48:28
offered for a handful of a quarter, $1,000,000 because
48:33
those numbers were at an important halving event like the
48:38
last halving or they could be at any epic event like the day that
48:43
Bitcoin makes or the hour makes an all time high.
48:47
Those Bitcoins and those Satoshi's within there have a
48:52
special valuation that's put on people that want to send art.
48:58
So classic is I have a nine year old daughter and I would like to
49:03
have a painting of her when she turned 1 and then 2.
49:08
So I would want a satoshi on her birthday every year attached and
49:14
I'll pay $10.00 for that satoshi.
49:17
Not a penny $10.00 for someone to go get it.
49:20
Well, what does that mean? Has that ever happened before?
49:25
Absolutely. Look at Mao paintings by Warhol.
49:29
He came out every year for simplicity.
49:32
Say 1000 prints, $1000, purple, next year pink Mao, next year
49:38
green Mao. Those paintings went to $50,000.
49:42
The original piece went to a quarter million and now
49:47
everyone's anti China and all of a sudden the value of those have
49:51
gone down. But Elizabeth, Queen Elizabeth,
49:54
because she passed away, her paydays went to all time highs.
49:58
It's recognizing that and this happened in the world of
50:01
diamonds. When diamonds first came out,
50:04
only 3% of Americans believe in diamonds would be a tangible
50:08
gift for commitment intangible called love.
50:12
Those diamonds were worth $10 a carat.
50:15
They went to 10,000 a carat and now 80% of men and women are
50:20
especially women expect you 2 guys to give them a diamond
50:25
because you said you want to marry them.
50:28
If you don't give them a diamond, well you're they don't
50:31
believe you. The beers did it again in Japan
50:34
in the 60s and all of a sudden from 3% went up to 80% of
50:40
Japanese women. Expect a diamond for commitment
50:45
of something tangible and intangible.
50:48
Once you recognize that, then those special sat numbers have
50:54
this uniqueness of love. They are attached to love,
50:58
they're attached to a photograph and love is unlimited.
51:03
So I, I just think that people will come up to say they want
51:08
something green. I see, I see some of that going
51:10
back. She's always don't believe that.
51:12
But NVIDIA said that they want to deal with us because we are
51:18
green. When we launched the first, our
51:21
own ASIC chip with Intel, they approached us because we were
51:26
only green. So if you're talking about
51:29
adoption and more and more people buying in, well, what
51:33
happens when an organization like NVIDIA says they're going
51:36
to start owning Bitcoin, but they're only going to have green
51:40
Bitcoin because that's what they believe in.
51:42
And it's recognizing that Bitcoin capped at 21 million
51:47
coins, 94% have been mined, creates the perfect opportunity,
51:54
like a storm, for Bitcoin to trade much higher.
51:58
Interesting. The a couple thing I, I want to
52:01
double back to the Steve Jobs quote that you mentioned right
52:05
about connecting the dots. Very interesting story because
52:09
it, it allows you, it's like real world example.
52:12
And then you're seeing that same pattern play out in Bitcoin like
52:16
you did with gold. And you say, oh, I've seen this
52:17
before and then you're starting to see the same thing as it
52:20
relates to the art stuff. So interesting, and I do want to
52:25
give a shout out. We have over 2000 live viewers
52:27
right now and we're about to dive into everything Hive.
52:31
So I'm going to hand it off to Opti.
52:32
I'm going to share the screen. Yeah, Yeah.
52:34
OK. All right, Frank.
52:36
So let's talk everything hive here.
52:38
Of course we have some stats here for everyone and you, you
52:41
can jump off off after this first public miner, first public
52:45
miner with an AI strategy you're diversifying into high-powered
52:48
computing like you mentioned NVIDIA preferred partner.
52:52
So for those that don't know out there in our your audience, you
52:55
know, what is HIVE, what is your goals and, and maybe even tease
52:59
like where do you think Hive will be in the next couple of
53:02
years and, and what your road map is?
53:06
Our road map is in. After we expand on a year from
53:09
now, we'll be 2% of the global network in production and and we
53:15
think that other opportunities are coming to us that we could
53:17
be 3 or 4%. But right now what we control is
53:21
the journey to having 2% of the global network and continuing to
53:25
hold as much Bitcoin as possible on our HPC strategy.
53:30
We think that's a big in dollar business on its own.
53:33
If they give you a classic rate now you're making around $0.12
53:37
an hour on Bitcoin mining. That's all.
53:40
It's $0.12 an hour on each of these best performing chips.
53:44
On our NVIDIA chips and our AI business, we're making a dollar
53:49
an hour. Wow.
53:51
So we see that as a huge growth opportunity for our uniqueness
53:57
and because we were the the biggest public miner mining
54:00
Ethereum, we have GPU experience.
54:03
So when you when you drive a Porsche, that's like driving a
54:07
Jeep that's a GPU, different technical skills, etcetera.
54:12
ASIC chips are like Ford or Bronco trucks and and so it
54:17
requires more technical experience managing GPU chips
54:22
and we have that. So today we're throwing off
54:25
about $10 million of free cash flow from repurposing our
54:29
Ethereum, from reminding Ethereum as we repurpose going
54:33
into the AI business. And we think that in a year from
54:36
now, it'll be 50 million is where our plans are.
54:40
But what Bitcoin miners have to recognize is that it's much more
54:44
complex than some of these other companies that use it to to get
54:48
their stock. It's a stock promotion.
54:50
For me, it's very difficult because you're building a brain.
54:54
People will pay you more per hour if you have certain cables
54:59
because they know for coding the value of the cables between the
55:03
NVIDIA chips. So we get a super Micro server
55:07
which has some CPU chips on it. We load up our NVIDIA chips and
55:12
the cables that hook it all up are valuable that they're worth
55:16
$0.10 an hour more. So all this has been learning
55:19
experience for me in the past year.
55:22
But what we see is that when you want to get build a data Center
55:25
for Bitcoin mining, you have to think it's $1,000,000 a MW.
55:31
When you're going to go into HPC for AI, it's $10 million a MW
55:37
just to build the building. Now you got to buy the
55:41
equipment, but that revenue per hour is much greater.
55:46
So Hyde wants to participate in the Super tidal wave of the
55:50
adoption globally of digital money and digital wealth, such
55:55
as Bitcoin and also AI and using AI to help us be better miners
56:01
and how we use energy. Like right now we've been able
56:04
to go and mine some of these as people like to call them the
56:08
shit coins and we we were too big, but we can immediately
56:12
convert into Bitcoin that's more profitable.
56:16
So in any time we see where someone else has got a new coin
56:20
that's proof of work, we could come in to mine that because of
56:24
margins, the returns are higher. We use AI to help us to navigate
56:29
through all those coins, but in seconds they are convert to
56:33
Bitcoin because that's all we want to own on our balance.
56:38
Gotcha. Interesting.
56:39
So and I want to, I want to tell you, I want to ask you something
56:42
Frank. So the let's talk about the
56:46
relationship between AI and Bitcoin.
56:48
Bitcoin is like the one of the only Internet native currencies.
56:53
And if AI scales to a point where it's artificial
56:57
intelligence and it wants to use an Internet native currency,
57:00
obviously Bitcoin becomes one of the best choices for it.
57:07
Absolutely. It's just, it's part of that
57:10
Metcalf's law that adoption takes place.
57:12
So Microsoft starts to adopt then what we're seeing.
57:16
And remember, Eric Buchanus was speaking at the conference, Plan
57:20
B in Lugano, and you had a wonderful presentation of what
57:25
happens when Vanguard comes in. It's just a matter of time when
57:28
Vanguard all of a sudden comes in and they have 3% of their
57:33
fund flows are registered investment advisors.
57:36
Well, there's 45,000 registered investment advisors through
57:39
America, and they're very significant in the ETF
57:43
ecosystem. And they've been very
57:46
significant in buying these other Bitcoin ETFs.
57:49
When Vanguard turns on that juice, they're what's almost,
57:53
they're just under BlackRock in size.
57:56
So there'll be these tipping, these inflection points where
57:59
things go exponentially and then they'll go sideways and then
58:02
they'll go exponentially in that adoption process.
58:07
Gotcha, gotcha. Opti, we have some more
58:09
questions lined up, don't we? Yeah, I got some good stuff over
58:12
here. So I, I also, you know, we were
58:14
talking about your road map and I know this is maybe I, I'd hope
58:18
I'm not leaking anything here, but we have, you were telling us
58:21
about building 100 MW hydro facility in Paraguay and
58:24
targeting 12 EXA hashes in 2025. That's incredible.
58:28
So you want to talk about maybe your choice of why you went to
58:31
Paraguay and then explain a little bit of that, what
58:34
facility you're building out there?
58:36
Well, two things happen in the world, or maybe three things
58:38
about energy. One, Putin invades Ukraine
58:42
immediately. Energy prices around the world
58:44
go up 1 penny. There's no invasion here.
58:47
Just all of a sudden that fear and stress shows up.
58:50
Canada comes up with announcements that they have to
58:54
have a way to review all data centers.
58:56
It doesn't matter if it's HPC, Sweden puts up 100% tax on the
59:01
energy because they're all fearful of of what happened
59:05
there. So it's recognizing that these
59:08
events have this rippling effect around the world.
59:12
What's really positive this year is AWS buys uranium nuclear
59:19
energy. They spend 650 million for 950
59:24
megawatts. Well, that's a game changer.
59:26
All of a sudden it's renewable energy and all the all the anti
59:31
nuclear people are quiet because AWS is all of a sudden saying
59:36
we've done all the work on this and we're seeing new nuclear
59:41
rules coming out for these micro nuclear centers.
59:46
So I think that these events take place that create this sort
59:49
of quantum leap of adoption for energy and, and Paraguay comes
59:55
along and they have green energy.
59:59
And I think that was disappointing that they put a a
1:00:01
tax or tariff on on Bitcoin miners because of the negative
1:00:06
data from what you find out when you go there is that New York
1:00:09
banks tell the Paraguayan banks that if they have any Bitcoin
1:00:13
mining clients, they will shut them off of international
1:00:17
currency movement. That that's what you see is the
1:00:20
is the overreach of the banking lobbying group of doing
1:00:24
everything to try to stifle and hurt the industry.
1:00:28
But nevertheless, we said where can we get green energy
1:00:32
expansion of 100 megawatts in Sweden, not with, not with.
1:00:36
Their attitude towards just all data centers in Canada is the
1:00:39
same way. It's hard to get this stable
1:00:42
green energy. A wind and solar are not as
1:00:45
stable. You end up having to use natural
1:00:47
gas if there's no sunshine and there's no wind or massive
1:00:52
batteries. So they became the alternative.
1:00:55
What I found in my journey was they've been selling energy to
1:00:59
these other countries and there's no pay.
1:01:02
Argentina owed them for two years and out of they owe them
1:01:05
200 million, they just gave them 100 million.
1:01:08
Well, Bitcoin is a savior. Bitcoin gives them foreign
1:01:12
dollars every month. And what are we seeing?
1:01:16
What some of these rogue countries want to get in Bitcoin
1:01:18
money because they want U.S. dollars.
1:01:22
That's Venezuela. That is Russia doing anything to
1:01:26
get access to Bitcoin, to get access to U.S. dollars, that
1:01:31
mechanism. But what does it do for the
1:01:33
government of Paraguay? They don't have to sell their
1:01:36
energy for one penny and not get paid.
1:01:38
All of a sudden we become the ability to help the government
1:01:42
run their budgets, their energy company.
1:01:45
So I'm thrilled about being sort of that white knight within
1:01:48
these countries. I love that, I love it.
1:01:51
And again, I think it, it's Bitcoin that enables this,
1:01:54
right, Frank? Like it's your expertise.
1:01:57
You go in there, you use proof of work, you use Bitcoin, the
1:02:00
benefits of Bitcoin to come to these countries.
1:02:02
And, and honestly, like, if we're really like you're
1:02:06
essentially providing an alternative to an IMF loan.
1:02:09
I mean, like if, if, if like it is an alternative.
1:02:12
This is an alternative funding mechanism for a lot of these
1:02:15
countries, a lot of these governments, and that's
1:02:18
extremely exciting because it gives countries alternative
1:02:21
choices. And I think that's a good thing.
1:02:22
It's a good thing for the world. My humble opinion, I might be
1:02:25
wrong here, but that's my take. So do I agree?
1:02:29
Opti, any more questions? Yeah, well, I think we remiss if
1:02:34
we didn't talk about hives huddling strategy.
1:02:36
You guys are holding over 2600 Bitcoin and now we're entering
1:02:41
into what looks like the next leg up in the bull run.
1:02:44
So let's just drop some bullish takes.
1:02:46
Of course you guys are huddling your Bitcoin and you know where
1:02:49
where do you think we're going right now?
1:02:51
And, and what do you think is, you know from a mining
1:02:54
perspective what this bull runs gonna mean, you know, going from
1:02:58
the end of 2024 into 2025? I think we have to deal with
1:03:03
what happens if Trump doesn't win.
1:03:05
That reality will that you'll get a big correction.
1:03:08
What would happen if, if they make Ginsler, he's wants to be
1:03:15
the secretary treasurer, If he does that, what will that do to
1:03:20
the dollar? How will he weaponize the IRS?
1:03:24
All these things are are are questions that people ask
1:03:27
themselves that that would be the big correction that you
1:03:31
would take place. If Trump wins, I think it
1:03:35
quickly accelerates to $100,000 in, in the adoption and the
1:03:41
comfort that that this is a unique, it's such a unique asset
1:03:47
to protect the humanity. It's to protect freedom of
1:03:51
rights. It, it really is so significant
1:03:55
when you travel around the world and you start to realize how
1:03:59
hard it is to move money. What what the, you saw when we
1:04:03
were in Switzerland, what the bank wants to charge.
1:04:07
It's a minimum 5%, it's a 5% Commission.
1:04:10
You want a, a 500 Swiss franc. Swiss franc was a part of the
1:04:14
dollar before Covic and now it's bringing A120 premium.
1:04:18
And and if you and some of these ATMs that if you want to get a
1:04:22
cash out, they wanted a 13% Commission spread plus the 5%, I
1:04:29
mean, it's outrageous. So how do you move money between
1:04:33
countries that you are as a citizen have to leave or you
1:04:36
move to another place? I think that Bitcoin is that
1:04:39
solution and I think that's more inclusive and I think it's much
1:04:45
more protective of financial human rights.
1:04:47
A. 100% yeah. It empowers the individual the
1:04:51
likes of which has never been seen before in human history,
1:04:54
protects them from the devastating effects of inflation
1:04:56
100%. And you know, Dennis Porter gave
1:04:59
a great presentation at the conference that the Bill of
1:05:03
Rights and the Constitution of America is rules based.
1:05:07
And that's what makes it so powerful.
1:05:09
And if you think about the Swiss, the cantons have
1:05:12
tremendous power and they have a very strong, just like in
1:05:16
America, the the 50 states have tremendous powers.
1:05:20
And so he was going on with this rules based constitution and
1:05:24
Bitcoin is rules based and, and both are there to protect your
1:05:29
rights to life, liberty and the pursuit of happiness, how you
1:05:33
want to spend your money, where you want to spend your money.
1:05:36
And I thought it was a very profound presentation that
1:05:40
Dennis Porter and I don't know when they're going to allow
1:05:42
people to be able to watch the video presentations, but he was
1:05:46
and, and Eric Picanos did exceptionally informative and
1:05:51
timely presentations. Yeah, absolutely.
1:05:54
Dennis is a is a good friend and he's done incredible work
1:05:58
specifically on the state level, you know, going to individual
1:06:01
States and getting the right to mind and the right to self
1:06:04
custody in law, which depending it's Frank, you brought up a
1:06:08
really good point. Let's see how this election ends
1:06:10
up. Like we know how the Biden
1:06:12
administration and the Harris administration feel about the
1:06:15
industry. Look at the last 3 1/2 years.
1:06:17
And of course, we know what Trump promised the industry, of
1:06:22
course, at the Bitcoin conference and you know, all
1:06:24
the, all the dinners and, and fundraising events that he's had
1:06:26
as well. So I think it is going to be
1:06:28
very, very impactful the the results of this upcoming
1:06:32
election. And I think it's, it's, it's,
1:06:35
there's ramifications for it. And I think that if it goes the
1:06:38
Kamala route, this is where the state level regulation comes
1:06:42
into play. And this is where Dennis's work
1:06:45
goes a really, really long way. And he's put in a tremendous
1:06:48
amount of effort and energy into it.
1:06:50
So definitely shout out to Dennis.
1:06:51
But I do want to give a shout out to our guest, of course, the
1:06:55
chairman of of of HIVE. And Co founder.
1:07:01
Digital Hive. Digital Technologies.
1:07:03
Hive Digital Technologies executive chairman and Co
1:07:06
founder Frank Holmes. Frank Holmes, thank you so much
1:07:08
for joining us. Wait, wait, wait.
1:07:09
Nico, let's, let's, let's let. Yeah, we'll forgive them.
1:07:12
We'll give them the final. We'll give them the final one.
1:07:14
I was going to say, come on. Frank, do you have he wants to
1:07:18
show the T Rex. There we go.
1:07:22
Frank, do you have any final thoughts for the audience today?
1:07:26
Yeah, the most important thing is really to have a positive
1:07:30
mindset is for a growth mindset. There's lots of great research
1:07:35
that came from a leading Stanford professor and MIT came
1:07:38
up with this research that you see opportunities better you you
1:07:42
can connect the dots better. As Steve Jobs said, if you have
1:07:46
a really negative, you'll miss opportunities and and it's not
1:07:51
good for your health, it's not good for your energy.
1:07:54
You 2 guys have phenomenal positive energy.
1:07:57
I. Appreciate it.
1:07:59
Well, Frank, thank you so much for joining us today.
1:08:01
Guys. Go check out HIVE.
1:08:02
The ticker is HIVE. It's publicly traded on the
1:08:06
NASDAQ. That's what we have, a gold
1:08:08
buzz. It's a gold B.
1:08:10
You can't miss it B. You guys have some of the best
1:08:13
merch in the game. I definitely have a couple hive
1:08:15
hats at home for. Sure.
1:08:16
And and Nico and Nico and Nico, we're inching as we speak closer
1:08:21
to 73 K So we didn't break all time high on the show, but it
1:08:25
looks like we're inching closer to 73 K Love to see it.
1:08:29
Awesome, So the So the Satoshi's for this show by the end of 3
1:08:33
o'clock today. Texas time 4:00 New York makes a
1:08:36
new hive. These will be more valuable.
1:08:38
There you go all right guys, if you guys enjoyed the show, you
1:08:42
know to do smash the like button consider subscribing if you feel
1:08:45
like we provided you valuable. We'll be back tomorrow for a
1:08:47
brand new episode of simply Bitcoin live.
1:08:48
Until then, I'm your host Nico, our guest for today, Frank
1:08:51
Holmes and of course, my legendary Co host Optimus
1:08:53
Fields. Love you all.
1:08:54
We'll see you guys tomorrow. Peace out.
1:08:57
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