Latest / Simply Bitcoin / BREAKING: Record Bitcoin ETF Inflows $133 million | EP 991

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BREAKING: Record Bitcoin ETF Inflows $133 million | EP 991 · Simply Bitcoin

0:03
It's all going to zero against Bitcoin.
0:06
It's going up forever. You're against Bitcoin.
0:16
You're against freedom, yo. Welcome to another episode of
0:24
Simply Bitcoin Live and I'm source for the peaceful Bitcoin
0:27
revolution cover. Can use Culture.
0:28
Romantic Warfare will be your guide through the separation of
0:31
money and state. Ladies and gentlemen, I'm
0:32
streaming live from Montreal, Canada.
0:35
We're a couple days out from the Canadian Bitcoin Conference,
0:38
which are going to be live streaming from you for you guys.
0:41
So many incredible bitcoiners going to be giving panels,
0:43
giving speeches. We're going to have the news
0:45
desk as well. So you guys know the deal when
0:48
we're on the go. We still like to keep the show
0:50
live for you guys, keep you guys entertained filling in for Opti
0:54
today while he's travelling with this Alamo in the house.
0:56
How you doing, Chris? I think this is the first show
0:59
that we've done, me and you together.
1:01
So man, thanks for joining us. Yeah, no problem, man.
1:04
Happy to be here. Yeah, and I think this is the
1:06
first one with you, me and without Opti.
1:08
So you know all Hell's gonna break loose.
1:11
For sure, For sure, guys, we have a lot to talk about today,
1:15
it seems like. It seems like and it's crazy
1:18
'cause when I was making the title for this episode, the
1:22
price still didn't pump yet. But there was news coming out
1:27
that essentially we're seeing a record $133 million worth of
1:33
inflows into arcs Bitcoin ETF. This is the highest ever since
1:39
March, so it seems like things are starting to pick up again.
1:42
And I remember when I was crafting this tweet, it was, I
1:45
mean crafting this, this title, it was like 9:00 AM, like very,
1:48
very early morning. And you know, Fast forward a
1:51
couple, a couple hours later, we pumped all the way to $65,000.
1:57
So could we be back? Did we have a little blip and
2:01
things are just going to start heating up again?
2:03
Well, maybe, maybe, perhaps. So it seems like the ETF flows
2:07
again have turned green, which I think is obviously a good thing.
2:12
This includes the Arkan vest. This includes the Black Rock ETF
2:16
as well. However, what I will say is that
2:19
they are not nearly as high as were they were in the beginning
2:23
of the year when they initially launched.
2:25
So I still think we have so much, you know, bullish news, so
2:29
much, so much upside left. And that's just because of what
2:34
has happened really in the last month or two.
2:38
We found out, like I was saying on yesterday's episode, that the
2:41
state of Wisconsin bought $100 million worth of the BlackRock
2:47
Spot Bitcoin ETF. And then we also found out that
2:50
Wells Fargo, the second largest, sorry, Wells Fargo, the third
2:54
largest bank in the United States, this French bank called
2:57
Paribas, the second largest bank in Europe, all bought exposure
3:03
to the BlackRock Spot Bitcoin ETF.
3:05
So they're buying indirect exposure to Bitcoin and I think
3:10
the the floodgates are going to completely open as more and more
3:14
people realize that the Bitcoin strategy is a superior strategy
3:18
and that they're at a competitive disadvantage to
3:21
anyone else that has adopted some type of Bitcoin strategy,
3:27
some type of Bitcoin exposure. Anyone who doesn't do that is
3:32
going to be at a competitive disadvantage.
3:34
So we're going to cover all of that today and then also
3:36
breaking news as well on the nation state level.
3:40
This is insane. By the way back in, you know
3:43
2021 when we we hit that peak of what it what was it like 69 K or
3:49
something or 68 K none of these things were true.
3:52
So the Wells Fargo thing wasn't true.
3:54
The the Wisconsin State Investment fund, what that
4:00
investment was not that didn't happen yet but also in the
4:03
nation state level, you have multiple countries including
4:07
Argentina, the Kingdom of Bhutan and the recently announced how
4:12
much, how much El Salvador has been mining over the last couple
4:15
years that was announced I think it was yesterday.
4:17
We're going to talk about that today.
4:19
So you're seeing nation state, not only nation state Bitcoin
4:24
adoption making El Salvador making Bitcoin legal tender, but
4:27
you have multiple nation states around the world mining Bitcoin
4:32
directly, right? Are using companies to mine
4:34
Bitcoin for them, which I find absolutely fascinating, but at
4:38
the same time not surprising because if you understand
4:42
bitcoins, incentives, none of this should come as a surprise
4:45
to you, All right? Also no more delay.
4:47
We have a very special guest which I saw in at in Texas at
4:51
bit block boom, we have bit Betro in the house bro.
4:54
How you doing dude? I'm excited to talk to you about
4:57
all these all these countries you know trying to mine Bitcoin,
5:01
some are using you know X, some are using natural gas, some are
5:04
using hydro. In the case of El Salvador, I
5:08
know they're trying to use the geothermal energy energy from
5:11
volcanoes. So I'm excited to talk to you
5:13
about that as well. And then also I wanted, I'm
5:17
excited to talk about all the projects that you're working on
5:19
right. So for anyone who doesn't know,
5:21
bit betro like he, he turns gas into Bitcoin.
5:26
He helps companies do that. You know, he's your man on the
5:29
ground with all that expertise in the oil and gas industry.
5:33
And he can help you if you want to get in Bitcoin.
5:36
So bit, bit, Petro, Thank you for joining us on the show
5:38
today, man. How you doing?
5:40
Doing good man. Appreciate you for having me and
5:43
giving me the space to talk about my work on both the oil
5:47
and gas front and the Bitcoin front.
5:49
So quick question before we jump into the show.
5:53
Do do you see more interest? So you know we're we're we
5:56
obviously we have to see what the headlines are saying and
5:59
then that's where we get our information from.
6:01
But could you give us a little bit of like, you know, some
6:04
inside baseball, so to speak, without naming any names?
6:07
Do you see more interest from the oil and gas industry, it's
6:11
specifically as it relates to Bitcoin.
6:15
Post ETF? Absolutely.
6:16
I mean it's a different world is it is it Larry Fink saying
6:23
something and then you know that is interpreted as legacy signal.
6:28
So it it's if it's good for Larry, it's good for us Maybe it
6:34
it's probably more likely that that you know it's
6:37
financializing and and they are, they're taking that on as a
6:42
signal of something that is, is a real reason to be interested.
6:49
Now an oil and gas company in reality is going to listen to
6:52
this because we're talking about a producer, right.
6:58
The guy that's making the oil and the gas, the guy that owns
7:00
the well, he's not getting paid what the market rate that you
7:04
see. So if today the market is you
7:06
know $2.30 or whatever, then then yeah, he's not going to get
7:11
that. He's going to get some deduction
7:13
off of that. Bitcoin mining allows him to
7:16
realize 100% of that in the state of Texas.
7:20
There's a tax severance benefit to this and the the price is
7:26
somewhere between let's say 5 all the way up to as much as $15
7:31
in MCF versus a a a top end of $2.30 minus deductions.
7:40
Yeah, yeah man. Well dude, I'm, I'm excited to
7:44
dive more into that, get into the details of that and you can
7:47
explain it to everybody. But look, from just a common
7:52
sense perspective from my, you know, 'cause I don't have that
7:55
experience that you do bit Bethroat what what I will say is
7:58
that I think energy and Bitcoin are a match made in heaven.
8:01
I think, you know, one goes with the other, right?
8:05
So I think it's inevitable that you're going to see oil and gas
8:09
companies and countries initially go down this rabbit
8:13
hole of, you know, finding out how to use Bitcoin to benefit
8:18
themselves and in the process securing the network, right.
8:21
And that's the beauty of an aligned incentive structure like
8:24
Bitcoin, aligned incentive structure system like Bitcoin.
8:27
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just getting started. All right everybody, I do want
11:56
to cover like this this trend that is happening worldwide.
12:00
It's incredibly, absolutely bullish.
12:03
Also shout out to fellow bitcoiner Javier Bastardo.
12:07
Anyways, the headline articles comes from Forbes.
12:09
It says Argentina will mine Bitcoin with stranded gas thanks
12:13
to GDAA little bit of context before I move on, Bitcoin mining
12:17
operations are expanding around the world.
12:18
Despite being one of the most competitive industries, hash
12:21
rate keeps growing and so do the global operations to execute
12:25
this important activity for the Bitcoin network.
12:28
Genesis Digital Assets Limited, one of the largest Bitcoin
12:31
mining companies in the world, is part of this announcement.
12:34
GDA announced an important agreement with the YPF Loose, a
12:39
subsidiary of the largest electricity company from
12:41
Argentina, YPF, to open a new Bitcoin mining facility that
12:45
will operate using stranded gas. Anyways, moving on to the other
12:49
thing I noticed here we have the Kingdom of Bhutan.
12:52
Now it what's really interesting about this news we've read it
12:56
for we we've covered this headline many times on the on
12:59
this show throughout the years, but essentially yours throughout
13:03
last year. Better said the Kingdom of
13:06
Bhutan has been quietly mining Bitcoin for years Now here's the
13:09
thing, we wouldn't we wouldn't have found out about this
13:13
because they didn't make this public.
13:15
It was only via the Celsius bankruptcy that kind of exposed
13:22
exposed that Bhutan had some, you know, had some type of
13:26
association with Bitcoin mining. But they weren't really vocal
13:30
about this, which is interesting because that makes me question
13:34
that makes me like ask the question like what other
13:36
countries are mining Bitcoin. They're just not telling anyone
13:39
about it, right. They just don't want the
13:40
negative oppressed. They don't, they don't want the
13:42
attention. So we have Argentina, we have,
13:46
we have the Kingdom of Bhutan. Even though the Kingdom of
13:49
Bhutan, I believe their government is a lot more
13:51
involved. They partnered up with Bit Deer
13:54
and now you have El Salvador announcing how much Bitcoin they
13:57
that they've been able to mine the last three years.
14:00
This is a Reuters article. It goes on to say El Salvador
14:02
has mined nearly 474 bitcoins since 2000 since 20/21 thanks to
14:09
a volcano fueled geothermal power plant.
14:12
Official data showed on Tuesday bringing the government's total
14:15
Bitcoin portfolio to nearly $354 million at current prices.
14:21
The country's Bitcoin office and official government entity
14:24
entity reports that the government coffers now hold 5750
14:30
Bitcoin. Also, if you take a look at the
14:32
hash rate, it continues to make all time highs even after having
14:36
it seems like it seems like there's been a bit of a
14:38
slowdown. Maybe you can make that
14:40
argument. Yeah, seems like it.
14:43
But I mean I guess you could say that would be normal because the
14:45
having just happened. But but yeah I mean like the
14:49
halving is I mean the the hash rate is you know it's undeniable
14:53
like even after the infamous China ban hash rate dropped like
14:57
50%, I think it took down the price with it.
14:59
I believe that's one of the reasons we didn't hit 100K last
15:02
cycle, but it recovered in record not record time
15:05
decentralizing in the process. Within nine months the hash rate
15:08
recovered and now it's just gone absolutely parabolic with I
15:12
think it's which I think is a testament of the amount of smart
15:16
money, institutional money like look it requires a lot of money
15:20
to mine Bitcoin these days right.
15:22
You have to invest in the infrastructure.
15:24
It's kind of I wouldn't say it's like a super long term
15:26
investment but it is somewhat of a long term investment that I
15:29
don't think you would make unless you felt very optimistic
15:33
about bitcoins future, right. So anyways, I'm going to start
15:36
it off with Bit Bet since you're you're from this industry, I'm
15:39
sure you know a lot more than we do in regards to this certain
15:43
topic. So what's your take on all this?
15:45
You you see these very different countries very far apart and
15:51
they're they all have one thing in common which is that they
15:53
want to mine Bitcoin. So is this a trend that we're
15:56
going to continue to see? What's your take on this?
16:00
Yeah, cheap electricity is going to give you mid quid miners
16:04
because that's what they're drawn to, right.
16:06
So if there is any access anywhere, particularly in and in
16:11
Argentina, you're going to see the Vaca Muerta because it's a
16:14
very gassy field. Gas is hard to get.
16:16
The market takes a lot of money to build a pipeline to get that
16:20
natural gas to the market. Bitcoin allows for that gas to
16:25
basically have optionality where the turbine or the internal
16:30
combustion engine can be dropped on site.
16:32
You can generate power there and that power can either power
16:36
local infrastructure that that you need to further expand
16:40
operations or Bitcoin mining and subsidized those operations.
16:44
So on one end of the spectrum, right?
16:48
On another end of the spectrum, you're going to have hydro,
16:53
right, like excess hydro. So I think egress who just sold
16:57
an additional 1 or 200 megawatts out for mining.
17:03
So this is just going to be anywhere we have excess.
17:07
So naturally a a lot of the early stuff was the geothermal
17:11
stuff in in the Nordic countries.
17:13
We saw a lot of that early on. Those are very geographically,
17:19
you know, isolated, although we're seeing you know, countries
17:22
like El Salvador attempt to to access those resources.
17:27
Yeah, absolutely 100%. Before we continue, I do want to
17:30
give a shout out to Marin. Marin, thank you for the €60,
17:35
appreciate it. I guess we were back.
17:37
I mean, bro, we never left, but I appreciate the support of the
17:40
channel. If you're referring to Opti,
17:42
Opti is currently in the air right now at 35,000 feet on the
17:46
way to Montreal for the Canadian Bitcoin Conference.
17:50
I got in I got in here late last night so that we can not skip a
17:54
beat and do the show for you guys.
17:56
Chris, what's your take on all this bro, this is incredibly
17:59
bullish stuff and again it it's not surprising.
18:03
I can't emphasize that enough. It this is not surprising if you
18:06
understand Bitcoin's incentives. It it's just it it I'll say this
18:12
it's not surprising but it's still surprising to see it for
18:15
the first time right. Like you knew this was going to
18:18
happen you knew that countries are going to be interested in
18:20
mining Bitcoin. But it's still it's kind of like
18:24
when we all we all like made a we we all knew that a country
18:28
was going to make Bitcoin legal tender but it still surprised us
18:31
nonetheless when it happened the way that it happened right.
18:34
And another thing also another observation that I that I that
18:36
I'll make is that this is all happening a lot quicker than we
18:40
all anticipated, right. So which which I think is pretty
18:43
crazy. Anyways, before I pass it on to
18:44
you I wanna tell everybody in the audience guys, smash the
18:48
like button, Help us break 100 likes within the first hour.
18:51
Currently at 93 likes on YouTube.
18:54
Smash the like button if you're watching this on rumble and on X
18:57
as well, right? Spread that orange signal
19:00
forward. Anyways, Chris, what's your take
19:01
on this brother? I was just gonna say optis,
19:04
Optis being held up by custom agents at the Canadian border
19:08
right now probably he's too based.
19:12
No, I I think the best way to think about this is to zoom out.
19:15
So what I mean by that is obviously we saw after the 2008
19:19
financial crisis basically the the US federal government or the
19:24
US Fed Federal Reserve said that they are basically devalue
19:27
bondholders who are the largest bondholders.
19:29
In 2008, the Chinese basically after the tailwind of that in
19:34
2011, 2012, the Chinese were not happy that basically the US
19:38
printed a lot of money. They bailed out banks and they
19:40
bailed out their banker friends. And by doing so, they devalued
19:44
the Chinese bonds. And the Chinese were, you know,
19:46
had like I quite literally think trillions of dollars of US
19:49
bonds. And you know, basically the US
19:51
government and the US Federal Reserve flipped off their
19:54
fingers to China. And China was like, well, we're
19:56
no longer going to buy treasuries.
19:57
So, you know, they kind of need to see demand for U.S.
20:00
Treasuries elsewhere because we're the global reserve
20:02
currency and the the treasuries are the global reserve asset.
20:06
So when you lose the demand in treasuries, you know, you kind
20:08
of lose a peg or a a peg of the stool for keeping up this Fiat
20:12
Ponzi. You know, Fast forward a little
20:14
bit further to 2022 and we see that the US government seized.
20:20
Russian oligarchs and Putin's assets to to the tune of
20:23
hundreds of billions if not trillions of dollars in
20:25
treasuries. So one you're losing people that
20:28
are buying your treasuries like the Chinese because you fucked
20:30
them over by printing money. And then you're telling the
20:32
world that hey, if you buy these treasuries from us like Russia
20:35
was doing or had, we can seize them from you.
20:38
So why would you want to have a money or and or an asset
20:41
associated with that with treasuries and U.S. dollars that
20:44
the US government can seize? They can cut you off from the
20:46
Swiss system. They can take over your assets.
20:48
So like Bitcoin is this neutral money that the world can settle
20:51
in and it's a better money. Not only is it unconfiscatable,
20:54
obviously the properties that we know, like, you know, having
20:56
your own wealth in your own head with, you know, 12 or 24 words,
21:00
but in the way that you can transact without having people
21:02
steal your wealth, either through printing of money or
21:06
literally confiscation of assets through the banking system.
21:08
So it was only a matter of time before we saw El Salvador you
21:12
know adopt Bitcoin as a country. We saw micro strategy adopted as
21:15
a treasury reserve asset for the for their corporation and then
21:18
kind of leading into the next story, not bearing the lead but
21:21
kind of bringing up like now pensions are getting into it
21:23
like everyone's trying to escape the debasement and the theft of
21:27
quite literally either physical theft through taking your assets
21:29
of of the treasuries or theft of printing of money.
21:33
So it's just a better like it makes a better world.
21:35
It aligns incentives, you know, if Bitcoin is for adversaries,
21:38
so even if you're Russia and the US and China and you all and
21:41
don't really like each other, you can use this as a settlement
21:44
of money where everyone is trying to like everyone was
21:47
trying to game the system and it's a fair and equal level
21:49
playing field. So I think, you know, the kind
21:51
of the losers of the world are the net consumers of the world.
21:54
I hate to say that, you know, Nico, you and I and BIA Petra,
21:58
we're Americans or based in the US I'm assuming that basically
22:02
we are net consumers relative to the world.
22:04
So the US and Europe are kind of net consumers where China,
22:08
Russia and a lot of other countries in South America are
22:10
net producers. So this is kind of only a good
22:12
thing that, you know, Bitcoin layer levels the playing field
22:15
and it's going to be, I hate to say this, but it's going to be
22:17
painful for many Americans that aren't on a Bitcoin standard
22:20
like what it means with not only their currency being debased,
22:23
but in terms of being net consumers and not net producers
22:26
to the world A. 100% and and they're they're the country that
22:29
has most benefited from that monopoly, right.
22:32
So yeah, I think that if you don't transition to a Bitcoin
22:36
standard and if you live in the United States, you know, you
22:40
could potentially find yourself not in a good place.
22:43
Because look, the the moment that the US loses its global
22:47
reserve currency status and a lot of countries like what Chris
22:50
was alluding to or referencing to, you know, a lot of countries
22:56
are seeking an alternative like the treasuries or the treasuries
22:58
aren't doing so hot right now. Like, people don't have faith.
23:02
Countries don't have faith. Institutional investors don't
23:05
have faith in the US government the the way that they used to
23:09
have. And with the current fiscal
23:11
spending, the the the way that the US government is spending
23:15
like there's no tomorrow, it really doesn't.
23:19
People don't have the confidence in the dollar that they used to
23:22
have. Now that's not to say that this
23:25
is going to happen tomorrow, but I would, you know, like the next
23:29
10 years, like if you don't have any type of exposure to Bitcoin,
23:33
you could potentially find yourself in, you know, in a in a
23:37
precarious situation to say the least.
23:39
And yeah, I think everyone's just trying to, you know, I I
23:43
think people are realizing that that they're sitting on melting
23:47
ice cubes. I, I, I, I, I, I really do
23:49
believe that. And I, I do believe that the
23:51
world is going through a slow awakening process.
23:54
And shout out to Michael Saylor for really being the vanguard of
23:58
that and I'm sure other public companies will follow.
24:02
And also shout out to Naeem Bukele as well for being you
24:05
know the vanguard in the vanguard in the on the nation
24:08
state level. So credibly bullish news after
24:11
all, but good news if you're a bitcoiner, especially if you
24:13
have it in self custody. Anyways, before we move on to
24:17
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All right, everybody, let's move on to the news.
25:46
Lots to talk about. The Daily News.
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All right everybody. So the big news for today, the
27:59
big kahuna. And then shout this This news
28:02
dropped at 6:34. So shout out to Nick Hoffman
28:05
cause damn boy 6:30 in the morning you're up dropping hot
28:09
fire. But yeah it's just interesting
28:12
because this news dropped and then guess what happened a
28:15
couple hours later the Bitcoin price went bananas and we pumped
28:20
all the way to 65 K Also in other news as well.
28:23
Seems like the inflation numbers came back a little bit lower
28:27
than everyone was anticipating, which gets everyone's hopes up
28:30
for the Fed to finally lower rates.
28:33
And then you know the money printer go Burr again.
28:36
And you know that tends to make the prices of assets go through
28:40
the effing roof. So let's check out this tweet by
28:44
Bitcoin Magazine. Arcs Bitcoin ETF recorded $133
28:49
million in inflows, the highest ever since March.
28:54
We are back. Keep in mind again this dropped
28:57
at 6:30 and the price, I think it started pumping at 11.
29:01
So, Nick, do you know something we don't?
29:03
But that's a very interesting observation.
29:06
Here is this great graphic, that kind of it.
29:09
It represents, it shows how much Bitcoin these ETFs, these asset
29:14
managers are buying and it's a ridiculous amount.
29:17
You know, currently I think the last number I saw was BlackRock
29:21
holds 274,000. That's more than Michael
29:25
Sailor's MicroStrategy. They've been doing this for
29:28
years now. And of course we have Kathy
29:31
Woods, Ark Invest with 153,000, those seem to that.
29:35
Was that was fidelities? That was fidelity as.
29:38
They're at like 40K. Kathy Wood is at 40.
29:41
You're right, you're right. Apologize.
29:43
Sorry about that guys. And then the bitwise we're at
29:45
3434 thousand 111 anyways, but it seems like there's clear
29:49
leaders which is the BlackRock, Fidelity and the Ark Invest.
29:53
But still dude, the 43,000 Bitcoin is no small feat.
29:57
Here is more data shout out to Bitcoin Treasuries that has been
30:02
accumulating this and it shows you what the ETF flows have
30:07
been. As you can see in the very, very
30:10
early days, they've been absolutely crazy.
30:12
They've gone absolutely bananas, right?
30:14
You know, sometimes stacking 2000 Bitcoin in one day.
30:18
But you know, things started to slow down specifically in April,
30:22
right? We had 1300 bitcoins and
30:26
outflows. In the very beginning of May, we
30:28
had 1694, but so far May has picked up.
30:34
You know, it's just been green so far.
30:35
So I mean things seem to be heading in the right direction.
30:38
I think the price reflects that. I think people are feeling a
30:41
little bit optimistic in terms of the recent inflation data
30:46
that came in. But the thing that I'm really
30:48
paying attention to, and I can't emphasize this enough, is this.
30:53
And we covered this yesterday. I'll get to why this is so
30:56
bullish. But the state of Wisconsin, $100
31:00
million worth of Black Rock Spot Bitcoin ETF.
31:05
And then the dominoes will start to fall as they realize that
31:09
adding Bitcoin to their portfolio, adding exposure to
31:12
Bitcoin to the portfolio is not a choice.
31:15
It's a necessity. And anyone who doesn't follow in
31:18
their footsteps, it is at a competitive disadvantage.
31:21
Here's James Lavish and he says it starts with a leg in trade of
31:25
.1 to .5% as they do their research.
31:29
Then it becomes a small position of 2 to 5% as they be as they
31:34
begin to understand it. Then Wolf would then with full
31:38
understanding and realization of perpetual negative real intra it
31:42
real rates of on treasuries, it becomes a full allocation of 10%
31:48
plus. And here's Michael Saylor.
31:51
I'm assuming he's reacting to the Wisconsin news and he says
31:54
there are thousands of pension funds in the United States
31:57
managing 27 trillion in assets. They're all going to need some
32:02
Bitcoin. This has already happened right
32:05
before we were speculating that this is going to happen.
32:08
We're looking at Bitcoin's game theory, but nothing of this
32:11
size. Right now you have America's
32:14
third largest bank. Now you have Europe's second
32:16
largest bank. I believe also UBS, the
32:20
Switzerland's second largest bank, or First.
32:23
I I I don't know which one it is.
32:25
They also announced that they have exposure to the Black Rock
32:28
Bitcoin ETF. And then to kind of put the
32:32
cherry on top, we are on track to hit Kathy Woods prediction of
32:39
$1.5 million Bitcoin by 20-30. The base case is 682,000.
32:46
I don't, I think we're going to blow past the bear case.
32:48
I think the bear case is just that it's the bear case which is
32:51
$258,000 per Bitcoin. But part of this case like she
32:55
didn't just pull these numbers out randomly, she was making a
32:59
case as to what needs to happen in order for the those numbers
33:02
to be hit, right. And there's a, there's
33:05
percentage, there's there's percentages, right.
33:09
So for institutional investment, for Bitcoin to hit that level,
33:12
that price target there needs to be roughly A2, 2.5% penetration
33:17
rate. And I think we're more than on
33:21
track to to hit those levels. I think we're going to blow past
33:26
them corporate treasury, I also believe like we're more than on
33:30
track to hit that 2.5% base, right.
33:33
So I think we're we're definitely on track man to to
33:36
hit these crazy crazy numbers that Kathy Wood witches Arkan
33:40
Vest I might add to you know potentially hit these price
33:44
targets by 20-30 just due to the institutional interest.
33:48
Now like where is this thing going to be you know 2-3 years
33:52
from now what companies what's the next Fortune 500 company
33:56
that's going to follow in the footsteps of Michael Saylor
33:58
because they're realizing holy cow you know Michael Saylor is
34:03
kicking everyone's ass and all he's done is adopt A Bitcoin
34:07
strategy. Like I think it's not a question
34:09
of of will they adopt A Bitcoin strategy.
34:13
It's a question of if. I mean when they will adopt A
34:17
Bitcoin strategy, because if not, dude, they're at a severe
34:20
disadvantage to anyone who does. So I'm going to start it off
34:24
with Chris 1st and then we'll move it on to Bit Petro.
34:28
Yeah, no, I mean, this is huge news.
34:29
Just huge. Shout out to Dombe Hafeziguri,
34:32
Joe Carlissari and Greg Foss. So they've been doing the
34:36
Nakamoto portfolio gauntlet. They've done 3 episodes.
34:38
I produced that episode where they were dropping that.
34:42
So shout out to Nico, yeah? I was in the background when
34:45
they were doing that episode and like guys, I do a lot of
34:48
content. So no, no.
34:49
Most of the time I I I tune out. But I would this entire episode
34:53
I was producing in the background.
34:55
I was like, holy cow, this is absolute signal and I don't.
34:59
Is it a coincidence that Alpha, Zeta, Hoffa and Dom Bay were
35:04
were talking to them and then all of a sudden you know, they
35:07
just did this 180? I don't think that's a
35:10
coincidence at all man. So anyways.
35:14
No, So shouts out to them. So they did an episode called
35:16
the Nakamoto Portfolio Gauntlet. It's up on Swan's YouTube
35:19
channel. Basically they've done 3
35:21
episodes talking to various pension managers or fund
35:23
managers about put it incorporating Bitcoin onto their
35:26
balance sheet. Many times these fund managers
35:28
agree to come on the show because they know Bitcoin or
35:30
they like Bitcoin, but it's kind of very different being
35:33
personally for Bitcoin and then being for it with a fund,
35:36
whether it's a hedge fund or whatever.
35:38
Obviously we're turning, as Nico always says, we're winning over
35:42
hearts and minds. So I think that a lot of people
35:44
are taking up to the idea of having Bitcoin as an asset or as
35:47
a bucket of assets. You know, you don't have to be
35:49
as cypherpunk and crazy as Nico be Petro and I like all into
35:53
Bitcoin all in cold storage. You know, you don't need
35:55
anything else. But basically they talked to him
35:59
like eight or nine months ago and basically we saw that
36:02
Wisconsin obviously put this asset allocation of Bitcoin on
36:05
their balance sheet. They made the investment I think
36:07
in January or February. So they don't have to report
36:10
until the quarter ends. So we're only finding out about
36:13
this news now because of quarterly reporting
36:15
requirements. But basically they they made
36:17
this investment and we're now just seeing it months later
36:20
because of like the rolling of the announcement requirements.
36:23
And one thing that I want to say is not bearing the lead, but so
36:26
hot. So they have the guests on.
36:27
They normally talk to them for half an hour, 45 minutes to an
36:29
hour and then the last 15 minutes or so they have the
36:32
guests leave and then basically they can talk among Dom, Hoffa,
36:36
Joe and Greg about like what they would recommend.
36:38
So they don't put them in pressure to be like, hey, this
36:41
is what we you should do or what you have to do.
36:43
But basically they gave three cases.
36:44
They gave a 1% allocation, a 2% and a 5% allocation.
36:49
They recommended the 2%. It's kind of in between being
36:51
bearish or like more ultra conservative and ultra
36:54
aggressive. Had they done the 2% allegation
36:57
instead of just the 110th of a percentage point, they would
37:00
have made $4 billion in just that investment alone.
37:04
Obviously, you know any investment into bitcoins better
37:07
than no investment. And they're one of not only just
37:09
a top five pension fund in the United States, they are they're
37:13
almost fully funded. They're at 99% funded pension,
37:16
which is unheard of in the pension space Don Bay always
37:19
brings up. If you're at 40% funded,
37:21
basically that means you're going to go bankrupt.
37:23
It's it's kind of like you have to pay out people that are
37:26
currently retired and you don't have enough money to to keep on
37:29
water. Normally 80% is good, 70%'s in
37:31
danger, but anyway like at 99% is like doesn't get much better
37:35
than that. If they're over funded, they
37:37
have to sell other assets to bring their allocations down to
37:39
100. So given you guys the land, land
37:41
of the pension fund world talking with Don Bay all the
37:44
time. But yeah, no, I think this is
37:45
incredibly bullish. And also the great thing is
37:48
they're a top ten pension fund in the world and they're
37:50
succeeding and they're they're increasing their success by
37:53
adding Bitcoin to it. So if you don't think this is
37:56
turning heads at CalPERS, you know the California pension
37:58
fund, the largest pension fund in in arguably the world,
38:01
definitely in the United States. So I think like people are
38:04
waking up to the idea of like oh crap like this is real and we
38:07
don't want to be the last punch and pension fund to get on
38:09
board. So I think a lot of people are
38:11
are talking or a lot of pension funds are talking behind the
38:13
scenes like we need to seriously look at and we may need to make
38:16
an investment sooner rather than later.
38:18
So I'll just leave it at that, Nico.
38:19
No, beautifully, beautifully said.
38:22
We do have a bit corner in the chat.
38:24
Z Logic says that away. Here we go.
38:27
Where where is it? He just said have they, the
38:30
ETFs, published their proof of reserves, which only to my
38:33
knowledge, I think Bitwise is the only one that's published
38:35
their address, all the other ones haven't they, they've
38:37
obviously said the shares they have, but I don't know if that
38:39
was the question that you were asking.
38:40
Yeah, I was looking for someone, anyone, someone else said that
38:43
that's not actual, you know, real Bitcoin exposure.
38:47
I completely lost a comment. It's it's because it's in the
38:50
ETF, so they're not holding their own keys.
38:52
Yeah, 100%. So that's a really good point.
38:54
But what I would say it here it is, is Z Logic.
38:57
There we go. Is an ETF really invested into
39:00
Bitcoin? Well, no.
39:03
Buying spot Bitcoin and taking Bitcoin into self custody is the
39:07
investment. However, what I will say is that
39:10
some institutions by law, they can't do that, right?
39:14
That's not so much their fault. That's just like how the law
39:18
works in in some jurisdictions. And then what I will say on
39:23
another, you know, on another perspective is that I think all
39:27
roads lead to Bitcoin. I think eventually you dip your
39:30
toes into the ETF. I think eventually, especially
39:34
if you're an individual you know and you're buying the Bitcoin
39:37
ETF, there's absolutely no reason why you should be doing
39:40
that. I understand if you're a large
39:43
institution and the custody aspect starts to freak you out a
39:47
little bit, especially if you don't have the technical know
39:49
how or if you're legally obliged to do that.
39:53
But if you're an individual, if you're a wealthier, an
39:55
individual, you know especially like one of the older
39:58
generations, there is absolutely no reason as to why you
40:04
shouldn't be buying spot Bitcoin and taking it into self custody
40:08
if you can send a wire transfer. If you can cook yourself a steak
40:12
or make scrambled eggs, you can 1,000,000% take Bitcoin into
40:17
self custody. It's not that crazy anyways.
40:20
Bit Bedro, What's your take on all this, brother?
40:23
Well, look, I'm, can you hear me?
40:26
Yes, I'm pretty proud to live in the city of Fort Worth.
40:31
I got to tell you Mayor Maddie Parker also shout out to her,
40:36
she's the first, she was the first mayor to raise her hand
40:39
and say look our municipalities going to mine Bitcoin and and to
40:42
your point they were not allowed to keep their mind Bitcoin.
40:46
They were not allowed to custody Bitcoin.
40:48
They have to custody legal tender and so they had to sell
40:52
their Bitcoin and and essentially make a profit and
40:56
then and stick up a very symbolic, you know, flag in the
41:00
sand as a municipality adopting Bitcoin but but yet not being
41:05
able to fully custody the asset. So adoption is this long road
41:11
and we're going to get everything from a city, state
41:16
all the way up to you know nation states.
41:19
The question you know as we progress through these steps of
41:24
adoption, I like to to say it's much like real estate.
41:28
You know an individual's a house, you know then you got a
41:31
hotel then you got a casino. At some point you know we're
41:36
reaching things that look like actual counties and states in
41:41
size as far as like the the numbers and the zeros when we're
41:45
trying to explain relative size or something.
41:49
And so when we enter into pension funds and foreign wealth
41:54
funds, we're very, very close to G8 country size funds.
42:00
And when we get to the G eights then we're we're very, very you
42:03
know our our next step up is first world currencies.
42:09
So the adoption curve is very fast for for something that is
42:13
as nascent as Bitcoin and it's probably because have you guys
42:19
done the clip of the guy that says it's a it's a currency of
42:22
distrust. That guy, I mean he a a perfect.
42:28
Harare or something, Yeah. Yeah, yeah, perfect sophistry.
42:32
But I mean, it's so comical because he's almost making the
42:35
damn point. Why is this so amazing?
42:37
Because it's a currency of distrust.
42:39
You're damn right. Because China doesn't have to
42:41
trust India. Nor would they ever want to
42:43
trust India to do Massive foreign transactions.
42:48
But now they can and now they can do it.
42:50
And and more importantly, a small nation like Bhutan or a
42:54
small nation like a nation like an island nation can settle
42:58
their transactions with other small island nations and not
43:01
carry the risk of sending that gold on a little ship to get
43:05
pirated away by actual pirates. I mean it's just better
43:09
technology all around. So you know it's it's super
43:12
interesting that that we are you know living this moment of of
43:19
mass adoption. We are very, very clearly
43:24
starting to pick up steam on that S curve and it'll be very
43:28
interesting where the top lands. Yeah, 100%.
43:32
Yeah. And I, I, I, I, I agree with
43:34
that and the S curve adoption in in reference like I I I think
43:38
we're we're in the process of of jumping the chasm between the
43:43
early adopters to the early majority.
43:46
I think that we're in the very, very first innings of that and
43:50
it's incredibly exciting to say the least.
43:53
Anyways guys, we still have a hell of a show lined up for you
43:56
guys. We're going to talk to Bit Betro
43:58
about all the stuff that he's working on.
44:01
Bit Betro, I have this rodent written down right here.
44:04
Turns gas into Bitcoin or helps companies turn gas into Bitcoin.
44:09
So we have a lot to cover. Stay tuned but in But in the
44:13
meantime smash the like button. If you guys are enjoying the
44:15
show, especially on YouTube rumble and X Smash the like
44:19
button helps with the algos. I do want to give a very special
44:23
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One of the best ways to reach me is by sending a message, sending
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So scan the QR code or check the link in the video description.
45:34
All right everybody, let's get to the culture.
45:36
We have a lot to talk about. The Daily Culture.
45:47
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So check out kaboom Racks today. Anyways, bit Petro.
46:53
What's up man? Dude, I'm.
46:54
I'm so hyped that I saw you in at Bit Block.
46:58
Boom. We crossed paths.
46:59
We were having a discussion. It was kind of sad that I didn't
47:02
get to see Chris at one day. I think I'll see him in
47:06
Nashville. I'm pretty sure, but But yeah
47:09
man, I just wanna get into what your purpose is, why you're a
47:13
bitcoiner. What are you contributing to
47:15
this space? Because this is what the culture
47:16
is all about, to talk to bitcoiners from all walks of
47:20
life. So I'm gonna pull up your
47:21
website quick. By the way, for anyone who's not
47:23
in the know, Bit Betro turns gas into Bitcoin.
47:27
That's what it's about. He provides energy services for
47:31
Bitcoin miners. So, bit Betro, why don't you go
47:34
when you go down a little bit about what that means, right?
47:36
Because like and I and I and I pick the, I pick the subjects in
47:41
the numbers segment on purpose, right?
47:43
In regards to all these nation states mining Bitcoin using
47:46
different energy methods. Some were using hydro, some were
47:50
using geothermal, some were using natural gas.
47:54
So, Bitpetro, it's all yours. Yeah.
47:58
So first I want to plug tomorrow's event because it's in
48:01
person and I I really want to focus on that, that type of
48:08
approach. So I.
48:11
So let's start, let's start with that before we get into into
48:17
your into the energy service that you provided to mining
48:20
companies. So yes, you're a host team.
48:22
It's very tight. It's it's.
48:23
They're all one and the same. OK.
48:25
Yeah. Yeah.
48:26
So, so as part of what I do, I, I I try to do like very in
48:32
person events to to touch it, feel it tasted right.
48:38
So I run the Fort Worth Bitcoin meet up it's called for Bitcoin.
48:42
As part of for Bitcoin I do education for the energy
48:46
industry from energy industry individuals to energy industry
48:52
individuals. So we are talking Bitcoin, but
48:55
we are talking in their language.
48:56
And so tomorrow's event is the 4th one of these that we hosted,
49:00
the Petroleum Club. I bring, you know, a sponsor, I
49:06
bring a panel and usually a pretty awesome moderator and and
49:12
we get to talk about the real world application of Bitcoin
49:14
mining and Bitcoin lightning and Bitcoin transactions and Bitcoin
49:19
as a store of value for these energy industries and energy
49:26
components. Because there is upstream,
49:28
there's midstream and there's downstream and there are
49:30
different applications for Bitcoin for each one of those
49:34
sectors. So this is about kind of
49:38
spreading the orange pills from within because full bellies are
49:41
open ears. And so if you come in and you
49:46
are a member of the petroleum club, you don't pay anything,
49:49
you just attend for free. And so that's really the goal is
49:52
to to bounce this lunch around different petroleum clubs in the
49:57
state of Texas and and get to the mid level like you know
50:02
managers and and engineers and and really teach them the
50:06
application level so that they can take it up and give that
50:09
executive guy the, the grandiose idea that he's going to solve
50:12
his company's financial troubles by monetizing is stranded gas.
50:21
Got you. Did we lose Chris?
50:24
I think we lost Chris. Oh, I'll be right back.
50:28
OK, interesting. And let for for the for anyone
50:32
who's not in the know. By the way, the event is July,
50:36
May 16th, 2024. So it's tomorrow.
50:39
It's tomorrow. Yeah, it starts at 11:30 AM.
50:43
It's gonna be at the Patrolling Club of Fort Worth or Fort Worth
50:46
at 777 Main St. Fort Worth, TX.
50:51
You wanna get your tickets? Obviously, I'm gonna put the
50:54
link by the way to this event in the live chat so you guys could
50:59
check it out. If you guys are in Fort Worth
51:00
into this meet up. OK, So what type of people are
51:04
gonna be there? Depetro.
51:06
Like what? You know, Like who?
51:08
Who do you have in mind? Like like who who.
51:11
Like for example, if you have no background whatsoever in, you
51:16
know, in mining and energy and any of this stuff, is this an
51:19
event you'd wanna you wanna go to?
51:22
Yeah, absolutely. I mean the the again, the target
51:24
audience for me is not the bitcoiners that are buying
51:27
tickets that that's those are the nice to have people.
51:30
The target audience is those members of the Petroleum Club
51:33
that are normal attendees who are typically going to, you
51:38
know, they're going to be going to this place anyway.
51:41
This is a social gathering spot for them.
51:44
They're used to making continuing education courses at
51:48
these events and so we're targeting them because we want
51:54
to educate them. Now that gives us a much broader
51:58
platform because the Petroleum Club is also tied to a lot of
52:01
banking, a lot of PE firms, a lot of attorney firms.
52:06
And so we we are covering a very wide spectrum of professionals
52:09
in the energy industry. I also, because my job in the in
52:15
in the energy space also ties to land acquisitions and power
52:19
acquisitions for Bitcoin miners. I also have ties to utilities
52:23
that I'm bringing to these meetings as well as ties to
52:28
energy brokers and other components of the electric
52:31
energy network side of life, not just the oil and gas energy
52:35
network side of life. And and you know, finally we
52:38
have you know the actual operators that are either the
52:41
miners or the oil and gas companies that are that are
52:45
attending these events. So in the case of a miner, it
52:47
might be you know like Chris Alfano 360 Mining, he's going to
52:52
be one of our speakers, Dan Morrison Amalgamated Sludge,
52:56
another one of our speakers, they both mine Bitcoin with oil
52:59
and gas actively do this. And so Jay Corley, my man from
53:04
from Digital Wildcatters is going to be hosting actually
53:08
moderating the of the panel. So we we're all oil and gas
53:13
people, but we're we're trying to speak to our own audience,
53:18
you know the the guys in the room that are bitcoiners as well
53:21
as kind kind of trying to keep the language at a place where
53:25
it's accessible to the oil and gas guys.
53:27
So you know we're not going to talk about block height and
53:31
we're not going to talk about hashing algorithms.
53:33
We're going to talk about dollars per MCF and we're going
53:36
to talk about timelines to deploy and and and bottom line
53:40
economics. Awesome.
53:42
Awesome. Yeah.
53:42
No, this is, this is very, very, very cool stuff.
53:47
And you know, damn, bro, I wish I was in oh man, I can't be two
53:51
places at the same time, unfortunately.
53:53
But this is definitely something that I don't I want to go to.
53:56
I just, I want exposure. I got into the industry via
53:59
mining and then I transitioned to media around 2020.
54:04
Wish I stayed. There's a part of me that I wish
54:05
I stayed in mining media is very media is very satisfying once
54:11
you build a base, but building the base is horrific 'cause you
54:14
don't make any money for two years.
54:16
Whereas mining, you know, it's not necessarily that you'll
54:19
break. It's not, it's not necessarily
54:21
true that you'll break even very quickly, but at least you have
54:23
the cash flow coming in and it's very, it's very interesting
54:28
sector that you know, I wish I was still still a little bit
54:31
more involved in. OK.
54:33
So you say that you provide energy services for Bitcoin
54:37
miners. Can you talk a little bit about
54:40
that? Like, So what would be your
54:42
traditional client? Is this an oil and gas company?
54:46
Is this a Bitcoin miner that doesn't know an oil and gas
54:49
company? Are you just like the guy that
54:52
knows the guy that knows the guy that knows the guy that connects
54:55
this guy with this guy and then that guy with that guy?
54:59
What, what, what? What is this exactly?
55:01
Yeah. So in the world of oil and gas,
55:03
my my job is considered a Vice President of land and that
55:08
entails doing title research to determine the ownership of the
55:14
mineral estate, not just the the surface estate.
55:19
And so acquiring the property, identifying the property where
55:26
an oil and gas company would want to drill a well, say either
55:30
through geology and geophysics. When you are doing statistical
55:35
analysis like mapping and and you're trying to reduce that
55:39
down to a single number, you're essentially making heat maps.
55:42
And so part of my services is taking the knowledge that I've
55:46
I've gotten from mapping and using big data and analytics to
55:53
create heat maps for oil and gas.
55:55
Now I can do that for Bitcoin miners and the grid.
55:59
And So what I can do is I can say, let's find the pieces of
56:03
land that are cheap, that are next to substations where the
56:09
substation is far enough away from a from people, but close
56:15
enough to a power generation facility.
56:17
And so we'll break that down into individual heat maps, and
56:20
then we stack heat maps, and then I like to call it the
56:24
orange brick road. I love it, man.
56:26
Dude. OK, so you're you're speaking
56:28
about maps. Maybe I'm going to totally
56:32
butcher this, but is this what you're referencing?
56:36
That's that is one of the maps that I make.
56:39
That is, what are we? Look, What are we?
56:41
Looking at Dude right now. OK, so I I didn't say like, why?
56:44
Why is Florida green? All right, What do you have
56:46
against Florida, bro? Why?
56:48
Is those are Isos? OK, those are Isos.
56:51
Those are. So those are your electric grids
56:54
in the United States. OK, and and so and.
56:58
Why would someone use this map? Like what would be?
57:00
What would it be useful for? And the.
57:02
As you as you slow these, hang on, hang on, hang on, hang on.
57:04
You're going too fast. You're going too fast.
57:06
You got to slow it. Slow it down.
57:07
Yeah. So the the the map is showing
57:11
you a smorgasbord. And what it is, is all of the
57:15
utility data for the United States energy grid.
57:18
Now I am parsing a fair amount of it because of security
57:22
reasons, but but at the end of the day what you're looking at
57:27
is every electric network, every pipeline, every power line,
57:32
every power station by size. So the symbol on the left hand
57:37
side, you see the chart, you go over to the chart and Scroll
57:40
down a little bit, you can see the megawatts.
57:42
And so the bigger the solar farm, the bigger the symbol for
57:45
the solar farm, the bigger the wind farm, the bigger the symbol
57:47
for the wind farm. And so then the the power lines
57:51
are then the different colors and that gives you the different
57:54
size of power lines, transmission distribution and
57:57
whatever the same thing for the pipeline.
57:59
So that all that shit that you see offshore right there, that's
58:01
all natural gas and liquid pipelines that are coming off it
58:06
from the from the Gulf Coast of Mexico into Louisiana and Texas
58:11
for refinement? Mika's just jealous that
58:14
Florida's green and not orange. Now, there is a ton going on
58:20
here, as you can see. One of the things that I'm
58:21
showing you there is heat maps. If you zoom out right to about
58:25
where you can see Texas and Florida together, you're gonna
58:28
see a density towards the northeast.
58:30
If you just scroll up towards the northeast, right, like that
58:34
density up there, that's because there's a lot more power plants
58:38
up there because that is the the, the need for power from
58:42
those large metro areas, right. And So what you're doing there
58:46
is you're saying okay, where there is a lot of power being
58:49
produced, we're going to light that up and we're going to say
58:52
that's a heat map. Now I can take that heat map
58:56
approach and give it to any specific number.
59:01
Now, that could be, say, the porosity of a of a field or a
59:06
reservoir. It could be the permeability of
59:09
a reservoir. It could be the elevation of the
59:12
reservoir. It could also be the distance
59:16
from the power plant to the substation, or it could also be
59:20
the distance of the power plant to the substation minus the
59:23
distance of that substation to a population density.
59:28
So I'm assuming that this is useful for if you're scouting
59:33
for miners, right? Sorry, Scouting for potential,
59:37
you know potential sites is Is this what this is useful for?
59:40
This is this is a prospecting tool that I have built that that
59:45
basically allows you to prospect for the best mining sites in the
59:49
lower 48. Dude, I'm just in my head.
59:52
I'm. I'm.
59:53
I feel like I'm I'm I'm becoming Daniel Plainview from you know
59:58
there will be blood drink your milkshake And I'm just.
1:00:02
I will drink your milkshake. Yeah, exactly.
1:00:05
I'm just like. One of my heroes.
1:00:08
Of course he is. So you know and I'm and I'm just
1:00:11
like looking at this and I'm like wow, dude, like there
1:00:13
there's a lot of opportunities there's a lot of things that I.
1:00:16
Take your milkshake and I drink it up.
1:00:20
There's a lot of opportunities that have yet to be tapped.
1:00:23
Is that, is that correct? Would be that be a correct
1:00:26
assumption to make? Yeah, look, at the end of the
1:00:30
day, the, the name of the game here is that, you know, there is
1:00:38
in the world of oil and gas, there is the production of oil,
1:00:44
gas and water. Now that gas is going to come in
1:00:49
different forms. It's going to come in liquid
1:00:51
forms and it's going to come in gaseous or or mixed hydrocarbon
1:00:58
forms. What do I mean?
1:00:59
I mean like longer chains of hydrocarbons.
1:01:02
So you have your hectane heptanes and your octanes versus
1:01:06
your hexanes which are your really small ones, your 6 carbon
1:01:09
chains. And so when you are producing
1:01:14
this stack of things that that can look like, you know, green
1:01:20
to brown liquidy stuff all the way to just completely crystal
1:01:24
clear liquid to a natural gas stream, all of that stuff can
1:01:29
come out of one well including water.
1:01:33
And so you have to separate these elements out and then you
1:01:36
are selling the liquids for a higher price than the gas.
1:01:40
And so for an oil company that roughly equates about 80% of the
1:01:44
profits are in liquids, 20% of the profits are in the gas.
1:01:47
Gas is a problem, OK, unless you're a pureplay gas company
1:01:52
which makes you interesting and and then you're typically
1:01:57
looking at a company that is making the majority of its of
1:02:00
its income through the liquid sales side of their operations.
1:02:06
And so from a larger play in larger basin or like we're not
1:02:13
talking about an individual well, but we're talking about
1:02:15
like the Barnett Shale or the Permian Basin.
1:02:21
What happens is you develop the really oily stuff first.
1:02:25
So if you think of a bullseye, we're going to go for the, we're
1:02:27
going to go for the bullseye first because that's liquid 1st.
1:02:31
And as we go out in prospect areas, we are basically getting
1:02:37
more and more gassy zones. And so the gas to the oil ratio
1:02:42
of that of that production goes higher and higher and higher to
1:02:46
a gas associated with the oil. So especially when we went from
1:02:53
traditional reservoirs to the shale revolution, this is true.
1:02:57
Like, especially true. And so the United States has
1:03:01
become the world's top exporter of energy thanks to this shale
1:03:06
revolution. And in it we have given
1:03:09
ourselves this access to abundant, cheap, clean natural
1:03:14
gas as an energy source. The issue is that is not how
1:03:18
it's perceived. And so we burn it.
1:03:22
And I literally mean we combust it.
1:03:26
In some cases we vent it and and these are normal practices.
1:03:32
There's nothing new about this like at A at a tank battery like
1:03:35
one of the companies that that that I was involved in and that
1:03:38
I still kind of currently run is a detection company that does
1:03:43
optical gas imaging. And So what that means is it
1:03:47
looks at the absorption of energy from the air of the
1:03:52
molecules and it can see the invisible gas stream.
1:03:55
And and every single oil and gas tank like a storage tank for for
1:04:03
oil that holds oil is going to let off gas and and it does this
1:04:10
because there's gas suspended in that oil.
1:04:13
And so in order to not have a bomb, you have to have a little
1:04:16
hatch that goes farts and farts. And so that farting is really
1:04:23
important to oil gas. Like you would have bombs if you
1:04:26
didn't have that farting. And so you have that associated
1:04:29
natural gas leakage that you have across just everything.
1:04:33
And then you have the associated production of flare gas, which
1:04:37
is one part of the equation that is more of I'm producing oil,
1:04:43
there's not a pipeline nearby. I have to do something with the
1:04:47
gas that comes with the oil because the more gas that I
1:04:50
produce, the more oil that I produce and I want to make more
1:04:52
money. And So what am I going to do,
1:04:55
burn the gas because that's the easier way to to fix the problem
1:05:00
rather than bringing a big expensive pipeline that costs a
1:05:03
lot of money to get the the right of ways to then put the
1:05:07
pipeline in and then produce that for.
1:05:11
I mean, if you guys have seen a shale production, well it's it's
1:05:14
not very sexy. It just kind of goes so for for
1:05:19
the production of that well, you're going to try to get the
1:05:24
majority of that production upfront.
1:05:25
For a pipeline company that means they're going to have very
1:05:28
little use long term for that asset and they're not going to
1:05:32
do it. So here comes Bitcoin and it
1:05:37
says I don't care, give it to me.
1:05:39
Amen to that. Amen, man.
1:05:41
Bitcoin. Bitcoin is Daniel Plainview.
1:05:43
Anyways, guys, we are getting to the top of the hour.
1:05:46
I do want to thank our guest bid.
1:05:49
Betro, thank you so much for joining us today.
1:05:51
I really, really appreciate it. Why don't you tell everybody
1:05:53
where they can find you on the interwebs?
1:05:56
Yeah, bit Petro dot App is my website.
1:05:59
You know tomorrow please come out to the meet up for Bitcoin
1:06:03
is the name of the meet up and the Fort Worth Petroleum Club is
1:06:09
where we're hosting it. Our meet up is every third
1:06:13
Tuesday of the month here in Fort Worth and then these try to
1:06:18
be more focused around the moving them around the state and
1:06:22
educating the oil and gas industry from within.
1:06:25
Beautiful, beautiful. Beautiful.
1:06:26
Well, dude, thank you so much for joining us, man.
1:06:28
Really, really appreciate it. Keep up the good fight.
1:06:32
Keep up what you're doing. You know, energy and Bitcoin are
1:06:35
a match made in heaven. I also want to thank my Co host
1:06:38
today, Chris Alamo, thank you so much for filling in for Opti.
1:06:41
Chris, why don't you tell everybody where they can find
1:06:43
where people could find you on the interwebs?
1:06:45
Yeah, you can find me at Noster, you know my Nip 5.
1:06:48
Or you can just find me at Chris Alamo on there or on Twitter at
1:06:51
Chris Alamo and then the number six.
1:06:53
So stay on the good fight, Stay humble.
1:06:56
Stacks at. Beautiful.
1:06:57
Beautiful. All right, guys, that was our
1:06:59
show. If you enjoyed the show, you
1:07:00
know what to do. Smash that, like, but consider
1:07:02
subscribing if you feel like we provided you value.
1:07:04
But the number one thing you could do to help push the
1:07:06
peaceful Bitcoin revolution is share Bitcoin content.
1:07:08
Just get the message out there. Love you all.
1:07:10
We'll be streaming live from the Canadian Bitcoin Conference
1:07:13
either. Maybe we'll have it set up for
1:07:16
you guys tomorrow, so we'll be streaming from the conference.
1:07:19
But Friday for sure. But until then, guys, sit back,
1:07:23
relax, stack some sats and love you all.
1:07:25
We'll be back tomorrow. Peace out, everybody.
1:07:29
Episode was brought to you by bitcoinwell.com on a mission to
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