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Bitcoin at Risk? | Michael Saylor's Shocking Warning | Simply Originals · Simply Bitcoin

• 0:00
  Do not F with Bitcoin. Defend the network.
• 0:04
  Don't F with the network. Make sure the network is
• 0:07
  healthy. Don't introduce risks,
• 0:12
  unnecessary risks to the network that might infect it with with
• 0:16
  the disease. It appears Michael Saylor has
• 0:19
  just drawn a line in the sand and has joined the spam wars
• 0:24
  debate. Now this clip we're about to
• 0:26
  watch and react to today is from a 2024 interview on what Bitcoin
• 0:31
  did. Actually think we did do
• 0:33
  something on this last year, but what makes it timely now today
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  is a guy on X Bitcoin Anon did this edit, and it just so
• 0:43
  happens that Michael Saylor retweeted it, giving a subtle
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  nod to knots and a possible blasting at what developers are
• 0:50
  doing in Core 30. But there's more in here.
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  Did Michael Saylor hint that what Core 30 is doing could
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  bring about the dumping of their Bitcoin holdings and bankruptcy
• 1:03
  for strategy? And hypothetically, what could
• 1:06
  that mean for BlackRock? Is Bitcoin Core 30 on the brink
• 1:10
  of collapse? Let's go, ladies and gentlemen,
• 1:13
  we have a big one today. Sailor enters the spam wars.
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  There's like a new guard of Bitcoin developers and an old
• 1:26
  guard of Bitcoin developers. The old guard's very
• 1:29
  conservative and the new guard is wanting, wanting to move out
• 1:33
  of the way because I want to do things.
• 1:34
  I want to build things. If you were to ask me my opinion
• 1:36
  on Bitcoin development, I would say consider it and
• 1:41
  conservative. And I think ossification is a
• 1:43
  straw man put forth by people that have a progressive
• 1:46
  proposal. And if someone says hold it now
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  let's think about it, right? Like I say, well, you just, you
• 1:52
  just don't want to change anything.
• 1:54
  Well, I mean, the truth is I I think it's a mistake to presume
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  that you have to change the protocol in order for Bitcoin to
• 2:03
  be successful. Right.
• 2:05
  OK. So you could almost like
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  partition this between what is codes and expansion of what the
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  protocol to do can do versus when like you said, integrity
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  and security, protection of the network from catastrophic
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  failures, attacks, hacks. Are you seeing?
• 2:25
  Those are two different things. Defend the network.
• 2:27
  Don't F with the network. Make sure the network is
• 2:31
  healthy. Don't introduce risks,
• 2:35
  unnecessary risks to the network that might infect it with with
• 2:39
  the disease. Let let me just make a point
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  about philosophy though. The Bitcoin protocol is the
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  essential governance. It's the government of Bitcoin,
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  the nation if Bitcoin was a nation.
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  The protocol is the body of laws that govern the nation, and the
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  protocol has no statute of limitation.
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  So for all practical purposes, when you put something in the
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  protocol, it's like writing a law that might very well last
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  1000 years. So that being the case, if you
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  ask me what is my philosophy about politics, I'm in favor of
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  small government, not big government.
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  I'm in favor of less, not more. I'm in favor of free markets,
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  not government mandated agencies.
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  If there's a choice between should the government do it or
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  should a corporation or a free actor do it, I think the
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  government should stay out of it.
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  And in the same way I'm not in favor of big protocol, I'm in
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  favor of small protocol. I'm in favor of do the minimum
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  if if you believe the government should do the minimum to control
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  your life, you believe that the protocol should do the minimum.
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  Because it's very hard, you know, to reverse this.
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  And if you look at the history of civilization, every empire
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  starts small and struggling. It's the underdog and you're
• 4:03
  trying to struggle to live. And then at some point they win.
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  And when they win, they conclude that they're they're the most
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  virtuous. And then they get rich.
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  And then when they get rich, they start creating more laws.
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  And those laws get to be ridiculous and they create
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  inflation. And I think most people in the
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  Bitcoin community are against inflation and I think we're
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  against regulation. And the whole, the whole irony
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  is Bitcoin is a technology to escape oppression of inflation
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  and regulation. So why would we want to
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  encourage inflation in the protocol?
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  Is it not absolute hubris to hold this belief that you have
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  to change Bitcoin in order for Bitcoin to be successful?
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  It seems to be a common trope. You know, among shit corners,
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  NBC's small blockers, and all the other bullshit.
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  I agree with Giga Chad, you don't with the network.
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  We have one shot at this. Bitcoin or slavery is not
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  entirely hyperbole. Jpeg's and stable coins do not
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  empower individuals, they don't end the Fed and there are
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  distractions to keep people poor and to extract value from people
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  to then enrich themselves. It's the same old game.
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  Basically. Bitcoin Core are like the pigs
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  and animal farm. Some animals are equal but some
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  are more equal than others. Bow before us.
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  Well how about you shove your stupid rainbow shit coining flip
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  flops up your corn holes? Now let's see what else Sailor
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  had to say about inflation at the protocol level and what that
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  can lead to. If I dump another million lines
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  of code that does another when I'm adding functionality and
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  performance and scalability via the features and I'm writing all
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  this code, I'm in creating inflationary dynamics and the
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  protocol, what is inflation? I'm I'm devaluing something
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  else, whatever that else is. I might be undermining the
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  security. I might be undermining the
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  simplicity. I might be in the protocol is
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  encroaching on the free market and code is law, right?
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  When you write code, you're just writing a law in cyberspace,
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  right? I mean, software developers are
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  the lawyers of cyberspace. When they write law and you
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  write code for your application like Cash App, it's a layer 3
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  app. You're risking your shareholders
• 6:34
  money and your corporate credibility, but you're not
• 6:38
  going to crash the Bitcoin network.
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  When you write code for layer 2, you've got to be a bit more more
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  consensus driven because now there's 100 or 1000 other
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  companies that have to work with your Lightning or work with your
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  whatever and you have to go 100 times slower.
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  But when you write code for Layer 1, the protocol today, we
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  have $1.4 trillion and we are in the third stage.
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  I think the second stage was like the block size wars around
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  then where there was something very valuable and there was some
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  serious issues to be worked out and you had multiple camps and
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  the protocol did suffer inflation.
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  SegWit was inflation and Christ, it took the block from one MB to
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  4 megabytes, right? So you could do things with a
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  SegWit that you couldn't do before.
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  It wasn't necessarily good for the Bitcoin miners, right?
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  The point is if you increase the block size and and you change
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  that dynamic, it's not clear you didn't bankrupt a bunch of
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  Bitcoin miners that would still be in Business Today.
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  So you know, we can go back and forth, but it stands to reason
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  that when you add functionality or scalability or performance,
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  you're actually depriving someone else in the ecosystem of
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  their property rights of their opportunity.
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  So that is inflationary and it inflates.
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  If you, it'd be obvious if you just took 21 million to
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  42,000,000, that's that's first order inflation.
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  But when you increase the bandwidth from one MB blocks to
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  four MB blocks, that's second order inflation.
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  If I take the transaction bandwidth up by a factor of 100,
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  that's hyperinflation of the bandwidth in the second order.
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  That would bankrupt all the Bitcoin miners.
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  And so if you bankrupt all the Bitcoin miners, you know,
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  there's an ethical lapse, there's an economic lapse, and
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  there's also a thermodynamic or a security lapse.
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  And not only are you depriving the Bitcoin miners of their
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  property, you're also depriving the Bitcoin holders of their
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  security. And you're undermining the
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  political stability, the economic stability of the
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  holders as well as the miners. And you're doing it maybe to
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  create fast blocks or more bandwidth.
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  I accepted the risks of the protocol.
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  When someone changes the the protocol so as to bankrupt me,
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  right? They have actually deprived me
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  of my economic rights and introduced a risk I didn't sign
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  up for. Now that was a doozy.
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  Risks that I didn't sign up for. That would eliminate his and
• 9:14
  Minnie's faith and trust in the stewards of the network, and
• 9:18
  possibly in the network itself. Kind of like this.
• 9:21
  Sacrificing sound money for Jpegs and arbitrage data is like
• 9:26
  going to proof of stake or the Purge or the Surge and the
• 9:29
  splurge and all the turds that come springing out of the mother
• 9:34
  of all shit coins. Ethereum.
• 9:38
  May it, may it rot in hell. But ironically a lot of these
• 9:43
  shit coining degenerates at course seem to admire Mr.
• 9:47
  Vitalik Buterin. Maybe it's the rainbow flip
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  flops, but it probably explains their desire to well, act
• 9:54
  against consensus. Now we got to get to this clip,
• 9:57
  but before we do, and before you tell me to GFY in the comments,
• 10:01
  look at our likes 3 or 4 times. Maybe I pumped those numbers up.
• 10:05
  Those are rookie numbers in this racket.
• 10:06
  Let's take a quick second for our sponsors who keep this show
• 10:09
  on the air over at the Bitcoin way.
• 10:11
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• 10:14
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  pulls the plug. Don't wait until it's too late.
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  slash simply to learn one more and get 25 basis points off your
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  first loan. That's that's the ethical
• 11:00
  distinction, which converts something in some cases from a
• 11:03
  commodity to a security. I'm a lawyer.
• 11:06
  I go to London, I lobby a politician to pass law making it
• 11:12
  illegal for soccer clubs to operate in Bedford.
• 11:14
  And in response, the lawyer passes the law because I gave
• 11:17
  him a campaign donation and I explained how I wanted to turn
• 11:20
  Bedford into the next Disney World and it's going to bring
• 11:24
  jobs at Disney. And I think that you would be
• 11:26
  irate if someone, if, if a lawyer or a lobbyist was
• 11:32
  lobbying for laws that impact your family, your business, your
• 11:36
  friends. And, and I would be like, oh,
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  it's just the free market. OK, I went to DC and I got a law
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  passed that made the pipeline illegal.
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  Oh, who paid me to get the law passed?
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  The other pipeline. So there's one guy that's got
• 11:49
  $50 billion because he's got the only pipeline and the and the
• 11:53
  second pipeline, pipeline was shut down by some lobbying in
• 11:57
  DCI view that as corruption. And so I think that if you're
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  able to deprive some economic actor in your nation or your
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  network of billions of dollars or millions or hundreds of
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  thousands or trillions of dollars of economic property
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  rights by lobbying to actually change the law, right?
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  I think that that that introduces moral hazard.
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  And so I think that I think that protocol changes, for example,
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  proof of work to proof of stake, it destroyed the Ethereum
• 12:32
  miners. It was a very targeted protocol
• 12:36
  change that basically deprived, you know, what's it worth to
• 12:40
  basically do Ethereum mining? Well, it would have been worth
• 12:42
  $100 billion. What's it worth today?
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  0 Bitcoin would be a lot better if the protocol was stable.
• 12:50
  If you sacrifice the performance and the stability of the network
• 12:55
  to introduce altcoin crypto, you know shit coin features into the
• 13:00
  network, right? You've deprived people of their
• 13:03
  rights. If you hijack the Bitcoin mining
• 13:06
  net hardware in order to do other applications other than
• 13:11
  Shaw 256 hashing to defend Bitcoin, you've undermined the
• 13:15
  security of the Bitcoin holders. You have destabilized the
• 13:21
  network. You may have introduced all
• 13:23
  sorts of attack vectors for hackers and also also legal
• 13:29
  risks, regulatory risk and nation state attack vectors.
• 13:33
  And so there are lots of protocol changes that actually
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  destabilize the network or they deprive some participants of the
• 13:43
  network of their rights to the benefit of others.
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  And my position is I just don't think we should deprive people
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  of their rights and I don't think we should use code in
• 13:56
  order to advantage 11 special interest group to the
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  disadvantage of everybody else. Now a couple things that stood
• 14:08
  out to me in that one that would that would be the two words
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  moral hazard, moral money, crypto.
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  What does that have to morals in that?
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  What the does that have to do with this stuff?
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  Well, actually sound money has integrity, it has value.
• 14:23
  It enables and empowers individuals.
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  It protects them from the most insidious creature entity on the
• 14:32
  planet in the central banks that have stolen time, wealth, energy
• 14:36
  from the public at in medium, especially since 1913,
• 14:41
  temporarily went off the gold standard to to fund World War
• 14:44
  One. And of course we had Woodrow
• 14:46
  Wilson, the worst president in history.
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  All these things couldn't live with sound money because he
• 14:50
  didn't have integrity and value. You see how this works.
• 14:54
  And then you see how when when you start to degrade the money,
• 14:58
  when the money loses integrity and value, what happens to
• 15:01
  society like hell, obvious is it?
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  This is what happens. Possibly not saying this, this
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  in and of itself, but this sets a pathway towards something.
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  And I think that line that he talked about destabilize the
• 15:15
  network. That's that's an interesting
• 15:17
  line because I've always kind of thought if there was, there was
• 15:20
  no, there would be no way. Like Bitcoin in and of itself
• 15:23
  can't be with unwithable money. The only thing that could slow
• 15:27
  down, deter, do something stupid would be to introduce some sort
• 15:31
  of social attack to get people to act not in their own best
• 15:35
  interest, either out of fear, coercion or just, you know, sly,
• 15:40
  roundabout ways. And this kind of feels like that
• 15:42
  kind of a little bit from both sides, going a little over the
• 15:45
  top. But maybe that's the purpose of
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  it. But we'll get to more of that in
• 15:49
  just a second. Because guess who else signed up
• 15:51
  for Sound money? Uncle Larry.
• 15:54
  And guess who orange pilled him? Michael Saylor.
• 15:57
  And we used to bring in all these different people who were
• 16:01
  big believers in it, like Michael Saylor from
• 16:05
  Microstrategies. I mean, Michael came to her
• 16:07
  office with his with the stock was in the teens, but he was a
• 16:11
  huge believer that transformed his company.
• 16:13
  I mean, I could just say all these different people came in
• 16:15
  and talked and then we became, you know, we, we became a leader
• 16:20
  in working with the SEC and, and try and try to move forward in
• 16:25
  this and Fast forward out a little more than 18 months when
• 16:30
  we first started creating a Bitcoin ETF.
• 16:34
  Today it's I bid is $86 billion. Now we think about it, Gigachad
• 16:39
  is near what, like 700,000 Bitcoin?
• 16:42
  Larry Fink and the ETF's have gobbled up a million.
• 16:46
  If there were a way or means to or an excuse to dump on the
• 16:51
  public, something like this might be something that they
• 16:54
  would use possibly hypothetically.
• 16:57
  I'm just thinking, I'm brainstorming out here, but
• 16:59
  listening to what Gigachad said, knowing his ties with Larry and
• 17:03
  those things. Now, does that stop Bitcoin?
• 17:05
  No, but it would set it back for a long quite some time to to
• 17:10
  recover would be absolutely insane.
• 17:13
  Plus the hornet's nest that would come from that Bitcoin
• 17:16
  would continue. But as far as the path to the
• 17:19
  the world reserve currency, that would be definitely set back
• 17:22
  like a decade or two if something like that were to
• 17:25
  happen. Now, I don't think this does,
• 17:27
  but I do believe in the slippery slope when people act against
• 17:31
  consensus when that when they dish guard the network to
• 17:34
  implement things that don't provide value to the monetary
• 17:39
  network for which it was based and built to end central banks.
• 17:44
  It is, it is, it is base level money.
• 17:46
  It is the soundest form of money we've ever discovered or created
• 17:50
  and that's not something to be with.
• 17:53
  What I do think happens from here is that inadvertently they
• 17:56
  created a new free market when it comes to these clients.
• 17:58
  There may be different things that come from that in the
• 18:01
  future, but people will have alternatives and people will
• 18:04
  have alternative mining pools. Just like ocean is being
• 18:08
  introduced and now we have datum and stratum and people able to
• 18:11
  build their own templates. There may be markets for certain
• 18:14
  transactions there and all of this could just blow all over in
• 18:18
  the end. But when you have something
• 18:20
  precious, you want to protect it.
• 18:22
  And it's not because it's so much precious for us, it's for
• 18:25
  this future that we have an opportunity yet and we are in
• 18:28
  the midst of building altogether.
• 18:30
  Like I think even people like call BTC, we may disagree on
• 18:34
  some of this, but the dude is incredible.
• 18:36
  You see what he did with bit chat and this new iMessage app.
• 18:40
  You know, people are doing great things and we can't get lost in
• 18:42
  the weeds or allow something to turn into some sort of social
• 18:47
  attack or that gets others afraid of competition entering
• 18:52
  the market or understanding that your actions may have
• 18:55
  ramifications. And that's what happens when you
• 18:58
  lose trust. It's going to be very hard to
• 19:00
  gain back. And that's where knots has come
• 19:02
  in, people not running Core 30 or there's also a Libbit coin
• 19:07
  under development. So the free market is kind of
• 19:09
  blossoming from this. And I think the the what if it
• 19:13
  was all a psyop to get more people running notes, you know,
• 19:17
  at the end of the day, what if that was brilliant?
• 19:19
  But either way, let me know what you think below.
• 19:22
  And me and Sophie of each come out with an episode on the core
• 19:26
  versus knots in that. So we'll leave that at the end.
• 19:28
  Oh, and before we wrap, grab those tickets to Mining Disrupt
• 19:32
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• 19:36
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• 19:42
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  promo code simply Bitcoin for 20% off and we'll see you there.
• 19:51
  Oh and yeah, we just found out me and Opti are speaking so hell
• 19:53
  yeah, we'll see you there. Hopefully I don't get up.
• 19:56
  Hey, hope you guys enjoyed this one.
• 19:58
  Don't forget to lag, subscribe and give us a PAMP and set those
• 20:01
  notifications for the best in Bitcoin news delivered to you.
• 20:03
  You daily. Hey, I love you guys.
• 20:05
  Keep your head on the swivel, Sophie Dante.
• 20:07
  Oceans, heaters, bangers coming your way and well shit, I'll see
• 20:12
  you guys next time. Love you.
• 20:14
  If you prefer to go down with the ship.
• 20:17
  You.