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Chamath vs Saylor: Who’s Right About Bitcoin’s Biggest Threat? | Bitcoin Simply · Simply Bitcoin

• 0:00
  One of bitcoins earliest believers has recently turned
• 0:03
  his back on Bitcoin, saying it has a fatal flaw.
• 0:06
  Tamath Paula patia has Bitcoin Twitter going crazy.
• 0:09
  Tamath Paula patia just wrote an article saying that AI is going
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  to destroy all markets and in the process brought up one of
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  the most heated debates in Bitcoin.
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  How can Bitcoin be a store value if it can be hacked on the other
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  side of the debate, Michael Saylor.
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  So who's right? One of Silicon Valley's earliest
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  Bitcoin advocates who's now distancing himself from Bitcoin,
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  where the guy whose company owns over 7 160,000 Bitcoin and is
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  about to be the largest Bitcoin holder in the world.
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  Today we take a closer look at the debate between sailor and
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  Terman and we answer the question will Bitcoin survive
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  the AI era or not? This is Dante Coco Bitcoin.
• 0:42
  Simply, let's go. With Bitcoins price being up 20%
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  over the last five years, there's lots of questions
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  swirling around about whether this is a failed project or not,
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  and even some of Bitcoins earliest advocates like Tamath
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  Palapitia are questioning Bitcoins role in the world
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  moving forward. There's a structural failing in
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  Bitcoin that I think people will.
• 1:04
  Need to come. And wrap.
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  Their heads around the structural failing is that it is
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  not. So if you think about like what
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  is the value maximizing function right now?
• 1:12
  For for a. Crypto asset to be broadly
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  adopted, it needs to have the the the features that allow a
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  central bank to adopt it. And there are two things that it
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  lacks, you know, 1 is fungibility and two is privacy.
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  And so Bitcoin fails on those two dimensions.
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  So it can never be. A structural holding.
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  Of a central bank and that simple thing will keep it in the
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  realm of ETFs and humans. And does gold satisfy those
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  conditions? Yeah.
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  Fungibility. You have no both.
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  You have no idea how much the Bank of China owns.
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  You don't know how many ounces they own.
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  You don't know how many ounces I own.
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  When there's a public Ledger that says this address has this
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  much and you can't really trade it because you know the history
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  and the provenance of that exact token.
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  It's been used to buy this. It was transacted over here.
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  It went to this wallet. That lack of fungibility and
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  privacy is a huge deterrent for broad structural adoption.
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  That's what you need to then add another 10X of market cap.
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  Tomorrow's comments have recently lit a fire on Bitcoin
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  Twitter and they went to a whole nother level yesterday when his
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  discussions on AI disrupting all markets LED into a conversation
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  about Bitcoin. He says with AI growth,
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  investing dies. He says that nation states
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  become our only stopgap with AI wiping out all jobs.
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  And on the other side of the debate, Michael Saylor, he takes
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  the opposite approach. He says that if AI compresses
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  terminal value and makes every Moat temporary, capital will
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  rotate to assets with no disruption risk.
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  Bitcoin is digital, capital scarce, neutral, impervious to
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  AI disruption. Bitcoin should be the primary
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  beneficiary of this shift. Paula Patia, clap back
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  instantly. BTC would need to be quantum
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  resistant in order for that to be true, Sailor responds.
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  Your AI thesis assumes the digital world is quantum
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  resistant. If quantum breaks cryptography,
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  it breaks AI, cloud infrastructure, banks and the
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  Internet. Not just Bitcoin.
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  And the whole point of the crux of the debate, no, a store of
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  value has to be 100% hacking resistant.
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  It's an existential feature for other industries.
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  It will be important, but less binary existential.
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  Not only is Chimath questioning whether Bitcoin is a functional
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  store of value for institutions, he's now questioning whether
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  it's a store of value for individual.
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  And Sailor doesn't buy it. If Quantum breaks Bitcoin, it
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  breaks everything in the digital world.
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  Quantum computing at some point could could break the algorithm
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  for for Bitcoin. Are are there countermeasures
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  that they could be put in? You probably understand what I'm
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  what I'm asking you. Do you worry about that?
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  You look like. You look like you slept OK.
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  You look like you slept OK last night.
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  It it's mainly marketing by people that want to sell you the
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  next Quantum yoyo token. But look, Google and Microsoft
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  aren't going to sell you a quantum computer that cracks
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  modern cryptography because it would destroy Google and
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  Microsoft and the US government and the banking system.
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  And at some point, I don't think it's this year, next year and
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  the next five years, but sometime 1020 years out.
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  If there's a hyper powerful computer that that threatens
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  modern cryptography, the answer is Bitcoin network hardware
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  upgrades. Bitcoin network software
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  upgrades, just like Microsoft, Google, the US government
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  upgrade all their messaging and banking applications.
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  The key for everybody is Bitcoin's a protocol, like the
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  English language and base 10 math.
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  When the quantum computer breaks your calculator and breaks your
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  messaging app, you're not learning base 16 math and you're
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  not going to switch to a different language.
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  You're just going to upgrade your software.
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  And Bitcoin's a monetary protocol.
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  We're just going to upgrade the software, Joe.
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  Wow. Because because there are people
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  that that you know that throw that around that that know
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  actually they know less than I do, I think.
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  But so there are countermeasures to to deal with that.
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  You know, if I wanted to hack your Bitcoin, I'd send you an
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  e-mail saying a quantum computer can hack your Bitcoin.
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  Click on the link to upgrade now and then I'd steal your Bitcoin.
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  It's 10,000 times more likely I'm phishing you than there is
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  there than there is a threat. So now I'm not worried about it.
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  Bitcoin's a protocol. The software gets upgraded all
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  every year. The hardware is being upgraded
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  continuously and it's the hardest thing in the universe to
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  hack. They will hack your banking
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  system, your account, your Microsoft account, and every
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  other asset you have. You know, much sooner because
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  they're in order of magnitude weaker.
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  Sailor made the comment that Bitcoin is exponentially
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  stronger than other networks. He's talking about the fact that
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  Bitcoin is being secured by 850 XA hash or 850 million Tera
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  hashes per second, or more power than the US Navy.
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  That's a lot of energy backing the network that updates itself
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  and its transactions every 10 minutes.
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  If you were going to hack something, would you rather hack
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  that or Cobalt server hosting all of our banking information
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  that hasn't been updated in 50 years.
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  And this has led to the faith of Sailor to lead micro strategy or
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  strategy to buy 22,237 more Bitcoin as of March 15th.
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  They're going to surpass BlackRock as early as next
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  month. As the largest holder of Bitcoin
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  in the world from an entity perspective, Sailor is pretty
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  clear his best idea is simple own digitally scarce assets in
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  cyberspace. You know, at one, there was a
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  time when everybody moved to the new world and buying the new
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  world, like Louisiana or Alaska, was a good idea.
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  What we have right now is a race to own cyberspace.
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  The future is digital. Bitcoin is digital.
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  If you're worried about the US dollar as the reserve currency,
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  what are people going to buy when they sell the dollar?
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  They're going to buy Bitcoin. And so you should go buy the
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  Bitcoin and wait, because hundreds of trillions of dollars
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  of capital from all around the world are going to flow into
• 6:54
  cyberspace to the Bitcoin network.
• 6:56
  If you believe, like Sailor believes, that Bitcoin is the
• 6:59
  best asset in cyberspace, then you don't sell it.
• 7:01
  You acquire as much of it as you can.
• 7:03
  And when you're ready to get more Fiat capital, you don't
• 7:06
  sell your Bitcoin. You borrow against it using a
• 7:09
  partner like Lenin, the leader in Bitcoin back alone since
• 7:12
  2018. The process is simple.
• 7:14
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• 7:17
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• 7:20
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• 7:24
  It's an institutionally grade back lending product that
• 7:27
  individuals can access who don't want to sell their Bitcoin.
• 7:29
  Go to learn dot LED N dot AO slash simply to get started.
• 7:32
  You can also work with our partner at the bitcoinway.com.
• 7:35
  The Bitcoin Way will schedule you with a coat, someone on a
• 7:38
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• 7:41
  Bitcoin, how to hold it sovereignly, and how to remove
• 7:44
  your wealth from banks. Go to thebitcoinway.com/simply
• 7:48
  Bitcoin to get started today. Let's go back to Chamoth.
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  It's always sad when you see one of your own fall off.
• 7:53
  Let's go back to some clips from Chamoth in 2013 talking about
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  how Bitcoin is an asset out of the control of any single
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  government, how it's an asset that benefits the people that
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  are experiencing currency debasement in regime change.
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  In financial services, you know Chris talked about it earlier,
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  but Bitcoin and things like it is the equivalent of the red
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  pill. OK, we are entering a completely
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  world of uncharted water have. You made any investments in
• 8:19
  Bitcoin? So I mean, I personally, I own
• 8:20
  Bitcoin in my hedge fund, I own Bitcoin in my fund, I own
• 8:23
  Bitcoin in my private account. It is a huge deal.
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  It's a huge, huge, huge deal because what you're talking
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  about right now is for the next three to five years, an
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  unbelievably better store value. It is gold 2.0, right?
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  The value of gold that hedges the world economy about $9
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  trillion, right? 1300 an ounce, of which only 100
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  to $150.00 is the actual production value.
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  So all the rest of it is imputed.
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  Where, Lena, you and I have decided that it's worth 1300 an
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  ounce. Well, guess what?
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  I can do the same thing with Bitcoin, except now it's I could
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  do it outside the purview of every single government.
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  It's being used everywhere where you would think it would be used
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  Russia, Iran, Iraq, Egypt, Venezuela, Argentina, everywhere
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  where you have currency pressure, everywhere where you
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  want to basically shield your assets.
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  This was him talking about Bitcoin as freedom money about.
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  People who don't believe that Bitcoin is going to RIP are
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  naive. The United States doesn't need
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  to be Bitcoin's sole buyer in order for there to be trillions
• 9:21
  of capital to flow into Bitcoin. If you don't think that this
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  thing is going to RIP when Brazil goes through devaluation,
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  when the Indian rupee continues to get crushed, when you have
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  all of this money trying to get in and out of these countries
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  where there's massive, you know, political instability or
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  monetary or financial instability, you're being naive.
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  It doesn't matter what happens in the United States.
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  It doesn't matter what happens in Japan.
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  It doesn't matter what happens in the EU.
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  It doesn't matter. It matters what happens in
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  Argentina. In Venezuela in.
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  Kenya in Brazil, in India, in Russia, in China.
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  And when you look at where all the activity is, it's in all of
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  those markets this will be. Born.
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  Out of a people's desire to have unfettered access to capital.
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  People want unfettered access to capital.
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  That is the quote of this clip. This far outweighs his
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  detractors of saying Bitcoin is infungible, which it is.
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  You can always verify your transactions in your Bitcoin if
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  you show the private key attached to the public key on
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  the blockchain. He's also saying that central
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  banks won't buy it because it's private, which is ironic because
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  the actual creator of Bitcoin in itself to Toshi Nakamoto is
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  someone who we don't even know who they are.
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  This network allows for people, central banks, corporations,
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  individuals to be anonymous. The Bitcoin doesn't need to be
• 10:36
  identified to any single person or entity in order for it to be
• 10:39
  valued. The thing that makes Bitcoin so
• 10:40
  brilliant is its simplicity. Listen to Jamath talking about
• 10:44
  the Bitcoin white paper being one of the most beautiful things
• 10:46
  ever to be written. Where I thought this is one of
• 10:49
  the most elegantly written pieces of non-technical pros.
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  Do you know what I'm trying to say?
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  Like it's not something that is like dense in an archive that is
• 10:59
  just meant for PhDs. You could literally give it to
• 11:02
  your sister, to your brother, to somebody non-technical and they
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  would understand it. Yeah.
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  Yeah, and it's only 9 pages. And exactly, you know what an
• 11:10
  enormous amount of intellectual skill it takes to do that?
• 11:13
  Oh yeah, yeah. Yeah, it's much harder to write
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  it very short. Much harder and elegantly and
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  simply. Yeah, yeah.
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  Anybody else trying to rewrite that thing?
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  You'd be 90 pages. This is the value of Bitcoin.
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  Be scared away by ideas and fears about Quantum being able
• 11:27
  to break and hack Bitcoin. This is just new Silicon Valley
• 11:30
  mumbo jumbo that isn't real and isn't reality.
• 11:32
  Quantum will go after many other things before it came after
• 11:35
  Bitcoin and Bitcoin is simply going to upgrade like every
• 11:39
  other protocol that has a potential attack vector of
• 11:41
  Quantum. Don't be fooled out of selling
• 11:43
  your stack by these recent comments by Shamat, who I still
• 11:46
  believe is 1 of Bitcoins best and biggest advocates on the
• 11:49
  Silicon Valley front. But what do you think?
• 11:52
  Who's on the right side of this debate, Sailor or Taman?
• 11:54
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• 11:57
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• 12:07
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• 12:19
  Simply happy stacking.