Latest / The Paul Barron Crypto Show / Nations Buying Bitcoin?💰Geopolitical Crypto Forecast w/ Diana Choyleva

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Nations Buying Bitcoin?💰Geopolitical Crypto Forecast w/ Diana Choyleva · The Paul Barron Crypto Show

• 0:05
  Speaker 1: My name is Paul Barrel. Wellcome back in the tech path.
• 0:08
  Speaker 2: It's going to be a good one today because we
• 0:09
  Speaker 2: will talk about nation states and how that might be
• 0:13
  Speaker 2: an influence on how bitcoin adoption could start to take
• 0:16
  Speaker 2: place obviously digital assets as a whole. So we're going
• 0:19
  Speaker 2: to bring on a special guest in a minute to
• 0:20
  Speaker 2: kind of break that down. I do want to thank
• 0:22
  Speaker 2: our sponsor today, and that is I Trust Capital.
• 0:24
  Speaker 1: If you guys are looking to go into a CRYPTOIRA
• 0:27
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• 0:30
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• 0:33
  Speaker 2: a IRA, So check it out. Just go to iruscapital
• 0:36
  Speaker 2: dot com. You can use our link down below. It's
• 0:38
  Speaker 2: going to give you one hundred dollars in funding to
• 0:41
  Speaker 2: get started. Joining me today is Diana Choleva, who is
• 0:46
  Speaker 2: the chief economist over and in Noto Economics. Great to
• 0:49
  Speaker 2: have you on, Great to be here, Hi, Diana. So
• 0:54
  Speaker 2: I want to jump into a couple of points real quickly.
• 0:57
  Speaker 2: I want to go over to your Twitter account, and
• 1:00
  Speaker 2: you had a nice little tweet stream here around the
• 1:05
  Speaker 2: potential between the US and China and what that might
• 1:07
  Speaker 2: look like in terms of the political tensions, but also
• 1:12
  Speaker 2: from an economic standpoint. Your first tweet there called president
• 1:16
  Speaker 2: basically to elect Trump, I I mean to congratulate Trump
• 1:19
  Speaker 2: and basically said, hey, we're still looking at this as
• 1:22
  Speaker 2: a competitive statement. Obviously Trump has been very pro tariffs
• 1:26
  Speaker 2: and what that might look like going forward. When you
• 1:28
  Speaker 2: look at the US Chinese relations you look at the
• 1:32
  Speaker 2: global economic condition right now of what we're seeing both
• 1:35
  Speaker 2: in China obviously here in the US with our current inflation, interest.
• 1:40
  Speaker 1: Rates, etc. How would you grade this relationship going forward.
• 1:47
  Speaker 3: Look, the relationship between China and the US is only
• 1:52
  Speaker 3: likely to deteriorate further on the Trump We are in
• 1:56
  Speaker 3: the era of the Great Decapeling, and this decoupling is
• 2:01
  Speaker 3: set to accelerate when Trump comes to power. And this
• 2:07
  Speaker 3: is just not only entirely related to the tariffs that
• 2:12
  Speaker 3: Trump intends to impose, and in our view, he will
• 2:16
  Speaker 3: start by imposing them and afterwards try and reach a
• 2:20
  Speaker 3: deal of some sort. But the problem is that there
• 2:23
  Speaker 3: really isn't anything that China could offer the US that
• 2:27
  Speaker 3: could lead to some sort of even the tent, let
• 2:30
  Speaker 3: alone a lasting improvement in the relationship between what is
• 2:35
  Speaker 3: essentially the existing superpower and the aspiring one fighting for
• 2:41
  Speaker 3: who's going to be the global hegemon of the future.
• 2:46
  Speaker 1: Yeah, okay, so a couple of points there.
• 2:48
  Speaker 2: Obviously, the relationship between the US and China has become
• 2:53
  Speaker 2: a little bit more tense, mainly around the lop sided
• 2:56
  Speaker 2: trade deficits that go on between the US and China.
• 2:59
  Speaker 2: Also some of the companies they would like to operate
• 3:02
  Speaker 2: in China from the United States who are not necessarily allowed. Obviously,
• 3:06
  Speaker 2: here in the United.
• 3:07
  Speaker 1: States it's a little different.
• 3:08
  Speaker 2: We're in the midst of a TikTok ban that's going
• 3:11
  Speaker 2: to be happening. I guess in about sixty days or so,
• 3:13
  Speaker 2: whether or not that's going to happen. Do you feel
• 3:16
  Speaker 2: like Chaney could come back in and just look at
• 3:19
  Speaker 2: the opportunity that sets in front of them and maybe
• 3:22
  Speaker 2: loosen up the trade regulations between the two countries to
• 3:26
  Speaker 2: maybe allow that a deal to be done.
• 3:31
  Speaker 3: Fundamentally, this is a clash of different ideologies and a
• 3:36
  Speaker 3: clash between two superpowers. Dispense started around trade when Trump
• 3:43
  Speaker 3: first came to power, but it was China that first
• 3:47
  Speaker 3: started decoupling, and it focus was on rising up the
• 3:52
  Speaker 3: value added chain and ensuring its self sufficiency when it
• 3:56
  Speaker 3: came to critical technologies, in particular the technologies of the future.
• 4:00
  Speaker 4: So none of these has changed. And yes, you know,
• 4:04
  Speaker 4: Trump has sort of waived the carrot.
• 4:07
  Speaker 3: Well, I might not impose tariffs if Chinese production relocates
• 4:13
  Speaker 3: to the US, and in our conversations with some of
• 4:16
  Speaker 3: the Chinese companies.
• 4:18
  Speaker 4: They are preparing to make such investments.
• 4:21
  Speaker 3: But will you know, the playbook will be basically China's
• 4:25
  Speaker 3: playbook enforced.
• 4:26
  Speaker 4: On China this time around.
• 4:28
  Speaker 3: Will China itself now be willing to share its critical technology,
• 4:35
  Speaker 3: in particular when it comes to the electric vehicle sectors,
• 4:38
  Speaker 3: so all the technology areas where they're ahead of the game.
• 4:41
  Speaker 3: So there is absolutely widespread bipartisan agreement in the US
• 4:48
  Speaker 3: to be tough on China, and it moved well beyond trade,
• 4:54
  Speaker 3: which was in a way the symptom really rather than
• 4:57
  Speaker 3: the cause of all this to this technical logical constrainment
• 5:01
  Speaker 3: of China, and under Trump will move to also looking
• 5:05
  Speaker 3: at investment flows in a much more robust manner.
• 5:11
  Speaker 4: I would you know, joke off on that.
• 5:13
  Speaker 3: You know, in our conversations with our US fund manager clients,
• 5:17
  Speaker 3: so we hare in a you know, if they invest
• 5:19
  Speaker 3: in China and they lose money, they're fools. But if
• 5:22
  Speaker 3: they invest in China and make money, they're actually on patriotic.
• 5:27
  Speaker 1: Yeah.
• 5:28
  Speaker 2: Well, I think I think a lot of this right
• 5:30
  Speaker 2: now has kind of got back into a scenario that
• 5:33
  Speaker 2: is playing out maybe around the globe. We've already started
• 5:36
  Speaker 2: to see other countries starting to somewhat nationalize try to
• 5:39
  Speaker 2: bring more jobs back. Trump of course is talking to
• 5:42
  Speaker 2: a lot of those types in general. But at the
• 5:45
  Speaker 2: same time, I think the scenario that's going to play
• 5:47
  Speaker 2: out around tariffs is going to be very interesting to watch.
• 5:50
  Speaker 2: I want to go to a clip real quick. This
• 5:52
  Speaker 2: is Gita over from Bloomberg. She's talking about the IMF
• 5:55
  Speaker 2: and a little bit of a shift that's occurring there,
• 5:58
  Speaker 2: and I wanted to get your opinion on this.
• 6:00
  Speaker 5: Take a look this question about regime change, and that
• 6:03
  Speaker 5: some people are saying that we're entering a new paradigm
• 6:06
  Speaker 5: where there is a greater acceptance of protectionism, of trade tensions,
• 6:11
  Speaker 5: of this question about who's friends with who and who's
• 6:14
  Speaker 5: going to scratch who's back, but not necessarily the same
• 6:16
  Speaker 5: sort of free trade era. Do you think that this
• 6:20
  Speaker 5: is the beginning the middle or the end of that evolution.
• 6:24
  Speaker 6: What we certainly have changed in the sense that there
• 6:27
  Speaker 6: was a time when countries were hyper focused on efficiency
• 6:31
  Speaker 6: and when they were deciding who to trade with the
• 6:34
  Speaker 6: only question was which was the cheapest source to buy from.
• 6:38
  Speaker 6: Right now they're stepping back and saying, well, we need
• 6:40
  Speaker 6: to make sure our supply chains are secure, that we
• 6:43
  Speaker 6: are not exposing ourselves to big risks, that they are
• 6:46
  Speaker 6: not big national security concerns. That changed is already happening,
• 6:51
  Speaker 6: and you see that in the data, but it's still
• 6:54
  Speaker 6: of a small magnitude. The question is how much further
• 6:58
  Speaker 6: down the path do we go, and that is.
• 7:00
  Speaker 1: Uncertain, so a small magnitude there.
• 7:04
  Speaker 2: You look at at the scenario that could be playing
• 7:06
  Speaker 2: out with the IMF and really how this could be
• 7:09
  Speaker 2: reshaping the format of global currency. The dollar obviously as
• 7:13
  Speaker 2: the world's global reserve right now, but this could start
• 7:16
  Speaker 2: to shift with things like you know what's happening with.
• 7:19
  Speaker 1: Bricks et cetera.
• 7:20
  Speaker 2: With that being stated, you know, she's saying it's still
• 7:24
  Speaker 2: very early. If you were to put a timeline on
• 7:26
  Speaker 2: this where we do see some global shifts really occur,
• 7:29
  Speaker 2: and if China does become the new superpower.
• 7:32
  Speaker 1: What would be your time frame right now?
• 7:36
  Speaker 3: Well, look, this reminded me when I was participating at
• 7:40
  Speaker 3: Bloomberg's New Economy Forum, the Noverall one in Singapore in
• 7:44
  Speaker 3: twenty eighteen, and I was speaking at their big debate.
• 7:51
  Speaker 3: They had a session on has globalization gone too far?
• 7:55
  Speaker 3: And we had a pro and con camp, and I
• 7:58
  Speaker 3: was in the pro camp argue that globalization has gone
• 8:02
  Speaker 3: too far for a variety of reasons, and we are
• 8:05
  Speaker 3: set on this sort of deglobalization, great decoupling path which
• 8:09
  Speaker 3: will turn out to be the most fundamental driving force
• 8:14
  Speaker 3: impacting absolutely everything. So we've been ahead of the game
• 8:17
  Speaker 3: on this, forecasting this, and everything so far has unfolded
• 8:22
  Speaker 3: exactly as expected. Sadly in a way, obviously, because if
• 8:28
  Speaker 3: Martians existed, they would be sitting on Mars looking at
• 8:31
  Speaker 3: Earth and saying, why the hell are humans arguing when
• 8:34
  Speaker 3: they've never had it as good as in the last
• 8:37
  Speaker 3: thirty years.
• 8:38
  Speaker 4: But here we are.
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  Speaker 3: And I tend to describe this decoupling really as an
• 8:43
  Speaker 3: iceberg that by the time it hits you in the
• 8:46
  Speaker 3: sense of the data showing it in its full scale,
• 8:50
  Speaker 3: it will be too late.
• 8:52
  Speaker 4: A lot of the corporations. No one wants to take
• 8:55
  Speaker 4: a side.
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  Speaker 3: The countries don't want to take a side, the multinationals
• 8:59
  Speaker 3: they want, don't want to take a side, and everyone
• 9:02
  Speaker 3: tries to have their cake and eat it. But simultaneously,
• 9:05
  Speaker 3: certainly in particular as well in our conversations, everyone is
• 9:09
  Speaker 3: now preparing and in particular pose the invasion of Ukraine.
• 9:15
  Speaker 3: Before that it was more about Paris China's cost with
• 9:18
  Speaker 3: the you know, everyone was looking still under the prism
• 9:21
  Speaker 3: of cost and benefit, and now it's the geopolitical considerations
• 9:29
  Speaker 3: and the realization that you have to take on the
• 9:31
  Speaker 3: higher costs. That's inevitable that we are moving to a
• 9:35
  Speaker 3: much less productive and efficient world, and that's what we've
• 9:40
  Speaker 3: chosen to move across the board.
• 9:44
  Speaker 2: So with that being the case, and I think to
• 9:46
  Speaker 2: your point, you look at how bricks has risen so
• 9:50
  Speaker 2: quickly to I would think a world stature at least
• 9:54
  Speaker 2: what we're seeing now with a number of countries starting
• 9:56
  Speaker 2: to join bricks as well.
• 9:57
  Speaker 1: Vladimir Puttin shares his brick bricks plan.
• 10:01
  Speaker 2: Of course, obviously, with Trump taking the office, there's a
• 10:04
  Speaker 2: lot of political and policy shifts that are going to
• 10:07
  Speaker 2: be occurring.
• 10:07
  Speaker 1: One of the things that has been.
• 10:09
  Speaker 2: Talked about, and we've talked about this quite a bit,
• 10:11
  Speaker 2: is the bricks dollar strategy.
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  Speaker 1: Some of it is gold.
• 10:13
  Speaker 2: Most likely we'll see a lot more bitcoin being utilized
• 10:16
  Speaker 2: by nation states. We've already started to see a lot
• 10:19
  Speaker 2: of accumulation in that area. Do you think that with
• 10:22
  Speaker 2: bricks in a position right now thirty six countries greater
• 10:26
  Speaker 2: GDP than the G seven, where does that go and
• 10:29
  Speaker 2: how does that potentially destabilize things like the dollar itself.
• 10:35
  Speaker 3: We are in a period where the role of the
• 10:37
  Speaker 3: dollar is payment currency first and foremost is in decline,
• 10:44
  Speaker 3: and it's driven by the US actions as well in
• 10:48
  Speaker 3: terms of the severe financial sanctions that it imposed on Russia,
• 10:53
  Speaker 3: and that really sort of wrang alarm bells across the
• 10:59
  Speaker 3: global south. More broadly speaking, now, bricks is an interesting
• 11:04
  Speaker 3: grouping that doesn't, in our view, has the potential to
• 11:09
  Speaker 3: create a kind of a certainly not a bricks currency
• 11:14
  Speaker 3: in any shape or form, but every single country in
• 11:18
  Speaker 3: the bricks grouping is looking to ways where they could
• 11:22
  Speaker 3: use their own currency in their trade and rely a
• 11:27
  Speaker 3: lot less on the dollar based global financial system. Now
• 11:31
  Speaker 3: as it happens, the global based US dollar based global
• 11:35
  Speaker 3: payment system.
• 11:36
  Speaker 4: Cross border system.
• 11:37
  Speaker 3: Is extremely inefficient, and the developments with digital currencies, in
• 11:44
  Speaker 3: particular central bank digital currencies and their use for cross
• 11:49
  Speaker 3: border transactions offers incredible efficiency gains and cost gains. And
• 11:57
  Speaker 3: there's various pilots across the world that have progressed to
• 12:01
  Speaker 3: a minimum viable stage where this is really on the
• 12:05
  Speaker 3: cusp of being utilized. And it was interesting that after
• 12:09
  Speaker 3: the Brick meeting, the most advanced of these is the
• 12:12
  Speaker 3: so called m Bridge, which is between China, Hong Kong, Thailand,
• 12:20
  Speaker 3: the United Arab Emirates and now Saudi.
• 12:22
  Speaker 4: Arabian and the BA.
• 12:24
  Speaker 3: As the Bricks meeting and the comments that put In made,
• 12:28
  Speaker 3: has now said that they're sort of withdrawing and that
• 12:31
  Speaker 3: they're letting the pilot is ready.
• 12:33
  Speaker 4: They don't need to get involved anymore. It's going forward.
• 12:36
  Speaker 3: But bear in mind that when you talk about crypto
• 12:40
  Speaker 3: verse essential bank digital currencies, there is a big difference
• 12:44
  Speaker 3: which is certainly very much on the mind of the
• 12:47
  Speaker 3: authoritarian regimes. China in particular has band crypto has absolutely
• 12:53
  Speaker 3: no intention of using or or allowing the centralized digital
• 13:02
  Speaker 3: assets to be part of the system, and also China
• 13:07
  Speaker 3: doesn't really, you know, in China's interest is to promote
• 13:10
  Speaker 3: the R and B and to trade as much as
• 13:13
  Speaker 3: possible in its own currency rather than sort of come
• 13:18
  Speaker 3: into a block and have a particular other currency being created.
• 13:22
  Speaker 3: And so then if all those big countries need to
• 13:27
  Speaker 3: or want to transact between themselves in their own currency
• 13:31
  Speaker 3: rather than using the dollar as an intermediately, they'll have
• 13:34
  Speaker 3: a huge incentive in terms of even cost savings to
• 13:39
  Speaker 3: do these transactions in the kind of global payment system
• 13:44
  Speaker 3: of the twenty first century. And the US has been
• 13:46
  Speaker 3: behind the curve in creating a similar structure, and actually
• 13:52
  Speaker 3: under Trunk, who has said that, you know, he's against
• 13:55
  Speaker 3: central band digital currencies, that side of the US effort
• 13:59
  Speaker 3: is likely to diminished. So it's a very interesting dihaotomy
• 14:02
  Speaker 3: between how the authoritarian regimes will use digital.
• 14:06
  Speaker 4: Currencies, how the three.
• 14:09
  Speaker 3: Liberal democracies may or may not use central bying digital currencies,
• 14:14
  Speaker 3: and where crypto fit you know, fits into all this, right,
• 14:19
  Speaker 3: and you know, it's not inconceivable that it ends up
• 14:23
  Speaker 3: being really a third.
• 14:26
  Speaker 4: Poll in this interaction.
• 14:29
  Speaker 2: Well, I think that seems to be the direction that
• 14:32
  Speaker 2: bricks has taken, along with other countries within it, they
• 14:35
  Speaker 2: announced their proposal to create a global crypto investment platform
• 14:39
  Speaker 2: that of course also involves gigiping, talking about with China
• 14:42
  Speaker 2: as well as Russia, and another thing within it, they've
• 14:46
  Speaker 2: got bricks Pay. We've done a full video on bricks
• 14:48
  Speaker 2: paying what that might look like. You mentioned a little
• 14:50
  Speaker 2: bit about Mbridge, the involvement with Ripple on being able
• 14:53
  Speaker 2: to do cross border settlements back to the point of
• 14:56
  Speaker 2: where crypto could be involved.
• 14:57
  Speaker 1: I think that in.
• 14:58
  Speaker 2: Conjunction with what they're trying to do right now, which
• 15:02
  Speaker 2: is really getting into a lot of these cross border
• 15:05
  Speaker 2: crypto transactions. Now, whether or not we see bitcoin continuing
• 15:09
  Speaker 2: to flow into nation states, and we may see that
• 15:11
  Speaker 2: now if you look at the number of countries that
• 15:15
  Speaker 2: currently hold this asset, could we see this maybe start
• 15:18
  Speaker 2: to rise to your point as a third poll to
• 15:21
  Speaker 2: be looking at in the global infrastructure in terms of
• 15:25
  Speaker 2: fundings in general, do you think that, with all of
• 15:28
  Speaker 2: that being said, that the potential for bricks to kind
• 15:32
  Speaker 2: of lead that way or do you think it might
• 15:35
  Speaker 2: come from other countries around the world starting to look
• 15:38
  Speaker 2: at what the United States is doing around a bitcoin
• 15:41
  Speaker 2: strategic reserve.
• 15:44
  Speaker 3: So well, we'll see how that strategy shapes under Trump,
• 15:47
  Speaker 3: But I think it's too early to speculate exactly where
• 15:50
  Speaker 3: Trump will go with this, and he certainly has also
• 15:54
  Speaker 3: stated that he will penalize other countries that try and
• 15:57
  Speaker 3: move away from the US dollar again tariffs.
• 16:00
  Speaker 4: Will see how that moves. But I think it's important to.
• 16:04
  Speaker 3: Realize that, and you know, a lot of the reporting
• 16:07
  Speaker 3: tends to conflate a lot of these issues into one
• 16:11
  Speaker 3: and the same thing.
• 16:13
  Speaker 4: You know, a.
• 16:14
  Speaker 3: Crypture, first of all, is really looked at much more
• 16:18
  Speaker 3: as an asset rather than as.
• 16:20
  Speaker 4: A means of payment, right, And when it comes to
• 16:23
  Speaker 4: means of.
• 16:24
  Speaker 3: Payment again, central bank digital currencies and cross border payments
• 16:28
  Speaker 3: based on these on using central bank digital currencies will
• 16:31
  Speaker 3: offer tremendous cost and efficiency gains. But the system mbridge
• 16:39
  Speaker 3: is and certainly from the Chinese point of view in
• 16:42
  Speaker 3: terms of how their digital currency is set up, is
• 16:45
  Speaker 3: very much a centralized not a decentralized system, and none
• 16:49
  Speaker 3: of the authority regimes really have an incentive to not
• 16:56
  Speaker 3: take the same position. If you see what I mean
• 16:59
  Speaker 3: to release control, that's that's not in their nature. So
• 17:03
  Speaker 3: any talk about crypto is more in the in the
• 17:06
  Speaker 3: sense of potentially as.
• 17:08
  Speaker 4: An alternative asset class.
• 17:11
  Speaker 3: And when it comes to means of payment, we are
• 17:14
  Speaker 3: using distributed ledger technologies to improve you know what is
• 17:20
  Speaker 3: really an antiquated system globally that takes you know, days
• 17:24
  Speaker 3: to money and move money across and actually were a
• 17:27
  Speaker 3: lot of the small economies being disadvantage because post the
• 17:31
  Speaker 3: global financial crisis, the US really kind of cut its
• 17:34
  Speaker 3: global correspondent banking network, which is an integral part of
• 17:39
  Speaker 3: that global payment system.
• 17:41
  Speaker 2: Yeah, I think I look at it, you know, in
• 17:43
  Speaker 2: the sense of where stable coins could really flow into this,
• 17:46
  Speaker 2: whether you look at Tether, you look at what Ripple
• 17:48
  Speaker 2: is doing with their stable coin. Obviously circle here in
• 17:51
  Speaker 2: the United States. Now bitcoin is now past Saudi Aramco,
• 17:56
  Speaker 2: and it's very early in terms of the overall adoption curve.
• 18:00
  Speaker 1: I was also.
• 18:00
  Speaker 2: Looking at the amount of bitcoin currently being held by countries.
• 18:04
  Speaker 2: Not a lot of major countries on here other than
• 18:06
  Speaker 2: the US and China and the United Kingdom that are
• 18:09
  Speaker 2: holding a fairly significant amount. But it's the rising countries
• 18:12
  Speaker 2: that could be starting to play out at least in
• 18:15
  Speaker 2: this curve between this challenge between the US and China.
• 18:19
  Speaker 2: So I think that's something that is probably going to
• 18:21
  Speaker 2: play into this. But stable coins and everything that we'll see,
• 18:25
  Speaker 2: including a lot of the legislation that's come in the
• 18:27
  Speaker 2: EU around Mica, do you think that shifts any of
• 18:30
  Speaker 2: the focus over to stable coins, especially with the number
• 18:34
  Speaker 2: of them that are available, because every country could develop
• 18:37
  Speaker 2: their own stable coin, what about going that route instead
• 18:40
  Speaker 2: of a CBDC.
• 18:43
  Speaker 4: I think that.
• 18:44
  Speaker 3: Is really much more to the preference of the free,
• 18:47
  Speaker 3: liberal democratic world. So I see that any In fact,
• 18:52
  Speaker 3: I would argue that the response. You know, I grew
• 18:56
  Speaker 3: up in communism, in communist Bulgaria. I will in my
• 19:01
  Speaker 3: you know, teenage years fourteen when the Berlin Wall fell,
• 19:04
  Speaker 3: and so I remember what it was like, and you know,
• 19:09
  Speaker 3: I certainly don't want to personally live.
• 19:12
  Speaker 4: In communism ever. Again.
• 19:13
  Speaker 3: I mean, if others want to, you know that that's
• 19:16
  Speaker 3: their choice, and you know that's fine.
• 19:18
  Speaker 4: But in you know, it's been.
• 19:20
  Speaker 3: Very frustrating that the sort of free liberal demographic world
• 19:24
  Speaker 3: is responding to the Chinese challenge by kind of swinging
• 19:29
  Speaker 3: in the direction of employing similar measures and tactics, whether
• 19:35
  Speaker 3: it's industrial policy and liberal or deliberalizing and turning more
• 19:42
  Speaker 3: into being like those regimes in order to be able
• 19:45
  Speaker 3: to compete, and in my view, it will be better
• 19:50
  Speaker 3: that we double down on our values in order to
• 19:55
  Speaker 3: compete with the authoritarian regimes in this kind of loosely
• 20:01
  Speaker 3: banded grouping. And in that sense, this is where I
• 20:06
  Speaker 3: see the role of stable coins.
• 20:09
  Speaker 2: Yeah, I definitely would say that that's what we're seeing
• 20:12
  Speaker 2: in terms of a lot of the countries, both leaders
• 20:16
  Speaker 2: the direction we've seen obviously with digital assets, but also
• 20:18
  Speaker 2: the advancement of how, you know, how speedy these transactions
• 20:22
  Speaker 2: can go, and what that means for a lot of
• 20:25
  Speaker 2: these countries that are emerging. I want to play a
• 20:27
  Speaker 2: clip here from Pampeliano where he's talking about the current
• 20:32
  Speaker 2: case of bitcoin and how this affects the rest of
• 20:35
  Speaker 2: the world.
• 20:35
  Speaker 1: Take a look.
• 20:36
  Speaker 7: He holds bitcoin. Heke also wants the United States to
• 20:38
  Speaker 7: hold bitcoin, and so he's going to put together the
• 20:40
  Speaker 7: strategic reserve of bitcoin, whould be incredibly important. I think
• 20:43
  Speaker 7: it'll be a flag that he plants in the ground
• 20:44
  Speaker 7: and says, hey, I promise I was going to do this,
• 20:46
  Speaker 7: and I did in the first hundred Right.
• 20:47
  Speaker 1: Is that a big deal?
• 20:48
  Speaker 7: You have it strategic reserve, you're building it, and by
• 20:50
  Speaker 7: having to buy bitcoin to have in it, right, so
• 20:53
  Speaker 7: it furthers the demand. Well, central banks around the world
• 20:55
  Speaker 7: they hold gold, many other assets, and so anytime that
• 20:57
  Speaker 7: you can go and get the best store value asset
• 20:59
  Speaker 7: and bitcoin, which has been for the last fifteen years,
• 21:01
  Speaker 7: I think that's.
• 21:02
  Speaker 1: A good thing.
• 21:02
  Speaker 7: The other thing that's happening is Bitcoin's price is increasing,
• 21:05
  Speaker 7: and everyone says, hey, it's Wall Street Foma, which definitely
• 21:07
  Speaker 7: is playing into it. But I think that's a coin. Yeah,
• 21:09
  Speaker 7: but I think that bitcoin is also a global alarm system.
• 21:11
  Speaker 7: And what Bitcoin is telling us is I'm calling the
• 21:14
  Speaker 7: bluff of the politicians. If we go and look over
• 21:16
  Speaker 7: the last three months, the politicians have added eight hundred
• 21:19
  Speaker 7: and fifty billion dollars to the national debt, and so
• 21:21
  Speaker 7: at that same point, over that three month period, Bitcoin
• 21:23
  Speaker 7: is up over forty percent. And so right now we
• 21:26
  Speaker 7: have a race between the national debt and bitcoin. Who
• 21:28
  Speaker 7: is going to reach the sky faster.
• 21:32
  Speaker 2: So with that being said, you look at obviously the
• 21:35
  Speaker 2: situation we're faced with here in the United States, very
• 21:38
  Speaker 2: high deficit. Our interest rate alone is getting to the
• 21:41
  Speaker 2: point where it's not manageable. The likelihood of an alternative system,
• 21:45
  Speaker 2: whether it's a strategic bitcoin reserve or other scenario that
• 21:48
  Speaker 2: plays into this, and then a global adoption curve. You know,
• 21:52
  Speaker 2: when you look at all of that coming together at
• 21:54
  Speaker 2: the same time, would that put you in a position
• 21:57
  Speaker 2: where you would say, okay, maybe now if you look
• 22:00
  Speaker 2: at the future, this could be something that could start
• 22:04
  Speaker 2: to shift the global economics power structure. Even if you
• 22:08
  Speaker 2: pushed China out of a digital currency and China was
• 22:11
  Speaker 2: forced to deal with another global reserve currency starting to
• 22:15
  Speaker 2: take hold instead of the yuan, it could be something
• 22:18
  Speaker 2: like a bitcoin or a stable coin.
• 22:21
  Speaker 1: Your thoughts, well.
• 22:24
  Speaker 3: You know, I will make it even broader for you
• 22:26
  Speaker 3: because you know, the question sort of big thinking, forward
• 22:29
  Speaker 3: looking question that I'm asking myself is you know, in particular,
• 22:34
  Speaker 3: also when I take the various surveys around the Ukraine
• 22:39
  Speaker 3: War that actually individuals trusted their company more than they
• 22:45
  Speaker 3: trusted the national governments in how you know, in sort
• 22:50
  Speaker 3: of you know their.
• 22:53
  Speaker 4: Behavior and what is right and what is wrong.
• 22:56
  Speaker 7: So we have this.
• 23:00
  Speaker 3: Viperation between and lack of trust of the individual in
• 23:05
  Speaker 3: the free, liberal against democratic world with respect to their
• 23:10
  Speaker 3: leaders and how.
• 23:11
  Speaker 4: Well they're doing their job.
• 23:13
  Speaker 3: And then you have this payment system that is entirely,
• 23:18
  Speaker 3: you know, and it's as I keep saying, it's you know,
• 23:20
  Speaker 3: when it comes to bitcoin, is really we're talking about
• 23:23
  Speaker 3: assets here, not means of payment. Of course, the stable
• 23:26
  Speaker 3: coin is means of payment as well, and it's an
• 23:30
  Speaker 3: alternative system that also ban these you know, bands.
• 23:35
  Speaker 4: Together different nationalities.
• 23:37
  Speaker 3: It's a very supernational kind of movement that on the
• 23:41
  Speaker 3: US side, it very much is in response to deteriorated
• 23:46
  Speaker 3: faith in the monetary prudent monetary management of the US
• 23:50
  Speaker 3: economy that's been you know, behind the perennially behind the
• 23:56
  Speaker 3: increase in bitcoin over time, and those wordes have gotten.
• 24:00
  Speaker 4: Worse rather than than better or rather than less.
• 24:03
  Speaker 3: But it you know, the question I wonder is is
• 24:06
  Speaker 3: it going to be the world bifurcating into two systems,
• 24:11
  Speaker 3: a US led and a China led one, or while
• 24:16
  Speaker 3: those are having their own problems and maybe not managing
• 24:19
  Speaker 3: to bring everyone in their all of their populations together,
• 24:24
  Speaker 3: especially in the free world where the populations have more
• 24:27
  Speaker 3: freedom to express their you know, desires properly, then we
• 24:35
  Speaker 3: create something that is not attached to a nation.
• 24:41
  Speaker 2: Yeah, well, I think that's the point. You know, to
• 24:44
  Speaker 2: your point, you hit on a good a couple of
• 24:45
  Speaker 2: good topics there. The key thing is the mistrust that
• 24:48
  Speaker 2: we're seeing now here in the US, but really around
• 24:50
  Speaker 2: the world. I mean, a lot of emerging countries have
• 24:52
  Speaker 2: already developed with this. We've seen in Venezuela obviously, We've
• 24:55
  Speaker 2: seen many countries that have already dealt with this.
• 24:57
  Speaker 1: Argentina is now going through this.
• 24:59
  Speaker 2: You're going to see this most likely in the European nations,
• 25:02
  Speaker 2: all of which are kind of aligning to this one
• 25:05
  Speaker 2: national i should say, supernational approach that's being happening been happening,
• 25:09
  Speaker 2: and maybe that's what China was fearful of when they
• 25:12
  Speaker 2: banned crypto mining. You know, back in twenty twenty one,
• 25:15
  Speaker 2: we saw them detach away because it was becoming a
• 25:18
  Speaker 2: little bit too powerful for them to control. China is
• 25:21
  Speaker 2: still one of the largest countries in terms of amount
• 25:24
  Speaker 2: of trades originating out into Crypto is still happening within
• 25:28
  Speaker 2: the country of China, so it's interesting to see that
• 25:31
  Speaker 2: even the people of China are continuing to move outside
• 25:35
  Speaker 2: the lines as well. So it's going to be one
• 25:37
  Speaker 2: to watch for sure.
• 25:39
  Speaker 1: Dina, it's been great having you on today. Thank you
• 25:41
  Speaker 1: so much for coming in. We really appreciate it. My
• 25:44
  Speaker 1: pleasure excellent, are you guys?
• 25:47
  Speaker 2: If you're not tuned in over on the YouTube channel,
• 25:49
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• 25:53
  Speaker 2: Follow me out there on x at Paul Baron. We'll
• 25:56
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• 25:56
  Speaker 1: Right here on tech Path, dim think different to