Michael Saylor & Firas Zahabi talking Bitcoin and Economics -AMA 94

hello everybody welcome to the tristar

gym channel today i am super happy to

have as a guest mr michael saylor

long-standing ceo of microstrategies and

in my opinion

the top influencer in the bitcoin

bitcoin world today michael welcome to

the channel how are you

thanks for having me i'm a big fan

are you do you watch mma

i saw you on joe rogan

we got to get you anjou rogan soon i

gotta have the fans

i want everybody i want everybody to

bombard uh rogan and i want you on the

broken channel talk about bitcoin

explaining to the world why bitcoin is

on fire

michael remind me

remind me real quick

how much have you invested in bitcoin so

far was it 3 million 3.3 million what

was the number again

i mean all told my company microstrategy

has invested 3 billion 160 million

3 billion 3.1 billion yeah i put another

175 million of my own money so i'm 3.3

something

3.35 i can't remember i love it it's a

lot of money a true bitcoin whale out

here in the open it's amazing

so tell us michael for the guys there's

a lot of people listening they don't

know much about bitcoin i'm a die hard

bitcoiner i love bitcoin

uh but for those who never heard bit

about bitcoin why are you choosing to

put your money in bitcoin and not in the

bank

i'll start with first principles

you know what is inflation

inflation is uh is when the government

sucks the energy out of the currency

so if we go to if we go to uh

an analogy that an athlete would

understand you run a dojo

and the government sends you a note

saying i need all of your fighters to

give me a pint of blood

so everybody donates a pint of blood

and to get ready for this i google this

and i determine i found out that google

thinks it takes four to eight weeks to

replace your

red blood cells and you got 10 pints of

blood in your body

so if you if you get bled 10 of your

blood then i guess you're not going to

be the ideal top athlete for four to

eight weeks

that's right and so maybe you know if

you had a big competition you would not

want to do that within two months of the

competition but you're probably trained

a little bit weaker too

so

that's about 10 inflation

now what happened if you got a memo from

the government they said we need a pint

of blood from every fighter every

quarter

every 12 weeks

now

now you've got to like 25 30 inflation

and now you're never really on

now what happens if the government sends

you a note saying well we're going to

need a plane of blood every month

okay so so inflation is is um

current currency collapse

and currency

is to the economy

what blood is to the body

and uh and value or or energy is oxygen

so i'm sucking the blood out of your

body i'm sucking the oxygen out of your

body if i keep sucking the oxygen out of

the room you can't perform

when uh the inflation is running the

government says it's running two percent

it's not running two percent because the

measure of inflation

is a manufactured one if i just measure

things that don't go up in price

then inflation is low but if i measure

things that you want like housing is up

27 year over year

the stock market is up 27 year over year

so if you wanted to buy a house or if

you wanted to buy a bunch of stocks the

inflation rate's 27

the currency is losing 27 of its value

that is 27 of your blood getting pumped

out of your body

okay so what we had was a low inflation

environment and it tripled in march of

2020

and uh we went from maybe you know seven

eight percent consistent inflation in

the us to now 24 and we've been running

north to 20 for the past 18 months

so now

a simple observation right you're an

athlete if i told you that everybody's

bleeding what's your first thing you're

going to do call the cup man

stop stop the bleeding call the cup man

you got to stop the blood stop the

waiting you have to okay absolutely so

so the first observation is you got to

stop the bleeding if you're an investor

and how do you stop the bleeding well

if you have have all your money in a

bank account

and it's in uh us dollars you're losing

15 20 25 of your value a year

but if it's in pesos in argentina you're

losing like 40 percent of your value a

year

but if it's in venezuela and bolivar

you're losing 95

right they're literally getting blood

every week it's like you could be

something says

you could be the best investor in the

game you still you're still going to go

out you're still going to be out

if you're in uh an economy with

hyperinflation it's the same as getting

bled to death

and so in an economy like venezuela or

nigeria zimbabwe or most of africa

that's a currency collapse which is like

you're on life support on a ventilator

there is no investment strategy or

business strategy that will save you

right you're you're in deep trouble

if you're in um

if you're in america or in the western

world

then your currency was getting weaker

six seven eight percent a year but now

it's getting weaker 15 20 25 percent a

year depending

we can debate back and forth what the

inflation rate but the reason it's hard

to pin down inflation

is because if you want to sleep in your

parents basement and watch netflix

and order pizza the inflation rate's not

that high

if you want to rent a house the

inflation or rent an apartment on your

own the inflation rate's higher if you

want to buy a house the inflation rate

is 25

and if you you know if you want to buy

other scarce assets then the inflation

rate is running

sort of sort of around the s p 500 index

so if you want a surrogate for inflation

look at the rate at which a basket of

500 desirable stocks goes up in price

and that will tell you the rate at which

the money supply is expanding or look at

the rate at which housing the the

case-shiller index went up 27

year-over-year july

to last july it's running in that range

the last four months that's the highest

rate of housing price increase in since

1987.

so

if if you

want to be rich

your inflation rate is the is the rate

of the s p 500 that's the cost of

capital right

and um what the government says is well

our cpi is is going to measure things

but it won't include energy it won't

include housing it's not going to

include food it's not accurate

if you don't want housing food and

energy then yeah there is no inflation

but in what universe are you not going

to want housing food and energy exactly

your money is

doesn't go very far it doesn't do much

okay so so the first observation is you

know you've got to understand inflation

and if inflation is the cost of capital

and the cost of capital is like the rate

at which the s p index goes up which is

about 27

well for us for a hundred years s p went

up 10 a year so for a hundred years it

felt like

one third of what it is this last 18

months

so

why why did

we get into this uh into bitcoin well

inflation is the rate you're bleeding we

have to stop the bleeding we had a bunch

of cash we had a we had a 500 million

dollar business growing zero percent

with 500 million in cash earning zero

percent interest

and the value of the money is falling at

15 to 20 a year

which means shareholder value is falling

which means that you know if you had all

your life savings and you sat there and

you lost 15 to 20 a year for a decade

everybody in there everybody knows i

can't just save all my money in a bank

account yielding zero percent interest

and expect to put my kids through

college

or retire on that

in a decade your money would get cut in

half two or three times and value right

so

what's the strategy you gotta you gotta

stop the bleeding now what is stopping

the bleeding economically it means

convert your currency

into property

that the the that the government cannot

debase

so you know the venezuelan government

can print a million times more currency

but if you own a house you've still got

the house they're not taking one percent

of the house every week right so

your your question is what property do

you buy do i buy a building do i buy a

house do i buy art do i buy gold do i

buy commodities do i buy stocks do i buy

etfs do i buy crypto do i buy bitcoin

what do i buy

something i got to buy something with my

money you know they tell stories about

hyperinflation in zimbabwe and you know

management consultants are taking all

their money and they're buying like a

bicycle or buy soap

or buy toilet paper buy you know the

toilet paper will hold its value more

than the paper than the currency will

because at least it's still something i

heard that goat was worth more

because it burns longer than the money

that burns

they value the ghost goat even

higher

you know i had money in argentina and uh

and the currency was collapsing you know

it was like one peso to the dollar then

three pesos to the dollar then 20 pesos

did the dollar then 40 pesos to the

dollar now it's like 190 pesos to the

dollar on the on the black market

and my lawyers and finance guys came

into my office they said we got all this

money we got a million bucks i said well

can we wire out the country i said no i

said go buy gold with it and carry the

gold through the airport

no

i said okay well can you just go buy a

yacht and sail it to the caribbean

he looked at me like i was out of my

mind

but you know like a yacht i mean a boat

is also property yeah okay so now why

bitcoin

well if you put your money in a boat the

maintenance cost is 10 the boat might

sink

it's expensive if i buy a house i got to

paint it it might burn down

you know there's leakage there's

property tax it's expensive it's made

expensive to maintain

if i buy gold

well gold is losing two percent of its

value a year because gold miners keep

producing more gold so in 30 years your

goal's worth half as much as it was and

then another half than another half so

gold is gradually losing its value but

it's very hard to move around and nobody

wants to rent your gold

okay at least if you buy a building

someone might rent it if you buy a car

someone might want to use it you might

want to charter a boat but you can't

charter your gold

that's why people like property like

buildings and houses like i'm going to

airbnb a second house and i'm going to

get some rental income

that's the positive but the negative is

i can't carry a house on my back when i

leave the country

and if i have an airbnb in bonus areas i

mean only a small number of tourists

want to use that so i don't

i've got a house who will give me a loan

against it only an argentine bank who

will run a rent the house only an

argentine tourist

and then who will want to buy the house

only someone wants to live in argentina

okay so that's property but it's highly

expensive to maintain it can be impaired

it can be taxed and i can't sell it to a

russian billionaire

so what's the best property gold no gold

was probably in the 19th century

a house land

that's property in the 20th century

crypto asset

that's probably the 21st century bitcoin

bitcoin is the apex crypto asset the

apex property of the human race why

it's the most secure network it's the

strongest brand everybody in the world

knows what it is

it's engineered uh it's engineered to be

the most energy efficient

you know like brazilian jiu jitsu it's

all about energy efficiency

you're in a system with someone else and

the issue is how can you bring all of

your energy to bear and set it up so

that they can't bring their energy to

bear and you're all you're thinking

about energy and leverage

bitcoin is engineered to allow you to

bring monetary energy and leverage it

and to be most efficient

and so

we bought we bought bitcoin because it

was the dominant digital monetary

network

and we swapped our cash

first 250 million into bitcoin and then

and it went up and then we did a dutch

auction where we offered to buy back the

stock of our shareholders if they didn't

like the idea because maybe they

wouldn't like it that's right

well we had 60 million dollars tendered

but we had 175 million dollars that we

had after the dutch auction and we

bought bitcoin with that and it went up

again

and then our stock went up

and then we uh issued uh convert a

convertible debt uh about 650 million

dollars of it and we bought bitcoin with

that and that went up and then amazing

our stock went up again and so we kept

buying bitcoin and we eventually

we eventually uh

we bought three as i said 3.16 billion

but we issued 2.2 billion in debt

at about one and a half percent blended

interest rate so we used our public

company

it's what i do for us i mortgaged my

company i mortgaged the future cash

flows of the company

in order to buy an asset that's going up

in value you got me thinking about more

mortgaging my house right now well let's

say let's say you were sitting in

argentina and you ran a business

and i said to you you know for us i

think that the that the peso is going to

lose 95 of its value over the next 10

years

and you have a business and you're

making like a million

dollars a year and the peso is one to

one

if you keep working for pesos you'll be

making a million pesos and that'll be

worth 50 000

it'll be worth uh worth 120th that much

in 10 years

and so you're gonna lose most of your

money but if you turn around and you

would if you were to sell equity

and then you know in the business and

get paid 10 million

then you buy bitcoin with it

or buy dollars with it in 10 years

you'll have 10 million dollars instead

of 1 million or 500 000 and if you were

to get debt if you borrowed a million or

10 million dollars

against your business and you paid 5

interest

well you pay the five percent 500 000

pesos a year you have 10 million dollars

you buy you buy dollars and then 10

years from now you're still paying 500

000 pesos a year but your 10 million

dollars is worth 10 million dollars and

you're and the rest of the business is

worth five hundred thousand pesos or

something right it's just it's collapsed

to be worth five hundred

it's very small this is predicated on

the belief that bitcoin is gonna keep

going up

it's gonna keep increasing in value

yeah now what i and and i believe it's

going to increase in value but what

makes you so confident that bitcoin is

going to keep increasing

i think the first of all the engineering

is like i mean isn't there a right way

to do something like jiu jitsu

absolutely absolutely like one way is 10

times harder than the other way

absolutely 100

so if you if you study um study the way

bitcoin is engineered

it's it's engineered uh so as to so as

to

organically spread to decentralize

okay it's an open system anybody can

mine it

anybody can move it around and because

the protocol

is open and permissionless

it encourages organic adoption it

encourages decentralization

and um anybody can run their own node

so that the network is millions of

miners and tens of thousands of validate

validating nodes everywhere in the world

so um what you want

is you know what you want in your

superhero is you want indestructible

absolutely if i'm indestructible like if

i'm immortal and indestructible

then

i can just pick up a machine gun and

kill everybody like and they can shoot

back at me but bullets bounce off me i

don't need laser beams i don't need to

be beautiful i don't need to be

the fastest i just need to be unkillable

in that case

so bitcoin is indestructible it's

engineered to last forever and to be

hard

to break and hard to change what don't

you want you don't want more than 21

million right there will never be more

than 21 million bitcoin so

you want to engineer something so that

even like

i

i my company has six and a half billion

dollars of bitcoin right now

i can't change it

i don't know how to start to try to

change it if if i was sitting in the

office of the president united states

and and he had the head of the fbi the

cia and the entire dod the all of us

together couldn't collude to change it

don't know how to if someone held a gun

to my head and said change it or i blow

your head off

i still can't change it

you want to build something which is so

decentralized

it's like let me let me give you a

metaphor

right i can either create a a beautiful

creature a kangaroo or a horse

or i can like release plankton

or algae okay bitcoin is algae i've

released algae in the world it's spread

to the seven seas okay the horse is

beautiful it's in front of me you can

ride the horse but the point is if i

have a gun

i can shoot the horse in the head

how do you shoot plankton mm-hmm it's

unknown okay so why now why is it going

to go up because

we have released this creature in

cyberspace which is 21 million bitcoin

and nobody knows how to stop it or kill

it and no and no individual could

accumulate the power to

and

and it is um it is a darwinian hyper

competitive creature it is the most

competitive monetary network in the

world because

because

politicians want it

bitcoin miners right

if you have a bitcoin miner you can

generate a hundred and twenty million

dollars a year you know off of like an

extra hash okay

it's very lucrative

so

what you have is all of these companies

competing to get that money and then the

way they're competing is they negotiate

with energy companies so the energy

companies want to want to be part of

this

the engineering companies the technology

companies want to produce bitcoin miners

and be part of this

the investors want to invest in bitcoin

mining companies they want to be part of

this

the politicians like the governor of

texas

the mayor of miami the president of el

salvador they want to be part of this

right my volcano is going to be worth

billions that's right

i want a piece of this

right so you have all of these people

everywhere in the world in this mad

scramble to be part of the network

and they're all fighting to defend it

and when they and the strongest ones

right they get they get into the network

and then they turn all of their energy

to defend the network and to improve the

network for everybody else and now

they're all different incentives

for

for investors the incentive is inflation

hedge and there's 500 trillion dollars

of money that's being currently debased

and so 500 trillion dollars getting

inflated to 10 a year is a 50 trillion

dollar problem okay so that's

microstrategy paul tudor jones stanley

druckenmiller bill miller all the

traditional institutional investors

they're looking at this saying

bitcoin is digital gold but bitcoin is

up 130 a year for a decade and gold is

up zero

gold doesn't work bitcoin works that's

one that's one group of people the

second group of people are the

technology people

bitcoin's a technology imperative

you know we're gonna see eight billion

people with digital wallets on their

android and iphone and they're gonna

have digital currency and digital asset

and that means like a digital dollar and

a digital and a bitcoin

and that's spreading like wildfire like

three million people in el salvador in

three weeks so that means you believe in

metcalfe's law you believe that it's

it's user squared that's the value i

mean

it's even more than cash law it's more

it's more than metcalfe's law explains

why facebook and whatsapp works right

right like once everybody's on whatsapp

or once everybody's on facebook you know

the network spreads

you know uh but uh this is something

stronger

because rupert murdoch never showed up

to facebook with a billion friends

you see like like when uh this is

bitcoin is a bank and in cyberspace

and so it's more like newton's law it's

the law of gravitation

which says that

when uh you know when a an asteroid or

when a planet comes into your orbit and

it's bigger than you

it sucks all the atmosphere and all the

it boils your ocean sucks the

atmosphere off your planet and you

collapse into it right and then it

starts it's it's kind of like a black

hole where

it's sucking in the moon the star the

sun the satellite the everything

in its path

and the

you know if it was just metcalfe's law

if it was just a simple social network

then everybody's equal

like like you got a certain number of

friends i got a certain number of

friends you know you bring 50 i bring 50

you bring 100 i bring a hundred on

average the average facebook person

brought like 150 friends or something

but in the world of money like in the in

the ground you know some planetary

bodies are a billion times bigger the

sun is more important than the moon

right right to us of course of course

jupiter is more important than pluto's

to us and

you know and if like elon musk well you

know this right on twitter if elon musk

tweets he's more important than me

and if elon musk buys bitcoin he's more

important than you buying bitcoin

right so

so you're talking about

power and influence and what is money

money is

money is energy money is just the apex

energy of the human race and so the sun

is the most energetic thing in our solar

system and we all revolve around it

right and so what i think

what i think is going on here is you're

seeing energy flowing into a network

it's getting stronger now coming back to

like why i think it's going up forever

it's going up because it's a it's an

economic imperative to investors all of

them all 500 like everybody with money

on the planet has the same problem

right you

you see everybody's got the same problem

because everything you're invested in is

either a currency or it's a currency

derivative unless it's pure property so

so if you have rental

rental housing that's a currency

derivative if you have a stock a value

stock that generates cash flows and is

valued on cash flows it's currency

derivative

right if you have cash it's currency

anything related to cash or future cash

flows is a currency derivative and if

the currency is losing 10 of its value a

year you have to discount the cash flows

by 10 a year

so

as as the monetary base expands

right the extreme example is like

zimbabwe again

when the money supply expands and hyper

inflates

there is no investment strategy that

works other than

convert your money into a hard property

and remove the property from the country

like get it out of it because if you

convert it into property

and you stay in the country the

government will eventually expropriate

your property they'll tax it or seize it

so correct so if you so if you look at

it from a financial or an economic point

of view it's an imperative and it's just

a question of whether or not it's life

or death like in afghanistan

or whether it's just an important

inflation hedge like in the u.s right

that's the first piece but the second

piece is the technical imperative

because

i want this is a big idea digital

property

digital music

right think about what happens when i

turn music into digital music and i

stream it on amazon or apple music

digital video digital music digital

books digital maps

digital retail digital stores right

that's digital transformation that's

what made apple amazon facebook google

that was how you made money as a tech

investor in the past decade

okay most people couldn't really get

their head around digital stuff but

a digital map

a digital map is you take rand mcnally

you put it on a phone you give it to

eight billion people then you

light up the roads with the traffic

patterns and then eventually the map

tells you how to drive

and when by the time you get to the

extreme digital map you've got google

maps and google and it's worth like a

hundred billion dollars

and when it was like analog map it was

worth like a hundred million dollars so

the digital transformation of these

things drove fang stocks for a decade

now i'm going to give you three new

digital transformations

you know gold becomes digital

well analog goals were 10 trillion so

digital gold must be worth 20 trillion

property becomes digital

you know so analog property is worth 100

200 trillion dollars but when i

converted your hotel and your rental

house to digital property

we're going to slurp all the monetary

energy out of that

i can move the hotel digitally from here

to tokyo at speed of light for free

interesting

and then finally

energy becomes digital pure energy

okay and this is a big idea but but bear

with me

you have a hotel

you take all your life savings you buy a

hotel you've got 50 rooms in the hotel

it's in what what city you live in

montreal you're in montreal yeah i've

been to montreal

your hotel's in montreal now your room

night is you sell room nights and you

get 70 occupancy at the average rate in

montreal okay that's a decent business

10 margin

now i dematerialize it and it's a

virtual hotel

now uh the 30 of the room nights that um

that i can't book in montreal i send

them to san francisco or new york and

now i've got 100 occupancy

and then i think wait a minute

uh they pay more for room nights in

london and new york than montreal so i

send them all to new york and

and and uh the world is your market not

your backyard the world

and now

my room rate triples

and my occupancy goes to a hundred

percent and then you go

wait a minute okay now you've got

digital property but i'm gonna i'm gonna

like twist a little bit

now i think well you know people only

sleep in the rooms eight ten hours a day

so i've got i don't know about half the

time

i mean 12 room hours a day i could rent

out to somebody else so now you go

instead of selling

365 room nights a year per room you sell

750 room nights

and then you start selling the rooms by

the hour

so now i'm going to rent out room hours

at the city in the world that will will

bid the highest for the room hours

and you see that what happens shortly is

that your effective occupancy rate goes

to a thousand percent and your rates

quadruple

and instead of like getting a 10 margin

on property which is expensive to

maintain that you get taxed on in

montreal

you're now getting like four thousand

percent profit on property which has a

carrying cost of zero

which is not getting taxed in montreal

so i now what is that that's digital

property but really

einstein said matter could be energy and

energy can be matter right there is no

destruction of energy and matter i can

take a billion dollars and i can buy a

building and what if i convert the

building back into a billion dollars and

put it in the bank i mean it's

what you have you have property is

matter and you have money as energy

and uh and when i get to the point where

i can take your hotel and and and sell

room minutes

what what else did i sell room minutes

it's far more efficient for superior i

decompose it i recompose it there is no

loss

like you can't do this in the physical

world but in the virtual world it

becomes almost pure energy creature

now

what i've described in a way is is sort

of like the promise of decentralized

finance or

or any kind of high-speed high-frequency

finance activity

but the point that i'm making here is

it's not just a digital gold or

inflation edge it's digital energy which

means it's destined to sit on facebook

or apple or amazon or google or flow

through every mobile phone on the planet

and that takes me my last observation

it's a moral imperative eight billion

people it's just two billion people it's

a moral yes imperative to eight billion

people

because there's billions of people that

have no property

and they have no property rights

right like if you're living in africa

and you have 500

well how do you store it if you buy the

local currency it's going to zero in 12

months

how do you buy 500 of a building in

montreal when you live in africa exactly

how do you buy 500 of stock when you

live in africa this is huge yeah you

can't so what do you do you 500 of gold

how do you buy that

i mean what do you do with the money

right how do you avoid having it stolen

from you or debased or degraded

so here that biological metaphor i give

you is

if you have no bank and if you have no

property rights it's like you're a type

one diabetic

that you know a diabetic has no insulin

and you can eat all day long but you

can't create fat

if you have no fat fat is an organic

battery

and if you have fat you can live 60 to

90 days without food

no fat you starve to death i mean

there's a reason to have it on your body

the reserve so if you have no bank and

if you have no property rights

you can't store economic energy which

means in the week when you lose your job

or when you don't hunt you don't eat and

then you starve to death or your family

starves

so what you've got is billions of people

in abject property

if you want to give

music or joy to a to eight billion

people you need digital music

and if you want to give an education to

eight billion people you need digital

education very true and if you want to

give wealth to eight billion people

you need digital property 100

you you just can't do it you can't give

the human race wealth

and you can't give them economic

security unless you have a technology

that allows you to let them buy

uh 387 of property for zero cost move it

at the speed of light and decompose and

then recompose it and carry it on a 50

phone in their pocket

if you have that

you can give economic empowerment to the

entire world and

it's it's a nice to have if you live in

a rich city in north america

but it's a matter of life or death

if you live in a hyper-inflating economy

afghanistan syria lebanon iraq all of

africa

do you know that uh there are 66

countries for us that have dollarized

what that means is

you know what it means to dollar eyes

i'm going to give you another matter if

you take the american dollar correct it

means that your currency collapsed oh

okay

okay so i want again take your best

fighter take your best athlete put them

on life support on a ventilator

and and transfuse them with blood

that's what it means when you're

dollarized it's like you're on life

support in a hospital because your own

organic system won't live without being

a life support you've got 66 countries

that don't have functioning currencies

now what's the problem with that the

problem is

they can't buy the dollars because they

don't have banks so

if i turn off your currency

and if you can only get dollars through

a foreign bank

and you can't get a bank account

then you don't have property or you

don't you can't store your life forces

energy

and so it's a real

humanitarian problem

so coming back to your question why is

bitcoin going up bitcoin is going up

because it's solution to 8 billion

people's problem because people on the

left want it because people on the right

want it because the technologists

need it because it's so decentralized

it's a virus you can't stop it

and it's an idea whose time has come

and lastly

you know if you look at the history of

the human race

you know fire was harnessing chemical

energy

you know if you look at how the romans

beat everybody you know they didn't do

it with hand-to-hand fighting i mean

they did it with ballista and catapults

and missile weapons they would stand

back

and they would blast kinetic energy 400

to 800 meters away

if you if you trace through the history

of mankind

fire water electricity explosives

right

jujitsu why does brazilians you just

went it's a more efficient

system for combat right correct bitcoin

is more efficient than gold it's more

efficient than fiat money it's more

efficient than storing your money in an

airbnb rental apartment

it's just the most efficient energy

system

and rational people everywhere in the

world

they looking at it saying

what why wouldn't i want to store my

money in a property

that is the apex property of the human

race

i talked to one guy in istanbul today

and i said

you know if you have money in istanbul

you can put it all into a second house

maybe a taurus in istanbul want to rent

it by airbnb maybe someone instable will

buy it from you maybe a bank in istanbul

will loan it loan you money against it

but you're talking about 0.1 percent of

the world being interested in your

property

but if you put your money into bitcoin i

want the bitcoin

if you put your money in bitcoin no

property tax

it'll last a million years a thousand

years it's it's not going to decay it

doesn't get rained on

you can loan it to anybody in the world

any bank in the world might give you a

loan against it

right so you can use it as collateral

anywhere in the world you can generate

rent on it anywhere in the world and in

the day when you need to sell it

every wealthy person on earth is going

to want it right so so that's why it's

apex and the question is why is it going

up because it's better than everything

else you know and if you think there's

something else that's better than that

yeah then you buy that but i have

searched the world over i considered a

thousand things i can't find anything

better

okay let me throw let me throw a thought

experiment at you and and you can

clarify everything you said i think

if you uh

if you follow me along here imagine i

were to paint your fence okay because

this is from john locke my my

background's in philosophy one of the

greatest most respected thinkers in

history is john locke he influenced the

founding fathers no doubt the guy there

was a brilliant man he says look you own

your body and you own your labor you're

using the word energy he he used the

word labor if i go and i till a land i

build on that land i farm on it i make

it livable i build a you know

a nice little village i own that village

we own that village we put our time and

energy in that village and therefore

it's an extension of our body and we own

it this is what he says

so for instance if you ask me

for us paint my fence and i paint your

offense

you you pay me a hundred dollars to

paint your fence that hundred dollars is

the accounting for my labor i don't own

that fence now you own that fence you

you gave me a hundred dollars that

hundred dollars represents my labor or

how you put it my energy now if i were

to take it in u.s currency versus

bitcoin if i take a hundred dollars

worth of bitcoin or a hundred dollars

worth of american currency which one of

these two will preserve my energy better

and

why the the us currency is going to lose

energy anywhere from seven percent to 25

a year

it's a

fiat or the us dollar is a battery

that's draining at 20 a year right now

gold is a battery draining at two or

three percent a year right now

bitcoin is a battery that doesn't drain

it's charging doesn't drain in fact it's

charging it's been damping up at a

hundred plus percent a year

it's definitely

and it

when i give you the money you have the

option to convert the hundred dollars

into bitcoin immediately

you could also go the other way and

convert the hundred dollars

into uh pesos

okay um and if you look at the last year

if you converted the hundred dollars in

the s p you'd be up 27

if you bought a typical house you'd be

up 25

if you bought bitcoin you'd be up like

400 percent if you held it in dollars

you'd have a hundred dollars but the

hundred dollars wouldn't buy as much as

they would have bought

last year

so so bitcoin is a battery i mean you

can think of these

all assets

all assets are repositories to store

energy or to store money if you want to

call it money you want to call it energy

you want to call it work

right

um

they're all just different ways to store

that energy over long periods of time

what's the worst one like the venezuelan

boulevard it's the worst one

right that's awful yeah if you took the

money and you bought electricity

pure electricity if i give you a million

dollars of electricity and you put in

the best battery you lose two percent a

month

so pure electrical energy loses 24 a

year

and if you wanted to move the

electricity 100 miles on a line well you

need the line

and you lose six percent of it

right so you can store your uh your

money in different things and they all

decay look you can buy sheep with it

you can buy hamburgers with it right i

mean you can buy packaged food with it

so some things last a long time other

things don't

but here's the really big problem for us

all these other things you can buy like

let's say

you know you're coming back to john

locke john locke said you spend an

entire year and you build a house for me

and i pay you a certain amount of money

well so you take the money and you buy

your own house

well you don't really own your own house

in in the physical world if you own a

house or or you own

a herd of cattle or you earn a bunch of

gold

those are all spoils of war

i can take them from you too right with

violence true i can take your house i

can tax your house very true

right the problem with gold is i can

just murder everybody and the goal is

still there

might is right sometimes

okay so if you look at the history of

humanity bitcoiners are pretty

passionate we're you know there's a lot