The Bitcoin revolution & risks with Michael Saylor (Part Two)

micro strategy executive chairman and

self-described Bitcoin maximalist

Michael sailor explains what it may take

for more companies and governments to

follow his Bitcoin adoption Playbook if

you want to see uh the people with all

the money and the power in the world

embrace the asset they have they will do

it when their vendors support the asset

and that's a Rippling thing right

because until you have the fair

accounting people can't can't see how

intelligent the idea

[Music]

is I want to talk about the Bitcoin

Revolution sailor is bitcoin's biggest

Advocate but he wasn't always this way

in 2013 he tweeted that bitcoin's days

were numbered now he's out there

encouraging other companies to spend

their cash on bitcoin holding a Bitcoin

for corporations event to share his

strategy so

Bitcoin there is no second best and many

are adopting it this year bitcoin's

total Market surpassed 1 trillion us as

institutions drove an inflation point to

coming out party for Bitcoin I think

Black Rock vanck and other firms

launched Bitcoin exchange traded funds

in January this year giving investors a

means to get exposure to bitcoin's price

through the stock market

you do not sell your

Bitcoin so what does sailor think is

bitcoin's next big moment you are the

biggest Bitcoin bull I think in the

world easily right now but you are a

bull among a lot of beers out there

still it even took you what seven to

eight years to sort of convince yourself

that Bitcoin was something that you know

you should convert your own balance

sheet to and obviously now you're doing

it but how do you convince others the

big Tech players out there the Giants

meta Google Microsoft how do you get

them to flip like like Larry I I think

uh you have to make it easy and you have

to give people uh Gateway products that

they can use you have to give them

Bitcoin with guard rails you have to

give them domestic Bitcoin not wild

Bitcoin um what is that what's domistic

Bitcoin versus wild Bitcoin is that like

ibit versus on market and Cold Storage

you know raw Bitcoin is buy Bitcoin you

know and you self- custody it you know

and the next is you buy Bitcoin with a

custodian but more domesticated a simple

domesticated Bitcoin is ibit an

fbtc I buy it through Black Rock right

and that's a lot easier to handle

um there's again we're back to $900

trillion of capital Real Estate

Investors they want to buy something

that looks like real estate right and

bond investors want to buy something

that looks like a bond and preferred

stock wants to buy something that looks

like preferred stock and some people

want half the upside as a capital gain

but they don't want the downside so they

got to find they got to buy something

like could convert and options Traders

they want to trade options so when bitco

Bitcoin first came out there were none

of these things and then for a while

there's an entire crypto economy that

was created offshore you you know uh to

much colorful drama and anxiety like the

ftxs of the world Etc well those are

unregulated crypto exchanges and and

conventional traditional regulated

investors

can't trade in that and and it's

probably good they didn't right because

most of them

failed so what we're watching right now

since 2020 is the creation of the

institutional vehicles in order to

invest in

Bitcoin and uh you know I've got this

saying I say everybody's against Bitcoin

before they're for it right we're all

against it until we're for it I was uh

you know why why are you against it it's

like well why are you against

electricity in 1880 you know the I'm

sure the first guy with fire he scared a

bunch of other tribesmen and they're

like you know what what happens you get

too close to fire it burns you burn no

one wants to get burned right the the

idiom is no one wants to get burned and

yet Without fire we're not better than

the Apes and then what happens when we

play with electricity we get shocked who

wants to get shocked it's another idiom

in the English language shock is bad and

yet without

electricity like 90% of humanity is dead

I love that the siren just went off in

the background is like as you were

talking about this the shock it it

happens and so

new technologies are scary right people

thought that if you gotten an automobile

went more than 10 miles an hour it would

suck the oxygen out of the cabbin and

you would suffocate can't be bter than a

horse right yeah so so if you look at

the great Revolutions in energy right

fire was extracting energy from matter

you know uh water was extracting energy

from Gravity right that's the big idea

there's gravity there's energy in this

field if I put water there and a water

clock and it comes down here I can turn

a wheel with it right big idea and then

wind extracting energy from the

atmosphere and then the steam engine is

let's let's refine the entire idea and

move the you create an engine that takes

that energy and Spins something so that

kids don't have to do it right you know

the steam engine eliminates slavery it's

a pretty good idea right uh and then

after that you know gas

and internal combustion engines and then

you know what what follows next nuclear

reactors and electricity and each of

these energy revolutions it was a

shocking scary paradigm shift and for 30

years people rejected it and they had

good reason because their City burned

down and their house burned down and

they got electrocuted and my airplane

fell out of the sky right it's like the

and and if you study James Watt you he

spent his entire life trying to make the

steam engine work not easy right it's

not easy bitcoin's digital energy

Satoshi figured out a way to both

transfer and store to basically store

and channel energy through cyberspace

without an

intermediary that's a profound

breakthrough because that means I can

put a billion dollars in

cyberspace I can move it 60 times a

second I can hold it for a million years

and and I'm not facing counterparty risk

to a bank a country a currency a

corporation right a culture you know a

commodity manufacturer and so that's a

profound idea we're 15 years into the

Innovation we're only four years into

the you know to the crazy years and

really January

2024 was really the beginning of this

era maybe this is year zero of

institutional

adoption when when we have regulatory uh

acceptance Bank acceptance and

accounting acceptance of Bitcoin those

three

planks that's year one of adoption and

when do you have that well you kind of

got

75% regulatory acceptance since we got

these ETFs not all most uh when we have

ibit trading on the options Market

that's a big step forward and when you

can do inine create and redemptions of

the ETFs you've got full regulatory

acceptance of the

asset then January 2025 uh fair value

accounting becomes the norm and now You'

got accounting acceptance and now you

can mark up and mark down the asset just

like Apple stock or just like other

assets and then when you have twoo big

to fail Banks when you have the bny

melons of the world or the JP Morgans of

the world the state streets of the world

they custody the Bitcoin or theyy Buy

and they sell and they hold the Bitcoin

you'll have banking acceptance and what

are Banks Banks are just institutions

that are engineered to be custodians of

financial assets so of course the

greatest custodians of Assets in the

world need to custody this asset so we

are we're right in the middle of that

and I think maybe 2025 you can call year

one of the institutional error of

digital Capital that thing which is

Bitcoin I want to come to the banks

because I'm very keen to talk to you

about how you see Banks as being key to

unlocking that next phase but just on

this corporatization and even perhaps

government adoption what do you think is

the fear other than just volatility I

mean is it fear of completely disrupting

economic theory and monetary policy as

we know it is that the fear that these

corporates and that governments hold so

I I

think the issue uh is not really with

the asset class I I think any

conservative or any traditional investor

if you're a high net worth individual a

family office if you're a successful

Corporation if you're an agency a

government or any political entity and I

introduce new

technology you know like say I come to I

come to the government I say I got this

electricity thing and you don't have any

electricity in your building well what

they would do is go to their contractor

they've got some contractor that built

the building and they would say can you

backfit or rewire our building for

electricity and the contractor said no

man uh you know because my competitor

just did it and they got shut down and

bankrupted and my other you know another

person did it and the building burned

down so we're not going to do it for a

while we're afraid right um in that case

they would they wouldn't just just

Embrace electricity immediately the

equivalent of the building contractor

for uh Bitcoin would be the bank so when

your Rich Uncle you know gets asked

about Bitcoin he's like well I call my

broker I called my bank JP Morgan or I

called The Standard Charter or whatever

and they won't buy it for me yet they

say it's too risky well I'm just going

to hold off a bit so if you want if you

want to see uh the people with all the

money and the power in the world embrace

the asset they have they will do it when

their vendors support the asset and

that's a Rippling thing right because

until you have the fair accounting

people can't see how intelligent the IDE

is the difference between Fair

accounting and indefinite intangible

accounting for a big company is under

Fair accounting you would know within 5

Seconds whether you had a good quarter

oh we made like $10 a share under

indefinite account indefinite and

tangible accounting you would have to

read 250 pages of documents and create

your own proprietary models and spend

somewhere between 1 and 10 hours to

figure out how you feel about the

quarter and and even then it wouldn't be

that succinct would it it wouldn't

necessarily give you like a figure you

know the 70 year old billionaire isn't

going to take 10 hours they can't even

read the document right and so

we you know you you could get all

intellectual about this and say oh

they've thought about it and they don't

like this and this and this that's not

the case it's if I call my broker and

say buy $10 million of this and they say

you sure boss click and it's done then

you start to see adoption and when the

company that adopted it announces they

just made twice as much in their

earnings for the quarter as they used to

because of it it's like well then buy

more of that stock and when the mayor of

Miami or the mayor of New York City

the governor of Texas says to his

Treasurer I think we ought to have some

Bitcoin the treasur says okay no problem

I'll let sit a group or Bank of America

or Morgan Stanley no and they'll do it

click and it's done then you're adopting

but when the governor says the treasurer

buy 10 billion and the treasurer says

there's not a single Bank in the US that

will sell that to us he's like well I

guess we're too early and it's the same

thing with you putting an elevator into

your house or electricity or how about

running water

you know why why didn't people put

running water in their house you know in

1880 it's because it was like you had to

be rich and it was expensive and one in

a 100 people had it and the guy that's

building your house didn't know how to

do it he'd never done it before you know

and and so these things get

embraced as everybody in the society

gets comfortable with the new technology

and generally it's like a 30 day a

30-year generational shift you know and

year one no one's doing it you see those

pictures of New York City in 1905 no

cars

1915 Everybody's Got a Car you know it's

like well what did it take you know just

it took this exponential set of

processes and support uh for this to

happen and the same is going on with

Bitcoin right now you mentioned yield

and Michael every single time I do an

episode on bitcoin my there's always

somebody in the audience who says yeah

but if I buy it then I earn no yield on

it it's not a stock I get paid a div

dividend quarterly it's not a second

property that I can rent out it's not

money in the bank that I can earn a

savings yield on so when or if but I

think from what you're saying there when

Banks whether at JP Morgan City start

adopting it and allowing us to put our

Bitcoin in the bank I've heard you speak

about this what happens there and how

are banks key to unlocking that next

phas yeah let's say I give you 10 acres

in

Manhattan there's the land you buy the

land you can buy the land in 1700 1800

1900 the year 2000 is it worth

something you know would you sell it to

me for a penny if you owned it no it's

worth something right but there's no

yield it's raw land there's no yield

well give it to me for a penny there's

no what no it's like it's Central Park

but there's no yield right okay so

what's what's the solution to the

problem well you take the land and you

put a and you have a company a real

estate

developer and the company builds a

building on the land or parking lot

right and and then they rent it out and

they generate the yield and okay so do I

like that or not well there's

counterparty risk I got I'm I'm buying a

security I'm buying a Reit there's a

Company the company might build a

building that falls down they might get

a dead beat you know so the point is

there's risk so you want a reliable

company that you trust too big to fail

to take that risk and give you the yield

a bank well the micro strategy is doing

it right now right like we just

discussed BTC yield so micro strategy

takes the Bitcoin and then we do

something we actually find a way to to

uh to take out a loan reinvest it and

generate a BTC yield and and the price

you pay is you take a risk with a

security called mstr right so Banks do

it a different way I mean bank will take

your asset you have a billion dollars of

something a billion dollars of Apple

stock and they may loan it out to

someone else and they may get paid a fee

by the one person that wants to borrow

it they might pass it on to you and they

might not right so so sometimes they do

they'll definitely do it with your

treasuries or or with your cash

sometimes they don't depends on who you

are I think that banking uh banking is

just the next logical step but in terms

of how am I going to get a yield on

bitcoin I'm going to get a yield when a

thousand companies in in in the Russell

2000 buy Bitcoin operate their existing

business sweep their cash flows into

Bitcoin and do stuff with it they

develop business on top of it right

that's a way to get a yield and I'll get

a yield if uh two big defail banks that

are well

capitalized they um uh they start to

accept Bitcoin is collateral and

probably you don't get a huge you by the

way if you if you think about the

metaphor it's like when you own Apple

stock it's uh you know oftentimes you

don't get a yield by loaning your Apple

stock but big corporations do the big

investors actually get paid a small

interest rate when they own loan their

stock to people that want to short sell

the stock and so there is a market there

for that but more likely the next stage

is uh a big Bank Bank accepts your

Bitcoin collateral alongside your Apple

and your Microsoft stock and your

treasury bills is

collateral and they give you some

Advance ratio against it and then you

can borrow it suur plus some spread

against it because it's you know no

worse collateral than Apple stock as a

block is and so you'll start to see the

formation of credit markets around

Bitcoin well let's consider that within

bitcoin's characteristics and you've

already spoken about

Satoshi let's go back to the beginning

the Bitcoin network was started by

Satoshi Nakamoto on January 3rd 2009

that Genesis block included this message

a headline from the times quote

Chancellor on brink of second bailout

for banks it was followed by this public

forum Post in February 09 announcing a

new peer-to-peer ecash system called

Bitcoin to this day no one knows who

Satoshi is but the network he her or

they built has been operating for 15

years and 289 days when we released this

video with almost 100% reliability the

network has gone down twice in its

history in 2010 due to a bug and 2013

due to a fork in the chain both were

fixed within hours satoshi's creation

wasn't the first attempt at a currency

native to the internet but it's clearly

the most successful due to its design

that has no central point of failure

from the beginning Satoshi didn't

allocate any initial Supply to

themselves for the first year and a half

Bitcoin wasn't worth anything except the

cost of running a computer to mine it to

create Bitcoin miners are required to

solve mathematical problems to add a

block to the chain that proof of work is

then verified by all nodes on the

network

the work required to mine Bitcoin can

change due to What's called the

difficulty adjustment and the reward

earned by miners halves every four years

meaning Bitcoin has a predictable

decreasing inflation rate as it becomes

more scarce over time bitcoin's total

Supply is capped only 21 million Bitcoin

can ever be mined unlike fiat currency

that can be printed by authorities at

the time I was making this video Bitcoin

Supply was at

94.11% that's more than 19 million

Bitcoin in existence the currency is

fully decentralized meaning there's no

Authority or state that oversees it

unlike the US dollar which is controlled

by the Federal Reserve and is a system

based entirely on trust but if sailor

wants Banks to hold Bitcoin does that

put it at risk of becoming more

centralized exactly what its supporters

wouldn't want a to be if there is more

Bitcoin Bitcoins held with these third

party custodians what risk does that

pose having greater Supply held by fewer

large institutions does that increase

the risk of seizure and confiscation

like we've seen with gold and is that

not exactly what bitcoiners don't want

to haveen no I think it's the opposite I

think that when the Bitcoin is held by

uh a bunch of crypto

anarchists who aren't regulated entities

who don't acknowledge government or

don't acknowledge taxes or don't

acknowledge reporting requirements that

increases the risk of seizure if you

know if a a country in

desperation if China knew that there

were underground crypto Traders with

billions of dollars of of Bitcoin in

their midst that didn't pay taxes the

Chinese would probably try to shut that

down and that's what they do so so

normally uh the risk is greater when

they're unregulated private entities

that are perceived to be holding the

asset when you have regulated public

entities like Black Rock and Fidelity

and JP Morgan and State Street Bank

holding the asset well all the lawmakers

and all the law enforcement arms they're

invested in those entities right so

there's no way that all the Senators and

all the congressmen are going to seize

the assets from Fidelity and black rock

or Vanguard because that's where all

their retirement money is invested so so

the the asset moving from private to

public hands and moving into regulated

entities it does a bunch of things it it

decreases the volatility it decreases

the risk of loss it decreases the like

like who do you trust more as a

custodian

FTX or Fidelity right or Vanguard or

State Street right and if you walked

down the street and you said you know

would you put all your family's money in

an offshore entity without a

headquarters run by five dudes without

an auditor or would you put it with a

bank that's too big to fail in the US

right like at the end of the day you you

have an OG crypto Community is very

hardcore about it but if you look at

where all the money is

99.9% of the money is actually in the

traditional economy and in the war for

the future of

money the war is going to be one with

money right I mean right at the end of

the day Bitcoin is capital who's going

to actually decide who's the winner or

the loser the people with the capital

and so where is the capital it's a

Vanguard Fidelity State Street JP Morgan

Morgan Stanley they're all regulated

entities of sorts so when Bitcoin is

held by those entities it becomes

regular and normal and you know people

would no more think about seizing that

than they think about seizing a building

in the middle of Manhattan or seizing

you know the you know the S&P spider

assets is why why would you do that

that's just the capital that you built

the country on well if you ask why would

you do that if you consider the Great

Depression I mean people thought that

their gold was safe in Banks until the

executive order of 1933 so we're not

entirely safe I mean I know that's kind

of a wild thing to suggest may happen

again but history does repeat itself so

people's Bitcoin wouldn't be entirely

safe it's people say that but mostly

it's mostly it's paranoid crypto

anarchists that say that okay because

it's it's a it's a myth and a Trope that

goes on over and over again but first of

all he didn't really seize the goal

people voluntarily turned in the goal

they didn't go and kick in everybody's

door arrest them shoot them and take

their goal that never happened first of

all he for it second of all he didn't

seize all the property he didn't go

seize all the buildings owned by wealthy

people in New York he didn't seize all

the stock

portfolios of wealthy people in New York

right gold was the monetary asset

backing the dollar the dollar was

literally $20 you know to the ounce of

gold right and so the problem was the

country was on the gold

standard and Franklin Delo Roosevelt

wanted to devalue the dollar he wanted

to devalue the currency he wanted to

print more dollars and so they had to

actually do something so they could

devalue the dollar and the way they did

it was put that executive order in place

and then they revalued the dollar to

$34 per ounce a

devaluation and and now you have to ask

yourself the

question is the United States on the

Bitcoin standard maybe we will be soon

but the point but the point really is

we're not right it's totally not a a

reasonable

comparison um Franklin Del a Roosevelt

didn't seize every car and every watch

and you know and every piece of real

estate and every piece of equity in the

United States because we weren't on the

equity standard or the property standard

or the or the chicken in every pot

standard or the grassy lawn standard or

the lawn standard stand we were on the

gold standard and he wanted to devalue

on the gold standard and so today we're

not on the gold standard we're not on

the Bitcoin standard the US government

has no problem printing money they can

print as much as they want and in fact

every government on Earth all of them

they're either on their own standard or

they're on the dollar

standard so in this particular case uh I

don't think we have to worry about about

you know Bitcoin held in custody being

seized by the government any more than

you have to worry about your Apple stock

being seized by the government because

the government doesn't need to devalue

the dollar against Apple stock to print

more dollars either so it's not really

an issue it's often times it's you know

people have these

inflammatory you know tropes or

inflammatory memes that they they use

and it's like I say that because I want

you to give me your money okay like I

want if if you don't

trust the bank then you'll buy my

Hardware wallet if you don't trust this

government you'll move to my country and

you'll buy a passport from me so if you

don't trust that company you'll sell

that stock and buy the other stock so

there's a lot of a lot of this kind of

of mess meing and ideas that they're

very

inflammatory and they're meant to

actually Stampede people into some

Behavior whatever which is financially

beneficial like like you can't make your

own investment decisions investing is

very hard you should give me your money

I'll make the decisions for you I'm

going to charge you 2% fee and 20% of

The Upside it's like well what should I

do about hyper well you need to invest

in a diversified portfolio of Global

alternative assets across 152 different

asset classes and revalue every quarter

oh I can't do that okay that's okay give

me your money girly I'll do it for you

right that's the kind of fear-mongering

to get you to give me your money right

and I use it to sell you a gun to sell

you a hardware wallet to sell you an

account to sell you a financial advisor

to sell you an insurance policy to sell

you a you know fill in the blank right

whatever it might be and ultimately I

think that um there's just a lot of fear

that's unnecessary the bigger idea is

Bitcoin is digital Capital it's a

million times smarter a million times

faster a million times stronger a

million times more elegant than analog

Capital physical capital and financial

capital and it's simply a technology

transformation it's it's like don't

store don't take 10,000 records and haul

them around with you and 10,000 books

whenever you travel take the iPad with

10,000 books on it and take the iPhone

with 10 million songs on it when you

travel right it's like blah blah blah

but the phone will eat me and it's

listening to me and it will steal my

identity and kill me it's like it's it's

just a computer with some digital files

on it right and so that's that's the

digital transformation of capital and

that's what Bitcoin represents so on

digital money then tell me if this is a

legitimate fear or not Quantum Computing

it apparently is going to have the

ability to solve multiple more complex

mathematical mathematical equations all

at once does that pose a legitimate risk

to the Bitcoin Network or are you

confident that developers will come up

with some kind of quantum resistance no

it's just it's just another fear

mongering end of thee World scam

narrative that people use to sell stuff

and in this case Quantum Computing the

fear is used to sell the next altcoin I

have a Quantum resistant token and

quantum computer is going to destroy

your token so give me your billion

dollars and give it to me and make me

Rich because maybe an asteroid will hit

the earth I have an asteroid bunker give

me your billion dollars and I will give

you my asteroid bunker you're gonna die

of pneumonia give me your money and I'm

going to give you a vaccine right you're

going to you know it's just fear

mongering um Quantum Computing is a if

you take the general theme it's like oh

computers are going to get better over

time and as they get better maybe

they'll get really good and they'll be

able to hack systems and what's your

response well I guess I just shouldn't

use I shouldn't invest in Apple or

Google or Facebook or I shouldn't have

money in a bank and I shouldn't use a

computer because computers might get

hacked huh I guess I okay so give up

everything in your life that has a

computer in it right including the

the podcast that you're running right

now give it all up because one day

quantum computers run by Dr Evil will

hack the

thing okay well I mean the answer is

it's silly of course computers will get

better and as the computers get better

we will adopt the better computers to

defend the net the network the Bitcoin

Network used to generate hashes a th000

jewels per Terra has it took a th000

Jews to generated a terahash and then it

was 500 and then it was 100 and then it

was 50 and then it was 30 then there's

15 and the next will be five and it'll

be one and doesn't take a rocket

scientist to figure out that computers

get better semiconductors get better the

network gets more secure it's like but

but but but but what if someone invents

something that's better than the better

thing well well we spend 10 billion a

year to keep upgrading our thing and you

think that Dr Evil like many me in the

basement with no money is going to come

up with the quantum computer that's

going to be better than the 10 billion

dollars we spend for the last every year

for the last decade so yeah if a teenage

kid with 50 bucks and a rubber band

comes up with something better than a

hundred billion dollar of semiconductor

investment then in theory they could

hack our network but why wouldn't you

just hack X and declare nuclear war on

someone and like short the market and

make 10 billion dollar by hacking the

president's account I mean illegal but

well I mean the point is it's all

illegal but my point is it's a billion

times easier to just hack the bank or

hack the communication Network and make

money than it is to hack Bitcoin Bitcoin

is the most cyber resistant the most

powerful digital Network on Earth it's

the hardest thing to hack so when

someone pitches Quantum Computing it's

normally it's a degenerate 20 something

crypto Trader that wants you to buy his

yo-yo Quantum coin and make him Rich

because he's got a yo y yo Quantum

algorithm and I just shake my head

because I think who could be so stupid

to fall for this kind of

alarmism uh it it's uh it's ridiculous

and a waste of time but having said it

all the generic Statesman like answer is

technology will advance Bitcoin is the

best most profitable use of computer

power in order to protect money if

technology advances you got to believe

that the people most incentivized to use

thech technology will be the one with

the trillions of dollars of money to

protect it will go there first all those

advances will be first implemented into

the Bitcoin Network to defend the

network they won't be used by teenage

boys to attack the network probably

teenage boys would rather hack Twitter

it'd be cooler we're just G to go aead

but it's been done it's been done again

it's very simple to do it's a billion

times easier to do to hack these

communication networks and so that's

where your threat will

come to sum this all up and I would love

you to give a again a non-stat man like

answer to this one Michael but can you

give us your Bitcoin superiority complex

about the asset and can you we in some

of what you spoke about earlier about

government's printing money and if you

consider the economic cycle that we've

been through over the past four years

while you've been accumulating Bitcoin

like crazy how has that in your mind

increased its superiority

so you know a short summary why is

Bitcoin better first of

all if I had a hundred Rich families and

they lived all over the world and they

didn't trust a government and they

didn't trust a bank and they didn't

trust a corporation and they had a lot

of money and they wanted to keep their

money for a thousand

years if God came down from heaven above

and said hey I'll run the god bank issue

21 million God coin and I will make sure

that no one can steal your God coins you

can buy in however you want and you can

trade telepathically with each other and

I'll do this for

free they'd probably accept that right

the history of the human race is people

looking to heaven to solve their

problems in every religion okay in the

absence of God coin and God coming down

to do this the next best thing would be

an intelligent engineer that creates a

crypto Network that combines

semiconductor technology

public private key encryption and the

internet

tcpip okay that's a crypto coin so now

we create a crypto coin and the question

is who's going to run the the software

because nobody trust anybody and maybe I

trust you and you trust me but I don't

trust your idiot great-grandson you

don't you even had him yet I mean how

could we trust your great great

grandchild okay so we're all going to

run the software and we're going to run

it on thousands and hundreds of

thousands of nodes and anybody who

software cheats gets kicked off the

network okay that's the idea Bitcoin

it's basically a crypto asset Network

now the question is okay I figured that

out now what kind of monetary policy I

want I want 21 million hard cap forever

never can make anymore I want a scarcity

I don't want anybody can make nobody can

make anymore okay that's good now the

question is okay I did that now which

network is going to win so we launched

Bitcoin as the as the 40th try and the

first one with the right monetary policy

the right cryptography and a and an

equitable launch Satoshi launches it

walks away forever disclaims beneficial

ownership it's an Immaculate Conception

okay what if somebody else launched

another crypto network with an

Immaculate Conception you know there's

been 5 million cryptos launched most of

them are not immaculately conceived some

of them still have the founding teams

that are getting rich off of them when

there's a founding team getting rich off

of them with with a jet and with an

office or with a mansion it doesn't look

Immaculate there's no Satoshi in a

swimming pool flying his jet around as a

billionaire right that's why maybe he is

we don't know we don't know who the who

he she they are and the point is we

absolutely know there isn't because the

coins have not moved in 15 years and we

can see them

so now the question is you got all these

smart families and they're staring at

the crypto gold network if you will or

Gold's not even a good good example just

a crypto bank and the question is which

network is the best

one well we sort through it and we try

Bitcoin and it and it kind of works for

a while and then we trust it more money

gets onto it you know and for a while

we're not sure and then 2020 some crazy

entrepreneur buys $250 million of it for

a public company and that's the first

time in you know 10 years anybody ever

bought a quarter billion dollars on that

Network and people are like oh my God

yeah and then that same person buys

another $9.7 billion dollar of it and so

we he must be crazy my God okay so in

that time where there's one company

micro strategy buying 10 billion do of

that

asset it's not a single person ever

publicly spent 250 million on any other

crypto asset ever of the 5 million

nobody even put in the first 250 million

nobody put in a 100 million right go

find it you won't find it so now you

have an interesting issue which is why

is Bitcoin the winner it's because all

the smart money in the world decided

that's the winner did it have to be well

no it's like why do we speak English

because all the rich powerful people

decided on English could it have been a

different language it could have been

French Napoleon wanted it to be French

but it wasn't French it was English Eng

why do we use base 10 math CU all of the

rich powerful engineering companies use

it is it the only form of math no

there's base two base eight base 16

right same with measurement stands why

you you know we have the big joke about

the metric system right we're still

trying to work through that protocol so

Bitcoin is the protocol that the rich

powerful smart people chose okay so you

can Fork it and create your own and you

will have to find stupid poor people to

buy yours but why would I actually want

to put all my money in the network with

the stupid poor people when I've already

got the network with the smart rich

people right and and the result of that

is Bitcoin is the most powerful crypto

Network in the world and you can measure

it via computer power 700 x aash that's

$40 billion of special purpose

semiconductors that generate more hashes

than all the computer power of Microsoft

all the computer power of Amazon all the

computer power of meta if they all

ganged up on it they still can't get the

700x has it's the most powerful computer

network then it has 18 gaw 18 gaw of

electric power that's the most powerful

electrically powerful Network 18 gws is

more power than the US Navy uses to run

all the aircraft carriers and the

Destroyers and the battleships wow we

conquered the world with less than 18 GW

wats of power it's 18 fullon nuclear

reactors running fullon right spread

everywhere in the world okay how does

that compare it to the second P the

second pest has like 0.1% that much

power one you how you know how about the

hash rate 1% maybe and then $800 billion

of actual

Capital micro strategy spent 10 billion

to get

1.2% work it out in your head look at

the fouryear simple moving average of

Bitcoin multiply by the number of

Bitcoin look at the trading volume look

at real people thousands of

institutional investors with real money

at risk the Bitcoin miners the black

rocks Etc right like uh 70 billion 60

billion doar put into just the ETFs

alone real money right 800 billion in

capital had backed the network so what's

the second best the second best doesn't

even have eight

like 99% of the real money went into the

Bitcoin Network everything else you read

about in crypto right all the other

crypto assets that might be a store of

value I'm not counting the stable coins

because they're just dollar pegged but

everything else probably doesn't even

have eight billion it might have a few

billion dollars right so it's like 99%

to

99.9% dominant and then you go to the

political power well there's 420 million

crypto people that love crypto but

what's the reserve asset of crypto it's

Bitcoin 420 million voters and then 200

million people that hold an instrument

back by

Bitcoin so what's the source of the

network political power electrical power

digital computer power economic power

right that's you know that's the source

of power of the network it's like well

why should I buy that well

once you understand that it's the

dominant crypto Network now the issue is

well why should I buy Bitcoin instead of

gold well the gold Supply is going to

double every 30

years and you can't teleport gold 60

times a second and the AI is not going

to want the gold right and you can't put

gold on your iPhone right Gold's not

digital if you have a hundred million do

of and you put it into gold and you wait

hundred years you'll have $12 million

worth of gold that's why you don't want

gold if you have 100 million of Bitcoin

and you hold it 100 Years you'll still

have $100 million worth of bitcoin right

so gold is an gold is the best of the

Commodities but it's awful because it's

got a 2% inflation rate what's the

difference between 2% inflation rate and

0% inflation rate it's the difference

between living 30 years and living

forever like one is Mortal okay here's

your choice take the orange pill you

live forever take the gold pill you live

H you're half dead in 30 years you're

half dead you're going to live 7580 and

you're dead right this is Immortal Life

this is Immortal Life That's difference

between 0 and 2% gold is the greatest of

the Commodities every other commodity

inflates at 10% a year 20% a year 50% a

year they're awful Commodities are awful

stores of value but what are they good

at here's what they're good at

Commodities are ethically

sound okay that means they're an asset

without an issuer you can promote gold

or a chicken in every pot or land or

silver or you can promote soybeans or

you can tell people to keep kerosene

behind their house those are Commodities

you cannot promote a security a security

is an asset with an issuer if a senator

says God bless Apple she's promoting a

security if a senator says God bless

Bitcoin they're promoting a commodity

it's like promoting bluegrass music it's

like promoting fasting it's simple

a cultural or a technical idea so what

do you want as your long-term store of

value you want something economically

sound that means absolutely zero

inflation rate forever and nobody can

screw with that you want something

ethically sound that means an asset

without an issuer where the inventor PR

Prometheus disappeared you own fire you

know electricity you can use it the

English language you can use it math you

can use it Bitcoin you can use it

there's no company with the copyright

that charges you a royalty right it

needs to be ethically sound needs to be

a commodity right and and finally it

needs to be technically sound you know

good engineering and so you know a

building is sort of it's sort of

economically sound not as good as

Bitcoin because you got property taxes

and and entropy you know and earthquakes

happen and uh a share of Magnificent

Seven it's kind of economically sound

but it's a security and if the Chinese

decide to seize Apple's assets or if the

US seizes a Chinese company's assets you

know you've got all sorts of political

risk but Bitcoin is both the economic

economically sound asset and it's the

ethically sound asset but it's a big

Tech digital Network it means that I can

move a hundred billion dollar a million

times a second okay so what the big idea

is I can give a capital asset to 8

billion people on on their mobile phone

and 10 million computers can trade it a

million times an hour across every

jurisdiction right and so if you want to

give uh music to 8 billion people you

need digital music you can't do it with

records and at track tapes and if you

want to give digital Communications

right you want to give education to 8

billion people you need digital

education you need to give them lectures

for free for the cost of electrons and

if you want to give wealth to 8 billion

people you need digital Capital you need

to put your wealth on your iPhone and

you need to know that it will last

forever and I just ask anybody I ask you

what do you own in your life that you

think your family will still have intact

that will be valuable 300 years from now

right what what would that be right

because there's no conventional thing

there's no company that's going to last

300 years right they might not live in

New Zealand 300 years from now I could

give you 10,000 acres in Auckland and

the issue is so can you take it with you

when the government changes and they

decide to seize the assets of people

with blue eyes

right because it happens if you look at

the history of the 20th century and

you're like uh what country didn't seize

the

assets of somebody over a hundred years

right it's like you had one country the

United States that won every war and yet

that country's currency lost

99.9% of its value against scarce assets

that's the winner right the winner gives

you one10 of a percent of your wealth

all you know the rest is all just