The Virtues of Strong Money | The Saylor Series | Episode 7 (WiM007)

they're dominating because they're able

to

deliver Force

faster harder stronger smarter

so if we ask the question what is money

money is the highest form of energy that

human beings can Channel

[Music]

Bitcoin is channeling human Ingenuity

into making it better

and and every commodity is channeling

human energy into making it worse the

low brow or the the

historic colloquial term is total right

hold on for dear life and just total or

save whatever and the highbrow term

would be adopt as a treasury Reserve

essay

[Music]

hey guys so as you've learned uh by

watching the what is money show Bitcoin

is the single most important asset you

can own the world today

and so this begs the question which I'm

often asked how does one build their

Bitcoin position

and the strategy really is simple I

suggest first you decide on an initial

portfolio percentage allocation and a

Target portfolio percentage allocation

go ahead and establish the initial

position with a one-time buy and then

start dollar cost averaging towards your

target portfolio percentage and you can

also complement this by buying bitcoin

price tips to further increase that

position and reduce your cost basis and

finally I suggest to everyone to take

custody of their Bitcoin to move all of

their Bitcoin into self-sovereign

custody because again Bitcoin left on

Exchange is not Bitcoin it's a Bitcoin

IOU

and for those of you living in the U.S

there's no better choice than Swan

Bitcoin to do all of the above so Swan

lets you set up automatic recurring buys

for Bitcoin also lets you facilitate

one-time buys for buying price dips and

finally they let you do set up automatic

recurring withdrawals into Cold Storage

which is a really big deal

and all of this they provide at the

lowest fees in the business uh

approximately 0.99 per year for weekly

buys of 50 or more which is about 60 I'm

sorry 70 to 80 percent less than

coinbase by comparison

and the best part Swan is a Bitcoin

focused Education First company uh they

they publish great content on their Swan

signal live podcast uh they publish a

lot of content in their newsletter and

website and their their team is just the

absolute dream team of Bitcoin uh I

would say check out their roster it's

growing every day but but it's a super

impressive group of individuals

and so with that I would highly

recommend you check out swanbitcoin.com

backslash Breedlove you get ten dollars

and free Bitcoin for signing up

um and it lets you stack SATs with

myself and the rest of uh the swan team

as we continue the fight to restore

Freedom truth and virtue in the world

through Bitcoin all right thanks

all right guys we are back with sailor

series episode seven and today we're

going to be diving even deeper into

Bitcoin Theory and as always if you guys

haven't seen episodes one through six

that led us to this point I highly

suggest you go and check those out

um they they build a lot of foundation

that we draw upon continually as we

progress further into the series

So today we're going to discuss Bitcoin

as a monetary missile which if you

remember from episode one uh missiles

were one of the the quintessential Stone

Age Technologies so we're going to draw

analogies to that

we're also going to talk about Bitcoin

as the creature that never sleeps uh

akin to the great Kraken itself

um and why this makes it a superior form

of money uh we'll also look at the

effects of humans intervening in complex

systems and what that does

um two complex systems and the

consequences that it generates

and then finally we'll look at the some

of the reasons why Bitcoin may actually

be the sole sound store value for the

21st century uh we'll compare it to

Alternatives and draw

um reasons why it is superior across a

number of dimensions then we're going to

get into the the televian concept of via

negativa and how it relates to Bitcoin

in technology more generally finally

we get into a really interesting aspect

of Bitcoin

um not often discussed and that is the

we we look at the fanaticism of Bitcoin

maximalists as an asset as a a value

creator for this asset class itself

um and that leads us naturally into the

discussion of Bitcoin as a religion so

I'm going to go deep again today and

really excited for this one so let's

Dive In Bitcoin is a monetary technology

that we're able to deliver with much

more Force

force and the physics definition being

mass times acceleration or mass also

being equal to energy so we're able to

channel this energy in a very targeted

and specified format at a very high

speed and recalibrate almost

instantaneously to always optimize our

yield right wasn't it doesn't it sound

like a cruise missile yeah

or projectile weapon

right

and we're back we're back to the issue

of what happened to the guys without the

guns

when the guys with the gun showed up

right into the guys without the

airplanes when the guys with the

airplanes showed up

sir you're holding The High Ground the

proverbial High Ground behind the wall

of encrypted energy but you can also

send these Financial or uh I guess call

them Financial weapons in a way

out in a very targeted fashion based on

what the Market's signaling right what's

the demand for for loans or what have

you

um

yeah

yeah in theory right isn't a crypto Bank

the smartest fastest strongest Financial

entity in the world

right

right because it's going to be working

while everybody's sleeping

just like

just like YouTube and Facebook and apple

networks they're working while you're

sleeping 24 7 365.

and to a certain extent you see that

metaphorically if you just look at uh

you know a crypto exchange and you look

at the trading of Bitcoin and it's

working while you're sleeping if you try

to watch it you get exhausted

right all all traditional assets are

constructed to trade from 9 30 in the in

the morning till four in the evening

because human beings needed to watch

over them and that's about the maximum

you know endurance of a human being and

uh Bitcoin you know when you go when you

go beyond that right you're going from

like 35 hours a week

to 168 hours a week it's five times as

much people think oh it's a little bit

more it's not a little bit more

right it's it's 5x the bandwidth just

the trading and then when you consider

that it's trading

it's trading every hour in every

currency pair everywhere yeah everywhere

on on a host of exchanges this is um

extremely high bandwidth

price Discovery transparency

right the highest bandwidth price

Discovery the highest bandwidth Market

of any security

of any asset ever right I mean I mean

Bitcoin really is the perfected asset or

at least the Apex asset in uh the

financial jungle because it's the

creature that never sleeps

that's an octopus that's working

everywhere all the time I mean that the

you know the metaphor of Kraken it's a

pretty good metaphor yeah really because

it's always going and it's never

stopping

and remember

back to our previous discussion I was

saying in Jurassic Park you know and the

guy picks a fight with the little

dinosaur and then he realized there's a

hundred of those little dinosaurs

and they don't sleep

and when you pick a fight with the Swarm

and the Swarm doesn't sleep and you

sleep you realize you're gonna lose

you're you're doomed

there's that point when you realize

you're doomed because

you can't keep up with a software

creature with a million heads that is

continuously working everywhere all the

time and here's the thing you know the

thing that's working that's dominating

the market in Bitcoin all the time

it's the strongest version of the

creature in that domain not the weakest

right right

the weak parts of the herd get called

out they're being deprived of their

Capital they're being squeezed out you

know and you see it with like the mount

gox disaster you know anything that

doesn't quite work and so this asset

class is a living asset class and its

strength comes from the fact that

that uh it's being developed

it's not um it's not constrained by uh

the lowest common denominator it's

strengthened by the highest common

denominator right if there's somebody in

the world if there's if there's an

exchange in the world that can actually

do this better faster stronger and it

comes on to the Bitcoin Network

they will set the price right right and

even if you're just huddling if you're

just sitting there holding an asset

let's say I'm holding a hundred million

dollars in Bitcoin and I'm wishing it

would go up in value and then let's say

there's a million gazillion laws in the

United States that prevent people from

Trading index Futures on bitcoin

but somebody in Malta is able to do it

or somebody in Singapore is able to

launch that exchange so Singapore

launches an exchange that matches

billions of dollars of forward index

buyers or option buyers to billions of

dollars of call buyers and that attracts

tens of billions of dollars of capital

in the market because it solves the

yield curve problem let's say

hypothetically somebody on a centralized

or decentralized exchange or lightning

that resolves a yoker problem if I could

give you eight percent risk free

yield on 10-year money presumably you

can take 100 billion dollars and you can

take that money and you can short

Fiat

short the dollar go along the Bitcoin

squeeze the eight percent yield on 100

billion dollars make yourself eight

billion dollars a year

if you can figure out how to do that in

Singapore

you set up in Singapore you do it in

Singapore what happens to the price of

Bitcoin

goes up

what happened to the hodler sitting in

Schenectady New York that never did

anything that didn't touch it that

doesn't know about it that doesn't

understand it with their little one

Bitcoin has been strengthened

the network is getting stronger based on

the highest common denominator anybody

in the world that with a better idea

that plugs in the network is lifting

everybody

and that's totally different

than a conventional centralized

traditional structure where one

regulator might create one set of rules

that can strain and hobble

yeah right thank you buddy the asymmetry

has been inverted right from the Great

Wall of China or if there's one failure

at any point the whole thing's

compromised but now it's you inverted

that asymmetry such that if there's one

benefit it benefits everyone

and that's what it's like when you got a

swarm if if the herd is attacked by a

predator and one of the creatures

figures out how to kill the predator

couldn't figure it out die the ones that

do figure out live they procreate pretty

soon they can all kill the Predator

right they all have got immunity

right that's herd immunity whatever that

might be

and um and that's the beauty of Bitcoin

you know I I had this uh I had this

tweet because you know I put it out

there I said

you know Lions get tired of

using the antelope

Lions complain to the ranger the ranger

hobbles the antelope

Lions get fat dumb and happy Antelope

all die

Lions all die

range of blames on the weather

right

and that is a metaphor for a lot of

stuff

but generally it's it's a metaphor for

how you uh how you destroy a crypto

Network

by trying to make transaction fees lower

it's like someone complained about

transaction fees so we try to change

everything to drive the transaction fees

down because somehow it's abomination in

the eyes of God that people get charged

for transactions

the antelope ran too fast not fairs

brought them down the transaction fees

were too high not fair make them lower

we'll hobble them for you okay it's also

a metaphor for interest rates

interest rates are too high I can't

afford a loan make them go down

it's also a metaphor for competition my

competitor goes too fast they're making

it too difficult slow them down make the

foreigners stop that make somebody do

something right it's it's somebody

trying to regulate or manage something

because they think it's a problem

but at the end of the day

you're messing with Mother Nature right

you're in a war with nature it's not

going to end well at the end of the day

Lazy Lion should die

and slow Antelope get eaten

and fast strong healthy Antelope

procreate and fast strong healthy Lions

feed and the Lions get better and the

antelope get better and they live in an

ecosystem and if you remove the predator

you know all sorts of crazy bad things

happen you know these are off the

balance

this goes

all the way back to your original point

that there's no fair fight in the world

right and that when human intervention

tries to make that fight more fair

the intervention into a complex system

throws off all these unintended

consequences and I think that is one of

the things that's gotten us into the

situation we're in today with low and

negative interest rates right we've

constantly trying to introduce an

economic analgesic to paper over the

business cycle or paper over losses

um and we're just we've distorted the

natural price Discovery function of the

market and so now we're in this we're in

these totally asinine times with uh you

know stock market at all-time high and

40 million people unemployed so I think

the and this is one of taleb's main

themes is human beings have to strive to

not intervene with Mother Nature like if

Mother Nature has been doing executing a

certain strategy for a long time we have

to assume that it's being done for a

reason no matter what science tells us

you know it interest rate is the time

value of money but if but if interest

rate is the time value of money it's the

time value of energy

and if it's the time value of energy

interest rate

is the value of time and and maybe if we

come back to thermodynamics the rule of

thermodynamics is time cannot go

backwards

entropy is it time must move forward

try to drive interest rates to zero or

negative is a war on time

you're trying to make time go backwards

you're trying to make water flow uphill

you're trying to reverse gravity you're

trying to reverse the laws of

thermodynamics

it's it's me saying to you Robert you

know will you give me everything that

you own

give it to me

you go without I'm going to keep it

and when you die

I'm going to give a third of it back to

your heirs

right and and so

the only way you would do that is if you

thought the future of your life had

negative value

right like if you knew you were going to

be a Serial Ax Murderer killer and you

knew it in advance and you thought you

know I should be deprived of the future

of my life because I'm really a

liability to

Humanity Maybe

but if you actually thought that the

future had any value

you couldn't make that trade right no

rational person would say I'm going to

give you everything I have in return for

half of it back when I'm dead right it's

so moronic right it's just insane and so

when I'm trying to drive the interest

rate

to zero or negative

I'm actually trying to reverse time and

make it run backwards I'm first trying

to stop it and I'm trying to make it run

backwards I'm trying to reverse entropy

I'm trying to put the genie back in the

bottle

thermodynamics the laws of physics the

laws of humanity they all say it can't

be done

right and and only something you know

catastrophic will ensue let me ask you

so this is interesting we have a legacy

Financial system that's trying to grind

against or move countervailing to the

laws of thermodynamics or the

thermodynamic Arrow of time and here we

have this new system introduced in the

form of Bitcoin that more that nearly

perfectly mirrors the laws of

thermodynamics it aligns itself with the

arrow of time and the thermodynamic

Arrow of time

it seems almost serendipitous that

Bitcoin is released at this time when

the system is starting to come apart in

this decade do you think this is almost

like an autoimmune response by the the

global human hive mind

[Music]

because

you know look at what Satoshi put in the

Genesis block

right

you know it's pretty clear

that Satoshi was uh was troubled

right was was inspired

at you know antagonized irritated

enough right to do this humans solve

problems right and and so if I if I

introduce a pathogen into you your body

right your body reacts living creatures

react to protect themselves

so if someone is sensitive

sensitive to a given issue and Satoshi

was sensitive to financial integrity

right and obviously he had some decent

sensitivity and awareness of Austrian

economics and and The Perils of

inflation and and the

um moral hazard of Bank bailout so that

was a sensitive

individual that tapped into a bunch of

other sensitive nodes individuals who

shared that

and it's almost like uh I picked I I

pricked you with a needle and I

introduced this little pathogen and then

you swallow that and there was some

inflammation and the inflammation you

know grew and festered and some

antibodies built an organism built and

the organism got bigger and it got

bigger and it got bigger and then it got

fed if

if we had zero inflation of if the U.S

dollar monetary Supply in expanded by

zero percent for the past decade

how much passion would there be in the

Bitcoin Community compared to the amount

of passion there is today

be much less

so so it's a we're back to this issue

but it's a great technology

and um

yeah it's inevitable what you know we're

back to this issue of of Zoom was

inevitable

you know uh

YouTube was inevitable

virtual uh virtual business models were

Bitcoin was inevitable but it sure did

get accelerated by certain things that

happened Bitcoin had 10 years of um of I

would say a seven percent forcing

function with the dollar and it got

Goose a bit harder in with Argentina and

and other developing world countries

you know the anxiety of Syria and the

anxiety of Iraq and the anxiety in

Africa and the anxiety in South America

and the like so those stressors and the

issues that that boosted and the

currency Wars pushed a bit harder

and then I think the pandemic crisis let

it on fire I could say Robert like

there's no way I'm talking to you if

there's no pandemic that's right like

like uh so but I I don't

I don't think for a second that Bitcoin

wouldn't be successful without me and

and I don't think that it's anybody

going to stop it but I do think there's

an avalanche of of uh energy

of individuals and corporations that got

inspired and and driven you know uh into

this ecosystem because of the pandemic

doctor you know again back to war wars

caused Paradigm shifts

and this year

there's a currency War

and and that's a war on money as a store

of value right and and that war on money

as a store of value creates massive

dislocations in the bond market and the

equity market and there are consequences

to everything

and uh and ultimately Bitcoin is a

platform

an anti-fragile fragile but scalable

serving as a store of value

and so the best possible circumstance

would be if the entire world plunged

into a war where a value is dissipating

in every currency everywhere at a rapid

rate

and I think that describes what we have

today I think it's exactly correct and

it's almost as if the Mongols breached

the Great Wall of China right the

Mongols being

um central banks that are basically

robbing value from currency and it's

it's giving people more of an impetus to

evaluate Alternatives and to for those

that see it to retreat behind the wall

of encrypted energy right you have to

defend your life force your energy your

money

um from confiscation and the most

prevalent form of confiscation in the

world today is inflation

but I guess that's what makes it takes

us our next subject which is Bitcoin is

a store of value

right Bitcoin Bitcoin is is an

incredible store of value I think that's

it's primary use case so it's it's it's

it's killer killer value proposition now

and probably for the next decade and and

maybe forever but but

the entire world's looking for a store

of value right now and

you have to look across 250 trillion

dollars in assets so if if we think that

asset inflation is running north of 10

and I think it is I think it's pretty

pretty clear it is

and if you have capital

you have to choose between bonds you

know 80

trillion dollars in sovereign debt or

corporate debt or Municipal debt

or if or or mortgage-backed Securities

or you got to choose equities Tech

Equity conventional Equity or you got to

go to precious metals or you go to real

property real estate property and

when you look at all those things the

problem is half of all real estate is

impaired because of the because of the

political response to covid

uh and uh it's not likely that's going

to change in the next 10 years we've

probably got

10 years of of uh uncertainty about real

estate assets especially commercial real

estate assets

the other challenge is with real estate

is

the taxes on it it's it's liquid

immobile

and highly taxed generally real estate

is taxed annually

everywhere right it's just a question of

whether it's 20 basis points or 200

basis points right so that that makes

real estate a challenging store of value

and that takes you to bonds

and bonds bonds have worked as a store

of value when interest rates keep going

lower you can see that everybody's been

on the bond train and benefiting from it

they're screaming as loud as they can

they want negative interest rates

because they're like I just that the

secret to success is lower the interest

rates 50 basis points a year or 100

basis points a year and it's a no lose

proposition for them

but at this point it's getting kind of

ridiculous silly because when interest

rates go negative already money

everybody takes their money out of the

bank it creates Bank runs all the bank

systems break it's it's

kind of a morally bankrupt

I mean a lot of people

they don't really understand that uh

that they're being abused at two percent

instead of five percent

but pretty much everybody can figure out

that when you're being billed one

percent of the money you have abused

yeah and again if you look at money as

that insurance policy on uncertainty all

of a sudden that policy has negative

value like it does it's it's just

asinine it doesn't make any economic

sense

yeah so

that doesn't work and so what does that

take us uh it takes us to equity

we got an equity bubble it's a very

crowded trade but the real issue with

Equity is a store of value is that is

that uh the revenues get taxed the sales

tax the cash flows get taxed as income

tax

the expenses uh the co the cost

structure gets taxed as employee and

payroll tax

then then the trade gets taxed as a

tariff

then you have the existential threat or

regulatory risk of onerous regulations

you pick up the paper and see maybe

Australia is going to build Google every

time they link to a newspaper article

or and then if Google doesn't link the

newspaper articles they're going to get

fined for not linking the newspaper

articles and you know you as these

things become more powerful they become

regulated utilities and and politicians

start to think that they can and should

be regulated and you know maybe with

good cause if if there's only one

provider of information anywhere in the

country then it definitely becomes

political issue so

that's a challenge with equities

eventually

they might work for two three four years

but but they're valued as a multiple

cash flows

so if all of the liquidity in the

civilization gets squeezed out of debt

right when interest gets to zero the

government the government and the FED

owns all the debt okay they bought me

out

now I got to put it in something else so

I jump on Equity so now equity's double

but now the pdes double or triple and

the revenue multiples triple

if uh what's the value of an equity the

value of equity should in theory be you

know the tangible assets on the balance

sheet plus the sum of the discounted

cash flows

and so you people are using equities as

store of value today

right in fact you can make the argument

that equities are the most popular store

of value for for the majority you know

with the Robin Hood trading they're all

buying Apple Amazon Facebook NASDAQ

spiders everybody even though

even though nobody thinks revenues are

going up this year nobody thinks

earnings are going up this year but

Equity value is a double this year right

yeah well that means that they're

getting riskier

so if you contrast Bitcoin to equity the

problem is

if if the price of an equity goes up by

a factor of 10 you've got more risk

because it's delaminating from its

underlying cash flows and its

fundamentals because it it is a

centralized regulated entity and the

only way that the cash flows are going

to grow uh into that value is they keep

raising the price and if they're

Monopoly and they raise the price The

Regulators will react if they don't

raise the price they can't grow into the

multiple

and uh and so you're kind of a chicken

in the egg thing right at the price and

if there's any competition and their

cash flows deteriorate eventually you're

trading at 200

to you know to one or or 200 P to E

H and uh and then any degree of

disappointment causes massive volatility

right

um they don't

uh how are they different than Bitcoin

well bitcoin's value proposition is the

liquidity it is the store of value that

is it it's if you're going to function

as money you want to be a single-celled

organism this simple like the algae of

the Eagles the base layer of the

ecosystem is plankton or or bacteria or

single cells you don't want to be a

vertebrate

and and these companies are vertebrates

where the brain and a backbone and that

means for example

WeChat or or Tick Tock it has a

headquarters and if it's in the wrong

country it gets its head chopped off

right you know and you know apple and

Facebook they're subject to a certain

Court a certain country's jurisdiction

so that means they're foreign or

somewhere else they're vertebrates if

you're a vertebrate

I can kill you with a needle right like

a human being I can figure out how to

kill right there's a heart I take a

needle I poke there you're gone and very

fragile hard to do that with a swarm of

hornets

hard to do that with all the plankton in

the ocean

it's very difficult to deal with it with

a an amorphous decentralized

invertebrate of some sort so if you want

to store a value

you don't want a company that's valued

based upon the ability to engineer hyper

complicated products that have to keep

getting upgraded you want something

which is simple

they can just keep being simple what

that this is again where some of the

crypto enthusiasts they keep wanting to

Tinker with a you know a better

blockchain a better crypto a better they

you know they never saw an upgrade they

didn't like so they just want to keep

revving it every year this is like it's

the iPhone version 37. right there's a

fundamental difference which is if

there's a bug an iPhone version 37

everybody in the world's heart doesn't

stop right I think this this analogy

you're using with with the Simplicity of

plankton

right being the base layer for the

ecosystem is apt

because and I

um I want to say Plankton makes up the

majority of the biomass on the planet by

like a pretty substantial margin because

it's so simple and it's so efficient at

converting solar energy into bio

biological energy right and then it feed

it is the base layer for this

multiplicity of layered ecosystem that

we have in the world and another thing I

think is interesting is you make a great

point that equities are becoming more

risky as the increase in price because

they're they're delaminating from their

valuation fundamentals as you said and

bitcoin's the opposite right actually

the more valuable Bitcoin is the more

secure its Network the greater the

liquidity

um the more resistant it is to attack so

it's it's a very interesting counter

trade to to equities as a store of value

and of course if you have an individual

entity with an individual headquarters

and a CEO as it gets bigger it becomes a

bigger Target mm-hmm

but maybe maybe everybody in your home

country loves you but what about

everybody in every other country right

does you know so

you don't want to head

and you don't want to be a Target

and you don't want to be valued based on

cash flows if you're going to be money

like what it's they're the right but

they're the right creature to be uh

building a device or maybe creating an

exchange or creating an application

because there

I want um I want the software to run a

billion times faster and so it's okay to

have one company write software

right the question is I wanted to run a

billion times faster but do I need it to

last for a thousand years

and the answer is I can throw my phone

away and Western Civilization will not

end if I lose my phone or if you screw

up my phone right it will not end if I

put all the energy in western

civilization or that's prejudicial if I

put all the energy into civilization

or of civilization into a network a

crypto Network

I can't afford for someone to like ship

a buggy release

so so and again what people forget is

if I put a billion dollars in the

Bitcoin

on January 1st 2021 and I don't touch it

for a hundred years

the thing is working

it's you know truly insanely great

technology

is um is uh

okay we're back to Nicholas taleb is

haunting our thoughts via negativa right

ah yes God by taking away

insanely great technology is when it

does a thing without you doing a thing

right but you know a junior technologist

they create gadgets I have um an app I

have a mobile application

it has 150 features and 150 buttons and

if you click and there's a billion

different things it can do depending

upon the combination of the buttons and

the features you click on okay that's

one thing how about another mobile app

you download the mobile app and

everywhere you walk on earth it kills

all your enemies and and gives you

infinite food and water and protection

and plays whatever music you wanted to

hear around you without you touching it

hands-free

right

you know if I walk around and someone

walks behind me and they do everything I

want you know before I ask them to do it

without me opening my mouth isn't that a

heck of a lot better

than a gadgety thing with features yeah

it's higher utility right yeah I think

it's saying exubery the Design's not

done it's not a perfect design until

there's nothing left to remove and so if

I told you

take all your money put into Bitcoin

and then you'll be rich and happy and

prosperous for all of eternity without

doing a single transaction

that's a lot better idea right that's a

great point I think you need more

features and more gadgety things I just

need it to always work right right right

and just one of these is vapor around me

you're right absolutely I just to give

the listeners uh a little bit of context

on Via negativa for those who haven't uh

read to lab

is canonical examples in his book The

Black Swan where you can see as many

white swans as you want

but you can never prove by virtue of

that evidence that all swans are white

but with a single sighting of a Black

Swan you have disproven that all swans

are white so the the moral of the the

story is that disconfirmation is more

rigorous than confirmation

right and I think that's getting to your

point here is that

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it's

getting stronger by taking away right

your your factual base on what you're

building your premise and strategy in

the world is strengthened by by

disconfirmation more so than it is

confirmation

all right and I'll give you another

example that

we see all the time with Google you go

into Google uh you you ask the wrong

question

and misspell it and it gives you the

right answer

that's that's a truly Great Piece of

software you asked the wrong question

and it gives you the right answer

because it knows what question you

should ask it knows how you should have

spelled it and it said we're going to

answer this question for you instead

because the odds that you really wanted

to know you know uh this question

answered is 99 million to one the odds

that you really were asking a unique

question that seems foolish and

misspelling a popular name while you're

asking that's one in a billion so if you

really wanted to ask the wrong question

the wrong way you tried twice

but 99.999 of the time

they give you the right answer to the

wrong question

and uh and

they do it because they build like this

uh very false tolerant Common Sense

rational interface

and uh

so that back to the store of value right

Bitcoin is

it's an ideal store of value because

thank you

it's

got it's got the ability to convey

your energy

not across 10 000 miles but across 10

000 days

30 years in the future

100 years in the future most people when

they're investing in assets they're

taking this very short-term view of like

the next month the next year the next

two years and I find that if if you're

looking at a three-year time frame

everything is very very noisy and

complicated and there's all these

debates

but if you were going to end the debates

go at 100 years

I just take a hundred million dollars

and go through the exercise of giving it

to someone your your heirs heirs air in

a hundred years

and then all of a sudden all of the all

this noise drops away can I put it in

real estate no it'll be taxed out of

existence at 100 years can I put it in

Gold no 98 of it'll be gone if 100 isn't

gone in 100 years because it'll be mine

today can I put it in Fiat no it's going

to be inflated to death can I can I

invest it in a company no name one

company that's around today that was

around 100 years ago that hasn't been

diluted recapitalized

Etc

can I put it in a stock index

well you're trusting a human being to

rebalance the index

you know over and over again what stock

index do you trust for the next hundred

years and by the way it's it's got

counterparty risk at the nation-state

level

Nation might not be there and uh

90 didn't make it so

what are you left with

and and the truth is when you when you

just do that thought experiment it's

pretty obvious

you put it in uh

you would put it in a crypto Network and

a decentralized proof of work network if

the adherence the maximalist

were fanatic zealots about protecting

the Integrity of the network against

meddlers who would screw it up

if if the network is supported by those

with a religious conviction to the

network

such that you could imagine a hundred

years from now there will still be

people protecting the network

but the phrase is keepers of the flame

right every great religion every great

institution has keepers of the flame and

there must be passion do you believe in

your religion do you do you believe

strong enough that you'll flee

persecution to to continue to practice

it right the United States was built on

the foundation the separation of of

church and state and it's a it's a

pretty important and interesting

metaphor people came here because they

could practice their religion

that's why they came here and they came

here because their religion was uh above

their government

they were not they would not sacrifice

whatever it is they believed in

if you look at every institution that

lasts more than 100 years name them

Harvard University Cambridge Oxford

the Catholic Church

Islamic sex certain the Jewish faith

but there's not that many it's like

there's churches or religious sects and

then there's some educational

institutions and I and I see the

educational institutions being shaken at

their core this year right I mean

literally you could have said for 500

years you know

Ivy Leagues Elite universities there are

stalwart institutions

they have lost a huge amount of

credibility this year when you send all

your all of your students home and you

close the campus and people are studying

virtually people's affiliation to the to

the bricks and mortar of the institution

has been dramatically weakened and

unless they morph into a virtual

Institution

the virtual institutions by the way have

dramatically strengthened right like

your affiliation with YouTube

and Facebook and Apple TV

and Bitcoin

has dramatically strengthened and square

cash if it's virtual and your

affiliation with the bricks and mortar

physical uh institution that has been

weakened and those that will survive

have dematerialized and virtualized

right and they and they they've learned

uh they've learned how to project their

ethos

in cyberspace

so yeah back to store value

you need people

human beings Flesh and Blood people that

are going to uh that are going to keep

the flame and the flame a Bitcoin is the

node and the mining rig

it's like imagine we're getting into

Bitcoin as religion or as Faith now but

imagine uh

a thousand years ago I want to keep a

religion alive I have an altar in my

home I have a check every wealthy person

had a chapel in their home

and if you look at religions right you

go to the Far East uh there are altars

and Buddhist Shinto other Fates

so the idea of an altar or a shrine

or

um a cathedral or a church these are

structures where people go to worship

and the worshiping is the feeding of the

flame and oftentimes during the

worshiping they're tithing and they're

channeling 10 percent of their money

as energy

into these religions in order to keep

them relevant

if you look at science if you look at

fantasy fiction

and fantasy where they have gods

the the strength of the God is a

function of the devoutness of the

worshipers of the followers

such and such was worshiped as the god

of the god of the forest and they are

worshiped as the god of the forest and

all of their adherents all their

acolytes are feeding energy to the god

of the force and when they're no longer

worshiped

their energy goes away

right

if you uh if you lose your faithful if

they won't feed you

with the fire of Truth with the energy

that you need the your efficacy Falls

and you die and so how do you feed a

fire right if it's a physical fire you

have to throw wood on the fire how do

you feed a religion you have to tithe

you have to you know the Catholic Church