FYM News: Michael Saylor Explains Bitcoin on Tucker Carlson Today - full interview (720p)

[Music]

welcome to tucker carlson today if

you're like most people you're perfectly

aware there's something called

bitcoin which is something called a

cryptocurrency may have been skeptical

of it maybe even dismissive but as the

years have passed it's become obvious to

everyone that it's not going away and

it's probably going to be a central

feature of our future is this a good

thing is it a bad thing can you benefit

from it and by the way what is it

exactly you may have been afraid to ask

that question so we've searched long and

hard for about five years actually to

find someone who can answer all of those

questions in a credible way that

non-experts can understand we think

we've found one he is michael saylor you

probably recognize he's an entrepreneur

of course co-founder and ceo of

microstrategy he is a huge

investor in bitcoin specifically and we

think

maybe despite that or because of it or

both

the man to ask so he joins us now

michael said we're really happy to have

you here thank you very much thanks for

having me tucker so i basically summed

up my own position as clearly as i

possibly could i didn't know what to

make of cryptocurrency i don't

understand it

i made fun of it it's clearly not going

away it's clearly a really big deal

so let's just start at the beginning if

you don't mind explaining what is it

okay what is bitcoin bitcoin is the

first engineered monetary system in the

history of the human race

full stop

so now to explain it the first question

is what's money

the second question is what's the

problem

and the third question is what's the

solution right

bitcoin is the solution now go back to

the beginning what is money well an

economy consists of good services and

property you know i want you to do

something for me i want that product i

want you to manufacture something for me

i want that house i want that land

that's half the economy

now the question is how do i send 37

horses to you

and then how do we keep the books

balanced so you have to send me back

money

money is social

economic

energy it is it is money is monetary

energy or it's it's the energy the

backhaul energy that we use to trade

with if i can send you 10 bushels of

corn and you can send me money equal to

10 bushels of corn then we can trade

with each other so in the history of the

world human beings have tried different

monies we've used sea shells we use the

giant stone coin or the yap people we

use tobacco bales in uh in pre and

colonial america we've used copper coins

silver coins we've used stone coins we

use glass beads in africa these are all

types of money eventually we got to got

to settle on gold and gold coins as

money but gold was never fast enough as

money how do you move

10 tons of gold from here to there

so ultimately people use ledgers

and those ledgers were issued by a

merchant or they were issued by a mayor

or they're issued by an emperor and you

know you can go back 5000 years and you

can find sumerian tablets in clay where

they've etched in like 37

you know bushels of oats in return for

something these were the ledgers

so

uh money

is is that

that shared ledger of who owes what to

whom

and um and and a lot of times the money

is a token like a glass b but the

problem with the glass bead is if the

africans use the glass bead and the

europeans show up and they can

manufacture a million glass beads the

europeans dump a million glass beads on

the africans the africans lose their

homes and their livestock and all their

wealth and they're impoverished so if

you have weak money and someone else has

strong money if they can manufacture the

money like

in the pacific islands they use stone

coins some europeans showed up in a ship

and he realized that stone coins are

rare on one island but they're very

plentiful big stones on another on he

sailed to the other island picked up the

stones brought them back to the first

island and slaved everybody on the

island

i was like

problem so so the problem with money is

how do we keep track

in a fair distribution of who owns a

claim to what if there's

if there's a hundred million dollars

worth of capital in the economy of

products and property and and and

corporations and the like you have to

have a hundred million dollars of money

now

if i issue a hundred million dollars of

currency

it equals all the stuff in the economy

now if i start to inflate the currency

and i issue another 10 million dollars

yes

now i've taken 10 percent of the economy

and given it to my friend that's the

inflation rate if i keep inflating the

currency if i double the amount of

currency

but the amount of stuff in the economy

is constant

well then the price of everything that's

scarce and desirable doubles

yes okay if it's not scarce and

desirable it won't go up but if there's

a hundred things and there's 10 times as

much money it stands the reason that the

things cost 10 times as much

so

so money is is economic energy

the problem is inflation

because in the history of the world

we have inflation when uh when the

romans created gold coins they start

with a certain amount of gold and they

would cut the they would debase the

currency right they would cut the amount

of gold or cut the amount of silver in

the coin and when they cut it to a small

enough level no one would take the coin

anymore so the mercenaries don't want

the coin the emperor can't pay the

mercenaries the empire topples

if i just issue you paper

you know whatever the paper might be and

then i triple the supply of the paper

eventually the currency collapses

so the problem with currencies in the

history of ta of time is the trust in

the issuer

you're trusting an individual

right you're either trusting a bank or a

jp morgan or you're trusting a family

the rothschilds

or you're trusting a king

or prince

or you're trusting the mayor or you're

trusting a government

now if we look at the modern era

economists like seyfadina moos who wrote

the bitcoin standard he estimates that

the inflation rate in the modern era

dollar weighted is 14 percent

okay think about that

for the last decade on average uh all in

the world we've been inflating the

currency by 14 per year

now it happens that that's equal to the

rate at which the s p 500 index is going

up 14 on average a year for 10 years

running

um

that the

what's the issue well

what is inflation it's not really well

understood some people think it's

cpi

cpi is the rate at which a market basket

of consumer goods is going up but the

government gets to pick the basket i've

noticed okay if i pick things like

domino's pizza and streaming youtube

videos they will never go up in price i

can actually

i can actually adjust the basket so i

just pick things that don't go up in

price

the shape the case shiller index is up

27 percent year-over-year you know in

july so the price of that average

single-family homes up 27

homes in canada up 15 percent the s p

index is up 34 percent this year over 12

months

what's the inflation rate if you wanted

to buy a basket of desirable stocks

the inflation rate is the s p index

so

i can calculate any inflation rate i

want inflation is a vector if if i want

to be rich then i need to buy scarce

desirable assets so my inflation rates

the rate at which picassos and leonardo

da vinci paintings and stocks and and uh

property in new york city is going up in

price or a house in the hamptons that's

a high inflation rate

if i want to be a consumer and live in

my parents basement

and order domino's pizza and take uber's

and watch netflix and stream youtube the

inflation rate will be the cpi it'll be

very low

so

you can have any inflation rate you want

as a practical matter the best inflation

rate for an investor

or for anybody that wants to stay

wealthy or be wealthy if you're

concerned about maintaining your

economic purchasing power

it's the monetary inflation rate the

rate at which the supply of money is

expanding

the supply of money expanded maybe 10

percent for a decade before covet and

the s p went up 10 a year

you know we know the money supply

expanded 30 percent postcovid the s p is

up 34

the feds stepped on uh on the money

printer the same with the eu central

bank

in the western world in the strongest

countries we see

we see the money supply expanding 20 25

or more per year the currency

is collapsing it's losing it's losing

its values being devalued

in in uh weaker countries

go to argentina the official

inflation rates 45 the unofficial

inflation rates 85 percent

go to venezuela

the inflation rate i mean the currencies

collapsed 98 99 in a year uh same in

lebanon 90

currency collapse in a year so

what you have right now going on in the

world is currency collapse which we call

inflation

and

the mainstream view of inflation is it's

only cpi and sometimes it's pce it's

it's an index of things not including

the highly volatile food and energy

right but in but in what universe can

you live without food and energy exactly

but but it's not really good like common

sense says

if if everybody tells me inflation rates

two percent or five percent but the

houses are costing 20 more 15 percent

more

and everything

if you talk to anybody that manufactures

anything they'll say that the prices are

up 20 25 year-over-year

so how is it i'm supposed to actually

buy something how do you buy a share of

stock that went up 34 a year when you

got a cpi adjustment of 2 or 5

so it sounds like the people causing the

inflation are lying about the inflation

classically

i i just i just first of all

if you define inflation as the cpi

you're using simple arithmetic to

describe the economy

you can know you can't define you can't

describe the economy and model it with

simple arithmetic any more than you

could describe fluid dynamics or

aerodynamics with simple arithmetic

right the fluid is flowing around the

airfoil you have to

multi-in-dimensional you know algebra

and vector calculus to describe a

complicated phenomena

the economy is a complicated phenomena

another way to say it is the price of

everything is is varying everywhere at

different rates all the time right right

common sense says the price of housing

in the hamptons is going up at a

different rate than the price of land in

kansas

and

the price will be going and the price in

a certain jurisdiction for a certain use

subject to certain regulations will go

up at a different rate than another

jurisdiction for another use

so

the problem is inflation

inflation's a phenomena whereby

a government authority prints more

currency

right and why do they print more

currency because if i want to pay a

trillion dollar bill i either have to

tax you a trillion dollars or i have to

print a trillion dollars of money turns

out that it's a lot easier to print

money than it is to tax people and so

it's either inflation or taxation

throughout the history of the world from

roman emperors before

ev every single coinage system every

monetary system ever established

collapsed because of inflation if you

look at the history of of the sumerian

states you know the the persian states

the greek states the romans states

middle east

look at all the all the renaissance

italian states

look at every king of england

if you just go forward you find every

one of these currencies

started by issuing i issue a coin with

this much gold in it and then i cut it

and i cut it and then i go to silver and

then i go to copper and then i coat it

with

some brass or some nickel you remember

what happened in the u.s where we used

to actually have silver quarters yeah

and now we don't because the silver was

more valuable than the quarter yes

why right we're debasing the currency

right so the problem is inflation

and inflation just to be really clear

what you just said which is fascinating

is caused by expanding the money supply

yes

simply put

you live in a town there's a hundred

nice houses

there's a million dollars in the money

supply the mayor prints another million

dollars distributed to the citizens

what's the price of the house do right

and so and you're so you're saying that

inflation is always the cause of the

collapse of the currency and the

collapse the currency sounds to me like

it's the cause of the collapse of the

civilization

yep

because if

if you look at all these wars right how

long does a war go on it go

in world war one every single nation

went off the gold standard within a week

of the declaration of world war one

the germans the french the the brits the

americans we printed money

uh the money got debased there was

rampant inflation eventually after four

years you can print money for about four

years before you collapse the currency

and then you don't have any means to

fight the war the germans sued for peace

because they ran out of money after four

years okay world war ii we ran out of

money in four years vietnam

you know we paid for it with inflation

eventually um eventually nixon had to go

off the gold standard because they'd

printed so much money they couldn't

redeem the gold they defaulted on it we

went to the fiat standard and we just

begin to print more money

you'll find that throughout history and

of course put yourself into the position

of the roman emperor or

the city mayor or the noble

you you have a monopoly on the coinage

you need to pay the army you can either

go to everybody that lives in your

nation and take half their stuff

or you can just print twice as many

coins but what i thought the whole idea

behind modern monetary theory was as

long as you have the world's reserve

currency inflation isn't a threat to you

well

if you print

how would you say this if there's a

certain amount of goods and services and

capital in the economy and you just keep

printing money

you're not

creating any more

capital in the economy you're not

creating any more products you're not

creating any more buildings you're not

creating any more services all you're

doing is doubling and tripling the

amount of currency so

if i just gave everybody in the united

states a billion dollars

and everybody went out to buy a ferrari

right would there be 250 million

ferraris like

i i can i can print the money right like

look at venezuela look at zimbabwe they

can print the money you can give someone

a trillion dollar note

but that doesn't create more stuff

right you're just creating paper

so ultimately

that in that inflation it works only to

an extent if you can export it and what

you're doing is you're not

you're not creating anything what you're

doing is you're redistributing wealth

like if there's ten billion dollars in

the economy and there's this much stuff

and i give a billion dollars to you

you now get 10 of the stuff from

somebody else which means that everybody

else lost 10 percent of their stuff

right

as i inflate the economy i'm actually

or inflate the currency i'm actually

redistributing wealth from those that uh

store their life savings in currency or

currency derivatives

in cash if you have if you had a million

dollars in the bank 12 months ago

today it buys you 34 percent less

right

the s p is up 34 you have a million

dollars if you put it in the stock

market you've got 1.34 million dollars

if you hold it in cash you've got a

million dollars if you go to buy a stock

now it costs you 34 more to buy the

stock if you go to buy a house in the

hamptons it's 40 more to buy the house

in the hamptons you know if you

other things are going up in price your

cash is fixed

so it turns out that

that um you've got some people that

don't have net cash positions if you're

if you're a sophisticated investor and

you're wealthy

all of your assets are in property you

have buildings you have companies you

have you have real estate you have

collectibles you have

sports franchises right your things if

you're

middle class working class you're

working for cash

and whatever cash you've got right

is either sitting in the bank or uh you

don't have a lot of net cash so

the real significance here is

if the dollar loses 20 percent of its

purchasing power each year

then

the value of your salary is

deteriorating by 20 a year it's not

falling at the rate of cpi inflation

it's falling at the rate of monetary

inflation

the road to serfdom is working

exponentially harder for a currency

growing exponentially weaker okay that's

the problem you're a dentist you're

right you're you're generating five

percent more a year for a decade i'm

inflating the money supply at 20 a year

for a decade

if you save every penny in 10 years

you'll be able to buy one quarter of

what you could have bought today because

the price of housing is going up at 20

percent a year and you're just not ever

going to catch up right because

you're uh you're getting paid the

currency

the only way you can actually stay ahead

is to grow your cash flows faster than

the rate of monetary inflation and

that's why the rate of expansion of the

money supply is so critical and that

that there's not even a word for that

other than cost of capital the best

surrogate for monetary inflation in my

opinion is the s p index a distributed

market basket of scarce desirable

products

so

money is energy

the problem is inflation

if if we're inflating at 10 a year you

know you've got 10 pints of blood in

your body will you go to give blood i

take a pint out when i take a pint of

blood out of your body you lose the red

blood platelets anybody common sense

knows you run the boston marathon the

next day you got a problem you can't

perform as an athlete it takes about

four to six weeks to replace the red

blood cells so when i take a pint of

blood you're not going to be able to

perform for a month to two probably two

months later

now imagine if i actually took a pint of

your blood every month

forever

that's inflation so i'm running an

economy i'm the king

yeah you have a dojo and i send someone

from the government and we just take a

pint of blood from every one of your

fighters and then next month we do it

again and next month we do it again and

next month we do it again

now

what do you expect your ac your athletic

performance to be

in decline yeah yeah that's the problem

of an of the currency which is

collapsing but let me tell you that's

ten percent

venezuela is not ten percent zimbabwe is

not ten percent

the argentine peso was one peso to the

dollar twenty years ago and it's like

it's pushing toward 200 pesos to the

dollar today they've lost 95 98 99

percent

in a hyper-inflating economy or rapidly

inflating economy you're not losing 10

percent of your economic value a year

you're losing 20 to 25 to 30 to 40. so

that's like i send some dude to the dojo

to bleed you every week

and then at some point i'm sending

someone to bleed you every day and

that's the weimar republic right

hyperinflation

when

not another metaphor the currency

is to the economy

what your blood is to your body

and economic energy or money is to the

currency what oxygen is to your blood

so

common sense says if i keep sucking the

oxygen out of the room if i suck the

oxygen out of the room you're going to

either suffocate or freeze to death

and if i keep sucking the economic

energy out of the currency the economy

collapses in the extreme

you get ripped back to stone age border

right when the money doesn't work

anymore i have to trade you cigarettes

for bullets right

and the problem with that is

is the economy becomes a million times

less efficient right if you don't have

money

now how many countries in the world have

a collapsed currency

66 are dollarized there's 180 about

countries there's 130 floating

currencies

all of them are weaker than the dollar

the us dollar is the world's reserve

currency the u.s dollar is expanding it

was expanding 10 percent a year for a

decade now expanding at 14 a year it

expanded 34 over the past 12 months the

dollar is weakening

okay it's like the auctions getting

sucked out of the room so tucker if i

told you the auction is getting sucked

out of the room and there's an oxygen

mask drops out of the ceiling over there

what would you do

run for it yeah put the auction mask on

bitcoin is the oxygen mask

the idea of bitcoin let's let's move to

the third place and say you've made the

most compelling case i've ever heard for

the need for something like bitcoin

so you're saying just to make sure that

everyone's following this the whole

point of bitcoin

is to escape

the inflation vortex that has consumed

all these previous empires

the point of bitcoin is to fix the money

and money is energy and energy is life

and if i keep sucking the energy out of

the economy i'm sucking the oxygen out

of your system either under the best

case you perform poorly under the worst

case i suffocate you to death or freeze

you to death that's the problem that's

why that's why empires collapse

that's why economies collapse and the

problem it's not just a problem for an

individual it's not just a problem for a

family it's a problem for every

institution it's problem for every

company it's a problem for every city

every municipality every government

every civilization they all have this

problem and you can generally trace the

problem to

i i fought a war i couldn't afford to

fight

and i paid for it with money i didn't

have

yeah right

if you

you declare war on covid you've got a

war you declare war in vietnam you

declare a war on fill in the blank every

history is full of wars

if i had to fight them with taxes

then eventually my population would say

no more we don't want to pay the tax if

i fight them by inflating the coinage

then i get a couple years two three four

years before people realize it

eventually i just collapsed the currency

so

money is essential to civilization

the problem is inflation and why does it

happen it's a natural human condition

because as you have an authority that

controls the money the temptation to

inflate the money supply is

is omnipresent and and inescapable and

every civilization has suffered from it

at one point in time what is bitcoin

well bitcoin is the world's first

engineered monetary system and what

happened is a set of engineers nameless

engineers

recoiled in horror

after the great financial crisis with

all the bank bailouts and they looked

and they said this just isn't fair it

isn't right

we want to create a better money and

they used two technologies they use the

internet

the idea that i could internet i could

network hundreds of thousands or

millions of computers

and they used cryptography the idea that

i could cryptographically sign something

so that it could not be tampered with

with anyone friend or foe

and using those two technologies they

conceptualized

the idea of an immutable ledger

if you will a bank in cyberspace

what if a hundred people got together a

hundred people with money got together

and they said we're going to create a

bank in cyberspace

and um

we want to put our money there and we

don't trust each other

we don't trust the government we don't

trust any

corporation we don't even trust any one

computer

so we create a program that keeps track

of a ledger

21 million coins

or shares in the bank divided divisible

by a hundred million called this down to

a satoshi so 2.1 quadrillion satoshi's

you don't have to know that all you need

to know is there's 21 million coin units

you can't make any more and they wanted

to create a credit so that they could um

they could send their money to each

other to anybody in the network

they could store it for a thousand years

10 000 years a million years forever

and they don't have to trust anybody

so

they created this idea of of um bitcoin

it's an asset

that's protected by cryptography

and it's stored on a ledger

software the software administers the

ledger

the twist is

we distributed the software on thousands

and thousands of separate computers

every com every bitcoin node is running

a copy of the ledger so everybody in the

world that that has their money in the

bank has a copy of all of uh the money

in the bank and all the transactions

since the beginning of time

so it's the immutable truth

every 10 minutes the system

takes a batches a set of contra of

transactions and then redistributes the

money based upon

upon the instructions of the owners if i

want to send you my bitcoin i send it

and it goes to you and every single

computer in the network updates that and

they all check it cryptographically

using using uh modern encryption

now how do we defend the network

there there's

there's really three nodes of interest

to make this uh compelling the first

node is that bitcoin node that keeps

track of that ledger it's the most

secure uh database in the world and it's

a database of immutable truth it's a

it's the ledger of money the second node

is a minor it's uh it's um

a sha-256 or it's an encrypting miner

that's generating hash functions to

protect the network and there are

millions of them and they're all

competing with each other to build the

next block

there's only one out of two million

involved in this network it's like every

every miner gives you a lottery ticket

and one of the two million will get to

build an xbox and we'll get paid a lot

of money like three hundred thousand

dollars and you don't know which one

so the miners are a wall of encrypted

energy

they're converting electricity into

hashes and then inside that wall of

electricity or wall of energy

is the bitcoin ledger which is

distributed in a decentralized fashion

and there's one other interesting node

called a lightning node this is a layer

2 decentralized system this is

decentralized payments it'll move small

amounts of bitcoin at the speed of light

programmatically almost for free okay

so

bitcoin is a decentralized

it's a decentralized piece of software

the brilliance of it is it's a bank and

cyberspace that nobody controls

nobody can corrupt

it's it it's a bank run by incorruptable

software offering a global

affordable simple

secure

savings account

for everybody on earth

that has neither the means nor the

inclination to run their own hedge fund

you have some money you have life

savings you simply don't want to lose it

you want to put it in a bank

so bitcoin is that bank and cyber space

these engineers came up with this idea

what are the engineers well we don't

know we know some of them they're the

cypherpunks they were they were into

cryptography

uh the most important of them was

satoshi who we don't know who it was

satoshi wrote the white paper created

the first version of bitcoin gave it to

the rest

and initially there wasn't any money in

the network they just ran it for a year

as a hobby

right um

and then over time there was a famous

famous transaction where somebody bought

uh a pizza

right for like 10 000 bitcoin

one pizza and uh and that was the first

transaction and then the network

gradually began to monetize as people

bought into the network

and so

it was it's like a fire in cyber space

should we be nervous that we don't know

the identity of the founder

no i don't think we should be nervous we

should be joyful because

for bitcoin to work it needs to be money

of the people it needs to be not

controlled by any individual it needs to

be not under the thumb of a founder or

corporation or one strong holder the

most important thing satoshi did was he

created this gift he gave it to the

world

i assume he some people think she some

people think it's multiple people

but satoshi gave this gift to the wall

and disappeared and uh and satoshi mined

about a million coins getting it started

but they never those coins never moved

never they've never been moved satoshi's

never appeared again and then the

network was was in essence a community

development all around the world for the

next decade and it's simply grown from

a million dollars in the bank to 10

million to 100 million to a billion to

10 billion

to 100 billion

in march of uh our second quarter of

2020 was about 180 billion dollars in

this network and that's where i got

involved i was late

but when i got involved what i saw was

uh i saw

an engineered monetary asset a digital

gold if you will sitting on an open big

tech monetary network and i said

this is an economic imperative because

this solves the problem of inflation for

a corporation with lots of cash

i had a lot of cash and it was i thought

i was going to lose all of it if i

didn't invest in something and i said it

is also

a moral imperative

this is a technology to give property

rights to 8 billion people on the planet

that don't have property rights right

bitcoin is the highest form of property

the human race has has ever invented and

i'll explain why in a second

there's two billion people don't have a

bank

right you can give everybody on the

planet a bank and property rights that

that cannot be corrupted and cannot be

inflated and confiscated you can give it

to them for the price of a free download

on android

on if you've got a 50 phone and you can

download some software you can have your

own bank your own property rights your

own economic freedom and economic

empowerment so it's a moral imperative

and then finally it's a technical

imperative

you're talking about the digital

transformation of everything else the

digital transformation of property of

gold of banks the digital transformation

of war the digital transformation of

government of security it's a it's a

deep idea

but in essence what we're

if the economy's got

500 trillion dollars worth of property

and corporations and stuff in it

well digital digital property is capital

is money is worth that amount it's worth

half of everything right and so

we never figured out how to digitally

transform money or digitally transform

capital

we did digitally transform photos and

videos in education and books

and relationships and communications

right

and you know the secret to success of

google and amazon and apple and facebook

is the digital transformation of

entertainment and education and

communications but think about what it

means to digitally transform 10 trillion

dollars of gold or a hundred trillion

dollars of property

or a hundred trillion dollars of

currency

so

these engineers they wanted to solve

that problem and of course

here's the big there's so many big ideas

one is

it was engineered to be a digital goal

with none of gold's defects

21 million coins but you can't make any

more the problem with gold is gold

miners inflate the gold supply

and gold bankers inflate the gold paper

supply they dump gold derivatives on the

market

with every other asset on earth anything

else you can own houses gold silver

commodities stocks bonds

when the price goes up

the supply increases

if i increase the supply the price of of

any stock by a factor of 10 the company

issues more stock of course

if i buy all the bonds all the municipal

bonds

the price of bonds go up people issue

more bonds

right if i drive up the price of gold by

a factor of 10 people print more gold or

mine more gold

bitcoin's the only thing in the world

that's inelastic to price if the price

of bitcoin triples you can't make any

more if the price goes up by a factor of

a million you can't make any more now so

let me get tucker let me just give you

one more engineering insight

in engineering

there's something called conservation of

energy yes and the whole point of

conservation of energy is is energy can

either be made or destroyed there must

be conservation of it

the mathematical

metaphor the mathematical analogy to

that is proper math 10 plus 10 equals

20. 2 plus 2 equals 4.

if 10 plus 10 ever starts to equal 18

starts equaling 18

you've got a problem yeah if you have a

bathtub and there's a leak if you have a

swimming pool with a leak if i have

electric system with a short circuit

if i have if i have a leak in my

engineering system nothing works nothing

in the world of ocean engineering

aeronautical engineering electrical

engineering nothing works lest you

unless you respect conservation of

energy

the problem with inflation is inflation

does not respect conservation of energy

i'm i've got a leak in the system i've

designed a currency which is not

conservative

so properly understood if you said i

want a conservative money supply

a conservative money supply would be

there's a

10 billion dollars in the economy and

nobody prints anymore right and if you

and that's the austrian economic sound

money principle

bitcoin is a conservative monetary

system it's the first system that

respects the laws of thermodynamics and

the laws of physics and the laws of math

which means it is true

and pure

right it has integrity

if you have integrity

if you have something which is true and

pure and you have durability

then

you can build a family around it a life

around it a company around it

or civilization around it

steel is concentrated energy and

metallic form you ever walk in a steel

power steel plant and you look at the

energy going into steel refining

it's concentrated energy

the history of

the human race is the civilization that

channels energy most effectively always

wins steel trumps iron iron trumps

bronze bronze trumps

rocks

bows and arrows trump the guy with the

spear the guy with the spear beats the

guy with the knife it's always a matter

if you have air power you beat land

power sea power beats the beats the army

and nuclear power trumps everybody

and uh and so

if i have steel i have concentrated

metallic energy i can create a

skyscraper punched up 100 stories in

new york how long will it last 100 years

how long will a steel ship last longer

than you will last as long as it doesn't

corrode

wooden ships

not so much

wooden ships rot

right you want to build a building to

and punch it up against gravity and hold

it a hundred years you need concentrated

energy if you want to build

a trust fund that'll last a hundred

years

how do you save how do you save a

hundred thousand dollars for a hundred

years and give it to your great

grandkids

you put in the u.s dollar use 99

of your economic energy if you're maybe

99.5

you put in gold gold supply doubles

every 30 years the gold bankers keep

inflating the gold maybe you lose 90 of

your economic energy but that would be a

lucky happenstance because

just about every country on earth sees

the goal from their citizens the last

hundred years everybody even the u.s

they take your goal yeah so you want to

save money for 100 years you can't do it

with the currency you can't deal with

gold which company is going to be around

100 years

you want to you want to put 100 000 into

real estate in florida can you buy a

hundred thousand dollars let's say you

could

two percent tax

two percent maintenance four percent

maintenance fee four percent of a

hundred thousand four thousand dollars a

year

half-life like

your money's not going to last 100 years

how do i preserve my property which is

economic energy which is capital which

is money how do i preserve that

i need something harder

harder right more durable i need a steel

i need an economic steel

steel is concentrated metallic energy

bitcoin is concentrated digital energy

it's it's energy in digital form

it's vacuum-packed food it's something

sitting in uh

in orbit right

right

i eliminated the friction

on energy what's the half-life of energy

if i take a megawatt of power and i sell

it at 12 cents

a kilowatt hour i have about a million

bucks okay i'll give you a million

dollars of electricity how long can you

hold it in a battery you lose two

percent a month

you can't hold it very long you can lose

20 24

depletion rate and a battery of

electricity how do you send a million

dollars of electricity from new york to

tokyo

you can't you can send electricity 500

miles over a power line you'll lose 6

percent send it 10 times you'll lose 60

percent

it doesn't move

convert that energy that electricity

into digital energy a la bitcoin you

upgrade it

if you were to convert a megawatt of

power via bitcoin miner into bitcoin

you'd have about five million dollars

worth of bitcoin you can hold it forever

you can send it to tokyo for a nickel

okay you can put it in a trust fund

right

bitcoin's going up 170 a year for a

decade the s p 500 index is going up 14

a year on average for a decade gold is

flat it's not going anywhere it's

getting demonetized it's a dead rock and

a basement it's not fast enough you

can't put gold on an iphone

gold's getting depleted inflated and

manipulated away by the bankers and the

miners

so

bitcoin is simply

pure economic energy these engineers

satoshi and all of satoshi's compatriots

what they did is created uh an

engineered monetary asset on an open

permissionless network

that anybody could participate in