5min chapter

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WHY ARE WE BULLISH? Luke Broyles, Cypherpunk Cinema, CJ Konstantinos ep326

BTC Sessions

CHAPTER

Bitcoin Is the Apex Predator of All Assets

The internet economy has one reserve asset and that asset is Bitcoin. Nothing will ever be able to compete with it because the Bitcoin network is a quantum computer. That transaction finality that's secured by Bitcoin network along with those free market interest rates makes Bitcoin the apex predator of all assets. The real question is, you know what? I've kept my money in Treasuries for the longest time but now I'm starting to see with inflation going the way it is.

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Speaker 1
And the internet economy has one reserve asset and that asset is Bitcoin and nothing will ever be able to compete with it because the Bitcoin network is a quantum computer. Here, people talk about quantum computers all the time. Bitcoin is a quantum computer. Why? Because there is no one entity or even team of entities that can create enough hash power to attack Bitcoin. It's beyond the point of return. And that secures the network and it's that security that we want to apply to our transactions, right? We want to be able to borrow and know that we're not going to have that money taken back from us. We're going to be able to repay a loan and know that it's secured. That transaction finality that's secured by Bitcoin network along with those free market interest rates makes Bitcoin the apex predator of all assets. And that's the real reason that money is flowing into this industry. Yeah, there's a lot of people learning about it. Maybe they put in one or two percent, but I believe for the people I talk to, some people who have $100 million plus net worth. The real question is, you know what? I've kept my money in Treasuries for the longest time, but now I'm starting to see with inflation going the way it is. I can't protect my purchasing power. Yeah, there's no credit risk. And I know for a fact the government can print that money and pay it to me. But when I get that money, I don't know what I'm going to be able to buy. Someone who bought a bond, a two year note in 2020, and they thought they said, oh, you know, I'm going to buy a million dollars worth of this two year note. It's going to yield 1%, 2%. And that's great because when I buy my house in 2022, it's like I get my free, but when I have to pay the real estate agent is for free. I don't have to pay for their shit anymore. I don't have to pay their commissions and stuff because interest on this bond is going to pay it. Well, that's wrong because that person had a million dollars in 2020 turns around to buy that house in 2022. And it's $1.3 million. So that was not storing your value. That was not a successful smart move to make. These treasury bonds and notes and bills are not a successful way to store your value through time. Bitcoin, look, pre 2020 Bitcoin was around $7,000. In 2020 and through those years, they expanded the currency supply by 40%. Bitcoin's price is up 300%. So yeah, it went to 70 and came back down to 23 or whatever we're at right now. But it was at 7,000 before they started printing all the money. So all these people say Bitcoin is not a successful inflation hedge. Well, hold on, let's do some math because I'm up 300% since they turned on the printers. And your treasury bond is yielding negative rates because, I mean, if you don't know already, I don't trust the government CPI. The government CPI is not accurate. Real CPI is probably 13%. I think it's safe to say, just double it to give you the answer. A lot of comments would agree with that. Even Peter Schiff, who hates Bitcoin, would agree with that point. Real CPI starts. So if you're getting 5% and the real inflation is 13%, you're negative 8%. You're losing 8% of purchasing power a year every year. You're going to buy 8% smaller house year every year, even though you're saving up. So I think some bigger players within the system who have really not paid that much attention because they have a lot of cash flow, they have old businesses, they're starting to pay attention because they're starting to realize, well, wait a second. We planned this out 10 years ago and we were supposed to build three factories. But now I can only build one factory. What the hell is going on? I thought we had this planned out and this was going to take care of itself and we would be expanding by this point. So what's happening is the realization of the dilution of the collateral, which is the treasuries through all the money printing is turning people to Bitcoin. And Bitcoin is the answer because it's secured by its energy. And yeah, it can trade at big premiums. I mean, it was at 70,000. It was only cost to me around 16,000 to produce a Bitcoin. Since then, the network has grown quite a bit and because the network grew, difficulty has gone up as difficulty goes up. The cost of production goes up. So it squeezes your margins. But just that alum, that Bitcoin is alive, it has its own mechanism for price discovery nobody can tell you it's just supply demand. There's producer economics playing a role in securing that value. And then that the role that it's playing is not in the traditional system where I have to trust Citibank and Wells Fargo to custody my Bitcoin. I can be my own bank in a free market internet economy where interest rates are determined by supply and demand and free market principles. Free market economics and incentives are going to win over these centrally planned systems. And it's just a matter of time. And to me, the time is very short because the dollar is at the end of its life cycle. And we know that because of inflation. I used to tell people about inflation in 2015, 2016, and they would look at me sideways. Right? And then they finally came back in 2021 and they were like, hey, man, what you were saying about you, you were wrong, but you were right because you were just way before your time. And now, you know, people listen, they're like, oh, yeah, I know what inflation is. I see what's going on here. I understand what you're saying. Well, that's the sign. Because we've been waiting for this sign that a lot of people in this marketplace have been waiting for uncontrollable inflation. We've been waiting for the Fed to have to be forced to use the tools that they have to fight inflation. Well, now they're finally being forced to fight inflation. That's the sign that we're at the end of the currency life cycle. So if you guys are out there and you're on the edge, you need to learn about this stuff. You need to protect your wealth by putting it into Bitcoin and understanding what you own and then having the conviction to hold through these ups and downs because you know where the road ends. Damn, dude.

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