The Issue With the Legacy Financial System & How BITCOIN Fixes All of It | Saifedean Ammous (Replay)

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May 23, 2024

Saifedean Ammous, author and Bitcoin expert, dives into the flaws of the fiat financial system and how Bitcoin offers a revolutionary alternative. He explains the dangers of fiat currency, including its role in debt cycles and economic instability. The discussion covers historical shifts from the gold standard and critiques central planning. Ammous also compares Bitcoin's potential to replace traditional financial structures, like the bond market, emphasizing its role in fostering economic freedom and stability.

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INSIGHT

Fiat Money Creation

Fiat money is created when debt is issued, incentivizing its production.
This differs from Bitcoin and gold, which have inherent limitations on production.

ANECDOTE

House Purchase Example

Saifedean Ammous illustrates fiat money creation with a house purchase example.
Borrowing from a bank increases money supply, unlike borrowing from an individual.

INSIGHT

Hard Money vs. Fiat Money

Hard money fosters saving and long-term planning due to its stable value.
Fiat money, with its inflationary nature, encourages spending and debt.

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Rich Dad Poor Dad

What the Rich Teach Their Kids about Money - That the Poor and the Middle Class Do Not

C.P.A. Sharon L. Lechter

Robert Kiyosaki

The book tells the story of Robert Kiyosaki's two fathers: his 'poor dad,' a highly educated but fiscally poor man, and his 'rich dad,' the father of his best friend who was a successful entrepreneur. It emphasizes the importance of financial education, distinguishing between assets and liabilities, and building wealth through investing in assets such as real estate and businesses. Kiyosaki argues that a good education and a secure job are not guarantees for financial success and provides practical lessons on how to make money work for you rather than working for money[1][3][5].

The bitcoin standard

Saifedean Ammous

The Bitcoin Standard analyzes the historical context to the rise of Bitcoin, the economic properties that have allowed it to grow quickly, and its likely economic, political, and social implications. The book takes the reader on an engaging journey through the history of technologies performing the functions of money, from primitive systems to modern government debt. It explains the operation of Bitcoin as a decentralized, distributed piece of software that converts electricity and processing power into indisputably accurate records, allowing users to perform traditional monetary functions without relying on authorities or physical infrastructure. The book also explores common questions surrounding Bitcoin and its potential as a store of value and a network for final settlement of large payments, challenging government monopolies and offering a vision of money extricated from politics and borders.

This is water

Some Thoughts, Delivered on a Significant Occasion, about Living a Compassionate Life

David Foster Wallace

This book is a transcript of the only public speech David Foster Wallace gave on his views on life, delivered as a commencement address at Kenyon College in 2005. The speech delves into the difficulties of empathy, the unimportance of being well-adjusted, and the apparent loneliness of adult life. Wallace argues that true freedom comes from the ability to be fully conscious and sympathetic, and he emphasizes the importance of learning how to think and exercise control over one's thoughts. The speech is known for its blend of casual humor, exacting intellect, and practical philosophy, offering advice that renews readers with every reading. After his death, the speech became a treasured piece of writing, reprinted in various publications and widely discussed online[1][2][4].

The Fiat Standard

Saifedean Ammous

In 'The Fiat Standard', Saifedean Ammous delves into the world's transition from the gold standard to the current system of government-backed fiat money. He explains the fiat standard as a feat of engineering and technology, similar to his analysis of bitcoin in 'The Bitcoin Standard'. Ammous outlines the purposes and failures of the fiat standard, deriving its wider economic, political, and social implications. He also examines how bitcoin could affect the fiat system over time, highlighting issues such as inflation, government intervention, and the potential for bitcoin to provide a more stable and salable alternative across space. The book critiques the distortions caused by fiat money in various global markets and suggests that bitcoin could lead to an orderly upgrade of the world's monetary operating system.

The meteoric rise of Bitcoin and other cryptocurrencies over the past years just goes to show that even something as ubiquitous as money is ripe for disruption.

And even though crypto is a space that many of us are just beginning to understand, its principles call into question the validity of the existing fiat monetary system.

In his latest book, The Fiat Standard: The Debt Slavery Alternative to Human Civilization, Dr. Saifedean Ammous sets out to do just that.

Using the first principles thinking that he used to write his bestselling book, The Bitcoin Standard, Dr. Ammous analyzes the history of fiat currency, the shift away from the gold standard, and the economic, social and political fallout that came as a result.

Find out more by ordering his book here: https://amzn.to/3DRdLbf

SHOW NOTES:

00:00 | Introduction

01:28 | What is Fiat Currency?

05:57 | How Types of Money are Created

14:25 | Fiat, Self-Correction, and Hyperinflation

18:10 | What is Hard Money?

23:48 | The Transition to Universal Debt Slavery

27:54 | Fiat vs. Hard Money

33:10 | Deflation vs. Inflation

43:22 | Why the Wealthy Hold the Most Debt

46:23 | Has Fiat Currency Ruined the University?

1:01:34 | Bitcoin vs. Central Planning

1:05:26 | Why Printing Money is Destructive

1:19:28 | Bitcoin vs. Gold Standard

1:24:18 | How Bitcoin Will Consume the Bond Market

1:28:06 | Transitioning to a Crypto Economy

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