The Peter McCormack Show

Lyn Alden is a macroeconomist and investment strategist, and Natalie Smolenski founded and leads the Texas Bitcoin Foundation. In this interview, we discuss the impact of digital currencies on government control, the breakdown of the US system of checks and balances, and the increasing influence of central governments. We also talk about the complexity of the monetary system, the current state of the financial system, and the future of Bitcoin. - - - - Lyn Alden and Natalue Smolenski are both acclaimed as peer leaders within their respective fields. I feel this is because they can provide engaging clarity to complex issues. However, I also feel that it is their ability to be authoritative, honest and calm, within an industry full of noise, miss truths and hidden agendas, that has led to them developing loyal followings. It was an honour to have these two heavyweights of the community coming together on the show. Our conversation began with a discussion on the concept called the "narrow corridor of liberty," which Natalie explained as a theory describing the balance between the state and society in terms of technological advancements, and the race for liberty to stay ahead of tyranny. We then talked about how this applies to the race between Bitcoin and Central Bank Digital Currencies (CBDCs). The conversation took a turn towards the challenges of explaining the upcoming financial challenges to friends and family, in the context of the need to rethink governance in a digital world to prevent excessive government control. The system of checks and balances in the United States has broken down, with laws now being made through federal agencies instead of Congress. These agencies are often not accountable to the American people. Lyn talked about the correlation between the breakdown of the financial system and Increased government control. She emphasized the complexity and opacity of the money system, which fuels political polarization and distracts people from focusing on the real issues. Those in power may want to divert attention from the money system, whilst corporate interests have an undue influence on government decisions. The need for reforms is readily apparent e.g. lobbyists' influence, Congress members trading stocks and the lack of term limits. But, the fundamental issue is the risks resulting from a concentration of power. Decentralisation is a bedrock of Bitcoin’s development, so there is real excitement that those pushing for change finally have a powerful tool with which to enact real and meaningful change. That is why Bitcoin has people of the calibre of Lyn and Natalie. - Show notes: https://www.whatbitcoindid.com/podcast/are-central-banks-losing-control This episode’s sponsors: Iris Energy - Bitcoin Mining. Done Sustainably Bitcasino - The Future of Gaming is here Ledger - State of the art Bitcoin hardware wallet Wasabi Wallet - Privacy by default Unchained - Secure your bitcoin with confidence OrangePillApp - Stack Friends Who Stack Sats

In this episode, we are joined by Steve Lee, the Lead at Spiral, Haley Berkoe, PM at Spiral and… Bitcoin. We discuss whether Bitcoin has a branding issue, and how we can step outside of our little bubble and reach the next wave of bitcoiners. - - - -  Understanding Bitcoin takes proof-of-work. It's a paradigm shift in conceptualizing money - a fundamental rethinking of what constitutes value, security, and freedom. It challenges the status quo, urging a questioning of the trust we place in institutions and the way we perceive economic power structures. Bitcoiners can be an intimidating group of people. They represent a necessary defense mechanism; guarding the sanctity of the protocol, protecting it from dilution or corruption. This resilience forms a crucible that forges steadfastness against external pressures, preserving the revolutionary aspects of Bitcoin against all attempts to co-opt or unduly influence them. However, while the guardianship of this culture is paramount, there lies an equally crucial need to open the gates to broader understanding and adoption. To truly realize its revolutionary potential, Bitcoin must be demystified and made accessible to the masses. This is exactly what Spiral's "Who Is Bitcoin," aims to achieve. They have adopted a lighter, more humorous approach to educational content. By meeting people where they are at and, hopefully, ushering in a new wave of bitcoiners. - Show notes: https://www.whatbitcoindid.com/podcast/here-comes-bitcoin This episode’s sponsors: Iris Energy - Bitcoin Mining. Done Sustainably Bitcasino - The Future of Gaming is here Ledger - State of the art Bitcoin hardware wallet Wasabi Wallet - Privacy by default Unchained - Secure your bitcoin with confidence OrangePillApp - Stack Friends Who Stack Sats

Today we have two representatives of the Bitcoin mining firm Luxor Technologies: Nick Hansen, CEO, and Matthew Williams, Head of Derivatives. In this interview, we discuss derivative trading, the potential impact of the BlackRock ETF on the market, the challenges Bitcoin miners face, the political and economic situation in Argentina, and the importance of hedging in business operations. - - - - Bitcoin’s price has been relatively stable for well over a year. Whilst prices have recovered from the cycle lows seen in November 2022, the rapid price swings, which have been a feature of the market since its launch, have subsided. Nevertheless, a series of events are aligning that raise the prospect of a renewed period of volatility in the near future: the approval of a spot ETF, the Bitcoin halving, and further macro shocks. The issue for capital investment in the Bitcoin mining space is that such volatility distorts and stresses normal business management practices. There have been numerous mining companies that have suffered existential crises because they have over-extended at the wrong time, or, they have had ineffective hedging strategies. Luxor aims to help improve the cost of capital for Bitcoin miners through the introduction of new derivative products. Luxor’s strategy is predicated on hashrate being treated as an asset class; miners are able to sell their hashrate forward, guaranteeing a return. The contracts are determined by an agreed hashprice, which is a function of various variables: the block subsidy, transaction fees, network difficulty, and bitcoin price. These contracts are then tradable as derivatives, which enables investors to gain exposure to Bitcoin mining without needing to be physically involved. Luxor is also working on additional financial products, including what will be a controversial yield instrument. There is still significant hesitancy in the community around such markets, and it will take time to build liquidity. Perhaps a new approach can renew demand for lending. And, if anyone can pull this off, who better than a diversified company that weathered a brutal bear market that aggressively showed who was naked when the tide went out? - Show notes: https://www.whatbitcoindid.com/podcast/bitcoin-mining-adapt-or-die This episode’s sponsors: Iris Energy - Bitcoin Mining. Done Sustainably Bitcasino - The Future of Gaming is here Ledger - State of the art Bitcoin hardware wallet Wasabi Wallet - Privacy by default Unchained - Secure your bitcoin with confidence OrangePillApp - Stack Friends Who Stack Sats

Preston Pysh is a co-founder of The Investor Podcast Network and James Lavish is a macro analyst. In this interview, we discuss the US’s increasing debt and its impact on the economy, as well as the cycle of debt and inflation that many people find themselves trapped in. We also talk about the challenges of promoting Bitcoin adoption in economically unstable countries and the need for stable currencies in those countries. - - - - US national debt has increased over 80 times in the last 100 years, rising from $404bn in 1923 to $33.17tn in 2023. In the 1920’s the US was paying off debt used to finance the country’s involvement in WW1 that had resulted in its debt to GDP ratio surging to 33% by 1919; by 1923 this ratio had been reduced to around 25%. Today, debt to GDP is over 120%, higher than after WW2. The current issue is a result of two main structural economic problems that have manifested since the 1970s. Firstly, debt increased rapidly, from just under $3tn in 1971, to over $10tn in 2000, and to $20tn in 2010. However, GDP grew at a much slower rate over this period. Central Banks have therefore had to let inflation rise to cover the gap, with interest rates being the tool they use to control inflationary pressures. Inflation is effectively a tax that disproportionately affects the poorest people in society. As vining costs rise, personal debt climbs: people struggle to keep up with their expenses due to inflation and resort to using credit cards. Increasing interest rates only worsens their financial situation. As their credit deteriorates, they are offered even higher interest rates, creating a vicious cycle that often leads to bankruptcy. Many people are trapped. The real problem is that the national debt, believed by many to have reached unsustainable levels, doesn’t look set to be reduced anytime soon. For example, there has been a staggering increase in the national debt over the past two weeks amounting to $500bn. This debt is used to pay for government activities and funding numerous programs. But increasingly, it is needed to also pay the interest on that debt that is expected to be $663bn this year and $1.4tn by 2033. Credible people on Wall Street are discussing the debt spiral. Corporate earnings are expected to decrease due to the lagging effect of the Fed raising rates. Private investors are also starting to wake up to the fact that debt and inflation will have an increasingly erosive impact on wealth. Owning assets like gold, silver, and Bitcoin can help protect against it. It is more important than ever to understand the situation that is evolving. - Show notes: https://www.whatbitcoindid.com/podcast/the-debt-spiral This episode’s sponsors: Iris Energy - Bitcoin Mining. Done Sustainably Bitcasino - The Future of Gaming is here Ledger - State of the art Bitcoin hardware wallet Wasabi Wallet - Privacy by default Unchained - Secure your bitcoin with confidence OrangePillApp - Stack Friends Who Stack Sats

David Marcus is CEO & co-founder of Lightspark, a Lightning Network payments protocol. In this interview, we discuss his career in the payments industry and former role as head of Facebook's Libra project, his frustration with the current financial system, how Lightspark is focusing on addressing the challenges of the Lightning Network, the potential impact of real-time payment systems and the scalability of Bitcoin. - - - - David Marcus' journey into the payments industry began at the age of 23 when he started his first company after working at a bank. He built a successful telco company in Switzerland and later started another company focused on mobile payments. His journey took him to Silicon Valley, where his company was eventually acquired by PayPal. Despite his success, Marcus feels frustrated with the state of payments and the lack of an open and interoperable protocol for money on the internet. He believes that money is an important aspect of people's lives and how they measure success. He sees a lot of injustice in the current financial system and feels passionate about improving it. Our conversation covers David’s role in heading Facebook's involvement in the payments space, particularly with the development of Libra, a payment system designed to reach billions of people. We talked about the challenges and pushback the project faced, and how the Libra project was a significant part of Marcus' journey in building his current company, Lightspark. David has come to the conviction that Bitcoin is the only form of neutral internet money, which stems from his experience trying to build a technology that could scale and provide a stable form of digital money. He believes that a real-time global payment systems, similar to sending an email or text message, combined with the decentralization and liquidity of Bitcoin, can unleash a significant increase in global GDP. Scaling issues will be a major challenge as adoption increases. Lightspark seeks to help address these limitations by focusing on the usability and operational challenges of the Lightning network, such as liquidity management and route finding. They have developed technology to simplify Lightning's channel-based system, making it easier to spin up and maintain Lightning Network nodes, allowing for faster and cheaper bitcoin movement. There are also other potential innovations that could greatly enhance Bitcoin’s use as a payments rail. - Show notes: https://www.whatbitcoindid.com/podcast/building-the-global-financial-system This episode’s sponsors: Iris Energy - Bitcoin Mining. Done Sustainably Bitcasino - The Future of Gaming is here Ledger - State of the art Bitcoin hardware wallet Wasabi Wallet - Privacy by default Unchained - Secure your bitcoin with confidence OrangePillApp - Stack Friends Who Stack Sats

Joseph Wang is a former senior treasury trader at the Fed who now runs Fedguy.com, a research blog on financial markets. In this interview, we discuss his experience working on the Fed's treasury trading desk, the role of central banks and how this has expanded over time, the relationship between the Fed and the Treasury, quantitative easing, deficit spending, the growing national debt, and the benefits of decentralisation. - - - - The Federal Reserve is the United States Central Bank. Established in 1913 after a series of banking panics, its primary purpose was to provide a more stable and reliable banking system by regulating financial institutions, providing banking services to the government, and promoting financial stability. However, the Fed’s role has expanded over time to encompass market interventions in response to economic fluctuations and financial crises. One crucial aspect of the Fed's remit is the implementation of monetary policy. Through tools such as open market operations, reserve requirements, and interest rate adjustments, the Fed seeks to control inflation, stabilise prices, and promote maximum employment. As the economy has become more complex, so has the Fed’s toolkit to address emerging challenges to include extreme actions such as becoming the lender of last resort and quantitative easing. A popular criticism is that the Fed’s actions have materially affected the state’s increasing and unsustainable deficit and debt growth. Whilst the Fed does not have the power to directly increase or decrease deficits, it can indirectly contribute to deficits through its monetary policy actions. Regarding the national debt, the Fed currently owns significant amounts of U.S. government bonds, resulting from its efforts to stabilise the economy during times of crisis. A more fundamental issue is the Fed’s potential role as the centralised authority in the control of money. CBDCs provide for the complete digitisation of money and the disintermediation of retail banks, which would provide the Fed with even more capacity to affect monetary policy. Despite the risks to personal sovereignty, such power would be too tempting for central bankers to forgo. Essentially, decentralisation is needed to keep the Fed in check. All roads lead to Bitcoin! - Show notes: https://www.whatbitcoindid.com/podcast/how-the-federal-reserve-works This episode’s sponsors: Iris Energy - Bitcoin Mining. Done Sustainably Bitcasino - The Future of Gaming is here Ledger - State of the art Bitcoin hardware wallet Wasabi Wallet - Privacy by default Unchained - Secure your bitcoin with confidence OrangePillApp - Stack Friends Who Stack Sats

William Casarin is a Bitcoin Core, Lightning Network and Nostr developer. In this wide-ranging interview, we discuss the current debate over Canadian state control over media and the disillusionment of its citizens, the advantages of using Bitcoin in the context of current banking constraints, the potential of decentralized social media platforms such as Nostr, and the benefits and challenges of AI. - - - - William Casarin is one of the band of amazing developers within our community who ensure the cogs of Bitcoin-related machines keep working. Our conversation began with a discussion about the current situation in Canada amid concerns about state control of the media. We also touched on the decline of Canada and the disillusionment of its citizens, especially after a trucker protest revealed the true nature of the politicians. We then shifted our conversation to our experiences with banks, which can be invasive and unreliable, and the advantages of using Bitcoin. Banks today restrict financial liberty: there are serious questions regarding their overreach in implementing KYC and AML checks. Whilst running businesses on a Bitcoin standard has advantages, there are real challenges as most businesses still require access to fiat currency and associated payment channels. William then shared his vision of creating a level playing field for free speech online and mentioned the progress being made in decentralised social media platforms such as Nostr. He highlighted the complementarity between Bitcoin and free speech, as both are protocols that promote freedom and autonomy. We also discussed the use of AI in various fields. AI can be used to accelerate intelligence and make tasks more efficient, such as generating assets for video games. However, there are serious concerns about overreliance on AI and the potential dangers it may pose. Cryptography will be an important tool in dealing with the security risks associated with AI, despite states such as the UK seeking to ban end-to-end encryption. - Show notes: https://www.whatbitcoindid.com/podcast/decentralise-everything This episode’s sponsors: Iris Energy - Bitcoin Mining. Done Sustainably Bitcasino - The Future of Gaming is here Ledger - State of the art Bitcoin hardware wallet Wasabi Wallet - Privacy by default Unchained - Secure your bitcoin with confidence OrangePillApp - Stack Friends Who Stack Sats

Steven Lubka is Managing Director of Private Client Services at Swan Bitcoin. In this interview, they discuss recent developments in the legal disputes between Peter and Craig Wright. Then, in the build-up to the Pacific Bitcoin Festival, they talk about various topics such as Bitcoin’s community, the importance of financial stability, the cultural revolution brought about by Bitcoin, and the need for a positive vision of the future. - - - - Ahead of the Pacific Bitcoin Festival, the podcast was a great opportunity to catch up with one of the show’s favourite guests, the peripatetic Bitcoiner Steven Lubka! In light of recent developments, the conversation kicked off with an update on Peter’s ongoing litigation involving Craig Wright. This litigation is still live, and in time Peter will be able to tell the full story, but, it seems like we’re definitely a lot closer to the end given the events of the past week. The conversation then shifted to our experiences within the Bitcoin community. We have both felt a strong sense of unity and passion within this community, a stark contrast to other industries. Bitcoiners tend to have multiple interests and go deep into various fields. Further, the community remained unfazed by the volatility, focusing more on the cultural revolution brought about by Bitcoin rather than its monetary value. As we delved deeper into the conversation, we reflected on the concept of time and its scarcity. We also discussed the importance of financial stability and its impact on one's ability to make meaningful choices in life. Financial constraints can limit one's ability to reevaluate their life and make different choices. We acknowledged the devastating effects of financial instability, citing examples from countries like Argentina and Lebanon. Towards the end of our conversation, we touched on how the mechanics and structure of a monetary system can shape human culture and emphasized the need for meaning and hope in society and the dangers of nihilism. We also discussed the possibility and impact of Bitcoin ending and our confidence that the community assembled around Bitcoin will continue to change the world regardless of the outcome of Bitcoin itself. - Show notes: https://www.whatbitcoindid.com/podcast/bitcoins-cultural-revolution This episode’s sponsors: Iris Energy - Bitcoin Mining. Done Sustainably Bitcasino - The Future of Gaming is here Ledger - State of the art Bitcoin hardware wallet Wasabi Wallet - Privacy by default Unchained - Secure your bitcoin with confidence OrangePillApp - Stack Friends Who Stack Sats

Mike Brock is the lead at TBD, the Bitcoin-focused subsidiary of Block. In this interview, we discuss Bitcoin’s limitations in solving complex societal problems, counter-arguments to the narrative that monetary flexibility leads to falling living standards and wasteful investments, the complexities and risks of Bitcoin’s widespread adoption, and why, despite certain limitations, Bitcoin still has the potential to be the most important monetary asset in human history. - - - - The Bitcoin community has had to harden itself against attacks from outside, by those either too ignorant or too invested in the incumbent system to allow themselves to understand the brilliance of the innovation. However, not all of those who raise issues counter to mainstream Bitcoin opinion are either attacking the innovation or the community. Some opinions are manifestly good faith attempts to sharpen the arguments needed to help wider Bitcoin adoption. Mike Brock is someone who sits in this camp: he is an unapologetic advocate for Bitcoin but doesn’t necessarily agree with what could be framed as Bitcoin orthodoxy. In this podcast, we discuss in more detail the concerns around groupthink on certain issues, which is in turn leading to a branding issue that seems to be affecting wider adoption. Specifically, is there a misconception in the Bitcoin community that Bitcoin has already won and will replace the US dollar? Has loose monetary policy since 1971 actually resulted in reduced living standards and significantly poor corporate investment behaviour? Are inflationary metrics providing a real understanding of consumer experiences? And, will a strict monetary policy have a net positive or negative influence on economies and societies? Consideration of the arguments for and against deflationary or inflationary currencies enables Bitcoin’s true potential to be honed. However, even if Bitcoin has a long way to go before challenging the dominance of the US dollar, it has the potential to immediately help lift millions of people out of poverty by providing open, effective and cheap financial infrastructure. This means Bitcoin has a compelling narrative even within mainstream economic and political assumptions. - Show notes: https://www.whatbitcoindid.com/podcast/hyperbitcoinisation-cant-happen This episode’s sponsors: Iris Energy - Bitcoin Mining. Done Sustainably Bitcasino - The Future of Gaming is here Ledger - State of the art Bitcoin hardware wallet Wasabi Wallet - Privacy by default Unchained - Secure your bitcoin with confidence OrangePillApp - Stack Friends Who Stack Sats

Peter St Onge is an Economist at the Heritage Foundation and a Fellow at the Mises Institute. In this interview, we discuss the burden of excessive government control, corruption & the erosion of trust in institutions, the influence of activists on government decisions, & reducing the size of government. Using examples from Argentina & Lebanon, we talk about the resilience of normal people in the face of a collapsing state, & the challenges of scaling anarchic systems. - - - - What Bitcoin Did makes films, which are published on YouTube under the banner “Follow the Money”. Through the experiences of everyday people, and through the lens of new kinds of currency like Bitcoin, these films explore what money is, who controls it — and how new forms of it could help create a better, more equitable future for us all. So far, 3 films have been released, covering Bitcoin’s legalisation in El Salvador, inflation in the UK and Bitcoin mining in Texas. There are currently 2 further films in post-production: a film about the impact of triple-digit inflation on Argentinians, and a film about the impact of the economic crisis on the Lebanese. These films have had a profound effect on me, providing me with a unique perspective on the role of government. Making these films has spotlighted obvious negative issues emanating from bloated & corrupt states being allowed to thrive. But there are also unexpected positive experiences showing normal people's capacity to show agency & develop innovative methods of self-reliance in the face of a collapsing state. I was eager to share my experiences with Peter St Onge, who I knew could understand and contextualise my observations and insights. We delved into our philosophical beliefs on the size of government and the potential of Bitcoin. Initially, I dismissed libertarian ideas, but my experiences in these countries have challenged this thinking. We discussed the difficulties and potential risks of eliminating the state, acknowledging the natural tendency for people to organise and create rules. We also touched on the role of democracy and the potential problems that arise when the political unit becomes too large. In both countries, I observed the effects of severe economic strain on different social classes. The poor are obviously massively disadvantaged in these situations, and I was witness to many heartbreaking stories. However, the incredibly inspiring stories of resilience and organisation in the face of adversity reinforced my belief in the potential of people when they are not burdened by excessive government control. - Show notes: https://www.whatbitcoindid.com/podcast/the-free-market-for-money This episode’s sponsors: Iris Energy - Bitcoin Mining. Done Sustainably Bitcasino - The Future of Gaming is here Ledger - State of the art Bitcoin hardware wallet Wasabi Wallet - Privacy by default Unchained - Secure your bitcoin with confidence OrangePillApp - Stack Friends Who Stack Sats