The Peter McCormack Show

Lyn Alden is a macroeconomist and investment strategist. This interview is the final of three shows where we discuss Lyn’s amazing new book: Broken Money. In this show, we recap the flaws in the modern financial system, and then we discuss the potential of Bitcoin as a decentralised solution with its ability to allow hard asset money to move globally at speed. - - - - It is becoming increasingly clear, even to people without expertise in monetary or fiscal matters, that the current economic system is in need of urgent reform. The money supply continues to inflate, rewarding large, well-connected entities at the expense of smaller ones, with liabilities shifting from the private to the public sector. At the state level, many countries are facing serious challenges in accumulating capital and making global payments. In short, money is broken. At a more fundamental level, there are serious technical limitations with current forms of money. Humans have been trying to make gold and silver easier to use for thousands of years, leading to the development of various banking tools. However, the increasing level of abstraction in these tools has caused major issues, especially with the rise of telecommunications. This has led to the current system where physical money is too slow for the modern global economy. Bitcoin is a potential solution to all these issues. It is different from previous monetary innovations as it allows hard asset money to move globally at the speed of digital communications, which could revolutionise the financial system. It is unsurprising that it has emerged at the end of the long-term debt cycle, as an innovation that unified various technical concepts developed over previous decades, with the aim of creating a form of money suitable for the digital age. But perhaps more important than the technical aspects of Bitcoin is the rigid and predictable monetary policy, which consists of two simple rules: a fixed limit of 21 million coins and a halving of the inflation rate every 210,000 blocks (approximately every four years). Its decentralised nature protects this monetary policy from being corrupted. This simplicity contrasts starkly with the complex and convoluted monetary policies of central banks and governments. Bitcoin therefore offers a global, decentralised ledger that allows for easy cross-border transactions and protects against debasement. Whilst its advantages are more immediately obvious to the people and governments in developing countries, Bitcoin’s importance extends to all people and all countries. There are always risks to Bitcoin that the community needs to be prepared for, so it is vital to educate people about Bitcoin and its long-term potential.   Show notes: https://www.whatbitcoindid.com/podcast/how-bitcoin-fixes-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

Lyn Alden is a macroeconomist and investment strategist. This interview is the second of three shows where we discuss Lyn’s amazing new book: Broken Money. In this show, we explore the concept of hard money, the ascendancy of paper money and the transition from gold-backed currency to fiat currency. We talk about the birth of banks, fractional reserve lending, central banks, the flaws of the Bretton Woods system, and the impact of the petrodollar. - - - - Historically, hard money like gold has been considered the ideal form of money due to its scarcity & durability. However, another aspect to consider is utility. Paper money, despite not being as hard as gold, became dominant because of its convenience and speed. Speed is perhaps one of the most important functions people demand in money: throughout history, humans have sought to make money more portable and efficient. At the same time as money was evolving, so were the institutions associated with managing money. Banks can be traced back hundreds of years with the provision of credit and the increased portability of money. The modern form of banks emerged in Europe over the past few centuries; the importance of banking to the functions of the state led to the development of central banks that financed governments, particularly during times of war. The demand for speed opened the door for the introduction of fiat currency, which offered faster and more convenient transactions. Government legal tender laws and taxes on non-monetary assets further solidified the dominance of fiat currency. But, this also opened up the distortion of money as a result of greed and abuse. The speed arbitrage provided by fiat currency has allowed for more manipulation and corruption. The evolution of fiat currency led to the emergence of the petrodollar: the United States sought to replace gold with the dollar and maintain its economic and military dominance by enabling the dollar to become the global reserve currency. However, this has negatively impacted countries outside of the US, and it’s also now affecting the US. The future of money needs a reboot. The development of a decentralized alternative will be the focus of the final show of this series.   Show notes: https://www.whatbitcoindid.com/podcast/how-money-broke 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

Lyn Alden is a macroeconomist and investment strategist. In this interview, we discuss Lyn’s amazing new book: Broken Money. This show, the first in a series of three shows, delves into the history of money: the concept of money as a ledger, its different forms throughout history, as well as the properties that make a commodity suitable for use as money. - - - - One of the key concepts Lyn explores is the idea of money as a ledger, of which there are three main forms: commodity money, governed by the specific properties of the physical commodity being used as money; bank money, which is a ledger governed by nation states and managed by central banks; and, open-source money like Bitcoin, where the ledger is governed by the users, who create and maintain the rules of the system. But how did money develop? Money emerged as an innovation to solve the problems of barter, where the limitations of the double coincidence of wants and lack of trust between traders made transactions difficult. Money emerged as a liquid accounting system making transactions more efficient. Different cultures used various commodities as forms of money throughout history, including shell beads, cocoa, salt, and furs. Each type of commodity used as money had unique properties that made them suitable, such as divisibility and the ability for them to be recombined. As technology advanced, people were able to produce more of these commodities, which led to their devaluation. However, two commodities that were difficult to devalue were silver and gold. These precious metals were rarer and had a natural difficulty adjustment, making them more suitable as money. As important as the technology of money was the evolution of the theory of money. Two competing theories of money emerged: commodity theory and credit theory. Commodity theorists believed that barter was the precursor to money. However, credit as a form of money has been found in modern hunter-gatherer societies and used as an effective way of circumventing the need for commodities as money. The current paradigm is seeing bank money and credit theory coming under significant strain. Every system controlled by human administrators degrades over time, with most currencies experiencing high inflation or even hyperinflation within a human lifetime. However, despite attempts to find alternatives like the dollar or Bitcoin, nothing quite fills the void left by the local currency. How money broke will be the focus of the next show.   Show notes: https://www.whatbitcoindid.com/podcast/the-emergence-of-money This episode’s sponsors: Iris Energy - Bitcoin Mining. Done Sustainably Ledn - Financial services for Bitcoin hodlers 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

Matthew Mežinskis is the creator of the Crypto Voices podcast and Porkopolis Economics website. In this interview, we discuss the concept of base money, a comparison of global currency valuations (including Bitcoin), COVID-19’s impact on the monetary base, limitations of the current monetary system, government debt, inflation, political problems, and the need for change. - - - - There are quite rightly real concerns over the societal implications of Central Bank Digital Currencies particularly in relation to the capacity it will give governments to erode democratic principles. However, there are already serious concerns regarding the existing system. The transmission of monetary policy, that is, the impact of central bank policy decisions on the economy, is significant. And yet, these policy decisions are done behind closed doors. Around two-thirds of the United States’ monetary base is digital: equating to 20 trillion dollars. Central banks add and remove trillions of dollars from the monetary system through keystrokes and computer strokes, increasing and reducing the bank reserves by increasingly eye-watering amounts. The latest changes have removed material liquidity from the banking system. This has caused interest rates to rise, which has resulted in banking collapses and a cost of living crisis. Some are calling for central banks to be abolished, such as Javier Milei, the libertarian candidate leading Argentinia’s presidential polls. However, central banks are closely entwined to the global economy; there is no easy way to surgically remove them without causing collateral damage to the real economy. Yet, if central banks continue on their current path there will be more currency collapses and a concentration of value in a narrowing set of global currencies. The monetary system is therefore becoming a cartel controlled by a small elite who are benefiting from this situation whilst the majority suffer. There is growing dissatisfaction with this situation and a desire for change among the general population. Bitcoin can play a role in such a change: it both offers a more efficient and less restrictive alternative, but also, educates people as to the nature of the problem with a centralized monetary system. Show notes: https://www.whatbitcoindid.com/podcast/how-central-banks-broke-money This episode’s sponsors: Iris Energy - Bitcoin Mining. Done Sustainably Ledn - Financial services for Bitcoin hodlers 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

Konstantin Kisin is a Russian-British satirist, podcaster, author and political commentator. In this interview, we discuss politics, freedom of expression, and the influence of American discourse on the UK. We also talk about the importance of rational and reasonable discussions, the challenges of self-censorship and the connection between economic issues and "wokeism". - - - - Cancel culture, the practice of publicly shaming or boycotting individuals or organizations deemed to have said or done something objectionable is a phenomenon that has gained prominence in recent years. The exact beginnings of cancel culture are hard to pinpoint, as public backlash and boycotts have occurred throughout history. However, the rise of social media platforms in the late 2000s and early 2010s significantly amplified cancel culture's influence. The problem is the impact cancel culture has in shaping societal discourse and accountability. Supporters view it as a way to hold people responsible for their actions, promote social justice, and challenge systemic issues. They argue that cancelling figures or entities who promote harmful ideas helps to create a more inclusive and equitable society. It can also serve as a form of empowerment for marginalized groups. And yet, cancel culture has faced strong and growing criticism in recent years for its significant negative impacts. The practice often lacks nuance or fairness, leading to disproportionate consequences for minor offences or misunderstandings without due process. Further, it fosters a culture of fear and self-censorship, as individuals may be afraid to express unpopular opinions or engage in critical discussions for fear of being cancelled. Perhaps the most minacious consequence is that cancel culture can lead to further polarization in society as people retreat into echo chambers and become more resistant to differing viewpoints. The effect is to critically hinder open dialogue and mutual understanding. Rather than engaging in constructive dialogue, people are being prevented the opportunity to engage in rational and reasonable debate. If we want to remain free we must be prepared to be offended. Show notes: https://www.whatbitcoindid.com/podcast/the-growing-culture-war This episode’s sponsors: Iris Energy - Bitcoin Mining. Done Sustainably Ledn - Financial services for Bitcoin hodlers 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

Ben Arc is a free open-source software advocate and founder of LNbits. In this interview, we discuss a range of subjects covering poverty, politics, and technology. We talk about the value of hard work, the impact of Brexit, the potential of decentralized platforms like Nostr, privacy concerns, censorship on social media platforms, and the importance of freedom of speech. - - - - Ben Arc is one of the Bitcoin community's most unheralded heroes’: there are numerous occasions when LNbits, which he co-founded, has been mentioned as a vital cog in the development of new Bitcoin software and hardware across the world, particularly in Africa. Then there is Ben’s leading development in the censor-resistant social network Nostr. And, he was an OG Bitcoin progressive pushing against the dogma that Bitcoin was solely a libertarian tool. In this great podcast, we discuss a range of subjects close to Ben’s heart that fall into the big buckets of politics and technology. Ben has a personal experience of poverty, which has shaped his political views. We talk about this and the most important political event to have affected the UK in our lifetimes, Brexit, which has dominated headlines for years and still continues to divide opinion. We then focus on Ben’s opinions of the potential for decentralized platforms to resist censorship and government interference. Nostr was developed out of an LNbits proof of concept application for a decentralized peer-to-peer marketplace. It has morphed into a technology that's not only revolutionizing the way developers build applications but also facilitates a censorship-resistant global social network. In an era of increasing digital censorship, alternative platforms that prioritize freedom of speech are more important than ever. With the backing of influential figures like Jack Dorsey, Nostr could become a dominant platform in the tech world that disintermediates middlemen and tackles censorship. And it shows the potential of Bitcoin to continue to revolutionize industries. Show notes: https://www.whatbitcoindid.com/podcast/what-nostr-did This episode’s sponsors: Iris Energy - Bitcoin Mining. Done Sustainably Ledn - Financial services for Bitcoin hodlers 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

Nigel Farage is a prominent British broadcaster and former politician. In this interview, in the wake of the controversial closure of Nigel’s bank account that led to the resignation of the CEO of Natwest Bank, we discuss the importance of individual sovereignty and the control of money by the state. We also discuss the growing concern over CBDCs and the critical importance of cash. - - - - In June 2023, Nigel Farage had his Coutts UK bank account unexpectedly closed. He firmly believed that this action was a result of political persecution. This sparked a heated debate, with prominent politicians, such as the UK’s Chancellor of the Exchequer Jeremy Hunt, expressing concerns about the denial of financial services to those who engage in lawful free speech. The BBC reported in early July that Farage's Coutts account had been shut down because he didn't meet the bank’s minimum investment threshold. However, this version of events was untrue. Farage had obtained a document (through a subject access request to Coutts) revealing that the closure of his accounts was in fact due to his political views not aligning with the bank's values. The CEO of the NatWest Group, Dame Alison Rose, was the source for the BBC’s initial incorrect story. Natwest, the owner of Coutts, is one of the major UK banks. The British Government bailed out the banking group during the Global Financial Crisis, and they still own 39% of the company. Responding to the mounting pressure, Dame Rose resigned on July 25, 2023. These unfolding events shed light on the challenges faced by individuals when financial institutions seemingly conflate personal beliefs with the provision of banking services. The situation underscores the importance of upholding freedom of speech and the need for transparency and accountability within the banking sector. Show notes: https://www.whatbitcoindid.com/podcast/the-debanking-of-nigel-farage This episode’s sponsors: Iris Energy - Bitcoin Mining. Done Sustainably Ledn - Financial services for Bitcoin hodlers 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

Samantha De Waal is a 12-year-old lifetime Bitcoiner. In this interview, we discuss her experiences as a Bitcoiner, including her challenges in being taken seriously as a young advocate. We also talk about the importance of considering children's needs and perspectives in the Bitcoin community and more generally in society. - - - - According to the United Nations, in 2023, there are approximately 2.4 billion people aged 0-18 years worldwide. This represents around 30% of the total global population. As they represent a substantial proportion of humanity, it is imperative to consider their perspectives. And yet, children and young adults find it hard to be heard in any of the debates on the major issues the world currently faces; these issues we are expecting them to handle in the near future. Too often we all belittle the views of those under 18. Anyone who has forthright opinions is deemed to be parroting a mentor's opinions rather than their own. Whilst it is true that life experience counts for a lot in terms of developing wisdom, those younger than ourselves have significantly important views and ideas born of experiences unique to those older than themselves. Generation Z, or Zoomers, are digital natives. Being born into a society rooted in the advances of the internet means that they are incredibly more comfortable with the digital revolution than previous generations. Such confidence only improves over time: the current generation, Generation Alpha, will exceed the abilities of Zoomers. And each generation is less encumbered with the traditions of the past and more open to change. It is from such young people that the solutions to the coming crises will emerge, including the impending economic crisis. It is therefore imperative that they are included in the important conversations that are taking place, and that they are given time to express themselves. For the Bitcoin community, this means giving space for discussion in podcasts, conferences and articles. It also means accounting for their specific needs to help them embrace Bitcoin. Show notes: https://www.whatbitcoindid.com/podcast/orange-pilling-your-kids This episode’s sponsors: Iris Energy - Bitcoin Mining. Done Sustainably Ledn - Financial services for Bitcoin hodlers 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  

Doomberg is an anonymous collective producing the world’s most popular financial substack. In this interview, we discuss the state of scientific research in the context of the potential game-changing implications that a room-temperature superconductor may have been developed. We talk about the framework for evaluating such claims, the importance of critical thinking, and a range of other current topics of debate. - - - - In the digital age, reducing the electrical resistance of conducting materials is one of the major problems scientists are working on; such resistance leads to energy loss in the form of heat, and thereby, the inefficient transmission of electricity and increased costs. The US energy grid loses about 5% of electricity through transmission lines due to such resistance, enough energy to power the whole of Central America 4 times over. The innovation that overcomes the resistance issue is superconductivity: the phenomenon where certain materials can conduct electric current with zero resistance so there is no energy loss due to resistance and no heat generation. Further, superconductors can carry electric current indefinitely without any degradation of the signal, making them incredibly efficient. Superconductivity’s impact on technological progress is significant. It enables the development of more efficient electrical systems beyond power transmission: it has revolutionized fields such as medical imaging, particle accelerators and quantum computing. It could also lead to breakthroughs in fields like transportation, where superconducting materials could create highly efficient electric motors or levitation systems for maglev trains. However, traditional superconductors require extremely low temperatures, often near absolute zero, making their implementation and maintenance expensive and impractical. If superconductivity could be achieved at or close to room temperature, it could herald a new technology revolution. So, when South Korean researchers recently announced the discovery of a new room-temperature superconductor material called LK 99, ‘X’ (i.e. Twitter) went crazy. However, there is a massive gap between claims of scientific breakthrough and peer-reviewed validation. Unfortunately, in this case, other researchers are struggling to replicate the original work. As such, whilst the excitement around such news is obviously merited, we need all to remain rooted in the methodical scientific method, which is predicated on scepticism. As Carl Sagan stated, “extraordinary claims require extraordinary evidence”. Show notes: https://www.whatbitcoindid.com/podcast/the-breakdown-of-trust-with-doomberg This episode’s sponsors: Iris Energy - Bitcoin Mining. Done Sustainably Ledn - Financial services for Bitcoin hodlers 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

In this interview with Parker Lewis, we discuss the book he is currently writing, the Bitcoin scenes in Austin and Nashville, the triggers for a significant shift in Bitcoin adoption, the potential effects of hyperinflation, and how governments may seek to regulate and tax Bitcoin. - - - - Everyone has their own Bitcoin journey. However, each journey takes a very similar route: cynical awareness, dabbling, investing, rabbit hole, awareness, getting burnt, realisation, all in, obsession. Gradually, then suddenly. The process explains the rationale behind hodling, but also, why adoption takes time. Bitcoin requires effort before the payoff can begin. Proof of work. Understanding Bitcoin also requires a fundamental change of perspective. Society long ago jettisoned the logic of adhering to a low-time preference; the modern consumerist fiat system is predicated on living for the now. The intellectual and moral hollowness of this approach is manifest in the multitude of major issues confronting our society today. We need a realignment with a more mature ideology best imagined by the famous Greek proverb ‘Society grows when men plant trees that they know they will never sit under’. This realignment may result more from necessity rather than an awakening: the seeds of hyperinflation have been sown into the economic fabric of most nations, and we’re starting to see the edifice crumble. Those who adopt Bitcoin first will be best placed to weather the coming storms. There is a flip side risk for those who hold Bitcoin. History is littered with examples of the state confiscating private wealth. This risk is obviously most acute when the state’s coffers have run dry. The fact is that global debt is now at an all-time high; further, deficits keep increasing. Now, with rising interest rates, debt levels are becoming unmanageable. A reckoning is coming. Prepare accordingly. Show notes: https://www.whatbitcoindid.com/podcast/will-blackrock-be-bitcoins-suddenly-moment  This episode’s sponsors: Iris Energy - Bitcoin Mining. Done Sustainably Ledn - Financial services for Bitcoin hodlers 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