Andrew Schulz's Flagrant with Akaash Singh - Crypto Guru Says "Bitcoin Will Hit $1,000,000 by…" ft. Anthony Pompliano | Flagrant 2

Episode Date: March 18, 2021

Bonus ep this week! 4:26 What is money? 10:40 How COV!D impacts Crypto 21:00 Inflation explanation 28:09 What is the blockchain? 36:00 Bitcoin mining is the strong computer network in world 38:40 What makes bitcoin valuable? 43:40 Is bitcoin a usable currency? 55:22 Does the US government have a stake in bitcoin? 1:04:15 NFT convo 1:24:19 do we need the stock market anymore 1:38:29 Bitcoin can’t be hacked 1:47:56 Would you rather buy 60k or a bitcoin 1:58:30 can bitcoin become too valuable? 2:08:16 how can we buy illegal things with bitcoin 2:25:35 how should a 24 year old invest in crypto? Flagrant 2 is a comedy podcast that delivers unfiltered, unapologetic, and unruly hot takes directly to your dome piece. In an era dictated by political correctness, hosts Andrew Schulz and Akaash Singh, along with AlexxMedia and Mark Gagnon, could care less about sensitivities. If it’s funny and flagrant it flies. If you are sensitive this podcast is not for you. But if you miss the days of comedians actually being funny instead of preaching to a quire then welcome to The Flagrancy.

there's now a trillion dollars of value at stake i never actually said it publicly so here we go uh i think it's gonna be a million dollars by the end of 2026 wow i just want to make sure bitcoin isn't another iraq war the fuck do you want me to buy i don't even know why i'm listening this motherfucker i'm up 14 today i'm actually a point 14 what's up everybody yes i'm wearing something different don't worry about it today we have an incredible guest okay crypto expert twitter troll anthony pomps pompliano uh this guy's amazing the guy has 96 of his wealth in crypto bitcoin specifically so who better to explain to us why it's the future than the guy who is betting his entire future on that coin?

This episode is about explaining what the fuck is going on in the crypto world. Now, in order for me to understand that, I first got to understand what's going on in the non-crypto world. I wanted to understand what money is, right? What's the difference between money and currency and just basic economic information? You might be way smarter than me and not need that. So you could jump to around, I don't't know like 28 minutes in where we start the crypto blockchain nft conversation and uh but if you're like me and you want to get a nice little background information

on how an economy works you can start listening right now all right enjoy what's up everybody and uh welcome to flagrant 2 it's your boy schultz we got akash singing to bill and alex media mark gagnon the truffle is here miles is even here we have a very special guest um i could i should read off some credits you know uh you're here for one reason i just want to let you know because i will not have my friends get rich without me that's the only reason we're having this conversation i could give a flying fuck about crypto but all my friends are invested they're invested early and i'm on this group chat and they i'm putting 200 in a week i'm putting 100 thing in this that the other what do you think about decentralized i don't even know these words and i'm getting so furious that i was the most wealthy of all my friends and now they're going

to be richer than me without working at all well if you've got friends that only are putting 200 and we gotta get you new friends i need to get new friends. But this is very important. This is fantasy football for me. So this is very important that I cannot let them get rich. So it's not about the money. It's about winning. If it went to zero, I wouldn't care about it. All right.

I hope it goes to zero because I haven't put any money in at all. I swear to God, today I put $60,000 in a Coinbase account. Okay. You have until the end of this podcast to convince me to buy a whole Bitcoin. I mean, by the time that we're done, you're going to put $120,000 in the Coinbase account. I'm just saying. I'm just saying. Wow.

He just cucked you on your own podcast. He really did cuck me. That's point one. I'm getting it from all angles, dude. Okay. We have in the building, Anthony Pompliano. Pomp, you talk a lot of shit on twitter i absolutely love it i had a few people reach out to me about you a buddy of mine greg norman jr i don't know if you know him personally but he knows about you he's like you got to get this guy pomp

on he's talking all this shit on twitter he's calling his cnbc you got these fucking nerds these finance nerds that are so upset about you. I watched some interview and there was this finance Dexter just going, oh, but it's not worth anything. And you're just smiling with your perfectly framed eyebrows, just laughing at this guy as he blows a gasket. What was the guy's name? Which one of them? It was so funny. You just sitting there smiling as Bitcoin is going to the moon and this guy's losing his fucking shit. That's all you have to do to the haters. If you just smile, they get real pissed off. They get so pissed off. And that was me.

I was him because I wanted to fail. But here you are. Okay. I am an absolute crypto baboon. Okay. And I think that because of how fast crypto has taken off, there are people like you that know so much about it. My friends that know so much about it. my friends that know so much about it, and then there's this massive wealth, not wealth, intelligence gap, if you will,

between the people, and soon to be wealth, between the people who know nothing about it and the people who do. All right. So I'm hoping to actually learn some shit about it. So we're going to have no fun and all learning? No fun, all learning. All right, fuck you. No fun, okay?

I'm sorry. You can come back for a fun one after I make a lot of money. Once I'm rich like my friends, okay, then you can make a lot of money. So here it is. Number one, what is money? That's actually a great question. Yeah, that is actually the place to start. So you're already ahead of most people.

I know what I'm doing. I've listened to some Tim Ferriss. So when you think about what is money today, most people think of the US dollar, right? But it's important to separate out a currency and money. So first, a currency is two things, a medium of exchange and a store of value, meaning that I give it to you, you give me good or service in exchange. We both believe it has value. That's medium of exchange. And store of value means that I save in it and it's not going to disappear overnight. Okay.

All right? So I use the U.S. dollar as a currency because historically money has been sound money, which is outside of the system, and it can't be created by any group of people, any individual, any organization, et cetera. Give me an example of sound money. Gold has served as sound money for thousands of years. Got you.

And if you think about gold and the dollar's relationship, gold's hard as shit to use for anything, right? It's heavy. Got to break it up. If I want to mail it to somebody, if I put it on the table and say, how much is there? You look at me like I'm crazy. You get a scale.

It's got all these issues in terms of medium of exchange. But it served as a great store of value. So over time, in a very overgeneralized way, the way that we started to use sound money easier was we created paper claims on top of the gold. So gold was layer one. We said, well, I'm not carrying around this fucking gold. I'm going to go put it in the bank or a vault. And they're going to give me a claim and say, hey, whenever you want the gold, come back and give me the paper.

Which group of people you think invented that? That's why he's trying to talk on the podcast. You all read him. Okay. I'm not going there. You guys can cut to whatever you want. So basically people walk around these paper claims, right? And they would say, hey, we can now exchange the gold that's sitting in the vault, but

we don't actually have to move the gold around. So the idea was I'm going to store my gold in the vault because it's too heavy for me to carry around. And then the vault dude was like, hey, I got your stuff. You want me to just give you some slips that prove how much stuff you got? And then you can buy things with that. And then if those people want to come collect the gold,

they can just come. So cash is really only formed because it's convenient. So that was like very simplistic, over-generalized way of looking at it. In 1971, basically they decided, the President of the United States was like, hey, temporarily I think it would be a good idea where we're going to just create more of the dollars and we're not going to have it pegged to the gold anymore. Because you couldn't just create the paper without having the gold in the vault.

Well, as anything with the government, nothing's temporary. We'll get to probably a lot of that later. And so we just never went back. So we removed the gold standard. Who was that? 1971. Yeah. Nixon, right?

Removed the gold standard. Okay. And so when you do that, now all all of a sudden you don't have sound money so now the currency is viewed as money right but the problem is that the government every government around the world has this benefit or problem depending how you look at it where they can just create as much as they want right so literally you and i we can't go into our bank account if i'm like shit i got a hundred dollars and i need 150 i can't just edit the shit and say now i got 150 right the government can do that right i could take a loan out for 50 yeah right and then you'd have 150 and then i have a hundred but you got to pay it back and technically isn't that what

the government do i does i don't want to get into too much nuance about the Fed and stuff, but isn't that what they're doing? Aren't they taking a loan out of money? There's a lot of nuance. It's not even worth it. The big takeaway is that the government can create or contract the money supply as they want. So expand or contract as they want. So all of a sudden, anything happens is like if you give somebody a money printer, what are they going to do? They're going to fucking print money.

Yeah, this is the STEMmy of course okay so when you start to think about like what is money we all view the currency the dollar the euro the yen whatever as money but it's not really sound money right and so what that ends up doing can i be honest with you yeah are you confused already no no i don't view any other currency as money except the dollar that's probably i think it's cute yeah and it's fun to hold the money. If I gave you euros, what would you do with them? If there's a girl on it, I don't believe in it. If the queen is on it, it's not real money.

It's worth at least 30% less, but there's no way I'm actually believing in it. I'll put this shit down on a Monopoly board to buy Baltic Avenue or something. Exactly. This is for Baltic. Not even Boardwalk. To be fair, most of the world also feels very similar in that they want dollars they want that the dollar is the global reserve currency because it's kind of backed in a weird way right like isn't it back yeah like like there's other countries in the world that basically say

like we have our own currency but like it's pegged to the dollar right or other current other countries around the world are like yeah what's the u.s doing with their monetary policy like we're going to do something similar because we we got the boys, right? Because it's backed by, you know, the guns, and they don't carry gold AKs. They, you know, drop big bombs and shit, right? Yeah. But also, you could make an argument that it's backed by

the purchase of gas, right? Of oil. So, oil is definitely a big piece of this. So, the whole idea is that oil is priced in dollars. And I think purchased in dollars, right? At least if you're buying it from... Of course, if you price it in dollars, you can't give them something else. uh is that oil is priced in dollars and i think purchased in dollars right at least if you're buying it for if you price it in dollars you can't give them something else you got to purchase it in dollars right so the whole idea is uh if it's priced in dollars purchased in dollars then the dollar is going to be the global reserve currency

oil runs the world uh there's been a couple of guys who've decided that they didn't want to you know price things in dollars anymore what happened to those cute puppies right there that tried you're gonna have to go six feet under to find them i'm trying to get cute so uh the whole idea of pricing oil not in dollars is not very sustainable idea for people uh but long story short it's just like we took ourselves off this gold standard everyone around the world did it now you have governments that can create and contract the money supply the the argument for doing it is that when bad things happen, we have a response. We can act. We can manipulate interest rates. We can create money, do all this super complex finance mumbo jumbo. At the end of the day, what it does is it manipulates the market. So let's use a real

example of what's happened over the last 12 months. In February, people heard about this coronavirus thing. Most of us probably were like, the hell is this thing? Like, I'm still going to the club. I'm going to the bar. I'm doing whatever. March comes around. In New York, all of a sudden, they're like, yo, some dude from Rochester keeps coming in to Grand Central, and he had coronavirus.

And I remember Googling and being like, oh, there's 750,000 people in Grand Central. They're never going to control this thing like this dude with coronavirus just came through grand central 750 000 people and they're like all right i don't know what happens next but like something tells me it's not going to be good and within like a week they were like we're shutting everything down yada yada whatever everyone go home so literally when you think about an economy it's all about velocity of money right it's just how much do we continue to do commerce with each other? How much do you invest?

How much do I buy from you? And as you have that velocity of money, that keeps an economy growing, keeps the economy going. But if you tell everyone, yo, time out, go home, and stop doing shit with each other, velocity goes down, right? And bad stuff starts happening. By velocity, you mean like consumption, right? We just need to keep on – Cons just everything because the shark needs to swim to breathe and the comedy needs to spend in order to needs to be velocity of money exactly the only real transactions we increased were like amazon that's pretty much it right digital businesses

took off we're not eating out we're not traveling we're not doing there's no transfers of money yeah except amazon that's it right, right. So basically what happened. People did really well, not everybody. Well, so here's what ends up happening. As soon as you get the lack of velocity of money, you basically expose all the problems in the system, right? Because the velocity of money keeps things going. So imagine if we just were,

we just passing money around to each other, right? And I knew that I owe him money, but it's cool because you're going to give me the money. And as long as we keep that game going, everything's good. I'm always going to do it's cool because you're going to give me the money and as long as we keep that game going everything's good i'm always going to do it but what happens when you stop giving me the money yeah then i stopped giving him the money then he stops giving the next person the money the buck stops somewhere just the whole thing starts to shake so what ends up happening is in 2008 and last year the government elected officials federal reserve all the you know smart people in suits, ties, and cologne, they all get together and they basically are like, yo, we're going to save the

day. The problem is that when they step in to save the day, they only have two tools, right? So if you're a central banker or you're an elected official, you basically can manipulate interest rates. Think of that as the incentive to borrow money, right? So if you got to owe back a lot of money, you're not going to borrow a lot, right? if i owe you 10 of every dollar i borrow from you i'm not borrowing money but if i owe you nothing i'm gonna borrow it all i'm gonna borrow as much as i can they're literally gonna give me free money like the fuck do you want me to buy right the money's good it's got it's a u.s dollar it's not any other money like i'll borrow it all day long. Increasing velocity of transaction. Exactly. So they literally in March of 2020, they did two emergency rate cuts. So this is when it started to get crazy because basically they have these periodic meetings,

right? And they come out and they have these press conferences and our entire monetary policy system is like the most dinosaur antiquated thing in the world. They're literally out here saying, we're going to wait to watch what this guy says in the press conference. If he uses the word dovish, then like, we're going to do one thing. this guy says in the press conference if he uses the word dovish then like we're going to do one thing if he says his other word in the press conference we're gonna go do this other thing it's nuts so what ended up happening was they couldn't wait for the next meeting to go ahead and make these decisions so twice that emergency rate cuts meaning we're going to issue a press release we're cutting the rate and they did it twice and they cut us to zero percent yeah free money yeah game on people went for it well it started that way

but that wasn't enough so then what they said was oh on top of that we're going to create a bunch more money and we're just going to start stuffing liquidity into the market so they bought corporate debt is that that's way later okay basically all they said was we're going to create all this money at first it was you know a couple hundred billion dollars which doesn't sound too crazy today but like that's a lot of money i don't have a couple hundred billion dollars, which doesn't sound too crazy today, but like, that's a lot of money. I don't have a couple hundred billion. I don't think anybody else here does. No, you might. And then, uh, all of a sudden they did another trillion, but it was $2 trillion. Then they did more than they did more than more. Now, to be fair, part of the problem. And early on, I was saying things that people were literally laughing at me.

They were like, you're fucking crazy. I wrote a piece in like maybe second, third week of March. And I said, we're going to have as bad as unemployment as the great depression here in the United States because of this. And people were like, that's nuts. So I went back and I looked and it basically the way that the great depression is a five-year period. We went from like historic low unemployment of two, 3%, whatever it was up to 22, 23, 24%. Right. But it took five years to play out. And so what you look at is the first year it was, you know, 3%. Then the next year was like 8%. The next year was like 15%. Then the next year was like 21%. We went from fucking two and a half percent or 3%, whatever we had in February of 2020 to over 12% unemployment in this country

in a matter of weeks. the most number of people who had ever filed for first-time unemployment claims in the united states before 2020 was like 820,000 people back in 1982 right something somewhere around 800,000 people yeah there was 6.6 million people who filed for unemployment in a one week in march and the reason why i think it was 6.6 was literally because they couldn't process more than that like literally there was multiple weeks where it was 6.6 like how the fuck was always 6.6 i literally think that you couldn't process more unemployment claims that quickly people were on the website like yo process this shit and the website was like we broke like we can't take any more people wow so it was an extreme

economic event you're saying even the 12 unemployment whatever might have been underselling it just because oh that's the official numbers i mean the the unofficial numbers like if you're a freelancer if you're a uber driver whatever like you're not considering employees so like a lot of times depending on how you count all this shit right so long story short it's bad economic event small businesses are in trouble all this stuff and it was compounded because it wasn't just like oh there's a little bit of velocity of money that's slowing down then they were, it's bad economic event. Small businesses are in trouble, all this stuff. And it was compounded because it wasn't just like, oh, there's a little bit of velocity of money that's slowing down.

Then they were like, it's illegal for you to run your business. It is illegal. We literally are going to come and find you, arrest you, like all this shit. Like, the fuck out of here. It's illegal for me to run my business, to make a living.

It is illegal. We're going to outlaw you making a living, right? And so remember, 55% of jobs in America are from small businesses. Over half the jobs in America come from small business owners. And so when you look at that, you say, wait a second. You're telling me that half the jobs in America now, you're telling the people who employ those jobs, it's illegal. You cannot run your business.

You cannot have people come in person. So as you mentioned, if you're Amazon, if you're a digital business, you're good. People are sitting at home. They got all the time in the world it's great for you podcast downloads explode like all this stuff right yeah but if you're a restaurant and you got no technology to do online delivery you're screwed yeah right and so what ends up happening is the government stepped in when the government stepped in they basically said we're just gonna start handing money to everybody so they were doing ppp loans they were handing out uh doing bailouts like all this crazy shit. And the reason why myself

and other people got so pissed off was you're looking at businesses. Take the airline business. This is the wildest shit ever. For 10 years, the airline companies basically said, we got all these profits. We're making so much money.

And they were taking their profits and rather than saving it or investing it in R&D to make their businesses better they were taking the dollars they were buying back their stock r&d is research and development yes yeah i'm just making sure people don't think it's a stock that they're like i gotta get an r&d it is not a stock a lot of dumb people listening yeah that's all right i'm dumb too so we're all friends that's why we're talking about us this is this is why we're all friends so long story short

is basically somebody like the airline company who had taken 80, 90% of their free cash flow, right? Basically the money they made and they're buying back their stock and their executives were getting rich. Then the second this all happened, rather than say, oh shit, we're going to go bankrupt and we either have to go raise what they call equity capital, meaning somebody's going to invest in our business so we can pay our employees, all this stuff or raise debt they ran to the government begging for a bailout and so it's like wait a second the government is the idiot in the room here because

there's no investor in the world who's going to give them the terms that the u.s government gave them the u.s government gave these people hundreds of billions of dollars and said by the way a third of it at a minimum you don't have to pay us back free money yeah it's a said, by the way, a third of it, at a minimum, you don't have to pay us back. Free money. It's a good deal. By the way, we should have been in the fucking airline business. They would have given us hundreds of billions of dollars for free. What the fuck is going on here? Is that kind of a thing the banks proved in 2008, though,

where it's kind of a leverage play? What are you really going to do? You're just going to let the airline industry shut down? Government? Then what? But here's the whole thing. What we found is, and this is a big misconception about bankruptcy everyone's like oh my god don't let them go into bankruptcy like what are we gonna have no fucking planes like no when it goes into bankruptcy it basically is somebody saying yo i need protection because all this is going to go away what happens is the assets don't go anywhere right the assets get bought by somebody else

capital is reallocated somebody else comes in and runs an airline they may change the name or do something else but it's not like the airplanes fucking disappear right it's not like all those employees all of a sudden they don't have jobs anymore right there's there's uh reorganizations they may go to a new airline whatever and so basically just the government panicked right and they just kept printing money they've done this three times now six trillion dollars the federal reserve's um asset base right has basically gone up over a hundred percent now i think in the last 12 months yeah so 40 percent of all dollars that exist yeah have been printed in the last 12 months yeah i think they printed more money than they collected in taxes last year you want to hear a fucking crazy stat yeah since 2011 the u.s government was crazy but yeah the u.s government collected more revenue yeah from federal income tax every

single year since 2011 yeah so it's like a business they're making more money every year yeah but at the same time every single year what they call the intra-year deficit basically are you positive or negative on your balance sheet of the year has gotten bigger and bigger meaning although they're collecting more money every year they're actually losing more money still finding a way to lose money so guess what that's not a fucking income problem that's a spending problem yes yes but then you could go back to your earlier point which is we need to spend we need the velocity so is that good but but we don't need the government to spend we need you to spend we need you to spend we need me to spend if if the government gives me money to spend or if the government spends it itself so here's the here's where all of this is frankly just bullshit yeah

right and i don't want to get too much into minutiae of this because i do want to talk about crypto but this is just to give us like a baseline this is the most important part of what i'm gonna say seems like and i don't support the way the government spends its money but it seems like they're in between a rock and a hard place you need the economy to speed up we how the fuck else can we do it basically think of it as a short-term versus a long-term solution yeah if you optimize for the long-term short-term pain if you're a politician guess what happens you don't get paid for making good sound long-term decisions you get paid for fucking helping people today and And guess what people love to hear? I'm going to give you free money.

Yeah. This is a shout to Andrew Yang. This is, he's going to be the mayor of New York because he said, I'll give you a thousand dollars. So a term that we hear. Wait, wait, hold on. Hold on. We got to get the most important part, which is this whole idea that they're giving you

the free money. So if I give you $5, right? And I'm like, yo, buy that coffee and i'm gonna give you the five dollars to do it but also when i give you the five dollars that coffee now costs six dollars yeah i actually didn't help you i fucked you yeah right because what i'm doing is the cost of goods are going up so here's the the biggest sham of it all is that there's something called official numbers of the government reports government comes out it's like oh look inflation is this number unemployment is this number and then everyone basically behind closed doors that's

like in the know yeah like yo but like the unofficial numbers so like what the fuck is the unofficial inflation number the official number is like 1.4 but like the unofficial number is like five or four yeah i don't see how you can keep printing money without massive inflation so i guess my curiosity about inflation again i don't want to get too much into this i want to get to crypto yeah what am i talking about like super like serious shit i thought i was coming to have fun this is good i like the fact this is serious now my my curiosity about the inflation is my understanding about inflation is it's not about the printing of money you get inflation when there's more money than there are things to buy

kind if we're making it in its most simplest term yeah and because there wasn't that velocity of the economy earlier the increase in money just has to match the velocity that the i guess the fed wants here's a simpler way to think about it as you create more money you devalue the thing you're creating right right? So if something's scarce, there's less. If something's plentiful, it's worth less. If you take the U.S. stock market from 1971 and you denominate it in dollars, it looks like a perfect line up and to the right at a 45-degree angle, right?

There's dips along the way, whatever, but it's a 45-degree angle for decades. If you denominate the same stock market in gold and sound money, the stock market's down since 1971. So is it actually that the stock market's acc since 1971 so is it actually the stock market's accruing value or is the dollars being devalued because a fraction right a share versus a dollar that's a bar so here you're ready for this yes that fucked me up dude this this is why the wealth inequality gap gets so bad right so this forget all bitcoin forget all stuff the number one thing

people need to understand is the richest people in america know one secret and it's don't hold cash invest hold investable assets that's all i do is hold cash literally all i've been kind of telling you this is all i do for years i've been telling you oh my god but you're still much richer than me so don't worry about it but for years i've been telling i want to keep it that way that's why we have anthony yeah yeah 100 you told me that you have almost one whole bitcoin and i i literally let me tell you something i can't listen to tim ferris's podcast immediately i was like i didn't know what the fuck i don't know i was absolutely furious and then mark reminded me it's like yeah i think i got this all in on bitcoin i was like it's at 60 000 actually maybe a good segue into bitcoin buy another shirt i can't

all my money's in bitcoin what do you want from me no but literally i'm such a fucking baboon with money i just i keep it in this in my bank account i even tell my business manager i was like no don't put it anywhere yeah but but think about this right you're financially incentivized not to hold cash so they're devaluing all i do is hold the cash they tell you right the official numbers are hey we're going to devalue it on average about two percent a year yeah right so if you have a hundred dollars you're losing purchasing power every year if you hold for five years right it's worth less and so the idea is so valuable that you have two you have two options if you know the dollar like think of it as a melting ice cube right and you know your cash is losing its purchasing power

you can either do one of two things you can exchange it for goods and services you can consume velocity of money let's fucking roll let's make the government happy or you can invest i don't want to fucking just spend it and own some bullshit thing that's not gonna be worth more money in the future i want to buy real estate stocks precious metals bitcoin whatever so what ends up happening is that the bottom 45 of americans have no investable assets they own nothing they are you you are the bottom 45% of Americans, maybe not in net worth, but in mindset, right?

And education. That's the most insulting thing I've ever heard on this podcast. Keep going, Anthony. So the bottom 45%, when this happens, basically the money's being devalued. Literally 45% of Americans

are getting poorer and poorer over time because their net worth, their paycheck to paycheck, all their cash is in the bank. It's losing value. Rich people are sitting there. guess what happened when they were printing all this money the stock market went to the fucking moon because people like i got to get my money out of cash because they're just printing liquidity everywhere guess what else went up yeah

gold bitcoin real estate all investable assets go up because they're devaluing the dollar and so the other component of this that makes it even worse is that if you're in the bottom 40, 50% of Americans, the goods you consume, the things you buy are super inflationary. You buy gas, you buy food, you buy all this stuff, right? People at the top on a percentage basis, the amount of money they spend on gas and food is like minuscule compared to the investing they do, if you're rich you do a lot more investing than you do consuming gas and food if you're not rich you spend an inordinate amount of your income on rent gas food etc so guess what's been happening food prices have

gone through the fucking roof gas prices have gone through the roof right all this stuff so literally the bottom half of america is being put in a worse situation than the top half. Yeah. They say, sorry to interrupt, but they say, I think they say like poor people spend, middle class people save, rich people invest. That's a great way to think about it. But it would seem the middle class people, as the dollar loses more and more value, like you said, it's a melting ice cube. So their savings is worth less and less. And that's how the wealth gap.

So the most egregious example of this is in countries where there's hyperinflation right we don't have hyperinflation in america i don't think hyperinflation is coming anytime soon right but if you look at a hyperinflationary uh environment let's say like venezuela uh zimbabwe etc you could literally start the day off and you're like you want that that a cup of coffee it costs the equivalent of five dollars and by nighttime it costs ten dollars whoa and you're just like yo you're just watching this shit fall like literally they're changing the prices as it goes i have in my wallet right now yeah uh i think it's a 50 million dollar boliviar uh uh yeah you know bill and i think it's a hundred trillion or one trillion dollar zimbabwe bill wow like they used to not have

that now they have that why because literally the dollar got devalued those currencies got devalued so much that they literally had to create bigger and bigger denominations yeah so you can actually carry it around you've heard the stories about this like uh i think in the south during the civil war they they created a the south created their own current currency and then people were like wheelbarrowing them down to the store to get course yeah okay so a term you hear often uh when we're speaking about crypto but also regular currency is a fiat currency what is a fiat in your face again when you said no no because the way you're saying it so no so fiat literally is just some smart term somebody made up all it means is a government-backed

currency that's it that they can create you can print as much as you want you can the government controls it got you okay unlimited supply government controls it us dollar fiat currency sound money nobody controls limited supply got you okay now this is like a fucking spelling bee right i know this is great so bitcoin comes about bitcoin is fueled by technology called the blockchain or blockchain technology whatever it is what the fuck is the blockchain i need to know what this is all right laughing don't you let it go let it go listen yeah so uh let's start with blockchain technology yeah blockchain technology was created to solve a problem called the double spend problem so you gotta understand the problem to understand the solution.

If I create music and I put it out in a digital format, it's a music file, right? You have the music file and you're listening to the show. You're like, damn, pop is a fucking banger. Yeah. Andrew wants it. He's like, yo, send me the song. You hit send. When you hit send, the computer program creates a copy, sends him the song.

He's now listening to my song but you still have my song as well you both can listen you're both happy you're like yeah we can listen to the cool song right but you and you don't know who has the original and who has the copy all you know is you got a file you got a file that's fine when it's music that's fine when it's a photo that's fine when it's all these things that it doesn't matter about scarcity but with money if i have a fucking digital dollar and you say send me the dollar and i send you it and now you got it and i got it well who's got the dollar who's got the real who's got the counterfeit we don't know and so there's been a bunch of people over the years who've tried to

create digital currency but this has been the big problem is the file can be replicated easily and you can't prove what the original is so that that's called a double-spend problem. He could send it to you and then send it to me, and we both think we got the dollar, but actually we just got copies and he still has the dollar. Seems like a problem. Isn't this how banking works to a certain extent? Let's not go there.

I don't want to spend too much time, but isn't that the whole idea of, if the bank only needs to keep 10 of the reserves in the bank and there's a hundred thousand dollars can't you lend out 90 to him and now you just made 190 well you just made well no but you thousand dollars out of nowhere so there's leverage there's all this complexity but basically what they're doing in that situation is they're not creating new currency what they're doing is they're bar they're borrowing it or you're depositing it with them and they're lending it on the back end and they're doing all this stuff but technically is that your money is in an iou that they have like you've made more out of nowhere no because you gave them some money then there's leverage they can borrow they can do all this stuff

the key to this is counterfeit versus original i understand that i understand i just i just think that the idea of like printing money isn't that novel because like if you're if you're oh banks want to be central banks. We can get into that. No, no, no, no. Let's keep, see if creepy. But like, let's say I give you a hundred thousand dollars to keep in your bank, your Bank of America, and he wants a loan.

You could give him $90,000 of my a hundred thousand dollars, but I can get my a hundred thousand whenever I want and he can get his 90 whenever he wants. You just made 90,000 out of nowhere. So when you give me the money, a lot of people don't know this. It's not your money anymore. What? When you deposit the money in't know this it's not your money anymore what when you deposit the money in the bank it's not your money they they have an iou they owe you a hundred thousand dollars but technically it's their money now oh shit all right let's get back to blockchain ready so that's a fact so you're ready yeah that's fact so look here's the whole idea of a blockchain is uh if we sit down and blockchain verifies the

original at a very high level but here's how it works let's say we go to play monopoly is the best way to describe it four of us sit down to play monopoly and uh with monopoly there's a bank and then each of us have the money in the game and we set it out in front of us right and the way the reason why monopoly works is because as we are doing transactions you owe him money bam i see you hand him the $200. He hands me the money, right? All this stuff.

We don't need a fifth person to stand over us and act as the banker or the centralized entity who does all the transactions because there's full transparency, right? If you ever play with a kid and they put the money under the table, you're like, yo, yo,

yo, yo, get that shit up here. Like, I don't know what the fuck you're doing, but I don't trust you. Right? So when the money's,

uh, transparently put on the table and then all the transactions happen in front of everybody we all don't have to trust that it's being done correctly we can verify i saw you give them the 200 i know yeah so a blockchain basically is if we were playing that game and we had a piece of paper and i wrote down every transaction right i said yo i gave andrew 200 right you here so it's a ledger ledger but every 10 minutes I ripped off the piece of paper and I put it to the side and I said, all right,

that was the first 10 minutes of the game. That's all the transactions that happened. And then all of a sudden we say played for the next 10 minutes, started a new piece of paper, did it again, bam, done. I rip off that piece.

I stack it on top of the first 10 minutes. We keep playing. We've been playing for 50 minutes. Now there's five pieces of paper sitting over here and you go, you know what? I think that you owe me $30. And I can say, no, actually, in minute 32, let me go back to the transactions

and I can show you that I gave you that $30 already. That's essentially what a blockchain does. But rather than it be on paper, what it does is every 10 minutes, it takes all of the transactions that happen on the Bitcoin network and it basically puts it into a block. So it's literally, just think of it almost like

in an overgeneralized way, an Excel file of all the transactions. And then there's people who run the network. They validate, yep, looks good. And as long as more than 51% of people validate it, they chain the block of transactions to the last one, and it goes all the way back to the beginning. So from January 3rd, 2009,

you can go back on a blockchain and see every single transaction that's ever happened in this network so it's literally blocks of transactions that are chained together bitcoin block potentially really stupid question is that hackable so uh can it ever be hacked any computer network quote unquote could be hacked the probability that it, quote unquote, could be hacked. The probability that it gets hacked is near zero because it is the strongest computing network in the world. And the whole idea behind the Bitcoin network is that it's decentralized.

Yes. So when I talked about us playing Monopoly, if there was a fifth person who was like the boss of the game, then that would be like the centralized, that'd be like the bank, right? And so today, if I want to send money to one of you through the US system, a bank says, I'm going to debit Pomp's account and I'm going to credit Andrew's, right? Yeah.

But what if we don't need them? A peer to peer. I just want to send it to you. I don't want anyone else to fuck with it. I want to just send it to you. So decentralization means that there's nowhere to hack it. 51% consensus in order to put it on the blockchain yes what is that 51 of whom so the way that it works is um there's miners around the world this goes to decentralization

so if there's not a centralized company that owns this thing who runs it well there's people running the software they have specialized computers to give it like a data center right they plug them in and what they're doing is they're they're running all these computations super complex process we don't need to go into what they're doing exactly problems right solving problems rewarded for solving the problems there's a financial incentive so every 10 minutes in the beginning 50 bitcoin were given out to the network and if you were running computers you had a chance to get some of those 50 bitcoin every 10 minutes if you solve enough problems you get rewarded for the you get rewarded gotcha azure you know more than you're letting on as you're doing this what ends up happening is uh that went on for four

years every 10 minutes for four years 50 bitcoin after four years programmatically meaning it was written into the code it cut from 50 to 25 so what happens if you have a fixed supply yeah yeah and demand keeps going up and the supply incoming supply drops the fucking price goes up my it correct me if i'm wrong here uh now that there's less are there more problems that you essentially have to solve in order to access a new bit of coin in other words does the processing go up to mine a new coin it so uh along with the in a way the better way i think people that are kind of learning about all this to think about it is the more competition there is yeah for the bitcoin reward yeah uh the more work you have to do yep the other thing is that there's less bitcoin so went from 50 to 25 25 to 12 and a

half 12 and a half to now 6.25 yeah Eventually it'll get cut in half again in about three and a half years. And this is to maintain value along with demand. Think about a visa. When visa runs the transaction or, you know, the visa network, we pay for it. We and the merchants pay for it to use the system. All of that revenue goes on to a centralized P&L, right? Like into their bank account. It sits there.

And if you're a visa shareholder, that's part of your money. All of that revenue goes on to a centralized P&L, right? Like into their bank account. It sits there. And if you're a Visa shareholder, that's part of your money. Yeah. Well, when you have a decentralized entity, where does that go? The transaction fees plus this Bitcoin reward basically gets distributed across all these people running the network. So you today could go become a quote-unquote owner in a sense, right? Of a portion of the revenue of the Bitcoin network. You got to go get a computer, you plug it in, you point it to this network, you start running the software.

And now all of a sudden you're one of millions of miners around the world. And every time a new person joins to get part of this revenue, it becomes more and more decentralized, which means that whether it's the government, whether it's a hacker, whether it's whoever, they have to basically penetrate everybody. They can just or 51 of people right they can't just penetrate your computer or your computer they got to get more of the control of the network and that's what makes it so secure and my understanding is that it takes an immense amount of processing

power to mine for this bitcoin a ton a ton it's the strongest computing network in the world meaning if you take all the computing power that's pointed at this thing and running the software, it's by far the strongest network in the world. Okay. Now, what happens, and this is not me trying to poke holes. This is literally me just trying to understand it. What happens, I mean, the processing speed of computers has increased exponentially over the last decade, right?

What happens if we get- You sound like a fucking technologist. Go ahead. Okay. Now, maybe I know something. So what happens if we get a computer whose processing speed is faster than the inhibitor of the blockchain? So in other words, it can mine so quickly that it can scoop out a bunch of Bitcoins that the program was not thinking we're going to get scooped out. What is the protection for that that so there's a couple of different things you're asking about one is there's still only a certain number of bitcoin that are put out in a period of time so it's not like you know there's a honey pot you can just go grab all the bitcoin immediately right

uh from a conceptual standpoint uh the second thing is quantum computing which would be a super complex high-powered computer whatever that was always always talking about. Yeah, yeah, yeah. One is, as the nefarious actors with technology increase, so does the defense, right? Like technology is a cat and mouse game between bad actors and like law enforcement, for example. Right. So who's the first to adopt all this technology? Porn. Porn, criminals, right?

All these people who- I heard about Bitcoin because there was a drug dealer who was worth like hundreds of millions of dollars in Bitcoin in 2010 2010. yeah yeah so so basically what ends up happening is as those quantum computers uh get created there will be defense against them one and the bitcoin network continues to get upgraded the software whatever but more importantly is the game theory so what makes bitcoin valuable there's 21 million demand is increasing and no one's ever hacked it. The second everyone, somebody hacks that Bitcoin network, most of the value is going to be lost or it's

going to drastically be reduced. So if you go in and you steal all the Bitcoin, like you hacked actual network, I don't hack your wallet, but I hacked the network. All of a sudden, the economic value of the network drastically drops. And so I would have to be a non-economic actor, somebody who doesn't care about the money to do this. And so I would have to be a non-economic actor somebody who doesn't care about the money to do this and so i would have to some other purpose for going to do it but if i had a quantum computer i'm not fucking hacking the bitcoin network there's a lot of other shit i'm going to hack because i might actually get the money and the value that i can get rather than the bitcoin network right okay so let's say it's secure sorry let me say so let's say it's secure i assume it's secure that's totally fine the only other outside influence that i could

see negatively affecting bitcoin and i'm speaking about bitcoin as if it's all cryptos it's not i know it's not but i'm just speaking about it in that way it's just easier right but we can get to the what are they called alt coins or something let's just stick with it yeah let's have a bitcoin for now because you're more invested in bitcoin right what do you got 90 of your wealth in bitcoin 95 95 okay so let's promote bitcoin it's like 60k okay if it's 60k get the fuck out of my studio okay i need multiple commas buddy all right so let's say for example and i heard this is kind of happening different parts of the world i think india actually there's legislation that might be passed where they're going to limit people from having bitcoin making people divest just say they're trying to ban it they're trying to ban it pakistan did ban it but we don't we don't talk

about them that's true i think you know nigeria pakistan a number of other countries have all banned it india is talking about it now right basically what ends up happening is you can't ban a inanimate object right like if you pick up that hundred dollar bill you start screaming at the dollar don't give a fuck right what you can do is you can ban us from holding it using it transacting in it trying to buy it whatever yeah so a key piece of regulation is the asset itself is unregulated not in a negative sense but it's just like the dollar's not regulated bitcoin's not regulated it's the companies and the people who transact with it are the ones who have to follow the rules

yeah and by the way guess what governments have a monopoly on violence so if you don't follow the rules they put you in jail right that's their old freaking game so the idea here is uh if they want to ban bitcoin they're going to say you can't own it you can't buy it you can't transact with it and you can't mine it right those four things well guess what they've said that in some countries and guess what happened adoption went through the roof yeah because basically people said okay so it's illegal in effect it's illegal for me to hold this all right well what are you going to do if i hold it you're going to come to all of our houses and take all of our bitcoin off our computers yeah it also makes you think like there must be something to this if you guys are trying to ban it yes there must There must be some reason you're trying to ban it.

Well, and look at the countries in which they're doing this, right? It's not exactly countries where people really think the government has their best interest at heart. Right. And also, it's not in countries exactly where the currency has been super stable and like they think that the currency is the best place to store their wealth either. Okay. So, I don't think that India should ban it. But if they do, adoption is going to go through the roof. Right. And so they're again, caught in a rock and a hard place, right? Between a rock and a hard

place, which is if I ban it, I'm going to drive adoption. If I don't ban it, adoption is still going to happen. So what do I do? They're, they have this third option. They all think that they're like, you know, a galaxy brains. They're like, yo, we're going to create our own. Yeah, yeah. We're going to create a digital dollar, a digital euro, a digital ruble. Yes. Only thing that's going to do is it's basically just going to make everyone go get digital wallets. Yes.

So they're going to be like, yo, we want to give you a digital dollar. All right, what do I need? I need a digital wallet. Cool. I'm going to go get that. But wait, this still gets devalued at the same rate? Right. Why don't I just click a button and change my dollars into Bitcoin? So the one doesn't get devalued yeah that sounds like a pretty good idea let's assume okay

let's assume it's not going to get hacked and let's assume that even if they do restrict it in any way it just drives the value through the roof because people will be more interested let's assume that and i'm not sure that that's 100 accurate but let's just assume that i'm fine with that are you trying to hedge you right now i'm not trying to hedge i'm just trying to understand everything that's you had. You had Alex Jones on and you didn't hedge shit and then I come in and you're hedging? I'm just saying, bro. Let me understand everything I'm getting into.

Alex Jones might have more Bitcoin than you, actually. Dude, do you hear what happened with him? My friend Max Kaiser gave him what is now like $600 million worth of Bitcoin and he lost it. He told that story on the pod. That's why I slapped him in the face. I told him, I was like,

dude, that's $510 million worth of Bitcoin. He goes, you're going to slap me in my face right now. Kaiser confirmed it. Isn't that crazy?

What was it, 10,000 Bitcoin? 10,000 Bitcoin. So the other, 10,000 Bitcoin was used to buy these two pizzas on pizza day, May of like,

I think 2010. Somebody spent 10,000 Bitcoin to buy two fucking pizzas. And they've asked the guy and he's like, yeah, it was worth it. Yeah, I think so. You have to say that so you don't fucking kill yourself. Well, no, because he probably has like 200,000 Bitcoin

that, you know, still sitting there. Okay, so I can't believe that. So here's something that I'm curious to have. Okay, we're looking at Bitcoin as if it's currency, right? But you told me that it takes immense processing power every time a transaction is made or at least every 10 minutes. Yep. Is it functional to do that for a cup of coffee? Is it functional to do that when you got to buy a new fucking pencil or something like that?

Buy a beer at a bar? Is Bitcoin functional as a currency or is it better to look at Bitcoin in the same way we looked at gold? It's an asset. Yeah, it's a store of value. And then what we do is we add a currency on top of it that's maybe less secure, but let Bitcoin or these other cryptos be the store is that you're heading in the right direction okay take me there gold layer one we added paper claims on the gold as a layer two yes yes then we eventually created credit electronic money all this stuff on top of it but the whole idea was it was tied back to gold as the layer one yes right and that was the store

of value and then we created these layers on top to make it easier to transact better medium of exchanges. Yeah. What's happening with Bitcoin is there's a direct trade-off between security

and, you know, ease of use, speed, transactions, whatever this bullshit you want to describe, right? And the mistake that many people are making outside of Bitcoin, you fucking are leading me right with the bread that many people are making outside of bitcoin you fucking

are leading me right with the breadcrumbs so congratulations is that bitcoin says security is the most important thing yes right if it's secure that means no one can hack it yes nobody can take us down governments can't fuck with us 21 million will only ever be the number blah blah whatever we're going to choose to do that we know that it will not be the fastest transactions we know that all these other things are direct trade-offs but security is the number one thing if you don't choose security first fuck you you're wrong right just that's bitcoin's approach put that in perspective uh is the reason why if you buy a coffee at starbucks for five dollars they don't ask to see your id if you buy for 25 they're like we need to see your id and that's just because

they're basically going, it's worth it for us to lose a couple $5 transactions for fraud so that we don't have to waste time making a signature every single time. Starbucks asks you for your ID? At $25. I make big coffee purchases, buddy. I don't know about you, okay? I'm buying five people coffee over here. It's big business.

All right. Anyway. So basically what's happening now is the layer one super secure never been hacked you know working perfectly uh now there's a layer two being built there's a whole bunch of uh innovation that's happening there experimentation etc so everything from the lightning network rsk uh sovereign iov i mean there's all kinds of stuff that's happening there uh this thing called block stack and right? All this stuff is happening. And I probably forgot a bunch of people are going to be mad at me.

But essentially, they're recognizing the limitations of Bitcoin as a currency. So they're adding another layer where they can use it for other exchanges. Well, remember, a currency is store value and medium of exchange. Doesn't mean it's a good medium of exchange or a fast medium of exchange. Just the fact that you can exchange it for goods and services. And great stat for you is that Bitcoin's annual transaction volume the amount of transactions actually on chain not traded on these exchanges actually on the on chain is more people did more transaction volume last year than apple pay venmo or paper or paypal and it was still able to manage and did it perfectly fine transaction now okay that doesn't mean we don't need to build Layer 2.

People are going to build Layer 2, so they're working on that. I'm an investor in a business called Strike that literally can send a Bitcoin from the United States anywhere in the world in a split second, less than one second, completely for free. And they're using something called Lightning Network. Gotcha. And so all of a sudden, what happens is they can literally send value around the world faster and cheaper than Visa, MasterCard, Square, all these other guys. I love all this. I love all this.

And again, this is not got you. No, no, of course. I'm just trying to understand. The way I understand things is I ask the things that make me insecure about it, and then you just kind of fill those holes. Where now you had $60,000 in your head, you're at like $80,000.

Oh, I'm all in, dude. I'm all in. Oh, so you have a million dollars there by the end of this. Look out. You know. Who knows? You know what I mean? Thanks, Netflix.

Appreciate you. Netflix should actually pay you in Bitcoin. We'll talk about that later. Go ahead. Dude, like that basketball player. Russell Okung, the football player. Well, he's a football player, but yeah. I thought Spencer Dinwiddie.

Spencer Dinwiddie. He's been super into it. I don't think he got paid in big money. Oh, no. Maybe he did NFTs or something like that. He did a bond. Yeah, yeah, yeah. What was that?

A bond. He did a bond. He basically said like, yo, do you want part of my contract? Give me money up front, and then over time you can earn more. Gotcha. Russell Okong's got like a $13 million salary.

And now it's double or something like that. Okay. All right. My brother just went viral tweeting about it, so we should give him a shout out. Oh, really? What's your brother's name? Joe Pompliano. Oh, it was your or something like that. Okay. All right. So now you... My brother just went viral tweeting about it. Oh, really? So we should give him a shout out. Yeah. Joe Pompliano.

What's your brother's name? Joe Pompliano. Oh, it was your brother that tweeted that. Yeah. Okay. Okay. You know, like we give him a shout out then he thinks I'm a good brother. Joe!

Oh my God. How does it feel to be number two? He's actually number four because there's other brothers. Fucking Ethereum of the Pompliano family. Oh, chain link ass. Is Andrew Schultz giving us crypto jokes okay okay well another question i have about bitcoin right is there anything proprietary about bitcoin well it's open source uh software and technology so so bitcoin essentially not only can it not be hacked and all these things but it is

branding right yeah of course arguably first to market you got the winklevoss twins behind it everybody's talking about it's very exciting but outside of its security there's nothing that is you could take the code base and create andrew coin andrew coin immediately and by the way if you do it nobody's gonna fucking buy it right because it doesn't have the story it doesn't have the market adoption it doesn't have the hash power and mining behind it and it doesn't have the market adoption it doesn't have the hash power and mining behind it and it doesn't have the mind share so if you go back to a currency we joke and we're like oh the u.s dollars backed by the u.s government blah blah all this stuff the military sure but ultimately it's just a belief system yes the only reason why that piece of paper has money and that piece of

paper somewhere over there doesn't wrap video is because we all agree that that has money that has value yeah the second we all stop believing that it has value the game's over yes and then we just move on to the next thing 100 i'm just trying to understand what i would want it's just open source code you could copy it but that's not gonna here's the tricky thing for me well no no this is the tricky thing for me. I think what he's asking. No, no, no. This is the tricky thing for me is I believe in blockchain. If I could invest in blockchain, I would, but to me, it seems like investing in blockchain

is like investing in algebra. Like, it's just math. You can't really invest in math. Math just is. So because I know that this technology is going to change not only the financial market,

maybe the verification of all goods in general, I think people are jumping at the idea of a verified society, right? Especially in something that is as manipulatable as a currency is. So they're like, okay, Bitcoin's the one or Ethereum's the one or Litecoin's the one. Okay, let's do it. This works for me because it's money and I understand what money is. Okay, I'll get in. But to me, I'm going, the tech behind it is the real thing I'd like to put money in. But there's no company that owns the tech, right? It's open source to whatever you said.

So is the closest thing that I can do to invest in Bitcoin? So again, it's a decentralized network. Meaning how much of what I said made sense and how much of it was dumb? Like 80%. Dude, I Alex Jones it. I'll take 80 all day. B minus, let's go.

All right. So if I want to own Google search algorithm, I buy Google stock, right? If I want to own Facebook social network, I buy Facebook stock. If I want to own the AWS product, I buy Amazon stock. I want to own Bitcoin, the payment system. What do I do i do i can't there's no stock to buy nobody owns it

so that's that's my point so you can do one of two things either you can go plug a machine in and go contribute to the network contribute competing power and you will get paid some percentage of the revenue coin or you buy the coin and there's a really interesting concept my buddy jonathan geller you uh just started talking about this he's like bitcoiners may be holding some bitcoin for themselves and some they're holding for the network because 60 of bitcoin has not moved they have not been bought or sold in the last 12 months so there's 18.6 million bitcoin in circulation 60 haven't moved that includes hundreds of percent of appreciation that includes a one single day in march 2020 where it dropped 50 in the day yeah

these people have ironclad hands they're not selling i don't care what you do they just they believe they are strong hodlers yeah yeah and so when you do that what do you call them hodlers oh dude that's my new name for you dove fucking hodler listen there's no community on the in the world but on the internet that believes in something as strong as bitcoiners believe in this and that's the that's the most defendable thing have you heard of q anon q anon yeah listen they don't stand a chance against bitcoiners i promise you you're not getting devalued they still think trump is president dude well listen you can't fix stupid okay okay i'm with you please do not come after me i like the consumer

confidence i'm with you um so the whole but the whole idea is that that belief system around 21 million and the fact that they won't sell at any price yep now this is why you're seeing all the price appreciation because now banks are showing up now corporations are showing up it's great they're like yo andrew somebody the bitcoin that you don't have right and you're like i only have one you're like okay well when it was ten thousand dollars i'll buy it for twelve thousand now i'm not selling i'll buy it for fifteen thousand now i'm not selling i'll buy it for twenty thousand i'm not selling twenty five thirty thirty five forty forty five fifty fifty five six the banks are still showing up saying sell it to me for 60.

And literally Bitcoiners are throwing the middle finger up and saying, I'm not selling. And so when you have a fixed supply asset and demand is increasing, the US dollar price continues to go up. But the US dollar price doesn't actually matter at the end of the day because most Bitcoiners aren't thinking of this

as I took dollars, I bought Bitcoin, I'm going to wait for it to go up a bunch in dollar terms and I'm going to go back into dollars. It's not a trade. They're playing long like Bitcoin is going to be the future of currency. They don't even care about the US dollar. Bitcoin is going to be the global reserve currency.

And the reason why it's going to be the global reserve currency is because every human around the world, 7.6 billion people, whatever we're at now, is going to choose sound money over unsound money gold was the analog application of sound money the concept nobody owns it nobody controls it nobody can create more of it in a physical form was gold bitcoin is the digital application of this and so why would i use that which over the last year literally some dudes mostly white men went into a room and they just said you know what man we're gonna create more i didn't get a vote did

you guys get a vote no we didn't have any say in this and so they did it in a way i don't know what data they looked at i think he just made money racist did you see what he just did right there he's like mostly white man i think he just got all the black chicks down with the patriarchy. You can walk with him. Otherwise, you can say, who's? Yeah, that was smart. Is that what you were trying to say? Some hodlers went in the room and started hodling?

Jesus, Pompiliano. Joe, get your brother. Joe, get over here. So what essentially happens is you have currencies that are being manipulated, but we don't have a say. And again, 45% of Americans are getting crushed by this, and the wealth inequality gap is getting worse and worse. Well, guess what? you have currencies that are being manipulated yeah but we don't have a say and again 45 of americans are getting crushed by this and the wealth inequality gap is getting worse and worse well guess what now you have a exit strategy and the exit strategy is literally you take the

unsound money the money that is literally so worthless that they are giving it away for free to people and you convert it into the sound money and you just simply hold the sound money and the purchasing power of bitcoin continues to grow while the purchasing power of dollar continues to crash every i mean i just can't fathom that the united states government is not some in some way protecting themselves second largest holder of bitcoin is the united states government somebody told me that so i'm gonna trust it is that true who told you that brian shouts to brian is that true i don't know who brian is he's a chef he's true? I don't know who Brian is. He's a chef.

He's a chef? Yeah. I don't know if you want to verify, but you might want to Google it. Do you know anything about that? Is that true? So I don't know what they've sold and what they haven't. That would make me incredibly comfortable. I would double my deposit. They have absolutely confiscated Bitcoin from people before, right?

So Silk Road, a bunch of times. I haven't done the math in terms of what they confiscated what they auctioned off in some cases they've literally taken bitcoin from people and then they've gone ahead and auctioned it off that's a great move this is a brilliant long-term strategy you let all the people that are selling human beings selling drugs selling guns in bitcoin around the world let them use bitcoin as the currency let it build to a premium but nobody's doing that what do you mean they're all using dollars. But I thought Bitcoin is the best way

to get around the system now. Early on, I think it was. I think I saw one of your interviews where you said there's less fraudulent activity with Bitcoin than dollars by far. Yeah, there's more dollars that are laundered every year, just money laundering. $2 trillion are laundered every year.

The Bitcoin market cap, like all Bitcoin in circulation is only $1 trillion. So there's literally more illegal use of the dollar than the entire size of the bitcoin market today ah yeah but there's way more dollars in our bitcoins of course yeah but even on a percentage basis like 0.4 of bitcoin 0.4 of all bitcoin transactions are illegal it's like two percent of uh u.s dollar transactions okay and the bitcoin illicit transactions are going down because remember all of the transactions are written on a public ledger. So like if you...

Oh, there's fucking proof. So yeah, if you send him Bitcoin and then they're like, yo, what'd you do? Like what happened? Like, oh, you were like a scumbag terrorist? They're like, idiots. Like you literally sent him the money. Like here's the transaction.

Yeah. But they're not writing details on the transaction. Like you could have bought lollipops with Bitcoin yeah but they're i mean they obviously figure out like hey the same guy who uh sent this bitcoin also send it over here and bought ak that ak-47 right right right gotcha okay so there's a little bit of proof and that scares the people that are doing illegal act well people didn't know that at first they thought it was oh nobody's gonna be able to track me and then the government kept showing up and like arresting all of them and they're like oh hey uh tell your friends like don't use this is there any proof that the imf isn't in control of

this that the imf isn't part of the 51 or the 51 the imf isn't doing all the mining like where's the proof that they're not here's what i think is going to happen right motherfuckers die over money bro like you said the united states government will kill a million brown people if one brown guy says we're going to sell oil and euros we're willing to throw the entirety of the united states military force to crush countries that go against the u.s dollar as the currency of the world and they're just letting bitcoin go while willy-nilly i can't buy that so you just highlighted bitcoin's core strength great you want to shut down bitcoin what do you do who do you arrest what computer do you show there's a million bitcoin miners or whatever

even if you go to every country in the world and you say yo let's all work together which never will happen but if you say let's all work together and we're going to shut down every single computer running this and i'm just sitting in my closet and i plug the computer and i run the software bitcoin's still alive you cannot kill the network there's been congressmen who have literally gone in and on the con on the congress floor said we cannot kill this so we should not even try and so what ends up happening is and there's people inside the government now reports are coming out where people have been on calls behind closed doors. Treasury secretary and others have said they know this is inevitable. They're just holding on for as long as they can.

And so what I personally believe they should do, and I think that any country in the world that wants to be a leader in the space, they should embrace it. Because here's what happens is Bitcoin is ultimately just an open decentralized protocol. The internet is an open decentralized protocol. And so what happens to the countries that decided not to participate in the fucking internet it's like north korea yeah like didn't work out so hot for the citizens i mean it hasn't worked out so hot for us i wouldn't i wouldn't argue that the internet is doing great for america we mean always tore us in half the last election right well we won't go there i'm just saying the open decentralized

protocols are out there. People are going to adopt it. So even though Pakistan, Nigeria, et cetera, ban it, people can still access it even if their government doesn't want them to. Right. And so if anyone is going to benefit from this, the United States should say we are going to benefit more than anybody. I like that strategy. Let's go buy Bitcoin. Let's actually start to use this as a payment rail.

Let's figure out how to incorporate this into all these various things that we do. And because whoever the first country is that does it, game over, game, set, match, they win. They will be the most economically prosperous country in the world. Unless it's hackable. And if it is hackable and that country goes all in on Bitcoin, they're the country that gets fucked the most you have to prove beyond a shadow of a doubt that it's not hackable and that's what i was also going to say if you you said what what it has been hacked bitcoin has never been hacked well uh the other coins have been hacked oh yeah plenty of blockchains so i assume his point about bitcoin

being different than other crypto i want to hear this out to hear this out. What is it? No, well, my thing is, it can be stopped because couldn't all the countries just come together and be like, uh, mining is illegal. If you get caught mining, you're penalized and charged or get thrown into jail. So they've done that in Pakistan and Nigeria and mining went up. In those countries?

In those countries, yeah. And to the point, Pakistan- Could you easily trace where somebody's mining from? So in Venezuela, here's what the crazy thing is. In Venezuela, they said mining's illegal, right? And what they would do is, governments aren't idiots, right? They said it takes a ton of power, so we're just going to look at the power bills,

and if your power bill spikes... We know that you're mining. You're not fucking playing Xbox, right? So we're going to come to your house and be like, yo, give us the miner. And then what did they do when they took the miners? The government went and plugged them in, right? Because they get paid for mining. so it's a financial incentive for now

the government just confiscated your equipment and they just went used it themselves so what ends up happening is the financial incentive is too strong right like like in this crazy crazy way like it takes years literally for me to wrap my head around this the financial incentive is too strong so in pakistan even crazier was they said yo this is illegal you can't mine yada yada whatever one of the four provinces or whatever in pakistan all of a sudden was like yo why don't we do this and then the province went against the national law and they started mining themselves in iran what they do iran venezuela all these places they have sanctions the u.s government runs around the world and they say we have two things we're going to drop bombs kill people do all this stuff and we're going to sanction you we're going to cut you off from the global financial system we

have the global reserve currency screw you well now all these countries like wait a second venezuela is like yo nobody can shut this shit down and we don't need permission from anybody we just plug some machines in and then we get currency in ir Iran, what'd they do? They literally said to people, hey, we'll give you a license and you could go and you can mine Bitcoin. And then a couple of months later, they were like, oh, by the way, new rule, you have to sell us all your Bitcoin, right?

We're gonna give you our local currency. We're gonna give it to you. And so what ends up happening is, again, it's just a game theory. And people hate thinking this way because it's so counterintuitive to what we're used to in the world. It's just like, yo, the government always wins always wins the banks always win right like that's our mindset

but the financial incentive here is way too strong and so whether you're a nefarious country right in terms of north korea or some of these guys or you're a legitimate country the financial incentives the exact same and so i actually think what's happening in like kentucky right now is fascinating kentucky just started to say, yo, you know what? If you're going to mine Bitcoin, we're going to give you tax breaks. We're literally going to make it easier for you to mine here because we want this infrastructure to be built out here. It's going to bring jobs. It's going to bring all this investment into our local economy.

And we'll actually not tax you as much on it as we would have now that this new law has passed. And so what you start to see is, again, it's just like this big game theory how can you profit off on that well if more people get jobs right there's still income tax there's like all these things that they can basically benefit from as there's more economic activity in their country or in their uh in their economy or their state but what they're not going to do is they're not going to tax you maybe as much at the entity level on let's's say, buying the electricity or whatever. Okay. There are all these other coins that exist, right?

Ethereum being the second most popular one. And Ethereum is having a little moment right now because Ethereum, okay, if we're looking at Bitcoin like a ledger that is, I i guess decentralized or anybody can use the ledger open source ledger ethereum my understanding is kind of like an open sourced computer in that so describe it yeah it's in the apps can be added to it and then you can find ways to monetize those apps this is what people are doing with nTs. So is Ethereum, I have twofold question. One, what the fuck is an NFT? But two, is Ethereum a next level cryptocurrency? Is it taking it beyond what this store of value, which is Bitcoin? And is Bitcoin going to have to play catch up to Ethereum? No. Okay. So then is Ethereum,

what is an NFT? Let's start there. Well, hold on. Let's talk about Ethereum first. So there's a lot of different types of assets. There's really four main assets. There's stocks, there's bonds, there's currencies, there's commodities, right? Right. Bitcoin is going after currency, right? It wants to be store value, medium of exchange. We talked about all this. Ethereum isn't necessarily trying to be a currency, right? What they basically are saying is something completely different. They're saying, look, we're going to rebuild the internet. We're going to build this world computer, and we're going to be decentralized.

We're going to have something called smart contracts, which is really just automation, right? And we're going to build this, and anyone in the world can come here. They can build it. It'll be decentralized. It'll be amazing, utopia vision. What ends up happening is if you build the internet the internet's not really that valuable you know the traditional internet unless there's companies products and applications built on top of it right so if i just said to you how yo here's the internet you could use it but you didn't have

google like the internet might not be as valuable or there wasn't facebook or twitter or whatever so ethereum was built now people are going in and they're trying to build all this stuff on top of everything from decentralized financial applications to uh this nft stuff to all kinds of stuff and so what ends up happening and where there's tons and tons of controversy and debate is uh ultimately two key things one is the bitcoin community believes security number one most important thing proof of work uh if you don't have that, you're screwed. And the Bitcoin community. Question about that.

By having more access to or like openings to the blockchain through Ethereum's, I guess, way of working, do you create more liability for hacking? We're going to get super in the weeds basically uh ethereum launched uh a couple years ago with a very similar way of doing security compared to bitcoin the big change was in a very generalized manner uh was the smart contracts basically this ability to uh write on top of it in a much easier way so uh vitalik buterin and a couple of these other folks basically they want to do on Bitcoin, they felt like they couldn't.

So they went and created this new thing. They are now switching from a proof of work, which is all the computers, to something called proof of stake. This is like level 401 in the college course. But basically, rather than use the computers, you have a economic position. You stake it.

You basically say, I'm going to put this here. And because of that, I'm not going to be a nefarious actor because if I'm a nefarious actor, then I will lose the value, right? My economic stake will go down. And so, therefore, my vote should count. I'm not expending energy. I'm not expending the computing power, though economically incentivized. I'm not expending the computing power, though economically incentivized.

You can imagine there's a bunch of smart people that get in a room and it's like, forget intellectual Olympics. It's like intellectual gladiator type stuff in the arena where they're all going nuts. We will see. I always say like my opinion doesn't matter. Your opinion doesn't matter. The market will decide.

There is two schools of thought one is that uh this ethereum kind of world computer and the gazillion of copycats that have come along from it are going to end up being successful so i have a decentralized thing you'll build applications top of it we'll go the other school of thought is that the bitcoin network which optimized for security first eventually will add add layer two, layer three, et cetera. And you'll have all of that composability, smart contracts, et cetera. A lot of that is there today. It's also there around Ethereum.

And so what's going to be very interesting to watch play out is how important is security? How important is true decentralization, right? And there's questions on some of this other stuff. And what I think ends up happening is like some of this gets religious, like kind of tribal wars. Like it's almost like people have like sports teams. Like, you know, go Bitcoin, fuck Ethereum type stuff. If I was 95% invested in one of the coins like yourself,

I would definitely be rooting for it. Well, I'm 100%. You're 100%. You don't have any cash? Huh? No, no, no. Like I have 100% Bitcoin, nothing else. Oh, I'm 100%. You're 100%. You don't have any cash? Huh? No, no, no. Like I have 100% Bitcoin, nothing else. Oh, I meant like your wealth.

Coin-wise. Oh, yeah. Yeah, 96%. 96%, okay. So like some people basically split. Some people add all this other stuff. But what you find is like the further you get from Bitcoin, the more people are speculators.

So what are they doing they're basically saying like oh look at this like early stage technology product right i can't go invest in a private technology company so i'm gonna instead buy this coin that's like two cents and i think it's gonna go to four cents i'm gonna double my money yeah then i think it's gonna go to 10 cents 20 cents right and sometimes they do yeah but that's not really the same thing as what bitcoin's doing right like you're gambling which by the way you do in the stock market too but it's just like that's what you're doing you're not doing what bitcoin's doing that's what it feels like right now the coinbase account is basically the stock market like i look at that the way i look at the stock app on apple it's just a

bunch of different coins you invest in and then it goes up or down and you think at the end of the day there will likely just be one which is bitcoin like, like Highlander, like there can only be one? I think that, and I caveat all this with like, nobody actually knows what's going to happen. Like I can't see the future, right? But the way that I do think things will play out is Bitcoin is the king. Bitcoin will be the digital currency. Other countries will go around the world and they'll create these digital currencies, digital dollars, all this stuff.

There will be private corporations that try to do the same thing. You'll get no competition at the technology layer. They'll all be digital. The competition beat the monetary policy layer. All fiat currencies have the exact same monetary policy. It's inflationary, right? There's unlimited supply. Bitcoin is digital sound money. So all of the capital and value will flow to Bitcoin from a currency perspective. When it comes to all of the other stuff outside of currency, it's a freaking wild, wild west. I mean, I literally see people who start something and next thing you know, it's worth billions of dollars from these market caps.

People are creating tokens. It's like, you know, just put a.com also. You got a token next, you know, it like goes up in value and stuff. And so what I think is gonna be very interesting to watch is two things. One, where do the developers go? If the developers

all go to Ethereum and stay there, then there's going to be a bunch of economic activity that happens there, right? Because naturally that's where everything's going to get built, all the innovation, experimentation, whatever. If all of the developers go to Bitcoin over time, then there will be economic innovation and all that kind of stuff there. What I think people have to be very, very careful about though, is as this progresses, you have to understand like, what are you trying to accomplish? Right? So there's a lot of people you mentioned, like Coinbase looks like the stock market. There's plenty of people who look at crypto and they're just like, yeah, the use case is not store value, medium of exchange. It's speculation. And so if you want to speculate, sure, you can

speculate in the stock market, in crypto, at the casino, like you can do all that stuff. Right. speculate sure you can speculate in a stock market in crypto at the casino like you can do all that stuff right but you're not doing what most people would consider your saving in what is going to become the next global reserve currency right you're just literally putting stuff on black and whatever happens happens by the way if you find that entertaining or you think you're gonna make money knock yourself out like your free choice go do whatever you want but i think that the bitcoiner position is uh what bitcoin is going after is the largest opportunity, right? We're basically trying to disrupt central banks. We're trying to disrupt global reserve currency, et cetera. And so we're talking about basically the global money supply right now. It's like 80,

90 trillion. If Bitcoin is successful, it's likely to be like 150 to $200 trillion in size, which means it'll literally steal economic value back from other store of wealth assets so the gold market cap has actually been going down yeah because as bitcoin's going up people are literally selling their gold to go buy bitcoin what happens in real estate uh art like all these other uh store value assets start to contract and it flows into bitcoin bitcoin's price goes up because those other store value assets are all based in in verification right like a piece of art there's this documentary i just watched called made you look on netflix have you seen it no i've not it's really interesting

made you look made you look they basically just forged 80 million dollars worth of art and sold them through like one of the most respected galleries in all of new york the nodler gallery or whatever like that it's like sour grapes or whatever the wine movie where they make the fake wine bottles and people lose their shit over it yeah well the guy like yeah he made millions of millions of dollars exactly so um but it just proves to me i'm watching this and i'm going oh this is why bitcoin is the future or this is why blockchain is the future right is because these people are dying to get their hands on this piece of wealth that's just going to increase in value value and is verifiable real 100 non-fungible if you you will. That's the term that

NFTs are using all the time. So I see this as proof of concept for storing wealth in the future. Explain to me what the fuck NFTs are, why this artist can sell them for $69 million. Beeple, I think, sold for $69 million. A buddy of ours, Logan Paul, put out these fucking Pokemon cards of himself he made a few million dollars what is happening what is an nft what is happening and how long does this nft bubble exist so fungibility again just some fucking fancy world somebody made up right but basically fungibility means if i take that hundred dollars and i put it in a pile with 10 other hundred dollar bills and we mix them all up and i just grab a hundred dollars back it doesn't matter

if i got the one I put in or I got a different one. I got still $100. I go, I can use it at the store, whatever. If I have art, though, and I have a Picasso, and I put it in a pile with three fake Picassos, and we mix them all up, and I go to grab a Picasso, if I don't grab the original, I'm screwed.

So when the dollars all can get mixed up, I can take whatever back that's called uh something that's fungible it doesn't matter which one you have as long as you have a hundred dollar bill you got a hundred dollar bill as long as it's real right with the art you need something that's non-fungible meaning if you don't have the original then you got a fraud and it's not it doesn't have any of its value so what ends up happening with bitcoin is bitcoin is fungible right if i have a bitcoin and you have a Bitcoin and we basically send them back and forth a bunch of times and we don't know,

do I have my original one or your original one? I got a Bitcoin, you got a Bitcoin, we're good. What people started to realize was, wait a second, a blockchain, a key piece to it is remember when we talked about the blocks of transactions, it's immutable. All that means is no one can change it. So once it like gets stamped on the blockchain, nobody can change it. So you can imagine all kinds of crazy stuff.

So early on, somebody on Ethereum said, yo, in China, they don't want to let me say something. You know what? I'm going to write it to the blockchain because the Chinese government can't take it down. Oh, okay. Like that's interesting, right? So wait a minute.

You mean you can't censor an immutable thing? So that was a pretty aggressive use of it. People started to say, well, where else is non fungibility important? So anything that's scarce, go back to that piece of music. If you can copy music over and over and over again,

then basically there's no scarcity to it, right? Or the whole value of art is scarcity. So you can think of it two ways. And I forget who, who wrote this. so I apologize. I'm not going to give them credit for it, but basically think of it like a serial number.

So if I said to you the example that I was reading about is somebody said, think of it like the Eiffel Tower. Eiffel Tower 001 is the real valuable one, but every copy, no matter how big it is, how small it is, where it is, if it's in it is if it's in vegas

if it's you know eiffel tower number 47036 it could be no value exact same way exactly no value if it's not in paris if it's not serial number one yes no value so what ends up happening is in a digital world this shit's hard like it's hard to rebuild the eiffel tower it's hard to put it in a different place and people like oh that's the original right is in a digital world, this shit's hard. Like it's hard to rebuild the Eiffel Tower. It's hard to put it in a different place. And people are like, oh, that's the original, right? It's a physical world. In the digital world, it's much easier to do this stuff. So when you basically stamp it onto a blockchain

and you say, this is serial number one of this item, everyone can see it. And then everyone can see who's owned it. So let's say you create a piece of art and then you send it here, here, here, here, here. And now the next person wants to come buy it they can come see did andrew create this or not who else owned it when did they own it what they pay for all this here's my question about that especially with art with a

piece of art right uh maybe now with 3d printing or something like that it's possible but up until maybe the last decade it was impossible to recreate a piece of art in the exact same way, especially if it was like an oil painting, right? There's like certain 3D textures to oil. So even if you were an amazing forger and you recreated some Van Gogh, it's not going to be exactly the same. Maybe the colors are similar, but it's not the exact same, right? So you know what's different. So you know what's different. With a piece of digital art,

a simple screenshot could recreate the exact same image. Why is it that people care about having the original thing when... It's not the original. No, no. Why do they care about having the original one when the copy is exactly the same? Because people aren't buying art because of what it looks like they're buying the story yeah that's what i have to wrap my head around they're buying the value right if i paint the same thing as van gogh it's not because of what

it looks like you're right you're right it's they're buying van gogh they're buying the story so so what you said about the eiffel tower kind of made it click for me because you could recreate the eiffel tower and it has it has negative value because you could recreate the Eiffel Tower and it has negative value. You're like, what do I do with this? This is a waste of space. Yeah, it takes up too much room in the garage. Too much, yeah. But the fact that there's this story built around the Eiffel Tower in Paris, you're purchasing that story.

I get that. But a brand new piece of art that just came out has no story besides you, maybe the artist. So I'll explain. You used this artist I've partnered with called ricoti right so ricoti basically said all right i'm going to create art and what i'm going to do is i want to democratize access to this so think of like christie's christie's or or susby's or whoever says yo if you're rich you can come you can buy this auction houses super expensive art right and it's kind of gated you got to verify yourself gonna do all this stuff ricotti said all right i'm gonna create this

really dope art i've got uh 12 pieces yeah i'm gonna sell it on the internet anyone with the internet connection anywhere in the world can now come in and can buy this yeah and uh this artist said i'm gonna sell for 0.01 eth right which is basically like 18 bucks 19 bucks at the time and they sold this direct sold out in 26 seconds. ETH is short for Ethereum. And so basically they promoted it on Twitter, blah, blah, whatever, all this stuff. Then they said, you know what? We have three other pieces,

and we're going to auction them. So just like these auction houses do, we're just going to auction them to the internet. And when they auctioned it, it was, here's the piece. Anyone in the world over the next 24, 12 hours, whatever it was, could come in and let the market decide what it's worth.

Sold the first one for $40,000, the next one for $70,000, the next one for like $40,000 again. And the reason why that's important is what those people are buying is that Rakoti created it. You can see in the transaction history that Rakoti is the one who minted this onto the blockchain and then from there what happens is you can literally not only see every single transaction but also in some of these platforms you can see every bid so i could see that you actually bid 100k and then you got scared and you took away the bid that i could see that he bid two dollars like a cheapskate right exactly oh this is accurate and then he basically was like nah you know what like i? Like, I don't want this, right? So you can see all this history. What it does is it provides transparency.

And that's ultimately what's happening around the world, whether it's blockchain, crypto, Bitcoin stuff, or it's just frankly society in general, is people are calling bullshit on the world. They're saying, I don't believe you. I don't believe the politicians. I don't believe the central bank. I don't believe the media.

I don't believe anybody. But I believe blockchain the central bank i don't believe the media i don't believe anybody but i believe block verify it prove it to me if you prove it to me then i'll trust it so do you think uh on some level crypto is a reaction to a lack of trust in everything do you think people are seeking you know how like girls with daddy issues, like, right? Like they might seek out a certain type of dude, right? Like, do we have daddy issues with the government, with politicians, with, do we have daddy issues with the powers that be, the elites, and we're seeking something that is out of their control to find comfort in? The world historically has been a narrative driven value chain. What I mean by that is gold. The reason why gold is valuable is because somebody told you it was.

You can't tell me how much- I give a little pushback on that. All right, go ahead. Well, you can put a lot of pushback. It's your show. Yeah, fair enough. But you're the expert. But have you ever held a nugget of gold?

Yeah. I panned for it one time in Walnut Creek in North Carolina. It was fucking amazing okay now i think it was fool's gold though go ahead that's the thing you might have some fake shit but if you if you hold like this much gold right it was the weirdest thing i've ever experienced i was doing some like news show and one of those guys that were on the gold rush things he was there and he just had a nugget like a raw nugget and he handed it to me and it was almost alien the weight for size was the most peculiar thing I've ever,

I've never held anything like that in my entire life. So I could see how some very primitive human being picked up the substance, and for whatever reason, it was so fucking dense and weird. And shiny. And shiny and odd that you would almost feel like it was, I don't know, from outer space or something. I can see why we would ascribe value to it.

Yeah, so it's a psychological concept. Exactly. And the same thing I imagine is at play here with Bitcoin, but it's playing into something else. It's not going, this is, I honestly think it's the opposite of gold in a way. I think this is, this, I don't know what the fuck it is. Bitcoin, I do.

There's proof of every single thing about it. So I find security. I can verify it. It's the fucking San Antonio Spursurs do you know what i mean like it's just like this is good fundamental basketball i know what i can expect from it whereas gold was this like otherworldly substance substance that we put all this value on but at the end of the day what was it worth the the whole idea of a narrative driven value chain is when you pick it up it's shiny right like humans are stupid i think yes. I think I'm stupid. You're stupid. Like we're all stupid. Right. And so we pick up the shiny thing. We're like, Oh shit, this thing must be valuable because it's

shiny. Right. And so what you end up seeing is that the world told us it's scarce. The world told us it had value. And so when somebody says, okay, well, how much gold is there? Uh, we have a pretty good guess, but like like nobody knows for sure yeah when the government says hey the dollar we say well how many are there well you know here's the rest our best guess right nobody knows how much is created or taken away every day all this stuff right and so everything in our life is a narrative the media right if you look at all the institutions like it's all narrative driven and so what now has happened with digital technology is we say the narratives don't matter in terms of i'm not going to simply just blindly believe the narrative right narratives

around assets will always matter because investor psychology but the narrative is an inferior way to prove value or to drive value than verifying and trust and so it was not it's not even trust it's because it's truth exactly and so i think that the whole thing that ends up becoming really interesting is what if i could tell you that every single time right look at media look what you're doing if you got interviewed by the mainstream media every day yeah and they wrote articles about you you'd be going nuts but that's not what i said right or they twisted my words or i didn't know they were going to write this or whatever the complaint is even if it was a positive piece. Right now, you just speak into that microphone and people hear exactly what you have to say. Yeah.

And so it's going to the source. It's verifying. I don't care what somebody else says from this interview. What did he say in the interview? We live in the age of verification and blockchain technology is the confirmation of that. The world is going to run on open decentralized protocols that allow for complete verification of truth of everything now i believe in that entirely 100 i support that here's my question how else what else is affected by it like what industry gets destroyed do we need the stock market anymore do we need finance dudes like i mean i mean that's sincere like are there

jobs fucking done so we can verify every single trade and do it ourselves? Go back in time. Before telephone. One more thing. What if we can add a blockchain to the profits of a company? There's no more Enron. There's no more. I'm trying to think what the 10, 20 year effects of this are.

And you might get a realistic look at all these different companies i don't even think you need stockbrokers anymore so if before we go to the future let's go to the past okay go before phones computers cars anything there was finance companies all this stuff there are some companies that are still around today if you go back and you look at you know jp morgan was a dude and he was really rich and now his company still persists goldman sachs been around for a long time all this stuff right so some years so some companies will navigate the invention of technology or innovation right so new technology comes along they embrace it they figure out how to use it and and they not only survive, they thrive in the new world.

Other companies that may be their competitors get completely disrupted. So Sierra's a great example. Internet comes along, like, see ya, right? They just got completely blindsided. And so it's not that everything goes away and it's this, like, super binary world. There's actually, like, this gray area.

But what's gonna happen is the people who embrace the technology will thrive. So the bankers who say, yo, I'm just gonna figure out, like, what's my role in this new world? Because, by the technology will thrive so the bankers who say yo i'm just going to figure out like what's my role in this new world because by the way out of the 10 services i offered eight of them now are obsolete these other two i'm going to double down on and now there's the creation of two more so ultimately what ends up happening is think of a company it's just the flow of resources and the organization of resources? Pomp, I went on, sorry to interrupt. I went on Joe Rogan's podcast a few years ago.

And I feel like we're having the conversation about the financial markets that I had with him about television and standup. Where I was like, it's over. Like TV's dead. Like there is no more TV. And I leaned all the way into social media. I leaned into streaming. I leaned into YouTube it's over. Like TV's dead. Like there is no more TV. And I leaned all the way into social media, leaned into streaming,

I leaned into YouTube, obviously Instagram. And I was, not only was I sure I was gonna win, I couldn't fathom how anybody could think anything else could win. I couldn't fathom. Bitcoin is YouTube. Exactly. Bitcoin is YouTube.

It's just a more efficient way of getting content to people. This is a more efficient way of making these transactions. Maybe not more efficient in terms of every day, but whatever. We'll work towards that, right? So I'm sitting here with you, and I'm still having trouble getting all on board, but I do recognize maybe what people might have felt like in that instance. So this is the undeniable future.

Which form it takes, we're not sure. Your hedge is on Bitcoin, right? It could be ethereum it could be some other one that blows them all out of the fucking water but without a doubt markets are going to change because of this new technology it's a foregone conclusion because ultimately where we're headed is an automated world so here's the best way like what people say to be like you know forget all the details all this stuff like at a high level just what the fuck is going on the world is going to be more automated in the future than it is today the problem is that there's a mismatch of automation technology and assets right so most assets historically up until the 70s or 80s were all analog physical stock

certificates physical bonds see the guys physical home deed all this shit right and then eventually they became what is today an electronic q-sips we were like yo maybe we shouldn't use paper maybe we should have a centralized database with this fucking string of letters and numbers in that q-sip we're gonna all trade around like geniuses around the world and that is going to represent that asset now what's happening is removing from the electronic q-sips to these digital assets but the reason why the digital assets are so important is because if I write some sort of technology to automate, let's say I want to do automated, what they call on-chain cash flow. So when I get paid,

why does the corporation hold the money for two weeks and then pay people on the 1st and 15th? Why don't we just pay people at the end of every day? It would solve so much economic pain in this world, right? And so if all of a sudden we could do that we had the technology to do it why don't we do it well now the technology is here but the difference was even if the company had the desire right back in the day to pay every single they just didn't have technology right right so if i wanted to pay you every day i would

literally have to run payroll and i have to go through the banks the banks like oh you came in at 505 we are we're fucking closed come back tomorrow like all this bullshit i could push one button and everybody on my staff gets paid yes even better is you could pay them every hour you just say it's automated so just it just flows a button it just takes care of itself it just flows you're out of it so the whole idea though is the electronic q-sip asset can't go through that automated technology it's like trying to take a cassette tape player and put it into a cd uh uh player yeah yeah the cassette tape and the cd player don't they don't fuck with everybody listening that's how we used to listen to music cassette tapes and cds pomp just showed his age and it makes me feel amazing keep going

right and guess what the cd rom doesn't go into the mp3 player right so the same thing here is you got to upgrade the assets and so now all of a sudden we get digital assets now digital assets can assets can actually be used by all these automated technologies. So the world we're going to is fucking going to be wild. People who watch this right now, if they understand the world that you and I are living in, are going to see the future and be like, you guys were dinosaurs. Is what you were describing similar to, for example, a lot of people who still had cable and maybe didn't adopt to youtube yet because

they were on old shitty internet so some of the for certain it's like once their internet got upgraded it was like oh fuck cable i'll just watch youtube my parents watch youtube all day they got rid of their my parents 70s i think what he's saying is almost the opposite we've had this technology we just haven't had the asset to match the technology like we've had it's a mix of both so you're both right right so like one is we had to upgrade the assets but also there's all kinds of things like so the equivalent of uh i don't have fast enough internet is i don't have a digital wallet right like that would be one example so like if all of a sudden i have a digital wallet and i have the digital asset then i can interact with all this stuff and there's still a ton of work like don't don't get this wrong this isn't happening tomorrow right like there's still

tons and tons of work but like there's gonna be a world where literally you go to work, you get into a car, that car fucking shows up without a driver. It's a driverless car that just picks you up as part of a robo taxi. And as you drive, literally the car is just using a wallet that's in the car and it's just streaming payments to the government, which is taking their taxes in real time rather than stop at a toll i mean think about you drive on a road and you stop and we literally reach in our pocket and grab paper money and hand it to somebody else and then they look at it they count it and they give us back fucking coins archaic in a way stupid yeah so eventually the technology all gets built

but then where you end up going to is like okay well what else can get automated, right? Where else can this happen? So why is it that if I have a stock, I have to go from the stock to a common unit of account, which is the dollar, and then go back into, let's say, to buy a house. Why can't I just take the stock and use the value of the stock to buy the house? Is there some sort of like tax liability there that we're worried about?

There's tons of regulation, taxes, all this stuff's gonna have to get upgraded. Because people might try to like avoid paying taxes by transferring their wealth from asset to asset. All kinds of stuff will have to happen in terms of people understanding. It's probably reasonable. Well, it's just, no, the person selling the house isn't going to take your stock certificate. Right? Like if I'm selling my house and you show up and you're like, oh, here's Apple stock.

I'm probably like, dude, go sell your fucking Apple stock and bring me dollars. Right? The government doesn't infringe on that at all the government is like you have i don't i don't know the exact regulations i'm sure that you could figure out a way to do maybe you have to pay extra taxes or whatever but like the government might say like you need to prove that you've made income off that stock and that's when you change it from stock to cash i'm going to take my cut from that then you go buy a house don't go buy a house without paying a piper could i but i hear what you're saying so all of a sudden they're getting

their tax money in real time they're not even worried about you ah also they're not trying to worry about you trying to beat them because this is all automated anyway we have all these rules set in place because we're trying to beat the tax man here's the fact this is the best dude all these like uh bernie sanders and fucking aoc and all they should be dying for us to do bitcoin because then you get your money these rich motherfuckers can't get away even better is on top of that think of like the sec so the sec spends millions and millions of dollars a year to find people who did something wrong build a case and then go and force on them If all of a sudden all the stocks are digital assets, and let's say that you've got a wallet, and we know who you are, your age, your income,

where you live, your accreditation status, all this stuff, and you want to transfer that stock to him, right? And they know who he is, where he lives, what his income is, accreditation status, etc. And it's an illegal transaction right it breaks the rules the code is going to serve as the law the coach is going to say nope illegal transaction reject right and so now all of a sudden sec saves all that time money and energy from fucking figuring out who you two idiots are and building the case and enforcing on you they just prevent it up front it actually makes in a crazy world it makes the regulators, the government, et cetera, better at their job. And it creates a more efficient system. Now, there's a lot of people in Bitcoin who don't like the fact that the government's going to get power here, right, in terms of and get some sort of benefit as well.

Yeah. But ultimately, what ends up happening is the world we're going to is automated, it's digital, and it's run on open decentralized protocol. So not only is it that, we're already very forthcoming with the information in our lives. We act like we want this privacy, but the reality is we got our phones tracking wherever we go at every point in time during the day. I mean, I had a buddy of mine growing up who ended up going to jail because his phone, well, because he broke the law, but also because his phone proved that he was in one place and another place where crime took place. Whatever. It doesn't matter. But point is. Did he do it? Who knows you know all right who knows who knows buddy all right

so the point uh the point i'm trying to get to is that like some might say that the blockchain would be intrusive if it would mint every action that you made that day. For example, you hopped in an Uber. It's paying for the Uber while you're doing that. You're buying a cup of coffee. Every single transaction that you've had throughout the day is going to be minted. Your wife can be like, where were you at 2 p.m.? Mom, I'm going to just go check the blockchain.

You said that you were getting coffee, but you were really at this hotel banging this broad. So there is a way that the blockchain is almost snitching on oneself, especially if it's open source, if anybody can access the blockchain. And you needing on oneself, especially if it's open source, if anybody can access the blockchain. And you need anybody to be able to access it because without that,

there's no surefire way of proving that you aren't doing nefarious things, right? You're so far down the rabbit hole that you are a Bitcoiner already. Keep going. I'm getting it and I understand it. That being said, maybe what will happen is

we'll be so comfortable with our information being transparent like every time i open venmo for some reason it tells me the things that like people that i know are buying social feed i'm like don't show me that like i i don't want to know like i'm paying the lady who cleans my house i don't why not only could i care less i don't want to know like i i don't want you to know who i'm why are you showing me that but it's almost like they're priming us for this time where every single action that we make is going to be coded it's terrifying but at the same time is that just what it is no it's terrifying so china is super into all this stuff right they're creating something called uh a digital currency

whatever it's like dcep i think is the name of it yeah basically what they're trying to do is they're trying to take all the ideas of a cryptocurrency blockchain whatever and they want to create digital currency uh and they're like yo we're super like you know forward thinking we're innovative blah blah whatever no you want to track every they want to track everything so it increases part of the risk is that there's an increase in financial surveillance capabilities and so it's a really important thing to talk about because ultimately what we need is we need just as much of an investment in terms of the infrastructure and decentralization and kind of all this. We also need huge investment, whether it's through Bitcoin

developers or other people into all sorts of privacy technology as well. So like when I fast forward 30 to 50 years from now, I see a world where there are technologists around the world that are building privacy centric technologies that allow for people to not only hide because it's their human right to have privacy but also to use pseudonymity when they do things so that you may be able to see that it was this entity and this entity that uh that transacted with each other but you don't know who owns those entities right and then on top of that it's all built on these open decentralized protocols where there's full automation. So when you look at that world way out there, you say, we got a ton of work to do.

But if we can get to that world, ultimately what you do is you loosen the dependence on government. You loosen the dependence on the existing incumbents and infrastructure. And then on top of that, what you do is you give power back to the people. And I think that's ultimately where all the distrust comes from is people are looking and they're saying, wait a second,

does the government really have my best interest at heart? Does the bank really have my best interest at heart? So here's something I've been trying to ask is, and this is maybe a stupid question. You don't have the caveat at all, stupid questions. You asked me like a hundred stupid questions. I just ask him, I take it on the chin. this asshole always prefaces it yeah just look make some sound smart good it does make me sound smarter it lowers he is smarter than you but go ahead um

i i started buying a little bit of bitcoin early on because i was like you know what i didn't understand any of the technology but i was like a global currency just makes sense yep mistake by the way we're so to not understand technology no just buy a little bit a little bit i fucked up hard but not as bad as him right this is a stupid question it's like little is bad until you meet somebody who has none and then that's like worse okay but the one thing that i keep thinking is if bitcoin is a disruptor which makes perfect sense can't that upset enough people that some group is going to be like you know what fuck this we're going to hack and we're going to bring this whole thing down especially if 60 of the people who own bitcoin are like no i'm not giving this shit up fuck you the u.s government or some super powerful entity could be like no no like you said we will go to war to destroy we went to war for far less

so why don't we just all right all we got to do hack millions of this shit is ours again for far less so from a technical perspective they can't hack it because what they would have to do is they basically would have to get control of so much of the mining power and if they went to go get control of all that mining power

they would have to on a geopolitical level it's not like all the mining powers in the US or in China or in Iran or in somewhere in South America or in Africa or wherever. We would have to hack all these millions of computers. Or there would be global coordination, which doesn't appear to be likely in any way.

But on top of that, even more so is the financial incentive to embrace it is bigger than the financial incentive to destroy it. Another thought I had is could they the government or somebody just be like oh all these people who are bitcoin billionaires i'm just gonna indict you on some bullshit charge just so i can take your bitcoin and then we can have more wealth is that a danger for a regular guy who just bought a thousand bitcoin at six hundred dollars and now is fucking rich so there's always risks in everything right and i think that part of the conversation that becomes really interesting is uh if you disincentivize the adoption of something that's a big problem right now you could argue that there's some politicians

who they want to do that same thing not because people own bitcoin because they own too many dollars right they maybe they don't want to put them in jail but they want to take all their dollars right they're like oh you're too rich like okay well i thought we live in a capitalistic free market society right and so ultimately what ends up happening is uh people will always always want to go after those who have more than them right whether it's a politician an average person whatever and what you end up finding though is bitcoin is a way more um kind of democratic view right now today anyone in the world can go buy bitcoin you and many people around the world can't go buy a lot of assets me included there's super exotic financial instruments that you if you're not an institution

you can't buy yeah if you're not an accredited person you can't go fucking invest in a company all this stuff right so you get the democratic aspect of it on top of that there's this idea of if you have an internet connection you can just connect to the bitcoin blockchain you don't need anyone's permission even if they tell you it's illegal even if they say they're going to shut it down all this stuff as long as you have an internet connection you can get on the wildest thing i've seen to show you just how extreme this is is there was uh i think it was in venezuela there was a blackout and so of course like all these freaking trolls, you started us off with saying, like, I've been, like, you know,

dancing on graves on Twitter, right? And so all these trolls are yelling and screaming. They're like, oh, my God, the electrical grid's down. Like, you can't use Bitcoin. We're like, hey, you idiots, you can't use dollars either because 92% of the supply is electric. But, okay, somebody literally used a generator, turned on their generator, got access to power,

then took their computer and they pointed it and there's a satellite that runs this node and they basically were able to send a bitcoin transaction via the satellite even though the entire electrical grid in the country was down and so like by the way that's a super extreme one-off case like not everyone's gonna ever have to do that whatever but it just showed the fact that even when the entire national infrastructure was down if you went to the bank with your generator you're not getting any money right and so what ended up happening is it completely reduces the reliance of the individual on the government to your point there's gonna be a lot of people who don't like that yeah but what

ends up happening is there's a difference between rules and enforcement so jaywalking is illegal in new york city you ever jaywalked? Yeah. Yeah, I do it all the time. You do it? Yeah, you do it in front of cops. Of course. They don't enforce it, right?

Because guess what? It would be nearly impossible to enforce it, right? Like they would literally be arresting people all day long if that's what it was, right? Or giving tickets or whatever bullshit. And so there's a lack of enforcement around a rule and therefore the rule basically doesn't exist. So if you want to enforce on Bitcoin,

any rule, you can't give me your doomsday scenario for bitcoin even if it's not something you believe in what is the the number one risk to bitcoin like all this other stuff i think is just intellectual olympics uh the number one risk is uh in the development process as the code continues to get upgraded etc there's a bug that's introduced into the code and so that bug then gets exploited whatever now i think that that's a near zero percent probability but to me right and other people disagree with me but that that's what i think is the biggest risk uh so kind of a self-inflicted wound of the bitcoin community because they're still creating code for bitcoin they're constantly upgrading it they're constantly upgrading the bitcoin code that's that's separate from the mining so what they're doing is they're building on top of it they're doing all kinds of

things around it but they're not ever changing that core monetary policy is human being so this is potential human error yeah yeah it's always going to be human there's code yeah there's there's code being written whatever so again very low likelihood because of where the code's being contributed for things on kind of think of it almost like on the fringe, right? Rather than the core value proposition. And then two is, again, the whole idea of like optimizing for security. They don't want to go faster than everybody else. They don't want to be the most innovative in terms of secure, most secure.

There's now a trillion dollars of value at stake. We cannot fuck this up. How much you got? Enough. More than $500. we cannot fuck this up how much you got enough more than five hundred dollars well considering you said you put sixty thousand dollars in course i have sixty one thousand which means you're gonna put 62 so then i got 63 and then we're gonna work you up to 120 give me a number give me a number what do you have you got like two thousand bucks in there enough like like

what twenty five hundred is there a number that i could lie to you about that would make you happy yeah try it all right five hundred dollars you look like you got 500 this is you gotta play you gotta play to italian's egos you gotta go at them a little bit like yeah i mean with your outfit i would say you got about 600 bucks in there i'm actually mad that you uh you have your shirt buttoned today. I didn't want you to get too comfortable. No, no. Are we talking about a million?

Are we talking about 10 million? Are we talking about 100 million? Like, where are you at? Well, the first problem is you're denominating everything in dollars. That's what I was going to say, you dummy. Y'all are bullies, bro. Y'all are real bullies. I'm just trying to ask you a question. Listen, can I tell you a trick?

You want to really go dance on graves on Twitter? Yeah, yeah. You should go buy two Bitcoin, which would be the $120,000 I told you you're going to put in Coinbase. And then you could go, you could tweet at Warren Buffett and Jeff Bezos and all these guys and tell them that you're richer than them because you got two Bitcoin and they got zero. Wait, Buffett doesn't have a single Bitcoin?

Well, he thinks that is going to zero, but he also doesn't use email. So I don't know if we should listen to him about but he's done pretty well has he over the last 10 years he hasn't beat the s&p 500 god damn this guy got bars for days this guy like if you held bitcoin if you held bitcoin hold on hold on he hasn't beat the s&p 500 for the last decade now to his credit he's one of the greatest investors of all time, gone on an epic run. Hold on, let me just sell my fucking... What does that mean exactly? Sell my Berkshire Hathaway real quick. Beat it to the S&P 500?

So basically, the S&P's returns every year, like it's an index. He hasn't outperformed it in terms of like... The S&P 500 is what? The top 500 companies? Basically, the market. The market, yeah. He hasn't beaten the market in the last... Now, his problem is he's got a lot of money to deploy, right?

So he's got hundreds of billions of dollars. It's not like you can just be like, hey, let me buy one Apple stock, right? You've got to put a lot of money to work. And so as you get more money, it's harder to do that. But all jokes aside, he's the first person to say, look, he doesn't understand technology. That's not where he made his money, right?

As far as investing is concerned, I only invest in companies that understand it. I understand all stuff. And I always joke and say- But Bezos should understand this say you should understand this you should be accepting bezos actually hasn't talked too much about it so like we don't really know where he stands bezos got it you think i mean probably he understands you got money everywhere like why would bro what if his wife put all of her money that would be un-fucking-real now she gave it away her and that fucking teacher listen hilarious jeff bezos is

wild because that dude's still the richest dude in the world and he gave away what a third of his wealth like two years ago he made a pandemic yeah dude right before he started a pandemic dude he did that because he gave away half his money he's like fuck this bitch everybody's got a sniffle you thought that he wasn't happy with 52 of e-commerce he wanted 58 you need a little bit more. Yeah. Let me ask you a question for investors. Is it a smart question or stupid? This one is actually a good question.

I don't know if it's smart, but it's good. Okay. Biggest mistake I make is I always want to- That shit is bad pussy, bro. That shit is so pussy. I said it's a good question. This might be a dumb question. Don't judge me for my question. Hey, ask him how many dollars he has.

Ask him how many dollars he has. Ask him how many dollars he has. Yo, how many Canadian dollars you got, bro? Tell me how many Australian dollars you got. What's your question? How much? No, seriously. How many euros? Euros?

How many euros do you got? I actually think I got a two euro or whatever in my pocket right now. You have a two euro? I don't know. Let's see. You motherfucker don't even call it paper money anymore, dude. It's insulting. This is, look, if you really want, let's see.

You were swiping that credit card. Look at that credit card he got. Look at that anymore, dude. It's insulting. This is, look, if you really want, let's see. Damn, son, he was swiping that credit card. Look at that credit card he got. Look at that wallet, yo. Look at that. Look, here we go. Look at that top credit card. Hold on, can you show that top credit card? Nah, I'm not showing my fucking credit card number on here.

Dude, that looks like some sorority girl's iPhone. That shit is cracked up, dude. Hold on, let me go to this one. Oh, nah, this is disrespectful, bro. Son, this money ain't worth shit. Venezuelan dollars. Euro, you got something there. Son, the Zimbabwe money.

How much is that? This is 10 billion Zimbabwe dollars. It just got rocks on one side, and then it got a guy drilling on the other. It don't even have the president. It don't have the prime minister, the king, the tribe leader, nothing. This one's got something with a wig on it, and it's the Republic Boliviar of Venezuela, 50. I think this is a 50 the Republic Boliviar of Venezuela 50. I think this is a 50 billion.

Oh, I just saw 50. I don't know any. Yeah, but you don't care about this little paper money. No, of course. Well, do you care about this? Do you want the, would you rather the $10 billion Zimbabwe dollar or would you rather a Bitcoin? It's just 50. No, I'll take a Bitcoin.

All right, so hold on. So here's a good question. Would you rather $60,000 or a rather sixty thousand dollars or a bitcoin right now yeah right now i'll take sixty thousand right now because then i could just buy a bitcoin with it or i could not that's freedom yeah stupid what kind of dumb ass question was that dummy should have prefaced that one y'all deal with this dude no no for real though you would you would rather hold for the next five years you would rather hold sixty thousand dollars in cash than a bitcoin um no i'd probably rather i'd rather have a bitcoin

it depends if my friends have bitcoin or not if my friends don't have bitcoin does akash have any bitcoin or not i got bitcoin it would kill me I got it would honestly let me tell you something you listen I'm here I know it's painting the shit out of you it would kill me I got it would kill me if he sat there and became a fucking billionaire off of Bitcoin and I just had to look at him every week in his stupid shirt he has one fucking I put all my money in Bitcoin I'm long on Bitcoin dude it was shirt money absolutely kill I would rather go broke than him make billions of dollars on Bitcoin. Listen. This is my investment question. I don't think people understand what's about to happen.

This is my investment question. There's always down cycles with Bitcoin. It loses 90% of its value. You don't preface that question, bro. I got a great question. Okay, good, good. I got a great question. There we go. Here we go. He's all in on this one. Bitcoin loses. There's down cycles. It loses 90% of its value.

Is that happening anytime soon? If you're thinking of investing or do you need to just put money in now and not bro why are you asking me these dumb ass questions what the fuck is going on over here so uh sky there's two ways to look at it is you can try to you know ugly this dude's over here dropping his phone uh so you can try to time markets right's over here dropping his phone. So you can try to time markets if you think you're a trader or whatever. I know. You be hitting bottoms all the time. I am the bottom. Hey, listen. You can't laugh

if you got 100% of your wealth in fiat currency. Dude, I can't believe it, bro. Don't call my shit fiat again, bro. That shit sounded wild disrespectful, man. That shit sounded too disrespectful, bro. That's gay in Italian. He just said fiat. I know.

I think he just called me a maggot, bro. I think he maggoted me right there. Fiat? Did you? When you started this off, you asked me about when I was on CNBC the other day. Yeah. I ain't going to say the guy's name because I actually am friends with him. I like him a lot.

I'll say his name. He was coming at you, bro. Yeah, he was. He's an entertainer. It's fine. He's going to get mad because he thinks he's an investor. I'm fucking around. I'm fucking around, Jason.

I'm fucking around. I'm joking around. Jake, Jason. Jason, no. Jason. Nah, he's a fiat, right? Nah, he's a nerd, bro. Somebody told me he had a fiat haircut.

I was dying, dude. Nah. Jason. Nah, he's a fiat, right? Nah, he's a nerd, bro. I will say, somebody told me he had a fiat haircut. I was dying, dude. I was like, yo. I was like, they turned fiat into this super derogatory term. No, I got to get my money out of fiat, bro. You are the fiat, yo. Fiat is crazy. So, you got most of your money in fiat. This guy invested in Dogecoin.

Loser. Nah, I didn't actually. That's some loser ass shit right here. I didn't actually, but I should have. You did invest in Dogecoin. All right, listen. So, you could basically uh try to time markets but the whole thing is and this is a classic investing this isn't like financial but it's just a natural thing to do in investing just to clarify the question the question is when is the right time

to invest in bitcoin is it about to take another dip yeah the best thing you can do is just dollar cost average in any asset right and what i mean by that is basically you say, yo, every Monday I'm going to buy X dollars worth. And you just buy on Monday. Don't look at the price. Next Monday, buy again. Next Monday, buy again. Next Monday, buy again.

Whatever. And the reason why that's an important financial thing is, look, if you had bought Bitcoin, let's say in December of 2017, and in December of 2017, Bitcoin was at 20K. You bought it. Yeah. And you put all your money in it at one time. Yeah. And all of a sudden, it crashed 85%.

Yeah, he sold it when it crashed. And then fucking retard. Fucking dummy. He got scared. We're little twinkle toes over here. My ice is melting. My ice is melting. What should I do?

I'm talking about you. Oh, I'm still in, baby. Nah, you sold your Bitcoin. Did you not sell it? Never. You're lying in front of Pump. Listen, we can check the blockchain. We can check the blockchain.

Yo, check the blockchain. Let me see your crypto wallet. Let me see your crypto wallet. You also bought Litecoin. Who buys Litecoin, dude? That shit is so pussy. Yo, Litecoin. There you go. Of all the coins. Let me see that shit is so pussy there you go of all the coins let me see that shit bitcoin oh i'm dying inside i am dying yo he does have some stuff other than bitcoin though

what else you got i got chain link i bought a three it's at 30 yeah well it doesn't matter if you only put $20 in. All right, so... Living in squalor. All right, so listen. So basically, the whole idea of dollar cost averaging... I couldn't buy a whole fucking Bitcoin. I hate this motherfucker. You couldn't buy a whole chain to get $3? That's the joke, yeah.

The joke's on you now! That's a joke. The dollar cost averaging is if you had bought Bitcoin, all your money in December 2017, right, and then you waited you would have gone down 85 percent up you'd be up 300 percent 3x right so you're 100 now worth 300 whatever but if instead you said yo i got 10 i'm gonna start at the top of the market the worst time to buy and i'm gonna buy 10 every month or whatever right you would have way more in terms of u.s dollar value because you basically were buying at all these different prices but the blended average is lower so the whole thing of dollar cost averaging is just don't

time the market like i don't know where it's going in terms of like tomorrow today for me at the end of this podcast to buy a whole bitcoin one entire one well you're gonna put 120 000 and so you can buy 60 up front and then you're just gonna do 10k for a couple of weeks so i'm gonna put 60 up front which is would be a whole bitcoin not the little fraction of a bitcoin what do you got some satoshis is that what you got you hanging out with your little satoshis you got a little coin purse for your satoshis don't think i won't buy more than you right now look i'll just all i need is a little bit more bitcoin there's nothing funnier than fiat bros arguing with each other. Yo, yo, don't you ever, don't you ever call us a motherfucking Fiat bro again on this goddamn podcast, Pop.

Hold on. Okay, so you're saying I should buy a whole- Look at his Fiat shoes he's got on, too. Bro, look at this. Nah, that shit is Bitcoin, son. It's blockchain. It's blocks. Bro, look at it.

I wore my most blockchain sneakers to the podcast. That's fair. All right, go ahead. Don't make me put your shit up top. I got Adams on. That's fine. What is that? Adams.

Them shit look like Bruce Lee sneakers, dog. Put your fucking feet up on the table right now. Listen, you going to let me run the ad? The free ad? Dude, what is this, bro? Adams. Come on. The most comfortable shoes in the world.

No, that's 96% of my money is in Bitcoin. I can't take it out. That's what that is, bro. That shit is ridiculous, bro. My maid wears those sneakers. Adams.com. You should go to adam.com go ahead you're wearing maria's all right so i i buy a whole bitcoin you're saying yeah and then i got to put ten thousand dollars a month or a week just every week whatever it doesn't what i'm saying is like it doesn't actually matter what your plan is but you should have a plan you should stay disciplined

to it should tell me the best plan. What is the best plan? That's the one I'm going to do. Well, I mean, if I was you, what I would do right now is I would put some money in 60K or whatever, and then just do 10K every week for a couple of weeks. For two weeks. This poor guy can't even count over here, dude. How am I going to trust him on math?

Well, I count in Bitcoin, not in fiat dollars. Okay. How many bit weeks do you need me to put money in in order for me to make the most money out of this? Well, look, here's what I should say. Ready? If I was you, you're probably going to do another Netflix special soon, right?

We'll see. All right. If you do, you should walk in the room and you should say, yo, I have a shirt on. It's buttoned halfway, but you're going to pay me in Bitcoin

or I'm not going to do it. And if you do that, and they're like, why? You're just like, pay me in Bitcoin. You'll probably end up getting paid more money he's calling you over time again you pump pump i mean you could get paid a lot of depreciating purchasing power or you could get paid in i have a lot of respect for you pump okay you're you're a veteran are you not a veteran i am a veteran of of the iraq war yeah am. You're a veteran of the Iraq War. Yeah. Which seemed like a good idea at the time.

Somebody said that. And then... I mean, we could talk about it if you want. That's why he's out on dollars, yo. I'm just saying, it kind of fell apart. That would be an understatement. Is that Bitcoin? Did it fall apart or did we just not leave?

Ooh. Okay. I mean, we could talk about the current administration that dropped bombs in another country before they bailed out the small businesses and individuals. Listen, I'm with you. We could criticize them all day long. I just want to make sure Bitcoin isn't another Iraq war.

Do you know what I'm saying? Like, it seemed like really good at the time. We're like, yeah, this is what we got to do. And then later on, we're like, what the fuck? All right, let me ask you this. Yeah. What would have to happen and for how long until you were like, yo, this is the game?

How would you rate this question before you ask? I don't know. I just ask good questions. Yeah. What would have to happen and for how long until you were like, how would you rate this question? This is the game. I don't, I just ask good questions. Holy shit. I only ask you questions the whole podcast. Let's go. All right. What,

what would have to happen? And for how long? Call me Fiat. All right, go, go, go. More than your Fiat legs.

Let's go. Let's go. Let's go. What would have to happen for how long until you're like, yo, this is real? What are the things that you're like, yo, if this happened, I'd be like, oh, shit. Akash would have to make money. Okay. They already do.

They tax it. They already do. No, they already do. They tax it. No, no. Akash would have to make money. Oh, yeah, yeah, yeah. All right.

Well, he's up. I'm up. Fucking A, dude. Fiat. He's made more money in Bitcoin than you. He's such a Fiat. Didn't I tell you? I was like, yo, he's up. I'm up. Fucking A, dude. Fiat. He's made more money in Bitcoin than you. He's such a Fiat. Didn't I tell you? I was like, yo, I bought it.

You guys are going to tell that to a guest, and the guest is going to be like, the fuck is Fiat? I've been looking for an F word to replace the old F word, and let me tell you, we are some happy boys on this podcast. I was like, why'd you buy it now? Why'd you buy it now? When did you buy it? Yo, what did I buy when you bought Bitcoin?

I don't know. Another shirt? No. Fucking idiot. Silver. And I was bullish on silver. I came in with my little bullshit. So this is exactly what happens when you go on Twitter and you just search GameStop and

then you see, oh, where are they going to go next? Silver squeeze. And then I know. No, I bought the silver before and I got lucky with the squeeze. Squeeze that bitch, nerds. Did you get out? No, I didn't get out. I'm back down, baby. You started off saying that you had no investments, then you got silver. I do have silver. No, I got a few investments and I'm about to take them all out okay you want to see what i'm invested in all right and this is not probably not but go ahead this is not uh investment advice i gotta find my td ameritrade shit on my phone while you're pulling that up i just wanted to ask um are there

any threats if bitcoin becomes too valuable like say some people say it's a bad thing if it hits 100k yeah i think goes back to the whole thing of just like like the power dynamic in the world right kind of the geopolitical uh kind of competition the government what do they think all that stuff in my opinion uh price is definitely a big component right if you see all of a sudden it's 100 150 200 250k like this thing's not stopping at 60k right it's very obvious that there's way more demand than there is supply right now so price is obviously continuing uh i don't know where there's like a trigger point right is it maybe it can go all the way up to the uh market cap of gold right

which would be about like 500 000 in bitcoin and people like wait a minute it's just as big as gold like that's crazy right uh maybe it's a million dollars right you've been on your own record saying it's gonna be way it's gonna be a million and i never actually said it publicly so here we go uh i think it's gonna be a million dollars by the end of 2026 wow one bitcoin is worth a million dollars after the next half 18 months after the next half i gotta call my fiancee because we're gonna make some changes to our lifestyle but i think if you if you go back and you start to think about um in terms of like how big is too big or like what we kind of pull people in i think it's less about like oh hit a certain number.

And to me it's actually more, uh, the adoption. So all of a sudden, like every bank in America is like, yo, we're doing this. It's gonna be pretty hard to kind of roll that back.

And that's what we're seeing right now, right? Is you got all these banks and stuff. So like, as the price goes up, the price is going up because all these banks are showing up like Tesla ball, $1.5 billion.

It took 7% of their cash. And they were like, you know what? this dollar thing's not such a great idea we're gonna just buy this bitcoin thing i got tesla stop what i should have gone down so like all of a sudden now like what are you gonna do you're gonna go to the fortune 500 companies and be like yo you're breaking the law like ah that feels like maybe they will right i don't know like anything could happen but that just feels like that's a little crazy. And so I think what you're starting to see here is ultimately, if they were going to do something, they would have already done it.

And so now what they're trying to just figure out is like, yo, how do we benefit from it, right? I don't even know why I'm listening to this motherfucker. I'm up 14% today, bro. Look at that shit right there. You're up 14% on what? Look at that shit. I'm actually up 0.14%.

You fucking Fiats. Fuck with me. Fuck with me, guys. Listen, silver ticket. Are you sure that's not your 10-year return? No, I'm getting raped out here in these markets, dude. Listen Silver ticket You sure that's not Your 10 year return Yeah dog No I'm getting I'm getting raped out here

In these markets dude So maybe a smart way To invest Would be invest In the companies That are gonna adopt it first So definitely That's one way to do it

Like the whole thing Again it's just Like anything right There's people Who wanna be diversified So even if you believe That the dollar Is gonna be the greatest

Thing in the world forever Whatever How do you feel About diversity He loves it That's why you don't Like the white people That control the dollar is going to be the greatest thing in the world forever whatever how do you feel about diversity he loves it that's why you don't like the white people that control the my whole my whole thing when it comes to financial markets is uh i actually think that there's a lot of um uh kind of bullshit that's spewed by wall street financial advisors all this kind of stuff and again everyone's different so there's no like one size fits all solution

but if you look at people who build real wealth they don't own a hundred stocks right they go they do the work you have to take personal responsibility you have to understand okay it's my money i gotta figure out how to grow it i'm gonna go and i'm gonna have concentrated positions and things that i think will work by the way that also means if it goes wrong it's gonna go down right go back to the whole warren buffett thing he may not understand bitcoin dude's pretty smart about investing he says concentration builds wealth diversification protects it if you're not wealthy stop buying 500 stocks because you're $1 going up to $2. It doesn't have an impact on your portfolio.

So that's one. The second thing I think is that people want to invest in all kinds of crazy shit they don't understand. So it's like actually if you're like a sneakerhead, you'll probably make more money investing in sneakers than you will in the stock market. That's a great idea. Because you understand sneakers. So like go invest in sneakers. So should not invest in bitcoin because i still don't know what the fuck it is well what socks do you have right now because that's going to scare the shit out of me okay you ready no berkshire hathaway b your fiat couldn't buy a right no i couldn't

that shit was dumb expensive uh i got jp morgan up 1.28 percent today it's your poor asses i got i got iwm do you know what that one is no what is that iwm bro that shit is someone told me to buy that shit it's down i got disney your boys even you know i got xme i got silver i got microsoft and i got nvda which i thought was november until last week so yeah that's what i'm doing but your boy's up 0.14 so you got with a boomer portfolio over there i do have a boomer portfolio you have berkshire hathaway jp morgan microsoft and disney i do what is going on over there? I just asked a wealthy dude that was successful that's older, what should I get in? Yeah. And he's like these things.

But I'm going to sell it all, and I'm going to get into some coin, dude. Actually, I don't know if I'm selling it all, but I want you to honestly give me an investment strategy that you can put your stamp on. I've been saying this for a long time now. Every single person in the world should have some exposure to bitcoin i don't know if that means 0.1 of your portfolio or 20 i need you to say exactly what i should do how old are you 37 years old how much money did you make last year i can't say publicly okay uh you say you're 37 yeah so if i was you i would be more risky than not you got time to make it up it's not like you're 65 and trying to retire and so i literally would put like 50

in bitcoin 50 of my cash that i've amassed or 50 of what i made last year of your cash because here think of it this way there's two worlds there's the fiat inflationary unlimited supply world and there's the digital decentralized finite supply world right if you tell me that you think that the old world has a 99 chance of surviving and this one only has a one percent chance then you should be 99 and one if you tell me you think it's 50 50 then be 50 50 if you think it's 99 and one then be 99 and 1 yeah back to like what i was saying earlier i have no question that the blockchain technology is going to be what wins right like i have no question that like streaming is going to be what wins when it comes to television

right but my concern is is it bitcoin ethereum or these different brands that utilize this technology that i believe in are those going can be successful ones but they're going after different things that's the whole key right is bitcoin is a currency that is specifically created to fix the money right i got a buddy marty bent who always says like people come for the money but they stay for the money and what that means is like people do exactly what you did what i did what everyone does yeah is there like yo should i get rich off this sign me up where can i go right so i started i did mining and i was like oh shit this is sending me all this stuff like this is amazing like oh okay well what else can i do right you start like looking at it but then what ends up happening is you get thrown on this rabbit hole and you get educated you start to understand like what is money wait why are they printing so much how does

this work why is this one better? And you start to learn. And then all of a sudden you're like, yo, if I don't own investable assets, I'm screwed. Okay. Why don't they teach us this in school? There's like 14 states in America that teach financial education. Why don't we teach people that? Right? And so you start to understand like, okay, like the system is not really set up for us

to be successful and so you either get lucky because somebody somewhere told you like you'll buy a stock do whatever or you have to be smart enough and go look for the information or you basically have to pay somebody to do it for you right with a financial advisor or whatever and so you start to realize like okay hold on a second like how do i build wealth you start to look at it and like you're not going to get rich off your salary you're not going to get rich with no investable assets and you're not going to get rich because you fucking won the lottery and so you got to do is you got to go actually do this stuff and i think that's where like people start to like realize like you know they're not coming to save us right and this goes back to and it's like a more macro picture of like the government

giving you fourteen hundred dollars is in one hand they're giving you the money. In the other hand, they're jacking up the cost of living. And they're literally just saying, yo, we gave you $1,400. Like, look how great we are. And then all of a sudden, when you try to go use it, how come if the government handing you money was supposed to solve all our problems, how come literally we have a wider wealth inequality gap now than we had 12 months ago? They gave us all this money. They printed $4 trillion, $5 trillion, whatever it was. And they literally gave us $2,000 plus, right,

in terms of the people who are eligible for it. They gave us unemployment insurance, all this stuff. So if all of a sudden the wealth inequality gap is worse. Yeah. What the fuck is going on? Maybe the money's just messed up. Okay, Akash has to pee. I can see him.

He's about to piss his pants. I'm about to fucking explode. But we'll let Akash has to pee. I can see him. He's about to piss his pants. Fucking explode. But when, uh, we'll let you get out of here. Do we take pee break? We're going to take a pee break. And then I want you to talk about,

uh, your best friend, Peter Schiff. All right. We're back from the pee break. Um, we should wait for miles. Cause he's coming back in.

Right. Oh yeah. Well, that's fine. That's fine. Okay. Uh, what does miles do?

Uh, miles is editing another episode. We had, uh, Chris Hanson, your biggest nightmare on the podcast. Did he hit you with the line? Oh, yeah, he did.

Well, you've been hit with that line before? What was that like the first time? I thought I saw you on the show, but go ahead. All right, so we have a couple questions before you get out. Obviously, I want to hear about this Peter Schiff beef. You guys are always beefing. But before that, let's say we get rid of this fiat currency. It's OK. Miles, come in. It doesn't matter. Let's say we get rid of fiat currency. We get rid of paper currency. How do we do illegal shit? How do we buy drugs? How do we pay for pussy? How do we do things that we don't want people to know about and that is a real problem because sometimes you need to do illegal shit if you're rich you need a liver you're gonna have to buy a liver from somebody right you're gonna have to do things under the table you know you want to get a discount on someone's car or whatever like that you can't have it minted onto the blockchain what happens

to that market it's important to remember that uh in many cases the most illegal stuff happens through the traditional financial system just in terms of like, you know, go look at how much the banks have been fined for just laundering money through their banks, right? Fucking Epstein. Yeah, I mean, it's basically you just get into this weird world of like we're going to go lock up the drug dealers on the street corner, but then we'll let you launder like billions of

dollars to our bank, but you're cool, whatever. So people, I think, are like onto that game now. So I think that that will continue where like you have these regulated entities that basically put their stamp of approval like not illegal, not illegal, not illegal, regardless of what the currency is, and it'll end up being illegal. So I think the big time illegal folks will do that. In terms of more what I'll call the street crime, whatever that ends up being. I want to buy some weed. I'm in a state where it's not legal.

How do I pay for that fucking weed? So there's two things. One is there's still a lot of people people use cash for that stuff for obvious reasons right and so i think that cash is not going to go away tomorrow for the number of years uh moving forward like people still use physical cash to do but it will go away eventually it will i go to van lewin to buy some ice cream you can't use cash yes my dad's joke used to be whenever he would pay for something at a diner was do you accept cash that was his dad joke because who wouldn't accept cash, right? There are places that do not accept cash in his lifetime.

Yeah. What the fuck happens when all these places stop? There's also privacy coins, right? In terms of like, there's all this like R&D and innovation experimentation around, can I basically use a cryptocurrency asset that isn't able to be tracked, right? Can't be seen and all this stuff.

Jury's out in terms of like, will that stuff persist as a private focused cryptocurrency as a standalone? Will the technology be ported over and eventually incorporated into Bitcoin? Like I'm not technical enough to know like what's gonna win, what's not gonna win, but like there's a lot of effort around privacy in crypto assets. And it's very interesting for this exact reason. And then on top of that is maybe the asset itself isn't necessarily

private and have this privacy technology, but the way you use it could be private. And so there's all sorts of, you know, really at this point kind of experimentation around like, well, what if I have Bitcoin, which technically isn't private, but I could send it to you in a way or what if i could take my bitcoin and i could basically put it in this thing called like a coin joint which when i put it in there we all put it in there and then you don't know who's and then i take out another one and then like yo it's like you know i was running and then i had a red shirt i ran into a room with a bunch of other red shirts like you now you don't know who i am like see ya so like again some of this technology is going to mask it a bit some of this technology is going to

end up being super super valuable and some of it we're going to look back and be like man that was really stupid idea but like it's important for all the experimentation right right so we are going to be able to solve a problem i think so i'm always i'm a i'm like a long-term optimist and technologist right like like technologists will figure out solutions to real world problems over time because that's the financial incentive and also it's like the society incentive yeah and so if people want to do something and there's not a way to do it technologies will figure it out al one thing so um you explained this earlier i think i got it there's one blockchain and then a bunch of miners that are constantly doing all the computing and confirming of all the transactions. What happens?

You said you invested in some company that's able to send a Bitcoin across the world like that. How is there enough time to get confirmed by 51% of these miners if it already sends it? If it's in one second. So layer one is the process, is like the mining process you talked about in terms of everyone is confirming it that these 10 minute blocks right so go back to the monopoly example it's like if i held up the piece of paper with all the transactions and we were all like yep looks good right whatever uh layer two uh specifically what strike is using is called the lightning network and so very simplistically uh basically you and i want to transact with each

other we could open up a channel and i want to transact with each other we could open up a channel and i can send you the bitcoin and then at some point in the future you basically write it to the blockchain you say yo i got the bitcoin now and like you can basically uh kind of contribute it into the transactions so you use the layer one as a way to keep security and keep kind of provenance but at the same time you have this fast transactions so one way to keep security and keep kind of provenance. But at the same time, you have this fast transactions. So one way to think about it is, and this is like a really weird way to think about it, but like imagine if you were on a highway and the highway was backed up or it was going a little slow and you got off the highway, went on a side road, right? There was no traffic and you got back

on the highway in some like weird way that that's similar to these layer twos. It's a faster way to transact, but you can't take the side road all the way to your destination. You gotta get back on the highway, right? And so maybe it helps in the short term, but you still gotta get back on. But doesn't it kinda fuck up the system

because now it's like, hey, you could've gave me this Bitcoin last week, but I just now said that I got it now. It's like, you could've did a bunch of nefarious shit throughout that. You're going down the rabbit hole. So there's technical solutions to prevent that from happening, right? So the example I'm using is like super simplistic, but basically you're able to do both. You're able to keep the kind of integrity of the Bitcoin blockchain and network and who owns what in the transactions, but you're able to do it at the second layer with these channels. You can essentially do it in a faster, cheaper way.

So I always caveat it. I'm like, yeah, there's a bunch of magic behind the scenes that makes it work, and more technical people can explain it in great detail. But from a use case standpoint, the second layer allows for, it's easier to transact back and forth from a time perspective and a cost perspective

versus the layer one. Who is Peter Schiff, and why does he hate you so much? Peter Schiff likes me. I like Peter Schiff too. I think that we both recognize that I'm Batman and he's the villain. So it sucks to be him. Who is Peter Schiff? Peter Schiff is actually an incredibly intelligent guy.

He is probably one of the best known gold bugs in the world. And so Peter Schiff has this really unique ability to understand the macro environment. What's a gold bug. They're into gold. So a Bitcoin or versus a gold bug. Yeah. Right.

Like another, another word into gold, into, into Bitcoin. Yeah. So if you think about bug, the Fiat's yet. So,

so if you think about, uh, Peter Schiff, Peter Schiff has this incredible understanding of the macro environment and he's really really been on top of all kinds of different things that have happened from what the government response to the covid was he uh became really famous for uh calling the 2008 financial crisis some people would argue you know if you call a bubble every day eventually there is one like you can't say you're a genius right but at the same time like

he did call it whatever no no and also like i really i've learned to think that about this michael berry guy a little bit like he calling a lot of yeah broken clock is right yeah broken clock yeah so like like i really respect peter shift in terms of like his understanding the financial markets and his uh belief in sound money now talk that shit well we look we agree on all the problems we actually agree on the solution. Fuck Jay-Z. That's what just sounded like. We agree on sound money. That ether beat about to drop.

Give it to him, bro. Listen. What's up? We agree on all the problems in the system. We agree on sound money as a solution. Which camera's on? Yeah. Get it.

This one. Yo, Peter, listen. But you a dinosaur dog. You literally got this gold. It's physical gold. Ain't nobody want the shiny rocks. They want the digital asset. They want sound money in a dinosaur dog. You literally got this gold. It's physical gold. Ain't nobody want the shiny rocks. They want the digital asset. They want sound money in a digital form.

That's why everyone is selling gold, dropping gold, and they're buying Bitcoin. I love you, but you got the problems right. You got the solution right. But you got the application of the solution wrong. Maybe he's just trying to drive the price down so he can buy the Bitcoin. Listen, here's a funny thing about Peter Schiff. His son, Spencer Schiff, came out of nowhere. All of a sudden, Spencer Schiff came on Twitter like a year ago and this

dude literally recently said, nah, I'm not going to listen to my dad. I'm not going to hold any stock. I'm going to sell everything and he just bought Bitcoin. Are you saying that you're his dad? No, but what I am saying Are you Spencer's dad? Who's daddy? Who's daddy?

What I am saying is it's a smart move right peter understands he's like look i gotta keep my reputation intact i'm the gold bug i'm gonna keep my business going right but yo my son's gonna be wealthier than me so he's gonna buy all the bitcoin and then we're gonna benefit from the bitcoin we rock hoes y'all rock fellas i mean i i didn't say it a poet did but yeah so peter shift just stays getting bodied on twitter is what you're trying to say but peter shift likes it because it's attention right and if you're in the attention economy then hey like who's talking about you're not even giving him gold economy anymore no

bitch i'm gonna give him a little attention listen hey it's good bitcoiners love peter shift because when peter shift says stuff it usually means that if you buy bitcoin then it's gonna go up in value soon. God damn. Wow. He paints the bottoms. He's just like, he'd be real quiet. Bitcoin goes from 50 to 60. He don't say a word. Then all of a sudden, it goes from 60 to 55.

He's like, oh, it's going to zero. And then next thing you know, it's like, all right, man, whatever. Look, here's what I will say, though. He's been right a lot of times. Yeah. But the thing he's been wrong about is gold's down over the last six months. People are saying they don't want gold. Bitcoin's up like 500%.

Yeah. In the last 12 months, Bitcoin's up, I think it's like 550%. Gold is up like 19%. That's little boy numbers compared to Bitcoin. How can it go to zero? That's the last thing I want to know. How can it go to zero? Just so I'm prepared want to know how can it go to zero just so i'm prepared for it when i go all in and that shit hits the fucking bottom just tell me how it can

go to zero so i know the more i'm here yeah the more worried i'm gonna be when you do go in please believe i'll be in brickle looking for you just screaming Just screaming, pumps! It's down to 45! I bet the house! I'm being serious, man. If I go all in, I need your address. I did not dollar cost average. I bought it all right at the top. That's all I know how to do. I don't buy part of a sneaker.

Give me the fucking breads. I want the whole thing. When you shop at Payless, you don't got to buy that much. If you put your Fucking shoe up Put your fucking shoe up Right now I can't believe This guy's talking shit

Look at what he's wearing Right now I strategically placed myself Don't you cap for him With his bullshit Look what he's wearing But he was coming At your shirt earlier

I didn't say nothing About that Yeah cause you know This shit's fly But this shit with the feet First of all Put your feet up there It's Adams

Listen You're a size 8 You don't talk about feet ever. You don't want this, dog. You don't want these flippers, bro. Bro, you got so much room in the back of your heels. They ain't even touching the back of your shoes. You got clown shoes on.

You got fucking clown shoes on. No, it's Bitcoin. There's room to grow, baby. You know what I'm saying? We got to do this. Let's go. All right. It's not going to zero.

Here's why. Okay. I promise you it's not going to zero. Here's why. Okay. I promise you it's not going to zero. I mean, I believe that. I promise. You know why? Because I'll buy them all if it goes to a dollar. It might go down a lot, but it ain't going to zero.

What do you think it will go down to? I don't think it's going to go over a long period of time. Again. A short period of time. Because that's all I care about. The short period of time is impossible to know. Because so many things can happen. Like, the other day, they're like, India's going to ban it.

Everyone's like, I was loving my Bitcoin. Like, the fuck? If India bans it, that shit's going to be more valuable. Yeah. Right? So it's just investor psychology plays so much into it. Because you remember, this is a 24-7, 365 market. Right.

And there's not a lot of electronic trading that happens. So the stock market's super rigged. They got, like, this is the funniest thing about the stock market. Yeah. If the stock market goes down more than 7% in the day or seven half percent whatever it is yeah they shut it off yeah that is kind of fucked they're like yo time out we're losing too much money everyone stop like what bitcoin went down 50 in the day and 60 of people didn't fucking sell this when did it do that in march of last year march of last year that was the time yeah

yeah we fucked up yeah so but no but here's the whole thing is is it's not going to go to zero because there'll always be people who will believe in it. Could it go down a lot? Sure. Could it go up a lot? Sure. But ultimately where people are going to psychologically shift at some point in the future, I don't know when,

is they're not going to price it in dollars anymore. So this whole idea of like, is it worth $60,000, $70,000, $100,000, $20,000, like whatever, it's like, how much is the dollar worth? You're like, yo, $1, $1. Wow. And so when you start to just denominate things in the actual asset, they're just going to be like, yo, how much is that gold-plated AK-47? Like, yo, it's 100 Satoshis.

Okay, cool. Do you have 100 Bitcoin? I have 100 Satoshis. Of course you do. How many do you have? How many Satoshis? I got 100 more Satoshis than you. You got more Satoshis than me.

That's facts. I got more cash than you. You broke fuck. I know what your Netflix deal was. I know what his Netflix deal was. I just got no money at all. I just realized that. I'm taking financial advice from a broke motherfucker

who got diner waitress sneakers on and this guy's trying to tell me shit. I'm rich. How do I get my money into Bitcoin? Since we've been sitting here, your dollar's gotten less valuable. I know! It's breaking my fucking heart. Mark, say something mean to him.

Mark's the coolest one in here. He's been chill the whole time. Shut the fuck up. You lost us. I'm going with Ethereum. What are you laughing about? You own Chainlink. Come on, baby.

NX on my Chainlink. I love everybody. I love everybody. I've been buying Bitcoins the whole show, for the record. That's why I haven't been talking. There's multiple people in here who have already told me that during the show they've been buying Bitcoin, but go ahead. Wow.

Okay. Wow. And it wasn't Andrew. Oh, by the way, this show is not an investment advice show i think i have to say at the beginning of the podcast as well and there's like legal liability for that that being said we're all in yo my girl can be so pissed when i sell her engagement ring tonight her shit is gone don't you want a bitcoin baby that's what i should have put on her fucking ring okay i i have two

questions first question yeah when did you buy your first bitcoin uh i didn't buy the first well actually i kind of did in 2006 so i was actually like really late to this like that's the crazy part yeah is there's people who i know who uh i know one guy who i think he first bought a bitcoin no he mined it in 2010 max kaiser who's the guy who gave alex jones the 10 000 bitcoin i gotta think it was 2010 maybe even 2009 like that's how early some people were into this for his credit 2009 whatever in 2014 i worked at facebook first time i heard about it i didn't do shit didn't google it didn't do anything i was kind of like andrew you know like an idiot yeah and successful successful in 2016 uh it wasn't facebook it was basically a kid pitched me on

mining and he was just like you know it's like a data center blah blah whatever so that's where i started but it was like really small and i was just like how does this work or whatever so you were on your computer just doing like math problems and fucking i wasn't doing shit i basically paid somebody else to figure out all the computer stuff can we get into that that's something we could get into miles is right here miles the miner baby bitcoin donkey so so uh and then in like beginning of 2017 is when i was like yo this thing because everything was just going up in value it's the whole idea of like the greatest thing that happens with bitcoin is the price goes up and when the price in u.s dollar terms goes up what does it do it attracts people's attention cnbc starts talking about it the media

starts writing about it people are tweeting about like all stuff people's attention goes and then what they start to realize is like wait a minute there's actual value here and so there's cycles that happen right and as you were talking about earlier like the boom and bust cycles and so there was one let's say i don't know 2011 there's no one like 13 14 right there was one in 16 into 17 and now we're in one now and so each one, right? There was one in 16 into 17, and now we're in one now. And so each one of those cycles brings more people in. So it's almost like you could think of it like,

what year did you graduate from college? Like, you know, what vintage are you? The 16, 17 cycle is when I came in. And then from there, it was just like, oh shit, this is valuable. And then the one thing that everyone, every Bitcoin real great, two things. One is they don't want the US dollar price to go up.

Bitcoiners want the price to stay or go down because they want to buy more Bitcoin. So they're trying to acquire as much as they can. So they don't want the US dollar price. They don't want to hack it either, but they don't want the dollar price to go up. The second thing is they constantly feel like they don't have enough, which is this weird thing. I don't know if you guys know who Michael Saylor is, the MicroStrategy strategy guy like he owned 90 000 bitcoin right and then all of a sudden he was like i think i should buy 15 million more i bought 300 more like dude you bought 300 million you bought 300 bitcoin more you had 90 000 before and he was like i think i should buy another 220

or whatever like like he's got literally billions of dollars and he still wants to buy more right so it's just like deep-seated belief but that's kind of how i think of the the cycles and then when i came in do enough is that you had another question no he's got another question so i'm 24 all right there's still hope for me compared to some people here um and i'm wondering shit for 24 doesn't i'm wondering bro have you looked in the mirror i'm 37 pop this guy's 24. How old are you? 32. You're 32? Yeah. Oh, you look worse than me for 32?

For sure. 100%. Listen, do you have the goatee because you can't grow hair on the side? Can you grow hair on the top of your head? Look at your jaw. Not right here. Not right there. Stop scratching your shit while you're buying a Bitcoin. You look like you've been mining your scalp.

I'm not listening to these fiat jokes i'm trying to save my financial career okay come on come on i need to buy a house one day so i'm lashing out right now okay i'm fucking lashing out what advice do you have for like recent college graduates that are looking to invest in cryptos like how should i diversify my portfolio i i think it's the same thing right of like when you're young here's a really interesting concept where um if i said to you are you wealthy most people would think in terms of dollars right or like financial assets uh if i said to you uh would you switch lives with warren buffett and you get all of his 90 plus billion dollars but you gotta be. Would you do it? No. No, right?

So actually, the more valuable asset is time, not dollars. You can't buy more time. So this whole concept of time billionaire. So a million seconds is about seven days, or I'm sorry, 11 days, right? Time for a billion seconds is 31 years. So at 24, you probably got two billion seconds left in your life There's only got one bill I know

No Bitcoin no time So two billion seconds the the greatest advantage you have is that you've got literally got you know 15 years More than he does in terms of financial market so like let compounding for you. The thing that we haven't talked about is Bitcoin has grown 200% compound annual growth rate for 10, 10, 11, 12 years, whatever it's been. Right. So like if you start to dollar cost average now, you just constantly keep doing that over time. That's true of every financial asset. And I think that the thing that young people always do as a mistake, and I did the same thing was like, you just want to be rich today. You're like, yo, I want to be rich today. What can I do? Like, what's the, you know, zero or hero type thing to do? But it's actually not the way that people build wealth, right? Jeff Bezos didn't build his

wealth over a year. He's been only doing this for 30 years, right? And same thing with all these other people. And so it's like, okay, cool. Set a goal. Let's say when I'm 30, so you got six years. All right. I want to have a million dollars when I'm six, uh, when in six years. Cool. Do the math. Just back into it. All right. If I invest 20 bucks every week and it compounds at 10% a year for six years, what do I have? Okay. That's not a million dollars. All right. Go back. And you just start to play with the numbers and you just come up with like, yo, I should put a thousand dollars in the market. And I don't know what the exact numbers are, but a thousand dollars I should invest every single week. And if it grows at 10% a year, I'm a million dollars in six years. Okay. Now how do I get a thousand dollars a week to invest? Right.

You just back into it. And what I think ends up happening is like, we live in this weird world where everyone looks at the end result, but they don't back into the plan. And so it's like, uh, you ever heard these people that are like, yo, everyone's like got the dream, but not the plan, but the plan is actually what gets you there. And so the single best thing I've ever done, and I'm not going to go into details before you ask is, uh, I basically started to create, um, uh, like a net worth calculator. Right. And so I literally use an Excel spreadsheet every month. I just update it. And you can literally watch the numbers move. And it's not cause I give a fuck. Like what, you know, if it goes up, down, whatever, like in the short term, but it's just, I know, yo, is there more money

in my bank account this month or last month? Right. Did the stocks that I own, which are zero go up or down, right? Is the real estate, is this like all this stuff? And so you start to track it and it goes back to this whole idea of like what you measure, you'll move. And so like, if I said to you right now, what are you worth? Like you'll start trying to calculate, you know, Hey, here's what I own. Here's this, here's whatever. But if all of a sudden I said to you, cool, you got to grow 10% between this month and next month. All right. Then you start thinking like, how do I do that? And I think that's like the biggest thing is it's the like psychological concept of financial planning, but not in the sense of like, yo, I want to diversify 60, 40 in bonds and all this bullshit. It's like, yo,

I have a number that I think is really important and I have a timeline on which I want to hit that number. So what I'm going to do is I'm going to back into from where I am today to that number. What do I have to do? And then you'll know I'm either tracking to it or I'm not. And if you're not tracking to it, like go do something else. Like it's not working, do something else.

I think that's the key to this whole thing. But people are just like, yo, uh, I want to be a millionaire. Okay. How are you going to do it? Uh,

we get a million dollars. Like not going to happen. Right. Thank you, Anthony. Yeah, man. It's,

uh, it's what you say. I i like your shoes those shoes suck i'm team adams.com dude who's adam dude yo listen you want to know the adam story listen you ready no listen here's that here's the adam story yeah you're gonna feel like a dickhead now yeah if it's anything like tom he gives the shoes to the poor kids no even better what's up with these white boys just making sneakers, dude? Just buy the fucking sneakers the black guys made cool. It's that simple. What is this?

So they're both from Pakistan. Put your shoe on the table. They're from Pakistan? I'm out. They're good, dude. I'm out. They're all good, dude. These guys are trying to outlaw Bitcoin.

Dude. So Wakasa and Sidra. A bunch of fiat. Adam is for the bomb. India should drop on them. So Wakassan Sidra basically grew up in Pakistan. They wanted to get out. So it's great.

Like six years ago, seven years ago, whatever. They don't even know English, right? Yeah. They basically come in. They get into Y Combinator in San Francisco. And they're working on a different shoe company. And then there's like, yo, the only way out of this place is we got to build a company. So they end up building this company which are these shoes

they got a co-founder of Reddit Alexis Ohani and 776 like all these folks who all backed them and basically what ends up happening

is they went and they convinced tech people that they're the most comfortable shoes in the world as soon as that happened then what happens next

then the artistic people then just keep going like that no it hasn't it hasn't kept going I see how it's pocketing it looks like you're wearing burkas actually

now I'm gonna give you your cell phone number they're coming for you No, it hasn't kept going. I see how it's pocketing. It looks like you're wearing burkas, actually. I'm going to give you your cell phone number. They're coming for you. But that's the thing. Only tech people wear these things. Nobody else wears them. Do you want to know what else tech people do?

What do they do? They use Facebook first. They're on Clubhouse. They're like, basically, they know all the trends before anybody else. Yeah, but not fashion. Nah, they don't. They don't get no pussy first. Right? All the tech people are just coming to Miami. Like, how don't. They don't get no pussy first. Right? All the tech people are just coming to Miami

like, how do I get into Carbone? You know what I mean? They're nerds, bro. How do you know they're asking? Are they asking you standing outside in line? Yeah, they are asking. Can you get me into Carbone?

I'm like, how do I get into Bitcoin? It's a little knowledge swap there. It's a knowledge swap. But no, we can't act like they understand. If you want to go to Carbone, you just get in touch with Andrew.

Exactly. We got this. Dove? no no but the uh the thing with tech people is they don't understand anything that like um what is it called hardware like that's what happened with google with the glasses like google just do the nerd shit don't make glasses because we're not gonna wear your nerd things because you don't know what looks cool yeah the glasses was a little weird anything they try to do is physical doesn't work you think the apple car is gonna work though right of course apple car works this apple's not nerds bro drew mentioned this earlier that all finance videos they give this disclaimer why is that why what's the disclaimer and why is that the disclaimer is just none of this is financial advice so it's all financial advice but none of it is yeah yeah we we have absolutely zero clue what any of us are talking about why do you give the why so we don't get sued well yeah one one is so that people aren't don't get

sued and then also too i think is uh look probably the most important thing that over the last year i've just been like hammering on people is you have to think for yourself it is so important to do your own research educate yourself just do it yeah i don't want to think for myself i've been thinking for myself for a while and you've made me feel horrible about myself today i mean absolutely horrible like one of the things i was really proud of was the amount of money i have in my bank account and now i feel horrible about it i was like i did this in my lifetime you know my mom didn't even go to college and i did that and you took all that away from me you fucking pizza boy what the fuck i'm so goddamn upset at you pumps i'm so upset but i'm all in fucking all in pumps i'm out of mining i'm saying

yeah dude i'm so upset but i'm i'm gonna do it i'm buying a coin today you want to know who's been into bitcoin for a long time everyone forgot who uh ray jay probably my father got in he really did my man appreciating assets 50 cent was it was accepting bitcoin for like an album but i think he i think he sold it for dollars which wasn't that smart uh i'm pretty sure kevin durant was in really early uh like 2014 he's an investor in coinbase i'm pretty sure as well yeah 35 ventures uh murder beats is big in this mr beast like all these guys uh who have uh basically just said look i gotta figure out what it is i gotta play in the game right point you can't stop the future i think our thought is is this the future is blockchain

right but we don't know if this is the future right it's basically what our whole thing is yeah i'm demoralized but i think are you gonna buy 120 000 bitcoin now i'm gonna do whatever you tell me to do you have about 30 minutes left of telling me whatever you want to do and i'll probably do it and then on my way home and then you'll think for yourself i'm just gonna go the fuck was that asshole talking about what the fuck is he he was from rhode island wait where are you from huh where are you from rhode island i knew you're from north carolina no no you're not from north carolina okay i'm not from north carolina you you don't sound like you're from north carolina at all like chicago or something not north carolina what part of north carolina

raleigh really really that's crazy i hear a little now a little bit i don't we're going to do a show in raleigh which you're not invited to that's fine fucking asshole dude you should accept bitcoin oh if you guys could process it shit's getting weird now dude i'm just so bummed okay so i buy a coin and then i put some money in every week for an extended period of time yeah but definitely buy the coin now you should yeah uh i should because i might be more liquid than the average investor but you would say for the average person they should put dollar cost average dollar cost average okay fine fine but you think that i should get in now because you have no bitcoin i have no bitcoin and i'm going to mitigate that risk over an extended period of time with it's and people in the bitcoin community

laugh about all this stuff like there's tons of memes i'm sure you've seen all this stuff on twitter or whatever yeah but uh it is legitimately becoming more risky not to own any bitcoin than to own some one of my friends who was dumb early in bitcoin told me this was like 2017 i didn't listen he was like i think at a certain point it will become irresponsible not to have any bitcoin and i think we're getting to that point pretty soon fucking a okay is there anything that pumps you have your own uh shows that i want them to know about uh one can you tell us really quickly about them like are they i basically do this exact same thing but just with cooler richer people i'm assuming there's no video on this podcast because you wouldn't dress like this but uh yeah bro we

need to switch the digs dude i need you to take 10 percent of your coin out and i need you to go to zara i'm rich i don't need to do this yeah i'm with it I need you to take 10% of your Bitcoin out, and I need you to go to Zara. I'm rich. I don't need to do this. I'm with it. But if you're going to say like- Listen, I'm not listening to you motherfuckers about fashion advice. Bro, look at you, dude. What is this guy dressed like?

You look dressed like you should be disappeared. This is, you got to get into this Miami shit, bro. You're trying to do this New York life still. You're not in New York anymore, man man you're in miami are you staying no should i i'll do anything you say 30 minutes we're thinking we're thinking of doing half and half okay yeah so we're gonna maybe half uh new york six months new york six months more half in uh new york or or Miami we just extended for another month so we'll see how long we keep extending

what should I do where should I live well I'm here now full time yeah question before we get out of here say your shows and then I have one final question people can go on twitter or just pompletter.com pompletter.com

I send a daily email to people and basically just like yo this is what's happening everyone chill out when the shit goes down i'm like chill out when shit goes up i'm like this is why it's going up okay that's fire i'm signing up it's easy okay and then obviously you have your shows and then you could see on cnbc you arguing with nerds and stuff like that it's not really arguing because it's kind of just dunking on them all yeah you're just dunking on these nerds. I mean, you just smile and laugh and they get real mad

and then you're just like, yeah. And they get more poor. I mean, do I need to say it on the show? Can we just close out with what everyone wants me to say? What's that? It's like, Andrew, have fun staying poor. Oh my God.

You know that's the saying on Bitcoin Twitter. No. Have fun staying poor. They literally tweet at like billionaires who are like you know bitcoin is not gonna be the winner and they're like cool man have fun staying poor like to billionaires and i'm starting to root against bitcoin yeah you guys are spiteful dude yo they're a lot of assholes just be a millionaire and chill yeah you are extra about it yeah yeah i'm not and then somebody's gonna be like fuck you and

hack it and then it all goes to shit. I hope the tweets were worth it. Yeah. You're the fucking vegans of the currency world. Just every two seconds. You know how many coins I got? How many coins do you have? 10,000?

150. I have more than you. 500. Are we talking thousands or are we talking hundreds? I have more than you, too we talking thousands are we talking hundreds i have more than you too but if it goes to zero that shit not for long bro we coming in bro but i'm gonna keep some cash just in case i could stun on you you know what i mean that's fine i got a little cash you have a little you got four percent it's nothing pennies you got pennies the way percentages work is it's all about what the denominator is i don't know what that word means.

That's the total. Ah, got you, got you. I only know common denominator. That's all I know. I know some fraction shit. I know common denominator. Don't use that word anymore after that. All right, listen, we got to get out of here.

I got to go buy some Bitcoin immediately. Thank you guys so much for listening. Thank you very much for coming on. We appreciate you, bro. Thank you for having you know we'll definitely keep in touch with you i hope that uh you know as bitcoin continues to uh do what it does maybe we'll we'll get back and you'll be our financial expert for that the flagrant financial expert so we'll definitely tap into it because he's the flagrant financial uh expert which is not what you guys should do. Well, yeah. That's why you're here.

Exactly. You're here doing it. You're telling us what we should do with our money, making us all rich or poor. Dude, if this doesn't work out, man, oh, man, dude. Yeah, it'll be a bad decision. If it doesn't work, I'm going to move back to New York, and you'll never see me again. Well, New York will be affordable, so don't worry about it. New York is fiat. That shit is.

That's the dollar, bro. Hey, you in Miami you Bitcoin now baby you Bitcoin now Miami is Bitcoin huh yo you converted

yo the mayor the mayor he's what the mayor is trying to do what is he doing he's trying to put Bitcoin into the city treasury

which I think is a good idea he wants to pay the employees in Bitcoin and he also wants to allow citizens to pay

city taxes and fees in Bitcoin too this guy is a beast bro Andrew are you paying me Bitcoin we're trying to get him on the podcast he's almost still And he also wants to allow citizens to pay city taxes and fees in Bitcoin, too. Progresive. This guy is a beast, bro. Andrew, will you pay me Bitcoin? We're trying to get him on the podcast. He's giving women like it's the 80s.

This guy, it's the whole city stuck in the past. You're right, dude. Stop. You're done. True. We're here. Yo, anytime you got de Blasio and Cuomo arguing who's more corrupt, you know shit's fucked up. They're the dollars.

They're the dollars. Yeah, they're the epitome of fiat they are fiat dude they're probably not going to be happy now that they heard this but yeah i mean it is what it is we've said way worse i mean you can just brag that andrew cuomo is watching your show yeah andrew cuomo's probably watching my show you ain't got shit you fucking rapist just kidding there's no proof there's no proof there's no it's a legend all this is a legend and also none of this is financial advice thank you guys so much for listening we love you go check out pomps uh it's a pompliano on twitter and on instagram it's like a underscore i don't

use instagram you don't do instagram you do have instagram i have one but i just don't really use it but something pops up on it i follow something on instagram they pump global pump global well i follow someone else. Someone else is posting. Have they hit you up and they're like, yo, send me one Bitcoin, I'll send you two? No, they haven't done that,

but I would definitely take that deal at this point. Dude, if a Nigerian hits me up and says, listen, I have five Bitcoin, I can give you four as long as you pay the taxes, you're getting all my money, okay?

Anything so I can get in. We love you. We appreciate you. Thank you guys so much for listening. Peace.