The Wolf Of All Streets - Bitcoin Will Reach $100 Million: Peoples Reserve Reveals Plan To Redefine Global Finance

Episode Date: June 21, 2025

Don’t miss your chance to be part of the Bitcoin-powered financial revolution. Sign up for the People's Reserve newsletter at Peoples Reserve.com to get the latest updates on the PRN token sale and early access to the platform launch. This is your front-row seat to the future of decentralized finance. CJ Konstantinos: https://x.com/CJKonstantinos https://www.peoplesreserve.com/ In this episode of The Wolf Of All Streets, I talk to CJ Konstantinos, the founder of People's Reserve, about how Bitcoin can power a completely new financial system. CJ explains how he's using Bitcoin as pristine collateral to create mortgages, bonds, and an entire ecosystem that empowers everyday people instead of banks. This one will blow your mind – it's not just Bitcoin finance, it's Bitcoin-powered life. ►► JOIN THE FREE WOLF DEN NEWSLETTER, DELIVERED EVERY WEEKDAY! 👉https://thewolfden.substack.com/ ►► Arch Public Unleash algorithmic trading. Discover how algorithms used by hedge-funds are now accessible to traders looking for unparalleled insights and opportunities! 👉https://archpublic.com/ ►►TRADING ALPHA READY TO TRADE LIKE THE PROS? THE BEST TRADERS IN CRYPTO ARE RELYING ON THESE INDICATORS TO MAKE TRADES. Use code '10OFF' for a 10% discount. 👉https://tradingalpha.io/?via=scottmelker Follow Scott Melker: Twitter: https://x.com/scottmelker Web: https://www.thewolfofallstreets.io Spotify: https://spoti.fi/30N5FDe Apple podcast: https://apple.co/3FASB2c #Bitcoin #Crypto #PeoplesReserve Timecodes: 0:00 Intro 2:10 Buying Home With Bitcoin 3:48 Bitcoin As Collateral 5:52 Gold vs Bitcoin 7:00 Michael Saylor’s Influence 8:35 Financial Tools For Bitcoiners 11:41 Lending At Zero Cost 13:00 Risk-Free Borrowers 15:02 Mortgages vs Liquidation 19:21 Downside Protection Model 21:46 No Liquidation Risk 24:17 Bitcoin Bond Explained 26:55 Bond Structure Benefits 29:06 Cash Flow Strategy 31:00 Real Yield From Bitcoin 32:33 Dynamic Allocation Based On Rates 35:55 $100 Million Bitcoin Vision 37:27 Power To The People 39:04 Loyalty Token For Benefits 43:22 Lending That Makes Sense 45:28 Banks Can’t Compete 50:55 Real Asset Collateralization 55:46 Token Demand During Downturns 59:52 Central Bank Of Internet Economy 1:04:26 Where To Follow & Launch Info The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. This video was created for entertainment. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor. Nothing contained in this video constitutes or shall be construed as an offering of financial instruments or as investment advice or recommendations of an investment strategy or whether or not to "Buy," "Sell," or "Hold" an investment.

All right. So we'll just start talking shit and see what happens. And this is the first time I'm actually announcing this on this on this show right now. Question is, if the interest rate goes up and somebody can't afford their monthly payments, what happens? Yeah, I love this question because wait a second, there's a trap door here. It goes deeper. You know, like myself, I walk into my 10 million dollar home. The problem is, it's only worth less than five hundred thousand dollars.

Look, the risk is so much that banks don't even keep mortgages on their books. They package them together and sell them off in residential mortgage-backed securities and commercial-backed mortgage-backed securities. Sorry, sometimes I have a bad habit of just going. That's literally a gift for a podcast. What happens when the world accepts that Bitcoin is pristine collateral and should be the zero layer of all financial transactions. The answer is that you have a Bitcoin powered life. People's Reserve is building this specifically CJ Constantino, so I had on the podcast today

to talk about all the incredible things that are coming not only for People's Reserve, but from a world powered by Bitcoin. This conversation will likely blow your mind, as every conversation does that I have with CJ. His breadth of knowledge and the depth of thought on the products that are likely to come and how to build this Bitcoin-based financial system. Absolutely astounding.

You're not going to want to miss this one. Just give it a listen. You and I have been discussing privately the idea of Bitcoin as pristine collateral for quite a while now. I'm assuming that's effectively the basis for everything you're building, right? So maybe we should start at the very beginning. Why you view Bitcoin as pristine collateral? Why you're so passionate about the asset?

Why you decided to build in this space in general? Yeah, absolutely. And I mean, it all goes back to really my personal experience in 2019. I bought a single family home for 100 Bitcoin. You know, even though we're in a bear market, my wife was pregnant and you know, the man may be the head of the house, but the woman is the neck and she can turn that head any way she wants. So I had to buy that house and I don't regret it. I mean, the memories I've had, the quality of life and standard of living upgrade

that we went through from renting an apartment to moving into our own home. I mean, it was all part of the experience of life. But looking back on it, it revealed a big problem. And that is that Bitcoiners who are positioned on the right side of the ongoing transfer of wealth, from the infinite printing world of fiat to the absolute digital scarce world of Bitcoin, we don't want to give up our Bitcoin.

You should not sell your Bitcoin, we don't want to give up our Bitcoin. You should not sell your Bitcoin. And especially right now, because we're on the precipice of a repricing event, in my opinion. Like we've seen in 71, they removed gold from backing the dollars and real estate kind of went through the same process. And Michael Saylor refers to this as land banking, right? So the monetary premium that was put into real estate was really through the monetization of the asset class,

its integration into our system. But what most people miss is that that monetary premium was accelerated and expanded through the financialization of the asset class. So it's not just monetization, it's financialization, and that's what's kept that premium so strong. Mortgages, second mortgages, home equity lines, a credit, all the financial tools built around the asset class build that monetary premium. And with Bitcoin, we've watched a term from magic internet money into digital gold, and

now at People's Reserve, we believe it's evolving into pristine collateral. But typical of Bitcoiners who have gone to the bottom of the rabbit hole and planted some more dynamite and went ahead and go deeper, we know we're ahead of the cycle about a curve or two or maybe even a full cycle and it's not just about monetization. So right now you know with the advent of corporations and institutions through Bitcoin treasury companies accumulating with the advent of corporations and institutions through Bitcoin, Treasury companies accumulating the advent of strategic Bitcoin reserves and sovereigns accumulating, it's very obvious that the asset class is being monetized as digital gold. But what comes next, just like what happened with real estate, is the

financialization of the asset class is the financial tools that you need to leverage that asset on your balance sheet to create wealth for you to compound wealth for you So at People's Reserve our entire ecosystem is designed to empower Bitcoiners to unlock the purchasing power of their savings without giving up ownership and especially right now as We're about to accelerate into a massive transfer of wealth, a massive repricing. Like myself, I walk into my $10 million home. The problem is it's only worth less than $500,000. So I don't want anybody to get into that problem

and give up generational wealth for one generation of housing. And that's one of our core products, our Bitcoin powered mortgage. But yeah, it's always built around Bitcoin as pristine collateral and and you know a lot of people ask me like why do you call it pristine collateral CJ? Well when you look back at where we came from and and and you go way back even to the free banking era where gold was that Collateral it was literally the collateral asset backing the paper liabilities circulating in the economy

Gold was not that good of a collateral it was It was okay of a collateral because it's hard. It was hard to expand the supply, right? There's cost, there's proof of work required to expand the supply, but it was still expandable, but it was limited in its expansion. But then when it came to settlement, when it came to security, bringing it across, sometimes it would cost more to settle and secure the gold

than it would to borrow against it in the interest that you are borrowing. So it was a bad collateral. And these cash equivalents, these US Treasury billed note and bonds, and other types of paper debt, became a much easier form of settlement because it was all about a centralized system where parties trusted each other within that system. So with gold you have to fly it around the world, but with a cash equivalent you can settle it in a couple of days. You could settle it real cheap and it's in a centralized system. If a mistake was made you could take it to court. But here comes along

Bitcoin and we get the best of both worlds. We upgrade the hardness of gold to absolute digital scarcity. And then we upgrade this T plus two, T plus three settlement system that we see with cash equivalents to 10 minute block times and transaction finality. So you literally get the best of both gold and US treasuries into this hybrid collateral, which qualifies it in my opinion, as a pristine collateral 24, seven, three, six, five

liquid asset that can be defaulted on within 10 minutes with a 100% recovery rate and a 10-minute return time. No other collateral in the world offers that. And that's what makes Bitcoin a pristine collateral. And that's why we call our products Bitcoin-powered finance, because without Bitcoin, it's just regular finance. The first time I really heard this articulated well was my first conversation with Michael Saylor, which was right after MicroStrategy first bought Bitcoin in 2020. It must have been a week

after I reached out, hey man, would you really do a podcast? And he was like, yeah, of course, he was on the road show. So, you know, if you asked, you got the opportunity. And he basically broke that down for me. I think that was one of the aha moments for him actually and why he Decided to go all in on Bitcoin in the first place. He said I've got you know, four yachts and houses everywhere You know talking about all his billions of dollars in assets He said good luck coming and getting my yacht that I can get Alone against it's like it could be floating across the world. Okay, come get it. Yeah It's like it could be floating across the world. Okay, come get it.

Yeah, it's, it's, I, you know, I love Michael Saylor. I think my split adjusted price on micro strategy is $27. They're doing good. Been with him for a while and no doubt he is the OG who opened up the Pandora's box of financial engineering. And here at People's Reserve, we're building on top of his shoulders. I think his financial engineering has been a focus for corporations and institutions. And that's because he does have that publicly traded company where he can issue these different

types of financial tools that can empower the corporations and institutions. And at People's Reserve, you know, we're not publicly traded. We are working in the background and trying to secure a reverse merger with a special purpose acquisition company. We have some pretty exciting plans for that. But in the meantime, like Sailor, we pull liquidity from the decentralized finance internet economy rather than the US capital markets. And what he's been able to do is fantastic. And we built on top of his shoulders with financial engineering for the everyday person,

financial engineering for retail. And we have that in our Bitcoin powered mortgage product. We have it in our Bitcoin bond, which is a cashflow vehicle for Bitcoiners who understand you need to have some type of cashflow in your portfolio or else you're gonna have to give up ownership of your Bitcoin. So every single product and service we offer

is really about empowering the everyday user of Bitcoin. And I like to compare it like this, because a lot of people ask, they're like, CJ, we heard about your loyalty token. And this is pretty exciting, but we'd like to learn more. And I have to answer back, and I tell them, well, I'm glad to hear that, because this is, again, Michael Saylor opening up the Pandora box.

Michael Saylor, he published the digital asset framework. And of course, within that framework, Bitcoin is a digital commodity. It's backed by digital power, and it's in a class of its own. That's what makes it the reserve asset of the digital economy. But he also talked about tokenized securities, which would be just like stocks, but token, and not closed down on a holiday. 24-7 trading, perfectly liquid.

And also digital commodities. I think he calls it a digital ABT where we're talking about gold and oil and other types of commodities because we envision a world where Everything is tokenized But at the same time it's priced in sats and settled in Bitcoin and that creates a true free market world where the yield Curve itself is actually not stated or anchored but is discovered in true price discovery based on the supply of money demand for loans and the perception of counterparty risk. And of course with bitcoin as pristine collateral you eliminate risk and that's

one of our missions here at People's Reserve. We don't want to just help you unlock the purchasing power of your savings without giving up ownership. We want to attempt to establish a true free market yield curve. And in order to do that, we need to raise liquidity with zero cost of capital. Now Michael Saylor has demonstrated how to do this perfectly with all of his offerings that he has in the marketplace. He's borrowing at almost $0, 0% and he's getting access to tons of liquidity. Now imagine if Michael Saylor went ahead and said, you know what, I'm going to raise this hundred million dollars through

this convertible or through this ATM or through many of the different methods he has. And instead of taking the full hundred million and buying Bitcoin, I'm going to take 20 million and put it on my balance sheet in Bitcoin. But then I'm going to take 80 million and I'm going to lend it back to Bitcoiners. I'm going to take that money and I'm going to lend it back to Bitcoiners. I'm going to take that money and I'm going to provide it as liquidity. And this is where the company name comes from. It is literally an ecosystem that allows us

to source liquidity to create a reserve of money to be deployed for we the people. So it's the people's reserve. So we pull money from DeFi, we pull money from US capital markets, and yes, we put Bitcoin on our balance sheet, but we also take the vast majority of that liquidity and lend it back to Bitcoiners at zero cost of capital. In what world? Some Bitcoiners think that you're going to be able to go on your knees to the cantillionaires and beg them for a

credit line, and then they're going to give you a credit line at 6, 7, 8 percent. And then you have to take that and flip it to your customer. So you're arbitraging the difference between your borrow rate and your customer's borrow rate in order to create profit. Well, you're not going to create a free market yield curve in a world where you're going back and begging for a credit line from the traditional stated anchored yield curve. You need zero cost of capital in order to redefine the risk free rate and the risk free

borrower. And that's one of the things I'm most excited about here at People's Reserve. People buy the token number one to get loyalty benefits. You're getting calculable economic benefits. If you have a Bitcoin powered mortgage, you can save thousands of dollars a month on your mortgage payment by getting a three and a half percent interest rate Instead of borrowing at the industry standard of around 10 to 13 percent depending on who you're working with So that savings of almost 10 percent of interest lowers your monthly payment

Lowers your out-of-pocket costs and saves you depending on how much money you borrow Hundreds of thousands of dollars over the life of the loan. That's a calculable economic benefit That's why you want to hold the loyalty token. But the second reason that you buy the loyalty token is because you're providing liquidity to the People's Reserve Fund. And it's the People's Reserve Fund that is sourcing that liquidity to redefine you, the responsible saver of Bitcoin, as the risk-free borrower. To give you, the responsible saver of Bitcoin access to the risk free rate in the marketplace. There's no way to make this happen if you have to go back to the traditional yield curve

to source your liquidity. So building on top of Michael Saylor's digital asset framework and his strategy of using financial engineering to source liquidity from US capital markets and eventually, I believe, even from the internet economy, the digital economy that he's laid out that framework for, we're going to see a movement into a new world, into an internet economy world where the world of finance is focused on a true free market price curve rather than the stated and anchored price curve that they're stuck in right now. It's more profitable in a true free market.

And I'm not sure if you saw this news, Scott, but just the other day, I believe Bybit announced that BlackRock's tokenized treasury is actually going to be able to be used as collateral. Yep. So this is accelerating faster than anybody anticipated, and it's all based on economic incentive. You have even JP Morgan is coming out with their own stablecoin. Why they have to they have to they cannot hold the cash equivalent on their balance sheet and earn four and a half percent when you can hold that cash equivalent on your balance sheet at four and a half percent, create a liability in the form of a stable

coin, provide liquidity to the internet economy and rake in another four and a half percent You will fall behind your business model will fail when everybody else is doing this black rock is leading the way Other big firms are picking it up. There's no doubt in my mind We are moving into a new Error of finance and we need to get out and ahead of that to help define that yield curve to make sure Bitcoiners who can post pristine collateral to help define that yield curve, to make sure Bitcoiners who can post pristine collateral, they are the ones who are the risk-free borrowers.

No longer having the power of the printer makes you risk-free. Having the pristine collateral makes you risk-free. So Bitcoin-backed loans themselves have been popular for quite a while. I wouldn't say they've reached mainstream adoption by any sort, but there's, you know, tens of billions of dollars have been taken

in Bitcoin- Bitcoin back loans. You've expanded wildly on what's available using your Bitcoin. So there's a number of companies focusing on that. There's never a couple of these focusing on the yield products like earning a yield, but I've never heard anybody talk about the mortgages and the bit bonds and all of these. Maybe I don't know if we should go through them one by one because it's fascinating what you're doing. I can say that you and I have talked at length about the mortgage product.

We've actually looked at one of my properties. I've committed to actually using it because I find it so fascinating, but much better to have it described in your words than mine. Yeah, absolutely. And there's a couple of inherent problems with Bitcoin lending. And one of the biggest risks moving into the future for Bitcoiners is liquidation because there's a natural volatility in the marketplace. Now, we know that volatility is life and it benefits us, right? The five-year compounding annual growth rate on Bitcoin is over 60 percent. The 10-year category is over 80 percent. We welcome volatility. That's how we grow our wealth. That's getting the destructive part of the volatility cycle is what TrapFi is missing.

When something goes wrong, it's too big to fail, and then you end up with a bunch of zombies. When something's too big to fail in Bitcoin, it actually fails. And that mismanagement and over leverage gets washed out and we build from a stronger foundation. This is how Bitcoin keeps putting in higher lows and higher lows because the failures actually get washed out and punished. Whereas TrabFi has all of these zombies pulling it down. So that volatility is life.

But with that volatility becomes the largest risk for all Bitcoiners, which is liquidation. And don't think for one second, this is why at People's Reserve, we say choose your counterparty wisely, because a lot of these entities are going to use their ability to issue fiat denominated debt to issue circulating credit That's only backed by proof of promise to put you in a position where you're empowered for a short time But when that volatility kicks in liquidation risk kicks in and that's why at People's Reserve We're super excited not to just offer another Bitcoin lending product But to innovate and to redefine how these products should work to secure The borrower and the lender and to dive into a little bit of how this works like okay CJ. How do you how do you mitigate?

Liquidation risk. What do you mean? One thing we've done is that we've integrated variable interest rates So variable interest rates for those of you who like free market economics, interest rates are the price of money. And prices are discovered through supply and demand. So it's the supply of money and the demand for loans. But also when it comes to an interest rate, it's counterparty risk. This is why you get assigned a credit score. The higher your credit score, the lower risk, the lower the rate you can get. The lower your credit score, the higher risk, the higher the rate you have to pay.

So risk is a pricing element within interest rate price discovery. And when you post collateral with people's reserve, here's another exciting thing. It's a one to one ratio. So if you're going to buy a $500,000 home, you only have to post $500,000 of Bitcoin to initiate the purchase of the home with every other lender because they don't treat Bitcoin as pristine collateral. They treat it as a risk on tech stock that you're borrowing against on margin, you're going to be in that 50 to 70% LTV range.

And if you want to sleep well at night, you want to get closer to the 50 level. You and I have had our fair share of sleepless nights using these products, which is, again, we run into the problem, we create the solution. How do you know that? How do you know what that solution or how do you create that solution without knowing the problem so our vast experience in this marketplace using these products really is what helped developed and innovate a product that secures I don't want you to be able to buy a home and then not sleep at night I want you to sleep a sleep nice in your brand new home and when we do that number, we empower you by lowering by cross collateralizing real estate with Bitcoin, we lower that threshold. So you don't need to post a million or 1.5 million of Bitcoin to borrow 500,000 to sleep well at night. You only need to post a 500,000 and the cross collateralization of real estate helps secure the loan as well. That's how

we do that. Now, what if the price goes down? Am I going to get liquidated? No, you're not. Your interest rate is going to go up. So the way that we've done this is as the interest rate goes down and the loan becomes under collateralized for every 10% price point that Bitcoin goes down, 50 basis points or half of 1% will be added to your interest rate. And then on the way back up, while the loan is under collateralized, you'll get back those 50 basis points for every 10%. Then when the loan becomes over collateralized, you'll get back those 50 basis points for every 10%. Then when the loan becomes over collateralized, you're actually gonna get 20 basis points

for every 10% increase up to 200% over collateralization. So let me run through like the COVID example, because I think this is super powerful. If you were lending from any other person in the Bitcoin industry, or any other company in the Bitcoin industry during COVID. Price is 10,000, you put up $100,000 of Bitcoin, you're borrowing 50 grand, price goes down to 6,000,

you're getting margin calls. You're gonna have to post more Bitcoin or understand that you're at risk of getting completely liquidated, losing your Bitcoin savings. A couple minutes later, and I know you know this better than anybody, I heard one of your shows the other day where you know this better than anybody, I heard one

of your shows the other day where you set a bid at 4,000, you went to sleep, you woke back up, boom, it was right there. And I didn't even know. It went six, four to six, and I was asleep when it went to four, and I didn't even know I'd bought. Yeah, it was incredible. So that movement overnight, and your case works well because you set bids. But I would have been liquidated.

Yeah, for the person who was borrowing, you were liquidated. You woke up and your Bitcoin savings was gone. Well, that's unacceptable because even a month or two later, we were right back up at 10,000. And you just lost the most important asset on your balance sheet. At People's Reserve, we wouldn't want to offer a product that could let that happen because things happen all the time in Bitcoin. It's the most volatile asset in the world. So what would happen if you were with Bitcoin,

posting Bitcoin as pristine collateral with people's reserve through the COVID crash? Well, you go from 10,000 down to 5,000. That's a 50% decline in price. Now your loan is under collateralized. For each 10%, you get 50 basis points. So your interest rate would go up by 2.5 percentage points. And then for a month or two two you would pay a higher monthly payment based on that new interest rate But then boom bitcoins right back up to 10,000 and now you're right back to where you were when you initiated the loan Right back to where you were at your original interest rate And then as Bitcoin went on to set new all-time highs for every 10% it goes up You're knocking 20 basis points off your interest rate You could have knocked four percentage points off at the maximum over collateralization rate. So at People's Reserve, you wouldn't have been liquidated,

you would have paid a couple months of your monthly payment a little bit higher of a rate than originally anticipated. But when Bitcoin returned to where it was, your rate back to where you were, and then as Bitcoin repriced and set new all-time highs, your monthly mortgage payment is actually going down. So this is what we're super excited about at People's Reserve. Remove the liquidation risk, allow our customers to sleep well at night, introduce the variable interest rate model and integrate that into our contract so that both the lender and the borrower are put into a power position. It's so brilliant.

Question is, if the interest rate goes up and somebody can't afford their monthly payments, what happens? Yes, fantastic question. Now, this is another element that we're really excited about. We understand that things happen all the time, not just Bitcoin volatility, but also life volatility. So what happens if you lose your job? What happens if you what happens if that payment is just a little bit too expensive for your cash flows, even though you have your job? Well, we allow you to pay 0 to 100% of your monthly payment directly from your collateral. And since your collateral is being posted at one to one, you can make those payments for a significant amount of time before you even get the 10% threshold that forces your interest rate to go up.

So if you go through hard times, that payment is a little bit higher because of Bitcoin volatility. You can always take from your collateral and subsidize your cash flow with that value from your collateral to make it through. Because the only way to get liquidated with the People's Reserve Bitcoin Power Mortgage is to not make payment. So the last thing you want to do is not make payment. You do not want to default and not make payment. So take what cash flow you have. That's the case with any of those. That's not unique to you. Yeah, exactly.

Turns out you actually have to pay your debts, as it turns out. Yeah, oh yeah. There's no, yeah, so people are like, oh, so I actually have to pay? Yeah, I mean, there's no such thing as free money. The innovation here is that we're mitigating liquidation risk.

We're introducing adjustable interest rates, and we're allowing you to take from your collateral and pay from your collateral to get through those life volatility moments. And with're allowing you to take from your collateral and pay from your collateral to get through those life volatility moments. And with all of those mechanisms coming together, we believe at People's Reserve, we really truly are gonna empower responsible savers of Bitcoin

to unlock the purchasing power of their savings without giving up ownership of the most valuable asset on your balance sheet. It's incredible. Now the Bitcoin back bond is another one I know that you're very excited about as I'm looking through things here. Oh yeah. So, so you know, I bought my house. We've heard a lot about bit bonds lately. So yeah, it's, it's funny. I think, uh, actually me and Peter Dunworth were the first to really

actually talk about that idea. Um, and it just, it snowballed from there But again, the R&D was paid by yours truly because I bought my Bitcoin I bought my Bitcoin cheap did well spent a hundred Bitcoin on my house. But now I'm in my house I'm saying well, wait a second. I got to pay taxes. I got to pay I got to pay for maintenance I got to pay for my family. I got I got to sell more Bitcoin. This is horrible. Like this is No, I I literally and this is a funny story. This is how I met Charlie Shrem. During that 2019 bear market, I was like, I'm not selling any more Bitcoin.

I don't care what anybody said. I will go back to work before I sell more Bitcoin. So I literally went back and waited tables at this restaurant called Green Flash, which is like a nice fish restaurant right on the water. And one day, Charlie Shrem comes sailing up in his yacht called Satoshi. And I'm looking like, is that Charlie Shrem? And it ended up being Charlie.

So I got to hang out with Charlie Shrem at the Green Flash restaurant. And I ended up becoming pretty good friends with him. Was recently on his podcast talking about People's Reserve as well. But it's just so funny because at that time, you know, I showed Charlie my portfolio and he goes, what the hell are you doing here? And I said, you know what I'm doing here. I'm not going to sell any more of these bitcoins. You and I know exactly where this is going.

And it ended up going even beyond what we were anticipating at a much faster and quicker rate. And to see this rate and pace of adoption accelerate is insane. But the but the moral of the story here was I went back to work to create cash flow. I needed cash flow. I wasn't going to keep selling my Bitcoin to live my life, especially knowing where the market was, where we are on the S curve of adoption at the very, very bottom. Right.

Once we get to the top of the S curve of adoption, then I think it makes more sense to spend your Bitcoin because I think the value of Bitcoin will be relative to the value of the global economy. It will have sucked all monetary premium into it through that adoption. And then the purchasing power of Bitcoin will be based on whether the global economy is expanding or contracting. So you can, you know, there'll be a little bit of wiggle room there in your purchasing power.

But right now, before global adoption, it's just absolutely insane to spend the asset. So I said to myself, okay, there needs to be a way to create cashflow. And for a Bitcoiner, the last thing you want to do is like sell a large chunk of your Bitcoin to buy Treasuries to get risk free cash flow, because you lose exposure to Bitcoin. So we created a principal protected note that we

call a Bitcoin bond. And we call it a Bitcoin bond because it's the price performance of Bitcoin that actually creates the yield on the bond itself. So it's a five year principal protected note. And how it works is it's based on the interest rate. So we will package together either US Treasury debt or US state municipality debt. Some municipalities with even a higher credit rating than the federal government. And right now, let's call that rate four and a half percent for the for this example. So we would buy a five year US Treasury note paying four and a half percent.

And because it's at four and a half percent, it's the percentage that the note pays that actually dictates the allocation within the instrument itself. So at four and a half percent, it's an 80-20 split. So if you invest a million dollars into a Bitcoin bond, 80 percent of that million dollars or 800,000 goes into the US Treasury debt or municipality paying four and a half percent. And this is really important because what that means is over the five years of that principal protected note, when you take the interest repayments that you receive quarterly and you add those together with the principal balance that you receive back at maturation, the $800,000,

that comes out to a million dollars. And that's where the principal protection comes. So you can invest a million dollars in the Bitcoin bond and understand that you have exposure to Bitcoin, but at the end of those five years, your million dollars is getting paid back to you. Now, what you can buy with those million dollars, nobody knows, but you're gonna get paid back those million dollars

secured by the full faith and credit of the US government or a US state backed by taxes and tolls and other things like that. So the million dollars is principle protected. What's left over? The performance of the $200,000 of Bitcoin. So if Bitcoin continues to do what it does and it has a five year CAGR of 60%, people get surprised by this math, but a 60% CAGR over five years is 10x.

That $200,000 of Bitcoin that we're worth two million. That means the Bitcoin bond would mature with a $3 million value. $3 million. So over the course of time, you received your cash flows from the interest disbursements from the paid by the government or paid by the state. And then you maintained exposure to Bitcoin. So upon maturation you're able to roll into a higher bond if you want. So if you sell a million dollars of Bitcoin you

buy a million dollars of treasury you get your interest and then at the end you get your million dollars back. But if you do that same methodology with a Bitcoin bond you don't just get your you get your interest but you don't just get a million dollars back you get three million dollars back. So every five years, it's like you can increase your quality of life or your standard of living. It's like you're getting a huge raise at work. So you could take that $2 million in Bitcoin and stack if you want to maintain your quality of life

and standard of living. Or you can say, you know what? I'm going to roll 2 million into the next Bitcoin bond because I want to double my quality of life or standard of living. And you're getting 40 grand a year or whatever from the interest on the treasuries, which is your kind of rolling income for having.

Right, so as a person who's saying, well, how do I use this instrument? I come to People's Reserve, I'm looking to use the Bitcoin bond, how do I use it? The first thing is to understand what your expenses are, because that's your cashflow need. And you're going to calculate how much cashflow you need per month,

and then you're going to make sure that those quarterly payments Equate to the amount of cash flow that you need So whatever that number is you calculate that number you buy that exact amount of the Bitcoin bond Now you have the cash flow you need you don't have to go to the fiat farm of slavery Debt slavery, whatever you want to call it the fiat farms, right? You don't have to clock in and clock out anymore. You're now allowing the Bitcoin bond to produce the cash flow for you. But at the same time, unlike any other cash flow vehicle in the world,

it maintains exposure to Bitcoin and you get 100% of that upside. This is not some kind of a bit bond where you split the upside with people's reserve 50-50. No, that's ludicrous. We're on the lowest end of the price curve. No issuer can beat our price on this bond because there's no profit share. So you get the full cash equivalent cash flow and then you get the full exposure to Bitcoin.

What it means is you have 100% downside protection. You invest a million dollars, you're going to have a million dollars upon maturation. Even if Bitcoin goes to zero, you're gonna have a million dollars upon maturation even if Bitcoin goes to zero You'll still have your million dollars. Now. What's amazing is if Bitcoin under performs, let's say it's the price stays the same You still get more than a million more percent. It's a four percent APY if Bitcoin keeps its 60% CAGR It's 40% APY if we get the Michael Saylor long term 30 percent CAGR thesis, it's 20 percent APY. That means you're using a cash flow

vehicle that is outpacing the real rate of inflation. In other words, it is the lowest risk, highest reward cash flow vehicle in the world that pays a real positive rate of return. And that's produced by Bitcoin. Will you offer like 30, 70, 40, 60

or is it all structured 80, 20? Well, the structure of the principal protected note depends exactly on the interest rate of the issuing debt. Of course. So if the US Treasury lowers rates, then it might go to 90, 10. So we'll go out the curve to a municipality. But again, some of these municipalities have higher credit ratings, and it's not just backed by promise and a printer, it's actually backed by taxes and tolls and there's other types of municipal debt that are very secure. And whatever that rate is, that is going to adjust.

So if it's like if we go from four and a half to four, you might go to like 85 and 15 instead of 80, 20. If you go from four and a half to five, you can go 75, 25. So it is, depending on what that interest rate on that debt is, that is the direct of that has a direct effect on the allocation of the principal protected note. And of course, we want to maximize exposure to Bitcoin because Bitcoin is the best performing asset in the world. So we want to give it as much power and as much pool as it can in the product to give you 100% upside. So you have downside protection risk with 100% upside.

You can't beat that price even with some of the stuff they're talking about in the industry now. Like the Bitbomb for instance, will guarantee you four and a half and then anything above four and a half, you know, will split that 50-50 with you. No, actually how about I just get my cash flow that I need from People's Reserve and then I get 100% upside. Thank you. Come again. So I think that's and that that describes our philosophy here at People's Reserve.

We like to say that we're relationship maximalists instead of profit maximalists. And some people are like they don't just get it because they're still fiat minded. But in the long run on a Bitcoin standard, when my kids are doing business with your kids, that means that my business is still around because we cared about you. But in the long run on a Bitcoin standard when my kids are doing business with your kids That means that my business is still around because we cared about you We treat our loyal customers like royalty and we believe that relationship is more important than the profit But in the long run you actually profit more because I'm not looking at you as just a number on the screen I'm not saying oh Scott came to People's Reserve. I've earned the above average

Lifetime return on our customer, so whatever. If he goes away, we already made money from him, bring in the new guy so I can bring in the lifetime earnings from him. No, I think a lifetime relationship is more important. And you know, we've talked about the Bitcoin powered mortgages, we talked about the Bitcoin bonds,

but we are a one stop shop for your most important assets, life, Bitcoin, and real estate. So we have a swap engine We have a debit card. We have we have products coming down the line We've have we have a health share program coming down the line powered by Bitcoin bonds So you're gonna get all the same benefits you would get in your typical health program except at a fraction of the cost because we're taking those premiums paid and putting them into Bitcoin bonds and Getting the yield on Bitcoin bonds

to support the system rather than a cash equivalent spitting out four and a half percent, we get a Bitcoin bond spitting 40%. We're also working with legislators to try to establish a home share program. So not just health share, but also home share, especially here in Florida and in places where insurances are stepping away,

you don't even have a chance to get insurance. Well, a home share program powered by Bitcoin bonds gives you a lower price with full coverage and the insurer ourselves is more secure because we're getting a real positive rate of return. Our return is outpacing the growth in prices of the assets that we're insuring. It seems that you're very focused on downside protection as well. Because in my mind, I think, well, we have these products right now, or I could just go take a million dollars worth of Bitcoin, or buy it, let's say at a million bucks and you want to buy the bond. So I buy a million dollars in Bitcoin instead.

And then I just go out into the market and I take a loan against it. I basically get 45%, 50% out of it and buy more Bitcoin and ride the wave. That's what a lot of people would do. Or they take that as their cashflow, but they get it immediately upfront. But I guess the real difference is you don't have the downside protection there, you have the liquidation risk.

So I guess it's about your risk profile and how you would want to approach this. Or maybe there's a blend of both, you know, where you know that depending, if you have a lot more Bitcoin, you know you could add as collateral, maybe that risk doesn't really bother you. Yeah, absolutely.

And we think that, you know, as we progress, more and more Bitcoiners who are using the technology as a savings technology, obviously, as Bitcoin does what it was designed to do as engineered money and accrues value and properly stores value through space and time, our customer base is going to continue to grow. Naturally. But the people who are few and far between and have experienced massive amount of gains are a small percentage of the marketplace. I think in the long term, you know, a dollar could be worth one sat.

I mean, that might sound crazy, but it's not that far fetched when we reprice the world of finance. It's not just about real world assets of a thousand trillion. it's about all of the derivative products you see in finance too, which brings it to the multi-thousand. So a hundred million dollar Bitcoin? I think in the long, long term, at the end of the adoption phase, at the top of the S curve of adoption,

which we won't even witness in our lifetime, and our kids and grandkids will be living during that time, yeah, absolutely. I do think that that's to where we're going. I think all monetary premium will come out of all other assets that act as collateral now but are not pristine and that monetary premium will go into Bitcoin. And what we want to make sure is that as that wealth is distributed across the world, we do it in a way where we're empowering the small guy.

I mean, there's just not a focus on the small guy anymore. And that's why you see in my background, we put we the people rate underserve. So it says people's reserve, but underserve, it says we the people, because our mission is to serve we the people. The cantillionaires are not going to serve us. The Trap-5 bros are not going to serve us.

They've built systems that extract value from us, not deliver value to us. Only TradFi bros are not going to serve us. They've built systems that extract value from us, not deliver value to us. Only we the people can empower we the people. And again, this goes back to the People's Reserve loyalty token. How do we empower ourselves? By not going begging back to the cantillionaires for liquidity so I can arbitrage my borrow rate with your borrow rate, but that we have a new system that allows us to raise liquidity, to fund the people's reserve, to empower Bitcoiners to become those risk-free borrowers with the cheapest cost of capital in the world. That mission is more important to establish a true free market internet economy.

That is more important than to make money. I believe that with all of my heart. Now, that doesn't mean we're not going to make money. That doesn't mean I'm in this business to lose money. It just means that I think in the long run, People's Reserve makes more money caring about the people and serving the people rather than setting up a business model that extracts value. Have you gotten any pushback from Bitcoiners and Maxis

about having a loyalty token? Because honestly now it seems pretty much par for the course. Right? I mean, no, no, I don't think it's the same kind of controversy that it once would have been but like you're a hardcore Bitcoiner there was probably even a time in your mind where you were You know dismissive of loyalty tokens or all coins or anything else, right? So yeah, it's a fundamental part of the ecosystem here So maybe you should explain it and how the Bitcoin maximalist will be comfortable with this. Yeah, absolutely. I mean, everybody who's been following me for the past years, they know I am a hardcore Bitcoin maxi. And what does that mean? Like, I'm the hardest

core Bitcoin maxi that there is. And if you don't believe it- Yeah, you literally just said that you held a lot of Bitcoin, unknown amount that even impressed Charlie Sherman went to wait tables. Yeah, exactly. So- I think you like, I think you're, I think you've got your membership card is, uh, been punched here. Yeah. Okay. Perfect. Yeah.

So, and, and the thing is that's, and this is what Bitcoin Maxi means. Bitcoin is money and nothing else can compete with it. Bitcoin is the wheel. You don't need to reinvent the wheel, but what does a wheel do if you don't attach it to a cart? You can't be productive. if you don't attach it to a cart? You can't be productive. If you don't attach it to a car, you can't travel. If you don't attach it to a plane, you can't fly.

We need to build up tools around the wheel. And Bitcoin is the wheel. Nothing can compete with the wheel. There's no need to reinvent the wheel. It is what it is. And we first, we have the first form of money ever for humanity. We have it and we don't need to compete with it. We need to compliment it.

We need to attach the wheel to a cart so we can now become productive. And that's what People's Reserve Financial Tools and ecosystem is all about. It's the cart that attaches to the Bitcoin wheel. Without the Bitcoin wheel, there's no need for the People's Reserve at all. So it's one and the same.

And at Bitcoin Day Tampa this past weekend, There's no need for the people's reserve at all. So it's one and the same. And at Bitcoin Day Tampa this past weekend, I gave the keynote where I introduced the token and people like Charlie Schramm, Mike Jarmouz, Chris Sullivan, I mean, Paul Tarantino, big hardcore Bitcoin maxis. And afterwards I came up to them and I explained what I just explained to you. Why is, you know, the first question is, well, explain the token to me more. I mean, we know you're a maxi.

It's a trigger word, yeah, yeah. Explain the token. It's about loyalty and liquidity. You and I have worked in this industry for a while. It really bugs me that certain exchanges have made hundreds of thousands of dollars off of me over the last decade. And the guy who signed up last week pays the same fees that I pay.

Like that's just, there's no, I get no benefit from my loyalty and I feel like the relationship doesn't matter. Well, so that's the first thing. It's about loyalty. We don't want you to have to come to people's reserve and work with us for a decade before we start treating you right. We want you to work. If you want to demonstrate your loyalty and work with us for a decade before we start treating you right. We want you to work.

If you want to demonstrate your loyalty and establish your loyalty level through our token, you can do that on day one by buying the token. And that's how you know you're going to be getting all of the best APRs, the best APYs. You're going to get the lowest fees in the entire industry. So you're going to be you are literally going to become the royalty. You will become the new Cantillionaire because you're getting access to the cheapest cost of capital and the cheapest products and services in the world in order to manage your assets. We're an asset management platform where you can manage life, Bitcoin and real estate. And you're going to be able to do it with the cheapest costs at People's Reserve when you demonstrate loyalty.

It's it's just really important. But number two, again, it's liquidity. We cannot go to the traditional marketplace and beg for a credit line warehouse and then turn around and then we can't borrow at 7% and then lend to you at 3.5%. We go out of business. We need a zero cost of capital. So it is literally the Michael Saylor strategy. I want zero cost of capital and I want to stack Bitcoin. Okay, that's fantastic I love it. It's working really well. We'll do it too when we get exposure to US capital markets But right now we don't have exposure to US capital markets we have exposure to the decentralized finance internet economy and What we have is a loyalty token that allows us to raise liquidity so people buy the token to establish loyalty, but they also buy the token to produce liquidity.

And what do we do with that liquidity? Does CJK and the People's Reserve team go off and buy an island? No, because I've already would have done that with my Bitcoin if that's what I want to do. I'm here for the future of finance. I believe in a world where the world is priced in sats and settled on Bitcoin. And in order to do that, we cannot be begging for liquidity from an anchor rate or a stated rate found on the traditional yield curve. We need to establish a true free market internet economy yield curve with this fund. And we're willing to say, hey, you know what?

Bitcoin is pristine collateral. So the other guys will come out and say, yeah, Bitcoin's pristine collateral. You can go ahead and borrow from us for 13% But the guy who comes in and says hey, I promise I'll work the next 30 years of my life You know the economy is gonna stay good all the variables all the risk Look, the risk is so much that banks don't even keep mortgages on their books They package them together and sell them off in residential mortgage-backed securities and commercial-backed mortgage-backed securities They don't want to hold it on their book.

At People's Reserve, these are non-standardized mortgages. These are non-qualified mortgages. That means we have to keep them on our book. We don't just write these mortgages and pack them, package them together and sell them off to some people who are looking for high risk cash flow. No, we consider these extremely low risk because they're secured by real estate and the most pristine form of collateral in the world. And we keep them on our book and we consider the Bitcoiner the risk-free borrower.

So when we lend to you at three and a half percent. And they are risk-free because you have the collateral. So right. It's exactly the risk is like almost it's negative risk. Like it breaks their model, which is why they can't do it. It breaks their model. So they'll lend to the guy who comes up and makes a promise for 30 years at 6.5% or 7.5%,

but they won't lend to the secured over collateralized Bitcoiner for the same rate. And in fact, they're gonna double or triple the rate. Yeah. It doesn't make sense. It goes against common sense. And that's because these lenders don't understand Bitcoin They don't value it as pristine collateral

They look at it as a risk on tech stock and there and their eons away because they're also looking at it Not through advancing humanity and advancing Finance finally letting finance evolve after hundreds of years in this experiment to the next stage of finance They want to keep it how it is because they have control letting finance evolve after hundreds of years in this experiment to the next stage of finance, they want to keep it how it is because they have control. So I mean, to that end, like we know that I won't say exactly the same products, but similar products are going to come from legacy financial institutions. I'm not saying necessarily Bitcoin backed loans or mortgages or the bonds, but certainly

lending and yield and all of the classic things that we'll see. Do you think that they'll be able to compete? Do you think that there will be a lot of people that go to a JP Morgan or State Street or Bank of New York Mellon just because they have the name and try these same things? Or do you think that they'll find ways to be equally predatory with Bitcoin as collateral as they are with everything else? Yeah, I mean, I think they're lending

because they want to accumulate Bitcoin. So, lending is actually one of the best ways to acquire Bitcoin because when you acquire it- Because you liquidate people. Yeah, because you're acquiring it at a liquidation price. So for them, I think it's just like, it's like that saying, you don't change Bitcoin, Bitcoin changes you. Well, business doesn't change Bitcoin, Bitcoin changes you.

Well business doesn't change Bitcoin, Bitcoin changes business. And government doesn't change Bitcoin, Bitcoin changes government. They haven't learned that yet. They don't understand that yet. So I think in the short term, I don't have any concerns about competition because any type of competition that spins up is going to be a profit maximalist mindset. It's going to be a V2 of what happened last time with BlockFi and Celsius and all of that stuff. There's going to be rehypothecation schemes going on in the background. That's something

I didn't get to talk about. At People's Reserve, we contractually obligate ourselves to not rehypothecate your collateral. If there is any form of rehypothecation that takes place, we are in breach of contract. And as a US regulated company, you can take us to court and hold us liable for that. So we don't just say, oh, no rehypothecation. No, we actually contractually obligate ourselves to ensure and protect you that there is no rehypothecation.

Yeah, you spent 100 Bitcoin on a house, I lost 50 Bitcoin on Voyager Plus. Yeah, there you go. And that's unacceptable. But that's the games that they're gonna play. Oh, you hand us the collateral, we'll take this collateral and post it as collateral with a trusted third party.

And then you know what happens when it all breaks down? You're not gonna get your Bitcoin back, you're gonna get the dollar denominated value of your Bitcoin at the liquidation price. So they're still going to play these games. And when something goes wrong, just like at FTX, some people thought, oh man, you know, I'm going to get back a good portion of my Bitcoin.

So I might, I might end up okay, right? Bitcoin was at 16,000, went back up to 30 and then 40. And they're like, I might be okay. Yeah. Cash value at the liquidation price of 16,000. So you got absolutely decimated, got absolutely crushed. So when something goes wrong, they're gonna print it and they're gonna settle with you in dollars. People's reserve, there's nothing gonna go wrong

because we don't wanna use your Bitcoin. You're already using it to secure the loan and that's good enough for us. And we don't need to rehypothecate to increase our yields from three and a half percent to four and a half percent because we look at it as a loss leader. What do I mean by that? Yeah, we write you the loan at three and a half percent when we could lend it to the government at four and a half percent. But the first thing we get is negative risk because you're over collateralized. The second thing we get is you're going to also

use our other products and services. People people's reserve, if we're empowering you and we're a one-stop shop for everything you need for life, Bitcoin and real estate, why are you going to use the other people? You're not. And when you're using our products and services, the fees and revenues that are generated there equate to being, they make up for far more

than the hundred basis points that we can make on that loan. So it's about empowering the user and creating an ecosystem with a positive feedback wheel just like Michael Saller's done that rewards both the company and the customer. And you have to pick and choose your spots. I think our potential competitors don't think like that. They come from the fiat mindset of profit maximalism. They want to extract as much value as they possibly can.

And they want to keep the rates as high as they can because that's where the profit comes from. You would, if you could be a fly on the wall in some of these high net worth individuals and family offices I've been into, the first thing I do, I sit down and they're like, son, I've been in the markets longer than you've been alive. Let's make this meeting quick, right?

So that's how they start off. And then I'm like, okay, well, he already knows we're here to talk about Bitcoin, but I'm not here to talk about your investment portfolio. I'm here to talk about your lending portfolio. Who are you lending your money to? The government? Yeah, because it's risk free. Municipalities?

Yeah, because I get tax free cash flow. So okay, you have a you have a little bit of choice in there, but why not lend to some Bitcoiners? You have diversification in your investment portfolio. It's time to introduce some diversification into your lending portfolio. And then they're like, okay, I'll listen to a little bit. What else you got for me? I got something for you right here. When you lend your money to the US government or to municipality, you get a piece of paper. That piece of paper is constantly diluted because we live in a fiscal dominant error.

That means the government has to run a deficit. We have $38 trillion in debt. We have another $220 trillion of unfunded liabilities. They have to create more of those cash equivalents that they're handing to you as the form of collateral. That means you're holding your principle in a form of collateral that is being diluted over the life of the loan. There's an ongoing soft default on the collateral that you're holding to secure your loan.

That doesn't sound too healthy, does it? Okay, now what happens when you provide liquidity into our private real estate equity fund or credit fund or debt fund that people's reserve. I'll tell you what happens when you write a loan to a Bitcoiner. Your principal is actually secured and held in number one real estate and Bitcoin. So if something does go wrong, and again, we've taken all the steps to make sure nothing goes wrong. But if something does go wrong, you default into the assets that you want.

Because if the government defaults, whether it be a soft default or a hard default, as soon as you get that back, you're going and buying a real world asset. The problem is, is you're buying a smaller house. You're buying less goods and services with that maturation value. Over here, if something goes wrong, the principle is secured by assets that are inflation proof. The principle is secured by assets that you want to accumulate. So you know what? Introduce some diversification into your lending portfolio.

Yes, lend to the government. Yes, lend to the municipalities, but also lend to over-collateralized Bitcoiners, who you will soon learn truly are the risk-free borrowers in the marketplace. Yeah, I don't think the banks are going to be able to compete. Well, their mindset, you know, and after I say that, some of them, you can see they just had their first orange bill. It goes off and they're like, that's it. Send me the PPM, send me everything I need to know. I'm in. And other people are like, let me ask you this. Nice to meet you. Please leave my office.

Yeah. Well, if 10% get it, that'd be a tremendous success rate. But how much would the loyalty token volatility impact the company or the consumer? Because we know that once you go a step beyond Bitcoin, there's going to be more volatility in any other token that's created anywhere in crypto, regardless of whether it's a loyalty token, a utility token, whatever it is. So how does that impact the user that's using this loyalty token to participate in the ecosystem or to provide liquidity? Yeah, I love this question because as a Bitcoin maxi, I had to really understand the tokenomics so strong because I wouldn't be able to sleep at night if I sold a token to somebody that

could go to zero. Like I've been rug pulled. I've had my fair share of scams, especially in the DeFi industry. And I don't need money. Thankfully, I'm blessed. Bitcoin has been my savings technology for 12 years. I'm not in this to make money, I'm in this to create a new system.

So when you ask that question, it really pulls out the passion in me because, and this is the first time I'm actually announcing this on this show right now. We have what's called a rental vault and we believe we created a token omic structure That for the first time in in the entire industry when the price goes down There's actually going to be buying demand and not just speculative buying demand because the price went down you think it's gonna go back That's not by not by the dip. Yeah. So what is the rental ball? Okay.

Let me explain a scenario. Let's say that you have a mortgage and you establish your loyalty at the diamond level, which requires a 10% threshold. So what do I mean by that? The USD value of your PRN tokens must be 10% of your loan value. So if you have a $500,000 loan, you need $50,000 of PRM. But what that does is it gets you a much lower interest rate. So if you max over collateralized,

you're getting 3.5% interest rate. That's the lowest interest rate that you can attain. I'm doing this by the way, people. I've talked to CJ, he sold me in one of those meetings before, I'm pretending I don't know things for the sake of this, but when it launches, we those meetings before. I'm pretending I don't know things for the sake of this, but when it launches, we're doing this, I'm doing this. So the difference between Diamond and Basic

is at Basic, your interest rate starts at 10.5%. And if you max over collateralize, you can get down to 6.5%. So those three percentage points of interest save you massive amount on your monthly payment and then save you hundreds of thousands of dollars of interest. So what happens if the PRN price goes down and now your $50,000 is only worth $45,000? Well you need to buy more PRN in order to

maintain your level. But what if you don't have money to buy more? What if you can't afford to buy five or six thousand at that time? No problem. We have what we call the rental vault. You can rent PRN tokens over a daily period. So as a renter, you can rent for one day or seven days. You can choose your time period. So if you believe that the price is going to bounce quickly, you just rent for one day in order to maintain your... But what backs this? What supports this ecosystem?

The monetary benefit. Your calculable economic benefit, the invisible hand that drives the marketplace is profit. So if you drop from diamond to gold, and your monthly interest rate payment goes from just for an example here just goes from like 2000 to 3000 per month, that's an extra $1,000 that you're going to have to pay on your interest rate. That's a lot of money. Well, doesn't it make sense that you go to the rental vault and maybe you pay $250 to

rent $5,000 of tokens and then you rent that period so that you maintain your lower rate and then when the price rebounds, you no longer have to rent. So what happens is renters of PRN tokens who want to maintain their calculable economic benefit are going to pay to rent those tokens during the downturns. So during the downturns in the rental vault, the APY of people who provide PRN tokens to the rental vault is going to skyrocket because people who are using our products and services are going to come and rent.

So they're going to buy a hell of a lot more tokens to take advantage of the higher APY. So let's say Bitcoin drops down 10% and PRN drops down 15 or 20% right because it's always at a multiple of that. A beta, yeah high beta. So Bitcoin drops down 10, PRN drops down 20, you're going to have a bunch of renters coming into the vault. Well, the more renters who come into the vault to get through this temporary downswing, the higher the APY on the vault, the higher the APY on the vault, the more incentivized the market is to buy PRN tokens and provide them to the vault in order to earn the higher APY from

all the renters. So for the first time in this industry, I believe there is a digital utility token that when the price goes down, there is actually going to be a massive source of demand on the token in order to buy up those tokens to provide to renters. And we've not seen this dynamic anywhere else. So that is just one element of our tokenomics that make the,

but we also have absolute digital scarcity as a Bitcoin maxi, how could you, a shit coin is a coin that has unlimited supply that can be expanded by an issuer for any reason. It's digital fiat. That's not this loyalty token. There's 1 billion tokens and they'll never be any more than that. We do not have the ability to just issue more of them. It has absolute digital scarcity. So as the demand for these tokens goes up, the price has to go up as the utility for these tokens goes up, the price has to go up. As the utility for these tokens increases, as people use our products and services, the

price has to go up on the token. Now, is the price going to come down? Of course it is because it's free market price discovery. But during those moments, we have the rental vault element, which creates a natural buying pressure, a natural floor to the token itself because the free market can buy those tokens, provide it as liquidity to the renters, earn the interest, and then when Bitcoin rebounds there's no locking period, there's no staking or locking period at all. You can provide liquidity and remove liquidity at will and you can liquidate that whenever you want. So I

believe PRN is actually gonna become a safe haven during downturns because you'll get the initial, you will get the initial price drop. But upon that initial price drop, you'll have an influx of renters. And with the influx of renters, you'll have the yield opportunity, a paid yield opportunity.

So you'll buy more PRN, creating a floor to provide those renters, those tokens they need to keep their calculable economic benefits. They're gonna be paying $250 to rent $5,000 of PRN tokens so that their interest payment doesn't go from 2000 to 3000. And that's a really exciting thing that we have at People's Reserve that I've not seen anywhere else in this industry.

I know we're up against the clock here. But what's the... I can't believe that we just took through an hour on that, by the way. But all of this said, I like to take the 30,000 foot view and zoom out. So what is this all? And I know this might be a long answer, but what is this entire ecosystem, people's reserve specifically, but I think more generally around Bitcoin look like in 10 years if you're able to build everything you want, and it's all successful and all adopted and Bitcoin continues on the trajectory that we believe it will.

Yeah. People's Reserve will be a central bank of the internet economy. That is what I'm building towards. So when we look at the yield curve, the very front end of the yield curve is called the federal funds rate. This is an overnight banking rate. But when you come into the internet economy and you try to say, you know, what's going to be that rate?

What is going to be the equivalent of the federal funds rate in the true free market yield curve? Yeah, we have the middle of the curve with Bitcoin powered mortgages and Bitcoin bonds. We have the long end of the curve with the longer end bonds. So what formulates the front end of the curve? The inter-bank lending rate between companies like People's Reserve and MicroStrategy who have become the central banks of the internet economy.

So the rate that we lend to each other will actually be the equivalent rate of today's federal funds rate in the internet economy. So when we do our reverse merger and we get access to US capital markets and we're becoming a Bitcoin treasury company that stacks Bitcoin but then sources liquidity from US capital markets and DeFi and then empowers the People's Reserve ecosystem or the People's Reserve Fund, which is then the funds that are lent out to the risk-free borrowers, establishing the risk-free rate in the marketplace, that

is the long term of what's happening here. A true free market internet economy where no one country can control or out compete because it's an aggregate. Where no one country can state or anchor a rate because rates are discovered through true free market price discovery of supply of the money, demand for loans, and perception of counterparty risk. And for People's Reserve, our long-term goal is to be a Bitcoin treasury company that pays dividends. Because I hold my, I'm very happy with MicroStrategy. I am not going to sell my MicroStrategy. It's already in trust for the great, great, great grandkid, because I believe

Michael Saylor will make MicroStrategy into a central bank of the internet economy. Well, People's Reserve will become a central bank of the internet economy. Well, People's Reserve will become a central bank of the internet economy, but when we have publicly traded equity, it's important to me that that equity pays a dividend. So all of the fees and revenues that are generated within our ecosystem, all that funnels back up to our main umbrella corporation, People's Reserve Inc. Because People's Reserve Inc. is our umbrella corp. We have many subsidiaries to offer our products and services.

But all the fees and revenues generated by those subsidiaries filter back up to People's Reserve Inc. and then get distributed as a dividend. So when you hold People's Reserve Equity in the long run, when you hold People's Reserve Equity, it's not just about a long term bet on a future central bank of the internet economy, it's also about dividend cash flow. And we were, my mission is to create a Bitcoin treasury company that pays absolutely ridiculous dividend cash flows, because I hold my Bitcoin for the long term. I hold my Bitcoin for the extremely,

extremely long term. In the, in the short term, I want exposure to the long term central bank of the internet economy, but I want cashflow dividends. And I think my mission is to create the first Bitcoin treasury company that actually has a positive ecosystem built in its infrastructure, creating those revenues and fees

that is financial engineering for the everyday person, and then pulling those fees back into the Bitcoin treasury company structure and distribute them as dividends. I don't believe in companies that sit on hundreds of billions of dollars of cash. Why do you own a company? You own a company to make money with it. So if the company is making money, they should be maximizing their dividend distributions so that you can make money with them. And with this mindset, I want to completely rewrite and rewire the thought process of a publicly traded company and how it distributes dividends. And I think with the People's Reserve ecosystem tied into decentralized finance and People's Reserve, Inc. tied into US capital markets, we can pull both of those markets together and create a product that the world's never seen before.

Every time I talk to you, it just strikes me how you've thought of everything. I'm sure you haven't, but like you have so many layers of products that are coming and ideas based on the core ideas that it's just absolutely incredible, man. Thank you. Well, that's that's Bitcoin for you, right? You get to the bottom of the rabbit hole and you realize, wait a second, there's a trap door here. It goes deeper.

And that's how it's been for people's reserve. We are Bitcoin Maxis building for Bitcoin maxis. And when you leverage Bitcoin in your ecosystem, the potential is infinite. So one of the hardest things for us to do is just concentrate and launch our products and get it done. But when people start to see our roadmap, their jaw is going to drop to the floor because we're not just talking about Bitcoin powered finance, we're talking about Bitcoin powered life. We're talking about Bitcoin powered everything, because Bitcoin is the layer zero

money and money is 50% of every transaction. So Bitcoin powered transactions is Bitcoin powering 50% of everything. And that's the future we're building for. Absolutely brilliant. So talk to me about where people can check this out, how they can participate, when all these products will be launching, and then more importantly, where they can follow you for more updates as we move forward. Absolutely. So the best thing to do right now is go to peoplesreserve.com and sign up for our newsletter because that's where you're going to stay up to date with us on all the fresh announcements.

And the big exciting news is that the PRN loyalty token sale will be taking place on July 4th. So make sure you get into that newsletter. Bookmark our token sale will be taking place on July 4th. So make sure you get into that newsletter, bookmark our token sale page. One day for the people's reserve, come on man. It is, be the people day baby. Independence day baby. It is time to take back financial independence and freedom

and we couldn't be more excited to be at the tip of the spear of that fight and we're excited to fight it with you and to get back our financial freedom and independence. So July 4th token sale and then shortly after that, this is another exciting thing. Most of the time when you have a token sale, you end up waiting a very long time to find out how you can use those tokens. No, no, no, no. We're not raising, we're not selling these tokens so that we can build something. We've already built it. We're selling you the tokens so that you can use them and be empowered.

That's what we're excited for. But that's and then of course, you can follow me on X at CJ Constantinos and People's Reserve at People's Reserve. Absolutely amazing. Thank you so much for your time. Obviously, we'll be tracking it. I've already talked about you guys in my newsletter and stuff. You know that I'm very excited to be participating. Now I want to have a private conversation about the reverse merger, so that's coming. I find that very, very interesting and that's something we had not discussed before this podcast.

So thank you, man, for your time. I can't wait. We'll be screaming from the mountaintops, obviously on July 4th, and I can't wait to actually use this and get it going. Thank you so much, Scott, and I look forward to talking again soon. Thank you so much, Scott. I look forward to talking again soon. Thank you.