The Wolf Of All Streets - HUGE Bitcoin News: The Fed Just Gave BTC The Green Light!

Episode Date: January 30, 2025

I am joined by Edan Yago, CEO at BTC OS & Core Contributor to BitcoinOS, and one of my favorite guests and my co-host for Thursdays starting this week! We are talking everything crypto and specifically - Bitcoin! Edan Yago: https://x.com/EdanYago  ►► I HAVE A QUESTION FOR YOU ON THE ROUNDTABLE APP 👉https://roundtable.rtb.io/shortUrl/uWB6ium ►► 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.com/ Spotify: https://spoti.fi/30N5FDe   Apple podcast: https://apple.co/3FASB2c   #Bitcoin #Crypto #Investments 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.

We have some absolutely huge news from the Fed meeting yesterday. Jerome Powell, when asked about crypto, said that United States banks are free to participate in crypto as they see fit. Obviously, a 180-degree pivot from the policies they've had before and from Operation Chokepoint 2.0. On top of that, we have a lot of movement on strategic reserves around the world for Bitcoin and other news to dig into here. I'm not sure if we've decided yet officially to call Thursday's Bitcoin and Bullshit, but I'm going with it. So here we are, me and Yago, Yago and I, Bitcoin and Bullshit.

Let's go. What is up, everybody? I'm Scott Melker, also known as the Wolf of Wall Street. Before we get started, please subscribe to the channel and hit the like button for Bitcoin and bullshit. You'll see how many times I can say that on one show. Are we officially naming it that or did I just? I just want to make sure. Are you the Bitcoin and I'm the bullshit? No, you're obviously the Bitcoin, not the bullshit. When I made this joke to Misha, the producer, he was like, maybe we should call it bullshit on Bitcoin, right? And we can just talk about ordinals and NFTs and memes on Bitcoin.

Maybe we got to... We can still do that, right? We can have the Bullshit on Bitcoin segment in the Bitcoin and Bullshit show. That's true, man. That's so like its inception. But, you know, I think that we're going to see a lot of bullshit built on Bitcoin,

but maybe that's something to talk about later. First, I want to talk about the title here because this is, wow, what a pivot, obviously, from the Fed. Banks can serve crypto clients as long as they can manage the risk, Fed Chair Jerome Powell says. Let's just watch the video real quick for those who might have missed it. This is in the actual FOMC press conference when everybody was asking about rates. We're talking about crypto and Bitcoin and banks now. With Bitcoin really is to look at, with crypto really is to look at the banks. And, you know, we think it's, you know, banks are perfectly able to serve crypto customers as long as they understand and can manage the risks.

And it's safe and sound as many of our, a good number of our banks that we regulate and supervise do that. You know, the threshold has been a little higher for banks engaging. Okay. So there's so much to unpack here, right? I mean, to give some history, obviously we saw Silicon Valley bank collapse and then- I mean, it didn't collapse it was collapsed okay but i was gonna say then we really saw um you know signature and silver i mean those were just taken out right i mean so like signature was closed on a sunday where they were not insolvent it came to be proven and it was just because they were basically banking the entire crypto industry we know about operation chokepoint 2.0 and we know about sab 121 which was just because they were basically banking the entire crypto industry. We know about Operation Chokepoint 2.0 and we know about SAB 121, which was just reversed by the SEC.

So SAB 121, when it was reversed, basically said banks can custody Bitcoin without calling it a liability. But Jerome Powell, I don't know if he's just pretending or he's taking his cues from the new administration that he hates so much and from purse reversing this but there's a wholesale reversal completely i mean it's basically the the fed are not only backtracking they're bending the knee bending the knee to bitcoin the bending the knee to trump and his administration it's obvious this is a sea change uh but not an unexpected one the reality is that banks existed long before the federal reserve existed right banks existed long before central banks existed and the way they started was by custody in gold that was the very first thing that banks did

that's how they were invented uh and so you know for jerome powell now to sort of waltz in and say, oh, yeah, maybe banks can manage the risk. Like the only reason they wouldn't be able to manage the risk is because you put your finger on the scale. Banks have been managing that risk for 500 or 600 years at this point. Right. I mean, I guess the fear here is that they just turned it into yet another asset in their fractionally reserved banks on their path to exploding. You know, the thing about bank, look, banking, this fractional reserve thing, the big problem is that banks lend long and borrow short right so they'll they'll hold your capital for short periods of time because you you can pull out your money whenever but they've lent you money on a mortgage they're not going to get back to 30 35 years right and so that's what breaks banking uh with Bitcoin

at least for now they're actually going back to their roots so the very very first Banks as we know them started in italy in the renaissance and it was basically a bunch of merchants and they had to figure out how they're going to trade globally and so they and they also had a lot of gold which you know it's scary to to cut a lot of gold especially if you're traveling you know on your your boat to i don't know constantinople every most of the time. So there were people who set up, usually it was churches or wealthy people set up these vaults and they would hold gold for you. And then they would give you this IOU for the gold.

And that was the first fiat currency. That was the first Bitcoin-backed fiat because you could then go with this IOU and people started swapping these IOUs. And at some point, the banks figured out, actually, we could actually make more IOUs than we have gold. And so that's something we need to pay attention to. There's some really great laws that have come out of Wisconsin around full reserve banking with Bitcoin. It has been held up by the Fed. Wyoming. Wyoming, Just to be clear. That's right. Yes. Which is where Cynthia Lummis is from. And that's obviously Caitlin Long.

Exactly. It's totally Caitlin Long. Caitlin Long has done an amazing job. And supposedly, in order to protect you from making, you know, they said, no, no, no, you can't use full reserve banking. You have to use our fractional reserve bullshit. It's obvious that this is not really for consumer or user or anyone's protection outside of the banking system and the Federal Reserve System. And that is starting to crumble. And it's a great sight to see. We have this interesting sort of dichotomy where you have Bitcoin maximalists who are early cypherpunks who are raging against the machine and F the banks are now cheering for central bank adoption. We'll talk about the Czech

Republic in a minute. That was big news kind of yesterday that's ongoing today. But then you're supposed to be cheering against these banks, but maybe they'll help the number go up. On the flip side, when I posted something about that, Eric Voorhees, I think, responded and so did Mark Moss, but basically saying, listen, it's actually Bitcoin eating the world, right? This is the path. They're bending the knee. It's exactly what they said, as you did. This isn't like they were dying to get Bitcoin involved and trying to necessarily take control of it. It's that they have no other choice, in their opinion. Look, I mean, the the thing is what is this machine the machine is the institutional mechanism that corrupts the banks banks by themselves are not corrupt institutions

in fact the fastest growing economy that ever existed was scotland in the uh in the 1800s and and it was because they had a free banking system based on gold. So banks would issue pounds on the basis of the gold and silver that they had and they were disciplined because the other banks could come and claim it from them, right? If you went and deposited, you know, a Bank of Edinburgh note in the Bank of Glasgow, the Bank of Glasgow would immediately run to the Bank of Edinburgh and say, give me my gold. And so these banks were disciplined by the free market. The second fastest growing economy in all time, it was the United States under the free banking system, which ended, why did it end? Because the civil war started and the government decided that we needed to flake away the dollar so they could

fund their war. And so free banking, the free markets, freedom just generally leads to prosperity and reduces corruption. It's the sunlight that cleans away corruption. So the machine isn't banks. It's the corrupt cartel banking system that we have today, which is not a free market. So then the big question is, how do you get back to that? And the way you get back to that is by having a digital asset, which is

incorruptible, which can discipline the rest of the market. And that's why I actually think, you know, yeah, I want to see Bitcoin eat the central banks of the world. Them adopting it now is just going to be more of the turbine that spins sort of Bitcoin and leads us to, you know, this sort of inevitable future where Bitcoin is, you know, the base currency of the world, the ultimate measure of value. Right. So just as sort of an update, we'll talk about the Strategic Bitcoin Reserve here in the United States, but the Czech Republic seemingly taking the lead.

This is not a random dude proposing this, right? This is the governor of the central bank of the Czech Republic who is proposing this to be discussed today. It's such big news that actually Lummis, who's proposing in the United States, felt compelled to comment on X. If you're not first, you're last. America must take decisive action to establish a strategic Bitcoin reserve and secure its place in the 21st century. compelled to comment on X, if you're not first, you're last, America must take decisive action to establish a strategic Bitcoin reserve and secure its place in the 21st century. Then, of course, it should be noted that a non-central banker, the Czech finance minister today voiced some concern over the Bitcoin reserve proposal, right? This isn't going to

pass without pushback. There's going to be people who question it. Maybe it's justified. But this is probably outside of El Salvador, I would say the biggest news, the closest maybe we've gotten to an actual strategic Bitcoin reserve, as opposed to, you know, legal tender or countries mining, the other ways that we've seen, you know, nation states adopt. I mean, how big is this in your mind? If it goes through, and I probably think, you know, maybe a 40% chance that it goes through, if it goes through, it's a very big deal. Because it's dominoes, right? And each domino is able to collapse a bigger domino after. And so when you look at the sort of world of governments and central

banks adopting bitcoin right now you've got el salvador that's one data point you've got bhutan that's maybe another data point you've got rumors of kuwait and possibly the emirates and qatar also that's another data point but those are much less public bhutan have not been very public about what they're doing even though we know they less public. Bhutan have not been very public about what they're doing, even though we know they're doing it. Kuwait has not been very public about what they're doing, even though we know they're doing it. The second public one, plus the fact that you've got the U.S. talking about it, that starts becoming a line, a trend. And when a banker or a financier or high net worth individuals can start seeing the line, they start seeing the trend. And that means they all have to get on board. Okay, so I want to play a video because I'm actually doing a little bit of research on this on the background on ChatGPT because this is really, really interesting.

I want to pivot to Lummis and what she said, because obviously she has said, and I'll find it here, but she tweeted that the first, here it is, the first order of business, basically one of the first orders of business will be to hold public hearings on the strategic Bitcoin reserve. So she's definitely obviously trying to advance this. She's now in a position of power where she can do so. But justifiably, there's some questions as to how this would be funded and to happen. And this is an interview that she just gave that I want to discuss, because this is pretty crazy detail that I was just thinking about while we were talking. The gold standard a long time ago. My question is how much you would spend tax dollars at a time when we're talking about trying to reduce costs. How much would you spend on Bitcoin as part of this reserve? We wouldn't have to spend any new dollars. We have

reserves at our 12 federal reserve banks, including gold certificates that could be converted to current fair market value. They're held at their 1970s value on the books and then sell them into Bitcoin. That way, we wouldn't have to use any new dollars in order to establish this reserve. The United States already holds over 200,000 Bitcoin in the asset forfeiture funds. So that would be the initial source of Bitcoin. So no new money spent on this reserve. Okay, so I think we can all agree that printing money to buy Bitcoin is a bit hilarious or ironic, but I just looked up because I couldn't actually believe it when I was just thinking about it, that our gold certificates are valued in 1973. I think $40 an ounce, right? I thought that was wrong. Here you go. Gold certificates held by the U.S. Treasury are still valued at their 1973 statutory price of $42.22 per ounce,

rather than the current market price of gold. That is insane. We're at over $2,000 an ounce. Exactly. Gold held at Fort Knox and other depositories the u.s holds 261.5 million troy ounces at the outdated valuation this gold reserve is reported as 11 billion on the federal reserve's balance sheet so it's only reported at 11 billion and how much is it actually worth you have to multiply by 40 40 to 50 times So you're talking about 500 something billion dollars,

600 billion dollars. One quarter of the market cap of Bitcoin. Explain this to me. Okay. First of all, Peter Schiff must be losing his damn mind. Remember the flippening? Remember there was this idea that- That ETH was going to flip Bitcoin.

That ETH was going to flip Bitcoin. What's actually happening is that Bitcoin, we're starting to see the early phases of Bitcoin flipping in gold. Now gold is a 20 plus trillion dollar asset. Bitcoin is a $ plus trillion dollar asset. Bitcoin is a two trillion dollar asset. But what's going to happen is that the United States and other governments are going to start a rotation from gold to Bitcoin. Bitcoin is just more useful than gold. If I am the U.S. government and I want to, you know, fund the Kurds and their fight against, I don't know, Iran or whatever, I'm not going to ship

gold to them. It's even very hard to ship dollars to them, but I can get Bitcoin to them in the next 10 minutes. And so governments are going to start this rotation. If I'm Russia, I can't really use gold to get around the sanctions that are imposed by the us but i can use bitcoin and so governments are going to start rotating to bitcoin and when governments rotate to bitcoin that's a signal to everyone else to start rotating to bitcoin uh in china and in india you have the two populations that the largest uh uh holdings of privately held gold ind India in particular has a huge amount of privately held gold. And the signal is basically going to be from the governments to people to start this rotation. So I don't know if we flip in gold this, you know, over the next four years, but over the

next eight years, I think there's a pretty high likelihood that gold flip in Bitcoin. Sorry, that Bitcoin flipippens to gold. And that's going to be turning Bitcoin into the single most valuable asset in the world. I mean, it may not flip it yet in market cap, right? But do they have a few thousand years? No, I'm talking about market cap. Me too. I'm saying that might not happen immediately.

Gold's had a few thousand years head start. But in price, it has broken the all-time high in the Bitcoin to gold ratio. So, you know, there is a flippening of sorts that's already happened. I see people in the comments questioning the math here. I mean, listen, chat GPT is not always accurate, but here you go. If marked to current market value, the reserves would be worth over $500 billion. Why don't they do it? Adjusting the value would affect monetary policy, treasury accounting, and international financial agreements.

But, dude, I mean, if they marked it to $500 billion, just, you know, sell 10% and buy $50 billion worth of Bitcoin at current market value. Now, just also to put this into context, 500 billion is a huge amount of money, but the US deficit is $2 trillion a year. And only increasing. Right. So if they buy Bitcoin, and Bitcoin, as we anticipate,

goes up and exceeds the gold market market cap that 500 billion that they buy could end up being worth five trillion which is actually a pretty chunky part of the US deficit right larger than an annual deficit whereas the goals right now would be you know wouldn't even be a drop in a single year of of of debt and so when you start seeing people saying ridiculous things like the us could actually solve some of its debt problem by purchasing bitcoin yes it's an exaggeration it's not like you're going to get rid of u.s government debt which is sitting at 32 000 sorry 32 trillion dollars just by buying bitcoin because the price of bitcoin will go up as they're buying it uh but actually yes it can significantly significantly reduce the debt burden in two ways.

One, by increasing the assets held by the US government and two, and much more importantly, by disciplining the Federal Reserve, the Treasury and the US government. So bettors are not very bullish on this happening in the United States. A Bitcoin reserve taking a look at Polymarket, they've got it 16%. To be fair, that's in the first 100 days. That's a very different bet than will this happen. If you look at for the first year, I remember it was on PolyMarket at 70%. It's 53% on the Texas bill, it says here. I guess I can look at the first year. I'll look it up in a second. But it obviously should be a much higher chance if you're saying 3%.

I'm going to log into Polymarket right now and see. Because I remember it being much higher. US Bitcoin Reserve, 28% chance in the first 100 days. And then... uh 28 chance in the first 100 days and then uh yeah i can't find the actual uh first year or that it gets approved at all but uh yeah obviously it'll be higher but still the fact that we're saying 16 chance that trump will create a bitcoin reserve also has some nuance okay all right is it i'm wondering it what if uh the Senate passes it and Trump doesn't technically create the reserve, right? So just so you know, the polymarket right now is bidding a 56% chance

or close to 60% chance that there'll be a US national Bitcoin reserve in 2025. There you go. So that's better than half. We have Texas at better than half. Utah and Arizona have both actually moved forward in meaningful ways now past committee, which is the first time that we've seen that. Right. So, I mean, reserves are coming. Right. And I want to talk about sort of another topic here. Tor Demeester tweeted this. It's something that we've all kind of been talking about. But to that end, there's so much news about Bitcoin. People are able to buy these in ETFs. And we know that someone who buys a Bitcoin ETF, that money doesn't trickle down to meme coins and utility coins and Ethereum, right?

So we've had a very Bitcoin only cycle, right? You can look at it here, the decoupling of Bitcoin and crypto market caps. Normally in a cycle, if we were going to repeat the four-year cycle of crypto and not just a Bitcoin, because Bitcoin's right on track with the four-year cycle. If you had gone to $109,000 on Bitcoin and then it chilled and consolidated above 100,000, altcoins would be going absolutely bananas. And here we are seeing them at, you know, bear market cycle lows, some of them, none of them anywhere close to beating Bitcoin. Right. I mean, I even have let me let me bring this up because I this was pretty crazy. I just happened to look at it. I mean, here's the Solana versus Bitcoin chart.

Right. I mean, Solana went from seven bucks to, you know, hundreds of dollars, still basically 50% off its highs against Bitcoin in 2021. So Solana has been the darling of altcoins, the best performer of anything, of any significance, and is still getting absolutely crushed by Bitcoin. I mean, where's the altcoins? This is an argument I've been having with people.

Like actually one example is, friendly with both of us, Ron Newner. I've been having this debate with him for the last 10 years. Look, I think this was inevitable. Like, I've been anticipating this for a very long time. And the reason is that the vast majority of what we describe as crypto is what in this show we describe as right we've got bitcoin and we got and and and i think everyone needs everyone all of the people buying coins buying meme coins buying dog coins everyone knew they were playing this game and everyone felt okay with it because they knew that the gravity wheel of Bitcoin, as it went up, it

would pull everything with it. And this has driven Bitcoin maxis bananas, right? They hate it. They hate the fact that they're sort of... They don't want the rising tides to lift all boats, right? That's right. But I think the problem is that the game has been played for long enough that people are starting to realize that it's a game.

And so it was always inevitable that this magical period where if Bitcoin goes up, everything goes up regardless of its quality was going to end. And it looks like this cycle might be the cycle where it ends or at least significantly diminishes. That doesn't mean there won't be winners. It just means that you can't throw a dart at an altcoin that was hyped in 2020 and is down 90%

and hope that it's just going to magically go up. There's just not enough money in the market. I still think we have massive alt seasons coming. I just don't think they look the same. I think you have to select well. and by the way somebody was like now do xrp bitcoin in the uh chat yes i want it absolutely wrecked down 90 percent versus cycle high against bitcoin 0.002 now it's 0.00002 so i'm sorry it's not even back to like 2020. It's just breaking 23. So for all the bluster and run of even XRP here, it's still not beating Bitcoin. It has been since November,

to be fair, right? I mean, but you're talking about from the low to the high of kind of a range there. Look, I'll tell you a secret um there's actually a trick to figuring out what is going to be valuable over the next 10 years and it's not what was valuable over the last 10 years so what crypto was supposed to be was the application layer to bitcoin right bitcoin is btc the assets and it's also like the internet the value it's the ultimate ledger the ultimate settlement there and so the whole point of having smart contract chains was that you could build the application layer onto this the problem is that bitcoin didn't know how to talk to these chains and so these applications lived in their own little islands ethereum was an island not connected to

bitcoin solana is an island not connected to bitcoin. The next 10 years, the story is we're going to be actually building an application there because for a $2 trillion base of a stranded asset, an asset that you can't really do anything with, and by the end of this year, it's going to be a $4 or $5 trillion base. That's a huge market. People are going to be building decentralized services for that. And so the next 10 years is going to be the 10 years with people both systems within the bitcoin ecosystem and so we're going to see the replication of solana we're going to see the replication of ethereum and much more advanced things just built in the bitcoin ecosystem and i think if you want to be able to do you know

you and i i think we were lucky right we we were old enough and we were savvy enough to get in to bitcoin early enough to to benefit from the gains we're going from here is still i think going to go up you know another 30 40 x but it's not going to go up 100 uh or or 200 or 1000 x like we've kind of experienced but that doesn't mean that the system's built around bitcoin won't because um there's there's a huge opportunity now to build basically the economy for bitcoin and that's what's going to happen over the next 10 15 years and if you get in now uh you're going to be getting in early enough that you'll be able to once again see 100x, 1000x gains, but it's not going to be dogshit nonsense.

Right, but why will, so that's altcoins on Bitcoin, basically, right? Or some sort of assets running on Bitcoin. Why will those perform fundamentally better than hyped assets on other chains? Is it just because there'll be so much value in Bitcoin and so much interest and everything? Because basically the reason that everything else has been doing well is because all of these other

things have been implicitly connected to Bitcoin. Just look, go back to that chart you were showing me. Bitcoin goes up, everything else goes up in Lockstep. So things were tied implicitly. Yeah, I mean, the original. Yeah, the Tordemuster one.

Yeah, let me get it. Here we go. Right. So you look at it, it's like one to one. And so basically what was happening is Bitcoin had this gravity well for other cryptos because honestly people just were clueless nobody knew what crypto was what bitcoin was and so people like you know they were sent into you know people would say things like blockchain not bitcoin like nobody knew what was going on and so when bitcoin went up anything vaguely bitcoin s xrp some bank coin anything could go up denta coin went up but what makes it but what's

going to change now is the connection is going to be explicit right you're going to have systems which are going to be flooded with btc they're going to free btc to be used as a collateral asset for stable coins to be used in financial derivatives to to be used to power AI transactions. And so the next wave is those things that are explicitly instead of implicitly connected to Bitcoin. Yeah, hard not to agree. That XRP chart and the Sol charts, actually, as I look at them, they're just shocking to some degree. Not that shocking because intellectually I know it, But I mean, it's more actually more. It's just about remembering now how insane 2017 and even 2021 were.

Or is it even when all coins were shredding Bitcoin? You know, I wasn't there in 2014. So, you know, wish I was. People don't know this because of the way sort of CoinGecko and CoinMarketCap show it. Like they show Bitcoin dominance is 60%. But actually, if you take out stable coins, which really shouldn't be counted in it, and just look at Bitcoin versus, let's call it out, Bitcoin's at 75% dominance. It is the market. Everything else, everything else, that last 25% is fractured across 10,000

or 100,000 different assets. This one asset is 75. Bitcoin is the market, always has been, always will be. I had that chart somewhere, but now I can't find it. But the dominance, because I actually got to a point where I was like, why are we looking at Bitcoin dominance historically when there were no stable coins at the beginning of this chart? Of course, Bitcoin dominance was 90 something percent at the beginning. And then stable coins come in and Bitcoin dominance drops and makes lower highs, but they're printing or minting stable coins at a billion dollars a clip. You buy Bitcoin. Come on, man. That's not why they're doing it.

Anyways. So listen, I want to actually talk to you about what's happening in El Salvador at the moment as another sort of a topic here. Lawmakers in El Salvador rushed new Bitcoin reform after IMF deal. So there was a lot of bluster about this not long ago. This went to Congress on Wednesday. Of course, Congress in El Salvador does what Bukele says. So this passed, I think, unanimously. But basically, to take this IMF deal, El Salvador was forced to make some small concessions as to how they approach Bitcoin. I think most namely was that people couldn't be forced to use Chivo wallet, which was the national wallet. And then also it became voluntary to accept it by vendors as legal tender and not forced.

Honestly, I think that's semantics because I don't think there was a Bitcoin like Gestapo running around and forcing whether the minimart was accepting Bitcoin or not and sending them fine. Yeah. So the only companies that really were sort of forced because, you know, they cared enough about the formality of the law were actually large organizations and so it was like if you would go to uh the supermarket or you would go to mcdonald's then you would definitely be able to pay with bitcoin but in

small corner stores it was up to you know whoever owned the corner store to the side and so really the change is is minimal at this point like it's built into bitcoin right now is built in in in el salvador it's built into the point of sale like the pos systems and so it's not coming out so you're going to 10 years from now 15 years you'll still be able to go into a McDonald's or a supermarket and use Bitcoin to buy an Salvador. Yeah. And the more interesting nuance maybe is that they were not able to get these loans because they adopted Bitcoin. Right. And we know anyone who's ever studied the World Bank and the IMF, these are

predatory agencies that give a huge loan with terms that can never be paid back so that they can effectively take control of the country that they're giving the loan to on behalf of the United States and our corporations. If you go back to the 1970s and 80s, we also used the CIA to make sure that we supplanted the leaders that we didn't like for leaders who already were in place to accept IMF and World Bank loans. This is not FUD or conspiracy theory. This is just how we affected regime change and made sure that United States had dominance. So the real story here was that they were about to take an IMF loan and Bitcoin effectively ended up bailing them out out of a loan they were unable to get because it

continued up so much. They were able to sort of talk about issuing the bonds. And now they got to negotiate basically a tiny concession and get the money anyways. And they'll probably be the first country in history, assuming Bitcoin continues to do well over the long term, to be able to pay back an IMF loan and for it not to end up being predatory and controlling. I think there's a really important part of the story, which is the El Salvador have been under huge pressure from the World Bank, the IMF and other international organizations not to be engaged with Bitcoin. And the fact that they've managed to break through that and effectively force the IMF to accept

the fact that they have Bitcoin is going to give a lot of comfort to a lot of other countries in similar situations. And so the taboo against Bitcoin, what Bukele has done really for the world is he's broken the institutional geopolitical taboo against Bitcoin. And that is going to continue to reverberate for a long time. Yeah, I think the nuance that made El Salvador unique is that their currency is the dollar. So they were, to be fair, they were able to do this because the United States IMF and World Bank cannot attack their currency as they normally would have in a situation like this. So other countries that have their own hyperinflating

currencies, they can't really adopt Bitcoin because it would be very easy for the United States to manipulate or crash those currencies. But still, endless credit to El Salvador for doing this. I don't know if you saw this, just a random dunk, but hilarious. Senator Bob Menendez, who fought against El Salvador adopting Bitcoin, was just sentenced to 11 years in prison for taking bribes in gold and cash. And Bukele tweets, this guy said we use Bitcoin for money laundering and corruption with a crying face emoji. I can't make this stuff up. The simulation is on fire lately. That's all I can say.

You remember there was a time in the U.S. where every single senator who spoke out against homosexuality ended up with like being found in like every single one. Yeah, it's got to be the same movie. American Beauty, you know, like the guy at the end. Yeah. Yeah. Listen, there's a long pattern of politicians accusing people of the very things they're doing themselves. Right. Yeah. So what does it tell you about Elizabeth Warren? Did you see her yesterday? Okay, this is not a topic, but did you see her yesterday with RFK? Yeah.

Yeah, it didn't go so well for her. I mean, I just don't know, but she basically was screaming in defense of the pharma companies and vaccine manufacturers, telling him that he would enrich himself by suing them. I mean, it was crazy talk. I had a great, this was, I thought this was pretty funny since we're about to end soon, but I tweeted this yesterday. I mean, this is what she looked like. I said, we have the rare opportunity to observe an American carrot in its natural habitat. After I sent that, I actually thought that I should have said something about the mating ritual of the American carrot

in its natural habitat. And that would have been a funnier tweet. But we have our regrets and we sometimes miss. But she was going absolutely ballistic. Once again, very clearly protecting the huge interest that she is supposed to be aligned against the big banks, the pharma company. I mean, she is the big banks, the pharma companies. I mean,

yeah, she is the absolute worst, man. Oh, and by the way, so one more video as to the odds of the strategic Bitcoin reserve that I missed. This is David Sachs. He'll always be from the all-in podcast to me. Finally, when are we going to hear the announcement about the Bitcoin reserve from the Trump administration? Everyone's waiting for that. We got the study and the review, but the Bitcoin reserve, Texas is going to move forward. It looks like with legislation Dan Patrick announced today, that's a big priority for them in Texas. But how about the Trump administration? Well, there's also a bill in the Senate. I think Cynthia Lummis from Wyoming has introduced a bill to create a national Bitcoin reserve. President Trump has asked us to study that issue.

So we're just not ready to comment on it yet. But it's one of the things our working group is going to look at. Can't wait. David, thank you so much for joining us. We really appreciate it. Pretty noncommittal, you know, from the actual administration, which I think is fine. Well, I mean, they just want to let this play out in the Senate. Yeah, look, I think de facto you have

a sort of temporary strategic reserve already in the US because de facto they're not selling the 200,000 Bitcoin they have. They were intending to sell it and that process has stopped. So for all intents and purposes you have at least in the interim an effective Bitcoin reserve.

Yeah. And to be fair, like if we are aggressively pursuing a Bitcoin reserve, it would be really dumb to tell everybody and send the price up 50% before we can load our bags for this presentation. Right. And look at Trump. I mean, you can look at his personal account. He's loading up on BTC. Yeah. Wrapped BTC, my friend.

Wrapped BTC. And ETH. And ETH. As far as he's concerned, he's loading up on BTC. I don't know that he's making this distinction. As far as he's concerned, he's just doing crypto with the boys. like his team's doing whatever they're doing.

But I totally agree. So listen, like I just really quickly before I let you go back to sort of the building on Bitcoin conversation, you're wearing the Bitcoin OS hat. I mean, just give us the quick rundown on what you're building and the status of it, since we should just update that sort of on a weekly basis here sure so i think uh you know with bus what we've built is we've built a way to build program we call it boss do i should i call it boss do i call it boss yeah i mean that makes sense i just did my kids say these words like that bus that's bus i didn't know if it was bus or boss. There's a new word, skibity. I don't know what that one means. Well, I don't know, but maybe we should call it bus.

Yeah, your bus. All right, so bus allows us to have programmability with Bitcoin and also for the first time allows for other systems like even Ethereum to interact trustlessly with Bitcoin. So you can actually now have smart contracts written on Ethereum that execute on Bitcoin mainnet. even Ethereum, to interact trustlessly with Bitcoin. So you can actually now have smart contracts written on Ethereum that execute on Bitcoin mainnet. Now, we've been sort of building this. We demonstrated for the first time ever, like, on mainnet,

the ability to do GP proofs. There you are. You have to have it. In Nashville. In Nashville, where Trump was speaking and so we committed that before the next Bitcoin

annual Bitcoin conference we would have this on mainnet we have the testnet going out next week and so watch this space because everything you know about Bitcoin is changing completely, Bitcoin can now do everything about Bitcoin is changing completely.

Bitcoin can now do everything, and everyone is now early to Bitcoin again. So are Maxis going to love you or hate you next week? I can't keep up. It depends on how intelligent they are. Intelligent Maxis love us. The others less so. Oh, what a world, man. You know, you can only get in front of that train wreck so many times before you just opt out of it.

Look, I mean, you know, I'm a Maxis Maxi, right? I've been a Maxi before. Most of these people who now call themselves Maxis, you know, knew about Bitcoin. But I'm a Maxi not because I have an ideology where we should only have bigger in fact i would like to have many other systems and chains just as a redundancy right like we want to have a robust ecosystem so that it's not so easy to attack but broadly speaking there's just a really really simple equation every single time we've seen a technology which has a natural network effect that ends up with like one network dominating um the internet is the last obvious example of it but it's true just in general and

bitcoin is a network it's a network of capital it's a network of transactions it's um you know much easier for everyone to be on the same value standard than to be in different values than this difference between speaking a hundred different languages and speaking one and the internet is dominated by another network effect it's dominated by english right everywhere you go on the internet is english so so they're going to be like little niche use cases for maybe other sort of little networks but ultimately the platform bitcoin is going to be like little niche use cases for maybe other sort of little networks. But ultimately, the platform Bitcoin is going to be dominant. And it was always going to be.

Yeah. With one exception. It's almost like everything else has become a test net for Bitcoins. Well, well, well, the big, here's the big thing, right? The big thing is, why hasn't this happened yet? Why? I mean, it kind of has, right? Bitcoin is 75% dominant.

But why isn't it happened yet why i mean it kind of has right because 75 is in dublin but why isn't it 90 dominant like google um and the reason is that bitcoin hasn't had programmability so it's couldn't unleash the full power of its network and that is what boss is changing and that's why boss is a big deal too well no cap your skibbity, riz, buzz boss. My kids come home. My daughter's nine and my son's five. And they come home and they're blasting this song in the car. It just goes, ah, pata, patay, ah, pata, patay. And now they're just screaming this all day long, every day.

I mean, I know that we were there too. It's like, come on, man. It's a lot. I can't keep up with these kids these days. You're boss. That's the gist. By the way, where can people check. It's a lot. I can't keep up with these kids these days. You're boss. That's the gist. So where can everyone, by the way, where can people check out what's happening with Bitcoin OS?

On Twitter, it's BTC underscore OS. And on the internet, it's like Bitcoin OS dot build. I can show it so people can see it. And they should follow you. You're in the description. So you don't need to tell them. You guys look down the show over here. It's BTC underscore OS. 62.3k followers. Doing good. It's like you're building a real community. And growing.

Yeah. Awesome. I mean, it's going to get really exciting. And listen, so like to that Tour de Miester, you know, chart, like alt season dead for now, I think it comes. But alt season on Bitcoin, can you, I just, you know, are we going to like fund Bitcoin? Are we going to launch Trump on Bitcoin? Yeah.

Going full? Yeah. It's going to, if people want to be able to do it, they'll be able to do it. They will be able to do it. And more than, but I think there'll be a little bit less less it's going to be a little bit less dominant on bitcoin because once you're integrated with bitcoin you can actually do real and you don't have to do just do scams but people will still do scams people will still do nonsense and still people will still do fun which is perfectly fine um and also there's going to be a lot of speculative stuff like when you're innovating uh you know 99 out of 100 ideas are dumb um but you just want it

to be 99 out of 100 not like 999 out of a thousand so um look the the internet itself it doesn't you know we know it's generated a huge value if you look at the magnificent seven which are all internet companies they're all companies that built around the internet. They're together worth $21 trillion, right? They're worth 10 times what Bitcoin is worth. Bitcoin itself is going to be a $100 trillion asset and multiple projects building on Bitcoin. And some of them could be like things that exist like right now, like Cardano making a major effort to become a bitcoin l2 using boss right well you really that was you right that's you and charles yeah yeah yeah that that so so that maxi's on fire for a while there so my point is you're if you look around you in the world today there are projects that are going to be worth multiple trillions of

dollars they're going to be worth more than bitcoin today even though they're going to be worth more than Bitcoin today, even though they're going to be just a small fraction of Bitcoin. That's what we're looking at. We're looking at the... If the Internet of Data created 21 trillion, the Internet of Value is going to create like $210 trillion in value. I'm here for it, guys.

Give Yago a follow. Give BitcoinOS a follow. And we'll be back soon. Thank you, man, as always, for showing up and giving all of your perspective. Very skibbity. I looked up skibbity while we were talking. It's a term with ambiguous meaning originating from a viral YouTube video featuring sentient toilets. It's usage varies.

Sentient toilets it's usage verify its usage varies significant signifying anything from good to bad or weird primarily serving to perplex those over 25 well done they did well scott you're really cooking now i'm cooking it's bust boss all right guys we're out of here before i say anything else stupid thank you yago man see you soon thank you bye everyone L stupid. Thank you, Yago, man. See you soon. Thank you. Bye everyone.