source
description
the governing council decided the
following
first
we will continue to conduct net asset
purchases
under the pandemic emergency purchase
program
with a total envelope of 1
800
billion euros until at least the end of
march 22
and in any case
until the governing council judges
that the coronavirus crisis phase is
over
[Music]
good morning joe yeah the european
central bank uh doing what uh economists
thought they were gonna do they uh added
to their pandemic emergency purchase
program by 500 billion euros by my count
that takes it up to 1.85 trillion total
it is an absolutely historic week both
in terms of the speed of fed purchases
and of course the magnitude here’s a
chart that shows what’s happened since
the first of since the march last three
weeks have seen this
huge ramp up in a ways that you’ve never
seen before let’s look at what’s changed
here
since the fed last met we got the 1.9
trillion dollars in relief enacted by
congress signed by the president senate
democrats have just released the text of
their 3.5 trillion dollar budget
resolution can you characterize
everything that the fed has done this
past week as essentially flooding the
system with money yes exactly and
there’s no end to your ability to do
that there’s no end to our ability to do
that
simply flooded the system with money
yes we did that’s another way to think
about it
we did where does it come from do you
just print it
we print it digitally so we you know we
as a central bank we have the ability to
create money
digitally and we do that by buying
treasury bills or
bonds
or other government guaranteed
securities and that actually increases
the money supply
we do believe that inflation numbers in
21
which we will see
rising i can’t find any period in
history
where monetary and fiscal policy were
this out of step with the economic
circumstances not one
in six weeks
last spring
um we did more qe more more purchasing
treasuries than we did the entire time
the nine-year period from 2009 to 2018.
and if we ever get an inflationary
psychology like for instance we did when
i was uh in my 20s back in the 70s if we
ever get that again
and if you ever got retail actually
nervous
about inflation then
uh the one thing that leads inflation
which is commodity prices and one of the
it’s the it’s the easiest tautology
there is those things can literally
screen double or triple with no problem
whatsoever and valuations for both uh
interest rates and stocks are at
if you combine the two they’re they’re
so overvalued they’re at 100 year highs
i don’t know i don’t know what you do i
am so
afraid about democracy
getting the idea that you can just print
money to solve all problems
and eventually i know that will fail at
the end if you print too much you end up
in
something like
guns oil it’s mathematics the fiat
currency is now the error term that
solves the growth in the numerator which
is your total global debt versus the
denominator which is total global gdp
and we have reached a point of no return
where the numerator is going to grow
outstrip the growth of the denominator
under any plausible scenario which means
you need to print money to solve that
debt survival
[Music]
we’ve all heard of our economic cycles
and how according to most modern economy
books it is normal to have a period of
very quick growth and expansion followed
by a period of contraction and
economical crisis
as described in 1946 by arthur f burns
former counselor to the president of the
united states and wesley c mitchell
american economist
business cycles are a type of
fluctuation found in the aggregate
economic activity of nations a cycle
consists of expansions occurring at
about the same time in many economic
activities followed by similarly general
recessions this sequence of changes is
recurrent but not periodic
history though shows us that before the
20th century financial crisis arrived
because of external events
the most popular being war
there had been only one financial crisis
not attributable to external events and
this was the panic of 1825
where around 70 banks went bankrupt due
to risky investments and because of this
man gregor met gregor that had pulled
big investments into colonizing a
country that didn’t exist poise
if we look at history what turns out
what we find out is the fact that
this cycle really started about 100
years ago
and there’s an important factor to that
it’s the fact that
in the year 1914 every big nation in the
world just started
leaving the gold standard now the gold
standard is the fact that all of the
money that a central bank
has controls or produces
is only based on the amount of gold that
they hold and the price of gold
uh therefore the the amount of uh money
supply available is relative to the gold
that is held this was dropped uh and
this is what led to a lot of financing
for the first world war and even
following the second world war because
governments realize that they have this
huge
power that is
get rid of the gold standard and we can
just print money as much as we want and
in fact this happened many times in
history and was often the reason why
governments countries or civilizations
were simply
dropping the roman empire is a great
example of that from the moment we
dropped this gold standard so around the
year 1914 the uk was the first country
to do that the this is the moment where
we started seeing uh
these short-term and long-term cycles uh
particularly the short-term cycles we
are now over 100 years after leaving the
gold standard and it is a fairly
accepted fact that our economy works in
cycles based on a period of inflation
followed by a period of deflation the
fact this only started 100 years ago
should tell you that our monetary system
has flaws or while being the reason for
the unmatched growth we had as a species
in the 20th century
this inflation is due to our reliance on
debt and credit according to modern
monetary theory debt is the driver of
economic growth not productivity ray
dalio explains this well in his video
how the economic machine works over time
we learn and that accumulated knowledge
raises our living standards we call this
productivity growth
those who are inventive and hard working
raise their productivity and their
living standards faster than those who
are complacent and lazy
but that isn’t necessarily true over the
short run productivity matters most in
the long run but credit matters most in
the short run this is because
productivity growth doesn’t fluctuate
much so it’s not a big driver of
economic swings
debt is because it allows us to consume
more than we produce when we acquire it
and it forces us to consume less than we
produce when we have to pay it back and
as stated by didn’t leclair in his great
article the conclusion of the long-term
debt cycle and the rise of bitcoin
although productivity is the most
important aspect of an economic system
over the long term
not productivity but the forces of depth
are the main driving forces in volatile
economic swings
coming back to the cycles breakdano
describes the long-term and the
short-term debt cycle and how they
relate to human productivity death
swings occur in two big cycles
one takes about five to eight years and
the other takes about 75 to 100 years
while most people feel the swings they
typically don’t see them as cycles
because they see them too up close day
by day week by week this short-term debt
cycle can be observed by looking at
different metrics including the debt to
income ratios and interest rates set by
the central bank
yes the central bank essentially sets
the rules that allow our economy to
expand into unreasonable debt and later
decides when it can break down
this is the so-called booming bus cycle
the most recent ones being the global
financial crisis of 2008 and the dot-com
bubble of the year
the long-term debt cycle is made of
multiple short-term cycles
while our economy goes up and down
during each of these cycles it does
bring growth in the long run
and with each cycle our economy
continues accumulating in debt
indefinitely because we prefer borrowing
then repaying debt
there reaches a moment when there is
more debt to pay than income
historically this is when the long-term
debt cycle shifts
people stop spending and start repaying
debt and instead of growing we go down
we see recessions increased government
support devaluation of currencies social
unrest and so on
there comes a time when our economy has
sufficiently deleveraged and the economy
starts growing again following the
short-term debt cycle again
during these deleveraging events three
strategies are adopted by central banks
first lower the interest rates interest
rates are set by central banks and um
they
set the rules as to
what is the cost of borrowing money if
they lower it then it’s cheaper to
borrow money therefore people will be
more inclined to borrow this money and
this this leads to the spiral of just
wanting to borrow more and more and more
because it’s just
easier to borrow and and right now if
you look at the numbers the central bank
central banks all over the world have
been doing this for years now because we
work on a standard that is mostly based
on the us dollar what matters is uh is
what the u.s central bank does
and if they lower interest interest
rates then everyone else will also lower
their interest rates this increases the
value of assets and makes it easier to
get credits
this is the first strategy used
today these interest rates have already
dropped drastically for the main
economies and have turned negative in
many
if interest rates drop to zero then
there is no logical financial incentive
to land money
it can continue for a while
until it doesn’t
second there’s quantitative easing also
called money printing what this guy was
talking about
it allows the central bank to buy debt
securities and financial assets it
places cash in the hand of investors but
doesn’t help citizens asset prices
skyrocket usually creating inflation
which makes asset holders that tend to
be the wealthy richer and the poor
poorer as their savings lose value this
is the case today with real estate
skyrocketing globally and other raw
materials skyrocketing too
third and last is increased welfare
spending or other instruments such as
stimulus payments
if there is any kind of crisis well the
people that bought their house they’re
not going to try and do any more
financial um schemes things that would
allow them to to protect their
investment because they just don’t have
well the knowledge or the skills and
even the instruments to be able to do
that so they’re the ones that lose the
most right because investment banks they
know what’s coming they know how to deal
with it and they’ll get out of it but
this creates basically
a gap between uh the rich and the poor
and this is a lot due to money printing
because this money um gets uh
distributed into the economy but it
doesn’t get distributed into the hands
of people it gets
paid to banks it gets paid to to
investors
and it just gives them another business
and it gives them more cash to be able
to take on more positions and themselves
invest into many different assets
whether it’s stock exchange can be gold
anything the poorer people
don’t have these options and they don’t
have this money directly attributed to
them so it means that like well all of
this is happening and people are getting
rich others are getting poorer because
the savings that they have in the bank
are losing value because of these this
money printing and because of that what
governments need to do is they need to
help their citizens more because of
course no one wants a wealth gap i mean
it’s not because you’re
you know part of this elite let’s say
that that is uh
in a better position financially that um
you want the poor people to be in a bad
situation like everyone has to be
elevated in society and these people
need to be held directly
through financing
whatever form it takes and in fact if
you look at the numbers it’s since the
crisis of 1929 which was the first big
financial crisis after getting off the
gold standard that i was mentioning at
the beginning that this welfare spending
has increased so much
and now in france for example there’s
above 30 percent of gdp that goes to
welfare spending france is quite famous
for that it has one of the best medical
systems but it also goes with how you
support people that are unemployed uh
different stimulus payments help for uh
home allowances and and this kind of
thing that that is of course good for
people that need it but is only
necessary because of these actions that
are taken beforehand
more recently we know social spending
has increased due to the covet crisis so
we can only presume that the chart now
looks more like this
we are seeing another measure increasing
quickly the monetary supply
monetary supply is the total amount of
one currency that is currently available
in the economy
the more government creates new money
the more the supply increases
this money supply is directly correlated
to the devaluation of our currencies
many like to inverse these charts in
order to show this devaluation
because the more a currency is produced
the less it is scarce therefore the more
it loses value
we have all heard stories from our
elders saying money had a different
value back then
and i’ve seen archived images
illustrating this
like this mcdonald’s menu from 1972 that
had a big mac for 65 cents
the increase in money supply is the
reason why this happens
in 2020 alone the money supply has had a
big jump
this is the money that was printed in
order to finance the war against kovit
and in the u.s since the beginning of
2020 we have seen an increase of over 30
percent in the amount of us dollars in
circulation
although this isn’t felt instantly in
the economy the long-term effects will
be felt by the population that have zero
allocation in assets such as real estate
stocks and so on
the long-term consequences of this are
very wide
to illustrate take technology
by definition technology should drop in
price because it becomes more efficient
and easier to produce
yet due to inflation prices are not
going down essentially making it harder
to develop new technologies
governments use many reasons including
climate change as an excuse to print
trillions but down the road this
printing can lead to adverse results
because of the effects this new monetary
supply can have on the development of
the right technologies that could help
his transition to a more renewable
energy consuming world
but the central banks will have a
different message this is in order to
avoid the spread of panic concerning the
financial markets and their currencies
which could lead people to rush to banks
to withdraw their money
this obviously would be unsustainable
for the economy a nation in which faith
in a currency is lost will see
recessions and will take decades to
recover
instead central banks use the consumer
price index also called the cpi
the cpi is a flawed indicator yet is the
most commonly accepted indicator to
measure inflation and its effects on
prices
the cpi follows the price of a basket of
products that are consumed by people
this in essence is the way an indicator
like this one should work
but the cpi is flawed because of the way
this basket of products is selected
it is selected based on what people
choose to buy
so every year new products will be added
to this basket while others will be
removed
[Music]
but what they choose to buy depends on
the price of the product if inflation
goes up people will change their basket
of products in order to accommodate for
the price increase
this essentially makes it a new basket
of products
the cpi will not track the price of the
previous basket of products it will
track the price of the new basket of
products after the consumer decision has
been made in response to price increases
safety in ammos illustrates this
properly in the fiat standard
imagine you earn 10 a day and spend them
all on eating a delicious ribeye steak
that gives you all the nutrients you
need for the day
in this simple consumer basket of goods
the cpi is 10
now imagine one day hyperinflation
strikes the economy and the price of
your ribeye increases to 100
while your daily wage remains 10
what happens to the price of your basket
of goods
it cannot rise tenfold because you
cannot afford the hundred dollar ribeye
instead you make do with a chemical
storm that is a soy burger for ten
dollars the cpi magically shows zero
inflation
remember that governments will never
show us the true inflation numbers and
they will not attribute it to the
increase in our monetary supply because
of their management
if people actually understood this they
would never be re-elected
[Music]
we’ve talked about debt so much it is
time to look at these numbers too
we can see the sharp increase of the
global debt even in just the most recent
years
to add more context here is what this
debt represents as share of global gdp
356 percent
we have 3.5 times more debt than actual
created value
now this dead bubble could be stopped or
at least be slowed down if the central
banks were to increase interest rates
making it more expensive to borrow
giving a breather to the entire system
but today it’s likely too late the us
central bank the fed attempted this in
2018 because they believe the economy
looked to have recovered from the global
financial crisis of 2007.
10 years have now passed since the
depths of the financial crisis
a painful part of our history that cost
many americans their jobs their homes
and for some their hopes and dreams
in addition to holding interest rates
low to support the recovery we have also
taken many steps to make the financial
system safer
i’m confident that the system today is
stronger and in a far better position to
support the financial needs of
households and businesses
through good times and bad
they decide to increase these interest
rates and because of that the entire
market dropped in the space of a couple
weeks um
nasdaq and uh the s p 500 dropped over
20 percent
in just a couple weeks only because the
markets were reacting to these actions
that were done by the by the central
bank the dow is moving back towards the
lows of the day
all 30 dow stocks are now in the red and
the dao’s gains for the year paragon
a distant memory the s p 500 has fallen
into correction that’s a drop of 10
or more from recent highs all sectors
and this is key are in the red at this
moment and the nasdaq is now at a seven
months low
look at the cnn business fear and greed
index yeah i know you don’t want to see
it we got to give it to you it measures
volatility momentum and demand for safe
havens it’s pointing to extreme fear so
as soon as they started dropping the the
central bank
came publicly and said okay we’re going
to stop this
we’re going to go back to a normal
normal level of interest rates and uh
and from that moment on by the end
in 2019 they started again lowering
these interest rates and they lowered
them from all the way 2.5 percent to now
point 25
according to a lot of finance books and
what people study at university the
scenario we’re in today with negative
interest rates is impossible
right so what happens then it’s hard to
say no one no one really knows we’ll
kind of have to have to find out because
anyway central banks have no other
option the only thing they can do is
print more money
in reality the only thing that the
central banks can do is print more money
and cover for all this debt that is
never being paid back
they will work with governments to
continue increasing taxes welfare
spending and evaluating currency
this isn’t to say that these people are
ill-intended they use the tools that are
available to them and have simply
reached a point where their bags are
against the wall and they are forced to
abuse these tools
[Music]
and they’re looking for solutions to
take the entire economy out of this
situation
although these solutions are not
necessarily in the best interest of
citizens in their personal freedom
it isn’t without reason that the world
economics farms initiative is called the
great reset the name that inspired this
documentary
part of their plan is the creation of
central bank digital currencies
cbdc’s
this would allow central banks to have a
new monetary system that they can detach
from the current one allowing people to
transition into this new debt free
system and slowly deleveraging and
dropping the debt from the previous one
without adding risk to their currencies
so central bank digital currency is
coming alive
uh it’s it’s not going to happen today i
think they have a 12-month experimental
period that they want to to go through
before they actually launch for good the
status of it is we’re working hard on it
right now uh but let me tell you what it
what it is really we’re going to address
digital payments broadly so that means
stable coins it means it means crypto
assets it means a cbdc that whole
group of that of of issues and and
payment mechanisms
which we think are
really at a critical
point would you say that the corona
crisis has even
revealed more the need to have a digital
uh central bank currency or currencies
well yes i think i think corona the
corona crisis
has accelerated very much technical
change
and use of digital
innovations across the board i mean it’s
not only in financial transactions but
in e-commerce and
show business
i mean you
there are so many examples that you know
but yes it is a factor pretty much all
central banks are thinking about this
in the last few weeks of 2020 um the
people’s bank of china rolled out a
pilot program in the eastern chinese
city of suzhou they had to download an
app and have it on the phone in a macro
way you have a sense of how money flows
through the economy on a micro scale and
this is something that many in the west
would probably not be comfortable with
and many in china frankly would not be
comfortable with is that it would allow
authorities to be able to track
precisely how you or
my neighbor or the person down the
street is spending the money are they
spending their money on buying things
they shouldn’t be buying whatever
however you define that are they are
they gambling with their money are they
doing this or that with their money they
say it’s just to replace physical cash
but of course this could just be the
first step adoption will come for these
cbdc’s in fact it will be forced
adoption
the government will start supporting
citizens in need by only giving them
stimulus payments through a wallet
controlled directly by the central bank
the central bank will essentially be
able to eliminate commercial banks that
are currently the middleman between the
central bank and the citizens
for governments it will simplify many
things if they decide to change interest
rates they will be able to act on it
directly rather than wait the several
months needed for commercial banks to
implement this in their systems they
will also be able to control directly
the interest rates based on a person’s
profile or a business’s profile and will
be able to set expiry dates on people’s
money forcing them to spend and not
allowing them to save roll paul
describes this well
you see central banks
want to be able to give people money
directly direct monetization
they can’t do that right now right now
they print money it goes into the
banking system the banks hoard it
because we’re going through a credit
crunch
it’s also a way for them to kick-start
universal basic income because the
central bank can under can underpin
the poorer parts of society by giving
them money directly it doesn’t go
on the government balance sheet now
central banks now believe they’re
omnipotent that they can continue to
expand balance sheets forever mmt
seems to be the prevalent thought and
this is just an extension of this this
is kind of keynesian keynesianism gone
mad
central banks can also
change entirely the structure of
how money and monetary policy works and
fiscal policy because they can give it
to different people in different ways
so they can credit the restauranteur but
then penalize with negative interest
rates
the baby boomer saver because they want
to release their money back into the
economy
they can give students a positive
interest rates to help them save they
can change everything
this is the rise of behavioral economics
and incentive systems
so governments essentially using big
data can find who they need to stimulate
at any time and adjust accordingly they
can do it dynamically this is a a
structural
massive shift to everything we
understand about economics particularly
macroeconomics
nobody’s prepared for this none of us
know what this means
it means and it will be sold on a load
of good things
and i think there’s a lot of good things
that come from this i think it is an
elegant solution to some of our problems
but elegant solutions
in governments and central banks lead to
unintended consequences
the issue is here is to have this new
system you’re going to give up your
freedom
you are going to have every transaction
you’ve ever done and ever will do
recorded
there is no cash there is no way of
tipping the gardener
unless it goes by cash
it means that they can tax you at every
transaction level now that’s great we
could get rid of the irs and all of the
tax collection agencies because it could
be done directly
that’s good
but again you’ve lost your freedom to
transact in anonymity that cash gives
you
these are central bank digital
currencies as i said they’re not um
they’re not an invention from from
governments and central banks in fact
they’re inspired by um other digital
currencies like uh bitcoin being the
original one and other alt coins that
have been created after that um in
reality they are more similar to
other altcoins such as ethereum or or
others that simply allow the addition of
a programming that allows you to add
functionalities to them uh whereas
bitcoin is uh
is only there for these monetary
transfers bitcoin is uh
is it is a payment network right where
there’s uh um think of it as a log of
transactions a transaction that i can do
to you the bitcoin network will take
some information so my address your
address the amount of bitcoin that i’m
sending to you and with this information
it’s gonna it’s gonna create a hash it
just goes through a simple hashing
algorithm that makes a code out of this
information and this is added to this to
this log whatever amounts that happened
within these 10 minutes they basically
is considered a block and there would be
miners so computers that are connected
to the network to verify these
transactions so they’re just going to be
there ready to confirm that i do have
this bitcoin and yes i can send it to
you and that after that i no longer have
this bitcoin and you have the bitcoin so
very simple kind of work but all of
these computers are connected to the
network and they’re in competition
fighting for who confirms the block
because whoever confirms the block and
verifies these transactions will be will
be rewarded in bitcoin from from two
sources that’ll be a transaction cost
simply if i send you bitcoin then i pay
a certain fee to the network this fee
will be redistributed to miners and also
right now there is a an emission of new
bitcoin so
um
today it’s at 6.25 bitcoins per block
and if i as a miner i’m able to confirm
this block i will receive 6.25 bitcoin
it won’t happen every time because
there’s a big competition of miners 6.25
bitcoin per block every 10 minutes
that’s quite a bit especially if you
think of the price of bitcoin today
bitcoin is built in a way there is an
entire incentive
scheme that has been thought out by the
creator of bitcoin that goes all the way
to the year
2140 or so
which is that the amount of bitcoins
that are produced will be divided every
four years by two so if i’m a miner
today i make 6.25 bitcoin per block
that i confirm
four years from now after the next
halving it’ll be half that so 3.12
bitcoin this is an incentive for um
the for people to be as efficient as
possible when running their their
bitcoin mining business
and also an incentive for the price to
stay above a certain certain level
because a miner simply will either run
out of business if the price is too low
or
will decide not to sell his bitcoin
because he’s not covering for his
operating expenses
in the bitcoin protocol changes can be
made in two ways
there’s a simple way called a hard fork
where someone essentially makes a copy
of bitcoin makes changes to the protocol
and releases it to the world miners need
to connect to this new network and
choose to use this new network over the
original bitcoin network
this was done by projects such as
bitcoin cash and bitcoin satoshi vision
they were trying to solve what the
founders thought to be problems in the
bitcoin network there was a scaling
attempt to allow bitcoin to continue to
be money for the world it was called the
segwit2x agreement where segwit uh which
is if you’re deep into crypto you
already know what that is if not don’t
worry about it and the block size were
going to be uh upgraded from one
megabyte to two megabytes which would uh
if you do both those things you’re gonna
get more than double as many
transactions available on the bitcoin
network if you do uh just the two one
megabytes two big bite you double add
segwit it’s a little bit more on top of
that anyhow for for whatever reason the
segwit portion of that agreement was
activated first when that two megabyte
upgrade eventually was aborted uh i had
to look around the world and say okay
well if i want a tool that can enable
every human being on the planet to be
able to send and receive any amount of
money with any other human being on the
planet
bitcoin can’t do that it’s not going to
do that with one megabyte blocks it’s
impossible for bitcoin to do that so
there’s a whole bunch of other
cryptocurrencies out there which one do
i think is the most likely to bring the
most economic freedom to the most people
around the world in the shortest amount
of time and i looked at all the
different cryptocurrencies out there and
bitcoin cash was the one that was at the
top of my list
since their launch these projects have
failed compared to bitcoin losing value
against the first cryptocurrency because
the people that are positioned in
bitcoin didn’t want to transition
this reluctance was mostly due to one
reason
decentralization
decentralization in bitcoin is the fact
that no one controls the network
it is an open secure network controlled
and improved by every participant
in projects like bitcoin cash the number
of participants being much lower than in
bitcoin lowered the security
bitcoin satoshi vision is a great
example as it was the victim of a 51
attack in 2021. a miner’s performance is
based on the amount of computational
power they have and this is usually
referred to as hash rate or hashing
power
the mining power is distributed over
different nodes across the world which
means it is not in the hands of a single
entity at least it is not supposed to be
but what happens when the hash rate is
no longer distributed well enough what
happens if one single entity is able to
obtain more than 50 percent of the
hashing power
one possible consequence of that is what
we call a 51 attack also known as a
majority attack
a 51 attack is a potential attack on a
blockchain network where a single entity
or organization is able to control the
majority of the hash rate potentially
causing a network disruption in such a
scenario the attacker would have enough
mining power to intentionally exclude or
modify the ordering of transactions
they could also reverse transactions
they made while being in control leading
to a double spending problem
a successful majority attack could also
allow the attacker to prevent some or
all transactions from being confirmed or
to prevent miners from mining resulting
in what is known as mining monopoly the
second method to make changes is called
a soft fork
in a soft fork changes are made to the
protocol and need to be accepted by the
majority of miners to do so miners
simply decide whether they want to
upgrade to the new protocol and update
their machines
and eventually if approved by the
majority of miners at a predetermined
block number the changes will be made
official and this is how miners will
verify blocks from that point on
unlike many other protocols every change
that is made to the bitcoin network
needs to be backwards compatible
this means that if someone holds bitcoin
their bitcoin will still be valid after
the changes
other networks may be easier to change
but won’t be backwards compatible and
will often require holders of the coin
to transfer their coins to platforms
that will accept the changes before a
certain date or risk losing everything
there will be a maximum and this is
hard-coded a maximum of 21 million
bitcoin produced by the euro 2140 and
there will never be more of it
so
we can’t afford to
lose some bitcoin simply based on a
a bug fix a
functionality implementation it’s just
something that cannot work therefore
every change has to be backwards
compatible and this makes it so much
more difficult to change as opposed to
other projects that don’t care much
because they have a management team that
is there that will decide what new
vision they have for this coin and we’ll
make updates regardless of what the
community thinks because they think it’s
what’s in the best interest of the
community
the fact bitcoin is so difficult to
change is one of the reasons that make
it a great asset for the long run
buyers know what they’re buying and they
know that the asset will remain the same
no other asset in the world provides
this level of security
other cryptocurrencies have been created
but were created by a group of people
that still control the network and will
make changes to profit themselves
ethereum for example the second biggest
cryptocurrency by market cap
is still controlled by the same team
that created it
these people control the network and
promote the network in order to bring
inexperienced and non-technical
investors that don’t understand what a
lack of decentralization means for the
future of cryptocurrencies
the ethereum network aims to change the
way the protocol works these changes
will allow miners to mine only if they
have log 32 either beforehand
anyone can mine bitcoin but to mine
ethereum you will soon need to be part
of the few in the world that can afford
to buy 32 ether
this will make ethereum just as good a
currency as a fiat currency
because the decisions of a few will
impact the masses
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think of bitcoin the asset and the
network as the layer one there are other
layers that are being built around it
they’re called layer twos and also layer
threes but the
the fastest growing layer two for
bitcoin is called the lightning network
and it’s a it’s a different
payment system that
to use it basically i need to take some
of my bitcoin and you know actually put
it
onto the bit onto the lightning network
and i need to open channels if i open a
channel with you for example it means i
can transfer money to you
and the fact that i have this channel
open with you means that i have access
to the channels that you have opened
yourself
and it scales very quickly in the sense
that if we both use the lighting network
and we have a channel open between the
two of us then you have access to all of
my contacts and you can pay them and i
have access to all of yours and you can
pay that payments that i do will go
through the channels of maybe multiple
people
in order to reach uh its destination and
this allows for payments to actually be
instant
instant settlement this
doesn’t exist in finance up until now
and they’re free or almost free in most
cases
just because of how the this network is
built and
only once i would bring this money out
of the lightning network and back into
the bitcoin main network is a
transaction actually done inside of this
main network um which means that you can
do a lot more transactions much faster
and cheaper
but still having bitcoin as the
settlement layer that will confirm that
all of this happens basically
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the adverse environmental impacts
of the computing activity used to mint
many of these digital currencies in the
first place
bitcoin consumes more energy than entire
countries
and it is projected to consume as much
energy as all the data centers in the
whole world this year
one bitcoin transaction a single
purchase sale or transfer
uses the same amount of electricity as
the typical u.s household uses in more
than a month bitcoin’s main layer is
described as being very energy consuming
and it is a fact that at its highest in
may 2021 the bitcoin network was using
as much energy as what the entire
country of sweden uses
although this seems like a lot we need
to break down what this energy is where
it comes from and how this trend is
evolving including where the big miners
are transferring to in order to lower
their cost and environmental impact
first of all it is important to
understand how a minor business is set
up
these miners are businesses the more
important ones today being international
companies listed on stock exchanges
setting up a mining business requires
the purchase of hardware the asic
computers needed to tap into the bitcoin
network and start mining as well as real
estate to store all of the miners
wherever miners are around the world the
prices for these two elements will often
be similar of course better deals can be
negotiated but given the price of
electrical components and supply chain
costs this isn’t where miners will often
gain an edge over their competition what
matters most to miners is energy
the third factor and this is the most
important one
is the energy that they that they spend
in order to make their mining rigs turn
the prices vary between countries they
vary between region and they vary on the
source of energy that you choose the
cheapest source is right now always
renewable energies or nuclear but
nuclear is a bit killed by governments
so
these companies by default they have to
direct themselves
and push for the development of these
more renewable
energies because it will cost them
cheaper in the long term cheap energy
can be found from two sources
green energy and wasted energy
the energy we produce is always in
excess we never consume 100 of the
energy produced by power plants because
it would put communities at risk of
having blackouts
in the us it is estimated that five to
six percent of the energy produced is
lost when it is in transit
which is around 211 terawatt hours
this amount alone is close to double
what bitcoin was consuming at its
all-time high
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nowadays governments are pushing for the
adoption of solar and wind power and
decide to crack down on nuclear
unfortunately although on paper this
sounds positive there are adverse
effects to this
with our current technologies the energy
produced cannot be stocked
therefore the energy from solar and wind
can only be produced when it is sunny or
windy this makes it very unreliable and
requires backup power plants to be
present and active on a daily basis to
cover for this lack of energy
this really is an adverse effect because
germany for example the biggest adopter
of solar england in europe
is now back to producing the same amount
of co2 levels as it was producing 20
years ago
green policies around the world have
stopped the adoption of nuclear power
plants and have indirectly forced the
world to consume more natural gas than
it used to
natural gas comes with its own set of
problems
just like other energy sources natural
gas is produced more than it is consumed
which leads to flaring
flaring is simply the excess gas that is
extracted that needs to be burned
it is a standard and unnecessary habit
in the industry
in 2019 alone it is estimated that 150
billion cubic meters of natural gas was
flared in the world
this is the same amount as japan and
korea imported that same year
ogon
in the air producing approximately 300
million tons of co2
the same as the total annual emissions
of italy
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in order to lower their cost in energy
miners are directly connecting to these
sources of energy that until now were
inaccessible
because bitcoin miners can be placed
anywhere in the world without the need
of being close to communities
they are already tapping directly into
this energy because of the attractive
prices they can negotiate with the
producers using energy that would
otherwise be flared or would be lost due
to transit
they also have access to more distant
natural sources of energy that cannot be
used by communities
this is the case of hydro power plants
geothermal energy and even new ideas
that are being studied like getting
energy from volcanoes
the more time passes and the more these
businesses grow the more likely they
will transition to these sources of
energy in order to increase their
profits
other businesses are working on
innovating our energy production to
service miners allowing them to have
clean and cheap energy
the long-term positive effects the
adoption of bitcoin could have on our
energy production is largely
underestimated and even silenced by
governments and other mainstream medias
they may use this as an argument but it
is so little if you compare it to what
energy is actually used around the world
and
if you compare it to also to the energy
used by our traditional financial
services banks and so on they use way
more energy because each of them need to
create their own
settlement infrastructure
separately of course because they don’t
share this information with anyone
whereas bitcoin is just one place where
all of this happens right
in an uncontrolled and so on so it’s a
little bit of energy consumed for
a huge impact in terms of
financial freedom and
freedom in general actually
bitcoin was created by a person or a
group of people under the alias satoshi
nakamoto
they wrote the white paper
built the network released it and
exchanged in discussions on many forums
before one day
disappearing
a genius unknown person put together
technologies and encryption protocols in
a new way
forming the ultimate currency
and then did the most noble and
important step of all
disappeared
after creating it talking about it
publicly on forums
promoting the idea discussing it making
improvements setting up the original
miners
there’s just a point in time when the
community also started to take over it
that this this person satoshi nakamoto
just just disappeared stopped answering
on any kind of forum star stopped
writing anything and even since that
point the creation of bitcoin
never touched the bitcoin that were on
these original wallet addresses that
were created by him
so completely let it go to the community
because the whole point of it was to get
rid of the control of our current
financial and monetary system and let it
be
opened to the people so bitcoin is said
to have been created by the people for
the people because of that because it’s
controlled by a community not by a
central authority anyone can participate
in improving the network whether it is
through translations code reviews or by
building applications that add
functionality to bitcoin
but only the bitcoin core team can
actually make changes to the bitcoin
network and i think a huge part a part
of governance in the bitcoin ecosystem
is the are the uh bitcoin core
developers
now uh before i met them and i’ve had
the pleasure and the honor of of meeting
uh uh many of them uh you know that was
that was a part of this ecosystem i
didn’t understand but actually getting
to sit down and talk to them
uh i if i if i uh have a learning curve
need it certainly is on the technology
side but in in terms of talking to them
about economics economic theory
failed monetary regimes uh historically
they know economic history many of them
better than anyone i’ve ever met
uh so that gives me a great degree of
confidence that uh you know they they do
believe they they are on a noble mission
they could be paid a lot more than
they’re being paid right now if they
worked at google or or facebook or some
of these other areas but they’ve chosen
you know
this sense of purpose for a noble goal
and uh they have incredibly strong
technology backgrounds
uh so
as well as a good understanding of
economic history especially monetary
uh history
and it gives me a great deal of comfort
as i think about the governance of the
ecosystem
uh much much more so than i i think we
would find in other financial ecosystems
gold was considered always the
what is called hard money in fact the
word hard money comes from the fact that
gold is physical and hard just like
sounds money comes from the fact that
when you hit gold there’s sounds right
so it was always considered
this hardest money now bitcoin follows
the same rules but they are strictly
enforced by the protocol
which makes it a better form of gold so
not only a better form of money but a
better form of gold gold has been
controlled by governments i’ve mentioned
this at the beginning when it comes to
removing the gold standard but gold also
then and during the second world war
for example in the uk people were not
allowed to hold gold personally the same
happened in the us in in the 70s
you had to sell your gold to the
government because the government needed
to increase its reserves this has
happened historically and if any bad
situation were to happen like it has
happened in the past the same thing
would happen i mean we’re here today in
poland
whatever purchase of gold you do in
poland
your personal information has to be
given to the government saying how much
gold you owe so that they know where
they can come knock at your door if ever
they just need to increase their gold
reserves and don’t have the cash to buy
it themselves it’s so much easier to
confiscate it in the past seven years
there’s been an average of one
international monetary crisis every year
now who gains from these crises
not the working man not the investor not
the real producers of wealth
the gainers are the international money
speculators
because they thrive on crises they help
to create them
in recent weeks the speculators have
been waging an all-out war on the
american dollar
the strength of a nation’s currency is
based on the strength of that nation’s
economy
and the american economy is by far the
strongest in the world
accordingly
i have directed the secretary of the
treasury to take the action necessary to
defend the dollar against the
speculators
i have directed secretary connelly to
suspend temporarily the convertibility
of the dollar into gold or other reserve
assets
except in amounts and conditions
determined to be in the interest of
monetary stability and in the best
interest of the united states
bretton woods established an arrangement
whereby
supposedly from 1945 and the end of the
war onward
all currencies were convertible to the
dollar and the dollar to gold at that
time gold reserves were the final
mechanism for settling balance of
payments deficits but bretton woods
forestalled this process by permitting
the
sole reserve currency the main reserve
currency to
be considered as official reserves
for foreign central banks
such that they could settle all their
their deficits in dollars as opposed to
gold that’s the fundamental difference
between the classical gold standard and
what is called the gold exchange
standard which bretton woods enshrined
in law and in treaty in 1971
both britain and several other countries
decided to encash
their
huge accumulations of dollar reserves
under the bretton woods system for gold
and of course
president nixon in his own way decided
to trump them
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george says as long as we do not have
convertibility
he says the europeans can’t do all that
much to us i can’t because he says when
we had convertibility then they had a
right to lecture us about what we ought
to do but with convertibility
without convertibility that that is not
the case these countries had the right
to claim gold
to redeem their dollar reserves
it would put the united states in a
position of insolvency we just shouldn’t
get all that excited about the fact that
they worry about our budget is that your
view that’s exactly right they can’t do
one cockeyed thing and they’ll say oh
well we’ve got to maintain our
relationship we’ve asked them to hold
dollars and i said no we didn’t have the
whole dollars these hell dollars it’s
been in their interest
that’s right and i said hell with them
i’m not worried about them i’m worried
about us that’s right uh
1960s was filled with financial crises
that involved the dollar but the total
collapse came in 1971.
he issued an executive order on august
15 1971 and said i’m sorry we’re not
paying our debts
we’re certainly not paying our debts and
gold
to our friends abroad including the many
responsible members of the international
banking community who are dedicated to
stability in the flow of trade i give
this assurance
the united states has always been and
will continue to be a forward-looking
and trustworthy trading partner
in full cooperation with the
international monetary fund and those
who trade with us we will press for the
necessary reforms to set up an urgently
needed
new
international monetary system
to this day
gold can only be traded on the markets
during weekdays because some people have
decided this
with bitcoin no one can make such
decisions
individual exchanges could but would be
losing against their competition
governments have no way of knowing
whether people own any
it is the safest way to hold wealth that
is native to the internet therefore is
available always everywhere
no asset in history has ever been this
easy to acquire
allowing anyone with an internet
connection to tap into the network
anonymously and be able to access their
assets the same way
regardless of their geographic location
again
anonymously
this is scary to governments they
understand that if people step away from
fiat currencies new debt that is
necessary to generate inflation and to
devaluate currencies
won’t be created following the same
rules this puts their and their elite
friends entire status quo at risk
that’s why they’re afraid of it and
that’s why they they try to kill it in
fact in china just this year they
banned any bitcoin mining
and they closed any kind of exchange
which is uh if you think as a
totalitarian government is a great
strategy if you think of freedom for
people it is not and they’re not the
only ones this uh this year also the uk
has been uh attacking hard they’ve
banned a lot of uh bitcoin ads on uh
buses or on uh the subway just all of
these uh ads that were promoting bitcoin
have been straight off banned by the
government they have put pressure on on
commercial banks as well uh to block
transfers uh from uk citizens and uk
bank accounts to crypto exchanges so
that they cannot basically leave the
british pound and buy bitcoin instead
right so not only are they scared but
they’re actually taking action to later
implement their own uh central bank
digital currencies if you don’t have
bitcoin they give you this alternative
well you go for this alternative you
have no choice the reason they want to
ban bitcoin is because they know the
power that it has and they know that it
would take this power away from
governments
as long as governments control the money
they can make decisions that citizens
don’t agree with or don’t realize will
have an impact on them whether direct or
indirect
as long as governments control the money
they can continue their monopoly on
violence
bitcoin was created 12 years ago after
the global financial crisis as a
solution to the financial problems that
exist in our economy and to eliminate
entirely the abuse people can have on
our monetary system
seventeen amos says it
it’s important to understand that the
fiat system was not a carefully
consciously or deliberately designed
financial operating system like bitcoin
rather it evolved through a complex
process of compromise between political
constraints and expedience
bitcoin is a real asset and it is here
to stay
and its maximum cap of 21 million makes
it the scarcest asset on earth and
ultimately the most attractive asset
listen to all the money managers that
praise it
if we’re right
and uh
companies
continue diverse to diversify their cash
into something like bitcoin
and uh institutions institutional
investors start allocating
five percent of their funds we believe
that the the price
will be tenfold
of where it is today so instead of 45
000 over 500 000.
the number one thing that i would
recommend to people is have some
defensive things in there i personally
think bitcoin is a long-term hedge i
have a
certain amount of money in bitcoin it’s
a small percentage of that which i have
in gold which is a relatively small
percentage of what i have in my other
asset classes and so on and i think that
that has the merit i i like bitcoin as a
portfolio diversifier everyone always
asks me what should i do with my
portfolio my employees say i say okay
listen the only thing that i know for
certain
is i want to have five percent in gold
five percent in bitcoin
five percent in cash
five percent in commodities at this
point in time i don’t know
what i want to do
with the other 80
i do own some of it it’s gone up a lot
since i bought it obviously the tone of
this asset class is changing well i
think it’s worth considering all the uh
the alternatives to cash and all the
alternatives to some of the financial
assets
uh and so
bitcoin has um has that is a possibility
is that america we had 26 more dollars
in circulation than over the past 244
years
if you put the whole stimulus in which
it will happen that’s another 16 more
dollar formation
so you’ve got a 40 percent increase in
dollar volume that’s going to show up in
asset prices
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is
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when facts change like change i mean you
know i’m an investor
the environment’s changing and what
really
turned me was moves made by regulators
in switzerland where i’m an investor
france germany england and then canada
opened up they now have seven different
financial instruments trading on their
exchanges that holds crypto as the
underlying which is a complete reversal
of what’s occurred if you really
understand bitcoin you’ll recognize why
places like morgan stanley are coming
into the space it’s a scarce asset and
as we were talking about last time i was
on the show that supply demand imbalance
plus the impregnability of the
blockchain is going to make that asset
very attractive in a world printing
money like this it’s it’s an it’s an
amazing accomplishment to have brought
it from where that programming occurred
to where it is and take the test of time
they’ve done this unbelievable marketing
job it’s been around 13 years
and
particularly younger millennials looking
at the way i’ve always looked at gold i
like bitcoin right
bitcoin
is math
and math has been around for thousands
of years and it two plus two is going to
equal four and it will for the next two
thousand years so i like the idea of
investing in something that’s reliable
consistent
honest and a hundred percent certain
foreign
so bitcoin has appealed to me
because it’s a way for me to invest
in certainty there’s a country that uses
bitcoin there’s
regions in switzerland where you can pay
for your taxes in bitcoin there’s a
there’s just this
all of this adoption and acceptance that
is happening around the world now even
by governments which just changes the
the rules and makes it more and more
robust the community
makes it alive regardless of
political geopolitical and so on
situations
the fact that
governments
are themselves allowing the use of this
in whatever form or way
confirms it
great ideas are beautiful and have great
power
but like most beautiful things they can
also be more fragile than we think
when i was a kid we thought about the
future and we were delighted by this
possibility we couldn’t wait for it to
happen and be part of its creation
but now ask almost anyone what they
think about the future and they will say
something along the lines of nuclear war
climate catastrophe hunger pestilence
the death of life
we didn’t took care of the beautiful
idea that we create our own future that
we as humanity can do almost anything
that we imagine
our ingenuity what separates us from
other species
in el salvador we are trying to rescue
this idea and start the design of a
country for the future
using the best ingredients that makes us
who we are while using sensibility to
find the best examples of ideas from
history and around the world
i believe bitcoin could be one of these
ideas that is why next week i will send
to congress a bill that will make
bitcoin a legal tender in el salvador in
the short term this will generate jobs
and help provide financial inclusion to
thousands outside the formal economy
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lawmakers in el salvador broke into
applause after voting to approve bitcoin
as legal tender on wednesday making the
central american country the first in
the world to fully adopt the
cryptocurrency bitcoiners around the
world
the time has come
we
are ready
it is so important
this is an important step for our
country a step for technology a step
into the future to bring us financial
inclusion investment tourism innovation
and economic development to our country
bouquet has even more ambitious plans
for bitcoin saying later on wednesday
that he wanted to use renewable energy
from the country’s volcanoes to offer
bitcoin mining facilities which generate
new units of the cryptocurrency and
instructed state-owned geothermal energy
firm la heyo to come up with a plan to
make it happen the objective seems to be
making
using bitcoin as a actual medium of
payment medium of exchange much more
frictionless in the country eliminating
all capital gains taxes which is you
know of course a big impediment to
actually using this thing as a currency
uh you know potentially in service of
making uh you know bitcoin based
remittances uh cheaper and less
frictional for instance so that seems to
be sort of the main thrust of the law
what can we extrapolate then uh as far
as what the future holds beyond el
salvador here do you think we’ll see
other i guess legitimate countries like
el salvador embrace this in other larger
countries
uh we know that bitcoin cryptocurrency
stable coins have very high penetration
in places like colombia and argentina uh
you know latin america is certainly no
stranger to sovereign defaults or you
know periods of high inflation or
monetary repression so we see high
penetration there there’s certainly a
class of policy makers that see an
opportunity to gain favor by signaling
their affinity
and you know we’ll see what happens but
this is the first el salvador is the
first non-pariah state to really
legitimize and legalize bitcoin usage uh
in in sort of its intended way
so you know it seems like a big sea
change frankly banks as opposed to
governments banks are businesses they
sure have their own personal interest at
hand but they will adapt to what their
customers need and they’re adapting now
actually they realize that they need to
be able to offer some new financial
services that will be around crypto
because they’re going to be left behind
completely
because a guy like me a person like you
just won’t need their services anymore
because all of this already exists in a
completely decentralized and
uncontrolled way according to crypto
firm 90 hundreds of u.s banks are asking
for bitcoin planning to allow customers
to buy hold and sell the digital
currency through their existing accounts
as soon as this year for more details
let’s bring in cnbc.com banking reporter
hugh sun who what had to happen behind
the scenes in order for people to be
able to access bitcoin in their banks
hey hey kelly nice to be with you so
there’s a company called fis and so uh
fis is one of these uh you know back end
providers banks they actually have about
300 million in checking accounts through
their thousands of bank clients and so
they service their tech vendor that
serves a bunch of banks and then there’s
also a crypto a bitcoin custody company
called nydig and they’re one of the
companies like sort of a galaxy
so nydig has a deal with morgan stanley
for instance to offer institutional
funds to their wealthy clients so you
have some nascent uh players joining
some some established tech vendors you
know fis is a 95 billion company market
cap yeah and they basically said you
know we’re going to make it easy for
people to actually own bitcoin it is
after all a financial asset and they
want to they want they’ve done studies
that said basically if people have the
ability to own bitcoin through their
existing financial relationship through
the portal that they deal with their
other money you know their their their
uh fiat money if they’re able to do that
you’re gonna have greater adoption and
so basically what they’re gonna have is
they’re gonna as they turn this on
they’re to have access to clients the
customers of these community and
regional banks that sign on for this
they’re going to be able to go there the
bank app and actually look inside their
bank up and see
crypto all right next to their other
deposits and they’re they’re saving well
we want to be in the middle of any
movement of funds and we we don’t try to
decide what’s going to take off or not
take off and we don’t pick winners and
losers we just get ready to enable
whatever could possibly happen and i
think crypto is an exciting trend there
are there’s crypto currencies which are
kind of the digital gold we think of uh
bitcoin and there what we’re trying to
do is create utility uh which first of
all allowing making sure that our visa
cards are are used to be able to
purchase bitcoin and then when somebody
wants to convert their bitcoin to a fiat
currency uh used to use a visa
credential to you go shop at our 70
million merchants around the world so
we’re trying to create that utility so
we’re working with 35 of the big biggest
digital uh sorry the biggest crypto uh
wallets around the world making sure
that these uh various digital currencies
can be converted into a fiat currency
and that money can then be spent
from a visa card in a wallet again at
any one of our 70 million merchants
around around the world
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we’re at a point where markets are at
all-time highs
any kind of ratio is screaming that
we’re at the top of our cycle
we have companies that are that are
failing even now starting in china and
what happens is that all of this money
will have to exit the
financial market where there’s huge
amounts of money now way more money
digitally in these assets than
exists in the pockets of every single
person in the world right
so this money what tends to happen when
there’s a
you know top in the market and the
market is going to drop of course
there’s lots of value so all of these
investors they need to get their money
out right they always do that because
they don’t want to lose money their job
um and their mandate towards their
clients is to bring profits right not
losses so they’re going to get their
money out of the of the financial
markets this of course will lead to an
even sharper job but this standard
happens at every cycle
now what tends to happen though is that
most investors
at that point will
uh get into bonds which are
government obligations
and these have interest rates
that are paid by the government but
these interest rates follow the interest
rates that are set by the central bank
right so nowadays a lot of these bonds
are
negative yielding which means that if me
as an investor i want to have a certain
return per year even call it one percent
today if i buy a bond a european bond i
will not have that because it’s at a
negative interest rate so in fact it
costs me to buy this bond which until
now was secure uh
position for my money but would at least
bring at least bring me some returns now
even this fact isn’t there right so in a
scenario where the money is pulled out
uh it cannot go to bonds because it is
not logical for it to be there because
there is just this trust that is gone
from uh this value that governments use
to be able to hold in the long term with
this being gone this money where is it
gonna go right it can go into gold but
gold um we’ve seen we’ve just seen can
be controlled by government has been
controlled by governments and in the
past ten years hasn’t increased in
prices that’s the same price as 10 years
ago right so it’s sure some money will
go into gold because it’s a it’s a
typical kind of protection asset and
money will will transfer into gold um
but
there is this uh this entire new
financial market that is being built at
the same time that is led by bitcoin but
all of these other cryptocurrencies as
well bitcoin is the first time ever in
history of finance that an asset reaches
this level of valuation so quickly
on on top of that it is the technology
that is the
most quickly adopted in the world so
before that it was the internet that was
adopted
just i mean we’ve never seen anything
adopted so fast in terms of adoption of
the technological progress right now the
world of bitcoin and cryptocurrencies is
accelerating at a faster rate than the
internet which i think makes sense
because it speaks to so many people in
particularly
younger generations rather than the
people that are in power that are of
older generations and so this market of
bitcoin and cryptocurrencies and i want
to really emphasize bitcoin here because
bitcoin is the the safe one that has all
of these applications that are being
built by other cryptocurrencies uh now
also built on the bitcoin network
meaning that for all of these funds that
have serious money and long-term
objectives
buying bitcoin is one of the best trades
that they can have and given the
volatility that it has and the hedging
options that they can have represents
a lower risk for them than the
traditional assets that they’re used to
so this is why i think and i’m not the
only one in thinking so
bitcoin will be the black hole that will
swallow a big part of all of this money
that will be escaping the traditional
markets because there will just
be no more value there no other asset
like this one has ever existed before
that marries our technological progress
with our financial systems it is time
for people to have a currency that is as
open and anonymous as the internet
with bitcoin the control of money is
taken away from governments and given
back to the people
this removes huge power from governments
and their leaders that have had
countless issues with corruption abuse
of power or limiting our freedom we’ve
seen that our financial system needs a
reset and the only solution governments
have is to print trillions more
devaluating our currencies in the
process
along the way they will continue to make
people more dependent on government
because welfare spending has to increase
to cover their irresponsible money
management
this provides governments with a
snowball effect loop of inflation
leading to a poorer population leading
to more welfare spending
leading to increased government control
bitcoin is the way out of their
controlled system that favors only the
wealthy and the elite
it is also the first time due to
incentives these people have for bitcoin
to never succeed as a currency that
average people can front run them and
grow their personal wealth first before
these people that consider themselves
the elite have a chance to do so
bitcoin is slowly taking over the world
and will absorb a large amount of the
money currently stuck in our legacy
financial system
do you really want to be left behind
with them
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you