AI Is Breaking The System & What It Means For Bitcoin

[0:01] Yo, welcome back to another episode of
[0:05] the Jack Mallers show. I am your host
[0:08] Jack and you are listening to yet
[0:10] another edition of mailbag Mondays. All
[0:14] signal, no noise, and no ads. Every
[0:17] Monday, 6:00 p.m. Eastern, 5:00 p.m.
[0:19] Central, 3:00 p.m. Pacific. Let's get
[0:23] this show timestamped.
[0:25] Ladies and gentlemen,
[0:26] I'm talking to you live at a Bitcoin
[0:29] price of 60 I can't even do it without
[0:31] laughing. At a Bitcoin price of $64,760.
[0:36] That puts Bitcoin's market cap at 1.29
[0:39] trillion US dollars. Our all-time high
[0:43] remains at $126,160.
[0:47] We're about 50% down from that all-time
[0:50] high, 48.7%
[0:52] to be exact.
[0:54] We made that all-time high on October
[0:55] 6th, 2025. It's been 140
[1:01] days.
[1:02] For those of you that keep track of the
[1:04] Bitcoin block height,
[1:06] timestamp your life in Bitcoin block
[1:08] time.
[1:10] The last Bitcoin block mined before I
[1:12] hit record was Bitcoin block height
[1:14] 938,033.
[1:18] The road to 1 million, not only in
[1:20] price, but in blocks, baby. Stay humble
[1:24] and stack sats. Stay humble and mine
[1:26] blocks. All right, ladies and gentlemen,
[1:29] there's so much going on in the world.
[1:31] It's difficult for me to understand and
[1:34] to pick a topic. What do the people want
[1:37] from the boy?
[1:39] What do you got what type of truth needs
[1:41] to bear from my lips?
[1:45] Uh and I decided on this.
[1:47] AI is breaking the system and what it
[1:50] means for Bitcoin. I could have gone in
[1:51] a million different directions. Gold
[1:53] continues to perform well. It was Gold
[1:56] was actually the US's second largest
[1:58] export of 2025. So, I could have gone in
[2:02] that direction, but
[2:04] we've talked enough about gold. We know
[2:06] who's buying it and we know why they're
[2:08] buying it. We know why gold is
[2:09] performing and everything else isn't,
[2:12] including Bitcoin. We know that.
[2:14] What's becoming more of the story is
[2:17] what we on the show have been warning
[2:20] that Bitcoin has been signaling. We've
[2:22] talked about Bitcoin as a smoke alarm,
[2:24] as a truth-teller, as something that
[2:27] leads markets.
[2:28] And we're like, man, Bitcoin's starting
[2:30] to look like shit's going to hit the
[2:32] fan. Bitcoin is starting to look like
[2:34] there's a credit crisis looming.
[2:37] And all of a sudden, guys, it's
[2:39] happening. Now,
[2:41] you know, I'm known to be emotional.
[2:45] I love a good time. I love cursing and
[2:47] screaming.
[2:48] So, I'm not telling you to hit your
[2:50] bunker and buy up toilet paper like
[2:52] we're in COVID,
[2:53] but we might not be far off.
[2:56] >> [laughter]
[2:57] >> Let's get into it. So, the title of the
[2:58] show, AI is breaking the system and what
[3:01] it means for Bitcoin. Chapter 1, the
[3:04] white-collar wipeout. AI is not coming
[3:06] for jobs, it's already here taking your
[3:09] jobs. So, in large part, this has was
[3:13] inspired by a real-life conversation I
[3:15] was having. So,
[3:16] um
[3:17] to not dox people in my personal life,
[3:21] I was having a conversation with someone
[3:23] in my life and they're an accountant,
[3:25] okay? And
[3:27] they're not necessarily in Bitcoin. I
[3:29] just know them for other reasons.
[3:32] And we're at a lunch
[3:34] and we're talking and AI comes up and
[3:36] I'm like, man, AI I use AI all the time.
[3:39] It's hard for me to imagine a life
[3:40] before AI.
[3:42] Like this show, for example, I'm using
[3:45] AI. Like I got my whole setup I've I've
[3:47] already talked to you guys about it.
[3:49] I've got my developer setup. I'm
[3:50] honestly in the middle of vibe coding
[3:53] all sorts like a to-do list and ideas
[3:56] app. Like it's it's easier for me to
[3:58] talk to an intelligent agent to
[4:02] perform how I need to perform.
[4:05] And I go, how are you guys using AI in
[4:07] accounting?
[4:09] And he goes, using AI? I don't use AI.
[4:12] My jaw hit the floor.
[4:14] I said, what?
[4:15] Aren't you an accountant? You don't use
[4:18] AI?
[4:19] And he said, yeah, we're very
[4:20] counterculture.
[4:21] We're very against AI. We're like, screw
[4:23] AI.
[4:25] You know what I mean? We're not going to
[4:26] use it out of principle.
[4:28] And I'm sitting here and this is just a
[4:30] normal dude.
[4:32] You know what I mean? He's not a
[4:33] Bitcoiner. He's not probably like all
[4:34] tuned in to
[4:36] how Anthropic uh tweets about their new
[4:39] models are crashing stock. He doesn't
[4:42] have a [ __ ] clue.
[4:44] This dude
[4:46] he work he does accounting and then he's
[4:49] smoking meats and he drinks Guinness and
[4:52] he plays golf.
[4:54] And I sat there and was like, oh my god,
[5:00] like
[5:02] nobody has any idea.
[5:05] Nobody has any idea.
[5:08] That was my literal react That's why I
[5:09] was like, I have to talk about this on
[5:11] the show. Nobody has any idea.
[5:16] The VIX, the volatility of the stock
[5:18] market, remains low. The bond market
[5:20] volatility, the move index, remains low.
[5:22] Credit spreads remain wide. I mean,
[5:24] markets are ho-hum
[5:26] as if everything's fine, nothing is
[5:29] wrong. We're casually reshoring, which
[5:32] we like nobody has any idea. Oh, stock
[5:36] market all-time highs. Oh, the United
[5:38] States won the gold medal in hockey. USA
[5:41] you Nobody has any idea.
[5:44] So, let's take a look, guys. First of
[5:46] all,
[5:48] corporate America
[5:50] is panicking right now. If you take even
[5:53] a second to do a little bit of research,
[5:56] you'll realize [ __ ] is already hitting
[5:59] the fan.
[6:00] Okay? This is AI disruption mentions in
[6:03] earnings calls.
[6:06] Q4 earnings calls hit a smashing record,
[6:09] nearly doubling prior mentions.
[6:13] Look at the growth of AI disruption
[6:15] mentions during earnings calls over the
[6:18] last 4 years.
[6:20] It went from barely a mention to a
[6:22] mention on every single call. I need you
[6:25] guys to conceptually understand the rate
[6:27] and pace of that level of change.
[6:30] It went from Wait, AI is an actual
[6:33] thing?
[6:34] to if you have an earnings call and AI
[6:37] is not mentioned, there's a problem.
[6:42] Guys,
[6:43] that's insane.
[6:45] Now, over the weekend,
[6:48] I don't know how to pronounce this
[6:50] research firm, Citrini? Citrini? Let's
[6:52] just go with Citrini.
[6:54] This research firm, Citrini,
[6:56] posted a Substack article.
[6:59] And it's actually really good read. I
[7:01] recommend reading it. It's long, though.
[7:03] It's long. I you can see my little AI um
[7:08] thing, this browser extension I have
[7:10] that reads everything to me. Um it was
[7:12] about a 45-minute read, but I had I had
[7:14] my morning espresso, it read to me
[7:17] um while I was playing some chess. It
[7:18] was a good read.
[7:20] And
[7:21] the the article is
[7:24] titled the 2028 global intelligence
[7:26] crisis.
[7:28] And it's
[7:30] as if we're in June 2028 and they're
[7:33] writing their traditional macro monthly
[7:35] newsletter, but unemployment's at 10%,
[7:39] the stock market has gotten hammered,
[7:41] and it's a 2-year look back as to where
[7:44] we are today as if we're in the year
[7:46] 2028 of what happened.
[7:49] That this giant deflationary wave of
[7:52] technology hit us in the face, crashed
[7:54] the stock market, um uh
[7:57] rendered everyone unemployed, and just
[8:00] destroyed the world as we know it. And
[8:03] as I've said before, you're a victim if
[8:05] you want to be, right? And obviously
[8:07] rendered a beautiful world for humans as
[8:10] creators and efficiency and deflationary
[8:13] tendencies making everything more
[8:15] accessible and achievable, but ruined
[8:17] this debt-ridden system that we had
[8:19] built.
[8:20] Okay, cool article, Substack article.
[8:21] Who gives a [ __ ]
[8:23] Well, Monday morning, the stock market's
[8:26] getting obliterated and what hits the
[8:27] Bloomberg terminal is software payment
[8:31] shares sink after Citrine Citrini post
[8:34] on AI risks.
[8:36] Wall Street is citing this Substack post
[8:39] as why the stock market is crashing.
[8:42] And I screenshotted Arthur's tweet here,
[8:45] which reads, "The AI destruction common
[8:47] knowledge game is revving up."
[8:50] Because it's one thing for me to be
[8:52] talking about this.
[8:55] It's one thing for Bitcoin to be warning
[8:57] us about this.
[8:58] Then to see people posting about it on
[9:00] Substack and you're getting these kind
[9:01] of like semi-nonfiction looks into the
[9:04] future of what a world looks like if AI
[9:07] actually works. And it's actually
[9:10] working, right? And then it's a whole
[9:13] other thing for Wall Street to now be
[9:15] reading all of our Substack, be watching
[9:18] all of our podcasts, and being, "Holy
[9:20] [ __ ] sell all the stocks. Deflation is
[9:23] meeting a debt-ridden system."
[9:27] And let me let me make a quick point
[9:28] here.
[9:29] Because sometimes I I see people say
[9:32] things like, "Well,
[9:35] the AI agents aren't that good. Have you
[9:37] Have you tried to tell it to um make
[9:41] ingredients for meatloaf? It's not that
[9:43] good. I can make better meatloaf."
[9:45] That's not the point.
[9:47] The point is it will eventually get that
[9:50] good. That's the point. That's not how
[9:53] markets work. You guys need to
[9:54] understand this point really quickly.
[9:56] Pay attention. If you're If you're
[9:57] hitting a PR on the bench, if you're
[10:00] driving and you're switching lanes, pay
[10:02] attention.
[10:04] This is how markets work.
[10:06] They price in the future.
[10:09] If it will happen, you price it in now.
[10:14] It's not about whether Claude can make a
[10:17] better meatloaf ingredients list than
[10:19] you today.
[10:20] It will eventually. That's the point. It
[10:23] will be a better accountant. It will do
[10:26] better analysis on your blood work. It
[10:28] will write better legal documents. It
[10:31] will write better software. The point is
[10:33] it will.
[10:34] And any doubt that it won't and it can't
[10:37] is gone.
[10:39] And the way markets work is they start
[10:40] start pricing that reality in today.
[10:43] They're forward-looking.
[10:48] You understand?
[10:50] And so whenever whenever anyone ever
[10:52] says, "Well, there these things aren't
[10:53] that good." That's not the point.
[10:55] Now, if we're talking about how they can
[10:57] impact your life today, yeah, I don't
[10:59] use AI for everything yet. I use AI for
[11:01] some things. I use AI to help me make
[11:03] this show. It's really good at making
[11:05] slide decks.
[11:06] It's not really good at other things.
[11:09] That's a separate conversation. How is
[11:11] it going to impact markets? Will it
[11:14] cause enough disruption in the job
[11:17] market to
[11:19] cause a cascading debt spiral in this
[11:22] $40 trillion debt-ridden fiat system?
[11:26] That's the question you need to ask
[11:27] yourself.
[11:29] Why is Bitcoin acting like the world is
[11:32] on fire?
[11:35] Why is AI disrupting and displacing jobs
[11:38] on every single earnings call? Why is a
[11:40] Substack article being referenced as the
[11:43] reason there's red dots everywhere all
[11:46] over everyone's Bloomberg terminal?
[11:48] That's the thing you need to ask
[11:50] yourself. When you're at happy hour and
[11:52] some dudes like, "Bro, these models
[11:53] aren't even that impressive."
[11:56] That's not how markets work.
[11:58] So, one Substack post, a single research
[12:02] post,
[12:03] look at the damage done. Visa,
[12:06] Mastercard, DoorDash, ServiceNow,
[12:09] Blackstone, murdered. Murdered in the
[12:14] Substack post. Again, you guys should
[12:15] read it. It not only talks about AI, it
[12:18] talks about stablecoins. It's Again,
[12:20] it's in the year 2028. It's like I go
[12:22] and I buy I forget what it said exactly.
[12:24] I go buy a bacon, egg, and cheese and I
[12:26] use stablecoins and there's no
[12:28] interchange for Visa to take anymore.
[12:30] Anyone can be on the issuing side.
[12:32] Anyone can be on the acquiring side.
[12:34] Now, I I don't know why stablecoins are
[12:38] that innovative. We'll get to that in a
[12:40] second during the grind my gears, but I
[12:43] agree with the notion that open networks
[12:45] will beat these closed predatory
[12:47] monopolistic networks. And so this
[12:49] futuristic post where extreme deflation
[12:52] technology is so good at bringing the
[12:55] cost of everything down, bringing
[12:57] efficiencies into our life, and all of
[12:59] these legacy models are finally getting
[13:02] disrupted by pure innovation for
[13:04] everybody.
[13:05] Look at the damage done.
[13:07] I mean, Visa down 4 and 1/2% Mastercard
[13:10] down 6 and 1/2% American Express down
[13:13] almost 8% Capital One down over 8% from
[13:17] a Substack post.
[13:20] You cannot make this [ __ ] up. We live in
[13:22] the craziest timeline.
[13:25] Guys, like this is crazy.
[13:29] This is real life. I woke up this
[13:31] morning
[13:32] and I had my espresso
[13:34] >> [snorts]
[13:36] >> and I'm like, "Wait, what?"
[13:38] Some dude wrote a Substack post
[13:41] and companies are losing tens of
[13:43] billions of dollars of equity capital.
[13:46] What did he say?
[13:48] And I click into the thing. I kid you
[13:50] not. I click into the thing and he's
[13:52] like, "The year is 2028. I just scanned
[13:55] a QR code with my stablecoin fintech
[13:58] wallet for my new AI agent subscription.
[14:01] I no longer need a nurse, an accountant,
[14:04] or a lawyer, or an engineer. I simply am
[14:08] an artistic expression of my interests."
[14:10] And I'm like, "This guy crashed the
[14:12] stock market?"
[14:14] >> [laughter]
[14:16] >> Oh, we live in the best timeline. So,
[14:20] just more details,
[14:22] the repricing is happening as we speak.
[14:24] Like literally as I'm talking, [ __ ] is
[14:26] selling off. The S&P is down 2% from its
[14:29] highs. Software, which we know has been
[14:32] relatively correlated to Bitcoin
[14:33] recently, is down anywhere from 30 to
[14:36] 65%.
[14:37] So, the tweet on the left reads, "This
[14:39] is absolutely insane." On February 20th,
[14:42] which is 3 days ago, at 1:00 p.m.
[14:44] Eastern, Claude announced Claude Code
[14:46] Security. It's an automated AI tool that
[14:49] scans a software code base for
[14:51] vulnerabilities.
[14:53] As of 1:00 p.m. Eastern today, two
[14:55] trading days later of that announcement,
[14:57] CrowdStrike, the stock, is
[15:01] down $20 billion in market cap.
[15:05] Just a complete nuke.
[15:09] Then the tweet from Charlie, percentage
[15:11] below all-time highs.
[15:13] I'm not talking about Bitcoin. I'm not
[15:15] talking about your cousin's uh
[15:18] boyfriend's
[15:19] uh nephew's favorite shitcoin. I'm
[15:22] talking about equities. I'm talking
[15:24] about the S&P. Percent below all-time
[15:26] high.
[15:27] S&P 500 down 2% Microsoft
[15:32] Microsoft
[15:33] down 30%
[15:36] Synopsys 36% Palo Alto Networks 36%
[15:41] CrowdStrike 38% Palantir 38% AppLovin
[15:47] 50% Salesforce 52%
[15:52] Intuit 57%
[15:56] ServiceNow 59%
[16:00] Oracle 60 6 0%
[16:05] Adobe 65%
[16:11] See, the problem is people say, "Uh the
[16:14] >> [laughter]
[16:16] >> My imitation game is just too strong.
[16:18] It's so strong it makes me laugh at
[16:20] myself.
[16:21] The problem is people "Uh the Bitcoin
[16:23] was the new gold. I thought Bitcoin was
[16:25] supposed to be better gold."
[16:27] Yeah, but
[16:28] it's a becoming asset.
[16:31] Hey, [ __ ]
[16:32] An asset can't go from leaking on an
[16:36] email list to being the new gold. Do you
[16:39] know how long it took gold to be gold?
[16:41] Tens of thousands of years.
[16:43] Like Bitcoin is the size of Tesla. It's
[16:46] going to take a second. How about you
[16:48] submit a pull request to the [ __ ]
[16:50] open-source repository and stop
[16:52] complaining and help the future of
[16:54] humanity and your kids' kids.
[16:58] Anyway, "Uh the Bitcoin was the new
[17:00] gold." Well, here's the problem.
[17:03] Bitcoin's correlation to gold is 0.09.
[17:07] In other words, it's not correlated at
[17:09] all. In other other words, for people at
[17:12] home that need help in turning their
[17:16] brain on, Bitcoin and gold don't move at
[17:19] the same time. They're fundamentally
[17:21] different assets in that way for now.
[17:24] For now.
[17:26] All of us that believe Bitcoin will
[17:28] become the one money, we are buying the
[17:30] future. That The The The value upside
[17:33] we're getting is because the world
[17:34] doesn't realize what we realize yet. So,
[17:37] people need to fundamentally understand
[17:38] that.
[17:40] Now, for everything that isn't gold,
[17:41] that isn't the legacy central bank
[17:44] sovereign safe haven,
[17:47] again, guys, Bitcoin cannot be a central
[17:49] bank sovereign safe haven cuz it's not
[17:51] big enough yet. It's the size of China's
[17:53] annual trade surplus.
[17:56] It's literally like the skeletal frame
[17:58] of Bitcoin. It's like asking a teenager
[18:02] to bench press 500 lb. He's going to
[18:04] kill himself put taking the bar off the
[18:07] rack.
[18:09] Okay?
[18:10] Now, for everything else,
[18:12] Bitcoin is acting like a fortune teller.
[18:16] It's acting like it knows the future.
[18:19] So, Bitcoin falls off a cliff and
[18:20] everyone's like, "Oh my god, everything
[18:22] you said is wrong. Bitcoin's broken. Oh
[18:25] my god, hold my hand. Cradle me like a
[18:28] baby." But then, you just let the future
[18:31] play out as Bitcoin is warning us of
[18:33] something. And listen to this.
[18:36] Microsoft down 30%. Microsoft's barely
[18:39] outperforming Bitcoin in a bear market.
[18:42] Oracle's down 60%. Oracle is performing
[18:46] worse than shitcoins, than Ethereum.
[18:50] Isn't Larry Ellison like one of the
[18:52] richest guys in the world?
[18:54] So, you're even starting to you know,
[18:56] here's here's where it gets like, "Okay,
[18:58] I'm not exaggerating." You're even
[19:00] starting to see comments from the Fed.
[19:03] Fed Governor Waller
[19:05] said, "Weak labor market is likely to
[19:08] continue going forward. CEOs say
[19:10] significant job cuts are coming from
[19:13] AI."
[19:15] If you're getting forward signs from the
[19:18] Fed, that is signal to sell everything
[19:23] and take cover.
[19:25] This is serious. The Federal Reserve is
[19:28] saying, "Weak labor market is going to
[19:30] continue." All All your friends and
[19:32] family, they're all going to get fired
[19:34] because the CEOs are telling us that um
[19:38] AI is just getting started.
[19:40] Wait, who said that? Your drunk uncle?
[19:42] No, the Fed.
[19:44] >> [laughter]
[19:45] >> The Fed said that. Not the Jack Mallers
[19:47] show. The Jack Mallers show said that 2
[19:49] months ago. The Fed said that.
[19:52] So, if you take a look at the actual
[19:54] data, this is not a normal recession or
[19:57] whatever. I guess technically it's not a
[19:59] recession, although it it absolutely
[20:01] should be.
[20:02] Um take a look at the white-collar
[20:05] joblessness
[20:07] that's happening right now. So, this is
[20:08] from a Bloomberg article. White-collar
[20:10] joblessness rose in 2025.
[20:14] And if you see how much it rise, office
[20:16] and administrative support getting
[20:18] hammered. Management, business and
[20:20] financial getting hammered. Sales and
[20:22] related getting hammered. Professional
[20:25] and related getting hammered. What's not
[20:28] getting hammered?
[20:29] What actually
[20:31] is growing in jobs?
[20:34] Installation, maintenance and repair.
[20:37] Transportation and material moving.
[20:39] Construction and and extraction.
[20:42] Production, farming, fishing and
[20:45] forestry.
[20:47] Now, this guys, again, this is the
[20:49] beginning of this new monetary order
[20:53] where we're no longer going to be the
[20:55] world reserve currency as we know it.
[20:58] I've told you, do I expect a politician
[21:00] to admit that out loud? No, I do not.
[21:02] It's going to take the world a lot of
[21:04] time to understand what you and I
[21:06] understand.
[21:08] But,
[21:10] what's going to happen? The US has to
[21:12] reshore blue-collar work, producing real
[21:15] things. It has to bring back a
[21:17] manufacturing base, infrastructure, core
[21:19] materials, a defense an an ability to
[21:22] manufacture and produce its own defense.
[21:25] That means blue-collar is coming back
[21:27] and white-collar is getting disrupted.
[21:31] This is just a taste of the trend I've
[21:34] been screaming about.
[21:36] Farming, fishing up.
[21:39] Office, administrative, management,
[21:41] business, financial, sales down. And
[21:43] here's the thing, and I've talked about
[21:45] the book The End Times.
[21:47] When you live in a hyper-financialized
[21:49] economy driven by fiat and dollar and
[21:51] printing pieces of paper that you've
[21:54] monetized as the populace's time,
[21:57] energy, effort and labor,
[21:59] what happens is in order for people to
[22:01] live a life that they deem worth living,
[22:04] meaning they want to get married, they
[22:06] want to have kids, they want to have a
[22:08] house, they want to go on vacation, they
[22:11] want to own a car, they want to be able
[22:14] to acquire energy, meaning the car needs
[22:17] to drive, the plane needs to fly, the TV
[22:19] needs to turn on. They have an
[22:21] energy-consuming lifestyle.
[22:23] Everyone feels like they need to go to
[22:25] university to do that. They need to go
[22:27] to university, get in debt and have a
[22:29] high-flying tech job, a high-flying Wall
[22:31] Street job, a high-flying venture
[22:33] capital job.
[22:35] Everyone was pushed to the coasts, New
[22:38] York,
[22:39] San Francisco, and pushed to
[22:42] white-collar work.
[22:44] So, you have to understand the amount of
[22:47] income focused in these office,
[22:49] administrative, management, business,
[22:51] financial, sales, professional services.
[22:54] Finance.
[22:56] The amount of income and tax receipts
[22:59] that AI is going after is immense. It's
[23:02] what underpins this massive economy
[23:06] that's backed by $40 trillion in debt.
[23:11] So,
[23:13] on on that note, that was my segue into
[23:16] the educated class is what I call them.
[23:19] I don't know. Young kids are just I mean
[23:24] I'm terrified for the revolutionaries
[23:27] that we're creating today.
[23:30] You know, I
[23:32] man.
[23:40] You know,
[23:41] here's some real
[23:43] Let me get real for a second.
[23:49] When I when I build these businesses,
[23:51] Strike 21,
[23:53] you know, our core target customer is a
[23:57] big business or an institution or a
[23:59] high-net-worth individual because it's
[24:02] very difficult to monetize people
[24:04] in financial services that don't yet
[24:06] have wealth.
[24:07] Right? Like, where do I make the most
[24:10] revenue or the most money? Well, when
[24:13] someone takes out a $100 million loan or
[24:15] buys $10 million worth of Bitcoin for
[24:17] their business,
[24:18] you know, obviously that's our
[24:20] commission is higher than the
[24:22] 21-year-old
[24:24] that uh buys $5 worth of Bitcoin because
[24:29] they shoveled snow for their neighbor.
[24:31] Right?
[24:33] However,
[24:34] people have seen me try and reach the
[24:37] youth.
[24:39] I make a concerted effort to make sure
[24:41] that I don't alienate my generation and
[24:44] those below me.
[24:46] Wear the hoodie. Be real.
[24:49] Talk normal. Don't turn into a suit.
[24:51] Don't appease these chumps on Wall
[24:54] Street.
[24:55] And
[24:57] you know,
[24:58] one of the many reasons I do that
[25:02] is because you have to understand the
[25:04] crisis that's happening to the youth.
[25:08] You have to.
[25:10] You cannot say, "Oh, back in my day, I
[25:13] used to have to walk to school. Now
[25:14] these kids can call an Uber."
[25:18] You're You don't understand what they're
[25:19] going through.
[25:21] And so, I pray
[25:23] even if we get a few kids listening to
[25:26] this show, and I know I curse and some
[25:28] of the topics are hard to understand,
[25:31] but this is how revolutions are born.
[25:35] And this is where people pick up weapons
[25:37] and hurt themselves or hurt other
[25:39] people. Um this is where it gets scary.
[25:43] So, these tweets, 42% of recent college
[25:46] graduates are underemployed, the highest
[25:49] level since COVID.
[25:52] Unemployed Americans with 4-year college
[25:54] degrees hit a record in January at 36.6%
[26:00] of those aged 25 and older.
[26:04] New graduates now account for just 7%
[26:09] of new hires at Big Tech, down from 25%
[26:14] only 2 years ago, and over 50%
[26:18] before COVID.
[26:21] Before COVID, if you got a college
[26:23] degree, you were basically employed.
[26:26] After COVID, 25%. You better have gotten
[26:30] good grades, you better have taken it
[26:31] easy on the booze and the partying. Now,
[26:34] college degree means nothing.
[26:40] So, how's this for a sick joke?
[26:44] Kids are born today
[26:47] and encouraged to get into as much debt
[26:49] as possible just to have a chance at
[26:52] what they see in the movies. Just to
[26:54] have a chance to experience what their
[26:56] parents did. Just to have a chance to
[26:59] feel happy enough and optimistic enough
[27:02] about their future.
[27:04] Just to have a chance to own a home.
[27:07] Not to actually own a home, a chance to
[27:10] drive a car, a chance
[27:13] to fall in love and have kids.
[27:17] Go up to their eyeballs in debt.
[27:19] Hundreds of thousands of dollars worth
[27:21] of debt.
[27:23] And there's no job for them.
[27:26] That's a sick joke.
[27:29] Push kids into mountains of debt. These
[27:32] are children, you know? Epstein seems to
[27:35] be the hot topic. We talk about what's
[27:37] the age of consent.
[27:40] When are you abusing children?
[27:45] Children can't consent to sexual
[27:47] activity until they're adults. But, you
[27:50] have these mobsters and these thugs on
[27:53] Wall Street and in the government
[27:55] pushing them into eyeball levels of
[27:58] indebtedness before they're adults.
[28:00] You got 16, 17-year-old kids signing up
[28:03] for $100,000
[28:05] of debt.
[28:07] That's abuse.
[28:12] So, I'm I'm I'm in my early 20s. I have
[28:16] I'm up to my eyeballs in debt. I have no
[28:18] way to pay it back. No one is willing to
[28:19] give me a job.
[28:22] And you wonder why these kids don't like
[28:24] Elon Musk. They vote for Mom Donny. They
[28:26] want to violate property rights. They're
[28:28] picking up weapons. They're organizing
[28:30] in Discord chats.
[28:34] Now, the way out is to build a better
[28:37] future. We did not have a choice
[28:41] to what we inherited,
[28:43] but it is our choice to what we grow
[28:47] into and what we build and what our kids
[28:48] inherit. That's up to us.
[28:52] But, let me tell you firsthand, the most
[28:55] painful thing is when you have adults
[28:57] say, "Well, I I used to have to walk to
[28:59] school." Shut the [ __ ] up.
[29:09] You also got to buy a $15,000 house.
[29:13] Going to a movie was a quarter.
[29:16] Getting an education didn't require
[29:18] a debt that takes a life to pay off.
[29:21] And you weren't competing against
[29:24] digital intelligence to just make rent.
[29:29] How about that? How about that? Hey,
[29:31] I'll walk to school if you compete
[29:33] against digital intelligence.
[29:41] Shout out to all the youth out there.
[29:43] We're going to build our way out of
[29:44] this.
[29:45] Do not pick up a weapon.
[29:48] Do not take on any more debt.
[29:51] We're going to stay humble. We're going
[29:52] to stack sats and we're going to make it
[29:53] to the other side.
[29:55] Um so from Bloomberg,
[29:57] unprecedented jobless boom test limits
[29:59] of US economic expansion.
[30:02] So again guys, my point is this stuff is
[30:05] happening. So if you look on the left,
[30:06] this graphic is from the Bloomberg
[30:09] article.
[30:11] US real GDP traditionally is correlated
[30:15] to
[30:16] payroll, right? When GDP is booming,
[30:18] supposedly the economy is booming, the
[30:20] economy is booming, everyone's got a
[30:21] job, everyone's making money, everyone
[30:23] can afford whatever it is for you. The
[30:26] first class
[30:27] uh flight seat on your vacation, uh
[30:30] supersize your meal, uh whatever. I I
[30:33] don't know what that is for you, right?
[30:35] You can afford it, the economy's
[30:36] humming.
[30:37] Okay? But what you're looking at on the
[30:39] left is US GDP is ticking up again
[30:42] because of AI, but payroll is heading
[30:45] towards recessionary levels.
[30:48] And so payroll's heading down, GDP's
[30:50] heading up. That's the K-shaped economy
[30:53] visualized, right? There's a lot of
[30:55] wealth being created, but it's highly
[30:57] concentrated. And everyone young
[31:00] unemployed, everyone white-collar, and
[31:02] they're using this term underemployed.
[31:04] Underemployed means I have a business
[31:07] degree from Kellogg at Northwestern and
[31:09] I'm making your Chipotle burrito.
[31:11] That's what they mean by underemployed.
[31:13] Now what's the difference between
[31:14] underemployed unemployed? I count it
[31:16] effectively the same.
[31:18] Is that
[31:19] those people never going to own a home,
[31:21] they're going to be depressed, um
[31:22] they're going to revolutionize. Um it's
[31:24] just bad, it's dangerous, it's sad.
[31:27] So this is
[31:28] not something I'm speculating on
[31:30] anymore. This is not something I'm
[31:32] predicting anymore. This is happening.
[31:34] Okay? From the Wall Street Journal on
[31:35] the right, healthcare work propels US to
[31:38] strongest job growth in more than a
[31:40] year. And the article goes through how
[31:43] so I'll read the subhead or
[31:44] or subheader. Job surge 130,000 in
[31:47] January while unemployment fell to 4.3%.
[31:52] Um but the article goes on to just tell
[31:55] it's all healthcare.
[31:57] It's all healthcare.
[31:59] So again, you've got a business degree,
[32:02] you want to be an accountant, you want
[32:04] to be a lawyer, um you want to be in
[32:07] finance, um not only are there is there
[32:10] no one hiring you, if you are one of
[32:12] those, you're getting fired.
[32:15] So what can you do?
[32:17] Uh well, for one, you can punt
[32:20] shitcoins, you can punt prediction
[32:23] markets, you can gamble on sports. So
[32:25] again, why
[32:28] why is hyper-speculation
[32:30] so popular? Because during currency
[32:33] debasement, the fall of an empire, when
[32:35] deflationary technology meets a
[32:37] debt-ridden society,
[32:40] everyone's a speculator, whether you
[32:42] know it or not.
[32:44] Someone that has never heard of me and
[32:46] the show and Bitcoin and financial
[32:47] markets, they're also a speculator.
[32:50] You're getting compensated in a currency
[32:52] that cannot support your future. Things
[32:54] that you need to acquire in your future
[32:56] are getting more expensive than you are
[32:58] earning.
[32:59] There are less opportunities for you in
[33:00] the economy
[33:02] and everything around you is getting
[33:03] more expensive. That turns you into a
[33:05] gambler, whether you know it or not. Cuz
[33:08] if you want to end up owning a home,
[33:10] well [ __ ] I better predict the final
[33:12] four correctly.
[33:14] I better put options on Nvidia's
[33:16] earnings.
[33:18] I better Well, it was too late. I I
[33:20] didn't buy Bitcoin in 2010.
[33:23] Better better hope Dogecoin goes up.
[33:26] That's what happens. So
[33:29] the last thing I wanted to note before
[33:30] we move on is just a reminder that this
[33:33] is also a war.
[33:36] So not to make the AI companies the bad
[33:38] guys here. In fact,
[33:40] I think that they're it's unbelievable
[33:43] what they're achieving.
[33:44] Mind you, technology is deflationary and
[33:48] technology is arguably the greatest
[33:50] trait us humans have.
[33:53] We're able to collaborate, we're
[33:55] future-oriented,
[33:57] and we build tools. That's what Steve
[33:58] Jobs said, right? Like the biggest
[34:00] difference between us and other primates
[34:01] is we're tool builders. Steve Jobs had
[34:03] that amazing quote where he said, "If
[34:06] you compare us
[34:07] to other primates, we're us running
[34:10] versus jaguar, us running versus I don't
[34:13] know, what whatever the fastest these
[34:15] animals. We're not the fastest by far.
[34:17] There's way more efficient faster
[34:19] species than humans.
[34:21] But you know what no one can compete
[34:22] with? Us in an in an airplane or us in a
[34:26] car.
[34:27] It's not even a competition.
[34:29] We dust everybody. And what's the
[34:32] insight there? The insight is humans are
[34:33] tool builders. Don't measure us in plain
[34:36] form. Measure us by what we build.
[34:40] And what we're building in AI is
[34:42] deflationary is when kid when you're in
[34:45] school, they talk about deflation like
[34:47] it's a bad thing because it does crash
[34:50] the economy. But what we'll talk about
[34:52] in this episode is why that's not the
[34:54] technology's fault, that's the economy's
[34:56] fault. Deflation makes everything
[34:59] easier, more efficient, more achievable,
[35:01] more accessible.
[35:03] When things are deflationary,
[35:05] your money goes further. Think about it.
[35:07] If AI ends up changing all of our lives,
[35:10] you don't need to pay an accountant
[35:11] anymore. You don't need to pay software
[35:13] developers anymore. You don't need to
[35:15] pay lawyers anymore. You don't need to
[35:17] pay money managers anymore. Think about
[35:19] what Bitcoin and AI can do for you. You
[35:21] are your own bank, you are your own
[35:23] money manager, you are your own software
[35:25] engineer, you are your own accountant,
[35:27] you are your own lawyer.
[35:29] You are empowered and limited. You are
[35:31] only limited to your own ambition and
[35:34] your own ideas.
[35:36] That's incredibly empowering. It brings
[35:38] the cost of everything down
[35:40] tremendously.
[35:41] The only thing you really need to make
[35:42] sure you can pay for is a roof over your
[35:44] head and the food that goes in your
[35:45] belly. That's it.
[35:48] That's incredible.
[35:50] That's incredible. Now, bringing it back
[35:52] to this slide,
[35:54] it's also national security. So
[35:56] Anthropic tweeted today, "We've
[35:58] identified industrial-scale distillation
[36:00] attacks on our models DeepSeek uh excuse
[36:03] me, on our models by DeepSeek, Moonshot
[36:06] AI, and MiniMax.
[36:08] These labs created over 24,000
[36:10] fraudulent accounts and generated over
[36:12] 16 million exchanges with Claude
[36:14] extracting its capabilities to train and
[36:16] improve their own models."
[36:19] So you know, what's kind of funny,
[36:22] I I will I will say, China seems to be
[36:25] trying to extract intelligence out of
[36:28] the US via these attacks
[36:31] and open source it.
[36:33] So
[36:34] it's it it is interesting. I got to
[36:36] admit. You know,
[36:38] the way that the American media and the
[36:40] American corporations are going to
[36:41] phrase it is we're being attacked,
[36:42] China's coming after us, but China's
[36:45] China's What China's trying to do is
[36:46] say, "All software should be open
[36:48] source. We're open like DeepSeek for
[36:50] example, we're open sourcing all of our
[36:52] AI. Um
[36:54] the world should be about real stuff."
[36:56] Um and obviously they're talking their
[36:57] own book, right? Like they've got all
[37:00] the critical minerals, they've got all
[37:01] the rare earths, they've got all the
[37:03] production and manufacturing
[37:05] capabilities, they've got all the
[37:06] defense capabilities. So they're talking
[37:08] their own book, but you know, I do
[37:11] believe in open source software.
[37:13] You know, this whole US versus China
[37:15] cold war and AI war, there's a lot of
[37:18] catch-22s. Like do I like that China is
[37:21] aggressively trying to basically latch
[37:24] on to how fast US development is
[37:27] enhancing
[37:29] um and just basically cheat off our
[37:32] homework? No. I would much rather the
[37:34] internet and the West and distributed
[37:37] networks defeat the CCP.
[37:39] But
[37:41] I am a fan of open source software. I
[37:43] would really appreciate it if if OpenAI
[37:46] and Anthropic if they all open source
[37:48] their models.
[37:50] If Elon open sourced his Twitter or X
[37:53] algorithm.
[37:54] But anyway, the point is just a reminder
[37:56] that this is of national security.
[37:58] So the other thing to keep in mind is
[38:01] losing the AI race is not an option.
[38:03] It's going to be important. I'll I'll
[38:05] reference it back later, but what we
[38:06] can't have happen as a country is say,
[38:08] "Holy [ __ ] this is all going way too
[38:10] fast."
[38:11] Uh over-regulate the AI industry to
[38:13] where no one can build anything and then
[38:16] China takes over the AI race. That's not
[38:18] an option. It's been declared not an
[38:21] option. This has been declared a
[38:22] national security threat. This is of
[38:23] national security interest. So my point
[38:25] is this is a one-way train. It's only
[38:28] getting faster and these things are
[38:30] already happening. So what seemed to be
[38:32] like a credit crisis brewing and as
[38:35] Bitcoin seemed to be hinting that out,
[38:37] um
[38:39] yeah, this seems to be the case. So
[38:41] entering chapter two,
[38:43] deflation meets debt. Why a successful
[38:46] AI is bad for markets. So here's the the
[38:50] logic and I just want to break it down
[38:51] for those who don't totally understand.
[38:54] AI is a productivity shock. That's what
[38:58] all technology is, right? Like the car
[39:01] made us highly productive relative to
[39:04] horses. The airplane made us even more
[39:06] productive. Technology are traditionally
[39:10] productive tools. They provide
[39:12] efficiencies in the marketplace that
[39:13] previously were not there.
[39:16] And by the way, that's how the free
[39:18] market and technology works. You don't
[39:20] build something that isn't better than
[39:22] what already exists because if you do,
[39:24] you'll fail. So this form of Darwinism
[39:26] is the only things that you're
[39:28] incentivized to build and the only
[39:30] things that succeed are things that
[39:31] provide more value than the things that
[39:33] exist today. And so we have this very
[39:36] efficient system where all technology
[39:39] trends towards being productive because
[39:41] you're highly incentivized to build
[39:43] something that will actually work that's
[39:45] actually more valuable than what people
[39:47] have today. And by the way, it has to be
[39:50] a lot more valuable than what people
[39:52] have today because the switching cost
[39:54] within itself is decently expensive. So,
[39:57] you don't see technology that's
[39:59] marginally better. You see technology
[40:01] that gets way better and that humans
[40:04] just kick butt at this. I don't see
[40:05] lions building software and [ __ ] We I
[40:09] mean, we're the best at building tools.
[40:12] So, AI is the latest productivity shock
[40:15] coming from us humans, the godfather of
[40:18] all tool building, okay? What that
[40:20] causes is this term I've I've been using
[40:23] called deflation.
[40:24] Now, I put in this slide
[40:26] what it's doing is it makes the dollar
[40:28] more valuable, but I don't know if
[40:30] that's going to land with you guys cuz I
[40:32] [ __ ] on the dollar so much and I can
[40:33] already see my comments, "I thought you
[40:35] said the dollar wasn't good. I thought
[40:36] you said the dollar was" It's like,
[40:38] "God, you guys just [ __ ] donkeys in
[40:40] my comments all day." So, what I mean by
[40:43] it makes the dollar more valuable is
[40:44] what I said earlier. If the marginal
[40:47] cost of intelligence, of accounting, of
[40:50] financial services, of legal work, if if
[40:53] the marginal cost of that trends to zero
[40:56] or as close to zero as possible,
[40:59] that means that your capital goes
[41:02] further.
[41:04] Right? You can raise a a family on low
[41:07] income now because you don't need all of
[41:10] these things anymore. It brings the cost
[41:12] of everything around you down.
[41:15] Now, the reason that is a problem, this
[41:18] is a really important point. You have to
[41:20] understand why deflation is bad in the
[41:22] fiat game that we've created, this
[41:24] debt-ridden financial system.
[41:27] It's because it collapses the debt that
[41:30] they've built. Why? Let me explain. If
[41:33] we owe $40 trillion.
[41:36] If
[41:37] the dollar continues to weaken and be
[41:40] worth less,
[41:41] it's easier to pay back $40 trillion.
[41:45] Think about it this way, guys. Let's say
[41:46] we go through so much inflation and we
[41:48] go through so much dollar debasement
[41:51] that it costs $40 trillion to get into a
[41:53] movie
[41:54] in 5 years, 10 years, 20 years. Well,
[41:57] then it's really trivial to pay back $40
[42:00] trillion
[42:01] that we owe because it's only one
[42:05] movie's worth of time, energy, effort,
[42:07] and labor, right?
[42:08] The dollar's gotten so weak that the
[42:10] debt denominated in dollars is so easy
[42:13] to pay off.
[42:15] Now,
[42:16] if humans are so productive and they're
[42:19] building things like AI which delivers
[42:21] such a productivity shock that's so
[42:23] deflationary,
[42:25] that actually has the opposite effect.
[42:29] It has the opposite effect. It means
[42:31] that
[42:32] people being accountants and people
[42:34] being lawyers and people doing all this
[42:36] white-collar work and the US government
[42:38] collecting tax receipts from that isn't
[42:40] going to come close to paying off the
[42:43] because we're all going to be vibe
[42:45] coding our apps, living off whatever
[42:48] there's going to be people living off
[42:49] low income, but they're just into
[42:51] history. They're just into making music.
[42:53] They're just into whatever artist
[42:55] They're just into whatever they want,
[42:57] but you don't need that much money. You
[42:58] don't need to produce that much work and
[43:00] get that much taxed and speculate that
[43:02] much in the stock market. And it has the
[43:04] opposite effect where it gets
[43:05] increasingly more difficult to pay down
[43:08] the debt. And that's when you see if
[43:10] unemployment gets to 10%, then the US
[43:13] tax receipts come way down, then the
[43:16] deficit relative to the tax receipts and
[43:18] you start to see a death spiral. And so,
[43:21] when I say a deflationary force is
[43:24] meeting an indebted system and they're
[43:25] colliding, meaning they they one of them
[43:28] has to win.
[43:30] If we go into true deflation and AI
[43:34] renders everyone unemployed and is like
[43:37] the biggest productivity shock we've
[43:39] seen in modern history, then we're
[43:42] entering a debt spiral, a level of
[43:44] austerity that like is magnitudes
[43:48] greater than the Great Depression.
[43:51] Right? And so, what happens is a credit
[43:53] crisis. So, when I say a credit crisis
[43:56] is looming, shit's hitting the fan. The
[43:58] last episode I'm bringing up
[44:00] delinquencies. Now I'm talking about
[44:01] white-collar joblessness. I'm talking
[44:03] about the level of unemployment in the
[44:05] youth.
[44:06] Okay? Credit crisis meaning
[44:08] how much of our economy is predicated on
[44:11] mortgages, on car notes, on credit
[44:13] cards. If retail can't afford their
[44:17] payments, they're rendered delinquent.
[44:20] And what happens? Bank stocks are going
[44:22] to crater. Bank stocks are going to
[44:24] crater because the market will realize
[44:27] they have all these outstanding loans
[44:29] and they're not going to get paid back.
[44:30] When bank stock craters, stock markets
[44:33] crater, stock markets crater, the 401ks
[44:35] are in the in the [ __ ] 401ks are in
[44:37] the [ __ ] US government tax receipts
[44:39] are in the [ __ ] Tax receipts are in
[44:40] the [ __ ] then the bond market gets
[44:42] volatile. The bond market gets volatile,
[44:44] the US defaults. It's a giant game of
[44:47] charades. It's a giant Ponzi scheme
[44:50] that's predicated on more debt, more
[44:52] money printing. And so,
[44:54] the whole solution to this game is they
[44:57] have to print an immense amount of
[45:00] money, like an ungodly amount. I'm
[45:03] talking about magnitudes bigger than
[45:05] COVID. And this isn't me I'm not
[45:07] biasedly wishing for this. I'm just
[45:09] doing the math. Like there is a certain
[45:12] amount of liquidity that's going to have
[45:14] to combat these deflationary forces and
[45:16] provide the liquidity necessary to
[45:19] persist onwards. Another way to think
[45:21] about it is
[45:24] theoretically, because humans are
[45:26] constantly producing technology that's
[45:28] more efficient, providing value, and
[45:30] providing productivity gains, everything
[45:33] around you should be getting cheaper.
[45:36] And evidence of this is Bitcoin. When I
[45:39] got into Bitcoin,
[45:40] one house was like 100,000 Bitcoins.
[45:44] Now, the average house is like five
[45:46] Bitcoin.
[45:47] Life has gotten immensely cheaper for me
[45:50] in Bitcoin terms because humans have
[45:54] been more productive. If your money is
[45:56] fixed in supply, you get all the
[45:59] productivity that humans are constantly
[46:01] innovating.
[46:03] I'm soaking up all the gains from AI,
[46:06] soaking up all the gains from the
[46:08] internet. I'm soaking up all the gains
[46:10] from whatever research MIT labs are
[46:13] doing, whatever. I'm soaking up all the
[46:15] gains cuz my money supply is fixed. If
[46:19] your money supply is causing you
[46:20] inflation where things around you are
[46:22] getting more expensive, that means that
[46:25] central banks and governments are
[46:26] printing more money than humans are
[46:29] innovating.
[46:30] Just sit on that for a second.
[46:35] Because the default state is things get
[46:38] cheaper because we are producing more
[46:41] innovative, revolutionary tech. Just
[46:44] think about that for a second.
[46:46] So, the fact that we have been living
[46:48] through inflation means they're printing
[46:50] so much money that even the most
[46:53] revolutionary technologies
[46:55] aren't bringing the cost down of goods
[46:57] and services.
[46:58] And so, in order for them to maintain
[47:01] the debt system that they've built up
[47:03] and not have an utter and complete
[47:06] credit crisis,
[47:08] uh debt spiral,
[47:10] they have to print enough money to
[47:13] outlast this AI deflation
[47:16] and you've got all sorts of problems
[47:18] like what's happening in Japan, which I
[47:20] we're not even going to get into in this
[47:21] episode. So,
[47:23] here, this asset's a little small. Let
[47:26] me blow this up. Hold on.
[47:28] There we go.
[47:29] So, this is from uh the global liquidity
[47:32] index. This is I just subscribed um to
[47:35] this guy. His name is Michael Howell.
[47:37] Really good stuff. I just subscribed to
[47:39] his stuff. Um
[47:42] I just paid for his like research stuff.
[47:44] Really good. And so, he has this metric.
[47:47] Instead of debt to GDP,
[47:49] he does debt to liquidity, which is
[47:52] arguably better. And he shows this
[47:55] chart, debt to liquidity, and
[47:58] when it's high, you get these crises,
[48:01] right? So, you've got the uh
[48:04] Y2K crisis, the Lehman 2008 crisis, the
[48:07] Eurozone banking crisis. And when it's
[48:09] down, you get these bubbles. So, you've
[48:12] got the US housing bubble, you've got
[48:13] the everything bubble, which is COVID.
[48:16] And you see debt to liquidity trending
[48:18] up. It's trending towards crisis mode.
[48:21] Okay? And so, this is plumbing data. So,
[48:26] what's the debt to liquidity? Yes,
[48:28] there's a lot of money printing and
[48:30] there's some liquidity like the Fed
[48:31] paused QT, it's restarted some kind of
[48:34] form of QE, but the question is is it
[48:36] enough printing to prevent a credit
[48:38] crisis? And this is just looking at the
[48:41] debt to liquidity. This is not taking
[48:43] into account the deflationary force that
[48:45] is AI. Okay?
[48:47] And so, when I zoom back out,
[48:50] the cracks are already starting to show.
[48:52] So, last week Blue Owl came out and they
[48:55] halted withdrawals. So, Blue Owl limits
[48:57] investor withdrawals during private
[48:59] credit concerns. Blue Owl So, okay. And
[49:02] their And their stock got got crushed.
[49:04] Blue Owl Capital Inc. shares tumble
[49:07] after a decision to restrict withdrawals
[49:09] from one of its private credit funds
[49:11] raised fresh concern over the risks
[49:13] bubbling under the surface of the $1.8
[49:15] trillion market. Again, so people want
[49:18] to say, "Isn't Bitcoin the new gold?
[49:19] Isn't Bitcoin the new gold?" This
[49:22] [ __ ] market is bigger than Bitcoin.
[49:25] Bitcoin's small. Give it a rest, okay?
[49:29] Um shares of the alternative asset
[49:32] manager fell about 10% on Thursday to
[49:34] their lowest level in 2 and 1/2 years.
[49:37] Now, Blue Owl came out and gave a
[49:39] statement and said, "Whoa, whoa, whoa,
[49:40] whoa, whoa. Like, we're we're solvent.
[49:43] We're fine." And then Bloomberg comes
[49:45] out with another article that says Blue
[49:47] Owl sold their loans to pensions and
[49:50] their own insurance asset manager.
[49:53] And so, it's like, "Oh, who bailed out
[49:55] Blue Owl?" And then you read the article
[49:57] and you realize they bailed themselves
[50:00] out by selling themselves THESE LOANS.
[50:03] >> [laughter]
[50:04] >> THIS HOW is this not 2008 all over
[50:07] again?
[50:08] I mean, you got to be [ __ ] me.
[50:11] No wonder Bitcoin's been in the [ __ ]
[50:14] Bitcoin
[50:15] doesn't know any better than to be the
[50:17] most sensitive thing to fiat liquidity,
[50:21] the most sensitive thing to fiat credit.
[50:24] It's all it knows how to do. Just be
[50:26] honest. And so, you know, I titled this
[50:29] slide euphoria meets reality. Since
[50:32] COVID, the performance of stocks and the
[50:36] sentiment of consumers is totally
[50:38] divorced. We're totally living in
[50:40] K-shaped. Look at this. This is This is
[50:42] a K.
[50:45] Everyone's depressed. Everyone's
[50:47] violent. Everyone's protesting.
[50:49] Everyone's revolutionizing.
[50:51] Meanwhile, our president is like, "Well,
[50:54] if you just if you look at the stock
[50:55] market this way." No, [ __ ] [ __ ] the
[50:57] president. Pam Bondi,
[51:00] the the woman that grinds my gears,
[51:02] is like, "Hey, how about we arrest these
[51:06] people, these demons that were raping
[51:08] and killing our children?"
[51:11] She's like, "Well, look at the Dow."
[51:14] You've got these idiots, these morons,
[51:17] telling me to check the price of the
[51:18] Dow. Meanwhile, our entire country is on
[51:21] antidepressants and Ozempic.
[51:25] Sickening.
[51:28] So, the other thing that's critically
[51:30] important that I need to tell you guys.
[51:32] Cuz here's the thing.
[51:33] What people will do is they'll say,
[51:35] "Well, let's look at 2008. If we're
[51:37] entering a 2008 level crisis, global
[51:40] financial crisis, well, the markets took
[51:43] many years to rebound. It took them a
[51:46] long time to print the money. It ended
[51:49] up being a decade of of Well, not an
[51:52] actual decade, but
[51:53] relatively, of QE and of money printing.
[51:58] And so, is that what we're heading into,
[51:59] Jack?"
[52:01] No. At least Listen. Pause. I don't know
[52:04] the future.
[52:06] I hate that I have to tell you guys
[52:07] that. Guys are like, "Hey, dude, you
[52:09] said that you said" Dude, I don't know
[52:11] the future, bro. I I hate that I have to
[52:13] admit that to you. Like,
[52:15] Like, what human knows the future? What
[52:17] human thinks another human knows the
[52:19] future? Okay, I don't know what's going
[52:21] to happen. All I can do is record these
[52:24] shows and give my best effort and have a
[52:25] good time with you guys. So, I don't
[52:27] know what's going to happen. But,
[52:31] what's different from 2008? This is
[52:33] critically important.
[52:35] The IMF came out with a paper recently,
[52:38] last week.
[52:40] And they said, "Bonds have been less
[52:42] effective equity hedges since the
[52:44] pandemic, since COVID."
[52:46] And they go into explain that basically,
[52:49] when stocks sell off, now bonds sell
[52:52] off.
[52:54] Bonds traditionally are safe haven.
[52:56] We've talked about this. What's
[52:57] happening in Japan, right?
[52:59] Traditionally, the currency was
[53:00] strengthen, the bond market was
[53:02] strengthen. They're safe haven, safety
[53:04] in bonds. Bonds are no longer safe haven
[53:07] because the debt is too tall, it's too
[53:09] large.
[53:10] The US wasn't nearly as indebted 20
[53:13] years ago as it is today.
[53:16] Nearly, not even close.
[53:18] It has too much debt to even sustain
[53:21] that much pain.
[53:23] So, this on the right, from this guy
[53:26] Eric, our findings suggest that the
[53:27] Cayman Island hedge funds are
[53:30] increasingly the marginal foreign buyers
[53:32] of US Treasury notes and bonds. They
[53:34] absorbed 37% of net issuance of notes
[53:37] and bonds, nearly the same amount as all
[53:40] other foreign investors combined. I've
[53:42] talked about this before. The hedge
[53:44] funds in the Cayman Islands, they're
[53:45] performing the carry trade. They're
[53:46] performing an immense amount of leverage
[53:49] to just arbitrage. They're not actually
[53:52] lending to the United States. We know
[53:54] China isn't lending to the United States
[53:55] at the margins anymore, they're buying
[53:57] gold. We know India is also increasing
[53:59] their gold position. So, my point is,
[54:01] when equity sell off, bonds sell off,
[54:04] both because it structurally, these
[54:06] hedge funds have to unwind their
[54:08] positions cuz they're collateralized
[54:10] like by the existing financial system.
[54:12] Um and then also, it's just there's too
[54:14] much debt. So, the point that I'm making
[54:17] here
[54:19] is that
[54:20] they're going to have to print an
[54:21] immense amount of money immediately.
[54:24] Okay? That That's why when you when you
[54:26] see people say like the big print is
[54:28] coming, the big print is coming,
[54:31] the the United States doesn't have the
[54:34] tolerance and the appetite to allow for
[54:37] years of financial crisis.
[54:40] Because it would not be able to finance
[54:41] itself. It cannot afford an unruly bond
[54:45] market even for a week. Remember what
[54:47] happened during liberation day? It took
[54:49] like 4 days before Trump reversed
[54:52] everything he made and they printed the
[54:54] money. Like they they literally it is
[54:57] like a giant deck of cards that the
[55:00] single bit gust of wind of opening the
[55:04] door will blow it all down.
[55:07] And so, even the little itsy-bitsy It's
[55:09] not even It's the fact that every Here's
[55:12] Here's the thing say. Everybody knows
[55:15] that everybody knows that AI is coming.
[55:18] And that's all That's the only bit of
[55:20] gust of wind that can blow this thing to
[55:23] the ground. It doesn't actually matter
[55:25] how good Claude is at this or what Sam
[55:28] Altman said about that. The point is, is
[55:31] this deflationary and is it working? If
[55:34] that's true, the gust of deflationary
[55:37] wind will blow this whole thing down.
[55:40] And it's already happening. So, there's
[55:42] no such thing as
[55:44] Now, I don't want to take away the fact
[55:46] that this Bitcoin market has been
[55:48] painful. And I know that a lot of you
[55:49] out there have been facing a lot of
[55:50] pain. And I don't want to take that away
[55:52] from you. This is where champions are
[55:54] made. This is where you earn your
[55:56] stripes. This is where you put some hair
[55:58] on that chest. This is it. This is where
[56:01] you earn the returns when people at
[56:03] Thanksgiving say, "Oh, you just got
[56:04] lucky." No, I didn't. I was there during
[56:08] the AI credit panic. And I buckled down
[56:11] and I stacked some sats. So, I know a
[56:12] lot of you are in pain.
[56:14] And I encourage you to weather the
[56:15] storm. But, what I'm telling you is this
[56:18] is not 2008.
[56:20] They're going to have to print and print
[56:22] fast. So, the question is, when is it
[56:24] going to sufficiently break? Now, I look
[56:27] at some data, I'm like, "Well, things
[56:29] are already breaking." Now, not to the
[56:32] degree where it's panic, but check this
[56:35] tweet. So, first, wild market. We
[56:38] haven't seen anything like this since
[56:39] the dot-com bubble burst. Over the last
[56:42] eight sessions, 115 stocks in the S&P
[56:46] 500 have declined 7% or more in a single
[56:50] day. The average drawdown when that
[56:52] happens is 34%.
[56:56] Right now, we are only 1 and 1/2% below
[56:58] the all-time high.
[57:00] So, again,
[57:02] based on everything I'm talking about,
[57:05] the stock market is due for a 20, 25,
[57:08] 30, 35% correction. Now, the question
[57:11] is, are authorities going to let that
[57:14] happen? At what point do they start
[57:17] printing the money, which is when
[57:18] Bitcoin goes on its absolute tear? To
[57:22] remind you guys, Bitcoin got hit the
[57:24] hardest, fell the fastest, and fell
[57:26] first with COVID. It went from
[57:29] 8,000 to 4,000 in a day.
[57:32] But then,
[57:34] it was the best performer. It went from
[57:35] 3,000 to 70,000
[57:38] in
[57:40] a year.
[57:42] So, it gets hit the hardest, it gets hit
[57:44] first, it performs the best. It's part
[57:47] of being a champion. It's part of being
[57:48] the man in the arena. It's part of being
[57:50] a pioneer. It's part of fighting for the
[57:52] world we want to live in, a Bitcoin
[57:54] world, okay? Now, this tweet, going back
[57:58] to 1995, the US has never performed
[58:01] worse compared to international stocks
[58:04] year-to-date.
[58:06] So again, capital's rotating out of the
[58:08] United States of America. The stock
[58:10] market is getting hammered. People are
[58:12] selling the US. People are fearing
[58:15] credit crisis. AI is disrupting. It is
[58:19] leaving white collars jobless. It is
[58:21] leaving the youth unemployed with
[58:23] college degrees. This is actually
[58:25] happening. This was today. I took the
[58:28] screenshot at market close. That I'm not
[58:31] This is not crypto.com.
[58:35] This says Google, Meta, Microsoft,
[58:37] Berkshire Hathaway, JP Morgan, Tesla.
[58:41] JP Morgan down over 4% today. Microsoft,
[58:44] 3 and 1/2%. Amazon, 2 and 1/2%. Getting
[58:48] smoked.
[58:49] Getting smoked.
[58:52] This is what Bitcoin was warning us
[58:53] about. Why did Bitcoin sell off last
[58:56] night?
[58:58] Guys,
[58:59] don't fight Bitcoin Don't fight it.
[59:03] Don't try and argue with it. It's never
[59:05] wrong. It's just It's information. It's
[59:06] a utility. It's telling you something
[59:08] that nothing else can. Whenever it's
[59:10] moving, it's speaking. Just listen to
[59:12] it. So, chapter three, last chapter, the
[59:14] canary in the coal mine. Bitcoin tells
[59:16] you what's coming. So, I had tweeted
[59:18] this last week. Bitcoin is the orange
[59:21] line, has been labeled weak since it
[59:23] diverged from the Nasdaq, which is the
[59:24] white line. What if it's the smoke smoke
[59:27] alarm, the only truly free market we
[59:29] have left? If an AI-driven credit shock
[59:31] is coming, would Bitcoin detect it
[59:33] first? Maybe it's telling us what
[59:35] centrally planned markets can't. So,
[59:37] this was my tweet paraphrasing the last
[59:40] hour of me yapping and running my mouth
[59:42] is Bitcoin is telling us something.
[59:45] It's the most sensitive thing to fiat
[59:47] liquidity. It only understands how to
[59:49] price fiat credit. It's the antithesis
[59:52] of fiat. And so, if fiat's going to have
[59:54] an issue, Bitcoin's going to scream and
[59:56] shout and tell you about it. And in my
[59:58] opinion, that's what it has been doing.
[60:01] It's been able to sniff out what it's
[60:04] taking other markets a long time to
[60:06] sniff out. So, Bitcoin does not lie.
[60:09] Bitcoin is the most fiat liquidity
[60:11] sensitive asset on the planet, which
[60:14] itself has utility value. It's It's that
[60:17] within itself is intrinsically valuable.
[60:20] It is number one on the scoreboard for
[60:22] fiat liquidity sensitivity, period. No
[60:25] board of directors, no earnings
[60:27] guidance, no balance sheet to hide
[60:29] behind, it just prices the money supply.
[60:32] It is saying there is not enough credit
[60:35] in the system to meet the maker that is
[60:38] AI and the sovereign debt crisis around
[60:41] the world. We have issues. In either
[60:45] everything's going to sell off, we're
[60:46] going to go through the greatest
[60:47] depression we've ever seen, austerity to
[60:49] new levels, streets are going to be lit
[60:51] on fire, or they're going to print the
[60:53] money. Either way, Bitcoin wins in the
[60:55] end because it'll outcompete to be the
[60:57] world's money.
[60:59] Now, my prediction is they're going to
[61:00] print the money. That's historically
[61:01] what they've done. It's a It's a far
[61:03] sneakier way to default and steal from
[61:06] people.
[61:07] So, Bitcoin leads markets down. In 2000,
[61:10] we had the dot-com bust. What was What
[61:13] was 2000? A productivity shock, a credit
[61:16] event, they printed the money. Housing
[61:18] crisis, deflation, credit event, they
[61:21] print the money. COVID, demand collapse,
[61:24] credit event, they print the money.
[61:26] 2026, is it a pro- productivity shock
[61:29] with AI? A credit event and they print
[61:31] the money. Either way, they print the
[61:33] money. The question is, are we going to
[61:35] get this event in 2026, in 2027? When is
[61:38] Bitcoin going to sniff out the other
[61:41] side of the chasm in which we're
[61:43] crossing? Okay? But, the point is that I
[61:46] want to get across is they always print
[61:48] the money. Every credit crisis ends the
[61:50] same way, monetary expansion. The
[61:52] question is not if, it's when. And when
[61:56] they print, what wins? The thing you
[61:58] can't make any more of. When there's an
[62:00] infinite outflow of dollars, of fiat,
[62:04] the thing that performs the best is the
[62:05] thing that's inelastic to this
[62:07] ever-flowing supply of fiat. The thing
[62:09] that you cannot make any more, no matter
[62:11] how much more fiat is created.
[62:14] A bunch more fiat is created, gold
[62:16] miners are going to invest that and be
[62:18] able to mine gold marginally better,
[62:20] right? You cannot make any more Bitcoin.
[62:23] And so, that's why it performs the best.
[62:25] It's the best engineered money we've
[62:28] ever come across. Best money mankind
[62:31] ever, hands down, pound for pound, the
[62:34] champ, the gold medalist.
[62:37] The Bitcoin medalist.
[62:39] So,
[62:41] this I mean, just to show you guys, like
[62:43] US net international investment position
[62:45] is negative 30 trillion. So, again, like
[62:50] if we reach a deflationary crisis and
[62:52] everyone is selling everything to make
[62:55] ends meet because credit is tight, just
[62:58] a reminder that like the world owns a
[63:02] ton of US assets.
[63:05] So, when when uh
[63:07] South Korea
[63:09] South Korea came out with a tax
[63:11] exemption where if you sell US stocks,
[63:13] as long as you reinvest it into the
[63:15] South Korean market, tax-free. We're not
[63:18] going to tax you. And so, what happens?
[63:20] A bunch of capital repatriating out of
[63:23] America and into South Korea. The South
[63:25] Korean stock market has whooped the S&P
[63:27] 500's ass.
[63:29] Same with Japan. The Japanese stock
[63:30] market is killing the S&P 500. Asian
[63:34] stock market is killing American stock
[63:36] market.
[63:37] So, the pain If you guys think we've had
[63:40] pain now, there's 30 trillion dollars
[63:42] more pain to go.
[63:44] The United States cannot afford this,
[63:46] and they know they cannot afford this.
[63:48] If you listen to Warsh, the new Fed
[63:50] chair, all he's talking about is AI. AI
[63:53] this, AI that. We got to cut rates. We
[63:54] got to cut rates. We got to cut rates.
[63:55] AI AI AI. We got to cut rates. We got to
[63:58] cut rates.
[63:59] And so, the last thing I wanted to leave
[64:01] you guys with here is that when people
[64:03] will say, "Well, listen, at least
[64:05] President Trump is reshoring. He's
[64:07] bringing infrastructure and
[64:09] manufacturing back. We're We're
[64:11] de-risking ourselves from China." Um so,
[64:13] this tweet. The USGS report just came
[64:16] out. A new report from the US Geological
[64:18] Survey reveals that the United States
[64:20] has grown more reliant on foreign
[64:23] imports of minerals over the past year,
[64:25] highlighting the increased urgency to
[64:28] bolster its domestic supply chain.
[64:31] In its annual mineral commodity summary,
[64:33] the USGS found that the country was 100%
[64:37] import reliant last year for 16 of the
[64:40] non- 90 non-fuel commodities that it
[64:43] tracked. In addition, the US relied more
[64:46] than 1/2 of its apparent consumption for
[64:49] 54 of the minerals, the report showed.
[64:52] In comparison, in 2024's data, 100%
[64:55] import reliance for 15 commodities and
[64:58] more than half import reliant for only
[64:59] 46 minerals.
[65:01] So,
[65:02] the point that I have for you is the
[65:05] pain hasn't even started. Do you guys
[65:08] know how Well, hold on. Hold on. Hold
[65:10] on. Hold on. Hold on. I said that came
[65:11] out wrong. Pause. Pause. Pause. Rewind.
[65:16] The pain has started in Bitcoin. I know
[65:18] it has. I know you guys are in some
[65:20] pain. I've seen this movie a million
[65:21] times. We're going to be okay. We're
[65:24] going to be fine. We're tough.
[65:26] We're the principled moral soldiers out
[65:29] here fighting the good ethical fight.
[65:31] We're going to be okay, all right? I
[65:33] know the The Bitcoin pain has started.
[65:35] But, what I'm saying is
[65:37] the So, reshoring is going to be so
[65:41] inflationary.
[65:42] It's going to be so inflationary. Who's
[65:45] paying to reshore? Who's paying? Do you
[65:48] know how much money you're going to have
[65:49] to pay someone to get them to go mine
[65:52] rare earths in Idaho?
[65:54] No No one in Manhattan's going to be
[65:56] like, "Yeah, I want to move to Idaho to
[65:57] mine rare earths for $20,000 a year." If
[66:00] you pay them $300,000 a year and free
[66:03] education on how to do it, you might get
[66:05] some people that want to move to Idaho.
[66:08] It's going to be so inflationary.
[66:10] Commodity prices are going to continue
[66:12] to go up. Oil probably soon is going to
[66:15] have to start to go up.
[66:17] And so, sometimes people say, "Yeah, but
[66:20] at least we've made a ton of progress on
[66:22] de-risking from China, reshoring our
[66:24] manufacturing base." Uh
[66:26] according to the US Geological Survey,
[66:29] we haven't Not only have we not made any
[66:31] progress, we've made negative progress.
[66:33] We haven't even started.
[66:36] >> [laughter]
[66:37] >> So, we're about to have a credit crisis
[66:39] because of AI and all sorts of sovereign
[66:41] debt issues and what's going on in
[66:43] Japan.
[66:45] Mind you, all the actual inflationary
[66:48] pain that we knew was coming from
[66:50] reshoring hasn't even started.
[66:55] So,
[66:56] I'll end it with just some Bitcoin
[66:58] charts. Stay humble and stack sats,
[66:59] guys. So,
[67:01] the chart on the left, Bitcoin versus
[67:04] credit spreads. So, credit spreads are
[67:07] very low.
[67:09] Um
[67:11] The The point is
[67:13] I've talked about it. The business cycle
[67:16] has been down. Bitcoin likes certain
[67:18] market conditions. It likes easy money,
[67:21] and that's not the market we've been in.
[67:23] We've been in this
[67:25] difficult monetary conditions. We've
[67:26] been in uh QT. Um this has been a very
[67:30] interesting market um market conditions,
[67:34] market environment, um
[67:36] monetary environment, uh liquidity
[67:39] environment. And so, it's just that like
[67:42] if you look at Here, let me zoom into
[67:44] it. If you look at this chart, Bitcoin's
[67:47] only behaving naturally, okay? You can
[67:50] see this spike up here up top, and
[67:52] that's around when Bitcoin made its
[67:54] high, and then it's come down.
[67:57] It's come down, okay? So, Bitcoin's
[68:00] going to be fine. Okay, the next one,
[68:02] this chart has a three of three track
[68:04] record, and it just flashed again. This
[68:06] is the Bitcoin sharp ratio, which we've
[68:08] talked about. Look at the sharp ratio.
[68:10] It's reaching levels of historical
[68:12] bottoms. So, again, here's the thing you
[68:14] need to ask yourself. Do you think
[68:16] Bitcoin's going to zero? If you think
[68:17] Bitcoin's going to zero, you're probably
[68:18] not listening to this, and I wish you
[68:20] well. Have fun staying poor. If you
[68:22] don't,
[68:24] guys,
[68:25] I love Personally, I love moments of
[68:28] adversity. I love being challenged. I
[68:30] live for it. I love when people on the
[68:33] internet are talking [ __ ] about me,
[68:35] accusing me of all this [ __ ] I love it.
[68:36] I bookmark it. I screenshot it. I do. I
[68:39] swear to God, I'm a sick person in the
[68:40] head. Ask Dylan, I'm sick. I'm deranged.
[68:43] I I literally live for that because
[68:47] that's where growth is. That's where
[68:49] opportunity is. That's where something
[68:52] inside of you is challenged to find that
[68:55] extra inch, find that extra dollar, find
[68:57] that extra sat, go that extra mile.
[69:00] That's the story of my career. So, I
[69:02] love these moments. I love it. [ __ ] on
[69:05] Bitcoin. Everyone wants to quit.
[69:07] Everyone's capitulating. I've already
[69:09] been all in on Bitcoin. I'm going to
[69:10] find every ounce of liquidity. Strike's
[69:13] going to launch every feature. We're
[69:15] going to stack every sat. You just got
[69:17] to stay humble and keep stacking. This
[69:19] one, commercials are extremely net short
[69:21] Bitcoin. Large speculators are extremely
[69:24] net long. Prior cases marked bottom
[69:26] processes for Bitcoin. So, everything as
[69:29] far as I can tell looks very healthy.
[69:32] Bitcoin is doing what Bitcoin always
[69:33] does. It's calling [ __ ] It's
[69:35] sniffing things out before they happen.
[69:37] It's very efficient. It's a free market.
[69:40] So, turn on your DCAs. This one
[69:43] interesting my quantile models also
[69:46] shows Bitcoin has been cheaper than this
[69:48] level only about 4% of the time across
[69:51] its observable history. So, you're
[69:53] you've only been able to get Bitcoin
[69:55] cheaper on a relative basis 4%. So, can
[69:57] Bitcoin go go down from here? Of course
[69:59] it can. Again, I've no idea. We could
[70:01] flash down to 30k for a split instant.
[70:04] I've no clue. But, if you are here for
[70:07] the long run, if you're looking to just
[70:09] build a war chest for your future family
[70:11] on the other side of all this fiat
[70:12] nonsense, of all this garbage, of all
[70:14] this manipulation, central banking,
[70:16] centrally planned [ __ ] if you just
[70:18] want a war chest of time, energy, and
[70:21] saved labor and effort for your family
[70:24] and your kids, turn on those DCAs. We
[70:27] got no fee, no spread DCAs on strike.
[70:31] You can DCA for free, convert any
[70:34] percentage of your paycheck for free,
[70:35] and you have free withdrawals to cold
[70:37] storage. I literally I told the team, we
[70:40] need to have an ability to stack sats on
[70:42] the house and withdraw on the house so
[70:44] that we can always say, when in doubt,
[70:47] we're the cheapest place in the world to
[70:49] just securely get yourself some Bitcoin.
[70:51] Turn on those DCAs. And then this other
[70:54] tweet from Frank, selling from long-term
[70:56] holders has fallen off a cliff since
[70:58] Bitcoin corrected to below 90,000. Um
[71:01] so, the massive selling is gone. Now,
[71:04] again, can Bitcoin go lower? Of course
[71:06] it can. But, these are all things that I
[71:08] check for. I've I've been in this game
[71:11] for a very long time, guys. I'd I'd let
[71:13] you know if I was worried. I'm the
[71:15] opposite of worried. I'm buying.
[71:17] Okay, that's the end of the AI
[71:22] is causing a credit crisis show. Uh and
[71:25] now we're on to a new segment that I
[71:28] debuted last week that you guys
[71:29] seemingly liked. What really grinds my
[71:32] gears? Let me take a sip of espresso.
[71:38] All right. Shout out to
[71:41] Shout out to the listener that made this
[71:42] art. This is hilarious. So, for those
[71:45] that don't know, I got this idea from my
[71:49] intuition combined with Family Guy. So,
[71:52] I did not gain a lot of weight. That's
[71:54] just the Peter Griffin version of me.
[71:57] And this is uh this is the visual for
[72:01] what really grinds my gears. Part 1. You
[72:04] know what really grinds my gears? The
[72:07] Clarity Act, the Market Structure Bill.
[72:10] Just [ __ ] sign it already or don't
[72:13] sign it, but shut the [ __ ] up. I'm so
[72:19] sick of seeing Brian Armstrong get in
[72:23] pissy fights, [ __ ] fights with these
[72:26] [ __ ] bank CEOs. Jamie Dimon and Brian
[72:29] Armstrong are having a pillow fight and
[72:32] somehow it's impacting Bitcoin.
[72:36] These Guys, let me let me say something
[72:39] cuz people say, "Jack, are you worried
[72:40] about the Clarity Act and not passing?"
[72:43] Why would I be worried? It has nothing
[72:46] to do with Bitcoin. What are they
[72:47] fighting over? For one, they're fighting
[72:49] over can stablecoins pay interest. First
[72:52] of all, who cares? Do Do Americans not
[72:56] know that they can download Robinhood or
[72:59] they can download Marcus? You can open
[73:02] any account on your [ __ ] iPhone and
[73:05] get the the [ __ ] get 3 and 1/2% on
[73:08] your cash?
[73:10] What Why do you need a stablecoin to get
[73:12] yield on your dollars? Do you guys Hold
[73:15] on. Do you guys not know that you can do
[73:17] that? Stablecoins did not invent
[73:20] interest on your cash. Did you know
[73:22] that?
[73:25] So, what First of all, who gives a [ __ ]
[73:28] about whether stablecoins can pay
[73:30] interest or not? Nobody cares. Nobody
[73:32] needs it. If people want interest on
[73:34] their cash, they could just download
[73:36] Robinhood. Why do they need USDC? What
[73:39] That's another thing. Why would I ever
[73:41] use USDC? Ever.
[73:44] For what?
[73:46] It's I've I've had digital dollar I was
[73:48] born in 1994. I've had digital dollars
[73:52] forever. Why would I need USDC? No. No.
[73:57] No. I'm really fighting. I'm This is
[74:00] what these guys say. I'm fighting for
[74:02] the American to get interest on their
[74:04] cash. You idiot. That was invented 20
[74:08] years ago. I'm not I'm not trying to be
[74:10] hard on anybody. I'm just being honest.
[74:12] That's what really grinds my gears. I'm
[74:15] seeing these CNBC clips, you know, Jamie
[74:17] Dimon's not letting me pay interest on
[74:19] cash. You You're a [ __ ] They've been
[74:21] paying interest on cash for years. Yes,
[74:24] Jamie Dimon pays one basis point
[74:26] interest on cash, but Robinhood pays 4%
[74:30] interest on cash, and that's why
[74:32] Robinhood gets customers away from
[74:34] Chase. What does this have to do with
[74:35] Bitcoin? I'll answer it for you.
[74:37] Nothing. So, the people that say when I
[74:40] talk to reporters and they say, "Oh, the
[74:41] Bitcoin market's really reacting to the
[74:43] Clarity Act." That's the shitcoin act.
[74:45] This act has nothing to do literally
[74:47] nothing to do with Bitcoin. I don't even
[74:49] know if Bitcoin is mentioned in it at
[74:51] all because the only other thing that
[74:53] they're talking about in this act is
[74:56] moving the ability to tokenize something
[74:59] away from the SEC and to the CFTC. So,
[75:02] they're trying to change regulators so
[75:04] that they can commit what is effectively
[75:06] securities fraud.
[75:08] And they're trying to put yield on cash.
[75:13] So, what? I can get yield on cash. It
[75:16] just This it grinds my gears. Why are we
[75:19] wasting time? One of the biggest thefts
[75:22] in human history is shitcoin and these
[75:25] shitcoin kings. These guys that run
[75:27] these giant shitcoin casinos spending so
[75:31] much human capital, human time, effort,
[75:34] attention. Like, why am I getting
[75:36] dragged into Why are investors calling
[75:38] me and saying, "Are you worried about
[75:40] the Clarity Act?" WHY THE [ __ ] WOULD I
[75:43] BE WORRIED about the Clarity Act? If you
[75:45] want yield on your cash, download
[75:47] Robinhood. They've been doing this for a
[75:49] long time. It's called the fed funds
[75:52] rate. You Like I hate to break it to
[75:55] you, but USDC did not invent getting 3
[75:59] and 1/2% on your dollars. It didn't. I'm
[76:03] sorry.
[76:04] And then, do I worry about whether
[76:07] tokenizing things is going to be
[76:08] regulated by the SEC or not? No.
[76:13] What the hell does that have to do with
[76:15] Bitcoin? It has nothing to do with
[76:18] anything productive.
[76:20] What
[76:21] Answer me this.
[76:22] What This is only to enrich a bunch of
[76:27] large businesses. This is Coinbase going
[76:29] after regulatory capture. They are
[76:32] trying to further enrich themselves by
[76:34] taking advantage of a favorable
[76:37] administration creating regulatory moats
[76:39] for themselves. This has nothing to do
[76:43] with Bitcoin or any
[76:46] beneficial, efficient productivity for
[76:48] any industry whatsoever.
[76:54] Great It took grinds my gears to no end.
[76:58] What What are your thoughts on the
[77:00] Clarity Act? I don't know. Just sign
[77:03] Brian Armstrong. Just [ __ ] sign the
[77:05] thing so I don't have to hear about it
[77:07] anymore or don't sign it. But, just the
[77:10] back and forth the word I'm I'm in
[77:13] He goes on TV, "I'm really fighting the
[77:14] good fight. I've been Washington D.C.
[77:16] for the last month." How is that
[77:18] fighting for Bitcoin being in Washington
[77:20] D.C.? What the [ __ ] are you doing in
[77:22] Washington D.C.?
[77:24] Are you in for stablecoin yield and
[77:26] wanting to be regulated by the CFTC so
[77:29] you can create loads of prediction
[77:31] market shitcoin speculative trash?
[77:36] [ __ ] It's so frustrating. This shitcoin
[77:40] industry It taints the Bitcoin brand.
[77:43] People legitimately
[77:45] couple us all together.
[77:48] They do.
[77:49] Like
[77:50] I Strike Like I'm literally trying to
[77:53] rebuild the financial system on
[77:55] something that's moral and fair and that
[77:57] can last and that serves us all equally.
[78:00] That's genuinely what I'm trying to
[78:02] participate in. Very humbly. Hey, how
[78:05] can I help? Let me pick up picks and
[78:06] shovels, baby. Let's get to work.
[78:08] Meanwhile,
[78:10] these guys are in my industry on what
[78:13] planet?
[78:15] Like sleeping under Donald Trump's desk
[78:18] begging him, and meanwhile Jamie Dimon's
[78:21] bitching and crying and moaning and
[78:23] calling Brian Armstrong an [ __ ]
[78:26] [ __ ] A, man. I mean, this is how you
[78:28] know it's a bear market. Seriously, what
[78:31] the [ __ ]
[78:36] Shitcoins are just the worst. They
[78:40] really are. And
[78:42] you know you know what? I'm I get less
[78:45] upset
[78:47] over people that get duped into buying
[78:50] them. Although, I'm also I get upset by
[78:52] that, too. Don't get me wrong. Like he
[78:54] Here's what
[78:55] You I've seen these posts recently like,
[78:57] "Oh, the the NFT that Logan Paul bought
[79:00] bought for $2 million is now worth 20
[79:02] grand. The NFT Justin Bieber bought for
[79:05] $10 million is now worth $50." I've seen
[79:07] these tweets going around. And what's so
[79:11] it's so frustrating. These guys didn't
[79:14] buy those. They were given those.
[79:18] Justin Bieber didn't wire anyone a
[79:20] million dollars.
[79:22] These people are such unethical
[79:24] scammers. They're paying influencers on
[79:28] Instagram to convince a bunch of people
[79:30] that don't know any better into stealing
[79:32] their money. That's what's happening.
[79:35] So, you have a bunch of
[79:37] like unbeknownst to them retail
[79:39] investors that think they're buying into
[79:41] the new
[79:42] um
[79:43] [ __ ] Leonardo da Vinci art collection
[79:46] and they're getting completely scammed,
[79:48] knowingly scammed.
[79:50] That doesn't even bother me the most. It
[79:52] doesn't.
[79:54] Because if you're that stupid
[79:58] you kind of had it coming. You kind of
[80:00] have to touch the stove and get burned
[80:02] to learn, right? Now,
[80:05] again,
[80:06] it doesn't make me
[80:08] not upset. These people are unethical,
[80:10] they're gross, they're slimy, they're
[80:12] scammers. But, if you're that dumb to
[80:14] where you paid anything more than a
[80:16] penny for a JPEG of a monkey
[80:20] I mean
[80:21] you have what's coming, okay?
[80:23] But, what's worse
[80:25] is the waste of human capital, not just
[80:28] the money.
[80:30] You've got CNBC all day. You've got news
[80:34] and media and executives, like some of
[80:37] the biggest companies in the world and
[80:39] our government and all of our media
[80:41] outlets are covering the Clarity Act.
[80:46] Think about the theft that shitcoiners
[80:50] and shitcoins have done to society. What
[80:53] if everyone was just focused on Bitcoin,
[80:56] which was a fair money that can actually
[81:01] support society in a scalable ethical
[81:04] way? Just picture that for a second.
[81:06] What if that's where all of our time and
[81:08] our energy and our focus went? It's
[81:10] like, hey, let's get AI and Bitcoin
[81:13] right.
[81:16] Imagine that.
[81:19] You've got people like I
[81:21] I spend my day, so much of my day
[81:23] talking to investors. Well, I Jack, I
[81:25] don't I I'm I'm going to want to see the
[81:27] results of the Clarity Act. You want to
[81:29] see the results of the Clarity Act? What
[81:31] do you want? 3 and 1/2% interest on your
[81:33] dollars?
[81:35] Open a Marcus account.
[81:37] Who gives a [ __ ] about the Clarity Act?
[81:41] Well, you know, I track this index of
[81:44] Bitcoin, Ethereum, and Solana. God
[81:47] dammit.
[81:49] >> [sighs]
[81:49] >> It's just such an uphill battle.
[81:52] Unnecessary.
[81:53] We got enough problems, right?
[81:56] [ __ ]
[81:59] All of our kids are unemployed and like
[82:01] picking up guns.
[82:03] You want to go lobby President Trump
[82:05] about Dogecoin?
[82:08] Give me a [ __ ] break.
[82:12] All right, let's move on. You know what
[82:14] else really grinds my gears?
[82:17] When people clip old tweets of me in the
[82:21] internet thinks I just said it and get
[82:24] mad at me.
[82:26] You guys
[82:28] I didn't just say that. These clips are
[82:30] years old.
[82:33] [ __ ]
[82:35] Here's me just trying to have myself a
[82:38] weekend. I'm a Duke basketball fan. Duke
[82:40] is playing Michigan. The United States
[82:42] is playing for the gold medal hockey. I
[82:45] want to enjoy time with my girlfriend,
[82:47] watch some sports. My buddy's birthday
[82:49] was on Saturday, go to dinner. I open up
[82:52] my phone. Everyone's yelling at me.
[82:55] Everyone's always yelling at me. Why is
[82:57] everyone yelling at me? Oh, Jack, you
[82:59] said I didn't say that. I said that
[83:01] three [ __ ] years ago.
[83:04] You have these [ __ ] idiots.
[83:07] Like
[83:08] when I launched 21 and someone said,
[83:12] "How much Bitcoin do you want to buy at
[83:13] 21?" And my answer was, "I don't know.
[83:16] As much Bitcoin as we can possibly buy."
[83:18] That's everyone's logical answer, you
[83:21] [ __ ] What was I supposed to say? An
[83:23] actual number? Oh, now that you ask, we
[83:25] only want 122,931.37
[83:30] BTC. No more than that. What the [ __ ]
[83:32] Of course, everyone wants to own as much
[83:35] Bitcoin as they can possibly own. What
[83:36] type of stupid [ __ ] question is that?
[83:38] So, I give the only logical answer. I
[83:40] want to own as much Bitcoin as possible.
[83:42] And then you have these clip farming
[83:44] accounts on Twitter that just exist to
[83:47] get views and incite rage bait and
[83:49] they're tweeting videos of me from years
[83:52] ago
[83:53] and
[83:54] some of you idiots are out there that
[83:57] watch these clips every day and it's the
[83:59] same [ __ ] clips. They're tweeting the
[84:01] same clips and you're like, "Jack just
[84:03] was on TV saying they're going to buy
[84:04] all this Bitcoin even though 21 hasn't
[84:06] done shit." You [ __ ] idiot, I did not
[84:09] just say that.
[84:11] It drives me nuts and maybe some of
[84:14] these grinds my gears aren't relatable
[84:16] because some of you guys don't face this
[84:17] issue, but whatever. I don't care. This
[84:19] is my show. I don't give a [ __ ] It
[84:21] drives me nuts.
[84:23] If you guys like I said when when
[84:26] Bitcoin gets in a bear market, people
[84:28] get pissed at me. It's just
[84:30] I've said it before, it's the man in the
[84:32] arena, all right? It comes with the
[84:33] territory. It's much easier to blame
[84:37] this 31-year-old in the empty closet
[84:39] that you feel like you know and you know
[84:41] well enough to yell at and criticize and
[84:44] be mean to. It's much easier to blame me
[84:46] than it is to blame yourself. I get it
[84:49] and kind of grown on me a little bit
[84:51] over the years. In bear markets, you
[84:53] guys don't like my hair, you don't like
[84:55] my closet, you don't like my voice, you
[84:57] don't like the way I look, you don't
[84:58] like anything about me in bear markets,
[85:00] some of you. And it's it's kind of grown
[85:02] on me cuz we have this love-hate
[85:03] relationship. It's like, what's what's
[85:05] the what's the economic uh like in uh
[85:08] what's the economic um public figure
[85:11] version of sexual tension? It's like we
[85:12] got this tension going on. When things
[85:14] are bad, you hate my guts. When things
[85:16] are good, you want to take pictures.
[85:18] It's I kind of it's grown on me.
[85:20] But, like what the [ __ ] you guys?
[85:23] You're like
[85:25] It drive like people are posting like
[85:28] baby photos of me. Like, Jack just said
[85:30] It's like, I did not just say that. I
[85:33] did not say that. Whenever there's a
[85:35] video of me, especially when I look like
[85:38] 5 years younger.
[85:40] I mean, look at this video of me.
[85:44] I have a tan.
[85:48] I like a shaved head.
[85:51] And I look a decade younger.
[85:55] It kid drives me
[85:58] nuts. You've got these MicroStrategy
[86:00] shareholders that are like "Hey, idiot,
[86:03] you said you were going to buy Bitcoin.
[86:05] You didn't buy Bitcoin."
[86:07] I didn't just say that. I said that
[86:10] years ago,
[86:12] [ __ ]
[86:13] So, anyways, this guy posts this video
[86:16] where I say in it, "Anyone that
[86:18] understands Bitcoin doesn't take 1% of
[86:20] their portfolio and use it as a hedge."
[86:21] I still believe in that. If you actually
[86:23] understand Bitcoin, it's not 1% of your
[86:25] portfolio. You don't just dip your toe
[86:27] in. If you understand all this stuff,
[86:29] you buy some [ __ ] sats.
[86:32] And the internet went ape [ __ ] on me.
[86:34] Get a load of this [ __ ] [ __ ]
[86:36] Bitcoin's down 65%. Who's he to say that
[86:39] I didn't I said this 3 years ago, 2
[86:42] years ago. Whatever, [ __ ]
[86:45] God dammit. It pains me how stupid
[86:49] people are. It's like the same thing.
[86:51] It's the same group of people that I
[86:54] went off on last week that are telling
[86:55] me how to use my Bitcoin. Don't take out
[86:57] a loan. What are you doing? Shut the
[86:59] [ __ ] up. You got these people just doom
[87:03] scrolling Twitter all day. Bitcoin's
[87:05] having some red candles. Bitcoin's in a
[87:07] bear market. You got these angry
[87:09] [ __ ] doom scrolling Twitter all
[87:11] day just looking to get wound up and
[87:12] just pile on guys like me. [ __ ] off. I
[87:16] hate
[87:17] God dammit. I mean, I kind of love it. I
[87:19] have to admit. I kind of love it. I have
[87:21] a love-hate relationship with it.
[87:23] Sometimes, I'm like, do these idiots
[87:25] know that I did not just say that, that
[87:27] I said that like 5 years ago, that there
[87:30] are Twitter accounts that just post
[87:31] clips of me from like years ago?
[87:34] Um
[87:36] but then sometimes it cracks me up.
[87:38] Sometimes I get a kick out of it. So,
[87:40] anyway, that's what grow grind my gears.
[87:42] Uh and the last thing that uh
[87:44] grinds my gears this week is just
[87:45] Canada. Just like all of Canada. Like be
[87:50] better. And I'm half kidding, so I can
[87:53] already see the Canadians in the chat
[87:54] like, "Come on, man, that's so mean." Um
[87:57] come on. It's just a joke, but kind of.
[87:59] Like let's just admit it. Canada grinds
[88:02] all of our gears.
[88:03] And is it Hold on. Is it Justin Trudeau
[88:08] that is dating Katy Perry?
[88:12] Yeah, I mean, come on. So, Justin
[88:14] Trudeau tweets, "You can't take our
[88:17] country and you can't take our game."
[88:20] And then we whoop their ass and like
[88:22] he's out boating with Katy Perry. I
[88:25] mean, Canada's just the worst. I'm
[88:28] sorry. I I'm sorry because Strike's not
[88:31] in Canada yet and we want to be there.
[88:33] We want to serve everyone and I've
[88:35] actually been to Canada a few times and
[88:37] I don't hate Canada. I like Canada and
[88:39] Canada has some great Bitcoiners. Shout
[88:41] out Francis. Shout out Bull Bitcoin.
[88:43] Great Bitcoiners. I don't hate Canada,
[88:45] but come on.
[88:47] I mean
[88:50] you guys couldn't beat us in hockey
[88:52] and you've got Justin Trudeau
[88:55] just sounding like a giant wuss running
[88:58] around
[89:00] just um
[89:02] caking it with Katy Perry. Uh I Yeah, I
[89:06] don't know. Just a I'll say this. Just a
[89:08] tough tough scene for Canadians. Just a
[89:12] tough scene. It really is. I mean
[89:18] it's just got to be tough waking up
[89:20] Canadian
[89:22] today.
[89:24] Just a tough scene.
[89:27] I don't know what else to how else to
[89:28] put it. Just a tough scene for Canadians
[89:31] out there.
[89:32] Thoughts and prayers are with you guys.
[89:35] Um okay, strike.
[89:38] Uh
[89:39] I posted this on Nostr earlier.
[89:42] Um
[89:43] I think we got about a week or so, maybe
[89:47] a little more, uh till we start rolling
[89:49] out our line of credit externally. So,
[89:51] this is a screenshot of me on my phone
[89:53] setting up my line of credit.
[89:56] I just wanted to talk about the product
[89:57] again specifically because some people I
[90:00] posted this on Nostr and some people are
[90:02] like, "Look at this [ __ ] He's giving
[90:03] more people money to
[90:05] >> [laughter]
[90:07] >> Look at this dude. Look at this [ __ ]
[90:09] This guy, he's captured by the state and
[90:11] he's giving us all more ways to borrow
[90:13] against our Bitcoin and this is not what
[90:15] the godfathers of the Cypherpunks would
[90:17] ever wanted. I'm
[90:19] Okay, listen up, doofus.
[90:21] This is why the line of credit is cool.
[90:24] Okay?
[90:26] Right now, the only credit product in
[90:28] Bitcoin are these 12-month loans, okay?
[90:32] Which are fine and they serve their
[90:33] purpose. If you have a large tax bill, I
[90:36] had one of those and I got a 12-month
[90:38] loan on Strike. If you are getting
[90:40] married and you need to finance a
[90:41] wedding, you're buying a new house,
[90:43] you're starting a new business, you take
[90:45] out a large chunk of capital, you lock
[90:47] in the term for 12 months, so it's not a
[90:49] variable rate or anything, and you
[90:50] deploy that capital, you're able to plan
[90:52] ahead. You're going to say, "Hey, I want
[90:54] to finance my wedding collateralized by
[90:55] Bitcoin. I'm going to pay it back over
[90:57] this duration cuz I'm calculating my
[91:00] salary and I'm calculating what my bonus
[91:02] is going to be." And that that that
[91:03] works. But what it doesn't really do
[91:07] is it's not the best way to live on
[91:08] Bitcoin.
[91:10] The dream for me is I get my paycheck, I
[91:13] convert it into Bitcoin, I am able to
[91:16] live on Bitcoin without selling it
[91:19] and pay my bills. And so what the line
[91:21] of credit is is
[91:23] instead of taking out a large lump sum
[91:25] of capital at once
[91:28] and needing to use it for 12 months,
[91:31] you are just drawing the capital that
[91:34] you need when you need it. So, let me
[91:36] give you guys concrete example.
[91:38] Let's say I'm keeping 10 to 20% of my
[91:41] Bitcoin stack on Strike
[91:43] >> [clears throat]
[91:43] >> and I want to do live on that by
[91:45] borrowing against a little bit of it.
[91:48] But if I do 50% LTV loan
[91:51] and then Bitcoin goes through a bear
[91:52] market like it is and I got to go post
[91:54] more collateral, I risk a margin call,
[91:57] I'm I'm I'm borrowing a large lump sum
[91:59] of cash all at once, and that's what
[92:02] ends up stressing people out and getting
[92:03] people in trouble is they're like, "What
[92:04] if the price goes down? There's going to
[92:06] be a margin call. There's a chance I'm
[92:08] going to get liquidated. That's really
[92:10] it really makes me lose sleep. I'm I'm
[92:12] doing math. I'm doing numbers. I feel
[92:14] uncomfortable." And I understand that. I
[92:16] genuinely understand that and I'm not
[92:17] trying to put anyone in that position.
[92:20] And so I came up with this idea for the
[92:22] line of credit because it actually suits
[92:25] my use case, my predominant use case. I
[92:27] do have large tax bills and one-off
[92:28] expenses every now and then, but my
[92:30] predominant use case is
[92:33] what I want is I have, you know, like I
[92:36] said, let's say some small fraction of
[92:38] my Bitcoin stack on Strike.
[92:41] And I have bill pay hooked up on Strike.
[92:44] And the line of credit is just a payment
[92:46] method. So, when a bill comes in that
[92:48] Strike is going to pay cuz I have it all
[92:50] hooked up, Strike has an account and a
[92:51] routing number,
[92:53] when a when a bill comes in,
[92:56] I say I want my line of credit to pay
[92:57] that bill.
[92:59] And so what Strike does is it takes it
[93:01] borrows a little bit of of credit
[93:03] against my stack of Bitcoin and pays the
[93:05] bill for me. So, let's say I'm making
[93:07] numbers up. Let's say my credit card is
[93:10] $5,000 a month, my mortgage is $2,500 a
[93:13] month,
[93:14] and my uh ComEd bill is
[93:17] uh $50 a month, and my HOA is $100 a
[93:20] month. So, I'm so I'm looking at around
[93:22] $8,000 of monthly expenses, okay? Let's
[93:25] say that.
[93:26] So, Strike would pay those for me
[93:28] against my line of credit. So, then at
[93:30] the end of the month when I've paid all
[93:31] the bills, I don't have 50% LTV in this
[93:34] giant loan that I need to manage and if
[93:37] Bitcoin's price goes down, I'm risk of
[93:39] margin call, I got to add more
[93:40] collateral, I'm sweating about
[93:41] liquidation.
[93:43] Instead, my LTV is like 1%
[93:46] because my LTV is only big as my monthly
[93:48] expenses.
[93:50] And I mean, hopefully you guys aren't
[93:51] spending 50% of your net worth every
[93:54] month,
[93:55] right?
[93:56] And then I have direct deposit set up on
[93:58] Strike and my direct deposit comes in
[94:00] and I can decide, well, I want 50% of my
[94:02] direct deposit to go towards paying down
[94:04] my line of credit. I want the other 50%
[94:06] to buy Bitcoin. Or I want all all of my
[94:08] direct deposit to go towards paying down
[94:09] my line of credit. But then I'm able to,
[94:12] hey, Bitcoin's down. Bitcoin's dipping.
[94:14] I'm going to allow my line of credit to
[94:16] grow to 10% LTV. Or I'm going to allow
[94:18] my line of credit But that way, 1%, 5%,
[94:21] 10% LTV, you're nowhere near risk of
[94:24] liquidation. It's much healthier
[94:26] environment for you. And it's a much
[94:28] easier way to live your life on Bitcoin.
[94:30] You don't want a 12-month loan. You want
[94:32] a dynamic forever rolling line of credit
[94:35] against a stash of Bitcoin. You've got
[94:37] your direct deposit hooked up, which
[94:39] allows you to finance the stuff in real
[94:41] time, and you've got bill pay hooked up,
[94:43] so you just spend on credit cards, hook
[94:45] your bill pay up to your mortgage, your
[94:46] HOA, your ComEd, your electricity, your
[94:48] credit card, all the stuff that you
[94:50] need, and you live your life on this
[94:52] evolving line of credit that, you know,
[94:54] when they print the money, Bitcoin's
[94:56] going to explode.
[94:57] And so these are the tools that allow me
[94:59] to own more Bitcoin than I otherwise
[95:02] would cuz I'm stacking more Bitcoin than
[95:04] I otherwise would and I'm not selling as
[95:05] much Bitcoin as I'd otherwise have to
[95:07] living on zero.
[95:09] It's it's a life hack. Like Strike is
[95:12] like a an a a bank account from the
[95:14] future.
[95:16] And so I'm really excited about this. I
[95:17] want you guys to be able to ask
[95:19] questions cuz the other thing is I don't
[95:20] think there's been a lot of
[95:22] innovation in the Bitcoin credit space.
[95:25] Like everyone that offers Bitcoin back
[95:27] loans just does the same 12%. And a lot
[95:30] of our pricing is similar. You know,
[95:32] we've tried to innovate and be like,
[95:33] "Okay, well, let's do unique
[95:35] liquidations."
[95:37] Where our liquidation is not going to
[95:40] we're not going to liquidate your whole
[95:41] position at once. We're only going to
[95:42] liquidate tiny little bits if we
[95:44] absolutely have to to get you back into
[95:46] a healthy state cuz we want the price to
[95:48] eventually recover and we want you to
[95:49] have as much Bitcoin as possible. So,
[95:51] there's a little tiny innovation, but I
[95:54] consider this line of credit a massive
[95:56] innovation cuz you don't have to take
[95:58] out a large 12-month loan. You can
[96:00] operate under these tiny bite-size lines
[96:03] of credit, which are really really
[96:05] useful to maximizing the Bitcoin you own
[96:08] in living your life saving in Bitcoin. I
[96:11] think the future we're moving towards is
[96:13] you save in Bitcoin and you're going to
[96:15] have to spend in fiat because we're not
[96:17] on a Bitcoin standard yet. And this is
[96:19] an incredibly powerful tool. This is
[96:21] like life on steroids. And then, you
[96:23] know, things like uh
[96:26] liquidation-proof loans, which we should
[96:28] be coming out with in Q2. So, we'll have
[96:31] a loan. It's going to cost you more
[96:33] cuz, you know, obviously it's a lot more
[96:35] work for us to provide for you, but
[96:38] we'll offer you a loan where there's no
[96:40] such thing as liquidation
[96:42] at all.
[96:43] So, we're going to come out with more
[96:45] and more and more and more innovative
[96:46] stuff. Really really excited about it.
[96:48] Really excited about it. Um so, anyways,
[96:51] if you guys have questions about this,
[96:53] um I'd be really curious to know because
[96:56] I'm going to start recording all the
[96:57] content and writing the blog posts and
[96:58] stuff um to promote it. And uh I'm kind
[97:02] of curious. Like does it make sense to
[97:03] you guys? Do you understand it? What
[97:04] would be useful? Do you want to see a
[97:06] tutorial of how I use it and how I live
[97:08] my life or just like let me know what
[97:11] you guys think and what would be the
[97:12] most useful here for you.
[97:15] Um and then 21,
[97:16] uh I know many of you are going to hate
[97:18] it, uh
[97:20] but we're we're working on announcing
[97:23] stuff.
[97:25] It's difficult. I mean, in the public
[97:26] markets it's difficult. Obviously,
[97:28] listen, here like what I'll say is like
[97:30] obviously if I could rewind time, I'd do
[97:31] so much differently. There's no doubt
[97:33] about that and I own that entirely. I
[97:35] mean,
[97:36] here something else I'll say.
[97:38] People that it's I find it interesting
[97:41] that there are entrepreneurs out there
[97:43] and CEOs out there that try and take
[97:45] shots at me and I get it because a lot
[97:47] of people's marketing strategies are to
[97:49] convince everyone that I'm a bad person
[97:51] or that I'm a criminal or that my
[97:53] products suck. It's like that's
[97:54] literally their marketing strategy is be
[97:56] like, "Use us because Strike is this,
[97:58] this, and this." Or because Jack is
[97:59] this, this, and this. And so that's how
[98:01] they market their products.
[98:03] But building stuff is hard
[98:06] and like there's a lot of entrepreneurs
[98:07] and CEOs out there that know that. Um
[98:10] and so yes, like if we did not do this
[98:14] order of operations perfect, there's no
[98:16] doubt about that. If I could rewind
[98:17] time, I would have done a lot
[98:18] differently. Um but I mean, I stand 10
[98:21] toes down in like
[98:23] there is no equity at this price level
[98:28] I'd rather own. I am I am balls deep in
[98:32] in what we're building. I mean, we're
[98:33] trading at like a 27% discount to the
[98:36] Bitcoin on our balance sheet, which
[98:38] doesn't make any sense. You've got
[98:39] myself, Tether, and SoftBank and over
[98:41] 43,000 Bitcoin and it's trading as if
[98:44] Bitcoin's 47K, which whatever. I mean,
[98:47] hey,
[98:48] I would love to announce stuff we're
[98:51] working on and then buy our own stock
[98:53] back. I mean, I would be buying our own
[98:55] stock personally if I was allowed to.
[98:57] I'm not allowed to right now. So,
[99:00] I mean, if you guys want to keep it this
[99:02] low, that's fine. Um I'm a buyer when
[99:04] I'm allowed to be a buyer. But yeah, I
[99:07] mean, when you put Tether, SoftBank, and
[99:08] I all on the same team,
[99:11] um and you guys know how we feel about
[99:13] the market and Bitcoin treasury
[99:15] companies and stuff. Bitcoin treasury
[99:17] companies are fine. They can exist and
[99:19] we'll see how well they do. Um, we
[99:21] believe in having a Bitcoin treasury,
[99:24] one of the biggest in the world, and an
[99:25] incredible Bitcoin company. And so,
[99:28] yeah, operating in the public markets is
[99:29] tough, man. I've learned a lot. Um, but,
[99:31] uh,
[99:33] uh, green pastures ahead. Skies are
[99:34] blue. I'm pumped. I really am. Um, and I
[99:37] I I I'm at the point where I've, you
[99:39] know, I've taken such a beating
[99:41] that, uh, like, you can't hurt me
[99:43] anymore. Can't like, you keep throwing
[99:46] punches and you're like, man, this guy's
[99:47] not flinching anymore. You guys can see
[99:50] I mean I I I I read every troll. I
[99:52] bookmark them all. Um,
[99:55] I like I said, I'm a psychopath. It just
[99:57] it gets me going. It really drives me.
[99:59] I'm a psycho.
[100:01] And, uh, I'm just very excited for, uh,
[100:04] what we got cooking. That's all I can
[100:05] say, though. And for some of you that's
[100:07] frustrating,
[100:08] sorry. I'm just following the rules.
[100:11] All right, let's do some Q&A. Longer
[100:13] episode, but, um, I don't know. You guys
[100:17] asked for the longer episodes.
[100:19] So,
[100:20] uh,
[100:23] so, um,
[100:27] that's what you get. You want long
[100:29] episodes, you get long episodes.
[100:32] Okay, let's see here.
[100:36] Oh, supposed to blow my face up.
[100:42] Look at those blue eyes. Ladies, pause.
[100:46] I'm taken now.
[100:48] But, these are
[100:50] Fiji blue water.
[100:55] I mean,
[100:58] sheesh.
[101:00] Blue-eyed bandit.
[101:03] I'm just kidding.
[101:04] Uh,
[101:05] I'm going to get roasted for that on the
[101:08] internet. They'll be like, this guy's
[101:09] talking about his eyes. Meanwhile, have
[101:11] you seen his stock price?
[101:13] >> [laughter]
[101:15] >> Shut the [ __ ] up.
[101:17] All right, why should we work for
[101:20] something another man can create for
[101:22] free?
[101:25] I have a feeling that's not a legitimate
[101:26] question. You're just paraphrasing my
[101:28] quote. Agree.
[101:30] Next. Question for Jack, please, Dylan.
[101:33] If AI destroys wage leverage faster than
[101:36] governments can inflate it away, does
[101:38] Bitcoin become wage insurance?
[101:40] Yeah, I mean, we're going to have to
[101:42] wait and see how Bitcoin does. I mean,
[101:44] let's say Bitcoin just repeats its COVID
[101:46] performance.
[101:48] It is a leading indicator. It sniffed
[101:50] out COVID and how bad it really was and
[101:53] then it was the best performer on the
[101:54] other side of the big print. If it just
[101:56] repeats that, what's happening right
[101:58] now? So, you're looking at indicators
[102:00] like the RSI, um, certain cohorts of
[102:02] Bitcoin holders capitulating and
[102:04] selling. It's all looking like the 2020
[102:07] crash. It's all, you know, this price
[102:10] level is severe capitulation, oversold
[102:13] metrics. And
[102:15] Bitcoin is clearly sniffing out some
[102:18] credit crunch, some concern.
[102:20] And then if they print a lot of money,
[102:22] which presumably they would unless they
[102:23] want the entire system in America as we
[102:25] know it to collapse,
[102:27] then Bitcoin's going to be the best
[102:28] performer. Something that I'm interested
[102:30] in is this time,
[102:32] what's different about this time is this
[102:34] time the American stock market is under
[102:35] a lot of pressure. I mean, the US has
[102:38] written papers on how they want capital
[102:40] to leave America. They want capital
[102:42] flight. They want stronger foreign
[102:44] markets and a weaker
[102:46] dollar, right? And so, I'm curious to
[102:49] see if this is the cycle where Bitcoin
[102:51] starts to separate from its correlation
[102:54] to the Nasdaq. We'll see. Cuz if AI is
[102:57] here to, at least for now, destroy the
[103:00] multiple on software, destroy the
[103:02] multiple on Big Tech and the Mac 7,
[103:05] then maybe Bitcoin actually finally
[103:07] starts to trade as its own unique asset.
[103:11] But, we'll have to see. The proof will
[103:13] be in the pudding. Um,
[103:14] one day that will happen is my
[103:16] assumption. Is that Is it time? I don't
[103:20] know. Maybe it It might be cuz you're
[103:22] seeing lots of endowments, lots of
[103:23] sovereigns. You're seeing the, um,
[103:26] ETF disclosures look really good. I
[103:28] mean, a lot of huge capital is adding to
[103:31] their positions, um, as the price comes
[103:33] down. So, the ETFs are not puking
[103:36] Bitcoin. They're not capitulating. All
[103:38] this large smart money is just buying
[103:40] more. Individuals are owning less
[103:43] Bitcoin, believe it or not.
[103:44] Corporations, government, I mean,
[103:46] everyone with large capital pools are
[103:48] acquiring. So, maybe Bitcoin starts
[103:50] behaving more like gold slowly and
[103:53] starts to diverge from the Nasdaq.
[103:55] But, we'll see. We'll see.
[103:58] Um,
[103:59] question for Dylan and Jack, since
[104:01] Bitcoin rises with inflation, how do you
[104:03] see the deflationary pressures of AI
[104:05] impacting the Bitcoin price?
[104:07] Yeah, so I kind of talked about this.
[104:10] Deflation will initially harm Bitcoin
[104:13] because
[104:15] it's hard on credit.
[104:18] And what we're seeing it So, it will be
[104:21] harmful. It's, but by the way, in a
[104:23] deflationary crisis, everything sells
[104:25] off. If we go through like a true
[104:27] deflationary crisis and we have a day, a
[104:30] week, a month of extreme bond
[104:32] volatility, the VIX spikes, um, credit
[104:36] credit spreads go haywire. If we see
[104:39] that and we legitimately see that, by
[104:41] the way, gold, too, will sell off like
[104:43] crazy. Everything will sell off. It's a
[104:46] sell-everything, hunker down, get in
[104:48] your bunker.
[104:50] And then, you know, things like gold and
[104:52] Bitcoin should in theory rally. So,
[104:55] nothing is immune, by the way, just to
[104:57] be clear. A crisis is a crisis. There's
[104:59] no safe place to hide. Pain is pain.
[105:02] You're going to have to feel it. No one
[105:04] gets out scot-free.
[105:06] So, what, you know, Bitcoin's bear
[105:08] market so far and the pain it's felt
[105:10] since October 10th or whatever,
[105:13] um, it's
[105:14] it's probably because there's a credit
[105:17] crisis brewing.
[105:18] Delinquencies are up. Joblessness is up.
[105:21] White collar's getting hammered. Um, the
[105:24] youth is getting hammered. Uh,
[105:27] yeah, it's not good. I mean, stock
[105:29] market now is getting hammered.
[105:32] Um,
[105:33] do you think AI agents will start using
[105:35] Bitcoin to manage financial tasks? I
[105:37] doubt traditional finance will work well
[105:40] on such a digital use case.
[105:43] Um,
[105:44] yeah, I would assume Bitcoin is the
[105:46] money of the future. But, I think that
[105:48] for a variety of reasons. I'm not like
[105:50] hyper sold on this narrative. I think
[105:52] people are pushing this narrative
[105:54] because
[105:55] I think they're pushing the narrative
[105:56] for the wrong reasons. Like, I think
[105:58] they're pushing the narrative because
[106:00] they feel like,
[106:02] uh, mainstream media and the legacy
[106:06] financial system is going to eat it up.
[106:08] Like, they're they're tweeting like,
[106:09] imagine what currency Claude bot is
[106:12] planning on using.
[106:14] Nobody like, come on, guys. Like, nobody
[106:17] actually gives a [ __ ] Like, if your
[106:18] Claude bot is like sending each other
[106:20] micro payments. For what? For [ __ ]
[106:22] posting? Like, for deleting all of your
[106:24] [ __ ] hardware
[106:25] uh, data? Like, I
[106:28] I don't know. I Yeah, obviously, yes. I
[106:31] think in a future where AI agents need
[106:34] to transact, they will use Bitcoin
[106:36] because
[106:37] they don't need permission. How would an
[106:39] AI agent sign up for Strike? Sign up for
[106:42] a bank account? Like, it's impossible.
[106:44] Um, I don't They can't use JP Morgan
[106:47] Chase. They can't use like So, they will
[106:50] need programmable money and and most
[106:52] importantly, they will need money where
[106:54] they don't need permission.
[106:56] People say, oh, they'll use stable
[106:57] coins. Will they, though?
[107:00] Because what if there are AI agents that
[107:02] are doing all sorts of AI [ __ ] for kitty
[107:04] porn?
[107:07] Are stable coins going to be used for
[107:08] that use case, too?
[107:10] So, AI like, stable coins, just to be
[107:12] clear, guys, you guys need to know this.
[107:13] You need permission to use stable coins.
[107:18] Case you didn't know that. There's a lot
[107:19] of things people don't know about stable
[107:21] coins. Like, they didn't invent yield on
[107:23] cash.
[107:24] And they also
[107:26] like, they are permissioned money.
[107:28] They're just different versions of
[107:29] dollars.
[107:30] So, when people say like,
[107:32] AI agents won't use Bitcoin, they'll use
[107:34] stable coins.
[107:35] Uh, okay. We'll see how well that goes.
[107:37] Until USDC sanctions a bunch of AI
[107:40] agents.
[107:42] Um, whatever. Anyways. Uh, but my point
[107:45] is,
[107:47] I'm I'm far more interested in all of
[107:51] the macro stuff and that they have to
[107:53] print so much money and that Bitcoin is
[107:55] this finite supply asset for an ungodly
[107:58] amount of capital and that there is an
[108:00] entire generation that is demoralized
[108:03] and hopeless and that we have an
[108:05] opportunity to like build a better
[108:06] future that we actually believe in.
[108:09] The AI agent stuff will come, but I
[108:11] think it's similar to a lot of the early
[108:13] lightning network stuff I got caught in
[108:15] where I was really excited to integrate
[108:17] it into all the retail stores and, you
[108:19] know, disrupt Visa. And I was early. And
[108:23] I think we're going to find ourselves to
[108:25] be early to AI agents adopting Bitcoin
[108:27] in like a major, major, major way. But,
[108:29] we'll see. Hopefully, I'm wrong. I hope
[108:31] I'm wrong.
[108:33] What narrative is left after digital
[108:35] gold?
[108:38] I
[108:40] I don't know. I mean, I'm a narrative
[108:42] guy, I guess, because I go on TV and I
[108:45] talk about Bitcoin and they're always
[108:47] into the narratives. And so, I kind of
[108:48] have to play the narrative game.
[108:50] But, you know, to be candid with you
[108:52] guys, I'm not a narrative guy.
[108:55] I think it's really simple. Moneys
[108:56] compete.
[108:58] You contribute time, energy, effort,
[109:01] labor. You got to store it somewhere.
[109:03] Where's the best place to store it? And
[109:05] that's not like a
[109:07] opinionated That's not like a well, my
[109:09] favorite color is blue and your favorite
[109:10] color is yellow and his favorite color
[109:12] is green. That's not It's a well, which
[109:14] one's scarcer? Which one's easier to
[109:16] store? Which one's easier to transfer?
[109:18] Which one's more divisible? What like
[109:20] Bitcoin is just pound for pound the best
[109:22] money, period. And like candidly,
[109:25] that's all that matters.
[109:28] It doesn't really matter.
[109:29] Now, what narratives are going to be
[109:32] adopted by people?
[109:34] I don't know.
[109:36] Sure. You want You want Bitcoin to be
[109:38] the money for AI agents? Whatever. Fine.
[109:42] Is that how it becomes a $30 trillion
[109:43] asset? No.
[109:45] It becomes a $30 trillion asset cuz it's
[109:47] the scarcest thing that we've ever come
[109:50] across as a species, period. The only
[109:53] thing as finite as Bitcoin is life
[109:54] itself.
[109:58] That's what That's the only thing that
[109:59] matters in regards to the price.
[110:03] Price of anything is very simply put
[110:04] supply demand. If the supply can't move,
[110:09] So, anyway, I don't know I'm not a
[110:11] narrative guy. I'm not like one of these
[110:12] guys that's like ooh, let me spend all
[110:14] day thinking about some story that
[110:18] everyone will believe.
[110:22] I don't know.
[110:23] I mean, don't get me wrong. When I go on
[110:25] CNBC and and they want to talk to me
[110:27] about narrative, they're going to ask me
[110:28] about quantum, all this [ __ ] I'm
[110:31] happy to play the part to, you know,
[110:33] hopefully move the needle in the
[110:34] direction it needs to go.
[110:40] It's the best thing you can own.
[110:43] Period. And if it's too volatile for you
[110:45] now, then you're not going to get the
[110:46] returns it has now.
[110:48] Its returns will go down over time cuz
[110:50] volatility will go down over time. So,
[110:51] if you can't take the heat, stay out of
[110:52] the kitchen. You can't take the
[110:54] volatility, you don't get the returns.
[110:57] Eventually, everyone will own Bitcoin.
[110:59] Will that be within my lifetime? I'm not
[111:01] sure, but I don't know. It's just the
[111:03] best money. It's just It's as simple as
[111:05] that.
[111:06] You said Bitcoin back loans in Europe
[111:08] would have a 10K minimum, but in
[111:09] Portugal it's still 75K. Will that limit
[111:12] drop soon? When you launch a BTC line of
[111:15] credit, will Portugal be included in the
[111:16] rollout? Um
[111:19] Not all of our European countries have
[111:22] 10K. Unfortunately, Portugal is
[111:24] obviously one of the ones that did not
[111:26] get the 10K.
[111:28] It's just difficult, man. It's
[111:29] regulations.
[111:31] It kills me. I wish everything I built I
[111:33] could just give to whoever wanted it.
[111:35] Imagine that world. Imagine a world
[111:37] where [ __ ] like I can just build stuff
[111:40] and whoever wants to use it could use
[111:41] it.
[111:42] Instead, I'm I
[111:44] like you got I got to get permission to
[111:46] take a piss. It's crazy. I mean, in the
[111:49] public markets, who knows? I'm going to
[111:51] end up They're going to end up needing
[111:53] like my blood panel.
[111:55] It's crazy. Um
[111:57] So, yeah, I'm sorry about that. The
[111:59] Portugal regulators and regulations are
[112:00] different and it doesn't mean we're not
[112:02] working on it. It's safe to say that if
[112:04] I don't serve you as a customer today,
[112:06] I'm working on it. Whether that's
[112:07] limits, opening an account, lending, um
[112:11] so
[112:13] we're working on it. Um I'm sorry about
[112:16] that. And the line of credit uh is going
[112:18] to be US first, but we're going to try
[112:21] and get it same as all of our other
[112:23] products. We We We try and start small,
[112:26] do some testing, ensure that the product
[112:28] quality is high. We don't want to launch
[112:30] something that gives people issues. It's
[112:33] not worth it. Um low time preference.
[112:36] So, we'll launch it uh in a few select
[112:38] US states starting next week, probably.
[112:41] And then we'll go from there. And our
[112:44] goal will be to get it to, of course,
[112:45] Europe and the rest of the world as fast
[112:47] as possible.
[112:48] Question, hey Jack, when ca- when can we
[112:51] expect to have yield on cash account
[112:53] available? I'm so ready to dump my
[112:55] savings account.
[112:57] Uh no timeline at the moment, but it's a
[112:59] top priority, super top priority. It's a
[113:01] little bit more complicated than you'd
[113:03] think, so it's taking us a little bit
[113:06] more work um to get it to a place where
[113:09] we can start to have a timeline and
[113:11] tease it a little bit more.
[113:13] But it's coming.
[113:14] Um
[113:15] hopefully within the coming months. It's
[113:18] certainly not like a at the end of this
[113:19] year. Now, no promises, obviously,
[113:22] there's only so much I can control, but
[113:24] from what I can tell and the progress
[113:25] we've made already, um it should be it
[113:28] should be fairly soonish.
[113:31] Fairly soonish.
[113:33] Um
[113:34] Question for Jack, why for Bitcoin back
[113:37] line of credit would there be minimums
[113:39] when it's secured by money? There's
[113:41] platforms like Lava. Well, Lava's not
[113:44] legal. They're not doing legal things.
[113:47] Um
[113:50] Yeah, I mean, listen.
[113:54] It's hard to be compared to
[113:58] other companies that aren't
[114:01] following the rules.
[114:04] Like part of Strike in being
[114:08] one of the most trusted and best Bitcoin
[114:11] financial services in the world
[114:14] is that we follow the rules. We're not
[114:16] going to get you and us in trouble.
[114:20] Nobody wants that. And so
[114:25] can't speak for other companies, but we
[114:26] follow the rules.
[114:30] Um
[114:32] the line of credit minimum, by the way,
[114:34] will be really low.
[114:36] Like
[114:37] thousands of dollars.
[114:39] Couple grand, five grand, something like
[114:41] that.
[114:43] But there are rules, unfortunately.
[114:46] And there are companies that don't
[114:47] follow the rules, but the problem is
[114:48] eventually you get caught and breaking
[114:51] the rules is not like a scalable
[114:53] business model.
[114:54] Uh um
[114:55] So, you know,
[114:57] we're very regulated and licensed and I
[115:00] know people will say, oh, you KYC cuck.
[115:04] >> [laughter]
[115:04] >> But I mean, what do you want me to do? I
[115:07] can't change the world from a prison
[115:08] cell.
[115:10] I can't I can't build you guys products
[115:12] and and have fun on this show sitting
[115:14] behind bars.
[115:16] So, I got to follow the rules.
[115:18] And uh I can I can only make progress
[115:21] moving the world in what I think is the
[115:23] right direction
[115:24] um by following the rules. So,
[115:28] yeah, that's all I'll say.
[115:31] Um Dylan, will Strike be offering
[115:33] checking and savings accounts with
[115:34] debit/credit cards? Bitcoin businesses
[115:36] don't have a Bitcoin bank option to run
[115:38] these services. Businesses need access
[115:40] to these services. Uh eventually, we
[115:43] will. It's not something we're actively
[115:46] focused on at the moment. And one of the
[115:49] primary reasons for that is because we
[115:54] I don't know. I just don't know that you
[115:55] guys need a card from us yet. We'll see.
[115:59] But with the line of credit, like if you
[116:00] have an Amex card, you're probably
[116:02] getting all these amazing rewards.
[116:04] I don't know. Do you
[116:06] um
[116:07] do you need
[116:09] a card from us?
[116:11] Use your Amex. Just use your line of
[116:13] credit to pay off the Amex. So, you've
[116:15] got direct deposit, you can pay bills,
[116:16] you can buy/sell Bitcoin, you got line
[116:18] of credit, termed loans.
[116:20] You're good You should be good. We'll
[116:22] see though. Like you guys will use the
[116:24] service and then if if it's not giving
[116:26] you what you need, we'll build whatever
[116:27] you want, but I'm curious to see if
[116:30] people use it correctly. I don't think
[116:31] you need a card from us. I don't know
[116:33] why
[116:34] I don't know. A card is such a fiat
[116:36] product. Um I'll build it if I have to.
[116:39] But still still want feedback from you
[116:41] guys on that one. I'm not sold.
[116:44] Uh Jack, simple question. Does Strike
[116:46] run its money transfer transactions
[116:48] primarily on Tether or Bitcoin?
[116:51] Uh Bitcoin?
[116:53] We don't run anything on Tether.
[116:55] I mean, we we support USDT in our
[116:58] in the the version of Strike. So, you
[117:01] guys that are using Strike in America
[117:03] and UK and EU, you're using Strike that
[117:07] has support for either the dollar or the
[117:09] euro or the pound, wherever you are,
[117:10] your jurisdiction.
[117:12] Strike in Latin America and in Africa,
[117:15] uh instead of their local currency, it
[117:18] has Tether because people in Nigeria,
[117:21] they don't want
[117:23] Naira. They want USDT.
[117:26] So, we support USDT like that.
[117:29] But our money transfers, like our send
[117:31] globally product, our cross currency
[117:33] stuff, it's all on Bitcoin.
[117:35] Now, people try and lie about me
[117:38] all the time. Um and I I know that
[117:40] that's a frequent lie. Like Jack Jack's
[117:43] friends with Tether and he's secretly
[117:44] running his company on Tether.
[117:47] I'm not.
[117:50] Uh question, when will Michigan be
[117:52] available for the line of credit product
[117:54] that you'll launch?
[117:55] Uh
[117:57] Michigan will not be one of the first
[117:58] states,
[118:00] but it could be weeks after It could be
[118:03] whenever we want.
[118:04] We're going to roll it out
[118:06] semi-selectively
[118:08] and just see how it goes first.
[118:11] Cuz I'm not sure people understand it.
[118:13] I'm really curious how people are going
[118:14] to use it. I want to make sure it's it's
[118:17] an unbelievable experience like the one
[118:19] that I've been bragging about.
[118:21] And then I'm just going to flip the
[118:22] switch, turn it on everywhere.
[118:24] So,
[118:25] there's no like explicit timeline.
[118:27] There's no rules about that. That's a
[118:28] subjective decision I'm making.
[118:30] Which is we want to roll it out the
[118:32] right way, low time preference. You guys
[118:34] are going to kick my ass cuz there's
[118:36] going to be people on Twitter that are
[118:37] like, holy [ __ ] my life's changed. I
[118:39] get this line of credit. This is like
[118:41] This is such a unique Bitcoin product.
[118:43] I'm so excited about it. And
[118:46] people are going to be tweeting about it
[118:47] and then some people aren't going to
[118:48] have access to it and I'm going to get
[118:49] my ass handed to me. People are going to
[118:50] be like, hey, turn it on for me. [ __ ]
[118:53] you.
[118:54] But I think I trust me, I think it's the
[118:55] right thing to do. You just never want
[118:57] to do a black It's a totally new
[118:59] product. It's a first of its kind. You
[119:01] don't want to blast it out to everybody.
[119:04] Um all at once, at least in my opinion.
[119:07] When is Strike coming to Canada? We are
[119:09] working on Canada. It's just brutal,
[119:11] man. Canada grinds my gears. Um the
[119:14] regulatory environment over there is
[119:16] painful. So, it's going to take us time,
[119:19] unfortunately. But, we're working on it.
[119:22] Strike question, Dylan. Please update us
[119:24] on UK personal loans. Also, is Jersey
[119:27] Channel Island counted within UK or is a
[119:31] separate domicile?
[119:33] Um I don't have an update for UK
[119:34] personal loans for you on this Mailbag
[119:37] Monday.
[119:39] I don't know what Jersey Channel is.
[119:43] Maybe if you write into support or DM us
[119:46] or something, we'll get back to you on
[119:47] the specifics there. Is that like a
[119:49] region of the
[119:50] I don't know what that is.
[119:53] Sorry, but we're we're working on the
[119:55] personal loans in the UK as well. We we
[119:57] are. Um that one's more straightforward
[119:59] than Canada. We'll we'll get there.
[120:01] Dylan, will Strike be offering business
[120:03] solutions for Bitcoin businesses? We
[120:05] don't want to use TradFi bank for
[120:07] checking. We want to use a Bitcoin bank.
[120:10] So, we do offer these products for
[120:13] businesses. So, we have bill pay for
[120:15] businesses.
[120:16] We have lending for businesses. We'll
[120:18] have line of credit for businesses. So,
[120:20] you get an account and routing number
[120:22] with Strike. You can wire money in. You
[120:24] can send money out. You can pay bills. I
[120:27] think our line of credit for businesses
[120:28] is going to be massive.
[120:30] Imagine if you're a Bitcoin miner.
[120:33] You have bills to pay. You're mining
[120:34] Bitcoin. You need to pay your
[120:36] electricity bill. You might not want to
[120:37] sell your Bitcoin at the lows right now.
[120:40] Just hook up your bill pay to the bills
[120:43] that you got to cover for your mining
[120:45] services, collateralize it against the
[120:46] sats on your balance sheet, and uh
[120:49] handle your bills that way. It's like an
[120:51] absolute game changer.
[120:53] Huge.
[120:54] So,
[120:56] yeah, I don't know um
[120:58] what the confusion is here, but we
[121:01] support businesses.
[121:03] If you're a business and you want to
[121:04] talk to us or you need any help, just
[121:06] reach out. I mean, we've onboarded
[121:08] thousands and thousands of businesses
[121:09] all over the world. And our business
[121:12] product is actually growing a lot, um
[121:15] which is exciting. I think the line of
[121:16] credit is going to be huge, too. If I'm
[121:18] a business I mean, Strike the business
[121:20] uses its uses line of credit, too. Like,
[121:23] let's say we need a license in Canada,
[121:25] and it's a million dollars.
[121:27] Okay, we have over 1,500 Bitcoin on our
[121:29] balance sheet, which is What is that
[121:32] right now?
[121:33] It's a lot less than it was in October,
[121:34] I'll tell you that much.
[121:37] So,
[121:38] that's a hundred million dollar We have
[121:40] a hundred million dollars of Bitcoin on
[121:41] our balance sheet.
[121:42] Would I use a line of credit to get a
[121:44] million dollar license or would I sell
[121:46] Bitcoin off our treasury or take the
[121:49] profits? So, we're let's say we're
[121:50] making millions of dollars a month.
[121:52] Would I take some of that and pay for
[121:54] the license? Maybe, but I might just
[121:55] take that, buy the dip, and have an LTV
[121:59] of like 1% getting the license in Canada
[122:01] with the line of credit, and then I'd
[122:03] pay down that million dollar line of
[122:06] credit over the next 12 months. So, I'm
[122:08] taking maybe a hundred grand a month of
[122:09] our profits and allocating it and paying
[122:11] it down. But, in that way, I'm allowing
[122:13] myself to buy the dip. It's just like
[122:15] the line of credit's just a beast.
[122:17] I think businesses are going to love it.
[122:19] I think Bitcoin miners are going to love
[122:20] it.
[122:21] Um
[122:23] if my state is slow to allow lending,
[122:25] Washington, would you expect it to be
[122:27] slow to approve the line of credit? No.
[122:32] No.
[122:35] We'll get you.
[122:36] No. Shouldn't be.
[122:38] Hey Jack, question for Strike. I see an
[122:40] extra layer PIN protection before
[122:42] hitting send or withdraw. It would be
[122:44] nice to have that layer so that I can
[122:46] send larger UTXO to cold storage.
[122:54] What do you mean by that?
[122:56] So, we do have that feature.
[122:59] Well, I can't tell the I can't tell what
[123:01] the question is. We So, you see the
[123:03] feature. I see an extra layer PIN
[123:05] protection. Yeah, so we have this
[123:07] feature where if you guys want extra
[123:09] security on your account, you can do it
[123:12] where you need to enter the PIN or do
[123:16] some form of authentication to send
[123:18] Bitcoin off the app, if you want. If you
[123:21] want that level of security, we have
[123:23] that.
[123:26] So, if you need that, you can just turn
[123:28] it on in your settings.
[123:32] Okay. Um
[123:34] last question, other.
[123:37] Am I a cat guy,
[123:38] a dog guy, or neither?
[123:41] We all know you're a bear guy.
[123:44] I'm not a cat guy.
[123:46] I'm allergic to cats or
[123:49] I don't know.
[123:51] At least I was when I was a kid. Like,
[123:54] my eyes get all irritated and and stuff.
[123:57] So, I'm definitely not a cat guy.
[124:00] Am I a dog guy?
[124:02] Yeah. Humans are dog guys. They just the
[124:05] man's best friend, right? There's no
[124:06] doubt about that.
[124:08] But, I had a bad experience with a dog.
[124:11] It was actually with Dylan.
[124:12] I'm going to rag on Dylan a little bit.
[124:14] It's just Sorry, not sorry.
[124:17] Dylan and I got a dog when we were
[124:19] living together like
[124:21] when was that?
[124:23] Almost 10 years ago?
[124:25] Dylan and I got a dog,
[124:28] and we were young, man. We were like 23
[124:31] or something. Young. This was like
[124:35] before I founded Strike, but like right
[124:37] before. Like, I was open source
[124:39] Lightning Network developer.
[124:42] And Dylan and I got a dog, and Dylan
[124:46] was always out partying in the clubs,
[124:49] and I would I'm I'm not exaggerating.
[124:52] I'm being dead ass.
[124:53] Dylan was like
[124:55] the coolest coolest guy in town who's
[124:58] going to all the clubs. Like, ladies
[125:00] love Dylan. It's like running around the
[125:02] city, having fun. Whatever, he's 23,
[125:04] whatever.
[125:05] I was
[125:07] literally working on open source Bitcoin
[125:10] software all day, all night in our
[125:12] apartment.
[125:14] And so, we get this dog,
[125:16] and Dylan doesn't take care of the dog.
[125:18] Dylan's [ __ ] running around, boozing,
[125:21] chasing women.
[125:23] I'm trying to focus on the Lightning
[125:25] Network and building the future
[125:26] financial system,
[125:28] and I have this [ __ ] dog all by
[125:30] myself. And I'm like, bro,
[125:32] I can't take care of this dog all by
[125:34] myself. He's like, "Sorry, man. I'm
[125:36] busy." Running around.
[125:39] So, meanwhile, the dog ends up hating me
[125:42] cuz I kind of grew frustrated with the
[125:44] dog. The dog's [ __ ] all over the
[125:46] house. The dog It was a mess. I was too
[125:49] young to have a dog.
[125:51] Bad situation. Dylan bailed on me with
[125:55] the dog. He's probably in the chat like
[125:58] That's what happened. This is the same
[125:59] apartment when I had the painting that I
[126:02] got for six Bitcoin, but then Bitcoin
[126:04] obviously appreciated, so it became a
[126:06] six-figure painting, technically. And
[126:08] he's bringing home chicks from the club
[126:10] like, "Yeah, you know, this is
[126:11] six-figure painting we got on the wall."
[126:14] It was that apartment. We had a [ __ ]
[126:15] dog.
[126:17] And so, I'm a dog guy. Now, you're going
[126:20] to ask what happened to the dog. Is the
[126:21] dog okay? Yes, the dog's great. Once I
[126:23] realized the situation was bad, like the
[126:25] utter and complete gentleman that I am,
[126:28] I was like, okay, this It was a golden
[126:29] retriever. So, like, this golden
[126:30] retriever has to go find a farm.
[126:33] It needs I didn't have a yard. It was a
[126:35] tiny little apartment in Chicago. I
[126:37] didn't have a big closet like this. I
[126:38] had a
[126:39] No no room for this [ __ ] dog. Chewing
[126:42] up the couch, [ __ ] everywhere. I'm
[126:44] trying to
[126:45] trying to understand how the Lightning
[126:46] Network works. This thing's just like
[126:48] causing mayhem. Dylan's out at the club.
[126:52] So, I find a farm for this dog,
[126:55] and I give the dog to a new owner um
[126:58] that I knew through a friend. He was on
[127:00] a farm, and the dog
[127:02] lived an incredible life. Thing's still
[127:04] alive. Running around a farm. Amazing.
[127:07] So, that's my dog experience.
[127:09] I plan on having a dog someday,
[127:13] but I learned my lesson.
[127:15] I'm not I don't know if I'm ready for
[127:16] it. I got to focus right now.
[127:18] I got to focus right now. We're in the
[127:19] belly of the beast right now.
[127:21] My my first goal is to get engaged, get
[127:24] married, and have kids. That's my [ __ ]
[127:27] before I get a dog.
[127:29] I want to be a dad so bad, and not of a
[127:32] dog.
[127:35] My dream is to be a dad.
[127:39] So, anyways,
[127:40] not a cat guy, I'm a dog guy, and a Blue
[127:42] Devil guy.
[127:44] The only sports team
[127:47] I like as much as the Chicago Bears and
[127:50] the Bulls
[127:51] are probably the Duke Blue Devils.
[127:54] White Sox, Bears, Bulls, Duke. My dad
[127:57] went to Duke. I didn't go to college.
[127:59] I'm a die-hard Duke basketball fan.
[128:01] I can't watch Duke games in public.
[128:04] And ev- everyone that knows me knows
[128:06] that. That's not a
[128:07] that's a known fact. Like, oh, if Duke
[128:09] is playing,
[128:11] can't invite Jack to stuff. He can't
[128:13] leave his house.
[128:15] Um and so, beating Michigan,
[128:18] I mean, Michigan fans are the worst.
[128:21] I mean, just shoving a sock in Dave
[128:23] Portnoy's mouth.
[128:25] So,
[128:26] I'm not a cat guy, I'm a dog guy, a
[128:29] Bears guy, and a Blue Devil.
[128:33] All right. This episode is officially
[128:34] run 2 hours.
[128:36] So,
[128:39] Dylan texted me that he's sending in his
[128:41] 2 weeks' notice.
[128:43] Hold on.
[128:44] Which part of that would you push back
[128:46] on, Dil?
[128:47] It's not an insult. God forbid your
[128:50] friend gets on
[128:51] uh a show with 50,000 subscribers and
[128:54] says you got a lot of chicks and we're
[128:55] running around having a good time. God
[128:58] forbid.
[129:02] Dylan was killing it. I mean, what do
[129:04] you want like what?
[129:05] Which part of that was Let's see. I'm
[129:07] waiting for his response. Which part of
[129:09] that was bad?
[129:12] You guys know how we roll on this show.
[129:15] We prioritize the truth and nothing
[129:17] short of the truth.
[129:23] Dylan said he took care of the dog,
[129:25] walked him every day after work.
[129:28] And he loved Dylan.
[129:32] Yeah, debatable. Debatable that
[129:36] whatever.
[129:38] Whatever. Waste of time for the
[129:40] internet.
[129:41] Um
[129:43] Let it be known that Dylan took care of
[129:44] the dog when he got home from the club.
[129:46] He took the dog for a walk.
[129:48] Um all right. With that,
[129:51] I'm out of here, guys. Let me pull up
[129:52] the chat and see
[129:55] any last-minute
[129:58] things um
[130:01] you have for me.
[130:04] Uh
[130:08] nothing.
[130:10] All right, guys.
[130:13] Dylan Jack could have said Dylan was
[130:15] bringing dudes back to the apartment.
[130:16] See,
[130:18] that's what I'm saying, guys. You can't
[130:20] be so cynical.
[130:21] God forbid your boy says, "Yeah, when we
[130:24] were living together, he was running
[130:25] around chasing tail, having a good
[130:27] time."
[130:28] What I could have said is Dylan was
[130:30] running around
[130:31] >> [laughter]
[130:33] >> No. No. The dog's name was Finn after
[130:36] Hal Finney.
[130:38] Um all right. I'm out of here. I'll see
[130:41] you guys next week. As always, leave a
[130:43] comments, questions uh in the comment
[130:46] section. I read them all. Let me know
[130:48] how I can make the show better. Um was
[130:50] this too long? Did the topics resonate?
[130:53] Did it make sense? What do you think of
[130:54] our line of credit product? How can I
[130:56] help you? And uh
[130:59] with that, I'm out of here.
[131:01] Peace and love. Take care of yourselves.
[131:03] Turn on your DCAs. Bye.