The Great Repricing: From Fiat to Bitcoin

[0:01] Yo, what is going on everybody? Welcome
[0:06] back to another episode of the Jack
[0:08] Malers Show. I am Jack. Could you have
[0:12] guessed you're listening to another
[0:14] episode of Mail is going on everybody?
[0:18] Welcome back to another episode of the
[0:21] Jack Malers Show.
[0:24] >> Not a professional podcaster. Sorry for
[0:27] the hiccups. You're listening to another
[0:29] [laughter] episode of Mail Bag Monday,
[0:31] ladies and gentlemen. Every Monday,
[0:35] 6 PM Eastern.
[0:38] I'm checking the chat. How bad was that
[0:40] in your ears? Hopefully not too bad. All
[0:42] right. Um, here's the deal, ladies and
[0:45] gentlemen. I just saw so many of you
[0:47] guys here at Plan B in Lugano. I'm out
[0:50] here in Switzerland. I'm still here. I
[0:52] haven't flown home yet. I just want to
[0:54] say how much I appreciate all the love
[0:56] that you guys give me. So many of you
[0:58] guys came up. You guys are listeners to
[1:00] the show from all over the world. US,
[1:02] Europe, UK, Latin America, Africa. It's
[1:05] crazy. So, it's good to see you guys
[1:08] again. Again, this is like my highlight
[1:10] of the week. Also,
[1:13] because I'm still in Europe, I'm in my
[1:15] hotel, so I'm kind of whispering. It's
[1:18] 11 o'clock here. Um, Bitcoin never
[1:21] sleeps, so neither does this show. Okay.
[1:24] But I can't be screaming um because I'm
[1:27] gonna wake everybody up and that's not
[1:29] right. That's not fair. Um so this
[1:32] honestly might be a good test for me
[1:34] because I kind of have to chill out. Um
[1:37] so let me know chat if I'm coming in a
[1:41] little quiet if I'm whispering.
[1:44] Um and I'll adjust here. And the
[1:47] internet in this hotel, it's not like
[1:50] the empty closet. Listen, we all can't
[1:52] be like the empty closet. the empty
[1:54] closet sets a high bar. Okay. Um and so
[1:57] not only am I not a professional
[1:59] podcaster, but I'm also on hotel Wi-Fi
[2:03] and I'm going to wake the guy up next
[2:05] door if I start screaming about dollar
[2:08] debasement and how Bitcoin is the best
[2:10] thing since sliced bread. So, we're
[2:12] going to do it as a team, okay? We're a
[2:15] group here. No advertisement, no
[2:18] [ __ ] no fluff. Only signal. It's
[2:21] us. We are the community. Okay. So,
[2:24] we're going to do it together. With that
[2:26] being said, audio is fine. You're fine.
[2:29] God, you guys are the best. I love you
[2:30] so much. Okay. Um, and I don't have my
[2:34] other monitors here, so we're going to
[2:35] be my notes and all of my price things
[2:39] are on my phone. Let's go. Ladies and
[2:41] gentlemen, this episode is being
[2:44] recorded at a Bitcoin price of $114,240.
[2:49] Okay, that puts our market cap back at
[2:52] just below 2.3 trillion. It's $2.28
[2:55] trillion US. All-time high, it remains
[2:58] the same, 126,160.
[3:01] We're about 10% from that all-time high.
[3:04] Technically, 9.4%.
[3:06] We set that this month, October 6th, 3
[3:10] weeks ago to this day. Okay, so we're
[3:12] only three weeks off the high, 10% off
[3:14] the high. Really no big deal. We'll get
[3:16] into that in a bit. For those that time
[3:19] stamp in Bitcoin block height, when our
[3:22] great great great great grandchildren
[3:24] are watching this and they're like,
[3:25] "Wow, this guy was an idiot. When was he
[3:28] recording these?" I'll say, "Block
[3:31] height 921,086."
[3:35] You great great great great grandchild
[3:37] [ __ ] All right, with that,
[3:40] let's go. Episode 89. Today's episode is
[3:44] titled the great rep rericing from fiat
[3:48] to Bitcoin. And really this kind of
[3:52] informs the way I think about the
[3:55] macroeconomic situation about Bitcoin
[3:58] about this new monetary era because the
[4:02] United States is used to being able to
[4:04] print their way out. The United States
[4:06] in this post 71, we talk about it a lot
[4:09] on this show. The United States has
[4:12] hollowed out its manufacturing based. We
[4:14] don't produce things anymore. We've
[4:17] really delegated that primarily to
[4:19] China. We've taken on the role of
[4:22] producing the world reserve currency
[4:24] which no longer has ties to the physical
[4:26] world. It's no longer governed by mother
[4:28] nature. We segregated that in 1971. We
[4:31] now just print it print these pieces of
[4:34] paper. The problem is though that's not
[4:35] sustainable. Okay? and the US
[4:38] government. What we can't print? We
[4:40] can't print jobs. We can't print
[4:44] surpluses. We can't print
[4:47] CPI data. We We can't fake these things.
[4:51] And so, we're having to mark our reality
[4:53] to market. That's why I call it the
[4:55] great repricing. Is the dollar going to
[4:57] go away anytime soon? Probably not.
[5:00] Probably not. I'm not saying that it's
[5:02] not going to be the world reserve
[5:03] currency next year. What I'm saying is
[5:06] this entire macroeconomic situation has
[5:09] to get repriced. The post $71 in my
[5:12] humble opinion is dead.
[5:16] The beginning is ending in the next
[5:19] chapter. The end is just beginning.
[5:22] Okay? And so it's going to get repriced
[5:24] in what? To me, it's going to get
[5:26] repriced most violently in Bitcoin. In
[5:28] the best expression of currency
[5:30] debasement, in the best reflection of
[5:32] all the problems we have today. Bitcoin
[5:34] can change the world because the world
[5:36] cannot change Bitcoin.
[5:39] And so I think all of the things going
[5:42] on today are going to be best expressed
[5:44] through Bitcoin, best repriced through
[5:47] Bitcoin. So the great repricing from
[5:49] fiat to Bitcoin. And a lot of this show
[5:52] is calling out the fluff, the fake, the
[5:55] things that they're trying to print. So
[5:57] first chapter, chapter one, if you can't
[6:00] print productivity, you print
[6:02] narratives. Okay. So, what narratives am
[6:05] I talking about? The United States. So,
[6:06] we're rewinding to last week and just
[6:08] reminding everyone that we're in a trade
[6:10] war. Okay. China and the United States
[6:13] are duking it out. That's not news to
[6:15] anyone listening to this show. Hopefully
[6:17] not, but if you're new here, that's
[6:18] fine. That's fine. Hey, it's a great
[6:21] place for beginners. China and the
[6:24] United States are really duking it out.
[6:26] The two world powers for what the new
[6:28] world order is going to be. The existing
[6:31] world order, the post 1971 dollar
[6:33] structure, the postworld war II monetary
[6:36] era is over. Now the question is what's
[6:38] next? And obviously us on this show, we
[6:42] think Bitcoin is. China definitely
[6:44] doesn't think Bitcoin is. The United
[6:46] States might, but they're duking it out.
[6:48] We're in the middle of a fight. Trump
[6:51] and the United States obviously tries to
[6:52] find leverage. They try and flex their
[6:54] position. They try and negotiate from
[6:56] strength. I don't think they have
[6:58] leverage. I don't think we have much
[7:00] strength, but they're going to try
[7:01] anyway. And what are they try? What are
[7:02] they trying? Tariffs. So, this is a long
[7:05] note from Trump. This is from last week,
[7:08] but if you go down to where it's
[7:09] highlighted, it says the United States
[7:10] of America will impose a tariff of 100%
[7:13] on China. We said on this show, that's
[7:15] garbage nonsense. We don't have that
[7:18] leverage. China has all the leverage.
[7:20] China has the rare earth. China has the
[7:22] manufacturing capacity. China is the
[7:25] world's factory. China produces all the
[7:27] things we actually consume. Again, proof
[7:29] of work, real commodities, real
[7:32] materials, printed pieces of paper can
[7:34] only take you so far.
[7:36] And so, I think the United States is
[7:39] primarily bluffing.
[7:41] And we're starting to see evidence of
[7:44] that, which we'll get into. But this was
[7:47] the stance. This was the presumed
[7:49] leverage. This also is what led Bitcoin
[7:52] to crash from 120,000 to 105,000 in a
[7:56] day. And this was what caused a lot of
[7:58] the dip. A lot of this world
[7:59] uncertainty. Are America and China
[8:01] actually going to go through a divorce?
[8:02] Is there going to be a world war? Is
[8:04] there going to be a hot war of sorts?
[8:07] There's a lot of uncertainty in the
[8:08] world and it's the tension of this trade
[8:11] war. Okay, we move on. Another
[8:15] narrative that the United States tried
[8:17] to print since we last spoke is that the
[8:20] United States ran a trade surplus in the
[8:22] month of September. So when you're the
[8:25] world reserve currency, you do not run a
[8:27] surplus because your job is to export
[8:30] the currency. So when you hear
[8:32] countries, you know, El Salvador exports
[8:35] coffee, let's say, as one of their major
[8:36] exports, right? You hear countries that
[8:38] have naturally rich soil in something or
[8:41] they've been able to build a
[8:42] manufacturing capacity like China,
[8:45] right? Where they can produce goods and
[8:46] services like chips, like rare earths,
[8:49] like whatever it is, precious metals, uh
[8:53] industrial metals, the United States,
[8:56] you have to think what's our net export?
[8:58] What do us as the world reserve currency
[9:01] issuer export to the rest of the world?
[9:03] The answer is the currency itself. If
[9:06] you're going to take on the role of
[9:08] being the world reserve currency, that
[9:10] implies everyone needs it as a product
[9:13] because the world reserve currency is
[9:15] how you price goods and services. So it
[9:16] means it's how you borrow, right? It
[9:18] means it's how you do intercurrency
[9:20] exchange. There's not enough liquidity
[9:22] for the Ganaian SETI and the Nigerian
[9:24] Naira to have direct liquidity for
[9:27] crossber transfers. So do you know how
[9:29] crossber currency settlement is done?
[9:31] You go from your foreign currency to the
[9:33] dollar and then from the dollar to your
[9:34] foreign currency. So the world is
[9:37] constantly in demand for dollars. No
[9:39] matter how much they like or dislike the
[9:41] United States, no matter their trade
[9:42] balance, no matter anything, if it's the
[9:44] world reserve currency and it carries
[9:46] the liquidity and the unit of account
[9:47] and all the network effects, everyone
[9:49] needs dollars. So the question is, if
[9:51] everyone's in a constant need for
[9:52] dollars, where are they going to get
[9:54] them?
[9:56] The answer, the United States of
[9:58] America. So the United States of America
[10:00] runs what's called a twin deficit.
[10:03] We constantly are exporting more dollars
[10:06] than we're bringing in. It's a very
[10:08] fancy and complicated way of saying we
[10:10] run the c country unprofitably. Okay? We
[10:13] print more dollars than we earn. So we
[10:16] constantly are growing our debt. What
[10:18] comes with being the world reserve
[10:20] currency? And we're going to talk a lot
[10:21] about this. You could call it the USD
[10:24] Dutch disease. You can call it the
[10:25] Triffins dilemma. It's an it's an
[10:27] illness. It's sickening. Okay? Because
[10:30] if you want to be the world reserve
[10:31] currency over a sustained period of
[10:33] time, it is implied you have to you have
[10:37] to run a deficit. It is implied you have
[10:41] to you have to
[10:43] build up an immense amount of unpayable
[10:46] debt. Okay? These are non-negotiables.
[10:48] These are the physical realities of the
[10:51] world. If you do not export more dollars
[10:55] than will you bring in then you cannot
[10:57] be the world reserve currency because
[10:59] the world will run a shortage of the
[11:01] currency. Okay. This is why I am very
[11:03] confident that the world needs to be run
[11:05] on a neutral money. A money that nobody
[11:09] issues controls and is responsible for
[11:11] distributing
[11:13] because it is a disease. It has plagued
[11:17] the United States and has gone too far.
[11:19] Now, why is all this relevant to this
[11:21] slide? Well, when the Treasury Secretary
[11:24] of the United States of America comes
[11:26] out and says, "We're running a surplus."
[11:30] That should make everyone go, "What the
[11:33] hell? Does this guy think I'm a [ __ ]
[11:35] What's going on? None of this makes any
[11:37] sense." So, this from Treasury Secretary
[11:39] Scott Bessant on Twitter. Today's
[11:41] monthly Treasury statement reflects what
[11:43] I've been saying. Strong private
[11:44] sectorled growth alongside constrained
[11:46] federal spending means the deficit to
[11:48] GDP will take care of itself. Full year
[11:51] 2025's deficit to GDP is now projected
[11:53] to be under 6% and with the continued
[11:55] fiscal restraint we can reach 3% by
[11:57] 2028. September's monthly surplus.
[12:01] Surplus meaning we brought in more
[12:05] dollars than we exported which I just
[12:07] explained to you guys is physically
[12:10] impossible. Now, not on a month-to-month
[12:12] basis, generally, but still, this should
[12:15] not make any sense. This was the largest
[12:18] surplus of any September on record and
[12:21] 147% higher than last year. So again,
[12:23] what is the United States trying to do?
[12:25] If they cannot print productivity, they
[12:27] cannot print the solutions to these
[12:28] problems because at the end of the day,
[12:30] you cannot defy reality. You cannot defy
[12:33] the universe. You cannot defy mother
[12:35] nature. And so they print narratives.
[12:38] They print narratives. The narrative is
[12:40] tariffs are working. We're solving this
[12:42] problem. We're coming from a position of
[12:44] strength. And you know what is so
[12:46] embarrassing is so many people on the
[12:48] internet believe this guck and garbage.
[12:50] Chimath Polyopatia from this fancy
[12:53] Silicon Valley investor, this fancy
[12:55] Silicon Valley podcast, the All-In
[12:57] podcast, and these guys. And I've never
[12:59] met Chimoth. Maybe he's super smart and
[13:01] maybe he's super nice. It's not
[13:02] personal, but wow.
[13:05] Really? Wow. Did you did you dare to
[13:07] check the actual numbers of how they
[13:09] achieve this? Because we've talked on
[13:11] this show, if they wanted to achieve
[13:13] this, they can cut military defense
[13:15] spending. They can cut health and human
[13:17] services. They can cut social security
[13:20] by like 25 30 40 50% cause a recession
[13:24] greater than COVID. and they would they
[13:27] would we would operate in a surplus but
[13:28] we would ignite a great depression
[13:30] greater than the great depression or we
[13:34] have to print our way out. So the mere
[13:36] fact that the experts in this world that
[13:39] everyone takes advice on that everyone
[13:41] has on the board. Wow. Wow. Wow.
[13:45] Unbelievable. How did they do it? This
[13:47] is America. This is amazing. A lot of my
[13:50] mission on this episode is this is why
[13:52] Bitcoiners, we have to think from first
[13:54] principles. We have to think for
[13:55] ourselves. The propaganda is going to go
[13:57] from here through the roof. They have to
[14:00] print narratives. Okay, let's take a
[14:02] look at the actual numbers. This is from
[14:03] Luke Groman. Great news. But how did we
[14:07] only spend $ 37 billion on interest in
[14:11] the month of 37 trillion in debt?
[14:16] That is far below
[14:19] the rate in which we are borrowing as a
[14:21] country. Far below.
[14:25] And how did we only spend $ 32 billion
[14:28] in the month on Medicare? Way below what
[14:31] we spend. And why is veterans benefits
[14:34] spent 50% below monthly run rate of
[14:38] expected?
[14:39] How is any of this possible?
[14:42] Now, I took a closer look at the
[14:45] financials and so did a lot of rational
[14:48] people. Wow. Wow. Wow. These are the
[14:51] same people that see Salana. They go,
[14:53] "Wow. Oh my god. Wow. Pathetic. It's
[14:57] ridiculous. It's ridiculous." And again,
[14:59] a lot of these people I haven't met, but
[15:01] give me a [ __ ] break. Wow. Just like
[15:05] that, we threatened tariffs and we
[15:07] solved the United States $ 37 trillion
[15:10] worth of debt. Wow.
[15:12] Are you a [ __ ] Are you a [ __ ] So,
[15:16] when you look at the US financials,
[15:20] they called it a surplus,
[15:23] but they cut outs by 43%.
[15:27] They booked a $ 107 billion what they
[15:30] called negative spending.
[15:35] I'm sorry. I run two massive companies.
[15:41] I I've accounted for big balance sheets.
[15:44] I mean, I've seen it all.
[15:47] Has anyone heard of a negative spend?
[15:50] What is a negative spend?
[15:55] I look it up. Everyone's asking the US
[15:58] Treasury. No comment. No comment. Every
[16:00] press conference, every interview, no
[16:02] comment. Excuse me, sir. You claimed
[16:05] that our government is running in a
[16:07] surplus, the greatest surplus in
[16:09] September's history as a government.
[16:13] Do you mind defining what a negative
[16:15] spend is? Because usually, I'm sorry. I
[16:18] mean, I know I'm a college dropout. I
[16:19] know I'm the guy in the closet. I know
[16:20] I'm hoodie boy. But usually when you
[16:23] spend that means money leaving the
[16:26] balance sheet, not entering. There's no
[16:28] ne There's no such thing as a negative
[16:30] spend. Do you mind defining that? No. No
[16:35] definition.
[16:36] No definition. What is a negative
[16:39] outlay? That's what they called it. What
[16:41] the hell is a negative outlay?
[16:47] So listen,
[16:50] if you can't print productivity, you
[16:51] can't print solutions to your problems,
[16:53] you print narratives. Okay? There's a
[16:56] lot of narratives we're going to go
[16:57] through here. This is the great reperic
[17:00] and they're going to try and print their
[17:02] way out with real currency and debase
[17:04] it. And they're going to try and print
[17:05] their way out with fake narratives.
[17:08] Don't buy them. And I'll be the first to
[17:10] tell you guys the truth. And if I'm
[17:12] wrong, I'll be the first to raise my
[17:14] hand. and say, "Yo, I messed up. I got
[17:17] it wrong. That's on me. Here's now
[17:19] what's right. I have no problem doing
[17:21] that. No problem doing that." Okay. But
[17:25] it's really important that we think for
[17:28] ourselves and we don't believe a lot of
[17:30] this garbage there. The American people
[17:33] think we ran a surplus without double
[17:36] clicking into the financials and reading
[17:37] it was all smoke and mirrors.
[17:41] So, I have in my notes that the record
[17:43] September surplus was garbage. It was
[17:46] fake. It was accounting gimmicks. None
[17:48] of it was real.
[17:50] And the bigger picture is if you
[17:54] actually do proper accounting, these
[17:56] tariffs haven't helped us at all.
[17:59] In fact, our projected deficit is
[18:02] supposed to be even bigger than the
[18:04] calendar year of 2024.
[18:08] When you can't print productivity, you
[18:11] print narratives.
[18:12] Be careful. Be careful out there. Okay,
[18:15] we move on. So, after all this, we're
[18:19] going to tariff you 100%. We ran a
[18:22] surplus. Blah, blah, blah, blah, blah.
[18:24] Wow. Wow. Oh, wow. Salana, the US
[18:27] government surplus tariffs. Ridiculous.
[18:31] So ridiculous. What happens? Stock
[18:34] market down, Bitcoin down, risk off,
[18:37] credit spreads thin, liquidity gone on a
[18:41] Sunday morning. These guys make no
[18:43] mistakes, okay? They they do it every
[18:45] weekend. Do you guys notice that? They
[18:47] do it when markets are closed. They do
[18:49] it on Sundays. Trump issues his tweets
[18:52] and his apologies on Sundays. What
[18:54] happened on Sunday? China, top trade
[18:57] negotiator, reached consensus with the
[18:59] United States. China, top trade
[19:01] negotiator, talked about tariff and
[19:02] export control. China top trade
[19:04] negotiator will enhance communication
[19:06] with the United States. Look at Bessant.
[19:10] So much for the we've solved all of our
[19:12] problems. We have all the leverage.
[19:14] Guys, how many times do we have to see
[19:16] the same story over and over and over
[19:19] again?
[19:20] Same thing with liberation day or week
[19:23] or whatever. It's like, and some of the
[19:25] comments you guys give me is, "Dude, you
[19:27] got to freshen it up, man. It's the same
[19:29] episode every week." I feel I'm sorry.
[19:31] I'll take that feedback as warranted,
[19:34] but it's the same garbage from them
[19:35] every week. Fake news, fake narratives,
[19:39] fake garbage, fake money, fake
[19:42] collateral backing the money.
[19:45] As Bitcoiners, we will not buy it. We
[19:48] will not stand for it. We will think for
[19:50] ourselves. That's why you listen to this
[19:51] show, so you can get some unbiased
[19:53] truth. I'm not selling you any ads. I'm
[19:55] not selling you any [ __ ] It took
[19:58] them a week. A week before they said,
[20:01] "Hey, hey, hey, hey, hey, everyone, calm
[20:03] down.
[20:04] We We made peace with China." So, let's
[20:08] let's watch what our boy Scotty be had
[20:09] to say. The tweet says, "Well, it looks
[20:12] like we may have a deal, folks. The
[20:14] Chinese embassy posted that after
[20:15] successfully successful trade talks
[20:17] during the weekend, the US and China
[20:19] have agreed to make full use of China US
[20:21] economic and trade consultation
[20:23] mechanism, maintain close communication
[20:25] on respective concern in the economic
[20:26] and trade fields, promote the healthy,
[20:28] stable and sustainable development of
[20:30] economic and trade relations to benefit
[20:32] the two people and contribute to global
[20:34] prosperity. And let's listen to our boy
[20:36] Scotty B,
[20:39] the man, the myth,
[20:42] the printer of fake narratives. Let's
[20:44] listen.
[20:47] >> This was the fifth meeting that I've had
[20:48] with my Chinese counterpart, the vice
[20:50] premier, Julie Fun, and we covered a
[20:53] wide range of issues, and I think we've
[20:55] reached a substantial framework for the
[20:58] two leaders who will meet in Korea next
[21:00] Thursday. So uh you know on the on the
[21:03] table uh the president had given me
[21:06] maximum leverage when he threatened 100%
[21:09] tariffs if the Chinese imposed their
[21:12] rare earth uh global export controls. So
[21:15] I think we have averted that so that the
[21:19] tariffs will be averted and we have a
[21:22] regular meeting regular quarterly
[21:25] meeting uh with the Chinese. uh it was
[21:28] scheduled for November 10th or before
[21:31] November 10th. I don't think we will
[21:32] have to have that. So uh we have been
[21:35] rolling the tariffs quarterly. So we
[21:38] agreed on that. We also agreed on
[21:40] substantial agriculture purchases for US
[21:44] farmers. We agreed that the Chinese
[21:46] would begin to help us uh with the
[21:49] precursor chemicals for this terrible
[21:52] fentanyl epidemic that's ravaging our
[21:55] country. So, I would say that it was a
[21:57] very good meeting overall.
[22:01] >> And there you have it, folks. Just like
[22:04] that, we're not going to tariff China.
[22:06] Just like that, leverage gone. I
[22:09] continue to say the same thing. And by
[22:11] the way,
[22:13] I'm not a fan of the CCP, obviously. I'm
[22:16] not a fan of China. Obviously, guess
[22:18] where I live. Guess my nationality. I'm
[22:21] American. I also am not as proud of this
[22:26] version of America as I am of the idea
[22:29] of America. I think America is plagued
[22:32] by being the world reserve currency.
[22:34] I've said it a million times and I'll
[22:36] say it once more. We can solve all of
[22:39] America's problems in 10 seconds.
[22:43] It's called do not be the world reserve
[22:45] currency.
[22:47] The dollar won't be artificially
[22:48] inflated. That means our export business
[22:51] will be competitive. That means we'll
[22:52] have jobs again. That means we can
[22:54] manufacture again.
[22:56] And at the end of the day, that's what
[22:58] America's doing. The problem is, how do
[23:01] you achieve it while getting reelected
[23:02] if you're a politician?
[23:05] Because the problem is you'd have to
[23:06] admit to at least 40 years of mistakes,
[23:09] but more like 80. You'd have to admit
[23:13] that the current system has biased
[23:16] Washington and Wall Street. You'd have
[23:18] to admit you have abused and deprived
[23:21] the everyday American. So the question
[23:24] is, how do you solve the problem while
[23:26] getting reelected,
[23:28] while looking good, while creating a
[23:31] narrative?
[23:33] But my opinion remains the same. The
[23:35] United States has no leverage in this
[23:38] trade war. The United States is facing a
[23:42] harsh reality
[23:44] that printing money is not sustainable.
[23:46] that printing money is not real. Money
[23:49] that can be printed is not real.
[23:53] Facts. Facts, guys. That's just facts.
[23:57] So, we move on. Now, I've talked a lot
[24:01] about how I I just want to touch on
[24:03] Bitcoin's price action for a second
[24:05] because the last two episodes, Bitcoin
[24:07] was dipping, right? And I listen, I've
[24:09] been in Bitcoin for 13 years, okay?
[24:12] Since I've been in Bitcoin a long time.
[24:14] I've seen crazy I've seen Bitcoin go
[24:17] down 50% 50 in one day
[24:22] in six hours. I've seen Bitcoin drop in
[24:25] half.
[24:27] So when it goes from 120 to 105, that's
[24:30] normal for me. Okay? But it's not for
[24:33] everybody and I get that. I relate to
[24:36] that. There's empathy there. Okay? And
[24:39] so what I've said to you guys is that
[24:41] don't think of it as a weakness. I know
[24:43] that there was a moment where gold's
[24:45] going up and Bitcoin's going down and
[24:46] everyone's freaking out and Peter Schiff
[24:48] is dunking on us and all this stuff. And
[24:50] my message was, relax, Bitcoin's
[24:53] working.
[24:55] Why is it working? What are you talking
[24:56] about, Jack? It's going down. It's not
[24:58] working. No, it is working. Because what
[25:00] we want Bitcoin to be is the best
[25:03] reflection of the truth.
[25:05] We want Bitcoin to be the best
[25:07] expression
[25:08] of the world, of what's going on.
[25:10] Because at the end of the day, I want
[25:12] Bitcoin to be the best expression of
[25:14] currency debasement, the best expression
[25:16] of the times, the best expression of
[25:19] fiat liquidity plus technology. Because
[25:22] if it is, it's going to be the best
[25:25] invention of our lifetimes. It's going
[25:27] to be the money for all. It's going to
[25:29] collateralize the global financial
[25:31] system. If it's not,
[25:34] something else is. And so the cost of
[25:37] that guys is volatility. You know the
[25:40] saying volatility is a reward, a gift to
[25:42] the faithful. The cost of being the
[25:46] truth is volatility because the world's
[25:48] volatile. There's a lot going on. These
[25:50] superpowers are clashing.
[25:52] And so when Bitcoin goes down like that,
[25:54] I know it sucks, but it's working. And
[25:56] so as soon as these two world powers and
[25:59] Besset gets on TV and says, "We're good.
[26:01] We're all good. Everyone relax." Bitcoin
[26:03] goes right back up. And we're right
[26:06] back. Look, my next slide, guys. If
[26:09] Bitcoin closes at 115 1116 this month,
[26:12] it'll be the highest monthly close ever.
[26:16] Ever. I know it's not all-time high, but
[26:18] we didn't close at alltime high.
[26:22] Do you understand? Like this [snorts]
[26:25] through the nose, out through the mouth.
[26:28] It's stay humble. It's stack sats. It's
[26:31] lower time preferences. You own the best
[26:33] reflection of currency debasement. who
[26:36] own a truth machine. So, as the world
[26:40] fights and figures itself out, Bitcoin's
[26:42] going to travel with it. But that's a
[26:43] good thing because on the other side of
[26:46] all of this, Bitcoin's going way higher
[26:48] than anything else, like it always has.
[26:50] Look at this chart.
[26:57] And I told you guys, the US is bluffing.
[27:00] China's bluffing. Trump has been very
[27:02] clear. November 1st, November 1st,
[27:03] November 1st, November 1st. What do you
[27:05] guys think is going to happen between
[27:06] now and November 1st? It's going to be a
[27:08] game of tugof-war. It's going to be a
[27:10] game of [ __ ] It's going to be a
[27:11] game of nonsense. Can't print
[27:13] productivity. You're going to print
[27:14] narratives.
[27:16] These guys are in the business of
[27:18] printing nonsense. Printing currency
[27:20] paper and printing narratives. Okay. So,
[27:24] because I say the same thing so many
[27:25] times, I thought this clip I've been
[27:28] listening to this podcast recently.
[27:29] These guys are hilarious. I think
[27:31] they're good. Shout out to them. Felix,
[27:33] Quinn, Tyler. I think Tyler's he's
[27:36] [ __ ] hilarious and he and and I love
[27:38] his opinions. So, this was a different
[27:40] it was same same thesis, different words
[27:43] from a different guy, but I thought it
[27:45] was great and I want to play it for you
[27:46] guys. Uh this is exactly how I feel.
[27:50] >> I'm just trying to arrive first
[27:53] principles. I can't just sit here and
[27:55] say four year cycle I'm done. I think
[27:58] what happened with gold is
[28:02] >> I think first off the two-year yield and
[28:05] Bitcoin are the two most important
[28:07] assets to watch globally. I think bar
[28:12] that's what I figured out is like I
[28:14] think Bitcoin leads a lot of the
[28:16] plumbing problems and also a lot of the
[28:18] geopolitical problems when you think
[28:20] about like its ownership is global. you
[28:22] have a real-time price like there
[28:24] there's I think what was it was
[28:27] discounting was a lot of this China
[28:30] trade stuff where
[28:33] a lot let's simplify it I think gold was
[28:38] China buying and basically giving a shot
[28:41] across the ballot to Trump and saying
[28:43] hey you know we're going to dump your
[28:45] treasuries and we're going to use this
[28:46] new collateral with for yuan back uh
[28:50] gold you know gold currency
[28:52] and then you know we're also going to
[28:55] smash your Bitcoin because we have a lot
[28:56] of miners or whatever supply in China.
[28:59] This is obviously a little bit
[29:00] conspiracy theory, but like regardless,
[29:02] this is these are two big behemoths
[29:06] trying to battle for what the next 21st
[29:08] century reserve collateral is. And we're
[29:10] seeing this these forces go back and
[29:12] forth. And you know, in a lot of senses,
[29:18] I do think crypto is going to probably
[29:20] take off here into your end as as these
[29:22] liquidity, you know, the US unleashes
[29:24] liquidity. But you need you need the the
[29:27] two behemoths to come to some sort of
[29:29] agreement before I think it does. Uh
[29:32] because there's
[29:33] >> and that and that looks likely for the
[29:35] end of the month like they're going to
[29:36] have the summit. Xiinping and Trump are
[29:37] meeting and that's a I think that like
[29:40] yeah like two weeks ago we're talking
[29:42] about right after the crypto wash out in
[29:44] October 10th. It's like yes time to
[29:46] slowly buy but you know that was
[29:48] triggered by this this aggression
[29:51] between Trump and Xiinping but you you
[29:54] know that the summit is not till the end
[29:55] of the month. So you have this moment in
[29:57] between where they can both escalate to
[29:59] increase their their power or their
[30:01] their bargaining constraints going into
[30:03] the meeting and then they can get
[30:06] escalate deescalate from there. So you
[30:08] know that there's nothing they have
[30:10] nothing to lose by escalating further
[30:12] until the summit and now we're almost at
[30:14] the summit. That is exactly. So that
[30:16] that's my my point was just like Bitcoin
[30:18] was sniffing out a lot of those issues
[30:21] and so was gold at the same time. It's
[30:23] like a those bargaining chips. This is
[30:25] this is way bigger than we think it is
[30:28] this period of time and we're probably
[30:29] going to look back and it's going to set
[30:30] the ground, you know, the the rules for
[30:33] the next, you know, like after World War
[30:35] II, we had a bunch of like rules for the
[30:37] global economy. We're in the midst of
[30:39] this renegotiation of social global
[30:42] social contract. It's kind of wild.
[30:44] >> Yeah,
[30:47] >> it's a same opinion, different words,
[30:50] but I love that clip and I couldn't
[30:51] agree more. First of all, that last
[30:55] sentence
[30:56] I've been saying, guys, the gravity of
[30:59] this moment is massive.
[31:02] The old world order is over. the
[31:05] rules-based order of we're the world
[31:07] reserve currency issuer and if you don't
[31:09] like it, we're going to fly to where you
[31:11] are and drop a bomb on your head and ask
[31:13] you how much you like it. That's over.
[31:16] And a lot of the reason China won't give
[31:18] us the rare earth, China specified, we
[31:21] won't give you guys military qualified
[31:23] rare earths specifically,
[31:26] not because we want to shut your country
[31:28] down and have society come to a
[31:30] screeching halt. We want to prevent you
[31:33] from creating the weapons that get
[31:34] pointed at our forehead.
[31:38] So the the old world order, the
[31:40] rules-based order, that's over.
[31:44] We're living through right now
[31:46] the future
[31:48] of society.
[31:51] What's it going to look like? And the
[31:53] coolest part is for the first time ever,
[31:56] we have a choice, you and I, the people.
[32:01] Satoshi gave us a choice. We're at the
[32:04] bargaining table. We get to act.
[32:11] Appreciate how cool that is.
[32:16] We have a life raft. We have a monetary
[32:19] network.
[32:21] We have a monetary policy. And so when I
[32:24] go to bed every night, when I wake up in
[32:26] the morning, the question is super
[32:27] simple. What do I want the future to be?
[32:32] Do I want the future to be gold? Sure.
[32:35] Is gold better than US treasuries?
[32:36] Unquestionably. There's no doubt about
[32:38] that. Do I want the future to be based
[32:41] on gold? No.
[32:43] Gold already failed us.
[32:46] Gold doesn't have a monetary network.
[32:48] Gold's monetary networks is us humans.
[32:52] So gold needs to be concentrated with a
[32:55] government, with a company, with a bank,
[32:57] with a central bank in order to achieve
[33:00] transaction finality globally in a
[33:03] society that's run digitally.
[33:05] Gold has failed us and I have no reason.
[33:08] We can't make gold better.
[33:10] We found gold and it is what it is.
[33:16] So the fact that gold can't get better
[33:18] gives me no reason to believe that it
[33:20] won't fail us again.
[33:24] When I look at our options
[33:27] and the fact that I now have a choice,
[33:30] I choose Bitcoin. But appreciate the
[33:33] moment
[33:35] and value the fact that you have an
[33:39] option.
[33:42] So many people out there
[33:45] think, well, what am I supposed to do?
[33:46] I'm not the president. I'm just an
[33:48] accountant.
[33:50] I'm just a social worker. I'm just a
[33:54] teacher.
[33:56] I'm going to go to work, watch my
[33:58] reality TV, eat my sugar candies, and go
[34:01] to bed.
[34:07] Those people deserve everything that
[34:09] comes with the future
[34:13] for those that decide for them. They
[34:15] deserve it.
[34:19] You all listening to this deserve
[34:21] everything that comes with taking
[34:22] control of your own future, of your own
[34:24] private keys.
[34:26] The other thing Tyler said, guys,
[34:28] Bitcoin 247 market, globally accessible,
[34:32] extremely liquid, top five, top 10 asset
[34:35] in the world. It's a truth machine.
[34:39] It sniffs out when there's trouble. It
[34:42] smells danger.
[34:44] It also reacts the oppositely. Okay. So,
[34:48] when you see it running around, you see
[34:50] it jumping up and down. Breathe. Lower
[34:52] your time preference. It's working. It's
[34:54] working.
[34:56] It's working. Okay. Let's move on.
[35:01] And And again, if Bitcoin closes like
[35:03] around where it is today, highest
[35:04] monthly close ever. The four-year cycle
[35:07] to me like done. It's over. Like I'm
[35:11] just thinking first principles. I'm
[35:13] thinking rationally. There's so much
[35:15] liquidity that has to come. We're
[35:16] getting They think there's going to be
[35:18] The market's pricing in three Fed cuts
[35:20] before the year is over. It's about to
[35:22] be Halloween.
[35:26] The amount of money that has to be
[35:28] printed. These guys are talking about
[35:30] wartime financing to re-industrialize
[35:32] the United States of America.
[35:36] They're talking about basically
[35:38] combining the Fed with the Treasury.
[35:40] We're talking about fiscal dominance.
[35:44] And I'm supposed to be bearish on
[35:45] Bitcoin because of a four-year theory.
[35:50] What?
[35:51] I don't know. Call me crazy. Call me
[35:54] super cycle. Maybe I'll regret it. Doubt
[35:56] it. All right. Next chapter. The trade
[35:59] war scoreboard. This is from The
[36:02] Economist. The world's most important
[36:03] relationship is in a shocking state.
[36:05] China is on top and changing the path of
[36:07] the global economy. This chapter is just
[36:10] checking in on the scoreboard, guys. And
[36:12] again, we're not cheering for China.
[36:14] We're not cheering against the United
[36:15] States. If anything, I'm not going
[36:16] anywhere. I'm an American. We're going
[36:19] to get them. We're going to fix these
[36:21] problems. I love my country. But we have
[36:25] to face reality. It doesn't help us to
[36:27] lie to ourselves. Okay? And what I'm
[36:29] seeing is we're starting to see some
[36:31] reality. I'm starting to see the cycle
[36:33] cyclical nature of grief. Okay? Some a
[36:36] little bit of acceptance, a little bit
[36:37] of anger. Okay? So the economist is
[36:40] saying in broad daylight, uh, China is
[36:43] winning. Okay. Next, this is the CTO of
[36:47] Palunteer. He wrote an op-ed in the Wall
[36:49] Street Journal, and this is was his
[36:50] tweet. We offered China peaceful
[36:53] coexistence. We funded their industry,
[36:55] educated their children, brought them
[36:56] into the global economy. They murder our
[36:59] children with fentanyl, sabotaged our
[37:01] critical infrastructure, strangle our
[37:03] supply chains. America has a positive
[37:05] sum spirit. No country did more for
[37:07] Chinese prosperity than America. So why
[37:10] has no country done more to undermine
[37:11] America than China? For the CCP, it is
[37:14] not enough for China to prosper. America
[37:16] must fall. The Chinese have had their
[37:19] choice. Now we must make ours. This is
[37:21] how we respond in the economic warfare
[37:23] thrust upon us. And so listen,
[37:30] let me make this point.
[37:32] China has been kicking our ass in the
[37:36] same field of manufacturing real stuff
[37:41] for 25 years.
[37:44] Okay?
[37:47] Why all of a sudden is it a problem now?
[37:50] Think about that for one second, guys.
[37:54] China didn't take a rare earth lead last
[37:56] month or last year or last term or last
[38:00] decade.
[38:02] They've been kicking our ass for 25
[38:06] years and we supported it. We told them
[38:09] to do it because this is how fiat works.
[38:13] We say we'll print the dollars. We'll
[38:15] give them to you. You give us real
[38:17] stuff. So, we are funding their ability
[38:20] to build the strongest manufacturing
[38:22] base in the world. And we are
[38:24] undermining our ability to do anything
[38:27] outside of hyper financialize and create
[38:29] all sorts of fancy derivative financial
[38:32] products on Wall Street and finance
[38:34] deficits in Washington. That is policy.
[38:38] That's how it works. If you don't like
[38:40] that, then you don't print money. Then
[38:43] you don't be the world reserve currency.
[38:45] So why after 25 years is it a problem
[38:48] now?
[38:51] Because when China disrupted the middle
[38:54] of America and crushed real wages in
[38:57] America
[38:59] and pushed all the jobs to the coast,
[39:01] you're either an engineer in California
[39:02] or a you're a financeier and a banker in
[39:05] Wall Street. No in between.
[39:09] None none of these guys had a problem.
[39:11] No one in Washington had an issue with
[39:12] that. No one on Wall Street had an issue
[39:14] with that. They were all getting their
[39:15] bonuses.
[39:17] What's the problem now? Oh, it's because
[39:20] China's finally disrupting you. That's
[39:23] the problem. And that's the problem I
[39:24] have with these people. Honestly, [ __ ]
[39:27] you.
[39:30] Because your issue is not that China has
[39:33] disrupted and disintermediated the
[39:36] American individual, the average
[39:38] American, the working-class American,
[39:40] the lowerass American. Your issue is
[39:42] that they're coming for you now for your
[39:45] stock on the NASDAQ.
[39:49] They're not taking their trade surplus
[39:51] and juicing your multiple and juicing
[39:52] your stock. They're buying gold. And now
[39:55] you're upset. Give me a break.
[39:59] Give me Does this make me pro-China? No.
[40:02] This makes me This makes me a man of the
[40:04] people. Give me a break.
[40:08] If they can't print productivity, they
[40:10] print narratives.
[40:13] Ask these people. It took you 25 years
[40:16] to get upset.
[40:25] This is his Wall Street Journal op-ed.
[40:28] Um, this will be some long readings, but
[40:30] we got I mean, we got to learn this
[40:33] stuff, man. This is the podcast for the
[40:35] truth. China is already waging war
[40:38] against us in many ways. These include
[40:40] withholding rare earth minerals,
[40:41] attempting to smuggle crop diseases into
[40:43] the United States to harm our food
[40:45] supply, prepositioning electronic
[40:47] devices to [ __ ] American
[40:48] telecommunications and emergency
[40:50] response systems, and subsidizing the
[40:52] production and export of chemicals used
[40:54] to manufacture fentanyl. Beijing's goal
[40:57] is to weaken us while mobilizing a
[40:59] future showdown that we can lose.
[41:02] China's military aims aren't secret. The
[41:05] People's Liberation Army does target
[41:07] practice on mock-ups of US aircraft
[41:09] carriers. People's Liberation Army
[41:12] Colonial Koi Lang, sorry I can never
[41:15] pronounce these names, wrote the book
[41:16] Unrestricted Warfare in 1999, stating
[41:19] exactly this. US corporate and
[41:21] Washington's elites still let China into
[41:23] the WTO, making past and present US
[41:26] corporate and baitwe elites guilty of
[41:29] native dogma or worse. This is
[41:31] commentary from Luke Roman.
[41:34] I'm [snorts] not I'm actually going to
[41:36] change my mind. I'm not going to read
[41:37] the whole thing. The the the point it's
[41:40] just this is this is pissing me off. His
[41:42] his op-ed goes on to explain China's
[41:45] after us. We're so nice. We're so good.
[41:47] We're the great guys. We've never done
[41:49] anything to them. They're undermining
[41:52] us. And this is an issue and it's a
[41:54] recent issue. He goes on to say that
[41:56] this is wartime. Okay, I highly
[41:59] recommend Luke Groman's writings on this
[42:01] topic. Luke is the best in the industry
[42:04] by far. Okay, go check out Luke. It's
[42:07] It's not even close in my opinion.
[42:11] He goes on to say, and you guys can
[42:12] obviously go read the Wall Street
[42:13] Journal oped. Um, I'm looking at the
[42:15] clock. It's We're already at the 43m
[42:17] minute mark, so I can't read it to you.
[42:19] Um, he goes on to to to to make the case
[42:21] that you already know he's going to
[42:22] make. We need wartime financing. He goes
[42:25] on to say, "This isn't going to be
[42:26] cheap.
[42:27] Look at the last line down here at the
[42:29] bottom. I will read that. None of this
[42:31] will be easy or costf free.
[42:35] You don't say so, Captain Obvious. In
[42:38] fact, all of this will probably send
[42:40] Bitcoin to a million dollars a coin.
[42:43] Yeah. No [ __ ]
[42:46] So, you're seeing these terms now
[42:48] frequently. Operation Warp Speed,
[42:50] wartime financing. This won't be easy.
[42:53] This won't be free.
[42:56] Same [ __ ] They're the bad guy. We're
[42:58] the good guy.
[43:06] And listen, do I think the US should
[43:08] re-industrialize? Yeah. Do I think the
[43:10] US should stop being the world reserve
[43:12] currency or at the very least debase its
[43:14] debt? Yeah, 100%. Do I think the US is
[43:18] doing the right thing and leaning into
[43:19] Bitcoin, leaning into digital? We are
[43:22] the country of innovation, of the
[43:24] internet, of technology. Yeah, 100%. Do
[43:27] I think it's right to gaslight the
[43:29] American people and say we had no we had
[43:33] no problem when they were taking your
[43:34] jobs, when they were crushing your real
[43:36] wages, when we were using China to
[43:39] strengthen the dollar, to strengthen
[43:41] strengthen Washington, to strengthen
[43:42] Wall Street. China was paying my bonus.
[43:45] I had no problem when they were doing
[43:46] that. But now I have a problem.
[43:50] Someone has to call out the [ __ ]
[43:52] Give me a break. This is why we Bitcoin.
[43:55] So that I don't have to sit around and
[43:57] buy into this garbage. Absolute
[44:00] incomplete garbage. And by the way, this
[44:03] guy sounds pretty angry. Not me. I sound
[44:05] angry, too, but I think my anger is
[44:07] justified. This guy, I think, is in the
[44:09] anger. The the CTO of Palunteer, I would
[44:12] say, is in the anger stage of grief. I
[44:15] would say Bessant
[44:17] has left anger and he's entered
[44:20] bargaining.
[44:21] But you guys look at where we're going.
[44:24] I bring this slide up every week. We all
[44:27] the US started in denial. We're going to
[44:29] cut our way out with Doge. We're going
[44:31] to implement tariffs and we're going to
[44:32] kill China. We got the leverage. We're
[44:34] America. We've got Elon Musk.
[44:38] Elon all of a sudden starts tweeting
[44:39] that our president is a pedophile.
[44:42] The CTO of Palanteer all of a sudden is
[44:44] upset. China is killing us and murdering
[44:47] us out of nowhere.
[44:50] And then Bessant starts to bargain.
[44:52] We're going to make a deal. It's all
[44:55] good. Take the tariffs off the board. No
[44:57] problem. No problem. And then comes the
[45:01] depression. Oh, wait.
[45:03] Our only way out is to print.
[45:06] How are we going to get reelected?
[45:09] How are we going to explain this to the
[45:10] American people?
[45:13] We spent years going to war in the
[45:15] Middle East. We spent $9 trillion. What
[45:18] did that get us? Who's going to realize
[45:20] that loss?
[45:22] And then there'll be acceptance.
[45:25] We're the US, land of the free, home of
[45:28] the brave, innovators, technologists.
[45:31] We're going to use tools like the
[45:33] internet, AI, and Bitcoin.
[45:37] and we're going to build the future
[45:38] everyone wants to be a part of through
[45:40] distributed networks, through
[45:41] technology, through cryptography.
[45:44] We'll accept it and that's a great
[45:46] place. We don't need to bully everybody
[45:49] with the world reserve currency. That's
[45:51] not our place. We'll produce our own
[45:53] stuff. We'll get back to proof of work
[45:55] and we'll live through our founding
[45:57] principles and we'll accept it. But I
[45:59] would say depending on who you're
[46:00] talking to, we're all past the denial,
[46:02] right? The economist says China's
[46:04] winning. the Palunteer CTO. Why is he so
[46:07] If China wasn't a threat, do you think
[46:09] he'd be all wound up? Probably not. And
[46:12] this guy's the CTO of Palunteer. I'd say
[46:14] he's been in some classified meetings,
[46:16] don't you? He probably knows some stuff
[46:18] you and I don't know. Don't you think
[46:20] so? I do.
[46:23] That guy sounds angry. That guy's like,
[46:26] "God damn it. I was supposed to This job
[46:29] was paying me a big bonus. My equity was
[46:31] vesting. Now all of a sudden, I got to
[46:33] deal with China.
[46:35] cut off their [clears throat] fentanyl.
[46:37] He sounds angry. Bestins bargaining.
[46:41] We'll get to acceptance. We'll get
[46:43] there. They're going to print their way
[46:45] through depression.
[46:47] Sad boys going to have to print. We'll
[46:50] continue to check on the stages of
[46:51] grief. And this,
[46:54] you know, Bessant goes out and tweets,
[46:56] "Gold price rising has helped us
[46:58] substantially,
[47:00] guys.
[47:02] acceptance, bargaining. This is not
[47:04] anger anymore. This is not anger
[47:07] anymore. And this quote or this tweet,
[47:10] excuse me, we run an annual $900 billion
[47:12] deficit with China. China is receiving
[47:14] $900 billion. And we can clearly see
[47:17] they are less inclined to recycle those
[47:19] dollars into US treasuries.
[47:22] Instead, they sell US dollars to buy
[47:24] gold, bidding up the gold price. China
[47:27] doesn't run an $800 billion deficit with
[47:30] anyone surpluses. In fact, therefore,
[47:32] there is no country out there looking to
[47:34] sell $800 billion of Juan to buy gold.
[47:38] Therefore, the gold one gets bid up less
[47:41] than the gold dollar price does. Voila.
[47:44] Over time, you've just set a new forex
[47:47] rate for dollar one. One, that means a
[47:50] lot weaker dollar and a lot stronger
[47:53] one. Guys, the great repricing
[48:00] reality is getting repriced in gold and
[48:02] Bitcoin terms. The one is too weak. The
[48:05] dollar's too strong. Gold and Bitcoin
[48:07] are too cheap. Bitcoin specifically is
[48:10] way too cheap.
[48:13] Would you rather own the Bitcoin network
[48:17] or Nvidia?
[48:19] It shouldn't be a question. The great
[48:22] repricing. Okay. Next, the battle of
[48:25] reserve collateral rages on. So, when we
[48:27] think about collateralizing the
[48:29] financial system, what's going to
[48:30] interpin all of us trading our
[48:32] collective time and energy? Well, the
[48:34] fact that JP Morgan came out and said
[48:36] they're going to allow Bitcoin as
[48:37] collateral is a massive deal. This is
[48:39] the biggest bank in the US, the most
[48:41] nationalized bank in the United States
[48:43] of America. They're now treating Bitcoin
[48:46] as collateral, guys. That's a huge deal.
[48:47] Collateral means the only other real
[48:49] forms of collateral at scale in the
[48:52] world have been US treasuries and gold
[48:55] primarily. I mean obviously there's
[48:57] other stuff but this is huge. This
[48:59] positions Bitcoin the way Black Rockck
[49:02] JP Morgan and the US government. Think
[49:04] about it. Black Rockck their most
[49:06] successful ETA ETF ever. The United
[49:08] States has a strategic Bitcoin reserve
[49:10] and now JP Morgan is treating Bitcoin as
[49:13] collateral. Don't let these headlines
[49:15] pass you by without appreciating them.
[49:17] from Luke the Goat. It's as if the most
[49:19] politically connected, systemically
[49:21] important financial institution was told
[49:23] the US fiscal situation has reached the
[49:25] point where they know they'll need
[49:27] collateral that has a more flexible
[49:29] value. US treasuries can't rise much
[49:33] beyond 0% rates. Gold and Bitcoin can
[49:36] 100%. And this morning, just in, IBM
[49:40] launches new Bitcoin and crypto service
[49:42] for US institutions. IBM's digital asset
[49:44] haven will offer custody and payments
[49:46] for US businesses and governments by the
[49:49] end of the year.
[49:52] The battle for collateral rages on huge
[49:57] developments, guys. Next chapter, trade
[49:59] settlement goes neutral.
[50:03] Unfortunately,
[50:05] we've issued more sanctions. And on the
[50:08] back half of how we're good guys, we do
[50:10] nothing wrong. we're peaceful and
[50:12] everyone else is attacking us. Why are
[50:13] you so mean to someone who's so good? I
[50:17] find it funny that that same week we try
[50:19] and sanction a country again and we
[50:21] sanction them for oil, which is just
[50:23] like, you know, the world runs on fossil
[50:27] f. The rule the world is it's it's all
[50:30] about commercializing energy from the
[50:32] sun. That's the story of humanity. And
[50:34] one of the latest iterations of that is
[50:36] oil. Okay? So if you sanction someone to
[50:39] get oil, they're not just going to die.
[50:41] They're just going to get oil with
[50:43] something else.
[50:45] So bizarre sanction, but anyway, deep
[50:48] breath. I read Treasury Scott Bessant.
[50:51] Uh, now is the time to stop the killing
[50:54] and for an immediate ceasefire, which by
[50:56] the way, of course, I agree with that. I
[50:57] want no human violence. I see there's I
[51:00] don't know if there's ever a need for
[51:02] for justified violence at scale. Given
[51:04] President Putin's refusal to end the
[51:07] senseless war, Treasury is sanctioning
[51:09] Russia's two largest oil companies that
[51:11] fund the Kremlin's war machine. Treasury
[51:13] is prepared to take further action if
[51:15] necessary to support President Trump's
[51:17] effort to end yet another war. We
[51:19] encourage our allies to join us in and
[51:21] adhere to these sanctions.
[51:25] Yeah. Um,
[51:27] this came out of uh a meeting of Putin
[51:30] and other nation leaders uh around the
[51:34] same time. I want you guys to listen to
[51:36] this.
[51:40] They are printing money.
[51:43] They are not manufacturing anything at
[51:46] all. It's printing money.
[51:48] And this has been one of their weapons
[51:51] globally. The monetary system, the
[51:54] global motor system controlled by dollar
[51:56] and euro has been used. Sanctions here,
[51:59] sanctions there, sanctions there,
[52:01] grabbing this uh account, grabbing that
[52:04] account has been one of their tools.
[52:06] This is not going to continue
[52:08] indefinitely.
[52:10] And we need uh
[52:13] uh a new financial architecture
[52:16] globally. Not controlled by euro, not
[52:19] controlled by by by the dollar, not
[52:21] controlled by by other currencies.
[52:24] They are
[52:28] >> Yeah. I mean,
[52:30] direct quote, they are printing money.
[52:32] They are not manufacturing anything at
[52:34] all. This has been one of their weapons
[52:36] globally, the monetary system. We need a
[52:39] new financial architecture globally, not
[52:41] controlled by other currencies, not
[52:43] controlled by the dollar.
[52:47] I mean, neutral reserve assets will re
[52:51] reign supreme in this new monetary era.
[52:54] I mean, using dollar sanctions like this
[52:57] on things like oil,
[52:59] I mean, guys, it's hard to say like,
[53:01] "Hey, you're being mean about rare
[53:03] earths, but then by the way, here's
[53:04] sanctions on oil." And we're just
[53:07] really, it's interesting because if you
[53:09] wanted to put like a conspiracy hat on,
[53:13] are we doing it on purpose to like
[53:15] escalate ddollarization? Because
[53:18] obviously what is Russia going to do?
[53:20] Just not get oil, not sell oil, not
[53:23] export oil?
[53:26] No. What? It'd be like, I'm sanctioning
[53:29] you from breathing and having water. Oh,
[53:31] okay. I'll just voluntarily kill myself.
[53:34] No, I'll just get water and breathe with
[53:37] another with gold with another currency.
[53:40] Bizarre. Bizarre. But the point is
[53:43] neutral trade trade is going neutral.
[53:47] Global trade is going neutral clearly
[53:49] through gold and bitcoin. So this
[53:51] headline hit I think the same day.
[53:55] Russia authorizes Bitcoin for foreign
[53:57] trade and major policy shift.
[54:00] Russia legalizes Bitcoin for foreign
[54:02] trade amid sanctions, boosting crypto
[54:05] adoption, and aiming for economic
[54:07] independence.
[54:09] So, I'm I'm not I'm not saying that
[54:12] Russia is now settling all their oil
[54:13] trade in Bitcoin, but guys, like it the
[54:16] trend is very clear. The post 1971 is
[54:20] over. Okay, next chapter. Break the
[54:23] money. Oh jeez. Break the money, break
[54:25] the world.
[54:27] Um, so
[54:29] I saw a few things. A lot of people have
[54:31] been, you know, prediction markets.
[54:34] Robin Hood's adding prediction markets.
[54:36] I found this fascinating. Um, this
[54:38] tweet, the convergence between
[54:40] finance/investing and literal gambling
[54:43] continues a pace. And the news article
[54:46] reads, "Wall, Las Vegas. If you thought
[54:50] finance was already starting to look
[54:52] like betting, boy, have we got some news
[54:54] for you. Sports betting giant DraftKings
[54:57] said Tuesday that it was acquiring a
[54:59] federally regulated derivatives
[55:01] exchange, Railbird, as part of its entry
[55:04] into the world of prediction markets.
[55:06] Declan Hardy reports the company plans
[55:09] to launch DraftKing predictions where
[55:11] traders will be able to wager on
[55:13] realworld outcomes across finance,
[55:16] culture, and entertainment in the coming
[55:18] months. Its entry into the space is the
[55:20] latest sign of the growing buyin around
[55:22] prediction markets, a space that has
[55:24] already attracted new investment from
[55:26] the New York Stock Exchange's parent
[55:28] company CME Group and FanDuel.
[55:32] And you know this comment from Luke, and
[55:35] you guys have heard me rant about this
[55:37] enough, but Luke said, "View the
[55:41] convergence of finance and literal
[55:43] gambling now as then. The central bank
[55:46] has been prepared to the dupe of
[55:48] borrowers.
[55:51] When you print money,
[55:54] everyone is a speculator whether they
[55:57] know it or not.
[55:59] Okay? The way this works, money is
[56:02] supposed to be a reflection of your
[56:05] contributions to society, right? Your
[56:08] time and energy that you spend. That's
[56:09] what money is supposed to be. So you get
[56:12] up, you go to work, you're supposed to
[56:14] get money as a proportional
[56:17] representation of the value you created
[56:19] that day, that week, that pay cycle,
[56:21] that year. So money, therefore, is
[56:23] supposed to represent your time, your
[56:26] energy, your effort, your labor.
[56:28] In theory, a rich person has contributed
[56:32] a lot to society and a poor person has
[56:35] not contributed much. in theory.
[56:38] Now, I say all this to say when you
[56:40] print money and you debase the money,
[56:44] you make it weaker over time because
[56:46] you're diluting it. You're therefore
[56:49] diluting and debasing the people
[56:50] themselves, their effort, their time,
[56:53] their energy.
[56:55] And so, it makes everyone a speculator.
[56:57] It's no longer good enough to just be a
[56:59] doctor, to just be a carpenter, to just
[57:02] be a plumber, to just be a teacher, to
[57:04] just be a therapist. You have to be all
[57:07] those things, whatever you do every day,
[57:09] and speculate. You have to do your job
[57:12] and figure out a way how to persist your
[57:14] wealth. So, everyone becomes a gambler.
[57:16] Everyone becomes a speculator. The
[57:18] notion that there's investing in
[57:20] gambling, it's all the same thing.
[57:23] It's all the same. You have to do open
[57:25] heart surgery and then get home and
[57:27] understand Japanese central bank policy,
[57:29] monetary policy. You have to be a
[57:32] teacher and then come listen to this
[57:33] show and try and understand what China
[57:35] just did. It's ridiculous. That's the
[57:37] beauty of Bitcoin. Bitcoin protects your
[57:39] time and energy. It gives it back to
[57:41] you. All you got to do is stay humble
[57:43] and stack sats.
[57:45] Hopefully, you listen to this show and
[57:46] me screaming for entertainment, not out
[57:49] of a necessity to persist the work you
[57:52] did earlier today.
[57:55] And so the fact that we're seeing a
[57:57] convergence,
[57:58] investing,
[58:01] speculating,
[58:02] gambling, it's all the same thing. Going
[58:05] to the casino and putting it all on red
[58:08] or entering a prediction market or
[58:10] picking penny stocks is all the same
[58:12] thing.
[58:15] Printing money destroys society. Because
[58:17] here's the thing, it makes all the
[58:19] doctors worse doctors. It makes all the
[58:22] teachers worse teachers because you
[58:24] spend half your time thinking about your
[58:26] curriculum for the 5-year-olds that
[58:27] you're teaching the future of the world,
[58:30] the kids you're teaching. You're
[58:32] spending half your time on that and the
[58:33] other half trying to speculate so that
[58:36] you can own a home.
[58:42] Now, this is truly
[58:44] terrifying and disgusting, but let's
[58:48] listen to uh the CEO of Only Fans.
[58:54] >> And we've got some great data that's
[58:55] sort of going to be shown throughout
[58:57] about the rapid rise that we're seeing
[58:58] in terms of how profitable because
[59:01] ultimately a lot of people I think don't
[59:03] always realize that only fans is British
[59:05] in terms of the way it was founded by a
[59:07] family in Essex. I think it was back in
[59:09] what 2016. Then it has a Ukrainian
[59:13] American billionaire who's UK based who
[59:15] now owns it key. But I think all the
[59:18] press coverage I've seen of late not
[59:20] just about certain of the content
[59:21] creators, but it was also about how
[59:23] profitable each and every one of the
[59:24] people that works for you more. You are
[59:26] more more successful in that way than
[59:27] any other big tech company, Nvidia for
[59:30] example.
[59:30] >> Um yes, thank you. I mean it's nice to
[59:33] get recognized for that I think for for
[59:34] the business and for our employees. Um,
[59:37] we operate on the basis of a very lean
[59:39] business model and we do it
[59:40] deliberately. Every hire is very
[59:42] important and very carefully considered.
[59:44] But the thing that I'm probably most
[59:45] proud of out of those figures actually,
[59:48] you know, it's great that the company
[59:49] does well, but what's more important for
[59:51] us is actually that we've paid out 25
[59:53] billion to creators since 2016. So
[59:56] there's not very many tech companies
[59:57] that can talk about creating wealth for
[60:00] others um rather than just profitering
[60:02] essentially. Um, and so for us as a
[60:05] company, that makes us very proud when
[60:06] we talk to our content creators and we
[60:08] understand the difference that it's made
[60:09] to their lives, the way that they can
[60:11] continue to challenge themselves or
[60:13] build their fan base or try something
[60:15] new, be a bit disruptive, be a bit, you
[60:17] know, reinvent themselves in some way.
[60:20] Um, and so for us as a business,
[60:21] providing a platform and enabling
[60:23] creators to have the tools to do that
[60:25] and to connect with their global fan
[60:27] base is is really the thing that makes
[60:28] us very proud. You're right. We I always
[60:30] joke we have a we're a British company
[60:32] with a very American personality. Um so
[60:34] everyone kind of
[60:37] >> I can't listen any more of that.
[60:42] The fiat world is so disgusting,
[60:46] guys. It's so disgusting.
[60:54] When someone says, "Is fiat really
[60:58] devastating society?"
[61:00] What's a good example? Ask the father
[61:06] of a girl
[61:09] who became an Only Fans model porn star
[61:12] when she was 18 years old.
[61:17] Okay, but that's just one person. No,
[61:20] $25 billion
[61:29] because the youth is screwed. You guys
[61:32] want to know? And I'll get into this in
[61:34] a second. My generation screwed.
[61:38] The most pukeworthy, disgusting reality
[61:42] is that you have a better chance owning
[61:44] a home, registering an Only Fans account
[61:48] than working manual labor, and creating
[61:50] real things in this country. Pathetic.
[61:52] Disgusting. And fiat currency did that.
[61:55] That's what they won't tell you. They'll
[61:57] tell you it's China's fault. They'll
[61:59] tell you we ran a surplus in September.
[62:02] They'll tell you tariffs are going to
[62:04] fix everything. What they won't tell you
[62:06] is they're pushing your daughter
[62:09] to do porn
[62:12] as opposed
[62:14] to contribute nobly to society
[62:23] and I have no pro listen I'm a free
[62:27] market guy I have my own opinions on
[62:30] what I think is healthy what I think is
[62:32] normal what I think is worthwhile to
[62:35] spend my time on. Okay, I personally
[62:39] only fans, all that stuff, not my thing.
[62:41] But I think people should be able to do
[62:43] what they want. What kills me is it's
[62:46] 18-year-old kids.
[62:52] Is that these people are doing it for
[62:53] money so they can afford a home so they
[62:56] can have a lifestyle that they dream of.
[63:00] you know, if you're an adult, if you're
[63:01] a grown woman, you're a grown man, and
[63:03] that's the lifestyle you want. I support
[63:05] that in the free market aspect. I I do
[63:08] not do not advise and support that
[63:10] personally by any means, but it's just
[63:13] pathetic that you have these little kids
[63:16] on this website. It's it's this is
[63:22] fiat in its worst form.
[63:25] Don't be a doctor. Don't be a teacher.
[63:27] Don't be an artist. Be an Only Fans
[63:30] creator.
[63:32] You can't help but want to throw up.
[63:36] If fixing money can fix the world, then
[63:39] broken money breaks the world. There's
[63:41] no in between.
[63:44] Your money's either sound enough to
[63:45] support prosperity or it's sick enough
[63:49] to support an ugly, ugly, ugly world.
[63:59] On the topic of the youth getting a raw
[64:03] deal, and that's putting it lightly,
[64:04] take a look at this.
[64:07] The tweet reads, "This is probably the
[64:09] most under reportported story on the
[64:11] planet. It's why birth rates keep
[64:13] falling. This is the boomer ponzi in
[64:16] motion. We need younger politicians. The
[64:19] unfortunate part is it always leads to
[64:22] more money printing to pay off the
[64:23] boomer debts from which they extracted
[64:25] from the earnings of their children.
[64:28] Now what this chart is showing in the
[64:31] green it says social security Medicare
[64:34] outlays as a share of US GDP and in the
[64:37] blue homeowner equity as a share of US
[64:41] GDP. So, what this is showing is social
[64:44] security,
[64:46] basically boomer paychecks up and to the
[64:49] right,
[64:51] asset holders, people that own real
[64:53] estate. So, primarily the boomer class.
[64:55] And listen, a lot of you guys say, "I'm
[64:57] a boomer. I'm not a bad guy. Jack hates
[64:59] boomers." Listen, guys, I don't. But
[65:02] kids look up to me. There's a lot of
[65:04] kids that see me at these conferences,
[65:06] see me at the grocery store.
[65:09] They relate to this. They they they
[65:13] these kids shouldn't be going on Only
[65:14] Fans, man.
[65:16] So, don't take this [ __ ] personally.
[65:18] Give me a break with this. Come on. I'm
[65:19] a boomer and I'm not Give You're an
[65:21] adult.
[65:23] Give me a break.
[65:25] I'm talking to the kids out there, okay?
[65:27] Give me a second because the white line
[65:31] is the average per capita wage as a
[65:34] share of GDP. So people doing real work,
[65:38] real work, going out, working for
[65:41] somebody, producing things, writing
[65:43] software, selling something valuable to
[65:45] customers
[65:47] going down. The people that just own
[65:50] assets and collect paychecks from the
[65:51] government going up. And you guys want
[65:54] to know why Mami is going to get elected
[65:56] in New York?
[66:01] My generation and the younger
[66:02] generations got the raw deal.
[66:07] You want to know why your son and your
[66:09] daughter is signing up for Only Fans and
[66:10] voting for Mandami?
[66:15] Fiat. That's why. If you don't want to
[66:18] believe it, you want to go read other
[66:19] articles and listen to other podcasts
[66:20] that can justify whatever makes you feel
[66:22] better about yourself. You could do
[66:24] that. It's not going to be helpful. It's
[66:26] possible. I'll tell you the truth. Fiat
[66:29] Fiat did that.
[66:35] It's ridiculous, man. It's ridiculous.
[66:40] This tweet reads, "I'm not a gold or
[66:42] Bitcoin or equity pumper of any sort. I
[66:44] just see these as an attempt to survive
[66:46] a monetization problem that has no real
[66:48] solution. A quick review of US
[66:50] demographics makes the lack of further
[66:52] potential growth pretty evident as the
[66:54] vast majority of net population growth
[66:56] since 2000 has been and will continue to
[66:59] be among 55 plus year old population
[67:01] with incredibly low LFP percentage. And
[67:05] the rationale for interest rate cuts to
[67:07] incent substitution of even greater
[67:09] leverage/debt amid the slowing real
[67:12] growth. It's just math. Buckle up in
[67:14] whatever means seem appropriate.
[67:18] And the point here, I'll just show one
[67:20] of these graphs.
[67:22] The orange is 55 plus year olds
[67:28] working
[67:30] and the blue is 22 to 54.
[67:33] Oh, it's so depressing to go through
[67:35] this. 22 to 54. For those listening that
[67:37] can't see, the charts flattened out. 55
[67:41] plus is growing like a rocket. It looks
[67:43] like a Bitcoin chart.
[67:51] It's tough. And listen, man, I you know,
[67:53] a lot of the 55 plus year olds, I'm
[67:55] giving you guys hugs at these
[67:56] conference, too. I love you guys, man.
[67:58] And so, so many of you are great
[68:00] parents, right? Great parents, great
[68:03] Bitcoiners, great civilians, great
[68:05] leaders. And so, none of this is
[68:07] personal. It's just like,
[68:10] man, it's all love from me. It's all
[68:13] love. I already know I'm going to get
[68:15] comments from the boomers like, "You're
[68:17] so mean to me. I'm not trying to be I'm
[68:20] not trying to be mean to you, man.
[68:23] It's just someone's got to stand up for
[68:25] these kids, man. That's just the reality
[68:27] of the situation.
[68:29] Someone's got to stand up for these
[68:30] kids. Tell them it's not their fault,
[68:33] but that we're going to hang in here and
[68:34] we're going to figure it out for them.
[68:44] All right,
[68:46] one more from Tyler. Welcome to Y
[68:48] America. There's only one way out of
[68:50] this. Quote, "We have written volumes on
[68:53] the dangers of accumulating sovereign
[68:55] debt ever since the GFC, but those
[68:57] warnings went unheard because interest
[68:59] rates were so low. Over the course of
[69:01] the current decade, global sovereign net
[69:03] interest expense is projected to triple
[69:05] from 1.3 trillion in 2020 to 3.9
[69:08] trillion in 2030. Consider the following
[69:11] charts. On the left, we note that global
[69:14] sovereign debt was the third largest
[69:16] segment of global debt 15 years ago,
[69:18] behind financial and non-financial
[69:20] corporate debt, but ahead of household
[69:21] debt. But after doubling over the last
[69:24] 15 years, sovereign debt is now the
[69:27] largest segment of total global debt,
[69:29] exceeding 101 trillion dollars. And the
[69:32] right-h hand chart shows that the
[69:34] current level of advanced economy's
[69:35] gross government debt relative to GDP is
[69:38] on track to match two century high using
[69:41] the Reinhardt and Rogoff historical
[69:43] analysis as a benchmark.
[69:47] How can I distill this point simply? The
[69:50] point is pretty clear.
[69:53] We used to create a bubble in housing.
[69:55] We used to create a bubble in private or
[69:59] public company corporate debt. The
[70:02] bubble is now at the nation state level.
[70:05] The bubble is now in the bond market.
[70:06] The biggest debt bubble is at the nation
[70:09] state level.
[70:11] That's why he says, "Why America?"
[70:17] That's why he says, "Why America?" and
[70:20] appreciate the times we're living
[70:21] through, guys. Appreciate the times
[70:23] we're living through. All right,
[70:26] let me uh
[70:28] let me get some water real quick. That
[70:30] was a depress that was a that was a
[70:31] depressing section. Let me get some
[70:32] water and I'll give you some cool
[70:34] updates on strike.
[70:40] [snorts]
[70:52] Okay, strike. So, this went super viral,
[70:57] which I found hilarious and endearing
[70:59] because I was just [ __ ] posting on
[71:01] Noster and I didn't know that anyone
[71:03] would really read it outside of, you
[71:05] know, the people on Noster. But, um,
[71:09] this is from Bitcoin News. New Jack
[71:11] Malers. By the way, my my last name for
[71:13] those that care is pronounced Malers. I
[71:15] don't really care when people
[71:16] mispronounce it, but some people do. So,
[71:19] in case it's relevant to you, Malers.
[71:21] Jack Malers reveals that Strike is
[71:23] building a BTC backed line of credit
[71:26] that lets users borrow fiat in real time
[71:28] to make things like lightning payments
[71:30] or pay bills without selling their
[71:31] Bitcoin. Quote, "It works just like a
[71:34] credit card, but secured with Bitcoin."
[71:37] Now, it's screenshotting me saying, "I
[71:40] like owning as much Bitcoin as possible
[71:42] and no fiat as well." So, check this
[71:44] out. We're working on a line of credit
[71:46] product that will in real time extend a
[71:48] line of credit against your Bitcoin to
[71:50] make lightning payments, pay bills, etc.
[71:52] This way, you don't have to part with
[71:54] your Bitcoin or own any fiat to live in
[71:57] today's society. You hoard bitcoins and
[71:59] you borrow fiat paper for the payments
[72:01] you need to make. You can manage the
[72:03] line of credit and pay it down with your
[72:04] direct deposit or any other funding
[72:06] method. It works just like a credit card
[72:08] today, except it's [clears throat]
[72:09] secured with Bitcoin, so the terms and
[72:10] everything else about it is way better.
[72:12] This will allow living on Bitcoin and
[72:14] speculative attacking fiat at a massive
[72:16] scale. A true suite of Bitcoin banking
[72:18] services that feel natural and easy. I
[72:21] cannot wait to launch everything we're
[72:23] building. So, I just wanted to expand
[72:24] upon this, give you guys some of the
[72:26] inside ball here.
[72:28] uh you know,
[72:30] don't be like Bitcoin News and clip this
[72:33] and tweet it as an announcement or if
[72:36] you are Bitcoin News. I do like um you
[72:39] guys a lot. I read your stuff and uh
[72:41] I'll support it. If you do, I'll support
[72:43] it. Um whatever. If this gets clipped
[72:46] and it becomes an announcement, it's
[72:48] more of a compliment than anything else.
[72:49] [ __ ] it. I appreciate it. But I just
[72:51] want to talk to you guys about how I'm
[72:52] thinking about the product. So here
[72:54] here's my ideas. So, you know what what
[72:56] we've seen with lending? We've lent out
[72:59] hundreds of millions of dollars. We're
[73:01] going to cross a billion soon. And a lot
[73:04] of these are people borrow against their
[73:06] Bitcoin to buy more Bitcoin. So, that's
[73:08] leverage. Some of these are people
[73:10] borrow against their Bitcoin to get a
[73:11] car, to buy a house, to start a
[73:13] business. But also, some of these people
[73:16] are trying to treat it like a line of
[73:18] credit. What do I mean by that? Well,
[73:20] you know, if the only loan you can get
[73:22] against your Bitcoin is a 12-month loan,
[73:25] then you have to take out the amount of
[73:27] cash against your Bitcoin that you're
[73:29] going to need for the 12 months. And a
[73:31] lot of the people don't want a 12-month
[73:33] loan. They just want a loan that can
[73:36] cover their next credit card bill or
[73:38] cover their dentist appointment or they
[73:39] need to fix their bathroom. And so my
[73:41] idea was, well, if someone has a certain
[73:45] amount of Bitcoin on the platform, let's
[73:47] say 25,000 Bitcoin, let's just give them
[73:49] a line of credit that goes up to 50% of
[73:52] their balance. So that would be
[73:53] $125,000.
[73:55] And so then, let's say their credit card
[73:56] is $4,000 that month. They have a
[73:59] mortgage payment of $2,000. And after
[74:01] the month is over, they've spent $6,000.
[74:03] When a bill comes in and is paid from
[74:05] Strike, Strike automatically in real
[74:07] time extends a line of credit and pays
[74:09] your bill for you and sends you a push
[74:10] notification like, "Hey, your mortgage
[74:12] was paid. Your line of credit just grew
[74:14] from $0 to 2,000. Hey, your credit card
[74:17] was paid. Your line of credit just grew
[74:19] from 2,000 to 4,000 and you've used X%
[74:23] of your line of credit against X amount
[74:24] of Bitcoin."
[74:26] and then your direct deposit comes in
[74:29] and you can pay off that line of credit
[74:32] and then the rest can go to stacking
[74:33] sats. So that way you're always buying
[74:35] Bitcoin. You're never selling Bitcoin.
[74:37] You're not taking out these massive
[74:39] loans because people get really scared
[74:40] like, "Oh, I'm taking out a huge loan.
[74:42] What if the price dips? What if I get
[74:43] liquidated?" But when I talk to
[74:46] customers, they're not worried about
[74:47] getting liquidated over a $6,000 line of
[74:50] credit against their Bitcoin. And that
[74:52] way you don't have to own tons of fiat.
[74:55] And that way you don't have to win any
[74:56] fiat. And that way your Bitcoin works as
[74:59] collateral to finance your everyday
[75:01] expenses. And it's a much better user
[75:03] experience.
[75:05] And you know, we obviously are also
[75:08] looking like should we wrap that and
[75:10] give you a credit card on top of it just
[75:11] so that you can spend the line of credit
[75:13] through the card itself. I'm not sure
[75:15] about that one yet. I'm looking into it.
[75:17] But this is a dream product for me
[75:20] because I have Strike hooked up. Strike
[75:22] allows, for those that don't know,
[75:23] Strike allows bill pay. So you can pay
[75:25] any bill with Strike and it allows
[75:27] direct deposit. So right now all my
[75:30] paychecks come in from Strike from 21
[75:32] come in autoconverted to Bitcoin 100%.
[75:34] So I stack SATs every other week with
[75:36] the work I'm doing for my companies. And
[75:39] then on top of that, I pay all my bills
[75:41] from Strike. But the dream for me would
[75:43] be I don't want to borrow 12 months in
[75:45] advance. I'm acrewing lots of interest
[75:46] that way. The dream would be, hey, if a
[75:50] bill comes in that I need to pay, it's
[75:52] pulling from my strike strike ex extend
[75:54] a little line of credit and then I can
[75:57] manage that line of credit whether I
[75:58] want to pay it off, whether I want to
[75:59] keep it rolling, whether I want to
[76:01] refinance it. But that way, it's a lot
[76:02] more manageable. It's not like one giant
[76:04] 12-month term. So, that's more like a
[76:06] consumer line of credit. So, we'll have
[76:08] 12-month term uh monthly fixed payments,
[76:11] 12-month term payment at maturity, line
[76:14] of credit, and then the last thing, now
[76:16] this is really new inside ball, but all
[76:20] you guys have been asking like, hey, I
[76:22] want interest on my cash. I want
[76:24] interest on my cash. I want interest on
[76:25] my cash.
[76:27] And it was weird to me because I'm like,
[76:28] I don't own fiat, so I can't really
[76:30] relate to this product. Like, people
[76:32] want interest on dollars. If you wa if
[76:34] you want performance with your savings,
[76:36] don't own dollars and get three% on
[76:38] them. Just own Bitcoin and get 50%. Why
[76:40] are you owning dollars if you want
[76:42] performance? But, you know, people say,
[76:44] "Rainy Day fund, I'm not ready to go all
[76:46] in on Bitcoin. You know, you've been in
[76:48] for 10, 13 years. I haven't." All
[76:52] reasonable. And at the end of the day,
[76:54] as a founder, you never argue. You're
[76:57] wrong. No matter what, the customer is
[76:58] always right. I work for you guys. So, I
[77:01] I can't relate as much as other
[77:03] products, but you're right. You're
[77:04] always right. You're never wrong. And
[77:06] so, I was thinking about this and my
[77:09] idea was, well, you know, banks pass
[77:14] down this interest like other companies
[77:16] that do do this product, they're passing
[77:18] down the Fed's overnight rate. So, like
[77:21] it probably used to be 4%. I I don't
[77:23] know these things. I'm just guessing.
[77:24] Like, it used to be 4%, probably it's
[77:26] three something. And it'll keep as the
[77:27] Fed cuts rates, it'll keep coming down.
[77:30] Meanwhile, us at Strike, we lend fiat
[77:35] against collateralized Bitcoin. It's the
[77:37] safest form of lending in the world
[77:39] because our loans are twice over
[77:42] collateralized. So, I'm not taking any
[77:44] risk because I'm lending money against
[77:48] collateral that I have I have more of
[77:50] than the outstanding loan at all times.
[77:52] It's 247 market. I protected. And so
[77:56] what I ask some of our customers is,
[77:58] hey, do basically the way I run strike
[78:01] lending is I go to people with fiat and
[78:04] say, hey, does anyone want 7 8 9% yield
[78:09] on your fiat because I'll turn around
[78:11] and I'll lend it, right? And obviously
[78:13] if they would give it to me for 3 4%,
[78:15] the strike terms would come down, right?
[78:17] Obviously.
[78:19] And my my idea was, well, why don't I
[78:21] include our customers in on that deal?
[78:23] Now, you don't have to do this, but if
[78:25] you want to, then Strike would be able
[78:27] to offer you something like seven,
[78:28] eight% yield on your fiat because you
[78:32] would be a part of all the other people
[78:36] that lend to Strike customers. Does that
[78:38] make sense? And so then the Strike
[78:40] product suite would be and it's not like
[78:43] your fiat goes away for 12 months and
[78:45] you you don't if you you want to
[78:47] withdraw it, we'll give it to you the
[78:48] next business day. You know, you want
[78:50] you say, "Hey, I I keep $100,000 in
[78:54] rainy day fund and I say I'll give you
[78:56] 8% yield on that. You get $8,000 a year
[78:59] on that and I'll pay you interest either
[79:02] daily, weekly, whatever we we we deem as
[79:05] reasonable." 8%. So, double what Sofur
[79:08] is. And that's unique to us because we
[79:11] are one of the biggest lenders in the
[79:14] world on on Bitcoin.
[79:16] Nobody else could do that for you.
[79:20] like you're not going to get that from
[79:21] the Fed.
[79:23] And it's even better because we're
[79:26] lending at it's twice collateralized. So
[79:29] it's not like we're doing
[79:29] uncolateralized risky [ __ ] And so then
[79:33] our product suite becomes you can buy
[79:35] Bitcoin at some of the cheapest rates in
[79:37] the world. No no fee DCA, no fee direct
[79:39] deposit, free withdrawals to cold
[79:41] storage. We have one of the best wallets
[79:42] in the world. Free onchain payments,
[79:45] lightning, lightning address, global
[79:47] remittance, all that stuff, free
[79:50] custody, secure
[79:52] global distributed multi-IG.
[79:54] You can borrow against your Bitcoin,
[79:56] 12-month term monthly payments, 12-month
[79:58] term payment at maturity. You have a
[80:00] line of credit, a dynamic in just in
[80:03] time line of credit potentially with a
[80:04] credit card on top of it. And if you do
[80:06] have any fiat, we'll give you seven,
[80:08] eight, whatever. we'll give you whatever
[80:10] percentage I'm giving the other
[80:12] institutional lenders. If you if you as
[80:14] my customer wants in on that deal, you
[80:18] should you deserve it. I will put you
[80:19] guys over the institutions. No problem.
[80:22] So then in that way, if a customer in
[80:24] Argentina wants to deposit USDT and get
[80:28] 8% on it, I will use that money to give
[80:31] the loan to the customer in New York
[80:33] that wants to start a restaurant. How
[80:35] cool is that?
[80:37] And then if the customer in Argentina
[80:39] wants their money back, I will take it,
[80:41] give it back to them, and I will take
[80:43] our institutional capital and and and
[80:45] replace that, right? And so it's really
[80:48] cool idea. And I know you guys ask me
[80:51] all the time, interest on cash, interest
[80:52] on cash, interest on cash. And I was
[80:54] like, man, the Fed's about to start
[80:56] cutting rates. You really want us to
[80:58] work with a bank to give you like 2%
[81:00] interest on your cash? Because it's
[81:02] three Fed cuts before this year's over.
[81:04] That's really what Bitcoiners want? That
[81:05] doesn't make any sense. But maybe what
[81:08] you guys want is like 7 8% because
[81:12] Bitcoin back lending is is that's the
[81:14] market. So, I don't know. You guys give
[81:16] me your feedback. Curious what you think
[81:18] in the comments. Obviously, if you don't
[81:19] want to do it, don't do it. Um, we
[81:22] haven't built it yet. It'd be very easy
[81:24] for us to build given all the
[81:25] infrastructure we already have. We've we
[81:27] already do institutional lending. The
[81:29] way our lending works is I work with
[81:31] institutions that say, "Hey, I'll give
[81:32] you a billion dollars if you give us
[81:35] 7%." Then I say, "Okay, well then I'll
[81:37] give my customer a 9% rate." Strike
[81:39] makes a little bit the institutional.
[81:41] And so instead of the institution, if
[81:43] one of you guys says, "Hey, you can take
[81:45] my rainy day fund until I want it back
[81:47] and you pay me the yield um and over
[81:50] collateralize loans, you know, maybe you
[81:51] guys deserve that deal, too." So, it's
[81:53] just an idea. I've run it by, you know,
[81:55] all my departments and stuff and uh we
[81:57] can certainly build that. So, um let me
[82:00] uh let me know what you guys if you if
[82:02] you like that one. But we're really
[82:04] cooking at strike. Like we are cooking
[82:06] cooking all caps. Very exciting. Very
[82:09] exciting. I mean, think about that
[82:11] product suite. buy Bitcoin, store
[82:13] Bitcoin, send and receive Bitcoin,
[82:15] borrow against Bitcoin, line of credit
[82:17] against Bitcoin, and then if you want
[82:19] like the best returns on your cash by
[82:23] accessing one of the coolest
[82:25] overcolateralized digital lending
[82:27] markets in the world through the best
[82:29] lender in the world. That's cool as
[82:32] [ __ ] That is cool as [ __ ] Okay, 21.
[82:37] Um,
[82:38] I was here in Lugano. I did a panel. Um
[82:42] Preston, the man. I love Preston. He is
[82:44] the best. Every time I see him, it's
[82:46] just good vibes. Preston was moderating.
[82:48] It was me, Adam Back, and Paulo. Uh and
[82:52] this clip, uh was for me. I'll just play
[82:55] it. I think it's like 30 seconds. I'll
[82:56] play it real quick and I'll give some
[82:58] comments.
[83:01] I feel similarly about Bitcoin Treasury
[83:03] companies. I mean, do we have a Bitcoin
[83:06] Treasury business? Absolutely. I love
[83:09] shorting the dollar and longing Bitcoin.
[83:11] It's an incredibly profitable. Yeah,
[83:13] someone gave me Yeah, that's a
[83:17] that's
[83:18] historically a tremendous business and
[83:21] to have the capital partners like a
[83:23] tether and a soft bank and to be able to
[83:24] do that at scale and access to the
[83:26] capital markets that's 100% part of our
[83:28] company.
[83:29] >> I feel similarly about Bitcoin treasury
[83:31] companies. I mean,
[83:34] >> okay, so that's a clip of me talking
[83:36] about how Yes. 21 is in the business of
[83:39] shorting the dollar and longing Bitcoin.
[83:41] In fact, we have over 43,000 Bitcoin.
[83:43] So, we're very long Bitcoin through, you
[83:46] know, my partnerships with Tether and
[83:47] Soft Bank. But, it it cut out a point I
[83:51] was making on how we're not actually a
[83:53] treasury company, or at least I don't
[83:55] think we are. So, this article went in
[83:57] more in depth about it. So, uh let me
[84:01] let me get in here. Uh,
[84:05] Michael Sailor does great service to
[84:06] humanity by going out, taking risk, and
[84:08] being brave, said Jack Mers. Quote,
[84:11] "What I what I will say about Micro
[84:13] Strategy and Michael, and we're friends,
[84:14] and he knows this, is that Michael does
[84:16] a great service to humanity by going out
[84:18] there, taking risk, and being brave and
[84:20] allowing guys like me to learn," said
[84:22] Malers. The young CEO continued, "He's
[84:25] never ever charged me a dime to learn
[84:27] from him." Right? That's the way I think
[84:29] about it. He's a pioneer in that way.
[84:31] He's never invoiced me for the things
[84:32] I've learned watching him over the last
[84:34] four years. Meanwhile, Mer said that
[84:36] from founding 21 Capital, he has never
[84:39] considered it a Bitcoin treasury
[84:40] company. I think it's a really loose
[84:42] term and this industry does that
[84:44] sometimes where Satoshi created Bitcoin
[84:46] and it's this decentralized
[84:47] cryptocurrency and then Vitalic Buterine
[84:49] prints a bunch of tokens in his basement
[84:51] and goes, I'm also a decentralized
[84:53] cryptocurrency. And it's like, well, you
[84:55] know, that's not technically the
[84:56] definition of decentralized or
[84:58] cryptocurrency, but now decentralized in
[85:00] crypto have become this something that
[85:02] none of us can define. It depends on the
[85:04] circle you're in and what you're talking
[85:06] about. I feel very similarly about
[85:07] Bitcoin treasury companies. Do we at 21
[85:10] have a Bitcoin treasury business?
[85:12] Absolutely, Mers added. I love shorting
[85:15] the dollar and buying Bitcoin. It's
[85:16] incredibly profitable. That's
[85:18] historically a tremendous business, said
[85:20] Jack Mers. And to have capital partners
[85:22] like Tether and SoftBank to be able to
[85:24] do that at scale and access to capital
[85:25] markets, that's 100% a part of our
[85:28] company, Mallers added. But both the
[85:30] clip on Twitter and this article seem to
[85:32] cut this part out. I don't know if
[85:34] people don't like it when I say we're
[85:37] not a treasury company and we plan to do
[85:39] things differently than other treasury
[85:40] companies. I don't know why they keep
[85:41] cutting it out. But what I also said is
[85:44] we are a Bitcoin company and we're going
[85:46] to be building Bitcoin financial
[85:47] services with an emphasis on
[85:49] profitability and cash flow and growth.
[85:52] Um because you know we want to be the
[85:54] Bitcoin treasury company that can afford
[85:56] it, you know, and and I don't know where
[86:00] the I don't know where this clip lives
[86:04] if this panel is like on YouTube or not
[86:06] because eventually I'll clip it and I'll
[86:07] show it to you guys. But you know what I
[86:09] ended up saying is if you spend too much
[86:11] time on Twitter, you get the impression
[86:13] that borrowing money is free somehow.
[86:17] And that's not true. Borrowing money has
[86:19] a cost. And you've seen different
[86:20] Bitcoin treasury companies try and
[86:21] bundle that cost and dress it up in
[86:24] different ways. And that's fine. And
[86:26] some of it has worked and we're going to
[86:27] copy it. And I'm very thankful for that.
[86:29] And some of it hasn't. And we're going
[86:30] to not do it. And I'm very thankful for
[86:32] that. But the point is it has a cost.
[86:36] And so we yes are going we have a
[86:39] massive treasury the third largest in
[86:40] the world and we haven't even been
[86:41] allowed to get started yet and I have
[86:43] some of the biggest capital partners in
[86:45] the world tether and SoftBank. It
[86:46] doesn't get better than that but also we
[86:48] think we can we're very uniquely
[86:50] positioned to build incredible Bitcoin
[86:52] products. I mean the combination of
[86:54] Tether and I we've touched every major
[86:56] industry and made incredible amounts of
[86:59] profits per employee. We think we can
[87:01] bring that to the capital markets and it
[87:03] actually allows us to afford to borrow
[87:07] money at scale if that's what we want to
[87:09] do or afford more of a certain future
[87:11] for ourselves. And so I just want to be
[87:14] clear because sometimes things get
[87:15] reported on Twitter or this article like
[87:18] does 21 have a Bitcoin treasury
[87:20] business? Yes, we're the third largest
[87:22] Bitcoin treasury in the world. Of
[87:23] course. Do we plan on continuing to
[87:25] short the dollar in long Bitcoin? Yes,
[87:28] 100%. But are we a Bitcoin Treasury
[87:30] company? No, I think we're a Bitcoin
[87:32] company.
[87:34] I don't even know what a Bitcoin
[87:35] treasury company means anymore. Does it
[87:38] have a definition? Like what's a
[87:39] decentralized crypto anymore? Who knows?
[87:42] It like we're a Bitcoin company. We're
[87:45] going to build Bitcoin products. We're
[87:47] going to be profitable. We're going to
[87:49] focus on the utility. We're going to
[87:50] grow the asset class. And we're going to
[87:52] stack a lot of sats. We want to own as
[87:54] much Bitcoin as we possibly can. So
[87:56] that's my update on 21. Obviously, the
[87:57] government's still shut down, so there's
[87:59] not a lot I can do, but uh things are
[88:01] moving along, man. Things are moving
[88:03] along. And um if you guys have questions
[88:05] about it, feel free to ask me because uh
[88:07] yeah, sometimes the reporting on this
[88:09] stuff, they they pick and choose when to
[88:11] quote me, which is fine. The article was
[88:13] good, but I don't know. Just felt like
[88:15] you guys should know that. Okay, cool.
[88:17] Um let me blow myself up uh here and get
[88:21] to Q&A. I noticed we're already an hour
[88:24] and a half in. Passionate episode. Um,
[88:27] so sorry about that. I'll have to keep
[88:29] Q&A short because it's 12:30 a.m. here
[88:31] and I have to catch a train to my flight
[88:35] at 4 in the morning. So I have to catch
[88:37] a train in three and a half hours.
[88:40] Uh, so I can't be up for too much
[88:44] longer, but it's all good. Let's answer
[88:48] a few questions. Jetlagged anyway.
[88:53] Okay.
[88:56] Sorry, one second. Me pull up Dylan's
[89:00] document.
[89:04] Oh, shoot. Hold on.
[89:13] Okay, here we go.
[89:17] Okay.
[89:20] Um, oh man, there's way too many
[89:24] questions in here, Dill.
[89:26] Uh, which ones do you think I should
[89:29] answer? There's no way I can get through
[89:30] this whole thing. I'll be here till 3 in
[89:32] the morning.
[89:39] Talk to me, D.
[89:45] D is not talking to me.
[89:49] Um, all right. Screw it. I'll just pick
[89:51] some random ones and uh and I'll just
[89:55] end it early. If I don't get to your
[89:57] question, I really do apologize. Maybe
[89:58] we'll make extra time for uh for
[90:02] questions next time. Will Strike ever
[90:05] offer a debit card to spend Bitcoin or
[90:07] USD? Kind of like how Coinbase does it?
[90:09] It would help a lot with having direct
[90:11] deposits and being able to spend with a
[90:13] card directly from Strike. Yeah. So, I
[90:15] kind of just answered that one.
[90:18] What I am looking at is uh you know a
[90:22] line of credit credit card on top of
[90:25] your Bitcoin. The reason I'm looking at
[90:28] that one is because that is a very
[90:30] unique card. It offers new utility. Like
[90:32] that's not something your MX could give
[90:34] you or your Coinbase card could give
[90:36] you. I don't want to do a card
[90:40] just like how
[90:43] uh like Coinbase or AMX does cuz why
[90:46] would we be better than them? like AMX
[90:47] gives you free wine, access to a lounge
[90:50] at the airport. Like they spent $18
[90:52] billion dollars in rewards over the last
[90:54] five years or something crazy like that.
[90:57] So, it's just like why why would why
[91:00] would Strike theoretically be better at
[91:02] cards than AMX unless there's something
[91:05] to do with Bitcoin because we're better
[91:06] than everyone at Bitcoin. And so, you
[91:09] know, obviously when I started to look
[91:11] into the line of credit and our
[91:12] customers are like, "Wow, that would
[91:13] change my life. That would be
[91:14] incredible." Then, you know, they
[91:16] started to ask, "Well, can you just give
[91:18] me the card?" And my question to them
[91:20] was, "Well, do you want to use the line
[91:22] of credit to pay off your MX or do you
[91:24] really want a card and you're not going
[91:25] to use the MX anymore?" And so, I'm just
[91:27] trying to figure out if it's worth our
[91:29] time there, or if like, you know, some
[91:31] of you guys will use it, but not
[91:32] everybody. Like, obviously, I don't want
[91:34] to build a product for like six people.
[91:36] So, if you guys have feedback on that,
[91:38] let me know. Obviously, if you want to
[91:40] keep using your MX, do that. I'll give
[91:42] you a line of credit that just pays off
[91:43] the MX. But if you do want a strike
[91:45] credit card that's tied to your Bitcoin
[91:48] collateral that's just, you know, you
[91:50] have a million dollars of Bitcoin, swipe
[91:51] the card for up to 500K. Like it'll go
[91:54] through. It's a like literal Bitcoin
[91:56] collateralized card. Like Visa um Visa
[92:00] listens [clears throat] to the show,
[92:01] believe it or not. Shout out to you. I'm
[92:03] not going to name you, but Visa listens
[92:04] to the show and they love the idea of
[92:08] building the first ever Bitcoin
[92:10] collateralized credit card with us. And
[92:12] so it's possible. The question is, you
[92:14] know, is the market there? So, we're
[92:16] we're taking a look. We're taking a
[92:18] look. Uh, will the Bitcoin line of
[92:21] credit be reasonable? Uh, need at least
[92:24] a 10K line of credit? Loans are awesome,
[92:26] but APR is way too high. Will line of
[92:28] credit be higher? Um, we haven't decided
[92:30] on any of the terms, but the point is
[92:32] like the line of credit will be shorter.
[92:35] So, obviously, you don't need to sign up
[92:37] for 12 month term like loan obviously.
[92:40] So, um, I'll I I don't want to, you
[92:43] know, overpromise here on the show and
[92:44] then underwhelm. So, I'm not going to
[92:47] make any promises because we haven't
[92:48] made any of those decisions. I mean, you
[92:50] guys should know and hopefully inferred
[92:53] that like the team at Strike is so
[92:55] unbelievable. I think it's they're the
[92:57] best in the game and it's not close.
[92:58] Like, think about all the things that
[93:00] they're producing. And no, there's not
[93:01] 10,000 people that work here. There's
[93:03] well under a hundred. It's like 80 of us
[93:05] and they are just cranking out
[93:07] innovative new unbelievable Bitcoin
[93:11] products that are scaling to the world.
[93:13] Like we launched Bitcoin backed lending
[93:16] six months ago, something like that.
[93:18] We're like one of the biggest retail
[93:19] lenders in the world. Obviously, we're
[93:21] not bigger than Tether, but Tether's a
[93:22] wholesale lender. Like Tether's an
[93:24] example of someone that would in theory
[93:26] lend to us. They're not someone who
[93:28] would lend to a consumer, an individual.
[93:32] We are like we're one of the biggest in
[93:33] the world if not the biggest in the
[93:35] world there in such a short order. So
[93:38] the point of that is the strike team is
[93:40] so good, so incredible. I don't want to
[93:42] undermine them. I'm already doing enough
[93:44] talking. I already know my president of
[93:47] the company is going to ping me like,
[93:49] "God damn it, you [ __ ] You
[93:51] running your mouth on your show." I do
[93:53] it for you guys. Um but I'm not going to
[93:56] run my mouth anymore. We're going to do
[93:57] the best we can. You guys know that. You
[93:59] got my word on that. and I'll let you
[94:01] know as soon as I feel comfortable.
[94:04] Um, first Strike loan, awesome
[94:06] experience. Shout out Mike from support.
[94:08] I love Mike from support. He's been at
[94:10] Strike for for years. He's a great guy.
[94:12] I noticed refi requires principle above
[94:15] the state minimum. Any plans to lower
[94:17] that across the board? Yes. Uh,
[94:20] absolutely. So, state minimums are
[94:22] obviously required by the state. They're
[94:25] like a,
[94:27] you know, there by getting certain
[94:29] licenses, you're able to bring that
[94:30] lower and lower and lower. And so we
[94:32] just keep applying for licenses. Like
[94:34] dude, I get a I get a new license feels
[94:36] like every other day because there's so
[94:38] many different licenses in this
[94:41] industry. And so yes, the po the goal is
[94:44] it just takes us time. You know, fill
[94:46] out the application, meet with the
[94:47] regulators, you have a little back and
[94:48] forth, takes time, they review it, they
[94:50] go to committee, they give you a
[94:52] license, or they don't, they reject it.
[94:53] you got to do it all over again. So, as
[94:55] we get these licenses, we'll be able to
[94:56] bring the minimums down. The minimum is
[94:57] obviously not from me. You know, I I
[94:59] would lend you guys a sack if I could.
[95:02] I'm not allowed to. So, yeah,
[95:04] absolutely. But I really appreciate the
[95:05] nice things you've said about the
[95:06] product. I think, you know, even the
[95:08] other lenders in the space, you know, I
[95:10] I think we're the only one with such a
[95:13] slick mobile app with other financial
[95:15] features like instant withdrawals or
[95:16] direct deposit or bill pay. The user
[95:18] experience is just beautiful. And that's
[95:20] part of my mission, too, is to just make
[95:22] Bitcoin relatable, understandable,
[95:25] usable, make the experience clean, and
[95:27] and as close to perfect as we can. So, I
[95:30] appreciate the uh the compliments. That
[95:33] means a lot to me and the team. Will the
[95:36] line of credit ac?
[95:44] Yeah, another good question. I think we
[95:45] can do either. I think it's really up to
[95:47] you guys. So, you know, I'm running my
[95:49] mouth because I'm excited and I know you
[95:51] guys like it, but I'm also running my
[95:52] mouth because any feedback you guys want
[95:54] to give us, you know, I open that. So,
[95:58] um, my employees are going to come
[96:00] through the comments and read what you
[96:01] guys have to say. So, let us know what
[96:03] you think or, you know, whether it's
[96:05] through the card, whether it a cruise
[96:07] daily, you know, whatever you guys think
[96:09] is best, we want to hear from you. I
[96:11] mean, we're building it for you guys,
[96:12] obviously. So, um, just let us know. Um,
[96:15] will there be interest on euros in
[96:17] Europe if you create that service? It
[96:19] sounds great. Yeah, 100%. So, the goal
[96:21] is, you know, the the way Bitcoin
[96:24] collateralized lending works is we're
[96:26] not lending our own money. You know,
[96:28] someone is giving us fiat that they want
[96:31] yield on and then someone is borrowing
[96:33] said fiat that they want against their
[96:35] Bitcoin. And so, the goal is if you're
[96:37] one of the people that says, "Hey, I got
[96:39] a rainy day fund of cash. I'll take
[96:42] whatever a lender is willing or excuse
[96:44] me, a borrower is is willing to pay me
[96:46] for it. Then yeah, you can just click a
[96:49] button and strike and say, "Go ahead,
[96:51] enter enter me into the pool." And then
[96:53] you can click a button says, "I want out
[96:55] and we'll say give us one business day
[96:57] because we'll replace your fiat with
[96:58] someone else's and we'll give it to
[97:00] you." And so that's uh that's the way it
[97:03] would work. That's the goal. Obviously,
[97:04] it's easier said than done. Um, but
[97:07] we're officially like I actually my
[97:10] president uh Manuela who runs she's an
[97:13] absolute legend. She's president of
[97:15] Strike, helps me run the company, but
[97:17] also runs like everything product. So
[97:19] what you see as Strike, it's like she is
[97:23] the boss. We met here in Lugano. She was
[97:26] here and I sold her on the idea
[97:29] officially. I brought it up to her and
[97:30] stuff. Obviously, she's managing a ton
[97:32] of stuff. But I said, you know, people
[97:34] really want this whole interest on cash
[97:35] thing. I mean, it would make us
[97:36] pound-for-pound the best like banking
[97:39] experience in the world. You've got an
[97:41] asset you can acquire for cheap fees.
[97:42] It's growing 50% Kagger. You can store
[97:45] it with us for free if you want. You can
[97:46] withdraw it to cold storage for free if
[97:47] you want. No fee DCA, direct deposit,
[97:49] pay your bills, different forms of
[97:51] lending, now a line of credit,
[97:53] potentially a secured card on top of
[97:55] that. And then if you do want to own
[97:57] fiat,
[97:58] you get the highest return on it. Like
[98:01] as far as I'm concerned, that's safe and
[98:03] secure and overcolateralized. It's twice
[98:06] what the Fed would give you. Man, how
[98:09] are you going to beat opening an account
[98:10] at Strike after that?
[98:13] Um, personal question for Jack. Do you
[98:15] regret buying property when you could
[98:17] have just bought Bitcoin instead? Yeah,
[98:20] of course, dude. Come on, man. I do.
[98:23] But, you know, another thing, my
[98:26] girlfriend just moved in and uh well,
[98:29] earlier this year, you guys have heard
[98:30] me say, "Oh, I can smell my girlfriend
[98:32] got home, she's cooking, but she moved
[98:34] in uh earlier in the spring and uh I was
[98:37] talking to some Bitcoiners here at the
[98:38] conference and uh my dream, I've told
[98:40] you guys this before, but my dream, you
[98:42] know, listen, being the founder of
[98:44] Strike has been a dream. Founding 21 has
[98:48] been a dream. Being a being a podcaster
[98:51] with you guys has been a dream. Uh being
[98:53] a Bitcoiner, just being around, being
[98:55] lucky enough to come across the white
[98:57] paper, have the dad and stepmom I I have
[98:59] to get me into it. It's all been a
[99:01] dream. But I would say the dream is
[99:04] being a dad for me, just having a
[99:07] family. Um and uh I love my girl to
[99:11] death. Uh and I can't wait to uh to have
[99:14] kids with her and and start a family.
[99:17] And so, you know, if you are going to
[99:19] spend Bitcoin, if you are going to part
[99:20] with SATS, you know, for me,
[99:24] um there's just there's no there's no
[99:26] better time and energy spent than having
[99:29] a home, um for the people I love and the
[99:32] family that I can't wait to have. So, um
[99:35] that's how I justify it. Um but no, I
[99:38] mean, I was young. I'm I wasn't nearly
[99:40] as experienced as I am now. And, uh it's
[99:43] all good, though. Um it's all good.
[99:46] we'll make it back or not. But at least
[99:49] I have good memories there. I'm worried
[99:51] about Chicago, so maybe I'll have to
[99:54] sell it and get a house somewhere that I
[99:56] feel more comfortable raising kids. But
[99:58] we'll cross that bridge when it comes.
[100:00] Um, another question for Jack. If you do
[100:03] don't hold any dollars, do you just buy
[100:05] more Bitcoin with your strike loans and
[100:06] use bill pay or do you hold that or do
[100:09] you hold the loan as dollars? I've done
[100:10] both. I mean, my dollar net worth is net
[100:13] worth is negative. It's like negative a
[100:15] million or something. Um, but I've done
[100:18] both. Take the do take the loan, buy
[100:20] Bitcoin, use the Bitcoin to bill pay. I
[100:23] mean, I've had things where, you know, I
[100:25] have a really big bill in my life, like
[100:28] a tax bill or something and I take out
[100:30] the loan and I instantly pay the bill.
[100:34] Um, or I've had things where I have a
[100:35] loan I have a
[100:37] I have a finance I have a payment coming
[100:39] up like in a week or in a month and
[100:41] Bitcoin dips and I want to lock in a low
[100:43] Bitcoin price and so I borrow against a
[100:45] low Bitcoin price and I so um I've done
[100:48] both. No right answer. Um, but no, I I I
[100:51] own the least amount of fiat I could
[100:53] possibly own. Um obviously um but you
[100:55] know my my fiat net worth has remained
[100:58] negative for years now but you know
[101:00] there's been weeks or you know sometimes
[101:03] my girlfriend would be like oh my gosh
[101:04] like do you think if Twitter found out
[101:06] that you own these $10 right here they
[101:08] would be so pissed at you and I I don't
[101:10] think so like it was what was left over
[101:13] of what I just sent to the IRS and then
[101:15] I'll buy Bitcoin with it in a second but
[101:18] that's the truth. I mean, uh, anyway,
[101:22] um, what's my favorite Pixar movie? I'm
[101:25] not a big movie guy.
[101:28] I don't know. What are What are my
[101:30] options? Finding Nemo. That's Pixar,
[101:33] right?
[101:35] Hold on. I want to answer this question.
[101:37] Well,
[101:39] let's ask AI.
[101:42] What are the most famous? This will be
[101:46] my last question because then I have to
[101:48] go Pixar movies.
[102:02] Let's see.
[102:07] Yeah, everyone's saying that I need to
[102:09] uh marry my girlfriend. No [ __ ] I'm
[102:11] working on it. I'm working on it. You
[102:14] guys will You guys will know when I get
[102:16] engaged and when I get married. It's
[102:19] coming soon.
[102:22] Um
[102:25] H Toy Story, Toy Story 2, Monsters, Inc.
[102:28] Finding Nemo, The Incredibles. Oh, Up.
[102:31] Up. For me, the movie Up
[102:35] Up
[102:36] is the movie about um
[102:39] the little boy and the old man who just
[102:42] lost his uh wife and they go on an
[102:45] adventure together.
[102:48] I'm an emotional guy. You guys know
[102:49] that. I'm an emotional guy. So, give me
[102:52] a comedy or give me like an up. I would
[102:55] be Finding Nemo or Up for me.
[103:00] But up up is an underrated one. Up is
[103:03] great. Easy. Easy for me. Finding Nemo
[103:06] or and up. If I had to pick one or the
[103:07] other, it'd be up. For sure. For sure.
[103:11] Um,
[103:14] cool. Okay. Um, yeah, there's so many
[103:18] questions. Uh, I see some of you guys in
[103:21] the chat like we could be asking him
[103:22] about the global forex rate and we're
[103:24] talking about Finding Nemo. There
[103:26] probably are questions about the global
[103:28] forex rate. It's like [ __ ] a hundred
[103:30] of them and it's almost 1:00 a.m. here
[103:33] and u my I have to go to my flight soon.
[103:35] So, uh that's my bad. I just was
[103:39] screaming too much about Only Fans
[103:40] tricks. I probably should have brokered
[103:42] my time better. So, that's my fault, not
[103:43] anyone else's. But with that,
[103:47] I'm out of here. Um I love you guys. I
[103:50] appreciate it. Give us feedback either
[103:52] on me and the show, things I could do
[103:54] better, things you want changed. Uh and
[103:56] then on the products. spent a lot of
[103:58] time talking about Strike today. So, let
[104:00] us know what you think. Let us know what
[104:02] you want. I mean, we're here to serve
[104:04] you. And we have like literally almost
[104:06] every license. We've got the most
[104:07] talented engineering and product team,
[104:09] 247 customer support. I mean, we could
[104:12] do anything. Incredible company,
[104:14] profitable, tons of Bitcoin on the
[104:15] balance sheet. We've worked really hard
[104:17] to be in a position to serve you guys.
[104:19] So, um, if you do ever want to support
[104:21] me, you can download Strike or look into
[104:24] 21. Um, those are my companies. I don't
[104:27] make money any other way. Uh, and uh,
[104:31] let us know what you want. So, uh,
[104:34] appreciate you guys. This show's a
[104:36] blast. What a what a wild How did we all
[104:38] end up here? What am I doing? It's like
[104:41] 1:00 a.m. I'm by myself in Europe just
[104:44] screaming at you. Um, hilarious. What a
[104:47] fun ride. Um, I'll see you guys next
[104:50] week. You better bet that. Every week, 6
[104:53] PM ET Mailbag Mondays. Much love to