When Rocks Beat Bonds: Get Yourself Some Bitcoin

[0:07] Yo!
[0:11] What is going on, guys? We're out here
[0:15] in the woods. I got to keep you on your
[0:17] toes here at the Jack Mallers Show.
[0:19] What? You thought you're going to have
[0:22] some grown man that looks like he's 12
[0:24] ranting about macroeconomics and Bitcoin
[0:27] in an empty closet? That's what you
[0:28] thought you were tuning in to? What are
[0:30] you nuts? Is there something wrong with
[0:31] you?
[0:33] Not that easy. Keeping you on your toes.
[0:35] We're out here in a cabin. We're in the
[0:36] woods. We're getting some air. We're
[0:38] touching nature, okay?
[0:41] Bitcoin's a global phenomenon. Can't be
[0:44] stuck in the closet all the time. Ladies
[0:46] and gentlemen, how are you guys doing?
[0:47] My favorite corner of the internet. My
[0:50] name is Jack. You've tuned into the Jack
[0:52] Mallers Show. Another episode of Mailbag
[0:55] Mondays, a weekly live stream that gets
[0:58] published on the podcast airwaves where
[1:00] we go over Bitcoin, macroeconomics,
[1:03] financial markets, and making sense of
[1:05] the world. How are we going to store our
[1:07] time, our energy, our effort, our labor,
[1:09] our capital, our money?
[1:12] Our money.
[1:14] Without further ado,
[1:15] yeah, you guys like that one, chat? You
[1:17] know what? I say this, if I wasn't
[1:19] working on Bitcoin,
[1:21] I'd do something in comedy. I love a
[1:24] good laugh. I love making you guys
[1:25] laugh. You guys flatter me, you know
[1:27] that? Also, um someone decided to build
[1:30] a house right as I
[1:32] hit record.
[1:34] Uh you guys let me know if it's too
[1:35] distracting. Hopefully, it's not. Dylan
[1:37] will run up here and
[1:39] and uh let me know. All right, without
[1:41] further ado,
[1:42] let's get into it. Guys, I'm talking to
[1:44] you with a Bitcoin price of $114,220.
[1:50] Bitcoin's up substantially on the day.
[1:52] That puts its market cap at $2.28
[1:55] trillion
[1:56] as an asset class. All-time high
[1:59] unchanged at $124,400.
[2:02] We're about 8% off from that all-time
[2:05] high that we made on August 13th, 2025.
[2:12] W's in the chat.
[2:14] For those that keep track of time in
[2:16] Bitcoin block height,
[2:19] I'm timestamping this episode at Bitcoin
[2:22] block height 916,974.
[2:25] That is the last Bitcoin block mined as
[2:27] I speak to you now. Episode 85
[2:32] and it is titled
[2:33] When Rocks Beat Bonds, Get Yourself Some
[2:38] Bitcoin.
[2:42] For those that don't know, before I
[2:43] start ranting, you guys ask your
[2:45] questions in the chat. Dylan will make
[2:47] sure that they're documented so that I
[2:50] can answer them, okay? Here goes my long
[2:52] big rant. When Rocks Beat Bonds.
[2:58] The real flippening.
[3:00] Um so,
[3:01] when I say rocks, I'm talking about
[3:03] gold, obviously, right? But,
[3:06] um
[3:08] what do I mean by the real flippening?
[3:10] Well, in Bitcoin, there's a term coined
[3:13] by Coinbase
[3:15] called the flippening. I kid you not, I
[3:17] swear to you. The flippening refers to a
[3:20] potential future event where Ethereum's
[3:23] market cap surpasses that of Bitcoin.
[3:26] The term was coined in 2017 based on
[3:28] Ethereum's flexibility and its ability
[3:31] to support decentralized applications
[3:33] and smart contracts.
[3:34] While Ethereum has surpassed Bitcoin in
[3:36] some metrics, God, these guys are such
[3:38] [ __ ] scammers,
[3:40] such as transaction count,
[3:42] the flipping flippening, excuse me, in
[3:45] terms of market capitalization has not
[3:47] yet occurred. Um so, this is Ethereum.
[3:50] That's that 2017 blip on the far left
[3:54] and this is it since. An utter and
[3:56] complete scam. An utter and complete
[3:58] shitcoin. Shoutout Coinbase for really
[4:01] showing what not to do when it comes to
[4:04] championing Bitcoin. It's really
[4:06] astonishing.
[4:07] I couldn't ruin my credibility
[4:11] like they have even if I tried. So, I
[4:15] say the real flippening because to me,
[4:18] the real flippening is a neutral reserve
[4:20] asset flipping US Treasuries as a
[4:25] central bank reserve. Not any of these
[4:28] shitcoins flipping Bitcoin. That will
[4:31] never happen. Thanks for playing. Good
[4:34] game. You got fooled. But no, guys, what
[4:37] we've talked about on the show over and
[4:39] over and over again
[4:41] is
[4:42] a monetary regime change. The post-71
[4:46] dollar is over. The post post-71 dollar
[4:49] was the creation of a piece of paper
[4:52] that was backed by nothing, was
[4:53] redeemable for no neutral reserve asset,
[4:56] was redeemable for nothing that was
[4:58] governed by Mother Nature, by the
[5:00] universe, by the laws of physics.
[5:02] And that countries were to repatriate
[5:04] the dollars that we would print and hand
[5:06] out back into our country by buying our
[5:09] debt. That's these US Treasuries. And
[5:11] you can see now gold, which has been
[5:14] bottoming out ever since the divorce
[5:16] from the gold standard in 1971. So, you
[5:18] guys can see gold at its peak right
[5:21] there. It's looked like 1980, but in
[5:23] 1970s, 1980, gold was held as a reserve
[5:26] asset by central banks. It plummeted all
[5:30] the way down to, you know, 10% lows or
[5:33] high single digits. And now gold is on
[5:35] its way, I think months away based on
[5:38] price action and the level of stacking
[5:40] from central banks,
[5:42] where we will have a neutral reserve
[5:44] asset back as the bank reserve asset as
[5:48] opposed to debt from the US government.
[5:52] This also comes on the back of the UK
[5:55] 30-year bond. So, these long duration
[5:59] pieces of trash that nobody wants to
[6:01] own. UK 30-year bond sale receives
[6:05] fewest orders since 2022.
[6:09] Yikes. That's not good. Bloomberg
[6:12] writes, "A UK government offering of a
[6:15] 30-year debt saw the lowest total orders
[6:18] since 2022, highlighting waning demand
[6:21] for long-term gilts."
[6:24] Bids worth 4.6 billion pounds or 6.2
[6:28] billion dollars were placed for the Debt
[6:30] Management Office's offering of 1.5
[6:33] billion pounds of gilts due in 2056.
[6:37] Can you imagine getting a
[6:38] fiat-denominated payout in 30 years?
[6:42] While that meant the sale was still more
[6:44] than three times oversubscribed, the
[6:46] auction size was unusually small with
[6:49] the lowest amount of sale in 3 years.
[6:51] That small size is part of the UK's plan
[6:54] to cut back on longer-term issuance as
[6:57] demand from steady buyers such as
[7:00] pension funds dries up. Tuesday's
[7:03] outcome will offer some vindication to
[7:05] the DMO's strategy. So, guys, here's the
[7:08] deal.
[7:10] What we're living through, this era
[7:12] we're living through, and why I called
[7:13] it Rocks Are Outperforming Bonds,
[7:16] is because we are, and I'll repeat it
[7:18] every single Monday. That's what you
[7:20] guys are spending your time with me for
[7:22] is to hear me say the same goddamn
[7:24] thing.
[7:26] We are moving back to a neutral reserve
[7:28] era. We are moving towards an era where
[7:30] monetary instruments are going to
[7:32] compete for who can sustain, persist
[7:35] your time, your energy, your effort,
[7:37] your labor the best. Who's the scarcest?
[7:39] Who's the most portable? Who's the most
[7:41] divisible? Who's the easiest to verify?
[7:43] Who's the cheapest to send?
[7:45] Who's the easiest to receive? How much
[7:47] does it cost to store it?
[7:49] Open competition because the days that
[7:52] governments can trick people into buying
[7:55] their debt are over.
[7:57] Are over.
[8:00] And by the way, the UK struggling to
[8:02] sell its own pieces of trash bonds,
[8:06] they're the biggest buyers of our pieces
[8:09] of trash bonds. If the UK can't sell
[8:12] their own bonds, how the hell are we
[8:13] going to sell our bonds?
[8:18] This is Treasury held. You've got BRICS,
[8:21] you've got Japan, you've got BLICS plus
[8:23] the U- plus the UK.
[8:25] Japan's been about net flat
[8:28] over the last 20 years.
[8:31] BRICS down. Look at post-financial
[8:34] crisis. Leading up to the US financial
[8:37] crisis or the global financial crisis,
[8:38] rather,
[8:40] BRICS were adding to their Treasuries.
[8:42] As soon as that happened,
[8:44] and they were proven to be a complete
[8:46] and utter scam,
[8:49] that's when everything changed.
[8:50] China, Russia, net sellers, stacking
[8:53] gold.
[8:55] The only net buyers, we've talked about
[8:57] this all the time, guys, the Cayman
[8:58] Islands, the UK,
[9:01] our own banking system.
[9:03] Cayman Islands because that's where all
[9:04] the hedge funds are domiciled.
[9:05] Everywhere that has a tax-advantaged
[9:08] jurisdiction.
[9:09] The Cayman,
[9:11] Irish entities,
[9:13] like US tax haven, Ireland.
[9:17] Then our own banking system. We allow
[9:19] substantial leverage, uncollateralized
[9:22] leverage,
[9:23] to our own domestic banking system so
[9:25] that they can pile in to these long
[9:27] duration pieces of trash. That's what
[9:29] tripped up Silicon Valley Bank.
[9:34] Nobody wants bonds. That's that's your
[9:36] introduction to the show every single
[9:39] week. Nobody wants these pieces of crap.
[9:44] And everyone is moving towards scarce
[9:46] assets.
[9:49] Now, just want to remind you guys what
[9:51] the United States plan is to address
[9:54] this because it's no secret at this
[9:56] point. it is unsustainable to finance
[9:59] the United States
[10:00] through the traditional Treasury
[10:02] auctions. There's not enough demand for
[10:05] US debt. Everyone is rotating out and
[10:09] into gold and Bitcoin, primarily. Global
[10:13] neutral reserve assets governed by the
[10:16] laws of physics that operate within
[10:19] the rules that are Mother Nature.
[10:22] Can't make them out of thin air.
[10:24] Can't just take them out of someone's
[10:26] pocket because you don't like what they
[10:27] believe in.
[10:29] You understand?
[10:30] So, the US is turning to, in part,
[10:33] stable coins. So, this is an old tweet
[10:36] from Bessembinder, but I want to
[10:37] resurface it given the context. Recent
[10:39] reporting projects that stable coins
[10:41] could grow to $3.7 trillion
[10:44] by the end of the decade. That scenario
[10:46] becomes more likely with passage of the
[10:48] GENIUS Act. A thriving stable coin
[10:51] ecosystem will drive demand from the
[10:53] private sector for US Treasuries. There
[10:55] it is, guys, which back stable coins.
[10:58] This new-found demand could lower
[11:00] government borrowing costs and help rein
[11:02] in the national debt. It could also
[11:05] on-ramp millions of new users across the
[11:07] globe to the dollar-based digital asset
[11:09] economy. It's a win-win-win for everyone
[11:12] involved, the private sector, the
[11:13] Treasury, consumers. These are the
[11:15] fruits of smart, pro-innovative
[11:17] legislation. So, again, just a reminder,
[11:20] the US government is trying to find a
[11:22] balance sheet they can repress, trying
[11:24] to find a balance sheet that they can
[11:26] sell their debt to. And their answer is
[11:29] stable coins. And this, in my opinion,
[11:32] and I know a lot of you in the comments
[11:33] like, "I don't understand what you're
[11:34] trying to say. I don't get this. How is
[11:37] this benefiting Bitcoin?" Stable coins
[11:39] and Bitcoin grow in tandem. The fastest
[11:42] way to grow stable coins is to grow
[11:45] Bitcoin. Okay? That's the
[11:48] Tether and Bitcoin have a ratio of
[11:50] somewhere between 2 and 1/2 to 10x.
[11:53] The Bitcoin market cap is a Bitcoin is
[11:57] substantially
[11:59] larger than stable coins, and the
[12:00] fastest way to grow stable coins is to
[12:03] grow Bitcoin itself.
[12:07] And so, the US is going to try and solve
[12:09] this problem
[12:10] by growing what they call the digital
[12:13] asset economy. By,
[12:16] quite frankly, finding new Treasury
[12:18] buyers
[12:20] by growing the de facto trading pair to
[12:23] Bitcoin.
[12:24] So, TLDR, nobody wants bonds. They're
[12:28] going to try and save it with stable
[12:29] coins. Tremendously bullish for Bitcoin.
[12:31] Gold is flipping Treasuries. We are
[12:34] officially, I don't know how else I
[12:36] could put it cleanly. We are officially,
[12:37] officially, officially entering a new
[12:40] monetary era. And this
[12:43] literally
[12:45] this graph here, guys, literally shows
[12:48] it. It is no longer hypothetical. You're
[12:50] no longer listening to the crazy people
[12:52] on Twitter. It's literal central bank
[12:55] reserve assets. Gold is flipping
[12:58] Treasuries as we speak. Next, the math
[13:02] is broken. So,
[13:05] Luke resurfacing this chart, I mean, you
[13:07] cannot get enough of this chart. These
[13:10] are our outlays. These are our expenses
[13:12] as a country. So, you've got HHS, Health
[13:15] and Human Services. You've got Social
[13:17] Security. You've got our Treasury
[13:18] expense. So, we have a lot of debt. We
[13:21] owe interest on that debt.
[13:24] So, what Luke writes here is this is
[13:26] Trump vs. the Fed in one easy chart.
[13:30] And he's saying
[13:31] Powell and Wall Street
[13:34] supporters are in essence trying to
[13:36] force cuts to Health and Human Services,
[13:38] Social Security, Defense, and Veterans
[13:40] Affairs. So, here here's here's what
[13:44] Luke is saying. The blue arrows, which
[13:46] are Health and Human Services, Social
[13:48] Security, our defense budget, okay?
[13:51] Veterans Affairs.
[13:53] Either we make substantial cuts to those
[13:56] as a country. Okay, substantial. Like,
[13:58] cut them all by 25% forever today.
[14:03] So, our military defense, gone.
[14:07] Health and Human Services,
[14:09] cut.
[14:10] Social Security, you're not getting
[14:11] paid.
[14:13] Or, the Fed has to cut rates
[14:15] drastically. That's the red arrow.
[14:18] That's the only way to make the math
[14:20] work. We are on an unsustainable path.
[14:24] Cuz at the at the top right of Luke's
[14:26] graphic here, he says, "US true interest
[14:28] expense is around 100% of US all-time
[14:31] high receipts, and it's growing faster
[14:33] than receipts." What that means in
[14:35] layman speak, in the Jack Mallers Show
[14:37] speak, is that we are spending
[14:41] more than we're making. And we already
[14:44] are incredibly indebted.
[14:46] So, we're not going to be able to even
[14:48] kick the can down the road unless we
[14:50] bring our costs down.
[14:52] So, it's your pick. You either cut the
[14:54] blues by 25 to 50%.
[14:58] So, Trump gets out and says, "Your
[14:59] Social Security, you're not getting
[15:00] paid. Health and Human Services, sorry,
[15:02] they're gone. Our defense budget, yikes,
[15:05] we better not get into war."
[15:06] Or,
[15:09] he bullies Powell into cutting rates
[15:11] despite stock market at all-time high,
[15:13] despite inflation starting to pick back
[15:16] up again.
[15:17] Does that make sense? Do you understand
[15:19] now? Trump vs. the Fed? Do you
[15:21] understand now the pressure these guys
[15:23] are putting on Powell in a very simple
[15:25] graphic. US Treasury bonds have negative
[15:27] returns over the past 5 years. Tack on
[15:30] inflation, it's even worse. This has
[15:32] been an awful decade for fixed income.
[15:34] Again, guys, it could not be more
[15:37] simple. The math doesn't check out. You
[15:40] cannot own bonds. You have a choice. You
[15:43] and your loved ones and the people you
[15:44] care about.
[15:46] You own Bitcoin,
[15:48] you're going to get more housing, more
[15:50] vacation, more food, more education,
[15:54] better lifespan, better life expectancy.
[15:57] You own bonds,
[15:59] sure, you can own bonds. Listen,
[16:02] I'm sitting out here in the mountains.
[16:03] It's peaceful, fresh air, good vibes,
[16:05] good mood. You can own whatever you
[16:07] want. I'm just letting you know, you're
[16:09] going to get less housing, less
[16:10] education, less food, less life
[16:12] expectancy,
[16:15] less everything that you want. Your life
[16:18] gets more expensive and unattainable
[16:21] when you own dollars,
[16:24] fiat, bonds, fixed income. I'm sorry.
[16:28] Don't shoot the messenger.
[16:30] Your life gets better. You live in an
[16:33] abundance because everything around you
[16:36] is more abundant than the money you're
[16:38] holding. Bitcoin is scarcer than
[16:39] everything else you consume. So,
[16:41] everything else around you gets more
[16:43] affordable, gets better, gets more
[16:45] attainable.
[16:47] You're going to get more housing, more
[16:49] food, more education. You'll have more
[16:51] kids. You'll live longer.
[16:54] It's a choice that you have to make
[16:56] yourself as a sovereign individual.
[16:59] Unfortunately, the government is not
[17:01] going to make it for you. In fact,
[17:03] they're going to do the opposite.
[17:07] If you have one takeaway from this show,
[17:10] what life do you want?
[17:13] You're going to have to increasingly
[17:14] decrease your lifestyle and make
[17:15] compromises if you own one thing,
[17:18] and you're going to have an abundance of
[17:20] everything you love if you own the
[17:21] other.
[17:26] So, this to me was notable. So, this is
[17:29] from CNBC. South Korea's President Lee
[17:31] says US investments demands would spark
[17:34] a financial crisis.
[17:36] So,
[17:37] let's break this down. This is from the
[17:39] article. South Korea's economy could
[17:41] fall into crisis rivaling its 1997
[17:44] meltdown if the government accepts
[17:46] current US demands installed trade talks
[17:49] without safeguards, President Lee
[17:51] Jae-myung told Reuters.
[17:54] Seoul and Washington verbally agreed to
[17:56] a trade deal in July in which the US
[17:59] would lower President Donald Trump's
[18:00] tariffs on South Korean goods in
[18:02] exchange for 350 billion in investment
[18:05] from South Korea, among other measures.
[18:08] They have yet to put the agreement on
[18:09] paper because of disputes over how the
[18:11] investments would be handled, Lee said.
[18:14] "Without a currency swap, if we were to
[18:16] withdraw 350 billion dollars in the
[18:19] manner that the US is demanding, and to
[18:22] invest it all in cash in the United
[18:24] States, South Korea would face a
[18:25] situation as it had in the 1997
[18:28] financial crisis," he said through a
[18:30] translator. In an interview in his
[18:32] office on Friday, Lee also spoke about a
[18:34] huge US immigration raid that detained
[18:36] hundreds of Koreans, as well as Seoul's
[18:38] relation to with rival North Korea,
[18:40] neighboring giant China, and Russia.
[18:43] But trade and defense talks with the US,
[18:45] South Korea's military ally and a top
[18:47] economic partner, are overshadowing a
[18:49] trip Lee makes from Monday to New York,
[18:52] where he will address the United Nations
[18:53] General Assembly, and be the first South
[18:55] Korean president to chair a meeting of
[18:58] the Security Council. Now,
[19:00] what's the bigger takeaway here?
[19:03] If we dumb down what he just said,
[19:07] I love this tweet. South Korea
[19:09] suggesting that their 350 billion dollar
[19:11] investment in the United States. So,
[19:12] first of all, let's take a step back.
[19:14] What is Trump trying to do?
[19:16] Trump is trying to get investment back
[19:18] into
[19:20] the United States. Because why, guys?
[19:22] Because globalism, this post-1971
[19:25] US dollar,
[19:27] it hollowed out the United States. We
[19:30] did not produce any of our stuff. We
[19:32] hollowed out our manufacturing base.
[19:34] Everyone else around the world,
[19:35] primarily China, built the stuff that I
[19:38] as an American consume. We export our
[19:40] dollars. We import real stuff.
[19:42] That has run its course. This era is
[19:44] over. It's collapsing. Finito. Goodbye.
[19:46] Good game.
[19:48] And so, Trump is trying to
[19:49] re-industrialize the United States of
[19:51] America. He needs money to do that. He
[19:53] needs capital to do that. The question
[19:55] is where's the money come from? So, what
[19:56] he's done, he's tried to weaponize
[19:58] tariffs. Tariffs are a sneaky way to do
[19:59] it, generate revenue for the United
[20:01] States, and then weaponize it to get
[20:03] investment from other countries directly
[20:05] in
[20:06] building factories and reindustrializing
[20:08] this country. Now,
[20:11] what
[20:12] South Korea is saying is
[20:14] we need a swap line to finance this.
[20:16] Because if you don't give us a swap
[20:18] line,
[20:20] we're going to have a financial crisis,
[20:22] or I'm going to cause a financial crisis
[20:25] on your ass.
[20:27] Guys, this is US liabilities, US assets
[20:31] net. So, US liabilities, how much
[20:34] foreigners own of US assets.
[20:38] US assets, how much we own of their
[20:40] [ __ ] Net, the difference.
[20:43] The point is,
[20:45] how can
[20:47] Korea fund America without selling
[20:49] America? All their assets are in the US.
[20:53] Oh, you want 350 billion dollars? Well,
[20:56] I'm going to have to sell treasuries and
[20:59] US stocks.
[21:01] That's what he's saying. He's saying,
[21:02] "Listen,
[21:03] I don't have the money, cuz all the
[21:05] money's already in the US. If you want
[21:07] some of my money that's already in the
[21:09] US to go towards building factories,
[21:12] sure. You go sell Nvidia, sell Facebook,
[21:15] sell Google. So, the S&P 500, the
[21:18] American savings account, is going to
[21:20] have poor performance. Oh, and I'm going
[21:22] to cause the Treasury market to
[21:23] malfunction, because I have to dump a
[21:25] bunch of US debt, and we already know no
[21:27] one's there to buy it.
[21:30] So, President Trump,
[21:32] what do you want me to do? You want to
[21:35] cause a financial crisis in my country?
[21:37] You want me to cause a financial crisis
[21:38] in your country? Or are you going to
[21:40] give me the money?
[21:42] Are you going to print the money?
[21:43] Because here's the thing,
[21:45] if the US is financing 350 billion
[21:48] dollar investment from South Korea via
[21:50] swap line,
[21:52] that we've printed the dol- it's a very
[21:54] fancy way of we're printing the money,
[21:56] giving it to them, and they're giving it
[21:58] back to us.
[22:01] Here's the whole message about
[22:03] reindustrializing the United States. You
[22:05] can only do it if you're willing to
[22:07] print the money, if you're willing to
[22:09] devalue the dollar against something
[22:11] like gold and Bitcoin, and print the
[22:12] money. If you want a competitive export
[22:14] market,
[22:15] here riddle me this, guys. Why isn't the
[22:18] iPhone made in Manhattan? Why is it made
[22:21] in China?
[22:22] Because paying an employee to live to
[22:25] make an iPhone in Manhattan, Manhattan
[22:27] rent is like $5,000 a month.
[22:30] The dollar is too strong.
[22:33] You got weak currencies on the eastern
[22:35] side of the world with very cheap labor.
[22:38] That's why. If you want production of
[22:41] real stuff to come back to the US, you
[22:43] need a weaker dollar, and you have to
[22:45] print the money to finance it.
[22:47] Oh, you want to pretend that South Korea
[22:49] is is giving us 350 billion dollars, but
[22:51] the president just said, "I don't have
[22:53] it. The only way I can have it is if I
[22:55] dump your treasuries and dump your S&P
[22:57] 500. So, either I do that, or you give
[22:59] it to me."
[23:01] They have to print the money. They have
[23:04] to print the money. Sorry if I sound
[23:06] like a broken record, but it's true.
[23:08] They don't have a choice, guys. I'm
[23:10] telling you,
[23:11] to me it's so obvious. This is why I
[23:14] believe Bitcoin is going to go up in
[23:16] this monetary debasement era. They have
[23:18] no choice, but to print the money.
[23:24] Okay.
[23:26] This just shows how overweight the world
[23:29] is in US equities. So, this is an ever
[23:32] more imbalanced world. A decade ago, the
[23:35] US would have half the world stock
[23:37] market, now it's 2/3. Look at the size
[23:41] of this. I mean, it is just outrageous.
[23:42] And so, for me, I mean, this is a slide
[23:45] that I wanted to put in just to showcase
[23:47] that, you know, be careful in stocks,
[23:50] okay? It's not clear to me that equities
[23:53] are going to perform like people think
[23:55] they will. They'll perform in nominal
[23:57] terms. In dollar terms, they'll perform.
[23:59] They have to. The US needs stocks to go
[24:01] up to get the tax receipts to finance a
[24:04] lot of their debt and payments.
[24:07] So, the stock market has to go up 10 to
[24:09] 15% a year
[24:11] forever.
[24:12] According to the current financial
[24:14] system we're in. That's why you've got
[24:15] the S&P 500 at 10 to 14% CAGR. That's
[24:18] what it is.
[24:20] But, the S&P 500 gets demolished in
[24:23] Bitcoin terms. Bitcoin's CAGR is 50 to
[24:25] 60%.
[24:27] And so, be careful,
[24:29] because you might find yourself
[24:31] buying what a lot of money is selling.
[24:34] Look at how much money might have to
[24:36] sell to finance domestic crisis, or
[24:40] finance payments to the United States.
[24:43] The stock market is a global savings
[24:45] account. The US dollar is de facto
[24:47] backed by two things, the US military
[24:49] and the S&P 500.
[24:53] And the S&P 500 is really made up of
[24:55] these six companies.
[25:01] So, the reason I put in this next slide,
[25:03] this is Bitcoin against the SPX.
[25:07] Just murdering it.
[25:11] So, again,
[25:13] what are the takeaways from this
[25:14] chapter? They have to print the money.
[25:17] You're going to read on the newspaper
[25:18] that Trump got South Korea to invest in
[25:21] the US. No, no. They printed the money
[25:23] via swap line to give to South Korea to
[25:25] invest in the US. It's printing the
[25:27] money. It's inflationary. It's weakening
[25:29] the dollar.
[25:30] They have to have a weaker dollar to
[25:32] reindustrialize, to be competitive in
[25:34] exports, to do what they want to do. Not
[25:36] even what they want to do, do what they
[25:37] need to do. They don't have a choice.
[25:42] And the third is be careful. Not all
[25:44] horses are as fast as they look.
[25:48] Yes,
[25:49] in dollar terms, the stock market will
[25:50] go up. But, guess what? In dollar terms,
[25:52] everything goes up. Your coffee goes up.
[25:54] Your grocery bill goes up. Your gas tank
[25:56] price goes up. Everything goes up in
[25:58] dollar terms, because the dollar just
[26:00] can't help itself. It has to go down.
[26:02] So, that's not impressive. That doesn't
[26:03] win over my time, my energy, my effort,
[26:06] my labor.
[26:07] The question is, what's the fastest
[26:09] horse? What's the scarcest horse? What's
[26:11] the most divisible horse? What's the
[26:12] easiest horse to save and and trade?
[26:16] What's a global horse? It's Bitcoin.
[26:19] It's Bitcoin. Bitcoin's going to
[26:20] continue to absolutely demolish stocks.
[26:24] So, be careful, especially if countries
[26:27] like South Korea and Japan and the UK
[26:29] having have to start dumping all the
[26:31] stocks they have.
[26:33] Okay.
[26:34] My last chapter today,
[26:37] US is reminded that real world stuff
[26:40] matters. I really didn't know what to
[26:41] title this chapter, to be honest. Um
[26:45] it's it's crazy. Uh
[26:48] It's the background that I have for this
[26:51] chapter
[26:52] is I I kind of just said it, but I I
[26:54] want to do it one more time. So, for
[26:56] those that don't know,
[26:59] when the US divorced from the gold
[27:00] standard, okay? So, a US dollar note
[27:03] used to be redeemable for dol- gold. So,
[27:05] you couldn't just print them out of thin
[27:06] air, because you can't just print gold
[27:08] out of thin air. You can't just print
[27:09] gold out of thin air because mother
[27:11] nature, cuz physics, cuz the laws of the
[27:13] universe. Bitcoin is the same way.
[27:16] Because of proof of work, Bitcoin is
[27:18] governed by the physical realities of
[27:21] the world. You cannot just print these
[27:23] things. Now, when the US divorced itself
[27:26] from the gold standard, it allowed to be
[27:28] printed out of thin air, these US
[27:30] dollars.
[27:31] When we decided to do that, and we
[27:32] decided to be the world reserve
[27:34] currency, we took on the role of
[27:36] exporting our currency. That was our
[27:38] primary export, and still is to this
[27:40] day. So, we run what's called a twin
[27:42] deficit, okay? We run these deficits,
[27:45] where we export more dollars than we
[27:48] bring in.
[27:49] We're bringing in electronics,
[27:52] manufactured goods, cars, you name it. A
[27:56] lot of commodities, okay? A lot of the
[27:58] commodities that we need to live our
[28:00] lives. Energy, oil,
[28:03] okay?
[28:04] All of these things, we bring them in
[28:06] for printed US dollars.
[28:08] Okay. So, we've been decades now, guys,
[28:11] doing no real work. We're not producing
[28:13] any of this stuff locally. We're not
[28:15] building factories. We're not innovating
[28:19] in ways to cheaply distribute real world
[28:23] commodities that drive the world
[28:25] forward.
[28:26] We're not doing that. We're just hitting
[28:28] a button and printing money. We've hyper
[28:29] financialized. If you want to make a lot
[28:31] of money in this country, you're a
[28:32] financier. You're on one of the coasts.
[28:35] You're either on the tech tech financier
[28:37] in California, or you're a New York
[28:39] financier in Wall Street. That's who
[28:41] makes the money in this system, because
[28:42] it's how many clever ways can you out
[28:45] finance and financial engineer your
[28:48] balance sheet to do some crazy [ __ ]
[28:51] But, there's no real work. Middle of
[28:52] America, rusted out, the rust belt. All
[28:55] of those jobs are in China, okay? That
[28:57] makes sense?
[28:58] Now, this has gotten so bad that we've
[29:02] totally lost touch as the United States
[29:04] of America of
[29:06] what real world stuff matters. The fact
[29:09] that we can't stand on our own two feet.
[29:10] We can't produce any of the things that
[29:12] we need to go to war, to actually live a
[29:15] sustainable life, to defend ourselves.
[29:18] So, with that context,
[29:20] I want to show you guys this.
[29:22] Scott Bessent says US is in talks with
[29:24] Argentina over a 20 billion dollar swap
[29:27] line. There are major implications from
[29:29] this FT article, okay? First of all,
[29:32] let's listen to our boy Scotty B. He
[29:36] wrote, "President Milei is restoring
[29:38] economic stability after decades of
[29:40] Argentine mismanagement. Markets are not
[29:43] losing confidence in him. They're
[29:44] looking in the rearview mirror. The US
[29:46] Treasury is resolute in our support for
[29:49] his reforms. Okay. Let's hear from
[29:52] Scotty B, and then I've got about five
[29:54] takeaways from this that are just
[29:57] jaw-dropping, in my opinion. All right.
[30:00] Scotty B.
[30:03] A decades, if not a century, of terrible
[30:06] The plan is, as long as President Milei
[30:09] uh continues with his strong economic
[30:11] policies to help him to bridge him to
[30:14] the election. Uh you know, I call this
[30:17] the screens moving to the streets. We
[30:19] are not going to let a disequilibrium in
[30:22] the market be a cause
[30:25] his
[30:26] uh backup in his substantial economic
[30:28] reforms. I don't think the market has
[30:30] lost confidence in him. I think the
[30:32] market is looking in the rearview mirror
[30:35] and is looking at decades, if not a
[30:37] century, of terrible Argentinian
[30:39] mismanagement. And you know, people are
[30:42] concerned. People are skittish. It's
[30:44] very hard to believe that it is
[30:46] different this time, but I believe with
[30:48] President Milei, it is.
[30:52] Okay. So,
[30:53] Bessant and the United States are
[30:55] framing this up as Argentina needs help.
[30:57] It's not Milei's fault. And we're going
[31:00] to save them with 20 billion dollars of
[31:02] printed money. Okay.
[31:04] Let's walk through the takeaways here.
[31:07] One takeaway.
[31:09] Milei was supposed to do austerity.
[31:13] He was the doge before doge, remember?
[31:16] He was shut down the Argentine Central
[31:19] Bank.
[31:20] We're going to have to realize all the
[31:22] debt, the hole in the balance sheet
[31:24] we've created. We're going to go through
[31:25] a ton of pain.
[31:28] Because that's what we deserve. We made
[31:30] mistakes. Someone has to take the loss,
[31:32] and on the other side, we're going to be
[31:33] stronger, we're going to be better for
[31:34] it, we're going to have lessons.
[31:37] He was the original doge.
[31:39] The libertarian that could.
[31:42] [ __ ] [ __ ] And I say that not
[31:46] because I hate any of those ideas. I
[31:47] love those ideas. You guys know, when
[31:49] Milei got elected, I was all in on him.
[31:53] Turns out, political pressure is just
[31:56] too much. Nobody has been able to get
[32:00] reelected and run a political process by
[32:03] enforcing pain on the populace.
[32:07] There is a loss that has to be realized,
[32:09] and nobody is willing to realize the
[32:12] loss. And we saw that, a similar version
[32:14] of that, in the US.
[32:17] After Trump was inaugurated, it was
[32:20] doge, doge, doge. We don't care about
[32:22] Wall Street, we care about Main Street.
[32:24] We don't care if stocks go down. We
[32:25] don't care if we fire a bunch of your
[32:27] friends. We're going to fix our
[32:29] spending, we're going to rein it in,
[32:31] we're going to operate in a surplus.
[32:33] That lasted like 2 weeks before Elon and
[32:37] Trump were fighting over who was closer
[32:39] with Epstein.
[32:41] So, that's the first takeaway. This
[32:43] whole austerity This is a possibility
[32:46] that we're going to live through a time
[32:47] where the world is going to be
[32:49] inflicting on pain, even though it's
[32:51] unclear whose fault it is, who should
[32:52] realize the loss, the populace is going
[32:55] to elect losing and getting crushed.
[32:58] Sorry. The libertarian fairy tale's not
[33:01] going to happen through politics. This
[33:02] is why I say, time and time again, if
[33:04] you want to affect change,
[33:06] open-source software, distributed
[33:08] systems, hard money.
[33:10] That's why I'm not red, I'm not blue,
[33:12] I'm orange. If you think you can change
[33:14] the world in a substantial, scalable way
[33:17] through politics, you are kidding
[33:20] yourself.
[33:21] You engineer a better world with
[33:24] technology.
[33:25] So, let's just make that point clear.
[33:27] Milei in this pipe dream of a
[33:29] libertarian that could, that was
[33:31] austerity and showing us the way,
[33:34] sorry, didn't work out. In fact, failing
[33:37] in a spectacular fashion, I must say.
[33:39] He's asking for printed money and a
[33:42] bailout. Exactly what he campaigned
[33:44] against. No wonder Bessant is saying,
[33:47] "Oh, no, they're Everyone's hating him
[33:49] cuz the rearview mirror." No, how about
[33:51] everyone's hating him because he's
[33:53] running his political process
[33:56] exactly how he campaigned against. Okay.
[33:59] That's number one.
[34:02] Point number two.
[34:04] Um
[34:05] why is the United States not putting
[34:08] America first? I thought Trump was
[34:11] America first.
[34:13] I thought Trump was about focusing on
[34:15] Main Street, about the middle of
[34:16] America.
[34:18] He wasn't going to print a bunch of
[34:19] money and give it to other countries. He
[34:22] was going to tariff them and make them
[34:24] pay us, not us pay them.
[34:27] Why is Trump not putting America first?
[34:30] Why is Trump all of a sudden interested
[34:32] in Argentina? Why is he printing 20
[34:35] billion dollars? We just came off the
[34:36] worst inflationary period in American
[34:38] history. Everyone's still terrified of
[34:40] inflation. Now, the Fed is cutting
[34:42] rates, inflation's picking back up, and
[34:43] we're printing 20 billion dollars, and
[34:44] we're giving it to Argentina?
[34:46] Why?
[34:48] Hmm. Curious, you might ask. Curious.
[34:52] And the last point, the third point,
[34:55] swap lines are done by the Federal
[34:57] Reserve, not by the Treasury.
[35:01] This is a huge deal. It might sound
[35:04] marginal. It might sound like, "Oh,
[35:05] what's the difference? Treasury, Fed."
[35:07] To you, as a Bitcoiner, as a listener of
[35:09] the Jack Mallers show, there's no
[35:10] difference.
[35:11] No, there's a huge difference because
[35:13] the Fed and the Treasury are supposed to
[35:14] be different. The Fed is supposed to be
[35:16] independent. The Treasury is not
[35:17] supposed to be allowed to do swap lines.
[35:20] Now, I bring you to this from September
[35:22] 19th. Steve Bannon floats idea of
[35:24] Bessant running both the Treasury and
[35:27] the Fed.
[35:28] Guys, is this a hint that the Treasury
[35:31] is going to start having oversight over
[35:33] the Federal Reserve?
[35:35] We're going to get yield curve control.
[35:36] We're going to get tons of money
[35:38] printing.
[35:40] The fact that Bessant authored this swap
[35:42] line is a massive subtlety. And the And
[35:46] the mainstream and the public's not
[35:48] going to They're not going to bat an
[35:49] eye. They're not going to blink.
[35:51] But we will.
[35:52] We will. This is a huge deal, okay?
[35:55] There was some
[35:57] crazy dude
[35:59] on the internet that predicted a long
[36:01] time ago
[36:02] that Trump might think about the
[36:05] Treasury having oversight over the Fed.
[36:08] I forget his name. Let's uh
[36:10] Let's hear what he had to say about it,
[36:12] though.
[36:14] Do you guys recognize this guy? I don't.
[36:17] I I honestly believe over the next 12 to
[36:21] 36 months or so, we're going to see
[36:24] drastic changes in
[36:27] monetary policy. Listen, we need Trump
[36:30] to get in office, and we need to
[36:31] understand what his plan is, but he's
[36:33] even hinted at having some oversight and
[36:36] control over the Federal Reserve.
[36:38] Is it beyond us that the way Trump sees
[36:41] himself taming inflation, controlling
[36:44] financial markets while allowing the S&P
[36:46] and assets to rise in the greater
[36:48] interest of the people? Maybe he wants
[36:51] Bessant to be the Fed chairman and
[36:55] lead the Treasury.
[36:57] Is that beyond us? Is Trump going to
[36:59] exercise his right to have further
[37:01] oversight over the Fed? Would that imply
[37:04] and mean that Trump is going to use some
[37:06] form of yield curve control to exercise
[37:09] absolute control at both ends of the
[37:11] market and make sure that assets pump
[37:14] and inflation is relatively tamed at the
[37:16] expense of those that hold the dollar?
[37:18] Is that what he means by weaker dollar
[37:20] and strengthening our exports?
[37:25] Recorded 1 year ago. I don't know that
[37:27] guy. Hey, handsome fellow.
[37:30] Want to introduce him to my girlfriend,
[37:32] tell you that. Handsome fellow, good
[37:34] jawline.
[37:35] No, all jokes aside, um
[37:38] I can never figure out my hair, still to
[37:40] this day. But, I did say
[37:44] the Treasury having oversight over the
[37:45] Fed. Is it beyond Trump to assign
[37:47] Bessant the Fed chair and the Treasury
[37:49] secretary?
[37:51] Guys, is this a hint
[37:55] at that reality? The fact that Bessant
[37:58] is out here authoring swap lines, that
[38:00] is the Fed's job. That is not the
[38:02] Treasury's job. That's a huge deal. The
[38:04] fact that austerity doesn't work in
[38:07] Argentina already needs a bailout, that
[38:09] has huge implications for the United
[38:10] States.
[38:11] Are Do we think we're going to get some
[38:13] form of austerity? Are we going to be
[38:14] living through a depression? No.
[38:17] We're not going to We're going to live
[38:18] through the silent depression, not a
[38:19] great depression. The silent depression
[38:22] is they're going to debase the death out
[38:24] of the dollar, and whoever is a sucker
[38:26] that holds onto these things is going to
[38:28] lose. That's it. Default by debasement.
[38:32] That's what we're going to live through.
[38:34] And the third point that you guys should
[38:37] know is why we're interested in
[38:39] Argentina. Because let's remind
[38:41] ourselves, hold on. All of a sudden,
[38:44] Trump's not America first.
[38:46] He's not against printing a bunch of
[38:48] money out of thin air and giving it to
[38:49] other countries. I thought he was
[38:51] against that. I thought Trump wanted to
[38:52] tariff everybody, and we're going to be
[38:53] so rich, we don't know how to use all
[38:55] the money that he was going to make. And
[38:57] by the way, again, I like this
[38:59] administration. I have great things to
[39:00] say about this administration. I prefer
[39:02] this administration over the last
[39:03] administration, as an entrepreneur in
[39:05] this country. Don't get me wrong.
[39:07] What do I pride myself on, guys?
[39:09] Honesty, okay? Why is Trump interested?
[39:12] Now, if you listen to the mainstream
[39:14] media,
[39:16] you would think that it's because Milei
[39:18] is a Trump ally, right? The fact that
[39:20] America is so polarized, we're so at
[39:23] odds, everything is a fight. The
[39:26] Argentina bailout is all about propping
[39:28] up a Trump ally. These people are
[39:30] stupid, okay? They're so politicized,
[39:33] they can't see past the left versus the
[39:35] right, the blue versus the red. That's
[39:37] all it is. Blah, blah, blah, blah, blah,
[39:38] blah, blah.
[39:40] Okay, let me tell you guys what it
[39:41] actually is about.
[39:44] China-US clash over major Argentina
[39:47] currency swap line. What if I told you
[39:50] that Argentina has real stuff?
[39:53] Real commodities, stuff.
[39:57] Oil,
[39:59] uranium,
[40:00] rare earths, you know, stuff that run
[40:03] the world. You know the car that you get
[40:05] in to drive? It needs stuff.
[40:08] You know the phone that you use to run
[40:10] your life? It's produced with real
[40:11] stuff.
[40:12] Where does this real stuff come from?
[40:14] How do we obtain it? Are people going to
[40:16] take printed US dollars forever in
[40:18] exchange for real stuff?
[40:21] No, they're not.
[40:24] So, what if I told you that the US
[40:27] bailed out Argentina because if we
[40:28] didn't, China was going to?
[40:31] What if I told you that? Would that make
[40:32] more sense than this political
[40:35] infighting that is also tiresome?
[40:39] China's growing influence in Latin
[40:41] America. For more than two decades,
[40:43] China has developed close economic and
[40:45] security ties with many Latin American
[40:47] countries, including Brazil, Peru, and
[40:49] Venezuela. But Beijing's increasing sway
[40:52] in the region continues to raise
[40:54] concerns in Washington, prompting
[40:56] greater US engagement.
[41:00] Much of Latin America aligns with China
[41:02] on priority issues, recognizes China's
[41:05] claim over Taiwan, Belt and Road
[41:07] Initiative participant, using or
[41:10] planning to use Huawei equipment in 5G
[41:13] networks. Interesting, right? Now,
[41:18] would you ask, "Well, no, Jack, you're
[41:20] wrong. The US isn't isn't trying to
[41:23] source critical minerals. They're not
[41:24] trying to source rare earths. They're
[41:25] not trying to source commodities. We're
[41:27] good. What are you talking about? We're
[41:28] just We're doing it cuz we're good
[41:30] guys." Or Trump's doing it because
[41:31] Trump's trying to prop up his friend.
[41:35] That's the CNN says Trump is printing
[41:38] $20 billion to prop up his friend.
[41:42] Are these people stupid? Do they have a
[41:45] pea for a brain?
[41:48] How about this from the Financial Times?
[41:50] US in talks to fund multi-billion dollar
[41:52] mining initiative for critical minerals.
[41:54] Okay, interesting. Trump's team explores
[41:56] government-backed manufacturing boost.
[41:59] Discussions center on how to use money
[42:00] from a $550 billion fund to spur
[42:03] construction of factories and other
[42:05] infrastructure. Interesting. US Antimony
[42:09] Corp wins $245 million dollar Pentagon
[42:12] contract to build a defense stockpile.
[42:14] Interesting. Lithium Americas soar on
[42:17] report that Trump's administration is
[42:19] going to take an equity stake in the
[42:21] company. Interesting. From the Atlantic,
[42:24] the US is quietly pausing some arms
[42:26] sales to Europe. As part of the America
[42:29] First agenda, the Department of Defense
[42:31] is stockpiling its weapons because we
[42:33] don't have enough real stuff to produce
[42:34] any more for Europe.
[42:36] So, when people say, "Oh, I heard Europe
[42:38] and Russia are about to go to war." Hey,
[42:41] let me break it to you. No, they're not.
[42:43] Because Europe doesn't have the weapons
[42:45] to go to war against Russia.
[42:47] And they're not getting it from us cuz
[42:48] we don't have them either.
[42:50] So, why is the United States getting in
[42:52] a swap
[42:54] deal, a bailout with Argentina?
[42:57] Because we have to get back to owning
[43:00] real stuff.
[43:02] We're in this loan to own
[43:04] because they didn't want to lose it to
[43:06] China. That's why.
[43:08] Don't listen to CNN. You get your truth
[43:10] here. They did not want to lose that
[43:13] relationship to China.
[43:15] So, what does this mean for all of us,
[43:17] guys? The money printing has begun.
[43:22] You have to print the money. If you want
[43:24] access to real stuff, real commodities,
[43:26] real scarce materials,
[43:29] you want to be able to produce stuff in
[43:31] this country.
[43:32] You want something from South Korea?
[43:35] Give them a swap line. Print the money.
[43:38] You want
[43:40] commodities and oil
[43:42] from Argentina?
[43:44] Okay.
[43:45] Print the money.
[43:48] So, this whole idea that we were going
[43:50] to tariff everyone, the tariffs were
[43:52] going to finance all this stuff. Uh Elon
[43:54] was going to come in and run a tight
[43:56] ship, and he was going to fix
[43:57] everything. [ __ ]
[44:00] [ __ ] Sorry, kids. Kids in the back
[44:02] of the car, sorry. Close your ears.
[44:06] [ __ ]
[44:08] And it's fine. I'm not mad at it.
[44:12] It's just the truth. It's just the
[44:13] truth.
[44:14] It's just the truth. I would be mad at
[44:17] it if someone tries to convince you not
[44:19] to buy Bitcoin. Because they're going to
[44:21] have to print the money. They're going
[44:23] to have to debase the dollar.
[44:27] It is
[44:29] default by debasement. So, you have to
[44:32] have to have to get yourself and your
[44:35] family and your loved ones in a money
[44:38] that can save you, that can protect your
[44:40] time and energy and effort and labor.
[44:42] Protect your savings.
[44:44] Because listen, the world is changing.
[44:47] Okay, the world order is changing, and I
[44:49] think it's for the better. No country,
[44:51] no central bank, no corporation should
[44:54] be responsible for dictating the global
[44:57] time and energy and how we price it and
[44:59] how we exchange it. That should never be
[45:00] a thing, right? I think we can all agree
[45:02] on that. So, the fact that the world is
[45:04] changing is great. The US has to get
[45:05] back to doing real proof of work, to
[45:07] actually producing real stuff. Okay?
[45:10] The dollar The worth of the dollar has
[45:11] to go down. It's artificially
[45:12] strengthened. It has to debase against
[45:14] gold and Bitcoin.
[45:16] So, we all agree with this. I would
[45:18] prefer we get there without a lot of
[45:20] violence. I would prefer no World War
[45:21] III.
[45:22] Let's all just Okay. Fair enough.
[45:26] The US will start producing stuff. The
[45:28] dollar will get debased and weakened.
[45:30] Gold will soar to the moon. Bitcoin will
[45:33] soar to the moon. We'll all move on.
[45:35] Multipolar world. Fair. Okay.
[45:38] I'm not mad about that.
[45:40] Just understand what's happening.
[45:42] Appreciate what we're living through.
[45:48] CNBC gets on and says,
[45:50] "If you You're buying Bitcoin? Why don't
[45:53] you buy the 10-year Treasury?" By
[45:55] listening to this show, you'd have to
[45:57] understand that they're either stupid or
[45:59] malicious. Either one is bad. Either
[46:02] one, do not take financial advice from.
[46:07] I hate when people say, "Oh, well, they
[46:08] don't know any better." That That
[46:10] doesn't help my case.
[46:12] My family
[46:14] gets less housing,
[46:16] less health, less vacations, less
[46:19] education
[46:21] because they didn't know any better? I
[46:22] don't give a [ __ ] how much they know.
[46:24] Then stop giving financial advice on
[46:26] television.
[46:31] Buy some Bitcoin, guys. Buy some
[46:33] Bitcoin. So, the last chapter I got,
[46:35] Bitcoin fixes this. So, this tweet from
[46:38] Elon is a funny meme. No, you can't just
[46:41] print money infinitely. And then he's
[46:43] got the little piece of code that says
[46:45] while true, print money. So, he's saying
[46:47] you can't stop them from printing money.
[46:49] Uh yes, you can. Bitcoin quite literally
[46:52] fixes this. Um so, this is the piece of
[46:55] Bitcoin's code that uh
[46:59] you know, it's the whole halving, block
[47:01] reward, you know, reduce the new coins
[47:04] rewarded until they're gone.
[47:06] So, Bitcoin does fix this. It's right
[47:10] here. You can go look at it on GitHub,
[47:12] and this is what it creates. It creates
[47:14] a monetary asset that's literally
[47:16] finite. And by the way, gold is scarce.
[47:19] It's not literally finite. If the gold
[47:22] price keeps going up, we're going to
[47:23] find more gold. Elon said, "If you get
[47:25] the gold price high enough, I'll go to
[47:27] Mars and get some."
[47:28] There's gold everywhere. There's just
[47:31] not gold in abundance because it costs
[47:33] too much to go get the gold. We know
[47:35] where more gold is. Just send the price
[47:37] high enough, I'll go find more gold. You
[47:39] can't find more Bitcoin. So, Bitcoin
[47:43] literally fixes this, Mr. Musk.
[47:45] Literally fixes this. Let's hear from
[47:49] our boy, Ray Dalio, on Bitcoin.
[47:54] Well, the evolution of Bitcoin over the
[47:56] years is one of the things that has um
[48:01] influenced changes in my view. Um it has
[48:05] proven itself.
[48:07] Um something like 10, 11 years ago,
[48:10] imagine the programming of this. And
[48:13] here's the you throw it out, and that's
[48:14] the idea. It has not been hacked. It has
[48:19] um
[48:20] operated it it is built. It has come an
[48:23] amazing way um over that 11 years to be
[48:28] um
[48:29] maybe probably the most excited topic
[48:32] among a lot of people. Um and has been
[48:36] used and and is now um has obtained, you
[48:40] know, the status of having imputed
[48:43] At the same time, it is one of those
[48:47] assets that is an alternative money. I
[48:50] think we're entering an era where um
[48:54] there's going to be a competition of
[48:56] moneys
[48:57] um because of the printing of fiat money
[49:02] um and the depreciated value, there will
[49:06] be a competition of moneys um and
[49:09] Bitcoin is part of that competition.
[49:15] Ray gets it. Ray Dalio gets it.
[49:18] There will be a competition of moneys.
[49:21] The world will have an open competition
[49:24] for the best place to store your time,
[49:26] your energy, your effort, your labor.
[49:28] Cuz people misunderstand money.
[49:31] They think, "Oh, money is just for how I
[49:34] get
[49:35] from point A to point B, from how How do
[49:37] I hand money from me to the pizza man?
[49:40] It's not only
[49:42] traveling value through space, which is
[49:44] how do I get money from the US to China?
[49:46] How do I get money from me to the pizza
[49:48] man? How do I get money from me to my
[49:49] employees?
[49:51] It's traveling through time. How do I
[49:53] get money from the year 2025 to the year
[49:56] 2125?
[50:00] How do I get the value I just created
[50:02] for those around me? How do I get that
[50:03] money
[50:04] to do me some good 10 years from now, 20
[50:07] years from now, 50 years from now, five
[50:09] generations from now?
[50:11] There will be an open competition for
[50:13] who can do it the best.
[50:16] He's right. And Bitcoin is in the heat
[50:19] of that competition. Bitcoin and gold
[50:21] are winning by a mile.
[50:23] And Bitcoin is going to smoke gold over
[50:27] the long term.
[50:28] It already has been smoking gold. Um
[50:30] let's hear from our boy Eric Trump.
[50:34] And the future is incredible. The future
[50:37] is bright. The future is incredible. And
[50:39] I think fourth quarter of this year is
[50:40] going to be unbelievable for a host of
[50:41] reasons. So, So, how do you think
[50:43] Bitcoin's going to go?
[50:45] I've always said that I think in time
[50:46] Bitcoin surpasses a million dollars.
[50:48] Um I think with quantitative easing that
[50:50] we're we're going to have and starting
[50:51] tomorrow when the announcement's made,
[50:53] and and all signs point in the right
[50:54] direction. Um unless this guy is really
[50:56] off his rocker, but then he's going to
[50:57] just get laughed out of this country.
[50:58] But, you know, I think starting tomorrow
[51:00] you're going to see rate drops. You see
[51:01] what's happening with M2, which is, you
[51:02] know, the money supply around the world,
[51:04] which is which is skyrocketing right
[51:06] now. Um fourth quarter has always
[51:07] historically been, you know, the best
[51:09] quarter
[51:11] yeah, generally the best quarter for
[51:12] cryptocurrency.
[51:15] I agree.
[51:17] I agree. I think Bitcoin's going to heat
[51:19] up. Gold usually runs first. Bitcoin
[51:23] outperforms.
[51:26] We're entering an era of monetary
[51:28] competition.
[51:30] Monetary competition.
[51:33] And we're just getting started.
[51:35] Rocks are outperforming bonds, guys.
[51:38] They have to print the money.
[51:41] All new investment into this country has
[51:43] to come through printed money.
[51:44] All strategic relationships with those
[51:46] that have real raw world commodities is
[51:49] going to have to come through printed
[51:50] money
[51:51] in order
[51:53] to reindustrialize America, bring back
[51:55] the middle class,
[51:57] the dollar has to get substantially
[51:59] weaker, substantially weaker.
[52:01] Bitcoin
[52:03] fixes this. Bitcoin coin fixes this.
[52:07] And that's my one long rant. We got it
[52:10] in a little under an hour. Um all right.
[52:13] So, with that, uh as always, I owe you
[52:16] guys a little bit of Q&A. Let me blow my
[52:18] ugly face up.
[52:21] Let's see here.
[52:22] What's the best way to do this? There we
[52:24] go. You guys can see me, right?
[52:27] There we go. There we go.
[52:29] Uh and let me get the Q&A up.
[52:32] Let's see.
[52:36] Uh ask questions. For those who don't
[52:38] know,
[52:39] I got some of my team in the chat with
[52:41] you. So, ask questions. I'm happy to
[52:44] answer them. Uh I don't have too much
[52:46] time, but I got enough to answer your
[52:48] questions, tell you that. Uh all right,
[52:51] what the hell am I doing? Oh, here we
[52:52] go.
[52:53] Okay.
[52:58] Nope, not on this one. Please.
[53:03] There we go.
[53:05] All right, let's do some Q&A.
[53:08] Um
[53:12] Do you agree that the next financial
[53:14] crisis will be a worldwide sovereign
[53:16] debt crisis?
[53:18] Um yeah,
[53:21] I do. Well, I think we've been living
[53:23] through a sovereign debt crisis,
[53:25] generally speaking. Um so,
[53:29] yes, my my answer is yes. Is that uh
[53:32] we're living through a sovereign debt
[53:33] crisis. But again, I think that
[53:36] the default, so the crisis is a slow
[53:38] debasement. You know, the United States
[53:40] is never going to default cuz they can
[53:42] print what they owe.
[53:43] And so, you're just going to get a
[53:45] weaker and weaker and weaker dollar.
[53:47] Um
[53:50] Okay, Nick Szabo recently resurfaced on
[53:52] Twitter. What are your thoughts on his
[53:54] contributions within the history of
[53:55] Bitcoin? And what should the roles of
[53:57] early cryptographers like Nick and Adam
[53:59] back be in Bitcoin?
[54:01] You know, one of the most important
[54:02] properties of Bitcoin is that there is
[54:04] no single individual that has any, you
[54:07] know,
[54:08] controlling role or authority. So, I I
[54:14] love Nick. I think we're all forever in
[54:16] debt to Nick's contributions, even
[54:18] before Bitcoin. Just his work in
[54:21] monetary theory, monetary history, um
[54:25] what he's obviously been able to
[54:26] contribute to cryptography and what has
[54:29] become Bitcoin. Bitcoin, what Satoshi
[54:30] did was really take a bunch of
[54:33] independent innovations, and his
[54:35] innovation was combining them all in a
[54:37] way that worked. So, I think Nick, guys
[54:39] like Adam, are unbelievable contributors
[54:42] to humanity as a whole through their
[54:44] technological innovations and
[54:46] contributions. With that being said, I
[54:48] mean, Nick's just a dude.
[54:49] I'm I'm glad to see him back in the in
[54:51] the conversation, but Nick's just a
[54:53] dude, just like you and I are. And so,
[54:56] you know, his opinion
[54:58] Here's the thing that I don't think
[54:59] people understand. In order to like
[55:01] change Bitcoin, you have to convince
[55:04] everyone that actually runs Bitcoin to
[55:07] update their software. So, you know,
[55:10] you know, I remember Roger Ver had the
[55:13] most Bitcoin in the world, and he
[55:14] invested all the big biggest Bitcoin
[55:15] businesses, and he got all of the
[55:17] businesses like Coinbase to try and
[55:19] force change down all of our throats.
[55:21] But guess what? We the people didn't
[55:23] want to change. So, we said [ __ ] you,
[55:26] and Bitcoin didn't change.
[55:28] So,
[55:29] you know, not to say that Nick's a a bad
[55:31] guy or he's trying to force bad on
[55:32] Bitcoin. But my my my point is that, you
[55:35] know, Nick's thoughts and opinions
[55:37] should be measured on their own merits.
[55:39] They should be measured on the substance
[55:40] of them, not him himself. He of course
[55:43] comes with some credibility, so you
[55:45] might, you know, look to his opinion on
[55:47] cryptography more than some random dude.
[55:50] But generally speaking, the coolest part
[55:51] about Bitcoin is everyone's ideas,
[55:54] everyone's thoughts, everyone's words
[55:55] are judged on their merit. You're judged
[55:57] on your proof of work. This isn't a
[55:59] credentials-based system where because
[56:02] you were someone in the past or because
[56:04] you went to Harvard, like your opinion
[56:07] matters more. That's just not how it
[56:08] works. So, I'm glad Nick's back cuz he's
[56:10] smart and he's been a net positive for
[56:12] Bitcoin, undoubtedly. But, you know,
[56:14] we'll judge what he says based on merit.
[56:17] Um right? I don't know if that if that
[56:19] makes sense. Um but the these OGs, as
[56:22] you call it, they don't have any
[56:23] outsized they don't have any greater
[56:25] role than you.
[56:26] You can create a company just like Adam
[56:28] has, just like I have.
[56:30] You can run a Bitcoin node just like
[56:32] Adam does, just like I do.
[56:34] There are like
[56:35] anyone can be anything, and
[56:39] consensus is the only way to affect
[56:41] substantial change to the protocol, and
[56:44] we all are competing in a truly free
[56:46] market where the best ideas and the best
[56:50] merit, the best proof of work is what
[56:51] lasts.
[56:53] What cold storage wallet do you use, and
[56:55] what would you recommend? Uh I use
[56:57] Coldcard.
[56:59] Uh I also use Bitkey now. I I got a
[57:01] little bit in Bitkey. So, I would say if
[57:03] you're more sophisticated, you want a,
[57:06] you know,
[57:07] a more hardcore solution, I would go
[57:10] Coldcard.
[57:12] If you want uh maybe
[57:15] more user-friendly solution. And And
[57:17] they're both they're both fine, by the
[57:19] way. Not not picking winners. I'm just
[57:21] being honest. Uh I would go Bitkey. So,
[57:24] Coldcard or Bitkey would be my two
[57:25] recommendations, kind of depending on
[57:27] where you are in your Bitcoin journey,
[57:29] how much you want to use another
[57:31] company. Like Block is obviously very
[57:33] involved in the Bitkey product.
[57:35] Coldcard, you buy it, and then it's all
[57:37] you. You you it's just you, yourself,
[57:39] and I.
[57:41] Um okay. Yo, Dylan, can you ask Jack if
[57:44] he sees Bitcoin as slightly inflationary
[57:47] because of mining or deflationary
[57:49] because of the natural state of the free
[57:51] market?
[57:52] Um
[57:53] I mean, technically, Bitcoin has some
[57:57] inflation because there are new coins
[58:00] that are being minted every 10 minutes
[58:02] on average.
[58:03] However, I personally view Bitcoin as if
[58:07] all 21 million already exist.
[58:10] So, in my opinion,
[58:12] it's not as if we're finding new
[58:14] Bitcoins
[58:16] every 10 minutes.
[58:17] 21 million already exist. It's just they
[58:20] come out over time.
[58:23] And so, but when I think of how much
[58:25] Bitcoin I own, I think of it out of 21
[58:27] million, not out of 19 million something
[58:30] something.
[58:31] And so, from my standpoint, I think of
[58:32] it as deflationary where there's only
[58:34] ever going to be 21 million. I own X
[58:37] amount of that 21 million, and
[58:38] everything around me is in abundance
[58:41] compared to the thing I own that is
[58:42] definitively scarce. But if you're
[58:44] talking about like um
[58:46] you know, the commodity premium, like
[58:48] the cost to produce, mining economics,
[58:50] yes, there is,
[58:51] you know,
[58:52] like
[58:53] if you wanted to understand
[58:55] the natural sellers in Bitcoin. Like
[58:58] people are paying putting capital up
[58:59] front to produce this asset. They're
[59:01] going to have to recoup their costs
[59:02] somehow. So, there is like the
[59:05] equivalent to a corn farmer right now.
[59:07] And corn farmer puts up a bunch of
[59:09] capital to farm the corn. They sell the
[59:10] corn. Some of that capital goes to then,
[59:13] you know, paying off the financial
[59:15] burden that they took to farm it in the
[59:16] first place.
[59:17] So, that is true.
[59:19] But I don't think the Bitcoin market
[59:21] thinks of Bitcoin supply as 19 million
[59:24] to I don't think it I think it's there's
[59:26] 21 million. They just
[59:28] come out you know, it it's issue and
[59:30] it's stuck in time, not in the ground.
[59:33] Right? I I've said in one of my
[59:35] presentations, it became a popular meme,
[59:36] "Gold is stuck in the ground.
[59:38] Bitcoin is stuck in time." So, but with
[59:42] time, we'll get to the 21 million. So,
[59:44] I I I would lean towards deflationary.
[59:47] Question, "Theory's going around that
[59:49] the United States could acquire US
[59:51] companies that hold Bitcoin instead of
[59:53] buying Bitcoin directly to acquire a
[59:56] holding. What are your thoughts?" Yeah,
[59:58] I mean,
[59:59] the US is running like this quasi
[60:02] China playbook, where, you know,
[60:06] I said that, you know, it seems like the
[60:08] left was running a quasi China playbook
[60:12] by censoring free speech. Like you had
[60:15] the Biden administration going into
[60:18] Facebook, Instagram, Twitter, and
[60:20] literally pulling posts off, threatening
[60:23] leadership team
[60:25] with
[60:25] harsh stuff if they don't censor speech,
[60:28] if they don't form the public's opinion
[60:30] around something like COVID a certain
[60:32] way. We all know that as fact. And so
[60:34] that is the US with Chinese
[60:36] characteristics when it comes to free
[60:37] speech. I would say the right is much
[60:40] more pro free speech. As far as I'm
[60:42] concerned, we don't know much of the
[60:44] right censoring free speech yet.
[60:46] Right? You've got Elon and these guys
[60:48] that are really championing free speech,
[60:50] but the US is now the US with Chinese
[60:52] characteristics because we're like
[60:54] nationalizing businesses, like taking
[60:56] stakes in Intel, just bit and Trump is
[60:59] bragging that he's not paying for this.
[61:02] So, he's just using force, violence to
[61:05] steal from people.
[61:07] That's China, right? That's the US with
[61:10] Chinese characteristics. But the
[61:11] question is,
[61:12] yeah, I mean,
[61:14] how do you get out of the hole we're in?
[61:17] You know, you're starting to see which
[61:19] uh which doesn't matter what path you
[61:20] walk, you're getting the US with Chinese
[61:22] characteristics. So, would it surprise
[61:23] me if the United States said, "Hey, we'd
[61:26] like a little bit of Bitcoin and we're
[61:27] going to get it from taking an equity
[61:30] equity stake in your
[61:31] uh cap table as opposed to going and
[61:33] buying it in the free market?" It
[61:34] wouldn't surprise me, but I think it's
[61:36] unfortunate. I do not like the US with
[61:39] Chinese characteristics. Um
[61:42] That is the furthest thing from a free
[61:43] market. And so I would prefer them
[61:45] buying it in the open market.
[61:47] Either way is bullish for Bitcoin. I
[61:49] mean, if the United States starts
[61:51] consciously growing its Bitcoin
[61:53] position, that's incredibly bullish for
[61:56] Bitcoin. I would prefer it done in the
[61:58] open market like any rational person,
[62:00] like any free market um activist. "Hey
[62:03] Jack, my buddy Jawad, I don't know how
[62:06] to pronounce that, j a w a d, sorry if I
[62:08] mispronounced it.
[62:10] How do you pronounce that, Jawad? Jawad?
[62:12] My buddy Jawad says that ETH will
[62:15] inevitably surpass Bitcoin in market cap
[62:18] since the technology is revolutionary
[62:20] and Bitcoin will lose against gold. How
[62:23] would you respond?
[62:25] What What groundbreaking evidence for
[62:28] such an outrageous claim?
[62:31] This technology is going to surpass one
[62:34] of the greatest inventions of our
[62:35] lifetime because it's revolutionary and
[62:38] because Bitcoin will lose against gold.
[62:40] Um what's my response to that? For one,
[62:43] gold is losing against Bitcoin. Bitcoin
[62:45] has been consistently outperforming gold
[62:48] for 15 years. It will continue to do so.
[62:51] So, I don't know what you mean lose
[62:52] against gold. Bitcoin's kicking gold's
[62:54] ass and
[62:57] so we'll we'll toss that over there.
[62:59] Like, for example, if 13 years ago I
[63:01] bought gold instead of Bitcoin,
[63:03] I'd be way worse off. Um Bitcoin is the
[63:06] right thing to own for the last 15
[63:08] years. It will be the right thing to own
[63:10] for the 16th year and the 17th year. So,
[63:13] not only is gold or Bitcoin not lost to
[63:15] gold, Bitcoin hasn't lost to anything.
[63:17] It is the king. If you come at the king,
[63:19] you best not miss, Jawad.
[63:21] Secondly, here's my broader rant that
[63:24] I've given on altcoins versus Bitcoin.
[63:28] Bitcoin is money.
[63:30] Okay?
[63:31] Money is our time and energy in an
[63:33] abstracted form. Okay? Money is how we
[63:35] store
[63:37] our effort, our labor, our time, our
[63:39] energy. Everyone listening to this, you
[63:41] get up out of bed every day and you do
[63:44] something valuable for someone. And in
[63:46] return for that, you get money.
[63:48] Money is the market good that you're
[63:50] exchanging for your contributions to
[63:53] society. Okay?
[63:56] It's what we invented to solve for
[63:57] barter. So, I don't wake up and run
[64:00] Strike and try and exchange a day worth
[64:02] of me working on Strike in 21
[64:05] for groceries. No, I get paid money and
[64:09] then I use the money to save and later
[64:11] exchange for the things I need. Okay?
[64:12] Bitcoin's competing for that.
[64:15] The size of that market, okay? Us humans
[64:18] own about 900 trillion dollars worth of
[64:21] stuff.
[64:22] About half of all of the stuff we own.
[64:25] So, real estate, stocks, sovereign debt,
[64:29] currencies, fine art, precious metals
[64:31] like gold. Okay? We own 900 trillion
[64:33] dollars worth of stuff. 400 to 500
[64:36] trillion of it we're using as money.
[64:39] People own a basket of real estate not
[64:41] cuz they're living in 20 houses at once.
[64:43] You can't. You can only sleep in one
[64:44] home.
[64:45] They're owning it cuz they're trying to
[64:46] save money and then later exchange for
[64:50] stuff that they're going to need in
[64:51] their life.
[64:52] They own
[64:53] the sovereign debt because they've
[64:55] monetized it. They own the fine art that
[64:58] they've put on their wall. They They
[65:00] don't want to put 10 million dollars on
[65:02] their wall. The 10 million dollar
[65:03] painting is in a storage vault
[65:06] with like armed guards protecting it.
[65:09] They're not buying the art to consume
[65:11] the art, to wake up and have their
[65:13] coffee like, "Wow, this art is so
[65:15] beautiful. It's 10 million dollars worth
[65:16] of beautiful."
[65:18] You can Google beautiful [ __ ] to to
[65:19] drink coffee to.
[65:21] They're They've monetized the art. Okay?
[65:25] That means Bitcoin's opportunity to
[65:28] disrupt is about 400 to 500 trillion
[65:31] dollars in size. Okay?
[65:33] So, it is going after half the world's
[65:35] problems. It is going after the largest
[65:37] problem we have today, that there is no
[65:38] one single sound money for all of us to
[65:41] store, save, and later exchange our
[65:44] collective contributions to each other.
[65:47] Now, what is something like Ethereum or
[65:49] any of these altcoins? Ethereum,
[65:51] Dogecoin, Solana, any is garbage.
[65:54] At best, these things are technologies,
[65:56] as you said. Supposedly, they're
[65:58] revolutionary. I disagree with that, but
[66:00] I got to shorten up this rant.
[66:05] Technologies are only worth like a few
[66:08] trillion.
[66:10] Apple. Let's take Apple.
[66:12] To me, Apple is one of the most
[66:13] revolutionary technologies. Would you
[66:15] say, Jawad, that
[66:18] Apple is a more revolutionary technology
[66:20] than Ethereum? I would. Everyone I know
[66:23] has an iPhone.
[66:24] This computer is produced by Apple. My
[66:27] phone is Apple. The iPhone and Apple
[66:29] changed the world substantially. You
[66:31] cannot go 20 miles without running into
[66:34] someone or something or some business
[66:36] that is an Apple customer.
[66:38] Right? At least in America.
[66:41] I
[66:42] I'd be hard-pressed to find in a 20-mile
[66:45] radius
[66:46] a piece of this country that isn't in
[66:49] some way relying on Apple computer.
[66:52] That company is worth about 3 trillion
[66:54] dollars.
[66:56] Great company. One of the best ever do
[66:58] it. Steve Jobs is probably the best of
[67:00] the best when it comes to innovative
[67:02] entrepreneurs. It's 3 trillion.
[67:05] Bitcoin is about to pass up Apple
[67:09] already today, right now.
[67:11] Right now.
[67:13] So, if Ethereum is to go on to change
[67:15] the world as much as Apple has, which I
[67:18] think is
[67:19] giving it credit it doesn't deserve.
[67:21] That is far-fetched. I can go I can go
[67:25] thousands of miles without running into
[67:27] someone that actually uses Ethereum.
[67:30] Doesn't speculate on its price on
[67:31] Coinbase like a gambling addict. That
[67:34] actually uses it like I use my iPhone.
[67:38] Okay? Let's assume that people start
[67:39] using Ethereum like they use it an
[67:41] iPhone or an Apple product. And Ethereum
[67:44] goes on to change the world as much as
[67:47] Apple has, which
[67:50] I mean, they're not even close, remotely
[67:52] close. But let's assume that.
[67:54] They'd be worth 3 trillion dollars.
[67:58] They'd be worth like as much as
[67:59] Bitcoin's worth today.
[68:02] So, Jawad,
[68:04] you know, this is this is JV.
[68:07] This is like high school sports against
[68:10] the Chicago Bulls. We're not in the same
[68:13] league.
[68:15] Bitcoin's
[68:16] a monetary instrument that's actively
[68:18] competing, as Ray Dalio just said.
[68:20] Bitcoin's actively competing
[68:22] to be
[68:23] the money for humanity. That's worth
[68:26] hundreds of trillions of dollars. That
[68:27] solves our hardest problems. Ethereum is
[68:31] competing with Solana
[68:33] and and Dogecoin and
[68:35] what are these others um
[68:37] Cardano,
[68:39] Avalanche.
[68:42] They're competing over who's going to be
[68:43] the best technology.
[68:46] Is Avalanche, Cardano, Ethereum, and
[68:48] Solana going to be the new Apple,
[68:50] Amazon,
[68:51] Nvidia? Listen, I don't think so. I have
[68:55] not seen one actual use case outside of
[68:58] gambling for these things.
[69:01] But let's assume they are. Great. We've
[69:03] replaced the mag seven with a new set of
[69:05] technologies. Cool.
[69:07] Not close to the new version of gold or
[69:11] the new money So,
[69:12] hopefully that answers your question.
[69:15] They're just
[69:16] apples to oranges, brother. Ethereum's
[69:18] better off saying, "Hey, we're better
[69:20] than Solana."
[69:21] You look all the way up and start
[69:23] talking [ __ ] about Bitcoin,
[69:25] you're in for a rude awakening, bro.
[69:28] Never in a million years.
[69:30] Okay, strike questions.
[69:33] When Strike will offer loans over
[69:35] 12-month maturity?
[69:37] We're working on it. I mean, the problem
[69:38] is I'm not getting money.
[69:41] Like so So, here's how it works, guys. I
[69:43] find dollars that I can then lend on to
[69:45] you, but the dollars I'm finding aren't
[69:47] giving me
[69:49] more than 12 months. So, I can't give
[69:51] you more than 12 months. As soon as I
[69:52] get more than 12 months, I'll give you
[69:53] more than 12.
[69:54] Does that make sense? But
[69:57] the market right now for Bitcoin
[69:58] lending, there is no more than 12. I
[70:00] mean, maybe.
[70:02] I like there might be a 24-month product
[70:04] that we can we can come out with, but
[70:06] not in any significant scale is the
[70:08] problem. Like we're we're operating at a
[70:10] pretty tremendous scale at this point,
[70:11] so
[70:13] we'll see, but I hear you. Point is I
[70:15] hear you and I'm working on it.
[70:17] Hey Jack, if the Fed cuts interest
[70:19] rates, is Strike going to bring down
[70:20] borrowing rates, too? Thanks. If we can,
[70:22] we will.
[70:23] Um I don't want to commit to anything,
[70:24] but
[70:25] what I pride myself on is trying to make
[70:29] Bitcoin accessible to as many people as
[70:31] possible, and embedded in that is
[70:32] pricing.
[70:33] So, if I can make Bitcoin more
[70:35] accessible by bringing down pricing,
[70:37] that goes for, you know, all of our
[70:38] products, then I'm going to try my best.
[70:40] So, you know, we're watching closely and
[70:42] we're going to try.
[70:43] Strike question. I'd really really like
[70:45] to know as of when I can use the banking
[70:48] features in Europe. You know, pay my
[70:50] rent from my Bitcoin account. Thanks in
[70:52] advance. Greeting from the Netherlands.
[70:53] Shout out the Netherlands. Love that
[70:55] country.
[70:56] Um I'll be in Amsterdam soon.
[70:59] Um
[71:01] we're working on it. It's been a bit
[71:03] harder for us to find banking partners
[71:04] in Europe, but we're working on it.
[71:06] We've got lending and some more Europe
[71:09] features coming super soon. So, we're
[71:12] very excited about that.
[71:14] Question for Strike.
[71:16] Love the platform and have both my sons
[71:18] buying through Strike. My 20-year-old
[71:19] son is looking to use Bitcoin back loan
[71:21] in Australia as an individual. When will
[71:23] this be available? The Australian
[71:25] regulators just are a lot stricter on
[71:27] individual loans as opposed to business
[71:28] loans. So, I don't have a necessary
[71:30] timeline. We're working on it. Um
[71:32] ideally, yesterday. I mean, a lot of
[71:34] this stuff, guys, is not up to me. If it
[71:35] was up to me, I'd launch everything
[71:37] tomorrow. Um it's it's a regulatory
[71:40] battle. Um if if your son can spin up an
[71:44] entity and take it out as a business,
[71:46] that'd be the quickest way. Um but if
[71:48] not, we're working on it. I I promise
[71:50] we're working on it.
[71:51] Uh question. When editable DCA across
[71:54] all customers? I don't have it and it's
[71:56] been a week. Uh update the app. Should
[71:59] be live now. We announced it earlier
[72:00] today. So, should be live now.
[72:03] And that reminds me, I didn't have a
[72:05] Strike section and a 21 section today.
[72:07] Um so, I'll I'll actually just give my
[72:09] updates right after this last question.
[72:11] Last Strike question. In Australia, we
[72:14] are missing out on a lot of the features
[72:16] like bill pay and Bitcoin back loans. Is
[72:18] it likely Strike will get this shipped
[72:20] to us? Um is there any lead time if so?
[72:22] Yeah, we're working on it. Um we're
[72:24] working on this stuff to the best we
[72:25] can. Uh a lot of this stuff Sometimes
[72:28] it's regulatory.
[72:30] Sometimes people won't work with us
[72:32] because we're new and they don't know
[72:34] who we are. We have a much bigger
[72:36] presence in America.
[72:37] But uh we're working on it all. I think
[72:39] that's the coolest part about this is
[72:40] hopefully you guys can tell we're
[72:42] listening to you, we hear you, and we
[72:45] build as fast as we can in response.
[72:47] We've shipped like a major feature every
[72:48] single week, which has been really fun.
[72:51] And
[72:52] uh
[72:53] and
[72:55] I just enjoy the fact that you guys can
[72:57] get on a live stream,
[72:59] tell me what you need, and we have the
[73:01] resources and the culture and the
[73:03] mission to just go out and turn around
[73:05] and build it for you. So, all this stuff
[73:07] is on our road map. Um we're working on
[73:09] it. I know it's a little frustrating at
[73:10] times. Um but I hear you. I hear you
[73:13] loud and clear. Um okay, there are a few
[73:16] uh
[73:17] stranded questions that aren't related
[73:19] to anything. One's asking about the
[73:21] Ryder Cup. So, I'm actually going to
[73:23] override that and give you guys a quick
[73:27] update on Strike because it'll answer
[73:31] some of the questions. So, let me
[73:33] reshare my screen. Got 5 more minutes
[73:35] left in the show before I got to go. But
[73:38] for Strike, what are some Strike
[73:39] updates? Um
[73:41] we launched editable DCAs. So, and this
[73:44] is official. So, if you don't have it,
[73:46] update your app, you'll have it. It's
[73:48] rolled out to everybody. You can now you
[73:51] don't have to cancel an existing DCA and
[73:53] start over. So, we have these no-fee
[73:55] DCAs. The no fee kicks in after a week
[73:58] to prevent people from really gaming the
[73:59] system. And so, after a week, we waive
[74:02] the fees. You can stack Bitcoin without
[74:04] fees. You can withdraw to cold storage
[74:06] for free. Your direct deposit, no fees.
[74:08] And now you can edit the DCA. So, often
[74:10] customers will, during a dip, they'll
[74:13] want to increase the DCA, stack a little
[74:14] bit more. And I guess during a price
[74:17] run, I guess some customers wanted to
[74:18] let um bring their DCA down a little
[74:20] bit, average down. You can do that. You
[74:22] can now edit the DCA
[74:25] however you'd like. Um
[74:28] and uh it doesn't cancel your existing
[74:30] no fee. And we also have multiple DCAs
[74:33] at once.
[74:34] So,
[74:35] I mean, Strike pound for pound, no-fee
[74:37] DCA, editable DCAs, multiple DCAs,
[74:40] no-fee direct deposit,
[74:42] uh free on-chain withdrawals to cold
[74:45] storage. You can literally have a no-fee
[74:47] DCA, edit it when you want, and have
[74:50] automated withdrawals to your
[74:52] uh cold storage, to your self-custody.
[74:54] It's really remarkable to be quite
[74:55] honest. So, we're incredibly proud of
[74:58] that. Um
[75:00] so, I wanted to shout out out, and then
[75:03] I had a few more things.
[75:06] Um
[75:08] Oh, right. Our world region. So,
[75:11] our what we call world regions, which is
[75:14] not UK,
[75:17] EU, US, Australia. So, primarily Africa,
[75:21] Latin America.
[75:23] Uh we launched virtual US dollar
[75:26] accounts for businesses. So, we launched
[75:28] these virtual US dollar accounts for
[75:30] individuals, and this product has been
[75:32] like flying off the shelf. It's one of
[75:34] our fastest-growing sectors of the
[75:35] business. Our primarily people in Latin
[75:37] America and Africa that are using our
[75:39] virtual US dollar accounts to onboard to
[75:42] Strike, buy Bitcoin, and get some
[75:43] Tether. So, this allows you free ACH and
[75:46] wire deposits from banks or virtual
[75:48] accounts. You can deposit from like your
[75:50] TransferWise account. And then we also
[75:52] allow the reverse. So, you can cash out
[75:54] of your Tether, you can cash out of your
[75:56] Bitcoin, and you can withdraw via ACH
[75:58] instant bank transfers that take a few
[76:00] seconds, and wires.
[76:02] And so, all of our customers that have,
[76:05] you know, spotty banking access and an
[76:07] inability to interface with the US
[76:10] dollar infrastructure, we have these
[76:12] virtual accounts now. So, incredibly
[76:14] popular. A lot of people using their
[76:16] TransferWise accounts to get money into
[76:17] Strike in Latin America and Africa.
[76:19] We've turned this on for businesses. And
[76:22] what's really cool is you're seeing
[76:23] customers in Brazil, in Korea, in
[76:27] Nigeria, in South Africa, they're
[76:29] depositing a ton of money with these
[76:32] virtual accounts. They're buying
[76:33] Bitcoin, and then they're getting a loan
[76:34] against the Bitcoin and financing their
[76:36] life. You know, I had someone in Korea
[76:38] that's taking out massive loans, buying
[76:41] a house and stuff. It's crazy. So,
[76:44] check this out. Virtual accounts. I know
[76:47] majority of of the listeners on this
[76:49] show are from the Western world. I think
[76:51] it's like half the US, and then it's UK,
[76:53] EU, Australia, but there's definitely
[76:55] Latin America and Africa out there. So,
[76:57] shout out to you guys. We're building
[76:58] for you, too. We want to make Bitcoin
[77:00] accessible to everyone, and this one was
[77:02] for you.
[77:04] I think those were the primary primary
[77:06] uh
[77:07] big ones. We're making a ton of uh
[77:10] progress on lending expansion. So, more
[77:13] US markets and EU is any day now. Um
[77:17] very, very soon. Making a lot of
[77:19] progress on New York. Very, very soon,
[77:21] hopefully. So, very excited about that.
[77:24] And then as far as 21, I mean, people
[77:26] noted that uh they could find our our
[77:29] public filing on the SEC website. So, I
[77:31] saw some people tweeting about that. If
[77:32] you're interested, you can go check that
[77:34] out. But we're still sitting with our
[77:36] 43,514
[77:37] coins sitting in escrow.
[77:39] Um and uh again, I don't think we're a
[77:41] Bitcoin treasury company as people are
[77:43] defining them today. Um we're a Bitcoin
[77:45] company. We have a Bitcoin treasury that
[77:47] will continue to add to in size, but we
[77:49] also have uh some Bitcoin businesses
[77:51] that we're building that we're very
[77:52] excited about. So,
[77:53] I think that's all I got for today. Um
[77:57] I have an event in 25 minutes
[78:00] that I got to make, and I got to shower.
[78:02] So, with that, I think I'm going to sign
[78:06] off, guys. I see Oh, Dylan wants me to
[78:09] answer the optional questions. I don't
[78:11] know what he's talking about. Oh, here
[78:12] we go.
[78:13] Hey Jack, how is the US going to win the
[78:15] Ryder Cup in 2027? I don't know. I I'm
[78:18] new to golf. I'm new to golf, so I don't
[78:21] know if I have a good answer to that.
[78:22] But I enjoyed watching the Ryder Cup.
[78:24] I'm picking up golf. If any of you guys
[78:27] have golf tips, or send me like some
[78:29] good the golf clubs I should buy, like
[78:32] give me
[78:33] DM me some golf [ __ ]
[78:35] Hit me I got to get good at this game.
[78:36] So, I enjoyed watching the Ryder Cup. Um
[78:39] almost an unbelievable comeback. It felt
[78:41] like the March Madness for golf. I
[78:43] really enjoyed it. Glued to your seat
[78:45] type of vibe. Um I don't know how we're
[78:48] going to win. I I think
[78:50] I I mean, this is a dumb answer. Play
[78:51] better? Like I mean, we got the best
[78:53] player in the world, and he didn't play
[78:54] like the best player in the world, I
[78:55] think. So, we didn't play very well the
[78:57] first 2 days. So, I don't know the
[79:00] answer, though. I'm I'm not a golf
[79:01] expert yet. I'll stick to being a
[79:02] Bitcoin expert.
[79:04] Um
[79:07] Hey Jack, what is the most challenging
[79:09] thing about living 100% on a Bitcoin
[79:10] standard?
[79:13] I don't know. I'm cha After Strike
[79:16] launched Bitcoin back loans, I'm
[79:18] chilling. I I'll say this.
[79:20] What I would much rather have is a line
[79:22] of credit. I've got multiple loans out
[79:25] with Strike. I want a way to consolidate
[79:27] all my loans into just a line of credit
[79:29] cuz the way I use Strike is I take out a
[79:31] loan cuz I have this one fixed expense.
[79:34] And then I'm using, you know, the money
[79:35] to pay for my real-world stuff, right?
[79:38] And then I have to take out another loan
[79:39] cuz another expense comes up and then
[79:41] and so on and so forth and so on and so
[79:42] forth. So you end up with three, four,
[79:44] five loans where all I want is a line of
[79:46] credit where like I get a paycheck that
[79:48] comes in, I get 100% of that paycheck in
[79:50] Bitcoin and Strike just increases my
[79:52] line of credit so that I can use these
[79:54] dollars to pay my credit card, pay my
[79:56] HOA, pay my [ __ ]
[79:58] And so I think but that it's not a
[80:01] problem for me today. I mean
[80:04] it's an incredible service. Bitcoin is
[80:06] growing 50% a year, which means it's
[80:08] doubling every 18 months. So if you live
[80:10] on a Bitcoin standard, your net worth
[80:12] doubles on average every 18 months. It's
[80:14] [ __ ] insane.
[80:16] And so I think at Strike we're just
[80:17] perfecting the user experience and we're
[80:19] making it better and better and better.
[80:21] So I know for a fact in Q4 we're coming
[80:23] out with loan consolidations and line of
[80:25] credit. A line of credit loan's going to
[80:27] change the game. It's going to be so
[80:30] automated. You have your direct
[80:31] deposits, you've got your bill pay,
[80:32] you'll have a line of credit that's
[80:34] dynamically contracting or expanding.
[80:36] It's going to be beautiful. So um I'm
[80:39] chilling now. I feel great. But um once
[80:43] the line of credit comes I think
[80:46] I think it's going to change everything.
[80:48] Even more than we've al- I mean we're
[80:49] already we're 6 months into this
[80:51] product. We're already one of the
[80:52] biggest Bitcoin lenders in the world and
[80:55] we haven't even gotten to some of the
[80:57] bigger features. We haven't launched
[80:58] Texas yet. We haven't launched
[80:59] California. We haven't launched New
[81:01] York. We haven't launched Europe in the
[81:02] UK. We haven't launched line of credit.
[81:04] So
[81:05] I mean
[81:06] I'm just very excited about that.
[81:09] Um okay.
[81:11] Uh
[81:12] I'm out of here. I got to go shower uh
[81:15] and head to this event. But peace and
[81:17] love from the woods. You guys are the
[81:18] absolute best. We're almost at 40,000
[81:20] subscribers. If you don't mind hitting
[81:23] subscribe
[81:24] I don't know why I care but personally
[81:26] whenever we get close to a round number
[81:28] I don't know. You got to have goals,
[81:29] right? So there are no ads on here,
[81:32] there's no sponsors. I produce this
[81:33] stuff all by myself. I really appreciate
[81:35] you guys in the relationship we have. So
[81:38] if you wouldn't mind, if you haven't
[81:39] already, hit that subscribe button. Um
[81:41] and I just I appreciate you and I love
[81:43] you so much.