Inflation Fears 2021 Emergency Jeff Booth

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luna the fastest easiest way to buy bitcoin  if you're just getting into crypto it's the   perfect place to start guys and welcome back to  another episode of the lehigh pen show powered   by the vc firm icon plus capital and sponsored by  block five so if you don't know block fight offer   very competitive interest rates particularly on  bitcoin and stable coins i use them i love them   so if you are interested then i'm gonna leave a  link in the description and in the comment section   i think you can get around 250 when you sign up  so pretty good so today i have um a very exciting   guest um i'm in the middle of reading his book  so it's great just to speak to him um and also   with everything that's going on in the world  right now particularly with inflation which we   found out is not transitory it's gonna be great to  speak with him so joining me today is jeff booth   entrepreneur tech leader and author of the price  of tomorrow jeff great to have you how are you   great thanks for having me leila yeah it's so good  to speak with you i think that especially during   times like this where we're seeing um astronomical  levels of inflation we were told that it was   transitory um it's clearly not quite transitory  i know you have um some really interesting um   ideas which i really want to go into and i kind  of want to start with the premise of your book   which is essentially that technology um and the  price well technology will essentially um lead to   price deflation which will then cause mass  unemployment so i'd really like to understand   exactly what you mean by this where does  technology come into play yeah so the overriding   factor in the world right now and what central  banks have been up for up against for a long time   is technology is supposed to make our lives  give us more for less which is inflationary   so that technology is productivity exponential  productivity and if you look at your phone or   or this this call we're doing if you think about  anything we do today we're used essentially   technology to do it and that technology what ends  up happening with technology is is that things   move towards the marginal cost of production  which becomes free especially with ai so if you   a really good example is 10 years ago 20 years  ago think of all the industries around camera   equipment camera sales film distribution of it  and everything else and how many photos you took   yep compared to how many photos you take today and  and the cost of it entire industries are decimated   new industries are formed and the new industries  give you way more for less we take trillions of   photos how the photos are driving part of  our culture today and it's all essentially   free the the photo the the camera on the key on  the iphone is i think it's an under five dollar   bill of materials item today and it produces 3d  and everything else so so that even that camera   10 years ago would have been 700 so so when you  think about what happens it just that that that   base layer of technology is driving everything  down in price as we're supposed to be getting more   against that and that's why i said it's been  happening for a long time now against that we   have a system that can't allow deflation so our  system that we live in is a credit-based system   and that that has to grow forever so inflationary  inflationary you have essentially you have   we believe we need two percent inflation  to survive it's just it's not true   the the system that we designed a credit-based  system that doesn't actually have hard money at   the bottom of it it's just credit requires  inflation to survive so that raises a very   interesting interesting um quandary or it's  it's it's actually the driving force of every   other thing in the world today these two things  colliding into each other one man-made system   that must that must create inflation against  technology that's trying to drive the other way   and so when you do that what ends up happening is  you concentrate wealth and power in very few hands   from then player and you're picking the  pocket of a whole bunch of other people   and they're looking out of the world and the  things that aren't being driven by technology and   there is still technology in it that let's say  housing or food hasn't transitioned as fast as   others or education education is free today people  just don't know it's free today yeah but it's um   but all of those industries that are scarce go  up in price and we and a whole bunch of people   that had their pocket picks through inflation  can't afford to live anymore and they rise up   and they vote for different leaders who carry  on the same type of tactic because the exact   entire inflationary system would  collapse without wit without manipulation   so why did why does that two percent inflation  have to have to exist why is inflation necessary   because because but what ends up happening  with an inflationary monetary policy is   and let's say the reason that exists in the  first place is because then governments can   give you more service than they can  pay for and they can hide some of that   in inflation that nobody votes for so  it can expand government's powers to   essentially pick your pockets um and and and  because we will all vote for people who will say   we would if somebody said i'm going to tell you  the truth here's what it looks like and we need   to go into a deflationary spiral and every bank  will collapse and every institution collapse   would that person get elected no and so it  so that's that's the point we all believe   that we need inflation we don't it's  it's insane to think that inflation   it's insane just to think humanity requires um  a uh a theft in their money of course to live   in a productive society it's just not true it's  categorically categorically not true what is true   is the system requires it and because because  when debt keeps on getting bigger and bigger   inflation has to go higher to pay back the debt  because you can't pay it back with taxes you   can't pay it back if you increase taxes if you  if you charge every company 100 percent taxes   next um in the us you couldn't put a dent into one  year of what is needed to run the run the budget   so access can't solve it so you have to you so you  have to resort to playing tricks and essentially   funding in a different way which is destroying  currency and hurting a whole bunch of people as   a result of that it sounds quite um inherently  um evil and like it's sort of done by design   do you think that it is done by design or do you  think it's just by accident that we ended up here   yeah i i so it would be easy to think it's  done done by design and i think there's   there's a number of books out there that uh  that that would talk about by design in the   monetary layer um well that might be true in  some senses i don't think that where we are now   is done by design i think it's more ineptitude  and and understand and and not understanding   how a system feedback loop works that that  system feedback loop making it bigger and   bigger and bigger all the time requiring  more debt all the time requiring more   um and no way out but but ask ask any policy  ask yourself if you were elected queen of the   world today how would you fix it and how would  you fix it other than an alternative system   because the system itself can't fix it because if  you if you stopped if you stopped inflating if you   allowed the free market to work people would not  want the free market to work right now because the   free market would mean every single thing would  have a cascading collapse everything every bank   would fail around the world you would have no food  on the street you're on shelves you would it would   look it would look terrible because we are so far  past the point of rescue on the existing system   so so what you could say policymakers are trying  to do and they're scared to death and rightfully   so um is there they have to what ends up happening  is when you have corruption and money you have   corruption everywhere there's a result and and  so what they'd have to do is oh look over here   and create and create more misinformation to be  able to keep printing which hurts a whole class   of people but you have to ask what would they  do what it would so so they're trapped right   unfortunately they're trapped right now and as a  result of them being trapped we are all trapped   so there's so much there to unpick so i want  to start with the idea that if we move to an   alternative system you're essentially saying  that everything would collapse banks would   collapse would be supply chain issues no food  on the streets um but i'll get into bitcoin in   a bit because i know that you every tweet you  end with bitcoin you're obviously a bitcoiner   um so how then do we how then would we even  move to a kind of world of hyper bitcoinization   if there would be this serious collapse  and i know that bitcoiners don't really   care necessarily if there's going to  be a collapse with the banks right   we're kind of almost unbanked anyway they should  care okay explain and they should care because if   you don't understand that piece you misunderstand  human nature and know what human nature would do   under those conditions yes under those conditions  um we are very susceptible to dictatorships   controlling us and doing really terrible things to  other people so every bitcoiner should care that   the existing system doesn't collapse they should  be voting for a smoothie in fact bitcoin smooth   transition and that's that smooth transition um as  mad as they are at the existing system as mad as   they are there are people in this existing  system that are that are terrible people   yeah but there's also a whole bunch of good  people in the existing system and and it's easy to   it's easy to turn against all people in an  existing system when you see the truth and   what's that existing system is most of the  what's happening in the existing system is   just momentum that has to keep on feeding  back on itself and many people have no idea   so how what would a transition look like i look  at bitcoin i look at bitcoin specifically and   that's actually why i post quite a  bit i've looked everywhere for for   understanding this problem what what possible  way what possible bridge to the other side uh   is there and i've only seen bitcoin it's the  only possible bridge i've seen i may be wrong   but but i've done investigation every uh  everywhere and i don't see another one for a   very variety of reasons but when is it what the  thing is happening today is people are looking   at bitcoin and they're looking at bitcoin  through the lens of where bitcoin is today   okay and and imagine in the u.s or canada  or any g7 nation that everything collapsed   could you use your bitcoin everywhere and and  that's the problem today you can today it's hard   yes but but what ends up happening with all  technology is people project the current   forward instead of where it's going forward so  the network on bitcoin the network effect on   layer two on bitcoin is making the roads easier  and easier to use bitcoin to be able to become a   store of value and to purchase with it and so i  i use this example i've used this example often   in 1999 when when the when the dot com market  collapsed the dot-com market collapsed and amazon   was trading at under five dollars and they  were selling books and a couple other items   what if in that time and and then  the writing was it was on the wall   that amazon was going to be this great company i  was an investor in it then i saw what it was it   was going to be this great company writing was on  the wall then they're doing the same thing today   but but what if every retail store collapsed  in 1999 and amazon wasn't selling books   you would see what what i'm talking about  the layer in the monetary layer here   right so what ends up happening is a transition  happens in the net when one system builds   and it's getting stronger and  stronger and stronger and one system   flails and gets harder and harder and harder  to be able to use and as that system starts   to flail more and more people see the new system  and they walk across the bridge to the new system   that's what bitcoin is and as more and  more people are walking across the bridge   to to build the new system both in holding bitcoin  uh yes the early people walking across the bridge   on more uh more or more of the future have more  say in the future but all people walking across   the bridge make the bridge better and better for  everyone else and it's easier and easier to use   and so all the all the investment and layer  two all the all the technology all all that   is essentially you could look at yourself myself  at this call us talking to other people who will   see this call and and say i need to get off  zero i need to understand bitcoin and and you   could see those people as becoming nodes in the  new in the new infrastructure nodes in bitcoin   which make that system stronger and stronger and  stronger over time if that happens at the right   rate then if i you if you looked at el salvador  today you could buy your groceries with bitcoin   right you can so there's places in the world that  you can start to see this transition happening   it just hasn't it just hasn't it it needs  it needs more time to move to the other side   okay so it's all about a slow transition it's  not as if tomorrow we can essentially overthrow   everything um the the existing system um  so so let me just clarify that too okay   i can't say what will happen because  when you have a system that is this   uh fragile yes anything could happen um said which  snowflake causes the avalanche we got a lot of   snow falling on the avalanche um and uh on on and  and there could be a cascading collapse any time   there could be mat and that cascading collapse  would cause massive more printing to try to stop   it but there's a lot of there's a lot of fragility  in the existing system so i'm i'm telling you what   i hope happens the healthiest way right yeah  yeah okay so that would be the healthiest way   um that slow transition infrastructure slowly  being built so people can buy their groceries   but my question really is el salvador got a lot  of hostility from the imf even the bank of england   which is laughable because of course inflation is  isn't in unprecedented levels in england yet the   bank of england are focusing on el salvador rather  than themselves and the imf the u.s so much um   hostility even christine lagarde and the president  of um the european um uh central bank she   basically said that bitcoin isn't a currency so we  can see that the establishment really don't like   bitcoin they see the power that it has so how then  is this go how is this transition really going to   take place it's as if like let's say blockbuster  versus netflix you know what if blockbuster were   powerful enough and angry enough to actually stop  the development of netflix is that possible so   so number one your question makes me laugh  because yesterday i put a tweet out that   said people in glass houses shouldn't uh made  of manipulated money shouldn't throw stones   right your glass house of the world imf lives in  and everything else throwing stones at somebody   who wants freedom and a currency that can't be  manipulated seems kind of ironic um and and so but   but more important there is every monopoly faces  the same thing um if you do the only difference   this time and is by the way it's a big difference  because we've always had a monopoly of money   that we we haven't questioned that it always will  look like that um monopolies in the economy and   and that question look at other monopolies  in an economy and what ends up happening   what ends up happening is a monopoly has its  control through scale or something else and it it   controls the access to that monopoly and and few  people are privileged the monopoly is privileged   and most people are hurt by it right any monopoly  so what protects that is those few try to   protect the walls and the end of that  monopoly what ends up happening is then   technology lowers the barrier cost the access  cost so much so and produces so much benefit   that monopoly to to change their business they  can't change the business because the access comes   from delivering value in a completely different  way your blockbuster netflix example or the   one i wrote about in the book is a good example  because the lowering of the cost of essentially   fiber and and video meant nobody had to  drive to a store to pick up a video in fact   you could in an instant technology changed the  rules and invalidated blockbuster's business and   how did it do so it opened access for a whole  bunch of people who didn't have access before   and so every technology does the same same  thing when you when you hit that point in   technology when you have kind of a 10x  value over the existing infrastructure   the existing infrastructure can't compete so and  and what ends up happening is because way more of   us way more people are hurt by the monopoly than  are helped by the monopoly all of the people that   are hurt start using the new technology or  or all the other entrepreneurs that say wow   i could never create a business over here in  this structure yeah and on this new structure   and they and they go to build their dreams hopes  empower the future on the new technology so   that actually that happens everywhere from horses  to cars to to to the printing press to to the   compute the internet every single thing looks the  same thing and a way and the monopolies that used   to stand before were built on different rules  and then technology changes the rules that's all   that's happening with uh with that's all that's  happening right now um is bitcoin specifically   lowered the barrier cost access costs everything  else from the existing system and a whole bunch   of people that are hurt by the existing system  are moving to the to the new system and that   that movement creates that bridge across to  the other side it actually makes perfect sense   that el salvador would be on bitcoin before  the us because the monopoly and and just like   it made perfect sense that no no vendor that  sold to walmart was the first seller to amazon it was all the people who couldn't it was the  99 of products that couldn't get into walmart   went on to amazon so it's it's just what ends up  happening with any technology change yeah land of   uh the place of opportunity the blockchain right  now the land of opportunity um but you did an   interview with um andrew yang which i was actually  so happy to see um because um i want to talk about   universal basic income because he has this idea  that um with technology um developing um people   are essentially going to be put out of work and we  saw that happen um at the time of the century but   um essentially with technology speeding up right  now the whole idea that people can simply learn   to code isn't quite possible and so he believes  to sort of um i guess make that transition easier   we should have a universal basic income so i'd  love to know your thoughts on that and whether   and how you think we would transition bitcoin  aside just in general with technology moving   forward the metaverse and everything like that you  know i think i think engineers and developers are   one of the most sought after jobs right now um so  what's you know your lorry driver going to do um   when we're all sort of living in the metaverse  yeah um keep reading my book by the way um andrew came and i don't think publicly he  can say this and everything else but he came on   almost a 180 from his belief pattern before so he  oh okay so we agreed so he we both see technology   and what it's going to do and it's going to save  time and that saving of the time comes as a result   of jobs going away like we could be we here's  the most kind of big example i could say why   don't you pay for your oxygen the air you're  breathing right now i feel like we kind of do   area breathing right now why don't you pay for it  um and and and it would be ludicrous to create an   economy where you had to pay for your the area  breathing because the hair you're breathing is   it abundant is abundant right we don't even think  like why would we do that well there are so many   places that right that that essentially technology  is going to create the same thing just like just   like so um so it's it's moving everywhere and  what it means is things should be dropping in   price as jobs come out of the market things  should be dropping in price at the same rate   the reason why basic income is is kind of used  as a fix is because you're having to you're   pushing prices up against the natural forces  and then people say i need money to live and and   it like and think about this so i create more  inflation so most prices go up and because   house prices go up and it's the only way people  can escape it's one of the only ways people can   escape that inflation blackstone starts buying  houses and then rent and then rents go up mm-hmm   and open and and people can't pay if people can't  pay their bills so so then government says wait i   need to create more inflation so i can give  them more ubi so they can pay their bills   it's insane so cause it's a cycle it's a cycle  that reinforces itself and reinforces itself and   a lot of people will vote for that cycle because  they're so hurt by the system it's like a monopoly   board going around a monopoly board somebody has  all the properties the properties they they get to   keep the properties forever there's this injection  making those properties more and more valuable and   then a whole bunch of people that are that can't  get around the monopoly board anymore and can't   end the game normally in the monopoly game would  be thrown out or the game would end right people   would break um and but they can't get around the  board so so what the people in power say instead   of give them 200 when they pass go we're going  to give them 400 and push the prices even higher   right so and then they can't get around the board  again and so that's what's so when you look at ubi   through that lens that's what it is and what it  in and andrew after that call we've had lots of   sense and everything that's cool but but he  became a bitcoin advocate after that call   because um and and but he asked me he goes how  many people understand bitcoin like you do like   the the this is the this is a transfer in systems  that that can allow humanity to flourish on the   other side and we need to get to the other side  of that that system so so i have a lots of respect   especially lots of respect for somebody who um  will will look at the facts and change their mind   um and and so uh but but but he he and he now  understands bitcoin and why it's so important   he's actually speaking in the bitcoin conference  as well oh amazing that's so good to be able to   um i guess orange pill somebody um especially a  politician um because i think i think we need more   people um on our side but in times in terms of  inflation in general i think what really concerned   me was the idea that people are um claiming that  it was it was going to be transitory um i think   um the video actually came out of the uk which  was saying um that economists didn't expect it   um which is so strange because um i don't have  a any um finance degree or anything like that   i have a journalism degree and yet i expected it  right so how do i how do i know that information   was going to come and things like  that but economists didn't so either   the economists that are um essentially in charge  because they obviously um provide financial advice   for those who make who set policy um either  they're ignorant or there's something else   going on here so how did they not know yeah so  is this so do you remember that paul krugman   uh yes that says about that about the internet the  internet it made no difference the facts machine 15 years later defending that quote i didn't know  he defended it oh i didn't know that in a big way   he defended it and he said this which is way worse  than the original quote i'm an economist i don't   make predictions on on technology so so and why  is that worse we have an economy globally that   is more and more led by technology all of it  is technology yet an economists think they're   immune from people making mistakes on technology  an economist that doesn't understand technology   it can't be a very good economist by definition  and and so and and that's the that's the thing   that's so hard in these transitions most people  most people we predict our future for our existing   path forward instead of where technology is  leading us it's very hard to understand and so   there's a whole bunch of economists that are stuck  in that same loop thinking they're playing by the   rules before and all their models are working  before as before and they simply cannot work in   the techno and where we're moving with technology  it's actually this sim is really this simple   technology moving at this rate requires a currency  that allows for deflation requirement if if   and and that requirement is almost impossible for  an existing central bank to allow right so but but   and i'm going to put a caveat on that requirement  it does it doesn't require it if you concentrate   all control in central banks and and and the  world looks like the entire world looks like china very few people making decisions for everybody  else um but if the world looks like that it's   not a world i want my kids to grow up  in but and it and so but it but where   technology is moving how fast it's moving it  requires a currency that allows for deflation   otherwise with inflation against that  because they're opposite opposing forces   otherwise you concentrate all all wealth and  enhance ends of you it's really that simple   wow so it's the only thing that i've seen  that allow will allow that transition   okay so okay so just i'm really trying  to like understand it really it's just   the it's kind of just the push and pull and the  friction between technology which is which is   allowing for deflation in prices because of  the abundance that it's creating versus the   the essentially the monetary system that we  have which is causing inflation and then that   those two together creates this centralized power  and so so yeah exactly and and you centralize   faster and faster and faster because the because  because technology is moving one way in the uh   opposite way so so people that are thinking  you're going to have inflation forever   the minute the government stop uh printing  you're going to have a deflationary spiral   the minute and is and that's good or bad so that  would collapse the system right right right right   would it collapse into that collapse with no food  on the street and everything yes yes yes um people   us we would elect dictators to fix it for us  there would be so individual rights and freedoms   would go away a different way in if that collapse  like that without the collapse keep on printing   we elect dictators in a different way and  and so unfortunately there's only door one   keep printing um and when i say door one or door  dude or door two don't and keep printing on the   way there typically looks like revolution and war  there's high likelihood that as you keep going   even in the u.s that you have revolution um that  that trickles over and everything else as more   and more people think it's those other people  that's the problem when it's a system problem   but at a high level you have one or two doors keep  printing um all of the negative externalities from   key printing don't keep printing all the negative  externalities of that and and that's actually why   the system can't change itself it needs an escape  valve it needs this bridge to the other side   and so a lot of people that are understanding  bitcoin they're starting to walk across this   bridge and the bridge is gonna and on the other  side it's really exciting it's really exciting   for the people there's so much opportunity in the  ecosystem right now it's really exciting for the   but but this transition from one system to another  is going to be messy so both doors lead to hell   and dictatorship essentially unfortunately there  is no okay unfortunately there is no that's good   no that's a good thing wow i would say yeah it  is but it's actually also why why in bitcoin   many more people i i know i know people  do care care about this but it's so easy   to look at an unjust system and say those people  it's really all of those people and there are   people in there that know the system's unjust  and and and gain from it anyways and and and um   and will close their eyes to the gains that they  get so i understand how you could paint everybody   with a picture of a few people um and say but most  people in that system don't know what's happening   so um i have so many questions okay so how did  you i'm gonna start with this one first actually   how did you land on this realization um between  deflation and inflation um and how did you really   just realize before bitcoin that we desperately  need um an alternative system and that both doors   lead to dictatorship and health essentially um i  i've always been um this sounds arrogant no it's   fine i've always been able to see the future in  a way that other that very few my friends could   that that because because um because i know how  my own mind changes and stuff as well and i'm   not always exactly right but directionally it's  what creates it's actually why i've always been   an entrepreneur and i've created tons of value in  understanding how the technology the intersection   it's almost from asking this it's why does  the world look like this when technology could   create it to look like this and so if you just  think through that is what ends up happening is   um all of our reality from our systems we live  in and the things we use are actually ideas first   if you think about this this iphone it would  it was an idea that competed with an idea of   a blackberry that you needed keyboard and when  it first came out everybody thought it was a toy   everybody in using blackberry thought that what  a gimmick and everything yes and look at it now   but that idea was just such a radical idea and by  the way in and if you think about the evolution of   that at palm pilot which was almost the same idea  didn't hit the right step of the kind of the the   intersection of when technology changed the rules  to be able to create a better idea it was early   and and it failed yes because technology opens  up an ability to do something totally different   our minds change and we accept a new idea and  that new idea is really exciting because it   gives us so much value and so it explodes that's  what i do in business i do that everywhere in   business i've been quite successful in a whole  bunch of different companies in business boards   investments and everything else and and so from  that and and seeing all of the different things   in that i was working on and the leading edge  of what's coming in ai and 3d printing and   and and all of that i couldn't stop asking  why aren't prices going down everywhere why prices weren't going down everywhere  like it was it was kind of a 10-year question   and i would talk about this all the time all the  time and i did not want to write a book about it   but but i'm an entrepreneur i want to i want to  when i see something that doesn't work i want i   i have to figure out to the bottom of it why not  how could it work and and so that's what led me   to to look at this and then then i realized okay  why inflation is like this why it's needed for   the existing system and but but when i looked at  the last 20 years required 185 trillion dollars of   easing to be can we work to grow the economy by  46 trillion essentially to to when i said those   angles one system is moving this way and the  other system must have the opposite effect so   you have to increase the amount of printing  to offset that over and over and over again   i could see the train wreck coming and  and in the train wreck and i realized that   my family my kids wouldn't grow up in the  same type of world that i i did and i i and   and i needed to write the book to be able to  explain that because it was driving me crazy   it was driving me crazy that you had a whole bunch  of technology entrepreneurs on one side talking   about what they were going to do and how much  money they were going to make and everything else   not being able and and and not  being able to put together the   you can't make that much money if the free market  works and the prices come down like that money is   being a derivative of of of inflation driving  driving the monopolies bigger and bigger and   bigger so google bigger so so that's why i wrote  the book i just i i eventually i got mad um i love   that good no that that's great you know i think  um we need this kind of education um i think it   upsets me that there isn't any financial literacy  in school um i have my own theories as to why that   is which a lot of people probably share um so  i you know i i love having these conversations   um you know books like yours which really just  hopefully wake people up and you know we can   try and move to a better system um so how did you  then realize that bitcoin was the answer what year   was that and um talk to me about that transition  because a lot of people obviously think it's a   scam when they first hear about it they think it's  this weird internet money that doesn't exist so um   yeah yeah tell me about your journey behind it so  i i wish i uh so i was too busy in my businesses   to be able to take this bitcoin seriously in the  beginning um and and and bunch my developers kept   coming to me and saying you got to get on this  it's really important and everything else and   i still didn't uh didn't take it seriously  um i was in bitcoin before i wrote my book   but if you'll notice on the book there's one  paragraph on bitcoin um in the book it's not a   bitcoin book it's a um and and even after i wrote  the book i was still and and am still open to any   possibility that could change this system to to  so but what i realize what i've realized and can   i'm still open if there's a but i don't see  another possibility i think to to to move to   the other side without revolution war reset to and  and if you had that you would actually build an   inflationary system on top of the reset again  just like has happened throughout history   um i don't see a another um anything that actually  competes with what bitcoin is to get to the other   other side so so that that journey to get there  and and i remember my book was written two years   ago and it's everything has played out if you  just look at that book when it was written and   you think about what's happened since it's like  it's like a road map for what's happening and what   happens next as a result of uh as a result of this  so it's it's hardened my position on on bitcoin   i think it's that important yeah i agree um  since the last two years since cover started   and all this money printing my position on bitcoin  has totally been solidified um even more so you   said that there isn't another alternative but  you are open to seeing you know if there is   one you're open to it you're open-minded which i  think is great but there are over 10 000 different   cryptocurrencies of course they aren't all the  same we've got you know let's just say a nice top   five um so what is it about bitcoin which um  really seems to be the answer compared to all   the other different um cryptocurrencies what is  it about the technology that you really admire   that's hard to do in in in a show like this and  that but i'll i'll give that a a stab the way that   the system is designed to approve for work and  decentralization um people will not make a choice   to have a deflationary currency because there's  too much wealth and power to be able to design   as a different system so us we won't make  that choice and that's why the the the the   the decentralization essentially  that's driven into the   into the protocol the security proof of work  that that that security is a feature that   proof of work is a feature of the system  the energy use and require it for bitcoin   is the thing that keeps it decentralized  and it's a feature of the system that that stops humanity from actually changing the  rules so that's that's a big big part of it   now but let's just say okay bitcoin versus  ethereum so bitcoin tries to win store value   this innovation and everything else and and and  it does so and it does so over time and remember   if if bitcoin came out today and everybody knew  what it was today and it was in its infancy it would have been shot down today today like so  if it so if it came out and it was a small market   cap and everything else and it had this dream of  being able to do this regulators would shut it   down because now they know what it means right  think about what's happening with the imf when   you think about what happens with china when you  think about people are trying to shut it down and   they can't shut it down it's impossible um but but  in year two they might have been able to bitcoin   so you had this this evolution and this this  system that got hardened and hardened and hardened   before people woke up to realize that it's a  redistribution of power away from central power   to human humanity and and and so and and so now  it it's it's far enough along that that its heart   is very very difficult to stop so now enter other  alt coins and because bitcoin was going after that   it let's the use ethereum as example wow this is  a really interesting blockchain can do this and   everything else how do we make money but that  looks more like a company making making money   and we're gonna and so so a small group of people  do a pre-sale a pre-mine and say a world computer   and it's gonna be blockchain for everything  else i actually do understand why   ethereum would have a network effect  today um doing nfts and everything else   but the design of the system in fees makes it less  secure and you have to central and you have to   have to centralize and you keep changing  the design of the system yeah and you have   to keep and and and it's not just it is you keep  changing it by the people who control the system   and so and and then altcoins underneath that as  fees go up on ethereum it opens up attacks from   below on oh i can do the same thing for less  cost and you have tons of different alt coins   so i'm not necessarily against people making their  own choice on their free market investment they   can make advice and everything else the i just  categorically i don't believe they have any value   in the long term i think what ends up happening  is the design of bitcoin kind of on layer one   what ends up happening on  layer two and layer three   why do you need those other coins i think  everything starts to aggregate to the winner   because um because all of those all of those  use cases can be designed on something that's   way more efficient and reinforces the primary one  so so so it's not um i just think yeah i wouldn't   again i'm an investor in technology lots of  technology companies and i i i tend to think   what would i what do i believe and what would  i put my money in and and and set it and forget   it um i wouldn't do that on a whole bunch of  altcoins um in in bitcoin i can easily do that   i love that um i love hearing those kind of um  arguments but in terms of just the other side um   of um what we were talking about going through  those doors and reaching the other side with a   better system um how do you then see it played out  so do you do you actually see a world where things   are denominated um in satoshi's um so how yeah  tell me how you see it and also do you think that   would see only certain states certain countries  adopting this new technology or is that just part   of the transition how does the future look is part  of the transition and so so so what gives the us   dollar um strength is besides kind of using oil  and energy through a war machine to be able to   price and oil in u.s dollars what what gives the  u.s dollar strength around the world is a network   effect that it's used everywhere it's a common  currency everywhere as that happens with bitcoin   as more and more countries users and everything  else start to do it and layer two with lightning   or liquid and start to start to use that this  more and more people that's what i meant about the   network effect more and more people the on-ramps  the technology the different things the use cases   it's way easier to use bitcoin and be secure  in bitcoin today than it was five years ago   the on-ramps are way easier it's simple and the ux  and the design and there's and so the innovation   coming into this ecosystem is bringing more and  more people in that if i want to hire an engineer   in um in india um without going through government  without going through a bank by the way i i i it   took three weeks one time to get a six-figure wire  transfer about two months ago to india through   it's just a nightmare through the existing system  and all paperwork and everything else i don't need   to do that anymore i can i can hire anybody  anywhere and i can start trading with those   those those those people through a different  through an altered network um that network   is in its infancy but it's growing leaps  and bounds and more and more people are   moving onto that network which opens up more  and more so that's the transition that we're   talking about and states can't stop it  because because because people everywhere   where a state has tried to stop bitcoin it's  accelerated why yes because because because   they're essentially screaming at you with a  megaphone that says here's why you need it yeah i think it's so interesting  and we saw that happen with china   saw that happen in nigeria all it does is  either further decentralize the network or it   forces people to end up trading um peer-to-peer  which was the initial goal in the first place   um so yeah it's really interesting i want to  just move on slightly so i know we're obviously   short for time at this point but i'd love to talk  about entrepreneurship because obviously you've   had um tremendous success um especially with build  direct so i kind of want to understand um firstly   do you think that anybody can be an entrepreneur i  think anybody can i just don't think people are uh   geared uh towards it and i think and and  why is they perceive risk differently   so so they don't perceive risk of his status quo  they think status quo is safety and they perceive   so a lot of people would look at  entrepreneurs as these enormous risk takers   i categorically just disagree we're because here's  the way i look at an entrepreneur at being one   i'm in i i'm i'm actually i'm risk adverse  i just i see the risk in the existing system   and i don't want a job in the existing system  where i have no control over my destiny and even   if i go in over here and and and under so that's  actually why i would chase down to the sand will   this work or not what will it take and because  it's a bet on yourself it's bet on your team   it's a bet on what you have to do to change to  create the opportunity and so even if you fail   you come out of that learning with so much  learning that the next time it's easier   and so um so i i think great entrepreneurs  aren't risk takers they're asymmetric debt takers   that's such a good point um because i remember  years ago um i was living in a country um and i   loved my job and i was so happy that the job  brought me to that country but the company   was failing and so i had to leave the country  and i was so upset because now i didn't have   control over where i lived and it was from that  moment that i said to myself i can't ever rely   on an exterior party to basically determine how  my life is going to look so at that point i was   like no i've got to make my own money um i can't  do that so i yeah so i could totally get that so   a lot of people watching um are trying to build in  this industry in the crypto space so what advice i   know it's really cringy but it has it is actually  very helpful what advice would you give somebody   who is looking to start building um especially in  the world that we're living in right now um a lot   of people do feel that opportunity opportunities  are being taken away um just given travel   restrictions and inflation and things like that  so what kind of words of wisdom would you give   someone looking to build right now there's so much  i wish i was younger because there's something   right there literally is um because as any time  there's chaos in the world um there's system   transitions entrepreneurs um are required to be  able to move that forward hopes dreams everything   else and on their hopes and dreams do we ride  as a civilization that's what ends up happening   and and so so when you look at system problems and  those system problems create a whole bunch of pain   for other people understanding how you can fix  that pain is what an entrepreneur does and when   you when you do that in a way that delivers tons  of value the business is bound to be successful   now doing that figuring that out is which market  how does it how do i do this how do i focus   but i'll give you an example of what's happening  today to so then existing industry and you could   use twitter's new ceo you could you could use  google you could use facebook you could use   our communication channels are  getting more and more controlled   and they're getting more and more control and what  ends up happening to build these monopolies what   ends up happening is you you have to attract  people who will deliver let's use youtube as   an example people who deliver different content  to your system which attracts users and so people   think it's attracting users that's the trick  it's not it's a tracking contract providers   and then as more and more content providers  come in and they're and if you think about   how many hours of youtube are uploaded a day and  most of that is not seen what ends up happening   is there's so much competition to try to be that  found and more users are attracted to the platform   mm-hmm those platforms are monetized today are  youtube gets all the money through advertising and   these people are essentially selling their souls  through advertising and they get one percent two   percent half a percent of the advertising break  to be able to to to meet a buyer on layer two   on lightning and what's happening on on lightning  that whole thing will be reinvented and it will be   reinvented everywhere lots of other opportunities  but that whole industry would be reinvented in in   that if content is the value and most of the  content producers are getting very very little   value then there's an opportunity on a system  that lowers the barrier cost because because   because google system requires that barrier  cost because it was built on a different model   on lightning it lowers the barrier costs and  there's somebody that could come out and say   listen i need three percent to run the business or  five percent business to run the business but 95   of the value is yours where do you  think the content producers would go   lightning and as you did that what do you think  if the content producers are all going there   where do you think the people would go and and  and and that's and and so you're able to recreate   a whole bunch of value by giving more people  value the change to change change business that's   just one example but that example would be in a  whole bunch of different places on the new rails   uh commerce that are coming so it's true when  people say bitcoin fixes this um you know we could   start actually seeing those kind of decentralized  systems on the bitcoin network um you know youtube   alternatives and stuff like that yeah that's what  i expect to happen yeah that'll take a bunch of   time but once that network effect starts to to  to spin it'll spin faster and faster and faster   amazing so what are you working on right now  is there another book in the works i know you   said you didn't really want to write one and of  course right now i doubt it i'll probably put   up free content rather than the uh yeah and  i do a bunch of these podcasts to be able to   get out i'll never say never because maybe i'll  get mad again on something else but um but the um   this is moving i think it's inevitable  and and people like you a whole bunch of   influencers in in this community i would  rather just take the message forward um   and and and and build it i can  just slide off in the background   well i really appreciate you coming on jeff  it's been so interesting i'm really excited   to continue reading your book where can people  um follow you and find your book probably just   best on on twitter uh at jeff booth the book's  called uh the price of tomorrow why deflation   is key to an abundant future and amazon's  probably best spot for that jeff i want to   thank you so much it's been such a pleasure and i  want to thank everyone for tuning in thanks a lot   all right we'll speak soon and guys don't forget  to tune in next week for another brilliant guess

2021-12-06

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