Robert Breedlove: Philosophy of Bitcoin from First Principles | Lex Fridman Podcast #176
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Robert Breedlove is a decentralized finance entrepreneur, philosopher, and podcaster. Please support this podcast by checking out our sponsors:
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OUTLINE:
0:00 - Introduction
2:37 - Sovereignty
9:42 - Territorial imperative
14:19 - Property
20:24 - Anarchism
23:03 - Inflation is theft
27:26 - Volatility is truth
32:05 - Taleb and Bitcoin
36:13 - Life is information propogating through flesh
47:12 - Intelligence
51:25 - Space and time
58:07 - Pragmatic truth
1:09:05 - Creative destruction
1:12:54 - Capitalism vs Communism
1:25:38 - Jordan Peterson on religion
1:29:54 - Inflation
1:33:45 - What is money?
1:47:21 - What is Bitcoin?
1:58:27 - Bitcoin vs other cryptocurrencies
2:06:38 - Can governments ban Bitcoin?
2:19:20 - Bitcoin toxicity is tough love
2:32:39 - Crypto scammers
2:41:50 - Eric Weinstein and Bitcoin
2:48:12 - Satoshi Nakamoto
2:52:42 - Money is energy
2:59:56 - Proof of stake vs proof of work
3:02:36 - Morality
3:17:21 - Collapse of the Soviet Union
3:20:51 - Jordan Peterson and Bitcoin
3:33:20 - Book recommendations
3:52:40 - Advice for young people
3:56:11 - Love

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 The following is a conversation with Robert Breedlove, someone who caught my attention and was recommended highly as a rigorous scholar and thinker in the space of decentralized finance and Bitcoin. His podcast titled, What Is Money, is a good representation of the way his mind works. He's willing to talk through ideas for many hours, willing to listen, willing to think, which makes him a great companion in conversation to explore the history, philosophy and future of money. Quick mention of our sponsors, Fundrise, Element, MonkPak and BetterHelp. Check them out in the description to support this podcast. As a side note, let me say that I'll have a number of conversations in the coming months on Bitcoin and other cryptocurrencies. None of these conversations are financial advice. That's not a legal warning. That's a genuine description of my goals and approach with these chats. At least for a while, I personally won't actively invest in Bitcoin or any other cryptocurrencies, except to learn about the technology itself. I don't think this should be a journalistic standard like the New York Times trying to establish, which I very much disagree with. In my humble opinion, I think journalists should be free to invest in Bitcoin if they want to. Luckily, I'm not a journalist. I just know my own psychology and I feel that my thinking will be muddled by excitement if I invest before I understand. I feel the same way about Tesla, for example. I still don't own any Tesla stock and I am still indeed fascinated by Tesla autopilot as an artificial intelligence system. I work hard to be cognizant of the biases that arise in my mind and always try to choose the path that maximizes or maintains a freedom of thought as much as possible. Also, let me say that I try to be very careful in selecting guests based not only on the contents of their ideas, but the richness, complexity, music, style of their mind and character. Yes, I will talk with people with whom you and I may disagree, people who some may call bad or even evil human beings. I want to understand them because I believe that, as Sol Janitzen said, the battle line between good and evil runs through the heart of every man. I think if you always run from evil, you become blind to the truth of human nature. This is the Lex Friedman podcast and here is my conversation with Robert Breedlove. Rousseau opens his 1762 book, The Social Contract, with the following statement. "'Man is born free and everywhere he is in chains.'" So you talk about freedom and sovereignty quite a bit. What do these ideas mean to you, the idea of sovereignty? Freedom and sovereignty, I think they're very closely related. When we start just focusing on sovereignty, which is a word I don't think we talk about enough, and the general definition of that I would give is the authority to act as you see fit. And it's a word that's etymologically associated with words like monarchy, money, reign. So historically, it's referred to whatever the locus of supreme power is in the sphere of human action. So whether if you go back into ancient Egypt, the pharaoh had absolute sovereignty and everyone else was pretty much operating according to his interest. You fast forward to today, modern Western democracy, we have more decentralized sovereignty in that we all get to go vote and elect officials that make decisions on our behalf. So the theme of sovereignty across history is that it's been gradually decentralizing across our different models of socioeconomics. And it's largely, you can say it's rooted heavily in the money, I would argue, which is something we'll get a lot into here, where if you have money, you have the authority to act as you see fit in the world. And even in our current political sphere, if you have enough money, you can actually reshape the rules. You can reshape laws, you can lobby Congress. If you're in a certain situation like many billionaires, you can negotiate your own tax treaty, such that you can get favorable tax treatment with certain jurisdictions in the world. So this concept of sovereignty, which today we call, it's common to call states or nation states or government sovereign, meaning that they have power over people. But as I argue in a lot of my writing, I actually think that sovereignty and here's within the individual and that we each have our own interiorized space of choice, which is something like Viktor Frankl called the final human freedom. And that we, no matter what our circumstances are, no matter what exogenous situation we face, we always have this endogenous power to choose how we respond to it. That's one of my favorite books is Man's Search for Meaning. Maybe we can break that apart a little bit. So you've kind of spoken about sovereignty as closely linked to power, but is there something about your own mind being able to achieve sovereignty no matter what the monetary system is, no matter what, who has the control over centralized power, the money or whatever the mechanisms of sovereignty and the societal level, you as an individual, isn't ultimately all boiled down to what you can do with your mind, how you see the world? Yes. I agree. And as we get a little bit deeper into this, I think we'll come to see money as an extension of your mind. So there's a feedback between money and mind. For instance, you think in dollars today, almost guarantee it, most of us do here in the US. And it's a tool, right? It's a tool we're using to decomplexify the world around us to deal with it, to understand the sacrifices and successes across an entire history of economic transactions. We can boil that all down to the price. So it's data compression. And if you can change, if there's a central body or central governance mechanism that can manipulate that money, it can have an impact on your mind. For instance, today, so I agree with you on the firsthand, say that I do believe in free will, I do believe in individual autonomy, but I also think that there are certain devices and powers in the world around us that can actually influence how we think. And it's fascinating to think about the fact that money might be actually deeply integrated into the way we think and into our mind. Like this is, you think about what are the core aspects of the human mind? What influences cognition, the way you reason about the world? You have the Chomsky like languages at the core of everything. But you're kind of placing money as pretty close to the core of what it means to be an intelligent reasoning human. I think money is a direct derivation of action and speech actually. It's another expression of the logos. If we even think of what it means to think is that we are generating two different courses of action, potential courses of action, and we're populating them with avatars, right? Maybe ourself or others, and then we're comparing how we may act in each situation and what we think the result would be. So actually it's comparison, basically it's comparison and contrasting of possible courses of action. And that's the same thing with words themselves. Like, most words, the vast majority of words only have meaning in relationship to other words, right? It's all contextual definitions of a word or more words. Now people have argued with me about this because there is a first word, right? Where you pick up rock and say rock. But most other words and much in higher abstraction tend to be relative. And what's funny about action and speech, and this gets, I got into a bit of this in our paper here, is that it's linked to evolutionary biology. And that once human beings adopted upright stance, we freed our hands, we no longer needed our hands for locomotion. So we started to evolve more dexterity, and notably we have opposable thumb. So this gives us an ability to manipulate and particularize the environment in a way that most other animals cannot. And what's interesting about this is that as we gain this ability to manipulate natural resources and count, point, pointing was a big deal and that we could indicate prey or items that are far off distance and we could organize ourselves. We, at the same time, we co-evolved this fine musculature in the face and tongue. So it's as if speech developed, co-evolved really with our dexterity. And as a natural extension of that came us making tools. Right, we started to create things to better satisfy our wants over time. And the most tradable tool in any society or the most tradable thing is money. So I really, I argue that action and speech are quintessential modes of self-sovereign expression. And the money is just sort of a tech layer we've put right on top of that. And that it's a natural derivation of action and speech. Okay, that's fascinating to think about sovereignty from the evolutionary perspective. And then ultimately money is the technology layer that enables sovereignty. So, you know, it's really fascinating to think about our modern human society as deeply rooted in these like evolutionary roots from the very origins of life on earth. So what, you know, some of the ideas you just mentioned, what do you see are some interesting characteristics of just life on earth that propagated to us humans? Like what ideas propagated to have roots in evolution? Yeah, I think one of the deepest impulsions in life is the territorial imperative. So all life is seeking to expand its dominion over space and time. And we think about, you know, again, physically with space, it's advantageous to an animal or an organism to have more territory under its control to raise offspring. So it's all about reproductive fitness at the end of the day. And then we'd also think of reproduction itself as the genetic impulse to have more, to replicate oneself across time. So it's territoriality across time in a way. And this is very common in most animals. Not all animals are territorial, but many are. And you see very interesting behaviors resulting from territoriality. This is like animal combat, you know, the reason birds sing is territoriality, a number of other things. And it's my hypothesis, and others have shared this hypothesis as well, that mankind is clearly, I think, would argue a territorial species, and that he expresses this territoriality in property rights. So property, when that word, we hear that word, we typically think of an asset. We think of, oh, this house or this stock or whatever. But property is actually the socially acknowledged relationship between a human and an asset, such that you have exclusive rights and responsibilities to a particular asset. It is not the asset itself. So property, it's information, it's a relationship. By the way, my mind was just blown. Property is information, it's not the actual asset. That's really important. Very important. That's really interesting. Yeah, and then it comes down to, how do we organize ourselves such that property, that the contributions people are making are commensurate with the consideration they're receiving? So if you're adding value to a piece of property, you're developing a piece of land for use, in theory, to be fair, you should have the rights to that fruit, right? If you go out and plant a garden or whatever it may be. And this is rooted in natural law, where we have rights to life, liberty and property. Those are kind of just the base, the fundamental layer of morality and capitalism, frankly. And you could think of, to get really primordial with it, the first capitalist in the world, just to kind of get some definitions out here, I'll say capitalism versus communism or socialism, as the spectrum I'll speak on. The first capitalist in the world would be the guy, the caveman, that maybe dug a little hole for himself to shield himself from the elements. Maybe there was a rainstorm or snowstorm and he dug a little enclave and he protected himself. I thought you were gonna go, because you said primordial, I thought you were gonna go back to earlier biological systems. I guess primordial for human, perhaps. For humans, yeah. Okay. And then the first communist or socialist would be someone that decided the fruits of his labor belonged to him. So he would have violently encroached on that individual and taken his plot for himself, for his own use. And that's the spectrum across which capitalism in the pure sense and communism in the pure sense operate, in that capitalism, each individual has the exclusive rights to the fruits of their labor. So anything they spend their time, effort, energy, creating in the world, they own the rights to that and they can trade those rights with others, other self-owned people that have done similar things. Communism or socialism would imply that other people, typically the state, have the rights, at least some rights to the value you've created. So there's this interesting moment when that first caveman, that first capitalist, drew a line, a circle in this cave and said, this is mine. You could say it was free to be claimed at the time he claimed it. Yeah. But it's an interesting moment when asset becomes an asset. When space-time, as you were referring to, it becomes something that's now, can be possessed by a human being. Is there something special about this moment? Because it feels like, first of all, in terms of space and time, it feels like there's a lot of available space-time yet to be claimed. So if we just look at the universe, right? We're talking about, there's a funny thing with Elon Musk and Mars. I think they sneaked in there for SpaceX that nobody on Earth has any authority on Mars or any. This is a very interesting question. It seems almost humorous at this time, but perhaps not. Perhaps there'll be sections of space, not just on planets, that are gonna be even fought over. So is there something special about this moment? Because in discussing sort of violence and respect for property, it feels like this is a special moment. Because ultimately conflict arises when you make claims on a particular territory. It's not always in conflict where people say, when you look at Hitler or something, for example, his claim would be in many of the lands that he attacked and invaded, that this has always belonged to Germany. So is there something you could say as to what it means to own an asset or a property? Yeah, so in the ancient days of hunters and gatherers, we could say that property was mostly a loydeal title, which meant it's just whatever you can defend. All right, so if you've got knives and daggers and satchels and maybe some pelts you've hunted, whatever you can hold and defend is yours. And there's not like there's a government to appeal to. You're just sort of a free agent operating in the wild, defending the assets you can protect on you more or less. And what really changed the nature of property is when we get into the agricultural age. So there's a big flip where we went from just foraging and hunting all the time, constantly moving, trying to stay alive to deciding we're gonna settle here. We figured out how to cultivate crops. We can increase the population because we can harvest more energy from the sun and we can establish a longer term civilization. What happens in that transition is that we begin creating economic surplus. So for the first time in history, we have grain, stock houses of grain to defend or maybe meat or cattle or whatever it is we're creating, we now have savings. And it's at that time when government emerges as well because once you have savings or you have an economic surplus, you have something that other people want to steal. This one thing we'll touch on a lot today is people always want something for nothing. People are always seeking the path to get something for nothing. And I think that drives a lot of our decision-making and actually encourages us to be innovative in a lot of ways. We're trying to, you could say it's our laziness that's helping us be inventive in a way. We're trying to accomplish greater results with less efforts over time, but we can cross that line in seeking something for nothing where we start to violate the life, liberty and property of others. And that's where we shift from kind of capitalistic society to something more communistic. And so that's what government is. It's a protection producing enterprise for the economic surplus generated by a trading society. So when people begin to trade, they create what's called the division of labor, which is a very common economics term, basically means you're better at making hats, I'm better at making boots. If you and I, you specialize in hats, I specialize in boots and we trade, we've created a positive sum game where you and I both benefit. So we become collectively more than the sum of our parts through trade. And that's why human beings do trade because we become more energy efficient as a result. We create more outputs per unit of input. And you can think of government in that respect, if we're looking at it, maybe in a tech sense, that the economy is the trade network that generates wealth, generates innovation, generates all this whole lap of luxury we live in today that we've inherited from our forebears is from the market. It's not from a government. The government is the network security, if you will. So we're paying expenses to a vendor to protect peace, to preserve life, liberty and property in that network so that we can have, when there's inevitably disputes over private property, we can have nonviolent dispute resolution in the rule of law and we can have a reasonable expectation of being able to conduct commerce without violence. The problem has been that the protector tends to, they're in a monopolistic position, we would say, they tend to start abusing that position to obtain property for themselves. Again, trying to get that something for nothing. When you control, you are the security guard for the economy. The first thing they tend to monopolize is money. Because if you can control the money, you're effectively controlling people, their energy, their perceptions. And that becomes a, particularly through inflation, becomes an avenue to get something for nothing. And that you can just print more money that everyone else is forced to sacrifice their time and energy to obtain. What are your thoughts about anarchism? So I talked quite a bit, he'll be here in a few days, actually, Michael Malice, about ideas of anarchy. And his idea, or the idea of anarchists, is that any amount of government will eventually become the very kind of thing that you're referring to. So there's almost no way to have a government that doesn't then try to monopolize power, money, and all those kinds of things. Do you think it's possible to have a government sort of on that spectrum of like, anarchy, maybe libertarianism, I'm not sure how exactly the spectrum goes, but where you have a small government that protects the liberty and property rights and those kinds of things, and doesn't expand to then also control the monetary system and all those other things. Is it possible? Agreed completely. It was not possible until Satoshi Nakamoto. So for the first time in history, we have a money that cannot be monopolized, cannot be corrupted, cannot be changed, cannot be weaponized, frankly. Our current monetary system is weaponized by those who can print money against those who cannot. And I think when you have, at the heart of every modern economy, which even we could say the US, we pride ourselves as free market capitalist. We out competed communism in the 20th century. We think that this is the superior model. Most business people will tell you that the free market is the best allocator of resources, all of these things. But what we have at the heart of every modern economy, including the US, is an anti-capitalistic institution, which is the central bank. The temptation to monopolize money throughout all of history has been too strong for anyone to resist. So any even benevolent, quote unquote, dictators that have taken over, many dictators have inherited say an inflationary regime where society is coming apart because someone was clipping the coin, there's someone who's printing too much money, and they'll commit to going back to a hard money standard. So they'll keep society on a gold standard, for instance, such that they cannot violate the money to benefit themselves. But inevitably over time, because it is a political institution, there's an incentive there, right, for again, to get something for nothing, to spend more than you're making through tax revenues. And with that incentive, people typically ultimately end up pursuing that inflationary path. So we can get deeper into that about, inflation is a term that we've been conditioned to think today is just something normal, the prices just go up, and then it's pertinent to a healthy economy, but it's actually, if you look at it from real first principles, it is just theft integrated into the money. It's a technology backdoor, is another way to think about it. You wouldn't buy a cell phone knowing that someone could siphon your data off of your private calls and sell it into the market. Now I know we do that with a lot of social media stuff today and that's something else we can get into, but you wouldn't do it willingly, right? You would prefer that your cell phone and your data was monetized by you, or if you're gonna sell it, you would be able to selectively sell it. Inflation is that it's similar, it's a tech backdoor. So it's a money that only a few people can siphon value off of surreptitiously, typically slowly, but eventually, as we've seen throughout history, that slowly builds up into a rapidly and then causes the monetary system to collapse. Do you think there's a benefit to inflation? Possibly so. So when you have perfect information, perhaps you don't need inflation, perhaps it is purely theft, but I think of inflation as like the snooze button on the alarm. So if you have a hard standard, you better wake up when the alarm rings. But all of us kind of like probably shouldn't, but use the snooze button. It's like, okay, well, five more minutes, or 10 more minutes. And then you're saying there's naturally a slippery slope where it becomes a drug that you fall in love with in your abuse. But nevertheless, the usefulness of the snooze button is that you don't know how you'll be actually feeling when the alarm rings. You might be able to ready to pop up, or you might be like, you really need those few more minutes to psychologically get yourself out of bed. This metaphor is just not working at all. But do you think there's a use to inflation sometimes from like an economics perspective? I think the drug metaphor is a little more apt in that inflation does provide an immediately stimulative effect when used early on. But what it's doing is it's, again, we talk about the balance between incentives and disincentives, right? That being necessary for a system to function properly. With inflation, you're essentially giving the people that can print money a way to dampen the disincentives they face. So it destroys feedback loops, I guess you might say. And another way to look at this is when you, so using inflation, using quantitative easing, you can decrease short-term volatility in the marketplace. So the market is basically this idea, this form of free exchange that's trying to zero in on the best ideas. And the ideas are those that are most fit to reality, to satisfying the most wants. It's gonna overshoot, it's gonna undershoot, you have these little business cycles. But when it's undershooting and you're experiencing a business recession, in a capitalist environment, the market needs to clear that malinvestment, that misallocation of capital. That means someone made a bet on a certain idea that it would satisfy wants in a particular way, and that bet did not pan out. If you then paper over the losses that business is creating, you're now delaying and exacerbating the volatility that that idea created. So this is kind of a Taliban concept where you can dampen short-run volatility, but volatility is truth. Volatility is us matching our ideas to reality. We're constantly, again, overshooting and undershooting. So you delay volatility, you're just amplifying it and exacerbating it in the long run. And that's what central bank is doing. The central bank mandate is low unemployment and low and expected inflation, basically. And so they're trying to achieve economic growth in a stable way, quote unquote stable way. This is their ostensible purpose. And that's just not possible. Growth is an inherently instable process. Can you elaborate a little bit about the nature of volatility? Why is it communicating truth? That's something that a lot of people are afraid of is the volatility. Almost like it's a sign of chaos. And so they want to escape chaos. But you're saying that that's actually, whether it's chaos or not, I don't know, but it's getting us closer to the fundamental reality that we should not be trying to escape. Yeah, so if we consider that the universe is pervaded by entropy, this is the second law of thermodynamics is that every closed system tends towards greater disorder over time. And that life itself, again, I would argue expressed through the logos, we, life is the anti-entropic principle. It's the only thing that's converting entropy into order, chaos into order. And that's what entrepreneurs are doing, right? We're living at the edges of the known and we're trying to, we're testing ourselves against the entropy of nature, trying to figure out new and better ways of saying, doing, or making things. And then if we do crack a code or figure something out, we then have a big incentive, the incentive is to get rich, right? Because then you have a new idea that you could then sell back into the marketplace. So it's this sequence of courageously confronting the entropy of nature and converting it into good and useful order, which by the way is like the ancient idea of God and Genesis, which I think is interesting, that actually enables us to construct civilization in these layers of anti-entropy or order, you might say. So today we live in a bubble of anti-entropy or order, like the coastlines are guarded by the nation and the city has a certain police force that keeps it in order. Even the way we talk, clearly the words matter, but also the nonverbal cues, all these things are like order that has been established over many, many, many thousands of years of human evolution. And I think that when I say volatility is truth, what I'm saying is that the experience of uncertainty is something that's ineradicable from life, right? Uncertainty, it's kind of a paradox because we're fighting against it, right? We're trying to innovate our way away from uncertainty to create more capital, which capital is very simply a way of mitigating uncertainty. So this is why you might have like a stash of food in case the power goes out or a generator, like it helps you overcome uncertainty over time. But uncertainty is also where all the sweetness of life is. So there's gotta be this balance with one foot in, one foot out. So human society is this kind of bubble of order that we've constructed and slowly expanding, but at the edges, you're always going to have that chaos, that volatility, and that the entrepreneurs are kind of like jumping into that chaos and some of them die and some of them succeed. And so like, if you wanna grow this bubble of order, you have to be embracing the volatility at the edges. Yes. And reverence for entrepreneurship, because these are the people putting their neck out, so to speak, risking themselves, and they're gonna contribute to society, by the way, whether they go up in flames or not. If they go up in flames, society has witnessed their experience as something not to do or something that doesn't work in a particular time and place, so that you could say they're, them going up in flames is a way of enlightening the rest of us. Or if they figure something out, Steve Jobs creates the iPhone, it changes the world forever. Enlightening the rest of us, okay. And Taleb would say- The fire of their failure, okay. Yeah, exactly. Taleb would say, individual fragility is inseparable from ensemble anti-fragility. So this means that, again, every time that entrepreneur goes up in flames, or say a restaurant goes out of business, when a restaurant goes out of business, that particular cuisine strategy they were implementing in that particular time and place, that's a signal to all the other restaurants in the area that that doesn't work. So restaurant food improves from bankruptcy to bankruptcy. So it's this death of the individual components that contributes to the growth of the ensemble. As a small aside, maybe you can guide me through it. I don't know if you're paying attention, but there was some chaos around Taleb and the Bitcoin community. I wasn't quite paying attention, but from my outsider's perspective, I thought, it seemed Taleb was a supporter of Bitcoin. And then a lot of people were very upset about something. I'm sorry if I don't know the details, but can you pull out some profound philosophical ideas from the disagreement of the chaos? I admittedly don't know too much about it either. I'm a big fan of his writing. He's always been a little different in person. Like I actually, he signed one of my books, I met him in person. He's got a very abrasive personality. He's kind of known for it. I don't think I'm passing any judgment here. He sort of embraces it. But he had written the forward to a really important book in Bitcoin called the Bitcoin Standard for Safedean Amoose. And then I think they had a little Twitter beef because Safedean is very much against COVID mask and state intervention, whereas Taleb's on the other side of the fence. And then after that beef, Taleb came out against Bitcoiners saying, oh, Bitcoiners are crazy and wrong. I think the great mask debate of the 2020 will probably be the thing that ultimately leads to World War III. I've been very surprised how tense, how much division this one little arguably silly thing has led to. I think a lot of people sort of project their, it's almost like not wearing a mask is a statement of sovereignty, of freedom, of saying fuck you to the man, the government, the centralized power, or the dishonesty, or in the scientific community, all those kinds of things. And then wearing a mask is a sort of kind of signaling of various kind of social aspects. I don't know, I'm not paying attention to it. I actually tuned out, I was part of a group of scientists that were looking into like, do masks work? This very interesting question. To me, it was an interesting question. I sort of roll in to ask that very interesting question because I think it is an interesting scientific question. But then I quickly realized that just as I was doing this like scientific exploration of this very interesting question about virion particles, like what kind of things, like from a scientific perspective, how do we prevent the spread of a pandemic? Forget COVID, any pandemic, super deadly or not deadly. Like there's tools, there's testing, there's masks, there's all these tools, how well do they work? And then I realized, in April or so, it became a tool of politics, a tool of philosophy. And that's when I sort of pulled out. So it's fascinating. I think it's a canvas on which people project their emotions and I guess, Telem got caught up in that kind of, so there's nothing fundamental, I suppose to their disagreement. Not that I'm aware of, but he is, he's written some about in his books, the problem with centralization. I mean, a lot of his writing addresses that. And he actually points to, I think Switzerland is the best government in the world because it's decentralized. So there's that. I don't think he has any, I'm not to speak for him, but I don't think he's voiced any specific critiques on Bitcoin per se. Could be wrong about that. It's just maybe his flavorful language and the way he likes to communicate. And the other theory is that maybe he's playing 4D chess and having a Twitter boating accident. So I don't believe in Bitcoin. I've sold all my Bitcoin. Oh, I see. Sorry, the boating accident in Bitcoin is this, I guess it's proverbial by this point where it's the way you lose your Bitcoin. So if someone comes after you and says, hey, whether it's a government or an individual is coming after you saying, give me all your Bitcoin or pay these taxes in Bitcoin. You go, oh, I had a boating accident and lost them all. Lost them all. So yeah. But back to the fundamental nature of space time. Let me ask you, because we're kind of left it. I'd like to go back to this idea that you said that everything we think, say or do occurs within the bounds of space time. So first of all, maybe you can comment on what do you mean in this context about space time, but also about the nature of truth. Like how much of all of this is knowable? How much of this is accessible to us humans? How much uncertainty like we're talking about is there in the world? Are you, do you fall in a place where we can reason deeply about this world and it's knowable or is it mostly chaos and we're just holding on for dear life? Yeah, I think I said that all action occurs within the bounds of space time. The other thing, everything we say, do or make, the other thing is that everything we say, do or make starts out as an idea. So there's this concept of universal Darwinism, which basically applies Darwinian principles, but outside of the biological sphere. So we could say that this kind of gets into Richard Dawkins' mimetics, that even ideas are competing, reproducing, recombining. That idea is so powerful, by the way. I don't think it's been understood fully. I think in the digital, in the 21st century in the digital world, from my perspective in the artificial intelligence, there's yet to be some profound things to be discovered about this whole construct. Agreed completely. It's been called an acid actually, and then it strips away all of the non-informational components of something, just strips it down to its bare bones. I have a quote in here somewhere about that, but. So which is called an asset, the ideas? The universal Darwinism. Darwinism applied broadly outside of the system. Applied broadly and I will condition all of this with saying that most of my thinking is shaped by a book I wrote recently called The Case Against Reality, which introduced me to this concept, but it tied into Darwinism that I've used more broadly in the past, looking at things like money and economics. So the book, The Case Against Reality by Donald Hoffman, he has a quote in the book that describes universal Darwinism. It says, quote, universal Darwinism can, without risk of refuting itself, address our key question. Does natural selection favor true perceptions? If the answer happens to be no, then it hasn't shot itself in the foot. The uncanny power of universal Darwinism has been likened by the philosopher, Dan Dennett, to a universal acid. And Dan Dennett says, quote, there is no denying at this point that Darwin's idea is a universal solvent, capable of cutting right to the heart of everything in sight. The question is, what does it leave behind? I have tried to show that once it passes through everything, we are left with stronger, sounder versions of our most important ideas. Some of the traditional details perish, and some of these are losses to be regretted, but good riddance to the rest of them. What remains is more than enough to build on, unquote. So the way I would interpret that is that life itself, I've come to view life as information propagating through flesh, and that we are, I guess DNA is a quadratic code, I think it's four letters, maybe versus a binary zeros and ones. And we are ideas, we are strategies competing with each other. And nature is that which selects, it's what selects the winning ideas, the ones that are most fit to environmental conditions, frankly. You know, talking about sovereignty and individualism, there might need to be some rethinking here about what is actually the basic individual entity that is to be sovereign. Like maybe our biological meat vehicles were like way overly attached to them. Like maybe, especially with genetics and all those kinds of things, or artificial intelligence, or living more and more in virtual worlds will become detached from that kind of idea. So for example, if I can clone you, you know, make one million robbers, but you all have the same idea, what is your real value? As the, like I could just shoot you and there'll still be 999 of you, but the idea is the important thing. The things you believe, so. I would argue that, I don't know, even if you clone someone perfectly, I don't think you can reproduce the individual themselves, because we're all a product of nature and nurture, right? So my particular concourse of experiences, the path dependence that I represent cannot be replicated, as nor can anyone's for that matter. Well, that's a hypothesis. So that's of course a human meat bag would say. So, like desperate trying to preserve himself. You know, I think it reduces to some fundamental questions about what is consciousness and whether that can be cloned, all those kinds, you know, it gets to the core of what it is to be human. What are the things that make you particularly you? Yeah, I think it would assume kind of a materialist viewpoint on reality, and that if you could reproduce every atom of an individual that you would have their experience encapsulated in that. And, you know, Hoffman's, which is the book is very radical. He argues that space and time is not an objective reality. It's a biological interface. So we are scanning our environment for fitness payoffs. And this space and time is the rendering specific to human beings that allows us to navigate reality effectively. So the further argument would be that we all have pretty similar interfaces, but they're all slightly different too, because we're all, you know, adapting in different ways and that different animals have their own unique interfaces. So we have a certain amount of photoreceptors in our eye, whereas I think the number is three, might be five, or something like the mantis shrimp has like seven or nine. So they can see, and we only see one 10 trillionth of the light spectrum. So talk about a tiny fraction. I mean, one 10 trillionth is a very miniscule number, and that makes up all of the light that we can interpret with our eyes. But something like a mantis shrimp could see, you know, much more of that. So I think there's this, we're very conditioned to have a fully materialist viewpoint on reality today, where we think, you know, the atomic clockwork kind of universe. But I think there's, I don't think that's true exactly. And another school that goes into that is actually Austrian economics, where we could say that, you know, we mentioned earlier that an asset is not property. It's actually based on the relationship between the individual and the property. There's this whole realm of relevance associated with, we're all moving through life in the course of a goal-directed action. So when we walk across a room, I go from A to B, it's because I valued B more than A. So value is inseparable from human action. We have a rank ordered value system in our mind, each of us, and we're constantly taking action in accordance with those rank values. Anything that accelerates us on the course of our goal-directed action towards our goal is useful. Anything that impedes us, or we could say is valuable, anything that impedes us is actually obstructing to value. And anything that's irrelevant is just valueless. So this table that we're using right now, like this is a, it's an accessory to you and I, because it's holding this paper that's holding the information that's guiding our conversation. But we could pay someone $100 to jump over this table, and this table could simultaneously be an accessory to you and I and an obstacle to someone else. So it's this domain, this silent contention of willpower and agendas occurring across the face of the earth that is what Austrian economics really looks at. It's the realm of human action, as they call it. It's called praxeology. So it's a non-materialist viewpoint on reality and that things we think in terms of matter being reality, but it's often more so in the sphere of human action, what matters that is reality. It's the relevance of a thing to the course of one's goal-directed action. And that's ultimately exists in the space of ideas. Yes. Not in the space of physical matter. And just to jump back to this line here, I think his fundamental line here is, the question is talking about universal Darwinism as an asset, what does it leave behind? I've tried to show that once it passes through everything, we're left with stronger, sounder versions of our most useful ideas. That's the key point to me, and that ideas and information, so far as we can tell, are the most fundamental substrate of reality. And information itself, back to entropy, information is the resolution of entropy. That's what the bit is, right? It's a one or zero. Whatever reduces your entropy by half is a bit. And we measure information in bits. So, you're right. People don't have ideas, ideas have people. Honestly, it's a really profound idea, or a statement about reality, a reframing of reality. It's, if we're actually being deeply honest about it, it's quite painful. I do appreciate that you defended your biological meat bag earlier, but it seems like ideas are the things that have power. That me, Lex, for example, is worthless, and relative to the ideas that used my brain for a bit of a time. But, so far as we know, only human beings can generate and share ideas. So you can't say Lex is worthless. Like, you are the node of the idea sphere. I'm like, the newest sphere. So, I'm, what is it, from a Bitcoin perspective, I'm like, I'm mining, I'm solving the cryptographic problem and the, just generate. I'm a, in that sense, I'm a useful node. Yeah, you're competing to solve the puzzle of entropy, right, and when you do solve it, it benefits the entire network. But, I guess, from my perspective, just because just working in AI, I'm looking at the long-term vision. I see us humans and AI systems as really the same, and AI systems, ultimately, as something that supersedes humans. So what is intelligence? So, in the context of our current discussion, I think intelligence is very closely linked to this notion of ideas, and it's the ability to generate ideas, to mold ideas, to compress seeming chaos into some model, into some theory, that efficiently compresses the chaos in a way where you can then integrate it with other ideas, and they can play, and all those kinds of things. So, in that sense, it's the turning chaos into order. It's the molding of ideas such that our human brains can work with it. And, just from my perspective, I don't see any reason why that cannot be algorithmatized, converted into computational systems. I would agree. Which is scary. Scary, or potentially really promising, right? It's kind of the case with all novelty. It's terrifying as much as it is promising. That's why you're pursuing it so heavily. I would maybe take it a step further and say that intelligence, in maybe its most simplistic form, is error correction. Humans have wants. Again, we're constantly expressing our value through action. There's no other way to express it, by the way. It's whatever you choose to do in any moment, you are expressing the values you hold in your mind and your heart. As we move from less valued A to more valued B, entropy happens, uncertainty happens, we fall off course. And it is intelligence that enables us to render information from that experience and error correct, right? So that we can move slightly, shift our trajectory slightly more towards B that we're trying to move towards. So I think that there's something there that I don't know that we can make synthetically. And that if we define intelligence as error correction, it's like error correction to what? Error correction towards what we find is valuable. So we're trying to satisfy human wants. Might not just be our own, could be others as well. If I'm an entrepreneur, I'm trying to solve the wants of others, not just myself. And I'm trying to error correct myself towards that goal, using intelligence and processing environmental feedback through intelligence to error correct. So I don't know how, if you eliminate the human element completely, who's doing the wanting? Where does value come from? I know the machine learning people who are listening are saying that's exactly what machine learning is, which is error correction, because you have a loss function, objective function that measures how wrong your thing is, and you wanna make it less wrong next time. That's the whole process of machine learning. But you're saying what humans are able to do is in a world where there's no maybe objective values, absolute values, you're generating that very loss function, that objective function, that function that measures the error comes from the human mind. Some aliens might disagree with you, because they might have a different objective function. I would say purpose comes from consciousness, I think. And without purpose, there's not error correction. Yeah, I mean, this is again a hypothesis, like where does purpose come from? It seems to come from consciousness, you're right. That's where suffering comes from, and you want to lessen suffering. That's where pleasure comes from. It seems like it's consciousness. Maybe there's something to this biological meat bag. So to take it one layer deeper on this, and the reason I like this book so much, again, the case against reality. So he's making the case that space and time are not fundamental. Which I started my intellectual explorations in physics, actually astrophysics. So for the longest time, even the way I describe money as I talk about space and time, so that blew my mind. But this dovetailed nicely with another book called Leela. The author is Robert Persig. So he wrote Zen and the Art of Motorcycle Maintenance, which is a very popular book. 20 years later, he wrote Leela, which no one's heard of, which is crazy. And he basically says he was wrong about his first book. And he lays out this entire other metaphysics of quality, he calls it. So it's the metaphysics, I think it's metaphysics of quality. But his supposition is that it's not physical reality, that's fundamental. It's not informational information that's fundamental, it's value. So he actually, and it's a beautiful book, I highly recommend it. He essentially is refuting causality itself. We think A causes B. This book makes the case that B values precondition A. So that we are actually creating our future through our value systems. And this goes back to something, I think Solzhenitsyn said this, that the line between good and evil runs down the heart of every man. So it's as if our moral decisions are actually what's creating the outcomes in reality over time. And then that gets into all the wisdom traditions related to religion, or it's always talking about loving thy neighbor and loving God and all of these other things that are good morally to create the best outcomes. So values are fundamental. Value, yes. Value is fundamental. Oh boy, yeah, that's interesting. It does feel like physics is not capturing something. There's some people, panpsychists argue that consciousness might be one of the fundamental properties of nature, from which emerges everything we see. So that could be just other words for this same notion of value. And then the basic laws of physics are not capturing that currently. So maybe humans, in order to understand from where humans came from, we have to understand these other properties of nature, which are yet to be discovered at the physics level. And it's, we contend with that underlying nature, whatever it is, with the logos, right? So we're looking at uncategorized nature, and then we're assigning a word to it. So we're slicing up chaos into little boxes of order. And then we're establishing this social consensus as to those labels, which we call words, and we're using that to communicate. And when we communicate, we can start to build these other things. This is like the Yuval-Hirari imagined orders. So we can create these useful fictions, right? Whether it's the nation state or human rights or money. And that allows us to cooperate flexibly in large numbers so that we can better contend with reality. We can produce more complicated things. We can enlarge that bubble of civilization against entropy. And that's what capitalism is all about. It's about further specializing knowledge, further enriching mankind's treasury of knowledge. And doing it, but to do that, the communication media that we're using, the words have to have stable meaning. The money needs to have value that's dependable, right? It needs to be something that's, it's not dictated by any one group. It's reached by consensus of the entire group. That's how, so you could think it's like optimizing for error correction again, where a free market would be harnessing the intelligence of all market actors and a central planning or essentially planned market would be harnessing just the intelligence of a small group of bureaucrats. And it's not obvious how to achieve this kind of consensus mechanism. I mean, there's obviously, we'll talk about sort of Bitcoin as an idea. Ultimately, the idea of Bitcoin is connecting into physics. So like you can trust that physical matter won't change, but there could be other ideas that we get maybe physics could be changed. Farrick Weinstein has anything to say about it. Like it's, we right now believe that physics can't be changed, the physical matter of the world, but maybe it can in a way that we're in totally not understanding. You mentioned sort of reality from Donald Hoffman's perspective. Like if we don't have even close to direct access to the fabric of reality, maybe we're living in a world that's very like many dimensions that the notions of space and time is just like a silly and useful construct that's not at all connected. You're starting to look at like Stephen Wolfram's, I don't know if you're familiar with this view of the world that it's like hyper graphs underneath it all, like these mathematical structures from which everything emerges. Like they're like many, many, many orders of magnitude smaller than what we think of as they're even smaller than like strings and string theory. So like those are the basic mathematical objects from which it emerges. I don't, I think that's an interesting philosophical framework. It's also, people should check out a cool way to play with beautiful hyper graph mathematical structures. So he has, I don't know if you know who Stephen Wolfram is, but he created Wolfram Alpha and all these tools that you can actually visualize and play with. So you can play with physics in a visual way, which or at least discrete mathematics, which I think is incredible. He doesn't get enough love. One of the reasons he I think doesn't get enough love is because of this little quirk of human nature, which is the ego. And he sometimes frustrates a few folks because he's very, let's say proud of his work. I guess. But it's interesting to think about a world where we don't have direct access to reality as Hoffman argues. And maybe, I don't know if you can comment. I don't know if you're familiar with Ayn Rand's work and her whole philosophy of objectivism or her whole contention is that we do have access. I don't wanna misstate it, but at least she would claim that it's not useful or I think she would probably say it's not correct to argue that we don't have access to reality. We have, hence objectivism. We have direct access to reality. That's the only thing we can reason about. And the only way to live life morally is to reason through everything, starting with the axioms of reality, which we do have direct access to. You have thoughts about her work? I am slightly ashamed to say I have not read Ayn Rand yet. So she is high on my list and she's been recommended a number of times. So I don't know a lot specifically about her philosophy or objectivism, but to me, it resonates closely with what the American pragmatist commented on truth. And they distinguished what you could say is absolute truth, which is at the bottom of reality, whether it's Mr. Wolfram's mathematical formulas or value, whatever it may be, it's something ineffable, something beyond the reach of epistemology perhaps even. And maybe that's why religion just sort of points to it. It's trying to use, I think Joseph Campbell said something like religion is using stories to point towards the same transcendental mystery we all experience but cannot articulate. So something like the artist uses lies to point to the truth, something like that, that kind of thing. That's really good. But the American pragmatist said that, because at the end of the day, this is all about, when we say truth, we need something that is socially, close to social consensus and is not shakeable by political action. So that's what physics and mathematics are. It's an unshakeable point of reference, I guess you might say. So the American pragmatist defined truth as the end of inquiry. And in markets, we could say that the market itself is a forum that generates truth. We call this pragmatic truth to separate pure objective truth that we can't even talk about without polluting it versus pragmatic truth, which is something that's useful. So the example here would be, if I give you a map and you're trying to go from your house to the local brisket restaurant, and the map gets you from your house to brisket restaurant, is that because the map is true or is that because the map is useful? Right, they're very hard to disentangle when you're just looking at it pragmatically. And in markets, markets, I argue, generate three forms of pragmatic truth. One is the price. So this is the collective subjective demand and purchasing power of humanity running up against the objective supply of capital and resources in the marketplace. So there's demand overlaid on supply. The result of that is the price. So that is the most truthful exchange ratio, which is the closest approximation to the value of any good in the marketplace. So it gives us a data point on which we can operate. It's compressing all known market realities down into a single actionable number. You know, based on the price of bread or copper, whether you wanna buy more of it, you wanna abstain from buying it, or maybe you wanna try and find substitutes. And you can think of that price signal, it's like an economic nerve signal that's coordinating human action across time. So if we're one socioeconomic super organism or collective, that the price signal is the nerve. And that's the first form of pragmatic truth that markets generate. The second form would be tools and innovations themselves. So entrepreneurs are experimenting across time. They're trying to satisfy the wants of consumers. Consumers are sovereign in the marketplace. Whatever the consumer wants, the consumer gets, right? I'm trying to satisfy that. I'm trying to do it at a profit. So I'm trying to take viewing the existing price signals of goods in the marketplace. I'm trying to assemble those in a way at a cost lower than the final solution I'm delivering to my customer. I'm selling it at a price higher than the productive factors I combine to create it. And in that iterative process, we're constantly discovering new and better ways of solving problems or satisfying wants. So we could say to go out and dig a hole, right? Someone wants a hole dug, that a shovel is gonna let you do it much faster per hour than you would with your bare hands. So what is the pragmatic truth of digging holes? It's a shovel, right? It's the best way we know how to solve any particular problem based on the existing treasury of knowledge. So every tool, again, we're back to ideas being fundamental. The shovel itself is just a knowledge structure. We've figured out a way to create this particular implement and then we've indexed the raw materials we found in nature to this knowledge structure to create a shovel, which allows us to better satisfy human wants, faster, cheaper, better, effectively. I'm trying to generalize, you're blowing my mind a little bit here. I'm trying to generalize the idea of tool how to think about it. Cause I keep just, when you say tool, I keep imagining different tool, like specific instantiations of a tool. I'm trying to see, so the price is a pragmatic truth that's communicating value in this network. Subjective demands against objective supply. So it's an economic democracy. Got it. So that's the demand supply. And then the tools are the ways of extracting or solving problems is the more general kind of. Or satisfying wants. Satisfying wants. So wants are somehow, that's part of the supply and the demand. And wants are back to value, right? Cause everything someone wants are expressing their value. Okay, yeah, so the shovel is a pragmatic truth. The shovel is truth. It feels like a good book title. Okay, sorry. So what other, what is the third? And then the third one I would argue is virtue actually. Oh wow. And another way to maybe think about this is competitive competency, but it's also cooperative competency. So we're learning over time, what characteristics, what patterns of action, what mindsets, what mental tools, what heuristics are most useful to satisfying customer wants. So I think that becomes over time, becomes sharpened into virtue, right? Like we know it's best to be honest because if you lie, it's very energy inefficient, right? You're creating this little fork of reality. And then if someone else asks you about that lie again, you have to put another layer of lies on top of it. Where if you just tell the truth, you're just recollecting what happened. And so that sort of keeps, again, when we're talking about delaying volatility, right? If you lie, you're delaying short-term volatility, but you're increasing long-term volatility. What about murder? I haven't been able to figure out why murder is bad because I just keep wanting to murder people. And I've murdered many. I should see someone for that. Well, that's why I'm trying to get an interview with Vladimir Putin. So that's fascinating virtue in this market with the supplies and demands. And there's the tools, which is also a pragmatic truth. And there's virtue. It's a pragmatic truth. Yeah, and if we interfere with that free market process, again, if we overstep, which this maybe ties into murder, if you start to be coercive against life, liberty or property, so if you're forcibly taking someone's life, you're breaking down the trust in that market that generates these pragmatic truths. If you forcibly infringe on someone's liberty, right, for any reason other than them originally breaking or infringing on life, liberty or property, then that's not gonna work either. And then if you violate private property rights, if you steal property from others, you're breaking down the trust that the intersubjective fabric of money and markets and the rule of law, all of these useful fictions are meant to preserve, you're corrupting it and breaking it down. What's kind of interesting to think about the market as helping evolve the virtues. It's sharpened into virtues. And then these virtues can then go into motivational posters. People are like in books that we all agree on and then eventually take for granted as if they were somehow fundamental to human nature, but they're not perhaps fundamental, they're just pragmatic truths. Yeah, another way to consider competition itself is that it is a discovery process. So entrepreneurs are competing with one another and they're trying to best satisfy consumer wants at the lowest possible price. So they're placing bets of time, energy and capital on themselves, on their idea, their business plan. And then the market decides, right, the consensus of market actors decide which one was better, one lives, one dies. So competition itself is helping us get closer to truth, to pragmatic truth. So we're discovering what is the right price for this asset. And that price, by the way, is derived, again, in the sense of data compression. Everyone in the world can see that price. Everyone in the world can then put their skin in the game by choosing to buy or sell or short or go long or do any number of financial actions on that price. And that information is then propagated back out to everyone else. So it's this feedback loop between market actor and price that makes it so useful. And that's what carries us. So it's these collisions of interest that carry us. It removes the unuseful aspects of ourselves or of our tools or of a price and reveals pragmatic truth to us. Can you play my therapist for a second? And if we talk about creative destruction, I think, not Bukowski, Hunter Thompson has a quote, something like, for all instances of beauty, many souls must be trampled. Wow. But there does seem to be an aspect of competition that destroys. You were talking about entrepreneurs sort of on the outside of the circle of order, striving to make sense, to compress volatility of the chaos of the universe. Is there some way to protect a little bit against the pain of that destruction, of that creative destruction, that entrepreneur screaming on fire as he enlightens the rest of us? Is there some role for us humans together in the togetherness of it? Also government, but any kind of collectives in helping that entrepreneur who's on fire maybe after a few minutes to spray him with some water and put him out of his misery? I would say that pain is the inarguable basis of being. Pain is no matter how you try to explain it away or describe it, it's not something you can rationalize away. It's no one, I think, ever, someone may want to cut themselves to have an endorphin high, but no one wants to suffer, we'd say. So pain in that sense, it is what we're constantly trying to deal with and to move away from or create buffers between us and potential pain or potential uncertainty. And that pain is information. When we experience something that is misfit to the outcome we desired, that pain is what puts us, it encourages us to change our trajectory, to get back on course towards our valued aim. So as far as you need entrepreneurs that are exploring and you're trying to do something new, if you're a pioneer of any kind, you are courageously facing pain. You're willfully confronting it. So I don't think it's avoidable in that sense. It's not like we can have pain-free economic growth, like the central bank would maybe have us lend to believe that we can just run these experiments and when they fail, we'll just paper over all the losses and continue, or you're just delaying and exacerbating the inevitable volatility back to reality. But what I would say is that capitalism, because we're building, we're increasing the capital stock of the world, which again, capital is the mitigation of risk. So we're reducing the overall risk of existence by accumulating more capital in the world. And that's what protects that entrepreneur that's deciding, hey, I saved up a million bucks. I'm gonna go try this business idea. I'm gonna put all my money on the line. And if he goes up in flames, then his cost of living when he comes back to reality and he's starting over from zero, his cost of living is substantially lower starting over from zero than he would be out in the wilderness on his own. So it's the accumulation of capital stock is the buffer against uncertainty for everyone. And it gives you actually more potential to go out and experiment, to go out and confront the chaos of nature because you are better healed effectively. So I think we're speaking in sort of idealistic terms about the power of capitalism when it works well. Is there any aspects that you think that don't work well in a free market? In all the basic pragmatic truths that we were talking about, is there ways it can go wrong? So I would first argue that we have never seen an actual purely free market. Closest example would be, kind of geopolitically we have a free market and that governments are not necessarily governed. But they are premised on governing large groups of individuals. So that's not, doesn't exactly. You mean between governments? Yes. See, but isn't there still, so a free market, maybe you can correct me, is the free market still grounded in the ideas of, you know, property rights and all those kinds of things, right? So governments tend to also sometimes be violent towards each other. That's right. So they don't respect all the basic aspects of capitalism. That's right. So maybe another way to look at this is that gold is the original governor of government, actually. And this is the reason governments have abused and gone off of the gold standard. So historically, if you are a bank or a nation state, and you produce more currency than your gold reserves can justify, then people, then gold will flow out of your bank or out of your country. So there's this natural check via the money that, via capitalistic money, which is gold, right? Gold was selected by the free market. It's not decreed by government. It provided this natural check on government action. So my, I guess to get back to the original question is, we've never seen a pure free market because money has always been monopolized and coerced, frankly. So to try and answer what goes wrong with a free market is really difficult because we've never actually seen it. And I would define, free market is one in which government only protects life, liberty, and property. And so that has a very minimal role in society. Again, just as network security for the economic trade network. And anything that, any government function that goes beyond those three core functions, which by the way, are pretty much the core tenets of morality as well. So government's just really intended to preserve, you know, natural law, if you will. Anything that goes beyond that is, moves us closer to an unfree market. So every, regulation, every act of coercion is actually a gradation closer to a purely unfree market, which would be a monopoly. So in terms of what, I guess theoretically, we could say goes wrong in the free market is that it's volatile. It's trading off, it's accepting short term, short term volatility in exchange for less long run volatility. And this tends to be the way of nature, by the way. So if we, we could look at something like, there's a region in North America called Baja, California, and it runs into the United States and it runs down into Mexico as well. So the same topology, but two different jurisdictions. In the U.S., we very heavily manage forest fires. We're trying to manage forest fires, we're trying to manage nature effectively. Whereas in Mexico is much more unregulated. It just, when wildfires spring up, they let them burn off. North America, when wildfires spring up, we're actually extinguishing them. So we're constantly trying to dampen the short run volatility of these small brush fires. Whereas in Mexico, we just let them burn. We let nature do its thing. The consequence of this is that the wildfires still occur eventually, but they're much larger, much more devastating in North America, where human intervention is still happening. And so the wildfires are still happening and the wildfires are still happening. So we're trying to manage that. And so the reason why we're trying to do this is because we're trying to manage the natural corrective mechanism of clearing this underbrush with these more frequent and smaller fires at the cost of much larger fires. So again, we're delaying short term volatility and exacerbating long run volatility. And in Mexico, it's the opposite, right? Just these wildfires burn much smaller and more continuously over time. The further effect of that in North America is that the more the wildfires burn, the more they get so hot that it burns away the topsoil. So it actually destroys the fertility of the soil itself. So the point of this is that human intervention, right? Even the intention behind North American authorities managing that forest fire is to create less destruction. That is the intention. But the intention is divergent from the outcome. So in Telebian speak, you would say that Mediocristan into Extremistan. So Mediocristan would be something much more like nature where, for instance, you can't double your body weight in a day, probably can't even do it in a year, right? But in Extremistan, which is something much more information-based, you can double or send your net worth to zero in a single trade in a single moment, right? So when we try and intervene with natural biological systems that have these feedback loops, we actually start to push the system more, to behave more like an Extremistan system that has less short-run volatility, but more extreme long-run volatility. But the question is, where you look at capitalism or communism, for example, and by the way, yes, I will talk to somebody who's a Marxist or a communist, like Richard Wolff is a pretty eloquent defender of these ideas, because it's always good to really understand ideas as opposed to just reject them offhand. When you look at the system of capitalism or the system of communism, there's ideals, and a lot of people argue, in this perfect form would actually be good for the world. The question is, how resilient are they to the corruption of human nature? And I mean, you're saying that there's not a, there's never been a free market. It's a very true statement. The question is, how resilient is capitalism, or whatever implementations of capitalism we had up to this point, to human nature where one person will become successful through legitimate means, then starts to try to manipulate the system that takes it away from a free market, or takes it away from the things that gave them the riches in the first place, and then try to, through corruption, get more, get this, the thing you said, the lazy human ways. Now try to figure out how to get something for nothing. That's right. So how resilient do you think is capitalism to that? Well, the best implementation we've had of it really has been the United States, I think, up until this point, but it's still, the central banking itself, this was in the 1848 Manifesto of the Communist Party. Measure number five reads, an exclusive state monopoly in centralized control over cash and credit. So the central bank is a Marxist or communist institution. It is antithetical to the free market principles on which the United States was founded. And indeed the United States resisted the implementation of a central bank. I think it was Andrew Jackson. I know that there was the first national bank, the second national bank were both disbanded. And then Andrew Jackson, which is my favorite Tennessean, he has some famous quotes about routing out the bankers like a den of vipers. I think he punched one of the central bankers in the face. Back when our leaders were a bit more bad-ass, I guess you might say. And finally in 1913, the Federal Reserve was implemented and it's been kind of all downhill from there. So what is, can you, oh, sorry, okay. I was just gonna say that communism and capitalism, it's also a matter of scale. The ideal behind communism is from each according to their ability to each according to their need. Sounds beautiful, right? Sounds like a great, peaceful, harmonious way to organize ourselves. The problem is, and by the way, I am a communist in my family, in my home, right? Right, that's very small of scales. Yes, in your very small circles of trust, you're much more likely to behave selflessly towards one another. By the way, I look forward to the Bitcoin community clipping out that part, saying that Robert Breedlove is a communist and the ideals of communism are beautiful. Yeah, context matters, people. Sorry, go ahead. But to your point, it does not scale, right? As we move into this larger system of socioeconomic cooperation, which is necessary to deepen the division of labor, to generate more wealth, right, we need to interact with one another on much larger scales than this communistic utopian ideal, we get into the realm of capitalism where we need really sound rules, hard rules, consensus, verifiability, and frankly, prices. Because the other thing in Soviet Russia is they tried to replace the profit motive or the price signal with this devotion to this nationalistic faith and devotion, where it's like you don't need self-interest anymore, you don't need prices or profits, you can just protect Mother Russia, right, and serve Mother Russia, and that would create wealth. And what happened, right? They destroyed price signals, there were shortages, there were famines, there's all levels of corruption. Because to your point, it's once you, people have to run the system no matter what. So when people are always pursuing something for nothing and you put someone in a seat of much closer to absolute power, where they're making all the pricing decisions, they own all of the productive factors in the economy, they're not beholden to any market force. There's no market check on their action, that that institution tends to become more corrupt. And further, it's an inferior resource strategy. I alluded to this earlier, where the other way to think about free market versus central planning is it's decentralized or distributed computing versus centralized computing. So each one of us, I think that the number is 120 bits per second of active awareness. So we can take in, clearly we process a lot more than that, but our active awareness, I think is 120 bits per second. In a centralized planning body like in Soviet Russia, they had the pricing czar, maybe they had 10, 20,000 people deciding the prices for the entire country. You're only getting that much data throughput, right? 20,000 people times 120 bits per second. Whereas in a free market, if everyone is free to interact with deep capital markets based on an accurate price, you're getting the data throughput of 120 bits per second times the entire economy, right? So you're getting, it's a more efficient means for disseminating knowledge effectively. And then again, knowledge is just, the more knowledge a socioeconomic structure can contain, the more wealthy it is, right? Prices, tools, all these things are just knowledge. So in that respect, that's why something like capitalism, even in its marginalized form, state capitalism, out competes communism. It's distributed computing versus centralized computing. You know, we kind of brought up religion and Joseph Campbell and myth and the propagation of ideas. And kind of, before I forget, I wanted to ask your thoughts about this. You know, Jordan Peterson, I haven't really understood exactly, like be able to pin him down exactly what he sees as the role of religion in human society. But it feels like he's describing it as having value for us. The ideas of myth are valuable. They're valuable mechanisms toward, I think you mentioned kind of directing us in this world as a human society. Do you think about myth? Do you think about religion? What's the use of it in this construct of markets in this framework of where ideas are ultimately the fundamental thing that makes societies work? Yeah, I think Jordan Peterson, who I'm a huge fan of, he's been very influential on my thinking and influential on my own religious views as well. I think his position would be, and he said this before, that he acts as if God exists. And I've had some arguments about this before, but to me, that points towards, the preeminence of action and how important action is versus your cognitive beliefs necessarily. And I think there is a lot of utility in that, that if you follow the moral code of something like the Bible, you do reap benefits from that. Society reaps benefits from that. And sometimes I bring up this point and people will be like, oh my God, are you kidding me? Have you read the Old Testament? They're clobbering people with rocks, when they do the wrong thing. The Bible doesn't claim to be this, do everything that was done in the Bible. It's more like charting this moral progression, where we came from this very barbaric society into something more like the New Testament, where we're honoring individual sovereignty above the state and things like that. So I think that mythology itself is another form of data compression. If you look at these stories, Kane and Abel is a good example, or Peterson makes the point that it's a tiny story. It's a paragraph-ish long, but it contains so many layers of meaning in regards to violence, evil, betrayal, work, the divergence between intention and result. Because I think Kane is actually making, he's making the effort to sacrifice for God, but the sacrifices he's making are not, God doesn't find them useful. And so he sort of rejects them. For a, again, if we're organized by these useful fictions, these Herarion imagined orders, I think mythology is kind of the original version of that, where we were learning to organize ourselves around stories to best coordinate our action across space and time. And so I think it's very foundational. And back to what we were saying in the beginning, that if value truly is fundamental, I think it's interesting that all these stories point towards often common moral values. They're not perfectly aligned, but it does speak to just the evolutionary importance of morality and the subjectivity of morality. Where morality sort of evolves over time based on, frankly, the capital stock we've accumulated. The more capital stock we've accumulated, the easier life is, the less barbaric we have to be. Whereas if we're living in conditions of true scarcity, then we tend to be a bit more barbaric towards one another. And that too, to dovetail this into something largely unrelated, but I think is really important, is inflation. Inflation by artificially increasing the prices of goods and services in the world, right? We're injecting more dollars, chasing the same level of goods and services. We are artificially increasing scarcity, perceived scarcity, right? And when you increase perceived scarcity, you are amplifying divisiveness. This natural, the natural, the natural state of man is when everything is scarce and you really have to fight hard just to eat or drink water that day. So it's de-civilizing in a way by artificially amplifying the perceived scarcity in the world. Can you elaborate, how does inflation increase the perceived scarcity in the world? So we can think of the price itself is an indication, it's a data packet, if you will. The price is a data packet on supply and demand, right? It's telling you how much supply there is of something in the world relative to the demand. So when you print money and artificially increase that price, it's diverging away from supply and demand. It's becoming just more of a product of policy than it is of free market fundamentals. The more expensive something is, that is a signal to the marketplace and to market actors that it is scarce, right? That's why Leonardo painting might sell for $16 million. There's only one, there's a lot of demand for it. Maybe my numbers are off, but you get the point. It's the reason mask spiked in price after the COVID announcement, right? There was not enough supply, toilet paper, et cetera, et cetera. So inflation, and by inflation, I specifically mean arbitrary fiat currency supply inflation by legal monopoly, inflation's a commonly misunderstood word. That is amplifying the perception of scarcity among market actors in the world. And I would argue that it actually amplifies divisiveness. I think this is the key maybe to looking at the connection between the monopolization of money and things like cancel culture, because it's increasing our natural predilection to be combative with one another because we think there's more scarcity in the world than there actually is, versus in a world where you're not increasing the money supply, prices are declining every year. As prices decline, this is a signal to market actors and the market that scarcity is declining. There's less need to fight over things. And all of this ties back into the old Bastiat saying that if goods don't cross borders, soldiers will. So if we're not trading with one another, if we're not acting interdependently and we're not becoming more intelligent as a market, and that increased intelligence or increased knowledge is reflected in decreased prices, because prices are just the exchange ratios of things. So the smarter we can solve problems, the better we can solve problems, the less prices would be. So it induces more cooperation. I love how you tie inflation, cancel culture together as essentially artificial creation of increase of conflict, artificially increasing scarcity and thereby artificially increasing conflict. That's really fascinating. You're short-circuiting my brain many times throughout this conversation. Okay, this robot is struggling to keep up. Okay, maybe to step back at the useful fictions or pragmatic truths. Let me ask the question that you've answered in many ways already, but let's explicitly look at, what is money? Oh, as you know, that's my favorite question. Yes. That is the name of the show I just launched, the What Is Money show. Clearly, we could say the Bitcoin rabbit hole is what's led me to explore a lot of these ideas in depth. And I think as we've demonstrated today, it goes well beyond just the economic sphere when you start to think about things like exchange and morality and time preference and civilization. So I love the question, what is money? I think it is the key to incepting a deeper understanding of the world into people, that if you actually just start to ask the seemingly simple question, it surfaces more and more layers of truth. And I recently, I just wrote a piece, I think I have 30 something answers to this question. So there's- So in some sense, it's actually a more systematic way of asking the question of what is the meaning of life. There's some questions that are almost unanswerable, but in their asking allow you to get closer to truth, deeply understand the nature of our human existence. And the meaning of life is almost like this initial philosophers striving towards that. If money is indeed as fundamental as you've described, especially in the context of value being fundamental, then that is a really, that's a more, let's take a 21st century way of asking the same question about what is the meaning of life. You mentioned that it's a meta property out of the list of many ways to answer that question. How would you help people to think about that? Yeah, the first most serious answer comes from the School of Austrian Economics, and it defines money as a universal medium of exchange. So this would be any good that is used, held and used purely for purposes of facilitating exchange. So in the configuration of demand for any particular asset, it's bifurcated between its utility, which is something a service that it can render to you in real time, whether it's, you know, if it's water, you're thirsty. That's the utility of water is that it can quench your thirst. Whereas the marketability would be the expectation of future exchange that other people would want this asset in the future to trade it for whatever they may have. Money is just going to be the good in any trading economy that has the highest proportion of marketability relative to utility. So today that would be gold. Gold has utility, it's used in electronics, it's used in dentistry and whatnot, but it's largely used as a store value across time. And that's what it's been used for for 5,000 years. So if we say gold has a $10 trillion market cap, maybe 2 trillion of that is its utility value, or it's actually demand for use in computers and dentistry. And an 8 trillion of that is demand for its use as a store value. Money, the marketability aspects of money boils down to five services that money can render. Money needs to be divisible, it needs to be durable, it needs to be recognizable, it needs to be portable, and it needs to be scarce. So I'll gloss over a lot of history with this and just say that historically, money's always been a technology, still is a technology or a tool. I use these terms interchangeably, and you think of a technology as just a more sophisticated tool effectively. To best satisfy those properties, monetary metals were determined to be the most satisfactory tool, the most divisible, most durable, most recognizable, most portable tool in the marketplace. Of the monetary metals, gold was the most scarce as quantified by either its stock to flow ratio or its inflation resistance. So simple way to say this is that people always prefer the money most resistant to inflation. That's a nice definition of scarcity in the context. The money is, if you were to measure it, the resistance to inflation. So how hard is it to artificially increase the supply of the thing? That is the hardness of money. And that's why gold is hard money. Because alchemy is hard. That's right, because no one cracked the alchemy, so gold became money. So that's such a nice clean explanation of what is money with the five elements and gold ultimately won out because of the last piece of scarcity. That's right. And to get to maybe dig a little deeper there. So scarcity, we commonly think of scarcity as strictly a supply property, where if there's not much of something, then it's scarce. But it's not actually true. Scarcity occurs when demand exceeds supply. So when there's more demand than the supply can justify, the thing becomes an economic good and it establishes itself a market price. So there's more demand for the thing than the supply can satisfy. The unique thing about money as a concept at least is that demand always exceeds supply. There's never enough money to satisfy everyone, right? Because another definition for money, it's the most marketable good. So it can be traded for any other good service piece of knowledge in the marketplace. So humans being what we are, we're never satisfied, right? We always want more of something, whatever it may be. So money as the ultimate token of obtaining that something is always scarce as a concept. But the problem with money is that if you can, as you alluded to, easily increase its supply, then all of a sudden you can compromise the scarcity of it over time and you can rob people through inflation. So that's why the market's settled on gold as money. And robbing is reallocating the value that I, so essentially the one property, like why scarcity is important is it adds a lot more friction to the reallocation. Like through essentially violence or implied violence. Well, it prevents it through cost of extraction too. So if you want to go out and dilute gold holders today, you have to go out into the world and mine gold. It's a very expensive process. That process tends to find equilibrium where production cost equals the market value of gold. So if market value is $2,000 an ounce today of gold, its production cost is gonna be around there. That's the natural market equilibrium. So that way gold miners cannot just dilute people over time. Whereas you look at something like fiat currency, which we're jumping ahead a little bit, but its production cost is zero. So there's a reason the market value of fiat currency historically has always converged to zero because its production cost is near zero. So the extension to that question might be how did we get from gold to paper currency? And again, this is rooted in the properties of money. As good as monetary metals were and as good as gold is as money at holding value across time, it's rather limited in terms of portability. It is not as useful for moving value across space. This is another definition of money, by the way, a social device for moving value across space and time. So to rectify this technological shortcoming of gold, we introduced, first of all, the custody of gold was gradually centralized into more, into fewer and fewer warehousing operations. This is because there are economies of scale associated with using gold as money. And that if you centralize the custody, the warehouse owner can then issue a paper receipt called a warehouse receipt for that gold. And then market participants can trade that paper as if it's good as gold. And everyone has an option at any time to go and redeem real gold from the warehouse. So that system works until the problem with it is that it introduces the need to trust the custodian. So it's introducing counterparty risk in the form of the custodian. And now should that warehouse choose to increase the supply of paper notes to gold beyond its supply. So if it's got three tons of gold and it issues six tons worth of paper receipts, all of a sudden it's participating in a fraud. It's basically lying. It's representing that it has more gold than it actually does. And that is the pathway that we got into banking and central banking is we needed a convenience mechanism to rectify the portability shortcomings of gold. We needed to be able to move value across space, right? Gold was doing a great job at moving value over time, but not space. Paper currency gave us the ability to move value across space, but it introduced this attack vector for warehouse operators, which became banks, which became central banks to modify the supply to suit their own political agendas. Added the snooze button. That allows you to just do a little fraud first. To get something for nothing. Just a little bit at first. Just this one morning, just a little bit. I mean, I don't know if you can speak to the birth of a fiat currency. Is there some interesting characteristics to those early steps that created it? Like could it have been averted? Or is this the natural progression of governments? You know what's funny is that central banking was initially designed to be the custodian of gold, right? So they were going to custody the gold, issue paper on top of it, and then they would maintain, you could trust the public stamp effectively. You could trust that the central bank had as much gold on reserve as they said they had, and they were supposed to be the trustworthy institution. So we went from placing our trust in a free market game theoretic process, or trusting gold, and we began trusting this institution instead. That institution would not have arisen if the portability of gold was really high. If we could have somehow sent gold across a telecommunications channel, there would have been no need for a central bank. Everyone could have custody their gold in any information-bearing medium, frankly, and they could beam it around the world at any time. So this whole institution itself is rooted in a technological shortcoming of gold. So I think it's, another way to think about that is maybe had there been all the gold in the world today fills two Olympic-sized swimming pools, all the gold mined throughout all of human history. So there's not a lot, right? What if there had been just like way more? There'd just been, I don't know, 20,000 Olympic swimming pools worth? Portability wouldn't have been as much of an issue, right? We could have, and this is to say, assuming gold was still the most scarce metal in all these things, portability would have been less of an issue. We would have had less dependence or need for a central bank. So I think it's kind of idiosyncratic in that we just happened to end up here on this planet with a certain amount of gold. It best satisfied the properties of money. And a certain amount of humans geographically dispersed such that portability had certain properties that you wanna achieve for humans in the geographical space to be able to be exchanged values. It became more of an issue as we globalized, right? As it became more of a global society, we needed money that could move across space really fast, so we could trade in international capital markets. So that drove the central bank to become the dominant institution of the world. And if you follow the flows of gold throughout history, I've been watching this documentary on World War I and World War II on Netflix. I think it's called World War II in Color. Oh yeah, that's really good. So good. And when I say gold has been the governor of governments or gold is geopolitical money, like it is the base layer operating system, has been the base layer operating system for analog society. So it's always been about who controls the gold, is who makes the rules. And in that context, that's why Bitcoin is so interesting because it is the disruptor to this base level operating system that's functioned for all of human history. I think this is a good place to ask. We asked the what is money question. What is Bitcoin? That's a question as complicated as what is money. I think if you get a general understanding of money from a number of angles that we could say Bitcoin is the most superior monetary technology that has ever existed. So one of the most superior implementation of the ideas of money that you talked about, you talked about money as speech, you talked about money as an idea. We talked about money as sovereignty. Yeah, so we're attaching the concept of money to your point, to whatever tool best satisfies those properties of money or best renders those services we need for money. And as you said, you're using the word tool and technology interchangeably here. Yes, yes. And another thing to think about here is that we think often in terms of goods or services, but actually everything is a service. So it's not the physical properties of this pen that I find valuable, it's the services that it renders to me that I want to write a letter. This serves me by allowing me to lay ink on paper and communicate information. So value, humans attach value, as we alluded to earlier, to services, not goods. So the properties or the services that money renders that human beings value are those five properties, visibility, durability, recognizability, portability, scarcity. Metals best satisfied those services historically, but Bitcoin as the most superior monetary technology in human history essentially perfects them. It's as close to perfection as we've ever been. So in terms of divisibility, each Bitcoin can be broken down into 100 million subunits called a Satoshi. If that divisibility were ever a problem, which actually there was a question that came up recently, if you divide the world population by the total supply of Bitcoin, you end up at like 0.3 Bitcoin per person, call it 300,000 Satoshis per person. What if that was not enough to facilitate economic activity? And the answer to that is Bitcoin can soft fork into further divisibility. So if Bitcoin ate all the money in the world and the average Bitcoin or wealth will say 300,000 Satoshis each, but that wasn't divisible enough maybe to buy coffee and do all these day-to-day transactions, what would happen? It would increase its divisibility. So Bitcoin's perfected divisibility, the divisibility of money, lets us transact across scales. We can buy coffee or we can buy a house. Durability is an interesting one. So clearly something like gold is very durable. It's resistant to degradation over time. Bitcoin is just pure information, but it's stored in a distributed format. So information stored in a distributed fashion tends to be virtually infinitely durable. The example I like to give here is something like the Bible. The Bible is just distributed information. It's stored everywhere and nowhere, so to speak. And for that reason, it has outlasted empires. And Bitcoin's similar. You can't make changes to it unilaterally. But to make explicit the ways in which it is not durable is the fact that it relies on computing infrastructure. Like it needs computers. So if you were to destroy all the computers in the world, it needs mechanisms that store and transfer information. That's right. And so you could attack it. I mean, you could attack gold in the same kind of way, I suppose, to the physics, but it's probably easier to destroy all the computers in the world than it is to destroy all the gold in the world. Maybe not, I don't know. Anyway. Yeah, you're right. Maybe, I'm not sure which one would be harder to destroy. But the other thing is there's a dynamic incentive. So every time you destroy Bitcoin miners, you're creating incentives for anyone else with access to electricity to mine because you're making the algorithm easier. Yeah, so the destruction is difficult because of the decentralized nature of the whole thing. And the difficulty adjustment. Yeah, so you're gonna have to use nuclear weapons and cover the whole globe. But anyway. And by then, we've got much bigger problems than money, right? That's right. So, okay, so that's durability. So portability, Bitcoin's pure information. It can move at the speed of light. Can't get much faster than that. Recognizability refers to the ability to verify the veracity of the money or its authenticity. So you can actually, when we used to transact gold, there were time-honored techniques for verifying that it was gold and not gold-plated lead, for instance. This is where we get the term sound money. A gold coin made a very particular sound when dropped from a certain height. You know, you've seen people buying coins. These are all techniques for testing the authenticity of gold. And with Bitcoin, we have something unique in that if you're running a full node, you can verify that the Bitcoin is Bitcoin, right? It cannot be tampered with. It cannot be faked. And in addition to that, as a node operator, you can audit the total supply of Bitcoin at any time, which is unlike any money in history. So you know with full certainty, if you're holding 1,000 Bitcoin, you have 1,000 out of a possible 21 million forever. You have a guaranteed fraction of the total supply. Yeah, so a full node contains information about every transaction that's ever been had so you can figure out, yeah, I mean, all the truth of this money is all right there. Yeah, it's like a fractal constituent of the whole network, right? The whole Bitcoin blockchain is comprised in a node too. Not the proof of work piece, but the entire transaction history. And so that's unique as well. And that's what makes Bitcoin the ultimate store of value is that you know with certainty what the total supply is and will ever be. And you know that your share of that supply is fixed. It cannot change. It can only improve actually. If someone loses, you know, if the Satoshi stash is truly gone forever, the million Bitcoin never moves, then we're talking about 1,000 Bitcoin out of 20 million instead and so on and so forth. As more people lose access to their Bitcoin, they're basically making a contribution to everyone else. It's anti-dilutive. And there's certain properties of Bitcoin that are sort of a little bit more into the details that ensure that the full nodes, like the size of all the transactions that ever happened, at least currently can be stored in a single computer, for example. So it doesn't blow up too quickly. That's right. But you know, there's arguments that that's not necessarily, you can make arguments for that to be a very nice property, but you can also say that there's like drawbacks to it. That's hence the block size debates and all those kinds of things. Yeah, that was the Bitcoin cash civil war, right? Was that particular piece. Yeah. And you know, extensively they were saying, oh, we need more transaction throughput to buy more coffee and do more transactions. But what they were actually doing was increasing the size computing power necessary to run a full node, which would have theoretically compromised decentralization. So yeah, but it would in theory, in theory, it would allow you to have much more transactions. That's right. But the drawback, it would, because of no longer can be stored in a single computer, personal computer, then it naturally leads to decentralization. Same kind of thing we see with gold. Which would have compromised its survivability. Right. So what else is there? The last one, which leads straight into this one actually is the most important one of money, which is scarcity. And that you need to know the supply is fixed and safeguarded from counterfeiting and inflation, which counterfeiting and inflation are the same thing, by the way. Counterfeiting is criminalized inflation. Inflation is legalized counterfeiting. So central banks today, when they say they're printing money, they're not, they're counterfeiting currency. That's a very important part. And Bitcoin, as I've argued in some of my writing, is more than just an invention. It's actually the discovery of absolute scarcity. And that we have unveiled a property of money that we will only discover once. And it's got really major ramifications for the world at large. So with gold, for instance, as we've covered, it became money because it was the most relatively scarce monetary metal. Right. Its supply was hardest to increase over time. However, if we could somehow flip a switch today and make everyone in the world go out and start mining gold, we could increase the supply much more quickly. We could, you know, it's historic inflation rates, about 2%. We could double that pretty quickly. Bitcoin, with Bitcoin, it is not possible. So no matter how much effort and energy and capital and operational expenditure we pour into the mining network, we cannot deviate from its fixed and diminishing supply curve from between now and the last Bitcoin being mined in 2140, because of the difficulty adjustment. It's constantly, it's adapting to human action, actually. So the harder we pursue it, the more that it recedes. And then the less we pursue it, the more available it makes itself. And this is, it's a real major breakthrough because it's the closest thing to perfect information we've ever had in an economy. And perfect information is this, it's a theoretical but unattainable state of the market where all market actors have all the relevant information about everything so that they can compete as efficiently as possible. And in the state of pure information, we have, I'm sorry, perfect information, we have perfect competition. And in perfect competition, we maximize wealth generation. So we're competing as freely as possible from coercive and violent impediments. And so I think Bitcoin in that sense is going to pull the world closer to a state of perfect competition than we've ever been before, which would increase wealth generation to an extent we've never seen before. Many of the things you said about Bitcoin also hold for other cryptocurrency technologies that followed after. Can you say something to why you think Bitcoin is the superior technology from a pragmatic truth perspective than say Ethereum, but also other crypto, like Bitcoin Cash, like other hard forks of Bitcoin and maybe things that might yet to be invent, tools yet to be invented. Yeah, so this is a good point of argument because a lot of people have countered me and said, Bitcoin cannot be absolute scarcity because you can fork it and create something with the same properties as Bitcoin or potentially even better properties, right? You create something with a deflationary monetary policy. That's what Bitcoin Cash was actually. It forked Bitcoin with all of the same properties except for the block size that we alluded to earlier. The problem is that money is valued. Again, it's the good with a configuration of demand that is predominantly marketability. So it is valued based on its liquidity. That is how many other trading partners are there in that monetary network. So it is a network valued because of its liquidity and network effects. So any new entrant into the market for money is incentivized to always choose the money with the deepest liquidity and the most network effects. This is why money has tended to be a winner take all market because it's essentially a single purpose tool, right? It is a tool for, if we consider that tools are time-saving devices, right? The shovel lets you dig more holes per man hour than you can with your bare hands. Money is a tool, there's yet another definition of money that lets us calculate, negotiate and execute trades more quickly. So that function tends to coalesce towards one solution. And so the short answer would be that for the same reasons, quantifiable reasons, right? Like inflation resistance and liquidity and network effects that we have one analog gold, we're only likely to have one digital gold. And I think the Bitcoin cash fork proves that out empirically. It's a good case study because- Well, it's a fork case study, right? But okay, so that's really well put. So like gold was sticky. Once it was accepted, the network effects, the winner take all took over. And here's a fundamentally different kind of like analog versus digital is a leap in technologies. That's right. And you're suggesting that there may not be, there's unlikely to be other leaps of that kind into a whole nother kind of space of technologies. I would argue that Bitcoin it's kind of like the ideological synthesis of gold, taking the monetary properties of gold and combining them with the internet itself. And in doing so it has essentially perfected the properties of money, right? You can't get more divisible, durable, recognizable, portable or scarce than Bitcoin. So Satoshi has kind of, he left no design space for a superior technology to intercede and out compete Bitcoin at this point, now that it's established liquidity in the network. Far superior technology, right? Yeah, but it's a combination of the tech itself and the social layer that is coalesced to it. You can't separate those two out. That's right. They're all connected and then the political as well. I mean, but the portability, for example, that's another way to phrase that is the, what is it? The scaling. So the number of transactions, that's the limitation for Bitcoin that many argues a feature, many argues a bug. You have a bunch of cryptocurrency technologies that are able to achieve much higher, much faster frequency of transactions, much more transactions, all that kind of stuff. What are your thoughts on that? The low level of transactions that's possible with Bitcoin, do you think that's a feature? Do you think that's a bug? Necessary for security, actually. And even these other crypto assets that settle more quickly, they settle with less assurance of finality. So Nick Carter has a great piece on this actually called, the settlement assurance is stupid. It's really good where the gist of it is that there is more work being done in each block of Bitcoin that it is less vulnerable to reversion. So it's giving you higher degrees of assurance that your settlement or your trade has occurred with finality whereas other blockchains are much more vulnerable. And again, with Bitcoin, the evolutionary path of money with gold is that it was first used as a collectible. It then became used as a store value. After it had stored enough value, it began to be used as a medium of exchange. And then finally, when it was used widely enough as a medium of exchange, it becomes a unit of account. We actually start to think in the money. Bitcoin's following a similar path. So started out as kind of a collectible. Today, I would argue it's a store value, one of the most effective store value we've ever seen. So that evolutionary path that Bitcoin's following is similar to gold. First a collectible, today is store value. To be an effective store value, it has to optimize for supply cap. That has to be the first, and this is all Bitcoin really needs to do to be successful, by the way. Exactly what it's been doing for 12 years, virtually flawlessly, which is keep creating a block every 10 minutes and keep enforcing a supply cap of 21 million. As long as those two things hold, it is sound money, the ultimate sound money, the most inflation resistant money there's ever been. It's actually completely immune. It's taken unexpected inflation to 0%. We know with perfect certainty what Bitcoin's supply will ever be. For it to be used more broadly as a medium of exchange, it can't make trade-offs at the base layer to increase its portability, for instance. Even though portability is maybe kind of a misnomer because Bitcoin has extremely high portability, just doesn't have extremely high transaction throughput. So we could say you can move it pretty quickly anywhere in the world as long as you're willing to bid up for the block space, but you can't satisfy all the world's economic volume. You can't do 300 million transactions per second like you can on a centralized database like Visa. But Bitcoin needs to be this, it has to be a store value first before it can be a medium of exchange. So it has to protect the supply cap first before making any trade-offs for that. And I would argue that that's why Bitcoin is so rigid, is that it's optimized for survivability and optimized for that supply cap. And it's pushing experimentation and other features that would increase its transaction throughput to higher layers. So I think Lightning Network is something that's very interesting. It's still early, but there's a lot of throughput already being used on the Lightning Network. And it makes some slight trade-offs in terms of the trust minimization of Bitcoin. You end up trusting these smart contracts instead to move the Bitcoin, but you pick up nearly unlimited transaction throughput. So that's how, and that's how biology evolves. That's how the internet evolved. It evolves in layers. So I think Bitcoin, you can sort of conceive of it as the latest layer to the internet. And it's one that preserves this store value property better than any asset we've ever had. Let me ask sort of a critical question of, if you're wrong about your statements about Bitcoin, you find out years from now that you were wrong, what would that look like? What would be the things that make you realize you were wrong? Likely ideas or crazy out there ideas? Do you think about this kind of stuff? All the time. Because you speak very confidently about Bitcoin. And one of the things, let me put it this way. I think certainty, I feel like that's like a stoic statement. Certainty leads to ruin, something like that. Like certainty I think is an antithesis to progress often. And especially in your writing, but this is true for the Bitcoin community, there's a certainty about the Bitcoin. And that makes me very skeptical, no matter how good the ideas are. Whenever things are good, this might be the Russian in me. I think like, what are the ways this is gonna go wrong? So what do you think are the ways this might go wrong or you're wrong in your conception of what Bitcoin is? Yeah, so science evolves via negativa, meaning that we're not proving hypotheses. And that's what becomes the body of science. Science is whatever is left over as we disprove hypotheses. Whatever we can empirically through experimentation disprove gets discarded and whatever remains, whatever theory remains it hasn't been disproven is science effectively. This process is similar to market actors zeroing in on a store value. They're experimenting with different forms of storing wealth across time. Some do better than others and eventually everyone ends up on the one that is best. That's what gold was. In terms of understanding Bitcoin, I look at it as a similar approach. And then I'm actually, that is the main question I'm asking myself is, how do you stop this thing? How do you turn it off? How do you end it? If you're a nation state particularly who has the most to lose in this transition, what is the attack vector by which they neutralize Bitcoin? I mean, that is the $250 trillion question. And I've spent five years thinking about this thing very deeply. I've read everything on monetary history I can get my hands on. The general thought of how it has stopped, and this is the snag point that a lot of people get to in their explorations down the rabbit hole is they just say the government will never allow it. And that becomes kind of their bottom. It's like, all right, Bitcoin's interesting, it's superior money, blah, blah, blah, but the government will never allow it. And they say- Was Ray Dalio, did he say that? Dalio was currently stuck there, yeah. So Ray Dalio said that Bitcoin seems to be too promising. If it is in fact as promising as it looks, governments are going to, I don't forget what the exact quote is, but not allow it. Ban it. Yeah. Governments will ban it. So how do you get Ray Dalio unstuck from your perspective? Well- And how do you get unstuck from that idea that governments, will governments, how do you prevent governments from stopping a thing that threatens centralized power? Well, Bitcoin is an idea. So governments that are really good at fighting centralized threats to their power, right? Whether that's a currency counterfeiter or a competing nation state or business they don't like, or an individual they don't like, you know, they can kill them, they can throw them in jail, they can use any number of course of her violent tactics to suppress it. But how do you point a gun at an idea? How do you coerce an idea? And that's, you know, there's some anecdotal history here where there's the PGP case, which in the United States, the court was trying to classify it as munitions. When we were shipping this pretty good privacy software overseas, government wanted to classify it as munitions and restrict that exportation. But, and this was a circuit court case precedent when the PGP attorneys actually printed out the source code on paper and presented it as evidence in the court, all of a sudden it became protected under freedom of speech. And that it's just code is speech, code is language. And therefore, at least in the United States, it's protected under the first amendment. I think a government ban would be largely unenforceable, frankly on Bitcoin, being that it's pure information. If you suppress market actors from using it in one jurisdiction, you're just creating incentives for them to go elsewhere. And you're actually increasing the incentive for other jurisdictions to be favorable towards it because then they can create, they get to benefit from the tax revenue and the businesses and the innovation that's occurring in and around Bitcoin as a result. So you don't think if a particular central bank, like in Europe or United States, bans it, not maybe using those terms, but in some kind of way, you think that provides a really strong incentive for the other big players to enable it? That's right. And they're more likely, by the way, and governments know this, by the way, too. The other thing that causes the government to shoot itself in the foot is that if they ban something, they draw a lot of attention to it. People are smart. I mean, people ask why, why would a government ban it? Why can't I use this? So that's kind of typically be the last arrow in their quiver. They may try to ban it if Bitcoin really starts to monetize very quickly and the power structures that they impose today start to dissolve faster than others might think they will, than they might try and ban it. But I think that ban will be largely unenforceable. They're more likely to tax it, which they already do tax it. They're likely to increase taxation of it. They're likely to try and make it more white market by actually tracing Bitcoin, seeing who has it, attaching identities to Bitcoin ownership, and making sure that they're getting their pound of flush on all the transactions it results in. But I don't think, the other thing about this is, so we saw the internet outcompete intranets in that we'd say that open source networks tend to outcompete closed source networks. And there's a really good reason for this. And it's because in a closed source network, there are costs associated with defending the network itself. So you have to, the network owners, the owners of the closed source network have to expend resources protecting it from competitors, and they have to expend resources imposing its rules. Because they're not voluntarily adopted rules, so you actually have to impose these rule sets. Whereas an open source network, which is something much more akin to capitalism in its pure sense, these are voluntarily adopted rules. So all market participants have agreed and consented to this rule set. So there's no enforcement costs, and there's no turf protection, because anyone can freely enter or exit the open network. For that energetic reason, I think open networks outcompete closed networks typically. And in the digital age, that's why I think that's why internet outcompetes intranet, and that's why open source networks are gonna eat closed source networks. So what Bitcoin would be in that lens is the ultimate open source monetary network devouring closed source central bank monetary networks. And I just don't see how there's no possibility of unilaterally stopping Bitcoin or destroying it. So then they're more likely to regulate or tax it. And again, the other fallacy here is that a lot of people tend to think of governments as these singular indivisible entities that just move under one plan, but in reality, it's a lot of people, right? And a lot of people with loosely coupled interests and agendas and whatnot. Regulators and others, whether wearing their citizen hat, they're gonna see this thing monetizing, they're gonna be on the front lines of trying to regulate it, trying to control it. And I think what's likely to happen is they're gonna start to adopt it, to buy some of it, even as an individual, or possibly even ultimately at a central bank or sovereign wealth fund level as an insurance policy against its success. And once you start to acquire something and then you have a vested economic interest in its monetization, I think it kind of dissolves any of the power structures that are arrayed against it from the inside. So I've written a lot about this in a new series called Sovereignism, which is based loosely on a book called The Sovereign Individual. And that's the general thesis is that microprocessing technology would devour our organizational models, the most important of which is the nation state. So I think we're going into this world where coercion and violence is just much less rewarding. The economics of violence are declining because of the low cost of protecting property. You can now protect your monetary property in Bitcoin at orders of magnitude less cost than is necessary to run a banking network. So it changes the way we organize ourselves. And again, zooming back to gold as kind of the original governor to governments, where if they manipulated the money, gold would leave their country. That's why governments have taken relatively concerted action to go off of the gold standard. There's a great book on this called The Gold Wars that outlines how governments have been waging a cold war against gold for the past 50 years. Bitcoin sort of renews hope for that free market governor of governments. And that is this digital gold that governments cannot stop or co-opt. So I think it's something, that's why I think it's such a big deal is that it is changing, it's a new useful fiction, you might say, a useful fiction that's superordinate to the mythology of the nation state and government as the dominant institution in the world. Well, I hope you're right that all forms of centralized power start breaking apart naturally. So governments, the more and more power is given to the individual, whatever the technology is. And Bitcoin seems to be a promising technology that empowers that, enables that. That seems to be the trend. And that's a promising trend from at least from a perspective of somebody who values this particular biological meat bag that's full of consciousness. I think Bitcoin is exposing the greatest scam in human history, which is political authority. Like who gives anyone the right to be politically, have political authority over anyone else? People should be free to adopt the rules and systems and tools that best suit their needs. And that arc of history we covered earlier where as socioeconomic systems have become more favorable towards individual sovereignty, the more wealthy we have become, the more we have given the individual, we've maximized individual choice, the more wealth that society has created and the more it has out competed, the systems that have come before it. The latest would be capitalism triumphing over socialism. Before maybe we eat, you are in Texas, you brought over some brisket. Before we may be indulged in that, let me bring up one quick topic and then we'll take a break. And the topic of what some may term the toxicity of the Bitcoin community. You've written that Bitcoin toxicity is tough love. Do you wanna break that apart a little bit, sort of the idea, the philosophy of the toxicity that seems to be present in part in the Bitcoin community? Yeah, we were talking about this a little bit before we recorded and I've been through the gauntlet with Bitcoin toxicity as well. I came into this space professionally in 2017. I was originally running a multi-strategy crypto asset hedge fund. And my initial investment thesis on the world was that Bitcoin was a big deal, but there were all these other exciting coins and projects and ways the technology was going to be used. And that view of reality met this immune, I guess you could say as an ideological immune system, this Bitcoin toxicity, and that it's kind of a filter that's trying to catch bad or useless or even scamming ideas that this space is very well known for. As we've touched on today, Bitcoin, in my opinion, is this world shattering innovation, but it's in a sea of the most scammy stuff ever. People, anybody can go and create a coin. So you can go and launch one immediately online and you can throw up a website, an advisor page, post a white paper talking about how great your technology is gonna be and how it's gonna change the world. And then you can raise $30 million in Bitcoin or Ethereum in 30 seconds kind of thing. So it's drawn in a lot of this scam artistry, you might say. And I think people living through that, because there is this natural predilection for people. When they first come into Bitcoin, you're excited about it. Then you get lost in the shit coin universe. And then just looking at the market success of Bitcoin versus, and when I use the word shit coin, I'm just- You say with all the love in the world. All the love in the world. I guess you could call me a toxic maximalist in some ways. Although I consider myself a freedom maximalist, not a Bitcoin maximalist. Yeah, I saw that line. That's a good line. Bitcoin, tracking the market success of Bitcoin versus alternative crypto assets, the signal is very clear that Bitcoin has outcompeted all of them. So I think that Bitcoin cultural toxicity has evolved as an immune response to those bad ideas, which is actually, if you think about it, kind of is a tough love, right? You don't want new entrance to the space to get lost in shit coin jungle and learn the hard way, the way many Bitcoin maximalists have that the real innovation is Bitcoin. But like an immune system, I think it can also go too far. And so I think it's useful when it is defending the space from false narratives, we might say, but it becomes detrimental when it's attacking people that are inquiring about Bitcoin or people that are approaching Bitcoin with a good spirit and good intention and a desire to learn. Because then at that point, it's actually impeding the free flow of ideas, which the example, and your clip that was totally taken out of context. And then you're literally just saying, I'm here to learn and contribute. I think I've got some stuff to do. And then people attack that. Like that doesn't make any fucking sense. It's like you're attacking someone who's approaching it in a good spirit and asking questions. Yeah, and I think sometimes talking about it, the toxicity in the Bitcoin community as an immune response has a negative effect of giving it a pass. Because like it almost says, look, it equates it with the human immune system, which seems to do a really good job. And so you could say that the toxicity has a lot of features in the sea of fraudulent projects that steal money from people. It's really useful to make sure that you give people the harsh truth about who is and isn't a scammer. You have to take it apart, take it away from that metaphor of the immune system and look at basic human nature. And human nature can go to some dark places, which is it's sad to say that some people, maybe many of us can enjoy for its own sake, the toxicity, the mockery, the derision. And you stop being part of the immune system that makes a successful idea propagate and start being a sort of a destructive virus yourself. And that's something I think about because I am new to this particular immune system, but I've explored other immune systems. And I think you understand this world much better than me, but I tend to prefer sort of love as a mechanism for spreading ideas to err on the side of love and kindness. And almost like open-mindedness in a way where you're constantly lowering yourself in the face of other ideas, constantly questioning yourself. But I think I understand that that might be more applicable in certain contexts, like maybe in the space of science or something like that. But in the space of Bitcoin as it currently stands, there's so many people that are trying to scam others out of their money that the kind of harshness required is different. Nevertheless, I do want to put it on people like yourself and others who I know you wouldn't consider yourself this, but you're one of the faces or leaders in this space to call people out a little bit, to inspire them to be more loving, I suppose. But it's difficult because you wanna walk that line carefully. You don't wanna be too loving and open-minded. Otherwise your brain falls out. I get it. It's a difficult balance to walk. It is subtle and it's nuanced and it is difficult to walk. And I think that, that's why I try to say tough love because when we're young, we may have certain ideas about the way we want our life to go, but then maybe our parents are not letting us do certain things. And we think they're, I know when I was a kid, I wanted to get my, when I was in fifth grade, I wanted to get my ear pierced. My mom wouldn't let me do it. And I was, oh, come on, mom. Thought it was so cool. And then two years later, I'm like, thank you, mom, for not letting me get my ear pierced. I think it comes from a place of good intention that they are actually, they have asked themselves that question, right? That they've been inquiring in why not this crypto asset or this crypto asset. And they've done the exploration. They keep coming back to Bitcoin and they've seen people being taken advantage of. But to your point, it's like it can, this tough love can become detrimental, just like the immune system can become detrimental, right? It can overreact and it can actually harm the human body. So I would say that it's such a tricky and nuanced topic that even biology hasn't figured it out, right? A lot of people have autoimmune diseases. And then there's the other thing that we have this natural, I agree with you about love. I think love is like the deepest value. That's a whole nother philosophical thing, but it's, we're biologically programmed to pay more attention to things that are adversarial or harmful, right? That's part of the, us protecting the meat suit, so to speak. So there is some maybe better delivery method by being a little bit toxic to really get the point across. Like, hey, don't get lost over here. These things can hurt you. Really try to focus on Bitcoin, but the toxicity of that message, I guess it increases its ability to penetrate the individual, but it can also go too far. So it is very- It's interesting, but I, almost to push back a little bit, the toxicity is a funny word. I think maybe another way to say it is, I brought up like Christopher Hitchens and somebody who like, okay, you might say is toxic or something like that, because he's basically an intellectual powerhouse who's also a troll. So he's constantly, it's like guerrilla warfare in the space of ideas. He's very harsh in his disagreements and criticisms, but it's done with incredible grace and skill and poetry. So- We could use more of that. We could use more of that. So toxicity just like, these are just words. They can mean a lot of different things, but disagreement doesn't have to be done with love, but it should be done with skill if it's to be effective. So there's a lot of ways to be effective in guerrilla warfare, but you wanna learn how to shoot or whatever the weapon you're using and to do it well. Some people do it better than others. And it's worthwhile to learn to do it well. Again, I prefer love, but even love, just because you think you're communicating a good idea, which you very well may be, doesn't mean it also doesn't require skill to do the communication well, whether it's disagreement and harsh or more agreement and loving and so on. Yeah, I think very fundamentally that all of our decisions, we alluded to earlier that every decision is an expression of value or every action we take. They ultimately come from fear or love. Fear would be something much more in the biological domain where it's like we're trying to protect ego, we're trying to behave selfishly. This is the domain of sin. I don't know all the sins, gluttony, greed, sloth, wrath, lust, pride, envy, these are all selfish behaviors. Whereas something like love is much, it's morally superior and that it's more selfless. I don't know that we can properly define love with words at all, but I would say maybe like selfless action could be kind of a generalization of it. And that way it is really hard to your point. It's hard to love in a world that has a lot of conflict that might make you fearful if you're really focused on your meat suit, but if you're focused on the bigger picture and you're focused on others and legacy and life that there is a way to do it. And that's why I actually think Christ, that is the highest moral aim, right? He met all of the vitriol in life, betrayal, hate, violence, he met it all with love and he met it with compassion. And that's why, regardless of if you believe that he actually lived or any of this, he is symbolic of the highest moral consciousness possible. And Carl Jung would say that that was a suitable alternative to psychoanalysis, was actually setting your moral aim higher and striving towards it diligently. So, I mean, I agree completely. We need more of that in the Bitcoin space. We need more of that in the world, frankly. In the world, yeah. And these things, they're all intertwined. We touched on the beginning, all of us get to decide, but the world does influence kind of if we adopt fear or love. But it takes, I don't know, it takes good systems and it takes, I guess, good leaders to set an example. Yeah, I do believe that there's like individual people can have a ripple effect. So that's what I try to do, sort of embody the, I'm just one ant. But one of the things I have faith in is, I'm trying to do that more. I know this is a podcast, but I'm trying to do less talking and more doing. I've been disappointed in myself, if I'm being honest, how much talking I've been doing, you know, as opposed to like in my own private life, I live the thing I talk about, but I also haven't created much, you know? And I believe in the power of individuals that create stuff, like create an idea. Through those individuals that try to create something new, the world progresses. And hopefully there's more and more, more and more of those people. So you mentioned kind of people who, what the Bitcoin community may call scammers. I have a lot of passions in my life that I focus a lot of my attention to. You know, Bitcoin doesn't happen to be yet one of them. Bitcoin and cryptocurrency, you know? Glad you said yet. I'm always looking for things to really fall in love with. So how is a person like me supposed to figure out, I also happen to have a platform a little bit, and how am I supposed to figure out who is interesting, what is an interesting set of ideas and what are not? Because people are financially tied into a lot of the cryptocurrencies that we're talking about, certainly with Bitcoin. You know, their livelihood, their wellbeing is tied up to it. So it becomes much more emotional, much more personal. It's no longer purely an exploration of ideas. It's really almost like a threat on your property. Like it's a personal threat. It makes it very difficult to explore those ideas. So I understand it, but it makes it very difficult for somebody like me to just walk in and be curious. So how do I proceed in this difficult world and exploring this landscape and not give a platform to ideas that may harm others? I guess first I'd like to commend your forthrightness about this because I don't think many people try to walk that line necessarily. People, again, kind of the territorial imperative, they'll put whoever on, they'll help expand their reach. Oh yeah, that's true. Or say whatever needs to be said to expand their reach. So I think you're coming from a good place. I'll say that. There's a great piece written on the topic of scammers and scamming. I think it was by Goldstein. He wrote a piece called, Everyone's a Scammer. And it's sort of back to this, you know, general human proclivity to try and get something for nothing always, which again, it can be positive. It can be innovative or it can be negative. It can be trying to steal from people. That might be, I think that's a useful piece just to kind of see the crypto world through that lens. And that's how Bitcoiners are thinking all the time. They're by nature adversarial thinkers. So they're trying to minimize the need for trust in any situation and maximize verification. As far as sifting through the ideas, I guess this is back where the cultural immune system has some utility. Because there were times when I thought this particular crypto asset, you know, Augur was one I was really into, that it could facilitate prediction markets and prediction markets could make markets more efficient, et cetera, et cetera. But when that investment thesis basically met the cultural filter or immune system, it forced me to reevaluate my position, forced me to really look into it more deeply. And through that exploration, I realized that it would need to be built on Bitcoin to work basically. So, but it really comes down to like you doing your homework, but we can't all deeply evaluate every idea out there, right? Yeah, one of the things I struggle with was Alex Jones, for example, had dinner with him. I could tell that would be a very fun conversation, but like then I also understand that there's like consequences to that conversation that should be explored with care. And so you need to take on the responsibility of being a chef or the puffer fish and all those kinds of things. That said, just like you said, it's very difficult to know this ahead of time and I will probably make mistakes. And that's a shitty thing to have to live with, that I'm going to make mistakes and some of them very large. Like, yeah, I mean, I can imagine a bunch of different ways, but all we can do in this world is once we make the mistakes, we acknowledge those mistakes. Yes, learn. And learn. And also, I have to put this on the rest of us that you don't take one thing that a person did and then burn them at the stake for it. That you realize that we all make mistakes, that a particular mistake does not make the person. And this applies to taking stuff out of context over hundreds of hours of talking, but it applies to actual like in context, big mistake. Okay, so what if I murdered somebody at some point? Just give me a break. No, there are some things that are too far, of course, but in general, we need to give each other a chance. Yeah, but I'm still, I walk with a heavy heart knowing that I'll probably make a mistake, especially one that I didn't mean to. That's the one that worries me most. Well, this is human nature. Like, hamarthia, to miss the mark, that's the root word of sin. We are sinful by nature. We can't help it. There's no way, again, pain is information, right? There's no way to learn other than trying, failing, learning. And then you put yourself in better formation, right? In formation to better deal with it next time. So I hope, I don't get the sense that you're actually afraid of making a misstep. Like, I think you just maybe disappointed's a better word. Like, you know you're gonna make the mistakes. Yeah, that's exactly it. That's a much, much better word. But we have to embrace that. That's the only way anything, it's the only way we can advance is that we're dealing with an incomprehensible reality. All we can do is throw spaghetti at the wall and see what sticks. And in that process, we're all inherently gonna hurt ourselves and hurt others, and that's where love and forgiveness come into play, right? And yeah, I think the other thing is that this culture of reducing people down to a label, right? Whether it's racism or whether you're calling them a scammer or any number of terms, you're discounting their sovereignty to zero, right? You're taking a super complex human that is vast, contains multitudes, is changing over time, and you're trying to put them in a bucket of a word. And that is just, I think, a cognitive fallacy. Like, it's not only gonna hurt the person that you're winnowing down to a word, it's also gonna hurt you. And it's gonna, in your attempt to de-complexify reality by assigning this person to a term, you're actually gonna create bad outcomes for yourself because you're not gonna understand that person. I do also think there's a failure of our social media technology that incentivizes that kind of reduction to a label. It's just the viral nature of that reduction. So it's not, not only do we humans naturally do that, our social media platforms make that easier, more fun, more effective to do that at scale, the mass hysteria. So I think there's actually technological ways of adding friction to that. Yeah, I wonder, I mean, I agree with you that it's social media is an amplifier to our natural, this natural way of dealing with one another. But I wonder, and my thinking has evolved a lot on this, that there's something below the way we're treating each other too, right? We could say civilization sort of advances in the tools we make and the way we treat each other. We tend to have better tools, better quality of life, and better morality, better quality of living and ways of dealing with one another. And I think that when you corrupt the money, that it really does push us the negative direction, pushes us away from, again, encouraging or magnifying scarcity artificially causes us to be more divisive. When things are more divisive, we tend to be less civilized, less nuanced, more black or white, this or that, or you're this, label A or label B. So I really think, and this is a harder one to unravel, but I think if we can fix the money, right, which again is the base layer operating system for human moral action in the world, that it has downstream effects. So we'd actually maybe start to treat each other a little better on social media, despite the fact that it enables this faster communication. That's interesting. So perhaps fixing social media, as I've been thinking about, is treating the symptom, not the cause. Yeah, that is the Bitcoin rabbit hole in a nutshell. As they say, fix the money, fix the world. You keep tracing these different social malaises or technological difficulties, lack of innovation. Weinstein's entire portal podcast, something went wrong in the early 70s. We went off the gold standard in 1971. And there's a great website, wtfhappin1971.com, goes through this whole gamut of socioeconomic data that's completely gone askew since the early 70s. Yeah, you had this whole video. What do you think about Eric Weinstein and Bitcoin and the gold standard? Does he, I actually haven't heard him talk about his thesis about the 70s in connection to the, going off of the gold standard. Yeah, what are your thoughts there? What are your thoughts about his general relationship with the Bitcoin idea and the community? Yeah, the first exposure I had to Eric was his, I think it was his first episode with Peter Thiel. And they're going through that thesis that there's been this general institutional rot and suppression of innovation since the early 70s. And he's trying to identify what it is. I don't think they ever pinned it on the money on going off the gold standard. But in recent interactions with Eric, I've interacted with him on Clubhouse. We recently released an episode of the show I did with Chris Espley and it was titled, Dear Eric Weinstein. So we're going through his worldview that he's expressed in the portal and tying it back to the money in different ways. And he's been, he's engaged. Eric retweeted the show. We had exchanged some messages. He's been very open-minded. He's asked some really good questions. So I get the sense that he's approaching this very wholeheartedly. He does bring with him his existing worldview and his existing theory. The one that really blew up was gauge theory. They got really popular. I don't know a lot about gauge theory. I actually messaged Eric and said, I wanna learn more genuinely because, he seems to be serious that that needs to be considered in the sphere of money. And so I wanna learn more about it. But I think overall it's great. It's great to see an intellectual heavyweight of his caliber gravitating towards Bitcoin. Yeah, he has some gauge theoretic conceptions about the world broadly, but also about economics, which ultimately boils down to just a set of mathematics, which allows you to more effectively reason about the world. And he has a certain set of views there. So it's fascinating to see him grapple with it. I think he's also kind of, actually kind of like all of us, grappling with the idea of what is Bitcoin in this world. It's a very young technology and it's unclear exactly how the ideas of the past fit with it. Yeah. And integrate how the two integrate together. And so it's interesting to explore, not just Bitcoin in the particular. So for me, like what I've always saw Bitcoin as from the beginning, from a narrow worldview is computer science, which is where I come from. And so I wasn't almost aware in the social, political, financial aspects of Bitcoin. But now I see that there's not just power, but there's fascinating ideas to explore on that side of things. Not just the computer science, not just the technical details, but the political, the socioeconomic, the philosophical. Yeah, that's where I find all the fascination in the world, frankly. I would, one other thing about Weinstein and intellectuals more generally that are skeptical of Bitcoin, I would challenge them to read the book, Human Action, written by Mises. I think in 1949, he published the English version. It's essentially the Bible of Austrian economics. And I think Austrian economics is a noticeable gap in most modern intellectuals worldviews that is not taught in school. I mean, I have a master's degree in accounting and finance, studied a lot of economics in school. There's not one peep of Austrian econ. The least, we love talking about all the degrees he has. I was a CPA, all that. But that curriculum that we get in college is noticeably deficient in Austrian economics. And I think there's a reason why. It's heavily government influenced. Again, master's degree in accounting, they never taught me about what money is or where money comes from. All you learn is that the central bank issues money and the central bank takes money away. So it's conceived of in the textbooks quite literally as God, right? An entity that suffers no opportunity cost that basically is the foundation of the entire Keynesian worldview that you're taught in economics. And Austrian economics is the opposite end of the spectrum of that, right? It's actually the culmination, which economics is the youngest science in the world, by the way. So it's the frontiers of science in many ways. When I say praxeology, many people have never even heard of that. But it's something, it's an a priori study equivalent to something like mathematics, that you're building things from first principles to reason about economic reality. And I think that book, it's a very difficult book written by Mises, 1,200 pages, translated from German. The way he wields English is fascinating and terrifying all at the same time. It'd probably take you six months to read it if you read it daily, seriously. Like it's a beast of a book. But that will plug the gap, I think in most, any intellectual that's skeptical about Bitcoin, I think that will plug the gap that's necessary for you to see it in a new light. Well, I'll take that as a challenge. Now that we took a little bit of a break, hey, some good Texas brisket. Thank you for that, by the way. Oh yeah, quite welcome. Let me ask the ridiculous question. At the core of the idea of Bitcoin, is this guy or this entity named Satoshi Nakamoto? So the ridiculous question is who is Satoshi Nakamoto? And first of all, is it you? It's not me. I wish. And is this an interesting question? Or is it just something about our human nature that wants to, that always tends towards mystery? Well, as we've touched on a bit today, mythology, in my opinion, is something that is intrinsic to how we see the world in a lot of ways. Like it's how, it's kind of the structure by which we build these useful fictions. And so in that way, you could just say that Satoshi is the godhead of Bitcoin, effectively. And I think a compelling argument could be made that his disappearance is what really solidifies Bitcoin's decentralization. Because if there were one individual to personally vilify or denigrate or attack, to disparage or question the motives of, if he's out on the Hollywood Hills partying, everyone knows he's got a million Bitcoin, it would just kind of tarnish the entire project in a lot of way. The fact that on that theme, something for nothing, this guy actually gave humanity something for nothing. And it appears that he didn't profit in any way, he, she, or they. Actually heard recently that he identified as a he in some of his communication. So it sounds like it is a he. Like his communication is being studied almost exactly as if he is a religious, like a prophet. It's fascinating to imagine that he's still alive and living in this world. And it's even more fascinating to imagine that he's perhaps participating in the Bitcoin community. Because that takes a special human being to, out of principle do that, to remain anonymous. That's very much the George Washington. I always wonder like how many people are like that? There's a cliche that like absolute power corrupts, absolutely like power corrupts. But it seems like the progress of humanity depends on the people whom power doesn't corrupt. And it's enough to have just a small selection of those. And even if most of us are too weak, we give into power if given the chance, all it takes is a few. That's, I've never thought of it like that, but Marcus Aurelius immediately came to mind. Yeah. You know, the guy that he had the keys to the kingdom and he apparently adhered to the stoic virtues until the end. But yeah, I agree with Satoshi. The other thing that's interesting is he would be by far the most wealthy person in the world on a liquid asset basis, as he has a million Bitcoin, which is 60 billion liquid net worth at current prices. So if he is still alive and just operating in the world, he is daily and moment to moment resisting massive incentives to go and just be the richest guy in the world. He's the ultimate hodler. Yeah. Yeah. I mean, so it's, I mean, it's turning down not just financial success, but also fame. I mean, fame is another drug. It's kind of power, but it's in itself is also a drug, especially in this modern society, in this attention. And he would have both. He would have both. It's fun to imagine who it could be. It's fascinating if it's somebody like you or somebody like Elon or somebody like that. That's fascinating to think about. I think Elon would be hilarious. He came out and he was Satoshi. He'd be like, hey guys, I know I'm already the richest guy in the world, but I gotta go ahead and double my lead here. What do you make of Elon Musk investing, with Tesla investing in Bitcoin and maybe broaden it out in some of these other, big billionaires, but also people tied to major companies investing in Bitcoin? Yeah. I think Michael Saylor really led the charge on that. He's the CEO of MicroStrategy that I think they've acquired upwards of $2 billion in Bitcoin now, started acquiring August, maybe of 2020. And he's personally bought a lot of it. He bought a lot as a treasury reserve asset for his company, MicroStrategy. Then they leveraged up on a convertible note and bought more. So he's really gone, really leading the charge in this Bitcoin institutional adoption. Your conversation with him is a really interesting one. Your series of, I mean, series of episodes I suppose, but it's only a couple of conversations, I guess. Yeah, we recorded twice, five and a half hours each. So it's about 11 hours of content. Yeah, thank you. It's a lot of people have said that it's the best first principle thing they've ever seen on Bitcoin, which I take no credit for that at all. I mean, I just sat down with a guy and unleashed him. He's just a beast. Yeah, but it's fascinating that his long-term vision with it. I mean, I'm not sure I'm all philosophically bought in, but if he's right, if this set of ideas are as powerful as he describes, as you described, that this would change the world, which as you say, it's funny that a company like MicroStrategy might be the company that has the biggest macro effect on our economy and our world. Yeah, the conversation reshaped my worldview a lot too, because he framed money as energy, which I had often thought of money as time. And it explored those connections a lot in my writing, but looking at it as energy, and then his supposition that the purpose of life is to basically channel energy across space and time. So we're just trying to figure out how to channel more energy across space and time toward the satisfaction of aims. And his definition, his answer to that question, what is money, is that money is the highest form of energy a human being can channel. So it's a claim to all other forms of energy we can manifest in the world. And that just completely reshaped how I see it, brought in this whole other side to my intellectual explorations of money. Can you elaborate on that a little bit? So I understand money is time, which in itself is a really powerful idea. But money is energy, channeling energy. Can you break that apart? Yeah, so I guess, definitely have to check out the whole series to really get his perspective, but I'll do my best to condense it. Life itself, all forms of life, they're dependent on energy. Energy fuels everything, fuels life in action and motion and all of that. And we could say that maybe like a plant is harnessing solar energy and then reallocating that into growth. So its aim is to grow towards the sun. So it's allocating energy towards its goal of harnessing more solar energy kind of thing. So, and humans too have evolved to figure out how to harness energy in different ways to satisfy higher and more complicated aims. So the original energy network that he referenced was fire, right? We actually learned to wield fire as a tool in and of itself. So not only are we learning to channel energy, but we actually learned how to isolate energy as a tool in and of itself. So we went into that, how harnessing fire had changed human beings. And actually, this is one of the earliest examples too of a co-evolution between tool and our biology, because when we developed fire, we developed cooking. And cooking is, you can kind of think of it as pre-digestion in a way. We're liberating these macronutrients or making things that otherwise would not be digestible, edible, and it increases the efficiency by which we extract nutrients from food. That's what cooking does. So when we figured out cooking, we liberated all these digestive resources that were reallocated towards higher cognitive development. So there's this evolutionary path between figuring out fire and us becoming smarter, which was interesting. Some other early examples he gave, he went into were missiles and hydraulics. So missiles being, we learned to hunt at a distance. We can't bring down a wooly mammoth, maybe with spears and up close and personal force, but we could with spears and javelins and slings and whatnot. And then he went into how we've used water to channel hydraulic energy. So we can basically overcome gravity. We can move, you know, there's theories that the pyramids were constructed using, the blocks were moved using hydraulic energy or using water. Clearly we use like cargo ships and whatnot to move things much more efficiently across water than we could the land. So his whole view is how we keep figuring out better ways and more efficient ways to harness energy and channel it. And in that perspective, money has always represented a claim on all other forms of energy. So whatever energy couldn't be channeled towards something useful in the economy, historically would go into gold mining. So gold became this residual, this economic, this token of the excess energy created by the market economy. And then you could take that token of energy and use it to redeem for any other form of energy or any other products of energy itself. So it's, I guess it's my best approximation of it. And it just really shattered my worldview again, because I'd always thought about it as time. Like we spend time sacrificing to obtain money that we then redeem for commencement sacrifices from others, but I'd never considered it purely as energy. And then it also ties back into gold where there was an energy expenditure necessary to obtain gold. So there's a proof of work associated with obtaining gold that protected its market value. All right, so you had to expend, again, if market value of gold is 2000 an ounce, you had to expend 1900 an ounce mining. So it kept producers honest in a way. So do you think something like proof of stake that's more about reputation than, than actual exertion, like energy can work? No, I think proof of stake is inherently centralizing. It's like the old Matthew principle, from those who have to those who have more will be given from those who have not, everything will be taken. That's what proof of stake is. You need proof of work to embody skin in the game in the marketplace, such that contributions are commensurate with consideration received. That's how systems work. What's the idea why proof of work might incentivize decentralization? Do you worry that as Bitcoin becomes more powerful, it may become again more centralized? Well, the decentralization of Bitcoin is largely driven by the nodes actually, which aren't actually mining. They're just choosing which rule set to implement. And then the mining network is actually enforcing that rule set. So I think the mining network is inherently decentralized in that really anyone with access to cheap energy can become a miner. You can freely enter or exit the market or the network at any time. But maintaining the block size at a manageable level is what's key to maintaining node decentralization. This is an interesting question. Who do you think has more power, the miners or the nodes? Because the nodes carry the idea of the protocol, like the specifics. So in some sense, they have more power. If Bitcoin is an idea. But then- They're kind of mutually indispensable though, because you can't have, there's no security without the miners. So without the miners, Bitcoin is just an idea. And the idea of Bitcoin is maybe existed even before Bitcoin, right? Just sound money. We just say sound money is an idea. But there was no way to root that into thermodynamic reality without Satoshi figuring out, not just proof of work, it's the entire composite of the difficulty adjustment, proof of work, one-way hashing, et cetera. So I don't know, that's hard to say, hard to disentangle the two. You've talked about money as morality too. How do you think about moral and immoral action in the context of money? And there's this great quote by Rothbard, who's a famous Austrian economist. And he says, quote, to be moral, an act must be free. Unquote. And I think morality, it changes over time and it has its roots in biology. Jordan Peterson makes the point that even animals have their own sort of pseudo morality. With wolf packs, for instance, if there's a dispute between the alpha males, or I guess between an alpha male and an incumbent, the two males will have a fight basically. And then when one is decided that one has won, the loser will basically roll over and give up his neck to the alpha male. And they do this instead of fighting to the death because in a wolf pack, they need every wolf so they can go out and bring down, you never know when you're gonna need the 20th wolf to bring down the big buffalo the next day or whatever. So they've developed this less than fight to the death social morality to optimize their effectiveness as a wolf pack. And similarly for humans, our morality sort of emerges through competition and play even. There are these implicit rules that come into place based on how we're organizing ourselves over time. With money, it's interesting because most tools we would consider to be amoral, as in a hammer can be used to build a house, which could be seen to be good, like a good constructive purpose or could be used to bash someone's skull, which could be something evil. And that the tool itself is amoral, doesn't have any independent morality of its own. All of the morality is associated with the wielder of the tool. So what's the quote? Like any tool can be a weapon if you hold it right sort of thing. But money's maybe a little bit different in that when you monopolize money, it's only useful as a tool for one thing. And that's for allocating wealth away from some and to others. So it is the only utility of monopolize money is theft. There's no other, you know, there's a lot of propaganda out there that will say, oh, we need to print money to get out of this disaster or to give to the poor, whatever moralistically camouflaged political aim is being discussed at the base layer of monopolize money is that it's only useful for taking from some and giving to others. So another way to think about this is that money is a paper claim on the savings of society. So it is just a ticket for redeeming savings, which could be time, could be capital, could be knowledge from any market actor in the world. So it's kind of a list of who owns what, if you will, it's a proxy list. If there's one group that can amend that list and others cannot, then they're basically able and incented to modify that list to their own benefit. And that's effectively what a central bank is doing. So a central bank is determining how much money to create. They're also determining who gets to receive that money first. And the first recipients of that money are gonna be the beneficiaries in an inflationary regime. So those that receive the money last are the ones being robbed. Those that receive the money first are the ones that are receiving the stolen proceeds, let's say. And this has a really corrosive effect on social morality because if we consider that people's time horizon, which the Austrians call the time preference, the more short-term thinking you are, the more likely you are to engage in selfish behavior. If you know that it's all over tomorrow, you've been working your whole life to develop this business or create this reputation or whatever your thing is, but you just are given the foreknowledge that tomorrow, it's all gonna end. You're much more likely to go out and just maybe get drunk and party that night because there's no more repercussions, right? Whereas if you know that you're gonna live for a very long time, you're much more likely to plan for the future. And money's very, so we just say that your time horizon's closely related to your morality, right? The longer term thinking you are, the more moral you would tend to behave, the more you would care about long-term relationship building versus going out and getting wasted. And money too impinges very closely on our time preference. And again, time preference is the Austrian term. So low time preference means you're long-term oriented. High time preference means you're short-term oriented, which can be a little trippy for some people because it sounds backwards. But, if your money constantly loses value, you are incentivized to become more short-term oriented. You are handicapped in your ability to plan for the future because your money, which is intended to be, here's another definition of money, as an insurance policy against uncertainty. So no matter what problems you encounter in the world, this money will best help you deal with those problems. When that insurance policy against uncertainty is injected with uncertainty, it's polluted with the uncertainty of inflation, your time horizon shrinks, your ability to plan long-term shrinks. And this impinges on social morality. So there's a great book on this called Honest Money by Gary North. And in that book, he gives the parable of the winemaker. And the winemaker, it's a very important part of the story. And the winemaker, if you just imagine the hypothetical winemaker operating a business in a centrally banked economy, and let's say his central bank just doubled the money supply to quote unquote save the economy, say an increase in money supply from one to $2 trillion. This winemaker that's accustomed to selling wine at $20 a bottle is now faced with basically three choices. And an important point here too, before we get into his three choices are what prices are themselves. Prices are the most visible aspect of any service. So when you increase prices, you're incentivizing your customers to look elsewhere. They're gonna look at your competition. When you decrease prices, you're incentivizing market actors to look closer at your product. You're delivering a solution at a lower price. So this winemaker that's accustomed to selling his wine at a $20 price point, all of a sudden because of his central bank has tripled the money supply. He has three choices. He can either keep selling his bottle at $20 and all of his inputs will increase due to inflation by 50%. So he will lose 50% of his profit margin as a result. So he can choose to eat that loss. He can choose to double the selling price of his bottle of wine from $20 to $40 because all of the price of his inputs doubled. So then he would maintain his profit margin. Or the third one is that he could choose to water down his wine or use inferior ingredients. So he could use cheaper inputs and maintain the output at the same price. So he could basically start selling his customers an inferior product for the same price to preserve his profit margin. Now, again, case number one, it's not very palatable. He doesn't wanna eat the economic loss. Case number two, it's not very good either because he's then incentivizing all of his customers to go shop other winemakers if he doubles his price. So human nature being what it is, trying to get something for nothing, inflation actually seeps into other industries by encouraging producers into option three, which is to deceive your customer in the short run. And again, this would be done initially at the margins. Maybe it's just a few drops of water. Maybe it's just some cheaper grapes. But over time, this inflation is actually inducing producers to weigh their financial wellbeing against their moral integrity. So it's forcing them into this dilemma that would not exist in a free market economy. And as they charge more money for wine that is inferior, the buyers of that wine, also living in a central banked economy, are also getting scammed by not only the inflation, but also the wine. So it becomes this kind of corrosive, contagious moral effect that propagates throughout an economy. And that's why I've argued in a lot of my writing that inflation is this infectious moral cancer on the world. I think it is tied back to a lot of the social strangeness we've seen in modern times, where there seems to be a lot of fake people and a lot of fake businesses and a lot of scams, all of these things. I think it really is rooted in the money. And Bitcoin, as the first money in history that has a 0% terminal inflation rate, or said differently, zero unexpected inflation. There's no theft integrated into Bitcoin. You can only earn it through work or sacrificing resources to obtain it. It is the antidote to this moral cancer that inflation riddles our society with. Again, you're blowing my mind a little bit to think about the ripple effects of inflation, the way it seeps through our interactions. So at the very, the early ripples is the effect that has on the products, on the dilution of the wine. But also it might have ripple effects on the care or the ripple effects on the character, on the behavior of people. That's interesting, artificial creation of scarcity, creating, having effects on society at the social, like the social fabric. Yeah. And I guess you're arguing the morality. It's perverting free market dynamics, which again, we said free markets generate pragmatic truth. So inflation distorts price signals, which means it confuses capital allocation. Yeah. So we're trying to solve problems, but all of a sudden we can't tell if this price increase is a matter of true supply and demand change or a matter of policy change. So it clouds our economic perceptions. It suppresses innovation because now you've exacerbated the boom and bust business cycle. People are gonna overborrow and go into projects that they can't profitably sustain. So then there'll be a huge collapse. So that actually breaks the market's function of generating innovation. And then, yeah, I would argue too that it pollutes our pursuit of virtue, let's say. Maybe it's pushing back, but I don't think so. It's not as clear to me, perhaps because I haven't thought about it deeply, that money is core to life and human interaction because there might be other forces, other fraudulent forces, other things in human nature that are creating these effects as well. So it's clear, I think you're articulating really well that there's these negative effects from inflation. I wonder if there's other undiscovered, not undiscovered, but ones we're not making explicit now, forces that are creating all the things we're seeing now, with, like you said, cancel culture and all those things, but also the negative effects on the quality of products, on the excellence of the creativity and the innovation, all those kinds of things. I wonder if there's other factors. It's kind of, listen, it's compelling to think money's at the core of it all. Like if you fix, I forgot what the phrase was. Fix the money, fix the world. Yeah, fix the money, fix the world. That, again, things that sound good, I'm skeptical of, by nature, so I wonder if there's other things that are beyond money that are somehow deeply integrated into our human nature. Another one related to money is social cohesion itself. So very simple anecdote for this was, the more you increase the inflation rate, social cohesion is inversely proportionate to that. So the extreme example would be hyperinflation, right? Where the money is produced in such excess that it loses all meaning and relevance. So today in Venezuela, there is cash clogging the gutters, clogging the streets, clogging the sewer system, because the cash has lost all relevance. And so anecdotally, we would suspect that, okay, if there's a inverse relationship between inflation and social cohesion, if we could then take inflation to zero, couldn't we theoretically increase social cohesion to its maximum? So another way to say that is, inflation is a de-civilizing force, whereas natural price deflation, which would occur in a hard money economy, where there's either a fixed supply of Bitcoin or relatively scarce supply of gold, for instance, that lays claim to an increasing capital stock of goods and services, prices would naturally decline every year as we became smarter. So the market price becomes a reflection of our collective knowledge. So by letting prices decline naturally over time, we can actually induce civilization. But by trying to force prices higher all the time, via the central bank, we're creating the opposite effect. So we talked a little bit about the Soviet Union and I happened to have lived through the collapse of the Soviet Union. And so what are the factors, the causes in your mind to why the Soviet Union collapsed? So, definitely a multivariate situation. I think there's a lot of factors. One that jumped out to me recently, again from that documentary that I didn't note before, was that at one point Stalin eliminated, I think 75% of his intelligence force, which I think when you're competing with another nation state, and intelligence and covert operations are very integral to your survival, I think that was definitely a shot in the foot. But at a higher level, I would say that capitalism and communism were each resource strategies of the 20th century nation state. And they seem, we commonly consider them to be diametrically opposed, but there's actually a lot of commonality between the two. The difference would be that in Soviet Russia, as we alluded to earlier, they tried to completely replace price signals with this nationalistic faith and devotion. So they removed the economic nerve signal, which coordinated the allocation of capital over time. So this inhibited their ability to generate wealth. Whereas in the United States, we left most markets open to free enterprise. So we honored the integrity of price signals and we allowed people to trade and accumulate wealth. And every market except the market for money, both markets maintained a central bank as we've gotten to. So I think in a really big picture standpoint, that's why capitalism outcompetes communism is because it is able to generate more wealth than communism was, and therefore was able to put financial pressure on the USSR until it reached the point of bankruptcy, essentially. This a similar model, I would argue, is that for the same reasons we saw capitalism outcompete communism, which I think the data that I recall was that the USSR's economy was valued at close to one third of its inputs. So if you just didn't do anything inside the USSR and just sold all the raw materials that were going into it, it would have been worth three times as much as sending the materials in, running it through the efforts and then shipping things back out. It was value destructive versus value creative. And I would argue this is because, again, the centralized computing model versus decentralized computing model, it just became more and more corrupt over time. It got to the point where I think most of the occupations in USSR towards the end were as informants. They were working for the state. Jordan Peterson makes this point too, that at some point it was actually illegal to be sad in Soviet Russia. Because if you were sad, you were contradicting the utopian view of the state. So if you were sad, you're implying the state's not doing something wrong. But by the way, this does remind me, what, do you know what Jordan Peterson thinks about Bitcoin and about the future impact of Bitcoin on the society? Are you excited about this meeting? No, I don't actually. We're hopefully gonna be talking to him soon about that. We did a book club on his book, Maps of Meaning, and he engaged with us about it. So we're hoping to deliver the orange pill to Mr. Peterson. The orange pill. I think his audience is one of the most important audiences in the world to understand Bitcoin. These people that are conscientious and responsible. I think they'll quickly understand Bitcoin's value proposition and help elucidate it to the world. I'm trying to remember what he said about it. Basically, I think his support of Bitcoin is grounded in the kind of people who are opposing Bitcoin. So without understanding Bitcoin, he starts to like Bitcoin because of the people who are opposing it. You start to, I mean, that's partially why I am interested in Bitcoin. It's like all the people in power and all the kind of shady, fraudulent, and non-genuine people who are dismissing Bitcoin are making me think, hmm. One of Jordan's definitions of God is, he says God is found in the truthful speech that rectifies pathological hierarchies. And I think that is a beautiful definition of what Bitcoin is doing in the world and that we have this pathological hierarchy called central banking by which the rich get richer and the poor get poorer. That is used as a mechanism for perpetual theft and funding warfare at a global scale. Like Ron Paul said, it's no coincidence that the 20th century of total war was also the century of central banking. When you have an institution of currency counterfeiting, which the central bank is, you are no longer bounded by your own balance sheet when you go to war. You don't have to just go to war on your own resources. You can now pillage the Commonwealth and pull for the savings of society as a whole before you go bankrupt. And indeed, this is what Hitler did, right? Hitler hyperinflated in the Weimar Republic to fund his war efforts. And frankly, every dictator, every world war, every internment camp in history was made possible by the weaponization of money in fiat currency. So I hope, I know Jordan Peterson is a huge proponent of free speech. And I think that's ultimately at its deepest essence, that's what Bitcoin really is, right? It is just the purest form of monetary speech we've ever had. And by purifying that primary operating system of human action, I think we can eliminate this pathological hierarchy that is unfortunately the dominant institution in the world today. Yeah, I'm definitely, especially with these explorations of Bitcoin, this journey I've been on, I'll revisit some of the aspects of human history that I've been looking at, like Stalin and Hitler, with a, from a perspective of, a monetary perspective. Like, what are the effects of inflation? How was it used as a tool in gaining power and maintaining power and manipulating the populace in doing, in inflicting suffering and I would say evil onto the world. It's interesting. It's interesting. I'm gonna have to sort of go back into the whole. So I tend to focus more on the human nature and less about the tools that human nature leverages to effect change. But you're right that in some sense, money is a tool which can be effectively used to perform moral and immoral actions depending on how it's used. And there's a feedback between the two, right? There's, specifically with money itself, it's the, here's the way I've been posing it lately, is that I actually think, we typically think of people as good or bad, or again, trying to label people all the time, but I think people and their characters are emergent properties of the incentive structures they inhabit. So, what does Charlie Munger say? Don't show me the incentives, I'll show you the outcome kind of thing. This is a flawed incentive structure we've been operating within. Now I'm not speaking to the intention. People wanna argue with me all the time, like Jerome Powell's not a bad guy. He's doing his best at the central bank. He's doing what he thinks is right, that's fine. Well, that's true or not, it actually doesn't matter. The intention is divergent from the outcome. The institution that they are running is premised on deception and theft, and it is handicapping the productive economy. So when we're, even the terms we use, printing money, you're not creating any new value. You're not infusing the economy with anything, any new productive factors whatsoever. You're just harvesting the economic surplus created by entrepreneurs in the marketplace. It's impossible to add any value to an economy by increasing the paper claims on its savings. So there's a feedback loop between man and tool, between creator and created. And I think we have to honor the relationship above either one, right? Trying to put the right people in the system or just build the right system, we need both. Do you think the interesting question or whether the people that are in control of central banks or in positions of power there, if they themselves are malevolent, if they themselves are bad actors, or they're simply like leaves floating along the river, sort of just the cog in the machine, an ant, and an ant colony that operates in a certain kind of way. Like where do you put the blame? Do you put the blame on the way things are operating onto the individuals or onto the system itself, the idea behind the system? And is it useful to place the blame somewhere? Because for me, it might be useful to understand that in order to figure out what the solution is. I tend to not put the blame on the individual. Like I tend to believe most people are good and want to see themselves as good. And so in that case, it's very difficult to be truly malevolent as you would need to be to control, to gain centralized power at the large scale. But I know a lot of conspiracy theorists and just a lot of people think that there is evil, humans in the world that seek power, maintain that power, and they use that power for bad purposes. I think they're just people, and they're just trying to get something for nothing like all of us do. I like this framework of thought that you have. Honestly, and that's what the central bank is, is the ultimate institution to get something for nothing. You get a perpetual income stream, the ability to acquire more and more territory in the world through monopolizing the supply of money, and you can literally print money. You can buy your way out of anything and buy your way into anything in the world. So it is, I think, the most, not say the most, but a group of very intelligent people put this thing together and figured out how to get something for nothing in perpetuity by clouding people's conception of money. And if we look at the central bank, it's been around for a while, but the latest implementation here in the US is the Fed. It's about 100 years old. It's an analog age institution that I think has lost a lot of its relevance in the modern age, and I don't think it will survive the ever-galvanizing gaze of the digital age is just too much sunlight, too much transparency today. Ideas move too quickly for something like this to remain relevant. But there are just people. There are just seeking something for nothing, but I think when you concentrate that much power and that much control, that much wealth into the hands of few, it does change. Hayek argued that the nature of power, again, it's something that we all sort of desire. To be completely powerless, you're really unhappy. If you're totally powerless, you're a slave. Someone else tells you what to do. You have no autonomy. It's miserable. So there's this, it makes the consolidation of power alluring and that we want to protect ourselves from that slave state, let's say, but like many things, it can be taken too far. And when you concentrate power into too few hands, Hayek argues that it actually transforms. It becomes something much more intoxicating than it would be if it was held in a more distributed way. And I think that gets into a lot of these, I don't know if they call themselves elites or people call them elites or what, like let's say shareholders of central banks, people participating in the World Economic Forum, things like this. They come, I guess the incentives, right? The incentive schema they're in is rewarding them constantly, telling them everything they're doing, seeing and thinking is correct because they just keep getting richer all the time. And it leads you closer to this definition of evil, which in the book Paradise Lost, Friedman said, evil is the force which believes its knowledge is complete. So these people become more and more convinced that they have the plan or they have the course of action that will save the world, that if everyone would just listen to them, that they would lead us to the promised land, right? Whether this is Bill Gates saving us from a climate crisis or any of these other economic policies that are targeted at a certain outcome, but almost always diverge almost perfectly from that outcome, creating its opposite effect. I think that's the problem, that we have this mechanism that can concentrate wealth and power into the hands of so few, that it leads to the proliferation of evil, meaning that it convinces people that their knowledge is complete. Whereas something like a Bitcoin almost forces the opposite outcome. In a Bitcoin denominated world, a pure free market, the consumer is sovereign. So you cannot earn value in the world unless you are serving your fellow man, unless they have expressed through their buy and sell decisions in the marketplace, right? You've created a satisfaction of a particular want that they value so much, they've acquired so much of your good or service that you've become rich. You can only maintain that position of wealth so long as you continue to serve your fellow man. So it changes the incentive such that dominance in the world is no longer, can no longer be paired with coercion. It has to be paired with competence. And that's how this, when we say Bitcoin fixes this, that's what we mean. Like it restores that skin in the game, that balance of incentives and disincentives that help us properly navigate reality. And it prevents the buildup of systemic rot like we see with the central bank. What books? People love this question. And you're exceptionally well-read. You've explored all kinds of ideas. Is there some books, technical fiction, philosophical, coloring books, children's books, had an impact on your life and you would maybe recommend to others that they should read? I think we mentioned a couple of them here today, but I think a really useful triplet of books that I've been recommending recently to help diffuse this materialist worldview of reality where we still think in kind of the Newtonian model that it's atoms and cause and effect. I'd first recommend Jordan Peterson's book, Maps of Meaning, it's a deep dive into mythology and how it's developed over the course of history and how it's reflected both in our social structures and our intra-psychic nature really, and how they come to reflect one another in a way. Like the way we think again, shapes the world and then the way the world is shaped shapes the way we think. That's an excellent book. It's very dense and difficult read. Actually, this trilogy is pretty brutal, probably take you a year to read, hours a day. The second one I mentioned earlier was Human Action by Mises. The ultimate tome on Austrian economics will help explicate this realm of relevance, I think that economics truly is, where again, there are things and then these things become means or ends once we channel our purpose through them. So this realm of non-materialist relevance that I think is really important to grasping economics at a first principles level, I think that book lays it out tremendously. And then the last one would be, I think I mentioned this at the beginning, was that book Lila by Robert Persig, where he's making the case that value is fundamental. And all of these books, they kind of all point to that, actually, they're pointing back to value being the fundamental thing. Values expressed through moral action as being the fundamental substrate of reality. So if you're like me, I grew up quite scientific minded, it'll help diffuse some of that and maybe retrain you to the other side of reality. So you said these books are difficult, maybe you can comment on which aspect is difficult. Is it just the technical nature? Is it the length? Is it the depth of the ideas or how long it takes to integrate them? And more sort of importantly, is there recommendation advice you can give on how to integrate these ideas, how to read, how to learn in this space? Is there from your own life, like how do you enjoy taking in ideas? And this could be for these books, but also in the Bitcoin world and reading a bunch of different ideas written by others, just integrating stuff, or even watching podcasts and all those kinds of things. Yeah, I'm a reader, I love to read. One of the most useful things I've ever done was take a speed reading course. I actually think there's a version of this available on Tim Ferriss' website, it's like a 30 minute speed reading course. It's all about eye movement. Instead of moving your eye continuously line over line, it's more about jumping in your brain. You can train your brain to just absorb words in their totality versus kind of reading word by word. And also not, I haven't fully taken that journey actually, but I remember taking a few steps on that journey, realizing that I'm speaking inside my head. I'm saying the words inside my head and that's actually getting in the way. That's right. So there's a lot of little hacks like that. I may be lazily, I'll have to, now that you mentioned, I'll have to revisit this. But I have convinced myself that I don't need to read faster because that's not ultimately the bottleneck. The bottleneck is in me thinking about stuff. In fact, I like reading really slowly or so I convinced myself. Because ultimately it's not about gaining more information, it's about time spent thinking deeply. But maybe that's just me being very lazy because yes, it's true, it's important to think deeply, but maybe I could speed up the consumption of information. It's fine, I like to be dynamic actually. So usually speed reading initially and that diffused that internal dialogue for me because when I was reading one word at a time, I was having that too. You almost get a feedback in your own head when you're reading the word out loud and it's out in your thoughts. If you're speed reading, you can't do that. You're taking in groups of words at a time so you can't internally verbalize it, I guess. And then I also am really big on annotating, underlining, writing in the margins. I prefer a physical book, but I also read the Kindle a lot because it's just so convenient. Anywhere you're waiting in line or every night before bed, I'm reading my Kindle. And I also advocate rereading a lot. So if you found something that struck you at a deep level you found particularly fascinating, you have to listen to that. That's your, I don't know, your mind or your spirit signal that that is something meaningful to you and you should, to your point, reread it, sit with it for a long time, write about it. And that becomes the ultimate triumvirate of synthesizing an idea, actually. If you can read about it and then write about it and then go and talk about it, you get this crystallization of understanding that's just not possible doing any one of the three or any two of the three. So I definitely highly recommend people to do that. And in terms of how are those books difficult? I mean, in every way, they're all long books. In terms of density, I would say Lila is the least dense, maybe Maps of Meaning. I don't know, but Maps of Meaning and Human Action are both extremely dense. But they're just, I had to read those books very slow. You just have to take your time with them. To give you an idea with Jordan Peterson, he's said this a lot with Maps of Meaning. He spent three hours a day writing for 15 years to write that book. It's probably, I think it's a 600 page book. He said he estimates he rewrote every sentence in the book 50 times, five zero, to try and get it just perfected. And when you read these sentences, you can tell that he rewrote it 50 times. I've used actually Anki for space repetition. It's like a piece of, it's an app. I'm not sure if you're familiar with it, but it allows you to load in facts or terms or entire paragraphs. And then it brings them, you review them every day and then it brings them up less and less often over time as you show yourself being able to remember the thing that you wanted to memorize. And oftentimes when I'm reading, what I want to memorize is the key idea. But also like I use it for, I'm terrible with names. So I'm starting to use it for names too, names of people, names of like people that I wanna remember. And also throughout history and also my personal life, but also events. Dates to me are usually not important, but sometimes dates are really important. And so it's really useful. I recommend highly. Naval, I think mentioned a piece of software called a read wise or something like that, that I hope I'm saying that correctly. It's something like that. And what it does is it goes to your highlights from your Kindle or the various places where you highlight stuff that integrates with good reads. And it does the same kind of space repetition, but for things you've highlighted. So it sends an email every day. And it's been really, I recommend it highly because it sends like to me an email form, a selection of the things I've highlighted and previous things I've read. And it's like this weird like shock to your memory that sprinkles like I'll have a way, probably way too much Orwell in there. And it just kind of like, it brings you back. And these ideas are, because what you realize, depending on how you highlight, but at least for me, and I think it's probably true for a lot of people, the things you've highlighted had at that moment and like an emotional impact on you. And so like these things are just like hitting you hard again, it's like, whoa, it might not be meaningful to anyone else except you. And it's something I recommend. You never know with these like hacks or tools and so on, like what's actually BS and what is amazing. And that one is kind of amazing. So at least for me, it works for me and Naval. I think he's the one. Read wise, you said. Read wise or something close to that. It could be read something else, like read wealth or something. The one other thing I really like, and this is more of a new one is I used to always listen to music at the gym, but now I've just, cause I'm so backlogged on podcasts, right? There's just, there's so many. I exclusively listen to podcasts when I'm walking or when I'm at the gym, anytime I'm doing something that I can't read basically. And I think there's something really special about exercise and ideation. I mean, I don't know if this happens to everyone, but my creative juices just go ballistic. When I'm at the gym, like I hit a certain point of I guess heart rate and you're sweating enough that the ideas just start to flow. So I'm basically at the gym now listening to podcasts, exercises as fast as I can to try to get to that state of, you know, where you're just straining, you're strenuous exercise, I guess you would say. And then I'm end up typing notes into my phone as fast as I can with all these ideas that are flowing. So I've created a lot of good writing out of that. Yeah, it's kind of work. So I do running quite a bit. So running outside and I'll listen to, I've been, okay, I told myself this has been going on for about a year is I only listen like the stuff that's either World War II or World War I related. So Hitler, Stalin, like difficult historical stuff and also listen to brown noise. So those are the two modes. So brown noise helps me, this is like white noise, but like deeper, I guess, it helps me remove the world. At the gym, there's a lot of distractions. When you're running, there's a lot of distractions. It helps me remove the world. So one, I'll be listening to difficult historical ideas. And then when my mind is all of a sudden starting to generate ideas, I'll listen to brown noise and then force myself to think. It's kind of, it's meditative in a sense. And your mind wants to be lazy. You want to, it's hard, man, like running and thinking in the sense that some of the ideas that come into your head are pretty heavy. It's about your own life, your own demons come in there, but also just difficult ideas that require you thinking through and persevering through that, like not letting yourself get lazy and like thinking through it has been really, for me, rewarding in the same way that you're saying it is for you. It's true that like podcasts and music, like shallow, like funny podcasts or music have been a kind of filler distraction, but informational podcasts, like podcasts that have some depths of ideas or audio books have been truly rewarding. I try to listen now less and less to podcasts that are just fun, because I feel like I enjoy it too much and I don't allow my mind to get bored and to think through stuff, to explore ideas. It's so easy to fill the space that usually would be filled with thought and instead fill it with fun podcasts. There's a bunch of comedy podcasts I really enjoy. So there's value to that, of course, but you have to realize it's entertainment. You don't get much value except entertainment. And there's utility to the boredom too, I think, or to give your mind the space, I guess your subconscious maybe the space to chew on some of these problems, where you've imbibed so much knowledge, you've highlighted and thought about something, but then you need to stop thinking about it for a while and let it marinate in the subconscious. And then these flashes of insight that people have described, sometimes I get them in the middle of the night, like I just wake up from a dream and have them and I gotta write it down, or sometimes it's in nature taking a walk. But I think that's very important too. We can't just brute force our way into understanding. There's this interplay between kind of the brute force reading intake and then just relaxing, meditating, sleeping, being bored, letting your subconscious do the heavy lifting. And there's, you should be aware of the fact that there's a war for your attention going on. So there's a lot of, there's been better and better and better mechanisms that are designed to steal your attention. So I kind of see it as a war zone between my right for boredom and the internet wanting your attention. In fact, Clubhouse as an app has been, I'm probably not gonna use Clubhouse much anymore. There's some aspect of my own inner loneliness and whatever it is that pulled me into Clubhouse a little bit too much to where it robbed me from that lonely time alone where I sit and listen to Bruce Springsteen and think about life. So I wanna- That's way more important. It's way, well, yeah, at least it's all in balance because there is a Clubhouse like a lot of these social networks when you use right can be a way to discover new ideas, new people. But the boredom and just being alone with your thoughts is priceless. Absolutely. And you gotta know yourself, right? It took me a long time to realize I need solitude. Yeah. Like just how I'm wired, how I'm built. I need like an hour a day solitude. So you gotta listen to that part of yourself. You might be compromising something like that where you feel like you always need to be with your girlfriend or whatever it may be. But I would suggest listening to that voice. Yeah, I tried to remember things that made me feel good over time. Like long-term had positive impact and long-term had negative impact and do more of the former and less of the latter. We don't often think like that. You know, we talked offline about like carnivore diets, for example. I try to remember that carbs don't make me feel good. Yeah, that's what- In the moment it's hard to remember that. It's hard. But you have to remember that that's the case. And in the same way, exercise, it's hard to remember that exercise makes me feel good. Like- Especially when it's time to go to the gym. Especially when it's time to go to the gym. But you should remember that because the kind of person you are without exercise, for me, just like you beautifully said, that you have to know yourself. The kind of person I am without exercise is a less good person. A person I'm less proud of. The food thing is so hard, by the way. I still, you know, I can't tell you how many times I've learned the lesson, like don't eat that. But then, you know, you go a few weeks of not eating whatever that is and you're feeling good. And then you're, I don't know, something creeps up inside you like, ah, you could just have one or you just do this. But for me, it's sugar. Like sugar just makes me feel terrible. But always, not always, but if it's been a long time, I start to make that exception in my mind. Like, oh, you can have a little bit. And then I eat it and I feel terrible. So I don't know how many times I've done that dance, but it's not cool. Well, it depends on how painful it is and then you learn the lesson. I actually embraced the fact that I'll never learn the lesson with vodka. Every time I drink, especially with Russians, is like, I quit drinking every time. And then I forget, there's like a slow drop off. It'll be like two weeks and then. Nostrovia. Nostrovia. Very good. So it never makes me feel good. It never results in anything good. Except the beautiful social chaos, which is ultimately somehow, there's value to chaos too. You know, there's value to that. Whatever the hell stupid stuff you do when you get trashed, the over the top emotion of love usually or whatever, camaraderie, there's value to that too. Like as I get older, I realize, cause the world, sometimes especially when you get older and the world wants you to be an adult, in order to maintain the youthful spirit, you have to use all the tools you can. Alcohol is one of them. To do all the stupid shit you can, even if you're like getting older. To lower the inhibitions and. Lower the inhibitions. Against that taste of uncertainty that is the sweetness of life, right? To be able to go out and be a fluner at a party and not really know what you're gonna do. And it's, we have this draw to the wild side of life. As much as we try and build up order around ourselves, I think there's always gonna be an appetite for that. I've always, most of my life, I've always been a social drinker, but actually gave up alcohol a year ago. And I would add that to the idea, the repertoire for dealing with bigger ideas. Because alcohol is fun. It's a good times. It can be analgesic. It can do all of it. It can give you all of these benefits if you use the right amounts. But I got to the point personally where I was trying to wrestle with these ideas that are just so much bigger than me. That I, and I have this backlog of books that was growing faster than I could read them. That I just reached a point where I decided I wanted to start making sacrifices toward attaining that. And alcohol was just an easy one. It's you spend, even if you just drink socially on the weekends, you're probably spending five to 10 hours drinking, and then maybe another, what? Five to 10 hours recovering perhaps on the day after. So it was a difficult transition initially, but once you get through a couple of months, I feel amazing without it. I sleep better than ever. My workouts are better than ever. I'm sharper than ever. I'm more lucid. So I'm not trying to be a proponent for not drinking, but I just want to say. But you're a proponent for sacrifice in some. I am a big proponent for sacrifice, yes. Is there advice you would give to a young person today curious about Bitcoin, curious about how they succeed in the world or both career-wise and just in life in general? I mean, the strongest piece of advice I have for, this is beyond just Bitcoin. This is you managing your own personal and financial affairs is that you need to invest in knowledge first. It's not good enough to just follow the crowd and buy a 60-40 portfolio and put it in a Roth IRA and plan on social security. I mean, the world's changing much faster than any existing institution is going to be able to keep up with. So that's why I named the show the question, what is money? Like I think that to me is the rabbit that took me down the rabbit hole. It's like just asking that question naturally progressed to these other questions. Like what is value? What is government? What is the purpose of society? Speech, all of these things. So I would encourage people to arm yourself with knowledge and study. And like that, a lot of financial people always give you a line of advice and then say, this is not financial advice. Or like, this is financial advice. Like study, study, learn. Knowledge is power. Yeah. This is official financial advice. And you're exercising your divine trait, which is the logos, right? That we are these animals that can tell and believe stories. So it's our, it feels like almost a sacred duty to really sharpen that part of ourselves and use it to create the best world possible. And then, you know, the second one was the, I think health and fitness stuff. I was, maybe everyone does this in their 20s. They just live a little fast and beat themselves up. Not that I wasn't like I was living well and, you know, successful by a lot of measures, but I wish I had maybe gotten my act together a little bit sooner. I just think- Health-wise, morality-wise. Yeah, drinking, I think morality and eating. You know, I just was kind of doing whatever I wanted in some ways, let's say. Is there a value to a trajectory that includes a lot of mistakes? So maybe you're supposed to make the mistakes in your 20s. That's a great point. Maybe the 20s are all about the mistakes. Accumulate the most mistakes possible. Yeah, I don't- As quickly as possible. I don't regret any of it, but now that I'm kind of in this place where I feel good and I know the value of a good night's sleep and just, I've more deeply explored my own potential that I feel maybe a little regretful that I didn't do this earlier is all I'm saying. So maybe just exploring different sides of yourself, right? See what it's like to go and make a bunch of mistakes and be wild and crazy, and then maybe try to walk the straight and narrow for a few months and just see what it's like. There's probably a guy doing vodka shots right now, listening to this podcast with his buddies, and if you are, please take a shot for us for all the mistakes you should make in your 20s. And what about love? We talked about money is ultimately a mechanism by which you can pave a moral path through life. To me, one of the purest expressions that is love, broadly defined for a family, for others, for knowledge, for the world, is basically an optimistic open view to the world that embraces all that is beautiful about this world. So do you think about love often in a personal sense, romantic family, friendship, and in the broad sense about its value in a successful life? Yeah, of course. I'm blessed to have a two and a half year old daughter, and love is a word we throw around. I love these potato chips, I love you, man. I love you, my daughter. It's got so many different intensities, I guess you might say, but. I don't know, my intuition is that it is something very fundamental to the universe. Again, I know words unto it justice, but if we just proxy love with selfless action, the whole damn universe is selflessly acting, right? It's just unfolding. It may sound a bit hippie dippy, but my intuition is just that love is the core of it somehow. I don't have anything to back that up really. It's just. In the way you're framing it, it's making me think that love, we talked about sort of meditation, is as opposed to thinking from an egocentric perspective of you, the individual operating in this world, is allowing you to be empathetic towards the world and thereby think of the universe, think of the world acting through you. Almost like accepting this notion that ideas have you, you don't have ideas. That you're not existing in the universe, the universe is existing through you. It's sort of like, that's what selfless in that context means, is like embracing that thought. That's a weird thought. It's a weird thought that we're just here for a little bit of time. These meat vehicles, receptacles, and this much bigger thing is just using us, not in a malevolent way, but just like a river flows, is using us to create more and more beautiful things. Yes, yes, more and more beautiful things. We are the universe experiencing itself, frankly, right? So- That's a trippy thought, man. Yeah. That in some sense, the universe created us to experience itself. And we are one of the highest forms of beauty that nature has created, right? If we just think one of the most complex and adaptive thing, we're a reflection of nature. And another thing that comes to mind here is that Dalio has this quote where he says, truth or more accurately, an accurate depiction of reality is necessary for any good outcome. So when we think that love or value is primary, I think that too reinforces this thesis that acting out of love or acting out of proper moral action you're best reflecting the fundamental nature of reality. Therefore you're best creating the best possible outcomes or the things of the most beauty, whether that's your artistic expression, your children, your business, whatever it is. And Jordan Peterson goes deep into that where you have to listen to that sense of meaning in your life, or you might have some decision on paper that's so great this way, but your heart says no, your heart says otherwise. I've tried to listen to my heart throughout and I think that creates the best outcomes. But nevertheless, does it make you sad that you in particular, Robert, are gonna be dead pretty soon? As we talk about scarcity, one of the certain things that ensure the scarcity of the human experience is the fact that you and your consciousness are gonna be done, they have a deadline. Only time and Bitcoin are absolutely scarce. I'm fortunate, I guess I got started on this philosophical journey a bit when I was younger, but I got into Musashi and Sun Tzu quite a bit, who wrote, Musashi wrote the book of five rings, Sun Tzu wrote the art of war. And one of the things that, I mean, these guys were just absolute beasts, they lived and died by the sword and they were just very great equanimity about all things in life. And I also found this kind of in the stoic philosophy where they just are very cool with everything. And one of the lines there is that the way of the warrior is the resolute acceptance of death. And so I've always tried to think about that. Like, of course I experienced fear, I experienced everything that you do on a meat suit, right? Like anxiety and all the things, but I always try to have that higher order view of myself and that it's just a certain experience occurring at a certain level, but it shouldn't override your kind of highest order self. That's just resolutely accepted death and that this is your one play in life. So hopefully that propels me towards proper action. I think scarcity cannot help but lead to something good. Just like with this conversation, sadly must come to an end. The scarcity of it is what makes it beautiful. So Robert, this was one of my favorite conversations philosophically and in every other level, just the ideas and the way you express them around Bitcoin, around morality, around money has been really inspiring and really educational and I'm glad you're out there fighting the good fight. And I'm glad you wasting all of this time with me. It was really fun and thank you for coming down to Texas and having some good old brisket together. This was really fun, man. This was awesome, Lex. Thanks for having me, man. Thanks for listening to this conversation with Robert Breedlove and thank you to Fundrise, Element, Monkpack, and BetterHelp. Check them out in the description to support this podcast. And now let me leave you with some words from Nassim Nicholas Taleb. Anti-fragility is beyond resilience and robustness. The resilient resists shocks and stay the same. The anti-fragile gets better. Thank you for listening and hope to see you next time.
 The following is a conversation with Robert Breedlove,
 someone who caught my attention
 and was recommended highly as a rigorous scholar
 and thinker in the space of decentralized finance
 and Bitcoin.
 His podcast titled, What Is Money,
 is a good representation of the way his mind works.
 He's willing to talk through ideas for many hours,
 willing to listen, willing to think,
 which makes him a great companion in conversation
 to explore the history, philosophy and future of money.
 Quick mention of our sponsors,
 Fundrise, Element, MonkPak and BetterHelp.
 Check them out in the description to support this podcast.
 As a side note, let me say that I'll have
 a number of conversations in the coming months
 on Bitcoin and other cryptocurrencies.
 None of these conversations are financial advice.
 That's not a legal warning.
 That's a genuine description of my goals
 and approach with these chats.
 At least for a while, I personally won't actively invest
 in Bitcoin or any other cryptocurrencies,
 except to learn about the technology itself.
 I don't think this should be a journalistic standard
 like the New York Times trying to establish,
 which I very much disagree with.
 In my humble opinion, I think journalists should be free
 to invest in Bitcoin if they want to.
 Luckily, I'm not a journalist.
 I just know my own psychology
 and I feel that my thinking will be muddled by excitement
 if I invest before I understand.
 I feel the same way about Tesla, for example.
 I still don't own any Tesla stock
 and I am still indeed fascinated by Tesla autopilot
 as an artificial intelligence system.
 I work hard to be cognizant of the biases
 that arise in my mind and always try to choose the path
 that maximizes or maintains a freedom of thought
 as much as possible.
 Also, let me say that I try to be very careful
 in selecting guests based not only on the contents
 of their ideas, but the richness, complexity, music,
 style of their mind and character.
 Yes, I will talk with people with whom you
 and I may disagree, people who some may call bad
 or even evil human beings.
 I want to understand them because I believe that,
 as Sol Janitzen said, the battle line between good
 and evil runs through the heart of every man.
 I think if you always run from evil,
 you become blind to the truth of human nature.
 This is the Lex Friedman podcast
 and here is my conversation with Robert Breedlove.
 Rousseau opens his 1762 book, The Social Contract,
 with the following statement.
 "'Man is born free and everywhere he is in chains.'"
 So you talk about freedom and sovereignty quite a bit.
 What do these ideas mean to you, the idea of sovereignty?
 Freedom and sovereignty, I think they're very closely related.
 When we start just focusing on sovereignty,
 which is a word I don't think we talk about enough,
 and the general definition of that I would give
 is the authority to act as you see fit.
 And it's a word that's etymologically associated
 with words like monarchy, money, reign.
 So historically, it's referred to whatever the locus
 of supreme power is in the sphere of human action.
 So whether if you go back into ancient Egypt,
 the pharaoh had absolute sovereignty
 and everyone else was pretty much operating
 according to his interest.
 You fast forward to today, modern Western democracy,
 we have more decentralized sovereignty
 in that we all get to go vote and elect officials
 that make decisions on our behalf.
 So the theme of sovereignty across history
 is that it's been gradually decentralizing
 across our different models of socioeconomics.
 And it's largely, you can say it's rooted heavily
 in the money, I would argue,
 which is something we'll get a lot into here,
 where if you have money, you have the authority
 to act as you see fit in the world.
 And even in our current political sphere,
 if you have enough money, you can actually reshape the rules.
 You can reshape laws, you can lobby Congress.
 If you're in a certain situation like many billionaires,
 you can negotiate your own tax treaty,
 such that you can get favorable tax treatment
 with certain jurisdictions in the world.
 So this concept of sovereignty,
 which today we call, it's common to call states
 or nation states or government sovereign,
 meaning that they have power over people.
 But as I argue in a lot of my writing,
 I actually think that sovereignty
 and here's within the individual
 and that we each have our own interiorized space of choice,
 which is something like Viktor Frankl
 called the final human freedom.
 And that we, no matter what our circumstances are,
 no matter what exogenous situation we face,
 we always have this endogenous power
 to choose how we respond to it.
 That's one of my favorite books is Man's Search for Meaning.
 Maybe we can break that apart a little bit.
 So you've kind of spoken about sovereignty
 as closely linked to power,
 but is there something about your own mind
 being able to achieve sovereignty
 no matter what the monetary system is,
 no matter what, who has the control over centralized power,
 the money or whatever the mechanisms of sovereignty
 and the societal level, you as an individual,
 isn't ultimately all boiled down to
 what you can do with your mind, how you see the world?
 Yes. I agree.
 And as we get a little bit deeper into this,
 I think we'll come to see money
 as an extension of your mind.
 So there's a feedback between money and mind.
 For instance, you think in dollars today,
 almost guarantee it, most of us do here in the US.
 And it's a tool, right?
 It's a tool we're using to decomplexify the world around us
 to deal with it, to understand the sacrifices and successes
 across an entire history of economic transactions.
 We can boil that all down to the price.
 So it's data compression.
 And if you can change, if there's a central body
 or central governance mechanism
 that can manipulate that money,
 it can have an impact on your mind.
 For instance, today, so I agree with you on the firsthand,
 say that I do believe in free will,
 I do believe in individual autonomy,
 but I also think that there are certain devices and powers
 in the world around us
 that can actually influence how we think.
 And it's fascinating to think about the fact
 that money might be actually deeply integrated
 into the way we think and into our mind.
 Like this is, you think about what are the core aspects
 of the human mind?
 What influences cognition,
 the way you reason about the world?
 You have the Chomsky like languages
 at the core of everything.
 But you're kind of placing money as pretty close
 to the core of what it means to be
 an intelligent reasoning human.
 I think money is a direct derivation
 of action and speech actually.
 It's another expression of the logos.
 If we even think of what it means to think
 is that we are generating two different courses of action,
 potential courses of action,
 and we're populating them with avatars, right?
 Maybe ourself or others,
 and then we're comparing how we may act in each situation
 and what we think the result would be.
 So actually it's comparison,
 basically it's comparison and contrasting of possible
 courses of action.
 And that's the same thing with words themselves.
 Like, most words, the vast majority of words
 only have meaning in relationship to other words, right?
 It's all contextual definitions of a word or more words.
 Now people have argued with me about this
 because there is a first word, right?
 Where you pick up rock and say rock.
 But most other words and much in higher abstraction
 tend to be relative.
 And what's funny about action and speech,
 and this gets, I got into a bit of this in our paper here,
 is that it's linked to evolutionary biology.
 And that once human beings adopted upright stance,
 we freed our hands,
 we no longer needed our hands for locomotion.
 So we started to evolve more dexterity,
 and notably we have opposable thumb.
 So this gives us an ability to manipulate
 and particularize the environment
 in a way that most other animals cannot.
 And what's interesting about this is that
 as we gain this ability to manipulate natural resources
 and count, point, pointing was a big deal
 and that we could indicate prey or items
 that are far off distance and we could organize ourselves.
 We, at the same time, we co-evolved this fine musculature
 in the face and tongue.
 So it's as if speech developed,
 co-evolved really with our dexterity.
 And as a natural extension of that came us making tools.
 Right, we started to create things
 to better satisfy our wants over time.
 And the most tradable tool in any society
 or the most tradable thing is money.
 So I really, I argue that action and speech
 are quintessential modes of self-sovereign expression.
 And the money is just sort of a tech layer
 we've put right on top of that.
 And that it's a natural derivation of action and speech.
 Okay, that's fascinating to think about sovereignty
 from the evolutionary perspective.
 And then ultimately money is the technology layer
 that enables sovereignty.
 So, you know, it's really fascinating to think about
 our modern human society as deeply rooted
 in these like evolutionary roots
 from the very origins of life on earth.
 So what, you know, some of the ideas you just mentioned,
 what do you see are some interesting characteristics
 of just life on earth that propagated to us humans?
 Like what ideas propagated to have roots in evolution?
 Yeah, I think one of the deepest impulsions in life
 is the territorial imperative.
 So all life is seeking to expand its dominion
 over space and time.
 And we think about, you know, again, physically with space,
 it's advantageous to an animal or an organism
 to have more territory under its control to raise offspring.
 So it's all about reproductive fitness
 at the end of the day.
 And then we'd also think of reproduction itself
 as the genetic impulse to have more,
 to replicate oneself across time.
 So it's territoriality across time in a way.
 And this is very common in most animals.
 Not all animals are territorial, but many are.
 And you see very interesting behaviors
 resulting from territoriality.
 This is like animal combat, you know,
 the reason birds sing is territoriality,
 a number of other things.
 And it's my hypothesis,
 and others have shared this hypothesis as well,
 that mankind is clearly, I think,
 would argue a territorial species,
 and that he expresses this territoriality
 in property rights.
 So property, when that word, we hear that word,
 we typically think of an asset.
 We think of, oh, this house or this stock or whatever.
 But property is actually the socially acknowledged
 relationship between a human and an asset,
 such that you have exclusive rights and responsibilities
 to a particular asset.
 It is not the asset itself.
 So property, it's information, it's a relationship.
 By the way, my mind was just blown.
 Property is information, it's not the actual asset.
 That's really important.
 Very important.
 That's really interesting.
 Yeah, and then it comes down to,
 how do we organize ourselves such that property,
 that the contributions people are making
 are commensurate with the consideration they're receiving?
 So if you're adding value to a piece of property,
 you're developing a piece of land for use,
 in theory, to be fair, you should have the rights
 to that fruit, right?
 If you go out and plant a garden or whatever it may be.
 And this is rooted in natural law,
 where we have rights to life, liberty and property.
 Those are kind of just the base,
 the fundamental layer of morality and capitalism, frankly.
 And you could think of, to get really primordial with it,
 the first capitalist in the world,
 just to kind of get some definitions out here,
 I'll say capitalism versus communism or socialism,
 as the spectrum I'll speak on.
 The first capitalist in the world would be the guy,
 the caveman, that maybe dug a little hole for himself
 to shield himself from the elements.
 Maybe there was a rainstorm or snowstorm
 and he dug a little enclave and he protected himself.
 I thought you were gonna go,
 because you said primordial,
 I thought you were gonna go back
 to earlier biological systems.
 I guess primordial for human, perhaps.
 For humans, yeah.
 Okay.
 And then the first communist or socialist
 would be someone that decided the fruits of his labor
 belonged to him.
 So he would have violently encroached on that individual
 and taken his plot for himself, for his own use.
 And that's the spectrum across which capitalism
 in the pure sense and communism in the pure sense operate,
 in that capitalism, each individual has the exclusive rights
 to the fruits of their labor.
 So anything they spend their time, effort, energy,
 creating in the world, they own the rights to that
 and they can trade those rights with others,
 other self-owned people that have done similar things.
 Communism or socialism would imply that other people,
 typically the state, have the rights,
 at least some rights to the value you've created.
 So there's this interesting moment
 when that first caveman, that first capitalist,
 drew a line, a circle in this cave and said,
 this is mine.
 You could say it was free to be claimed
 at the time he claimed it.
 Yeah.
 But it's an interesting moment when asset becomes an asset.
 When space-time, as you were referring to,
 it becomes something that's now,
 can be possessed by a human being.
 Is there something special about this moment?
 Because it feels like, first of all,
 in terms of space and time,
 it feels like there's a lot of available space-time
 yet to be claimed.
 So if we just look at the universe, right?
 We're talking about,
 there's a funny thing with Elon Musk and Mars.
 I think they sneaked in there for SpaceX
 that nobody on Earth has any authority on Mars or any.
 This is a very interesting question.
 It seems almost humorous at this time, but perhaps not.
 Perhaps there'll be sections of space,
 not just on planets, that are gonna be even fought over.
 So is there something special about this moment?
 Because in discussing sort of violence
 and respect for property,
 it feels like this is a special moment.
 Because ultimately conflict arises when you make claims
 on a particular territory.
 It's not always in conflict where people say,
 when you look at Hitler or something, for example,
 his claim would be in many of the lands
 that he attacked and invaded,
 that this has always belonged to Germany.
 So is there something you could say
 as to what it means to own an asset or a property?
 Yeah, so in the ancient days of hunters and gatherers,
 we could say that property was mostly a loydeal title,
 which meant it's just whatever you can defend.
 All right, so if you've got knives and daggers and satchels
 and maybe some pelts you've hunted,
 whatever you can hold and defend is yours.
 And there's not like there's a government to appeal to.
 You're just sort of a free agent operating in the wild,
 defending the assets you can protect on you more or less.
 And what really changed the nature of property
 is when we get into the agricultural age.
 So there's a big flip where we went from just foraging
 and hunting all the time, constantly moving,
 trying to stay alive to deciding we're gonna settle here.
 We figured out how to cultivate crops.
 We can increase the population
 because we can harvest more energy from the sun
 and we can establish a longer term civilization.
 What happens in that transition
 is that we begin creating economic surplus.
 So for the first time in history,
 we have grain, stock houses of grain to defend
 or maybe meat or cattle
 or whatever it is we're creating, we now have savings.
 And it's at that time when government emerges as well
 because once you have savings
 or you have an economic surplus,
 you have something that other people want to steal.
 This one thing we'll touch on a lot today
 is people always want something for nothing.
 People are always seeking the path
 to get something for nothing.
 And I think that drives a lot of our decision-making
 and actually encourages us to be innovative
 in a lot of ways.
 We're trying to, you could say it's our laziness
 that's helping us be inventive in a way.
 We're trying to accomplish greater results
 with less efforts over time,
 but we can cross that line
 in seeking something for nothing
 where we start to violate the life, liberty
 and property of others.
 And that's where we shift from kind of capitalistic society
 to something more communistic.
 And so that's what government is.
 It's a protection producing enterprise
 for the economic surplus generated by a trading society.
 So when people begin to trade,
 they create what's called the division of labor,
 which is a very common economics term,
 basically means you're better at making hats,
 I'm better at making boots.
 If you and I, you specialize in hats,
 I specialize in boots and we trade,
 we've created a positive sum game
 where you and I both benefit.
 So we become collectively more than the sum of our parts
 through trade.
 And that's why human beings do trade
 because we become more energy efficient as a result.
 We create more outputs per unit of input.
 And you can think of government in that respect,
 if we're looking at it, maybe in a tech sense,
 that the economy is the trade network that generates wealth,
 generates innovation, generates all this whole lap
 of luxury we live in today
 that we've inherited from our forebears is from the market.
 It's not from a government.
 The government is the network security, if you will.
 So we're paying expenses to a vendor to protect peace,
 to preserve life, liberty and property in that network
 so that we can have,
 when there's inevitably disputes over private property,
 we can have nonviolent dispute resolution in the rule of law
 and we can have a reasonable expectation
 of being able to conduct commerce without violence.
 The problem has been that the protector tends to,
 they're in a monopolistic position, we would say,
 they tend to start abusing that position
 to obtain property for themselves.
 Again, trying to get that something for nothing.
 When you control, you are the security guard
 for the economy.
 The first thing they tend to monopolize is money.
 Because if you can control the money,
 you're effectively controlling people, their energy,
 their perceptions.
 And that becomes a, particularly through inflation,
 becomes an avenue to get something for nothing.
 And that you can just print more money
 that everyone else is forced to sacrifice their time
 and energy to obtain.
 What are your thoughts about anarchism?
 So I talked quite a bit, he'll be here in a few days,
 actually, Michael Malice, about ideas of anarchy.
 And his idea, or the idea of anarchists,
 is that any amount of government will eventually become
 the very kind of thing that you're referring to.
 So there's almost no way to have a government
 that doesn't then try to monopolize power, money,
 and all those kinds of things.
 Do you think it's possible to have a government
 sort of on that spectrum of like,
 anarchy, maybe libertarianism,
 I'm not sure how exactly the spectrum goes,
 but where you have a small government
 that protects the liberty and property rights
 and those kinds of things,
 and doesn't expand to then also control
 the monetary system and all those other things.
 Is it possible?
 Agreed completely.
 It was not possible until Satoshi Nakamoto.
 So for the first time in history,
 we have a money that cannot be monopolized,
 cannot be corrupted, cannot be changed,
 cannot be weaponized, frankly.
 Our current monetary system is weaponized
 by those who can print money against those who cannot.
 And I think when you have,
 at the heart of every modern economy,
 which even we could say the US,
 we pride ourselves as free market capitalist.
 We out competed communism in the 20th century.
 We think that this is the superior model.
 Most business people will tell you that the free market
 is the best allocator of resources, all of these things.
 But what we have at the heart of every modern economy,
 including the US, is an anti-capitalistic institution,
 which is the central bank.
 The temptation to monopolize money throughout all of history
 has been too strong for anyone to resist.
 So any even benevolent, quote unquote,
 dictators that have taken over,
 many dictators have inherited say an inflationary regime
 where society is coming apart
 because someone was clipping the coin,
 there's someone who's printing too much money,
 and they'll commit to going back to a hard money standard.
 So they'll keep society on a gold standard, for instance,
 such that they cannot violate the money
 to benefit themselves.
 But inevitably over time,
 because it is a political institution,
 there's an incentive there, right,
 for again, to get something for nothing,
 to spend more than you're making through tax revenues.
 And with that incentive,
 people typically ultimately end up pursuing
 that inflationary path.
 So we can get deeper into that about,
 inflation is a term that we've been conditioned
 to think today is just something normal,
 the prices just go up,
 and then it's pertinent to a healthy economy,
 but it's actually,
 if you look at it from real first principles,
 it is just theft integrated into the money.
 It's a technology backdoor,
 is another way to think about it.
 You wouldn't buy a cell phone
 knowing that someone could siphon your data
 off of your private calls and sell it into the market.
 Now I know we do that with a lot of social media stuff today
 and that's something else we can get into,
 but you wouldn't do it willingly, right?
 You would prefer that your cell phone
 and your data was monetized by you,
 or if you're gonna sell it,
 you would be able to selectively sell it.
 Inflation is that it's similar, it's a tech backdoor.
 So it's a money that only a few people
 can siphon value off of surreptitiously,
 typically slowly, but eventually,
 as we've seen throughout history,
 that slowly builds up into a rapidly
 and then causes the monetary system to collapse.
 Do you think there's a benefit to inflation?
 Possibly so.
 So when you have perfect information,
 perhaps you don't need inflation,
 perhaps it is purely theft,
 but I think of inflation as like
 the snooze button on the alarm.
 So if you have a hard standard,
 you better wake up when the alarm rings.
 But all of us kind of like probably shouldn't,
 but use the snooze button.
 It's like, okay, well, five more minutes,
 or 10 more minutes.
 And then you're saying there's naturally a slippery slope
 where it becomes a drug
 that you fall in love with in your abuse.
 But nevertheless, the usefulness of the snooze button
 is that you don't know how you'll be actually feeling
 when the alarm rings.
 You might be able to ready to pop up,
 or you might be like,
 you really need those few more minutes
 to psychologically get yourself out of bed.
 This metaphor is just not working at all.
 But do you think there's a use to inflation sometimes
 from like an economics perspective?
 I think the drug metaphor is a little more apt
 in that inflation does provide
 an immediately stimulative effect when used early on.
 But what it's doing is it's,
 again, we talk about the balance
 between incentives and disincentives, right?
 That being necessary for a system to function properly.
 With inflation, you're essentially giving
 the people that can print money
 a way to dampen the disincentives they face.
 So it destroys feedback loops, I guess you might say.
 And another way to look at this is when you,
 so using inflation, using quantitative easing,
 you can decrease short-term volatility in the marketplace.
 So the market is basically this idea,
 this form of free exchange
 that's trying to zero in on the best ideas.
 And the ideas are those that are most fit to reality,
 to satisfying the most wants.
 It's gonna overshoot, it's gonna undershoot,
 you have these little business cycles.
 But when it's undershooting
 and you're experiencing a business recession,
 in a capitalist environment,
 the market needs to clear that malinvestment,
 that misallocation of capital.
 That means someone made a bet on a certain idea
 that it would satisfy wants in a particular way,
 and that bet did not pan out.
 If you then paper over the losses that business is creating,
 you're now delaying and exacerbating the volatility
 that that idea created.
 So this is kind of a Taliban concept
 where you can dampen short-run volatility,
 but volatility is truth.
 Volatility is us matching our ideas to reality.
 We're constantly, again, overshooting and undershooting.
 So you delay volatility,
 you're just amplifying it
 and exacerbating it in the long run.
 And that's what central bank is doing.
 The central bank mandate is low unemployment
 and low and expected inflation, basically.
 And so they're trying to achieve economic growth
 in a stable way, quote unquote stable way.
 This is their ostensible purpose.
 And that's just not possible.
 Growth is an inherently instable process.
 Can you elaborate a little bit about
 the nature of volatility?
 Why is it communicating truth?
 That's something that a lot of people are afraid of
 is the volatility.
 Almost like it's a sign of chaos.
 And so they want to escape chaos.
 But you're saying that that's actually,
 whether it's chaos or not, I don't know,
 but it's getting us closer to the fundamental reality
 that we should not be trying to escape.
 Yeah, so if we consider that the universe
 is pervaded by entropy,
 this is the second law of thermodynamics
 is that every closed system
 tends towards greater disorder over time.
 And that life itself,
 again, I would argue expressed through the logos,
 we, life is the anti-entropic principle.
 It's the only thing that's converting entropy into order,
 chaos into order.
 And that's what entrepreneurs are doing, right?
 We're living at the edges of the known
 and we're trying to,
 we're testing ourselves against the entropy of nature,
 trying to figure out new and better ways
 of saying, doing, or making things.
 And then if we do crack a code or figure something out,
 we then have a big incentive,
 the incentive is to get rich, right?
 Because then you have a new idea
 that you could then sell back into the marketplace.
 So it's this sequence of courageously confronting
 the entropy of nature
 and converting it into good and useful order,
 which by the way is like the ancient idea of God and Genesis,
 which I think is interesting,
 that actually enables us to construct civilization
 in these layers of anti-entropy or order, you might say.
 So today we live in a bubble of anti-entropy or order,
 like the coastlines are guarded by the nation
 and the city has a certain police force
 that keeps it in order.
 Even the way we talk, clearly the words matter,
 but also the nonverbal cues,
 all these things are like order that has been established
 over many, many, many thousands of years of human evolution.
 And I think that when I say volatility is truth,
 what I'm saying is that the experience of uncertainty
 is something that's ineradicable from life, right?
 Uncertainty, it's kind of a paradox
 because we're fighting against it, right?
 We're trying to innovate our way away from uncertainty
 to create more capital,
 which capital is very simply a way of mitigating uncertainty.
 So this is why you might have like a stash of food
 in case the power goes out or a generator,
 like it helps you overcome uncertainty over time.
 But uncertainty is also where all the sweetness of life is.
 So there's gotta be this balance
 with one foot in, one foot out.
 So human society is this kind of bubble of order
 that we've constructed and slowly expanding,
 but at the edges, you're always going to have that chaos,
 that volatility, and that the entrepreneurs
 are kind of like jumping into that chaos
 and some of them die and some of them succeed.
 And so like, if you wanna grow this bubble of order,
 you have to be embracing the volatility at the edges.
 Yes.
 And reverence for entrepreneurship,
 because these are the people putting their neck out,
 so to speak, risking themselves,
 and they're gonna contribute to society, by the way,
 whether they go up in flames or not.
 If they go up in flames,
 society has witnessed their experience
 as something not to do or something that doesn't work
 in a particular time and place,
 so that you could say they're,
 them going up in flames
 is a way of enlightening the rest of us.
 Or if they figure something out,
 Steve Jobs creates the iPhone, it changes the world forever.
 Enlightening the rest of us, okay.
 And Taleb would say-
 The fire of their failure, okay.
 Yeah, exactly.
 Taleb would say, individual fragility
 is inseparable from ensemble anti-fragility.
 So this means that, again,
 every time that entrepreneur goes up in flames,
 or say a restaurant goes out of business,
 when a restaurant goes out of business,
 that particular cuisine strategy they were implementing
 in that particular time and place,
 that's a signal to all the other restaurants in the area
 that that doesn't work.
 So restaurant food improves from bankruptcy to bankruptcy.
 So it's this death of the individual components
 that contributes to the growth of the ensemble.
 As a small aside, maybe you can guide me through it.
 I don't know if you're paying attention,
 but there was some chaos around Taleb
 and the Bitcoin community.
 I wasn't quite paying attention,
 but from my outsider's perspective,
 I thought, it seemed Taleb was a supporter of Bitcoin.
 And then a lot of people were very upset about something.
 I'm sorry if I don't know the details,
 but can you pull out some profound philosophical ideas
 from the disagreement of the chaos?
 I admittedly don't know too much about it either.
 I'm a big fan of his writing.
 He's always been a little different in person.
 Like I actually, he signed one of my books,
 I met him in person.
 He's got a very abrasive personality.
 He's kind of known for it.
 I don't think I'm passing any judgment here.
 He sort of embraces it.
 But he had written the forward
 to a really important book in Bitcoin
 called the Bitcoin Standard for Safedean Amoose.
 And then I think they had a little Twitter beef
 because Safedean is very much against COVID mask
 and state intervention,
 whereas Taleb's on the other side of the fence.
 And then after that beef,
 Taleb came out against Bitcoiners saying,
 oh, Bitcoiners are crazy and wrong.
 I think the great mask debate of the 2020
 will probably be the thing that ultimately leads
 to World War III.
 I've been very surprised how tense,
 how much division this one little arguably silly thing
 has led to.
 I think a lot of people sort of project their,
 it's almost like not wearing a mask
 is a statement of sovereignty, of freedom,
 of saying fuck you to the man, the government,
 the centralized power, or the dishonesty,
 or in the scientific community, all those kinds of things.
 And then wearing a mask is a sort of kind of signaling
 of various kind of social aspects.
 I don't know, I'm not paying attention to it.
 I actually tuned out,
 I was part of a group of scientists
 that were looking into like, do masks work?
 This very interesting question.
 To me, it was an interesting question.
 I sort of roll in to ask that very interesting question
 because I think it is an interesting scientific question.
 But then I quickly realized that just as I was
 doing this like scientific exploration
 of this very interesting question about virion particles,
 like what kind of things,
 like from a scientific perspective,
 how do we prevent the spread of a pandemic?
 Forget COVID, any pandemic, super deadly or not deadly.
 Like there's tools, there's testing, there's masks,
 there's all these tools, how well do they work?
 And then I realized, in April or so,
 it became a tool of politics, a tool of philosophy.
 And that's when I sort of pulled out.
 So it's fascinating.
 I think it's a canvas on which people project
 their emotions and I guess,
 Telem got caught up in that kind of,
 so there's nothing fundamental,
 I suppose to their disagreement.
 Not that I'm aware of, but he is,
 he's written some about in his books,
 the problem with centralization.
 I mean, a lot of his writing addresses that.
 And he actually points to,
 I think Switzerland is the best government in the world
 because it's decentralized.
 So there's that.
 I don't think he has any, I'm not to speak for him,
 but I don't think he's voiced any specific critiques
 on Bitcoin per se.
 Could be wrong about that.
 It's just maybe his flavorful language
 and the way he likes to communicate.
 And the other theory is that maybe he's playing 4D chess
 and having a Twitter boating accident.
 So I don't believe in Bitcoin.
 I've sold all my Bitcoin.
 Oh, I see.
 Sorry, the boating accident in Bitcoin is this,
 I guess it's proverbial by this point
 where it's the way you lose your Bitcoin.
 So if someone comes after you and says,
 hey, whether it's a government
 or an individual is coming after you saying,
 give me all your Bitcoin or pay these taxes in Bitcoin.
 You go, oh, I had a boating accident and lost them all.
 Lost them all.
 So yeah.
 But back to the fundamental nature of space time.
 Let me ask you, because we're kind of left it.
 I'd like to go back to this idea
 that you said that everything we think, say or do occurs
 within the bounds of space time.
 So first of all, maybe you can comment on
 what do you mean in this context about space time,
 but also about the nature of truth.
 Like how much of all of this is knowable?
 How much of this is accessible to us humans?
 How much uncertainty like we're talking about
 is there in the world?
 Are you, do you fall in a place where we can reason deeply
 about this world and it's knowable or is it mostly chaos
 and we're just holding on for dear life?
 Yeah, I think I said that all action occurs
 within the bounds of space time.
 The other thing, everything we say, do or make,
 the other thing is that everything we say, do or make
 starts out as an idea.
 So there's this concept of universal Darwinism,
 which basically applies Darwinian principles,
 but outside of the biological sphere.
 So we could say that this kind of gets
 into Richard Dawkins' mimetics,
 that even ideas are competing, reproducing, recombining.
 That idea is so powerful, by the way.
 I don't think it's been understood fully.
 I think in the digital, in the 21st century
 in the digital world, from my perspective
 in the artificial intelligence,
 there's yet to be some profound things to be discovered
 about this whole construct.
 Agreed completely.
 It's been called an acid actually,
 and then it strips away all of the non-informational
 components of something,
 just strips it down to its bare bones.
 I have a quote in here somewhere about that, but.
 So which is called an asset, the ideas?
 The universal Darwinism.
 Darwinism applied broadly outside of the system.
 Applied broadly and I will condition all of this
 with saying that most of my thinking is shaped
 by a book I wrote recently called The Case Against Reality,
 which introduced me to this concept,
 but it tied into Darwinism that I've used more broadly
 in the past, looking at things like money and economics.
 So the book, The Case Against Reality by Donald Hoffman,
 he has a quote in the book
 that describes universal Darwinism.
 It says, quote, universal Darwinism can,
 without risk of refuting itself, address our key question.
 Does natural selection favor true perceptions?
 If the answer happens to be no,
 then it hasn't shot itself in the foot.
 The uncanny power of universal Darwinism
 has been likened by the philosopher,
 Dan Dennett, to a universal acid.
 And Dan Dennett says, quote,
 there is no denying at this point
 that Darwin's idea is a universal solvent,
 capable of cutting right to the heart of everything in sight.
 The question is, what does it leave behind?
 I have tried to show that once it passes through everything,
 we are left with stronger, sounder versions
 of our most important ideas.
 Some of the traditional details perish,
 and some of these are losses to be regretted,
 but good riddance to the rest of them.
 What remains is more than enough to build on, unquote.
 So the way I would interpret that is that life itself,
 I've come to view life as information
 propagating through flesh, and that we are,
 I guess DNA is a quadratic code,
 I think it's four letters,
 maybe versus a binary zeros and ones.
 And we are ideas, we are strategies
 competing with each other.
 And nature is that which selects,
 it's what selects the winning ideas,
 the ones that are most fit
 to environmental conditions, frankly.
 You know, talking about sovereignty and individualism,
 there might need to be some rethinking here
 about what is actually the basic individual entity
 that is to be sovereign.
 Like maybe our biological meat vehicles
 were like way overly attached to them.
 Like maybe, especially with genetics
 and all those kinds of things,
 or artificial intelligence,
 or living more and more in virtual worlds
 will become detached from that kind of idea.
 So for example, if I can clone you,
 you know, make one million robbers,
 but you all have the same idea,
 what is your real value?
 As the, like I could just shoot you
 and there'll still be 999 of you,
 but the idea is the important thing.
 The things you believe, so.
 I would argue that, I don't know,
 even if you clone someone perfectly,
 I don't think you can reproduce the individual themselves,
 because we're all a product of nature and nurture, right?
 So my particular concourse of experiences,
 the path dependence that I represent cannot be replicated,
 as nor can anyone's for that matter.
 Well, that's a hypothesis.
 So that's of course a human meat bag would say.
 So, like desperate trying to preserve himself.
 You know, I think it reduces
 to some fundamental questions about what is consciousness
 and whether that can be cloned, all those kinds,
 you know, it gets to the core of what it is to be human.
 What are the things that make you particularly you?
 Yeah, I think it would assume
 kind of a materialist viewpoint on reality,
 and that if you could reproduce every atom
 of an individual that you would have their experience
 encapsulated in that.
 And, you know, Hoffman's, which is the book is very radical.
 He argues that space and time is not an objective reality.
 It's a biological interface.
 So we are scanning our environment for fitness payoffs.
 And this space and time is the rendering
 specific to human beings
 that allows us to navigate reality effectively.
 So the further argument would be that we all have
 pretty similar interfaces,
 but they're all slightly different too,
 because we're all, you know, adapting in different ways
 and that different animals have their own unique interfaces.
 So we have a certain amount of photoreceptors in our eye,
 whereas I think the number is three, might be five,
 or something like the mantis shrimp has like seven or nine.
 So they can see, and we only see
 one 10 trillionth of the light spectrum.
 So talk about a tiny fraction.
 I mean, one 10 trillionth is a very miniscule number,
 and that makes up all of the light
 that we can interpret with our eyes.
 But something like a mantis shrimp could see,
 you know, much more of that.
 So I think there's this, we're very conditioned
 to have a fully materialist viewpoint on reality today,
 where we think, you know,
 the atomic clockwork kind of universe.
 But I think there's, I don't think that's true exactly.
 And another school that goes into that
 is actually Austrian economics,
 where we could say that, you know,
 we mentioned earlier that an asset is not property.
 It's actually based on the relationship
 between the individual and the property.
 There's this whole realm of relevance associated with,
 we're all moving through life
 in the course of a goal-directed action.
 So when we walk across a room, I go from A to B,
 it's because I valued B more than A.
 So value is inseparable from human action.
 We have a rank ordered value system in our mind, each of us,
 and we're constantly taking action in accordance
 with those rank values.
 Anything that accelerates us on the course
 of our goal-directed action towards our goal is useful.
 Anything that impedes us, or we could say is valuable,
 anything that impedes us is actually obstructing to value.
 And anything that's irrelevant is just valueless.
 So this table that we're using right now,
 like this is a, it's an accessory to you and I,
 because it's holding this paper
 that's holding the information
 that's guiding our conversation.
 But we could pay someone $100 to jump over this table,
 and this table could simultaneously be an accessory
 to you and I and an obstacle to someone else.
 So it's this domain, this silent contention
 of willpower and agendas occurring across the face
 of the earth that is what Austrian economics really looks at.
 It's the realm of human action, as they call it.
 It's called praxeology.
 So it's a non-materialist viewpoint on reality
 and that things we think in terms of matter being reality,
 but it's often more so in the sphere of human action,
 what matters that is reality.
 It's the relevance of a thing to the course
 of one's goal-directed action.
 And that's ultimately exists in the space of ideas.
 Yes.
 Not in the space of physical matter.
 And just to jump back to this line here,
 I think his fundamental line here is,
 the question is talking about universal Darwinism
 as an asset, what does it leave behind?
 I've tried to show that once it passes through everything,
 we're left with stronger, sounder versions
 of our most useful ideas.
 That's the key point to me, and that ideas and information,
 so far as we can tell, are the most fundamental substrate
 of reality.
 And information itself, back to entropy,
 information is the resolution of entropy.
 That's what the bit is, right?
 It's a one or zero.
 Whatever reduces your entropy by half is a bit.
 And we measure information in bits.
 So, you're right.
 People don't have ideas, ideas have people.
 Honestly, it's a really profound idea,
 or a statement about reality, a reframing of reality.
 It's, if we're actually being deeply honest about it,
 it's quite painful.
 I do appreciate that you defended
 your biological meat bag earlier,
 but it seems like ideas are the things that have power.
 That me, Lex, for example, is worthless,
 and relative to the ideas that used my brain
 for a bit of a time.
 But, so far as we know, only human beings
 can generate and share ideas.
 So you can't say Lex is worthless.
 Like, you are the node of the idea sphere.
 I'm like, the newest sphere.
 So, I'm, what is it, from a Bitcoin perspective,
 I'm like, I'm mining,
 I'm solving the cryptographic problem and the,
 just generate.
 I'm a, in that sense, I'm a useful node.
 Yeah, you're competing to solve the puzzle of entropy,
 right, and when you do solve it,
 it benefits the entire network.
 But, I guess, from my perspective,
 just because just working in AI,
 I'm looking at the long-term vision.
 I see us humans and AI systems as really the same,
 and AI systems, ultimately,
 as something that supersedes humans.
 So what is intelligence?
 So, in the context of our current discussion,
 I think intelligence is very closely linked
 to this notion of ideas,
 and it's the ability to generate ideas,
 to mold ideas, to compress seeming chaos
 into some model, into some theory,
 that efficiently compresses the chaos
 in a way where you can then integrate it with other ideas,
 and they can play, and all those kinds of things.
 So, in that sense, it's the turning chaos into order.
 It's the molding of ideas such that our human brains
 can work with it.
 And, just from my perspective,
 I don't see any reason why that cannot be algorithmatized,
 converted into computational systems.
 I would agree.
 Which is scary.
 Scary, or potentially really promising, right?
 It's kind of the case with all novelty.
 It's terrifying as much as it is promising.
 That's why you're pursuing it so heavily.
 I would maybe take it a step further
 and say that intelligence,
 in maybe its most simplistic form, is error correction.
 Humans have wants.
 Again, we're constantly expressing our value through action.
 There's no other way to express it, by the way.
 It's whatever you choose to do in any moment,
 you are expressing the values you hold
 in your mind and your heart.
 As we move from less valued A to more valued B,
 entropy happens, uncertainty happens, we fall off course.
 And it is intelligence that enables us
 to render information from that experience
 and error correct, right?
 So that we can move slightly,
 shift our trajectory slightly more towards B
 that we're trying to move towards.
 So I think that there's something there
 that I don't know that we can make synthetically.
 And that if we define intelligence as error correction,
 it's like error correction to what?
 Error correction towards what we find is valuable.
 So we're trying to satisfy human wants.
 Might not just be our own, could be others as well.
 If I'm an entrepreneur, I'm trying to solve the wants
 of others, not just myself.
 And I'm trying to error correct myself towards that goal,
 using intelligence and processing environmental feedback
 through intelligence to error correct.
 So I don't know how, if you eliminate
 the human element completely, who's doing the wanting?
 Where does value come from?
 I know the machine learning people who are listening
 are saying that's exactly what machine learning is,
 which is error correction, because you have a loss function,
 objective function that measures
 how wrong your thing is, and you wanna make it
 less wrong next time.
 That's the whole process of machine learning.
 But you're saying what humans are able to do
 is in a world where there's no maybe objective values,
 absolute values, you're generating that very loss function,
 that objective function, that function
 that measures the error comes from the human mind.
 Some aliens might disagree with you,
 because they might have a different objective function.
 I would say purpose comes from consciousness, I think.
 And without purpose, there's not error correction.
 Yeah, I mean, this is again a hypothesis,
 like where does purpose come from?
 It seems to come from consciousness, you're right.
 That's where suffering comes from,
 and you want to lessen suffering.
 That's where pleasure comes from.
 It seems like it's consciousness.
 Maybe there's something to this biological meat bag.
 So to take it one layer deeper on this,
 and the reason I like this book so much,
 again, the case against reality.
 So he's making the case that space and time
 are not fundamental.
 Which I started my intellectual explorations in physics,
 actually astrophysics.
 So for the longest time, even the way I describe money
 as I talk about space and time, so that blew my mind.
 But this dovetailed nicely with another book called Leela.
 The author is Robert Persig.
 So he wrote Zen and the Art of Motorcycle Maintenance,
 which is a very popular book.
 20 years later, he wrote Leela,
 which no one's heard of, which is crazy.
 And he basically says he was wrong about his first book.
 And he lays out this entire other metaphysics of quality,
 he calls it.
 So it's the metaphysics, I think it's metaphysics of quality.
 But his supposition is that it's not physical reality,
 that's fundamental.
 It's not informational information that's fundamental,
 it's value.
 So he actually, and it's a beautiful book,
 I highly recommend it.
 He essentially is refuting causality itself.
 We think A causes B.
 This book makes the case that B values precondition A.
 So that we are actually creating our future
 through our value systems.
 And this goes back to something,
 I think Solzhenitsyn said this,
 that the line between good and evil runs down
 the heart of every man.
 So it's as if our moral decisions are actually
 what's creating the outcomes in reality over time.
 And then that gets into all the wisdom traditions
 related to religion, or it's always talking about
 loving thy neighbor and loving God
 and all of these other things that are good morally
 to create the best outcomes.
 So values are fundamental. Value, yes.
 Value is fundamental.
 Oh boy, yeah, that's interesting.
 It does feel like physics is not capturing something.
 There's some people, panpsychists argue that
 consciousness might be one of the fundamental
 properties of nature,
 from which emerges everything we see.
 So that could be just other words
 for this same notion of value.
 And then the basic laws of physics
 are not capturing that currently.
 So maybe humans, in order to understand
 from where humans came from,
 we have to understand these other properties of nature,
 which are yet to be discovered at the physics level.
 And it's, we contend with that underlying nature,
 whatever it is, with the logos, right?
 So we're looking at uncategorized nature,
 and then we're assigning a word to it.
 So we're slicing up chaos into little boxes of order.
 And then we're establishing this social consensus
 as to those labels, which we call words,
 and we're using that to communicate.
 And when we communicate,
 we can start to build these other things.
 This is like the Yuval-Hirari imagined orders.
 So we can create these useful fictions, right?
 Whether it's the nation state or human rights or money.
 And that allows us to cooperate flexibly in large numbers
 so that we can better contend with reality.
 We can produce more complicated things.
 We can enlarge that bubble of civilization against entropy.
 And that's what capitalism is all about.
 It's about further specializing knowledge,
 further enriching mankind's treasury of knowledge.
 And doing it, but to do that,
 the communication media that we're using,
 the words have to have stable meaning.
 The money needs to have value that's dependable, right?
 It needs to be something that's,
 it's not dictated by any one group.
 It's reached by consensus of the entire group.
 That's how, so you could think it's like optimizing
 for error correction again,
 where a free market would be harnessing the intelligence
 of all market actors and a central planning
 or essentially planned market would be harnessing
 just the intelligence of a small group of bureaucrats.
 And it's not obvious how to achieve
 this kind of consensus mechanism.
 I mean, there's obviously,
 we'll talk about sort of Bitcoin as an idea.
 Ultimately, the idea of Bitcoin is connecting into physics.
 So like you can trust that physical matter won't change,
 but there could be other ideas
 that we get maybe physics could be changed.
 Farrick Weinstein has anything to say about it.
 Like it's, we right now believe that physics
 can't be changed, the physical matter of the world,
 but maybe it can in a way
 that we're in totally not understanding.
 You mentioned sort of reality
 from Donald Hoffman's perspective.
 Like if we don't have even close to direct access
 to the fabric of reality,
 maybe we're living in a world that's very like many
 dimensions that the notions of space and time
 is just like a silly and useful construct
 that's not at all connected.
 You're starting to look at like Stephen Wolfram's,
 I don't know if you're familiar with this view of the world
 that it's like hyper graphs underneath it all,
 like these mathematical structures
 from which everything emerges.
 Like they're like many, many, many orders of magnitude
 smaller than what we think of as they're even smaller
 than like strings and string theory.
 So like those are the basic mathematical objects
 from which it emerges.
 I don't, I think that's an interesting
 philosophical framework.
 It's also, people should check out a cool way to play
 with beautiful hyper graph mathematical structures.
 So he has, I don't know if you know who Stephen Wolfram is,
 but he created Wolfram Alpha and all these tools
 that you can actually visualize and play with.
 So you can play with physics in a visual way,
 which or at least discrete mathematics,
 which I think is incredible.
 He doesn't get enough love.
 One of the reasons he I think doesn't get enough love
 is because of this little quirk of human nature,
 which is the ego.
 And he sometimes frustrates a few folks
 because he's very, let's say proud of his work.
 I guess.
 But it's interesting to think about a world
 where we don't have direct access to reality
 as Hoffman argues.
 And maybe, I don't know if you can comment.
 I don't know if you're familiar with Ayn Rand's work
 and her whole philosophy of objectivism
 or her whole contention is that we do have access.
 I don't wanna misstate it,
 but at least she would claim that it's not useful
 or I think she would probably say it's not correct
 to argue that we don't have access to reality.
 We have, hence objectivism.
 We have direct access to reality.
 That's the only thing we can reason about.
 And the only way to live life morally
 is to reason through everything,
 starting with the axioms of reality,
 which we do have direct access to.
 You have thoughts about her work?
 I am slightly ashamed to say
 I have not read Ayn Rand yet.
 So she is high on my list
 and she's been recommended a number of times.
 So I don't know a lot specifically
 about her philosophy or objectivism,
 but to me, it resonates closely
 with what the American pragmatist commented on truth.
 And they distinguished what you could say is absolute truth,
 which is at the bottom of reality,
 whether it's Mr. Wolfram's mathematical formulas or value,
 whatever it may be, it's something ineffable,
 something beyond the reach of epistemology perhaps even.
 And maybe that's why religion just sort of points to it.
 It's trying to use, I think Joseph Campbell said something
 like religion is using stories to point
 towards the same transcendental mystery we all experience
 but cannot articulate.
 So something like the artist uses lies to point to the truth,
 something like that, that kind of thing.
 That's really good.
 But the American pragmatist said that,
 because at the end of the day, this is all about,
 when we say truth, we need something that is socially,
 close to social consensus
 and is not shakeable by political action.
 So that's what physics and mathematics are.
 It's an unshakeable point of reference,
 I guess you might say.
 So the American pragmatist defined truth
 as the end of inquiry.
 And in markets, we could say that the market itself
 is a forum that generates truth.
 We call this pragmatic truth to separate
 pure objective truth that we can't even talk about
 without polluting it versus pragmatic truth,
 which is something that's useful.
 So the example here would be, if I give you a map
 and you're trying to go from your house
 to the local brisket restaurant,
 and the map gets you from your house to brisket restaurant,
 is that because the map is true
 or is that because the map is useful?
 Right, they're very hard to disentangle
 when you're just looking at it pragmatically.
 And in markets, markets, I argue,
 generate three forms of pragmatic truth.
 One is the price.
 So this is the collective subjective demand
 and purchasing power of humanity
 running up against the objective supply of capital
 and resources in the marketplace.
 So there's demand overlaid on supply.
 The result of that is the price.
 So that is the most truthful exchange ratio,
 which is the closest approximation to the value
 of any good in the marketplace.
 So it gives us a data point on which we can operate.
 It's compressing all known market realities
 down into a single actionable number.
 You know, based on the price of bread or copper,
 whether you wanna buy more of it,
 you wanna abstain from buying it,
 or maybe you wanna try and find substitutes.
 And you can think of that price signal,
 it's like an economic nerve signal
 that's coordinating human action across time.
 So if we're one socioeconomic super organism or collective,
 that the price signal is the nerve.
 And that's the first form of pragmatic truth
 that markets generate.
 The second form would be tools and innovations themselves.
 So entrepreneurs are experimenting across time.
 They're trying to satisfy the wants of consumers.
 Consumers are sovereign in the marketplace.
 Whatever the consumer wants, the consumer gets, right?
 I'm trying to satisfy that.
 I'm trying to do it at a profit.
 So I'm trying to take viewing the existing price signals
 of goods in the marketplace.
 I'm trying to assemble those in a way
 at a cost lower than the final solution
 I'm delivering to my customer.
 I'm selling it at a price higher
 than the productive factors I combine to create it.
 And in that iterative process,
 we're constantly discovering new and better ways
 of solving problems or satisfying wants.
 So we could say to go out and dig a hole, right?
 Someone wants a hole dug,
 that a shovel is gonna let you do it much faster per hour
 than you would with your bare hands.
 So what is the pragmatic truth of digging holes?
 It's a shovel, right?
 It's the best way we know how to solve
 any particular problem based on
 the existing treasury of knowledge.
 So every tool, again, we're back to ideas being fundamental.
 The shovel itself is just a knowledge structure.
 We've figured out a way to create this particular implement
 and then we've indexed the raw materials we found in nature
 to this knowledge structure to create a shovel,
 which allows us to better satisfy human wants,
 faster, cheaper, better, effectively.
 I'm trying to generalize,
 you're blowing my mind a little bit here.
 I'm trying to generalize the idea of tool
 how to think about it.
 Cause I keep just, when you say tool,
 I keep imagining different tool,
 like specific instantiations of a tool.
 I'm trying to see, so the price is a pragmatic truth
 that's communicating value in this network.
 Subjective demands against objective supply.
 So it's an economic democracy.
 Got it.
 So that's the demand supply.
 And then the tools are the ways of extracting
 or solving problems is the more general kind of.
 Or satisfying wants.
 Satisfying wants.
 So wants are somehow,
 that's part of the supply and the demand.
 And wants are back to value, right?
 Cause everything someone wants are expressing their value.
 Okay, yeah, so the shovel is a pragmatic truth.
 The shovel is truth.
 It feels like a good book title.
 Okay, sorry.
 So what other, what is the third?
 And then the third one I would argue is virtue actually.
 Oh wow.
 And another way to maybe think about this
 is competitive competency,
 but it's also cooperative competency.
 So we're learning over time,
 what characteristics, what patterns of action,
 what mindsets, what mental tools,
 what heuristics are most useful
 to satisfying customer wants.
 So I think that becomes over time,
 becomes sharpened into virtue, right?
 Like we know it's best to be honest
 because if you lie, it's very energy inefficient, right?
 You're creating this little fork of reality.
 And then if someone else asks you about that lie again,
 you have to put another layer of lies on top of it.
 Where if you just tell the truth,
 you're just recollecting what happened.
 And so that sort of keeps,
 again, when we're talking about delaying volatility, right?
 If you lie, you're delaying short-term volatility,
 but you're increasing long-term volatility.
 What about murder?
 I haven't been able to figure out why murder is bad
 because I just keep wanting to murder people.
 And I've murdered many.
 I should see someone for that.
 Well, that's why I'm trying to get an interview
 with Vladimir Putin.
 So that's fascinating virtue in this market
 with the supplies and demands.
 And there's the tools, which is also a pragmatic truth.
 And there's virtue.
 It's a pragmatic truth.
 Yeah, and if we interfere with that free market process,
 again, if we overstep, which this maybe ties into murder,
 if you start to be coercive against life,
 liberty or property,
 so if you're forcibly taking someone's life,
 you're breaking down the trust in that market
 that generates these pragmatic truths.
 If you forcibly infringe on someone's liberty, right,
 for any reason other than them originally breaking
 or infringing on life, liberty or property,
 then that's not gonna work either.
 And then if you violate private property rights,
 if you steal property from others,
 you're breaking down the trust
 that the intersubjective fabric of money and markets
 and the rule of law,
 all of these useful fictions are meant to preserve,
 you're corrupting it and breaking it down.
 What's kind of interesting to think about the market
 as helping evolve the virtues.
 It's sharpened into virtues.
 And then these virtues can then go
 into motivational posters.
 People are like in books that we all agree on
 and then eventually take for granted
 as if they were somehow fundamental to human nature,
 but they're not perhaps fundamental,
 they're just pragmatic truths.
 Yeah, another way to consider competition itself
 is that it is a discovery process.
 So entrepreneurs are competing with one another
 and they're trying to best satisfy consumer wants
 at the lowest possible price.
 So they're placing bets of time, energy and capital
 on themselves, on their idea, their business plan.
 And then the market decides, right,
 the consensus of market actors decide
 which one was better, one lives, one dies.
 So competition itself is helping us get closer to truth,
 to pragmatic truth.
 So we're discovering what is the right price for this asset.
 And that price, by the way, is derived,
 again, in the sense of data compression.
 Everyone in the world can see that price.
 Everyone in the world can then put their skin in the game
 by choosing to buy or sell or short or go long
 or do any number of financial actions on that price.
 And that information is then propagated back out
 to everyone else.
 So it's this feedback loop between market actor and price
 that makes it so useful.
 And that's what carries us.
 So it's these collisions of interest that carry us.
 It removes the unuseful aspects of ourselves
 or of our tools or of a price
 and reveals pragmatic truth to us.
 Can you play my therapist for a second?
 And if we talk about creative destruction,
 I think, not Bukowski,
 Hunter Thompson has a quote,
 something like, for all instances of beauty,
 many souls must be trampled.
 Wow.
 But there does seem to be an aspect of competition
 that destroys.
 You were talking about entrepreneurs
 sort of on the outside of the circle of order,
 striving to make sense, to compress volatility
 of the chaos of the universe.
 Is there some way to protect a little bit
 against the pain of that destruction,
 of that creative destruction,
 that entrepreneur screaming on fire
 as he enlightens the rest of us?
 Is there some role for us humans together
 in the togetherness of it?
 Also government, but any kind of collectives
 in helping that entrepreneur who's on fire
 maybe after a few minutes to spray him with some water
 and put him out of his misery?
 I would say that pain is the inarguable basis of being.
 Pain is no matter how you try to explain it away
 or describe it,
 it's not something you can rationalize away.
 It's no one, I think, ever,
 someone may want to cut themselves to have an endorphin high,
 but no one wants to suffer, we'd say.
 So pain in that sense,
 it is what we're constantly trying to deal with
 and to move away from or create buffers between us
 and potential pain or potential uncertainty.
 And that pain is information.
 When we experience something that is misfit
 to the outcome we desired,
 that pain is what puts us,
 it encourages us to change our trajectory,
 to get back on course towards our valued aim.
 So as far as you need entrepreneurs that are exploring
 and you're trying to do something new,
 if you're a pioneer of any kind,
 you are courageously facing pain.
 You're willfully confronting it.
 So I don't think it's avoidable in that sense.
 It's not like we can have pain-free economic growth,
 like the central bank would maybe have us lend to believe
 that we can just run these experiments
 and when they fail,
 we'll just paper over all the losses and continue,
 or you're just delaying and exacerbating
 the inevitable volatility back to reality.
 But what I would say is that capitalism,
 because we're building,
 we're increasing the capital stock of the world,
 which again, capital is the mitigation of risk.
 So we're reducing the overall risk of existence
 by accumulating more capital in the world.
 And that's what protects that entrepreneur
 that's deciding, hey, I saved up a million bucks.
 I'm gonna go try this business idea.
 I'm gonna put all my money on the line.
 And if he goes up in flames,
 then his cost of living when he comes back to reality
 and he's starting over from zero,
 his cost of living is substantially lower
 starting over from zero
 than he would be out in the wilderness on his own.
 So it's the accumulation of capital stock
 is the buffer against uncertainty for everyone.
 And it gives you actually more potential
 to go out and experiment,
 to go out and confront the chaos of nature
 because you are better healed effectively.
 So I think we're speaking
 in sort of idealistic terms about the power of capitalism
 when it works well.
 Is there any aspects that you think that don't work well
 in a free market?
 In all the basic pragmatic truths
 that we were talking about,
 is there ways it can go wrong?
 So I would first argue that we have never seen
 an actual purely free market.
 Closest example would be,
 kind of geopolitically we have a free market
 and that governments are not necessarily governed.
 But they are premised on
 governing large groups of individuals.
 So that's not, doesn't exactly.
 You mean between governments?
 Yes.
 See, but isn't there still,
 so a free market, maybe you can correct me,
 is the free market still grounded in the ideas of,
 you know, property rights and all those kinds of things,
 right?
 So governments tend to also sometimes
 be violent towards each other.
 That's right.
 So they don't respect all the basic aspects of capitalism.
 That's right.
 So maybe another way to look at this is that
 gold is the original governor of government, actually.
 And this is the reason governments have abused
 and gone off of the gold standard.
 So historically, if you are a bank or a nation state,
 and you produce more currency
 than your gold reserves can justify,
 then people, then gold will flow out of your bank
 or out of your country.
 So there's this natural check
 via the money that, via capitalistic money, which is gold,
 right?
 Gold was selected by the free market.
 It's not decreed by government.
 It provided this natural check on government action.
 So my, I guess to get back to the original question is,
 we've never seen a pure free market
 because money has always been monopolized
 and coerced, frankly.
 So to try and answer what goes wrong with a free market
 is really difficult because we've never actually seen it.
 And I would define, free market is one
 in which government only protects life, liberty,
 and property.
 And so that has a very minimal role in society.
 Again, just as network security
 for the economic trade network.
 And anything that, any government function
 that goes beyond those three core functions,
 which by the way,
 are pretty much the core tenets of morality as well.
 So government's just really intended to preserve,
 you know, natural law, if you will.
 Anything that goes beyond that is,
 moves us closer to an unfree market.
 So every,
 regulation, every act of coercion is actually
 a gradation closer to a purely unfree market,
 which would be a monopoly.
 So in terms of what, I guess theoretically,
 we could say goes wrong in the free market
 is that it's volatile.
 It's trading off, it's accepting short term,
 short term volatility
 in exchange for less long run volatility.
 And this tends to be the way of nature, by the way.
 So if we, we could look at something like,
 there's a region in North America called Baja, California,
 and it runs into the United States
 and it runs down into Mexico as well.
 So the same topology, but two different jurisdictions.
 In the U.S.,
 we very heavily manage forest fires.
 We're trying to manage forest fires,
 we're trying to manage nature effectively.
 Whereas in Mexico is much more unregulated.
 It just, when wildfires spring up,
 they let them burn off.
 North America, when wildfires spring up,
 we're actually extinguishing them.
 So we're constantly trying to dampen
 the short run volatility of these small brush fires.
 Whereas in Mexico, we just let them burn.
 We let nature do its thing.
 The consequence of this is that
 the wildfires still occur eventually,
 but they're much larger,
 much more devastating in North America,
 where human intervention is still happening.
 And so the wildfires are still happening
 and the wildfires are still happening.
 So we're trying to manage that.
 And so the reason why we're trying to do this
 is because we're trying to manage
 the natural corrective mechanism
 of clearing this underbrush
 with these more frequent and smaller fires
 at the cost of much larger fires.
 So again, we're delaying short term volatility
 and exacerbating long run volatility.
 And in Mexico, it's the opposite, right?
 Just these wildfires burn much smaller
 and more continuously over time.
 The further effect of that in North America
 is that the more the wildfires burn,
 the more they get so hot
 that it burns away the topsoil.
 So it actually destroys the fertility of the soil itself.
 So the point of this is that human intervention, right?
 Even the intention behind North American authorities
 managing that forest fire is to create less destruction.
 That is the intention.
 But the intention is divergent from the outcome.
 So in Telebian speak, you would say that
 Mediocristan into Extremistan.
 So Mediocristan would be something much more like nature
 where, for instance, you can't double your body weight
 in a day, probably can't even do it in a year, right?
 But in Extremistan,
 which is something much more information-based,
 you can double or send your net worth to zero
 in a single trade in a single moment, right?
 So when we try and intervene
 with natural biological systems
 that have these feedback loops,
 we actually start to push the system more,
 to behave more like an Extremistan system
 that has less short-run volatility,
 but more extreme long-run volatility.
 But the question is,
 where you look at capitalism or communism, for example,
 and by the way, yes, I will talk to somebody
 who's a Marxist or a communist,
 like Richard Wolff is a pretty eloquent defender
 of these ideas,
 because it's always good to really understand ideas
 as opposed to just reject them offhand.
 When you look at the system of capitalism
 or the system of communism,
 there's ideals, and a lot of people argue,
 in this perfect form would actually be good for the world.
 The question is, how resilient are they to the corruption
 of human nature?
 And I mean, you're saying that there's not a,
 there's never been a free market.
 It's a very true statement.
 The question is, how resilient is capitalism,
 or whatever implementations of capitalism
 we had up to this point,
 to human nature where one person will become successful
 through legitimate means,
 then starts to try to manipulate the system
 that takes it away from a free market,
 or takes it away from the things that gave them the riches
 in the first place,
 and then try to, through corruption, get more,
 get this, the thing you said, the lazy human ways.
 Now try to figure out how to get something for nothing.
 That's right.
 So how resilient do you think is capitalism to that?
 Well, the best implementation we've had of it
 really has been the United States, I think,
 up until this point, but it's still,
 the central banking itself,
 this was in the 1848 Manifesto of the Communist Party.
 Measure number five reads,
 an exclusive state monopoly in centralized control
 over cash and credit.
 So the central bank is a Marxist or communist institution.
 It is antithetical to the free market principles
 on which the United States was founded.
 And indeed the United States resisted the implementation
 of a central bank.
 I think it was Andrew Jackson.
 I know that there was the first national bank,
 the second national bank were both disbanded.
 And then Andrew Jackson, which is my favorite Tennessean,
 he has some famous quotes about routing out the bankers
 like a den of vipers.
 I think he punched one of the central bankers in the face.
 Back when our leaders were a bit more bad-ass,
 I guess you might say.
 And finally in 1913, the Federal Reserve was implemented
 and it's been kind of all downhill from there.
 So what is, can you, oh, sorry, okay.
 I was just gonna say that communism and capitalism,
 it's also a matter of scale.
 The ideal behind communism is from each according
 to their ability to each according to their need.
 Sounds beautiful, right?
 Sounds like a great, peaceful, harmonious way
 to organize ourselves.
 The problem is, and by the way,
 I am a communist in my family, in my home, right?
 Right, that's very small of scales.
 Yes, in your very small circles of trust,
 you're much more likely to behave selflessly
 towards one another.
 By the way, I look forward to the Bitcoin community
 clipping out that part, saying that Robert Breedlove
 is a communist and the ideals of communism are beautiful.
 Yeah, context matters, people.
 Sorry, go ahead.
 But to your point, it does not scale, right?
 As we move into this larger system
 of socioeconomic cooperation, which is necessary
 to deepen the division of labor, to generate more wealth,
 right, we need to interact with one another
 on much larger scales than this communistic utopian ideal,
 we get into the realm of capitalism
 where we need really sound rules, hard rules,
 consensus, verifiability,
 and frankly, prices.
 Because the other thing in Soviet Russia
 is they tried to replace the profit motive
 or the price signal with this devotion
 to this nationalistic faith and devotion,
 where it's like you don't need self-interest anymore,
 you don't need prices or profits,
 you can just protect Mother Russia, right,
 and serve Mother Russia, and that would create wealth.
 And what happened, right?
 They destroyed price signals,
 there were shortages, there were famines,
 there's all levels of corruption.
 Because to your point, it's once you,
 people have to run the system no matter what.
 So when people are always pursuing something for nothing
 and you put someone in a seat of much closer
 to absolute power, where they're making
 all the pricing decisions, they own all
 of the productive factors in the economy,
 they're not beholden to any market force.
 There's no market check on their action,
 that that institution tends to become more corrupt.
 And further, it's an inferior resource strategy.
 I alluded to this earlier, where the other way
 to think about free market versus central planning
 is it's decentralized or distributed computing
 versus centralized computing.
 So each one of us, I think that the number
 is 120 bits per second of active awareness.
 So we can take in, clearly we process a lot more than that,
 but our active awareness, I think is 120 bits per second.
 In a centralized planning body like in Soviet Russia,
 they had the pricing czar, maybe they had 10, 20,000 people
 deciding the prices for the entire country.
 You're only getting that much data throughput, right?
 20,000 people times 120 bits per second.
 Whereas in a free market, if everyone is free to interact
 with deep capital markets based on an accurate price,
 you're getting the data throughput of 120 bits per second
 times the entire economy, right?
 So you're getting, it's a more efficient means
 for disseminating knowledge effectively.
 And then again, knowledge is just, the more knowledge
 a socioeconomic structure can contain,
 the more wealthy it is, right?
 Prices, tools, all these things are just knowledge.
 So in that respect, that's why something like capitalism,
 even in its marginalized form, state capitalism,
 out competes communism.
 It's distributed computing versus centralized computing.
 You know, we kind of brought up religion
 and Joseph Campbell and myth and the propagation of ideas.
 And kind of, before I forget,
 I wanted to ask your thoughts about this.
 You know, Jordan Peterson,
 I haven't really understood exactly,
 like be able to pin him down exactly
 what he sees as the role of religion in human society.
 But it feels like he's describing it as having value for us.
 The ideas of myth are valuable.
 They're valuable mechanisms toward,
 I think you mentioned kind of directing us
 in this world as a human society.
 Do you think about myth?
 Do you think about religion?
 What's the use of it in this construct of markets
 in this framework of where ideas are ultimately
 the fundamental thing that makes societies work?
 Yeah, I think Jordan Peterson, who I'm a huge fan of,
 he's been very influential on my thinking
 and influential on my own religious views as well.
 I think his position would be,
 and he said this before, that he acts as if God exists.
 And I've had some arguments about this before,
 but to me, that points towards,
 the preeminence of action and how important action is
 versus your cognitive beliefs necessarily.
 And I think there is a lot of utility in that,
 that if you follow the moral code
 of something like the Bible, you do reap benefits from that.
 Society reaps benefits from that.
 And sometimes I bring up this point and people will be like,
 oh my God, are you kidding me?
 Have you read the Old Testament?
 They're clobbering people with rocks,
 when they do the wrong thing.
 The Bible doesn't claim to be this,
 do everything that was done in the Bible.
 It's more like charting this moral progression,
 where we came from this very barbaric society
 into something more like the New Testament,
 where we're honoring individual sovereignty
 above the state and things like that.
 So I think that mythology itself
 is another form of data compression.
 If you look at these stories,
 Kane and Abel is a good example,
 or Peterson makes the point that it's a tiny story.
 It's a paragraph-ish long,
 but it contains so many layers of meaning
 in regards to violence, evil, betrayal, work,
 the divergence between intention and result.
 Because I think Kane is actually making,
 he's making the effort to sacrifice for God,
 but the sacrifices he's making
 are not, God doesn't find them useful.
 And so he sort of rejects them.
 For a, again, if we're organized
 by these useful fictions,
 these Herarion imagined orders,
 I think mythology is kind of the original version of that,
 where we were learning to organize ourselves
 around stories to best coordinate
 our action across space and time.
 And so I think it's very foundational.
 And back to what we were saying in the beginning,
 that if value truly is fundamental,
 I think it's interesting that all these stories
 point towards often common moral values.
 They're not perfectly aligned,
 but it does speak to just the evolutionary
 importance of morality and the subjectivity of morality.
 Where morality sort of evolves over time
 based on, frankly, the capital stock we've accumulated.
 The more capital stock we've accumulated,
 the easier life is, the less barbaric we have to be.
 Whereas if we're living in conditions of true scarcity,
 then we tend to be a bit more barbaric towards one another.
 And that too, to dovetail this
 into something largely unrelated,
 but I think is really important, is inflation.
 Inflation by artificially increasing the prices
 of goods and services in the world, right?
 We're injecting more dollars,
 chasing the same level of goods and services.
 We are artificially increasing scarcity,
 perceived scarcity, right?
 And when you increase perceived scarcity,
 you are amplifying divisiveness.
 This natural, the natural,
 the natural state of man is when everything is scarce
 and you really have to fight hard
 just to eat or drink water that day.
 So it's de-civilizing in a way
 by artificially amplifying
 the perceived scarcity in the world.
 Can you elaborate, how does inflation
 increase the perceived scarcity in the world?
 So we can think of the price itself is an indication,
 it's a data packet, if you will.
 The price is a data packet on supply and demand, right?
 It's telling you how much supply there is
 of something in the world relative to the demand.
 So when you print money
 and artificially increase that price,
 it's diverging away from supply and demand.
 It's becoming just more of a product of policy
 than it is of free market fundamentals.
 The more expensive something is,
 that is a signal to the marketplace
 and to market actors that it is scarce, right?
 That's why Leonardo painting might sell for $16 million.
 There's only one, there's a lot of demand for it.
 Maybe my numbers are off, but you get the point.
 It's the reason mask spiked in price
 after the COVID announcement, right?
 There was not enough supply, toilet paper, et cetera, et cetera.
 So inflation, and by inflation,
 I specifically mean arbitrary
 fiat currency supply inflation by legal monopoly,
 inflation's a commonly misunderstood word.
 That is amplifying the perception of scarcity
 among market actors in the world.
 And I would argue that it actually amplifies divisiveness.
 I think this is the key maybe to looking at the connection
 between the monopolization of money
 and things like cancel culture,
 because it's increasing our natural predilection
 to be combative with one another
 because we think there's more scarcity in the world
 than there actually is,
 versus in a world where you're not increasing
 the money supply, prices are declining every year.
 As prices decline, this is a signal to market actors
 and the market that scarcity is declining.
 There's less need to fight over things.
 And all of this ties back into the old Bastiat saying
 that if goods don't cross borders, soldiers will.
 So if we're not trading with one another,
 if we're not acting interdependently
 and we're not becoming more intelligent as a market,
 and that increased intelligence or increased knowledge
 is reflected in decreased prices,
 because prices are just the exchange ratios of things.
 So the smarter we can solve problems,
 the better we can solve problems, the less prices would be.
 So it induces more cooperation.
 I love how you tie inflation, cancel culture together
 as essentially artificial creation of increase of conflict,
 artificially increasing scarcity
 and thereby artificially increasing conflict.
 That's really fascinating.
 You're short-circuiting my brain
 many times throughout this conversation.
 Okay, this robot is struggling to keep up.
 Okay, maybe to step back at the useful fictions
 or pragmatic truths.
 Let me ask the question that you've answered
 in many ways already, but let's explicitly look at,
 what is money?
 Oh, as you know, that's my favorite question.
 Yes.
 That is the name of the show I just launched,
 the What Is Money show.
 Clearly, we could say the Bitcoin rabbit hole
 is what's led me to explore a lot of these ideas in depth.
 And I think as we've demonstrated today,
 it goes well beyond just the economic sphere
 when you start to think about things like exchange
 and morality and time preference and civilization.
 So I love the question, what is money?
 I think it is the key to incepting
 a deeper understanding of the world into people,
 that if you actually just start to ask
 the seemingly simple question,
 it surfaces more and more layers of truth.
 And I recently, I just wrote a piece,
 I think I have 30 something answers to this question.
 So there's-
 So in some sense, it's actually a more systematic way
 of asking the question of what is the meaning of life.
 There's some questions that are almost unanswerable,
 but in their asking allow you to get closer to truth,
 deeply understand the nature of our human existence.
 And the meaning of life is almost like this
 initial philosophers striving towards that.
 If money is indeed as fundamental as you've described,
 especially in the context of value being fundamental,
 then that is a really, that's a more,
 let's take a 21st century way of asking the same question
 about what is the meaning of life.
 You mentioned that it's a meta property
 out of the list of many ways to answer that question.
 How would you help people to think about that?
 Yeah, the first most serious answer comes from
 the School of Austrian Economics,
 and it defines money as a universal medium of exchange.
 So this would be any good that is used,
 held and used purely for purposes of facilitating exchange.
 So in the configuration of demand for any particular asset,
 it's bifurcated between its utility,
 which is something a service that it can render to you
 in real time, whether it's, you know,
 if it's water, you're thirsty.
 That's the utility of water is that it can quench your thirst.
 Whereas the marketability would be the expectation
 of future exchange that other people would want this asset
 in the future to trade it for whatever they may have.
 Money is just going to be the good in any trading economy
 that has the highest proportion of marketability
 relative to utility.
 So today that would be gold.
 Gold has utility, it's used in electronics,
 it's used in dentistry and whatnot,
 but it's largely used as a store value across time.
 And that's what it's been used for for 5,000 years.
 So if we say gold has a $10 trillion market cap,
 maybe 2 trillion of that is its utility value,
 or it's actually demand for use in computers and dentistry.
 And an 8 trillion of that is demand
 for its use as a store value.
 Money, the marketability aspects of money boils down
 to five services that money can render.
 Money needs to be divisible, it needs to be durable,
 it needs to be recognizable, it needs to be portable,
 and it needs to be scarce.
 So I'll gloss over a lot of history with this
 and just say that historically,
 money's always been a technology,
 still is a technology or a tool.
 I use these terms interchangeably,
 and you think of a technology
 as just a more sophisticated tool effectively.
 To best satisfy those properties, monetary metals
 were determined to be the most satisfactory tool,
 the most divisible, most durable, most recognizable,
 most portable tool in the marketplace.
 Of the monetary metals, gold was the most scarce
 as quantified by either its stock to flow ratio
 or its inflation resistance.
 So simple way to say this is that people always prefer
 the money most resistant to inflation.
 That's a nice definition of scarcity in the context.
 The money is, if you were to measure it,
 the resistance to inflation.
 So how hard is it to artificially increase the supply
 of the thing? That is the hardness of money.
 And that's why gold is hard money.
 Because alchemy is hard.
 That's right, because no one cracked the alchemy,
 so gold became money.
 So that's such a nice clean explanation of what is money
 with the five elements and gold ultimately won out
 because of the last piece of scarcity.
 That's right.
 And to get to maybe dig a little deeper there.
 So scarcity, we commonly think of scarcity
 as strictly a supply property,
 where if there's not much of something, then it's scarce.
 But it's not actually true.
 Scarcity occurs when demand exceeds supply.
 So when there's more demand than the supply can justify,
 the thing becomes an economic good
 and it establishes itself a market price.
 So there's more demand for the thing
 than the supply can satisfy.
 The unique thing about money as a concept at least
 is that demand always exceeds supply.
 There's never enough money to satisfy everyone, right?
 Because another definition for money,
 it's the most marketable good.
 So it can be traded for any other good service
 piece of knowledge in the marketplace.
 So humans being what we are, we're never satisfied, right?
 We always want more of something, whatever it may be.
 So money as the ultimate token of obtaining that something
 is always scarce as a concept.
 But the problem with money is that if you can,
 as you alluded to, easily increase its supply,
 then all of a sudden you can compromise
 the scarcity of it over time
 and you can rob people through inflation.
 So that's why the market's settled on gold as money.
 And robbing is reallocating the value that I,
 so essentially the one property,
 like why scarcity is important
 is it adds a lot more friction to the reallocation.
 Like through essentially violence or implied violence.
 Well, it prevents it through cost of extraction too.
 So if you want to go out and dilute gold holders today,
 you have to go out into the world and mine gold.
 It's a very expensive process.
 That process tends to find equilibrium
 where production cost equals the market value of gold.
 So if market value is $2,000 an ounce today of gold,
 its production cost is gonna be around there.
 That's the natural market equilibrium.
 So that way gold miners cannot just dilute people over time.
 Whereas you look at something like fiat currency,
 which we're jumping ahead a little bit,
 but its production cost is zero.
 So there's a reason the market value of fiat currency
 historically has always converged to zero
 because its production cost is near zero.
 So the extension to that question might be
 how did we get from gold to paper currency?
 And again, this is rooted in the properties of money.
 As good as monetary metals were and as good as gold is
 as money at holding value across time,
 it's rather limited in terms of portability.
 It is not as useful for moving value across space.
 This is another definition of money, by the way,
 a social device for moving value across space and time.
 So to rectify this technological shortcoming of gold,
 we introduced, first of all,
 the custody of gold was gradually centralized
 into more, into fewer and fewer warehousing operations.
 This is because there are economies of scale associated
 with using gold as money.
 And that if you centralize the custody,
 the warehouse owner can then issue a paper receipt
 called a warehouse receipt for that gold.
 And then market participants can trade that paper
 as if it's good as gold.
 And everyone has an option at any time
 to go and redeem real gold from the warehouse.
 So that system works until the problem with it
 is that it introduces the need to trust the custodian.
 So it's introducing counterparty risk
 in the form of the custodian.
 And now should that warehouse choose to increase the supply
 of paper notes to gold beyond its supply.
 So if it's got three tons of gold
 and it issues six tons worth of paper receipts,
 all of a sudden it's participating in a fraud.
 It's basically lying.
 It's representing that it has more gold
 than it actually does.
 And that is the pathway that we got into banking
 and central banking is we needed a convenience mechanism
 to rectify the portability shortcomings of gold.
 We needed to be able to move value across space, right?
 Gold was doing a great job at moving value over time,
 but not space.
 Paper currency gave us the ability
 to move value across space,
 but it introduced this attack vector
 for warehouse operators, which became banks,
 which became central banks to modify the supply
 to suit their own political agendas.
 Added the snooze button.
 That allows you to just do a little fraud first.
 To get something for nothing.
 Just a little bit at first.
 Just this one morning, just a little bit.
 I mean, I don't know if you can speak
 to the birth of a fiat currency.
 Is there some interesting characteristics
 to those early steps that created it?
 Like could it have been averted?
 Or is this the natural progression of governments?
 You know what's funny is that central banking
 was initially designed to be the custodian of gold, right?
 So they were going to custody the gold,
 issue paper on top of it,
 and then they would maintain,
 you could trust the public stamp effectively.
 You could trust that the central bank
 had as much gold on reserve as they said they had,
 and they were supposed to be the trustworthy institution.
 So we went from placing our trust
 in a free market game theoretic process,
 or trusting gold,
 and we began trusting this institution instead.
 That institution would not have arisen
 if the portability of gold was really high.
 If we could have somehow sent gold
 across a telecommunications channel,
 there would have been no need for a central bank.
 Everyone could have custody their gold
 in any information-bearing medium, frankly,
 and they could beam it around the world at any time.
 So this whole institution itself
 is rooted in a technological shortcoming of gold.
 So I think it's, another way to think about that
 is maybe had there been all the gold in the world today
 fills two Olympic-sized swimming pools,
 all the gold mined throughout all of human history.
 So there's not a lot, right?
 What if there had been just like way more?
 There'd just been, I don't know,
 20,000 Olympic swimming pools worth?
 Portability wouldn't have been as much of an issue, right?
 We could have, and this is to say,
 assuming gold was still the most scarce metal
 in all these things,
 portability would have been less of an issue.
 We would have had less dependence
 or need for a central bank.
 So I think it's kind of idiosyncratic
 in that we just happened to end up here on this planet
 with a certain amount of gold.
 It best satisfied the properties of money.
 And a certain amount of humans geographically dispersed
 such that portability had certain properties
 that you wanna achieve for humans in the geographical space
 to be able to be exchanged values.
 It became more of an issue as we globalized, right?
 As it became more of a global society,
 we needed money that could move across space really fast,
 so we could trade in international capital markets.
 So that drove the central bank
 to become the dominant institution of the world.
 And if you follow the flows of gold throughout history,
 I've been watching this documentary on World War I
 and World War II on Netflix.
 I think it's called World War II in Color.
 Oh yeah, that's really good.
 So good.
 And when I say gold has been the governor of governments
 or gold is geopolitical money,
 like it is the base layer operating system,
 has been the base layer operating system
 for analog society.
 So it's always been about who controls the gold,
 is who makes the rules.
 And in that context,
 that's why Bitcoin is so interesting
 because it is the disruptor to
 this base level operating system
 that's functioned for all of human history.
 I think this is a good place to ask.
 We asked the what is money question.
 What is Bitcoin?
 That's a question as complicated as what is money.
 I think if you get a general understanding of money
 from a number of angles
 that we could say Bitcoin is the most superior
 monetary technology that has ever existed.
 So one of the most superior implementation
 of the ideas of money that you talked about,
 you talked about money as speech,
 you talked about money as an idea.
 We talked about money as sovereignty.
 Yeah, so we're attaching the concept of money
 to your point, to whatever tool best satisfies
 those properties of money
 or best renders those services we need for money.
 And as you said, you're using the word tool
 and technology interchangeably here.
 Yes, yes.
 And another thing to think about here is that
 we think often in terms of goods or services,
 but actually everything is a service.
 So it's not the physical properties of this pen
 that I find valuable,
 it's the services that it renders to me
 that I want to write a letter.
 This serves me by allowing me to lay ink on paper
 and communicate information.
 So value, humans attach value,
 as we alluded to earlier, to services, not goods.
 So the properties or the services that money renders
 that human beings value are those five properties,
 visibility, durability, recognizability,
 portability, scarcity.
 Metals best satisfied those services historically,
 but Bitcoin as the most superior monetary technology
 in human history essentially perfects them.
 It's as close to perfection as we've ever been.
 So in terms of divisibility,
 each Bitcoin can be broken down
 into 100 million subunits called a Satoshi.
 If that divisibility were ever a problem,
 which actually there was a question that came up recently,
 if you divide the world population
 by the total supply of Bitcoin,
 you end up at like 0.3 Bitcoin per person,
 call it 300,000 Satoshis per person.
 What if that was not enough to facilitate economic activity?
 And the answer to that is Bitcoin can soft fork
 into further divisibility.
 So if Bitcoin ate all the money in the world
 and the average Bitcoin or wealth
 will say 300,000 Satoshis each,
 but that wasn't divisible enough maybe to buy coffee
 and do all these day-to-day transactions,
 what would happen?
 It would increase its divisibility.
 So Bitcoin's perfected divisibility,
 the divisibility of money,
 lets us transact across scales.
 We can buy coffee or we can buy a house.
 Durability is an interesting one.
 So clearly something like gold is very durable.
 It's resistant to degradation over time.
 Bitcoin is just pure information,
 but it's stored in a distributed format.
 So information stored in a distributed fashion
 tends to be virtually infinitely durable.
 The example I like to give here is something like the Bible.
 The Bible is just distributed information.
 It's stored everywhere and nowhere, so to speak.
 And for that reason, it has outlasted empires.
 And Bitcoin's similar.
 You can't make changes to it unilaterally.
 But to make explicit the ways in which it is not durable
 is the fact that it relies on computing infrastructure.
 Like it needs computers.
 So if you were to destroy all the computers in the world,
 it needs mechanisms that store and transfer information.
 That's right.
 And so you could attack it.
 I mean, you could attack gold in the same kind of way,
 I suppose, to the physics,
 but it's probably easier to destroy all the computers
 in the world than it is to destroy all the gold in the world.
 Maybe not, I don't know.
 Anyway.
 Yeah, you're right.
 Maybe, I'm not sure which one would be harder to destroy.
 But the other thing is there's a dynamic incentive.
 So every time you destroy Bitcoin miners,
 you're creating incentives for anyone else
 with access to electricity to mine
 because you're making the algorithm easier.
 Yeah, so the destruction is difficult
 because of the decentralized nature of the whole thing.
 And the difficulty adjustment.
 Yeah, so you're gonna have to use nuclear weapons
 and cover the whole globe.
 But anyway.
 And by then, we've got much bigger problems than money,
 right?
 That's right.
 So, okay, so that's durability.
 So portability, Bitcoin's pure information.
 It can move at the speed of light.
 Can't get much faster than that.
 Recognizability refers to the ability to verify
 the veracity of the money or its authenticity.
 So you can actually, when we used to transact gold,
 there were time-honored techniques for verifying
 that it was gold and not gold-plated lead,
 for instance.
 This is where we get the term sound money.
 A gold coin made a very particular sound
 when dropped from a certain height.
 You know, you've seen people buying coins.
 These are all techniques for testing
 the authenticity of gold.
 And with Bitcoin, we have something unique
 in that if you're running a full node,
 you can verify that the Bitcoin is Bitcoin, right?
 It cannot be tampered with.
 It cannot be faked.
 And in addition to that, as a node operator,
 you can audit the total supply of Bitcoin at any time,
 which is unlike any money in history.
 So you know with full certainty,
 if you're holding 1,000 Bitcoin,
 you have 1,000 out of a possible 21 million forever.
 You have a guaranteed fraction of the total supply.
 Yeah, so a full node contains information
 about every transaction that's ever been had
 so you can figure out, yeah, I mean,
 all the truth of this money is all right there.
 Yeah, it's like a fractal constituent
 of the whole network, right?
 The whole Bitcoin blockchain is comprised in a node too.
 Not the proof of work piece,
 but the entire transaction history.
 And so that's unique as well.
 And that's what makes Bitcoin the ultimate store of value
 is that you know with certainty what the total supply is
 and will ever be.
 And you know that your share of that supply is fixed.
 It cannot change.
 It can only improve actually.
 If someone loses, you know,
 if the Satoshi stash is truly gone forever,
 the million Bitcoin never moves,
 then we're talking about 1,000 Bitcoin
 out of 20 million instead and so on and so forth.
 As more people lose access to their Bitcoin,
 they're basically making a contribution to everyone else.
 It's anti-dilutive.
 And there's certain properties of Bitcoin
 that are sort of a little bit more into the details
 that ensure that the full nodes,
 like the size of all the transactions that ever happened,
 at least currently can be stored
 in a single computer, for example.
 So it doesn't blow up too quickly.
 That's right.
 But you know, there's arguments that that's not necessarily,
 you can make arguments for that to be a very nice property,
 but you can also say that there's like drawbacks to it.
 That's hence the block size debates
 and all those kinds of things.
 Yeah, that was the Bitcoin cash civil war, right?
 Was that particular piece.
 Yeah.
 And you know, extensively they were saying,
 oh, we need more transaction throughput
 to buy more coffee and do more transactions.
 But what they were actually doing
 was increasing the size computing power necessary
 to run a full node,
 which would have theoretically
 compromised decentralization.
 So yeah, but it would in theory,
 in theory, it would allow you to have
 much more transactions.
 That's right.
 But the drawback, it would,
 because of no longer can be stored
 in a single computer, personal computer,
 then it naturally leads to decentralization.
 Same kind of thing we see with gold.
 Which would have compromised its survivability.
 Right.
 So what else is there?
 The last one, which leads straight into this one
 actually is the most important one of money,
 which is scarcity.
 And that you need to know the supply is fixed
 and safeguarded from counterfeiting and inflation,
 which counterfeiting and inflation are the same thing,
 by the way.
 Counterfeiting is criminalized inflation.
 Inflation is legalized counterfeiting.
 So central banks today,
 when they say they're printing money,
 they're not, they're counterfeiting currency.
 That's a very important part.
 And Bitcoin, as I've argued in some of my writing,
 is more than just an invention.
 It's actually the discovery of absolute scarcity.
 And that we have unveiled a property of money
 that we will only discover once.
 And it's got really major ramifications
 for the world at large.
 So with gold, for instance, as we've covered,
 it became money because it was the most relatively
 scarce monetary metal.
 Right.
 Its supply was hardest to increase over time.
 However, if we could somehow flip a switch today
 and make everyone in the world go out
 and start mining gold,
 we could increase the supply much more quickly.
 We could, you know, it's historic inflation rates,
 about 2%.
 We could double that pretty quickly.
 Bitcoin, with Bitcoin, it is not possible.
 So no matter how much effort and energy and capital
 and operational expenditure we pour into the mining network,
 we cannot deviate from its fixed
 and diminishing supply curve from between now
 and the last Bitcoin being mined in 2140,
 because of the difficulty adjustment.
 It's constantly, it's adapting to human action, actually.
 So the harder we pursue it, the more that it recedes.
 And then the less we pursue it,
 the more available it makes itself.
 And this is, it's a real major breakthrough
 because it's the closest thing to perfect information
 we've ever had in an economy.
 And perfect information is this,
 it's a theoretical but unattainable state of the market
 where all market actors have all the relevant information
 about everything so that they can compete
 as efficiently as possible.
 And in the state of pure information, we have,
 I'm sorry, perfect information, we have perfect competition.
 And in perfect competition, we maximize wealth generation.
 So we're competing as freely as possible
 from coercive and violent impediments.
 And so I think Bitcoin in that sense
 is going to pull the world closer to a state
 of perfect competition than we've ever been before,
 which would increase wealth generation
 to an extent we've never seen before.
 Many of the things you said about Bitcoin
 also hold for other cryptocurrency technologies
 that followed after.
 Can you say something to why you think Bitcoin
 is the superior technology
 from a pragmatic truth perspective
 than say Ethereum, but also other crypto,
 like Bitcoin Cash, like other hard forks of Bitcoin
 and maybe things that might yet to be invent,
 tools yet to be invented.
 Yeah, so this is a good point of argument
 because a lot of people have countered me and said,
 Bitcoin cannot be absolute scarcity
 because you can fork it and create something
 with the same properties as Bitcoin
 or potentially even better properties, right?
 You create something with a deflationary monetary policy.
 That's what Bitcoin Cash was actually.
 It forked Bitcoin with all of the same properties
 except for the block size that we alluded to earlier.
 The problem is that money is valued.
 Again, it's the good with a configuration of demand
 that is predominantly marketability.
 So it is valued based on its liquidity.
 That is how many other trading partners
 are there in that monetary network.
 So it is a network valued
 because of its liquidity and network effects.
 So any new entrant into the market for money
 is incentivized to always choose the money
 with the deepest liquidity and the most network effects.
 This is why money has tended to be a winner take all market
 because it's essentially a single purpose tool, right?
 It is a tool for,
 if we consider that tools are time-saving devices, right?
 The shovel lets you dig more holes per man hour
 than you can with your bare hands.
 Money is a tool, there's yet another definition of money
 that lets us calculate, negotiate
 and execute trades more quickly.
 So that function tends to coalesce towards one solution.
 And so the short answer would be that for the same reasons,
 quantifiable reasons, right?
 Like inflation resistance and liquidity and network effects
 that we have one analog gold,
 we're only likely to have one digital gold.
 And I think the Bitcoin cash fork
 proves that out empirically.
 It's a good case study because-
 Well, it's a fork case study, right?
 But okay, so that's really well put.
 So like gold was sticky.
 Once it was accepted, the network effects,
 the winner take all took over.
 And here's a fundamentally different kind of like analog
 versus digital is a leap in technologies.
 That's right.
 And you're suggesting that there may not be,
 there's unlikely to be other leaps of that kind
 into a whole nother kind of space of technologies.
 I would argue that Bitcoin
 it's kind of like the ideological synthesis of gold,
 taking the monetary properties of gold
 and combining them with the internet itself.
 And in doing so it has essentially perfected
 the properties of money, right?
 You can't get more divisible, durable, recognizable,
 portable or scarce than Bitcoin.
 So Satoshi has kind of, he left no design space
 for a superior technology to intercede
 and out compete Bitcoin at this point,
 now that it's established liquidity in the network.
 Far superior technology, right?
 Yeah, but it's a combination of the tech itself
 and the social layer that is coalesced to it.
 You can't separate those two out.
 That's right.
 They're all connected and then the political as well.
 I mean, but the portability, for example,
 that's another way to phrase that is the, what is it?
 The scaling.
 So the number of transactions,
 that's the limitation for Bitcoin
 that many argues a feature, many argues a bug.
 You have a bunch of cryptocurrency technologies
 that are able to achieve much higher,
 much faster frequency of transactions,
 much more transactions, all that kind of stuff.
 What are your thoughts on that?
 The low level of transactions that's possible with Bitcoin,
 do you think that's a feature?
 Do you think that's a bug?
 Necessary for security, actually.
 And even these other crypto assets that settle more quickly,
 they settle with less assurance of finality.
 So Nick Carter has a great piece on this actually called,
 the settlement assurance is stupid.
 It's really good where the gist of it is that
 there is more work being done in each block of Bitcoin
 that it is less vulnerable to reversion.
 So it's giving you higher degrees of assurance
 that your settlement or your trade has occurred with finality
 whereas other blockchains are much more vulnerable.
 And again, with Bitcoin,
 the evolutionary path of money with gold
 is that it was first used as a collectible.
 It then became used as a store value.
 After it had stored enough value,
 it began to be used as a medium of exchange.
 And then finally, when it was used widely enough
 as a medium of exchange, it becomes a unit of account.
 We actually start to think in the money.
 Bitcoin's following a similar path.
 So started out as kind of a collectible.
 Today, I would argue it's a store value,
 one of the most effective store value we've ever seen.
 So that evolutionary path that Bitcoin's following
 is similar to gold.
 First a collectible, today is store value.
 To be an effective store value,
 it has to optimize for supply cap.
 That has to be the first,
 and this is all Bitcoin really needs to do
 to be successful, by the way.
 Exactly what it's been doing for 12 years,
 virtually flawlessly,
 which is keep creating a block every 10 minutes
 and keep enforcing a supply cap of 21 million.
 As long as those two things hold,
 it is sound money, the ultimate sound money,
 the most inflation resistant money there's ever been.
 It's actually completely immune.
 It's taken unexpected inflation to 0%.
 We know with perfect certainty
 what Bitcoin's supply will ever be.
 For it to be used more broadly as a medium of exchange,
 it can't make trade-offs at the base layer
 to increase its portability, for instance.
 Even though portability is maybe kind of a misnomer
 because Bitcoin has extremely high portability,
 just doesn't have extremely high transaction throughput.
 So we could say you can move it pretty quickly
 anywhere in the world as long as you're willing to bid up
 for the block space,
 but you can't satisfy all the world's economic volume.
 You can't do 300 million transactions per second
 like you can on a centralized database like Visa.
 But Bitcoin needs to be this,
 it has to be a store value first
 before it can be a medium of exchange.
 So it has to protect the supply cap first
 before making any trade-offs for that.
 And I would argue that that's why Bitcoin is so rigid,
 is that it's optimized for survivability
 and optimized for that supply cap.
 And it's pushing experimentation and other features
 that would increase its transaction throughput
 to higher layers.
 So I think Lightning Network
 is something that's very interesting.
 It's still early, but there's a lot of throughput
 already being used on the Lightning Network.
 And it makes some slight trade-offs
 in terms of the trust minimization of Bitcoin.
 You end up trusting these smart contracts
 instead to move the Bitcoin,
 but you pick up nearly unlimited transaction throughput.
 So that's how, and that's how biology evolves.
 That's how the internet evolved.
 It evolves in layers.
 So I think Bitcoin, you can sort of conceive of it
 as the latest layer to the internet.
 And it's one that preserves this store value property
 better than any asset we've ever had.
 Let me ask sort of a critical question of,
 if you're wrong about your statements about Bitcoin,
 you find out years from now that you were wrong,
 what would that look like?
 What would be the things
 that make you realize you were wrong?
 Likely ideas or crazy out there ideas?
 Do you think about this kind of stuff?
 All the time.
 Because you speak very confidently about Bitcoin.
 And one of the things, let me put it this way.
 I think certainty,
 I feel like that's like a stoic statement.
 Certainty leads to ruin, something like that.
 Like certainty I think is an antithesis to progress often.
 And especially in your writing,
 but this is true for the Bitcoin community,
 there's a certainty about the Bitcoin.
 And that makes me very skeptical,
 no matter how good the ideas are.
 Whenever things are good,
 this might be the Russian in me.
 I think like, what are the ways this is gonna go wrong?
 So what do you think are the ways this might go wrong
 or you're wrong in your conception of what Bitcoin is?
 Yeah, so science evolves via negativa,
 meaning that we're not proving hypotheses.
 And that's what becomes the body of science.
 Science is whatever is left over as we disprove hypotheses.
 Whatever we can empirically through experimentation disprove
 gets discarded and whatever remains,
 whatever theory remains it hasn't been disproven
 is science effectively.
 This process is similar to market actors zeroing in
 on a store value.
 They're experimenting with different forms
 of storing wealth across time.
 Some do better than others
 and eventually everyone ends up on the one that is best.
 That's what gold was.
 In terms of understanding Bitcoin,
 I look at it as a similar approach.
 And then I'm actually,
 that is the main question I'm asking myself is,
 how do you stop this thing?
 How do you turn it off?
 How do you end it?
 If you're a nation state particularly
 who has the most to lose in this transition,
 what is the attack vector by which they neutralize Bitcoin?
 I mean, that is the $250 trillion question.
 And I've spent five years
 thinking about this thing very deeply.
 I've read everything on monetary history
 I can get my hands on.
 The general thought of how it has stopped,
 and this is the snag point that a lot of people get to
 in their explorations down the rabbit hole
 is they just say the government will never allow it.
 And that becomes kind of their bottom.
 It's like, all right, Bitcoin's interesting,
 it's superior money, blah, blah, blah,
 but the government will never allow it.
 And they say-
 Was Ray Dalio, did he say that?
 Dalio was currently stuck there, yeah.
 So Ray Dalio said that Bitcoin seems to be too promising.
 If it is in fact as promising as it looks,
 governments are going to,
 I don't forget what the exact quote is,
 but not allow it.
 Ban it.
 Yeah.
 Governments will ban it.
 So how do you get Ray Dalio unstuck from your perspective?
 Well-
 And how do you get unstuck from that idea that governments,
 will governments, how do you prevent governments
 from stopping a thing that threatens centralized power?
 Well, Bitcoin is an idea.
 So governments that are really good at fighting
 centralized threats to their power, right?
 Whether that's a currency counterfeiter
 or a competing nation state or business they don't like,
 or an individual they don't like, you know,
 they can kill them, they can throw them in jail,
 they can use any number of course
 of her violent tactics to suppress it.
 But how do you point a gun at an idea?
 How do you coerce an idea?
 And that's, you know, there's some anecdotal history here
 where there's the PGP case, which in the United States,
 the court was trying to classify it as munitions.
 When we were shipping this pretty good privacy software
 overseas, government wanted to classify it as munitions
 and restrict that exportation.
 But, and this was a circuit court case precedent
 when the PGP attorneys actually printed out the source code
 on paper and presented it as evidence in the court,
 all of a sudden it became protected under freedom of speech.
 And that it's just code is speech, code is language.
 And therefore, at least in the United States,
 it's protected under the first amendment.
 I think a government ban would be largely unenforceable,
 frankly on Bitcoin, being that it's pure information.
 If you suppress market actors from using it
 in one jurisdiction, you're just creating incentives
 for them to go elsewhere.
 And you're actually increasing the incentive
 for other jurisdictions to be favorable towards it
 because then they can create, they get to benefit
 from the tax revenue and the businesses and the innovation
 that's occurring in and around Bitcoin as a result.
 So you don't think if a particular central bank,
 like in Europe or United States, bans it,
 not maybe using those terms, but in some kind of way,
 you think that provides a really strong incentive
 for the other big players to enable it?
 That's right.
 And they're more likely, by the way,
 and governments know this, by the way, too.
 The other thing that causes the government
 to shoot itself in the foot is that if they ban something,
 they draw a lot of attention to it.
 People are smart.
 I mean, people ask why, why would a government ban it?
 Why can't I use this?
 So that's kind of typically be the last arrow
 in their quiver.
 They may try to ban it if Bitcoin really starts
 to monetize very quickly and the power structures
 that they impose today start to dissolve
 faster than others might think they will,
 than they might try and ban it.
 But I think that ban will be largely unenforceable.
 They're more likely to tax it, which they already do tax it.
 They're likely to increase taxation of it.
 They're likely to try and make it more white market
 by actually tracing Bitcoin, seeing who has it,
 attaching identities to Bitcoin ownership,
 and making sure that they're getting their pound of flush
 on all the transactions it results in.
 But I don't think, the other thing about this is,
 so we saw the internet outcompete intranets
 in that we'd say that open source networks
 tend to outcompete closed source networks.
 And there's a really good reason for this.
 And it's because in a closed source network,
 there are costs associated with defending
 the network itself.
 So you have to, the network owners,
 the owners of the closed source network
 have to expend resources protecting it from competitors,
 and they have to expend resources imposing its rules.
 Because they're not voluntarily adopted rules,
 so you actually have to impose these rule sets.
 Whereas an open source network,
 which is something much more akin to capitalism
 in its pure sense, these are voluntarily adopted rules.
 So all market participants have agreed
 and consented to this rule set.
 So there's no enforcement costs,
 and there's no turf protection,
 because anyone can freely enter or exit the open network.
 For that energetic reason,
 I think open networks outcompete closed networks typically.
 And in the digital age,
 that's why I think that's why internet outcompetes intranet,
 and that's why open source networks
 are gonna eat closed source networks.
 So what Bitcoin would be in that lens
 is the ultimate open source monetary network
 devouring closed source central bank monetary networks.
 And I just don't see how there's no possibility
 of unilaterally stopping Bitcoin or destroying it.
 So then they're more likely to regulate or tax it.
 And again, the other fallacy here
 is that a lot of people tend to think of governments
 as these singular indivisible entities
 that just move under one plan,
 but in reality, it's a lot of people, right?
 And a lot of people with loosely coupled interests
 and agendas and whatnot.
 Regulators and others,
 whether wearing their citizen hat,
 they're gonna see this thing monetizing,
 they're gonna be on the front lines of trying to regulate it,
 trying to control it.
 And I think what's likely to happen
 is they're gonna start to adopt it,
 to buy some of it, even as an individual,
 or possibly even ultimately at a central bank
 or sovereign wealth fund level
 as an insurance policy against its success.
 And once you start to acquire something
 and then you have a vested economic interest
 in its monetization,
 I think it kind of dissolves any of the power structures
 that are arrayed against it from the inside.
 So I've written a lot about this
 in a new series called Sovereignism,
 which is based loosely on a book
 called The Sovereign Individual.
 And that's the general thesis
 is that microprocessing technology
 would devour our organizational models,
 the most important of which is the nation state.
 So I think we're going into this world
 where coercion and violence is just much less rewarding.
 The economics of violence are declining
 because of the low cost of protecting property.
 You can now protect your monetary property in Bitcoin
 at orders of magnitude less cost
 than is necessary to run a banking network.
 So it changes the way we organize ourselves.
 And again, zooming back to gold
 as kind of the original governor to governments,
 where if they manipulated the money,
 gold would leave their country.
 That's why governments have taken relatively concerted action
 to go off of the gold standard.
 There's a great book on this called The Gold Wars
 that outlines how governments have been waging
 a cold war against gold for the past 50 years.
 Bitcoin sort of renews hope
 for that free market governor of governments.
 And that is this digital gold
 that governments cannot stop or co-opt.
 So I think it's something,
 that's why I think it's such a big deal
 is that it is changing,
 it's a new useful fiction, you might say,
 a useful fiction that's superordinate to the mythology
 of the nation state and government
 as the dominant institution in the world.
 Well, I hope you're right that all forms
 of centralized power start breaking apart naturally.
 So governments, the more and more power
 is given to the individual, whatever the technology is.
 And Bitcoin seems to be a promising technology
 that empowers that, enables that.
 That seems to be the trend.
 And that's a promising trend
 from at least from a perspective of somebody
 who values this particular biological meat bag
 that's full of consciousness.
 I think Bitcoin is exposing the greatest scam
 in human history, which is political authority.
 Like who gives anyone the right to be politically,
 have political authority over anyone else?
 People should be free to adopt the rules and systems
 and tools that best suit their needs.
 And that arc of history we covered earlier
 where as socioeconomic systems have become more favorable
 towards individual sovereignty,
 the more wealthy we have become,
 the more we have given the individual,
 we've maximized individual choice,
 the more wealth that society has created
 and the more it has out competed,
 the systems that have come before it.
 The latest would be capitalism triumphing over socialism.
 Before maybe we eat, you are in Texas,
 you brought over some brisket.
 Before we may be indulged in that,
 let me bring up one quick topic and then we'll take a break.
 And the topic of what some may term
 the toxicity of the Bitcoin community.
 You've written that Bitcoin toxicity is tough love.
 Do you wanna break that apart a little bit,
 sort of the idea, the philosophy of the toxicity
 that seems to be present in part in the Bitcoin community?
 Yeah, we were talking about this a little bit
 before we recorded and I've been through the gauntlet
 with Bitcoin toxicity as well.
 I came into this space professionally in 2017.
 I was originally running
 a multi-strategy crypto asset hedge fund.
 And my initial investment thesis on the world
 was that Bitcoin was a big deal,
 but there were all these other exciting coins and projects
 and ways the technology was going to be used.
 And that view of reality met this immune,
 I guess you could say as an ideological immune system,
 this Bitcoin toxicity,
 and that it's kind of a filter that's trying to catch bad
 or useless or even scamming ideas
 that this space is very well known for.
 As we've touched on today, Bitcoin, in my opinion,
 is this world shattering innovation,
 but it's in a sea of the most scammy stuff ever.
 People, anybody can go and create a coin.
 So you can go and launch one immediately online
 and you can throw up a website, an advisor page,
 post a white paper talking about
 how great your technology is gonna be
 and how it's gonna change the world.
 And then you can raise $30 million in Bitcoin
 or Ethereum in 30 seconds kind of thing.
 So it's drawn in a lot of this scam artistry, you might say.
 And I think people living through that,
 because there is this natural predilection for people.
 When they first come into Bitcoin, you're excited about it.
 Then you get lost in the shit coin universe.
 And then just looking at the market success of Bitcoin
 versus, and when I use the word shit coin,
 I'm just- You say with all the love in the world.
 All the love in the world.
 I guess you could call me a toxic maximalist in some ways.
 Although I consider myself a freedom maximalist,
 not a Bitcoin maximalist.
 Yeah, I saw that line.
 That's a good line.
 Bitcoin, tracking the market success of Bitcoin
 versus alternative crypto assets,
 the signal is very clear
 that Bitcoin has outcompeted all of them.
 So I think that Bitcoin cultural toxicity has evolved
 as an immune response to those bad ideas,
 which is actually, if you think about it,
 kind of is a tough love, right?
 You don't want new entrance to the space
 to get lost in shit coin jungle and learn the hard way,
 the way many Bitcoin maximalists have
 that the real innovation is Bitcoin.
 But like an immune system, I think it can also go too far.
 And so I think it's useful when it is defending the space
 from false narratives, we might say,
 but it becomes detrimental when it's attacking people
 that are inquiring about Bitcoin
 or people that are approaching Bitcoin
 with a good spirit and good intention and a desire to learn.
 Because then at that point,
 it's actually impeding the free flow of ideas,
 which the example,
 and your clip that was totally taken out of context.
 And then you're literally just saying,
 I'm here to learn and contribute.
 I think I've got some stuff to do.
 And then people attack that.
 Like that doesn't make any fucking sense.
 It's like you're attacking someone who's approaching it
 in a good spirit and asking questions.
 Yeah, and I think sometimes talking about it,
 the toxicity in the Bitcoin community as an immune response
 has a negative effect of giving it a pass.
 Because like it almost says,
 look, it equates it with the human immune system,
 which seems to do a really good job.
 And so you could say that the toxicity
 has a lot of features in the sea of fraudulent projects
 that steal money from people.
 It's really useful to make sure that you give people
 the harsh truth about who is and isn't a scammer.
 You have to take it apart,
 take it away from that metaphor of the immune system
 and look at basic human nature.
 And human nature can go to some dark places,
 which is it's sad to say that some people,
 maybe many of us can enjoy for its own sake,
 the toxicity, the mockery, the derision.
 And you stop being part of the immune system
 that makes a successful idea propagate
 and start being a sort of a destructive virus yourself.
 And that's something I think about
 because I am new to this particular immune system,
 but I've explored other immune systems.
 And I think you understand this world much better than me,
 but I tend to prefer sort of love
 as a mechanism for spreading ideas
 to err on the side of love and kindness.
 And almost like open-mindedness
 in a way where you're constantly lowering yourself
 in the face of other ideas,
 constantly questioning yourself.
 But I think I understand that
 that might be more applicable in certain contexts,
 like maybe in the space of science or something like that.
 But in the space of Bitcoin as it currently stands,
 there's so many people that are trying to scam others
 out of their money that the kind of harshness required
 is different.
 Nevertheless, I do want to put it on people like yourself
 and others who I know you wouldn't consider yourself this,
 but you're one of the faces or leaders in this space
 to call people out a little bit,
 to inspire them to be more loving, I suppose.
 But it's difficult
 because you wanna walk that line carefully.
 You don't wanna be too loving and open-minded.
 Otherwise your brain falls out.
 I get it.
 It's a difficult balance to walk.
 It is subtle and it's nuanced and it is difficult to walk.
 And I think that, that's why I try to say tough love
 because when we're young, we may have certain ideas
 about the way we want our life to go,
 but then maybe our parents
 are not letting us do certain things.
 And we think they're, I know when I was a kid,
 I wanted to get my, when I was in fifth grade,
 I wanted to get my ear pierced.
 My mom wouldn't let me do it.
 And I was, oh, come on, mom.
 Thought it was so cool.
 And then two years later, I'm like, thank you, mom,
 for not letting me get my ear pierced.
 I think it comes from a place of good intention
 that they are actually,
 they have asked themselves that question, right?
 That they've been inquiring
 in why not this crypto asset or this crypto asset.
 And they've done the exploration.
 They keep coming back to Bitcoin
 and they've seen people being taken advantage of.
 But to your point, it's like it can,
 this tough love can become detrimental,
 just like the immune system can become detrimental, right?
 It can overreact and it can actually harm the human body.
 So I would say that it's such a tricky and nuanced topic
 that even biology hasn't figured it out, right?
 A lot of people have autoimmune diseases.
 And then there's the other thing that we have this natural,
 I agree with you about love.
 I think love is like the deepest value.
 That's a whole nother philosophical thing,
 but it's, we're biologically programmed
 to pay more attention to things
 that are adversarial or harmful, right?
 That's part of the, us protecting the meat suit, so to speak.
 So there is some maybe better delivery method
 by being a little bit toxic to really get the point across.
 Like, hey, don't get lost over here.
 These things can hurt you.
 Really try to focus on Bitcoin,
 but the toxicity of that message,
 I guess it increases its ability
 to penetrate the individual, but it can also go too far.
 So it is very-
 It's interesting, but I,
 almost to push back a little bit,
 the toxicity is a funny word.
 I think maybe another way to say it is,
 I brought up like Christopher Hitchens
 and somebody who like, okay,
 you might say is toxic or something like that,
 because he's basically an intellectual powerhouse
 who's also a troll.
 So he's constantly, it's like guerrilla warfare
 in the space of ideas.
 He's very harsh in his disagreements and criticisms,
 but it's done with incredible grace and skill and poetry.
 So-
 We could use more of that.
 We could use more of that.
 So toxicity just like,
 these are just words.
 They can mean a lot of different things,
 but disagreement doesn't have to be done with love,
 but it should be done with skill if it's to be effective.
 So there's a lot of ways to be effective in guerrilla warfare,
 but you wanna learn how to shoot
 or whatever the weapon you're using and to do it well.
 Some people do it better than others.
 And it's worthwhile to learn to do it well.
 Again, I prefer love, but even love,
 just because you think you're communicating a good idea,
 which you very well may be,
 doesn't mean it also doesn't require skill
 to do the communication well,
 whether it's disagreement and harsh
 or more agreement and loving and so on.
 Yeah, I think very fundamentally that all of our decisions,
 we alluded to earlier that every decision
 is an expression of value or every action we take.
 They ultimately come from fear or love.
 Fear would be something much more in the biological domain
 where it's like we're trying to protect ego,
 we're trying to behave selfishly.
 This is the domain of sin.
 I don't know all the sins, gluttony, greed, sloth, wrath,
 lust, pride, envy, these are all selfish behaviors.
 Whereas something like love is much,
 it's morally superior and that it's more selfless.
 I don't know that we can properly define love
 with words at all, but I would say
 maybe like selfless action could be
 kind of a generalization of it.
 And that way it is really hard to your point.
 It's hard to love in a world that has a lot of conflict
 that might make you fearful
 if you're really focused on your meat suit,
 but if you're focused on the bigger picture
 and you're focused on others and legacy and life
 that there is a way to do it.
 And that's why I actually think Christ,
 that is the highest moral aim, right?
 He met all of the vitriol in life,
 betrayal, hate, violence, he met it all with love
 and he met it with compassion.
 And that's why, regardless of if you believe
 that he actually lived or any of this,
 he is symbolic of the highest moral consciousness possible.
 And Carl Jung would say that
 that was a suitable alternative to psychoanalysis,
 was actually setting your moral aim higher
 and striving towards it diligently.
 So, I mean, I agree completely.
 We need more of that in the Bitcoin space.
 We need more of that in the world, frankly.
 In the world, yeah.
 And these things, they're all intertwined.
 We touched on the beginning, all of us get to decide,
 but the world does influence kind of
 if we adopt fear or love.
 But it takes, I don't know, it takes good systems
 and it takes, I guess, good leaders to set an example.
 Yeah, I do believe that there's like individual people
 can have a ripple effect.
 So that's what I try to do, sort of embody the,
 I'm just one ant.
 But one of the things I have faith in is,
 I'm trying to do that more.
 I know this is a podcast,
 but I'm trying to do less talking and more doing.
 I've been disappointed in myself, if I'm being honest,
 how much talking I've been doing, you know,
 as opposed to like in my own private life,
 I live the thing I talk about,
 but I also haven't created much, you know?
 And I believe in the power of individuals
 that create stuff, like create an idea.
 Through those individuals that try to create something new,
 the world progresses.
 And hopefully there's more and more,
 more and more of those people.
 So you mentioned kind of people who,
 what the Bitcoin community may call scammers.
 I have a lot of passions in my life
 that I focus a lot of my attention to.
 You know, Bitcoin doesn't happen to be yet one of them.
 Bitcoin and cryptocurrency, you know?
 Glad you said yet.
 I'm always looking for things to really fall in love with.
 So how is a person like me supposed to figure out,
 I also happen to have a platform a little bit,
 and how am I supposed to figure out who is interesting,
 what is an interesting set of ideas and what are not?
 Because people are financially tied into
 a lot of the cryptocurrencies that we're talking about,
 certainly with Bitcoin.
 You know, their livelihood, their wellbeing
 is tied up to it.
 So it becomes much more emotional, much more personal.
 It's no longer purely an exploration of ideas.
 It's really almost like a threat on your property.
 Like it's a personal threat.
 It makes it very difficult to explore those ideas.
 So I understand it, but it makes it very difficult
 for somebody like me to just walk in and be curious.
 So how do I proceed in this difficult world
 and exploring this landscape and not give a platform
 to ideas that may harm others?
 I guess first I'd like to commend your forthrightness
 about this because I don't think many people
 try to walk that line necessarily.
 People, again, kind of the territorial imperative,
 they'll put whoever on, they'll help expand their reach.
 Oh yeah, that's true.
 Or say whatever needs to be said to expand their reach.
 So I think you're coming from a good place.
 I'll say that.
 There's a great piece written on the topic of scammers
 and scamming.
 I think it was by Goldstein.
 He wrote a piece called, Everyone's a Scammer.
 And it's sort of back to this, you know,
 general human proclivity to try and get something
 for nothing always, which again, it can be positive.
 It can be innovative or it can be negative.
 It can be trying to steal from people.
 That might be, I think that's a useful piece
 just to kind of see the crypto world through that lens.
 And that's how Bitcoiners are thinking all the time.
 They're by nature adversarial thinkers.
 So they're trying to minimize the need for trust
 in any situation and maximize verification.
 As far as sifting through the ideas,
 I guess this is back where the cultural immune system
 has some utility.
 Because there were times when I thought
 this particular crypto asset, you know,
 Augur was one I was really into,
 that it could facilitate prediction markets
 and prediction markets could make markets more efficient,
 et cetera, et cetera.
 But when that investment thesis basically met
 the cultural filter or immune system,
 it forced me to reevaluate my position,
 forced me to really look into it more deeply.
 And through that exploration,
 I realized that it would need to be built
 on Bitcoin to work basically.
 So, but it really comes down to like you doing your homework,
 but we can't all deeply evaluate every idea out there, right?
 Yeah, one of the things I struggle with
 was Alex Jones, for example, had dinner with him.
 I could tell that would be a very fun conversation,
 but like then I also understand that there's
 like consequences to that conversation
 that should be explored with care.
 And so you need to take on the responsibility
 of being a chef or the puffer fish
 and all those kinds of things.
 That said, just like you said,
 it's very difficult to know this ahead of time
 and I will probably make mistakes.
 And that's a shitty thing to have to live with,
 that I'm going to make mistakes and some of them very large.
 Like, yeah, I mean, I can imagine a bunch of different ways,
 but all we can do in this world
 is once we make the mistakes,
 we acknowledge those mistakes.
 Yes, learn.
 And learn.
 And also, I have to put this on the rest of us
 that you don't take one thing that a person did
 and then burn them at the stake for it.
 That you realize that we all make mistakes,
 that a particular mistake does not make the person.
 And this applies to taking stuff out of context
 over hundreds of hours of talking,
 but it applies to actual like in context, big mistake.
 Okay, so what if I murdered somebody at some point?
 Just give me a break.
 No, there are some things that are too far, of course,
 but in general, we need to give each other a chance.
 Yeah, but I'm still,
 I walk with a heavy heart knowing
 that I'll probably make a mistake,
 especially one that I didn't mean to.
 That's the one that worries me most.
 Well, this is human nature.
 Like, hamarthia, to miss the mark,
 that's the root word of sin.
 We are sinful by nature.
 We can't help it.
 There's no way, again, pain is information, right?
 There's no way to learn other than trying, failing, learning.
 And then you put yourself in better formation, right?
 In formation to better deal with it next time.
 So I hope, I don't get the sense
 that you're actually afraid of making a misstep.
 Like, I think you just maybe disappointed's a better word.
 Like, you know you're gonna make the mistakes.
 Yeah, that's exactly it.
 That's a much, much better word.
 But we have to embrace that.
 That's the only way anything,
 it's the only way we can advance
 is that we're dealing with an incomprehensible reality.
 All we can do is throw spaghetti at the wall
 and see what sticks.
 And in that process, we're all inherently gonna hurt ourselves
 and hurt others, and that's where love
 and forgiveness come into play, right?
 And yeah, I think the other thing is that this culture
 of reducing people down to a label, right?
 Whether it's racism or whether you're calling them a scammer
 or any number of terms,
 you're discounting their sovereignty to zero, right?
 You're taking a super complex human that is vast,
 contains multitudes, is changing over time,
 and you're trying to put them in a bucket of a word.
 And that is just, I think, a cognitive fallacy.
 Like, it's not only gonna hurt the person
 that you're winnowing down to a word,
 it's also gonna hurt you.
 And it's gonna, in your attempt to de-complexify reality
 by assigning this person to a term,
 you're actually gonna create bad outcomes for yourself
 because you're not gonna understand that person.
 I do also think there's a failure
 of our social media technology that incentivizes
 that kind of reduction to a label.
 It's just the viral nature of that reduction.
 So it's not, not only do we humans naturally do that,
 our social media platforms make that easier,
 more fun, more effective to do that at scale,
 the mass hysteria.
 So I think there's actually technological ways
 of adding friction to that.
 Yeah, I wonder, I mean, I agree with you
 that it's social media is an amplifier
 to our natural, this natural way of dealing
 with one another.
 But I wonder, and my thinking has evolved a lot on this,
 that there's something below the way
 we're treating each other too, right?
 We could say civilization sort of advances
 in the tools we make and the way we treat each other.
 We tend to have better tools, better quality of life,
 and better morality, better quality of living
 and ways of dealing with one another.
 And I think that when you corrupt the money,
 that it really does push us the negative direction,
 pushes us away from, again, encouraging
 or magnifying scarcity artificially
 causes us to be more divisive.
 When things are more divisive,
 we tend to be less civilized, less nuanced,
 more black or white, this or that,
 or you're this, label A or label B.
 So I really think, and this is a harder one to unravel,
 but I think if we can fix the money, right,
 which again is the base layer operating system
 for human moral action in the world,
 that it has downstream effects.
 So we'd actually maybe start to treat each other
 a little better on social media,
 despite the fact that it enables this faster communication.
 That's interesting.
 So perhaps fixing social media,
 as I've been thinking about,
 is treating the symptom, not the cause.
 Yeah, that is the Bitcoin rabbit hole in a nutshell.
 As they say, fix the money, fix the world.
 You keep tracing these different social malaises
 or technological difficulties, lack of innovation.
 Weinstein's entire portal podcast,
 something went wrong in the early 70s.
 We went off the gold standard in 1971.
 And there's a great website, wtfhappin1971.com,
 goes through this whole gamut of socioeconomic data
 that's completely gone askew since the early 70s.
 Yeah, you had this whole video.
 What do you think about Eric Weinstein and Bitcoin
 and the gold standard?
 Does he, I actually haven't heard him talk about his thesis
 about the 70s in connection to the,
 going off of the gold standard.
 Yeah, what are your thoughts there?
 What are your thoughts about his general relationship
 with the Bitcoin idea and the community?
 Yeah, the first exposure I had to Eric was his,
 I think it was his first episode with Peter Thiel.
 And they're going through that thesis
 that there's been this general institutional rot
 and suppression of innovation since the early 70s.
 And he's trying to identify what it is.
 I don't think they ever pinned it on the money
 on going off the gold standard.
 But in recent interactions with Eric,
 I've interacted with him on Clubhouse.
 We recently released an episode of the show
 I did with Chris Espley and it was titled,
 Dear Eric Weinstein.
 So we're going through his worldview
 that he's expressed in the portal
 and tying it back to the money in different ways.
 And he's been, he's engaged.
 Eric retweeted the show.
 We had exchanged some messages.
 He's been very open-minded.
 He's asked some really good questions.
 So I get the sense that he's approaching this
 very wholeheartedly.
 He does bring with him his existing worldview
 and his existing theory.
 The one that really blew up was gauge theory.
 They got really popular.
 I don't know a lot about gauge theory.
 I actually messaged Eric and said,
 I wanna learn more genuinely because,
 he seems to be serious that that needs to be considered
 in the sphere of money.
 And so I wanna learn more about it.
 But I think overall it's great.
 It's great to see an intellectual heavyweight
 of his caliber gravitating towards Bitcoin.
 Yeah, he has some gauge theoretic conceptions
 about the world broadly, but also about economics,
 which ultimately boils down to just a set of mathematics,
 which allows you to more effectively reason
 about the world.
 And he has a certain set of views there.
 So it's fascinating to see him grapple with it.
 I think he's also kind of, actually kind of like all of us,
 grappling with the idea of what is Bitcoin in this world.
 It's a very young technology and it's unclear exactly
 how the ideas of the past fit with it.
 Yeah.
 And integrate how the two integrate together.
 And so it's interesting to explore,
 not just Bitcoin in the particular.
 So for me, like what I've always saw Bitcoin as
 from the beginning, from a narrow worldview
 is computer science, which is where I come from.
 And so I wasn't almost aware in the social, political,
 financial aspects of Bitcoin.
 But now I see that there's not just power,
 but there's fascinating ideas to explore
 on that side of things.
 Not just the computer science,
 not just the technical details,
 but the political, the socioeconomic, the philosophical.
 Yeah, that's where I find all the fascination
 in the world, frankly.
 I would, one other thing about Weinstein
 and intellectuals more generally
 that are skeptical of Bitcoin,
 I would challenge them to read the book,
 Human Action, written by Mises.
 I think in 1949, he published the English version.
 It's essentially the Bible of Austrian economics.
 And I think Austrian economics is a noticeable gap
 in most modern intellectuals worldviews
 that is not taught in school.
 I mean, I have a master's degree in accounting and finance,
 studied a lot of economics in school.
 There's not one peep of Austrian econ.
 The least, we love talking about all the degrees he has.
 I was a CPA, all that.
 But that curriculum that we get in college
 is noticeably deficient in Austrian economics.
 And I think there's a reason why.
 It's heavily government influenced.
 Again, master's degree in accounting,
 they never taught me about what money is
 or where money comes from.
 All you learn is that the central bank issues money
 and the central bank takes money away.
 So it's conceived of in the textbooks
 quite literally as God, right?
 An entity that suffers no opportunity cost
 that basically is the foundation
 of the entire Keynesian worldview
 that you're taught in economics.
 And Austrian economics is the opposite
 end of the spectrum of that, right?
 It's actually the culmination,
 which economics is the youngest science in the world,
 by the way.
 So it's the frontiers of science in many ways.
 When I say praxeology,
 many people have never even heard of that.
 But it's something, it's an a priori study
 equivalent to something like mathematics,
 that you're building things from first principles
 to reason about economic reality.
 And I think that book, it's a very difficult book
 written by Mises, 1,200 pages, translated from German.
 The way he wields English is fascinating
 and terrifying all at the same time.
 It'd probably take you six months to read it
 if you read it daily, seriously.
 Like it's a beast of a book.
 But that will plug the gap, I think in most,
 any intellectual that's skeptical about Bitcoin,
 I think that will plug the gap
 that's necessary for you to see it in a new light.
 Well, I'll take that as a challenge.
 Now that we took a little bit of a break,
 hey, some good Texas brisket.
 Thank you for that, by the way.
 Oh yeah, quite welcome.
 Let me ask the ridiculous question.
 At the core of the idea of Bitcoin,
 is this guy or this entity named Satoshi Nakamoto?
 So the ridiculous question is who is Satoshi Nakamoto?
 And first of all, is it you?
 It's not me.
 I wish.
 And is this an interesting question?
 Or is it just something about our human nature
 that wants to, that always tends towards mystery?
 Well, as we've touched on a bit today,
 mythology, in my opinion, is something that is intrinsic
 to how we see the world in a lot of ways.
 Like it's how, it's kind of the structure
 by which we build these useful fictions.
 And so in that way, you could just say that Satoshi
 is the godhead of Bitcoin, effectively.
 And I think a compelling argument could be made
 that his disappearance is what really solidifies
 Bitcoin's decentralization.
 Because if there were one individual to personally vilify
 or denigrate or attack,
 to disparage or question the motives of,
 if he's out on the Hollywood Hills partying,
 everyone knows he's got a million Bitcoin,
 it would just kind of tarnish the entire project
 in a lot of way.
 The fact that on that theme, something for nothing,
 this guy actually gave humanity something for nothing.
 And it appears that he didn't profit in any way,
 he, she, or they.
 Actually heard recently that he identified as a he
 in some of his communication.
 So it sounds like it is a he.
 Like his communication is being studied almost exactly
 as if he is a religious, like a prophet.
 It's fascinating to imagine that he's still alive
 and living in this world.
 And it's even more fascinating to imagine
 that he's perhaps participating in the Bitcoin community.
 Because that takes a special human being
 to, out of principle do that, to remain anonymous.
 That's very much the George Washington.
 I always wonder like how many people are like that?
 There's a cliche that like absolute power corrupts,
 absolutely like power corrupts.
 But it seems like the progress of humanity depends
 on the people whom power doesn't corrupt.
 And it's enough to have just a small selection of those.
 And even if most of us are too weak,
 we give into power if given the chance,
 all it takes is a few.
 That's, I've never thought of it like that,
 but Marcus Aurelius immediately came to mind.
 Yeah.
 You know, the guy that he had the keys to the kingdom
 and he apparently adhered to the stoic virtues
 until the end.
 But yeah, I agree with Satoshi.
 The other thing that's interesting is he would be by far
 the most wealthy person in the world
 on a liquid asset basis,
 as he has a million Bitcoin,
 which is 60 billion liquid net worth at current prices.
 So if he is still alive and just operating in the world,
 he is daily and moment to moment resisting massive incentives
 to go and just be the richest guy in the world.
 He's the ultimate hodler.
 Yeah.
 Yeah.
 I mean, so it's, I mean, it's turning down
 not just financial success, but also fame.
 I mean, fame is another drug.
 It's kind of power, but it's in itself is also a drug,
 especially in this modern society, in this attention.
 And he would have both.
 He would have both.
 It's fun to imagine who it could be.
 It's fascinating if it's somebody like you
 or somebody like Elon or somebody like that.
 That's fascinating to think about.
 I think Elon would be hilarious.
 He came out and he was Satoshi.
 He'd be like, hey guys,
 I know I'm already the richest guy in the world,
 but I gotta go ahead and double my lead here.
 What do you make of Elon Musk investing,
 with Tesla investing in Bitcoin
 and maybe broaden it out in some of these other,
 big billionaires, but also people tied to major companies
 investing in Bitcoin?
 Yeah.
 I think Michael Saylor really led the charge on that.
 He's the CEO of MicroStrategy that I think they've acquired
 upwards of $2 billion in Bitcoin now,
 started acquiring August, maybe of 2020.
 And he's personally bought a lot of it.
 He bought a lot as a treasury reserve asset
 for his company, MicroStrategy.
 Then they leveraged up on a convertible note and bought more.
 So he's really gone, really leading the charge
 in this Bitcoin institutional adoption.
 Your conversation with him is a really interesting one.
 Your series of, I mean, series of episodes I suppose,
 but it's only a couple of conversations, I guess.
 Yeah, we recorded twice, five and a half hours each.
 So it's about 11 hours of content.
 Yeah, thank you.
 It's a lot of people have said that
 it's the best first principle thing
 they've ever seen on Bitcoin,
 which I take no credit for that at all.
 I mean, I just sat down with a guy and unleashed him.
 He's just a beast.
 Yeah, but it's fascinating that
 his long-term vision with it.
 I mean, I'm not sure I'm all philosophically bought in,
 but if he's right, if this set of ideas are as powerful
 as he describes, as you described,
 that this would change the world,
 which as you say, it's funny that a company
 like MicroStrategy might be the company
 that has the biggest macro effect
 on our economy and our world.
 Yeah, the conversation reshaped my worldview a lot too,
 because he framed money as energy,
 which I had often thought of money as time.
 And it explored those connections a lot in my writing,
 but looking at it as energy,
 and then his supposition that the purpose of life
 is to basically channel energy across space and time.
 So we're just trying to figure out how to channel
 more energy across space and time
 toward the satisfaction of aims.
 And his definition, his answer to that question,
 what is money, is that money is the highest form of energy
 a human being can channel.
 So it's a claim to all other forms of energy
 we can manifest in the world.
 And that just completely reshaped how I see it,
 brought in this whole other side
 to my intellectual explorations of money.
 Can you elaborate on that a little bit?
 So I understand money is time,
 which in itself is a really powerful idea.
 But money is energy, channeling energy.
 Can you break that apart?
 Yeah, so I guess,
 definitely have to check out the whole series
 to really get his perspective,
 but I'll do my best to condense it.
 Life itself, all forms of life,
 they're dependent on energy.
 Energy fuels everything, fuels life in action and motion
 and all of that.
 And we could say that maybe like a plant
 is harnessing solar energy
 and then reallocating that into growth.
 So its aim is to grow towards the sun.
 So it's allocating energy towards its goal
 of harnessing more solar energy kind of thing.
 So, and humans too have evolved
 to figure out how to harness energy in different ways
 to satisfy higher and more complicated aims.
 So the original energy network
 that he referenced was fire, right?
 We actually learned to wield fire
 as a tool in and of itself.
 So not only are we learning to channel energy,
 but we actually learned how to isolate energy
 as a tool in and of itself.
 So we went into that,
 how harnessing fire had changed human beings.
 And actually, this is one of the earliest examples too
 of a co-evolution between tool and our biology,
 because when we developed fire, we developed cooking.
 And cooking is, you can kind of think of it
 as pre-digestion in a way.
 We're liberating these macronutrients
 or making things that otherwise would not be digestible,
 edible, and it increases the efficiency
 by which we extract nutrients from food.
 That's what cooking does.
 So when we figured out cooking,
 we liberated all these digestive resources
 that were reallocated towards higher cognitive development.
 So there's this evolutionary path
 between figuring out fire and us becoming smarter,
 which was interesting.
 Some other early examples he gave,
 he went into were missiles and hydraulics.
 So missiles being, we learned to hunt at a distance.
 We can't bring down a wooly mammoth,
 maybe with spears and up close and personal force,
 but we could with spears and javelins
 and slings and whatnot.
 And then he went into how we've used water
 to channel hydraulic energy.
 So we can basically overcome gravity.
 We can move, you know,
 there's theories that the pyramids were constructed using,
 the blocks were moved using hydraulic energy
 or using water.
 Clearly we use like cargo ships and whatnot
 to move things much more efficiently across water
 than we could the land.
 So his whole view is how we keep figuring out better ways
 and more efficient ways to harness energy and channel it.
 And in that perspective,
 money has always represented a claim
 on all other forms of energy.
 So whatever energy couldn't be channeled
 towards something useful in the economy,
 historically would go into gold mining.
 So gold became this residual, this economic,
 this token of the excess energy created
 by the market economy.
 And then you could take that token of energy
 and use it to redeem for any other form of energy
 or any other products of energy itself.
 So it's, I guess it's my best approximation of it.
 And it just really shattered my worldview again,
 because I'd always thought about it as time.
 Like we spend time sacrificing to obtain money
 that we then redeem for commencement sacrifices
 from others, but I'd never considered it purely as energy.
 And then it also ties back into gold
 where there was an energy expenditure
 necessary to obtain gold.
 So there's a proof of work associated with obtaining gold
 that protected its market value.
 All right, so you had to expend, again,
 if market value of gold is 2000 an ounce,
 you had to expend 1900 an ounce mining.
 So it kept producers honest in a way.
 So do you think something like proof of stake
 that's more about reputation than,
 than actual exertion, like energy can work?
 No, I think proof of stake is inherently centralizing.
 It's like the old Matthew principle,
 from those who have to those who have more will be given
 from those who have not, everything will be taken.
 That's what proof of stake is.
 You need proof of work to embody skin in the game
 in the marketplace, such that contributions are commensurate
 with consideration received.
 That's how systems work.
 What's the idea why proof of work
 might incentivize decentralization?
 Do you worry that as Bitcoin becomes more powerful,
 it may become again more centralized?
 Well, the decentralization of Bitcoin
 is largely driven by the nodes actually,
 which aren't actually mining.
 They're just choosing which rule set to implement.
 And then the mining network
 is actually enforcing that rule set.
 So I think the mining network is inherently decentralized
 in that really anyone with access to cheap energy
 can become a miner.
 You can freely enter or exit the market
 or the network at any time.
 But maintaining the block size at a manageable level
 is what's key to maintaining node decentralization.
 This is an interesting question.
 Who do you think has more power, the miners or the nodes?
 Because the nodes carry the idea of the protocol,
 like the specifics.
 So in some sense, they have more power.
 If Bitcoin is an idea.
 But then-
 They're kind of mutually indispensable though,
 because you can't have,
 there's no security without the miners.
 So without the miners, Bitcoin is just an idea.
 And the idea of Bitcoin is maybe existed
 even before Bitcoin, right?
 Just sound money.
 We just say sound money is an idea.
 But there was no way to root that
 into thermodynamic reality without Satoshi figuring out,
 not just proof of work,
 it's the entire composite of the difficulty adjustment,
 proof of work, one-way hashing, et cetera.
 So I don't know, that's hard to say,
 hard to disentangle the two.
 You've talked about money as morality too.
 How do you think about moral and immoral action
 in the context of money?
 And there's this great quote by Rothbard,
 who's a famous Austrian economist.
 And he says, quote, to be moral, an act must be free.
 Unquote.
 And I think morality, it changes over time
 and it has its roots in biology.
 Jordan Peterson makes the point that even animals
 have their own sort of pseudo morality.
 With wolf packs, for instance,
 if there's a dispute between the alpha males,
 or I guess between an alpha male and an incumbent,
 the two males will have a fight basically.
 And then when one is decided that one has won,
 the loser will basically roll over and give up his neck
 to the alpha male.
 And they do this instead of fighting to the death
 because in a wolf pack, they need every wolf
 so they can go out and bring down,
 you never know when you're gonna need the 20th wolf
 to bring down the big buffalo the next day or whatever.
 So they've developed this less than fight to the death
 social morality to optimize their effectiveness
 as a wolf pack.
 And similarly for humans,
 our morality sort of emerges through competition
 and play even.
 There are these implicit rules that come into place
 based on how we're organizing ourselves over time.
 With money, it's interesting because most tools
 we would consider to be amoral,
 as in a hammer can be used to build a house,
 which could be seen to be good, like a good
 constructive purpose or could be used to bash someone's skull,
 which could be something evil.
 And that the tool itself is amoral,
 doesn't have any independent morality of its own.
 All of the morality is associated with the wielder
 of the tool.
 So what's the quote?
 Like any tool can be a weapon if you hold it right
 sort of thing.
 But money's maybe a little bit different in that
 when you monopolize money,
 it's only useful as a tool for one thing.
 And that's for allocating wealth away from some
 and to others.
 So it is the only utility of monopolize money is theft.
 There's no other, you know,
 there's a lot of propaganda out there that will say,
 oh, we need to print money to get out of this disaster
 or to give to the poor,
 whatever moralistically camouflaged political aim
 is being discussed at the base layer of monopolize money
 is that it's only useful for taking from some
 and giving to others.
 So another way to think about this is that
 money is a paper claim on the savings of society.
 So it is just a ticket for redeeming savings,
 which could be time, could be capital,
 could be knowledge from any market actor in the world.
 So it's kind of a list of who owns what,
 if you will, it's a proxy list.
 If there's one group that can amend that list
 and others cannot, then they're basically able
 and incented to modify that list to their own benefit.
 And that's effectively what a central bank is doing.
 So a central bank is determining how much money to create.
 They're also determining who gets to receive
 that money first.
 And the first recipients of that money
 are gonna be the beneficiaries in an inflationary regime.
 So those that receive the money last
 are the ones being robbed.
 Those that receive the money first
 are the ones that are receiving the stolen proceeds,
 let's say.
 And this has a really corrosive effect on social morality
 because if we consider that people's time horizon,
 which the Austrians call the time preference,
 the more short-term thinking you are,
 the more likely you are to engage in selfish behavior.
 If you know that it's all over tomorrow,
 you've been working your whole life to develop this business
 or create this reputation or whatever your thing is,
 but you just are given the foreknowledge that tomorrow,
 it's all gonna end.
 You're much more likely to go out
 and just maybe get drunk and party that night
 because there's no more repercussions, right?
 Whereas if you know that you're gonna live
 for a very long time,
 you're much more likely to plan for the future.
 And money's very,
 so we just say that your time horizon's
 closely related to your morality, right?
 The longer term thinking you are,
 the more moral you would tend to behave,
 the more you would care about long-term relationship building
 versus going out and getting wasted.
 And money too impinges very closely on our time preference.
 And again, time preference is the Austrian term.
 So low time preference means you're long-term oriented.
 High time preference means you're short-term oriented,
 which can be a little trippy for some people
 because it sounds backwards.
 But,
 if your money constantly loses value,
 you are incentivized to become more short-term oriented.
 You are handicapped in your ability to plan for the future
 because your money, which is intended to be,
 here's another definition of money,
 as an insurance policy against uncertainty.
 So no matter what problems you encounter in the world,
 this money will best help you deal with those problems.
 When that insurance policy against uncertainty is injected
 with uncertainty, it's polluted with the uncertainty
 of inflation, your time horizon shrinks,
 your ability to plan long-term shrinks.
 And this impinges on social morality.
 So there's a great book on this called
 Honest Money by Gary North.
 And in that book, he gives the parable of the winemaker.
 And the winemaker,
 it's a very important part of the story.
 And the winemaker, if you just imagine
 the hypothetical winemaker operating a business
 in a centrally banked economy,
 and let's say his central bank just doubled the money supply
 to quote unquote save the economy,
 say an increase in money supply from one to $2 trillion.
 This winemaker that's accustomed to selling wine
 at $20 a bottle is now faced with basically three choices.
 And an important point here too,
 before we get into his three choices
 are what prices are themselves.
 Prices are the most visible aspect of any service.
 So when you increase prices,
 you're incentivizing your customers to look elsewhere.
 They're gonna look at your competition.
 When you decrease prices,
 you're incentivizing market actors
 to look closer at your product.
 You're delivering a solution at a lower price.
 So this winemaker that's accustomed to selling his wine
 at a $20 price point,
 all of a sudden because of his central bank
 has tripled the money supply.
 He has three choices.
 He can either keep selling his bottle at $20
 and all of his inputs will increase due to inflation by 50%.
 So he will lose 50% of his profit margin as a result.
 So he can choose to eat that loss.
 He can choose to double the selling price
 of his bottle of wine from $20 to $40
 because all of the price of his inputs doubled.
 So then he would maintain his profit margin.
 Or the third one is that he could choose
 to water down his wine or use inferior ingredients.
 So he could use cheaper inputs
 and maintain the output at the same price.
 So he could basically start selling his customers
 an inferior product for the same price
 to preserve his profit margin.
 Now, again, case number one, it's not very palatable.
 He doesn't wanna eat the economic loss.
 Case number two, it's not very good either
 because he's then incentivizing all of his customers
 to go shop other winemakers if he doubles his price.
 So human nature being what it is,
 trying to get something for nothing,
 inflation actually seeps into other industries
 by encouraging producers into option three,
 which is to deceive your customer in the short run.
 And again, this would be done initially at the margins.
 Maybe it's just a few drops of water.
 Maybe it's just some cheaper grapes.
 But over time, this inflation is actually inducing producers
 to weigh their financial wellbeing
 against their moral integrity.
 So it's forcing them into this dilemma
 that would not exist in a free market economy.
 And as they charge more money for wine that is inferior,
 the buyers of that wine,
 also living in a central banked economy,
 are also getting scammed by not only the inflation,
 but also the wine.
 So it becomes this kind of corrosive,
 contagious moral effect
 that propagates throughout an economy.
 And that's why I've argued in a lot of my writing
 that inflation is this infectious moral cancer on the world.
 I think it is tied back to a lot of the social strangeness
 we've seen in modern times,
 where there seems to be a lot of fake people
 and a lot of fake businesses and a lot of scams,
 all of these things.
 I think it really is rooted in the money.
 And Bitcoin, as the first money in history
 that has a 0% terminal inflation rate,
 or said differently, zero unexpected inflation.
 There's no theft integrated into Bitcoin.
 You can only earn it through work
 or sacrificing resources to obtain it.
 It is the antidote to this moral cancer
 that inflation riddles our society with.
 Again, you're blowing my mind a little bit
 to think about the ripple effects of inflation,
 the way it seeps through our interactions.
 So at the very, the early ripples is the effect
 that has on the products, on the dilution of the wine.
 But also it might have ripple effects on the care
 or the ripple effects on the character,
 on the behavior of people.
 That's interesting, artificial creation of scarcity,
 creating,
 having effects on society at the social,
 like the social fabric.
 Yeah.
 And I guess you're arguing the morality.
 It's perverting free market dynamics,
 which again, we said free markets generate pragmatic truth.
 So inflation distorts price signals,
 which means it confuses capital allocation.
 Yeah.
 So we're trying to solve problems,
 but all of a sudden we can't tell if this price increase
 is a matter of true supply and demand change
 or a matter of policy change.
 So it clouds our economic perceptions.
 It suppresses innovation
 because now you've exacerbated the boom
 and bust business cycle.
 People are gonna overborrow and go into projects
 that they can't profitably sustain.
 So then there'll be a huge collapse.
 So that actually breaks the market's function
 of generating innovation.
 And then, yeah, I would argue too
 that it pollutes our pursuit of virtue, let's say.
 Maybe it's pushing back, but I don't think so.
 It's not as clear to me,
 perhaps because I haven't thought about it deeply,
 that money is core to life and human interaction
 because there might be other forces,
 other fraudulent forces,
 other things in human nature
 that are creating these effects as well.
 So it's clear, I think you're articulating really well
 that there's these negative effects from inflation.
 I wonder if there's other undiscovered,
 not undiscovered, but ones we're not making explicit now,
 forces that are creating all the things we're seeing now,
 with, like you said, cancel culture and all those things,
 but also the negative effects on the quality of products,
 on the excellence of the creativity and the innovation,
 all those kinds of things.
 I wonder if there's other factors.
 It's kind of, listen,
 it's compelling to think money's at the core of it all.
 Like if you fix, I forgot what the phrase was.
 Fix the money, fix the world.
 Yeah, fix the money, fix the world.
 That, again, things that sound good, I'm skeptical of,
 by nature, so I wonder if there's other things
 that are beyond money that are somehow deeply integrated
 into our human nature.
 Another one related to money is social cohesion itself.
 So very simple anecdote for this was,
 the more you increase the inflation rate,
 social cohesion is inversely proportionate to that.
 So the extreme example would be hyperinflation, right?
 Where the money is produced in such excess
 that it loses all meaning and relevance.
 So today in Venezuela, there is cash clogging the gutters,
 clogging the streets, clogging the sewer system,
 because the cash has lost all relevance.
 And so anecdotally, we would suspect that, okay,
 if there's a inverse relationship
 between inflation and social cohesion,
 if we could then take inflation to zero,
 couldn't we theoretically increase social cohesion
 to its maximum?
 So another way to say that is,
 inflation is a de-civilizing force,
 whereas natural price deflation,
 which would occur in a hard money economy,
 where there's either a fixed supply of Bitcoin
 or relatively scarce supply of gold, for instance,
 that lays claim to an increasing capital stock
 of goods and services,
 prices would naturally decline every year
 as we became smarter.
 So the market price becomes a reflection
 of our collective knowledge.
 So by letting prices decline naturally over time,
 we can actually induce civilization.
 But by trying to force prices higher all the time,
 via the central bank, we're creating the opposite effect.
 So we talked a little bit about the Soviet Union
 and I happened to have lived through the collapse
 of the Soviet Union.
 And so what are the factors, the causes in your mind
 to why the Soviet Union collapsed?
 So, definitely a multivariate situation.
 I think there's a lot of factors.
 One that jumped out to me recently,
 again from that documentary that I didn't note before,
 was that at one point Stalin eliminated,
 I think 75% of his intelligence force,
 which I think when you're competing
 with another nation state,
 and intelligence and covert operations
 are very integral to your survival,
 I think that was definitely a shot in the foot.
 But at a higher level, I would say that capitalism
 and communism were each resource strategies
 of the 20th century nation state.
 And they seem, we commonly consider them
 to be diametrically opposed,
 but there's actually a lot of commonality between the two.
 The difference would be that in Soviet Russia,
 as we alluded to earlier,
 they tried to completely replace price signals
 with this nationalistic faith and devotion.
 So they removed the economic nerve signal,
 which coordinated the allocation of capital over time.
 So this inhibited their ability to generate wealth.
 Whereas in the United States,
 we left most markets open to free enterprise.
 So we honored the integrity of price signals
 and we allowed people to trade and accumulate wealth.
 And every market except the market for money,
 both markets maintained a central bank as we've gotten to.
 So I think in a really big picture standpoint,
 that's why capitalism outcompetes communism
 is because it is able to generate more wealth
 than communism was,
 and therefore was able to put financial pressure
 on the USSR until it reached the point of bankruptcy,
 essentially.
 This a similar model, I would argue,
 is that for the same reasons we saw
 capitalism outcompete communism,
 which I think the data that I recall
 was that the USSR's economy was valued
 at close to one third of its inputs.
 So if you just didn't do anything inside the USSR
 and just sold all the raw materials that were going into it,
 it would have been worth three times as much
 as sending the materials in,
 running it through the efforts
 and then shipping things back out.
 It was value destructive versus value creative.
 And I would argue this is because,
 again, the centralized computing model
 versus decentralized computing model,
 it just became more and more corrupt over time.
 It got to the point where I think most of the occupations
 in USSR towards the end were as informants.
 They were working for the state.
 Jordan Peterson makes this point too,
 that at some point it was actually illegal
 to be sad in Soviet Russia.
 Because if you were sad,
 you were contradicting the utopian view of the state.
 So if you were sad,
 you're implying the state's not doing something wrong.
 But by the way, this does remind me,
 what, do you know what Jordan Peterson thinks about Bitcoin
 and about the future impact of Bitcoin on the society?
 Are you excited about this meeting?
 No, I don't actually.
 We're hopefully gonna be talking to him soon about that.
 We did a book club on his book, Maps of Meaning,
 and he engaged with us about it.
 So we're hoping to deliver the orange pill to Mr. Peterson.
 The orange pill.
 I think his audience is one of the most important audiences
 in the world to understand Bitcoin.
 These people that are conscientious and responsible.
 I think they'll quickly understand Bitcoin's value proposition
 and help elucidate it to the world.
 I'm trying to remember what he said about it.
 Basically, I think his support of Bitcoin is grounded
 in the kind of people who are opposing Bitcoin.
 So without understanding Bitcoin,
 he starts to like Bitcoin
 because of the people who are opposing it.
 You start to, I mean, that's partially why
 I am interested in Bitcoin.
 It's like all the people in power
 and all the kind of shady, fraudulent,
 and non-genuine people who are dismissing Bitcoin
 are making me think, hmm.
 One of Jordan's definitions of God is,
 he says God is found in the truthful speech
 that rectifies pathological hierarchies.
 And I think that is a beautiful definition
 of what Bitcoin is doing in the world
 and that we have this pathological hierarchy
 called central banking by which the rich get richer
 and the poor get poorer.
 That is used as a mechanism for perpetual theft
 and funding warfare at a global scale.
 Like Ron Paul said, it's no coincidence
 that the 20th century of total war
 was also the century of central banking.
 When you have an institution of currency counterfeiting,
 which the central bank is,
 you are no longer bounded by your own balance sheet
 when you go to war.
 You don't have to just go to war on your own resources.
 You can now pillage the Commonwealth
 and pull for the savings of society as a whole
 before you go bankrupt.
 And indeed, this is what Hitler did, right?
 Hitler hyperinflated in the Weimar Republic
 to fund his war efforts.
 And frankly, every dictator, every world war,
 every internment camp in history was made possible
 by the weaponization of money in fiat currency.
 So I hope, I know Jordan Peterson
 is a huge proponent of free speech.
 And I think that's ultimately at its deepest essence,
 that's what Bitcoin really is, right?
 It is just the purest form of monetary speech
 we've ever had.
 And by purifying that primary operating system
 of human action, I think we can eliminate
 this pathological hierarchy that is unfortunately
 the dominant institution in the world today.
 Yeah, I'm definitely, especially with these explorations
 of Bitcoin, this journey I've been on,
 I'll revisit some of the aspects of human history
 that I've been looking at, like Stalin and Hitler,
 with a, from a perspective of, a monetary perspective.
 Like, what are the effects of inflation?
 How was it used as a tool in gaining power
 and maintaining power and manipulating the populace
 in doing, in inflicting suffering
 and I would say evil onto the world.
 It's interesting.
 It's interesting.
 I'm gonna have to sort of go back into the whole.
 So I tend to focus more on the human nature
 and less about the tools that human nature leverages
 to effect change.
 But you're right that in some sense, money is a tool
 which can be effectively used to perform moral
 and immoral actions depending on how it's used.
 And there's a feedback between the two, right?
 There's, specifically with money itself,
 it's the, here's the way I've been posing it lately,
 is that I actually think, we typically think of people
 as good or bad, or again, trying to label people
 all the time, but I think people and their characters
 are emergent properties of the incentive structures
 they inhabit.
 So, what does Charlie Munger say?
 Don't show me the incentives,
 I'll show you the outcome kind of thing.
 This is a flawed incentive structure
 we've been operating within.
 Now I'm not speaking to the intention.
 People wanna argue with me all the time,
 like Jerome Powell's not a bad guy.
 He's doing his best at the central bank.
 He's doing what he thinks is right, that's fine.
 Well, that's true or not, it actually doesn't matter.
 The intention is divergent from the outcome.
 The institution that they are running
 is premised on deception and theft,
 and it is handicapping the productive economy.
 So when we're, even the terms we use, printing money,
 you're not creating any new value.
 You're not infusing the economy with anything,
 any new productive factors whatsoever.
 You're just harvesting the economic surplus
 created by entrepreneurs in the marketplace.
 It's impossible to add any value to an economy
 by increasing the paper claims on its savings.
 So there's a feedback loop between man and tool,
 between creator and created.
 And I think we have to honor the relationship
 above either one, right?
 Trying to put the right people in the system
 or just build the right system, we need both.
 Do you think the interesting question
 or whether the people that are in control of central banks
 or in positions of power there,
 if they themselves are malevolent,
 if they themselves are bad actors,
 or they're simply like leaves floating along the river,
 sort of just the cog in the machine, an ant,
 and an ant colony that operates in a certain kind of way.
 Like where do you put the blame?
 Do you put the blame on the way things are operating
 onto the individuals or onto the system itself,
 the idea behind the system?
 And is it useful to place the blame somewhere?
 Because for me, it might be useful to understand that
 in order to figure out what the solution is.
 I tend to not put the blame on the individual.
 Like I tend to believe most people are good
 and want to see themselves as good.
 And so in that case, it's very difficult
 to be truly malevolent as you would need to be
 to control, to gain centralized power at the large scale.
 But I know a lot of conspiracy theorists
 and just a lot of people think that there is evil,
 humans in the world that seek power, maintain that power,
 and they use that power for bad purposes.
 I think they're just people,
 and they're just trying to get something for nothing
 like all of us do.
 I like this framework of thought that you have.
 Honestly, and that's what the central bank is,
 is the ultimate institution to get something for nothing.
 You get a perpetual income stream,
 the ability to acquire more and more territory in the world
 through monopolizing the supply of money,
 and you can literally print money.
 You can buy your way out of anything
 and buy your way into anything in the world.
 So it is, I think, the most,
 not say the most, but a group of very intelligent people
 put this thing together and figured out
 how to get something for nothing in perpetuity
 by clouding people's conception of money.
 And if we look at the central bank,
 it's been around for a while,
 but the latest implementation here in the US is the Fed.
 It's about 100 years old.
 It's an analog age institution that I think has lost
 a lot of its relevance in the modern age,
 and I don't think it will survive
 the ever-galvanizing gaze of the digital age
 is just too much sunlight, too much transparency today.
 Ideas move too quickly for something like this
 to remain relevant.
 But there are just people.
 There are just seeking something for nothing,
 but I think when you concentrate that much power
 and that much control, that much wealth
 into the hands of few, it does change.
 Hayek argued that the nature of power,
 again, it's something that we all sort of desire.
 To be completely powerless, you're really unhappy.
 If you're totally powerless, you're a slave.
 Someone else tells you what to do.
 You have no autonomy.
 It's miserable.
 So there's this, it makes the consolidation of power alluring
 and that we want to protect ourselves
 from that slave state, let's say,
 but like many things, it can be taken too far.
 And when you concentrate power into too few hands,
 Hayek argues that it actually transforms.
 It becomes something much more intoxicating
 than it would be if it was held in a more distributed way.
 And I think that gets into a lot of these,
 I don't know if they call themselves elites
 or people call them elites or what,
 like let's say shareholders of central banks,
 people participating in the World Economic Forum,
 things like this.
 They come, I guess the incentives, right?
 The incentive schema they're in is rewarding them constantly,
 telling them everything they're doing,
 seeing and thinking is correct
 because they just keep getting richer all the time.
 And it leads you closer to this definition of evil,
 which in the book Paradise Lost, Friedman said,
 evil is the force which believes its knowledge is complete.
 So these people become more and more convinced
 that they have the plan or they have the course of action
 that will save the world,
 that if everyone would just listen to them,
 that they would lead us to the promised land, right?
 Whether this is Bill Gates saving us from a climate crisis
 or any of these other economic policies
 that are targeted at a certain outcome,
 but almost always diverge almost perfectly from that outcome,
 creating its opposite effect.
 I think that's the problem,
 that we have this mechanism that can concentrate wealth
 and power into the hands of so few,
 that it leads to the proliferation of evil,
 meaning that it convinces people
 that their knowledge is complete.
 Whereas something like a Bitcoin
 almost forces the opposite outcome.
 In a Bitcoin denominated world, a pure free market,
 the consumer is sovereign.
 So you cannot earn value in the world
 unless you are serving your fellow man,
 unless they have expressed through their buy
 and sell decisions in the marketplace, right?
 You've created a satisfaction of a particular want
 that they value so much,
 they've acquired so much of your good or service
 that you've become rich.
 You can only maintain that position of wealth
 so long as you continue to serve your fellow man.
 So it changes the incentive such that dominance in the world
 is no longer, can no longer be paired with coercion.
 It has to be paired with competence.
 And that's how this, when we say Bitcoin fixes this,
 that's what we mean.
 Like it restores that skin in the game,
 that balance of incentives and disincentives
 that help us properly navigate reality.
 And it prevents the buildup of systemic rot
 like we see with the central bank.
 What books?
 People love this question.
 And you're exceptionally well-read.
 You've explored all kinds of ideas.
 Is there some books, technical fiction, philosophical,
 coloring books, children's books,
 had an impact on your life
 and you would maybe recommend to others
 that they should read?
 I think we mentioned a couple of them here today,
 but I think a really useful triplet of books
 that I've been recommending recently
 to help diffuse this materialist worldview of reality
 where we still think in kind of the Newtonian model
 that it's atoms and cause and effect.
 I'd first recommend Jordan Peterson's book,
 Maps of Meaning, it's a deep dive into mythology
 and how it's developed over the course of history
 and how it's reflected both in our social structures
 and our intra-psychic nature really,
 and how they come to reflect one another in a way.
 Like the way we think again, shapes the world
 and then the way the world is shaped
 shapes the way we think.
 That's an excellent book.
 It's very dense and difficult read.
 Actually, this trilogy is pretty brutal,
 probably take you a year to read, hours a day.
 The second one I mentioned earlier
 was Human Action by Mises.
 The ultimate tome on Austrian economics
 will help explicate this realm of relevance,
 I think that economics truly is,
 where again, there are things
 and then these things become means or ends
 once we channel our purpose through them.
 So this realm of non-materialist relevance
 that I think is really important to grasping economics
 at a first principles level,
 I think that book lays it out tremendously.
 And then the last one would be,
 I think I mentioned this at the beginning,
 was that book Lila by Robert Persig,
 where he's making the case that value is fundamental.
 And all of these books, they kind of all point to that,
 actually, they're pointing back to value
 being the fundamental thing.
 Values expressed through moral action
 as being the fundamental substrate of reality.
 So if you're like me, I grew up quite scientific minded,
 it'll help diffuse some of that
 and maybe retrain you to the other side of reality.
 So you said these books are difficult,
 maybe you can comment on which aspect is difficult.
 Is it just the technical nature?
 Is it the length?
 Is it the depth of the ideas
 or how long it takes to integrate them?
 And more sort of importantly,
 is there recommendation advice you can give
 on how to integrate these ideas, how to read,
 how to learn in this space?
 Is there from your own life,
 like how do you enjoy taking in ideas?
 And this could be for these books,
 but also in the Bitcoin world
 and reading a bunch of different ideas written by others,
 just integrating stuff,
 or even watching podcasts and all those kinds of things.
 Yeah, I'm a reader, I love to read.
 One of the most useful things I've ever done
 was take a speed reading course.
 I actually think there's a version of this
 available on Tim Ferriss' website,
 it's like a 30 minute speed reading course.
 It's all about eye movement.
 Instead of moving your eye continuously line over line,
 it's more about jumping in your brain.
 You can train your brain to just absorb words
 in their totality versus kind of reading word by word.
 And also not, I haven't fully taken that journey actually,
 but I remember taking a few steps on that journey,
 realizing that I'm speaking inside my head.
 I'm saying the words inside my head
 and that's actually getting in the way.
 That's right.
 So there's a lot of little hacks like that.
 I may be lazily, I'll have to,
 now that you mentioned, I'll have to revisit this.
 But I have convinced myself
 that I don't need to read faster
 because that's not ultimately the bottleneck.
 The bottleneck is in me thinking about stuff.
 In fact, I like reading really slowly
 or so I convinced myself.
 Because ultimately it's not about gaining more information,
 it's about time spent thinking deeply.
 But maybe that's just me being very lazy
 because yes, it's true, it's important to think deeply,
 but maybe I could speed up the consumption of information.
 It's fine, I like to be dynamic actually.
 So usually speed reading initially
 and that diffused that internal dialogue for me
 because when I was reading one word at a time,
 I was having that too.
 You almost get a feedback in your own head
 when you're reading the word out loud
 and it's out in your thoughts.
 If you're speed reading, you can't do that.
 You're taking in groups of words at a time
 so you can't internally verbalize it, I guess.
 And then I also am really big on annotating,
 underlining, writing in the margins.
 I prefer a physical book, but I also read the Kindle a lot
 because it's just so convenient.
 Anywhere you're waiting in line
 or every night before bed, I'm reading my Kindle.
 And I also advocate rereading a lot.
 So if you found something that struck you at a deep level
 you found particularly fascinating,
 you have to listen to that.
 That's your, I don't know, your mind or your spirit signal
 that that is something meaningful to you
 and you should, to your point, reread it,
 sit with it for a long time, write about it.
 And that becomes the ultimate triumvirate
 of synthesizing an idea, actually.
 If you can read about it and then write about it
 and then go and talk about it,
 you get this crystallization of understanding
 that's just not possible doing any one of the three
 or any two of the three.
 So I definitely highly recommend people to do that.
 And in terms of how are those books difficult?
 I mean, in every way, they're all long books.
 In terms of density, I would say Lila is the least dense,
 maybe Maps of Meaning.
 I don't know, but Maps of Meaning
 and Human Action are both extremely dense.
 But they're just, I had to read those books very slow.
 You just have to take your time with them.
 To give you an idea with Jordan Peterson,
 he's said this a lot with Maps of Meaning.
 He spent three hours a day writing for 15 years
 to write that book.
 It's probably, I think it's a 600 page book.
 He said he estimates he rewrote every sentence in the book
 50 times, five zero, to try and get it just perfected.
 And when you read these sentences,
 you can tell that he rewrote it 50 times.
 I've used actually Anki for space repetition.
 It's like a piece of, it's an app.
 I'm not sure if you're familiar with it,
 but it allows you to load in facts or terms
 or entire paragraphs.
 And then it brings them, you review them every day
 and then it brings them up less and less often over time
 as you show yourself being able to remember the thing
 that you wanted to memorize.
 And oftentimes when I'm reading,
 what I want to memorize is the key idea.
 But also like I use it for, I'm terrible with names.
 So I'm starting to use it for names too,
 names of people, names of like people
 that I wanna remember.
 And also throughout history and also my personal life,
 but also events.
 Dates to me are usually not important,
 but sometimes dates are really important.
 And so it's really useful.
 I recommend highly.
 Naval, I think mentioned a piece of software
 called a read wise or something like that,
 that I hope I'm saying that correctly.
 It's something like that.
 And what it does is it goes to your highlights
 from your Kindle or the various places
 where you highlight stuff that integrates with good reads.
 And it does the same kind of space repetition,
 but for things you've highlighted.
 So it sends an email every day.
 And it's been really, I recommend it highly
 because it sends like to me an email form,
 a selection of the things I've highlighted
 and previous things I've read.
 And it's like this weird like shock to your memory
 that sprinkles like I'll have a way,
 probably way too much Orwell in there.
 And it just kind of like, it brings you back.
 And these ideas are, because what you realize,
 depending on how you highlight, but at least for me,
 and I think it's probably true for a lot of people,
 the things you've highlighted had at that moment
 and like an emotional impact on you.
 And so like these things are just like hitting you hard
 again, it's like, whoa, it might not be meaningful
 to anyone else except you.
 And it's something I recommend.
 You never know with these like hacks or tools and so on,
 like what's actually BS and what is amazing.
 And that one is kind of amazing.
 So at least for me, it works for me and Naval.
 I think he's the one.
 Read wise, you said.
 Read wise or something close to that.
 It could be read something else,
 like read wealth or something.
 The one other thing I really like,
 and this is more of a new one is I used to always listen
 to music at the gym, but now I've just,
 cause I'm so backlogged on podcasts, right?
 There's just, there's so many.
 I exclusively listen to podcasts when I'm walking
 or when I'm at the gym, anytime I'm doing something
 that I can't read basically.
 And I think there's something really special
 about exercise and ideation.
 I mean, I don't know if this happens to everyone,
 but my creative juices just go ballistic.
 When I'm at the gym, like I hit a certain point
 of I guess heart rate and you're sweating enough
 that the ideas just start to flow.
 So I'm basically at the gym now listening to podcasts,
 exercises as fast as I can to try to get to that state of,
 you know, where you're just straining,
 you're strenuous exercise, I guess you would say.
 And then I'm end up typing notes into my phone
 as fast as I can with all these ideas that are flowing.
 So I've created a lot of good writing out of that.
 Yeah, it's kind of work.
 So I do running quite a bit.
 So running outside and I'll listen to,
 I've been, okay, I told myself this has been going on
 for about a year is I only listen like the stuff
 that's either World War II or World War I related.
 So Hitler, Stalin, like difficult historical stuff
 and also listen to brown noise.
 So those are the two modes.
 So brown noise helps me, this is like white noise,
 but like deeper, I guess, it helps me remove the world.
 At the gym, there's a lot of distractions.
 When you're running, there's a lot of distractions.
 It helps me remove the world.
 So one, I'll be listening to difficult historical ideas.
 And then when my mind is all of a sudden
 starting to generate ideas, I'll listen to brown noise
 and then force myself to think.
 It's kind of, it's meditative in a sense.
 And your mind wants to be lazy.
 You want to, it's hard, man, like running and thinking
 in the sense that some of the ideas
 that come into your head are pretty heavy.
 It's about your own life, your own demons come in there,
 but also just difficult ideas
 that require you thinking through
 and persevering through that,
 like not letting yourself get lazy
 and like thinking through it has been really, for me,
 rewarding in the same way that you're saying it is for you.
 It's true that like podcasts and music,
 like shallow, like funny podcasts or music
 have been a kind of filler distraction,
 but informational podcasts, like podcasts
 that have some depths of ideas or audio books
 have been truly rewarding.
 I try to listen now less and less to podcasts
 that are just fun,
 because I feel like I enjoy it too much
 and I don't allow my mind to get bored
 and to think through stuff, to explore ideas.
 It's so easy to fill the space
 that usually would be filled with thought
 and instead fill it with fun podcasts.
 There's a bunch of comedy podcasts I really enjoy.
 So there's value to that, of course,
 but you have to realize it's entertainment.
 You don't get much value except entertainment.
 And there's utility to the boredom too, I think,
 or to give your mind the space,
 I guess your subconscious maybe the space
 to chew on some of these problems,
 where you've imbibed so much knowledge,
 you've highlighted and thought about something,
 but then you need to stop thinking about it for a while
 and let it marinate in the subconscious.
 And then these flashes of insight
 that people have described,
 sometimes I get them in the middle of the night,
 like I just wake up from a dream and have them
 and I gotta write it down,
 or sometimes it's in nature taking a walk.
 But I think that's very important too.
 We can't just brute force our way into understanding.
 There's this interplay between
 kind of the brute force reading intake
 and then just relaxing, meditating, sleeping, being bored,
 letting your subconscious do the heavy lifting.
 And there's, you should be aware of the fact
 that there's a war for your attention going on.
 So there's a lot of, there's been better and better
 and better mechanisms that are designed
 to steal your attention.
 So I kind of see it as a war zone
 between my right for boredom
 and the internet wanting your attention.
 In fact, Clubhouse as an app has been,
 I'm probably not gonna use Clubhouse much anymore.
 There's some aspect of my own inner loneliness
 and whatever it is that pulled me into Clubhouse
 a little bit too much to where it robbed me
 from that lonely time alone where I sit
 and listen to Bruce Springsteen and think about life.
 So I wanna-
 That's way more important.
 It's way, well, yeah, at least it's all in balance
 because there is a Clubhouse like a lot of these
 social networks when you use right
 can be a way to discover new ideas, new people.
 But the boredom and just being alone with your thoughts
 is priceless.
 Absolutely.
 And you gotta know yourself, right?
 It took me a long time to realize I need solitude.
 Yeah.
 Like just how I'm wired, how I'm built.
 I need like an hour a day solitude.
 So you gotta listen to that part of yourself.
 You might be compromising something like that
 where you feel like you always need to be
 with your girlfriend or whatever it may be.
 But I would suggest listening to that voice.
 Yeah, I tried to remember things
 that made me feel good over time.
 Like long-term had positive impact
 and long-term had negative impact
 and do more of the former and less of the latter.
 We don't often think like that.
 You know, we talked offline about like carnivore diets,
 for example.
 I try to remember that carbs don't make me feel good.
 Yeah, that's what-
 In the moment it's hard to remember that.
 It's hard.
 But you have to remember that that's the case.
 And in the same way, exercise,
 it's hard to remember that exercise makes me feel good.
 Like- Especially when it's time to go to the gym.
 Especially when it's time to go to the gym.
 But you should remember that
 because the kind of person you are without exercise,
 for me, just like you beautifully said,
 that you have to know yourself.
 The kind of person I am without exercise
 is a less good person.
 A person I'm less proud of.
 The food thing is so hard, by the way.
 I still, you know,
 I can't tell you how many times I've learned the lesson,
 like don't eat that.
 But then, you know, you go a few weeks
 of not eating whatever that is and you're feeling good.
 And then you're, I don't know,
 something creeps up inside you like,
 ah, you could just have one or you just do this.
 But for me, it's sugar.
 Like sugar just makes me feel terrible.
 But always, not always, but if it's been a long time,
 I start to make that exception in my mind.
 Like, oh, you can have a little bit.
 And then I eat it and I feel terrible.
 So I don't know how many times I've done that dance,
 but it's not cool.
 Well, it depends on how painful it is
 and then you learn the lesson.
 I actually embraced the fact
 that I'll never learn the lesson with vodka.
 Every time I drink, especially with Russians,
 is like, I quit drinking every time.
 And then I forget, there's like a slow drop off.
 It'll be like two weeks and then.
 Nostrovia.
 Nostrovia.
 Very good.
 So it never makes me feel good.
 It never results in anything good.
 Except the beautiful social chaos,
 which is ultimately somehow,
 there's value to chaos too.
 You know, there's value to that.
 Whatever the hell stupid stuff you do when you get trashed,
 the over the top emotion of love usually or whatever,
 camaraderie, there's value to that too.
 Like as I get older, I realize,
 cause the world, sometimes especially when you get older
 and the world wants you to be an adult,
 in order to maintain the youthful spirit,
 you have to use all the tools you can.
 Alcohol is one of them.
 To do all the stupid shit you can,
 even if you're like getting older.
 To lower the inhibitions and.
 Lower the inhibitions.
 Against that taste of uncertainty
 that is the sweetness of life, right?
 To be able to go out and be a fluner at a party
 and not really know what you're gonna do.
 And it's, we have this draw to the wild side of life.
 As much as we try and build up order around ourselves,
 I think there's always gonna be an appetite for that.
 I've always, most of my life,
 I've always been a social drinker,
 but actually gave up alcohol a year ago.
 And I would add that to the idea,
 the repertoire for dealing with bigger ideas.
 Because alcohol is fun.
 It's a good times.
 It can be analgesic.
 It can do all of it.
 It can give you all of these benefits
 if you use the right amounts.
 But I got to the point personally
 where I was trying to wrestle with these ideas
 that are just so much bigger than me.
 That I, and I have this backlog of books
 that was growing faster than I could read them.
 That I just reached a point where I decided
 I wanted to start making sacrifices toward attaining that.
 And alcohol was just an easy one.
 It's you spend, even if you just drink socially
 on the weekends, you're probably spending
 five to 10 hours drinking, and then maybe another, what?
 Five to 10 hours recovering perhaps on the day after.
 So it was a difficult transition initially,
 but once you get through a couple of months,
 I feel amazing without it.
 I sleep better than ever.
 My workouts are better than ever.
 I'm sharper than ever.
 I'm more lucid.
 So I'm not trying to be a proponent for not drinking,
 but I just want to say.
 But you're a proponent for sacrifice in some.
 I am a big proponent for sacrifice, yes.
 Is there advice you would give to a young person today
 curious about Bitcoin, curious about how they succeed
 in the world or both career-wise and just in life in general?
 I mean, the strongest piece of advice I have for,
 this is beyond just Bitcoin.
 This is you managing your own personal and financial affairs
 is that you need to invest in knowledge first.
 It's not good enough to just follow the crowd
 and buy a 60-40 portfolio and put it in a Roth IRA
 and plan on social security.
 I mean, the world's changing much faster
 than any existing institution is going to be able
 to keep up with.
 So that's why I named the show the question,
 what is money?
 Like I think that to me is the rabbit
 that took me down the rabbit hole.
 It's like just asking that question naturally progressed
 to these other questions.
 Like what is value?
 What is government?
 What is the purpose of society?
 Speech, all of these things.
 So I would encourage people to arm yourself
 with knowledge and study.
 And like that, a lot of financial people always give you
 a line of advice and then say, this is not financial advice.
 Or like, this is financial advice.
 Like study, study, learn.
 Knowledge is power.
 Yeah.
 This is official financial advice.
 And you're exercising your divine trait,
 which is the logos, right?
 That we are these animals that can tell and believe stories.
 So it's our, it feels like almost a sacred duty
 to really sharpen that part of ourselves
 and use it to create the best world possible.
 And then, you know, the second one was the,
 I think health and fitness stuff.
 I was, maybe everyone does this in their 20s.
 They just live a little fast and beat themselves up.
 Not that I wasn't like I was living well
 and, you know, successful by a lot of measures,
 but I wish I had maybe gotten my act together
 a little bit sooner.
 I just think-
 Health-wise, morality-wise.
 Yeah, drinking, I think morality and eating.
 You know, I just was kind of doing whatever I wanted
 in some ways, let's say.
 Is there a value to a trajectory
 that includes a lot of mistakes?
 So maybe you're supposed to make the mistakes
 in your 20s.
 That's a great point.
 Maybe the 20s are all about the mistakes.
 Accumulate the most mistakes possible.
 Yeah, I don't-
 As quickly as possible.
 I don't regret any of it,
 but now that I'm kind of in this place where I feel good
 and I know the value of a good night's sleep and just,
 I've more deeply explored my own potential
 that I feel maybe a little regretful
 that I didn't do this earlier is all I'm saying.
 So maybe just exploring different sides of yourself, right?
 See what it's like to go and make a bunch of mistakes
 and be wild and crazy,
 and then maybe try to walk the straight and narrow
 for a few months and just see what it's like.
 There's probably a guy doing vodka shots right now,
 listening to this podcast with his buddies,
 and if you are, please take a shot for us
 for all the mistakes you should make in your 20s.
 And what about love?
 We talked about money is ultimately a mechanism
 by which you can pave a moral path through life.
 To me, one of the purest expressions that is love,
 broadly defined for a family, for others,
 for knowledge, for the world,
 is basically an optimistic open view to the world
 that embraces all that is beautiful about this world.
 So do you think about love often in a personal sense,
 romantic family, friendship, and in the broad sense
 about its value in a successful life?
 Yeah, of course.
 I'm blessed to have a two and a half year old daughter,
 and love is a word we throw around.
 I love these potato chips, I love you, man.
 I love you, my daughter.
 It's got so many different intensities,
 I guess you might say, but.
 I don't know, my intuition is that
 it is something very fundamental to the universe.
 Again, I know words unto it justice,
 but if we just proxy love with selfless action,
 the whole damn universe is selflessly acting, right?
 It's just unfolding.
 It may sound a bit hippie dippy,
 but my intuition is just that love
 is the core of it somehow.
 I don't have anything to back that up really.
 It's just.
 In the way you're framing it, it's making me think
 that love, we talked about sort of meditation,
 is as opposed to thinking from an egocentric perspective
 of you, the individual operating in this world,
 is allowing you to be empathetic towards the world
 and thereby think of the universe,
 think of the world acting through you.
 Almost like accepting this notion that ideas have you,
 you don't have ideas.
 That you're not existing in the universe,
 the universe is existing through you.
 It's sort of like, that's what selfless
 in that context means, is like embracing that thought.
 That's a weird thought.
 It's a weird thought that we're just here
 for a little bit of time.
 These meat vehicles, receptacles,
 and this much bigger thing is just using us,
 not in a malevolent way, but just like a river flows,
 is using us to create more and more beautiful things.
 Yes, yes, more and more beautiful things.
 We are the universe experiencing itself, frankly, right?
 So-
 That's a trippy thought, man.
 Yeah.
 That in some sense, the universe created us
 to experience itself.
 And we are one of the highest forms of beauty
 that nature has created, right?
 If we just think one of the most complex
 and adaptive thing, we're a reflection of nature.
 And another thing that comes to mind here is that
 Dalio has this quote where he says,
 truth or more accurately, an accurate depiction of reality
 is necessary for any good outcome.
 So when we think that love or value is primary,
 I think that too reinforces this thesis
 that acting out of love or acting out of proper moral action
 you're best reflecting the fundamental nature of reality.
 Therefore you're best creating the best possible outcomes
 or the things of the most beauty,
 whether that's your artistic expression,
 your children, your business, whatever it is.
 And Jordan Peterson goes deep into that
 where you have to listen to that sense of meaning
 in your life, or you might have some decision on paper
 that's so great this way, but your heart says no,
 your heart says otherwise.
 I've tried to listen to my heart throughout
 and I think that creates the best outcomes.
 But nevertheless, does it make you sad
 that you in particular, Robert,
 are gonna be dead pretty soon?
 As we talk about scarcity, one of the certain things
 that ensure the scarcity of the human experience
 is the fact that you and your consciousness
 are gonna be done, they have a deadline.
 Only time and Bitcoin are absolutely scarce.
 I'm fortunate, I guess I got started
 on this philosophical journey a bit when I was younger,
 but I got into Musashi and Sun Tzu quite a bit,
 who wrote, Musashi wrote the book of five rings,
 Sun Tzu wrote the art of war.
 And one of the things that, I mean,
 these guys were just absolute beasts,
 they lived and died by the sword
 and they were just very great equanimity
 about all things in life.
 And I also found this kind of in the stoic philosophy
 where they just are very cool with everything.
 And one of the lines there is that the way of the warrior
 is the resolute acceptance of death.
 And so I've always tried to think about that.
 Like, of course I experienced fear,
 I experienced everything that you do on a meat suit, right?
 Like anxiety and all the things,
 but I always try to have that higher order view of myself
 and that it's just a certain experience occurring
 at a certain level, but it shouldn't override
 your kind of highest order self.
 That's just resolutely accepted death
 and that this is your one play in life.
 So hopefully that propels me towards proper action.
 I think scarcity cannot help but lead to something good.
 Just like with this conversation,
 sadly must come to an end.
 The scarcity of it is what makes it beautiful.
 So Robert, this was one of my favorite conversations
 philosophically and in every other level,
 just the ideas and the way you express them around Bitcoin,
 around morality, around money has been really inspiring
 and really educational and I'm glad you're out there
 fighting the good fight.
 And I'm glad you wasting all of this time with me.
 It was really fun and thank you for coming down to Texas
 and having some good old brisket together.
 This was really fun, man.
 This was awesome, Lex.
 Thanks for having me, man.
 Thanks for listening to this conversation
 with Robert Breedlove and thank you
 to Fundrise, Element, Monkpack, and BetterHelp.
 Check them out in the description to support this podcast.
 And now let me leave you with some words
 from Nassim Nicholas Taleb.
 Anti-fragility is beyond resilience and robustness.
 The resilient resists shocks and stay the same.
 The anti-fragile gets better.
 Thank you for listening and hope to see you next time.