Don't have enough time to sit down and read all the best Bitcoin articles. Well, let us read them for you. This is a crypto Konami quick read. What is up crew? Welcome back to the crypto Konami podcast. We have got some Bitcoin story time coming at you today with another crypto quick read and read by your host guys Swan. That's me. The guy who has read more about Bitcoin than anybody else, you know, and I want to make an announcement first. I have gotten my tickets and I'm actually a Sponsor now for the bit block boom conference that will be happening on the weekend of August 17th and 18th the main event and everything is on the 17th and they have a brunch and like networking hangout thing for a number of hours on the 18th. And I'm really really excited about it already already found out that a bunch of people that I got to hang out with and meet at the Bitcoin 2019 conference will be there. So I'm really excited and if You want to join me if you're thinking of coming on and coming out to Dallas and joining us at the big block bit block boom conference. I don't know why that's so hard to say. I have a discount code now. I can get you 30% off of that ticket. And right now let's see. Let's see what those are there should be. See what the countdown is on the next time that the tickets increase. Okay. You got 15 days before the ticket prices increase again, and the the coupon code or the discount code is CC for crypto economy. Just the CC and that will give you 30% off the tickets. So if you want to come out to bit block boom, do not forget about your discount code and be sure to get your tickets before 15 days. From Tuesday, July 16th or before before the beginning of August so you can lock in the lower price. All right, so that's really exciting and you'll get a goodie bag with my logo on it. What's up? And let's see. What are we jumping into today? We are hitting one where you're hitting another one from Sue zoo and hasu which is its hasta fly. I think actually on Oh no hasu FL on Twitter and but these guys run or post a lot of things on Uncommon Core dotco. Sometimes I think it's just one or the other of them but they've right A lot of these things together and they have an amazing series called the Skeptics Guide to bitcoin and we've actually read all three of the pieces in that series on the on this show. In fact, what were they called NASA? Let me check them out here. There was an honest account of Fiat money was the first one these are not in like like right back to back is when we read these they're pretty spread out. So actually I'll link to these in the show notes so you can find them on anchor dot f m-- and go to the actual episodes page, but it's an honest account of Fiat money unpacking Bitcoins social contract and independent property rights and all three of them are amazing. I think my favorite out of the three is Independent property rights, but I think the first two are actually really good lead-in to like kind of a foundation for understanding the independent property rights argument, but I really loved that article. That one's just a wonderful one for analogies on what the value of Bitcoin is and what it's actually competing against people have these ideas that it's oh we're competing against V. So we're competing against the dollar and it's not exactly true. It's a stack of things that Bitcoin makes Possible and I really think the independent property rights article is one of the best at breaking down that concept. So I really love that one and we are reading today one of their newer art one of their more recent articles though. It was still is published back in March 6. So it's not exactly brand new but it's investing in Bitcoin and it's digging a lot deeper into a number of the concepts on. Why Bitcoin is valuable? How do we value it and is going to be a really really fun one. So without further Ado, let's go ahead and jump into ha Sue's and Sue's article on Uncommon Core dot co-investing in Bitcoin. We don't talk much about price in this blog, but we will make an exception today to show how to Value Bitcoin using a high-level approach will highlight three significant Trends in the world and suggest how either one of them could lead to increased demand for neutral private money in the future. how to Value Bitcoin On a long enough time frame valuing Bitcoin is straightforward. The market finds a price based on available supply and demand when more people want to buy Bitcoin than sell it. The price goes up and vice versa for most types of assets a price increase entices producers to make more of it pushing the price back down likewise a price decrease leads to a decrease in Supply making the price go back up as a result most It's tends to be relatively price stable near their cost of production. Bitcoin has a fixed Supply there will only ever be 21 million units and we always know how many of them exist the market can still try to create substitute Goods like other cryptocurrencies with similar properties to increase the supply. We fully expect this to continue to happen but money has immense brand value in the form of network effects liquidity and integration in existing Financial. Sure Bitcoins Supply isn't entirely inelastic to changes in demand, but certainly less so than other assets leaving upside to be captured by existing owners rather than producers. The sum of all Bitcoin multiplied with their price is called market capitalization comparing market caps of assets like fiat currency real estate stocks or Commodities allows us to see how much value I'll store in them at any given time Bitcoins market cap. Today is 80 billion dollars, which is small compared to what we could see as potential Target markets to disrupt. U.s. Dollar notes held abroad or around one trillion dollars including over 75% of all $100 bills in existence. Global base money is nineteen point six trillion dollars gold held for investment purposes around one point one trillion dollars privately excluding jewelry and 1.3 trillion held by central banks. Since the supply of Bitcoin and substitute Goods is less responsive to changes in demand. We expect Rising demand to manifest in a higher Exchange price. We see three primary sources of such future demand. demand for digital cash ninety percent of all money today is virtual. It is created when someone takes a loan and henceforth lives on a bank Ledger until the debt is paid and the money destroyed or it is withdrawn as cash the growing Trend away from physical cash to digital payments is understandable cash has the annoying property that you need to be in the same location to exchange. It. Most of us are also paid digitally for the work we do so to pay in cash when would To constantly replenish. It countries that have abandoned the use of physical cash. All together are called cashless. It can happen without coercion like in Sweden in other countries like India, the government has demonetized larger denomination banknotes in China digital payments serve as a tool of social control and the backbone for a new Social credit system central banks around the world are enthralled by the idea of negative. You've interest rates the ultimate Holy Grail of monetary control in a cashless Society. They can directly tax people's bank accounts to disincentivize saving and encourage quote aggregate spending in the form of consumption and investment digital payments are highly efficient and convenient, but they are not money when it comes to the properties that are parents and their parents have been used to it is a new form of money that Very concrete trade-offs digital payments receive their efficiency gains from including a trusted third party in every transaction that maintains a central Ledger that it can much easier update when told to this Arrangement doesn't come without drawbacks the intermediary monitors. All Financial activity can refuse transactions. He disagrees with or even confiscate funds all either cash on the other hand can be exchanged peer-to-peer between people the transactions are permissionless private and immediately final no one can revert them after the fact as our Reliance on financial intermediaries grows. So does the importance of who controls them today a small number of payment companies have a disproportionately large impact to Define what speech is acceptable online? What businesses should be allowed to operate money is the lifeblood of the economy someone who is cut off by payment processors loses his autonomy and almost any chance to run his business. Every year the world is moving closer towards going cashless. The reason in our opinion is that the benefits of digital payments are immediate and visible to the user while the downsides are invisible until they matter as a consequence the global supply of physical cash will continue to drop this drop. However is not an accurate reflection of the demand to hold it government's central banks and large corporations have an incentive to push for a cash flow. Is society though not all of them do while cash has no coordinated commercial interest backing it. Demand for cash is also under represented as long as Financial intermediaries can be horribly trusted which isn't guaranteed to last forever. It seems unnecessary like fire Insurance until it burns Bitcoin is the first and only form of money that offers cash like properties, but can be stored and transferred digitally when governments no longer provide physical cash. There could be a lot of excess demand for an asset with Like properties looking for a release valve and Bitcoin is in a unique position to offer that. Demand for a global neutral settlement networked digital payments work for parties who have a middleman that they can trust since World War Two the US has been this trusted middleman for most of the developed world lately. The US has shown they are willing to weaponize the financial system to command their political will by pressuring Swift into cutting off Russia and Iran as part of their sanctions. It is not well received by there. Lies additionally political moods in most countries are turning towards isolationism both in Europe with brexit and revolts in France as well as the US the trade war with China threats to leave nuclear arms treaty with Russia u.s. LED soft power institutions, like the WB IMF and WTO are gradually losing their influence. These were the main tools for projecting the u.s. Power of Broad and their disenfranchisement will leave power vacuums and uncertainty in their wake we believe the world is currently moving away from having one trusted protector an intermediary to a multipolar world order. As frictions between world powers increase the willingness to trust Financial infrastructure controlled by someone else will decrease that creates demand for a financial Network that is not controlled by one party but is politically neutral even online censorship is on the rise. China's internet is effectively cut off from the rest of the world in Russia is planning to follow suit Bitcoin fulfills the conditions of being neutral and censorship resistant while in the past controversial activity found a home in Bitcoin like Silk Road and Wikileaks the world could wake up to the benefits of censorship resistance as a positive trait. That is no longer quote just for criminals. All right. I'm going to need a break to get out of this heat and get myself a drink. I'm so I'm going to air out my Bitcoin blankie for it. We will hit our sponsor and we will jump right back into this piece by hasu fly and or hasu and suzu at uncommon cord dot co-investing in Bitcoin. For anyone who has a podcast anchor cannot be beaten particularly for trying to get off the ground their entire platform is free. This includes unlimited hosting both in audio that you upload and how much your listeners download. I have uploaded an incredible library of audio now and I've never paid anchor a dime. In fact, they connect me with other sponsors and have run an ad consistently on my show. So they've paid For exposure to my audience that's really hard to beat even if we ignore that I can record directly in the app or my browser. I don't need any other software. If I don't want it I can edit at sound effects clips and they automatically published to all of the top podcasting platforms. I never had to do a thing. So if you were thinking of starting a show or already have a podcast, there's no better platform out there check out anchor by downloading the app or go to Anchor dot f FM today Demand for a hedge against the failure of the existing system. Many people are worried about the over-leveraged state of the world economy and our financial system both consumer and sovereign debt levels are at all-time highs relative to GDP s while interest rates, especially in Europe and Japan are still zero when the economy slows down. There is little That central banks can do to ease the pain and kick-start the economy. Further a widespread shift in demographics is created a massive gap between future government liabilities and income from taxes. For example, the US government doesn't just oh 20 trillion dollars in sovereign debt, but 10 times as much in domestic debt in the forms of entitlement programs many believe that the only way to pay up is by throwing the US dollar under the bus and devalue it to meet at Least nominal obligations given this is a doomsday scenario and not very fun to think about but it's a reality that any investor has to deal with today gold has traditionally been at trust anchor when investors flee out of fiat currency, but it is also highly co-opted by governments and hard to secure and repatriate as some countries experienced today. We believe that over a long enough time frame Bitcoin can become the gold of the internet. Of generation in take its place as a hedge against government and central bank failures Bitcoin as doomsday insurance is a narrative that is picking up steam and that is now commonly cited even by Skeptics such as Ken rogoff as a primary use case of Bitcoin as more people are getting worried about systemic risk demand per Bitcoin as limited quote Insurance tickets could rise accordingly that Bitcoin does in fact work. Work as an exit ramp for week. Local currencies can be seen in Venezuela and other South and Central American countries where Bitcoin is increasingly adopted quote on the ground as an alternative to the u.s. Dollar a recent study about global data from the peer to peer exchange localbitcoins found that quote in the fourth quarter of 2018 as bitcoin price and interest seem to hit their doldrums 23 countries on LBC had their best quarters ever almost All of these countries are in the developing world end quote. The u.s. Dollar is still the most sought-after black market currency. But Bitcoin is better at some things that make it an attractive alternative for people in developing countries. It's easier to protect against confiscation for example, using a brainwallet and transfer digitally especially across borders Skeptics of Bitcoin often miss the fact that currency competition is like running from a bear. You only have to outlast your slowest friend Bitcoin in its current immature. Warm competes with the weakest of Fiat currencies not with the US dollar euro or Japanese Yen and does so despite its price volatility. Is Bitcoins volatility a problem? I'm often asked if Bitcoins price volatility will prevent adoption Bitcoin is volatile for two reasons first Bitcoin Supply is fixed and doesn't react in changes to demand second as a young currency. It is mainly used for speculation today. It's price is a function of deferred expectations of growth and expectations of other people's expectations. And so on all of which get revised all the time the best way to think about volatility is as a temporary transaction, Just as Bitcoins market capitalization grows less of its value will be from speculation as there is less future growth to bet on and more from fundamental usage that will lower Bitcoins volatility and make it cheaper to use while it can be seen as a chicken-egg problem initially Bitcoin needs adoption to become price stable with many forms of adoption require price stability using Bitcoin has a different value to different people the coins success as money shouldn't be judged. By its ability to perform consumer payments instead Bitcoin is first adopted by those who can tolerate the costs because it helps them better than existing Alternatives or because there are no Alternatives with every additional group of people Bitcoin serves. It becomes less volatile and cheaper to use making it more attractive for use cases, which are slightly more price sensitive a positive feedback loop the fact that anyone uses Bitcoin today. Despite its volatility and complexity is amazing to me and should be seen as a ringing endorsement by the market. summary Bitcoin is a new Financial network with a token also called Bitcoin but with a lowercase B that is currently in its monetization phase during this phase. It's price is largely determined by expectations of future growth making it expectedly volatile despite the cost and complexity people use Bitcoin on the ground today in developing countries and to make unstoppable transactions online. The more people use it the less volatile. It will become encouraging further adoption. Since Bitcoins Supply is fixed and substitute goods are hard to make the price is largely a function of the demand to hold it. We identified three major Trends in the world that could lead to significant demand down the road demand that Bitcoin is well positioned to serve often as the only competitor and that could create significant upside for existing holders. Thank you to Nick Carter for his excellent feedback disclaimer. This content should not be relied upon as legal business investment or tax advice. You should consult your advisors as to Legal business tax and or other related matters concerning any investment furthermore. This content is not directed at nor intended for use by any investor or prospective investor and they not under any circumstances be relied upon when making investment decisions. All right, and that concludes investing in Bitcoin eyepiece another great piece by hasu and suzu on Uncommon Core dotco and I've linked or I will link to the other three the three parts of the Skeptics Guide to bitcoin series as well as another one. We actually read app. There's the was it the Bitcoin is ahead. Bitcoin is a hedge against the cashless society, which this kind of extends that concept on this article does so really really good stuff up on our Common Core dotco. I definitely definitely encourage you to check those guys out and follow hasu as well as suzu on Twitter. I will link and post all that good stuff. You'll be able to find their tags right there in the Twitter post as well as at the actual show notes page. All right. So let's hit a couple of these topics here because this lays out a really just a really great like kind of macroeconomic like that high level view of some of the major shifts that are happening in society and really own like kind of a decade's long time frame here that we're looking at and then showing where Bitcoin kind of fits into all of this and the first one which they talked about at length in the Hedge. Cashless Society article that we've covered in the past is about the demand for digital cash. And this is a really great. I love this line in particular and the referring here to the the sort of underrepresented demand for cash, but they said quote the reason in our opinion is that the benefits of digital payments are immediate and visible to the user while the downsides are invisible until they matter? End quote I really really like that argument because it's exactly the truth when you're moving into the digital space. All you see is the convenience you're all the trade-offs that you're actually making are completely invisible. You don't really see that you don't see the risk of trusting someone else with whether or not you can transact or with your money as an immediate as an immediate risk that you're taking when you see it in your app. You're used to just Gagging okay. Here's my balance. This is the money that I have it's not until it's taken away. It's not until they call you they freeze a payment and call you up and ask you why are you making this payment to so and so it's not until they threatened to shut down your bank account because you transacted with the wrong country or something like that like you that cost is invisible until it literally slaps you in the face. So for the most part everybody is adopting it out of convenience without realizing the massive amount of Power they are losing in the process because they just want a cheap easy way to pay for something online or pay their friends, etc. Etc. And so even though like I thought that was a really good way to explain why even though there's a huge drop in the demand for physical cash or just cash in general is that it's actually not an accurate reflection of the demand to hold it. It's just a reflection of the fact that the cost. downsides to this are invisible and the benefits are immediate and completely transparent and I think that they are right particularly as government's China Russia the US the UK like all of these all the modern world because the financial situation is in such Dire Straits they are going to be raining in very tightly as much control over people's transactions and capital as they can because otherwise they are going to pay the price and they don't want to they don't want to give up their power. So they're going to figure out how to make other people pay for it and they do that by promoting and pushing the cashless Society where they essentially are running the puppet strings behind everything they can decide whose accounts get locked and who actually has owns their money and who does not and and just like well would the case of massive Financial liabilities is they're going to devalue the dollar and they can only the Point of that to devalue the dollar is to make it so that everyone who is holding the dollar everyone who is using the dollar everyone who was getting paid in the dollar their value is sucked up to pay for the government's in the central bank's irresponsibility because that's the thing. They don't want they don't want to lose their Central Bank because that means they pay for their irresponsibility. It's a whole lot easier if you just starve your population and keep your power. So that's what they'll do. They'll kill the currency. They'll they'll run the pump. at strings and make sure that they are the ones telling the bank exactly who and who has who owns their money and who can and cannot transact and because all of this is coming to a head because it's inevitable that the debt has to get paid back or something has to break somewhere that that type of power is going to be exerted in a far stricter and far more totalitarian way and the demand for digital cash is going to explode The the demand to have something that is digital that is outside of the realm of their manipulation of they're attempting to push the irresponsibility onto attempting to push the cost of that on to other people who did not make the decisions who did not destroy the economy who did not run up hundreds of trillions of dollars in debt. People will not put up with that. Like people will want to people will be out for survival of themselves not less less their their political ideology. Like if they if they have some like for somebody else to pay for it or like I have like everybody should pay their taxes ideology when they are starving when they can't put food on the table. They are going to gladly give up their belief that they should be paying taxes in order to Five and in the same way they're going to gladly give up the fact that they should be using the US dollar for everything. They'll probably still promote it. They'll probably still scream it to everyone else is like know the dollar is our country, but they'll have Bitcoin or some real asset that is not even this is not being bled dry of all of its value so that they don't die and that's exactly what digital cash does it say Bearer instrument that allows someone to hold value without a political. Institution being able to destroy it through through just through nothing more than political Authority because that's what they're doing in the alternative is there they're simply saying that all of the value is because we allow you to have it based on our Authority and digital cash is we have the value. You have to figure out how to get it from us. It's a it's a complete shift in the power dynamics one is you're allowed to have value the other is Have value you have to explain why I'm giving it up where you have to take it from me and there's a very very different. This is very different Power Dynamic. And I think without question there is no way that that demand does not increase substantially and it already is because guess what people don't like to be slaves and that's what we're talking about. We're talking about political Authority deciding who what when and where things can happen value should move. and what vision of the world should be funded and people aren't going to put up with that they will they might still wave their flag or you know vote for this person or that person but when it comes to their own lives and their own Freedom, they will prioritize themselves and they will seek to find that freedom and Independence for themselves regardless of what any politician or anyone says, it's just going to it's going to cause massive growth in my In exactly those things the black markets which would just be the which would just be the moral Market as opposed to the politically authoritative Market. Or the voluntary Market I guess is probably the better word like because you think about when we're talking about the black market in this scenario, we're talking about all the quote unquote extralegal Market, which means that every time that you know some young person in your neighborhood comes to come through and like Cuts your grass and you pay them cash and you know, you don't report it and they don't report it. That's the black market. That's what we're talking about. We're talking about people who are trading and just not telling everything exactly to the government now, obviously it includes Things that are socially unacceptable or social pariahs like prostitution and drugs and stuff like that. But the vast majority of it when we're talking about just cash transactions and what will be largely the same experience probably in digital cash where people are just doing small under-the-table transactions so that they are not being robbed blind every time they get a paycheck or so. They you know, they sell their couch without reporting the quote unquote. The income, you know that kind of thing when when people are producing a little bit on the side, like you'll think this is I think it actually makes sense that this would increase with the kind of hyper specialization that we're getting with the expanse of the internet markets and like the gig economy and all of these things is that this will this will help to push the demand for digital cash because people will be looking for alternative ways to make and earn money where it is not being destroyed. Because if you if all you can do if whatever your your quote-unquote open market. Your legitimate Market job is if the pay that you get from that is constantly being destroyed is being fined and taxed 13 different ways. Then you're not going to you're not going to like stop wanting your life to be better. You're not going to stop wanting to have savings and you're not going to stop caring about the fact that you're completely uncertain about. Out your situation in one week that you know, if you had a flat tire you might be absolutely financially ruined for the next two years because you had an unexpected 300 dollar purchase and a lot of people are pretty much in that situation already because of the debt bubble that are bad are crap economic policies and price controls has pushed onto the economy. So we're already teetering on the edge and now we're talking about like a collapse of that debt bubble because we've got Interest rates at zero and they still can't prop this thing up. It's not going to get any better and people are not going to seek to get less from what they produce. You know, they're trying to keep the freaking world running. They're trying to keep their they're trying to stay fed and keep their families fed. And these people are just going to stand by and watch their currency lose 90% of its value or have what little savings they actually do have confiscated through negative interest rates. That like, you know, you can't they can't move it or they can't like withdraw it people that just the populations are not going to keep up or put up with that. I mean, it's just not gonna happen and we've already got this huge increase in uncertainty and loss of trust in all of these institutions and when the price gets clearer and clearer and Phenomenally larger and more obvious that trust will break down completely and people will seek something. That's this one of the other on major major. Sources of demand here for Bitcoin that they talk about is it's a political nature. It's the fact that it's completely outside of the political world. It is this it's like a hedge. It's like gold as a insurance ticket for the failure of the existing system, which I think is becoming more and more obvious and I'm glad that they mentioned that it's not just about the 20 trillion dollars in general debt. That is to be Learned about we're also talking about a just an unbelievable amount literally near or a little bit over a hundred trillion dollars or more in domestic debt that they think that we're going to have all of these welfare and liability programs like these unfunded liabilities for all of the programs just for people in this country. Like they're not going to get their pensions. These people are not going to get there. So, Social Security and and and just as they said they will give they will make sure it's paid for in the nominal since you'll get the the actual dollars but they won't be worth anything there. I don't think it's politically feasible for them to say. Oh whoops we screwed up and we can't pay for any of this crap. So we're not going to pay it. What they'll do is they'll send you the check for the $50,000. Didn't they promised you would get out of social security or whatever it is, but that $50,000 will not be enough to buy a carts worth of groceries. When when the bill for those dot Linda's liabilities actually get priced in it will not buy you hardly anything. That's what will happen. There is simply no way to pay off the liabilities. Like it's it's absurd and the fact that we're teetering. On the edge of any kind of stability while we have deeply deeply underpriced interest rates already like there's nowhere to go. So it's I don't know our financial system Ira financial situation is so such a massive problem. I think that demand a loan for Bitcoin being a neutral Neutral in the sense that it is not controlled. It is not inside this financial system and it's not what's the word it's not exposed to all of those liabilities. Like there's no, you know, no Bitcoin in the system is backed by someone else's debt almost all of the u.s. Dollar is these if these debts come do and they don't work out like if they don't get paid there's going to be a massive collapse. We are building all of our suppose. Financial stability is built on promises. We know no one can pay back. So it's it's just this giant illusion. It is the definition of a bubble and it's going to come crashing down and you will have to have some Sovereign form of value in order to escape it. Otherwise, you are an involuntary payer of that debt of someone else's debt and irresponsibility and then this quote here. Because it because another huge thing is just the demand for the global neutral settlement Network because Swift and well, let me go ahead and I'll read the quote and then kind of expand on the little bit here. So quote u.s. LED soft power institutions like the WB the IMF and the WTO are gradually losing their influence. These were the main tools for projecting us power abroad and their disenfranchisement will leave. Power vacuums and uncertainty in their wake we believe the world is currently moving away from having one trusted protector and intermediary to a multipolar world order end quote. I think this is a really really powerful statement. I think it's absolutely right. I think what we are seeing right now is the breakdown of trust the breakdown of that what has essentially been a world a one world government in the modern in the modern sense for quite some time really largely since the since World War Two arguably more more potent Lee since like the early 70s, I think. But these these institutions that they haven't exerted a lot of power before these are all you know, extra judicial institutions, like nobody like there are these institutions when they exert power they're destroying the sovereignty of all of these individual companies countries, like nobody votes for these like I don't I don't vote for the people in the IMF or like these huge overarching like Global Regulatory Agencies. They say oh these people or these companies have to share this certain certain information about customers with everybody between these other countries. Like we don't get the vote. Like these aren't Representatives. These are just authoritative structures that decide this is how it's going to be and because they run the rails they are the ones with the puppet strings for the Swift institution. The the settlements Network they've always threatened their power essentially to Cut people out of the you know, modern Financial system. So it's like, you know and imagine think of it sort of in the sense like you could just cut someone's internet off if they started misbehaving you could disconnect them and make them unable to access the internet. Well, we've got the equivalent of that with a global settlement Network because we really only have one it is a it is a highly controlled highly centralized. Global Financial settlement and that's exactly what needs to be replaced and there will be massive demand for anything that competes with that. It can't be controlled because and the more that these these institutions actually exert their control the more they restrict what people can do in which countries can can settle or can use this network. Well, then the more people they are pushing out forcing them to You find an alternative and Bitcoin literally is the only trust minimize alternative out there. The only one that is jurisdiction lists and stains any chance. It seems right now to stand up against some of these nation states are these large multinational institutions that think they run everything and so it's only going to increase the pressure for building and using exactly those sorts of Alternatives as there. Because they lose their influence. They're going to grab onto it tighter, you know, it's just this this kind of how power is when it's when they start to exert it really really forcefully and aggressively that that you know, they're losing it because they have to cling on to it as hard as they can hoping that it doesn't fall away from them, but it slipped its slipping through the cracks like it's like it's like trying to hold water in your hand. It's just going to leak out no matter what they do. And because of that like when they're with Iran and Russia, like they're trying to essentially knock them out of the modern Financial networks. What are these countries going to do? They're going to build Alternatives. They're going to figure out how to use alternatives are not going to sit with their thumbs up their butt and just pretend it just be like, oh, well, I guess we're all just going to start it up and we're not going to be part of you know, the modern world and we'll just, you know, cut our Internet off while we're at it. No, they're going to seek an alternative. They're going to figure out how to use something else which is funny because this is this could very well lead to another one of the ways. I think Bitcoin will be demonized in the short-term is that all of these countries that are being pushed out of the Global Financial system all these countries that are being hit with sanctions and stuff will start to use something like Bitcoin will start to use the alternative Financial infrastructure, and then they'll double e get Associate it like the US these in multi National or International organizations in the United States when they start getting their marketing campaign against Bitcoin because it starts to threaten their power hold they will use the fact that look North Korea is using Bitcoin. Look Russia is using Bitcoin. Look Iran is using Bitcoin. It's like well no shit because you cut off their all their only alternative. So they're using it because it's the one thing that you can't control and they'll claim look out. evil Bitcoin is so I think this is probably going to be a big part of the marketing campaign against Bitcoin when the FED starts to realize that they can't make whatever monetary decision they want because Bitcoin is you know that elephant in the corner of the room that says we're going to soak up all your value if you do something stupid, so I think it's very likely to expect massive demand just because of Bitcoins incredible neutrality and the fact that it is a global system that cannot be censored and I think the fact that people in Iran are using it to fact the people in Venezuela are using it the fact that people in North Korea are using it and China these are proof. These are proofs of concept of of this incredible value potential and it is it is in no way a deterrent or a negative thing for Bitcoin. It's proof of Bitcoins, unbelievable neutrality and the fact that it is absent of any jurisdiction that it is absent of any single authorities control its outside of that reach and I think that's an incredibly powerful statement and a position that makes it worth Arguably tens of trillions of dollars. I absolutely think that this just these three things alone, like just the these major trends that are happening in the economy. And in the world in the modern Financial world, I think these are enough for it to be vastly more valuable than gold is right now, I think it's a better hedge. I think it's a hedge. It's looking toward the future. Future and the fact that it's going to get easier and vastly more capable because it's a programmatic like it's a programmable money. It is a totally digital. It can be transported across any border without having to transport anything physical you can just memorize a seat phrase and move to another country. I think it's benefits over the past Alternatives that hedged against problems like this and try to actually put a check on these massive imbalances that we're having to deal with. I think Bitcoin is vastly vastly better at proving. It's neutrality its lack of borders its censorship resistance. Its capacity for digital exchange and Trust minimized relationships in the fact that it is a hedge. It is a non-correlated asset that will do its own thing completely irrespective of the financial system. It's just not part of that system and as trust breaks down in the Legacy Financial System and and it's conflict gets worse and more exaggerated a people will seek to leave it and it will it will happen in massive waves. So with that we'll go ahead and close this one here. I just thought that was a really good article per usual a huge. Thank you again to suzu and hasu for their continued awesome work. Do not forget to check out Uncommon Core dotco. They really just have they always as have just really really good stuff to read The Collection over there is great and they are responsible for for for some of my favorite analogies and explanations as to why Bitcoin has value in the first phase in the first place just in the general sense of like what you what Bitcoin makes capable if you're using it as an alternative to The Current financial system and what guarantees it can actually give you and again part 3 of their Skeptics guy. To bitcoin series The Independent property rights Bitcoin in the promise of independent property rights is one of my absolute favorite on that and they talked about the what this stack of Bitcoin is actually competing with as far as like the court and the property and the actual governance system that we are used to or the thing that we think of is like a default in how Society is organized that Bitcoin is an alternative measure to that. It's a Twerking alternative to it and it's one of my favorite articles. So I definitely encourage you to listen to and or read that one. I will link to both of those. I will link to all the previous episodes actually if I can gather them all together that we've done with these guys in the show notes. All right guys, thank you so much for joining me. This is the crypto economy podcast, and I also want to give a shout-out. I have recently gotten some month. Supporters from anchor dot f m-- the if you go to the episode you can actually have there's a little button that says support this show and we have recently grabbed two new supporters, Chris and David, I won't say their last names for their privacy, but I just wanted to say thank you guys so much. That's awesome. I it really validates what I'm doing here. It makes me feel good. Like I'm providing value for people and I'm going to try to figure out out how to have a goodies for the guys who are supporting the show monthly and actually doing that because that's a huge as a huge thing for people to actually like offer up like it's a monthly it's a monthly subscription to something that I'm offering for free and that's just a huge. It's a massive gesture in like what it means. So I really want to be able to offer something to the people who do that and just wanted to give a shout out and say that I've got that Coming. So thank you guys so so much for doing that and if anyone else would like to support the show just go to the Anchor dot f m-- page with the just go straight to the show notes and there will be a button either under just the Normal book crypto economy page or the episode itself that says support this show. So I definitely encourage you guys to do that. If you're getting value out of this, it makes a world of difference and thank you so much to everyone who has and lastly the other thing that you can do to Support the show you share it out with everyone, you know in the crypto economy and Bitcoin space because this is where we're going to read and talk about and discuss and explore all of the amazing stuff in the crypto economy. The new privacy Technologies how Bitcoin changes the Dynamics of how we organize and cooperate in society and all of the fascinating changes that will come with it and the history the cypherpunks the people everything that's made this. Possible and continue to build and make it stronger for a future that solves these massive macroeconomic problems with just powerful new networking Technologies. And that's why we're here because it's a human right? It is our right to own ourselves our lives and our value and Bitcoin is beginning to make that possible in a world where that right is being lost faster and faster. So, let's build the crypto. Tommy let's all become digital Nomads and explore this crazy new world. Thank you for joining me. I am guys swam the guy who has read more about Bitcoin than anybody else, you know, don't forget to share this out. I love you guys. Thank you so much and I will catch you on the next episode and until then take it easy guys.
Today we read yet another great piece by @hasufl and @suzhu available on uncommoncore.co on the core value offered by Bitcoin as a system and the high level trends in macroeconomics and technology that could lead to enormous future demand for just such an asset. A big thanks as always to the amazing work produced by Hasu and Su Zhu. You must check out their blog over at uncommoncore.co where you can find many other great works for understanding Bitcoin's nature. Below I've linked to the ones we have covered previously on this show:  An Honest Account of Fiat Money: https://anchor.fm/thecryptoconomy/episodes/CryptoQuikRead_197---An-Honest-Account-of-Fiat-Money-e2ndo3 Unpacking Bitcoin's Social Contract: https://anchor.fm/thecryptoconomy/episodes/CryptoQuikRead_198---Unpacking-Bitcoins-Social-Contract-e2oct5 Bitcoin and the Promise of Independent Property Rights: https://anchor.fm/thecryptoconomy/episodes/CryptoQuikRead_225---Bitcoin--the-Promise-of-Independent-Property-Rights-e3j6b8 Bitcoin As a Hedge Against the Cashless Society: https://anchor.fm/thecryptoconomy/episodes/CryptoQuikRead_227---Bitcoin-is-a-Hedge-Against-the-Cashless-Society-e3l5ne  ---   This episode is sponsored by  · Anchor: The easiest way to make a podcast. 