Honduras Banning Bitcoin Transactions?
Summary
TLDRThe video discusses Honduras's attempt to ban Bitcoin, contrasting it with El Salvador's adoption under President Bukele. Speakers argue bans are futile since Bitcoin is decentralized money, not technology. They cite China's failures to ban Bitcoin despite surveillance and threats. Instead, grassroots Bitcoin adoption bubbles are key, like in El Salvador. Speakers conclude Bitcoin is an idea that can't be stopped, as states still incorrectly view it as technology, not money created from digital irreproducibility.
Takeaways
- π± Honduras recently passed a law restricting Bitcoin, going against the trend of other Latin American countries embracing it
- π El Salvador has seen lower homicide rates and more peace since adopting Bitcoin as legal tender
- π‘ The leadership in countries like Honduras likely doesn't trust their own citizens to handle financial freedom
- π° Honduras has its own fiat currency that it can print leading to money illusions for its citizens
- π₯ Bitcoin can't be stopped by any country, even authoritarian ones like China
- π± Bitcoin adoption happens bottoms up through grassroots effort, not just top down laws
- π There are now Bitcoin circular economies functioning in many Latin American countries already
- β Attempts by countries to ban Bitcoin are a rookie mistake since it operates as money, not just technology
- π‘ Bitcoin created digital scarcity only once, no other cryptocurrency can reproduce this
- π Mrs. Watanabe (Japanese housewife investors) are starting to invest more into Bitcoin recently
Q & A
Why does the host believe Honduras is 'missing the boat' by restricting Bitcoin?
-The host believes Honduras is missing an opportunity by restricting Bitcoin while other Latin American countries like El Salvador are embracing it. He thinks there may be political interests or central banks influencing the Honduran government to restrict financial empowerment of citizens through Bitcoin.
How does the homicide rate in El Salvador compare to Honduras?
-The host cites statistics showing El Salvador has one of the lowest homicide rates in Latin America at 2.2 per 100,000 people, while Honduras has one of the highest around 51 per 100,000.
What is the host's perspective on Bitcoin bringing peace?
-The host believes Bitcoin and economic liberty, as embraced by El Salvador's president, have brought more peace and reduced gang violence there. He thinks Bitcoin encourages a mindset of low time preference and different governance models.
What is the national currency of Honduras?
-Honduras uses the lempira as its national currency. One guest points out Honduras can print its own currency and may be restricting Bitcoin to maintain monetary control.
How does the leadership in Honduras differ from El Salvador?
-One guest argues the Honduran government does not trust its people like El Salvador's president does. Honduras is implementing more monetary control while El Salvador is empowering its citizens economically.
Can governments truly ban Bitcoin even if they try?
-The guests argue Bitcoin cannot be stopped or banned entirely. Even very controlling governments like China have failed to completely restrict Bitcoin despite harsh measures.
Why is Bitcoin adoption growing in Japan?
-One guest discusses Japan's high household savings rate and appetite for trading currencies, which may fuel rising Bitcoin adoption there as an alternative reserve asset.
Why do government bans treat Bitcoin like a technology?
-One guest makes the key point that Bitcoin is money, not just technology. Banning it fails to understand its nature as a new form of money fueled by collective consciousness.
What is digital irreproducibility?
-This refers to the one-time creation of something, like Bitcoin, that provably cannot be reproduced digitally. Bitcoin's core innovation is creating digital scarcity that cannot be replicated.
How can countries adopt Bitcoin most effectively?
-The guests argue grassroots Bitcoin adoption is more powerful and organic than top-down government bans or restrictions. Building local Bitcoin circular economies can overcome negative policies.
Outlines
π Honduras and its laws against bitcoin in contrast to El Salvador and president buchali
The paragraph compares the stricter bitcoin laws in Honduras to the more favorable bitcoin policies in El Salvador under president buchell. It suggests Honduras may be 'missing the boat' and speculates on reasons why Honduras passed laws restricting bitcoin, contrasting this distrust of people with the positive relationship between president buchell and the Salvadorian people.
πΈ The problem with fiat currencies and the incentives they create for governments
This paragraph analyzes problems with fiat currencies, specifically the Honduran lira. It discusses how governments can weaponize fiat currency through policies like taxation and emphasizes the controlling relationship this dynamic creates between governments and their citizens.
π± The inevitability of bitcoin adoption regardless of government bans
The paragraph asserts that government attempts to ban or restrict bitcoin are ultimately futile. It uses China and the growth of bitcoin globally as examples, stating that world leaders will eventually have to 'get on the arc' and adopt bitcoin even if dragged kicking and screaming by their citizens demanding economic freedom.
π Increasing bitcoin adoption in unexpected places like Japan
This paragraph highlights growing bitcoin adoption in places like Japan, noting that adoption is still in the early stages and predicts increasing demand from large pools of capital globally. It emphasizes that the path forward for bitcoin is steadily up.
Mindmap
Keywords
π‘Bitcoin
π‘El Salvador
π‘decentralization
π‘financial empowerment
π‘adoption
π‘bans
π‘fiat currency
π‘circularity
π‘bottlenecks
π‘irreproducibility
Highlights
Honduras recently passed a law restricting Bitcoin, while El Salvador has embraced it
The homicide rate in El Salvador has dropped dramatically since adopting Bitcoin, suggesting it brings peace
The leadership in Honduras likely doesn't trust people to handle financial freedom responsibly
The Honduran government prints its own fiat currency, the Lempira, contributing to economic problems
Governments tend to increase control and reduce freedoms when they don't trust their citizens
Fiat currency enables governments to force submission through taxes and illusion of value
El Salvador already used the US dollar, making adoption of Bitcoin easier
Grassroots Bitcoin adoption happens from the bottom up before reaching mainstream
President Bukele brought top-down Bitcoin adoption to El Salvador
Pockets of Bitcoin adoption globally will eventually join up
China has been unable to successfully ban Bitcoin despite strict controls
Bitcoin can't be undiscovered or uninvented, like fire or the wheel
Attempts by governments to ban Bitcoin represent a misunderstanding of its monetary nature
Bitcoin created digital scarcity and irreproducibility only once, in 2009
The market increasingly accepts the reality that Bitcoin cannot be stopped
Transcripts
I would love to do a a podcast or just
an episode called wrong side of History
just go through all throughout people
throughout history who were just on the
wrong side you know people who are like
ah those four guys from Liverpool they
sound like dead cats or whatever just
everyone who missed the boat and it
feels like maybe Honduras is missing the
boat because it all these other Latin
American countries I mean I've traveled
a little bit throughout Latin America I
have not been to Honduras but I'm and
I'm meeting a lot of people from other
Latin American countries and they're all
saying man I wish we had a boul but then
Honduras passes this dumb law basically
saying you can't use Bitcoin or
something like that which leads me to
believe and maybe you guys have more
information it just just as a guess
there's somebody central banks within
that government paying off politicians
or something that's why they they did
that or they're like oh my God we we
can't let people get financially
empowered like they're doing in in El
Salvador so we got to shut this down
what what is your take on Honduras
passing this very like bad Bitcoin bill
or law or whatever it is well I'll also
point out that President buelli just in
the past two
days tweeted a link to the um a a chart
showing the the homicide rate across
Latin America and El Salvador was at the
very bottom meaning it was the safest
and up at the top it was either the the
very top or in the top three was
Honduras
so uh the well Ecuador was higher than
Honduras actually bizarrely I mean
Ecuador has fast become uh very uh
dangerous but uh Honduras is a very
dangerous place right their their
homicide rate was something like 51 per
100,000 versus El Salvador's
2.2 and you know Max is often pointed
out that Bitcoin brings peace right uh I
think this this kind of goes hand inand
and you see that in El Salvador you know
president belli announced his policy of
economic Liberty and under economic
Liberty came Bitcoin and Liberty brings
you know Bitcoin is peace Bitcoin and
economic Liberty brought peace uh and I
think you see that in the results in El
Salvador uh he brought in the uh the war
and gangs after Bitcoin and now we have
a lot of peace and I think they all go
together in terms of the mindset of the
Low Time preference and just your way of
viewing the world and viewing the
governance model of the world and maybe
if they adopted Bitcoin and Honduras
they might have a little bit more
success like they do in El
Salvador well you know it's um it's an
interesting case study isn't it I think
that with President belli his secret
weapon really are the people of El
Salvador the Salvadorian people are so
kind-hearted and beautiful people and
and they love the president the
president loves him and it's a great
relationship and I think that he trusts
the people to do the right thing and by
making Bitcoin legal tender for example
and by passing economic empowerment laws
he's essentially throwing the keys to
the people and saying look this is your
country and you know you see t-shirts
all over El salavador finally it's ours
you know it's back it's we got it back
El Salvador is ours you know finally
after are not only 50 years but going
back 200 years so in Honduras I think or
any country the for the leadership
essentially at the end of the day they
don't trust people they don't trust the
people um and you see that in the US and
you see that in other countries see that
in Canada playing out spectacularly the
leadership there does not trust the
people living in that country to do the
sensible thing to do the common sense
thing so they reach for all the levs of
control they think that we need to
insert more control and that we have a
problem the problem is we don't have
enough control and um it's the tragedy
of being in power is that you seek more
power and that only exacerbates these
problems so Honduras is taking the
opposite course one needs if one wants
to do what we're seeing and I think it's
it's fiat currency right that's the
problem for them is they have their own
currency the Lira and uh they can print
it and I think just like what president
buelli spoke before CPAC the bit about
the two minutes 36 seconds about uh the
dollar I think you know an almost sort
of gaslighting relationship emerges
between the the governing class and the
governed so I think they start to um use
it as a kind of a they weaponize it
right like as he was pointed out they
could just print it but they make you
pay taxes
to for this illusion but really it's a
kind of submission right like they force
they they they they know everybody knows
it's an
illusion but if you don't pay them you
go to jail for 20 years sort of thing I
mean they're a huge consequences to this
illusion if you don't believe in this
illusion it's a it's a very totalitarian
sort of Illusion that they make you
believe and if you don't believe this
you're going to jail so I think that
that sort of innate um
incentive model the the structure the
consensus model of the Fiat system
creates that sort of uh you know the
relationship between the government and
the people so I think El Salvador
already had you know they were already
on the US dollar so it was easier for
them to jump into Bitcoin and to just
like go totally like not even have to
trust the FED they could just trust
Bitcoin trust the math yeah I think you
know Stacy's making an excellent point
there and you know to contrast the two
answers obviously in in my case when you
asked me this question I went on a wild
digression without any facts or
interesting points uh when Stacy's asked
this question she actually pointed out
that they have their own currency the
Lira and they're printing it and they're
leading to Fiat money chaos I mean that
that's the superior answer so if you're
watching this video you can delete what
I said because what I just said was just
like an aside I just was vacuously
filling airtime for no reason and
thinking to myself well you know 20 more
seconds of this and I'll kick it over to
Stacy and hopefully she'll be able to
answer this question intelligently which
she did I had no idea they had their own
currency I didn't know about the Lira
but God that makes sense doesn't it
doesn't that make
sense I mean to quote Michael sailor
yeah I mean Lira you know imagine if you
just bought the Lira and bought Bitcoin
that makes Hur is uh you know imagine we
bought the Bitcoin you know is a 10,000
or 20,000 Michael in the New World Order
he won't to take over the world
obviously he knows the he works in
Washington DC he knows the lizard people
personally well the other thing I mean
these are these are great points to I I
I I got a Wonder too I have to believe
that why I think it's even more
important for if people are watching
this in other countries around the world
is to create other Bitcoin bubbles
because I feel like if you like there's
a lot ofit bubbles in Guatemala and
Costa Rica and I feel like if those if
those governments tried to do what
Honduras is doing or I think there'd be
way more push back because they already
have some Bitcoin circular economies
functioning within their country to
where they might be like no man you're
not taking this away from us I don't
know it's just a theory on my part but
it it it to me you know again at I was
at the Bitcoin farmers market yesterday
and I was talking to uh some of the
people from Bitcoin City in Berlin and
how what is happening there and how
amazing they just went to you know for
those who aren't aware Berlin El
Salvador is way in the eastern part of
the country it's very sort of remote and
they just went there a bunch of
bitcoiners went there for me Premier
Bitcoin and got some Els salvadorians
and they just started a little circular
economy now and there's now like a
hundred businesses in this in this
little town up in the mountains and I
feel like that's the key to sort
of
overcoming
you know it's you got to plant that seed
somehow you can't just wait for like a
buchel to show up in your country I
think you got to start the the the
circular economies where you live
because I even feel like there's a lot
of just at a at at a adopting Bitcoin
there's a lot of people from Mexico and
there's like circular Bitcoin bubbles in
Mexico and other Latin American
countries and I feel
like it would be harder to impose these
laws I don't know what you guys think of
that well there is one in Honduras it's
Rowan oh okay yeah this a it's their own
they're kind of autonomous it's they
have weird laws there well unique laws
and uh it's an autonomous region but it
is part of Honduras it's ratan which is
a big Bitcoin Community uh one other
thing I will point out it's Salvadoran
not El
Salvadorian sorry Salvadoran it's okay
it's okay um and
thirdly I think it doesn't even matter
what central governments central banks
Central authorities try to do to stop
Bitcoin they can't stop it everything
helps Bitcoin the only thing that they
could do
is you know get on the arc right they
they could start adopting Bitcoin
because they're going have to do it
eventually so president buchali was the
only smart guy in the whole global room
of leaders who figured that out first
right like buy a long shot because it's
now been over two years two and a half
years where he's been on his own as the
singular leader of the head of state who
uh figured it out uh all other heads of
state will have to follow eventually the
US will probably be less because their
fiat currency is you know the strongest
of the Fiat currencies in a way that's a
blessing and a curse it's I think it's a
big curse right now that perfect money
has come around of Bitcoin because it's
going to make them the last to figure it
out yeah it's the difference between
Bottoms Up and top down so typically
Bitcoin is bottoms up it's Grassroots
It's On The Fringe it's the Freaks and
the Geeks and they are the first
adopters and the cyppher punks and then
it becomes the early adopters and then
it becomes more mainstream and it's a
Bottoms Up Revolution with President
belli it's top down and that's what made
his story so remarkable and unique and
that's why we moved to El Salvador is
that this was a unique story and it was
The Cutting Edge of Bitcoin at the time
it's like a nation state leader has gone
orange pill and so we got to move there
because we got to be part of this
phenomenon and so but he so far is a
one-off nobody else has really figured
it out to the extent that President
pelly has figured it out uh but to
everybody's point that they're making it
doesn't matter because it's the pockets
of Bottoms Up strength all over the
world are growing and they just start to
join up together their own pace and so
we're on the path it's not nothing
that's going to stop this
train yeah and and to to that point I
want to put this uh Max you tweeted this
out about China I want to put this out
there just to to prove your point here
um that uh let me share that this right
here um so this is from a reuter's
article bruised by the stock market
Chinese rush into to Bann Bitcoin the
global Fiat money apocalypse is upon us
the ultimate Safe Haven Bitcoin is going
to 500,000 so this is this is another
example of like I guess the point that
you're both making Stacy of like yeah
Honduras can do past whatever law they
want it's just delaying the inevitable
because China has tried to ban Bitcoin a
bunch of times and it it's not it
doesn't work because their citizens are
just like nope and this article
basically confirms that doesn't
it yeah yeah if they can't stop you in
China and China is you know they have
social credit scores they have absolute
surveillance of the internet and and and
perhaps there probably is in the US also
that we have a total surveillance state
but in China they don't try to hide it
or disguise it they're like we're
freaking watching you we're gonna Crush
you if you do anything wrong in America
they pretend that they're not doing that
and um they they haven't uh turned
hostile or totalitarian openly like
China has um nevertheless they're unable
even with that with the threat of like
ripping your organs out and selling them
on the equivalent of eBay in China like
they're they people are still uh mining
Bitcoin I think they have still
something like 10% of the hash is in
China which is is remarkable considering
that there's such a you know a
consequence to Bitcoin mining there um
so I think uh it's not possible to ban
it and I think the US knows that
because you know a lot of bright people
in in government and in Industry you
know and and Wall Street have studied it
for a very long time and I'm sure we
have a lot of deep experts at you know
the CIA or NSA because they would have
had to study it and they know
cryptography anyway so they would have
had to study it to see like how to stop
it and they probably determined that
it's impossible to stop so if you can't
stop it then if you can't you know first
they fight you right and then they have
to join you yeah it's like one of those
discoveries like Fire or the wheel where
once you discover it there's no
undiscover it and the vector that it's
on is Unstoppable you can't stop fire
you can't stop the wheel and you can't
stop Bitcoin you know it's interesting
Graham that I think it's in 30 countries
where bitcoin's making new all-time
highs
uh just this past week so uh it made
it's doing incredibly well in Japan for
example and Japan is a huge economy and
it's a very conservative economy but you
know Mrs wat tanabi who's the
prototypical Japanese housewife saver
Japan has a very high savings rate it's
typically the highest savings rate in
the world and they love um cash they
dabble in Gold occasionally and they
seem to be now veering into Bitcoin
that's a multi-trillion dollar piece of
change that could be now nibbling at
Bitcoin they're famous for their uh
Forex Trading they love trading
currencies in Japan they were um always
driving markets and they were a big
player in the whole 2008 crash because
there were a lot of Forex ruptures
happening then between the Euro and the
Yen and the dollar and the Yen and the
Icelandic Kona yeah our our our image of
the day trader is a teenager in America
in the basement but actually the biggest
day Traders are Japanese housewives
huddled over their terminals over their
screens and they're are massively
trading these Forex markets uh so we are
led to believe and the market seems to
suggest that so um the adoption curve
amongst these huge pools of capital is
becoming more of prevalent and um so
that's again a huge Catalyst on the
upside so the vector going forward the
path forward is is up and this bull
market that we're in Now is really in
the early Innings to use a not a golf
metaphor this time but a baseball
metaphor also I want to say
that you know this attempt to ban it
several times that China's done or
Honduras is it's really a a newbie error
right and many of us you know everybody
has thought that erroneously that
Bitcoin is a technology that it's a new
technology and what it is is a new money
and money is about Collective
Consciousness and and an idea and you
can't kill ideas basically so even
though it's backed by math and
Technology it's it's not fundamentally a
technology because you know if it were
these 2.2 million other shitcoins that
are trying to compete with Bitcoin on a
technology front a number of
transactions per second and stuff like
that um that's also a a a fatal error
for them right that because they're
competing there's no way to compete
against Bitcoin because it is money and
it's the only one that will ever be
money of the so-called cryptocurrencies
or digital currencies right there's only
one that money and so when these states
try to go at these things at Bitcoin
what they're trying to go at it with is
technology that this is a technology
that we can stop all the other cryptos
are Tech technologies that can be
stopped Bitcoin cannot be stopped
because it's not a technology it's money
yeah there's a great kind of thought ex
thought experiment here you can only
create irreproducibility once yes so
there's a great Bitcoin
philosopher
nson what's the Swedish guyon oh
kutson Swan home can swan home Cano Swan
home okay and he's written a couple of
books and he this is kind of I think
he's the AR the author of this kind of
idea where you can only you can only
create era producibility once you know
and Bitcoin created irreproducibility
when it was hashed you know in 2009
January 3D there's there's it because
it's it's digital irreproducibility you
know and so you'd only have to do that
once and then you you don't need to try
to do it again because and you can't
it's impossible to create something
that's
irreproducible a second time you can
only do that once and that's what
happened and so it's fool hearty to try
to continue to entertain the idea that
you will succeed in doing that because
it's
impossible and the market shows us now
what's that that reality is becoming
more accepted
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