Watch These 40 Mins If You Want To Be Financially Free In 6 Months.
Summary
TLDRThe speaker at Freedom Fest in Las Vegas discusses the importance of being a sovereign individual in the face of growing authoritarianism and monetary debasement. They explore the concept of financial sovereignty and the need for a medium of exchange that is not subject to the trust issues inherent in traditional banking and fiat currencies. The presentation advocates for Bitcoin as a solution, highlighting its attributes as a decentralized, borderless, and trustless store of value that could potentially disrupt the current international monetary order.
Takeaways
- 🌍 The speaker emphasizes the importance of being a sovereign individual in the context of growing authoritarianism and monetary debasement worldwide.
- 🏦 There is a noted increase in authoritarian measures globally, including in democratic nations like the United States, with potential threats to individual freedoms and financial sovereignty.
- 💔 The trust in traditional financial systems is eroding due to historical instances of government overreach and seizure of assets, such as the recent freezing of Russian assets.
- 📉 The endless debasement of currency by governments is leading to a decrease in purchasing power, making it harder for individuals to maintain their wealth and financial independence.
- 📈 The speaker suggests that the trend of authoritarianism and debasement is likely to continue, indicating a need for individuals to protect themselves through financial sovereignty.
- 💡 The concept of financial sovereignty is tied to the freedom to transact, which underpins all other freedoms, such as assembly and speech.
- 🔑 The speaker critiques traditional methods of securing assets like gold and cash, highlighting the counterparty risk and the impracticality in the digital age.
- 🔐 The script discusses the evolution of money, from physical collectibles to digital currencies, emphasizing the need for attributes like portability, divisibility, and durability.
- 🚀 The presentation suggests that Bitcoin represents a digital revolution in money, offering a trustless, permissionless, and decentralized system that could be the future of financial sovereignty.
- 🔮 Looking at Bitcoin's potential future value, the speaker considers it as a new store of value that could pull a significant market share from traditional assets like gold, real estate, and stocks.
- 🕰 The script concludes by suggesting that we are still in the early stages of Bitcoin's adoption and that it might be a prudent investment, echoing Satoshi Nakamoto's advice to 'get some in case it catches on.'
Q & A
What is the main theme of the presentation at Freedom Fest?
-The main theme of the presentation is the concept of being a sovereign individual in the context of the growing trends of authoritarianism and monetary debasement, and how to achieve financial sovereignty.
What does the speaker mean by 'sovereign individual'?
-A 'sovereign individual' is someone who has the ability to direct their life as they see fit, without being coerced or controlled by others, making their own choices rather than having someone else's choices imposed upon them.
What are the two growing trends mentioned in the world today that threaten freedom?
-The two growing trends mentioned are the rapid increase of authoritarianism across the world and the endless debasement of currency by governments, which undermines the value of money and the ability to preserve wealth.
Why is the rate of debasement a concern for individuals?
-The rate of debasement is a concern because it erodes the purchasing power of money, meaning that even if one's income or savings increase, their ability to buy goods and services may not improve if the cost of living increases at a faster rate due to inflation.
What is the significance of the year 1971 in the context of this presentation?
-The year 1971 is significant because it marks the year the United States abandoned the gold standard, which the speaker believes led to an acceleration in monetary debasement and inflation.
What is the 'hurdle rate' mentioned in the script, and why is it important?
-The 'hurdle rate' is the minimum rate of return that an investment must earn to cover the cost of the capital used to finance that investment. It's important because it represents the real benchmark for evaluating the performance of an investment, taking into account the debasement of currency.
What is the connection between financial sovereignty and the freedom to transact?
-Financial sovereignty is intrinsically linked to the freedom to transact because without the ability to freely exchange goods, services, and ideas, other freedoms such as speech and assembly become meaningless or difficult to exercise.
Why does the speaker argue that having physical assets like gold and cash might not be enough for true financial sovereignty?
-The speaker argues that physical assets like gold and cash still carry counterparty risk and may not be portable or easily accessible in all situations, which can limit one's financial sovereignty.
What is the 'trust bug' mentioned in the script, and how does it relate to the current financial system?
-The 'trust bug' refers to the inherent trust issues in the financial system that arise from the use of ledgers and debt instruments instead of physical assets like gold. This trust is fragile and has been repeatedly broken, leading to a loss of confidence in the system.
What are the key attributes that the speaker believes a good form of money should have?
-According to the speaker, a good form of money should be durable, portable, divisible, have intrinsic value, be fungible, scarce, and easily salable.
What is the potential future of the international monetary order according to the speaker?
-The speaker suggests that the international monetary order may be moving towards an end, with the potential for a shift away from fiat currencies to commodity-backed currencies or a new form of digital currency that is decentralized, trustless, and borderless.
Outlines
🗣️ Freedom and Sovereignty at the Heart of the Presentation
The speaker addresses the audience at Freedom Fest, emphasizing the importance of the event's theme and the concept of being a sovereign individual. They introduce the idea of personal sovereignty as the ability to direct one's life without coercion, using the example of being told what to do, such as taking a vaccine or losing a job. The speaker also highlights the two growing global trends of authoritarianism and currency debasement, suggesting that these issues are interconnected and will continue, impacting individual freedoms and financial stability.
📊 The Rising Tide of Authoritarianism and Currency Debasement
This paragraph delves into the concerning trends of increasing authoritarianism worldwide and the continuous debasement of currency, particularly in the United States. The speaker presents data showing a decline in democracy and an increase in partly free or not free living conditions globally. They discuss the technical definition of hyperinflation and the impact of currency debasement on the value of money, using the example of the hurdle rate for businesses and the diminishing purchasing power of savings.
🏦 Financial Sovereignty and the Illusion of Asset Control
The speaker discusses the concept of financial sovereignty and the importance of the freedom to transact. They critique common advice for achieving financial sovereignty, such as buying a safe, keeping physical cash, and investing in gold and silver, by pointing out the inherent counterparty risks in all assets. The paragraph highlights the shift from physical stock certificates to a debt-based system where assets are technically owed to individuals rather than being in their possession, leading to potential risks and lack of control.
💰 The Evolution of Money and the Attributes of a Good Currency
In this paragraph, the speaker explores the evolution of money from collectibles to a medium of exchange and a unit of account. They discuss the attributes that make something a good form of money, such as durability, portability, divisibility, and intrinsic value. The speaker contrasts the historical use of gold as a form of money with the challenges it faces in the information age, particularly its lack of portability and the trust issues associated with ledger systems.
📚 The Ledger's Impact on Trust and the Fragility of Financial Systems
The speaker explains how the introduction of the ledger in 1500 revolutionized trade by allowing for the tracking of assets like gold without physical movement, thus increasing the velocity of money. However, this advancement introduced a trust bug, as it created debt on top of assets and relied on the fragile concept of trust. The paragraph provides historical examples of trust being broken, such as the suspension of gold convertibility in England and the 1933 U.S. gold seizure, illustrating the recurring theme of trust betrayal in financial systems.
🌐 The International Monetary Order and the Shift Towards Commodity Money
This paragraph discusses the current state of the international monetary system, highlighting the move by nations like Saudi Arabia and China towards commodity money due to the loss of trust in fiat currencies. The speaker explains the historical context of the Bretton Woods agreement and the subsequent move to a purely fiat system in 1971. They predict a shift back to commodity money, as evidenced by central banks becoming net buyers of gold and sellers of treasuries, signaling a lack of trust in the current monetary system.
🔄 The Incompatibility of Gold Standard with Modern Transaction Needs
The speaker argues against a return to the gold standard, pointing out that gold's lack of portability makes it incompatible with the fast-paced transactions of the information age. They explain the mechanics of how a gold standard would work, using current gold reserves and money supply to calculate a new gold price that would be significantly higher than the market rate. The paragraph emphasizes the need for a medium of exchange that can keep up with the velocity of modern commerce.
🌐 The Need for a Borderless, Trustless, and Decentralized Currency
The speaker identifies the need for a currency that is borderless, trustless, and decentralized, in response to the problems of inflation, lack of transparency, and the permission-based system of traditional banking. They highlight the challenges of global trade and the exclusion of billions of unbanked adults due to the current system's requirements. The paragraph advocates for a digital revolution in currency, one that is accessible, transparent, and free from centralized control.
🚀 Bitcoin's Potential and the Future of Value Storage
In the final paragraph, the speaker discusses Bitcoin's potential as a new store of value that could disrupt traditional forms of value storage like gold, real estate, and stocks. They use a venture capitalist's perspective to estimate the potential market share Bitcoin could capture from these assets. The speaker also addresses the concern of being too late to invest in Bitcoin, suggesting that the technology is still in its early stages of adoption and has significant growth potential.
💡 Satoshi Nakamoto's Vision and the Catching On of Bitcoin
The speaker concludes with a quote from Bitcoin's creator, Satoshi Nakamoto, encouraging the audience to consider getting involved with Bitcoin in case it becomes widely adopted. This final note serves as a reminder of the potential impact Bitcoin could have and the importance of being open to new technologies that may redefine value storage and transaction methods.
Mindmap
Keywords
💡Sovereign Individual
💡Authoritarianism
💡Monetary Debasement
💡Hurdle Rate
💡Financial Sovereignty
💡Collectibles
💡Counterparty Risk
💡Velocity of Money
💡Fiat Currency
💡Debasement
💡Digital Revolution
Highlights
The importance of being a sovereign individual in the context of the Freedom Fest discussion.
The concept of sovereignty as the ability to direct one's life without coercion.
Two growing global trends: the rise of authoritarianism and the endless debasement of currency.
The technical definition of hyperinflation and its relevance to the current economic climate.
The impact of monetary debasement on personal wealth and the concept of a 'hurdle rate'.
Global data on democratic decline and its correlation with authoritarianism.
The acceleration of debt accumulation in the U.S. and its comparison to the gold standard era.
The idea of financial sovereignty as a prerequisite for all other freedoms.
The limitations of traditional assets like gold and real estate in terms of portability and counterparty risk.
The evolution of money from physical collectibles to a medium of exchange and a unit of account.
The attributes required for an effective medium of exchange in the information age.
The historical shift from physical money to ledger-based accounting and its implications.
The trust issues inherent in ledger-based financial systems and the potential for a 'trust bug'.
The potential for a new financial system that is trustless, permissionless, and decentralized.
The role of Bitcoin as a potential solution to the problems of trust and centralization in finance.
The future value potential of Bitcoin and its competition with traditional stores of value.
The message from Bitcoin's creator, Satoshi Nakamoto, encouraging early adoption.
Transcripts
I gave this as a a presentation to a
live audience at the freedom Fest in Las
Vegas but you get to watch it without
having to buy a ticket without having to
travel so let's go all right let's get
this thing warmed up thanks for coming
in appreciate it everybody coming I
appreciate everyone coming to the event
first of all Freedom Fest it's pretty
important topic I would ask if you guys
like freedom but of course you do we're
all here so uh appreciate you guys
coming it's my third year I've been at
Freedom Fest and uh again it's such an
important topic I love coming appreciate
all of you taking the time and uh
wandering into this little room over
here to hear me talk I'm going to talk
about something today that I think
should be super important to each one of
you here at the freedom Fest and that is
being a sovereign
individual and I was going to talk about
uh the end of the international monetary
order don't worry we're going to still
going to bring that in there but I want
to talk about being a true sovereign
individual and the way that I think
about sovereignty is being able to
direct my life
as I see
fit how many like being told what to do
when that's not what you want to do you
know when you're coerced like you know
take the jab or quit your job right
where either one of those choices leads
to somebody else's end so for me being
Sovereign is being able to not be not
have freedom of choice that are someone
else's choices but my own choices and so
I want to talk about how we can do that
today and actually what I'm calling the
final piece to that so I think it's a
pretty big topic should be pretty fun
now there's two growing trends that we
have in the world today and I'm guessing
each one of you see them because you're
here at the freedom Fest and the two
Trends are one unfortunately an alarming
and a rapid rate of increase of
authoritarianism all across the
world it's a trend and it's trending the
wrong way we're seeing this in Nations
all over the world and even here in the
United States the land of the free um a
democratically uh State supposedly I
know a republic but uh in this
Democratic state where you're supposed
to be able to vote for your leaders your
representatives to rise to power and
here we might see an installed person
taking Biden's place and become like
more of a dictator they're preaching to
save democracy at the same time
subverting it and this is in the land of
the free of course across the world
we're seeing authoritarian
authoritarianism rise faster and faster
and faster and that's a problem on the
other end of that we have another
driving force a growing Trend and that's
this endless debasement and the problem
is that no matter how fast you can make
money no matter how much value you're
providing to the world you're working
against the tide and the tide is that
governments want to continue to print
more money to fund any number of
programs that they have and of course
again back to the land of the free we're
at the same rate in other countries
Argentina Venezuela Lebanon Peru turkey
Etc you see it happening at a very rapid
rate the the technical definition of
hyperinflation would be 50% increase
month over month or 50% inflation month
over month inflating against
what the dollar inflating its gold and
so we're seeing this endless debasement
but even here in the United States I
mean Argentina Venezuela sure triple
digit inflation but even in the United
States over the last four years the
monetary
debasement has been 10% since
2019 and what does that mean for you
well that's what we call a hurdle rate
so a hurdle rate is if you have a
business you want to borrow money for
your business let's say at 8% the hurdle
rate is now 8% I have to make more than
8% to offset the interest I have to pay
on the debt and so what each one of you
or most people are thinking about is
inflation CPI oh it's 3.3 3.5% no no no
the hurdle rate is the rate of
debasement and so if it's at averaging
10% you need to be making more than that
and so we have these two issues and
again this is even a Land of the Free
it's not so bad now the question I would
ask you is
do you think
authoritarianism and debasement continue
is that a trend that will continue or
does that magically go away it probably
continues so let's talk about how we can
protect oursel from those two Tides now
there's been a numerous studies that
have been done I have a couple charts
here on the screen and we can see uh 16
years of democratic decline right this
is globally we can see this and this is
of course at the time when the United
States is exporting democracy to the
rest of the world world but yet it
continues to be in Decline so it's not
just a feeling that we have it's
actually happening we can measure it we
can gauge it here we can see that eight
out of 10 people are now living in a
partly free or a not free
world we can see the data is showing
this exactly this right here partly free
I'm not even sure what that means we're
we're either free or we're not but yet
this is the world that we're living in
and so we can see that the debasement is
continuing at a rapid rate as a matter
of fact the trillion dollar conundrum
since the founding of the United States
it took until the
1980s before the US government had
racked up $1 trillion in
debt from inception until 1980 currently
this slide is actually a little out of
date here currently we're adding about
$1 trillion of debt to the US government
every 90 days every quarter and even
that is understated the goal so every
single time the government puts out the
treasury puts out what their funding
requirements are for the year they
revise them later and it's going faster
and faster and faster and I put here
does this see if this laser pointer
works I put these red lines here just so
you can see the trend so right here is
this vertical red line that's 1971
anybody know what year that was the
significance of that right that's the
year we got off the gold standard and so
you can see that this red trend line was
tracking pretty horizontal right here
but right around 1970 you can see this
trend line started taking off and so you
can see the rate of debasement is
accelerating right it's going faster and
faster and faster right here around
2,000 the Doom crash it took a whole
another turn up right here 2008 it took
another turn up here 2020 it's taking
another turn up and we're almost going
straight up how much faster could this
rated of De basement be and again this
is in America this is where it's not
even that bad and this is a global
situation that we're dealing with we can
see that the whole world is dealing with
this situation at the exact same time
and a lot of people get caught off sides
by this because they look at the United
States look at the Federal Reserve of
course we have the dollar system and so
they say well the FED is tightening the
monetary Supply they're trying to slow
down inflation but the rest of the world
is not so we have to be paying attention
we can see right here the world's major
central banks we don't have to pay
attention to all 160 of them but at
least the major central banks which
would be the ECB European Central Bank
the boj the bank of Japan the pboc China
central bank and of course the Federal
Reserve and we can see that they're all
rapidly debasing the currency as fast as
they can and look nothing ever goes up
or down in a straight line so we can see
that they zigzagged here but we can see
the direction and the trend that we're
on so this is a major problem for us
it's the reason why even though you look
at your retirement accounts and you look
at your 401k you look at your mutual
funds and the valuation went way up but
you don't feel more
Rich it's why on paper you should be
more wealthy but you don't feel it and
it's because this rapid rate of
debasement is contining stealing the
power the purchasing power from those
currency units in your bank account even
though the money is still there it just
doesn't get you as much as it used to
now again bringing this back to home
here we are at the freedom Fest and
we're talking about sovereignty but I
want to talk about spe specifically
Financial sovereignty and the reason why
we bring it back to financial
sovereignty um I was speaking to
Congressman Tom Massie yesterday and he
asked me hey Mark just tell me one
reason why people should care about
Bitcoin and this is something I would
typically hear someone says uh explain
Bitcoin to me like I'm 5 years old and
in two minutes and I'm like I I can't
like a 5-year-old just won't get it but
he said boil it down to one statement
and I said the reason why Financial
sovereignty the reason why is because
all Freedom sits at the ability to
transact the freedom to transact if we
don't have freedom to transact then we
have no other freedoms let me give you
an example in the United States we have
this wonderful document called the
Constitution it's being disregarded but
hopefully we'll get that restored at
some point but we have this Constitution
that guarantees our freedoms for example
freedom of
assembly however if I don't have the
freedom to transact how do I put gas in
my truck to drive to the assembly how do
I pay for a hotel room when I get to the
assembly how do I get food when I go to
the assembly and so if I can't transact
I can't go assemble we have guaranteed
the freedom of speech but in today's day
and age of the information age if I
can't pay to get a computer to get on
the Internet or a phone how do I have
any speech and so at the underpinning of
all Freedom comes the ability to
transact which of course they understand
that which is why they want to take that
away now um there's a newspaper or a a a
website and a newsletter called
Sovereign man and I pulled this off of
their website Sovereign man and these
are some steps that they would recommend
for each one of you to become a little
bit more Sovereign to get more freedom
in your life and you walk around this
show floor out here there's no shortage
of people out here offering you types of
solutions for this as well a lot of gold
dealers are out here and these are some
of the steps that we'd see directly off
of The Sovereign man this is a shift
Sovereign and so they said hey number
one we should go online and you should
buy a
safe okay why would I want to have a
safe well that way I could have assets
in my control that I could keep them at
my location in my custody and I could
try to keep them safe cool I should get
some physical
cash and I should probably put that
physical cash in the safe and then I
should buy some gold and silver
coins that's how we get more freedom
right now with three steps and the and
the thought process behind this is that
well if I have custody if I have control
of these assets then nobody else does
that would be what we call counterparty
risk if I leave my cash in the banks
then my money could be at risk in the
banks if I leave my gold in a safety
deposit box that gold could be at risk
but if we if we take a step back and
think what is it that we're really
trying to do
here what is it that we're really trying
to do well as I said right we're trying
to take custody we're trying to remove
that counterparty risk well we have to
understand that all of our assets
actually have this all of our assets
actually have counterparty risk so what
am I talking about well we can see this
across so let's just start on the right
Financial assets there was a world maybe
some of you remember this world where
like stock certificates actually used to
be physical certificates and you
actually used to have that physical
certificate today you're not allowed to
own stocks anymore do you guys know that
you think you own stocks you might have
Tesla Apple Google in your account but
technically you don't own that legally
that stock is owed to you it's a big
deal it's a big difference anybody heard
of that book The Great taking I've asked
about that recently nobody here it's
pretty interesting at this conversation
usually this conference people ask me
about that but in the great taking he he
basically breaks this process down but
we don't have this instrument the stock
certificate anymore now it's owed to me
we're in a debt-based system a
debt-based economy and so if that broker
doesn't want to give me that stock I
don't get it the same as the money in
the bank the money in your bank is no
longer your money in the bank that money
in the bank is now owed to you and again
usually it's not that big of a deal but
legally it is if something were to
happen to that bank and it's also a
problem when that bank doesn't want to
allow you to even access your own
money I gave a talk in another room
yesterday so I won't go back through the
whole process some of you are here but
currently I'm in the process of raising
money we have a publicly traded company
we're launching it's licensed it's
regulated it's launching on the Toronto
Stock Exchange and we're raising money
and one of the one of our investors in
the company is banking with Fidelity and
he's trying to wire money from his
Fidelity account into our company into a
regulated public ID entity and Fidelity
told him
no they said well we don't know what
this money is for can you give us him
any information he pulled up a website
well we don't see what this is really
for okay we need to understand who these
people are how do you know them he went
through this whole process multiple um
levels of authorization and he said
finally look hey I need to get this
through the deadline's coming and they
said we don't see it's going to be
possible for us to send that money for
you his own money in his own bank and it
happens every day people get their bank
accounts shut down my Dr Joe Marcola
probably a lot of you know who he is not
only were his bank accounts shut down
the people that worked for him his bank
accounts were shut down and even their
family members bank's accounts were shut
down so we see that happens all the time
uh real estate same thing counterparty
risk of course you own your house
hypothetically just don't stop paying
your property taxes we can see what
happens with that as well as a house
isn't really very portable and then of
course gold now for the most part we can
have a few ounces of gold in our home
safe any more than that it's probably
going to need to go into a Vault
somewhere and that's a big problem
because once I put that gold in a vault
again it's no longer in my custody and
I've now introduced counterparty risk
now I kind of set the stage to
understand where we're at in this
society today where we are under this
threat of authoritarianism that want to
tell us what to do and we have this
rapid debasement some solutions would
tell me that I should get a safe I
should get some cash I get some gold and
I should hold it but the problem is if
we step back and go what is the actual
problem we're trying to solve we might
see there's another solution so what I
want to do is just run quickly through
here what is even money and a lot of
people think they understand what money
is because we all use it we all depend
on it and everything that we do have in
our society is denominated in dollars
it's in money but if we think about
money specifically I like to say that
nobody wants
money I said this at lunch just now
earlier and they said what do you mean
nobody wants money we don't want money
we want the things that money buys us we
want the goods and services that money
buys us we don't want the money itself
it's just a placeholder until we're
ready to deploy
that and if we understand that then we
can understand that it's sort of a
medium of exchange it communicates value
it's a way that I can trade that money
that good for something that I want and
when we understand that we can see that
throughout thousands of years of History
we've had all different types of money
and money is a natural and emergent
process and so we've had rocks we've had
feathers we've had seashells and of
course we've settled on gold and gold
has been that form of money for now
5,000 years what we can see is that it's
this emergent it's this evolutionary
process and so it sort of looks like
this it starts down here at the bottom
as a as a as a
collectible oh look at this rock this is
a pretty rare rock this is pretty cool
maybe I'll collect it look at this
feather it's pretty rare look at this um
painting whatever it's a collectible now
if this
collectible is able to make this next
evolutionary step this next emergent
step it could become just the random
rock or a feather and it could become a
store of value and so we see today many
of the rich people billionaires Etc they
store their wealth in Collectibles today
Fine Art watches old cars things like
that and so we see a lot of wealth about
I believe $6 trillion dollar is parked
just in those collectible assets right
now in the world today but here's where
we get to the next step maybe if
sometimes if there's a collectible that
becomes a good enough store of value it
could potentially maybe emerge to the
next final step which is a medium of
exchange and we can start to use that
collectible that store value to exchange
for other goods and
services if it has the right attributes
we're going to come back to this in a
second and then maybe potentially if it
was a medium of exchange it could move
to the final step which would be called
a unit of account right and so this is
how we've seen things and of course the
dollars were based off of a unit of
account of a measure of gold obviously
the pound sterling talked about a pound
of sterling silver um just a month ago
in Russia President Putin had a meeting
the St Petersburg um economic Forum
which is their counter to the world
economic forum and they introduced at
that meeting a month ago that they are
going to launch their own brics currency
we've been talking hearing about it for
years they finally announced it and
they're going to call this new currency
it's going to be called the unit and
that unit will be backed by 40% by a
weight of gold not a dollar amount of
gold but a weight of gold and 60% to a
basket of currencies but again it
becomes a unit of account that's the
that's the U final stage but only if it
has the right attributes this is another
page that I had taken from uh Peter
Schiff off of his website and this goes
back all the way to I believe Socrates
but in order to have a good money that
becomes a medium exchange it has to have
the right attributes otherwise it stays
a collectible it never makes the mer the
emergent step which would be it needs to
be durable portable divisible it needs
to have intrinsic value fungible
scarcity salability Etc so for example
it needs to be durable bananas would be
a horrible form of money they go bad in
about seven days on your countertop they
need to be
portable they need to be divisible so
like a Mona Lisa works as a store of
value it's gone up in value but it's not
a good me of exchange because I can't
divide that monol Lisa down it needs to
be
um fungible one unit has to be worth one
unit if I cut up a cow maybe the ribeye
is worth more than the
liver right so it needs to be all of
these things in order to actually be
good
money and the problem is that most
things don't make money because the
world has changed if some of you maybe
haven't realized that we've gone from
what was known as the Industrial Age
into now what's known as the information
Age and what we used for money for 5,000
years which has been gold gold is
natural money fat is fake what we used
as money what has emerged as the best
form of money because it met the best
attributes it was the most scarce the
most fungible divisible portable durable
Etc the problem is it's just not very
portable not in the information age
today and the reason why is because
things change and what changed
specifically well
starting in about
1500 the world started to expand at a
pretty rapid rate and it and it expanded
through a rapid rate through something
known as globalization or global trade
you grow the food I'll make the clothes
and we'll just trade and trade started
expanding across the world across the
seas we had the Silk Road before that
Etc but the problem is that again gold
is not very portable so if I want to
trade with somebody in the Far East or
in the Middle East or something like
that how do I pay them well I have to
get a whole bunch of gold which is
really heavy and I have to transport it
across the seas hopefully my ship
doesn't sink and I don't lose all the
gold which of course happens hopefully
the Pirates don't steal all my gold
hopefully I can get the gold across the
continent under hostile territory and I
don't get it taken from me and so it
became a very big problem that we had
now of course problems create Solutions
that's the way the world is supposed to
work we're all supposed to be looking
for problems and finding solutions for
that and so we came up with a problem um
in 1500 lucco Pali there's an image of
him right here came up with a new
technological invention in 1500 and it
was called The Ledger it was The Ledger
and double entry accounting and
basically what that said was hey you
give us the gold and we'll just keep
track of who has what you see in a
physical world like I have this clicker
in my hand right here and everybody can
see this it's physical and if I were to
give the clicker to you then everyone
could see that I've given the clicker
away but in the information age how do
we keep track of that and of course
there was no way before 1500 but with
the Ledger we got the ability to do that
now when we got the ability to do that
it opened up free trade faster now we
didn't have to Lug this heavy gold
around the world because remember gold
is not very portable and what we can see
happened is global trade just started to
take
off so it worked it added what's called
velocity to money right so as
transaction times got faster it became
much easier for me to get the goods and
services that I wanted the transaction
sped up and it allowed money to move
faster the velocity of money picked up
but here's the problem all right now
we're talking about Bitcoin in the
future of the financial system I want to
make sure you secure it properly
millions of Bitcoin have been lost
myself personally has lost a lot of
Bitcoin maybe worth millions of dollars
in today's dollars and so I've learned
the hard way that I want to secure it
with a hardware wallet like this keep
your private key safe this is a treasure
Hardware wallet you plug it in you do
your transaction and you unplug it don't
leave it on Exchange I've lost it that
way don't leave your Bitcoin on a phone
I've lost it that way as well secure it
with a hardware wallet like treaser used
it for over a decade I think it's the
easiest one to use it's Open Source
Hardware so you don't have to worry
about some back door and someone rug
pulling you and taking your Bitcoin
that's why I like the treasure and it's
pretty cheap and if you'd like to save
even more money there's a link in the
description down below that you can save
some money with it but look whether you
use a treasure or not use something
don't leave your Bitcoin on the exchange
or at risk of getting hacked off of your
phone secure with a hard wallet like
this treasure there's a link down below
now let's go back into the video the
velocity problem is that in order to get
gold to move faster in order to add more
velocity to Gold it caused a big
problem and that big problem is what I
call a bug it put a bug into the system
and that's a trust bug you see the thing
with trust is that trust is very fragile
I'm sure you guys understand this if
you've ever had a business partner or
some other partner that maybe was
embezzling from you or stealing from you
or cheating on you you have your
suspicions and then once you find out
something like that happened the trust
is gone and it doesn't just come back it
doesn't come back very easy and so trust
is very fragile but when The Ledger was
introduced to Gold to speed it up it
created the trust problem because now
all the gold went into a bank this
person is keeping The Ledger saying that
well the Gold's going to come from this
guy going to go to this guy but how do
we know that he really moved it from my
account to your account how do we know
that they really have the gold that they
say they have and all of these other
problems that we had and more
importantly what it did is it created
debt on top of the asset so in order to
get the velocity onto the system we had
to introduce debt which means like I
said earlier the gold is now owed to me
I don't actually have
it now we can see that throughout
history every time we've used this bug
the trust bug it turned out to be well
let's just say not good we can see that
trust is very fragile so we can look
back all the way to England right and so
in England sort of where the creation of
the First Central Bank started we can
see that they they created the central
bank to create more paper dollars more
Fiat of course to fight
war and then what they had to do is
because they had printed so many dollars
they didn't have the gold to back that
up so what did they do they suspended
convertibility you could no longer
redeem those dollars for any
gold they printed a whole bunch of Fiat
and then don't worry we'll go back to
Gold we we'll we'll get your trust back
and then we'll suspend the
convertibility again and they went back
and forth and back and forth in the
United States I'm sure most of you guys
know here at Freedom Fest but in 1933
the United States government seized all
the gold so remember gold is heavy gold
is slow Gold's not portable just put it
in the bank don't worry we'll just mark
it on The Ledger and it's it's the same
thing as gold we'll give you these paper
gold certificates that are again debt
instruments IUS claims to the gold that
you have in the bank and that worked out
pretty well that allowed for the US
economy to flourish but the problem was
again we trusted the government we
trusted the banks and they printed way
too many of the paper claims didn't
match up with the gold in the bank the
problem is they owed the gold so what
did they do well they just took it from
you and they didn't even just take it
from you I wasn't alive at the time most
of us weren't uh they didn't take it
from us but they also made it even
illegal to
own
remember they the authoritarians On The
Rise don't want you to own
anything you can't own your stocks you
can't own your bonds you can't even own
the cash in the
bank it's all owed to you so we saw that
1933 again somehow we contined to trust
the government they contined to print
more paper certificates than they had
gold in the bank in N leading into the
1960s the governments of the world
realized this and said we don't want
these paper certificates anymore we want
the gold they started reclaiming the
gold and then president Richard Nixon
1971 defaulted the United States
defaulted on what they owed we're not
going to give you the gold back but we
give you a bunch of these uh funny money
paper gold certificates
back then we saw I mean we can see it in
China like China supposedly has what
30,000 tons of gold but in audit they
they were found to have a whole bunch of
fake gold tungsten painted gold bars
right and so over and over and over and
over we continue to see how this trust
bug continues to get exposed but yet for
some reason we continue to trust it
probably be because we don't really have
any other option we saw the United
States seized all of Venezuela's gold
actually the UK vaults seized all of
venage way as gold it wasn't in their
own vaults it was in the UK the UK
seized it again it wasn't in their
possession we saw the United States
seized Afghanistan Central bank's money
I think about $7
billion anybody remember the Canadian
truckers that went on during the
pandemic a peaceful protest they just
started freezing all their bank accounts
and then finally what I believe is the
final nail in the coffin if we'll call
it that was the Russia bank accounts got
frozen and just recently they decided to
go ahead and auction them off now if
you're one of three superpowers in the
world with nuclear
weapons and you can't even can keep your
money safe what does that have to say
for any of us or any other Nation for
that matter so every nation on Earth was
basically put on notice well if Russia's
money is not safe none of our money is
safe I think most of us woke up during
the Canadian truckers but the whole
world woke up when the Russia situation
happened and so we realize that trust is
gone so where do we go from here and
this kind of brings it back to the topic
of the of the of the conversation which
is the end of the international monetary
order that we have so where do we go
from here in a world where it depends on
trust but trust has been completely
ruined over and over and over and over
again it's like an abusive relationship
why would we continue to go back and
trust them so where do we go from here
well what we're seeing right now is most
of the world the bricks Nations which
make up more than half of the world's
population are moving to something like
a back to a commodity money so gold was
a commodity right it's a physical
property that came out of the ground and
they're moving back to that so we see
that now Nations like Saudi Arabia are
trading oil outside of the US dollar and
the reason why that's important for us
is because they're no longer putting
their Surplus their savings into Dollars
they're putting it into gold instead
we're seeing China go around and buy
half the lithium mines in the world
they'd rather have the lithium in the
ground than the dollars even GM General
Motors spent $650 million on a lithium
mine they'd rather have the lithium in
the ground than the dollars what does
that tell
you it tells you that they think that
lithium will be more important than
dollars in the future it would cost us
more dollars in the future to buy that
lithium I'd rather have it now we see
it's it's it's part of the reason why we
see the OPEC nations wanting to put less
oil out of the ground they'd rather keep
the oil in the
ground than hold these dollars that are
that are required to have trust on them
and so the world finds themselves at
this inflection point right now for
about 5,000 years for most of recorded
history the world has used commodity
money again feathers rocks seashells and
gold for 5,000 years around
1944 the world got on to what's known as
the Breton Woods agreement and the
Breton Woods agreement is that the
dollar would be back to Gold backed by
gold and then all the other nations of
the world would Peg their currencies to
the dollar all right and so we were
still sort of semi quas iic gold
standard because the dollar was backed
by gold but it was kind of like part
gold part Fiat system that's why I kind
of have that overlapping there so we had
gold bars and we had Fiat 1971 we got
off the gold standard as we talked about
and went onto a purely Fiat standard
right so there's nothing backing it
there's no gold in the back in in the
bank and now we find ourselves at this
inflection
point and the question is where do we go
from here back to the inter end of the
international monetary order we're not
talking about the death of the dollar
we're talking the death of the entire
Fiat monetary system that we're seeing
today now as I just said um last month
the bricks finally announced to come out
with this new currency which is going
back to Gold backed we see what's
happening with these nations as I said
these bricks nations are starting to put
their savings into gold as a matter of
fact for the last 10 years central banks
around the world have been net sellers
of treasuries us treasuries which used
to be the reserve asset and they're net
buyers of gold and so we can see this
trend where trust is lost they don't
want to buy us treasuries those are
going to be taken from them nor do they
want to buy us treasuries because they
know they're going to be debased at the
same time so so I guess we'll just go
back to the way we used to do it and
we'll go back to commodity money I'll
take the gold I'll leave my oil in the
ground I'll buy the minerals right now
while I still
can the problem with that is that that
worked in a world from a 100 years ago
that worked in the in in the Industrial
Age and so it's what I call De
Evolution we're not evolving so while
the world is globalizing while
technology is changing the world that
we're in because trust is lost the
option is we go back to the Dark Ages
the stone not the Dark Ages maybe more
like the stone ages and we have to trade
physical
rocks old school or there could be
another option now before we jump to the
other option let's just talk about how
this works let's just set this up for a
minute so there's a lot of people
talking about going back to a gold
standard like I said Russia is talking
about going back to a gold standard of
course you have lots of people Peter
Schiff talking about going back to a
gold standard so how would this work
let's talk about this for a second so
remember we don't want the money we want
the goods and services that money buys
us and so really it's just a medium of
exchange if we were going to go back to
a gold standard what we would do is we
would look at all the dollars that are
in circulation and we' divide it by all
the gold that's in circulation which
will give us a new dollar price of gold
so before we got off the gold standard
well let's go back to before they well
okay so it's
$35 per ounce of gold so that means that
there were supposed to be only $35 for
every 1 ounce of gold that was in the
bank but now they've printed so many
more dollars so we now have to go okay
here's all the new dollars we have
divided by the gold so we can see in the
US supposedly Fort Knox has about 8,000
tons of gold supposedly we haven't had
it audited um I don't know I'll let you
guys decide if that's true or not it's
about 282 million ounces of gold now if
we take uh the US M2 the US money supply
there's about $ 20
trillion out there in circulation so we
take the2 trillion we divide it by the $
282 million ounces which would give us a
new gold price of about $70,000 an ounce
pretty big jump that's why a lot of
people hold gold waiting for that
eventual day maybe one day uh if we
looked at it globally we can see
globally there's about $87 trillion of
currency in the world and we can see
there's about 6 billion ounces of gold
if we did it globally it's more about
13,000
per ounce of gold still pretty good I
don't know what gold is at today 2,300
bucks an ounce is move it to 13,000
pretty good but I just want you to
understand the mechanics of how that
works real quick but again as I said
it's not going to work and it can't work
because remember all the way back to
Socrates the attributes of money are
portable divisible durable recognizable
salable Etc the key piece being
portable and
unfortunately gold is not very portable
not today not in the information age
remember I talked about transaction
times getting faster faster faster today
I can push a button on Amazon and I
could have something delivered to my
house before the day is over instant
transaction times but yet settlement
still take days if you guys run a
business and run credit cards you know
that it typically takes what 72 hours at
least before those funds show up in your
account and even up to 6 months later
they could be charged back on a credit
card so we have instant transactions but
yet our settlement time
still in the stone
ages so it's incompatible with the world
that we're in at this point so the
reevolution might look like something
different remember as I said earlier
problems are or Solutions are supposed
to come to problems that we have and so
I've set this up we have a lot of
problems with inflation right the
government is debasing at a very rapid
rate inflation and so maybe it might
make sense to have something with a
fixed
Supply with Fiat and gold there's no
transparency does China really have the
gold in the vaults or is it tungsten
bars painted as gold does Fort Knox
really have the 8,000 tons or do they
not and so there's no transparency and
so Bitcoin offers us an open and
transparent base layer that everybody
can see a big thing is that as the world
has continued to globalize and global
trade has continued to take off we've
continued to flourish because of that
global trade but the problem is that if
everybody has their own different money
how does that work and so we might need
something borderless I'm in the process
of building a house down in Mexico right
right now and I've been seeing this
firsthand in Mexico the labor is cheap
but most of the stuff has to be imported
and we're importing stuff from all
around the world some appliances come
from Europe some tiles come from the US
different places and the problem is
trying to figure out what the price will
be in the
future and so the my builders in Mexico
want to price me in pesos but they don't
know what the euro exchange rate will be
or the dollar exchange what will be in
the future even at the gas station
they're speculators so the official
exchange rate is 18 pesos to $1 but at
the gas station they give me
17 because they don't know what the
exchange rate will be in a week by the
time they get those to the bank and
change them in and so everybody's forced
with all these different dollars all to
be controlled in these borders we need
something borderless the big one that
I've been talking about here is this
permission system so in order to use the
Fiat gold system it requires permission
to join and a lot of people don't know
if you haven't left the United States is
there's 1.5 billion people in the world
right now today 1.5 billion I should say
adults not people 1.5 billion adults who
have no access to banking because they
don't have permission to join if you've
open a bank account you know it takes a
paperwork stack about that thick and
they don't have that so for
example they just happen to be born in a
country that has sanctions on them no
bank count for you like the super naazi
on Seinfeld um you know it maybe they
had to flee their country because it got
bombed and they they don't have the
paperwork they need to get a bank
account no bank account for you maybe
they live in a country you know half the
world lives on less than $5 a day maybe
they don't have enough money to pay for
a bank account every single
month no bank account for you so the
world has this permission system so we
might want a system that's
permissionless like with Bitcoin where I
can just download an app right now we
can instantly send and send and receive
money instantly and then ultimately we
have this trust Ledger the bug that I
called it the trust bug that was put in
there and so whether it's back to Fiat
or whether it's back to gold or back to
any commodity for that matter it's
always going to require trust does this
person really have the gold they say
they have and can I trust them to give
it to me you know like those movies like
the drug deal like give me the money no
give me the drugs like how do we work in
a world like that and so it might make
sense that we have a system that's
trustless that we don't have to trust
and then ultimately here at Freedom Fest
we'll talk about centralized control so
all Fiat all gold requires that
centralized system that somebody manages
it and so ultimately in a world where
trust is lost in a world where we can no
longer trust each
other what we need is a decentralized
system that nobody can control you see I
talk about the bricks having their own
currency each one of those own bricks
Nations wants to use their own currency
but none of them trust each other well I
certainly don't want to trust the United
States to hold my money anymore but I
don't really trust Russia or China
either and why would I want to hold
whatever Boulevard whatever currency you
have the Turkish ler that's losing money
very fast and so ultimately we need a
decentralized system that nobody can
control and really that is the digital
Revolution so uh for those of you guys
don't know how Bitcoin works I can
basically remember these like 12 words
in my head right
here and I can get on a computer
anywhere in the world plug those 12
words in and have my entire bank account
my entire balance with me instantly A
system that nobody controls A system
that nobody has access to other than
myself it's a digital Revolution we've
seen everything become demonetized or
Dem materialized I should say books
music movies Etc and the last thing left
we finally have is value now real quick
I'm running out of time I got like two
minutes left let's talk about where it's
going because a lot of people maybe the
most common question I hear is it's too
late it's gone too far um maybe I should
try to find something cheaper and
something like that now there's a whole
bunch of ways we can think about
bitcoin's future value one way that we
do it I run a fund you can see it marked
down here Bitcoin opportunity fund it's
a venture fund and a way a venture
capitalist would invest money is you're
trying to invest into a startup and
imagine how much this company could be
worth in the future and you think about
it in a way of how much value is it
going to pull so if I was going to
invest into Uber how much value will it
pull from taxes or from limos or from
Vans Etc and so if we think about
Bitcoin Bitcoin is a lot of things but
it's not competing against new
technologies what bitcoin's competing
against is value itself which is why I
want to build that up from the beginning
right it's competing against value
itself and so if we think about it
people store their weal store their
value in a lot of things like gold for
example it's about A1 trillion market
cap cars and collectibles I told you
it's about $6 trillion Fine Art 18
trillion a lot of people hold their
wealth in the stock market your 401k
your mutual fund 115 trillion there real
estate obviously you have your house but
a lot of people invest into real estate
as well 330 trillion there bonds 300
trillion that adds up to about $900
trillion of assets that people just used
to store their wealth just their savings
if that makes sense so then we might ask
ourselves from a venture capitalist
perspective how much value do I think
that a new store of value that might be
superior to all of those things might
pull well maybe it gets a little bit
from gold maybe it gets 5% from
Collectibles 5% from art maybe it pulls
15% from the stock market 15% from Real
Estate we're not saying it's going to
take 100% but maybe it pulls a little
bit from each one of those about every
50 years we have a new technology that
changes the world and so we're this is
where we're witnessing Bitcoin takeoff
right here um and ultimately again are
we too late um new technology Cycles
work in these 50-year Cycles like this
and we are right about here right now so
it's just barely getting going right
here about 2023 2024 and it's just
getting going and I I'll leave you with
this slide so the creator of uh Bitcoin
Satoshi Nakamoto he left us a lot of
messages on message boards and he left
this quote right here and he said it
might make sense just to get some
in case it catches
on so I'll leave you with that I ran out
of time so I don't have any questions
but I'll be hanging out if you have any
so thank you
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