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Michael Saylor & Jeff Booth – Bitcoin Is The Fight Of Our Time | Once BITten Podcast

Check out The Once BITten Podcast Episode Page & Show Notes

Key Takeaways

  • Contrary to the mainstream narrative, deflation is not evil. Goods and services going down in price is natural and desirable to any rational person
    • In a free market, entrepreneurs win only by consistently providing more value, creating deflation, and abundance, “fighting that is robbing humanity” – Jeff Booth
  • You can change bad actors in a system and it will still operate the same way. Bitcoin changes the system and “is the best chance we have today for a peaceful transition” – Jeff Booth
  • “Bitcoin is whatever the hodlers believe it is, Bitcoin is driven by the character and conviction of the hodlers” – Michael Saylor
  • When explaining Bitcoin, “It’s a lot easier to incrementally introduce good ideas than it is to overcome systemic bad ones” – Michael Saylor
  • Bitcoin is where the internet was in 1995, a few understand the potential and are building an entire ecosystem on top
  • Startups that attempt to compete with a monopoly in every aspect always fail. Successful startups achieve a breakthrough in a niche, dominate it, then expand from there
    • A decentralized, non-sovereign store of value is the triumph of a crypto network, not features like privacy and transaction processing
  • Central Banks’ Digital Currencies‘ (CBDC’s) purpose is to allow direct money handouts to people and enable negative interest rates
    • “A digital dollar is no more threatening to Bitcoin than a physical dollar is” – Michael Saylor

Intro

The Inflation Narrative

  • Deflation is when goods and services go down in price; this is natural and desirable to any rational person
    • However, it seems unnatural in the current economic system that requires currencies to constantly lose value
  • Politicians and economists parrot the narrative that a depreciating currency is necessary to stimulate spending and grow an economy
    • “It’s pretty much the stupidest thing you’ve ever heard in your entire life, that prices should always go up” – Michael Saylor
      • Akin to turning down the temperature in a restaurant to make it cold and uncomfortable so customers would hurry up, eat and leave

Bitcoiners are Entrepreneurs

  • An entrepreneur sees something that doesn’t make sense and decides to take a different path and defend their future view of the reality
    • More people come to see Bitcoin as a technological invention and the only path to a fairer world
  •  “Bitcoin is whatever the hodlers believe it is, Bitcoin is driven by the character and conviction of the hodlers” – Michael Saylor
    • Hodlers and maximalists have a multi-decade time horizon and see price crashes as buying opportunities, this signals courage, conviction, and trust
    • Whereas conventional bitcoin investors talk about 1% hedges, hodlers are racing to reserve spots for the $100K price party
      • Which group of people do bet you on and believe in?
  • If you understand why Bitcoin makes sense from first principles, it becomes difficult to understand why other people don’t get it
    • Consequently, some bitcoiners may seem aggressive and push people away
    • Bitcoin is where the internet was in 1995, a few understand the potential and are building an entire ecosystem on top
  • People are caught up in an inflationary monetary system that makes no sense. Instead of “housing always goes up”, contemplate this:
    • “Would housing have gone up in the last 20 years if there wasn’t $185T of stimulus?
      • And “will there be another $300T of stimulus in the next 20 years to keep housing going up?”
  • You can change bad actors in a system and it will still operate the same way. Bitcoin changes the system and “is the best chance we have today for a peaceful transition” – Jeff Booth

The Fight of Our Time

  • The current economic system fails without exponentially growing manipulation of asset prices and money printing, coupled with handouts for people to afford those higher prices
    • This is totalitarian government control where whatever is given to you can be taken away just as easily
  • In contrast, the free market creates increasing innovation through endless ruthless experiments, entrepreneurs win only by consistently providing more value, else they fail
    • “The benefit of that is deflation, so fighting that is robbing humanity”
      • “It’s [Bitcoin] the biggest fight of our time, it’s man kind’s greatest invention” – Jeff Booth

Bitcoin Board Rooms Conversations

  • Entrepreneurs and CEOs have to go down the bitcoin rabbit hole before putting their money on the line
    • To that end, it’s often easier to start with the current system and where it leads before talking about Bitcoin
      • Entrepreneur controlled boardrooms move quicker, and many executives already own bitcoin in a personal capacity
  • “I think it’s a lot easier to incrementally introduce good ideas than it is to overcome systemic bad ones” – Michael Saylor
    • Introduce an incremental virtue that caters to your audience, for instance,
      • To gold bugs, introduce Bitcoin as pharmaceutical grade gold, with none of the impurities, hangover, or liabilities of gold
      • Bitcoin is a better macroeconomic hedge than shorting 30-year bonds, this suits macroeconomists,
      • To big tech investors, Bitcoin is a monetary network you can plug into an iPhone and put on your balance sheet, this generates value for shareholders
        • Anyone of the big tech companies could decide to be the first mover and generate profits
    • Bitcoin’s ecosystem improves the more people join, whether it’s investors, techies, anarchists, corporations, etc.

How Bitcoin Grows

  • Startups that attempt to compete with a monopoly in every aspect always fail
    • Successful startups achieve a breakthrough in a niche, dominate it, then expand from there
      • For instance, Google offered free search when everyone else sold ad-spots on a crowded webpage, competitors didn’t notice till it was too late
    • Bitcoin started as a better store of value than gold and as it grows, more talent and innovation comes into the network
      • Additionally, Bitcoin’s game theory incentivizes governments to accept it, and it eventually becomes a reserve currency
  • “I think Bitcoin is going to be successful with or without any of us, I think it’s already past the event horizon and it’s going to continue” – Michael Saylor
    • That said, a decentralized, non-sovereign store of value is the triumph of a crypto network, not features like privacy and transaction processing.
      • It’s a silly notion to displace the Euro, Yen, Dollar, and circumvent Interpol, FBI, and the Treasury Department, and also defeat Amazon, Google, Microsoft applications, all before becoming a store of value
    • Bitcoin as a store of value saves 95% of the world’s money, and that’s enough

Central Banks Digital Currencies (CBDC)

  • CBDC’s purpose is to allow direct money handouts to people and enable negative interest rates
    • Else, people would just withdraw all their money from the banks
  • As people start to see CBDCs as complete manipulation and concentration of power, Bitcoin becomes the beneficiary
    • People will realize that “For the first time in human history, I don’t have to be manipulated by the state. Because of this innovation [Bitcoin], I personally have vote” – Jeff Booth
  • “A digital dollar is no more threatening to Bitcoin than a physical dollar is” – Michael Saylor
    • Additionally, CBDCs may remain in the planning phase for years to come
      • “I think it’s just another thing, another technology, that is a lot easier to tweet about than it is to do” – Michael Saylor

Additional Notes

  • Technology creates abundance in everything
    • “Everything in the world is free, it’s my time that’s not free” – Jeff Booth
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Notes By Mostafa Khaled

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