Cynthia Lummis Bitcoin

Cynthia Lummis | Tales from the Crypt: A Bitcoin Podcast

Check out Tales from the Crypt Episode page and Show Notes

Key Takeaways

  • US national debt is approaching $26Tr with no end in sight, this is an unsustainable path
    • By contrast, Bitcoin is scarce, only 21 million coins will ever be mined, this is inherent stability
  • Bitcoin can become an enormous player in the US and global economy, provide stability, inflation-proof investing, and privacy that protects civil liberties
  • Waste gas from industrial operations can power Bitcoin mining, instead of flaring it away
    • This increases efficiency for oil and gas producers, mitigates the environmental effects of flaring gas, and increases the US energy independence
  • We should find more uses for coal and hydrocarbons that prevent carbon build up in the atmosphere, and continue researching better batteries to store power
  • “I am an advocate for adding Bitcoin to investment portfolios, particularly for large retirement pools” – Cynthia Lummis
  • Wyoming has created a legislative framework for crypto exchanges, a game-changer

Intro

Inherent Instability

  • US national debt is approaching $26Tr with no end in sight, this is an unsustainable path
    • One political party wants to tax, the other wants to spend, and both are getting their way
  • The Fed stated goal is a 2% annual inflation rate, a clear debasement of the US Dollar
    • Even more, real inflation is underreported
  • Cynthia decided to enter the Senate race after serving on The Committee for a Responsible Federal Budget
    • “Which sounds like an Oxymoron, and it is” – Cynthia Lummis

Enter Bitcoin

  • Bitcoin is scarce, only 21 million coins will ever be mined, this is inherent stability
    • It’s the standard platform for non-fiat currencies, with the all benefits that fiat currencies lack
  • The millennial generation uses digital platforms for doing everything in their lives, money is no exception
    • By the end of 2029, they will be the largest generation that has ever lived on the face of the Earth
  • It’s time for the US to digitize the Dollar and to embrace Bitcoin and blockchain or it will be left behind
    • That said, only Bitcoin is proven to withstand the test of time in the crypto industry

On China

  • To surrender US supply chain to China is to surrender it to the Chinese communist party
    • Doing so subjugates free enterprise, capitalism, and personal initiatives
  • China is slowly embedding itself into global markets and infrastructure, now in digital currency as well
  • Diversification into non-fiat currency-related assets is a good hedge against global threats

Bitcoin is Free Speech Money

  • De-platforming from social media and crowd-funding websites is a scary prospect for a conservative/ libertarian
    • Whereas Bitcoin is censorship resistant and doesn’t care about your views
      • “A transaction is a transaction, the properties of Bitcoin ownership make it difficult for people to use it in a coercive way” – Cynthia Lummis

Bitcoin and Energy Production

  • Great American Mining uses waste gas to mine Bitcoin, instead of flaring it away
    • This increases efficiency for oil and gas producers and mitigates the environmental effects of flaring gas
    • Additionally, it helps the US become more energy independent and protects from OPEC policies
  • The energy we consume should be carbon neutral regardless of its source
    • “It’s ludicrous to think that you could leave coal as a stranded asset in the ground” – Cynthia Lummis
      • Instead, we should find more uses for coal and hydrocarbons that prevent carbon build up in the atmosphere, and continue researching better batteries to store power
  • Bitcoin is growing as an energy consumer and the price of energy will be a limiting factor for mining Bitcoin
    • Thus, it’s important to have abundant, carbon-neutral energy

Pension Funds

  • Unlike other federal workers, the retirement funds for postal workers can only be invested in bonds
    • They lose value over time. By contrast, think of the potential value by investing in Bitcoin and other assets like stocks
      • “Limiting these pension funds to bonds seems like a prison sentence almost” – Marty Bent
      • “I am an advocate for adding Bitcoin to investment portfolios, particularly for large retirement pools” – Cynthia Lummis

Wyoming

  • Wyoming has created a legislative framework for crypto exchanges, a game-changer
    • For instance, Kraken became the first crypto exchange to apply for a bank charter
    • Additionally, Wyoming Legislature has a select committee on blockchain, financial technology, and digital innovation
  • Wyoming economy was always energy-dependent, being ahead of the game in adopting technologies will be transformational
    • Bitcoin can become an enormous player in the US and global economy, provide stability and inflation-proof investing and privacy that protects civil liberties
      • “It’s one of the few things that’s so new that we can actually take a spin, be innovative, advance free enterprise goals here in the 21st centuries” – Cynthia

Additional Notes

  • Cynthia had very few conversations with Members of Congress about Bitcoin
    • That said, Bitcoin is an important addition to sound fiscal practice and it’s time to acknowledge this
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Notes By Mostafa Khaled

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