Michael-Saylor-Brian-Keating-Bitcoin

Michael Saylor on The Physics of Bitcoin | Into the Impossible Podcast

Check out Into The Impossible Podcast episode page and show notes

Key Takeaways

  • The virtual wave: “You can Zoom anywhere at the speed of light and bend time and space” – Michael Saylor
    • You can, from your living room, have meetings all over the world, record something, and share it across time, or share auto-translations across cultures
  • Money is a technology to store and trade value. The easier something is to produce, the weaker it is as money
  • Bitcoin is a decentralized system running on thousands of nodes, to overtake the Bitcoin network one has to overtake all of its nodes
  • Money is stored energy, it’s the apex of all energies because anything can be converted into money
    • Bitcoin is rapidly growing and capturing the monetary energy of traditional assets
  • Bitcoin is a closed system, similar to mathematics and physics. In such systems, energy cannot be created or destroyed and 2+2=4
    • By contrast, the fiat monetary system leaks monetary energy whenever a banker prints money, akin to sucking out temperature till you freeze
  • The power to print money is the source of all wealth and power discrepancies in our society, Bitcoin fixes the Cantillon effect
  • Educational curriculums should be openly available online with people progressing at their own pace
    • A handful of good teachers captured online can teach the next billion people
  • “Technology Fails Until It Succeeds” – Michael Saylor

Introduction

The Mobile Wave Changed Software

  • The rise of iOS and Android dematerialized software from being constrained to a PC to round the clock coverage of the planet.
    • In the process, software leaped an order of magnitude in users
    • People now live with software (Software to drive a car, book restaurants, and hotels, pay bills, take photos, etc.)
  • In the virtual wave, we will witness the virtualization of entire classes of products and services normally delivered by human beings
    • This will come with profound implications on how you compete and provide value
  • Ponder this, “You can Zoom anywhere at the speed of light and bend time and space” – Michael Saylor
    • You can now, from your living room, have meetings all over the world, record something and share it across time, or share auto-translations across cultures
      • The virtual wave basically means having God-like power

Technologies to Store Value

  • Money is a technology to store and trade value. To that end, humans used various commodities as money (Seashells, glass beads, copper, silver, gold, etc.)
    • However, humans can always produce more of a commodity when its price rises. Thus, the easier the commodity to produce, the weaker it is as money
      • In that sense, if gold’s price increases 10x, miners will have the capital and incentive to develop new mining technologies
      • Moreover, gold can be seized, centralized, shorted, and defaulted on (e.g. Nixon going off the gold standard)
  • “Technology Fails Until It Succeeds” – Michael Saylor
    • Every industry is founded on a breakthrough that utilizes earlier technologies
    • Similarly for Bitcoin, 40 years of developments and attempts preceded the breakthrough
      • Moreover, it took 10 years of endless attacks for bitcoin to mature to its current size, and now the pandemic is accelerating its adoption

Bitcoin Is Next Generation Money

  • Bitcoin is a rapidly growing virtual monetary network, and it’s capturing the monetary energy of traditional assets
    • In the process, virtualizing entire balance sheets of companies and individuals
  • Bitcoin is a decentralized system running on thousands of nodes, to overtake the Bitcoin network one has to overtake all of its nodes
  • Think of bitcoin as virtual gold, it has no mass, can travel at the speed of light, and it’s infinitely smarter
  • Bitcoin network effects are akin to gravitational energy, people resist switching once gravity catches them. Moreover, gravitational pull increases with mass
    • In that sense, a billionaire can’t bring a billion to friends to a social network, but they can bring a billion dollars’ worth of pulling force into Bitcoin
      • Bitcoin is past the event horizon and is getting more powerful

Bitcoin Thermodynamics

  • Money is stored energy, it’s the apex of all energies because you can convert anything into money
    • In that sense, wealth is energy to be channeled how you will is based on your values (e.g. build Amazon, Netflix, found a university, etc.)
  • Bitcoin is a closed system, similar to mathematics and physics. In such systems, energy cannot be created or destroyed and 2+2=4
    • By contrast, the fiat monetary system leaks monetary energy whenever a banker prints money, akin to sucking out temperature till you freeze
      • This manifests at varying degrees from the US to faster rates around the world (Turkey, Venezuela, Lebanon, etc.)
    • Whereas politicians can ignore math, energy, and time, engineers can’t

Bitcoin Denial is Expensive

  • Bitcoin has been growing 200% per year, every year, how long can you afford to stare in denial?
  • Some people worry about regulations against bitcoin. However, put it this way, if an oxygen mask drops on a plane, you put it on.
    • Moreover, the more airplane depressurizes, the more you shouldn’t wait to use it
    • Else, you roll over and die, that’s what politicians expect you to do
  • The problem: everyone will lose their money if they do nothing. The solution: An incorruptible  monetary network that doesn’t dissipate energy
    • Bitcoin is a technology for you to avoid becoming impoverished

Trust Doesn’t Belong in a Monetary System

  • “The root problem with conventional currency is all the trust that’s required to make it work” – Satoshi Nakamoto
    • No regime has ever executed a strong monetary policy in history. Thus, a monetary system that doesn’t rely on trust makes sense
  • While the US dollar is backed by 9 nuclear aircraft carriers, it has lost 98% of its purchasing power over its 50 years of existence
    • The question is what will you, as an individual, choose to use as a money technology?
  • The power to print money is the source of all wealth and power discrepancies in our society
    • Under MMT, it’s ok for a government to print endless money
    • Bitcoin fixes this Cantillon effect

Dematerialization of Education

  • Educational curriculums should be openly available online with people progressing at their own pace
    • A handful of good teachers captured online can teach the next billion people
      • Keep in mind, 99% of what you need to know shouldn’t be copyrighted
    • Put it this way, we won’t tackle advance civilization with undergraduate degrees (e.g. cure cancer, interstellar travel, global warming, etc.)
  • Universities’ business model is to create certification scarcity. However, certifications are becoming less valuable with the market increasing valuing knowledge over certificates
    • Once companies can assess skill and knowledge themselves, certifications will no longer be needed
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Notes By Mostafa Khaled

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