Marty Bent

Bitcoin & The Mirage of Central Banking | Marty Bent on Off the Chain with Anthony Pompliano

Check out the Off the Chain Podcast Page

Key Takeaways

  • “Bitcoin is the only coin worth buying” – Marty Bent
  • Finding credible sources of information is a big part of being a sovereign individual
    • Marty filters information by using TweetDeck and Twitter lists to compare competing views and see how things playout vs what people say
  • Be careful about using smart home devices (Nest, Alexa, Ring, etc.) – they increased security risks
    • If something you own has been hacked, assume everything you own is hacked
  • Government structure was established 200 years ago, it’s not suited for today and how fast information moves
    • Instead of the federal government dictating what everybody and jurisdiction should do; Give states more rights, down to city and township level – more localism.
      • Technology enables localism by giving power back to the individual
  • We require people (teacher, fire fighter, manager) to be good at their jobs, but also to be professional investors
  • It is a fundamental misunderstanding of complex systems to think they can be managed by a central authority (Example: A few dozen people thinking they can micro-manage the global economy)
    • Bitcoin provides the opportunity to develop a new financial system in an emergent fashion –A voluntary opt-in system
  • Independent creators are changing the Media Industry
    • Tools that allow people to build content like Substack will drive an explosion of content
    • Citizen socialism – Society rewards being the best voice on something, regardless of your position in society
  • Consider this: For every 1 computer scientist graduate in the US, South Korea graduates 14
    • By comparison: For every lawyer South Korea graduates, US graduates 40
      • “They are a country of wealth creation, we are a country of wealth distribution” – Marty Bent

Books Mentioned

Intro

How Marty got into Bitcoin

  • Marty first came across Bitcoin while studying economics in college and working as an analyst for a futures fund
    • He realized the Federal economic policy made no sense and went down the Bitcoin rabbit hole
  • “Bitcoin is the only coin worth buying” – Marty Bent

The Marty’s Bent Newsletter

  • Marty launched the newsletter during the 2017 crypto market bull run with one goal in mind: making Bitcoin easy and approachable
    • “I had the mentality of wanting to bring a Barstool Sports like voice to Bitcoin because it’s so hard to approach for a lot of people” – Marty Bent
    • TFTC podcast came next and now has weekly interviews and recap with Matt Odell co-hosting
  • Finding credible sources of information is a big part of being a sovereign individual
    • “You have to do the work and create and filter your own news sources to find the signal yourself” – Marty Bent
    • How Marty filters information: He uses TweetDeck and twitter lists to compare competing views and see how things playout vs what people say
  • A big part of success is showing up every day
    • A successful example of showing up every day and creating content is Barstool Sports

Freedom of Speech

  • Silicon Valley tech companies deciding who gets to speak on their platforms doesn’t sit well with Marty (Twitter banning Zero Hedge brings freedom of speech into the spotlight)
  • Money is dictated as free speech in USA, and thus, financial data and privacy should be protected by the constitution
    • “We are erecting the digital panopticon and being cattle herded into it, right now it is just the credit score and Instagram feeding you ads based on what you talk about with your wife”
      • Marty adds – “In a second they can flip the switch and it can be used against you. One second you are getting fed ads, the next you are not being allowed to buy plane tickets because you said something uncouth.”
    • The Solution to this? – Build permission-less, censorship resistant and unstoppable systems like Bitcoin
      • Demanding that privacy be protected – giving up your personal information to be stored in a centralized database repeatedly proves insecure (even the DoD got hacked)
        • “The people enforcing these [AML/KYC] regulations on us can’t even protect their own systems” – Marty Bent

Smart Home Devices are Security Risks

  • Smart home devices (Nest, Alexa, Ring, etc.) increase security risks
    • If something you own has been hacked, assume everything you own is hacked
    • “Humans value convenience over privacy but you have think about you are seeding when you bring these technologies into your home” – Marty Bent
  • You can decide what devices are in your home, but outside you are being surveilled through cameras and apps

The Cost of a Growth at all Costs Economy

  • We live in an economy that chases growth at all costs, Pierre Rochard calls it “a high velocity trash economy”
    • Growth at all costs can be good at certain times like a building a start-up – but not in the case of a debt fuelled economy
  • In an effort to stimulate the economy, Hong Kong government has issued $200Bn stimulus package
    • The package includes $1200 cash giveaway directly to each citizen 
  • In Strong Towns, author Charles Maroon explores the consequences of real estate development under the “growth at all costs” mentality
    • Accumulating infrastructure debt: Neighbourhoods can’t easily scale, they have higher maintenance costs and are easier to decay and drop in value
  • People need to lower their time preference and think about the long run instead of focusing on clickbait news or spending most of their time on social media apps
  • Government structure was established 200 years ago, it’s not suited for today and how fast information moves
    • For instance, the function of a congress rep is to act as a voice for their constituents, but now we have the internet and people speak for themselves immediately
    • Instead of the federal government dictating what everybody and jurisdiction should do; Give states more rights, down to city and township level – more localism.
      • Technology enables localism by giving power back to the individual

Bitcoin Changes us more than we Change Bitcoin

  • Bitcoin puts you in control of your money and financial decisions – this is a huge driver of financial literacy
  • Bitcoin forces people to think ahead and lower their time preference and limit consumerism – it changes your life
  • We require people (teacher, fire fighter, manager) to be good at their jobs, but also to be professional investors – financial incentives push you into having to invest
    • Bitcoin provides a saving technology, so one can be good at their job and save money
      • this changes the relationship people have with their money
    • Having a sound currency where people are able to save their purchasing power overtime instead of having to chase the yield in stock markets via fund managers and pension funds

The Mirage of Central Banking

  • It is a fundamental misunderstanding of complex systems to think they can be managed by a central authority (Example: A few dozen people thinking they can micro-manage the global economy)
    • A complex system emerges from bottom up – individual making personal decision then moving up to community, town, then city level
    • Bitcoin provides the opportunity to develop a new financial system in an emergent fashion –A voluntary opt-in system
    • The world is $247 trillion in debt – to who? We owe it to future generations– it’s the future production that we are promising
      • Bitcoin provides an opt-out way of this madness
  • Marty doesn’t think that the fed stepping in to save the over leveraged hedge funds is going to work this time
  • The trust in the financial system is forever broken after 2008
    • Many leaders in the financial sector have been charged with crimes, but they don’t get punished – “it’s  a 2 tier justice system”
      • “Do you trust these people, or do you trust maths?” – Marty Bent
  • In the Netflix documentary The Pharmacist, Dan Schneider loses his son in a drug-related shooting and decides to bring the killer to justice. It opens his eyes to the role of Big Pharma and corrupt police in the Opioid epidemic

Independent Creators are Changing the Media Industry

  • Traditional large publishers will start publishing blogger style opinionated pieces
  • Tools that allow people to build content like Substack will drive an explosion of content
  • Citizen socialism – Society rewards being the best voice on something, regardless of your position in society; examples
  • Historically, news was viewed as true by default, viewing it as just an opinion completely changes how you consume information

Additional Notes

  • Both Marty and Pomp agree networks should have long form interviews with presidential candidates instead of debates with candidates fighting to grab headlines
  • Marty doesn’t think the Fed stepping in to support the market will work this time
  • Consider this: For every 1 computer scientist graduate in the US, South Korea graduates 14
    • By comparison: For every lawyer South Korea graduates, US graduates 40
      • “They are a country of wealth creation, we are a country of wealth distribution” – Marty Bent
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Notes By Mostafa Khaled

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