In our recent discussion, legendary Bitcoin maximalist Max Keiser laid out a compelling, and at times provocative, vision of a world fundamentally reshaped by Bitcoin. From its "divine" origins to its inevitable role in dismantling traditional financial systems, Keiser paints a picture of societal bifurcation and economic revolution.

Bitcoin: A Divine Intervention and the Sistine Chapel of Money

Max Keiser suggests a profound, almost spiritual, purpose for Bitcoin, stating that "God is unhappy with humans because we're destroying his creation" and "He sent us Bitcoin so this is our last chance". He posits that Bitcoin "turns greed into altruism," converting the human tendency towards self-annihilation (greed) into a force for love, acting as a "trick that God is playing on us," a "Trojan horse".

For Keiser, Bitcoin is not merely a technological innovation but a "masterful engineering job," calling it "the Sistine Chapel of money," possessing "spiritual qualities" that can "inflame your soul to be more of a human".

The Irreversible Bifurcation: Coiners vs. No-Coiners

Keiser asserts that the world is on the cusp of a permanent split, or "bifurcation," into "coiners and no-coiners". This division will set "the template...for the next 500 years". In this new reality, "those with coin or the coiners versus those without coins the no coiners there will be a split in in in the world and society and we won't be looking at the world in terms of nation states anymore".

He starkly contrasts the future for these two groups: if you have no coin, you'll "probably be living in the equivalent of hell," while those with coin "will be living in heaven". Keiser emphasizes the urgency of this moment, describing his communication as "pragmatic" rather than "hyperbolic," urging people to prepare.

The Demise of the State and Central Banks

A core tenet of Keiser's vision is the obliteration of central banks and the disintermediation, or even "killing," of the nation-state. He believes Bitcoin separates money from the state, ushering in a "post state post central bank world". This is exemplified by his work in El Salvador, where his goal is to establish a "node nation" where every Salvadoran household has a Bitcoin node and possesses all the money, leaving the state bankrupt and merely a service provider that does the bidding of the node owners. He predicts that countries without Bitcoin will "disintegrate" and even "go to war with each other" due to their reliance on debt and fiat money printing.

The International Monetary Fund (IMF), a long-standing foe of Keiser, is also squarely in his crosshairs. He feels "very sorry for the IMF because they're a dying institution and they won't be around five five years from now". Keiser believes Bitcoin will "eviscerate the IMF," citing the decline of its Special Drawing Rights (SDRs) against Bitcoin. He notes the irony that while the IMF claims Bitcoin adds instability, figures like Donald Trump (despite his "rookie mistakes" with Bitcoin) suggest it brings stability.

El Salvador: The Guiding Light of Hyperbitcoinization

El Salvador is presented as the leading example of this new paradigm, being the "first country out of the fourth turning" and the "most heavily Bitcoinized country in the world". Keiser highlights that the IMF is "scared shitless" of El Salvador's success because it accelerates their own demise. Key aspects of El Salvador's Bitcoinization include:

• Strategic Bitcoin Reserve: The country's reserve is growing daily and will soon be worth billions, intended as collateral to retire the IMF debt.

• High Adoption: While some might claim otherwise, Keiser states El Salvador has a 15% day-to-day adoption rate, which he considers "quite high" globally. Furthermore, he argues there's "100% adoption" due to the strategic reserve, meaning "everyone in this country has exposure to Bitcoin".

• Bitcoin Companies and Infrastructure: Bitcoin companies are relocating to El Salvador, and infrastructure like new airports and roads are being built to support initiatives like Bitcoin City and Volcano Energy (geothermal Bitcoin mining).

• Leadership: President Nayib Bukele is described as a "genius" who understood Bitcoin even before becoming president.

The Disease of Fiat Money and the Virtue of Savings

Keiser labels fiat money as a "disease" to which people are "addicted," akin to alcoholism or drug addiction. He argues that the fiat system encourages debt and war, as printing money to fund conflict only increases Bitcoin's value. He criticizes the Keynesian myth that lower interest rates stimulate demand, asserting that it only leads to massive global debt, currently at $350 trillion.

Bitcoin, conversely, "restores the savings rate" and fosters optimism, as saving in Bitcoin implies a belief in a brighter future. Keiser reminisces about a time when savings were encouraged, contrasting it with the "neoliberal phase" where savings became "a dirty word". He emphasizes that "you can't have capitalism without capital" and "you can't have capital without savings," which Bitcoin makes possible.

Bitcoin's Unrivaled Superiority and Demonetization

Keiser declares Bitcoin the "ultimate perfect money" that has "usurped gold". He outlines Bitcoin's "demonizing" effect on various traditional assets and markets:

• Gold: People are selling gold to buy Bitcoin, as gold's supply is "elastic" (e.g., asteroid mining, extraction from seawater), unlike Bitcoin's fixed 21 million supply. Bitcoin offers superior portability and verifiable transactions without third parties.

• Real Estate and Fine Art: These markets are also being demonetized as people opt for Bitcoin.

• Bond Market: This is highlighted as the "biggest honeypot" at $200 trillion. Keiser predicts this capital will flow from bonds to Bitcoin, leading to a "100x" increase in Bitcoin's price.

Self-Custody, Dollar-Cost Averaging, and the Future

For individuals, Keiser's advice is clear: "stay agile, get a few passports, self custody your Bitcoin and get your bugout bag ready by the front door". He strongly advocates for "hodling" (holding Bitcoin) and "dollar cost averaging" (buying a fixed amount regularly regardless of price) as the safest and most effective strategies, emphasizing "don't try to time the market, spend time in the market".

While he acknowledges that "Bitcoin treasury companies" like MicroStrategy add demand, he also expresses concern that they are "reuniting Bitcoin with the state and Wall Street," thereby "kind of keeping alive the organism that should already be dead" and "delaying the process". He warns that these companies, if they prioritize their stock price over Bitcoin, could create a "pretty significant pullback" in Bitcoin price by selling their holdings. He dismisses "shitcoins" as "worthless shit" that will "go to zero against Bitcoin," seeing their market days as "over" due to other speculative options.

Ultimately, Keiser envisions a "Bitcoin singularity" where the concept of money itself disappears, leading to a "massive upgrade as humans" into a "post egocentric existence" based on "love" and "spirituality". He predicts that within five years, Bitcoin will be a "$200 trillion dollar asset" with billions of users, becoming ubiquitous. In this future, the term "dollar" will become a "legacy term that refers to nothing," as all value will implicitly be Bitcoin.

Just as a mighty river inevitably carves its path, even if temporarily slowed by obstacles, Keiser sees Bitcoin's trajectory as an unstoppable force, fundamentally reshaping the global financial landscape. The "train is leaving the station," and the choice for humanity is whether to get on board or be left behind.

You can watch the whole podcast on YouTube.

Till next time, Niko

If Satoshi has a party today, it’s most certainly going to be wild.

Just look at the markets, marvel at the turmoil. A couple of weeks after Bitcoin was recognized by the US to be a strategic asset, Trump is crashing stocks. Some are already talking about the “global reset”. Most certainly we see Bitcoin holding strong while the Nasdaq takes a dive.

A special weekend!

Satoshi’s choice of Birthday seems not to be arbitrary; it's a deliberate nod to a pivotal moment in monetary history: April 5, 1933.

That date marks the day President Roosevelt signed Executive Order 6102, effectively banning private gold ownership in the United States. This event, born from the economic turmoil of the Great Depression, underscored the vulnerability of holding assets subject to governmental control. It's a stark reminder of how easily established systems can shift, impacting individual financial freedom.

Satoshi's vision for Bitcoin can be seen as a direct response to this historical precedent. He sought to create a digital asset that mirrored the scarcity and value of gold but transcended its physical limitations. In his own words, he described a "metal as scarce as gold," yet capable of being transmitted over a communication channel.

This concept of "digital gold" is central to understanding Bitcoin. Satoshi recognized the importance of gold's scarcity and sought to replicate it in a digital form, while simultaneously addressing its shortcomings.

Bitcoin, unlike gold, can be:

• Transferred instantly: Across vast distances, without intermediaries.

• Held in total self-custody: Empowering individuals to take complete control of their assets, free from the risk of confiscation.

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Satoshi's invention wasn't just about creating a new form of currency; it was about reclaiming financial sovereignty. By embedding the principles of scarcity and self-custody into Bitcoin's design, he aimed to build a system resistant to the centralized control that had historically led to asset confiscation.

The echoes of 1933 resonate through Bitcoin's code and community, reminding us of the importance of sound money and the enduring quest for financial freedom. When we talk about Bitcoin as digital gold, we are not just using a metaphor. We are acknowledging Satoshi's profound understanding of monetary history and his revolutionary vision for a decentralized financial future.

All the best, Niko

The strategy is simple. There are three serious contenders for the ultimate monetary base:

• U.S. Treasuries (way ahead, the current boss)

• Gold (old-school boss)

• Bitcoin (possibly an option)

Talk of a “Chinese gold-backed currency” is nonsense. The U.S. holds 8,000 tons of gold, the Eurozone 13,000. China and Russia have much less.

Nobody seriously trusts the Renminbi as a real reserve alternative to the Dollar. The Euro was a good idea but executed terribly.

Bitcoin is “digital gold.”

The simplest solution for Washington? Be the first and hold more than China/Russia. That step was taken today.

Since the founding of the Bank of Amsterdam around 400 years ago, there hasn’t been a monetary shift like this.

We all know gold. Now, we’re getting to know Bitcoin.

Didn’t you hear?

Bitcoin doesn’t exist. It’s just points on the internet.

I made a video recently on my German channel where I was ranting a bit about how people like Gary misunderstand Bitcoin.

They lump it in with all the other "crypto" stuff, and that's just plain wrong.

I hear all these arguments, right?

Like from Gary, who says crypto's worthless. He's got this whole thing about how it costs nothing to make, and it's all just marketing hype. He thinks it's a scam where the creators get rich.

And you know what? He's not totally wrong about a lot of cryptos.

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But Bitcoin? Come on, that's a whole different ballgame.

First off, Bitcoin ain't free to make. You gotta burn some serious energy to mine it. That gives it a real, tangible cost that most of those other coins just don't have. Value is a different beast still, it’s subjective - like beauty.

Plus, there's no central marketing team for Bitcoin. The guy who invented it, Satoshi Nakamoto, just vanished. Never cashed in, never tried to pump it up. It grew organically, like a grassroots thing.

Bitcoin's a one-of-a-kind deal. And this is where Gary hasn’t done his homework.

Bitcoin is points on the internet? Ok. But that is massive, isn’t it?

See, Bitcoin is so much ahead of all competitors that it has already established itself as the internet's own points system. A ledger that everyone manages together, and it's created digital scarcity.

That scarcity? That's the magic. It makes Bitcoin a store of value, like digital gold. All those other cryptos? They're mostly just trying to ride Bitcoin's wave.

I honestly think Bitcoin could help fix some of the messed-up stuff in the world. Even inequality. It's a system that's open to everyone, no matter where they are. With its unique characteristics and growing popularity, we’re betting on its long-term success as a way to store value.

Points on the internet. I want some!

All the best, Niko

Gracjan Pietras and Lyudmyla Kozlovska discuss the implications of privacy laws and state intrusion on financial privacy, particularly in the context of Bitcoin and other freedom technologies. They explore the widening regulations affecting self-hosted wallets and the challenges faced by European citizens in protecting their financial privacy. The speakers emphasize the importance of legal actions, lobbying, and building freedom technologies as means to combat these challenges. They also highlight the need for civil society to mobilize and advocate for change, addressing key regulations that threaten financial freedom. The conversation concludes with actionable steps for individuals to take in order to protect their rights and privacy.

Chapters

00:00 Introduction to Bitcoin and Human Rights
03:12 The Role of Open Dialogue Foundation
05:49 Understanding EU Regulations on Bitcoin
09:04 The Impact of the Travel Rule
12:00 Regulatory Intent vs. Human Rights
14:49 Financial Privacy and State Overreach
17:56 Weaponization of Financial Data
21:04 The Dangers of Regulatory Abuse
24:02 Conclusion: The Future of Financial Privacy
31:56 Understanding Privacy Laws and State Intrusion
35:01 The Impact of Regulations on Financial Privacy
37:41 Fighting Back: Legal and Technological Solutions
41:04 Mobilizing for Change: The Role of Civil Society
44:13 Key Regulations to Address for Financial Freedom
48:26 The Importance of Bitcoin in Authoritarian Regimes
52:59 Defending Our Rights: The Need for Vigilance
58:21 Taking Action: Steps to Protect Financial Privacy

In this conversation, Peter discusses the political motivations behind cryptocurrency regulation, the saturation of debt in the global financial system, and how Bitcoin could serve as a solution to these issues. He emphasizes the potential of Bitcoin to create equity and provide equal opportunities for all, while also addressing the implications of an equity-based system on global politics and economics. The discussion highlights the transformative power of Bitcoin in reshaping financial landscapes and empowering individuals worldwide.

• The Bitcoin Adviser (English)

• The Bitcoin Adviser (Deutsch)

Chapters

00:00 Bitcoin's Current Landscape and Investment Opportunities

07:59 The Role of Bitcoin Advisors and Custody Solutions

16:01 Market Dynamics and Future Predictions for Bitcoin

23:56 Regulatory Environment and Institutional Adoption in Australia

28:29 Political Motivations Behind Cryptocurrency Regulation

30:51 Debt Saturation and the Role of Bitcoin

35:16 Bitcoin as a Solution to Global Financial Issues

40:33 The Future of Bitcoin and Global Credit Systems

42:46 Bitcoin: An Equal Opportunity Asset

45:02 Political Implications of an Equity-Based System

Saif got in contact with the association “Bitcoin Austria”, which was founded in 2011 and is one of the oldest organized group of Bitcoiners anywhere in the world. It was them who asked me to be the moderator of the evening.

You can still watch the whole thing here.

I remember two things about this evening. First that my eyes were burning like hell thought the event because the doctor gave me some ointment that day that I had a bad reaction to.

I also remember thinking that Saifedean is completely nuts.

See, I wasn’t having a “Bitcoin phase” back then. The gold bug in me was in control and while many of the attendees tell me to this day that this presentation changed their view of Bitcoin forever and made them firm believers, I went the other way.

I remember Saifedean arguing that Gold couldn’t be a solution to the current monetary mess because the physical stuff has long been centralized by central banks. Again I thought: “Who is this crazy guy and why doesn’t he understand gold?”

Well, he does.

And Bitcoin too.

I was the fool.

And yes, that’s a long way of saying: I could have bought Bitcoin much, much sooner...

Well.

A short while ago I read “Lords of Finance” - a rather brilliant book about the central bankers who “broke the world” in 1929. The book is also about a man that Saifedean doesn’t like very much and certainly doesn’t agree with: John Maynard Keynes.

Keynes famously was a staunch opponent of reinstating the gold standard after WW1. He called it a “barbarous relic”. It’s unlikely that Keynes would have ended up a Bitcoiner if he was alive today as he proposed a “managed currency” back then.

But it seems he understood the problems with the gold standard much better than we give him credit for today.

In the book I found a quote by Keynes that gave one of his reasons for opposing the gold standard - a reason, many Bitcoiners can relate to today.

Here is the quote from Keynes:

“Almost throughout the world, gold has been withdrawn from circulation. It no longer passes from hand to hand, and the touch of the metal has been taken from men’s greedy palms. The little household gods, who dwelt in purses and stockings and tin boxes, have been swallowed by a single golden image in each country, which lives underground and is not seen. Gold is out of sight—gone back into the soil. But when the gods are no longer seen in a yellow panoply walking the earth, we begin to rationalize them; and it is not long before there is nothing left.”

- JM Keynes

Do you see where I’m going with this?

This is basically Keynes prehistoric version of “not your keys, not your coins”, isn’t it?

Today, in 2024, ETFs are amassing Bitcoin. There is talk of a “Strategic Bitcoin Reserve” in the US and other countries. Nation states are getting in!

Of course, this is what many Bitcoiners want and what we should expect to happen - given that Bitcoin seems to be the most important invention in the field of money for hundreds of years.

But imho this quote does serve as a stark reminder that the hardcore Bitcoiners who warn of centralization and giving up your coins to third party custodians have a very good point.

In my last article I wrote about the conflict between Store-of-value-Bitcoiners and Unit-of-exchange-Bitcoiners. But the truth is that both need each other.

Bitcoin needs to be monetized as a store of value first. But it also needs to be used for more than just storing value - or at the very least needs to be used as a truly decentralized store of value - in order to gain relevance and then keep it.

Otherwise it would end up just another tool for speculation and irrelevant on the monetary stage. Or, maybe even worst, a tool to wield centralized state power, like gold is today.

So, let’s listen to Saifedean and all the other Austrians arguing for Bitcoin to save us.

But let’s also listen to Keynes. At least this one time.

Till next time, Niko

Lyn shares her personal journey from gold to Bitcoin, analyses the current market dynamics, and emphasises the importance of understanding the Cantillon effect and wealth disparity in the context of monetary policy. Lyn and Niko discuss the evolving role of Bitcoin and stablecoins in the global financial landscape. They explore the concept of Bitcoin as a store of value, the challenges of currency debasement in emerging markets, and the potential for Bitcoin to serve as a solution for individuals in countries with unstable currencies.

The discussion also touches on the shifting attitudes of central banks and institutions towards Bitcoin, the political implications of Bitcoin adoption, and the long-term impact of Bitcoin on the global economy.

• Lyn on X

• Lyn’s Strategic Investment Letter

• “Broken Money” in German: Amazon, Aprycot Media

That was to be expected of course.

Some Bitcoiners see Bitcoin under constant attack. Why should this seemingly Bitcoin-friendly step by the giants of Wall Street be any different?

We call Bitcoin a Trojan Horse of freedom. But what if Blackrock just inserted a Trojan Horse of control into the Trojan Horse of freedom?

Talk about 5D chess!

My view was always: Things like the ETF are inevitable, so why fight them? If Bitcoin is what we think it is, the new apex asset of humanity, then Wall Street is gonna get in on the action one way or the other.

But now we can see a new storm forming in the “highest” circles of Bitcoin. The giants are fighting for the soul of Bitcoin. The Soulwars have started.

At its center we see an age old question:

What is Bitcoin going to be?

“Just” a store of value: Digital gold forming the base layer of the next version of the financial system?

Or is Bitcoin going to be much, much more? A multilayer structure that can act as a financial system of its own? Could Bitcoin serve as a global currency and foundational framework for a decentralized financial system?

In other words: Are we rebuilding fiat on top of Bitcoin? Or are we building the Bitcoin world as a fully fledged alternative to the fiat central banking of old?

The debate is encapsulated by Jeff Booths recent statement on Natalie Brunell’s show where Jeff said he disagrees with Michael Saylor on this one crucial question.

I think Michael Saylor is wrong on it (Bitcoin) just being a store of value. If he is right, it means that all that happened is that the US went from gold to an oil-backed currency, the petrodollar system, to Bitcoin. And if that’s all it looks like and it doesn’t become a medium of exchange, then the theft will continue. - Jeff Booth

Saylor positions Bitcoin primarily as a store of value, akin to digital gold. He argues that the finite supply of Bitcoin makes it an ideal hedge against (monetary) inflation and a robust treasury asset. According to Saylor, as governments continue to engage in excessive monetary policy and fiscal stimulus, the necessity for corporations and individuals to protect their wealth becomes paramount. Thus, Saylor’s advocacy emphasizes Bitcoin as a reserve asset that can preserve purchasing power over time.

If you want to know more about his view, be sure to check out this chat we had in Prague on the topic of Bitcoin as capital.

It’s crucial to note that both Saylor and Booth are “talking their book” here. Both are literally invested into their view of Bitcoin. Saylor has amassed a large hoard of Bitcoin as a treasury asset for his company Microstrategy. Booth is invested in companies that want to take the Bitcoin technology much further via his fund Ego Death Capital.

This split comes as talk of a “Bitcoin Dollar” and Bitcoin as a strategic reserve asset on nation state level intensifies - not least because of Donald Trumps involvement.

We’re entering uncharted waters here. Are Wall Street and the US state going to use Bitcoin to reinvigorate capitalism, freedom and the pursuit of happiness? Or are the trying to reign in Bitcoin and eliminate a threat to their power?

I think this question will dominate the Bitcoin debate for a long time.

On the one hand Saylor is absolutely right when he says that we can’t have capitalism without functioning capital. From an economic point of view the arrival of perfect money in the form of Bitcoin is a godsend. On the other hand it’s very, very hard to imagine politicians, fiat bankers and government bureaucrats realizing this and embracing Bitcoin as a tool of economic freedom.

This might be why Jeff Booth echoes the time tested cypherpunk view of developing technologies to change the status quo. Of doing things first and asking questions later (or never).

We certainly don’t want to stop the development of the Bitcoin ecosystem just because Blackrock and (possibly) the US government have embraced the “Bitcoin as an asset” narrative.

In an ideal world both happens: Bitcoins official ascent to the apex asset of the financial world AND the rapid development of the decentralized financial system of the future.

But we don’t live in an ideal world. So Bitcoiners are right to tread carefully.

Right now, they own the vast majority of the Bitcoin out there. So they have considerable power in this fight.

There is a quote, I don’t know who it’s from tho:

“Bitcoin is a revolution ensuring success by making the revolutionaries incorruptable.”

I suspect this theory will be put to the test over the next couple of years.

Till next time,

Niko

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Not your keys, not your coins! You need a hardware wallet.

Check out the Bitbox02 - Swiss-made, secure, beautiful, open source, Tor support, Bitcoin only and all-around awesome!

Use code “FIXTHEMONEY” to get 5% off :)

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The Greater Fool Theory is an investment strategy that suggests that an asset's value will continue to rise because a greater fool will be found to buy it at a higher price. This theory is often applied to speculative investments, such as stocks, real estate, or art, where the value is not based on intrinsic worth but on the expectations of future buyers. In essence, it's a belief that there will always be someone else who will pay an even higher price for an asset, regardless of its actual value. This theory often leads to asset bubbles and eventual crashes when the bubble bursts and the greater fool can no longer be found. - Venice AI

Sure, at first glance this applies perfectly to Bitcoin.

That’s why it’s so persuasive to use it as a “good” reason to dismiss Bitcoin.

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Bitcoin doesn’t have “intrinsic value”. It doesn’t pay a cash flow (like stocks, bonds or real estate). Therefore it must be a fools game where one fool sells it to an even foolisher fool at a higher price.

You know, like art.

Or gold.

Or silver.

Or stocks.

Or bonds.

Or real estate.

Nothing has intrinsic value. It just doesn’t exist. Like beauty, value is always in the eye of the beholder. And if you buy any of these asset classes as assets because “Number Go Up”, you’re fooling yourself if you think you’re not also taking part in a greater fool game.

For art it should be obvious. For gold as well, a 16 trillion Dollar market.

Real estate? Yes people live in houses and pay rent. But as long as our money doesn’t serve as a store of value, this “asset class” is heavily distorted. Same goes for stocks and bonds. No-one knows how high the monetary premium in these markets is.

This is of course not an argument against stocks, bonds or houses. I get why people would buy those. But today all of them are heavily bought with the intention of selling them on to a “greater fool”.

The same absolutely goes for gold, art, old cars and rare basketball cards. Anything scarce is turned into a store of value today.

In this world, only the greatest fool would dismiss Bitcoin, an asset purposely built to store wealth in your head.

Especially given the fact that Bitcoin has shown its resilience and appeal over 15 years now and has been acknowledged by mainstream finance, politicians and even nation states.

The longer Bitcoin stays alive, secure and decentralized, the foolisher it is to dismiss it out of hand.

Till next time,

Niko

Krueger also discusses the adoption of Bitcoin as a savings mechanism and its advantages over traditional assets like gold. He concludes that Bitcoin is a digital life form that is growing through human adoption.

Other talking points

• Bitcoin as perfect money and the obstacles it faces.

• The evolving views of Michael Saylor.

• The concept of Bitcoin as a universal measuring stick.

• Real estate investors' perspective on Bitcoin.

• The power law and its implications for Bitcoin's future.

• The role of fear and media narratives in the market.

• The long-term belief in Bitcoin's value.

Chapters

00:00 Introduction and Background
06:38 The Power Law and Bitcoin's Price
09:10 Understanding the Power Law
21:15 Bitcoin's Future Trajectory
25:13 The Speculation and Uncertainty Surrounding Bitcoin
27:27 Bitcoin's Distribution and Adoption
32:06 Bitcoin as a Transactional Currency
33:29 Bitcoin as Perfect Money
35:35 Evolving Views of Michael Saylor
38:14 Bitcoin as a Universal Measuring Stick
39:30 Real Estate Investors and Bitcoin
43:42 The Power Law and Bitcoin's Future
53:03 Fear, Media Narratives, and Market Sentiment
59:41 The Long-Term Belief in Bitcoin's Value

“The best investment idea is something everybody needs, nobody can stop and just about everybody disagrees with you on.” - Michael Saylor

In this fireside chat at BTCPrague, Michael Saylor (Twitter, Website) discusses the paradigm shift for property rights and Bitcoin as capital.

Michael starts by explaining the concept of capital and how it is the economic energy that is stored through work. He compares different capital assets, such as sovereign debt and stocks, and highlights the limitations and risks associated with them. Saylor then introduces Bitcoin as perfect capital, a digital asset that has a hard cap of 21 million and can be stored and transferred without the need for a trusted intermediary.

He discusses the role of regulations and the potential for Bitcoin to be used as capital. Saylor also emphasizes the need for clarity and courage to embrace Bitcoin as a capital asset. He shares examples of companies, like MicroStrategy, that have adopted Bitcoin as part of their capital strategy and have seen significant benefits.

Saylor concludes by highlighting the global paradigm shift towards digital capital and the potential for reinvigorating the capital markets and capitalism as a whole.

Takeaways

• Capital is the economic energy that is stored through work.

• Bitcoin is perfect capital, a digital asset with a hard cap of 21 million.

• Bitcoin can be stored and transferred without the need for a trusted intermediary.

• Embracing Bitcoin as a capital asset requires clarity and courage.

• Companies like MicroStrategy have adopted Bitcoin as part of their capital strategy and have seen significant benefits.

• The global paradigm shift towards digital capital has the potential to reinvigorate the capital markets and capitalism.

Chapters

00:00 Introduction and Defining Capital
03:26 Bitcoin as Perfect Capital
06:49 Regulations and the Potential for Bitcoin as Capital
12:37 Embracing Bitcoin as a Capital Asset
33:10 The Global Paradigm Shift towards Digital Capital

Links

• Watch Michaels presentation in Prague

• Michaels personal website

• Michaels Twitter

"Bitcoin is a scaling variant system. It grows in a proportional and efficient manner, finding the least resistance path." - Giovanni Santostasi

This conversation with Giovanni Santostasi (Website, Twitter) explores the concept of the power law and its significance for Bitcoin. The power law is a mathematical formula that describes the relationship between price and time in Bitcoin. It shows that the price of Bitcoin follows a regular pattern over time, with distinct cycles of growth and decline.

The power law is a universal phenomenon found in nature and human activity, and Bitcoin is no exception. The conversation also discusses the predictability of lows and highs in Bitcoin's price and addresses skepticism about the power law. Bitcoin's price behavior follows a power law, which is a mathematical relationship between different variables.

The power law in Bitcoin is a combination of two other power laws: the growth of addresses (a proxy for Bitcoin adoption) and the hash rate (a measure of computational power). Bitcoin's power law behavior is a result of feedback loops and scaling variance, which allow the system to efficiently grow and adapt. Based on the power law, it is estimated that Bitcoin's price could reach $1 million in 10 years and $4 million in 15 years. The prediction of future price movements is based on the understanding of power laws and the historical behavior of Bitcoin.

Takeaways

• The power law is a mathematical formula that describes the relationship between price and time in Bitcoin.

• Bitcoin follows a regular pattern over time, with distinct cycles of growth and decline.

• The power law is a universal phenomenon found in nature and human activity.

• The predictability of Bitcoin's price is higher for lows than for highs.

• Skepticism about the power law in Bitcoin can be addressed by understanding its scientific basis. Bitcoin's price behavior follows a power law, which is a mathematical relationship between different variables.

• The power law in Bitcoin is a combination of the growth of addresses (a proxy for adoption) and the hash rate (a measure of computational power).

• Bitcoin's power law behavior is a result of feedback loops and scaling variance, allowing the system to efficiently grow and adapt.

• Based on the power law, it is estimated that Bitcoin's price could reach $1 million in 10 years and $4 million in 15 years.

• The prediction of future price movements is based on the understanding of power laws and the historical behavior of Bitcoin.

Chapters

• 00:00 Introduction and Overview

• 02:22 The Power Law Equation and its Significance

• 09:37 The Power Law Chart and its Uniqueness

• 11:42 The Logarithmic Transformation and Straightening the Chart

• 15:38 Predictability of Lows and Highs in Bitcoin's Price

• 23:24 Addressing Skepticism about the Power Law in Bitcoin

• 25:28 Scientific Basis and Further Research

• 29:27 Power Laws and Bitcoin's Price Behavior

• 31:27 Scaling Variance and Bitcoin's Growth

• 35:46 Predicting Bitcoin's Future Price

• 41:55 The Timing of Bull Markets

It wasn’t the shiny new thing that fascinated journalists any more - it became the dirty thing that repelled them. The era of FUD started.

Well, now it’s coming to an end.

On the heels of Blackrock etc. the media is changing its tune once again (suprise!!). And finally we get curios, serious and real reporting.

It might feel a little boring - but that’s what we should want IMO.

Boring, fact based Bitcoin stories.

Watch this PBS Video on the Bitcoin investment done by the Wisconsin state pension fund - one of the first big Bitcoin plays by traditional institutional investors.

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I will be hosting a fireside chat with gigachad Michael Saylor and do a keynote presentation on the lessions Bitcoiners can learn from the rebels of 1989.

Looking forward to see you all in Prague!

Join us and use code WASBITCOINBRINGT to get 10% off!

Summary

My conversation with Matyas Kuchar covers the upcoming Bitcoin Prague conference, the significance of Bitcoin in Europe, the VIP stage, side events, and the global impact of Bitcoin. It also delves into the importance of personal connections and the role of Bitcoin in uniting people across different continents.

Takeaways

• Bitcoin Prague conference is a significant event with a focus on Bitcoin and its impact on Europe.

• The VIP stage offers a curated environment for business networking and in-depth discussions with speakers.

• Side events and parties at the conference venue provide opportunities for networking and informal discussions.

• Bitcoin plays a crucial role in uniting people across different continents and fostering lasting connections.

• The conversation highlights the importance of personal connections and face-to-face interactions in the Bitcoin community.

Chapters

• 00:00 Bitcoin Prague: An Overview and Expectations

• 03:19 The VIP Stage: Networking and In-Depth Discussions

• 06:13 Side Events and Networking Opportunities

• 10:23 Bitcoin's Impact on Europe and Unifying Force

• 15:46 The Global Impact of Bitcoin and Uniting People

Full Transcript

Niko (00:00.843)

Welcome back everyone, welcome back to the Fix The Money podcast. I'm restarting my English channel with a new and fresh mission. I'll write about that soon, but today we'll talk about Prague and we'll talk about me meeting Michael Saylor there, interviewing him there. This will be interesting at the VIP stage and with me today is Matthias who is behind it all. Hi, Matthias.

Matyas (00:22.798)

Hello everyone, hello and thanks Nico for being a part of this great mission.

Niko (00:28.491)

Well, thank you for taking the time. I'm very much looking forward to Prague. I'll be doing two things there. And of course, I want to promote what I'll be doing. Yes, Michael Saylor, but before we go into the details, how are preparations going? What's it going to be like in Prague this year?

Matyas (00:46.478)

man, it's so much things to do still. We are now in the sprinting mode with the whole team. We are very looking forward to it. It's gonna be awesome. The only unpredictable thing is the weather, but it's June, so probably it will be nice summer weather, hot and the beer will be cold. So the perfect combination and...

And you know, in the even organizing business, you have one certainty that always something will go wrong, but we are prepared for everything. So you will definitely enjoy it.

Niko (01:25.387)

Who are the main headliners of this year's edition of Bitcoin Prague, BTC Prague? Well, there is Michael Saylor, of course, and who else?

Matyas (01:34.734)

Yeah, so I'm very proud to say that we are bringing Jack Mallers to Prague for the first time. I met him in another two conferences and confirmed his attendance just a few weeks ago. So Jack Mallers, then Adam Beck, then for the first time, Tour de Mestre. I'm sorry if I butchered his name. Then...

Niko (01:59.178)

He's a great guy. I haven't met him personally, but I'm very much looking forward to meeting him. He's amazing.

Matyas (02:06.126)

He is amazing and I didn't know how he looks. Of course, I read all of his work and we just met in Honey Badger conference while waiting for a burger and we were chatting for 20 minutes. I didn't know he's a tour. Yeah. So I thought that I'm chatting to some random guy and then he introduced himself and I'm just like, okay. It's tour and this actually helped me to convince him because I was talking to just a

Niko (02:23.466)

I see.

Matyas (02:36.238)

normal guy random play yeah and then we made a very very good connection and he will he will he's preparing like perfect very very interesting talk it's titled bitcoin is a mythril for Europe so maybe some connection to Lord of the Rings I don't know

Niko (02:55.759)

Well, I'll be talking in my keynote, I'll be talking about the lessons from 1989. I am obsessed with communism and I see lots of strategic lessons that we can learn from the collapse basically of the Soviet Union and especially I'm very excited talking about that in Prague.

There's a reason why there's so much going on in Prague. You also had it in your amazing video. There's a reason why there's so much Bitcoin stuff going on in Eastern Europe in general. We're not supposed to call it Eastern Europe anymore, right? But you know what I mean.

Matyas (03:35.886)

Yeah, no, it's fine. No offense taken. I'm actually proud about our history, you know, because the scars made us what we are today.

Niko (03:47.243)

Absolutely. I mean, there's a reason why the Satoshi Nakamoto statue is in Budapest and there's a reason why the Honey Badger is in Riga and in Warsaw there's the film festival. And of course, BTC Prague is the biggest event in Europe, right?

Matyas (04:04.654)

It is, it is, yeah. Last year we had 6 ,500 people, this year we are ready to welcome 8 ,000 people. We are stretching the venue even more, so we rented more place and the Czech stage will be much bigger because so many Czech Bitcoiners are coming to Prague to see their favorite Czech Bitcoin speakers. And this year...

I think I feel confident enough that I'm bringing few very famous Czech speakers to the main stage. So they are not used to speak in English, but they have a lot to say. So you can, for those who want to see some famous Czech speakers, Daniel Steidrváld, he's a very famous Czech anarcho -capitalist. And he's famous because he...

he can put things in very funny way and pick the most ridiculous things on the state apparatus to show how nonsense this system is. And he's a Bitcoiner, you know, so I'm very, very much looking forward to this one.

Niko (05:16.97)

You see, that's why I want to talk about, you know, 1989, I want to talk about Vaclav Havel and Lech Walesa. I know I'm going to butcher the names. And Hungary even, because here in Austria, we are very East, very much in the East. I'm even more Eastern than you are in Prague right now, like on the map, right? But we don't have anarcho -capitalists.

But we do have communists that I can vote for in the European elections, which I think is absolutely ridiculous. But, you know, that's the that's the reality of it. So I'm also very much so that's the one thing that I'm going to do my keynote on on the Soviet Union. And then there is the fireside chat that I'm going to do with Michael Saylor. I've done that in Innsbruck twice, but that was digital. Now we do it on the stage. What are we going to do, Matthias?

Matyas (05:50.446)

in this.

Matyas (06:13.806)

So, you know the VIP stage is a perfect opportunity for everyone to meet the best and the brightest in the Bitcoin ecosystem, all the speakers, all the entrepreneurs, CEOs and founders of the companies in a curated environment, which is quiet and perfect for business networking and just like jump -starting the Bitcoin journey. It's...

the VIP stage is not recorded, so the speakers are able to share a little bit more from what might be not fitting for the main stage.

And not only because the audience is so big and we narrow it down to like 40 -50 people. So you can imagine after the fireside chat, you can ask a question, the speaker, he answer it. Then sometimes, and I know this from the last time, there is like a discussion between the parties and it's almost like a Socratic seminar style of thing, you know. So it gets very, very natural because it's a small group.

Niko (07:17.77)

Mm -hmm.

Matyas (07:24.079)

And after that you have an ideal situation where the ice is already broken and you can continue in the discussion with the speaker after the official fireside talk finish because the speaker will just hang out in the VIP area.

Niko (07:45.45)

So there's going to be more than one fireside chat, more than one, there's going to be a whole program on the VIP stage, but me and Michael, we're also going to be there. So we're going to have like 50, 60 people. I've seen the VIP stage. I was there last year. I think that honestly, of all the conferences that I've been to, yours was by far the best VIP area.

I mean, we don't want to sound elitist now. The whole conference is amazing. And if you're still on the fence about it, I can tell you that it's going to be absolutely great. I mean, last year there was no BlackRock ETF. You know, this year we are basically in the middle of society here with our Bitcoin conference. Yeah, and Prague is the perfect location for it. So I can tell you, if you're listening, you know,

Use my code was Bitcoin bring this the German code I'll put it in the description and get either a normal ticket or a VIP ticket if you can afford it. I know that there are many Bitcoins who can afford it and I think that and I really mean this now is the time to get in touch with people. It's not just about listening to the talks it's about meeting the other Bitcoiners and building businesses basically.

Matyas (08:58.286)

Yeah, Bitcoin is a growing ecosystem. I can see this from the first hand. I'm a program director of BTC Prague and I work with my brother. He is a business development part of the things and he tells me every day that the companies are hiring. They are looking for more connections.

They are looking not only for developers but marketers, sales, graphic designers and all kind of classic jobs opportunities are rising in the ecosystem because it's just another business like everything else just still new. If I compare it to the dot -com bubble...

early days of internet. We are probably still in the year 95. Yeah. So imagine how, how early we are and we have the very, very good situation that we can bet on the winner already on Bitcoin in the .com bubble. You didn't know which company will survive, but now with Bitcoin being the first and like far better than the second one.

Niko (10:01.129)

Hmph.

Matyas (10:13.614)

the bet is quite easy. So I would say I'm very happy that I'm here now and I wasn't there early.

Niko (10:23.178)

Agree 100 % I can see it also in the downloads and and you know click rates from my German channel, which is my main channel I just had a guest there Florian Bruce who is a great guy is an entrepreneur from from German He's only 26, but he's already running his own e -commerce business on Amazon And he's a big Bitcoiner and he said like his father He told him that he wanted he invested in the dot -com bubble and he didn't know what to invest in back then and then he asked him

would you have invested in the internet itself? And of course you would have. And that's what you can do with Bitcoin. And I think you say it's a business like anything else, but it really isn't because it's, I come from the media world and whenever I meet people from the classical legacy media world, they are super depressed. But today I know that, I mean,

Within Bitcoin, there's so much optimism and there's so much growth that I think, especially in Europe, we have to be super careful and vigilant that this growth stays here. I mean, Czech Republic is one of the most important Bitcoin hubs in Europe. But I think that it's very important to have this huge event in the middle of Europe and also to be talking between Europeans and Americans, because I think that lots of content and lots of discussions are just happening on American stages.

Matyas (11:46.638)

Yeah, yeah, true, true. And this was part of our mission, why we started BTC Prior, because we saw that a lot of information, a lot of discussion happens in English language because of US. It's a big market, one language, so you put something out and it instantly gets across so many people. But in Europe, because we have different languages and we are scattered, the communities are closed.

we saw the opportunity and I actually got this live ball moment in Innsbruck in 2022 when I saw the huge community super friendly, a little bit different than Czech.

but still very similar. And I got this idea to bridge and connect these communities across Europe because this can help us survive in the in upcoming years of uncertainty. You need to feel that you have allies in other countries.

Niko (12:31.497)

Mm -hmm.

Matyas (12:49.902)

and you really do because Bitcoin is uniting us. It doesn't matter where you are, we are decentralized. And I really love the idea of decentralization. If you take anything in the world, not only money, and you decentralize it, it always get better and more healthier.

Niko (13:06.889)

Mm -hmm.

Matyas (13:07.694)

So I really love this and with but still you need some trust. You need to build a bridge. You need to meet for the first time to agree on some terms between each other, make the friendship and then like me and you, yeah, like we met a few times, five times, but I consider you already a good friend because we know we share the values, you know, but we couldn't establish this relationship only via call or...

signal messages, right? It's not possible. You have to be there, meet the people, shake the hand and find the right people for you because the ecosystem is so colorful. Of course it's orange but it has many shapes. So you have to find your way in and show what you got and find the other side of the deal.

Niko (14:02.538)

It's true. I love going to Bitcoin conferences for this exact reason. Why do people go to Bitcoin conferences? Why do they go to meetups? Because most of the people at home, they are the crazy ones that always talk about Bitcoin and then they want to meet other Bitcoiners where it's normal to talk about Bitcoin. But then, of course, when you grow deeper into it, it's about making connections that are really lasting. And it's not about nationalities at all.

Matyas (14:21.55)

Yeah.

Niko (14:31.914)

I remember in El Salvador, I was making a joke about a French Bitcoiner and he was pissed at me because I even called him French. He said he's a Bitcoiner first, right? So it's like the idea that they want us to feel like Europeans, which never really works, but as Bitcoiners, it does work. And it's very important, especially in Europe, you're absolutely right, because...

I know what's going on in the German -speaking Bitcoin world. I know what's going on in the English -speaking Bitcoin world. I know very well what's going on in the US. Everybody knows what's going on in the US, right? But of course, it's very hard to know what's going on in Italy, what's going on in France, what's going on in Spain, and even in the smaller countries, of course, Eastern Europe. So I really enjoy this very much. And I personally have, like I said, with my obsession with communism,

I end up being an Austrian from Vienna. I always prefer going to Eastern Europe actually anyways, you know, but I think we really need to connect and build these relationships. And yeah, I mean, meeting, it doesn't matter on the VIP area or outside or for beers. I mean, what can you tell me about the side events? I mean, what's going on outside of the main venue?

Matyas (15:47.63)

Okay, so maybe I'll cover it from the other side of the question. I just turn it around. Side events, of course we have them, but we changed from last year that we have a party every night in the venue. So you don't have to leave the venue.

We figured from feedback, from surveys, that the people actually don't like to spend too much time traveling around Prague and looking for these small side events and spending a lot of time in the public transport. So we let the venue open until midnight every night and until three o 'clock in the morning on Saturday. And we will craft a party like...

just for networking, don't expect too much dancing. It's gonna be more like there are gonna be enough food and drinks to... You're smiling, you want to dance, right?

Niko (16:48.969)

No, no, no, no, I love, I actually don't want that.

Matyas (16:52.43)

So yeah, that's true. Yeah, like most of us don't want to dance on the after party. We just want to continue to talk to Bitcoiners.

and talk about Bitcoin only and about what we learn during the day, just sorting out the thoughts, making sure that we understand it correctly, because live -bob moment, it can be one, but if you don't catch it, it can just somehow disappear. So that's why it's important, I believe, at least for me, to really just like...

If you get something, maybe ask for more questions, encounter the speaker. Most of the speakers are absolutely happy to talk about their talk. They are very happy that someone asks additional questions. So we decided we will craft, we will create a perfect environment for this, for this mission, for more networking. So there will be a bar.

designed by Maydx, the Canadian artist, and also a stage which during the day will...

call during the day will be for speakers so they can they can use this as a meet and greet place after they talk they say okay guys we don't have more time for questions and answer but I will be at the meet and greet at the Maydex stage for another 30 minutes please meet me there and we can talk yeah this way we open the opportunities for for speakers to meet the audience

Matyas (18:30.286)

And in the night after the talks finish at seven o 'clock, we put the DJ there and we start playing some nice, chilling music, which is not disturbing and it's just underlying the mood for...

perfect networking and slowly finishing the evening until night. So we are ready for the next day and on Saturday evening we put the music a little bit more louder because we will celebrate and finish the whole conference.

Niko (19:06.409)

Yeah, I think this is extremely smart because if you just want to switch from a conference mode to a party mode, people, they're not going to join. I've seen this many times. It works sometimes with smaller, like very small conferences where you know exactly what kind of party vibe the people want, but in the end, people are just going to stand outside and talk to each other because that's what they've been...

coming there for. And of course, you said you told your story about Tour de Mista. This sounds stupid, but all the people that are on stage, they're just people. And there's no imbalance in Bitcoin. I always say that basically, I mean, I'm a Bitcoin podcaster, right? I could do an interesting interview with every single one of the guests, of the 8 ,000 guests that you expect in Prague.

I mean, it would take a while, but everybody has an interesting story to tell. It's just that some people are, you know, gotten into it quicker and now they enjoy staying on stage. And of course, Bitcoin is also about, for many people, about privacy, so they don't even want to go on stage. But I think it's no problem to talk to anybody. It's actually great. I come from legacy media, like I said, right? So nobody would ever come up to me and say, hey, Nico,

thank you for the article that you wrote last week, you know, that just doesn't happen. But on Bitcoin conferences, of course, many people will come up to me because they watch my content. And actually in Madeira, I had two people who asked me why I stopped the English newsletter and the English channel. And that was like, I never expected that. In a million years, I wouldn't expect that. So that's why that's actually that was the start of me thinking about, OK, how can I restart this? Because...

Only doing one language you have this problem with the connection. We couldn't be doing this right now So I'm trying to find a new way and with AI, you know soon We can just push a button and you can you know, you can speak in Czech and I can hear it in German And then it's all gonna be fine

Matyas (21:13.294)

Yeah, yeah. Yeah, I think it's a good idea to actually for you to start an English channel. I would be super, super interested to hear more about what is happening behind the German language barrier. That's probably what I would even read like really like focused newsletter. What is happening in in the market? Yeah, I'm just summarizing it. I would be very happy to read it.

Niko (21:28.616)

Mm.

Niko (21:41.321)

It's completely insane. It's completely insane. I would go as far as to say it's probably the biggest and most important market besides the American market. Because Germans hate inflation and they love engineering and they are now pissed off enough to look for...

Matyas (21:44.686)

Hmm.

Niko (22:04.393)

real solutions and Bitcoin is probably the best way to go about it. And I can see it in my numbers. Now that Bitcoin is going up, the numbers are growing, the interviews get more interesting. It's great and it's also important to have offers not because of the language. The language is important, but it's not just the language, it's the perspective. You need people have...

specific problems, specific countries, so you need a specific perspective. I think it's going well and I see the same thing maybe going on in Italy and Spain. I don't know, but we'll see about that in Prague.

Matyas (22:47.214)

Yes, yes, yes. This year I was focusing on going a little bit more deeper with the main stage because I think that people who like Bitcoin, who are coming to our conference, they are critical thinkers and they like to be challenged with ideas and go a little bit behind their comfort zone.

like you don't want to hear things which are too easy to digest yeah like we like to use our brain and just to connect what you were asking yes we will be we are having a panel on the Saturday which will focus on use cases on the different continents so last year it was all about Europe.

Niko (23:35.529)

Mm -hmm.

Matyas (23:38.926)

But this year we are stretching our influence, let's say, or our our curatorships to the other continents. So there will be Jack Lee speaking about Asia. There will be Abu Bakr Nurkar speaking about Africa continent. And there will be, let me just quickly remind.

for the US. It's Parker Lewis who will be speaking about US and Ricky will finish the line because he's traveling a lot and he knows the emerging markets all moderated by Joe Hall. So this is the panel which I would just pick from the Saturday program to give you...

Niko (24:11.496)

Yes.

Matyas (24:34.415)

give you impression how the Bitcoin is uniting the whole world because same as we have a little differences in Europe, Czechs are maybe a little bit more privacy focused than Germans I would say.

Niko (24:49.288)

Mm -hmm.

Matyas (24:49.39)

And in Asia, there are more about the money aspect of Bitcoin. In Africa, there are more about the technology aspect about the Bitcoin. And if money, it's more about the second layers. In US, it's also a little bit different. So these big pictures presented in one place with the option to go and talk to speakers and people who really told you this information. It's just...

It's just no brainer. This opportunity is so big and so uneven. Yeah, like that I cannot describe it. You know, it's and I have, I never stole this in any other podcast, but I'm very confident to tell you, Nico, that I think that coming to you, to the conference, to Bitcoin conference, it's a life changing, life changing.

opportunity. It's the experience for those who really want can be such big that it opens absolutely different world and I'm talking from my own experience because attending my first conference in 2017 really changed my life and I got the idea that I will organize conferences for others.

Niko (26:12.937)

I couldn't agree more because I know and I've been there and I just know that talking to people personally is just different. Because if you feel each other and if you like each other then things happen. And there are so many people, including Parker by the way, I'm actually using his tool that he's working on right now, Sebride, I'm using for my own Bitcoin company.

my Bitcoin media company and it's great. And of course I have many things that I want to ask that they can even make even better, but that's just one person, right? And there's so many persons that I want to talk to and reach out to and there's at least, I'm looking at this right now, I see Eric Weiss, I see Paolo Ardoinno, Teder of course, sorry for butchering his name.

Ludmila is there, Anil Patel. I'm using Anil's graphics for basically all my Bitcoin talks, right? Because he does the best. There is no second best. There is no second best Bitcoin infographics, right? And there's like, I see 50 other people that I could just, but people just go on the website, btcproduct .com, check it out, use my German code, wasbitcoinbring, get yourself a ticket, come there.

Matyas (27:18.542)

Yes.

Niko (27:32.681)

Matthias, one of the things that I want to do with this podcast is I want to stop it at about 30 minutes because we already have 600 different other podcasts that go about two hours each episode. So I'll leave you there. I'm very much looking forward to see you in Prague. I'm looking forward to do my talk about the Soviets and the Bitcoin and of course the whole Michael Saylor thing. For me personally, of course, is a highlight. I hope to see many people who will listen to this right now.

Send me your questions. You can put your questions in the comments. Send the questions on Twitter for Michael Saylor. Of course we'll prepare something special, but if there is one or two questions from the outside I can bring in, I'm happy to do that.

Matyas (28:16.366)

Thank you Nico for inviting me and it's good idea to end it before 30 minutes. That's the regular time length of my podcast. Would I listen? I usually take like three times for 30 minutes because it's just the time for a good focus, I would say. After 30 minutes, you lose the focus.

Niko (28:37.289)

And it's all... And you know why, just for the end, I'll just tell the story, you know why, you know, like, talk and podcasts are so long and so successful? Like, why Joe Rogan talks for an hour and a half or two hours and why he's so successful? Because Americans spend so much time in their cars.

Matyas (28:54.638)

What?

Matyas (28:59.95)

this.

Niko (29:00.808)

but the Europeans don't spend so much time commuting. So it's more like 20, 30 minutes. So we'll end it there. But Americans can, of course, still listen. We are happy about that. Mattias, all the best. I'll see you soon in Prague. Look very much looking forward to it.

Matyas (29:11.306)

All right. Thank you.

Matyas (29:18.798)

See you everybody, bye.

a while back in Madeira, two Bitcoiners came up to me and asked about my English channel. They said they liked the podcast especially and waited for new episodes. I have to admit, I was stunned. And a bit moved.

I told them I had stopped producing English content in order to concentrate on my main German channel for a while.

Well, that worked.

“Was Bitcoin bringt” is now one of the main German language Bitcoin podcasts, the only one produced in a studio - and the most successful Austrian finance podcast period. Hell, we even managed to get our logo up on a sleeve of an Austrian football club (soccer for my American friends).

Quite something, no?

I’m very proud and happy.

And this is the perfect time to restart the Fix the money substack - with a fresh mission.

This is my way to stay connected with the global Bitcoin community. But I only want to add if the addition is worth it.

• So there will be articles, but only if I really have something to say: pure signal.

• There will be podcast interviews, but only if I just cannot live without talking to a specific person.

• I will also use the Substack to try as many AI tools as possible while producing content. Just to stay on top of things.

• The goal: Seamless transition between languages. One day I want to provide my German content (150 episodes and counting) in English - and my English content in German.

For now, we start slow. Soon I will drop the first video podcast episode on Fix the money that will only be published via Substack - we’ll talk about Prague and my upcoming fireside chat with Michael Saylor.

Thank you for joining me on this ride.

All the best, Niko

If you’re not following the trial of failed FTX CEO Sam Bankman-Fried, it’s a doozy.

Billions of dollars gone poof, crypto tokens artificially propped up, paper Bitcoin trading hands like fidget spinners, and a vast donation network that looks more like an evil Soviet spymaster plot than any legitimate trading platform. And I didn’t even mention the strange nerd orgies in the Bahamas headquarters.

What do you need to know? FTX, a crypto exchange operating in the Bahamas, was a premiere online platform for many crypto traders that gained significant influence among politicians, celebrities, and private investors. While it gained ground publicly, it all turned out to be a ponzi scam. It’s estimated that over $230 million were doled out to friends of favor and even more was gambled away directly from customer funds.

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The money seemed virtually printed, as billions of dollars poured into the platform while investors, customers, and regulators were oblivious to the massive margin shell game being played within.

It became a piggy bank for sponsorship deals, millions in left-wing political spending, and a wet bag of a slush fund for the parents, family, and friends of its founder Sam Bankman-Fried.

I’ve been quite clear on this topic from early on. I wrote my first piece criticizing SBF and FTX’s business model back in August of 2022. It was clear they were basing themselves in the Bahamas while pumping a scam across international borders that were lining their pockets and screwing depositors. The truth became more clear in September even though SBF was the talk of the town on crypto twitter, in the halls of Washington, D.C., and making fake celebrity friends all along the way.

By Thanksgiving of 2022, the scam had been revealed.

Much more than just a crypto exchange gone broke because of a bank run, FTX’s debts had been subsumed thanks to its relationship with Alameda Research, the hedge fund founded by SBF and his Stanford buddies, which had an unlimited credit limit on the platform that eventually gambled, lent, and donated away billions of dollars of custodied cryptocurrency.

As the ongoing criminal trial of SBF is revealing, this was not only a long-term plan of FTX since its inception, but it was literally baked into the code of the FTT token that underpinned all FTX trades.

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At the same time, the court testimonies revealed that as FTX and Alameda’s debts climbed higher, there was an active campaign to wager against the rise of the Bitcoin price in order to keep those debts in check. There may have been some downward pressure, and we’re still down in fiat terms since then, but we learned very early on that Bitcoin is bigger than all this bullshit from an Adderall-fueled Caribbean utopia that created a fake crypto token empire.

While SBF played the role of an effective altruist who gave political money to the right people and causes, he was setting fire to the reputation of cryptocurrency and providing us with the starkest example of why a decentralized protocol like Bitcoin stands apart.

While the gains in SBF’s FTT token, his favored VC-backed coin Solana, and other crypto projects were mostly vaporware, he was always held in check by the underlying tech and market of Bitcoin. That’s why he and his operatives were so intent on bringing the price down, conspiring to keep the price below $20K.

I will keep paying attention to the trial because it does provide us with a night and day division of why Bitcoin stands leagues above the crypto casino game. For one, there’s an actual use case for Bitcoin. This entire website is filled with examples.

Another, because of its anonymous founding, proof-of-work algorithm, and ability to validate transactions independently, there is no way to fake Bitcoin or fool the markets, like SBF attempted to do with his own tokens and exchange.

There may be some sour news coverage around Bitcoin when it comes to this trial and until SBF makes his prison cell a permanent home for the billions he stole, but the protocol will eventually rise above it all.

In the end, I’m happy to be on the side of Bitcoin and away from the crypto circus. Aren’t you?

Best,

Yaël

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“There is no capacity to kill Bitcoin. Even the Chinese with their firewall and their extreme intervention in their society could not kill Bitcoin…you can’t kill Bitcoin. But new iterations of this that are trying to mimic it, that are not fully distributed, that are not fully open, there are different mechanisms to kill it…the essence of Bitcoin is what Libra and Facebook and corporates are trying to mimic.”

So said Republican Congressman Patrick McHenry in July 2019 on CNBC.

Who is McHenry and why is it notable that he be mentioned on this Bitcoin-focused website now?

If you’ve caught wind of the some of the political turbulence in the American capital lately, you’ll know that the Speaker of the House, U.S. Rep. Kevin McCarthy of California, has been forcefully “vacated” from his position as third-in-line to the President and the chief legislator of the lower legislative chamber in the United States.

The reasons for this institutional coup d’état are interesting alone ($33 trillion in debt and $2+ trillion budgets will do that), but what others have found more striking that that the empty Speaker’s chair has been temporarily filled by the aforementioned McHenry, a noted Bitcoiner and currently chair of the powerful House Financial Services Committee.

He has co-sponsored legislation on the legality of stablecoins and a regulatory structure for Bitcoin and its crypto-offspring, and has often hooked horns with SEC chairman Gary Gensler, who many see as either a secret Bitcoin champion or silent assassin of all cryptocurrencies.

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In fact, in early 2021, Rep. McHenry was the first US politician to formally host the Bitcoin whitepaper on his government-owned congressional website.

When McHenry posted the PDF on his site, I noted it at the time with a bit of skepticism. I knew McHenry and his positions fairly well. I was a newspaper reporter in his district in my early 20s, and found little reason to arch an eyebrow out of interest when it came to his public policy choices (he has been a noted opponent of allowing cannabis businesses to open bank accounts).

In the fall of 2023, however, there is ever more reason to concentrate on McHenry has his attitude to Bitcoin. Due to the sinking of McCarthy’s speakership, McHenry is the speaker pro tempore of the US House, endowing him with certain authority when it comes to House procedure and rule-making.

Though the House won’t convene until another Speaker of the House has been elected by a majority of the GOP conference, the temporarily placement of McHenry atop the Speaker’s chair has elicited much excitement among politically-active Bitcoiner and crypto folks.

It begs the question: what would happen if the Speaker of the House — arguably one of the most powerful people in US domestic politics — was a Bitcoiner? Would it change political attitude toward Satoshi’s innovation? Would it mean an open season on Bitcoin-friendly rules and laws emanating from the nation’s capital that would have influence across the West?

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This is an additional curiosity because another powerful GOP lawmaker, Majority Whip Tom Emmer of Minnesota, is also a Bitcoin-friendly politician who’s name has been rumored as a potential Speaker candidate. He’s sponsored and introduced bills both protecting Bitcoin private keys from seizure and outlawing CBDCs.

Emmer is already well positioned as a powerful GOP legislator within the leadership. McHenry has standing now as chairman of one of the most vital committees and now an interim speaker until a formal vote is held.

While they would likely advance plenty of conservative legislation that may or may not be favorable to Bitcoiners, we can assume that hostility to Bitcoin from the Republican House would at least be extinguished and replaced with some enthusiasm.

Will that matter or change anything?

At least legislatively, and this may be controversial among Bitcoin policy people, but I see no need to have additional federal laws on Bitcoin. Perhaps there are some clearer guidelines that could be explained or mandated at agencies like the IRS, the FBI, or to any of the banking authorities, but Bitcoin is, like McHenry stated, unable to be killed in any meaningful way. No matter how hard they try.

So any positive legislation on Bitcoin wouldn’t really be necessary, but I could definitely see a capacity for generally pro-crypto policy that would halt debanking of those who stack sats via their bank accounts, or perhaps the tech-neutral crypto bills that grant commodity status to competing tokens like Ethereum.

Perhaps they could even stop the fiat money printing that has continued to imperil the American people with debt and deficits that make their lives worse? Who knows.

I’ve already written about how political Bitcoin is now all the rage — especially with presidential contenders like Democrat Robert F. Kennedy Jr., GOP businessman Vivek Ramaswamy, and even Florida Gov. Ron DeSantis — even if it comes packaged with a lot of other really bad ideas.

What’s more necessary than anything, when it comes to Bitcoin’s place in politics, is that it’s mostly left alone and we remain free to do whatever we wish. That’s bigger than any political plan or piece of legislation. It’s the attitude of negative rights versus positive ones. “Congress shall not infringe,” but on money.

Again, this would have to take place within a Congress that is open to the idea — or willing to be convinced — and it may move some institutional money into the Orange Coin for the time being. But it’s a tall order, and probably not necessary anyway.

It’s a nice thought experiment, but to the many of us who have paid attention to politics — especially the politics of Bitcoin — there’s every reason to be skeptical and even apprehensive. Bitcoin is not the wonder that it is because of any law or institution. If anything, it was created to route around the entire system because it is largely ruled by fiat.

If the US had a Speaker of the House who was a Bitcoiner, things would marginally be better, but only as an added benefit. Considering the bribes of cash and gold bars allegedly doled out to Senators, perhaps they’d even stack stats faster than the rest of us. That ain’t so great. But I digress.

The rest of us would continue to live, stack sats, live value-for-value, and continue to opt out of fiat insanity. Questioned on that value, I’m happy with my own decision to stay sovereign. How about you?

Best,

Yaël

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Today we sit down with 21Bitcoin CEO Daniel Winklhammer to discuss the “business” of being a Bitcoin brokerage in Europe.

What happens behind the scenes? Is the regulatory landscape improving for bitcoin companies? How much will lightning integration play in the future of bitcoin business?

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All that and more. Enjoy!

Best,

Yaël

Contact:

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Bankers make for easy villains.

In the 1946 Christmas classic, It’s a Wonderful Life, Mr. Potter is the ultimate foil: a dastardly businessman who owns every piece of town and wants to use his minority board position to overtake the neighborhood bank for being too charitable in its loans to members of the community.

Only George Bailey (played by Jimmy Stewart), through the intervention of Christmas angels, musters up the strength to oppose him and save the town.

In Shakespeare's Merchant of Venice, written in the late 1500s, the moneylender Shylock is the enemy of the play, demanding a “pound of flesh” for a defaulted loan by our main hero Antonio, an otherwise successful merchant.

Indeed, the trope of the evil banker persists throughout the Western literary and cultural canon, even playing a big role in the Old and New Testaments and shaping many mantras of the Christian religion.

In our present age, banks are once again in the crosshairs, albeit for very different reasons. It’s the age of debanking.

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THE REAL BANKING CRISIS

To contextualize this, we must understand how banks have interacted with our public institutions in the last several decades.

This is much beyond the billions or even trillions of dollars in bailouts from Western governments throughout several banking crises, whether in 2008, through central banks like the Federal Reserve, or the recent actions to save Silicon Valley Bank and Signature Bank with government deposit insurance funds.

For years, central banks around the world kept rates at historical lows, offering massive pumps of liquidity into markets and banks to keep lending at a constant flow. Money flooded the system, and if you believe the warnings of Austrian economists, this loose monetary policy facilitated a financial and banking crisis we are only coming to terms with.

Now, as inflation heats up and rates get jacked up across the world, “tight” money is the new guiding star. The introduction of Bitcoin and its crypto offspring has opened an entirely new world of true borderless, censor-proof cash that exists mostly outside the traditional financial sector.

At the same time, governments starved of resources are turning to punitive measures to ensure citizens and firms are “paying their fair share”. Political movements are giving them extra ammunition to crank up the oppression.

In 2023, many bank customers are facing a new regime that routinely freezes balances, limits transactions, or even shuts down accounts entirely. The Canadian trucker Freedom Convoy and UK politician Nigel Farage are only the latest public examples.

The reason given for debanking varies but ultimately comes down to a question of risk exposure. For Farage, it was questions about his business dealings and perhaps his political views. Others are tied to questions about money laundering, terrorism, or people at risk of being “politically exposed”. Often, banks are not required to disclose why they are shutting off banking access to a customer.

For the Canadian truckers, it was about an instantaneous response to the invocation of the Emergency Act, which froze the assets (and Bitcoin addresses) of those involved in raising funds for the downtown Ottawa protest.

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In free societies, banks are (for the most part) owned and operated as private entities. They must apply for and receive various licenses and permits from state authorities to custody customer funds, make loans, and offer financing to various businesses. These banks exist at the remit of governments and must dedicate a growing part of their revenue to compliance with state mandates.

WHY DEBANKING HAPPENS

In order to offer banking services, a firm must adhere to a complicated mix of regulations and disclosures that have only grown more voluminous in the past two decades.

The US PATRIOT Act, passed in the wake of 9/11 and the Dodd-Frank Wall Street Reform and Consumer Protection Act, passed after the 2008 financial crisis, have ratcheted up the compliance that banks must follow.

More precise KYC/AML rules (know your customer and anti-money laundering) require banks not just to gather all known information on their customers, but also to police their transactions and ensure there’s no funny business.

When banks decide that an account holder is too risky, it is a complicated calculation that serves the regulatory overlords. Whether it’s risk of fraud, political exposure, or money laundering concerns, banks have now been deputized to run financial surveillance operations on their customers or risk losing their business.

It’s an unfortunate situation that will leave many vulnerable to losing their accounts, many of them innocent actors. In the pursuit of actual criminals, terrorists, or you name it, banks now must treat all non-routine transactions as suspicious. And that is detrimental to the average bank account holder.

How this is carried out is still unclear. Many neobanks and larger institutions use algorithms to determine account risk, and some have likely been too harsh in cutting off bank access. But at its core, the debanking crisis stems from overly burdensome government regulation, and we must admit that. The rules are the villains.

SOLVING IT

Some measures are being considered to stop the debanking. In the US and the UK, there is potential legislation to ensure citizens’ “rights” to a bank account. Some European nations guarantee their citizens banking services through the Post Office, and others have proposed this where it doesn’t yet apply.

But beyond using yet more legislation and government force, why not turn to the censorship-proof Bitcoin protocol? Why not embrace the privacy-facing tools offered by many developers and entrepreneurs in the Bitcoin space to supercharge our post-banking financial life?

It’s surely something Farage has been exposed to, considering he’s spoken at various Bitcoin conferences and been interviewed on Bitcoin-centric media. But he seems set on a political, rather than technological, solution.

In a situation where employees begin receiving their pay in sats, and we begin exchanging value for Bitcoin to replace fiat currencies, outside the regulated banking system, we can envision an ecosystem where debanking is less of a concern. Bitcoin fixes this.

Of course, we are far from a Bitcoin silver bullet when it comes to banking and compliance issues. Acquiring Bitcoin is still mostly done via regulated exchanges, which are now facing their own KYC/AML regulations that are even more onerous than those imposed on banks.

And on-chain Bitcoin, at present, remains entirely transparent and can be easily demystified by chain surveillance companies now often working hand-in-hand with governments and tax authorities.

If we want to conjure a solution to the problem of debanking, we need people to take Bitcoin seriously. That means more adoption, more trade, and more tools to make it a true freedom technology. Some of this already exists, but we need much more volume to make it happen.

Will that save our wealth by embracing the golden coin and eschewing traditional banks? At least for me, it’s a principal tool I’m keeping sharpened. I hope the same is true for you as well.

Best,

Yaël

This post is sponsored by…

21bitcoin - The easy way to buy, sell, save and send Bitcoin.

21bitcoin is a Bitcoin-only app, not an exchange. No distractions, individual savings plan, very low fees, first-class personal support, and a German bank account. Based in the Austrian Alps, available throughout Europe. Download now.

Use code “FIXTHEMONEY” to get up to 20% off your fees :)

Check out 21bitcoin

Not your keys, not your coins! You need a hardware wallet. Check out the Bitbox02 - Swiss-made, secure, beautiful, open source, Tor support, Bitcoin only and all-around awesome!

Use code “FIXTHEMONEY” to get 5% off :)

Show me the Bitbox02