The Peter McCormack Show (Peter McCormack)
Explorez tous les épisodes de The Peter McCormack Show
| Date | Titre | Durée | |
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| 30 Sep 2022 | Bitcoin & the Energy Transition with Nima Tabatabai | 01:19:26 | |
“The fact that you had the opportunity to even consider becoming an energy generator, that’s purely because solar panels as a technology became so cheap and so accessible…in the hands of every person soon is going to be the ability to participate in the energy system and to be self-sovereign.” Nima Tabatabai is co-founder of Optimize Infrastructure. In this interview, we discuss how battery technology for energy grids, solar’s overwhelming economic case, energy sovereignty, and how combining batteries, Bitcoin and solar results in the most flexible energy assets possible. - - - - In 2010 solar power generated 34 terawatt hours (TWh) per year across the globe. By the end of 2021, this has increased to 1,033 TWh per year. There are a number of reasons for this dramatic increase, but a prime driver is a reduction in costs. Between 2009 and 2019 the price of electricity from solar declined by 89%. The International Energy Agency in 2020 declared solar power offered the “cheapest…electricity in history”. As Nima Tabatabai states in this podcast, this drop in price is perhaps the greatest example of Jeff Booth’s assertion that technology is deflationary. Research and development of solar technologies have been affected positively and negatively by crises and political dogmas. Nevertheless, since the 1970s there has been a strong ‘learning effect’ across the whole production process resulting in an exponential reduction in costs. Nevertheless, the discussion of solar energy as a reliable part of the energy mix still stirs strong negative responses. Intermittency is a major concern: solar can’t work at night, and it’s deemed to be materially ineffective in cloudy weather and at high latitudes. Essentially, detractors state solar power supply can’t efficiently fit demand. There are also issues around land requirements, input materials and waste. But, are these concerns valid? Can solar be a reliable and sizeable source of energy? If so, what are the constraints and limitations? Could battery technology resolve concerns over intermittency? What would be needed to complement solar energy? Are our energy grids ready to assimilate decentralized power sources? And, what needs to be done to maximise the potential of Bitcoin in subsidising solar? - - - - This episode’s sponsors:
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| 04 Oct 2022 | How Bitcoin Helps Mitigate Climate Change with Harald Rauter | 01:42:19 | |
“Can we run the same models, but with better data? Can we get to a 1.5-degree world? And that’s the ultimate nuclear argument for how Bitcoin mining actually makes sense…where does it make sense to engage with policymakers, to actually build on their language, with their models, rerunning it but with Bitcoin mining, and Bitcoin in the various dimensions as the X factor in the equation.” Harald Rauter is an environmentalist and Bitcoiner. In this interview, we discuss how UN climate change action is predicated on socio-economic scenarios that no longer apply (i.e. a cooperative world with improving equality), and how Bitcoin’s trustless market-based support for the energy transition could be the solution. - - - - The Paris Climate Accords in 2016 set the goal to limit global warming to below 2°C, but preferably 1.5°C, from pre-industrial levels. Following this, the UN’S Intergovernmental Panel on Climate Change in 2018 produced a report setting out the impacts of global warming of 1.5°C, and the pathways to keep warming below 1.5°C. The pathways were developed from forecasts of greenhouse gas emissions and radiative forces affecting climate change, and five different plausible scenarios of how the world may evolve in the future in socio-economic terms. These extend from an optimistic scenario where society starts shifting to a sustainable future, to a pessimistic scenario of a multi-polar world focused on national interests. Not all of the scenarios had mitigation pathways developed. The issue is that the world has changed drastically in the short time since the IPCC produced the report: it now resembles the pessimistic scenarios for which we have no mitigation pathways. This is obviously a problem, but not one that is being widely discussed, let alone having potential solutions considered. However, there are some working with environmental investors and policymakers who are seeing Bitcoin’s utility in a new light. The world is waking up to Bitcoin being able to support energy grids, subsidise the harnessing of stranded renewable energy and utilise waste methane. What isn’t commonly discussed is that it can do all of this without the need for cooperation: it is a trustless protocol with a market-based utility. Bitcoin mining could potentially be an important factor in mitigating climate change and limiting warming to 1.5°C, in an uncooperative world. What is needed is for it to be accounted for in the open source modelling work the IPCC has made available. Once we can quantify its importance, we can educate the decision-makers, and the market should take care of the rest. - - - - This episode’s sponsors:
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| 06 Oct 2022 | Bitcoin, Unleashing an Ocean of Energy with Nathaniel Harmon | 02:39:18 | |
“Where I think the real valuable conversation is, is not debating the science because again, I am a scientist, and I can back that shit up with fucking receipts. And that’s not going to be a fun debate for anybody. What’s the fun debate is ‘What do we actually do about it?’” Nathaniel Harmon is an oceanographer, Bitcoiner and cofounder of OceanBit. In this interview, we discuss how an old technology deriving energy from ocean temperature differences can provide unlimited renewable baseload energy, and Bitcoin’s vital and symbiotic role. - - - - In the 1880s, a French engineer devised an engine that generated renewable energy from the oceans: Ocean Thermal Energy Conversion (OTEC). It works by harnessing the large temperature differences between warm ocean surfaces and cold deep waters. This can occur within relatively short vertical distances (i.e. 100m). Such differences can be used to evaporate ammonia, driving a turbine, after which the ammonia can be re-liquified in a closed cycle system. The issue since the 1880s has been the technology has not been able to achieve economies of scale in competition with cheaper energy sources i.e. coal, oil and gas. The first OTEC plant was built in the 1930s, following which a further 14 test plants have been built at various times and geographies. But, no project has been able to overcome the hurdle of progressing from prototype to operational plant. And yet, given the size of the ocean, OTEC is the largest untapped renewable energy source in the world. Further, given the temperature differences don’t subside at night, it is a baseload supply. The potential is obviously huge. Anything that could be used to offset the capital costs of the R&D phase could lead to a new energy revolution. Enter Bitcoin. Bitcoin mining’s utility in directly monetising energy provides significant flexibility for developing a capital-efficient OTEC prototype. Such a facility would not need to be tethered to transmission lines: it would be able to exploit the best locations for OTEC around the equator. The genius in the proposal though is that OTEC and Bitcoin mining are symbiotic: access to limitless cold water means mining efficiency can be maximised. And there’s more. The production of energy in the ocean opens up all kinds of opportunities that could literally change the world. All from a technology that had all but been forgotten, but now stands to be reinvigorated by Bitcoin. - - - - This episode’s sponsors:
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| 08 Oct 2022 | Why Fiat Drives the Wealth Divide with Avik Roy | 01:34:55 | |
“Free enterprise and individual liberty and innovation/entrepreneurship do actually increase prosperity for lower and middle-income people, they’ve done that all over the world; we’ve lifted a billion people out of poverty in India and China over the last 20 years...and we can do that again.” Avik Roy is president of the Foundation for Research on Equal Opportunity think tank and a policy Editor at Forbes. In this interview, we discuss how society can improve social mobility through free markets, individual liberty, innovation, social integration, energy freedom, housing growth and harnessing good deflation. - - - - America was built on the notion of social mobility. The ‘land of opportunity’ opened its arms to the world. And they came from all corners. Most arrived with little to their name. But countless stories of aspirational success followed. Hard work, tenacity, and innovation were rewarded. It wasn’t perfect, but the American Dream was a theme that built a new hegemonic power not on privilege, but on the closest any major power has come to meritocratic society. That was America up to the 1970s. Since then social mobility has all but seized up, and has even started to decline. We are now entering a period when future generations are likely to be worse off than their predecessors. Is this because governments have failed? Are the libertarians right? Do we need to unshackle humans from collective interference? Or, is there a way for society to flourish with the help of institutional collaboration? The Foundation for Research on Equal Opportunity (FREOPP) have a mission to expand “economic opportunity to those who least have it”. They provide policy advice on all the major areas of governmental concern: criminal justice, health, education, energy, finance, housing, trade etc. etc. The tools it advocates politicians use are individual liberty, free enterprise, technological innovation, and pluralism. The aim is to make society more equal. Reducing inequality makes society more prosperous. American history is the best evidence for that. Misjudged policies and a reactive and intrusive approach from governments have allowed inequality to increase over the past decades. To change means that the status quo must be challenged. Such change means looking forward not backwards. Whilst history can inspire, it doesn’t necessarily show the way. New ways of thinking must be embraced. The deflationary forces of innovation must be harnessed. And destructive polarisation must be defeated. American exceptionalism requires a renewed collaborative spirit. Bitcoiners can help drive that movement. - - - - This episode’s sponsors:
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| 10 Oct 2022 | Europe in Crisis with Lyn Alden | 01:04:15 | |
“This period looks a lot like the 1940s, which is when you have a combination of high debt and high inflation, which is not what you had in the 70s. In the 70s they had low debt and high inflation, which means they had a lot more tools to respond to it…when you have that combination of both…that’s the closest thing that a central bank has to a checkmate scenario, where there’s only bad options.” Lyn Alden is a macroeconomist and investment strategist. In this interview, we discuss the recent market turmoil that followed the UK government's proposed tax cuts. Why did the market reaction nearly result in the collapse of UK pension funds? What are the underlying issues? Where are we heading? - - - - Liz Truss became the UK’s new Prime Minister on the 6th of September. She immediately worked to develop a financial package that would protect people from unprecedented hikes in energy prices. At the same time, Truss was keen to implement a long-held economic ideology predicated on stimulating growth through low taxes and reduced regulatory burdens. A political judgement was made to prioritise promulgating tax cuts ahead of any assessment of what spending cuts would be required to balance the budget; a huge emergency fiscal package was being combined with reductions in revenue. In the absence of any other information, the market took fright: the government wasn’t deemed to be in control of a burgeoning debt pile. Immediately following the government announcement, the bond interest rates rose sharply whilst the British pound dropped precipitously. Despite government protests that the market response was due to external factors, the messaging was clear: the UK economy is becoming dangerously unbalanced. Within days the Bank of England had to react and start a £65 billion purchase programme to save a number of pension funds from collapse. So, what actually happened? Experts, commentators and politicians have argued about the causes and outlook, whilst mortgage rates have rocketed such that emergency payments for energy costs will be dwarfed by additional mortgage payments. Is the UK economy at risk? If so, why, and what is the outlook? Does history teach us anything? And, fundamentally, can debt be brought back under control? - - - - This episode’s sponsors:
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| 12 Oct 2022 | The Path of Freedom and Sovereignty with Natalie Smolenski | 01:57:45 | |
“The only way that tyranny is prevented is a strong civil society that the state actually becomes concerned about.” Natalie Smolenski is an Executive Director of the Texas Bitcoin Foundation and a Fellow at the Bitcoin Policy Institute. In this interview, we discuss the elimination of cash, the importance of Bitcoin to a free society, and the clear and present danger posed by CBDCs. - - - - Like the fable of a frog being not perceiving danger when slowly boiled, citizens in mature democracies have been surrendering to the steady erosion of their privacy and rights. The issue is that society now stands unknowingly at the edge of a precipice. Governments and compliant businesses are working on a technology that they will sell as providing utility but could herald the end of democracy: CBDCs. Whilst Bitcoiners are aware of the dangers, it seems as though the rest of society, including decision-makers, are ignorant. Faster, less costly, more convenient payment systems - what’s the problem many will ask. The risks of providing unfettered access to arguably the most critical component of our private data do not resonate with those who have already traded their privacy with social media companies. But, there is obviously a massive difference between surveillance capitalism and unprecendented government oversight of individuals’ financial data. And further, as Natalie Smolenski alludes to in the whitepaper she has written with Dan Held, “Why the U.S. Should Reject Central Bank Digital Currencies”, adopting CBDCs could be a one-way valve: reversing political will and technology is formidably hard. Once cash has gone, it won’t be coming back. The battle is not only for democracy, it is for prosperity. The American experiment has shown that bottom up innovation can thrive in a free society. It is hard to imagine the industrial revolution occurring if feudalism was still the dominant form of societal organisation. It was the enlightenment, the development of ideas of freedom, tolerance, fraternity and rights that enabled humans to flourish. This is perhaps Bitcoiners' most important fight. Education, advocacy and conviction are our weapons. Maintaining our personal sovereignty is the prize. - - - - This episode’s sponsors:
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| 14 Oct 2022 | Bitcoin, The Critical Money Layer with Nik Bhatia | 01:58:08 | |
“All of that monetary profligacy over the last 10 years put the Fed’s reputation on watch; everybody and their mother knows about the Fed and its willingness to just do QE infinity, and so in a post-pandemic world where they got caught, basically, without a plan, now they have to preserve their reputation.” Nik Bhatia is Author of Layered Money and founder of TheBitcoinLayer.com. In this interview, we discuss Jeff Snider’s Eurodollar ideas: how all money is credit money; why Bitcoin will be a check, but will not replace, fractional reserve banking; and how Bitcoin will complement the dollar as a generational store of value. - - - - Three months ago we interviewed Jeff Snider who discussed the Eurodollar system, how Central Banks aren’t in control of the levers of money, and why we could be entering a deflationary depression. The show generated a huge amount of interest, particularly because despite the Eurodollar system being opaque and poorly understood, it is arguably a central cog in the global economy. Nik Bhatia, amongst other esteemed commentators, was compelled to respond to Jeff’s show. This is because Jeff’s ideas and the way he presents them are enlightening and engaging. There is broad agreement regarding the unacknowledged criticality of this part of the global economic system, and the resultant challenge it presents for being able to define money. There is also consensus that inflation won’t be the runaway phenomenon some are warning of, because the impact of QE was offset by tightening in the Eurodollar market. As such, deflationary pressures could soon become apparent meaning banks should be taking more risk to stimulate growth. It is fair to state Nic is an admirer of Jeff: Nic attributes Jeff’s seminal work to helping him develop Layered Money. However, Nic does also have some important divergent opinions from Jeff. Nik believes that the banking system isn’t out of control. Whilst it doesn’t necessarily have the power it seeks to portray it does, neither is it an impotent bystander. The recent moves to quell inflation have only just begun in earnest. Could the Fed show that it has teeth in this regard? What is most illuminating however is their convergent ideas around Bitcoin. Whilst presented in different ways, they both see Bitcoin’s role as an important store of value. They also agree that fiat’s elasticity will continue to be a desired utility. What Nik leads on in this regard is that Bitcoin can act as a vital check on fiat and Central Banks: it makes money pluralist. - - - - This episode’s sponsors:
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| 17 Oct 2022 | How the US Dollar Shortage is Driving Global Instability with Jeff Snider | 01:30:34 | |
“You have to understand what the Fed says in public is not what it says in private. You look at some of the academic studies, the literature, they know they have no idea what they’re doing. But their job requires them to tell the public that they do.” Jeff Snider is co-host of the Eurodollar University podcast and Head of Global Research at Atlas Financial Advisors. In this interview, we discuss the crazy possibility that nobody knows what money is, and as a result, nobody knows how to run or fix the economy. Central banks and governments are essentially engaged in a high-risk game of pretend. - - - - Every year around 800 million containers (categorised as Twenty-foot Equivalent Units, TEUs) are handled by ports every year. This represents around 80% of official global trade. Harvard has produced an incredible visualization of total global trade. They have populated the globe with the origin of exports of every type of product. Each tiny dot represents $100 million of exports. The globe is covered in a mass of tiny dots. This complex, interconnected and shadowy web of global trade, where final products, intermediate inputs and raw materials are exchanged on a massive scale, represents about 50-60% of global GDP. The rest is made up of all kinds of activities, business investment, personal consumption and government expenditure. The IMF predicts that the combined GDP of the world economies will exceed $100 trillion by the end of 2022. However, this is dwarfed by global wealth, which is estimated to be over $1,500 trillion. To put these numbers into context, US debt is currently estimated to be over $31 trillion, whilst global debt is reckoned to be over $300 trillion. Global finance, which helps manage and fuel global trade and debt, is expected to be valued at $25 trillion this year. These are obvious gigantic numbers. Yet, these figures aren’t the thing that should give you pause for thought. What should stop you in your tracks is that nobody really understands the workings of this complex system, let alone is in control of the resultant global economy. Most of the global trade is conducted in Eurodollars, which is money generated outside of any control of the US or the nexus of other countries' Central Banking/Government institutional structures. Eurodollars are not understood by the major actors involved in oversight or management roles affecting global economics. That is why nobody knows how to fix the issues with the global economy. It’s because nobody knows what money actually is. - - - - This episode’s sponsors:
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| 19 Oct 2022 | Science, Health and Bitcoin with Sam Abbassi | 01:11:51 | |
“That’s the one thing Bitcoin does really well is that it has these property rights that allow you to enforce the fact that you do own Bitcoin. And so that’s what I’m most focused on: building a great wrapper and experience around that.” Sam Abbassi is the founder and CEO of Hoseki. In this interview, we discuss the growing demand for proof of reserves. Whilst the use case for businesses is clear, there is also an increasing retail need: it enables individuals to use Bitcoin as collateral, but also validates financial credentials. It is another means for assimilating Bitcoin into the fiat-dominated world. - - - - The hodl mantra has been a vital behaviour within the Bitcoin community. It was emblematic of the transition from the current credit-based paradigm into a low-time preference mindset that reasserts storing of value. It has also been technically important in supporting the price. However, up until recently, hodling was akin to storing gold in a box or cash under a mattress. It was inward-looking. As Bitcoin matures and its volatility declines, the value that can be ascribed to an individual by their Bitcoin holding becomes more important and useful. For a growing cohort, Bitcoin’s utility requires an outward engagement with the fiat world. As society increasingly seeks to store value in Bitcoin, it is increasingly going to become some people’s main source of wealth. Therefore, reintegrating Bitcoin’s store of value into the arena of working capital is becoming more acceptable; there are growing opportunities to use that Bitcoin to access working capital for things such as mortgages and other loans requiring collateral. Bitcoin can also be used to support residency applications and other activities requiring validation of financial security. It is likely that the purposes for which we need to provide proof of our Bitcoin holdings is going to increase. However, without proof of property Bitcoin has no utility beyond its resale value. How does one prove to a third party proof of property in a still nascent digital asset? This is where Hoseki comes in. They are seeking to provide a much-needed service in the market to produce independent and trustworthy proof of Bitcoin reserves, opening up Bitcoin’s value. Being developed by Bitcoiners means that the basic principles of privacy and security are top of mind in terms of their product development. It also means they are in lockstep with the Bitcoin philosophy. - - - - This episode’s sponsors:
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| 21 Oct 2022 | Cathie Wood on Bitcoin | 01:08:57 | |
“My background is both economics and finance. So I feel very confident in what I’m saying: this is the first global private, meaning no government oversight, digital rules-based monetary system. When I’m explaining it like that I ask everyone to listen to each of those words, each one of them is very important. This is one of the most profound innovations of our time.” Cathie Wood is the founder, CEO and CIO of Ark Invest. In this interview, we discuss investing in disruptive technologies, the importance of research for investment, deflationary signals, uncertainty in the Fed’s decision-making, and Ark’s continued bullish outlook for Bitcoin. - - - - Back in 2015, Cathie Wood’s Ark Invest became the first public fund manager to invest in Bitcoin. This was a very early trade for an institutional basis, prior to some of the major news events that have led others to have followed Ark in recent years. But this is Ark’s business, identifying nascent technologies that could serve to be the basis for real societal change. Cathie Wood’s business strategy is to get into the detail of the markets they're interested in. This means research by informed analysts who can unpick the strengths, weaknesses, opportunities and threats for each specific industry. Any bullish statement they make is based on hard business data, not just an extrapolation of financial performance. The elephant in the room for Ark is that their Innovation ETF is down 75% from its highs in the early part of 2021. This has placed Ark and Cathie in the firing line of commentators. And for every negative article or tv piece, there will be a line of nervous investors seeking reassurance. This is when research pays off - it matters when you have a strong narrative to fall back on if you want to maintain investor confidence. So, when Ark makes statements about Bitcoin we should all take note, as they’re not in the market for unwarranted hyperbole. Well, they remain one of the biggest cheerleaders for Bitcoin within the institutional space. Ark followed up a bullish prediction for Bitcoin’s valuation at the beginning of this year by doubling down on their forecast a few weeks ago: they are expecting a $1 million per coin valuation in the coming years. In an interview with Bloomberg earlier this month, Ark stated Bitcoin is in “an arms race” against traditional finance and asset classes. Ark is confident of Bitcoin’s ability to be at the heart of a revolution in money given its multiple use cases. Seeing as their fund has tracked the performance of the S&P500 over the past few years, despite it being an extended and brutal bear market for tech stocks, you wouldn’t bet against them getting this call right. - - - - This episode’s sponsors:
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| 24 Oct 2022 | The White House is Wrong About Bitcoin Mining with Nic Carter | 01:25:09 | |
“My whole objective here was just to really meticulously go through their document and show that they don’t have a better command of the facts then we do, they’re relying on bad data, they’re relying on bad sources and academics, and they should do better.” Nic Carter is a Partner at Castle Island Ventures and co-founder and Chairman of Coin Metrics. In this interview, we discuss the White House bitcoin mining research paper, regulation and the role of renewables in the energy mix. - - - - In September, the White House Office of Science and Technology Policy (OSTP) published a study which looked into the climate impacts of bitcoin mining. The report successfully acknowledged the differences between PoS and PoW, the contribution of bitcoin mining to grid flexibility & demand response and the potential to unlock stranded renewables, but the rest of the report offers little, if any merit. Overall, the findings in this report were quite damning. The report relies on non-peer-reviewed and often totally flawed data from the likes of De Vries and Digiconomist and even cites the absurd 2018 Mora et al paper. As Nic says in his article, "The Mora reference is shocking. It's a bit like reading a scientific government report on the history of the moon landing and finding a reference to a conspiracy website claiming that the entire thing was faked." With papers like this from the White House, the New York Mining Moratorium Bill and general growing disdain for Bitcoin mining, the US risks giving up its headstart. It is the country with the most to lose, and as we saw when China banned mining, Bitcoin is totally agnostic, and by banning, or overregulating, America won't hurt bitcoin, only itself. "If you ban it, you empower your enemies, like Russia, Iran, Venezuela, and North Korea. If you embrace it, you directly hurt them, and give their citizens tools to free themselves from those oppressive regimes." - - - - This episode’s sponsors:
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| 26 Oct 2022 | How Cheap Credit Distorts Money with Joe Consorti | 01:25:09 | |
“The rates have been locked at 1, 2, or 3%...that’s completely distorted the way that people allocate capital; whether it’s human capital or it’s physical capital, they’ve gone ahead and done things specifically because the money is essentially free, rather than pursuing them because they’ll provide a real economic value.” Joe Consorti is a Market Analyst at The Bitcoin Layer. In this interview, we discuss Austrian economics, Credit Suisse & the risk of large scale defaults, price distortions and how Bitcoin fixes this. - - - - When faced with economic turmoil, central banks have a few tools they can turn to, one of which is interest rates. Since interest rates are the price to borrow money, and prices are emergent, manipulating rates is an intentional distortion analogous to fixing prices. Rates instead should be a factor of the supply and demand of credit, risk of default, and a reflection of opportunity cost. However, during the financial crisis in 2007/2008, the US federal reserve had little option but to step in and repeatedly cut rates. They did this in an attempt to prevent complete collapse and to restart the credit-seized economy. Rates went to basically zero (and even negative in some countries), and since 2008, we have been in an era of cheap credit. Now, we are potentially in the midst of another financial crisis. Countries across the globe are battling with inflation issues for a raft of reasons, including supply-side constraints, excessive money printing during covid, and war in Europe causing energy shortages. To battle this, central banks are raising rates in an attempt to regain control. So does cheap access to credit really boost the economy and stimulate growth, or has it prolonged an artificial bull market in equities, over-financialised assets, incentivised mal-investment, added to the growing wealth divide and played a key role in near double-digit inflation? - - - - This episode’s sponsors:
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| 28 Oct 2022 | The Philosophy of Money with Andrew Bailey | 02:34:54 | |
“Bitcoin isn’t like a new theory about what kinds of money are possible, it’s more like a bulldozer that says: you’re all wrong, you need more tools to think properly about money; here’s a totally new kind of money that is kind of like fiat, kind of like gold and kind of like neither.” Andrew Bailey is a philosopher, professor, fellow at the Bitcoin Policy Institute, and co-founder of Resistance Money. In this interview, we discuss the philosophy of money in respect of what it is, what makes good money, the traps we can fall into with money, and why Bitcoin is a bulldozer that makes us rethink money anew. - - - - Economists, historians, philosophers, bankers and politicians have all contended with the concept of money. What it is, what it can be, what it’s not, what it’s useful for, how it should be used, how it can be misused: there are a myriad of questions that have spurned a myriad of theories. Consensus has formed around different ideas lasting for generations, only to be followed by sudden shifts as perceived universal truths are dissolved. Debates and evolving thinking around money have always been a feature of its existence, certainly within modern capitalist structures of the past few hundred years. And yet, we do seem to be in a rare period. Firstly, we are entering a new paradigm of money, when established norms are suddenly being uprooted. Secondly, laypeople are joining the ranks of the so-called specialists in the debate around money. This change has been spurned by the failures of fiat money. Suddenly, people realise that the assumed solid ground is shifting beneath them. Within a short space of time, we have experienced a flurry of unprecedented events: bank runs, money printing on a vast scale, massive stimulus packages, huge volatility in the markets, systemic inflation, and currency collapses. The debate has also been spurned by the revolutionary innovation of Bitcoin. A totally new form of money has enabled a reevaluation of the principles and qualities of what we use to store value and what we use to exchange value. This process is being undertaken at all levels: if Bitcoin can continue to flourish, it will serve as a check on those in power. It could for the first time enable money to become pluralistic. All this means we are living in a time when the debate around money is live and fluid in which we all get a say. Buying Bitcoin, developing Bitcoin and orange pilling are all positive actions that force us to consider these fundamental questions. And, in this process, we’ll find we are asking the most fundamental questions of all - what is the essence of a good life and how does money help to achieve that end? - - - - This episode’s sponsors:
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| 31 Oct 2022 | How Capital Misallocation Warps Money with Steven Lubka | 01:19:53 | |
“If everyone uses a 12-inch ruler to build a house, and then one day, the government wakes up, and they change out all the rulers for an 11-inch ruler, but they don’t tell anybody…that distorts everything in the system because you’re using that as a measure, and the same thing happens with money.” Steven Lubka is Managing Director of Private Client Services at Swan Bitcoin. In this interview, we discuss how the misallocation of money by central banks distorts money, destroys capital, and creates zombie companies. Steven calls for money to be left to find its natural state within a free market. - - - - Society has become accustomed to the intervention of central banks in the economy. The underlying narrative is that central banks have the power to direct the economy through the manipulation of money. A principle level is through the control of interest rates: artificial adjustments to the cost of borrowing money aimed at promoting or tempering growth. You don’t have to be an economics expert though to know that central banks' interventions seem to have become excessive. We have had a decade of near-zero interest rates. In addition to this, central banks have heavily lent on money printing to maintain economic stability: one-fifth of all US dollars were printed in 2020 alone. These significant adjustments to the money supply set in train damaging second-order impacts. Given rising debt levels and recessionary forces, governments are seeking ways to stimulate growth. However, the economy has not been allowed to function normally for an extended period. We may therefore be in a position where significant businesses aren’t able to operate with a more natural cost of money. Many businesses have developed in a period where the cost of money has been artificially low. This has created zombie companies, which need support to survive. This leads to a cascading series of issues: such companies divert resources from more efficient enterprises, but they are destined to fail, which destroys capital. It effectively hollows out parts of the economy. The misallocation of capital is therefore counterproductive: short-term stability is a mirage that hides long-term systemic vulnerability. Steven Lubka’s thesis is that Bitcoin is the answer. It is a real tangible asset with a fixed monetary policy that enables price to be reflective of reality. The result is a market that can make rational decisions, build robust companies, and allow order to emerge In short, Bitcoin fixes the money. - - - - This episode’s sponsors:
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| 02 Nov 2022 | Censorship & State Capture with Nic Carter & Lane Rettig | 01:54:34 | |
“You could describe Proof of Stake in two words: shareholders vote. And guess what, that is how the world works already… I want to build a system that at least has the potential to be democratising, and move towards decentralisation, censorship resistance, these properties that we care so much about; and I think Proof of Stake is a huge step in the wrong direction.” Nic Carter is a Partner at Castle Island Ventures & Lane Rettig is a core developer for Spacemesh. In this interview, we discuss the Ethereum merge specifically addressing the issue around increasing censorship of Ethereum transactions, the chilling state attacks on privacy and what Bitcoiners could learn. - - - - In November 2013 Vitalik Buterin produced the Ethereum White Paper, which set out that Ethereum was to utilise the Proof of Work mechanism to facilitate participation in the transaction validation process. Eight months later, hidden away in the announcement about the Ether ICO, Vitalik stated that “We may choose later on to adopt alternative consensus strategies, such as hybrid proof of stake…”. Ethereum’s merge in the first 2 weeks of September has been the biggest event in crypto this year. Part of the reason is that it has been a very long time coming. Further, it has been a huge engineering challenge: transitioning from Proof of Work to Proof of Stake in a live blockchain for the second-largest digital currency. Many predicted that it would result in technical issues. They were wrong. The merge was a success. And yet, in the months that have followed, events have shown that just as Ethereum has sought to resolve some issues, it has caused others. Yes, Ethereum now uses significantly less energy, albeit a smaller drop in energy consumption than they would have many believe. But, evidence of a concerning concentration of staked ETH indicates that not only is the consensus becoming centralised, but it is becoming dominated by entities who are censoring transactions. The result is a very clear distinction between Bitcoin and Ethereum. The issue at hand for Bitcoiners is that the battle to win the argument with political decision-makers over the importance of Bitcoin’s energy usage is still yet to be won. But, more importantly, there are downstream centralisation and capture risks for Bitcoin. Forewarned is forearmed. - - - - This episode’s sponsors:
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| 04 Nov 2022 | Bitcoin Can’t Lose with Parker Lewis | 01:38:25 | |
“The only way for that system to subsist into the future is for them to print more and more money, and in either scenario, whether they print money or they don’t, the economic engine collapses.” Parker Lewis is Head of Business Development at Unchained Capital. In this interview, we discuss the failure of currencies, the collapse of the economic engine and Bitcoin being the largest tidal wave that's ever existed. - - - - In the nearly 14 years since Bitcoin was launched the global order has continued to shudder in the wake of a rolling set of crises. Front and centre is the unwinding of the global economic order. Fiat currencies are straining, inflation is rising, and central banks are using ever more extreme and counter-productive measures to keep the economy afloat. We’re in the final throes of the long-term debt cycle. Everyone can see it. And yet governments and central banks are refusing to accept the inevitable. Money printing continues, in part to deal with the second-order effects of the previous round of money printing. Bitcoin rose sharply at the beginning of this period, but it has stalled in the shadow of Covid as the world struggles to repair economies whilst dealing with growing geopolitical tensions. Throughout this turmoil, as Parker Lewis states in our interview, Bitcoin’s value proposition has remained the same. Why is it then that Bitcoin has been in a bear market? The protocol has proven itself to be a solid basis for a new form of money. Yet, its volatility in the wake of rising inflation has resulted in a wave of commentators dismissing its value. This has an effect. We all know people who still think Bitcoin is a crazy fad. This issue, as Parker Lewis contends, is that you need to do the work to understand Bitcoin’s vital importance. Bitcoin adoption is a function of knowledge distribution. Those of us who are in the know must therefore keep spreading the word, educating, advocating, orange pilling. If we do that then Bitcoin can’t lose. - - - - This episode’s sponsors:
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| 07 Nov 2022 | The Fundamentals of Bitcoin’s Value with Phil Geiger | 01:27:54 | |
“Society is formed through humans cooperating and… the whole is greater than the sum of the parts; when people get together and collaborate and cooperate, we produce something that is way more impressive and better than any single individual can produce.” Phil Geiger is the Managing Director of Concierge Services at Unchained Capital. In this interview, we discuss how a robust protocol and monetary policy, a vital utility for energy producers and a committed community of hodlers, makes Bitcoin an extremely low-risk investment. - - - - No other scalable commodity, currency or asset has as robust a fixed supply issuance as Bitcoin. 21 million coins. That’s it. The rough consensus governance process, miners’ financial incentives, and a highly decentralized node verification process combine to make this digital scarcity rigid. No altcoin can compete. “Digital scarcity is a one-time phenomenon” - Phil Geiger, April 2020. There are those that have been pushing the edges of this assumed commitment. They are motivated by different concerns, chiefly that a declining supply will impact security: how can a 51% attack be avoided when the volume of Bitcoin issued becomes significantly low and eventually finishes? Can transaction fees alone secure the network? But it is the fixed supply schedule that supports Bitcoin’s value, from which all other considerations follow. According to Phil Geiger, these 21 million coins already exist. Both in terms of the supply schedule and the fixed limit. This is what underpins the huge investment by miners: a transparent monetary policy, and scarcity that supports the price. Changes to this could seriously damage minings assimilation into energy production. This is what makes, in Phil’s view, Bitcoin an extremely low-risk investment compared to other assets (both digital and physical). The proof is in the hodling behaviour. Using Bitcoin is vital for the transition of Bitcoin from a defensive store of value to a productive medium of exchange, the fact that those hodling Bitcoin for more than a year is at an ATH shows investors still remain extremely confident in its long-term success. So, what about long-term security? Decreasing block rewards will incentivise miners to maximise the use of block space. Combined with more users this should drive up Bitcoin transaction prices, thereby supporting the transition to a post-block reward world. The issue is whether there are enough incentives to ensure miners don’t game the system. This needs to be debated. But, making Bitcoin inflationary isn’t the answer, because this is the essence of Bitcoin. - - - - This episode’s sponsors:
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| 09 Nov 2022 | Why Won’t the SEC Approve a Bitcoin ETF? With Perianne Boring | 01:43:30 | |
“I think these policy fights for Bitcoin, this is the fight of my generation; and I think it’s absolutely important that we as Bitcoiners, and people who care about this technology, understand these political fights, these legal fights because if we get the policy wrong, it can totally skew our future.” Perianne Boring is the Founder and CEO of the Chamber of Digital Commerce. In this interview, we discuss the history of Bitcoin spot ETF proposals, the numerous rejections and changing conditions for approval, and why the SEC won’t approve a Bitcoin spot ETF. - - - - The first application for a Bitcoin spot ETF in the US was made by the Winklevoss brothers back in 2013. The SEC rejected this proposal in 2017. Since then the SEC has rejected applications from at least 16 different companies, some of whom have made multiple applications. The last rejection was in early October. It’s not that the SEC dislikes ETFs. There are over 2,500 ETFs in the US market with over $7.2 trillion AUM. Further, there is also strong demand in the market: over 99% of the 11,400 letters sent to the SEC in relation to Grayscale’s ETC application were in support. In the meantime, Bitcoin spot ETFs are being approved across the world, most notably across the border in Canada. The Chamber of Digital Commerce, the blockchain trade association, has assessed the history of Bitcoin spot ETF applications accounted for in a report. This outlines major inconsistencies in the way the SEC treats applications: denials have conditions applied for subsequent applications; these conditions are met, the new applications are denied; rinse and repeat. In addition, in 2021 the SEC approved the first US Bitcoin futures ETF. Whilst the performance of the Bitcoin futures ETF has tracked the Bitcoin price reasonably closely, futures markets are by their very nature volatile as futures contracts can be unpredictable. So, it is potentially a less safe vehicle for investment. The obvious question is, therefore: why won’t the SEC approve a Bitcoin spot ETF? Perianne Boring, the CEO of the Chamber of Digital Commerce, is of the opinion the decision is political in nature. There is a wave of money waiting to invest in such an ETF, which would accelerate the adoption of Bitcoin. This is something many decision-makers are resistant to. What’s clear is that with Grayscale suing the SEC the issue is coming to a head. - - - - This episode’s sponsors:
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| 12 Nov 2022 | The Lightning Energy Market with Austin Mitchell | 00:55:50 | |
“Imagine the Lightning Network being very similar to the energy system itself and how it moves money, where every physical node now has its own node in the Lightning Network. And when energy moves in one direction, money moves in the other, basically what we’re creating is a system where money can move as fast as energy.” Austin Mitchell is the Co-Founder and CEO of Synota. In this interview, we discuss his plan to use the Lightning Network to settle transactions in the energy industry, and how this should bring greater equality to the energy market whilst also enabling the whole energy economy to move to the Lightning Network. - - - - Bitcoin is prospectively the best version of money, worldwide instant payments rail, market-based accelerant for energy production, and energy grid stabiliser. It’s infuriating that more people aren’t waking up to its potential. Perhaps it’s the FUD, the passive damage caused by dysfunction in the crypto industry, or the ignorance of there being bitcoin the money and Bitcoin the network. But Bitcoin’s story is still being written; as many keep saying - it’s still early. We all know that there are nascent layer 2 innovations that are taking Bitcoin in new directions. But even hardened advocates continue to be amazed at the use cases being developed using Bitcoin’s various characteristics. Take the Lightning Network: the game-changing payment protocol. It is the layer that enables Bitcoin to scale. But what does that actually mean? Well, quite a lot. Bitcoin is fast becoming an integral part of the energy industry. In addition to the known functions comes a new one: the Lightning Network’s instant settlement facility and distributed payment network is set to transform energy finance. The current system is predicated on old analogue payment processes, full of inefficiencies that unnecessarily bloat costs for producers and consumers. The prize is a real-time payment system that simplifies energy finance whilst enabling greater functionality. It could make the market more flexible, dynamic and equitable. The result could be that it draws the whole energy economy onto the Lightning Network. It’s a lightbulb moment given how big that industry is: $4.5 trillion is spent on energy a year. There are additional services that could be included. The lightbulb fuses when you think about what other industries could find similar utility. The lightbulb explodes when you remember Lightning is just one of many layer 2 innovations. We’re still so very very early. - - - - This episode’s sponsors:
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| 14 Nov 2022 | Unpacking the FTX Fraud with Lyn Alden | 01:12:21 | |
“We appear to have actual fraud, various types of fraud, essentially a Ponzi scheme, and that’s different from even just a normal casino… you can have a crypto casino, and it just makes money from fees, and most traders get rekt; but this is like a casino built on top of a Ponzi.” Lyn Alden is a macroeconomist and investment strategist. In this interview we discuss rampant fraud that led to the FTX bankruptcy, the implications for other businesses and legal precedent, and Lyn’s current outlook on markets. - - - - FTX’s empire at the beginning of this year was valued at $32 billion. The whole facade has become a bankrupt mess in a little over a week. Every hour of the past 7 days has seen a new claim of malfeasance that exceeds the depravity of the last. This crescendo has seemingly peaked today as SBF posted cryptic tweets suggesting he’s struggling to comprehend what has happened. Sam Bankman-Fried was lauded as a financial genius and social revolutionary leading the ‘effective altruism’ movement. He was on the front cover of Forbes in October 2021. A glowing Bloomberg profile in April this year recounted his interactions with prominent politicians, investors and celebrities. He openly discussed having his attention drawn to dealing with existential issues affecting humanity. SBF had former Presidents and Prime Ministers in his palm. However, Bankman-Fried was a Svengali and a fraud. Some Bitcoin maxi’s tried to sound the alarm, but too many people ignored the warning signs and believed the hype. In just 3 short years the 30-year-old managed to beguile not just the industry but also traditional finance. He got a $100 investment from a Canadian pension fund, which one would assume would lead the world in discharging fiduciary duties. In the aftermath, it all seems so obvious. FTX was essentially run by dysfunctional kids. So, how did this happen? It’s still very early, and revelations keep dropping as we speak. The truth behind what occurred will take years to piece together. Nevertheless, there are some important lessons that the Bitcoin community rapidly needs to discern and absorb. A political response is inevitable, and many will try to ensnare Bitcoin in this mess. - - - - This episode’s sponsors:
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| 16 Nov 2022 | Bitcoin is the Answer with Preston Pysh | 01:14:43 | |
“When you look at prices as they’re trying to destroy demand, the thing that people aren’t talking about is are they destroying supply faster; and if they are, prices aren’t coming down, they might actually keep going up.” Preston Pysh is a co-founder of The Investor Podcast Network. In this interview, we discuss the ongoing trauma following FTX’s unprecedented fall from grace, the implications for Bitcoin, and the ever-worsening macro situation where central banks are losing the battle to protect society from excessive government spending. - - - - The FTX drama is still being played out, and it will continue to do so for the weeks, months and years ahead. It feels as though we’re still in the shock stage, trying to wrap our heads around not only what happened, but how such a seemingly fragile situation was allowed to get so out of control. Fingers are being pointed, defences prepared, and, even whilst we’re still very early in this process, histories are already being rewritten. And yet, the broader economic picture remains the same: a conveyer belt of crises continue to buffet the global economy. Stagnation, growing inflation, mountainous debt, extreme stress in the bond markets, globalisation, and currencies under strain; there is a wall of mounting issues that are building into what seems to be an existential situation for the fiat system. The fundamental issue at hand is that nobody can tell what is up or down in relation to our economy. Price and value have been artificially inflated that they lack any purposeful meaning. Cheap money has enabled massive consolidation making the business environment top-heavy. And inflation has directed citizens to engage in rampant consumption, which results in a myriad of adverse downstream consequences. Both situations, i.e. the imploding of cryptocurrency and the mess of the global economy, have the same mitigation. Reaffirmation of the Bitcoin ideology will enable those with true convictions to begin repairing the damage caused by FTX. Bitcoin will also help the economies to align with reality, thereby facilitating better decisions. Whilst Bitcoin doesn’t necessarily fix everything, it is the path to creating a better world. - - - - This episode’s sponsors:
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| 18 Nov 2022 | QE Infinity with James Lavish & Greg Foss | 01:37:28 | |
“There are five institutions that control $30 trillion of assets in this world. You’ve got Fidelity Vanguard, BlackRock, State Street, and UBS, that control $30 trillion. So when they get in, and they actually put it in their portfolios, it becomes a no-brainer for other asset managers to do it as well.” James Lavish is a Bitcoin advocate and writer, & Greg Foss is a Bitcoin strategist, and they’re both co-founders of Looking Glass education. In this interview, we discuss FTXs lack of checks and balances, how fiat is struggling to find yield, zombie countries and the the debt spiral, and how Bitcoin is the best asymmetric bet of our lifetime. - - - - We live in strange times. Central bankers tell us up is down. Politicians peddle myths. And the seeming robustness of capital, institutions and the state is turning out to be a facade. And yet, the economic machine needs to keep running. Finance needs to generate a return. In this environment, where the economy has turned from being an engine of sound principles into a casino, it’s no wonder charlatans like SBF can turn into powerful entities in the blink of an eye. Checks and balances are empty words spoken by people in suits in meetings. A lack of resources, a revolving door, well-financed lobbying, and sheer complexity have all but neutered any meaningful oversight of crypto. On the ground, the reality is bluff and bluster are as effective as following the law. Perhaps such tactics are more effective: after all, FTX nearly achieved regulatory capture. What is the fundamental issue? Arguably it is that the whole framework of state-organised economic control is falling apart. The impacts are manifold. Price and value have no real meaning. Reasonable returns on investment are evaporating. Financial opportunities are being drowned by risk. The real concern is that confidence is rapidly ebbing away. The fiat economy is fundamentally a confidence engine. Trust has replaced hard assets. When trust goes nothing is left. We now live in a world where disillusioned experts are telling us the game is up. State debt is unmanageable, and governments have no obvious solutions. This is why many such people are turning their attention to Bitcoin. When we’re facing QE infinity by zombie countries it is wise to go back to first principals: sound money. - - - - This episode’s sponsors:
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| 21 Nov 2022 | The FTX Contagion with Jesse Powell | 01:37:28 | |
“I think we can’t lose sight of what we’re really fighting for here, which is all of those people to be included in the financial system, financial privacy, the separation of money and state; these things are way bigger than any centralised exchange.” Jesse Powell is the co-founder and Chairman of Kraken. In this interview, we discuss the rising anger over the FTX collapse, parallels with Mt. Gox, FTX’s exploitation of regulatory arbitrage, odd mainstream media reactions, proof of reserves and the future of custodial services. - - - - FTX has caused untold damage. There could be over 1 million creditors, from large institutions to small retail investors. There are going to be numerous heartbreaking stories of people getting rekt. But, the most significant damage caused by this criminality could be ahead of us. There is a significant risk that a misreading of the causes of this crisis will lead to regulatory damage removing access to Satoshi’s innovation for future generations. There are many within the industry who were deeply sceptical of FTX and Sam-Bankman-Fried well before the event of the past few weeks played out. The pace of growth, the scale of revenue, and the huge expenditure. To those in the know, none of it made sense unless FTX was involved in nefarious activities. And yet, SBF was rubbing shoulders with DC politicians whilst shaping the laws to be applied to the industry. In short order, the whole facade has come crumbling down. Stories of drug taking, polyamory, and excess within the criminal empire have emerged, confessions have been made that the effective altruism promotion was a sham, and then SBF engaged in a bizarre media campaign via Twitter. FTX’s new CEO brought in to organise its bankruptcy process stated in his 40 years of restructuring companies (including Enron) he’s never seen anything as bad as this. So, in the face of this obvious narcissistic and incompetent criminality, why have there been a number of puff pieces in the media? Why did DC take the warnings that were made seriously? And how is it justified for politicians to threaten a sweeping global legal framework for Bitcoin and crypto? Strange things are happening, and forces are being aligned against all of us. And yet, we know the community is resilient. This could take years to play out. - - - - This episode’s sponsors:
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| 23 Nov 2022 | Finding Bitcoin Signal with Jeff Booth | 01:29:11 | |
“Theft in money will divide us all, and that theft in money will take us likely to war and maybe the end of human species… or it will concentrate all control in very few super overlords. And the rest of us, it’ll look like modern day slavery, it’ll look like China’s social credit system on steroids.” Jeff Booth is the Author of The Price of Tomorrow and CEO/Chairman of Ego Death Capital. In this interview, we discuss how Bitcoin fundamentals (such as its approach to the blockchain trilemma, centring on truth, and its deflationary effects) run counter to current economic theories, making Bitcoin’s signal harder for some to find. - - - - A common refrain whilst we live through unprecedented global economic turmoil and massive failures within DeFi is “why aren’t people flocking to Bitcoin”. Obviously, Bitcoin’s signal is being lost: the fundamentals that are designed to better protect people against incompetent, corrupt and fraudulent behaviour aren’t readily apparent to many. Why is this? As Jeff Booth asserted in a recent article: “protocols create value in the form of a new foundation that emerges slowly & methodically”. However, capitalist societies have been conditioned to accept and expect rapid change: ‘work fast and break things’ has been taken as a given. Systems that run counter to this are viewed as being ripe for disruption. Bitcoin has widely been seen as slow. It’s development was famously the subject of a crisis centred on scaling arguments. The outcome was an affirmation of some core principles: Bitcoin would be predicated on decentralization and security. This spurned a tsunami of altcoins that proliferated on the pitch that they improved on Bitcoin by being able to scale. This meant many dismissed it. Bitcoin was old tech. But, as we have seen over the past few months, speed and scale come at a cost. A real-world cost counted in billions of dollars. The blockchain trilemma means that scale means making material tradeoffs in terms of decentralization and security. The result: hacks and fraud. If there is any silver lining to the FTX collapse is that the conflation of crypto and Bitcoin now has more than a theoretical critique. The importance of making the case for Bitcoin, of amplifying the signal, is that it offers a transition to a new system where we can benefit from deflation. A system that protects people. A system based on a layer of truth. - - - - This episode’s sponsors:
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| 25 Nov 2022 | Bitcoin Mining in Distress with Nick Hansen | 01:27:11 | |
“This time last year, most profitable time to mine ever in Bitcoin; people shovelling money in as quickly as they can. Less than 12 months later, it’s the least profitable time to mine ever. It’s very difficult to make massive strategic pivots in that amount of time.” Nick Hansen is the CEO of Bitcoin mining software firm Luxor Technologies. In this interview, we discuss the distress within the Bitcoin mining industry caused by a perfect storm of leverage, stagnant value, huge growth in capacity, energy price shocks and wider headwinds affecting investment. This could become a national security issue. - - - - Exactly one year ago, US Bitcoin mining companies were posting record quarterly profits. A huge amount of investment followed China’s mining ban making North America the centre of global Bitcoin mining. It spurred the development of mega miners: companies developing industrial-scale operations. These companies started building out new sources of energy and developing unique relationships with grid operators. And Bitcoin’s price was at an ATH. Roll on one year, and the industry is facing a potential crisis. Bitcoin price is at 2-year lows, the hash rate is at an all-time high, investment is drying up due to a range of issues, rig prices have tanked, whilst a swath of companies are struggling to manage debt obligations. Add to this the wider fallout as a result of the FTX collapse. It really is a perfect storm. At the same time, companies are being buffeted by widespread disinformation, and polarised attacks predicated on energy usage concerns. Regulators seeking to acquiesce to those promoting FUD, have considered, recommended, and brought forward poorly designed rules. See the NY moratorium on PoW mining using fossil fuels just passed into law. This is more than a parochial issue for the Bitcoin community. Bitcoin mining provides an unprecedented opportunity for wider society. It’s the basis for an alternative to a broken economic system and the means with which to incentivise and support the energy transition at scale. It is the industry to help the US navigate a host of strategic problems. Bitcoin mining is, fundamentally, a national security issue. Its protection should be our primary focus. - - - - This episode’s sponsors:
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| 28 Nov 2022 | The Fight for Bitcoin with Cory Klippsten | 01:10:53 | |
“This is something that I heard from all the crypto funds back in 2017/2018…you can promise any blockchain crypto magic that you want, it can solve whatever problem you say it’s going to solve; and there’s no truth in advertising, no securities laws, no nothing governing the space, so it’s just literally the best magic scam machine in financial markets’ history.” Cory Klippsten is the founder and CEO of Swan Bitcoin. In this interview, we discuss the exploitation of retail markets by crypto VCs. Cory called out many of the crypto ventures that have recently collapsed, but he saves his biggest criticism for the firm that is still active within the industry: a16z. - - - - Cory Klippsten has a scent for malfeasance within the crypto industry. He explains this by the fact he doesn’t listen to what people say, he tracks their actions and determines motivations. This has enabled him to identify ahead of time some of the most notable scams that have unravelled this year. Cory called out FTX in April this year, Luna in March, and Celsius in Dec 2020. Yet, there is another VC company that has risen within the crypto industry that has in recent years been the subject of much discussion and criticism. Andreessen Horowitz (it’s also referred to as a16z), founded in 2009, quickly rose to become one of the most influential investors in Silicon Valley after a series of incredibly lucrative stakes in companies such as Skype, Facebook, Twitter, and Airbnb. In 2013, a16z started investing in crypto, most notably with Coinbase and Ripple. In 2018 they made a concerted effort to focus on crypto as a vertical: they started by raising $300m for the first of a number of dedicated crypto funds, and from 2021 they started to lead fundraising rounds for various altcoins and crypto ventures. Many within the industry saw them as serious and reputable players. Until patterns started to emerge. The issue is, as Cory highlighted in a recent Twitter thread, a16z have been involved in promoting numerous tokenised projects that have all had the same price pattern: early hype resulting in a massive short-term increase in the value, followed by an equally rapid fall in value and then stagnation. The pattern appears to resemble classic ”pump and dump”, followed by “rinse and repeat.” Critics have long complained that such VC companies have been able to “create their own weather”, exploiting a regulatory void to monetise off the back of their own hyped narratives that appear to lack credibility. A former analyst for the company actually referred to a16z as a “media company that monetizes through VC.” But many observers, including Cory, are now calling them out. The pressure is certainly building for more attention to be paid to a16z’s activities. - - - - This episode’s sponsors:
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| 30 Nov 2022 | How the IMF & World Bank Exploit Poor Countries with Alex Gladstein | 01:37:36 | |
“You talk about the CIA and American foreign policy during the Cold War…that’s like level one. We’re on a second level here, the IMF and World Bank are operating on a meta-level, like we’re above Cold War politics, we’re at the level of timeless, strong countries abusing poor countries; this is way beyond the Cold War.” Alex Gladstein is Chief Strategy Officer at the Human Rights Foundation. In this interview, we discuss the IMF and World Bank - two powerful multinational institutions that have shaped the post-war world for developed nations' benefit. Alex uncovers the exploitation hidden from view and the ongoing real-world costs for the developing world. - - - - The IMF and World Bank are two major multinational institutions that have perhaps shaped the workings of the global economy more than any other. The issue is that, over the course of the past few decades, the IMF’s and World Bank’s roles and impacts have largely been forgotten. Whilst casual observers are distrustful of the IMF and World Bank, in the main, people’s concern is vague, lacking facts or evidence. It’s hard to know why this is, but it’s worth noting that internally produced IMF and World Bank content dominates google search results at the expense of independent content. And yet, the impact of the IMF and World Bank has been catastrophic for many developing nations. Specifically, it has been problematic for those outside the gilded circles of power in such countries who have had to carry the burden of debt through significant assaults on public services, food security and other fundamental quality-of-life provisions. The reason? Neocolonialism. Extraction of resources from the periphery for the benefit of the centre. Indebtedness has been the tool used. A Ponzi scheme of debt relief to support debt servicing, designed to keep countries subservient to those controlling the IMF and World Bank. The cost is dictatorships, corruption, environmental degradation, and the destruction of potentially millions of lives. It is uncertain whether Bitcoin can fix this. But, it acts as a powerful disincentive and disruption by weakening the exorbitant privilege of the dollar and enabling the innocent people subjugated by the IMF and World Bank and their own elites, an opportunity to opt-out of this system. Our role within Bitcoin is to discuss this history and help free those still bound by its constraints. - - - - This episode’s sponsors:
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| 02 Dec 2022 | Can Bitcoin Bridge the Political Divide? With Ted Cruz | 00:40:24 | |
“I am an enthusiastic fan of Bitcoin and I want to say to everyone here thank you for what you’re doing to drive the Texas economy, to drive the American economy, to modernise energy, to strengthen resiliency of the grid, to enhance economic freedom.” Ted Cruz is a serving US Senator for Texas. In this interview, we discuss the importance of Bitcoin for Texas and the United States, communicating the threat of CBDCs, the political and regulatory challenges, and Bitcoin’s symbiotic relationship with energy. - - - - Ted Cruz is one of the most consequential politicians of his generation. He is a strong advocate for liberty and the tools that support freedom within society. It is perhaps no surprise that he is therefore a fan of Bitcoin. But equally, it shows strength and courage as many of those in positions of power still cast aspersions about Bitcoin and its associated community. Yet, as with all firebrand politicians, Ted Cruz divides opinions. He is uncompromising in his approach to certain issues. He is also part of the modern political game whereby the opposition is deemed to be the enemy. There is an obvious political incentive to adopt such characteristics in terms of being able to clearly delineate your position where there is significant competition for attention. There are certainly strong critics of Bitcoin within the Democratic party. However, Bitcoin can not be allowed to become a political football. It is still a nascent technology, and its development in the US could still be derailed by damaging regulation. It is imperative therefore that those who back Bitcoin on both sides of the aisle not only work together, but they are seen to be working together (e.g. Lummis and Gillibrand). Ted Cruz acknowledges this. He knows that his voice has a limited reach within more progressive circles. He needs those who would otherwise be antithetical to his politics to join him, and vice versa, to ensure this technology and its community is not driven out of the US. The basis of the reasoning is sound: it is freedom money that has a symbiotic relationship with energy. Let’s work to ensure politicians can see the issues anew by discarding the broken lens of politics. - - - - This episode’s sponsors:
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| 05 Dec 2022 | A Climate Change Debate with Nate Harmon and Steve Barbour | 02:28:55 | |
“We can’t just let these people die…I came up with the best plan that I could possibly do and that’s to bring them as much energy as possible in the least damaging way because if you have unlimited energy you can solve unlimited problems.” Nate Harmon is CEO and cofounder of OceanBit; Steve Barbour is CEO and founder of Upstream Data; both are Bitcoiners. In this interview, we debate climate change: the reliability of climate models, climate change mitigation, adaptation and the forecast inequality of climate change impacts. - - - - What Bitcoin Did has discussed both sides of the climate change debate with a number of esteemed guests. The reasoning is two-fold: firstly, one of Bitcoin’s major attack vectors is energy use and associated climate change impacts; secondly, it is one of the major issues of our time, arguably the most pressing issue. These shows have either expressed one side or another, until now. Bitcoiners are a broad church. That is an inherent strength. But is also brings its own internal pressures. Whilst there is broad consensus on Bitcoin’s mission, there are divergent opinions on a host of other issues that this new form of money affects. None more so than climate change. Many believe in the need for fossil fuels to enable humans to continue to flourish; others argue that we need to rapidly pivot from fossil fuel reliance if we’re to avoid an existential crisis. However, the debate is not open-ended. There is a strong argument that the framing of the current discussion falls within agreed boundaries. It doesn’t feel contentious to state both sides of the debate within the Bitcoin community agree that abundant energy is needed and that the climate is warming. The disagreement is focused on the rate of climate change and the approach to mitigation. Obviously, whilst there is agreement that narrows the parameters of any debate, the outstanding issues are complex, contentious and critical. The stakes on both sides are high; discussion and compromise are vital. Can we within the community find common ground? Is it possible to attenuate the growing animosity around this subject? Can Bitcoiners lead the way in being open-minded, receptive and malleable to different ideas? Let’s start engaging and find out. - - - - This episode’s sponsors:
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| 07 Dec 2022 | Fighting the Bitcoin Mining FUD with Troy Cross | 02:23:34 | |
“The story I want to be true about mining is that it strengthens grids, it lowers electrical rates for citizens for ordinary ratepayers, and it helps us green the grid, helps us mitigate methane…those stories were wrong during the bull run because everybody’s just plugging in, now those stories are coming true.” Troy Cross is a Professor of Philosopher and Fellow at the Bitcoin Policy Institute. In this interview, we discuss the changing narrative around Bitcoin mining: is it finding its real utility in a bear market as the ultimate auxiliary tool, and how early are we in discovering its range of uses as a tool? - - - - The trajectory of Bitcoin mining’s narrative has been breathtaking. Over the last year, it has gone from being singularly promoted for its principal role in securing the Bitcoin network, to having a whole host of other uses identified and championed: subsidising stranded energy, stabilising energy grids, mitigating methane emissions, and providing heat for a range of activities. Policymakers are struggling to keep up. The tired old FUD of Bitcoin’s energy use and carbon footprint are still being used as attack vectors by supposed reputable institutions such as the ECB. It also feeds into the narratives picked up by policymakers such as the White House, who’s commissioned report on Bitcoin mining’s climate impacts was affected by mainstream ignorance. But, the White House report also included recognition of some of Bitcoin mining’s emerging benefits, as well as correcting some misrepresentations of its impacts. This shows that, whilst we are far from getting widespread acceptance of the importance of Bitcoin mining, the effort spent on education and advocacy by the Bitcoin community is having a vital real-world impact. Promoting Bitcoin mining’s evolving narrative is critical. This is because we’re on the cusp of some far-reaching regulation in the wake of recent crypto scams. Regulators could see this as an opportunity to constrain Bitcoin mining; politicians never let a good crisis go to waste. Yet, we are still early in understanding the scope of Bitcoin mining’s value. New uses are being researched and developed all the time: OTEC, water desalination and carbon capture are recent examples. Bitcoin mining is emerging as perhaps an engineer's ultimate auxiliary tool. The mission is therefore to not only continue to convey Bitcoin mining’s importance, but provide the widest possible frame for its significance. - - - - This episode’s sponsors:
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| 09 Dec 2022 | Bitcoin is a Pioneer Species with Brandon Quittem | 01:46:12 | |
“Bitcoin mining is everything you don’t understand about energy, combined with everything you don’t understand about Bitcoin.” Brandon Quittem is a writer and Communications Director for Swan Bitcoin. In this interview, we discuss his latest article: ‘Bitcoin is a Pioneer Species’, where he compares Bitcoin miners to species that settle and populate barren landscapes triggering the development of more advanced ecosystems. - - - - The acceptance of Bitcoin is an acceptance of the need for continuous education and receptivity. This past year has shown why: Bitcoin mining has been transformed from being a critical but specific cog in the often misunderstood Proof of Work protocol to a tool with the potential to transform the global energy industry. Nobody foresaw this. Going down the rabbit hole now involves gaining knowledge of energy systems: production methods, grids, distribution networks, batteries, energy economics etc. This knowledge is both a blessing and a curse. A blessing in that the veil of ignorance is lifted on this vital industry showing politicians are driving blind with their policy decisions. A curse in that those sceptical that Bitcoin can change finance, are now incredulous when we state it can transform energy too. But the logic is clear. Bitcoin can harness electrical energy anywhere in the world. In doing so it can facilitate and thereby fast-track the build-out of energy in isolated environments, becoming a bridge for costly downstream investment needed to connect such sources to a grid. All of this without any need for a state subsidy, or international coordination. Bitcoin can therefore revitalise existing populations: currently, a billion people don’t have access to electricity. Imagine what benefits could be brought by integrating these people into the digital economy. Bitcoin mining can also be the pioneer species for previously uninhabited areas of the planet. It can take barren areas and provide the economic basis from which further development can grow. Contemplating that should make it clear: we’re still so very early! - - - - This episode’s sponsors:
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| 12 Dec 2022 | Bitcoin - Enemy of the State with BTC Sessions | 01:18:00 | |
“He messaged me, and he said: ‘Hey, man, I’m on a backup phone, just so you know, police just raided my house and they literally took everything. I just wanted to give you a heads-up.’ And I’m thinking: is that about to happen to me?” BTC Sessions (Ben Perrin), is a Canadian Bitcoin educator with a well-known YouTube channel. In this interview, we discuss his experiences as part of a group of Bitcoiners organising Bitcoin funds for Canadian truckers being targeted by the Canadian government. - - - - In January, a large group of Canadian truckers took part in convoys to protest against their government's Covid vaccination mandates for cross-border movements. The protests grew and the convoys converged on Canada’s capital city of Ottawa. Thousands of trucks and protestors blocked the streets. It divided opinion: some Ottawans called for Government action, whilst the protest inspired copycat activities and prominent support in other countries. The Canadian government reacted with some of the most draconian responses to activism seen in any democracy. On February 14th they invoked the Emergencies Act designed to provide legal cover for government actions required in major national emergencies such as war, invasion or insurrection. It was only the 2nd time such actions had been used in peacetime. Attention was focused on the funding sources, with dozens of bank accounts linked to the protest movements being frozen. As a result, a Bitcoin fundraising initiative suddenly took centre stage as the vehicle for getting funds of any description to the truckers. This Bitcoin funding and the associated group managing it then became a target for the Canadian authorities. Ben takes us through what was a rapidly evolving and extremely stressful situation, where a group of well-meaning Bitcoiners found themselves becoming enemies of the state. Did Bitcoin stand up to scrutiny? Bitcoin did provide truckers with a financial lifeline. And, whilst there were issues that occurred, there are some very important caveats. The initial set-up of the Bitcoin fund wasn’t with a view to it being the primary source of finance. Further, nobody expected the unprecedented actions taken by the Canadian government. Nevertheless, invaluable lessons have been learned. There is a clear view of the processes required to protect funds and those involved. More importantly, activists now know what actions the state, any state, is prepared to take. - - - - This episode’s sponsors:
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| 14 Dec 2022 | The Creep of Marxism with Mark Moss | 02:15:45 | |
“If you look at the long-term secular trend, there’s been three trends: one has been globalisation; so we’ve increased peace, we’ve increased global trade. Two, we’ve increased the population. And three, we’ve increased the money supply…and all three are reversing.” Mark Moss is a serial entrepreneur, author, speaker and host of The Mark Moss Show. In this interview, we discuss his recent co-authored book “The UnCommunist Manifesto”, which is a critique of Communist theory in response to its continued influence in our modern world. - - - - The Communist Manifesto was one of the most influential political writings in modern history. It was written by the 19th-century philosophers, historians and political theorists Karl Marx and Friedrich Engels. Despite falling into obscurity for a generation after its initial publication in 1848, it went on to provide a theoretical basis for one of the 20th century's most pervasive ideologies. The Soviet Communist Empire the Manifesto inspired ultimately failed. Proponents have argued that the Soviet political and economic system was not the same form of communism proposed by Marx and Engels. Many others have indicated that the fall of the USSR and its vassal countries showed the inherent fallacy of centralised control being the optimum political system. It wasn’t merely that communism failed, but the brutal nature of the system it inspired. There is a debate about whether the quantum of deaths under communist regimes could be referred to as genocide. Semantics aside, tens of millions of people have been killed in Communist countries. Further, it discouraged innovation whilst encouraging waste, corruption and nepotism. Boris Yeltsin acknowledged the Soviet issue when he made an impromptu visit to a US supermarket during a state visit. “There would be a revolution" he stated when contemplating how normal Russians would react to seeing the range and quality of produce. And yet, despite the epic collapse of the USSR, young people are increasingly being drawn to socialist ideas that underpin the Manifesto. Does a review of the Communist Manifesto provide adequate insight into the system it inspired? Can we identify the dangerous tenets of a communist system to better protect society? Is there anything theoretically sound in the Manifesto? Ultimately, do the transparent weaknesses of our current system give rise to society underestimating the weaknesses of competing systems? - - - - This episode’s sponsors:
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| 16 Dec 2022 | The Reformed Libertarian with Mike Brock | 01:42:58 | |
“It’s just impossible for me to believe that there’s this set of perfect rules, that if you follow them you will achieve this moral maxima and we will get closer to utopia.” Mike Brock is the lead at TBD, the Bitcoin-focused subsidiary of Block. In this interview, we discuss being a post-libertarian, reconciling the best elements of libertarianism with support for liberal democracy, and how Bitcoin improves the incentive structures within governing institutions. - - - - The persuasiveness of libertarian ideology is incredibly effective: the idea of individual liberty is both a simple and powerful message in a world where such freedoms are seemingly under perpetual attack. In the 20th century, the basis of modern libertarian thinking was provided by people such Ayn Rand. In recent years libertarianism has witnessed a resurgence and invigoration in the wake of the Iraq war and global financial crisis. Many young people witnessed the transparent failings of the state juxtaposed with increasing encroachments on civil liberties in a new digital world. Bitcoin’s innovation of providing financial sovereignty in this context resulted in an understandable bonding of doctrine and technology. But as Bitcoin matures, what was the pipe dream of it being able to change society is increasingly becoming a possibility. Is it therefore time to question the libertarian thinking that has been used to grow Bitcoin’s popularity? Can libertarianism provide a complete and robust basis for society? Or, are it’s ideas best assimilated into more orthodox political systems? Such discussions may be challenging for those who have been at the forefront of the battle to enable Bitcoin to grow. But, as Bitcoin’s popularity widens and it attracts people of all political persuasians, this is the time for a debate to test the limits and strengths of libertarian thinking, and establish the red lines if and when compromises need to be made. - - - - This episode’s sponsors:
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| 19 Dec 2022 | The Death Spiral of Western Economies with Dan Tubb | 01:50:46 | |
“It’s not like you can just evaporate the UK from the system; if you did this, if you knocked out UK sovereign debt, you would cause a domino effect that took out the entire western financial system.” Dan Tubb is a podcaster and former venture capitalist. In this interview, we discuss the unprecedented levels of debt within the US and UK. Dan goes through one by one the various options open to the state to bring debt levels back down to manageable levels; tl;dr “none of those options is going to be viable.” - - - - Over the past few podcasts, we have discussed state indebtedness. As part of these discussions, we have referenced the amazing USDebtClock.org resource that provides real-time data on debt in the US and across the world. At the time of writing, US debt stands at over $31.4 trillion, whilst UK debt is $3.4 trillion. These figures are so large and unfathomable that we have almost become blind to their meaning. Dan Tubb has been focusing on these figures, to both put them into more meaningful contexts, and to assess the options governments have for paying them off. In summary, debt levels are off the scale: adding outstanding liabilities to US debt results in a total debt worth $1 million for every American adult. In those terms, it's easier to understand that there are no real viable options for paying down this level of debt. The issue is that as citizens are generally tuned out: there is a general assumption that the subject matter is just too complex, and further, those in power must have answers to these issues. After listening to Dan’s explanations you’ll suddenly realise that these aren’t complex subjects to comprehend. The data is literally there for anyone to see. And further, it is then obvious that governments are consciously not dealing with increasingly high levels of unsustainable debt. So, why have such discussions been missing from MSM? There are some great journalists who attempt to cover specific areas. But nobody is yet screaming that the house is on fire although we’re all feeling the heat and hearing the cracking of timber. The problem is that governments have limited ways of keeping the system from falling apart. Increasing levels of control are openly being discussed in government institutions, particularly digital identities and CBDCs. Some believe such measures are designed to avert civil unrest. So, it’s up to those who have got the receipts to start banging the drum before it’s too late. - - - - This episode’s sponsors:
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| 21 Dec 2022 | The Queen of Scams with Jamie Bartlett | 01:29:47 | |
“It’s a gigantic pyramid scheme with all sorts of organised crime and money laundering angles to the story as well, but at the centre of it, it’s just this woman who built a very sophisticated scam and then disappeared with all the money; and then the FBI finally put her on the 10 Most Wanted list about three months ago.” Jamie Bartlett is the co-writer and presenter of the BBC's podcast The Missing Cryptoqueen, an ongoing investigation into OneCoin and the disappearance of its founder Ruja Ignatova in 2017. In this interview, we discuss the latest updates on the case that triggered the first new episodes in the podcast being released in over 2 years. - - - - OneCoin was called the greatest Ponzi scheme in crypto. Obviously, a lot has happened this year that is likely to result in a reappraisal of that statement. But, the fraud perpetrated was eyewatering: allegedly $4 billion was stolen from investors. This means it ranks as still one of the biggest Ponzi schemes both inside and outside of crypto. Yet, what differentiates OneCoin from other Ponzi schemes is that the lead character has yet to be punished: in 2017, Ruja Ignatova, the glamourous and enigmatic founder of OneCoin, disappeared. Jamie Bartlett, a seasoned investigative journalist, started looking for her in 2019. Rumours turned into breadcrumb trails, which turned into credible leads, which turned into dust. Whilst Ruja remains elusive, the deeper Jamie delves into this case the more ominous the story becomes. What started out as a scam by a set of audacious schemers, soon became a broader criminal enterprise involving organised crime, corrupted state officials and powerful interests. The FBI has made Ruja one of their ten most wanted fugitives. The stakes are massive. A troubling aspect of this case is the willingness of supposedly reputable people and firms to engage in ‘legal’ support for this fraud, including intimidation of those who seek to uncover the truth. This case cuts to the core of what is wrong in both crypto and wider society: willingness within professional groups to go along with malfeasance when there is money to be made. This is why we need more people like Jamie. More than the dogged determination to see a story through to a suitable conclusion is the dedication to a life without the quick and easy financial payoffs of other professions. Journalists are willing to avoid the incentives offered by other industries to pursue truth. Perhaps such uncelebrated bravery is the real story here. - - - - This episode’s sponsors:
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| 23 Dec 2022 | How Lightning Drives Global Bitcoin Adoption with Danny Scott | 01:16:21 | |
“Visa and Mastercard, SWIFT… the innovation on them has grinded to a halt, it doesn’t really change, nothing really happens, it doesn’t move, it’s very centralized, it’s very controlled. What we have with the Bitcoin Lightning network, it’s open, interoperable, that allows for innovation to happen overnight.” In this episode of the podcast, I sit down with Danny Scott, the CEO of CoinCorner, a bitcoin exchange based in the UK. Danny has built CoinCorner into a successful business without relying on VC funding, and he shares his insights on the challenges and opportunities of doing so in the highly competitive world of bitcoin. During our conversation, we discuss the current state of bitcoin adoption and the importance of making cryptocurrency accessible and user-friendly for those who are new to the space. Danny shares his thoughts on the role of the lightning network in driving adoption, and how it can help make bitcoin more useful and functional for everyday use. We also delve into the topic of how you can't force adoption, and the importance of building a product or service that meets the needs of your target audience. Danny shares his thoughts on how to approach building a business in the cryptocurrency space, and the key factors that contribute to success. Overall, it's a fascinating conversation with a true industry leader. Tune in to hear Danny's insights on building a bitcoin business, driving adoption, and the future of the Bitcoin industry. - - - - This episode’s sponsors:
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| 28 Dec 2022 | Debt, Deficit, Spending & Tax with Dominic Frisby | 01:29:21 | |
“In a libertarian society where the government doesn’t do anything the responsibility falls on citizens to do stuff, at the moment, that responsibility is the state’s; so, with freedom comes responsibility.” Dominic Frisby is a British author, comedian, voice actor and musical curator. He also produces one of the top 20 financial substacks. In this interview, we discuss a range of issues highlighting how dire our current economic situation is, and if sound money and libertarianism are the solutions, the responsibilities this imposes on us as free citizens. - - - - The global economy is in serious trouble. Our guests know it. Regular listeners know it. Yet many are ignorant of the dangerous predicament we’re in. This is despite significant evidence of the coming crisis being available to anyone wishing to look. Portents of things to come abound: rising deficits, unsustainable debt, high inflation and crumbling public services. And there is no political incentive to resolve the situation. This does not mean that governments aren’t preparing. For starters, there are tremors in the bedrock of the global reserve currency system. China is discreetly hoarding gold. Russia is seeking to utilize digital currencies. The number of countries adding their name to a new BRICS’ based reserve system is growing. The multi-polar world is being built. Then there are the less explicit but equally concerning plans in the traditionally democratic west. If, as expected, the global economy significantly weakens, the public response could destabilise society. There is always more than one path out of any situation, but authoritarian policies are more appealing to those seeking to maintain control. Implementation of schemes designed to control society will require mendacious actions. CBDCs will be sold as benign technology advancements enabling more efficient payment mechanisms between the state and the individual. The risks are clear. Fundamentally, our freedoms will depend on the monetary basis we adopt. These are crucial times. It’s up to us to continue to raise the alarm. - - - - This episode’s sponsors:
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| 30 Dec 2022 | Doomberg on Energy | 01:13:02 | |
“Harnessing low-energy fuels is an entirely different challenge, as we’re finding out, and Germany is finding out the hard way; look, everywhere it’s tried it ends up with a more expensive grid, a dirtier grid, and a less reliable grid.” Doomberg is an anonymous collective producing the world’s most popular financial substack. In this interview, we discuss the roots of the 2022 energy crisis, why nuclear power needs to be the basis of our energy needs, and how pragmatic decision-making is needed if we’re to best fulfil our energy needs. - - - - Just a few years ago energy was abundant and cheap. The oil crisis of the 1970s was a historical anomaly. The assumed understanding was that between governments, major energy companies and the markets, energy provision was becoming more reliable and cost-effective. The Russian invasion of Ukraine showed how paper-thin this impression of the energy sector was. Systemic underinvestment in energy infrastructure, particularly nuclear, has left the industry vulnerable to shocks. And Ukraine has been a heck of a shock. Long-term political strategies for energy provision have had to be rewritten in real-time. The market, unsurprisingly, has been volatile to the upside. One in three UK families are expected to be in fuel poverty in 2023. But, obviously, energy is not a discretionary spend. We all need a minimum material quantum just to survive. It is clear, now we’re self-rationing energy, how vital it is to our way of life. Humans flourish with access to energy. The flipside is a retardation of civilisation. So, whilst limitless cheap energy is still decades away, can we supply sufficient energy for our society to prosper? Fundamentally, are we making the right decisions to facilitate the best use of resources? Nuclear power is both reliable, efficient, safe and direct power generation that is carbon-free. Why has investment been curtailed? Material bottlenecks mean we can’t produce enough batteries for EVs. So why aren’t we maximising the benefits of battery tech through use of hybrids? Ideology and nimbyism have counterproductive effects: serious harm is outsourced to the poorer areas of the world whilst leaving us with insufficient infrastructure at home. Clearly, decisions need to remove dogma and deal with the world as it is. The frustration is that we have the skills and knowledge to resolve this situation. We just need to bring pragmatism out of the dark. - - - - This episode’s sponsors:
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| 03 Jan 2023 | 2023 Bitcoin & Macro Outlook with Lyn Alden | 01:12:01 | |
“If you have a recession, and you print a tonne of money and throw stimulus at it, you can get out of that recession quicker. But then you’ve done it at the cost of higher debt, and then potentially for a more inflationary rebound in the future, which then you have to then raise rates very quickly and potentially put yourself into another recession. And so there are levers you can pull, but every lever has a cost associated with it.” Lyn Alden is a macroeconomist and investment strategist. In this interview, we look forward to 2023: what’s happening to Japan and China’s economies, whether we are entering a recession, and how will investments, including Bitcoin, perform over the next year? - - - - 2022 was when chickens came home to roost. Over 70 years of relative peace across Europe had lured politicians into a false sense of security allowing cold pragmatism to supplant ideology. Then Russia invaded Ukraine, and the wisdom of assimilating energy markets across the old iron curtain was brought into sharp relief. China sent equally belligerent signals to the west. In short order, retreat and resilience have replaced cooperation and efficiency. Assumed certainties that had driven the world economy for generations dissipated in real-time. The economic impact was sudden: stressed supply chains, shortages of goods across all sectors, and dramatic changes in inflation. Excessive sovereign debt has limited governments’ options. We’re now in the central bankers' worst-case scenario: high inflation, high debt, and low growth. Advanced countries like Japan are now on the ropes. A global recession is looming. So, how does one prepare for 2023? Where should we put our money? According to Lyn Alden, it’s far from easy to navigate this market. When a preeminent investment strategist talks of minimising losses you know that we’re in unfamiliar territory. And yet, there are still reasons not to lose hope. The world didn’t collapse in 2022. China’s economy should rebound. It will take time for the world to reorder itself to the new rules of the game. Onshoring and durability are going to require significant investment. Debt levels make it harder to source the funds required. At the same time, we’re in a period of stagnation with potential volatility at given moments. Governments will have to chart a steady course through choppy waters. Investors will need to keep a close eye on markets and know where the lifeboats are. - - - - This episode’s sponsors:
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| 06 Jan 2023 | Defending Bitcoin in DC with David Zell | 01:37:37 | |
“In much the same way that the internet changed the world, and changed how we interact with information, Bitcoin has changed how humanity interacts with value and money.” David Zell is a co-founder of the Bitcoin Policy Institute and Director of Policy at BTC Inc. In this interview, we discuss how the Bitcoin Policy Institute engages to educate politicians in DC through combating FUD, distinguishing Bitcoin from crypto, and aligning Bitcoin with US National Security interests and American values. - - - - Bitcoin was developed on the shoulders of the cypherpunks building new forms of money outside of government control and oversight. Permission was not sought, as permission would not have been granted. Government actively disrupted the cypherpunk vision, seeking to destroy it. Bitcoin’s emergence was therefore antithetical to the concerns and endorsement of decision-makers. But, some believe that the initial battle has been won. Bitcoin is now 14 years old. It has spread to all corners of the globe, and radically changed the mindset of those who have interacted with it. This includes some of those in the corridors of power, who have been won over by its ideology and technical resilience. The question now is how Bitcoin development continues. Bitcoin could continue to evolve without seeking to engage with the levers of the state. Experience suggests that this would marginalise Bitcoin and Bitcoiners within the US. In the meantime, other protocols and blockchains would continue to curry favour with lawmakers and mould the regulatory framework to their needs. Who would win in this situation? Or, through advocacy and education and cooperation with those in DC, Bitcoin could be allowed to develop openly within the United States. Much like the internet, the risks posed by this new innovation wouldn’t be allowed to throttle the huge benefits it has to offer both individuals and society. In a grand scenario, Bitcoin could allow the United States to continue to compete for hegemonic power whilst continuing to champion individual freedom and sovereignty. This is a huge prize. Perhaps the biggest prize. This is why there are people willing to put in the hard graft to develop and nurture bodies like the Bitcoin Policy Institute. The future owes them gratitude. - - - - This episode’s sponsors:
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| 07 Jan 2023 | China & America’s Economic War with Matthew Pines | 02:10:38 | |
“It’s not being looked at properly as a realistic scenario that, say, by 2030 you could have several countries that have meaningful holdings of bitcoin as part of this geo-economic arrangement, and this is a way for them to hedge.” Matthew Pines is a Managing Consultant at the Krebs Stamos Group and a Fellow at the Bitcoin Policy Institute specializing in national security. In this interview, we discuss the rapidly changing geopolitical order as China competes with the US for dominance, and how Bitcoin may become one of a number of alternative global reserve assets to US debt. - - - - There are moments when the world pivots when events change the course of world affairs. The Russian invasion of Ukraine was one such event. More to the point, it was the western sanctions imposed on Russia that will come to be seen as a paradigm shift. It was when the world went from working in an open Eurodollar system to a closed system involving alternative forms of money. In the face of increasingly fraught geopolitics and a loss of faith in the US dollar, certain countries are seeking to diversify the reserve assets they hold. This will create problems for the USD-UST system, at the same time the US is facing significant headwinds: dealing with huge structural debt, ‘reshoring, restocking and rewiring’, and countering China’s rise. What was once a theory is now turning into reality: China is on the cusp of being able to compete with the US, principally within the Asian geopolitical sphere. To this end, China has a strategic imperative to secure reliable commodity and energy sources, and will likely move towards a proto-petroyuan system, and coerce other countries and entities to follow. In this context, Bitcoin is emerging as a viable alternative to fiat currencies and gold as a global reserve asset. It is a unique form of money: a digital commodity with global fungibility, limited counterparty risk, and large liquidity. But critically it is a politically neutral asset, an increasingly attractive attribute for countries seeking to hedge their exposure to increasing geopolitical risk. In the US, the rise of Bitcoin companies, along with the Biden administration's Executive Order on Digital Assets and positive statements by officials, suggests the US could accept Bitcoin's gradual adoption and monetization. From a national security perspective, key decision-makers may realize that allowing Bitcoin to serve as a new global reserve would disproportionately benefit the US. - - - - This episode’s sponsors:
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| 09 Jan 2023 | GBTC Leverage Death Rattle? With Steven McClurg | 01:06:19 | |
“Bitcoin goes in four-year cycles based on halving, and I’m sure two years from now when everything is fine again, and prices go up again, people are going to get excited, they’re going to get greedy, and they’re going to pump things up on leverage. And I hope people remember this point in time and say, okay, stop, cut it out…leverage isn’t bad, over leverage is bad.” Steven McClurg is a Co-Founder of Valkyrie Investments. In this interview, we discuss the causes of the crypto crash of 2022 and the effects seeping into 2023. We talk about Genesis, GBTC and Valkyrie's proposal; how over-leverage and debt are leading to a breaking point; the positives of political chaos, and how Bitcoin could have bottomed out. - - - - “In a risk-off environment, Bitcoin definitely goes down, there's no doubt about it.” That was Steve McClurg being interviewed on What Bitcoin Did in October 2021. Since then we’ve witnessed the biggest players in the market going bankrupt one after another in the biggest domino toppling event the ecosystem has ever seen. It is therefore more than timely to unpick what happened with one of those who foresaw problems and who manages one of the investment vehicles not having to charter chapter 11 proceedings. Steve himself admits to being surprised at the scale of the events that have occurred in 2022. The extent of recklessness, greed and criminality has shocked us all. But, there were warning signs. The amount of yield on offer was eye-watering, particularly in the context of a fiat monetary system when lending returns were negligible. This was the canary in the coal mine. The fact that there was no meaningful borrowing market on the other side of these trades seems obvious in hindsight. However, the scale of over-leverage and rehypothecation was able to hide problems until the moment systemic collapse had become all but inevitable. The question is, therefore, what now? Are some of the large funds still locked into active investment vehicles, such as GBTC, still safe? What can we do to protect the industry from such malign actions in the future, or, are crashes like these inevitable? And what about Bitcoin? Has its price bottomed out? Can it yet return as an investment vehicle for the masses? It’s time to ask someone at the coal face. - - - - This episode’s sponsors: ----- | |||
| 11 Jan 2023 | Bitcoin: A Year in Review with Matt Odell | 02:35:44 | |
“I’m not trying to single out you. There are many, many content creators in the space, event planners in the space, that give rosier coverage to sponsors. And then when the sponsor rugs all of their audience they say ‘no one could have seen it coming, it wasn’t my responsibility.’ But meanwhile, there’s plenty of us that didn’t do that.” Matt Odell is host of the Citadel Dispatch, co-host of Rabbit Hole Recap, venture partner at Ten31 and co-founder of Bitcoin Park. In this interview, we review 2022: the attacks on privacy, the reaffirmation of self-custody, how people who were treated like gods rekted the market, and the responsibility of Bitcoin podcasters in doing right by the audience. - - - - 2022 has been brutal. First, tough lessons were learnt in trying to use Bitcoin for warranted privacy needs within North America. Then, we had our industry's very own global financial crisis when the tide went out and we saw how many of the supposed titans were swimming naked. So many people have been damaged, so many have been rekt. The collateral damage to Bitcoin is unknown, but material. So much of that damage has come from malign and selfish actions by people who knew better. They have exploited a new form of money, which was meant to circumvent systemic centralized greed and corruption, to put into practice new more brutal forms of extraction than anything we witnessed in TradFi. But, there are also those, whose actions have been made in good faith, who need to reflect on the events of the past year. We know where blame is centred, but how far does blame extend? Explicitly, what responsibilities do Bitcoin podcasters in general, and this Bitcoin podcaster in particular, have in regard to protecting and educating their audience? 2022 has been personally brutal for a whole range of reasons. But, it is now time for reflection. It is right therefore that, as a show that assesses and comments on the industry, the tables are turned and a light is shone on this show’s decision-making. There is nobody better than Odell to shine that light. Fundamentally, it is the audience who will decide. I look forward to reading any comments listeners may have following one of the toughest podcasts I have hosted. - - - - This episode’s sponsors: ----- | |||
| 13 Jan 2023 | Bear Market Analysis with Dylan LeClair | 01:22:58 | |
“Even if bitcoin has all of this native adoption and organic use, the real driver of all of this, globally, is the 100 trillion dollars of a forced buying of dollars; because you’re short dollars, it’s dollar liabilities.” Dylan LeClair is a Bitcoin and macro analyst working for Bitcoin Magazine. In this interview, we discuss the carnage in crypto in 2022 that’s bleeding into 2023. We talk about the clear signs of Ponzi schemes, the lost fortunes of crypto billionaires, and how Bitcoin regains its footing in the market. - - - - It has been 14 years since Bernie Madoff pleaded guilty to running the biggest Ponzi scheme in history. It should have been a defining moment, and yet, we’re now witnessing a tsunami of similar tragedies unfolding in crypto; a period Dylan LeClair is calling “a golden age of fraud”. The cruel irony is that the industry was inspired by Bitcoin, formulated in part as a technical correction to such scams. How did this happen? Just 2 months after Bitcoin’s release in January 2009, Bernie Madoff stated at his plea hearing: “When I began my Ponzi scheme I believed it would end shortly and I would be able to extricate myself and my clients from the scheme.” This may be the fundamental psychology of those involved in Ponzi schemes: it is a short-term workaround that can be resolved, and investors will be made good. We may never know the true intentions of anyone involved in 3AC, Luna, Celsius, FTX and other companies currently in the spotlight, but it’s hard to believe that anyone sane could think they could run a perpetual Ponzi. They must all have had an exit strategy in mind. A strategy where they and investors made good. But, time and time again, Ponzi schemes, bound by the realities of the market, fail. So, what did we miss? In an industry that was built on the mantra of “don’t trust, verify”, how were so many people fooled? We can all in hindsight question FTX’s pitch of 15% returns with no risk. But, how many of us assumed the huge customer bases and political endorsements and A-list celebrity advertising had merit because we were not the smartest guys in the room? Maybe it takes the cold logic of a fresh analyst, unencumbered by industry groupthink, to see the warning signs. Dylan LeClair has made a number of successful calls and trades on both sides of the market. He can sense BS, has the strength to call it out, and, as a result, he has witnessed a well-deserved meteoric rise. What’s his trick? Simple: don’t trust, verify. - - - - This episode’s sponsors: ----- | |||
| 16 Jan 2023 | What Do Economists Get Wrong About Bitcoin with Josh Hendrickson | 01:34:27 | |
“There’s this weird thing with economists: we always talk about ‘monopoly is bad, competition is good,’ but then when it comes to money, we’re like: ‘oh, no, just the Federal Reserve can do the money.’” Dr. Josh Hendrickson is an associate professor of economics and chair of the Economics Department at the University of Mississippi. In this interview, we discuss how Bitcoin has influenced his economic teaching, the importance of Bitcoin in the current unprecedented global debt bubble, and why people continue to dismiss Bitcoin. - - - - “Bitcoin and the entire process that led up to it was motivated by the desire to make the world a better place and internet commerce more private. It was a true technological innovation. The market will decide what that innovation is worth.” We’re used to hearing such statements from ardent Bitcoiners. But this statement was made by Dr Josh Hendrickson, an economics professor who chairs a University Economics Department at one of the US’s top public universities. Bitcoin is still dismissed by a significant number of well-placed people within society. We hear from many people who are passionate about Bitcoin but feel unable to discuss this within their work networks for fear of ridicule that could harm their career paths. This is why having esteemed individuals from traditional academic backgrounds advocating for Bitcoin is so critical. A professorship is a hard-won title. It takes years of graft. The history of academia is littered with stories of people being ostracised for taking left-field positions. Therefore, academics, particularly professors and department chairs, are not ones for throwing weight behind ideas that are not inherently sound or principled. So, as with the growing list of people BPI has been attracting, these academics provide the solid rationalisation of Bitcoin’s thesis. This is not to state that there is a consensus within these groups regarding Bitcoin’s path over the coming years and decades. We live in tumultuous times. The world’s economic and political landscape is at the mercy of an almost limitless number of changing variables. But, there is a growing consensus that Bitcoin is a unique innovation, a new form of money with the potential to protect those who need it most. All other debates to justify Bitcoin should fall by the wayside. - - - - This episode’s sponsors: ----- | |||
| 18 Jan 2023 | How Bitcoin Can Expand the Grid in Africa with Erik Hersman | 01:12:56 | |
“There’s 600 million people in Africa that don’t have access to electricity. That’s a lot. That’s two-thirds of the world’s total that don’t have access to electricity that’s here. And so what we all should be trying to do is focus on how can we help electricity proliferate across this continent. Bitcoin mining just happens to be the missing link.” Erik Hersman is an entrepreneur and the co-founder of Gridless. In this interview, we discuss how half of all Africans are without access to electricity, the affordability issue affecting the rest who do have access, and how Gridless aims to alleviate this situation by helping to build out cheap sources of stranded renewable energy. - - - - Africa has an energy problem. It has been estimated that the continent has the potential to produce approximately 2.5 million terawatt hours of energy per year from solar and wind energy. To put that into context, the US uses around 4,000 terawatt hours of energy per year. And yet, approximately half of all Africans lack access to electricity. Furthermore, a large number of those with access struggle with the relatively high costs. There are a multitude of reasons why this situation has been allowed to develop. But, despite the focus of major NGOs and developed nations, the issue is getting worse: whilst access to electricity is increasing around the world, it is declining in sub-Saharan Africa. And, without access to energy, any plans to improve Africa’s economic future will always be constrained. While some have seen this as a tremendous challenge, others have recognised it as a tremendous opportunity. Whilst the issue of stranded renewable energy was being mitigated by Bitcoin mining, the costs for the associated equipment were prohibitively high. That was until last year when the problems that beset the mining industry in the US, opened the doors for those looking to harness the power of Bitcoin mining in Africa when the price of ASICs dropped sharply. The thesis is simple: Bitcoin miners help subsidise the build-out of mini-grids, providing electricity to dispersed and remote communities. As supply and demand find an economic equilibrium, the Bitcoin miners can be redeployed and the process starts in a new location. It is a market-driven solution that provides a return to all stakeholders. The aim is to catalyse the electrification of Africa. It may result in Africa becoming a new home to Bitcoin miners. - - - - This episode’s sponsors: ----- | |||
| 20 Jan 2023 | Trapped Inside The Collapse of FTX with Travis Kling | 01:37:48 | |
“The bad guys are kicking the shit out of the good guys. Look at what just happened, this shit is in shambles right now. The space has this attack vector from intelligent sociopaths, and they’ve done so much damage at this point.” Travis Kling is the Chief Investment Officer at Ikigai. In this interview, we discuss being on the frontline of the FTX collapse: Ikigai had a large majority of its investment funds in FTX when it stopped withdrawals; Travis had a majority of his liquid net worth also stuck in the bankrupt company. - - - - 2022 will be a defining moment for crypto. In November 2021, the total market valuation was approaching $3 trillion. By the middle of 2022 the market valuation was down to $800 million. UST had depegged in May and caused contagion to ripple through the market: in short order Celsius, 3AC and Voyager all filed for bankruptcy. And yet, the biggest shoe was yet to drop. In January 2022 FTX was valued at $32 billion. The August/September issue of Fortune magazine compared FTX’s founder and CEO Sam Bankman-Fried (SBF) to Warren Buffet. Commentators, investors and media outlets likened SBF to JP Morgan as he bailed out struggling competitors. He’d been hosted by congressional committees in DC to help shape legislation multiple times. SBF was seemingly untouchable. That all changed in November with a rapid fall. On November 2nd CoinDesk reported on concerning balance sheet issues at FTX’s sister company Alameda Research. On November 6th, Binance announced it would liquidate its entire holding of FTX’s FTT token. On November 7th a run on FTX began. On November 8th FTX halted withdrawals. Days later it filed for bankruptcy. SBF was orchestrating a years-long fraud of epic proportions. Some in the industry had raised concerns, but many believed the hype. What Bitcoin Did did not have a relationship with FTX, but there are scenarios where that could have been different. Others did have relationships with FTX. For example Travis Kling, who had a large majority of his investment funds and personal liquid net worth stuck in FTX. On November 14th Travis posted a Tweet thread: “I have some pretty bad news to share… I lost my investors’ money after they put faith in me to manage risk and I am truly sorry for that. I have publicly endorsed FTX many times and I am truly sorry for that. I was wrong.” This show goes through what happened and reflections on where we go from here. As this show goes live shortly after Genesis filed for bankruptcy, it’s obvious we’re still in the midst of this mess. - - - - This episode’s sponsors: ----- | |||
| 23 Jan 2023 | Bitcoin Security + the Future of AI with Jameson Lopp | 01:39:28 | |
“Every species that becomes sentient and develops technology that is sufficient to start creating signals that propagate through the universe, eventually also hits this inflexion point, which we may be close to, wherein the power of the technology becomes uncontrollable, and they destroy themselves for one of a million different reasons.” Jameson Lopp is the co-founder & CTO of Casa. In this interview, we discuss why Casa has extended custody support to Ethereum, important security lessons from the Luke Dashir hack, Bitcoin security & inheritance planning, and how AI came of age in 2022 with the release of ChatGPT. - - - - Last year provided the most brutal examples of why “not your keys, not your coin” should be the first thing anyone new to the ecosystem learns. Dave Portney’s infamous tweet questioning where his Bitcoin was after FTX blew up, showed how generally unaware people are of the risks associated with exchanges, and the importance of custody in relation to ownership. However, there are also those who quite reasonably need greater protection than that offered by a hardware wallet. There are many examples of people losing access to their Bitcoin held off-exchange. Further, the hacking of Luke Dashir’s security setup shows the risks of bespoke security solutions. This is where Casa comes in - providing multisig custody solutions for Bitcoin holders. Casa has now extended its service provision to Ethereum. For Bitcoin maximalists this may be viewed as a red line having been crossed. For those who hold Bitcoin and Ethereum, this may provide a practical one-stop shop solution that convinces them to take their holdings (including Bitcoin) off exchanges. There are merits to both sides of the pragmatism versus maximalism argument, which is sure to continue to be debated throughout 2023. And yet, history may relegate the significance of the collapses in crypto in 2022 behind last year's massive advances in AI technology. ChatGPT, in particular, has the potential to revolutionise the employment market: online customer services, copywriting, journalism, consulting, academia, computer programming… the disruption to white-collar workers could be unprecedented. Despite being less than 2 months old, ChatGPT has led to a pervading wave of excitement and hysteria. It is a wake-up call of how technology can rapidly interrupt the assumed order within society. The issue is that it will be followed not only by advances in its own capabilities, but other technologies will follow in biotechnology, VR, nanotechnology etc. etc. etc. Are we on the edge of the greatest revolution to impact humans? - - - - This episode’s sponsors: ----- | |||
| 25 Jan 2023 | The Great Uprising with Vivek Ramaswamy | 01:46:55 | |
“Every species that becomes sentient and develops “When you tell people they cannot speak, that is when they scream. But when you tell people they cannot scream, that is when they tear things down.” Vivek Ramaswamy is an entrepreneur and author. In this interview, we discuss his thesis that social and political struggles are rooted in the rise of a managerial class dominating society at the expense of everyday citizens. We also talk about the need to revive a binding national identity, and how the social justice movement may be causing more harm than good. - - - - Public choice theory influenced a generation of conservatives around the world in the 1970s and 80s. In essence, the theory applied economic thinking to political behaviour. It undermined the notion of public interest: it was a nebulous irrelevance in relation to public policy as all individuals, including politicians and bureaucrats, work in their own self-interest. What resulted was the development of a managerial class that would be incentivized to achieve specific aims through monetary rewards. This class has grown since the 1980s to now represent, in some people’s views, an oversized controlling force within society. However, their decision-making is increasingly outside of the purview and influence of ordinary citizens. Vivek Ramaswamy believes this friction between managers and everyday people is at the root of the current social and political struggles within society. Exacerbating these tensions are increasing incidents of managers being coopted by elites to do their bidding, undermining constitutional norms. Vivek believes that we are now at a defining moment when the defining principles of political organisation need to be reviewed. The ideals and principles of the United States, as laid out in the constitution, became a unifying force around which a vibrant national identity was developed. This, until very recently, facilitated and supported American hegemony. But, in short order, that binding sense of a united vision has been replaced by factionalised ideologies that threaten the viability of the American experiment. The fundamental issue is that the notion of Americanism has been allowed to wither. Vivek believes that to combat China and meet the other great challenges of our age, America must find again a shared national identity that eclipses current partisan divisions. In essence, the US must retrace its steps before venturing forward. - - - - This episode’s sponsors: ----- | |||
| 27 Jan 2023 | From Paralysis to Bitcoin with Kale Hyder | 01:59:36 | |
“When we made that drive home, we got home, we got in the driveway. And when we were in the driveway I was crying because it was a realisation that, at that point, I didn’t accomplish what I wanted to accomplish in those six weeks where I thought I was just going to walk out.” Kale Hyder works in an investment bank. In this interview, we discuss how his life 7 years ago changed on a dime: a rare spinal inflammation led an aspiring high school basketball player to have to deal with becoming quadriplegic. We talk about the physical and mental rehabilitation, and how, with the help of others, he’s found direction, purpose and happiness. - - - - Think about what you’re going to be doing next week. Are you working or studying? Will you be engaging in hobbies? Do you have any household chores that need completing? What social plans do you have? We all plan for the future and accept it as a given, but that’s not always the case. For Kale Hyder, all of his future plans were wiped away overnight. One week he was at high school, studying, playing basketball & planning for his future, the next, he was unable to move. Panic and disbelief led to a hospital visit and tests and a diagnosis: transverse myelitis. Spinal inflammation. And that was it, Kale was paralysed. Life changed. Forever. Cases like Kyle’s are rare, and the causes aren’t properly understood, but it results in irreparable damage to nerves in the body’s communication highway. The damage Kale was left with was made worse by where the inflammation was in his body. Kale’s spinal cord swelled at the base of his neck, and he became a quadriplegic, he could no longer move any of his limbs. In this fascinating discussion, we talk about the long process of treatment and rehabilitation, learning to redevelop basic skills, how the body adapts and reconfigures itself, and the need for mechanical aids to perform functions previously taken for granted. Kale also opens up about depression, frustration and resignation. It’s a story about acceptance and finding new paths. It’s a story of realisation and insight. Happiness and fulfilment found in unexpected places. It is uplifting to hear such wisdom from someone who’s had to face the worst that life has to offer. It is a story that ends up with Bitcoin, but it is not a Bitcoin story. - - - - This episode’s sponsors: ----- | |||
| 30 Jan 2023 | The Rise & Fall of the Russian Empire with Michael Malice | 01:39:01 | |
“Many of these organisations that were carrying the water for this nightmare regime are still in place today…the New York Times, which did everything in its power to obscure Stalin’s starvation of millions of Ukrainians, is still the paper of record. It’s the Atlantic, it’s the New Republic; this isn’t metaphors or analogies, it’s literally the same organisations.” Michael Malice is an anarchist, author, and podcaster. In this interview, we discuss his latest book, The White Pill: A Tale of Good and Evil. It charts the rise and fall of Russia, its insidious evilness, how western intellectuals supported and justified the communist state from afar, and why it is impossible for those in the west to comprehend how pervasive a totalitarian regime can be. - - - - Ask anyone to name the evilest empires in history and it is highly unlikely that the Soviet Union will be anyone’s first suggestion. And yet, the regime is estimated to have killed 61 million people during the 20th century, most of them by Stalin. It is called democide, the mass murder of citizens by their own government, and the Soviets are history’s worst. The killings of people throughout the Soviet empire took various forms but included executions, famine, forced labour, starvation, mass deportations and massacres. Human life was cheap, and nobody was immune from the wicked regime. And, in addition to the violence, the state employed an all-encompassing oppression of its citizens, involving surveillance, censorship, and fear. The reality of the Russian Communist State was maintained well beyond the moment it should have ceased functioning, chiefly because everyone had been brainwashed, from workers to the leaders. That this fairytale was a sham couldn’t be hidden forever, and once the facade started to give it didn’t take long for the whole edifice to crumble away to dust. So why has the evilness of the Soviet Union been downplayed in the west? There are many reasons, but an intellectual affinity for communist ideals is the root cause. Western intellectuals were often in favour of the Soviet Union and its goals of creating a socialist utopia, and many supported the idea of the state as a progressive force. This attitude was rife in the 1930s, but, it still has centres of support today. That a massive country can rapidly change its governance structure, inflicting violence and fear on millions and millions of people, and maintain its position for decades despite corruption, abuses and stagnation, is a salient tale for us all. Notably, as many of the cultural elites defended the regime from afar, and, that this story has been largely forgotten. - - - - This episode’s sponsors: ----- | |||
| 01 Feb 2023 | America’s Role in the New World Order with Natalie Smolenski | 01:31:40 | |
“People have forgotten what a freedom to transact means…without having to involve a third party intermediary, without having to prove my identity to some panopticon, without having to demonstrate that I’m a good and loyal subject. No, the government is subject to me, I am the source of sovereignty, you are the source of sovereignty. So let’s take that back.” Natalie Smolenski is an Executive Director of the Texas Bitcoin Foundation and a Fellow at the Bitcoin Policy Institute. In this interview, we discuss why America needs to be re-found. We talk about the self-destructive impacts of striving for supremacy, what the American project stands for, trying to build solidarity across the divide, and the importance of Bitcoin. - - - - The great irony of the twentieth century is that in winning the cold war America has lost its way. Far from the defeat of the Soviet Union being a stepping stone to cementing US hegemonic power, within a generation, we are seeing a fracturing of the global order and the decline of western liberal democracies. The importance of the American dream as a projection of soft power has waned. In the face of a multi-polar world and a wave of significant issues that need urgent action, politicians are losing confidence in trying to win the battle of ideas. The race seems to be about winning the battle of technology without going bankrupt. Optimism and hope have been replaced by cold strategic pragmatism. Endless wars have dulled Americans’ enthusiasm for being that shining city on the hill. But, is this myopic thinking? The long lens of history shows that the projection of America as a beacon of hope was through manifestations of the principles of liberty, equality and justice on which the country was founded. America became a magnet for the strivers of the world. Can it become so again? What is clear is that prior to renewing its confidence as a global power that champions freedom, America needs to heal the domestic divides. A nation needs to be united internally if it is to thwart external threats. This means finding new ways to engage and identifying new leaders to take ideas forward. It also means embracing again the old ways of thinking: that America’s “glory is not dominion, but liberty.” - - - - This episode’s sponsors: ----- | |||
| 03 Feb 2023 | The Truth About Nuclear Energy with Anthony Jared | 01:46:25 | |
“I don’t like to call myself an environmentalist because that’s such a subjective term, but I’m very, very, very conscientious of the environment... I try extremely hard to make sure that my carbon footprint is very small, and I’m telling you, Nuclear is 100% the answer... there is nothing even comparable, not even in the ballpark by an order of magnitude.” Anthony Jared is a 30-year Navy veteran and who has operated nuclear reactors on both nuclear submarines & aircraft carriers. In this interview, we discuss the truth about nuclear energy, the safety concerns and why there has been such a prolific anti-nuclear movement. - - - - Nuclear energy is a contentious issue. And yet… In terms of death rates per unit of electricity production, accounting for accidents and conservative pollution assessments, nuclear energy is the second safest source of energy: solar has 0.02 deaths per TWh, nuclear 0.03, Oil 18.43, coal 24.62, and brown coal 32.72. This equates to someone dying prematurely as a result of nuclear every 33 years in a town of 150,000, whilst in the same town as a result of coal 25 people per year would die prematurely. Nuclear is the cleanest energy source. Per GWh, nuclear produces 3 tonnes of greenhouse gases, solar 5 tonnes, natural gas 490 tonnes, oil 720 tonnes, and coal 820 tonnes. Little nuclear waste is generated, particularly where waste is reprocessed: in France, less than 0.2 of the waste is high level. US Oak Ridge National Laboratory estimates coal-powered plants carry 100 times more radiation than nuclear power plants into the surrounding environment. Further, nuclear has the potential to be the cheapest energy source. A cost comparison is complex: for every analysis stating nuclear is the most economical energy source, there’s a report stating the opposite. However, nuclear investment has dropped considerably. In 1979 234 reactors were under construction around the world. In 2022 there were 59. Innovation and economies of scale haven’t benefited nuclear. Rather, it’s been beset by increasing regulatory costs. Why is nuclear energy a contentious issue and what is the truth? - - - - This episode’s sponsors: ----- | |||
| 06 Feb 2023 | The Future of Nuclear Energy with Everett Redmond | 01:13:50 | |
“You’re seeing a lot of support for nuclear now… I think the momentum behind nuclear is growing more and more with climate change… we’re in a very good path moving forward to build out a lot more nuclear to provide that zero carbon-emitting energy 24/7, 365.” Everett Redmond is a nuclear engineer working as the Senior Director of Fuel Affairs at Oklo. We discuss the enormous challenges and opportunities in renewing the US’s nuclear fleet over the next decade, Oklo’s development of fast nuclear reactors, and how such small modular nuclear reactors will soon become commonplace. - - - - Biden’s White House has embarked on an ambitious climate change policy: it plans to eliminate fossil fuels for energy production in the U.S. by 2035. But, as anyone who has knowledge of the energy grid knows, this can not be replaced by traditional renewable energy sources: wind and solar both have intermittency and geographic constraints, hydro is even more geographically limited, and biomass has a range of issues such as the scale of land required and emissions. Whatever technology is used to produce sustainable energy in the future, it needs to provide a minimum level of base power that can enable human life to flourish in any and every location. Nuclear, despite the widespread fears, presents that opportunity: it is an extremely dense, reliable and effective power source. And yet, political pressure has resulted in the industry flatlining over the past few decades. Nuclear provides 20% of the US’s energy needs. It has been like this for the past 20 years, over which time only 1 new reactor has been built. This lack of investment means the US nuclear fleet has an average age of over 41 years, the third oldest in the world. Experts realise nuclear needs to be central to Biden’s climate change ambitions. And yet, the renewal of the existing fleet represents a challenge in itself, before thinking about increasing capacity. But there is a path forward: a new generation of fast nuclear reactors provides an opportunity to have modular designs, streamlining the build and planning process, and reducing costs and development timescales. Such reactors are designed to be inherently safe and can support a range of energy needs beyond just electricity production. Further, such reactors can use spent fuel and significantly limit the amount of waste produced. We are on the cusp of a nuclear future. - - - - This episode’s sponsors: ----- | |||
| 08 Feb 2023 | The Evolution of Bitcoin Narratives with Harry Sudock | 01:24:59 | |
“If you believe that there is a pending climate crisis and you do not believe in nuclear energy technology, you’re anti-human and I no longer know how to relate to you on the merits.” Harry Sudock is Chief Strategy Officer at Griid. In this interview, we discuss a range of narratives evolving in 2023: how Bitcoin’s value is to be explained to newbs, making sense of the general paranoia in society, the critical importance of nuclear energy, and making sense of 2022’s financial contagion within crypto. - - - - 2022 was a heck of a year, the impact of which is still being felt into the early part of 2023. However, as January turns to February, the focus is turning to what 2023 holds for Bitcoin and wider society. And who better to review the year to come than Harry Sudock. We discuss the evolving narratives used to explain and advocate for Bitcoin. As the fatigue of dealing with 2022 diminishes, how are re-energised Bitcoiners to educate those who are financially and/or technically literate but lack a grounding in Bitcoin? What are the best arguments to use to explain Bitcoin in the US, where there is a less immediate need for its utility? Further, how do we navigate the world around us? The social discourse is increasingly beset by paranoia and distrust. At the same time, there is a lot to distrust: lies and spin have become so ubiquitous and brazen that we are effectively being told to believe up is actually down. Is it any wonder that people see conspiracies where there are none? Beyond creating a noisy and chaotic public square, the real problem is we’re unable to properly address society's most pressing issues. Take energy for example. The last few podcasts have shone a light on the myths and realities of nuclear energy. It is quite clear the obvious path to providing sustainable and abundant energy lies in supporting the development of nuclear infrastructure. So, the path forward seems clear. 2023 needs an unrelenting focus on giving exposure to the truth, whilst calling out vested interests and virtue signalling. Nuance, pragmatism and veracity are the vital principles that have and will underpin all of What Bitcoin Did’s content. 2022 was about lies being exposed throughout crypto. Bitcoin in 2023 about its inherent truth. - - - - This episode’s sponsors: ----- | |||
| 10 Feb 2023 | Responding to a Financial Crisis with Jason Brett | 01:32:21 | |
“You may not care what the government’s doing and you may think what I’m doing is a total waste of time…but here’s the problem, they’re thinking about you…is Bitcoin going to work, are we going to see this revolution through and everything, I think any help we can get along the way is a positive help.” Jason Brett is a former FDIC regulator who worked through the 2008 Global Financial Crisis. In this interview, we discuss the events that led up to the 2008 GFC, the implosion of IndyMac & subsequent bank-run and what to expect from regulators following the crypto contagion of 2022. - - - - In 2008, the Global Financial Crisis brought the economic world to its knees. The crisis was triggered by a combination of factors, including the subprime mortgage crisis, the failure of large financial institutions, and some outright systemic corruption. One of the most notable events during the GFC was the bank run on IndyMac, an institution that failed due to a lack of confidence among its depositors. This event was a clear sign that the financial system was in trouble, leading to calls for greater banking industry regulation. In response to the GFC, governments around the world implemented a range of regulations. These included increased capital requirements, restrictions on risky lending practices, and increased scrutiny of financial institutions. These regulations aimed to make the financial system more robust and reduce the risk of another crisis. It's easy to draw parallels to the ‘crypto’ market in 2022. Luna, 3AC, Celcius and FTX all failed because of their lack of adequate risk management, sketchy lending practices, and some out-and-out fraud. Calling into question concerns about the stability and legitimacy of the crypto industry and, unfortunately, dragging bitcoin into this discussion. While we may see Bitcoin as totally separate to 'crypto', lawmakers and decision-makers do not, and in the fallout from the crypto contagion, we may see draconian regulations impact us going forwards. So what can we learn from the GFC in 2008, and the regulation that may affect us in 2023? - - - - This episode’s sponsors: ----- | |||
| 13 Feb 2023 | The Future of Bitcoin Mining & Security with Sam Wouters | 01:27:03 | |
“We honestly just don’t know how much we actually need to fend off all of these potential attacks…it’s kind of like with physical security: you could spend $100,000 every month on physical security and someone might still figure out a way to kill you. It’s just a tricky thing with security in general. This is absolutely not unique to Bitcoin. It’s just insanely difficult to model for.” Sam Wouters is a Research Analyst at River Financial. In this interview, we discuss Bitcoin’s hash rate: what it is, the factors affecting its growth, what this means for Bitcoin’s security budget, and what this means for Bitcoin’s energy needs. In short, there is a symbiotic relationship between expanding Bitcoin’s real-world utility and securing the blockchain. - - - - Proof of Work is Bitcoin’s central innovation: the development of a process that through game theory keep the network honest, and provides security from outside attack. It enabled a global store of value that does not need centralised armoured physical vaults for security. However, the process of hashing that enables PoW requires large amounts of power, and, with the halving mechanism, requires an increase in Bitcoin’s price, transaction fees, or both, to maintain equivalent network security spending. Bitcoin’s energy debate in 2022 was completely realigned: rather than being an attack vector for opponents, Bitcoin mining’s energy use has developed into a marketable attribute. Mega miners have sought new revenue streams and cheaper energy which has resulted in huge innovation in the industry. There is a growing realisation that Bitcoin’s utility is a powerful tool in supporting the energy transition and mitigating climate change. This means that we are potentially entering a paradigm, where knowledgeable decision-makers desire an increase in hash rate to satisfy other needs. But, there is a long list of variables affecting this: Bitcoin’s price, base layer transaction demand, ASIC supply chains, ASIC efficiency, and domestic and international political pressures. This means there is a range of possible forecasts. Irrespective of the potential future drivers that can influence Bitcoin’s hash rate, fundamentally the issue is that the hash rate must continue to grow. It is Bitcoin’s security budget that is of primary importance. All other demands fall away in this respect. Bitcoin’s adoption, use and price are all critical in relation to this. As are the efficiency gains in mining rigs. If people want to use Bitcoin mining for other purposes they need to be cognizant of these issues. - - - - This episode’s sponsors: ----- | |||
| 15 Feb 2023 | Bitcoin Mining & the Energy Grid Transition with Troy Cross & Shaun Connell | 02:00:11 | |
“Bitcoin’s an intelligence test, but it’s also an epistemic humility test. You don’t have to know everything about Bitcoin, nobody knows everything about Bitcoin. The question is, do you pretend you know when you don’t? And if you do you’ll be exposed.” Troy Cross is a Professor of Philosopher and Fellow at BPI, & Shaun Connell is Executive VP of Power at Lancium & energy trading expert. In this interview, we discuss the evolution of the Bitcoin mining and energy debate: how Bitcoin mining has weathered the storm of FUD over its energy usage to become a tool that fixes an ever-increasing number of energy-related issues. - - - - Roy Sheinfeld, CEO of Breez, last week used the following analogy to highlight expanding knowledge of the Lightning Network’s application: "The first industrial use of steam engines was to pump water out of mines, but nobody talks about that because the engines were stationary and hidden in the dark. Three generations later, inventors started adding wheels to the engines. Setting that power free and bringing it into the light made everyone take notice, and that’s when steam changed everything." The same applies to the whole Bitcoin ecosystem, particularly in relation to Bitcoin mining. Since 2019, there has been a growing realisation that Bitcoin provides a multitude of benefits to producers, operators and consumers of energy. There are also an increasing number of ancillary applications being realised in other areas. So, is it time for Bitcoiners to become more emboldened in their advocacy of Bitcoin mining? There’s an available body of evidence showing the important role that Bitcoin mining is playing in supporting Texas’s energy grid. It is right to state that some of the resultant conclusions seem counterintuitive i.e. how can an energy user assist with energy supply? However, it merely takes an open mind, a willingness to question, and a capacity to learn, to realise that Bitcoin mining provides an important societal good. Paradigm shifts are always met with suspicion. The issue is we’re on the right side of history. Therefore, should we use someone's views on Bitcoin mining as a test of their intelligence and humility? Is it time to be more assertive in responding to those who refuse to believe their eyes and ears? After all, they are the ones who refuse to be humble. - - - - This episode’s sponsors: ----- | |||
| 17 Feb 2023 | The Frontier of Bitcoin Mining with Lee Bratcher | 01:16:45 | |
“This industry has so much potential to be a demand side battery for any grid (but especially the Texas grid, because we have so much of it and we have so much stranded energy that because of transmission congestion) that it could be revolution — it could do for the Texas grid what batteries will do for grids in the Northeast or in Western Europe.” Lee Bratcher is President of the Texas Blockchain Council. In this interview, we discuss the important work of the Texas Blockchain Council in educating decision-makers and providing a link to Bitcoin businesses, which has helped Texas to become a global leader in Bitcoin. We also talk about the risks of introducing any form of CBDC. - - - - Texas has become the US’s home of Bitcoin, maybe the global home of Bitcoin. A state whose motto is friendship has extended its hand to those seeking to mine and develop Bitcoin. Why is this? Texans are independent, hard-working, freedom-loving people. As our guest Lee Bratcher states on the show: “The ethos of Texas just matches up with the ethos of Bitcoin.” But, there is a more pragmatic reason why this has happened: Texas’s economic history shows a state that embraces opportunity. And with Bitcoin mining, we are seeing perhaps one of the biggest opportunities to present itself to energy grids. Governments across the world are seeking to transition to more renewable and volatile energy sources. And, as we have seen, Bitcoin mining provides a range of tools to help grids in this transition. Texas’s grid operator, ERCOT, has embraced Bitcoin mining, and as such, it is reaping the benefits. Bitcoin mining is making the Texas grid more resilient to peak demands, it is facilitating the build-out of stranded energy sources, and could potentially help keep energy prices low. A welcoming regulatory landscape and collaborative approach to planning are resulting in Texas working towards being the home for 20-25% of the global hashrate. But, Texas has not woken up to the utility of Bitcoin mining on its own. The fact the state has a dedicated Bitcoin advocacy group is a critical factor in this story. The Texas Blockchain Council was set up to make Texas the jurisdiction of choice for Bitcoin. To that end, it educates lawmakers, acts as a conduit between the state and Bitcoin companies, and actively defends Bitcoin against attacks from senators in DC. It’s another inspiring and motivating Bitcoin story. - - - - This episode’s sponsors: ----- | |||
| 20 Feb 2023 | Economics in One Podcast with Ben Prentice | 01:46:13 | |
“It’s the idea that you use logic to come to the wrong conclusion, and because you are using logic, you think you came to the right conclusion…what Henry Hazlitt argues in this book, Economics in One Lesson, is that there’s this network of logical fallacies that mutually support each other and obscure the truth.” Ben Prentice is a producer of What Bitcoin Did and co-creator of WTFhappenedin1971.com. In this interview, we discuss ‘Economics in One Lesson’, the seminal work by Henry Hazlitt. It’s as relevant today as it was when it was first published in 1946. We also talk through the disruptive force of AI, and, of course, we cover Bitcoin. - - - - Henry Hazlitt was an American journalist who reported on economics and business between 1913 and 1969 for publications such as the Wall Street Journal, Newsweek and the New York Times. He is credited with introducing the ideas of Austrian economics to the English speaking world. But his legacy was burnished through his 1946 book ‘Economics in One Lesson’. Hazlitt’s ideas have been acknowledged as being foundational in the development of neocolonialism in the United States. ‘Economics in One Lesson’ has been praised since its publication by numerous prominent economists opposing Keynesian economics. But it was it’s impact on decision makers such as Ronald Reagan that set it apart from other works. And it is still having an impact today. Hazlitt’s book has resonated with different audiences for over 75 years because it developed arguments that have remained timeless. Two central ideas have as much relevance today as they did in 1946: firstly, policymakers underestimate the cause and long-term effect of policy decisions; secondly, many economic beliefs are based on logical fallacies. It is a work that strips away the complexity of economics to explain it in clear and recognizable terms. The question should therefore be why we live in a world that seems to be making the same mistakes that formed the basis of Hazlitt’s original work. Part of this is because the underlying monetary system is inherently weak. But, it is also because decision-makers, either through ignorance or arrogance, believe that they can allocate capital better than the market. This is why Hazlitt’s work remains important: we must remember the past or be condemned to repeat it. - - - - This episode’s sponsors: ----- | |||
| 22 Feb 2023 | Scaling Bitcoin Culture with Amanda Cavaleri | 01:18:24 | |
“If I were a decision maker in the US I would probably want to figure out how to embrace Bitcoin to make the US dollar stronger. I think that’s a pretty smart move. We’ll see if that happens.” SHOW DESCRIPTION Amanda Cavaleri is a Bitcoin entrepreneur and board member of the Bitcoin Today Coalition. In this wide-ranging interview, we discuss the upcoming Bitcoin Ski Summit Amanda is organizing, how Bitcoin can help the United States, whether Bitcoin should be radical or conservative, the importance of values in Bitcoin culture, and the promise of Nostr. - - - - Amanda Cavaleri is a long-time friend of the show, and one of the most genuine and hard-working people within Bitcoin. Amanda has numerous interests across Bitcoin, from investments to mining, from advocacy to education. As a veteran Bitcoiner, Amanda is able to have a wider perspective on the important value Bitcoin brings to society beyond its immediate investment potential. We discussed the unremitting importance of Bitcoin to privacy, and of privacy to democracy. With the rise of China, having a tool outside of the purview of the state is becoming increasingly important. Furthermore, Bitcoin has the potential to support global economic growth as we transition from the dollar as a reserve currency: Bitcoin has the potential to be neutral global money that can enable efficient cross-border payments in an increasingly multipolar world. We talked about despite Bitcoin being an apolitical tool, there is significant work required to get it to resonate within the Washington bubble. Amanda set out the educational work, network building and soft permeation of DC being undertaken by the Bitcoin Today Coalition. This is a slow but vital advocacy process needed to lessen the risk Bitcoin’s development within the United States is kneecapped by ignorant legislators. Finally, we covered the importance of Bitcoin’s culture. Whilst ‘number goes up’ worked to gain rapid interest over previous cycles, a values-based ideology is showing itself to be critical in both widening Bitcoin adoption and defending against attacks. But culture obviously affects the internal workings of Bitcoin as much as its presentation externally. Therefore, the current debate around how radical Bitcoin should be may perhaps become a significant area of debate in the next year. - - - - This episode’s sponsors: ----- | |||
| 24 Feb 2023 | Grayscale, the SEC & Genesis with Michael Sonnenshein | 01:22:42 | |
“A lot of regulators all around the world are looking to see how US regulators treat Bitcoin…I would say that anybody who is broadly involved in the crypto space, you want to see Grayscale win this lawsuit.” Michael Sonnenshein is the CEO of Grayscale. In this interview, we discuss Grayscale’s lawsuit with the SEC, Genesis’s lending practices and bankruptcy, GBTC and the intercompany relationships at DCG. - - - - The Grayscale Bitcoin Trust (GBTC) brought institutional investment into Bitcoin and helped Bitcoin to mature. Launched in 2013, as a subsidiary of the Digital Currency Group (DCG), it was devised as an official means of gaining exposure to Bitcoin for high-net-worth entities. Many, including Grayscale, have sought to provide a spot price ETF, but, in the absence of SEC approval, GBTC has served as an attractive alternative investment vehicle. In November 2021, GBTC had over $43 billion AUM. GBTC is one of many funds Grayscale provides covering a plethora of digital assets, including Ethereum, Solana, Zcash and Bitcoin Cash. However, GBTC is the most dominant: at this moment GBTC represents nearly 75% of Grayscale's total AUM. With its 2% annual fee based on Bitcoin’s spot price, GBTC is a valuable part of Grayscale and DCG's portfolio. At the current Bitcoin price, GBTC commands approximately $420m in fees. Grayscale is currently dealing with some major issues. Since early 2021 GBTC has been trading below its net asset value (NAV). This discount is currently hovering around all-time lows at 46%. GBTC holders cannot redeem their shares for the underlying asset. They have to sell their shares in an open market and shoulder this discount. Those not forced to sell feel effectively trapped. Grayscale is subject to a number of investor lawsuits, and an activist campaign seeking to unseat Grayscale as the manager of GBTC. Concurrently, Grayscale is suing the SEC over the latter's refusal to convert GBTC into an ETF. The mechanisms of an ETF allow for arbitrage trading keeping the share price aligned with NAV. This is Grayscale’s strategy for reducing the current GBTC discount. Grayscale has also been caught up in the bankruptcy of the crypto lending firm Genesis, another subsidiary of DCG. According to a Financial Times report, DCG is selling shares in Grayscale funds, “at a steep discount” to pay back Genesis creditors. There are more fundamental questions about the role of Genesis’s lending. According to Bitcoinist, the failed hedge fund Three Arrows Capital took a $2.36 billion loan from Genesis backed by 17 million GBTC shares. - - - - This episode’s sponsors: ----- | |||
| 27 Feb 2023 | Do Ordinals Make Bitcoin Better or Worse Money? With Rob Hamilton | 01:38:00 | |
“Bitcoin exists. Any sort of moralistic lens of perspectives of what it should be doing is a conversation, but Bitcoin works as this anarchic system where there’s no one in control, and everyone gets to use it however they want; and if people can’t do that the project fails.” Rob Hamilton is a co-founder and the CEO of AnchorWatch. In this interview, we discuss ordinals and ordinal inscriptions: what they are, how they work, what risks and benefits do they present to Bitcoin, how would we mitigate negative impacts, and how the rest of the ecosystem is responding. - - - - Bitcoin’s use cases grow every year. A new version of money. An international payments rail. A tool to build out stranded energy, mitigate methane emissions and stabilise energy grids. And now, a decentralized immutable repository for images, audio, video and code. Ordinal inscriptions have been popularised as Bitcoin’s answer to NFTs, but that framing significantly underplays the opportunities and threats of this burgeoning functionality. Ordinal inscriptions have been made possible via a series of Bitcoin upgrades going back to SegWit, and additional software, the Ordinal protocol, developed by Bitcoiner Casey Rodarmor. Rodarmor’s motivation was to make Bitcoin fun. But it has sparked a fierce debate about the nature and purpose of Bitcoin. In short, if Bitcoin is the new version of money, should all other uses that impact this primary use case be excised? Philosophically, can a decentralized anarchic system without a fixed mission statement have rules of use beyond what is technically possible? Or, does the hard-won trajectory for Bitcoin that emerged from the blocksize wars set a clear enough ideology of what Bitcoin is and isn’t? Whilst technically, what can actually be done to counter the ordinal impact? Will this require another fork, or are there softer mitigations? And what will be the cost to the network of such changes? The flip side to this debate is the positive impact ordinal inscriptions are having on Bitcoin transactions. Miners are at last seeing a use case that is, at last, bringing value to transaction verification. Whilst it is leading to questions about the blockchain being bloated is this actually a good thing in that it accelerates the market determination of true transaction value on the base layer? Whatever the outcome will be, such discourse is a natural consequence of having a decentralized network without any rulers. Vigorous and healthy debates have galvanised and strengthened the Bitcoin protocol since its inception. Long may it continue. - - - - This episode’s sponsors: ----- | |||
| 01 Mar 2023 | The Future of Bitcoin Banking with Eric Yakes | 01:42:23 | |
“The whole point is that we have enough self-custody to where the system remains permissionless so that we don’t turn into digital gold 2.0. That’s the whole point. Maybe that’s 20% of all Bitcoin, maybe that’s 30%. I have no idea. But it needs to be as much as we could possibly make it based on the consumer utility trade-offs.” Eric Yakes is the author of ‘The 7th Property’. In this interview, we discuss how a Bitcoin native banking system could evolve, predicated on a practical vision where not everyone will be able or willing to self-custody. Eric has theorised how Fedimints may form the basis for a new digital age of free banking, and the risks and opportunities this would present. - - - - As Bitcoin is a new form of money, then it stands to reason that it could become the basis for a new global monetary system. Yet, it is not a certainty that this will happen. And how it may manifest is far from settled. Eric Yakes is one of the leading thinkers on this topic. His ideas around how Bitcoin banking may develop are evolving to respect the central tenets of Bitcoin’s ideology, whilst making pragmatic allowances for real-world constraints. The principal issue for Bitcoin banking is the provision of custody. 2022 gave everyone clear grounds to promote cold storage. However, with widescale adoption, there will still be significant demand for third-party custody solutions. Therefore, one must consider which custody solutions maximise trust. Fedimint provides such an alternative where trust is federated, with the intention that this federation is a known community. Fedimint is not only a custody solution, it is also a means for issuing value. A Fedimint can issue Ecash against the held Bitcoin. This Ecash acts as a bearer instrument that can be stored on mobile phones, with the privacy characteristics of physical cash. Ecash could also be transferred via the Lightning Network. This opens up the possibility of a quantum of decentralized federations developing and operating akin to the free banking era of the 19th century. There are issues. Third-party custody in any form involves risk. There will be occasions when trust is broken, Bitcoin is lost and innocent people are affected. There are also risks associated with a rise in fractional reserve banking, and questions over the issuance of credit through such systems. However, as Eric Yakes asserts, if Bitcoin is to be more than Gold 2.0 and become the basis for a global monetary system, then these are risks that need to be faced. - - - - This episode’s sponsors: ----- | |||
| 03 Mar 2023 | WBD Live - NYC: Junseth on Ordinals with Junseth | 01:29:32 | |
“Bitcoin for the first time gives you the sovereign and particular right to your finances to spend, to trade, and that’s something we didn’t know that the government couldn’t take away from you. Bitcoin is the manifestation of the God-given right to have your value.” Junseth is an OG Bitcoiner and the former co-host of Bitcoin Uncensored. In this live interview, recorded at Pubkey in New York, we discuss the latest Bitcoin phenomenon - ordinals. We also talk about the philosophy of Bitcoin: what it’s for, what it can be, and how it’s still the only blockchain that adds value to society. - - - - This was the second ever live What Bitcoin Did show, hosted at the excellent Pubkey in New York City. And, for a live show, we needed a combination of an OG Bitcoiner, with strong opinions, who could sing…luckily Junseth was available! Junseth is obviously a Bitcoiner who’s happy to tackle hot topics. So we began by discussing the good and the bad of ordinals: it has certainly strengthened Bitcoin in terms of node usage and transaction fees, but are inscriptions the best use of the blockchain? And, as Junseth espouses, should we get too concerned about tests of Bitcoin’s anti-fragility? Further, we talked about what, for an OG, Bitcoin represents both today and in the future. Can Bitcoin fix everything? If not, what is Bitcoin’s lane or lanes? How early are we? Why people need to shitcoin before finding Bitcoin is the only blockchain. How it strengthens American democracy. And what it will take for Bitcoin to change the world. Finally, Junseth took some excellent questions from the crowd. He covered economic degeneracy, Bitcoin’s limitations, how Bitcoin supports democracy and American values, and whether we should be hodling or spending Bitcoin. He would have given us golden material on every subject under the sun if we’d had the time! We were very grateful to have a sell-out and supportive crowd, and thanks again to our amazing hosts Pubkey! It’s been a long time since we did a live event, but there will definitely be more to come this year. In fact, we have 2 shows scheduled: in Bedford on April 14th and in Miami on May 17th. - - - - This episode’s sponsors: ----- | |||
| 06 Mar 2023 | How the Fed “Went Broke” with Lyn Alden | 01:15:37 | |
“What they did back in 2008…they said, ‘Well, we’re going to create a tonne of new base money, we’re going to buy some of those assets to reliquefy the system.’ And so, it’s not an exaggeration to say it’s essentially like a Ponzi scheme, it’s something that has to keep growing in order to function.” Lyn Alden is a macroeconomist and investment strategist. In this interview, we discuss her latest article: How the Fed “Went Broke”. Lyn explains how for the first time in modern history the Federal Reserve is operating at a loss. We talk about the ramifications in terms of continuing high inflation, the bankruptcy of government agencies, and the impacts on the Fed’s independence. - - - - Bitcoin was born when the global economic machine was showing signs of a terminal illness. Since then, governments around the world are trying to keep the system alive, using measures that will in fact hasten its demise. Due to misaligned political incentives, greed and ignorance, the world’s economy is now entering an unprecedented period of serious economic trauma. Government bailouts are not new. Alexander Hamilton in 1792 used federal funds to prevent the collapse of the securities market. However, it was the use of Quantitative Easing (QE) to prop up the financial system during the Global Financial Crisis (GFC) when the Rubicon was crossed. The Fed bought over $2 trillion of commercial bank assets in 2008/9, paid for through an increase in the monetary base. The main problem with the GFC was governments became tolerant of the new drug of choice: QE leading to an erosion of market discipline. QE3 started in late 2012, was nicknamed “QE infinity”. It result in $4.5 trillion of commercial bank assets being bought by the Fed. QE4, in response to the Covid pandemic, resulted in the Fed purchasing another $2 trillion of assets. Since 2008, the monetary base in the US has increased by 750%. The inevitable result is inflation. The response by central banks is to increase interest rates, a tool that doesn't apply to the problem at hand: unsustainable levels of debt. Higher interest affects the cost of their liabilities, such that they are now, for the first time ever, in negative equity. They are “broke”. What the markets know but politicians aren’t willing to accept is that this is a new paradigm. The UK Prime Minister Liz Truss was ousted after only 49 days when markets decided unfunded tax cuts with debt to GDP over 100% were irresponsible. The growing realisation is that budget deficits need to be cut. Smaller governments are likely whether people want them or not. - - - - This episode’s sponsors: ----- | |||
| 08 Mar 2023 | What Does Bitcoin Actually Fix with George Kaloudis | 01:18:41 | |
“I think money is an instrument for change, but it’s not the change itself. And it’s a very powerful tool, and it depends on who wields it and what kind of change gets implemented. If a bad person has good money to make change, they’re going to make bad changes. Throwing good money at bad doesn’t do a damn thing.” George Kaloudis is a senior research analyst and columnist for CoinDesk. In this interview, we discuss the validity of Bitcoin ideology. Can it replace governments? Does it promote individualism? Is Bitcoin’s distribution fair? Can Bitcoin fix the world? We unpick popular Bitcoin maxims to sift genuine slogans of change from the hyperbolic froth. - - - - Bitcoin maxims are powerful, persuasive and effective: “vires in numeris”, “don’t trust, verify”, “not your keys, not your coins”. These slogans have been the maximalist rallying cries used to champion and defend sound investment principles through many cycles. They have been, are, and will continue to be the bedrock supporting Bitcoin’s ongoing resilience. Meme theory works. However, there are some maximalist mantras that are counterproductive. The “Bitcoin fixes this” slogan is perhaps the one that is more lazily applied than any other. Bitcoiners know that the genius of its design is that it can rectify long-standing weaknesses within the current fiat system. It can make banking fairer for all. Bitcoin, therefore, has the power to fix a lot within our society. But, it does not fix everything. Far from it. The problem is that “Bitcoin fixes this” has been applied to all manner of issues, which are manifestly not fixed by the presence of Bitcoin. This causes the power of the original slogan to wane, and, calls people to question the validity of other maximalist propositions. Rather than act as an effective rallying cry, this slogan has become a signpost of hyperbolic froth. It is therefore productive to go back to first principles and query what it is that Bitcoin actually fixes, or, helps to fix. And then, question the other assumptions that people make about Bitcoin. Whilst Bitcoin has tremendous potential to help create a new and fairer system, real change still requires human agency. Bitcoin will fix very little unless we all learn to work, interact and collaborate in new and sustainable ways. Bitcoin helps us fix this. - - - - This episode’s sponsors: ----- | |||
| 10 Mar 2023 | Building a Bitcoin Community with Thomas Pacchia | 01:05:15 | |
“It’s a special thing when somebody comes in and they pay in Bitcoin. And they go through sort of the ritual of getting out the separate POS and it’s the Zeus wallet, which has an awesome user interface. And you’ll have people a couple of barstools down just sort of looking over, like ‘What the fuck is that?’” Thomas Pacchia is a Bitcoin entrepreneur and the co-owner of Pubkey, a Bitcoin bar in New York City. In this interview, we discuss how a desire to revive a local bar after Covid inspired the establishment of Pubkey, its importance as a focal point for Bitcoin in New York City, and how its success could inspire more Pubkeys in more cities. - - - - The leisure industry has taken a battering during Covid, and many businesses have fallen by the wayside. These places are hugely undervalued: bars in particular are relaxed locations that can cement neighbourhoods, providing spaces for people to interact outside of the pressures of work and family. And once they’re gone, that’s usually it. However, bars don’t only work for localised communities, they can act as a haven for disparate communities bonded by a shared passion, heritage or sexual orientation. Heavy metal bars, sports bars, Irish bars, gay bars: these can be vital meeting places for those seeking like-minded people, particularly in an atomised international city. Well, now you can add Bitcoin bar to the list. Whilst many of us were slowly trying to make sense of the post-Covid world, Thomas and his wife decided to be the change they wanted to see. They saw a chance to take on a local dive bar and create a haven for Bitcoiners in New York. In a few short months, they have turned that pipe dream into a reality. It is now the go-to venue for Bitcoiners in the Big Apple. Built from the principle that it must first and foremost win its reputation for service, food and ambience, it has also forged a strong and unique Bitcoin-centred character. It hosts regular BitDevs, mining and Lightning meetups. It also hosts events such as live podcast shows! As a result, it has become a very popular haunt. And there are plans for other Pubkeys in other cities. So, what’s the secret sauce? As a regular punter put it in a recent Bloomberg article about Pubkey “I like drinking and I like Bitcoin”. Simples. - - - - This episode’s sponsors: ----- | |||
| 13 Mar 2023 | Beginners Guide Part 1/3 - Why Bitcoin? With American HODL | 00:27:06 | |
“The way in which you think about it will not be the way in which you think about it in 10 years time, but you are involved in something here that is going to be one of the defining things you do in your life; this will be the thing that your grandchildren ask you about.” American HODL is a Bitcoiner who has been promoting the innovation for over 8 years. In this interview, we discuss why is Bitcoin important: what makes it an improved version of money, why society needs it, how it improves inclusion and thereby the world, the proof we have that Bitcoin can work, and how the world will look in the future with and without Bitcoin. - - - - This is the first in a series of special What Bitcoin Did shows aimed at opening people to the basic principles that underpin Satoshi Nakamoto’s innovation. Bitcoin has been in existence for 14 years. Whilst the adoption rate is tracking other paradigm-shifting technologies like the internet, we are still very early. Most people still don’t own Bitcoin. And, for those that do, a lot are still to fully properly grasp its properties and potential, and therefore understand why it’s important. The majority of people are yet to comprehend Bitcoin’s capacity to better individuals and the world for a number of reasons. It is an innovation rivalling the disruptive power of any technology that has come before it. Those who grasp it are still in awe of its elegant and revolutionary design. But, because it risks upending the balance of power between individuals and the state, it rarely gets a fair representation in the mainstream media. Further, Bitcoin touches on many fundamental tenets of modern society. Firstly, it is a new form of money, purposefully outside of the scope of centralized control. So, to understand Bitcoin, one must understand the principles of money and trade. Secondly, it has been developed to account for the manifest risks of increased surveillance of individuals in the electronic age. So, to understand Bitcoin, one must understand why privacy is the bedrock of democracy. Bitcoin also requires an appreciation of cryptography, the internet, game theory, economics, politics, philosophy, and energy. It’s the analogy of peeling an onion, where awareness at one level enables the next layer to be peeled away revealing hidden characteristics. Someone on this journey of discovery is said to be going down the Bitcoin rabbit hole. It takes time and effort. Those embedded within the Bitcoin community know that understanding Bitcoin is a process. But further, they know the profound awakening that comes to those who open themselves to it. The period of time before you properly understood Bitcoin will be manifestly distinct from the period of time after. This is when the hyperbole from those advocating for Bitcoin suddenly seems understated. Asking why Bitcoin is important is the start of that journey. - - - - This episode’s sponsors: ----- | |||
| 14 Mar 2023 | Beginners Guide Part 2/3 - What is Bitcoin? With Harry Sudock | 00:23:50 | |
“Bitcoin is beautifully simple: from a mind-virus perspective there are only 21 million, what you own, you own, it’s yours, you’re in control. It puts the burden and the responsibility back on the individual, and therefore the opportunity rests on the individual, and so Bitcoin is money for people who are ready to take responsibility for their lives.” Harry Sudock is Chief Strategy Officer at Griid. In this interview, we discuss what Bitcoin is: specifically, on what ideological foundation was it developed, what problem was it designed to solve, how it solves that problem, and why is it the best technical solution for solving that problem. It’s a tl;dr of the basic technical features underpinning Bitcoin. - - - - This is the second in a series of special What Bitcoin Did shows aimed at opening people up to Bitcoin. In the first episode, we learnt that Bitcoin is a new form of money. In this episode, we discuss what functions Bitcoin performs, which differentiates it from other forms of money. We then discuss the technical innovations that enable it to achieve these functions. In essence, this show focuses on what Bitcoin is. Bitcoin is rooted in the cypherpunk movement that developed in the late 1980s centred on the US. As digital technology started to proliferate, its capacity to track and record digital activity became readily apparent. Concerned computer scientists, mathematicians and cryptographers acted to develop systems aimed at protecting individual privacy, despite a concerted government that sought to control the development of privacy-providing technology. The cypherpunks movement included extensive work by many to develop anonymous digital cash. But, despite some incredible breakthroughs, none of these efforts had any material success. It was not until the pseudonymous Satoshi Nakamoto brought numerous strands of all this work together that a viable anonymous and uncensorable digital currency was born. The innovation centres on four key pillars: a clear and immutable monetary policy ensuing both scarcity and transparency; a proof of work consensus mechanism that provides decentralised security to the system; a difficulty adjustment, which ensures the issuance rate is highly predictable; and finally, its design considerations aimed at prioritising decentralisation. To the uninitiated, these four key pillars may seem as merely interesting innovations. But, once comprehended, the effectiveness and elegance of Bitcoin’s design is truly breathtaking. The software has worked, day in and day out, for over 14 years, without being hacked. And, it’s all without a leader, or a clearing house, or a central committee dictating policy. Quick, uncensorable and private global settlement. By open-source code. Satoshi Nakamoto is the genius of our times. - - - - This episode’s sponsors: ----- | |||
| 15 Mar 2023 | Beginners Guide Part 3/3 - How to Buy & Hold Bitcoin with Dan Held | 00:29:10 | |
“With Bitcoin, we’re finally free. We’re finally free with our money to do whatever we’d like with it…so if a government becomes onerous, and they start to crack down on transactions or crack down on different types of races, religions, etc., you can take your money and you can leave. And that ability, that freedom, is truly what it means to be a human, it’s truly to be financially free.” Dan Held is a Bitcoin educator and marketing advisor at Trust Machines. In this interview, we discuss how to get involved with Bitcoin: how to buy and store Bitcoin, how to spend Bitcoin, how to avoid scams, how to engage with the community, and the best Bitcoin-related books, podcasts and Twitter feeds to follow. - - - - This is the third in a series of special What Bitcoin Did shows aimed at opening people up to Bitcoin. In the first episode, we learnt that Bitcoin is a new form of money. In the second episode, were learnt what Bitcoin is and its technical features. In this episode, we discuss how to buy and hold Bitcoin. To those new to Bitcoin it can feel overwhelming. Its ideological and technical basis can seem impenetrable. Actually acquiring Bitcoin is another hurdle that requires an appreciation of new concepts and implementing disciplines distinct from other types of investment. But, the technical skills and behaviours required are actually well within the capabilities of the majority of people. To invest one must first learn about changing your time preference. Bitcoin is about discipline over a longer time frame. Volatility exists, but Bitcoin is volatile to the upside. In contrast, other over-hyped digital assets advertised as offering better returns hide extreme downside risks. Those who stay humble, hold (referred to as hodl) Bitcoin and avoid the human desire for quick returns, are best placed to benefit over the long term. Then one must appreciate the risks associated with custody. Most people are overly confident in third parties keeping their assets. But, in both traditional finance and cryptocurrencies, there are many examples of such trust being broken. There is a famous Bitcoin mantra: “not your keys, not your coins”. In essence, if you don’t hold your Bitcoin, you don’t own the Bitcoin. Taking ownership of your Bitcoin means having to be disciplined in how you secure that Bitcoin. But again, these are new behaviours to attain, not difficult skills to learn. And they are reinforcing. Self-reliance is what Bitcoin ideology is predicated on. It is part and parcel of becoming a good Bitcoiner. Further, these habits will naturally bleed into other aspects of your life. Becoming a better Bitcoiner is synonymous with becoming a better person. - - - - This episode’s sponsors: ----- | |||
| 17 Mar 2023 | Bank Runs, Bailouts & Bitcoin with Caitlin Long | 01:03:51 | |
“The Fed’s going to end up having to expand its balance sheet again, to proverbially print money, in order to provide the extra cash for the banks to be able to meet the demand deposit withdrawal; the banks should have been sitting on that cash all along.” Caitlin Long is the Founder and CEO of Custodia bank. In this interview, we discuss the events that have led to three banking failures within a week, one of which saw the biggest bank run on record. We talk about anti-crypto coordination involving the US government, the inherent instability of the traditional finance system and how this is another signal that the game is up. - - - - As the saying goes, to lose one bank may be regarded as a misfortune, to lose two banks looks like carelessness. How should we regard the loss of three banks within a week? To the uninitiated, this may look like a contagion, but it’s the impacts of two different systemic problems affecting two different markets: crypto and fiat. What it lays bare is the hypocrisy and instability of the traditional financial system. The failures of Silvergate and Signature are rooted in the 2022 implosion in crypto. Precipitated by the collapse of Luna, we all know what followed: a nest of over-leveraged, hypothecated and fraudulent investments that fell like a house of cards. Who knows when it will end. Regardless, more recent failures seem to have been expedited by coordinated government action. The obvious signal from the levers of power is that crypto is bad, and traditional finance is good. But what should have been an opportunity for the government to present the perceived weaknesses within digital asset markets, was significantly undercut by the biggest bank run in history: Silicon Valley Bank’s customers were withdrawing more than $1 million per second for 10 hours straight a little over a week ago. The sorry mess is actually a clear vindication of Bitcoiners' assertions that both crypto and fiat are both fundamentally unstable. The search for yield is endemic. The management of risk is too often criminally deficient. The argument is that narrow banking (full reserve banking) will suck deposits from risky banks, making risky banks even riskier, increasing systemic risk. However, the system is becoming increasingly dysfunctional. Moral hazard seems endemic. Increasingly large bailouts are being used to keep the game going. The aim is to maintain the illusion that the financial system is stable. It is anything but, and everyone knows it. We’re entering a period on unknown risks. The time to change the rules of the game has long passed. - - - - This episode’s sponsors: ----- | |||
| 20 Mar 2023 | Bitcoin’s Operation Chokepoint with Doomberg | 01:15:24 | |
“Ejection from the banking system can be random. Happens for political reasons in the US all the time. It’s rarely reported about. And, in a way, it’s more devastating than being on probation for having been convicted for something, because not being able to bank in 2023 is akin to not being able to function in society.” Doomberg is an anonymous collective producing the world’s most popular financial substack. In this interview, we discuss coordinated action against the crypto industry being undertaken with limited congressional approval or oversight. We talk about historical precedents, what this could mean for Bitcoin and Bitcoiners, and why we need a financial bill of rights. - - - - Mark Twain once said that “History never repeats itself, but it does often rhyme.” Therefore, Bitcoiners should be extremely wary of the recent precedents of a ruling US administration being willing to de-bank business verticals antithetical to certain political beliefs. In 2011, the Obama administration targeted selected online poker businesses. In 2013, the same administration used the DoJ to lean on banks doing business with firearm dealers and payday lenders. The problem is simple: a legitimate business and/or technology is kneecapped by a ruling body for subjective political reasons. Public-private institutions, such as banks, are lent on to hamper the functioning of businesses earmarked as being problematic. The fundamental issue is the methods applied are anti-democratic. There is no open debate or examination. A decision is made behind closed doors, and people, institutions and businesses are pressured to comply. We are currently witnessing coordinated illiberal action against crypto-aligned companies. The intent is clear. Yet, there has been no debate. And whilst Bitcoiners may gain comfort from the actions being taken against crypto, the problem is politicians haven’t revealed their full intentions yet. It is highly likely that Bitcoin is also in their crosshairs. As Doomberg asserts “eventually they'll come for your Bitcoin too.” What this lays bare is the willingness of those in control to de-bank perceived enemies. De-banking at face value may seem like an annoyance, but it actually strips an individual of agency. A person without access to the financial system is effectively neutered. It is a malevolent, silent and effective means of control. And, the methods applied a decade ago are being reapplied to control first crypto, and then Bitcoin. Be aware, be prepared, and raise hell. - - - - This episode’s sponsors: ----- | |||
| 22 Mar 2023 | Why Progressives Need Bitcoin with Trey Walsh | 01:09:27 | |
“We’ve politicised everything. Problems aren’t problems anymore. For the left: what is their approach? For the right: what is their approach? And it’s because the political system is broken. And obviously, most of the listeners and we know it’s also the financial system is completely broken.” Trey Walsh is a nonprofit director and progressive Bitcoiner. In this interview, we discuss the problems facing Gen Z: climate change, high education and housing costs, wider economic problems constraining opportunities, the erosion of democracy, and social media-induced mental health challenges. We talk about why Bitcoin could provide hope to this hopeless generation. - - - - Gen Z is suffering. They have been excluded from the growth in asset prices over the past few decades, but are facing the dire consequences of spiralling debt on the provision of public services. They are being excluded from discussions about climate change, yet they will be expected to front the response in the coming decades. They are being told they are too woke, ignorant and lazy by those under whose watch democracy has been allowed to crumble. And whilst there is a dearth of ethical and inspiring leaders charting a path for this disillusioned generation, there is a significant amount of vitriolic noise in the media, exploiting the fear in return for eyeballs, clicks and likes. Gen Z’s hopelessness is manifesting itself in a mental health crisis: compared to other generations Gen Z has lower feelings of emotional well-being. The response of older generations is that Gen Z-ers are snowflakes - they need to toughen up. This is cruelly counterproductive as Gen Z is least likely to seek help: they are 3 times more likely to consider suicide than other generations. Into this void of despair comes Bitcoin. There has been a timely reappraisal of the “Bitcoin fixes this” meme over the past year. Obviously, Bitcoin is not a panacea for all of the world's ills. But, it is a technology that is providing hope to those developing material mitigations to some of the most deep-rooted problems in our society. Trey Walsh strongly believes that Bitcoin provides hope for the environment, for a more socially-just economic system and for democracy. It offers this as politicians and decision-makers continue to peddle obvious self-serving fantasies. As Trey asserts, “Gen Z deserves the opportunity to be presented with the stories of hope in Bitcoin.” This is why we should be working for Bitcoin: it provides “hope for a generation found hopeless.” - - - - This episode’s sponsors: ----- | |||
| 24 Mar 2023 | The Economics of Privacy with Max Hillebrand | 01:22:55 | |
“That meatspace layer between the computer and your brain is unencrypted…if this last mile is not encrypted, then all of the securities that we can gain in cyberspace are null and void. Now, because you type in your 24 words, and the camera picks it up, all of a sudden, your super awesome anonymous money is no longer anonymous nor secure. And that’s a really, really big issue.” Max Hillebrand is an economist and open-source entrepreneur who runs Agora Towards Liberty. In this interview, we discuss fiat money’s fundamental weaknesses, the teachings of Austrian Economics, the importance of privacy, and how nano cameras mean privacy technology will need to keep evolving. - - - - Whilst the Bitcoin innovation was primarily predicated on the technical needs for enabling permissionless and uncensorable digital peer-to-peer transactions, its development was heavily influenced by the Austrian school of economics. At its root, Bitcoin is tied to the ethics of money production, where money production should be decentralized and not subject to the whims of a central authority. The long-held fear of Austrian economists was that centralized control of money production would result in monetary inflation: governments would be unable to resist the temptation to print money as quick fixes to crises. This obviously impacts the value of the money being inflated, violating one of the core principles of money to be a reliable store of value. The problem for governments, as we’re seeing, is that the power to print money becomes an uncontrollable force. Despite the inevitable fragility of fiat currencies, an alternative sound monetary system can hasten the collapse of fiat currencies during periods of loose monetary policy. This incentivises governments to constrain or ban access to such alternatives. See Executive Order 6102. This means that privacy for such alternatives is paramount. This is why Bitcoin privacy is vital. Because, when fiat currencies collapse, governments will come for people’s Bitcoin. - - - - This episode’s sponsors: ----- | |||
| 27 Mar 2023 | A Bitcoin Reality Check with Sergej Kotliar | 01:24:09 | |
“Do we want everybody in the world to be orange-pilled, and to share in all of the shared values of the Bitcoin community? And do we think that’s a realistic goal? Or do we want as many people as possible to use Bitcoin as a thing, even though they might not share in the values and just don’t give a fuck?” Sergej Kotliar is the founder and CEO of Bitrefill. In this interview, we discuss enabling Bitcoin circular economies, the mission of Bitrefill to be a financial empowerment company, the risks and rewards of using zero-confs for processing transactions, and the many different cultures and communities Bitcoin has spawned. - - - - Bitrefill is the largest crypto e-commerce platform in the world. It aims to facilitate the development of crypto circular economies. Whilst Bitcoin makes up a significant portion of their business, they are not a Bitcoin-only company. The mission is aimed at empowering people to undertake transactions on the internet that would otherwise not be possible for them. To that end, they pragmatically enable the use of Bitcoin, stablecoins, and a limited number of altcoins. The argument in favour of their strategy is compelling. Not everyone will respond to ideological arguments in favour of Bitcoin. Whilst there are many who will get drawn in by Bitcoin’s compelling theoretical roots, there are many others who are more concerned with prosaic day-to-day concerns. To maximise efforts to increase adoption we, therefore, need to appeal to a range of visions for Bitcoin. One important vision is focused on Bitcoin’s dry technical utilities. In our discussion, Sergej refers to the increase in the use of the internet and other technologies such as VPN. The widespread growth in the use of such technologies occurs as a result of a practical benefit being provided to users, not because adopters are seeking to mitigate a certain political or ethical concern. That’s not to say that selling Bitcoin as freedom money isn’t critical. Rather, we need to augment it with other strategies. - - - - This episode’s sponsors: ----- | |||
| 29 Mar 2023 | Why Mainstream Media is Failing Us with Izabella Kaminska | 01:16:15 | |
“The system is better off with a neutral asset that can price everything because, without a neutral asset, you have no pricing of anything…money must be neutral. And there is no neutral money outside of Bitcoin at the moment.” Izabella Kaminska is a journalist and founder and editor of The Blind Spot. In this interview, we discuss the failure of current mainstream journalism to cover subjects properly, why the destruction of the middle class is dangerous for democracy, the endemic problem of corruption in politics, and the need for an honest economic orthodoxy. - - - - In a lot of ways, we are in a gold age of media. There have never been so many different ways to consume news and opinion. This has been triggered by many factors: deregulation, technology and the atomisation of modern society. But, this also creates a significant number of problems. Principally, whilst there is more freely accessible information, it is now harder to discern fact from fake. The commercialisation of news has resulted in a race for clickbait: polarising reporting, increasing sensationalism, and relegating in-depth examination. Conversely, those organisations seeking to remain impartial such as the BBC, end up getting lost in a sea of conflicting missions. This has resulted in the BBC failing in its main mission to inform, educate and entertain. This is why new media brands are becoming important promulgators of information, increasingly at the expense of traditional media organisations. Amongst all the noise, people are looking for honest and relatable brokers of news. Further, people are craving more intellectually curious, nuanced and detailed analysis. This is the demand Izabella Kaminska’s The Blind Spot media venture is seeking to fill. A demand that mainstream media is unwilling or unable to satisfy. It’s hard: building a new brand takes time. But, without such content, groups on both the left and right will continue to mischaracterize issues that require understanding, trade-offs and proportionality. This will exacerbate the problems of polarisation and the veiled promotion of corporate interests. We need more journalists like Isabella willing to report the truth. - - - - This episode’s sponsors: ----- | |||
| 31 Mar 2023 | The Bushido of Bitcoin with Aleks Svetski | 01:37:18 | |
“Now that we’re in a time of peace - and we don’t need war anymore, and war is bad, and all that sort of stuff - we can do away with the whole warrior culture, the warrior ideology. And what do we become? We become fat slobs who don’t believe in reputation or morality or honour or any of that sort of stuff. And then the world decays and turns into shit.” Aleks Svetski is an entrepreneur, author and Bitcoin advocate. In this interview, we discuss his upcoming book “The Bushido of Bitcoin”. We cover the negative impacts of wealth, how Bitcoiners can mitigate such negative influences by becoming virtuous and disciplined, and why famous warrior classes are examples to follow. - - - - It seems like we’re entering another bull run. If it is sustained and we enter another cycle, Bitcoin’s price appreciation will be matched by reappraisals of the hyperbitcoinisation thesis. Can it replace the role of stores of value? Can it become a new global monetary reserve? Will it become a prevalent medium of exchange? Whilst all these questions are important, there one area of discussion doesn’t get adequately debated: what do Bitcoiners do if and when their place within society becomes elevated? Material personal benefits will be offset by newfound responsibilities. If they are to be the flag bearers of the change Bitcoin promises, how should Bitcoiners behave? Aleks Svetski tackles this issue in his soon-to-be-released book ‘The Bushido of Bitcoin”. Bushido is the samurai moral code. The word literally means “warrior way”. The samurai were Japanese nobility, and Bushido adhered them to follow various virtues (honour, honesty, self-control, loyalty, compassion, respect, righteousness and courage). It has had a lasting impact on Japanese culture. The importance of Bushido in the modern context is that elites now operate outside of any moral code. Post war liberal society has developed a system of norms, where expected behaviours have not been codified into law. Increasingly, elites have exploited these norms: if it isn’t illegal, then it’s okay. The roots of societal decay can be extrapolated from this situation. What is needed is a new moral code. It could be argued that Bitcoin maximalists have been developing such a moral framework for Bitcoiners. But, it is important to take a step back and understand the tenets of a moral code first before defining which actions should be encouraged or discouraged. In essence, what should the Bushido of Bitcoin be? - - - - This episode’s sponsors: ----- | |||
| 03 Apr 2023 | The Global Financial Crisis 2? With Lyn Alden | 01:06:40 | |
“The end game, that’s where it gets tricky, because there’s really no plan to ever stop the fiscal deficits. Debt to GDP is very, very high. And the world’s never been in this position before where we have an entirely Fiat-based system with debts this high. And especially because it’s not due to war. It’s due to accumulated promises over decades. So there’s no light switch, that can just change it next year.” Lyn Alden is a macroeconomist and investment strategist. In this interview, we discuss the recent run of bank failures: the causes, the impacts on the banking sector, federal support and exposure, and the likelihood of continued stress in the system. We also discuss a coming decade of recurring inflation and the emergence of reserve currency competition in a multi-polar world. - - - - “The vast majority of commercial banks that have ever operated in the U.S. have disappeared… the slow and steady decline in bank numbers continues.” This 2021 analysis by a St Louis Federal Reserve economist is as applicable now as then. Whilst the dramatic decline in bank numbers (from over 30,000 in 1921 to circa 4,000 now) mostly occurred in the 1930s, the past 3 decades have been characterized by a continued contraction that shows no sign of stopping. There are obviously inherent risks in banking centralization. As we have seen in recent years, governments are delegating more regulatory authority to private banks, bypassing democratic norms in the process. As banks require central bank permission to operate, they have no incentive to resist such demands. Nevertheless, banking centralisation is a symptom of a more fundamental issue: a fiscal spiral that’s creating an increasingly volatile economic environment. Unsustainable levels of debt are hampering central banks' ability to address growing inflation. Restraining economic growth decreases the ability of governments to reduce deficits. Further, the political cycle results in difficult but necessary policy decisions around fiscal constraints being deferred. The result is a yo-yo-ing of rate rises and bailouts. This increases the risk for all types of investment, even traditional safe havens. Banks struggle, and depositors run. A situation that begins with investors seeking safer banks, if not resolved, can lead to investors seeking to divest themselves of sovereign currencies. This is where capital controls kick in. The fundamental issue is that governments will seek to protect the system, not the individual. The denial of licences for narrow banks is part of the same toolbox that includes gold seizures and potential restrictions on Bitcoin. Prepare accordingly. - - - - This episode’s sponsors: ----- | |||
| 05 Apr 2023 | The Decentralisation of Bitcoin Mining with Braiins | 01:32:16 | |
“What is the end goal for V2? Is allowing miners to build the block themselves, but at the same time use the money aspect of pool mining…the money would be still the same, but the transaction selection would be distributed, therefore, more secure for the whole network.” Jan Čapek and Pavel Moravec are the co-founders of Braiins, a Bitcoin Mining company. In this interview, we discuss Braiins update to their updated Stratum V2 protocol software for pooled mining, how it helps solve Bitcoin mining’s centralisation problem, and why Braiins has given the Stratum software away to the community as open source. - - - - The development and growth in pooled Bitcoin mining has been a critical part of maintaining Bitcoin’s security. The synergies of scale were always going to affect Bitcoin as it transitioned into a more mature technology. However, centralisation is an existential threat to Bitcoin. Mining pools, started in 2010 by Jan and Pavel, therefore enabled small-scale miners to continue to gain value from limited hash power, which thereby strengthened the network's security. Nevertheless, just as the rise of the mega miners concentrated the hashrate, so did the rise of major mining pools. In February over 52% of the hashrate was controlled by just 2 mining pools (Foundry USA and Antpool). This is not to state that these mining pools have malevolent intentions. But Bitcoin must always guard against an attack through trustless mechanisms. Marathon’s flip-flopping over filtering non-OFAC-compliant transactions in 2021 was a warning. The solution to the problem lies in the communication protocol used to connect miners with mining pools. The existing protocol, Stratum V1, was developed and distributed as open-source software by Braiins in 2012. Whilst it has successfully supported Bitcoin mining pools since then, it was in need of an upgrade for a series of reasons. Such an upgrade enabled this centralisation issue to be tackled head-on. Stratum V2 transfers the power for writing new blocks from the pool operators and into the hands of individual miners. This is enabled by a sub-protocol within Stratum V2 called the “Job Negiotator”. The incentive for adoption is that the other updates enable faster (i.e. more profitable) and more secure communications. It is an elegant solution built with the same technical and community-facing ethos as Bitcoin’s open-source code. Děkuji Braiins! - - - - This episode’s sponsors: ----- | |||
| 07 Apr 2023 | The Failure of Government Economic Policy with Dan Tubb | 02:08:21 | |
“For every £1 the government collects in taxes, it spends £1.30. And the debt element of that is going up all the time, and you’re not getting anything for that. And effectively we’re in a spiral, a debt spiral.” Dan Tubb is a podcaster and former venture capitalist. In this interview, we discuss the problems with fixing the sovereign debt problem in the context of broken media, broken politics and broken international institutions. We talk about the general ignorance of the problems facing society, and how this compounds the difficulty of resolving the situation. - - - - The last show with Dan Tubb was extremely popular. Dan set out in clear terms why the current economic system is at a crossroads: continuation of the accumulation of debt without rebalancing fiscal commitments is unsustainable; equally, there are no easy solutions. But when debt payments become one of the main government expenditures it’s well past the time to act. In this follow-up show we discuss the causes, ramifications and potential mitigations with Dan. How did the boomer generation unintentionally fuel the current economic problems, and why are they reluctant to change tack? Why is government becoming increasingly dogmatic and coercive in their policy application? Can AI provide a source of growth for the economy that averts the debt spiral? Should we expect the government to resolve all these issues? These aren’t theoretical concerns; there is evidence abounds that society's relationship with the state is shifting: Macron’s difficulties in reigning in state spending in France; the growth in power of the Dutch farmers; Brexit. For too long those in government have taken the electorate for granted, whilst feathering their own nests. However, the issue is whether this break between the people and power will only exacerbate problems. The solution surely has to be in more direct engagement between decision-makers and citizens. States rights in the US have long served as a beacon of governance for other parts of the world: bottom up democracy that provides for competition and innovation. It’s not that we need less government, it's that we need more representative and localised government. Further, if we want a functioning democracy, we need to entice the best back into government. - - - - This episode’s sponsors: ----- | |||
| 10 Apr 2023 | The Corruption of Power & Influence with Ahmed Gatnash | 01:32:34 | |
“Lack of accountability, lack of representation, oppression, corruption, dysfunctional institutions leading to dysfunctional economies where people can’t make enough to survive; and there’s only so much you can take of that before you reach the end of your tether.” Ahmed Gatnash is an author, activist and co-founder of the Kawaakibi Foundation. In this interview, we discuss how the hope of the Arab Spring has been ruthlessly suppressed, meaning the middle east is further from democracy than ever. It’s a breathtaking story of brave activists fighting Twitter’s exploitation, Jamal Khashoggi’s murder and the blackmailing of Jeff Bezos. - - - - The history of the Middle East is a modern tragedy: the cradle of civilisation has been exploited by powerful Western interests that have enabled corrupt and cruel authoritarian rule to dominate the region. Democratic movements have long struggled to gain any traction. However, a wave of optimism spread through the region in 2011 as the Arab Spring saw numerous popular uprisings. The ruthless response indicated that the region's path to freedom will be a long one. Every action has an equal and opposite reaction. Except in the Middle East. The wave of protests predicated on the pent-up anger at decades of corruption and economic stagnation heralded an era of extreme brutality against citizens throughout the region. The cruel irony is that the Western social media technology that enabled the coordination of demonstrations, has now been effectively harnessed by those seeking to protect the established centres of power. The cruelty lies in the knowing actions of those directly involved in the violent repression of dissent. It also lies in the wanton ignorance of those living in the West. Those who marginalise a continent of people. Those who prioritise profit over other considerations. Those who talk of freedom but know nothing of those who are staking their lives for freedom in today’s world. This is a tale about brave activists fighting for the rights we in the West take for granted to be provided to their peers in the Middle East. It is a story of an outsized fight where those fighting for democracy are facing entrenched and ruthless authoritarians, self-interested Westerners and a largely indifferent media. It is an interview you need to hear. We all need to check our privilege. - - - - This episode’s sponsors: ----- | |||
| 12 Apr 2023 | Bitcoin’s Wall’d Garden with Eric Wall | 02:01:46 | |
“This group of Bitcoiners that we’ve cultivated for the last couple of years, they are not going to help us to grow this community by a tenfold or a hundredfold anymore. That’s a small clique of people that has now taken control.” Eric Wall is a researcher and investor, and in this interview, we discuss how Eric became a notable critical voice within the HEX community, his ongoing fight with prominent Bitcoin maximalists, and Taproot Wizards. - - - - What Bitcoin stands for and should be is a debate that has been raging since 2009. Bitcoin’s unique characteristics have drawn many people into its gravity. The realisation that its immaculate conception may never be replicated has resulted in many of those same people guarding Bitcoin’s development with uncompromising zeal. The result has been the rise of Bitcoin Maximalism. Maximalist ideology can be a fuzzy concept: there are no clearly agreed rules or principles; there have been various iterations with different priorities over time. However, it is clearly characterised by conservatism over the development of the protocol, and intolerance for those with differing attitudes. Nevertheless, that is not to say that Bitcoin development can forever remain in stasis. There are and have been pressures requiring upgrades both to the base layer, and in the development of additional layers. This means there is always a creative tension on what changes are required, and how quickly these need to be implemented. Further, as Bitcoin has no leader, it has engendered an ecosystem where advocates organically emerge, who can gain traction and have an outsized influence on the community. This creates further tensions as Bitcoin’s purpose is being proselytized using competing and sometimes muddied beliefs. Thus, it is important that Bitcoiners enable an open dialogue where all ideas are questioned, scrutinized and tested. And such debates should be open to all Bitcoiners, without fear or favour to any powerful interests. Is the question therefore how intolerant we should be of those with differing views? And, can we live without trolling, or is this a necessary defensive tool? - - - - This episode’s sponsors: ----- | |||
| 14 Apr 2023 | The Failure of Central Banking with Matthew Mežinskis | 02:18:04 | |
“We are at peak central banking at the moment. The only thing more peak would be a nationalisation of the entire system, and no other bank, full CBDCs…the central bank’s basically controlling all the retail money: did you spend too much on alcohol this week? Did you not? Did you reach your quota of spending this week?” Matthew Mežinskis is the creator of the Crypto Voices podcast and Porkopolis Economics website. In this interview, we discuss why free banking has always failed due to central bank interference, and how Bitcoin changes the rules of the game. We also talk about how credit is a natural economic phenomenon, and why narrow banking is centralising in nature. - - - - The history of free banking goes back over 1,000 years and it has existed in over 60 countries. It was widespread in the 19th century, but from the early 20th century onwards it was supplanted by central banking in modern economies. However, despite some common narratives, it’s demise was more to do with pressure from governments to create monopolies for currency issuance, than inherent weaknesses in the free banking system. The idea of free banking is re-emerging as a response to the failures of central banks. It is well documented that monopolies often result in market failure due to their constraining of efficiency and innovation. Further, without competition, those running monopolies distort prices and capital through subjective and misaligned priorities. A sovereign debt spiral is a symptom of such centralising control. Matthew Mežinskis is able to bring colour to this issue through his peerless analysis of the different types of money flowing through the economy, and how these are currently out of kilter with the economic system they are intended to support. At the root of the problem is that central banks control both the base money (i.e. the money supply) and the credit supplied to the economy through commercial banks. These tools have been abused. Further, commercial banks have been allowed to get around the rules of the system for decades. As a result, bailouts for commercial banks are happening with alarming regularity. As Matthew asserts in the show: “In the last 100 years, the central bank, the premier banking institution in the United States, has gone to three extremes; [this] never ever has happened in recorded history.” Thank god we have Bitcoin. - - - - This episode’s sponsors: ----- | |||
| 17 Apr 2023 | The Sovereign Debt Bubble with Luke Gromen | 01:17:42 | |
“We know where we are in the debt cycle, we know where we are with energy. And so then it comes down to the key points: when there is tension in the market, when there’s volatility in treasuries - okay, we’ve come to a point: they either have to let the debt default, or they have to print. The chance that they’re going to let it default is like zero.” Luke Gromen is the Founder and President of Forest for the Trees (FFTT). In this interview, we discuss how governments can navigate the first busting global debt bubble in 100 years. We talk about historical precedents: namely the Weimar Republic in the 1930s and Israel in the 1980s, and how governments may be forced to allow for a compressed period of triple-digit inflation. - - - - Israel in the mid-1980s faced an existential economic crisis. After a decade of stagnation and rising government expenditure fuelled by money printing, commercial banks started to buckle. Further, the inflation rate was skyrocketing. In 1979 it had reached 111%. By 1984 it had grown to 450%, with fears it could exceed 1,000% by the end of 1985. Despite the real risk that the sovereign debt bubble may soon burst leading to unprecedented levels of inflation, those in the west have become inured to a belief that very high rates of inflation only happen in developing countries. And yet, the experience of hyperinflation in an advanced democratic country was felt much more recently than most people think. It is important therefore to consider the lessons from Israel’s inflationary crisis of the 1980s. The policies enacted by Israel to mitigate the situation were socially bruising. Markets were liberalised, government spending was significantly cut, wages were controlled, the Shekel was sharply devalued, and interest rates were raised to punitive levels. The result was a recession in the 1990s with high unemployment. But inflation was tamed. And Israel did not fail as a state. Nevertheless, the taming of inflation in Israel benefited from various fortuitous factors: high levels of cheap immigrant labour, the technology boom, and the peace process opening up new markets. There aren’t any such obvious pressure-release valves for the west. Furthermore, will those in the West feel as culturally tied to their home nation to stick through such periods of pain? In essence, is Israel a useful case study, or a distracting aside? We may hope it's the former. Otherwise, we may be entering a period for which the precedent goes back to the 1920s Weimar Republic. Or, even more worryingly, we may experience a crisis for which there is no historical precedent. Prepare accordingly. - - - - This episode’s sponsors: ----- | |||
| 19 Apr 2023 | Scaling Bitcoin Privacy with Calle | 01:28:41 | |
“This was the reason why I think ecash is coming back now: because it needed Bitcoin. Ecash is almost worth nothing if you don’t have a free sovereign monetary layer below it… and we found the base money of the internet.” Calle is a Bitcoin and Lightning developer contributing to LNBits and the Cashu ecash system. In this interview, we discuss Cashu’s mission and development, undertake a live demonstration of it in action, the importance of privacy, removing ideology from Bitcoin, and the future of AI and robots. - - - - “By providing a high degree of privacy in payments, cash helps to slow the growing information asymmetry between consumers and companies… between citizens and public authorities… privacy is crucial for individuals to safeguard their position when dealing with organisations which are more powerful than a single person.” Not the words of an anarcho-capitalist, but a prominent Deutsche Bank economist from 2019. It is a truism that privacy is the bedrock of democracy. The problem is we’re sleepwalking into a cashless society where digital payments are tracked, recorded and stored. You can learn everything about someone through their transactions. Privacy in other areas means nothing in this environment. The issue has been how to replicate the utility of cash in the digital world. David Chaum solved this problem in 1982: his dissertation “Computer Systems Established, Maintained and Trusted By Mutually Suspicious Groups” was the original blueprint for blockchains (excluding the proof of work consensus mechanism). His company Digicash launched ecash in 1995, predicated on Chaum’s blind signature innovation. For various reasons, ecash did not take root. Until now. Amongst a small number of initiatives aiming to revive ecash under the Bitcoin umbrella, is Cashu, which allows for private ecash payments over the Lightning Network. It is essentially digital cash, backed by Bitcoin. It requires no accounts or personal information, and everyone involved in the system is blind to other users' transactions. There are tradeoffs: it’s a custodial system where sats are deposited in ‘mints’ to create ecash. The creator Calle, a respected Bitcoin and Lightning Network developer, is working on technical solutions to overcome concerns. Even so, given how well the test version of Cashu is working, Cashu could be the go-to digital cash feature we’re all using very soon, and the feature that enables the next cycle of adoption. - - - - This episode’s sponsors: ----- | |||
| 21 Apr 2023 | The Truth About Bitcoin Mining with Lane Rettig | 01:42:16 | |
“All this article serves to do is force you to one side or the other. Either you kind of go into this sceptical about Bitcoin or maybe not knowing much about it and come out of it feeling very strongly that Bitcoin is evil, and Bitcoin miners are evil, and they’re literally killing people… Or you’re on our side of the aisle so to speak, and you roll your eyes and you’re like this is biased and the New York Times is a fucking joke.” Lane Rettig is a core developer for Spacemesh. In this interview, we discuss the much-criticised New York Times article that attacked Bitcoin mining, specifically focusing on its strange attacks on demand response and the use of marginal emissions accounting. We also talk about the difficulties of finding truth in a world with misaligned incentives. - - - - On April 11th, The New York Times (NYT) published a piece of investigative journalism by Gabriel J.X. Dance entitled “The Real-World Costs of the Digital Race for Bitcoin”. The piece stated Bitcoin mines “cash in on electricity — by devouring it, selling it, even turning it off — and they cause immense pollution. In many cases, the public pays a price.” As Margot Paez stated in a brilliant review of the article for the Bitcoin Policy Institute, The NYT’s hit piece is “Absurd”. The article had been long expected as a number of prominent people within the community have been interviewed for it. What transpired was that any pro-Bitcoin information provided had been ignored. The flip side was the biased representation of Bitcoin mining using flawed analysis, false equivalences, wild extrapolations and incorrect deductions. It is an exemplar of confirmation bias writ large, where the conclusions preceded the investigation. That Gabriel Dance has no experience of Bitcoin or crypto in any of his previous work is neither here nor there. Any journalist worth their salt knows the basic tenets of reporting: a clinical gathering of evidence, cold interrogation of facts, and an unbiased and clear interpretation of the results. The NYT put’s it best in its mission statement: "seek the truth & help people understand the world". So, what has happened? A commissioning editor would have signed this off following a modicum of independent fact checking. That it has been published whilst being riven with distortions and mistruths suggests either a corruption of the journalistic practices at The NYT or that their internal systems have been stripped to the bone and the drive for clickbait trumps everything else. Either way, we have a problem, as mainstream fake information spreads like a virus. - - - - This episode’s sponsors: ----- | |||
| 24 Apr 2023 | The Regulatory Threat to Bitcoin with Jason Brett | 01:25:53 | |
“What’s keeping me up is I don’t really know if the ‘banking crisis’ is over, we’ve done another temporary measure. But it was a process of many months, and then a couple of years where maybe we’ll face the repercussions, like you said, of we overcorrected in 2008, but we didn’t necessarily solve the problem at the time. And if it happens at a later date, maybe this is that later date to pay that check.” Jason Brett is a former FDIC regulator who worked through the 2008 Global Financial Crisis. In this interview, we discuss the Restrict Act, a proposed piece of US legislation that could enable the Secretary of Commerce to shutter access to Bitcoin. We also talk about Operation Chokepoint 2.0, the banking crisis, and whether Bitcoin is a threat to the banks. - - - - Last month, a bipartisan group of United States senators introduced a bill called “Restricting the Emergence of Security Threats that Risk Information and Communications Technology Act”, which is being referred to as the RESTRICT Act. Principally aimed at mitigating foreign technology threats, the legislation would empower officials to police and restrict Americans' domestic access to a range of technologies, including Bitcoin. Whilst not principally aimed at cryptocurrencies (it has been drafted with the aim of banning companies like TikTok from the United States), the bill has been widely criticised for its broad language. It would enable the secretary of commerce to take action against any information and communication technology connected to a foreign adversary that posed “undue or unacceptable risk”. The US has recent experience of the original intent of laws being stretched to limit American citizens' rights: the 2001 Patriot Act has been used for increasingly pervasive monitoring and surveillance of Americans that included the implementation of bulk data collection programs by the NSA affecting millions of people. The issue at hand is that Bitcoin presents a real and present danger to the Fed: it is both a viable alternative to commercial banks, and Treasury debt as a global reserve asset. History shows decision makers will use any tool available to restrict what they view as an undue and unacceptable risk. Whilst Bitcoin is not the primary target of the Restrict Act, it is feasible that one day it may be used to stop access to Bitcoin for Americans. Prepare accordingly. - - - - This episode’s sponsors: ----- | |||
| 27 Apr 2023 | Recession is Coming with James Lavish | 01:22:42 | |
“There’s just too much leverage in the US system, they can’t let the market drawdown too deeply, we can’t go into too deep of a recession; and everybody knows this, they’ve been conditioned to it and this is the QE moment where the Fed pivots and they step in and they print, a face-melting print.” James Lavish is a Bitcoin advocate and writer of the Informationist newsletter. In this interview, we discuss central banks' manipulation of the monetary system, the eye-melting bailouts to come, an inevitable credit event the Fed will be unable to rectify, why BRICS pressure doesn’t currently threaten the dollar, and how the US rejecting Bitcoin may lead to hyperbitcoinisation. - - - - Last month US Treasury yield curves witnessed their deepest inversion for over 40 years. This means holding bonds over the long term results in a lower return than shorter-duration contracts. It is a classic signal of a looming recession. It is the market expectation that future interest rates will be cut in order to stimulate an economy. Whilst there are historical precedents for this situation, what sets the current paradigm apart is the level of unsustainable government debt: increasingly, countries are having to deal with debt levels in excess of their respective GDP. Whilst high inflation provides a way for reducing these burdens, such levels of inflation are politically damaging, and further, risk damaging economies and thereby tax income. Moreover, they risk damaging critical banking infrastructure. Interest rates, as a result, will oscillate: they have accelerated to reduce rampant inflation, then, as is being forecast, they will need to be cut to stimulate a stagnant economy. All the while, commercial banks will be forced to search for yield. And some of these banks will get on the wrong side of the trade. Recent events have shown how quickly such situations can spiral out of control. But, for how long can governments keep bailing out the banks? James Lavish, a leading market analyst, predicts a precarious situation. For a variety of reasons, the US can’t afford to go into a deep recession. As a result, James predicts a “face-melting print” by the Fed to avoid this situation. But, then, at some point the music will stop, and there could be a watershed credit event where the Fed won’t or can’t step in. The real question is, what comes after this event? - - - - This episode’s sponsors: ----- | |||
| 29 Apr 2023 | Why Deflation is the Key to Abundance with Jeff Booth | 01:07:04 | |
“Everything in the world has counterparty risk to that debt except for Bitcoin… if you’re measuring from Bitcoin then you’re seeing prices falling to the marginal cost of production everywhere.” Jeff Booth is the Author of The Price of Tomorrow and CEO/Chairman of Ego Death Capital. In this interview, we discuss the effects of prices falling to the marginal cost of production, Bitcoin and its role in a deflationary economy, how inflation and debt distribute wealth unfairly, and the deflationary influence of AI and its impact on the future. - - - - It is the natural order for prices to fall to the marginal cost of production over time, and this principle applies to all industries. The fiat system works against this by artificially creating scarcity. And it has to work against deflation to maintain its dominance, through manipulation of the monetary system: debt, inflation and an ever more narrow concentration of wealth. As the fiat system falters, could the concept of a deflationary economy take hold? Whilst it involves a massive shift in economic value that is hard to comprehend, as innovation continues to push the boundaries of what is possible, and AI comes of age, a deflationary economy becomes very more likely. Jeff Booth argues that it makes logical sense as a system to enable society to continue to expand. The common narrative is that we need inflation, and deflation would harm living standards. However, Jeff argues that whilst prices will fall in a deflationary economy, wages are sticky: people are not willing to accept wage decreases as fast as prices are falling. This would result in a massive transfer of wealth back to productive members of society. Jeff also promotes Bitcoin as part of an investment strategy as we transition into a deflationary economy: its monetary policy is designed to weather the current inflationary system, it’s outside of anyone’s control and it has no counterparty risk. Further, in a new period of abundance, a reliable fixed currency will become a necessity. It will be the new measurement for productivity and progress. - - - - This episode’s sponsors: ----- | |||
| 01 May 2023 | WBD Live in Bedford with Jeff Booth, James Lavish, Lawrence Lepard & Ben Arc | 01:35:02 | |
“When people are talking about Bitcoin price going up, that is not what’s happening. Everything is falling against Bitcoin forever. That’s what’s happening. And so when you’re measuring Bitcoin price going up, you’re actually defaulting to the currency that’s being manipulated.” On the 14th of April What Bitcoin Did hosted a live show in Bedford. The guests were the founder of LNBits Ben Arc, CEO/Chairman of Ego Death Capital Jeff Booth, Investment Manager Lawrence Lepard and Macro analyst James Lavish. Across these interviews, we discussed Nostr, censorship-resistant marketplaces, hyperinflation, debt, deflationary economics, Bitcoin and AI. - - - - I have taken the What Bitcoin Did podcast all around the world: across the United States, South America and Europe. However, I have always dreamed of hosting a live event in my home town. Never would I have believed that I could have been lucky enough to have 4 of the best voices within the community come to the inaugural What Bitcoin Did Live in Bedford event. The show covered the main issues affecting not only the Bitcoin community at the moment, but the wider economic and social landscape. We discuss the development of the decentralized censorship-resistant social media network Nostr with one of it’s inventors, the amazing Ben Arc, and his work in expanding its application to develop censorship-resistant marketplaces. Lawrence Lepard and James Lavish set out their analysis of the macroeconomic environment in which the current sovereign debt and deficit situation could result in triple-digit inflation in Western economies within the next few years. We discuss balancing mitigating the resultant risk with investment strategies focused on both gold and Bitcoin. Finally, Jeff Booth explains his deflationary thesis, where an unmanipulated economic system allows technology and competition to provide productivity gains to flow through society, how Bitcoin is the only way to measure the productivity falling in a system with monetary inflation, and, the potential for AI to create a superintelligence that will be smarter than humans. - - - - This episode’s sponsors: ----- | |||
| 03 May 2023 | Escaping Hyperinflation in a Rolls Royce with Freddie New | 02:03:45 | |
“Why I feel perhaps Bitcoin and its properties appealed more to me than to some other people…I was lucky to have strange experiences as a kid, which I feel made the advantages of a money which you can carry in your head, or, which you bring with you when you cross a border, or, if the worst happened, and you just had to drop everything and go, what could you take with you.” Freddie New is the Head of Policy at Bitcoin Policy UK. In this interview, we discuss how his childhood experiences living in Zimbabwe and Syria have shaped his understanding of Bitcoin’s unique properties. We also discuss his amazing efforts in setting up Bitcoin Policy UK, a new and much-needed advocacy group promoting Bitcoin to policymakers and the wider public in the United Kingdom. - - - - Danny and I have been very fortunate to travel to a vast array of countries in making this show. In the process, I have been exposed to ideas and experiences that reinforce the importance of Bitcoin. But what strikes me the hardest is coming back to the UK. There is a general lack of interest and consideration for this innovation. It’s an attitude that borders on outright suspicion and derision on occasions. Freddie New is one of the main people behind a new advocacy group: Bitcoin Policy UK. It is a lobbying and educational non-profit that the UK has been in desperate need of. This speaks to the difficulties of getting funding for such initiatives more than anything else. But, as the Bitcoin Policy Institute and Coin Centre attest, it’s about getting the right people to work in such organisations. Freddie is such a person. Whilst he speaks like a typical London professional (which can open many doors in the UK!), his experiences in growing up and escaping Zimbabwe were anything like the typical insular upbringing of many in the UK. At an early age, Freddie was forced to acquire valuable education on the importance of the properties that Bitcoin provides. It is a story that makes you catch your breath. Bitcoin advocacy is about looking beyond the investment potential of the Bitcoin asset and expressing its value as a technology that can protect people. Advocacy needs to be authoritative and tell powerful stories to persuade people who are blind to the economic transition coming down the road. Having someone who can eloquently attest to the need to have means to protect sovereign wealth could be the lightning rod for Bitcoin advocacy in the UK. - - - - This episode’s sponsors: ----- | |||
| 05 May 2023 | Gold, Bitcoin & Inflation with Lawrence Lepard | 01:03:55 | |
“We need to live in a deflationary world. Therefore, we need a currency which matches that world. So we’re trying to push an inflationary currency story (based on Keynes’s wrong premises), against a deflationary world that needs more efficiency, not more growth.” Lawrence Lepard is an Investment Manager and Austrian Economist. In this interview, we discuss gold and Bitcoin, comparing their relative benefits as assets over short and long time scales. We also discuss inflation, the potential threats to Bitcoin, inequality in society, and the challenges of finding credible leaders in politics. - - - - As the world grapples with an uncertain financial future, it's becoming increasingly important to diversify your investment portfolio. The two obvious assets designed to weather the coming economic storms are Bitcoin and gold. Whilst the relationship between gold bugs and Bitcoiners has been adversarial over the years, the two assets are two sides of the same coin. There are important differences between the two: Bitcoin is digital gold, which enables it to be used in ways beyond the capacity of gold; but gold has a 5,000-year head start on Bitcoin, and can therefore provide less volatility in the short to medium term. But, the primary demand for both as a store of value is predicated on the same thesis of limited supply. They both, therefore, serve as a hedge against inflation. In essence, the investors in both assets are well aligned in terms of their concerns about the global economic system. Goldbugs and Bitcoiners understand the value in sound money, and the risks posed by the current fiat system. Rather than being suspicious of each other, there is much to be said about orange-pilling gold bugs, and similarly, Bitcoiners being open to investing in gold. The big picture is that both gold and Bitcoin present a risk to the current economic system. It is likely that they will both be subject to attacks and controls by those seeking to reinforce the current system, as the cracks and fissures widen. Any meaningful divisions can and will be exploited: divide and conquer is a military tactic as old as politics and war. We, therefore, need alliances. Lawrence Lepard is one of those seeking to build a bridge between the two groups. - - - - This episode’s sponsors: ----- | |||
| 08 May 2023 | Busting the GBTC Trust with David Bailey | 01:01:48 | |
“Where there’s smoke, there’s fire, and there’s so much fucking smoke at DCG you can’t breathe.” David Bailey is the co-founder & CEO of BTC Inc. In this interview, we discuss the upcoming Bitcoin Conference in Miami, the ongoing saga with Genesis, Grayscale & DCG, as well as the Redeem GBTC campaign that David has been spearheading. - - - - Grayscale Bitcoin Trust (GBTC) is a trust product offered by Grayscale, a company owned by Digital Currency Group (DCG). GBTC allows investors to gain exposure to Bitcoin through more traditional investment channels, and currently, Grayscale manages approximately $18.1 billion across various funds. However, Grayscale is facing some significant issues. Since early 2021, GBTC has been trading below its net asset value (NAV) at a discount rate of around -36%. GBTC holders are unable to redeem their shares for the underlying asset and must accept this discount if they want to sell their shares on the open market. To address this, David Bailey has set up the Redeem GBTC campaign to push Grayscale to open withdrawals and allow GBTC holders to access the underlying Bitcoin with minimal impact on the Bitcoin market. Allowing redemptions could also potentially bring the heavy discount to NAV back closer to par. - - - - This episode’s sponsors: ----- | |||
| 10 May 2023 | A Philosophical Case for Bitcoin with Bradley Rettler | 01:40:50 | |
“If you had to step behind the veil of ignorance and forget who you are in the world, would you want to step back into a world that had Bitcoin or that didn’t have Bitcoin? And for most people in the world, it’s good for them that Bitcoin exists.” Bradley Rettler is an Associate Professor of Philosophy, and a member of the Resistance Money, a philosophy research collective focused on Bitcoin. In this interview, we discuss the potential ethical implications of AI, philosophical reflections on money creation and governance, the importance of financial literacy, and combating misinformation about Bitcoin. - - - - Over the past few years, one of the important groups to emerge within the Bitcoin community has been the philosophers studying Bitcoin, led by members of the Resistance Money collective: Andrew Bailey, Bradley Rettle and Craig Warmke (with Troy Cross as an honorary member). They have added academic weight to the consideration of the importance of Bitcoin in the context of fundamental questions regarding money’s role in society. The Resistance Money collective has been examining Bitcoin from various angles. In the episode, Bradley discusses moral dilemmas posed by a material global transition to this new form of money: the transfer of wealth, energy consumption impacts, the acceptance of privacy for bad and good, and usage by enemies. In addition, considerations about the benefits provided by fiat currency that could be lost: e.g. is there a useful societal function provided by money printing? But this is where philosophical tools are extremely useful. In a previous episode, Craig Warmke explained the usefulness of the ‘veil of ignorance’ thought experiment, where one assumes they have no knowledge of what position in society they would have, and, from this position, they then determine what monetary system would best serve society for the great good. It is this perspective that is used to establish the Resistence Money thesis on Bitcoin. In a scenario where you could fall into any position in society, it would obviously be better that Bitcoin existed. It is the philosophical equivalent of checking your privilege. Whilst Bitcoin’s potential impact on society is complex and uneven, it is far easier to understand how Bitcoin acts to mitigate global inequality and inequity when assuming a scenario where you need it, and it doesn’t exist. - - - - This episode’s sponsors: ----- | |||
| 12 May 2023 | How Fedimint Scales Bitcoin with Obi Nwosu | 01:43:11 | |
“We’re effectively the outsource business development arm for the entire Bitcoin ecosystem… Inherent in our model is that we win by ensuring the entire ecosystem wins. ” Obi Nwosu is a co-founder of Fedimint and a board member of Jack Dorsey’s and Jay-Z’s ₿trust. In this interview, we discuss the mission of Fedimint: empowering communities around the world by allowing them to take control of their money. We also talk about the importance of trust models in relation to storing Bitcoin in Fedimint. - - - - It’s hard to believe that Fedimint is only 2 years old. Its development is a regular topic of exciting conversation within the community. It is one of a number of important projects that are leading many to believe we’re on the cusp of a wave of innovation within Bitcoin: Blockstream Developer Neigut expects there will be a ‘Cambrian Explosion’ of Bitcoin Layer 2 Protocols in the future. Obi Nwosu came back to provide some valuable demonstrations of how Fedimint will work in practice. Lightning transactions, encrypted chat and offline payments are just an example of the developments that the Fedi team have been working on bringing to the Fedimint protocol. All of these back and reinforce the Chaumian mint functionality and multisig custody solution on which Fedimint is predicated. It is now garnering interest from those looking to use it in anger, with a number of Beta applications being tested. Once officially launched, it has the potential to democratise access to financial systems for millions of communities, providing efficiencies and cost savings currently out of reach. Further, it can make the Lightning Network more efficient whilst opening up access to Bitcoin. - - - - This episode’s sponsors: ----- | |||
| 15 May 2023 | 1000 Years of Inflation with Rune Østgård | 00:59:39 | |
“The people who worked as economists, who were against inflation, they were basically frozen out of the universities, etc. They, the politicians, wouldn’t listen to them.” Rune Østgård is the Author of ‘Fraudcoin: 1000 Years with Inflation as a Policy’. In this interview, we discuss inflation’s historical introduction and use as an exploitative tool by elites and how, in various phases of history (most recently, the early 20th century), inflation was not viewed as a required economic phenomenon. To Rune, there is no more important subject to understand than inflation. - - - - In the 1700s, Scottish philosopher and economist Adam Smith was the first to use the term “inflation” in his book, “The Wealth of Nations.” Smith argued that inflation resulted from an increase in the amount of money in circulation, which caused goods and services to be more expensive. But inflation is not a modern phenomenon. It has been in existence for centuries. And historical analysis shows that it has been used as an exploitative tool by elites throughout the ages. Rune Ostgard has traced the use of inflation back to its use in his home country of Norway in 1050 AD, its use by a tyrant King, and its role in the effective ending of the Viking era. Rune states that it is this historical knowledge that shows firstly how ruinous inflation can be and, secondly, why it is not an inevitable or necessary feature of economic systems. Famously during the 19th century, there was a sustained period when deflationary growth occurred in the United States. And yet, for the past 100 years, we have been conditioned to accept inflation as an essential economic driver. Its insidious nature has been hidden by a period of low rates of inflation. Now, however, with inflation rising to double-digit levels across many parts of the world, its destructive compounding impacts are more apparent. We are now, therefore, at a time when it is necessary to question inflations societal value and whether there are other ways of managing our economies. Whilst Bitcoiners have a viable future mapped out, Bitcoin is still viewed by many with suspicion. But, as the fiat system continues to unravel, the value of Bitcoin becomes ever more easy to explain. - - - - This episode’s sponsors: ----- | |||
| 17 May 2023 | 10 Rules for Life with Michael Saylor | 02:09:48 | |
“There’s this phrase Bitcoin fixes this… I’m of the opinion that Bitcoin fixes everything. I think Bitcoin is a solution to every city, every state, every country, every corporation, every network, every application, every product.” Michael Saylor is the CEO of MicroStrategy. In this interview, we discuss his 10 tips for young adults, the opportunities and threats of AI, the importance of Bitcoin in an automated world, the strength of ossification compared to accelerating change, and the criticality of Bitcoin miners to the Bitcoin network. We also talk about Michael’s navigation of the bear market. - - - - Chat GPT was released a little over 6 months ago. It is arguably the most significant tech innovation since the internet. People are now routinely using chatbots to interact with technology and access information tailored to very specific needs. Whilst the impacts of this are yet to be fully understood, it is widely accepted that we have entered a new exciting and equally frightening paradigm. The issue at hand is that the world is becoming increasingly automated. As a result, human beings are being viewed as a constraint on productivity, which AI technology can mitigate. Where does this leave humans? In a world predicated on code and efficiency and automation, what controls are in place to ensure these systems are secure such that they can not be centralised and exploited such that the general population suffers rather than flourishes? Michael Saylor is of the opinion we need an automated tool that is secure and outside of any centralised control. Bitcoin, in this scenario, is the tool that can compete with new digital advances, but, enable humans to retain some control of their lives. As such, it is imperative that we protect the integrity of the innovation such that its utility remains available for both existing and future generations. The question then becomes how do we best protect Bitcoin? Saylor argues that it is the Bitcoin miners that are Bitcoin’s “fortresses”: they provide brute force security, a cryptographic defence, and the means to marshall the means to advocate effectively for Bitcoin within the corridors of power. Bitcoin miners, therefore, need protection to ensure they continue to act as Bitcoin’s standing army. We do this by ensuring stability: ossifying Bitcoin’s base layer protocol. - - - - This episode’s sponsors: ----- | |||
| 19 May 2023 | Is Bitcoin Warfare? With Jason Lowery | 02:30:10 | |
“We had irrigated land, we had army. We had goods travelling across the sea, we had navy. We had goods travelling across the air, we had air force… So what happens when civilization expands its footprint into cyberspace? How do we secure zero trust permissionless access to our data in cyberspace?” Jason Lowery is a Major in the US Space Force and the author of Softwar: A Novel Theory on Power Projection and the National Strategic Significance of Bitcoin. In this interview, we discuss how he is building the case within the US Department of Defence that Bitcoin represents a new form of digital warfare that the US government needs to embrace to secure its power projection in cyberspace. - - - - Jason Lowery burst onto the Bitcoin scene in August 2021. When a senior member of the US Space Force enters the Bitcoin debate, it tends to turn heads! But, it was his novel projections of what value Bitcoin presents to society that generated interest and controversy. Bitcoiners have long espoused Bitcoin as a peaceful revolution. Jason thinks Bitcoin can be used as a tool of warfare. In Softwar, Jason’s recently released book on the national strategic significance of Bitcoin, he explains the background of modern warfare, tracing its roots back to the struggle for survival in all forms of life. From single-cell organisms upwards, all of life is involved in a fight for control over resources and territory. Competition has resulted in an ecological arms race manifested through evolutionary cycles of improvements in physical power and the projection of that power. In his role within Space Force, which is developing the means to project power beyond our planet, Jason has been contemplating what other tools will be required as another arena for the competition opens up: cyberspace. Jason argues that Bitcoin has the potential to be a revolutionary cybersecurity system. Proof of Work is an innovation that moves the fight to the enemy, imposing a cost on those wishing to undertake an attack. Softwar is a call to action for the US Department of Defence to adopt Bitcoin as a tool of warfare in the new cyberspace battlefield. Whilst designed to secure money, PoW can, in theory, be used to secure other forms of data. Whether you agree with this assertion or not, Jason is making progress within the DoD in arguing Bitcoin’s utility makes it too important for the Department of Treasury and Federal Reserve jurisdiction. And who would bet against the DoD in a fight! - - - - This episode’s sponsors: ----- | |||