0:00

Everyone wants to make you an

0:02

addict. Some people sell illicit drugs

0:04

on the black market and want

0:06

you to become addicted to them

0:08

so they can profit from you.

0:10

The dealers naturally focus on drugs

0:12

that are physically addictive because they

0:14

are often the hardest to kick.

0:16

When they do manage to addict you to

0:19

them, that becomes harder and harder over

0:21

time. For drug lords and

0:23

dealers, this is heaven. This

0:25

virtually guarantees that all customers

0:27

will be regulars, at least

0:29

for as long as they

0:31

survive. For the addict, it

0:33

depletes the quality of their life.

0:36

They start to live from one

0:38

fix to the next. As bad

0:40

as such addictions might sound,

0:43

and as widespread as they

0:45

are, the current global addiction

0:47

is yet worse. The addiction

0:49

to digits pandemic. The

0:52

best

0:55

in Bitcoin

0:59

made audible.

1:03

I am

1:07

Guy Swan

1:10

and this

1:14

is Bitcoin

1:17

Audible. The guy who has read

1:19

more about Bitcoin than anybody else

1:22

you know. And this show is

1:24

brought to you by the Blockstream

1:26

Jade Plus hardware wallet. Don't forget

1:28

to check out my unboxing video.

1:30

There is very important information that

1:33

you need to be aware of

1:35

in that video. Like what else

1:37

comes in the box? What does

1:39

a Jade Plus smell like? And

1:41

other very important details. And also

1:44

the bitkit mobile wallet, which has been

1:46

one of my favorites. It was actually one

1:48

of the ones that... You know when you

1:50

set up a wallet and you're just intending

1:52

to play around with it so you do

1:54

a bad thing and you forgot to write

1:56

down your seed or you put your seed

1:58

in a vulnerable place like I actually posted

2:01

my seed in discord with the engineering

2:03

team with the the guys who are

2:05

developing it specifically because we were trying

2:07

to test something out with contacts and

2:09

then I forgot that that seed was

2:12

vulnerable because at the time the while

2:14

it was brand new it was in

2:16

beta and I was just trying it

2:18

out but I really liked it and

2:21

I found myself continuing to go back

2:23

to it And then I realized sometime

2:25

later on, it was like four months

2:27

later, five months later, that I had

2:30

kind of started using it. Like I

2:32

had a few hundred dollars worth of

2:34

Bitcoin in that wallet, and the seed

2:36

was literally just text published in a

2:39

discord server somewhere. And one of the

2:41

developers had even booted it up on

2:43

their device, because like I said, because

2:45

we were testing something. And then it

2:48

hit me, it hit me one day.

2:50

I was like, oh my God, this

2:52

is a totally compromised seed. But it

2:54

was just a great example of both,

2:56

you know, Opsek, but also a testament

2:59

to the fact that the bitkit wallet

3:01

was pretty awesome because I had kept

3:03

using it. But anyway, I didn't intend

3:05

to tell that story, but it just

3:08

popped into my head. We've got a

3:10

great episode today, we've got a great

3:12

read from Ivan Makadonski who we have

3:14

read, he did the entire series, which

3:17

we've only read the first one I

3:19

think on construction, but the series on

3:21

how instant payments and the lightning network

3:23

can fundamentally change industries and then really

3:26

kind of thinking about the model, how

3:28

you could change the economic and market

3:30

model using instantaneous payments. It's a really,

3:32

it's a pretty fun series and I

3:35

intend to probably get back to actually

3:37

doing the whole thing on the show.

3:39

The only thing is it's just, it's

3:41

a ton. It's a long series and

3:44

they're all pretty long, they're decent sized

3:46

pieces. And I've already just got a

3:48

list that, the list grows longer than

3:50

I get the audio out. But I

3:52

really wanted to hit this one in

3:55

particular because it's one of his most

3:57

recent, or it is his most recent

3:59

piece. it's about the digit addiction,

4:01

the addiction that we have to

4:04

fake points and what it means

4:06

and what the difference between real

4:09

digits, real points, and fake ones

4:11

even is. And I just thought

4:13

this was a really interesting framing

4:15

and I don't want to lead too

4:18

much, I want to let Ivan kind

4:20

of take it away and then we

4:22

will follow it up with a guy's take.

4:24

So with that, let's go ahead

4:26

and jump into today's article

4:28

and it's titled. The

4:30

Digit Addiction Pandemic

4:33

by Ivan Makadonski

4:35

A look at the compulsive

4:37

and addictive behaviors

4:39

encouraged by the

4:42

structure of the Fiat world.

4:44

The dystopian present.

4:47

Fiat has made us all

4:49

digit addicts. Everyone

4:51

wants to make you

4:53

an addict. Some people sell illicit

4:55

drugs on the black market and want

4:57

you to become addicted to them so

5:00

they can profit from you. The

5:02

dealers naturally focus on drugs that

5:04

are physically addictive because they are often

5:06

the hardest to kick. When they do

5:09

manage to addict you to them, that

5:11

becomes harder and harder over time. For

5:13

drug lords and dealers, this is

5:15

heaven. This virtually guarantees that all

5:17

customers will be regulars, at least

5:19

for as long as they survive.

5:21

For the addict, it depletes the

5:24

quality of their life. They

5:26

start to live from one fix to

5:28

the next. The problem for

5:30

the dealers is the illegality

5:32

of the product. Staying in business

5:34

as a dealer requires a lot

5:36

of care, caution, and expense.

5:39

Additionally, much of the total

5:41

addressable market is turned off

5:43

by drugs bad reputation.

5:45

So what do you do? If the

5:48

problem is legality, make legal

5:50

drugs. The drugs sold in

5:52

pharmacies are legal and in

5:54

many cases no less addictive.

5:57

There is a drug for

5:59

every complaint. three dozen for

6:01

the common cold virus. Some, like

6:03

a simple nasal spray, are

6:05

addictive and can lead to a

6:07

chronic condition which locks you

6:09

in for life. It's the same

6:12

basic business model as the

6:14

street dealer, but with less friction,

6:16

lower risk, and much better

6:18

optics. The barrier to entry is

6:20

that the clients have to

6:23

be, quote, sick. Now consider supermarkets,

6:25

where the market is perhaps

6:27

saturated but the total addressable market

6:29

is almost a hundred percent

6:31

of the population. Everyone eats. Junk

6:34

food can be quite addictive

6:36

and can make its users sick.

6:38

Sick junk food junkies might

6:40

turn to pharmaceuticals without changing their

6:42

habits, compounding the problem. Now

6:45

the cycle is complete. As bad

6:47

as such addictions might sound

6:49

and as widespread as they are,

6:51

the current global addiction is

6:53

yet worse. The addiction to digits

6:55

pandemic. The first case of

6:58

addiction to digits is in terms

7:00

of fiat currencies. They have

7:02

the benefit of transacting with everyone

7:04

in a particular country. It

7:06

is very convenient to use those

7:09

digits as a medium of

7:11

exchange. Those digit addicts usually say,

7:13

I can't buy anything with

7:15

Bitcoin so I'm not going to

7:17

buy any. They are saying,

7:20

I am addicted to the benefit

7:22

of a convenient medium of

7:24

exchange even though my purchasing power

7:26

will deteriorate. Some people realize

7:28

that money is usually static. It's

7:30

active when people are transacting

7:33

and passive when they're just keeping

7:35

it for later. To be

7:37

an effective store of value, money

7:39

needs to preserve or grow

7:41

its purchasing power over time. A

7:44

person should not earn the

7:46

same money twice. When

7:48

I have savings, I

7:50

should not be forced to

7:52

actively manage it. So

7:54

whole market segments focus on

7:57

the passive use of

7:59

money. It is strange how

8:01

the system forces you to actively use

8:03

your money to solve the passive use. It

8:05

kind of defeats the purpose.

8:07

Still, you can't let it

8:09

degrade because of inflation. Here

8:12

there are a few main

8:14

categories, bonds, real estate, equities,

8:16

gold, and art. The bonds

8:18

benefit is its promise

8:20

to return more digits after

8:23

some period. Quote, guaranteed by

8:25

the state. And they truly

8:27

do. They give you the benefit of increased

8:29

digits and at the end of the

8:31

period even with the more digits your

8:33

purchasing power is less than when you

8:35

started. Still it beats the ones that

8:38

just saved. The bond digit addicts will

8:40

not buy Bitcoin because Bitcoin in

8:42

cold storage pays no interest. The

8:44

real estate benefit is a digit

8:46

yield in the form of rent and the

8:48

digit value of the property will be higher.

8:51

The value of the real estate is a

8:53

function of the returns it generates it

8:55

generates every month it generates

8:57

every month. The digit value

8:59

of the building increases because

9:01

the degrading of the fiat

9:03

digits happens faster than the

9:05

degradation of the physical structure.

9:07

Real estate addicts will not buy

9:10

Bitcoin because it is not physical

9:12

and does not pay any digits

9:14

for rent. Physical quote, engineers

9:16

invent products for people to

9:18

bet on against each other.

9:20

The whole premise of a stock

9:23

market is that you sell something

9:25

you have for another thing that

9:27

may increase in digit value.

9:29

Each trade has a winner and a

9:31

loser, but like in a casino, the

9:34

house always wins in the end. Just

9:36

another addiction with another kind

9:38

of dealer. The Bitcoin system

9:41

is unifying everything into

9:43

one. In a Bitcoin economy...

9:45

There are no losers because one

9:47

person's profit is not necessarily a

9:50

loss for another. Those addicts will

9:52

not buy Bitcoin because there is

9:54

no betting system in Bitcoin and

9:56

can't do call or put options

9:58

or other illusionary... engineering things so

10:01

the insiders benefit. If you just

10:03

buy Bitcoin and HODL for when

10:05

you need it, then all the

10:08

dealers of that addiction will be

10:10

out of business. Gold addicts are

10:12

addicted to the metal without realizing

10:15

how it can be used against

10:17

them. How can anyone tell us

10:19

how much the market cap of

10:22

gold is if no one can

10:24

tell us the exact weight digits

10:27

of gold that it is founded

10:29

on? This is the true Schrodinger's

10:31

cat these days. Now, owning gold

10:34

is represented only by a number

10:36

on a screen, reducing it to

10:38

the same status as Fiat. With

10:41

Fiat currencies, one piece of paper

10:43

has the number one on top,

10:45

and the other has the number

10:48

100 on top. We do not

10:50

care that they are on the

10:52

same paper value, but we value

10:55

the digits that are written on

10:57

the paper. The gold digit addiction

10:59

is the same. But it took

11:02

longer to foster because everyone can

11:04

measure its weight rather than rely

11:06

on arbitrary numbers. Nobody can put

11:09

a hundred on top of one

11:11

kilo of gold and tell you

11:13

that it is a hundred kilos.

11:16

But since digital displays of gold

11:18

ownership have largely replaced physical possession,

11:21

it follows the exact same mechanism

11:23

as paper. Gold addicts say that

11:25

Bitcoin does not have any physical

11:28

or metal properties. So it has

11:30

no value and they won't buy

11:32

it. How about the art digit

11:35

addicts? Their views on Bitcoin aren't

11:37

very well known since they aren't

11:39

very active in the discourse. The

11:42

benefit of art is in the

11:44

emotions it evokes. When Bitcoin starts

11:46

to demonetize the art industry, we

11:49

will see art digit addicts defending

11:51

its value. Art should be art.

11:53

It should not be a method

11:56

for a store of value. The

11:58

next digit addiction dominating today's society

12:00

is loyalty programs, like air miles

12:03

and loyalty points for discounts, promotions,

12:05

and exclusive offers. Even to this

12:07

day, my grandma is looking through the

12:09

brochure of every store in the

12:11

area to find a discount of

12:14

10 cent cheaper bananas per kilo.

12:16

Because the companies can't print

12:18

currency digits, they print loyalty

12:20

digits. They not only have much

12:22

greater purchasing power inflation than currencies,

12:25

most of the time, but they

12:27

also have much greater controls over

12:29

when, where, and how to actively

12:32

use them. The addicts of

12:34

the loyalty digits start orienting

12:36

their lives around the loyalty

12:39

program digits, and the dealers

12:41

love it. The next digit

12:43

addiction is social media.

12:45

People get addicted to

12:48

subscribers, likes, views, etc.

12:50

The benefit they provide is

12:52

the platform, the ability to reach

12:54

a far greater audience than through

12:57

face-to-face interactions. This addiction is

12:59

not directly connected to money,

13:01

but all those digits are

13:04

what promoters, sponsors, and everyone

13:06

is looking at. Spons

13:08

and subscribers automatically convert

13:10

metrics into value to

13:12

assign worth in fiat. The next

13:14

digit addiction is to video

13:16

games. Gameers get addicted to

13:18

the tokens needed to unlock

13:20

the special item. They start

13:23

chasing those token digits so

13:25

hard in the virtual world

13:27

that they forget to live in

13:29

the real one. As young

13:31

players age, their addictions often

13:33

graduate from game tokens to

13:35

other digit dealer systems. The

13:38

current FOMO digit addiction is

13:40

to block chains. Their benefits

13:42

include faster transactions, more anonymity.

13:44

and smart contracts to get

13:47

you hooked. If the creator is

13:49

not a direct scammer and truly wants

13:51

to give those benefits to people, he

13:53

is essentially saying that the benefit that

13:55

he gives is more important than incorruptible

13:57

money. The benefit of smart contracts

13:59

is greater than incorruptibility. That is

14:02

probably a misunderstanding that secure and

14:04

decentralized money is the base that

14:07

gives you certainty to build everything

14:09

on top. If you want to

14:11

launch rockets into space, you do

14:14

not change gravity to make your

14:16

use case easier to achieve. If

14:19

you do, you will destroy all

14:21

the sports where people need to

14:23

jump. All the tall buildings and

14:26

trees will be collapsing because it

14:28

will be much easier for the

14:31

winds to tilt them. You destroy

14:33

the way of life on Earth,

14:35

but it is nice that we

14:38

can go to space. If you

14:40

believe that the benefit is worth

14:43

it, then you do the work

14:45

and build it on Earth without

14:47

destroying it. Build on Bitcoin. The

14:50

next addiction is to the digits

14:52

of the custodians. Bitcoin ETFs were

14:55

hotly anticipated and have received plenty

14:57

of acclaim. But their custodians are

14:59

getting the punters hooked on

15:01

convenience. Give me your Bitcoin in

15:04

my custody because you are inadequate

15:06

to hold it yourself. Give me

15:09

your Bitcoin and I will give

15:11

you digits. The common trait among

15:13

all of these digit addictions is

15:16

that they offer some benefit in

15:18

return for dependence on certain digit

15:21

lords. Once people experience the benefit,

15:23

the benefit. It becomes the thing

15:25

that traps them. That is one

15:28

of the struggles of the Bitcoiners,

15:30

to accept that there are benefits

15:33

to all of the addictions mentioned

15:35

above. Bitcoin has its benefits and

15:37

limitations, but the benefits of Bitcoin

15:40

do not negate the benefits of

15:42

other things. This is the source

15:45

of the greatest conflict between Bitcoiners

15:47

and crypto bros. Bitcoiners should not

15:49

dismiss other crypto just because they

15:52

are shit coins. Instead, we should

15:54

enter the arena and outcompete them

15:57

just like we have been. for

15:59

the past 15 years. Some of

16:01

them do provide nice benefits

16:03

to get people hooked on

16:05

their blockchain digits. When we

16:07

as Bitcoiners do not compete

16:10

with them and learn what we

16:12

can we are going to deprive

16:14

Bitcoin of those benefits. Bitcoin probably

16:17

shouldn't adopt every feature that

16:19

emerges somewhere in the crypto

16:21

sphere, but competition fosters improvement.

16:24

As a former professional

16:26

athlete I can say that my

16:28

skills improved the most after losing

16:30

to a weaker opponent. When a

16:33

weaker opponent defeats a

16:35

stronger one, it only means

16:37

that he revealed a weak spot.

16:39

Just because the weaker opponent

16:41

won does not imply that

16:43

the rules are unfair and

16:45

need to be changed, or

16:47

the weakling should be disqualified.

16:49

That is the tactic of the

16:52

Fiat digit lords. If we

16:54

want to beat more powerful

16:56

opponents, i.e.e. Fiat currencies. We

16:58

must also face the

17:00

weaker ones. Bitcoin's obvious

17:02

weak spot was, until

17:05

recently, its throughput. Enter

17:07

the Lightning Network. Privacy?

17:09

Welcome to ECASH on

17:11

top of Bitcoin. The Battle

17:14

for Control continues in

17:16

a new domain. The digit

17:18

lords are capturing Bitcoin

17:20

digit addicts. The addiction

17:23

is so ingrained in all

17:25

of us. that even when

17:27

someone understands Bitcoin and its

17:30

implications, they transfer their digit

17:32

addiction onto Bitcoin. For them,

17:34

the addiction manifests in hodling, and

17:36

the object of their obsession is,

17:38

how much do I have, and

17:40

is the number going up? I hodle

17:42

and want the digital value to rise

17:45

to give me the fix that I

17:47

need. Still intoxicated by

17:49

other digits, they are the

17:51

easiest prey for the custodian

17:53

digit platforms. By contrast, Real

17:55

Bitcoin maximalists value proof

17:58

of work above all. My

18:00

primary goal is to build

18:02

a better life for everyone

18:04

through Bitcoin. Unless you're building,

18:06

you're just a digit addict

18:08

chasing your high with Bitcoin.

18:10

Different people get addicted to

18:12

different digits, but even if

18:14

someone benefits a lot from

18:16

their addiction, that does not

18:18

mean it is right for

18:20

you. Michael Saylor was instrumental

18:23

in helping me recover from

18:25

my Fiat addiction and going

18:27

clean on Bitcoin. At the

18:29

same time, he's hooked on

18:31

the custodian's digits. After all,

18:33

he has billions in the

18:35

custodian's digit ecosystem. He preaches

18:37

to people that it is

18:39

better to have more custodians

18:41

of Bitcoin. Let's go ask

18:43

all the gold bugs how

18:45

that thing turned out for

18:47

them. Do not get me

18:49

wrong. All the benefits that

18:51

he is saying are right,

18:53

and they are benefits. So

18:55

what is the difference? The

18:58

difference is in the control.

19:00

In the addictions described above...

19:02

The users get the high,

19:04

but they also get hooked.

19:06

At the same time, a

19:08

small group keeps control over

19:10

the digits the addicts use

19:12

and claims themselves as digit

19:14

lords. In all those digit

19:16

addictions, the mechanism is the

19:18

same. Fiat digits are controlled

19:20

by the airline digit lords.

19:22

Cryptobros are producing ever more

19:24

blockchain digits with benefits that

19:26

Bitcoin does not have, or

19:28

yet, to become the blockchain

19:30

digit lords. The custodian's digits

19:32

are controlled by the screen

19:35

digits lords. They all control

19:37

the addicts through the digits.

19:39

Another reason why the addiction

19:41

analogy fits so well is

19:43

that detoxing is so hard.

19:45

Wonder why orange-pilling is a

19:47

struggle? Have you tried to

19:49

take the cocaine away from

19:51

an addict or the insulin

19:53

of a diabetic or the

19:55

chocolate from a fat kid?

19:57

Resistance is natural. real estate

19:59

mogul who has spent decades

20:01

mastering his trade and amassing

20:03

a fortune is naturally going

20:05

to resist any force that

20:07

could demonetize his industry. The

20:10

hodler junkies profiting from Black Rocks

20:12

ETFs and similar custodians will naturally

20:14

resist any threat to the number

20:17

go up fix. That is a marriage made in

20:19

heaven. For the hodle-digit addicts, you

20:21

can see what infrastructure the custodians

20:24

are setting up to capture you.

20:26

Check the work of Whitney Webb

20:28

and Mark Goodwin in their

20:30

collaborative articles about that topic. Gold

20:32

provides a clear example of

20:34

how the digit custodians work.

20:37

To analyze Gold, you go to

20:39

a Goldsmith who can assess the

20:41

Gold's weight and purity. Not an ETF

20:43

dealer. The ETF dealer is just the

20:45

street pusher for the ETF digit

20:47

lords. They can describe the imaginary

20:50

trend lines on top of

20:52

their imaginary digits that are

20:54

disconnected from the metal. Unless

20:56

that particular ETF dealer has

20:58

a direct line to the

21:01

gold digit lords, his opinion

21:03

is absolutely worthless. He

21:05

is just the digit addiction

21:08

dealer pushing someone else's product

21:11

to get his cut. Bitcoin

21:13

ETFs are no different. Bitcoin

21:15

can be used as a real

21:17

store of value. In the

21:19

Fiat system, it is mainly, you

21:22

store my value. The digit lord's

21:24

model has its weaknesses. Some

21:26

try to exploit the model's

21:28

mechanics for their own benefit

21:31

and to avoid becoming addicts,

21:33

for example counterfeiting Fiat,

21:35

insider trading in the store

21:37

of value digits, hard and soft

21:40

nepotism in the loyalty digit programs,

21:42

hacks in games, all of the

21:45

above in block chains. Even though

21:47

they are not obeying expected addiction

21:49

behavior, they are still addicts by

21:52

chasing the same digits. The difference

21:54

is that if they succeed, they

21:56

are branded criminals or hackers by

21:58

the digit lords. They are using

22:00

the control system as designed

22:02

and demonstrating that the whole

22:04

system is exploitable. The exploiters

22:06

can attain enormous power by

22:09

those actions, but that is

22:11

not the intention of the

22:13

system. The digit lords need

22:15

control to remain a privilege

22:17

and guard it jealously so

22:19

that no one else can

22:21

own the digits but them.

22:23

That is why they need

22:25

us to be hooked. No

22:28

single person's effort can overcome

22:30

control over the digits. That

22:32

is why any system that

22:34

is disconnected from work will

22:36

fail in the Bitcoin era.

22:38

Bitcoin is the panacea able

22:40

to cure all addictions. There

22:42

is no free lunch in

22:44

Bitcoin. Once connected to the

22:47

open and permissionless Bitcoin network,

22:49

all wallets, All investments, all

22:51

loyalty promotions, all social media,

22:53

all gaming tokens, and all

22:55

block chains will benefit from

22:57

Bitcoin and their first mover

22:59

advantage. First, look at the

23:01

addiction the right way. Then

23:03

take responsibility to break it

23:06

and be free. Beyond the

23:08

number go up addicts. Analysts

23:10

are also addicted to the

23:12

models evaluating all the addiction

23:14

digits. If Bitcoin is something

23:16

genuinely new, then why are

23:18

we using the same old

23:20

modeling principles? The Power Law

23:23

model fits a number of

23:25

real-world phenomena, including Bitcoin through

23:27

most of its history. From

23:29

the growth of cities to

23:31

metabolic rates and many other

23:33

correlations relating to energy expenditure,

23:35

the Power Law applies in

23:37

a surprising number of cases.

23:39

The Power Law is a

23:42

functional relationship between two quantities,

23:44

where a relative change in

23:46

one quantity... results in a

23:48

relative change in the other

23:50

quantity proportional to a power

23:52

of the change, independent of

23:54

the initial size of those

23:56

quantities. In other words, one

23:58

quantity varies as a power

24:01

of another. Funny how the name

24:03

of the model coincidentally,

24:05

or not, suggests using

24:07

it for things connected to

24:09

power. Bitcoin is inseparable from

24:12

energy or power. So the

24:14

power law is probably the

24:16

proper tool. That is why the power

24:18

law of the hash rate will never

24:21

break, even if the fiat price

24:23

power law might. Since engineers

24:25

have built Bitcoin. Their

24:28

models explain the technology

24:30

best, but when it comes

24:32

to financial analysts, they are

24:34

not modeling reality. They are

24:37

trying to model the collective

24:39

psychology about particular digits.

24:41

Elon Musk is not going to

24:44

land a rocket on Mars powered

24:46

by likes or fanboys. The only

24:48

way is to model reality and

24:50

then build it. Reality is

24:53

uncompromising, and inspiration only

24:55

takes you so far. Either

24:57

the model is accurate and

24:59

the execution works, or the

25:01

rocket explodes. Over time, reality

25:03

will defy even the best

25:06

financial models, but they can

25:08

accurately capture what the collective

25:10

psychology values in the short

25:13

term. That's why the financial,

25:15

quote, engineers, hypnotize the digital

25:17

addicts and get them hooked.

25:19

In the meantime, Bitcoin continues to

25:22

do its thing. regardless of

25:24

what any of us think

25:26

about its future, it is an

25:28

uncompromising force of nature. Perhaps

25:31

there is a less fickle way to

25:33

evaluate companies. Let's take

25:35

invidia, the current FOMO stock.

25:37

The digit value unit of a

25:39

stock is connected to a digit

25:42

unit of the share. Neither quantity

25:44

is directly connected to energy

25:46

and therefore can be created

25:49

at will. But what if

25:51

someone maps the produced GPUs

25:53

by invidia? It is just a

25:55

hunch, but it probably follows a

25:57

power law. The production...

26:00

capacity of the chips is limited

26:02

by physics. The production of

26:04

the company can't break reality to

26:06

scale, but when you cross-reference it

26:08

with the stock price, you may

26:10

see when those digits are driven

26:12

by the current psychology of the

26:14

market or by fundamental value. Giovanni

26:17

Santastazi is the person to do the

26:19

math on that and say if he

26:21

can innovate a new way of evaluating

26:23

stocks with the power law model. I

26:25

may be talking out of my ass

26:27

for the stock's valuation application of

26:29

the model, but he proved that

26:32

this is the only model that

26:34

maps the journey to hyperbicronization. And

26:36

what about digits that no one

26:38

controls? Some digits are connected

26:41

to reality, which is very

26:43

useful. The digits for time, the

26:45

digits for length, the digits for

26:47

weight, and the digits for

26:49

temperature. Reality does not care about

26:51

what we think about what we think

26:54

about it. Reality just is, and

26:56

we use digits to understand it.

26:58

That is the language of the

27:01

engineers, not economists. The

27:03

numbers not connected to physical

27:05

energy are numbers backed by

27:07

a group's opinion. They

27:09

can be captured and controlled.

27:11

Engineers digits are free. They

27:13

resist control. Even those

27:15

who haven't mastered them can

27:17

benefit from those who have. They

27:20

are the ones building the roads, the

27:22

computers, and everything else we need

27:24

in modern life. The difference between

27:26

open digits and controlled digits is

27:28

that the addicts of the controlled

27:30

digits depend on the digit lords

27:32

for where, when, and how they

27:34

can benefit. You can't use

27:36

the digits of one country outside

27:38

its borders freely. You can't use one

27:41

company's loyalty digit points with its

27:43

competitors. You can't use the token

27:45

digits from a game to buy

27:47

a coffee. You can't buy microstrady

27:49

stock digits without a bank

27:51

account. Michael Saylor always says that

27:54

there is nothing worth buying in Africa

27:56

even if you had a billion dollars

27:58

to spend. That is... grossly biased

28:00

towards the passive use of money,

28:03

saving their purchasing power. If you

28:05

are a billionaire, it sure is

28:07

a problem. But if you want

28:10

humanity to flourish, the most important

28:12

thing is to build stuff. Africa

28:14

is a very important part of

28:17

humanity, and we need to figure

28:19

out what to build and how

28:21

to facilitate spending so they can

28:24

get to the point of caring

28:26

about store of value, billionaire digit

28:28

addiction problems, and even beyond the

28:31

addiction. Saving is just a partial

28:33

view of that one store of

28:35

value use case. My point is

28:38

not that Sailor is wrong to

28:40

protect his castle. Rather, we need

28:42

to build castles for everyone, and

28:45

then they can start protecting them.

28:47

His blind spot is that the

28:49

custodians now want to co-op Bitcoin

28:52

as a store of value, so

28:54

that they can continue the 2%

28:56

inflation game and remain digit lords.

28:59

The difference is that with Bitcoin,

29:01

the 2% inflation game runs on

29:03

a decentralized global standard. Different countries

29:06

and banks can connect to it

29:08

in profit, but that attracts the

29:10

degenerate custodians, companies, banks, and states

29:13

that will print digits on top

29:15

of Bitcoin. At some point, a

29:17

bank run on the most degenerate

29:20

custodian digit lord is inevitable. And

29:22

then, the domino effect of bankruptcies

29:24

that they can stop in the

29:26

fiat system is not something that

29:29

they can do in the Bitcoin

29:31

system. So buckle up. The biggest

29:33

volatility may lie ahead. The people

29:36

that we call poor do not

29:38

have access to custodian institutions, but

29:40

now they can run their own

29:43

Bitcoin nodes. For the first time

29:45

ever, unprivileged societies have the tools

29:47

to take back all the purchasing

29:50

power that was stolen from them

29:52

by the digit lords without spilling

29:54

blood. Take control of the math

29:57

you use and take control over

29:59

the money you use so that

30:01

you can take control of the

30:04

life you lead. Otherwise, there will

30:06

come a time when you will

30:08

beg someone in control to come

30:11

and save you. This message is

30:13

addressed to those without control, but

30:15

this message is also relevant to

30:18

those who already realize what Bitcoin

30:20

is and need to prepare for

30:22

the day when the addicts come

30:25

and beg us to save them.

30:27

We need to start working on

30:29

becoming people of virtue. We must

30:32

not become digit lords, but actually

30:34

detoxify people effectively and cooperate. Do

30:36

not sit on your hands just

30:39

holdling. Build the future. Anyone who's

30:41

been in Bitcoin for more than

30:43

four years, one cycle, should be

30:46

running a node and taking more

30:48

control into their hands. Anyone who

30:50

has profited from Bitcoin's appreciation should

30:53

be thinking about what they want

30:55

and how to integrate Bitcoin into

30:57

those goals. No coding or technical

30:59

expertise is required. All the analog

31:02

infrastructures need to be integrated with

31:04

the Bitcoin infrastructure. Barbers need to

31:06

start accepting Bitcoin and telling the

31:09

community. The barber infrastructure has to

31:11

be connected to the Bitcoin infrastructure

31:13

along with all the others. The

31:16

digit lord companies should consider replacing

31:18

air miles with Sats. Replace in-game

31:20

tokens with millisats. The digit lords

31:23

could do this immediately. This is

31:25

Bitcoin's ultimate imminent network effect. Inflation

31:27

in all the addiction digits will

31:30

accelerate. The digit lords will do

31:32

everything they can to keep addicts

31:34

in their digit drug ecosystem. At

31:37

the same time, companies that have

31:39

already adopted Bitcoin will actually save

31:41

them from bankruptcy. The digit lords

31:44

will then serve all of us,

31:46

and whoever gives them most benefits

31:48

will be the one that we

31:51

choose, and they will fight for

31:53

our vote and support. Until you

31:55

drop the digit addiction, you will

31:58

never be free. Reality is uncompromised.

32:00

for those companies or countries who

32:02

do not navigate its rules or

32:05

laws properly. This is exactly the

32:07

problem that the digit lords

32:09

face as long as the

32:11

digits are connected to reality.

32:13

Someone can always verify the

32:15

accuracy of the digits. I

32:17

can lie about today's date, but

32:19

you can verify. I can lie about

32:21

the weight of something, but you can

32:24

verify. May not be applicable

32:26

for gold. I can lie about

32:28

your height. But you can verify. I

32:30

can lie about the temperature, but

32:32

you can verify. Now for

32:35

the first time ever, money

32:37

digits are connected to reality

32:39

through Bitcoin. And everyone can

32:42

verify. Lies won't last long.

32:44

Just ask FTX, Celsius, and

32:46

Terra Luna Digital Lords.

32:48

They may control their closed

32:50

digit systems, but no one

32:53

controls reality. That is exactly

32:55

why we will win. Hashtag

32:57

Marty Bent. The digit lords are

33:00

addicted to that control, but people

33:02

are building solutions to transfer

33:04

control from the digit lords

33:06

to individuals. Whether the digit

33:08

lords realize it or not, they

33:11

are losing ever more digit addicts

33:13

to a system that is detoxing

33:15

them. Losing addicts is fine if you

33:17

can get them hooked on another substance,

33:19

referring back to the chemical drugs mentioned

33:21

above, that we looked at at the

33:24

beginning of the article. This is why

33:26

Digital Lords will do anything to

33:28

keep their addicts hooked on the

33:31

next digits. Now that people have

33:33

Bitcoin. Money inseparable from

33:35

reality. We have clear detoxified

33:37

heads. We will never go

33:39

back to the addiction. The current

33:42

dynamic is that the Digital

33:44

Lords will chase our attention, but

33:46

we will never give them back

33:48

the control. I will happily take

33:50

a discount on a vacation flight.

33:52

But I will not serve the

33:54

digit lord's agenda. I will not obey

33:56

the digit lord's vacation plans for

33:58

me, whatever law. loyalty digits they

34:01

offer. They will serve my plans

34:03

and orient their services around my

34:05

needs. One of my favorite phrases

34:07

from Jeff Booth. There is no

34:09

they. There is only we. It

34:11

is incumbent on all of us

34:13

to take control and become we.

34:15

The digit lords are the they

34:17

people usually refer to. In the

34:19

current system there are digit lords,

34:21

digit dealers, and digit addicts. In

34:23

the Bitcoin system. Addicts detox. Dealers

34:25

build detoxing tools and no one

34:27

is a digit lord. And brings

34:29

us back to Jeff's statement. There

34:32

is only we in the Bitcoin

34:34

system. Congratulations on reaching the end

34:36

of this article. Few people take

34:38

any time to digest anything more

34:40

demanding than a meme, but not

34:42

you. If these ideas are worth

34:44

spreading, please share the link. If

34:46

you think they are worth discussing

34:48

on a podcast, tell the podcasters

34:50

to hit me up. and I

34:52

would be happy to chat with

34:54

them. May we all live without

34:56

addiction and build what we want

34:58

for ourselves and for the kids.

35:01

Hashtag Greg Foss. P.S. Love to

35:03

all the Orange brothers and sisters

35:05

out there. Godspeed. If you are

35:07

using the bitkit wallet and you

35:09

are in the United States and

35:11

you are having trouble using lightning

35:13

because the LSP doesn't serve U.S.

35:15

customers, then I urge you not

35:17

to use a VP. because that

35:19

would be a way to get

35:21

around this and not have any

35:23

of this frustration or friction. Do

35:25

not do this because it would

35:27

get you a very easy to

35:29

use self-custodial Bitcoin and Lightning Wallet

35:32

that is simple and just works.

35:34

You know, don't use, there's a

35:36

bunch of different VPNs and a

35:38

lot of them except Bitcoin which

35:40

you could pay for from your

35:42

bitkit wallet like, you know, Nord

35:44

VPN or Surf Shark or Proton

35:46

VPN or Molad. or IVPN or

35:48

the internet access or a bunch

35:50

of other ones that would enable

35:52

you to do this with ease

35:54

and that you should probably do

35:56

anyway because vpns are good but

35:58

you should not do this because

36:01

this would make bitkit a fantastic

36:03

all-in-one wallet that you could just

36:05

use and didn't have to think

36:07

about. So if you want to

36:09

check out bitkit without a vpN

36:11

which is a great Bitcoin on-chain

36:13

wallet you can use my link

36:15

in the show notes. but definitely

36:17

do not get a VPN and

36:19

use lightning very easily and simply

36:21

if you are in the United

36:23

States. This message was not approved

36:25

by the Makers of Bit Kid.

36:27

When I first read this article,

36:29

I was waiting for the counterargument,

36:32

for Ivan to discuss the counter

36:34

argument, because I love the idea

36:36

of this kind of addiction to

36:38

this Fiat number go up, this

36:40

ever chasing empty points. But I

36:42

knew I could already hear anybody

36:44

who doesn't understand Bitcoin going how

36:46

is Bitcoin not just an extension

36:48

of this how is Bitcoin not

36:50

just the same empty points and

36:52

of course how do you Designate

36:54

or how do you make the

36:56

claim that crypto is that and

36:58

Somehow Bitcoin is not and I

37:01

really think this section is the

37:03

one that hit it the best

37:05

and What about digits that no

37:07

one controls? Some digits are connected

37:09

to reality which is very useful.

37:11

The digits for time, the digits

37:13

for length, the digits for weight,

37:15

and the digits for temperature. Reality

37:17

does not care about what we

37:19

think about it. Reality just is,

37:21

and we use digits to understand

37:23

it. This is the language of

37:25

engineers, not economists. Now I wish

37:27

he had expanded on this more

37:29

directly from the idea of someone

37:32

who was going to make this

37:34

argument, but I love the framing

37:36

that he kind of leaned on

37:38

here, is understanding that the difference...

37:40

is literally the fiat digit addiction

37:42

is that this is the difference

37:44

between digits that are fully trusted

37:46

and controlled by someone else and

37:48

digits that are actually meaningful in

37:50

some sense to something in the

37:52

real world because the real world

37:54

thing is the thing that matters.

37:56

The digits themselves are either a

37:58

reflection of what happens in the

38:00

real world or they are meaningless.

38:03

That is the key difference. And

38:05

the digits themselves are arbitrary. The

38:07

unit itself, it doesn't matter if

38:09

it's an inch or a foot

38:11

or a millimeter or a decimeter.

38:13

The unit itself is arbitrary. It's

38:15

about a standard so that you

38:17

can weigh it against, you can

38:19

measure it against everything else and

38:21

everyone else's. measurements and world and

38:23

reality, so that we have some

38:25

sort of relative weight, some sort

38:27

of relative measure for your sense

38:29

of passing time, the size of

38:32

your house or your cost or

38:34

the weight of something distant or

38:36

the height of something that we

38:38

can't see or that we are

38:40

standing at and we have no

38:42

perspective of. It is all about

38:44

being able to intercommunicate. and relate

38:46

the meaning of things in the

38:48

real world to each other. When

38:50

the digits become separate from the

38:52

real world and they begin to

38:54

reflect the simple control or the

38:56

simple ambiguous reward from some person

38:58

who's running or the master of

39:00

some sort of a system or

39:03

some spreadsheet, then it becomes disconnected

39:05

from reality and it becomes completely

39:07

meaningless that we even chase those

39:09

points. And this was always something,

39:11

this is one of the things

39:13

that bothered me about video games.

39:15

It's why I had to like

39:17

step away from video games. And

39:19

I actually think video games are

39:21

super valuable in a bunch of

39:23

different ways. I'm not even like

39:25

crapping on the idea of video

39:27

games themselves. But I've told this

39:29

story before of essentially when I

39:32

finally broke down and started this

39:34

show. I had been in a...

39:36

place where I was devoting tons

39:38

of my afternoons and when I

39:40

got off work to the game

39:42

League of Legends which I by

39:44

the way I still love I

39:46

think is a super fun game

39:48

I haven't played it in ages

39:50

and I don't intend to get

39:52

back into it but I'm still

39:54

super nostalgic for it and I

39:56

also just particularly love the League

39:58

of Legends series on Netflix. But

40:00

for anybody who knows, you know,

40:03

you get experience points and all

40:05

of this stuff and you can

40:07

spend it to get skins and,

40:09

you know, get some stuff to

40:11

arbitrarily, you know, make your character

40:13

cooler and whatever. But one thing

40:15

I would do and had become

40:17

a habit of mine and I

40:19

had been wanting to start a

40:21

show or to start explaining doing,

40:23

I mean, anything. I had been

40:25

in Bitcoin for a long time

40:27

at that point and I felt

40:29

like I had something valuable to

40:31

add... and I wanted to be

40:34

a part of it. I wanted

40:36

to build something, I wanted to

40:38

say something, I wanted to explain

40:40

something and teach it to people,

40:42

and I could not figure out

40:44

what that looked like, a podcast

40:46

at the time seemed like the

40:48

lowest barrier to entry, which it

40:50

was, and I 100% love the

40:52

fact that I did this, and

40:54

how many other things this opened

40:56

me up to, like I'm now

40:58

finally building things and doing way

41:00

more than just talking about Bitcoin.

41:03

But you have to start somewhere

41:05

and I was just trying to

41:07

find something that I thought would

41:09

be helpful. But my time was

41:11

being eaten by this game. I

41:13

was chasing these arbitrary points inside

41:15

this game that I had no,

41:17

that had no connection to anything

41:19

real. And I would come, you

41:21

know, come home from work and

41:23

try to get my, there was

41:25

this thing called first win of

41:27

the day and you get a

41:29

little bit more experienced points than

41:31

just from a typical game. And

41:34

so I would play. a couple

41:36

of games until I got a

41:38

win and then I'd shut it

41:40

down for the night and I'd

41:42

go do something productive. And I

41:44

came home from work thinking, I'm

41:46

going to do something productive, I'm

41:48

going to build something, I was

41:50

pretty jazzed about it, and I

41:52

took the energy and I literally

41:54

put it in the League of

41:56

Legends, I'm going to sit down,

41:58

I'm going to get my first...

42:00

win of the day and then

42:03

I'm gonna switch over to this

42:05

I was I was ready to

42:07

go and I literally thought the

42:09

game was gonna amp me up

42:11

but I really needed that kick

42:13

like I was genuinely addicted to

42:15

this game I loved playing it

42:17

I loved the the surge I

42:19

got and to the point that

42:21

when I wasn't winning I would

42:23

get like very very angry and

42:25

that night every once in a

42:27

while this would happen and I

42:29

would just be like what in

42:31

like an eight 9 game streak

42:34

of just lose lose lose lose

42:36

lose lose and there were multiple

42:38

times I remember there were like

42:40

2 or 3 games that night

42:42

where We were literally kicking butt

42:44

and then somebody does something stupid

42:46

and It all just the momentum

42:48

just immediately is killed and the

42:50

entire thing ran against us and

42:52

we lost like like so close

42:54

to tasting it and remember my

42:56

motivation and my energy was I

42:58

was trying to think I was

43:00

thinking that I was going to

43:03

build this up and dedicate this

43:05

to finally starting a show or

43:07

trying not to half start something

43:09

and leave it on the table

43:11

which I had done many times

43:13

before and I just kept losing

43:15

and kept losing and then I

43:17

turned it back on I said

43:19

I'm gonna do one more this

43:21

is so ridiculous I'm gonna get

43:23

my first win of the day

43:25

and then when I lost like

43:27

literally the eighth or ninth game

43:29

of the night I looked at

43:31

my situation and I looked at

43:34

myself and I realized how much

43:36

I was exhausted. I was exhausted.

43:38

I was literally furious. I think

43:40

it was literally close to midnight.

43:42

I hadn't even spent any time

43:44

with my wife. I was still

43:46

in my work clothes. I had

43:48

not eaten. And that was it.

43:50

I needed to go to sleep.

43:52

That was the end of the

43:54

night. And I just could not

43:56

believe that I had just done

43:58

this. That in chasing those few...

44:00

Completely meaningless points. It weren't going to

44:03

get me anything. It was literally going

44:05

to change the color of my character

44:07

that I had been playing with. Like

44:09

I was probably just going to buy

44:11

a new skin for Morgana or something

44:13

where she just has more cleavage. If

44:15

anybody's seen the characters and stuff in

44:17

that game, they are not shy about

44:19

boobs. You can learn everything you know

44:22

about the demographic that plays that game.

44:24

But like this was it. That was

44:26

what I was chasing those digits for.

44:28

And something about that

44:30

little microcosm of what

44:33

happened that afternoon. I

44:35

had like seen my ambitions, I

44:37

had seen what I wanted

44:39

to do, and what I had hoped

44:41

that work was going to achieve,

44:44

and then I had pause to play

44:46

a game and chase some

44:48

arbitrary points, which were going

44:50

to build me up, and I

44:53

was going to be excited, and

44:55

I was going to be more

44:57

productive. and I ended hungry

44:59

tired so frustrated and I

45:02

didn't even get my fix

45:04

I didn't even get the

45:06

stupid digits you know I was what

45:09

30 years old now at this

45:11

point and I just extended

45:13

that out I just laid that map

45:15

out for the next four years

45:18

and looked at what I

45:20

accomplished in the previous four

45:22

years and I just said what

45:24

the hell am I doing What was

45:26

this for? And I installed the

45:28

game that night. And it sucks too

45:30

because I had a lot of good

45:32

friends up there. I had a number

45:35

of people that I played with and

45:37

it was the only way that I

45:39

actually stayed in touch with them and

45:41

the only way that I would ever

45:43

converse with them to the point that

45:46

I've barely spoken to or seen any

45:48

of those friends since that day. Like

45:50

I couldn't, you know, like sometimes

45:52

you literally have to cut.

45:54

Like you have to change your whole

45:56

network you there's no like I couldn't

45:59

use that as an excuse to

46:01

at the cost of my

46:03

life, you know, at the

46:05

cost of every other motivation and

46:07

thing that I hope to

46:09

achieve and my family and my

46:12

time at home. And I'm pretty

46:14

sure it was the next

46:16

day or the day after, it

46:19

was literally within a day or

46:21

two that I started the

46:23

show. And it's also important

46:25

to note that, you know, the

46:27

podcast isn't an end game

46:29

to anything. The podcast was... I

46:32

mean just you know talk about

46:34

is like oh everybody's a

46:36

podcast or an influencer like I

46:39

never wanted to be either of

46:41

those things aside from the

46:43

fact that I wanted I wanted

46:45

a podcast because I love doing

46:48

this like this excites me

46:50

this interests me I love

46:52

getting up on stage and talking

46:54

to people and explaining and

46:56

telling stories probably more than anything

46:59

I feel like I'm a storyteller

47:01

or at least that has

47:03

always been something that I've I've

47:06

really loved but this was always

47:08

a way to do something

47:10

that I thought would be valuable

47:12

or that someone else might get

47:15

some use out of so

47:17

that I could potentially go

47:19

on to do more valuable things,

47:21

be more involved, actually have

47:23

an income that I have control

47:26

over, that I can direct to

47:28

projects and things that I

47:30

want to see in the world.

47:32

And that is really what it

47:35

all comes back to, including

47:37

the whole idea of digits and

47:39

why they matter or why they

47:42

are frivolous. Does it ultimately

47:44

connect back to something real

47:46

in the world? And this is

47:48

kind of the definition or

47:50

the concept of why it is

47:52

that fiat finance has become so

47:55

parasitic in such a force

47:57

of destruction. is it has become

47:59

completely disconnected from the actual value,

48:02

the profitability, the longevity of

48:04

any of the actual business practices

48:06

of these companies and financial institutions

48:09

because those things literally do

48:11

not matter. When trillions upon

48:13

trillions upon trillions of these arbitrary

48:15

digits are just flooding into

48:17

the system and you don't have

48:19

to do anything of consequence in

48:22

the real world in order

48:24

to chase and scoop them all

48:26

up in which the effect is

48:29

your ability to control and

48:31

direct all of the resources in

48:33

the real world by getting the

48:35

fake digits. That is how

48:37

Fiat manages to suck the

48:39

meaning. Out of all of our

48:42

economic activity and leads to

48:44

this end game of Fiat Finance

48:46

where literally everything is a token

48:49

and nothing means anything. We

48:51

all just chase bigger numbers and

48:53

more numbers as if it's a

48:55

video game and we forget

48:57

that the only reason any of

49:00

those numbers matter is their relationship

49:02

to what is happening in

49:04

the real world and that

49:06

is the only extent to which

49:09

it matters. which those numbers

49:11

are disconnected from reality make them

49:13

worthless. It makes the incentives that

49:16

it produces and the actions

49:18

and behaviors of chasing it, any

49:20

and all, in the realm of

49:22

disconnection from reality, a literally

49:24

destructive process. And this is literally

49:27

what makes Bitcoin different and why

49:29

it is so unbelievably valuable.

49:31

Because we have digits. We

49:33

have meaningful digits for weight. We

49:36

have meaningful measurements for length

49:38

for time for these things in

49:40

the real world that matter and

49:42

that we need to communicate

49:44

and we need to trade with

49:47

each other. But we have not

49:49

had anything but a giant

49:51

series, a giant set of networks

49:54

of fiat, of arbitrary tokens that

49:56

are subjected to trust opinions

49:58

and subjective control before and

50:00

beyond any connection to the real

50:02

world. world and for the

50:04

entire era of the virtual economy,

50:07

this has been the only thing

50:09

we have had to measure

50:11

value. And when I say virtual

50:14

economy, I mean paper representations. I

50:16

mean the trade of an

50:18

agreement of contractual obligations, of promises

50:21

of resources. This goes back to

50:23

the 15 and 16 hundreds.

50:25

That is when gold began

50:27

to lose. its hold on actually

50:29

establishing strong and the integrity

50:31

of our trade networks. Now it

50:34

still wasn't, that loss still wasn't

50:36

very meaningful for a very

50:38

long time. I think the tipping

50:41

point was really towards 1900 when

50:43

gold both saw its greatest

50:45

network that it was defending the

50:47

reality and the soundness of money

50:50

in the greatest economy it

50:52

has ever accomplished that in

50:54

the greatest economy it has ever

50:56

accomplished that in the But

50:58

then also the virtual economy grew

51:01

to a size where it became

51:03

so meaningful, it became such

51:05

an important part of it, that

51:07

gold essentially became paper. And then

51:10

World War I and World

51:12

War II were essentially the

51:14

unraveling of losing that independent standard

51:16

and the need to establish

51:18

a dominance in order to actually

51:21

have a global economy. Because when

51:23

your currency is entirely backed

51:25

by trust, well then... At the

51:28

end of the day, the most

51:30

powerful group or institution, the

51:32

one with the most ability to

51:34

execute and control through violence and

51:37

dominance, is necessarily also the

51:39

most trustworthy, because they can

51:41

always just kill the next most

51:43

trustworthy. The honesty of the

51:45

person that you were trusting doesn't

51:48

matter if the person can't defend

51:50

themselves from someone else's control.

51:52

The end game of Fiat was

51:54

always. Military dominance. But Bitcoin is.

51:57

connected to the real world.

51:59

Specifically because of proof of work.

52:01

Because proof of work is what

52:04

allows us to establish consensus

52:06

on which history is the

52:08

true history. And it is defended

52:10

verifiably by a literal wall

52:12

of energy produced by the entire

52:14

planet at the same time to

52:17

protect it. And because of

52:19

that consensus, we can also then

52:21

use those rules, we can have

52:24

integrity, we can believe that

52:26

the transactions and the ownership are

52:28

real, and thus, by verifying the

52:30

rules of the system, we

52:32

can know what restrictions every

52:35

participant in the network in the

52:37

economy based on Bitcoin had

52:39

to adhere to in order to

52:41

obtain the right to the value.

52:44

And thus it can be

52:46

trusted to connect it to real

52:48

resources in the real world. I

52:51

can sell my house for

52:53

Bitcoin, knowing that both I genuinely

52:55

have a house and both I

52:57

genuinely have a unit of

52:59

value in the digital world,

53:01

with a degree of ownership assurances

53:04

that are literally comparable to

53:06

my ability to own a house.

53:08

In fact, better. I own my

53:11

Bitcoin. Far more securely than

53:13

I own my house. Or at

53:15

least I guess that depends on

53:17

your attacker. When it comes

53:19

from the idea of a government,

53:22

I clearly don't own my house,

53:24

or a financial institution. I

53:26

have a mortgage, I pay

53:28

property taxes. The government can just

53:31

arbitrarily change the rules and

53:33

I can't move my house. It's

53:35

stuck where it is. Situation for

53:37

Bitcoin is exactly the same.

53:39

However, it's also very hard for

53:42

a robber to steal a house.

53:44

for the exact same reason

53:46

actually that it's easy for a

53:49

government to steal it. But if

53:51

somebody put a gun to

53:53

my head and I didn't

53:55

get to shoot them first, which

53:58

I'm working on being good

54:00

at, I definitely have hot wallets

54:02

and they would get some pick.

54:04

But anything at the value

54:06

of my house, I actually get

54:09

a profound and really kind of

54:11

crazy set of things that

54:13

I can secure it against in

54:16

ways that I can ensure that

54:18

it can't be taken from

54:20

me. Which is literally so

54:22

cool. You know, I should probably

54:24

think more about ways to

54:26

actually do this for hot wallets,

54:29

but it also adds a lot

54:31

of friction when you're actually

54:33

living on a Bitcoin standard. So

54:36

it would seem like the easier,

54:38

more... the far greater net

54:40

value would be in learning how

54:42

to draw my gun quicker and

54:45

more accurately. But the integrity,

54:47

little tangent, but the integrity

54:49

of those Bitcoin points, of those

54:51

digits, and all of the

54:53

rules around ownership, around consensus, and

54:56

around what it means to have

54:58

them, and how they cannot

55:00

be achieved by cheating the system.

55:03

by altering the rules makes it

55:05

the perfect way to begin

55:07

to measure value in the real

55:09

world and become consequential in genuine

55:12

trade networks of genuine resources

55:14

that result in economic prosperity

55:16

and trade. But the second those

55:18

digits do not have integrity

55:20

of the rules and ownership system.

55:23

or the consensus by thousands, hundreds

55:25

of thousands of participants in

55:27

the network, well then its connection

55:29

to reality is completely lost. And

55:32

the trust that others can

55:34

safely connect it to their reality,

55:36

to their resources, to the stuff

55:39

that they are selling, for

55:41

it to stand in place

55:43

to hold the value in place

55:45

of the house they are

55:47

trying to sell securely, that trust

55:49

dies. Its ability to meaningfully maintain

55:52

that connection disappears, which is

55:54

exactly why proof of work is

55:56

indispensable from the system, because it

55:59

is a... real world cost

56:01

to the protection of

56:03

its consensus. I know I say

56:05

this, I use this analogy a

56:08

lot, and I hope people kind

56:10

of understand the picture, but the

56:12

proof of work of every block

56:15

is literally a force field.

56:17

It is a wall of energy that

56:19

you cannot go around, you can

56:22

only go through, and it

56:24

takes exactly the same amount

56:26

of energy to attempt to

56:28

go backward. through its history,

56:30

making the assurances and

56:32

weight of value that you

56:35

can place in its transactions

56:37

and the trust in its

56:40

ownership, the fastest and most

56:42

secure in the world. Someone

56:45

tells you some crypto shit

56:47

coin is faster, understand they

56:50

mean faster, like the spreadsheet

56:52

updates faster on Google than

56:55

Amazon. And that update

56:57

is utterly meaningless. because

56:59

it doesn't mean anything.

57:01

It's just a spreadsheet

57:03

that updates. The only

57:05

metric that matters is

57:07

how difficult it is

57:09

to change that update.

57:11

How irreversible is the

57:13

ownership of the person

57:15

who just received that

57:17

transaction and Bitcoin is far

57:20

and away. The fastest and

57:22

most secure with no real

57:24

competitor at all. If you

57:26

don't understand that yet, I

57:28

would recommend, I think it's

57:30

Nick Carter's piece, it's the

57:32

Settlement Assurances, stupid. Of course,

57:34

I have it in audio

57:37

on this show. But there's

57:39

also a lot of other pieces

57:41

that are, that explain this idea.

57:43

One of them is, stop into Crips,

57:45

or is it beauty on? Stop

57:47

into Crips piece. Invalid blocks

57:50

need not apply. And I

57:52

always love the analogy that

57:54

he used. He called Bitcoin

57:56

an impenetrable fortress of validation.

57:58

Those are both great ones to un- that

58:00

concept. What I just said is confusing

58:02

to you or you don't understand why

58:04

Bitcoin has the fastest transactions. You should

58:06

listen to both of those before you

58:09

think you have a counter argument. But

58:11

anyway, this is going on quite a

58:13

bit and I've got to wrap things

58:15

up anyway. I've got to take care

58:17

of the kiddo. So thank you all

58:20

for listening so much. Don't forget to

58:22

check out the bitkit wallet and of

58:24

course get your Jade Plus. I hope

58:26

you guys liked my unboxing video on

58:28

Twitter and Noster. But if you neither

58:31

understand how sexy the J-plus is, nor

58:33

know what it one smells like, you

58:35

may or may not find out the

58:37

answer to both of those questions if

58:39

you watch the video, and get 10%

58:42

off with Code Guy, and get more

58:44

assurance over your ownership of Bitcoin than

58:46

you do of your house, that's how

58:48

you do it. You get a J-plus.

58:50

And then if you want a self-custodial

58:53

hot wallet... It's like super good and

58:55

has a fantastic design and UI. Bitcoin

58:57

and Lightning, then you should check out

58:59

Bit Kit. And if you were in

59:01

the US, you should not use it

59:04

in conjunction with a VPN. Don't do

59:06

it because that would be a sly

59:08

roundabout way to get Lightning. So stop

59:10

it. And I will catch you guys

59:12

on the next episode of Bitcoin Audible.

59:15

And until then, everybody. Take it easy,

59:17

guys. People

59:32

use drugs legal and illegal

59:34

because their lives are intolerably

59:36

painful or dull. They hate

59:38

their work and find no

59:40

rest in their leisure. They

59:42

are estranged from their families

59:44

and their neighbors. It should

59:46

tell us something that in

59:48

healthy societies drug use is

59:51

celebrative, convivial, and occasional. Whereas

59:53

among us it is lonely,

59:55

shameful, and addictive. We need

59:57

drugs, apparently, because we have

59:59

lost each other. Windleberry