Why Bitcoin Matters in an Inflationary Economy

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0:59What we have is a growing gap today between rich and poor. And that gap is now dangerous. You know, inflation is going through the roof due to pure intention or incompetence. And Jeff's book, The Price of Tomorrow, will explain how that does not have to be. I actually don't know why this is such a hard concept. It's not a hard concept for you. It's not a hard concept for me. It's actually the most simple concept in the world that says our technology or the free market, the free market is deflationary, period. because prices fall to the marginal cost of production. And we invent things to create value.

1:41And we wouldn't use those things as purchasers or users of the services unless they provided more value than the thing that existed before. Market, I call it capitalism. My job is a better product at a better price for more people. And I think what's happening, Robert, is most people don't even understand the term capitalism anymore because you're on top of manipulated money. It's only crony capitalism. It's not actual capitalism. The free market, that's why I used specifically the free market. There is no monopoly power in the free market. No monopolies. Because prices fall to the marginal cost of production.

2:19Your calculator app on your phone or your calculator is free today because the line of code creating it is the marginal cost of production is zero. Can I explain something that you make very clear? when I was a kid, I could have the drugstore, I'd buy a roll of film, I put it in my camera, I take the pictures, I take it back to the drugstore, and they'd pay to process it. Today on this iPhone, what you say, there's billions of pictures being taken. And nobody's going to the drugstore anymore. Yeah. And so that should, that should all things being equal, if technology, So the problem is people are measuring technology almost like a vector instead of a base layer.

3:04And they're saying, okay, well, that makes sense in my photos. That makes sense in my music. That makes sense in my calculator. That makes sense here. But these other things should go up in price. And the only reason things are going up in price is your money is going down in value. You know what happens in a phase transition, right? So water looks the same, same, same, and then it turns to ice and it looks totally different. It's a phase transition and it acts completely different. If you're measuring water and then it turns to ice, you have a different measuring stick. Today, you have technology driving efficiency at a rate that is staggering.

3:45People don't realize it and it's not measured in our economy. So that efficiency makes prices fall. Those prices falling is deflationary. And it's not just deflationary, it's deflationary on an axis that is unbelievable. Most of the deflation is in front of us, not behind us. And so if you pull that together and you say, if that's true, then we should see evidence. And the evidence is all around us. The evidence is if that's true. Today, before COVID, there's$250 trillion of world debt to back an$80 trillion global economy. $185 trillion of that new debt has come in the last 20 years. Predictably, as technology has has driven down prices, there is this monetary stimulus trying to keep prices going up.

4:42And so people aren't feeling the prices coming down. In their world, prices are going up everywhere. And it's only because we're manipulating markets to make them go up. Very simply, what you're saying is the Fed, the government and all this, they're just trying to keep this bubble afloat. Yeah. And you can't solve a debt problem with more debt. And it's operating against the principles of technology. That's what you're saying, right? They're going against technology. These two massive forces are in our lives and there's nothing that the governments can do. They're trapped now. There's nothing that they can do to stop what will naturally happen.

5:18And what you're saying too, is that the policies that they're using and all of the manipulation they're doing is based on an old economy, the way the economy used to operate, which is not the way it's operating today. Is that right? Exactly. And one thing I would say, and I know a bunch of people say those rich people and everything else, but here's what's happening. You cannot understand an entire system by looking at its independent parts. And what people are doing is they're looking at a system problem that has jumped up against technology and looking at the individual parts. So I'll give you an example.

5:58People think housing always goes up. And without asking, would housing go up without$185 trillion of stimulus in the last 20 years? And so people are looking at their individual parts and then looking for solutions out of those individual parts without measuring the entire system. And that includes the Fed, and that includes governments all around the world, because they're trapped. And I wish they weren't trapped. It's going to provide a break to society. I wish that wasn't true, but they're trapped. The reason Jeff's important right now is this here is a 1964 Kennedy half dollar, and it's the last pure silver half dollar.

6:43And then from there, it went to fake money. and then we went to this stuff here which i call toilet paper today and then this here is a zimbabwe dollar and i think it's 10 10 million or whatever it is this won't buy you an egg and i had the good fortune of being in zimbabwe when it collapsed or the bad fortune so i've been in the best places at the wrong times and stuff like this but there's also a silver lining. And that's why I want to have Jeff Booth on here because his book, The Price of Tomorrow Fits Everything in My Belief System because I'm a student of Dr. R. Buckman's from Fuller. And I said to Jeff a while ago, he's the new Bucky Fuller as I'm concerned because we're talking about inflation today.

7:34But in reality, pure capitalism, the price should be coming down, not going up. But it's only going up because they're playing games with money, as Bucky Fuller said. And it just upset him to no end. So tell us how you came about the price of tomorrow because what you're talking about was Fuller's generalized principle called ephemeralization. Ephemeralization means you should always be able to do more and more with less and less. But what we're doing is less and less with more and more. So we're completely opposites. When I saw the price of tomorrow, I said, you're on it. So the generalized principle calls prices should be coming down, but they're going up.

8:16So would you explain that paradox or dichotomy for us? Yeah, and it actually should be really easy to see. It should be really simple for people to see. Because if you just start with something that is true for sure, the natural state of the free market is deflation. And why would that be true for sure? because every single thing an entrepreneur needs to create has to compete with what was there before. And you as a user or buyer of products or services only use the things that provide you more value. You're part of the choice. So how could it be every entrepreneur to compete in a free market has to compete more value for more value to give to you and you choose the things that provide more value.

9:05How could it be the prices go up? And so what you see there is the natural state of the free market is deflation and technology makes that faster and faster and faster. In other words, you should be living in exponential deflation. Every year, prices should fall at a faster and faster rate as the entire world heals and gets richer from that structure. But you don't measure that structure from the natural state of the free market. In other words, what you're actually measuring is you've never lived in a free market. You've never lived on a global free market. You believe you have. You believe because your market is better than other people's market, but no one on the planet even has a reference point for what a global free market looks like.

9:48This is what Becky was describing. This is what I describe. What does that say about the market we measure in? It is a centralizing market. It is a control structure designed to siphon away your wealth and success. We have technology that's making things cheaper, and we have a system that's trying to make things more expensive. And so what I was looking for is a solution, any solution. Could the existing system change itself to provide abundance to humanity? Or would this existing system fail through war, revolution everything else like it has done in the past and i looked and i wanted to actually find a solution out of the existing system but i what i realized is is system changes why kodak doesn't change themselves why blockbuster doesn't change themselves there's too much inertia in the system and so out of everything that i found then i found uh then what i and i was already in bitcoin but I became all in.

10:51I don't know how to say all in, it's not all my wealth, but I thought this is going to be the best thing to be able to transition humanity from one system to another system. And the new system would be a way better upgrade for humanity. It would be beneficial for everybody. So why is that? Why is that? What do you use as a technology guy? So the technology, there's a lot of pieces to this question to do. Exactly. A lot of pieces to this question. But first, the scarcity. So you either have abundance and money and scarcity and everything else, or you have scarcity and money and abundance and everything else.

11:29We are moving to a more and more digital world where prices should come down as things become information. so as things become information if you think about my I used to buy CDs for$19.95 per CD there's there was a whole infrastructure of people that said only these artists can be seen now I buy unlimited music for$9.95 a month and so I get way more for less and it's the way things are moving in everything that means that you either have you have two choices if you run an inflationary system, which you create more money out of nothing against that system. Which is going on with the Fed and the Treasury.

12:10Exactly. That's the world we live in today. Then what you do is you concentrate all power in government. It just keeps on moving. 26 % of GDP today is government spending, and it has to structurally get more and more and more. You centralize all control in government. and proven throughout history if you centralize all control in government it looks really bad for human communism exactly you know people the definition of commune is central central control government and central control economy so so so the question yes so so that path is a given and that's path is where we're going um and by the way what if you think about what how instead of getting mad at people, think about them acting in their own rational best interests.

13:01The government pushes up prices unnaturally. So house prices go up, rent prices go up. There's a whole bunch of people that don't have those houses or assets and they lose from that. And who do you think they go to, to help save them from the prices that were manipulated higher in the first place? Same government. Right. And so back to the same government. So you have this political divide with both parts of the government saying the same thing it's their fault it's their fault when it's actually the fault of base money right and but it's natural because people are incented to invest is to say i need money desperately to feed my family so they empower so that's so that's where the frustration comes boils to the surface too exactly so what they do what they do is both both republicans and democrats are fighting over a battle up here and it's way down on base money.

13:54That's a different. And so both parties are printing more and more money and trying to drive inflation in a system and it's unfixable from the system. And so what you get is a whole bunch of people yelling at each other, thinking that they have the answer and they're all wrong. Currencies shouldn't measure other currencies. Currencies should measure prices. So if you measure prices in Bitcoin, you'll see all prices fall forever. you'll see it's perfectly matches it in fact it's the first global free market that's ever existed and it's imposing a discipline the prices fall forever it imposes a discipline i wrote about in my book it imposes a discipline book uh bucky wrote in his book it's the first time ever that that exists because it's open decentralized secure protocol bounded by energy and so you're saying bitcoin it's imposing it's imposed it's imposing a discipline that we wouldn't choose.

14:51We wouldn't allow the existing system to collapse. We think there's a savior. We think there's Elon will save us, Trump will save us. By the way, it's not those people or some of them are better than others, but it's a system problem that cannot solve itself from that system. A credit-based system has to grow forever exponentially and by doing so it has to steal your money exponentially. The other system is because it's bounded by energy. It doesn't care if we want to print$20 trillion,$100 trillion, which doesn't care if you want to steal more money. It doesn't care. Every 10 minutes, it has a new block and it's imposing a discipline.

15:33So meaning this house I'm sitting in right now was 300 Bitcoin five years ago. This house I'm sitting in right now is 20 Bitcoin today. This house I'm sitting in right now will be one Bitcoin within five years. It imposes a discipline by that energy-backed system. As long as it stays decentralized and secure, which I believe it's inevitable that it does, it reprices everything in the old system over time. In other words, you're never too late to buy Bitcoin. You're never too late to move your time from the system that's cheating you to the system that's helping you, ever. You should learn why you should go into self-custody.

16:17You should learn why you need to protect yourself in the new system. You should not trust a whole bunch of scammers in the system and centralize. But if you actually understand Bitcoin, you are part of a network that cannot be cheated. And you are part of, so you're part of an honest protocol that is imposing what the Bucky wanted, imposing what I talk about, imposing it, that forever prices will fall relative to your Bitcoin. Now it will look volatile. You'll naturally think it's going up because most of your measurement is from the system that's debasing. But if you don't do that, if you just measure in Bitcoin, you'll see the perfect clarity of a global free market, the first global free market that's ever existing, that's having faster investor prices falling for you.

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20:26I make a distinct difference between Bitcoin and everything else. Because Bitcoin is the only thing that is decentralized and secure. And it's the only thing that will ever be decentralized and secure. Everything else becomes centralized. So if you had centralized money and think about through the long history of time, if you could control money, then what it means and the market has always been deflationary, the free market has always been deflationary. So prices are supposed to go down in the free market. And there's always been a human element because if you could control money, then that what means you get to steal the productivity of all of humanity and transit for it to you.

21:09So that's what Bucky Fuller was actually talking about. This is the natural law that prices should fall. But human greed creates this system where you could never allow that to happen because governments or people would rise to the top and always control money because they got a free handout from doing nothing on the backs of the entire global population producing productivity. So that's why gold always failed, because it had to be centralized. And once you could centralize it, then you could change the rules of gold. So constantly throughout history, that would fail. Now, Bitcoin, then you have to ask about Bitcoin.

21:52Could it actually exist in a decentralized and secure format? And what would that look like? So most of my research, most of my deep was, how could this exist? could it actually, if you thought a system was so powerful against you and all of that system would come and attack Bitcoin and what would they say, what would they do, how could they kill it? All of my research tried to come in and disprove my hypothesis. And what I found is Bitcoin gets more decentralized and more secure every year and it can't be stopped. And then every other - It can't be stopped. It can't be stopped. It will not be stopped.

22:28It's imposing that discipline. And every other blockchain that says, I do this, I do this, I do this, is trying to steal the kind of, I can move fast, but they all centralize. They have to centralize. And by centralizing, then people say, I'm going to offer decentralized finance on top of a centralized blockchain. Now think about that for a moment. It makes no sense. You would just use a database because a database is much cheaper than a blockchain. When people say blockchain, I want to pull my hair out. It's only Bitcoin and everything else is completely nonsense. And then, because what that does is it forces prices to fall for everybody.

23:09It forces the removal of theft in money to everybody. And then now if you add on AI to that, all AI is is faster and faster, more technology moving faster, meaning prices should fall faster for everybody. And if you're measuring that in Bitcoin, prices are going to fall very fast if you're measuring in Bitcoin. But if you're measuring in any other currency, US dollar, Argentina, peso, any other currency, your rate of theft from the natural laws of physics, natural laws of economies, natural law of the free market, the rate of theft that you're paying to be able to live in that system and price everything from that system is picking your pocket and making it stronger.

23:57and nothing can stop that rate of stuff because it needs to keep on going because we have debt that can't be repaid. It's financial repression. So Jeff, I mean, the way I explain it is this, is that you have industrial age and you have information age, or actually you're in cyber age right now. Cyber age is so far beyond information age. And basically people are stuck in the industrial age. And they're using toolbox. their tools from a toolbox that bent for that time. Right. So if I can give people an example, because one of the classic ones everybody talks about is Kodak. Kodak invented the digital camera, the digital process, but they're afraid it was going to destroy Kodak, which it ultimately did anyway.

24:43But they wouldn't adopt, Kodak would not adopt to digital. And it's the same as email destroyed the post office department. So basically, that's what's going on in the world today. We're fighting two different ages. Industrial age, it's not even information age more, it's digital age. Yeah, what ends up happening in that is because it's moving so fast, it's easy to miss. I'm an entrepreneur, Robert. I know that you follow this. I know you understand how capitalism works through creative destruction and how the entrepreneurial process works. Why didn't Kodak see that? it's not because they have a whole bunch of dummies.

25:23It's because they don't understand that technology is moving so fast that that changes the business entirely. By the way, think about photos today. Photos today are abundant and they're free. And there's a whole bunch of other companies that have created value out of photos. The value comes differently though, right? The value doesn't come from producing or protecting your film sales. And the same thing happened in Blockbuster. So Blockbuster, by the time there are 9 ,000 stores, by the time download speeds went faster, the only thing they did in response was add candy aisles to the stores, right?

26:01And we laugh, and then we, ha, ha, ha, those people that are so stupid, right? How dare they miss how fast technology was moving and download speeds? Netflix was obvious, but it wasn't obvious. And here's the point. That's the same thing that the Fed is missing. And that's the same thing all governments are missing. But the problem is by trying to manipulate your market, you actually drive it off a cliff faster. So what's happening today, and because this system has all of us in it, we're banding together, and what's happening is the divide of politics, the divide of everything, is you're listening to screaming in a vortex, and everyone's talking about the wrong thing.

26:48They're missing it completely. But they're so sure of their point on an old system that they can't even listen to, It's none of it. It's none of it. What Jeff is talking about here is our schools, our banking systems, the Fed, all those guys are stuck in the industrial age. And that's why the change in 1971, when the dollar became debt, the only way they could prevent the whole industrial age from collapsing was print more and more and more and more and more money. and now we're going hyper on printing money than all these guys are saying we're going to save you we're going to give you free money and what you say is that's going to be your death it will be but i understand why they're doing it right i understand it's not bad people it's it's people caught in a system that they don't understand looking at from their point of view there's still the water and they haven't seen the ice and they can't see it and they can't see but if you just follow this this path what does technology do why does the ceo use technology why do you use technology it's to free your time right you you said it so brilliantly what does deflation mean it means your money buys more exactly good so we celebrate deflation in fact look at your iphone Everything on your iPhone is free, right?

28:15I don't pay for my flashlight anymore. I don't pay for my camera anymore. I don't pay for my guitar tuner, my AI assistant. Everything on it is free. How we personally, all of us, create these monopolies in companies and how the monopolies create monopolies is they understand that essentially if you grab the data, the digital signal, it becomes free over time and you can charge a little bit of money to everybody and make boatloads of money on a network effect. And we celebrate that price coming down over and over and over again.

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