The Holy Grail: Unit of Account

Every passage, on the record.

1. 00:00Claim

   the amount of excess efficiency that is derived from switching to a unit of account in Bitcoin terms, that advantage is so outsized versus the competition that eventually all individuals who have to make financial decisions in the market, which is everyone, will eventually switch to Bitcoin

2. 00:00Prediction

   We're not talking about unit of account for the entire world, for everyone to price things in Bitcoin. That will eventually come, right? There's no doubt about that.

3. 00:00Prediction

   eventually all individuals who have to make financial decisions in the market, which is everyone, will eventually switch to Bitcoin

4. 00:46Idea

   just how impactful an economic constant, the world's first economic constant, can be at approving decision making, energy allocation, and everything that makes your life better

5. 00:46Claim

   This is a once in a species opportunity to take advantage of just how impactful an economic constant, the world's first economic constant, can be at approving decision making, energy allocation, and everything that makes your life better

6. 01:21Reference

   I like a John Nash quote, John Nash, Beautiful Mind, Russell Crowe sort of looked the same, but not really.

7. 01:21Quote

   Our view is that if viewed scientifically and rationally, that money should have the function of a standard of measurement, and thus that it should become comparable to the watt or the hour or degree of temperature.

8. 01:21Claim

   the fact money is not a standard of measurement is incredibly backwards

9. 01:58Analogy

   constants are how we explore the universe around us. And if you think about in physics, the 26 constants that are in physics, you couldn't do any of the things that we know how to do without understanding and leveraging the constants... the pillars that we are able to latch onto and to find the next thing, the next bedrock for the advancement in energy allocation.

10. 02:28Idea

    The TASOE, the total accessible supply of energy in the system. We know what that is, we know what it's represented by, and we know that it's a fixed supply that has absolute scarcity for the first time ever.

11. 03:01Claim

    it starts as a collectible, then it switches to a store of value, then it goes to a medium of exchange. And then finally, it ends up at the holy grail, which is a unit of account. Unit of account is usually the last one to come into play because you have to fulfill the three other avenues first.

12. 03:34Claim

    price stability is a fallacy... Stability happens once everyone has not only learned about the favorable properties of the money, but they've also learned that everyone else knows about the properties that you know about

13. 03:34Quote

    But but price stability is a fallacy, right?

14. 04:09Claim

    the most liquid good in the economy forms the best source of money, or acts as the best form of money... you need yourself to understand that. But you also need to learn that everyone else has understood it, not that everyone should, but that everyone has.

15. 04:09Quote

    not that everyone should, but that everyone has

16. 04:51Idea

    it's an energy, it's also a tool that facilitates exchange, because the more energy the better off humanity is, and the only way that we are able to unlock more energy than on an individual basis is when we cooperate and we specialize

17. 04:51Claim

    the only reason that you wouldn't go all in now on Bitcoin, if you understand the concept behind what money is... is because Bitcoin facilitates those transactions and that exchange better than any of the alternatives have in history, and does so by an order of magnitude

18. 05:32Claim

    the only logical reason not to go all in is because other people might not have learned what you have learned. There is a gap between your knowledge and their knowledge.

19. 05:32Claim

    it's interesting to think about because the unit of account doesn't mean stability, right? In reality, we want it so that if the world changes, which it does all the time... prices should change

20. 05:32Quote

    the unit of account doesn't mean stability, right?

21. 06:09Quote

    We've been lied to.

22. 06:09Claim

    liquidity is key... you want as much of the most liquid good as you can possibly get. That means that your life force is stable now because you have the ability to exchange that good, the most liquid one.

23. 06:40Claim

    thinking of profits and losses in terms of gaining or losing liquid goods is essential to being able to divide the entire future into manageable tasks

24. 07:15Claim

    it doesn't require the entire world to switch to a unit of account of Bitcoin. It requires a select group of individuals who understand the power that they wield when they do so.

25. 07:15Prediction

    after they start receiving the benefits of being that much more efficient in their day-to-day activities, well, then those will compound and naturally energy will flow to those individuals because they are operating more efficiently. As that energy flows, people will recognize that there are outsized advantages to operating on a Bitcoin standard and their hand will be forced.

26. 07:48Analogy

    You can't opt out of a black hole. As soon as it begins to suck in everything around it, you're either going along for the ride or you can resist longer and let the black hole accumulate more and more of the energy resources around you. And then eventually you will have to capitulate.

27. 07:48Claim

    the number one thing is that it filters signal from the noise in markets immediately... We have the first economic constant. We now know the total accessible supply of energy inside the space at any given moment, based on the representation of what that 21 million is, who has control of that 21 million.

28. 08:25Analogy

    Before this, you had no idea how much your dollar of bottled water, how much that dollar was out of the total pie of energy. How much is the energy inside of that water bottle worth? What is the value? How do you know if you should be purchasing that or if it would be energy better allocated going out and sourcing your own water in another fashion?

29. 08:56Claim

    Anytime you add another variable to an equation, it significantly increases the amount of energy required to do the calculation. So the more variables that we can eliminate... the easier those calculations are going to be... if you're able to save percentages on those mental transactions every single time, the net effect at the end of the line will be a significant increase in efficiency.

30. 09:35Quote

    energy allocation is the market

31. 09:35Claim

    the data, which are the transactions, turn into the information when they are organized in a structured way, you're able to analyze them. That becomes the knowledge that you can then take and turn into intelligence.

32. 10:10Claim

    if it is easier for you to identify energy or areas where energy could be more efficiently placed than somewhere else inside of the market because you have removed the noise and you are focusing entirely on the signal, well, then you will have unlocked more energy and you'll have done it more efficiently than the competition

33. 10:10Idea

    if you replug that unlocked energy back into the Bitcoin network, you get a greater share of the TASOE, right? A greater share of the total accessible supply of energy in the first place. The more TASOE that you control, the more you can lower your time preference.

34. 10:46Claim

    essentially what we are doing here, if you use Bitcoin as your unit of account, is you are shifting the narrative in your own mind in the sense that utility becomes front and center

35. 11:21Claim

    we know that value is basically the reflection of a demand for something's utility. So essentially value becomes front and center.

36. 11:21Claim

    the question shifts on every transaction that you might have every single day, no matter how big or small, from do I have enough units to afford something, to does something's utility justify the percent of TASOE that I am going to allocate to it?

37. 11:21Quote

    And scarcity will do that to a person.

38. 11:52Claim

    for early adopters, almost nothing is worth choosing it over Bitcoin at the prices today. At the exchange rate that you are able to receive for the energy that you have unlocked in the physical world for what you were able to get outside of Bitcoin, almost nothing is worth choosing it over Bitcoin. Now you can't live a life like that though: you'll have your own personal areas of interest, and other people will have different things they're willing to allocate energy towards or not.

39. 13:03Quote

    The smart play is to add Bitcoin, to add Bitcoin and ignore investing into other things.

40. 13:03Claim

    once you see that the outsized returns in Bitcoin versus its competitors is real and cannot be stopped... your mind has shifted from using a unit of account where we didn't know the total supply, we didn't know that it was fixed, we didn't know the issuance schedule

41. 13:34Claim

    We didn't know that it was going to be a constant forever and that it was impossible to change by any entity or group of entities. It's once you know that then we can start to leverage that information. Think about the fiat debt game: the name of the game in the fiat world is to get yourself as much debt as you can possibly handle, because you are bringing forward other individuals' energy and leveraging it against them. It's pitting everyone against everyone else.

42. 14:07Claim

    Transfer that over to or purchase hard assets, things that cannot be inflated, things that cannot be made away, but things that have unforgeable costliness. Do that and then wait for inflation to kick in. Make sure that you are able to make the payments and then you are able to benefit from all the inflation. It's the short, the dollar long Bitcoin. That's why the speculative attack works... we know that on the fiat side of things, the debt spiral is in full force. They can't do anything except continue to inflate the bubble.

43. 14:37Prediction

    we know that Bitcoin's utility is going to increase, as that utility increases demand for the utility will increase, which when you have a fixed supply and demand increases, the only thing that can go up

44. 15:15Quote

    This is the number go up technology in Bitcoin.

45. 15:15Claim

    more and more energy is being pumped into the Bitcoin network, which grows the total accessible supply of energy in aggregate. And if you had that information before it happened and you were able to control more of the TASOE, well, then you come out winning on top.

46. 15:54Claim

    Bitcoin now at $40,000, whatever it is at now, is a better trade than it was at 10,000 or at 1,000, because more energy is coming into the system, which means it is becoming more decentralized, harder to change the ledger, harder to affect the ledger.

47. 16:26Claim

    the main thing behind choosing a personal unit of account of Bitcoin, and the advantages that you are able to lower your time preference significantly faster than the alternative

48. 16:58Quote

    Bitcoin wins, right? It doesn't have to be mass adopted.

49. 16:58Claim

    Bitcoin wins if a select group of people use Bitcoin as their unit of account, because they will end up controlling staggering amounts of energy as it will flow to those individuals who make more informed decisions. This will funnel larger and larger amounts away from the legacy system and into the Bitcoin system, which starts that flywheel of adoption again.

50. 17:32Prediction

    As price rises, Bitcoin becomes harder. The investment thesis gets better as the price rises. More miners equals more defense equals a better store of value.

51. 18:02Analogy

    having that constant for the first time ever, to be able to say this bottle of water that is a thousand sats. Well, I know exactly what that is comparatively.

52. 18:35Reference

    as Parker Lewis says, the Dallas Cowboys, or Real Madrid

53. 18:35Analogy

    I know what that is compared to, as Parker Lewis says, the Dallas Cowboys, or Real Madrid. I know those things.

54. 18:35Reference

    if we tie this back to the last episode about the communications technology and how as that increases, as we are able to get more, consume more information in a more timely manner, in a more precise manner

55. 19:06Claim

    we can use market information, we can use price and the data points that come from those transactions to eliminate the noise from the signal. As we are able to control more energy and the reserves, we are able to allocate it to where we best see fit. And that equals a better world for everyone.

56. 19:38Claim

    It's really difficult when you're just starting out in Bitcoin to be able to think in Bitcoin terms, but it just takes a matter of time. And as soon as you understand the benefits, it's easy to overcome those early learning pains of thinking in a new way, in a new paradigm, because the benefits will be enormous.

57. 19:38Quote

    So do yourselves a favor, look into or just start, right?