02.22.2022

Every passage, on the record.

1. 00:00Event

   Today is February 22nd, and just to ground us in the desert of the real, price is $37,000 exactly US dollars. And price looks like it's about to fall off a cliff.

2. 00:00Quote

   Just to ground us in the desert of the real, price is $37,000 exactly US dollars.

3. 00:34Claim

   We're going to examine it from a Bitcoin lens to see whether or not this invalidates any of our previous work on why we think Bitcoin is going to win. And still, I have this idea in my mind still from the last podcast on how automation wins: the inefficiencies in energy transformation at the moment, if we project into the future, the problem is biological life requires energy much more so than digital life. Software will eat the world.

4. 00:34Reference

   Software will eat the world.

5. 01:05Claim

   The first sector, the first industry, the first company, the first person to be able to do that and automate things is going to have a massive advantage at accumulating a staggering portion of the Bitcoin supply.

6. 01:05Prediction · condensed

   You don't need general intelligence to come from one place; general intelligence will emerge from these individual systems getting more and more powerful, becoming more efficient at transforming energy from unusable to something that can be used for productive work.

7. 01:51Claim

   As the economy, which is just a collection of individual entities that group together, becomes more efficient at exchanging information about where energy needs to flow, out of that the economy will emerge something that can take advantage of these new, more powerful, more dense energy reserves that we have managed to turn from useless to usable.

8. 01:51Analogy

   Rather than going from single cell to multi cell, as that happens, and we become more efficient at exchanging information about where energy needs to flow in order to be as efficient as possible as an economy, out of that the economy will emerge something that can take advantage of these new, more powerful, more dense energy reserves.

9. 02:27Claim

   Out of our ability to share information at this speed, something has to emerge that can take advantage of that and take it to the next level. At the moment it is the network that is allowing us to do these things, and individuals who recognize that can act from a significant position of power because we can lower our time preference and reach out further into the future.

10. 02:58Reference

    If you're selling Bitcoin here because of fears of war or civil unrest, you have absolutely no idea what you own and why it is so vitally important for the world at this very moment.

11. 02:58Claim

    This is absolutely true.

12. 03:29Quote

    Bitcoin is really easy to buy. It's really hard to understand.

13. 03:29Claim

    It's significantly harder when you have no motivation to go down the rabbit hole. When you have a life full of luxuries in the Western world, you are less motivated to do the necessary work to expend the energy required to grasp just how impactful Bitcoin is going to be in the energy reserve game, in the energy transformation game, because people don't understand what life is.

14. 04:04Claim

    Every time there is an adoption cycle inside of Bitcoin, there are new people that have to take over the bridge from the Bitcoin world to the normal world, and there will be different segments of the population that need to be exposed at different times.

15. 04:39Prediction

    It has gotten far enough ahead where it's not inevitable, but it is certainly with a significantly higher probability than it was in the past, that Bitcoin will continue to churn out blocks.

16. 05:10Quote

    It will continue to live as long as it is fed energy.

17. 05:10Claim

    The most important thing we can do now is educate people on why they need those things, why the conviction will stand even in the fluctuation of the returns, even in the volatility that happens inside of the Bitcoin market.

18. 05:45Analogy

    The returns are the window dressing for the Trojan horse that is Bitcoin, that is bringing autonomy from the state in the form of money, in the form of transmitting across space and time energy to be directed at lowering entropy in our local environment.

19. 05:45Prediction

    Is mass adoption needed? It will eventually get there because people will capitulate, because you will not be able to ignore the signs anymore, because the individuals who adopt Bitcoin as their unit of account will be at such a gross advantage that you will not be able to ignore the results.

20. 06:29Claim

    We have seen individuals have outsized return or gains on their energy reserves because they realized that if I store my energy in Bitcoin, it can't be bled away from me through inflation, and other individuals will recognize this, that there is an opportunity here to store energy where it cannot be bought.

21. 07:04Claim

    The best thing that I can do is strengthen the network by unlocking energy in the physical world and storing it in Bitcoin and deciding not to consume it, because that's the only way that you increase your energy reserves inside of the Bitcoin system: you cannot consume the energy that you make available to those around you.

22. 07:04Quote

    If you decide to consume it, you are not huddling. You are cashing in.

23. 07:37Claim

    The Bitcoin marketplace, being that it is decentralized and permissionless, means that anyone can join, which means anyone that is bidding for a piece of the Bitcoin network is the absolute peak, the pinnacle of individuals out there who think they are going to benefit from this. You have reached maximum saturation of individuals who are willing to participate in that market.

24. 08:11Claim

    Whereas you look at something like the U.S. stock market, which is the largest market in the world, participants are limited. We're not achieving peak saturation of individuals who would like to participate in those markets because of the regulatory steps that have to be undertaken to participate.

25. 08:42Quote

    This was made for as an insurance policy on fiat currency.

26. 09:12Claim

    They will collude to make it appear as though the loss in energy is not from theft, but from any other factor that they can make plausible.

27. 09:51Quote

    You can either rely on the words of people that have been proven to manipulate and to deceit the users of a system nonstop since the inception of that system, or you can choose to follow the rules of code that cannot be broken, that cannot lie, where truth emerges based on the protocol.

28. 10:29Reference

    The map is the territory in Bitcoin.

29. 10:29Claim

    Whatever you see happen on the public ledger happened because we know that energy was expended in the real world, and energy has a cost to acquiring it and to transforming it and to then deploying it. So we know through the ledger that those things occurred.

30. 11:02Quote

    They make it more profitable to follow the rules than to break the rules.

31. 11:02Claim

    So yes, you shouldn't be selling now. You should be accumulating as much as you can, because it appears as though governments have never been more unstable than they are right now.

32. 11:02Event

    You look at the things that are happening in Canada. You look at the things that are happening around the world with Turkey, with Lebanon. These are all signs that government is getting weaker and weaker.

33. 11:40Analogy

    Would you let someone that lied to you run your household finances? If you did, you're asking for trouble.

34. 12:11Claim

    To take it to the next level, to take the adoption to the next level, we have to make this as simple and as basic to understand as we possibly can.

35. 12:42Quote

    Once they see that there's an alternative, it will become unacceptable.

36. 13:19Claim

    Guaranteed, mandated? Shouldn't use that word. Guaranteed to tell the truth, no matter how bad, no matter how good, it could not break the rules.

37. 13:19Quote

    And you'd have to be a fucking idiot to choose the person that lied to you.

38. 13:19Claim

    So yes, truth will win out. And that is why Bitcoin will continue to win and make individuals who accept it more efficient.

39. 13:55Quote

    Bitcoin knows nothing of the outside world.

40. 13:55Claim

    Bitcoin is the first global economy that anyone can access anytime, anywhere, regardless of political views or economic status.

41. 14:25Reference

    Next up by Bitcoin Archive: this is the European Union. We are open to Bitcoin with regulation.

42. 14:25Event · condensed

    The European Union says it is open to Bitcoin with regulation.

43. 14:25Claim

    There is no alternative. This is not a negotiation. This is a takeover, and it is a very organized, hostile takeover. It is just happening in another dimension, in the world of electric power projection.

44. 14:56Reference

    If we talk about Jason Lowery and the kinetic power projection versus electric power projection, it's just happening in another realm that we can't see. But a huge battle is being waged.

45. 14:56Claim

    Can we stack up the network? Can we provide enough defense to the network and to maintaining the legitimacy of the ledger before outside actors can shut it down?

46. 15:29Claim

    I think we've reached well past that point at this stage where it is just not feasible for a collective group of sovereign nations or a single bad actor to accumulate enough hash power to provide any threat to Bitcoin on a long term timescale.

47. 15:29Claim

    Any time that they actually try, it would again be the best case for Bitcoin, because it would prove the value add of Bitcoin to the economy. Value comes from the demand for something's usefulness. It just turns out that sending energy over time and space near instantly is incredibly valuable to everyone because it ups exchanges.

48. 16:06Claim

    If it ups exchange, that it will up energy transformation. And if it ups energy transformation, that means we have more reserves. If we have more reserves, we can project down to the future longer because we have a significantly higher chance of surviving, and we can start to build systems that condense energy further, packing more energy into smaller and smaller units, which are easier to store and last for longer.

49. 17:27Quote

    El Salvador is banking the unbanked with Bitcoin. Canada is unbanking the banked. Wild times.

50. 17:27Reference

    Up next from Bitcoin magazine: El Salvador is banking the unbanked with Bitcoin. Canada is unbanking the banked.

51. 17:27Claim

    This makes Bitcoin the best market for energy: it opens up to the most participants, and economies are able to scale based on the number of participants inside of that economy. The more exchange, the more actors, the more possible exchanges, the more division of labor, the more specialization.

52. 18:00Analogy

    Human beings sprung up as individuals, able to look after ourselves and find shelter, find food, stay warm, until we realized that we can actually do more if we start to participate in an economy with one another and share and pool resources. Now we're running the reverse of that in the digital world: we're starting with very narrow AI, things that can do simple tasks incredibly well, and as they do those tasks incredibly well, we get enough of those that we now need these things to start communicating with each other.

53. 19:03Idea

    There will always be a discrepancy between what is the true amount of TASOE, what is the total accessible supply of energy in an economy, versus what is being fed into the computer, into the software itself. And Bitcoin allows for truth only to be fed to the system.

54. 19:35Prediction

    As more and more of the narrow AI are able to connect to Bitcoin and understand whether or not they are being productive, that is where the reverse will take place, and from narrow AI will emerge a general AI, which is all one would have to do at that stage: understand the inflows and outflows of Bitcoin around the economy to be able to efficiently allocate energy.

55. 20:10Analogy

    It is going from using whale blubber as fuel to discovering that oil could be used, and the density of energy inside of oil versus the predecessor to that, that would be a very minor step in density as to what is to come.

56. 20:47Claim

    Once you know that information, once you are able to harness that information, in real time, every 10 minutes, be able to send energy to where it is needed, there is no dead time, there is no waste. And as you remove the biological element from that, it only gets quicker and more efficient.

57. 20:47Reference

    If you oppose Bitcoin, you won't have the money to oppose anything else.

58. 21:18Claim

    What is an evolutionary advantage? It's something that allows you to transform more energy, to store that energy in a more efficient manner, so that you can access it when the time is necessary. Bitcoin is more efficient than the legacy system.

59. 21:48Prediction

    If you wait around long enough, more of those energy reserves are going to flow to individuals who have adopted it, and pretty soon you will not be able to access the system any other way. You will have to trade value for value; you will not be able to use your fiat dollars in exchange for Bitcoin.

60. 22:21Quote

    But when it happens, it is going to rip faces off.

61. 22:21Prediction

    That moment is getting closer and closer every day, and you don't know when it's going to happen. But when it happens, it is going to rip faces off.

62. 22:56Quote

    This is a once in a species trade.

63. 22:56Prediction

    We will never, the efficiency will never go back in the bottle, and if the efficiency never goes back and the gains continue to rise up, people that want to participate in the network will flood their energy into the Bitcoin network.

64. 23:26Quote

    If you oppose Bitcoin, you won't have money to oppose anything else. It is written now.

65. 23:26Claim

    Either they're going to debase the currency and continue to let inflation run crazy and people will lose confidence and then look for alternatives, and they'll find the best alternative in Bitcoin.

66. 24:10Quote

    This is where the buck stops. This is where you can't fake the funk on a nasty dump.

67. 24:10Claim

    Maybe that only lasts a generation, people that realize well, this system didn't work, we're going to need an alternative, and then two generations from now we have people trying to do the same thing, but you can't do it with Bitcoin.

68. 24:41Reference

    Do like what's his name, the gentleman, there was a gentleman, Ruby on Rails creator, who says that he was wrong about Bitcoin. He thought in the Western world, there was no need for money that was free from state coercion.

69. 24:41Quote

    Now we see that that can change in a week. You know, it can change in 14 days to flatten the curve to two years.

70. 25:18Claim

    We are still living in a world where governments are basically able to excommunicate individuals based on political beliefs, and to do so without any court order, without any outside influence. And Bitcoin doesn't allow governments to do that, doesn't allow individuals to do that.

71. 25:18Claim · condensed

    It makes it so that all trade is based on energy transformation, energy gains, and the lowering of entropy in the world around us.

72. 25:48Event

    Imagine there's a bunch of turmoil now with Russia. There's just word coming out now that the invasions have started and Putin is making these speeches.

73. 26:19Open question

    Just imagine if the US continued down the same path that they have used since the Vietnam War in using economic sanctions as their main battleground. If they tried that with Russia, and Russia just so happened to troll the US and say that we're going to operate on Bitcoin, or we're going to start selling energy in Bitcoin, think about how the world explodes. It would be game theory on steroids, because you are getting rid of the petrodollar and alerting all other countries that they have the ability to do the same thing.

74. 26:58Claim

    Even sanctions imposed by the US government, no matter how bad they would be in the short term, if you cannot kill the system, if you can only prove its strength through sanctions, then overall it is a good thing.