You've operated you've invested. You've seen things you saw Amazon drop. I don't know, what was it 95 in 05? Whatever the year was when the stock went down, 95, I may be wrong on the year. You've seen a lot. Okay? You've seen a lot of what's happening.
Yeah. So you seem a hundred percent certain about what you're talking about which his history doesn't favor, a hundred percent certainty. You know it is. Typically, you know, and it's, not even the'm, not even talking about the trust, but verify there's got to be. An element of skepticism, but you're like no, you's almost a combination of a person who has experience running a business investor genius. But also a salesperson you're, very, very good at persuading as well.
Are you a hundred percent certain about the future of bitcoin and that it has zero risk? There's, no risk that could be anything. I don't think you can state that no, I think that everything in life has risk. So there's, a there's, a black swan risk, an unknown and anybody intellectually. Honest has to admit that there is that risk that's not what I would say what I would say is you have to you've got a bucket of money, let's come back to Africa. Okay, you've got a.
You've got a hundred thousand dollars in Africa. You've got invested in something you've got to put it into a building and to land into an African currency into something else. What are you going to do? There is a hundred percent certainty that you're going to lose 80 percent of your money in most currencies over the next. Decade, there's, a hundred there's, a hundred percent certainty, you're going to lose 95 percent of your wealth over 30 years in just about every currency. And so you have to work through each of these issues and say, what's, the cost of doing nothing what's the cost of not taking a risk what's, the risk-free rate.
Well, I mean, the risk-free rate is the monetary inflation rate. So the price that you pay to not do something is the rate at which the money is collapsing. If you were Russian, they just lost.35 percent of their wealth by not doing anything in the matter of weeks. So in this particular case, you just have to look at the array of options.
If uh, if you're an investor in uh, South America or Asia or Africa, I would say the risk-free rate is much higher for you right. The ins like you're in Lebanon. What are you going to do in Lebanon?
How about Afghanistan? How about Iraq? Right?
What are you going to do? Um in all those situations they're thinking, maybe I'll trust my money to tether, you know, Tethers run by Bitfinex it's, just a company. So why is it that people in many countries are more willing to uh trust, a company out of Hong Kong that's running a stable coin on the crypto network, then they're willing to trust their local bank. Well, because in fact, tether is probably a better bet than betting your money on most currencies in the world.
Other than the top 12 currencies. The rest are collapsing. Why do tether if you can just do the US dollar or USDA? Well, you can't that's. The point.Why do tether if you could just do the US dollar? Okay, how many people in Africa can walk into a Bank of America in New York city, open an account and then get the US dollar. None of them that's.
The whole point right and okay, I did it I'll give you an example. I put a million dollars into Bank of America in Argentina. When the dollar was worth one peso, because I didn't trust the peso, I did it. What do you think happened? The government basically shut down for one day. They sent an edict to the.
Bank saying, all dollars must be converted back into pesos. Then they went off the dollar peg, and they divided the peso ten to one, and I lost ninety percent of my money. Okay.
So why do tether instead of trust Bank of America in Argentina, you tell me right? Because what's the odds that tether is going to go to zero in the next year. If the odds were 90, your money is going to zero in the next year by putting it somewhere else.
Then you would think maybe that's a risk. I want to take. So you know, people. Are forced out the risk curve based upon the monetary policy, and in a hyper-inflating economy in Zimbabwe right, you're going to take everything. You've got you're going to buy anything.
I don't know, if you saw, um, you'll, buy toilet paper, you'll, buy boxes of cereal, right? You'll, buy anything, uh, there are pictures in Turkey people. And this is this year. People go into, uh.
They go into a car lot. And they buy all the cars. Okay. So here's, here's, the news story, the government in pounds 54 cars that. Were bought by a hoarder.
Someone had the temerity to actually convert their currency into automobiles, because they thought the automobiles would hold their value better than the currency. And then the government seizes their automobiles. Okay, if you look at every single war, right, the war always has the story of the speculators right? The speculators the Scot, the smugglers and the hoarders what's your crime. Your crime was not holding your money in the currency, which was losing 90 percent of its. Value, but rather deciding to buy too many automobiles. Now your crime was hedging right something like that picking at picking an alternative asset as a storehouse of what you perceive to be security until the sovereign comes back and does one of two things that they're good at sovereigns know that debt long term there's, the jubilee theory and also inflate your way out it says or seize and force conversion, which basically feeds right back into inflate your way out eventually that yeah, that all.
These countries will just inflate their way out and the currencies collapse and that's. Why they're all collapsing right? The currencies are weaker today than every one. I, and I think that's, pretty obvious, the dollar will also be printed to pay off the debt and uh that will just manifest itself and the dollar continuing to lose value against scarce assets. It will gain value it'll be stronger than the other currencies because they're just collapsing faster. So eventually we'll see a world where.
There's a dollar in the CNY right? If you're not a very powerful empire, you can't maintain your currency and that'll be the medium of exchange, and everything will be pegged to it or correlated to it, and then you're going to see monetary energy flowing out of weak property and weak assets into strong property, like, I would sell all the land. I have in Africa and convert to bitcoin, but I would sell all the land in Africa, and I would move it to Europe.
And I'd probably sell my land in Europe. Moving to the US, and I'd sell my land in the U.S. and move it to bitcoin you're, just swapping from a weaker thing to a stronger thing. And the definition of weak is a function of what's. The risk it'll be seized taxed or impaired right? Regulated, right so calculate that right will the government the jurisdiction that your property's NBC's confiscated, taxed away impaired.
And the last issue is we'll be inflated away. Right? The reason that bitcoin is magical is that there's only 21.A Million, um, I can create more real estate in New York city. I can create more cars. I can create more luxury watches. Furthermore, I can print.
Furthermore, I can create more gold. Furthermore, I can create more shares of stock. Furthermore, I can create more bonds. Furthermore, I can create any commodity their commodities by definition, given enough money and time I can create infinite of them. Bitcoin is a scarcity. Okay, name. Another scarcity in the world right?
And technically it's, not clear. There is another scarcity. Right? A scarcity is something of which it is. Absolutely capped if the price goes up by a factor of a thousand or a million, it is absolutely capped. That is not the case with gold.
Soybeans, silver stock bonds, real estate, single family, homes, ships, planes, trains, nothing else. Everything else could be manufactured. And of course, if the price goes up, the the the incentive to manufacture more will go up, which is why you know buying a house isn't necessarily going to be a great store of value in an inflating economy because you're going to have. Incentives for someone else to dilute the value of your house. If you do buy a house better off to buy a house on land than a condo on the 57th floor of a building. And if you do buy it on land better off to buy it on waterfront property.
And if you buy water from property better off to buy it on the beach, and if you buy it on the beach you're better off to buy it in the most desirable location of affluent intelligent people for the next 30 years, sure, pat has scarce, pristine that's. What you talked about right, you're better to be at scarce, pristine or as close as you can and that's that, and you can do that for 10 20, 30 years, that's, Palm Beach, that's, the Hamptons, right? You can figure that out now figured out for a hundred years that's. This is the problem right when you go out for the individual, though who cares for 100 years, the individual, how many individuals think a hundred years, though Michael institutions, think institutions do.
But how many even some institutional leaders. Only care about the return they're going to give you for a decade or two, they don't sit there and think about a hundred years. I think here's the issue.
I mean, that's that's, one of the issues we have with our current, uh, uh, political system. Even we have in America. You know, the guy who gets elected. He only cares about two terms how much can he really do it's time.
The issue is the assets reflexive. If is I told you that, uh, you could buy this digital asset, and it would lose it's all of its. Value in 17 years, then people start to amortize it down. And when it gets to be 12 years old, people start to discount if it's like you don't want to own a building in London, where there's a ground lease that expires in 37 years, right, that's, not as valuable as owning the land outright for a thousand years.
So if I told you it's good for 10 years, I think and the other thing is good for a hundred years. Everybody wants the thing that's timeless. And the difference is going to create a marginal. Difference in the price let's say, it's, two percent or three percent. Okay. So all the intelligent money go, they stamped in the thing, that's, two percent better. And when they stamp anything that's, two percent better liquidity is 10x more.
And then the money collapses out of the other thing and it is goes to zero that's. Why bitcoin cash collapses, bitcoin, Satoshi, vision, collapses, anything that's, sort of like the same thing, but not quite as good we'll go to zero that's. Why YouTube is YouTube right? It's. Like there, there is a tendency of winner take all in these things and uh, and it does matter right now you have children.
You have grandchildren right? I never met anybody that said, you know, I just I kind of want to keep my family generational wealth, intact for 12 years. But then I don't care anymore, right? You sort of care and and and there's one more element to this it's its, not just the ability to know that the asset will hold value 100 years out it's the portability, you know, if you're living. In, uh, you're, living in Nazi Germany in 1932, having portable property versus non-portable property makes a difference might make a life or debt. There are people that are dead because they couldn't move the property. Right?
It does make a difference to be able to move it. So you can't, you can't, blink your eyes and teleport, a billion dollars of real estate in Los Angeles somewhere else in the world. You can't, even move it somewhere else in the country being able to move the money from a city to another. City from a state to a state from a country to a country and from a counterparty to a different counterparty. All of these things are extraordinarily valuable the difference in life and death in many cases and that's.
What bitcoin gives you that you don't get with anything else. So if you enjoyed this little short segment from the podcast that we did here's another short segment to watch, or if you want to see the entire podcast click over here, take care. Everybody, bye-bye.