#14 - All The Money In The World, Inflation And—Yes—Bitcoin

WORLD MONEY SUPPLY AS OF EARLY 2020

***My Math--which is a solid estimate at best***

615,836,000,000,000 

How I got there:

• When subtracting the global debt from all numbers

• Not using notional values for derivatives

• Overlapping both global wealth and real estate all in

• Subtracting the narrow money total (because it’s part of the broad money number)

• Subtracting the billionaires total (b/c total global wealth covered)

Crypto Intro

• Why The Dirtiest Word in Money is Crypto

• Too many smart guys can’t message it

  • Pomp’s the closest one

• Digital Currency is already adopted--and we have the tools to make it better

• Global Recession 2008

• The Housing crisis

  • What happened

  • Lehman Brothers

  • Cash is not in a vault

• Since Global Recession

  • Policies like auto-overdrafts at banks

  • Paperwork

• Satoshi Nakamoto

  • Founder of Bitcoin

  • True Identity unknown

  • Wanted to build something on trust to save time

    • No banks or 3rd parties gathering personal info and being relied upon for transaction

• We subconsciously believe that IG, Youtube, etc. are easy to use because we understand what we see

  • They’re CENTRALIZED

    • We don’t see the coding that happens beyond it

      • We trust that the people who do it know how

    • There’s a server in the middle that then connects everyone

      • The devices (comps and mobiles) are NOT connected to one another directly

    • Now think about money

      • Federal Reserve controls that

        • You have no say and are at their mercy

• Bitcoin

  • Fully Digital -- not physical

    • Everything is online and nowhere else

  • Transactions are Peer to peer (no third party)

    • Venmo is an example of what’s *not* peer-to-peer

  • Transactions irreversible

  • Cannot be copied

  • Decentralized

    • Belongs to the network, not a 3rd party

    • Transparent

    • The computers are connected to each other

      • Not to a server in the middle who then connects everyone

        • Like Instagram & YouTube

How It Works

• Runs on the blockchain

• Miners “mine” bitcoin to build the blockchain

  • An example of the complex things behind Bitcoin the most of us struggle to understand

    • And, therefore, make us hesitate in our adoption of BTC.

• Digital Is Already here

  • 8% of world’s money is actually physical

  • Milton Friedman quote on green pieces of paper

• THE LIMITED SUPPLY

  • 21 Million Bitcoins

    • Inflation Hedge

    • Venzuela example -- Chavez & Successor, Maduro

      • Another Link on Venezuela

      • Due to massive inflation, the Venezuelan Bolivar (their currency) became more valuable to use as toilet paper than toilet paper itself

Our Government In Coronavirus

• Printed Money

• $3.5 Trillion estimated in newly printed money by the end of the year

• Increased their balance sheet (ie spending)  by 40% in 2020 alone)

• Digital -- Already happening in Communist China

  • The Chinese Communist Government has been investing in its own digital currency that’s centralized and tracks a stable value of the existing yuan

    • Another Source

  • China long since cracked down on Bitcoin and other crytos

    • Because they threaten communistic control

    • For all intents and purposes, Bitcoin is banned in China