EDJ on Nostr: saifedean Just finished episode 239 of your podcast, the one with Michael Saylor. ...
saifedean (nprofile…2c9y)
Just finished episode 239 of your podcast, the one with Michael Saylor. Interesting discussions.
Especially the discussion about Bitcoin, credit, lending/borrowing etc. I'd say both of you made valid points, although I tend to lean more towards your line of thinking there. What surprised me a tad bit is that Michael brought up the idea of getting a risk free return on your Bitcoin. I think what he discounts is that growing adoption of Bitcoin means a growing number of people will ascribe less and less value to fiat money; the whole system is based on trust after all. A 5% "risk-free" return in what? Fiat? That's not at all a good promise, since its worth will keep on declining. The more people want Bitcoin, the less value they'll ascribe to fiat. This is where I tend to follow your line of thinking: sure, fiat money will always pop up somewhere and it might even work for a while, but only so long as people believe in it. Under a hard money standard people it'll simply have a much shorter expiration date. It'll finally be seen for the ponzi it is.
I think pointing out that this is trust based and therefore increasingly fragile, even though I'm convinced Michael knows this, would drive home the point that risk is always involved here. The only way to generate a return, would be to go out and take risk to acquire more Bitcoin. This simply can _not_ be guaranteed on a Bitcoin standard.. which is where I think the difference in opinion stems from. Michael still reasons from a fiat standard perspective in some ways. I wonder what his take is on Jeff Booth (nprofile…vlfj)'s thesis, laid out in The Price of Tomorrow.
Thanks for the excellent podcast 😃.
Just finished episode 239 of your podcast, the one with Michael Saylor. Interesting discussions.
Especially the discussion about Bitcoin, credit, lending/borrowing etc. I'd say both of you made valid points, although I tend to lean more towards your line of thinking there. What surprised me a tad bit is that Michael brought up the idea of getting a risk free return on your Bitcoin. I think what he discounts is that growing adoption of Bitcoin means a growing number of people will ascribe less and less value to fiat money; the whole system is based on trust after all. A 5% "risk-free" return in what? Fiat? That's not at all a good promise, since its worth will keep on declining. The more people want Bitcoin, the less value they'll ascribe to fiat. This is where I tend to follow your line of thinking: sure, fiat money will always pop up somewhere and it might even work for a while, but only so long as people believe in it. Under a hard money standard people it'll simply have a much shorter expiration date. It'll finally be seen for the ponzi it is.
I think pointing out that this is trust based and therefore increasingly fragile, even though I'm convinced Michael knows this, would drive home the point that risk is always involved here. The only way to generate a return, would be to go out and take risk to acquire more Bitcoin. This simply can _not_ be guaranteed on a Bitcoin standard.. which is where I think the difference in opinion stems from. Michael still reasons from a fiat standard perspective in some ways. I wonder what his take is on Jeff Booth (nprofile…vlfj)'s thesis, laid out in The Price of Tomorrow.
Thanks for the excellent podcast 😃.