Is Hyperinflation Coming? With Preston Pysh

[@DestructorEFX]

This was insane! Best podcast about macroeconomics and bitcoin that I watched in a long time!

[@leemate]

Preston is one of my absolute favorite bitcoiners. What a legend. Can listen to him all day 👏🏼 great interview

[@Luke-cj7gz]

Preston's interview with Saylor was the catalyst for me to really get into bitcoin back in 2020. Thanks, Preston!

[@zpatrik]

Same here!

[@decentri777]

Preston is simply amazing.

[@szaky7399]

How can you find this interview?

[@shawnk5619]

100%

[@TheBitcoinRevolution]

And how amazing that we have this opportunity to stack as such a low price?!

[@MrTypXY]

Insane episode. From now on, I won't accept any guest showing up without a set of prepared slides. Good job Preston, Peter, and the team.

[@Mj-ld1vm]

0

[@jp34604]

Peter and Co. given the current state of affairs I strongly strongly suggest that you begin every episode with the date of which it was recorded to put it into context given the incredibly Dynamic nature of the financial markets you're asking us to invest over an hour of our time and I for one am constantly attempting to put it into time context and suspect everyone else is doing the same bottom line it's really not fair to us however on a brighter note I patiently await the next episode every time thank you very much

[@vonbotteicher4377]

Send this comment to the top

[@qorazx]

Check when it was uploaded and you have your date

[@jp34604]

@@qorazx The recording date and the posting date are 100% uncorrelated they will sometimes record up to five or six episodes in a single week then spend countless hours in post production editing and then release the episodes at their discretion. So knowing the date and current price at the time of recording is the minimum requirement to rationally put the discussion fully into context. As an old school analogy imagine picking up a newspaper without a date including the year... inconceivable is it not? it's the first place where your eyes go.

[@x1k790]

When Preston speaks, it's wise to listen. Great interview Peter👍

[@jingmu1289]

Wow! Another great episode! You have had many great guests, but I have never seen one that explains this many complex economic concepts in such simple and meaningful analogies. I watched some parts of the episode several times. Thank you Peter and Preston for sharing your valuable insights with us!!

[@MikeStillUK]

1 min in and it’s gonna be a late night for me tonight. I just know I’m not gonna be able to turn it off. PS Never noticed before how blue Preston’s eyes are. Top quality set up Peter.

[@ConorChepenik]

Preston is the man. This should have millions of views. More people need to understand these concepts 🤝

[@RONIN_SATS]

Another good show. Preston is the man.

[@tcpwiz1]

Great job by Preston laying out the problem.

[@m00nboi]

What a legend Preston is.

[@Eudamonia-123]

Love Preston, a voice of reason…one of the few ‘adults in the room’ concerning macro economics and the Bitcoin ecosystem. Thanks for having him!

[@robtmil51]

@@thesolitaryadventurer they're an economic basket case

[@skipjack000]

Excellent show. Preston never disappoints and great job with the interview Peter. Thank you both.

[@ml9372]

I’ve heard Preston speak many times and it’s always worth it because I learn something new

[@bitcoinpoemspro1406]

Excellent show. I’ve heard of Preston Pysh but this is the first time really hearing him.

[@fayolaricotta226]

You’re amazing! Thank you so much for such a great podcast so much valuable information.

[@markh1772]

For those less familiar with discount rates and valuation of companies, what helps to explain what the discount rate is, is the following: The interest rate is an expression of risk. Interest on government bonds is low because of no or low risk, or ‘the risk free rate’ (before QE anyway0. The market ads more risk. Invest in a company and you deal with the specific market, the product, the location, political environment, with the price of wages in that sector, but also the competence of the management. Each item adds its own risk premium. So, If an investor says: for this company, I estimate all these risks and I add it to the risk free rate of 5%, and that comes to a total risk of, say, 15% (the discount rate) That means that if I am going to invest in this company, I want to earn a yield of at least 15%. So, simplified to one year, if the investor after studying the company, expects that the company can yield an annual future cashflow of 100,-, that means that 100,- has to be 15% of the invested capital. Ergo, the investor is willing to buy the company for 667,-. Basically you are reasoning backwards , starting with your risk profile, apply it to expected free cash flows and end up with the value (your value) of the company. Since everyone starts calculating the discount rate with the risk free rate as the basis, a lower risk free rate of for example 1%, will lead to a discount rate of 11%. Then , 100,- cashflow leads to a value of 909! And when you hear people speak about multiples in relation to valuation that is the same thing, only the 15% is expressed in the inverse, so in this case a multiple of 6.67 times the cashflow. Lots of ifs and buts but this is the gist of it..

[@TheBitcoinRevolution]

Good stuff.

[@Digitalfrosch5]

Thanks fore the explanation! I didn't understand it from the podcast alone.

[@retro8919]

I’m glad you laid this comment here. I think it would have made more sense for Preston to use the correct formula, meaning it’s FV divided by 1 plus the discount rate, which gives you the PV, he lost me when I listened the first time and didn’t see him using his formula. PV of future cashflow need to be lower, not higher, like he was saying but I get his point the lower the discount rate the higher the valuation

[@siggi757]

Thank you for the explanation. Very helpful.

[@mattpopovich]

Fantastic production on this. I normally listen to the podcast but after all the audio about graphs, I had to switch to the video and I'm glad that I did. Thanks Preston and Peter.

[@stunn3r312]

The Peter Schiff mug shot on the TV is glorious.

[@smann11b]

Podcast of the year bro!

[@lardov1]

great interview and thank you for sharing the slides. fully enjoyed it. Especially the simplicity of the explanation of the complexity

[@TyChe-yg2xf]

Well done guys, great show

[@iphoukwani]

This is so valuable, damn thank you so much.

[@adamcar9376]

This is SO good !!

[@wogi9412]

that was a fantastic episode. Preston is a great communicator.

[@Teevi82]

Really love your show! Adore it that's not all about bitcoin only, but so many opinions on macro perpective👌👌 Your podcast made my interest to macro economics all time high🙏

[@Seigo]

I love the dynamics of this episode. Weaving the narrative around Monopoly was a genius move to spark the conversation.

[@thewakakeboarder]

Killer slides Preston. Thanks for sharing

[@hiphop-hn6pc]

Preston always delivers to put things in good perspective

[@jonathanfleck7936]

One of my favorite interviews! I love Preston Pysh

[@darbsllim]

Preston's comparison to the Monopoly game makes this a must-watch piece for anyone just learning about Bitcoin. Great episode, I'll be sharing this one. Keep up the great work Peter & Preston! Bitcoin is lucky to have you both.

[@bubblegrass]

Really impressed with this episode. Thanks.

[@RenegadeAcre]

We're a small family-run microgreens farm in SC and long time listeners of this show. Thank you! ✊

[@creeptokid6733]

Preston is da man. Boom 💥 what a talk!

[@jmf10024]

Incredibly informative. Love the Monopoly examples

[@leonhead8413]

Great episode gents , and great to see Preston's charts! Preston always does a superb job of breaking the complex down for simple brains. Keep stacking sats.

[@kenlen8029]

Preston's reasoning has always made sense.

[@pedrocgrn]

Great conversation! Interesting that at the end Peter Schiff’s face was at the bottom right corner of the screen.

[@ThepoweroftheBitcoinnetwork]

Brilliant episode - slides were enormous help for understanding where we are. And it would be an utterly desolate place if it were not for Bitcoin.

[@copenhagen995]

Its great to see you invited Peter to this conversation

[@bwynn2424]

This pod will be referenced and gone back to for years. Holy shit was this good

[@magnetic-pulse]

WOW !!!! This video is EXCELLENT !!!!!!

[@astroswell]

Preston first brought me to the value investing then to bitcoin. The GOAT

[@KYFHOme]

Pete, Great interview. Preston is awesome. Please include the dates interviews are recorded on in the description.

[@fredericp64]

The monopoly analogy was indeed very effective at illustrating the problem!

[@janmcostar]

16:40 Does that mean that you DO get a debt jubilee when the equity and the ownership explode? If yes, how so? If no, why is it relevant here then? Are there any other circumstances under which it does explode? What does that explosion even mean?

[@MYMANVIP]

“HEY MYMAN PETE I lOVE YOUR STUFF” great podcast and great episode!!!! That damn monopoly analogy was perfect. Thank you both.

[@BaydreamR]

Geezus Peter that was a good one! TY

[@danielsmithwick455]

This is an awesome discussion! Thanks to you both!!

[@Luke-cj7gz]

This was very informative

[@d3ly51d]

I thought I believed in bitcoin before, but this blew my mind. What an ultra-macro view! Amazing!

[@theskintones]

Brilliant interview, the monopoly references are gold

[@fusion9619]

That inflation vector slide at 55:07 is so simple it hurts - because despite the simplicity, it wasn't obvious before seeing that. My mind is reeling.

[@kazzab7857]

Sensational. Thank you!

[@georgegale6084]

This is really great speculating. Luv’n It!

[@mzenk17]

I'm from Pittsburgh, appreciate the yinz reference, it's definitely commonly used here haha

[@albertotroyadiaz877]

This one is epic. Thanks a lot mate.

[@carrilee2299]

"So you think we're entering Weimar territory?" "Oh god yeah. That's not even hard" What a fkg nightmare of a situation. What a frickin' legendary interview. Thanks both

[@garetholiver6402]

Preston's just a good dude.....awesome show

[@johngammon963]

Thank goodness Peter said "to much socialism doesn't work" I agree 100% with him. You need a community, you just don't want that community diminishing your life. Which to be honest; does make a lot of sense.

[@cryptogold8753]

Preston is the man. The monopoly example really is something we can share with friends and family.

[@MrObnoxiousPod]

You know what I mean. Bitcoin isn't an actual debt jubilee.

[@eddy5476]

Best chat of 2022!

[@CryptoDave17]

great podcast

[@hodlbaek2440]

Keeping stacking sats and stay humble.

[@johnnyads]

Great interview. Opposite thinking re the price of Bitcoin always being expensive tho - for me every time, at every price point (including the recent ATH’s) I’ve always been amazed & grateful that I’ve been able to buy so cheaply…

[@rosstituteuk]

Good show. Thanks

[@davef5916]

LORDY LORD. Preston is the guy who got me to realise BTC wasnt a scam. Forever grateful.

[@888ssss]

lol.

[@gravity_dog]

Love the analogies and slides in this. Insightful as always Preston. I would love for entertainment sake to see a real debate between an MMT advocate and one of you hard money guys. Listening to this I seriously can't wrap my head around why some academics think MMT is even an option...

[@briandemint]

This monopoly analogy for the unfair concentration of wealth because of money debasement is amazing

[@chillfoo100]

Great show!

[@gmk134]

It would be really beneficial to have the Monopoly segments sliced to send this to family and friends. Easier to get them to watch a 5 min clip first. They are all High time preference nerds.

[@Spurs420]

So there are a lot of macro folks out there who would say that the probability of Mr. Pysh's hypothesis of Weimar style hyperinflation happening globally in the short to medium term to be unlikely to occur - a severe global recession, yes, but that's different than Weimar levels of inflation - I'd be curious to hear the opposing side or why its not likely to occur from perhaps Raoul Pal or Lynn Alden or a number of other smart macro folks out there.

[@fusion9619]

Raoul Pal just got wiped out, what a smart guy

[@mobysnick3841]

Pal is a Lunatic, takes his take on things with a rug pulled bag of salt

[@OPIXdotWORLD]

great chat...thanx

[@alfixen]

Great video. I just cannot imagine how governments would allow Bitcoin to be the currency used for everything.

[@asplmn]

because there gets to be a point where 'if you can't beat'em, join 'em." Governments are greedy (because they're comprised of humans), and so they'll eventually view it as "we can't afford to not take advantage of this..."

[@bp8404]

it shouldn't be hard to imagine. see thousands of years of gold governments didn't make gold money. gold providing legitimacy to government money. you have lived in the anomaly of history, not the norm

[@bananabrothers9759]

Lol. Bitcoin just lost 60% of its value, because of scammers and flawed constructs. It can never be a currency. Imagine the e dollar losing losing 60% of its value in a few months.

[@MothershipVR]

Preston is a national treasure

[@catliath5384]

Nice job, always appreciate Preston! A great teacher!

[@Spurs420]

Good show - when was this recorded?

[@lurkern]

Awesome episode!

[@josebr0]

47:03. The most important chart of the podcast IMO. If the central banks start QE again, buy.

[@GioCFC]

Awesome, thanks so much.

[@JohnDoe-zm3rw]

great show!!

[@DiiceForeveroO]

Whether hyperinflation happens or not I will be forced to sleep in a tent soon.

[@shanartisan]

Take it hardcore and move to the national forest. That's what I did and I've never regretted it.

[@OPIXdotWORLD]

why...? where...?

[@xavierryan4602]

I am in a position where I am being forced to stop taking the (not covered by insurance) cancer treatments that were actually helping. I am freaking the fuck out.

[@neilbarnard735]

Good Luck

[@shawnk5619]

Loved it

[@DeathBeach]

Yins im from pittsburgh and i laughed hard at that part of the interview

[@andrewhill1251]

So Preston thinks a transition from the dollar to Bitcoin is inevitable. It would be interesting to hear what he thinks the 2nd most likely outcome of hyper inflation will be. That would help to build confidence in his Bitcoin thesis.

[@Topsnap_Podcast]

Good Shit Peter!!

[@periferisk1096]

What was the date of recording this interview?

[@nickcousyn9361]

Thanks much!

[@betterdays7613]

Thanks so much to the What Bitcoin Did team for bring the Doctor of Economy on to let us know the real picture. Let's hope Bitcoin really takes hold next year.

[@MrTypXY]

Wait, what is going on with this present value calculation? If I google this formula I get: Present value = (Future value)/(1+ discount rate) With this formula, the whole example does not make sense as the present value is diminished by the discount rate. Am I wrong?

[@Baha2490]

You're right, it makes no sense. I laughed and stopped watching at that point.

[@jorgbachle525]

In germany there was an acadamic who refered the upvalue of the deutsch-mark as some kind of peoples-dividend. because everytime the deutsch-mark would increas in value against e.g. the italian-lira, the germans could spend cheaper holidays in italy. on even larger scale a scarce currency thats upvaluing make it possible for its citizens to aquire more foreing shares of equity. I know a story of an old wealth german woman who did quit well in weimar-hyperinflation because she had us-stocks. i wouldnt be too pessimistic for the usa to be honest. the eu is in a far wores postition. in germany everyone is getting 300€ in september as compensations for high energy prices, also a few other actions have been taking out thats some kind of ubi.

[@bubblegrass]

You could you use the monopoly analogy to describe how the US asset strips other nations by being the holders of the global currency. They are the players getting paid the $700 every time they pass go and the rest are getting paid $200.

[@lambchoppa3718]

I would like you to have a conversation with someone about tether, and the increasing suspicion that they don't have backing. Which is essentially monetary debasement of tether, and that tether is buying bitcoin... That's just as bad as the governments debasement

[@thaidude]

Monopoly analogy is really clever. I'll orange pill people with this.

[@stereodachs]

Thank God we have bitcoin 🧡🙏🙏 best quote from P. : „reality doesn’t care what your opinions are !“ 👍🏻👍🏻

[@charliewalter1274]

This framing of UBI is not accurate. If you divide the action of UBI into halves, Preston's description is the first half. The second half is that taxation would be based on several factors including inflation, total individual income, wealth hoarding, etc.

[@BarbellFinancial]

Fed is hiking rates to offset risk of hyperinflation. The bigger risk now is stagflation.

[@TheCajunBitcoiner]

Brandon is already talking about using Emergency Powers for gasoline price cotnrols and temporary halt on gas taxes - Skip to minute 40:00 on this convo lol, the start of price controls and UBi in effect

[@relbik66]

Love you both - thanks a lot for another excellent show 👍

[@MrObnoxiousPod]

Glad you enjoyed it