Crypto Fallacies Part 2 - If bitcoin were currency you would be begging for fiat

[@mooooooooooooove]

In my view there are three major issues with the public discourse around Bitcoin and crypto, and each issue compounds the former and amplifies the latter: 1. Most people who are very interested in Bitcoin are not trained in economics, so they don't have what it takes to disprove any of the propaganda peddled by the industry 2. Most people - I include retail investors in non-crypto markets - believe that prices going up proves the case for the existence of cryptocurrencies ("It went up so I was right about crypto being the future!") 3. The internet is highly efficient at creating thought bubbles (through social media algorithms, targeted ads etc), and the crypto crowd is intertwined with various conspiratorial communities. They foster a wide distrust of "the system" (without the necessary education on how the system works or why trade-offs are necessary in any complex system) and believe anything that makes them believe they're doing an act of resistance against an unfair set of circumstances.

[@joyjayant]

Yes and the head of state are idiots, CEO of hedge funds are nonsense people. Fidelity, Black rock don't understand what they are doing.

[@highvoltagee]

1. There was no industry for 10 years. It was a project on an internet forum. 2. Trained in different economics school. The mainstream universities and journalists believe in the neo-Keynesian framework and the new neoclassical synthesis. Every early bitcoiner, and many Bitcoiners today believe in the Austrian school of Economics. These two schools are at odds. P.S. I agree on everything with you on "crypto". Crypto != Bitcoin.

[@sharpenedge]

​@@highvoltagee this.

[@sharpenedge]

read The Bitcoin Standard

[@Venom-x7t]

Blackrock doesn't know economics? Fidelity doesn't know?

[@Jeff-wz3xo]

How this channel isn't 10x bigger I have no idea.

[@MarkMeldrum]

Great comment. A+

[@exVerdar]

Because in 10 years he will still be wrong btc will be up

[@_-Wade-_]

Because Bitcoin is the best appreciating asset over a decade.

[@DinnerIsDelayed]

Because this channel involves thinking. And most don't want to think, they just ironically want money.

[@qq12121]

because 99% peoples are dumbass

[@aaronstein8585]

"don't save her, she don't wanna be saved"

[@JL_____]

1:01 "Jumped roght over understanding and landed on certainty" LMAO

[@AnthonyJones-gf6yv]

The irony. This guy is a mess.

[@tyrouse5651]

@@AnthonyJones-gf6yvplease elaborate

[@dojimaryotaro6563]

@@tyrouse5651 Elaboration: my feeefeees were hurt by the mean Canadian man in a baseball cap.

[@dadafros]

I live in Brazil, it's not difficult to beat the official inflation rate (IPCA). But it's impossible to beat the real inflation on prices of groceries, homes, cars etc etc. Things are like this all over the world, including US.

[@YTwoKay]

This exactly-- promoters of Bitcoin want to invent a new infinitely appreciating asset that is artificially controlled, but controlled by them instead of through a democratic process. To do this, you MUST limit supply-- or at least maintain the appearance of limitation while also maintaining the appearance of the necessity of the asset. This is why laymen think gold has actual value when compared to limited assets like land.

[@mirkobonotto9349]

The problem is that inflation is not a measure of price but how much price accelerates. Reducing inflation reduces how much the prices rise, but not the current prices, the model is failing as of now because even though interest rates were raised in order to shut down inflation people's salaries didn't go up when inflation went up. So your formula in the long run just makes it so wealth concentrates in the hands of people that can invest and hedge against inflation, destroying the middle class in the process.

[@ManforSomeMarkets]

I’m not a big fan of the “number go up” crowd, but I don’t mind having alternative payment systems available. Especially so in low trust societies or countries with command economies.

[@chrisp8006]

They don’t work though lol. What store is gonna accept payments when it could be worth 10% less the very next day? Why spend your crypto when you think the value will go up? Inherently flawed.

[@Anarchistarchitect]

@@chrisp8006 the naira and Turkish lira can be worth 50% less the next couple months and people accept them too. You realise some people already get paid in bitcoin. They just revalue their service for each trade they make

[@ManforSomeMarkets]

@ Agreed. I guess I like the idea rather than what it has become.

[@chrisp8006]

@@ManforSomeMarkets Having a true stable means of exchange that crosses borders is nearly impossible to have, even in a fictional world. You essentially need people from all walks of life to agree on the value of some medium, which is simply impossible. USD is the closest thing there has ever been, and has literally allowed globalization to happen so quickly

[@Anarchistarchitect]

@@chrisp8006 people collect the naira and Turkish lira even tho they also can lose value by 70% in a year

[@tafadzwapikira3289]

No matter how bad bitcoin some people think it is, personally it has improved my life, I sent money whenever I want, no one asks me anything, I carry it in my head and no one put a limit to how much I can carry, for the first time I feel in control of my wealth. Personally, I feel more comfortable storing my money in Bitcoin. People should be free to save money in any currency/money they want. I choose Bitcoin.

[@Anarchistarchitect]

@@tafadzwapikira3289 very level headed response. Why do I care if people choose to save in apples or the yen or the dollars 🤷

[@abanks7663]

I send usd whenever I want and no one asks me anything. No one puts a limit on how much I can carry.

[@Anarchistarchitect]

@@abanks7663 clearly you don't carry a lot

[@Limitedonathios]

@@abanks7663I think these people are from countries where their currency is significantly weaker and more policed than the usd in America.

[@highvoltagee]

@@abanks7663 Some people send money to different continents with crazy high fees and shitty process. Bitcoin fixes that.

[@Wads2S]

Hey Mark, appreciate your perspective as always. I noticed in your first crypto fallacies video you mention that fixed money supplies don’t work because the velocity of money is “fairly constant” so if you can’t increase M then your economy stagnates. However in this video you argue (and show) that V can change quite significantly and that’s why an increase in M doesn’t necessarily mean an increase in P. It seems intellectually dishonest to argue that V is constant for fixed supply monies and argue that V is not constant for the dollar so you can say that increasing M doesn’t equal an increase in P. Would appreciate you reconciling this. Thanks!

[@LAKASOMEBODEE]

I honestly don’t care if bitcoin is good or bad for society. I care, as an individual, if the market will adopt it. Humans have harmed themselves in all sorts of ways - see communism. If the free market wants to adopt bitcoin, then I better front run it.

[@jokubasp6824]

Why does the CFA curriculum still teach the fallacies that were debunked in this video? The LVL 1 economics section teaches money multiplier and fractional reserve theories (both dismissed by central banks themselves), which imply a simple causal relationship between the amount of reserves and broad money supply within the economy (1/min. reserve requirement). It has nothing to say about commercial banks creating money, central banks creating reserves, the interactions between them etc. etc.

[@diamondwave100]

Because it's still relevant in central bank conversations? You think that because you don't see them mention the formula means that the concept is suddenly extinct and irrelevant? By that logic, should the CFA stop teaching DDM, because actual investment firms hardly use it? CFA L1 teaches you the basics with direct simple relationships. That's kinda the point. Almost all of economics academia functions this way, that's why undergrad economics courses rely heavily on the term "ceterus paribus". The more nuance comes in in the more advanced economics courses, which is why you also learn about multiple linear regression.

[@jokubasp6824]

​@@diamondwave100 a) It's not relevant in "central bank conversations," nor should it be, as argued by central banks themselves. b) there's a difference between hardly used and misleading.

[@diamondwave100]

​@@jokubasp6824 I really don't understand the point you're making, but I think you're misunderstanding. Fractional reserve banking is literally the system that central banks run on. That's why economics textbooks and the CFAI curriculum still teach it. Sure, the formula is barebones and doesn't give you the whole picture without adjustments (like basically all formulas in economics, which is why economists don't use formulas, they use regressions), but fractional reserve banking is alive and relevant. How else do you think the "money printing" process works, and how and why do you think interest rate cuts affect spending and investment decisions?

[@diamondwave100]

I think your confusion is coming from the Federal Reserve not reinstating the minimum reserve requirement on commercial banks. While that is true, that is only one part of the fractional reserve system. The money multiplier effect, which is the primary key component of the fractional reserve system, still exists and is still the thing that economists and central banks make decisions based on.

[@jokubasp6824]

​@@diamondwave100 "Another common misconception is that the central bank determines the quantity of loans and deposits in the economy by controlling the quantity of central bank money - the so-called ‘money multiplier’ approach" - McLeay et al., 2013, Bank of England. So the fractional reserve system, the way you describe it (with banks keeping a 'fraction' of their funds as reserves, and lending the rest to non-banks, thereby 'multiplying' reserves into M2) *simply does not exist.*

[@abdecerrone6609]

I love how some people seems to know more on how the economy is being constructed than a PhD , hence he is a successful entrepreneur. People are not ready to quit their bitcoin cult , I am just happy that Mark meldrum still teach us some truth. PS : I am one of those who quit the cavern of Plato to see the light

[@IgBos6]

Bitcoin has been up since 2015. I am not saying that this will not fall or possibly crash, but why try to predict the unknown. My opinion is, if anyone put $$10,000 or more in 2015 and bought bitcoins and took the profit today, great job you made lots of money. But as of today, there is no reason to keep buying bitcoin, there are better assets to buy on market than bitcoin.

[@Giatros89]

34:50 can't use something as a currency that is in price discovery. When the mcap is huge the volatility will be much lower. BTC is like gold and less like currency

[@gertrudes666]

If I lived in a country like venezuela or zimbabwe I'd use bitcoin as a hedge against my own government/country.

[@zerquix18]

why not USDC/USDT instead?

[@Anarchistarchitect]

Bitcoin outperforms them too​@@zerquix18

[@chrisp8006]

And even that isn’t smart haha.

[@Anarchistarchitect]

@@zerquix18 sure, hold usdt over btc 🤣🤣🤣, have you seen the chart of usdt to btc?

[@gertrudes666]

@@chrisp8006 it would have been the smartest single trade to have in place for the last 10 years. Sounds pretty smart to me.

[@malceum]

I think you are arguing against a fringe viewpoint among crpyto enthusiasts. Most believe the dollar and Bitcoin complement each other. Bitcoin is seen as a store of wealth that has many advantages over traditional assets gold, stocks, and bonds. Bitcoin's competitors are those assets, not the dollar.

[@MarkMeldrum]

I agree with you. Buy your point of view is not widely agreed upon. In what I have come across in blogs, videos, books, etc, BTC as a currency is widely embraced. BTC is best conceived as something else, but not a currency. Good comment: A

[@the.texas.gringo]

@@MarkMeldrumthe dream is a currency. Unless you want to tell every country burdened under dollar denominated IMF debt that they should be happy to continue using the dollar because it benefits them.

[@ibra9469fbewbt]

@@MarkMeldrum blogs, videos, books, etc are most likely to be written by "btc maxis". considering how many people invest in it right now, considering those maxis to be representatives would not be wise. take the case of elon and his doge as a simple example. elon promotes doge because of its "tail-end inflation = no fixed max supply". there's much to be explored in this space than what outdated btc maxis think. that said, I enjoy your content and agree with you on a lot of points. thanks for sharing your views.

[@Sawa137]

​​@@MarkMeldrumI think the "btc as a store of value and maybe money one day" viewpoint is dominant nowadays, the money maxis are a loud minority and they're losing ground. Most people in crypto also believe in a multi chain world with all kinds of cryptocurrencies + fiat not going away for better or worse. Your view of crypto is quite outdated frankly.

[@wynn324]

the point of views described in this video are extremely mainstream among the proponents of bitcoin, they are not fringe in the slightest

[@Anarchistarchitect]

This is why it's good to hold that Nigerian naira blindly, it is guaranteed to make me poor which is good. I pay in the currency the seller wants but I hold the currency that my government/bank can't make lose its value beautifully. My bank stole $1k from me 2 years ago, that was my life savings, now I have 3k in bitcoin but I'll change because you said so.

[@chrisp8006]

Wow the cognitive dissonance is so real with you bud haha

[@Anarchistarchitect]

@@chrisp8006 I like how you debunked my arguments. It's good you like the fact that your savings lose value and you have to either expect bread to cost more or you invest in a strangers company to hope the company does well

[@joyjayant]

​@@chrisp8006Cognitive dissonance is the discomfort a person feels when their behavior does not align with their values or beliefs. Did you use the word because it sounds smart?

[@the.texas.gringo]

@@chrisp8006disagree

[@sharpenedge]

​@@chrisp8006 It's sarcasm

[@ReasonableAssurance]

Aaaaand there goes microstrategy going to beg to dilute their shareholders again. This time to the tune of up to 10B shares. This is not a joke!

[@the.texas.gringo]

So come end year, you’re telling me it’s better for everyone that the burden of salary raise negotiation falls on the employee and not the employer? I haven’t had a raise in 6 years though I am highly critical and performant to my company. My only ability to push the conversation is to waste my man hours to get a competitor offer to bring back to my employer and fight like hell. You think it’s too much a burden for employers to bear more of this responsibility due to deflation? This seems to align with your general core principles that government cares about me, centralized banks do what’s best for me, and managing my own finances through a decentralized system is childish.

[@Giatros89]

37:35 you get it from the customers. This is assuming customers actually want it from you more than the money in their pocket. You have to be selling something really worth it as their money does go up in value. When money goes down in value overtime you are incentivizing spending unnecessarily. The interest rate would be high so you can't use interest to lend. You would 100% need an equity stake and would be more conservative investing due to having way more skin in the game. This is a net plus. You don't get a raise but the decrease in cost to what you buy is faster than the drop in increase in salary.

[@ddred279]

One of my issues with crypto is gas wars. Transactions have limited bandwidth so during periods of high demand, it becomes necessary to outbid other transactions so you can jump to the head of the queue. What this means in reality is that if using crypto was normal, if you went to the store to buy a bicycle, but a store in another country announced a sale on cars. The increased transaction activity from the cars inflates the prices of both the cars and the bicycle leaving you to either wait until demand dies down or pay a premium for no real reason.

[@tobiasbogner4147]

The quantity theory of money is one of if not the best understood relationship in economics. Plot the change of money supply over 3-5 years against nominal gdp growth and you’ll see an almost perfect relationship. In every country in the world since the dawn of history. Which other economic theory is that well proven?

[@Giatros89]

31:10 looks like a risk allocation if that's what people with money initially treat it as. Once it's seen as pristine capital it will start to look a lot different. We are in a price discovery phase so it may appear risky now but over longer periods of time this will change. Overall btc doesn't correlate with spy but in 2 years you can make anything look like a correlation.

[@chrisp8006]

It all comes back to “if I think the price is going to go up, why spend it?” Which completely defeats the purpose as a new means of exchange. Inherently flawed and volatile.

[@joyjayant]

Need and wants is how money moves.

[@chrisp8006]

@ Is that supposed to be an argument? For what exactly? My statement is factual

[@Liverpoolaussie21]

Can make the same argument about housing in Canada and my country Australia.. always the perception house prices just go up

[@Ironrodpower]

U need to study Greshams law more

[@chrisp8006]

@@Liverpoolaussie21 you live in your house. do you live in a bitcoin?

[@biggamehunter33]

Hi Mark! Your fan, subscriber and CFA L3 candidate here. 36:40 "You're getting wage deflation, however it is still maintaining the same purchasing power" - I would argue that this is a feature, not a bug of BTC. In contrast, the dollar introduces wage inflation, accompanied by a continuous decline in purchasing power. (nominal increase offset by higher prices/lower purchasing power = money illusion). Additionally, why would the company have to lay-off staff to marginally increase the salary of an employee in BTC? If it is able to produce incrementally more cars every year (Y1 3 cars -> Y2 3.1 cars -> Y3 3.2 cars) with workforce being constant, then it would be able to proportionally raise wages to some degree too. The effect of wage increase would therefore be driven by the increase in productivity. As to my understanding, this dynamic could potentially shift the perception of companies as well as people in general to be more long-term oriented toward quality rather than current short-term mindset driven by the continuous deterioration in purchasing power. Thanks for the answer in advance!

[@merguezmouillee2614]

For the first point about criminals, i agree on the most part, BUT with most crypto, transactions happen in clear and everyone can trace it and police can do their work on the individuals if necessary, whereas with fiat, in particular cash, no one can trace it. I assume there is a lot more of criminal activities involving cash than crypto

[@joaothives5893]

Mark, what's your opinion about the recent CFA's insertion of crypto in the Level 1 Curriculum? Their take is that it is an alternative asset with low correlation with traditional assets therefore it can be useful in a portfolio... I've got to admit it was a surprise when I started studying, it did not come up on the actual test, but that's n=1, can't speak for everyone. Love the videos, being able to watch you analyze is simply inspirational, kind regards from Brasil, keep up the good work! 🇧🇷

[@authenticallysuperficial9874]

2:33 Lack of correlation does NOT imply lack of causation! Are you really going to play dumb and pretend you don't know this? You're an intelligent person, you can't possibly believe correlation = causation.

[@1234doawee]

Do you have the transcript Mark? I like to use AI to better understand parts without asking a million question

[@joyjayant]

His point is, money laundering must be secured for politicians, powerful individuals and cartels? Because they do that all the time, all big banks regularly pay fines for supporting money laundering..do your own research.

[@MarkMeldrum]

Exactly. They pay fines, they get punished for doing it. Just like murder. There are laws against murder, and those who break the law get punished. I want laws against these things, I don’t want to make it easy for them. Will a law eliminate the action - no. But to create a system so that it becomes easier for them to do it is just stupidity.

[@joyjayant]

@MarkMeldrum we don't need law against murder, human don't feel like killing and those who does law can't do anything. The bank pay fine as a percentage of total money laundered!!!! If not for profit they won't do it. People who have incentives to launder money will do so and they are doing it irrespective of laws and tools, there are studies that show Bitcoin is not a good tool for money laundering because it provides the trail, public trail!!!

[@the.texas.gringo]

I want the writer of those laws abstracted from regime politicians.

[@copycatt2579]

@@MarkMeldrumthe fines they pay are nothing compared to the profits they make. This is why they continually do it. Because you have nothing to hide is no reason to allow people in your business. You say this until yourself or a loved one gets burned. It also allows for corruption and targeting of people.

[@connorp5142]

@@copycatt2579doesn’t bitcoin have less privacy than fiat banking? There’s a gambler on KZbin and I can go to his bitcoin wallet and see all of his transactions and where they’re going. I can’t do the same with fiat.

[@philb7942]

Fascinating analysis, thanks Mark. Would like to see you cover in more detail 1. Bitcoin (or perhaps lite coin) as a possible low cost payment system (not as a currency) , 2. Where you Bitcoin dollar actually goes in this negative sum game (miners, fees etc) 3. Why no government should buy Bitcoin as a 'reserve' currency - although this seems obvious to me.

[@Mray760]

Hi Mark, so what are your thoughts on purchasing bitcoin as a risk asset?

[@Music_Finance]

Seems like there are some assumptions here that are unstated. So if i understand your claim correctly you are stating that trusted third party is preferable because third party allows for oversight and therefore makes it harder for terrorist, money laundering, crime ect. Is the assumption here that this will result in less net crime or is it that crime or other non-favorable activities that are committed by govt approved organizations is preferred over individuals committing crimes, fraud ect... Seems like if the argument is net, the biggest funders of terrorism have been governments in the past several decades, also if we are going to talk about money laundering seems like again that is govt and for crime i suppose we would have to first say what is a crime, is theft a crime and therefore asset forfeiture or seizure is a crime or is a crime when a non-governmental body does something the written laws says they should not. If the argument is that these activities committed by governments is preferable to these activities committed by individuals why? You also made some comments about a few good individuals being de-banked as a cost of doing business for making it harder for undesirables, but what if it is targeted de-banking of ppl with different political beliefs like the truckers in Canada, is it preferable that these institutions can just de-bank large groups of ppl if they fall out of political favor and then if so are we not creating an incentive for the different groups to now use de-banking as a weapon to punish the opposing political sides and maybe the answer is yes, then how are we measuring these comparisons? The other claim is fixed money supply would be a negative because it would result in deflation and thus lead to less production, but the exchange rate does not change how many things there are in the world, there is still the same amount of atoms, same amount of cognitive beings who can manipulate those atoms to their ends. So what exactly is it that makes it preferable to increase supply vs prices decreasing and interchange being divided into smaller subdivisions of the base unit ie a bitcoin in this example. If the answer is well if we had btc a few individuals could gather up all the btc why is it that the disparity between top and bottom earners has gotten wider and wider as inflation and debasement of the currency has gone up, should we not expect the opposite given the increasing money supply would prevent the super competitive few from gaining an increasing price disparity in their earning power. I also do not think anyone is advocating for forcing everyone to use btc, there is multiple crypto currencies and they have multiple functions or at-least are attempting to do different things and the thinking more or less seems to be that given a market of competing currencies economic activity would tend to gravitate towards the currency that best suited the characteristics of said activity. Really the claim with why crypto over fiat, is there is a disparity with creating currency of who gets the new money first, because if you can spend the money into the system before prices have adjusted to the supply increase you have gotten to spend without producing, even if the difference is creating reserves and then banks loaning them out, if you know what demand is and will be do you not have a privilege of asymmetrical knowledge of the value of money such that you would functionally get the advantage of spending or in this case taking out maximally leveraged loans of new money while it is most advantageous. The other part is the average person does not know better, does not have investments and just holds cash, and the debasement is making them less wealthy, no matter what you are going to have the more competitive and more informed getting the lion's share of the spoils but it is not apparent to me why making this phenomenon more so through debasement is better than not. I enjoy your videos quite a bit, always informative. Thanks for all that you do.

[@Sawa137]

Good comment

[@crackered]

We aren’t investing in Bitcoin Mark. We are buying the new, limited, rules based, digital, peoples global money with the old, flawed, unlimited, weaponised, analogue, nation based, government money. The exceptional returns we are enjoying are just the natural outcome of the adoption process. We still sooo early. I think only 15% are taking advantage of the clear, simple opportunity staring them in the face while 85% are sadly missing out. Hmmm, where have I heard those percentages before? 🤔

[@bdunns8512]

I’ve been really into crypto since 2015, cold storage wallets and everything. As a high schooler who grew up scared from the financial crisis of course I loved satoshis thesis. With that said the crypto landscape has completely evolved into a gross cult of greed and fraud (yes it’s always been there but way worse now). Bitcoin has become totally centralized with the haves and have nots, including big asset managers and now governments. I will continue to hold bitcoin as a speculative asset because I believe in blockchain technology. But is bitcoin the future? I don’t think so. Anyone who has actually bought something with bitcoin would know that it is a shitty and costly process. I agree with a lot of Marks arguments especially in part one. Inflation and central banking is absolutely key to the prosperity we have enjoyed in the last century. Yes there are numerous problems in its management however the trade off of fiat is so much better than the dog shit gold standard, Breton woods and bitcoin network.

[@user-bx3lq2em3h]

1 BTC can be divided into satoshis...you missed the point and BTC is digital gold not currency, it is not competing against dollar as currency

[@Giatros89]

14:14 does an increase in reserves enable increases in lending which increases supply? Does bank lending get looser or tighter depending on the reserves available and the rate at which they are available?

[@pran10000]

Don't buy Bitcoin. It's strictly opt in - unlike Fiat.

[@pushandstart]

I could listen to you all day. I hold about 10% in crypto but completely agree with you.

[@robertmizialko8379]

Thoughts on use case scenarios? Like XRP with cross border payments, Chainlinks use of linking real world events to the chain like weather, interest rates, ect, vechains use of creating an immutable record of products journeys from production to delivery? No hate just actually wondering, you’re obviously intelligent and I’d assume your audience aswell to an extent.

[@robertmizialko8379]

Stable coins also have 0 volatilty, and there’s coins that are currently backed by gold or even T bills to negate volatility or even make gains.

[@xsliquidity]

The fact Nasdaq included this stuff in the index is trouble for John Q Public, smh

[@anthonyduval3191]

Love you Mark but bitcoin is not believed to be a currency or even the future of currency since 2020 at least! Definitly an esoteric take now. Its tulips (speculative store of value) sure. But you cant transfer tulips on the internet instantly!

[@chrisp8006]

@@anthonyduval3191 If it’s not positioned as a currency, then what is it exactly? A digital asset, you say? In what ways does it serve as a utility? Absolutely 0. 98% of BTC transactions is literally trading volume. LOLOLOL

[@Giatros89]

9:00 Trusted third party using a protocol that can't lie to you. They can't inflate this and do excess fractional reserve ie part 1 of this series.

[@Magnelibra]

I need clarification on the "M" being loaned into existence...M never decreases, it doesn't increase solely because banks expand loans, if you look at the make up of Bank Balance sheets loan growth is nascent at best, what does matter is the global central banks coordination as well as government deficit spending transferring money from the govt and paying funds out to the private sector, it is this deficit funding that masks real weakness in the economy. Also Bitcoin will continue to garner the global share of reserves because it the future is not fiat. I dont think the traditional fundamentals apply when it comes to demand for a given technology or money. In this case Mark is missing the point on global demand for a reserve asset whose backing is the very technology that allows for billions to be transferred without an intermediary at an extremely low cost.

[@Piedpiper1973]

Enjoyed your mathematical explanation of how the monetary system is supposed to work, however smart people often overlook the obvious. BTC is simply a mathematical solution/protocol to manage scarcity. To play the game you need fiat. This system doesn’t want a savior, it really working as intended, however an alternative is BTC/blockchain banking, the network is becoming more valuable due to its use, of course criminals will use it, just as they use the Fiat networks, yeah I agree the sale pitch/marketing for BTC is epic, but no one is twisting your arm to buy it. Just as no one is forcing me to use the dollar. I could convert it to euro, instead I cover t my dollar s to BTC pay my CAPITAL gains taxes when I decide to sell. Banks do this all day , it’s called fhe Forex market. There is a new currency in town , use it or not. The choice is your.

[@dealsled30]

Could velocity be dropping be due to M2 increasing and “diluting” the exchange frequency of dollars? An analogy to elaborate would be: the more volume there is in a body of water, the more difficult it is to make waves?

[@user-bx3lq2em3h]

as long as fed is printing, I want to gamble and be all exposed to risk, that is how younger greedy mind works

[@chasegiorgi4708]

But bitcoin is digital gold, not currency. Big difference. Scarcity, store of value, and medium of exchange. Advantages include low cost to move, low cost to store, decentralized, and a fixed supply. No one who understands the asset is trying to replace fiat with it.

[@unfettered1]

Correct me if i am wrong but any one can create n crypto with exact same features as bitcoin. So why put value to bitcoin?

[@samuelqiu8185]

@@unfettered1 because it is the first, and the creator is 'gone'

[@chasegiorgi4708]

@@unfettered1 yes and many have but do not have the same volume advantage that comes with being first

[@Mad-Chimmy]

Your thoughts, judgements, & analysis about BITCOIN are your problem. Bitcoin didn’t care when it was a penny & doesn’t care now at 100k+ Either hop on board or continue holding your devaluing Fiat Monopoly money. Venezuela and Argentina have some advice for you though about paper currencies.

[@mr.l3260]

🤣🤣 BTC won't care if it crashed as well.

[@chrisp8006]

@@Mad-Chimmy wow we got a kool aid lover right here folks

[@Mad-Chimmy]

@ All the Orange I can handle please. From 1 penny, to 100k and beyond.

[@chrisp8006]

@ Easier to be fooled than to be convinced you’ve been fooled.

[@Mad-Chimmy]

@ No you’ve got that backwards. “Fool me once shame on …. shame on you. But fool me - you can’t get fooled again.”

[@iceflyger8110]

Hi Mark, When TSLA was around 300$ after the election rally I entered into bear Put spread March 2025 - 260/280 as I didn’t see more upside given the company fundamentals. I wanted to have your view on how to restructure this position given the huge unrealized loss . (maybe buying put when the stocks hit 500$ as I find the emotional election rally a little bit overdone.) What would you do in that case ?

[@kl3664]

I’ve been watching a lot of your videos recently-I enjoy challenging my own beliefs and exploring the 'known unknowns.' One thing I think the generally ill informed crypto community often gets wrong is viewing cryptocurrency as a currency. Unfortunately, the term 'cryptocurrency' itself was poorly chosen; it would have been more accurate to call it a cryptoasset. From what I’ve gathered, the Trump administration is may be considering a Bitcoin-USD hybrid, something akin to a 'Bitcoin-Dollar'-similar in concept to the petrodollar. The goal seems to be creating a government backed crypto-based USD to control the on-ramps, and in doing so, establish a new balance sheet that helps US bonds remain the dominant global hegemony. Look forward to commenting on your upcoming videos.

[@qq12121]

unemployment rate is rising, initial jobless is rising. the crash is near

[@JohnDoe-gg6kc]

Sorry mark, your not able to see differences. Btc is not the same as crypto but your echo chamber of boomers here will get suckered with your fud.

[@MarkMeldrum]

Jesus Christ on a bicycle! You coiners just lack the ability to hear correctly. I said this is something that is quite often repeated in the coiner crowd, and it is just misinformation. If you feel there is a difference, maybe bring it up at the next coiner-fest. Maybe tell your own crowd your objections. I am an echo of the coiner misinformation.

[@LibertarianXu]

It's a straw man argument, since no one is advocating bitcoin to be the sole currency used by the whole society, not even crypto degens would say that. Hayek's denationalization of money is all about free competition; deflationary ones ought to have a niche in the economy.

[@dojimaryotaro6563]

Clearly, you have never heard of Bitcoin maximalists.

[@randoroo2540]

Having watched enough of your videos all I'll say is that I'm glad that you aren't buying bitcoin and likely neither are your followers. Keep on trying to convince them that the path to wealth isn't creating value in the real world and storing it in the optimal vessel, that you're better off trying to construct elaborate stock and options schemes to figure out how to extract wealth from everyone else that is relying on the currency in the real world. "Most people very interested in Bitcoin are not trained in economics...." not exactly true, though a lot of the people that are trained in economics don't end up accepting bitcoin because to do so would acknowledge and accept that the thing they've built their entire identity around was flawed in some way, which is a major ego blow.

[@daneomegan]

Lots of words but you're not saying much..... So you're glad Mark isn't buying Bitcoin?..... Ok😢

[@OldManNutcakez]

So the greater fool scheme builds wealth, how exactly?

[@chrisp8006]

@@randoroo2540 “I’m playing an easy game that gets easier when I get other people to play it” That’s literally what you just said if you read it with a clear head. Seriously, think about it. Step back from your anger. Think about those words.

[@mooooooooooooove]

@@randoroo2540 You're projecting. If you have any intellectual honesty left, you know deep down that you're the one who has built their identity around a flawed concept. Bitcoin and other cryptos are going up in price because there is always a bigger fool who will pay up, either because they think it has a future as a currency (which it does not), because they believe in the hype (which is the most honest way to enter the crypto market), or because they fell victim to fear mongering about "the system" and didn't bother becoming more educated on the topic. You do realize the price only goes up because of speculation, right? Start from there. Move forward with the argument. Realize you're investing in a volatile asset whose price is a popularity contest and where conflicts of interest are rampant. Wake up

[@Sarkahn1]

Mark please read the properties of Money and start there. We can argue economic theory and why inflationary currency is needed for economic growth… But please just read the list of what makes a good hard money. I really enjoyed Broken Money by Lynn Alden. Love the breakdown of how a hard money like gold lost to the dollar due to technology/ speed and convenience. Vs gold reserve. BTC fixes the speed part, with much less friction, and is an even better store of value than gold at its mining rate inflation. It seems pretty obvious to me. It already had name power. Sure it has mad volatility due to human emotion and cycle swings, but long term on a log log chart looks to be an adoption line that is predictable and regressive with % or return yoy.

[@aliblackmountain3788]

Thanks for providing this great analysis. I always felt like bitcoin or any deflationary „currency“ will not solve the fiat money „problem“ but never could figure out what it was. Its the static supply. Although i make good money on bear and bullruns on crypto i dont think its the solution. Its more like a collectable where ideologic fanatic cultmembers pay high prices in good times to get their hands on it. I buy when nobody talks about crypto and sell when youtube and x is full of crypto 😂

[@_-Wade-_]

107k, ATH, higher 🎉

[@jonathankrueger4911]

I thought more about your cautionary tale before you shared so many of your political views. This one felt a lot more like you just have an axe to grind.

[@the.texas.gringo]

Please elaborate? He does seem to carry an arrogance to his presentation. After hundreds of hours of study, his certainty is off putting. I know very highly respected academics giving fantastic points pro Bitcoin. Pride comes before a fall.

[@abanks7663]

Is being against fraudsters a political view now? 🤔

[@nicoruppert4207]

​@@abanks7663always has been

[@AnthonyJones-gf6yv]

@@abanks7663yes because wealth redistribution is seen as fraud in the eyes of many and wealth redistribution is definitely a political view shared by many people that would like to see that wealth redistributed to themselves.

[@jake9674]

- Would love to hear you debate a Chicago or Austrian school economist. - You haven't really made clear, why is an employer lowering pay every year a bad thing? Why is that worse than the opposite? What's the problem? Please explain it clearly. - That said, appreciate these videos! It's refreshing to hear a perspective from the other side, which is rare on youtube. Final note - Economics in One Lesson by Henry Hazlitt was a life changing book for me. Everyone interested in these topics should read it.

[@IgBos6]

Reducing pay communicates that your financial situation is unstable or that struggling employees will be penalized rather than supported. Either way, pay cuts are likely to cost you your highest achieving employees. Raising employee pay can be beneficial for both the employer and the employee: Employee morale: Higher wages can improve employee morale and job satisfaction, which can lead to increased company profits. Employee retention: Raises can help retain employees, especially in industries with labor shortages. Employee motivation: Raises can encourage employees to work towards company goals. Cost of living: Raises can help employees keep up with inflation and the rising cost of living. Fair compensation: Offering fair compensation can help avoid poaching from competitors.

[@jake9674]

@@IgBos6 Wouldn't that only be true in an inflationary economy? If deflation was normal, everyone would be used to it.

[@YTwoKay]

@@jake9674 Did you watch the video? Deflation is normal and happens regularly when bubbles collapse and speculative assets crash, then the FED must react. This happens every time there is a market crash like he details @27:51

[@nameless88812]

Bitcoin might not be a good form of currency but, it sure sure does make it a good store-of-value isn't it? I would like to hear how it would not fare as well as gold as a store of value.

[@CosmicVoyageByte]

If M plus V then P 🤓 blah blah blah. Stop playing yourself. If government says print, BTC number will go up and USD savers will be the bag holders. It’s that simple.

[@DaveBee120]

There is a distorted idea all these crypto pumpers all promote, the idea that we all need to buy this stuff now, or they say, "have fun being poor". They don't talk about this thing rising at a constant rate, or a rate above inflation. The talk is always, this thing is parabolic, "to the moon". Now most assets increase in value, most often measured against inflation, they have a inflation adjusted return that we can observe and understand the reasons for it's rise or fall. Now if crypto is an asset with similar characteristics to other assets, then my child should one day be able to buy this thing that increased at a rate above inflation, yet crypto pumpers say my child will never afford it, it will be too expensive in 20 years. That I need to buy it now, now, now, yet I have never heard of such an asset before that I needed to buy with such urgency, the talk the crypto pumpers use is that of urgency and urgency is the same manipulative message used by scammers and pyramid schemers. "Buy now, this is your last chance", go to a time share sale and get the same pitch.

[@NYKIKE]

I like the rage in your soul. It is what makes up being genuine. Phenomenal video.

[@rachidhamrad8391]

But itnot fair as well to give the control of money circulation to an onlh power or two, it's similar damage for the other 90% of world population

[@hubertbuggert6883]

Anyone that wants a lesson on the fallacy of "store of value" should watch the Twilight Zone episode called "The Rip Van winkle Caper". You may have new perspective on the time-value of money or any so-called store of value. If nothing else its a fun distraction

[@mosesesule1082]

I am an average Ugandan, a very low income earner with no hope of ever getting my hands on precious metals like Gold or Silver. I bought Bitcoin worth 50 dollars in October. At time of writing my little Bitcoin investment is worth 90 dollars giving me a net profit of 40 dollars. What's wrong with this? Although wildly volatile Bitcoin has grown from zero dollars in the year 2009 to 100,000 dollars at time of writing. Is this not a hedge against inflation? The Economics i learned in school has no impact in my life at all. The Economics I'm learning through Bitcoin and Crypto is impacting my life positively and practically in profits. Bitcoin is digital Gold, a hedge against inflation and an asset that the poorest person in any part of the world can own. Mark. You do not need economics to understand this.

[@shibity]

Real currency needs to be slightly inflationary.

[@user-bx3lq2em3h]

most people understand crypto == gambling. i like the content but keeping videos short will help you get more visitors, specially subscribers

[@BitcoinRants]

Mark you sound like a smart guy. I watch your videos. You’re wrong about bitcoin. You’re wrong about mstr too. If you look at it from a miners perspective it’s amazing. You can buy a miner for $10k or buy $10k of bitcoin. Only mstr is is a miner with no electricity expense or depreciation of equipment!

[@rafaelrosa6579]

you're smart but your opinion about money laundering and criminal activity in crypto is incorrect. Blockchain is a public ledger. Public. It's easier to track you. As a result, people actually don't want to commit what you mention and use crypto.

[@billybeartku]

You are so stuck on the old system you failed to see the bigger problem.

[@sam34999]

This video is such a waste of time. The guy is so misinformed and his reasoning is based on emotions alone. Money laundering??? Easiest way to shoot on your foot is to money launder with crypto.

[@Dennis_510]

Those that don't believe in the gospel of bitcoin are told they "don't understand it" but really what is there to understand?

[@the.texas.gringo]

It’s an alternative monetary system to the dollar. Decentralized with better properties of money.

[@Dennis_510]

@@the.texas.gringo No one is using it as a monetary system, only as a speculative asset.

[@LDacic]

Amazing!

[@daneomegan]

I think the reality of a decentralized monetary system is lost on most crypto bros...... I picture the movie waterworld where dirt is the 'store of value' due to lack of supply. The crypto bros are literally wishing for this 🤡

[@Sawa137]

This guy redefines what smug means.

[@hud_huf]

BAD money has time value. Hard money doesn’t. Geez you are so stuck in your Keynesian current-system boxes you can’t see the bigger picture.

[@highvoltagee]

Keynesians won't ever understand bitcoin. There is no hope.

[@chrisp8006]

@@hud_huf “Hard Money” still has time value. You neglect the opportunity cost of investing elsewhere and earning some return. “Bad Money” and fast circulation reflect people avoiding loss, hoarding “Hard Money” reflects expectations of gains. Meaning both require a tradeoff about when to use it - time value at its core. So are you saving it or spending it? Who is spending it? If it can’t be spent, what is its value? Kinda looks a big old money slide that just needs a little water until she flows to the bottom

[@sergioperez1543]

Time value still exists in a zero inflation environment. Open up the schools!

[@daneomegan]

Hud_huf: "how can I show people Im smart? I know, I'll post something on the PhD's channel and explain how he's not smart"

[@Zero-Fiat]

​@@daneomeganWas the PhD smart enough to buy Bitcoin when it was $30k?

[@ajobha]

Please try and understand, bitcoin is not a currency. It is an asset. It is a digital asset. It has all qualities of 'store of value'.

[@ARKc95]

I'm already dealing with my friends and their 'Bitcoin bro, crypto bro' attitudes, and now I have to see these kids' dumb comments under my mentor's videos :D

[@Alex-mg1mh]

Yeah this guy doesn’t get it

[@twozey1]

Listen to him. He is the smartest person in the world

[@mr.l3260]

Not the smartest, but one of those people who chose to speak up against the madness.

[@the.texas.gringo]

@@mr.l3260the dollar isn’t madness? Backed by the full faith of the US government 🥴

[@mr.l3260]

@@the.texas.gringo No, it's backed by all the countries who accept dollar as exchange for local currency and U.S. Military.

[@CosmicVoyageByte]

$100k salary received today gives me $95k spending power 1 year from now. $100k salary negotiated today but received 1 year from now also gives me $95k spending power next year/when I receive it. Over these two salary years spending power decreases by $10K. How’s that a good system? 1 BTC worth 100k today gives me 100k spending power next year because it increases in price to $110k. Even if BTC payment is price adjusted. Say you receive .91 BTC the second year. That’s still $100K spending power because of the price increase of the BTC. To me this seems like the more logical approach.

[@itemere]

The question here is why do we just accept the assumption that the price of bitcoin should increase. There is no reason limited supply alone should make something valuable. This channel is about asking those kinds of questions.

[@anonymous_user-s3s]

Moarrrrr

[@atluslibre9851]

Lol muh money laundering. Banks will stop money laundering and funding terrorists lmaooo what planet are you on?

[@astrogumbo]

Mr Mark I suggested to KZbin that this video is "life changing". I'm curious about this channel's growth now.

[@lovoh]

Stay poor

[@andrewpetrochuk9583]

This video is soooo good.

[@oldhickory42]

I want to be poor! Haha

[@user-bx3lq2em3h]

you sound like an old dad with long boring confusing speech...content seems good, but video should be capped to 10 minutes since people don't have hours to understand 2 cents

[@AlvinaLemus]

INFTY3 Token is gonna pop anytime soon

[@SevdeOnat-m2h]

INFTY3 Token is about to go off the tracks.

[@ROBTChong]

INFTY3 Token is going burst anytime soon

[@EmaWest-i1f]

There are much better and safer alternative currencies, including INFTY3 Token, thus I'm no longer intrigued in those ones.

[@HilalMustafa-r1u]

INFTY3 Token is gonna explode anytime soon