The Economics of Bitcoin with Lyn Alden, Preston Pysh, Allen Farrington, Max Hillebrand

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“Bitcoin is how life should always have been, the cheatcode is fiat money printing…if you print money you get wealthier while other the others who use the money get poorer; but with Bitcoin nobody can print money anymore, and that means the cheatcode is finally gone, and what feels like a cheatcode right now is actually just human life.”
- Max Hillebrand
Lyn Alden is a macroeconomist, Preston Pysh is a founder of The Investor Podcast Network, Allen Farrington is the author of Bitcoin Is Venice & Max Hillebrand is an economist & entrepreneur. In this interview, they discuss Bitcoin vs fiat, inflation and why Bitcoin is the best money.
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TIMESTAMPS:
00:00:00 Fiat cheatcode; Bitcoin’s money use case
00:09:57 GDP, distortion, capital, & time preference
00:20:34 Hurdle rate, inflation, & investment
00:26:03 Incentives, scarcity, & malinvestment
00:33:05 Debt & saving; Bitcoin & governments; further reading
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#Bitcoin #Finance #Economics

[@gregrevell6891]

Has anyone ever heard Lyn even remotely stumped when asked to explain any financial concept, simple or sophisticated? An awesome intellect

[@rebranch74]

Correct POW

[@geoms6263]

is Lyn she or he? tx

[@lastnamefirstname2390]

This is the best video explaining fiat money, inflation, incentives, and malinvestment I've ever seen. They really honed in on the consequences of inflation and how it distorts peoples thinking, the economy, and production at large. I need a 5 hour version of this.

[@Bayer-fm4fz]

The 5 books recommended by Max: 1. Theory and History - Ludwig von Mises 2. Economic Science and the Austrian Method - Hans-Hermann Hoppe 3. Man Economy and State - Murray Rothbard 4. The Ethics of Money Production - Jorg Guido Hulsmann 5. Cryptoeconomics - Eric Voskull

[@KYFHOme]

Thanks! I was just going back to replay that part!

[@Roger12345ish]

Thanks for this. Is there an optimal order in which to read these books, to maybe focus on grasping the fundamentals first and foremost?

[@shawkinguk]

Wow Max kills this That was the best breakdown of inflation I’ve ever heard And I’ve been here for a while

[@chriswilliams2918]

This should be 8 hours long

[@cloudiermonk]

Also Lynn's book is amazing

[@mazza3137]

Thanks Peter for bringing on exceptionally bright minds. Can't wait for What bitcoin did with Max Hillebrand . Love your channel❤👍

[@MarkLavengood]

Yall this is great - thanks for the incredible and educational material homeys! ❤, the Bitcoin Bassist

[@evanstair1547]

Thank you so much.

[@REZZA2020]

Hi Pete, way to early to consider leaving Podcast gig. WBD is a essential for our generation.

[@omarca13]

What a lineup

[@samcan1000]

Excellent!!!

[@MMISize]

wish this was longer

[@murtazataha7177]

Lyn is GOAT

[@GRumpyonekinobi]

It's dangerous to ask Allen to go on a rant...the man is the tangle of thought personified.

[@KristaB253]

Lyn's book Broken Money is excellent. She's the queen.

[@creasunset]

What Neel Kashkari and the central banks are really saying is “We have special tools that let us break traditional rules, and we can use those tools to help people, we can help you, you can be part of the political favor system that we created for ourselves because we are smart and special people, we are your friends.” The problem with this and much of the growing political machine is that there is someone else who is trying to follow the rules and doesn’t have that advantage on the other side of each action. This other person has to lose in order for the rules to not apply to you. This other person may live in another neighborhood, or another country, you may not ever have to see them, but you are still hurting them. And, you are probably hurting the environment as well. Grey costs, externalities, plants and animals that cannot advocate for themselves are certainly less better off than man who is also losing to these political favor grifts. When cheating and rule breaking is dressed up as favors and offered by powerful people who may alternatively attack you, it becomes viral and more appetizing to the common man to side with the enemy.

[@infraaa_]

Man, as a monetary theory and economics nerd, this was fuckin great

[@seangrandillo]

🐐 🐐 🐐 🐐

[@RichardHowells1234]

Creator's thoughts about fiat?

[@xsilentg]

@7:32 🎶🧡

[@blairmatera6096]

If I could interview Satoshi, I would ask him why he chose to hard cap the Bitcoin supply instead of setting the half-life to infinity? The dynamic’s would work the same, but once you’ve reached 1 Bitcoin (100 million Satoshi’s) being mined per unit of time, the next halving would be 500,000 Satoshi’s, then 250,000, the 125,000 until eventually you get to less than 1 Satoshi mined per unit of time…where from there 1 Satoshi would be subdivided into 100 million “Datoshi’s”…and the process would continue ad infinitum. Anyone have any thoughts about this?

[@coonea1]

That's an interesting question. I think the reason would be that the amount mined really does not matter. And, when the supply creation gets small enough, it will not matter much either. The halvings are extreem enough in the beginning to boost price dramatically, kick-starting adoption. Ideally, as the halvings become less significant, the adoption curve will already be rounding out along with it, and at that point it is pure money. Or it could be simply a coding problem?

[@dominatorbooze8381]

Why not hard cap at 21 million?

[@rimmelscheiter6943]

It's a technical thing. Let me count to 8 in binary: 0000, 0001, 0010, 0011, 0100, 0101, 0110, 0111, 1000. Now if I want to divide by two, I simply move the digits to the right. 1000 = 8, 0100 = 4, 0010 = 2, 0001 = 1. This is how the halving is done. And if you move 0001 to the right, you get 0000. And since satoshis are the smallest integer unit, there is nothing to divide once you reach the last sat. Hope this was somewhat helpful.

[@dij3989]

@15:30 that was a nice breakdown. Makes me think of the demiurge Also, the fallen nature of man and the world Was Bitcoin in the Bible? 📖🤔

[@scottwhite8960]

Yes, there is this passage in Deuteronomy, verse 3:2. "Behold, in the vast expanse of trade, there shall arise a novel form of exchange, not wrought by artisans nor minted in the halls of kings, but existing in the unseen currents of commerce. This token of worth shall be as a hidden treasure, known to the wise who navigate the paths of trade. Let those who engage in its transactions be shrewd as foxes, for its value shall be as fleeting as the morning mist, and its destiny shall be guided by the unseen hand of fate. As it is inscribed, 'He who gathers wealth unjustly is like a partridge that broods over eggs it did not lay; in the end, he will lose his wealth, and someone else will get it.' Seek first the keys of understanding, for therein lies the path to prosperity, and all other riches shall be added unto thee."

[@cloudiermonk]

It is true 1-2%of new gold is available, but population grows faster and the need for more gold actually cause your # actually is not diluted but grows in value and maintains naturally for any inflation.

[@cloudiermonk]

Commodities like that are like if you could buy a car now and in 70 years bring it back to the dealership and get full value equal to any other car bran new over and over.

[@weegieboard8432]

Population growth across the western world is negative

[@michaelcalibri3620]

Allen is the "gold" here I wasn't expecting. I knew others going in but Allen's thoughts are interesting. Lyn is as always "I wish I had that mind" brilliant. At 28::00 onward one wonders whether this was part of Jeff Bezos rationale in setting up Amazon. He knew it was zero profit companies time to shine. In the markets decades before Amazon would've very likely failed but this fiat empowerment let many unprofitable things from Amazon to Tesla sail into "sustainability" or not.

[@ChrisvP]

Revenue is vanity, profit is sanity, and cash is king.

[@BitsPuls]

Max Keiser says that "Bitcoin is how life should always have been." He argues that Fiat money is a "cheat code" that allows individuals to print money and get wealthier while making others poorer. In contrast, Bitcoin has a fixed supply and cannot be printed, which means that nobody can get wealthier by printing money.

[@21Cabins]

📈 Laura

[@JonathanCr0ss]

24:30 Lyn is comparing apples and oranges here. She talks about the "terminal growth rate" of bitcoin and compares that to the *actual* growth rate of gold. The truth is that for everyone alive today (for their entire lifetime and that of their children), bitcoin is uncapped and the supply is growing. We all know it is a predictable growth curve and tending towards 0% in 2140, but it is incorrect to talk about it as 0% today when compairig to gold. Lyn usually doesn't engage in this kind of nonsense. Talk about "false targets"! Bitcoin is good enough -- it doesn't need people to paint a rosy picture of the facts.

[@lornemacdougall884]

"So they hopefully generate more Bitcoin for you in the future."😂 This isn't low time preference, this is gambling. If you save your Bitcoin above and beyond what you need, you are assuming it will be worth more and that someone will except it. This is low time preference thinking.

[@lindaabernathy4876]

Where are these so call "advanced democracies" of which Lyn Alden speaks?

[@DrLukeonCall]

I drive a 2007 truck 🛻 😂

[@motomike300]

I just got a 4 year degree in economics in 38 minutes! This video should be manditory vewing for anyone who spends money!

[@XxChuyoxX]

Max is a bit insufferable here. His approach doesn't help bitcoin adoption. Lyn is level headed one

[@TheRealDerekS]

This panel has me so bulled up the wife is gonna have to call the bank and make sure they don't let me go Bananas with our finances 😊 good luck honey, the only hope is if they have Dwayne the Rock Johnson working security down there, and even then, I pull enough weight that a flying heal kick charging both of my boots into the center of Dwaynes chest will clear the door and allow me to access the withdrawal desk, the HELOC however will be too time consuming, the Rock will be all over me before I can finalize the applications

[@savinobodei4656]

Damn bro…not your keys, not your coins I suppose 😂

[@libertypills5580]

Fiat IS indeed the cheat code!

[@Zaid_Mir]

What bitcoin did? Fuck All

[@cloudiermonk]

I wish Lynn said lets do a experiment and transfer 2k worth of value to each other. She pass a gold coin that gets handed over and over, then tries to send btc from one wallet to the next. Which transaction is easier and cheaper? Not mentioning taxes....

[@bahmak2003]

How about if each person is on another side of the world? Can your gold do that as compared to to bitcoin?😂😂😂

[@averyAnCap]

lol okay. Now repeat this experiment with 2k of value to transfer value to different people who live all over the world in different countries. Or repeat it with $2M or $2B worth of value.

[@jakeholst4555]

Well, spot for gold right now is 2335, so that transaction would cost her 335, since gold is not very divisible. Btc would be cheaper. Secondly, let’s redo that same experiment, but they are separated on either side of the conference center, or different sides of town, state, country or world?

[@murtazataha7177]

Sure but how do you verify the gold coin? And how cheap is that verification each time?

[@coonea1]

Don't forget divisibility. I love gold, but for peer to peer exchange, it failed. That's why we made notes backed by gold in the first place.

[@bujin5455]

17:42. This is the biggest pile of poo I've seen shoveled right in front of Lynn and Preston, probably ever. Wow.

[@dominatorbooze8381]

Glad I wasn't the only person who thought this. I was thinking to myself ?????????

[@bitchic]

I don't know about you, but Max Hillebrand has a FIAT soul and mindset still. Being Rich is not the way he thinks it is.

[@dominatorbooze8381]

Totally agree with this. Still has that fiat brain. Saving IS yr return on capital with bitcoin. Not for fiat.