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CJ Konstantinos

lines on the record: 49
first: 2025-02-12
most recent: 2025-02-12
sittings or episodes: 1
sources: podcast

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“Hey, thank you so much for having me. Like I said, I'm a longtime fan sitting on the other side of the screen. I too, my heart is beating. It's been a great conversation. And you guys can follow me on X at CJ Constantino's and at People's Reserve.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“That is a big blocker. Not only that, but locking up that equity and not having it to deploy and expand, those are big blockers to small and medium-sized businesses adopting Bitcoin treasuries. Well, the Bitcoin bond removes downside volatility. You can have exposure to Bitcoin with cash flow on your balance sheet. And when you bring people's reserve Bitcoin bond to people's reserve, we treat it as pristine collateral. You can borrow against that and access the equity on your balance sheet to expand your business without giving up the equity value. The applications of these tools are just like Bitcoin. They're so expansive that I think even myself, I haven't been able to comprehend it all yet.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“They actually have a higher credit rating than the federal government. You're going to get AAA pluses in Florida, the beautiful city of Naples. Naples has a very wealthy constituency, very, there's a lot of tourism here. There's a lot of stuff that goes on down here where the city is in a very healthy position. So you're talking about a triple A credit rating paired with Bitcoin. So you're backed by the government and this munib bond, this municipal Bitcoin bond is going to attract billions of dollars of demand, not only from other sovereigns and corporations, but also from the small and medium-sized businesses who have been looking and trying to figure out how do I get Bitcoin on my balance sheet. You cannot have a small and medium-sized business that needs to reinvest its revenues to expand its business, lock equity in Bitcoin, and then have to deal with the volatility. Imagine if your business is up and you're expanding your services, but your balance sheet is down because of the volatility of Bitcoin.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Michael Saller has led the way, and the financial engineering that he's done will go down in history. One of the smartest moves that's ever been made. I think what's interesting about these municipal Bitcoin bonds and even sovereign and corporate Bitcoin bonds is that they settle in USD. So you get Michael can borrow at zero. But with the Bitcoin bond, you're actually getting 4.5% cash flow. You know, Michael settles in equity. These settle in dollars. So you remove a little bit of potential liquidity issues if somebody wants to liquidate into dollars rather than equity. So I think there's room for both, right? I mean, look at how many banks there are in the world. There's not one banks to serve them all. Each in a true free market, there are many different problems that need to be solved. And each product solves that problem in a different way. And that's why Michael continues to expand his offering and find new products and services to offer to the marketplace because there's nuance within each one of these problems. And these products are going to solve those problems on a global scale. And no one company can handle it. So once people swallow the pill that Michael's cooked up for us.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Going to kick off a flywheel. I can make you a little bit more bullish if you can handle it. It starts a flywheel that we've never seen before, which is when the U.S. Treasury wants to increase demand on their debt notes, they'll raise interest rates because higher yields equals more demand. Well, when the Bitcoin bond produces a high yield, it's going to create more demand. Well, when you have more demand, you need to have more issuances. When you create more issuances, you're going to get the allocation that goes directly into Bitcoin and with absolute digital scarcity. The laws of economics tell us the price is going to be forced up, which then actually creates a higher yield on the note. So you get a positive feedback loop that feeds itself, that drives immense value into this product.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So it's not just going to be the federal government that has a strategic Bitcoin reserve. It's going to be the state government. Then it's going to be the city government and it's going to be the municipal government. So I think we start from the bottom up and we'll see municipal Bitcoin bond issuances first. And these politicians that are more local and can move faster will be able to attract demand and liquidity that they've never been able to attract before so that they can reinvest in infrastructure and benefit their constituents. You want to talk about build back the United States and make America great again? Well, Bitcoin bonds on a municipal and city level is how you attract massive amounts of investment to build out infrastructure so we can stop looking like a third world and start looking like the first world countries.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, they would bankrupt the banks and insurance companies who were forced out the yield curve from the zero interest rate policies that we have for all of those years, forced all of those companies out the yield curve to get the yield to finance their business model, especially banking and insurance. And if they issued, they pushed the rates up tremendously and the unmarked to market losses on banks and insurance companies would go through the roof. I mean, they're already through the roof, but it could create potentially an economic emergency, which of course would get the printers running again, which would then spark up inflation. But another thing that's happening, I think we got a little bit of an inside track here at People's Reserve is a lot of the focus is on the federal government strategic Bitcoin Reserve. But there's over 15 states that have already introduced strategic Bitcoin reserve for the state level. Now, going beyond that, what's really interesting is that the city's balance sheet is not the state's balance sheet. And the municipality's balance sheet is not the city's balance sheet.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“You're talking about a 5x, which would produce a 20% APY. And if you get a 10x and you maintain 60% CAGR, you get 40% APY. So a Bitcoin bond can produce between 20 and 40% APY when the 1982 non-substitution-based CPI is around 10%. So you're talking about positive real rates of 10 and 20%. So if you want to create demand on your treasuries, you have to create a positive real rate of return. There's no better way to do that than to fuse Bitcoin directly into the product.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Which is not. But even if it went to zero, the principal invested into the product is protected by the full faith and credit of the United States government and the power of their printer. They're going to print that money and they're going to give it to you. The problem is what the hell are you going to be able to buy? Well, every other debt product says you're going to be able to buy less goods and services because the real rate of return is negative. Bitcoin bonds create a positive rate of return by turning the best performing asset in the world. Bitcoin, into the source of yield on the debt note. So if Bitcoin just stays at the price it is when you issue the note, you get 4% APY. If Bitcoin price goes down 50%, you get 2% APY. But the five years already paying four and a half percentage points. So for 50 basis points, you are basically getting infinite upside because if Bitcoin does what people like you and I think it's going to do because of the monetization of the asset class and because of its evolution from digital gold to pristine collateral, it's going to blow the socks off of everybody. And if you get like a 30%”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So tell me more about this demand on Treasuries conversation versus the stablecoin thing. I get the stablecoin thing, but how much lack of demand is there? How much of a concern is the liquidity in the US Treasury marketplace? Because if there's little red flags and they're looking for solutions, that tells you that we have a really big problem in the United States Treasury market. And it's a lack of demand and it's a lack of liquidity. So how can you generate demand? Easy. You combine Bitcoin. You fuse Bitcoin into the Treasury product itself. And at People's Reserve, our Bitcoin bond product typically it's like an 80-20 split. So let's say you raise like $100 million. 80 million would go into a five-year US treasury note around four and a half percentage points and then 20 million would go directly into spot Bitcoin. And it's a principal protected note structured with that ratio. What happens is over the course of five years, the 80 million at four and a half percent matures at a value of 100 million. So the principle you invested into the product, even if Bitcoin goes to zero,”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Seven trillion dollars worth of treasuries, even with the current setup, we can't do that. I think it's an interesting concept, and I think it's really exciting because if Trump is willing to talk about these things and make moves this big, there's no doubt in my mind the money markets are going to be rewired and we are going to see a complete rocking and shifting in the foundations of finance. And I think the solution to this is our Bitcoin bond. It's so simple that when you hear it, you're like, this is crazy. Why haven't they already done this? Because the problem is the US Treasury market has a lack of demand. I was at the Bitcoin Energy Summit last year. I got a chance to talk with Byron Donalds, who's actually my local representative. He sits on the financial services committee. He told me, he said, CJ, you're not going to believe this. I said, what's going on? He goes, when I was on the financial services committee, we were talking about stable coins and how they create demand on treasuries. And I said, well, Byron, that's cool. But what concerns me a little bit more is that the financial service committee is talking about demand on treasuries.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I mean, I think, no, no, no, you're spot on. And, you know, World War III is being fought in the field of finance. We see Donald Trump coming out and talking about tariffs, getting rid of the income tax. You know, these are all really exciting ideas, but it's the income tax that actually secures the bonds. Our United States treasuries. So if we were going to take that production off of our own selves and then put it into the spending of what we do into other countries, it's kind of like doubling down on the existing problem, right? Because we print all these dollars and we send these worthless paper dollars to these people and they send us real stuff. And okay, well, what's the promise that I'm going to get these dollars plus interest back? We enjoy that stuff because we're very productive on the financial side of things. We're the most financialized economy in the world. We have a lot of value driven to us through the stock market and we're able to collect those taxes to secure the cash flow required to finance a portion of the bonds. But if we could do it fully, then the Fed wouldn't hold.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“In rehypothecation, we do not believe in usury. And because of that, we want to deposit our monies at an institution where my deposit liability is going to be backed one.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“That's why I said earlier, you just want to make sure you're choosing your counterparty correctly. And something that's really interesting here, and we have some legal interest here in the state of Florida about this with some parties that we're working with, there's a thing called healthcare sharing ministries. And if you're a healthcare sharing ministry, you are actually a nonprofit ministry that separates yourself and then is no longer under the Affordable Care Act because you're signing a statement of faith that you want to segregate your medical cost from the other people who are not of your faith and do certain things with that medical money that you don't believe in and that you wouldn't do with your money. So there's a special designation for health share that separates them and regulates them in a different way than a typical health insurance company. Well, at People's Reserve, we believe there's a future where there should be some type of financial share or what we call thin share. And people sign a statement of faith where we do not believe in fractional reserve banking. We do not believe.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Going to happen is people are going to get hurt because they're going to settle with you on the US dollar value of Bitcoin at the time of the crisis. So much like the people in FTX had Bitcoin at $16,000 and then they went through this whole big process. A couple months later, Bitcoin's up at $30,000, $40,000. A lot of people are like, this is great. If I can just get my Bitcoin back, you know, I'm sitting pretty here. But then they found out, well, you're going to get the US dollar denominated value of Bitcoin at the time of the crisis. So I see that transitioning perfectly. into the eventual fractional reserve rehypothecation scheme crash that comes from banks having to learn the hard way because we all have to learn the hard way and unfortunately i don't think they're going to listen to people like you and i and they're going to take that calculated risk in order to increase their profitability and that risk unfortunately just like mortgage back securities gets passed on to the marketplace and the marketplace will have to print and make up for it so”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“In that credit cycle where there's a destructive part of that credit cycle, which is a natural and healthy part of the credit cycle, which we don't get right now, by the way, it's too big to fail, right? So just print over it. And that's the source of the problem. If we were allowed to have some creative destruction, if we were allowed to have the mismanaged and the over leveraged destroyed like we saw with FTX and other lenders who chose to use rehypothecation schemes, well, then they get destroyed and you build from a stronger base. And the economy right now, we're so far beyond zombie companies. We're literally in a zombie economy. That's how far we've come. So we need to get back to the natural credit cycle and accept that creative destruction is a good thing to have. And if we integrate Bitcoin, we can see that happen. I agree with you in that fantastic article you wrote that this is there's an extreme amount of risk behind rehypothecating and using fractional reserve banking practices when bitcoin is the customer liability and”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so this is a huge thing for Bitcoin. I don't think people really understand it, and they don't want you to understand it because it goes to the balance sheet. It goes to what's actually happening at the banks, right? So when you make a deposit at the bank, they're not putting your money in a vault and like putting armed guards next to it. Technically, you're lending them your money, which is why they pay you interest. Well, when you lend them your money, that deposit to you is your asset, but to the bank, it's their liability. Now we have different reserve requirements and ratios. The Federal Reserve says zero percent reserve requirement, but you also have basel banking. And then you have banks who make up their own protocols and policies to stay within that gray area. And with every liability, there needs to be a corresponding asset. Well, in fractional reserve banking, that corresponding asset can represent multiple liabilities. And the problem is when Bitcoin is that circulating liability, you can't print more of it. So if you're going to fractionally reserve it at some point in time,”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Going to see a rumbling, a shaking, and money markets, and in the foundations of finance. And if you want sustainably lower interest rates, well, maybe it's not based on supply and demand and price controls. Maybe we go to that variable that is risk and you can incorporate Bitcoin into that product, into that debt issuance to mitigate risk, allowing for sustainably lower interest rates. And that's the magic of the People's Reserve Bitcoin bond.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And then on the flip side of it, yeah, we don't simply don't believe you And on the flip side of it, if that rate gets too high, then we see what we, the US Treasury is stuck issuing on the front end of the curve. Because if they issue on the long end of the curve, the interest expense is going to go up. And the higher the interest expense goes, the greater the deficit. Well, the greater the deficit, the worse inflation is going to get. So I think right now we're kind of in that sweet spot where it's like not too negative and just enough of the long-term people to say, well, you know, if I'm losing a couple of percentage points, then so be it. At least I know I'm going to get paid my money. But if they lower interest rates and all of that money on the sidelines goes rushing back in, like they lower the Fed funds rate down and they forced all that money back into the marketplace, you're going to get the prices anyway, which is going to create the deeper negative real rate of return. So we're stuck between a rock and a hard place. And at people's reserve, we believe that the future of finance is going to be built around Bitcoin equity.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Getting less goods and services. And this is the problem that the Federal Reserve faces right now and the United States Treasury and Donald Trump. So you can lower the front end of the yield curve all you want. You're not going to be able to convince businesses and other entities that are using treasuries or trying to use treasuries as a store of value to lend you money with a more negative real rate of return because that's what you're asking them to do. You're asking them to swallow and accept a greater loss of purchasing power over that duration it's getting to the point now where they're saying no. We refuse to do that.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I should have been able to build three more factories, and now I have to finance just one factory because my savings in that treasury note isn't paying the yield that it needs to pay to keep up with those prices. And that's why we're getting that sell-off pressure, what yields are getting pushed up on the long end of the curve because lenders are not being compensated and real rates of return. In other words, when you take the APY that you're getting on your debt note and you subtract the price increases, real rates of return are negative. We're going right back to free market incentives. When real rates of return are positive, that makes sense that you would not spend or invest and that you would save your money and lend it to the government because at the maturation of that note, you're going to be able to buy more goods and services. But when real rates are negative, it does not make sense to save your money and lend it. It makes sense to spend it and invest it immediately because you're going to get more for it that day, even if you get the yield at the maturation prices have increased beyond the yield.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, and that's a great question because I think that is the number one and most important thing going on right now besides the monetization of BTC. So when you look at the yield curve, right now they're trying to do that. Right now they're lowering the federal funds rate. And the free market, the bond vigilantes are saying, no, I don't really care what headline CPI says because prior to 2020, I believed you.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“But if you talk to most people, they look at it as a liability. They want you to pay off your debt or you're in bad shape. Not today, not when the rate that you're borrowing at is lower than the rate and the increases in prices. You're actually getting paid in terms of purchasing power to borrow. And that creates the problem because you want to keep your low rate debt. And God forbid, but maybe 15, 20 years, if you have a $2,000 mortgage payment, you might be able to pick those $2,000 up off the ground and then walk into the bank and make that payment. That is an asset to the borrower and a liability to the lender. And that's why the banks don't even hold these loans on their books. People's reserve is going to be happy to hold self-repaying mortgage loan on our books because we've eliminated risk and we're getting a good yield on secure cash flow backed by a fully reserved asset and a real world asset. The banks, they take their fees and then package all these mortgages together in a mortgage-backed security and then sell it off as a cash flow product because it's too risky. It's not an asset. It's too risky to keep on their book.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I was going to say because there's so many things popping in my head. You said it perfectly. You look at your debt as an asset.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So whenever you try to mess with a yield curve, you can get in trouble. And a fixed rate is actually a price control. I think that's something that's actually come to fruition because of fractional reserve banking, because of the ability to create circulating credit that's not backed by reserves, whereas Bitcoin credit is a commodity credit that's fully backed by reserves. So it's a different set of rules and laws based on free market mechanisms versus this fake world that they've kind of created and titled finance.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, unfortunately, the trade off is the adjustable rate, which allows for the liquidation risk to be removed. So if we go back to fixed rate, now you have to reintroduce the margin call in liquidation risk. To balance out that factor, you have to adjust the rate because that's how you compensate for risk, which what's so amazing about this marketplace and the internet economy is that interest rates are not just going to be based on the supply of money and the demand for loans, but the perception of counterparty risk. So it's not going to be a price control stated rate based on anchor rates like we see today. And even now, the Fed is lowering the front end of the curve by stating the federal funds rate lower. But the 10-year, which is an anchor rate for mortgages, is not listening. It's doing its own thing.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Savers of Bitcoin where you can sleep easy at night, not have to worry about the volatility of Bitcoin ending up leading to a margin call on your home or your property or your rental property or whatever it may be. So that's the idea. That's the focus behind our products to make sure that we can empower Bitcoiners with products that remove liquidation risk, which is going to be the largest risk in the near future.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“There are specific thresholds that when you move to the next threshold, your interest rate will adjust upwards or downwards. You could actually secure an interest rate with people's reserve that is upwards of minus a 50%. So if prime is at six, you can get three. If prime is at three, you can get one and a half. And we're able to do this because of different mechanisms within our system. But the other important aspect to this is BTC collateral is held in multi-sig, and there's no rehypothecation. And if there is repotation, we would be in breach of contract. Where Bitcoin maxis building for Bitcoin maxis. So we want to make sure that we hit all of these important points in this product to make sure that Bitcoiners understand, wow, people's reserve knows that Bitcoin is the most pristine form of collateral in the world. People's reserve knows that the Bitcoin that I've been responsible to save up plays an important role for the plans of my family and the future generations. And we want to build tools and services that empower you as responsible.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So, what do we do is as the price goes down, what happens is the risk for the lender goes up. So we have to adjust your interest rate up to compensate for the additional risk. And if the price of Bitcoin goes up, vice versa. Our risk goes down. We can lower that interest rate for you. And then there's a few other options that go in there as well, like maybe you don't want to sell all of your Bitcoin. So you can sell a portion between zero and a 100% of your monthly payment. Since you ask for a specific example, let's just say that our interest rate would start at like prime plus one. But the more and more Bitcoin that you...”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“That's the biggest risk for losing your Bitcoin in the near future. So, how do we avoid liquidation risk? We create contracts that don't require the Bitcoin to serve as the main form of collateral, on which upon margin has to be called. So when you sign up for a Bitcoin self-repaying mortgage, it's really like a traditional mortgage and that there's a lien against the home and that we are very biased lenders and we want to lend to qualified borrowers. However, you can post your Bitcoin as an extra component to the contract. And what we do is we take the value of your Bitcoin and we take it relative to the value of the debt and we form your LTV. So the LTV is always going to be based on the Bitcoin value relative to the value of the debt, but that's not the only thing securing the loan. It's also the lien on the property. So what happens is we can say to you, you will not lose your Bitcoin if the price goes down. And that's a really important concept because I don't want people to lose their Bitcoin for any reason, including volatility.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Access to the proper products and services to borrow against their Bitcoin, there is no price that can incentivize selling. That introduces a new risk. It's called the liquidation risk. And I think we're going to see the banks with the repeal of SAP 121 and that amazing article that you wrote with rehypothecation. The banks are going to play these games and liquidation is how they're going to get your Bitcoin. You have to be really careful on who you choose as your counterparty and why you're choosing them as your counterparty because it's not just about non-fractional reserve banking practices with no rehypothecation. It's also about liquidation risk because Bitcoin is volatile. We know that. It's a positive characteristic of the asset class. Well, at people's reserve, our mission is to remove that liquidation risk for you. So this product is you're not directly borrowing against your Bitcoin. That needs to be well understood. Every other product in this industry, you are borrowing directly against your Bitcoin. And if the price of the Bitcoin goes down, you can get liquidated.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Sure, absolutely happy to. So the first thing is there's a couple of issues. And before I dive into the product, I want to make this issue clear because we talked about earlier how price can go up and it creates profit and that incentivizes supply. Well, what's really interesting is when we have the proper borrowing tools and products and services like we see coming from people's reserve, there is no price. The marketplace can offer to incentivize selling. So typically the market would incentivize you to sell by raising the value of your Bitcoin. But look no further than Michael Saylor to understand when you're borrowing money and the value of Bitcoin goes up, you don't sell your Bitcoin, you borrow more money and buy more Bitcoin. So there's a really interesting dynamic here where we're getting into a time where I think it's going to become clear. And I think this is the marketplace's next big orange pill really, that there is no economic way to incentivize selling of Bitcoin. The raising of the price to the person who has access to”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“You're a fool, and you need to study it a little bit more. And trust me, I was a fool, so I had to study it a little bit more, you know.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“We were having a kid people need a home. It's part of the hierarchy of needs. And you want a nice home to be able to raise your family and make memories. I mean, it's way worth it. But I say, you know, I'm alive on the outside, but I'm dead on the inside because I know this house is, you know, I have no chance of getting anywhere near the amount of battle Bitcoin that I paid for it. Real estate is absolutely crashing against Bitcoin. That was a big motivation for our Bitcoin powered mortgage product, which we call self-repaying mortgage. And then on the flip side of that, our Bitcoin bond product is about the cash flow. You know, at some point in time, you want to escape the rat race. You want to not have to go work for the man and clock hours. And you want your equity to be able to produce that cash flow for you. And I think that's why real estate became so popular because it is that source of cash flow. And what do we want to do? You know, I don't want to sell my Bitcoin. I don't want to sell my, there's nothing that can convince me to sell my Bitcoin. I think if you sell your Bitcoin.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And one of the first solutions is that you can borrow against it. Unfortunately, with the mechanisms that are set up right now, absurd interest rates are required in order for you to tap into that equity. So it kind of mitigates any reason to actually take out the loan unless you're going to have investments in something that are going to produce at a really high CAGGR that you're extremely confident in. It's a bad carry trade, if you will. The other thing is we have Bitcoin and we want to figure out how do we create cash flow that old fiat mind disease i like to call cash flow 60 somehow isn't good enough right we need cash flow but uh for me personally i bought my first house and right now the damages are up to nine million so if i had just kept that bitcoin i'd be nine million dollars richer and it's going to get worse as time goes on especially as we're reviewing the monetization of bitcoin right now with our own eyes but being forced to sell the bitcoin to buy the house which was a decision that me and my wife”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so unfortunately, I paid a lot of the research and development cost that went into this through my really bad decisions of letting go of Bitcoin. So people's reserve is a company that is designed to empower we, the people, to empower us holders who have been responsibly saving in Bitcoin. I think the biggest problem us Bitcoiners have right now is we have a lot of wealth trapped in what I like to call the internet economy. And the internet economy is this amazing domain. No one country can control it and no one country can outcompete it. And we actually have a free market yield curve in the internet economy on its reserve asset, Bitcoin. So it's the only economy in the world that is number one debt-free. And number two offers a free market interest rate on its reserve asset. So as a Bitcoiner, my first question was, okay, well, I have a lot of this wealth tied in the internet economy. How do I access it? How can I unlock this wealth? It's trapped equity.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Absolutely. I mean, you're spot on. Look, let's remove the human element. Let's remove politics and emotion. You want to talk about data dependent? Bitcoin is the ultimate form of data dependency because it's simple mathematics. So it's not that complex of a process to understand. And then when you, and I do consider it separate from the having because the having immediately reduces that block reward by 50%, there is no mercy on that. There's no metric to gauge. It's just every time we get to that point, we hit a having block reward down by 50%. But the difficulty adjustment has a little bit more of a breath of life in it and to where it can adjust up. It can adjust down. And it does it over that two-week period. It's basically the optimization of a mechanism to help regulate and control growth of a network. It's beautiful mechanism.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Recentivizing growth of the network. It's absolutely amazing. It is literally alive and breathing. And there's no other asset in the world that we've ever seen like it ever before.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I think you said that beautifully, and I would like to add that it's not that complex of a process. So for people who don't understand the difficulty adjustment, every 2016 blocks, which is roughly every two weeks, the protocol will look at block times. And if the average block time is less than 10 minutes, then the difficulty will increase. And that increases the cost of production. Now, what's amazing is, and this is, it reminds me of the Fed. It reminds me of the central bank. Is the difficulty adjustment the central bank of Bitcoin? I love that question because, you know, when the economy gets too hot, you raise those interest rates, try to slow it down. Economy gets cool, you lower the interest rates, try to heat it up. Well, we have this mechanism in Bitcoin too. When the hash rate gets too hot, you raise that difficulty. And that decreases profitability. And some machines will be forced to turn off because they won't be profitable anymore. Vice versa. If the hash rate is slowing down, blocks take longer than 10 minutes. Difficulty can decrease, increasing profitability and then”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Well, it's the same thing for Bitcoin. If you want to access the value proposition of Bitcoin, which in today's world of lies, a truth ledger happens to be probably one of the best value propositions that exists, then you're going to need to pay a price above the cost. The magic happens that Bitcoin is the only commodity in the world because of its strategic engineering, that it can actually raise. Imagine if gold, I mean, we talked about how the halving could double the price of your equipment. Imagine if gold just decided, ah, you know what? I'm going to make myself harder to find today. It's alive. It's breathing and it's a mechanism built into the money itself, which is why I like to refer to Bitcoin as engineered money. And perhaps the, in my opinion, probably the first form of true money because of absolute digital scarcity.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“The marketplace and Bitcoin takes that mechanism and leverages it to drive value into the network itself. So I always say, you know, gold has an all-in sustaining cost. And as they devalue the dollars, the cost of production is going to continue to the rise because the labor, the land, the materials are going to rise as the dollars are diluted, which means that cost needs to be passed on to the consumer. So if you want to access the value proposition of gold, you have to pay a price above the cost.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And this is the cost that it takes a minor to rip the gold from the ground and sell it into the marketplace. And we know the natural laws of economics and price discovery work with that free market price signal where profit is the invisible hand that drives the market. So the cost of production is really the beginning of the margin. Because if the price goes below the cost, there's no profit to be made. So there's no incentive to expand supply. And that dynamic then allows you to start to understand, okay, when I go into the grocery store, I'm not making a bid on what I want to pay for the item. The producer is responsible for setting the price point. And when he's looking at his balance sheet, he needs to understand that all in sustaining cost so that he can ask for a price above the cost, because that's why he's in business to make a profit. And what's amazing is if you become too greedy, then the competition within the rest of the marketplace is going to undercut your price. So it's like a natural mechanism to balance.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I love that gold example because that's how I linked it in my brain as well. And I always tell people, actually, one of my best Twitter posts and my highlights is about what they call the all-in sustaining cost in the gold marketplace.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“It was strategically designed to leverage these natural laws of economics and commodity cycles and price discovery to empower its holders. And I've been hooked ever since.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So, the harshness about getting into the industry was that I had no idea what the difficulty adjustment was. I had no idea what Having was, and you know, I'm sitting there doing calculations on my computer like, oh, if I get this many machines, I'm going to make this much. And I've order these new machines, then I'm really going to be cranking. But you don't account for difficulty with everybody else getting those machines delivered, hash rate increasing, block times going less than 10 minutes, difficulty going up every 2016 blocks. And then you get hit with the halving where your profitability gets cut in half in one day with no mercy. So that was like, wow, you know, that was my next big orange pill that really made me fall in love with the protocol and understand that it was an engineered money.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“It was like one of those learning experiences. But I think the real value I got from that though to this day, I still recommend people pick up hobby mining not to make money, but to learn how the network works. to learn how price discovery works with a proof of work consensus protocol with the cost of production of bitcoin being the starting point for price discovery in the marketplace that has just delivered an immense amount of knowledge and understanding to me which i was able to transform into the bitcoin fair value algorithm which miners use to properly manage their treasury through this commodity cycle so that was like my first real big orange pill and then”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“This volatility is going to be amazing because I can buy and sell, and I just click the buttons and I'm going to be rich, right? I mean, I'm going to be the best trader in the world. And of course, I get absolutely demolished and smashed. I watch Bitcoin go from 100 bucks up to $1,000. And then all the way back down. And I'm like, okay, I have no idea what this is. I have no idea why these things are happening. I better find out what's going on here. So I started to take a deeper dive. And that's where the fun really began for me because it became more of a passion. I got into mining. So I started building my own rigs and I'd never build a computer before. I actually built like wooden frames. Like how silly and stupid of me to do that. But I was just so eager to like get hands on and kind of learn how it worked. And I started plugging machines in the wall and they started making money. And I was like, well, time to scale this puppy up. That time I lived in a townhouse with my girlfriend and I broke our air conditioner from all that weird. She's like, that's it. You're done. Get it out of here.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, well, mine wasn't that lucky, but man, what a crazy story that is. Found out about Bitcoin in 2013. And I learned from Jeff Berwick, calls himself the dollar vigilante. So I subscribe to his content and listen to all of his things, learn from him. And it was really interesting because around that time in school, I had done accounting and moved on to finance. So I was learning things that I'd pay to learn. And it was capturing my attention. It was very intriguing. But of course, just like most people who start in Bitcoin, I thought, you know”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Well, thank you so much for having me. It's great to be here. I've been a longtime fan of your work, and I've learned a lot. So it's kind of surreal for me to be on the other side of the screen here.”
2025-02-12 · We Study Billionaires · BTC221: Bitcoin Self-Repaying Mortgage Products w/ CJ Konstantinos (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT