YouSaid · the spoken record

Nik Bhatia

lines on the record: 64
first: 2021-01-27
most recent: 2021-01-27
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“You so much, Preston, for having me. You guys can find the book on Amazon layered money, Amazon Worldwide, Barnes& Noble, the retailers that are selling it as well. You can find me at layeredmoney.com. You can find the book there too. And you can find me on Twitter at Timevalue of BTC.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“On, Tether stuff, it's like there's so many ways to poke holes at Bitcoin, but one stable coin is just not the way anymore. And one government ban is not the way anymore either.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And then it would recover. And so if Tether went down tomorrow, the price of Bitcoin would probably go down. And maybe 25%, but then it would recover because that's all in a day's work for Bitcoin.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, well, think about it like this. If Coinbase failed tomorrow, the price of Bitcoin would go down significantly and then it would recover.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“There was a report a few years ago, and you'll have to fact checked me on it, but there was a report where they came out, some research had said, we think that there's about 72% reserve based on what we've discovered. I think that number is from a couple years ago. So don't quote me on it. But my point being, I think Tether is probably mostly reserved and they might have a shortfall, but the price is hard. So, I mean, what's the big deal? Like bank deposits trade at par to other bank deposits regardless of how fractional reserve each one of them is. And there are other fully reserved stablecoins out there that are developing and underway and have market liquidity. And, you know, the market. And so I think that Tether's importance is really dwindled in the grand scheme of things.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“It's not going to have any, you know, it's going to be monitored. Every transaction is going to be logged and monitored by the government. And I think it's probably going to be naive to say that every government won't do that. But whether or not you monitor it is not the issue. Whether or not you restrict it and how much you restrict the use of it, I think will be interesting. And some central banks will allow people to use it. Tether is probably three quarters reserved by dollars and trades at HAR and has been criticized for years as not being fully reserved, but still trades pretty close to par. And its importance has dwindled over the years. So it's kind of a non-issue to me now.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Be determined, my book recommends that the central banks treat their digital currencies with as much freedom attached to them as they are willing to cede. That is the recommendation. How close they will get to that will vary widely across countries, let's just say, first of all. And secondly, I do believe that some will emerge that let you use it pretty freely. And I can't predict all of that stuff. All I can do is advocate that in the future, air toward the side of freedom, we can be sure that certain countries will not do that. The DCEP, the DCEP project from the People's Bank of China, this digital Renminbi is not going to be a freedom currency.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Simple answer Bank of America, JP Morgan will have a wallet product where you can store your Fed coins. And they're already working on that stuff. It'll be very easy for them to do on day one. You won't even notice it. Like your cash will be or your helicopter money will just be in your JPMorgan chase.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I think it's a lot quicker than you think. So China will be live by next year. The European Central Bank will, by the end of this year, have a plan for their live version. So ECB will have a live test going on next year, 2022. Reserve bank of Australia, Bank of Canada, and Bank of England will all be in that kind of live testing by next year as well. A reserve bank of Australia is already in their testing phase. So they're using a technology and doing some testing. The Fed will be last of all these major countries, for sure. They'll be last. They'll get FOMO'd into it, but they'll be able to do it really quickly because they'll copy what the ECB and the Bank of England does and they'll adjust it for themselves. Now the wallet question is a super”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Of the Fed getting crates of dollars up into a fleet of helicopters and dropping them over the populace in order to stimulate the economy because the Fed can't give money to people unless they drop it from helicopters. But a CBDC allows them to do this. So it's the digital helicopter. And if they will happen for this reason. And so that's the way I see them unfolding. They won't tell you that until right at the end or right after they're like, oh, by the way, we're going to use it to give you money. Or hey, check your wallet. You have a thousand Fed coins. So that'll take some time to unfold, but that is my prediction.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I think the CBDCs will be used for helicopter money. What do I mean by that? Today, in the United States, if the government wants to stimulate the economy by giving money to people, they can write checks and send them to people as they did in 2020. If the Fed wants to stimulate the economy, they cannot do so directly to people. They have to create monetary stimulus that goes into the banking system, hoping that the banking system then issues money and loans money to the public and hope that their monetary stimulus ends up helping the employment situation and so forth. The term helicopter money comes from, again, Milton Friedman, who gave an example.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Arbitrage opportunity isn't well developed yet. And that will happen with time and with enough participants that trust each other and are willing to move money quickly. And it also has to do, Preston, with jurisdictional arbitrage. So one of the things that, you know, Bitcoin exchanges are very cloudy in their jurisdictions. And that comfort of the arbitrageurs with the jurisdictional mysteries it prevents closing that spread. So it'll take time.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So arbitrage exists for the people that are willing to make that bet. You know, my favorite example of arbitrage are the buyout arbitrageurs, where a company gets bought for $35, the stock rallies to $34.75. A hedge fund comes in, buys all the shares, and makes a quarter when the buyout closes. And that arbitrage opportunity is there. They take it. And there are people that are willing to make that market and take that risk. Well, the same degree of ease of closing that arbitrage isn't there for enough people to be comfortable with yet. And that's why the spread is as wide as it is, because the comfort in executing, or let's just say, the confidence that you can close on the”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Like a securitized yield curve, meaning a yield curve with instruments that are treated like securities with a high degree of transparency, liquidity, none of that stuff really exists in Bitcoin yet. It's more of a maybe a next five years building out that true capital market. But the more native small natural money markets like Lightning Network, or there's a market for liquidity dedicated to this pool of capital that routes payments, that's already starting. And the size isn't really there to attract what we think of as capital market size, but the ideas are there. They're starting and those type of native Bitcoin ideas will be foundational in how we think about Bitcoin-denominated interest rates and risk.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“About that stuff. I've played around with yield curse and Bitcoin, and it's not a great exercise because there aren't that many data points and there isn't that much liquidity at each data point. So making sense of the shape of today's Bitcoin yield curve, it's not a very useful exercise to me. Neither is speculating what it will look like in the future in terms of where the rates will be. But upward sloping, yes. maturities all the way from one minute to 100 years probably and watching those instruments develop will be very important for a transfer of denomination from fiat currencies to the world of bitcoin and we don't really see that happening today in any size where we have fixed income instruments denominated in bitcoin and a”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I think it'll mirror other upward sloping yield curves. The theory behind an upward sloping yield curve partly derives from this idea of a liquidity premium in which you demand a higher interest rate for locking your money up for a longer period of time. So liquidity premiums and positively sloping yield curves are what I feel and I think financial theory also says is the natural state where if I'm going to lend you Bitcoin for a day, I'll charge you 10 basis points. But if I'm going to lend it to you for five years, I'm going to charge you 15% or something like that. The shape of the yield curve, how steep it is, I think it's very, very premature to start speculating.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Is part of its immune system that lets it not get adopted too fast, not get the governments too angry. And it's an amazing thing to watch some technology like this. I was very young when the internet started and so I didn't get to see that unfold and understand the power. But I get to see it this time. And it's really cool.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And that seems to be the natural evolution. Bitcoin is alive. It really is this organism. And there are people out there, writers like Robert Briedlove and others, that they talk about Bitcoin in this really like majestic way for the human species and how empowering it is. And I love all their writing and I can't really echo what they say. And I recommend reading and comparing Bitcoin to mushrooms and comparing Bitcoin to the number zero and these powerful ideas of what Bitcoin is and just the way that it grows and the way that it beats like a heart and it goes like an organism just evolving it has all these natural defense mechanisms. It has this immunity and maybe probably this boom and bust cycle.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“No, that is it. And I don't even think that it's possible for anything to go straight parabolic and it wouldn't be a good thing either. But the way that Bitcoin grows is like a heartbeat. It pumps and then it pumps again. And each time it pumps. It leaves something in its wake.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And I think that Bitcoin's natural four-year cyclicality where it has this boom and bust cycle that seems to keep repeating itself now, where it looks like we're in the third one and it's no longer a coincidence. Each time the price crashes, it brings the heat off. And so I hope we get the crash before the heat gets too hot. And I think it will. And it keeps growing bigger and bigger each time. And I think it's a foregone conclusion now that governments won't come together and ban Bitcoin. I just think that will never happen.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Somebody, and again, by person, I mean nation, somebody is already going to be extremely long Bitcoin. Either in the Treasury or from a regulatory perspective or the taxpaying corporations within its borders are all killing it in the Bitcoin world, charging Bitcoin for their goods and services, denominating their balance sheets in Bitcoin. So somebody is going to be long at that point, so long that they'll say, no, we're not going to rid Bitcoin from our country. We're better yet dreadful.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I think what you have to do is exactly what the OCC, the United States Treasury just did. They legalized the use of Bitcoin as the rails of the financial system for clearance. And I would double down and make United States the home of Bitcoin the most friendly and allow a world of dual denomination where banks can right away start running parallel balance sheets in dollars and Bitcoin so that they can get comfortable and ready for the transition to a world with a more neutral money like Bitcoin.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I don't think that nations will come together and hammer this thing down to the ground from a regulatory perspective. But you do bring up a very interesting scenario. And the game theory is fascinating what that type of situation will look like. And it probably will maybe here, maybe in another country, and it actually makes me excited to see what happens. Because I do feel that Bitcoin will find a way. It always does. And watching Bitcoin find a way when the governments get most aggressive is going to be breathtaking to watch, just like how the decentralized network gets around the government's”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Left, right, and center, and anybody that thinks that the government is going to ban Bitcoin is not paying attention whatsoever to what's going on in the regulatory landscape. I mean, it's embrace, embrace at every step of the way because the government realizes that number one, Bitcoin is a form of speech, because it's a form of cryptography. And number two, that there is nobody you can send a letter to subpoena in Bitcoin. And therefore, it's an independent concept and cannot be constrained. They realize this. So other governments will echo this type of thing and governments like China and other sort of more authoritarian governments, dictatorships, those types of things, they will ban Bitcoin and probably do so effectively because the”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Well, I think that the United States government, which is the most powerful, influential regulatory government in the world still is wildly accepting of Bitcoin and full embrace. The proof is in the pudding. They treat it like a property at the IRS. So it's like on par with gold to the IRS. It's regulated as a virtual commodity by the Commodities Futures Trading Commission. now the latest office of the Comptroller of the currency ruling on these independent node verification networks, this long new acronym that they have, they basically said that banks can use Bitcoin now to transfer money to each other as long as they follow the law. So it's a wild endorsement from the United States government.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“80 price corrections are well within the historical context of bitcoin so maybe i crashed down to five thousand dollars wouldn't really alarm me necessarily because we've seen it before in bitcoin several times so maybe it's a little bit of a copout but there's not anything right now that's threatening bitcoin's rise dictated by you know what the price is telling us”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Is truth. It's my favorite quote in the world because the price tells you everything you need to know. Now, what is the problem with Bitcoin today? The price says that nothing is the problem. The price says that Bitcoin is a growing asset that is an emerging technology, that is seeing adoption around the world in an exponential sort of way. I mean, the price says that everything is good. If the price of Bitcoin went to below $1,000, that would be a cause for alarm because that means something is really wrong with it. And I don't know what would cause that, but the price will tell you, I promise you that if the price of Bitcoin goes below $1,000 in the next 12 months, there's something seriously wrong with Bitcoin. The price will tell you that.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so I mean, Shaw 256 underpins Bitcoin, right? So that's one of the basic things is if there's some problem with the cryptography that is brought to our attention. Because, you know, that's the thing that keeps Bitcoin secure. And so the cryptography would be something that changes my mind if we learn collectively. I have no computer science expertise whatsoever. So I have to use my own discretion and I understand that SHA-256 is a secure hashing algorithm that keeps Bitcoin functioning in a way that nobody can tamper with it. And so that is my best understanding of how Bitcoin works. And if there's a problem with that, then we'd have to take a look. So my favorite saying as a trader, and I use it as an adjective professor, is that price”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Do agree with that, and I do believe that the acceleration of Bitcoin as a world reserve currency happens only if those investors demand their returns denominated in Bitcoin. And if they make the companies they're investing in denominate their balance sheets in Bitcoin, it will ensure that the returns, the dividends will be paid back in Bitcoin. you know, several years down the road, I hate to speculate on how long that'll take, but that does seem to be a natural progression, assuming a much larger market cap of Bitcoin in the future.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Bitcoin is a settlement later. It's a form of final settlement. And because of its decentralized nature, this form of final settlement can happen every 10 minutes, 24 hours a day, 365 days a year. And that is quick enough to build an entire financial system on it. That moves a lot quicker down the layers. Because today, settlement on second and third layers takes a long time. It takes days to send money across borders and several transactions. But in a world with Bitcoin as the final form of settlement, and we see this with the Lightning Network, you can actually have second layer transactions that are instant at any value. And so it's really powerful. And it starts with Bitcoin as a settlement tool. It's because the final settlement is so easy to do that we can have lower layers of money that just move at light speed.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Interbank trust. And we don't see the lending because money velocity really comes down to how quickly are banks lending money and the lending is slowing because, like you said, counterparty trust is eroding every day. It gets worse than the day before. And so that causes money velocity to slow. So I think that's one of the reasons we see that in the official statistics.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Thousands of different coins at one time all in the same place is a disaster for money velocity. But deferred settlement and trustworthy bankers that just issue notes that say I'll pay you tomorrow or I promise to pay you tomorrow make things move a lot more quickly. And so money velocity accelerated with the advent of paper money, of promissory notes during the 16th century in Antwerp. But today, money velocity has a more economic and a more quantitative definition where it's actually measured by central banks and their statistics to calculate it. And we see that money velocity is slowing. And it still does refer to a turnover of money in the system. And we see that slowing because I do believe this broken”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so money velocity, I introduce it in a very broad way where I say imagine yourself in the 13th, 14th century using coins every day versus being able to defer settlement with a piece of paper. And if the piece of paper itself was treated as cash, then the ease of using paper versus coins meant that money could transfer from hand to hand more quickly than it could before. And so that's what money velocity means more broadly. It's how quickly does money change hands? How quickly do people transact with each other? Is it once a quarter or are they able to transact every day because money moves more quickly? And having”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And I would say that that's fair because the Fed being the leverage tool in the money market or the actor in the money market, if they keep making money cheaper, they always kick the can down the road. Of this natural counterparty risk and this prospect of default in the system. So to make money cheaper is always the easiest route, that's the easiest path. And that's part of the reason that you see that trend.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“To be honest, Preston, I don't think that question has a great answer because it's hard to know whether monetary policy drives the rates of treasuries down or that treasury rates fell because of other reasons and that federal funds tracked it because of a natural demand for money around a certain given interest rate or a price of money throughout time. It's a tough one.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yes, because at that point, the realization that treasuries were the best way to store the dollars because gold was gone from the financial system and gold was gone from backing the dollar itself, then treasuries became the asset du jour. And that is why rates have trended lower for 40 years, because it's a progressive realization that it's the only way to store dollars safely. And it was the new gold.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“It's a credit money system and the expansion in everything was done on a fractional and as you mentioned a more fractional meaning a less reserved type of way and we are still in the echoes of that expansion i don't think that has ended yet or that it ended back then or that 1971 or 73 where necessarily any break in that it just kind of accelerated and that's the system that we are in today”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I like to think of it as 68, 71, and 73, because 68, the gold pool broke. 71 was closing the gold window in 73 was when the official Bretton Woods agreement ended and currencies free floated against each other and the relationship between gold and the dollar and currencies was ended forever.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“that rush up the pyramid of money, the layers happened in the late 1960s and governments around the world demanded the gold instead of the commercial banking dollars that they had issued from wherever they were issued from. That's what broke the gold peg. And that's what broke the disciplinary constraint forever on money and discipline transferred from a precious metal to a consortium of central banks around the world. And now discipline only exists in their minds. There is no physical discipline in the form of gold where the whole, you know, this whole framework of money originated from. And so the period between 1944, Bretton Woods and 1971”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Central bank issued money that people keep, right? And so the supply of this third layer of money grew and grew and grew, but never challenged up to the first layer during, let's say, the 50s and the beginning of the 60s. But then during the 1960s, it started to catch up and the redemption started coming for the gold because the dollars were so plentiful that people challenged that price. And they said, I'd rather have the gold. I'm calling your bluff. But the government of the United States didn't have the ability to control that supply growth. They weren't the ones that were doing it. It was the banks because the banks issue money to the world. And so when”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So the amount of dollars that were issued after 1944, the supply kept growing and growing and growing. But the price of gold in terms of dollars was unchanged because the redemption pressure on the United States didn't really exist. But it was bubbling up because we had basically a liberalization of how many dollars existed that were lent by banks into existence. So that's why we need to understand the layers of money all the way out to three layers to really understand this model. On the third layer of money are commercial banking deposits. This is the money that you and I use, right? Our money that we keep is a form of deposit money. It's not”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“In 1944, the Bretton Woods Agreement dictated that the US dollar was now the currency of global settlement and only the dollar would have convertibility to gold and all other currencies around the world would have a base price in dollars. And that would be the relationship between currencies, the dollar, and gold. supply was not in check in any way”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Was on par with gold backed money of the people of the Netherlands at the time. And that precedent led to the Bank of England doing the same thing when they wanted to finance a war at the end of the 1600s. And that is when the Fed owned U.S. treasuries, that's what's happening as well. It's a form of privileged lending that originated from the Bank of Amsterdam.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, and in the book, I talk about this idea of privileged lending. When the government inserted themselves between the first and second layer of money, they lent money to themselves in a privileged manner and benefited from that money they lent to themselves being on par with all the other gold-backed money that was out there circulating. And that's the taxation that you're talking about because what you're doing is you're altering the denomination by inserting your own privilege into it. And that was a precedent that was set with the Bank of Amsterdam and the Dutch East India Trading Company and the city of Amsterdam itself. The city and the company inserted themselves into this privileged situation where the money that they issued to themselves”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
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2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
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2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Right, so we see that when the fractional reserve banking evolved, that gold was it exercised discipline on how much money a bank could create because in the end, if there's a bank run, they have to be able to satisfy enough people's deposits or demand for redemption, that enough confidence could exist for that entity. Now, I do believe that fractional reserve banking is a natural evolution because people want credit and people treat credit as money. That's the way that I saw when I was researching that that's kind of how it unfolded.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So disciplinary constraint is another term that comes from the inherent hierarchy of money paper. And what Professor Merlin talks about is that disciplinary constraint is how much you have reserved against how much you're issuing in terms of money. So if a bank has a million dollars worth of gold in the vault and issues $10 million worth of deposit money, that's a 10 to 1 or a 10% fractional reserve situation.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yes, that's a fair characterization. It is accelerating because the Fed is incrementally backstopping everything. So now that you don't have Treasury, a natural treasury market for repo anymore, that the Fed is the implicit backstop there, you're removing the risk that anything fails. Why trust a counterparty when the going gets tough because you have the Fed there? And that's the dynamic that is accelerating, I would argue too.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“It's not what everybody needs. It's the only thing you can physically own to assure yourself of dollars tomorrow. And that is the nature of our credit money system where most forms of money are forms of credit. If it's not the credit of the United States Treasury, it can't be fully trusted. And that dynamic means that when anything goes sour, rates absolutely plummet in the United States, meaning that Treasury prices skyrocket because the demand is it overwhelms the available supply. And that is despite the fiscal profligacy or however you want to call it of the United States government, dependent of the fact that they spend so much money.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT