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

“So let's call it 300 for a simple map and let's round the treasury supply to 30 trillion where it'll be any minute now. So if 30 trillion in safe and 300 trillion in everything else, if you understand like at the margin demand for treasuries, because if you think of the 30 trillion supply, let's say 25 of it are locked up in very strong hands. So the marginal availability of these treasuries is not that big relative to the size of money in the world.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yes, and that's why United States Treasuries are the interest rates are so low on them because the demand is theoretically the entire supply of money that exists at any time. This is something that I didn't really get into in the book because trying to talk about the direction of interest rates and why interest rates are so low doesn't really fit into the story of Bitcoin. But it's actually crucial to understand this. It comes down to two worlds. You have the safe world and everything else. And we know from the international statistics that the approximate size of dollar denominated debt across the world is well over.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And that is a problem. That's why the Fed had to step in and basically create a repo facility in which they basically said all Treasury collateral across the world. They included foreign institutions later in this. Everybody with a Treasury can get cash from us if you need it. I mean, that's a band-aid on the system that you can never rip off. That is why I refer to the Fed as the lender of only resort. They're the only game in town because there is no liquidity otherwise.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And that is actually now the natural state of our financial system. And I do believe that that's due to this moral hazard that the Fed has created by responding to every situation with unlimited bailouts. And it's not to fault them explicitly because they have no other choice. The system is broken and the banks don't trust each other. And that is the core problem with the financial system. got crazy in March April of last year when the pandemic started the banks what they do is that they don't lend to each other in the wholesale money market anymore they don't engage in repo lending to each other meaning that even US treasury collateral doesn't warrant a loan from your neighbor and you know your banking neighbor”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“The problem with our current financial system is the interbank counterparty risk where banks don't trust each other when things get tough because they all are expecting the Fed and the central banks to come in and save the situation. So when things get difficult, they all pull back from each other.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“This is the idea that when bankers issue a loan, they're actually creating money into the system that didn't exist before. They do that because when they create that loan, there's not necessarily a precious metal that is backing that money coming into existence. And so in order for a government to create money, back then, they had to mint coins. But bankers could issue debt to each other credits, credit money and not reserve it with any metal whatsoever. And so that's what I mean by, you know, it comes from their balance sheet. They just write it into existence. And Milton Friedman also called it the bookkeeper's pen, which we talk about in the book as well. But all liabilities of a bank are dollars are just forms of liability. From the bank, and it comes from the bookkeeper's pen.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“for the world. And I think Bitcoin is going to become that and it's already on its way. But back then, the Florin being the coin or the measurement, the unit of account, the denomination that everybody rallied around, it was the first time that had ever happened in our modern history. And that was a revolution in itself. And I think spurred a lot of economic activity because everybody was speaking the same language for the first time.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So, the advancement in denominating everything in florin was that before the florin stability, when you had a world of coins changing purities all the time, nobody had a common language in terms of how to account. They would account in gold and silver, but they didn't have an exact measurement that they all agreed on. The foreign gave them that. And when I say them, I'm talking about the European continent as a whole because who cares from a global economy's perspective if everybody in a town is using the same accounting language? But if you want to do it on a global scale and think in dollars today, how everybody thinks in dollars around the world, it's the benchmark, it's the measuring stick.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Hearing a lot of points and deferred settlement basically means I'll pay you back next time and write it on a piece of paper and sign your name on it and sign each other's name. And it's a financial agreement. And so that type of situation was what I call the second layer of money because it's a promise to pay the first layer of money, which are gold and silver coins.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“This time you really had the idea of a global economy forming where cities across Europe were prosperous, Northern Africa, into the Middle East and all connected by the Mediterranean. And they started trading with each other year round. And this type of year-round trade led to a need for deferred settlement where you didn't have to exchange coins every time to the last cent every fare. By fair, I mean the trading events that happen across the continent seasonally. And so if you didn't need to or want to settle in coins every time a transaction took place and remember, we're in the 13th century here. Deferred settlement was a way to escape that risk of transferring coins or”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I think it came to the form of government. So it was in a post-feudal society. And these city republics across northern Italy, Florence, Venice, Genoa, Pisa, they all had mints. And they all had coins that lasted quite a while. So it wasn't even specific to Florence. Florence was just the one that got the network effect, as you know, in our modern terms. It's the one that got the network effect across Europe. But I do believe that from what I read and the history of Renaissance Florence is that it was this post-feudal society that allowed this republican form of government to lead to this type of stability.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“The interesting thing is that at the time the Florentine Mint creating the gold florin coin meant nothing because hundreds and thousands of governments and empires and kings had created coins before that point. Gold coins came to be about 700 years before Christ. 1900 years had passed before the Florentine Mint created the gold form. What was remarkable about the florin was that it went unchanged in purity and weight spanning four centuries for over 300 years.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And I had already concluded that Bitcoin was digital gold and I knew that the book would require a history of gold itself. But when I saw Bitcoin at the top of the hierarchy of money in the future, that was the moment when layered money started to come together as a story. That was at the end of 2019. So just over a year ago.”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Well, I've wanted to write a book about Bitcoin for about two years now, two to three years. But the aha moment came when I read an economic professor's paper. The paper is titled The Inherent Hierarchy of Money by Professor Perry Merlin. He's an economics professor at Boston University. And when I read his paper, I realized that Bitcoin was going to be the first layer of money in the future in the same vein as this paper that this professor had written. And in that paper, gold was in the framework the first layer of money. And the paper was a theoretical framework for how money works and how a credit money system works. And I just”
2021-01-27 · We Study Billionaires · BTC010: Bitcoin & Layered Money w/ Nik Bhatia (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT