YouSaid · the spoken record

Vijay Boyapati

lines on the record: 54
first: 2020-12-02
most recent: 2020-12-02
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

“Yeah, so you can find me on Twitter, I'm real underscore VJ at Twitter. I have my article which I published about Bitcoin called the Bullish Case to a Bitcoin, which is on medium. I'm working on turning it into a small book. I've had a number of people ask me to turn it into a book. So hopefully you'll be able to find that on Amazon relatively soon. And yeah, I think that's about it.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“No, no, honestly, I follow you closely. Who else? That's a good question. I have a lot of respect for Safer Dean. His book, I think, is great, the Bitcoin standard. Some of the developers out there, I think are fantastic. I follow them just because I'm technically interested in Bitcoin. So Peter Woolley, I don't know if I pronounced that correctly off the top of my head. Adam Back. You know, some of the people who were early on, Nick Zabo, I think I'd be very upset. I think he has incredibly deep insights about money and about blockchains and the article I wrote, the bullish case for Bitcoin, was in part inspired by his own writing on money. So I'd be pretty sad if he left Twitter as well. There are tons of people, to be honest. These are just coming off the top of my head.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Absolutely. When you have a million people in the US who have seen tremendous gains in their Bitcoin in your constituency saying don't attack this, you're hurting my pocketbook if you attack this. It's going to have a big impact on the message that the people who get elected to Congress bring to Congress.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And we have to, like I said, we have to see it's an open question whether or not we get a strong enough lobby for Bitcoin to make it unlikely for those state attacks to succeed. And I'm optimistic we've just seen a US senator, a lady in Wyoming elected to the U.S. Senate who's a strong proponent of Bitcoin. And I think that is going to accelerate in the next four years. I think if you look at the 2024 election, you're going to see a lot of people in Congress who are supportive of Bitcoin.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Say, no, this should be something else. The primary risk that I worry about, and we just talked about it, isn't a nation-state attack. And I think that is going to become a dominant issue that people worry about once Bitcoin surpasses gold's market capitalization. Because central banks always have gold in the side of their vision. Like, what's happening with gold? What's happening with gold? Gold's always been an indicator that they're doing something wrong. This is something that Greenspan actually talked about. He would set monetary policy based on gold. If gold's price went up, he would tighten. If gold's price went down, he would loosen, or maybe it's vice versa. I'm not sure. But once Bitcoin reaches gold's market capital, central banks are going to pay attention to it as a barometer of whether they're doing the right thing with their monetary policy. And if it gets out of control and Bitcoin starts overtaking the currencies of nation states, I think that's when you're going to see concerted nation state attacks.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Is this a payment technology or is it a savings technology? And there was kind of a schism in the community about what it was and the network split in two. One split was Bitcoin and another one was something called Bitcoin Cash, where a group of people who were involved in Bitcoin said, no, we think this is better as a payment technology. It's sort of a decentralized PayPal versus what Bitcoin is now, which is digital gold. And the market really overwhelmingly supported the digital gold narrative and that the other sort of split of Bitcoin has almost no market capitalization now relative to Bitcoin. And so that was a very, very important risk to be resolved in Bitcoin's history because there's no longer any contention about what Bitcoin is. It's very clear that this digital gold and there's no longer going to be any contentious forks like that where some chunk of the”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So in the beginning, I think the first and most important risk was protocol risk, which is this is a new technology, new monetary good that's built on cryptography, is the cryptography, is the computer science that it's based on even sound. And that was an open question, honestly, for the first three or four years of Bitcoin's existence. And people were banging on it trying to hack the network. There's never been a successful hack of Bitcoin, any meaningful hack. So it's by now, I think there's pretty much near unanimity amongst cryptographers that this is sound cryptography and it's not going to get broken. Another risk is competition, which is other cryptocurrencies, and we've covered that already in a way, I think. That's not something that concerns me. One of the big risks that we haven't really talked about happened in 2017, which is what is the dominant narrative for what Bitcoin is? In the early days, people were sort of”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Strong enough lobby to prevent the state attacking Bitcoin. And that's an open question whether this race will go one way or the other. I am hopeful and optimistic that Bitcoin is going to spread faster than the enemies of Bitcoin will have to recognize that it's a threat. There is a slight inkling already that Bitcoin could be a threat to the status quo and to the central banking system. There was an article in the Wall Street Journal a couple of years ago which said The real threat here is not the Bitcoin crashes, but that it actually keeps going up because then central banks lose control of monetary policy. And I was like, that's right on. That's a good thing. But it was that recognition that, yeah, if Bitcoin does become a dominant means of savings, it really restricts central banks' ability to inflate. Because what they're inflating is the pool of savings in a country. And if that pool of savings flees to Bitcoin, they don't have control of monetary policy anymore.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Would be to get people to disclose their private information about their savings. To me, this question comes down to there's a race and the race is whether Bitcoin gets a large enough group of motivated lobby of people who are willing to defend it and to lobby for it before nation states see it as a threat and start attacking it. And the example I like to use is Uber, which is Uber kind of goes into marketplaces and disrupts them. And it's almost immediately attacked by an entrenched interest, which is the taxi lobby. But because of Uber's speed, it goes in and it has drivers and it has users who become a natural lobby for it. And Bitcoin has the same thing. It's the people who have savings in Bitcoin who are a natural lobby. And what you need in the Western democracies is you need a large enough pool of savings distributed among the population for the population to be as”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“F bar is a US regulation that if you have a financial account outside of the US and you have any more than $10,000 in any number of financial accounts outside of the US, then you have to disclose all of your accounts, your account number, the address of the account, the bank name, all of this gets very, very intrusive and it's particularly scary, especially for anyone who has dual nationalities. They're not doing anything wrong, but they have like a bank account. I'm Australian. I have a bank account in Australia. I'm not doing anything wrong. I'm also an American. It's very intrusive. And it is a concern that this is a path that governments are going to go down, which is requiring people to disclose their holdings. This I see as one potential sort of small scale nation-state attack. The larger scale ones, just outright banning Bitcoin and saying we need to shut this down. It's bad for the nation. A small scale...”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, absolutely. I think the standards that are going to be applied to financial institutions when they're built on honest money is going to be much, much higher than it is now.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I didn't have quite as much of a problem, I think, as other people in the space about that. I think it's much harder to run a fractional system on Bitcoin because it's much easier to reclaim your Bitcoin or ask for a withdrawal. So bank runs when they happen will happen much more quickly. I think if you look at the 19th century, part of what allowed banks to get away with this is it takes some time. Like you have to figure out the bank may not have the gold. You have to run down to the bank. We live in a digital world and if you're running a fractional reserve and if there's any hint that you're doing something dodgy, those funds are coming out immediately. Your credibility is shot within an hour. And I think that's going to keep the fractionalizing well, well in check. So I'm not really concerned about it. I think there's always going to be this pressure of people wanting to take their coins off exchanges and out of these services to self-custody, which is going to keep this in check. I'm willing to say that I could be wrong about this, but it's not something I'm concerned about.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Right now, is the immaturity of their technology. They're coming into a space. They don't really understand how to custody and how to handle withdrawals and deposits and that kind of thing. So they're taking the most conservative approach, which is fine for them. But in the long term, they are going to need to serve their customers' interests or their customers are going to move elsewhere.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“A problem, it's definitely a problem. I'm not going to deny it. I think they'll be forced by pressure eventually, but I think it'll come down to education of the people who buy Bitcoins on PayPal. At first, the people who buy Bitcoins and Papal probably are not particularly savvy. They don't really understand what they're buying or what they're doing. But some of the large buyers on PayPal are going to eventually want to get a clue about what they own when it doubles or trickles in value. They're going to start paying attention. They'll go down the rabbit hole as well and understand this is something that gives me power to be self-sovereign over my savings. And I want that power. And I want you, PayPal, to let me have that. And eventually PayPal is going to have this natural lobby of people who are their users saying, give this to me or I'm going to sue you. And really they are custodying funds for other people. They don't own those funds. I see the fact that they're not letting people withdraw.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Think that's a really great point, and it reminds me of a very famous book in Wall Street called Reminiscences of a Stock Operator, where there's a famous old investor called Old Mr. Partridge in the early 20th century, and he gets a tip from someone who really loves giving and taking tips that a particular stock is going to drop, and old Mr. Partridge thanks him for the tip and smiles and goes on his way. The next time the person says, it dropped, did you sell and buy back your position? He said, absolutely not. He said, why? I gave you a tip and it worked. And he said, I would have lost my position. And I need my position when it's a bull market. That is what it comes down to. You're trading in and out. You're losing a position in something that is going to give you tremendous gains. Warren Buffett did not make his billions from trading in and out of the stocks. He saw something was valuable. He got a position in it and he held it for a very, very long time. And the world's most wealthy people all make their money.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“20% more than Bitcoin. Then you think about it, you're trading these crazy, volatile coins that may disappear and you're making 20% more than Bitcoin. That is absolutely insane. You should not be doing that”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“That is when you trade an altcoin successfully and you make profit, that profit is taxable. So you're already losing if you're successful 30 or 40 percent of your gains. And then if you adjust it for risk, the risk of these altcoins is much, much higher. It's very, very hard to profitably trade factoring in taxes and adjusting for risk, it's very hard to outperform Bitcoin. And my rule of thumb is if you're trading altcoins, you really need to think about it as I have to be doing 10x, 5 to 10x better than Bitcoin for this to be worth it because this is much riskier and when I take my profits I'm going to lose a big chunk of them to taxes. And I think probably of the people who are trading altcoins of minuscule minority at actually doing that, making 5 to 10x. Some of them may be making say, I don't know, 50% more than Bitcoin jumping in and out of positions. That 50% then drops to”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I really am concerned about people who start trading altcoins and I worked at a company in the 2016-17 bull market and I saw it was a company with a very young average employee age and I saw a lot of people get interested in Bitcoin and then start chasing returns in altcoins and I had seen this before and seen people lose all of their money trading altcoins. People didn't listen to me and I was really sad. I don't like seeing people get hurt coming into this space and seeing what I think is the greatest innovation to money and then losing all of their money because they get sidetracked down this dangerous dark path. I think when you think about trading altcoins, the thing that's most important to understand is that there is an opportunity cost to trading in them versus just holding Bitcoin. And if you're going to trade one of these altcoins, ultimately most people who are trading them take their profits and hold them in Bitcoin. The problem with doing”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“It'll take a lot of prodding and hearing other people doing well before they become interested. And some people won't ever become interested because they have an ideological problem with Bitcoin. People like Paul Krugman, they don't want to see Bitcoin succeed. So acceptance that maybe it is an important technology and a revolution to money is not something they can affect without attacking their own personal identity.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Hear about it from 10 or 15 of her friends saying, Wow, Bitcoin's really amazing before she thinks, hey, everyone around me is talking about this. And one of the important points about this psychological process is once Bitcoin gets into the head of an influencer, they have inordinate impact on the cohort of people around them. And one person I like to think of is Russell O'Cong, who's a NFL football player who got interested in Bitcoin a couple years ago. And he's constantly tweeting about it, constantly tweeting about why Bitcoin is important. And he's followed by a bunch of other NFL players who are like, oh, Russell's talking about, what is this thing? What is this thing? And then maybe they hear about it from someone else or one of their wife's friends say something about it. For different people, it's going to take a different number of touch points before they become interested. And that's something that I find particularly interesting that some people will pick it up really quickly and some people”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Example of someone who wrote to Satoshi and said, This can't work. And he's now one of the most prominent developers for Bitcoin. The next cycle was people who had that ideological affinity and early investors, libertarians and people who saw the freedom potential of Bitcoin. And then the next cycle was sort of early adopters and early hedge funds and things of that nature. But the observation I make about this is that some people need to hear about something like Bitcoin multiple times before they pay attention. For me, it was twice and it was lucky for me it was twice. I'm usually pretty slow person with these kind of things, but it was two people I really trusted and they were planting ideas in fertile ground with me. I was a libertarian, I am a libertarian, and so I saw the potential of something like this. But someone like my mom, she's probably going to have to”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“What I call it is the number of touch points, the number of times that you had to have heard about Bitcoin before you become curious about it or interested enough that you're willing to allocate some savings to it. And I think it's part of the psychological process for an individual to get involved and to invest. And we know that Bitcoin is being monetized in a series of cycles. And what I think I've observed is that each cycle is kind of defined by a cohort of people who are reachable in that cycle. So the first cycle was the computer scientists and the cryptographers who really understood Bitcoin's significance even in the very earliest days because they'd been thinking about this problem before for decades. But even amongst that cohort of people, there were some people who were skeptical of Bitcoin and they had to hear about it multiple times before they were like, okay, actually this is important, this is significant, it doesn't have any holes I'm willing to invest. And Greg Maxwell is a funny.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Even before the value of those reserves increased, the value could stop just because the stock market thought it was a good bet. And eventually you could imagine that if Bitcoin goes through bull market as significant as the last one in terms of the multiple that's assigned to it, his company essentially becomes a Bitcoin holding company, their business, whatever their business is, becomes irrelevant and they become a stock ticker for Bitcoin. They could change their stock ticket of BTC or something like that. And I think other companies, typically it's the smaller companies which are nimble enough, flexible enough, and don't have as much red tape who can make these quick decisions. And in a subsequent cycle, once this gets to the level where nation states will be looking at Bitcoin, the same thing applies. It'll be the small nations which are nimble.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Be holding cash if I'm not going to hold cash, what am I going to hold? Am I going to hold gold? Am I going to hold other stocks? Bonds? What do I do here? And he came across Bitcoin and he really went down the rabbit hole on this and he decided that the best thing to do for his company was to take a large stake in Bitcoin, that their reserves, the company reserves would be in Bitcoin. And he made this decision, I don't know, maybe a year ago and it took some time for his company to execute on this. He had to win over the executives in his company. And they put on a massive position. They bought, I think, at the time $500 million worth of Bitcoin all of their treasury reserves. And those reserves have since doubled in value. So it's another opportunity for companies out there if they have companies like Google and Apple, which have massive reserves. If they want to allocate some of them to Bitcoin, that's going to really move the price a lot as well.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“For the reminder, so Michael Saylor is the CEO of a public company called MicroStrategy, which has been around actually for quite a while, two decades, and the company itself isn't particularly interesting. They do data analytics, and they have their niche market, and they're doing well, they're still around, but he has this history of making unconventional bets. He already had kind of an understanding or affinity of the importance of digital scarcity somewhere in his career he had bought a domain name that, you know, for $50 or something like that, and he sold it, eventually sold it for $30 million. And so he had some understanding that you can get value from digital scarcity in the form of domain names. So he was already somewhat primed to understand Bitcoin, and his company is sitting on this large pile of cash, and he's thinking, well, this cash is being inflated away by the Federal Reserve, which is printing record amounts of money.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Is strong hands, you're seeing people come in and say, I believe in this thing now, and I want to get a position and I'm patient. I'm not a retail investor, I'm a fund or someone like Michael Saylor who comes in and sees this and thinks, this is the best form of savings that's ever been invented. I'm taking a position. I'm not looking for 20% out of this. I'm looking for like 100x before I even consider selling this thing”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, coins moving on to exchanges is kind of a measure of weak hands. I don't want to use that disparagingly. I want to use it more technically as people who own Bitcoins who have seen massive appreciation those Bitcoins. They're inherently weak hands because you imagine someone who is in college or was mining Bitcoin in the 2010, for example, and they have a few thousand Bitcoin, they've seen their net worth go from zero to potentially millions of dollars. Life-changing money for them. And it's very, very hard to resist the temptation of selling and improving their lifestyle. And so I think what you saw in 2017 when the supply of Bitcoin was really much more concentrated in the hands of a few thousand people is you saw a lot of those people think I need to cash in on this. I need my house or I need my Lambo or whatever it is that they needed. Whereas what you're seeing in this right”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Points available to be bought. So if you think about Microsoft Sailor picking up $38,000 Bitcoins, I don't think any of the big buyers who are, you know, the sharks who are in the water have a chance to pick up anywhere near that without massive slippage in the market, which is pushing the price much higher. The window of opportunity to accumulate has essentially gone and we are now getting close to the parabolic phase of the ore market where when you make a big purchase of Bitcoin, you're going to dramatically move the price up.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Absolutely. I absolutely do. I think that is the most important, if not the only factor that's involved here, which is that when you get a halving, the supply of coins that are being that come to market, the miners are the ones who are the natural sellers of Bitcoin. They have to sell it because they're marginal producers and they have electricity costs and they have to pay for those electricity costs. When they get Bitcoin, they have to sell it. When you get to the halving, they're selling power is halved. But the demand stays about constant and the supply of Bitcoins that come onto the market are slowly siphoned off. The number of tradable Bitcoins are siphoned off in the hands of people who have strong conviction. And once that supply of tradable Bitcoins is siphoned off, the price can only explode higher. And I think that's what's happening right now. You're having accumulation of the tradable Bitcoins really dropping the supply a lot. I think below 20,000, there's no more than a few tens of thousands of Bitcoin.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I think it's one of the most interesting things I've seen as an economist, as an Austrian economist, we sort of believe that price levels are determined by human action and there's no inherent statistical pattern. Everything could change based on how people act and react in the current moment. But what we see here is it looks like it's part of the social dynamic of monetization that it happens in this kind of S curve in a way where you have these early people who come in and who have conviction that this is important and it starts, the price starts moving up slowly and then people get interested in it just because the price is moving up and then eventually you get this feeding frenzy and crescendo where the price explodes and then you have the last person in who gets in just because they're trying to make a quick profit and you run out of those people in a given cycle and it crashes and then it happens again. And the thing I find most fascinating is if you look at a chart”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Three that is okay, this is this could potentially disrupt gold. It's not just a technology limited to people who are interested in Silicon Valley. This looks like it's going to disrupt gold. So I think we're in a kind of transition period and Bitcoin's market capitalization is a reflection of how that transition is happening, how quickly that transition is happening.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Vancouver, it's a place which is kind of welcoming to Chinese capital. And you have all these houses in Vancouver which are empty being used as a store of value. If you have something like Bitcoin serves this role and is far superior to owning a house in Vancouver because you can go anywhere on earth with all your money in your head, you just need to remember your seed words. That's going to drain the monetary premium out of things like real estate in Vancouver. It's going to drain it out of rare art. You're not going to use rare art as your store of value unless you really value it for the artistic purpose. But for the store of value role, that premium is going to be drained out. And there are a lot of different goods like that which have a store of value premium and they're all going to be drained into Bitcoin. So its price level could get really, really high. If you believe that framework, I think we're currently somewhere the dominant narrative is somewhere between two and three. We probably dominate narratives too, but it's moving towards...”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Dominant means of savings used by nation states around the world and large savers around the world. It's the final means of settlement between banks, large bank, banks and financial institutions around the world. And everyone will price everything in Bitcoin. You'll go to the local grocery store and the loaf of bread will be 100 satoshis. If you were to believe this valuation framework you would assign a price target to Bitcoin somewhere, I think between 10 million and more than that up to maybe 100 million. Because if it becomes the world's reserve currency, I think it's going to drain monetary premiums out of all other goods that are being used as a store of value. I'll give you one example. You think about real estate in Vancouver, BC in Canada, there are a lot of people in China who have some level of concern about their government and they want to have savings outside of China. And so they buy houses in”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I think you would assign a price target to Bitcoin somewhere between $10,000 and $100,000. It's interesting, but it's not, it's never going to be geopolitically significant. The third valuation framework is that this is a direct competitor to gold. It is doing the same thing that gold does, but in a much, much better way. And the market is eventually going to recognize that the properties, monetary properties that make gold good for savings make Bitcoin great for savings. And if you believe this valuation framework and you look at the market capitalization of gold, then you would probably assign a price target on Bitcoin somewhere between $300,000, which is kind of comparable bit lower than gold to about a million, which is, okay, this is gold, but it's kind of better than gold. And the final evaluation framework, I think, is that this is going to be the world's reserve currency eventually. And it's going to take the role that gold had in the 19th century, which is it is”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Bitcoin. That's kind of the Peter Schiff, Paul Krugman, Nuriel Rubini valuation framework. If you've never been able to detach themselves from that initial skepticism turning into curiosity as it does for people who are a little more open-minded. The second valuation framework is that, hey, yeah, this is cool. This is a new technology. We haven't seen anything like this, but it really has limited interest. It's for people who are ideologically minded like libertarians or people who are very technologically savvy. They want to have some savings in a digital good, but it's not for the average person. There are still a lot of savings held by those kind of people. Like you look at Silicon Valley, there's a tremendous amount of savings in Silicon Valley. If you would have believed this valuation framework, you'd also believe that Bitcoin is going to be inherently volatile because it's still a small base of users. And as funds flow in and out, it's going to go up and down in price quite a lot. If you believe this valuation framework,”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I've been interested in Bitcoin a long time, as you mentioned at the start, but it was mostly from interest as an economist, which is how does this have a price at all? How does it have a market price? And I recently started thinking a little bit more about valuation frameworks and how institutional investors might come and look at this thing. And I wanted to think about what are the valuation frameworks that are out there and be kind of agnostic to which one's correct. Just descriptively say what they are. And I came up with four main valuation frameworks that I've observed over the last nine or ten years looking at Bitcoin. The first one is the most obvious one that everyone comes up with, which is this is a tulip mania. This is a crazy bubble. It has no value, has no comparative advantage to any monetary good that exists or to the current financial system. And if you were to believe this valuation framework, you'd assign a long-term target of zero.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Dahli, as well. He's got a position, but I think there's a critical turning point you can see in him that he's curious. And that's a very important point when someone goes from being skeptical to curious and you are seeing that in a lot of prominent fund managers”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Influential investors are getting interested even before we make a new all-time high, as you say, which I think is critical because we've seen these cycles play out before. They eerily look like a fractal pattern of increasing magnitude. So we've seen this exact pattern happen in 2011 to 2013 and from 2016 to the end of 2017. This exact pattern, you can almost superimpose them and they look very, very eerily similar. So the point I'm trying to make is I don't believe the real frenzy of interest begins until we make an all-time high because once when we do make an all new all-time high, that's when the media gets interested. And that's when everyone starts to talk about it and people, these major funds are like, well, I might look bad if I'm the last one on this ship. So maybe I should start looking into this thing. And that's really accelerated by media interest.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yes, and I am honestly personally surprised that it's happening as quickly as it is. I thought this cycle might take longer to play out, but I'm getting inbound requests from funds managing money to speak to their senior partners to give them an explanation of Bitcoin because there's internal interest. I thought that this cycle might take a couple more years. You know, there are models out there which say we're moving exactly according to schedule. I've always been cautious about those kind of things because I am extremely bullish about Bitcoin in the long term. I sort of look at a time horizon for what's the world going to look like for my posterity and my kids, my grandkids. Over that kind of time horizon, I'm very, very bullish. But I don't make strong predictions in the short term because I honestly don't know. But I am surprised how quickly things are moving and how quickly large and”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Well, I have to confess, Preston, that battle, that fight is happening in my own heart. I'm a reformed gold bug myself. And I do own goals, and it's a really nice thing to hold. And perhaps it's part of my Indian heritage that it's in my DNA that I love gold. But I definitely recognize Bitcoin's superiority. And I think one thing that's interesting.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Valuable. No one's using it to buy anything. Or why Bitcoin is valuable? Very few people are using Bitcoin to buy anything right now because they don't understand savings.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Technology that has ever been invented. So yeah, this is a problem that's existed since the beginning of Bitcoin where people really focused on the payment and minimum of exchange role of money and completely forgot the savings aspect. And I sort of link that to a failure of economics in the last century where the economic profession really got in bed with governments and said what governments wanted, which is yeah, print away, it's good for everyone. No, it's not. It's terrible. It's terrible for savers. And so economists that modern economic establishment has focused on the medium of exchange role and they've completely ignored and debased the savings aspect of money, which is why modern economists always poo-poo gold. And if you ask them why is gold still so valuable, they don't have an explanation. They don't have a coherent explanation for why gold.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, I think what you say is absolutely correct. And I think this sort of stems from a modern misunderstanding of money, which is people primarily associate money with payments and transactional use, the medium of exchange role of money. Money also has historically a store of value use. People keep their savings in money. And when you think of payments, yeah, there is some utility to be able to roll back transaction if someone's scamming you. But with savings, you really don't want people to roll back your savings. You don't want people to roll back your savings through inflation or through confiscation, which are the primary ways that nation states have rolled back savings from people. The idea that you can have savings that cannot be debased and that you can transport without anyone's permission is the pillar of Bitcoin's value proposition. It's a great, the best, in my opinion, savings.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Was invented with this brilliant insight from Satoshi Nakamoto, and then he disappeared. And it's very likely we are never going to know who Satoshi Nokamoto is. He left us with this gift of a new monetary good that can change the world, and then he left. Having a founder or a group of founders around is a pressure point. It's a point at which states can come along and say, we don't like how this is going, can you change it a little bit, or could you add in a backdoor that reverses certain payments that we don't like? And perhaps in some cases, those kind of illicit payments are bad, but the power that you give a government is a very, very slippery slope. And I think Ethereum is already well down that slippery slope, and there's no way to get back from it.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Make it so this never happened. That's not something you can do in a truly decentralized system. And if you want to aspire to be a monetary good, you really want to aspire to be something like gold. You imagine that if someone stole some gold from a bank, there is no central authority that can say, we're going to wind back that theft no longer happened. Because if that was the case, you would no longer trust gold as something that if you had it, you really had it. There would be someone else who could take it from you. That's the problem I see with Ethereum. I think it's sort of theater that it's decentralized. I think it has a huge problem and it has a founder. That's another issue. Vitalik Buterin has enormous influence whether he says he has no influence or not. He clearly has enormous influence in shaping priorities for Ethereum where development happens, decisions that are made in that community. That's another thing I think Bitcoin excels at is it had this immaculate conception.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“It's a combination of factors, certainly the decentralization, the balance in which different powers within the Bitcoin ecosystem sort of trade off against each other. And no one really controls Bitcoin. There isn't this same sense that you have in other cryptocurrencies. If we step back, the vast majority of cryptocurrencies could be turned off by one or two people. They are not decentralized at all. They're really no different to someone running a computer on Amazon web services that issues tokens. It's kind of decentralization theater. It's not real. I think if you look at the second largest cryptocurrency Ethereum, its credibility for whether it's decentralized or not has been completely shattered from the beginning. They had a problem with one of the contracts that was issued on Ethereum, which allowed someone to hack the contract and steal hundreds of millions of dollars. And they said, hey, let's just roll this back.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Bitcoin excels across all of these attributes. And really, I think the most important of these attributes is scarcity. Is it scarce or is it not scarce? Something that's abundant doesn't make good money. So sand is not good money, for instance. You can find sand at a beach, a super abundant commodity. And this has been known for hundreds of years as well. Good money is always scarce. Really what matters is...”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I think because Bitcoin is a new form of money, its superiority is not related to its technological attributes. That's one of the big mistakes that people make when they come into the space is that, hey, there's this new one out there and it has these new bells and whistles. As a monetary good, Bitcoin competes on its monetary attributes and it competes against other monetary goods like gold and fiat currencies on the attributes that we know make for good money and we've known for thousands of years since the days of Aristotle scarcity, fungibility, portability, verifiability.”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Something that's scarce and digital, which is a profound, profound innovation. And then other people came along and they said, hey, he solved this problem. I can just copy his solution. But copying doesn't give you the same thing. I think that's a really important idea. All copying does, in my mind, is illustrate what the original is, where the real innovation is. And I think of it kind of like the Mona Lisa. There's tens of thousands of copies of the Mona Lisa, but all of these copies just illustrate that there's only one real Mona Lisa or cars, for instance. You can copy a Ferrari and make a cheap facsimile of a Ferrari, but there is only one brand Ferrari. Your cheap facsimile isn't a Ferrari and people are not going to treat it like Ferrari. And Bitcoin is the Ferrari of cryptocurrencies. There's only one, and I think this is a winner-take-all market. You don't see that right now because it's going to take time for the market to figure that out. But I think in time, the market will figure it out. And I think it'll...”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Great question, and it's a very natural issue if you come in and you're not familiar with the space. You haven't really thought about network effects, you haven't thought about winner-take-all technologies, you haven't thought about these issues, you come in and you're like, wow, I could buy the cheap one and the cheap one is, I don't know, name one of the altcoins that are out there. I think with Bitcoin, I sort of see it as this unique innovation or revolution to money. it's something that happens once every thousand years like the minting of coins or the development of promissory notes or something like that. And when it came about, Satoshi solved the critical problem in computer science, which is to invent digital scarcity before Satoshi's invention, we all sort of understand the idea of when you put a picture online, it's really easy to copy when you write words online, it's easy to copy. If someone writes a book, it can get pirated easily or music can be pirated. The Satoshi figure this out that you can create”
2020-12-02 · We Study Billionaires · BTC002: The Case For Bitcoin w/ Vijay Boyapati (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT