On todays episode of On The Margin Jeff booth Entrepreneur, Author of The Price of Tomorrow & General Partner at Ego Death Capital joins the show for a discussion on the exponential growth of A.I.
With his background in technology, Jeff walks through the threat of A.I within our current economic system and how Bitcoin could be a solution to “the inflation paradox”. To hear all this & more, you’ll have to tune in!
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Timestamps:
00:00 Introduction
01:17 The $400 Trillion Debt Problem
07:52 The S&P 495 vs A.I
10:43 Permissionless II Ad
11:31 The Exponential Growth Of A.I
20:47 The Push & Pull Between Calm & Crisis
24:35 The Overton Window Of Money Printing
30:21 Research Ad
31:11 The Future is Already Here, it’s Just Not Very Evenly Distributed
39:10 The Bitcoin Thesis
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Disclaimer: Nothing discussed on On The Margin should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets….(read more)
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Bitcoin is often hailed as a solution to many problems that traditional financial systems face today, one of which is the “inflation paradox”. This paradox refers to a situation where monetary policy is designed to stimulate the economy by increasing the money supply, which in turn fuels inflation, leading to higher prices and eroding the value of money over time.
According to Jeff Booth, the best-selling author of “The Price of Tomorrow”, this paradox is a result of the current financial system’s excessive focus on growth and debt. Booth argues that policymakers around the world have been pursuing economic growth through inflation, which has led to a cycle of debt accumulation and increasing inequality. He believes that Bitcoin offers a way out of this vicious cycle by providing a deflationary alternative to fiat currencies.
The Bitcoin solution to the inflation paradox lies in its unique monetary policy. Unlike government-backed currencies, which are subject to the whims of central banks and political uncertainty, Bitcoin has a fixed supply of 21 million coins. This means that no government or organization can create more Bitcoins beyond this limit, ensuring a finite and predictable supply.
This fixed supply creates a built-in deflationary pressure on Bitcoin. As demand for the currency increases, its price goes up, incentivizing people to hold on to it rather than spend it. This creates a virtuous cycle where Bitcoin’s value increases over time, rather than being eroded by inflation.
Moreover, Bitcoin’s decentralization adds an additional layer of security against inflation. In contrast to government currencies, which can be manipulated by central authorities, Bitcoin’s distributed ledger is maintained by a global network of computers, making it virtually tamper-proof.
Booth argues that this deflationary model creates a new paradigm for financial growth. Instead of relying on debt-fueled economic growth, the deflationary nature of Bitcoin incentivizes productivity by rewarding savers and investors. By holding onto Bitcoin, individuals can benefit from its appreciation over time, providing a secure store of value for their savings.
In conclusion, Bitcoin’s solution to the inflation paradox lies in its fixed supply and decentralized nature. By offering a deflationary alternative to fiat currencies, Bitcoin creates a new paradigm for financial growth that rewards savers and investors, incentivizes productivity, and prevents the cycle of debt accumulation and rising inequality. With its innovative monetary policy and decentralized network, Bitcoin may just be the answer to the many challenges that traditional financial systems face today.
He scares me! Anyone who says things are just an illusion make me pause.
So what are the things coming out on top of bitcoin? We all want to know. Doesn’t seem like lightning is getting mass adoption anytime soon
Socialism isn't on the rise in Spain. It's on its way out.
Why are you advertising sh*tcoin conferences?
Ridiculous, if you owe the world $400 Trillian, you own the world
He's pretty right on. Technological revolution is deflationary. But, Monero is the real crypto.
Good foundational points on error correction. You have to remember, it also applies to BTC. I'm a fan and owner of BTC but, when I hear "it's the ONLY way for this or that" it's frustrating. Those statements are VOID of "error correction". I have BTC and some others of which I believe in as much or more (names I won't mention) apply the logical path as "another" option implementing concepts birthed from "error correction". BTC is the first and best start, but it doesn't get a pass on the laws of physics.
How do you replace the dollar with something else that's priced in dollars?
Thank you for this wonderful video! I have incurred so much losses trading on my own….I trade well on demo but I think the real market is manipulated…. Can anyone help me out or at least tell me what I'm doing wrong?
EXELLENT interview! This is why Blockworks is eating every other competing channel's lunch!
You can tell the podcaster guy never stopped and asked himself why the goverenment gets to just randomly destroy 2% of your purchasing power every year.
Great interview, Mike.
Lets say i send bitcoin to someone in north korea, but then what are they do with it?
Guy does not understand how much US dollars exists on whole globe and…banks will not let bitcoin to take its place. Ever. If it would, 1 btc would have so high value, it would be funny to watch. We would talk about billions of dollars per bitcoin
I appreciate the basis of his view of the runaway momentum of printed money but his logic gets circular when he tries to explain everything is a consequence of money printing.
Loved the interview, but i hold some reservation on BTC, while totally in agreement with Jeff's on his view on the insolvency of debt and the unsustainability of the debt based system.
In the argument i only see reference to the dropping cost of production on the labor side ( manuall and intelectual ) , it never makes reference for the cost of resources . ( with resources i eman , hard resources such as matterials and the environment ) . its proven that inovation make prioces fall but its not the only input and you can only inovate untill a point, after that the marginal decrease in price of inovation drops aswell and the main component of price will not be the labor but the resources themselves
Inflation is not a bad thing , high inflation and/or volatile is the problem , is even worst if it is presistent, but deflation is also dangerous and underirable.
its not a simple problem to solve , we have to change the way we interact and echanche resources ( in the broad sence of teh word ).
If things are super cheap and everybody can buy "everything" the planet will just catch on fire. So things will never get cheap if we take into account all the externalitties that ones consuption creates and obligate companies to comply.
Another question if bitcoin keeps going up why should i ever sell ? i would just ask for credit and collaterize it with BTC. Never pay taxes and never selling my evergrowing asset.
Even worst i can ( extreme exmaple ) just ask for currency , collaterize ir with BTC and buy some more. Negative point is that BTC dosent pay dividends so you need to somehw guarantee some cashflows to pay your debt obligations.
i love the idea of a peoples currency, but if its reaally play out as people are saying we will have plenty of probelms to solve.
Bad actor, experts and wealthy persons will benefic way more than the average people. concentrating even more the wealth.
Im not defending the present sysrtem , just pointing out that narrative have some huge problems
AI = NFT like hype, lot of people talk about it and don’t know even the most basic architecture and glorify it