This week Dan gets into:

• Flurry of activity around ETF applications
• Google updates ad policy to allow Bitcoin ETF ads in January
• Conviction of longterm holders continues to make new all-time highs.  Nobody is selling
• Accounting rule change unlocks companies to finally start acquiring Bitcoin
• El Salvador writing the playbook for Bitcoin adoption for entire countries

Trent and Dan wrap up the 10 part series with a hopeful outlook for the world.  

Episode #10: Fix The Money, Fix The World

• Hey we made it to #10!
• What have we learned from doing pods.  Gratitude for friendship and actually doing them
• Pods are their own one way ratchets.  Just want to do more of them
• Bitcoin is endlessly interesting
• Summation of the 10 part journey: in the end you get to the overwhelming conclusion that in the fiat system the money is broken and causes so many of the worlds problems.
• To fix those problems you need to fix the money
  • This is our one and only chance to separate money from the hands of government
• Fiat world leads to a “deminishing portfolio of enthusiasms”
• In the fiat world you have to earn your money twice.  With Bitcoin, your money just gets more and more valuable over time, not less.  Gives people time back, time to spend with their families and think long term and build things of lasting value
• Discussion of Charlie Munger’s death and his thoughts on Bitcoin.  Show me the incentives and I’ll show you the outcome
• In the end, Bitcoin is hope
  • A better money for a better world
• Today’s song: Movin’ On Up by Primal Scream
  • The live version absolutely slaps

Today Dan breaks down:

• Price is up!   Yearly high
• Wisdom of dollar cost average
• Bitcoin now bigger than Tesla, Facebook and Berkshire Hathaway
• Only 6 companies in world are bigger - for now.  We are still are in the era when individual companies are still bigger than Bitcoin
• One day we will look back and laugh
• Jamie Dimon CEO of JPMorgan testimony at congress - where to even begin
• Good thing a good, upstanding bank like JPMorgan has never been involved in any illicit activities.
• Oh wait, turns out they have been involved in quite a few and paid over $39 BILLION in fines since 2000
  • view list of all of their abuses and fines
• This is why we Bitcoin

Dan and Trent discuss the nature of digital networks and human nature.

Episode #9: Network Effects

• Metcalf’s Law: the value of digital networks equal to the square of number of users.  It is an exponential function
• Technology adoption curves.  Start slow then once they gain critical mass they grow rapidly.  Nature of S-curves
• Gradually, then suddenly.   Perfectly describe network effects.  Thankfully we are in the gradually phase of Bitcoin adoption
• Pace of technology adoption has accelerated in the digital age
• Crossing the chasm.  Moving beyond the initial 10% from early innovators to mass adoption.  Social layer.  Humans have a herd mentality
• Bitcoin is money and money is simply a shared idea that something has value
• Bitcoin is the ultimate network effect.  We are only at ~1% real adoption globally
• And unlike all other technologies, you received no economic benefit by being an early adopter. 
  • But Bitcoin incentives early adoption with massive returns to the people who join sooner that others
  • Its pure economic incentives
• When Bitcoin becomes used more and more as a medium of exchange the network effects go parabolic
• Bitcoin being purely digital and built on backs of internet, cellular and social media can scale infinitely to the world
• Today’s song: Crossing the Rubicon by Bob Dylan

Dan and Trent do a judo move on this tired narrative. 

Episode #8: Bitcoin and Energy

• In person!
• Major issue for Bitcoin: the criticism it uses too much energy.  One of the very first things people hear about Bitcoin
• Bitcoin is the honey badger: it gives no fucks
• We are going to flip this narrative on its head.  Topsy Turvey.  Bitcoin uses a lot of energy and that is a very good thing for the world.
• Energy usage directly related to human flourishing and always has
• Why does Bitcoin use a lot of energy?  Proof of work
  • You cannot get something from nothing
  • Bitcoin is antidote to Fiat system
  • Proof of work imposes an unforgeable costliness on the production of Bitcoin.  You cannot fake it.
• Why is this a good thing?
  • Bitcoin incentives energy production, in particular renewables
  • Renewable energy is intermittent, Bitcoin is the best buyer the renewable industry has ever seen
  • Bitcoin mining is location-agnostic, it seeks out cheap and excess energy globally
  • Removing methane from atmosphere (which is 80 times worse than CO2)
• Song of day: Beginning To See The Light by The Velvet Underground

This week Dan covers:

• ETF updates!   Lots going on, its all positive.  January 10 remains target date.
• Hash rate at new all-time high.  Confidence in Bitcoin from the people who know most has never been higher.
  • Going parabolic
• Halving update: we are 90% through current halving cycle
  • Next halving in April
• Passing of Charlie Munger, absolute legend
  • Show me the incentives, I'll show you the outcome

Quick hit today:

• A new hard-money president in Argentina
• Binance settlement 
• The kids are all right
• Gratitude 

Wow.

Huge day for Argentina and the world.

Dan and Trent break down the importance of a long-term mindset in Bitcoin.

• Bitcoin price can be volatile over the short term, but over time the volatility is to the upside
• In past 13 years, Bitcoin has been by far the best performing asset class in 10 of the years, and in the other 3 it was the worst 
  • See chart
• In previous cycles the halving has kicked off a massive bull run.  Prices goes up a lot, but then corrects - each time to a much higher low.  The floor keeps rising
• Halving cycles.  Price at halving keep rising
  • See chart
• Big majority of Bitcoin held by strong hands with no intention of selling.  The number of liquid coins is very low.   This also drives large price moves
• It all gets back to time preference and long term thinking
• So many people want get rich quick, to take a short cut, not a long term commitment
• Bitcoin is proof of work - and what you put into learning Bitcoin you will get so much more in return
• Building anything of lasting value takes time and work - always has been
• Today’s song: Good Times Bad Times by Led Zeppelin

Dan and Greg get into the Bitcoin Halvings, the true genius at the heart of Bitcoin's supply schedule.

• The next Halving is only 5 months away!  
• So few people actually understand the Halvings and how they work - and their implications for Bitcoin price and adoption
• Greg talking to friends about Halvings - the responses are enlightening
  • Conclusion: we are so early
• How does the Halving actually work?
  • Bitcoin come into the world every day through mining
  • Every 10 minutes on average, a minor is awarded the block reward
  • That block reward gets cut in half every 4 years (210,000 blocks)
  • Started at 50,  then 25, then 12.5 and the current block reward is 6.25 BTC awarded to a winning miner, ever 10 minutes on average
  • See chart of Halvings
  • The reduction in daily supply creates a supply shock every 4 years, which in turn leads to big increase in Bitcoin price
• Genius of design choice.  Heavily skewed to early days
• 93% of Bitcoin already mined and in the word, the remaining 7% will be mined over the next 120 years
• Conviction of Bitcoin holders at all-time highs - see chart   
• The 3 Halvings so far have led to massive bull runs - see chart
• Nobody knows if these cycles will continue, but we are not betting against them
• Zoom out.  Given dynamics of Halvings, price goes up over time.  Day to day price movements are boing and meaningless