233. Deflation with Jeff Booth
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- Опубліковано 15 вер 2024
- Jeff Booth, author of The Price of Tomorrow, joins us to discuss deflation and economics, as well as the Fedi protocol.
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Saifedean’s first book, The Bitcoin Standard:
saifedean.com/t...
Saifedean’s second book, The Fiat Standard:
saifedean.com/t...
Saifedean’s third book, Principles of Economics:
saifedean.com/poe
Enjoyed this episode? Join Saifedean's online learning platform to take part in weekly podcast seminars, access Saifedean’s four online economics courses, and read his writing, including his new book, Principles of Economics! Find out more on Saifedean.com!
Thank you Saifedean for pushing back on Booth’s arguments. I appreciate that you maintain intellectual integrity in your interviews unlike most long-form ‘interviewers’ that act the sycophant for their guest.
Booth must be really over the target then👌💪. Thanks parasite you just made that abundantly clear And yes, these UA-cam channels are gatekeepers.
@@Michaelmas68 are you okay?
Best answer 😂@@Handle35667
Jeff is the GOAT
For sure❤
+1
Scam man
I probably listened to 50 hours + of Jeff Booth and I can listen to another 150 and still love hearing the same message!
For me I still understand new things even after a hundred times and still need to learn more 😅
Saifedean and Jeff Booth! This will be epic 😃
when inflation met with deflation😯
@@geoms6263lol
Jeff Booth is GOAT, you should have him on a regular basis
What a joy, two of the most confident voices in the bitcoin space bouncing off each others thoughts. Blissful introduction to the bitcoin standard.
I suggest reading Hijacking Bitcoin... may open your eyes :)
Wow! I could see Safidean struggle with these concepts which was amazing to see. I think as he noodles these more, the 💡 will go off.
Finally, a great guest
I already know it’s going to be good. If it stays decentralized and secure, failure is unlikely.
BTC is not decentralized, though. That is the biggest lie ever told. Core/Blockstream has full control over the protocol. It has long been captured.
I highly recommend reading Hijacking Bitcoin for an alternative perspective (though, in reality, it is a full compilation of the history fully cited throughout).
Am I the only one who is completely mind blown by this conversation?
Interesting to see Jeff compare the convenience of using the centralized X versus using decentralized Nostr and how we continually opt in to the centralized option. 💡 moment for me.
I just started watching, but I'm so happy to see someone talking about an aspect of this I have been thinking about a lot for the last couple months. I think my explanation of what is going on and the siphoning of value out of consumers pockets really simplifies things and makes it easily understandable. I separate inflation/deflation into 3 concepts:
1)Monetary inflation: The amount of extra money added to the economy. This has averaged around 10% per year since the creation of the fed.
2)Price inflation: The amount prices increase per year. This has averaged around 3% since the creation of the fed. This is also the seen value stolen from consumers via monetary inflation.
Why do these numbers not converge? You would think over time the amount of extra money would equilibrate to a relatively equal increase in prices. The answer is 3
3)Market deflation: This is the rate at which efficiency increases, and competitive pressure lowers prices and improves standards of living. It is also the difference between monetary inflation and price inflation...7%. This is the hidden amount of value governments are stealing from consumers, year after year.
Might be interested in reading Hijacking Bitcoin...
The inflation numbers are easily manipulated through changing the products in the basket of goods for example.
Broadly, inflation ressembles much more the expansion of the monetary supply
I agree. Over the past decade and a half we’ve seen unprecedented money printing through QE etc, but Keynesian acolytes would argue we did not see disproportionate price inflation over this time period so therefore money printing does not cause inflation. This of course obfuscates the fact that the technological advancements and increases in productivity should have led to prices coming down. So they can point to a 2% inflation rate and say it’s all good when in reality we should have been experiencing significant price deflation, and thus we’ve been robbed of the benefits of those productivity gains. (And then covid stimulus blew all previous forms of stimulus out of the water and the price inflation did start to show up.)
That makes much sense to me, but how do you fit into that equation the fact that world population has increased by 3X over the last century? Don't you think money supply must provide for that increase? Thanks
@@manuelbernal7807 a structure of adding money supply towards higher population is theoretically sustainable, but in practice a government will always print more than the growth of its population. Mike Maloney shows that this has repeated over and over through the centuries, even going back to the romans, in his series The hidden secrets of money.
You actually don't need more supply, you can simply make the current amount more divisible instead at certain price points, or demand, which Bitcoin has the capability of doing through its programmable decentralised consensus mecanism.
THANKS SAIF I REALLY APPRECIATE YOU AND JEFF ❤
You two saved my arse!! Thanks for everything you're doing mate, really appreciated!!
Great conversation with two of my favorite people.
Comparing this to our German Bitcoin UA-camrs watching this talk feels like living in the future. We need nore people like Jeff and Saif!
Thank you for your videos... BTC price has been volatile lately, but I believe it's crucial to focus on educating newcomers on strategies beyond simply holding through market dips. One advantage of this space is the ability to buy during dips and actively trade, generating profits while awaiting inevitable price increases. Many people lack a deep understanding of how this market operates. Charts cannot predict asset movements with certainty; prices fluctuate up and down. Despite this volatility, the market remains profitable.... I have managed to grow a nest egg of around 100k to a decent 732k in the space of a few months... I'm especially grateful to Harry’s Dent,, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.
He's mostly on Telegrams, using the user name
HarrysDent
Over the years, I've been a part of numerous trading programs, sifting through a barrage of information. Yet, nothing has come close to the sheer clarity, depth, and precision of Harry’s Dent insights. It's akin to finding a diamond in a coal mine.
Profitable trading requires experience, a solid strategy,and preparation, which we lack, understand buy/sell ratios, identifying market leaders, and diversifying are key to reducing risk.
In a field as rapidly evolving as cryptocurrency, staying updated is crucial. continual research and adaptation to the latest market changes have been instrumental in helping me make informed decisions.
Now that is a desert after big fat steak and 6 eggs.
I agree, Jeff is the GOAT
The 19th century was 1801-1900 not 1901-2000 that was the 20th century Saifedean. We are now in the 21st century.
Jeff is right about the coming of the Bitcoin-Dollar system to replace the petrodollar. US interests are promoting the use of US-treasury-backed Tether and other stablecoins across the global south in order to create artificial demand for US treasuries and continue propping up the dollar and exporting dollar inflation to the developing world. Whether this mechanism captures Bitcoin itself is yet to be seen. I think it will likely benefit Bitcoin holders, but it will serve to undermine the benefits that Bitcoin could have for the world at large
Thanks!
I couldnt agree any more with you two, I'm all in quite literally, my only question is what is the major flaw going to be within bitcoin? Everything has one and gets manipulated eventually it seems, where is bitcoins weakness? Coming from a maxi please best believe, asking as humbly as possible.
Kaspa is the solution of scaling that bitcoin can never do. It solves the trilemma!
Time to get on NOSTR Saife... !
By saying "19th century" then talking about the early 1900s, Saifdean meant the 20th century.
Killer interview :)
For me it is just hard to use bitcoin for every day expenses like groceries, or fuel or utilities. Not just because the purveyors don't accept bitcoin, but because every time I want to use bitcoin I own, there are tax liabilities. That is a problem that I hope gets solved, because if it doesn't all people will run into this same wall. Bitcoin as a store of value just isn't enough for bitcoin to actually become money or currency, and fiat will always win.
Why would China, India, Russia, etc. want to go along with strengthening the U.S. dollar/bond system? Wouldn’t they introduction their own competing stable-coins backed by gold and other commodities?
I didn't quite follow on Jeff's argument of attack on Layer2 making BTC and the dollar equivalent. Can someone explain this ?
"As long as Bitcoin stays decentralized and secure." JB How sure is that? Can miners be co-opted by a centralized miner controlling block transactions?
No.
@45:39 I think we push USD to be the L3 "debt" layer, with something else as the L2 Instead
The visionary alongside Saylor.
But I would like to see if it doesn’t already exist is it device that connects to your cold storage wallet so that you can remove the amount of money that you want to deal put the wallet back under the mattress then you plug that device into your PC into the Internet?
Hi Saif
Love your content and your books. I'll subscribe if you either remove your commercials or intertwine them in the video in a different way.
Jeff ❤
TLDR - stablecoins on bitcoin are a threat to bitcoin
So usdc and usdt are indeed the dreaded cbdc’s still funding the government. usdt is like #18 on the us bond buyer list. I think that is what Jeff is saying. Though there is that law that people generally spend the shittiest money first so I’m still unsure why you wouldn’t save in btc and keep a very small portion in usdc or usdt to buy groceries etc
These stable coins being largely backed by U.S. bonds has always scared me. Pushing up demand for treasuries and the dollar isn’t what we want to be doing.
The Bitcoin-Dollar system is coming. US-treasury backed stablecoins are the new artificial demand the dollar needs to maintain its dominance
@MFTAB Yes. This is exactly what we need to sidestep at all costs, in my judgment.
@@johndrake3472 pretty sure it’s already too late. Are you concerned it will be bad for bitcoin or bad for the world?
Great but waaaaaay too many ads
Per Jeff saying that houses should be cheaper than Sears homes from the 1930’s-Hypothetically: Please explain how much houses would be today under a Bitcoin system?
Until taxes on transactions are removed it is too complicated to use Bitcoin as a MOE. It will remain a SOV until this is changed.
If bitcoin per transaction costs much more than a layer 2 payment system, moreso for the smaller, everyday purchases, then how or why would people make their purchases on the bitcoin layer 1? Secondly, the block size is much too small for millions or billions of people to make their purchases on layer 1. By definition, bitcoin must have layer 2, layer 3 etc, rails to facilitate its usage in our everyday world.
why so many ads
Currently reading the price of tomorrow by Jeff both. I wonder if it’s available in French. In the process of converting my sister into a maxi. She read the BTC standard which available in French. Either this or broken money by Lyn Alden would a good read for her.
Highly recommend reading Hijacking Bitcoin. Might open your eyes, or at least provide a fresh perspective while being fully cited.
@@_minisatoshi i took your suggestion seriously and searched the book. Written by Roger ver. Really mate? The man who tried to actually destroy bitcoin. He was also arrested in Spain back in April and was extradited for wire fraud and tax evasion. I’m good.
@@afrobian1 read it anyways. Roger tried to save Bitcoin. And he didn’t create BCH either, he was convinced SegWit 2x would go through, but once 2x was rugged (again…) he moved to BCH.
I suspect you’re newer to crypto. Break free of the chains. It will seriously open your eyes, or at least give you a new perspective (fully cited unlike competing books).
👎🏼the ads
what if every fiat currency have a stable currency 🧐
UAE dirham stable coin is coming i think
After the last $70k rejection at this stage of the cycle: something seems off. Whether it is new BTC consolidation into fewer hands or just futures leverage, I don't know. But looking at it objectively: why would an institution invest in an asset that just dropped almost 30% in a week and basically has not gone up since 2021? And that was after potential political support - even possible adoption along with all the ETF's absorbing huge amounts of supply. Sure big picture the price has risen a lot since 2015. Also, 2nd layer solutions for mass adoption has not really produced a 3 click solution. At 60 years old I took 10% off the table. The weekly chart looks, not great.
Houses would be less than $2500 today? Please explain this so I understand more about deflation. I can’t get my brain around this! It sounds better but…like what!???
The government and the system would not siphon off your time and energy. There would be natural balance and flow within a free market. This is just one conclusion in a plebs nutshell. Work in progress within my skull 😁
In order to understand why this is true, you have to understand Jeff's repeated statement of "In a free market, prices fall to the marginal cost of production." That statement is true, because of competition to produce the best product at the lowest price for the consumer and technological advancements. Knowing that, ask yourself the following questions: 1) Why did the materials for a house cost $2,500 in the early 1900s? 2) Why do the materials for the same house cost so much more today when technology has made them cheaper to produce?
You will find that the answer is inflation, caused by the devaluing of the currency. Quite simply, there are many more dollars in circulation today than there were in the early 1900s, thus the price of everything is incredibly higher, because the dollar is worth less compared to every other good. It is, effectively, supply of dollars vs demand of goods.
@@phoenixzoharYep. True cost of a house today should be fractions of that. Around $25 - $250. A house costing upwards of $250K today should tell you that the governing structure of this system has stolen and extracted so much from your bloodline. This should make you enraged.
33
How do you spell that layer 3? Fettimint, Fettament?
fedimint
@@ScottSheppardTheWombatthanks, just found the website
Fetty wap
Nice moustache. Reminds me of someone.
There is no they there is only WE
Omg!
Put the ads back at the beginning, interspersing them is really messing up the flow of conversation and it's impossible to keep the mental context through the ads. It's unbearable to listen to...
You say in free markets costs fall to the marginal cost of production, but that cannot happen. Free markets dont work without profit and profit cannot happen without barriers to entry that render markets not free. That only leaves government and monopolies to produce at no profit, which is no longer a free market.
Why can profit not happen without barriers to entry? A government does not produce anything
@@RJKM777 You can have profits without barriers, but you need entry barriers to keep them. Otherwise, as Jeff implies, competition lowers prices to marginal cost of production, which leaves no room for profit by definition.
This conversation is so pointless. There will never be a decentralized currency, governments will not allow it because they lose power. Never going to happen
Bro let the maxis be delusional if they want. They have a right to do so.
The amount of ads during your podcast is insufferable. Get a job.
You can literally skip past the ads, it's free to listen to so you don't get to complain.
@@funkyseven19 nah, I’d rather listen to Peter McCormack’s podcast than this guy. Came for the guest and left with a bad taste in my mouth from all the peddling.
@@chrishmmr too bad his pod is ending at the end of this month . Must not have been able to make that ad revenue needed 🤣
This is his job
@@funkyseven19Pete McCormack is ending his podcast?
Every Jeff Booth Podcast is the same 🤦♂️
As it should be. The message is simple but take a while to fully absorb. The more people understand it the better. Instead of bitching share it with a friend