Shownotes
The bitcoin halvings have a major effect on the long term price of bitcoin. Understanding what the halvings actually are and when they will occur will happen can help with planning and even predicting the future price of bitcoin.
January 29 2023 Weekly Close (USD)
BTC - 23,774.57
ETH - 1,646.16
ADA - 0.396313
Bitcoin Block at time of recording:
774,285
Podcasting 2.0 Apps Available at http://newpodcastapps.com/
I can be reached by email at mcintosh@genwealthcrypto.com and on twitter at @McIntoshFinTech. My mastodon handle is @mcintosh@podcastindex.social. Looking forward to hearing from you!
Website
Music Credits
Rock Guitar Intro 07 by TaigaSoundProd
Link: https://filmmusic.io/song/8342-rock-guitar-intro-07
License: https://filmmusic.io/standard-license
Funky Life by WinnieTheMoog
Link: https://filmmusic.io/song/6040-funky-life
License: https://filmmusic.io/standard-license
Transcripts
Hey Sat Stackers, it's January the 30th.
Speaker:This is episode 93 of Generational Wealth of Cryptocurrency.
Speaker:I'm your host, Macintosh.
Speaker:Today's episode is about the Bitcoin having.
Speaker:Of course, no one on this podcast is a financial advisor and all information
Speaker:presented on this podcast is for informational purposes only.
Speaker:Now that we have the legal stuff out of the way, let's jump on in.
Speaker:All right, everybody, it's been a decent week, lots of rain in the lower part of the southeast
Speaker:of the United States, been dreary today, but that's okay.
Speaker:Because even if it's raining, it's not stopping Bitcoin.
Speaker:The blocks are still being mined.
Speaker:The network is still running.
Speaker:You can still transfer your Sats around on the Lightning Network 24-7,
Speaker:whether the market is open or it's not. Speaking of the market, let's talk about
Speaker:some numbers because everybody loves numbers, right?
Speaker:We want to see numbers go up and the numbers have gone up a little bit this week.
Speaker:Once again, things are starting to get interesting.
Speaker:I'll be honest, I may have been incorrect about the idea that we were going to go down to
Speaker:15,000, well, below 15,000, 12,000, 10,000.
Speaker:I still would like to see that, to be honest, because I would like to stack some cheaper Sats,
Speaker:but stack we are going to do regardless of the price.
Speaker:We DCA on a daily or a weekly basis, I hope, as has always been my recommendation.
Speaker:Don't try and figure this market out.
Speaker:It's always fun to sit here and talk about where things are going.
Speaker:Things are certainly looking good, but we could hit a wall here at 23,000,
Speaker:24,000 and start going back down.
Speaker:Another large entity, maybe a mining company, maybe two mining companies,
Speaker:maybe another financial entity might crack, sell off a bunch of Bitcoin, drive the price down.
Speaker:We do not know, but I do know that we can continue to stack Sats.
Speaker:Bitcoin price closed earlier today on January the 29th at $23,756.93.
Speaker:Ethereum closed at $1,645.15 and ADA closed at 39.73 cents.
Speaker:All three up, of course, decent amounts for the week.
Speaker:So, as I said, things are looking up right now. We continue.
Speaker:Let's see. Actually, we're down just a little bit since the close at
Speaker:seven Eastern time here in the United States.
Speaker:We are down just a few dollars, not a whole lot, but I do expect it to continue to pump
Speaker:into tomorrow, at least a little bit, and we will see how that works out.
Speaker:I do know that we've got the foamsy announcements, the federal open, whatever, I don't know.
Speaker:It's when Powell gets up and says they're going to raise or lower interest rates, basically.
Speaker:The expectation is for 25-Bit, which is really, really, really,
Speaker:is for 25-Bit, which is really a quarter of a percent increase, is the expectation
Speaker:by almost everyone. And if it is that, I would expect going into the latter part of the week
Speaker:that things would continue to pump. Right now, our futures are down just a little
Speaker:bit for the opening tomorrow, not enough that, I mean, it could come out dead level, to be honest.
Speaker:It's not down very much at all. That's one of the things I tend to look at,
Speaker:really almost on a nightly basis, just to kind of see what the market's going to do
Speaker:in the early morning. At this point, looking at that, I mean,
Speaker:let's see, the S&P is down like 12 bucks, so that could be a complete wash. It could not go
Speaker:down at all. If it does go down $12, it's not going to really cause a big kerfuffle.
Speaker:So I expect things to just kind of keep moving along. We will see what happens Wednesday,
Speaker:and we will go on. Wednesday is February the 1st. Typically, actually, February,
Speaker:if I remember correctly, that's one of the months, for whatever reason, that Bitcoin has done very
Speaker:well. I think it's like nine out of 12 months, or at times, February has been positive for Bitcoin,
Speaker:something like that. I guess it's been 14 years, so some very high percentage of that,
Speaker:if that makes sense. We will see. I don't expect that we'll have a 50% move in February, but hey,
Speaker:who knows? This is Bitcoin. It certainly could. That would be exciting, I'll say that.
Speaker:I'm drinking the Earl Grey tonight, and it is certainly nice and hot. I do have some honey
Speaker:tonight, and so it tastes a little bit better than it has been the last few weeks.
Speaker:So we'll drink our Earl Grey, and we'll jump right on in to our weekly topic. So as I said in the
Speaker:opening tonight, we're going to be talking about the Bitcoin halving. I think most of you at least
Speaker:have a general idea of the Bitcoin halving. I'm not sure that everyone does. I'm sure that some
Speaker:of the listeners do not. Some of you may have never even heard of it. In my opinion, the Bitcoin
Speaker:halving and the difficulty adjustment level, which we should probably talk about separately,
Speaker:are two of the main reasons why Bitcoin performs as it does. So we'll begin with the Bitcoin
Speaker:halving. When Bitcoin began in 2009, each block of Bitcoin was worth 50 Bitcoins. So when you
Speaker:mine a block, and that's what they call it, when you mine a block of Bitcoin, it was actually 50
Speaker:Bitcoins in that block. And it ran that way until 2012. So 2009, 10, 11, 12. So three years later,
Speaker:they did what's called the halving. And this was built into the code. And it's not an actual
Speaker:three years or typically four years, as we'll discuss after this. It's actually based on the
Speaker:block number. When the network reaches a certain block, then the halving occurs. And what that
Speaker:means is that when you mine a block after that, it's half the number of Bitcoin. So in the first
Speaker:halving in 2012, it went from 50 to 25 Bitcoin per block. In 2016, it went from 25 to 12.5 Bitcoin per
Speaker:block that gets mined. In 2020, guess what it went to? 6.25 Bitcoin per block. And that's
Speaker:where we're at right now. In 2024, I think it's in May, it may be in March. I'm almost sure it's a
Speaker:number, a month that begins with an M. But regardless, we'll know as we get closer.
Speaker:The next halving will occur. And again, it's based on a block number, not an actual chronological
Speaker:date. It's just that on average, we know that blocks are being mined every 10 minutes. So we
Speaker:can calculate roughly when a halving will occur. So the next halving, 2024, will go down to 3.125.
Speaker:And then it goes on from there. So the halvings are scheduled to occur until the final halving
Speaker:in 2140. That actually will be when the mining of Bitcoin stops. Now, we've never really talked
Speaker:about that topic. I think we've mentioned, we've certainly talked about there will be 21 million
Speaker:Bitcoin. There will not be more. There will not be more mining after that point. We've not really
Speaker:discussed the ramifications of that. I'll save that for another show. We are actually talking about
Speaker:over 100 years from now. And people have given that thought. I don't know that they really have
Speaker:a final answer at this point, but I think people have some ideas and some plans. I think we will
Speaker:see an evolution in a sense of the network as we get closer to that point. And I am perfectly
Speaker:confident at that point that when the mining's actual blocks stop, that the network will continue
Speaker:to function. There will be incentives for people to validate these transactions. And I think
Speaker:people will be able to manage the network and manage the network, which is really what miners
Speaker:do. They bundle up transactions, they mine the blocks, so on and so forth. So I actually,
Speaker:because I don't know, I'm weird like this. I sat down today and I charted out every halving between
Speaker:2012 and 2140 in an Excel spreadsheet in terms of Bitcoin. And then as it got lower and lower,
Speaker:the Bitcoin. So I converted it all to satoshis as well. So for example, 2012, 25 blocks, that's
Speaker:actually 2.5 billion, billion with a B, satoshis. Remember, there's a hundred million satoshis per
Speaker:Bitcoin. And then as it goes through, for example, right now we're in 2020, you get 625 million. Yes,
Speaker:that makes sense. 625 million satoshis per block. Then it drops to 312 million, 156, 78, 39, 19, 9,
Speaker:9, 421. In 2060, each block will only mine 600,000 satoshis. 2064, 300,000, 152,000, 76,000,
Speaker:38,000 in 2076 and so on. I won't keep going. And of course I'm not including all the,
Speaker:I'm rounding it. Okay. For the sake of the listenability of this episode.
Speaker:All right. So I sketched all that out. Now, why are we even talking about this? Why is this
Speaker:important? What we've seen in the first three halvings, 2012, 2016, and 2020, is that the
Speaker:shrinking of the supply of Bitcoin increases the price pressure. So the price is going up.
Speaker:As fewer and fewer Bitcoin are mined per block, the price has on average increased.
Speaker:So you can graph this out. You can see definite spikes in the charts post halvings. When did we
Speaker:have our last high? 69,000 occurred in 2021 in the last quarter of 2021. So we see the halving
Speaker:occurred in 2020. I don't have the exact date. The price reached its all time high in 2021.
Speaker:In 2016, we had the halving. And when did we have Bitcoin hit $20,000 in December of 2020.
Speaker:So again, we reached that cycle high, if you want to call it, that post halving. So what we see is,
Speaker:I believe what we see is that there's even in the run up to the halving, the price is increasing,
Speaker:but post halving, we certainly see the price continue to increase. And we could go back
Speaker:and you would see the same thing. So this diminishing of supply is increasing the price
Speaker:of Bitcoin. Now the overall supply of Bitcoin is theoretically not going down. Bitcoin don't get
Speaker:burned like in some other networks. Bitcoin can be launched. You can lock them out. You can lose
Speaker:them in that sense. There's a famous story going around of a guy in England, if I remember correctly,
Speaker:who had a lot of Bitcoin on his desktop, essentially on a hard drive, stored on a hard drive in a wallet,
Speaker:and it got into the dump somehow. Now how that happened, I have no idea, but that's the story.
Speaker:And he's offering to pay the town a lot of money to go through and dig through in the hopes of
Speaker:finding that hard drive because of the millions of dollars that are on that hard drive. So you can
Speaker:lose Bitcoin in that sense. So we talk about self-custody. We talk about keeping our money,
Speaker:and we have to be careful about that, but you can lose your money. Now the Bitcoin is still on the
Speaker:blockchain, but he doesn't have access to it, essentially. All right. So where were we going
Speaker:with this? So these halvings, these program scarcity is one of the aspects that drives up the price of
Speaker:Bitcoin. So as we go through these halvings, we should continue to see the price go up. I do not
Speaker:expect. Actually, wow. Okay. So that last halving in 2020, the price was $68,000 according to this,
Speaker:according to my notes on May the 11th of 2020. Hmm. I think my data is wrong here.
Speaker:I'm sure that the halving occurred on May the 11th. I don't think the price was $68,000.
Speaker:Let me look that up real quick. That sounds like the value at the end of the year.
Speaker:Yeah. I've got something wrong here in my notes. Oh, I see. Sorry. I was looking at the wrong column.
Speaker:My notes are correct. The Bitcoin value on May the 11th was $8821.42. The price of a block
Speaker:of Bitcoin, six of those, $6.25, was $55,133. I apologize. I was looking at my notes incorrectly.
Speaker:The $68,000 actually was something that I'm not even going to talk about tonight.
Speaker:I'm trying to tie in income Bitcoin halvings price, the future expectations of household
Speaker:income, at least here in the United States on average, to try and model what the price
Speaker:of Bitcoin would be at a certain point down the road. It might be helpful, useful for
Speaker:somebody who's like going, well, what's the price of Bitcoin when I retire? Maybe I'm
Speaker:retiring in 2140, or whatever. What would be the value of a Bitcoin? Then, what do I need to do
Speaker:to get to that point? I don't have it all tied together. I apologize. I had those notes in here
Speaker:as well. I hope to talk about that on a future show, if I can get it all tied together.
Speaker:The point of all this, though, Bitcoin value on the halving date, $8821. We know we hit
Speaker:that price of $69,000 in November of 2021, and then it went down from there. Again, next Bitcoin
Speaker:halving coming up in 2024, we should see a price increase as we go up into that, and then certainly
Speaker:after the halving. The steepest part of the price increase historically happens after the halving.
Speaker:And that halving is still more than a year away. So now is an excellent opportunity to be stacking
Speaker:those sats, as we always talk about. So we see that this Bitcoin halving is part of the mechanism
Speaker:that's used to create what an Austrian economist would describe as sell money. Now, on the other
Speaker:hand, there are crypto systems that they mine coins in a block, just like Bitcoin does, but they
Speaker:don't do the halving and they have no end date. So they will forever and ever be mining those coins.
Speaker:And the supply of those coins will be ever and ever increasing. And that sounds suspiciously
Speaker:to me, frankly, like the money printing effectively that the government does.
Speaker:And we know, after our discussions about Austrian versus Keynesian economies or economics,
Speaker:that that doesn't work so well. So just something to think about there. In fact,
Speaker:it's funny because before fiat, before countries printed money like they're doing now,
Speaker:they were gold-backed. And of course, frequently, they actually used gold for coinage.
Speaker:It hasn't been terribly long here in the United States when you could get a $20,000 coin.
Speaker:When was the last $20 gold piece created? I want to say it was the late 1800s. I stand corrected.
Speaker:So here's a little bit of trivia for you. There were two different versions minted.
Speaker:There was a $20 gold coin that was minted from 1849 to 1933. And it was minted in the late 1800s.
Speaker:1849 to 1933. And you had a $20 long-acre coin from 49 to 1907. And then the Saint
Speaker:Godin's coin minted from 1907 to 1933. So even then, you had a $20 gold piece. I believe those
Speaker:gold coins had an ounce of gold in them. I'll have to double check that. I'm almost certain
Speaker:the old one did. I'm not sure, but I didn't realize we had gold coins as long as 1933.
Speaker:According to this, 1933, there were $10 gold pieces known as the eagle, $20 gold pieces known
Speaker:as the double eagle. And the double eagle did contain nearly an ounce of gold. So it wasn't
Speaker:quite an ounce, but it was nearly an ounce. It was worth 20 bucks. And what will that get you now?
Speaker:$1700, $1800. That's inflation. All right. Back to the subject though. Unlike gold,
Speaker:gold continues to be mined. It will be mined for the foreseeable future.
Speaker:In fact, they could find new reserves at any time that contained a lot of gold
Speaker:in them, and that would depress the market. So in that sense, somewhat gold is not actually a sound
Speaker:money. Now it is extremely difficult by and large to mine gold. And it's a fairly stable asset in
Speaker:that aspect. But from my understanding, about 2% of the inventory of gold gets actually mined every
Speaker:year. So basically they have a 2% inflation kind of built in to that system. But in these days,
Speaker:who cares about 2%, right? On the other hand, with Bitcoin, you could look at it.
Speaker:You are increasing the supply of Bitcoin up until 2140, but it is deflationary in the sense that
Speaker:the amount of Bitcoin that's being mined is going down. Now, if we were to replace this with gold,
Speaker:just as a silly example, if I were mining 50 tons of gold a year, and then after four years,
Speaker:that went down to 25 tons, and then 12 and a half, and six and a quarter, and so on and so forth.
Speaker:And it truly cost the same amount to mine that gold. Do you think that gold would be getting
Speaker:more valuable? Of course it would. That's not the case these days. We mine, and roughly the same
Speaker:amount gets mined every year. So therefore the price is reasonably stable. But in this case,
Speaker:the amount being mined, and it's almost a perfect analogy, even though of course the price is
Speaker:going to go up. It would make sense. That combined with this difficulty adjustment is the genius,
Speaker:in my opinion, behind Bitcoin mining and Bitcoin economics in that sense. We'll talk about,
Speaker:maybe next week we'll talk about the difficulty adjustment level. We'll talk about it soon,
Speaker:though, because it is a part of this basic, well,
Speaker:I'm going to give you the five-minute version here in case I don't get around to it anytime soon. The
Speaker:difficulty adjustment level is on a periodic basis. The difficulty of mining the Bitcoin is adjusted,
Speaker:and it's about every two weeks. And why is this done? It helps to keep the block times
Speaker:at roughly 10 minutes. If you watch a block explode, it's because of the difficulty adjustment level.
Speaker:If you watch a block explorer, if you watch what's actually going on in the mining process,
Speaker:it's not every 10 minutes that a block gets mined. I've heard people say things like TikTok next
Speaker:block. It's almost like this chronological, exactly every 10 minutes a block is mined.
Speaker:That is actually not true. But this mining adjustment does keep it in balance. And the
Speaker:reason why is because as global hash rate goes up, that's going to make it more likely than a block
Speaker:is mined. So therefore, they make it more difficult. And this all happens automatically in the code.
Speaker:And that, combined with the halving, to me is the genius. When we keep this difficulty level
Speaker:so that the blocks are only mined every 10 minutes approximately, and we're bringing every four years
Speaker:down the amount of Bitcoin that are mined, you get this genius system that essentially guarantees
Speaker:as long as some crazy global disaster doesn't take place. I guess theoretically, well, it's not
Speaker:theoretical. It is possible that maybe a bug happens in the Bitcoin code and something
Speaker:catastrophic happens to knock Bitcoin out or whatever. But assuming that those things
Speaker:don't happen, then basically it's guaranteed that Bitcoin is going to continue to rise in real value.
Speaker:So going back to this, like I said, I haven't worked all this out, but what I want to do is
Speaker:basically figure out a way so that people can say, I'm retiring in this year, and can I get some idea
Speaker:at least around the halving of what the price would be? So if I'm retiring in 2040, then it
Speaker:would be that year. Can I get an idea based on the past with an admittedly fairly small data set? Of
Speaker:course, we've only had three halvings so far, but can I get an idea of what Bitcoin will be?
Speaker:Now, I may be completely wrong on this, but it's fun to play with numbers. So I'm going to throw
Speaker:this out there hopefully at some point. But it also gave me a good chance to jump into this
Speaker:discussion of Bitcoin, halving, and its importance. Because over the next few months, you're going to
Speaker:hear halving, halving, halving. People are going to start talking about it a lot. And I want you
Speaker:to understand what that means. I want you to understand how that's going to impact the price
Speaker:of Bitcoin. Outside of the constraints of things like these mining companies failing because of
Speaker:recession, these financial difficulties of companies like Genesis and this kind of thing,
Speaker:then we know that based on past history, there's every expectation of Bitcoin price continuing to
Speaker:move up. I'm always talking about zoom out. Don't be on this micro level looking at, well, the price
Speaker:of Bitcoin went down this week or this day or this hour or even this month. You look at the big
Speaker:picture. Where was it at in 2012? Where was it at in 2016? Where was it at in 2020? Where do we
Speaker:expect it to be in 2024 and 2028 and 2032? And what's it going to be 100 years from now
Speaker:for your great grandchildren? And that's what we talk about here on Generational
Speaker:Wealth and Cryptocurrency. How can we develop assets that we can pass on
Speaker:not only to our children, but to their children and their children?
Speaker:So I want to get off this short term, you know, number go up mindset and oh my, the market crash.
Speaker:To me, the market crashing is a great opportunity to buy Bitcoin.
Speaker:So, all right, that's it on the mining. I hope you find that helpful. I'm always looking to throw
Speaker:out content that people help them raise their understanding of how things actually operate.
Speaker:I think a lot of times people assume that we know things that we don't necessarily know. So now when
Speaker:you hear this Bitcoin halving being thrown around, you'll know. You know that this occurs every four
Speaker:years. You know the box size gets cut in half and you know what that does to the price in general.
Speaker:I will try and find a chart and put it on my Twitter and Mastodon accounts so that you can
Speaker:take a look at that if you would like showing the global, the price of Bitcoin versus when the
Speaker:halving occurs and hopefully you can see that correlation. Let's talk about our supporters
Speaker:for just a minute. I always appreciate the people who support this podcast and we had some supporters
Speaker:this week, of course. So these first three are about last week's episode, What To Tell That Person.
Speaker:I hope you guys, I realized in retrospect, clearly y'all have probably figured out I'm
Speaker:not a very good marketer. I think that's a big shock to no one. But that title,
Speaker:I didn't know what else to call it. And so I got a good number of downloads, but I think maybe a
Speaker:lot of people didn't quite catch on to what I was trying to say. So I hope you understand,
Speaker:you are going to have times when people come up to you, if you're involved in this business,
Speaker:and they're going to say, well, what about XY or Z token? And you need to have an answer for that.
Speaker:And you need to have a reason why Bitcoin alone is the best asset out there. And if you're going
Speaker:to invest in one coin, one crypto, if you want to call it that, it should be Bitcoin.
Speaker:And you need to be able to back that up and you need to understand that.
Speaker:All right. Hypersensitivosaurus, 120 Sats, thanks Hypersensitivosaurus. Appreciate that.
Speaker:You're becoming a regular supporter, which is always great. Good to hear from you again.
Speaker:Cryptosinus, 100 Sats. I think we've heard from them a couple of times as well.
Speaker:Send a message along with it saying HODL. Love it. For those of you who don't know,
Speaker:HODL is a misspelling of hold, as in hold your Bitcoin, don't sell.
Speaker:And I don't care what the price gets down to. And there are people, myself included,
Speaker:who if Bitcoin went down to a hundred dollars, we would not sell. I would absolutely be looking
Speaker:to buy every bit of Bitcoin I could because Bitcoin has gone through this a number of times.
Speaker:Bitcoin has had 90% drawdowns before. Absolutely. And it's scary when it's your first time and it
Speaker:may be scary when it's your second or third time. As we move forward, I promise you in 2052 that we
Speaker:will not be having 90% drawdowns because the asset will be too big. It will not be controllable by
Speaker:any one person or corporation or country in terms of price. And the price will just be the price.
Speaker:The price will be there because of global trade. The price will be there because people will not
Speaker:be wanting to part with their Sats. So in 2052, when you're mining 4,882,812 Sats per block,
Speaker:all right, which is 0.0488 Bitcoin, less than 0.05 Bitcoin, the price will be much higher than
Speaker:it is right now. And everyone will be trying to get their hands on it. So I appreciate that Crypto
Speaker:sent us. Hottelaw, my friend, the Miramortals podcast, Kyrin, sent us in 2200. I have a
Speaker:suspicion he sent in 2222, which is a Roadux, one of my favorite boost. And it's getting clipped
Speaker:off by Satoshi Stream for their part. And I'm not seeing the full amount, but either way,
Speaker:really appreciate it. And he sent along a note. He said some Sats to buy more honey. And that's
Speaker:exactly what I did. So I appreciate that. And we also had a user listening to the inflation
Speaker:and deflation episode sent in 99 Sats. That was Lou Eng, engineer maybe, and no message,
Speaker:but I really appreciate that. Glad you enjoyed that. Awesome. So let's jump into the news for
Speaker:the week. It wasn't a whole lot going on. There was rumblings in some of these cases that are
Speaker:going on, bankruptcy, this kind of thing. Genesis in particular, Gemini, Gemini is the Winklevoss
Speaker:twins exchange. They had billions of dollars out with Genesis for their earned product or whatever.
Speaker:Genesis has declared, I don't know, they shut down. I don't think they've declared bankruptcy.
Speaker:Maybe they have, but regardless, yeah, I didn't actually post a whole lot. On January the 26th,
Speaker:the Tokyo CPI announced overall actual rate of 4.4%, forecast of 4%. The previous was 4%.
Speaker:So we've been talking about Tokyo for a long time, Japan, the Bank of Japan,
Speaker:because they have the highest amount of debt to GDP of any country in the world.
Speaker:They have been the leaders, so to speak, in this quantitative easing, modern monetary theory,
Speaker:blah, blah, blah, print your money, make your, create your debt.
Speaker:And interest rates, raising rates because of inflation will kill them because they will not
Speaker:be able to pay their debts. And so having a CPI that is starting to creep up like this, especially
Speaker:when it jumps ahead by that much, which doesn't sound like a whole lot, but it was forecast at
Speaker:4% and it was off by 10% in the forecast of 4.4%. That was a big, big deal.
Speaker:The Central Bank of Nigeria has started limiting cash withdrawals to $44 per day earlier this month.
Speaker:And may be related. In fact, I do believe it was. The country leads the world in Google searches for
Speaker:buy Bitcoin. Nigeria has been having a lot of economic trouble. That does not seem to be a
Speaker:baiting. And now they are taking drastic steps to try and fix that. And what they're going to do
Speaker:while doing that is hurt everyone in the country. So those people are probably doing a smart thing
Speaker:in buying Bitcoin. So the Mises Institute, and I hope I said that right, M-I-S-E-S, it's named
Speaker:after one of the early Austrian economist, but it's M-I-S-E-S.org. It is the website. I would
Speaker:recommend that you check it out. I put out an article just a few days ago that I posted on
Speaker:link to. They were talking about wholesale price inflation is slowing as the economy worsens. So
Speaker:there's been a lot of discussion. Are we in a recession? Is there going to be a recession?
Speaker:Is it going to be a global recession? So on and so forth. There was new PPI data that came out on
Speaker:Wednesday. So the PPI is producer price index, and it's just another form of
Speaker:monitoring of the markets and rates of inflation and this kind of thing.
Speaker:And so it looks like, and we've seen this over a few months, that the rate of increase in price
Speaker:inflation and inflation is slowing. Year over year inflation, however, from December remains,
Speaker:at a 40 year high or very near that. And so we are, here in the United States, we're still dealing
Speaker:with what amounts to a $6 trillion surge in the economy. So they printed $6 trillion over the last
Speaker:few years and put it into the economy. And if you think about that in relation to the total number
Speaker:of inflation, the total number of inflation in the United States, the total number of inflation in
Speaker:the United States, the total inflation to the total number, is it 30.4? I always get it wrong.
Speaker:I think it's $30.4 trillion. That's a huge amount of that debt that's only come about in the last
Speaker:two years in 2020 and 2021. But the rest of this article talks about even though inflation
Speaker:sign that the market is about to experience kind of the worst part of this recession.
Speaker:Now, my argument has always been, a year ago, I started probably, or maybe even more,
Speaker:talking about this, inflation is rising. I'm starting to hear, no, admittedly a small
Speaker:set, statistical set, but I was hearing people struggling this kind of thing and looking at the
Speaker:numbers and I'm going, yeah, this stuff's going up and we're printing a lot of money, so on and so
Speaker:forth. Well, the inflation part itself has started to slow down and maybe the US doesn't reach 10%
Speaker:inflation like they have in Germany or I believe in Great Britain, but that does not mean that the
Speaker:recession that we're in or arguably not in or whatever, it will still occur. It may get worse
Speaker:from here, even though the inflation rate doesn't keep going up because companies are laying off,
Speaker:trimming fat, doing everything they can to kind of make things lean and that hurts people.
Speaker:And we could go through the numbers about all the different companies, tech companies,
Speaker:especially that are laying off people. But as time goes by, those people are going to slow down
Speaker:their spending, of course, because they don't have a job. And everybody's going to be getting
Speaker:scarier and scarier, they're going to spend less and less and the economy is going to get worse and
Speaker:worse because of that. It's a great article. I posted it on Twitter. I think I've put it on
Speaker:Mastodon as well. You should take a look at it. That is actually all the news I'd posted.
Speaker:I've been, I mentioned last week, I was tied up with a personal project and I'm not going to talk
Speaker:about, look, I'll just disclose to you all a little bit in case you haven't figured out after
Speaker:almost 100 episodes. I'm not really trying to talk about myself. I go under a pseudonym.
Speaker:I don't go by my real name. I don't tell you where I live other than I live in the Southeast
Speaker:United States. I'm not really interested in, I have other interests outside of crypto,
Speaker:outside of Bitcoin, but I'm not bringing those into this podcast. Sometimes they do cause
Speaker:issues where I ended up working on something like last weekend or weekend and I just could not record.
Speaker:And I'm sorry that I can't really talk about that anymore, but
Speaker:anyways, that's just the way that it is. It's what I've chosen to do
Speaker:and I will maintain that. I'm not trying to hide my face or anything. There are Bitcoiners
Speaker:who literally do not show their face. And if you dig around enough, you can figure out who I am.
Speaker:I'm not trying to hide that in a sense, but I'm just also not interested in letting
Speaker:every Tom, Dick, and Harry know my name and where I live and whatever. So take that for
Speaker:whatever it's worth. Anyways, Rabbit Trail that I went off on, apologize. I haven't tweeted a whole
Speaker:lot this week. Let me look on Mastodon really quick on what I posted here. January the 27th,
Speaker:I posted, there's a US Senator that introduced a bill to have all restaurants and vending machines
Speaker:in Congress buildings. Is that Bitcoin? That's cool. Now this I find rather ironic. I retweeted
Speaker:something that Bitcoin Magazine had posted on Mastodon. There was a bill that was introduced
Speaker:in New York, so this is at the state level, to establish Bitcoin as a means of payment for
Speaker:state agencies. We've seen this. I think Colorado does it now. I think Arizona might.
Speaker:I just think it's rather ironic that the same state that won't allow me to plug in a Bitcoin
Speaker:miner is now talking about establishing Bitcoin as a means of payment. Bitcoin will come in gradually
Speaker:step by step, and then one day it will be here. It will be gradually and then suddenly,
Speaker:and people will turn around and go, what just happened? Why is everybody using Bitcoin,
Speaker:saving Bitcoin, talking about Bitcoin? And if you're worried, by the way, about spending
Speaker:the Bitcoin that you're trying to save, you can use the Strike app here in the United States,
Speaker:for example, and you can take it directly from Fiat, from dollars out of your bank account,
Speaker:and it gets converted into Sats, and then you can send that to somebody.
Speaker:So you don't have to touch your stash. I've talked about that a number of times.
Speaker:You should be saving Bitcoin. You should be spending Bitcoin because the spending of the
Speaker:Bitcoin will grease the wheels of this whole system. It won't just be countries talking to
Speaker:each other in monetary terms through Bitcoin. It will be people out on the street. It will be,
Speaker:I need a plumber to do my job here. Hey, do you accept Bitcoin? Yep. Here's some money. There
Speaker:you go. Click done. Point of sale giant Clover is integrating the Lightning Network. This came out
Speaker:on January the 26th. This actually is happening through Strike, even though it won't just be
Speaker:Strike. So you will be able to use Bitcoin Lightning wallets at those terminals to pay for
Speaker:that merchandise, or I think it's also a lot of restaurants and that kind of thing.
Speaker:January the 26th, the Mississippi State Committee approved a bill to protect the right to run
Speaker:a node and mine Bitcoin. This is great. And we need this in more states.
Speaker:Just to show how early we are, a gentleman named Mr. Hill, and I see that because he's got a
Speaker:faceplate, a nameplate in front of him in the committee meeting, the chair of the New Digital
Speaker:Assets Committee, sending Bitcoin takes so long, my coffee gets cold. It's not ready for payments.
Speaker:Mr. Hill, respectfully, you don't know what you're talking about because Mr. Hill,
Speaker:if you had a Lightning wallet on your phone, I could send you money from Strike or from my
Speaker:Lightning wallet in literally in microseconds before you even got your coffee cup up to your
Speaker:lips. So people like this who don't know what they're talking about, who are making policy
Speaker:for this country, I'll just stop there. So the people who are talking to you about how Bitcoin
Speaker:is bad energy and waste of energy and whatever, I've mentioned this earlier, but here's an actual
Speaker:magazine article and Bitcoin magazine. Kazakhstan, where they used to offer very cheap energy
Speaker:for mining, and there was a lot of mining going, it was like two, three cents a kilowatt
Speaker:versus eight cents here in the United States. It was super cheap. Of course, Kazakhstan has issues,
Speaker:but because of that, the miners would set up shop there and they'd run their mining operations.
Speaker:Well, for whatever reason, Kazakhstan, like China, kicked them all out when that happened.
Speaker:And probably because of that, the amount of energy that was used by Bitcoin that was clean energy,
Speaker:solar, wind, renewable, hydro, whatever, went up by 4.7%. And so it's above 50% from what I
Speaker:understand. And it's nowhere close in any other industry. And yet these people have the audacity
Speaker:to talk to us about Bitcoin being dirty and Bitcoin consuming so much energy. Well, Bitcoin
Speaker:is going to run the global world network of power, and you're worried about it running more than some
Speaker:stupid video game. So whatever. And by the way, it's in our benefit to use cheap energy, which
Speaker:frequently is places like oil wellheads, where they're flaring off natural gas and methane,
Speaker:because they don't have the facilities to get that out of there. So we set up a Bitcoin rig
Speaker:right there, an operation, not one single server, and run a generator off of that natural gas or
Speaker:that methane and power that Bitcoin for very cheap prices. Send it out via satellite internet if you
Speaker:have to. Boom, done. Who else is doing that? I don't hear about Ethereum miners being run like that.
Speaker:I don't hear about Litecoin. I don't know, whatever, whoever, whatever miner there is,
Speaker:or any other industry. How can the steel industry, for example, offset its bad energy use or whatever
Speaker:by doing that? They can't because steel requires facilities that have to be in a single set place,
Speaker:and they're not going to be out by a wellhead. In Arizona, a Senator, Wendy Rogers, has introduced
Speaker:a set of bills aimed to make Bitcoin legal tender in Arizona and allowing state agencies
Speaker:to accept Bitcoin. That was actually the thing I was referring to earlier. I believe Colorado,
Speaker:not legal Bitcoin legal tender, but the state agencies are required to accept Bitcoin.
Speaker:All right. That wraps up the news I had for the week. There was some stuff going on. It's stuff
Speaker:we've talked about before. I'm tired of talking about it. Whatever. Barry Silbert, I think is his
Speaker:name, Grayscale, Genesis, which I'd already mentioned, and his wrapper company around that,
Speaker:essentially. They may all go bankrupt. Whatever. I don't care. I don't care because it's not going
Speaker:to affect me and what I'm doing. If you're wanting to know the latest up-to-date details
Speaker:on those sagas, then this probably isn't the right podcast for you. Sorry, I don't want to be short.
Speaker:I just, I don't have time to cover everything. I used to try, but I don't. And I think there's
Speaker:other things that are too important. Too important. All right. So we're getting close to an hour. I'm
Speaker:going to go ahead and wrap this up. I've got a couple of things real quick though before I do.
Speaker:All right. Let me get some tea. Hang on.
Speaker:I need some help. I do.
Speaker:So I have discussed, of course, in the past, we've talked about every token under the sun.
Speaker:Certainly Ethereum, ADA, we've covered a lot of other tokens, at least in passing.
Speaker:And I told y'all a few months ago, I think it was now. I'm pivoting. I'm going Bitcoin
Speaker:in my investing, in what I do. I'm going Bitcoin only. I'm not going to continue to carry Ethereum,
Speaker:ADA, anything else. My plan is at the top of this next market, I'm going to sell my Ethereum,
Speaker:either directly into Bitcoin or into dollars. Same with ADA, same with anything else I've got,
Speaker:but I'm not going to continue to discuss those ecosystems.
Speaker:I feel like Bitcoin is the safest asset out there. I don't have time to talk about these other things
Speaker:and I'm tired of people losing their money in scams, in rug pulls, in hacks, and this kind of
Speaker:thing. And those are rampant in those environments. Well, Ethereum never has any problems. Oh, really?
Speaker:Okay. Well, BadgerDAL, we'll just start there. Just $100 million,
Speaker:whatever. I think I just saw something actually, some big hack, the guy started moving the money
Speaker:today or whatever. So I'm sure that'll play with the price of Ethereum. It was hundreds of millions
Speaker:of dollars or a hundred million or something like that. It was a lot. I just don't want to talk
Speaker:about it. I want to focus this podcast down to what I think is most important and that is Bitcoin.
Speaker:How do we create Bitcoin? How do we mine Bitcoin? How do we manage the Bitcoin that we have?
Speaker:You need to know how to keep that safe. We can talk about things like what I've been looking at
Speaker:here in these halvings and what does that mean for the future of Bitcoin. There's hundreds of
Speaker:topics that we can talk about about Bitcoin. And I can sleep better knowing that I'm not going to
Speaker:and I can sleep better knowing that I don't have to worry about my listeners investing in LUNA
Speaker:or the FTT tokens or what happens if XRP comes out and the SEC says,
Speaker:we're shutting you guys down because it could still happen. Oh, well, that'll just implode
Speaker:that ecosystem. Or the next time that Solana just stops, which seems like it happens about
Speaker:once a month. I don't know. I don't even keep up anymore. So I just don't want to worry about that.
Speaker:If you want to get that information, this probably isn't the right place to get it.
Speaker:I'm going to stop even saying the price of Ethereum and ADA. You can get an app on your
Speaker:phone if you really want that. Get it in real time and then you'll just have another reason to look
Speaker:at your phone. I'm going to talk about Bitcoin. Now, I'm not trying to scare anybody off. I hope
Speaker:this is a good thing. I think that it is. It's my journey and that's all this podcast has been about,
Speaker:frankly, is just kind of walking along my journey and it was not hypocritical. It's not hypocritical
Speaker:for me to talk about these other things, but I just think that Bitcoin is more important
Speaker:and I want to preach a message, so to speak, that
Speaker:is very clear. So, that being said, here's where I need some help.
Speaker:The name of this podcast is Generational Wealth with Cryptocurrency.
Speaker:I'm not even sure it was the best title when I came up with it, but at this point,
Speaker:it just doesn't fit and I'm ready for a change. I would like to change the title of this podcast
Speaker:to something and probably not Generational Wealth with Bitcoin. I don't know. That just doesn't
Speaker:have the right ring to it to me. So, I am open to anybody's suggestion. I would love it if you
Speaker:would boost and let me know and it doesn't have to be a big boost. What your thoughts are?
Speaker:I'm looking at things like how to help reach the unbanked people in third world countries
Speaker:or developing nations or whatever that they don't have a bank account. People like these
Speaker:people in Nigeria who are experiencing extreme economic circumstances because of the policies
Speaker:of their countries. I want to help people with mining. I want to help people how to
Speaker:learn about Bitcoin, how to save their Bitcoin safely. They have a saying,
Speaker:you fall down the rabbit hole in Bitcoin. It's like Alice in Wonderland and that's what the
Speaker:reference is to, I believe. It's what I want to make it into anyways. There's just layer after
Speaker:layer after layer and you peel it off. You're like, I'm at the bottom. No, I'm at the bottom.
Speaker:I'm at the bottom. No, I'm at the bottom. No, you never get, it doesn't seem to me like you,
Speaker:I've been doing Bitcoin since 2013. Okay. I've never got to the bottom. I'm not even close.
Speaker:I've learned more about energy and economics in the last couple of years because of Bitcoin
Speaker:than I ever thought possible. So, I don't know what we call it, but I'm open for suggestions.
Speaker:At some point, I will just have to pick something and change it because I'm not going to leave my
Speaker:podcast up there in the long term calling it Generational Wealth of Cryptocurrency when we
Speaker:don't talk about cryptocurrencies. We talk about Bitcoin. So, I would love to hear from some of
Speaker:y'all. I have some of the best listeners, some of the best supporters. This is what we call
Speaker:a value for value podcast. What that means is that I don't have any ads. I don't have any sponsors.
Speaker:I have people who listen and people like Kyrin from Air Mortals who support the podcast.
Speaker:This isn't a full-time job for me. I'm completely transparent about the money that I make. I told
Speaker:y'all last year, it's a hundred thousand Sats. So, about 20 bucks. I decided a long time ago
Speaker:that for journalistic reasons alone, I was not going to be taking on any kind of sponsorships.
Speaker:My numbers are actually growing. I was looking at that earlier tonight. When we close out this
Speaker:month, I will have the highest numbers by far over double of any month. So, I don't know if those are
Speaker:all coming from Fountain, from the promotion that I run, or it's just long-term organic.
Speaker:It has been growing and I expect as a bull run develops, more people listen in a bull market
Speaker:than a bear market. It's funny because in a bear market, you have time to listen and learn and do
Speaker:things, but I don't know. That is what happens and it's quite obvious. So, maybe that's what it is.
Speaker:Maybe that's the actual sign the bottom is in and we're going up from here. That would actually be
Speaker:hilarious. But anyways, because of that, you can support this podcast in three different ways,
Speaker:in time and talent and in treasure. If you want to support the podcast and has the time or talent,
Speaker:there's tons of things that I want to get done this year. I'd love to rebuild the website.
Speaker:I'm looking at chapters for the podcast. I'm going to have to move it off Captivate, I think,
Speaker:to do that. They're not showing any interest in doing chapters and I'm kind of over it.
Speaker:I want to be a little more self-sovereign. Frankly, I'm looking into hosting that myself.
Speaker:I've got some other things that I've got to do in terms of some other websites that I host.
Speaker:To be honest, moving that onto my own setup and then hosting the podcast files out of, say,
Speaker:S3 objects or whatever would not be too challenging. It just takes time.
Speaker:So anyways, there's different things, transcriptions, whatever. Treasure,
Speaker:it's just what it sounds like. It's SATS, ladies and gentlemen. It is SATS only at this point.
Speaker:I've chosen, I used to have PayPal and frankly, with the censorship and suppression and whatever
Speaker:you want to call it that they're doing, I took that off. I don't have any way for people to send
Speaker:me fiat. You can send me SATS through any Podcast 2.0 app. That's Fountain, like I've already
Speaker:mentioned, or you can go to newpodcastapps.com and there are a whole list of Podcast 2.0 apps.
Speaker:These are apps that are light years at this point ahead of your Apple Podcast app that you
Speaker:very likely are using. At least the average person is out there. We've got transcription
Speaker:support. We've got chapters, which means different sections of the podcast. You can see different
Speaker:pictures or graphics or hyperlinks, different things like that that go along with it.
Speaker:Another thing that they're working on, which I'm very excited about, is cross app comments.
Speaker:So meaning somebody can post on Fountain and it show up on one of the other apps.
Speaker:Castamatic, or I think Castamatic is one. I don't think I'm making this up. Castapod is the
Speaker:host. That's what I was thinking about. Podcast Attic, Podfriend.
Speaker:And no, Castamatic is one. I wasn't making that up. In fact, I use Castamatic. Podverse
Speaker:is the other one that I use. I use Podverse, Castamatic, and Fountain. I use all three of
Speaker:those. I use Fountain more often than not, to be honest. With Fountain, as you listen,
Speaker:you get sats. It's pretty crazy. And the economics of it do seem to be working.
Speaker:Oscar did a couple of long interviews here lately. I did one with Miramortals, actually,
Speaker:and explained how they're doing that. Part of it is people like me who want to promote their podcast,
Speaker:send them money, essentially, and in return on the homepage of Fountain, my podcast can show up as
Speaker:a promoted podcast. And you listen to it because it's like an ad, essentially.
Speaker:But it's an ad for what I think is very intentional purpose, and it's very unobtrusive.
Speaker:But you click on it, you listen to it, you actually get sats for doing that. I pay for that,
Speaker:of course, and you get a chance to listen to the show.
Speaker:Lots of cool stuff coming, though. And I would encourage anyone who's not using a podcasting 2.0
Speaker:app to check that stuff out. Newpodcastapps.com. Okay. But to wrap this up, you can boost,
Speaker:just like those people did earlier tonight, you can stream sats. Streaming sats is a great way to
Speaker:show support for a podcast. That's a great way, of course, to support podcasts like mine. So,
Speaker:anyways, if you like the content, I would love it if you would just tell your friends about the
Speaker:Generational Wealth for Cryptocurrency podcast, or whatever we end up calling it. Just say,
Speaker:Hey, I found this podcast. The guy's a little nuts, but he provides good information.
Speaker:And hopefully encouragement, which is something that I try very strongly to do.
Speaker:Thanks for being here. I hope this has been helpful. I would love to hear from you,
Speaker:and I do mean that. I'm on Twitter at McintoshFinTech. I'm on Mastodon.
Speaker:at macintosh at podcastindex.social. And you can reach me by email at macintosh enginewealthcrypto.com.