the strategy is they can plug into the senate race and with us thanks for having me on your show that says yes he says they're bickering isn't worth anything like france's gold but he had bothered to cash out a coin i'm going to say $50000.00 or whatever for a that actually that he used as i don't know. it's been worthless is it is it really that hard well there's a difference between the value and the price i mean mid-point certainly has a price because people are willing to buy it and so people value would in the sense that they think it's worth something and so they're willing to buy it. that's different from something that actually has real value intrinsic value i mean gold doesn't have value simply because people believe in it gold has value because it's a metal and it has properties that are very unique that other metals don't have that makes gold extremely useful so there's

a lot of demand for gold in the real economy not just jewelry which is one of the you know most obvious uses for gold but it's use in electronics and dentistry in aerospace because it has properties that other metals really can't replicate so you're always going to have demand for gold now the reason gold became a monetary metal in addition to a industrial metal and a metal for luxury goods and jewelry is because gold retains all of his properties over time. and so if i have some gold i don't have to use the gold today i can hold on to it and somebody else can use it in the future and it won't diminish and so it became a store of value because you know the value didn't go away over time and because it had other attributes it was easy to use as a means of exchange but because it doesn't have any of those attributes i mean big calling derives its value simply because people believe that of they own it

somebody else will give them more for it in the future but that believe. may go away in the future you know you confidence is a very cynical thing because if people desire bitcoin soley because they think the price is going to go up if they no longer think the price is going to go up they no longer want it and when the sentiment turns there's no model i mean the market could just implode that doesn't happen as something with real value like gold and people don't want to own gold because they don't think the price is going to go up there's a lot of people who need to buy gold regardless of what happens to the price so you have you know natural demand there's only one link like that as an assassin pretty much everything right mood copper consomme star or whatever all those things can be when i read that they are a is never that the hotter copper has value because again it's

a metal. that is used i mean every commodity has value because of what you can do with it what you use it for investments have value because of the returns that they generate real estate has value because i can rent it out and i can also live in it myself but apart from that i can rent it out and get in stocks have value because there are companies that have earnings and they can pay those earnings to me in dividends they can buy back stock but they can return value to me from their income that they generate bonds are on an investment because i lend somebody money they pay me interest they pay me back the principal plus they pay me interest but big $1.00 is a lot of asset and that sense of the word in that it doesn't throw off any type of return and it's not a commodity in that you can't use it for anything. now if people say well it's a digital currency well except it doesn't function as

a currency it's very expensive to actually use and it's very volatile so you can't really price things in it and it's too expensive to transact in it so the only use case you have left for big quine is to hold onto it and hope the price goes up but you know i hope it's not a strategy and eventually the price is going to crash and i think a lot of people unfortunately are going to lose a lot of money because they put their faith in a fiction writer to surprising me is that citizen of from just currency that's a bubble that sounds secondly it isn't hammered on saudi clearly still think investors into i mean i listened to. and says these claims that the dentist is invited you are going to trade it for things to currency and you know because your stuff what is it we're i think like a camel was i think that i don't own a big one and i had a i had some that were gifted to me that i lost so but i don't have anyone but i've

never actually bought any big point i mean. yeah i would it would have been great had i bought it a long time ago because clearly i could sell it and you know to a greater fool and cash out but you know i think that there are some wall street firms that were initially and correctly skeptical of bitcoin and now they're kind of been bracing it just because the public is into it and remember wall street is going to sell whatever the public is foolish enough to buy i mean they were manufacturing all kinds of dot com stocks during that bubble and they wiped everybody out they were busy packaging up subprime mortgages and selling them to their clients when there was demand for them and and that bubble popped so wall street has a history of getting involved in bubbles near the peaks just because they're trying to make a buck off of the you know irrational exuberance of their customers so i think this is no different when it comes to big line but you know whether or not we're at the

top clearly there's no way to know you know how many new highs of it going to make i mean it got up to 58000 and change as we're recording this i mean it's around 49000 i mean so was 58000 a top i don't know i mean maybe it's going to make another new hire several new highs but you don't know but also maybe it was the top and it's just going to keep going down from here you know at some point it will be the top and the bottom is 0 you know and that's probably where as go it. i remember it ever since they did in 2008 financial crisis which has lost that house and the state says the bakery is another bubble of sewer and it will burst sunday just as. you sat under what circumstances do you think it will happen well again the house financial crisis wasn't caused by the housing bubble the federal reserve inflated the housing bubble

with the help of the u.s. government and what caused the financial crisis was all the leverage in the housing market because a lot of banks and other is either you know investors have loaned money to people to overpay for houses and those loans went bad when the real state prices went down and it was that that you know led to the financial crisis now you don't have that much keep borrowing with that going to mean there are some circumstances where i've seen people borrowing money against their bitcoin but by and large most people you know aren't leveraging their bitcoin and that's that's a good thing because that means the losses won't be as severe when this bubble pops but i think that the source of the bubble is still the same it's the fed you know it's ironic that all the people that are in the big coin bubble you know talk about the other bubbles that the fed has inflated without recognizing that they're in a bubble themselves i mean it's like

a bubble is generally in the eye of the beholder nobody can tell their own bubble and so you've got all these people who are involved in the crypto bubble they can't see it it's very ironic because the federal reserve inflated that bubble too because people are saying that well you should buy big coin because the fed is printing all this money because all the q e we're going to have all this inflation and so you need to buy big point but because it doesn't provide a hedge against inflation because big one is nothing i mean goal is a hedge against inflation because gold has a historic price relationship with all the other commodities like we corn. so i beans copper or oil and those are the prices that are all going to go up with inflation and so if you hold paper dollars then all those commodities will get more expensive but if you hold gold the price of gold will go up along with the price of all those other commodities so you can maintain your purchasing power but because it is not a commodity it has no price relationship to any other commodity and it has no use

case so you have no idea whether or not anybody is actually going to want big quon in the future so you don't know that people are going to be willing to sell you their corn or their soybeans or their copper for your bit going you know they'll be willing to exchange it for gold because they've been doing after thousands of years since morning sickness is chasing him a half or 2 of the economy. you know. bursts and there is a crisis where loves it because that is a sense because one is not a big part. but i do think that big corn is also. part of the general bubble in risk assets so and if you look at the correlation between big calling it trades a lot more like you know like a tesla or all sorts of other nasdaq stocks than it does you know gold so big point is a risk asset and it's part of that bigger bubble so if bitcoin crashes all along

with all these other risky assets then that is you know that is the problem but midpoint in isolation if that coin were to go down and nothing else then it's only going to be a problem for the people who own it. and of course most of the money that's in decline is just on paper right because it has this huge market cap you know most a trillion dollars but a trillion dollars didn't go into big quite you know that's just the paper value of the appreciated that quiet so when the price collapses people most people aren't losing the actual money they're just losing the money they thought they had but they never actually had it because they never saw all so a lot of this paper wealth was going to disappear but yes people that put real money into big coin that bought a lot of bitcoin at 30040050000 yeah they're going to lose a lot of money and the money they lost was the money that the other people gain by selling them those overpriced big clients and their real winners in

a bit calling bubble are the people who got it early and cashed out which of course is the case with every bubble be able come in early before it's a bubble and then it hypes up and then they're smart enough to sell but a lot of people aren't that smart and they write it all the way back down and take a break right now that will continue talking to parish stuff chase economists and global strategists to say capital what's the difference he stay with us.

according to secretary of state playing games china is the only country with the economic military and technological power to seriously challenge the stable and open international system. and relationships that make the world work the way we want it to is china really a threat to washington's system. tactics that can be used to get innocent people to confess to crimes they didn't commit i don't even think people in the us really get that the police are allowed to lie to the person who falsely confessed actually came to believe the lie that they were told about their own behavior once a false confession a stake in the case is closed and nobody really can tell the difference between. them one that is a. lead

. back with interest shifts stuff after his economists global strategist of the year this is the capital peter i see they sense a vast thing when for instance and they're already creating their own crisis is that corporations try to temper the fact or do they see. this i think governments like the concept of taking their feet out paper currencies and making them digital i mean number one it is easier i mean what block chain is shown us and bitcoin i mean to the extent that if it didn't have the problems of the high cost is that you know you can exchange value i mean if i had

a. digital currency the cost of transacting in that currency would be very low and you know already or nothing and merchants can easily accept payment in digital currency rather than you know a credit card or a paper currency so i think governments want to be at the forefront of that but i also think governments look at this whole currency as a better way to take more control over the currency and over their citizens which is something that i don't like about it because when we have paper money you know if i have you know a few $100.00 in my wallet i can spend that money and the government doesn't know that i've spent it the government doesn't know what i've purchased that doesn't government doesn't know who i bought it from so they can really spy on me but if

they can get rid of all the paper currency and the only way i can buy something is to transfer digital currency they know everything that i'm doing they can track every purchase i make they know exactly what i'm buying they know who i'm buying it from and i just don't like governments having that much information about the citizens i thing. it's you know it makes it easier for governments to become corrupt and become oppressive and then it makes it a lot harder for the citizens to rise up and to try to overthrow a correct a corrupt government because now the government knows everything you're doing and they can easily target you they can put you in prison in you know you know as a political prisoner so i just don't like giving governments this much power to know so much about all the people you know that they're governing. very much currency. here in response to 2000 and classism people's trust in traditions that

national institutions are shaken and enabled peer to peer transaction you know bank there or a middleman cell i'm fascinated to currents is killing the initial currencies how do you 1st say it and the idea of no middleman or a precise well of course i mean that was the original appeal of bitcoin was that it could be actual currency and you wouldn't have to go through all the regulatory hoops you know if you want to transfer money from one bank to another there's all sorts of k.y. see an anti money laundering laws and it's complicated and with bitcoin it was like i'll just send it to a friend and nobody has to ask anything well you know the government doesn't like that and so more and more regulation has come on these exchanges and i think a lot more regulation is coming on bitcoin that is actually going to make big calling a lot more burdensome if i wanted to send somebody big coin in the future it could

be a lot more difficult and a lot more expensive than sending traditional currency because the government really wants to crack down on these on these transactions and meanwhile the other problem with the big point is when very few people were using it then the cost was minimal but as more and more people. on the network the cost of using it actually goes up it's not like you know you have the economies of scale which you would have with most businesses the more people that try to use big point the more expensive the transactions become which is the biggest problem that you you can scale it up i mean so that it is no way it could be used as a currency which is why they've tried to just reinvent it as a store of value but if it doesn't have any use and it doesn't have any real value then what are you storing you know you can't store price i mean that's all big coin has a price but i can't store price because price can change a price can collapse. but since our financing his official currency

isn't the more interested they could exist clyde simply sent east of digital currency from green and he made history. changes some of the cost of the current more interesting. is that i and i don't think that we're going to keep seeing more and more of these digital currencies and it is thousands and thousands of them now i mean the only ones that would work would be digital currencies that were backed by real things and that would be fine. and you could do that the problem is you know the governments and all the regulations may make these businesses unprofitable you know that that is that is the real problem in that we have the technology to develop medium of exchanges of money digital there's no money backed by gold 'd or silver or whatever you want to back it by you know you can you can back a currency by anything but the key is it has to be backed by something to give it

a real value. and there can be plenty of. businesses entities that have good reputations that people could trust to be the deposit terry for those assets that underlie those crypto currencies and you know putting them out there and making them available for the public so the public can choose the money that they want to use i mean that's all there the only problem is government government doesn't like competition government wants to maintain a monopoly on issuing currency they don't want private sector to issue currencies of a superior value because currencies that are issued by governments you know they're extremely risky because they governments can print as many as they want and they can destroy the value there's they're not tied to anything so if the private sector started issuing a superior currency that was backed by something more and more people would want to

use it and the governments don't want that so the governments are putting all these regulations which may make it impossible for the private sector to compete with government because of the cost of compliance. if god is control over finances nuisance as a result of the loss of the money printing monopoly will that benefit in a regular general only just and more financial turbulence than we have now no i mean if we return to sound money would benefit everybody particularly the average joe you know we would have much stronger economies if we return to sound money we would have smaller governments which means governments would impose smaller burdens on the private sector so the private sector could be wealthier and there'd be more opportunity to be more economic growth and that would benefit the average person

the most i mean the rich are rich and their lives are are pretty good and they can afford the cost of government it's the middle class and the poor that are affected the most by the burden that government places on the economy and and so they would feel the effects of being liberated from that burden the most to the extent that we could shrink government and you know alleviate you know the burden that that it had played places on society. since digital currency requires different aspart fees that the traditional financial institution will see for instance tasha coming in and playing the role of the new they. will develop their own coin will they become sas competitors well i guess a lot of companies could do it just like you know you have airlines that issue frequent flyer miles i mean obviously those frequent flyer miles could be tokenized digitally and could circulate as many of exchange because everybody who flies you

know well i could use them for airline mileage of course they devalue every once in a while the airlines say oh now you need more miles to buy a ticket so they're not like fixed you know if they made him fixed and they say we're never going to change this then they could be an inflation hedge too and it would make them better as you know as meat means of payment but i don't know you know what companies i mean you know you have facebook out there that had a trial balloon about launching their own digital currency that initially was going to be backed by a basket of currencies i mean i don't know they should have picked gold that would have been a much better or for that currency than a basket of other fee currencies but now i think maybe they're thinking about issuing one that's only backed by the dollar thinking that that will be easier to get through the regulators that libor project but again this who knows i mean they launched at a couple years ago and so far nothing has come of it so i don't know i just they didn't get the regulations are going to be so strike from governments that it's

hard to say what's going to happen but absent government sure the private sector would be very innovative and there'd be all sorts of things that would be happening and the public would be able to choose and that would be good but the government is interfering in that just like they interfere in a lot of things and so they're preventing the benefits of the free market from flowing to average people. i still like what i have to look at it i buy things and pay taxes and mongan in the france who are a money battle line i care whose he is than. the man on the coins and the more do you think these are the last days of cash ready comments yeah i mean clearly that's going to happen but you know it would be much better if we're all even though we're transacting digitally that we're trying to actually have something real that at the end at the back end of those days are all transactions lies real money which would

be gold and in fact a lot of people think oh gold is you know that's the stone age you know we've evolved you know no it's not i mean gold you know gold was an evolution you know be it before we had all we had barter but. the market can make gold even more efficient as money because initially you know we didn't have coined people figured out how to make a gold coin and that was more efficient than a big car but then people had gold at the positive oris it banks with blacksmiths and then we started issuing notes that were backed by the gold but the gold was still there giving value to the paper knows that it that it backed up and so the next evolution of that process would be to have a digital medium but ultimately to have gold. backing it up so that you have something real that you can hold as a store of value and that governments can't debates. so peter is money 6 100

children most of the great eastern what is a really mate if it's a pound or a dollar and or is iran is virtuality of money they sure past as well towards like the single currency well now i mean what gives those 5 currencies value is the confidence among the public that people will accept. those currencies in the future for the goods and services that they're offering and and you know to the extent that that confidence is lost because governments are printing too much money. then the currencies will collapse and they won't have any any value anymore they don't have any intrinsic value but they do have. a price that people you know because they are used and people have believe in them but of course you have governments that mandate them as legal tender so that helps them and governments required taxes to be paid in those currencies and so you have no

you know you have you need those cards used to pay taxes so people have to accumulate them. but even even that if they print too many. know is going to want them. and that's actually where we're headed and that's why i think that we're going to come to an end of this fee out system ultimately we're going to have to go back to sound money once the public loses complete confidence in the system. thanks a lot for his wonderful insight into the wrong thing i think i have. it's really interesting team to see what it's going to have and the nearest teacher and i hope we get to do this again maybe for your science and. reason about today. well maybe well well the way valve on may i think something could happen pretty substantial you know it in a shorter time frame and i one year who knows i think this is going to be this is

going to be a very interesting year 2021 and then i think you are either one or. then there are a great. some control from middle class to homeless muslim are very hardworking people who want to get ahead that is either have some some health issues or have some of it out of strict about luck the whole time joel moon told me his pay for a place to live and missing just a month's rent can get you

a victim to gunpoint if anything bad happens to any thing that just throws your budget off slightly. you better catch up real quick or you're going to have a judgment of possession against you and get addicted anyone that's homeless is treated like garbage people look at you like a monster or someone bad or you chose to be there most of the time it's not the case see how it is to be pull in the world's richest country. join me every 1st day on the alex salmond show and i'll be speaking to us of the world of politics sports business i'm show business i'll see you then. as you read the stand had to be here from us and. our own move from what i saw. a good armor on our show at the from there are rather tough it out before for

america. i'm going to let him but i'm going to catch him then you cut him and kick and nail him what i had flu china for truffle that it. won't work then i'm on my machine little so i know it does. and mind the. members of the hay from the innocent to it. get its whole food place choice on yours or you haven't failed to chime in syria has said. for you she ought to have a. model for that in africa will fuck around with mr hates it for jim and then oil for food are found in the course. of the.

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