Dec. 19, 2017 - Steve Pieczenik
06:19
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| Hi, this is Dr. Steve Pachank, and this is Steve Talks. | |
| Hello, I'm Dr. Pachank. I'm Dr. Pachank. | |
| Today, I'd like to talk about Bitcoin. | |
| It's become quite a phenomenon around the world. | |
| It went from almost no value up to $18,500. | |
| And let's assume this is a Bitcoin, which it's not, it's a Welcome to my show! | |
| I need 25,000 computers in China, one-third the amount of coal that's in both Inner Mongolia and Xinjiang province. | |
| I need one nuclear reactor equal to the amount of energy that comes out of Denmark, and the amount of coal and energy and nuclear power that might come from 159 different countries. | |
| In other words, in order to create this piece of Bitcoin, which is not really a metal, but is a series of digitalizations and blockchain numbers based on binary numbers 1 and 0, we have to be able to produce an incredible amount of energy In order to get to those digitals and digitization that is required to go from computer to computer without government intervention. | |
| Now, the people who espouse cryptocurrencies are the ones who say we shouldn't have government in it. | |
| Ironically, they have created an entity which is totally dependent on the government. | |
| And I'll give you an example. | |
| In Iceland, you need hydroelectric power in order to have a bitcoin. | |
| And if you don't have 24-7 hydroelectric power, which is controlled by Iceland, you will not have the digitalization that's required for the Bitcoin. | |
| Similarly, as I told you in China, if you don't have the coal that generates the digitalization in 25,000 computers, you cannot have the computer analogs and numbers that are required to have a Bitcoin. | |
| Or simply stated, in order to create a viable Bitcoin in China, it equals the amount of energy to fuel over 13 million American households. | |
| Now, let's talk about the American currency. | |
| What both Bitcoin and the American currency have in common is perception. | |
| What is the relative perception of the entity which we call tender? | |
| In the United States we have the five dollar bill and we have the one dollar bill. | |
| Technically, we say in the United States the $5 bill is five times the amount of the $1 bill. | |
| In reality, there's nothing different between the $5 and $1 bill. | |
| There is no gold behind it. | |
| There's no silver. | |
| There are no digits behind it. | |
| In fact, it's nothing more than a piece of paper printed by the U.S. Treasury... | |
| And it says, in fact, it's a legal tender of the United States government with the full faith of the United States government, which in reality means nothing. | |
| So it's equal in many ways to the Bitcoin notion that we can have digitalization, but we need government-controlled power in order to make digitalization. | |
| So what really creates a tender or the value of a transaction is the notion of what's behind the republic. | |
| The reason we are effective in the United States is that we can print these papers as much as we want, as long as we have our own printing press. | |
| So I can have a printing press that will print five dollars and convince you and me, that's called self-delusion and psychological manipulation, that the five is five times more than the one. | |
| The problem is in Europe, the EU controls a whole bunch of countries which do not have their own printing press. | |
| So when the EU is in trouble, as for example when France goes into a deflationary mode, Germany in turn has to increase the printing of the EU in order to make sure that the currency value in France is equal to that of Germany. | |
| The problem, however, is that Spain and Italy and Portugal are always going to be in the lower tier of the value of the EU. Why? | |
| Because they don't have their own printing press. | |
| So the notion of a world currency is basically absurd and counterproductive. | |
| The reason for that is because in the Bitcoin, we need government intervention. | |
| And we also need a currency which will not destroy the planet Earth. | |
| And as many of those who have been involved in the Bitcoin factories, particularly in China, where they have 25,000 computers creating digitalizations that are required for Bitcoin, they say, God forbid we would have to have a Bitcoin for the whole world because the planet will be destroyed. | |
| So ironically, the Bitcoin It's the entrance for the millennials to destroy our planet. | |
| In contrast, when we have a paper currency or a coin currency, we basically project a certain value onto that currency which is not real. | |
| It's perceived as real only because the government that surrounds us and represents us says, look, we can back it up and if there's any problem, In short, let me quote Nietzsche. | |
| When the gods are cruel, they grant you wishes. | |
| Both in the case of the Bitcoin and the dollar, be careful for what you want. | |
| But particularly in the case of the Bitcoin, if that becomes a world currency, we will have a completely destroyed environment. |
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