233. Deflation with Jeff Booth 

Jeff is the GOAT

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.

I probably listened to 50 hours + of Jeff Booth and I can listen to another 150 and still love hearing the same message!

Saifedean and Jeff Booth! This will be epic 😃

What a joy, two of the most confident voices in the bitcoin space bouncing off each others thoughts. Blissful introduction to the bitcoin standard.

Jeff Booth is GOAT, you should have him on a regular basis

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 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.

I already know it’s going to be good. If it stays decentralized and secure, failure is unlikely.

THANKS SAIF I REALLY APPRECIATE YOU AND JEFF ❤

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.

You two saved my arse!! Thanks for everything you're doing mate, really appreciated!!

Am I the only one who is completely mind blown by this conversation?

Great conversation with two of my favorite people.

Now that is a desert after big fat steak and 6 eggs.

I agree, Jeff is the GOAT

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.

Thanks!

Comparing this to our German Bitcoin RU-vidrs watching this talk feels like living in the future. We need nore people like Jeff and Saif!

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

The 19th century was 1801-1900 not 1901-2000 that was the 20th century Saifedean. We are now in the 21st century.

Kaspa is the solution of scaling that bitcoin can never do. It solves the trilemma!

Time to get on NOSTR Saife... !

Jeff ❤

Killer interview :)

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.

The visionary alongside Saylor.

"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?

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?

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.

By saying "19th century" then talking about the early 1900s, Saifdean meant the 20th century.

@45:39 I think we push USD to be the L3 "debt" layer, with something else as the L2 Instead

I didn't quite follow on Jeff's argument of attack on Layer2 making BTC and the dollar equivalent. Can someone explain this ?

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.

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?

TLDR - stablecoins on bitcoin are a threat to bitcoin

Great but waaaaaay too many ads

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.

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

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.

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?

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.

👎🏼the ads

33

what if every fiat currency have a stable currency 🧐 UAE dirham stable coin is coming i think

Nice moustache. Reminds me of someone.

How do you spell that layer 3? Fettimint, Fettament?

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!???

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.

Omg!

There is no they there is only WE

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.

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

The amount of ads during your podcast is insufferable. Get a job.

Every Jeff Booth Podcast is the same 🤦‍♂️