The Real Problem With Money, And The Solution Is...

change as we look across through these three lenses. Now each week, I'm trying to bring you some new education so you can look at these things differently, you can understand them in better context of what's going on in the world today. Of course, I try to bring you the latest breaking news so you know what's going on. And when I can some interesting guests, you can hear some different perspectives other than just myself. And there's so

much to learn. And one of the things that I try to talk about on a regular basis is trying to help you understand what's going on. And we understand things by taking complex subjects and we make them easy to understand by taking them down to what we call first principles level. They're most basic, and once we understand them on the first principles level, then we're able to understand them at a more complex level. But we're also able to start to formulate our own ideas off of them.

If you don't take the time to understand things down to the base layer, first first principles, then you're never really gonna understand them. You'll never be able to think about the money, and you'll never be able to formulate your ideas. All you'll be doing is just partying headlines

that you see over and over and over. Now you don't want to do that, do you, because then you'll find out just you know, repeating a headline, and you won't really know what you're saying, and then someone's gonna be smarter than you and they're gonna make you feel dumb. And you don't want that to happen. And I certainly don't want that to happen to you. So we'll try to break these things down so you have that education

here on the Mark Moss Show. Now you know, I was recently last weekend, I was speaking at an event in Las Vegas called Freedom Fest. It was an awesome event. Now I go to a lot of events. I've probably going to weigh too many events recently. I'm thinking about scaling back on some of my speaking engagements. But I really like this one because it was something that I don't normally do. So I'm typically at financial conferences, which of course that's my niche. So you'll see me at

financial conferences. Like a couple of last month, I was in Miami at the Rebel Capitalist Live. Of course my own events that I do, market Disruptors Live. We have tickets going on sale for next year's event, Market Disruptors Live dot com. You can check that out, um. But also you know other financial events, bitcoin events. The Bitcoin Event in Miami, it's the largest bitcoin gathering. There's about forty thousand people there, and of course yours truly. I

was a speaker on the main stage. They're talking about bitcoin in Macro. I was also I worked the news desk for a couple of hours. So anyway, I'm at those types of events finance, bitcoin, et cetera. But this Freedom Fest was something that I don't normally do. It was just about freedom. That's a big word. As a matter of fact, today it's sort of a dirty word. I can't believe that I'm alive to see that some people think that freedom is like some crazy fringe right

wing or something like that. Uh, freedom is dangerous, it's violence. I would agree it actually is dangerous, um to let people be free, but that's part of being free. So anyway, Freedom Fest, and it was about all types of freedom. So there was you know, quite a few um uh libertarian groups that were there. As a matter of fact, I was invited by Joe Jorgensen. Shout out to Joe if you're listening, Joe, Um. She is the I believe, the only female who's ran for president two times, and

she's ran for president under the Libertarian Party. So Joe Jorgenson invited me there and we did a panel on UM titled uh the Price of Money. It was interesting panel UM. It started out really well. It kind of started going into this kind of like back and forth war against a bunch of different cryptocurrencies was one I wasn't super interested engaging in. But the initial price of

money I thought was pretty interesting. And so then I got to speak to lots of people there at the Freedom Fest, and like I said, there was people from the Liberal Libertarian Party. There was people there for monetary or money freedoms um. So there was gold guys and investment guys um. And then there was health freedom. So then there was some of the big names that you might know, like Dell Big Tree or Dr Robert Malone. They're on health freedom, so all different types of freedom.

One thing that Del big Tree said, if you guys don't know who Del big Tree is, you should definitely check them out. Um, he has a lot of passion. I love a guy with a lot of passion. And he was he was on a rant and he was on stage and he said, I don't care about your money. I think that was kind of a point to bitcoiner or gold I don't care about your money. I don't care or freedom of money. I don't care about freedom of guns. In your Second Amendment. He said, this is

the battle of our lifetime over your body. If you don't have freedom over your own body, you have no freedom at all, which was an awesome point that he made and one that I would agree with. So it was great to do that. But anyway, back to the point. So I with on this panel and I'm walking around the conference. I'm talking to all these different people who are all from different areas of life, and they've come

for all different reasons except for all about freedom. And I gotta asked a lot of questions, and um, I found that there's just this massive, um misunderstanding, but also yeah, misunderstanding. I guess lack of understanding. Maybe even is a better term of what money even is. And I know that sounds kind of basic, and don't turn me off, Ye, don't turn me off yet. I'm gonna I'm gonna back it up, right. So what is money? Well, I know

what money is. I can open up my wallet, I have somewhere, I can go on my ban account, I can see how much money I have. But what is it? How is it used? What does it mean? And uh, understand that is the key to understanding what the heck is going on today in the world, with the foot of reserve and printing more money and raising interest rates and the economy shrinking and all these things. So there's

that whole thing going on. Um, so you need to understand what money is to understand that, but also, um, how we could fix that, how we could have better versions of that, and what we might have in the future. And if you don't understand those basic things, then you just really don't have that first principles understand to build that on. So I thought, you know what, I'll take some of these questions and I spent hours and hours and hours talking to all these people there at the event.

Let let me let me talk about this to my audience here. UM, that's you, that's you listening right now, and and we'll try to break that down. So understanding money is is difficult. I'm not gonna go all the back to the beginning, or maybe I will real quickly. Let me let me go back to the beginning, real quickly, and then we're gonna advance past that. So if you're if you're if you know what I'm talking about, stick

with me. I'm gonna go through it real quickly. By the way, if you're just tuning in, you're listening to the Mark Moss Show talking about what I call the decentralized Revolution, looking at through the lens of politics, finance, and technology and as the world is changing right before our very eyes. And so what is money? Money is a medium of exchange. Money is something that communicates value. Um. It communicates um, what people want and what they don't

want through something called price signals. It coordinates economies. So we could say it's a communication. We can say that it's a store of value. I don't want to get super philosophical with you here, but Basically, it's a way that I can store my value to be used at a later time. So I can store my wealth, my value, and I can use it to buy other things medium exchange. We don't need money, we don't. We don't want money.

Now you might be go, what do you mean? Of course I want money, I want I want a bunch of money, as I can, Well, you don't really want money. What you want is the things that money will buy you. That's what you want. You want the things that money will buy you. So money is just that medium medium exchange. It allows us to get what we want. It also, as I said, stores that value. So for example, let's just say that I have to work for four hours a day to earn enough money to buy the food

that I need to stay alive. Well, let's say that I decided to work an extra four hours. So now I'm gonna work eight hours that day. So I work an extra four hours. What do I do? How do I store that energy that was four hours that I worked? Well, I could put it. I get I get paid in money,

and I hold that money. Now that four hours, that that extra that I worked, I'm storing it in money and tomorrow I could decide not to work tomorrow because I have those four hours saved up and I can buy that food that I need for the next day. That makes sense. So now that we have a very basic understanding of money, what it's used for, how it works, we also have to understand that money is emergent. So what do I mean by that? Well, again, we don't

want money. What we want is that things that money will buy us. So in the beginning, we didn't have money. We just had barter. I would trade you a chicken, you trade me a goat. Right, if we're on a deserted island, you'd have coconuts. I'd go get a fish, and we trade for the things that we really want. But what happened is barter is extremely inefficient and it doesn't scale because you might not want my coconuts, my fish,

my chicken, or my goat. And if you don't want any of those things, or the goat or the cow is too big, it's not divisible enough. You only want a little bit of the cow. But I only have a whole cow. And so well, if you don't take my if you won't take that, would you take this instead? And that thing becomes a medium of exchange, and eventually enough thing has become a medium exchange that one merges.

I'm gonna come back with that and more than we're gonna go into talking about different types of assets, assets versus liabilities, commodity money, why we need debt for velocity, the revolution that has happened that we're witnessing right now, and what most people are missing and what you need

to know in order to succeed. You listen to the Mark mo Show talking about the decentralized revolution, talking about bitcoin, cryptocurrencies and talking about the through the lens of politics, finance, and technology. And today we're talking about money and new forms of money and why you need to understand this. Um, I'll be back with that and more in a minute.

Don't go away, all right, Welcome back. You are listening to the Mark Ma Show as we talk about each and every week, the decentralized revolution, the way the world is changing right before our very eyes. Of course, we look at it through the lens of politics, finance, and technology, so there's more context into what's happening today. A lot of people talking about politics, but what does it mean

in the bigger context of things? That a lot of people talking about money or finance or investing, but what does that mean in the bigger context? And of course I'm bringing it all together there for you, money, finance, politics, technology, and the decentralized revolution of course being led by bitcoin, the decentralized technology. Now we were talking about before the break,

talking about what is money? And more specifically, so you can understand what's going on today with inflation and the FED and how are they going to print more money? And what's happening with Europe and the bonds and all of these things, and so you have to understand them at the most basic. As I was saying, I was speaking at the Freedom FESTUS last weekend, and this one piece of information, this seemed to be the biggest stumbling box for everybody. So I thought we'd talked about that today.

So we talked about what is money. I'm not gonna go back and rehash that. If you missed it, you can you can check it out on the podcast check out Mark Moss podcast. Just search that on the I Heart Radio app. Of course you can check it out on iTunes anywhere that you listen to podcasts. Oh and by the way, while you're at it check me out on social media at one Mark Moss. That's right, at the number one Mark Moss. Now, um, so what is money? So? Um,

money is like this favor. It allows me to store my value so I can spend it at a later time. So we got past that. Um, what what we use as money is emergent. We used to do barter because what we really want is the food or the goods or services, and we'd barter, but then we didn't have Um if if I didn't want my chick, if I didn't want your chicken, you don't want my goat, we didn't have a deal. So we used a medium of exchange.

We trade this instead, and eventually enough things became used as a medium exchange where one thing emerged as the best, and of course that was gold. Gold was money for five thousand years. You have to have the right attributes for it to be a good form of money. So, for example, it needs to be portable, It needs to be durable, It needs to be divisible and needs to

be salable. It needs to be fungible. Probably gonna spend a bunch of time breaking all of those things down, but durable makes sense, right if you used bananas for money, Well, within about five days, those bananas are rotten, So it wouldn't be a very good form of money. Any type of food wouldn't be a good form of money. It's it's not durable. It also needs to be divisible, so if it was a cow, a cow wouldn't really work because you can't really break a cow down into small pieces.

It also needs to be fungible, which means one is always worth one. So for example, you've seen like the oldest, dirtiest dollar bill you've ever seen that has tears in it, um is still worth the same as one brand new crisp dollar bill. They're they're fungible. And so of course, uh, animals aren't fungible, right, things like that aren't fungible. Baseball

cards aren't fungible. Um, which is and then and then finally, uh, we need to be sailable, so enough people have to be willing to take it, so it could have all those attributes. But if no one's willing to take it from you within, it's not a very good form of money. Um and and uh and that that kind of sums it up. And that's why gold really fit that bill. The problem with gold is not real portable. Now I can put gold coins in my pocket and you and

I can exchange. That's fine. But in the information age, gold doesn't work. I can't send you gold over zoom and so, um, it didn't work. Actually gold failed along longer before that, and it failed because it's not portable. And this is an important piece to understand. So, um gold, because it wasn't portable, I needed to pay somebody. I'm in New York, somebody's in Germany in the four hundreds, or what do we do? Well, we don't really have

a deal. And what we could do is we could put a bunch of gold on ships and we could sell it across the Atlantic. But then the ship's crash and they get taken over by pirates and all that. So that's not very that's not very very good. So what did we do? How did we solve that? Um? Now, real quick? That would be what we would consider commodity money. So commodity money would typically being that there's a there's an evolution, and this is a big piece that people miss.

There's an evolution to this, and so a lot of people are very quick to dismiss new things today because I don't know, it's it's not that today. So bitcoin isn't the best medium exchange day it's too volatile. Okay, well maybe that's today, But does that mean it will always be that way? Um? If we saw a little oak tree in the forest, UM, and I said, hey, imagine this oak tree is gonna be a harder foot one day, and you're like, no way, look how small it is. I'm like, but it has the attributes. It's

it's an oak tree. But no, it can never be that way. But you have to understand things can evolve, UM. And so things will typically evolve starting with a collectible. Hey this is pretty cool. It's collectible. Let's collect it, right. It's a cool it's a shiny rock, it's a cool feather. Um. And then eventually things can become stores of value where if enough people collect them, then we store wealth there.

And you see that with rich people today they store their wealth in um collectible cars or or paintings or things like that. UM. And then um, eventually it could evolve into a medium of exchange, but only if it has those qualities that I've given you before. Now, a Mona Lisa painting is a collectible. UM. That has become a store of value. People are putting their value into those things, but it can't really become a medium exchange because it doesn't have the money properties. It's not divisible,

it's not portable, right, it makes sense, it's not fungible. Well, there's only one mona Lisa painting, um, so it's it doesn't have the in this quality, so it stops evolving there. And it's important to understand that we've had commodity money in the past, So commodity would mean that it has to be something that's useful or needed, and so gold was used for electronics, right, there was a need. You're gonna listen to people like Peter Schiff tell you that

gold has intrinsic value. There's intrinsic value. Their money must have intrinsic value. And I'm surprised that Peter Shift says that because he's a very strong Austrian economist, um, and he should understand that there is no such thing as intrinsic value. That all value is subjective. All value subjective. If I had a billion dollars of gold, but I was on a deserted island and I had no boat, no phone, no food, no water, nowhere to spend the money.

That gold is worthless. It's completely worthless to me. As a matter of fact, it could be a liability because now how do I even carry that around on the deserted island, So it's worth it's worth nothing to me. There's no intrinsic value to it. Now you might say, well food, Then food would have intrinsic value, because if you had it on the deserted island, that food to be worth a lot. Yes, But last night at dinner, I threw my leftovers away. That food had no value

to me, see what I'm saying. So it's all subjective. Now, um, you know, for those leftovers, if I was hungry, I mean, if I was really hungry, maybe to be worth money less than what it would cost me to go buy the full meal. So let's say I was a homeless you know, homeless or whatever, and it's a thirty dollar steak. Maybe I'll pay five bucks for a piece of that steak. But if I was on that deserted island and there was that piece of steak, I would give my entire

life savings for that. So again, value is subjective. Hopefully that makes sense and you have to understand that. Uh, and because of what we have today. So money started out as commodity money gold, it had value, and then it had money no as properties, durable, portable, divisible, etcetera. But then something changed. And this is the key piece to under stand, because if you can understand this key piece, then you can understand the revolution that we have today.

More importantly, you can understand what we're going to need to transform the world. This is a very key piece. And what is that, Well, that's the portability peace. So we live in the information age today. We don't live in the physical agent anymore. And like I said, we use zoom. I can't send you money over zoom. So in order to get that gold or any any commodity of money for that matter, to become more portable, we had to do something to make it have more velocity.

You've heard this term velocity of money. So in order to get this velocity of this money, we had to do something. But that is the crux of the problem. That's where everything comes off the rails. So I'm gonna explain that to you and more so you can understand what what's wrong with our money and what we need to solve this thing. I'll explain that to you and more. You listen to the Markmas Show. By the way, we're

talking about the decentralized revolution. We're talking about the way the world is changing through the lens of politics, finance, and technology. Of course, we're talking about bitcoin, and we're talking about money today, what it is, so you can understand that, you can formulate your own ideas off of it, so you're not walking around like a mindless parent party and everybody else's thoughts. I'll be right back with that and more in a minute. Don't go away, all right,

welcome back. You are listening to the markma Show, always talking to you about the decentralized revolution, talking about the way the world is breaking apart and changing right before our eyes, which of course is important to understand what the heck is going on today more importantly, so you know what comes next, and of course we're talking about it through the lens of politics, finance, and technology. Of course,

we're also talking about bitcoin. As you might imagine. Now we're talking about money so you can understand the problems that we have today and formulate your own ideas off of that. We went through a bunch I'm not going to recap it. If you've missed it, don't worry. I got your back because you can catch me on demand. Just search Mark Moss podcast. Find me on any of your favorite podcast players, I heart app or I Tunes or whatever. So anyway, here we are, Um I was

I left you at the cliffhanger. If you're still with me, I left at the cliffhanger. And the reason why commodity money failed commodity money gold. The reason why it failed is because it was not portable enough. And so in order to move the money faster, we had to do something in order to get velocity. You always hear about velocity of money. The the economist, the Federal Reserve tell you that the velocity of money is too low. And so in order to get the money to move faster,

in order to add velocity, they to do something. And that's something is they had to add debt on top of it. So gold is a base layer, it's settlement layer. If I have the gold, I have the gold. No one debates that I have the gold. They can see it in my hand. And if I hand you that gold, you have the gold, and we see it in your hand. And nobody debates that. That's in the physical world. The problem is it's very slow. So if I want to send it to you in New York or across the sea,

it's very slow to get it there. So in order to get it to go faster, we had to add a second layer on top. And that second layer was debt, a liability. So what do I mean by that, Well, now what we do is we put the gold in the bank. So now I don't have the gold and you don't have the gold, but neither of us have the gold. What we do is we put the gold in the bank, and now the bank has the gold and they owe me the gold. So instead of me having the gold and me owning the gold, and I

have the golden, everybody knows you have the goal. Now the bank owes it to me. It's kind of the same, but not really. Obviously, if I have the gold, everyone knows I have the gold. As long as I can secure the gold, that's my gold. But if the bank owes it to me, there's a chance I don't get that gold back. There's a chance. Now, each of these banks have their own different risk rewards. Now, if I want to send you the gold in New York. Now

it's very fast. So the bank just credits. They say on their ledger, on their piece of paper and their computer thing, they say Mark no longer has the gold, and now you have the gold. That's it. It's a ledger statement, very quick. So in order to get that velocity, they had to add debt, and they did that and that's how gold scaled. The problem with that is now we have to trust. Now we have to trust the bank to keep track of that gold. We have to trust that if they say I if I have the gold,

that they say I have the gold. They don't arbitrarily just say that you have the gold. We also have to trust that they haven't done something with the gold and maybe don't even have any gold at all. What if they say you have the gold and say I have the gold, but they don't actually have the gold, like fractional reserve banking sort of. We'll come back to that. So, UM, that's exactly what happened. We had to introduce debt, and that UM then lead to these paper gold certificates. So

those were claims on the gold. Now anytime I want I can take that paper claim, I go to the bank I could get that gold. It was an IOU and that's how that works. Now, what happened is eventually people started trading those gold certificates around enough where they started to think they were money themselves. And eventually and semny one, the government said no more gold. Now you just have paper. And so that's where we get the term fiat money. And a lot of times people think

fiat means fake or something like that. Now the word fiat means by decree, meaning it has value because we say it has value. So again, remember money, gold emerged. Money is emergent. Gold emerged as the best form of money. And this is a key piece to understand gold has value. Because we say it has value, we assign value to it. There's nothing backing gold. Gold is just gold, there's nothing backing it. But the debt has to have something back

in it. So when they gave me that paper gold certificate that I could go redeem for that gold, at some point, what was backing that claim? What was backing that claim that I was holding, Well, it was backed by the gold that I could go redeem for that paper gold certificate. But what's backing the gold? Nothing? Nothing backs the gold. The gold is just the gold. The gold is the asset. It's a physical assets, a key

piece to n understand. The reason why it's a key piece to understand is because people would ask all the time, for example, like well, what's backing bitcoin? And again that just shows that there's a there's a complete lack of understanding of what money is. Only debt needs to be backed by something. For example, Um, you might own a home or probably you own a car. Right, you want to you own a home where you own a car, and you probably have a loan on one of those assets.

And the bank, some bank is holding the note to your house or to your car, and they hold that on their books as an asset. What's backing that asset? Your house or your car? Right? If you don't make your car payment, you don't make your house pay, what are they gonna do Where they're gonna take that piece of paper, They're gonna go claim and they're gonna take your ownership of your house or your car. That makes sense. So only debt needs to be backed by something. What

backs the house? Nothing? It's just a house. It's just a house. What back what backs a banana? Nothing? It's just a banana. Now, if I issued you an I owe you saying I owe you a banana in the future, you had a claim for it. What backs that claim? Well the banana. See how that works. So when people say, well, what's backing bitcoin, nothing's backing bitcoin, just like nothing's back in gold. Now, some people would say, well, Mark, that's

not true. Um, energy backs gold. Right, they had to use earth movers and dig up ground, and they had to pull the dirt, the dirt on the ground and sift to get the gold out, and they had to refine the gold, and so there was great expense that was spent. Energy was spent, money was spent, time was spent, Dollars were spent. You know, maybe it was dollars to produce that ounce of gold. So all that time money energy backs the gold. Well, yes and no. But we'd

also say the thing about bitcoin. So bitcoin has miners, and there's electricity, and there's man hours and all those things. And you have a cost to produce a bitcoin as well. So it's it's in important for money to have a true cost, no doubt, which is why the fiat money system is so wrong. Because I can just arbitrarily click a button produce more money. So money does need to have a true cost like gold or like bitcoin, but

there's nothing backing it. So hopefully that makes sense. Um, So anytime you hear someone saying that what's backing goal bitcoin, then you just know there's a complete lack of understanding of what money is, just like there's nothing backing gold. Now, the reason why I bring that up is for a couple of reasons. So first of all, asset backed cryptocurrencies,

they make no sense. I want to talk about that, but I want to talk about something even bigger, which is the real revolution that changed the course of humanity that most people aren't realizing right now, and that's how we took physical property and made the leap into the digital space. I mean, this is mind blowing, but most people haven't really thought through it. So I wanna talk about that, but we'll start with the asset backed cryptocurrency.

So a lot of people I get comments across my YouTube channel, which, by the way, if you're not following me on YouTube, you should just search Mark Moss on YouTube. I put out a couple of teaching videos a week on their typically you know, twenty minute video taking a very complex subject breaking it down with charts and graphs. It's all visual. UM. So follow me on on on there if you're not already UM, and on on on social media as well at one Mark Moss. But I

get comments. I get five thousand comments a week, and I see these comments all the time. It's like, I would never trust something completely digital. It's not real, it's not tangible. I can't hold it in my hand. What I would rather trust is. What I'd rather do is if if if there was a gold backed cryptocurrency, if it was backed by something, so could we have a gold back cryptocurrency UM. There's recently one UM carbon credit crypto carbon credits, where carbon credits are backed by the

cryptocurrency UM. But these things have deep issues with them, and so I want to break that down. The problem, the problem with trying to back something by adding the debt on top of it. And then we're gonna talk about, like I said, this the real revolution of what's just happened that nobody's paying attention to. And if you're missing this, you're gonna miss out on this whole thing. Uh, you're

listening to the Mark Moa show. We're talking about the decentralized Revolution, talking about the way the world is changing through the lens of politics, finance, and technology. I talk about all three of those things right now, we're talking about history and finance. But I'm gonna be back with more to explain to you. This base layer, this first principle is thinking, so you can formulate your own ideas of this, because if you don't understand this, you're gonna

miss what's going on. You're gonna miss the biggest opportunity of your entire lifetime. And I certainly don't want that to happen to you. So I'll be back with that in more a minute. Don't go away, all right, welcome back. You are listening to the Markma Show. We're talking about the decentralized Revolution. Explaining to you how the world is changing right now. I mean, I don't need to explain to you. If you've got your eyes open, you see

the world's changing. The world's breaking apart. Yeah, we knew it would because the pendulum swings from centralization to decentralization. So I'm explained that to you through the lens of politics, finance, and technology. And of course we're talking about bitcoin today. We're talking about what is money from a first principles level. And the reason why that's important is that becauseaid I was at this event, the Freedom Fest. Shout out to Freedom Fest. I'd love to come back if you want

to invite me back. Um, And I just talked to all these people that just didn't understand what this was, and so they have this they have they have all these misunderstandings of of of the economy and how money works because they don't understand this. And I don't want that happened to you, So I'm not gonna rehash it all. If you missed it, check out my podcast on the Mark Moa Show. Just search Market Moss podcast, my Heart radio app, iTunes app whatever. Um so um, we've recovered

all that so um. Gold backed or asset back cryptocurrencies make no sense. They make no sense. And the reason why they make no sense is for the exact reason that I've explained with gold. In order to get goal to have velocity, we had to add debt. The debt is what's sped it up. But the problem is it leads to all sorts of what we call counterparty risks. Like I said, what if, the what if the person keeping the ledger just says, well, Mark doesn't have the

gold anymore, now you do. I mean I trusted them and now they just they screwed me over. Or what if? Um they actually get rid of the gold and they just pretend they ledger ledger back and forth, but they don't really even have the gold. So we have to trust that they have that ledger. The problem is is that over and over and over they've broken that trust. So N three um they created, they got rid of the gold. They had way too many of these I O U s and so what do they do, Well,

they stole everybody's gold. The government of the United States seized your gold, stole your gold and made it illegal for you to own gold. Why because they didn't have it they needed more of it. Um one. They did it again. So how can we trust that? We can't. We saw what happened with Russia. Russia got their bank account seas. We saw the Canadian truckers, they got their bank acount seast. So that money in the bank is

a liability. Someone owes you that money, but the person that owes it to you, the person that keeps that ledger, could just wipe your ledger off. Whenever they want. That's the problem. So why would I want an asset back cryptocurrency? So why would someone say, well, I can't trust uh Um, I can't trust pick one because I can't hold it in my hand. Now if it was, if it was a gold back cryptocurrency, I could trust that, But but

why it's the same problem. So now what I have a token that represents a claim on that goal that that person is holding for me, which is the exact story I gave you. But how do I know they really have that gold? How do I know when I give them that claim they'll give me the gold back? I don't. And there is the crux of the matter. There doesn't need to be anything backing it. Like I said, we're starting to see all types of things being backed, Crypto being backed by things. This latest one is this

carbon credits are backed crypto. Crypto is backed by carbon credits. Again, the same thing, uh um. But it doesn't make sense to take a physical thing, a real world thing, and try to back it with something digital. But of course that doesn't stop people from trying. Um. And we can see of course X we work CEO Adam Newman. Now, if you're familiar with the story. We work. Um, I hate to bore you, so actually I won't. I'm not

gonna go deep into the details. But we work. You know, they had this great idea that we're gonna go do long term leases and Class A office buildings and then they would break it up and sublease it out to individual people who wanted places to work. Um, the company ended up being worth more than all the buildings that they had rented out. How does that make sense? And it doesn't. And if you understand how that doesn't make sense,

then you understand who Adam Newman is. And I guess he's kind of a scammer, of course, and that's why he's creating this new carbon credit backed thing which doesn't make any sense. But let me let me. Now that you understand that why that doesn't make sense, let me explain to what actually been here. So we have physical things, as I talked about. If I have gold, I have gold. If you have gold, you have gold. Everybody sees it, everybody knows it. It's what we call bearer instrument, a

bear instrument. If I have it, the bearer owns it. It's a bare instrument. Stocks trick if its used to bear instruments. Um. But the problem is is, as I said, it's not portable, doesn't doesn't doesn't happen over space. So in order to go into the information age, we now have to use a ledger. Someone has to hold that physical asset, right, that's the problem. But what bitcoin did is it solved that problem and now it allows us to have a bear instrument. But digitally, it's never been

done before because digital things can be copied. You send me a file. Now I have the file and you have the file. I make a copy of the file. I can make ten tho copies of the file. Digital things get copied. So for the first time and ever, we've figured out a way to have a digital bear instrument. It's never been done before. And do you understand how big that is, because this is the problem that that we're stuck with, where all of these assets get um centralized.

And then I always say centralization least of manipulation. Now they have those assets, they manipulate those assets. They say we have more than we did. We don't want to send them back to all these things that can happen, and so it solved that problem. Now we have digital bare asset. It's it's the first time we've ever been able to have digital property that has no counterparty risk. So, uh, you know you have an asset. You own Tesla stock,

at least you think you do. I mean it's in my e trade account, but I guess e Trade owes me Tesla stock. Do they have the Tesla stock, We'll know it's actually owed to them, which is owed to them. So it's a it's a it's a it's a liability. There's counterparty risk. There's a chance because I don't have it in my hand, that I might not get it back.

But bitcoin solved that for the first time. Now we have a digital asset that I can take custody of and I have it, and if I want to send it to you digital Ellie, I can do that with nobody in the middle, no counterparty risk, no liability risk. Now why is that important? Well, as you might imagine,

we live in an information age today. The problem of using physical commodities that they don't scale, and so the only way for the world to work, the only way for the world to work using something like gold or something physical oil commodities things like that, is to put debt on top of it. But that debt leads to then trust us trusting the person with those assets, and we have to trust that they don't manipulate, that they don't create more of it. But we've proven, proven all

throughout humanity that we can't trust those people. As a matter of fact, that trust has been brought to the forefront and slain on the altar with the trucker protests in Canada and then for the whole world to see with Russia, one of three super superpowers with nuclear weapons that got their accounts seized. And so now, for the first time in history, we have a asset that can scale with pure velocity without putting debt on top of it. We've never had an asset before that we could scale

without putting debt, and debt causes the problems. Do you see where we're going with this? So for the first time that one of the oldest problems in in in mankind is how do I store my assets in a way that can't be stolen from me? Bitcoin solve that. How do we have an asset that we can apply

velocity to without adding debt? Well, Bitcoin solved that as well. Now, um, it's about as deep as I'm gonna go, but hopefully you can understand that and you can start to see where these problems lie and how big of a solution

that is. Now, what does that mean for the future. UM, There's been countless books, I don't hundreds of thousands of hours of podcasts and shows talked about this at length, So we can't get into all that, but I wanted to give you this base foundation of what money is, how it works, so now you can start to build your own ideas off this. So now when you hear UM, the federal government wants to increase the debt ceiling, you

understand what they're talking about. When you understand that currencies around the world are starting to fall and they need to have bonds, they need to take on more debt, you start to understand what that means. Now all the reasons,

all the perversions, all the distortions that all this debt creates. Again, that's a tens of thousands of hours of discussion that we can get into that, UM, But don't worry, I will as long as you're tune in with me each and every week you're listening to the Mark Moa show talking about this world that's changing right before very eyes, the decentralized revolution, talking about through the lens of politics, finance, and technology. Each and every week, I'm gonna keep filling

you in on bits and pieces of this. We like to say that fix the money, we can fix the world. Pretty much every problem that we have in the world today, from lockdowns to censorship, to rush in Ukraine, to um to incarceration rates, to obesity, you name it, they're all caused by distortions of the money supple. So if we fix the money, we fix the world. And we do that by getting rid of the debt. We didn't ask that that can scale without adding um. The scalesed with

velocity without adding the debt. And that's what bitcoin solved. That's the real revolution that's happening that everybody's blinded to. But now you're not. Anyway, you listen to the Markma Show. Hopefully that makes sense. Thanks so much for listening.