Bitcoin Mining Crisis Explained - Halving Price Pa

Welcome everyone's to CryptoLog. Very excited to have back on friend of the show, Mr. Christophe. Mr. Christophe, how's it going? It's lonely. It's quiet. I'm not at my mining farm. I'm pulling a data dash happens to watch. I'm pulling a page out of your book. I'm doing a bedroom crypto video because I don't have a home office. So yeah, right now I'm doing the whole social

distancing thing and I actually don't know what to do with myself. Well, it's good to sit down and have chats about crypto then, you know, on the intro. That's always a good place to do it. Thank God we have all this great technology in the year 2020. That allows us to have these amazing conversations, but at a very sociable distance of across the ocean. So you

know what's funny about this. I was actually talking to somebody who actually work in the more traditional technology world and they're used to the whole face to face sitting down the round table, hashing on ideas. And now most of these guys are working off the zoom. And it's kind of foreign to them to actually build at such great distances. And I'm thinking myself, man, step over

to the crypto side. Because I mean, this is, this is a walk apart. You do this all day, every day, you know, everything is built with strangers, setting cross continents on a screen. So that's exactly it. I feel like for me not much has changed, except, you know, my out of business stuff. But for the most part, it's I make videos on my basement. I talk

to people from all around the world, no one's based on this. Except for me. But anyway, that is that is not going to be the topic of our conversation today. I brought Mr. Christoph on because we're going to be talking about Bitcoin mining. Now for those of you who don't know, he is a Bitcoin miner. If you haven't seen this channel yet, there's me linked down

below where you can subscribe and follow along with all of his adventures. But he is a Bitcoin miner. And so we're talking all about Bitcoin mining today because there's a lot going on with Bitcoin mining. And you really need to know how the network is performing. What's going to be happening is small miners, how the Bitcoin having is going to play out. What has happened. We're

putting with the impacts of this virus on Bitcoin miners, their ability to get new equipment and all of this stuff. So we're going to be digging into all that. Make sure you stick around. It's bound to be a really interesting chat. So thanks for taking the time to sit down and you know, break down the mining situation for us without a doubt. Now the question I

want to start off with first, what is your break even price as a miner? What price do you need Bitcoin to be at? Oh, that is. For me here, okay, if it's the S17, the price of Bitcoin needs to be no less than 4250 to make sure all costs are covered with the S17. If you're using the S9, your Bitcoin cost, and this is what five

cents per kilowatt hour, if you're caught, if you're using an S9, you need a Bitcoin price roughly around 9750, I believe, to break even right now. So it's pretty rough, especially with, I mean, if you look at what mining difficult is at a at least 16. It's insane. I mean, if you look at it where it's at right now, and you look at the spike, look

at the spike at where it's at right now, even with a chaos happening around the world, it's a very competitive space. You know, there's no room. There's really, there's like really, I can't say this. There's no room for the small fish anymore. You have whales coming in here. It's like, it's trying to do a hostile takeover. But it does come with the price. Like I do

have a decent size mining farm. I have a two-megawatt facility. I'm capable of expanding to five megawatts. But right now, the issue I'm running into is really not the cost of running it. It's actually running it. You know, with me not being able to get new machines, I can't fire up the S9s. It's kind of crazy. It's kind of crazy. Actually, getting miners right now is

getting supplies and materials to maintain your mining farms is an issue right now. Well, I mean, the supply issues really acute because this is the thing. You've got your S9s right sitting there. So you got these mining computers. And basically, you need the price to be close to $10,000 to make it worth even turning them on. Obviously, that's where nowhere near that right now. And in

about two months, less than two months, like seven weeks, those S9s are going to need what close to a $20,000 break even price to be profitable, right? And your S17s are going to need a proximity break even price. So you can get a price around $8,500 in seven weeks. And seven weeks may even put on notice big time by Bitcoin. That's crazy. It's no joke. But

you know, it's a necessary evil. The halving is a necessary evil. You know, and that's the beauty about Bitcoin. And there's a lot of people miss this beauty. It's, we have so many elements in the Bitcoin and the Bitcoin ecosystem that's designed to keep things in check. Right. So for instance, right now, we have institutional miners that are running it. And it's really coming in there.

And it seems as if that they're going to take over the space, or they're going to own the space. But we also have, so we have the mining difficulty. Then we have the market. If mining gets out of hand, the market corrects it. If the market gets out of hand, mining corrects it. You get them saying it's a balance. It's a delicate little, it's a delicate

a necessary evil. It will rebalance things out over time. Are you going to have to close your mining farm down after the halving? Yeah. The way things are going right now. I don't have a choice because I have the building, right, which is it's a lease. I don't own the buildings. Lease. I needed to find a place where I can hide it in plain sight. It's

actually hidden in plain sight in the middle of a shopping center. People walk by every single day and have no idea it's there. So I have a lot of people there. But that lease is ends the end of this month. And the agreement I have is he gets a percentage of the Bitcoin, right, which is a pretty good deal. He believes in it. But the problem

is I'm not mining. So that lease agreement is null. I can't continue to mine right now because the S9s aren't profitable. And I can't get any more S17s. I found some S17s, but what they're asking for is just no, I'm not going to think for them. You know, and then the S17s that I know from trusted sources, they're good S17s, they're good machines. I can't get

them shipped here because of all the all the bands on shipping from these countries right now. You know, it's such a it's a delicate thing. So if I can't upgrade the infrastructure, I'm going to have to because something else I did this year was I changed the model. So I'm going to have to change the model for my mining farm. Mining farms pay out pretty well.

And I paid out more than I should have when I first started to prove the model, the move the concept of mining, the prove that I can make this work. This year, what we've done is a restructure the thing. So instead of having these massive payouts, I designed it where the mining farm doesn't pay out any more than 6% per year, right, random. And the reason

for that is so that we take the residual and keep moving forward. We invest into the mining farm to constantly grow as more organically. And then we have another structure within that structure, which means when we can take on investors, which means we can grow faster, but we're also providing a place for these guys to invest. That is recession. As long as there's no virus going

around the world that we're being shipped. I mean, you know, it's kind of crazy. I kind of got blindsided the whole the whole virus thing. Damning shipping is you know, it is what it's like. That is though. I don't think though, I will shut down the doors. I'm going to fight this tooth and now if I have to, I'll move to a different location. You know,

I'll move all the equipment. I'll spend the money that's necessary to get the power brought in. I have all the infrastructure to take power. I just need now to bring the power to it, which is very expensive. But I don't know. I'm a believer in this in the future. I am I believe in I believe in that. I don't I'm a believer in decentralization. So I

don't think I'll give it up that easy. Nice. Even even if you have to turn the machines off and maybe walk away temporarily, it's not going to shake you out. A long term. I just want to back to the difficulty and really getting new equipment. Because I think this is something people really, really need to understand how these global supply chains work. Right now we're seeing

a situation where we have a lot of chips for the mining machines themselves actually being made in Taiwan being made in Japan and being made in different parts of China as well. So between those places, the chips aren't being shipped. People can't go to work to make the chip. And a lot of these places, the chips aren't being shipped internationally. Or if they are, there's massive

delays. I'm moving them from point A to point B. Then you go to like someone like Bitmain, right? And there may be their workers aren't going into work. If they are going to work, there's maybe they're making the machines, whether to stack them up because they can't ship them internationally. They can't ship them around domestically because of all these things that are in place because of

the virus. So actually people getting their hands on new machines is very, very difficult to do right now. And in you're not alone, right? I mean miners all over the world are going to be having trouble getting equipment right now. Yeah, it's the mining equipment that's difficult. And it was funny. What are you talking about? I know to be true. But some people argue and say,

Oh, no, it's not true. They're running up and running. They're still mining and blah, blah, blah. But here's something else. Even if the Chinese miners are still running, right? Even if they get mining equipment, actual miners and power supply units, what they cannot get is the actual infrastructure. They can't get the new breakers. They can't get the new panels. They can't get new relays. All these

things, believe it or not, the number one supplier, the number one supplier for mining facilities is square D. And they're in the United States. And square D's union owned. So if you're in the United States, and you hear that word, union, you know exactly what I'm talking about. When I say union and disease, that means these guys aren't working. So there's a real severe shortage of

supply of square D's as far as breakers panels, wires and relays and everything else you need in this connects general electric. It's the second biggest. Again, general electric United States is the biggest supplier of these electrical equipment. You can't get that China. These massive mining farms have a lot of failures. You can't run that much power without failures. It's just impossible. Things wear out. So there

is a huge shortage in that. So I do know that several mining farms, and I know this for a fact because I do get... It's like a small network. You get contacted, hey, listen, can you get a whole session such a whole list. Number one thing people ask me for right now are panels. People need panels. They're looking for panels to add more power, but they

can't add more power. So in some parts of China, there is an abundance of miners that are not running because they can't run. So they're trying to put them in different locations, but they can't move with different locations. They don't have materials. It's kind of crazy. Things are not great even for the big companies. They're buying different parts. If they can't get that supply chain to

get all these pieces together, they can assemble these machines. The whole gosh darn thing breaks down. But I want to ask you about this. Do you see that? Well, hey, I want to interrupt you. There's one thing that's really important about this. So you got to remember, and it's kind of funny, no matter what we try to do in this conversation, it's going to be hard

to avoid the whole coronavirus. But because of what's happening with the virus and the he said she said, Taiwan has taken a different approach than China has as far as managing the virus. These are not exactly seeing eye to eye because of that. That has actually translated and spilled over to importing and exporting. So right now, Taiwan is not exporting at the rate they were to

China certain electronic goods. That's Taiwan is like, is like the Taiwan is becoming which pan was back in the 80s and 90s as far as micro processors. Right? One of the biggest and then they make more microchips than basically anyone else, right? Yes. I mean, you know, there, there's a shortage. There's a serious shortage of stuff like that. And it's things that people don't really talk

about, we really understand. So I mean, right now, which important understand is miners, especially big ones, even your, even your mining farms and reminding entities of own pools. Things aren't as beautiful or as great for them as people may think they are. That's all I talk about. The big miners for second, do you see that we could see a massive monopolization of power in the hands

of the big miners? I feel like, you know, you're running a relatively small mining operation and then the grand scheme of how big some of these other guys are. So, you know, the smaller miners, a lot of them are going to have to shut, right? Your, your case is probably not unique in that situation. And you know, you've got relatively cheap power, you know, not the

cheapest but relatively cheap. A lot of other miners will be operating on higher costs, even above that. But I look at companies like Bitmain, Bitmain's a giant miner, right? They're going to have likely, maybe not, but likely enough cash reserves and things like this to be able to ride out the storm, so to speak. So do you think that once all this blows over and the

dust, dust settles that we're going to have basically a massive monopolization of power in the mining in, you know, let's say 15 or 20 different hands versus the thousands of different miners we have right now. Because it goes back to the fact that the blockchain world, especially big point, is like nature. It has many different factors that helps to correct itself. But shing does mean if

you're a buyout, a career, you won't race, if you don't run, if you don't run all of that, they're giving you space. And you move certain freedwa of the line grows where you go all the time. And you can find a new traders take percentage of those trades by the way. So there's already some loss there. And then you strategically sell and you pay back your

loan. But that loan acquired interest too. Right. So depending on how long you hold it and how much credit you had used, you know, pay back interest. And it also through that process, you had things that break machines that replace materials and you replace staff get to pay. So I mean, it's very, that's why there's always these mega money forms and need an excessive investment. So

it's super expensive to get too big when it comes to mining. It sounds good. It sounds promising. The only people actually make money are the people involved with it, right? The actual hands on team. Now the investors who invest in this. Now view yourself watching this and saying, I'm going to invest in a big mining farm. Someone's talking into it. If someone says, yeah, invest one

big coin or invest to Bitcoin. And then you're going to make X amount of money over X amount of time. You have to realize if you invest one Bitcoin into a mining farm, you are never going to see that one Bitcoin back. You'll never mind back that one Bitcoin mining. When you invest in mining, you aren't actually a true decentralized fan because you're working off of

USD. You're working off of the. You're working off of the faculty. I invested $10,000 today, which is one big point today. We're just using Git math simple, which is looking at the Bitcoin value. You're looking at the USD value. One kind of get my USD value back. Probably get that back pretty quick. You'll never get that Bitcoin value back. That's how these guys are structured. They're

all based off of Bitcoin. It's a cash business. It's a cash business that runs off of debt. Just like every other business that's struggling right now because of the virus, because of the market being down. That being said, if there's ever a time that institutions own the space, it will not be long. It will be a very short lift, just because I know how volatile that

business is. I know that it has to be debt-driven. Investor-driven, in order for something above five megawatts to ever possibly succeed. Wow. Very interesting. Very, very interesting. You'd think that while the more of an optimization of power, the better, but actually, you see all these different issues that come into it. The big guys obviously do have some certain advantages in terms of having lots of money

behind them. It doesn't hurt to have $50 million or something to be able to throw at Bitcoin mining, but it also comes with its own issues as well. We've seen actually some really, really big farm announcements in the United States. There's three super farms, basically, that were announced in Texas, one by Peter Teal, one by Bitmain, and one back to back camera with the other party,

but there are three just gigantic ones. It's nice, I guess, on the one hand that there is at least a month ago before everything went down, that US is actually putting a bigger geographical footprint into mining. That's definitely a good thing. I want to ask you this. If, of course, you're not forced to shut down and go out of business forever, do you think that the

US can actually make itself into a major Bitcoin mining player long term? Because up until now, it's really been just like Georgia, the Republic of Georgia, tiny little country, and in the far, far east side of Europe, that's a much bigger miner than the entire United States. I can't, I'm trying to think of a way to answer this and not seeing a little biased about this,

but if we didn't have our politicians, it would have worked. If you look at, I'll give you an example. I'll just look at my mining part to get this kind of power that I have. I actually worked with my state government, the city government, with this great idea of trying to introduce mining into World America. I did that. I know what that's about. What happens with

that is your state security division wants to get involved. They have a lot of questions. The questions are, how does this work, how it makes money, who pays the taxes, is this a security? I actually suspect my personal opinion that the only reason BitMain is successfully, if they actually ever build it in break ground. Remember, they announced the same thing in Texas in 2018, and then

they canceled it. Yeah, it was an early age 2018. They said, we're going to build this big $500 million mining farm in Texas, and then all of a sudden they canceled. They promised all these jobs and sold this high. I can't. Then I'll send this back again. But if this is actually happening in my opinion, it's going to be a lot like a chain analysis deal.

Mining is still that one element that regulators don't fight, understand what to do with. How do you regulate that? How do you manage that? Chain analysis has brought a lot of clarity to the securities and the CFTC as far as how to regulate and how to manage and what to look for as far as transactions and trades and exchanges and leverage trading. They have a lot

of that insight. They have a lot of that knowledge. I think that this works with BitMain, and if it does actually happen, I think it's going to be a deal a lot longer along those lines. I could be wrong, but I just don't see that kind of an instant. That kind of entity successfully doing that without that kind of relationship. Yeah, there's always, always these backroom

deals that go on. And when you start talking about this kind of money, it's unfortunate, but that's kind of the reality too. Now, I want to get your take on the energy markets here, because we've seen oil take a massive hit recently. And I think it's up today. I haven't looked at the oil markets today. But I'm pretty sure oil went back up a little bit

today. But basically what we're seeing right now is aside from all the general panic and the slow down of global economies. Right now, Russia and Saudi Arabia are basically having a massive oil price war, which is going to continually drive the price of oil down globally. If it continues, obviously, if there's a slowdown in demand, which seems that there was a massive slowdown in demand with

airlines and cruise ships and all this stuff, you know, basically going massively into pain. So if that happens, if we do get cheap enough energy price, do you think that actually we could see a move potentially away from renewables towards oil if it gets cheap enough to power Bitcoin mining? And could that actually be a bit of a savior, do you think, for Bitcoin miners, if

we get cheap enough energy prices from the oil markets? So in this, in this community, I'm there for the meetings when it comes to the power buys, what they call it. And it's pretty much the same anywhere you go, except for if you're in a community, that has their own power facility, right, their own nuclear power plant or own coal power plant. And then things are

different for those communities. But most communities that don't have, especially rural America, or the places where you will build a mining farm, what happens is they actually buy power off the grid, right, because these places don't have their own power plants. So they have to get power brought to them. So they actually buy this power a year in advance in some cases, sometimes even two years

in advance. Okay. So right now with what oil is doing, the oil driven power is cheaper than what you can get from your solar power or your wind power or your renewable sources. I mean, more of your smaller communities are going to go ahead and start buying oil, oil driven power at what these prices, I mean, it's business. It's simply this business, you know, they need

to, they need to maximize the tax dollar, right, the community tax dollar. So I think as long as oil is going to be able to be able to get a new power, you know, to get a new power. So I think that's a good thing. It gets as cheap as it is. It's the cost, the cost of purchasing the, that was kind of power buys and

the cost of logistics to get the power to them is cheaper than utilizing the renewable resources, the renewable sources. I mean, yeah, I think short term, it will definitely go for it. But it's not going to last like that forever. I mean, if you look at what's happening right now around the world, even though we have a virus holding everyone down, we put ourselves in a

situation where we're going to be able to get a new power. And the final topic I want to cover off with you here is a big one, of course, but the Bitcoin having, we're about seven weeks out now. So what are your predictions? As someone who's actually in the game, you know, you're kind of like a new team, got skin in the game, you're mining. I

mean, what do you see playing out with the Bitcoin having what it happens? This doesn't make me popular. I'm just letting you know that right now. No one likes my stances on it because I'm not real. I don't want to go to the moon to the moon. Yeah. Everybody talks about the moon, and everything's a double the triple price. I'm a firm believer in Bitcoin, no

matter if it's a $1,000 Bitcoin or a hundred thousand or a big one. I'm going to start off with this. The price of Bitcoin is peg to the US dollar, right? That's where we're going to be peg. That's our cornerstone right now. The US dollar. The US dollar just now did another round of quantitative easing of somewhere around 500 to 750 billion dollars. Before this virus

kicked in the US dollar today, what it had is spending power of two cents compared to the US dollar of 1775, which had one, right? It was one for one. Now it's two cents. That was two cents. But last week, as of right now, it could be one cent. What happens when we drive that spending power to somewhere less than a cent? I mean, it's just

paper. We're pegging the price of Bitcoin to just paper. I don't, I'm starting as I get into this longer and longer and deeper and deeper. I'm not really concerned about getting, you know, a Bitcoin worth $100,000 or $200,000. I'm only concerned about getting as much Bitcoin as I can. You know, I've actually gotten to a point like when I do things, I do consulting or even

sometimes sponsorship for projects. I don't, I don't, I'm getting to a point where I'm like, listen, I'm worth one big point or two big point, whatever it may be at that time. I don't care what the price of Bitcoin may be in US dollar. We're talking about Bitcoin standard here. So that being said, I, this is why I'm very unemotional when I give my halfing prediction.

I see a Bitcoin values need to exist, not that Bitcoin USD values. But as far as the halfing goes, Bitcoin has elements now that never existed in any of the other halfing events before. These are institutional elements. These are regulatory elements. These are even some other retail elements, such as buybit and Bitmax. Okay. We have a lot of new elements. Now majority of these new elements

that exist, especially on the institutional end, they are designed not to bet on the asset of Bitcoin, but to get bet against the price of that asset, all the big point bet against the price. So if you look at the market now and any season trader watching this isn't exactly what I'm talking about when I say traders trade against market makers, when a trader sees that

a coin is getting pumped by a market maker, or a coin is trying to inflate itself or trying to build its value, it gets traded because you know it's going to go up and you know you can keep dumping on it. You can keep, it's a washroom to beat thing until they're done. And you know what I mean? It's just, it's not rendings. So because you

know it's there with Bitcoin, these same thing, the same thing is going to happen. The retail world is acting as the market maker who is going to keep Bitcoin going up. Whereas you're in such a position and some of your retail driven products, I buy Bitfix, now can see the future, the predictive future that people are going to buy out of copium, out of FOMO because

this is what the past has told us about Bitcoin. And they're going to trade against that. I firmly believe this going to be trade, this, this happening is going to be traded against for as long as it can be. After that, I do, I do firmly believe the price of Bitcoin will go up. I don't think it would be a $20,000 Bitcoin right away. I'm thinking

more along this of somewhere between the market. $19,000, $12,000 just above mining, just above mining costs, somewhere around there. My personal thoughts. I could be wrong. Well that makes sense to me. I mean we've seen Bitcoin historically largely, you know, keep just ahead of the cost of production, you know, and it's sometimes a bit farther ahead. Sometimes it, you know, drops below the cost of production,

but it's worked as a relative scale for how that moves. And so if we see, like we said, after the Bitcoin having the S17s, which you know, and you know, generation of machines, they're going to need an $8,500 Bitcoin to be profitable. And that's that's the break even for most miners, right. Average situation, some buyers, cheaper, some buyers were expensive, but that's the break even for

most people. So at $8,500, that's your break even, but you want to make money. You're in this game to make money, right. So that's why Bitcoin at 9,000 or 10,000, 11, 12,000, right. That's when you're actually making money, right. So that's pretty interesting. I could definitely see that playing out. I think short term, long term, obviously, you know, still big Bitcoin bull. And I think you

bring up a really, really good point to the one Bitcoin is one Bitcoin. And that's for people who might be new to the game and you're just looking, okay, how can I get more dollars for my Bitcoin and a trade to get more dollars and all that stuff. Like that's that's a game. You can play that game if you want. But I think for the real,

real Bitcoin believers, one Bitcoin is one Bitcoin. And that actually means something because $1 being $1, that really doesn't mean the same thing as we've seen. I mean, within my own lifetime, I've watched the US dollar. Like I looked at it and thought looked at the different inflation charts and stuff. And let's say my dad had given me like $10,000 when I was born and just

put it in some account for me that I can get today, right. Well, the purchasing power of those $10,000, you know, that would have gone in half. It's just crazy. Like the devaluation and the purchasing power of this money, like he would have had to work, you know, twice as hard back then to get that money. It's just, it's crazy. How, how much devaluation is, you

know, the number on the thing, you know, the piece of paper still says the same value, but that doesn't mean as much anymore because everything's now twice as expensive. It's crazy. All right. It is just paper. It's just it is. And if you look at it, I mean, they just made between 500 billion and 750 billion more pieces of paper for you that, whereas Bitcoin, there's

only 21 million that are ever exists. They're protect, roughly a quarter of that, what's out right now is lost, right. Could be more could be less, but when you hold Bitcoin, even you hold a fraction of the Bitcoin, 0.001 Bitcoin, you're holding something that's precious, you know. And I feel that I feel like we're at a time right now where people need to focus more on

establishing what is a Bitcoin value? Like this, this EOS R, this camera, right. This is a USD is a 3,000 dollar camera. But what is this in Bitcoin value? I should have a Bitcoin value. It's not a USD value. And it shouldn't be based off of USD value. You know, we should figure out what do we think are things around us are worth? What's a cup

of coffee worth in Bitcoin? No. I really feel we're at that time. We have to establish that because the more. Start talking about the unit of account. Yes, the more we sit there and focus on how much USD is going to be worth. Okay. The more you give the power to the institutional players, even in the mining room. The mining one. Again, they don't care about

how much Bitcoin don't know. They don't care about much Bitcoin. They're mining how much USD are they make? So never get that Bitcoin back to the end. That is where we're gearing all this. Everyone keeps, it kills me going Twitter. You're going to go and crypto Twitter. Everyone talks about. Oh, the USD is going to fail. The whole financial system is going to fail. And then

you hear their solution. But Bitcoin's the solution. Bitcoin, Bitcoin will never be inflated. Bitcoin, you know, it can never be more than what there is and so on and so forth. Bitcoin solves all the problems. But what kills me is we work Bitcoin in the same exact way. A stock market. We're not worried about the USD value. We're worried about making a million dollars with the

Bitcoin. We're not worried about having a million Bitcoin. We're not making a million dollars with the Bitcoin. I want to make a hundred thousand dollars. It's a very, this space is starting to become the narrative is starting to be very critical in my opinion. I don't really think it's the retail investors fault. I don't. I think it's almost like profit. You know, space. Well, there's a

lot of propaganda Bitcoin without a doubt. You actually brought up a really interesting point to on quantitative easing because, you know, that $700 billion and look, there's a lot of other money being put up for the repo markets and stuff like this. But that's $700 billion. That's not going to be printed in actual dollar. But at least if they were printing the dollar bills out, you

would go, okay, well, at least they're doing some kind of work to make the money. But literally, they're just going to go in, open up the Federal zero computer program and just add a couple zeros on the end. That's it. That's it. That is the proof of work. You know, Mr. Powell sits down for five minutes. Let me just add a couple zeros here and, okay,

we put another $700 billion into the economy. Compare that to Bitcoin, right? This global network of computing power, the most secure computing network in the world. Miners all over the world, putting power in, competing, really making something. Right. It's a beautiful process when you really get down to it versus just, there's $700 billion dollars. Click. It's what it is. But you know, what's so sad is

when we do that here in the United States, other countries have to do that also. A lot of people don't, it's funny because I, you know, I look up on Twitter and I watch a lot of people bash United States from doing that. But because of the fact that all of our economies are now in, they're fine. We're locked in, this beautiful thing called trade. It's,

it's caused us to lock in tightly. So when we do that to our currency, in order for business to be conducted as normal and race to stay as normal, the other current, the other economies essentially have to do the same thing. You know, it's, oh, it's, it's a nasty, it's a nasty vicious cycle. It's like, it can never ending cycle. You know, it's quite the dance

when you look at this global economic situation, how everyone, all these central banks are playing this game. But, uh, yeah. Stop the, yeah, it is. You, you, you used to be a professor and you used, and obviously you have a really, you used a lot of objective thinking when you think about stuff like this. How much can be print before you just can't print anymore? I

mean, where, where's that threshold? I personally, just when I thought we're there, it's something happens when not, you know, where is that, where's that threshold? I mean, if we start talking about when we get into like hyperinflation, right? I think this is what the real question is. How long before the money actually dramatically becomes worth nothing. Right now, what we have with fiat is a slow

motion train wreck. This way I like to describe it. You know, no one's worried too much because it's happening in very slow time, losing 2% of your purchasing power a year. That doesn't really, you know, people don't really notice it that much when it happens. If you had a 100% devaluation of, you know, your local fiat currency and a year, then people really, you know, wake

up and go, oh my God, what happened? How did this happen? And if you think you're safe because you're in the dollar or in the end or in the euro or in the pound, you're not. You're just not. I mean, we've seen it happen to countries all over the world where they wake up tomorrow and all of a sudden an economic crisis has made it so

that local fiat currency is worth half what it was yesterday. And that's if you think you're safe, you're not safe. And that's not to be like, oh, you know, the end of fiat everywhere. I mean, look, as long as governments maintain power and so long as there's men with guns willing to enforce the collection of taxes and the regulations of the policymakers, then you're going to

have fiat currencies. And if you don't like the sound of that system, if you don't like the idea that you might wake up tomorrow and, you know, have capital controls at your local bank and all these things, then there's an option out there for you. It's called Bitcoin. I like that. I like that again. But I think the most important thing, the narrative needs to be,

I mean, think of all the narratives Bitcoin has had over the years. The one, my favorite one, actually, favorite narrative that Bitcoin had was in 2017 and it was banked, the unbanked. Remember that? Remember that? So that was the, that was a narrative of Bitcoin bank, the unbanked. And then, of course, Ripple took that and turned into a whole different thing. But what I could talk

about that. But it's, you know, the narrative was banked and banked. And then after that, it was the store value narrative. Right? Bitcoin is the store of value. And everyone had this idea that you needed a horde Bitcoin and wait out for the old money to get pleaded out before new money could worth anything. And obviously, what just happened with the coronavirus destroyed that narrative. You

know, I think the narrative right now, needs to be is to establish established Bitcoin. You know, we need to establish Bitcoin. It needs, if people want Bitcoin to be that currency, that world currency, we need to establish it. We need to establish Bitcoin value. What is Bitcoin worth? What does that cup of coffee worth? Can't even, if we can't even establish or figure out what one

cup of coffee should be worth a Starbucks. Here we go Starbucks. Let's go expensive. But a Starbucks vanilla latte is an actual worth and BTC value. We have nothing. Yeah. We can't figure that out. Well, you know, I think an interesting thing that regular people can do in this regard. I know it could be tough because, you know, if you're the coffee seller, you have to

make sure that you're getting your profit margin and all these different things. But what I think we can actually do as regular people, increasingly is to actually start that economy out of peer-to-peer basis. It, you know, the corporations and all these guys, they're going to be some of the last ones to the party. We've even seen with them. Things like, okay, back's Bitcoin payment thing. What

that really is is about getting, you know, dollars because Starbucks doesn't want to hold Bitcoin. They want to get their dollars, right? But as a peer-to-peer thing, right, if you need to hire somebody to come and mow your lawn or something like that, well, you can pay them in Bitcoin, right? If you need to, I don't know, sell your car, you could sell your car for

Bitcoin, right? And so this is the thing you can actually establish these kind of barters so that you're not just trading your Bitcoin for more fiat. You can actually be, using Bitcoin as a way to act as a medium of exchange between peers. And that's, you know, something that everybody can do with their Bitcoin. If you're doing services online, or you're doing services in real life,

say, Hey, I would like to be paid in Bitcoin. You can offer people discounts. Say, Hey, you can pay me in cash and it's going to cost you 10% more. You can pay me in Bitcoin and it's going to cost this. Yeah. Yeah. So sometimes I think about people. It does. It starts at the ground level. What you're, what you're approach on this is absolutely right.

It does. It starts. It starts at the ground level. It starts at the retail guys. You know, it does. It starts. It's always the ground level, which you know, it's funny about the retail guys. Everything starts at the ground levels, but do you know the retail guys are the prey or the sheep of the world? Well, to an extent, yes, I think a lot of, I

think it's not just the crypto world. I think it's every market that retail investors tend to be the ones who make the most mistakes because they've got the least knowledge about those markets. And that the, the, the wolves of the markets, so to speak, will be the ones who do prey on those investors. And it's, I think, really down on the retail person to get that

knowledge to be able to, you know, walk through a forest filled with wolves. Yeah. It is. It's just how our ecosystem has been designed lately. It's been more about using the retail investor as the vessel to make the institutional investor more money. That's true. That's a very, very true. Yeah. Next time we do a video, we should do something on leverage trading. I'll teach you some.

That would be interesting stuff. That would be that. That's a, that's a good topic for another day. Mr. Christoppa. Actually, well, we'll finish this chat up here. I think we've had, we've got about 45 minutes. I've got some really, really great info out there for people on Bitcoin mining, the state of mining. What's going on or the effects of the virus and all that stuff on

it? So man, thank you so much for coming on and, you know, sharing your opinion as a Bitcoin miner about what is going on in the mining world. So thank you so much for coming on. So much. Absolutely. It's always a pleasure to come on. I mean, yeah. We always have good meaningful conversations. Awesome. So man, thank you. All right. See you.