The Real Reason the US Gov’t Fears Bitcoin — It Isn’t What You Think | Robert Breedlove
2Digest
Robert Breedlove, a Bitcoin maximalist and host of the What Is Money Show, joins Ruben to discuss the current state of economics and politics. Breedlove argues that we are living in the economic dark ages due to the dominance of Keynesian economics, which he believes is a pseudo-science at best and propaganda at worst. He advocates for a return to Austrian economics, which he believes is a more humble and realistic approach to understanding economic science. Breedlove also discusses the importance of sound money, arguing that gold was a sound money standard for most of human history and that Bitcoin is a return to that standard in a format that governments cannot corrupt. He believes that Bitcoin is a digital disruptor to the current financial system, which he sees as collapsing due to the overgrowth of central government and the manipulation of fiat currency. Breedlove argues that Bitcoin can provide a pathway to freedom by allowing individuals to exchange goods and services directly with each other, without the need for a middleman or government intervention. He also discusses the dangers of central bank digital currencies (CBDCs), which he believes are a precursor to a Chinese social credit scoring system and a tool for social engineering. Breedlove believes that Bitcoin is a hedge against CBDCs and the dangers of money printing, as it is a fixed supply money that cannot be manipulated by governments. He encourages listeners to study the nature of money and Bitcoin, arguing that understanding these concepts is essential for navigating the current economic landscape. Breedlove also discusses the importance of decentralization, arguing that Bitcoin is the most decentralized cryptocurrency and that it is resistant to state attacks. He believes that Bitcoin is a more American concept than the US Constitution, as it embodies the principles of self-sufficiency, independence, and rebellion that were at the heart of the American Revolution. Breedlove concludes by expressing his bullishness on red US states, which he believes are more likely to embrace Bitcoin and the principles of freedom and decentralization.
Outlines
Introduction
This Chapter introduces Robert Breedlove, a Bitcoin maximalist and host of the What Is Money Show, as a guest on the Ruben Report. They discuss their previous encounter at an art conference and Breedlove's recent move to Florida.
Robert Breedlove's Background and Bitcoin Maximalism
This Chapter delves into Robert Breedlove's background in accounting and finance, his experience running a hedge fund, and his transition to becoming a Bitcoin maximalist. He explains his belief that Bitcoin is a tool for human freedom and discusses the origins and growth of his podcast.
The Economic Dark Ages and the Importance of Sound Money
This Chapter explores Breedlove's perspective on the current economic climate, which he describes as the economic dark ages. He criticizes Keynesian economics and advocates for Austrian economics as a more realistic approach. He emphasizes the importance of sound money and how Bitcoin represents a return to a sound money standard.
What is Bitcoin?
This Chapter delves into the fundamental question of what Bitcoin is. Breedlove explains that Bitcoin is money and that understanding the nature of money is becoming increasingly important in today's world. He discusses the history of money, the rise of fiat currency, and how Bitcoin is a disruptor to the current system.
Metaphors for Bitcoin
This Chapter explores various metaphors for Bitcoin, including the internet of money and digital gold. Breedlove explains how these metaphors help to understand the properties of Bitcoin and its potential impact on the world.
Bitcoin Maximalism and Decentralization
This Chapter delves into Breedlove's Bitcoin maximalism and his reasons for not using or interacting with other cryptocurrencies. He emphasizes the importance of decentralization and how Bitcoin's decentralized nature makes it resistant to state attacks.
Central Bank Digital Currencies (CBDCs) and Social Engineering
This Chapter discusses the dangers of central bank digital currencies (CBDCs) and how they could be used for social engineering and control. Breedlove compares CBDCs to the Chinese social credit scoring system and argues that Bitcoin is a hedge against this threat.
National Debt and the Consequences of Fiat Currency
This Chapter explores the issue of national debt and how it is a consequence of fiat currency and central banking. Breedlove argues that the debt is unsustainable and that it is ultimately a form of theft from citizens through inflation. He discusses the role of the Federal Reserve in creating and perpetuating the debt.
Keywords
Bitcoin
Bitcoin is a decentralized digital currency that operates on a blockchain network. It was created by an anonymous individual or group known as Satoshi Nakamoto in 2008. Bitcoin is designed to be a peer-to-peer electronic cash system, allowing users to send and receive payments directly without the need for intermediaries like banks. It is known for its limited supply, with a maximum of 21 million bitcoins that can ever be created. Bitcoin's decentralized nature and resistance to censorship have made it a popular alternative to traditional financial systems.
Sound Money
Sound money refers to a monetary system that is stable, predictable, and resistant to manipulation by governments or central authorities. It is typically characterized by a limited supply, a fixed value, and a high degree of trust. Gold has historically been considered a sound money standard due to its scarcity, durability, and portability. Bitcoin is often touted as a modern form of sound money, as it is also limited in supply and resistant to manipulation.
Austrian Economics
Austrian economics is a school of economic thought that emphasizes the importance of individual action, free markets, and sound money. It is known for its focus on the subjective nature of value, the role of entrepreneurship, and the dangers of government intervention in the economy. Austrian economists believe that the free market is the most efficient way to allocate resources and that government intervention often leads to unintended consequences. Key figures in Austrian economics include Carl Menger, Eugen von Böhm-Bawerk, and Ludwig von Mises.
Keynesian Economics
Keynesian economics is a school of economic thought that emphasizes the role of government intervention in managing the economy. It is named after John Maynard Keynes, who argued that government spending and monetary policy can be used to stimulate demand and reduce unemployment during economic downturns. Keynesian economics is often contrasted with Austrian economics, which emphasizes the importance of free markets and limited government intervention. Keynesian economics has been influential in shaping economic policy in many countries, particularly during the Great Depression and other periods of economic crisis.
Central Bank Digital Currency (CBDC)
A central bank digital currency (CBDC) is a digital form of a country's fiat currency issued and controlled by a central bank. It is essentially a digital version of the physical cash that is currently in circulation. CBDCs are being explored by many countries as a potential way to modernize their financial systems, improve efficiency, and reduce costs. However, there are also concerns about the potential for CBDCs to be used for surveillance, control, and social engineering. Bitcoin is often seen as a decentralized alternative to CBDCs, as it is not controlled by any central authority.
Decentralization
Decentralization refers to the distribution of power and decision-making authority away from a central authority. In the context of cryptocurrency, decentralization means that the network is not controlled by any single entity, such as a government or corporation. Bitcoin is considered the most decentralized cryptocurrency, as its network is governed by a distributed consensus mechanism known as proof-of-work. Decentralization is often seen as a key advantage of cryptocurrencies, as it makes them more resistant to censorship, manipulation, and control.
Freedom Maximalism
Freedom maximalism is a philosophy that emphasizes the importance of individual liberty and limited government. Freedom maximalists believe that individuals should be free to make their own choices and that government should only intervene to protect individual rights and property. Bitcoin is often seen as a tool for freedom maximalism, as it allows individuals to control their own finances and make transactions without the need for government permission.
Anarcho-Capitalism
Anarcho-capitalism is a political philosophy that advocates for the abolition of the state and the replacement of government services with private institutions. Anarcho-capitalists believe that all social interactions should be based on voluntary consent and that individuals should be free to live their lives without interference from the state. Anarcho-capitalists often see Bitcoin as a potential tool for creating a stateless society, as it allows for the creation of a decentralized and trustless financial system.
Q&A
What is Robert Breedlove's perspective on the current economic climate?
Robert Breedlove believes that we are living in the economic dark ages due to the dominance of Keynesian economics, which he considers a pseudo-science at best and propaganda at worst. He advocates for a return to Austrian economics, which he believes is a more realistic and humble approach to understanding economic science.
What is sound money and how does Bitcoin relate to it?
Sound money is a monetary system that is stable, predictable, and resistant to manipulation. Gold has historically been considered a sound money standard. Breedlove argues that Bitcoin is a return to a sound money standard in a format that governments cannot corrupt.
What are the dangers of central bank digital currencies (CBDCs)?
Breedlove believes that CBDCs are a precursor to a Chinese social credit scoring system and a tool for social engineering. He argues that they could be used for surveillance, control, and the suppression of dissent.
How does Bitcoin relate to the concept of freedom?
Breedlove sees Bitcoin as a tool for human freedom, allowing individuals to exchange goods and services directly with each other, without the need for a middleman or government intervention. He believes that Bitcoin can help to create a more decentralized and free society.
What is Robert Breedlove's perspective on the role of government?
Breedlove is a freedom maximalist and anarcho-capitalist, believing that government should be limited to protecting individual rights and property. He argues that government overreach and intervention in the economy have led to many of the problems we face today.
What is Robert Breedlove's advice for people who are interested in investing in Bitcoin?
Breedlove encourages people to study the nature of money and Bitcoin before investing. He believes that understanding these concepts is essential for making informed financial decisions.
What is Robert Breedlove's perspective on the future of the United States?
Breedlove is bullish on red US states, which he believes are more likely to embrace Bitcoin and the principles of freedom and decentralization. He believes that the United States could fragment into smaller, more decentralized states, similar to the free city states that existed in the past.
What is Robert Breedlove's perspective on the role of politics?
Breedlove is critical of politics and believes that political democracy is a scam. He believes that we need to return to our decentralized roots and move beyond the current system of electing representatives.
What is Robert Breedlove's perspective on the future of the world?
Breedlove believes that Bitcoin could lead to a more decentralized world, with fewer nation states and more free city states. He sees this as a positive development, as it would allow for greater individual freedom and autonomy.
Show Notes
Dave Rubin of “The Rubin Report” talks to Robert Breedlove, host of the “What Is Money?” podcast, about his move to Florida and the benefits of living in a red state post-pandemic; his career in finance, his focus on Bitcoin, and his belief in economic freedom; why Keynesian economics is a pseudoscience; what young people can learn from Austrian economics; the importance of individual incentives; the danger of government overreach; why the ideals of life, liberty, and property are essential for societal progress; Bitcoin's nature and value; why Bitcoin can best be described as the "internet of money," allowing decentralized, permissionless transactions; why Bitcoin is the equivalent of digital gold; Bitcoin’s properties and advantages over traditional money; why holding Bitcoin contributes to its value growth; why other cryptocurrencies will fail for lacking decentralization; his concerns about Central Bank Digital Currencies being used as tools for state control, drawing parallels with China's social credit system and warning of potential surveillance and manipulation; inflation, interest rates, and economic inefficiencies; why the central planning of interest rates is similar to failed Soviet price controls; why interest rates should be market-determined, reflecting true supply and demand; how government deficits and money printing disrupt economic competition, leading to inefficient capital allocation; why he advocates for studying money and Bitcoin; why Bitcoin is necessary as a hedge against centralized economic mismanagement; and much more.
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