00:00 he one is there enough Bitcoin to go
00:03 around if the entire world is using
00:06 Bitcoin for every single transaction
00:08 everywhere in the world all the time
00:09 it’s the only worldwide currency is
00:12 there enough Bitcoin to go around to
00:14 serve that purpose and what if some of
00:16 the Bitcoin is permanently lost now we
00:18 know some of it is permanently lost but
00:20 some people estimate as much three or
00:22 four million Bitcoin out of 21 million
00:25 are permanently lost even though I think
00:27 that number is too high even if it’s a
00:28 million what if some of the bit is
00:30 permanently lost forever uh is that a
00:33 problem uh the answer is there is plenty
00:36 of Bitcoin to go around it could serve
00:38 as the UN the money of the entire world
00:41 and it actually doesn’t matter if some
00:44 of the Bitcoin is lost forever and I
00:46 want to explain why because this is a
00:47 concept that a lot of people have a hard
00:49 time understanding because it’s not easy
00:51 to follow so with any money you need the
00:54 money to be portable so you can send it
00:56 over over uh over space you need it to
00:59 be durable so keeps value over time and
01:02 you need it to be divisible so that it
01:05 can be divided into subunits so that if
01:08 you you know want to buy an egg you can
01:11 use a small amount for an egg if you
01:12 want to buy a house you can use a large
01:14 amount for a house so as long as money
01:16 if we just use two of those three if we
01:18 take the uh the durable part off the
01:20 table then that leaves you with
01:23 divisibility and portability so as long
01:27 as the money is is uh is divisible and
01:30 it is portable any amount of any money
01:34 can be used to uh run an economy as long
01:37 as it is scarce enough which is the one
01:40 sort of overarching macro thing so let
01:43 me tell you what I mean we could run the
01:45 entire world economic system that runs
01:48 on the US dollar we could run that
01:50 entire system on a single US dollar one
01:54 US dollar if that one US dollar was
01:57 divisible enough now right now it’s not
01:59 because the US dollar is only visible
02:00 into 100 pennies obviously you can’t run
02:03 an economy if your entire monetary unit
02:05 is a single dollar and 100 pennies you
02:07 can’t run it but if we divided a single
02:10 US dollar into nanop pennies and Pico
02:14 pennies and uh you know whatever micro
02:18 pennies if we subdivided the US dollar
02:21 into quadrillions of subunits you could
02:24 run the entire economy on a single US
02:27 dollar again the question is is it
02:29 scarce you can’t can’t do that if you’re
02:31 going to turn around and print a second
02:33 dollar or a5th dollar or a$1 100th but
02:36 if the entire thing was limited to $1
02:38 and if they only printed more money at a
02:41 rate of a few pennies per year again
02:44 subdivided into a gazillion sub pennies
02:46 then you could run the entire economy on
02:48 that so once you understand that you
02:50 realize you can run the entire economy
02:52 of the entire world on 21 million
02:54 Bitcoin your only questions are is it
02:56 divisible enough so yes a Bitcoin can be
02:59 uh subdivided into 100 million units
03:02 called satoshi’s and when Satoshi
03:04 Nakamoto the inventor of Bitcoin
03:06 invented Bitcoin he anticipated that it
03:08 would be used for the entire world
03:10 economy so he added up all of the money
03:14 in the entire world that’s used by
03:16 everyone for everything in all economies
03:18 and then he set the basic unit the
03:20 smallest unit of a Bitcoin which is one
03:22 Satoshi which is one 100 millionth of a
03:25 Bitcoin he set that equal to about one
03:29 US penny assuming that the uh you know
03:34 that uh Bitcoin was World used worldwide
03:37 so now right now uh a Bitcoin is worth a
03:41 Satoshi you can get about 10 Satoshi for
03:43 a penny so even with his early math he
03:45 anticipated that Bitcoin would increase
03:47 in value by 10 times its current value
03:50 and there’s been a ton of inflation
03:51 since that formula was worked out
03:53 between 200 2007 and 2008 and so
03:57 honestly you’d need it you know you need
03:58 Bitcoin to be probably 20 times its
04:01 current value 20 20 times 2,000% growth
04:06 even to get close to what satosi
04:08 Nakamoto originally anticipated okay but
04:11 regardless he also set it up where
04:13 Bitcoin could be further subdivided if
04:16 necessary so it could be actually
04:17 subdivided into smaller units so what
04:20 happens when you permanently lose a
04:22 Bitcoin let’s say you start with 21
04:24 million Bitcoin and then somebody loses
04:26 a million of them so about let’s call it
04:29 roughly 5% of the a little less than 5%
04:31 of the total Supply gone for good
04:33 disappears from the world lost in a
04:35 landfill you know lost forever what
04:37 happens well what happens is all of the
04:40 remaining Bitcoin becomes slightly more
04:43 valuable it’s uh the way Satoshi
04:45 Nakamoto the inventor of Bitcoin
04:46 described it is when you permanently
04:49 lose Bitcoin it’s like giving a little
04:51 gift to every single person who still
04:54 owns Bitcoin in the world and if you own
04:57 a lot of Bitcoin you get uh more of that
04:59 gift if you own a little Bitcoin you get
05:01 less of that gift it’s called prata you
05:04 get a prata share so if if 5% of all of
05:08 the Bitcoin that’s that will ever exist
05:10 is lost that means that everybody’s
05:13 Bitcoin in the entire world is now 5%
05:17 more valuable so um so and someone asked
05:21 in the chat where am I living I
05:22 obviously live in Madison I travel
05:24 frequently to the island of Raton uh in
05:27 the Caribbean for the Prosper project
05:29 down there uh but right now my primary
05:31 home base is Madison Mississippi uh just
05:33 like it always has been so to answer a a
05:36 question live
05:38 here so um the uh so to to sort of
05:42 rewind um so yes Bitcoin any amount of
05:46 Bitcoin is usable for the entire world’s
05:49 money if it needs to be more subdivided
05:52 than 100 million units it can be just
05:55 like if the US penny had to be divided
05:57 into tenth of a penny that’s easy to do
05:60 it doesn’t break anything if you divide
06:02 pennies into one1 of of a penny um just
06:06 like with a pizza if you have a pizza
06:08 and somebody
06:10 says well how many slices you know how
06:12 hungry are you because it determines how
06:14 many slices I divide it into the answer
06:16 is well that has no bearing on the
06:19 calories in the pizza whether you divide
06:21 it into eight slices 10 slices or 16
06:23 slices the slices just get smaller but
06:25 what matters when you’re eating a pizza
06:27 is what percent of the hole do I have so
06:30 when you have US dollars what matters is
06:32 what percent of all the US dollars does
06:34 this dollar represent when you own
06:36 Bitcoin what matters is what percent of
06:39 all the Bitcoin in the world does my
06:41 Bitcoin represent all money works that
06:43 way the value of it including gold when
06:46 you have an ounce of gold the value of
06:48 that ounce of gold is heavily determined
06:51 by it’s obviously determined on supply
06:53 and demand as well but the scarcity
06:56 is so much does that one ounce of gold
06:59 represent as compared to all the gold in
07:01 the world so when you’re thinking about
07:03 a money that is what the concept you
07:05 have to understand is any amount of
07:07 money can be used um it’s just a matter
07:10 of is it limited or how fast does that
07:13 amount of money grow in the case of
07:14 Bitcoin there’s only over 21 million in
07:16 the case of gold it grows about 2% per
07:19 year that’s the amount of new gold that
07:21 gets dug out of the ground every single
07:22 year is about 2% so in the case of gold
07:24 it’s about
07:25 2% um in the case of uh the US dollar
07:29 it’s about 7% on average over the last
07:32 100 plus years the US government has
07:34 printed about 7% more US dollars every
07:37 single year on average so the growth
07:40 rate of Bitcoin is uh trending toward
07:43 zero it’s 75% now but it’s it’ll
07:45 ultimately land at zero with only 21
07:48 million Bitcoin so you’ve got you know
07:50 basically the absolute Supply cap of
07:52 Bitcoin you know the growth rate is zero
07:55 the growth rate of gold is 2% the growth
07:57 rate of the US dollar is 7% most of
07:60 world’s uh Fiat currencies which means
08:02 government madeup currencies are growing
08:04 at about 14% a year um so that’s why
08:07 they’re losing value so quickly so um to
08:09 sort of recap any amount of money can be
08:12 used it doesn’t matter if if I if I take
08:15 a $100 bill and I tie it around a rock
08:19 throw it into the RO Reservoir everybody
08:23 else’s US Dollars become a tiny tiny
08:26 tiny little bit more valuable because
08:29 that 100 will never resurface that $100
08:32 is now out of circulation now the amount
08:35 everybody’s money increases in value is
08:37 equivalent to that $100 bill as a
08:40 percentage of all the US dollars in the
08:42 world which is tens of trillions so
08:45 obviously nobody would even notice now
08:47 if 5% of the Bitcoin in the world was
08:50 unrecoverable meaning no one was ever
08:52 figure out figured out how to access it
08:54 or if it was permanently Lost first of
08:56 all that’s already factored into the
08:58 price and second uh um you know it would
09:01 be a 5% sort of a 5% uplift to the price
09:03 of Bitcoin over time but which is a lot
09:05 more than throwing a $100 bill you know
09:07 in in the reservoir still a you know
09:10 still a pretty small percentage overall
09:12 so it does not matter if Bitcoin is lost
09:17 because all that happens is the value of
09:20 the remaining Bitcoin increases to
09:23 absorb the value that was lost or
09:27 unrecoverable I was going to go into
09:29 some details as far as uh you know the
09:32 visibility and portability of gold and
09:34 other Fiat currencies but uh I think I
09:37 will probably save that for another
09:38 video um so uh so to summarize here
09:42 though on this front um some people
09:45 including Michael sailor who owns more
09:47 than 177,000 Bitcoin so he owns billions
09:50 of dollars of Bitcoin he has
09:53 hypothesized that rather than losing
09:55 Bitcoin if you want to gift value to the
09:59 world Pro rat it to everyone you can you
10:02 know if you don’t want to leave it to
10:04 your you know descendants in a will you
10:07 can just destroy your Bitcoin Bitcoin
10:09 now people like um uh you know the vast
10:14 majority of people would not willingly
10:16 destroy Bitcoin and what I was going to
10:17 say earlier is a product like bitkey bit
10:20 T ke Y which is their website is bit
10:22 key. world that sort of product will not
10:25 let you destroy Bitcoin uh it’s built so
10:27 that you can’t destroy the Bitcoin so
10:29 that you can’t accidentally lose it you
10:31 can’t accidentally you know uh you know
10:34 have it disappear or be unrecoverable so
10:36 products like bit key will not let you
10:38 destroy Bitcoin but if you use something
10:40 like a ledger or a treaser which are
10:42 also other Bitcoin Hardware devices uh
10:45 they they don’t stop you from destroying
10:46 it so if you got one of those devices
10:48 transferred all your Bitcoin to it
10:50 smashed it with a hammer and then burned
10:52 the seed phrase your Bitcoin would be
10:54 gone forever no that’s why I recommend
10:57 products like bitkey because it’s
10:58 impossible to accidentally D your
10:60 Bitcoin it’s also impossible to destroy
11:02 your Bitcoin on purpose which again bit
11:04 key was designed so that you couldn’t
11:06 screw it up and one way of making sure
11:08 you can’t screw it up is making sure the
11:10 Bitcoin can never be destroyed but if
11:11 somebody wanted to destroy their Bitcoin
11:14 they could use a ledger or a treaser or
11:16 something like that to permanently
11:18 destroy or not destroy their Bitcoin but
11:20 to make it unrecoverable it will always
11:22 be there on the blockchain but if nobody
11:24 can get access to it then it just sits
11:25 there forever um so it’s you know it’s
11:28 basically permanently lost even though
11:29 there it’s unrecoverable it’s unusable
11:32 but anyway so some people including
11:33 Michael sailor have hypothesized that if
11:36 somebody has a ton of Bitcoin and they
11:38 don’t know who to give it to and they
11:40 don’t feel good about giving it to
11:41 everyone there’s actually a way in
11:43 Bitcoin which is UN unavailable in every
11:46 other mechanism of value there’s
11:48 actually a way that you can gift the
11:50 value of your Bitcoin to everyone in the
11:53 world that owns Bitcoin prata means you
11:56 know uh in equal share uh depending on
11:59 how much Bitcoin they they own and
12:00 that’s by literally just destroying it
12:02 and if you destroyed it the value of
12:05 everyone else’s Bitcoin would go up a
12:07 tiny little bit based on how much you
12:09 had as a percent of the total so if
12:11 somebody who owned you know one 100th of
12:14 one% of all the Bitcoin decided that
12:16 they wanted to effectively gift that
12:18 Bitcoin to everyone else Pro and they
12:21 destroyed Bitcoin equivalent to one 100
12:23 1% of all the Bitcoin in the world then
12:26 everyone else’s Bitcoin would increase
12:28 in value over time
12:30 by 1 100th of 1% because that Bitcoin
12:33 would be out of circulation so hopefully
12:36 that helps you understand that we don’t
12:38 have to worry about there not being
12:40 enough Bitcoin to go around we don’t
12:42 have to worry about the old Bitcoin back
12:45 from 20 200920 2011 when it was hard the
12:49 technology was not very uh Advanced or
12:52 sophisticated to store Bitcoin
12:55 effectively so the Bitcoin that got lost
12:57 in the very early days when it was so
12:59 new that it didn’t even have a price and
13:02 because it didn’t have a price people
13:03 were not even worried about preserving
13:05 its value because they didn’t think it
13:06 had value so they might have had you
13:09 know a th000 Bitcoin but it was
13:11 literally worthless so they just threw
13:13 it away with their old computer because
13:14 they’re like well it doesn’t have a
13:16 price and if it doesn’t have a price now
13:17 maybe it’ll never have a price and so
13:19 they just thrw it away and if those
13:21 1,000 Bitcoin or 8,000 Bitcoin are gone
13:24 for good it just makes the rest of our
13:26 Bitcoin more valuable for all of us who
13:29 still have bit coin so that’s the way
13:31 that works I know it’s a hard concept
13:32 it’s a really hard concept for people to
13:34 understand that any amount of a money
13:36 can be used as money as long as the new
13:39 issuance meaning the new additional
13:40 money that’s created as long as that is
13:42 limited and as long as the money itself
13:46 is Affordable and as long as it is um
13:50 divisible it is sufficient as money and
13:53 Bitcoin has those characteristics better
13:56 than any other asset in the entire world
13:58 it is Bitcoin is more scarce more
13:60 divisible more durable more pable than
14:03 any other money that humans have ever
14:05 invented or discovered in human history
14:08 and that’s why Bitcoin will be the
14:09 future monetary system of the world is
14:11 because it has better monetary
14:13 properties than anything else that
14:15 exists anywhere in the world and because
14:17 it has better monetary properties than
14:19 anything else that exists anywhere in
14:20 the world that’s why Bitcoin is uh will
14:23 ultimately become the future monetary
14:25 system of the world and it’s well on its
14:26 way uh to doing that already so I’ll uh
14:29 I’ll I’ll share some additional details
14:31 about how Fiat currencies are you know
14:34 not are are getting so bad that they are
14:37 not even portable anymore I’ll share
14:38 some details about that in a separate
14:40 video thanks everyone
