What will keep bitcoin from devolving into the same situation as the US Dollar?

00:01 What will keep Bitcoin from devolving
00:03 into all of the same problems as the US
00:06 dollar? The answer is Bitcoin was
00:08 architected from literally day one to
00:11 make sure that doesn’t happen. So the
00:13 way the US dollar works, the amount of
00:15 US dollars slloshing around in the
00:17 economy is controlled by the central
00:20 bank. And in the United States, that
00:21 central bank is called the Federal
00:23 Reserve, even though it’s f not federal
00:26 and it has no reserves. So like
00:28 everything in government, it usually
00:29 does the opposite of what the name says.
00:32 So the inflation reduction act increased
00:34 inflation. Uh and the federal reserve is
00:38 not federal and it has no reserves. So
00:41 that is the uh you know just like if
00:43 there’s a ministry of truth, you can be
00:45 assured that its job is to spread lies.
00:48 That is the way government works. Okay.
00:50 So when Bitcoin was invented back in
00:52 2009 and was released, it was
00:55 specifically architected to make sure
00:57 that people could not make more than 21
00:60 million of the Bitcoin. And then the
01:02 Bitcoin are divisible below that into
01:04 you could buy, you know, a fraction of a
01:06 Bitcoin, but the total number of Bitcoin
01:08 is uh capped at 21 million. And the way
01:12 that that is guaranteed is because all
01:15 of the computers on the Bitcoin network
01:18 of which there is more than 100,000
01:20 computers around the world, including
01:23 running on satellites, running on
01:25 servers, running I mean every continent,
01:27 every country. Every there’s just
01:30 Bitcoin nodes. They’re called nodes. N O
01:32 D Bitcoin nodes. I I myself run two
01:36 Bitcoin nodes. They cost about $400. So,
01:38 if you want to run a Bitcoin node, it’s
01:40 about $400. There’s no reason for you to
01:42 run one, though, because there’s so many
01:44 Bitcoin nodes running already that
01:46 there’s really no benefit you get
01:47 because a gazillion people are already
01:49 running nodes. Uh, and there’s
01:51 technically like infinitely more than
01:53 would be required to guarantee Bitcoin
01:56 did not go off the rails. But everybody
01:58 who runs a Bitcoin node has a veto power
02:00 over changes to the rule set of Bitcoin.
02:04 So the most important rule of Bitcoin,
02:06 literally the reason it was invented,
02:08 was to guarantee that there would never
02:10 be more than 21 million, which is the
02:12 opposite of the US dollar. The US dollar
02:14 is guaranteed to constantly lose
02:16 purchasing power because that’s the way
02:18 it’s designed. Even the Federal Reserve
02:20 says they’re trying to make it lose
02:23 between 2 and 3% per year. And often the
02:26 US dollar actually loses more like 4% to
02:30 9% every year. Okay. Okay. So, how does
02:32 Bitcoin make sure that there’s no more
02:34 than 21 million? Well, the answer is all
02:36 of the computers that run the Bitcoin
02:38 software, of which there are more than
02:39 100,000, have a veto over changes to the
02:42 rules. So, if any of those computers
02:45 tries to change the rules, to increase
02:48 the number of Bitcoin, even by one sole
02:51 solitary Bitcoin, it would immediately
02:53 be kicked off the network and which
02:56 would mean it’s all by its loansself.
02:58 For example, the internet runs on a
03:01 protocol called TCPIP.
03:03 And the internet has run on that
03:05 protocol for many, many, many decades
03:07 since the invention, pretty much the
03:08 invention of the internet or at least
03:10 its modern, you know, incarnation. And
03:13 the TCPIP protocol determines how
03:15 computers talk to each other. And if you
03:17 change the protocol so that your
03:19 computer is speaking a different
03:20 language, you are no longer on the
03:22 internet. You are sitting all by
03:24 yourself speaking a protocol that only
03:26 you understand. and your computer is
03:28 talking to itself. Well, the same thing
03:30 happens on the Bitcoin network. If
03:32 someone tries to change the protocol
03:34 rules of Bitcoin, suddenly they’re not
03:37 on the Bitcoin network anyway anymore
03:39 because none of the other computers on
03:40 the Bitcoin network will talk to that
03:42 computer anymore. So, all of the more
03:44 than 100,000 Bitcoin computers are all
03:46 constantly talking to each other. and
03:48 they’re all programmed to cut out and
03:50 exclude and ignore anyone that changes
03:53 anything about the protocol of how
03:56 Bitcoin works. So, the last time that
03:59 this actually happened, it’s never
04:00 happened related to the total amount of
04:02 Bitcoin, uh, literally there’s never
04:05 been I mean, recommending that there
04:07 ever be more than 21 million Bitcoin in
04:10 ever in circulation is like I mean, you
04:13 just get kicked out of the room. Like,
04:15 it’s just the dumbest idea ever. like
04:17 it’s the complete antithesis of uh the
04:21 whole point it was built. I mean it’d
04:23 be, you know, it’d be the equivalent of
04:25 walking into a barn raising ceremony and
04:27 recommending, hey, what if we just
04:28 burned it all down? It’s like we’re all
04:31 here to build a barn. Like why on earth
04:33 would we put it set it on fire? So it’s
04:35 the same thing like you’re never going
04:36 to get support. In addition, every one
04:39 of those more than 100,000 computers can
04:42 veto that change. So, in order to get a
04:44 change through to increase the number of
04:46 Bitcoin, even by a one sole solitary
04:48 Bitcoin, every single person who runs a
04:51 Bitcoin node, would have to agree. And
04:54 guess what? The whole reason they run a
04:55 Bitcoin node is to guarantee that that
04:58 never happens. People run Bitcoin nodes
05:01 specifically to give themselves a veto
05:03 to make sure that the rules never
05:04 change. That’s why I run a Bitcoin node.
05:07 I run a Bitcoin node so that there will
05:10 never be more than 21 million Bitcoin.
05:12 Now, there’s again more than 100,000
05:14 nodes out there and the vast majority
05:17 are run by hardcore Bitcoiners like me.
05:19 So, it’s not like they even need my veto
05:22 power, but it’s like showing up and hey,
05:24 why not? Why not have one more person
05:26 that can veto a a rule change? So, the
05:29 last time something someone changed
05:30 anything about the rules that created a
05:33 kurfuffle was back in 2017. There was a
05:37 huge debate and discussion about about a
05:40 very very technical aspect of Bitcoin
05:43 which determined how big your hard drive
05:45 had to be if you wanted to keep a copy
05:50 of every Bitcoin transaction that had
05:52 ever happened throughout all of time.
05:54 Again, this had nothing to do about
05:56 whether there would be 21 million. There
05:57 was no discussion whatsoever about
05:59 whether there would be 21 million
06:00 Bitcoin. That is set in stone. That will
06:02 never change. That is inherent to the
06:04 Bitcoin protocol. Um, but it was this
06:07 very technical discussion about how big
06:08 your hard drive should have to be. And
06:10 some people wanted it to be larger so
06:12 that bit the Bitcoin network would have
06:14 slightly higher throughput. Uh, and
06:16 other people were interested in
06:17 decentralization where for the rest of
06:20 eternity, you could walk into Best Buy,
06:22 buy a cheap computer, and run the entire
06:24 Bitcoin blockchain and the entire
06:26 network on your personal computer uh
06:29 without basically without having to have
06:30 a large hard drive. Uh, anyway, the
06:32 purists of that won the battle. the
06:35 people who wanted the smallest hard
06:36 drives that could anyone could run on
06:39 their computer at home without having to
06:40 get a hard drive upgrade, they won. And
06:43 so what happens what happened was on the
06:46 day that the people who wanted that
06:48 change uh decided that they were going
06:50 to make that change, everyone who didn’t
06:53 want that change, which was the vast
06:54 majority of people, they just didn’t
06:56 upgrade their software to the p to the
06:58 software that had the change that the
06:60 people wanted. And because the Bitcoin
07:02 uh network software is open source,
07:04 meaning anyone in the world can look at
07:06 the computer code of the Bitcoin
07:08 software, they just didn’t they didn’t
07:10 run that version of the software. It was
07:12 just a different version. It wasn’t the
07:14 version of the software that has all the
07:16 rules that everybody else wanted to run.
07:19 And so on that day, the people that were
07:21 in favor of the change their Bitcoin
07:24 nodes to run a different piece of
07:25 software and they got themselves kicked
07:27 off the network. So if you’re wondering,
07:29 could this ever happen? And it’s like,
07:30 yeah. And you just get kicked off the
07:32 network. So what happened to all those
07:34 computers that were running the Bitcoin
07:36 software that had this tiny little rule
07:38 change that had to do with the size of
07:40 the hard drive that it took to hold the
07:43 Bitcoin blockchain. The answer is they
07:44 all got kicked off the network and they
07:46 had to name their protocol something and
07:49 they wanted it to be Bitcoin even though
07:51 it wasn’t. So they called it Bitcoin
07:52 Cash and the ticker symbol is BCH.
07:56 Uh so Bitcoin Cash BCH.
08:01 So what has happened to Bitcoin Cash
08:04 from 2017 to the present? Well, first
08:07 off, it marched downward like all stupid
08:10 crypto things that are not Bitcoin. It
08:12 marched down and down and down and now
08:14 it is worth less than 1%. It first of
08:18 all it lost 99% of its value. So 99% of
08:22 the value of that protocol of that
08:24 change of that token went 99% of it went
08:28 away and then in the last probably I
08:31 don’t know year it lost another half. So
08:34 it is down to less than 1/ half of 1% of
08:39 what it was previously. Literally it
08:41 lost
08:42 1992 200s of its value because they all
08:46 got kicked off the network. So, how do
08:48 we know that the Bitcoin will not be
08:51 changed and screwed up and go the way of
08:54 the uh of the US dollar? The answer is
08:56 because the US dollar is controlled by
08:58 the Federal Reserve Board of Governors
08:59 and really by the chairman of the
09:01 Federal Reserve, which means Jerome
09:03 Powell is basically the one guy that
09:05 decides how many US dollars are slashing
09:06 around in the economy. So, that’s why it
09:09 will Bitcoin will not go that way. Bit
09:11 uh the US dollar is controlled
09:13 effectively by one person the Federal
09:15 Reserve chairman which is Jerome Powell.
09:18 The Bitcoin on the other hand Bitcoin is
09:20 controlled by more than 100,000 people
09:24 any one of which has a veto power all of
09:27 which have a veto power over any
09:29 changes. So, if somebody tries to change
09:31 Bitcoin to make it more like the US
09:33 dollar, I’m not going to run that
09:35 software on my Bitcoin node. And neither
09:37 will 99.999%
09:39 of those 100,000 people that run the
09:41 Bitcoin software because they all run
09:42 the Bitcoin software because they all
09:44 don’t want it to become the US dollar.
09:46 So, absolutely positively, the thing
09:49 that doesn’t need to change about
09:50 Bitcoin is that there will never be more
09:51 than 21 million. And I can absolutely
09:53 assure you that will never change about
09:55 Bitcoin because the entire reason people
09:57 run Bitcoin nodes and the entire reason
09:59 there’s more than 100,000 of those nodes
10:01 running in the world is that more than
10:03 100,000 people have a veto over any
10:06 changes. And if somebody even started
10:08 talking about changing the total supply
10:11 of Bitcoin to to a number more than 100
10:13 thou or sorry more than 21 million, a
10:15 bunch more people would start running
10:17 the Bitcoin software so that they too
10:18 had vetos over all of it. And again, it
10:20 only takes one person, literally one
10:23 person in the entire planet or in the
10:25 satellites in space because Bitcoin
10:27 nodes run on satellites in space as
10:28 well. Even if one of them did not change
10:31 the software over to make a change, then
10:33 Bitcoin the way it is now with 21
10:35 million continues on forever and that is
10:37 what will actually happen. So, Bitcoin
10:39 will never go the way of the US dollar
10:41 and it is the incredible ingenuity uh
10:43 human ingenuity that enables that to
10:45 happen and uh which is why Bitcoin is so
10:48 powerful and so amazing. So have a great
10:50 day everyone in a world where there will
10:52 never be more than 21 million Bitcoin.