The Decrypt Daily: Bitcoin & Cryptocurrency News Podcast - Oct 20: Is Bitcoin a Rival to Gold & Silver? W/ David Morgan

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From the Crypt. Co this is a Crip daily. My name is Matthew Aaron today in the show. Have you ever wondered if Bitcoin can rival gold silver or other precious metals will that the topic of this conversation today? How old is it rival first have to break it down. What does it mean to rival? What is it? Good at what is it? Not good at what we use it for what can't we use it for or which one? Would you want to use when things hit the proverbial fan. David Morgan is the author of the silver Manifesto and I have three copies of the Southern Manifesto to give away to you plus some Bitcoin swag. So if you want to win a book and a t-shirt go to Apple podcast starting today, which is the 20th all the way into the 27th. I will take comments that are written from those days in 1 weed to enter your name into the competition and I will pick a winner next Wednesday the 28th.

From the people who wrote a comment in the past week. So just reiterate go to Apple podcast go to the podcast app. Leave me a rating and a comments and that enters you into in a book and a Bitcoin t-shirt and I want to be clear. I want to be honest. I'm not trying to get 5 star ratings out of you. I want you to tell me exactly what you think the show and be honest about it the course, I want five-star ratings, of course, I'm angry comments, but that's not what I'm doing this. I'm doing this because the more, as I have and I'm assuming that we're doing a good job here. So I'm confident so you to do it. Honestly, the more comes that we have the better we do is search results. So be honest and good luck and I will see you on the 28th to see who won the books and the teacher enjoy the conversation with David Morgan and I will see you tomorrow David. How you doing man? Welcome to the show about today.

Gold and silver and you know what? This is one of those things that everybody talks about when we talk about cryptocurrencies Bitcoin is the new gold or the digital gold or we don't know what that means. I have to have to say that we say something is gold. I think we have to first understand what gold is what is a precious metal. Can you explain it to us? Absolutely. My mission statement is a teaching Empower people to understand the benefits of an honest Financial or monetary system. And if you look at history monetarily, which is one of my main studies you'll discover that gold and silver of in money throughout the Millennia have been there for like 5,000 years every currency that's been on back has failed in his thousands of them throughout history. So the idea that the United States dollar is not going to fail is not well received because you know, the statistics showing look the 1913 dollar worth 100 pennies today by the Federal Reserve Zone account. It's worth about two and a half cents. So we're failing and we're now kind of arguing about how long

What's the last two-and-a-half Sims going to last where is Gold's been money for 5,000 years and silver is actually been money more often more places in Houston or transaction than gold ever has so if you're actually honest until you discover that silver is actually the monetary metal of all time. And what is a precious metal and why is it precious? Like what if we're saying that a gold or silver is used as money throughout history that $5,000 in gold and silver even longer than that, which I'm going to get into it as second. But what does that mean? What makes it worth something the majority of the people themselves. I mean what has happened is if you go back and you'll hear this, you know, well salt could be Bunny and you know cowhide could be money and that type of thing and it's all true. But the actual reality is that people discovered and adapted to golden silver their precious why the precious cuz they're rare they have value in and of themselves, especially silver because this got somebody industrial uses a special attack.

Logical Society. So basically the street there is a money one is that it's has intrinsic value and it's what people want. It's something that they can hold that can look at it has value in and of itself and the other is lawful money, which is an edict. It was a mandate given by government itself. It says You must accept this as money you pay your taxes in this money and we basically rule that is the two threes of money. Most of them have gone back to Gold Standard after the failure of the Fiat was historically use more than gold. What why is that? What it what is it about silver? What's the properties of us over that made it more attractive than gold. We think of gold the most valuable substance on Earth will it isn't but that's what we kind of think of is like the money the gold standard white silver excellent question. It's due to the unit value of an ounce of gold for the last several thousand years up until about the last hundred twenty years has been at a ratio.

Roughly is 16 to one took 16 oz of silver to buy 1 oz of gold the gold is transaction where you buy your house maybe in today's world we buy your car for when you buy your groceries. When you buy your clothes when you pay utility bills when you trade with your neighbor that transaction those types of transactions were conducted and silver there for my statement is factually correct, its silver reviews and more transactions more often in lot wheelies is what makes the world go round. So gold is like a long-term asset for wealth preservation. Where is gold as your daily transaction in in normal Commerce. Is it right now the same price as 16214 gold Circle not even close sweetheart. Goodnight High ratio, which means silver was much less valuable relative to go in March is going to level of around 125. And the last time I took that that level was in the Great Depression and I made the comment and it's backed up by fact that the last time we got to that ratio we saw

Horrible economic shift during the 1930s and it wasn't just the Great Depression that you asked if it was actually a worldwide situation. So my let's say leap of faith and it's not a good one is it we're probably going to experience something similar again on the slippery slope of Doomsday scenarios when it comes to our financial and monetary system in a minute, but I want to go back to you backing. You said that every currency that has failed real time is because it stopped being backed by something gold silver real estate or or anything like that. Can I can you tell me about that shift? And I guess my question after you told me about that historical shift why if we see historically that that would be the ship Would we not want to back our currency the truth is that we every time I almost every time that that happens governments banks are forced to go back on some type of sound money system and if you look at what has

Turn down in the United States. Go back to the founding of that man. Looks the monetary history of the continent. I wasn't done back situation and it was a failure. And this is one of the reasons when the Constitution was written that it was put in that you can only coin mine again and had to be gold or silver. So they had their own experience before they started the foundational document. That was you know, what we all know something so we were on the gold standard up until August 15th 1971 and believe me when Nixon took us off the gold standard basically broke the contract with the world they lived on our promise everyone that was aware of monetary history such as yours truly and many others that where you're my peers said this isn't going to end well, and here we are today. It's not in there and when we got off the gold standard with it was at the Bretton Woods agreement. That's when we got on it. It was assumed we got on it. Yeah. Yeah after World War II build who needed something trust is broken down.

See, there's no trust issue with the precious metals basic realistic counterfeit in which is rare could happen. But mostly it's I trust gold is gold silver is silver. So you got something that you know in Han that doesn't question. Where is if you go with afiada psycho, what's the productive capacity of Canada or does Australia have more a natural resources than Japan or this type of nonce? None of that all those you hear that type of questioning on the internet and hear it even and lectures really isn't truth Fiat is basically how much they print versus the other guy. The other nation-states is printing so which ones failing the fastest is like putting the fastest and then it comes down to reserve currency with the u.s. Steel hole. So the belief system is well the dollars that dollars as good as gold there still people think the dollars is good as gold because it once was and now we're at a point where this massive amount of Fiat printing added about thirty percent.

To the money supply when the last few months. This does not portend. Well for monetary history were looking at an inflationary rate that's going to exceed with the feds Mandate of 2% which is a ridiculous number, by the way, if you look at the truth, you're running about a 9% inflation United States right now.

You know, I love that. We've created this base and I think that we have not only historical but we have like a current event. We worked our way up to what we're going to talk about next which is what what is bitcoin rival gold and silver and I we've already set the base of how it's backed by something that has been used go to Silver precious metals been used for millennium of being a of value. So why does Bitcoin have anything on gold or silver? Well the risk of being the last time on your podcast it doesn't however, let me continue Bitcoin is not digital gold. But what Bitcoin does have is what we might try and have tried and it works fairly well and that is restricted money supply. That's what Bitcoin has. So it's equivalent to the treasury taking back to bring the money and the issuance of the money right now that you're free prints money for a private Corporation Called the Federal Reserve which actually loans Money to the United States. So that's why we have

Death and the death has to be paid back by the people at large and it's impossible to pay it back at this point. So a restricted money supply means we only have so much there for is more valuable because you're not creating more of it and diluting it. And so that's a Bitcoin has in common with a restrictive currency, which is much better than the print to infinity and crafts return to have a currency crisis. Where has gold is Above & Beyond at because it has intrinsic value of another in and of itself. So I would say Bitcoin Is Not Gold but it is similar to a restricted currency, which is much more advantageous to the people at large doesn't sense to it. Then. What is the I would say European on the purpose or the use case of something like Bitcoin in our day-to-day life or within the Global Financial system in general. Thank you. I wrote an article that still on the web and it's called My Two Bits about Bitcoin.

I think it's probably 5 years old by now so you can look up that and read it and I look if I'm a free-market type and I'm very much so in the market knows more than me or anyone else for that matter. That's my belief system. Then who am I just did a Bitcoin. Is it the next monetary system? I'm not let the market decide and obviously the market is very favorable to bitcoin. So that ain't that statement. Number one number two is my premise is that they'll be a melding of the two, they'll be a melding of the distributed Ledger the blockchain and precious metals and that will be the ultimate currency at one point in time. And I think it's in our near to longer-term itchin future. I don't think it's years out. I think it's actually taking place now and this is I think the direction that people are going to head because a lot of these cryptos are well and good and look at how many have some type of acid-base. I mean, there's some of their back by Cobalt for some of the back my real estate in the back by the food stuff. So I think this is the Direction people

I want to know what what am I getting some don't it's like well since electronic digit and the same really in theory as the money supply now the US dollar and that's what I think we're got we have to really examine excellent. I love that. I love that. You know that you said that there's going to be a bridge between the old Bitcoin and commodities in really hard assets II person also think that I don't think that everybody will be running around with Bitcoins and in purchasing yet. I think that Bitcoin to blockchain does open up a lot of avenues to one put our assets within the blockchain also be able to transact borderless. You don't transactions around the globe in a way that we never thought of before we send it for sin Innovation from the banking system the financial system to figure out how to do this better that it fits and everybody's needs and wants out of our financial system that we're not currently getting and you know, as well as protecting our value the value of our wealth that mean that you're saying the bank is not worth as much as it was 20 years ago.

And we all know that where do you think we're going from here? That's what I want to know is where do you think we're going from here? You said that this me a building between Technologies and hard assets and precious metals. Where do you think we're going in? Can you do me a favor and just suppose that with the inflation rate that you just said 9th. You think it's at 9% you think that it was printed 30% more dollars into the system right now because of covalent told you don't see me this package. Where do you think we're going and what is it going to look like we're going to go into inflation a few people realize right now. There is a lot of problems in the food situation, Global basis. So a lot of it will actually driven by supply problem, but most people don't look that deeply and I'll see that the grocery bill is much more month to month gase see your restaurant Bill everything dealing with food will increase rather rapidly and most Americans particularly will look at that is inflation part of its inflation and part of its Supply, but what will happen is a

The shift in Consciousness and that's all it needs. This is how these monetary systems in there's a rush to something that they trust right now the whole system can be trusted and excuse my rampant. You can't trust basically the legal system. You can't trust the food supply for anti-gmo. You can't trust the political class. You can't trust the educational system. I mean, there's so many things that we now that are away question. And so when everything that involves money, I mean it doesn't matter how rich or poor you are. Everyone thinks about money and very few think what is it worth? What is it worth in the future that Paradigm is being questioned almost everywhere and I'll think you some money supply. So I think that's the basis where we're going to go and we're going to look for something that's tangible that has felled value for a long time. And then how do I use it? And that's where the blockchain is so important because in today's world where you have so many was called unbanked These are people that don't have a bank account in

Tunisia is a very good example. I think the percentage of something like 60% of the 30 year old or younger do not have a bank account, but they're very Adept at using their phones to pay for goods and services. And that's the direction we're going and I think the people that lead the melding between precious metals and cryptocurrencies are going to be in the lead because now it's on your phone. You're not having it in your pocket. You don't have to look at what the daily price is. You just make the transaction to say that this could happen. You know what you were saying, you know, right now we're talking about inflation is socialism Venezuela in Zimbabwe shoes as examples of you know monetary Systems Failing all around the world. Now we're seeing that this printer with covid a lot of money with covet mean we will talk about this later talk about supply chain or talk about all these things. But I mean if we just look back to mm talk about Y2K, you know back in the 80s back in the sixties. It was communism.

It's going to happen. But you know, everything just works out it always does that are we really going to see something that I mean, of course you say why don't know us but everybody's been wrong for the past years are so like why should we care Jackson question? And certainly I will admit that is taking longer than I anticipated. But the fact is all Fiat fails. That's three words all. Fails. If you go back to Vault Terry says all Fiat, we just had some physic value of 0 and maybe we should say eventually but that's the direction. We're headed. I mean, you can look a lot of a lot of facts. When is what you want employment rate look like in the United States you look at the 2008 crisis how many people lost their homes never get back? You can look at the Wade squeeze. I mean the basic ability for the average American to purchase goods and services. Has gone down since 1977. Although the wages gone up. Why is that make you more quote on quote money. I getting more of it.

Yes, but it's worth less basically every year. So that's your answer all Fiat fails. So off the eye fails, and I know that you said that there's going to be a shift in Consciousness. And that's when you going to see money start to shift into other things like hard Assets in Precious Metals food real estate and so on and so forth in maybe even Bitcoin cryptocurrency. What do you think that the average person? Could you just mention the average person the average person should take out of this conversation. What should they do to prepare and if it is sooner than later than we don't have to wait another 80 or 160 years for this quote on quote the system failure and shut down. What should I do to prepare for the maybe short-term in the short-term of a Global Financial meltdown. Will one of my favorite quotes is Chance favors the prepared mind. It's a philosophical and I think the most you can do is to think it through validate what I'm saying and have an attitude that says I could

Adapt I'm anti fragile. Whatever the you know, what happens in the what? I don't have control over the money supply the political class and all that that I am mentally prepared to handle it. I think that's the place to be after that you can get into reality and then you can think about having extra food you can think about doing the second job. If you think about starting an internet business has lots of things you can do that you do have control over but I think the main was attitude we are in Changing Times Obviously and they're changing rapidly another book that influenced me heavily was Future Shock and it gets to the point where there's so many changes. So rapidly that just blow in the mind of a lot of the populist because it's like where I can't even keep up with this attitude is probably the most important and the realization that what I'm saying is basically true go ahead and challenge everything I said, in fact, I think it's best. I think one of the main flaws in the educational system as they're not caught anything education-wise

Does that mean it means we're not talk to his critically think think critically think things through use logic look at both sides and you will determine whether or not something is really bad. I want to say thank you very much for coming on in discussing this with us and I really appreciate the history lesson and that the, you know, philosophical back and forth about what could happen to our monetary system in the future. I hope it doesn't but if it does and I I do appreciate what you said that, you know, it is is it is mental preparedness it is, you know understand that you can adapt and actually before I get off and ask one question. This is my last question. You said that people should be mentally prepared for Change and to adapt future-proof themself understand how to that something is going to ruffle their day-to-day life there had razor habits there nudity in the house. Maybe what do you think? They should specifically prepare for and it's hard to is it easy to say prepare know that doesn't we change

You know, some people don't have that option just so you know prepare for everything. It's a relief is that their health? What do you think specifically people should do to prepare the best you can do is the best you can do which means you should live within your means. You should save doesn't have to be in precious metals or even Fiat. I mean, you could acquire extra food if your budget allows but I really think the whole thing from the bigger perspectives value. What do we value and my generation is a boomer has got a very distorted picture of value value materialism. And that is where the value really lies. Yes money's important. Yes, it transcends everything real value comes down to The Human Experience. Which means how do you interact with other human beings? How do you interact with your family? Are you contributing or are you just taking what is it that makes you get up every morning with you know that zest for Life. We've lost that so

Do the get up value shift? We want it or not. I believe there's like a financial mother nature, and I think that's what we're going to experience. So they'll be some places that are doing actually better than they are now for the most of us. It's going to be less materialistic, but perhaps our values will come back to a balance. We're totally out of balance. We're going to go to shock. It's not the end of the world. In fact in my perspective. It's actually going to in the long-term cause suffering, but come out stronger better more human more interactive with a basis back to real values where we really really love our Human Experience Steven Morgan author of the silver Manifesto David. I want to say thank you very much for coming on the show and discuss this with us. Thank you.

Thank you for listening to this episode of the decrypt Haley tomorrow on the show, which one is better. And what's the future hold for centralized exchanges and decentralized exchanges if in a heated debate will the decks overtake the sex but the sex or are they on two separate paths? I'll see you tomorrow. Happy holidays everybody.
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