Discussion on Bitcoin and Banking Risks

They don't realize they're inside the matrix.

Mm-hmm.

And for most people,

they have never been educated,

and they don't realize that they're in this trap-

Mm-hmm

... in this rat race where they will never be

free,

and they will be forever slaves to the big government.

So some people

are fine being slaves. They don't mind it,

unfortunately.

Yeah.

But I would like to say that most of us don't like it.

We like to be free, in control of our own decisions.

And the sooner we get i- illustrated by Bitcoin-

Yeah

... the better. That's why I just wrote that book,

you know, The Bitcoin

Enlightenment, with some co-authors, and it explains

my

deep,

uh, distrust

and, and how I despise fiat a-

and how I think fiat is the, the biggest fraud around, around,

and that the only way to get out of that fraud

is through Bitcoin.

Yeah.

It makes you responsible. You got to learn to custody your stuff.

Yeah.

You know? 'Cause that's another thing. They, "Oh, my money is safe.

It's in the bank." I'm a banker, you know. I have a bank.

I have twenty-two million customers.

Yeah.

Yeah.

And I know all about the risks. People think that they s- took

the money to the bank, put it there, and that the...

probably sitting in the vault in the backside of the bank. It's not like that.

The money's gone.

Yeah.

You know, it's invested in, in... been loaned to somebody to buy a house.

Yeah.

It's like-

Yeah

... that's what banks do, you know?

That's exactly right. That's exactly right.

So, so the banking system is also

heavily reliant on the central bank as a lender

of last resort. And, you know, because we have the lender of

last resort, then banks take on more risk-

Sure

... than they should.

Yeah.

There was an excellent book from the eighteenth century, 1800s,

called Lombard Street. There's nothing new under the sun.

Everything has been tried, discovered-

Yeah

... and it's the same thing, you know?

If, if you extend

credit without corresponding savings, if you

mismatch investment, uh, horizon with the

deposit horizon-

Yeah

... there's gonna be a problem.