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.