[Music] What what people Miss now I don't Understand why it's so hard Bitcoin is The best savings Technology that's ever been invented Everyone should be doing it just Everyone should be doing It there's no left there's no right There's no Republicans there's Democrats There is in and there is Out money is an asset that exists in the Absence of liability [Music] I have recently invested In you might known by 2.1 Quadrillion uh always always like that Name there you might know him from uh He's talking about a lot of interesting Projects happening with or Not Sorry Corporations adding Bitcoin to their Balance sheets founder CEO CIO of Morgan Creek Capital Mark yuso how are you Doing today doing great doing great how Y'all doing doing f this is an honor This is straight up an honor to have Mark Yus on show thank you Nick Nick's Big big fan always you know bringing you Up uh all right so you know right now You're talking about node monkeys a Whole lot we can get into that in a Second I'm super excited to talk about The Dominoes that never fell this is Something I talk about on this channel a Lot Mark and it's the the promises that
We we thought were going to play out in Q4 2020 if you recall lots of uh chatter Of oh inflation's going to be pretty bad These corporations have tons of cash Just sitting in a bank account doing Nothing well not doing nothing losing Value quarter after quarter and they Have a fiduciary responsibility to their Shareholders and then next thing you Know Michael sailor he's doing a big Symposium with all these S&P 500 CEOs Elon Musk is on board months later El Salvador I'm like this is happening Apple's going to be adding Bitcoin to The balance sheet Amazon's going to be Adding it all these companies are going To be adding I can't wait for these Dominoes to fall you how big the Tesla Domino is no other Domino fell well now We're starting to see little dominoes Fall am I imagining it am I too bullish Or we might see some serious Corporations add Bitcoin to its balance Sheet in 2024 what do you think no well I clearly I love the leading question so Uh I I've been tweeting about this this Week so I have recently invested in what Such corporation uh Japanese corporation Called metap planet and uh myself and Jason Fang and a number of others So uh Simon gich has has run this Company for a number of years and he Realize that you know the the issue is Worse in Japan than it is in the US
Because the Japanese Yen has been on a One-way downward path since 2011 it went From 85 Yen per dollar to 152.5 this morning I mean it's just Brutal and he finally said you know what We're we're going to take a page out of The the Sailor Playbook and or micro Strategy Playbook and you when when a Play works you should run it and to your Point lots of corporations in the United States who are sitting on these Mountains of cash you know Buffett for Example but Buffett's never going to do It right because he calls it it rat Poison squared I'm like what does that Even mean And how do you even know what rat poison Tastes like unless you're a rat no I'm Just kidding around um so yes other Companies are are going to do it it'll Be smaller I think at first and there's Probably some that have done it but they Don't really want to talk about it Because if it doesn't work and and you Can't have a short time Horizon for this You have to have a long time Horizon and You have to have the ability uh in the Company to Access Capital markets to Grow and and I think uh that means you Have to have good reach and good Relationships so good management so I Think you know not every company should Should probably Jump Right In if you Don't have people who are well versed in
In the Segment actually that's everyone should Be doing it just everyone should be Doing it I was gonna say Mark I I just Had a quick question I you know Japan Kind of has like a special place in the Bitcoin lore um there is a ton of you Know blockchain development there um I I My understanding is and I'm I'm more of Like I'm I'm always going to be a Perpetual student of money I kind of Really finally understood it in my late 30s um and so I understand that you know The Japanese economy and its um you know Demographics are also in a slide and J Japan also correct me if I'm wrong They're the biggest or second biggest Holder of US Treasury It seems to me that the the whole US Treasury kind of like Time Bomb has Definitely been a poison pill to the Japanese economy is that is that true or Am I am I not coordinating that Correctly no 100% true look look Japan If you go back to the late 70s early 80s And you went to Harvard Business School They were teaching classes on how to Emulate Japanese corporations absolutely You know telling you to do the Calisthetics in the morning and Everybody wear the same uniform and and Sayaz Imus in the Morning I mean it was Japan was it I mean it was Japan Inc and You know the stock market just a couple
Months ago made the old high from 1979 we're in 2024 y'all I mean that That was a long time C between between Peaks and so It it's this interesting dynamic in that Demographically Japan is 11 years ahead Of the United States so everything that Happens in Japan happens in America 11 Years later so Japan had their no I'm Sorry it was 1989 not not 1979 1989 um So 1989 Japanese stock market Peaks 2000 11 years later US Stock Market Peaks now We've then we made new highs late Earlier but it's because we devalued our Currency faster which we'll come back to And what's interesting About assets is they don't price in Their thing right we don't price stocks In stocks right we price stocks in Currency we don't price my house in my House we priced my house in currency so For Value you know I I sit here in Chapel Hill North Carolina and according To Zillow my house went up 50% over the Last couple Years my house did not grow it did not Get more efficient the money got worse So the money getting worse and that's Why Bitcoin prices go up or other asset Prices go up is one Bitcoin is one Bitcoin but we don't price Bitcoin in Bitcoin we price Bitcoin in Yen or Euros Or dollars and you know going down been Making new highs in Turkish ler and
Venezuelan boulevards for for you know a Couple years really didn't have bare Markets in those markets so back to Japan so Japan has this demographic Cliff they have you know more people 65 To 85 than any place on on the planet in Terms of percentages and turns out 65 to 85 year old people are not productive They're perfectly nice people but They're not productive yeah and they Don't spend very much so you have a Deflationary death spiral that occurs When you get to demographic Cliff and again we're 11 years behind Them demographically and so our debt got Downgraded in their debt got downgraded 1996 ours got downgraded in 2007 11 Years later in 2007 uh they said they would I thought 2008 they said no more QE me they said no more Q we're not Going to buy any more Bonds and that was when they were 100% Of uh GDP debt to GDP today they're 220 And they own 60% of the government bonds At the bank of Japan so they kept doing QE so we said a couple years ago no more QE right we're gonna stop doing QE no We're not we're going to keep doing QE And then we're going to go off this Demographic cliff and there is a race to The bottom right when you get overly Indebted you have four choices and this Has been true for Millennia I actually
Did a presentation on this the other day Down in Cayman about power politics and Populism and you go back through the History of Empires they all rise through Power military might and and power they Stagnate because of politics you know Capitalism turns into cronyism and People at the top you know I use the Allseeing eye people at the top start Stealing from the people at the bottom Through this thing called inflation Which is just devaluation of currency And then populism Rises up and you get Kicked out and that ends the Empire Roman Empire fell and then we had the British Empire and the American Empire And eventually we'll have the Chinese Empire and then we'll have the nation Stateless Empire but this this falling Of Empires is inevitable because when You have a lot of debt you have four Choices you can pay it back right with The debt in the United States if you Taxed the wealth of everyone in this Country you couldn't pay back the debt Forget income tax tax you tax the wealth If you stole everybody's wealth you Couldn't pay back the debt so you can't Pay it back second thing you do is you Can restructure it but to restructure it Someone's got to take their side so are The Japanese going to take 60 cents on The dollar hell to the no Chinese gonna Take six cents of dollar hell to the no
So they're you're not going to Restructure it you can default on it Uh-uh because if you default on it you Get kicked out of power and the only Thing politicians care about right There's no left there's no right there's No Republic There is in and there is out and when You're in you do or say whatever it Takes to stay in and when you're out you Do or say whatever it takes to get in Donald Trump was a lifelong Democrat he Ran as a Republican or whatever he calls Himself and he got in right that's how It works you get in you stay in so your Only choice is to devalue and that is Exactly what Japan has been doing since 2011 um aisan came in and said we have One goal we will devalue the currency And that will make asset prices rise and People will feel wealthier and they'll They'll engage more and so prices go up But they're not going up in real terms They're going up in nominal terms here's A crazy stat stocks everyone says They're at new all-time highs right no They're not no yeah not real value yeah In Gold they're the same price as 1996 1996 same price when you're pricing gold Because gold for 5,000 years has been The only money money is an asset that Exists in the absence of liability Everything that we think of as money is Currency currency is backed by debt it
Sits on top of gold gold sits in the Central Bank vaults and then we build Money on top of it through debt currency I'm sorry currency and so gold for 5,000 Years a sing single ounce right has Bought a fine person suit from Cleopatra's time to a suit of armor to a Zoot suit in the 20s to savvo row today You exchange one coin and you get a fine Person suit the problem with gold is It's not very divisible and it's not Very portable like if I had a bar which I don't have one handy but if I did Bob Mendez you don't have gold bars in your Closet like Bob And but I'm not going to show you where Online hollowed books behind every one Of those books has a bar shap cut out of The pages and but okay so I grab a gold Bar and I'm gonna break it into three Pieces now look I'm not strong enough to Do that so even if I could do it yeah I Couldn't stuff it in the computer and Send you each a third of the bar but I Can send you Bitcoin instantaneously Because Bitcoin is more divisible and More portal and and the reason I Am Hash 2.1 quadrillion is there are 2.1 Quadrillion Satoshi in the world or There will be when we're at the end in 2140 and that's each Bitcoin divisible To 100 million Units and I long for the day when we no Longer talk about the price of Bitcoin
Right I mean I have the buy Bitcoin sign Back there yeah our chat L that thing is That the one is that the one that was Behind Janet Yellen no here that is that Is an original I got it from Christian It is signed it is numbered but I tried To buy the Original and he Said yeah okay but I really think it Should be in a museum like it will be in My museum the yuso museum and he he Declined and so he but he did make me That and and gave it to me or didn't Give it to me I bought it from him and Um but now it comes out this morning uh That he is is going to auction the the Original so I I will be at the auction But my guess is I will lose to someone With with more money than than I have You know that kind of brings me to my Next question here and that's people Spending their Bitcoin and OG Wales you Know early miners people that have been In Bitcoin for more than 10 years are They more willing to spend their Bitcoin Versus other assets because you know you Tweet about a node monkeys a lot and Bitcoin defi is starting to flourish and We got a Bitcoin meme meme coin season Probably small correction months one Small correction I tweet about onchain Monkeys a lot yes I also tweet about Node monkeys and and runes and Everything
Elsey monkey monkey I mix up my simeons I apologize but you Know you know we haveit people that are In Bitcoin for a long time and almost The longer they're in it the less likely They want to spend it and it's you know I'll never buy that scoin I'll never buy That new defi protocol I'll never buy That protocol that has has a stable coin On it I just I'm a Bitcoin Maxi I'm a Bitcoin you know I'm a I'm a cipher Punk Will these same people that would never Buy ethereum would never buy salano Would never buy cardano will these People do you think they'll be inclined To buy a meme coin you know say will the Will will there be bitcoiners that exist That we'll never touch Dogecoin but will Just be deining into these meme coins Like there's no tomorrow that's a great Question I mean that's a great question You know I I I have fun with the Maxis Because I'll go into a a Bitcoin Maxi Space and they're like get out here you coiner I'm like what are you Talking about I have more Bitcoin than You and that's not a brag it's just it's Just real and and that's just luck right I'm not again it's not a brag it's it's Just don't call me just because I am a Technology maximalist and so yes I own Ethereum I was an early investor in Salana not because I'm smart but because Kyle was smart and we invested with Kyle
And look I made a lot of money in salana Now salana I got in real trouble because You know about a year ago I was on a Show and and I was they said well what Did you do with your salana bag I said Well I sold most of it why well because We made like 2,000 times our money but But I sold Because it was breaking right I said Were vaporizing and the community went Bsh crazy they like yeah we we never Roll back the chain said I never said You roll back the chain what I said was Transactions go out the Network's Congested and they don't settle and Unless I'm watching resubmit it well now 75% last weekend so so anyway so this This guy reached out to me and he said We fixed it like all right show me so he Walked me through and we set up a Phantom wallet and he bought me marusco Dosa and he sent me some you know he Sent me $10 on on and look the Phantom Experience sending Usdc far superior than than any of the Other ones I've looked at fine fine way Better but it was cheap it was fast but Here's the thing if 75% of transactions Don't settle because the Network's Congested we got a problem and So I I like things that work and I Like and here well the bottom line is to Answer a question are Maxis Bitcoin Maxis gonna ape into ordinals and runes
Now a few myself included because I Actually consider myself a Bitcoin Maxi Although they're true Maxis would say Oh No you're not like I own some ordinals I Own some runes and I'm pretty excited About you know the runes launch um Coming up So I I own pre- runes I don't own runes Yet I own pre- runes but I'm pretty Excited about what what's going on there Because Inscriptions enable higher transaction Fees which means the miners get Compensated and the Network's more Secure so I like that but I don't I Don't think the true Maxis like the real Hardcore you know you can pry the Bitcoin out of my cold dead hands well Here's the problem with that I ask these People all the time how much money you Have in the bank Like what are you talking about like Well how much money do you have in the Bank well that's not the same like yeah It is because it's not your money right You live in a world where you still need To spend in Fiat right you can't buy Coffee I mean you can buy coffee in a Few places with Bitcoin but bottom line Is most of what we do is in can't pay Your taxes you got yeah we're not Immortal vampires we have to you know we Have bills and you know F and shelter Yeah what what people Miss now I just
Don't understand why it's so Bitcoin is the best savings Technology that's ever been invented Full stop it's Money that doesn't Devalue it actually is deflationary Instead of inflationary and so it's the Best sa now when do you spend your Savings not Never not never you spend it when you Have a big expense right you want to buy A house you want to send your kids to College you want to take a vacation so This you know this whale that bought it At I think it was like 70 cents or Something no 50 cents and he held it all The way to 70,000 and sold a th000 it was like oh My God you know he doesn't have Diamond Hands like what are you talking about at Some point you need to replenish the way You have to think about it is three Buckets right we all have a liquidity Bucket 10 to 15% of our wealth that we Need to spend for our Lifestyle then we have a get-rich bucket Right 10 to 15% that's for all the crazy Ideas you know the brother-in-laws condo Deal the the hot stock tip you got from Your friend you're gonna lose all that So just keep it small but that's fine And then you have your savings bucket And that's 70 to 80% of your wealth and And the Boomer approach is 6040 7030
Diversified portfolio stocks and bonds Well now this incredible asset digital Assets has come along and now you can Diversify into those things and you Could even say well with Bitcoin I could Just I could swap that whole portfolio Into Bitcoin fine you want to do that That's fine that that could be your Savings but here's the thing that 10 to 15% in your liquidity bucket there's a Hole in the bottom it's going to drain So you got to keep replenishing look at It and as the Bitcoin keeps to Appreciating remember Bitcoin doesn't Grow It's the currency that's getting worse Or the demand is rising right supply and Demand and I don't see why that's so Hard and I don't see why people look at It as a negative if you take some of Your Savings and spend it that's how life Works yeah like I said you know we're Not vampires people get mad how dare you Spend that Bitcoin how it's like you Know that person needed a vehicle I call Me crazy but you know maybe buying a Vehicle so they can go back and forth to Work to hey maybe buy more Bitcoin in The future could be a good thing well It's great talking to you mark uh Mark Folks if you want to listen to Mark some More they have a webinar coming up in About a week it's April 25th long short
Equity is back feur uh featuring himself And Corey Lester it's Morgan Creek Capital Management check that out uh Really really great talking to you one Last so every week we also do a what we Call the ABCD news Roundup AI block Chain chips data if you go to at digital Currents you can you can find that that Uh YouTube as well as uh Spotify and Apple and thanks for having me on and We'll talk again soon always a great Time everybody smash the like for us buy Bitcoin sign F he's he might get the Original all right this guy is a true Maxi even if he bought some Salon we Forgive you we love you best thanks y Right that was good
