Manage episode 189222819 series 42508
"Bitcoin is just the realization that code is speech and money is just code, so money is just speech," Naval tells me.
Translation: When I give you money, I'm really saying I'm taking credit for work I'd done in the past and I'm passing you that credit.
Example: X bakes bread, so X did good for the world. X sold that bread and got money and the money is basically the world saying 'hey, we owe you something for baking this bread'.
And then when X gives Y money for something X says 'hey, for Ys advice and help X is giving Y the money'.
Now the debt the world had to X, X now gives to Y, so now the world owes Y that value or money. "Fundamentally, money is just a story we tell each other," Naval says.
Bitcoin is essentially electronic gold. It can't be inflated. And it is the best store of value. Naval explains in the podcast why this would be an amazing achievement for society. No one can devalue the credit any one person has.
"Bitcoin is basically replacing the role of money being created by institutions, like the governments. Instead money can be created by markets. And by people. And by computers," Naval said. "If bitcoin works it will be the largest transfer of wealth in human history."
Money is being redefined. And there's potentially a huge upside. And potentially a huge downside.
"There are a lot of bubbles and a lot of scams," Naval said. "But if you figure it out you can invest in the safe stuff." So we talked about that. What's safe? What's not? How do I get smart about this?
Make sure to read the full show notes here:
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