Caller: What’s Up with Progressives and Cryptocurrency?

. We have a voicemail number that you can
call and leave me a voicemail. You can call it any time of day two one nine
two David Pakman is the voicemail. Here's I've gotten a lot of messages about
Progressive's and cryptocurrency lately. Here's one such voicemail inquiring about
exactly that. Take a listen. Hey, David, this is Sylvian, I had a question,
so I'm pretty happy into the crypto space. I am a progressive, but I found that there's
a large libertarian group in crypto normally. And one of their big argument is that our
traditional finance is going to collapse because we're just printing a ton of money and inflation
is going to go haywire.

I, I have my reservations about that position
and I would really appreciate you sort of just maybe maybe doing a deeper analysis on
inflation generally in the economy with regard to how our government prints money. I think it would be very insightful, as usual,
and it would be very helpful to be the nexus to the link and just say, here, consider this. So thank you. I've been watching you for like over a half
decade now.

It's kind of crazy to think about. But yeah, these are good topics. I mean, the thing about inflation is the first. First of all, the term printing money at this
point is so antiquated. I mean, we're really the government's not
not printing money. We're talking about digitally creating money,
which you might say that that's not that different than than Bitcoin. And you would be right. The difference is it's a government that is
digitally creating US dollars rather than, you know, an algorithmic process with Bitcoin
that is creating it. I am not big into the progressive anti cryptocurrency
movement. I think that there are concerns about cryptocurrency,
just like there are concerns with government backed currencies, the in the inflation spiral.

People have been proven wrong. I mean, they've just been proven wrong. The United States, if you go back to TARP
and the stimulus under Obama in 2009, the money supply has continued to increase in
the United States. What do you think stimulus is fundamentally
and we've seen very well controlled inflation in the United States. Additionally, our understanding of modern
monetary theory continues to show that that the sort of doom and gloom inflation spiral
claims are the predictions just aren't bearing out. The same people have been making the same
predictions for a really long time. At some point we may get more inflation in
the United States, but that's sort of like the people who are constantly predicting a
crash. Eventually they'll be right, because that's
the way capitalist economies work, its booms and busts. And at some point there's going to be a crash. Some of the other criticisms of cryptocurrency,
like, for example, you know, the energy usage of Bitcoin mining, OK, yeah, I understand
that. But traditional banking also has a massive
energy and carbon footprint.

The physical location components of that banking
industry have huge environmental implications. And the other element of this that I think
is interesting is as we switch over to alternative energy, the bitcoin can be mined with renewable
energy as well. So that one has never really felt felt great
to me. The general assessment that Bitcoin could
collapse at any time. And it's only as good as people's demand or
interest in holding it. Yeah, absolutely. That's absolutely true. And I've made no secret that I guess at this
point it's four and a half years ago, I bought an amount of Bitcoin that at the time was
sort of reasonably calibrated to my financial situation. It's obviously gone 10x since then. My assessment of the volatility of Bitcoin
hasn't changed.

It's just at this point, it seems like it's
here to stay enough that I want it to be a slice of my portfolio. And it's done well so far. It may not in the future that wouldn't justify
its existence one way or the other. And it's really up to everybody to decide
for themselves sort of what financial decisions make sense. But so so I guess my takeaway is there are
good reasons to be skeptical of all sorts of financial instruments, the stock market,
bitcoin, currency exchange, whatever, when I see particularly some sort of hyperbolic
arguments from progressives only applied to crypto when they could apply elsewhere as
well. It doesn't really inspire me to say, yeah,
that's exactly that's more. Give me more of that, please. I think that's where I am. We've got a great bonus show for you today. We will talk about the Elizabeth Warren Bernie
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