The Charlie Kirk Show - February 10, 2021


Making Sense of Bitcoin and Unpacking the Crypto Craze


Episode Stats

Length

27 minutes

Words per Minute

146.37682

Word Count

4,040

Sentence Count

328


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

Transcript

Transcripts from "The Charlie Kirk Show" are sourced from the Knowledge Fight Interactive Search Tool. Explore them interactively here.
00:00:00.000 Hey everybody, what is happening with Bitcoin?
00:00:02.000 What is the status of our economy?
00:00:04.000 We go through the cryptocurrency craze and we dive deeper into what might be coming, which is inflation.
00:00:11.000 Email us your questions, freedom at charliekirk.com, to contact us directly.
00:00:16.000 If you'd like to support this program, go to charliekirk.com/slash support to support our team of editors, researchers, fact checkers at charliekirk.com/slash support.
00:00:26.000 The economy is on our mind.
00:00:28.000 Cryptocurrency is rising.
00:00:29.000 We dive into it.
00:00:30.000 Buckle up, everybody.
00:00:31.000 Here we go.
00:00:32.000 Charlie, what you've done is incredible here.
00:00:34.000 Maybe Charlie Kirk is on the college campus.
00:00:36.000 I want you to know we are lucky to have Charlie Kirk.
00:00:40.000 Charlie Kirk's running the White House, folks.
00:00:43.000 I want to thank Charlie.
00:00:44.000 He's an incredible guy.
00:00:45.000 His spirit, his love of this country, he's done an amazing job building one of the most powerful youth organizations ever created, Turning Point USA.
00:00:53.000 We will not embrace the ideas that have destroyed countries, destroyed lives, and we are going to fight for freedom on campuses across the country.
00:01:02.000 That's why we are here.
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00:02:14.000 What on earth is causing this increase in Bitcoin?
00:02:20.000 What is Bitcoin?
00:02:21.000 What is cryptocurrency?
00:02:22.000 Now, some of you already know what it is and some of you own it, but you probably actually don't know how it works, to be honest.
00:02:28.000 I've met a lot of people that say, yeah, I own a lot of crypto.
00:02:31.000 I'm like, okay, that's terrific.
00:02:33.000 Can you tell me actually how it works?
00:02:34.000 And look, I even have limited knowledge to the extent of how the technology works, but I understand enough of how it works at least pragmatically, at least how we use it and how its limitations and its difficulty.
00:02:53.000 The Biden administration is now trying to pass a $1.9 trillion stimulus bill, $1.9 trillion.
00:03:01.000 So where are we right now as far as our economic conditions?
00:03:06.000 Well, if you look at the stock market, everything looks great.
00:03:08.000 Record highs, booming indexes.
00:03:13.000 I call this stock market a sugar high.
00:03:17.000 This is not based in reality.
00:03:20.000 Valuations have gone to unrealistic limits.
00:03:27.000 We have tens of millions of people still underemployed or unemployed.
00:03:32.000 Here are some facts just of where we are right now in the economy.
00:03:39.000 In the last year, we have seen the largest increase in personal income in 20 years.
00:03:46.000 In three months, there's been more increase in our deficit than the last four recessions combined.
00:03:55.000 The Federal Reserve, the Fed, in six weeks has bought more treasuries than they did in the last 10 years, six weeks.
00:04:05.000 Corporate borrowing, which traditionally goes down in a recession, went up in the last year, $400 billion.
00:04:16.000 Borrowing went down in 2008, just to juxtapose that.
00:04:22.000 In 2018 to now, M2 money supply grew 25% more than nominal GDP.
00:04:32.000 So the M2 money supply grew by 25% more than our actual growth.
00:04:40.000 We have seen massive liquidity inputs.
00:04:44.000 And these are not investments.
00:04:45.000 These are transfer payments.
00:04:47.000 We are borrowing from our future to try and keep the current unrealistic economic model alive.
00:04:56.000 It's a long-term debt cycle.
00:05:02.000 We are heading to 4% to 5% inflation easily.
00:05:08.000 For the first time in recorded history, international net investment into China is greater than international net investment into America.
00:05:20.000 First time in recorded history.
00:05:24.000 China is basically wide open, and China has not in the last two years embarked on massive central bank quantitative easing.
00:05:34.000 We are borrowing against ourselves to keep our addiction to cheap money alive.
00:05:43.000 The central bank has nearly destroyed the price of money.
00:05:51.000 So the Biden administration is going to have a couple choices.
00:05:57.000 They can either admit that we are going to stay in this long-term debt cycle and inflate our way out of it with very little growth, which is really good for people that have debt.
00:06:08.000 Why do you think corporations went and borrowed $400 billion in the last year?
00:06:13.000 You know, the best way to forgive debt?
00:06:16.000 The best way to forgive debt is through inflation.
00:06:20.000 By best, I mean best for the borrower, not the creditor.
00:06:27.000 The easiest way, I should say, to forgive debt is when your dollar is next to nothing.
00:06:33.000 It's worthless.
00:06:37.000 We are on the verge of not necessarily an economic collapse, but economic chaos, where we will have dozens of different issues that we will simultaneously try to be addressing at once.
00:06:55.000 Now, mind you, I think we are up against some pent-up demand.
00:06:59.000 If we can open our economy in the next 30 to 60 days fully and completely, a lot of these problems will naturally be solved.
00:07:09.000 But there is one indicator that is fascinating to me that goes to show that there is a growing distrust in our institutions beyond just the political elite.
00:07:22.000 We're talking about the thing that all of us use every single day, dollar bills.
00:07:31.000 As the China virus spread across the globe in the spring of 2020, Noble Gold investors flocked to precious metals as a financial safeguard.
00:07:38.000 Gold is up more than 30% since March of 2020.
00:07:41.000 Silver surged more than 50% over the same period, reflecting the correlation among precious metals during the time of financial volatility.
00:07:47.000 But providing financial protection is not the only role that precious metals play in this fight.
00:07:51.000 Precious metals also have broad applications in the medical field that go well beyond the dental uses most people associate with their value.
00:07:59.000 But providing financial protection is not the only role that precious metals play in this fight.
00:08:03.000 Gold and silver nanoparticles are an essential part of virus research and prevention.
00:08:07.000 As the China virus mutates, science will have to adapt its prevention methods accordingly, and precious metals will continue to stay in demand.
00:08:14.000 As for me, I will continue to trust the team at Noble Gold, a leading authority in the precious metals industry.
00:08:18.000 If you have the kinds of questions I do about your financial mix and how to best leverage precious metals as a hedge against market uncertainty, I encourage you to visit NobleGoldInvestments.com and call their team for a free gold guide called Noble Gold Today and tell them Charlie Kirk sent you for a special gift with all qualifying transfers.
00:08:37.000 We've been getting a lot of emails from freedom at charliekirk.com of people saying, Charlie, should I buy Bitcoin?
00:08:42.000 I say, slow down.
00:08:44.000 First, let you have to understand what Bitcoin is before you even think about purchasing it.
00:08:52.000 Bitcoin, as of the broadcast right now, is worth $46,485 per Bitcoin.
00:09:04.000 Just in that sentence is going to be one of the problems Bitcoin has to overcome.
00:09:13.000 Why?
00:09:14.000 Because I'm valuing Bitcoin in dollars.
00:09:17.000 That's why.
00:09:19.000 So Bitcoin is what is called a cryptocurrency.
00:09:23.000 Started by someone, we don't actually know who this guy is, Satoshi Nakamoto.
00:09:28.000 It could have been a group of people.
00:09:30.000 It could have been a pseudonym.
00:09:31.000 We don't know.
00:09:33.000 It's revolutionary in more ways than one.
00:09:36.000 And you could see why the central bankers have hated this.
00:09:40.000 Russia tried to ban it a couple years ago before actually just deciding to completely embrace it as a way to try to send money quickly outside of the international banking system.
00:09:50.000 But what exactly is Bitcoin?
00:09:52.000 Well, it's open source.
00:09:54.000 So you actually, it has a decentralized ledger.
00:09:58.000 You can see every Bitcoin transaction that happens in real time.
00:10:01.000 Millions of them that are happening.
00:10:04.000 It's all open sourced.
00:10:05.000 And also, it's anonymous.
00:10:08.000 Now, it's not anonymous if people can trace your Bitcoin wallet ID number to you.
00:10:13.000 But if you have an anonymous Bitcoin wallet, no one knows who's actually doing these purchases.
00:10:18.000 This is different than a normal bank where you can never see the ledger of a bank.
00:10:23.000 You don't know who their depositors are.
00:10:25.000 You don't know how much money they actually have.
00:10:28.000 But the brilliance of Bitcoin in the blockchain is that anyone can create a Bitcoin.
00:10:37.000 If you have the coding capacity or even the amount of power it takes, and I'll get to that in a second, to have high computer processing power, anyone can create a Bitcoin.
00:10:54.000 A Bitcoin is really just a series of numbers.
00:10:58.000 But when you have millions of people trying to create the next Bitcoin, and a number is anywhere between 40 to 55 digits with numbers and letters, it takes an extraordinary amount of computer processing power, a lot of energy to be able to guess what the next Bitcoin is.
00:11:24.000 And I'm going in very much layman terms of how I'm describing it.
00:11:26.000 There's a much deeper technological coding infrastructure behind this that even goes beyond my above my head.
00:11:33.000 However, owning a Bitcoin is like owning a specific number.
00:11:39.000 It's within the blockchain.
00:11:40.000 It validates it.
00:11:41.000 It's open source.
00:11:42.000 People can say that that number that you own cannot be replicated or duplicated.
00:11:50.000 The brilliance, though, of what Bitcoin was able to accomplish and solve is that the more people that try to actually create Bitcoin, the harder it becomes to create a Bitcoin.
00:12:03.000 And this was supposed to be a hedge against inflation.
00:12:08.000 For example, the more you try to create Bitcoin, the more energy it's going to take to actually do that.
00:12:21.000 Basically, the mining difficulty becomes exponentially harder with the mining power that is needed as more people get into the space.
00:12:31.000 It was supposed to be a hedge against inflation, and so far it's worked.
00:12:37.000 If I was doing this broadcast one year ago, today, Bitcoin was about worth $9,904 a piece.
00:12:51.000 It is now worth $46,485.
00:12:59.000 How is that possible?
00:13:01.000 The answer is actually has very little to do about Bitcoin and a lot to do about the side of circumstances around us.
00:13:10.000 People no longer trust the fiat currency, which is Latin, that means by decree, because I say so.
00:13:18.000 It's no longer backed by gold system that we have.
00:13:23.000 The gold standard, which predated the fiat currency system, restricted the amount of dollars and the money supply that could be introduced into the economy.
00:13:34.000 There's only so many gold bars.
00:13:36.000 There's only so many dollars.
00:13:38.000 And so the way it used to work is you'd have one gold bar, you go to the bank, you trade in your gold bar for $1,000.
00:13:46.000 They protect your gold.
00:13:47.000 You get the dollars.
00:13:48.000 You can do what you want with it.
00:13:50.000 Created a stable currency.
00:13:52.000 Do you know what a stable currency also used to be a hedge against?
00:13:57.000 Out-of-control government spending.
00:14:00.000 You see, it's harder to engage in deficit spending.
00:14:04.000 It's harder to declare endless and reckless wars when you do not have a fiat currency.
00:14:08.000 When you can't go to the Fed and say, hey, we just need a couple trillion dollars.
00:14:11.000 Don't worry, it won't happen again.
00:14:12.000 Well, you do that a couple times, then you're all of a sudden going to have a quickly deteriorating currency.
00:14:21.000 So what this tells me right here, the fact that Bitcoin is now worth $46,485, is that people are saying, I trust the computer that spits out a number more than I trust the Federal Reserve.
00:14:34.000 That should be a fire alarm, everybody.
00:14:38.000 Some people say Bitcoin's a bubble.
00:14:40.000 Some people say it's completely speculative.
00:14:42.000 That might be true.
00:14:43.000 There's other cryptocurrencies that I think are absolutely speculative.
00:14:47.000 But explain to me this.
00:14:50.000 How is the dollar not speculative?
00:14:53.000 How is the dollar not built on faith and trust?
00:14:58.000 When it comes down to it, our dollar is basically as good as our military.
00:15:02.000 It's that simple.
00:15:03.000 Our dollar is only as strong as the brute force that we have to protect it.
00:15:08.000 It's really that simple.
00:15:10.000 And the psychological trust people have behind it.
00:15:12.000 When you introduced multi-trillions of dollars into the system and not even do investment, it'd be one thing if every one of these stimulus packages, they were doing massive infrastructure projects, rebuilding highways, rebuilding airports, actually improving the condition of the country.
00:15:32.000 Instead, these are transfer payments.
00:15:34.000 These are we're going to go borrow from the 2040 generation that hasn't even come to age yet so that we can pacify our own selfish interests today.
00:15:46.000 It's that simple.
00:15:49.000 So what the rapid increase of value around Bitcoin tells us is that we are on shaky ground.
00:15:59.000 Now, what's amazing, though, is that you know where people used to go to when money was created out of thin air is gold.
00:16:09.000 Now, gold is up, but gold is up nowhere as much as Bitcoin.
00:16:16.000 If you go to the price of gold over the last year, it's up.
00:16:20.000 It's up significantly.
00:16:22.000 In fact, gold is right around, what's it trading at today, 1,800, where a year ago is around 1,600.
00:16:29.000 But that's an expected increase.
00:16:31.000 That's about, what, about a 20% increase, more or less?
00:16:33.000 15%?
00:16:34.000 Pretty good.
00:16:37.000 Nowhere near the increase that we've seen with Bitcoin.
00:16:41.000 Why?
00:16:44.000 It's because the economy is now being driven by late 20 and early 30s somethings.
00:16:52.000 We saw this with GameStop.
00:16:53.000 We saw this with trading volatility.
00:16:55.000 We saw this with a short squeeze.
00:16:57.000 We see this with housing prices.
00:16:58.000 And yes, we now are seeing this with Bitcoin.
00:17:02.000 And you have 32-year-olds that are earning a decent wage that are saying, I trust an anonymized computer program more than I trust the Federal Reserve.
00:17:16.000 What's going to break the back of the U.S. dollar and what is going to only increase the price of Bitcoin is when more and more companies start to accept Bitcoin as a means of currency.
00:17:28.000 Expedia already does.
00:17:29.000 Microsoft is beginning to.
00:17:31.000 Certain car dealerships are saying we now accept Bitcoin.
00:17:34.000 Now, the only problem with that is that Bitcoin fluctuates so much day by day, it's not stable.
00:17:43.000 I think they're going to be able to figure that out.
00:17:45.000 So the question is, is Bitcoin a stock or is it a currency?
00:17:51.000 And the answer is we don't know.
00:17:53.000 What we do know, though, is that Bitcoin is behaving the exact opposite of the US dollar.
00:17:59.000 For example, the first ever purchase of Bitcoin was for two pizzas.
00:18:05.000 Satoshi Nakamoto bought two pizzas for 10,000 Bitcoin.
00:18:11.000 10,000 Bitcoin.
00:18:13.000 Now, my math is a little bit rusty, but if I'm doing the numbers correctly, 10,000 Bitcoin times $46,500, I believe, is $46.5 million.
00:18:28.000 Is that right?
00:18:31.000 Might be more, actually, might be $465 million.
00:18:34.000 I think it's $465 million.
00:18:35.000 Connor will do the math.
00:18:38.000 So the point is that Bitcoin is getting more valuable while the dollar is getting less valuable.
00:18:45.000 It's inverted.
00:18:47.000 It's the opposite of what the current currency model is showing us.
00:18:51.000 So what does that mean for you?
00:18:53.000 What does that mean for you listening right now, if you're driving in your car or listening on the podcast, or if you're listening on the live stream?
00:18:59.000 Because this impacts all of you.
00:19:02.000 The answer is invest in products that will be able to survive inflationary pressures.
00:19:16.000 Land.
00:19:18.000 If you're in an area where property values are going up, the equity you have in your home is going to be well protected.
00:19:26.000 It's going to do well.
00:19:27.000 Land will go up in value.
00:19:30.000 Currencies, gold, silver.
00:19:33.000 This is beyond politics.
00:19:35.000 And let me be very clear, both political parties are to blame for this.
00:19:39.000 But I try to be solution-oriented.
00:19:44.000 If you're in a blue state And you have the opportunity to move to a red state, go there immediately.
00:19:51.000 Because I'm of the opinion that some states now, like Florida, are now going to go seek other currencies.
00:19:57.000 I'm telling you right now, it's coming.
00:20:00.000 You are going to see South Dakota and Florida that are fully open and they have economic success.
00:20:04.000 They're going to say, wait a second, our schools are open.
00:20:07.000 Our businesses are flourishing.
00:20:08.000 Crime is going down.
00:20:10.000 The only thing that might be weighing down the people of Florida is the currency that we're using.
00:20:16.000 What if Florida all of a sudden created their own cryptocurrency?
00:20:18.000 I'm not kidding.
00:20:19.000 People would use it and they believe in it.
00:20:23.000 So what it means for you could be a variety of different things.
00:20:26.000 I'm not going to tell you a certain thing to buy or not buy, but this is a fire alarm.
00:20:32.000 $46,500 for a number that a machine pops up.
00:20:37.000 Now you might say, oh, this is the new tulip craze.
00:20:39.000 It might be.
00:20:41.000 The only difference is that people are buying products with this stuff.
00:20:46.000 It's storing value.
00:20:47.000 There's only a finite amount of it.
00:20:50.000 So I think people scoff at this crypto craze at their own expense.
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00:22:12.000 I want to get to this story here.
00:22:14.000 It's just more of a human interest story around this New York Times reporter that did nothing wrong.
00:22:23.000 So there is a New York Times medical reporter that went on a trip to, I think, Peru, and he went with a group of high school kids.
00:22:34.000 And it came out in the last couple of weeks that this professor said a very bad word while he was there.
00:22:43.000 He said a word that no one should say.
00:22:47.000 And the kids accused him of saying the N-word.
00:22:51.000 And so I first read this story.
00:22:52.000 I'm like, yeah, that's pretty bad.
00:22:54.000 But then I took a pause as I just read the article.
00:22:58.000 I thought to myself, why would a professor do that in front of high school kids?
00:23:02.000 Pretty logical question.
00:23:04.000 And I thought to myself, what was the context of how this guy said it?
00:23:09.000 And so I read this article further.
00:23:11.000 And it turns out that this medical reporter did say this in a certain context.
00:23:19.000 So he was asked by a high school student.
00:23:21.000 This is that chief medical reporter of the New York Times.
00:23:28.000 And he was asked by a high school student on this trip in South America.
00:23:34.000 His name is Donald McNeil Jr.
00:23:37.000 They said, hey, a 12-year-old, high school, not 12-year-old, I'm sorry, 14 or 15 or 16-year-old, says, hey, Mr. McNeil, one of my friends, when she was 12, used the N-word.
00:23:49.000 Do you think that should be reason to kick her out of whatever?
00:23:53.000 And Donald McNeil then asked the kid, and he said, well, what's the context?
00:23:57.000 Did she say it in a rap lyric?
00:23:59.000 Did she say it in a title of a book?
00:24:03.000 Did she say it as a pejorative?
00:24:06.000 And then he repeated the word.
00:24:10.000 He said the word, but he did not say the word with the intent of racism.
00:24:16.000 He simply stated the word as what she was talking about.
00:24:22.000 So the New York Times comes out and says, quote, we do not tolerate racist language regardless of intent.
00:24:30.000 Regardless of intent.
00:24:32.000 You understand that one of the cornerstones of the U.S. justice system is intent.
00:24:37.000 Intent matters a lot.
00:24:40.000 Intent is the difference between somebody who accidentally gets in a car accident and someone dies versus premeditated murder.
00:24:50.000 It's that big of a deal.
00:24:53.000 Intent matters a lot.
00:24:54.000 Did I get in the car wanting to go kill somebody this morning?
00:24:58.000 Or did I get distracted while I was texting and was it reckless manslaughter?
00:25:02.000 It matters a huge difference.
00:25:06.000 In fact, it is the whole point of the U.S. justice system.
00:25:10.000 Intent is supposed to matter.
00:25:12.000 It really is.
00:25:14.000 But according to the New York Times, intent means nothing.
00:25:18.000 Donald McNeil Jr. has now been fired, resigned.
00:25:24.000 You know, that kind of thing where he resigns, but he was really fired because he said this.
00:25:28.000 Now, he also said to the kids he doesn't think white privilege exists.
00:25:32.000 That's the real reason he was fired.
00:25:35.000 Let's not kid ourselves.
00:25:36.000 That's the real reason he was run out of the building.
00:25:41.000 Now, I hesitate to say he did nothing wrong, but he did nothing fireable.
00:25:48.000 Did he have bad judgment to use the word in front of a bunch of high school kids?
00:25:51.000 Probably.
00:25:54.000 Is that worthy of his whole career being obliterated?
00:25:57.000 And by the way, I probably agree with this guy on nothing.
00:26:00.000 If this guy was in charge of the virus coverage of the New York Times, he's been wrong about everything.
00:26:05.000 He's been a fear-mongering writer.
00:26:10.000 That's all I'm going to say.
00:26:11.000 He's been a fear-monger.
00:26:13.000 But I'm going to defend this guy.
00:26:14.000 I'm going to defend Donald McNeil Jr.
00:26:17.000 He goes on a trip with these kids, repeats the word that somebody else said in reference to it, not calling a kid that, and then he loses his job.
00:26:31.000 It's happening, everybody.
00:26:34.000 And you say, what's that?
00:26:36.000 They're going after each other.
00:26:38.000 You see, the Democrats and the left, they're running out of targets to obliterate.
00:26:43.000 And they're going to start going after their own writers, their own journalists, their own screenwrites, their own actors, their own politicians.
00:26:50.000 If they are not appropriately woke enough, and if they have the one thing that they might have done wrong, we will run you out of the building.
00:26:58.000 Donald McNeil Jr. did not purchase the correct progressive insurance.
00:27:05.000 Remember, we talked about progressive insurance being you say a bunch of woke stuff so that in the future, if you use something wrong, you have insurance against retribution.
00:27:15.000 Thanks so much for listening, everybody.
00:27:17.000 Email us your questions, freedom at charliekirk.com.
00:27:20.000 If you have any questions or comments or points of feedback, if you want to get involved with Turning Point USA, go to tpusa.com, where we play off into the sense of urgency to win America's culture war.
00:27:30.000 And if you want to support us, go to charliekirk.com slash support.
00:27:33.000 Thanks so much for listening, everybody.
00:27:35.000 God bless.