Podcast Summary: The Peter McCormack Show – "Bitcoin is Reshaping the World with Robert Breedlove" (WBD220)
Release Date: May 5, 2020
Host: Peter McCormack
Guest: Robert Breedlove, Founder and CEO of Parallax Capital

Introduction

In episode WBD220 of The Peter McCormack Show, host Peter McCormack engages in an enlightening conversation with Robert Breedlove, a renowned Bitcoin advocate and CEO of Parallax Capital. The discussion delves deep into the transformative impact of Bitcoin on the global financial system, contrasting it with traditional monetary systems like fiat currency and gold.

Robert Breedlove’s Open Letter to Ray Dalio

[05:03] Robert Breedlove: "Bitcoin as the truest form of monetary capitalism is going to outcompete monetary socialism, which is central banking."

Robert begins by addressing his open letter to Ray Dalio, critiquing Dalio's stance on Bitcoin. Dalio, a prominent hedge fund manager, previously labeled Bitcoin as a speculative bubble, dismissing its potential as a store of value.

[06:02] Peter McCormack: "But before that, I have a message."

Despite the initial plan to discuss Robert's article on "The Number 0 and Bitcoin," Peter pivots the conversation to Robert’s letter to Dalio, recognizing its timely relevance.

[07:03] Robert Breedlove: "It's almost like a university dissertation. How long did it take you to write?"

Robert explains the depth and length of his letter, emphasizing its comprehensive analysis of Dalio's viewpoints and the broader implications for Bitcoin's role in the financial ecosystem.

Primer on Money: Characteristics and Evolution

[11:59] Robert Breedlove: "So in any trading society, people steadily seek to trade things for things that are more tradable or exchangeable or saleable."

Robert provides a foundational understanding of what constitutes money in a society. He outlines five essential characteristics of money:

1. Divisible: Can be broken down into smaller units.
2. Durable: Persists over time without deteriorating.
3. Portable: Easily transferable across distances.
4. Recognizable: Verifiable and resistant to counterfeiting.
5. Scarce: Limited in supply to maintain value.

[14:36] Robert Breedlove: "Government stepped in to preserve some of the shortcomings of gold, like recognizability and divisibility."

He traces the evolution of money from barter systems to precious metals, specifically gold, highlighting how governments intervened to enhance money's functionality by introducing coinage and later fiat currency. This intervention led to what Robert describes as a "monetary pyramid scheme," where fiat money became detached from tangible assets like gold, relying instead on government trust.

Bitcoin vs. Gold and Fiat Currency

[18:04] Robert Breedlove: "If we had a bunch of aliens come and land on our planet today and we had to explain them the different types of money, Bitcoin is the best form of money we have, right?"

Robert argues that Bitcoin surpasses gold in fulfilling the five characteristics of money. Unlike gold, Bitcoin offers absolute scarcity, a feature impossible to achieve with physical commodities.

[19:23] Robert Breedlove: "It's like that time where I was buying CDs and MP3s came along... some people just cannot make that leap from something physical to something digital."

He draws parallels between technological shifts—such as the move from physical media to digital formats—and the transition from gold to Bitcoin, emphasizing humanity's gradual adaptation to digital forms of value.

[26:42] Robert Breedlove: "And then bitcoin as the truest form of monetary capitalism is going to outcompete monetary socialism, which is central banking. It's just a matter of energy efficiency."

Robert highlights Bitcoin's inherent design, which includes a predictable issuance model (fixed at 21 million Bitcoins) and periodic halvings that increase scarcity, thereby bolstering its value over time. This contrasts sharply with the inflationary nature of fiat currencies controlled by central banks.

Government Intervention and Monetary Policy

[15:20] Robert Breedlove: "Fiat currency is a pyramid scheme that's been constructed on top of gold."

He critiques the historical and ongoing manipulation of money by governments and central banks, arguing that fiat currencies inherently lead to economic inefficiencies and favoritism towards centralized power structures.

[23:06] Robert Breedlove: "The safety net that is always necessary, but it occurs at a local level."

Robert discusses the social responsibilities traditionally managed by governments, such as safety nets, advocating for these functions to be decentralized and managed within local communities instead of centralized federal systems.

Bitcoin’s Role in Promoting Individual Sovereignty

[30:53] Robert Breedlove: "It's not just money. It's a revolution in financial sovereignty."

Robert emphasizes Bitcoin's potential to decentralize financial power, reducing reliance on centralized institutions and enhancing individual autonomy over one's wealth.

[37:59] Robert Breedlove: "Fiat currency is what enables us to channel and concentrate power into the hands of a very select few people."

He argues that Bitcoin disrupts this concentration of power by providing a monetary system that is transparent, decentralized, and resistant to censorship or manipulation.

Challenges and Societal Impacts

[45:24] Robert Breedlove: "The starting point is money that cannot be confiscated, inflated, or stopped. And that's what Bitcoin is."

While optimistic about Bitcoin's potential, Robert acknowledges the societal challenges in transitioning from fiat to Bitcoin. He discusses the importance of education and journalism in fostering a deeper understanding of Bitcoin's benefits and advocating for a more informed populace.

[52:18] Robert Breedlove: "The government is a monopoly on violence, essentially to prevent violence. Right."

He critiques the role of government as a monopolistic entity that controls resources and power, suggesting that Bitcoin offers an avenue to dismantle such concentrated power structures.

Future Prospects and Final Thoughts

[66:53] Robert Breedlove: "Removes the carrot, I guess, from warfare a little bit."

Robert speculates on Bitcoin's potential to reduce the motivations behind conflicts driven by competition over resources like gold, positing that a decentralized monetary system could lead to more peaceful global relations.

[70:27] Robert Breedlove: "Bitcoin is a revolution in that regards."

In concluding, Robert reiterates Bitcoin's transformative capacity to reshape financial systems, promote individual sovereignty, and challenge entrenched governmental power structures.

Notable Quotes

• Robert Breedlove [05:03]: "Bitcoin as the truest form of monetary capitalism is going to outcompete monetary socialism, which is central banking."

• Robert Breedlove [11:59]: "Money has to be divisible, durable, portable, recognizable, and very importantly, scarce."

• Robert Breedlove [18:04]: "Bitcoin is the best form of money we have, right? It's obvious to you, it's obvious to me."

• Robert Breedlove [45:24]: "The starting point is money that cannot be confiscated, inflated, or stopped. And that's what Bitcoin is."

• Robert Breedlove [66:53]: "Removes the carrot, I guess, from warfare a little bit."

Conclusion

This episode of The Peter McCormack Show offers a profound exploration of Bitcoin's potential to redefine global financial systems. Through Robert Breedlove's articulate insights, listeners gain a deeper understanding of Bitcoin's advantages over traditional forms of money and its role in promoting a decentralized, sovereign financial future. For those seeking to comprehend the intricate dynamics between Bitcoin, government intervention, and individual freedom, this episode serves as an invaluable resource.

Find Robert Breedlove on Twitter: breedlove22
Discover More of Peter McCormack’s Work: Visit whatbitcoindid.com and explore Defiance News for related content.