Summary of "The 'What is Money?' Show" - Episode WiM001: The Saylor Series | Episode 1 | The Rise of Man through The Stone and Iron Ages

Release Date: November 20, 2020

Introduction

In the inaugural episode of "The 'What is Money?' Show," host Robert Breedlove engages in a profound conversation with Michael Saylor, CEO of MicroStrategy and a leading advocate for Bitcoin. The episode, part of the Saylor Series, delves into the foundational technologies that have shaped human civilization, tracing the evolution from the Stone Age through the Iron Age. Breedlove and Saylor explore how these primal technologies—fire, missiles, and hydraulics—have been instrumental in humanity's rise to dominance, drawing parallels to the transformative potential of Bitcoin in the modern era.

Fire: The Prime Energy Network

Saylor begins by emphasizing fire as the cornerstone of human advancement. He posits that fire is humanity's first method of channeling energy, serving multiple critical functions:

• Survival and Protection:

  • [00:02] Michael Saylor: "Technologies that are dominating today. They're dominating because they're able to deliver force faster, harder, stronger, smarter. So if we ask the question, what is money? Money is the highest form of energy that human beings can channel."

• Culinary Innovation: Cooking with fire pre-digests food, increasing caloric efficiency and supporting brain development.

• Agricultural and Manufacturing Advances: Fire enabled the transition from the Stone Age to the Bronze and Iron Ages by facilitating metalworking and tool creation.

• Enhanced Visibility and Communication: Fire extended productive hours into the night and served as the basis for early communication systems like signal fires and watchtowers.

Saylor draws a metaphor between fire and Bitcoin, likening Bitcoin to a "fire in cyberspace" that channels human ingenuity and energy toward building a more resilient financial system.

Missiles: Delivering Force

Transitioning from fire, Saylor discusses the development of missile technology as a critical factor in human dominance:

• Asymmetric Warfare: Unlike direct combat with animals, which is inefficient and dangerous, missile technology allows humans to inflict damage from a distance, minimizing risk and maximizing efficiency.

• Strategic Advantage: The ability to deliver force "faster, harder, stronger, smarter" has been a recurring theme in dominant technologies throughout history.

  • [37:13] Michael Saylor: "Missiles are just a tool, but they're illustrative. Fire is an energy network... They are able to deliver force faster, harder, stronger, smarter."

• Evolution of Warfare: From slings and arrows to advanced artillery, missile technology has continually shifted the balance of power, enabling organized societies like Rome to conquer vast territories efficiently.

Hydraulics: Power from Water

Hydraulics emerges as the third primal technology, harnessing the power of water to facilitate large-scale engineering and economic activities:

• Transportation and Trade: The ability to move heavy goods effortlessly via waterways increased economic density and supported the growth of civilizations around regions like the Mediterranean.

• Agriculture and Sanitation: Hydraulics enabled the creation of aqueducts, essential for sustaining large populations by providing fresh water for drinking, farming, and sanitation.

• Engineering Feats: Saylor speculates on the use of hydraulic technology in constructing monumental structures like the pyramids, highlighting the Romans' mastery of aqueducts and standardized engineering protocols.

  • [50:47] Michael Saylor: "The mastery of hydraulics is fascinating... They actually created aqueducts that would bring water from up to 70 miles away to a given city."

The Roman Empire: A Model of Organization and Standardization

Saylor presents the Roman Empire as the epitome of organized civilization, underpinned by advanced protocols and technological innovations:

• Political Structure: The Roman Republic's annual election cycle fostered a dynamic leadership system, preventing the entrenchment of power and ensuring continual infusion of fresh talent.

  • [07:09] Robert Breedlove: "Michael is, as I said, he's the leader of MicroStrategy...He has very deep experience in the fields of technology..."

• Military Efficiency: The Roman military exemplified organized warfare, utilizing standardized equipment and strategic maneuvers to maintain dominance.

• Infrastructure Development: Roman roads and aqueducts not only facilitated military movements but also integrated and sustained their vast empire.

The Importance of Protocols and Standardization

A recurring theme in the discussion is the significance of standardized protocols in fostering cooperation and economic efficiency:

• Interoperability: Standard sizes and measures, like the width of wagon wheels, ensured seamless transportation and communication across the empire.

• Economic Output: Standardization reduced costs and increased productivity, as exemplified by the uniformity of screws in construction and the replication of naval technology.

  • [90:57] Michael Saylor: "Roman roads were the logistics network of the Roman Empire. And if you can move goods and services, if you can move armies faster inside your borders, then your enemies can move inside their borders, then you're going to win."

• Cultural Transmission: The Romans were adept at assimilating and replicating technologies from conquered civilizations, accelerating their own advancements.

  • [89:08] Unknown: "The Romans were very smart at stealing and improving upon ideas they observed."

Collapse of Rome: Monetary and Political Failures

Saylor discusses the factors leading to the decline of Rome, emphasizing the breakdown of monetary and political protocols:

• Monetary Debasement: Starting with Emperor Nero, the Roman Empire began to debase its currency, undermining economic stability and trust.

• Political Corruption: A series of civil wars and the rise of strongmen eroded the Republican structure, leading to a centralization of power that the system couldn't sustain.

• Loss of Integrity: The intertwining failures in monetary and political systems precipitated the collapse of other societal pillars, including the military and religion.

  • [98:17] Unknown: "What ultimately led to the downfall of Rome was their monetary protocol being compromised."
  • [102:03] Unknown: "And then too big to fail institutions."

Lessons for Modern Society and Bitcoin

Drawing parallels between ancient civilizations and contemporary systems, Saylor highlights the relevance of these historical insights for today's technological and financial landscapes:

• Decentralization vs. Centralization: Just as Rome's centralized power eventually led to its downfall, modern centralized institutions face risks when protocols are compromised.

• Importance of Protocols: The robustness of Bitcoin's decentralized protocols offers a contrast to the fallibility of centralized systems, emphasizing the value of immutable, standardized rules.

• Engineering Ethos: The Roman emphasis on engineering and standardization mirrors the foundational principles of Bitcoin, which relies on precise cryptographic protocols and decentralized consensus.

Conclusions

The episode concludes with Breedlove reflecting on the intricate connections between human evolution, technological advancements, and societal organization. He underscores how understanding the foundational technologies that propelled humanity's ascent can inform our approach to modern challenges, particularly in the realm of digital currencies like Bitcoin. The conversation emphasizes the enduring importance of standardized protocols, decentralized systems, and the ethical responsibilities of engineering in shaping a resilient and prosperous civilization.

Notable Quotes

• [00:02] Michael Saylor: "Money is the highest form of energy that human beings can channel. Bitcoin is channeling human ingenuity into making it better."

• [37:13] Michael Saylor: "Missiles are just a tool, but they're illustrative. Fire is an energy network... They are able to deliver force faster, harder, stronger, smarter."

• [50:47] Michael Saylor: "The mastery of hydraulics is fascinating... They actually created aqueducts that would bring water from up to 70 miles away to a given city."

• [90:55] Unknown: "There's an analogy to this in the bitcoin world, too, when you come up with a different feature and a different."

• [102:03] Unknown: "And then too big to fail institutions."

Final Thoughts

This episode serves as a rich exploration of how foundational technologies have shaped human civilization and provides a compelling argument for the transformative potential of Bitcoin as a modern energy network. By drawing historical parallels, Breedlove and Saylor offer deep insights into the mechanisms of societal advancement and the critical importance of maintaining robust, decentralized protocols to ensure future resilience and prosperity.