Podcast Summary: "The 'What is Money?' Show" | WiM002 - The Saylor Series | Episode 2 | The Rise of Man through the Dark and Steel Ages

Host: Robert Breedlove
Guest: Michael Saylor
Release Date: November 20, 2020
Duration: Approximately 67 minutes

Introduction

In Episode 2 of "The 'What is Money?' Show," host Robert Breedlove delves deeper into the historical progression of human civilization, focusing on the transition from the Dark Ages to the Steel Age. Joined by Michael Saylor, a prominent figure in the cryptocurrency sphere, the discussion explores how pivotal technological advancements and societal structures have shaped human progress. The conversation highlights the fragile nature of civilization, the role of standardization, the impact of monopolies, and draws intriguing parallels between historical innovations and Bitcoin's emergence as a revolutionary monetary technology.

The Dark Ages and Civilizational Regression

Breedlove and Saylor commence by reflecting on Episode 1, which covered humanity's rise through the Stone and Iron Ages. In this episode, they navigate through the Dark Ages, a period marked by significant regression in technological and societal advancements. Saylor emphasizes that civilization is not an assured trajectory but requires continuous effort to prevent backsliding.

Michael Saylor [00:02]: "Civilization is not a guarantee, right. It is something that must be continually pushed forward and maintained across time."

The discussion underscores how missing crucial steps can lead to prolonged periods of stagnation or decline, as exemplified by the Roman Empire's fall and the subsequent regression into the Dark Ages.

Key Innovations and Technologies

The Printing Press

Saylor presents the printing press as a transformative yet initially overlooked innovation. He contrasts the Chinese early development of printing technology with the eventual success of Gutenberg in Europe, attributing the latter's triumph to the adaptability of the Roman Alphabet, which required fewer movable type pieces compared to the pictographic Chinese script.

Michael Saylor [05:17]: "If you have the wrong language, you might miss out on commercializing inventions like the printing press."

This example illustrates how linguistic structures can influence technological adoption and societal progress.

The Wheel: Missed Opportunities

An intriguing anecdote shared by Saylor highlights the Native American use of the pottery wheel without advancing to more complex applications like the wheelbarrow or wagons. This missed opportunity underscores how latent innovations can remain unrealized due to cultural or contextual factors.

Michael Saylor [12:10]: "They had the wheel. But they never invented the wheelbarrow. They never invented the wagon."

Standardization and Containerization

Saylor draws parallels between historical standardization efforts and modern logistical advancements. He cites the development of container ships, railroads, and standardized loading facilities as milestones that significantly reduced costs and increased efficiency, fostering economic growth and urbanization.

Michael Saylor [30:20]: "Standardization once again compresses confusion, allowing for quick and efficient execution of actions."

The Role of Monopolies and Empires

Roman and Venetian Empires

Saylor explores how empires like Rome and Venice established monopolistic control over trade networks, using their naval power to tax and regulate commerce. He illustrates how these monopolies extracted substantial value from economic activities within their territories, shaping the development and decline of these civilizations.

Michael Saylor [18:28]: "At the nexus of every transportation hub, there's an economic center."

Modern Parallels: Wall Street and Monopolistic Practices

Drawing contemporary connections, Saylor discusses how modern financial hubs like Wall Street operate similarly to historical empires, with gatekeepers extracting rents through monopolistic practices. He critiques the perpetuation of intermediaries who benefit disproportionately from economic exchanges.

Michael Saylor [24:32]: "These groups are competing to be the head gatekeepers, preserving that gatekeeping to extract wealth."

The Rise of Energy Networks

Standard Oil and Rockefeller

A significant portion of the conversation centers on John D. Rockefeller and Standard Oil's role in establishing a comprehensive energy network. Saylor explains how Rockefeller's monopolistic strategies standardized oil production, refining, and distribution, dramatically increasing efficiency and reducing costs.

Michael Saylor [42:37]: "Rockefeller consolidated the industry to drop volatility and standardize every component along the way."

This consolidation not only stabilized the oil market but also laid the foundation for modern energy infrastructure, enabling unprecedented economic growth and technological advancements.

Impact on Productivity and Economy

Saylor emphasizes that breakthroughs in energy storage and distribution, such as oil, have exponentially increased human productivity. He articulates how these advancements lowered the energy costs associated with everyday activities, fundamentally transforming societies.

Michael Saylor [43:02]: "Oil was originally all about kerosene and lighting and then heating. Then the automobile shot it up by a factor of 10."

Consumer Packaged Goods and Energy Storage

Hershey's, Post, Kraft: Stabilizing Food Energy

The discussion shifts to the consumer packaged goods (CPG) industry, where Saylor highlights companies like Hershey's, Post, and Kraft as pioneers in stabilizing food energy. By developing hypersanitary manufacturing processes and standardized packaging, these companies ensured long shelf-life and safety, revolutionizing food distribution and consumption.

Michael Saylor [47:48]: "They were removing all of the detritus and any uncleanliness from the food packaging process."

Analogy to Bitcoin

Saylor draws a compelling analogy between the CPG industry's stabilization of food and Bitcoin's role in securing monetary value. He posits that just as CPG companies provided reliable storage of food energy, Bitcoin offers a secure, leak-proof medium for storing monetary energy.

Michael Saylor [51:44]: "Bitcoin is the best branded asset in the history of the world."

Comparison to Bitcoin: The Ultimate Monetary Technology

Bitcoin as a Security

Saylor presents Bitcoin as a revolutionary form of security for monetary value, independent of governmental control. He emphasizes its role in safeguarding energy (money) behind an encrypted, decentralized network.

Michael Saylor [31:40]: "Bitcoin's number one value proposition is security."

Bitcoin vs. Traditional Monopolies

Contrasting Bitcoin with historical and modern monopolies, Saylor argues that Bitcoin decentralizes control over monetary value, reducing the need for intermediaries and mitigating the extraction of rents and taxes by gatekeepers.

Michael Saylor [51:54]: "It's a store of value that would not decay or bleed due to bacterial infestation or spoilage."

Programmatic Features and Future Implications

Breedlove extends the analogy, suggesting that Bitcoin's programmability could reduce incentives for violence by enabling trustless transactions. This positions Bitcoin not only as a monetary innovation but also as a foundational technology for future societal structures.

Robert Breedlove [79:46]: "Bitcoin is the ultimate preservation device of monetary energy."

The Steel Age: Foundations of Modern Civilization

Steel and Aluminum: Cornerstones of Infrastructure

Saylor delves into the importance of steel and aluminum in building modern infrastructure. He details steel's unparalleled tensile strength and versatility, which made skyscrapers, railroads, and bridges possible. Aluminum's lightweight properties were critical for the advent of aviation, enabling global connectivity.

Michael Saylor [60:15]: "Aluminum is the one. No aluminum, no aviation, nothing."

Critical Role in Urbanization and Globalization

By mastering these materials, societies could construct dense urban centers and expansive transportation networks, facilitating unprecedented levels of commerce, migration, and cultural exchange.

Michael Saylor [62:12]: "They all kind of come down to networks that move energy around."

Conquest of Infectious Diseases: A Technological Triumph

Saylor highlights the transformative impact of modern medicine, particularly the discovery of antibiotics and the implementation of sterilization. These advancements dramatically increased life expectancy and quality of life, overshadowing even major wars in their significance.

Michael Saylor [66:32]: "Penicillin, antibiotics, and sterilization dwarfed every political event in terms of impact."

He notes the often-overlooked historical narrative that prioritizes wars over medical breakthroughs, despite the latter's profound influence on human longevity and societal development.

Conclusion: Lessons for Bitcoin and Future Civilizations

The episode culminates in synthesizing historical insights with Bitcoin's potential role in future civilizations. Saylor and Breedlove argue that just as foundational technologies like steel and oil catalyzed human progress, Bitcoin stands to revolutionize monetary systems by providing a secure, decentralized medium for storing and exchanging value.

Michael Saylor [51:55]: "Bitcoin is the best cryptographically branded security."

They emphasize the importance of standardization, security, and the ability to adapt to technological breakthroughs without succumbing to monopolistic practices. The conversation suggests that embracing Bitcoin's innovative approach to money could mitigate some of the parasitic relationships historically imposed by gatekeepers, fostering a more equitable and efficient economic landscape.

Notable Quotes with Attributions and Timestamps

• Michael Saylor [00:02]: "Civilization is not a guarantee, right. It is something that must be continually pushed forward and maintained across time."

• Michael Saylor [05:17]: "If you have the wrong language, you might miss out on commercializing inventions like the printing press."

• Michael Saylor [12:10]: "They had the wheel. But they never invented the wheelbarrow. They never invented the wagon."

• Michael Saylor [18:28]: "At the nexus of every transportation hub, there's an economic center."

• Michael Saylor [24:32]: "These groups are competing to be the head gatekeepers, preserving that gatekeeping to extract wealth."

• Michael Saylor [31:40]: "Bitcoin's number one value proposition is security."

• Michael Saylor [42:37]: "Rockefeller consolidated the industry to drop volatility and standardize every component along the way."

• Michael Saylor [47:48]: "They were removing all of the detritus and any uncleanliness from the food packaging process."

• Michael Saylor [51:54]: "It's a store of value that would not decay or bleed due to bacterial infestation or spoilage."

• Michael Saylor [60:15]: "Aluminum is the one. No aluminum, no aviation, nothing."

• Michael Saylor [66:32]: "Penicillin, antibiotics, and sterilization dwarfed every political event in terms of impact."

• Michael Saylor [51:55]: "Bitcoin is the best cryptographically branded security."

Final Thoughts

Episode 2 of "The 'What is Money?' Show" offers a profound exploration of how critical technological and societal advancements have propelled human civilization forward. Through historical analysis and incisive analogies, particularly relating Bitcoin to foundational innovations, Robert Breedlove and Michael Saylor illuminate the intricate dance between technology, economics, and societal structures. The episode serves as both a tribute to past ingenuity and a visionary outlook on Bitcoin's potential to redefine monetary systems and, by extension, the fabric of future civilizations.