Podcast Summary: The "What is Money?" Show
Episode: WiM003 - The Saylor Series | Episode 3 | Technology Themes through History – Harder, Smarter, Faster, Stronger
Release Date: December 7, 2020

Hosts and Guests:

• Robert Breedlove: Host of "What is Money?"
• Michael Saylor: CEO of MicroStrategy and prominent Bitcoin advocate
• Cynthia Lummis: U.S. Senator and Bitcoin supporter

Introduction

In the third episode of "The Saylor Series," Robert Breedlove engages in a deep conversation with Michael Saylor and Cynthia Lummis, exploring the interplay between technological advancements, historical progress, and the evolving nature of money with a special emphasis on Bitcoin. The discussion delves into how technology has historically shaped civilizations and how Bitcoin represents a pivotal innovation in the monetary landscape.

Technology Through History: Harder, Smarter, Faster, Stronger

Michael Saylor begins by framing technology as the primary driver of human progress, emphasizing that successful technologies enhance a civilization's capabilities to deliver force "faster, harder, stronger, and smarter."

• Notable Quote:
  “Technologies that are dominating today, they're dominating because they're able to deliver force faster, harder, stronger, smarter.” [00:02]

Saylor draws parallels between historical technological dominance—such as naval and air power—and Bitcoin's role as a defensive monetary technology. He asserts that Bitcoin channels human ingenuity positively, unlike commodities that "channel human energy into making it worse."

• Bitcoin as Energy:
  “Money is the highest form of energy that human beings can channel. Bitcoin is channeling human ingenuity into making it better.” [00:02]

The S-Curve and Technology Diffusion

Robert Breedlove introduces the concept of the technology diffusion S-curve, explaining how innovations transition from slow initial adoption to rapid mainstream acceptance before reaching saturation.

• Notable Insight:
  “You remember Google Glass, how big that was going to be and how that was a lead balloon. And how many years is it after Google Glass? And it's still not going to happen next year either.” [32:00]

Saylor emphasizes the unpredictability of technological breakthroughs, citing historical examples like the Wright brothers and John Harrison, whose practical tinkering overcame theoretical skepticism.

• Key Quote:
  “Technology fails until it succeeds.” [32:00]

Bitcoin as the Ultimate Monetary Defensive Technology

The discussion transitions to Bitcoin's foundational role in the modern digital landscape. Saylor posits that Bitcoin embodies the ultimate defensive technology due to its indestructibility and immutable nature.

• Notable Quote:
  “If I'm indestructible, I don't have to be the fastest, the shiniest, the whatever, the anything. I just have to be indestructible.” [17:04]

Cynthia Lummis reinforces this by highlighting Bitcoin's fixed supply and antifragile properties, which ensure its scarcity and resilience against market fluctuations.

• Cynthia's Insight:
  “It's all that really matters is that fully diluted figure of 21 million and that the scarcity cannot be compromised.” [19:41]

Breedlove connects Bitcoin's dominance in the digital space to historical control of strategic terrains like the seas and airspace, suggesting that Bitcoin effectively controls the "high seas" of digital finance.

The Role of War in Accelerating Innovation

Michael Saylor discusses how warfare has historically acted as an accelerant for technological advancements, pushing societies to innovate rapidly out of necessity.

• Notable Quote:
  “War has a way of opening your mind because when someone drops a bomb on your head and you're burning or screaming, then the pain causes you to take a more open-minded attitude.” [26:08]

He draws parallels to contemporary challenges, such as the "war on Covid," asserting that crises can propel technologies like Bitcoin into pivotal roles by forcing rapid adoption and problem-solving.

Empowerment Through Digital Technologies

The conversation explores how digital technologies empower individuals by reducing dependence on centralized institutions. Examples include Amazon's dominance through digital distribution and Bitcoin's ability to provide financial sovereignty.

• Amazon Analogy:
  “He was smart enough to leverage the advantages of a digital business model in a really pressure point focused way.” [32:00]

Cynthia Lummis highlights real-world impacts, such as women in restrictive regimes using Bitcoin to gain financial independence, underscoring Bitcoin's role in democratizing access to capital.

• Cynthia's Example:
  “Some of the women at least were able to find jobs online. Whether it's copy editing or anything you can do informational, any job you can conduct online... and they were able to be paid and remunerated in Bitcoin.” [32:00]

Free Markets, Tinkering, and Innovation

Saylor and the hosts discuss the importance of free markets and entrepreneurial tinkering in fostering innovation. Saylor cites historical instances where non-traditional innovators achieved breakthroughs despite skepticism from established experts.

• John Harrison's Longitude Solution:
  “They posted a 10,000 pound prize and John Harrison, who was not a mathematician, his clockmaker figured it out.” [25:23]

Breedlove echoes the sentiment, arguing that Bitcoin epitomizes the free-market-driven innovation that bypasses inefficient, bureaucratic institutions.

• Breedlove's Perspective:
  “Bitcoin is just the greatest expression of that, right. It's just pure, unbendable, unbreakable rules that help you channel energy across time and space and satisfy wants more efficiently.” [39:19]

Bitcoin's Antifragility and Future Trajectory

Michael Saylor elaborates on Bitcoin's antifragile nature, capable of adapting and strengthening through adversities, much like a mycelial network.

• Antifragility Explained:
  “Being indestructible and never aging. Double useful superpower.” [18:03]

Breedlove envisions Bitcoin continuing its ascent, further demonetizing inflationary models and disrupting traditional financial systems, ultimately fostering a more free and innovative global economy.

• Future Outlook:
  “As Bitcoin continues to ascend and demonetize inflationary government business models, some of these functions that governments have bureaucratized will just start to fall to the free market.” [31:58]

Conclusions

The episode culminates in a profound exploration of how Bitcoin not only serves as a transformative monetary technology but also as a catalyst for broader societal and economic shifts towards greater individual sovereignty and innovation. Saylor, Lummis, and Breedlove collectively argue that Bitcoin's unique properties position it as a central pillar in the evolution of money, technology, and human civilization.

• Final Thought:
  “Bitcoin, not only is it magic Internet money, but it's going to make the world much more magical in the long run.” [39:19]

Key Takeaways

1. Technological Dominance: Historical control of strategic terrains like seas and airspace parallels Bitcoin's dominance in digital finance.
2. Innovation Through Crisis: Wars and crises act as accelerants for technological breakthroughs, pushing innovations like Bitcoin into essential roles.
3. Free Markets Foster Innovation: Entrepreneurial tinkering, free from bureaucratic constraints, is crucial for groundbreaking technologies.
4. Bitcoin's Unique Properties: Its fixed supply, immutability, and antifragility make Bitcoin an unparalleled monetary technology.
5. Empowerment and Sovereignty: Bitcoin empowers individuals by providing financial autonomy and reducing reliance on centralized institutions.

Recommended Actions

• Explore Bitcoin Adoption: Consider integrating Bitcoin into your financial portfolio as a hedge against inflation and a means of securing wealth.
• Stay Informed on Technological Trends: Understanding the S-curve of technology diffusion can help anticipate and leverage forthcoming innovations.
• Support Free Market Principles: Encourage and participate in entrepreneurial ventures that prioritize innovation and individual sovereignty.

Resources Mentioned:

• Books:

  • Longitude by Dava Sobel
  • The Moon is a Harsh Mistress by Robert A. Heinlein
  • The Sovereign Individual

• Companies:

  • Swan Bitcoin: Recommended for automated Bitcoin purchases and secure custody solutions.

This episode provides a comprehensive exploration of how Bitcoin stands at the intersection of historical technological progress and future economic innovation, underscoring its potential to redefine the very nature of money and individual empowerment in the digital age.