Because Network Effect has forced traditional financiers to change their tune on the digital currency. And this is black rocks, c i o, o of fixed income, he told c. N. N. B. B. C. Last friday. His name is rick reader, he said, big queen is here to stay while conceding, that he is not a big bowl reader, said the flagship currency will quote, take the place of gold to a large extent because it is so more functional than passing a bar of gold around, right . This is a remarkable statement because weve heard the argument that big coin is goal to point out that its a prayer to gold, but that has come from the internet from social media, from heterodox thinkers like ourselves. Its not come from a 7 trillion dollar managed fund like blackrock and were hearing it from other folks like Paul Tudor Jones stent arthur miller. And although theres 100. 00 trillion dollars out there looking for a home as part of a managed money environment, they are 7 percent of that 100 trillion dollars of only one or 2 or 3 percent of that money goes into bitcoin. That means the price triples overnight. So im going to ask you a question because i want to try to elicit an answer that you gave to me on the magical crypto conference in our special this weekend about black rock. I asked you about the fact that black rock is the Number One Company to reference your patent on virtual specialist technology. So what do you think about how that applies to virtual currencies, digital currencies, crypto currencies, big queen in particular, and perfects prices. Right . While blackrock is believed the biggest purveyor of the e. T. F. Market, the Exchange Traded funds, and those are derivatives and they are, theres more e. T. F. Than there are stocks. There is a few 1000 stocks and there are many more actual e. T. F. That are packaged to reflect the underlying number. That is the price, but its not actually ownership. And so thats a derivative based on a virtual securities. So my patent of the virtual specialist is how do you make markets virtual markets using virtual securities in a virtual currency. So thats why they would reference that and they probably have come out their own intellectual property to move in that direction. And in the case of pick when, of course, its the private owners that make a difference. And this is why well never have the problem. We have in gold with gold, its driven by derivatives traders, and its highly centralized. And so the gold prices are very slow and low. Thora chick, because wayne is decentralized and its impossible to control from a centralised player. A matter of fact, it is always spinning out toward decentralization. So it has 2 properties that gold wishes it did have, but it doesnt have and then add on top of that, the absolute scarcity which gold doesnt have that either. Plus the utility value. Ok, yes, i can store my value in it and i can use it for payments. Thats true. Yeah, thats all up. And you can understand why Paul Tudor Jones, stan druckenmiller, bill miller over over there, it is major fund group. He has his own fund, but he used to be at legg mason was a massive, massive invest at Asset Management company as well. So, you know, miller was early in pick line years and had johnson abby johnson from fidelity. So these are major institutions with trillions of dollars under management even beyond anything that Paul Tudor Jones or stan talk in miller, the hedge fund, guys, manage these are big, big Portfolio Managers in the place now, right now, i mean this is like when gorillas make you know it makes a complete, makes quite a ruckus. Well, i had not heard about this group situation, but it is interesting nevertheless, to look at the the giants of black rock now entering the space and the fact that were at all time highs again where we were in 2017 on the retail investor. And now were getting to the institutional investor, the guys with not 10000. 00 to their name, but tens of billions of dollars to their name and trillions of dollars to their name. So you know, thats something to look forward to as we go into the end of the year and 2021 we did mention and recent episode that citibank itself is now saying that they believe between will go to 318000. 00 by next year. And a lot of people say, oh, thats ridiculous because who has 318000. 00 while these guys have 318000. 00 . They have several trillion dollars. 318000 dollars is like a lunch tab for them. Right. Rimmer coin is the black hole of money and it sucks. Everything in all 3. 00 out money will be sucked in by bitcoin. Gold pricing will be sucked in by bitcoin. All stores of value will be eclipsed by bitcoin. Everything in the planet, earth will be priced in decline as we head into hyper because it is ation. The mona lisa will be priced in bitcoin faberge eggs will be bought and sold in bitcoin and will be the most sought after commodity in the multiverse. And those 2 without any will be feeling like there are heroes in the midst of this, in the midst. In the midst midst. Yeah. The mist where the gorillas hang out in the mist, they mate, or like the elephants mating. You know the earth moves is what im trying to say. The earth moves when the thundering herd of black rock and the citibank and bank of america, called tudor jones delegate, the will to beasts of the moat. The money will fidelity, and the buffalo. They go on a rampage in the earth moves. And this is whats happening now and big coin, the biggest Money Managers in the world are thundering yes, across the open plains, toward a price point called 3000028 1000000. And everyone in the path is trying to grab as many so toasties as they possibly can to take advantage of this once. And im in a millennium multiverse old phenomenon. Thats a good way to look at it, the running of will the beast. Thats like one of the safari juries, that one takes if youre going to go to africa, to look at a meat, you know, the 5 big game or the will the peace process. Now that cheats, you know, shots from helicopters that are all the documentary and for b. B. C. Makes you see the running of the will to be so there like as many hold the base as there is millions to codas. You know, they have texas size herd of, well the beasts just wondering, cross their wide open plains toward their destiny. And thats why i always get really nervous. Watching the, you know, they always out on the b. B. C. Documentaries. They put a camera right next to all the crocodiles waiting for the one that is a little bit slower than the all theyre the rest of the herd to be eaten. So there is like some people get rats and the exchanges. Some of these will be finance will get wrecked, like that guy who runs a soft bank, one of the biggest, most successful funds in the world. Remember they lost a lot on air b. N. , not air b. N. B. But we work and they made a lot up on the other side. But they got out of bitcoin and the guy said, because he couldnt stand looking at big claim prices anymore. His position, he sold us down, he lost basically 130000000. 00 by selling too early, but he said he couldnt get over looking at the problem. Im familiar with the type. So this is a guy whos allergic to success rate. So he couldnt take the easy trade and bought bitcoin and made billions of dollars. But instead, as we know from the fine journalism from the Financial Press of the wall street journal in the Financial Times and other outlets, he has been bullying him. And his purchase of nasdaq listed stocks in an attempt to artificially boost their price beyond what you would normally expect. And they supply and demand environment and using options as well to enhance those bullied returns. This is, this is like poetry. Yeah, this is like a that which really works. This is it. And as a result he is digging a bigger and bigger hole because the soros is law of reflexivity. Where you can create your own outcome by simply buying lots of stuff in a concentrated way. Only works to the extent that there is finally a bigger sucker who is going to buy all that from you at the end for you can make an exit, but what hes finding is that hes bought so much of this. Nasdaq stuff that he cant exit and it could have blow up because, you know, who is exiting the u. S. Treasury i. E. The taxpayer because theyve been, you know, this reflexivity is in this final headline here. Here at the 12th Natural Market metrics minucci and listed as reasons for letting the feds bond holder bail out, s. P. V. Expire on december 31st. So i remember early in this pandemic and lockdown story that we had the fed do all sorts of quotes of the visit to easing about the, the treasury and the government issued all sorts of programs issuing tens of billions of dollars, hundreds of billions of dollars across the u. S. Economy, or one of the things they did is they created s. P. V. Special purpose field goals. And they created like a dozen of them for the fed. So they gave them actual cash, real money from the u. S. Government for the fed to disperse, to various, you know, buy junk bonds and things like that. Well, announcing it did the work so well, they only ever dispensed like theres 455000000000. 00 and real equity, real treasury bonds, real u. S. Wealth that never got spent so many new chinas asked for a back because the talking up, the job owning the markets, did the work. Everybody, trillions of dollars poured into the markets to front run the fed and their purchases via these p. B. S. But the fed never actually spent much of the money at all. So now the taxpayer is about to get that back. And there, i guess minucci in on the trumpet ministration. Want to give this 455000000000 and a fiscal stimulus before they leave the white house, right . Half a trillion here, half a trillion there, you know, eventually it adds up to real money. Well, were going to take a break, and when we come back much more coming your way. Join me every thursday on the alex im, im sure. And ill be speaking to us of the world of politics, sports business, im show business. Ill see you then. Then walk by wagon that he will go back, ill go out for you boys will pull you out of a good job. It ended mathematician would have it and i didnt do it. It will always be good if it also helps home on a passion to keep it or dont or dont let you people come up to the group to come on in about the how i live and im mad at them and the minimum time because im not bad with the internet, but oh, november creative, i say i give them their genitals. What about nanami them . But al, the only thing is, as it is about is your media a reflection of reality in a world transformed what will make you feel safe . Isolation, full community, are you going the right way or are you being led . So direct. What is true . What is great . In the world corrupted, you need to descend to join us in the depths. Maybe in the shallows. Its been decades since the full of spains fascist regime. But old wounds still havent to yield anything. All of us at the source mean older than just that they seem to, you know, seldons of newborn babies were torn from their mothers and given away and forced adoption that only feaster to this day mothers still search for grown children while looking in hope for their birth parents so what weve got to do is identify the threats that we have. Its crazy confrontation, let it be an arms race off and spearing dramatic developments. Only personally, im going to resist. I dont see how that strategy will be successful. Very time to sit down and talk. Welcome back to the kaiser report. Im max keiser time now to go to march alone. The o. G. Bit calling, minor down there in texas, marshall. Welcome back. Big macs. Thanks for having me. Always a pleasure. All right, so we have some comments from the u. S. Comptroller of the currency. Had to get your feedback on this. He suggests that it is americas geo strategic interest to make sure american bitcoin miners control Bitcoin Mining rather than china, which he claims controls. 51 percent. Ok, 1st of all, destroying a control, 51 percent flat out. No. That used to be the case. It feels like this guys living in 201415 against kind of weird seeing as how he used to work for coin base. Very interesting. Take that shifts verifiably false. So its verifiably false for a couple reasons. You know, and curiously, your comments are, number one, youve got a lot of pulls in china, but the geographic location of those people all in those pools could be anywhere in the world, not necessarily china. And so thats problem number one prob, problem number 2 is as we discovered in 2017 during the block size, wires miners dont control because the notes control because so that those are 2. Very simple things to rebut his argument. If i got it about right. Yeah, you know, its about right having for better or worse, started becoming classic with a few of the people i got 1st hand experience there. All it would take is for the nodes around the pools in china to simply just stop accepting released from them and their power, their blocks or propagate much slower and other pools would be able to win that race. So thats the 1st thing. 2nd thing, a lot of people are quoting a report online with this interactive map. The problem is its only pulling data from about 3 pools, and those 3 pools collectively only control about 2530 percent of network ash or 8. And of those, those all 3 were chinese pools. So the reality is thats extremely slanted information where most people are getting from i did some back of the on the low mass since being tagged on twitter and the report from what i can tell and what my colleagues can till ive kind of pulled together some information, just back of the overload numbers, were looking right around 65 to 70 percent of the hash rate being outside of china. And you can even see that with the big migration that happened a couple of difficulty adjustments ago as the network pass rate dropped by about 30 percent when the miners in china moved from from the north down to the south. So, i mean, all those numbers kind of make sense plus with a little bit inside info, its pretty easy to debunk that. Now the good news is that the u. S. Controller of the currency has woken up to the fact that big point is a jester teach asset. That if a country doesnt have any in reserve, they are in trouble because theyre moving off a foreign c. Standard to a bitcoin standard globally. And some countries have jumped the gun iran as i think last i checked 4 percent of the hass rate. You know, he never mentioned that that seems like a pretty important number. China obviously does have a significant part not anywhere near a controlling interest. And some other countries also are in the game. The us is lagging now. Could you describe this as a sputnik like moment . Remember, the soviet Union Launched Sputnik and then america entered the space race. Is this kind of like a global hash race were seeing marshall. Its really easy to start getting spooked when 22 percent of the dollars that you created in existence came out this year. You know, we got drone power over here printing like a madman, and then people start to realize that its not working anymore. And then you also realize that youve got countries that you dont like i. E. Irans been a sweet getting into mining. And once you have virgin big, it really hard to track. Its not really much you can do about it when you talk about censoring transactions and all these things that you might be able to do you. If you have virgin corn based transactions, you cant really do anything with him because you dont know really know who has the coins. So the reality here is comp troll or currency or whatever his title is. She has a lot of experience in big clients. I think net. Net this is a good as we have a guy on the inside, but it seems like hes still peddling this anti china narrative which has been going on for ages. Its just getting a little bit old in my opinion, so well see more of all it all is motivates people, politicians, you know, if you throw out an existential threat. Remember, last year 2 years ago is russia, russia, russia, now its china, china, china, or iran, iran, iran, right. So they need to motivate people to act. They need an enemy because theyre simple minded and stupid, but nevertheless, because in a smart and i will usher in a new era of leaders that are enabled by bitcoin. Let me ask you this question that i threw out there on twitter quite liberally. And since youre actually a professional in the field, you would have a better answer from play and correct me if what ive been saying is wrong. But flood theory that all these big guys comin in, blackrock to said oh, we love bitcoin stan druckenmiller. Paul tudor jones, michael saylor, you know, over their micro strategy, theyre buying more big coal and then miners are, you know, creating a sense they are as the protocol is admitting, prada, daily basis. So theres a huge supply gap. Is it possible were going to see a situation where the majors, the big guys are looking to buy 1000000000. 00 click would just go directly to you the miners and just say look, will buy directly from you will pay a premium. And its going to be hard for retail people to have any access to pick one at all because its just going to go right to the big guys. Are going to see a vacuum of price just gallon pyar it. Tell me if were missing anything of anything in that scenario. So thats about right. I can see that price action is going to continue on for pickling the same way as the feds balance sheet, and thats up and up enough. The as far as institutions going to play directly with minors, were already starting to see some movement in that field as far as like, you know, k. Y. C. Based pools. This was really common in 20131415. I can remember selling some big coin to some brokers at a Midsized Bank in the states as affords contracts where you would make a deal months. They want of the month and lock in a premium. So that gives you, you know, forseeable upside over your power price. So thats usually something that happens when the price dips low. As we start to see this bear market fade away in the bull really start to rage here. A lot of its really interesting to see the g. P. To see perrys fun having so many big point over the course of the last quarter. More than you know, was mind. And this will just continue on because the next having skin to come right on schedule and will be even less supply. So you know, this kind of stock to flow model, take it or leave it seems to be right on track. So i think you hit the nail on the head there. You know, the thing about big client is that it is for all intents and purposes on confiscate a ball. And americas got a Foreign Policy where we bomb countries and take their oil. We hoard a lot of gold for other countries and threaten to keep it if they dont stay in line with our objectives here in the United States. And for the