Why Money Has Value and How It Loses Buying Power

Hey, so you guys don't— if you didn't know, we're doing 3 to 4 PM Eastern Standard Time. I'm going to be teaching crypto from its core foundations, from, you know, what is money, everything. If you want to follow along in the course, go to coinpix.app. In CoinPix.app, it's going to be a full digital course where you can run mini apps as well as take tests to iron out your knowledge in crypto. Now the reason why we're doing this and why we're giving away so much value— market is like here. It's so close to here that essentially I want as many people to learn as possible so they can start accumulating the dip because we're at the bottom of the market. The bottom is in. And so I don't think I'm going to be doing this for a long time. It's going to be like a 10-year course. Probably won't do this again for 10 years. But we're recording everything, a full complete course. To be very clear with you, actually let me go through really quickly what it actually is. So if you go to the website and you go to the actual Learn tab, you'll see right here, literally the whole point is to stack your understanding. So today it depends on where we get done, but today and moving forward, probably I'm estimating either we'll get it done today or tomorrow. We're going to be going over making sense of money, so like understanding what money actually is. Then we're going to go over taking control of your money, navigating the financial system, understanding what moves the markets, understanding how the internet works, discovering how crypto changes the internet. And then we're going to stack that on top of the strategy. What a lot of people are doing is they're going out and trying to trade, but they don't know anything about crypto. So when the actual tides come, when they go through loss, financial loss, or like the market just doesn't go the direction they wanted to, their entire foundation collapses. So what we're doing is we're building that understanding, that knowledge foundation, so you get the core principle of why it's replacing the entire economy. It's literally replacing anything worth value. To be clear with you, it's not just money, it's NFTs, it's anything that's worth legitimate value is being replaced right now on the internet, if that makes sense. And it's going to change everything. We also have live guests here, some of my team that's getting trained on crypto, and essentially they will ask questions. We do have a chat box, and Victor's going to give me the chat so I can actually answer those questions as well.

I think the volume is messed up. Okay. The mic just messed up. I don't know why.

Okay, so Victor's going to be diagnosing the issues. What do you got going on?

Hello? The mic just went out.

Which one? Mine?

Yeah, it looks like it. I don't know why it just went out.

I think it's dead. All right, I don't know what you guys heard or what you didn't. Mic went out. Mic number 2, let's do it. Are we good? Locked in?

Let me see if I could hear something.

Testing, testing. All right, well, he's fixing the mics. We just had a live stream this morning. By the way, guys, we have a Kingdom Builder channel. And we live stream every day there as well. It's just going to be a live streaming frenzy. So excuse us while we fix our mics. You good or we locked in or what? Can I start? He's fixing it now. Welcome to the stream. Welcome to the stream. Welcome to the stream. Is the issue?

I've never seen that happen before.

Can you hear me right now, like in real time? All right, we should be good. Victor, you good? It's okay. But yeah, for, um, while Victor gets this set up, go to coinpix.app. Go to coinpix.app and go ahead and sign in. Go to the Learn tab. You'll see a Learn tab. We are hiring as well. I don't know if you hear me, but I'm going to say it anyways. We are hiring in Orlando, Florida. Go to the hiring tab if you want to get access to job opportunities. We have a lot of jobs. We have 19 openings right now as we speak. We're trying to expand the team as aggressively as possible. If you're in Orlando, Florida, go apply. Take it serious. I'll just throw it at you. We have AI analyzing your resume to see if you're actually taking it serious or not. So I hope you take it serious. If you don't take it serious, then you probably will never take this job serious. So take your application process very serious and your hiring process serious. We're expanding a lot. This is why you see a lot of changes. This website was launched in an extremely fast manner. The course we're doing, same thing. We're moving as aggressive as we possibly can for the bull market. It's going to change so rapidly, we got to move now. What we're building now is going to be valuable, like in 2, 3 years, it's going to be like 20 times more valuable. And it's the same thing with your knowledge and learning experience. The more you guys learn now, when the bull market comes and it's crazy and chaos, you're going to be locked in and you're not going to have to learn the basic stuff that everybody's learning like during the bull market. So you'll be just focused on one thing, which is the CoinPick strategy. You'll just be putting the strategy to work. All the foundation would be set. You don't have to prepare for something that you're already prepared for, if that makes sense. Are we good, Victor? We locked in or what? Locked in. All right, so we're going to get into the course. Sorry for the technical difficulties. We're going to get better and better. We're live streaming a lot, so it's going to get really cool. So if we scroll to the bottom, we're just going to jump into the first section of the course. You should see Make Sense of Money Unlocked. We're going to go through why money exists, and we're going to read it together, kind of go through this process, and I'm going to give you guys my commentary. So money helps people connect in the world you do with the things other people can produce, and I'll explain what I mean by that. So money helps connect the work you do with the things other people can produce. Money helps connect basically the value of the world, if that makes sense. And I'll explain what I mean by that. So we're going to go through an analogy of the bakery. So imagine, I want everybody real quick, imagine a small community. And the reason why a small community is important is because this is actually where money, like, I guess you could say, morphed into real cash. Like it became a meaningful thing because back in the day, like thousands of years ago, they would barter. So there's something called barter where they wouldn't— they didn't have money. They would trade one good for another good, and they would barter. So imagine a small community with a fisher, a baker, a miller, a doctor, and you're the fisher. After a morning on the water, you want to exchange fish for bread. So imagine having fish, right? The problem with fish as a form of money is that it decays, it goes bad, right? So you kind of have to like get rid of your fish. So like, let's say you got 20 pieces of fish or whatever the case is, you know, you could probably eat 4 for your family or 5 for your family. But what about all that extra fish? What are all those hours you put in? What's going to happen to that right now? Obviously, there's ways to preserve the fish, but that only goes so far. What you would rather do is sell the fish so that you can use that for something else, right? The baker likes fish, but she already has enough. What she needs is flour. Your fish is useful and her bread is useful, yet you cannot agree on this trade because you are offering something she does not actually want. This is the inefficiency of barter, right? You go to Facebook Marketplace, it's kind of a similar concept if there was no money involved. Barter is the exchange of basically physical objects, but the problem with it is that when you try to exchange certain things, you just can't. Nobody cares. Like, they don't want that, right? And so that's where this complexity comes into play. You could find somebody with flour who wants your fish. So there's— you can go and find somebody that wants your fish or whatever the case is, or find somebody that wants your flour, but that's obviously very difficult. Then bring the flour back, but that search takes time and the fish will not stay fresh forever. This is one difficulty with barter. Directly exchanging goods or services requires a suitable match between What each person has and what the other wants. Now imagine that people in the community accept the same money, right? This is the value of money. You sell the fish to someone who wants it, then use the money to buy the bread. The baker accepts your payment because she accepts the miller to accept the money for flour. Money lets you exchange— money lets those exchanges happen with different people at different times. You no longer need every customer to supply exactly what you need next. This imagined market, right, explains a problem money can solve. It is not a claim that every society followed one historical path from barter to money, but it's basically explaining the efficiency of money. Now, I know a lot of you know this, but watch how I build the understanding, because you have to first comprehend that there was systems of barter before there was money. It was all barter, right? It was just trading back and forth. So we do have a little mini app that you guys could play with, right? So you are trying to exchange the fish with the actual baker. There is no trade, right? The trade gets stuck. You want the bread, the baker already has the fish. Remember that, right? And I'm sure a lot of you have barter. I think I have it right here. Try playing with the money. So right here, as you can see, the dollar will be accepted on all— it's a— they call this a An exchange, a vehicle of exchange, right? And so you can kind of just play with that to deepen your understanding. And again, I take it—I try to go really simple and basic because these these simple concepts graduate and it gets like really complex. So really understand what I'm saying here. Okay. Now this is what I mean by this. Okay. So because now you can actually exchange with money. Now if a society going from barter. To actually having cash, there's something called specialization. This is where it gets crazy, okay? So more time to become good at something. Consider the doctor. If every patient had to pay with exactly the food, clothes, or repairs the doctor needed that day, arranged payment could become another full-time job just to arrange the payments. With accepted money, The doctor can treat a patient, then buy food from the farmer and bread from the baker. The farmer can spend more time farming. The baker can spend more time baking. This is specialization. People focus on particular skills and exchange with others for the things that they need. Money helps coordinate that exchange. It does not grow the wheat, bake the bread, or create the doctor's knowledge, They'll still require time, resources, and work. Its usefulness is making it easier for people who produce different things to cooperate. What I mean by that, to kind of elaborate a little bit, basically how it works is imagine, right? Imagine if you're a doctor practicing medicine, right? For 4 hours, 5 hours a day, you're practicing medicine, you're trying to heal people and do all these crazy things, but then you have to worry about what you're going to eat for the day. You have to literally be a farmer. This is, this is what people were back in the day. They would be farmers. Pretty much everything they needed, like clothing, everything, they would produce it themselves. And they would be generally good at a lot of things, but they'd never had the time to just intimately work on one specific niche really aggressively. So this is— when money happened, what it did is it actually took the human race and it evolved them through specialization, because now people can dedicate their whole life to one thing and become extreme masters at it. Before, this was not possible. In the barter economy, this was not possible. Everybody was just like these little— imagine, like, I don't have a specific tribe, but imagine these tribes, right? They're all like generally good at like, you know, making clothing, right? The wife is probably at the house making clothing, cooking, you know, gathering, you know, berries and nuts and different things like that. And then the husband is just getting fish. That was literally how it ran. Nobody was specifically good. And maybe you had a grandmother that was a part of the family that didn't have to fish, and maybe she was specialized in medicine. But the point is, it was extremely inefficient. Everybody had to fend for themselves. So in the economy of specialization, it allows the depth of understanding on a specific field. This is very important. Money is not inherently evil, right? It's the love of money according to the Bible. It's not that money— it just makes things more efficient. It's a medium of exchange. You could exchange your specialized talent because money encapsulates your time. That's all money is. If you're making $15 an hour, you are, by accepting the job, by you accepting the job and working there, you are encapsulating your hours encapsulating $15, right? And then the $15 that you have, to increase it, like to make it $100 an hour, is basically the specialization of your skill set, if that makes sense. If you have a very rare and very needed skill set, then you specializing in that very rare and needed skill set will increase your encapsulated dollar per hour. That's how the economy works, right? So specialization is really important. Now, the reason why I'm explaining this is because people think that cryptocurrencies are just like freaking digital coins on the internet. No, they have successfully created this encapsulation of value that's digitally transmitted. And you'll see what I'm saying about this, you see how it comes together, but you first have to understand that concept. Because if we do evolve into a new dimension of encapsulation of value, then that means that that specialization gets depth, it gets more deep. So if we have an increase of efficiency on the money itself, then the depth of specialization and skill will increase exponentially. The leap is probably 100 times bigger than when the internet first came out. So when the internet first came out to where we're at today, there was a quantum leap in human knowledge, wisdom, and understanding. There's a massive leap. Now, if we can encapsulate the money in a significantly more efficient way, It's that same leap but 100 times bigger because the internet has only been text, image, and video. It's only been pure communication, no encapture of value. And so this is where— I'm going to explain what I mean throughout this course. You're going to understand the depth of what I'm saying. But when I tell people crypto is not a niche, it's a dimension, I mean that. It is fully a whole other world of every concept on the face of the planet. It is like literally humans evolving. Like, that's the best way to explain it. It is literally a new way to change value. Because right here, as you can— we explain, when people were in barter, they were on a specific level of knowledge and a specific level of communication of value. When we switched to money, that jump into specialization changed the Does that make sense? So basically that jump has happened again, but on a massive scale that we've never seen before in human history. So this is where this understanding needs to— it needs to be rooted in the economics of society, right? So money helps coordinate that exchange. It does not grow the wheat, bake the bread, or create the doctor's knowledge. Those still require time, resources, and work. Its usefulness is making it easier for people who produce different things to cooperate. Now watch this. There's jobs that money have. Like, money just doesn't do everything. It can't freaking— it can't do everything, but there is specific jobs. Number 1, when you pay, money acts as a medium of exchange. That's what I'm explaining. The baker receives something she can use in a later transaction. When you compare— listen, this created a whole market now because you can compare prices. If I'm back in the day in the barter economy, we just started adopting money, and I create a specific type of knife And then there's another person that creates a specific type of knife. You can now compare the price of both knives. It's created a market now. Money acts as a unit of account. Remember that, write it down. Medium of exchange, unit of account. A loaf priced at 10 units and a bag of flour priced at 20. A share, a common measuring unit. You can compare their prices without first working out how many— fish each would require. It's just way better. These are specific features. And then here's another one. When you save money, money acts as a store of value. You can keep some of today's payment for a future purchase. That function is imperfect. Keeping the same number of units does not guarantee that those units will buy the same amount later. But these 3 functions also appear in the Bank of England's explanation of money. Basically, the point here is that they have these 3 features, right, which is pay, compare, and save. Now, these are not just regular features, they're like the foundations of our economy, right? We talked about, we kind of really went into paying, right? You could pay for things, right? You can compare, it created a market for goods and services. And then you could save. This one's crazy, remember this one? But before, they couldn't save. What they would have to do is get the fish, and put it in salt. They didn't have ice in refrigerators. They would have to put it in salt, and if they do it right, maybe it'll last a couple years. You cannot save value. So that means that all of your work that you did— let's say you put in 8 hours a day, but 4 hours produces enough value for your day to survive, right? Let's say you're a fisher. You're producing, you know, you work for 8 hours, 4 hours a day you meet the demands of your family, right? But the other 4 hours you have all this excess fish, right? You can't save that. That was not possible. So all of your current labor just goes out the window unless there's money. And there's no— you can't plan for the future. You can't store up value for the future, right? That's the barter economy. It's just super, super important that people understand the mechanics of money. They're just— it's just— it sounds simple on the surface, but it's like a foundational shift in literally everything that we can currently conceive. Right? Now watch this. A payment can change a record. Now let's return back to the bakery, but pay through your bank account. Now this is important because it's going to start building into the understanding of a crypto ledger. Return to the bakery, but pay through your bank account. For this simplified example, you and the baker use the same bank. You have 40 units, she has 10, and you approve a payment of 10 with no fee or borrowing. The bank changes your balance to $30 and hers to $20. So there is— when a bank, like when you pay for something, it's not real money moving. It's a communication from one bank to another. And it's a unit. It's basically imagine a ledger. It just changes. They just say, hey, if you're going to pay her $10, we're going to switch your balance to $20 and her balance to $30. It's literally just a change of records. Right. The bank changes your balance to 30 and hers to 20. Together, the 2 balances stay total 50. A ledger— listen, this is like building on everything— a ledger is a record of balances and transactions. This payment changes that record without physical coins passing between you. The bank also needs to check permission. Remember this word, permission. Permission. Permission. Crypto technology is permissionless. Permission. Permissionless. Permission means you have to ask a physical human. Permissionless means you don't have to ask a physical human and a consistent result returns. Does that make sense? All right. A bank also needs to check permission. A stranger should not be able to spend From your account simply because— I was going to take this word out of the course. I don't even know what it means. That's fine. Having enough money and being authorized to move are separate requirements. So let me say it again. Having enough money and being authorized to move the money are separate requirements. So what that means is if you have one bank account and you're negative $50 and you try to go pay for something, That, in that case, you're tapping into not having enough money, right? But in another same case, if you have $100 and somebody else from the outside tries to move $50, that, in that case, you're not authorized to move. That's a separate requirement. Now those 2 features, the reason I say that, those 2 features in blockchain have been revolutionized. That's why we're taking this slow and breaking it down simple. And again, you guys can use the apps for yourself. My goal here is to not— I want to get through a lot of this core course, especially the beginnings. And so I want you guys to go through it in your own time. And this is the idea to keep— we have a test at the bottom of this. I don't know, is it finished yet? Let's see. Yeah, we have a test at the bottom of this. Do your own time, watch the recording if you have to, take the transcript, put it into ChatGPT if you have to, to really understand what I'm saying. But let's read through this last idea. We're gonna move on to the next part of the section. A balance records an amount available under a system rule. So a balance Bank balance records an amount available under the system rules. So there's system rules, and if you're in a bank, they have their own system's rules. It does not measure your effort or worth. A birthday gift is still money even though you didn't earn it through work. Listen, as we compare different forms of money, keep asking what they let people do and which rules make that possible. The rules are the things that changed in crypto. It's the rules that changed. It fundamentally changed the way that the monetary system works, and you'll see us elaborate deeper and deeper on that. So we're going to go to the next part of the section. Any questions from you guys? You guys good? If you have questions, it was pretty straightforward. All right, great. Where are we at? What time is it? 3:26. 3:26, great. So we're probably going to get to like 2 more sections max. And if you guys have questions in the chat box, I see questions there. All right, 100% agree. I need a moonshot ASAP. You need to learn money, sir. You don't need a moonshot. You need to learn money, sir. All right, what makes sense of money? What makes good money? Let's get into this section here. All right, what makes good money? Now that we understand the importance of money and the mechanics behind money, we need to understand what makes it good. The baker needs flour tomorrow and wants a new oven next year. Comparing different forms of money means examining several properties together, than deciding which ones matter for the payment or saving goal in front of you. So let's prepare— let's compare a report card. What I mean by that is we're gonna compare the stats of money, right? Picture 2 fictional basketball players with comparable playing time in the same league and same season. Noah averages 26 points, 5 assists, and 4 turnovers per game. Jordan averages 16 points, 10 assists, and and 2 turnovers per game. An assist helps a teammate score, a turnover gives up possession. A coach who needs scoring might prefer Noah. A coach looking for passing and fewer lost possessions might prefer Jordan. The highest number in one column cannot settle every question. Listen, money deserves the same kind of comparison. Being easy to move does not tell you whether it lasts. These are properties of money. I'll explain more. Having a small supply does not tell you whether anyone will accept it. These are different properties or stats of money. So if we look at the actual example, you can see again, if your priority is making points, you're going to go for Noah. If your priority is assists, you want a team player, you're going to go for Jordan. If your priority is to not have turnovers, you're going to go for Jordan. Jordan. These are different properties, but just because he makes the most points doesn't mean that he's always the selection because you could have priorities or you could prioritize different things. Now, here's the properties of money. This is where it gets crazy. Here's the actual properties of money. Number 1, durability. Ask whether it survives storage and use. Fish spoil. They're horrible in durability. Metal lasts much longer. Digital balances need records that remain available and reliable. So durability is a property of money. There's a lot of, for example, the United States dollar doesn't have, it has durability, but like, for example, if the dollar rips, it's losing durability. So if you have $100 in your pocket and it gets wet to the point where it deteriorates, that's a lower durability, right? But like something like gold, It's very difficult unless you lose it. It's very difficult to destroy gold. It has a higher durability, if that makes sense. Second one, portability. Ask how practical it is to move or transfer. Weight matters for physical objects while cost, connectivity, and access can matter for electronic transfers. Now portability, for example, with gold, it's very important you guys understand these examples. With gold specifically, it's not portable. If you had like $100,000 worth of gold, it would be like, You can't put that in your pocket. It's very heavy. It's annoying, right? But portability for a dollar, it's very portable. Like you can move with a dollar anywhere, especially with bank dollars, right? With bank dollars, you can buy something on the other side of the world. It's extremely portable, if that makes sense. So portability is the ease to be able to actually transfer. The visibility asks whether it can pay both small and large amounts. A ticket redeemable only for five drinks is awkward when you want one drink and cannot receive the change. So, for example, it's like the concept of using gold to go pay for a coffee. Coffee is like five bucks. What are you going to do? Like take it? You're going to take a gold bar and like chip off a little small piece to pay for that? No, that's it's not divisible. Divisibility. So, so divisibility in the context of of the United States dollar, the lowest divisible. Form of a dollar is 1 cent. So the divisibility goes all the way down to 1 cent, right? Bitcoin's significantly more divisible, and we'll talk about that, but it goes down to a very small fraction. Nobody buys anything for 1 cent, so who cares? But the divisibility of a dollar is way better than gold, right? So divisibility, again, is a property. It's like a basketball player, like he's good at this, they're good at that. It's very important to understand. Can you recognize and check it? Uniformity and fungibility asks whether the equivalent units can be substituted for another. One genuine dollar ordinary pays the same dollar of a bill as another. Two gemstones may need separate appraisals before anyone treats them as equal. So what it means, fungibility basically just means who accepts it and where do they accept it, right? So for example, Right now we're actually just talking to somebody. I don't know his name, but Carlos has got off the phone with somebody in Saudi Arabia, and in the background of the call there's bombs going off and he's freaking out. He's like, bro, what the heck? This guy was on the call with me and there was bombs going off and he was trying to get the information and he was trying to leave. It was crazy. And he was basically telling him that all of his life is in crypto. And the reason why all of his life is in crypto is because the dollar that they have in that country is inflated to oblivion, right? And nobody— and in that country, they won't accept US dollars. So in that country, there's low fungibility for the US dollar because they won't accept— there's some countries that ban US dollars, so the US dollars won't work in that country. Fungibility is like, is how many people are going to accept it, and uniformity. Now, right now, the US dollar is the most uniform, number one currency on face of the planet. There is nothing more accepted than US dollars in the world, right? And so as Bitcoin, for example, you can accept payment for Bitcoin, USDC, etc., etc., and it gets rolled out more for crypto, the uniformity or the fungibility is increasing. This is why when we see a whole bunch of adoption news and different things like that, this is like increasing the fungibility of crypto. It's increasing because it's all over the world, right? So there's a lot of technology stacks, right? These websites that accept dollars and credit cards, they can't accept USDC or crypto stablecoin so that, like, as technology increases, there will be more fungibility. Does that make sense? It's very important because right now the US dollar is the most fungible. And we do that with USDC. But the problem is that USDC doesn't— the technology stack hasn't upgraded as well. And we'll go more into that. Verifiability asks whether you can establish what you are receiving. A familiar appearance helps recognition, but a convincing counterfeit can look familiar too. Checking a payment means checking the genuine cash or receiving account rather than trusting a picture that claims money was sent. So this is the concept of faking US dollars, right? So verifiability, they have certain mechanisms a certain type of dollar or a certain type of paper they use for the US dollar, a certain way to verify if it's real or not. And there are people that go far and beyond to actually fake it, right? And so you'll see that crypto has dominated verifiability, by the way. It is like there's nothing that compares to crypto verifiability. But this is that concept. So again, just to kind of— because we're going through a lot of concepts, this is like the properties of money. So different aspects of money that make it better or worse. That's basically what's going on here, okay? Now, we keep going. It gets really cool. What controls the supply? Now, if you have a whole bunch of cryptocurrency or a whole bunch of US dollars, the scarcity element is again a property, concerns limited availability in relation to what people want. So we have demand and we have availability or the current supply. So demand is how many people want the thing. And then the supply is how many do you have of the thing, right? Sometimes can be rare without being wanted. So this is why I always told— this is actually one of our core strategies of making money in crypto is finding coins that are very limited in liquidity, but they have a lot of demand. This is how you make money. I'm telling y'all, this is how you make money. You understand, you master these individual principles, it would show you why money flows in certain areas. This is why they call it liquidity. They call it liquidity because it's not necessarily money. It moves like water. It flows to certain type of basically properties and dimensions. It moves to certain areas for specific reasons. So you can really comprehend it. You have to think of money like water. Trust me, it's like a very, very good principle. Something can be rare without being wanted. Creating 12 tokens does not create 12 desirable tokens. So scarcity, the concept of scarcity, if there's something scarce, typically money, if you have high demand and high scarcity, value tends to kind of move to that area like a magnet. Does that make sense? So value moves to scarcity and demand. Remember that. Supply rules concern how much more units can appear. This is the— so if you have a supply of, let's say, 10,000, it's at 10,000 supply. The supply rules can be like the issuance, like you could have 3% inflation a year where that supply increases by 3% a year. There's specific rules. Now, right now, the US dollar has something called monetary policy with the Federal Reserve that determines this. They literally tell you like, hey, we're going to do this. And so this is where all this is very important, right? You need to understand the mechanics of money. It's crazy because we're talking about this stuff and it's like people don't know this. And the crazy part about it is that you spent 8 hours of your life trying to get it and you have no idea what the heck is going on. Because what they can do is they can, if they want to, increase the supply rules of inflation. And if you're making $20 an hour and it increases by 3% in one year, you have just lost 3% of your $20 an hour. So this is why we say money is a vehicle of enslavement, because what they could do is depreciate your hour without you knowing. Without you knowing, they can literally take a piece of your hour. They can just take it and then give it to themselves and put it in their own pocket through monetary policy. Does that make sense? So this is an extremely important concept. You can, again, if you master this, you can offset that take. It's called inflation is a hidden tax. You can offset that by just making more money. You increase your skill set, you make more money, you offset that. They don't take your time, right? So it's like they're literally stealing your time and money. Right. So yes, this is like monetary policy. Who can create them? Under what conditions? And how much can production respond to demand if it rises? A small supply today and a supply that is difficult to expand are different things. So we're not going to go into specifically— we can— you guys can go over this yourself, but there is a methodology to try to predict supply versus demand. It's called stock-to-flow ratio. So I don't want to go into that right now, but the stock-to-flow ratio essentially is calculated by dividing the existing stock by a year's new production. And you can see how it could be a useful ratio for predicting the future price of something, because again, let me say it again, stock-to-flow is calculated by dividing existing stock. So this can be anything, it could be crypto, anything. So there's an existing stock divided by a year's new production. Does that make sense? So a fic— for a fictional material with 1,000 available units and an annual production of 50, the ratio is 20. Annual output equals 5% of the starting stock. The calculation describes supply. It does not include demand, acceptance, or future price. We will use it as one part of the comparison. Okay, so here's a comparison right here. Excuse me, we're gonna do it here. So we have a mini app here. This is kind of just calculating to produce annual production equals 5% of the starting stock. The supply ratio does not predict demand or price. And people have used the stock-to-flow ratio to predict the future price of Bitcoin over years. But yeah, you guys can get into it. I want to just get back into teaching. All right. So if we continue, will people accept it and what will it buy? So this is acceptance, asks whether a person you need to pay will take it. The baker may own valuable gold, but if the miller wants dollars, she needs to arrange an exchange before buying the flour. Now that one's obvious, straightforward. I want to go over this one. So purchasing power stability, right? Ask how reliable an amount buys similar goods and services over time. A durable object can still have a changing price, A predictable supply schedule also cannot make demand predictable. So what I mean, what it means by that is your purchasing power. I think like I don't know the exact years, but over the past 40 years has decreased by like 90%. So purchasing power is, and we've we actually done this, and I got to redo it. We did like a live Q&A on this before, but we figured we we sat there and I calculated exactly how much you need for retirement. But I came to find out that in 20 years. Your retirement will be depreciated by inflation. So if you want a million dollars worth of retirement of today's money, you need 3.5 million, I think was the math, in the future to make up for all of the all of the inflation. So purchasing power is how much power you have in relation to the price of the market because you could you lose. You lose value of something by 2 mechanisms, right? So let's say you have $100. You lose value through inflation. They print more money. Your value, your $100 is inherently less now. And then you also lose value of money of what you're buying increases in price. So if what you're buying increases in price over a long period of time, then that's your $100 of purchasing power is substantially less than what it was 20 years previous. So if you're— this is where a lot of retirement planners are making massive mistakes from what I've seen, is basically you need significantly more money to do the will of God, which is plan an inheritance for your children's children. So the Bible says to plan an inheritance for your children's children in different ways, but also financially, and if you do like for example if you retire at the age of 65, let's say you die at 85, you got 20 years. Right, $1 million, you live at what, $50,000 a year? So if you retire with $1 million, yeah, $50,000 a year. But the thing is, who the heck lives like at that age living off of $50,000 a year? You can't go anywhere, and that's only $1 million. The problem with that is that $1 million in 25 years when you retire is significantly less. So at today's calculation, if your retirement is adding up that you're going to make $1 million at the age of 65, You're like living off of like $30K a year, $25K a year, $20K a year. It's scary, right? So the way that you beat this is by making more money. We were talking about it in one of our recent meetings and we're like, bro, the best way to financially budget is just to make more money straight up. And basically to beat all of these, unfortunately the monetary system is rigged against you. The only way to beat it is to make more money. That's literally the only thing you can do at this point. Invest more and make more. All right. Purchasing Power and Stability asks— okay, we get that one. Compare one property at a time. The existing course compares dollars, physical gold, dry wheat, and company shares. Each can be valuable, but they behave differently. One needs suitable storage and can spoil. Gold requires safekeeping and checks of weight and purity. Shares are ownership interests in a business, and their value depends on what the buyers will pay for those interests. So here's kind of like a breakdown of a little comparison here. So for example, let's go through one of them. So dollars, the durability test, can it last? Cash wears. Bank records need reliable systems, right? The metal resists decay, right? So physical gold. So we're looking at dollars, now we're looking at physical gold. The metal resists decay, but it still needs safekeeping. You can't just have gold sitting around in your car, somebody rob you, right? Dry wheat. Wheat can spoil, dry storage and pest control matter. Now you got to spend money for pest control and storage. And then company shares. Records can endure, but the company can fall. And also there's perception, like people— the company could be doing well, but if the people literally are like, I don't want this stock, company because something the CEO made said, the shares can drop dramatically. Let's go to the next one. Portability. Can ownership move easily? Cash travels in a wallet. Bank payments use a network, right? So this is pretty portable. It's like really portable. Physical gold, compact for value, but physical delivery needs protection, right? It's not that good at portability. Bulk Bulky and heavy, moving a large payment takes work. For dry wheat, imagine like getting $1 million of dry wheat and trying to move it, right? Company shares ownership can transfer electronically through financial systems. You guys get the point. They're like stats. And the reason why we're trying to go through these stats is because you'll realize what crypto did. So what crypto did is they basically are like, we're going to crack out every one of these stats and max it out. That's basically what they did. They're like, we're just gonna make it all flawless. Like every one of these stats, we're gonna 10 out of 10 it. It's like making a fake money the best of the world. And that's what crypto did. We're not gonna go into this too much, it's too much here. So let's go over the last one. You guys can go over that for yourself and really go into it and dial it in. So when these concepts come up, for example, when we dissect a coin, we look into a coin and we look at the tokenomics of a coin or whatever the case is, you'll basically be able to understand why it's valuable. You'll be like, oh, this is scarce, this is this, this is that, and you'll go into detail. Now, the idea to keep: these questions prepare you to evaluate Bitcoin and other digital assets. A system might allow tiny payments and restrict issuance while still being inconvenient for practical purchase. Ask how its strength and limits affect the task you actually need to perform. You get the point. So what it's trying to tell you is to meditate on the different properties and how it's relative to your current situation. Does that make sense? All right, you guys can go through the quiz yourself again on your own time. We're actually going to just speed through the next one. I want to get through this because it's getting really— it's going to get really interesting. So again, if you guys are new here, this course is free. Go to coinpicks.app, C-O-I-N-P-I-C-K-S dot A-P-P. Your test answers can be saved, and the whole entire course is free. All the mini apps, everything, it's all free. And yeah, you can access it whenever you want and actually learn crypto. And again, we're going through the basics, the beginning. You have to build your understanding, so it's going to be— I don't want to say boring, but it's just like, you know, it's new stuff. It's not crypto stuff just yet. All right, when money becomes easy to make, how supply, ownership, And acceptance actually shape money. Money needs people willing to accept it. It also needs a way of deciding how much more can enter circulation. When producing money becomes easier, the people holding it have a question: what will their savings buy? This is modern economics. They just basically made it super easy to produce money. We'll talk about that, right? Now, this is one of my favorite stories, super cool, that really explains Bitcoin the best way I've seen. But I am not going to— is what is Micronesia? On Yap in Micronesia, there was these carved stone discs called rai stones. They're rai stones and served as valuable and important exchanges. So imagine literally like a little tribe and they have these big circular stones and that was their form of money. Many came from Peleliu, hundreds of miles away. People could recognize a transfer of ownership without moving the large stone itself. Researchers describe the shared oral knowledge that helped preserve those ownership histories. Picture a simplified example. A family owns a stone beside a village path. In an agreed exchange, the community recognizes Family B as the new owner. The stone stays where it is, What changed was the accepted claim to it. Hopefully that makes sense. Very simple, straightforward. So we have a Rai stone, and I'll just give you an example. So imagine a massive stone, nobody can move it, it's just there, right? And Person A owns that stone. Well, let's say Person B is a doctor and Person A just broke their leg. And Person A is like, yo, I need my leg fixed. Come, can you please like heal my leg? So he goes to person B and he's like, I'm going to accept payment, but there was no moving of the stone. What they did is they both just agreed, okay, great, here, the stone is now yours. And so they paid, but the stone stayed the same. Does that make sense? So the payment transfer happened on what we would call a ledger. In their case, they likely had something, they wrote it down. So there'd be a piece of paper and it'd be like, yo, John owns this stone, Sally owns this stone, This person owns this stone, and because they just went and fixed the leg, we're going to transfer ownership from this person to this person, and they would record it. That's a ledger. That's a ledger. But it's very important because in our current economy, we think differently. Right now, our form of transfer, it is bank, but if I give him cash, the way that we perceive it is if I give him cash, it actually moves. The cash moves, right? But in this case, nothing moved. It was just the perception or the agreements of it. Does that make sense? So this was like one of the first monies, if that makes sense. 2 stones, 2 histories. A rai's significance involved more than its dimensions. The work journey involved bringing it to Yap, its previous owners, and its role in community life could all matter. 2 similar stones could have different histories and 2 different values. We're not gonna go into that. You guys can go through yourself. What I wanna do is just explain a concept. This is where it got weird. So imagine that situation, they're flourishing in their own little tribes and stuff like that. And in the 19th century, traders including David O'Keefe helped Japanese people quarry and transport stones using ships and newer tools. So basically these guys came and they're like, hey, we found a whole bunch of stones over here. I'm about to just start Pulling them out, and we'll bring them to you. Right? The change affected supply and valuation without turning every stone into a worthless worthless object. So if now that there's a whole bunch of new rhinestones, the value would drop. Right? That gives us two questions to carry forward: How easily can more of monetary object be produced, and will people treat the new object as equivalent to the ones already circulating? So imagine a situation. where they just have all these crazy tools and they're just bringing all these rhinestones. They're just bringing all these rhinestones. At the beginning, the value of the rhinestones would drop, right? The significance would drop, but there could be a situation to where they just straight up like, you know what? That technology is too cracked. There's too many rhinestones. We're just gonna completely abandon this. Does that make sense? Like, this is bad. 'Cause you could do that. Like, it's a form of enslavement. That's why, like, for example, when I see things like— I'm not going to get into politics, but when I see America and they're all— and they're always coming out in the news where they're like just taking billions of dollars and injecting into an economy that doesn't even benefit us, people think that's like a, like a negative thing for America. They're like, oh my gosh, there was $20 billion to Israel that could have been used for this. And yes, that could have been there, but you don't know the mechanics of money. They're using that to literally— because they own the consensus mechanism, they own the mechanism of printing and depreciating. They could depreciate it. So they're injecting it, the people are becoming more reliant on the money, they're using the money for their economy, buying things, investing in things, and they're going to need more. And the person that they're getting it from, it's like a drug dealer with a fiend.

So crazy.

Yeah, it's like a drug dealer with a fiend. So like really, like if you want— if you're— I'm not going to get into politics, but if you're America and your journey is like— if you— if your goal is world domination, what you— you don't want to fight with so Swords and freaking missiles. You want to get everybody as much money as you can and then control the value mechanism of money. Money increases value today, money decreases in value today. They can just—they have that lever. The Federal Reserve owns that lever, so that them injecting it in there—it's like it's like the smartest move on the face of the planet for world domination. That's why they're dominating. They're not dom—America's not dominating because they're smarter, have better technology. They're dominating simply because. USD is the world reserve currency. It's the world reserve currency. Everybody adopts USD. That is the only reason they're dominating. And then they control the mechanism in which it's increasing and decreasing in value. So it's the same concept here. If this guy came, he just goes in and he's like, hey guys, give me— let's say they have a valuable resource of cowhides or something. He could just go and query the rhinestones, bring it to them, like, give me all your cowhides. Just give it. You take this money that's valueless to us, Just dominate their economics. Does that make sense? So this is the concept of how hard the money is, right? In the monetary framework used in The Bitcoin Standard, hard money means money whose supply is relatively difficult to expand. Easy money, in a sense, has a supply that can expand more readily. These descriptions concern production rather than whether the material feels hard Or a payment is convenient. So hard money basically means that the supply is very difficult to expand. Easy money is that they can expand it as well, at will. So right now the Federal Reserve can just expand it as well. It's not that easy, but yeah, pretty much. There's a group of guys, like 12 to 14 guys, and they sit there and make a decision on if they ever want to expand the monetary supply or not. The concern becomes clearer in the fictional token economy. There are a 1,000 interchangeable tokens, you own 100, a workshop then creates another 1,000 and gives them to other people, you still hold the 100, but your share of all the tokens has fallen from 10% to 5%. And this will be relative in crypto, because when you look at the tokenomics and things like that, you'll start to realize that this is like a super— it's like a real thing. Like, they're just dilution, they just finesse the supply. If they finesse the supply, it doesn't matter how many tokens you have. It's the value proportion to the supply. That calculation does not prove that every price doubles. Many people save the new tokens, spend them differently, and produce more goods, or change their willingness to accept the tokens. The supply change is real. Its effect on purchasing power depends on what happens next. So basically, it's a little mini app. You guys can go into it. More tokens, same holding. So this person here, This is where it gets real. You gotta really lock in. So you have 1,000 total. If they increase the supply by 100, you have 10% of the all tokens. It just dropped to 9.09%. This is like purchasing power. If they double the supply to 2,000, your share just dropped to 5%. You hold 100 of the 2,000 tokens. 1,000 additional tokens went to other people. That means that your share of the entire supply just dropped. Super important. All right, so making more bread can give a community more food. Making more monetary units does not by itself create more bread, homes, or medical care. That distinction explains why monetary production matters to someone saving for the future. That is basically the, the concept of saving for the future. If you're saving for the future, You got $100,000 in your bank account and the Federal Reserve is just increasing inflation by 3%. What is it saving? That's not saving. Saving would be breaking even. So by whatever the inflation is, if your savings is breaking even, that means that your purchasing power is being preserved. That's saving. Saving is not just tucking away money under your mattress. That is not saving. Saving is basically breaking even in proportion to the entire value of the monetary supply. And so that's very important. This is why the Bible doesn't say anything about saving. There's not one scripture that talks about saving in the Bible because I don't think the concept is like, I think saving might not be like, I don't know. I don't save too much. I save in like short-term things, but what I do is I have liquid investments. So I'll invest and then if the money is needed, I use that. What is savings? Like what's the point of saving? The point of savings is to have money for emergency situations. That's the only point of savings, right? It's the only point of savings. So I put my money in vehicles that appreciate by larger percentages than inflation. And then if I need the money for savings, I'll take a loan or I'll cash out a little bit or whatever the case is. But the concept of just tucking away cash in your bank account, I would say that I deter everyone from that as much as I possibly can. Does that make sense? So we went through 3. And you have a test here, guys. That's pretty much it. What time is it? Quick thing before we go. It's kind of crazy, but if you're here on the live stream, we did launch a free, 100% free autonomous trader. When I mean nothing's held back, we had a super smart brain API connection to your autonomous layer. Not even the smart brain is held back. It's a free API. So it's 100% free API, 100% free execution layer. It's on the website. You guys can go get access to it. And also if you have issues, because we've noticed there's a lot of people having issues setting it up, there's a lot of people having issues keeping it running, and there's also a lot of people having issues training it because there's an element of training the bot, like making it better and better, connecting to different exchanges. Obviously how you train it, it's like I always give this concept of how the autonomous bot works. And by the way, it's really free, like click the button. It's like really free on the website. Like literally kick the button, go and it will download it for free. Like on your desktop, you put it into Cloud Code or Codex. And there's even a video walkthrough to show you how to set up the API connections. But what was I saying? Oh yeah, what it usually is, it's like an assistant, right? So imagine you have a trading, an actual trading assistant for you that does the research, does the buys and sells and literally everything, right? So the way that you train your assistant will depend on the profitability. They will know only so much. How you train them is the sauce, right? And so we give you a lot of that through the API and through the execution layer, but obviously as we get better through this process, it's going to be really, really cool. And that's actually what the school communities are for. So we have 3 levels of helping you train the autonomous layer. The first is $97 a month, the second is $5,000 a year, and the third is $25,000. As you go up, you essentially get more help into training your assistant. That's basically what's happening here, right? So at the $25,000 level, it's white glove service. We do everything. We help install it on your computer, work out the bugs. It's an intimate experience between— it's like coaching. And you get my personal number and things like that. We'll go into more details in the future. But the point is, we really do give it out for free, the entire thing. And if you're smart enough, you train it yourself and have fun. And when you make money, shout me out, okay? So on the website, Free autonomous trader. Click the link wherever it is. Tomorrow we're going to be going over more sections. We're going to try to get to, depending on the depth of the section, two to three a day. So two to three a day sections are going to be completed. Thank you guys for coming to this live stream and being a part of CoinPix. How many people? I don't know where Victor's at. Victor, how many people on the live stream? Three hundred people on the live stream. Welcome guys. Thank you for watching the live stream. I'm trying to be. As consistent as possible. I am going to be consistent. I'll show up even when I'm sick. 3 to 4 PM Eastern Standard Time. 3 to 4 PM. Write it down right now. I need you guys to do a couple things. Number 1, write down 3 to 4 PM Eastern Standard Time in your time zone. So figure out your time zone, put into ChatGPT, figure out what time that is. It's an hour from this current moment backwards. We're at 4 PM Eastern Standard Time, right? Number 2, log into coinpicks.app, get your free course. And of course, download your free Autonomous Trader. Please do it now. Download your free Autonomous Trader. Do that ASAP. That's it. That's only 2 things. And then, oh yeah, number 3, tell as many people as you possibly can that we are at the bottom of the market. We're going into a full-on bull cycle and we're taking responsibility for our education experience right now. Share this with as many people as possible. What I want you to do is get a small community of your friends, right? So I'm sure you have friends that are interested in getting rich and killing the 9 to 5 and financial independence. I'm literally teaching the foundations of money right in front of your face. Then I'm giving you an autonomous trader for free. You have no excuses. Go to your friend group, stop masturbating and going to clubs on weekends, and get a little group to where you guys want to get rich, right? And then send this link to those people in the group and actually take accountability. There's people that charge thousands of dollars for this education. We're doing it free on livestream. We're doing it free for the public, so there's no excuses. So when I get rich again in front of your face and we get to $100 million this cycle, I'm gonna be like, hey, I told you, I trained you, I gave you all the tools for free on our website. Do not point the finger and blame me and stop making excuses that the rich keep getting richer and they don't help nobody. That's not true. I get rich and I help everybody and bring them along because Jesus helped me. So do it. Get your friend group. Stop BSing. Stop with excuses. Stop with the alcohol and smoking weed. It's corny. Get your financial future in order and break poverty immediately. Share this with as many people as you possibly can. Get the group together. Stop making corny excuses. Delete everything that holds you back. From showing up at 3 to 4 PM Eastern Standard Time. You're gonna be kicking your butt in 6 months because you just simply couldn't spend 1 hour, 1 hour showing up. And we're dropping the recordings as well. I am that, doing all of that. The recordings will be there too. So even if you miss it, again, another excuse destroyed and eliminated. I am an excuse eliminator. If you can't eliminate it, we are gonna destroy it ourselves. There's no excuses. I don't care if you're in Africa with no money. I don't care. You have an opportunity for financial independence because that's what crypto did for me. It made me financially independent. It's a world currency where everybody's involved, permissionless technology. I don't care if I'm in Africa. I don't care if I'm 15 years old. I get access to the same financial tools that the rich elite get access to. That is crypto. Now you get the financial tools. And you get access to the education that is Coin Picks. So that's pretty much it. Thank you guys for watching this live stream. I really appreciate it. Victor, you ready to cut it off? Thank you guys for coming. If you don't get