What Were The Winklevoss Twins Talking About?!?

Hows it going ya beauties? Welcome back to The Molesy Message!

This video surfaced the other day of Dave Portnoy, founder of Barstool Sports, and the Winklevoss twins, founders of Gemini and reported owners of 1% of Bitcoins total supply. The Winklevoss twins went to meet with Dave, talk about bitcoin, and show him how to purchase some on their Gemini platform.

A lot of back and forth went on in the video about mining, who could be satoshi, bitcoin being ‘digital gold,’ Elon Musk mining gold on asteroids, ethereum, and the possibility of Dave creating his own coin.

Dave ends up buying $200k of Bitcoin and $45k of Link, an Ethereum token that powers the Chainlink decentralized oracle network, on their Gemini platform.

At the end of the video, Franky, the cameraman, asks Dave if he understands what Bitcoin is. Dave responds, “I literally have no idea what Bitcoin is…The things they were saying I thought at times where jokes.”

I call boulshit though. Dave is a master marketer and knows how to generate viral content online. He who controls the memes controls the attention. Dave, and Barstool, are masterminds in concocting memes for the masses.

Here is a prime example:

The biggest thing I wanted to touch on were the comments made about Elon Musk mining gold from asteroids. This probably confuses a lot of people who can’t think big picture. Get out from under the rock ya beauties. Technology is coming at you fast and doesn’t have time for your linear brains.

Now, I can verify the total supply of bitcoin, but with gold, I cannot. If we can mine gold in the ocean, or on asteroids, this would significantly affect gold’s value. Why? Simple supply and demand. This correlation also affects its stock to flow ratio.

Here is a perfect explanation discussing stock to flow from Plan B’s article:

*(note - Saifedean Ammous is the author of The Bitcoin Standard. READ this book first if you are getting into Bitcoin.)*

Saifedean Ammous talks about scarcity in terms of stock-to-flow (SF) ratio. He explains why gold and bitcoin are different from consumable commodities like copper, zinc, nickel, brass, because they have high SF.

"For any consumable commodity [..] doubling of output will dwarf any existing stockpiles, bringing the price crashing down and hurting the holders. For gold, a price spike that causes a doubling of annual production will be insignificant, increasing stockpiles by 3% rather than 1.5%."

"It is this consistently low rate of supply of gold that is the fundamental reason it has maintained its monetary role throughout human history."

"The high stock-to-flow ratio of gold makes it the commodity with the lowest price elasticity of supply."

"The existing stockpiles of Bitcoin in 2017 were around 25 times larger than the new coins produced in 2017. This is still less than half of the ratio for gold, but around the year 2022, Bitcoin's stock-to-flow ratio will overtake that of gold" — Ammous[5]

So, scarcity can be quantified by SF.

SF = stock / flow

Stock is the size of the existing stockpiles or reserves. Flow is the yearly production.

Gold has the highest SF 62, it takes 62 years of production to get current gold stock. Silver is second with SF 22. This high SF makes them monetary goods.

If we are to find and mine gold in our galaxy, then this will decrease the gold stock-to-flow ratio which will decrease its monetary value. So if you got excited that you might be able to collect some of Elon Musks gold, raining down like sand from the heavens, think again. If we, as a human race, can be a multi-planetary species and retrieve gold whenever and wherever we please, gold ain’t going to be worth that much. Gold will become a utility like copper.

Bitcoin, on the other hand, will always be scarce. There will only ever be 21 million Bitcoin ever created. So as we blast off into the exploration of space, you can bet that Bitcoin will be the best form of money. Gold out. Bitcoin in. The digital revolution is here. Fiat is trash and dying. Even Portnoy understands that in the video.

Need more examples? Check out this comparison of Bitcoin, Gold, and Fiat, from The Bullish Case For Bitcoin.

Bitcoin’s history is being written. Do you want to be apart of the story or not? If not, I don’t have time to convince you. Don’t let the emotion of a 9 min video deter you from understanding Bitcoin. Go down the rabbit hole. After, you will understand why Bitcoin = freedom. Freedom from the authoritarian government that is trying to gain more power from the common man.

So I have some homework for you this weekend.

Buy and read The Bitcoin Standard.

Read The Bullish Case For Bitcoin.

When our liberties are being taken from us as the government seeks to maintain power with fiat control, you will know what to do.

Freedom lies in the human heart. Freedom lies in Bitcoin. I don’t have time to convince you of this. You must embark on the lonely road alone. A f*****g stupid marketing video won’t do anything for you.

Think different. Stand up for yourself. The world is going to need you. The heard of sheep are growing. We need lions.

Be a lion ya beauties. Have a great weekend.

-molesy

As a reminder, this is not financial advice. Do your own research.

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