The Mechanics of HODLing

Every passage, on the record.

1. 00:33Claim

   At a very basic level you hodl because of the number go up technology. The longer that you delay consumption by offering your energy to the network, the more reserves you're going to have access to in the future because you own a fixed percentage of the TASOE, of the total accessible supply of energy.

2. 00:33Idea

   You own a fixed percentage of the TASOE, of the total accessible supply of energy.

3. 01:09Claim

   The longer that you delay consumption, the better it is for you because when you finally do decide to consume some of that energy that you have provided to the network, you will have more of it.

4. 02:48Claim

   HODLing is essentially you going to the network, you have done some amount of work in the real world to unlock energy... You need a way to store it so that you can have access to it in the future. The reason that you would want to have access to energy in the future is because it provides a level of safety against the unknowns that happen in this crazy world that we live in.

5. 02:48Idea

   You have done some amount of work in the real world to unlock energy... now you have more energy than you can consume in that moment. You need a way to store it so that you can have access to it in the future.

6. 03:19Claim

   We act in order to acquire energy reserves because that allows us to continue our existence. And we are going to continue our existence because again, we want to lower the entropy in the world around us.

7. 03:55Quote

   We are transforming it. You cannot create it. You can only transform it.

8. 04:28Claim

   It will outcompete every other form of money. Money is the way that we store the energy that we have and that we traded amongst ourselves.

9. 05:04Claim

   That's how it eventually starts. That's how every Bitcoin starts. And you can trace that back through the entire transaction, through the ledger history.

10. 05:40Claim

    The 21 million units of Bitcoin represents the total accessible supply of energy available to the network at any given time.

11. 07:54Claim

    New blocks are being created on average every 10 minutes. And at the moment with the block subsidy, it's 6.25 Bitcoin or 900 per day, which means that during the time that you are hodling, supply increasing means to stay at the current price level, Bitcoin either has to not be sold or new demand must enter.

12. 08:57Idea

    This is when number go up technology is activated. And that number go up technology is a Bitcoin feedback loop. It starts with the halvening. Bitcoin supply is cut in half every four years. Demand remains constant. It triggers price volatility, which brings more attention to Bitcoin. And as more attention comes to Bitcoin, that means more education, which leads to even more adoption, which equals more demand.

13. 09:32Claim

    As conviction builds amongst people, the more hodlers are birthed... and as that happens, the liquid supply grows smaller and smaller and smaller. The less liquid supply, the higher the price goes.

14. 10:37Claim

    The more this behavior is rewarded, the more hodling is rewarded, the more energy is drawn into the system and the gains that you get, they'll be measured against other assets that have been used as a saving substitute.

15. 11:38Claim

    The winners are those that are able to get them to trade based on the best products possible, based on creating the best possible products possible... that makes society better as a whole because those that are rewarded are the ones that are creating the most value.

16. 12:10Reference

    That increases awareness, the awareness, again, going through even things like your Parker Lewis gradually and suddenly series of that feedback loop that ends up happening.

17. 12:52Quote

    The best place to market your energy is Bitcoin. There has never been a more efficient way to make your energy available to others than Bitcoin.

18. 13:22Claim

    They have two reasons why they would want to consume that energy that you have offered to the network... They can either increase their own reserves, or they can increase someone else's reserves.

19. 14:24Analogy

    Let's say they're purchasing a tool which will make them more effective. I think like, you know, they were digging holes with a shovel and now they wanted to purchase a Bobcat. So they're going to be significantly better or significantly more efficient at digging holes.

20. 16:32Analogy

    Instead of buying the tool, they're going to buy a yacht or they're going to buy a fancy car or they're going to buy a piece of clothing or something that doesn't immediately allow them to unlock more energy.

21. 17:35Quote

    Number go up is Bitcoin. Number go down is anything that isn't Bitcoin.

22. 18:05Prediction

    They're certainly not going to be able to raise interest rates because they can't raise interest rates at the moment. So if you're losing energy from the system, there's not as much there to pay back the debts. Well, you're only going to have to inflate more and more and more.

23. 19:09Quote

    You're allowing individuals, you're allowing different entities that you do not control to steal the energy that you had previously unlocked through your work.

24. 19:42Claim · condensed

    The system will eliminate individuals that do [store in number go down instruments]... they will not have as much energy because it will be diluted by the individuals who are making the inflation and causing the number go down even quicker.

25. 20:46Claim

    The Bitcoin market is the best place to distribute energy ever. By far the most efficient. It can't be manipulated or stopped. It is permissionless.

26. 21:16Quote

    It's 24, 7, 365.

27. 21:16Claim

    It's divisible down to one one hundred millionth, right, one single Satoshi. That is the lower bound at the moment.

28. 22:18Claim

    Everyone who chooses to save in the best form of money ever invented is now working for you. The individual incentives of Bitcoin people makes them want to choose it. They are actively choosing what is best for them.

29. 22:48Claim

    It also just happens to be that what is best for them on a personal level in terms of energy reserves is also best for the entire network. And what is best for the entire network is best for the holders of the network.

30. 23:21Prediction

    Over time, energy will flow to the individuals who are providing the most value... the holders of Bitcoin over time will gravitate to individuals who are the most valuable, i.e. the people who unlock the most amount of energy.

31. 23:52Claim

    We wouldn't want individuals who are a drain on those around them to be rewarded. No. The energy that we have control over as a species, we would want that going to the best allocators of the energy, because that's going to make it better for everyone else.

32. 24:25Claim

    You're going to need a low time preference. You're going to need to seek out higher quality goods. You're going to have to have that negotiation with yourself and understand the benefits.

33. 24:56Claim

    You can do that by hodling, you know, 95 percent of your stack and letting the rest, letting the five percent fund your daily needs. And as the Bitcoin number go up technology does its thing, that five percent will be able to sustain you essentially forever if the system works as planned.

34. 26:04Prediction

    Hodling will increase as word spreads, as word gets out, that this is the way that you can receive massively outsized gains in the access to energy reserves. This is only going to increase.

35. 26:35Claim

    Don't consume the energy that you provided to the network. Just let other people use it because the marketplace that is Bitcoin and the incentive model behind it and the way that it works means that that energy will eventually flow to the people that are the most productive, and the people that are most productive by definition are the people that are unlocking the most amount of energy.

36. 27:11Quote

    It's the least selfish thing that you can possibly do. And at the same time, the thing that benefits you individually more than anything else that you could possibly do.