This is a transcribed excerpt from the “Bitcoin Magazine Podcast”, hosted by P and Q. In this episode, Dylan LeClair of Bitcoin Magazine Pro discusses the asymmetric betting that is bitcoin.
Listen to the episode here:
Dylan LeClair: I think there may be some short-term asymmetry in dollars. And the only reason I care is because, on the other side of this thing… the goal for me is to have as many bitcoins as possible. Because I think in a decade of eroding globalization, at the end of a super debt cycle, the reality is (that) in the longer term, people will literally demand – governments, politicians will respect , central bankers will respect – to print money into oblivion.
And so I think that’s game over. And for bitcoin, you have a digital, synthetic commodity, a monetary asset that you can send anywhere in the world that has a marginal cost of production. It literally goes up and to the right – with a ton of volatility, but the long term trend… you can’t even calculate the marginal cost of production because it’s marginal and some people will produce it for d zero inputs…
There is this incentive all over the world to mop up excess energy with bitcoin mining. And so basically the marginal cost of production – because of the timing of bitcoin supply, because of the difficulty of adjustment – as the hash rate goes to the moon and Moore’s Law kicks in and as miners get more efficient and better and the hash rate continues to increase, you’re going to see bitcoin’s marginal cost of production increase per program as issuance drops to zero and again the difficulty doesn’t stops increasing.
So I think it’s…the benefit is we have this thing that no one understands that’s trading as a total risk asset and if it’s a digital synthetic commodity that applies in a credible monetary policy in a world where central banks have gone crazy, gold has been completely taken over by paper markets…
You know, there’s something potentially very big here and that’s where you can increase your buying power by a factor of a hundred if the thesis is right over a 10-15 year period.