Episode notes
In this episode Saifedean talks to Nik Bhatia, author of Layered Money. They begin by discussing Nik’s first essays on bitcoin, The Time Value of Bitcoin and The Lightning Network Reference Rate, and why Nik thinks “Lightning banks” are on their way. They move on to talk about Nik’s book, starting with an overview of how “layered money” developed on top of gold through financial institutions, and how this eventually culminated in the emergence of a pure fiat financial system. Nik and Saifedean also discuss money as it exists today, including the role of central banks and the eurodollar system. They end with a discussion of what the financial system of the future will look like, including why Nik is confident that both bitcoin and the US dollar will continue to exist throughout his lifetime, and why we should be concerned about the rise of CBDCs.
THE BITCOIN STANDARD TOOLKIT
The Bitcoin Standard Toolkit is a selection of the Bitcoin services I recommend to readers and learners on saifedean.com, as they upgrade from The Fiat Standard to The Bitcoin Standard.
NYDIG is a leading full-service financial services firm dedicated to Bitcoin, applying institutional wisdom and ingenuity to help clients access the unrealized potential of this emerging asset class. NYDIG offers the full suite of financial solutions needed for financial institutions to access Bitcoin, from custody, execution, financing, treasury solutions, integration partnerships, and more.
Check their website here: https://nydig.com/
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To secure your bitcoins, it is important to keep your seedphrase backed up safely, and for that, I highly recommend using the CypherWheel seed storage device, a gorgeous and brilliant sturdy piece of low time preference engineering from a fourth-generation machine shop in Maine.
Check their website here: https://cyphersafe.io/
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Whenever someone asks me how to invest in Bitcoin, my advice is to accumulate bitcoins periodically for the long run, or dollar-cost averaging. When you buy every day, week, or month, you play bitcoin’s volatility to your advantage. In the long run, this strategy will outperform every other bitcoin investment strategy, except for dumb luck, and lying about timing the market. For dollar-cost averaging, I strongly recommend OKCoin, the exchange with the lowest fees for recurring purchases worldwide. OKCoin is also the bitcoin exchange accessible in the most countries around the world.
Check their website here: https://okcoin.com/
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I believe it is really important to run a node, but I don’t recommend running it on your work or personal computer, as it can compromise the performance of your computer and, more importantly, the security and privacy of your bitcoin node. A far better solution is to buy a dedicated hardware node, and for that, I highly recommend Nodl.
Check their website here: https://www.nodl.it/
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My hardware wallet of choice is the Coldcard. I strongly recommend only conducing bitcoin trades on computers that are dedicated to bitcoin and cannot connect to the internet. I like the Coldcard because it is a contained machine optimized for bitcoin and bitcoin only.
Coldcard is basically a small computer that can only do bitcoin, which makes securing it more straight-forward. Use the code BITCOINSTANDARD on coldcardwallet.com to get a 5% discount.
Check their website here: https://coldcardwallet.com/
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CoinBits rounds up your everyday credit card purchases to the nearest dollar and invests the extra cents. 95% of your Bitcoin is stored offline for your safety.
By making micro-investments over time you can use one of the most successful investment strategies known to mitigate the risk of loss called dollar-cost averaging.
Check their website here: https://coinbitsapp.com/
