Is there a sense that AI is going to make mining substantially more efficient and therefore more profitable?

That's a great question.

I hadn't really thought about it much, and I haven't, I haven't talked to any geos to ask if they're putting, you know, core samples and drill holes into AI in order to try and, you know, target future drill, drill holes.

But it, it would make sense.

I mean, what you're saying makes complete sense to me.

Um, surprisingly, I think the industry's probably pretty slow, has been pretty slow to adopt that stuff.

I mean, it's still kind of a seat of your pants sort of thing.

But this time things are good, right? Yeah.

Like, the, you know, central debate points... for us on economic policy are nowhere close to where they,

you know.

That's right.

I mean, we don't have the kind of industrial policy necessary to drive that growth.

But, you know, to be fair, I mean, I'm very supportive of growing.

I mean, growth is a good thing.

I just think it's going to be inflationary growth, and it has to be inflationary growth.

So explain what that is and how the Fed has changed.

speech last week, what you expected to do to markets.

Yeah, it was almost like he was trying to trigger the algorithm strike because he said hike a bunch of times.

Clearly, my take on what happened is that he got the fear of God put into him because in the last three weeks, the sense activities led to the debasement trade came alive, right? Bitcoin went from 64 to high 70s, and it's gold took off, went up 7% one week, and then gold stocks went up 18% that same week, and silver, same thing.

But since rambling on about increasing the size of buybacks and helping Japan and maybe extending the size of the swap line that they're willing to issue Japan, et cetera, all of these things were deemed to be dovish, and they are.

And so that ignited our trade, and obviously, Warsh saw that and thought, oh, I better come in and calm that down as much as I can.

So it was clearly a hawkish speech.

And he's painted himself into a corner now.

to

mean,

it's going down 50-something percent, still huge, but it's not 90%.

And there have been plenty of successful assets that this is the price of being in them.

I mean, Amazon stock did the exact same thing.

Amazon was down 90% on the dot com bubble burst, you know, and but, you know, it just kept coming back.

And interestingly, it's the same kind of business.

It's a it's a network based business where the value grows, you know, at some exponent of, you know, the number of users.

If we were to build well, evolve in productivity, start restoring a little bit more of a sound money standard, how could the average family experience the future, say 10 years from now, different than what we're experiencing today? What do we have to look forward to if we're all responsible allocators?

What are the chances? How does that materialize?

Yeah, you'll...

I talked about that a little bit in my earlier comment.

Yield curve control is what they did after World War II.

It's like quantitative easing.

Quantitative easing is just printing money.

Yield curve control is what desperate governments do when the market stops buying their bonds or they're afraid that their bond prices are going to collapse and the interest rates are going to go to the moon.

But what kind of timeframe do you think, you know, if you had to throw a dart at a wall, that it takes for the Overton window around Bitcoin scarcity to kind of shift and become more common knowledge?

M- Where do you think we are, and, you know, how do you think we're gonna go from here?

Yeah.

I'm right there with you.

Um, so let's just kinda review the bidding and how do we get...

You know, just to bring people up to speed of how we got here.

Um, let's start in early 2025.

You know, the notion was that DOGE was gonna come in and solve all the monetary problems.

Mm-hmm

Yeah, if everything holds up according to, you know, the data weight.

But it's better than that, Chris.

It could fall 50% in value and you're still fine.

It could.

It could fall.

Bitcoin could go to 30 and this company is perfectly fine.

I mean, you'd have at a $30,000 Bitcoin price, the company would have a $30 billion round numbers you know, market valuation.

you.

mean, you've been in there fucking 10 days.

And, you know, the market thinks he's going to raise rates.

And I don't think he's going to raise rates.

In fact, I think he's going to cut rates.

I think he's foaming the runway to cut rates, you know, with this AI productivity argument.

And then his so-called task force is going to come in and tell him that the inflation is overstated and that we should be using the Dallas trimmed medium PCI, which is a 2.3 instead of three something.

And therefore we can, you know, and he's a supply side or we know that.

I just want to get your read, not just what your overall take is and your thoughts going forward.

So I wanna get your take on that, Larry, and then, well, you know, we'll, we'll, we'll di- dive deeper down the rabbit hole.

Yeah.

Well, look, trying to predict the price of Bitcoin is a very hard thing to do, and always has been.

It kinda trades like a wild animal.

[chuckles] It just doesn't do what you would expect it to do, and that's, and that's why HODLing is so hard.

Um, you know, you might...

You know, when it was going through a hundred, and it was a hundred and twenty-four last October, or, you know.

Mm-hmm

But over to you, Larry, for one last comment, and then we'll open it up for question.

Well, I think y- you're right.

I mean, it's, you know, there's, it's clearly there is a speculative attack on this asset right now.

Um, you know, and I, I mean, it, it fits with a lot of other parts of the picture, although, you know, Warsh has even, you know, mentioned that he's pro-Bitcoin, and, you know, a lot of the people in the administration are pro B- Bitcoin.

But, but clearly, you know, the, the, the debasement trade is under attack.

Um, and, you know, by Warsh changing the rules and saying, "We're not gonna give you any fucking guidance.

We're gonna li- leave you in the dark," and then by not doing a dot plot himself, but letting everyone else have a hawkish dot plot, he's fooled the market into thinking that he can actually raise interest rates, when mathematically that would be a disaster.

So-

So where can you best find undervalued stocks in this sector?

Okay, well, that's a great question.

I've always maintained, and I always believe that, as you know, there are kind of three buckets in the... well, maybe four.

But there, there are three obvious buckets in the sector.

There are the drill stories, there are the production, um, stories or the developers, and then there are the producers.

And, um, you know, the drill stories are the riskiest because, you know, they're trying to find metal, and if they don't, they're, they're worthless.

If they do, they can grow up a lot, but, you know, no one knows what they're gonna find.

And, and as you pull it up, Larry, are there any jurisdictions you're avoiding, to where when we talked a couple years ago, you would go there, but you would no longer go there as an investor?

What do you say to that?

Well, he's right in the sense that the five thousand-year-old safe havens are the precious metals.

And, and the reason that, you know, the precious metals are outperforming Bitcoin is that central banks buy them, and there are seven billion people on the planet who understand that gold is, is a safe form of money.

Bitcoin is an emerging safe haven, and I want to emphasize the emerging piece of it.

You know, the number of people who are aware of Bitcoin in the world, it's probably less than five percent if you take the entire world, and the number of people who own it is probably, you know, worldwide, it's probably less than one percent, and everyone's quite skeptical of it.

And so this is just what happens when you have a new monetary standard coming into place, and it, it goes through cycles of Bitcoin's going to ten million, and it's going to eat the entire world.

You know, where, you know, I remember Bitcoin was one hundred thousand, Sailor was throwing his party, everybody was thinking, "This is fabulous," and gold guys were in the dumps.

So what do you say?

But what do you see happening in the greater market and what will trigger the big print that you're actually predicting?

So I have a chart on this.

I don't know, Paul, if you can pull it up or not, but if not, it doesn't matter.

It shows the growth of the money supply as against the debt.

And, you know, the fact, yeah, here it is.

The fact is that what you can see is that the black line is the Federal Reserve balance sheet, which is a good proxy for the reserves in the system.

And with the The lighter line is a line that shows an exponential growth curve.

Right.