Demystifying the Petrodollar Scheme with Alex Gladstein (WiM082)

Alex Gladstein joins me for a deep-dive into the petrodollar system and its many hidden costs.

Be sure to check out NYDIG, one of the most important companies in Bitcoin:

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00:00:00 “What is Money?”

Intro 00:00:08

The Dollar’s Pursuit to Peg Itself to Energy

00:06:14 Gold: The Base-Layer of Human Action Historically

00:10:29 The Cost of War and the Suppression of the Gold Price

00:24:47 Gresham’s Law

00:34:17 Gold’s Shortcomings

00:39:24 The Dollar in Search of a New Anchor & The Rise of OPEC

00:48:14 Cementing the Power of the Dollar Abroad

00:52:32 The Dark-Side of Imperialism & The T-Bill Standard

01:01:28 Exacerbation of Wealth Disparity

01:04:35 Fueling War

01:10:21 Oil-Denominated Currency War

01:16:54 Follow the Money!

01:18:30 NYDIG

01:19:37 Flawed Incentives and Rent-Seeking Behavior

01:29:10 Raw Material Surplus and Inflating Food Prices by Design?

01:34:34 Peace Theory and Satoshi’s Appreciation for Gold

01:42:20 Bitcoin: The Most Expensive Property to Violate

01:47:22 Bitcoin Price Manipulation and Suppression?

01:52:40 Theirs’ Law: Bitcoin Driving out the Bad Money

02:00:07 Bullish on America, the Navajo, El Salvador, and Nigeria

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Bitcoin vs. the Petrodollar: Which Is More Environmentally Friendly? – Ep.238

Last week, Tesla announced they will no longer accept Bitcoin as payment for vehicles. In a timely episode, Alex Gladstein, chief strategy officer at the Human Rights Foundation, and James McGinniss, CEO and co-founder of David Energy, come onto the show to discuss Bitcoin, the petrodollar, and how to contextualize the energy usage of the first cryptocurrency (BTC) versus the leading fiat currency (USD). Show highlights:
● their backgrounds and how they became interested in the intersection of currency and energy usage
● why Alex and James really think Tesla stopped accepting BTC as payment
● why James thinks Bitcoin’s energy intensity is a “feature, not a bug”
● Alex on the history of the petrodollar and how the USD in recent decades has been tied to fossil fuel production
● comparing the carbon cost of a dollar to Bitcoin’s energy consumption
● what both James and Alex think of the Square and Ark Invest research paper saying renewable energy production could be tied with Bitcoin mining
● why measuring Bitcoin’s energy usage is difficult
● how Bitcoin mining in China is changing for the better
● how the Biden administration might impact Bitcoin
● where to find more information on Bitcoin and energy consumption

Thank you to our sponsors!

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Episode Links

Alex Gladstein
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James McGinniss
David Energy:

Recommended Reads:
“Uncovering the Hidden Cost of the Petrodollar” by Alex Gladstein…
“Think BTC is a Dirty Business? Consider the Carbon Cost of a Dollar” by Susan Su…
“Bitcoin is Key to an Abundant, Clean Energy Future” by Square and Ark Invest…
Elisabeth Steyn thread on Tesla and energy credits…
“Tesla seeks entry into U.S. renewable fuel credit market” by Reuters…
“Debt” by David Graeber…
Bitcoin energy consumption index…
Cambridge study on cryptoassets…
Triffin Dilemma…

Alex Gladstein’s Recommended Follows:
Nic Carter

Lyn Alden

Susan Su

Luke Gromen

Michael Hudson

Will Wall Street Ruin Bitcoin? Featuring Ben Hunt and Alex Gladstein

As traditional financial institutions line up to get into bitcoin, a debate on whether it can stay permissionless and censorship resistant.

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Ben Hunt is the founder of Second Foundation Partners and lead author of Epsilon Theory. Alex Gladstein is the chief strategy officer at the Human Rights Foundation.

In this conversation, they discuss one of the most important burgeoning topics of the year: In a world where bitcoin (BTC, +4.91%) goes mainstream with traditional financial institutions, can it keep its more renegade spirit? More important, can it keep its more renegade features such as permissionless access and censorship resistance?

Ben and Alex join for a good faith, spirited discussion of whether the bitcoin we know today will be preserved or whether it is doomed to be co-opted by the financial powers that be.

See also: SEC Commissioner Hester Peirce on a Bitcoin ETF, Custody Rules and What’s Next for the SEC