Will Bitcoin Survive Quantum Computing? | Jordi Visser

0:00 So, quantum is a hardware issue. I want everyone to hear that. Cuz we're going through this with AI right now. What's slowing down AI development? What's slowing down AI usage? It's hardware. It's the physical world. That's where quantum's pain point is. Will it get there? He says 20 to 40 years. Other people say 5 to 7. Okay, so his point is this. We will have time to respond to it. Now, part of what Chamath said, which is true today, is >> What's going on, guys? Today's conversation with Jordy Visser is a classic. In this conversation, we talk about quantum computing. Is Bitcoin going to zero? What's going on with the hedge fund unwind? And then we get into how we're actually using AI. What is so inevitable about this technology? How's it going to impact your portfolio? Then we talk about warp sciences. We talk about war dogs, sharks with lasers, all kinds of crazy stuff that's going to get you thinking much more about where are we headed? How should you be allocating your capital? And maybe what are some of the areas that you should stay away from, as well. Here's my latest Jordy Visser. Hope you enjoy it.

1:03 All right, Jordy. Let's just start with the big topic. Chamath Palihapitiya said that Bitcoin's going to zero. >> The big topic. >> Yeah, do you agree or disagree? I mean, that would be scary, right? I got a lot of my net worth in Bitcoin. Are you worried? >> I'm not worried. >> Okay. >> But I can tell you my subscribers are. >> Okay. >> And other people that have reached out in expos that I've done that had nothing to do with with Bitcoin.

1:25 let let me let me give everyone my thoughts on this because, first of all, Chamath is a a podcast person, for sure. So, viral takes, especially when he's on another show, not his own show, become important to his show and his life. So, I'm I'm sure this was part of it. I will leave all the rumors of his own exploration of Bitcoin and how much he'd be worth if he had held what he originally owned, or whatever. I don't I don't get into that part. So, let me just go through the concept of where my head is with with quantum.

1:59 >> Cuz cuz he said it was going to zero because of quantum. >> Because quantum and that this is old technology. >> Okay. >> So, here are my thoughts on it. First thing is there's a software issue right now. And the amount of hackings that we're having currently, there's cybersecurity alerts around the globe. This week there was a website one with PHP. Cloudflare went out and talked to all about it. banks are being hacked at a pace never seen before and Axios had an article on that this week.

2:31 I just want to make sure people realize that >> The Axios title >> >> that we have right here. The internet's hidden security nightmare and how AI exposed it. Another one. Scoop. Madison Mills, one of the better AI reporters right now. Scoop, unvetted AI agents are accessing US bank accounts. >> So, here here's the reason that I've thought about this a long time, but the way that I started before I would allow myself, which was in 2020, to make Bitcoin an important part of my net worth, was to understand this concept and get a sense as to what would happen.

3:12 So, the way my brain has dealt with this is very simple. AI agents were known to be coming and once they got to the level of 12,000, 12 billion, a trillion, all being able to hack your passwords and that's what I want everyone to think. Right now you have a gazillion passwords and I'm sure like most people they use the same one over and over again for many of their sites. That's easily hacked by agent swarms in 2 seconds. Hell, that's easily hacked by anyone who's trying to get in, but now with agent swarms everything's being hacked on a regular basis. So, a year ago this was not an issue cuz we didn't have agent swarms. The reason I'm bringing this up before this Adam back who was involved with the Bitcoin white paper >> >> who's a cryptographer and a PhD in computer science.

4:05 Go look up what Chamath's background is for this. So, if I'm going to take anything seriously, the research that I did was to listen to Adam back who you've had on here many times, right? Satoshi. >> >> Yes. So, his point on this is it's a hardware issue. We will eventually get to the point where quantum So, quantum is a hardware issue. I want everyone to hear that cuz we're going through this with AI right now. What's slowing down AI development?

4:34 What's slowing down AI usage? It's hardware. It's the physical world. That's where quantum's pain point is. Will it get there? He says 20 to 40 years. Other people say 5 to 7. Okay, so his point is this. We will have time to respond to it. Now, part of what Chamath said which is true today is the community has to come together on solving this problem, which I agree with. But, you know what speeds up crisis management?

5:05 A crisis. You know what else speeds up crisis management? A crisis in the current world which is what we're going through right now. Things are going to move to cryptography and then JP Morgan will be involved in the end game. The fact that all of the banks are now moving to the crypto guardrails, even if it's through they don't want to fall behind. They now have a vested interest every single day to speed up where the Bitcoin solution is.

5:34 So, if you ask me what the solution is, first of all, cryptography is definitely better than what we're on today. There will be some cryptography base because everything will move there and then we have to find the solution on that side. And that is effectively Adam back has made it very non-emotional. I watch him. I've listened to him a bunch of times. I listened to him in 2020 in as many things as possible. The same way that I mentioned William Mougayar.

5:57 I want to find the people that are older that have experience that are experts in the topic. So, what Chamath said is one for headline grabbing, two there's some I don't know. He missed out on a big investment part that he could have been bigger in. So, that's part of it. And I really do believe that in the end he doesn't have the credentials to say what he said and the irony is my whole thought has been, which I still believe, is every day we are entering a very difficult period for established companies. I'm going to be on a panel this week where one of the topics is about the difference between owning equity and owning tokens.

6:32 So, that is a weird question to me because they're all merging together. What did A16Z do this week with their crypto title in their funds? It's now frontier. Why did they say frontier? Because the difference between crypto and any technology, they've all morphed into it. You can't get around it. And what's the reason that they mentioned in the list? It's what I've talked about repeatedly. The agentic world is here and everything that they're seeing on the front lines, A16Z they could make no good investments over the next 10 years, but the one thing I know that they have, really smart people that have looked at technology at the beginning stages and they're seeing every development that's happening in the AI native world. And if you listen to the interview they did on their podcast this week, which came out today I'm just telling you you can't leave and then listen to Chamath and believe what every smart person is involved in right now and know that we still have 7 years to prepare for this. So, I find the statement as completely just a joke.

7:32 >> I have three things. You and I I think end up in the same end game of agreeing Bitcoin's not going to zero, quantum's not going to be it's a risk that needs to be taken seriously, but it is not going to be the thing that takes down Bitcoin. Knock on wood. but I actually like the fact that Chamath does not have the credentials because, I am a I'm a subscriber to he has this thing a learn with me. And what my understanding, I don't know all the details, but my understanding is he hired a team I think out of one of the big consulting firms and was basically like, I want to learn about these topics. Go build me these huge presentations of energy in America and what the problem is, health care, you know, whatever. And so if you subscribe you can get these things and they're like super intense. They're, you know, tens and tens of slides long that basically break down an entire problem and and explain it.

8:24 So I talk about stuff all the time that I'm not, quote unquote, a credentialed expert of, right? I don't That part doesn't bother me. I actually like maybe there's unique thoughts, etc. The part that I think that he maybe is missing on is there's always a cat and mouse game between the good guys and the bad guys when it comes to technology. And what you find is usually the good guys have more money than the bad guys, but the bad guys have more time to think about using the technology. And so in a world of abundance there's a little bit of a weird thing where now the bad guys have access to lots of intelligence, lots of time, the speeding up of time that you've talked about, right? And so cybersecurity becomes this huge issue. You mentioned some of the things that we saw there.

9:10 But I still think that the, quote unquote, good guys with the money end up being able to resist all of this even though AI's amazing, all this stuff. And you see that in like who created this technology that then is being weaponized. Quote unquote good guys. I don't Let let's, put a lot of quotes around that, right? >> >> But like people who are not trying to go around hacking websites created technology. So it just feels like this is another thing that is being said about Bitcoin.

9:39 By the way, Bitcoin is held in strong 80 to 85,000 dollars. Doesn't matter what happens with oil. Oil is now, you know, 115 or so. There's tons of concerns about the AI trade with huge sell-offs. Quantum, I mean, we could rattle off 20 things that were said in the last 7 days. Bitcoin just doesn't care, which I think you believe is like a strong data point that is going to go higher into the end of the year.

10:04 >> Yeah, I think now we we saw a small indication of it on I guess it was Wednesday. >> Okay. >> The only up day of really the week. Well, no, there were there in the stock market it was up Monday, Tuesday, Wednesday, it was down big on Thursday. But on Wednesday, which was following the SpaceX news, you had a very large jump the second that people thought, okay, this must be over. We finally got the confirmation that compute demand is off the charts and Elon's coming to the to to the rescue. it it immediately went back down the next day, but yeah, Bitcoin has just held in there and if I tell people the damage that's been done to hedge funds, I mean, this is a historic month.

10:43 More so than even July, believe it or not. This is much bigger month than July was. >> Negative for hedge funds. >> Yes. And and that's because of the breadth of the the damage. before I get into the expanding breadth and the contagion within the hedge fund. I do I do want to add to something you said because I do agree that people like Chamath that have a huge listener base, it's good for people to say the things that he said as part of a process cuz he also fits into something Mark Andreessen said. If you ask me the smartest person, the person that I will listen to no matter what, who I believe brings to the table an incredible knowledge of history, a relaxed, you know, response with no hyperbole, I I Marc Andreessen is number one for me. Okay? I can listen to him endlessly.

11:39 >> he's very smart. >> Yeah, and he's not selling anything. what's the biggest problem with Jensen Huang? At the end of the day, he's talking his book. What's the biggest problem with with Elon Musk? He's talking his book. And this is a big negative for everyone when I go through X. Like if people attack me, it's cuz he he's talking his book. >> I never talk my book. >> >> Yes, no, you're you're doing well. >> soviet.com soviet.com Go ahead.

12:04 >> What Marc said on the podcast, which is something I believe in, but it's the reason that I got involved in Bitcoin in the first place. I've told this story before, but you have to understand when my 13-year-old son had turned $700 into $80,000, subsequently losing all of it, okay? Which I say repeatedly. I knew there was a bubble in 2021, but it also told me that there was something here because when I asked him how he did this, it was really intelligent. And when you normalize it for a 13-year-old, I realized that the gaming that he was really good at was adding to his ability to go use Reddit and Twitter and do research and do this. He was adapting to the times, and he believed in Bitcoin.

12:48 He didn't believe in the S&P 500. Now, that age bracket, it's still the same. What Marc talked about on the podcast, the a16z frontier podcast, was he said, "There is an age bracket for technology that has been there." And I forget the book that he referenced, but he basically said, "The way it goes is up until, you know, 15 to 20 five, it's just part of your life. And that's where my son was." So, let's assume whatever the age bracket was, 13 to 21, it's just part of your life. Like crypto's just you know it. AI is something you just know.

13:21 Then from 25 to 35, you're focused on AI for making money. That's where my son is kind of now is figuring out how he's going to set his life up job-wise with using this technology. And then above 35 you view it as evil. Any new technology, and that is the whole point about whether it's crypto, whether it's Bitcoin, or whether it's AI. That is why people are perma-bears on AI. There is zero doubt that AI is the inevitable part of our lives. Like there's no question about it. It's where all the investments are going, and if the investments are going there, you can have corrections, you can even have the dot-com bubble where you get a 4-year delay between the bottom and then the iPhone. But it's coming. Like there's no way to get around it. It's going to solve healthcare, all these different issues. So, I think when you really break down what you just talked about and where it goes, there is an element of the age thing, and Chamath is in that age bracket where psychologically he's already made his money. He has no reason to believe in in Bitcoin. There's nothing there for him.

14:24 And as Michael Saylor said, you don't find Bitcoin, Bitcoin finds you. Now, let's go back to the point on the hedge fund side. In France this week, we saw a mass and this has gone on now for 7 weeks, a massive blowout. >> Careful. Careful what words you use. >> >> Are you talking about the financial market or the streets? >> True, true, true. we'll leave the the social aspect alone, but you have French bond yields versus German bond yields or versus the swap curve without getting too wonky blowing out, which basically means the unwind of a carry trade. So, if you were long French bond yields and you were short German you were getting a spread that was, let's say, 125 basis points if you just carried it. So, as long as France doesn't default and you carry it for a long time, and this was happening across the curve, you make money.

15:19 >> And you do it with leverage. >> Yes. And that started to unwind. We started seeing news articles come out, but it has really accelerated this week. In fact, the first 4 days of this week were just the biggest week, even bigger than the EU crisis week back in 2011-2012, that whole period there. So, you had that. You had the core weave debt, so you had credit that had unwound. The reason that's important is all of the big multi-strats that you get to see, you know, in that are hundred billion, whatever, and they're levered 20 times, say.

15:51 So, you're dealing with trillions of dollars of say they're dependent on if one asset breaks down, it doesn't really matter cuz you have 50 other strategies that could make money. Relative arbitrage, add deletes, all kinds of different things. But when credit gets hit, fixed income bonds get hit, regions get hit, the diversity the diversification benefits drop down, and you end up seeing what you've seen. And Goldman Sachs reported last week >> >> that since 2020 after COVID, there had only been 3 days that the major strategies, so long short equity, quant, and then multi-strats were down more than 80 basis points in one day, all three strategies. So, at least 80 basis happened three times since COVID. All three of those were this year.

16:44 Well, we had another one on Thursday of this week. This one was greater than 1% for each of them. So, that just means that this is not just long short equity. This is everything going at same time, and I mentioned that this reminds me of LTCM. It does. It also reminds me of the quant quake back in August of 2007. So, I bring that up because as people are watching like what's happening and going why why are these semiconductor stocks down? And I saw something today that the best performing stocks this year, the 20 best performing stocks were down yesterday like 5 to 10%, and when you go look at the they're still up like 100 plus percent and most of these are the AI names. So I'm telling everyone listening, number one, I did a video on this is this is not a bubble.

17:26 AI is not a bubble. It's inevitable. End of story. there can be delays and there can be hiccups. And here's the thing, there are no free lunches and I remember I said this to you back in May and June on on on videos. People can go look them up on their own. There are no free lunches in markets. Markets go up and then they correct and so far the S&P 500 is still up over 12% year-to-date.

17:49 And we just had a massive unwind. I don't know when this is officially going to end, but I will say that yesterday felt exactly like situational awareness day because it started right after the close on Wednesday. I picked my phone up and as I do before I kind of start getting ready for bed, I looked to see where the S&P futures were and there was no reason for them to be down close to 30 handles, which says to me there was a fund that was in trouble.

18:15 And we're just kind of going through this thing. I think we're near the end of it. If not, I gave the dates that I thought for people would be the catalyst. One is when we get through the the hyperscalers. We went through Meta, nothing bad came out in there, but it still sold off. we have the hyperscalers and then we have the midterms and we have the quarterly refunding announcement. Those would be the three areas. So I think the low for this AI portion will happen within side the next two weeks.

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19:23 Institutional-grade automation that works across every major asset class. There's no more emotional trading, no more missing tax opportunities, just smarter, hands-free execution of your preferred strategies. Go to archpublic.com right now. Connect with their team, set up a time, bring your account in if you'd like, then you can learn what automated trading can do for you. archpublic.com >> I do think the uncertainty around the midterms, not uncertainty like fear-based, just like who's going to win, naturally plays into this. Plus, you get the AI fears, and so it's very clear there's like a bunch of clouds, if you will.

19:57 The second the midterms occur, the clouds will part, the sun will come up into the end of the year likely as strong. you mentioned AI is inevitable, and I've been thinking a lot. So, maybe I will debut my new phrase for the next couple of years. AI is smarter than you. Smarter than me. Smarter than everybody watching. We have officially reached that point. >> It's smarter than hedge fund managers, too. >> 100% >> Yeah. >> That is the zero-to-one moment that every single thing in my worldview I have updated in the last three to four months on the premise that AI is now smarter than me.

20:37 So, how do I give it as much con- >> context as possible? How do products change? How do asset prices change? How does the funding rate change? What do hedge funds do? All all this stuff >> now boils down to AI is smart. I always say that investors get one idea in their entire life to invest on, and they just expose it over and over again. Warren Buffett, buy things for less than they're worth. He just did it a bunch of times and built an incredible amount of wealth.

21:02 You know, if you go and you look at the RenTech guys, there's math, and there's inefficiencies, all this stuff. You can just go invest in my business. I think that our entire generation, the one big idea is they're never going to stop printing money. I think a one A now though is there is now technology that is going to be way smarter than us. It's already smarter than us, but it's only going to get worse. I AI-pilled a boomer this week.

21:26 And I want to tell you some of the details because it actually had more of an impact on me than it did on them. There's an individual that I know that has a piece of commercial real estate. They're trying to sell it. They've been trying to sell it for a while. And I they kind of every once in a while when I talk to them they mention it. I said, you know what, let me try to help you.

21:44 So I took the address and I put it into Grokbot and I said, hey, this thing hasn't sold. I want to try to sell it in the next 45 days. Come up with a plan, do the research, you know, all the things you would expect. It did what you would look at. It went and it found comps and it built the whole plan, whatever. And then it did something that I would have never personally thought to do. It went and it looked through all of the local real estate like land sales and it gave me a target list of people who have been buying up land in that area and said, you might want to just call these people and see if they're interested.

22:19 And I literally it was like a whoa. And I called up this person and I said, hey, look at how smart I am. >> >> I have this list and then I eventually told them I said, the AI created it. And so I've been thinking about this one moment where I'm like, how many people do you know who have ever listed any piece of real estate, residential, commercial, whatever, have ever thought, maybe I should go build a target list to do outbound sales for the real estate.

22:47 That's not something that you just like train on. And so the reason I say that is this idea of like AI is inevitable. Well, like if it's smarter than us and it can do things like that, then actually the race is not like just the hyperscalers and building and all this. For people who are not involved in those businesses, it's actually how much penetration can you get AI into your life? How much are you going to use it? And the people who get there first, they're actually the ones who are going to be most successful and have the most productivity and all stuff.

23:17 But investing-wise, let's just shrink it down to that investing world. I know some people who use ChatGPT, Claude, whatever, Google on steroids. I think you use it much more advanced than that. But there's somebody out there who's created a you know, AI agent hedge fund that's trying to day trade, whatever. The further along that curve you get, the better your return should be, the better your finances should be. And it just feels like when you view the world that way, the people who are like AI's a bubble, AI's not going to happen, they kind of just sound stupid.

23:51 Right? Like like it's it's like so far behind, it's such a dinosaur world. What are we talking about? >> All right, so let me give you two forks on on this topic. And I think this is important. In fact, I'm going to direct it towards the parents. So first I'm going to use a conversation I had with a friend of mine who I hadn't seen in a decade. Was in town. And this person close to 40, decided to go back to school, went to law school.

24:22 So my first question was, so how is school? You know what Harvey is. And the person said, yeah, they were in the tech field. Okay. Yeah, I know what Harvey is. Okay. how's that impacting the way you view, since you know it, how is this school, which is a really good school in New York, dealing with this issue? And the person said, it's it's incredible. It's almost like they're ignoring it. But to make it worse, and I had I've I've heard I've heard a lot of stuff.

24:56 I've never heard this. Before they enter the classroom, they have to they can't enter with any technology. >> No phones? Excuse me? >> No laptops, no nothing. This is what they've come up with at the schools. >> Is it a law school? >> This is a prominent law school that every single person listening to this knows. So, I don't want to get into the conversation cuz number one, I trust this person implicitly and they didn't do it for any other reason. In fact, completely opposite. This person is I only hang around with people that are very down-to-earth and can have deep emotional conversations and really enjoy the topic of where things are going.

25:32 And this was literally like, "No, they don't know how to handle it. This is their solution." Their solution is we can't police it. And I understand why, because recording devices, you don't need the professor anymore. >> >> You just have AI listen to it and then you're taking away the whole thing, but also you don't know whose work is done. And my first response was, "You know who's going to know? People that didn't do any work.

25:59 The people that hired the person. The people like if you're not using AI in a creative way to get back to your point, you're making a This is what schools are doing to kids, okay? This is unacceptable. Like this is unbelievable. >> them raw dog classroom? That's crazy. >> we're we're teaching you guys have to memorize everything. >> crazy out there. no phone? I'm surprised there's not withdrawal happening in the classroom. >> So, let me take what you did and connect it back to that same son I mentioned who's no longer 13, okay? He's now a junior in college.

26:37 So, as you go through this whole thing and you listen to what he's saying. So, he's in an internship. >> Mhm. >> That internship, he tells me how excited he gets whenever there's a meeting. Because he enters the meeting and all he does is listen to the problems and he leaves with a ton of ideas. Because his goal is to please the people by solving their ideas with agentic workflows. >> Grox just built the solution by the time the meeting's over.

27:06 >> But but and that he's been doing this now since July. >> Yeah. >> They don't want him to go back to school. He and I are talking about whether it makes sense for him to go back to school and finish up or not. >> Mhm. >> If you don't allow your kids to use it and this is the beauty of it. This whole like reverse engineering now. If your brain doesn't work when you hear something you go, I can make money off that. I can make money off that and you're trying to graduate with a degree where you're going to make money by graduating and being one of like those days are over. That is not the way this is going to work and if you listen to what the a16z podcast talk about, Mark literally said the gap between AI native companies and the incumbents has never been wider. Like it just keeps getting further apart. So you don't want your kids to go to one of these incumbent places. You actually want them to have these entrepreneurial skills that you're describing and create an idea that can monetize and turn into something. If you're a lawyer, you want to embrace using Harvey cuz Harvey can't replace all lawyers, but it can certainly speed up the process of being a great lawyer.

28:12 I have a lot of ideas on what to do with my business cuz I think content keeps going up in value just like sports teams. But let me rephrase it. Good content. Content where you're actually trying to teach the people. You're trying to not scare the people and you're actually trying to get them to be empowered. I actually think there's value to that which is why I started to do this. I think when you start thinking about the issues and how you can leverage AI into your business, you start to get more empowered, but you also start to get a realization that there's infinite amounts of ideas of problems that need to be solved and the reason is because most people don't use AI.

28:49 It It is also I've been thinking a lot about active versus passive usage. So, active usage is like I go to ChatGPT and I ask it a question I had to type. Passive usage is every meeting is recorded, the AI takes the transcript, creates notes, emails the notes to everybody, and then stores it somewhere so it can be referenced as context later. The passive usage to me is where most of the magic is. We see this with the proactivity of Instinct, Muse, Dots, you know, Grokbot, whatever.

29:23 And so, as the world shifts more and more to the technology being available in a passive manner, but like it's like passive plus automation, >> Mhm. >> you start thinking inside these businesses like we are going to just have autonomy. Like like it is going to become this autonomous thing inside of a company. Now, there's a couple other things that I think are fascinating. I've told you before that we have more agents that work at the public company than we do people, right?

29:51 Okay. I don't think that that's something for us to like beat our chest about. I think like that's becoming prevalent across a lot of companies. But, recently we started thinking about okay, we've been using most of the agents for analytics, engineering, you know, things that are more kind of productivity and like product-based. Now, we're thinking about finance and operations. And so, I went to finance operations folks. I said, "Hey, what would you like?" They started coming up with all kinds of use cases that I would have never thought of.

30:19 And I said, "You know, it's interesting. What if I just take what is essentially a brainstorm, and I just feed it into, you know, whether it's Grokbot or something else, and then ask it ideas like this, but make more of them? You know, like what else could we do?" It started coming up with a bunch more. And like you just realize you're like, "Wait a second here." There is this very weird like relationship between the human and the machine where you're just going back and forth, back and forth.

30:43 But then if you bring this back to the investor and the portfolio, I have a portfolio. I hear the bears yelling and screaming, and there are all kinds of things from interest rates, inflation to, you know, CapEx spending, whatever. But I talked to Dan Ives this week. He went to Korea. And I asked him, I said, "What would your message to the bears be?" And he said, "Go to Korea." He said, "Go go see the demand."

31:08 You're saying, "Look at what everyone is saying from the demand side." And so I just I'm separating the world out. Like there are people who are demand-driven, and that's what they're looking at, and they're like, "How how could we possibly be in a bubble? How could we possibly have this go to zero?" And then there's people who are like, "Did you see how much money Meta spent?" And you're like, "You kind of need the demand side of the equation to know whether this is a bubble or not, right?"

31:31 >> So I'm going to take a weird direction on on what you just said, and and and I don't know how much I I brought this up, but so let's use this proactive-reactive thing, okay? So here's a scenario that I'll equate to the relationship between AI and your life, and how do use it in a way, or similar way, to how people use their relationship with their therapist. >> Today's episode is brought to you by Abra. Bitcoin holders know the long game, but sometimes you want liquidity today or a way to pursue more Bitcoin over time. That's why Abra caught my attention. It offers two different ways to make your Bitcoin holdings work harder, depending on what your goals are. If you need dollars without selling your Bitcoin, then you can explore Bitcoin-backed loans with US dollars or USDC borrowing options. You can review the terms and compare rates at abra.com/pomp.

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34:04 Go check them out today. >> So, here's a scenario that I'll equate to the relationship between AI and your life, and how do you use it in a way, or similar way, to help people use the relationship with their therapist. Okay? So, but when I was very young, I read something, and if I read a quote in anything, and this is the reason why, when I was younger, I would read the great thinkers of the world. Was it a book?

34:36 it probably was an excerpt in a book. Like to give you an idea, Ralph Waldo Emerson, "Life is a succession of lessons which must be lived to be understood." That grabbed me and I've I've I've memorized it. I say it all the time. There are certain things like that that that grabbed me. But one of the things was "You can't love others until you love yourself." And I really thought about that. And that got me into Freud. It got me into why would I have any chip on my shoulder towards my parents? What what is that about? What does that mean? Why is it driving me? Cuz I'm a very driven person still to this age.

35:13 And a lot of it comes from my relationship with my father. And so I wanted to understand that because I wanted to love who I was at a young age. But I also wanted to make sure that I had no that chip was not anger. It was just gratitude. I wanted to turn it in there. So that led to me spending a lot of time with Sigmund Freud and and evolving into other of the great psychologist/psychiatrist.

35:38 And I still believe psychology is a really important part in the markets. Charlie Munger, Warren Buffett, I view them as market psychologists as as much as anything. I wanted to learn from those those types of people. and that gets me back to the relationship that I think people should be building with AI. And there's a very easy way to do what you said. I think with personal agents, with Muse. Right now, if people haven't done this, I want you whatever time of the week is is is free for you. 8:00 on on Friday morning or 4:00 on Friday afternoon.

36:12 Saturday morning at 6:00. Whatever time is free, have Muse at the end at that time every week ask you 10 questions about Are you happy with your life? Are you happy with your work? Are you happy with your diet? Are you happy with work? Are you happy like and just say it. Get it out. And then it can run off and the goal and you could say the goal is for you to hear what I'm saying and then come back with things that could make we can improve on this. Literally like a brainstorming session not with a therapist but with someone that understands your life. The more that you do this and get used to this, I think you're going to start to realize if it's your business like you're talking about and I have a business that I'm building and I'm very excited about where it can go.

36:58 I'm very excited to help people embrace this. I did something last weekend on or two last week on compounding and describing why I why a construction worker's son whose father didn't go to graduate high school got into the markets. Why did that happen? It will happen because my math brain was really good. My father taught me well on probabilities but it really happened for one reason. I got a book and on one page of the book it said if you double a penny every day it's $10.7 million and I went woah and the power of compounding is one of the coolest things in the world and compounding with AI is vital in your life now. If you believe it's a bubble by definition you're losing the compounding nature of both from an investment standpoint and a usage standpoint plain and simple. It is compounding at a pace never before seen in technology. So that power of compounding that I identified as a young kid when I was 16 years old that drove me into this who didn't know what he was going to do. He just knew he didn't want to do construction work. He wanted to be a compounder.

37:56 Then you learn Moore's law and what's Moore's law? Exponential compounding. It's the exact same thing as the penny double. In fact most books with technology. So if you're messing with your future of your kids because you believe AI is a bubble when it's an inevitability that it'll be part of our life and that it'll be disrupting the people who don't embrace it. I think the first step to leverage what you said is take AI and make it a life coach. Make it a life coach asking the same questions every week and it'll remind you did you do what we said last week?

38:26 And I won't go through the things I've already done that with, but in particular I get hyper focused on hey, I want to improve my health a little bit this week. What science will do this? Those types of things to me are really important for people to embrace. So I'm I'm going to leverage what you said and just say this is somewhat like therapy. >> I love this idea because it is human in the loop like recursive learning.

38:48 >> Yeah. >> Right? And >> compounding of every week going through it. The the routine of it. >> Correct. And I I do think that every every week I put together a company update. And in it I want to make sure that we talk about what we did in the past week, what we're going to do in the next week. Not that rocket science. But every morning I put priorities into Slack to a certain group of people and I basically say here's all the things I got to work on. And some days it's longer than others, but I put it all in there.

39:18 And what I have found is it's really helpful for me at the beginning of the day to write down here's the things I'm going to work on. But then at the end of the week I say, "Hey Grok, go through that thread and pull all the things that we got done this week." Magic. And you get week after week after week. And hey, for the month or the quarter or you know, whatever. And so like you're just feeding it information as you go.

39:38 Now, we're talking about corporate applications of this stuff or personal applications. There are two companies this week that came out that I want to talk about. First is Warp Sciences. >> Before you do this I just want to interject for for 30 seconds. The thread. I want to get people off of this thing cuz I think it freaks people out cuz then they have they have so many threads they're trying to go find it. Muse is built for memory.

40:02 It is the best model out there right now for memory. They spent the time to release it because it needs to have memory. I use Muse a ton right now because it remembers everything. My recipes and so I don't need to go back and find the thread. And even though I know you were just saying that cuz you can do the same thing with Grokbot, I just want to remind people if you've had frustrations with finding that thread because that's where the memory is, and that's where you've been doing that conversation, you don't need to do that with Muse. Go on.

40:29 >> So, I'll take it a step further, actually. if people want actionable things of what to do with their AI, let's say you're using Muse, and let's just say you've never used another AI ever before. It's your first kind of experience. As you're communicating with it, it's saving all that stuff in memory, but then all of a sudden Anthropic's Duet comes out, or dots, or Grokbot, or you know, whatever. One of the very simple things you can do is you can basically say to whatever AI you use, "Hey, I want to have a backup of your memory, and we can do it in Google Drive, we can do it in Notion, we can do it in an Obsidian, drove files is something that we built, right? Whatever.

41:07 I want, at the end of every day or every week, for you to take all of the new information that you've saved in your memory, and I simply want you to write it to the backup. And then, if something new comes out, you can say, "Hey, by the way, rather than me sit here and tell you all this new information that I previously told you, just reference that Notion document, that Google Drive, whatever." The people who have done this are like, "Now, I can actually use four or five of these different things cuz Muse is really good at A, B, and C. This other one's really good at this other thing, but they all have shared memory, and they're constantly feeding it back, and actually the memory becomes the really important part, right?"

41:39 >> Yep. >> And so, let's take it a step. Everyone has heard how good for you a daily journal is. So, let's just >> Life journal. >> What what what went on? now, there's a lot, I mean, writing down your thoughts, having a gratitude diary, which, I mean, I keep track of the things I'm grateful for. This started after 9/11. Like, I had to do a eulogy on my best friend, and my thought was I have to turn this into gratitude that I got to know this person at all, and the impact they had on my life.

42:04 >> Mhm. >> So, when people died, it became less about the tragedy, and more about focusing on the gratitude, and that's what helped me get through it in that way. So, if you go into Muse at the end of every day for a minute and just say, "This is what I'm grateful for today. Plus, this is what I want to remember that happened today." Then, in a month, if you go back and say, "Hey, will you go through the daily journal and just take the last 30 days, what have I said? Like, what's the progress of what's going on in my life?

42:32 What have I talked about repeatedly? Is there anything within inside the insights?" I'm just telling people that doing that type of stuff is going to become the norm. And being able to be happy, again, if you don't love yourself, >> You'll love the AI. >> love others. And this is where I really do believe that technology has made people not like themselves as much as they should. And I think there's a lot more anger in the world. And I do believe that as time goes on, technology will have, if you use it to help you, and help you all these things, your health, your finances, your job, but most importantly, if you become optimistic right now and empowered, you're ahead of 99% of the people as far as I'm concerned.

43:15 >> 100%. I I could not agree more. don't fall in love with the AI. It's my only warning. It's like, you know, smoking can cause cancer. Talking too much to the AI about personal feelings could make you fall in love. I don't know. I'm not speaking from personal experience. >> >> War Sciences So, Kevin Weil, amazing guy, great entrepreneur and operator. he was the former Chief Product Officer at Open AI. He has now started a company where he basically wants to be at the forefront of AI, biotech, healthcare, etc. You've been talking a lot about this. is one. And then two, War Hounds, Palmer Lucky, and this biotech company that's been working on animals. They're collaborating, and they are creating War Hounds, which is they are going to create genetically modified dogs to put on the battlefield. And Anduril is going to make them special gear.

44:12 So, you know, I it's pretty crazy. You're going to have genetically modified and amazing rabid war dogs that we then are going to put Anduril gear on, including lasers and visuals and packs. I mean, this is where we're going. >> Sharks with laser beams, is that what we're talking >> Listen, are you saying they're not real? Are you saying they're not real, Jordy? Come on. The I mean, but but if you start to look at some of these things, they all on one off, you're like, "Okay, AI and biotech, interesting."

44:44 It's a nice company. >> Mhm. >> War hounds. Oh, Palmer's being a little crazy. Whatever. But wait a second, when you zoom out and you look at these companies, like, we are in the economic boom. We are in the like, you know, there's the J-curve where you're you're negative, we're positive, baby. We we are up into the right aggressively in terms of ambition, technology innovation, the acceleration of these companies. War hounds, by the way, you want to try to guess the valuation coming out of the gate?

45:14 >> What is it? >> Billion. >> Yeah. >> The dogs are worth a billion. >> Hey. So, >> You want one of the genetically modified dogs? >> No, I'm going to give people two two good stories, okay? >> Jordy walking around Brooklyn with a genetically modified war dog. >> At the very end of the a16z podcast, probably the most important thing for people that I think everyone will raise their hand and say, "I want that immediately."

45:41 What they said was, this was not one of them, so they've obviously seen this or they've heard it from someone, is basically we'll soon be able to understand what our animals and pets are saying to us. Okay? Convert their language into what's happening. So, that's more of a rather than war dogs being able to understand your animals much more as far as I'm concerned for people out there cuz pets is a huge thing. I can tell you Williamsburg, it's it's very difficult to walk around Williamsburg and not see people's pets and what the pets do. So >> Imagine if you had a war dog, you you'd be the big dog of the block.

46:16 >> the second thing I want to get back to something I've written about and I think it's really important. So in this week of AI destruction a company made a new all-time high. Valuation is quickly rising the ranks especially relative to the other ones at the top of the list and that would be Eli Lilly. Come on, take your victory lap. No, no, no, no, it's not a victory lap yet until it's the biggest company in the United States of America which I will continue to say will happen within 5 years.

46:42 >> You think it'll be bigger than Nvidia, all these guys? >> Bigger than all of them. and there's a reason and this is the reason why. What can't be disrupted the next 5 years is helping people get better. There's a very slow process that has to get in before human beings are allowed to take and ingest pills. >> Mhm. >> Ozempic has helped a lot of people in the country based on the fact that people are not going to die from diabetes and all types of other elements or or things that it's had an impact in are growing. This week and I will talk a lot about Tune Lab. I did a subscriber video this week where I highlighted but here's the thing, Eli Lilly made a new all-time highs this week.

47:23 The S&P 1500 Life Sciences Biotech and Pharma index made new 52-week highs during a week where everything related to AI is going down. You know what the power of that is? The reason that Nvidia to me is seeing its multiple go down is because it will eventually be disrupted in some way. >> Mhm. >> In the next 5 years? I don't know, but the market's building in that it will be disrupted. If you ask me, they are the safest company to own. Do I think they will continue to go higher? It's one of my biggest longs. My biggest long as of right now is Eli Lilly. Then we've got Nvidia, then we've got Marvell. So, I have basically my AI trade >> Marvell, let's go. Speed it up.

48:07 >> So, what you have is the reason this is so important, we're getting to the point that people have to start to realize that when they worry about energy prices, like oil. Okay, energy of personal consumption is now less than 3%. Healthcare is 20 plus percent. It's about 22 to 23 depending on how you go through the measurement. It's non-cyclical. It's funded by both the government and insurance companies that you work for, meaning you get sick, you go, it's paid for.

48:37 So, that's why it's a non-cyclical part. So, it has the AI benefit of drug discovery, of everything associated. It already is a massive It is the number one thing people spend on in the country. Number one. Trans- home, way lower. How's autos, way lower. This was not the case 40 years ago. So, during the 1970s, when energy was a big deal, you go back and look at healthcare, it was nothing compared to your house and your home. So, heating it and driving it was very, very much related to energy in one part. It was also related to interest rates.

49:11 Healthcare doesn't have that. So, if you're worried about the AI build-out and the delays, get long the healthcare sector. And that's what you're starting to see is rotation into sectors that do not have cyclicality. Nvidia is still a cyclical company. Micron is still a cyclical company. If there's a delay, if there's an over-purchase of GPUs and we can't get the power, well, then at some point Nvidia is not going to sell as many chips because people won't store them anymore. Right now, there's a lot of places that have a lot of GPUs because they know they're going to need them in 5 years, 4 years, 3 years, 2 years.

49:41 If we can't get the power done, then they don't happen. So, I think on on the side of the breakthrough side, we are entering that period where where breakthroughs are going to start to become the place to invest because they're mispriced because pharmaceutical companies historically traded a very low multiple. And the reason is cuz they're safe and they don't have any cyclicality, meaning there's no growth. If these are becoming growth stocks, which Eli Lilly has been, and for people don't know this, you may not know this. Eli Lilly's been up 10 years in a row.

50:14 There's no tech companies that have done that. 10 years in a row, okay? So, none of the big tech companies. They were almost all of them were down in 2022. Not Eli Lilly. 10 years in a row. You know what its CAGR is over the 10 years? Over 30%. You've made a lot of money if you've just sat in Eli Lilly purely based on Ozempic, but I will >> 10-lane drone. >> I will say it again.

50:35 Eli Lilly's cash cow allows them to do things like Tune Lab. I've talked about Harvey. If people have now looked up Harvey and are like, "Oh my gosh, this is where all the lawyers are coming together." Go look at what Tune Lab is and just see that they now have 135 different companies that are putting in information on their IP into this supercomputer that Eli Lilly set up so that all of them can benefit and collaborate like a Manhattan-style project on the information to try and solve their We are going to solve a lot of different things going forward and this is going to be a big part of the next 5 years.

51:10 >> Ladies and gentlemen, that's what we call mic drop. That's it for today. Go check him out on YouTube. Just search Jordy Visser. His Sunday video is excellent. I highly recommend it. Go check out Silvia at silvia.com. Secure, private, accurate AI agent to better manage your finances. Jordy, thank you very much. See you guys next week.