Episode Summary
Executive Summary: In this episode, the host discusses Bitcoin toxicity at the Miami conference, Jeff Bezos' upcoming spaceflight, and Facebook's smartwatch plans. He critiques the toxic maximalism in the Bitcoin community, warns against Bezos' risky space venture, and analyzes the privacy war between Facebook and Apple. The episode also covers MicroStrategy's Bitcoin strategy and the potential implications of Apple's privacy features.
Main Topics: Bitcoin Toxicity and Cult-Like Behavior (Priority: 5/5): The host discusses the rise of toxic Bitcoin maximalism at the Miami conference, where attendees booed mentions of other cryptocurrencies and exhibited cult-like behavior. He draws parallels to religious zealotry and warns that this toxicity could drive people away from Bitcoin. Jeff Bezos' Spaceflight and Risk Assessment (Priority: 4/5): Jeff Bezos is going to space on July 20th, 2021. The host argues that the risk of death is non-zero and that Bezos, as world's richest man with dependents, should not take such a dangerous personal risk. He criticizes the decision as ego-driven and selfish. Facebook's Smartwatch and Privacy Concerns (Priority: 4/5): Facebook is building a smartwatch with a front camera for video calling and a rear camera for photos. The host argues that trusting Facebook with such a device is insane due to privacy concerns, especially given Apple's privacy push. He suggests Facebook should offer a subscription model instead. Apple's Privacy Features and Impact on Facebook (Priority: 3/5): Apple's privacy updates (iOS 14.5, iOS 15, email privacy, on-device Siri) are making it harder for apps to track users. The host says this will hurt Facebook more than Google because Facebook relies on psychographic data. Apple's moves give governments high ground to regulate tracking. MicroStrategy's Bitcoin Strategy and Risks (Priority: 3/5): MicroStrategy under Michael Saylor has converted its treasury to Bitcoin and issued bonds to buy more. The host critiques the advice to mortgage houses for Bitcoin and warns of Bitcoin Zero risk. He notes MicroStrategy's core business is declining and questions its value as a Bitcoin proxy.
Key Arguments: Bitcoin toxic maximalism is a cult-like behavior that repels people and is a serious risk for Bitcoin's future. The conference's 'Bitcoin-only' rule and booing of other crypto mentions mirror religious dogma. Jeff Bezos' spaceflight is too risky given his importance and dependents. The host estimates a 1-in-500 to 1-in-1000 chance of death, and argues Bezos should wait until the technology is proven with hundreds of safe missions. Facebook's smartwatch with cameras and health tracking is a privacy disaster waiting to happen. Apple's privacy features are superior and will force Facebook to adapt or lose user trust. Michael Saylor's advice to 'mortgage your house' for Bitcoin is dangerous and could lead to financial ruin if Bitcoin crashes. Diversification is key for sleep-at-night investing. Apple's privacy moves (app tracking transparency, email privacy, on-device Siri) are strategic wins that will make it harder for Facebook to target ads. Facebook should consider a subscription model instead of hardware.
Data Points: Bitcoin price at time of clip: $56,000 - Michael Saylor's clip from March 2021 recommended buying Bitcoin at that price. Bitcoin price current: ~$36,000 - Bitcoin dipped to $31,000 and recovered to mid-to-high $30,000 at time of recording. MicroStrategy Bitcoin holdings: 92,079 Bitcoins - Value of holdings approximately $3.5 billion, according to Barron's (June 7, 2021). MicroStrategy market cap: $4.8 billion - Subtracting Bitcoin holdings implies core business worth ~$1.3 billion, similar to pre-Bitcoin market cap of $1 billion. Number of people who have gone to space: ~600 - Approximately 30 deaths, with 14 from space shuttle; host estimates ~15 deaths out of 600 (2.5%). Blue Origin funding: $3.5 billion - Privately funded by Bezos, with 3,400 employees vs SpaceX's 8,000-9,000. SpaceX missions: 120 - Versus Blue Origin's ~20 missions. Facebook smartwatch price target: $400 - Plans to release next summer (2022) with front and rear cameras.
Pivotal Quotes: "If you're against Bitcoin toxicity, you're against Bitcoin. And if you're against Bitcoin, you're against freedom. Period." — Nico Ziem (BitVault Mining CEO): Spoken at Bitcoin 2021 Miami conference, representing extreme toxic maximalism that the host criticizes. "Before we begin, did I hear someone in that prior panel say: if you're against toxic maximalism, you are against Bitcoin and you're against freedom? Yeah, that's some bullshit." — Eric Voorhees (Shapeshift.io CEO): Eric Voorhees called out the toxic statement and was booed by the audience. "Take all your money, buy Bitcoin, figure out how to borrow more money to buy more Bitcoin. ... Go mortgage your house and buy Bitcoin with it." — Michael Saylor (MicroStrategy CEO): From a March 2021 interview, advocating extreme allocation to Bitcoin. Host warns this could lead to financial ruin if Bitcoin crashes.
Implications: Bitcoin's growing toxic maximalism may alienate new adopters and invite regulation. Bezos' spaceflight sets a risky precedent for billionaires. Apple's privacy features will significantly disrupt Facebook's ad business, likely accelerating Facebook's hardware push and potentially forcing a subscription model. Investors should diversify and avoid extreme concentration in any single asset.
About This Week in Startups
Jason Calacanis covers startups, tech, markets, media, and all the hottest topics in business and technology. He also interviews the world’s greatest founders, operators, investors, and innovators.