#1579 Jordi Visser | Why Bitcoin Will EXPLODE During The AI Era
🎯 Summary
Podcast Episode Summary: #1579 Jordi Visser | Why Bitcoin Will EXPLODE During The AI Era
This 50-minute episode features financial veteran Jordy Visser discussing the confluence of macroeconomic policy, the re-industrialization of the US economy driven by AI, and the resulting implications for asset allocation, with a strong underlying theme suggesting Bitcoin will benefit significantly from these shifts.
1. Focus Area: Macroeconomics, US Fiscal/Monetary Policy (Federal Reserve), US Re-industrialization (AI, Energy, Manufacturing), Housing Market Dynamics, and Investment Strategy.
2. Key Technical Insights:
- PMI as a Leading Indicator: The ISM Purchasing Managers’ Index (PMI) is crucial as it has a high correlation with S&P 500 earnings; its sustained weakness since 2022 (except for brief bumps) signals a lack of manufacturing growth, which is now poised to change due to AI-driven hardware needs.
- AI Embodiment Requires Hardware: The current AI wave is moving from pure software (LLMs) to the “embodiment side”—physical hardware like drones, humanoid robots, and crucially, the massive data centers and power infrastructure required to run them.
- Energy Constraint on AI Growth: The primary constraint on future AI growth is not semiconductors, but electricity supply, with estimates suggesting a need for 90 GW of additional power by 2030, creating massive investment opportunities in power generation and grid stability.
3. Market/Investment Angle:
- Shift from Software to Industrialization: Investors must pivot focus from the last 18 years of software dominance (Mag 7) toward the coming decade of re-industrialization, benefiting sectors like energy, materials, mining, and power infrastructure.
- Labor Shortages Favor Automation: Significant labor shortages in blue-collar, manufacturing, and energy sectors mean that robotics and automation are not primarily job destroyers but necessary gap-fillers for jobs humans are increasingly unwilling or unable to do.
- Fiscal Dominance and Rates: The Federal Reserve’s independence is effectively over due to massive US debt and deficits. The Fed is now incentivized to lower rates to manage the government’s skyrocketing interest expense, supporting asset prices.
4. Notable Companies/People:
- Jordy Visser & Anthony Pompliano: Hosts/guests driving the analysis.
- Bill Poultney: Mentioned in context of administration focus on unlocking the housing market.
- MP Materials: Highlighted as a key US rare earth mineral company receiving recent deals from the DOD and Apple, underscoring geopolitical supply chain risks.
- Eric Schmidt: Cited for stating that electricity, not chips, is the limiting factor for AI growth.
- Jensen Huang (Nvidia CEO): Quoted as advising students to study physics over coding, signaling the shift toward physical engineering and industrial application.
5. Regulatory/Policy Discussion:
- Capital Gains Tax Elimination: Discussion centered on the possibility of President Trump eliminating capital gains tax, particularly on housing, as a massive stimulus to unlock transactions for homeowners locked into low mortgage rates.
- Fed Transparency Lawsuit: A lawsuit (Azoria/Fishback) challenges the Fed’s practice of conducting official FOMC business behind closed doors, arguing it violates federal sunshine laws, adding to the pressure on the central bank.
- Fiscal Dominance: The massive US debt load forces the Fed to prioritize lower rates to prevent a fiscal spiral, confirming the end of true monetary independence.
6. Future Implications: The future points toward a significant, government-supported re-industrialization cycle driven by the physical demands of AI (data centers, power, materials). This will create inflationary pressures in physical commodities and energy, while simultaneously requiring a new generation of engineers focused on physics and industrial application rather than purely software coding. The need for energy and materials will be a major economic driver, potentially boosting assets tied to these sectors, including Bitcoin (as a hard asset hedge against fiscal expansion).
7. Target Audience: Professionals in finance, asset management, institutional investors, and technology strategists interested in the intersection of macro policy, industrial technology trends, and long-term portfolio positioning.
🏢 Companies Mentioned
đź’¬ Key Insights
"Most of the great companies of the future will never go public. And so this is where tokenization becomes important. It's what Vlad at Robinhood is focused on. It's what everyone is going. Understanding the new capital structure going forward, to me, is really important."
"I think that's going to happen in a world of AI is that over the next decade, and that's why I talked about the 2030s are going to be a disruption to all public companies, the S&P 500 companies, they will be disrupted."
"You now are starting to see JP Morgan talk about, well, maybe you should take that nice little Bitcoin you have and put it here, and we'll lend against it or we'll custody it. Like it just feels like Bitcoin has now arrived. It's the main show on Wall Street, Wall Street's full, undivided attention is on Bitcoin..."
"it's all about dollar debasement, and dollar debasement is going to inflate Bitcoin and gold's prices at a faster rate than it inflates the earnings of these companies."
"This is an important part, I think, for the way people view markets and in particular the dollar and crypto, because this gets into a view of independence with the central bank, then we really need an independent thing to invest in that isn't kind of dealt with this..."
"Central bank independence is a global, developed market thing. It's considered banana republic stuff when it's outside of that where the government just says what the central bank policy is going to be."