00:11:16 · Molly O'Shea
[00:11:16] S1: So why do you think America and the newer generations are falling to socialism?
00:11:25 · Brian Armstrong
[00:11:25] S0: I think that every generation has to kinda learn this from first principles if they haven't been exposed to it. So, yeah, I when I talk to people who left, socialist countries, I mean, for them, it's like the most obvious thing in the world because they actually lived through it. Right? I think if you if you look at, like let's just think about some of the lower economic freedom countries. Right? North Korea, Cuba, formerly Venezuela. Right? Maybe that's changing now. These are not places where you would wanna go. Right? You know, people, in general, are much worse off, and they have worse outcomes across the board, whether you look at health care, education, or, GDP per capita or anything. So, you know, look, it's a nuanced debate. Think, you know, there's a whole argument about suicidal empathy. Right? If America's been so prosperous for so long, does it create some sense of guilt, and people now wanna give back or they wanna, you know, redistribute? So it's an interesting complex, societal phenomenon, but I've seen that if if, free market capitalism is kind of this contrarian idea. Right? If you look at it on the face, you'd say, Oh, well, it's unequal outcomes. That's not good. But it's the least bad outcome, is what someone might say, because if you take away that incentive and freedom for people to go build innovative things and try new ideas, you have a society that stagnates, and you have people who go into positions of power that are they become corrupted. Right? And and and so you need a free market to, like, root out bad ideas and celebrate good ideas for everyone to benefit.
00:13:01 · Molly O'Shea
[00:13:01] S1: Yeah. It was actually, like, it was so funny talking to Dave Mazzuki about this because, like, a little bit controversial, but, yeah, most of Roblox's users are very they're young. They're 25. But guess what? Everybody who makes a game on Roblox and the games that they play, and they've seen this over and over again, when you're building out a new game and, I don't know, the biggest use cases, they all come back to capitalism. It's like these kids are building and playing these games of being an entrepreneur. Mhmm. And they don't realize that, and then they're protesting, and then they're supporting socialism, which I think is the biggest paradox. But not to beat on that too much, I just, like, am always really surprised because it's like like, there's so much to do with, like, social media and everything, but then in the reality, it's like, no. They're they're actually just part of the economy, and it all comes back to capitalism. Mhmm. But in terms of Argentina, what are your plans? Mean, thank God Teal's blessing.
00:14:05 · Brian Armstrong
[00:14:05] S0: Well, okay, so Coinbase is expanding to different countries all over the world, and actually the Base app, which is our self custodial wallet, has an easier time spreading You can launch that in hundreds of countries around the world, because if you're not taking possession of customer funds, it's not treated as a regulated financial service business. So the base app is our way to get to all these countries around the world, and then we have 10 markets or so where we go really deep with our custodial regulated financial service But, yeah, a couple mean, maybe some interesting stories from Argentina. You know, I remember that people would, like, try to ride the bus, and they I guess the buses would only take these coins. Right? And because there was so much hyperinflation, you'd have to come with a fistful of these coins. And, actually, coins became in almost rare it was rare to get coins. So if you went to go spend with paper money and they owed you some coins and change, they'd be like, ah, I'll just give you an extra peso back or something because they didn't didn't wanna give up their coins. Right? I maybe, like, the more pernicious example is that I'd say in Argentine culture, like, this was at least my impression as an outsider coming in, I'd say people were quite pessimistic about the future. Peter Thiel had this great two by two diagram about, are you optimistic or pessimistic? Are you deterministic or nondeterministic about the future? People in Argentina of feel like it could all be gone tomorrow. The future is going to be worse. So just live every day like it's your last. Have great food and wine. Sell you know, spend your whole paycheck. You know, have have a nice dinner with your family, because that's been the history of the country is, like, periodically just their money gets eroded and taken away. And so what is the consequence of that? It's like everybody in society kind of just they don't plan long term to try to build something for the future because it could all be gone tomorrow. Right? So to do a ten, twenty year exercise to go build a world changing company like Coinbase or, you know, what Elon did with SpaceX, That's just not gonna happen in Argentina because, I don't know, maybe the next election, the government will just seize seize all of your assets. And, like, what was the point of even starting that project?
00:16:15 · Brian Armstrong, Molly O'Shea
You're gonna go build it in another country. So it's a it has, like you know, I'd say high inflation actually really harms the poorest people in society the most too. Right? Because they're the ones who are holding all their wealth in cash. The wealthiest people in Argentina, they can they can get a brokerage account open in in, you know, in The US somehow and hold real estate or these inflation Bitcoin, these are inflation resistant assets. So, yeah, it's it really changes the entire fabric of society to have high inflation and low economic freedom in a negative way. [00:16:47] S1: Sorcery is brought to you by Brex, the financial stack trusted by more than 30,000 companies, including one in three venture backed startups in The US. Nearly 40% of startups fail because they run out of cash. REX is literally built to help founders avoid that. Unlike traditional banks that let your money sit idle, chipping away at it with fees, REX is designed to help you spend smarter and move faster. Their all in one solution combines checking, treasury, and FDIC protection into one powerful account. You can send and receive money globally at lightning speeds, get 20 times the standard FDIC coverage through their partner banks, and even high yield from day one. With same day and even same hour liquidity, access your funds anytime. Companies like Scale AI, DoorDash, Service Titan, HIMS, Anthropic, Flexport, Robinhood and Plaid trust and use Brex.
00:16:47 · Molly O'Shea, S2
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