Zap Solutions CEO: Why I Stopped Using USD

02.06.2024

On 29 May 2024, Daniela Cambone hosted Jack Mallers, CEO of Bitcoin startup Zap Solutions, Inc., on her show. Mallers, known for his outspoken advocacy for Bitcoin and its underlying technology, shared his perspective on dedollarization and why he transitioned to using Bitcoin exclusively in his daily transactions. Here’s a detailed look at what Mallers discussed during the interview.

The Origins of Dedollarization

Mallers began by addressing the concept of dedollarization, which he traces back to the financial crisis of 2008-2009. According to Mallers, this period marked a significant turning point as the world began to lose faith in the U.S. dollar. He pointed out that the global financial system revealed its vulnerabilities during this crisis, leading to a realization that the U.S. dollar, as the world’s reserve currency, was not as infallible as previously thought:

“Dedollarization started in ’08-’09 because the world realized they don’t care,” Mallers explained, highlighting a perceived neglect by financial authorities to maintain the dollar’s value and stability.

Transition to Bitcoin

In a notable move, Mallers stopped using the U.S. dollar in his daily transactions and switched to Bitcoin in January 2024. He described his decision as a strategic choice driven by the ongoing debasement of fiat currencies. Mallers emphasized that he wanted to avoid holding a currency that continually loses value due to inflation and other economic policies.

“They’re lending me a currency that’s constantly being debased. So I get to spend that currency without actually having to own it,” Mallers said, underscoring his strategy of utilizing Bitcoin for its perceived stability and appreciation potential.

By stating that he gets to spend the dollar without owning it, Mallers refers to using the dollar only as a medium of exchange when necessary, without holding it as a store of value. He may convert his Bitcoin to dollars only at the point of transaction to avoid holding dollars and being affected by its depreciation.

The Philosophy Behind Money

Mallers delved into his philosophical views on money, describing it as a representation of human time and energy. He argued that money should ideally preserve its value over time, allowing individuals to save or exchange their hard-earned resources without fear of devaluation.

“Money is a representation of our time and energy, which can be saved or exchanged,” Mallers stated, advocating for a financial system where the medium of exchange holds its value.

Economic Concerns and Bitcoin’s Role

Mallers expressed deep concerns about the current global economic landscape, particularly the high debt-to-GDP ratios seen in many countries. He argued that governments have borrowed extensively against future growth, leading to unsustainable economic practices.

“The global debt to GDP ratio indicates governments have borrowed extensively from our future without growth to repay it, leaving a loss that must be realized somewhere,” Mallers asserted, highlighting the potential economic crises looming on the horizon.

In this context, Mallers sees Bitcoin as a crucial tool for preserving wealth and financial stability. He believes that Bitcoin’s decentralized nature and finite supply make it an ideal hedge against inflation and economic instability.

The Future of Finance

Mallers concluded by sharing his vision for the future of finance, where Bitcoin plays a central role. He emphasized that adopting Bitcoin could lead to a more stable and fair financial system, free from the manipulations and debasement seen with traditional fiat currencies.

“Tune in to understand Mallers’ perspective on the financial future and why Bitcoin is central to his strategy,” Cambone invited viewers, encapsulating the essence of Mallers’ argument for Bitcoin as a foundational asset for the future.

Mallers’ Price Target for Bitcoin

In the interview, Jack Mallers passionately outlined his vision for Bitcoin as the ultimate safe haven asset. He argued that continuous money printing by governments will inevitably debase fiat currencies, prompting investors to seek refuge in Bitcoin. According to Mallers, this shift could drive Bitcoin’s price to unprecedented heights.

“Because the money printing will debase the currency, investors will start piling into Bitcoin as a safe store of value, sending its price soaring to as high as $1 million by the end of November 2025.”

Mallers expressed skepticism about the willingness of politicians, whether Trump, Biden, or RFK, to address the underlying economic issues. He suggested that politicians are more likely to offer short-term solutions that involve significant spending rather than implementing painful but necessary economic reforms.

“I don’t think Trump or Biden or RFK is going to get up and say, ‘I’m going to take away your healthcare. I’m going to inflate everything around you. I’m going to crash everything you know. All your bank deposits are gone. We’re going to go through the Great Depression because it’s in the best interest of America.’ That’s not what politicians do. I think politicians are going to say, ‘Here’s a bunch of free stuff and this is why you should elect me.’ And they’re going to have to fill the hole of this deficit…”

Mallers provided a bold price prediction for Bitcoin, highlighting a range that reflects both the potential for substantial growth and the inherent uncertainties in the financial system.

“I’m quoted saying $250,000 to $1 million [for a Bitcoin cycle top prediction]. That’s my range, and the range is wide. But you’re asking me to price something in a piece of paper that politicians, who don’t even know how the system works, are actively debasing. So, I think it trivially gets to $250,000. I think $1 million is possible within the next 18 months for that reason.”