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Economics, Finance, Crypto and Retirement podcast interested in exposing: the false left-right paradigm, central bank manipulation, media double standards, lying politicians and Fake News.
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Thursday Dec 28, 2017
Thursday Dec 28, 2017
Full video here:https://www.youtube.com/watch?v=8vWYfdj5cVI
Bitcoin v bitcoin cash
Transcript:
[00:00:42] So this is the libertarian adviser podcast. Right now we're going to talk about bitcoin vers bitcoin cash has been a hot subject the news lately. Yesterday a coin base the largest U.S. exchange decided to add Peercoin cash to their lineups. Right now you can get a Bitcoin bitcoin cash Ethereum and lite coins through coin base which is the largest U.S. exchange. Now that news, was at dinner yesterday talking about bitcoin cash with one of my friends and apparently that's right when it got added yesterday because it is uploaded to the roof it went up like 70 80 percent in one day. So it's just bonkers but a lot of people have been asking me what is the difference between Bitcoin and Bitcoin cash to know. Is bitcoin cash to some sort of people that clone bitcoin and then hijacked it and is trying to use that brand name? or what's really going on here. So what I want to do is I want to dispel some of the myths and some of the rumors about what's really going on and it's probably a little bit hard to see at all especially if you guys are listening to me right now be impossible to see but I have a little white board and what I have on the white board is something to represent what bitcoin is and then something another picture that's going to represent what bitcoin cashes. The first point I'm going to do is I want to go back to the fork that happened on August 1st and basically this worked a lot like a stock exchange.
[00:01:57] So think of it this way if you had one bitcoin prior to August 1st you would then have another. You then have one bitcoin cash. When when things forks if you had one Bitcoin now you'd have one bitcoin cash and one bitcoin. So not too much no risk in terms of you know one exploding and the other one dying. You mean you're missing the boat and that you know as long as you sell you wouldn't miss the boat and anything you'd have bought for them. So what bitcoin attempted to do is they wanted to do something called segregated witness and actually by attempted to do is say they've already done this. And segregated witness does is it takes some of the data which was the signature in this case which is what they called the witness and they put it on a different block. So right now that signature would take about I think is about 60 percent of the overall data is in that signature. So it's really when you only have one megabit megabyte block you're going to need. And now that the fact that bitcoin has really exploded in popularity it's creating a problem because imagine that you've got a glass and you know all this in your glasses over falling over overflowing. That's sort of like the bitcoin transactions right now. They're overflowing. They can't.
[00:03:08] There's hundreds of thousands of transactions that are unconfirmed and how they go about confirming these transactions you know hey if you're willing to pay 20 bucks then maybe you get in and if you're willing to pay you know two dollars maybe you're not going to get it. And I just checked this a little while ago and let's check in right now. But the bitcoin average fee was some around thirty two dollars which is absolutely insane because you know it used to be like more like 30 cents or even three dollars. I thought that was high. But now we're at 32 dollars is absolutely insane. So a bitcoin did is they really want to lay the groundwork for something called the lightning that Rick when Segway would allow them to lay the groundwork for lightning that work. So
[00:03:44] the reason why Bitcoin so there is to back up a second again there is two basic main ways to scale bitcoin. One was to do this. Excuse my language is cluster fuck. Known as segregated witness and letting that work and the other way was just to say hey we've got you know we're only dealing with one megabyte blocks. All we're going to do is just increase the block size to eight megabytes. Problem solved. So in order to do any of these changes what you have to do is you have to get consensus from 95 percent of all the parties involved. So you know the miners the nodes you know even you know the users would then obviously be able to vote with their wallets and that's what we kind of saw a little bit yesterday. So it's very very hard to get 95 percent consensus. I mean if you think that you know when I started getting into and basically just covering crypto moving away from politics I thought that OK great movie for politics I'm going to do things Blish anymore wrong because there is plenty of politics that are in Bitcoin. And so the people you know they've call it big blockers and I'm saying this in quotes right now. So on the one hand you have the people that wanted to make the buck bigger on the other camps you had the people that want to do this segregated witness. So the people that want to make the block bigger they realize you know we're never going to get 95 percent consensus.
[00:04:59] We know that this other way that they're going to do it is not going to work or it's certainly not going to work in the way that they say it's going to work. So we're going to go and we're going to pick coin and create bitcoin cash. So what they're doing is they took a one megabit one megabyte block and simply made it eight megabytes. The people over over a bitcoin Segway or what now is referred to as Bitcoin Core. What you would also refer to as Bitcoin what they did is they took that segregate they took that data put it on a separate block completely changing the entire landscape an entire architecture of what bitcoin is where you know for all intensive purposes bitcoin is dead. There is the bitcoin Satoshi Nakamoto rolled out in 2009 is not the bitcoin that we have now because by having these extended blocks it's making way for this lightning that work. And with the lighting that we're going to do is in essence create these these hubs. So instead of you know me trading with you it's saying OK well you know if you and I trade you know with each other quite frequently then we can do is open up this you know this basically network where you know we only have to pay one transaction fee and then when we eventually close things out then we can settle up so let's say you know you know I'm like or I'm Tim my brother's Mike. So you know you know we buy the drinks and go outside.
[00:06:19] No restaurants together and so instead of you know so maybe you know we put up you know to like coins so today you know that 600 bucks and so you know I take them out for a night and you know he owes me let's say 100 bucks then he can send over the appropriate coin then you know maybe he takes me to a sporting event and then I send over back the appropriate coin. And so all the while we're not having to actually spend that much and sorry I kind of jumped on the White coin. But this is getting into bitcoin is going with all this. And so what they're trying to do is they're trying to say you know we create these hubs then what's going to happen is you know you're going to cut down on transaction fees because you're only going to have to pay the fee when you settle things up. Now what if I then want to then you know then send them one over to Bob. Well I don't have a connection with Bob. Tell them what they're saying. Oh Mike has a connection with Bob then through you know through this you know network of basically it gets its super super complicated how they're trying to do this but what the groundwork that they're laying out for is they're going to have the Hub be the banks. It's so obvious that it's not even funny. So Sarah to witness allows for all the KYC know your customer laws for all the anti money laundering laws.
[00:07:30] Not necessarily a bad thing at certain levels but when it comes to peer to peer transactions if you're having to go through a bank you're no longer in a peer to peer transaction and if you look at the actual Satoshi Nakamoto is white paper I believe it was called Bitcoin peer to peer electronic cash or it was something along the lines but it was peer to peer. And so if you're having lighting that work you're completely getting rid of the peer to peer. And so what I see is that the big banks have completely come in to hijack bitcoin and you're thinking oh yeah that sounds kind of crazy. I mean if they're going to hijack Bitcoin you know would they have to do they'd have to take over the core development and for some of you you're probably thinking core development you know Bitcoin has a core development. They do they have a core development and it's really kind of secretive of you know you know all the people that are in it. You know how they get together. I mean it's bad enough we have a Federal Reserve Board let alone that now we have a now that we have this other network. I've got my wife call me in and I just told her not to call me. So I was doing this but anyways with bitcoin with this lighting that work is I just absolutely see it laying the groundwork that put the banks and between you and bitcoin and how it got hijacked is through the court development because the core development team if you really look at it because like me I follow the money. That's what I do. And so the money comes from the fact that you had a company called AXA. So they say the largest insurance conglomerate in the world and what they did is they made a 55 million dollar investment I believe somewhere around run run about there to this company.
[00:09:05] BLOCK stream block stream were the ones who were funding all of the core developers. In the beginning you had a lot of people who are more of the hardcore libertarians people that were philosophically very you know more of like a leave me alone. You know you know almost an anarcho capitalist was the original coders. Now you've got a lot of money introduced and you've got people that are basically just shills for the big banks and so I didn't even tell you the craziest part of this story yet because the story gets really crazy because AXA the head of AXA up until recently was Henri de Castries headed to Castries also was the chairman of the builder Brigg steering committee on two separate occasions so you know when it comes you know conspiracy theories. I mean you don't have to go too far to see the fact that basically the Build-A-Bear group has its hands inside of Bitcoin. Now maybe that's me just being a little bit too paranoid or conspiratorial but you know if bitcoin was meant to supplant the banks if bitcoin was meant to be a way where I can send something of value to you and nobody can stop that. Well now if I have to go through a lightning network well then now there's someone that could stop me. And then we're right back to basically a bank so basically to replace the World Bank or a hub with a bank and that's what we're going to get. I'm not going to and I'm not saying that you know there are some benefits to letting network like so in the example where I'm trading with my brother yeah that in that sense I can see with IP could be pretty useful.
[00:10:33] But once you start getting into you know all of these you know let's say fourth fifth sixth seventh generations down the line of you know you know you know Mike knows Bob who knows Joe who knows Fred who knows Tom and so we're going through all these you know rapid gyrations to get the money back between Tim and Mike. It's just absolutely crazy. So when you look at you know who forked who I'm really of the opinion that an August 1st it was really more along the lines of Bitcoin Core. You know bitcoin BTC that they're the ones who actually you know really staged a coup. But this is stuff that's really inside baseball. It's really over the head of probably 99 percent of the public is probably over the head of most people even have bitcoin right now and so you see these people who they called themselves big Bitcoin maximalists where it's so you know bitcoin or die Bitcoin was first Bitcoin has to be the best.
[00:11:25] Well bitcoin got hijacked by the Bilborough group and that's very very obvious. And everything they're trying to do right now is to shoehorn Bitcoin into the legacy banking system.
[00:11:35] So you see a lot of personal attacks on people in this movement. So one of the most prominent people in this movement would be Roger veer Roger veer is also known as Bitcoin Jesus. And he also as you know he has bitcoin dot com bitcoin dot org. All of us were a first investor in bitcoin and really he probably has the most to lose of anybody over this because if you were to go along to get along if he were to embrace everything they're doing over it bitcoin he could probably even enjoy even a bigger payday. He could you know he's got a lot riding on this. When I see a guy like him you know really stake his net worth stake his claim stake his name and everything else to then go ahead and do bitcoin cash. A lot of people are looking at that and saying you know he's you know he's selfish. How dare he. No clones bitcoin and rips it off and his brand mark infringement and they don't know this whole other story that's behind it. And when you really get down to brass tacks of what you'd call it and think about you know the usability of bitcoin and after the fork you know let's see where the rubber meets the road you guys implemented this Sagarin a witness to bring down fees. Where are the fees today. There are 32 dollars almost to drop a bomb there. But there are 32 dollars whereas the fees for bitcoin cash like 27 cents.
[00:12:53] So you guys implemented this whole cluster you know what's over here at bitcoin and it actually raise the raise the fees of Bitcoin and Bitcoin cash. What they did actually lowered the price of bitcoin. So right now you know it's either put up or shut up right now for the bitcoin people or bitcoin core people because their solution right now has not worked. And so one of my theories is that a lot of people who buy have bought bitcoin recently they've never actually traded it with anybody they've never actually transacted and never purchased anything with it. And so I did a little experiment and went over to some business partners and said hey you know you guys have some crypto. Have you actually sent it to anybody. And they're like No no words on Coinbase or word on cracking or whatever. And so I did a little experiment where I sent a dollar of like coin to one of my buddies that I work with and you know got the transaction super quickly and you know it costs like a quarter to do. And there's other wallets for would probably even cost less than that. Now that dollar I sent him within like three days turned into like three dollars so you know maybe I should have waited three three days. But you know who cares. But yeah. So I think it was right when the price went from a hundred to like 330 within the span of like four or five days just absolutely nuts.
[00:14:04] But where I'm getting at all this is that Roger veer had a lot to lose by jumping off the bitcoin bandwagon that he was basically you know customer number one two from an investment standpoint and then now see all the people Royd is bastardizing his name and people saying you know oh he's a felon and he's not allowed in America. Well I mean I saw him like two or three Martin I'm not friends with him or anything but you know I did see him speak a couple of months ago at the nexus Earth conference so you know the fact that he's banned from America I mean I just unless that's recent. You know I was at one point two feet away from him a couple of months ago. So I don't really think that is the case. And then his felony was you know he was speaking out against the government and then they caught him in like 95 selling firecrackers on the Internet and he was basically the only person ever go to jail for that. And so you know people want to start using you know this guilt by association technique. They really better be careful because it's the same guilt by association technique that everybody else is using against bitcoins saying you know Bitcoin is the money of terrorists bitcoins that money of drug launders bitcoins the money of drug dealers. You know pedophiles all this other stuff.
[00:15:11] So now you're trying to say oh bitcoin cash it's the you know pedophiles use bitcoin cash you and this is in regards to Rick Voth Falke veneer of the Icelandic pirate party of comments that he made that were completely taken out of context by the fake news particularly Business Insider in this case and really what he said is the headline was you know child porn should be legal and all he was saying is he goes Well there's laws in Iceland where let's say I caught somebody engaged and act with a child and if I wanted to get some sort of basically proof of it and maybe you know take it to a second you know video of it as proof to give to authorities under Icelandic law he couldn't get into base to go to jail for that. And so now people are spinning this as you know big encash people want you know you know children to be used you know in sex slavery and all this other stuff and all this other crap that you know really should be way beyond what the crowd is going through or the crypto world is going through. And so I'm not really met married to any one of these crypto currencies. There's 4300 plus of them now and. And again you know what I want is I want transactions where it can't be stopped. I want low transaction fees. You know I'd like to have it anonymous. And right now bitcoin is not anonymous. It's not low transaction fees. It's not even quick. I mean it could take you know like a day to send somebody some money. So I don't know. So what they're trying to do is create this massive problem. So it's to hide Galian dialectic of problem reaction solution. So they've created the problem. The reaction is we need to do something about this which they do. And so the solution is up we've got the lighting that work and the lighting that work will be the banks. It's very very obvious that. And mean in the banks you don't want to act like they're against crypto guys like Jamie Dimon or Jamie deamon.
[00:16:57] I like to call him he likes to act like he is against crypto currencies but Ethereum there in the Ethereum alliance where they have like things like 170 something patents. BLOCK chain technology. So on one hand Jamie Diamond's bad mouth thing. BLOCK chain on the other hand his company has 170 patents on it so maybe that's a way to you know maybe stop future competition by saying hey we've got the patent on this then we're going to shut you guys down. But you know there are many people who are maybe putting satellites up into space out of Earth's atmosphere that's out of any jurisdiction that they don't give a shit about your pen. It's going to unless you're going to take a laser beam to start shooting them down you're not going to be able to stop this stuff. And so you know what I see is that the banks are definitely trying to insert themselves into this equation and really it be the dream for the government and standpoint and it would also be it would also in some regards be sort of like the mark of the beast type network because now you know all of your money through bitcoin is is able to be tracked and you don't necessarily know whose wallet that's on. But you know I think there's companies like dark data services. Another one that starts things like rivets or something that certain services are and there are companies that can do this forensic work. They can go examine IP addresses there's you know if you're on base obviously your money is tracked at that point.
[00:18:21] And so I'm not you know over here encouraging anybody does anything illegal or tries hiding profits. But you know there is ways where you know a lot of people who think they're being anonymous right now are not being anonymous and a lot of what was sold to the bitcoin community particularly the libertarian community back in the beginning which got this up and running. You know a lot of it ended up being lies a lot of it being smoke and mirrors a lot of that was more of a sales pitch of well we didn't really know exactly how it was working but some really smart people told us that worked this way. They told us that it was anonymous. Well it's pseudo anonymous. And then if you look up the you know the word pseudo in the dictionary it means not so Bitcoin is not anonymous there's other ones I think like CZI cash Manero dash and some other ones that are going to be more anonymous than bitcoin. And you know when it comes to the future you know we're going to have two futures and those futures are going to be you're going to have digital currency. It's going to be do you on digital currency that's controlled. MARK OF THE BEAST track trace surveiled run by the government or do you want a digital currency like you know let's say Manero. And in this case where you know it's anonymous can't be tracked can't be traced can't be stopped because I mean imagine the political dissidents. Imagine if Hillary got in there. I mean I'd probably be in a FEMA camp right now. But imagine if Hillary got in there and we had a bitcoin like system and all of a sudden Hillary say nope no temple.
[00:19:43] He's over there you know causing a ruckus you know exposing us. We're going to show off his money. And that's that's really the danger of piracy all this stuff going. And so I see a lot of people who are very uninformed on the subject who are then literally going to be leading us marching us into this Mark. Mark the system and that's not to discourage you from getting into cryptos because there are a lot of very very fine cryptos. And right now I'm in the midst of creating a company built around crypto. And I have crypto in the name and I have the I have the domain name saved. I could have made it bitcoin but I'm not you know I really don't have a huge dog in this fight. I don't is going to use what's better I'm going to invest in the philosophy I'm going to invest in the ones where you know basically the different freedom coins and I don't see Bitcoin as being that. I think it started. I'm glad it's here. I'm glad Satoshi Nakamoto whoever you know he or they or she or whatever says transgendered person made this up that. Glad they did it but it did get hijacked by the court development. It got hijacked by you know techies who don't necessarily understand economics.
[00:20:46] And when it comes down to the simple test of hey if I can send you you know 50 bucks in bitcoin cash and it cost me you know a third of a penny or I can send you 50 bucks and bitcoin and I've got to pay an extra 25 dollars right now 32 dollars on top of that. And it cost me eighty two dollars versus one that could cost me 50 dollars and you know 20 cents. You know it's really is really not that hard calculus to figure out which one I'm going to want to use. So anyway that's my little take on bitcoin and Verbeke in cash. I'm of the opinion in case you can't tell that when cash is Robeck coined at the end the day. I don't really care. And you know I don't make one other point about the tax proposal. I'm very glad that the rate is getting closer to zero. I think the new plan is a little better than the one that was out a few weeks ago not nearly as good as the one that was out in May. But this plan is already obsolete before it even begins because of exactly everything I'm talking about in this not actual reform the current tax plan is yes is moving the number closer to zero. I'm very happy about that. Fantastic about that but if we have Republicans controlling everything I mean the best case scenario possible for conservatives and there's nothing that's being cut from the budget. No chance of the budget being balance. And I think because of the fact the government can just print money that there is no reason to even have taxes if they can just print money to cover the taxes anyways. Then why do you need to extort us. And the reason they need to extort us is because it's not about getting the money. It's about having their control.
[00:22:16] And that's where the taxation system has been about all from the beginning. And actually that's a little bit not true because in the beginning of of America the tax system was there to actually you know we had real gold and silver and so people had the government needed that gold the government needed that silver and to then replenish your stockpiles. Because they weren't they had a continental and that you know crashed down to zero so the founders said no only gold and silver shall be legal tender in America. And now we've gotten so far away from that that I think FDR confiscated gold in 33. So Americans really couldn't own it or it wasn't the dollar wasn't convertible into gold after 33. Then you go back to 1971 that's when Nixon got us off the gold standard from the terms of foreigners at that point weren't allowed to convert their Federal Reserve Notes or dollars into gold anymore. So with bitcoin. Why I see this being such a great advance man or a cryptos in general why is this being such a great advancement for humanity is now all of a sudden we're not being ripped off by the banks who are printing this money the money is going to the ultra rich first it's going to people who have money in their stock in the market first. I manage money for a living. So guess what. That actually helps me out but I don't want my great great grandchildren being slaves to the system. So that's why I'm passionate about it. Where were all of these different wars.
[00:23:38] You know if you can't crowdfund a war you can't force people to you know not force if people won't voluntarily give up their own money to go do something that is probably a bad idea. I don't need the government putting a gun to my head and then making it sound like I'm giving some sort of charitable contribution. And you know that right now it can never be repaid absolute never be repaid. But getting back to the tax plan is we need to have a consumption based tax with crypto currency exploding with people having all of these gains. It is a tax nightmare right now especially for the early adopters an absolute tax nightmare of trying to figure out what their basis is how do they prove you know where are they buying things for business. Were they mining versus buying bitcoins because there's two different forms of taxation on that. Did they inherit the coin. There is so many complications dealing with this and that's why we need to move to move to a consumption tax so you know let's say you know you're a poor kid from the ghetto and you're buying 200 dollar Jordans you should get taxed for that because you shouldn't be buying 200 dollar Jordan's. Well you should be doing is using her money to save and invest for the future and we will maybe in the system we exempts poor people from this from at least in terms of essential goods. But when it comes to when it when it when it comes to the overall economy we should be encouraging people to save and invest and to make more money. I mean right now we are taxing people making money. I mean so how do you expect to get more money in the economy by disincentive causing people to actually work.
[00:25:10] And so that's why I'm really upset with this tax bill. You know again I am a Trump fan. I'm not even sure if I'm going to vote for him next time. Probably never going to bother voting because you put Jerome Paul in intro and Paul is basically Janet Yellen 2.0. And so from my perspective is let's say there's a thousand problems out there and let's say Trump fixes 999 if you don't fix that one problem that's remaining is the central banking system and you don't fix I don't care about the other 999 things that you've done because the rest of it doesn't even matter. And that's why with Krypto it's a way to hedge against all this stuff because eventually eventually you know our day is going to come as a currency. You know luckily right now there's other currencies are doing even worse than us. So again I don't know the exact timing on this in the in the interim the currency might actually get even stronger because of demographic information and that's a whole another whole another rabbit trail that I don't feel like going down right now in the long run. You can't have you know 200 trillion dollars of unfunded liabilities you have 20 choline dollars a debt that doesn't include Social Security does include Medicare that's even more of an unfunded obligation and Social Security doesn't include the wars doesn't include healthcare does include any of that stuff. And so I just see this as a slow motion train wreck that's going to be absolutely devastating.
[00:26:25] And so you know have some money and Krypto make sure you know how much money you can lose first because you know if you are not willing to have your Krypto go down 90 percent which actually happened to the consonantal. If you're not willing to have a go down 90 percent you shouldn't be in it you should figure out how much you're willing to lose how much you can stomach losing how much you can actually afford to lose and then kind of reverse engineer. But you know I think it's also a good idea for people to have you know physical gold and silver. Also a good idea for people to have stocks and you're probably thinking oh well if everything crashes then you know I wouldn't want money in stocks. Well in Germany in the early 1900 you go for like 19 you know I think it's like 19 10 or 1913 in 1923 the German stock market went from just about you know like 100 200 to 23 million. And let's say you own Mercedes stock back then and so Mercedes the oldest car company in the world. They the Germans went through the gold market the Renmark the Reisch mark and then the deutsche mark. So if you had you know a hundred dollar sitting and Goldmark will eventually you're wiped out and was basically you know you know worth next to nothing. Maybe you get 10 cents in the dollar. Then you had the right Mark.
[00:27:33] Same deal then you had the Renmark or so I think it was Renmark then Reichsmark the same deal but if you had the 100 shares of Mercedes stock well then it was a lease then transposed from you know will now my 100 shares are getting priced in this now asking price and not and it's getting a price and this then eventually getting price and Deutschemark Well I guess eventually getting priced in euros and what that is is a hedge. Now it doesn't mean that the average citizen now is of southern Germany was to uncrate in 1923 it meant that now they were taking a wheel barrel over Tigo a wheelbarrow to go buy a loaf of bread. And so I think in the long run a long enough time horizon certainly I'm a pretty young guy. So over the course of my lifetime I think that's more than inevitable especially if you know in the next few years it me crazy life extension technology coming out crazy advancements and in the biotech space. So I mean if people can live another 10 years I mean they might be able to live another 80 at the rate things are going but at the rate things are going you know I don't even know if you want to live another 80 and at the rate things are going. You know I'm not sure if you know we're going to provoke some sort of war over North Korea. Oh yeah the big headline is that you guys see this North Korea you know is apparently amassing stockpiles of Bitcoin. And so you know you've got to throw in you know got to give everybody a lot of fear and say oh now Bitcoin that's the money of Kim Jong moon.
[00:28:52] So I've got to get rid of it and you know severed it because it was at this point probably rambled on a lot more than I'd like to but you know with bitcoin Verbeke one cash it's my opinion that Bitcoin cash Israel bitcoin Soest my opinion that I don't really care because I think there's other ones that really do things better than even what bitcoin cash does. But at the of day no I appreciate Roger Vere's doing I think a lot of the people who are in these bitcoin maximalists I think of Loudon's don't understand the full story of the inside baseball what's going on and they just think that you know that basically bitcoin cash is trying to hijack the brand name when really the core development of Bitcoin. They're the ones who got hijacked thanks for watching. Please like and share. I've been somewhat ghosted on Facebook meaning Facebook. When I go live doesn't really show what anybody says to a super limited amount of people these days. But no I appreciate everything let me know if few more questions about this subject. It is pretty complicated there's lots of areas and I can go on on here but no wait like me talk about and we'll go from there to catch everybody. Thank you.
Tuesday Dec 19, 2017
Tuesday Dec 19, 2017
Audio only: https://www.youtube.com/watch?v=BX2N4BVhlcU
We are very excited and honored to have Doug Casey on the podcast and for 2 FULL HOURS! In this podcast Tim and Ernie interview Doug Casey from the studios of Freedoms Phoenix . In this wide ranging and in depth interview, Doug shares his thoughts on Crypto, the economy, spirituality, the singularity, IPOing' the Saloman islands and much more. We also discuss Doug's latest novel's "Drug Lord" and "Speculator" both of which can be found at www.highgroundseries.com.
Bio:
Doug Casey is a Best-selling author, world-renowned speculator, and libertarian philosopher. Mr Casey has garnered a well-earned reputation for his erudite (and often controversial) insights into politics, economics, and investment markets.
Doug is widely respected as one of the preeminent authorities on “rational speculation,” especially in the high-potential natural resource sector.
Doug literally wrote the book on profiting from periods of economic turmoil: his book Crisis Investing spent multiple weeks as #1 on the New York Times bestseller list and became the best-selling financial book of 1980 with 438,640 copies sold; surpassing big-caliber names, like Free to Choose by Milton Friedman, The Real War by Richard Nixon, and Cosmos by Carl Sagan.
Then Doug broke the record with his next book, Strategic Investing, by receiving the largest advance ever paid for a financial book at the time. Interestingly enough, Doug’s book The International Man was the most sold book in the history of Rhodesia. And his most recent releases Totally Incorrect (2012) and Right on the Money (2013) continue the tradition of challenging statism and advocating liberty and free markets.
He has been a featured guest on hundreds of radio and TV shows, including David Letterman, Merv Griffin, Charlie Rose, Phil Donahue, Regis Philbin, Maury Povich, NBC News, and CNN; has been the topic of numerous features in periodicals such as Time, Forbes, People, and the Washington Post; and is a regular keynote speaker at FreedomFest, the world’s largest gathering of free minds.
Doug has lived in 10 countries and visited over 175. Today you’re most likely to find him at La Estancia de Cafayate (Casey’s Gulch), an oasis tucked away in the high red mountains outside Salta, Argentina. Cafayate most resembles the isolating beauty of Bryce Canyon, Utah combined with the lush vineyards of Napa Valley. Residents enjoy economic and social freedoms not found in the US and some of the best wine and golf on the planet. Make sure to check out both of Doug's most recent novels "Drug Lord" and "Speculator" at www.highgroundseries.com
Tuesday Dec 12, 2017
Tuesday Dec 12, 2017
In this episode of the Libertarian Advisor podcast we cover the bitcoin mania taking the world by storm.
In the past few weeks the amount of interest in bitcoin has absolutely exploded. Tim discusses why he's excited about
Crypto's while giving a brief background of his blockchain investing experience.
Tim also goes over how to buy and sell bitcoin, how to buy alt coins and what exchanges to use to buy alt coins.
We also cover how to store bitcoin and what "Cold Storage" means.
Lastly we talk about the cashless future and whether the decentralized cashless future is superior to the tracked, traced, controlled and centralized government cashless future. I'm guessing you already know my answer on this.
Transcription:
[00:00:02] We are good to go. Hey what's up everybody. It's Tim Picciott the libertarian adviser. And what I want to talk about today is you know how to buy bitcoin. You know why you should buy Bitcoin should you buy bitcoin. How much to invest you know can't be hacked how to secure. And just to give you a little background about myself and this is not to you I taught myself or try to you know act more important than I really am. But you know you see a lot of people out there Talking about bit coin you know it's you know the new cause de jour that's out there right now. But this has been something that I've been studying for you know a very very long time. You know let's give a little background about myself. I graduated in 2008. So right in time for the economy to implode I started my career in finance. Two weeks before Bitcoin was created and if you realized what happened two weeks before it was created is that is actually when the financial crisis happened so I started the day Lehman Brothers crashed. And so you know here I am you know out there in a financial planning job you know 22 years old you know did not like sales. Last thing I wanted to be doing.
[00:01:05] And you know really it was kind of thrown to the wolves spent you know really really kind of a few years as you know head down trying to study as much as I could you know becoming a financial expert but you know becoming a financial expert and making money you know really are two different things now. You know eventually you know money you know knowledge is money or knowledge. You know eventually leads to money so I'm really glad that I didn't spend all of those years you know studying as much as I did. But you know when you're living you know credit card a credit card doesn't give you a lot of time to invest. Dan you know fast forward three years I moved from really from New York to Arizona had to basically start over again. It took about three years to get going again. So you know 2011 which would have been a great time to buy bitcoin. And really you know kind of fast forward to 2015. My business was really really rock n roll and you know did really really well 2015. And then that's when I decided you know what I'm going to quit my current job. That was really lucrative. That finally was lucrative for the first time in my entire career and I'm going to start my own company right after my daughter graduate. So you know bitcoin is something that I had been you know looking into. You know right from the right from the very very beginning the first person I ever told about bitcoin from an investment standpoint was at 30 dollars told another client about bitcoin when I was at 200 dollars. I'm a frequent guest on the on the show LRN.FM declare your independence. Ernest Hancock one of the first probably the second person to start talking about bitcoin on the radio and I'm on I've been on his show probably 20 times a year.
[00:02:38] So when I'm saying the stuff I'm not saying it is you know all these charlatans who are out there you know now all of a sudden you know everybody's been quite an expert. But at the beginning of this year you know I really didn't think you know I did not see this coming because I thought when the ETF decision I thought that that was going to get denied and that that was going be bad news for Bitcoin. And you know I was in the typical you know mindstate of you know hey it's you know I was probably like a thousand bucks or 900 box and I was thinking hey this is you know super expensive a 900 dollars because I didn't fully understand and what I did understand from the very very beginning is I understood that you know Bitcoin is a way to you know really supplant the banks it's a way to cut out the middleman. It's a way to you know me give something of value to you. And there is no government to be able to stop that and that's something I understood right from the beginning. But what I didn't understand until probably fast forward about March of this year and really it was at the behest of Ernest Hancock you know really making sure that I understood this was how the block chain actually worked. And so I spent tons of time. And anybody that knows me knows that whenever I dig into something you know I've go all in. You know I you know I can't go and do a 5 K I've got to go do an iron.
[00:03:47] You know I can't go and you know just become a financial planner and study for a week to get my series 65. I've got to be you know the youngest person in America to get the CFP or you know probably one of the youngest people ever to get that I know everything I do is I'm all into everything that I do and that's how I live my life.
[00:04:03] So when it came to Bitcoin you know I understood really how the block chain could really you know overtake everything and when I say everything I mean in the future you know there the Internet the future is going to be beamed down from satellites that are 62 miles above the atmosphere where no one can stop it where it's going to be encrypted. You know to the tune of you know four times even what bitcoin is right now and there's going to be these decentralized mesh networks where you're not going to be able to stop the Internet. And it's it's going to be revolutionary whether it comes to stock exchanges. There is a company right now that is called Eshuys Overstock.com. It's a subsidiary of them ICI ventures and their product is zero where the transaction is the settlement what that means is you can have a stock transaction and instead of having to wait three days instantly the stock is settled. It's going to cost next to nothing probably in the future what's going to happen is instead of and the S&P 500 by all 500 stocks at once. It's going to cost next to nothing and it's going to happen instantaneously in the benefit of doing that is that let's say you know 40 of those stocks are down 100 of those stocks are down. The beauty of this is that now you can just sell those stocks that are down. There's all sorts of tax reasons for doing that. And that's something that's not happening in the future that's happening now that that IPO is happening on the 18th again.
[00:05:23] I'm not selling it I'm not you know it's gonna be an incredible investor to get into this. I'm not advocating anybody no good just gets in is something about doing your homework and really you know nobody should take my word for any of this. You know you should go out and do your own homework. And in June I gave a little Facebook live where I basically said the same thing so what I want to do now is I want a flashback to a Facebook Live that I did in June talking about. Specifically it was about Ethereum but also about a block chain.
[00:05:51] Hurd is in time out right now so in about two minutes we're going to get hurt. But the other thing I want to talk about is the tear that Bitcoin has been on and actually all the all the different coins and again early 20s absolute terror. And that's one thing. You know really at the beginning of this year didn't really see that coming. I thought that when the when the ETF decisions are basically not to have bitcoin become an ETF I. Thought that was can be the next to it. The other currencies to watch out for me I'm not advocating anybody goes out and buy this. One of the ones about recently was a theory about a month and a half ago where I said I'm not advocating anybody goes out and buy this you know that there are a lot of disclosures to be made.
[00:06:35] And so when people ask me how much should I invest in the bitcoin. How much should I invest into crypto currencies. I'm going to use Bitcoin as a you know kind of a catchall. Obviously I know that crypto currencies and Bitcoin is not exactly the same thing and that there is no 4300 different crypto currencies but what you should do is figure out how much you can afford to lose. You know if you're twenty five years old you're going to have a much different investment profile than if you're 65 years old and if you're 55 years old and if you're 45. Everybody's got different things going on in their life. And you know honestly for me know my money right now is better spent investing into my own business because that's something that I can control. But really the only other investments that I've been making and again this is going back to you know earlier this year has been the first one was into Ethereum when it was so into double digits because I'm not because I thought I was some speculative hype or I thought I was really rich off of this is because I understood what the underlying technology meant with a theory is you actually have. It's basically like an operating system where where you can have applications that are built on top of this operating system that can happen you know automatic decentralized. You know without any way to stop it.
[00:07:44] And so you know that's one thing people do understands it's a lot more than you know thinking that I'm going to go to Starbucks and and all of a sudden they are not going to take the dollar and are going to take bitcoin. That's not why I'm into crypto currencies although you know maybe in the future maybe that's where you know maybe that's where things are going someday. But however that's not that's not what really got me super excited. It was all the other applications of Bitcoin. But when it comes to how much should you invest in the Bitcoin. You know let's say you need fifty thousand dollars a year to live on and you're gonna get 20000 for Social Security. And depending on how old you are I wouldn't really count that. And I think to always pay it. But you know someday that money might not buy you anything but you know let's say you get 20000 so security another 10000 from a pension you know. You know maybe 18 percent of people out there that are still getting pensions. So now I've got 30000 coming in. Well let's figure out a way the best way to get the other 20000 in you know in the safest manner possible and let's say you've got another 100000 hours leftover will then use that money to invest in the bitcoin. Don't go and just throw everything into it. Maybe if you're you know 20 20 25 years old now obviously at that point your networks don't a lot then yeah you can go afford to do that. But you know you should have some sort of plan.
[00:08:50] He shouldn't just go willy nilly into everything because there's people that are getting into this that don't know nothing about the philosophy of bitcoin they know nothing about the you know the underlying block chain that do nothing about any of the inside baseball that know nothing about all these other currencies and all they want to do is say you know hey I've got 100 bucks and I want to turn it into a thousand by next week. And if you go to any of these forums you know just go on Facebook right now and Tibnin these cryptocurrency forums. It is littered with people saying hey I've got a 100 bucks and I want it to be a thousand. Well you know a lot of those people are going on to you know you know like a coin cap dot dot io or coin market cap is another great Web site that shows you in real time what the market cap is what the various current crypto currencies are doing and right now as we speak I'm taking a look at this. The market cap is almost half a billion dollars. Four hundred and ninety three billion dollars is the current market cap. So right now it is the largest bank in the world. This is something that people need to take seriously because the people that don't take this seriously are going to be people in 1994 who didn't take the internet seriously because this is a lot more than currency. This is way more than what people even completely. Can even understand. I was at a bitcoin conference several months ago and I was the only financial adviser there and now I see CNBC or as I was referred to as CNBC CMBS trotting out all these financial advisers that literally know nothing about bitcoin talking about what a scam it is like. You know what.
[00:10:18] I had clients that wanted to get into bitcoin you know earlier this year and they thought 4000 was too high. They're going wait for the dip boom and never dip and again on a microsecond basis then yeah. You know there could be bubbles. It could be you know a little bit too frothy right now. Obviously it went up a ton and you've got to be a little bit hesitant of Wall Street getting in. But the bigger bubble is the 500 trillion dollar derivative bubble in my opinion 500 billion being the lowest estimate for that derivatives bubble. Other estimates put that at closer to you know closer to you know over a quadrillion dollars.
[00:10:48] Anyway I'm going go back to the video that I did in June talking about Ethereum 500 percent in a month and a half it's just absolutely nuts but it's not because I think that we should put a lot more in just currency. Why. I was a believer and it it's because if you actually if you go on youtube maybe typing Retallick booter in the. U.S.. I guess a founder of the creator of that theory is because the actual block chain really is going to have the ability someday whether it's a theory of where it's made safer or whether it's you know the seven hundred nineteen other ones that have out there is so in June there was a hundred and now.
[00:11:29] Now it's over 4400 so just to tell you how much it's been in probably out of those 4200 probably 3500 of them are scans. There are a bunch that are Ponzi schemes are a bunch of fraudsters and hucksters that are out there so you know you better know what you're getting yourself into. And you better be into this for a lot more than hey you think you're in to make a quick buck or two because I think a lot of people are going to be separated from their money real quick. But a lot of people are probably going to make a ton of money. So here we go.
[00:11:54] The Internet of the future are going to be built on top of these platforms. They're going to be able to place different stock exchanges. They're going to be able to cut out the middleman in the financial systems. They're going to be able to cut out different real estate transact and I'm one of those middlemen in the financial systems and I'm still saying this being able to cut out the middleman. Now the only. Thing you guys are wondering why and where the White Peter out here is.
[00:12:18] All right we can we can stop that. But again I did bring up earlier today that you know that the Internet in 1994 the people that were pooh poohing that are wondering what that was. It is literally going to be just as dumb. The people that are pooh poohing this today are going to seem just as dumb as if you will back down so here's a clip from the Today show in 1994 with Al Roker talking about Internet.
[00:12:41] What do you say. What internet is. That. Massive computer network and one that's becoming really big now from the stage show. How does it not. What do you write. What like mail. I know a lot of people use it and communicate and communicate with NBC writers and fishers. Alison can you explain why internet is she can't say anything in ten seconds or less. It will be in the studio.
[00:13:06] All right and that was again off 1994 Today show with Al Roker and they were talking about what is the internet and nowadays I mean you can literally see people saying you know what is. BLOCK chain what does Bitcoin. It's very very hard to wrap your head around. But what I really want to impress people that is a lot more than just simply you know hey I can transact something value to you and nobody can stop me. Obviously that's a very very important feature and one of the guys who is badmouthing bitcoin not too long ago was that Prince and now Talib whatever his name is you know one of the biggest owners of Twitter and Citigroup he was he was calling Bitcoin a scam. And then what happened to his ass was you know two weeks later he was face down in a Riyadh Ritz Carlton with 35 billion dollars seized. Well guess what. You know that guy was she had some bitcoin because now all of his assets were to seed. Thank you for playing. That's the reason why you want to have crypto currencies again using Bitcoin to block chain and crypto currencies all as one big name I'm not even that big of a fan of bitcoin for other inside baseball reasons I'm not going to go into. Now you can go to a libertarian advisor dot com. I've got a podcast on that. Two podcasts ago called cryptos and conspiracies absurd one she wanted to know more about the inside baseball.
[00:14:16] But where I'm going with this is you know my plans for this is I'm creating the one of the first cryptocurrency IRA companies out there especially from a licensed advisor.
[00:14:26] So in order to do that I've got to sell and broker dealer book business drop my series 7 license pay a massive fine you know take on a massive amount of headache and all this money that I'm spending doing this. You know I think it's better spending spending building up this business is even investing into bitcoin or cryptocurrency itself. So this is something where I'm all in again. You know I'm I was one of the youngest people ever to pass a certified financial planner exam in 2007. I told my I was running my schools to demands investment fund on the finance specifically the financial stocks said don't buy any. And at that point I think had the highest endowment return in America we lost less than everybody else. So you know this is a game that I was in the cyber game beforehand. It made a pretty good call. In 2007 I first started getting into investing in 19. I was like 1998 or 99 that grandpa gave me a thousand bucks. I thought it was like a billion. He talked me out of the investment. Wanted to make because he thought the market was overvalued. He was 100 percent right. And that technology I want to invest in was Bluetooth well guess what. This is two times a billion in terms of the potential that this has. But again there are risks to it. You should know the risks you should study this yourself. But now I want to talk about how to buy bitcoin.
[00:15:43] So in America probably the easiest way or the most popular way is through a company called coin base. And so what you do is you log on you got to take a little I think selfie of yourself upload a driver's license so they have all the anti money laundering all the know your customer rules that are artifacts that people are like oh this is just for drug dealers. Well guess what drug dealers aren't going around and taking pictures of themselves and verifying bank accounts to do this stuff. So whenever I hear people say that you know they have absolutely no idea what they're talking about. And you know it would be much actually easier to track down a drug transaction payment through block chain opened Ledger than it would be through you know cash. So anyone who wants to make that argument you know has no idea what they're talking about because you want to talk about you know who actually funds you know terrorism. You know it's U.S. government dropping off you know Toyoda's and Humvee's over to you know Al Nusra Front and the free Syrian army and then dropping off you know all these you know weapons to them and stacks of cash and that Opes looks looks. You know they ended up giving all that over to al Qaeda and then change your name to ISIS. But again different story. Not to get into that. But again to coin base that is where a lot of people you just took your bank account up to it. You know I'm not getting any money from this or not paying me to say this. I think cracklin is another one K.R. a. Not sure how to spell it maybe. KayKay. Maybe you can google that.
[00:17:07] Not sure exactly which one gets the best has the best fees or best rates. And actually there is a way to actually avoid paying the fees of Coinbase if you are a market maker. So the exchange that it runs off is called the GDX and what you can do for the GDX is you can hook your bank account up to that logon with your coin base account. If you say hey I want to buy and I'm sure the prices are going to go back to let me go back to market cap right now. All right. So Bitcoin is at seventeen thousand four hundred sixteen dollars. As of right now. So if you wanted to say hey I want to buy bitcoin at seventeen thousand four hundred fifteen dollars. And maybe when the price dips down then you can fulfill that order you run the risk of maybe it doesn't step down and then all of a sudden your order is not fulfilled. So there is an opportunity cost to do this. It takes more time. Depends how valuable your time is just as a just as an aside the other day. I want to go do this move over some money to buy some light coin and you know the three dollar fee is trying to avoid. You know like coin went from 100 dollars to 300. So you know I have through to our fee. But now it's 300 percent higher so you know that is one of the drawbacks to doing that.
[00:18:16] So maybe this keeps some more money at Coinbase and their cash account because you know when it does dip or if it does dip and you want to pull the trigger that way the funds are already there. Because the legacy banking system takes you know four or five days to move your money in. Bitcoin happens very very quickly. Then when it comes to you know hey how do I buy these other coins because right now a coin base you can pretty much only buy Bitcoin theory like coin not pretty much. Those are the three that you can buy although there are rumors there are adding other ones but you can move your money from Coinbase then to an exchange called bitte Shrek's get B.I T.T. X no affiliation with them. You should really know what you're doing because again if you know f up and send something to the wrong address especially at a company like attracts you know unless it's a ton of money you know they they could give two shits about it and boom your money money's lost so you know really know what you're doing with this because if you screw something up you know there's no one 100 number to call. There's no central bank to call. You know you are your own Swiss bank account as actually Barack Obama said. But again with with big trucks you can buy. I think it was like a thousand different currencies on there so most of them only take bitcoins some of them take a theory. So you can move your bitcoin in there by the other ones again. Do your homework before buying other ones don't jump on the bandwagon. Don't just buy something because I say to go buy it. You know you shouldn't. Trust me you shouldn't trust anybody.
[00:19:46] You should go actually research itself and only trust yourself. Another good exchange is called shape shift. And is probably a little more advance for people that are out there but you have to have a let's say I wanted to buy an NEO make him make up that she has won. I'm not sure if on on service even on shapeshifters let's say Bitcoin. And I had a neo address. Again I'm not saying go out and buy buy neo which is sort of like the Chinese version of the theory and would be the easiest way to explain that. But then of course you know what a dream is. But anyways you know you put it in your bitcoin address that it's receiving and then you put in the new address that you want to go to. And then they take out a small fee for doing it. Their money is never on the exchange. So in terms of privacy in terms of safety you know I think that's probably the most secure and safest way to do that in my opinion again. You know probably not a beginner thing. All this stuff you can go back you can youtube all of this stuff so if you want to youtube that little GDX trick you can go YouTube that they've got full tutorials on that if you want to go you know YouTube how to open up a coin base account boom you can go do that although you know if you can't figure out how Rowbottom a coin base account you know you're probably not smart enough to be invested into bitcoin to begin with.
[00:21:01] So let's just throw that out there then the other thing I want to talk about was how to actually secure your bitcoin because a lot of times you hear people talk about you know bitcoin getting hacked you know. You know didn't you hear about Bitcoin that all this money was lost you know blah blah blah blah. One every one of those instances it did not happen to people who had money in what you called cold storage. So when you have money that's on your phone that's what is referred to as a hot wallet a hot wallet just like your bank account information could be compromised could be stolen. You know there are bad actors that are out there. There are people especially now with a market cap approaching half a trillion dollars. There are bad actors that are out there that want to you know get a piece of it. And so if you have money that's on your phone you know that is vulnerable. So what I would recommend is that you look into maybe companies that will store your money online in different multi signature wallets Malta and your wallet is sort of a. Think of it as like a nuclear submarine code where you need two different keys to unlock that unlock it. And then once it's unlocked then at that point the transaction can happen. So you'd actually have that hack into two different. You'd actually have to hack into two different you know two different private keys in order to in order to make this happen.
[00:22:21] So again when you when you have another device that they sell one of them is called The Ledger nano s and other ones called the treys or. And these are basically a little like USP sticks the trays or looks a little funny and it's a little USP that you can download it into the USP stick and then with that you're thinking OK well what if I lose that USP stick with you know my dog eats. Hopefully that's not the case what would get. You know you know our Trunchbull downpour and all of a sudden you know short circuits well what they do is they give you 24 different seed words and seed words is very hard to mess it up. It literally says you one. And you write it down to. And you write that down three then you write that down and then obviously make sure that that's not just laying around you right next to your you know trays or it would be pretty stupid idea. But what you can do is you know if you were to lose your device uses 24 words you can repopulate it back on to any other device. So I'd highly recommend that if you are going to go into crypto that you do it and you do it right you make sure that you aren't keeping all of your money on your phone. You know a really bad idea to do that you know keep some you know cash on the phone again. I wouldn't even recommend even keeping Bitcoin on your phone because you know let's say you know today I was out at lunch and wanted to pay somebody you know 15 bucks because you know they Bauby launch.
[00:23:39] Well if I wanted to do that in bitcoin the fee might be you know like 10 15 20 bucks but if I use bitcoin cash the fee might be one third of 1 cent if I use Dasch. Same thing like coins same thing Ethereum classic same thing Ethereum also very cheap so you know as people start getting more and more into this are going to realize some of the different intricacies you know because different currencies have different features. Again I talked more about that in the park of did you know I know a few months ago or maybe like a month ago. But in terms of Bitcoin itself being hacked really at this point you know the you know there's half a trillion dollar bounty on hacking and it's been seven years and I kind of got more into this again and the other podcasts but what you'd have to do is how the bitcoin comes into existence.
[00:24:24] The short version is if the guess is Shujaaz number there's like 14000 trillion guesses a second and that number swishes you know by the second as as mining and electricity costs you know really kind of have this whole supply and demand equilibrium but as much as people are guessing at the network in order for you to have the network you have to be the first person to guess that and then reengineer all every other transaction that's ever happened and then be the first one to then put on the next block. In my own layman's terms understanding you know you know the odds of having 14000 trillion people guessing at a second and you having the time to then do to reengineer every other one and then also be the one to find the next block. I mean it's the odds are astronomical of that of that happening. It's not to say if quantum comes that that can't that that can't happen. I think that is a big risk that's out there.
[00:25:17] That's why there's other currencies like nexus Earth wish somebody Konger Cantrell is the founder of ticker's summer and access. You know they're gonna be launching satellites up into space broadcasting Internet decentralized down to everybody and they are trying to quantum quantum quantum resistance their technology by using a 10 24 encryption versus Bitcoin which is 256 so layman's terms there is four times more secure than bitcoin.
[00:25:44] But really you know another reason why I like bitcoin is we take a look at our future. We take a look at where things are going and really there's you know a tale of two different futures that are upon us. One of those futures is and both of these futures involve digital cash. One of those futures involves Tittel cat digital cash that is tracked surveiled. Let's say you're a Trump voter and Hillary Clinton gets in the office gets in office. You know you want somebody you know like one of these psychopaths whether they're on the left side of the aisle or on the right side of the aisle. They're both psychopaths. Do you want one of these psychopaths and then say hey we didn't like your speech so we're shutting off of digital cash because that's where things are going with no currently. Or do you want to have a decentralized decentralized digital cash like bitcoin or crypto currencies where there is no way to shut it off there is no way to stop it and you see all these people saying oh well this becomes too popular. The government is just going to turn it off.
[00:26:39] Well I mean what does this say about our government if they're going to turn off bitcoin. Well first off what does that say about you because you don't obviously don't know enough about crypto currencies. I mean they could they could say hey you can't have it in IRA accounts anymore and yeah that would that would suck. But when it comes to you know banning Bitcoin you know there really is no way to ban Bitcoin.
[00:26:58] There is no way to I mean the government can you know stop people from using drugs came to stop people from you know all the nine million laws we have to prevent people against doing certain things that you know the government doesn't want them to do. And guess what. It's a lot harder to stop bitcoin. I mean what you can do is take out the electricity and then even that did take out electricity there's thousands and thousands of nodes all around the world. As soon as one of them repopulate the whole bitcoin network repopulate again. So this is something that can't be stopped. And if I was going to have my future rests upon government cash that digital tracked surveilled can be stopped can be censored can shut down political dissidents which believe me that people like Hillary Clinton got in there will be a lot of people getting shut down right now. Or would you rather have bitcoin or crypto currencies that can't be shut down. I'm going with that coin. You can go with the one that gets shut down and we'll see who's happier at the end of the day. All right. Now though one of the last points I wanted to make was you know we get to a certain tipping points right now.
[00:27:55] I mean hardly anybody as a percentage owns bitcoin. I think there's like 7 million wallets in the world that own more than 100 bucks. So you know you've got you know 7 million divided by 7 billion people out there. And that's the percentage of the people that are out there that own Bitcoin and where this is really attractive is not even necessarily in America. So you've got to stop thinking of everything just in terms of America. Think about the rest of the world that is you know that's not going to have a J.P. Morgan Chase branch open up down the street in Africa but pretty soon they're going to have decentralized Internet access. Pretty soon they're going to have excuse me and pretty soon they're going to have the ability to you know with a smartphone. And again you know these smartphones are going stupid cheap you know pretty soon everyone's going to be having them in the third world where you know where you know let's say you live in Venezuela or you live in you. And all third world countries in Africa. You know bitcoins actually might be more stable than their own currency and the only difference between you know the volatility in bitcoin is the volatility of their own currencies that the volatility of Bitcoin keeps going up whereas the volatility of the other currency keeps going down. And right now we're in the process of one of my video editors right now making a video where it's Peter Schiff saying look at Bitcoin it crashed down to 75. It crashed down to 100. It crashed down to 200. It crashed down to 500.
[00:29:11] It crashed onto a thousand. It crashed down to 5000 and when he's trying to say is that you know the difference between the continental there's an old saying the very first currency in America was the Continental and they were saying saying used to be not worth the Continental what he was saying as well the Continental was the holders of that. Eventually he got back ten cents in the dollar and differences the holders of bitcoin might get back nothing and maybe he's right from the standpoint that Bitcoin is not the ultimate end all be all and I'm actually of that of that opinion. But you know he's really kind of stuck in his ways. But if you guys want to know more about this and really suggest you take a look at Andreas Antonopoulos not sure I was Paul's name it's kind of like ants Apolis how everyone spelled out is probably one of most most knowledgeable guys in the space and I want to do is I want to leave you guys with a quote from Mark Gary Vaynerchuk. Gary Vaynerchuk is one of the first announcers in the Facebook. He was calling the he called the fact that Instagram would be bought by Facebook for a billion dollars. Everybody laughed at him. You know way back before it happened one of the biggest social media tycoons that's out there. You know one of the guys that has his finger down to the pulse of the people more than anybody that's out there. And this was back in let's see when this was actually earlier this earlier this year. And this is Gary hadn't say about bitcoin invested a block chain in bitcoin.
[00:30:33] So I bought bitcoin in 2014. So I just need it I just need all of you to.
[00:30:40] Keep that for a minute. OK. I love showing my coin base the people like. I put in twenty k. It's worth it. So Marcus listen. I.
[00:30:55] I think block change. Way bigger than people realize like people are fucking with it like a bitcoin level then let people a little smarter on the Ethereum level. But when you understand what the block chain is. My big thing with the block chain is it can it can literally overthrow America and China and Russia. It's that powerful. It's a platform of trust and we can do shit with each other and everybody else is out. It's so heavy man. I haven't. I understand it theoretically. I haven't spent a lot of time in it right. But I've been spending more lately. You know there's a lot of bullshit. CEOs get rich quick bullshit that's starting to happen. Yes sir. Thank you. I need all the dust to settle a little bit. I'm watching you know my favorite time is when I'm like the cobra and the grass. I love social media like 2006 7 8 because I was just like creep and I was like in there I was watching it like that time with block chain. Right now that time with a heart attack with voice I'm a little louder because I was in the grass two years ago with voice and now skills and podcast but now I'm out. I think it's super fascinating I think a lot of people that know a lot more than me which is why I don't spit on it all a lot but it's big big like building on top of it.
[00:32:11] Building on top of a theory and taking vantage it there's real things same way you have to watch how you hacked your social you did a little different. We could talk about any way you want but I think if you will deploy some of that hacker culture into block chain you might find some real fruitful shit.
[00:32:28] It was really appreciate everybody for watching this around 330 phone call. I got to make note one time that is so. Not sure what time zones trooper skew the view of watch me. Anyways I definitely appreciate the watch. Please make sure to share. Please make sure to like please make sure to ask me questions that you guys have to answer. And thanks for watching and talk to you guys later. Take care.
Friday Dec 08, 2017
Friday Dec 08, 2017
Full video here:https://youtu.be/k8jeNo-wTX4
In this podcast we discuss Nobel Prize Winner Joseph Stiglitz's claim that bitcoin ought to be outlawed. We then compare the fraud that is the global monetary system using (visual capitalists infographics) to Bitcoin. Finally we get into some of the basic misconceptions people have when it comes to the price of crypto currencies relative to one another while providing some very useful crypto currency websites.