Insights Into Tomorrow: Episode 12 “The Cryptocurrency Conundrum”

In this episode  we’ll talk about what Cryptocurrency is, and understand a little about blockchain technology and how it works. Then we’ll take a look at some of the real world impacts cryptocurrency is having on today’s economy and weather it’s something worth investing in.  Finally we’ll look at how cryptocurrencies are changing the world and what the future of crypto is and talk a little about NFT’s and their place in the crypto universe

Show Notes

[INTRO THEME]

  • [INTRODUCTIONS] (3-5 minutes)
    • Show introduction:
      •  Insights Into Tomorrow Episode: 12  “The Cryptocurrency Conundrum”
    • Host introductions
      • Host (Joseph Whalen)
      • My co-host (Sam Whalen)

Summary

  • First we’ll talk about what Cryptocurrency is, and understand a little about blockchain technology
  • Then we’ll take a look at some of the real time impacts cryptocurrency is having on today’s economy and weather it’s something worth investing in
  • Finally we’ll look at how cryptocurrencies are changing the world and what the future of crypto is and talk a little about NFT’s and their place in the crypto universe

[TRANSITION]

[SEGMENT 1: Topic Introduction/Episode Premise] (5-10 minutes)

What is Cryptocurrency

https://www.nerdwallet.com/article/investing/cryptocurrency-7-things-to-know

http://bit.ly/39jNCph 

  • A cryptocurrency (or “crypto”) is a digital currency that can be used to buy goods and services, but uses an online ledger with strong cryptography to secure online transactions. 
  • Much of the interest in these unregulated currencies is to trade for profit, with speculators at times driving prices skyward.
  • Many companies have issued their own currencies, often called tokens, and these can be traded specifically for the good or service that the company provides. 
  • Think of them as you would arcade tokens or casino chips. You’ll need to exchange real currency for the cryptocurrency to access the good or service.
  • Cryptocurrencies work using a technology called blockchain. 
  • Part of the appeal of this technology is its security.

What is Blockchain

https://www.investopedia.com/terms/b/blockchain.asp

http://bit.ly/3s8JvUh 

  • Blockchain is a decentralized technology spread across many computers that manages and records transactions. 
  • Blockchain is a specific type of database.
  • It differs from a typical database in the way it stores information; blockchains store data in blocks that are then chained together. 
  • As new data comes in it is entered into a fresh block. 
  • Once the block is filled with data it is chained onto the previous block, which makes the data chained together in chronological order.
  • Different types of information can be stored on a blockchain but the most common use so far has been as a ledger for transactions. 
  • In Bitcoin’s case, blockchain is used in a decentralized way so that no single person or group has control—rather, all users collectively retain control.
  • Decentralized blockchains are immutable, which means that the data entered is irreversible. 
  • For Bitcoin, this means that transactions are permanently recorded and viewable to anyone.

[AD1: SSE]

[SEGMENT 2: Historical background/Symptoms and signs] (10-15 minutes)
 

The Impact of Cryptocurrency on Today’s Economy

  • More than 6,700 different cryptocurrencies are traded publicly, according to CoinMarketCap.com, a market research website. 
  • And cryptocurrencies continue to proliferate, raising money through initial coin offerings, or ICOs. 
  • The total value of all cryptocurrencies on Feb. 18, 2021, was more than $1.6 trillion, according to CoinMarketCap, and the total value of all bitcoins, the most popular digital currency, was pegged at about $969.6billion.
  • Cryptocurrencies appeal to their supporters for a variety of reasons. Here are some of the most popular:
    • Supporters see cryptocurrencies such as Bitcoin as the currency of the future and are racing to buy them now, presumably before they become more valuable
    • Some supporters like the fact that cryptocurrency removes central banks from managing the money supply, since over time these banks tend to reduce the value of money via inflation
    • Other supporters like the technology behind cryptocurrencies, the blockchain, because it’s a decentralized processing and recording system and can be more secure than traditional payment systems
    • Some speculators like cryptocurrencies because they’re going up in value and have no interest in the currencies’ long-term acceptance as a way to move money

Are Cryptocurrencies a Good Investment

  • Cryptocurrencies may go up in value, but many investors see them as mere speculations, not real investments. 
  • The reason? 
    • Just like real currencies, cryptocurrencies generate no cash flow, so for you to profit, someone has to pay more for the currency than you did.
    • That’s what’s called “the greater fool” theory of investment. 
  • Contrast that to a well-managed business, which increases its value over time by growing the profitability and cash flow of the operation.
  • Experts note that Cryptocurrencies such as Bitcoin may not be that safe, and some notable voices in the investment community have advised would-be investors to steer clear of them. 
  • Of particular note, legendary investor Warren Buffett compared Bitcoin to paper checks: 
    • “It’s a very effective way of transmitting money and you can do it anonymously and all that. A check is a way of transmitting money too. Are checks worth a whole lot of money? Just because they can transmit money?”
  • For those who see cryptocurrencies such as Bitcoin as the currency of the future, it should be noted that a currency needs stability so that merchants and consumers can determine what a fair price is for goods. 
  • Bitcoin and other cryptocurrencies have been anything but stable through much of their history. 
  • For example, while Bitcoin traded at close to $20,000 in December 2017, its value then dropped to as low as about $3,200 a year later. 
  • By December 2020, it was trading at record levels again.
  • This price volatility creates a conundrum. 
    • If bitcoins might be worth a lot more in the future, people are less likely to spend and circulate them today, making them less viable as a currency. 
    • Why spend a bitcoin when it could be worth three times the value next year?

[AD2: Teens] (1 minute)

[SEGMENT 3: The Future/Solutions to the issues] (10-15 minutes)
 

How Cryptocurrency is Changing the World

https://www.urdesignmag.com/technology/2020/11/09/five-ways-that-cryptocurrencies-are-changing-the-world-we-live-in/#:~:text=It’s%20clear%20that%20cryptocurrencies%2C%20and,the%20people%20who%20need%20them.

http://bit.ly/312ziwz 

  • Cryptocurrency is not a new creation. It has been around since 2009 when Bitcoin was first created. 
  • However, in recent years it has started to have a more significant impact on the world we live in. 
  • Cryptocurrency has done this by changing the way various industries operate and opening up new opportunities for individuals and businesses alike.
  • The creation of cryptocurrency also introduced blockchain technology to the world. 
  • According to Statista, revenues from this technology are expected to reach more than 39 billion US dollars by 2025. 
  • From these figures, it’s clear that cryptocurrencies and the technology that surrounds them are having a major impact. 
  • Here are some examples of how Cryptocurrency is changing the world
    • Alternative international financial transactions
      • Businesses are always keen to find a way to complete international transactions in the most secure way possible. 
      • Cryptocurrency based solutions like Ripple can help with this. 
      • Ripple operates on an open-source platform and it enables the seamless transfer of both cryptocurrencies like Bitcoin and Litecoin and Fiat money like USD and Yen. 
      • The main process of Ripple is payment settlement and remittance that is similar to the traditional SWIFT system which is used by financial institutions.
    • More options for secure online payments
      • Cryptocurrencies and blockchain technology can make it easier for people to make online payments. 
      • Blockchain wallets store private and public keys that enable payments to be made securely and quickly. 
      • Also, many sites, in various industries, accept cryptocurrencies as a safe way for people to send and deposit money. 
      • For example, online gambling sites that accept cryptocurrencies are popular among young adults and in general with players due to the added security that is provided. 
      • The worldwide online payment system PayPal has also recently announced that it is going to start allowing customers to buy, sell, and hold cryptocurrency in its online wallets.
    • Revolutionising supply chains
      • The global economy is reliant on secure and efficient supply chains. 
      • This makes supply chain security a major concern. 
      • The blockchain technology that enables the use of cryptocurrencies can also be used to improve the security of supply chains thanks to its transparency and decentralised nature. 
      • Certain currencies, like WaltonChain (WTC) and VeChain (VET), are specifically aimed at improving the safety and speed of supply chain operation.
    • Providing a platform for creatives
      • It can often be difficult for professionals like musicians to sell content without interference from middlemen like producers. 
      • Using cryptocurrencies like XRP allows creatives to sell content directly to consumers. 
      • This is because consumers can access the content and pay for it using a real-world payment solution.
    • Changing the way NGOs deal with money
      • Non-governmental organizations (NGOs) engage with cryptocurrencies as a way of getting currency to underprivileged areas of the world. 
      • During the current crisis, the Red Cross in Italy has also started accepting Bitcoin donations from people in order to boost its funds and help it provide the support that people need.
    • It’s clear that cryptocurrencies, and the blockchain technology that surrounds them, are greatly changing the world we live in. 
    • They are doing this by allowing businesses and individuals to make financial transactions and supply chains more secure and by enabling NGOs to better assist the people who need them.

What Are NFTs?

  • NFTs, or non-fungible tokens, are a type of cryptocurrency created on a smart contract platform such as Ethereum. 
  • They are unique digital objects that can be cool to own or even profitable to trade. 
  • Think of them as digital collectible cards. 
  • They typically start out as something only enthusiasts care about, but if you get a rare one, it could be worth a lot one day. 

What is fungible vs. non-fungible? 

  • Cryptocurrencies can be fungible, meaning all the currency’s units (i.e., tokens) are the same and equal, like grains of rice or dollars. 
  • Non-fungible tokens are the opposite — every cryptocurrency unit, or token, is unique and cannot be replicated. 
  • This “non-fungible” property can be used for many things, even certain types of currencies. 
  • But the current NFT craze is mostly fueled by digital art and collectibles. 
  • People have figured out that a unique, digital object can be interesting, cool, and even have a significant monetary value. 
  • It’s why the space has recently blossomed, encompassing thousands of projects involving artworks, gaming, and sports. 

How do NFTs work?

  • It really depends on the platform. 
  • But given the vast majority of NFTs are created and traded on Ethereum, we’ll focus on that. 
  • NFTs are created on Ethereum’s blockchain, which is immutable, meaning it cannot be altered. 
  • No one can undo your ownership of an NFT or re-create that exact same one. 
  • They’re also “permissionless,” so anyone can create, buy, or sell an NFT without asking for permission. 
  • Finally, every NFT is unique, and can be viewed by anyone. 
  • It’s like a unique collectible card in a forever-open store window that anyone can admire, but only one person can own at any given time.

[AD3: Entertainment] (1 minute)

[SEGMENT 4: The Future/Solutions to the issues] (10-15 minutes)

The Future of Cryptocurrency

https://www.investopedia.com/articles/forex/091013/future-cryptocurrency.asp

http://bit.ly/3lC7loR 

  • Some economic analysts predict a big change in crypto is forthcoming as institutional money enters the market.
  • There is the possibility that crypto will be floated on the Nasdaq, which would further add credibility to blockchain and its uses as an alternative to conventional currencies.
  • Some predict that all that crypto needs is a verified exchange traded fund (ETF).
  • An ETF would definitely make it easier for people to invest in Bitcoin, but there still needs to be the demand to want to invest in crypto, which might not automatically be generated with a fund.

Bitcoin Future Outlook

  • The future outlook for bitcoin is the subject of much debate. 
  • While the financial media is proliferated by so-called crypto-evangelists, Harvard University Professor of Economics and Public Policy Kenneth Rogoff suggests that the “overwhelming sentiment” among crypto advocates is that the total “market capitalisation of cryptocurrencies could explode over the next five years, rising to $5-10 [trillion].”
  • The historic volatility of the asset class is “no reason to panic,” he says. Still, he tempered his optimism and that of the “crypto evangelist” view of Bitcoin as digital gold, calling it “nutty,” stating its long-term value is “more likely to be $100 than $100,000.”
  • Rogoff argues that unlike physical gold, Bitcoin’s use is limited to transactions, which makes it more vulnerable to a bubble-like collapse. 
  • Additionally, the cryptocurrency’s energy-intensive verification process is “vastly less efficient” than systems that rely on “a trusted central authority like a central bank.”

Increasing Scrutiny

  • Bitcoin’s main benefits of decentralization and transaction anonymity have also made it a favored currency for a host of illegal activities including money laundering, drug peddling, smuggling and weapons procurement. 
  • This has attracted the attention of powerful regulatory and other government agencies such as the Financial Crimes Enforcement Network (FinCEN), the SEC, and even the FBI and Department of Homeland Security (DHS). 
  • In March 2013, FinCEN issued rules that defined virtual currency exchanges and administrators as money service businesses, bringing them within the jurisdiction of government regulation.
  • In May that year, the DHS froze an account of Mt. Gox – the largest Bitcoin exchange – that was held at Wells Fargo, alleging that it broke anti-money laundering laws.
  • New York’s Department of Financial Services issued subpoenas to 22 emerging payment companies, many of which handled Bitcoin, asking about their measures to prevent money laundering and ensure consumer protection.

[TRANSITION]

  • [CLOSE]
    • Final thoughts/summary COHOST

[OUTRO AND CREDITS]

Transcription

0:00:00.620,0:00:03.520
[Music]

0:00:01.920,0:00:06.560
insightful podcasts

0:00:03.520,0:00:10.080
[Music]

0:00:06.560,0:00:10.080
by informative hosts

0:00:11.040,0:00:20.110
[Music]

0:00:15.200,0:00:22.660
insights into things a podcast network

0:00:20.110,0:00:25.739
[Music]

0:00:22.660,0:00:25.739
[Applause]

0:00:25.760,0:00:31.279
welcome to insights into tomorrow

0:00:28.800,0:00:32.640
where we take a deeper look into how the

0:00:31.279,0:00:35.520
issues of today

0:00:32.640,0:00:37.520
will impact the world of tomorrow from

0:00:35.520,0:00:40.800
politics and world news

0:00:37.520,0:00:42.160
to media and technology we discuss how

0:00:40.800,0:00:59.840
today’s headlines

0:00:42.160,0:00:59.840
are becoming tomorrow’s reality

0:01:00.239,0:01:07.680
welcome to insight into tomorrow this is

0:01:03.280,0:01:09.280
episode 12 the cryptocurrency conundrum

0:01:07.680,0:01:11.600
i’m your host joseph whelan and my

0:01:09.280,0:01:13.600
co-host sam whalen today

0:01:11.600,0:01:15.040
hello everybody how you doing today sam

0:01:13.600,0:01:16.880
i’m doing okay

0:01:15.040,0:01:18.720
so today we’re going to be talking about

0:01:16.880,0:01:20.640
crypto

0:01:18.720,0:01:22.080
do you want any crypto i did for a

0:01:20.640,0:01:22.720
little bit i had dogecoin when that was

0:01:22.080,0:01:25.119
like

0:01:22.720,0:01:26.080
a joke yeah it still is by the way yeah

0:01:25.119,0:01:27.520
but it’s kind of settled

0:01:26.080,0:01:28.799
out because i was using i mean we’ll

0:01:27.520,0:01:30.320
talk about it but i was using robinhood

0:01:28.799,0:01:31.840
to get it yeah and i think

0:01:30.320,0:01:33.520
my friends and i all started doing it as

0:01:31.840,0:01:34.799
a joke um but yeah i had a little bit of

0:01:33.520,0:01:37.360
doj for all not anymore though

0:01:34.799,0:01:40.320
okay doge actually is not that difficult

0:01:37.360,0:01:42.079
to generate it’s not like uh

0:01:40.320,0:01:43.360
your bitcoin and stuff like that where

0:01:42.079,0:01:46.960
it’s uh

0:01:43.360,0:01:48.240
finite and crypto complicated

0:01:46.960,0:01:49.439
yeah i mean i don’t know how many of it

0:01:48.240,0:01:51.360
works so that’s the point of the show

0:01:49.439,0:01:53.119
you’ll explain it to all of us in a

0:01:51.360,0:01:55.759
great detail

0:01:53.119,0:01:57.520
yes i will hopefully in in terms that we

0:01:55.759,0:02:00.799
can all understand

0:01:57.520,0:02:03.600
uh but before we do that i would uh uh

0:02:00.799,0:02:05.600
suggest folks subscribe to the podcast

0:02:03.600,0:02:07.040
itself so you get it first thing on

0:02:05.600,0:02:08.560
monday morning at 8 o’clock when they

0:02:07.040,0:02:10.239
come out

0:02:08.560,0:02:12.400
you can subscribe to the audio version

0:02:10.239,0:02:14.640
of podcast by looking us up as

0:02:12.400,0:02:16.400
insights into tomorrow the video

0:02:14.640,0:02:18.560
versions of the podcast and all of our

0:02:16.400,0:02:19.840
network podcasts are listed as insights

0:02:18.560,0:02:21.920
into things

0:02:19.840,0:02:23.520
you can get us on apple podcast spotify

0:02:21.920,0:02:26.000
google stitcher pretty much any place

0:02:23.520,0:02:28.959
you can get a podcast these days

0:02:26.000,0:02:30.239
i would also invite folks to uh give us

0:02:28.959,0:02:32.760
your feedback

0:02:30.239,0:02:34.560
email us at comments at

0:02:32.760,0:02:36.080
insightsintothings.com let us know how

0:02:34.560,0:02:37.760
we’re doing on twitter at insights

0:02:36.080,0:02:39.879
underscore things

0:02:37.760,0:02:41.360
you can give us feedback on facebook at

0:02:39.879,0:02:44.080
facebook.com slash

0:02:41.360,0:02:45.760
insights into things podcast shoot us a

0:02:44.080,0:02:48.080
note on instagram at

0:02:45.760,0:02:51.800
insights into things or you can reach

0:02:48.080,0:02:54.160
out to us on our website at

0:02:51.800,0:02:56.080
http://www.insightsinthings.com

0:02:54.160,0:02:57.440
so today what we’re going to be doing is

0:02:56.080,0:02:59.360
we’re going to take a look at what

0:02:57.440,0:03:01.200
cryptocurrency is

0:02:59.360,0:03:05.120
we’ll understand a little bit a little

0:03:01.200,0:03:06.239
bit about what blockchain technology is

0:03:05.120,0:03:08.400
then we’re going to take a look at some

0:03:06.239,0:03:11.519
of the real time or real world

0:03:08.400,0:03:13.360
impacts that cryptocurrency is having on

0:03:11.519,0:03:15.040
today’s economy and whether it’s worth

0:03:13.360,0:03:17.120
investing in

0:03:15.040,0:03:19.440
and then finally we’ll wrap up by

0:03:17.120,0:03:20.959
looking at how cryptocurrencies changing

0:03:19.440,0:03:23.120
the world

0:03:20.959,0:03:24.799
and what the future of crypto looks like

0:03:23.120,0:03:26.319
and we’ll talk a little bit about a new

0:03:24.799,0:03:29.519
phenomenon in crypto

0:03:26.319,0:03:29.519
called nft

0:03:30.080,0:03:33.040
so hopefully by the time we get done

0:03:31.440,0:03:35.040
here we’ll all have a good understanding

0:03:33.040,0:03:38.000
of what crypto is and i’ll be dumping

0:03:35.040,0:03:46.159
money into the market to buy something

0:03:38.000,0:03:49.920
shall we get started yes

0:03:46.159,0:03:51.200
so what is crypto so this definition of

0:03:49.920,0:03:53.439
crypto comes from

0:03:51.200,0:03:55.280
nerd wallet figure that’s kind of a safe

0:03:53.439,0:03:57.840
place to go to

0:03:55.280,0:04:00.159
so cryptocurrency or crypto is a digital

0:03:57.840,0:04:01.760
currency that can be used to buy goods

0:04:00.159,0:04:04.560
and services

0:04:01.760,0:04:05.280
but uses an online ledger which string a

0:04:04.560,0:04:07.920
strong

0:04:05.280,0:04:09.840
cryptography to secure online

0:04:07.920,0:04:14.560
transactions

0:04:09.840,0:04:18.239
so when you unlike a a

0:04:14.560,0:04:20.000
a a nationalized currency

0:04:18.239,0:04:22.960
there’s no borders to crypto at this

0:04:20.000,0:04:26.639
point it exists entirely online

0:04:22.960,0:04:27.440
and it’s basically tied up inside of a

0:04:26.639,0:04:30.560
cryptographic

0:04:27.440,0:04:33.120
algorithm much of the interest

0:04:30.560,0:04:34.880
in these unregulated currencies is to

0:04:33.120,0:04:37.600
trade for profit

0:04:34.880,0:04:40.840
with speculators at times driving prices

0:04:37.600,0:04:43.600
skyward as we’ve seen recently with

0:04:40.840,0:04:45.280
bitcoin many companies have issued their

0:04:43.600,0:04:47.600
own currencies

0:04:45.280,0:04:49.440
often called tokens and these can be

0:04:47.600,0:04:52.240
traded specifically for goods or

0:04:49.440,0:04:53.840
services that company provides

0:04:52.240,0:04:56.000
everyone’s familiar with micro

0:04:53.840,0:04:59.040
transactions and nowadays you can

0:04:56.000,0:05:02.479
buy currency

0:04:59.040,0:05:05.199
with a company that you then use to

0:05:02.479,0:05:06.160
buy things inside that company it’s no

0:05:05.199,0:05:07.600
different than when you used to go to

0:05:06.160,0:05:09.360
the arcade

0:05:07.600,0:05:10.960
and the arcade machines didn’t take

0:05:09.360,0:05:12.560
quarters they took tokens so you put a

0:05:10.960,0:05:14.880
dollar bill in a machine and got four

0:05:12.560,0:05:16.960
tokens out instead of four coins

0:05:14.880,0:05:19.039
and that kind of kept that money tied up

0:05:16.960,0:05:22.240
inside of that uh

0:05:19.039,0:05:26.320
that establishment so cryptocurrencies

0:05:22.240,0:05:28.000
also use technology called blockchain

0:05:26.320,0:05:29.520
so we’ll talk about blockchain in a

0:05:28.000,0:05:31.120
second that’s really the driving

0:05:29.520,0:05:34.479
technology behind

0:05:31.120,0:05:38.240
blockchain but part of the appeal

0:05:34.479,0:05:40.080
of cryptocurrency is the security of it

0:05:38.240,0:05:43.759
a lot of people feel

0:05:40.080,0:05:46.400
the anonymity that

0:05:43.759,0:05:47.680
uh cryptocurrency offers is a selling

0:05:46.400,0:05:49.520
point

0:05:47.680,0:05:52.880
because you can go out and make a

0:05:49.520,0:05:55.039
transaction a purchase online somewhere

0:05:52.880,0:05:56.240
and not have that traced back to you

0:05:55.039,0:05:59.600
through

0:05:56.240,0:06:01.120
a paypal account or a credit card or

0:05:59.600,0:06:02.800
something else

0:06:01.120,0:06:05.840
but what people don’t realize is it’s

0:06:02.800,0:06:07.680
not as untraceable as they think it is

0:06:05.840,0:06:09.199
because there is a digital footprint

0:06:07.680,0:06:10.960
there’s a digital

0:06:09.199,0:06:12.639
trail that goes along with it that can

0:06:10.960,0:06:15.039
be traced back to your wallet because

0:06:12.639,0:06:19.440
you have to have a digital wallet

0:06:15.039,0:06:22.319
that you apply these coins to

0:06:19.440,0:06:23.919
so with that in mind questions

0:06:22.319,0:06:26.960
statements

0:06:23.919,0:06:28.960
inquiries no i think uh i think that all

0:06:26.960,0:06:30.880
makes sense i mean my familiarity with

0:06:28.960,0:06:32.479
bitcoin is mostly from um

0:06:30.880,0:06:34.400
the last season of mr robot actually

0:06:32.479,0:06:36.560
which ended a while ago um but in that

0:06:34.400,0:06:39.680
show the economy basically tanks

0:06:36.560,0:06:41.759
and this one company um ecorp

0:06:39.680,0:06:43.360
comes up with e-coin which is basically

0:06:41.759,0:06:44.800
takes the place of physical money so

0:06:43.360,0:06:45.600
everybody has their ecoin wallet on

0:06:44.800,0:06:47.600
their phone

0:06:45.600,0:06:48.639
so i kind of got the concept a little

0:06:47.600,0:06:50.080
bit from that i mean it’s a

0:06:48.639,0:06:52.400
fictionalized portrayal

0:06:50.080,0:06:54.080
but they did their research in terms of

0:06:52.400,0:06:56.400
you know using bitcoin as

0:06:54.080,0:06:58.560
a replacement for physical money sure

0:06:56.400,0:07:02.880
and really i mean

0:06:58.560,0:07:05.280
money is currency itself is anything

0:07:02.880,0:07:07.199
that has a value associated with it that

0:07:05.280,0:07:09.759
you can trade for things

0:07:07.199,0:07:10.800
whether it’s paper money that we have

0:07:09.759,0:07:13.840
whether it’s gold

0:07:10.800,0:07:16.720
coins because the

0:07:13.840,0:07:18.639
uh material that it’s made from has a

0:07:16.720,0:07:21.120
value associated with it

0:07:18.639,0:07:22.880
or nowadays with u.s currency where

0:07:21.120,0:07:24.800
there isn’t a

0:07:22.880,0:07:26.160
a backing to it there’s no silver or

0:07:24.800,0:07:29.520
gold backing to it

0:07:26.160,0:07:31.840
there’s an intrinsic value based on

0:07:29.520,0:07:32.560
the current economic state so as a

0:07:31.840,0:07:34.240
result

0:07:32.560,0:07:36.240
the dollar goes up and down depending on

0:07:34.240,0:07:38.800
what our trade state is and

0:07:36.240,0:07:40.960
other factors in the world

0:07:38.800,0:07:45.599
cryptocurrency is the same sort of

0:07:40.960,0:07:48.400
scenario but it’s affected by things

0:07:45.599,0:07:49.520
very differently like one of the things

0:07:48.400,0:07:53.680
that we’re seeing

0:07:49.520,0:07:54.560
nowadays is um bitcoin is soaring right

0:07:53.680,0:07:57.039
now

0:07:54.560,0:07:58.080
and one of the reasons it it took a

0:07:57.039,0:08:02.639
recent

0:07:58.080,0:08:04.319
jump was tesla elon musk’s company

0:08:02.639,0:08:06.240
uh decided that they’re going to take

0:08:04.319,0:08:08.639
bitcoin payment for cars and they

0:08:06.240,0:08:10.560
invested more than a billion dollars to

0:08:08.639,0:08:14.960
acquire bitcoin

0:08:10.560,0:08:18.400
well any time a commodity is purchased

0:08:14.960,0:08:18.960
in volumes like that the cost of it goes

0:08:18.400,0:08:21.039
up

0:08:18.960,0:08:22.879
just because of the perceived value of

0:08:21.039,0:08:25.280
it at that point

0:08:22.879,0:08:28.080
so you have you have speculative

0:08:25.280,0:08:30.720
investment like that that’s causing

0:08:28.080,0:08:31.120
a rise in value yeah that happened with

0:08:30.720,0:08:32.719
uh

0:08:31.120,0:08:34.159
we talked about dogecoin earlier too

0:08:32.719,0:08:35.680
elon musk would like make a tweet about

0:08:34.159,0:08:37.360
dogecoin and it would shoot up

0:08:35.680,0:08:38.800
like 20 cents or something like that

0:08:37.360,0:08:40.000
sure so like and you get that with

0:08:38.800,0:08:42.159
regular stocks too but

0:08:40.000,0:08:44.080
with crypto it’s even more volatile like

0:08:42.159,0:08:45.680
that well and elon musk is a great

0:08:44.080,0:08:48.320
person to pick on because he’s the type

0:08:45.680,0:08:51.279
of person who

0:08:48.320,0:08:52.880
stock and tesla goes up significantly

0:08:51.279,0:08:53.600
and then he tweets and says oh well

0:08:52.880,0:08:55.279
that’s over

0:08:53.600,0:08:57.120
that’s that’s overvalued and then the

0:08:55.279,0:08:59.600
stock plummets

0:08:57.120,0:09:01.600
and you know when you’re the second

0:08:59.600,0:09:03.519
richest man in the world

0:09:01.600,0:09:04.880
you can stand to lose 40 billion dollars

0:09:03.519,0:09:06.640
and it doesn’t really put a debt in your

0:09:04.880,0:09:10.160
bank account but your other investors

0:09:06.640,0:09:11.839
can’t afford that kind of recklessness

0:09:10.160,0:09:13.760
and that volatility in a stock that

0:09:11.839,0:09:16.160
they’re investing in

0:09:13.760,0:09:18.000
and and we’ll talk later about the

0:09:16.160,0:09:21.040
investment angle of bitcoin

0:09:18.000,0:09:21.760
and cryptocurrency but we’re going to

0:09:21.040,0:09:23.519
find

0:09:21.760,0:09:25.279
that’s the same type of thing with

0:09:23.519,0:09:27.440
crypto

0:09:25.279,0:09:29.680
so the technology that is based on is

0:09:27.440,0:09:31.440
blockchain

0:09:29.680,0:09:34.640
now this information comes from another

0:09:31.440,0:09:37.200
website investopedia.com

0:09:34.640,0:09:39.519
blockchain is a decentralized technology

0:09:37.200,0:09:42.720
spread across many computers

0:09:39.519,0:09:45.040
that manages and records transactions

0:09:42.720,0:09:46.480
blockchain is a specific type of

0:09:45.040,0:09:49.360
database

0:09:46.480,0:09:51.279
it differs from a typical database in

0:09:49.360,0:09:54.160
the way it stores information

0:09:51.279,0:09:54.560
blockchain stored data in blocks that

0:09:54.160,0:09:56.800
are then

0:09:54.560,0:09:58.880
chained together blockchain i get

0:09:56.800,0:10:01.360
blockchain

0:09:58.880,0:10:03.519
once a block is filled with data it’s

0:10:01.360,0:10:05.519
chained onto the previous block

0:10:03.519,0:10:08.640
which makes the data chained together in

0:10:05.519,0:10:10.000
a chronological order so

0:10:08.640,0:10:14.240
one of the problems that you have with

0:10:10.000,0:10:17.440
this is that as you continue to mine

0:10:14.240,0:10:20.000
coin in a blockchain the blockchain gets

0:10:17.440,0:10:22.000
larger and larger and larger

0:10:20.000,0:10:23.839
which requires more storage capacity

0:10:22.000,0:10:26.959
requires more bandwidth to handle

0:10:23.839,0:10:30.640
requires more computing power as that as

0:10:26.959,0:10:30.640
it gets progressively larger

0:10:30.880,0:10:34.560
different types of information can be

0:10:32.560,0:10:36.480
stored on a blockchain but the most

0:10:34.560,0:10:39.600
common use so far has been

0:10:36.480,0:10:42.240
as a ledger for these transactions in

0:10:39.600,0:10:45.360
bitcoin’s case blockchain is used

0:10:42.240,0:10:46.079
in a decentralized way so that no single

0:10:45.360,0:10:48.959
person or

0:10:46.079,0:10:51.440
group has control rather all users

0:10:48.959,0:10:55.120
collectively retain control

0:10:51.440,0:10:58.560
so when you’re going to mine bitcoin

0:10:55.120,0:11:01.760
you download whatever the current

0:10:58.560,0:11:03.279
version of that blockchain is the entire

0:11:01.760,0:11:05.120
thing

0:11:03.279,0:11:06.880
and as you’re churning through it you

0:11:05.120,0:11:09.360
fill up the block itself

0:11:06.880,0:11:10.320
you’re sending that data back out to

0:11:09.360,0:11:12.079
this

0:11:10.320,0:11:13.360
collection of computers so when we’re

0:11:12.079,0:11:14.079
talking about downloading it is this

0:11:13.360,0:11:15.519
like

0:11:14.079,0:11:17.120
terabytes pentabytes i don’t know how

0:11:15.519,0:11:18.720
big does it get uh

0:11:17.120,0:11:20.880
i don’t know what the last count was but

0:11:18.720,0:11:21.680
you’re talking a massive amount of data

0:11:20.880,0:11:24.480
right now like

0:11:21.680,0:11:26.640
like it would take i i think i was

0:11:24.480,0:11:28.880
looking at numbers earlier and it took

0:11:26.640,0:11:31.040
eight hours or so over a gigabit line to

0:11:28.880,0:11:32.800
download the current one

0:11:31.040,0:11:35.360
um once you have it though you’ll get

0:11:32.800,0:11:37.440
incremental updates to it

0:11:35.360,0:11:39.839
but that’s just a sign of how large this

0:11:37.440,0:11:43.279
is and the larger it is

0:11:39.839,0:11:44.640
the more computations have to be done

0:11:43.279,0:11:46.640
so the problem a lot of people are

0:11:44.640,0:11:50.320
running into

0:11:46.640,0:11:52.959
is that in order to mine bitcoin now

0:11:50.320,0:11:54.079
people are using very sophisticated

0:11:52.959,0:11:55.920
hardware

0:11:54.079,0:11:57.120
in fact nvidia just came out with their

0:11:55.920,0:12:00.560
latest line of

0:11:57.120,0:12:03.680
video cards and they cryptographically

0:12:00.560,0:12:05.519
crippled them through a driver update so

0:12:03.680,0:12:06.639
they couldn’t be used for blockchain

0:12:05.519,0:12:07.440
because what’s happening is you’re

0:12:06.639,0:12:11.040
actually

0:12:07.440,0:12:11.839
burning more energy in computational

0:12:11.040,0:12:14.880
power and

0:12:11.839,0:12:16.399
cooling to run these machines than

0:12:14.880,0:12:21.360
you’re generating in actual

0:12:16.399,0:12:21.360
funds so it’s

0:12:22.839,0:12:25.839
environmentally

0:12:26.079,0:12:32.240
environmentally it’s not a good thing

0:12:30.079,0:12:33.839
i mean we’re not drilling another hole

0:12:32.240,0:12:36.839
in the ozone or anything but this is not

0:12:33.839,0:12:39.680
going down the right path

0:12:36.839,0:12:41.920
um so

0:12:39.680,0:12:45.279
in bitcoin’s case the blockchain is used

0:12:41.920,0:12:46.959
as a way to store

0:12:45.279,0:12:48.720
the the ledger on here and the

0:12:46.959,0:12:50.880
decentralized blockchains are

0:12:48.720,0:12:52.959
themselves immutable which means that

0:12:50.880,0:12:55.120
once the data is entered it can’t be

0:12:52.959,0:12:56.399
changed

0:12:55.120,0:12:58.720
and for bitcoin this means that

0:12:56.399,0:13:01.920
transactions are permanently recorded

0:12:58.720,0:13:03.519
and viewable to anyone and that’s where

0:13:01.920,0:13:06.560
that

0:13:03.519,0:13:09.519
lack of anonymity comes from

0:13:06.560,0:13:10.880
because in order for this whole system

0:13:09.519,0:13:13.760
to work

0:13:10.880,0:13:15.760
you have to use a shared database for

0:13:13.760,0:13:19.040
these transactions

0:13:15.760,0:13:20.079
now your existence in here is probably

0:13:19.040,0:13:23.040
some

0:13:20.079,0:13:23.839
you know 64 character long random good

0:13:23.040,0:13:26.880
number

0:13:23.839,0:13:29.920
not you know sam

0:13:26.880,0:13:32.720
so there’s that level of anonymity

0:13:29.920,0:13:34.000
but it also records origins of these so

0:13:32.720,0:13:36.079
it can tell

0:13:34.000,0:13:37.519
geographically by your ip address where

0:13:36.079,0:13:39.360
it’s coming from

0:13:37.519,0:13:41.440
so when you process something on the

0:13:39.360,0:13:43.760
blockchain it knows

0:13:41.440,0:13:44.480
what your id is might not know who you

0:13:43.760,0:13:47.360
are

0:13:44.480,0:13:49.279
but it can see where you’re at so a lot

0:13:47.360,0:13:51.839
of

0:13:49.279,0:13:54.399
cyber forensic analysis is going into

0:13:51.839,0:13:56.720
some of these because a lot of people

0:13:54.399,0:13:57.839
in the criminal underworld are using

0:13:56.720,0:13:59.920
bitcoin

0:13:57.839,0:14:02.079
to fund their terrorist organizations

0:13:59.920,0:14:05.199
and criminal organizations

0:14:02.079,0:14:06.240
because of that level of security so as

0:14:05.199,0:14:08.079
a result

0:14:06.240,0:14:09.199
federal authorities and government

0:14:08.079,0:14:11.079
authorities around the world are

0:14:09.199,0:14:12.720
developing new tools to try to

0:14:11.079,0:14:15.120
de-anonymize

0:14:12.720,0:14:16.720
some of these transactions to to track

0:14:15.120,0:14:18.240
it down so that they can

0:14:16.720,0:14:19.760
they can generate evidence against

0:14:18.240,0:14:22.480
criminals

0:14:19.760,0:14:24.079
so that’s really what blockchain is it’s

0:14:22.480,0:14:25.399
the technology behind it’s the database

0:14:24.079,0:14:28.959
behind

0:14:25.399,0:14:30.639
cryptocurrency questions comments

0:14:28.959,0:14:32.880
no i mean it seems relatively

0:14:30.639,0:14:34.959
straightforward so far um

0:14:32.880,0:14:36.800
yeah so how do my only thing is like how

0:14:34.959,0:14:38.480
does this translate into actual value

0:14:36.800,0:14:40.720
because like i understand how you get it

0:14:38.480,0:14:42.880
and how it’s made but like is it just

0:14:40.720,0:14:44.480
because it’s there’s so much of it that

0:14:42.880,0:14:46.399
it gives it value

0:14:44.480,0:14:48.240
it’s it’s not that there’s so much it’s

0:14:46.399,0:14:50.160
that there’s so little

0:14:48.240,0:14:52.399
um so for instance if you look at

0:14:50.160,0:14:55.519
bitcoin

0:14:52.399,0:14:59.199
the way that you you compute

0:14:55.519,0:15:02.800
the um or the way that you mine

0:14:59.199,0:15:06.000
bitcoin computationally there’s a finite

0:15:02.800,0:15:09.040
number of bitcoins that are out there

0:15:06.000,0:15:10.959
and the more that are found the fewer

0:15:09.040,0:15:12.720
that can be found

0:15:10.959,0:15:14.079
so it’s almost like think of it like a

0:15:12.720,0:15:17.040
baseball card

0:15:14.079,0:15:18.000
you know 10 ricky henderson rookies are

0:15:17.040,0:15:20.079
made

0:15:18.000,0:15:21.680
that’s all that will ever be made and

0:15:20.079,0:15:23.360
they’re all in packages that are sitting

0:15:21.680,0:15:26.000
in stores

0:15:23.360,0:15:26.880
so when the first one gets purchased

0:15:26.000,0:15:29.600
it’s worth

0:15:26.880,0:15:31.360
say a thousand dollars when the second

0:15:29.600,0:15:33.360
one gets purchased

0:15:31.360,0:15:34.880
you know that there’s only eight more

0:15:33.360,0:15:35.519
out there so the value of the ones that

0:15:34.880,0:15:38.720
are found

0:15:35.519,0:15:40.800
go up until all ten are found and then

0:15:38.720,0:15:42.480
there’s a fixed value because

0:15:40.800,0:15:44.160
they exist they’re the only ones that

0:15:42.480,0:15:45.839
are going to exist so that’s why you

0:15:44.160,0:15:48.480
have tesla getting a bunch of it

0:15:45.839,0:15:49.279
exactly skyrockets the problem that you

0:15:48.480,0:15:52.399
run into

0:15:49.279,0:15:56.079
is as people traded

0:15:52.399,0:15:57.360
and buy and sell and and companies start

0:15:56.079,0:16:00.880
to adopt it as a

0:15:57.360,0:16:03.839
actual currency it gets

0:16:00.880,0:16:05.680
more precious because you have a finite

0:16:03.839,0:16:06.399
pool of resources now that are now being

0:16:05.680,0:16:08.160
traded

0:16:06.399,0:16:10.079
in large blocks so people fight over it

0:16:08.160,0:16:12.399
and then exactly

0:16:10.079,0:16:14.000
then you have organ you have governments

0:16:12.399,0:16:15.279
like for instance russia has outlawed

0:16:14.000,0:16:17.440
bitcoin

0:16:15.279,0:16:18.880
so you can’t use bitcoin in russia to do

0:16:17.440,0:16:22.000
anything we’re in the united states i

0:16:18.880,0:16:24.480
could spend bitcoin to buy a pizza you

0:16:22.000,0:16:26.880
know it’s it’s literally that simple

0:16:24.480,0:16:28.320
and in the early days of bitcoin it was

0:16:26.880,0:16:32.079
used

0:16:28.320,0:16:33.759
very frivolously it was generated a lot

0:16:32.079,0:16:35.040
on colleges because a lot of college

0:16:33.759,0:16:36.959
students would use

0:16:35.040,0:16:38.480
computers on campus because of the

0:16:36.959,0:16:41.199
computational power

0:16:38.480,0:16:42.000
to generate these so you’d have students

0:16:41.199,0:16:43.360
that would have

0:16:42.000,0:16:45.600
10 bitcoins that would generate

0:16:43.360,0:16:47.440
overnight then they’d want to order

0:16:45.600,0:16:49.199
pizza well they didn’t have any cash

0:16:47.440,0:16:50.480
so the local pizzeria would accept

0:16:49.199,0:16:52.160
bitcoin

0:16:50.480,0:16:55.120
so you’d spend two bitcoin to buy a

0:16:52.160,0:16:56.399
pizza and one bitcoin now is worth like

0:16:55.120,0:16:58.639
ten thousand dollars or something like

0:16:56.399,0:17:00.639
that right so you have people that spent

0:16:58.639,0:17:02.480
over twenty thousand dollars on pizzas

0:17:00.639,0:17:05.839
when they were in college

0:17:02.480,0:17:09.520
so that’s why the volatility of it

0:17:05.839,0:17:13.360
kind of makes for opportunities

0:17:09.520,0:17:16.480
but it also makes for misuse of

0:17:13.360,0:17:17.839
the currency as well so we’re going to

0:17:16.480,0:17:19.199
take a quick break

0:17:17.839,0:17:21.600
and we’ll come back and we’ll talk about

0:17:19.199,0:17:23.170
what the impact of cryptocurrency is on

0:17:21.600,0:17:31.360
today’s society

0:17:23.170,0:17:33.760
[Music]

0:17:31.360,0:17:35.440
insights into entertainment a podcast

0:17:33.760,0:17:37.830
series taking a deeper look

0:17:35.440,0:17:39.280
into entertainment and media

0:17:37.830,0:17:41.520
[Music]

0:17:39.280,0:17:42.320
our husband and wife team of pop culture

0:17:41.520,0:17:44.640
fanatics

0:17:42.320,0:17:45.360
are exploring all things from music and

0:17:44.640,0:17:47.420
movies

0:17:45.360,0:17:49.280
to television and fandom

0:17:47.420,0:17:50.880
[Music]

0:17:49.280,0:17:53.350
we’ll look at the interesting and

0:17:50.880,0:17:55.200
obscure entertainment news of the week

0:17:53.350,0:17:57.200
[Music]

0:17:55.200,0:17:58.640
we’ll talk about theme park and pop

0:17:57.200,0:18:00.559
culture news

0:17:58.640,0:18:03.280
we’ll give you the latest and greatest

0:18:00.559,0:18:05.600
on pop culture conventions

0:18:03.280,0:18:09.200
we’ll give you a deep dive into disney

0:18:05.600,0:18:09.200
star wars and much more

0:18:09.919,0:18:13.280
check out our video episodes at

0:18:12.120,0:18:16.880
youtube.com

0:18:13.280,0:18:17.600
backslash insights into things our audio

0:18:16.880,0:18:21.520
episodes

0:18:17.600,0:18:24.160
at podcast.insightsintoentertainment.com

0:18:21.520,0:18:28.380
or check us out on the web at insights

0:18:24.160,0:18:33.219
into things.com

0:18:28.380,0:18:33.219
[Music]

0:18:34.480,0:18:38.400
today on insights into tomorrow i find

0:18:37.039,0:18:38.880
the button on the board to actually hit

0:18:38.400,0:18:42.240
the right

0:18:38.880,0:18:43.679
scene today we’re talking about

0:18:42.240,0:18:45.840
cryptocurrency and we’re going to talk a

0:18:43.679,0:18:49.039
little bit about the impact

0:18:45.840,0:18:51.039
of cryptocurrency on today’s economy

0:18:49.039,0:18:53.280
so we’ve talked about bitcoin we’ve

0:18:51.039,0:18:55.600
talked about dogecoin a little bit

0:18:53.280,0:18:57.200
there’s actually more than 6 700

0:18:55.600,0:18:59.280
different cryptocurrencies that are

0:18:57.200,0:19:01.880
traded publicly today

0:18:59.280,0:19:04.240
and this is according according to

0:19:01.880,0:19:06.880
coinmarketcamp.com

0:19:04.240,0:19:08.799
cryptocurrencies continue to proliferate

0:19:06.880,0:19:11.039
raising money through initial coin

0:19:08.799,0:19:13.440
offerings you’ve heard of ipos initial

0:19:11.039,0:19:16.480
public offerings for stocks

0:19:13.440,0:19:18.559
icos are what crypto coins actually use

0:19:16.480,0:19:21.200
to generate their funds

0:19:18.559,0:19:22.880
the total value of all cryptocurrencies

0:19:21.200,0:19:26.960
as of february 18

0:19:22.880,0:19:29.120
2021 was more than 1.6 trillion dollars

0:19:26.960,0:19:31.840
according to coin market cap

0:19:29.120,0:19:32.240
and the total value of all bitcoins the

0:19:31.840,0:19:34.320
most

0:19:32.240,0:19:39.679
popular digital currency was pegged at

0:19:34.320,0:19:43.200
about 969 billion dollars

0:19:39.679,0:19:45.679
now you can’t have that much market cap

0:19:43.200,0:19:48.480
and not have a huge influence over

0:19:45.679,0:19:48.480
the economy

0:19:48.880,0:19:54.160
i mean i i can’t it’s hard for me to

0:19:51.120,0:19:54.160
imagine another

0:19:54.240,0:19:58.720
segment of the economy other than like

0:19:56.640,0:20:01.280
apple that’s a trillion dollar company

0:19:58.720,0:20:02.480
that has that kind of influence over it

0:20:01.280,0:20:05.280
um so just that

0:20:02.480,0:20:06.400
that value alone gives you a footprint

0:20:05.280,0:20:09.919
and a

0:20:06.400,0:20:11.200
and a place at the table that countries

0:20:09.919,0:20:14.880
i mean that’s that’s

0:20:11.200,0:20:15.280
more value than most countries in the

0:20:14.880,0:20:17.360
world

0:20:15.280,0:20:18.880
actually have as far as value goes what

0:20:17.360,0:20:20.320
are your thoughts on that

0:20:18.880,0:20:22.320
i mean that’s an astounding amount of

0:20:20.320,0:20:23.520
wealth and like going back to the pizza

0:20:22.320,0:20:25.520
analogy from earlier

0:20:23.520,0:20:28.240
like to think that it’s come from that

0:20:25.520,0:20:31.600
you know using it to get a pizza to

0:20:28.240,0:20:33.760
969 billion dollars in what 20 years

0:20:31.600,0:20:35.760
yeah not even that yeah less than that

0:20:33.760,0:20:36.480
um it’s just interesting and and stocks

0:20:35.760,0:20:38.080
in general

0:20:36.480,0:20:39.440
or the market how that works it all kind

0:20:38.080,0:20:41.200
of mystifies me it seems like it’s

0:20:39.440,0:20:43.840
gambling with extra steps

0:20:41.200,0:20:45.520
and like um how things get value and in

0:20:43.840,0:20:46.640
this case how things can skyrocket in

0:20:45.520,0:20:49.440
value over time

0:20:46.640,0:20:50.480
it uh it fascinates me but it’s not

0:20:49.440,0:20:52.080
something i

0:20:50.480,0:20:53.520
have any idea how to get involved in

0:20:52.080,0:20:55.280
well and that’s one other thing that’s

0:20:53.520,0:20:57.440
one of the real distinguishing factors

0:20:55.280,0:20:58.799
between a cryptocurrency and a stock a

0:20:57.440,0:21:00.320
stock

0:20:58.799,0:21:02.080
is a piece of something it’s a piece of

0:21:00.320,0:21:05.919
a company and

0:21:02.080,0:21:07.280
its value is based on the value of that

0:21:05.919,0:21:10.799
company

0:21:07.280,0:21:12.720
its revenue its its profit

0:21:10.799,0:21:14.559
and how that company is being run and

0:21:12.720,0:21:17.039
all that information

0:21:14.559,0:21:18.799
when you’re a publicly traded company is

0:21:17.039,0:21:20.640
publicly available

0:21:18.799,0:21:22.640
so you want to go do the research on

0:21:20.640,0:21:25.760
intel and see

0:21:22.640,0:21:26.960
how much intel is worth you can see what

0:21:25.760,0:21:29.360
their

0:21:26.960,0:21:31.120
assets are what their liabilities are

0:21:29.360,0:21:33.280
what their profits are

0:21:31.120,0:21:34.720
what contracts they’ve landed over the

0:21:33.280,0:21:36.480
last 12 months

0:21:34.720,0:21:38.240
you can do all that research and find

0:21:36.480,0:21:40.240
all that information

0:21:38.240,0:21:41.919
and and largely that’s what you know

0:21:40.240,0:21:43.919
analysts and stock brokers do

0:21:41.919,0:21:46.480
for you they do all that work for you

0:21:43.919,0:21:49.520
and come back and say okay

0:21:46.480,0:21:50.880
buy intel because they’re worth it

0:21:49.520,0:21:53.760
but you have the freedom to go get that

0:21:50.880,0:21:55.840
information yourself and do it

0:21:53.760,0:21:57.600
you lack that information for the most

0:21:55.840,0:22:01.520
part when it comes to crypto

0:21:57.600,0:22:05.360
i mean crypto isn’t

0:22:01.520,0:22:08.880
representative of anything substantial

0:22:05.360,0:22:10.799
it’s literally data that’s being passed

0:22:08.880,0:22:12.799
around

0:22:10.799,0:22:14.480
and a lot of people have a very

0:22:12.799,0:22:17.039
difficult time wrapping their heads

0:22:14.480,0:22:17.039
around that

0:22:17.760,0:22:21.440
it’s hard to understand why you would

0:22:19.440,0:22:25.039
need something like that

0:22:21.440,0:22:26.880
granite you you can have a currency that

0:22:25.039,0:22:30.240
doesn’t have borders

0:22:26.880,0:22:33.760
so for instance you know you have

0:22:30.240,0:22:35.840
the euro versus the dollar and the euro

0:22:33.760,0:22:37.600
traditionally trends

0:22:35.840,0:22:39.760
a few cents higher in value than the

0:22:37.600,0:22:40.000
dollar does depending on what’s going on

0:22:39.760,0:22:43.600
from

0:22:40.000,0:22:46.799
a political geopolitical standpoint

0:22:43.600,0:22:50.559
but that currency itself

0:22:46.799,0:22:54.000
is based on gross domestic product

0:22:50.559,0:22:56.400
it’s based on

0:22:54.000,0:22:58.480
manufacturing output there’s a

0:22:56.400,0:22:59.840
measurable metric that you can look at

0:22:58.480,0:23:02.080
for it

0:22:59.840,0:23:03.840
so you can kind of predict okay well you

0:23:02.080,0:23:05.600
know we know that

0:23:03.840,0:23:06.960
everyone’s being hit by the pandemic

0:23:05.600,0:23:10.320
right now

0:23:06.960,0:23:12.000
and europe sections of europe are being

0:23:10.320,0:23:16.000
hit worse than others

0:23:12.000,0:23:18.159
so the chances are their their

0:23:16.000,0:23:20.080
uh economy is going to be impacted by

0:23:18.159,0:23:22.640
that further

0:23:20.080,0:23:24.559
so maybe now is not a good time and i’m

0:23:22.640,0:23:25.200
saying this strictly from a theoretical

0:23:24.559,0:23:28.480
standpoint

0:23:25.200,0:23:29.360
i am not a investment broker or am i

0:23:28.480,0:23:32.480
qualified to

0:23:29.360,0:23:35.360
comment on any of this stuff

0:23:32.480,0:23:36.080
but you can see these signs these trends

0:23:35.360,0:23:38.240
and determine

0:23:36.080,0:23:40.320
that that might not be the investment

0:23:38.240,0:23:43.520
that you want because the euro may go

0:23:40.320,0:23:46.400
down as their economy is impacted

0:23:43.520,0:23:48.480
you can’t do that with bitcoin tomorrow

0:23:46.400,0:23:51.600
bitcoin could lose 30 percent

0:23:48.480,0:23:52.720
for no apparent reason or it could gain

0:23:51.600,0:23:55.600
30

0:23:52.720,0:23:55.919
for equally no reason volatile that is

0:23:55.600,0:24:01.360
that

0:23:55.919,0:24:04.320
is incredibly volatile so why do people

0:24:01.360,0:24:05.600
like cryptocurrency why don’t you why

0:24:04.320,0:24:08.880
don’t you tell us

0:24:05.600,0:24:10.960
you know why people what

0:24:08.880,0:24:13.279
what the appeal of cryptocurrency is

0:24:10.960,0:24:14.480
yeah so supporters see cryptocurrency uh

0:24:13.279,0:24:16.320
things like bitcoin

0:24:14.480,0:24:18.240
as a currency of the future uh and

0:24:16.320,0:24:19.919
they’re racing to buy them now

0:24:18.240,0:24:21.279
before they become more valuable which

0:24:19.919,0:24:22.799
we’ve already seen that with

0:24:21.279,0:24:24.640
going from buying pizzas to being worth

0:24:22.799,0:24:26.159
you know 900 some billion dollars

0:24:24.640,0:24:28.640
uh some supporters like the fact that

0:24:26.159,0:24:30.400
crypto removes central banks

0:24:28.640,0:24:31.919
uh from managing the money supply since

0:24:30.400,0:24:33.440
over time these banks tend to reduce the

0:24:31.919,0:24:35.200
value of money through inflation so

0:24:33.440,0:24:37.520
bitcoin can’t be inflated

0:24:35.200,0:24:39.120
the way normal money can other

0:24:37.520,0:24:40.080
supporters like the technology behind

0:24:39.120,0:24:41.279
crypto

0:24:40.080,0:24:43.440
like the blockchain which we talked

0:24:41.279,0:24:45.440
about earlier because it’s decentralized

0:24:43.440,0:24:48.080
processing and recording system

0:24:45.440,0:24:49.279
and can be more secure uh than usual

0:24:48.080,0:24:50.880
payment options

0:24:49.279,0:24:52.960
and then finally some speculators like

0:24:50.880,0:24:54.480
crypto because they’re going up in value

0:24:52.960,0:24:56.159
and have no interest in the currency’s

0:24:54.480,0:24:57.200
long term acceptance as a way to move

0:24:56.159,0:24:59.120
money

0:24:57.200,0:25:00.559
and that’s a very good point is that if

0:24:59.120,0:25:03.200
you look at it from a long-term

0:25:00.559,0:25:03.200
standpoint

0:25:03.279,0:25:06.559
it’s so volatile and traded so

0:25:05.679,0:25:07.919
frequently that

0:25:06.559,0:25:10.400
people aren’t looking at it as a

0:25:07.919,0:25:12.400
long-term like people buy disney stock

0:25:10.400,0:25:13.520
and they hold on the disney stock for 30

0:25:12.400,0:25:16.159
years

0:25:13.520,0:25:17.360
and they continue to to improve increase

0:25:16.159,0:25:19.440
in value

0:25:17.360,0:25:21.360
they may get dividends from it but

0:25:19.440,0:25:22.960
ultimately it’s a long-term thing that

0:25:21.360,0:25:24.559
someday you’ll sell that and it’s an

0:25:22.960,0:25:27.200
investment

0:25:24.559,0:25:28.080
whereas cryptocurrency is almost like

0:25:27.200,0:25:30.000
day trading

0:25:28.080,0:25:31.360
yeah i’m buying it this morning because

0:25:30.000,0:25:32.799
i know this afternoon

0:25:31.360,0:25:33.919
chances are it’s going to be 30 percent

0:25:32.799,0:25:35.039
higher and i’m going to make a 40.

0:25:33.919,0:25:36.159
that’s that’s essentially what i was

0:25:35.039,0:25:37.440
doing me and my friends when i talked

0:25:36.159,0:25:37.919
about dogecoin oh that’s what we would

0:25:37.440,0:25:40.320
do

0:25:37.919,0:25:41.679
we bought it and then for like a week

0:25:40.320,0:25:43.039
straight we would check every day to see

0:25:41.679,0:25:43.440
what the value was and if and you could

0:25:43.039,0:25:45.120
set

0:25:43.440,0:25:46.960
in the app we were using you could set

0:25:45.120,0:25:50.000
um it was called a limit order

0:25:46.960,0:25:51.679
so like if dogecoin went up to 80 cents

0:25:50.000,0:25:53.200
you could have it sell then right so

0:25:51.679,0:25:54.559
like if we thought like you know elon

0:25:53.200,0:25:55.679
musk was going to tweet about it and it

0:25:54.559,0:25:56.240
would make it go up in value which

0:25:55.679,0:25:57.600
happened

0:25:56.240,0:25:59.039
a lot of people made a lot of money when

0:25:57.600,0:25:59.760
dogecoin like when that phenomenon was

0:25:59.039,0:26:02.320
happening sure

0:25:59.760,0:26:03.919
it’s kind of stabled out now but like it

0:26:02.320,0:26:05.600
was like day trading and

0:26:03.919,0:26:07.520
and you know robin hood i know got a lot

0:26:05.600,0:26:08.799
of flack for that because so much money

0:26:07.520,0:26:09.520
was being dumped in that they couldn’t

0:26:08.799,0:26:10.960
keep up with it

0:26:09.520,0:26:13.039
i think those that finally came out a

0:26:10.960,0:26:15.120
couple days ago where

0:26:13.039,0:26:16.240
the way robinhood works is they when you

0:26:15.120,0:26:17.200
go into

0:26:16.240,0:26:18.960
uh and for those that don’t know

0:26:17.200,0:26:21.039
robinhood is an app where you can you

0:26:18.960,0:26:23.360
know trade stocks and trade crypto

0:26:21.039,0:26:25.039
um they when you go to buy something

0:26:23.360,0:26:27.279
through them they actually want

0:26:25.039,0:26:29.039
and basically give you an iou so that if

0:26:27.279,0:26:30.320
they can get a better value for it

0:26:29.039,0:26:32.240
they can then take that and then you

0:26:30.320,0:26:32.559
also get the stock they take the off the

0:26:32.240,0:26:35.120
top

0:26:32.559,0:26:36.960
right but when the things with dogecoin

0:26:35.120,0:26:37.440
was happening so many people were buying

0:26:36.960,0:26:39.200
in

0:26:37.440,0:26:41.039
and with gamestop as well the gamestop

0:26:39.200,0:26:42.240
stock situation they didn’t have enough

0:26:41.039,0:26:44.400
money to keep up

0:26:42.240,0:26:45.279
so it’s like you know when when the

0:26:44.400,0:26:47.679
trend hits

0:26:45.279,0:26:48.720
the whole world and everybody’s doing it

0:26:47.679,0:26:50.559
like day trading

0:26:48.720,0:26:52.000
it can [ __ ] something like robinhood

0:26:50.559,0:26:54.159
that’s just you know the apt to

0:26:52.000,0:26:57.440
demonstrate most yeah their their their

0:26:54.159,0:26:59.840
business model was not capable of

0:26:57.440,0:27:01.120
um but one of the other things about

0:26:59.840,0:27:03.520
crypto

0:27:01.120,0:27:05.440
that we talk about here is that it it

0:27:03.520,0:27:07.440
doesn’t use a centralized bank

0:27:05.440,0:27:08.799
which means it means it can’t be

0:27:07.440,0:27:11.840
influenced

0:27:08.799,0:27:14.640
by governments or government regulation

0:27:11.840,0:27:16.480
so you look at how some of the economy

0:27:14.640,0:27:18.399
works in the united states and you’ve

0:27:16.480,0:27:20.559
got

0:27:18.399,0:27:22.799
the federal trade commission that makes

0:27:20.559,0:27:25.520
sure that there’s no insider training

0:27:22.799,0:27:26.320
and and that things are done on the up

0:27:25.520,0:27:28.960
and up

0:27:26.320,0:27:29.360
you have uh the federal reserve that

0:27:28.960,0:27:32.880
sets

0:27:29.360,0:27:33.760
interest rates so with a traditional

0:27:32.880,0:27:37.279
economy

0:27:33.760,0:27:40.320
you have a lot of outside influence it’s

0:27:37.279,0:27:42.559
not just the market value

0:27:40.320,0:27:44.480
a lot of it is the government trying to

0:27:42.559,0:27:46.399
control the money

0:27:44.480,0:27:48.159
part of that’s inflation you know when

0:27:46.399,0:27:50.399
the economy is bad the

0:27:48.159,0:27:52.640
government puts more currency into

0:27:50.399,0:27:55.120
circulation which devalues the currency

0:27:52.640,0:27:58.000
but increases spending

0:27:55.120,0:27:59.200
and with a cryptocurrency they don’t

0:27:58.000,0:28:00.640
have that control

0:27:59.200,0:28:02.880
which is one of the reasons why russia

0:28:00.640,0:28:05.120
had banned bitcoin

0:28:02.880,0:28:06.720
because bitcoin could really come in and

0:28:05.120,0:28:09.039
take over an economy because the

0:28:06.720,0:28:11.840
government has no control over

0:28:09.039,0:28:13.760
so a lot of governments don’t understand

0:28:11.840,0:28:15.360
crypto yet and those that do

0:28:13.760,0:28:17.840
and have kind of a good understanding of

0:28:15.360,0:28:20.720
it are kind of afraid of it

0:28:17.840,0:28:20.720
and with good reason

0:28:22.399,0:28:25.440
one of the other things that we talk

0:28:23.919,0:28:28.720
about here is

0:28:25.440,0:28:31.600
the encryption associated with it

0:28:28.720,0:28:32.960
well that encryption allows you to hide

0:28:31.600,0:28:35.200
transactions

0:28:32.960,0:28:36.799
so right now we’ve got a big push in in

0:28:35.200,0:28:40.000
the united states

0:28:36.799,0:28:43.600
where the federal government wants to

0:28:40.000,0:28:46.320
have access to encrypted data

0:28:43.600,0:28:48.320
on your phone in your email through your

0:28:46.320,0:28:50.399
social media

0:28:48.320,0:28:52.240
because they claim that without that

0:28:50.399,0:28:55.600
then they can’t do their job

0:28:52.240,0:28:57.600
from a law enforcement perspective

0:28:55.600,0:28:59.360
so the federal government wants access

0:28:57.600,0:29:00.240
to your encrypted information on your

0:28:59.360,0:29:02.559
phone so

0:29:00.240,0:29:03.919
if they get a warrant for a search

0:29:02.559,0:29:05.679
warrant

0:29:03.919,0:29:07.039
they can execute it where they can’t do

0:29:05.679,0:29:08.320
that now

0:29:07.039,0:29:10.240
well they’ll never be able to do that

0:29:08.320,0:29:13.440
with cryptocurrency they can’t go

0:29:10.240,0:29:16.480
to a manufacturer like apple

0:29:13.440,0:29:18.320
or google and say put a backdoor in or

0:29:16.480,0:29:21.440
we’re going to put you out of business

0:29:18.320,0:29:26.159
there’s no central authority for bitcoin

0:29:21.440,0:29:28.799
so they can’t exercise that control

0:29:26.159,0:29:30.080
and as a result it’s very appealing to a

0:29:28.799,0:29:32.159
lot of people who want to do

0:29:30.080,0:29:34.320
international transactions

0:29:32.159,0:29:35.279
you know when we do transactions with a

0:29:34.320,0:29:38.320
company

0:29:35.279,0:29:39.360
overseas there’s a conversion rate that

0:29:38.320,0:29:42.080
happens

0:29:39.360,0:29:43.520
and that conversion makes money for

0:29:42.080,0:29:46.240
someone some

0:29:43.520,0:29:49.120
money broker somewhere skims off the top

0:29:46.240,0:29:52.720
like you talked about with robinhood

0:29:49.120,0:29:54.559
with bitcoin it’s traded at face value

0:29:52.720,0:29:56.720
nobody skims off the top nobody makes a

0:29:54.559,0:29:58.399
profit off of it and generally when no

0:29:56.720,0:30:00.480
one’s making a profit off of a

0:29:58.399,0:30:03.600
transaction

0:30:00.480,0:30:05.120
people have a problem with that yeah so

0:30:03.600,0:30:07.200
you can’t have that man in the middle

0:30:05.120,0:30:09.360
who’s doing things

0:30:07.200,0:30:10.399
um but again cryptocurrencies are

0:30:09.360,0:30:12.480
speculative

0:30:10.399,0:30:13.600
there’s no there’s nothing tangible

0:30:12.480,0:30:16.720
about

0:30:13.600,0:30:19.919
a cryptocurrency that says okay well i

0:30:16.720,0:30:21.520
see that tesla put out uh 20

0:30:19.919,0:30:23.360
more cars this year than they had

0:30:21.520,0:30:23.840
forecast so their value is going to go

0:30:23.360,0:30:26.320
up

0:30:23.840,0:30:28.320
there’s nothing like that with crypto

0:30:26.320,0:30:29.600
it’s literally just made up as it goes

0:30:28.320,0:30:31.840
along

0:30:29.600,0:30:33.279
and that’s something that scares off

0:30:31.840,0:30:34.080
investors so what you get is a

0:30:33.279,0:30:35.760
completely

0:30:34.080,0:30:38.320
different class of investors that go

0:30:35.760,0:30:41.360
after cryptocurrencies

0:30:38.320,0:30:42.320
as an investor myself i’m very risk

0:30:41.360,0:30:45.919
averse

0:30:42.320,0:30:47.440
you know i will invest money in

0:30:45.919,0:30:50.240
an eight percent a guaranteed eight

0:30:47.440,0:30:53.440
percent return any day

0:30:50.240,0:30:54.159
over the possibility of a 15 return with

0:30:53.440,0:30:56.559
a 50

0:30:54.159,0:30:58.799
chance of loss that’s just the way i am

0:30:56.559,0:31:00.320
i’ll always go for this sure thing

0:30:58.799,0:31:01.919
i mean like i’ve been investing a little

0:31:00.320,0:31:03.200
bit like i don’t as you’ve

0:31:01.919,0:31:04.080
never made clear by this show i don’t

0:31:03.200,0:31:06.000
really understand how a lot of this

0:31:04.080,0:31:06.399
stuff works so i’ve been using robinhood

0:31:06.000,0:31:08.000
and

0:31:06.399,0:31:10.080
and they got in trouble for kind of

0:31:08.000,0:31:11.039
gamifying it but i like that personally

0:31:10.080,0:31:11.919
because it makes a lot easier to

0:31:11.039,0:31:14.159
understand

0:31:11.919,0:31:15.679
um and the way i’ve been trading it is

0:31:14.159,0:31:17.519
it’s it is like gambling where you if

0:31:15.679,0:31:19.919
you’re putting money in

0:31:17.519,0:31:20.960
like you have to be okay to lose it if

0:31:19.919,0:31:22.880
you mess something up

0:31:20.960,0:31:24.080
or like you’re you’re okay having it sit

0:31:22.880,0:31:25.519
there for a long time because

0:31:24.080,0:31:27.279
you know a lot of stocks are like you

0:31:25.519,0:31:30.799
talked about with the disney example

0:31:27.279,0:31:32.000
a long-term thing so it’s i don’t

0:31:30.799,0:31:34.159
i haven’t been doing it enough to

0:31:32.000,0:31:36.000
understand my like how i do it

0:31:34.159,0:31:37.760
um but at least with the crypto stuff i

0:31:36.000,0:31:39.919
was doing it daily

0:31:37.760,0:31:41.360
trying to get like just the smallest

0:31:39.919,0:31:43.919
amount of value out of it

0:31:41.360,0:31:45.440
um where it’s it’s not it’s not a set

0:31:43.919,0:31:46.399
eight percent you know a guaranteed

0:31:45.440,0:31:48.000
eight percent return like you were

0:31:46.399,0:31:50.320
talking about so it’s

0:31:48.000,0:31:51.440
it is weird seeing the comparison of you

0:31:50.320,0:31:54.240
know play it safe

0:31:51.440,0:31:55.279
long term long term but with crypto it’s

0:31:54.240,0:31:58.240
play it now

0:31:55.279,0:32:00.080
and hope for the best absolutely so i

0:31:58.240,0:32:02.799
guess the real overriding question is

0:32:00.080,0:32:05.600
are cryptocurrencies a good investment

0:32:02.799,0:32:06.799
so like we said cryptocurrencies may go

0:32:05.600,0:32:08.880
up in value

0:32:06.799,0:32:10.240
but many investors see them as more

0:32:08.880,0:32:13.600
speculation than not

0:32:10.240,0:32:15.039
real investments and the reason for that

0:32:13.600,0:32:18.320
is that just like real currencies

0:32:15.039,0:32:20.960
cryptocurrencies generate no cash flow

0:32:18.320,0:32:22.720
so for you to profit someone has to pay

0:32:20.960,0:32:24.159
more for the currency than you did which

0:32:22.720,0:32:26.640
is called the greater full

0:32:24.159,0:32:26.640
principle

0:32:27.200,0:32:31.440
yeah i love that one that’s a funny name

0:32:29.600,0:32:34.080
uh and it’s a legitimate theory for

0:32:31.440,0:32:36.000
for investing uh but if you contrast

0:32:34.080,0:32:38.960
that to a well-managed business which

0:32:36.000,0:32:40.880
increases its value over time by growing

0:32:38.960,0:32:42.720
the profitability and cash flow of an

0:32:40.880,0:32:44.640
operation

0:32:42.720,0:32:47.600
experts note that cryptocurrencies such

0:32:44.640,0:32:49.200
as bitcoin may not be that safe

0:32:47.600,0:32:51.120
and some notable voices in the

0:32:49.200,0:32:53.120
investment community have advised

0:32:51.120,0:32:54.640
would-be investors to steer clear of

0:32:53.120,0:32:56.559
them

0:32:54.640,0:32:58.000
because it’s gambling yeah i mean just

0:32:56.559,0:33:00.080
hit the nail on the head you’re probably

0:32:58.000,0:33:01.840
better off going to vegas and betting

0:33:00.080,0:33:03.200
you know five thousand dollars on black

0:33:01.840,0:33:05.120
at the roulette

0:33:03.200,0:33:07.039
then you aren’t putting it in to

0:33:05.120,0:33:10.080
cryptocurrency

0:33:07.039,0:33:12.320
of a particular note warren buffett

0:33:10.080,0:33:13.279
compared bitcoin to paper checks saying

0:33:12.320,0:33:15.279
quote

0:33:13.279,0:33:16.559
it’s v it’s a very effective way of

0:33:15.279,0:33:18.240
transmitting money

0:33:16.559,0:33:19.679
and you can do it anonymously and all

0:33:18.240,0:33:22.159
that a check

0:33:19.679,0:33:24.480
is a way of transmitting money too are

0:33:22.159,0:33:26.399
checks worth a lot of money just because

0:33:24.480,0:33:28.720
they can transmit money

0:33:26.399,0:33:30.640
and i think that really boils it down

0:33:28.720,0:33:32.559
because in order to

0:33:30.640,0:33:33.679
do anything with bitcoin you either have

0:33:32.559,0:33:36.720
to

0:33:33.679,0:33:39.679
generate them through

0:33:36.720,0:33:41.440
very complex very costly uh

0:33:39.679,0:33:44.559
computational

0:33:41.440,0:33:48.880
efforts or you need to buy them

0:33:44.559,0:33:53.279
so if you invest the money to buy them

0:33:48.880,0:33:54.799
you’ve paid somebody money for money

0:33:53.279,0:33:56.720
really yeah and you’re paying that

0:33:54.799,0:33:59.120
conversion rate

0:33:56.720,0:33:59.840
if you generate it then you’re paying

0:33:59.120,0:34:02.080
the money

0:33:59.840,0:34:03.600
to actually it’s not free like a lot of

0:34:02.080,0:34:06.080
people think that and that’s that’s part

0:34:03.600,0:34:08.639
of the problem is that people think

0:34:06.080,0:34:09.599
that oh well cryptocurrency i can

0:34:08.639,0:34:11.520
generate that can

0:34:09.599,0:34:13.919
i can quote unquote mine that on my

0:34:11.520,0:34:15.919
computer well i already own the computer

0:34:13.919,0:34:18.399
so it’s costing me nothing if i can mine

0:34:15.919,0:34:21.919
three bitcoin that’s a fortune

0:34:18.399,0:34:24.240
well you’re not mining for nothing

0:34:21.919,0:34:27.440
you’re paying the electric bill you’re

0:34:24.240,0:34:30.480
paying to cool it because

0:34:27.440,0:34:32.240
it’s it generates so much heat to

0:34:30.480,0:34:33.839
to do these computations people have

0:34:32.240,0:34:37.520
actually turned

0:34:33.839,0:34:38.159
mining computers into heaters for their

0:34:37.520,0:34:40.159
homes

0:34:38.159,0:34:41.359
oh wow you know what they’ve done is

0:34:40.159,0:34:44.159
they built a computer with

0:34:41.359,0:34:46.480
five or six uh graphic processor units

0:34:44.159,0:34:48.720
high-grade graphics processor units

0:34:46.480,0:34:50.079
and they channel that heat into their

0:34:48.720,0:34:50.800
house and that’s how they heat their

0:34:50.079,0:34:53.359
house

0:34:50.800,0:34:54.720
that’s insane i saw i saw one person who

0:34:53.359,0:34:55.839
lived out in colorado or something like

0:34:54.720,0:34:58.240
that and he actually

0:34:55.839,0:35:00.160
funneled the heat from his

0:34:58.240,0:35:02.079
cryptocurrency computer

0:35:00.160,0:35:03.440
to a chicken coop and that heats the

0:35:02.079,0:35:05.680
chicken coop outside

0:35:03.440,0:35:07.119
well there you go but that’s no

0:35:05.680,0:35:11.280
different than because you’re still

0:35:07.119,0:35:13.440
paying to use that power

0:35:11.280,0:35:15.200
one of the latest trends now is they’re

0:35:13.440,0:35:18.320
putting a lot of

0:35:15.200,0:35:19.760
crypto mining farms in alaska so they

0:35:18.320,0:35:21.280
don’t have to pay for the cooling costs

0:35:19.760,0:35:23.200
so they’re just pulling

0:35:21.280,0:35:24.720
put them in the ice yeah they’re pulling

0:35:23.200,0:35:26.320
outdoor air in

0:35:24.720,0:35:27.680
and that’s cooling these machines off

0:35:26.320,0:35:28.000
yeah i know there was a this is a while

0:35:27.680,0:35:29.839
ago

0:35:28.000,0:35:32.000
probably a year ago but the nintendo

0:35:29.839,0:35:33.440
switch had a thing the gaming console

0:35:32.000,0:35:34.960
where people couldn’t figure out why

0:35:33.440,0:35:36.160
when they played this one game it was

0:35:34.960,0:35:37.920
like some cooking game

0:35:36.160,0:35:39.040
why their switches kept overheating and

0:35:37.920,0:35:40.640
it was because they were using it to

0:35:39.040,0:35:41.200
mine bitcoin in the background for the

0:35:40.640,0:35:42.640
game

0:35:41.200,0:35:43.680
so people’s switches would overheat and

0:35:42.640,0:35:44.640
turn off and they couldn’t figure out

0:35:43.680,0:35:45.920
why because it’s not like

0:35:44.640,0:35:47.680
you know the switch is like that big

0:35:45.920,0:35:48.320
it’s not like it’s a you know a ps5 or

0:35:47.680,0:35:49.520
something

0:35:48.320,0:35:50.640
so people are like what’s going on here

0:35:49.520,0:35:52.000
and they looked into it and it was they

0:35:50.640,0:35:53.520
were mining bitcoin in the background

0:35:52.000,0:35:56.640
when you played the game it was insane

0:35:53.520,0:35:57.599
yeah yeah it’s scary it really is for

0:35:56.640,0:36:00.880
those who

0:35:57.599,0:36:02.640
see cryptocurrency and such as bitcoin

0:36:00.880,0:36:05.760
as the currency of the future it should

0:36:02.640,0:36:07.599
be noted that a currency needs stability

0:36:05.760,0:36:10.640
so that merchants and consumers can

0:36:07.599,0:36:13.680
determine what a fair price for goods is

0:36:10.640,0:36:16.000
so let’s take the instance of

0:36:13.680,0:36:17.839
tesla so they’re going to be selling a

0:36:16.000,0:36:21.760
car and they’re going to price

0:36:17.839,0:36:24.400
the cost in bitcoin

0:36:21.760,0:36:26.320
out to what the equivalent dollar value

0:36:24.400,0:36:28.720
would be

0:36:26.320,0:36:31.680
so let’s say for instance you buy a

0:36:28.720,0:36:34.400
tesla for eighty thousand dollars

0:36:31.680,0:36:35.839
let’s say that’s for the sake of easy

0:36:34.400,0:36:37.359
math that’s eight bitcoin

0:36:35.839,0:36:39.119
all right say bitcoins at ten thousand

0:36:37.359,0:36:42.400
dollars each

0:36:39.119,0:36:45.119
well if bitcoin drops in value

0:36:42.400,0:36:47.280
at any point in time while you’re still

0:36:45.119,0:36:50.320
paying for that car

0:36:47.280,0:36:51.280
then you just got like if it drops to 5

0:36:50.320,0:36:54.480
000

0:36:51.280,0:36:56.240
per bitcoin you just paid half price for

0:36:54.480,0:36:58.160
that car

0:36:56.240,0:37:00.880
what merchant is going to deal with a

0:36:58.160,0:37:05.280
currency that’s that volatile

0:37:00.880,0:37:08.640
and that prone to have them lose money

0:37:05.280,0:37:10.880
like it just for for tesla to

0:37:08.640,0:37:11.839
to go that route i think puzzled a lot

0:37:10.880,0:37:14.480
of people

0:37:11.839,0:37:16.079
do you think that it’s gonna end up

0:37:14.480,0:37:16.960
becoming regulated if enough businesses

0:37:16.079,0:37:18.079
get involved do you think it’s just

0:37:16.960,0:37:18.960
gonna sidestep the government and

0:37:18.079,0:37:19.599
they’re just gonna regulate it

0:37:18.960,0:37:20.960
themselves

0:37:19.599,0:37:22.240
especially if they have the majority of

0:37:20.960,0:37:23.040
it like a tesla or another big

0:37:22.240,0:37:26.079
corporation

0:37:23.040,0:37:28.160
well and that’s that’s actually a very

0:37:26.079,0:37:31.119
interesting proposition

0:37:28.160,0:37:33.119
you can’t regulate it you can’t because

0:37:31.119,0:37:34.240
of its decentralized decentralized

0:37:33.119,0:37:36.800
nature

0:37:34.240,0:37:39.440
so even if you own the majority of it

0:37:36.800,0:37:42.640
like owning the majority of a company

0:37:39.440,0:37:44.400
you control that company if you own the

0:37:42.640,0:37:47.040
majority of bitcoin you can’t

0:37:44.400,0:37:47.920
dictate the price of bitcoin because

0:37:47.040,0:37:51.200
bitcoin is

0:37:47.920,0:37:54.480
only worth what the market will bear

0:37:51.200,0:37:56.400
so if tesla owned 60 of the available

0:37:54.480,0:37:59.119
bitcoin out there

0:37:56.400,0:38:00.960
they could ask whatever they want but if

0:37:59.119,0:38:02.400
nobody wants to pay that value then it’s

0:38:00.960,0:38:04.880
not worth that right

0:38:02.400,0:38:06.960
like think of selling on ebay oh you

0:38:04.880,0:38:08.160
know i can put my star wars figures up

0:38:06.960,0:38:10.079
on ebay and ask

0:38:08.160,0:38:11.280
five thousand dollars for them doesn’t

0:38:10.079,0:38:12.160
mean they’re worth five thousand if

0:38:11.280,0:38:15.359
nobody’s gonna

0:38:12.160,0:38:17.040
buy them and that’s what you’re looking

0:38:15.359,0:38:18.079
at with bitcoin is that you you can’t

0:38:17.040,0:38:20.560
drink it so i don’t know

0:38:18.079,0:38:22.800
why at this point in time someone like

0:38:20.560,0:38:24.400
elon musk would get into it

0:38:22.800,0:38:26.640
if for no other reason than just for

0:38:24.400,0:38:27.920
publicity i’m pretty sure he had an sec

0:38:26.640,0:38:29.440
filing the other day where they have to

0:38:27.920,0:38:31.119
call him like crypto king now or

0:38:29.440,0:38:33.680
something like that

0:38:31.119,0:38:34.320
which one of my friends it was half

0:38:33.680,0:38:35.440
joking

0:38:34.320,0:38:36.960
but he was like well that’s so they

0:38:35.440,0:38:38.240
don’t have to say he’s a ceo so when he

0:38:36.960,0:38:39.680
does dumb stuff like this he can say

0:38:38.240,0:38:40.400
well i’m not ceo i’m the crypto king

0:38:39.680,0:38:43.839
right it’s different

0:38:40.400,0:38:47.680
right but

0:38:43.839,0:38:49.280
i i don’t know he does things like

0:38:47.680,0:38:51.599
i mean this is the man who sold

0:38:49.280,0:38:52.320
flamethrowers to to promote his boring

0:38:51.599,0:38:54.800
company

0:38:52.320,0:38:56.160
you know his mining company so we could

0:38:54.800,0:38:58.839
do a whole show on him if he wanted to

0:38:56.160,0:39:01.839
yeah and he’s like tony stark but not as

0:38:58.839,0:39:01.839
cool

0:39:02.800,0:39:06.160
but as we said bitcoin and other

0:39:04.240,0:39:08.640
cryptocurrencies have been anything but

0:39:06.160,0:39:10.480
stable through much of their history

0:39:08.640,0:39:12.839
for example while bitcoin traded close

0:39:10.480,0:39:14.240
to twenty thousand dollars in december

0:39:12.839,0:39:16.800
2017

0:39:14.240,0:39:17.680
by 2020 it was trading at record levels

0:39:16.800,0:39:20.960
i’m sorry

0:39:17.680,0:39:24.160
it dropped as low as 3200

0:39:20.960,0:39:26.839
later that year that’s that’s 70 percent

0:39:24.160,0:39:28.720
of her value that’s

0:39:26.839,0:39:30.560
ridiculous

0:39:28.720,0:39:33.520
to have a drop like that and then by

0:39:30.560,0:39:35.520
2020 it was back at record levels again

0:39:33.520,0:39:36.640
so the price of volatility creates a

0:39:35.520,0:39:38.880
conundrum

0:39:36.640,0:39:40.640
hence the title to the show seeing you

0:39:38.880,0:39:40.960
also for the title i didn’t make quite

0:39:40.640,0:39:43.599
good

0:39:40.960,0:39:45.520
it was funny if bitcoins might be worth

0:39:43.599,0:39:48.480
a lot more in the future people are less

0:39:45.520,0:39:50.320
likely to spend and circulate them today

0:39:48.480,0:39:53.280
so i’m going to stop buying pizzas with

0:39:50.320,0:39:56.320
my bitcoin i’m going to hold on to them

0:39:53.280,0:39:58.400
making them less viable as a currency so

0:39:56.320,0:40:03.200
think of it almost like a commodity like

0:39:58.400,0:40:05.680
gold so gold rarely drops in

0:40:03.200,0:40:06.400
value and what happens is a lot of

0:40:05.680,0:40:07.839
people

0:40:06.400,0:40:08.880
buy gold and they hold on to it because

0:40:07.839,0:40:10.720
it’s a good investment because it

0:40:08.880,0:40:12.800
doesn’t drop in value

0:40:10.720,0:40:13.760
nobody deals in gold as a currency

0:40:12.800,0:40:17.119
anymore

0:40:13.760,0:40:19.760
it’s not practical to deal in it but

0:40:17.119,0:40:21.200
because it’s stable people are going to

0:40:19.760,0:40:23.920
hold on to that

0:40:21.200,0:40:26.640
and use that to back other ventures

0:40:23.920,0:40:29.520
because this is volatile and could drop

0:40:26.640,0:40:31.200
or increase dramatically people don’t

0:40:29.520,0:40:31.920
want to spend that because they don’t

0:40:31.200,0:40:34.720
want to spend

0:40:31.920,0:40:35.119
twenty thousand dollars on a pizza even

0:40:34.720,0:40:37.599
though

0:40:35.119,0:40:39.440
it may only be twenty dollars today so

0:40:37.599,0:40:40.960
you know a year from now could be twenty

0:40:39.440,0:40:43.680
thousand dollars

0:40:40.960,0:40:46.960
so it doesn’t lend itself to being used

0:40:43.680,0:40:46.960
to transmit money

0:40:47.040,0:40:51.280
and finally they say why spend a bitcoin

0:40:49.680,0:40:53.119
when it would be worth three times that

0:40:51.280,0:40:54.480
value next year and that’s exactly what

0:40:53.119,0:40:57.599
they’re saying

0:40:54.480,0:40:59.599
it’s more an investment gimmick i think

0:40:57.599,0:41:02.079
than it is a real currency

0:40:59.599,0:41:02.960
so then do you think it will go by the

0:41:02.079,0:41:04.880
wayside eventually

0:41:02.960,0:41:06.480
if once if people adopt this line of

0:41:04.880,0:41:08.319
thinking that it’s it’s

0:41:06.480,0:41:09.520
you know not worth the effort to spend

0:41:08.319,0:41:11.760
it i think

0:41:09.520,0:41:13.839
bitcoin has a very limited lifetime to

0:41:11.760,0:41:15.359
it i think cryptocurrency in general

0:41:13.839,0:41:18.079
does i think

0:41:15.359,0:41:20.640
blockchain has other practical

0:41:18.079,0:41:24.240
applications that can be used

0:41:20.640,0:41:25.599
for more realistic things

0:41:24.240,0:41:28.319
i think what we’re seeing right now with

0:41:25.599,0:41:30.560
crypto is probably a fad

0:41:28.319,0:41:31.760
because it’s just too unstable you know

0:41:30.560,0:41:35.520
people

0:41:31.760,0:41:36.720
investors don’t like instability

0:41:35.520,0:41:39.040
so you’re going to find that it’s going

0:41:36.720,0:41:42.000
to it’s going to probably lose its

0:41:39.040,0:41:43.440
widespread adoption pretty quickly

0:41:42.000,0:41:45.680
but let’s take a quick break and we’ll

0:41:43.440,0:41:47.280
come back and we’ll look at what we do

0:41:45.680,0:41:50.240
think of what the future

0:41:47.280,0:41:52.620
of cryptocurrency is and how it’s

0:41:50.240,0:41:59.449
changing the world

0:41:52.620,0:41:59.449
[Music]

0:42:00.160,0:42:05.359
insights into teens a podcast series

0:42:03.040,0:42:09.440
exploring the issues and challenges

0:42:05.359,0:42:10.480
of today’s youth talking to real teens

0:42:09.440,0:42:14.880
about real teen

0:42:10.480,0:42:17.839
problems explore issues from braces to

0:42:14.880,0:42:19.790
puberty social anxiety to financial

0:42:17.839,0:42:20.960
responsibility

0:42:19.790,0:42:22.960
[Applause]

0:42:20.960,0:42:25.040
each week we talk about the topics

0:42:22.960,0:42:27.920
concerning today’s youth

0:42:25.040,0:42:30.400
we look at how the issues affect teens

0:42:27.920,0:42:31.119
how to cope with these issues and how

0:42:30.400,0:42:33.280
parents

0:42:31.119,0:42:36.640
friends and loved ones can help teens

0:42:33.280,0:42:36.640
handle these challenges

0:42:37.359,0:42:41.200
check out our video episodes on

0:42:39.400,0:42:44.800
youtube.com backslash

0:42:41.200,0:42:48.359
insights into things

0:42:44.800,0:42:49.600
catch our audio versions on

0:42:48.359,0:42:51.599
podcasts.insightsintoteens.com

0:42:49.600,0:42:57.970
[Music]

0:42:51.599,0:43:03.200
or on the web at insightsintothings.com

0:42:57.970,0:43:06.079
[Music]

0:43:03.200,0:43:07.839
welcome back to insights into tomorrow

0:43:06.079,0:43:10.560
we’re talking cryptocurrency

0:43:07.839,0:43:10.960
and as we said earlier uh cryptocurrency

0:43:10.560,0:43:14.319
is not

0:43:10.960,0:43:16.960
new it’s been around since roughly 2009

0:43:14.319,0:43:18.880
when bitcoin was first created

0:43:16.960,0:43:21.520
but in recent years it started to have a

0:43:18.880,0:43:23.359
more significant impact on the world

0:43:21.520,0:43:25.040
cryptocurrency has done this by changing

0:43:23.359,0:43:27.920
the way various industries

0:43:25.040,0:43:30.640
operate and opening up new opportunities

0:43:27.920,0:43:32.560
for individuals and businesses alike

0:43:30.640,0:43:34.319
the creation of cryptocurrency also

0:43:32.560,0:43:35.520
introduced blockchain technology to the

0:43:34.319,0:43:37.520
world which is i think the most

0:43:35.520,0:43:41.359
significant contribution that

0:43:37.520,0:43:42.880
we get from crypto according to statista

0:43:41.359,0:43:45.200
revenues from the technology are

0:43:42.880,0:43:48.160
expected to reach more than 39 billion

0:43:45.200,0:43:50.400
us dollars by 2025.

0:43:48.160,0:43:52.560
from these figures it’s clear the

0:43:50.400,0:43:56.319
cryptocurrencies and the technology that

0:43:52.560,0:43:58.400
surround them are having a major impact

0:43:56.319,0:44:00.000
here are some of the examples of how

0:43:58.400,0:44:01.359
cryptocurrencies change in the world why

0:44:00.000,0:44:03.599
don’t you tell us about these

0:44:01.359,0:44:05.119
sure uh so alternative international

0:44:03.599,0:44:06.560
financial transactions which we kind of

0:44:05.119,0:44:08.000
talked about earlier with it being a

0:44:06.560,0:44:09.599
borderless currency

0:44:08.000,0:44:10.800
uh businesses are always keen to find a

0:44:09.599,0:44:12.319
way to complete international

0:44:10.800,0:44:13.040
transactions in the most secure way

0:44:12.319,0:44:14.800
possible

0:44:13.040,0:44:16.560
so cryptocurrency-based solutions like

0:44:14.800,0:44:18.160
ripple can help with this

0:44:16.560,0:44:19.920
ripple operates on an open source

0:44:18.160,0:44:20.800
platform and it enables the seamless

0:44:19.920,0:44:22.800
transfer

0:44:20.800,0:44:23.920
of both crypto currencies like bitcoin

0:44:22.800,0:44:26.800
and litecoin

0:44:23.920,0:44:28.319
and fiat money like usd and yen i don’t

0:44:26.800,0:44:30.640
know what fiat money is

0:44:28.319,0:44:31.920
fiat money is is national occurrence

0:44:30.640,0:44:32.560
okay i didn’t realize that was a term

0:44:31.920,0:44:34.960
for it

0:44:32.560,0:44:36.160
uh and then finally the main process of

0:44:34.960,0:44:37.760
ripple is payment

0:44:36.160,0:44:39.839
settlement and remittance that is

0:44:37.760,0:44:42.400
similar to the traditional swift system

0:44:39.839,0:44:44.160
which is used by financial institutions

0:44:42.400,0:44:45.599
what is the swift system also

0:44:44.160,0:44:47.359
well swiss system we’re not going to go

0:44:45.599,0:44:48.800
into today that’s a lot more complicated

0:44:47.359,0:44:49.200
okay yeah we’ll get an economist next

0:44:48.800,0:44:51.520
time

0:44:49.200,0:44:53.359
break that down for us second more

0:44:51.520,0:44:54.800
options for secure online payments

0:44:53.359,0:44:56.400
cryptocurrencies and blockchain

0:44:54.800,0:44:57.839
technology can make it easier for people

0:44:56.400,0:44:59.359
to make online payments

0:44:57.839,0:45:01.599
blockchain wallets store private and

0:44:59.359,0:45:03.680
public keys that enable payments to be

0:45:01.599,0:45:05.599
made securely and quickly

0:45:03.680,0:45:07.599
also many sites in various industries

0:45:05.599,0:45:09.920
accept cryptocurrencies as a safe way

0:45:07.599,0:45:11.760
for people to send and deposit money

0:45:09.920,0:45:13.200
so for example online gambling sites

0:45:11.760,0:45:16.079
that accept cryptocurrencies

0:45:13.200,0:45:17.599
are popular among young adults and in

0:45:16.079,0:45:19.599
general with players due to the added

0:45:17.599,0:45:21.119
security that is provided

0:45:19.599,0:45:22.960
the worldwide online payment system

0:45:21.119,0:45:25.280
paypal has also recently announced it is

0:45:22.960,0:45:27.839
going to start allowing customers to buy

0:45:25.280,0:45:29.760
sell and hold cryptocurrencies uh in its

0:45:27.839,0:45:31.200
online wallets paypal was elon musk

0:45:29.760,0:45:33.599
right he invented that

0:45:31.200,0:45:34.960
i believe that’s why so yeah another

0:45:33.599,0:45:36.800
elon he’s back

0:45:34.960,0:45:38.560
another mention of him uh

0:45:36.800,0:45:40.720
revolutionizing supply chains

0:45:38.560,0:45:42.720
so bitcoin the global economy is reliant

0:45:40.720,0:45:44.640
on secure and efficient supply chains

0:45:42.720,0:45:46.720
this makes supply chain security a major

0:45:44.640,0:45:48.319
concern the blockchain technology that

0:45:46.720,0:45:50.240
enables the use of crypto

0:45:48.319,0:45:51.520
can also be used to improve the security

0:45:50.240,0:45:52.640
of supply chains thanks to its

0:45:51.520,0:45:54.960
transparency

0:45:52.640,0:45:56.319
and decentralized nature certain

0:45:54.960,0:45:59.359
currencies like walton chain

0:45:56.319,0:46:00.640
and v chain or vet chain are

0:45:59.359,0:46:02.079
specifically aimed at improving the

0:46:00.640,0:46:03.680
safety and speed of supply chain

0:46:02.079,0:46:05.760
operation

0:46:03.680,0:46:07.280
providing a platform for creatives it

0:46:05.760,0:46:09.040
can often be difficult for professionals

0:46:07.280,0:46:10.240
like musicians to sell content

0:46:09.040,0:46:12.480
interference from middlemen like

0:46:10.240,0:46:13.680
producers so they can use crypto like

0:46:12.480,0:46:15.599
xrp

0:46:13.680,0:46:17.839
to allow them to sell content directly

0:46:15.599,0:46:19.440
to consumers this is because consumers

0:46:17.839,0:46:20.640
can access the content and pay for it

0:46:19.440,0:46:22.400
using a real world

0:46:20.640,0:46:23.920
payment solution that’s an interesting

0:46:22.400,0:46:25.440
note i never thought of that of

0:46:23.920,0:46:26.960
of how it can be used to actually help

0:46:25.440,0:46:28.800
uh people that might be you know

0:46:26.960,0:46:30.160
you know scammed by a producer or

0:46:28.800,0:46:32.319
something like that

0:46:30.160,0:46:34.480
changing the way ngos deal with money

0:46:32.319,0:46:36.240
non-governmental organizations ngos

0:46:34.480,0:46:37.920
engage with crypto as a way of getting

0:46:36.240,0:46:39.040
currency to underprivileged areas of the

0:46:37.920,0:46:40.800
world

0:46:39.040,0:46:42.800
during the current crisis the red cross

0:46:40.800,0:46:44.480
in italy has also started accepting

0:46:42.800,0:46:45.839
bitcoin donations from people in order

0:46:44.480,0:46:47.280
to boost its fund

0:46:45.839,0:46:49.119
and help it provide the support that

0:46:47.280,0:46:51.520
people need

0:46:49.119,0:46:52.160
so using it for more humanitarian

0:46:51.520,0:46:54.079
efforts

0:46:52.160,0:46:55.359
sure and and the other thing we kind of

0:46:54.079,0:46:57.839
have to

0:46:55.359,0:46:59.680
make note of here is that we talked a

0:46:57.839,0:47:02.240
lot about bitcoin because that’s in the

0:46:59.680,0:47:03.680
in the news a lot and bitcoin’s a form

0:47:02.240,0:47:05.920
of crypto but it’s obviously not the

0:47:03.680,0:47:10.000
only version

0:47:05.920,0:47:11.599
crypto in general can be used for other

0:47:10.000,0:47:13.760
different things depending on how it’s

0:47:11.599,0:47:15.520
generated like for instance we talked

0:47:13.760,0:47:17.040
how bitcoin has a finite number of

0:47:15.520,0:47:20.240
bitcoins that you can never

0:47:17.040,0:47:22.800
get out of the blockchain but other

0:47:20.240,0:47:24.880
currencies like dogecoin it’s unlimited

0:47:22.800,0:47:27.040
so you can continue to generate dogecoin

0:47:24.880,0:47:30.240
which is why the value never really

0:47:27.040,0:47:31.839
soars because there’s an infinite amount

0:47:30.240,0:47:34.559
of it out there

0:47:31.839,0:47:36.720
but it’s also a legitimate form of of

0:47:34.559,0:47:39.680
currency because it is

0:47:36.720,0:47:41.200
digitally signed through a very strong

0:47:39.680,0:47:44.559
encryption

0:47:41.200,0:47:45.280
so something like that you can easily

0:47:44.559,0:47:47.599
use that

0:47:45.280,0:47:49.680
to do electronic transactions back and

0:47:47.599,0:47:50.800
forth online or to transfer large sums

0:47:49.680,0:47:52.240
of money or

0:47:50.800,0:47:54.800
you know things like that where you want

0:47:52.240,0:47:57.520
to have secure borderless

0:47:54.800,0:47:58.800
uh transactions that’s not to say that

0:47:57.520,0:48:02.720
bitcoin’s the best

0:47:58.800,0:48:04.319
crypto for that but crypto can be used

0:48:02.720,0:48:06.800
for these things it

0:48:04.319,0:48:08.640
it does away with that decentralized

0:48:06.800,0:48:10.079
bank it does away with these conversions

0:48:08.640,0:48:12.240
it does away

0:48:10.079,0:48:14.640
with the regulations that you get bogged

0:48:12.240,0:48:14.640
down in

0:48:14.880,0:48:18.839
one example which is probably not a good

0:48:18.079,0:48:22.720
example

0:48:18.839,0:48:24.880
is north korea

0:48:22.720,0:48:27.200
okay so north korea is under all kinds

0:48:24.880,0:48:30.400
of sanctions they can’t trade

0:48:27.200,0:48:32.240
you know t at this point in time without

0:48:30.400,0:48:33.599
having some kind of sanction slapped on

0:48:32.240,0:48:36.160
them

0:48:33.599,0:48:37.760
but they can trade crypto because it’s

0:48:36.160,0:48:40.000
unregulated yeah there’s no way to stop

0:48:37.760,0:48:41.680
that i don’t even think of that

0:48:40.000,0:48:43.440
now that’s a bad example of that but the

0:48:41.680,0:48:47.520
good example of that is if you’re

0:48:43.440,0:48:49.920
in a oppressive third world regime

0:48:47.520,0:48:51.440
that you’re trying to fight for the

0:48:49.920,0:48:52.079
freedom of the people there and the

0:48:51.440,0:48:55.440
government

0:48:52.079,0:48:56.760
is oppressing you you can fund those

0:48:55.440,0:48:59.280
operations through

0:48:56.760,0:49:00.720
cryptocurrencies and still manage to get

0:48:59.280,0:49:02.000
the funds that you need yeah it sort of

0:49:00.720,0:49:03.359
cuts out the the red tape

0:49:02.000,0:49:05.440
and the middleman and all that to just

0:49:03.359,0:49:05.920
get them the currency where it needs to

0:49:05.440,0:49:08.559
be

0:49:05.920,0:49:09.040
exactly i i think personally moving

0:49:08.559,0:49:12.079
forward

0:49:09.040,0:49:13.680
crypto currencies themselves are going

0:49:12.079,0:49:17.680
to be more of a medium

0:49:13.680,0:49:18.800
than they are an asset or an investment

0:49:17.680,0:49:20.880
they’re going to be used for

0:49:18.800,0:49:22.800
transactions like a lot of tran business

0:49:20.880,0:49:26.640
transactions use

0:49:22.800,0:49:29.440
eft fund transactions now and

0:49:26.640,0:49:30.720
you get a lot of hands touching that

0:49:29.440,0:49:32.079
type of stuff through the banking

0:49:30.720,0:49:34.880
industries

0:49:32.079,0:49:36.079
and i think cryptocurrencies eliminate a

0:49:34.880,0:49:39.400
lot of that stuff so i

0:49:36.079,0:49:41.040
i think the future there’s a future for

0:49:39.400,0:49:42.720
cryptocurrencies

0:49:41.040,0:49:44.960
i think it’s very different than what we

0:49:42.720,0:49:47.119
see today i think we’re going to see

0:49:44.960,0:49:49.680
them take on a different role

0:49:47.119,0:49:51.119
i think we’re going to see them be used

0:49:49.680,0:49:52.319
by different people for different

0:49:51.119,0:49:54.000
reasons

0:49:52.319,0:49:55.680
i don’t think they’re going to be a

0:49:54.000,0:49:57.440
viable investment

0:49:55.680,0:50:00.240
anytime in the in the near future just

0:49:57.440,0:50:02.800
because of the volatility

0:50:00.240,0:50:04.640
but one of the things that we are seeing

0:50:02.800,0:50:06.960
crypto use for and again this is this is

0:50:04.640,0:50:09.559
a different use of block chains

0:50:06.960,0:50:12.720
is something called an nft or a

0:50:09.559,0:50:14.800
non-fungible token and these are a type

0:50:12.720,0:50:16.800
of cryptocurrency created on

0:50:14.800,0:50:18.160
smart contract platforms such as

0:50:16.800,0:50:21.119
ethereum

0:50:18.160,0:50:22.800
and they’re unique digital objects that

0:50:21.119,0:50:24.559
can be cool to own or even

0:50:22.800,0:50:26.079
profitable to trade like it’s world of

0:50:24.559,0:50:27.920
warcraft or something

0:50:26.079,0:50:29.359
similar to that and i mean you joke but

0:50:27.920,0:50:32.559
it’s similar to that but

0:50:29.359,0:50:32.880
for instance elon musk’s girlfriend was

0:50:32.559,0:50:35.680
just

0:50:32.880,0:50:36.960
in the news because she put up eight

0:50:35.680,0:50:41.359
million dollars in

0:50:36.960,0:50:42.880
artwork as nfts uh the mba is involved

0:50:41.359,0:50:46.720
in this you can purchase

0:50:42.880,0:50:50.160
a a non f an nft a non-fungible token

0:50:46.720,0:50:51.040
of an mba highly and you own that

0:50:50.160,0:50:54.160
highlight

0:50:51.040,0:50:55.040
like the footage no just the rights to

0:50:54.160,0:50:57.119
the highlight

0:50:55.040,0:50:58.559
okay this is where it gets confusing

0:50:57.119,0:51:01.280
yeah i’m kind of lost

0:50:58.559,0:51:03.200
think of it as let’s go back to the

0:51:01.280,0:51:05.920
analogy of baseball cards

0:51:03.200,0:51:07.920
all right so as a kid i would buy

0:51:05.920,0:51:09.599
baseball cards you’d go out to the store

0:51:07.920,0:51:11.280
you’d buy a pack of them

0:51:09.599,0:51:13.280
you’d open them up and see what card you

0:51:11.280,0:51:14.880
got if you got a rookie card of somebody

0:51:13.280,0:51:17.119
that you knew was good

0:51:14.880,0:51:18.480
you held on to it and it had value i

0:51:17.119,0:51:21.359
could take that to a

0:51:18.480,0:51:23.680
trading card store somewhere and sell it

0:51:21.359,0:51:26.720
this is sort of the same type of thing

0:51:23.680,0:51:31.040
but you never get the car

0:51:26.720,0:51:34.240
so for instance you pay for an nft

0:51:31.040,0:51:35.599
and that nft happens to be for i i say

0:51:34.240,0:51:38.720
ricky henderson because that’s the only

0:51:35.599,0:51:42.079
valuable baseball card i ever owned

0:51:38.720,0:51:42.800
so you pay for a token a digital token

0:51:42.079,0:51:45.599
for

0:51:42.800,0:51:47.440
ricky henderson’s rookie car and that

0:51:45.599,0:51:49.440
card stays in the store in the window

0:51:47.440,0:51:50.160
and everyone can come by and they can

0:51:49.440,0:51:52.079
look at that

0:51:50.160,0:51:53.680
and and they can gawk at it and they can

0:51:52.079,0:51:56.160
ooh and on everything

0:51:53.680,0:51:56.720
but nobody can have it they can just say

0:51:56.160,0:52:00.160
it

0:51:56.720,0:52:01.920
you own it now you can trade it to

0:52:00.160,0:52:03.119
someone else you can sell it to someone

0:52:01.920,0:52:06.800
else you can sell that

0:52:03.119,0:52:09.599
right to it but you never actually

0:52:06.800,0:52:10.880
own it that sounds lame why would you

0:52:09.599,0:52:12.400
want to do that

0:52:10.880,0:52:14.000
especially if it’s like grimes is

0:52:12.400,0:52:14.880
artwork when you want to hang artwork

0:52:14.000,0:52:16.240
like in your house

0:52:14.880,0:52:17.599
you just have a thing that says you’re

0:52:16.240,0:52:19.520
on the artwork you don’t own the art

0:52:17.599,0:52:22.640
well and that’s like you can have

0:52:19.520,0:52:23.119
copies of it but you own the right to

0:52:22.640,0:52:25.520
that

0:52:23.119,0:52:26.960
item itself so no one else can own the

0:52:25.520,0:52:28.640
right to it it seems like a pyramid

0:52:26.960,0:52:30.319
scheme or something

0:52:28.640,0:52:32.000
and that’s how it’s been described the

0:52:30.319,0:52:33.680
idea of our

0:52:32.000,0:52:37.760
that’s how it’s been described so so

0:52:33.680,0:52:37.760
what is fungible and non-fungible

0:52:37.920,0:52:41.280
you’re asking me yes oh well

0:52:39.359,0:52:42.400
conveniently enough we have a very well

0:52:41.280,0:52:44.079
produced show notes

0:52:42.400,0:52:46.000
cryptocurrencies can be fungible meaning

0:52:44.079,0:52:48.079
all the currency unit i.e tokens

0:52:46.000,0:52:49.520
are the same and equal like grains of

0:52:48.079,0:52:51.440
rice or dollars

0:52:49.520,0:52:53.680
non-fungible tokens are the opposite

0:52:51.440,0:52:55.680
every cryptocurrency unit or token

0:52:53.680,0:52:57.280
is unique and cannot be replicated this

0:52:55.680,0:52:58.960
quote non-fungible property

0:52:57.280,0:53:00.559
can be used for many things even certain

0:52:58.960,0:53:02.640
types of currencies

0:53:00.559,0:53:04.319
but the current nft craze is mostly

0:53:02.640,0:53:06.240
fueled by digital art and collectibles

0:53:04.319,0:53:07.680
kind of like we talked about

0:53:06.240,0:53:10.000
people have figured out that a unique

0:53:07.680,0:53:11.680
digital object can be interesting cool

0:53:10.000,0:53:12.240
and even have a significant monetary

0:53:11.680,0:53:13.599
value

0:53:12.240,0:53:15.440
it’s why the space has recently

0:53:13.599,0:53:17.280
blossomed encompassing thousands of

0:53:15.440,0:53:18.720
projects involving artworks gaming and

0:53:17.280,0:53:21.920
sports

0:53:18.720,0:53:24.640
so how do nfts work so

0:53:21.920,0:53:25.119
it really depends on the platform right

0:53:24.640,0:53:27.520
so

0:53:25.119,0:53:29.680
given the vast majority of nfts that are

0:53:27.520,0:53:32.880
created and traded on ethereum

0:53:29.680,0:53:35.280
let’s focus on that so nft is created

0:53:32.880,0:53:36.240
on ethereum’s blockchain which is

0:53:35.280,0:53:38.000
immutable

0:53:36.240,0:53:40.079
meaning it can’t be altered like we’ve

0:53:38.000,0:53:42.800
talked about all blockchains

0:53:40.079,0:53:43.119
no one can undo your ownership of an nft

0:53:42.800,0:53:47.440
or

0:53:43.119,0:53:49.599
recreate the same one they’re also

0:53:47.440,0:53:52.000
quote permissionless so anyone can

0:53:49.599,0:53:53.359
create buy or sell an nft without asking

0:53:52.000,0:53:54.880
for permission

0:53:53.359,0:53:56.880
so if you are an artist you can create

0:53:54.880,0:53:57.920
your own fts you don’t have to license

0:53:56.880,0:54:00.160
it through someone else

0:53:57.920,0:54:01.119
so how does that work with like the mba

0:54:00.160,0:54:03.760
so the nba

0:54:01.119,0:54:05.119
creates their nfts for these highlights

0:54:03.760,0:54:05.520
and they’re the only ones that can

0:54:05.119,0:54:07.599
create

0:54:05.520,0:54:09.280
their nft right they’re the authority

0:54:07.599,0:54:12.079
for it

0:54:09.280,0:54:14.079
and if every nft is unique and can be

0:54:12.079,0:54:16.880
viewed by anyone just like that card in

0:54:14.079,0:54:19.280
the window anyone can walk by the window

0:54:16.880,0:54:20.800
so again it’s like a you know the

0:54:19.280,0:54:22.960
analogy i gave you with

0:54:20.800,0:54:25.520
having a card that’s forever available

0:54:22.960,0:54:27.839
for people to use

0:54:25.520,0:54:28.960
i don’t know why people would do it yeah

0:54:27.839,0:54:31.119
um

0:54:28.960,0:54:32.960
people are doing it there’s a huge

0:54:31.119,0:54:34.400
budding industry which is why

0:54:32.960,0:54:36.160
i threw it in at the end of the notes

0:54:34.400,0:54:38.079
here because it kind of was an

0:54:36.160,0:54:40.799
afterthought in my research

0:54:38.079,0:54:42.640
in doing this but i wanted to put it in

0:54:40.799,0:54:45.680
here as another example of how

0:54:42.640,0:54:47.640
blockchain itself is being used

0:54:45.680,0:54:49.760
without it being technically a

0:54:47.640,0:54:52.880
cryptocurrency

0:54:49.760,0:54:55.280
um and and i guess you know let’s take a

0:54:52.880,0:54:59.520
step back and talk about

0:54:55.280,0:55:01.119
um where we think it’s going to go

0:54:59.520,0:55:02.559
so we’re going to take a quick break our

0:55:01.119,0:55:03.119
last break we’ll come back and we’ll

0:55:02.559,0:55:05.040
talk about

0:55:03.119,0:55:07.050
what the future of cryptocurrency is

0:55:05.040,0:55:12.020
going to look like

0:55:07.050,0:55:12.020
[Music]

0:55:15.359,0:55:21.119
for over seven years the second sith

0:55:18.400,0:55:22.000
empire has been the premier community

0:55:21.119,0:55:24.720
guild

0:55:22.000,0:55:26.240
in the online game star wars the old

0:55:24.720,0:55:29.200
republic

0:55:26.240,0:55:30.960
with hundreds of friendly and helpful

0:55:29.200,0:55:34.319
active members

0:55:30.960,0:55:36.960
a weekly schedule of nightly events

0:55:34.319,0:55:38.240
annual guild meet and greets and an

0:55:36.960,0:55:41.920
active community

0:55:38.240,0:55:44.400
both on the web and on discord

0:55:41.920,0:55:46.319
the second civ empire is more than your

0:55:44.400,0:55:50.079
typical gaming group

0:55:46.319,0:55:50.880
we’re family join us on the star forge

0:55:50.079,0:55:54.400
server

0:55:50.880,0:55:57.680
for nightly events such as operations

0:55:54.400,0:56:01.040
flash points world boss hunts

0:55:57.680,0:56:02.799
star wars trivia guild lottery and much

0:56:01.040,0:56:07.119
more

0:56:02.799,0:56:07.119
visit us on the web today at

0:56:12.490,0:56:17.839
[Music]

0:56:14.839,0:56:17.839
http://www.the2ndsithempire.com

0:56:18.440,0:56:22.960
investopedia.com says that the economic

0:56:21.520,0:56:26.000
analysts predict a big

0:56:22.960,0:56:29.680
change in crypto is forthcoming as

0:56:26.000,0:56:32.480
institutional money enters the market

0:56:29.680,0:56:34.640
there’s the possibility of crypto will

0:56:32.480,0:56:36.559
be floated on the nasdaq

0:56:34.640,0:56:38.079
which would further add credibility to

0:56:36.559,0:56:39.920
blockchain and its uses

0:56:38.079,0:56:41.680
as an alternative to conventional

0:56:39.920,0:56:44.559
currencies

0:56:41.680,0:56:46.000
some predict that all crypto needs to be

0:56:44.559,0:56:49.520
a verified exchange

0:56:46.000,0:56:51.359
traded fund at etf an etf would

0:56:49.520,0:56:53.200
definitely make it easier for people to

0:56:51.359,0:56:55.839
invest in bitcoin

0:56:53.200,0:56:58.240
but there still needs to be the demand

0:56:55.839,0:57:00.400
to want to invest in crypto which

0:56:58.240,0:57:03.119
might not automatically be generated

0:57:00.400,0:57:03.119
with a fund

0:57:03.200,0:57:06.640
what do you think where do you think

0:57:04.720,0:57:08.319
we’re gonna go with crypto

0:57:06.640,0:57:10.079
based on the discussion that we had here

0:57:08.319,0:57:12.559
what do you think its future is

0:57:10.079,0:57:13.920
um well i didn’t know a whole lot about

0:57:12.559,0:57:14.799
it going in and i’ve definitely learned

0:57:13.920,0:57:17.839
a lot today

0:57:14.799,0:57:18.880
um so i said i’d probably agree with a

0:57:17.839,0:57:19.920
lot of what you’re saying is that it

0:57:18.880,0:57:21.599
seems like it’s

0:57:19.920,0:57:23.280
the blockchain element of it seems like

0:57:21.599,0:57:24.480
it’s useful and can be used for lots of

0:57:23.280,0:57:27.520
other things

0:57:24.480,0:57:28.240
but breaking it down in terms of the

0:57:27.520,0:57:30.480
actual

0:57:28.240,0:57:31.520
reasons to invest in it and there not

0:57:30.480,0:57:33.599
really being that many

0:57:31.520,0:57:34.880
and the volatility of it too i think

0:57:33.599,0:57:36.559
unless

0:57:34.880,0:57:39.359
there’s a change in that and how that

0:57:36.559,0:57:40.960
works which i don’t know how you do that

0:57:39.359,0:57:42.319
it seems like you know the the best

0:57:40.960,0:57:43.599
thing we’re getting out of this is the

0:57:42.319,0:57:46.160
blockchain technology

0:57:43.599,0:57:47.440
right yeah and investopedia looks

0:57:46.160,0:57:50.559
specifically at

0:57:47.440,0:57:52.079
the outlook for bitcoin and they say the

0:57:50.559,0:57:54.400
future outlook for bitcoin

0:57:52.079,0:57:55.200
is the is you know subject to much

0:57:54.400,0:57:57.520
debate which

0:57:55.200,0:57:58.640
we kind of agreed on here while the

0:57:57.520,0:58:01.280
financial media

0:57:58.640,0:58:02.559
is proliferated by so-called crypto

0:58:01.280,0:58:04.319
evangelists

0:58:02.559,0:58:06.880
harvard university professor and

0:58:04.319,0:58:08.720
economic of economics and public policy

0:58:06.880,0:58:11.040
kenneth rogoff

0:58:08.720,0:58:11.760
suggests the quote overwhelming

0:58:11.040,0:58:14.960
sentiment

0:58:11.760,0:58:16.240
among crypto advocates is that the total

0:58:14.960,0:58:18.160
market capitalization of

0:58:16.240,0:58:19.920
cryptocurrencies could explode over the

0:58:18.160,0:58:23.200
next five years

0:58:19.920,0:58:26.480
rising to 5 to 10 trillion dollars

0:58:23.200,0:58:28.559
which is you know astronomical

0:58:26.480,0:58:29.599
the historic volatility of the asset

0:58:28.559,0:58:32.960
class is

0:58:29.599,0:58:34.720
uh no reason to panic he says so he

0:58:32.960,0:58:37.040
tempered his optimism

0:58:34.720,0:58:39.119
with that of the crypto evangelists view

0:58:37.040,0:58:41.440
of bitcoin as digital gold

0:58:39.119,0:58:43.040
calling it quote nutty yeah that’s the

0:58:41.440,0:58:44.240
official economist turn that is the

0:58:43.040,0:58:46.960
official term

0:58:44.240,0:58:48.960
yeah uh stating its long-term value is

0:58:46.960,0:58:51.200
more likely to be a hundred dollars and

0:58:48.960,0:58:53.920
a hundred thousand dollars

0:58:51.200,0:58:55.599
rogoff argues that unlike physical gold

0:58:53.920,0:58:57.760
bitcoin’s use

0:58:55.599,0:58:59.200
is limited to transactions which makes

0:58:57.760,0:59:01.200
it more vulnerable

0:58:59.200,0:59:02.799
to the bubble like to a bubble-like

0:59:01.200,0:59:04.760
collapse

0:59:02.799,0:59:08.079
additionally the cryptocurrency’s

0:59:04.760,0:59:10.640
energy-intensive verification process

0:59:08.079,0:59:11.280
is vastly less efficient in systems that

0:59:10.640,0:59:13.599
rely

0:59:11.280,0:59:15.119
on a trusted central authority like a

0:59:13.599,0:59:18.559
central bank and i think that’s

0:59:15.119,0:59:19.359
that’s really a great place to make that

0:59:18.559,0:59:22.720
distinction

0:59:19.359,0:59:27.200
is that the value or the

0:59:22.720,0:59:30.559
the viability of a bitcoin is

0:59:27.200,0:59:32.559
in its computational authority

0:59:30.559,0:59:33.760
whereas the value of a traditional

0:59:32.559,0:59:36.799
currency or stock

0:59:33.760,0:59:38.640
is in its institutional authority

0:59:36.799,0:59:40.720
and being decentralized with no

0:59:38.640,0:59:42.079
institutional authority you have to rely

0:59:40.720,0:59:44.480
on that encryption

0:59:42.079,0:59:45.520
to to know what the value is and to know

0:59:44.480,0:59:48.880
that it’s a legitimate

0:59:45.520,0:59:50.000
transaction what are your thoughts on

0:59:48.880,0:59:51.280
that

0:59:50.000,0:59:53.520
i mean it makes a lot of sense right i

0:59:51.280,0:59:55.920
mean even this guy that we just quoted

0:59:53.520,0:59:57.280
he he starts off with uh towards the

0:59:55.920,0:59:57.760
more optimistic side saying you know it

0:59:57.280,0:59:59.200
could be

0:59:57.760,1:00:01.440
trillions of dollars in the next couple

0:59:59.200,1:00:02.799
years but then once he thinks about it

1:00:01.440,1:00:03.359
it seems like he tempers it being like

1:00:02.799,1:00:05.200
well

1:00:03.359,1:00:06.799
it’s also very volatile and you know

1:00:05.200,1:00:08.559
he’d say the word bubble

1:00:06.799,1:00:10.079
and that kind of got me thinking of like

1:00:08.559,1:00:10.960
maybe maybe this is a bubble maybe it

1:00:10.079,1:00:12.559
will

1:00:10.960,1:00:14.640
maybe it has the chance to collapse and

1:00:12.559,1:00:16.960
especially with it being like uh

1:00:14.640,1:00:18.480
so nebulous too that it might even lend

1:00:16.960,1:00:20.319
itself further to a collapse

1:00:18.480,1:00:22.160
like uh you know com and things like

1:00:20.319,1:00:22.640
that back in was like the 90s right when

1:00:22.160,1:00:25.440
that happened

1:00:22.640,1:00:26.559
late 90s yeah yeah so maybe i mean i

1:00:25.440,1:00:28.160
hope that doesn’t happen because it

1:00:26.559,1:00:29.359
seems like it’s

1:00:28.160,1:00:30.720
you know it’s it’s interesting

1:00:29.359,1:00:32.000
technology i hope that it doesn’t

1:00:30.720,1:00:33.119
completely collapse and if it does

1:00:32.000,1:00:35.680
collapse maybe

1:00:33.119,1:00:37.040
it can come back in some way um but yeah

1:00:35.680,1:00:38.160
it just seems like overall it’s better

1:00:37.040,1:00:41.680
to just be safe than sorry

1:00:38.160,1:00:42.000
sure yeah um i think you know we both

1:00:41.680,1:00:43.359
agree

1:00:42.000,1:00:45.599
that there’s probably a lot more

1:00:43.359,1:00:47.880
scrutiny to be to be paid to this

1:00:45.599,1:00:50.480
bitcoin’s main benefits of

1:00:47.880,1:00:51.520
decentralization uh and transaction

1:00:50.480,1:00:53.760
anonymity

1:00:51.520,1:00:55.680
have also made it a favorite currency

1:00:53.760,1:00:57.359
for a host of illegal activities

1:00:55.680,1:00:59.839
including money laundering

1:00:57.359,1:01:01.040
drug peddling smuggling and weapons

1:00:59.839,1:01:02.559
procurement

1:01:01.040,1:01:05.040
this has attracted the attention of

1:01:02.559,1:01:06.240
powerful regulatory and other government

1:01:05.040,1:01:08.160
agencies

1:01:06.240,1:01:10.000
such as the financial crimes enforcement

1:01:08.160,1:01:11.440
network the sec

1:01:10.000,1:01:13.599
and even the fbi and department of

1:01:11.440,1:01:16.799
homeland security

1:01:13.599,1:01:19.760
in march of 2013 when this was an infant

1:01:16.799,1:01:20.880
state here the financial crimes

1:01:19.760,1:01:23.760
enforcement network

1:01:20.880,1:01:25.119
issued rules that defined virtual

1:01:23.760,1:01:27.839
currency exchanges

1:01:25.119,1:01:29.040
and administrators as money service

1:01:27.839,1:01:30.799
businesses

1:01:29.040,1:01:32.559
bringing them within the jurisdiction of

1:01:30.799,1:01:34.160
government regulation

1:01:32.559,1:01:36.240
in may of that year the department of

1:01:34.160,1:01:39.359
homeland security frozen account

1:01:36.240,1:01:40.960
of mount gox the largest bitcoin

1:01:39.359,1:01:43.200
exchange of the time

1:01:40.960,1:01:44.000
that was held at wells fargo alleging

1:01:43.200,1:01:47.599
that it broke

1:01:44.000,1:01:49.119
anti-money laundering laws um

1:01:47.599,1:01:50.880
new york’s department of financial

1:01:49.119,1:01:53.359
services issued a

1:01:50.880,1:01:54.400
subpoenas to 22 emerging payment

1:01:53.359,1:01:56.480
companies

1:01:54.400,1:01:57.440
many of which handled bitcoin asking

1:01:56.480,1:01:59.520
about their

1:01:57.440,1:02:02.640
measures to prevent money laundering and

1:01:59.520,1:02:05.520
ensure consumer protection

1:02:02.640,1:02:06.000
so these are very real cases out there

1:02:05.520,1:02:08.799
that the

1:02:06.000,1:02:11.440
government fearing what you can do with

1:02:08.799,1:02:14.000
this cryptocurrency and and they’re

1:02:11.440,1:02:15.520
fearing it under the guise of illegal

1:02:14.000,1:02:19.119
activity

1:02:15.520,1:02:20.400
um which is legitimate but their fear

1:02:19.119,1:02:23.680
goes a lot deeper than just

1:02:20.400,1:02:24.640
illegal activity um their fear goes to a

1:02:23.680,1:02:26.799
lack of control

1:02:24.640,1:02:28.880
lack of regulation the federal

1:02:26.799,1:02:29.599
government does not like things it can’t

1:02:28.880,1:02:31.119
regulate

1:02:29.599,1:02:32.799
yeah and it seems like they’ll they’re

1:02:31.119,1:02:34.319
most likely going to use the crime angle

1:02:32.799,1:02:35.760
to get their foot in the door right for

1:02:34.319,1:02:37.680
increased regulation and they were doing

1:02:35.760,1:02:39.359
the same exact thing with encryption on

1:02:37.680,1:02:41.680
your personal phones

1:02:39.359,1:02:42.559
and and even the encryption on your

1:02:41.680,1:02:44.559
phones are taking

1:02:42.559,1:02:47.520
even a step further and they’re they’re

1:02:44.559,1:02:50.079
hammering home this whole idea of

1:02:47.520,1:02:51.280
child pornography and child exploitation

1:02:50.079,1:02:53.119
and that’s why

1:02:51.280,1:02:55.119
you know let’s do it for the children

1:02:53.119,1:02:56.640
for the children right and that’s that’s

1:02:55.119,1:02:59.920
really what they’re hammering home

1:02:56.640,1:03:01.200
to try to to crack your encryption

1:02:59.920,1:03:03.599
but we’re looking at the same type of

1:03:01.200,1:03:06.640
thing here so i think

1:03:03.599,1:03:09.200
unregulated currencies like bitcoin that

1:03:06.640,1:03:10.720
are speculative and have a potential for

1:03:09.200,1:03:14.319
high value

1:03:10.720,1:03:16.400
are much more likely to come under the

1:03:14.319,1:03:18.799
scrutiny of the government than

1:03:16.400,1:03:20.480
a transactional thing like dogecoin

1:03:18.799,1:03:23.200
where people are using it for

1:03:20.480,1:03:24.240
legitimate things and it doesn’t it

1:03:23.200,1:03:28.000
doesn’t have

1:03:24.240,1:03:31.839
enough power behind it to really

1:03:28.000,1:03:33.839
warrant being used for illegal activity

1:03:31.839,1:03:35.440
but again in the end i think it’s really

1:03:33.839,1:03:36.880
the technology that comes out of this

1:03:35.440,1:03:38.480
that’s going to be the the winner

1:03:36.880,1:03:40.400
overall

1:03:38.480,1:03:41.680
i think cryptocurrencies are i don’t

1:03:40.400,1:03:42.960
think they’re going to go away anytime

1:03:41.680,1:03:44.559
soon

1:03:42.960,1:03:46.000
but they’re not changing the economy

1:03:44.559,1:03:46.799
anytime soon governments just aren’t

1:03:46.000,1:03:48.319
going to allow

1:03:46.799,1:03:49.440
yeah that’s i mean it seems like it

1:03:48.319,1:03:50.480
would be that simple right they could

1:03:49.440,1:03:53.000
just say no

1:03:50.480,1:03:54.400
yeah so what are your final thoughts on

1:03:53.000,1:03:56.319
cryptocurrency

1:03:54.400,1:03:57.839
um well i definitely learned a lot about

1:03:56.319,1:03:58.400
it today that was kind of nice um and i

1:03:57.839,1:03:59.680
hope that

1:03:58.400,1:04:02.079
our viewers learned something too if

1:03:59.680,1:04:03.920
they were as clueless as i was um

1:04:02.079,1:04:05.119
but yeah i mean it seems like that it’s

1:04:03.920,1:04:07.119
it’s not as

1:04:05.119,1:04:09.119
future proof as you know some of the

1:04:07.119,1:04:10.880
jokes about it might make it seem like

1:04:09.119,1:04:12.160
um but you know blockchain seems like it

1:04:10.880,1:04:13.599
could be used for a lot of really good

1:04:12.160,1:04:16.880
things and

1:04:13.599,1:04:17.359
hopefully good things um and i’m curious

1:04:16.880,1:04:20.480
to see

1:04:17.359,1:04:21.920
where governments take it in the next

1:04:20.480,1:04:22.799
five to ten years if we do end up

1:04:21.920,1:04:24.960
getting

1:04:22.799,1:04:26.319
you know that trillion dollar level that

1:04:24.960,1:04:27.680
that economist was talking about

1:04:26.319,1:04:29.119
how governments are going to respond to

1:04:27.680,1:04:29.839
that and and how they’re going to take

1:04:29.119,1:04:32.480
it seriously

1:04:29.839,1:04:33.680
or you know try to outlaw it or ban it

1:04:32.480,1:04:35.920
and you know around the world

1:04:33.680,1:04:37.839
and how that’s going to affect it um oh

1:04:35.920,1:04:39.920
that is interesting to me

1:04:37.839,1:04:41.200
um so yeah it’s just a matter of you

1:04:39.920,1:04:42.720
know see where it goes

1:04:41.200,1:04:44.240
yeah and i agree i think i think a

1:04:42.720,1:04:44.799
wait-and-see attitude’s probably the

1:04:44.240,1:04:48.319
best

1:04:44.799,1:04:51.200
uh i think we should not

1:04:48.319,1:04:52.000
that elon musk you know people of elon

1:04:51.200,1:04:55.280
musk’s

1:04:52.000,1:04:57.760
nature lead the charge on this um

1:04:55.280,1:04:58.960
i mean between selling flamethrowers and

1:04:57.760,1:05:02.319
launching his

1:04:58.960,1:05:05.039
sportster into space for for politic

1:05:02.319,1:05:05.520
for uh media gimmicks and stuff like

1:05:05.039,1:05:07.520
that

1:05:05.520,1:05:10.079
uh i don’t really think he’s the

1:05:07.520,1:05:12.240
authority that we want to use

1:05:10.079,1:05:14.400
in this case here i think it’s it’s

1:05:12.240,1:05:16.880
probably best to

1:05:14.400,1:05:17.440
if you’re interested in investing in it

1:05:16.880,1:05:20.720
i would

1:05:17.440,1:05:23.920
suggest you do so very cautiously

1:05:20.720,1:05:26.240
i would not liquidate your 401k and dump

1:05:23.920,1:05:29.039
it into bitcoin that’s for sure

1:05:26.240,1:05:30.319
um but you know it’s speculative uh

1:05:29.039,1:05:33.359
there’s a chance that you can make some

1:05:30.319,1:05:34.960
money off of it today

1:05:33.359,1:05:37.119
why not get in on it like everyone else

1:05:34.960,1:05:38.720
does you could do it smartly

1:05:37.119,1:05:40.400
so but that’s what we had today did you

1:05:38.720,1:05:42.799
have anything else you wanted to discuss

1:05:40.400,1:05:43.599
no i think we did it all right i think

1:05:42.799,1:05:46.160
that is it

1:05:43.599,1:05:48.400
uh before we go i would ask folks once

1:05:46.160,1:05:50.960
again to subscribe to the podcast

1:05:48.400,1:05:51.760
audio versions can be found as insights

1:05:50.960,1:05:54.720
into tomorrow

1:05:51.760,1:05:57.119
video versions as insights into things

1:05:54.720,1:05:58.000
we’re on apple podcast spotify google

1:05:57.119,1:06:01.200
any place you

1:05:58.000,1:06:02.799
get your podcast feeds from i would also

1:06:01.200,1:06:04.319
ask you to give us your feedback let us

1:06:02.799,1:06:04.880
know how we’re doing you can email us at

1:06:04.319,1:06:07.520
comments

1:06:04.880,1:06:08.319
insights into things.com you can get us

1:06:07.520,1:06:10.799
on twitter

1:06:08.319,1:06:12.480
at insights underscore things we stream

1:06:10.799,1:06:14.400
six days a week on twitch when i don’t

1:06:12.480,1:06:16.240
have technical difficulties like this

1:06:14.400,1:06:19.039
week

1:06:16.240,1:06:20.240
on twitch we are at twitch.tv insights

1:06:19.039,1:06:22.960
into things

1:06:20.240,1:06:24.000
uh if you have a amazon prime membership

1:06:22.960,1:06:26.079
you do get a free

1:06:24.000,1:06:27.920
twitch prime monthly we would love it if

1:06:26.079,1:06:29.760
you sent that our way

1:06:27.920,1:06:31.440
helps us to keep the lights on around

1:06:29.760,1:06:33.039
here and we have a lot of really

1:06:31.440,1:06:35.680
bright hot lights around here we have to

1:06:33.039,1:06:38.079
keep on uh we don’t use it to mine

1:06:35.680,1:06:39.920
bitcoin i promise you that

1:06:38.079,1:06:41.200
um you can get us on facebook at

1:06:39.920,1:06:43.039
facebook.com

1:06:41.200,1:06:45.280
insights into things podcast we’re on

1:06:43.039,1:06:48.680
instagram at insights into things

1:06:45.280,1:06:50.720
or you can get us on our website at

1:06:48.680,1:06:52.799
http://www.insightsintothings.com

1:06:50.720,1:07:01.839
and that’s it we’re done another one of

1:06:52.799,1:07:01.839
the books

1:07:12.839,1:07:15.839
so

1:07:29.520,1:07:31.599
you

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.