Oh
good morning good morning morning Merry
Christmas
it’s almost New Year today I thought we
would talk about the biggest
misconceptions when it comes to Bitcoin
do you think Bitcoin is a fraud yes the
biggest problem I see with Bitcoin why I
would never buy it is that they could
steal them from your like their hack
into your phone or something I hope I
know people that have lost all their
money like that so full disclosure I
have invested a little bit in Bitcoin I
have stored it on the external hard
drive so it should be completely safe
for hacker attacks so don’t even try I
feel like this is really important to
put out there in the beginning of this
video seeing us there’s two camps as the
people who say Bitcoin is a conspiracy
theory why is Bitcoin a fraud here’s the
reason governments they like to control
the currency they controlled through a
central bank they also like to know who
has it wait until someone gets hurt wait
until it’s used for illicit purposes
which is somewhat useful there’s
purposes they close it down you both
made the point when you were on the
morning show now people could put their
money where their mouths are right
because you’ve got people like Jamie
Dimon calling Bitcoin a fraud so if you
think it’s a fraud go short it
absolutely yeah we’ve been working
really hard to give Jamie Dimon
opportunity to short Bitcoin and anybody
who says that you know it’s a fraud or a
bubble you can go now put your money
where your mouth is and that against a
Bitcoin we think of Bitcoin as gold and
I think if you look at gold some people
point to an intrinsic value of gold but
that really doesn’t explain the value of
gold it might explain 10-15 percent of
the actual value of gold gold has value
because we all agree that it has value
and we’ll all accept gold and as a
collective acceptance and and value that
way Bitcoin in addition to being
increasingly accepted around the world
and more people coming to the system by
the day has the minor mining Network
which is one of the largest computer
networks in the world and it’s backed by
cryptography a lot of people would look
at the US dollar or government backed
currencies and say a government in
counterparty risk the average lifespan
of a currency is roughly 27 years look
no further than
the Zimbabwe dollar they have I think a
trillion dollar bill or Venezuela the
the history of most currencies is really
terrible and I must admit I’m probably
in that camp I really do believe that
this has a lot of positive and very very
transparent features that I feel the
current economic system has been lacking
since it really started all that being
said this will be my top five
misconceptions when it comes to Bitcoin
or crypto in general let’s get into it
and yes if you new to the concept this
is what I call a block you mentary if
you’re new to the channel then subscribe
it’s extremely difficult to make these
right if my parents watch this video
they’re probably going to give me a hard
time about that so blog you mentary the
concept is pretty simple we talked about
in important topic throughout my day and
yeah it does get a little bit confusing
sometimes to do feel free to ask any
questions you want in the comment down
below
first of all before I Drive anywhere I
really love to look into the lens and
have that yeah I’m not able to do that
while I’m driving
and I do have to go to a meeting in
Hanning today so feel free to hate me
for looking this way when I’m talking
but I have to do that it’s required by
law I’m sorry the first thing I want to
talk about today is the fact that
everyone is saying big going to bobble
bitcoins a bubble the size and scale of
this initial yes rally we’ve seen in
Bitcoin stepping away from yesterday
versus other stock market rallies is
what put it that in perspective
I mean in terms of stock market there’s
just no example of any stock market of
any breadth doing anything remotely like
this if you begin to look into
commodities which are more like what
people perceive Bitcoin this sir as
being it’s still pretty much off the
charts a gold or silver apart from when
you bring in tulip bulbs which is done a
lot of analysis on which are also
commodities of a kind yes if you look at
the tulip mania in in Holland in the
1600s there were a number of things that
were very similar tulips were new to
Europe at the time there were such
things as tulip derivatives you could
get certificates for taking
control of juice they changed the
regulations and yes you saw the final a
few months of the tulip craze you did
see a rise that was even greater than
what we’ve seen in the last year or so
in Bitcoin keep in mind I’m not an
expert on this but everything that I
have been able to find that I feel like
is legitimately transparent points
towards is not actually being a bubble
the issue is it can become a bubble if
it all fails the system itself is not
perfect so if that is the case let me
bear with it let me explain this
basically what Kryptos and blockchain
technology allows is for a decentralized
economic system where we don’t need
banks or governments actually very scary
I know and the question we now have to
ask is if technologically it is possible
to make an impenetrable the device or
system where the encryption is so strong
that there’s no key there’s no door at
all then how do we apprehend the child
pornographer how do we disrupt the
terrorist plot what mechanisms do we
have available to even do simple things
like tax enforcement because if in fact
you can’t crack that at all government
can’t get in then everybody’s walking
around with a Swiss bank
what’s really really really great about
this the entire system can be
transparent and we can see everything
that’s going on at any time meaning no
one can defraud in taxes we can see what
assets every person have at all times
which I see a tremendous value in now
keep in mind I do have Bitcoin I do have
skin in the game
I am also not an expert so don’t take
everything I say as a hundred percent
undoubted truth I really do encourage
you to check up on everything I say
because I do try and make this as
transparent conversation as possible see
the people who are against this the
people who say that kryptos in general
are a bubble are people who most of the
time are either bank CEOs or very very
rich individuals who honestly stand to
lose their entire purchasing power if
this system is put into place and they
don’t have any of it converted into
Bitcoin in time let’s just go with
Bitcoin I mean we could talk about the
theory more like coin and if you’re a
more like I might actually be better
examples because the theorem has the
smart contracts which could run entire
governments and render those literally
useless or like coin where we know the
owner and the owner just sold all of his
own shares in the light point meaning he
no longer have any financial incentive
to actually make this become a thing but
he’s still working on it because he sees
the value this could create for equality
and for general standard of living
throughout the world see if you’re a
person living in this world you
put your trust or your purchasing power
in these middlemen who let’s just be a
little bit frank keep messing up in the
sense that we have boom bust cycles we
have crisis then we have booms and then
we have a new crisis that’s actually not
because they come that’s because that’s
how the economic system works that’s how
our entire society works and that comes
down to a lot of different things some
economists say it’s because well as an
individual you would never deduct
yourself in pay so if your pay
consistently grows throughout your life
and it can never go the other way then
so does the items you purchase with your
wealth have to always inflate a little
bit in prices and that does it make some
sort of sense the issue with that is
that is not really what’s going on see
what’s going on is that the middlemen or
well the Federal Reserve’s really the
people that can inflate the fiat
currencies have the power to steal your
purchasing power let’s take an example I
feel like I need to explain this if
there’s only a hundred bills in
circulation a hundred bills in total in
this example let’s say you have the
hundred bills that means you can buy
anything in the world that you have all
of the purchasing power in the world if
the bank then decides to print another
hundred they have effectively cut your
purchasing power in half you can now
only buy half as much for the hundred
dollars then you could previously that
is the dangerous part that is why people
see such an immense value in cryptos
because Spit coin Bitcoin because
bitcoin cannot be inflated they are say
cap they said limit – I believe it is 21
million bitcoins
and they can never be mined a second one
and this kind of leads me into my second
misconception the first one being is it
a bubble where my answer really is it is
a bubble until it actually takes over
the financial system if you see the
interest in that and most people will
like as soon as the next bust cycle
happens everyone is going to jump on
crypto because Kryptos will not lose
their value there is no middleman there
is no government that can inflate that
value take Venezuela for instance – well
I saw a sixteen hundred percent
inflation rate this year that is insane
you have you could have worked for 50
years put all your purchasing power all
your wealth into this Venezuelan
currency and then within 48 hours boom
all of it is gone and you can go down
and spend millions and buy what a loaf
of bread no one can keep up with that
and it destroys lives so as soon as
people understand this distinction no
one is gonna want to use the fiat
currencies anymore the average lifespan
of a currency is roughly 27 years and
this is a very dangerous thing you need
to keep that in mind because the banks
and the people who are making money on
the current economic system or the
people who have money the current
economic system are not interested in
this happening so they kind of have to
debunk it or make it sound like their
tulip fever in the 1600s that oh it’s
gonna be a bust it’s a bubble it’s no
it’s never gonna work out with me more
or less deeds match tulips but that’s
the one example you can come up with
them any significant and of course we
know how that the tulip bulb which was
with a catastrophic fall of course now
if we try and work out some of the
possible reasons that could justify this
huge run-up in bitcoin Yun that you kind
of point to in the article is of course
the unprecedented printing of money that
we have had that many thought would
either lead to a spike in inflation or
gold prices clearly inflation hasn’t
spiked is that a possibility that that
could explain this and it’s just that
this is the currency or commodity that
is reacting to that huge wave of money
there’s certainly something to that yes
although I’m still not clear why you
wouldn’t just make it gold which has
worked very well when have you’ve been
worried about
the basement of paper currencies in the
past and gold of course for the last few
years has done nothing special at all I
think where it does fit in and I’ve been
getting an awful lot of feedback about
what I’ve been writing obviously where
it does fit in is it fits with the mood
of radical distrust in central banks and
I can’t blame people for feeling
distrustful after the last 10 years and
in government’s more broadly there’s
this very exciting possibility that this
fits in with the notion of a world
without governments and if you are in a
stage where you really don’t trust
democracy let alone central banks
there’s something exciting about Bitcoin
that it was misconception number one
misconception number two is that it’s a
bad thing even if it is a bubble because
it really is when you think about any
system any store of value in this world
it’s it’s effectively a bubble housing
is a bubble the internet was a bubble it
is still a bubble everything that has
value has to be a bubble it has to be
inflated because demand is what drives
it supply and demand is put together in
this world of scarcity I think everyone
knows what I mean
they’re simply going to be a connection
between how much we actually have and
how much we’re willing to pay if it’s
easy to get no one’s gonna put on a pail
up for it when we talk about this bubble
as being a bad thing it is actually
because in a Fiat system where you can
get into these boom bust cycles people
lose everything they have when it goes
bust misconception number three is that
miners can take advantage of the system
there is a thing called bad miners
miners can actually attempt to take over
the system but doing that is by design
almost impossible because that person or
that community of bad miners needs to
take on the rest of the world and there
are so many they need to consistently
beat out the rest of the world who are
good miners and the entire system the
entire reason why the equations keep
getting harder and harder is because it
needs to cost a certain amount of
electricity to run the algorithms to
keep making the incentives to be bad
smaller see you get paid in Bitcoin
meaning your incentive to destroy
Bitcoin is diminished you get paid a
fixed rate – cannot change the rate they
get paid you kind of decide the rate
when you make the transaction this does
also once again diminish the incentive
for the miners to actually be bad
because they cannot control the prices
that is the biggest misconception I see
in newspapers here in Denmark right now
everyone is talking about how oh Satoshi
Nakamoto the inventor of Bitcoin
or well crypto in general really he
created a lecture and we don’t really
know who it is it’s an acronym it could
be a group of people it could be a
person we don’t really know and to be
quite frank I don’t really care because
the whole argument that we don’t know
who it is so here’s goes he’s just gonna
get super rich from this I mean he was
the inventor I don’t mind him getting
rich I kind of feel like he deserves to
get rich since he invented the system
just like every other system ever if you
invent something new you deserve to get
credit for it and live off of the
monetary gains you should get from that
when we then talk about these bad miners
that argument really also goes out the
window and when it comes to people the
biggest misconception I’ve actually
probably this should actually really
have been number one but you get one out
but this is just a conversation okay so
now we’ve debunked the bad miners we’ve
debunked the whole bubble mentality and
we’ve debunked the whole tulip fever oh
it’s gonna bust thing not saying go
short because I know Jim Chanos lives up
there yeah yeah Bitcoin can tell hundred
thousand dollars a Bitcoin before it
goes down so it’s not a advice and what
you do the next thing I want to talk
about is the fact that Bitcoin can be
used to do illegal stuff if you actually
look at the graphs Bitcoin is not number
one when it comes to buying guns or
drugs or anything because most of the
people who actually use Bitcoin to
finance their illegal activities make
sure that there’s actual proof in the
blockchain that they have done something
illegal at this time
there’s a timestamp and there’s a
transaction number and there’s an amount
these three things will be in the
blockchain forever this is why
blockchain technologies are way way way
better at actually catching criminals
once they use crypto currencies to
finance it if they had just used cash
there would be no way of tracking it if
we didn’t know the individual number on
all of the bills abused encrypt so if
you know something bad has happened you
can go back in the blockchain and check
so doing something illegal in Kryptos
it’s like putting up a sign where you
committed the crime saying the person
with this responding number got this at
this time to do this at this point and
yes you can’t really see why they got it
but trust me accountants will not have
any trouble putting those things
together so doing illegal stuff with
cryptocurrencies or Bitcoin in general
is really stupid that’s also the dumbest
misconception I would probably be a
little bit harsh and say the next thing
I really feel just boils my blood
whenever someone says it is that Bitcoin
itself will win no matter what because
of all of the things I just said that is
simply not the case see yes it is true
that I believe that a cryptocurrency
will take over the economic system at
some point simply because of all the
benefits I can transfer money to
everywhere in the world with no wait
time and almost no fees compared to
having to wait about 14 days and
almost 10% in exchange rates and
transfer fees and bank transfer fees and
there’s just immense amount of wasted
efforts going into the existing system
when it comes to exchanges and transfers
and the entire middleman business really
is obsolete today because of this crypto
because of the possibilities the crypto
really offers so I do see a
cryptocurrency take over at some point
but that it is going to be Bitcoin
simply because it’s the most famous one
it’s just not the case we don’t know
what crypto is gonna take over
it could be aetherium it could be like
coin it could be dogecoin for whatever
manner thing it could be any coin
because making a cryptocurrency is
incredibly easy I have actually created
my own I can output it I’ll put it here
I call it the our coin I created this in
probably half a day it does not take
that long this of course is missing the
whole mining bit like I need to actually
have the computing power to run all of
these algorithms but and the algorithms
keep getting harder and harder but this
is essentially all the blockchain needs
to have to function so they really can’t
there’s no killing the concept even if
they outlaw Bitcoin or cryptos in
general they’re still really no stopping
it because it’s a decentralized system
you can’t it’s like the internet you
can’t turn off the internet like that
and even an EMP wouldn’t stop Kryptos
because you can actually make transfers
on a piece of paper you don’t need the
internet or electricity really you just
need it would take a lot more time to
run the algorithms but you would still
be able to do it so we don’t know that
bitcoin is so going to win a lot of
people are assuming that it’s Bitcoin or
nothing
bitcoin is actually not in my opinion
the most attractive one right now yes
now I’m talking Danish as well I have
this entire set up it’s been working
wonders so well in fact that I’ve been
rambling for 35 minutes and now it has
no more battery I am outside where I’m
gonna have the meeting now it’s in this
building right here
I really wish this was all that has gone
wrong because I also tried to fly my
drone which was impossible because
apparently the gimbal got damaged so
this is the only footage I was able to
get I don’t know what I’ve done to
deserve this but I don’t think I can
blame the banks ah to be continued I
guess