You were just naming like different industries for that are potentially
going to integrate blockchain for the better, for everyone. Is there one
Like health care, government. Is there one of those that you think needs it the most?
Anything that’s tied to data or the individual, so I think identity will be very important because
the the people who
Everyone’s gonna anybody who’s affected by data is
Going to have a much improved situation because that data will be on the blockchain
permanently there, tied to each individual and
Once that’s the case that can help with all sorts of other industries whether it’s healthcare or commerce or
Improve retail experience.
It could be any number of different things. They could could be helped just because they will have better data on you
What do you think needs to happen to push this kind of adoption to make it happen faster?
Is it a competition that you were talking about but like what if people need to do to push it. Let’s grade the US I think that
We are pushing we who are in the industry are pushing as hard and fast as we possibly can. I’m sure every
entrepreneur that was in that conference was
really driven, pushing, making something really interesting happen and
It’s just that there are all these uncertainties created by these governments that are run by like the
grandparents of the people who are creating this new industry, and they don’t get it and
And it’s very frustrating for the people who are creating the industry so you have
you have these regulators who are
70-80 years old and they are the ones telling these
Twenty-something year olds what they should be doing, but they’re the same people who have given them huge
poor education not appropriate for their work and life
And now they’re trying to tell them not to do something that is actually creating a whole new economy
I mean if I’m a millennial. I’m looking I’m deeply in debt
I have an education that’s not appropriate to the jobs that I have to go find
And I’m kind of it’s like I’m lost
But there’s this big opportunity all of a sudden. There’s there’s Bitcoin there’s crypto
there’s a whole new world out there that hasn’t been destroyed by the regulators
Now the regulators are coming in and they’re making it very difficult on people
But any country that gets highly regulated gets poorer
More poverty. And country that’s free gets richer and
I think the US is trying to figure this out. I know Japan has figured out: make it free,
Make us rich
Japan thinks I have to control and regulate. I mean China says I’ve got to control and regulate and
They’re going to create a bunch of poverty
So and it usually takes 20 years so by that time they’ve moved on but
But they are ruining the lives of many many people by putting in too many controls or too many restrictions or too many regulations
So when you see
The FDA or the SEC or FASB. Any of these big
Regulators come in
they are destroying the
potential for growth and wealth in their country
So you ask the question what’s keeping this from happening?
It’s the uncertainty created by all of these regulators
That is slowing down progress. It is not allowing enough of this
creativity to flourish
They’re in competition with all the other
countries and regulators of the world and so they the lighter touch
the more likely you and I are to move to those countries or
To work with those countries or to be a part of those countries
Just to clarify, you have brought up Kazakhstan as an example. Can you explain that choice just because given in light of the recent
Sort of threat to ban exchange
Right I’ve asked about that because I talked to the Prime Minister of Kazakhstan, and I told him about
Estonia and all of these interesting this virtual governance thing that can happen and I said and Kazakh
Means free and it this is this should be a free country right it’s the Kazakhstan. It’s the free country and
You want this to be free because you’ll end up with a wealthier more prosperous country
And why not have you know a certain number of Cossacks?
But then a billion virtual Cossacks and have them all be a part of your
Compete with all those virtual countries for them, and he was all for it
So I thought that was going to happen
now some lower down regulator has now tried to heavily regulate crypto and
It’s a proposal. It’s not law and hopefully he’ll just be slapped down
and you know sent on his merry way and
You know he’s like the old world
Regulator who doesn’t get that you’ve got to have a very light touch when you’re regulating an ICO for instance
It shouldn’t be the equivalent of an IPO.
An IPO affects
hundreds of thousands of people. The companies are worth tens of billions of dollars
An ICO is usually…
You know, two girls and a dog. You know, getting something started
It’s not like we have to we have to protect everybody from themselves. It’s just people just kind of getting going I’m
Since you’ve mentioned some US regulators, what you think about
The next step with regulation in the US. Maybe specifically for ICOs.
Well my advice to the SEC is go ahead regulate them all but make it a one-page document
that anyone can fill out. Don’t make it so that these two girls and a dog have to go hire a
Million dollars worth of legal fit legal work to just get approved
It makes no sense
It’s just you just have them go ahead and register, so you have the data that you need
But then let them go and then if they start affecting too many people they become a problem
then go ahead and come in and say okay, now you have to go our next level of
regulation or something else
But easier in. Let’s let these things flourish who knows what what creativity is going to come out of these ICOs
I mean when the internet came along the governments were trying to shut it down and
All of a sudden think of what’s happened with the internet all of our lives are so much fuller and more interesting and more dynamic
I remember I’d spend hours and hours waiting for
Somebody to come pick me up when my car broke down
Now if your car breaks down you leave it on the side of the road you go boom
I got an Uber. It all happens so quickly that never would have happened if the internet hadn’t happened so this is
And if we hadn’t let the internet go, let it be free. The freer the richer.
Freer freedom equals prosperity
Regulation equals poverty
Have you seen in your personal experience
businesses moving away from the US?
– Oh tons. Oh and moving away from California.
That’s why I want three Californias. I want a fresh start
everybody wants to leave California
Anybody in business wants to leave California, because even though the weather is awesome
And their friends are probably here. All of the incentives are to leave
And also to leave the US, but that’s different set of incentives
Blockchain-wise or in general?
In general. The taxes are higher here, the services are worse
Education is worse
The roads are poor. All of that.
You go to Texas. They have no
No personal income tax, they have great roads. They have a
free government encourages innovation
You need that
New York where you guys are they they have the problem that California does
They are over regulated
They’re on top of each other they they don’t let anybody do anything without filling out forms to do it
But it’s a good thing about the states because they have to now compete for us
Used to be pretty much all the states were competing and felt that way and they worked hard to
Provide good service to you.
When was the last time a
Bureaucrat said to you: “What can I do to make your life better?”
“How can I improve your business environment?”
They used to do that.
25 years ago, I remember I walked into a government office with my father
And they said: “how do I improve your business environment? How do I make your home life better?”
“How can I improve your your child’s education?”
That was that was the attitude that government had and that’s why my father has such
Great feelings about the government
And the reason I don’t is because I saw that switch
Like all of a sudden it went from “what can I do for you” to “what are you gonna do for me?”
When was that?
– About 20 years ago about 20 years ago all of a sudden
It was like: “Have you filled out form 12 CB? Sorry,
Oh, and I think you have to talk to this regulator too because I don’t think we’re gonna allow you to have a party there”
There is a false separation of these two things
There are country’s being like:
“Yes, blockchain, no crypto” like China. I mean, that’s
a good example, but China is not the only example. So what is wrong with that?
China’s old government under Deng Xiaoping was free
They said a few of you will get rich first. Let’s create a
Harmonious environment, let’s grow, let’s have free markets that kind of thing. That was awesome and it created
40 years of prosperity and China is like one of the most advanced countries in the world now
Well now they have the opposite
They have a control freak government or at least the guy at the top and that permeates the government
They’re not letting money out they’re not letting people use crypto.
They’re not letting people use Bitcoin to pay
And what that does is it pushes out all the best entrepreneurs.
Pushes them to wherever and
And it creates more poverty there because all of those people then are constrained.
If you’re constrained you’re poorer
If they say you can’t move
You’re gonna starve, and that’s pretty much what you know too much regulation will do for you
and so that’s China.
But the separation of blockchain and crypto, does it feel like artificial?
Can you talk a little bit about it?
– It makes no sense. I mean if you’re gonna run something on the blockchain
You’re gonna need Bitcoin to do it if you’re going to do something in Bitcoin. It’s using the blockchain
These are intertwined
now there are
There are some other blockchains being created, which is great — competitive blockchains
I’m a believer in having competition because I as a consumer end up with a better service
But somehow trying to separate those and say: “oh, we’re gonna allow all the technology in we’re just not going to let you use it”
What are they thinking?
They’re basically saying yeah, go keep creating stuff
We’re not gonna let you use it, and we’re not going to let you have money leave our country, so you know
Where’s the benefit for an entrepreneur there? That’s why they’re all buying houses in Palo Alto
All the Chinese are saying well
Let’s get out of there or they’re moving to Japan where they’re welcome. All the young people are moving to Japan
They’re saying: “wow this government accepts Bitcoin as a national currency. I want to be a part of that”
It has just more clear setup for regulations and guidelines. Exactly.
In terms of of different cryptocurrencies as you mentioned competition
Recently Edward Snowden
He criticised Bitcoin’s blockchain for being
what he said was “devastatingly public”.
– What?? Who’s listening to him
What this guy just opened up all that information
He made it dangerous that information. He just opened it all up right so
So wait, I this is totally counter his
What I thought would be his philosophy, which is hey we’re open transparent were
You know this is the way the world should be it’s open and transparent and decentralized and whatever. Bitcoin is perfect for that.
So he’s I don’t know why even listening to that guy it’s a little like me
You know do we listen to the guys guy who runs the biggest bank in the world?
When he says we shouldn’t use Bitcoin. Why listen to that because the guy is realizing that people are taking pieces
1%, 2%, 5% of their money out of his bank and putting it into crypto
Disinterested he’s very interested in this and he is very
Nervous that he’s going to lose all those customers. And he will.
Over time he will. There’s no reason this it just feels like
crypto generally will replace all fiat
because it’s just better currency and all the best engineers in the world are working on that
They’re not working on how to improve
services for the dollar
So I’m curious based on that what you think
What you just said fiat will eventually be replaced by crypto. Is that what you see?
By the way it is a hundred trillion dollar market so that means
That we have a long way to go
In the crypto market we’re now in the hundreds of billions. It’s like
It’s got a thousand times on what it is now
but in terms of how that happens. Do you see that it is important that one currency emerges, like Bitcoin.
No, I like competition I think it’s great I think Bitcoin is clearly the
Leader and it will be the standard by which all the other currencies will have to compete
It’ll be the equivalent of
Microsoft and software, you know that kind of thing
But it could end up being
Yahoo for search you know where Google came in and got a bigger share so things can happen but
you know when you have that front position and
Whenever there’s a new technology you add it to
That currency. It’s very likely that Bitcoin will be the largest and biggest currency because they have a network effect
It grows as the network grows
So you don’t see there being any need for one universal currency.
No no no no
I like the idea that they’ll have to they’ll all have to compete with each other and I like the idea that they’ll all be
tradable into each other and
You know and now they’re tradable into Fiat too, but I think that’ll be less important over time I think
More important once more companies like like you can get a Kentucky Fried Bitcoin bucket,
which is only available to be paid for in Bitcoin
In Canada it’s a Canadian thing
And then yet, then there are all these houses and yachts
And whatever that are all they I get these email only
Available in Bitcoin you can’t like pay dollars for them. I think more and more that’ll happen and
and we’ll be in a position where
Where people laugh at you if you try to pay fiat currency for your coffee
What about the volatility of cryptocurrency. How do you see it being stabilized
So that it can be used as money more easily you can buy coffee and not be worried
about how much you are spending tomorrow for example.
Or is it going to be like we have
A currency that we use as money and a currency that we use to store value
To separate out the use cases of money
Whenever I hear this volatility question, I think: “one bitcoin is still just worth one Bitcoin”
it is very stable all these other currencies these fiat currencies are volatile against it and
Falling away over time and so when they say volatility. I think yeah, they’re panicking they go up. They go down
One bitcoin is still one Bitcoin and it will continue to be
I’m not really thinking that it’s volatile. It’s Bitcoin, and it should be
Spent as you need to spend it
Thank you so much for your time!
Good yeah, my pleasure!
Give you a fist pump!