BIGGEST BITCOIN MISCONCEPTIONS | Barack Obama, J. Dimon & Winklevoss
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.