Episode 02: Proof of Kitties

(Magical crypto)
The best thing to do is simply to HODL What’s a young pony to do
in a sea of shady ICOs? A lion’s courage can light up even
the darkest of shadows Unlike the corporate suits,
the WhalePanda is wise A Chikun dreams about the moon,
while soaring in the skies As Bitcoin sees new all-time highs (Magical crypto)
All around you see big block heads bobble (Magical crypto)
The best thing to do is simply to HODL We’ll always buy the dip And we’ll always be the best of friends! And then… He told them he was Monero Jesus [Laughs] Good one Okay Okay guys, good morning! Good evening for some of us So with us we still have Bruce Lee’s
long-lost son: Charlie Samson, who is like wannabe
the Giorgio Armani of crypto And the real cryptocurrency expert from
South Africa, Ricardo The first had really good reviews,
I was actually pleasantly surprised by it, Not too many trolls I had an entire thing planned, entire agenda and then Charlie dropped the bomb yesterday With his announcement that he didn’t have any
more Litecoins, that he had sold all his Litecoins So we discussed this a bit yesterday And apparently, half of people like it,
half of people don’t Mostly the traders are the ones
that don’t really like the idea of a developer not having any
stake in it anymore You want to elaborate on the
entire story, Charlie? From what I can tell, the people
who hated are the people who were traders They wanted Litecoin’s price to go up
to make money. So the fact that I don’t own any, means
that I don’t believe in the project And that the future is bleak,
that’s what they think So do you believe in the project? Yeah, Litecoin is my baby I want it to succeed more than
anyone else in this world. It doesn’t matter if I hold any Litecoin,
I still am fully invested in it The magazine, or publication, or whatever it
was, that said that you sold your Litecoins to avoid being investigated
for Insider trading I thought that was hilarious Well, yeah there’s one tweet that said
the reasons why I sold it is because Coinbase is investigating
me for insider trading Or at least implied that,
that’s pretty stupid But no, I mean, I did sell it for
conflict of interest reasons The fact that I own Litecoin is actually
good, is actually not a conflict The conflict is because I tweet so much And whenever I tweet, because I have like 400K followers now, potentially it can move the price I could buy Litecoin before I make
an announcement of good news, Or sell Litecoin before I make
an announcement of bad news And profit a lot from this, so I just decided
that I don’t want to think about Not tweeting something because
it could look bad So I decided that I don’t need the Litecoin,
I don’t need to make money from Litecoin I’ve made enough, and I’m
still gonna work on it So, it doesn’t matter Yeah but at the same time, when you say
you’ve made enough, that made it sound like “Oh, I’ve dumped the top,
so yeah, bye, guys, thank you” It’s hard to not dump the top, because
everything is at the top right now So everybody can dump the top right now This will definitively not be the
top of Litecoin. Probably like two years later
people will be saying, “that’s stupid of me for dumping at –what? $300 dollars?” So, we’ll see I’ve got friends who bought
Bitcoin at like $2 dollars And sold pretty much everything at,
when we broke $200 So I don’t think that fundamentally
taking profit is bad Because you can always get back in
later on if you want to take more profit If that’s your goal I don’t think you’ll kick yourself ever
for selling Litecoin and taking profit No, I mean, for me if Litecoin succeeds,
I’d be so proud of it And I’ve dedicated my life to it It’s something I’ve created, it doesn’t matter
to me that much if I make more money from it I wouldn’t be like “oh I’m sad
that I’ve sold Litecoin” I mean, I’ve made enough, I’m
happy with what I have You should have just traded, so, Tony can
show Litecoin and you show Monero -Yeah, Charlie, just think about it You sold your Litecoin for Monero,
just be honest So you tell me good things about Monero Like, you tell the news before
and I’ll buy Monero And then I tell you about Litecoin
and then you buy Litecoin Perfect, and of course there’s no conflict,
we’re just friends, we’re not family Yeah and according to Roger, insider trading
is perfectly legal so we’re good Yeah, one thing though, would you ever
consider doing the same thing, Ricardo? I didn’t believe in Monero at the beginning The code base had almost no comments, we
didn’t really know what we were doing It was a mess, but I knew that because it was
a code base it’s wasn’t based on Bitcoin And it had these really innovative
privacy features that it would pump If I’m being honest, like that
was my initial interest Was like “Hey, I’m gonna mine a
bunch of this and I’m gonna sell it when it hits Cryptsy” And then I sold a bunch to Poloniex
and Mintpol instead And so I sold a massive portion
and took fantastic profits And I’m not unhappy about that I think It was a good move at the time Because obviously I had no idea
that Monero had a greater value Subsequent to that, I’ve obviously
fallen in love with Monero, and I love the community, I love
the work that we’re doing I think that Monero is a net positive
benefit for mankind But also there’s this part of
me that’s just super pragmatic It always has been, and
so I have a selling plan When I bought Tenebrix and Litecoin, I had a selling plan When I bought Bitcoin I had a selling plan With Monero, I’ve got a selling plan I sell 5-10% every time the price
doubles from the previous point where I sold And I’ve stuck to that So it means that my stash of
Monero is not like massive, It never has been, I’ve always
worked on Monero Because I found it interesting I don’t think I’ll ever exit
completely because Even with scams that I’ve bought into And taken profit, I’ve always maintained
just a little bit at the end, or left a little bit at the end As like a HODL portion Just in case that scam happens
to pump in the future So I’ll always have a portion of Monero It’s just never gonna be a massive
stash, because I don’t need to Like Charlie, in many ways, Monero is my baby I’ve paid for stuff out of pocket for years I’ve worked on it constantly, dealing
with trolls and all of that And without any love from anyone,
except for the very tiny community And appreciation of price is
nice but it’s not necessary I appreciate the fact that there
are people in the community that occasionally just say thanks And that’s enough for me I like your idea of selling 5-10%
every time it doubles And I’m also holding my scams and I always
have some Litecoin and some Monero So yeah I think that’s a good idea So moving on to the next subject There has been a lot of
talk about “Proof of work” How it’s been wasteful How Bitcoin’s proof of work, Bitcoin mining
is using as much energy as Denmark The 2 issues I have with these arguments
about proof of work being a waste The first is that, it’s always presented
without an alternative Or when they do present an
alternative, it’s proof of stake And proof of stake, even if you can
do all sorts of magical things there It’s not as robust as proof of work We don’t have an alternative
to proof of work There’s interesting stuff being researched,
like Bran Cohen’s Proof of Space and Time That’s still a ways off, in terms of really
being able to analyze it’s robustness You can make all sorts of theoretical claims
but in terms of actual provable robustness, nothing beats proof of work And so without an alternative,
what are we supposed to do? Just like pull the plug and go
“oh, we think it might wasteful” The 2nd issue that I have is: the comparison
is often made to Visa or Mastercard Or Paypal, and then they say like “oh, Visa
operates data centers and that’s all” And Bitcoin’s so much more wasteful But they forget about all these other
elements that are part of the Visa ecosystem The ability to swipe a credit card, the production of wasteful credit
cards that have expiry dates You throw the piece of plastic in the trash,
and it’s got a half life of 500 years The bank manager that has to drive
his car to and from work The production of the machines that you swipe on Or put your EMV card
or tap or whatever All the hardware, the specialist hardware That is required for the banks to operate Transaction switches, all of these stuff These are all crazy things that
are part of that process, but are largely ignored when it comes to “Proof of work is wasteful”
and those are two major concerns I have with the argument
the lack of an alternative and the fact that it’s only analyzing
one small part of the system Yeah, it’s easy to do a rough calculation On the back of a napkin and say “Bitcoin
burns this much power, it’s wasteful” It’s much harder to calculate
all those things you said All the fragmented costs that are
kind of hidden and hard to find too But I think proof of work is reliable and it’s the only real way we have
to secure a digital currency in any Reliable manner and in a
fair manner at this time, But there’s actually a Satoshi quote
that address this issue I’ll just read it to you guys. It was about the same thing It’s like Bitcoin talk in 2010 So he said “it’s the same situation
as gold and gold mining The marginal cost of gold mining tends
to stay near the price of gold, gold mining is a waste But that waste is far less than the utility of having gold available as
a medium of exchange I think the case will be
the same for Bitcoin The utility of the exchanges
made possible by Bitcoin Will far exceed the cost of electricity use Therefore not having Bitcoin would be
the net waste, so basically there would be An opportunity cost to not having Bitcoin To not being able to make
these insensible transactions Or not having a reliable store of value and I think that is the real cost that we
would have if there was no Bitcoin It’s easy to say something wastes energy. You could just as easily say
internet wastes energy, right? People just use it to watch cat videos But there are far more use
cases than just that From my point of view, the
cost of the electricity is what is actually providing the security For the network, right? Security for the coin In order to attack the coin, the attacker
would have to match the network hash rate, the electricity used by
the network to attack it, So in some sense, this is what’s providing
the value of this decentralized network, and I guess you can even consider This is like the intrinsic value of Bitcoin
or Litecoin or cryptocurrency in general Or a proof-of-work coins, right? This is actually what’s providing value Yeah, and another thing Together with all those articles about how
Bitcoin was or Bitcoin mining is wasteful There is also a positive
narrative that it allows Electricity companies and miners
to invest in green energy I know for example that in New Zealand
there are a couple of hydro dams That were not being used and now
some miners are looking into using that As a source of a cheap
electricity for mining So it can also have a very positive effect
on the producing of electricity itself Yeah, and I know in China that actually Purchased an abandoned hydroelectric
plant and fixed it up, and they’re using that To cover their electricity because
they’re miners, They’re obviously profit-motivated Why should they be paying more for electricity
when they can reduce their costs? Yeah, so miners always want to maximize
profits and minimize their cost And it also happens to be that hydroelectric
power is the cheapest power available So most mining is powered by green energy And there’s also energy arbitrage so
a lot of miners are just using Available power that would have just
gone to waste or not been used so In China there’s a small town They had like a massive mining operation
there, but it used to be like a Steel mill so that consumes
a lot of electricity But all the steel mills were shut down
so there’s an abundance of power and No use for it, so they kind
of switched to mining. How is this weird thing, where
storing it is not so easy? You can store it in batteries, but that’s
like not particularly efficient And so there’s a limited amount
that can be stored So where there’s additional electricity
being produced that just gets wasted. It’s like well “we have this like extra
electricity units, just throw it away Yeah, okay, so on to the next topic: Kitties More specifically cryptokitties It was actually very interesting. It’s like already a couple of weeks ago
that it was so popular, but it came out It’s a typical crypto thing. It’s a meme so everyone just starts
going crazy for it and it blows up Yeah in a couple of days So basically the idea behind it is that you can breed different cats
with special characteristics and They can create unique cats and
those can have other characteristics, and they can get more unique So you can have very expensive cats
because there was a marketplace But the thing about it was that every time
you breed a cat or do something It’s another transaction on
Ethereum blockchain At one point, it was like two or three
dollars per thing that you did with your cat So this actually showed that blockchains
don’t scale very well and That it’s a huge waste of space to
have millions of cats transactions stored on the ledger, and yeah It doesn’t make much sense to
have that stored forever Every cat transaction stored
forever on the blockchain So maybe this is more something
for like side chains or something like that. What are
you guys thinking about the cats? People always wanna put all the transactions
on blockchain, but they don’t realize Someone has to pay for it, right? You’re storing this on a global decentralized
ledger for the rest of time Do you really need to store these
transactions on the main chain? The answer is no, you don’t need to store these
cryptokitty transactions on the main chain That’s secured–well, at least
for Bitcoin, that’s like That’s uncensorable, and will
be stored for the For all time, right? So yeah These things will probably better go on
a side chain or Lightning Network Some people would argue with you, Charlie. They’d say “no, it’s gotta be on the main
chain, along with the coffee and everything” I mean, there’s–my point of view is that There will be multiple chains, right? So Litecoin can help handle the transaction
volume and other chains can help -So you wanna take a few cats?
-Eventually… Yeah, I’ll take a few cats Alright, you’re a life saver Yeah, but I mean people don’t
realize like if there’s a There’s a trade off, right? You can’t —
there’s no such thing as a free lunch You can’t just store these things
for cheap forever. -Yeah, and plus we just talked
about the power
-Yeah I think the other thing that crypto
kitties has demonstrated Is that on-chain scaling is extremely
hard–if not impossible And the biggest problem is that all of the
decentralized digital currencies right now That we all struggle with that level
of traffic and transaction volume No one’s ready for it and so scaling
prematurely by just ramping up block sizes Unfortunately it might buy you some
time, but it doesn’t mean that you’re going to be ready
for that level of volume On the other hand, you have the
whole Dag and Spectre and all those sort of technologies,
which are really interesting But unfortunately in their current
form and stuff like IOTA You’ve got lots of centralization,
so if we put those aside, and we focus on the stuff that’s
properly decentralized The handful of cryptocurrencies
that are, like honestly No one is ready for that level of use and
definitely not for mainstream adoption use It actually also brought up another
interesting subject, because The owner of the smart contract
can just pause it And then you lose all your–or like you
can’t do anything with your cat anymore People thought “Oh, I got–I bought
my cat, I have my cat now But if the owner of the smart
contract just pauses the game No one can do anything with it anymore, so the people are thinking it’s decentralized,
but at the same time It’s completely centralized. It is, the owner can also
change like the attributes, right? If you have a rare attribute, They can just change it to
something really stupid And then your cat won’t be
worth anything anymore And they probably wouldn’t but they–
I mean, just that– it’s centralized. I mean, it’s a gimmick, right?
Is it still popular today? I haven’t really paid much attention to it By the time this show is coming
out, probably not anymore No, I think like the hype is over. It was like
two or three days of really insane hype And it was everywhere on every
newspaper and every website That’s gone, so yeah. -But it’s a good
thing to have that because it shows Very clearly, at least I think, it shows
very clearly blockchains don’t scale and people need to start understanding
that so they stop crying for Bigger blocks and Solutions that go nowhere because
that is just one gap and If Ethereum delivers on the promise of
like hundreds of thousands of depths, A thousand times of the scaling problems
that they’re having with the cryptokitties I always go back to your question like, do
you really need decentralized applications? I mean for certain applications, maybe but
for cryptokitties if Google is running the App platform that you can write to and
you write the cryptokitty app for it It’s centralized, it runs fine and Transaction TPS is really high, who cares?
Who really needs it to be decentralized? For that application, so I mean
I think Ethereum is great It’s doing something that very interesting But in the end it would start to
cost a lot of money for transactions because it’s a decentralized World computer, right so And not many applications
will really need that but what if I’m really concerned about
the government stealing my cryptokitties? Then you pay for it Okay, yeah well I think The most important thing to take away
from this is that blockchains don’t scale. On to the next point. The markets are going crazy, Litecoin making
new highs, Monero making new highs But Bitcoin obviously, we have never
seen such an insane demand not just Bitstamp, for example, they said that there’s
like 100,000 new signups per day Bittrex recently said that they have
500,000 concurrent users Which is crazy if you think about
like half a million users at the same time online
on a crypto exchange We also seen a lot more Mainstream media coverage Like CNBC, but my main
issue with it is that these Mainstream media are always Picking experts which aren’t really experts
or even quite the opposite of experts Is there a way to educate the mainstream
media or the people more like this? I think they look for these guys
just for the shock value Because they’re gonna say crazy stuff
and crazy stuff will get them ratings so for a lot of these publications Or shows they don’t really
care about the truth I mean it doesn’t take a lot of effort to
do a little bit of due diligence and Just look in and fact check these guys,
but they don’t even do that. They just kind of nod along and say, yeah,
this is great, thanks for coming on For some reason I don’t know what it is, but mainstream media tends to
gravitate towards like fund managers I remember a while ago like
a year and a half ago. There was an article on Monero They literally spoke to nobody in
the Monero community And they went and interviewed like
Peter from Waffle Capital and John from this hedge fund and they
spoke to them about Monero And I’m like, these people are not
qualified to give an opinion on Monero at least– not just by themselves It should be presented as maybe some
sort of balancing factor along with The Monero community or people who
have actually built stuff on Monero People who have written code that is
in use today, like let’s balance it out Let’s talk to both people
and then present that but for some reason they
gravitate towards this And I keep seeing it over and
over and over again The people who write books and
the people who run hedge funds and The VC’s and that it’s so weird
-Yeah, and talking about books There are people writing books about Bitcoin
and blockchain that I’ve never even heard about I was at the Riga conference and I
got a book from a Belgian guy And there aren’t a lot of
Belgians in Bitcoin yet, I never heard of the guy, and he wrote
like an entire book about it He gave it to me. It was nice of him,
but if I never heard about you I am in Bitcoin already quite a while, I
immediately question the quality of your work I mean I didn’t read it yet, it might be good But if you start inviting
people like that as Experts, people who have
been in industry for a while that haven’t heard about
those people then yeah So there’s an interesting theory that
I don’t know if you guys remember MertiaPepesco Mertia used to be the dark overlord of
an IRC channel called Bitcoin Assets. And one of the things that he had was that The entire channel was locked down, and
you couldn’t speak unless you had voice and in order to get voice
you needed to be within The trust network of somebody else
that was within the trust network and the reason for this is
he forced people to Sit there and lurk and only after
you had lurked for awhile And you got to know, like some stuff about
Bitcoin after like six months of lurking Then you could maybe like start
chatting to people privately or people would recognize
you from other rooms And then you might get voice, you
can ask for voice sometimes And they would temporarily
voice you for 30 minutes so that you could express your
opinion on something But if you’re an idiot then you’d get
devoiced, and you’d never get it again And I sort of think like it would be
great if this translated to real life And people that came into
the digital currency Cryptocurrency whatever space,
were forced to lurk for six months without expressing their opinion And then slowly were allowed to be more
and more vocal instead of this like “Hey, I’m a new person, and I read a Wikipedia
article and I’m writing a book” You also see people on LinkedIn for example
now being like Bitcoin evangelists and Stuff like that or blockchain experts, people
who’ve been in Bitcoin for three months They’re suddenly like blockchain
experts and yeah It really makes no sense
-You still have People saying that they’re core developers even though they haven’t worked
on a project for years And they barely contributed in any code too So an interesting question Let’s change things up a bit Ricardo came with this yesterday So, someone in the South
African Channel asked I think you guys should give out a
statement for everyone who has family has to talk or interact with family
during the holidays and Who like claim that Bitcoin is a
Ponzi, it’s money from nothing. It’s a currency, it’s without value It’s like internet money using up
all the electricity in the world, So how would you suggest that our
viewers reply to statements like that? I don’t hear about people calling Bitcoin
Ponzi that much anymore, I think The mainstream media is talking
about Bitcoin all the time And I think people are just realizing
the potential of Bitcoin not thinking too much about
it being a Ponzi anymore Ponzi was more like at 2016 thing, that
people were calling it, now it’s just a fraud I definitely have seen people that The problem is they can’t wrap their head
around it, and I guess it’s more like Your uncle who used to be an accountant It’s that sort of person, and they can’t
wrap their head around how Bitcoin works And so they go to is it must be tulipmania,
it’s the dot-com bubble It’s the housing market crash
of the eighties or whatever They’ve got all these analogies
of what Bitcoin is but they can’t understand why it has value Yes, they can’t understand why it
has value, that’s exactly it. How would you reply to someone like that? I just don’t talk to them I’d like to talk a little–I mean, I’d
like to talk to them about gold Because gold has very little Actual utility, I mean it does have
utility, it’s used in Some electrical components and so on But let’s be honest, gold has
very little real utility and a lot of its value is like
this intrinsic value We give it, because it’s somewhat
rare and it’s somewhat pretty and can be used in jewelry or whatever But that’s all subjective like all of All money is a human construct. It’s
just something we make up just like Nation, states and things like that,
so if we can mix that up and we can say that this magic
internet money is valuable It’s just as easy That’s what we’re doing today We’re fooling everyone Daddy needs a new Lambo. Yeah, we’re going back to the question I think it’s better to talk about
what makes things valuable And just approach that angle because
if you go through the mental exercise of what makes gold valuable
then it’s pretty clear Digital currency does too Well what makes like cryptocurrency
valuable is to me it’s the Well one of a major aspect is the
fact that it can’t be censored so it’s money that you yourself own And no one can tell you what you can
or cannot do with your money And that’s something that
didn’t previously exist and the second is that you can send it to It’s global, right? You can send it to
someone on the other side of the world Easily whereas with something like gold you can’t
just send an ounce of gold to someone in China You have to mail it and then
also like storage is Costly for gold so if you compare it to
gold it’s like a better version of gold I think there’s like permits needed to
actually ship gold around When you’re dealing with massive
quantities of money and value, it takes like hundreds of millions
of dollars to move gold I think Germany tried to move their gold
from the US and it was like three months By boat with armed guards and details, and
it was a couple hundred millions of dollars Just to move the gold.
-Actually talking about moving stuff I just thought about Normally when you move between countries, you’re allowed to have like ten thousand
dollars worth of cash on you What happens if you have your
treasure or something else on you Depends on the country and how they view it, that’s called the travel rule
and the travel rule I mean the only place I’ve ever actually
seen the travel rule enforced has been the US, where we were leaving Flying out of Los Angeles They checked our bags. They asked us
if we had more than $10,000 in cash And they were checking some
people’s bags to confirm The thing with the travel rule is it’s not that you’re not allowed to
carry more than $10,000 in cash, It’s just that you have to declare it And then they might ask you “why
have you got half a million dollars?” Or whatever, and you’d have to justify that
and that can be tricky for some people Unless you’ve got a specific reason
like you’re going to a trade show But it’s only for cash though so if
you have Bitcoin cash that’s a problem but if you have Bitcoin that’s not an issue So ZCash and Bitcoin cash are
the real issues there. Yeah, definitely Bitcoin, Litecoin,
Monero. You’re good Going back to your point about Ponzi, certain
people are calling Bitcoin a Ponzi Again, certain people from a
certain subreddit and Friends of that subreddit, so they’re
now pushing the narrative that because of the transaction fees Bitcoin is starting to be a Ponzi
because no one can Or not everyone can sell their coins anymore,
if they own less than a certain amount Because of the high transaction fees Look, at the end of the day if you’re There are traders who deal in really small
amounts, right? They like those like sub Sub one cent currencies and
all that sort of stuff so anything can have a transaction fee That’s too high for you to
move your tiny stash I guess with Bitcoin, yeah,
it’s kind of harsh That you can’t move your stash if it’s Under a certain value, but
what you could do is you could just send it with a
very low transaction fee And it’s going to take a few hours
longer to confirm, and I guess maybe Part of the problem Is that people are either not aware that
they can change transaction fees Or they’re using a client that
enforces a very high transaction fee Or they’re not even using a client at all They’re moving from exchange to
exchange and the exchange is like well You know we charge a $50
fee that is what it is I think most wallets don’t do a good job of
letting people set fees also, in addition to Estimation of fees, so there’s like
a lot of problems with this that need to be addressed from An engineering standpoint
and usability standpoint But I mean like Ricardo said, you
can always lowball the fees. It’s like the weather. You just check and
see is the Mempool being spamed if not then Lowball and see if they’ll go
through in an hour or two therefore people freaked out about
the use of the term spam I mean, that cryptokitty is spam, right, If we’re being honest. It’s like filling
up the Ethereum Mempool With transactions that are Probably not as important as some others At least essentially
-Like what? An ICO? No, I was thinking more likely
EtherDelta before they got hacked right But yeah, you know like I mean
anything can be spam For a long time, Satoshi Dice
was a spam, a major source of it That’s just a way of categorizing
it using a term that is maybe not the best term
if we’re being honest but It’s a reasonably good way of explaining That those transactions are probably
not as important to some others. Well, I mean, some people say
that, I mean the term spam is Kind of confusing because if
you’re paying enough fee then It’s not really spam right? So yes, somebody may potentially be Paying a lot of money to
bloat the blockchain with Transactions that are not real
transaction so to speak, but they’re paying the fees so
you can’t really call that spam Yeah, I mean potentially it’s like an attack So someone is willing to pay Whatever, ten thousand dollars a day to Bloat the Bitcoin Mempool to make
Bitcoin seem unusable and it’s not That expensive, if you
have like billion dollars so, But yeah, it’s potentially it’s an attack, but
it’s something that we have to deal with we have to find a way to Kind of maybe– I mean, that’s why the
fees are so high, it’s because people People are using Bitcoin, people
are willing to pay the fees Otherwise the fees wouldn’t be this high Yeah, exactly So the next question was Because I asked two days ago on Twitter
for people to post their questions And one was “how many coins do you
think will be around in 20 to 50 years?” And “how much you think the
market will be consolidated by them?” Or really have like one
particular type of coin, like one coin for anonymous transactions,
one coin for like Bitcoin One coin for smart contracts or whatever How do you guys see that? Are you shilling one coin? There’s only gonna be one coin It’s called One-coin. Yeah, I think We’ll see a lot fewer coins because a lot of the coins right
now are just marketing coins. They’re gimmicky and They serve no real purpose like
if you really just do it You don’t think that will still exist
20 years from now? I think a lot of coins will exist but
a lot will disappear. Sure, but for every one that disappears
there’s probably gonna be like 5 that show up I see it kind of a cycle. It’s like an educational cycle. It’s like all the fork coins, right? Like every fork coin of Bitcoin that
comes out is less impactful Because people realize “okay,
this is kind of garbage” And they’re not really gonna care as much But the first one or the first few, then They can move the market,
people are interested It’s a new hypy thing and they
want in right but in 20 years I think we’ll see a lot of the coins
will just die either from their own Security issues or just lack of miners To mine the coin. Yeah, there’s definitely
a faddish nature to this Remember when a few years ago Air drops were all the thing and
then it was like ah Spain coin, and everyone was trying to do like a Geographic coin and then they
would air drop it on the Wasn’t it a few yeas ago? We’re still in air drop, like the
prime time of air drops. Yeah, but now this is the new
generation of air drops because the geographic air drops went away And then there was the masternode hype
like, every coin must have masternodes And then ICO’s everyone must do an ICO It’s like oh, you’re a start-up. You must
do an ICO, forget about traditional VC, and it goes through the slack There’s weird sort of hype cycle And I think that we’ll probably go through
a ton more of those in the next 20 years But I do think that there’s probably Hopefully a handful of cryptocurrencies
that exist today that will still be around in 20 years’ time Because of the nature of their
development, because of the fact that they have people working
on them for altruistic reasons Not just for profit motivated reasons,
and they have a community That’s actually real and not just
there to get rich Next question Explain cryptocurrency to me like
I’m a six-year-old I mean, I guess we have to explain a little
bit more complicated to a six-year-old So I’ll take a stab. I’ll take a stab So it’s like you’re at school, and
you have a chocolate bar Someone takes it from you at lunchtime. If that chocolate bar was a digital currency,
they couldn’t take it from you What’s the point of a chocolate
bar if you can’t eat it? Well you can eat it, but they
couldn’t take it from you… You try, you try Imagine you have a chocolate bar,
but if someone takes it from you They will have to return it to you
because everyone else in the yard says that the chocolate bar
belongs to you so They can’t take it from you When has that ever happened, Charlie? And so they know who has chocolate bars And If you give your chocolate
bar to someone, then it’s fine because everyone can see that But if someone tries to steal it from you, then everyone will beat them up
if they don’t give it back That’s a good one, actually I’m
gonna use that from now on I saw a tweet recently that there
are children now who are nine years old And like Bitcoin has been
there their entire life And it’s really crazy when
you think about that and they will grow up with
Bitcoin and they will Like understand it better than anyone else. I have a family friend of ours Their kid, a while back I was on my laptop And the kid came up and
started pushing on the screen like it must be a touchscreen And couldn’t understand
why stuff wasn’t working when you grow up with technology
like capacitive touchscreens Then you take for granted the fact that
some screens are not touchscreens And I think that that’s gonna happen
you’re gonna have kids who like Why must they swipe a card? They want to scan a QR code to pay And what do you mean they can’t Send money to somebody who lives
in another country? That’s just weird Another question, how do you sleep at night? I don’t know in what context it was
but someone asked to all of us. How do you sleep at night?
It might have been a troll. Usually with lights off with a soft pillow Fluffy blanket Butt naked as all ponies sleep TMI, TMI. I don’t sleep Yeah, I don’t think Samson sleeps either So Ricardo, can you talk about Nimble Bimble Implementation in Monero? So it’s something that we’ve
been playing around with and by we I mean like people around me Who are interested in this
we’ll probably do Nimble Bimble stuff as like Like a merge mine sidechain
or something like that We’ve looked at different deployment
mechanisms and cool ways to do it And I think that the merge
mine side chain model is probably the best we’re
going to get for now Because it provides a nice coupling,
and we don’t need to go and like And adopt a new security model, and
we’re hooking into Monero’s security model And the nice thing is if we build
it out in such a way that We build a Lightning router,
that’s compatible with The Nimble Bimble sidechain
and compatible with Monero, Then we get atomic swaps over Lightning So that’s kind of cool because then
we don’t need to worry about How do we do atomic swaps between
main chain and side chain Yeah, and talking about atomic swaps Charlie, how long do you think that
it will take before that will Become like a common thing
with Litecoin and with Bitcoin? Well, so I guess we’re still waiting for
people to start using the Lightning Network For Lightning Network to be More mainstream and for people to adopt it So I think 2018, we’ll see Lightning
Network really being used I’m hoping like big exchanges like Coinbase
will really embrace it and actually Be like one of the largest
Lightning Network nodes Yeah, so once that happens, then We’ll have Lightning Network from multiple
chains, and then we’ll see atomic swaps You know what’s really cool
about Lightning is that You can have the lightweight
clients like web wallets For Lightning that don’t need to know
about the consensus model of the underlying system at all So it means that it’s significantly easier
to build a lightweight client Yeah, I mean that’s what this beauty of the
like second layer technology, right? You can abstract away the complexity
of the base layer. And the last important question is when
is the real cartoon coming out? So many people, everyone was so
excited about the intro, nice job, Samson But now everyone’s asking
for like the cartoon or like a couple of minutes episode
or like a full-length movie Well I think we can do some shorts Maybe like a couple of minutes long,
tell some short stories, the movie You know, I don’t know, sometime in 2019, We got to raise some money, that’s
gonna be expensive, next year I mean should we do an ICO, right? -An initial cartoon
-Yeah Totally, but I’m thinking about what
we could do for a movie I think Charlie has some ideas too,
so it’s definitely a possibility People thought it was interesting to
like educate their kids about crypto. Children like this song and everything
so it might actually be also Educational for children We’ll pay and you can sing
the song for us, right? Something about the pony and
the lion and something yeah So I guess that’s it for this month, so thank you guys for joining
and see you guys next time. Bye Bye, bye

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