This week in Bitcoin- 1-24-2020- Centralized time- Coinbase, Bcash, Fed Coins, Venezuela, Insurance

This week in Bitcoin- 1-24-2020- Centralized time- Coinbase, Bcash, Fed Coins, Venezuela, Insurance


Hello everyone this is adam meister the
bitcoinmeister the disrupt meister welcome to this week in bitcoin today is
January the 24th 2020 strong hand golden-age 2020s
bitcoin is next bitcoin in motion value your wealth and bitcoin I’m offended by
selling these dudes got conviction don’t FOMO on all coins no one phone those on
all coins it’s on this panel we got David Bennett here we got Gigi here and
we got Mauricio of Lennon here and whoa this has been quite a week at Bitcoin
all sorts of centralized players all over the place people are not
controlling their private key it’s wacky but it’s real and we’re gonna have to
address all the nonsense that’s going on remember new show here every Friday all
these guys are linked up up link to below actually new show here every day
this weekend big point is every Friday follow me on a tech talk to EC HP alt on
Twitter all these news Twitter’s are below let’s start off with Mauricio in
in lovely Toronto I believe that’s where you are right now
coin base it’s it’s come about the news that coin base has a milk is gonna soon
have a million Bitcoin so many people use coinbase that and it’s not all these
exchanges have lots of Bitcoin that that was big news this week or at least to me
it’s it’s big news what what is your take on that situation no I think I mean
obviously it’s it’s important that we pay attention to this I think as
bitcoiners and as sort of participants in the community and the industry we
need to be cognizant of the fact that although we want to push this narrative
of protecting your wealth having control of your own keys there are a lot of
users and people around the world that want to get
just a big coin don’t have the time to go through the whole learning curve and
they end up opting to using these centralized services and in addition to
that these centralized services even more so now are starting to provide
added benefits like interest accounts and loans things you can do with the big
point so they give you they give you extra I’m going to big dangle extra
carrots and not not in the sense that these are all bad services but in the
way we see it is it’s it’s somewhat of an inevitability that some people will
end up using custodial services so rather than trying to get rid of them as
a whole I think it’s important that we drive this idea of proof of research
which is the fact and the ability that is inherent to the Bitcoin protocol
where these custodians can show you on chain that they have your Bitcoin and I
Steve is as it’s not necessarily a trivial advancement in the practices of
custody today is there’s a lot of work that’s to be done in the back end but it
this needs to be facilitated we need to make more of an effort to basically push
that this should be the standard all right well we’ll talk more about your
article you wrote a great article about a proof of reserves what do you think
that the news that also came out this week that the Winklevoss brothers over a
Gemini there’s some insurance now they’ve come up with Nakamoto
insurance to to protect it I mean it again it encourages people to give them
to let them have their Bitcoin way is that a positive development listen I
think it’s a positive development for the for the adoption of Bitcoin in
general why because it keeps giving Bitcoin a perception of safety around
good important players that are regulated in the markets they operate in
and the fact that they are keep pushing the boundaries on the maximum coverage
and then the items that are covered so one of the interesting things that
Gemini is now advertising is not only coverage of their hot coat over the cold
wallet they’re now insured under hot wallet and they claim that they have
passed through the FI DC insurers and their dollar deposits so that starts
becoming that that starts giving a lot of a user that may be interested in
Bitcoin but doesn’t have the time to go through the whole curve it gives a peace
of mind and it gives them more of a readiness to act on a potential line alright let’s let’s move over to Gigi
and by the way everyone that like one and pound that like what
if anyone was on Twitter today when i retweeted Gigi’s German podcast
yes he’s got a podcast in German he speaks it knows about Germany so
actually right before the show we were talking about Germany and Halifax now
can hold people’s Bitcoin for them it hasn’t exactly started there yet but
what what Gigi we all know you’re a hardcore control your own private key
guy what do you think about these developments yeah well in general all
those centralizing developments I wouldn’t be too worried about it yet I
mean I think it will get varying if Cohen basis
they’re getting close to 21 million bitcoins and no I think it will just
continue to happen and people will get burned and yeah that’s just the part of
the Bitcoin experience it seems that you opt for for a centralized service that
holds your keys and as we all know know the key is not really a Bitcoin and then
you get burned because the centralized service fails and you learn and you well
you move forward and maybe you come back in with the next hype cycle I don’t know
I think I think it will just continue to happen I think most users they are still
in the convenience mode so they value convenience over anything else and I
think it will just be a learning learning experience for most users if coinbase does end up with a million
that there’s only 18 million Bitcoin that have ever been created so one in
every 18 ad coinbase that that just sounds a little good for me it sounds
like point basis it’s gonna be it’s incredibly powerful in the space I’ll
tell you that for all the people that predicted the coin base was gonna fail
my that’s that doesn’t sound like failure to me David Bennett what’s your
take on centralization and in general obviously I don’t like it however I
think gotta agree with my colleagues here this is gonna happen people are
gonna look for convenience that’s just the nature of how he many he
operate it took a lot for me mentally to get to a space where I was like I got to
learn all this stuff to be able to to feel even remotely safe and in control
of my destiny and that’s heart that’s a hard sell it was easy for me because I
don’t like people being in control of what it is that I do and have all this
say but again if this is gonna happen the fact that they’re gonna end up with
a million coin over it at a coin base or yeah corn bases it actually kinda is
throw me for a loop I’m a little surprised but I’m not it’s not outside
the realm of possibility and you’re right it makes them pretty powerful I
don’t like it I mean the whole delete coin based thing I was you know I I’m
done with them I haven’t done anything with coin base in over a year now and I
refused to work with them at all but they’re you know we’re here and this
this thing with geminis is sort of the same thing where custody is going to
happen in Europe have to make the choice as to whether or not you’re going to be
one of the animals in the pen or one of the animals outside of the pen I don’t
mean to make it sound so harsh but these guys are some of them are gonna learn
the hard way some of them are gonna end up being safe and it depends on the
people that are backing the companies that decide to go custodial and remain
custodial I think it’s good to make it sound that harsh actually because it’s
better like sounding harsh now and feeling the wrath of the harshness when
your birds are Bitcoin there’s you know being called an animal inside a pen is
better than losing ten bitcoins least at least being outside the pen if somebody
comes after me with an axe I got the choice to run you know I can I can bail
with my hardware wallet across a border baby if I go across a border and I have
to depend on coinbase to say by the way you’re in Iran we’re not doing business
with you because you’re in a you know in a region that is under you know whatever
consequences that any other state puts on them that I would rather be in
control of I just would rather be in control of my own stuff yeah so let’s
let’s go back to Mauricio because you did write the article on proof of
reserves that I know Nick Carter is a huge fan of crucial reserves is there
anything else you wanted to say about it I mean right now I don’t think a lot of
the participants in the ecosystem would be willing to do this right now for
obvious reasons well I mean that’s kind of what I
brought up in the article is that this concept of proof of reserves a it’s an
aid to the protocol since inception like it’s it’s it’s fairly simple to show if
somebody has sent you atom coins on chain it’s very simple for you to show
hey here’s one chain I received them and in fact even if you tell me you didn’t
receive it like a gold chain and see that you did because I can see that the
true section was badly received so what what I guess the the what I’m trying to
highlight an article is in fact that even though it is a bit impossible in
but because the technology enables it for you atom to show and see on chain
where your funds are in any custodial service right that ability the protocol
enables that why haven’t we as an industry passed that through to the
users and why haven’t we as why haven’t we really and we’ve created these all
and confusing and complicated audit systems where you can check that your
fund you have to do all this work to check that your funds were included in
the audit and then you have to do additional work to see what everybody
else’s funds work why can’t we just ask custodial services show where the funds
are to the users on chain we do that with every one of our loans well the
other could because I could see by some custodial services that want to do it
was they’re practicing a fractional reserve lending another thing like ask
the question if they can’t answer and what are you doing there yeah that
there’s a good one people hey wait GG were you just did you just
might have something to say by the way I thought I saw something pop up on my
screen yeah exactly I wanted to comment on Mauritius article because I really
liked what he said about Bitcoin having very low switching costs because I think
that’s very important to point out because I think once we have something
that approximating another mount GOx like
some grand disaster with some centralized service or in exchange or
even with fractional lending or some other shenanigans and people are afraid
that their centralized service that they use will do the same with their Bitcoin
they will just run to the gates and they will take care of setting up their own
self custody and maybe setting up a multi-sig or whatever is convenient and
popular right then and there and I think it’s very important to point out that
Bitcoin intrinsically has very very low switching costs as Mauricio put it and
don’t underestimate that I mean we’ve seen that in the digital realm a couple
of times that services simply die in the span of like a week or a month just look
at digg.com for example I mean it got killed off by reddit in a couple of
weeks or months and the same with MySpace and other other services that
just went by the wayside and I think the same will be true for centralized
services in the Bitcoin world if they mess up and if they play games with
their users funds yeah well imagine I’m just imagining a
nightmare situation god forbid we’re at coinbase were code bases can have one
out of every 80 Bitcoin if they got hacked
that would be big and there would be a lot of people switching suddenly at that
point that people through hats before great sacrifice to live through hands
before anyone everyone to realize if sorry I’m sorry I didn’t hear you sorry
sorry for interrupting but I didn’t realize it would be interesting because
you know they’re they’re a couple of million bitcoins already lost supposedly
there’s some that are probably lost but it would be interesting to see what
would happen if like coin base goes bust and the million bitcoins are lost it
would make everyone’s Bitcoin much more valuable and it would be a great
sacrifice to the Bitcoin world so I’m not I’m not necessarily seeing it as a
great disaster the moon the first thing that would
happen though is there would be the mass-media would say bitcoin was hacked
and the price would drop but considerably if coinbase were to go down
i mean living through 2016 was seemingly the big Phenix hack it every time there
was a hack it would go down like 20% or more the price so this this would be a
nightmarish but let’s look let it not happen it would be quite a lesson but
everybody that that’s why you first will control your own private key and you
don’t get too freaked out by fiat prices jumping around because yeah there’s some
more rollercoaster conditions on the horizon who knows what will bring about
those rollercoaster conditions alright well the topic of centralization there
unless that David you have anything nice to say about peripheral reserves or
anything else on this topic yeah I was just gonna I was just gonna add that
okay all right are you there yeah proof of reserves
yeah is a good it’s good my my issue is cuz I’m trying to think adversarially is
proof of reserves work until they don’t in so far as let’s say I have a
custodial company and I’ll and I am really good with my audits and I’m
always sitting out the audit and everybody goes oh yeah he’s got my coins
has got my coins he’s got my coins and then BOOM exit scam and I did it before
the next audit I think if we were to look at this this might be where the
whole Gemini story comes back into play its part but my thing with the Gemini
story is I don’t know who the company is that is holding the money for Gemini
because if they’re self-insured and they allow audits then the insurance could go
away as well as all the Bitcoin can go away and there’s not any kind of proof
of reserve that’s going to stop that from happening from audit date number
one to audit date number two now if as and I hate this
it’s more centralization but if a quote-unquote trusted third-party
insurance company is ensuring Gemini then if for whatever reason there proof
of reserves goes kaput and the wincle via decide to take a poof then somebody
a third party’s on the hook for that insurance so I think they would work in
concert but again if you’re self insuring the proof of reserves I don’t
know it’s it’s what it’s one of those things where yes it’s a good idea to
have the proof of reserves it just I I can’t help but to think adversarially
because humans have this weird tendency to screw each other like we’ve seen
lately with the second lightening truck chain torch oh wait GG you said
something no I just I just all right we got we got a question here we got a
question from the audience this is an interesting one this one might be for
Mauricio we’ll be up and we’ll the upcoming snore signatures soft Fork
create any difficulties for proof of reserves well we don’t know when that’s
gonna happen I mean you say upcoming that’s who knows when that’s gonna
happen but yeah what would what would that do as the as Bitcoin becomes a more
private or more fungible what’s that I deal with what’s the deal with prefers
reserves when that happens I mean listen I think no proof of reserves is a
concept I think right now what what the industry is kind of trying to wrestle
with is what does this look like what is the standard and what is the right way
to show up of reserves because you know to the point that was just made the
Audion is periodic it’s not real time so there is a time of this a period of time
when something can happen the way we address that or that ability to show our
users with some prefer services we assign a vault to their further
collateral and they can basically ping that vault in any at any time with their
node or third party explored in the second Bitcoin moves
they’ll know now again it’s not perfect there are different ways that this can
be structured but to us as long as responsible users verify the vault they
will be the first ones to know when that thing moves and at least they’ll be able
to set up triggers and act and not have to wait to the next audit comes out all
right we we’ve we’ve we’ve talked about this subject and now it’s time to move
on to something even more centralized well some would say it’s sad let’s talk
about these as centralized coins I guess we’ll start out with David I think you
were tweeting a lot about this this week right or you wanted to talk about this
the be cash 12.5 percent tax they tell us what’s going on with be cash it’s a
it’s a learning experience well yeah it looks like what happened was a blog
posts dropped I cannot pronounce the gentleman’s name he’s from BTC top one
of the one of the bit larger mining pools she hangs your I think is the name
on January 22nd he drops this outline for the infrastructure funding plan for
Bitcoin cash essentially I won’t get into anything other than two points one
is that it suggests a 12.5 percent tax on the miners and that tax will then go
to a corporation that will then be distributed to the developers and that’s
about all we know for me well I don’t have to worry about
this happening in actual Bitcoin so I don’t it doesn’t it doesn’t bug me
because it it doesn’t affect me any bch bag holders though this is going to
cause a problem and normally speaking like in all my podcasts I don’t ever
make predictions certainly I never make them on price because I’m a crappy TA
guy I am gonna make a prediction on this one though this thing is supposed to
drop or this this thing is supposed to happen on May the 15th as far as they’re
talking about close to the happening when that happens I suspect that on that
day there will be only one major fork of the be cast chain after that time I
believe there will be several more Forks of B ch because what’s going on here is
that now minors are being forced to get fork over some of their their profit or
profits if that’s what you want to call it here or revenue definitely from the
BC Mining B CH to pay some people to work on B ch this is what here’s here’s
the here’s the top highlight of that blog post it says quote to ensure
participation and include subsidization from a whole pool of sha-256 mining
miners will orphan B CH blocks that do not follow the plan this is needed to
avoid a tragedy of the Commons which is Roger vers favorite argument ever is the
tragedy of the Commons more to the point though to ensure participation they
spelled compliance wrong this isn’t participation this is force this is
violence by force just like tax it has the same impact
it’s going to do the same thing except nobody’s bound by law and will be thrown
in jail if they decide to give somebody or several people the finger and like
the animal free animal in the field go off on their merry way and I think that
that’s what’s going to happen because none of these people are gonna like this
second and this would be the last thing that I talk about is this part here
where he does he does math what is it oh he don’t math here by saying and that
Roger verb made a tweet either last night or sometime early this morning
that that Bitcoin BTC is going to pay for 95% of protocol development on BCH
this is where he’s getting this from quote because of the hash ratio between
BTC and BCS and the difficulty adjustments that maintain an equilibrium
it is the entire set of sha-256 mining including BTC mining that bears the cost
under this plan now you go I’m not going to read the rest of it because it goes
through a lot of percentage math but my take on it is that it’s gibberish
so that when somebody retort gives them a retort and says no we you know dude no
this is this is BS and it’s never gonna happen they will say the following
because you can’t do math this conversation is over
the math is confusing and it doesn’t make any sense whatsoever it’s gibberish
and all I see is a complete and total fragmentation of be cash that’s it dude
like button I read through that math a few times I’m gonna end up paying for
this and I just didn’t say like let them say whatever they want to but I I think
you know all of a sudden with that gibberish just like say a bunch of
gibberish it sounds kind of complicated you don’t understand the math this is
going to work believe us we’re central we’re gonna learn this is again we can
learn from these altcoins let them experiment in this new form of
governance let’s let’s see how it works as for your prediction that they’re
gonna be many B caches afterwards well why don’t they what they just mined
Bitcoin instead I mean instead of making their own newbie cash I thought about
that too that there might be might end up with some more B caches after this
but then I thought why did why take it to that level why not just go back to
the original if you’re a minor and just in mind Bitcoin instead of trying to
mind her own be cash who knows what will happen
GZ you’re oh sorry did you sum up some stuff say David
no go ahead GG I just that point out again that what you read
the quote I just found it hilarious that the reason why all this is done is for
the greater good you know just just believe us we need to do this because we
need to avoid this tragedy of the comments and everyone who reads this and
thinks that this is correct – just think about other projects that don’t have
this problem like why does they cannot have a tragedy
of the comment in that same way and yeah I just I I think I mean we we talked
about that a lot already now I think you know all the time spend on shit coins
like be cash is more or less waste of time it’s it’s just a little bit
hilarious that’s it it’s you know cheap cheap and the cheap entertainment for
bitcoins that’s the way I see it yeah well it’s definitely a soap opera
if you want a soap opera over there but he’s a learning again it’s a learning
experience they’re experimenting we will see how this works and we’ll see the
matter they’re magical math what comes out out from that Mauricio do you have
thoughts on this I’m you know you know David and you just cover to the really
well but the only thing I would say is you know as far as like experimenting
and letting them go on the from the basis of experimentation it’s just the
same way as seeing the government of Venezuela experiment with communism it’s
like it’s an experiment that we’ve seen over and over and over in there we just
know how it ends and frankly I personally can’t see the day until all
this noise is finally drowned out because you’d be surprised at how many
people find an interest or biklen and then get derail with all this noise that
they find and all these different types of bitcoins and frankly I can’t see the
day where we just have one Bitcoin the real Bitcoin and everyone else is just
kind of putting the resources to better uses rather than confusing people that
rightfully are looking for a sovereign money but you know I agree that it’s a
bunch of noise but I don’t see that noise going away and
soon I think we’re always going to have noisemakers distracting people and many
many people will keep on falling for the noise I mean the situation you know this
is a noisy situation it’s nothing compared to the craziness that’s going
over at bsv and there’s plenty of people that buy that hook line and sinker I
mean so it’s I think it’s something we’re gonna have to get used to in the
space and those of us who have the focus are gonna are going to remain focused
and unfortunately uh a lot of people are gonna get distracted by this noise I it
would be great if there were some sort of noise now so I might as well stick
with you in Venezuela the coin Telegraph article and it is about the petrol and
that the petrol our local bitcoins is selling for half of the official price
now that might not sound great but it does mean that people are putting value
behind the petrol people are giving up Bitcoin for the petrol it might not be
as much as the Venezuelan government sets it to be but it’s it’s it’s being
training so I gotta say from my point of view and I don’t like the Venezuelan
government but it seems like the petrol has definitely bought them some time it
has more value than the freakin Bulevar does bolivars it has no value whatsoever
so what’s your take on the situation over there I’m Mauricio
yeah I’m just trying to organize my thoughts cuz there’s a lot to unpack and
I want to be as clear as I can and not and try to get the message across so the
Venezuelan petrol is being printed out of thin air backed by nothing not on a
blockchain it is not a crypto acid it is just another inorganic fiat currency
represented by a digital token that the government’s could just print out of
thin air and they’re giving it to people because when they principally honest
people know what to do now when you give something new inflation has not
skyrocketed because people don’t know what to do and
it’s illegal to do so so I don’t know if you know this but right now there are
people so the only way you can get rid of a petrol is by selling it in a second
market exchange or directly to the government the government is holding an
abaya to you from you in Bali Attucks and the reason they can maintain the
dollar value of the petrol in believe it is is because it can print as many
orders as they can to defend that tank right when you take the petrol to their
real work and you ask a real person to do it the only reason people are paying
half of the money for the petrol is because there’s this giant government
forced plan to make retailers take the petrol at the government value so what
are these people doing these people were buying petrol at 50 cents on the dollar
and are taking the petrol and buying a full dollar worth of chicken at the
retail it’s merely speculation and the government is desperately trying for
somebody to take hard currency for the petrol hard courtesy of being dollars of
Bitcoin the last trick it tried to pull was trying to force Airlines to pay
further refueling in the Venezuelan airports and petros so since nobody
locally is going to give up hard money for petros and the ones who do are doing
in a crazy 50 percent so they can go speculate but no sane human with hard
money is going to trade it for that thing but but again there are people
that are doing it so that if I was in Venezuela now I would dare if I got some
of those free petrodes I would turn that into Bitcoin if some sucker wants to
turn that in the Bitcoin then this is a way out for some people I mean it’s
always the 100 percent it’s always about being the greatest sucker right now the
greatest sucker is the retailer that haven’t this having to take full Ally on
it because it’s getting other subsidies from the government so they are thinking
that every Petro they get they’re gonna be able to get full value from the
government and that ball is gonna drop like it’s gonna drop like a hammer one
day and it essentially it’s the same thing this happens when it’s wet enough
for years and years and years gonna happen again they’re gonna wake up one
day they’re gonna realize they’ve been lied to for like six months
everybody’s gonna try to think they’re running out inflation shoots another
thousand percent okay when you mentioned the forcing Airlines
do you think they are going to force some outside outsiders outside countries
to actually buy the petrol I I think it’s possible I mean it’s possible
relief for the people that Venezuela is already feeding so for example airlines
get a huge chunk of business because Venezuelan airlines are depleted and the
only way when the stone has leave the country now is through foreign airlines
and now because it can charge for the tickets and dollars it is good business
for airlines to fly but as well as out of the country so yes they’ll be paying
you know they’ll start paying X amount for the petrol because they’re getting
way more than what this but it’s costing them same with like the few
transnationals perhaps Chinese and Russian companies that are in there
exploiting oil fields etc they might buy it because it kind of goes with the
whole narrative but I think what never what the only the only people that are
going to buy this are accomplices and people that are benefiting from the
destruction of Venezuela in one way or another and that to me is just a whole
set of bad actors yes so if China is silly enough to to do this to buy some
of it then and people are still getting it for free and those people could turn
into Bitcoin then it’s a blessing that they could turn it’s something in the
Bitcoin if they do it that way is that it will help preserve their wealth it’s
and this could in the long run in the long run it could hurt Venezuela the
government it could bring down the government more and more people thought
long term and said hey wait a second this is going to turn into nonsense let
me turn it into Bitcoin now yeah I don’t know if enough people with people
you said buy chicken with it I think they’ll probably be more people buying
chicken with it then thinking long term but still I I see it as I don’t like the
Venezuelan government I agree that everyone that I’ve talked to says the
same thing a cryptocurrency it is not a cryptocurrency at all it’s centrally
controlled they can turn it off etc etc but if you could turn it into Bitcoin
then you control then you’re in great shape man if you got the Bitcoin so it’s
very interesting to see how it develops and if any other regimes out there try
to copy them it you bet you bet it’s coming because
it’s it’s it’s people don’t understand generally speaking where inflation comes
from and the few that do know how to act in front run the inflation is like can
move the dollars out before the big moves happen what’s gonna happen with
the petrol is that because it’s a brand new way to inject inflation the market
still doesn’t really understand how to do it so people are going to use this
confusion and other countries are going to try to finance them their socialist
bankrolls with these inorganic tokens but sooner than later we’re gonna
realize that it’s just like printing liras or believe it is and they’re gonna
stop using it all right so we obviously they their central bank is making up
this towing nonsense coin but there are other central banks big ones that are
clearly going to have real digital currencies although they are going to be
centralized also but they won’t be nonsense like what’s going on in
Venezuela there’s been a lot of talk and I’d link to below
this week supposedly the different central banks are talking to one another
about how they’re going to do this in Japan says they want to do it and we
could hear it for a while it’s just a matter of time before a major country
has its own dead coin okay it’s just it’s just it’s a matter of time and
it’ll be run differently than the Venezuelan I would think at least gg
your thoughts on centralize the Fed coins and maybe on the bed as well a
situation – yeah yeah I I think it’s an interesting development and I also want
to point out that yeah the the people in Venezuela they actually I it was pointed
out in the article that they want to use something that they can actually use
because I thought it was interesting that the app which actually allowed you
to to use the petrol coin was shut down quite quickly and now it’s you can’t use
it anymore and people actually want the Bali bar again pretty much
and yeah I think the government shit coronary it will continue and the poorer
countries I think will front run the shit coin movement but we see we see it
all over the world and we see also the digital dollar initiative and we see
also from the European Central Bank initiatives to launch their own
government base jet coins and well it’s just something we will have to live with
I guess and I think yeah Bitcoin will weather this storm as well and we will
see how things are looking in the next couple of years
you saw something very interesting you think the smaller countries will do it
first well well then as well I already did it what we’ll do fed coins before
the larger ones or did I misinterpret you yeah no I think because it’s just
easier to do and easier to coordinate if you are smaller and more totalitarian
country I think the European Union for example moves way way slower and also
the United States has just more responsibility to do things more or less
in their point of view correctly and if you just can disregard everything and
disregard the law and are a smaller country to begin with I think it’s just
easier to introduce something like that and easier to coordinate upset
classified in the chats at one dollar thank you dude for the support David
Bennett what’s your take on Venezuela and these centralized the Fed coins well
I can’t really say anything about Venezuela because I’ve never been there
I only get the news that everybody else gets so I’ll refrain from saying
anything other than people still think that Venezuela is backing the petrol by
oil and that’s really I mean baristas rise backed by nothing is the reality
what they say is this backed by oil and then what they’ll do is they’ll point to
look at our oil reserves now those oil reserves are there and they are large
the problem is the oil itself is really heavy it’s hard to get out of the ground
it’s not like Brent and Orsi crude or West Texas light sweet crude the reason
you like those oils is because they’re easier to extract this stuff is like
gravy okay and it’s way deep and they don’t have the drilling infrastructure
anymore to actually tap it so this entire thing has been a smoke and
mirrors show because they have one piece of evidence that is true
we have massive oil reserves they don’t talk about the quality of the oil then
we’ll talk about how expensive it is to get that oil and then they’ve turned
around and forced somebody one of the Venezuelan state control drilling and
exploration company I can’t remember the name of it to force them to sell forty
five million barrels of oil that had already been extracted as that’s already
above ground that was easy to do and I don’t know man
this whole thing of the petrol being sold people actually like this guy
saying I’m reading the the new story that we were referencing that he’s
selling his BTC to purchase petrol so that he can help exchange with other
people and I’m like you just lost your Bitcoin right that’s just and this is
all based on this smoke and mirrors about the reserves that are in the
ground that you’d have to hire somebody from the US to go do that and or
somebody else who really knows how to drill and really knows how to extract
this is not easy stuff to do it’s not you don’t punch a hole in the ground and
then it just starts gushing out so now as far as the other nation states I’ve
talked about this on Bitcoin and for a while
nation state crap Connery is is gonna pick up steam the front-running of what
they see is as the the ability to do an end-around on Bitcoin is going to be
their fatal error because it’s going to put them into really bad situations and
their people are going to get a bit into the bad situations and the only thing is
going to front run is altcoins icos the new ayios that’s the only thing that
it’s going to do while bitcoin is way out ahead I think from that standpoint
and only that standpoint it’s kind of good news because the only people that
are going to be touched by this are going to be everybody that’s in our
that’s already in our wake but I feel bad for the people of these countries
that are going to have to deal with the with the fallout of the folly of their
respective governments who don’t understand what this stuff is they don’t
get it yet and I don’t know if they have a hope in hell of actually becoming
competent well this is the thing people people have a choice to make to see if
they’ve got a to do some education here okay they can become hooked on they’re
very easy to use fed coin no look I can buy anything with it look how quick
transactions or they could be like hey I’ve gotten this for free and I can turn
this into Bitcoin and I can get out of this system
I think from there gonna be some people it’s gonna be a minority a small
minority probably 20% or so or less that are going to realize like wait a second
I’m getting this fed coin I can now enter the Bitcoin realm really easy I
think some people will use it as an opportunity but some will get stuck in a
matrix that they will not be happy about and suddenly get stuck in a matrix that
they will be happy about they’ll just you know just everyday life but whatever
get getting taxed through their government you know they don’t care if
they’re automatically taxed their centralized digital coin but it’s more
of these countries are going to give free samples out of their digital coin
and if you’re getting that for free do turn it into Vic I mean if someone wants
to give you a big point for it my lord what a not what an opportunity what an
opportunity so that that’s I always try to take I have a positive spin on this
but over the long run these digital coins no centralized digital coins of
countries that they won’t compare it a big point at all
because they’ll be totally kyc coins they’ll be able to turn you off I’ll be
able to monitor everything you do they’ll be able to automatically tax you
it’s ridiculous it’s it’s 1984 type stuff but it’s convenient for some
people whatever all right it has I think that’s enough of the
centralized coins we talked about Venezuela beat castes central bank coins
let’s move on to something more positive but some people would say this is
centralized lightning development kit all right so the dudes over at square
Jack Dorsey are have created a group and they’re going to try to make basically
Lightning Network more usable they have some pretty big goals and to bring it in
a way to the general public that will be more convenient for them and one of the
suggestions that lightning development kit wants to do is make wallets that
already exist have lightning functionality instead of having a
separate lightning wallet I thought that was pretty cool but Gigi what’s your
thoughts or do you have any thoughts on the Lightning development kick news yeah
I just wanted to point out that it’s already less centralized and all the
other stuff we talked about before because async block stream lightning
labs and multiple open source developers are are gonna work on this stuff so I
would say it’s in good hand and it’s a good initiative and it’s definitely and
something like that is definitely needed and as they pointed out I think we can
all agree there still needs to be some improvements done to UX security privacy
and scaling all around and I think every effort in that direction this is a good
thing and as they pointed out in their blog blog post as you said Adam they
want to they want to add the ability with this lightning development kit to
integrate lightning capabilities to existing Bitcoin wallets and this will
be very interesting to see because it it should make
the development of of just additional lightning while it’s an additional
lightning capability way way easier and another thing that I thought was really
interesting is that they want to support multi device and multi app access to to
the same single wallet pretty much out of the box with this development kit and
this will be very interesting to see as well how developers in the ecosystem
used it and play around with it yes very good points they’re bringing up that
second one that I hadn’t really went into on my previous show Maurice your
thoughts on this project yeah man I mean listen I’m a big fan of jacket and and
what he’s been doing like his his initiative for the open source kind of
framework for social media now he’s going out and released this you know
lightning development to a kid that’s gonna be do wonders for the community
you know reading the blog post you kind of read they really kind of analyze the
ecosystem and they saw where the gaps for funding were and what could have the
biggest effect and move the community forward
we work very closely with people in latam their transactions are very very
small relative to us transactions to give you an idea like the average
deposit from Venezuela into our savings account is 120 dollars so people really
need solutions to spend Bitcoin in smaller amounts and have more privacy
and less fees so I do think he kind of hits the nail on the head I also think
it’s very interesting how he walks this line of helping open stores yet you know
securing patents I don’t know if you saw the news but they secured a patent for
crypto TAFIa on-ramp so they’re clearly walking both lines and they’re seeing
okay I can’t really grow my business on big point without growing Bitcoin so
they’re trying but I love their model of just essentially pruning out to the
community and finding out to the private development of your own yourself as a
company excellent David your thoughts on this a generally
really bullish on anything anything with lightning crime frankly I don’t have a
problem I don’t have a problem with Jack I kind of agree with what Mauricio was
saying I I dig the fact that he’s doing what he’s
doing I’m actually from from Ajax centric standpoint I’m actually more
interested in what he was trying to say with the decentralized social media
thing cuz I’d like to get a picture painted of what that actually looks like
because he didn’t give us anything but somehow or another with all this
floating around with Jack the the patent that he took that may not or may or may
not be defensive if I hope its defensive the decentralized social media stuff and
this lightning developer’s kit plus other funding in a Bitcoin in his world
I could see that coalescing into something pretty powerful I could also
see a coalescing into something that kind of falls apart if it’s done wrong
but I don’t know man Jack kind of has a tendency to do things
right I mean he’s not living out of a box
under a bridge so whatever he’s doing you know keep on but there’s that
decentralized social media a decentralized payment platform one that
has like insanely low fees for now because that was a that whole low fees
thing was a narrative that was fed to us at the beginning of this entire
experiment it’s kind of screwed some things up because block space is gonna
be precious lightning transactions may end up being kind of precious and a
third third layer might actually have to come into play there I don’t know but I
like the direction that Jack’s going I really do
I wish that the statement that said that they had talked to wallet developers
would have read something like we’ve talked to wallet developers and a whole
bunch of lightning Network users I would have liked to see the L end users be in
that statement but you know it is what it is maybe they did maybe they didn’t
but that wasn’t what I read in in the particular you know piece we were
talking about I don’t know I I think it’s all good
I think it’s bullish personally so yeah I agree that it is good news and it’s
it’s a big undertaking definitely your comment about the decentralized social
media yeah I had to say thoughts like what exactly
are you talking about dude and it’s kind of vague and a lot of people were
getting very gung-ho about it but like I I’d like more substance to that but
that’s that’s a whole nother uh a whole other subject matter though but I am
glad you brought it up and yeah to have Jack Dorsey on the Bitcoin team as it
were it’s it’s positive it’s positive in the law the long run who knows if we’re
watching this in five years we’ve probably got a big smile on her face
because by then we’ll know what what he contributed I’m sure it’ll be awesome
maybe a big point will be totally our lighting network will be totally
intertwined with Twitter that would be that would be kind of cool there all
right all right we’re getting two closing statements here we’re at the end
well let me let me real real quick we were talking about the petrol being
backed by oil and I think that’s that is nonsense howhow is it even true verbal
tether comes out this week saying they’ve got tether gold it’s back my
gold do any of you do any of you guys have thoughts on that or is that just
the gimmick I thought it was a cool gimmick to get Peter Schiff people
excited I don’t know anyone tether gold is anyone ever honestly man I actually I
control I thought it was a troll I really did and now that it seems to be
confirmed that this is a real thing all I can really do is kind of laugh and
that’s all I have to say about it okay Mauricio anything about having up coins
back buy things that exist in reality no this is just more a general Lloyd on on
how to spot crap coin REE so at a government level so I kind of
give some details too because we ever we had a comment that the petrol was backed
by oil so the first version of the white paper so there’s different legal
documents that back the petrol there was a white paper and then there was like I
said there which is a publication of a law in Venezuela the actual law that
backs of petrol says that the petrol is backed by quote barrel of oil X amount
of gold X amount of damage or and this is where the keeper goes any other
commodity that the government of Venezuela deems fit at the time so not
only that but in there were two versions of the white paper in the first version
they actually signal out an oil field and listed the reserves on the second
version they don’t and they put in this line about any other commodity so you
can spot these things in same image if you go through the legal documents of
credit gold or Tyler there’s like all it takes is a guy that reads the fine print
to and they’ll tell you to your face that they’re lying to you but you just
have to go and read it good I like that good good point read the fine fine print
people all right Gigi do you have any thoughts on all this or any closing
anything you want to add any subject matters that weren’t brought up well my
only thoughts are that if you are if you’re so like if you’re like Peter
Schiff and you’re really in love with gold just get some gold don’t get a gold
shit coin because the Oracle problem is still unsolved and just get the real
thing and put it under your mattress or something and bring it out from time to
time to help you fall back to sleep and like be the shape does it but other than
that I don’t have any comments under your pillow and make a wish yes all
right David Bennett actually did you you had you want to bring up something that
Aaron Vaughn where don’t just published hang on yesterday I believe pay swap I
hadn’t read this yet what’s up with this pace laughing yeah really I want to read
the whole thing but the gist of it seems to be that it is a privacy solution or
not solely a solution not the solution a solution this is going to be a field of
solutions for this kind of stuff but privacy is a big problem in Bitcoin in
mostly according to whoever it is you’re
talking to but in either event if there is a problem there’s always somebody
that’s got some kind of answer and this gentleman who goes by the handle get
this Z MN s CP XJ I love the aliases in this space man he is introducing what he
calls pay swap and apparently the gist of it is this if I send you like you say
like you’ve got I don’t know something that I want and I pay you for it in
Bitcoin chances are good I’m not being able to select a UT EXO with the exact
amount you’re requesting which means change is going to come back to my
wallet that transaction kind of seals our relationship if they know our
wallets what this does is instead of that one transaction that results in me
sending you Bitcoin and change coming back to me it splits it up into two
transactions one where the only thing that an analytics firm can see is
something from a wallet my wallet going to you there’s no change that change
apparently is addressed in a second transaction that goes from you back to
me and apparently in the analytics world that is enough to cause enough of an
obfuscation or dust storm that kind of hides our relationship it may be where
like since change came back the the the assumption is something occurred here
whereas if no change comes back I might have just moved coins from one cold card
wallet to another cold card wallet because of I’ve moved the whole amount
and no change was needed the pay swap apparent so in it at the end of it it
takes one single transaction between two unique individuals turns it into two
transactions that makes it look like almost nothing it’s called pay swap
Aaron Vaughn we’re done wrote this for Bitcoin magazines
January the 23rd the name of the or the headline of the article is how pay swap
can confuse blockchain analysis benefiting Bitcoin privacy for all so go
read it it’s kind of fascinating and the guy who made up is the guy with all the
letters of his name what’s a ZW yeah cesium and ozium NSC pxj can’t wait to
buy that gentleman a beer yeah it was proposed no that can I’ve heard of that
I was just gonna say it was proposed on the Bitcoin day of mailing list this
week yeah well he I’ve heard of that dude before people tweeted about him
before he gets he gets paid in Bitcoin and nobody knows who he is I mean that’s
that’s the world we live in today that’s awesome all right Murray Mauricio you
get some closing thoughts I guess talk about letting your company what’s what’s
going on up in Toronto everything yeah I know I mean listen we like I said you
know where were we where transparency on our sleeves you know our whole loan
product is built on real temper preserves so I think that’s why people
you know like our service and one of the big drivers but yeah I mean I’m the
co-founder of Lenin we we’re a Bitcoin company that lets you make the most of
your Bitcoin we have savings accounts where you can earn interest we have a
bit Club a close where you could look at where your bitcoins sitting and
cold-storage insured with the goal and we can give you dollars and then the
last one is b2x so that’s a product that lets you double dip pick one you have
through a dollar loan and essentially it’s just a quick way for using your
Bitcoin to buy more so that’s what we do we’re based in Toronto and me being
Venezuelan we have a lot of users to let them everything’s in Spanish so yeah you
know stop there but that I oh dude well i hey man i look people creating
companies in this space you’re in motion you’re doing good out there up there and
toronto community is getting bigger bigger right it is man we got blockchain
week coming and i want the party come come
april when is it in april you got a little cutoff there
oh I check the exact there but I’ll say it in the show but their official ook
button alright alright yeah you’re getting a little cutoff we’ve obviously
reached the end of the show here but thank you Thank You Mauricio for being
on today I really appreciate your awesome you rock let’s move to I want to
Gigi you do uh you do a German language anything you want to say about that any
promo you want to give yeah well I’m I’m probably most well known
for writing the 21 lessons which just came out a month ago in book form so if
you want to support me the best thing you can do probably is buy the book on
Amazon I’m currently in the process of also setting up a BTC pay server so you
can part with your precious sets to get the book as well you can also read it
online all my stuff is published under a Creative Commons license so we can do
with it what you want and it’s 21 lessons calm I published some other
articles on there GG calm my most recently wrote for the Bitcoin times
amber in Australia’s behind it I also wrote some articles for Bitcoin in
Canada I curate Bitcoin stuff on Bitcoin resources come and as you said I
recently started German speaking podcast with a couple of friends where we talked
about Bitcoin and sometimes also talked trash about shit coins and that’s it you
can check that out on Twitter I’m there Gigi on Twitter and all the stuff is
linked there yeah and all these guys Twitter’s are linked to below and that’s
really a great place to get started with them because from there Twitter’s they
link to all the stuff that they they’ve talked about and Gigi just dropped some
names that have been on the show you mentioned svet skis publication down in
Australia you mention Francis who’s obviously been on the show before with
the full Bitcoin and yeah man we’re all it’s a small world but a best guest in
the space here maybe I bring it to you every Friday ok David Bennett you’re
gonna you’re gonna tie it up here talk about your podcast obviously and in
what’s going on with you well Bitcoin lean and has been going on
I just passed what am I about to drop episode 186 after I get
done here generally speaking if you want to stay up with the news I try to find
and filter the best news between the night before I do the show in the
morning that I do the show so that people can drive to work and be current
without having to read and get into an automobile accident and every once in a
while I will send things along the way like today I’m talking about Terra Preta
soils because everybody is wetting their pants in the Bitcoin space all of a
sudden over the last two days I’ve seen more climate change tweets from people
that I’ve ever seen before in my life and I don’t it doesn’t matter whether
you’re for or against or believe or don’t that’s not the point the point is
is that there’s a lot of people that they kind of cry and they don’t do
anything about it and there’s something that can be done to make you feel better
at least and Terra Preta soils is one of the ways that carbon gets sequestered
into the soil for over a thousand years I talked about I’m starting a series not
a series of that but over the next few shows I’m going to be getting into
biochar and the pot and some possible even entrants in how it could possibly
even work with Bitcoin mining because this production causes an awful lot of
calories to be expended so yeah if you want to get into the news and some of
the price action and some other stuff that’s why it’s called Bitcoin and
joining me I’m doing it weekly now so join me every day except for Saturday
and Sunday I don’t work on weekends alright dude that is that’s awesome
you’ve got a little beyond Bitcoin going there too I like that people like to
hear other topics sometimes alright guys thanks a lot guest panel you rocked as
usual you will all return this wasn’t your first rodeo all of you a return
guest so it’s great to have guys come back like this and they’ll come back
again the future everybody out there you get a new show like this this week your
Bitcoin is every Friday the beyond Bitcoin shows every Saturday every other
day that we could get a new show the one Bitcoin show who knows what happens
you’ve got the latest news here you got all the energy you’re in motion here so
pal Matt like what I’m adam meister the bitcoin
much from number subscribe to channel like the video share this video shabbat
shalom everyone everybody have a great weekend thanks a lot guests and we will
see you tomorrow bye bye everyone see

6 thoughts on “This week in Bitcoin- 1-24-2020- Centralized time- Coinbase, Bcash, Fed Coins, Venezuela, Insurance

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