What Bitcoin Did with Peter McCormack
Business:Investing
“We need to build a system that is not going to create any sort of systemic centralisation and the incentives are aligned so that doesn’t happen, that can defend us against fiat money, now the question of whether or not fractional reserve money still emerges in that system is another debate.”
— Eric Yakes
Allen Farrington is the co-author of ‘Bitcoin Is Venice’ and Eric Yakes is the author of ‘The 7th Property’. In this interview, we do a deep dive into the future of the Bitcoin-centric financial system, focusing on self-sovereignty, scalability, and the future of banking. We also explore the potential of Bitcoin to serve as a superior form of money addressing issues of custody and sovereignty, and the separation of money from state influence.
- - - -
The development of Bitcoin’s ecosystem is a balancing act: making Bitcoin scale whilst ensuring it maintains its offer as a medium for self-sovereignty. In this podcast, we discuss the current trade offs being debated within the community, focusing on the impact of high transaction costs, whether the Lightning Network equates to true self-sovereignty, a growing concern that UTXO ownership might become a privilege, and the role of covenants.
The underlying issue is the potential for the community to develop a neutral financial system directed by market participants. We discuss the potential for Bitcoin to serve as a better form of money, particularly in terms of its scarcity, its speed and cost of movement benefits, and the potential for shared custody models. We address the risks and trade-offs associated with moving into a Bitcoin-centric financial system, particularly in terms of custody and sovereignty.
Eric and Alan explore the idea of reducing information asymmetry and constraints within economies, and the implications for fractional reserve systems. They emphasize the importance of creating systems that increase information transparency and reduce the likelihood of fraudulent activities. The guests also discuss the proposal for “Ark”, its prospective role in a Bitcoin financial system and its potential to address Lightning liquidity issues.
As we move forward, it's clear that the Bitcoin ecosystem is at a crossroads, with emerging technologies offering both solutions and new challenges. The path to a Bitcoin-centric financial system is fraught with technical, economic, and philosophical questions that require our collective attention and ingenuity. This podcast is a chance to hear how two of the community’s leading thinkers are collaborating to consider these complex issues.
- - - -
This episode’s sponsors:
Iris Energy - Bitcoin Mining. Done Sustainably
Bitcasino - The Future of Gaming is here
Ledger - State of the art Bitcoin hardware wallet
Wasabi Wallet - Privacy by default
Unchained - Secure your bitcoin with confidence
Bitcoin Atlantis - A Bitcoin conference in the Atlantic
Swan Bitcoin - Invest in Bitcoin with Swan
-----
WBD756 - Show Notes
-----
If you enjoy The What Bitcoin Did Podcast you can help support the show by doing the following:
Become a Patron and get access to shows early or help contribute
Make a tip:
Bitcoin: 3FiC6w7eb3dkcaNHMAnj39ANTAkv8Ufi2S
QR Codes: Bitcoin
If you do send a tip then please email me so that I can say thank you
Subscribe on iTunes | Spotify | Stitcher | SoundCloud | YouTube | Deezer | TuneIn | RSS Feed
Leave a review on iTunes
Share the show and episodes with your friends and family
Subscribe to the newsletter on my website
Follow me on Twitter Personal | Twitter Podcast | Instagram | Medium | YouTube
If you are interested in sponsoring the show, you can read more about that here or please feel free to drop me an email to discuss options.
Bitcoin is Resistance Money with Andrew Bailey, Bradley Rettler, Craig Warmke, & Allen Farrington
How Bitcoin Wins with Lyn Alden, Natalie Brunell, Alex Thorn, Thomas Pacchia, & Christopher Gordon
Bitcoin & Human Rights with Alex Gladstein & Natalie Smolenski
The Economics of Bitcoin with Lyn Alden, Preston Pysh, Allen Farrington, Max Hillebrand
A CheatCode for Payments with Natalie Brunell, Ben Arc, Calle, & Obi Nwosu
A Paradigm Shift in Money with American HODL, Preston Pysh, Harry Sudock & Jeff Booth
The Bitcoin Value for Value Thesis with Oscar Merry
Defeating the Regulators with Freddie New
Why Bitcoin’s Design Fixes Money with Nicholas Bowick
The Ultimate Bitcoin Use Cases with Alex Gladstein
Wall Street Embraces Bitcoin with James Lavish & Eric Yakes
Bitcoin - We’re Still Early with American HODL
Why We Must Upgrade Bitcoin with Vortex
How to Play the Money Game with Mark Moss
The Battle for Bitcoin with Bitcoin Mechanic
Michael Saylor’s Bitcoin Moonshot Revisited with Andy Edstrom
The Challenge of Scaling Bitcoin with David Seroy
Bitcoin ETFs Have Changed the Game with Nik Bhatia
The Maturing Bitcoin Narrative with Grant McCarty
The Perfect Bitcoin Allocation with Raphael Zagury
Create your
podcast in
minutes
It is Free
The emPOWERed Half Hour
U.S Property Podcast
Aligned Money Show
Dubai Property Podcast
The Ramsey Show
The Clark Howard Podcast