Crypto Wealth Show E 2 - Bitcoin v bitcoin cash

Full video here:https://www.youtube.com/watch?v=8vWYfdj5cVI

 

Bitcoin v bitcoin cash

 

Transcript:

 

[00:00:42] So this is the libertarian adviser podcast. Right now we're going to talk about bitcoin vers bitcoin cash has been a hot subject the news lately. Yesterday a coin base the largest U.S. exchange decided to add Peercoin cash to their lineups. Right now you can get a Bitcoin bitcoin cash Ethereum and lite coins through coin base which is the largest U.S. exchange. Now that news, was at dinner yesterday talking about bitcoin cash with one of my friends and apparently that's right when it got added yesterday because it is uploaded to the roof it went up like 70 80 percent in one day. So it's just bonkers but a lot of people have been asking me what is the difference between Bitcoin and Bitcoin cash to know. Is bitcoin cash to some sort of people that clone bitcoin and then hijacked it and is trying to use that brand name? or what's really going on here. So what I want to do is I want to dispel some of the myths and some of the rumors about what's really going on and it's probably a little bit hard to see at all especially if you guys are listening to me right now be impossible to see but I have a little white board and what I have on the white board is something to represent what bitcoin is and then something another picture that's going to represent what bitcoin cashes. The first point I'm going to do is I want to go back to the fork that happened on August 1st and basically this worked a lot like a stock exchange.

 

[00:01:57] So think of it this way if you had one bitcoin prior to August 1st you would then have another. You then have one bitcoin cash. When when things forks if you had one Bitcoin now you'd have one bitcoin cash and one bitcoin. So not too much no risk in terms of you know one exploding and the other one dying. You mean you're missing the boat and that you know as long as you sell you wouldn't miss the boat and anything you'd have bought for them. So what bitcoin attempted to do is they wanted to do something called segregated witness and actually by attempted to do is say they've already done this. And segregated witness does is it takes some of the data which was the signature in this case which is what they called the witness and they put it on a different block. So right now that signature would take about I think is about 60 percent of the overall data is in that signature. So it's really when you only have one megabit megabyte block you're going to need. And now that the fact that bitcoin has really exploded in popularity it's creating a problem because imagine that you've got a glass and you know all this in your glasses over falling over overflowing. That's sort of like the bitcoin transactions right now. They're overflowing. They can't.

 

[00:03:08] There's hundreds of thousands of transactions that are unconfirmed and how they go about confirming these transactions you know hey if you're willing to pay 20 bucks then maybe you get in and if you're willing to pay you know two dollars maybe you're not going to get it. And I just checked this a little while ago and let's check in right now. But the bitcoin average fee was some around thirty two dollars which is absolutely insane because you know it used to be like more like 30 cents or even three dollars. I thought that was high. But now we're at 32 dollars is absolutely insane. So a bitcoin did is they really want to lay the groundwork for something called the lightning that Rick when Segway would allow them to lay the groundwork for lightning that work. So

 

[00:03:44] the reason why Bitcoin so there is to back up a second again there is two basic main ways to scale bitcoin. One was to do this. Excuse my language is cluster fuck. Known as segregated witness and letting that work and the other way was just to say hey we've got you know we're only dealing with one megabyte blocks. All we're going to do is just increase the block size to eight megabytes. Problem solved. So in order to do any of these changes what you have to do is you have to get consensus from 95 percent of all the parties involved. So you know the miners the nodes you know even you know the users would then obviously be able to vote with their wallets and that's what we kind of saw a little bit yesterday. So it's very very hard to get 95 percent consensus. I mean if you think that you know when I started getting into and basically just covering crypto moving away from politics I thought that OK great movie for politics I'm going to do things Blish anymore wrong because there is plenty of politics that are in Bitcoin. And so the people you know they've call it big blockers and I'm saying this in quotes right now. So on the one hand you have the people that wanted to make the buck bigger on the other camps you had the people that want to do this segregated witness. So the people that want to make the block bigger they realize you know we're never going to get 95 percent consensus.

 

[00:04:59] We know that this other way that they're going to do it is not going to work or it's certainly not going to work in the way that they say it's going to work. So we're going to go and we're going to pick coin and create bitcoin cash. So what they're doing is they took a one megabit one megabyte block and simply made it eight megabytes. The people over over a bitcoin Segway or what now is referred to as Bitcoin Core. What you would also refer to as Bitcoin what they did is they took that segregate they took that data put it on a separate block completely changing the entire landscape an entire architecture of what bitcoin is where you know for all intensive purposes bitcoin is dead. There is the bitcoin Satoshi Nakamoto rolled out in 2009 is not the bitcoin that we have now because by having these extended blocks it's making way for this lightning that work. And with the lighting that we're going to do is in essence create these these hubs. So instead of you know me trading with you it's saying OK well you know if you and I trade you know with each other quite frequently then we can do is open up this you know this basically network where you know we only have to pay one transaction fee and then when we eventually close things out then we can settle up so let's say you know you know I'm like or I'm Tim my brother's Mike. So you know you know we buy the drinks and go outside.

 

[00:06:19] No restaurants together and so instead of you know so maybe you know we put up you know to like coins so today you know that 600 bucks and so you know I take them out for a night and you know he owes me let's say 100 bucks then he can send over the appropriate coin then you know maybe he takes me to a sporting event and then I send over back the appropriate coin. And so all the while we're not having to actually spend that much and sorry I kind of jumped on the White coin. But this is getting into bitcoin is going with all this. And so what they're trying to do is they're trying to say you know we create these hubs then what's going to happen is you know you're going to cut down on transaction fees because you're only going to have to pay the fee when you settle things up. Now what if I then want to then you know then send them one over to Bob. Well I don't have a connection with Bob. Tell them what they're saying. Oh Mike has a connection with Bob then through you know through this you know network of basically it gets its super super complicated how they're trying to do this but what the groundwork that they're laying out for is they're going to have the Hub be the banks. It's so obvious that it's not even funny. So Sarah to witness allows for all the KYC know your customer laws for all the anti money laundering laws.

 

[00:07:30] Not necessarily a bad thing at certain levels but when it comes to peer to peer transactions if you're having to go through a bank you're no longer in a peer to peer transaction and if you look at the actual Satoshi Nakamoto is white paper I believe it was called Bitcoin peer to peer electronic cash or it was something along the lines but it was peer to peer. And so if you're having lighting that work you're completely getting rid of the peer to peer. And so what I see is that the big banks have completely come in to hijack bitcoin and you're thinking oh yeah that sounds kind of crazy. I mean if they're going to hijack Bitcoin you know would they have to do they'd have to take over the core development and for some of you you're probably thinking core development you know Bitcoin has a core development. They do they have a core development and it's really kind of secretive of you know you know all the people that are in it. You know how they get together. I mean it's bad enough we have a Federal Reserve Board let alone that now we have a now that we have this other network. I've got my wife call me in and I just told her not to call me. So I was doing this but anyways with bitcoin with this lighting that work is I just absolutely see it laying the groundwork that put the banks and between you and bitcoin and how it got hijacked is through the court development because the core development team if you really look at it because like me I follow the money. That's what I do. And so the money comes from the fact that you had a company called AXA. So they say the largest insurance conglomerate in the world and what they did is they made a 55 million dollar investment I believe somewhere around run run about there to this company.

 

[00:09:05] BLOCK stream block stream were the ones who were funding all of the core developers. In the beginning you had a lot of people who are more of the hardcore libertarians people that were philosophically very you know more of like a leave me alone. You know you know almost an anarcho capitalist was the original coders. Now you've got a lot of money introduced and you've got people that are basically just shills for the big banks and so I didn't even tell you the craziest part of this story yet because the story gets really crazy because AXA the head of AXA up until recently was Henri de Castries headed to Castries also was the chairman of the builder Brigg steering committee on two separate occasions so you know when it comes you know conspiracy theories. I mean you don't have to go too far to see the fact that basically the Build-A-Bear group has its hands inside of Bitcoin. Now maybe that's me just being a little bit too paranoid or conspiratorial but you know if bitcoin was meant to supplant the banks if bitcoin was meant to be a way where I can send something of value to you and nobody can stop that. Well now if I have to go through a lightning network well then now there's someone that could stop me. And then we're right back to basically a bank so basically to replace the World Bank or a hub with a bank and that's what we're going to get. I'm not going to and I'm not saying that you know there are some benefits to letting network like so in the example where I'm trading with my brother yeah that in that sense I can see with IP could be pretty useful.

 

[00:10:33] But once you start getting into you know all of these you know let's say fourth fifth sixth seventh generations down the line of you know you know you know Mike knows Bob who knows Joe who knows Fred who knows Tom and so we're going through all these you know rapid gyrations to get the money back between Tim and Mike. It's just absolutely crazy. So when you look at you know who forked who I'm really of the opinion that an August 1st it was really more along the lines of Bitcoin Core. You know bitcoin BTC that they're the ones who actually you know really staged a coup. But this is stuff that's really inside baseball. It's really over the head of probably 99 percent of the public is probably over the head of most people even have bitcoin right now and so you see these people who they called themselves big Bitcoin maximalists where it's so you know bitcoin or die Bitcoin was first Bitcoin has to be the best.

 

[00:11:25] Well bitcoin got hijacked by the Bilborough group and that's very very obvious. And everything they're trying to do right now is to shoehorn Bitcoin into the legacy banking system.

 

[00:11:35] So you see a lot of personal attacks on people in this movement. So one of the most prominent people in this movement would be Roger veer Roger veer is also known as Bitcoin Jesus. And he also as you know he has bitcoin dot com bitcoin dot org. All of us were a first investor in bitcoin and really he probably has the most to lose of anybody over this because if you were to go along to get along if he were to embrace everything they're doing over it bitcoin he could probably even enjoy even a bigger payday. He could you know he's got a lot riding on this. When I see a guy like him you know really stake his net worth stake his claim stake his name and everything else to then go ahead and do bitcoin cash. A lot of people are looking at that and saying you know he's you know he's selfish. How dare he. No clones bitcoin and rips it off and his brand mark infringement and they don't know this whole other story that's behind it. And when you really get down to brass tacks of what you'd call it and think about you know the usability of bitcoin and after the fork you know let's see where the rubber meets the road you guys implemented this Sagarin a witness to bring down fees. Where are the fees today. There are 32 dollars almost to drop a bomb there. But there are 32 dollars whereas the fees for bitcoin cash like 27 cents.

 

[00:12:53] So you guys implemented this whole cluster you know what's over here at bitcoin and it actually raise the raise the fees of Bitcoin and Bitcoin cash. What they did actually lowered the price of bitcoin. So right now you know it's either put up or shut up right now for the bitcoin people or bitcoin core people because their solution right now has not worked. And so one of my theories is that a lot of people who buy have bought bitcoin recently they've never actually traded it with anybody they've never actually transacted and never purchased anything with it. And so I did a little experiment and went over to some business partners and said hey you know you guys have some crypto. Have you actually sent it to anybody. And they're like No no words on Coinbase or word on cracking or whatever. And so I did a little experiment where I sent a dollar of like coin to one of my buddies that I work with and you know got the transaction super quickly and you know it costs like a quarter to do. And there's other wallets for would probably even cost less than that. Now that dollar I sent him within like three days turned into like three dollars so you know maybe I should have waited three three days. But you know who cares. But yeah. So I think it was right when the price went from a hundred to like 330 within the span of like four or five days just absolutely nuts.

 

[00:14:04] But where I'm getting at all this is that Roger veer had a lot to lose by jumping off the bitcoin bandwagon that he was basically you know customer number one two from an investment standpoint and then now see all the people Royd is bastardizing his name and people saying you know oh he's a felon and he's not allowed in America. Well I mean I saw him like two or three Martin I'm not friends with him or anything but you know I did see him speak a couple of months ago at the nexus Earth conference so you know the fact that he's banned from America I mean I just unless that's recent. You know I was at one point two feet away from him a couple of months ago. So I don't really think that is the case. And then his felony was you know he was speaking out against the government and then they caught him in like 95 selling firecrackers on the Internet and he was basically the only person ever go to jail for that. And so you know people want to start using you know this guilt by association technique. They really better be careful because it's the same guilt by association technique that everybody else is using against bitcoins saying you know Bitcoin is the money of terrorists bitcoins that money of drug launders bitcoins the money of drug dealers. You know pedophiles all this other stuff.

 

[00:15:11] So now you're trying to say oh bitcoin cash it's the you know pedophiles use bitcoin cash you and this is in regards to Rick Voth Falke veneer of the Icelandic pirate party of comments that he made that were completely taken out of context by the fake news particularly Business Insider in this case and really what he said is the headline was you know child porn should be legal and all he was saying is he goes Well there's laws in Iceland where let's say I caught somebody engaged and act with a child and if I wanted to get some sort of basically proof of it and maybe you know take it to a second you know video of it as proof to give to authorities under Icelandic law he couldn't get into base to go to jail for that. And so now people are spinning this as you know big encash people want you know you know children to be used you know in sex slavery and all this other stuff and all this other crap that you know really should be way beyond what the crowd is going through or the crypto world is going through. And so I'm not really met married to any one of these crypto currencies. There's 4300 plus of them now and. And again you know what I want is I want transactions where it can't be stopped. I want low transaction fees. You know I'd like to have it anonymous. And right now bitcoin is not anonymous. It's not low transaction fees. It's not even quick. I mean it could take you know like a day to send somebody some money. So I don't know. So what they're trying to do is create this massive problem. So it's to hide Galian dialectic of problem reaction solution. So they've created the problem. The reaction is we need to do something about this which they do. And so the solution is up we've got the lighting that work and the lighting that work will be the banks. It's very very obvious that. And mean in the banks you don't want to act like they're against crypto guys like Jamie Dimon or Jamie deamon.

 

[00:16:57] I like to call him he likes to act like he is against crypto currencies but Ethereum there in the Ethereum alliance where they have like things like 170 something patents. BLOCK chain technology. So on one hand Jamie Diamond's bad mouth thing. BLOCK chain on the other hand his company has 170 patents on it so maybe that's a way to you know maybe stop future competition by saying hey we've got the patent on this then we're going to shut you guys down. But you know there are many people who are maybe putting satellites up into space out of Earth's atmosphere that's out of any jurisdiction that they don't give a shit about your pen. It's going to unless you're going to take a laser beam to start shooting them down you're not going to be able to stop this stuff. And so you know what I see is that the banks are definitely trying to insert themselves into this equation and really it be the dream for the government and standpoint and it would also be it would also in some regards be sort of like the mark of the beast type network because now you know all of your money through bitcoin is is able to be tracked and you don't necessarily know whose wallet that's on. But you know I think there's companies like dark data services. Another one that starts things like rivets or something that certain services are and there are companies that can do this forensic work. They can go examine IP addresses there's you know if you're on base obviously your money is tracked at that point.

 

[00:18:21] And so I'm not you know over here encouraging anybody does anything illegal or tries hiding profits. But you know there is ways where you know a lot of people who think they're being anonymous right now are not being anonymous and a lot of what was sold to the bitcoin community particularly the libertarian community back in the beginning which got this up and running. You know a lot of it ended up being lies a lot of it being smoke and mirrors a lot of that was more of a sales pitch of well we didn't really know exactly how it was working but some really smart people told us that worked this way. They told us that it was anonymous. Well it's pseudo anonymous. And then if you look up the you know the word pseudo in the dictionary it means not so Bitcoin is not anonymous there's other ones I think like CZI cash Manero dash and some other ones that are going to be more anonymous than bitcoin. And you know when it comes to the future you know we're going to have two futures and those futures are going to be you're going to have digital currency. It's going to be do you on digital currency that's controlled. MARK OF THE BEAST track trace surveiled run by the government or do you want a digital currency like you know let's say Manero. And in this case where you know it's anonymous can't be tracked can't be traced can't be stopped because I mean imagine the political dissidents. Imagine if Hillary got in there. I mean I'd probably be in a FEMA camp right now. But imagine if Hillary got in there and we had a bitcoin like system and all of a sudden Hillary say nope no temple.

 

[00:19:43] He's over there you know causing a ruckus you know exposing us. We're going to show off his money. And that's that's really the danger of piracy all this stuff going. And so I see a lot of people who are very uninformed on the subject who are then literally going to be leading us marching us into this Mark. Mark the system and that's not to discourage you from getting into cryptos because there are a lot of very very fine cryptos. And right now I'm in the midst of creating a company built around crypto. And I have crypto in the name and I have the I have the domain name saved. I could have made it bitcoin but I'm not you know I really don't have a huge dog in this fight. I don't is going to use what's better I'm going to invest in the philosophy I'm going to invest in the ones where you know basically the different freedom coins and I don't see Bitcoin as being that. I think it started. I'm glad it's here. I'm glad Satoshi Nakamoto whoever you know he or they or she or whatever says transgendered person made this up that. Glad they did it but it did get hijacked by the court development. It got hijacked by you know techies who don't necessarily understand economics.

 

[00:20:46] And when it comes down to the simple test of hey if I can send you you know 50 bucks in bitcoin cash and it cost me you know a third of a penny or I can send you 50 bucks and bitcoin and I've got to pay an extra 25 dollars right now 32 dollars on top of that. And it cost me eighty two dollars versus one that could cost me 50 dollars and you know 20 cents. You know it's really is really not that hard calculus to figure out which one I'm going to want to use. So anyway that's my little take on bitcoin and Verbeke in cash. I'm of the opinion in case you can't tell that when cash is Robeck coined at the end the day. I don't really care. And you know I don't make one other point about the tax proposal. I'm very glad that the rate is getting closer to zero. I think the new plan is a little better than the one that was out a few weeks ago not nearly as good as the one that was out in May. But this plan is already obsolete before it even begins because of exactly everything I'm talking about in this not actual reform the current tax plan is yes is moving the number closer to zero. I'm very happy about that. Fantastic about that but if we have Republicans controlling everything I mean the best case scenario possible for conservatives and there's nothing that's being cut from the budget. No chance of the budget being balance. And I think because of the fact the government can just print money that there is no reason to even have taxes if they can just print money to cover the taxes anyways. Then why do you need to extort us. And the reason they need to extort us is because it's not about getting the money. It's about having their control.

 

[00:22:16] And that's where the taxation system has been about all from the beginning. And actually that's a little bit not true because in the beginning of of America the tax system was there to actually you know we had real gold and silver and so people had the government needed that gold the government needed that silver and to then replenish your stockpiles. Because they weren't they had a continental and that you know crashed down to zero so the founders said no only gold and silver shall be legal tender in America. And now we've gotten so far away from that that I think FDR confiscated gold in 33. So Americans really couldn't own it or it wasn't the dollar wasn't convertible into gold after 33. Then you go back to 1971 that's when Nixon got us off the gold standard from the terms of foreigners at that point weren't allowed to convert their Federal Reserve Notes or dollars into gold anymore. So with bitcoin. Why I see this being such a great advance man or a cryptos in general why is this being such a great advancement for humanity is now all of a sudden we're not being ripped off by the banks who are printing this money the money is going to the ultra rich first it's going to people who have money in their stock in the market first. I manage money for a living. So guess what. That actually helps me out but I don't want my great great grandchildren being slaves to the system. So that's why I'm passionate about it. Where were all of these different wars.

 

[00:23:38] You know if you can't crowdfund a war you can't force people to you know not force if people won't voluntarily give up their own money to go do something that is probably a bad idea. I don't need the government putting a gun to my head and then making it sound like I'm giving some sort of charitable contribution. And you know that right now it can never be repaid absolute never be repaid. But getting back to the tax plan is we need to have a consumption based tax with crypto currency exploding with people having all of these gains. It is a tax nightmare right now especially for the early adopters an absolute tax nightmare of trying to figure out what their basis is how do they prove you know where are they buying things for business. Were they mining versus buying bitcoins because there's two different forms of taxation on that. Did they inherit the coin. There is so many complications dealing with this and that's why we need to move to move to a consumption tax so you know let's say you know you're a poor kid from the ghetto and you're buying 200 dollar Jordans you should get taxed for that because you shouldn't be buying 200 dollar Jordan's. Well you should be doing is using her money to save and invest for the future and we will maybe in the system we exempts poor people from this from at least in terms of essential goods. But when it comes to when it when it when it comes to the overall economy we should be encouraging people to save and invest and to make more money. I mean right now we are taxing people making money. I mean so how do you expect to get more money in the economy by disincentive causing people to actually work.

 

[00:25:10] And so that's why I'm really upset with this tax bill. You know again I am a Trump fan. I'm not even sure if I'm going to vote for him next time. Probably never going to bother voting because you put Jerome Paul in intro and Paul is basically Janet Yellen 2.0. And so from my perspective is let's say there's a thousand problems out there and let's say Trump fixes 999 if you don't fix that one problem that's remaining is the central banking system and you don't fix I don't care about the other 999 things that you've done because the rest of it doesn't even matter. And that's why with Krypto it's a way to hedge against all this stuff because eventually eventually you know our day is going to come as a currency. You know luckily right now there's other currencies are doing even worse than us. So again I don't know the exact timing on this in the in the interim the currency might actually get even stronger because of demographic information and that's a whole another whole another rabbit trail that I don't feel like going down right now in the long run. You can't have you know 200 trillion dollars of unfunded liabilities you have 20 choline dollars a debt that doesn't include Social Security does include Medicare that's even more of an unfunded obligation and Social Security doesn't include the wars doesn't include healthcare does include any of that stuff. And so I just see this as a slow motion train wreck that's going to be absolutely devastating.

 

[00:26:25] And so you know have some money and Krypto make sure you know how much money you can lose first because you know if you are not willing to have your Krypto go down 90 percent which actually happened to the consonantal. If you're not willing to have a go down 90 percent you shouldn't be in it you should figure out how much you're willing to lose how much you can stomach losing how much you can actually afford to lose and then kind of reverse engineer. But you know I think it's also a good idea for people to have you know physical gold and silver. Also a good idea for people to have stocks and you're probably thinking oh well if everything crashes then you know I wouldn't want money in stocks. Well in Germany in the early 1900 you go for like 19 you know I think it's like 19 10 or 1913 in 1923 the German stock market went from just about you know like 100 200 to 23 million. And let's say you own Mercedes stock back then and so Mercedes the oldest car company in the world. They the Germans went through the gold market the Renmark the Reisch mark and then the deutsche mark. So if you had you know a hundred dollar sitting and Goldmark will eventually you're wiped out and was basically you know you know worth next to nothing. Maybe you get 10 cents in the dollar. Then you had the right Mark.

 

[00:27:33] Same deal then you had the Renmark or so I think it was Renmark then Reichsmark the same deal but if you had the 100 shares of Mercedes stock well then it was a lease then transposed from you know will now my 100 shares are getting priced in this now asking price and not and it's getting a price and this then eventually getting price and Deutschemark Well I guess eventually getting priced in euros and what that is is a hedge. Now it doesn't mean that the average citizen now is of southern Germany was to uncrate in 1923 it meant that now they were taking a wheel barrel over Tigo a wheelbarrow to go buy a loaf of bread. And so I think in the long run a long enough time horizon certainly I'm a pretty young guy. So over the course of my lifetime I think that's more than inevitable especially if you know in the next few years it me crazy life extension technology coming out crazy advancements and in the biotech space. So I mean if people can live another 10 years I mean they might be able to live another 80 at the rate things are going but at the rate things are going you know I don't even know if you want to live another 80 and at the rate things are going. You know I'm not sure if you know we're going to provoke some sort of war over North Korea. Oh yeah the big headline is that you guys see this North Korea you know is apparently amassing stockpiles of Bitcoin. And so you know you've got to throw in you know got to give everybody a lot of fear and say oh now Bitcoin that's the money of Kim Jong moon.

 

[00:28:52] So I've got to get rid of it and you know severed it because it was at this point probably rambled on a lot more than I'd like to but you know with bitcoin Verbeke one cash it's my opinion that Bitcoin cash Israel bitcoin Soest my opinion that I don't really care because I think there's other ones that really do things better than even what bitcoin cash does. But at the of day no I appreciate Roger Vere's doing I think a lot of the people who are in these bitcoin maximalists I think of Loudon's don't understand the full story of the inside baseball what's going on and they just think that you know that basically bitcoin cash is trying to hijack the brand name when really the core development of Bitcoin. They're the ones who got hijacked thanks for watching. Please like and share. I've been somewhat ghosted on Facebook meaning Facebook. When I go live doesn't really show what anybody says to a super limited amount of people these days. But no I appreciate everything let me know if few more questions about this subject. It is pretty complicated there's lots of areas and I can go on on here but no wait like me talk about and we'll go from there to catch everybody. Thank you.