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hi everyone this is Roger beer it's

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Saturday August 19th and I want to show

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you guys a presentation that originally

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I made for the Pantera bitcoin group

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back in March of earlier this year but

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in light of everything that's going on

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with Bitcoin cash and Bitcoin legacy

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today I think that this is very relevant

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so keep in mind that these slides again

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are back from Mark shows about about six

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months ago but I think they're still

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very relevant here so we'll start off

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with a what is Bitcoin right of course

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we all think we know what Bitcoin is but

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I want to talk about why I think bitcoin

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is important so right from the from the

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Satoshi Nakamoto white paper or the

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title is that it's a peer-to-peer

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electronic cash system I think that's

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important to keep in mind that's the

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original title of the white paper but

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what makes up a peer-to-peer electronic

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cash system right we need to have good

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money cash means good money and here are

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the characteristics that make something

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good money and we can start that it's

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you know easy to store hard to

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counterfeit of scarce divisible

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homogeneous that's a little bit lacking

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a Bitcoin but there's room for

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improvement there anyhow durable and

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they're not easy to transport and uh

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that's the one that I think we need to

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focus on a bit more and core and their

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roadmaps are intentionally damaging

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bitcoins ease of transport by making the

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blocks full and the fees high and the

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confirmation times long and the double

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spins easy that's damaging one of these

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incredibly important characteristics of

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Bitcoin that make Bitcoin useful as

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money and if you damage any of these

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characteristics here Bitcoin has been

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less useful as money than it otherwise

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would have been so it's very very

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important not to damage any of these and

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unfortunately course roadmap is

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intentionally damaging the ease of

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transport for for Bitcoin and if you've

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been around Bitcoin for a while you'll

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know exactly what this chart is and

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again this is back from March now we've

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been bumping up against a limit for a

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while here but you can see for all of

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bitcoins history the blocks were never

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ever full there was tons of room for for

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additional transactions until the

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beginning of

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this year around marks the blocks became

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completely full and that when the blocks

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became full that caused the average

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conformation time to skyrocket around

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the time that I took this screenshot in

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March earlier this year the average

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conformation time was about two hours

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for a Bitcoin transaction that

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previously would always be confirmed in

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about ten minutes because there was

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always plenty of room in the blocks for

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every transaction to be included and

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around the same time that the blocks

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became full everyone had to bid against

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each other for room in that block and

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the big the fees that people had to pay

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to use Bitcoin skyrocketed from being

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something very reasonable around the

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penny a transaction to where people were

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paying a quarter of a million dollars

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per day in transaction fees just to use

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the Bitcoin network and the fees are

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somewhere in that same ballpark today

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and right around that exact same time

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that the blocks became full and the fees

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skyrocketed bitcoins share of the total

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market cap plummeted and we can see that

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right here back when I took this

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screenshot it was still above 60% today

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Bitcoin is below 50% and that brings us

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back to the economic code of Bitcoin

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that I love to say is so incredibly

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important and a really basic concept in

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economics it's something called

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substitute goods and it's important to

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understand the definition of what a

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substitute good is and substitute goods

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are two goods they could be used for the

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same purpose if the price of one good

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increases then demand for the substitute

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is likely to rise so in the

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cryptocurrency ecosystem there's a bunch

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of substitute goods right we have

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Bitcoin litecoin aetherium Manero -

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those calling take your pick there's a

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thousand and one altcoins out there with

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similar characteristics some are

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certainly better than others some have

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bigger network effects than others but

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there's a lot of competition there and

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things like shape-shift and the jacks

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Taiyo wallet that make it so incredibly

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easy to convert from one Bitcoin to

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another make it really really easy to

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substitute one of these crypto

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currencies for another if one's not

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working for you

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and we saw that happen exactly at the

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same time when the blocks became full

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and the fee skyrocketed and the

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confirmation delays increased in the

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huge amount for Bitcoin we saw Bitcoin

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share of the market cap plummet at the

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exact same time the alt coins rose like

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crazy and that's because people are

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using alt coins as a substitute good for

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Bitcoin because if bitcoins no longer

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the easiest fastest and the cheapest and

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safest way for them to use their their

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money they're going to start using one

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of these substitute goods and that's why

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we've seen the alt coins just skyrocket

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as far as their total market cap goes

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and the reason for that is because we

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have these people at Bitcoin core and

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block stream and they openly and

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intentionally advocate for one megabyte

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blocks and they intentionally and openly

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advocate that they want to create high

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fees on the Bitcoin network and they

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openly state that they want the blocks

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to be full and uh that causes a horrible

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user experience for Bitcoin and down

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full blocks lead to high fees long waits

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and a horrible user experience anybody

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that's tried to use Bitcoin recently

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knows that the fees are crazy the waits

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for confirmation are crazy and just the

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overall user experience is horrible

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before I decided to make this video this

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morning I sent a Bitcoin transaction and

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I think it was a like seventy

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seventy-five dollars in fees I can pull

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it up here well will we do that but it's

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just a you know what an incredibly

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incredibly frustrating thing for someone

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that's been involved in Bitcoin you

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realize that for the entire history of

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Bitcoin up until the time the blocks

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became full you could send and receive

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any amount of money with anyone anywhere

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in the world and it was basically free

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you can't say that anymore now it's

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incredibly expensive so it was $59 to

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send us some bitcoins there earlier this

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morning there's a lot of substitute

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goods that are cheaper and easier to and

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faster than Bitcoin the only thing

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that's lacking for those other ones are

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there the giant network effect that

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Bitcoin has in that first mover

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advantage but if we have you know this

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horrible user experience that's going to

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result in fewer users fewer

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nodes lower adoption and a lower Bitcoin

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market cap and I hear so many of these

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Bitcoin core and block stream supporters

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saying oh look at Bitcoin it's at an

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all-time high in price yeah that's true

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but we have to stop and think for a

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minute if Bitcoin had continued to have

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a good user experience what would the

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price be today maybe instead of it being

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four thousand dollars per Bitcoin today

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we would already be at forty thousand

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dollars per Bitcoin today but instead

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Bitcoin has this horrible user

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experience people are starting to use

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aetherium and dash and alt coins and

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this and that whereas otherwise if

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Bitcoin had continued to have a good

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user experience they would have just

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continued to use Bitcoin and that brings

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us back to the economics if you get the

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economics wrong it doesn't matter how

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good of a programmer you are the

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economic code is incredibly important

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when it comes to Bitcoin and we have

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some quotes here from Bitcoin : and

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block stream supporters and here's Greg

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Maxwell the CTO block stream openly

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saying that he doesn't think that

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transaction fees mattering are failing

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it's a success and we can see right here

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when the transaction fees skyrocketed

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bitcoins total share the market cap of

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crypto coins plummeted and I provided

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the links to all of these quotes right

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in the bottom of these slides all of

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these slides this whole presentation is

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available over at Roger Viacom if you

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click on the slideshow link at the

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bottom you can download all these and

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this the name of this one is Pantera

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March 2017 and again we have Greg

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Maxwell saying that feed pressure is an

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intentional part of the system design

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and to the best of the current

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understanding essential for the system's

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long term survival

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so yes it's good and I'd like to point

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out once again that as soon as the fees

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skyrocketed on Bitcoin bitcoins total

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share of market cap plummeted and at the

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time I took this screenshot back in

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March it was at 60 something percent now

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it's below 50% so it's gone down even

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more so if you get the economics wrong

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it doesn't matter how good of a computer

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scientists you are or computer program

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or any of the other stuff you have to

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have the economics right or the system's

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not going to

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not going to work and again here we have

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a great Maxwell thing there's nothing

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wrong with full blocks but we can see

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incredibly clearly that there's

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something horribly horribly horribly

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wrong with full blocks as soon as the

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blocks became full bitcoins market share

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plummeted absolutely plummeted because

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the user experience becomes horrible

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with full blocks and again we have greg

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maxwell saying full blocks is the

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natural state of the system but that's

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absolutely ridiculous we can see here in

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the picture here we have the you know

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eight-year history of Bitcoin the blocks

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weren't full until very very recently so

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the full blocks certainly is not the

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natural state of the system and we

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should never ever ever have full blocks

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it creates this horrible user experience

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for for the users of Bitcoin and forces

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them to start using things other than

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Bitcoin

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again Greg Maxwell I'm not trying to

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pick on him any more than anybody else

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just there were plenty of quotes from

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him because he loves to post all over

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the internet and he says there's a can

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there's a consistent feedback log which

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is the required which is the required

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criteria for stability and again that's

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nonsense

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it wasn't until very recently that the

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blocks became full and the fee

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skyrocketed and that happened in sync

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with the Bitcoin share of the

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cryptically market space just plummeting

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so uh I'm sure Greg knows a lot of

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things about a lot of interesting topics

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the economic code of Bitcoin is not one

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of them Peter really he says we as a

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community should indeed let a fee market

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develop and rather sooner than later and

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again I'm sure Peters a really smart guy

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about a lot of things he has a PhD but

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the economic code that has made Bitcoin

278
00:19:05,000 --> 00:19:08,000
a success is not one of the things that

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00:19:08,000 --> 00:19:11,000
he's knowledgeable about and again we

280
00:19:11,000 --> 00:19:14,000
can see in the charts here that as soon

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00:19:14,000 --> 00:19:18,000
as the Bitcoin transaction fees

282
00:19:18,000 --> 00:19:24,000
skyrocketed Bitcoin share of the crypto

283
00:19:24,000 --> 00:19:30,000
coin market space plummeted we have

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00:19:30,000 --> 00:19:33,000
marked freedom balke I'm again I'm sure

285
00:19:33,000 --> 00:19:36,000
he's a smart guy about a lot of things

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00:19:36,000 --> 00:19:40,000
and very well-informed about a lot of

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00:19:40,000 --> 00:19:44,000
things the economic code that has made

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00:19:44,000 --> 00:19:49,000
Bitcoin a success is not one of him and

289
00:19:49,000 --> 00:19:53,000
he says slow confirmation high fees will

290
00:19:53,000 --> 00:19:57,000
be the norm in any state

291
00:19:57,000 --> 00:20:02,000
outcome no if we have slow confirmations

292
00:20:02,000 --> 00:20:06,000
and high fees we're going to see Bitcoin

293
00:20:06,000 --> 00:20:09,000
be replaced by you know the thousand one

294
00:20:09,000 --> 00:20:12,000
substitute goods that are out there

295
00:20:12,000 --> 00:20:16,000
waiting to replace Bitcoin and we can

296
00:20:16,000 --> 00:20:20,000
see that from the charts here that when

297
00:20:20,000 --> 00:20:23,000
the average confirmation time became

298
00:20:23,000 --> 00:20:27,000
really long because the full blocks

299
00:20:27,000 --> 00:20:34,000
Bitcoin share of the overall crypto coin

300
00:20:34,000 --> 00:20:40,000
market space has plummeted and Luke jr.

301
00:20:40,000 --> 00:20:44,000
reasonable block sizes currently range

302
00:20:44,000 --> 00:20:52,000
from five hundred and fifty kilobytes to

303
00:20:52,000 --> 00:20:59,000
one megabyte absolute nonsense I don't

304
00:20:59,000 --> 00:21:01,000
think there's too many same people in

305
00:21:01,000 --> 00:21:06,000
the world that think that that's a good

306
00:21:06,000 --> 00:21:11,000
idea it's going to be the end of Bitcoin

307
00:21:11,000 --> 00:21:14,000
if if we've restrict the block size and

308
00:21:14,000 --> 00:21:19,000
create this horrible user experience for

309
00:21:19,000 --> 00:21:24,000
all the users a Bitcoin and again Luke

310
00:21:24,000 --> 00:21:30,000
jr. says it's no longer possible to keep

311
00:21:30,000 --> 00:21:35,000
fees low that's just absolute nonsense

312
00:21:35,000 --> 00:21:38,000
the reason fees are so high is because

313
00:21:38,000 --> 00:21:41,000
Bitcoin had this giant network effect

314
00:21:41,000 --> 00:21:44,000
there were already a million apps for

315
00:21:44,000 --> 00:21:47,000
smartphones and computers and Bitcoin

316
00:21:47,000 --> 00:21:51,000
exchanges and Merchants that accept

317
00:21:51,000 --> 00:21:55,000
Bitcoin so there's definitely a lot of

318
00:21:55,000 --> 00:21:58,000
stickiness that prevents people to from

319
00:21:58,000 --> 00:22:02,000
wanting to switch from something from

320
00:22:02,000 --> 00:22:05,000
from Bitcoin to something else but if

321
00:22:05,000 --> 00:22:08,000
the fees get too high and the

322
00:22:08,000 --> 00:22:12,000
confirmation times get too long and the

323
00:22:12,000 --> 00:22:16,000
user experience gets too bad people are

324
00:22:16,000 --> 00:22:19,000
going to switch where you've seen that

325
00:22:19,000 --> 00:22:22,000
happen in a major way and that's

326
00:22:22,000 --> 00:22:25,000
specifically because the blocks were

327
00:22:25,000 --> 00:22:28,000
were allowed to become full because

328
00:22:28,000 --> 00:22:32,000
these Bitcoin quorum block stream guys

329
00:22:32,000 --> 00:22:36,000
in their you know ignorant of the

330
00:22:36,000 --> 00:22:40,000
economic code of Bitcoin thought that

331
00:22:40,000 --> 00:22:44,000
that would be a good idea and I wouldn't

332
00:22:44,000 --> 00:22:48,000
be so passionate about this if I didn't

333
00:22:48,000 --> 00:22:53,000
own a bunch of bitcoins I want to see

334
00:22:53,000 --> 00:22:59,000
Bitcoin do well and again we have Luke

335
00:22:59,000 --> 00:23:03,000
jr. saying just pay a $5 fee and it'll

336
00:23:03,000 --> 00:23:06,000
go through every time unless you're

337
00:23:06,000 --> 00:23:10,000
doing something stupid well maybe that

338
00:23:10,000 --> 00:23:14,000
was approximately true back in March

339
00:23:14,000 --> 00:23:20,000
when he said that but just this morning

340
00:23:20,000 --> 00:23:26,000
I paid $59 for my fee and I got included

341
00:23:26,000 --> 00:23:30,000
in the next block but I'll the the fee

342
00:23:30,000 --> 00:23:35,000
for that was 290 satoshis per byte so it

343
00:23:35,000 --> 00:23:38,000
wasn't a miscalculation on the fee

344
00:23:38,000 --> 00:23:42,000
that's about what the fees are it need

345
00:23:42,000 --> 00:23:46,000
to be at the moment so uh and I was

346
00:23:46,000 --> 00:23:48,000
sending those bitcoins that I sent this

347
00:23:48,000 --> 00:23:50,000
morning I was sending them to an

348
00:23:50,000 --> 00:23:52,000
exchange to trade them for something

349
00:23:52,000 --> 00:23:58,000
other

350
00:23:58,000 --> 00:24:05,000
than Bitcoin so thanks thanks Luke

351
00:24:05,000 --> 00:24:10,000
George team and another block stream in

352
00:24:10,000 --> 00:24:16,000
Bitcoin core participant in blocks

353
00:24:16,000 --> 00:24:23,000
employee he says higher fees may be just

354
00:24:23,000 --> 00:24:30,000
what is needed that's absolute nonsense

355
00:24:30,000 --> 00:24:34,000
no higher fees are kryptonite to the

356
00:24:34,000 --> 00:24:37,000
adoption of Bitcoin into the user base

357
00:24:37,000 --> 00:24:41,000
of Bitcoin and we can see that plain as

358
00:24:41,000 --> 00:24:44,000
day from these charts here when the fees

359
00:24:44,000 --> 00:24:47,000
became really high to use Bitcoin

360
00:24:47,000 --> 00:24:52,000
bitcoins percentage of the total market

361
00:24:52,000 --> 00:24:57,000
cap I of cryptocurrencies plummeted so

362
00:24:57,000 --> 00:25:01,000
no George higher fees is exactly what

363
00:25:01,000 --> 00:25:05,000
the system doesn't need Bitcoin is

364
00:25:05,000 --> 00:25:08,000
supposed to be frictionless or as close

365
00:25:08,000 --> 00:25:11,000
to frictionless as we can make it

366
00:25:11,000 --> 00:25:14,000
peer-to-peer electronic cash not some

367
00:25:14,000 --> 00:25:19,000
sort of settlement layer with high fees

368
00:25:19,000 --> 00:25:24,000
and slow confirmation times and again we

369
00:25:24,000 --> 00:25:27,000
have George here saying a confirmation

370
00:25:27,000 --> 00:25:32,000
times are fine for those who pay high

371
00:25:32,000 --> 00:25:36,000
fees know if the fees become high people

372
00:25:36,000 --> 00:25:38,000
are going to switch to using a

373
00:25:38,000 --> 00:25:42,000
cryptocurrency that has fast

374
00:25:42,000 --> 00:25:46,000
confirmation times and it's worth noting

375
00:25:46,000 --> 00:25:50,000
it may be a lot of people that are new

376
00:25:50,000 --> 00:25:55,000
to Bitcoin in the early days of Bitcoin

377
00:25:55,000 --> 00:25:59,000
the policy was first seen first safe

378
00:25:59,000 --> 00:26:02,000
that and that meant that when you

379
00:26:02,000 --> 00:26:05,000
broadcasted your transaction to the

380
00:26:05,000 --> 00:26:08,000
network once it had been broadcasted to

381
00:26:08,000 --> 00:26:12,000
the network you were pretty much good to

382
00:26:12,000 --> 00:26:16,000
go and people commonly accepted Bitcoin

383
00:26:16,000 --> 00:26:19,000
transactions for you know tens of

384
00:26:19,000 --> 00:26:23,000
thousands of dollars without waiting for

385
00:26:23,000 --> 00:26:27,000
a confirmation depending on the exact

386
00:26:27,000 --> 00:26:32,000
circumstances and you can make Bitcoin

387
00:26:32,000 --> 00:26:37,000
zero confirmation transactions very very

388
00:26:37,000 --> 00:26:40,000
very safe certainly not as safe as a

389
00:26:40,000 --> 00:26:44,000
transaction that's already had a

390
00:26:44,000 --> 00:26:47,000
confirmation or more but you can make

391
00:26:47,000 --> 00:26:50,000
them where they're safe enough to where

392
00:26:50,000 --> 00:26:53,000
most of the time people can accept them

393
00:26:53,000 --> 00:26:57,000
for most things in their life and it

394
00:26:57,000 --> 00:27:00,000
becomes good enough for for most things

395
00:27:00,000 --> 00:27:03,000
and that should be the goal whereas

396
00:27:03,000 --> 00:27:06,000
unfortunately Bitcoin core and block

397
00:27:06,000 --> 00:27:10,000
streams have intentionally undermined

398
00:27:10,000 --> 00:27:14,000
the safety of zero confirmation

399
00:27:14,000 --> 00:27:18,000
transactions and that degrades the user

400
00:27:18,000 --> 00:27:21,000
experience and that'll make people want

401
00:27:21,000 --> 00:27:24,000
to go and seek out coins that provide a

402
00:27:24,000 --> 00:27:27,000
better user experience and use those as

403
00:27:27,000 --> 00:27:30,000
a substitute for Bitcoin and that's

404
00:27:30,000 --> 00:27:34,000
exactly what we've seen happening over

405
00:27:34,000 --> 00:27:39,000
the last few months and again we have

406
00:27:39,000 --> 00:27:43,000
George saying Bitcoin needs a

407
00:27:43,000 --> 00:27:47,000
competitive fee market in the long run

408
00:27:47,000 --> 00:27:52,000
to sustain proof-of-work

409
00:27:52,000 --> 00:27:56,000
once the subsidies are gone I'm very

410
00:27:56,000 --> 00:28:00,000
happy that we have it now

411
00:28:00,000 --> 00:28:05,000
and I'm sympathetic to that argument

412
00:28:05,000 --> 00:28:10,000
that some day when there's no more block

413
00:28:10,000 --> 00:28:14,000
reward whatsoever we need some fees to

414
00:28:14,000 --> 00:28:18,000
incentivize the miners to see here the

415
00:28:18,000 --> 00:28:22,000
network but the block reward doesn't run

416
00:28:22,000 --> 00:28:26,000
out for another hundred years we have

417
00:28:26,000 --> 00:28:30,000
more than a hundred years until this

418
00:28:30,000 --> 00:28:34,000
becomes a problem and instead of waiting

419
00:28:34,000 --> 00:28:38,000
for a hundred years to solve this

420
00:28:38,000 --> 00:28:43,000
problem there cause they're causing a

421
00:28:43,000 --> 00:28:47,000
problem right now today they're causing

422
00:28:47,000 --> 00:28:51,000
a giant problem on the Bitcoin network

423
00:28:51,000 --> 00:28:55,000
today that's causing people to use

424
00:28:55,000 --> 00:28:59,000
things other than bitcoins so because of

425
00:28:59,000 --> 00:29:02,000
some problem that might exist more than

426
00:29:02,000 --> 00:29:05,000
a hundred years from now they're

427
00:29:05,000 --> 00:29:10,000
intentionally causing a problem today so

428
00:29:10,000 --> 00:29:14,000
that's a shows a clear lack of

429
00:29:14,000 --> 00:29:17,000
understanding of the economic code

430
00:29:17,000 --> 00:29:21,000
that's made Bitcoin a success today the

431
00:29:21,000 --> 00:29:25,000
Bitcoin economic code that made Bitcoin

432
00:29:25,000 --> 00:29:28,000
is a success is the exact same one that

433
00:29:28,000 --> 00:29:31,000
we had for the first eight years which

434
00:29:31,000 --> 00:29:35,000
was low fees and fast confirmation times

435
00:29:35,000 --> 00:29:39,000
for everybody and they're altering that

436
00:29:39,000 --> 00:29:44,000
economic code to disastrous results here

437
00:29:44,000 --> 00:29:49,000
and again we say that George in

438
00:29:49,000 --> 00:29:53,000
reference to Adam back the CEO block

439
00:29:53,000 --> 00:29:56,000
stirring he says I think Adam and I

440
00:29:56,000 --> 00:29:59,000
agree that hitting the limit wouldn't be

441
00:29:59,000 --> 00:30:03,000
bad but actually good for a young and

442
00:30:03,000 --> 00:30:07,000
immature market like Bitcoin fees this

443
00:30:07,000 --> 00:30:12,000
is absolute nonsense this is kryptonite

444
00:30:12,000 --> 00:30:16,000
to Bitcoin Bitcoin had an amazing growth

445
00:30:16,000 --> 00:30:19,000
rate the first eight years a Bitcoin

446
00:30:19,000 --> 00:30:21,000
when the fees were essentially you know

447
00:30:21,000 --> 00:30:24,000
basically nothing you were talking about

448
00:30:24,000 --> 00:30:28,000
a penny to use Bitcoin and Bitcoin went

449
00:30:28,000 --> 00:30:31,000
from nobody using it to somewhere around

450
00:30:31,000 --> 00:30:35,000
you know ten plus million users around

451
00:30:35,000 --> 00:30:39,000
the world huge amounts of venture

452
00:30:39,000 --> 00:30:44,000
capital coming in a huge adoption for

453
00:30:44,000 --> 00:30:48,000
merchants it was amazing and we have a

454
00:30:48,000 --> 00:30:51,000
eight year track record knowing that

455
00:30:51,000 --> 00:30:54,000
that economic code worked incredibly

456
00:30:54,000 --> 00:30:57,000
well to grow Bitcoin and get the coin

457
00:30:57,000 --> 00:31:01,000
used by more and more people around the

458
00:31:01,000 --> 00:31:06,000
world if you know something works and

459
00:31:06,000 --> 00:31:11,000
works incredibly well don't change it

460
00:31:11,000 --> 00:31:15,000
yet here's George claiming that he and

461
00:31:15,000 --> 00:31:19,000
Adam want to change this economic code

462
00:31:19,000 --> 00:31:23,000
that we already know works to some

463
00:31:23,000 --> 00:31:27,000
economic code that we don't know works

464
00:31:27,000 --> 00:31:31,000
and in fact we have a whole bunch of the

465
00:31:31,000 --> 00:31:34,000
evidence to say that it doesn't work and

466
00:31:34,000 --> 00:31:37,000
it drives people to use something other

467
00:31:37,000 --> 00:31:41,000
than Bitcoin so if something's not

468
00:31:41,000 --> 00:31:45,000
broken don't fix it yet that's exactly

469
00:31:45,000 --> 00:31:50,000
what these people are trying to do

470
00:31:50,000 --> 00:31:55,000
ah and here's a quote from vladimir van

471
00:31:55,000 --> 00:32:00,000
der Laan who would contribute a bitcoin

472
00:32:00,000 --> 00:32:05,000
core and he says a mounting fee pressure

473
00:32:05,000 --> 00:32:09,000
resulting in a true free market where

474
00:32:09,000 --> 00:32:13,000
transactions compete to get into Bloxx

475
00:32:13,000 --> 00:32:18,000
results an urgency to develop

476
00:32:18,000 --> 00:32:23,000
decentralized off chain solutions and we

477
00:32:23,000 --> 00:32:26,000
have these charts here showing that

478
00:32:26,000 --> 00:32:29,000
bitcoin when the fees became high and

479
00:32:29,000 --> 00:32:35,000
the see pressure was there Bitcoin share

480
00:32:35,000 --> 00:32:41,000
of market cap plummeted so yeah it made

481
00:32:41,000 --> 00:32:45,000
some people develop off chain solutions

482
00:32:45,000 --> 00:32:50,000
for Bitcoin meaning using Bitcoin banks

483
00:32:50,000 --> 00:32:55,000
like a you know coin basing Zappo and

484
00:32:55,000 --> 00:32:59,000
and and Bitcoin exchanges that hold the

485
00:32:59,000 --> 00:33:02,000
bitcoins for the users which is exactly

486
00:33:02,000 --> 00:33:05,000
what bitcoin was supposed to avoid we

487
00:33:05,000 --> 00:33:08,000
want everyone to hold their bitcoins

488
00:33:08,000 --> 00:33:12,000
themselves in a wall in which they

489
00:33:12,000 --> 00:33:16,000
control the keys and in addition to

490
00:33:16,000 --> 00:33:20,000
doing that it's pushed all sorts of

491
00:33:20,000 --> 00:33:24,000
people to start using things other than

492
00:33:24,000 --> 00:33:28,000
Bitcoin there's all sorts of companies

493
00:33:28,000 --> 00:33:32,000
that used to be Bitcoin only companies

494
00:33:32,000 --> 00:33:36,000
that have started adopting Bitcoin so

495
00:33:36,000 --> 00:33:40,000
coinbase used to be a Bitcoin only

496
00:33:40,000 --> 00:33:43,000
company and now they've integrated

497
00:33:43,000 --> 00:33:46,000
litecoin in the theorem and they've

498
00:33:46,000 --> 00:33:49,000
announced they're going to integrate

499
00:33:49,000 --> 00:33:54,000
Bitcoin cash we just saw earlier this

500
00:33:54,000 --> 00:33:59,000
week blockchain that info the number one

501
00:33:59,000 --> 00:34:02,000
Bitcoin wallet in the entire world

502
00:34:02,000 --> 00:34:06,000
that's responsible for more Bitcoin

503
00:34:06,000 --> 00:34:10,000
transactions than any other will than

504
00:34:10,000 --> 00:34:16,000
all other wallets combined just

505
00:34:16,000 --> 00:34:21,000
integrated aetherium I I'm the very

506
00:34:21,000 --> 00:34:24,000
first investor in the entire world and

507
00:34:24,000 --> 00:34:27,000
blockchain dot info I'm still the

508
00:34:27,000 --> 00:34:32,000
largest shareholder in the entire world

509
00:34:32,000 --> 00:34:38,000
in blockchain at that info almost more

510
00:34:38,000 --> 00:34:43,000
than all the other shareholders combined

511
00:34:43,000 --> 00:34:47,000
blockchain had no desire to integrate

512
00:34:47,000 --> 00:34:51,000
any other altcoins other than Bitcoin

513
00:34:51,000 --> 00:34:54,000
and the only reason that they integrated

514
00:34:54,000 --> 00:34:56,000
something other than Bitcoin at this

515
00:34:56,000 --> 00:34:59,000
point is because they were forced to

516
00:34:59,000 --> 00:35:03,000
because of the horrible user experience

517
00:35:03,000 --> 00:35:07,000
for for Bitcoin users on the Bitcoin

518
00:35:07,000 --> 00:35:11,000
network because of the full blocks and

519
00:35:11,000 --> 00:35:15,000
the high fees if that wasn't the case we

520
00:35:15,000 --> 00:35:19,000
would have been happy just going on with

521
00:35:19,000 --> 00:35:24,000
Bitcoin forever so we've seen coin based

522
00:35:24,000 --> 00:35:27,000
and grade altcoins bloodshed under info

523
00:35:27,000 --> 00:35:30,000
integrate altcoins

524
00:35:30,000 --> 00:35:35,000
all sorts of what used to be Bitcoin

525
00:35:35,000 --> 00:35:39,000
exchange exchanges have been now become

526
00:35:39,000 --> 00:35:44,000
cryptocurrency exchanges and are busy

527
00:35:44,000 --> 00:35:49,000
integrating altcoins that's because

528
00:35:49,000 --> 00:35:53,000
of the horrible user experience that was

529
00:35:53,000 --> 00:35:56,000
brought about on Bitcoin because of the

530
00:35:56,000 --> 00:36:00,000
full blocks and high fees and slow

531
00:36:00,000 --> 00:36:04,000
confirmation times that they bring its

532
00:36:04,000 --> 00:36:09,000
kryptonite to the future growth of

533
00:36:09,000 --> 00:36:14,000
Bitcoin and again we have vladimir here

534
00:36:14,000 --> 00:36:18,000
saying I'm afraid increasing the block

535
00:36:18,000 --> 00:36:23,000
size will kick this can down the road

536
00:36:23,000 --> 00:36:30,000
and let people and the large Bitcoin

537
00:36:30,000 --> 00:36:36,000
companies relax saying that it's going

538
00:36:36,000 --> 00:36:39,000
to let them relax that's exactly what we

539
00:36:39,000 --> 00:36:42,000
want people to using Bitcoin to be able

540
00:36:42,000 --> 00:36:45,000
to do we want them to be able to relax

541
00:36:45,000 --> 00:36:48,000
and have a wonderful user experience and

542
00:36:48,000 --> 00:36:52,000
have Bitcoin work beautifully for them

543
00:36:52,000 --> 00:36:56,000
that that's the name of the game when it

544
00:36:56,000 --> 00:36:59,000
comes to customer service and user

545
00:36:59,000 --> 00:37:02,000
adoption you want people to have a good

546
00:37:02,000 --> 00:37:05,000
experience and be able to relax and just

547
00:37:05,000 --> 00:37:08,000
be able to use Bitcoin and not worry

548
00:37:08,000 --> 00:37:11,000
about it and instead they're causing

549
00:37:11,000 --> 00:37:14,000
these intentional problems on the

550
00:37:14,000 --> 00:37:17,000
network and we see can see in these

551
00:37:17,000 --> 00:37:21,000
charts again as soon as we hit the one

552
00:37:21,000 --> 00:37:27,000
megabyte limit bitcoins percentage of

553
00:37:27,000 --> 00:37:32,000
the total market cap plummeted so what

554
00:37:32,000 --> 00:37:36,000
can we do about it

555
00:37:36,000 --> 00:37:40,000
so I made these slides six months ago

556
00:37:40,000 --> 00:37:44,000
but the answer is still basically the

557
00:37:44,000 --> 00:37:49,000
same right Bitcoin unlimited at the time

558
00:37:49,000 --> 00:37:54,000
with advocating bigger blocks lower fees

559
00:37:54,000 --> 00:37:58,000
and faster confirmations and it also

560
00:37:58,000 --> 00:38:01,000
enables layer to scaling so we get all

561
00:38:01,000 --> 00:38:05,000
the benefits from the Lightning Network

562
00:38:05,000 --> 00:38:10,000
and all these fancy layer to stuff plus

563
00:38:10,000 --> 00:38:13,000
lower fees and confirmations faster

564
00:38:13,000 --> 00:38:17,000
confirmations that's exactly what we

565
00:38:17,000 --> 00:38:21,000
want and Bitcoin cash has the exact same

566
00:38:21,000 --> 00:38:24,000
thing today we already have bigger

567
00:38:24,000 --> 00:38:27,000
blocks for seeing all the transactions

568
00:38:27,000 --> 00:38:31,000
being concluded right in the decks block

569
00:38:31,000 --> 00:38:34,000
the fees are some very very small

570
00:38:34,000 --> 00:38:38,000
fraction of what it is on the Bitcoin

571
00:38:38,000 --> 00:38:42,000
legacy system system and we can build

572
00:38:42,000 --> 00:38:46,000
all sorts of layer to stuff on top of

573
00:38:46,000 --> 00:38:52,000
this as well and Bitcoin unlimited and

574
00:38:52,000 --> 00:38:58,000
Bitcoin caches plan leads to better

575
00:38:58,000 --> 00:39:03,000
money right hard it has all these things

576
00:39:03,000 --> 00:39:07,000
including the ease to easy to transport

577
00:39:07,000 --> 00:39:11,000
part Bitcoin legacy is not easy to

578
00:39:11,000 --> 00:39:15,000
transport it's incredibly expensive and

579
00:39:15,000 --> 00:39:21,000
super slow to do that and that's not

580
00:39:21,000 --> 00:39:28,000
what good money is and again if we have

581
00:39:28,000 --> 00:39:34,000
better money better money leads to more

582
00:39:34,000 --> 00:39:40,000
users more nodes more adoption and more

583
00:39:40,000 --> 00:39:44,000
censorship resistance with a higher band

584
00:39:44,000 --> 00:39:48,000
all those things will lead to a higher

585
00:39:48,000 --> 00:39:51,000
market cap and a higher price

586
00:39:51,000 --> 00:39:54,000
and we're seeing that happen right

587
00:39:54,000 --> 00:39:59,000
before our eyes with Bitcoin cash today

588
00:39:59,000 --> 00:40:04,000
so many people are son they're slow and

589
00:40:04,000 --> 00:40:09,000
not easy to use and expensive to move

590
00:40:09,000 --> 00:40:13,000
bitcoins and buying Bitcoin cash and the

591
00:40:13,000 --> 00:40:17,000
miners are going to switch and whichever

592
00:40:17,000 --> 00:40:22,000
cryptocurrency has these characteristics

593
00:40:22,000 --> 00:40:28,000
as money is going to be the one that

594
00:40:28,000 --> 00:40:33,000
people use and Bitcoin had this giant

595
00:40:33,000 --> 00:40:36,000
giant just you know light your head

596
00:40:36,000 --> 00:40:40,000
start on all these other

597
00:40:40,000 --> 00:40:45,000
cryptocurrencies but in terms of network

598
00:40:45,000 --> 00:40:49,000
effect and user adoption and that's been

599
00:40:49,000 --> 00:40:53,000
absolutely squandered and destroyed and

600
00:40:53,000 --> 00:40:58,000
smashed by this idiotic full block -

601
00:40:58,000 --> 00:41:02,000
policy of block streaming core I don't

602
00:41:02,000 --> 00:41:05,000
think that they're bad people I think

603
00:41:05,000 --> 00:41:08,000
they just don't understand the economic

604
00:41:08,000 --> 00:41:11,000
code that's made Bitcoin a success and

605
00:41:11,000 --> 00:41:14,000
they've altered that to the detriment of

606
00:41:14,000 --> 00:41:17,000
Bitcoin and that's why you seen Bitcoin

607
00:41:17,000 --> 00:41:20,000
and now Bitcoin cash I'm sorry that's

608
00:41:20,000 --> 00:41:24,000
why we've seen etherium and now Bitcoin

609
00:41:24,000 --> 00:41:30,000
cash just coming up like leaps and

610
00:41:30,000 --> 00:41:36,000
bounds and if Bitcoin legacy continues

611
00:41:36,000 --> 00:41:41,000
to have this bad user experience 100% of

612
00:41:41,000 --> 00:41:46,000
its first mover advantage is going to be

613
00:41:46,000 --> 00:41:52,000
destroyed because of block streams full

614
00:41:52,000 --> 00:41:56,000
block and high few policy and that

615
00:41:56,000 --> 00:41:59,000
brings us to where we are today if

616
00:41:59,000 --> 00:42:03,000
you're wondering what crypto coins you

617
00:42:03,000 --> 00:42:07,000
should hold look at this chart here all

618
00:42:07,000 --> 00:42:11,000
of them are hard to counterfeit right

619
00:42:11,000 --> 00:42:15,000
look for the ones that are scarce and

620
00:42:15,000 --> 00:42:20,000
have a limited supply all of them are

621
00:42:20,000 --> 00:42:24,000
basically divisible on homogeneous is

622
00:42:24,000 --> 00:42:28,000
just another name for for privacy so

623
00:42:28,000 --> 00:42:32,000
Bitcoin in addition to the scaling issue

624
00:42:32,000 --> 00:42:36,000
has a really big problem with the

625
00:42:36,000 --> 00:42:40,000
homogeneous Nikoli needs to have more

626
00:42:40,000 --> 00:42:44,000
privacy built-in so look at crypto coins

627
00:42:44,000 --> 00:42:48,000
that have more privacy built in so you

628
00:42:48,000 --> 00:42:54,000
have a some top contenders there rzz

629
00:42:54,000 --> 00:42:59,000
cash debt - maybe the privacy is a

630
00:42:59,000 --> 00:43:03,000
little bit weaker but still seems to be

631
00:43:03,000 --> 00:43:08,000
better than Bitcoin Manero of course

632
00:43:08,000 --> 00:43:12,000
decline and I'm sure there's a number of

633
00:43:12,000 --> 00:43:16,000
others out there so keep an eye on those

634
00:43:16,000 --> 00:43:21,000
and that's another big problem with the

635
00:43:21,000 --> 00:43:26,000
full block and high a high feed policy

636
00:43:26,000 --> 00:43:30,000
implemented by block streaming core it

637
00:43:30,000 --> 00:43:33,000
makes it too expensive for people to use

638
00:43:33,000 --> 00:43:37,000
privacy tools like Bitcoin mixers and

639
00:43:37,000 --> 00:43:41,000
that damages the homogeneous nosov

640
00:43:41,000 --> 00:43:44,000
Bitcoin if you too expensive to use and

641
00:43:44,000 --> 00:43:46,000
make sure then people aren't going to

642
00:43:46,000 --> 00:43:49,000
use it anymore

643
00:43:49,000 --> 00:43:53,000
that damages bitcoins characteristics as

644
00:43:53,000 --> 00:43:57,000
money if you have you know big blocks

645
00:43:57,000 --> 00:44:00,000
where people can shuffle all their coins

646
00:44:00,000 --> 00:44:03,000
around that improves the privacy of

647
00:44:03,000 --> 00:44:07,000
Bitcoin and that makes Bitcoin better

648
00:44:07,000 --> 00:44:11,000
money again so they damaged this aspect

649
00:44:11,000 --> 00:44:16,000
of a Bitcoin as well with their full

650
00:44:16,000 --> 00:44:20,000
block and high C policy of course the

651
00:44:20,000 --> 00:44:23,000
coins and all these other cryptic lines

652
00:44:23,000 --> 00:44:27,000
are durable but easy to transport

653
00:44:27,000 --> 00:44:31,000
Bitcoin has had that incredibly damaged

654
00:44:31,000 --> 00:44:35,000
with this full block and high feed

655
00:44:35,000 --> 00:44:38,000
policy so uh anyhow if you're shopping

656
00:44:38,000 --> 00:44:42,000
for other crypto coins here's the

657
00:44:42,000 --> 00:44:46,000
characteristics to look for I would like

658
00:44:46,000 --> 00:44:50,000
Bitcoin to have all those in spades

659
00:44:50,000 --> 00:44:55,000
again Bitcoin cash looks like it has a

660
00:44:55,000 --> 00:45:00,000
pretty good chance of doing that again

661
00:45:00,000 --> 00:45:04,000
but it has nowhere near the market

662
00:45:04,000 --> 00:45:07,000
effect of Bitcoin there's no easy-to-use

663
00:45:07,000 --> 00:45:11,000
smartphone apps there's pretty good

664
00:45:11,000 --> 00:45:15,000
adoption from exchanges there's minimal

665
00:45:15,000 --> 00:45:19,000
adoption from merchant service providers

666
00:45:19,000 --> 00:45:23,000
at this point so it's a bit of a chicken

667
00:45:23,000 --> 00:45:28,000
and egg problem but every single Bitcoin

668
00:45:28,000 --> 00:45:32,000
holder is also a Bitcoin cash holder so

669
00:45:32,000 --> 00:45:36,000
a lot of these people are going to be

670
00:45:36,000 --> 00:45:39,000
interested especially when when though

671
00:45:39,000 --> 00:45:42,000
we're seeing the price go crazy for it

672
00:45:42,000 --> 00:45:45,000
we should check this the price again

673
00:45:45,000 --> 00:45:49,000
since I didn't check from the time I

674
00:45:49,000 --> 00:45:54,000
started this little screencast but it's

675
00:45:54,000 --> 00:45:59,000
just been going crazy it was a less than

676
00:45:59,000 --> 00:46:05,000
it was about $300 48 hours ago and now

677
00:46:05,000 --> 00:46:11,000
it's up around $1000 at the moment and

678
00:46:11,000 --> 00:46:15,000
yeah what what an exciting thing so

679
00:46:15,000 --> 00:46:19,000
anyhow I don't need this to go too long

680
00:46:19,000 --> 00:46:23,000
we're almost up to a half an hour but

681
00:46:23,000 --> 00:46:27,000
better money leads to all these things

682
00:46:27,000 --> 00:46:31,000
that we want and it's worth pointing out

683
00:46:31,000 --> 00:46:36,000
the two that the goal is not

684
00:46:36,000 --> 00:46:41,000
decentralization the goal is censorship

685
00:46:41,000 --> 00:46:46,000
resistance and we don't need an infinite

686
00:46:46,000 --> 00:46:51,000
amount of decentralization but we want

687
00:46:51,000 --> 00:46:54,000
as much censorship resistance as we

688
00:46:54,000 --> 00:46:59,000
possibly can have and we just use the

689
00:46:59,000 --> 00:47:03,000
decentralization as the tool to achieve

690
00:47:03,000 --> 00:47:06,000
that censorship resistance so the

691
00:47:06,000 --> 00:47:10,000
decentralization in and of itself is not

692
00:47:10,000 --> 00:47:14,000
the goal it's simply the tool we use to

693
00:47:14,000 --> 00:47:18,000
achieve that censorship resistance and

694
00:47:18,000 --> 00:47:22,000
we just need enough decentralization to

695
00:47:22,000 --> 00:47:25,000
achieve that censorship resistance so

696
00:47:25,000 --> 00:47:29,000
that's me for anybody who is watching

697
00:47:29,000 --> 00:47:32,000
this video who doesn't know who I am I'm

698
00:47:32,000 --> 00:47:35,000
the very first person in the entire

699
00:47:35,000 --> 00:47:38,000
world to start investing in Bitcoin

700
00:47:38,000 --> 00:47:43,000
startups I've been involved in Bitcoin

701
00:47:43,000 --> 00:47:46,000
since February of 2011 I was the first

702
00:47:46,000 --> 00:47:49,000
invest

703
00:47:49,000 --> 00:47:54,000
blocking that info I was in the earliest

704
00:47:54,000 --> 00:47:58,000
problem for 4-bit pay and ripple and

705
00:47:58,000 --> 00:48:01,000
Percy oh and Kraken and shape-shift and

706
00:48:01,000 --> 00:48:04,000
a whole bunch of other companies that

707
00:48:04,000 --> 00:48:07,000
are no longer around as well and I

708
00:48:07,000 --> 00:48:09,000
started investing the decline system

709
00:48:09,000 --> 00:48:12,000
years before a traditional venture

710
00:48:12,000 --> 00:48:16,000
capital started getting involved I got

711
00:48:16,000 --> 00:48:20,000
involved because I want to see Bitcoin

712
00:48:20,000 --> 00:48:23,000
and if it's not Bitcoin I'll be a bit

713
00:48:23,000 --> 00:48:26,000
sad but I'm just fine if it's another

714
00:48:26,000 --> 00:48:31,000
cryptocurrency but I want to see Bitcoin

715
00:48:31,000 --> 00:48:35,000
or cryptocurrencies replace every other

716
00:48:35,000 --> 00:48:38,000
government issued currency in the world

717
00:48:38,000 --> 00:48:41,000
I want to see it replaced a dollar the

718
00:48:41,000 --> 00:48:44,000
euro in the end and put every single

719
00:48:44,000 --> 00:48:48,000
human being on the planet on the same

720
00:48:48,000 --> 00:48:51,000
foothold on the same footing for being

721
00:48:51,000 --> 00:48:53,000
able to send and receive money with

722
00:48:53,000 --> 00:48:56,000
anyone else anywhere in the world

723
00:48:56,000 --> 00:49:00,000
without requiring permission from any

724
00:49:00,000 --> 00:49:04,000
politician or government or anybody for

725
00:49:04,000 --> 00:49:08,000
that matter because that's what it's all

726
00:49:08,000 --> 00:49:12,000
about we're all human beings we all have

727
00:49:12,000 --> 00:49:15,000
the same natural rights we should all be

728
00:49:15,000 --> 00:49:17,000
able to transact and send and receive

729
00:49:17,000 --> 00:49:20,000
money with each other without having to

730
00:49:20,000 --> 00:49:24,000
get the permission of strangers living

731
00:49:24,000 --> 00:49:27,000
in far-off lands that's why I got

732
00:49:27,000 --> 00:49:31,000
involved with Bitcoin that's my goal

733
00:49:31,000 --> 00:49:35,000
today I'm the CEO Bitcoin comm if you

734
00:49:35,000 --> 00:49:41,000
want to learn more about Bitcoin go to

735
00:49:41,000 --> 00:49:48,000
bitcoin calm unlike Bitcoin torger

736
00:49:48,000 --> 00:49:52,000
bitcoin org or our Bitcoin will allow

737
00:49:52,000 --> 00:49:55,000
you to go and say anything you want on

738
00:49:55,000 --> 00:49:59,000
our forums we're not going to delete

739
00:49:59,000 --> 00:50:03,000
your posts or since your your your

740
00:50:03,000 --> 00:50:07,000
position just because of a you might

741
00:50:07,000 --> 00:50:14,000
disagree with somebody on how the clinch

742
00:50:14,000 --> 00:50:21,000
should scale but anyhow that's it thank

743
00:50:21,000 --> 00:50:25,000
you guys for listening I'll probably do

744
00:50:25,000 --> 00:50:29,000
an AMA at some point in the very near

745
00:50:29,000 --> 00:50:34,000
future on our BTC because they support

746
00:50:34,000 --> 00:50:39,000
free speech there so look for my AMA

747
00:50:39,000 --> 00:50:44,000
coming soon - thank you guys all for

748
00:50:44,000 --> 00:50:50,000
supporting this fundamentally

749
00:50:50,000 --> 00:50:56,000
world-changing technology to learn more

750
00:50:56,000 --> 00:50:59,000
Bitcoin comm thank you