Placeholder Image

Subtitles section Play video

  • tell me about, you know, Bitcoin.

  • Um, mm my good friend max Keiser is uh, you know, his name is max and he is a maximalist for him.

  • It is Bitcoin or nothing.

  • And uh, you know, I respect MAx and Michael Sailor on the show and of course Michael Saylor is choosing to own Bitcoin for his public company balance sheet.

  • I think that's a really smart move.

  • He said brian, I like Bitcoin because it has low aspirations, it's not trying to be something else.

  • It's also massively decentralized and Jeff booth has a lot of good things to say about it.

  • Um, how do you feel about other cryptocurrencies and how do you feel about the ethereum and the other ecosystems?

  • Obviously everything is growing super fast.

  • Um, what is it 2.85 trillion market cap now across all the coins?

  • Um, there's 12 14,000 protocols now and there's obviously something coming at a very shocking rate with very little information but how do you look at that from an investor analysis?

  • So a couple of ways.

  • One is that I, I separate pick one from the others in the sense that Bitcoin is the one that I think is decentralized enough to call sound money in the sense that there's no one who can change the monetary policy of it.

  • It's kind of designed in such a way.

  • Uh, I guess if you go back for a second for trade offs, right?

  • When you build a Blockchain, what essentially you're doing is you're making an inefficient database.

  • Um, and it's a database that has the unique capability that can be stored in anyone's personal device around the world.

  • And that comes with advantages, mainly decentralization, but it also comes with tons of trade offs, because if you're gonna have thousands or millions of people store your database, it has to be tiny, it has to be low bandwidth.

  • And so that's what it's really small and tight database and the more you try to add features to that or add throughput to that, you're sacrificing some degree of decentralization.

  • Um, and so there's that there's that tradeoff there.

  • So Bitcoin is built like a cockroach in that space.

  • It's basically fully optimized for as much decentralization as possible and is willing to sacrifice other variables and that's what gives it uh, that sound money quality back in 2017 and the block size war, you know, 80% of the hash rate, the largest maker of Bitcoin miners, which, which was almost a monopoly.

  • Um, the largest exchanges and custodians.

  • Uh, and some of the earlier developers all teamed up and they wanted to change Bitcoins block size and they couldn't do it.

  • Um and so it was basically because of that distributed no network, because that decentralization, it's almost impossible to change without utterly massive consensus to change something.

  • And even then when it changes with, for example, its upcoming taproot, uh, soft fork, it changes through soft fork, you know, rather than hard forks.

  • Um, and so Bitcoin in that sense is something that I consider to be sound money at this point.

  • Whereas when you go into other Kryptos they I think it's it's one on one hand if they're fully transparent with what they're doing um and and they're basically acknowledging the trade offs that they're making, there's certainly experimentation to be had here.

  • Um And even for example some of the things started on a theorem end up going onto onto Bitcoin defi as well.

  • So there's innovation in the space, the challenge that we run into those other projects is that by expanding complexity on the base layer they sacrifice some degree of decentralization and there's a spectrum there and so we say ethereum obviously you put smart contracts into the base layer.

  • Um So one issues so you have a lot more features, you can do a lot more with it, you can do defy can use stable coins, you can do N.

  • F.

  • T.

  • S.

  • Whereas Bitcoin can only do that with additional layers put on top of it.

  • So that's a whole different design philosophy.

  • Um Whereas with the theory we can do on the base layer, the downside is so in order to do all these changes and they kind of their culture is based around changes and in an iteration and improvement they put for example difficulty bombs and the code uh And so they changed through hard forks rather than soft forks.

  • So it kind of takes away a lot of the power of the nodes and in addition the block size grows so much faster than Bitcoin's does where in a few years you're gonna need multiple terabytes of data if you want to build a validate the entire Blockchain um and so and it's also it's hard to sink it and then they're going to go to proof of stake and and and just you know just change that system and so there's more centralization risk there and then we get into another project if you so that that's kind of if you see the Bitcoins and ethereum argue with each other, it's often about decentralization and risk and things like that then if you get into something solana where you have a proof of stake, smart contract chain, it has a lot more throughput than ethereum, so a lot cheaper fees um but it comes with even more centralization, so you often see the theory and criticize solana for being too too centralized and they, you know, as an example of how centralized Alana is they still do manual slashing.

  • So proof of stake works on slashing, meaning that you know, if if a proof of work minor verifies the wrong Blockchain, their punishment is simply that they mined blocks that don't make it into the main chain, therefore they wasted real world resources um that's their own punishment whereas in a proof of stake because you're not using real resources at to validate your using your tokens, you have to get your part, some of your tokens taken away if you vote for the wrong chain.

  • Um and Selena still has manual slashing.

  • So it's not even a fully automated Blockchain, developers still essentially have complete control over at the end of the day and we saw, you know, a couple months ago it went down for 17 hours, the entire Blockchain and had to be manually, they had to like talk and manually we started the validators.

  • Um and so there's a spectrum of decentralization there.

  • And so I put Bitcoin in one bucket and all the others are kind of this experimental tech equities.

  • Um and so it's two very different types of investments.

  • It's kind of like comparing, you know, uh like a startup company with with no profit yet, that's it's kind of getting an idea of the ground versus an established business, right?

  • So it's two very different ways of looking at it.

  • But then another thing I do is I separate price action from fundamentals.

  • So for example, in my research service, I would talk about these issues with ethereum but then say, I think the next year it's going a lot higher.

  • Right?

  • So, and I would talk about some of the supply squeezes that are happening with it um basically once it broke over 1400 back in like january february, that's when I became quite bullish on ethereum along with Bitcoin in my in my service in terms of price and said, you know, unlike Bitcoin, I don't have a long term view on this necessarily.

  • I don't know if this is going to be the winner of the smart smart contract change, here's all the centralization risks, but all else being equal, there's a really attractive supply squeeze here is probably going higher.

  • And I did the same thing for Selena.

  • So for example, you know, 2.5 months ago I said Selena has a good probability of flipping card a no.

  • And back then Cardinal was 90 billion market cap in Solano was 40 billion.

  • Uh you know, a couple, you know, less than a week ago they did flip at least at least, you know, at least for the moment.

tell me about, you know, Bitcoin.

Subtitles and vocabulary

Operation of videos Adjust the video here to display the subtitles

B1 ethereum blockchain database proof stake slashing

Bitcoin or Bust

  • 0 0
    林宜悉 posted on 2021/12/06
Video vocabulary