Subtitles start after the intro. in this video i want to explain to you what
bitcoin is and why it matters from an economical technological and ethical standpoint note that
almost none of what i present are ideas formed by myself it's mostly what i picked up from
books countless podcasts and articles that i read throughout the years a quick disclaimer
before we start this video is long and still very information dense if you feel
like you don't understand something fully feel free to pause and think
for yourself before continuing the video description is absolutely packed with
sources for further reading and watching i want to start with a quote by vijay boyapati
he is the author of the bullish case for bitcoin the ramifications of the creation of bitcoin
are so profound for both economics and computer science that nakamoto should rightly be the
first person to qualify for both a nobel prize in economics and the touring award this is the
thesis that i want to reinforce in this video the first part of this video will cover most
of the why by looking at bitcoin's economical properties what is money and its history inflation
and deflation bitcoin's value proposition in that context velocity of money and a few
foundations of the austrian school of economics the second part is about how how is bitcoin
actually able to fulfill its value proposition we will look at it from more of a computer science
perspective here however i try to keep it simple yet complete we will look at the byzantine's
generals problem or double spending problem the buzzwords blockchain and bitcoin mining as well
as cryptography and the proof-of-work algorithm to finish off the video i'll end with a section
where i'll try to explain more of what's happening in the landscape where i think bitcoin
will be going and end with some final notes to understand what bitcoin is there is no way
around its economical properties and the history of money bitcoin can look quite complex and even
the anonymous creator satoshi nakamoto knew that writing a description for this thing for a general
audience is bloody hard there's nothing to relate it to so to understand why it's not just a weird
digital token used by nerds we need to do some sort of history lesson look where money came
from and how it changed through time when we think of money today we think of dollar bills or
credit cards while those mediums of exchange were not existent in the early stages of society
the properties of money have actually been pretty consistent throughout history initially
money was not necessary the community was small and people bothered this is by the way the key
differentiator between humans and every other animal we understood that everyone is better
off through division of labor and free trade with the growth of the community the accounting
of barter deals and taxation became too complex so money was invented which in its essence is a good
that's widely accepted as a medium of exchange i buy something from you and give you money you
use that money in a future transaction to buy another good from someone else so you can actually
store value inside of money to purchase something from someone else in the future everything could
be used as money as long as we all decide to use and accept it as our medium of exchange but not
every money is good money some early examples of better money were seashells animal teeth and beads
these stay the same over longer periods of time so they have the property of durability staying
with the example of shells they are also portable so you can bring them with you to buy what you
need however the problem with shells is they are not scarce when you have a boat you can ride to
a beach and pick up a ton of shells you inflate the supply of shells in the community which makes
them less precious so they lose purchasing power to make this more engaging here's what i just said
in rap form she sells seashells on a seashore but the value of these shells will fall due to the
laws of supply and demand no one wants to buy shells because there's loads on the sand step one
must create a sense of scarcity shelter will sound much better if the people think they're rare
you see bear with me take as many shows as you can find and hide them on an island stockpile i'm
high until they're rather than a diamond stat too so scarcity is key for any sort of store of
value i mean think about first edition cards from trading card games they rise in value
because there's a very limited supply of them they will never be printed again because they are
first additions so that's why they go up in value throughout history humans continued to move to
better monies that are more scarce divisible portable and durable the final frontier
were precious metals and finally gold think about why gold is a great store of value
its scarce divisible through melting portable and really durable but we didn't stop at gold
next up paper money which is even more portable it appears to be the superior money at first
sight initially all paper money was back with a one-to-one ratio by gold so a 10 bill equals
a 10 gold coin so you could change paper money back and forth with the actual gold this
is known as the gold standard or la belle epoque in which humanity and technological
advancement flourished however greed and the concentration of power changed things banks
started to print more money than they have gold this is troublesome because when too many people
want to change their paper money back into gold the bank doesn't have enough gold to serve
its customers which is exactly what happened because the us for the second time had committed
a fraud and created more receipts for gold than there was gold it's it's that simple then finally
the markets sort of sense this and nixon was forced to take us off the gold standard because if
he had paid out gold until it got to zero once we couldn't pay on some of those dollars the entire
worldwide monetary system would have collapsed in 1971 the u.s government made the decision that
no paper money can be exchanged back into gold that decision combined with the establishment of
central banks led us to the fiat standard which is still in place today the dollar and other
currencies are not backed by gold anymore in fact they are backed by nothing besides our trust
in the government and on august 15 1971 all the world's currencies became fiat currency i don't
know why the rest of the world didn't rush out and hang him but but they didn't they just all
went along with this so since 1971 governments have a monopoly on money creation since they
can print money and we will explore why that is unethical and also uneconomical ending the gold
standard resulted in an explosion of public debt growing income inequality currency
crashes and of course inflation there is actually a website with the very fitting
name what the [ __ ] happened in 1971.com with lots of data and graphs check it out there are two
problems here that can best be explained at once one is inflation and the other one is the
monopoly of who controls the inflation inflation means expanding the money supply and
thereby the devaluation of money because it becomes less scarce inflation by authorities
is not a new phenomenon it happened with the debasement of metal coins when kings added
less precious metals like tin to the gold coin to put the rest of the gold into their own
pockets and it still happens today through printing of paper money paper money clearly lacks
scarcity which makes it useless as a store of value if it's not backed by something like gold
printing of money first leads to mild inflation which always leads to outright inflation
as austrian economist friedrich hayek noted since 1971 almost 50 years have passed in this
experiment of easy money printing and worldwide fiat currencies when you look at the graph of
the money supply of the us dollar for example it doesn't look like the experiment
we live in will last another 50 years a paradigm shift to a new monetary
policy will inevitably occur bitcoin is one idea here but we will look at
a more governmental solution here later on but now here's an interesting thing the central
banks of the world printed trillions worth of dollars during the pandemic and yet we don't feel
any inflationary effects prices didn't go up so far the reason for that is that the pandemic is
a deflationary force people cut down on expenses and save their money because they are uncertain
and scared of the future this is displayed by the velocity of money which is really low right
now the velocity of money displays how often it moves from one entity to another a good economy
has a high velocity of money as you can see the velocity of money is not going upwards even though
the supply of money is getting increasingly larger there is a very dangerous potential cycle playing
out right now because when the pandemic is over and the economy is great again at some point
the velocity of money will pick up as people don't cut down on expenses anymore the
money supply doesn't suddenly vanish so at some point there is a way higher
supply of money circulating on the market this is the real inflationary impact even
economists that believe in controlling the money supply know that a contraction of the
money supply is necessary after expanding it the problem is the contraction never happens
when you look at history inflating more to fight deflationary forces is the same as taking more
drugs to stay on your high until you're overdosing governments having a monopoly of money
production is deficient and history has shown that governments will inevitably succumb
to the temptation of inflating the money supply austrian economics which builds the
foundations for bitcoin is even clearer here once there is enough supply of a metal to
permit the market to choose it as money no increase in supply can improve its monetary
function an increase in money supply will then merely dilute the effectiveness of each ounce
of the money without helping the economy inflation being a fraudulent invasion of
property could not take place on the free market in some freedom can run a monetary system as
superbly as it runs the rest of the economy the endgame of exponential growth of the money
supply can also head us into hyperinflation which is not a pretty sight as witnessed countless
times throughout history around the world and to be frank none of the thousands of fiat
currencies that exist throughout history have survived okay so to recap inflation reduces
the money's capacity as a store of value that's not all though inflation is a great
accelerator for inequality through something called the cantillon effect it's a wealth shift
from the lower and middle class to the upper class the arithmetic makes it plain
that inflation is a far more devastating tax than anything that
has been enacted by our legislators the cantillon effect works as follows banks and
financial institutions receive newly printed money first that means they can buy services and assets
while the prices are still lower and not affected by the new inflation because the new money did
not circulate on the market so far after that it benefits ceos and other top tier shareholders
through higher market caps of companies at the end of the road are the middle and lower
class that don't benefit from inflation at all but just have to cope with higher consumer prices paper money is also not natural money that
came into use voluntarily through its intrinsic superiority because in many regards it's simply
not whenever and wherever paper money came into being it existed only because of the courts and
the police suppressed the natural alternatives remember when i said that banks were committing
fraud when they gave out more paper money than they have gold in the vault well actually this
is common practice today it's called fractional reserve banking governments give banks the license
to essentially cheat by letting them hand out more money than they actually have when people suddenly
do a run on the banks and want their cash like in the 2008 financial crisis the bank fails and gets
bailed out by the government through more money printing this is an incredibly unfair advantage
and one of the reasons for why capitalism has got a bad reputation what do you say to the people
that don't believe that there is such a thing of ethical as ethical or compassionate capitalism
and there's many people today that are espousing marxism and they're espousing some sort of
a socialist society where they believe that capitalism has screwed people over and eliminated
the middle class and there are absolute problems with capitalism i think monopolies are a
problem i think that crony capitalism is a problem with the government you know kind of
gets in bed with them and sort of forces things uh i think the bankers have really you know
raped society and the rest of us are suffering for it yeah they've essentially taken huge risks
where they privatize the gains and they socialize the losses so when it fails they basically
get bailed out and bankrupt everybody else the only long-term solution out of the money
printing mass is denationalization of money to make it a free market not controlled by a
government or any company or anyone else this is a task that was pretty much not possible for a long
time how did money come about and what's happened today to to mess up things so much see the great
trouble is the money wasn't allowed to develop further after two or three hundred years of
coins all governments put their hands and stopped any further developments we are not allowed to
experiment on it money has been improved money has rather become worse in the course of time
government said it must not develop any further and what we have had since in development where
matters of government inventions mostly around mostly abuses of money and i have come to the
position of asking has monetary policy ever done any good i don't think it has i think it has
done only harm and that's why i am now pleading for what i've called denationalization of
money but i don't believe that we should ever have a good money again before we take
the thing out of the hands of government because we can't take them violently
out of the hands of government all we can do is by some sly roundabout way
introduce something they can't stop that was austrian economist friedrich hayek
pretty much predicting bitcoin in 1984 an open public permissionless borderless neutral decentralized censorship-resistant
alternative to central banking the best form of money in history has been
gold so bitcoin's natural rival is not the us dollar or any other fiat currency but gold
instead let's compare the two and see why the necessary characteristics of money are plenty but
the most important ones are scarcity divisibility portability durability and recognizability
yes gold is scarce but bitcoin is actually programmatically scarce there will never be more
than 21 million bitcoins this rule is part of the code and no one can change it the distribution
rate of bitcoin is also fixed you can look up how many bitcoins will exist at any date in the
future it's hard to argue against mathematics with gold however you only have a vague idea of
how big its supply is and with fiat currencies like the dollar well you don't know at all
how much money will be printed next year and you also have no vote on this decision
either second characteristic divisibility gold is divisible through melting bitcoin is
really divisible one bitcoin equals 100 million satoshis which is the smallest unit just like
hundred pennies make up for one dollar gold is also sort of portable which is good but only in
small sizes it's very hard to move like millions worth of gold this would be very costly because of
the security that would be necessary you can send millions worth of bitcoins to the other end of
the world pretty much instantly for a few dollars in fact bitcoin is so portable that if you
remember your seed phrase which is something like your password to your bitcoins you don't
need anything you can just go wherever you want you have it in your hat you just need an internet
connection there and you have access to your funds gold is also very durable it gets slightly
compromised through use as a currency but has proven its durability throughout history bitcoin
is not prone to physical harm as its digital so it cannot be destroyed but it can be lost if you own
bitcoin and lose access to your private key your coins are lost forever a clear downside on gold
is that it's not that easily recognizable you either need an expert that you then need to trust
or some sort of special equipment to find out if your gold really is 100% gold and not some sort
of mixture bitcoin is verifiable the system works without trust we will see how the system works
in the next section the only real argument that speaks for gold is that it's proven throughout
history however in an increasingly digital world i don't believe that kids born today want to
deal with a metal when they become financially responsible so the winner bitcoin i could go way
deeper here into the economics of bitcoin but i don't want to make this video like an hour long
and there's a lot of interesting things like it's underlying game theoretics psychological elements
like us having the desire of scarce collectibles or laying out how functions like lending work with
a disinflationary currency but this is outside of the scope for this video so let's continue
with the technological aspects of bitcoin first things first yes bitcoin is complex but
actually many things are and you don't really need to understand them fully to use them i mean
you don't need to understand how the TCP/IP stack or the hypertext transfer protocol works in order
to use the internet how the banking system works in order to use it that said getting the technical
premises of bitcoin gives you the confidence that it actually works and it underlines the
understanding of the different narratives like censorship resistance decentralization etc
the technical details are very hard to explain in a few minutes i'm going to be honest here
i try my best but also check out the resources in the description in its essence bitcoin is the
solution to the digital double spending problem or byzantine's generals problem one of the greatest
attributes of digital files is that they are infinitely copyable at pretty much zero cost if
i have a funny video on my phone that i want to share with you i can send it to you and you have
the video as well i don't lose it on my phone but this would make a currency completely
useless if you send 10 digital dollars to my phone but keep them on yours as well
well this is known as double spending to solve double spending you usually would need
a central authority which is a bank in most cases that holds all accounts in a central database and
whenever someone sends you 10 to your bank account you trust the bank that they subtract the 10
from the sender and add them to your bank account bitcoin solved this problem without a third party
that you need to trust instead of a centralized database with bitcoin you have a decentralized
database that everyone can access and verify it's not stored in one place it's stored
all over the world on everyone's devices who decide they want to store it so instead of
a bank there is not a server and several clients that interact with the server instead the bitcoin
protocol runs on a flat network with no hierarchy everyone is seen as peers a peer-to-peer network
that no one can turn off because there is no central point no single point of failure that
you can shut down peers can enter and leave the network whenever they want without permission
from anyone bitcoin is not a company it's a stack of protocols just like the internet is a stake of
protocols bitcoin uses blockchain technology which became quite a buzzword a few years ago it's
a distributed ledger or database that everyone can access with the key feature that everyone can
trust the state of the database or output of the database without the need to trust anyone in the
network so the blockchain is integral to bitcoin's value proposition no third party like a bank is
necessary to see that all transactions are valid okay so blockchain why block and white chain the
blockchain consists of blocks that are linked one after another each block contains a list
of transactions a block hash a random number and the hash of the previous block which acts
as a reference of the order of the blocks this means that bitcoin actually doesn't exist
physically and also not on anyone's device bitcoin as a currency is the transaction history
recorded in the blockchain that everyone is saving because with the transaction history you can
always retrace which account or in bitcoin terms which address owns how many bitcoins
we need to look at the blocks themselves and understand what's happening here what is a
hash and why do they contain a random number but before that let's reason from the ground up
and follow the course of a single transaction so how do transactions get added to
this ledger called the blockchain a transaction consists of three elements the
address of the sender the address of the receiver and the amount these weird looking strings of
characters and numbers are bitcoin addresses they are 256 bit numbers with some format restrictions
they are 2 to the power of 160 possible addresses this is a huge number this is done so that the
chance you create an address that someone already uses is near zero every bitcoin address has
a public key and a private key the public key is what's displayed here you can compare it to an
email address everyone who has your email address can send you an email so everyone who has your
public key can send you bitcoin but just by having your email address it doesn't mean the person can
send from this email address or read your emails they can only send to the address the same
applies to bitcoin to send transactions you need the private key of the address which acts like a
password only difference private keys are way more secure than your email password but the idea is
that it should be completely infeasible to find a valid signature if you don't know the secret key
specifically there's no strategy better than just guessing and checking random signatures which you
can check using the public key that everyone knows now think about how many signatures there are with
a length of 256 bits that's 2 to the power of 256. this is a stupidly large number to call it
astronomically large would be giving way too much credit to astronomy so back to our transaction to
confirm it the sender needs to sign it with his private key the great part here is that everyone
else can verify that the transaction is valid by seeing the signature and the public key the
verification checks if the signature was used by the private key that belongs to the public key
asymmetric cryptography makes this verification possible without knowing the private key now that
all parameters for the transactions are filled and it's signed by the sender it's time to broadcast
it to the network the network participants verify if the transaction is correct and add them to the
memory pool here all transactions are stored that didn't get bundled into blocks yet and added to
the blockchain at this point the transaction is already part of the bitcoin network but it's
unconfirmed the next step is called bitcoin mining bitcoin miners take transactions out
of the memory pool and put them into a block as we learn the block contains the list of
transactions the hash of the previous block a new hash and a random number one of the most
important aspects of bitcoin comes into place here the sha 256 hash function or secure hash
algorithm what does it do it takes data like a string of text or file and outputs a unique
256-bit number called a hash it was developed by the nsa and is widely used for security miners
take the transactions of the block and the hash of the previous block and apply the hash function
to get the new hash of the current block there is one limitation though they need to find a hash
with a predefined number of zeros at the beginning this is the algorithmic problem they need to
solve to find that special hash they add a random number and increment that number over and
over and over again until the solution was found the finder of the correct solution gets the
block reward which is newly created bitcoin that flows into his account this is the incentive
to take part in the process of guessing numbers which gives the whole process the name mining
because similar with gold mining you earn a reward once it was found the block is complete and
gets added to the blockchain at this point every other miner needs to discard the block
it's currently working on and start again here another core principle comes into play
called proof of work it takes work to find the right number by guessing but it's very easy to
verify if it is the correct number once it was found if someone cheats and broadcasts the wrong
solution everyone else will be able to see that it's wrong and don't accept it another important
question who defines with how many zeros the hash needs to start and why does it matter this is
defined by the protocol and adjusted dynamically in an automatic way the number of zeros reflect
the difficulty of the problem the more zeros the more difficult if the network gets more and more
computing power through better hardware and more miners the solution to the problem would be found
faster and faster but this is not desired behavior instead a solution should be found on average
every 10 minutes this has two reasons first very fast confirmations would lead to some miners
finding solutions simultaneously this would fork the blockchain in all sorts of ways and no one
knows what's the right order of blocks anymore the order of blocks is really important though
as it describes the exact transaction history that's also why the blocks need to
contain the hash of the previous block it's a design feature that makes it really
costly to change the transaction history if a transaction in one block would be changed
the hash will also change so all next blocks have a new input so the hash also needs to
change all the work needs to be redone this gives confidence that the transaction history
is indeed correct and not manipulated by someone if a cheater tries to broadcast a transaction
to someone else but not the whole network therefore trying to double spend this will get
spotted rather sooner than later here's a great explanation on how this rod would not work out and
just cost the attacker electricity maybe alice is trying to fool bob with a fraudulent block namely
she tries to send him one that includes her paying him a hundred ledger dollars but without
broadcasting that block to the rest of the network that way everyone else still thinks that she has
those hundred ledger dollars to do this she would have to find a valid proof of work before all of
the other miners each working on their own block and that could definitely happen maybe alice
just happens to win this miniature lottery before everyone else but bob is still going to
be hearing the broadcasts made by other miners so to keep him believing this fraudulent block
alice would have to do all of the work herself to keep adding blocks on this special fork in
bob's blockchain that's different from what he's hearing from the rest of the miners remember
as per the protocol bob always trusts the longest chain that he knows about alice might be able to
keep this up for a few blocks if just by chance she happens to find blocks more quickly than the
rest of the miners on the network all combined but unless she has close to 50 of the computing
resources among all of the miners the probability becomes overwhelming that the blockchain
that all of the other miners are working on grows faster than the single fraudulent
blockchain that alice is feeding to bob so after enough time bob's just going
to reject what he's hearing from alice in favor of the longer chain that everyone
else is working on notice that means that you shouldn't necessarily trust a new block
that you hear immediately instead you should wait for several new blocks to be added on top
of it if you still haven't heard of any longer blockchains you can trust that this block is part
of the same chain that everyone else is using second reason why the difficulty of the problem
gets adjusted the blocks contain a reward of newly created bitcoin these should not be distributed
faster and faster but instead on the prescribed 10-minute schedule but hold on a second the
block reward means issuance of new coins that sounds like plain inflation all
over again but it's very different first of all no matter how many miners there are
a new block gets created every 10 minutes this means that the inflation rate is programmatically
fixed you can look up yourself how many bitcoins exactly are in circulation and how many there will
be 10 years from now no one can change this rate the other great thing every four years
an event called the happening takes place which cuts the block reward in half again this is
part of the rules and can't be changed by anyone so the rate of newly created bitcoins gets lower
and lower capping out at 21 million never ever will there be more than 21 million bitcoins and
no one can change this fact this true scarcity plays a huge role in bitcoin's narrative to become
digital gold miners also collect transaction fees when you send funds to someone else so even when
all 21 million bitcoins are mined they will still have a financial incentive to secure the network
to summarize how incredibly well the technology comes together here and why bitcoin definitely
matters from a technological standpoint first the blockchain as a distributed ledger combined
with asymmetric cryptography to create a system that works without trust in any actors or third
party second mining as a financial incentive to secure the network third proof of work preventing
double spending and other fraudulent activities fourth dynamic difficulty adjustments to keep the
confirmation of blocks and creation of new coins steady no matter how advanced computing becomes
and fifth halving the issuance of new coins every four years to create deflationary properties
and make bitcoin work as a store of value how does a commodity such as gold or silver
turn into money this happens through a gradual process in the course of which more and
more market participants each for himself decide to use gold and silver rather than
other commodities in the indirect exchanges thus the history selection of gold silver and
copper was not made through some sort of social contract or convention rather it resulted from the
spontaneous convergence of many individual choices a convergence that was prompted through the
objective physical characteristics of the precious metals every money evolves in four stages
from collectible to store of value to medium of exchange to unit of account with bitcoin we
are somewhere between the status 1 and 2. the narrative that bitcoin becomes a store value
gets increasingly stronger as the dollar gets devalued bitcoin is not really suitable as a
medium of exchange right now because of high transaction fees and very limited scalability
this could change in the future through a second layer that builds upon the bitcoin protocol the
lightning network is the contender in that area but even if that would never happen and bitcoin
never reaches further than the second stage it has the greatest store value properties that
will ever exist which is big enough of a value proposition to own some already governments
won't be able to stop bitcoin at this point as the internet or the world's electricity would
need to be shut down when they tried banning gold in 1933 the value and demand of gold went up and
not down and the ban was lifted 30 years later good luck bending a global decentralized network
when the financial incentive is as big as it is it also makes no sense to ban bitcoin
from an economical point of view if one country bans bitcoin and another one
doesn't the second one will profit massively through human and monetary capital and of course
it also makes no sense from an ethical standpoint either bitcoin is code which is speech as
long as we agree that freedom of speech is a good thing you can't ban bitcoin for ethical
reasons and last but not least i believe that if the state tries to ban bitcoin this is dealt in
the government even more the harder you try to restrict it the more obvious it becomes that its
entire value comes from not being restrictable the fear that another cryptocurrency comes up and
crushes bitcoin just like facebook crushed myspace is also pretty unfounded myspace had a market cap
of 12 billion dollars bitcoin is already more than 20 times as big as a 250 billion dollar asset that
has all sorts of network effects going for itself bitcoin also profited from path dependence and
an anonymous creator that left the project 9 years ago other cryptocurrencies either
have a central face or are not big enough to be stopped by governments so the
order of how things played out matters to be honest almost no bitcoin critic gets it
while this sounds incredibly ignorant i'm serious every critic just points out things that have
been refuted before whether that's energy deficiency missing scalability bitcoin not
having intrinsic value government regulations other new cryptos coming up as competitors
quantum computing destroying mining bitcoin getting heck bitcoin being too volatile as a store
value and the list goes on and on with nonsense also bitcoin has been announced that for over 400
times already and still it's here up and running in my opinion bitcoin's three biggest problems are
one concentration of mining pools in china which gets lower over time as it seems two people not
getting it to hold adoption but fraud gets exposed over time so the current system will not stay
forever and three a buck in the code that wasn't found within the last 11 years while bitcoin
can still go to zero i give it a low probability i believe we are going to see lots of
institutional investments in the future like microstrategy adopting bitcoin
as their treasury with a 425 million dollar investment square also followed
with a 50 million dollar investment paypal announced crypto wallet so
there's lots of things going on right now the conclusion there is increasing demand with
decreasing new supply paypal and square alone are buying more than the new supply and
they are still new players in the scene bitcoin is on its way to new all-time highs as
i produce this video and yet people increasingly move their coins off of exchanges into cold
storage because they are not willing to sell it's the self-fulfilling prophecy
that satoshi nakamoto described another very interesting factor in the landscape
will be central bank digital currencies which will probably arrive as the next monetary
system the e-dollar and e-euro or whatever they will be called will just drive adoption
of digital currencies though they don't compete with bitcoin because they are still centralized
someone is in control of the supply so they are useless as a store of value inflation will be
even cheaper compared to printing paper bills because it's completely digital so yeah the
incentive to on bitcoin won't be lower at all once central bank digital currencies are here
so where will bitcoin go looking at the stock to flow model or logarithmic regression bitcoin is
still well in the logarithmic regression bands and on pace to add another zero in the next one to two
years being worth 100k plus at this point another theory describes lengthening of cycles which
would mean it still takes a few more years to reach that milestone by the way don't consider
this investment advice it's an educational video i'm not here to tell you what you should
spend your money on or how to plan your future my advice is that you dig down the rabbit hole
yourself and start to understand what's going on otherwise you will just have weak hands anyway
and sell whenever bitcoin crashes which will happen more than once down the line in the end
no one knows where bitcoin will go what the value will be and when that happens i believe bitcoin
is still the most convex bet of my lifetime an investment with way higher potential upside
than potential downside the longer the time frame the better the chances that it will be
up by a lot and if not at least i followed the most liberating peaceful trial of a revolution of
the 21st century that tries to defeat the moral hazard of the current system bitcoin is the most
fascinating and intellectually challenging thing i ever came across and this video is just
a small summary and totally not complete we could still talk about game theory gardener
hype cycles miracle trees multi six segwit forks smart contracts second layer applications full
nodes versus light nodes wallets etc etc etc the bitcoin ecosystem attracts some of
the smartest people in the world from the best first principle thinkers to cypherpunks
polymaths and a new generation of entrepreneurs and still as jameson lopp stated no one has
found the bottom of the bitcoin rabbit hole also please consider subscribing to the channel
for more video essays leave a comment if you have any questions i'm glad to help you and like the
video if it helped you out to conclude this video i'll end on an often repeated quote bitcoin is not
the bubble it's the pin thank you for watching you
