.
. WELCOME
. WELCOME BACK TO THE SHOW. YOU KNOW, YOU HEAR ABOUT THIS
LAST WEEK BITCOIN HIT A MARKET
CAP OF ONE TRILLION AND IF WHAT
I JUST SAID DOESN'T MEAN MUCH
TO YOU, YOU'RE NOT ALONE LIKE I
UNDERSTAND BITCOIN IN THEORY
BUT IT'S THE SPECIFICS I'M LIKE
HUH?
YEAH.
HUH? YEAH. WELL TODAY WE'RE GETTING A
LESSON ON CRYPTOCURRENCY FROM
JARED HALVARD.
HE IS A PROFESSOR AT THE FOSTER
SCHOOL OF BUSINESS AT UDOH.
TAKE A LOOK.
I THINK IT'S PROBABLY BEST TO
START WITH AN ANALOGY IS
SOMETHING WE ALL UNDERSTAND
WHICH IS WHICH IS CASH.
RIGHT.
JUST REGULAR PLAIN OLD CASH.
IF I GIVE YOU A DOLLAR THEN YOU
HAVE TO TRUST ME AND I DON'T
HAVE TO TRUST YOU.
YOU'VE GOT THAT DOLLAR AND YOU
KNOW I CAN'T ALSO GIVE THAT
SAME DOLLAR TO SOMEBODY ELSE
AND I CAN'T MAKE THAT DOLLAR
DISAPPEAR FROM YOUR WALLET
LATER ON.
THE QUESTION IS HOW DO YOU DO
THAT WITH A DIGITAL CURRENCY
WHICH IS WHAT CRYPTOCURRENCY
REALLY IS IS IS A DIGITAL FORM
OF CASH.
WHAT YOU HAVE TO BE ABLE TO DO
IS MAKE SURE THAT IF I PAY YOU
WITH CRYPTOCURRENCY I CAN'T PAY
YOU AND I CAN'T SPEND THAT SAME
THAT SAME CRYPTOCURRENCY TWICE
.
SO CRYPTOCURRENCY IS A DIGITAL
REPLACEMENT FOR CASH IN THE
SENSE THAT IT DOESN'T REQUIRE
YOU AND I TO TRUST EACH OTHER
TO DO BUSINESS.
AND THE INTERESTING THING IS
IT'S DECENTRALIZED.
THERE IS NO CONTROLLING
AUTHORITY.
SO WITH THE US CASH RATE WE
HAVE THE FEDERAL RESERVE WHICH
IS CONTROLLING THE SUPPLY OF US
CASH SO THE INTERESTING
QUESTION IS WHY DOES IT HAVE
VALUE WHICH IS WHAT YOU YOU ASK
THERE AND IT'S WORTH KIND
OF BACKING UP AND SAYING WHY
DOES ANY CURRENCY HAVE VALUE
AFTER THE GOLD STANDARD USED TO
BE THE WE COULD TAKE US
CURRENCY AND EXCHANGE ON DEMAND
FOR GOLD THAT WAS WHAT GAVE IT
VALUE.
NOW CURRENCIES ARE WHAT ARE
CALLED FIAT CURRENCIES MEANING
THERE THEY EXIST BY FIAT OF THE
GOVERNMENT AND THEY HAVE VALUE
BECAUSE THE GOVERNMENT WILL
ACCEPT THEM AS PAYMENT FOR
TAXES, DEBTS AND STUFF LIKE
THAT.
SO CURRENCY SORT OF HAS VALUE
BECAUSE WE ALL AGREE TO ACCEPT
IT IN EXCHANGE FOR STOCK.
WE WANT THE BIG TRICK WITH THE
DIGITAL WITH CRYPTO CURRENCIES
AND WHY THEY'RE CALLED
CRYPTOCURRENCY BY THE WAY IS
SOLVING THIS.
I CAN'T PAY PEOPLE TWICE.
I CAN'T TAKE YOUR MONEY AWAY
PROBLEM WITH A DIGITAL ITEM
WHICH IS THAT BASICALLY EVERY
TIME THERE'S A SET
OF TRANSACTIONS THAT GET
RECORDED IN THE LOCKSHIN THERE
IS A REALLY HARD CRYPTOGRAPHIC
MATHEMATICAL PROBLEM THAT HAS
TO BE SOLVED.
IT TAKES A LOT OF COMPUTING
POWER TO SOLVE IT AND THEN
THAT'S WHAT THE VALIDATES THAT
TRANSACTION.
AND IF I WERE TO TRY TO GO BACK
AND FRAUDULENTLY CHANGE THINGS
I WOULD HAVE TO BASICALLY
CREATE A FAKE GENE FROM THAT
POINT ON, SOLVE ALL THESE
PROBLEMS ON MY OWN AND GET THE
REST OF THE NETWORK TO ACCEPT
MY SOLUTION INSTEAD THE
ORIGINAL THAT VALIDATED
SOLUTION SO IT'S REALLY HARD TO
HACK.
IT'S VERY HARD TO HAVE
BASICALLY YOU HAVE TO HAVE MORE
COMPUTING POWER THAN FIFTY ONE
PERCENT OF THE EXISTING NETWORK
THAT ALLOWS IT TO DECENTRALIZED
BUT ALSO TRUSTABLE, CREDIBLE,
CREDIBLE THAT WE DON'T WORRY
ABOUT OUR TRANSACTION BEING
UNDONE WITH THAT PROBLEM SOLVED
THEN WE CAN START TO SAY OK,
THIS MAY ACTUALLY BE USEFUL FOR
SOMETHING I NEED YOU KNOW
CURRENCY SHOULD BE A STORE
OF VALUE AND IT SHOULD BE
SOMETHING THAT I CAN USE IN
TRANSACTIONS AND THAT'S WHAT
PEOPLE WHO ARE ARE EXCITED
ABOUT CRYPTOCURRENCY THINK THAT
THE FUTURE OF SOMETHING LIKE
BITCOIN MIGHT BE LET'S TALK
ABOUT BITCOIN AND THAT'S
SOMETHING WE'VE ALL HEARD OF .
BUT IT'S NOT THE ONLY
CRYPTOCURRENCY, RIGHT?
THERE'S OTHERS NOW THAT SORT
OF BASIC IDEA IS OUT THERE AND
THE BASIC SOURCE CODE FOR DOING
THIS ANYONE CAN CREATE CREATE
THEIR OWN CRYPTO CURRENCY AND I
THINK AT LAST COUNT THERE WERE
MORE THAN FOUR THOUSAND
CRYPTOCURRENCY FLOATING AROUND
OUT THERE.
YEAH, BUT THERE'S ONLY A FEW
THAT REALLY MATTER.
THE KEY IS IT HAS TO BE THAT
IT'S SOMETHING GOING BACK TO
WHY DOES CURRENCY HAVE VALUE?
IT HAS TO BE SOMETHING THAT
OTHER PEOPLE ARE WILLING TO
ACCEPT IN EXCHANGE FOR
SOMETHING AND SO YOU COULD
CREATE A CURRENCY WITH A
DIGITAL CURRENCY CRYPTOCURRENCY
THAT IS I MEAN ANYBODY CARES.
YEAH, THAT WOULD BE MY NEXT
QUESTION IS WOULD I SAY I'M ON
ETSY OR A PERSONAL MARKETPLACE
AND I SAY HEY I'LL BUY THIS
WITH CRYPTOCURRENCY OR BITCOIN.
I MEAN IS THIS SOMETHING LIKE A
PRACTICAL WAY WILL BE APPLIED
SO WE'RE STARTING TO SEE LITTLE
MOVEMENTS IN THAT DIRECTION.
YOU KNOW, TESLA HAS STARTED
TALKING ABOUT THEY'RE EXPLORING
THE IDEA OF ACCEPT BITCOIN IN
EXCHANGE FOR THEIR VEHICLES.
THEY AND OTHER TECH COMPANIES.
THEY'RE EXPLORING IDEAS
OF PAYING THEIR EMPLOYEES OR
THEIR VENDORS IN BITCOIN IF
THAT'S IF THAT'S WHAT THEY WANT
TO BE PAID AND WE'RE STARTING
TO SEE SOME INDICATIONS THAT
THIS MIGHT ACTUALLY TAKE HOLD
IN THE TRANSACTIONS.
IT'S YAY I LEARNED SOMETHING I
I THINK THE ONLY PART ABOUT IT
THAT I'M THAT I'M STILL TRYING
TO WRAP MY ARMS AROUND IS THIS
PIECE OF A BANK NOT BEING IN
CHARGE BECAUSE YOU KNOW, THAT
BANK IS AT LEAST FOR SOME
PEOPLE IT'S FELT LIKE A SAFETY
NET.
RIGHT.
NET. RIGHT. THEY'RE GOING TO SECURE IT OR
WHATEVER.
IT IS HARD TO JUST IMAGINE THAT
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