Bobby if you could just translate that and simplify that for us this this switch to us and what that might mean for Bitcoin
which we can get to a bit later on. Yes. Good morning. So Peel stands for Proof of Stake. Proof of
stake is a mechanism for consensus. So again we're talking about you. If you're him it's the second most popular cryptocurrency
after bitcoin. And this week you fear him just went through this big test the third test of the switch over. It's called the
girlie test. And they successfully completed that merge test. And now a theorem the main crypto currency is now scheduled for
the upgrade merge next month in mid-September. So this is the most highly anticipated event in the world of theorem and
cryptocurrency. But what does that actually change. Give us a sense of that.
Yeah. So again proof of stake is is a consensus mechanism. So people may have heard the other
version of that is called proof of work. W. So Bitcoin started 13 years ago invented the consensus mechanism cultural
framework. Now remember these digital decentralized currencies are decentralized in the sense that there is no central
authority no central body controlling what's right or wrong on the currency block chain. And the way they sort out what's right
and wrong is through a consensus mechanism. So in bitcoins case it uses proof of work. In fact when Theorem started it also used
for work. And now you know about seven eight years after Theorem launched it's now switching over to proof of stake. And this has
been highly anticipated. It's been delayed multiple times over the last three to three years and it's finally happening. So the
third world the whole world of smart contracts and defy and all the all the digital cryptocurrency enthusiasts are very excited
about this upward. What would what would be deemed a success for this upgrade.
Bobby to you. Is it that yes if you switch from proof of work prove a state
that it becomes more decentralized ether and therefore does that actually in a significant way maybe start to maybe allow people
to look at the NIKKEI a bit less and maybe ether more. How do you think that changes the dynamics of the crypto industry.
That's a great question. So decentralization is still critical. And in the case of proven work versus proof of stake in the
proof of work original method people using machines called miners these quote unquote miners would use machines to do
computations off around the world to help secure the blocking that runs you theory. And that's what's happening on Bitcoin as
well. Now as critics of this who say that they waste a lot of energy you know spending energy on the machines electricity and
all that. So as proof of stake the new mechanism does not require the miners to run these computers powerful computers
anymore. Instead there's a group of people who have a theory who stately Theron who put it down and it comes to like a vote and a
consensus voting mechanism. So the more if you have that you stake down the more votes you have. And through this mechanism
the whole consortium can decide what's the right way to move forward for each area. And this should you over from to work to
push a stake. And the idea is to save energy. Supposedly this will save ninety nine point seven percent of the global energy
use by theorem from mining. It'll all be reduced and they'll be good for the environment. That's the idea. Yeah. Oh see the
proof in the pudding on that one Bobbie. But I want to also we talked a couple of months ago you were having a bit of let's say
a downer on on particularly a bitcoin is saying it may go to 18000. He was saying if it breached that it would go down even
further. Where do you stand right now and how things really evolve for you. Because we've seen just perhaps hold up at that
nineteen thousand level. That was a low. Yes I was. I was just to set the record I'm very bullish on
bitcoin and cryptocurrency. It's just that I think last time I was on the show I was worried about the price you know short
term those price correction. And compared to then you know Bitcoin see him have both come up you more than 20 percent in
price. And I think I think the call the call for bear market that might
be premature. We'll see. Right. If it's if if the bear market doesn't materialize you could easily see bitcoin. You go back up
towards their previous highs especially with this upcoming upgrade Free Syrian. This is very important for the
cryptocurrency ecosystem. Everyone's anticipating it. On the other hand yes there really is a bad bear market. I think
that's a short term one to two year affair. And that's just to set the stage for a big new super rally in the coming years. I
mean Bobby that it takes us back to the initial premise of the conversation. Would you be in favor say everyone saying it's
such a good thing for ether right now. Would you be in favor of switching that kind of proof of stake. Why or why not. Yeah
that's a that's a great question. Once once we have seen a successful upgrade to proof of Stake 43 AM I think the spotlight
will turn to Bitcoin for sure. And that will be a very very fierce debate. There are very there are many many hard core
Bitcoin people who don't want to see a change for Bitcoin and want to keep it at work. And yet there are people who who will
come out and say that proof of stake is better for the environment and so on so forth. I myself I'm withholding
judgment. I'm going to wait and see how the appeal is upgrade for a firm goals and also to point out the audience.
Fundamentally bitcoin in or different even though they're routinely lumped into the same bucket at decentralized
cryptocurrency. But the reality is that they're quite different because bitcoin
is more about money as underlying asset class in whereas a firm is more about a global computation system like a global internet
computer system that will run smart contracts and to help process these smart contract transactions and enables defy and
appease and all these tokens that run on that fear network. So fundamentally bitcoin is to be used very very differently. It
does take some experience and knowledge to understand the nuances I'm describing.
And for that matter it's not that's not critical that Bitcoin has to follow a serum for its consensus there. They can be
different. And right now they're apparently apparently going in different directions at this point.
Yeah I think. Yeah. Bobby you mentioned how sentiments look a little bit better when it comes to crypto markets right now. You
know focusing on this craft out on tornado cash I just wonder how far do you think regulators can really go when it comes to
cracking down with some of these companies right now. And what are your take on all that. Yeah. So tornado cash is a what they
call a mixing service that allows people with the tokens and other tokens on the same network to nominate
anonymously mix it up so that sometimes through use of dirty money laundering. Sometimes people use it for privacy. So there
are good uses in their bad uses. And what's recently happened in the last week is that the US regulators have definitively called
out tornado cash as as you know illicit service and they've banned the formal exchanges and companies from interfacing with
tornado cash. So a lot of people who have previously received payments from tornado cash or who have personally used real cash
those accounts are now barred from using for example us. These see stable coin and potentially many other exchanges and
services in the US and Western world. So this is this is it might be it's a whack a mole just because they sort of crack
down on your cash. But the reality is the criminals still exist on the world. In
the world. Right. So the criminals would just find new ways to launder their money. And today's on cash tomorrow. It's
something else. So it's a whack a mole. I'm not sure if it will ever come to a clean state that the thing regulators truly truly
want.