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Richard Heart and Ozzy the BS filter talk Bitcoin, ICO's, North Korea
Sep 17, 2017
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00:10
everybody doing a very exciting day
00:13
today for for my channel especially for
00:20
the kings of crypto series we have
00:22
Richard Hart Richard I cannot thank you
00:25
enough for coming on thank you very much
00:27
man
00:27
my pleasure where would you like to
00:31
start I don't know come on it's up to
00:34
you you have a list well let's start
00:37
with what's hot right now China all
00:39
right now I wasn't too surprised due to
00:44
the history of China with manipulating
00:46
its currency like to benefit them and
00:52
how how was your reaction to what did
00:56
you expect did you not expect it well
00:59
China is an interesting place because
01:01
it's not really a democracy it's not
01:04
really a free society they perform a lot
01:06
of censorship they have maybe 12 movies
01:08
a year from the West that make it
01:10
through the sensors that can be seen and
01:12
so there's this language and geographic
01:14
divide between the Chinese culture and
01:16
the rest of the world and it's very hard
01:18
to bridge so if you ever try and do
01:20
commerce in China you discover that they
01:23
don't speak English even the people that
01:25
are supposed to so it's very hard to do
01:27
commerce there and it's very hard to
01:30
influence them because you know they're
01:33
not on the same chat channels you're on
01:35
they're not on reddit they're not in
01:36
discord they're not on Twitter if they
01:39
were they wouldn't understand what you
01:40
were typing and all of those frictional
01:44
costs and barriers of not being able to
01:46
communicate and educate makes the place
01:51
less efficient it's you know there's a
01:53
reason that they're not at the forefront
01:56
of everything they're really not at the
01:59
forefront of much and they could be
02:01
because they have a lot of smart people
02:03
there and they have tons and tons of
02:05
just raw human count they have at least
02:08
three times a population the United
02:10
States
02:11
so they run their government different
02:15
over there you know in the United States
02:17
they would they would issue a letter and
02:21
people would read it and it would go
02:22
through legal and then they would act on
02:24
it because no one in the United States
02:26
is gonna shut down their business early
02:27
based on a rumor or you know no not you
02:32
right absolutely not
02:33
so in America you know you'll shut down
02:35
when you have to but in China people
02:38
shut down first and quickly to try and
02:40
gain the favor of the people in charge
02:42
and so if you look at what happened in
02:45
the recent exchange regulation issue in
02:47
China the people that didn't play along
02:49
with
ico
s
02:50
and were considered favorable got to
02:53
stay open longer and the people that did
02:56
play with
ico
s and we're considered not
02:58
as nice and happy and friendly to the
03:01
regulator's they got shut down so when
03:04
you live in an environment where your
03:06
company needs to make decisions based on
03:08
the happiness of regulators not what
03:11
they've written but their emotional
03:12
feelings towards you it's a very
03:15
different game so you know China has
03:19
played the we're gonna ban bit card card
03:21
for five years six years they've been
03:25
banning bitcoins since 2012-2013
03:29
but the bans never really happened so
03:31
they they fake pump fake foot pump fake
03:35
fear uncertainty doubt
03:37
pump fake Fudd and you know finally
03:41
they've advanced their their pump faking
03:44
inside to some actual regulations some
03:47
of which are good for Bitcoin and some
03:50
of which are short to mid-term bad but
03:53
long-term good so they made I see as
03:55
illegal and I cos are a cancer upon the
03:59
crypto community they are a bunch of bad
04:02
teams with no track history doing things
04:04
which shouldn't be built which is the
04:06
reason they don't have competitors in
04:07
the real world because no one was stupid
04:09
enough to waste their time trying to
04:10
build most of those things then they get
04:13
over funded with no check marks and no
04:15
you know no metrics that have to be hit
04:17
and you know the best case is the
ICO
04:23
fails and everyone gets their money
04:24
returned worst case is that everyone
04:27
over funds the thing and then it fails
04:30
slowly over time convincing more and
04:32
more people to put money into a terrible
04:33
idea so I see us for the most part our
04:36
where money is shifted from the people
04:39
who come in last to the people who came
04:41
in first and so it's just an advanced an
04:44
advanced lottery ticket that wastes a
04:47
lot of people's consciousness through
04:50
mind space so you'll have this
04:52
conversation as wasting our time right
04:54
now advertisements they buy or wasting
04:56
our visual time developers will be
04:59
sucked into their ecosystem for short
05:01
periods of time until they're fired when
05:02
the project fails and they so China did
05:06
good
05:07
to ban ICS in their current form where
05:11
they're all terrible and all that
05:14
liquidity that would have gone into i ce
05:15
o--'s will now go into something that
05:17
they didn't ban like bitcoin so the
ico
05:20
ban frees up developers to do smarter
05:24
things frees up advertisements to go to
05:26
smarter projects and frees up investor
05:28
capital to go to currencies which are
05:31
more secure and aren't stealing the
05:34
money from the people at the end and
05:35
giving it to the people at the beginning
05:37
because there's no failure right like
05:40
bitcoin cannot fail in the way that
ICO
05:42
is fail i ce o--'s never get to market
05:45
and then they just disappear bitcoin is
05:49
the market it can't fail there's no
05:51
there's no like there's no market
05:54
adoption like failure case for it like
05:57
we're at the very or the very beginning
05:59
like only 300,000 people have Bitcoin
06:01
wallets there's less than 5 million
06:02
wallets and contain more than $1 in them
06:04
you can't spend this stuff anywhere
06:06
we're at the super duper duper very very
06:09
beginning of this currency replacement
06:13
of the new digital peer-to-peer
06:16
censorship resistant currency of the
06:18
people overcoming the government control
06:22
of men I mean if the government controls
06:26
the currency then the government
06:28
controls how much work you have to do
06:30
right like it's a huge huge huge deal
06:33
and because the capital class controls
06:36
the guy
06:37
and prefers to have boom-and-bust cycle
06:39
because the booms help them more than
06:41
they help the little guy and the bus
06:42
don't hurt them as much they're still
06:44
eating caviar right so artificially low
06:47
interest rates from fiat currencies
06:49
creates a boom and bust cycles which
06:50
harm humans because humans have a
06:52
Keynesian ratcheting intelligence where
06:55
we're ok with raises but we're really
06:56
not ok with pay cuts and we're okay with
06:59
things getting better but we're really
07:00
not ok with things getting worse and so
07:01
it's better to stop the boom-and-bust
07:03
cycle and smooth things out by having
07:06
more realistic interest rates you may
07:08
have slightly slower GDP growth but
07:11
you'll have much happier human beings
07:13
that aren't being ground up by the
07:14
meat-grinder of a couple extra percent
07:17
of gdp growth but some people have to
07:19
get entirely annihilated you know the
07:21
United States we don't do paid vacation
07:25
very often we don't do paid pregnancy
07:27
leave very often we don't do vacations
07:29
very often at all but when you look at
07:31
the rest of the world they do a lot of
07:33
that and that makes America more
07:35
powerful and stronger as a group but
07:37
individually it destroys the individuals
07:40
so the individuals have worse lives but
07:42
the system overall is more powerful so
07:45
you could say maybe a couple generations
07:47
down the row down the way that'll
07:49
that'll pay off but in the meantime it's
07:51
really bad for the small people anyway
07:53
in summary in China China banning I see
07:55
is good for Bitcoin China banning
07:58
currency exchanges not good for Bitcoin
08:02
short and midterm however long term
08:05
they're not keeping this they're going
08:07
to enact real regulations and then we'll
08:10
have more of a flourishing just like in
08:12
the United States in the United States
08:14
it was very very hard for Bitcoin
08:16
companies to get bank accounts because
08:17
there was regulatory uncertainty and no
08:19
large bank would want to risk their
08:21
relationship with their upstream in
08:24
order to put on one single Bitcoin
08:25
company and so no one could get bank
08:27
accounts then everyone bitched and
08:29
moaned and cried about how bad the New
08:31
York regulation was but they were all
08:33
wrong and they were all stupid because
08:34
in New York regulation allowed
08:37
onboarding of millions upon millions
08:40
upon millions of people into the Bitcoin
08:42
ecosystem through coinbase because
08:44
coinbase could get a bank account
08:46
absolutely now that's how I got it
08:49
right so short short term and midterm
08:52
coinbase is vital and amazing as are all
08:55
of the other introduction points and
08:57
onboarding locations that get you into
08:59
the Bitcoin ecosystem long term those
09:02
things die and we go to a purely
09:04
peer-to-peer middleman free distributed
09:07
we don't need the central points of
09:08
failure so short and midterm coin based
09:11
exchanges are excellent we need them but
09:13
long term they go out of business and
09:15
peer to peer decentralized everything
09:17
replaces them but there are very
09:18
important stepping stone so you know
09:22
China's short term and midterm result
09:25
with banning of exchanges slows it down
09:29
however it kind of amplifies some
09:32
advantages that Bitcoin has so bitcoins
09:34
the only guys that have satellites and
09:35
open dime where you can transfer coins
09:38
in person hand-to-hand like a memory
09:40
stick but it's encrypted so you can't
09:42
double spend the coins like if you give
09:43
it to someone they really have it we
09:45
also have you can send transactions by
09:47
SMS so the banning and the the problems
09:52
that cryptocurrencies are going to have
09:55
in China Bitcoin is going to have the
09:57
least because we have the most advanced
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