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Will Ethereum outperform Bitcoin? Richard Heart #157
Aug 12, 2022
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37:19
happened like the laws changed to allow
37:21
banks to actually custody it
37:24
new york has had extremely uh
37:27
well-defined laws with a bit license for
37:30
since 2017
37:31
maybe 2018
37:33
you know uh el salvador made it legal
37:36
tender i went to a walgreens to buy my
37:39
mom some uh
37:40
some like yogurt and there was a bitcoin
37:42
atm in the lobby
37:44
so like i just it's a bit different
37:48
though than like the teacher's pension
37:49
fund the they feel like it's another ass
37:51
that they'd feel comfortable holding for
37:53
the long term
37:54
no but like fidelity sells it and you
37:57
can buy it through
37:58
the
38:00
grayscale trust and it's as legal as
38:02
possibly could be they sell it but today
38:05
does the fun own large amounts of
38:07
bitcoin you want the sad part
38:09
i looked at the uh the celsius uh
38:11
bankruptcy documents and the world
38:13
economic fund is on there and some
38:16
really big
38:18
i think there's some retirement funds
38:19
that are on there they got wrecked on
38:20
celsius something was advertised as low
38:22
risk but was extremely high risk
38:24
hex is advertised as extremely high gain
38:26
and extremely high risk because it is
38:28
you read the disclaimer it says we're
38:29
lucky this stuff works at all
38:31
right very lucky it works at all it's a
38:33
miracle
38:34
so
38:35
it's like hex went up ten thousand fold
38:37
in two years
38:39
and now it's where is it where is it now
38:41
it went up to half it went up to half a
38:42
dollar it went up to 55.6
38:46
and then it dropped down to like three
38:47
or four cents and now it's up at five
38:50
and a half cents
38:51
okay people don't realize how big those
38:53
moves are if you drop the three cents
38:54
and you're up at five and a half you
38:55
just about doubled your money already in
38:57
like a few weeks and really if things
38:59
have product market fit
39:01
they stop dumping at some point
39:04
what is the product what's the profit
39:05
what is the the uh product marketplace
39:07
explain
39:08
sure so bitcoin was the world's first
39:10
attempt at making a currency it failed
39:12
entirely absolutely no one uses it as a
39:14
currency it accidentally did something
39:16
more valuable which has become a stored
39:18
value
39:19
lucky it because the story changed oh
39:21
we're gonna make programmable money no
39:22
programs to do anything we can't even
39:24
have it up in the morning
39:25
oh we're gonna you know
ethereum
is the
39:27
same thing we're gonna make a world
39:28
computer nope you can only do a million
39:30
transactions a day
39:31
uh oh we're gonna make unstoppable
39:33
computing nope you fork the network to
39:34
take that hacker's coins back oh we're
39:36
gonna well we're gonna be money now that
39:38
one seems to be working good for them um
39:42
so
39:43
with with bitcoin
39:45
it tried to do currency it still went up
39:47
in price 690 million percent
39:50
it worked out
39:52
you still can't use it anywhere that's
39:53
fine it went up 690 million percent use
39:55
your visa sell at the exchange buy
39:57
whatever you want it went up 690 million
39:59
percent i don't care if you can buy
40:00
coffee with it i don't care at all some
40:02
of the some of the bitcoiners do
40:04
they're selling they have less than mine
40:06
so
40:07
ethereum
okay
ethereum
says you know
40:09
what we want to do that's a lack of
40:11
gratitude right
40:12
again just take the win you went up six
40:14
million take the win right yeah don't
40:17
get good enough don't complain about the
40:18
coffee yeah they lie about it
40:20
they lie about all the time it says
40:21
unconfiscatable you're like oh really
40:23
because they're selling it the
40:24
government's selling it all the time
40:25
from confiscation so why don't you guys
40:26
stop lying about that right they say
40:28
it's never been hacked you're like
40:29
really well why did they fork the
40:30
network in 2010 when someone minted six
40:32
billion bitcoin by accident or why did
40:34
they have to just patch it again when
40:35
someone could have minted as many free
40:36
coins as they wanted three years ago
40:38
oops it has been hacked you guys aren't
40:40
paying attention they just lie about it
40:42
and it's unnecessary because it's
40:44
awesome enough on its own truthfully
40:47
so
ethereum
said okay you know what it's
40:49
stupid that this network can only just
40:51
trade one ticker the bitcoin ticker why
40:53
don't we let it carry all the tickers
40:54
and then everyone can have trustless
40:56
computation
40:57
and so hex is on
ethereum
41:00
ethereum
is on
ethereum
41:02
uh uniswap is on a fan peer-to-peer
41:04
trustless trading with no middlemen no
41:06
counterparty risk miraculous wonderful
41:08
breakthrough i carried unit swap on my
41:10
back and made it popular myself hex was
41:11
the majority of trading on that thing
41:13
for months and months and months i did
41:15
more to promote it than the founders
41:17
that's a huge amazing innovation real
41:19
world important innovation so we've got
41:21
on-chain exchange with
ethereum
we've
41:23
got stable coins with
ethereum
you're a
41:24
retailer and you want to accept crypto
41:26
well you better get to a stable coin the
41:27
volatility could make you bankrupt
41:29
you thought you got paid it went to half
41:31
the price now you lost money on the deal
41:33
you can't do it you need stable coins
41:35
you need peer-to-peer trustless trading
41:37
with no middleman no counterparty risk
41:38
you need time deposit which is what hex
41:40
does the only the only thing that works
41:42
in personal development is delaying
41:43
gratification do the thing that's hard
41:45
now but right for the long term the only
41:47
thing that works investing is i'm gonna
41:49
have less money now but i'm gonna have
41:50
more money later imagine if you could
41:52
have been forced and forced yourself to
41:54
hold your bitcoin from a dollar to sixty
41:56
nine thousand dollars
41:57
we have so many people sold on a 2x at
41:59
3x and 10x they sold their own future
42:01
but they didn't know it because they
42:02
didn't lock themselves up for time
42:05
and hacks you lock yourself up for time
42:06
and the whole time you're sitting there
42:07
you're making interest you're making
42:09
inflation the same thing the bitcoin
42:11
miners give to themselves all the time
42:12
for destroying the environment hex
42:14
holders get for free without having to
42:15
destroy the environment because we mine
42:17
time and time doesn't cost anything
42:20
kind of the destroying environment is
42:22
very costly and those miners they don't
42:24
destroy the environment they sell down
42:25
the price and hex we don't have to sell
42:27
down the price to pay miters to destroy
42:28
the environment it's more efficient
42:29
there's less negative externalities so
42:31
the price performance is superior
42:35
so basically so hacks is just bitcoin
42:37
with proof of work change bitcoin
42:38
inflates to pay miners to destroy the
42:40
environment to dump the price but they
42:42
need it for network security
42:44
pex inflates to reward stakers to defend
42:46
the price and we already piggyback the
42:48
ephemera network that's already secure
42:49
so we don't have to lose any money
42:50
because they're already losing it
42:51
they're already paying their own miners
42:54
what's hex is there a use case for hex
42:56
other than just this is it a store of
42:57
value is it a value and so instead of pr
43:01
it has accidental upsides that are
43:03
accidental for instance we've received a
43:05
lot of free money air drops because
43:06
people build on top of it like you can't
43:08
trade your heck stakes but then someone
43:10
made a product that allows you to
43:11
make a contract that then makes the
43:13
stake and then you can trade the shares
43:14
so there's things that people built on
43:16
top of it that are accidental
43:17
we have lower transfer fees than uh than
43:20
bitcoin we have higher throughput we
43:21
have more security bitcoin is more
43:24
likely to be hacked than hex is
43:26
these are accidental awesome extra
43:28
things the real claim what's the worst
43:30
part of that what are the downsides
43:31
effects what do you think is the bad
43:32
part x like if you had a devil play your
43:34
own devil's advocate sure
43:37
i think i think a lot of people that are
43:39
new to the market
43:41
fall for memes i have to de-educate them
43:43
of so for instance centralized ownership
43:46
people say
43:48
centralized ownership is terrible
43:50
well they're weird
43:52
which is weird because all of the most
43:53
successful entities in the world have
43:55
centralizedly centralized ownership and
43:57
control the united states has one guy
43:58
that can launch the news one guy
44:01
families have like one guy that kind of
44:02
sets the rules usually
44:05
in an animal king if you don't like the
44:06
human version of that the animal kingdom
44:07
is even more obvious right uh companies
44:10
have one president
44:12
so everything ends up having such like
44:14
markets there's a huge cost of
44:16
decentralization so it's got to be a
44:17
really big problem
44:18
yeah agreed 100 yeah yeah so so like
44:22
decentralization is the opposite of
44:24
vertical integration and vertical op
44:26
integration is the most efficient you
44:27
you get the least middlemen the the
44:30
least
44:31
latency
44:32
yeah so so bitcoin has so first off
44:35
people think bitcoin ownership's
44:36
decentralized
44:38
and then i show them that 42 of all
44:40
bitcoin sits in 2000 addresses
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