David Gerard: Crypto Realities | RR: Understanding Crypto 12
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- เผยแพร่เมื่อ 18 ส.ค. 2022
- What is the real value of cryptocurrencies? Can crypto technology be applied to traditional financial markets? In this episode, we welcome David Gerard, a technologist and author of the books Libra Shrugged and Attack of the 50 Foot Blockchain. He uses his skills as a journalist to investigate the uses and hype around cryptocurrencies and is an outspoken skeptic of the technology. Although not originally from the technology sector, he has become an authority on the topic and has briefed the UK House of Commons Science and Technology Committee on the technology. He also runs a blog covering important aspects of the cryptocurrency space. In today’s conversation, we learn some harsh realities about the benefits of cryptocurrencies and why they will not last in the long term. We learn what the real value of crypto-markets is, why he considers it to be a Ponzi scheme, what needs to change about cryptocurrencies, whether there are any benefits to the technology and the role of financial journalism in the crypto space. Listen as we unravel the political ideology which underpins crypto and whether it can be separated from the technology. We also discuss the outcome of El Salvador’s bitcoin experiment and why it did not work. We also learn the reasons behind the recent crash in some crypto markets and find out which book David thinks everyone should read.
Participate in our Community Discussion about this Episode:
community.rationalreminder.ca...
Books From Today’s Episode:
Libra Shrugged - www.amazon.com/dp/
Attack of the 50 Foot Blockchain - www.amazon.com/Attack-50-Foot...
Memoirs of Extraordinary Popular Delusions - www.amazon.com/Memoirs-Extrao...
Links From Today’s Episode:
Rational Reminder on iTunes - itunes.apple.com/ca/podcast/t.... Rational Reminder Website - rationalreminder.ca/
Rational Reminder on Instagram - rationalrem...
Rational Reminder on TH-cam - th-cam.com/channels/njamin.html Felix - www.pwlcapital.com/author/ben...
Benjamin on Twitter - / benjaminwfelix
Cameron Passmore - www.pwlcapital.com/profile/ca...
Cameron on Twitter - / cameronpassmore
David Gerard - davidgerard.co.uk
David Gerard Blog - davidgerard.co.uk/blockchain/
David Gerard on Twitter - / davidgerard - แนวปฏิบัติและการใช้ชีวิต
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Excellent interview with a very knowledgable guest. I really enjoy your in-depth interviews - this web3/crypto series has been great so far.
I really enjoyed this podcast! It is nice to hear more objective view then someone telling me if I don’t invest in crypto, have fun staying poor” 😂. Also after 13 years of being “early”, still haven’t properly decide on a practical use case 😂.
Great conversation as always! Thank you!
I check the prices of crypto in general and bitcoin in particular every day and have for a long time, like I check the sport news. I have never ever ever wanted to buy any crypto or bitcoin, since I have no belief in any of it becoming the future of payment transfers (they can process too few per second). I buy good old stock in companies that produce products and services. The reason I am so interested in crypto even though I will never buy any... is that I am interested in cults (I read about them as a hobby), and the crypto community reminds me of so many of them. For instance if you are in a cult, you have most likely put most of your spare money in it (like if you have a very strong faith in crypto), you hate criticism of your cult and you don't want to engage in the substantial argument that is being made (like the crypto community when they say "why are you spreading FUD", cults are dogmatic and rigid (like when Bitcoin guys say "you never sell Bitcoin, you only buy it" and HODL), you look up to certain leaders as ideals to follow and you want to become like them (like the influencers that have all these youtube videos showing you how rich they got from crypto and the commenters telling them they are their inspiration) etc. etc. It is like a huge cult with a rather large moneyturnover for a cult.
The Bitcoin ETF has already proven you wrong.
@@kenjo3045 how so? What now that Bitcoin ETF has been approved, am I going to use it to pay for goods and services? The only reason to buy Bitcoin is still just the hope that someone else will be willing to buy it later for more.
Now also imagine being in an MLM that sells courses to trade Bitcoin, that's a double cult
@@sindrigujonsson6278its obvious you lack knowledge of bitcoin! Tell any asset that better than bitcoin for the last 13 years in terms of CAPITAL PRESERVATION? 😂😂😂
😂😂😂😂 it's obvious you bought stocks for capital PRESERVATION too! Did you buy stocks so that one day you can use it for payment?😂😂😂😂😂
It was an interesting discussion, but I have a question. David Gerard said that crypto is marketed to poor people who want to get out of their economic despair. On the other hand, Prof. Tobin Hanspal in Episode 4 said that crypto investors in Germany are wealthier and have higher portfolio balances than non-crypto investors. This is an inconsistency. Who buys crypto? Mostly poor people, mostly rich people, or both?
Very knowledgeable guest. Thanks for the work that goes into these videos! You can make money from zero sum crypto trading but more than likely you’ll lose
negative sum as a third of the money goes into the worthless infrastructure. Its a disgrace.
@@adwayeits obvious you're id10t!😂😂😂😂
I didn't want this to end.
Simply excellent.
price in 2nd half of 2021 was driven by the CME futures etf approval
So the way the stock market and banking system is structured is not a criminal enterprise? You and your viewers have a lot to learn. He gives an example of how the current system is broken with derivatives and somehow pins it to the cryprocurrency world. This conversation has aged badly.
And now to Celsius and Voyager we have even bigger clowns, FTX and Alameda.
Isn't that great? If you're fraudulent company you will get exposed and no bailout in bitcoin world. That not how fiat world works, instead they get bailouts and large sum of bonuses!😂😂😂
6:00 made me think:
If there are 1000000 Buttcoins. And a Buttcoin is currently valued at $10. Now the first people to buy a Buttcoin: 100 people buy 10 Buttcoins. There is now $1000 invested in Buttcoin. Is all Buttcoin now valued at $10 million? Even though only $1000 was invested?
That sounds so stupid I am having a hard time anyone could believe it. But is this how Bitcoin is valued?
Not quite.. your mixing up market cap with token/coin value
@@26NEWERA I don’t mean buttcoin gets a value of 10 million. I mean that people will say that the market for buttcoin is worth 10 million even though only $1000 of value has been put in.
I would guess that the basic value of bitcoin is the energy and hardware it cost to generate. Then on top of that it can have extra value for a person because you can circumvent laws.
@@Ferdinand208 true though its no different really in how a traditional company gets a valuation as its not solely based on size of profits and assets. Their are loads of way to
Manipulate a companies valuation. I would also argue the notoriety of Bitcoin is worth something it is by far the most known of all cryptos.
@@26NEWERA A traditional company exists. It is more than a name. Crypto is more like art. You know it took effort to create so it has some value. But how much is my painting worth? Whatever the next guy is willing to give for it. That is all.
@@Ferdinand208my boi don't get so confused! 😂😂😂
Value is nothing more than a function of DEMAND AND SCARCITY! Your art won't amount to anything if there's no demand for it.
The guest is fully knowledgeable about blockchain and its benefits so far, People have made a solid grounds and with learnt from the way the market and tech has evolved over the years. Recently, more lights are being shed on crypto bonds and clearly D/bonds has a magic touch with giving the users the options around bonds and how to create their own financial products.
Interesting discussion about "skin in the game". Consider that the non-crypto writers are heavily invested in the legacy financial system. Same for those working in said system. Post office wasn't an early fan of email either.
The current price is $0.00 per BRAVE
I would challenge RR to get one of the respected voices in bitcoin like Andreas Antonopoulos, Robert Breedlove, Saifedean Ammous, Parker Lewis to rationally debate bitcoin with these naysayers. As a bitcoin proponent I sought out and listened to this entire series precisely because I was concerned that I wasn't hearing enough anti-bitcoin arguments. I think RR fans ought to get the thoughtful pro-bitcoin argument as well.
There's a wealth of podcasts with some of those guys on TH-cam alone. What's been lacking is anti-bitcoiners that don't sound like pure haters and that's why I've been loving this series.
It's obvious they are bias!😂😂😂😂
Why should there be a Bitcoin or any cryptocurrency? What is the use case? What problem is it solving?
Hopefully crypto can destroy the world quickly by mining.
Lol bitcoin mining just save Texas last time. Now energy operators acknowledging mining has positive impact on energy grid stability!😂😂😂
This did not age well
until the next crash
@@treeztop markets go down, markets go up. 🤷🏾♂️
I'm out now. Have been a trader since 2015. Worked for an investment company. My advice: gtfo.
In March 2024, Bitcoin goes over $73,000.00 🤣🤣🤣
That’s called more speculation. What are the reasons it went up? Are retailers accepting bitcoin ? What actual transactions use bitcoin?
too sad it's never e real debate in crypto, are you get the pro crypto talking to other pro crypto or it is the opposite but never a true open debate :(
I haven’t seen an actual big enough use case for crypto or blockchain that cannot be solved with traditional technology to make this whole debate worth it.
I enjoy your podcasts, but this guest uses too many words with strong negative connotation, like trash and manipulation. His opinion seems to be too strong and one-sided to be objective.
People have strong opinions. If you watch other episodes in this series you will find other people that are more positive towards crypto.
It's best to expose your self to people who have strong opinions on both sides so you can hear all the arguments rather than just listening to fence sitters
Gotta sell those books somehow
None of these "critics" are...Felix has downplayed Bitcoin for years and the coping reminder podcast will seethe for years to come
I have rarely seen a technologist understanding a technology so poorly. Frankly surprised by the poor level of arguments used. (Un)rational reminder!
Enlighten us. What's incorrect?
@@MoritzAdler Examples:
- He implies that bitcoin/crypto is not a real innovation and is incredibly simple. However, before bitcoin there was no way to transfer value on the internet without any counter-parties. That seems like a legitimate innovation regardless of one's personal feelings towards it. Also, if it was that simple you would've expected it to be invented earlier. For example, Paypal originally intended to create their own digital native currency but couldn't figure it out. Is the claim that Musk and Thiel are not smart?
- He implies that people being unbanked was just a problem made up by crypto people. Approximately 1.7 billion people are unbanked. Here is a quote from the World Bank on its importance: "The World Bank Group considers financial inclusion a key enabler to reduce extreme poverty and boost shared prosperity."
Most of the rest of what he says is either mostly moot (market cap point) or a gross exaggeration (almost everyone involved is a crook). He makes some good points (history of regulated markets) but overall is extremely uncharitable and ultimately inaccurate.
Agreed...this guy is fuckin brutal...Alex Gladstein would steamroll this grifting fool
@@k14pc Bitcoin and it's blockchain are an innovation, but not quite as much as people think. There have been attempts at privatized digital money before - they all failed. And Bitcoin isn't exactly storming the castle either. It behaves like a very speculative derivative for actual money ... rather than like money itself. Which economically places it at the opposite end of the spectrum, of where it would need to be, if it were ever to be considered as a real monetary option.
Also, there were permissionless systems before blockchain. They all suffered from much the same bottle necks and lopsided dependencies that blockchain is suffering from now. Blockchain is little more than an interesting finger excercise, that proves itself very impractical in the real world
- poor scalability
- one direction only
- changing entries is technolgically impossible, even it were to happen for perfectly valid reasons
- consumer protection and KYC are borderline impossible
- transactions need to be expensive enough to not incentivize Sybill attacks (which makes it useless for micro-transactions)
.... and so on and so forth
@@MoritzAdlerhe's saying the protocol that solves the double spend problem is not revolutionary!😂😂😂
Keep HoDLing. We will watch this guy's video in some years from now 🙂
good luck lol
few understand
@@bronsonschnitzel7493 thanks my friend! Good luck to you also!
Like Paul Krugman and the internet
Few understand lmao
Cameron & Benjamin great podcast. From the crypto series It’s very clear both of you are not pro-crypto. If you guys are correct that crypto has no practical use, you’ll look like geniuses, but if you’re incorrect, I’m sorry but you’ll lose credibility to many of your viewers.
LOL. Might as well never take a stance then.
They are in the financial business. They have a TH-cam channel and put themselves out there. Out of the crypto series and their own opinions it’s clear they are not pro-crypto or neutral on the subject. Their position is clear. All I’m saying is if they are wrong, it will be a huge black eye to their credibility.
@@GuerasKanche Sorry, it's actually hard to tell if you were just warning them about their viewers in general or if their credibility would be lowered in your eyes as well if they proved to be wrong.
If your point was that general casual fans might start thinking they're idiots, then yes, I agree with you.
Interesting talk, yeah crypto has scams and sharks in it but to label it as a get rich scheme is naive as how long did it take BTC or ETH to build up any real price action??
He and people like him also have a vested interest in Crypto as they make money in directly from doing books and talks.. so even though he hates it i am sure he is more than happy to watch it move through bear and bull cycles.
Regarding liquidity again i can and have sold crypto on my exchange and never had an issue getting funds so not sure where he gets his evidence from.
You still think the same? lmao
@@syllo137 yes thanks
@@26NEWERA insert "Dog in burning house" meme
@@syllo137 go back to playing your little computer games buddy.
@@26NEWERA did I hit the nerve, buddy? Few understand, right? :d