Bitcoin became increasingly attractive for investors in 2020 as central banks around the world pumped their economies, printing money at a rapid clip in response to the COVID-19 pandemic, sending interest rates to record lows. ATHEY: But in the financial world we’re still basically running the system on decades-old technology… Part 2 of this series covers why trust is such a big issue, and how blockchains and Ethereum’s smart contracts can help move us to a world where trust isn’t such a big issue in business dealings. But it is also extremely volatile and entirely unregulated, with no help desk if you get into trouble. With about 18.6 million coins already in circulation, the computational difficulty of verifying transactions will continue to get exponentially harder – so hard that the rate of release will slow and Bitcoin’s supply won’t be depleted for another 120 years. But we’re certainly, there’s no doubt that we have more and more private sector institutional corporate interest in crypto and more innovation in terms of making crypto attractive, more secure, more transparent, more attractive for law enforcement as well to tolerate transactions. About a month ago I decided to dive in and learn more about cryptocurrency since my investing in it was doing well.
01:25 Trevor Burrus: Oh, was it the month before? 00:46 Trevor Burrus: Today we take a sober look at the state of cryptocurrency and assess where it’s headed, and whether that early optimism is still warranted. It’s like, it’s all very interesting, but like whatever until another dog shows up on screen and then the dog freaks out. This is the original whitepaper introducing and explaining Bitcoin, and there’s really nothing better out there to understand on the subject. Bitcoin was programmed in such a way that there will only ever be 21 million coins in existence. The name, Bitcoin, is slightly misleading as there are no real coins involved. And that’s just an extremely naive argument as far as it goes, because we could name all kinds of equities and other assets that have appreciated, some of them more rapidly than Bitcoin, that nobody would say are therefore succeeding as alternative means of exchange. The 1401 wasn’t a very powerful computer even for 1960, but since it leased for the low price of $2500 a month, it made computing possible for mid-sized businesses that previously couldn’t have afforded a computer.
But it may also be possible to build an exchange that is as anonymous and decentralized as the Bitcoin network itself. A common criticism of Bitcoin is that the number of transactions that the network can handle per 10 minutes is very low compared to, say, Visa (V) datacenters. They are private keys which prove ownership of coins on the network. Bitcoin is also available on major exchanges, where it can then be sent to a private hardware wallet or elsewhere. That’s of course a major deterrent in using crypto for transactions. Like other cryptocurrencies, bitcoins are earned by computers that solve complex mathematical problems, specifically those that are needed to ensure the authenticity of bitcoin transactions and the relationships between those transactions. Ever so slowly, merchants seem to be warming up to Bitcoin, according to Tony Gallippi, whose company, Bitpay, provides mobile checkout services to companies that want to accept Bitcoins. They began trading in bitcoins. 48:24 Aaron Ross Powell: Given that and everything that we’ve talked about today and the changes that have happened over the last several years in the crypto and Bitcoin space, as we said at the beginning, this was Bitcoin began among very libertarian people who were pursuing it for a lot of very libertarian reasons, and it’s evolved, and the community around it and the institutions around it have evolved quite a lot in the subsequent years.
03:35 Aaron Ross Powell: Well, on that boom and bust because, like we said, it hit 20,000 shortly after and its fall and it fell sharply, and now it’s at 9,000 as we’re recording, 9,000 and something. 02:42 Diego Zuluaga: We have had a lot of focus on the boom and 바이낸스 신원인증 실패 (visit Leedonss now >>>) bust, first of all, then secondly, the question of how people started raising money by promising new crypto projects that offered the same returns as Bitcoin and Ethereum and some of the other larger cryptocurrencies. They’re not exactly like Bitcoin, but I wouldn’t deny that they’ve been spawned by the boom and then the permanency of Bitcoin, which is by now 12 years old, which is difficult to imagine, we still talk about it as an innovation, as something new. Your payment is basically an electronic message, which contains the complete lineage of your bitcoin, along with data about who you’re sending it to (and, if you choose, a small processing fee). No one really knows how governments would react if it gains traction, but many consider the exchanges to be the easiest target for people who want to regulate Bitcoin. The few lawyers who have studied Bitcoin all agree that the currency inhabits a legal gray area.