[AUDIENCE] I liked when you were
talking about ‘the other four billion.’ I have a question about exchanges. In your opinion, what is the best
practice [for building] exchanges? Personally I love bitcoin, but I’m not comfortable with
these “central banks of bitcoin” that we call exchanges. [ANDREAS] Yeah. This question is about supporting the
other four or six billion, depending on how you count. The issue is, exchanges are very centralised and
custodial, which means they hold bitcoin for people. That represents a significant risk, not to Bitcoin itself,
but certainly for Bitcoin users who can lose money. We don’t have too many perfect solutions right now. There are a few small-scale decentralized systems.
Bitsquare (now known as Bisq) is one, still in beta. There are some other decentralized systems. LocalBitcoins allows person-to-person [trades] with cash, similar to bitcoin in that it is [easily verifiable]. It doesn’t depend on any counterparty.
You hold it, you own it, right? Exchanging cash for bitcoin is
the most secure way to get bitcoin. Actually, the best way to get bitcoin is not to buy it. The best way to get bitcoin, is to earn it
[through] the expenditure of your labor. Dedicate your labor to bitcoin and you
achieve two goals at the same time: 1) You are earning bitcoin, from the
people who can pay you in bitcoin. 2) You have removed your labor from the machinery of
the state, which was using your labor to build bombs. That’s my personal philosophy. Two birds, one stone.
I’m in on the good side and out of the bad side.