The 1 Bitcoin Show- Simon Dixon shares his cryptocurrency knowledge


hello everyone this is adam meister the
bitcoinmeister the disrupt meister welcome to the one bitcoin show today is
October the 22nd 2017 buy and hold strong hand long term thinking all right
very special one bitcoin show obviously on the one bitcoin show we only have one
topic and that topic today is simon Dixon he’s coming in from Hong Kong we
are on in a special time for everyone in Asia and Europe in Africa
so Simon Dixon welcome to the show hey thanks for having me back item so you’ve
had to change a name the one the one Bitcoin check well yeah I’m trying to
we’re trying to shift things around a little bit trying to change the format
some just stick to one topic it was supposed to only be one to have one
specific time also but I wasn’t able to stick with that some things are harder
to do than others when you’re traveling but hey people remember to travel the
world like both Simon and I do you’ll learn a lot you get an interesting
perspective so speaking of worldwide perspective that you bring to this what
is the world saying about these crypt of dividends these Forks whatever you want
to call them there’s a lot of talk obviously people are worried about 2x
and then among the social media people people are asking about be gold so what
have you battered from your travels in your perspective the be gold one isn’t
one I’ve been following too much actually I you know been more following
the Bitcoin cash Bitcoin and Segway to X and Bitcoin gold is kind of come I don’t
it’s interesting really and the way that I see all these all these Forks all
these dividends whatever whatever you want to call them is one step at a time
proving the bitcoin is kind of resistant to any anything it throws at it
so 2017 has been an incredible year and I’m so glad with the way it actually
turned out and the way it is I forecast it’s going to end in that it’s had so
much thrown at it and each time it has something thrown at
it it creates an opportunity for people to accumulate some cheap bitcoins
followed by record highs and it seems to be it follows that pattern every single
time now so you know a year in Bitcoin is an incredibly long time but if you if
you remember back to I think it was mid this year Jesus I can’t even remember
the dates or anything when we first had the announcement the Bitcoin unlimited
was going to come along and Bitcoin unlimited led and you know hate it you
know no one really talks about it anymore I think it’s one of the
implementations that can it be doing something on beeg beeg at Bitcoin cash
whatever you want to call it but there are they they might come around again
but if you think about it that was six months ago and no one talks about it
whatsoever so six months ago we had this situation where the scaling debate had
reached the point where it just wasn’t going to be settled so Bitcoin unlimited
came along and said well we’re going to fork we’re going to create this
alternative implementation and there’s going to be two bitcoins and if you
remember back then the only case study we had to work from was really a theory
I’m and the theory and classic and so everyone was kind of you know including
myself was a little bit fearful because I thought it was going to screw with the
economics a Bitcoin and the the the main reason that I bought and I always you
know the main reason I got into this in the first place was because of the
promise that there will only ever be 21 million bitcoins and if there is ever
more than 21 million bitcoins then I would consider that a community you know
a failure to that and I would never ever support anything that broke that rule so
then we had Bitcoin unlimited came and come along and there was a little bit of
fear I think that the price God it’s really hard to remember but I think the
price was tweeting with them under a thousand dollars and and you know and
then it has started to that the fathers really started to crash the price and I
think we hit maybe a low and if someone’s going to fact-check me I
probably which is fine but I think we hit low of around about 600 store
or something 650 something like I thought the 860 I was this back in March
or Abby they were yeah it was this year I’m probably confusing confusing years
because those who are a little bit older you remember an XT and classic and all
these other things we used to have from different people that wanted to fork
Bitcoin and go in another direction but yeah maybe it went down to 850 and for
those of you that were around like a year you know a year ago 850 years was a
great price if it was going through steady growth but I think we I think we
went over the thousand and came back down with the fear of Bitcoin unlimited
and then it set off a series of events that really got everyone in in the
community to kind of decide which side of the fence they’re on whether they
stand for bigger blocks whether they want whether they like the fall of off
chain scaling or on chain scaling and I call it the educational phase where
everyone that was kind of a believer in Bitcoin had been around Bitcoin really
needed to step up and and and dive deep into you know their next phase of
understanding of the technicals of Bitcoin and it was a really really big
educational phase where everyone started to learn you know about what was
important to them what what bit what bitcoins path might be and really just
learn a lot and it was it was a very educational experience for the whole
community everyone was breaking new ground and
then you know we had this user activated saw Fork and we had this series of game
theoretical events that led to everybody making their decision about what the
future of Bitcoin is whether they wanted Segway whether they didn’t want Segway
and they moved everything to consensus and so if you if you remember then we
had this you ASF and then suddenly these deadlines were set and there was all the
fear around you know the Bitcoin cash be cash deciding that they were gonna put
together the next hard fork and and then we had this split in the community which
was an incredibly liberating great experience whereby it just shows that
you can split and bitcoin is still be and you have this other thing which is
no coin which takes a portion of the community that really want to commit to
proving that a different way of doing the economics or you know a different
way a scaling Bitcoin can happen and then Bitcoin can learn from that if it
turns out that to two megabyte blocks is a good thing or the you know all the and
and I think Bitcoin has been watching it has been learning and so every time this
happens people realize okay that the fear wasn’t as bad as I thought it was
so everyone starts jumping in again everyone accumulates all of all the
people that read that for the last five years have been calling Bitcoin a Ponzi
scheme a scam a bobble the tulip a percentage of them decide that it’s not
a Ponzi scheme a scam and the tulip and decide to actually put some of their
wealth into some sound money and so then that causes record highs again and so we
then hit through the record highs and then the next thing comes along now
the if you remember that the the the last thing I mean it seems like a
lifetime ago but it was actually only just a month or two ago and that we
realized that a government was actually gonna test whether they could control
Bitcoin and that came from the Chinese government and the Chinese government
decided that they were going to ban Bitcoin exchanges they were gonna make
ICS illegal they had the justification for doing that because the ICS were were
getting really really you know really out of control in China particularly
they are now in South Korea that they were getting really big you know out of
control in China and so they decided that they were going to launch in an
attack on on this now immediately that crashed a price round about a thousand
dollars and guess what you know Wall Street every institution
in the world that had been saying okay bitcoins a scam we’ve been waiting for
our ETF we’ve been waiting for our regulations bitcoins a Ponzi scheme
bitcoins a tulips bitcoins got no value Bitcoin has no value unless it’s got an
underlying asset Bitcoin has a value because you can’t touch it you can’t
hold it you can’t feel it all the things that the
they were like what I called the 2012-2013 objections that seemed to
re-emerge every time you get a hypercycle of new people and new
adoption they go back to the 2013 objections and now we’re getting that
right now and the we you know China has it has its
effect it crashes the price people come in they buy the little cheap bitcoins
they continue accumulate they realize the economics hasn’t changed they
realize that millions of these bitcoins have been lost there’s only ever going
to be 21 million of them and that’s not gonna actually change and so you could
enter and you go out of record highs again so now what I believe is happening
with you know Bitcoin gold is kind of I guess an experiment on what one can do
when they actually do support Bitcoin from what I can see but also want to do
something interesting and innovative and try and test out some new things but in
a less contentious way and with the friendly for cares
someone’s call it ok the friendly friendly Fork and it doesn’t really have
too much impact other than it makes all the exchanges all the wallets get
clearer on our policy and all of a sudden people are start you know many of
the businesses and the community are starting to realize well you know if
these if these key you know support them or not the reality is that these folks
are going to continue to happen and these dividends are going to continue to
come so we actually need to develop a very easy and fast way of implementing
integrations with these new Forks and now all of the wallets all of the
community and you know coinbase included all the ones that are out there making
their announcements all need to figure out what you know what they’re doing and
if they’re doing the right thing in my opinion they shouldn’t necessarily be
taking a stance on these things they should just be providing their customers
with what they’re entitled to and then allow the users to make their decisions
and let the market decide what the price of these things are you know the reason
that we’re seeing you know strange movements in things like Bitcoin could
be cash and Bitcoin cash is because the the market didn’t fully get to determine
the prices because coinbase held everyone’s Bitcoin cash so they never
got the opportunity to dump or pump you had to buy them if you had your money on
coinbase and zakho had the same and we saw a big downward pressure when when
Zappos started to determine their policy on how their customers are going to
receive their Bitcoin cash and you know I don’t think they should be making
opinions about whether they sell for their customers I think that’s business
suicide you know I don’t think it’s it’s covered in anyone’s terms I just don’t
think it’s a good decision to be making but anyway um you know and then we have
these effects so we’re just starting to see remember be cash the coin based
customers still haven’t received it so we don’t really know what the price is
yet we can see what the price is once you have these major players actually
giving everyone you know what they were entitled to and then with the market can
take over and so the final thing really is the you know bit bitcoins just kind
of proven is resilient you can maintain the economics it’s proven that there is
only 21 million bitcoins it’s proven that a major major government can have
some you know some kind of attack and test the water and those signal that the
world and the Bitcoin community needed to give to the Chinese government was
hey you can do this but we’re still at record highs and I’m delighted we got
there and that’s exactly what happened giving all governments all around the
world a signal that you know kind of attacking this set the the pockets of
centralization that exists in the Bitcoin ecosystem is is kind of a futile
task so if you’re trying to curb and control but now we’ve got the final test
and I believe that the final test there’s no doubt about it say you know
you could put the Bitcoin cash as kind of attacked from some of the very
influential miners you could call the China attack an attack from the very
influential governments and I think you can call the 2x an attack from some of
the very influential business community and the business community have now the
you know testing and get you know I’m on the segue to X meaning list
have-have no doubt here though that they’re not doing replay protection
because they don’t want to split they want one Bitcoin and the people that are
supporting Segway to X want to X to be that bitcoin so their plan is to do
everything that they can to make sure that there is only one Bitcoin and there
is no split and so that means taking away the replay protection and so the
way that I look at this right now is the core implementation the wallet the
exchanges are all gonna have to step up now and and decide what their policy is
and how they’re actually going to deal with it and whether there’s going to be
a split or nor is going to be determined by wallets exchanges the general you
know community around and how they actually handle these this list scenario
what I believe will come at the end of it is by the end of this year every
single wallet every single exchange every single business within this
ecosystem all of the different types of developers all of the miners will have a
template for how they handle this moving forward in 2018 and the end result is
going to be is that we have really really stepped up the game in terms of
what Bitcoin can actually handle how it can handle it and set policies and I
think that drives out a whole load of uncertainty that was a very uncertain in
Bitcoin before and 2018 was a year that the whole world threw everything at it
and if and when Bitcoin reaches record highs after the 2x dip and no doubt
there will be a dip and there will be an accumulation and Wall Street and
everyone will come along and buy some maybe I don’t know maybe there’ll be
some four to five thousand dollar bitcoins and it will go through its 2x
and then the community the developers everyone’s going to figure out how we
still have 21 million bitcoins and essentially what this is to me is an
attempt to change the developers behind Bitcoin and 2x is definitely an attempt
there’s certain people that don’t want core or the people behind core
developing and there’s other people that want different people developing behind
it so now we’re just showing what can happen with these alternative
implementations we’ve seen this before years ago with XT and classic and all
these different you know attempts to try and change a development team and I just
think it’s gonna be stronger than ever and then we’ll reach the records highs
and then throughout 2018 it’s just gonna be free money for everybody everyone’s
gonna have a policy it’s gonna be easy for everyone to do exchanges are gonna
know what to expect you know people are going to have opinions about which
companies they want to use based upon the reaction that they they had to this
and the sides that they took and the community is just gonna move forward in
a market driven environment where Bitcoin has seen most of the major
objections the you know most people put up when they say that they’re not
actually going to invest so when someone comes to me now and says or what happens
when the government attacks would you say well we’ve already got that example
what happens when you know all these different things we’ve already got that
example and I’ll tell you exactly what happens record highs happen well you
summed up all the current events in that rut right then that was really awesome
everyone watching this show right now lie or tapes pound that like button for
Simon Dickson I want to say hello to the viewers in Hawaii there’s still
yesterday in Hawaii hi guys I saw some people over there in the chat in Hawaii
so do check out the notes section below people when you get t-shirts like this
you can get your tresor there all sorts of discount links i forgot to say that
at the beginning of the show but i want to move into some specific things that
you just said i mean there are a lot of questions here one for the people out
there again to put it in a little bit of simpler terms I would say 2x is going to
cause some problem they’re gonna people questioning Bitcoin but November will
pass there will be a December and there will be a January and it appears that
you feel that you think that when we get into 2018
it’s all this uncertainty that we’ve been dealing with in so many different
forms we’ll be gone it will be cleared up and we are gonna be in this new era
of a lack of fun I mean definitely something will come up but I think
you’re very bullish because of this I might am I making a good conclusion here
absolutely look Bitcoin never never ceases to amaze me and everyone every
month you know comes along and seriesiny surprised at it but I think this year we
have seen you know the major major weaknesses being taken head-on it’s
making you know people understand a lot more about this and how to react and
also you’ve got to remember that there was a lot of new people that joined our
ecosystem this year and these new people haven’t experienced some of the things
but these new people after 2017 they will enter 2018 as their semi veterans
you know because they experienced so much in 2017 more than we experienced
probably in the three years prior in one year and so it’s great to see all these
newbies that can kind of you know that they’ve seen these things before they
understand they’re educating themselves and and 2018 to me is just the adoption
in my mind is just going to be going through the roof in so many France you
know we’re we’re with we gain you know a lot lots of businesses that are
producing applications and lots of improvements in the underlying protocol
we have the ability for people to test with these these layer two solutions we
have the ability for companies to go out there and and and hate icos as much as
you might but we also have the ability for people to decide if they want to
experiment with level-2 technology on top of Bitcoin and create something
really innovative then they’re in an environment where they could utilize the
etherium network and raise a hundred you know 20 20 million 30 million and and go
out there and test their code on the world and produce some really good
things so for 2018 we are in a financing paradigm we are have a hundred
and seventy billion dollars of market cap which is now through these ICS self
funding the next wave of innovation many of them won’t happen but you know it is
still self funding ecosystem where the industry is funding itself without
having to go to external without having to sell you know shares to banks and all
those types of things that might have interfered before we’ve got this
self-sustaining ecosystem and we’ve got all the tools now for the industry to
get really really innovative on top of this and then don’t forget we then got
everything you know we’ve got things like rootstock coming through which
which i believe will be a theory a serious threat to you know what what
people are doing on etherium and we’ve got the ability with all these different
tools that we now have and you know for me I mean people the biggest complaint I
get from people you know a Bitcoin caches they just they keep telling me
you know the the transactions are so high transaction fees are so high and
you can’t get in the next block but I just I transact in Bitcoin every day
it’s still cheap as chips to me am I still getting every next block and I pay
you know fourteen to forty cents I can still I mean I you know I we still do
some small micro transactions the fees on as as cheap as they used to be but
that’s because we’re getting adoption beginning growth here you know if people
talk about this this tool it bubbles that were in if you look at the stats
it’s growth it’s just like you know the the internet getting its adoption and
going through a growth phase it’s just like you know Apple releasing the iPhone
and millions of people all around the world are buying that iPhone that’s not
called a tulip bubble that’s called growth and that’s what we’re
experiencing in Bitcoin right now we’re experiencing the growth and the code is
at the phase where it’s getting ready for that growth and through 2018 once we
get rid of these you know these pre you know developers having to waste so much
time on determining how they deal with these Forks and exchanges wasting so
much time on determining how they deal with these Forks and businesses wasting
so much time we can just get on with them
market determining we have the standardized process and everyone can
get on with development everyone can get on with growth and I think that’s going
to usher a wave of innovation in 2018 in on an exponential you know innovation
phase that we’ve never seen before and I’m gonna I’m gonna ask you about this
IC o—- tier because there are people out there that are saying that this Fork
model is friendly for crypto dividend model is going to maybe make some people
rethink going the ICO route you know you can make a lot of money off of IC toes
but you can get incredible distribution of your coin by just doing the friendly
fork and there are people that think that it’s it fits more into the legal
paradigm to to do a friendly fork instead of doing an IC o—- how do you
think these two mechanisms these two financial mechanisms are going to
interact in 2018 i SEOs versus friendly form it’s a really interesting question
I think we’re gonna see more of all I think there is not one size fits all for
this for this financial paradigm we’re in right now I think if you’re launching
a cryptocurrency then without a doubt the best way of doing that is to fourth
Bitcoin for kathiria and fork Z cash fourth litecoin and we’re gonna see all
of those throughout 2018 if you’re launching a token where you’re trying to
build some kind of network and there’s a utility token then it fits into the ICO
model where you’re looking to have some kind of control over that you’re looking
to build your own brand around it and you’re looking to build a network effect
using that token throughout 2018 we’ve been working on this very hard as well
you’ll have regulated securities tokens so you’ll be able to actually not you
know if you if your token doesn’t have utility you’ll be able to actually sell
this as a security in a compliant way to the right people they’re actually
qualified to be able to trade and invest in these securities and you’re gonna see
all of those in 2018 so you’ve got a model for launching a new cryptocurrency
you’ve got a model for watching some kind of network effect and
you’ve got a model for launching companies raising finance on different
block chains that is just going to be such a you know if if you think right
now I mean a bank to the future we’re receiving 30 applications a day for
people that want us to invest in their their tokens or companies I am I’m
forecasting we’re getting ready that our team won’t be able to handle all these
applications moving forward and you know that’s just the way it’s gonna be
we’re on exponential rapid growth this is moving faster than anyone can keep up
and we just got IC tech Segway is kind of Segway and roots talk and and you
know layer two lightning networks I mean maybe it takes a year to get these
things moving and maybe 2018 is a little bit slower than what 2019 will be but
once all these come through you’ve just got you you you will you know we will
have people all around the world building on this technology at a pace
that no one can keep up with and that’s a real big problem and you know we’ve
got to remember and and maybe not everyone came here for the same thing
but the reason that I signed up to Bitcoin is because I wanted to see the
banks get a run for their money I wanted to see people being able to earn their
own money I wanted to be able to see what happens when people spend their own
money and allocate their own money without an intermediary determining how
it’s been and detailing the growth of the economy I wanted to see what happens
when you give people an exit I wanted to see the ability for people to actually
have choice with their funds choice with their money choice for their financial
products and you know that’s what we’re gonna see throughout 2018 2019 this is a
major problem for government central banks investment banks retail banks
traditional financial players and they are all going to be defined over the
next two years when they determine how they’re actually going to react to this
whether they try and own a blockchain and centrally control what they call a
blockchain as a database or whether they embrace this whether goldman sachs opens
that is the first wave and they’re Bitcoin trading desk you know whatever
happens the these financial institutions are all going to be defined over the
next two years and JP Morgan is most likely going to be the
one the stuck at the bottom that the Jamie diamonds family you know children
are kind of embarrassed about because they’re just not moving with the time
and protecting the old you know Bitcoin does what Jamie diamond and JPMorgan
charges millions in sheltering people’s assets all around the world and Bitcoin
does it for free that’s a big problem well that with great line right there I
got I gotta say and Bitcoin does it for free so everyone notice what type that
Simon is he’s pumped up about 2018 and 2019 I mean there’s there’s some great
stuff on the way and hey that leads into 2020 the having that’s what I always
remind everyone about so look how bright things are gonna be in 2018 and 2019
just imagine 2020 so people hold on to your Bitcoin look descriptions for
what’s gonna happen in 2018 2019 and 2020 don’t they’re gonna be ups and
downs but there are so much exciting stuff a lot on the way so keep all that
keep it long-term people buy and hold town that like button sign I wanted to
ask you something very specific about what you were talking about before going
back to 2x we’re gonna be jumping all around here so you anticipate no replay
protection they’re not going to give in you don’t think the 2x developers from
what I can see have no intention of adding replay protection and so what
this does is it means that core exchanges wallets will need to you know
and and you know they need to figure out what they’re gonna do around that and
I’m sure they’re all going to implement solutions that allow this to go through
in the smooth way it may be a last-minute rush you know who knows it’s
like we had last time but the the 2x from everything that I’ve seen and from
everything that I’ve read they only want one Bitcoin they don’t want to split and
they want to be now taking this since it so they’re gonna cause the maximum
amount of trouble and fog possible because just the word replay protection
people don’t understand it people are going to think they’re gonna
automatically lose their Bitcoin people are going to there’s all sorts of odd
will be going around come November the 19th with that in mind and you’re
knowledge of the be cash community because you say you have seen that there
are real people behind be cash do you think that at that point be cash is just
gonna speak up and say hey ignore this battle between these two X and these
core people there’s so much danger there now is the time to get to the little bit
coin which is Bitcoin cash gee do you see this all helping be cash in this for
at least for us in the short term I do and I’m not again I’m no fan of B cash
but I really think that they might be taught some of the people behind be cash
but people are the people part of some of the people behind 2x that they’re
spreading all this pot yeah well my answer is kind of twofold firstly I
really don’t care because Bitcoin cash or be cash is just an altcoin
and I wish them all the luck and the best in in in increasing the value on
the 25 percent I have them sold and so you know I it’s it’s it’s an old coin I
did I you know I’m interested in what Z cash is up to I’m interested in what the
you know I follow it passively but you know the the thing that is captured the
heart and the imagination of the world that has the potential to make the most
difference in the world that can genuinely be a store of value and foster
all the innovation in all these other all coins and other things that come
along is Bitcoin and that’s what needs to be protected and that’s what’s really
important to the world and I believe each time we’re we’re making it
protective more and more and more and so will Bitcoin cash benefits so I think in
the short term they’re not benefiting the reason the price is dropping is
because if the if core or the community or the exchange is or the wallets are
all gonna figure out a way of you know giving people their coins and there is a
split whatever you want to call it there is a new dividend let’s call it then
everybody needs to own Bitcoin in order to do that so the the strategy if you’re
thinking from a pure even if you are thinking from a rational perspective
your strategy would probably be right now to sell Bitcoin cash
accumulate as much Bitcoin as you can and then with those Bitcoin receive your
be gold and receive your you know if there’s gonna be this 2x or whatever it
is in the end that would be the the rational strategy now but whether the
whether people are not acting rationally here they’re acting out of the
longer-term vision that they believe that one megabyte blocks have no future
and that the core development team are not competent at what they do because of
their belief in economics then those people are going off to the 2x chain and
those people are going off to the Bitcoin cash chain and I think Bitcoin
cash and 2x will we’ll be battling it out really I yeah I just see them as
probably competing propositions I guess you thought you know you got an
experiment of what what happens when you maintain the 1 megabyte block and by the
way that one might bicker but block might increase in the future but it’s
just a question of when consensus is reached around that it hasn’t been
reached that’s why we had these lists and then you’ve got a chain that has
these increases in block size but no Segway and then you’ve got a chain that
has Segway and this higher block size but it’s not really a fair comparison
because the the you know bitcoin is so much more decentralized than anything
else and then people always say to me well yeah I mean bitcoin is not
decentralized you’ve got centralized miners you’ve got block stream that
controls Bitcoin core and it’s you know there’s an element of trees not not the
exaggerator trees there’s an element of truth we have to be realistic here that
the Bitcoin ecosystem does have pockets of centralization I would prefer that
the the mining chips were not all manufactured by one major player that
will change in the future but right now that is the reality and I would prefer
that most of the mining did not happen one geographical location and that will
change in the future but that is the reality today I would prefer that you
know there was a funding model for how you actually pay the core developers
without actually them having to work simultaneously for another company at
the same time but here’s the thing the reason this scaling debate exists
the reason it’s taken so long the reason for the last three years everybody’s
been going berserk at each other is simply because while there are pockets
of centralization in certain areas of the ecosystem they all compete and you
have to get consensus still change happens so you could look at Bitcoin
cash as a group of miners trying to get their way they couldn’t get their way
they ended up with Bitcoin cash you can look at you know China a government
trying to get their way trying to crack down on the ecosystem they couldn’t get
their way so we ended up with record heights you know two exes are saying and
all these things are just simply there and there is nothing out there more
decentralized you cannot tell me any coin any other crypto now you could
criticize everything you know many of these things and there’s definitely room
for improvement but there’s nothing that compares and that’s the reality that’s
why whenever anything happens everybody is trading in and out of Bitcoin they’re
not truly trading in and out of etherium they’re not trading in and out of Z cash
they’re not trading in and out of dollars unless they were just pure
speculators but what I’m seeing is a trend away from dollars and over to
bitcoins and bitcoins be in the reserve currency and we’ve got this final little
bits of uncertainty to get through yes that was beautiful it is you can
complain about centralization but it is the most decentralized out there people
it is the one people trade in and out of it is the world reserve cryptocurrency
no doubt about it found that like bond everyone Boris thank you for the five
Australian dollars in the super chat I really appreciate you are a good guy a
real quick question Simon how many Bitcoin do you think are lost forever
this is a question I get asked often oh that’s a that’s a I I have no good way
of putting a real number to that but all I know is that I know a lot of people
that have lost a lot of bitcoins I mean you said millions before and I I admit I
mean let’s say satoshis are part I mean that’s a million right there
right I know I know people that were mining in 2009
and just had a hard drive we have 50,000 bitcoins on that they couldn’t access
because they thought it would have no value I know people that lost you know
25,000 bitcoins in the Bitcoin occur hack I know people that have them locked
up in Mount quartz I know I know you know I’ve got wallets that I you know I
haven’t figured out how to access that I just sat there and one day I’ll probably
figure out what to actually do want bitcoins worth 100,000 Bitcoin or
something like that but you know there’s an incredible amount that has been lost
over the years I mean people are more precautious now there’s more resources
but in the early days I can’t tell you how many of these things were just would
just get lost well I feel bad for those people but that’s awesome for those of
us who control our own private keys I will tell you that there’s less of it
out there the better it is for those of us who are holders just another reason
to be a holder what’s going on with Kim calm and his project you know about this
oh yeah we were seed investors in in big cash and big cash was one of our banks
of the future portfolio companies Kim calm is doing a very the interesting
thing about Kim is he’s a crazy celebrity he’s a flamboyant person he’s
on a mission you know for his beliefs about you know and getting revenge
around what happened to him and the US government’s attack on him and what that
means for the future of the internet and copyright but before all that happened
kim.com was a product guy and he was just an entrepreneur that was a product
guy he built product that got according to him approximately 4% of the Internet
at one point in terms of traffic with hundreds of millions of people uploading
to what later became Dropbox and Netflix and iTunes he was one of those people
that created that there’s the precursors to that with mega replayed it would you
know and and he’s a product guy and then he
became a business celebrity but fundamentally he knows how to build
products they get consumer adoption and mass consumer adoption and so he’s he’s
come along he’s been very quiet over the last two years he’s been building away
he’s got an incredible team of people that have incredible experience at
building very very user friendly you know products they get mass adoption
from the past and so he you know bit-bit cash is essentially a content
distribution and you know someone like yourself who’s you know with the one
Bitcoin show you’ll be able to monetize your content in a new way and he’s
building a great user experience around that and because Kim Kim – a very
interesting character because of what’s actually happened to him in the past any
time he tries to do anything you know the the traditional banking sector he
can’t he can’t get banked so bitcoins you know very interesting for him
because of his you know he’s kind of like in a Julian Assange WikiLeaks type
scenario where he can’t be banked he can’t is he’s tried to do IPOs and then
at the last minute regulators pulled them and so he’s kind of in the scenario
where he is a real test case and user case for when a nice you can actually
bring to product a life and so you know Kim calm is kind of saying Hollywood
tried to attack me and hold back my product but we’re back you know Wall
Street tried to attack me and hold back my IPO but I’m back and you know the
banks have been tryna trying to attack me governments have been trying to
attack me but thanks to this new innovation innovation called Bitcoin and
everything that’s derived from that we still have the ability to bring a fully
legally compliant product to the world and you know really for him an ICO is a
real user case of somebody the that doesn’t have very many other choices
because he’s not doing anything which you know it’s kind of like WikiLeaks it
may it is not necessarily illegal but it’s something that the government
doesn’t actually want and so therefore you have an exit to the system an
alternative fine your system and so he’s going to be
doing an ICO for the next phase of his product and get ready to launch at and
you know good good luck same in seeing if whether he can roll that out to the
world and I’ve used the product it’s a it’s an extremely useful product for
distributing content all over the internet in a sensitive resistant way
and being able to monetize that content and you know hopefully he can get
traction and launch it to the world well III everyone’s been waiting for it
a lot of us thought 2017 was going to be the year of Kim calm he’s a big talker
he could he talks to big games I I hope he brings this product along at 2018 and
I do hope it rots the world and brings Bitcoin in the mainstream or
cryptocurrency in the mainstream my comment on that is I just I don’t
believe any single company is needed to bring Bitcoin to the mainstream Bitcoin
is going to the mainstream on its own it’s just taking a little bit time for
people to create services around it and we’ve reached the phase where no single
company has a long-term lasting effect on the fundamentals of Bitcoin Bitcoin
will get there on its own and companies will drive adoption faster or slower
depending upon the services they release but the long-term fundamentals are
completely unaffected by any company out there that’s a very good point all this
it’s it’s not about one person it’s not about one government it’s about its
decentralized so let’s talk about speaking of one governments you you in
the past have brought up how countries are going to start their own centralized
crypto currencies and you you find no problem with it’s alright it’s it’s just
gonna help Bitcoin in longer I agree but there are so many people who just
love to hear that Russia and China are thinking about their own national they
think it’s a great you know it’s a totally they try to compare it to
Bitcoin these things are not big when they are centralized I would not touch
them if I were in those countries I it would make me want to get into Bitcoin
even more so any updates and thoughts about
these about central bank digital currencies yeah first thing a central
bank digital currency is not attack on Bitcoin as an attack on banking the way
that money is created at the moment is 95% of the money supply is created by
private banks and so they invented digital currency so when you log into
your online banking that money was not created by a central bank you can swap
it for a note or a coin which was created by a central bank but the actual
money was created by a retail commercial bank and so every time they issue a loan
a new deposit gets created and for every positive balance in your online banking
somebody else has a negative balance so digital currency is backed by debt and I
don’t mean Bitcoin and digital currency is essentially it’s been around for
decades and decades now and it’s the bank’s digital version of the currency
that you think the government creates if if you don’t understand how money is
created and so although what happens is when a central bank launches a digital
currency they are essentially creating a new form of fiat so there’ll be three or
four forms of fiat there’ll be the cash and coins that they that they print and
the Treasury benefits from the revenue for selling cash and coins the private
bank benefits from the interest that they charge on the creation of digital
currency every time they issue a loan and the economy benefits because it
increases the money supply every time new loans are issued and when those
loans are repaid it contracts the money supply and that’s what the boom bar
cycle is essentially it’s a central bank you know pushing up interest rates in
order to make your debt more expensive so that you go bankrupt so that they can
cool down the economy when they put down interest rates they’re trying to
encourage you to go into debt so the bank’s create more money and that
increases the money supplies that they can call up the economy and then
eventually once the economy cores are too much you had too much inflation then
what they do is they send you bankrupt by pushing
interest rates on your debt and essentially that’s what central banking
is it’s it’s trying to manipulate how much money the how much story digital
currency that the private banks create now what’s happening here is the central
bank is coming along and saying we need protection from the retail banks as huge
systemic risk in retail banking we are on the government needs to guarantee all
those deposits and banks take excessive risks with your deposits and we
guarantee the system so we need a failsafe if a bank goes bust we don’t
want to bail it out and have taxpayers pay the money we don’t want to bail it
in and have consumers lose faith in the banking system and they all jump to
Bitcoin so what are we going to do well we can create our own digital currency
and if the bank needs to go bust then all the deposits can be replaced with a
central bank digital currency so that you don’t have a contraction in the
money supply and a huge you know contraction in the economy as a result
of banks so this is big problem for banks which is good for Bitcoin now
these digital currencies will be atomically swapped and they will have
exchanges and they will flow easier into any alternative currency into any
Bitcoin you know into anything and these you know once you have these API keys
now granted the central banks can shut off the API keys and shut off innovation
and be very selective over which FinTech companies they allow to build on top of
them but the end result is as follows the end result is the user experience of
fiat gets worse because when a central bank can switch off based upon their
algorithm of how you’re spending your money and if you go to the wrong country
if you do the wrong thing if they think you owe them tax if you just send an
email to the wrong person because they’ve got a backdoor into Google’s API
if you search the wrong thing on the Internet then your digital currency is
going to be switched off and you’re going to have to go to the central bank
and explain what you’re doing with your money if you want it back that it that
really ruins the user experience of money
so therefore people are going to decide that they will only hold the minimum
amount of money that they want the central bank to control and the reason
that they’ll do it is because it’s got a great user experience you know let’s
face it fear has a good user experience you go and you buy bread and the price
is stable and you don’t need to worry about what the price of Bitcoin to
remember or USD is doing and so you will have that convenient money but savings
will move over to these these less controlled more decentralized financial
products and they will all be built upon Bitcoin because bitcoin is a store of
value and the underlying technology that allows you to have the censorship
resistance that is required in order to have these different options so Russia
coming along and saying that they want to create a digital currency just means
they’re attacking the banking system they’re replacing in the bank’s money
supply with their own money supply and they’re protecting for the eventualities
at that Bank might be able to go bust and then they’re also creating you know
a new form of technology that fin tech companies will be able to build on top
of and then those can be atomically swapped or integrated or decentralized
exchanged or anything into any kind of value that you want which ain’t that the
entire financial system is completely changing this should be encouraged it
educates the entire world into blockchain it makes the user experience
of your traditional money so bad that you will be forced into the user
experience of money that you own and you’re going to get a treasure wallet
and you’re going to start to learn how to do this stuff because you’re going to
be peed off when the government claims that they owe you five thousand dollars
and you’re saying that they don’t and your finance is switched off oh my god
now everything is bullish Bitcoin dudes that’s that’s something take for that
and I love your take on the digital currency of countries I really I I wish
all people could hear what you just said so everybody share this video pound that
like button so people do get a get a you know kids here some of that I I have a
question what’s your thoughts I mean there’s some people out there
who when they hear the word tree mine they just go wild now if a coin is a
hundred percent three mine then yeah I understand but what do you think about
the technique of if you’re starting a new all coin whether it be equipped over
then whether it be the traditional way whether it be some new way that you do
set up a small prima in order to compensate the people who were working
on the coin did you feel this to be a big turn-off do you see this to be a
trend in the future what’s your take on pre mines in general I think the the
most important thing is transparency so whenever you’re doing a cryptocurrency
people need to understand the economics you need to be you need to do everything
to communicate the economics and then people can opt in or opt out whatever
they want to do there are some very interesting models now if you’re talking
about Bitcoin as a cryptocurrency and you’re trying to create an alternative
to Bitcoin and you’re trying to create what you believe will be the next or a
value then you you know any kind of pre mine is going to be very very
off-putting because that’s not the way the world reserve cryptocurrency is
gonna get adoption in my opinion now however there are very very interesting
models coming through where you need to figure out one of the biggest problems
that we’re experiencing with the scaling debate is that we do not have a model
for how you pay developers and so there’s many different models that you
can actually you can actually implement you can try and and we’ve had thousands
of different models been implemented across all these different all coins and
so it’s more of a question of it’s more of a question of you just need to be
transparent about your economics and understand you know I mean I SEOs are
the the ultimate pre mine I guess you could say you know they’re they’re
taking 50% keeping it on the company balance sheet and they’re taking the
other 50% and sending it on the token sale and that’s okay as long as you’ve
actually transparently said that you’ve made that very clear and people
understand what they’re actually buying into so you know it’s kind of what would
I see a lot in the the crypto community is people judge
things based upon their understanding of the utility that they think it’s gonna
provide so and I’m guilty as well when banks come along and tell us about what
blockchain are they’re gonna do and block tame this and blockchain that I
start analyzing it from the perspective of trying to create a decentralized you
know currency like Bitcoin and obviously none of the decisions that you make when
you’re trying to make you know the same or compatible so one of the big
challenges of this sector is actually you know there’s a lot of different user
cases that come from this and you can set it up in many different ways and the
you know the beauty of of the blockchain and the community is that you actually
get to audit that and as long as there is some kind of way of auditing it I get
a bit skeptical about the ones that have to rely upon some kind of trust which is
why private blockchain just seems like a really strange word to me you know it’s
private date shared database and but you know it’s a it’s very hard for me to
analyze every single thing with the same hat because they were I’m part of the
big problems with this sector is just trying to keep up with the the different
things that people are actually trying to achieve but yeah I mean pre mine is a
is kind of a headache from when there was all these all coin scams being
craters before the IC o—- boom there was lots and lots of alt coins it kind
of went through create your own oil corn then it went to create your own IC o—-
then it went to hard Forks and then it will be whatever the next you know
version of it when it all plugs together in the decentralized way whatever it’s
going to do there’s gonna be so many different ways and things of doing it
the it’s just it’s just gonna be really really interesting but yeah I think that
the the hate towards pre mine comes from all those all pre mines all coin scams
that came around and I’m sure there’s going to be many many more to come it’s
kind of just by a boon where it took years for people to understand Bitcoin
let alone these other things I think you really summed it up nicely with the word
transparency if justmake if you’re investing into anything
make sure there’s there’s transparency people that you know all the facts how
many are going to be created if they can just all sudden make a hundred billion
more if there’s a hard cap on the amount that they can create I mean again
aetherium there’s still no hard cap on it they still can make as many aetherium
as they want and I mean so that’s out there but people would assume they
ignore that I think that but that’s an interesting and that’s the exact example
that you use a case is the exact user case we should use so people are judging
aetherium based upon their understanding of Bitcoin and Bitcoin and etherium are
completely different things the theorem was designed as a platform
that needed inflation built-in so that it could not be restricted because they
didn’t want the price of aetherium to go up because it would make smart contracts
more expensive so it was never designed to be an asset class that people invest
in it was never designed to go up in value it was never designed to do any of
the things that Bitcoin you know tried to achieve and that’s exactly what it’s
for so if you’re building a smart contract system but the problem is if
people came along and said hey we’ve got this better version of Bitcoin with
faster confirmations and and you know and it’s gonna do everything in the
Bitcoin days and so a massive amount of people start speculating on the price of
aetherium rather than actually using it to build smart contracts as it does with
Bitcoin the massive amount speculate on the price of Bitcoin rather than using
it for owning your own money that’s why coin base exists you know if you were
trying to earn your own money you’d have a treasure wallet if it’s in Queen base
it means you’re not trying to earn your own money you’re speculating with it
which is okay there’s lots of different players in this ecosystem that make it
work but you know but then what people try and do is they try and analyze a
theorem from the perspective of Bitcoin and obviously if you if you’re trying to
create Bitcoin then the theorem is all full cryptocurrency and they’re
analyzing Bitcoin from the perspective of what they’re trying to do with the
theorem and obviously at the moment bitcoin is useless for doing all these
icos and stuff like because it wasn’t designed for that so I
think you’ve really come up with the perfect music case of analyzing one
thing from the perspective of your understanding of how you’re using the
asset class that you’re interested in and it’s just humans you know come in
from their perspective and and you know that’s why we have a lot of trolling an
argument in the community and my goal has always been and you know people
might call this a bit airy-fairy but I found great value in trying and I
don’t get it wrong I don’t get it right all the time and you know I’m a flawed
human that makes mistakes all the time but I always try to seek first to
understand from the perspective that somebody else is coming through because
I help I think it helps me be more subjective in my analysis does that mean
that I don’t get in a Twitter storm debating some idiot that’s telling me
bitcoins a Ponzi scheme no I we all we all do that as humans but
my challenge is always to try and come from the perspective and one thing I’ve
tried to do throughout the scaling debate is appreciate what all the
different players and their roles have been in actually getting Bitcoin to
where it is today at this you know I think we’re below 6,000 right now but
we’ll be back seen and just trying to have an appreciation for the different
players the role that they’re playing and I think that helps and helps us to
have better debate but then I also appreciate that there’s benefit in real
aggressive trolling and chaos and it helps people you know kind of hold
themselves to a higher standard and I think I think you know the all the
attacks on the core developers have led them to be in some senses better
developers more transparent better with communications because they they have to
be in order to kind of you know stand up to some of these attacks now there is a
there is a problem in that there’s a tremendous amount of energy wasted when
you could have been doing something very productive but I don’t know how to solve
those it’s just human nature yes people don’t worry don’t waste your
time it is it is human nature to waste time on things and not be
productive be productive don’t get into these uh if you find yourself getting
into Twitter folks get out of them and just hold your Bitcoin and be happy you
have it I want to go back you know you bring up an interesting point about
etherium looking at it through a Bitcoin lens looking at looking at it through a
Bitcoin perspective is not the proper way to look at it yet I have to say that
I think most people out there including aetherium fans look at it through a
Bitcoin perspective look at it as if it is a competitor with big to Bitcoin that
it can beat Bitcoin that there can be this flippin are people ever going to
learn that that’s not the proper way and if you do you agree that most people in
the cryptocurrency space do not see do not look at a theorem the proper way
then they look at it as in through the Bitcoin lens yeah absolutely that’s the
vast majority but if you actually listen if you actually speak to the people that
created etherium they don’t have the same rhetoric as you you know if you
actually speak to some of the people that are actually under the hood they’re
scared about scaling issues they’re really fearful the all these
icos are kind of you know that they’re coming too soon and the technology is
not ready for it or they’re saying that we never doesn’t we never meant out to
you know we never went here to compete with Bitcoin but they get driven into
that because the rhetoric from from people is trying to focus on what’s
going to win and bitcoin has won and will win store a value aetherium for now
has won icos it’s a crowdfunding platform and that’s that’s you know that
that the store of value one is in in my mind it’s like extremely hard to disrupt
it it’s very very hard to disrupt it’s kind of like trying to disrupt the
internet in my mind at this point you know you could create a more private
version of the internet but it will be an alternative to the Internet and
people will still be building sites on the internet I don’t think that
I mean a theorem has built a strong Network effect on ICS and the ecosystem
is getting stronger and stronger every day and is and that you know that
definitely is a major head start but I wouldn’t say the jury’s out on whether
it’s going to be the the final ICO platform yeah if it’s going to be the
technology that’s most appropriate for icas and so that’s why you’re getting
lots of lots of competing blog chains that want to that want to come and
compete with etherion but and you know you got block chains that want to
compete with Bitcoin but I kind of like Charlie Lee’s approach you know he he
was out for doing innovation with litecoin he was out for doing something
complimentary it’s a Bitcoin he was never he was never helped there to try
and compete with Bitcoin and Hayes if you want to try and compete with Bitcoin
good luck to you it’s a very very very very challenging thing today but that’s
that’s what’s driving us all that’s what’s that’s what’s it’s this is a
market driven experiment that is going incredibly well and created 170 billion
dollars of value and we’ll be pushing through a trillion in the next couple
years no doubt about it oh yeah trillion man yeah all right so we’ve reached the
end of the show here and speaking about a trillion dollars that’s that’s a
really good way to positive way to end it what are you what are your conclusion
airy remarks that you’d like to share before we go off there I think anyone
that’s been in Bitcoin for the last year should really analyze and see what
they’ve actually learned from the last year and if you were one of those people
that tried today trade Bitcoin actually look about how to actually look at how
much money you lost and actually look when you try to sell Bitcoin because
Bitcoin unlimited came along and when you tried to buy it but after and when
you try to catch all those tops and bottoms I’d encourage you to actually
look at how much money you’ve lost and if you actually just did nothing and put
it on a trace or wallet and I you know the the message the message here is
is that you know it we 20 says summarize what we’ve already said I guess 2017 is
the year of uncertainty and that uncertainties going away 2018 is a year
of institutional adoption where Wall Street and and all the financial centers
will around the world get in and that you know that’s going to be gonna be a
tremendous amount of boost to the ecosystem a tremendous amount don’t want
then you’ll get your ETF and once the ETF comes through you’ll have all your
retail volume and all the you know mums and pops and and pension funds and all
the insurance funds and everyone coming in once you have your ETF and then
you’re heading up to 20 20 90 which is where I think in 2018 we would have had
a whole year of lightning networks egg with different hard Forks big bigger
megabytes and bigger blocks and everyone can see what happens to all those things
and in 2019 we’ll be clear there will be some significant applications and that
drive tremendous volume and tremendous adoption that come from that
and in 2020 half that’s just a really exciting roadmap to look forward to then
that the more you know the supply and that that’s entered into the economy
every 10 minutes it just just goes in hot now my guess and I could be wrong
but if you try to second-guess and get insider information and trade around all
the events that bitcoins about to throw at you and this whole crypto mark is
about to throw at you you may be in a position that I know many people are
today I know many people that were around in 2011-2012 and only have a few
bitcoins and the reason is is because they were trying to trade them they were
trying to second-guess they thought the high had to rise they thought it
couldn’t go higher or they thought the bottom was was it was there you know and
that’s just it’s just it virtually impossible just think about those long
term fundamentals forget about the short term trends and I promise you you’re
gonna be you’re gonna be in a good place or we’re all this whole thing you know
kind of failed and we look at the next thing whatever it is gonna be there is a
small risk for that but I just believe that we’ve we’ve hit we’ve hit a
critical mass where that’s caused me anymore
I could not it better myself strong hand people just hold your
Bitcoin he gave himself really good reasons why and what happens to you when
you don’t think long terms to think long term
thank you very much Sonya Dixon for being on the show today his links are
below it’s always a pleasure to have him on this show i am adam meister the
bitcoinmeister the disrupt meister remember to subscribe to this channel
share this video pound that like button check out the
links below for all sorts of discount some shirts and Trez orders we talked
about tresor storage devices are very important control your private key
people I will see you later tomorrow bye bye everyone thank you very much for
tuning in

45 thoughts on “The 1 Bitcoin Show- Simon Dixon shares his cryptocurrency knowledge”

  1. Hi Adam, great interview! Will your videos be making their way to podcast soon? That would be an extremely convenient way to get your content. Thanks.

  2. Anyone here know anything about numerology? Universal 9 year cycle. 2017 is a 1 year. A year to build a foundation of what the next 8 years will consist of. I think bitcoin built quite a solid foundation for itself!

  3. I don't understand at 48:00 when Simon Dixon says that the government says they owe you $5,000 and you say that they don't and then your finances are switched off. When has a government ever said they owe you money?

  4. Bittrex statement regarding support for Bitcoin Gold:
    https://support.bittrex.com/hc/en-us/articles/115002320451

    "If you have a Bitcoin (BTC) balance on Bittrex during the BTG snapshot block 491,407 occurring approximately on October 24, 3am PT (10am UTC), you will be additionally credited the equivalent amount of Bitcoin Gold (BTG) on a 1:1 basis. i.e. 1 BTC on Bittrex held during the on-exchange snapshot will get you 1 BTG. BTC held on orders will also be credited. Only the BTC held on your account is eligible for BTG."

  5. Adam will trezor be splitting next two forks bgoLD 2x like bcash? Or do I have to go somewhere with my private keys to redeem? Cheers..

  6. You should cut out the section with Simon from 42:20 to 48:50 and post that under its own link on YouTube and every other media so people finally have access to the best single explanation of the current financial system and where it is headed. Kudos to Simon for an excellent presentation

  7. Amazing, thank you Adam and Simon! Keep up the "True Bitcoin insights" on your show. Backing you all the way from South Africa!

  8. Yup, banks will get squeezed from both sides – from Bitcoin and the central banks (well-deserved comeuppance!). Afterwards, Bitcoin will stabilize (at some very high price), and act to keep the central banks honest. Great future vision by Simon!

  9. People won't feel Ethereum's inflation for a few years, compared to ETC, because the supply curves are nearly identical for the first few years.

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