This week in Bitcoin- 1-26-2018- Zimbabwe, Lightning Network, Bitconnect Lawsuit, Robinhood


hello everyone this is adam meister the
bitcoinmeister the disrupt meister welcome to this week in bitcoin today is
January the 26th 2018 strong hand be patient people long-term thinking all
right so this is a very special show because Towanda Kimbo is here from
Zimbabwe we expected him last week but there was a power outage now he is here
and he’s laughing his butt off at my introduction as he usually does as he
finds it completely hilarious but we also have Rick coming in from Boulder
and introducing Chris black straight out of New Jersey New York whatever you want
to say East Coast representing Chris has got an awesome Twitter feed all of these
guys pertinent links are below Rick is on block digest and of course tawanda is
in charge of the largest cryptocurrency exchange in Zimbabwe in Harare galaxies
I have been there before he was an awesome host I’ve been at his uh his
event so the Zimbabwe situation a Bitcoin is something that we all wonder
about people speculate about people talked about in November when there was
a change of power and we were all curious how is tawanda is he okay well
now you see he’s okay and he’s opening up the show to tell us just give us a
full update of what is going on with Bitcoin in Zimbabwe welcome back
tawanda we are very happy to have you here hey thanks for having me Adam I
can’t you good to say pound the like button I will thank you for saying before like Norris 82 a few times but
Zimbabwe is an interesting use case wasn’t Zimbabwe as it is in many places
all over Africa so in many African cities our money doesn’t
really work across borders so it’s very difficult to do international payments
very difficult to do online payments it’s almost impossible to collect
international payments and get your money you get to use a ballpoint pen and
so the use cases for crypto currencies such as Bitcoin this part of the world
had to do online payments international payments collecting international
payments as well and so the bubble is the most expensive between case in the
world 17.5 K right now like reason is Bitcoin is a better form of money than
the money we use today and so a lot of people want to buy between the demand is
huge because between is much more useless than the money we use in
Zimbabwe it’s harder to do international payments other to do online payments and
not much has changed since since we last spoke our government has changed but in
space not much has changed from Zimbabwe Thank You Adam alright well this is this
is an important update everyone so even though the government has changed it’s
basically still the same situation in terms of the economy and Bitcoin people
still need to get their money out of the country and they can’t send us US
Dollars are basically the currency there so they’re they’re trying to get a hold
of Bitcoin just as they were before and your exchange is a doing as well as
before correct everything seems to be the same then yeah seems like and we
keep growing a little bit every month last time I was on the show we’re about
six people on now like 17 our volume has grown a little bit
liquidity is getting better like yeah things have changed but for the better
so we keep going a little bit every month all right well this is this is
good people were very curious other panel members do you guys have any
questions for tawanda before we continue on to the the rest of the news because
he is a quite an interesting character you don’t get to hear from a guy from
Zimbabwe very often these chattels yeah tawanda great to
meet you I was reading a blog poster of November
about you were kind of comparing the government situation to to crypto
right because you said this isn’t gonna be a hard fork this is gonna be a soft
fork of the government it’s not gonna be a coup it’s gonna be something different
and that was a couple months ago so is that sort of how things shook out where
it was a different than what you thought up well it’s kind of weren’t like
everyone expected and so so so people basically wanted in you like we had the
same president for for a very long time people wanted a new president and so we
ended up living a Emotiv coup and the government’s changed so it’s kind of
like a I like in that blog post I kind of like and it’s to kind of like get
into ad folk soku is when there’s an entire change of government quiz like ad
folk out call this one is soft folk I think it set out the president left i
well I wish you would you’ve cornered to get away but but it is what it is and
with a new government now our new government message is that a Zimbabwe is
open for business and not much has changed but but I also know that it
takes a lot and like changing the country improving the economy is not
anything so it takes a long time we are we are hopeful it’s going to keep
getting better we don’t think things are going to get
us in Zimbabwe so we think we’ve already seen the West and we we think things are
going to get better but it’s not just up to the government to right so companies
such as ourselves that are building solutions to solve local problems it’s
also our responsibility to improve things and some bad way and our team is
working very hard to give people its babo financial eternal to allow them to
use their money however they want to wherever they want to very very awesome
palnet like button for Zimbabwe being open for business please let it be true
and let’s let’s get it on over there people
let’s let’s hope that everything is you know it’s good there’s a change after
you know so many years it’s nice to have a change over there
and hopefully it is gonna be truly different and they’re gonna be open for
business alright so before we head on note I
wanted to essa’ to undo a question nice to you know meet you too I just wanted
to ask you cuz like you saying the power was out last time
whenever you’re supposed to be on like how was a situation were y’all able to
handle that with like SMS transactions trying to get transactions out or was
there uh was there a way for y’all to sort of a you know resolve that problem
because I know that there’s some some applications out there that might help
people through these problems because we’ve really dealt with that issue over
here with Puerto Rico recently and I know that’s an issue we’re trying to
shore up so I was just gonna ask how that situation
sure go out pan out there yeah so we still get those problems
so simply especially in countries like in many countries in Africa we Justin
Bobby like in many places in Zimbabwe also let this to do get power outages so
a lot of countries embargo included consumes more power than it generates
and so we tend to import power importing power is still it’s do a problem for the
government as well because a support company is basically done by parastatal
because you need foreign currency to pay for that and countries that Moochie
accepting cryptocurrency to pay for power so we import a lot of power from
neighboring countries so it’s going to take a while to solve these problems and
so when I talk about India ondestroy talks about how hard it is to do
international payment so this is not just the average case and so even the
government even banks a struggle to send mine outside the country to find the
nostril count or make international payments on this for for themselves and
so these problems will likely be here for a while
I think cryptocurrency will solve them a bit in the future but yeah alternative
solutions such as like being able to to fall back to solutions such as SMS
when when you could be using internet Google a lot of companies have invested
in alternative power so mobile network mobile network operators will live a
little far generate as a base station so in case power calls or something they
can’t rely on other forms of power all right I’d like to say in the chat
Michael Michael McMurray did a $2 super chat he said here are some garbage Fiat
thanks for the content well thank you Michael and thanks for the garbage Fiat
that’s good and I’m glad you called it garbage because Bitcoin that’s where you
should be use your garbage Fiat to get you some
bitcoins now let’s let’s move on to Lightning Network because people are
very excited about the Lightning Network this week it seems to be something that
people keep bringing up to me and people were enthusiastic about now the market
hasn’t reacted to it because you know the market is the market whatever I
don’t really worry about the price I think about it long term and we’ll get
into that in a second but Rick what what is that with lightning that working
you’re in your head what’s going on here well I just checked it out it looks like
we’re at 249 nodes and it looks like we’re at a 725 of open channels it’s a
little over 38,000 there yeah in the in these channels and I think that it is
having effect I think we’re seeing the fees go down in the market and I think
that that has something to do with this because we have this ability to have
felis transactions here and without a doubt the miners are not really going to
take that too kindly whenever they’re losing a little bit of their funding
there so they could drop these I think and we’re going to see that that
continue to play out as the Lightning Network grows and segment adoption
continues and you know people say that people don’t want to spend their Bitcoin
but I disagree you know I’ve got less than like I’ve got a real real small
amount of Bitcoin and I’m still hustling up a lightning node last night and I’m
syncing it with my Bitcoin node to buy some stairs and like I mean like you
know I know people say like we don’t want to spend their Bitcoin but I do
want to advance this to a level where we have things that can build these
robust systems where you know if the power goes out in Sim Bob way there’s a
there’s all these available options in order to do that we have to advance the
progress of Bitcoin in these second layer solutions in order to do that and
that’s why I think that this is vitally important I think it is being priced
into the market maybe and I mean you know this had a lot to do with the price
rise last year so I mean like yeah it is being priced in and I think we’re
starting to see its effect on the fees and I think it’s gonna continue to grow
and we’re gonna see a lot more projects with lightning and the ability to do
micro transactions on the Bitcoin network I think it’s going to be
incredible I’ve seen a you know some developments coming down the pipeline
that are gonna really show its use to where a Bitcoin can actually start
integrating into society to actually change things in an effective way
awesome Chris is this as big as I think it’s gonna be what’s your deal on this
yeah you know for me it’s been an interesting mental journey with with
Lightning Network because I come at all of this from a very you know sort of
like og libertarian point of view you know and the the decentralization aspect
of Bitcoin is is what I love and when lightning networks first started to get
talked about and probably a lot of people share this experience the first
thing you think of is okay there’s going to be centralization okay there’s going
to be giant notes where they’re going to process a vast majority of lightning
transactions and you know eventually the government’s going to crack down and
require kyc and they’re going to regulate these things and this is going
to completely screw up Bitcoin and as I’ve learned more about the protocol and
about how it’s going to work and actually put a little bit of thought and
reading and research into it and watching a ton of YouTube videos and
everything you know I’ve started to now see the light right I’m seeing now that
lightning Network is is more than just faster transactions lightning Network is
a layer that’s going to lay on top of Bitcoin that is going to take it to the
next level the same way that protocols took the internet to the next level and
you know the the comparison that I use quite a bit because I think that it
makes a lot of sense is when he it when the internet was first getting getting
formed you know even before the web was around wires were laid under the ocean
that connected continents right so when we communicate over the Internet a lot
of data is going through these wires that have been down there for decades
under the ocean the wires themselves have not had a lot of improvement
they’ve been laying down there and they’re just doing their thing and
they’re just communicating the reason that we’re able to now stream video from
the u.s. to Africa whereas we were not even close to being able to do that 10
or 20 years ago is because of second and third layer layers on top of the
internet so it’s the same progression in ondrea’s Antonopoulos is like one of my
favorite speakers on the topic he lays this out perfectly and he explains big
blocks are great for today but they’re never gonna solve the problems we’re
gonna face in 10 20 years from now that’s what lightning the network is
doing for us and I think it’s just a matter of time until the work the rest
of the world sees it beautiful beautiful summation there I
want to say talking about the rest of the world and Lightning Network what’s
going what do you think Towanda it is this making a big difference for you
guys what is I when I I don’t think it’s ready to be to be used for mainstream
now or for a while I think it’s going to take time before we can like we can’t
really use the night magic to to provide true solutions here but one of the
reasons I’m excited about it is a I tend to speak to a lot of banks regulators
institutions on the continent and a lot of the people have a lot of questions
about Bitcoin but it may have actually used it and so I know money started
presentation and I’m sitting here being quite a regulator I was a big
institution animalist at a presentation by asking wheels you speed claim before
it’s usually zero people and then I try to demonstrate it with a natural between
transaction so I open bitch refuels comb I use
between to send some to buy some airtime and so the phones we use in Africa I
must be prepaid and so you buy some airtime for someone in real time and
they get the airtime instantly in real time and they can begin they can start
to see the power these technology is and I don’t know if you guys know these pads
I in Africa most of Africa’s on paint but even those that have pink accounts
like most of them comes to international online payments the so what you can use
your bank account for is very restricted and in many cases even if you work for
the bank you can only make payments inside the country you can’t use it to
do international payments and so it’s really powerful when you do that it was
of the fees it was getting other to keep doing that because you can’t a hundred
pack simply time to buy it relative with with of time a Betamax I noticed is
enlightening up director I see bitch with you is one of the guys are building
an app on top of lightning and I’m really excited about that so I’m I think
lighting network is going to take off in Africa special because that’s where the
need for payments is the greatest I believe cryptocurrency was designed for
Africa and I think in Africa there is a really good use case for some things are
just like metric well there you go people this is gonna be big
once again Lightning Network needs some work it’s not you know it’s not ready
for everyone just yet they’re working on it still but it’ll be exciting anything
it will be it will be very exciting to see would have I’m glad we have that
African perspective on it and people are just finding out about this now I again
when I travel around people ask me about lightning that were so people are very
very very curious all around the the world about it real quick to on the what
on the exchange on your exchange down there what cryptocurrencies do you have
on there now Bitcoin and what else so we whoa we play well beat screen Kish
each grain goals and so some let me just add some people I make you acting too
soon about that so we could it’s going it’s going cash between gold we’ve just
added the tedium I will put agent and lightweight while working on adding
still a two so in a few weeks we’ll have still enlisted be alright there there’s
your update on exactly what we got going on down there in Zimbabwe so now talking
about exchanges we we’ve heard here in America that we’re about to have
something called Robin Hood compete with coinbase uh Rick tell us about this why
are you excited about I’m excited we need more competition here in the United
States people complain about coinbase a lot I say the solution is competition
what do you say about this Robin Hood that we’ve heard about this week yeah
pretty excited to see the competition come into the space too and excited to
see like just the outcome of it because you know all these uh new exchanges
coming online they all kind of have to you know mind their P’s and Q’s and
trying to figure out what exactly is the legal way to do things here and it’s it
was kind of interesting to read through they got like about 400,000 people
signed up right now to start trading on February 1st in these particular five
states which I’m sorry I don’t have those five states in front of me right
now but because I mean like I started digging into this a little bit more and
as you’re going through the website there’s like a legal leaves like you
know it’s small words that you know you’re not supposed to really start
reading that I started reading and there was a regulations button there and I
went through and click the regulations and let me just pull this up it says
that uh you know Robin Hood Financial LLC is currently authorized to do
business in all 50 states Washington DC and the Commonwealth of Puerto Rico and
it’s not it does not currently offer foreign investment accounts to apply for
Robin Hood account you must be 18 years or old have a valid social security
number have a legal u.s. residents be a US citizen
and and you know it just kind of goes into more than five states on that legal
document and it kind of like shows like I don’t know maybe they’ve put out this
at this exchange they said here’s here’s the way we’re gonna do it and you’ve got
till February first to respond whether or not you’re gonna shut us down and now
if you don’t shut us down we put in there that we were gonna do fifty states
but we only did five and you still didn’t shut us down so if we’re gonna
keep going this way and like I mean let’s just like these steps to see if
they’re doing the right way to open this exchange and I think it’s definitely
going to drive competition from traders I’d like to see like because we’re
getting to that level where bitcoins were so much I’m wondering if some of
these real big traders and whales aren’t going to just buy a piece of property in
one of these five states to try and start doing this No Fee trading and see
if they can track up as much money as possible why it’s there I mean like
these are the sort of outcomes we starting to see with decisions with
Bitcoin and the infrastructure that’s been laid down it’s people are really
making real-world decisions about this stuff and it’d be interesting to see all
these different outcomes and it’s definitely going to put up some
competition for coinbase and you know just while we’re on this
like adding competition to the space is like a cash app squares cash app is now
now selling pick coin and you know anybody out there that has the cash app
or you don’t have the cash app go download the cash up and you know you
could start purchasing Bitcoin the only thing about it was whenever they were
saying you were offering it to everyone they were saying this in a I wasn’t
having it and I started looking online it’s like you have to put in your phone
number and your email in order to get access so if you don’t have your phone
number and email in there and you still don’t have access it’s probably because
you don’t have one of those two options in there just put that stuff in there
and you can have access to five Bitcoin and add it to your cash card it’s still
relatively new in the process and you know I just yeah it’s great to have all
these new on-ramps for Bitcoin users and to see these uh you know entrepreneurs
testing the waters to see how this these decisions are going to affect society
and how what the outcome will be because it looks like they’re not planning on
making much of a profit for a while because they’re trying to really I guess
be the place for our trudge in space yeah they’re trying to
make a big splash and take some losses now Chris what’s your what’s your
thought what are your thoughts on this one of the things that I love about what
Robin Hood is doing I’m a marketing guy right I think that Robin Hood has come
out of the gates and they’re the first exchange that’s really embracing the
crypto trader lifestyle so if you go on there and they’re crypto website you
know it looks like Tron right it looks like a video game
you know it’s flickering at the top of the page don’t sleep which is kind of
like an homage to how crypto traders are you know that mean we’re we’re in bed at
night our wife is laying next to it but we’re looking the other way looking at
our phone looking at the price of Bitcoin you know and I think that that
Robin Hood is the first exchange who’s sort of coming forward and saying we
understand you we understand what you like we understand how you are we
understand what you want to see when you’re trading you know and it doesn’t
really matter when it comes to you know whether or not you can actually trade
right but to me that’s a symbol that perhaps they’re going to include
features that are important to people like us the video game generation that
likes to have that kind of extra little like we get you type of mental thing
going on there so I’m excited about that with Robin Hood Robin Hood cuz we
haven’t been seeing that with with coinbase or other exchanges yet that’s
awesome and you have that marketing perspective on and I hadn’t thought
about we need we need some reach out to the community here definitely we need to
make things easier we need the user experience to be easier if these guys
are gonna do it then more power to them that’s awesome hey I just said that
wanted to make a quick comment about that because you did remind me it’s like
they really are reinforcing that like you know that that lifestyle of like you
know this is 24/7 you don’t sleep you speculate and it’s one of these things
where I think like it’s important to remember that there’s also exchanges
coming online like disk where it’s a decentralized exchange with PGP you know
orders that are not on a centralized exchange book that can’t be legally
taken down and know that they are taking these legal
steps to make sure they don’t get take it down but it is important to remember
that this is a centralized thing that can be taken down and I think that we
should be monitoring these this growth calls on YouTube they’re happening every
every week and they’re trying to build their USD liquidity and as far as just
building like you know a more robust system to where you know these exchanges
if one does go down you know we do have this decentralized exchange where people
can still you know exchange and like you know if the power goes out we got SMS
it’s important that we stay up to date on these other things that are coming up
that are a little bit more difficult to get running but this is like where this
is where the tech is going like the speculation and and the money to be made
is definitely there and now you know they market it great but I think it’s
important to remember that it is marketing speculation all right everyone
we’ve got a hundred live viewers right now so pound that like button check out
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are awesome they’re bringing it today Chris I want to I want to ask you about
bit connect the lawsuit is now percolating or maybe there’ll be
multiple class-action lawsuits who knows there are a lot of angry people out
there personally I mean I was warning people all along I think it’s hard to
believe so many people fell for this I’m seeing videos pop up now people saying
they lost all their money and it’s unfortunate what is what is their take
on the situation what is your take on this of course it’s unfortunate you know
it’s this is not the last time this is going to happen you know we are in the
Wild West and the whole point of regulation of other markets is to
prevent people from entering into investments without reading through what
they’re getting into thinking it through like a logical person and you know being
careful with where they put their money big connect was obvious to so many of us
but obviously to a lot of us it wasn’t right so people
put their money and they lost it this is the danger of centralization so bit
connect super centralized there’s a litany of ERC 20 tokens that you can buy
right now in the top 50 to 100 on coin market cap that are just as centralized
as bit connect perhaps they’re not quite as ponzi in the way that they were
operating but they if one person who’s running one of these coins gets hit by a
bus and the thing goes out of business that that token is going to plummet in
value so any any kind of centralization is a risk when it comes to
cryptocurrency it’s much different than when you’re working in in the stock
market when you’ve got a company and you got profits and if one person goes down
you know the whole company isn’t going to tank these are tiny operations tiny
projects that are relying on just a few people sometimes and you’re gonna have
this same danger existing throughout the the token economy within Chris what do
you think is gonna happen a ripple with examine a ripple predictions ripple to
me in my opinion ripple runs the same risk is big connect because Ripple
tomorrow not that they would they’re our business
they’re trying to profit ripple Labs is a for-profit operation so it would be
stupid of them to just kind of disappear tomorrow but at the end of the day
you’re you’re investing whether it’s ripple or it’s another crypto coin that
has a small dev team or maybe even one developer a lot of them just have one
developer you know and you’ve got thousands of dollars invested in this
project and that one guy could walk out his door tomorrow and a tractor-trailer
could be roaring down the street and plow them over and all of a sudden he’s
roadkill and then there’s nobody working on this project right so the coin will
still exist but nobody’s going to be working on it the PR is going to come
out it’s going to be a disaster and it’s gonna fall apart so you need to think
through all the possible things that could go wrong when you’re investing in
a crypto coin and Bitcoin is pretty much the only one and I wouldn’t call myself
a maximalist but in this regard Bitcoin is the only one that has a community
that’s broad enough where it won’t run these
tiny braces all right tawanda has a pic connect affected anyone down in Zimbabwe
I know when I was in Zimbabwe there were some people who’d gotten scammed by one
coin so skin I know scams definitely reach Africa that this is very true
where what are your feelings your thoughts on on bit connect and have you
seen the effect down there and do you know about the lawsuits that are that
are going on here United States oh yes I do
everyone knows about those but it’s unfortunate for a lot of people this is
how they get introduced to cryptocurrency so especially in this
part of the world we’ve we still have a lot of people that are living on this
planet don’t ID and these people know someone who’s made money with bitcoin so
someone who drives Messi disciplines and when they ask how did you get that and
because an says I would be screaming and so these people are looking for the next
the next big cryptocurrency trying to get rich fast and in places where there
is a lot of poverty this comes tend to tend to be more
effective than in other places yeah I know some people who’ve I know some
people who put money they have advice on people to be careful with their money to
invest responsibly but yeah happens even in this part of the audience
and it’s unfortunate a lot of people get introduced to crypto this way and we
know that it bends child transfire do you have any feelings on any thoughts on
ripple I know it’s not exactly related but it is very centralized a very
centralized coin that people have been talking about a lot lately
yeah like well I can be a little bit as little better solutions
I haven’t technically in to how it works was a I’ve just not really been
interested in it because of the centralization and it being designed for
banks and like I don’t see how if you can keep a tight cheesed on the
solutions they are using now so I’ve never related interest to look into our
which works technically I’m personally more interested in the
decentralized currencies I’m especially excited by the anonymous
currencies but also composition for another day well it might be it might be
a kind of conversation for a little later on we might talk about the the Z
classic forking into uh working in to be private in a second but before we get
into that though Rick what what big connect what and ripple what are you
putting your thoughts you’ve been nodding that long as we can bring these
things up I’ve got some pretty a little funny antidote about the whole thing
because you know once the class-action lawsuit came there was an h3 h3 video
put out about it which like if you guys don’t watch h3 h3 it’s this guy does
like comedy on YouTube here and and he’s got a lot of kid followers a lot of
young young followers and um you know like I’m sitting out on my balcony that
evening just watching the sunset and this guy’s walking his dog and his
little two-year-old three-year-old kid that could barely walk and I’m hearing
those three syllables this kid can’t even construct a sentence and he was
screaming that bit connect mean like the whole way down the street and it’s just
like I think and like the guy who did the screaming this guy want he’s
apparently being approached in in in airports people are screaming at him bit
connect so we’re he’s become the next mean like I’m Rick James bitch like and
Dave Chappelle was approached with that I think it’s starting to show what kind
of level of like you’re like network effective people know somebody that made
money off Bitcoin and then they say like how where’s the next Bitcoin how am I
gonna make money and then they see this bit connecting you know this guy yell at
big connect and what’s up what’s up what’s up and to South South Florida
retirees you could just kind of see like you’re saying this people are getting I
don’t know this is the Wild West Hill but like we’re saying we’re seeing the
Lightning Network come online which is going to answer a lot of problems that
some of these guys are trying to solve we’re seeing the SEC come after bit
connect we’re seeing a lot of advancements in the way where I’m not
sure how much longer this uh this you know speculative boom is going to be
here until we start really seeing like you’re gonna have to have a
use case you’re gonna have to have more than one developer you’re gonna have to
have something else behind this stuff because there’s now some form of
framework for what an ICS supposed to be I don’t know how long that’s gonna be
but I think that’s that’s coming down the road pretty soon and you know before
you ask man by my thoughts on ripple is just like if you’re in the ripple like
you’re missing the bigger thing we’re solving here and if you’re missing that
I’d say look at looking a little bit deeper into Bitcoin and what we’re doing
here with this because there’s a big problem that’s come about in our society
from a lot of profiteering from these guys who are running Ripple and so we’re
trying to solve that problem and so if they’re trying to recreate the problem
in a different format I’m not interested in it and I think like we should pay
attention as to why we’re in this space and it’s got to do with the mutability
and censorship resistance and I mean like you know I mean like I speculate
speculate but for me like the whole idea just aggravates me because it kind of
just misses the point very very good points there and yeah I I don’t get the
point of ripple I don’t know I don’t stand by I get it’s all about
speculation that’s why people are jumping on it they treat it like a penny
stock or something like that they don’t really care about the fundamentals of
cryptocurrency but hey not everyone can care about the fundamentals of
cryptocurrency I guess let them do what they want to do they’ll learn the lesson
in the long run just as all these big connect people have learned the lesson
and you know you’re saying that they’re they they’re people who are very well
are very you know we’re associated with big connect being yelled at in airports
well now they’re really gonna be yelled out when they’re when they’re noticed by
people like your scam artist you can I it’s totally turned around now it’s
gonna be a witch hunt for some of these people but hey I mean I don’t see how
these personalities who got into big connect didn’t know what they were
getting into didn’t know that at the end it was gonna collapse or maybe they were
just too cocky and didn’t want to admit it to themselves here who knows anyway
anyway that’s it that’s a good point it’s like you know like uh
these guys they might suffer real-world consequences somebody might be so
aggravated with this one guy because his grandmother invested all our life
savings in big connects he’s gonna track this guy down and fight him and then
there’s a lawsuit and then there’s people going to jail and then there’s
other people going to jail to where there’s real life effects happening here
and with these icos so I mean there might need to be some
framework coming down the line you know it’s it will be interesting to see if
YouTube personalities we are familiar with go to jail like the first cuz we
haven’t had that in crypto currency yet YouTube personalities who talk about
these scams promote these scams we haven’t seen any of them like really
punished yet and and I’m not saying that I want to see them in jail I think a lot
of people want to see some of these guys is yeah but it that that would send
quite a message that would change that the tone of things and maybe calm down
some of this insanity over over some of these so-called projects because they’re
not big I mean you should have seen I mean you guys have seen some of the
comments that have been left on my youtube videos over the year just you
know making up excuses for big connect why it’s legitimate why it’s legitimate
and now in the end of the day we see that all the people who were calmly
thinking long term were right and god it’s it’s a messy situation and I’m
really I’m glad I was on the right side of things and told people avoid avoid
not you know I try not to talk about it as much as possible just to even say the
name gave them legitimacy at a certain point anyway speaking about you know
giving legit legitimacy to illegitimate things there are a lot of people out
there that are very very concerned about the futures market that the that these
mega that their secret mega powers behind the futures market that are
manipulating and then here today on the 26th of January there’s going to be this
miracle that’s going to happen or there’s going to be this nightmare
that’s going to happen because what one of the futures can’t
Trax expires today or something and I did notice that the price of Bitcoin
just did ramp off back a little over 11,000 again again I don’t care about
minute-to-minute price differences that much but people are bringing it up so I
I know Chris had an awesome tweet and this is how I found them you know
talking about the price how we have to get used to these incredible price drops
and you know why worry about why their cost I mean their calls for mostly
irrational reasons it just we have to think long term so Chris it’s starting
with you what’s going on with the futures market are you worried about it
and what are some price thoughts on your end the futures market I don’t think
anybody really knows yet what kind of impact it’s having what we do know for
sure is that since it launched we’ve seen some weird stuff right so people
are starting to guess maybe it’s doing this or maybe it’s doing this at the
same time we’re seeing you know potential things happening from South
Korea we’re seeing other governments getting into the act we’re seeing tether
doing all kinds of weird stuff so there’s so many things going on at the
same time that I don’t think that we have a way yet to isolate what impact
the futures market is having right but the the essence of the tweet that you
mentioned was really it was about you know basically what I was saying was how
are you gonna feel you know we dropped from 19,000 down to 10,000 at nine
thousand dollar price drop how are you gonna feel in six months when we dropped
from 50,000 down to 30,000 a twenty thousand dollar price drop how are you
gonna feel in one year when we dropped from a hundred thousand down to sixty
thousand a forty thousand dollar price drop nine thousand dollars is gonna seem
like nothing compared to where a lot of people think we’re going with the price
and if the futures market is having an impact right now it’s going to lessen
the more volume the more mark the market cap of Bitcoin increases right because
they can’t have the same impact in a year from now that they can have now in
from more people companies government’s just
money comes into Bitcoin so I think it’s something we do need to get used to the
price swings have always existed I started really investing in earnest in
spring of last year and you know right away we dropped from $3,000 down to 1800
and I was negative on my money and I’m thinking oh oh ship right and then you
know fast forward to now the same thing happened people came in at 18,000 19,000
we’re down in 1011 thousand it’s gonna keep happening every cycle the
difference now is we’re getting more and more people who are more in it for the
investment profit and less in it for the the principle the libertarian aspect the
economics at Bitcoin so that’s going to be the challenge going forward also did
you have one more year a time comment you want to say about ripple yeah my
comment there was just about the fact that sip sort of like what I just said
most of the price action on ripple has come from people seeking profits those
people are going to continue to grow in percentage as it’s a percentage of the
total of investors as opposed to two years ago the number of people that were
in Bitcoin for profit was probably a smaller percentage than the number of
people who are in it for the technological aspects for the Liberty
aspects for the way that it was going to change banking and all that kind of
stuff as time goes on the the percentage of people involved in this ecosystem
that are in it just for the gains is going to grow and grow and grow and I’m
really confident people like us and like people in chat right now are outnumbered
already the only thing that is going to win those people over is either gains or
convenience or they got a benefit somehow economically and with things
like lightning at work and other improvements that Bitcoin is going to
make we need to we need to make sure that Bitcoin and decentralized
cryptocurrency –zz become the most convenient become the best for the
average Joe and you know become the cheapest and the gains as time goes on
10 20 years from now I don’t think we’re going to be thinking as much about games
as we are about convenience and you and adoption so that’s what I wanted to
say about ripples Oh awesome awesome there it’s the 20% of the 80% you’re
very much you’re correct we are very much outnumbered here the the the
national are very much outnumbered by the irrational and the impulsive you
want one real quick thing you mentioned ripple a lot of people a number of she’s
tether you mentioned tether and someone just
asked me about tether in the comment section I I don’t talk about tether very
much what are your tether thoughts real quick I’m terrified of tether I think
you know that that tether tether claims I believe you know and I don’t claim to
be the expert on this but I believe they claim to have one dollar for every
tether somewhere stored right and then we see them printing hundreds of
millions of tether and there’s patterns now that are being looked at and I’m
seeing tons of data on Twitter that’s starting to bubble up about what happens
right after tether prints a ton of new tether right so the fact of the matter
is that if I you know sell 10 thousand dollars with the Bitcoin right now I can
get $10,000 worth of tether right away is there really ten thousand dollars
backing that tether up is question one question to is does it matter is tether
just another ship coin you know it’s interesting how the scrutiny on coins
that claim to have backing like tether is so much more than coins the rest of
the coins which claim to have zero backing right so every other
cryptocurrency doesn’t come out and say we’re backed by anything but the
valuations go through the roof tether says we have a dollar pair of each other
and everybody wants to know exactly what’s going on so the promises made in
the beginning is really the biggest problem so there’s a big potential for
for serious problems with tether I think most of its going to be around public
relations and just fear creating fear in the market if they do somehow get
exposed that was a really good point about tedo compared to the other
they’re all coins it gets a lot more questions than these these other guys do
they’re very very interesting but I know uh Rick you’ve got a lot of things to
say but I want to get to tawanda real quick so remember everything you want to
say tawanda with the futures markets are you do you care about these futures
markets here is that a do you think this is affecting the prices is something
you’re concerned about not so much and so like also goes back to what I said
any other in this part of the world we tend to think difference of future
currency so not so the use case is not as big 4-stroke value as it is for
payments and so what more excited about the ability to buy it just in time to
make a payment somewhere else so we don’t care too much about the price
abuts is a good use case for using it as a store value because african
cryptocurrencies are very inflation at infinity for a tell so all over the
continent so the money we use is very very volatile and very inflationary and
so so cryptocurrency also makes a good use case for using it
as a store value here but the need for payments is just huge and so a lot more
people not buying it’s just time to make a payment somewhere else all right Rick
your thoughts on futures and everything that yeah you’ve been bubbling up to say
there oh here’s to you know I mean like I’m
not really that worried about it just because I’m not sure how much the CMA
futures is having an effect on the price I think that the price is uh you know
got a lot of different variables into it and to say like it’s one thing I don’t I
don’t know how much that one thing is gonna affect it I mean maybe for the
time being but not for long term like we’re saying and I mean you know this
morning I was just kind of looking over the charts just to see like how long did
we dip below 10,000 and it wasn’t even a few hours because like that’s one of the
things that I was you know kind of curious about whenever a you know
looking at the charge was just like what’s the buy and pressure gonna be
like under 10 because like I think a lot of us like long-term guys that are
thinking about this sort of know like the long-term value proposition of this
and like under $10,000 does seem like a good enough
to where you know maybe people will start going grab some loans to buy some
Bitcoin people that are in the know and uh you know I mean like maybe we do drop
down for a little while but I mean for another support level but I mean like
we’re saying long term picture of this thing is uh nowhere near where we need
to be this is uh this is still early as far as the price goes is how quick are
we gonna move up I mean like we can judge like you’re saying from last year
or whenever you know it was twenty nine and it dropped to 18 and then we were
all the way up to eighteen thousand I mean like and that was all within a
pretty uh not even a year I mean maybe like eight to ten months and um you know
I mean what can happen if all of a sudden you know a lot of icos
disappeared because there’s a legal framework and lightning networks are
coming online that are using real world use cases and people will start pouring
those dollars back into Bitcoin and what could that do to the price I mean
there’s a there’s just definitely a lot more room to go up into where when I
look at the price I’m usually just looking for a good place to get in
because yeah I still see as needing to be somewhere in the millions for just to
control the volatility and the amount of marketplace activity that will
eventually occur on Bitcoin network and you know like the tether thing is
interesting like you’re saying as far as like they’re the ones that are getting
pinned out and I think it’s got a lot to do with that like value targeting the
dollar and just like you know they’re the only guys that are trying to do that
and I you know that’s where it’s also like I see their point you know it’s
like they need a bunch of people to try and figure out how to get into crypto
that are not you know too savvy about it and they want to understand it it’s like
well here we’ve got this thing for you to easily understand when you put in a
dollar you’re gonna get a dollar at this tether thing and then you’re gonna you
know move it around and then you’re gonna move from exchange to exchange and
do what you want to do and and I mean like there’s some people that probably
get that a lot better than trying to arbitrage Bitcoin and stuff and I could
see like where they were just trying to serve a market but like you’re saying
you know it definitely puts them in a spotlight and you know it’d be a you
know in seem to see how that’s all gonna go I
think you’re right it’s a lot of PR trouble for him but um you know might
shake out well might not it’s still up in the air you know last time you were
on the show we’re talking about tether also so it’s interesting it gets it gets
brought up again I didn’t I didn’t really plan we’ll talk about it today
but it is interesting I mean it’s still in the news that it is a PR thing it is
the of all the PR issues in crypto that that one is probably the largest one was
they had to fight a lot of speculation in a lot of rumors and they’ve done an
okay job of it I guess every everyone we’re getting toward the end of the show
now so pound that like button the guests are gonna talk about you know their
stories of the week or anything that I’ve left out let’s start with you two
one that was we started the show with you uh what did what am i left out here
what other things you want to share you know you can see any stories that I’ve
left out anything you want to say about Zimbabwe anything if the floor is yours twanda your you don’t need to want okay
there you go okay just I muted it well we’re just to say that the the
cryptocurrency space is too very young especially in Africa and so were running
an exchange in Zimbabwe probably the only company so so the only at least one
other company so just two companies doing all the education like in the mode
of stuff like trying to build a number of solutions so we just focusing on one
so so tends to be a lot harder to run equal to current company this part of
the world in Africa of 52 countries is only three or four countries that
exchanges so there’s still a lot of potential all over the continent we
don’t have a lot of people building solutions this part of the world yeah
man there is huge potential there people that’s that’s the lesson and I will be
there March 5th to the 12th all right I will I will see to Wanda down there in
South of South Africa I will be in South Africa with and so it will be awesome
and hang out again y’all go some to the notes are getting a month you’ve into a
few countries and after that to is well you
yeah you’re still doing it been queuing Zimbabwe hey that was yes tawanda and I
stood in a line in a bank line in Harare Zimbabwe I got to experience it it is it
it’s definitely the experience I will never forget and you personally see how
they they did the bank system there is horrifying it’s it’s horrifying when you
see men standing in line and then they can’t get their $50 cash and then they
just sleep there you know until the next day to get there you know they didn’t
get it that day so though they have nothing better to do so they got a the
need for 50 bucks so you gotta wait till the next day and sleep somewhere out
there it’s it’s this is real stuff man it was real stuff but it’s hey anymore I
can go down to Zimbabwe and see this for themselves I recommend that people visit
isn’t Bob way it was an interesting time – I’m gonna take you around all right
let’s go to Rick like what are your some of your closing thoughts and some things
we’ve skipped any any stories you want to share yeah I’m just a closing thought
there on that about Zimbabwe it’s just like you know I think it’s important you
know because like we’re doing all this heavy speculation in the space and a lot
of money’s being made that you know a lot of this money go towards these real
future applications that are gonna help situations like that over there it’s in
Bob way cuz you know the amount of liquidity there to test these markets is
not as much as here and I think it’s important to test these things and I’m
you know I mean like I like we were saying earlier I wouldn’t recommend
anyone just go in and use them lightning right now but um you know like I think
it’s important to invest in all these things because we need to get these
problems solved and you know they usually do happen you know somewhere in
the United States and then sort of spread outward and I think it’s you know
we need to focus on that there’s big problems out there and just a final uh
you know statement is like you catch our block digest show tomorrow I think we’ll
be on at 12:00 Central Standard Time and I think we’re gonna go over a the BTC
threat model on insecure side chains and the possibilities that that might have
on a Bitcoin and you know I’ll plug the BTC threats com
you know that’s a that’s our guy JW weathermen and he he
runs that and is always looking for new threats and the threat models and you
could help him out with that and we got our meet up coming on February 1st here
in Boulder Colorado if you’re in the Colorado area and you’d like to come to
this meet up I’m gonna be putting together this presentation to show how
we could socially integrate Bitcoin and lightning networks to actually change
the way that people move throughout society in a way that is uh is effective
for things that we need there’s lots of problems here and that you know they got
a lot of things going for them here in Boulder but they do have some problems
here with traffic and I you know it’s like how could you how do you control
traffic and like and parking and and you know and the way that people commute and
how would you use Bitcoin and lightning networks to change the way that things
are done with multi SIG’s and communities of different groups that are
self-governing their own ways and I think this this is really important if
you’re in the if you’re in the Colorado area please come to that Meetup and we
can try and pull together our Bitcoin resources there to create an actual
model for other governments to integrate into their systems to where that they
could see that you know you could create a solid foundation on Bitcoin and second
layer solutions to create a real accountable economy yes check out block
digest I’ll link to them below I went to all these guys links below and of course
I will be in Boulder Colorado on April the 25th and so we’ll talk about that at
a later date all right Chris you’re gonna you’re gonna wrap it up today what
it would have I left out anything you want to add thoughts comments take it away
yeah just two closing comments number one is don’t hold tether if you have
tether and you’re holding instead of dollars please don’t hold tether put it
into Bitcoin put it into another crypto because a lot of people think it’s
inevitable that something is going to go wrong with tethers soon and if it does
you don’t want to be holding that stuff number two closing thought is is
something I’ve been tweeting about a lot is it’s the higher the price goes of
Bitcoin and other cryptocurrencies the bigger the price once we talked about
that the bigger the price swings the more of
an emotional toll it takes on a lot of people right so not everybody is in this
game with the firm understanding that we all have of the technology and the
inevitable growth a lot of people are in this they’re buying at eighteen nineteen
thousand it’s dropping down they’re losing hundreds of thousands of dollars
you see the big connect folks who lost money who probably weren’t in this whole
game for the decentralization aspect you know it’s it’s an emotional thing and so
I just wanted to throw out there please like we’re all brothers in this and
whether it’s Twitter reddit or any these other places you got to remember there’s
a human on the other end of the screen and that person could be in a really bad
place right now so let’s be kind of each other out there good point there are
some people that are very down because of things I encourage everyone to have a
strong hand it will get better hold your Bitcoin and again I interesting point
about tether yeah you should be hit if you’re holding tether
it turning the Bitcoin come on people turn it into the turn of the Bitcoin
that that’s that’s your safe space in cryptocurrency not not something that’s
associated with the Fiat dollar just if you you’re getting the cryptocurrency
why do you still want to be associated with the dollar in in anyway anyway
anyway thanks a lot to the guest round the world guest I really appreciate it I
of course I’m in Taipei Taiwan it is is late at night here I guess it’s 12:30 at
night saw I’m going to sleep soon but again thank you everyone thank you for
all the live viewers pal that like button
I’m animation the bitcoinmeister the disrupt meister remember to subscribe
this channel like this video shows you check out the notes section below we do
this week in Bitcoin every Friday and of course I post a new show here every
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please

6 thoughts on “This week in Bitcoin- 1-26-2018- Zimbabwe, Lightning Network, Bitconnect Lawsuit, Robinhood”

  1. Sorry Adam but the space in jail is reserved for the politicians for the foreseeable future. 🙂
    First I want to see some realy famous politicians like HC or in Europ AM in GITMO.
    Than if there is space left, than the social media people who lured others in to bad deals.

  2. Another great video from the best bitcoin content out there. I’ve got a bottle of champagne ready for when futures becomes dwarfed by the lightening revolution. The only thing that’s popping in my crypto world is that cork when those Wall Street bastards get owned! If you want to ensure that happens then buy and hold
    that pin and POUND THAT LIKE BUTTON!!!!

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