S3 E42 | Back to Blockchain

S3 E42 Back to Blockchain

Discussion topics in this episode:

  • Today we nerd out and share the latest information we’ve been following in the growing world of blockchains and the so-called web 3.0 built upon them.
  • We review what makes up Decentralized Finance (DeFi). Essentially imagine all of the forms of finance that consumers and businesses use on a regular basis today, only with higher returns and no regulation… yet. Literally a digital wild west gold rush that’s only available online.
  • What it could mean that centralized finance (NYSE in this case) is offering crypto futures starting with Bitcoin. We can imagine Ethereum (MVP promises to pronounce this correctly in the future) will be next in somewhat short order. Perhaps a more solid price floor could be established based on traditional exchange investor dollars. However, that would require some kind of faith because what we know of crypto prices is volatility.
  • What on Earth is the metaverse? Massive multiplayer online universes – think World of Warcraft, Destiny, SecondLife – with decentralized ownership and governance and possibly a lot more. Pretty much the opposite of anything that may come from the likes of Meta, a company formerly known as Facebook.
  • Non-Fungible Tokens (NFTs) are verifiably unique, one-of-a-kind, addresses on a blockchain. These addresses cannot be duplicated within a blockchain. The address can contain a key for many things, like digital art, contracts like property deeds, music, and other file types including programs. The blockchain can be setup to handle all the transactions for change in ownership of these unique addresses and the collection and dissemination of royalties to the creators on every re-sale.
  • Decentralized Autonomous Organizations (DAOs) are an embodiment of the beloved decentralized nature of this new blockchain internet of things. These organizations are typically made up of a group of members that is determined based on ownership of crypto coins or tokens. DAOs can be formed for many reasons, some yet to be known, but so far they are mostly responsible for governing change to blockchains over time including financing and implementing upgrades. This includes voting as a community on enhancements, changes to protocols or rules, adding new features, etc.
  • Here’s a Coindesk article about legislation passed in Wyoming, effective July 2021, that recognizes and provides for registering a DAO as an LLC.
  • Calls to Action:
    • The best way for many of us to learn is by doing the thing. So if you’re thinking about playing with crypto, only spend money you do not need when scratching this itch. Treat it like an unregulated casino. As such, your somewhat least risky move may be to investigate reputable exchanges that service customers in your country.
      • As such, your somewhat least risky move may be to investigate reputable exchanges that service customers in your country. Most exchanges has a specific service for the United States due to increased regulatory requirements. Popular platforms include Coinbase, Kraken, Binance.us, Gemini, others.
      • However, you won’t necessarily control your blockchain keys when going through an exchange. If you want to buy and hold and keep it secure, check out other hot and cold wallets for storing your own crypto keys. Here’s a short article from Blockchains101.com.
    • Do your research. Some cryptos are born as scams and some become scams over time. Only you can prevent losing your money, so keep your research and your positions fresh.
    • Time will tell, but there is a real possibility that some of these cryptocurrencies will prove to be good hedges against inflation, wars, and other geopolitical happenings that impact national currencies. Web 3.0 may prove to be massively more valuable than our current version too.

 

 

 

 

 

 

“May knowledge show the way” image by Serge Shop.

Voices

  • Michael V. Piscitelli
  • Raymond Wong Jr.

More info

  • We have transcripts are located at the end of each podcast episode’s page on our site. Check it out, but know this: It’s all AI. It’s not us. So thank you in advance for forgiving any and all errors.

Disclaimer: The opinions expressed on this podcast are for listener consideration only, are not financial advice and are not necessarily those of the show or its sponsors.

Special thanks to

  • Our ongoing supporters, thank you!
  • Our sponsor CitizenDoGood.com .
  • Intro music sampled from “Okay Class” by Ozzy Jock under creative commons license through freemusicarchive.org.
  • Other music provided royalty-free through Fesliyan Studios Inc.

Transcript

The following transcript was taken using AI technology. We cannot vouch for its accuracy. Read at your own risk. These are time-stamped from the day we recorded and unfortunately not name stamped.

Citizens Prerogative Podcast Closed Caption Transcript
S3 E42 Back to Blockchain

17:54:07 In times like these, being a citizen is a big job. Thank you for joining us to celebrate the virtues of self rule and debate the state of our republic.
17:54:16 Welcome to the citizens prerogative podcast. This is the voice of your nerdy host Michael Pisco Telly and we are blessed with a co host whose passion for our republic precedes him everywhere he goes, Raymond long Jr.
17:54:31 Thank you. Thank you, it’s back to life back to the blockchain.
17:54:36 Hmm.
17:54:37 We’re in season three. This is episode number 42. And that’s exactly right right we’re going back to the blockchain.
17:54:48 So we’re going to nerd out a little bit today and share the latest that we’ve been following in the growing world of blockchain. And we know you’ve all been hearing a lot about it so we want to pull up on our perspective on the latest findings information
17:55:05 debates, and that are ongoing so we’re excited to dive into it, and we’re gonna do.
17:55:12 We’re gonna do a full survey. We did a pretty decent survey. Last time we cover blockchain but now we’re going a little bit deeper, and we’re going to touch on everything.
17:55:22 I mean we’ve only got 30 minutes but we’re still going to do it anyway.
17:55:28 So the first thing we want to throw out there is a disclaimer. This is not financial advice.
17:55:35 Never has been never will be. We don’t give financial advice.
17:55:39 But we have opinions and we love to share them. So, what you decided to do with any of this information is on you, and we wish you luck.
17:55:52 So, let’s start. Let’s start our survey with the world of decentralized finance I think this is a quick hit for us, because it’s the concept that has the best existing kind of example out there in the world today.
17:56:12 For most people, but not for all people.
17:56:15 So let me do a quick rundown on how I see the world of decentralized finance today.
17:56:22 Today you want to get a loan or deposit cash and an account and maybe get a decent interest rate let’s start with depositing cash. When you love to deposit cash in an account and get a decent interest rate while the bank sits on that money well they’re
17:56:36 not just sitting on it, they’re lending it out and they’re making money on the interest spread, right, because the interest you pan alone is always hired in the interest you get paid in the checking account, and there’s a reason for that they’re related.
17:56:47 in the world of decentralized finance they’re trying to attack.
17:56:51 Some of these constraints, but they don’t even have to attack the constraints directly because just the function of a decentralized finance blockchain gives them the opportunity to do whatever they want.
17:57:06 Part of the reason is because none of this is really regulated at all right now and we’ll talk a little bit more about that as we go through it.
17:57:14 But just to pull it back to defy defy is decentralized finance for short.
17:57:20 And now we have plenty of options you can go buy a cryptocurrency and let it sit in crypto exchange, or you can do it real fancy dancy and put it on a you know a physical drive where you own the keys and you find another place to deposit your money for
17:57:35 the time being your crypto, and you get a return you get an interest rate right now a lot of the interest rates out there depending on where you park your deposit.
17:57:45 512 20%, I suppose, I don’t have a list will have to come up with a list but there’s a lot of other coindesk and all those other sites out there that cover all that stuff it changes so fast we’re not in that business.
17:58:02 But just know you have an opportunity to do that now. When you buy a cryptocurrency it’s not cash. And it’s not guaranteed to retain its value it’s, it’s very casino like it’s very investment like.
17:58:16 So you have to be careful there.
17:58:19 But that’s just one really simple example right you make a deposit you get an interest rate, also the loan piece of it.
17:58:26 You know, if you have a bunch of cryptocurrency, you can get alone against that cryptocurrency, and you can get it probably for a better rate than you can get a loan from a bank.
17:58:35 So those are the real, I would say consumer facing oh and transfers right.
17:58:41 We don’t we haven’t seen a good use case yet for payments. Right. I think the, I think the big one right Mike is the pic. I think what the consumers are missing is that there is this huge industry of payment processing, you, they’ve made it so seamless
17:59:00 for you.
17:59:01 It’s become so centralized in so many ways that you really just don’t notice how all of this activity going on is generating boatloads of revenue for the banks right and the banks are lending out your money and getting a much larger return than they’re
17:59:18 providing you and so that’s the idea is that competition. at least that’s what we think in a, in a good capitalism competition is a good thing right so decentralization makes us compete with the banks and I, and I know it’s more complex than this but
17:59:32 I do Imagine a world where, if I want to set up my own bank it’s going to be much easier due to blockchain technology, because the scaling of the setting up that contractor that digital contract with individuals will be easier, and it will be more peer
17:59:48 driven, so I’m not saying that everyone can go start their bank, but frankly back in the day before big banks, you would bank with your merchant, you would bank with your pharmacist, you would think, with the local, the grocer folks we I think it’s a
18:00:05 decent define, to me, Michael is really that coming back that my groceries like yeah I can trust you. I’ve got a connection to your digital wallet right, you’re good for it.
18:00:18 I like that idea. I like how you bring that home to the real world.
18:00:22 And it’s funny I love, I always loved the historical perspective you bring because I hadn’t even thought about it. Can you imagine back in the day, you know going, hand in hand, or whatever the phrase is to try and get a loan from JP Morgan.
18:00:36 The guy.
18:00:37 Right.
18:00:41 Back then, back then you, you didn’t you had collateral if you walked in the banks were very starchy, they were huge marble columns intimidating. And if you didn’t have collateral if the bank.
18:00:49 The bank wasn’t interested in giving you money unless you had money first which is kind of the issue we have with our current system right self defeating.
18:01:02 Yeah, and the credit bureaus again. I think that’s another challenge just to say centralization has given us the credit bureaus which we all know, know, have not done well with their power or been responsible with our credit files, if you will, I do think
18:01:17 blockchain opens itself up to replacing this entire system, essentially, because we do not have to rely on gatekeepers that’s what I want to get these payment companies, these major banks right, they’re all gatekeepers of the payment networks, and they’re
18:01:33 all gatekeepers to your financial well being your financial ecosphere if your will and blockchain again, the more I research Mike, it looks like it just frees you from it, that you can build your own financial profile, and frankly asset base, completely
18:01:49 free from the current system. but again, I digress, there’s risk. Right.
18:01:56 Exactly, yeah. The Asterix there is with risk with some risk with a lot of risk it all depends depends on where you put those crypto goes.
18:02:05 It’s also new to it’s like you know it’s still a very much about a Cambrian explosion of options and some of its really shy story.
18:03:09 last note I’ll make on decentralized finance so you know payments we’re going to see how that’s eventually going to shake itself out and payments like you said is really the most direct competitor to the established finance ecosystem when you talk about
18:03:26 the federal reserve the banks, the payment networks may Stroh MasterCard, Visa, blah blah blah HSBC
18:03:36 payments is it’ll be interesting to see how that gets resolved. But in the meantime, you can get a nice return on your deposits, you can get loans for cheaper rates.
18:03:46 And then there’s, there’s a whole world that isn’t present to consumers in the world of finance and it has to do with how we execute international trade, how businesses conduct business with, you know, suppliers and all the way down to wholesalers etc
18:04:02 and so there’s this whole behind the scenes operations of finance, that will also be taken over or will have competition from decentralized finance letters of credit trade credit.
18:04:16 I mean, all of that stuff can be automated on the blockchain. It is there are companies that are doing it right now in the D five space. So, you know, these the entire.
18:04:26 The entire existing system is got competition now from central banks to big banks that are too big to fail to little banks, all of it, like has this entirely new alternative system for the first time in the world.
18:04:40 And it’ll be really interesting to see how everybody rises to this challenge because it’s a it’s a fair challenge.
18:04:50 And the right.
18:04:51 And it’s ripe, because it’s because the end the fight is the old fight PayPal, is there, you know, providing the ability they early on, they were allowing people to buy cryptocurrency so if you’re a PayPal user, you have the opportunity to use that service,
18:05:08 I believe, and you can go in there and I think you can pay through PayPal. Now I believe then mo is also providing a crypto service where you can get your rewards and crypto, and so they’re kind of bridging this gap and payments Mike it’s, it’s these
18:05:24 non traditional banks that are giving in the hey by the way, you can pay with the crypto you’re not technically paying with crypto, they’ll convert it to the USD right but it’s starting to bridge the gap and soon.
18:05:36 I think especially the younger consumers won’t know the difference between crypto in our currencies standard currency.
18:05:45 They’ll be fascinating.
18:05:46 Especially because the access the equalization to access.
18:05:52 All you need is a phone.
18:05:54 Literally, for the most part.
18:05:59 You only need a phone to access any of this stuff so it’s pretty pretty amazing and so the Starling satellites are going up and whether you you know whether whether the world gets internet or not, you know, the world is getting phones for sure.
18:06:12 I digress.
18:06:13 So I think we’re going to leave decentralized finance.
18:06:17 That was a nice, nice cover on it and send us any questions you have.
18:06:28 The only other thing I want to bring up before we go to a break to is to close out this concept about centralized finance kind of getting into the getting into the game and it’s, if, if you didn’t feel like blockchain and anything built on blockchain
18:06:42 had any legitimacy before, and then Coinbase when public right on NYS here NASDAQ or whatever.
18:06:51 And then that added legitimacy and you can see certain bumps and values associated with those things and one of the latest things that had happened was, I don’t remember the name of it now but there’s a crypto future crypto future fund that you can purchase,
18:07:08 you know, on, on the normal exchanges, normal exchanges what’s the word stock investments. They don’t even know now.
18:07:19 What do you call it, go to your available in new york stock exchange for thank you yeah NYC one of those guys. In any case, so now there’s you know funds available that are trying to give people exposure to the upside potential upside of crypto without
18:07:36 actually having to weed through the details the research of knowing which ones to own right which ones are scams which ones are real deals which ones are most likely going to increase in value because they’re delivering a truly valuable service.
18:07:52 So it’s exciting because that’s a whole different level of legitimacy, now you’ve got these investment bankers on wall street that are getting paid to do investments in crypto.
18:08:03 And you’re going to see tons of money moving into crypto so you know if you don’t, if you didn’t buy a piece of crypto when it was less than $1, you know, those of you if you’re playing the lottery on crypto you’re looking for the cheap ones, but you
18:08:16 should also do it smartly, you can always still make money I mean look, if you bought. What if you bought Bitcoin at 40,000 and now it’s at 6060 something, I may come back down.
18:08:27 But you know, it’s, it’s crazy how volatile it is, but I just want to throw out there the idea that did it is steadily increasing and legitimacy by the old system, they realize the threat.
18:08:38 Even the big bankers have changed their tones.
18:08:42 So, you know, it’s it’s here it’s the future, we said it before, and that’s, that’s not changing.
18:08:48 Now’s the time to learn about it.
18:08:52 I think with that, unless you have something to add Ray we can take a little break.
18:09:04 Time for a message from our sponsor citizen do good,
18:09:09 fulfilling a dream, we’re all possessing intrinsic love for self rule that is reciprocated with free speech and equal justice under the law.
18:09:19 Citizen do good values the promise of all the amendments to the Constitution, along with the original core documents, taken together they form a framework and an operating manual for the republic that provides us with the means to change with the times.
18:09:34 The time is now to deeply re examine our current implementation of governance for the dawning of a new day. A crypto day, a blockchain day.
18:09:45 A metaverse may be.
18:09:48 We are the proud sponsor of citizens prerogative podcast, a major partner and spreading the good word about civic club, and the power of change first all
18:09:58 at citizen do good we want to empower all citizens to participate in the republican or reconstructive way with that goal in mind, we need your help to stay on mission and grow this community.
18:10:10 Please rate the podcast with five stars on iTunes through the app on the web or on your device. If you don’t feel like you can give us five stars let us know why and our sponsors Facebook page citizen do good.
18:10:23 Also make sure you join our newsletter at CES and do good, calm, you’ll get updates every couple of months on all of our antics not just the podcast.
18:10:31 While you’re there, check out the shop, which has specialty merchant provides a way to make a one time contribution that helps us pay for production and for hosting, feel free to share any suggestions you have directly through the Contact Us page.
18:10:44 thanks for your support.
18:10:48 I know the world is changing.
18:10:52 I know that the, what we know as the universe is not going to be as it was we’re going to try to expand the universe, if you will.
18:11:06 I have witnessed the move that the metaverse is making what are they called met us excuse me, Zuckerberg is out there making his strategic move into the metaverse and I’ll say I support it because he’s more attractive and personable.
18:11:23 In the metaverse from what I’ve seen of the renderings. So, but I think that’s the big thing change right this this new world where Mark has a personality is also going to render, you know, other things that we didn’t expect like these non fungible tokens,
18:11:42 or artwork, right, that we can purchase and keep ourselves, only in this metaverse next to Mark’s personality. So, like, help me understand my, like, what’s it gonna look like.
18:11:55 Oh goodness gracious I need to pull it together Thank you for comedic relief Ray.
18:12:01 Yeah, I mean, I guess, I’m going to go old school, and be like, well, I feel like he’s, maybe never heard of AOL, I didn’t you never heard of America Online or coffee servers, and he those, you know, old school walled gardens.
18:12:22 Now, Facebook made a name for itself, no pun intended, but because of the way it allowed people to interact
18:12:32 and present information and you know maybe there is a low bar to entry or easy on ramp or something like that, but there isn’t anything about the metaverse that has anything to do with Facebook or Mark Zuckerberg, I think he sees the writing on the wall.
18:12:49 He sees if Facebook’s going to survive.
18:13:04 They already know youth youth are not signing up for Facebook, so I think Facebook’s going to be put on a pastor meta is going to be its attempt to create the new walled garden centralized connectivity forum where we’re all the product.
18:13:14 Right.
18:13:16 Which is exactly the opposite of the ideals of blockchain and decentralization and all that stuff right they.
18:13:25 I won’t say democracy, it’s not.
18:13:28 We’ll talk more about it. I don’t see anything democratic, necessarily.
18:13:40 But back to the metaverse so the metaverse web 3.0, you may or may not have heard that phrase but it’s coming into its own web two point O is what we all live in today and operate on web one point O was dial up and compu serve in AOL.
18:13:58 So now we’re moving into web 3.0 which is much more, you know, blockchain oriented, because the capabilities, there are so different and exists outside of, like, whatever the standard system is for assigning IP address, I can or whatever the name of it
18:14:19 the international group that’s in charge of assigning IP address to URL name so like facebook. com right.
18:14:27 There’s similar activity that’s starting to grow like a, there’s an entity that is getting established that’s going to help create name mobile locations in the metaverse because right now.
18:14:39 Meta versus very electronic it’s very digital ones and zero like I mean when you’re trying to access things you have to have special browsers and you know it’s like, it’s, it’s tricky right now it’s not very accessible so Facebook’s play will be to try
18:14:54 and make it accessible, like and then people will join meta. The Facebook meta, and maybe they will think they’re in the metaverse, and they’re not at all.
18:15:06 They’re in a very specific location in the world.
18:15:10 So for our, our technical friends, they’re trying to create a gooey, which was all AOL was the AOL, and I’m finally making more sense of it now yeah well all they did is they created a cover and overlay, and environment for us to visit.
18:15:26 And I was really I was really, I mean I guess I was just a kid but I had no idea I thought just clicking on those buttons and keywords were the internet like somebody had to tell me that you have to travel outside of to this mystical area, with very interesting
18:15:40 things.
18:15:42 And that is, that is the exact situation. Excuse me.
18:15:49 That’s the exact situation that we’re in now with web 3.0 with the metaverse with.
18:15:55 I’m going to back up.
18:15:59 And that’s the exact situation that we’re in right now with the metaverse with NFTS with all this blockchain stuff. It’s in this, it’s kind of in this whole other ether of virtual technology environments right it’s, it is, it’s very much it’s separate
18:16:17 thing, and metaverse is coming into its own initially right now with games.
18:16:24 There’s a lot of like, I can remember some of the names like xe infinities are very popular name right now, but there’s you know games that you can go play and you can purchase armor, or you can purchase a house or you can buy land like there’s there’s
18:16:37 a metaverse out there where they’ve replicated the earth, and every plot of land on earth is available for sale.
18:16:44 And it’s all controlled on the blockchain.
18:16:48 The fact that metaverse is just this interactive space it’s like World of Warcraft for the first time it’s just you know we always had video games and stuff like that but we didn’t have this immersive environment where everybody in the world can log on
18:17:02 and go play together.
18:17:04 That’s the metaverse. So right now it’s a video game or it’s a Minecraft. Right. I mean, that’s honestly that’s the analog.
18:17:15 If you go with like Second Life, which I guess in life a lot of people are talking about right this is the new Second Life so now he he obviously didn’t see AOL, or second life from Sony, because it’s appears to be very similar so what what makes them
18:17:30 that or what makes us think that this is going to work compared to those Second Life environments. Is it because we already have so much evaluation in the NFC market already and such.
18:17:40 it’s just, it’s so big.
18:17:42 Yeah, I mean I’ll go back to the Cambrian explosion, everything is getting thrown all the spit balls are getting thrown at the wall and who knows what’s going to stick.
18:17:52 So I mean, as, as a new crypto investor I’m reluctant to purchase coins associated with these metal versus game systems because I don’t play the games.
18:18:06 The point, the coin is more valuable if I was going to play the game and I wanted to buy things if I want to buy armor land, whatever, then it would be materially more valuable because I’m not plugged into the game, I don’t, I don’t have a sense of the
18:18:19 value of the coin associated with there is a token.
18:18:23 So from an investment standpoint, you could you can go buy that stuff but if you don’t go spend that coin in the metaverse for which it was Bill, then I don’t know if it’s really an investment per se, but that’s the financial side of it.
18:18:40 What’s going to happen with these things is, people are going to have an abundance of choice just like every year or every couple of years brand new video games get released by Microsoft vs intend to vs whoever, and they don’t know which ones are always
18:18:55 going to be the winners, this is what’s happening and blockchain metaverse right everybody’s releasing their things are not sure who’s going to get it right, like who’s going to get it right technically business wise and then also supply a product or
18:19:07 service that the universe needs.
18:19:10 So there’s just a lot of question marks right now, and a lot of opportunity because basically web point web three point O is reconstructing everything we’ve ever known electronically.
18:19:22 But building an on blockchains instead.
18:19:25 And it’s just, it’s fascinating to be witnessing all of this right now.
18:19:44 Facebook has a lot of money. So, you know, if they create something really amazing cool that people feel like they can’t live without.
18:19:51 Then they may be successful.
18:19:53 If they find a way to get people addicted from the inside then they might be successful.
18:20:01 You know, I just don’t know what value, Facebook is going to be able to bring as a centralized monolithic organization run top down, that the diversity right of these people creating all these other metal verses are going to bring to the table, I just,
18:20:18 I’m skeptical. Does that make sense.
18:20:22 The resources right that’s all they have there’s no one else positioned well be outside of the government. Right, so the government itself but we don’t know if we can trust the government to implement something that big.
18:20:32 The government itself is positioned to fund that but what I worry about is, let’s let’s wait into the risk a little bit one of the risks I feel from this all is is Mark, taking the metaverse and and Jeff is taking the space, you know, is it Are they kind
18:20:58 of going for their own regions are they trying to take the next next level, or the next economy we, we already spoke about economy to you know the new economy, and they’re trying to say this is the new economy.
18:21:05 And I think that’s one of the problems we have folks is that the we these barons tycoons should not be leading us into the new economy. They should just be part of it, but not not driving it right so succinctly participants and and these and decentralization
18:21:24 and blockchain enables us back, you know, back and when because they they’re not, they’re timid, you know, Ilan has a very odd relationship with cryptocurrency.
18:21:34 So I would say there.
18:21:36 It’s still.
18:21:38 They’re not even sure about that game, because I don’t even think they have control of it like they would like to
18:21:45 know and until we’ve solved the energy problem all blockchain and crypto could be gone tomorrow.
18:21:52 I mean computers in general that would be a problem.
18:21:56 But you can still make gold, whatever you do to make gold valuable as a coin, right.
18:22:03 So, the.
18:22:06 It’ll be, it’ll be interesting to see how it all plays out. But yes, I think that these, these new barons these new tycoons or staking their claims, I’m trying to stick their claims to what’s next and using their war chest to try and, like, be back in
18:22:25 the competition so it’ll be interesting because yeah you look at basis, I mean really Tesla SpaceX.
18:22:31 I mean they’re the ones have gone the farthest so far but ultimately the end game, especially I think for Blue Origin and for SpaceX and maybe not Virgin Galactic is moving all the polluting stuff off the earth right going and doing all the mining, they
18:22:47 want to own the companies that built the minds on the asteroids and all that stuff so that’ll be
18:22:54 that’ll be interesting, but that’s not here what’s here is metaverse and it’s because probably because the climate is going to suck, and it’ll be very Ready Player One, where nobody really wants to live their real life, if we, if we can’t get the donut
18:23:14 Sorry, I don’t mean to go there.
18:23:23 Let’s move on.
18:23:19 Non fungible tokens.
18:23:22 You know, these are a component of all of these things so I was talking about met these meta verses and, you can own things right. Well, the reason why you can own that piece of armor and you’re the only one who owns that piece of armor even though it
18:23:36 only exists in the digital world is because of non fungible tokens these NFL.
18:23:54 Right, it’s the immutability of a blockchain. But it’s used to create, you know, a unique item, you know it’s even more so than getting a card printed with a unique number on, you know, eliminate addition of a toy.
18:24:14 It might be the same, but I think it’s more material you could you could reprint that card. Turn it off the chain, sorry the buyer I started the buyer beware on blockchain though, if you lose the address.
18:24:21 Oh, yeah, it’s gone you technically don’t control it anymore if you just lose the address to strict Yeah, just lose it, lose your key is the key. There’s no locksmith that can help you.
18:24:34 So they’re using it for all kinds of things and if these are you know being used to produce art that gets bought and sold music is coming online.
18:24:44 It’s going to free music from these monolithic corporations.
18:24:48 And one of the beauties they’re like when you talk about the arts, you’re talking about art music blah blah blah, is a creator has created something, and they’re going to get paid for doing it by offering an NFT associated with that song or piece of art,
18:25:07 or whatever it is. And then somebody can buy it, and they get a cut of the price. They get a percentage, and it’s coded in the blockchain. It’s a contract right it’s a smart contract on the ether on blockchain or something like it.
18:25:23 That says also every time this thing gets resold in the future. That artist still gets cut every time.
18:25:30 So, you know, you buy that lovely piece of art that you love even though it’s only digital, and you get tired of it or it goes up in value and you come across an investor who wants it and they’re willing to pay the price you want to sell it for, and you
18:25:43 sell it, a percentage automatically still goes back to the artists that originally created every time that happens because that’s how it’s programmed in the chain, and the blockchain.
18:25:53 So it’s um there’s a very very compelling reason for people in the real world to want to move to NFT for artistic creative pursuits right because today I musician doesn’t necessarily own their music.
18:26:10 Right, they only get paid if they do a concert they don’t get paid on, you know, the purchases of the CDs or, you know, my tunes etc.
18:26:19 CDs Wow, we don’t even do that anymore.
18:26:24 Hopefully that makes sense. So, these entities are a component because this is what allows you to buy and sell trade things in a metaverse or not even in a metaverse.
18:26:34 You just go to an exchange and my art or music doesn’t have we’re already, we’re already doing it anyone that is plays Minecraft creates, and if you craft something in these environments and then you trade it or you trade up and you use these many economies.
18:26:52 We’re technically already participating in it. It’s strange to me, my goals I think about it. Anytime you’re playing a game that has an economy system, economic system in it, trade and barter etc.
18:27:05 World of Warcraft had it they all had it.
18:27:09 It makes complete sense to me though. What we’re trying to do is now make this all real. You know, it’s almost like casino games that you play on your phone could potentially give you real money in the future right it’d be safe enough that you could do,
18:27:23 technically real gambling, essentially, through this level of blockchain. And they would be able to validate you’re an adult right that’s the big problem, the casino companies can’t make sure adults using that phone right but maybe there’d be that level
18:27:35 of encryption security through this block chain network, and you know it really takes out the middleman, which is the government saying you can’t use your phone for gambling or you can’t, you have to walk into a casino and have secondhand smoke in your
18:27:52 face.
18:27:53 Yeah, it’s gonna there’s, there’s so much disruption in all of our older industries all of our old industries that blockchain is going to present, and this is just so far.
18:28:06 This is like just the iterations.
18:28:09 People have created so far, and it’s pretty amazing, and it’s, it just seems so much better.
18:28:17 But not everything is as it seems.
18:28:22 So I’m glad you brought up that other point because I hadn’t even considered the point here just making, which I didn’t include in the bullets.
18:28:32 Oh, go ahead. No, what was I want you to remind me with that point was, why you asked me like, where I can recall it. Oh, I got it, I got it. Good.
18:28:45 Ray thank you for bringing up that point because it makes me think about our data, our personal data, I didn’t include that in this discussion, and I should have.
18:28:56 But just throw it out there real quick. There are some upstart.
18:29:01 I don’t know what you call them blockchain companies that are looking at how to make us the owners of our own information.
18:29:11 Right, instead of having to give out your information to every website every bank every company that you do business with.
18:29:18 You should just have a key.
18:29:20 They get whatever they need for you to get what you need, and they don’t have to store and lose your personal information or your identity.
18:29:28 Pretty amazing stuff. I hope that’s there’s a huge value proposition there’s a huge use case for potentially doing that it’s almost like how, you know, credit bureau that works for your interest on your behalf.
18:29:42 You’re absolutely right, there’s no reason why your Social Security must be the qualifying identifying information to find you and account system, there’s no reason.
18:29:55 None of that has to be the, the banks the institutions all these companies have chosen to make your personal information searchable and in a database 1000 times over.
18:30:06 In all of these systems right, this is a problem. And it’s a weight on the system that’s unneeded, it’s you. Never mind the carbon footprint footprint, from all of this Bitcoin.
18:30:17 No one’s talking about the carbon footprint from all these industries housing these mega databases duplicative databases.
18:30:28 How many times we gonna replicate the same information. Anyway, I’ll get off that soapbox but I’m glad you hit that point so that I can jog my memory.
18:30:45 Last point here. Before we get to call to action is around the centralized autonomous organizations douse.
18:30:55 So this is the area, one of the areas of risk we’ll talk about financial risk separately, but one of the areas of like ownership operational risk oversight risk is in these down, so just briefly.
18:31:10 A dow typically is set up in this environment, as the people or group that’s charged with maintaining the system. All systems need to be maintained including these blockchains.
18:31:22 And when you’re dealing with blockchains like that have smart contracts ether from others like it.
18:31:29 There’s even more maintenance because it’s like what what features do we want to offer what contracts are going to be available you know what kind of behaviors Do we want our blockchain to offer services, etc.
18:31:43 And so these doubts these decentralized autonomous organizations are the are the groups of individuals charged with coming up with those things and then voting on what they want to move forward and then somebody builds the enhancement and gets implemented
18:31:55 etc etc.
18:31:57 The challenge here it’s a great idea, because it’s decentralizing the authority so you don’t have Mark Zuckerberg at the top all decisions have to be approved there.
18:32:09 There’s nothing like that it’s a group of people and consensus has to occur through voting mechanisms.
18:32:15 So that seems very democratic ish, in a way, right when you talk about people coming together, and they’re all voting.
18:32:25 The problem is, how, how do you get the vote, and how many votes Do you get right now that whole system is based on coinage or token edge or whatever crypto right you own one or more of a given token.
18:32:44 And that gives you voting rights in this down.
18:32:48 Well, that’s not very egalitarian, right. Some of these coins are very expensive. Some are very cheap.
18:32:56 And so if you really had a vested interest because you love this particular metaverse and you play in it all the time.
18:33:04 And you want to see some of the rules of the game updated.
18:33:08 So you want to join a Tao, so that you can help influence the rules of the game.
18:33:14 But you have to afford the coin to do it.
18:33:18 And so that barrier that becomes, you know, that becomes a hurdle or barrier.
18:33:23 And that’s very undemocratic.
18:33:36 A little more aristocratic at that point right if only the wealthiest crypto holders are the ones who can participate in certain doubts that has kind of a slippery slope associated with it I think, so we have to keep an eye on that, that’s going to be
18:33:41 strange see how that plays out.
18:33:47 Let’s move into Call Call Call me, call to action.
18:33:56 So, we want you guys to get in. We want everyone you guys we only have anyone who’s interested to get into crypto, and just make sure you know just so you can explore it and learn on your own.
18:34:10 Through actually doing it going through the motions.
18:34:14 But don’t play with money you need. Okay, this isn’t, not a savings account. It’s not regulated it’s not FDIC insured.
18:34:24 You know, even the crypto exchanges, those are only loosely regulated.
18:34:46 But crypto is themselves are not at all. So, you will see the footprint footprint footnotes, sorry, you’ll see the footnotes everywhere in blockchain land do your research do your own research, very very important, right, just don’t use a lot of money
18:34:47 right.
18:34:48 And the thing that highlights this risk is the recent squid coin that came out which was a huge scam in the end and and frankly some coins, probably started out as a scam and they’re just surprised they keep going.
18:35:00 So they’ve just continued to sustain but essentially these coins have that inherent risk that the money that we put into it right we are converting our US dollars into these coins and essentially they can do the opposite they can convert it and then walk
18:35:14 with it. So that’s a good example where the squid coin did take advantage of quite a few people now I just were not sponsored by coin base but I use Coinbase and they did not allow me to purchase it so they kind of protected me from it.
18:35:30 So, some organizations like Coinbase are trying to build a reputation of creating a protection airy measure for reputation although they take those, which caused them a lot of heat, right, because that’s supposed to be the biggest scam coin ever.
18:35:46 So, again, there is so much risk, and there’s so much volatility because of that.
18:35:52 Yeah.
18:35:54 Yeah, and it. It’s not unique, at all, right, to block chain or crypto with the bad behavior bad actors we see are the same across the universe right you’ve got Toronto’s.
18:36:13 Right. There is a recent example from a heavily regulated industry where somebody still built investors right but the law will apparently catch up with Elizabeth Holmes.
18:36:26 The law will not catch up with the squid people or person.
18:36:32 Just the way everything works it’s, it’s all anonymous so essentially it means a very private private set of systems, it’s all numbers fall posted.
18:36:43 So there’s never any particular, there’s no exact way to determine who owns any crypto or wallet.
18:36:54 Law enforcement is is able to infer, they’re able to connect dots and catch. Um, people who do things on the regular. So, I don’t know, and they’ll be sa people who are doing money laundering and things like that and they’re using crypto to do it.
18:37:11 They’re like, they’re leaving a lot of footprints across the blockchain so they they leave enough behind they’re doing it so often that our legal system is able to catch up with them.
18:37:23 But in the case where you just file a white paper, you take everybody, oh we’re launching a coin, give me your money the coin is going to be amazing it’s going to do amazing things it’s going to be the best coin ever we only hire the best people come
18:37:35 by.
18:37:37 And then they close up shop take all the money and leave. That’s it. There’s no recourse.
18:37:41 So, you need to do your research and then also, you know, maybe, wait a little while.
18:37:50 It is the wild wild west to say the least. Again, in regards this but what an exciting time and and and you have there is sorry you don’t have to we’re not advising you have anything but the suggestion from us would be that it.
18:38:03 I believe there’s more risk and not doing it major institutions are suggesting their clients, put 1% of their portfolio so that’s a very conservative move 1% of their portfolio in crypto.
18:38:23 And so that means that, that’s happening, Facebook, although we make fun of Mr Zucker, that is a major move and a major signal that the metaverse that cryptocurrency, and the blockchains that support all of this next generation environment is here to
18:38:37 stay in some form or another there will be losers, but there will be winners as well and and there could be money to be made for the pioneers supporting it if you will.
18:38:48 Yeah, again it’s anyone’s game.
18:38:51 Nobody has the answers, which is the most exciting about this product I think.
18:38:57 Totally agree.
18:38:58 And the trades are a lot cheaper right it’s not $7 a trade. It’s like, it can be fractions of $1 $1 like it. Anyway, I’ll just throw that out.
18:39:09 Well, I would I would throw out that those of you that are happy with your stock free trade because the stock, you’re seeing more apps, offering these feed free, the free trading of the stocks, there’s competition from the crypto market out there.
18:39:23 So I think you have to be thankful for that as well because I’m shocked to see as many fee free stock apps out there, so true. Yeah, I just noticed that the the subscription based model or something.
18:39:38 All right. Well, I think that’s gonna do it.
18:39:41 We have been your hosts, thank you to Mr. Raymond long Jr.
18:39:46 And thank you mr Pisco Tally. This is truly been another Tales from the cryptocurrency.
18:39:57 It’s been something that’s for sure. Thank you so much.
18:40:03 For information on this and other episodes, head over to citizen Duca calm and click on podcast. While you’re there, hit up our Contact Us page and leave a comment, we’d love to hear from the community.
18:40:15 Special thanks to you our listeners we saved the best for last. You are the best and you have been for years. Thanks for your support. We know it’s painful and we love you..

 

 

 

 

 

 

 

 

%d bloggers like this: