Sketchy Ideas

Sketchy Ideas Episode 69: Crypto For Common Folk, Part 1

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3:00 Intro to Crypto

  • Think about your level of financial literacy now
  • Crypto and the reasons
    • Before credit card everything was based on cash that flows through banks
    • We have needed to find out how to make money move faster
    • EX: Credit card swipers
    • We are seeing more advancement now with crypto
    • Crypto and blockchain are not the same thing

      • 6:06 Crypto built on blockchain

      • Blockchain has been around but not able to scale
        • It was created to make sure that data was safe in computers
        • Think about it in terms of a virus on a computer
        • If you get hacked, you probably have a cloud backup
        • Became cheaper and more efficient to run this way
        • Double spending: send a check here and there, etc.

          • 9:00 Fraudulent

          • Centralization like sending to a bank was an improvement but it is slow
            • We want money to run quickly = crypto
            • Used to be days of turn around because of paper and mail
            • Speed of money and protection against fraud are the two specific things crypto is solving for

              • 12: 00 Dollar Bill Example

              • Dollar bills used to be backed by gold and silver now its backed by government
                • We still perceive it as value
                • Because it is backed by government
                • Currency constantly changes
                  • All it is a tradable asset
                  • Agreed upon
                  • People are saying crypto is liquid gold
                    • Bitcoin has a limited finite amount
                    • so it has a static value face

                      • 15:00 Gold vs bitcoin

                      • Only 21 million will be mined
                      • We don’t know how much gold can be mined
                      • It is important for people to understand because this is a global currency
                      • Blockchain eliminates the possibility to hack the entire database
                        • A block is a set of data
                        • It is then sealed and another block of data is linked into it
                        • Hence the chain link of blocks
                        • Every block has an encryption in open and close
                        • “You’re telling me block chain is a chain of blocks” -M 17:30 Gif

                          • 18:00 Redundancy

                          • We have copied that blockchain amongst hundreds of computers over the world
                          • Single cloud-computing
                            • In order to hack blockchain
                            • You need to hack the whole network all at once
                            • Also safer against inflation and nobody telling you the value of your money

                              • 21:10 socio economic standpoint

                              • Country run by dictator
                                • They can decide whether your money is worth any value
                                • We are doing this from the internet handphone so you can build wealth outside of their country’s banking system
                                • You can now use this to send money instead of using Western Union

                                  • 24:00 Exchange rate

                                  • All relative value based on governmental currency
                                  • Everything on the world is based on the petro dollar
                                    • Petrodollars are U.S. dollars paid to an oil-exporting country for the sale of the commodity
                                    • Backed more with oil then gold

                                      • 27: 00 Crypto is not going away

                                      • Fastest technology in human history
                                      • Everyone wants more control of their money
                                      • Seeing impacts of this everywhere

                                        • Full Show Notes Here

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