How Bitcoin Changes Everything | The Saylor Series | Episode 17 (WiM065)

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so that that's mobile

payments and then retail banks if you go

to commercial banking

well with commercial banks you've got um

treasury services for

companies

and you've got credit lines so

corporations like an individual in a way

i've got a bunch of cash i want to i

want to generate yield on it call that

treasury services

or i have a lot of assets i want to

generate yield on them

and i also

want to borrow against my assets

and so i need a commercial grade bank to

do that

i tend to have slightly different

requirements and i'm going to move in

greater scale and i may have

different accounting issues but the

commercial banking

application and the retail banking are

pretty similar

um exchanges are another application of

bitcoin and

and uh

there people want to trade assets

against each other and and trade

derivatives against each other

and uh you can imagine infinite assets

and infinite derivatives

um they will be compliance heavy

right do you need to comply with the

cftc or the sec or or who knows what and

that gets very complicated

but

it's a big business

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i mean the next big area of applications

would be corporations

and uh here

any company that simply buys bitcoin

becomes an application of bitcoin

and this is not a technical application

if we take microstrategy as an example

when microstrategy buys bitcoin

then microstrategy stock

becomes a derivative of bitcoin

and now microstrategy stock is trading

on a nasdaq a regulated exchange

so what you did is you took one asset

sitting on the blockchain and you used

it to back another asset and equity

that's trading on the nasdaq and then

you back a third

asset calls and puts and leaps

that are trading on a on a futures

exchange like the cme or something

and you may have even issued debt

that trades

privately over the counter

through a set of broker dealers

each of those are applications of

bitcoin

well how big are they they could be a

billion they could be 10 billion you

could have 100 billion dollars worth of

these applications

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why do they exist

because people want them

right because there are a lot of people

that want to trade stocks on nasdaq they

don't want to trade bitcoin

on coinbase

why don't they want to because they took

a decade to raise 100 billion dollars

and they promised a bunch of pension

funds that they would only trade

equities on nasdaq and now it would take

them another five years to reset

expectations with the pension funds

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maybe they want that because

they like there are companies that do

convertible arbitrage they have 10

billion dollars

they raised it from pension funds and

endowments and they do convertible

arbitrage that's their strategy

and that means they have to be able to

buy the convertible debt and short the

stock

and try to generate a yield

and they've got billions of dollars to

do that thing so they get up that's what

they want to buy

there's a phrase on wall street

when the ducks are quacking feed the

ducks

the ducks want to buy convertible debt

give them convertible debt if they want

to buy equity give them equity if they

wanted to buy bitcoin then they would

buy the bitcoin right but um but these

applications meet different needs

if you're a consumer

you know you're a consumer you want to

download square cash app and you want to

smash buy 37 dollars worth of bitcoin

and you want to do it in two clicks

you don't really want you know a super

complicated trading console with like 16

bloomberg screens

you know with futures and options and 3

700 trading pairs

that's not what you want

you want to smash by 37

so sometimes simplicity is is the right

thing sometimes you want simpler than

that

sometimes you know you've been doing

business with the same private wealth or

client advisor you want to call them on

the phone

yeah you know and you want to say buy

ten thousand dollars worth of that

bitcoin

and you want them to kind of buy a

bitcoin etf

and you know

the the pure bitcoin maximus will say

you're crazy

you should store 10 000 in your own

hardware wallet okay well i'm 82 years

old and i'm a wheelchair and

my hands shake

and i don't use computers how am i

supposed to store this in a hardware

wallet

like i'm just buying it you know as an

investment instead of buying gold

yeah and i've got five seconds okay so

you have five seconds and you talk to a

guy bill that you've been doing business

with from merrill lynch you know merrill

lynch you know was a company of its own

before it was bought by bank of america

so i talked to my guy bill for i've been

talking for 30 years

i have five seconds

and i want to buy 10 000 worth of

bitcoin

okay does that application matter

sure it does

what if i want to buy 10 million dollars

worth of bitcoin

does that matter sure it does

what if i want to buy a hundred million

worth of bitcoin it's the same dude

with the same five seconds

okay so

do applications scale the bitcoin

network yeah absolutely right you know

would it be helpful to have more

they're all handles they're they're a

handle i'm grabbing on to bitcoin people

handle it different ways do i

if i have paypal it's installed on my

machine and it works and i can click on

a button in one second and buy bitcoin i

prefer that

to downloading a better application that

takes 37 clicks and takes two days to

get authenticated right right and so so

at the end of the day

these applications make a big difference

and what what you have going on here is

the creation of financial applications

being wound into other exchanges and

other platforms

and then and the platforms are

everything

right

and uh they take it like for example a

corporation on the new york stock

exchange takes you to the new york stock

exchange platform a corporation on the

nasdaq takes you to the nasdaq

platform a corporation in japan you know

takes you to the to the nikkei

you know trading platforms so as bitcoin

spreads on the balance sheets of

different companies and different

governments

it spreads onto different platforms and

it morphs

into different derivatives and different

flavors

i think this is um

sorry i just wanted to say that i think

this is a very useful framing

actually that if we i've said that money

is kind of the base layer

protocol for human interaction you know

we've had gold

functioning for a long time we could

arguably say that a lot of these

institutions

technologies government currencies these

are all applications on top of gold

effectively

and so now bitcoin's kind of like a new

base layer it's a new base layer

protocol

replacing gold and enabling lots of

other applications

uh to flourish on top of it

yeah i would agree i mean it's it's the

base

it's the base property protocol or the

base monetary protocol if what you want

to do

is

is to build something on a stable

monetary base or a stable value base

then you

you need digital

money

digital property

and that's a little bit different than

digital currency right

if you want a good digital currency

you're best to make base it on a good

digital money right currency is an

application of money i think it's a

great way currency is an application of

money yes

and if you if you understand it that way

like money is is the base layer the the

end-all be-all source of all value and

virtue

and everything else is an application on

top of it

i mean i don't

i don't need a hundred percent of

everything i am to be in my currency i

only need one percent of everything i

own to be in the currency i and then 99

of what i am i need to be in the money

yeah and in fact if if the if the money

has integrity

the currency doesn't need to

right

which is a pretty important point yeah

if i had 99 of my wealth and the money

and if the economy was growing or my

assets were growing at four percent a

year and if one percent was in the

currency and the currency was devaluing

10 a year it wouldn't matter yeah

because on the margin right 10 basis

points to you yeah i'm getting wealthier

faster than i'm dissipating energy right

yes yeah

and it's it's just you know it's the

same with a lot of things in life it's

like the five dollar bill that falls out

of my pocket on a saturday night

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isn't going to impoverish me right

and on the margin you could say well

you're kind of crazy to carry cash to a

bar on a saturday night

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i know but i'll take the risk

for the convenience yeah

each of these things right is putting

value at risk for example if you have a

billion dollars in a company right you

you know the you have the counterparty

risk of the billion dollars in the

company if the company fails you know

the company's defrauded then a billion

disappears but it doesn't imperil the

entire blockchain

so

and a publicly traded company that files

quarterly results

is a lot more trustworthy counterparty

if like microstrategy is able to issue

debt

backed by bitcoin but we're a public

company if you were a private company

and you also wanted to issue debt backed

by bitcoin it would either be harder

impossible or you might pay a higher

interest rate

and if you were if you were an entity an

individual that nobody trusted

and you went you tried to sell the same

bond right maybe you wouldn't get it

because people are taking counterparty

risk

and they're trying to figure out whether

they trust the counterparty

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but now here you see the beauty of

bitcoin which is

everybody can have an application so the

question is

which exchange is going to embrace

bitcoin most effectively which mobile

app is going to embrace bitcoin most

effectively

which commercial bank will embrace

bitcoin most effectively which

corporation will embrace bitcoin most

effectively which government

you know like any any governing

municipality could you know could issue

a billion dollars of municipal bonds a

two percent interest they could buy a

billion dollars a bitcoin that has a 100

yield

they could scrape the arbitrage and they

could generate a billion dollars

a year

right

in appreciation

you play the game right in theory you

could just issue a bunch of debt buy the

bitcoin eliminate taxes forever

now

you're like well that sounds too good to

be true

well everybody can't do it

if you're last

it doesn't work that well it works if

for example

mark zuckerberg was first to own

facebook stock so he's rich forever yeah

you can't get rich forever by buying

facebook stock now what's the difference

between you and mark zuckerberg the

difference is

he was first

yeah and you were last

and the same is true with jeff bezos

so if you're the first city

and you move you move early

yeah then as everybody else enters then

it's like

if you came to america first and you got

a thousand miles of farmland right or

lord baltimore

right

you get a better deal than if you show

up nine generations late

so

with this

you've got a market dynamic where the

first government the first city the

first state you know the first country

they can all seize an advantage and

they're competing

you know like

i talked to an energy company the other

day i said well you know you're an

energy company but you know what you

could

you can um you can either sell your

energy to bitcoin miners you could pay

two two cents a kilowatt hour

and you could sell your excess energy

small idea right

or you can become a bitcoin miner and

you could mine all your with all your

excess energy and make 40 cents a

kilowatt hour yep

better idea

or

you can go big and you can buy a bunch

of bitcoin miners and or mine it and

then you can go and issue billions of

dollars of debt at two percent interest

and buy the bitcoin

and then make billions and billions of

dollars right if you if you want to make

five billion dollars and you're an

energy company

buy five billion worth of bitcoin issue

a press release

and then wait 90 days and you will

probably make five to five to ten

billion dollars right do you want to

bend over and do that i mean now that's

a bigger idea

but the biggest

idea is you do all those things you

reposition your company and your your

revenue multiple doubles or triples

because now you're not a sleepy

regulated entity you're a high-tech

company

you know um these big energy companies

that you know you could have 20 30 40

billion in revenue and trade at 40

billion dollar market cap

well it's likely that a two billion

dollar bitcoin miner will trade with a

40 billion dollar market cap

so i think what if the bitcoin miners

started buying the energy companies

right it happened with uunet and

worldcom you know

back in the day where you actually saw

the internet companies buying the baby

bells

yeah buying the telcos

and um yeah and maybe they don't

but um

the bigger idea is the utility companies

are in competition with the tech

companies and they're in competition

with the financiers and the hedge funds

and the traders and the governments

bitcoin doesn't care right

and at every level there's this game

theoretic incentive to move first

benefit disproportionate to later

adopters because to your point wealth is

hierarchical right if you're there first

and you're right

you're going to benefit the most this is

true in bitcoin as well if you're early

to bitcoin you benefit

more than later adopters and this is

also i think the problem with fiat in a

way

is that this central bank has kind of

irrigated itself

to always be first right it always gets

to allocate itself new shares of

currency

um so it's it's it's kind of uh hijacked

the hierarchy of wealth if you will in

fiat

yeah and bitcoin

the courageous

the courageous with clarity a vision

get to make themselves first

it's it's private market and money yeah

and with fiat

it's uh it's those that are politically

connected

stay first right exactly

right so it's public money

and um

so it's worthwhile to say you know all

of those organizations are competing

but we have um we have other types of

derivatives that are very interesting or

other application bitcoin like let's

take insurance

if you're an insurance company

um

then every insurance policy you issue or

annuity that you sell

based on bitcoin becomes a bitcoin

derivative

so

if i want to sell your life insurance

policy that pays off

a million dollars when you die

and i'm going to charge you

x premium right i got to charge you

enough premiums and invest them to pay

off the million dollars

so

if i charge you those premiums and i

invest them at two percent yield or

three percent yield it's kind of hard to

pay off the million i have to charge you

a high premium

whereas if i

charge you premiums and invest them in

bitcoin i can lower the premium or i can

raise the payout

or i can make the payout variable

so now you've got an insurance company

that's created a differentiated

insurance product and you can either do

it explicitly

you can do it explicitly by by offering

the policy backed by bitcoin

or you can do it implicitly on your

balance sheet

you could just take 50 billion dollars

of your balance sheet that are your

collected annuities or premiums and you

could buy bitcoin with it and use it

collectively to back all your policies

at the corporate

and of course insurance companies have

long long durations they have to look

out 30 40 years

they're in business forever

they have huge balance sheets

and their traditional funding vehicle is

bonds and bonds are broken and so you

need a you need a better

type of

annuity generating asset or a better

appreciating asset and that's where

bitcoin comes in

and that's where investment firms come

in

i mean

my next application you get an

investment firm and you sell mutual

funds or you sell investment funds and

people invest with you so

if you create the fund based on bitcoin

and then you sell that

that becomes an instrument that's

interesting to corporate investors

family offices individual investors

there's a lot of people that will want

to buy that fund and there's a there's

an entire industry that sells those

funds

there's also an interesting hybrid twist

on that

like

if you look at fidelity fidelity sells

all sorts of fixed income funds

municipal bond funds sovereign debt

funds corporate bond funds junk bond

funds

they all have a low yield and they've

got a negative real yield

well you can juice them

by

by blending them with bitcoin

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so if i want to if i have an instrument

or you know an asset that's been going

up 100 a year and i blend it in to an

asset that's been paying 3 interest

now i created a hybrid instrument that's

got

downside protection of bonds but upside

opportunity of something

right not as much

kind of a barbell

like sucralose is a powerful sweetener

you put it in anything

it's an artificial sweetener or it's a

booster it's a sugar if you will

so for an investment fund you can blend

various types of funds what if you're 50

bitcoin and then you

the other 50 is bitcoin derivatives call

and and future caller options maybe you

call or the bitcoin

or maybe

maybe you're 50 bitcoin and then you're

selling covered calls out of the money

to generate yield so you're creating a

bitcoin yield fine it doesn't have the

same upside as bitcoin but it's got a

guaranteed

you know at some point you know downside

protection upside yield you're blending

the thing and you're selling it to

someone that wants to buy that

are there people who want to buy it sure

like in a way microstrategy issues a

bond

six and eight percent interest

and uh we buy bitcoin with it if you

swap the two

you've given up the upside of bitcoin in

return for getting the guarantee of six

and eight percent interest and why do

you do that well because the

government's paying you one percent

interest

like because the because the spread is

500 basis points over solver and debt

and because the spread over over

investment grade corporate debt is 400

basis points

so you want the yield

yeah

right who wants the yield well somebody

that actually sold 100 billion dollars

of a high yield fund to an endowment

that's who wants the healed right right

right so there are structures in the

financial universe they exist

they don't you don't just snap your

fingers and change those structures in a

day or a week or a month or a year

in some cases those structures have

formed over 30 years

40 years

10 years 10 years is a short period of

time in the finance world

so

what you have here is investment firms

that are able to create all their own

financial products

with with any mixture and blend of risk

and volatility

and they can hybridize them with

existing conventional assets

like what if you what if you had a fun

which was half gold half bitcoin right

you know for people that like gold but

they can't bear to give up

yeah or they like bitcoin but they can't

bear to give up their gold right

you know it's like an alloy right an

alloy right yeah yeah the i was just

what's coming to mind here is that you

could almost put in your parameters and

just back into the right blend

customized for you right using bitcoin

to kind of augment your risk profile and

volatility and such

yeah and there's

there's a lot of people

uh

that would give up the ability to get a

100 return in a year

in return for

a downside protection

yep

right

you know if you went to every

conventional investor and said

are you willing to give up

more than 30

upside a year in return for all these

downside protections

yeah there is a lot

and they and uh big banks sell these all

the time they're very lucrative products

yeah like i charge you a two percent fee

to give you a structured product

it gives you some mixture of downside

protection and upside that we've

tailored

you know to your needs

so those are just other applications

moving on let's talk about trust and

endowments you've got a family trust is

supposed to last a hundred years

fund it with bitcoin

the rockefeller foundation right if you

have um

any kind of endowment every university

every non-profit has an endowment they

all have the same funding problem

which is

where you put your money

where last 100 years

and here

this is an interesting

it's a digital transformation of money

managers

i can either put a hundred million

dollars into an endowment and have like

ten money managers and they charge me

two percent fee or one percent fee a

year to manage the money

or i can just put the money into bitcoin

and i've de-materialized the money

managers

we talked about the complete digital

transformation or de-materialize it

dematerializing the fiat banking system

in our early sessions

in this particular case you're just

dematerializing money managers

but

there's an application the application

would be

i need a certain type of reporting and

compliance

like what what if you did run a

non-profit foundation and you wanted to

be a custodian of 12 million dollars

you want to flip into bitcoin and now

you now you want to spend one hour a

year

monitoring your position

filing the appropriate forms with the

irs

and then you need to make disbursements

so you're an endowment what you'd

probably want is a credit line so you

can borrow some money to pay your

disbursements your fees on an ongoing

basis

and then you want the principal to be

protected

normally you have that you would have to

reinvest it well what what's the closest

thing to bitcoin

probably the vanguard 500

or the like

and if you look at vanguard you look at

fidelity and look what they do one big

business for them is this like endowment

management or

you know donor assisted funds and they

just run these funds where you put your

money into this stuff and you put it on

autopilot and people look at it once

every 90 days

and that's that's a big business

right now

a hundred trillion dollars of it is

broken

because a hundred trillion dollars of it

is bonds

and so you've got massive amounts of

fixed income bonds and other assets that

are broken

and those are traditionally the things

that are easy to manage and if you can't

do if you can't do 100 trillion of bonds

you have to go into equity but there's

not enough equity

right so

if the equity markets in the us were 35

trillion and they get 100 trillion in

bonds that are broken

you can't just jam

50 trillion dollars into equity right

well you can

so what are the consequences right you

overvalue the equity right right which

is happening

which i mean i can't imagine any of

those examples right i mean

yeah lots of examples we overvalue the

equity as we jam the money into it

and people are waking up and they're

looking for that alternate asset class

yes

and the beauty of bitcoin is bitcoin can

never get overvalued because bitcoin's

bank is cyberspace

if you jam 50 trillion into it

the price would go up by 50 trillion

and it would be worth 50 trillion more

and and this is the crazy thing about

bitcoin too i guess money more generally

is that it's a veblen good right so

actually the more expensive bitcoin gets

the more de-risked it is

as money

so therefore it's almost like a

self-catalyzing feedback loop in a way

the more money you jam into it the more

likely it is to eat all the other money

in the world

the more uh value you would expect to be

placed on it

yeah i mean it's the ideal solution to

the problem

now i talked about a bunch of financial

applications and and and i'm always

thinking about corporations and

governments as

as platforms but

we should also talk about hardware

applications so you know there's a lot

of hardware applications of bitcoin

there's the miners there's the nodes

there's the wallet

any device that exists

could have bitcoins protocol built into

it

and the question is do you want to do

you want to build the wallet protocols

you can build lightning and you can

build bitcoin wallet right into any

mobile device you could build it into

jewelry right you could build

multi-signature protocols into your

watches your jewelry

your phones your desks

your appliances

and that's a differentiating business

it's just it's not on you know people

build bluetooth into stuff

right

this is more important than bluetooth

a bit more important than bluetooth

right you can you can build

you can also build nodes and node

capabilities right into devices

and you can build mining into devices

right you could

you could uh integrate

these capabilities right into firmware

into hardware and there and why would

you do it

because it's differentiating

if apple creates if they build bitcoin

support into face id or touch id

and the icloud

if the icloud was like a multi-signature

multi-factor

you know bitcoin cloud

then you've got

a trillion dollars worth of bitcoin that

can flow into the icloud

[Music]

that differentiates icloud yeah you can

do it with google you could google cloud

you could do it in microsoft

right you could do it in facebook

um

and so

apple's interesting because it crosses

hardware and software and network areas

but you know if you go into the software

you've got windows and ios and android

and these are all operating systems

you know and to a certain extent things

like chrome are like their own little

mini operating system

you can build bitcoin right into those

things i mean

google built password managers into

chrome yeah

right

uh and uh if the operating system has

native support for the monetary protocol

then either that's a reason to use the

operating system

or um you can pass on those primitives

and that functionality to the

applications running on the operating

system yeah

like for example apple

lets banking applications use face id

for authentication mm-hmm right

and that makes the banking applications

better and so

so if you want to compete in hardware

and devices or in software os's

then putting the monetary protocol into

it is just like building tcpip

i mean i'm old enough to remember when

tcpip wasn't built into every computer

right

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[Music]

the lighting network can actually

augment authentication or you can you

can authenticate through the lightning

node as well so it can be an alternative

to password management at some point

yeah i mean there's there's

really fascinating decentralized

applications like decentralized

that

is probably like outside the scope of

our conversation here it's like an

entirely other world yes yeah

um

but with hardware and software that

leads you to cloud right because cloud's

another application aws azure and google

cloud and the like are all general

purpose containerized corporate

platforms

for spinning up massive applications

and so to the extent that they have

support for bitcoin or lightning and

certain other monetary protocols

then it makes it easier for their

clients

like zoom

you know zooms assume went from nothing

to 400 million users during covid

because they were sitting

on top of cloud platforms from you know

an azure or an aws and if they weren't

they couldn't have scaled

so when they're scaling they need to be

able to access these underlying services

monetary services are are destined to be

built into every application

um and they would be differentiator

now now if we go to another really

interesting application take social

networks

um twitter facebook instagram tick talk

well one of the killer applications for

social networks

is is verification and credit worthiness

or another way to say it is to put skin

in the game

right now there's no cost for malicious

behavior

so if i open up my instagram direct

messages 99 of them are bots they're not

really people

and when i look at my twitter comments a

lot of times 90 of them will be bots or

malicious actors

so you've got a bot war people have

computers spinning up fake twitter

accounts and then twitter has computers

taking them down as fast as they can

and in the first hour after i post i

just see a bunch of garbage and then

maybe after a day they've cleaned it up

and there's like real comments

but what that means is there's a two

three four five hour delay between when

i do something and when i don't have

garbage in the feed

how do you solve it

well

the logical way to solve it is

i put a hundred thousand satoshi's

on a lightning wallet

and then i make a security deposit

to twitter

or security deposit to

instagram or security deposit to youtube

and if you deposit that's like 40 bucks

right pick a number it doesn't matter

what the number is some something less

than a lot but more than nothing

i deposit a hundred thousand satoshi's

and that gives me

and then people on twitter can say i

only want people

with an orange check

that are credit worthy

or lightning certified

to be able to post comments on my tweets

and i only want to receive uh direct

messages from people that are lightning

certified

or verified or i

follow one of those three

and if you're not an orange check we'll

call it

then you can't message me and you can't

comment

so what happens

well

first of all if i just if i just turned

my entire feed to only orange check and

blue check all the bots disappear

everything disappears right you know um

cz does this on binance a different way

he basically blocks anybody but people

that he follows from being able to post

on his twitter comments

but the problem with that is that if you

only follow a thousand people

you know you're you're living in this

hermetically sealed world of only a

thousand people can comment right what

you want

is you want a hundred million people to

be able to comment but you want them

to comment with

safe and sub and civility or at least

you want them to be human beings

so if a hundred million people post

thirty dollars

then you've got three billion dollars

worth of bitcoin posted as a security

deposit on the twitter network

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now everybody that comments is a real

person well let's say 98 of them are

and if someone wants to spin up uh 29

michael seller bots

well they can do that but they're not

orange checked and so i'll never see

them and no one will ever see them

right or if they want to get the orange

check then they have to post

100 000 satoshi's 29 times

and if it turns out that they were

imitating somebody

maybe they get a fine of a thousand

satoshis or maybe they just lose their

orange check and they forfeit the

security deposit

it's like if you trash somebody's house

when you're renting it

whenever you

whenever you rent a house or whenever

you cross public property you either

have to have uh

you have to have insurance like uh like

car insurance

or you have to be bonded if you're a

worker or you have to post a security

deposit

and if you have that concept that you

have to be bonded or have to be credit

worthy

then what that means is that every time

a bot attacks you it costs them thirty

dollars

and you're monetizing maliciousness

if someone's stupid enough to be

malicious

right it's it's not that the platforms

don't have rules they do have rules like

they they take people down and kick them

off and put them in the penalty box all

the time but the rules have no

consequences

if you have a computer that generates 87

million fake michael sailor accounts

every day

what the heck do you care about the

rules the rules don't hurt robots

there has to be a price or a cost to

maliciousness

and so

what you have here is

is

you have a bitcoin lightning network

that allows a billion people to post

twenty dollars each

and then you could have micro payments

and um

when that happens

if i go on amazon i look at the um

at the

opinion surveys i don't have to worry

that someone hire someone created fake

bots to fill in the survey

because if you get caught faking it you

get a fine

and uh if i go on youtube and someone's

running a scam video

and they have to have a the right green

check and then when they get

we report scam videos every every two

hours robert

every two hours someone spends up a scam

video on youtube which fakes something

and we report them as fast as they spin

up

but there's no cost right

or there's minimal cost the denial of

service accounts

denial of service attacks there's no

cost to spamming there's no cost to

hostility online

there's no cost to in to being an

imposter there's there's no cost to

spending up 97 000 fake accounts that

actually try to create the appearance of

a panic when it doesn't exist right

cyber warfare

so

what's the solution the solution is

in the real world you have skin in the

game if you walk up to to women on the

street and you and you and you insult

them you take the risk that the person

next to them or they punch you in the

face

right

right and if you drive your car and you

get in a wreck you get fined and then

you've got an insurance claim and

there's consequence and if you go rent

someone's house for the summer and you

trash the house

and you have a security deposit they

take it or if you if you rent an

apartment the security deposit you trash

it they take it so there's skin in the

game and that causes people to act with

some degree of civility

there's no civility in cyberspace

because there's no skin in the game why

not

well because if you use credit cards

it's two and a half percent fee it takes

two days to clear and two billion people

don't have credit cards

among other things

right you do it to the app store well i

mean you could try to do the app store

as a 30 percent cut

how do you move a thousand satoshis for

one satoshi in a split second right