United States, Matt, Turkey discussed on The Product Podcast


Other. Obviously, I don't want this to be one way. And I know that I might of used some terminology may now be that clear anybody's question is any part of that. I should. Kinda spend more time on Oprah. So I guess another question is what bitcoin res- blockchain. Everybody uses those two things differently. What's the difference? Why does it Matt? Right. I was big point is digital currency runs into blockchain, and it cannot without the blockchain bitcoin counties. The reason why it cannot exist without blockchain is that. When bitcoin is created. It was like, you know, if there's something digital that. I sent you. If I send you Email or send you a PDF are that created on my computer? How do I know that how does and I tell you. Oh, well, this is worth something. Right. How does a person know that I just didn't make ten copies of that? And just send it to ten people. And then automats say that that's what it is. Right. That's the reason why up to this point anything digital cannot be considered money right because money has to be scarce. You have to make sure that people can't double count. It. You have to make sure that. The person that sent it actually hasn't the have. And that's where ledger comes in. Right. So that's why banks of all right? So when I my bigger maker account, sending you money by Venable, if only have ten dollars, and I try to ten thousand people this is going to break the second time, right blockchain technology, kinda takes what what Bank of America does for us, and that's an area and puts it on this. And so leveraging that allows you to take something digital make it scares, and you can make anything into money on on that. Right. So money, what is money in general money is basically what people say is money. Right. So, you know, the US dollar is money because backed by the faith of government, right? But you know, we all know, you know. US dollars not the only currency in the world. Right. So just the past couple weeks. We see in Turkey, advocacy, and people are not believing in it until it's being value. Right. People use art as currency people have used salts and sugars currency. You know, I like to argue that basically half the world was it was basically. Discovered because people were so into spices right and wanted to kind of get to India and ended up in the Caribbean or India in Africa, and obviously there's a lot of civilization that was expanded. But you know, it's it's pretty interesting. But in at the end of the day, the reason why bitcoin is of values because quite frankly, people say, it's value. But the only reason why it's usable and people cannot. Cheat cheat the system is because of blockchain. When it comes to crypto bitcoins. Gateway drug is the first thing that people kinda step into is the first large cryptocurrencies, the first cryptocurrencies the first use case for the blockchain, but as over two thousand coins out there, why can't anybody create according I mean, probably schools create the ongoing tomorrow and just and make people use their corn to by the courses. Right. Why is that even possible? The reason why possible because bitcoin is open source theorems open source. Right. So meaning that the they take the code that used to created the the coin is actually consumable for the world to see. Right. So anybody can take it to week it and make it their right? And just kind of introduce it. That's why we have so many coins Creole out out there, especially last year with the ice ios initial coin offering hype people were doing all day because they saw some people were actually legitimate. Join improve on the technology because they saw them with bitcoin limitations with him. But a lot of people were just trying to take money from people. Right. And so that's why you saw like this big run up. And now you see the market has kind of pulled back quite a bit different. No, no. So I guess mining already actually I need I should probably talk about that a little bit. So like, I said the blockchain is almost like this spreadsheet that has all the transactions, right, obviously, Google spreadsheet. It's cool that everybody could right to it. But then somebody could put a cell in and somebody could just change tomorrow. And so like, I say I could have had ten bitcoin yesterday, and then gone spreadsheet and at zero one hundred right? So just because decentralized as make doesn't make good, right? We're makes it good. Is. That is decentralized and the verification could be decentralized. So the verifications the verification of the transaction happens to process called mining right? And so mine ING is people use mining basically try to use it. It's kind of obviously copied from gold and silver and stuff like that. And people like to say this digital gold mining means. I, you know, I as a person say I want to put up my computer, or my internet access on my energy and say, I I'm willing to be validated to transactions. Right and to and when you why why would anybody want to be valid reason why they wanna be evaluated is because they do they get a fee. So you could basically get you could get bitcoin just for offering your I could just hook in. I mean, it doesn't work anymore. But it used to work where I could just hook in my my my back book and basically downloads coat and say I'd validate, and what happens is when transactions have on the blockchain it, basically gets shouted out to the network and people say, and they said, all right. Well, I just said one one big point to her. We need to network to validate it, right? And so everybody that kind of raise their hands saying, they're a minor. They Dale vowed it, right? The question is how do you know who validates who gets feet the way that you get the feeling that there's this mathematical equation? That's what that's what the crypt cryptography comes in on your computer has to solve a math. Problem the fastest. Then it says. All right. Well, then the system says all right that person basically solve the mathematical puzzle. I that person gets to be the validated in there for that person gets a part of the feet, right? And so the reason why I said that are used to be able to do this in my laptop is that in the beginning. You didn't need that much computer power to do it because network was small, but obviously over the past few years would be being more viable the competition to become miners and get those fees have gone up. So now people are having like servers and people are testing all type of different technologies in order to have the power to perform that calculation as fast as they could and win that price. So to speak. 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