[Music] small disclaimer this is I’m not your financial adviser right all right disclaimer complete so Bitcoin cash why does it exist well Bitcoin today can only do a couple of transactions a second so what that means is that everybody in the world can’t just hop over to Bitcoin and start buying coffee with it the idea was hey if we make bigger blocks if we if we make it so that you can do more transactions right away people will start buying coffee and using Bitcoin cash for everyday transactions here is where that falls apart it does not look like it’s even remotely possible for Bitcoin cash to even replace something like Visa these processes something like 45,000 transactions a second these is not all checking accounts it’s just one way that people buy stuff so for Bitcoin cash to be able to go from beating Bitcoin which is like 3 ish transactions a second to beating visa which is 45,000 transactions a second they’re gonna have to increase by a thousand X this is not easy and Bitcoin cash can’t get remotely near what visa can do in terms of transactions so what’s the solution if you look at what Bitcoin actually ended up doing they did something called Segway now Segway does not make Bitcoin have the ability to overnight eat visa but what it does is it allows Bitcoin to work with other things that will not only allow it to eat visa but to maybe eat everything the fleckman you’re looking for super high multiple returns on money meaning one dollar in lots of money out holy bejeezus Segway you should pay attention to it you should understand what it means because it’s super duper important but only if you like money so you know a lot of people have this misconception that bitcoin cash is really trying to beat the current number of transactions a Bitcoin can do now maybe people talk about that but that’s not really the right way to think about it the way to think about it I think is that Bitcoin cash is really trying to be visa and you know if you look at like a venture capitalist the way that they think about these things is look if you’re trying to solve a hair on fire problem that no one else’s great you can start being crap but if you’re trying to solve a prop other people have already solved if you’re trying to beat visa then you need to be like ten times better than visa and you know what the truth is Bitcoin cash with its current roadmap it’s not at all gonna be able to be visa it won’t even get close but Segway Segway can not only match what visa is doing and go another order of magnitude further than it it can go orders of magnitude further and we’re going to tell you why in just a second so what is Segway I’m gonna give you a very basic explanation I’d actually recommend googling Segway there’s a great a great article on investopedia that does a nice job of explaining it but Segway stands for segregated witness you have what’s called blocks inside of a blockchain that shows you a sequence of transactions and so with segregated witness what you’re doing is you’re splitting this so you have half the information that you used to have inside of the blockchain you use to like show the transactions and the other half is now open so that you can put more transactions in there and then what happens is they have this additional thing of it like an additional column of information and in this column you can start looking at connecting to what are called side chains or sister chains and the reason this is so important is you can do things like interact with other networks like the Lightning Network or you can connect to rootstock so you need segregated witness because what it does is it allows you to massively multiply the amount of stuff that a protocol can do so what is this fight where did it come from well in the DNA of this fight here’s what happened there was one school of thought which is mostly developers it was like look if you’re a developer you study technology adoption because is a really good developer you care about getting a large return on your brain juice developers realize that you know for really big adoption it takes a long time and so they thought look if this is gonna take a long time how can we do the the smallest thing that’ll make the biggest difference and they said we’re going to do Segway it’s called segregated witness the thing we just described now on the other side this other group was like no seg what’s dangerous it’s not going to work and people can attack it so what we’re gonna do instead is just make bigger blocks because with bigger blocks we can right away start having more transactions with the caveat being that the more transactions is still not even remotely close to visa which is like a thousand X more treant more than a thousand X more transactions of Bitcoin already become cash isn’t gonna get anywhere near that here’s the thing is that the main contention was the segment was dangerous now seg what has already happened and the the danger was that it would get hacked or attacked through you know game mechanics that somebody could game at the game mechanics and they could figure out a way how to basically like crash Bitcoin and then short it to make a ton of money well here’s the thing if that was likely to happen it very likely would have already happened the fact that no one has crashed Bitcoin had no-one’s hacked it and drove drove the value to zero by doing double spends demonstrates that Segway is probably safe and so the main contention against Segway I mean then the main logical one there’s lots of emotional reasons and tribalism but outside of that like the main logical reason in my mind you know what its kind of past I want to just remind us you’re gonna hear me say this I’ve said this before I’m gonna say it again the big goal is to identify a protocol that’s gonna eat a valuable aspect of human nature now if checking accounts are a valuable aspect of human nature and I think they are then we want to try to identify if there’s going to be one protocol that’s going to be super dominant right and just as a reminder normal dominance is first place is doing better than the second place super dominance is when the gap is always getting wider so first place is always growing faster than second place so if we compare Bitcoin cash to Bitcoin because of segways second what’s the important thing in Bitcoin cash could totally implement seg wit but it doesn’t look like they will because like part of the whole thing is they’re anti segue but Segway the agnostic of the protocol Segway is so important to help you get super dominance because it can potentially give you many many many many many orders of magnitude increases in performance because Bitcoin has implemented Segway and Bitcoin cash is not Bitcoin is currently in my mind positioned to be super dominant versus Bitcoin cash I think about the long game I’m not looking for like who’s gonna be better in a day in a month even a year I’m looking for like 10 20 year time horizons because I care about super dominance and that’s how long these things take you know like the adoption of television the adoption of washing machines refrigerators plumbing right so like these things take decades to adopt but when they do the returns are insane it’s true that Bitcoin cash today might be able to process more transactions but because bitcoin is implemented segwayed they can very likely will once the the Lightning Network and other side chains activate they’ll be able to process hundreds maybe thousands of times maybe even hundreds of thousands of times more transactions than Bitcoin cash because they haven’t implemented Segway here’s an analogy and I want to open this up for scrutiny but this is just a starting point to wrap our brains around the differences so let’s say that you’ve got a boulder it’s a big fat heavy Boulder let’s look at the Bitcoin cash and the Bitcoin approach to pulling this boulder if a boulder is just like more transactions or bigger the boulder the more transaction so we’ve got this big fat boulder this huge number of transactions you want to process now you can think of what bitcoin cash is doing like having a thicker rope and yeah it’s true like a thicker rope will definitely help you pull this Boulder but what happens if you want to pull two boulders or ten boulders or a hundred boulders just keep making thicker ropes or do you introduce the idea of leverage back in the day these savvy people invented a thing called a pulley and the thing about this pulley is that it gave you massive leverage suddenly with a decent rope and a decent pulley you could pull many times more boulders than you could with just a thicker rope and that’s that’s the difference between Bitcoin cash and Segway and Bitcoin with Bitcoin cash yeah they gave you a bigger rope and you can totally pull more of a boulder than you could without it but with Bitcoin thanks to Segway you can pull many times more boulders potentially hundreds of thousands of times more boulders some people argue that they want to be able to pull more boulders now and I get that you know but the truth is you’re not really going to be able to pull that many more boulders now and the cost the trade-off is that you give up potentially being able to pull way more boulders in the not-too-distant future so it’s really a question like would you rather have a marginal improvement in your boulder pulling in the short term or a massive improvement and your boulder pulling in the long term well if like me you’re looking for huge multiple returns again this is not financial advice I’m not your financial adviser but in the world of Boulder pulling I’d rather get a thousand ex return on my investment into Boulder pulling technology in the long term and a small you know five 10% increase in the short-term as far as they know we only have one cryptocurrency that is pursuing the attempt to remain as decentralized as possible as censorship resistant as possible as robust as possible even at the expense of immediate skilling now on the base blockchain I’m trying out a new content and if you like it hit that like button it lets me know to do more of this kind of thing also maybe maybe think about in that subscribe button that’s gonna be it for today hope you folks stay in trouble you don’t get caught so yeah

Leave a Reply

Your email address will not be published. Required fields are marked *