The Killer Apps of Bitcoin

Published on
December 14th, 2016
Duration
32 minutes


The Killer Apps of Bitcoin

Cypherpunks beyond Bitcoin ·
Featuring Tuur Demeester

Published on: December 14th, 2016 • Duration: 32 minutes

Tuur Demeester, Editor in Chief of Adamant Research, returns to Real Vision TV to continue his Bitcoin series, surveying the landscape for the potential killer apps of Bitcoin which are set to drive adoption of the cryptocurrency. In this presentation, Tuur identifies these applications based on the characteristics of Bitcoin that make it a disruptive technology and not just digital money or a shared database.

Comments

  • bs
    bob s.
    18 January 2018 @ 12:24
    ANY CHANCE OF UPDATE INTERVIEW? WHAT IS THE PROGRESS OF THESIS? IE WHY BUY NOW? PS. very interested and bullish on crypto. TY
  • SP
    Steve P.
    31 May 2017 @ 02:42
    The India banking perspective just changed everything! Whatever your parity savings account for an average Indian in US = 's will = that in India as brain drain reverses and first gen / 2nd gen indian
  • RD
    RP D.
    5 May 2017 @ 22:13
    Please get Tuur Back!
  • DF
    Daniel F.
    3 January 2017 @ 23:03
    I'm way behind on understanding Bitcoin and blockchains. This definitely helped.
  • SS
    Sam S.
    27 December 2016 @ 15:25
    Lost profits on Bitcoin listening to TUUR last time he was on. I'll pass on potential, maybe's and I thinks. Opps.
  • jg
    james g.
    24 December 2016 @ 03:05
    outstanding presentation and answering questions made it doubly so
  • TA
    Trevor A.
    21 December 2016 @ 09:18
    @Gregg B. "How does the concept of colored coins/digitizing assets on the Blockchain play into your valuation of bitcoin, if at all?" This concept is essential to determining a Bitcoin valuation. Bitcoin based asset protocols such as Counterparty are making up a growing portion of the total Bitcoin transactions per day. Recently, that level is as high as 3-10% of total BTC transactions. Private blockchains are generally a mirage and that is a conversation too complex for a comment section. Bitcoin based asset protocols extend the promise of Bitcoin to finance more broadly.
  • JT
    Jayne T.
    20 December 2016 @ 17:27
    Just to clarify-you mentioned that -there are an estimated 15 million users and the user growth is estimated at 30,000 per week (or 1.56 million yearly)? This equates to roughly a 10% growth in users. Does this seem low?
  • de
    dale e.
    18 December 2016 @ 02:18
    This was amazing Only on RV would you ever here about this. Im just to old for this. When they flip the switch on the net your Bitcoin is gone. I will still have my Double Eagle. Super smart Kid. Wish i had a brain like his. Problem is can he change a flat tire?
  • KT
    Ken T.
    17 December 2016 @ 17:29
    Thanks for the presentation. Updates do serve a purpose. However, I wish you were more clear on the distinction between a bitcoin payment or remittance process/system and one that uses the block chain technology developed by the bitcoin developers. As to the later, you mentioned several including those related to real estate transactions and a few others. For me (I am not a trader) the use of the bitcoin developed block chain (not utilizing bitcoin the digital currency) is the most significant development and the one with the most promise to revolutionize current single source process/systems such as real estate transactions where ownership identification, validity and security is key.
  • TS
    Tim S.
    17 December 2016 @ 00:50
    I appreciated the video. I work in technology for > 30 years and have seen good concepts work as well as fail. I'm not bought into BitCoin only for the portability of value. In case of War or significant disruption gold and jewels have been use as portable wealth. I'm thinking in some of the hyperinflation locals where or in a war with EMPs and the shutdown of communications. I just don't see the concept playing out but I have been wrong many many times before.
  • TD
    Tuur D. | Contributor
    17 December 2016 @ 00:02
    "Thoughts on playing $GBTC?" With a premium over net asset value of 38%, one could try to short $GBTC while hedging the position with an equally large long position in actual Bitcoin bought on an exchange. The obvious risk is that there aren’t a lot of securitized Bitcoin assets out there, causing a bottleneck. If there’s a big Bitcoin rally, a stampede into $GBTC could push the premium much higher. That said, the premium has already dropped from above 60% to just below 40% now. And the desireability of $GBTC will drop significantly once a Bitcoin ETF is approved.
  • TD
    Tuur D. | Contributor
    16 December 2016 @ 23:58
    “Assume all of China miners go offline. What effect does that have?" That’s a great question! All Chinese miners offline in a day, that means that the hashrate of the network would instantly drop by about 60%. Because the difficulty of the network only adjusts every 2 weeks, the 40% of miners that remain would initially not be financially incentivised to try and increase their hashrate, and the discovery of new bitcoin blocks would (off the top of my head) slow down by an average of 60% — i.e. transaction confirmation would take an average of 16 minutes rather than the current 10 minutes. However, within a span of 2 weeks, the difficulty of the mining algorithm would automatically adjust downward, and transaction confirmation times would approach 10 minutes per block again. Profit margins of the non-Chinese miners would massively increase in this time (provided the price didn’t crash), incentivising them to invest in more mining equipment. In the span of perhaps 6 months, the hashrate would start approaching the difficulty levels from before China went offline, and the difficulty level would gradually be adjusted upwards as well. As far as security of the network goes, a drop of 60% would not significantly increase the risk of a 51% attack, except if the Chinese miners that went offline are under government control and are all at the same time switched on to try an attack. Even so, the damage a 51% attack can do is not insignificant but still limited. The 51% attacker can “hold the network hostage”, but it can’t change historic transactions. It’s also expensive to maintain and there are many strategies possible to counter the attack once it’s identified by the community.
  • TD
    Tuur D. | Contributor
    16 December 2016 @ 23:26
    "Any suggestions on what platforms are best/most secure to buy bitcoin?” For buying there are many options (in the US there is Coinbase & Genesis Trading, in Europe there’s Kraken for example - disclosure: I'm an investor in the latter). But the exchange ecosystem is still very young, difficult to ensure, and hacks have happened quite frequently. So I recommend diversification and holding a substantial amount in your own control, by the use of a hardware wallet. For that, have a look at Bitcoin Trezor for example. One of the more trusted Bitcoin custodians in the space is Xapo.
  • TD
    Tuur D. | Contributor
    16 December 2016 @ 23:10
    "With a war on cash starting, rumblings of limiting gold ownership in some countries and a general herding of wealth into controlled and taxed institutions,... Do you think government/institutional interference is a major threat in the next 3 years? Can you foresee bans or limitations being imposed?" Yes, I think that in the slipstream of “bans on cash" we will see “bans on bitcoin” in several countries - in the next 3-5 years. Just like with gold in the past, I expect these bans/taxations/limitations to be ineffective and thereby a source of embarrassment for the governments trying to enforce them. At the same time we’ll see other governments embracing Bitcoin as a source of financial & technological innovation, even encourage its use - sometimes as part of monetary foreign policy strategies. Because Bitcoin is an open source, decentralized protocol, it cannot be effectively outlawed, just like peer-to-peer filesharing was never effectively outlawed. The end result will be a leaner legacy financial system that adapts to the new reality, like the music industry adapted to a world in which it had to compete with extremely cheap file sharing communities.
  • TD
    Tuur D. | Contributor
    16 December 2016 @ 21:32
    "Assuming unbanked customers in India with smartphones will adopt Bitcoin is crazy thinking.” You may be right, I could be overestimating the potential for Bitcoin to catch on among the unbanked. Still, I think it’s not a ludicrous hypothesis. I look at Kenya as an example of mobile cash adoption may happen. In 2007, local telecom company Safaricom launched M-Pesa there, a form of digital cash people can use from their mobile phones. It’s been a massive success, with currently over 20 million using the currency (Kenya population of +15 year olds is 26 million, total population is 43 million). Research by Tavneet Suri and Billy Jack shows that "in 2008 fewer than 20 percent of the population outside the capital living on less than $1.25 per day used M-PESA, but by 2011 this share had steadily expanded to 72 percent.” Kenya has a literacy rate of 78% compared to India’s 74%. Of course, there may be particular factors that I may be overlooking in the case of India, my knowledge of the country is limited.
  • TD
    Tuur D. | Contributor
    16 December 2016 @ 21:19
    “What are the risks to Bitcoin in terms of the decision around increasing the blockchain size?” I assume you refer to the block size debate here. The main risk is that we get a controversial hard fork, where one cohort of miners moves to a new version of Bitcoin with bigger blocks, while another cohort stays mining the old 1mb block protocol. Long term the market would sort it out, with one chain gravitating towards very low market value and another towards market dominance (due to the network effect), but short term it would likely cause confusion and a price slump. I think this is an unlikely scenario though, there is little division among the ca. 100 core devs that make up the “Bitcoin core” group, and there’s a broad consensus to move towards a segwit soft-fork with high volume produced on the lightning network, i.e. to keep the block size small for the short to medium term.
  • DS
    David S.
    16 December 2016 @ 19:34
    With so many illegal uses of Bitcoin, a major risk seems to be governments using Bitcoin information to track criminal transactions or making Bitcoin transactions illegal. I purchased Bitcoins, but I am worried about governmental risk. DLS
  • JD
    Josh D.
    16 December 2016 @ 15:30
    Thoughts on playing $gbtc?
  • SL
    Steven L.
    15 December 2016 @ 20:07
    Tuur, for the sake of discusssion, assume all of China miners go offline. What effect does that have?
  • KS
    Karthik S.
    15 December 2016 @ 18:12
    hi. Great presentation and very informative. Any suggestions on what platforms are best/most secure to buy bitcoin? Not able to find one that has generally good reviews. thanks!
  • JM
    James M.
    15 December 2016 @ 15:35
    Tuur, thanks for the video. With a war on cash starting, rumblings of limiting gold ownership in some countries and a general herding of wealth into controlled and taxed institutions, do you think government/institutional interference is a major threat in the next 3 years? Can you foresee bans or limitations being imposed?
  • FH
    Fai H.
    15 December 2016 @ 11:20
    like to hear more about blockchain - thats where I see the most value - esp. smart contracts - smart CDS anyone ; )
  • PN
    Paul N.
    15 December 2016 @ 07:07
    The Winklevoss Twins would also have a good insight into the bitcoin system, seeing as how they've been working for 3 or so years on launching the Bitcoin ETF (COIN) which is going to be traded on the BATS exchange.
  • BC
    Ben C.
    15 December 2016 @ 05:46
    Excellent presentation - thank you Tuur and RVTV! I have been following Tuur on Twitter since his first RVTV presentation, and have found him to be the most informative voice of reason for cryptocurrencies on Twitter. Tuur - thank you for your constant self-fact-checking and reporting updates on your views and predictions. Raoul - I'm also interested to hear more about your reasons for selling BTC recently.
  • JL
    J L.
    15 December 2016 @ 05:35
    Excellent, could be made a monthly update for those not directly involved in the btc world. It would also be great to hear an opinion on what effect regulation or a straight exchange ban in certain countries might have.
  • RR
    Raj R.
    15 December 2016 @ 04:58
    The whole world is not like the west. Such thinking is biased
  • RR
    Raj R.
    15 December 2016 @ 04:57
    Assuming unbanked customers in India with smartphones will adopt Bitcoin is crazy thinking. These are people without much education. They will run to gold before they run to Bitcoin. The whole world i
  • TD
    Tuur D. | Contributor
    15 December 2016 @ 03:08
    "How does the concept of colored coins/digitizing assets on the Blockchain play into your valuation of bitcoin, if at all?” In my view Colored coins/digitizing assets play an important role when thinking about a +4y horizon for Bitcoin. Using the Bitcoin blockchain to securely issue and register financial assets is one of the great promises of the Bitcoin second layer protocols, enabling Bitcoin to leap from “digital gold” and “payment rails" to “internet of property”, which would deeply disrupt legacy finance models. If the colored coins infrastructure layer is actually built (which I think it will, only perhaps not as fast as many would hope) I think this would increase Bitcoin's potential value by at least another order of magnitude.
  • TD
    Tuur D. | Contributor
    15 December 2016 @ 01:52
    "Isn't GBTC a bitcoin ETF?" No, it's an over the counter security, backed by a fixed amount of Bitcoin (about 172,000 btc). This is unlike ETFs, which purchase more of the underlying asset as demand rises and so tend to mimic the price. Because of its fixed underlying value and it being the only accessible securitized bitcoin product so far, $GBTC currently trades at a premium above net asset value of 39%. More here: http://grayscale.co/bitcoin-investment-trust/
  • GB
    Gregory B.
    15 December 2016 @ 01:16
    How does the concept of colored coins/digitizing assets on the Blockchain play into your valuation of bitcoin, if at all?
  • WE
    William E.
    14 December 2016 @ 22:02
    Isn't GBTC a bitcoin ETF?
  • Nv
    Nicholas v.
    14 December 2016 @ 21:44
    Great presentation as usual, thanks Tuur. A question for you: what are the risks to Bitcoin in terms of the decision around increasing the blockchain size?
  • GG
    George G.
    14 December 2016 @ 20:53
    Tour is a good rep for bitcoin but I agree with Paul that Andreas A is probably the best spokesman and explainer of crypto ...btw I would like to know why Raoul sold half is btc recently according to a tweet?
  • TD
    Tuur D. | Contributor
    14 December 2016 @ 20:25
    Hi everyone, happy to hear your comments or questions. Two small corrections: Satoshi Dice launched in 2012, not 2011. And Malware Bytes' survey found that 47% of US companies was affected by ransomware in the past 12 months (not "over 50%").
  • PN
    Paul N.
    14 December 2016 @ 20:21
    I think interviewing some of the top core developers working on the bitcoin protocol would also be great e.g. Adam Back, Peter Todd, Eric Lombrozo. Not to say that Tuur doesn't know his stuff - great presentation! Some additional resources for people wanting to learn more: The Bitcoin Knowledge Podcast (Trace Mayer) and Andreas Antonopoulos' channel on Youtube (aantonop).
  • GC
    Gary C.
    14 December 2016 @ 20:14
    Turr, great job, appreciate your honest appraisal of all aspects, even dark uses. For other readers Andreas Antonopolos has good Youtube lectures and 2 published books.
  • PN
    Paul N.
    14 December 2016 @ 20:08
    Interview Andreas Antonopoulos on Bitcoin. Best voice in the industry.

Mark Yusko

Morgan Creek Capital Management, Co- Founder, CEO, & CIO

Mark Yuskois the Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management. He is also the Managing Partner of Morgan Creek Digital Assets. Morgan Creek Capital Management was founded in 2004 and currently manages close to $2 billion in discretionary and non-discretionary assets. Prior to founding Morgan Creek, Mr. Yusko was CIO and Founder of UNC Management Company (UNCMC), the Endowment investment office for the University of North Carolina at Chapel Hill. Before that, he was Senior Investment Director for the University of Notre Dame Investment Office.Mr. Yusko has been at the forefront of institutional investing throughout his career. An early investor in alternative asset classes at Notre Dame, he brought the Endowment Model of investing to UNC, which contributed to significant performance gains for the Endowment. The Endowment Model is the cornerstone philosophy of Morgan Creek, as is the mandate to Invest in Innovation. Mr. Yusko is again at the forefront of investing through Morgan Creek Digital Assets, which was formed in 2018. Morgan Creek Digital is an early stage investor in blockchain technology, digital currency and digital assets through the firm’s Venture Capital and Digital Asset Index Fund.Mr. Yusko received a BA with Honors from the University of Notre Dame and an MBA in Accounting and Finance from the University of Chicago.

Anthony Scaramucci

SkyBridge Capital, Founder & Co-Managing Partner

Prior to founding SkyBridge in 2005, Scaramucci co-founded investment partnership Oscar Capital Management, which was sold to Neuberger Berman, LLC in 2001. Earlier, he was a vice president in Private Wealth Management at Goldman Sachs & Co. In 2016, Scaramucci was ranked #85 in Worth Magazine’sPower 100: The 100 Most Powerful People in Global Finance. In 2011, he received Ernst & Young’s “Entrepreneur of the Year –New York” Award in the Financial Services category. Anthony is amember of the Council on Foreign Relations (CFR), vice chair of the Kennedy Center Corporate Fund Board, a board member of both The Brain Tumor Foundation and Business Executives for National Security (BENS), and a Trustee of the United States Olympic & Paralympic Foundation. He was a member of the New York City Financial Services Advisory Committee from 2007 to 2012. In November 2016, he was named to President-Elect Trump’s 16-person Presidential Transition Team Executive Committee. In June 2017, he wasnamed the Chief Strategy Officer of the EXIM Bank. He served as the White House Communications Director for a period in July 2017. Scaramucci, a native of Long Island, New York, holds a Bachelor of Arts degree in Economics from Tufts University and a Juris Doctor from Harvard Law School.

Michael Saylor

MicroStrategy, Co-Founder

Mr. Saylor is a technologist, entrepreneur, business executive, philanthropist, and best-selling author. He currently serves as Chairman of the Board of Directors and Chief Executive Office of MicroStrategy, Inc. (MSTR). Since co-founding the company at the age of 24, Mr. Saylor has built MicroStrategy into a global leader in business intelligence, mobile software, and cloud-based services. In 2012, he authoredThe Mobile Wave: How Mobile Intelligence Will Change Everything, which earned a spot onThe NewYork TimesBest Sellers list. Mr. Saylor attended the Massachusetts Institute of Technology, receiving an S.B. in Aeronautics and Astronautics and an S.B. in Science, Technology, and Society.

Alex Saunders

Nugget's News, Founder & CEO

Alex Saunders is the founder and CEO of Nugget’s News, a digital media company focused on all things crypto. Alex has been captivated by cryptocurrency since 2012 and in 2017 he began educating globally on the benefits of cryptocurrency and how to safely acquireit. Nugget’s News has been listed as a top-20 podcast by Business Insider, ShapeShift and Lifehacker and has over 120k YouTube subscribers with 9 million total views.Alex is also heavily focused on his cryptocurrency education platform Collective Shift which currently serves over 4,500 members. provides his unique perspectives by utilising his expertise in fundamental analysis, technical analysis and market sentiment. He is working towards his mission of making it easier for everyone to understand the financial world.

James Putra

TradeStation Crypto, Inc., Sr. Director of Product Strategy

James helped launch TradeStation Crypto’s offeringwhichutilizesa true online brokerage model that self-directed investors and traders have come to expect for equities, futures,and foreign currency markets. He is a reputed crypto asset specialist and blockchain thought leader focused on helping people find innovativeways to participate in this space. He is active in the blockchain community with speaking engagements, TV appearances and mentoring.James has over 15 years of experience in the Fintech industry.

Raoul Pal

Real Vision, Co-Founder & CEO

Raoul Pal is the Co-Founder and CEO of Real Vision, the world’s pre-eminent financial media platform, which helps members understand the complex world of finance, business, and the global economy. Real Vision members also have access to Real Vision Crypto, a cryptocurrency and digital assets video channelwatched by over 80,000 people.In addition, Raoul has been publishing Global Macro Investor since January 2005 to provide original, high quality, quantifiable and easily readable research for the global macro investment community hedge funds, family offices, pension funds and sovereign wealth funds. It draws on his considerable 31 years of experience in advising hedge funds and managing a global macro hedge fund. Global Macro Investor has one of the very best, proven track records of any newsletter in the industry, producing extremely positive returns in eight out of the last twelve years. He retired from managing client money at the age of 36 in 2004 and now lives in the tiny Caribbean island of Little Cayman in the Cayman Islands. Previously he co-managed the GLG Global Macro Fund in London for GLG Partners, one of the largest hedge fund groups in the world. Raoul moved to GLG from Goldman Sachs where he co-managed the hedge fund sales business in Equities and Equity Derivatives in Europe. In this role, Raoul established strong relationships with many of the world’s pre-eminent hedge funds, learning from their styles and experiences. Other stop-off points on the way were NatWest Markets and HSBC, although hebegan his career by training traders in technical analysis.

Peter McCormack

What Bitcoin Did, Journalist

Peter McCormack is a full timejournalist/podcaster covering topics such as Freedom, Human Rights, Censorship and Bitcoin. Peter created and hosts the What Bitcoin Did Podcast, a twice-weekly Bitcoin podcast where he interviews experts in the world of Bitcoin development, privacy, investment and adoption. Launched in November of 2017, the podcast has grown to over 100 episodes with a guest list that is a testament to the diversity of knowledge and opinions that represent the broader Bitcoin community. Expanding his growing list of humaninterest recordings, documentaries and films Peter has recently launched theDefiancepodcast andDefianceTV.

Caitlin Long

Avanti Financial Group, Founder & CEO

22-year Wall Street veteran who has been active in bitcoin and blockchain since 2012. In 2018-20 she led the charge to make her native state of Wyoming an oasis for blockchain companies in the US, where she helped Wyoming enact 20 blockchain-enabling laws. From 2016-18 she jointly spearheaded a blockchain project for delivering market index data to Vanguard as chairman and president of Symbiont, an enterprise blockchain start-up. Caitlin ran Morgan Stanley’s pension solutions business (2007-2016), heldsenior roles at Credit Suisse (1997-2007) and began her career at Salomon Brothers (1994-1997). She is a graduate of Harvard Law School (JD, 1994), the Kennedy School of Government (MPP, 1994) and the University of Wyoming (BA, 1990).

Hunter Horsley

Bitwise Asset Management, CEO

Hunter Horsley is Chief Executive Officer of Bitwise Asset Management. Prior to Bitwise, he was a product manager at Facebook, working on advertiser products including the multibillion-dollar sponsored content ecosystem and ad breaks in videos. Before Facebook, Horlsey was a product manager at Instagram, responsible for multiple advertising products generating several hundred million dollars of revenue. He is a graduate of the Wharton School at the University of Pennsylvania, with a B.S. in economics. Recently, Horsley was named a member of Forbes’ 2019 “30 Under 30” list.

Luke Gromen

Forest For The Trees, Founder & President

Luke Gromen has 25 years of experience in equity research, equity research sales, and as a macro/thematic analyst.He is the founder and president of macro/thematic research firm FFTT, LLC, which he founded in early 2014 to address and leverage the opportunity he saw created by applying what clientsand former colleagues consistently described as a “unique ability to connect the dots” during a time when he saw an increasing “silo-ing” of perspectives occurring on Wall Street and in corporate America.FFTT caters to institutions and sophisticated individuals by aggregating a wide variety of macroeconomic, thematic and sector trends in an unconventional manner to identify investable developing economic bottlenecks for his clients.Prior to founding FFTT, Luke was a founding partner of Cleveland Research Company, where he worked from 2006-14.At CRC, Luke worked in sales and edited CRC’s flagship weekly thematic research summary piece (“Straight from the Source”)for the firm’s clients.Prior to that,Luke was a partner at Midwest Research, where he worked in equity research and sales from 1996-2006.While in sales, Luke was a founding editor of Midwest’s widely-read weekly thematic summary (“Heard in the Midwest”) for the firm’s clients, in whichhe aggregated and combined proprietary research from Midwest with inputs from other sources.Luke Gromen holds a BBA in Finance and Accounting from the University of Cincinnati and received his MBA from Case Western Reserve University.He earned the CFA designation in 2003.

Meltem Demirors

CoinShares, Chief Strategy Officer

Meltem Demirors is Chief Strategy Officer of CoinShares, an investment firm that manages billions in assets on behalf of a global investor base, and is a trusted partner to investors and entrepreneurs navigating the digital asset ecosystem. Meltemoversees the firm’s managed strategies group and its New York office and leads corporate development. Previously, she was part of the founding team of Digital Currency Group. As a veteran investor in the digital currency space, she has invested in over 250 companies in the ecosystem. Meltem is passionate about education and advocacy, and teaches the Oxford Blockchain Strategy Programme and co-chairs the WEF Cryptocurrency Council.