The Macro Case for Bitcoin

Published on
August 23rd, 2019
Duration
10 minutes


The Macro Case for Bitcoin

Perfect Timing ·
Featuring Dan Tapiero and Raoul Pal

Published on: August 23rd, 2019 • Duration: 10 minutes

Dan Tapiero, co-founder of Gold Bullion International, joins Real Vision CEO and co-founder Raoul Pal to discuss where bitcoin fits into the new global macroeconomic picture. Tapiero says that bitcoin and other cryptocurrencies are still in their infancy, and argues that the market’s lack of meaningful understanding of what bitcoin really is presents a unique opportunity to get in early. This clip is excerpted from a video published on Real Vision on July 22, 2019 entitled "The Future of Macro Investing."

Comments

Transcript

  • jb
    jagtinder b.
    1 September 2020 @ 20:25
    1933 Executive order Forbid Gold Hoarding. What prevents the Government (US or China) from essentially banning or curtailing Bitcoins. Why could'nt governments pass orders (like make it illegal to trade with them) on bitcoin to scare people from buying them Here are some online arguments how it could be done: The key with taking down any kind of technical infrastructure is not to attack the cryptographic algorithms that are designed to withstand attacks, but to squeeze all the players behind the scenes who hold the keys. It's a lot easier to hit a guy with a wrench than it is to break AES. In bitcoin land the players are: exchangers, miners, sellers and consumers. Exchangers are by far the cheapest to take down, followed by the miners, then by the sellers, and finally by the consumers. Taking down exchangers is a simple money laundering operation. Investigate principals of all major bitcoin exchangers and holders for money laundering. Freeze all their assets in the process, causing the prices to crash. Make sure all the take downs are simultaneous to have the maximum shock and awe. Nothing makes people lose their faith in currency faster than not having access to it anywhere (see bank runs). The next thing you want to do after killing exchanges, is to kill the network. Miners have undergone extensive centralization and consolidation as the returns of mining bitcoin have fallen. They require lots of power, cooling, specialized chips, employees and are located in specific data centres throughout the world. All of these can be fairly easily tracked down. Go after them for money laundering and tax evasion. The charges can be trumped up, they can be falsified, or they can be real. All that matters is that you seize and take down as many major mining clusters as you can as quickly as possible.
  • BT
    Brett T.
    29 August 2019 @ 07:36
    I still don't get the case for crypto. Sure, there might be some trading profits available and certainly Bitcoin is the name synonymous with crypto. But I have one major problem (after the energy usage, that is) that is bigger than the structural mechanism by which Bitcoin will increase in value. Governments are not going to give up control of the currency. All of them are already planning their own "official" cryptos, which have the added benefit of removing physical cash (coins & notes) from the financial system. Removing cash shuts down 'black market' transactions that governments have been wanting their tax share of for years. These official cryptos will also enable greater control of taxation because everything is digital and trackable. Once official government cryptos are established all others will be made illegal (just like owning physical gold has been in the past & will be again in the future). Governments will claim that non-official cryptos are only used by money-launderers & terrorists and will use existing AML legislation to shut these avenues down. Some governments have already banned certain cryptos using AML laws. So, what I think governments WILL ALLOW is the existing established monetary system to go digital but will not permit other frameworks to exist outside of it unless the gateway entities agree to fall into full compliance with AML laws. Governments will work together to make it so. They take their ability to tax very seriously - their livelihoods depend upon it.
    • CT
      Crispim T.
      13 October 2019 @ 21:26
      The energy use is not a problem, it is exactly what is needed to secure the network. Governments are irrelevant. BTC doesn't care. There's no Bitcoin CEO. The protocol keeps working. 11 years now.
    • EC
      Elliott C.
      5 April 2020 @ 04:51
      Agreed, Money is the fuel that runs governments. They will never give up their power to control it. Even if the system is distributed and secure, they can ban it, push it underground. China has censored their internet, created a separate ecosystem. How can you buy a cup of coffee with bitcoin if the government has banned it?
  • JD
    J D.
    27 January 2020 @ 11:52
    Great content. Good to see Dan sharing his view. Thankyou.
  • WR
    Warren R.
    30 August 2019 @ 19:33
    A new cryptocurrency will be created by G7 nations (likely more) to provide a monetary shift away from fiat currencies in order to bail out the enormous amount of debt held by these countries. I don't know when it will happen but when it happens it will not be bitcoin. Once this occurs bitcoin will have limited value.
    • LM
      Locky M.
      14 October 2019 @ 13:13
      Any new cryptocurrency like this will be nothing new, just fiat repackaged and still centralised. Bitcoin's value will continue growing as decentralised and censorship resistant money.
    • RF
      Raphael F.
      17 November 2019 @ 01:40
      Bitcoin benefits from the network effect, don't understimate it
  • CT
    Crispim T.
    21 October 2019 @ 13:08
    Gold markets are heavily manipulated and the most centralized of them all, even excluding central banks. Bitcoin/BTC is the safest bet for the next decade. Gold won't go the way of Nokia and Kodak but it's going to lose A LOT of its cap to BTC in 10 years - in the same way it lost the past ten. Bitcoin is up 83,331.79% since gold topped out at $1800 seven years ago. What's it like hodling a -20% gold bag for seven years? Shorting BTC won't come cheap.
  • EA
    Emma A.
    25 August 2019 @ 03:27
    I've been in bitcoin for several years and this video didn't really make a case for it. It would be great if you could invite someone who knows more about it. To clear up some confusion, Lightning Network is a second-layer scaling solution, which means it sits on top of bitcoin. It doesn't make bitcoin itself faster or more flexible. Instead, it lets people transact within a different, much faster and cheaper system, and all those transactions eventually gets settled in bitcoin. It lets bitcoin scale because you are not recording all the individual transactions on the main blockchain, but only the end result. This entire network of second-layer transactions is anchored to the original bitcoin blockchain, without adding the bulk of all these transactions to it. It is essentially a way to off-load small transactions to a different system, so there is more room on the main chain. It is still in development and it is one of many scaling options being worked on.
    • NS
      Nir S.
      9 October 2019 @ 16:40
      Thanks Emma, that help me better unstained the Lightning Network.
  • as
    andrew s.
    2 September 2019 @ 07:59
    I read somewhere that 90% of all bitcoin held by 360 addresses, that does not sound like a global currency
    • NS
      Nir S.
      9 October 2019 @ 16:32
      That's not correct, please look here: https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html
  • NI
    Nate I.
    26 August 2019 @ 17:07
    A substance needs seven properties to endure as money. It needs to be: fungible, divisible, scarce, uniform, portable, durable, and useful. That isn't terribly controversial. Bitcoin passes most of the tests, but it's not inherently useful. Unlike gold, I can't use bitcoin to make jewelry, dental crowns, electronics and a myriad of other things. In fact, if gold wasn't so scarce (aka expensive), it would be used for thousands of things. Toilets would be gold and humanity wouldn't need Lysol bowl cleaner :-) With bitcoin, all I can do is to quasi-anonymously sell/transfer it to someone else. Novel to be sure, but not useful. Money will be made by traders nimble enough to buy low and sell high, but bitcoin will not endure unless it becomes inherently useful. There is also a problem with blockchain being very slow and expensive (in electric power use). That problem is being feverishly worked on and better answers/algorithms are emerging. Another millstone around bitcoin's neck. Bitcoin deserves a place in the Smithsonian for the ground breaking development of blockchain, but not in your investment accounts.