Banking the Future

Published on
July 22nd, 2020
Duration
70 minutes

Druckenmiller Protege on Tech Investing and Developing Your Own Framework


Banking the Future

The Interview ·
Featuring Simon Dixon

Published on: July 22nd, 2020 • Duration: 70 minutes

Simon Dixon, CEO of bnktothefuture.com, joins Real Vision CEO, Raoul Pal, to break down the intersection of the crypto world and the world of traditional finance. Starting his career in investment banking and joining the monetary reform movement along the way, Dixon understood early on the shortcomings of the fiat money system. He and Pal talk about applying traditional financial ideas to the crypto world and argue that doing so will create a stronger financial system for the future. Pal and Dixon discuss the early days of bitcoin, the intersection between central banks and crypto technologies, and their ideas about the relationship between bitcoin, dollars, and gold. Finally, they talk about how the principles of behavioral economics could impact the interplay between fiat currencies, cryptocurrencies, and the composition of future of financial markets. Filmed on July 17, 2020.

Comments

Transcript

  • JA
    JN A.
    3 August 2020 @ 07:23
    Who knew Ali G was so well versed in Economics? #booyakkasha
  • TN
    Tim N.
    23 July 2020 @ 07:53
    Simon has lost credibility in my eyes by mentioning Max Keiser
    • TE
      Tito E.
      24 July 2020 @ 16:12
      I'm sure he's devastated
    • JG
      Joshua G.
      3 August 2020 @ 04:31
      Max can be a nut but he's no dummy
  • TM
    Tony M.
    2 August 2020 @ 02:51
    Well worth a listen. No hype just interesting facts and details
  • AA
    Amilcar A.
    1 August 2020 @ 17:40
    One of the best Realvision interviews. BTC is unstoppable.
  • PT
    Peter T.
    28 July 2020 @ 23:01
    Need to get just one or two country's to adopt BTC and opt out . Then the power shifts. Start at home by voting out incumbent politicians thieves !!!!!!!
  • RS
    R S.
    28 July 2020 @ 00:14
    He is promoting a $6M microcap altcoin. Does Real Vision have a lower threshold on market capitalization?
  • KD
    Krys D.
    27 July 2020 @ 22:49
    Great interview, thank you
  • TP
    Tom P.
    27 July 2020 @ 22:14
    Off topic, but is that Brighton?
    • TP
      Tom P.
      27 July 2020 @ 22:22
      Sorry, it is not.
  • sc
    steve c.
    22 July 2020 @ 17:01
    I agree that it is the best interview you have done on Realvision this year! I can only assume that the dislike button has been pressed by the 'traditionalists' who do not like to embrace change and those who still do not understand the Crypto space. I do think it is time that Realvision changes strategy with more emphasis on 'Crypto' and maybe a little less on the traditional equities space. My personal portfolio has changed due to the COVID19 and is now zero % equities. Instead, I am holding 25% Crypto (Bitcoin, Eth, Ada) 25% USdollars, 25% precious metals (Gold, Silver) and 25% cash for 'other opportunities'.
    • KB
      Keith B.
      22 July 2020 @ 18:18
      Why ADA?
    • GT
      Gene T.
      22 July 2020 @ 18:26
      i.e. you're holding the Raoul Pal portfolio
    • ac
      adam c.
      22 July 2020 @ 19:29
      I think they cover Crypto quite a lot and I like the fact that the content actually covers a very broad spectrum. We don't want to fall into the trap of being equally closed minded in the opposite direction. To see dangers and opportunities we probably need to keep our vision as wide as possible.
    • GA
      Gus A.
      22 July 2020 @ 21:29
      sell your ada
    • JM
      Justin M.
      23 July 2020 @ 02:22
      sell your eth buy more ada ;)
    • NI
      Nate I.
      23 July 2020 @ 04:31
      The traditionalists could be right about BTC, only time will tell but they need this content far more than the crypto believers. I always pay the most attention to the videos that are contrary to my opinion. That's how I avoid making costly mistakes (see if someone else thought of something I didn't). The traditionalists should be the ones giving it the most thumbs up. I have some doubts about BTC, but I would give this video two thumbs up if I could because it got me thinking about a couple things.
    • MG
      Mac G.
      26 July 2020 @ 03:52
      Downvoted due to bullshit promotion of ADA.
    • NA
      N A.
      27 July 2020 @ 06:33
      Wait 0% equities but 25% USD (in cash?) and another 25% in cash? So you are 50% cash and you hold precious metals and crypto only basically. That's cool if it works out but terrible portfolio management.
  • SB
    Stephen B.
    27 July 2020 @ 02:57
    That was the best analysis that i have ever heard as to what the reset might look like. What a good brain Simon has! One day we wake up and are told our US$ bank deposits have been converted to CBDC's. That is very similar to what happened in Argentina in 2000 (except they were converted to devalued pesos). Simon recognizes that CBDC's will be misused, however, but is OK with that provided we have the non - manipulated alternative of Bitcoin as a competitor to that system. Simon theorizes that if a Government seeks to block Bitcoin, another would seek a competitive advantage by adopting it. Maybe, but i fear Simon is overly optimistic. Surely, a CBDC would be global, organized either by the BIS (95% of global GDP) or the IMF, who would engage in an all out war against Bitcoin, banning exchanges etc. In such an all out war, it is hard to see Bitcoin prospering.
  • MT
    Mark T.
    22 July 2020 @ 18:02
    I just can't escape the suspicion that Bitcoin is created by and a tool for the Russian intelligence agency, i.e. Putin.
    • AN
      Andrew N.
      22 July 2020 @ 20:10
      If that was the case I would expect more of the mining hashrate to come from Russia.
    • AH
      A H.
      22 July 2020 @ 21:23
      the KGB? Or the Bolshevik tribe?
    • AJ
      Alvin J.
      22 July 2020 @ 21:43
      Russia is printing money just like all the other economies. It wouldn't make sense to devise such a brilliant system (blockchain technology) and not see the positive implications of it and not use for the betterment of your own country.
    • JS
      John S.
      22 July 2020 @ 21:51
      Russia!!!
    • PB
      PHILLIP B.
      23 July 2020 @ 01:33
      What is the basis for this suspion?
    • LS
      Lemony S.
      25 July 2020 @ 16:31
      Probably another bottom feeder of the globalist pawn scheme. Russia is the enemy, you know, every white christian male leader is evil, he has to be. Russia I'm sure would be a paradise if a black woman ruled it, right?
    • SB
      Stephen B.
      27 July 2020 @ 02:12
      If an intelligence agency is behind Bitcoin, it is much more likely to be the CIA.
  • AB
    AJ B.
    24 July 2020 @ 16:32
    Bitcoin is fiat. Bitcoin has no intrinsic value. Since it has no intrinsic value, I must trust that others will accept it as payment for me to accept it as payment. It is ironic that the Bitcoiners and Mr. Dixon do not understand this dynamic. Mr. Dixon went so far as to criticize the dollar and champion bitcoin in this interview. They are the same tool. The only difference is the bitcoin community has "promised" not expand the supply. And even if the promise is kept there will be Bitcoin 2, MitCoin, DitCoin, etc. The supply will be endless. For the financial revolution to occur Mr. Dixon and the Bitcoiners must understand that you need physical commodities tethered to the digital currency. Unfortunately Mr. Dixon does not give credence to this idea, because when asked, he seemed to poo poo Ethereum because it was too "complex". I am not saying Ethereum is the answer, but having digital currency backed by physical commodities is the answer. Also, the storing of gold argument is a complete farce. If you had $5M of gold (which would be a lot for 99% of the population) it would be 2,777 ounces or 173 lbs. It's like storing a few dumbbells in your home safe. Sure, you have to make prudent security efforts, but Bitcoiners act like a nefarious actor couldn't make them give up their bitcoin password if they were locked up in a warehouse where no one could hear them scream.
    • PG
      Petter G.
      24 July 2020 @ 19:01
      Hi AJ, Great to see that you've started thinking about Bitcoin. However, these arguments have been around for as long as Bitcoin has been alive. See below for some rebuttals. - Intrinsic value I'm assuming by "intrinsic value" you mean some sort of non-monetary value. Sure, gold has it's industrial uses but so does Bitcoin. Most notably, Bitcoin (and other cryptocurrencies) are used for global remittances. It's a huge market where BTC is making an impact right now by bringing faster settlement speeds and lower fees. - Easily copied Bitcoin can be copied just as easily as the internet itself. Or say Facebook, Amazon or Ebay. It's not impossible but as you might understand it's very very hard to do so. People use Bitcoin because a lot of other people also use it. The "network effects" gets more and more powerful the more people joins the network. This is why it's so hard to displace. - Storage Gold and Bitcoin both have their pros and cons when it comes to storage. If you're going to store these assets by yourself (no third parties involved) then I'd say gold is somewhat easier to store and keep safe. However, in the world of Bitcoin you can setup a wallet where 2/3 or 3/5 keys are required to move the funds which makes it very hard for a criminal to force the BTC out of your hands (since you only control 1 of these keys). Also, if you plan to take your gold/BTC across borders then BTC is on a whole other playing field as you literally can store your keys in your head (by memorizing the recovery seed of your wallet).
    • LS
      Lemony S.
      25 July 2020 @ 16:21
      The intrinsic value argument is so tired; as if gold has real intrinsic value for any given individual. It's the same concept, we just claim it does. All gold has that is any different is legacy. Period. It's hard to produce more gold out of thin air, but it can slowly be found. With bitcoin the scarcity is even more refined and portability make it shine (no pun intended) way beyond gold. Most people aren't very honest about these facts. I'm not saying bitcoin will ever be adopted in the way that a lot of people think it can, but that doesn't mean it can't. Of course it can fulfill all the properties of money and no, it's not fiat. Be honest and truly critical in your thinking next time, AJ.
    • MG
      Mac G.
      26 July 2020 @ 03:01
      Fiat means "by decree" of government. WTF are you talking about?
    • DJ
      David J.
      27 July 2020 @ 02:02
      AJ, I agree with most of your concerns regarding crypto. I decided to add it to my portfolio for the following reasons; 1. I think we can all agree central bank backed currencies are facing unprecedented challenges 2. I wanted to augment my gold/silver positions with another asset class that was outside the traditional financial system 3. Regardless of what people's opinions are, crypto in general and bitcoin particular are gaining more widespread acceptance (example payal/Paxful partnership) and there is a huge upside potential for crypto if it becomes a 1/2 or even 1/4 the market cap of gold Bitcoin and all other cryptos could go to 0 sure, but I think there is larger chance they continue their current trajectory and gain a larger market share. If that happens the central banks will create an ever growing demand for them regardless of the occupant of the White House.
  • RO
    Rodrigo O.
    26 July 2020 @ 23:43
    Great interview. Amazing content. Congrats! I think would be interesting to go deeper into digital nonfractional banking. How it works. Advantages and disadvantages compared with the current one. And how etherium and tokens could help to "expand" the money supply. And more discussions, including other people, about how to deal with and the consequences of a scenario where bitcoin becomes illegal. Possible unfoldings and unattended reflections of its complexity. Because the ability to keep the traditional monetary system, which will definitely turn digital and highly centralized, in check is the key factor of this revolution to create a better financial world for all. And, of course, central banks will certainly dislike that kind of regulation.
  • WT
    WILLIAM T.
    23 July 2020 @ 20:19
    Great interview! I'm glad to see Raoul is beginning to realize there is a crypto world far beyond BTC. Even more interesting are the comments here. It would be interesting to see the ages of the commenters. I'm relatively old at 75, but I see an an amazing amount of talent and brainpower at work on blockchain projects that will totally revolutionize finance, healthcare, supply chain, energy, automotive, etc. If some are thinking BTC is the only game in town, they have blinded themselves to the many use cases and investment opportunities for blockchain projects. Just as the Internet completely changed many businesses, blockchain promises to do the same. We're probably at the same early stage of development the Internet was in 1992, and I believe there are many opportunities ahead for those who do some open-minded research. Exciting times!
    • DD
      Daniel D.
      25 July 2020 @ 19:05
      William, You're not old at all. I couldn't have said it better at 20 years your junior.
    • BB
      Benjamin B.
      26 July 2020 @ 23:12
      What a great comment! I remember getting my first email address at the age of 14 in '94 and realizing that the Internet was probably going to revolutionize retail. But it was really hard to get any traction with investors at the time, as it is now for many crypto entrepreneurs. It was so easy to get ahead of the market and at the same time miss out on the ripe opportunities. Back in the 90s, one of the arguments against e-commerce was that "no one" would dare to put their credit card information online, where it could so easily be stolen. The credit card companies didn't even have to improve their security systems to put people at ease, that just made it a moot argument by promising to cover the risk, knowing full well that there were more than enough transaction-derived profits to cover the down side. Who is going to be the first to figure out how to support quality journalism by creating a functional micro-payment system for "reader to journalist" transactions? RV is doing a really great job of introducing us to amazing people, but I'm missing a way to go deeper, to ask questions and hear the counter arguments. Anyone else found something?
  • BB
    Benjamin B.
    26 July 2020 @ 22:33
    This is the best summary of everything I've learned on RV during the last 12 months or so. - confirming that fiat money is private debt creation based, as Prof. Werner explained - that Bitcoin has already affected the traditional financial system, simply by existing as an alternative - that the motivational factors for introducing CBDC's are increasing and pose a significant disruption risk - make sure you have a multi-tier hedging strategy that removes the need for emotional commitment to a single asset class
  • Md
    Matthew d.
    26 July 2020 @ 20:54
    Best line of the entire interview => “When someone asks ‘do you want to sell bitcoin’, I hear ‘do you want to buy dollars’”
  • JB
    Jose B.
    26 July 2020 @ 20:22
    One of the most interesting interviews on RV ever
  • IN
    I N.
    26 July 2020 @ 15:15
    "Competing financial systems" keeping eachother in check. Profound. Never thought of this kind of duality. Can see benefits and perils. Also, excellent points on finance, privacy, behaviour, and policy.
  • ig
    ian g.
    26 July 2020 @ 04:56
    Thank you Simon and Raoul . To all the non crypto enthusiasts ! We are not here to convince you and bore you with facts, I can see you have already made up your mind ! But be sure of this - Gold, silver ,Fiat the old legacy banking system is like comparing the horse and cart to the latest Tesla ( Bitcoin, cryptocurrencies ,blockchain ,DEFI). Come down the rabbit hole, its scary at first but so illuminating .
  • TP
    Timothy P.
    22 July 2020 @ 16:20
    As a fellow 2011-er myself, I have to say this Simon chap knows what he's talking about regarding crypto, which is refreshing. Bitcoin will eventually be held by sovereign nations (technically it is, by Belgium and the USA prior to some auctions) but this is the end-game. Exchanges, DeFi, all this noise is just phases before this occurs.
    • MD
      Matt D.
      23 July 2020 @ 05:28
      Curious about this if you have more to say? Thanks. Why Belgium (meaning the EU or ?) and USA. How do you see the end?
    • TP
      Timothy P.
      23 July 2020 @ 12:44
      @Matt D -- I do have a lot more to say, but unfortunately on RV the group hivemind consensus is that I'm not presenting my knowledge in the proper touchy-feely manner to be accepted by them. So I will comment sometimes on what I feel like, the gang mentality has guaranteed that anything I share will be only useful to those that have a certain level of experience. The people I trust will get better information. RV crowd, not so much. They aren't worth it after that treatment.
    • MD
      Matt D.
      23 July 2020 @ 23:01
      Ok - Cheers mate. I enjoy reading your comments.
    • LS
      Lemony S.
      25 July 2020 @ 16:33
      Whet my whistle, Timmy I'm all ears (eyes). Please and thank you. I think what you are saying has a real good shot at happening.
  • DS
    David S.
    22 July 2020 @ 22:44
    Excellent interview. I enjoyed listening to Mr. Dixon very much. At 74 I will stick with gold and cash until a wheel falls off. For all of you who invested in Bitcoin I hope all goes well. I bought some and it doubled before the state put too many conditions on Coinbase to operate. The more Bitcoin is worth the greater the incentive for governments to use the ledger for their own purposes. In one article in CNBC they said the new IBM supercomputer might be able to break the Bitcoin encryption. What if North Korea buys a new IBM supercomputer? Even governments will have hard time keeping their own digital currencies safe. It is just a little too risky for an old man. DLS
    • TC
      Tor C.
      22 July 2020 @ 22:59
      I would count on IBM going bankrupt rather than producing anything that significant:)
    • DS
      David S.
      23 July 2020 @ 00:29
      Tor C. - You are probably right. DLS
    • LS
      Lemony S.
      25 July 2020 @ 16:29
      It is true David, at your age it might take til you are about to kick the bucket anyway and you probably already (at that age ... living in the US era that you did, the most prosperous of all time) don't really need the money in any real way. Gold will do really well and is much the better choice at this point for you. If you made 100x on BTC even at your age, it doesn't matter, no one does anything of import at age 80+ anyway.
  • SP
    Sat P.
    23 July 2020 @ 09:55
    Great discussion, especially Simon's view on central banks letting commercial banks go bust, then replacing customers' deposits with CBDCs. I'm going to check out his YouTube channel.
    • LS
      Lemony S.
      25 July 2020 @ 16:23
      Yes, this is the next stage of the new marxist world order. It is Lenin's view of the single, central bank.
  • AA
    Amilcar A.
    23 July 2020 @ 19:22
    "Crypto" is mostly scams. But Bitcoin (BTC) remains the safe bet that has proven solid for 11.6 years now. Can't go wrong with BTC. Pretty much anything else, avoid.
    • LS
      Lemony S.
      25 July 2020 @ 16:22
      I agree, Simon always stresses that the "competing crypto" theory ultimately fails - and he is correct. If there is a big crypto, it will be BTC. Period.
  • AI
    Andras I.
    22 July 2020 @ 09:36
    Excellent! Time weighted I got much more out of this single interview than the Crypto Gathering (which was fantastic, just a bit too much). - Talking about Defi/altcoins and portfolio construction - I cannot get my head around this (and I'm not that risk averse): Let's say we have a $500k portfolio with 20% crypto allocation - $50K in BTC and $50K in alts We try to diversify (well..) the portfolio of alts: - 20 different ones - large cap? momentum (is there such thing?) worst historical performance? - equally weighted (because there is no way to know) - $2.5K each with the idea that some will moon and the rekt ones will be written off as loss 1, Let's say this overall 500k portfolio is required to return 15% average with controlled volatility. How much can alts be expected to contribute to this? 1-2% (annualized)? 2 goes 10x and the rest drops 80% -> 2% extra performance Is this realistic? Is that even worth the lost sleep (and opportunity cost) for the average investor? Obviously with lower crypto allocation it's even worse. (seems like around 5-6% is the current consensus for larger traditional portfolios based on Galaxy and others) 2: Correlations with BTC: - Is there a real diversification benefit for the total portfolio when alts strongly correlate to BTC (that seems to correlate at least short term with many things)? 3: Alt correlations: Seems like a lot of the alts have strong correlation with each-other and also BTC (https://cryptowat.ch/correlations) How does one attempt to build and uncorrelated bag of alts given they have almost no history? What's the best approach? Is anyone doing this? I don't mean gambling some helicopter money in alts.
    • MK
      Michael K.
      22 July 2020 @ 11:49
      Sir, kindly and respectfully. The best approach is to buy bitcoin and HODL it on a hardware wallet. I use a ledger but other bitcoiners prefer other ones. You used a lot of word salad up there combining black magic and portfolio management forecasting. I was recently on a call with a CIO who said, “there’s isn’t a backrest I’ve ever met that I didn’t like” so if you’re trying to tune for past performance, you know where that goes. Although if you realize that required 15% return with a hard wired vol level, you may take my money. There’s an easier way. When someone says the word “crypto” just move on. There’s bitcoin and there’s everything else and there’s a reason the smartest people in the space reach this conclusion. Those who don’t are financially incentivized to make sure you don’t either. Raoul is a generous talented hard working dynamic person, for which I am grateful, but he is a marketer as well. IMO, RV is killer for everything but their efforts to “widen the conversation” is good for RV staff to get more contacts in the venture capital space, but it’s bad for sound money. 20% in bitcoin sounds like a lot, 10% in alts sounds like a lot a lot. Start here - Do you own a single bitcoin yet? And if so, have you used a hardware wallet? And facilitated small amounts with a digital wallet? And exchanged with people in real life not just on coinbase? Have you read the various papers about the latest thinking around bitcoin? Thinking ammous, Breedlove, Pritzker, so many others. These are the bitcoin achievements to unlock. Like the moment someone decides to own physical gold on top of their GLD, bitcoin is something else, and alts are something else all over. FWIW the services I used are swanbitcoin.com to buy weekly and dollar cost average so I don’t have to look at charts and trade, Ledger Bluetooth wallet, and Green wallet for small personal transactions.
    • AI
      Andras I.
      22 July 2020 @ 22:34
      Sir, kindly and respectfully. First of all I did not imply I consider this portfolio as an optimal choice or something I would consider. It's a somewhat contrived example to set up a context. If you practice comprehensive reading you will understand that the entire post was about altcoins in a portfolio. So I had to make the crypto allocation large enough to matter. Otherwise why bother to hodl <0.5% alt coins? Sounds like you're smart enough to be able to judge how bad those numbers are made up - yet fail to contribute anything meaningful to the process of optimizing them other than throwing some dogmatic views around. Second: what does storing Bitcoin has anything to do with returns? What does a theoretical question have anything to do if I read some influencers in the space? Third: Financial incentives of actors not just in the crypto space but in finance in general are well known and kept in mind at all times. Still nothing to do with the question. Anyway, if you just had to unload your ramblings somewhere, you're welcome. But next time please don't click the reply button!
    • MK
      Michael K.
      22 July 2020 @ 23:52
      Thank you for addressing in a civilized manner. I agree that I kind of hijacked your thread and turn it into a dogmatic comment. It obviously so happens that I believe in those comments and felt that they should be said to the audience, but whatever. Two approaches towards waiting mechanisms on the back test I would suggest mean variance optimization or vol targeting.
    • AI
      Andras I.
      23 July 2020 @ 00:49
      Michael, apologies for the slightly irritated tone! I actually mostly agree with your original comments in a general sense. You need to try to use BTC in a proper way, get involved and study to understand more. I got your opinion about alts: forget about them. However, as BTC becomes more adopted (hopefully also in practice) and as RV gets crowded by crypto people, I'm sure the next wave will be coming up . I mean even Raoul is into ETH now...next thing you know he'll be HODLing doggiecoin :)
    • RK
      Ron K.
      25 July 2020 @ 01:23
      Agree with the comment above to read Breedlove (on Medium). Exceptional thinker and writer.
  • JS
    James S.
    22 July 2020 @ 23:54
    How can bitcoin be global money if it can only process 7 transactions per second and costs .40 cents in transfer fees. How can 3rd world countries use this. Simon gave no good explanation why Tether can't provide an audit. Its a flat out fraud, allowing these guys to print USD's out of thin air and pump into crypto markets. Hence why the New York Attorney General is after them in court right now.
    • TP
      Timothy P.
      23 July 2020 @ 12:49
      Found the no-coiner. It gets tiring when all these naysayers ignore the 11+ years of BTC history and solutions and just utter these simplistic complaints without doing any research. Bitcoin is global money, and there's plenty of proof if you look for it. As for Tether, it will implode after they succumb to the fractional-reserve trap. The Bitfinex guys are behind it, which after their "hack" always gives me pause. They're probably using it to front-run customer orders, for all know, lol.
    • AA
      Amilcar A.
      23 July 2020 @ 19:25
      Slow transacations, Tether, always the same food. People are too lazy to DYOR. BTC will replace the BIS above anything else. It's for Central Bank settlement. No one needs fast payments with bitcoin. Current networks are fast and fine. And when we need them, Lightning and other 2nd layer solutions work OK and are evolving every single year.
    • JS
      James S.
      24 July 2020 @ 02:01
      The Bitcoin white paper heading is literally Peer-to-Peer Electronic Cash System. So Bitcoin is only money for the first world and currently it can't be used as cash by a large portion of the population as too many transactions would clog the network. And this is going to some day be fixed by using Lightening network which is moving transactions off the block chain to a system owned by a company called Blockstream where transaction history can be lost. Here is some research for you - Satoshi Nakamoto April 2009 "The existing Visa credit card network processes about 15 million Internet purchases per day worldwide. Bitcoin can already scale much larger than that with existing hardware for a fraction of the cost. It never really hits a scale ceiling. If you’re interested, I can go over the ways it would cope with extreme size." I believe in Bitcoin but the changes and limitations to BTC have just ruined the huge benefit and utility low fee micro payments could have. Satoshi or the whitepaper never mentions 2nd layer solutions and said it could scale at a fraction of the cost to VISA. Blockstream have ruined Bitcoin to profit from solving the problem which they caused.
    • PG
      Petter G.
      24 July 2020 @ 12:43
      @James: Utter nonsense. Please explain how the base layer would process tens or hundreds of thousands transactions per second without centralizing the system to massive data centers and thereby making it impossible for normal people to run their own nodes. Propagating gigabyte sized blocks to all participants around the world every 10 minutes is ridiculous. Satoshi laid out the blueprints, but as anyone who's ever build software knows: things often change a long the way. The whitepaper is not a holy script. It's just an idea. (and Blockstream doesn't own the Lightning Network.. ffs)
  • dk
    dobromir k.
    24 July 2020 @ 12:38
    Did they comment about how Bitcoin could be created through Bitcoin credit as well?
  • AP
    Alejandro P.
    23 July 2020 @ 03:32
    So basically this guy bought a shit ton of BTC early on and is now a whale. A whale of an absolutely worthless ticker symbol that he is simply trying to promote. I lost him when he praised Max Keiser, wtf is wrong with you lol. For those new to the space please go down the rabbit hole and start your search with Gregory Maxwell and Craig Wright. Leave your biases at the start. IMO, BTC is a complete scam and absolute train wreck. All the so called crypto experts are simply promoting the bullshit because the exchanges are starving for FOMO liquidity that’s going to bail these guys out. They will then redirect those funds to the actual projects that are building the things that will change our lives for the better. And not the ones building the “lighting network” and the world computer that shards 2.0.
    • MD
      Matt D.
      23 July 2020 @ 05:36
      Interesting.
    • PJ
      Peter J.
      23 July 2020 @ 06:46
      So absolutely sure you have all the answers! You are clearly a person of such high intelligence, why bother wasting your time listening to an others opinion?
    • TP
      Timothy P.
      23 July 2020 @ 12:40
      Found the lone BSV/BCash user. Say hello to Calvin Ayre, that is, when he isn't busy getting minors to dance at his pool parties. (No, I'm not making this up - he's proud of it, google for pics.)
    • AP
      Alejandro P.
      23 July 2020 @ 13:17
      Peter, I’m a medical professional in my early thirties. If I would to claim that I have all the answers in the world of finance and crypto that would make me fool. I’ve taken a very deep dive into the space and heard opinions from countless sources at this point, from all vantage points. However, brother my first and second cranial nerves work just fine. If it smells like shit, looks like shit, then well...you know. Look into blockstream and tell me if that makes sense to you.
    • AS
      Atul S.
      23 July 2020 @ 15:47
      butthurt.
    • AA
      Amilcar A.
      23 July 2020 @ 19:23
      That's total garbage. Only BTC has value. Look at hashrate charts and players. So many scams out there. BCash, BCashSV, Ripple, etc, etc, etc. Pre-mined centralized scams. BTC has lasted this long and is #1 for a reason. And it only got stronger.
    • MF
      Mark F.
      24 July 2020 @ 04:06
      Max and Stacy are smart investors - you should read "The Bitcoin Standard" to grasp the reality of hard money and stock to flow - to see how Bitcoin is Digital Gold 2.0 . Craig Wright is a proven fraud .... just because he is a liar doesn't make Bitcoin a scam .
  • MP
    Matthew P.
    24 July 2020 @ 02:17
    Got alot out of this one! SD def has a bold vision in crypro. Some see clearly into the future...
  • MP
    Matthew P.
    23 July 2020 @ 10:18
    Brilliant!
  • JK
    James K.
    23 July 2020 @ 10:12
    How many fund managers are avoiding buying bitcoin in their funds because they’re not done building their personal holding before the price goes up?
  • PM
    Parth M.
    22 July 2020 @ 07:16
    As Simon been one of the initial investors in bitcoin. Would like to ask him one thing. Or may be if RV can help. What will happen if all the bitcoin been mined? How will miners survive then with such a high hash rate only on transaction fees? And if miners doesn’t survive how the network will? Doesn’t it cap the up side on bitcoin till last halving? Or is this a relevant question at all?
    • Jv
      Jasper v.
      22 July 2020 @ 09:15
      Mate google a bit, i the time you typed this question you could have find the anser. Dont wait on other people to tell you what the truth is, go look it up yourself. https://www.youtube.com/watch?v=LNSlIiKyZJM
    • TN
      Tim N.
      23 July 2020 @ 07:51
      Good question and no one has really answered this conundrum. By that stage if BTC is $10 million, huge transaction fees may keep it going but then there will be limited on chain transactions and second layer (eg lightening network) may be where all the action is. Otherwise hashrate will fall to such an extent it would be possible for a bad actor to control more than 50% of hashrate and steal all your bitcoins
  • CB
    Clifford B.
    23 July 2020 @ 07:48
    Interesting interview guys. While I am no crypto lover , there were some interesting concepts. I did enjoy the idea of deposit replacement with digital sovereign currency while letting the banks/entities fail. It went off the wagon a bit when we got to Max Keiser and the rather curious response to the Bitfinex question concerning USDT/Tether. USDT is supposed to be 100% backed by US DOLLARS so it's a yes or no query. If it's not then Bitfinex via USDT/Tether is no better than the Fed with money printing.
  • ra
    rehan a.
    23 July 2020 @ 07:22
    Brilliant - binge further watching Raoul getting interviewed by Simon (a week back on YouTube)
  • MD
    Matt D.
    23 July 2020 @ 05:34
    Great interview Raoul. Thank Simon - great guest. Seems to know firsthand a lot of the tech and history about the space. Appreciate his insights. Some interesting thought-provoking comments. The concerning monetisation of people by governments is something I appreciate Raoul continually discussing - seriously dangerous. I will try to understand more his point on securitisation v tokenisation - probably something important for the future. BTW - Something's happened to my comment section - all off the page, can't even see the thumbs. One of the better "crypto" discussions so far in my opinion. Excellent RV content.
    • MD
      Matt D.
      23 July 2020 @ 05:35
      Odd - my comment "BTW..." fixed itself once I posted. So disregard. Cheers.
  • HJ
    Hendrik J.
    23 July 2020 @ 00:36
    I wish he mentioned that Japan hits you with a 55% tax rate
  • PP
    Patrick P.
    23 July 2020 @ 00:03
    So let me see if I understand this ... Central Banks are going to "compete" with Bitcoin and the peeps will decide who wins .... WHEN PIGS FLY !
  • ar
    andrew r.
    22 July 2020 @ 22:21
    Terrific guest, and great interview all around!
  • NA
    N A.
    22 July 2020 @ 12:05
    Great interview, my only concern with bitcoin, once central banks issue a digital currency, and the government can see they have total control, there will be no opt-out of their system, sorry the government will ban any alternative system. Imho government is inherently evil. Only mass uprising crash and burn scenario, history shows the way, any thing else is wishful thinking.
    • DL
      Dan L.
      22 July 2020 @ 17:18
      Per Simon, banks already issue a digital currency that is fungible with government fiat. IMHO the question is whether governments can convince citizens that their (newer) version is equivalent to a hard (capped) public crypto like Bitcoin. I think you are right that they will try. They will have to redenominate if/when inflation gets out of control, and forking fiat as crypto would appear to be a good strategy. Outright banning of Bitcoin and other crypto will be difficult, though. For what it's worth, Barry Silbert (CEO Grayscale) recently said he believes this danger has now passed.
    • TN
      Tim N.
      22 July 2020 @ 20:35
      If there was now risk with Bitcoin there would be no rewards - ie it would already be $1,000,000. Just don't allocate too much of your portfolio to BTC.
  • JA
    Jonathan A.
    22 July 2020 @ 19:06
    Simon is a real OG in Bitcoin investing. Keeps a very low profile. Great choice by RV.
  • DM
    David M.
    22 July 2020 @ 15:40
    Hi guys, looking for some help, maybe one of the RV guys can help me; I'm new to the crypto world, and had previously signed up for The Crypto Gathering which I was SO excited to watch and learn from, however unfortunately from my office internet traffic is controlled and they only allow certain sites and I wasn't able to watch. Are those crypto gathering recordings kept anywhere or did I permanently miss out? Thanks in advance everybody.
    • RD
      Rick D.
      22 July 2020 @ 16:24
      Yeah, they sent out an email to everyone who had a ticket with a link and a password. The recordings aren't on Real Vision, so I'd look for the email in your inbox. (sent to the email address you used when you got your ticket) Can't post it here, pretty sure even non-members can view comments. Best of luck!
    • EF
      Eric F.
      22 July 2020 @ 18:26
      They’re all available via Vimeo in a password protected collection. I’m not sure what RV tiers had access. Maybe contact Milton for clarity / access?
  • JL
    Jack L.
    22 July 2020 @ 17:52
    Great interview... key takeaway, no matter how much you think the price is going up, risk management is more important
  • PU
    Peter U.
    22 July 2020 @ 17:08
    Excellent discussion. Thank you.
  • AG
    Adam G.
    22 July 2020 @ 06:55
    I have always thought the USD was a matter of national security and thus why would the existing world order allow anything to challenge that ? Very curious...
    • PU
      Peter U.
      22 July 2020 @ 10:11
      Furthermore, I have asked the following question so many times at digital currency conferences / presentations and nobody ever adequately answers it to permit me to "accept" bitcoin as a durable concept permitting the store of value protecting me from planned annual debasement of 2% or more. . . . . Why would any government (US or any other sovereign government) give up control of their money supply? Having control over their money supply allows them to control government spending and thereby influence the people under their sovereign control, and in the US' case, influence over other governments. The current fiat currency paradigm has nearly reached its end of use cycle as the debt super cycle experiences its final parabolic move. Governments will get together (via BIS + G20) and declare sovereign digital currencies legal tender and "independent" or non government controlled digital currencies unlawful forms of legal tender. Any intelligent response to the above is greatly appreciated. Thank you.
    • MK
      Michael K.
      22 July 2020 @ 11:19
      There is a decent amount of writing on this topic. Because bitcoin is unstoppable because the government allowed it to get this far by pretending that bitcoin isn’t a big deal or a threat. By the time it is, it will be too late. I’m not being elegant or eloquent here but it is enough for me, I don’t hold 20% in bitcoin. Low single digits.
    • MS
      Mostafa S.
      22 July 2020 @ 12:44
      It is a big assumption that all governments will get together to declare such a thing. Even if this happens, it is unlikely that developing currently will have a seat in the table as they don't have any negotiating power at the moment. There is where I think bitcoin comes into play by giving those countries a fighting chance.
    • BS
      Boris S.
      22 July 2020 @ 13:53
      I think you shouldn't jump straight to new world order... What about world order that is going slowly off dollar standard, in the same time as the alternative finance system is getting bigger with BTC as digital gold and ETF and others as smartcontract based DeFi networks. Having BCT at 100k or 200k wouldnt mean giving up your money supply as country..
    • BS
      Boris S.
      22 July 2020 @ 13:54
      ETH, BTC*
    • TP
      Timothy P.
      22 July 2020 @ 16:22
      Lets just cut to the chase, shall we? Sovereign scrip only has backing because it has an army. That army relies on their scrip to have value. When their scrip devalues to zero, that army isn't getting paid. The obvious transition is to the new currency that does store value. This defangs the sovereign monopoly, and guarantees that the decentralized alternative succeeds.
  • BT
    Ben T.
    22 July 2020 @ 13:45
    Is there a good way to gain long exposure to hairdressers in Clacton-on-Sea? :o)
    • MH
      Matthew H.
      22 July 2020 @ 16:11
      Hahah. More like Crypto o Sea
  • VD
    Vishal D.
    22 July 2020 @ 11:45
    best interview of 2020 hands down
  • SW
    Stephen W.
    22 July 2020 @ 09:30
    If after watching this you don't have 1% in BTC you really have to ask yourself why
  • LC
    Luke C.
    22 July 2020 @ 08:47
    Wow - this is a really interesting interview.