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Cryptos are much further along at this point than just bitcoin and eth. Bitcoin will probably be used like gold and eth will use it's blockchain for services that build on it's tech (like another Microsoft). There will be different currencies for different purposes, like Vchain for product verification. Also, smart contracts can automate the services done by credit cards (like rewards programs) much cheaper. They are even starting to do derivatives now. I dare say you really didn't do enough research for this video. Go back and take a look and I think you'll be surprised at what you see.
@@lamalien2276 Nobody is going to use shitty ponzi coins for anything, because they are fundamentally flawed - you either control the currency, and thus the price, by having the most coins, or you do it by having the most processing power.
I was under the impression (and I was young back then when bitcoin was created) that bitcoin was created to be a modern store of wealth and nothing more, really to hedge against inflation and market manipulation and crashes (like 08) so basically acting kinda like gold but with less market manipulation, but I think even bitcoin has mutated and become something even natoshi sakamoto and the development team couldn’t predict
Awesome video! I think there's a strong argument to be made that gift cards fit all the requirements of a private currency. I've actually ran into some folks who are selling Turkish gift to other countries cards at a markup since the price of some services can't keep up with the plummeting TL.
A wise man talk because he has something to say but a fool because he has to say something, so why all this talk anyone can google it no need for this BS
Patrick, I just wanted to say that in a world of social and media noise your videos are delivered in such a calm, considered manner cut through the craziness with clarity and intelligence. You’re a rare breed especially on the internet these days so, I just wanted to say thank you and for educating us viewers ☺️.
@@muokinzangi3067 -- could have been written better, though I think I understand what is trying to be conveyed! Yes, commas* are key! * - Void where prohibited. Your private money will vary.
It's incredible how you mentioned M-PESA which forms critical part of currency exchange via mobile devices in Kenya. It has integrated very well with the banking sector in the country.
I can imagine this would be needed seriously in remote towns and small village. Even we in the Rockies don't have ALL the Canadian big five banks. My bank is two hours away. Not even a kiosk.
I really think the so-called developing countries are going to lead this, I mean when it comes to bringing this to being a means of paying for goods - trust, being willing to adopt - that that need will drive the tech forward. I hope so, then the rest of us can follow!
One of my favorite bits of trivia is that wampum, originally a native invention, had some inherent value because its pretty and the process to produce it was very laborious so it wasn't an infinite supply. This changed when settlers built steel tools and a mechanized process for quickly making loads of it, causing wampum inflation at the expense of the natives.
I was unaware the settlers automated/accelerated the process and caused wampum inflation with native Americans. But a logical route to go. In Oceania, the stone money used on some islands - a "coin" being a rounded rock weighing several hundred pounds and more - saw a similar phenomenon when an Irishman used a European transport ship to bring in massive amounts of rocks from other islands in the 19th century. And what the settlers did reminds me of childhood times when we collected bottle caps from a local bar and hammerded them into coins... 't was a good time.
@@michaelbizon444 when you have a gold coin in your hand you never know which part of the globe the atoms came from and what people did to others when acquiring them. My now late grandmother sometimes told the story that as a young woman just as the second war had ended in Germany and its aftermath she walked home for some 200 kilometers from where she had been conscripted. She said that on her walk she met a woman, the wife of an SS officer, who had a small bag with her that contained gold teeth taken from the people, (I assume mainly jews), killed in then concentration camps. I'm so glad that so far I haven't had to live through such a time...
Sorry to say, but that is not true. This did happen, however, in West Africa during European colonization with Akori beads. A glass bead used as currency dating as far back as 300 CE. Europeans were able to mass produce it in factories in Europe and shipped boatloads of it and caused hyper inflation. Wampum was another story. Firstly, the indigenous people did not use it as "money" but as a ceremonial trade good and status symbol. When the English and Dutch arrived they saw its potential for use as currency. However it didn't fully satisfy the definition of money. For instance it was not a real store of value. It also was useless in international trade, only having any sort of value in the north east of the Americas. After the Pequot War in 1638, the tribes along the Long Island Sound, the makers of Wampum, who had been damaged by the war, had difficulty keeping up with Wampum production. Eventually Boston started minting their own coins, (in violation of their charter) and began replacing Wampum as money. It's a little more complicated than that, as things usually are, but that's the gist of it.
The same thing happened in reverse for the gold standard during the Industrial Revolution. It was a fluke of history that the technology being developed during that period (steam powered mining pumps and equipment) also increased the money supply.
My favorite semi-related trivia is that aluminum used to be more valuable than gold. Napoleon's most honored guests ate with aluminum cutlery instead of silver. The electrolytic extraction process eventually flooded the market and turned it into what we know today. In fact, it was only ~100 years ago that aluminum became cheaper than tin, which is why a lot of places still use the misnomers "tin can" and "tinfoil."
Your mention of the protection provided by the credit card system for is so true. Myself and all my relatives have had to use that protection due to criminals attempting to charge to our credit cards. Great commentary on private currencies.
Did it occurs to you that protection is required/provided because credit card is flawed in a way that it is easily susceptible to such fraud in the first place ?
@@Funktastico Not really, protection against social engineering scams is a value add. And this has nothing to do with the underlying transaction settlement technology and how secure it is from a purely technical standpoint. The fact that transactions are reversible is a feature.
@@Funktastico you realize every system has flaws right? Go look up how people are being hacked and swindled with the flaws in the block chain. There is no way to reverse a charge on the chain either, so all victims are SOL.
Sell bitcoin? Why would anyone do that ? IMO always buy when you can afford it. Invest for future benefits, whether they be having the new money or selling for profit. Then, invest as if you might be wrong, The name of the game is to not lose wealth whatever form it may take.
@@Otis-the-III Its lucrative nature has never been doubted, but a higher %tage of investors lose rather than make fortunes off it. What's your system, sir? How do you go about it for profitable outcomes ? I am thinking about buying a small amount, trying to get skin in the game.
Investing in stocks and crypto are no doubt one of the simplest forms of earning recurring passive incomes. I made my first million $ doing so! But their inherent complexity kinda makes it tough. I think it's more about knowing so much about investing in stocks and btc that you're able to note opportunities on any given day.
Prospective investor here and the last six months was undeniably miserable for, absolutely horrendous. I'd like to know how you guys throwing darts over the wall actually do it?
Out-f’ing-standing! I was profitable both January and February, & with Btc currently on the rise, 2023 is really shaping up to be a good one. So getting rich in fiat is ok in my books using Btc. It's basically FOREX!
Crypto is not as private as most people think. BTC is literally wide open. If you can connect a waller with a person, even a child could look at the history. Monero on the other hand is literally an enigma. And that's why it's kept down low. Nobody can tell what's happening on the chain
Private printed money’s history is still easy to see in Scotland and Northern Ireland, though all those notes are backed by government eventually, though not directly.
it got up to 40 dollars per transaction last spring. If more people actually used it, then it would be even higher because miners can pick and choose what transactions to do first
Crypto currencies can be imbued with different properties. They can be frozen, locked, burned etc. I almost imagine the usecase for crypto being more like Nectar points or shop specific tokens a bit like the lumber mills.
Amazing "edutainment" value. Inching closer to patreon. Love, love, love that distinguished suit. But love, love, love, love, the content of this particular production. I really admire you professor Boyle keep these high-quality videos coming please.
Actually, currencies have been competing as long as currencies have existed. Athens made their tetradrachms the trading standard over the whole Mediterranian. The denarius took over in the 2nd century BC. Then came the sterling penny, etc. History is full of examples of attemtps and successes in monopolizing the money standard. Alternative currencies have popped up to either take over, or at least keep the leading currency honest. It is as it should be.
Thank you for making this stuff. You always say its boring but its fascinating to me to see how history repeats itself in new forms. I wish we learned more of this in finance school. Maybe there was a class called history of finance but I didn't take it.
Another interresting story is how credit card emerged from Horse Coaches Companies like "Federal Express". Transfering Private Credit papers form one Branch Office to another thus avoiding gold phisical transportation Risk. Peolple could deposit their money/gold in one branch and negotiate this deposit reciepe in another city.
America as always lags behind, I don't have (and need) a credit card for over 10 years. France is even worse, sometimes they will require checks, without giving you another way to pay, that is mighty annoying.
Great video, interesting topic. Sheds some new perspective on how to view cryptos when having a bit of history on private currency. Very thoughtful topic if you ask me.
@@mvpfocus there is no solution. The video clearly shows that we've tried for hundreds of years. It's a fundamental aspect, not a problem, of any system we can come up with.
The Crypto market is still one of the most potential places to invest your money, if you can manage the risk, then you can take advantage of the market to secure your financial position and earn money.
i don’t just buy/trade anything for the sake of it, I seek the guidance of 'Jennifer Bright Emfield' who has made me understand that strategy is everything, her strategy has brought 15x returns so far this year. I copy her trades in real time which i can confidently say i am impressed.>
let me use one currency to buy another currency, so I can make more of the first currency. Makes so much sense. But what makes more sense is that the current price of bitcoin is based on the cost in energy that is required to make a bitcoin. But once all the BTC are mined, they will have little value because they have little utility.
Intresting - money is trust! I would be interested if you looked at Asia - China did a lot of this millena ago, India etc. The view of money is very US centric and that is pretty much the consequences of the Brenton Woods agreement.
I wouldn't call it private money, cryptocurrencies are mutable assets. What gives bitcoin its strength is consensus (in a non-technical sense).The dollar is getting stronger right now, even though so much has been printed, I don't have to be in a financial master class to sense something is fishy. I want to have a say in what the fiscal policy should be, it should not be inflatable.
BTC has been duplicated several times, so it seems pretty susceptible to inflation. Ever heard of BTC Cash, just the instantaneous duplication of BTC. The only thing giving BTC value right now is that it costs 38k to mine just a single coin. Of course a miner would only sell it for that much.
@@ryanpatrick4920 It has been decided by consensus that BTC Cash is not real BTC, if such fork happens you "account" has the same amount of asset on both chains. Easy solution, sell the wrong chain. Buy the right one. Even you can duplicate BTC with the right equipment, but questionable if you can pay me out, cause i will buy real bitcoin from this money ;). That's the beauty of consensus.
It's interesting Colonial America went through a similar situation with their currencies to Colonial New South Wales (Australia). The history of the currency of Australia before any standard issue was complex, I'm sometimes amazed that people got used to it!
For better or for worse, the world needs a consensus digital currency that is not subject to manipulation by any government or private bank. We need to come up with something that everyone can use to easily transact, which could also be used even when the power is down and the internet is off. Then, when private banks or any government wants to transact, they will have to sell some actual physical assets to acquire some of that digital currency, instead of just printing money out of thin air... which only ever steals money from everyone else.
Thank you for your videos! I didn’t know there were so many Cripto currencies in existence, I admire the way you explain it, I’m just an average person and I’m learning so much from all of your videos, Excellent!!👍🏻
Business and marketing history was a course I enjoyed in college. Fun fact, an example of early marketing, one of the first laxative's was called "Wamo."
Cryptocurrencies do not solve consumer problems. They solve issuer problems, eliminating the need to get regulatory approval for every significant change. The need to have initial backing and underwriters to establish a currency - a starter fund of liquid assets and an infrastructure budget. Cryptocurrency eliminates the need to allocate funds for fraud protection and deposit insurance. Practically, everything you said about why US consumers prefer credit cards, is why cryptocurrencies exist. Because some people want to be as rich as credit card companies, but only effort they want to put in, is writing a hashing app. They want to get rich off zero investment. And they sell the dream of getting rich the same way to their followers.
Money supply increases should fund the federal government instead of taxes. The banks would only be able to loan out 90% of what they had, instead of creating 10x and loaning it out, which is also a 10% reserve requirement. Charles Coughlin supported this idea in the 1930s
First of all, an amazing approach to help demystify this “monetary” application of block chain technology. Secondly, I was wondering what would happen when the last bitcoin is mined? What incentive will there be to continue to have your servers guzzle down electricity so that numerous records of one transaction is validated? Would appreciate your thoughts..
similar to a credit card company, a % of each transaction will be siphoned off to be the reward for the miners, replacing the freshly minted bitcoins they currently get, but otherwise being distributed pretty much the same way as now. And the blockchain mining participation will contract until an value equilibrium has been achieved (which we've already been seeing). Or the whole system collapses because China gets and hoards all the bitcoin or people stop using it because it's simply too slow, and it ends up a niche novelty used primarily in 3rd world countries because they have literally nothing better.
@@ZanathKariashi Since Bitcoin is finite, what happens when all Bitcoins are lost? For instance, since Bitcoin inception, about 10% of Bitcoins are lost forever, due to people misplacing their cold storage keys, some lost them through hackers, and other simply die prematurely and took the Bitcoins with them to their graves. Since Bitcoin has lost 10% and been around like only a decade, at this current rate, that means there will be a time maybe in 90 years, all Bitcoins will be lost. Correct?
I'd say that this historical perspective was refreshing. It does go wrong in some parts like the distribution and the limited/predetermined amount of coins this changes a lot compared to the historical private currencies. Transaction costs for bitcoins are 5ct at the time of writing. It's just Ethereum which is very expensive.
Bitcoin transactions are $1.36 as of writing, NOT $0.05. As far back as ycharts let's you look at for free, 5 years, Bitcoin transactions have never been $0.05.
@@trainraider8 try to set a lower gas on your transactions or use a solution such as lightning. Stop spreading misinformation. I do agree that ETH transaction fees are too damn high.
The big advantage of cryptocurrencies are smart contracts. Currently the only real use are DEX (decentralized exchanges) where you can exchange different currencies without a middleman. Also there is "lending" which is a bit of a misnomer in my eyes because it's not at all the kind of lending that a bank does, even though it's promoted as such. You always need cryptocurrencies as collateral which you could have sold instead of taking a loan, hence it's more about leverage or short selling. With lower transaction fees (as on Cardano for example) this may add unique benefits in the future that we can't imagine yet.
Digital central bank currency, would be totalitarian by nature. You could trivially shut individuals off from the financial system, say your political opposition, and enforce a social credit scheme, whereby people could only use their money to buy gov approved purchases.
One of the most important aspect of cryptocurrencies is that they are programmable. While this might enable a never-before-seen dystopia, it might also make the economy more adaptable and enable a lot new types of businesses. Another perk is that with cryptocurrencies banks would be optional instead of being mandatory.
Sometimes you come across people who are just drunk on crypto, staggering around the internet repeating a few common crypto mantras. The “crypto-bro” jargon even allows two (or more) people to think that they are talking about it without them actually really knowing anything about it.
@@matiashamalainen4574 It was not possible to program money back then, and it is not possible today either. You are confusing blockchain technology with cryptocurrency. Please, put the video in a loop and keep watching till you understand what's actually being said. ;)
I started using crypto in 2021 when half of the money i wired to a friend of mine (wanted to send 100 dollars) vanished. Im in cyprus and he is in netherlands, when i asked my bank 'my friend is telling me he received much less than what i sent him' they said 'we didnt cut any fees, your friend should have received it' and when my firend asked his bank they had ''no clue'' either. So my reaction to it was 'f this sh*t' and now its so easy to transfer money with LTC and with some similar coins. So biggest advantage crpto has is it being a trustless tool which is awesome and also it being great to transfer money. I also hate when its stated ' crypto is helping criminals' bs. Traditional money has much more criminals in it and it is just as easy to be used for criminal activity.
Agreed. I think Patrick may have cited some old numbers. Just for perspective, I recently initiated a wire transfer which cost me $15 and took 1-3 business days, versus only a few minutes for Bitcoin (which is a relatively slow cryptocurrency). One real nice thing about cryptocurrencies is that it’s quite a bit cheaper and faster specially for large sums of money.
@@notmuchherereally the 1-3 business day thing is so archaic and I can't understand how this isn't brought up here. Or how there exist solutions for the problems he's citing
I don't think crypto is supposed to be a replacement for money, just how stocks or store credit, airline credit, etc isn't ment to replace real money. It's just a better way to have your "money", similar how money was developed as a mean to trade more efficient and easier than having nugets of gold with you.
Patrick, you didn't mention that private currencies didn't circulate widely because branch banking was illegal in this period. Obviously this caused problems for the system that did not exist in Canada or in Scotland.
I really liked the history lesson, but at the risk of sounding like a crypto person, which I’m not, describing crypto currency as simply a way to buy stuff on the internet is a gross simplification and ignores the majority of what’s going on in the blockchain ecosystem
I used to believe in crypto currency. Now I'm convinced that they fundamentally incentivize away from use as currency, and toward use in bigger fool schemes.
One aspect of currency use you overlooked in your review is that citizens of a country will be short of the currency of that country because their obligations to pay taxes can only be discharged in that country,s currency. This creates permanent demand for that currency. Advocates of cryptocurrency often claim that it is a solution for people concerned about the potential wealth losses due to “money printing” in their home jurisdiction. But a solution for citizens of weak currency countries already exists and existed before the invention of cryptocurrency: use strong currencies instead. This already happens in places like Zimbabwe where the USD is in widespread use. For most countries most of the time this is only a temporary solution as the supply and value of foreign currency is unlikely to reflect domestic conditions over the long run and anyway sooner or later some of that currency will need to be converted to domestic currency to pay taxes. Compared to the USD which can be used to settle international trade debts (the Chinese pay for Australian minerals with USD) and US taxes, Bitcoin are only of use and interest to a small number of enthusiasts who trade amongst themselves. It pretty small backing compared to just about any government issued currency.
No, he simply didn't do enough research before making his conclusions on such a complex subject. That's his bad. The perspective he gives is based on extremely dated information. The truth is crypto is breaking into derivatives, product verification, and smart contracts (automated contract settlement). Also, many cryptos are MUCH faster than credit card networks. Patrick blew it this time.
@@TheRustyLM Fiat isn't really backed by anything. Crypto is backed by that guy on Craigslist kills people. What a joke and a waste of time! I wish Patrick would do a video on all the characters involved in crypto they are all relatives of Bernie Madoff.
I can see why you are a visiting professor. You have a great ability to explain concepts in a way that can be easily understood by someone without a great deal of insight in the topic without sacrificing the complexity or depth of the subject.
yourcheapdate: Agreed. What it does for me is increase my skepticism toward BTC, etc, and make me think that the old time wisdom of Buffett, Munger, et al that crypto becomes worthless over time, is likely correct. Not enough to want to bet on that, however. I earned my money. Throwing it away isn't in my play book.
It's a travesty that this video doesn't mention the '1 Big Mac' coin. And it's a missed opportunity that McDonalds doesn't issue coins denominated in units of Tendies.
Tammuz Kay: So WHY is this a travesty (in your opinion)? So I see with 1 minute of searching, that this was only redeemable through 2018 at some McDonald's stores. So now, it's WORTHLESS, except for those who want to collect them, and trade them on Ebay (apparently, included in my 1 minute of a quick search).
Fascinating. I wasn't really aware of much of the history of private currencies, so I learned a lot today. Interesting side-note; in Scotland, where I'm from originally, bank notes are issued by authorised retail banks rather than the government, so you have several different sets of notes in circulation. Technically, these notes aren't actually legal tender, and I guess they are really a form of private currency. However the banks are required by law to hold reserves equivalent to the value of notes they issue, to guarantee their value. So I guess Scottish currency is basically paper stablecoins.
I remember the two brothers that grew a huge business in Scotland in the railroad era building Pullman style cars. The bank "notes?" or "letters of credit"? were routinely discounted in process. the same thing occurred with these financial papers authorizing purchase overseas, especially of cotton from Egypt. It was just part of the financial process in those days to account for long travel and exchange of raw materials, to manufacturing in a country far, far away.
Interesting fact there are couple of reasons why Scotland has three banks but one of them has to do the fact that the first bank the Bank of Scotland was believed to have Jacobite ties. So when a new company wanted to move into banking parliament agreed to allow them as a form of competition. Hence The Royal Bank of Scotland was born
"HOUSE OF CARDS" - both the traditional Finance and Bitcoin too, sure it has value because of scarcity but its price always sits on the foundation of US dollars . When the chips are down, Bitcoin and crypto will shit the bed faster than any currency ever.
As an Ithacan, I can tell you that the Ithaca Hour's history is a wonderful and interesting story. Lovely to hear my city mentioned in your video. There are several wonderful lessons to be learned from the Ithaca Hour and it's history.
@@NickVetter If you persist in this high risk then I just have a few tips for you to keep in mind. Do not forget your password. If you have a large holding of crypto's, then make sure you leave the access of it in your Last Will and Testament, so that this stored wealth is not lost forever, and can be converted back into real wealth (dollars) by whoever inherits your estate. You have no idea how many BTC are lost forever because so many knowitalls died without disclosing to someone the access to their holdings. BTC claims it has a circulation of 19 million. It is more like 8 to 10 million that are still in circulating existence.
Some weeks ago I watched a video that explained that "airline miles/rewards" (from Delta/AA/Continental) effectively work as digital private currencies... (much like the railroad operators did before)... Learned a great deal of history with this video. Thanks Patrick.
your early examples are all backed by a single entity or partnership, with the value/risk tied to the stability/reputation of the backer. Besides the ever greater fool believing that the crypto will grow in value, what is underpinning the new private money? Isn't crypto more like tulips than private money? No intrinsic value, no party responsible for the enduring value, great investment, but only if the next fool up believes it to be so?
Same here, I guess if you mention the word e.t.h.e.r.e.u.m or L.a.y.e.r 2 it'll get auto deleted or any other meaningful conversation about what it solves
@@eyadkourdi2325 me neither, I just brought up some important points. He was trying to argue that crypto doesn't solve anything while that kinda suggests that he doesn't truly understand it
Private currencies are not illegal in the United States, but they are effectively illegal because of the laws related to capital gains taxes. Gold, for example, is a very good currency, however the bookkeeping required to use it as a day-to-day currency is extremely onerous... practically impossible. Imagine having to keep a record of each time that you receive or spend money, plus a record of an exchange rate with each transaction. I contend that private money has fallen out of use because capital gains taxes were introduced in the early 1900s, not because government money is inherently better.
Gold and silver are not a good currency regardless of tax law. It is too scarce for a large country like the US to meet the needs of its huge economy and large populous. Even if the government coined it, people would hoard it instead of using it to purchase things. It is also not easy to transport.
@@ryanpatrick4920 Too scarce? If demand goes up and it becomes more valuable, right? Do you contend that it'd become so valuable that it couldn't be denominated in small enough amounts? If so, you could use something less scarce like silver for small transactions. Also, you can buy a house (a mansion?) with a brick of gold. How much do you need to transport? (Edit: I do think electronic currency is easier to transport than gold, and thus it's probably better money. But, gold isn't bad money by any means.)
@@chrishubley7849 yes, that is exactly the concern. What the person in this video said about silver coins is true. They were not good denominations of coins because the silver that the coin was made out of was worth more than the denomination on the coin. So people stopped using it as a currency. Currencies need to circulate in order for an economy to grow. And that is more so a concern if it were gold. You would literally need to have a person weigh your gold and consult the market price before any transaction. I am not against the accumulation of gold and silver as a storage of wealth, but gold bugs make all these crazy suggestions about its being useful as a currency or as a standard reserve to back the dollar. None of it is realistic. Any true patriot would put their hope and faith in the US dollar, rather than trying to diminish its standing with these useless crypto's or scarce precious metals.
@@ryanpatrick4920 the problem of coins being worth more than their denominations comes from the government decree that, for example, a quarter is 1/4 of a dollar. If the value of the silver in the coin is worth more than the declared value the coin, the government has a big problem because the coins can be bought from the mint for the stated value melted down and sold for the market price. As for everyone weighing coins, in the past coins were often weighed, but historically coins are created in standard weights and sizes to make transactions easier.
I watched an absolutely amazing video by you but can't seem to find it again. It was the one where Mr. wonderful was trying to make himself relevant by shooting zoom videos with his pants off. I was wondering if you knew the video I was talking about & the title ? Thank you so much. BTW I Love your insight & content !!!
With general news I go to the comments expecting a total $hitshow reflecting what the world is today. Your section gives me enlightenment on top of your video. Thank you all!
I find it humorous that the top comment thread below this video (aside from the pinned comment) is a conversation taking place between a whole troop of crypto scam-bots.
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Cryptos are much further along at this point than just bitcoin and eth. Bitcoin will probably be used like gold and eth will use it's blockchain for services that build on it's tech (like another Microsoft). There will be different currencies for different purposes, like Vchain for product verification. Also, smart contracts can automate the services done by credit cards (like rewards programs) much cheaper. They are even starting to do derivatives now. I dare say you really didn't do enough research for this video. Go back and take a look and I think you'll be surprised at what you see.
@@lamalien2276 Nobody is going to use shitty ponzi coins for anything, because they are fundamentally flawed - you either control the currency, and thus the price, by having the most coins, or you do it by having the most processing power.
I was under the impression (and I was young back then when bitcoin was created) that bitcoin was created to be a modern store of wealth and nothing more, really to hedge against inflation and market manipulation and crashes (like 08) so basically acting kinda like gold but with less market manipulation, but I think even bitcoin has mutated and become something even natoshi sakamoto and the development team couldn’t predict
Awesome video! I think there's a strong argument to be made that gift cards fit all the requirements of a private currency. I've actually ran into some folks who are selling Turkish gift to other countries cards at a markup since the price of some services can't keep up with the plummeting TL.
A wise man talk because he has something to say but a fool because he has to say something, so why all this talk anyone can google it no need for this BS
Patrick, I just wanted to say that in a world of social and media noise your videos are delivered in such a calm, considered manner cut through the craziness with clarity and intelligence. You’re a rare breed especially on the internet these days so, I just wanted to say thank you and for educating us viewers ☺️.
I couldn't have said it any better.
Perfectly said
Indeed, so much smoke and mirrors, says exactly what i would say if I knew what he knows! 😊
@@muokinzangi3067 -- could have been written better, though I think I understand what is trying to be conveyed!
Yes, commas* are key!
* - Void where prohibited. Your private money will vary.
It's incredible how you mentioned M-PESA which forms critical part of currency exchange via mobile devices in Kenya. It has integrated very well with the banking sector in the country.
I can imagine this would be needed seriously in remote towns and small village. Even we in the Rockies don't have ALL the Canadian big five banks. My bank is two hours away. Not even a kiosk.
I really think the so-called developing countries are going to lead this, I mean when it comes to bringing this to being a means of paying for goods - trust, being willing to adopt - that that need will drive the tech forward. I hope so, then the rest of us can follow!
@@jfernandez76 I have horse why I need car???
Wampum to the moon!
Wammoonpumm 3x leveraged ETF stake your wampum for guaranteed 150% returns in 🌽
One of my favorite bits of trivia is that wampum, originally a native invention, had some inherent value because its pretty and the process to produce it was very laborious so it wasn't an infinite supply. This changed when settlers built steel tools and a mechanized process for quickly making loads of it, causing wampum inflation at the expense of the natives.
I was unaware the settlers automated/accelerated the process and caused wampum inflation with native Americans.
But a logical route to go.
In Oceania, the stone money used on some islands - a "coin" being a rounded rock weighing several hundred pounds and more - saw a similar phenomenon when an Irishman used a European transport ship to bring in massive amounts of rocks from other islands in the 19th century.
And what the settlers did reminds me of childhood times when we collected bottle caps from a local bar and hammerded them into coins... 't was a good time.
@@michaelbizon444 when you have a gold coin in your hand you never know which part of the globe the atoms came from and what people did to others when acquiring them.
My now late grandmother sometimes told the story that as a young woman just as the second war had ended in Germany and its aftermath she walked home for some 200 kilometers from where she had been conscripted. She said that on her walk she met a woman, the wife of an SS officer, who had a small bag with her that contained gold teeth taken from the people, (I assume mainly jews), killed in then concentration camps.
I'm so glad that so far I haven't had to live through such a time...
Sorry to say, but that is not true. This did happen, however, in West Africa during European colonization with Akori beads. A glass bead used as currency dating as far back as 300 CE. Europeans were able to mass produce it in factories in Europe and shipped boatloads of it and caused hyper inflation.
Wampum was another story. Firstly, the indigenous people did not use it as "money" but as a ceremonial trade good and status symbol. When the English and Dutch arrived they saw its potential for use as currency. However it didn't fully satisfy the definition of money. For instance it was not a real store of value. It also was useless in international trade, only having any sort of value in the north east of the Americas. After the Pequot War in 1638, the tribes along the Long Island Sound, the makers of Wampum, who had been damaged by the war, had difficulty keeping up with Wampum production. Eventually Boston started minting their own coins, (in violation of their charter) and began replacing Wampum as money. It's a little more complicated than that, as things usually are, but that's the gist of it.
The same thing happened in reverse for the gold standard during the Industrial Revolution. It was a fluke of history that the technology being developed during that period (steam powered mining pumps and equipment) also increased the money supply.
My favorite semi-related trivia is that aluminum used to be more valuable than gold. Napoleon's most honored guests ate with aluminum cutlery instead of silver. The electrolytic extraction process eventually flooded the market and turned it into what we know today. In fact, it was only ~100 years ago that aluminum became cheaper than tin, which is why a lot of places still use the misnomers "tin can" and "tinfoil."
Your mention of the protection provided by the credit card system for is so true. Myself and all my relatives have had to use that protection due to criminals attempting to charge to our credit cards. Great commentary on private currencies.
Did it occurs to you that protection is required/provided because credit card is flawed in a way that it is easily susceptible to such fraud in the first place ?
@@Funktastico Not really, protection against social engineering scams is a value add. And this has nothing to do with the underlying transaction settlement technology and how secure it is from a purely technical standpoint. The fact that transactions are reversible is a feature.
It's weird that someone can just charge someone's credit card anyway instead of it being a payment request rather than a charge.
@@Funktastico you realize every system has flaws right? Go look up how people are being hacked and swindled with the flaws in the block chain. There is no way to reverse a charge on the chain either, so all victims are SOL.
Love that my DCA into bitcoin and the stocks market cost me nothing, rather it did put me on the road to riches. Sh!t's paying higher than a paycheck.
Sell bitcoin? Why would anyone do that ? IMO always buy when you can afford it. Invest for future benefits, whether they be having the new money or selling for profit. Then, invest as if you might be wrong, The name of the game is to not lose wealth whatever form it may take.
@@Otis-the-III Its lucrative nature has never been doubted, but a higher %tage of investors lose rather than make fortunes off it. What's your system, sir?
How do you go about it for profitable outcomes ? I am thinking about buying a small amount, trying to get skin in the game.
Investing in stocks and crypto are no doubt one of the simplest forms of earning recurring passive incomes. I made my first million $ doing so! But their inherent complexity kinda makes it tough. I think it's more about knowing so much about investing in stocks and btc that you're able to note opportunities on any given day.
Prospective investor here and the last six months was undeniably miserable for, absolutely horrendous. I'd like to know how you guys throwing darts over the wall actually do it?
Out-f’ing-standing!
I was profitable both January and February, & with Btc currently on the rise, 2023 is really shaping up to be a good one. So getting rich in fiat is ok in my books using Btc. It's basically FOREX!
Crypto is not as private as most people think.
BTC is literally wide open. If you can connect a waller with a person, even a child could look at the history.
Monero on the other hand is literally an enigma. And that's why it's kept down low. Nobody can tell what's happening on the chain
Excellent Patrick. Easily one of my top 10 channels on UA-cam
Private printed money’s history is still easy to see in Scotland and Northern Ireland, though all those notes are backed by government eventually, though not directly.
I would like to note that a bitcoin transaction costs between 0.15$ and 0.30$.
Sometimes as low as $0.02. Moved $10k for that much, on a Sunday, within an hour. Please show me a bank that can pull that off.
it got up to 40 dollars per transaction last spring. If more people actually used it, then it would be even higher because miners can pick and choose what transactions to do first
Given all the Cryptos, NFTs, the Rise of the Metaverse, On-Line Sports Betting, and Lotteries is anybody in the US paying their bills?
The pros of crypto: Pump and dump, baby!!
The cons of crypto: I was on the wrong side of the pump and Dump.
Crypto currencies can be imbued with different properties. They can be frozen, locked, burned etc. I almost imagine the usecase for crypto being more like Nectar points or shop specific tokens a bit like the lumber mills.
All this should show just how fragmented the US economy was in the 19th century along regional and local lines
Back in the day folks also used postage stamps for small purchases.
Amazing "edutainment" value. Inching closer to patreon. Love, love, love that distinguished suit. But love, love, love, love, the content of this particular production. I really admire you professor Boyle keep these high-quality videos coming please.
I like how you didn't use a click bait title for this video. I really appreciate your focus on meaningful content.
Actually, currencies have been competing as long as currencies have existed. Athens made their tetradrachms the trading standard over the whole Mediterranian. The denarius took over in the 2nd century BC. Then came the sterling penny, etc. History is full of examples of attemtps and successes in monopolizing the money standard. Alternative currencies have popped up to either take over, or at least keep the leading currency honest. It is as it should be.
Thank you for making this stuff. You always say its boring but its fascinating to me to see how history repeats itself in new forms. I wish we learned more of this in finance school. Maybe there was a class called history of finance but I didn't take it.
More than 8000 cryptocurrencies? According to coinmarketcap, there are actually more, than 16 000 right now.
Didn't know that microtransaction stores and currencies have almost 150 year history
Another interresting story is how credit card emerged from Horse Coaches Companies like "Federal Express". Transfering Private Credit papers form one Branch Office to another thus avoiding gold phisical transportation Risk. Peolple could deposit their money/gold in one branch and negotiate this deposit reciepe in another city.
Damn, that suit is fresh AF.
America as always lags behind, I don't have (and need) a credit card for over 10 years. France is even worse, sometimes they will require checks, without giving you another way to pay, that is mighty annoying.
Great video, interesting topic. Sheds some new perspective on how to view cryptos when having a bit of history on private currency. Very thoughtful topic if you ask me.
This video would go well with the one about British/ Irish pubs becoming banks...just a thought
Another form of private money are things like Amazon and other retail vouchers and gift cards.
People are right to worry about inflation, but wrong to see crypto as a solution.
What's your solution?
@@mvpfocus there is no solution. The video clearly shows that we've tried for hundreds of years. It's a fundamental aspect, not a problem, of any system we can come up with.
@@crescentprincekronos2518 I was asking the commenter, and it appears you lack ideas, so why even say anything?
Moderate inflation is best. Definitely don't want deflation, look at Japan...
great video Patrick!
The Crypto market is still one of the most potential places to invest your money, if you can manage the risk, then you can take advantage of the market to secure your financial position and earn money.
Scanned the altcoin charts and came to this conclusion, many look bullish with bullish reversal structures. 2022 is going to be nuts for Alts.
i don’t just buy/trade anything for the sake of it, I seek the guidance of 'Jennifer Bright Emfield' who has made me understand that strategy is everything, her strategy has brought 15x returns so far this year. I copy her trades in real time which i can confidently say i am impressed.>
let me use one currency to buy another currency, so I can make more of the first currency. Makes so much sense. But what makes more sense is that the current price of bitcoin is based on the cost in energy that is required to make a bitcoin. But once all the BTC are mined, they will have little value because they have little utility.
Commenting to support.
Exceptionnel comme d’habitude.
Intresting - money is trust! I would be interested if you looked at Asia - China did a lot of this millena ago, India etc. The view of money is very US centric and that is pretty much the consequences of the Brenton Woods agreement.
I wouldn't call it private money, cryptocurrencies are mutable assets. What gives bitcoin its strength is consensus (in a non-technical sense).The dollar is getting stronger right now, even though so much has been printed, I don't have to be in a financial master class to sense something is fishy. I want to have a say in what the fiscal policy should be, it should not be inflatable.
BTC has been duplicated several times, so it seems pretty susceptible to inflation. Ever heard of BTC Cash, just the instantaneous duplication of BTC. The only thing giving BTC value right now is that it costs 38k to mine just a single coin. Of course a miner would only sell it for that much.
@@ryanpatrick4920 It has been decided by consensus that BTC Cash is not real BTC, if such fork happens you "account" has the same amount of asset on both chains. Easy solution, sell the wrong chain. Buy the right one. Even you can duplicate BTC with the right equipment, but questionable if you can pay me out, cause i will buy real bitcoin from this money ;). That's the beauty of consensus.
@@ryanpatrick4920 it's dipping around that price now
There's a strong case to be made that private currency is the original form of money, since the oldest forms of money are ledger entries and IOUs.
It's interesting Colonial America went through a similar situation with their currencies to Colonial New South Wales (Australia). The history of the currency of Australia before any standard issue was complex, I'm sometimes amazed that people got used to it!
For better or for worse, the world needs a consensus digital currency that is not subject to manipulation by any government or private bank. We need to come up with something that everyone can use to easily transact, which could also be used even when the power is down and the internet is off.
Then, when private banks or any government wants to transact, they will have to sell some actual physical assets to acquire some of that digital currency, instead of just printing money out of thin air... which only ever steals money from everyone else.
Thank you for your videos!
I didn’t know there were so many Cripto currencies in existence,
I admire the way you explain it, I’m just an average person and I’m learning so much from all of your videos,
Excellent!!👍🏻
usually bitcoin transaction fee is between 1 and 5 $
This channel is so great, so instructive with so much fun
I'd love to hear your thoughts and understanding of the "Circular Economy" ideas which seem to be emerging.
Business and marketing history was a course I enjoyed in college. Fun fact, an example of early marketing, one of the first laxative's was called "Wamo."
That was an explosive campaign.
0:42 airline points would like a word
Yeah people really need to study history more. Private currency typically do worse than government backed ones.
Excellent explanation as usual. Thank very much.
Really enjoy your videos sir, very much appreciated - thank you!
I love how many auxiliary info bits these vids cover
Cryptocurrencies do not solve consumer problems. They solve issuer problems, eliminating the need to get regulatory approval for every significant change. The need to have initial backing and underwriters to establish a currency - a starter fund of liquid assets and an infrastructure budget. Cryptocurrency eliminates the need to allocate funds for fraud protection and deposit insurance. Practically, everything you said about why US consumers prefer credit cards, is why cryptocurrencies exist. Because some people want to be as rich as credit card companies, but only effort they want to put in, is writing a hashing app. They want to get rich off zero investment. And they sell the dream of getting rich the same way to their followers.
Money supply increases should fund the federal government instead of taxes. The banks would only be able to loan out 90% of what they had, instead of creating 10x and loaning it out, which is also a 10% reserve requirement. Charles Coughlin supported this idea in the 1930s
History, yo! Thanks, PB, for your always interesting (and often hilarious!) big-picture perspective.
Another great video.
First of all, an amazing approach to help demystify this “monetary” application of block chain technology. Secondly, I was wondering what would happen when the last bitcoin is mined? What incentive will there be to continue to have your servers guzzle down electricity so that numerous records of one transaction is validated? Would appreciate your thoughts..
similar to a credit card company, a % of each transaction will be siphoned off to be the reward for the miners, replacing the freshly minted bitcoins they currently get, but otherwise being distributed pretty much the same way as now.
And the blockchain mining participation will contract until an value equilibrium has been achieved (which we've already been seeing).
Or the whole system collapses because China gets and hoards all the bitcoin or people stop using it because it's simply too slow, and it ends up a niche novelty used primarily in 3rd world countries because they have literally nothing better.
@@ZanathKariashi Since Bitcoin is finite, what happens when all Bitcoins are lost? For instance, since Bitcoin inception, about 10% of Bitcoins are lost forever, due to people misplacing their cold storage keys, some lost them through hackers, and other simply die prematurely and took the Bitcoins with them to their graves. Since Bitcoin has lost 10% and been around like only a decade, at this current rate, that means there will be a time maybe in 90 years, all Bitcoins will be lost. Correct?
Nice one. Thanks a lot. Very interesting🙏
I'd say that this historical perspective was refreshing. It does go wrong in some parts like the distribution and the limited/predetermined amount of coins this changes a lot compared to the historical private currencies. Transaction costs for bitcoins are 5ct at the time of writing. It's just Ethereum which is very expensive.
How about power costs? Im curious, i dont know anything.
Bitcoin transactions are $1.36 as of writing, NOT $0.05. As far back as ycharts let's you look at for free, 5 years, Bitcoin transactions have never been $0.05.
@@trainraider8 try to set a lower gas on your transactions or use a solution such as lightning. Stop spreading misinformation. I do agree that ETH transaction fees are too damn high.
The big advantage of cryptocurrencies are smart contracts. Currently the only real use are DEX (decentralized exchanges) where you can exchange different currencies without a middleman. Also there is "lending" which is a bit of a misnomer in my eyes because it's not at all the kind of lending that a bank does, even though it's promoted as such. You always need cryptocurrencies as collateral which you could have sold instead of taking a loan, hence it's more about leverage or short selling.
With lower transaction fees (as on Cardano for example) this may add unique benefits in the future that we can't imagine yet.
Digital central bank currency, would be totalitarian by nature.
You could trivially shut individuals off from the financial system, say your political opposition,
and enforce a social credit scheme, whereby people could only use their money to buy gov approved purchases.
One of the most important aspect of cryptocurrencies is that they are programmable. While this might enable a never-before-seen dystopia, it might also make the economy more adaptable and enable a lot new types of businesses. Another perk is that with cryptocurrencies banks would be optional instead of being mandatory.
Which is the same as the alternative money of the past as explained in this video.
Sometimes you come across people who are just drunk on crypto, staggering around the internet repeating a few common crypto mantras.
The “crypto-bro” jargon even allows two (or more) people to think that they are talking about it without them actually really knowing anything about it.
@@soulflame799 Please do tell me how exactly were you able to program money during the 19th century?
@@masterofsaveloy Nice story bruh.
@@matiashamalainen4574 It was not possible to program money back then, and it is not possible today either. You are confusing blockchain technology with cryptocurrency.
Please, put the video in a loop and keep watching till you understand what's actually being said. ;)
I started using crypto in 2021 when half of the money i wired to a friend of mine (wanted to send 100 dollars) vanished. Im in cyprus and he is in netherlands, when i asked my bank 'my friend is telling me he received much less than what i sent him' they said 'we didnt cut any fees, your friend should have received it' and when my firend asked his bank they had ''no clue'' either. So my reaction to it was 'f this sh*t' and now its so easy to transfer money with LTC and with some similar coins. So biggest advantage crpto has is it being a trustless tool which is awesome and also it being great to transfer money.
I also hate when its stated ' crypto is helping criminals' bs. Traditional money has much more criminals in it and it is just as easy to be used for criminal activity.
The current bitcoin transaction fee is between 1.5 and 5 dollars NOT 20.
Not a percentage either, same fee for 50 bucks or 7 million.
Less with lighting network.
Agreed. I think Patrick may have cited some old numbers.
Just for perspective, I recently initiated a wire transfer which cost me $15 and took 1-3 business days, versus only a few minutes for Bitcoin (which is a relatively slow cryptocurrency).
One real nice thing about cryptocurrencies is that it’s quite a bit cheaper and faster specially for large sums of money.
@@cmnhrnytoad2003 indeed, practically free
@@notmuchherereally the 1-3 business day thing is so archaic and I can't understand how this isn't brought up here. Or how there exist solutions for the problems he's citing
@@notmuchherereally yeah, love Patrick and am sure that’s the case and these Premier videos are to point stuff like that out so all good.
I don't think crypto is supposed to be a replacement for money, just how stocks or store credit, airline credit, etc isn't ment to replace real money. It's just a better way to have your "money", similar how money was developed as a mean to trade more efficient and easier than having nugets of gold with you.
With all the hype around crypto and the relentless "crypto bots" hawking various advisors, cryptocurrencies feel like a Ponzi scheme to me.
The few feeless cryptocurrencies out there don't get enough attention..
Patrick, you didn't mention that private currencies didn't circulate widely because branch banking was illegal in this period. Obviously this caused problems for the system that did not exist in Canada or in Scotland.
LET’S GO TO 250K SUBS !!!
I really liked the history lesson, but at the risk of sounding like a crypto person, which I’m not, describing crypto currency as simply a way to buy stuff on the internet is a gross simplification and ignores the majority of what’s going on in the blockchain ecosystem
I used to believe in crypto currency. Now I'm convinced that they fundamentally incentivize away from use as currency, and toward use in bigger fool schemes.
We have chamber bucks in my county. Just a hypothecated dollar
Forgot El Salvador? Or how much Banks charge way more by anything?
One aspect of currency use you overlooked in your review is that citizens of a country will be short of the currency of that country because their obligations to pay taxes can only be discharged in that country,s currency. This creates permanent demand for that currency.
Advocates of cryptocurrency often claim that it is a solution for people concerned about the potential wealth losses due to “money printing” in their home jurisdiction. But a solution for citizens of weak currency countries already exists and existed before the invention of cryptocurrency: use strong currencies instead.
This already happens in places like Zimbabwe where the USD is in widespread use. For most countries most of the time this is only a temporary solution as the supply and value of foreign currency is unlikely to reflect domestic conditions over the long run and anyway sooner or later some of that currency will need to be converted to domestic currency to pay taxes.
Compared to the USD which can be used to settle international trade debts (the Chinese pay for Australian minerals with USD) and US taxes, Bitcoin are only of use and interest to a small number of enthusiasts who trade amongst themselves. It pretty small backing compared to just about any government issued currency.
That's nonsense, the whole problem is you need foreign exchange to do that. Any first year economics student would know it doesn't work that way.
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I guess gift cards are a form of private currency then? Perhaps we should switch to the Target gift card standard
I got two ads for "private currency" scams during this excellent video. It's like good and evil fighting for the screen.
I would say this is more on youtube for allowing scams
In 20 minutes, I learned more about the global, financial 'big picture' than 40 years of reading around. Thanks!
So did I, one of the best videos so far IMO
perhaps you should learn to read then?
I'm pretty sure that 20mins has turned into hundreds of hours of Patrick Boyle by now, innit? :)
Clear as ever and without all the hype or hate. Thanks Patrick.
Nothing like an emotionless Irishman to really break down a market.
No, he simply didn't do enough research before making his conclusions on such a complex subject. That's his bad. The perspective he gives is based on extremely dated information. The truth is crypto is breaking into derivatives, product verification, and smart contracts (automated contract settlement). Also, many cryptos are MUCH faster than credit card networks. Patrick blew it this time.
@@lamalien2276 sounds like something a crypto investor would say.
@@haydendriscoll8474 you mean a crypto cultist. 🤓
@@TheRustyLM Fiat isn't really backed by anything. Crypto is backed by that guy on Craigslist kills people. What a joke and a waste of time! I wish Patrick would do a video on all the characters involved in crypto they are all relatives of Bernie Madoff.
I can see why you are a visiting professor. You have a great ability to explain concepts in a way that can be easily understood by someone without a great deal of insight in the topic without sacrificing the complexity or depth of the subject.
My God, what an avalanche of information! This was incredible. History, markets, human psychology, crypto...way to connect it all, just fantastic!
yourcheapdate: Agreed. What it does for me is increase my skepticism toward BTC, etc, and make me think that the old time wisdom of Buffett, Munger, et al that crypto becomes worthless over time, is likely correct.
Not enough to want to bet on that, however. I earned my money. Throwing it away isn't in my play book.
@@rogergeyer9851 my favorite Munger quote is crypto is rat poison squared!
It's a travesty that this video doesn't mention the '1 Big Mac' coin.
And it's a missed opportunity that McDonalds doesn't issue coins denominated in units of Tendies.
Tammuz Kay:
So WHY is this a travesty (in your opinion)?
So I see with 1 minute of searching, that this was only redeemable through 2018 at some McDonald's stores. So now, it's WORTHLESS, except for those who want to collect them, and trade them on Ebay (apparently, included in my 1 minute of a quick search).
The McD Tendie would go straight to the moon.
@@rogergeyer9851 I was using hyperbole in an attempt at humor.
Fascinating. I wasn't really aware of much of the history of private currencies, so I learned a lot today.
Interesting side-note; in Scotland, where I'm from originally, bank notes are issued by authorised retail banks rather than the government, so you have several different sets of notes in circulation. Technically, these notes aren't actually legal tender, and I guess they are really a form of private currency. However the banks are required by law to hold reserves equivalent to the value of notes they issue, to guarantee their value. So I guess Scottish currency is basically paper stablecoins.
I remember the two brothers that grew a huge business in Scotland in the railroad era building Pullman style cars. The bank "notes?" or "letters of credit"? were routinely discounted in process. the same thing occurred with these financial papers authorizing purchase overseas, especially of cotton from Egypt. It was just part of the financial process in those days to account for long travel and exchange of raw materials, to manufacturing in a country far, far away.
In Hong Kong the money is issued by 3 private banks.
THATS LEGAL TENDER!!!!!!
Interesting fact there are couple of reasons why Scotland has three banks but one of them has to do the fact that the first bank the Bank of Scotland was believed to have Jacobite ties.
So when a new company wanted to move into banking parliament agreed to allow them as a form of competition. Hence The Royal Bank of Scotland was born
Also another interesting fact when the Bank of Scotland was first established it allowed for foreign investors to legally become Scottish citizens
"HOUSE OF CARDS" - both the traditional Finance and Bitcoin too, sure it has value because of scarcity but its price always sits on the foundation of US dollars .
When the chips are down, Bitcoin and crypto will shit the bed faster than any currency ever.
@Hakim Habib Are Millions of people competing to get Kidney Stones ? Come on Bro.
As an Ithacan, I can tell you that the Ithaca Hour's history is a wonderful and interesting story. Lovely to hear my city mentioned in your video. There are several wonderful lessons to be learned from the Ithaca Hour and it's history.
Can you please share some of the lessons? (If not, it's hard to gauge the value/relevancy of such glowing assertions.)
My crypto currency is just another form of financial asset that I hope goes up in value. I'd never spend any of them.
and that is the reason why it is not a good currency, and then why it will not be a good investment. No utility
@@ryanpatrick4920 I still think there is utility for a lot of them and the block chain in general
@@NickVetter If you persist in this high risk then I just have a few tips for you to keep in mind.
Do not forget your password. If you have a large holding of crypto's, then make sure you leave the access of it in your Last Will and Testament, so that this stored wealth is not lost forever, and can be converted back into real wealth (dollars) by whoever inherits your estate. You have no idea how many BTC are lost forever because so many knowitalls died without disclosing to someone the access to their holdings. BTC claims it has a circulation of 19 million. It is more like 8 to 10 million that are still in circulating existence.
Some weeks ago I watched a video that explained that "airline miles/rewards" (from Delta/AA/Continental) effectively work as digital private currencies... (much like the railroad operators did before)...
Learned a great deal of history with this video. Thanks Patrick.
Well, we still have Canadian Tire money lol
Saifedean Ammous on UA-cam discusses the real advantages with Bitcoin. I would really like to see Patrick have a discussion with him on UA-cam.
There's other countries.
Digital tracking of movement of goods could become a thing
Thank you BTC fans for your recent $400 billion donation to the world's anti-inflation efforts!
It'll be back.
?
Turned out to be a trillion. We appreciate it!
your early examples are all backed by a single entity or partnership, with the value/risk tied to the stability/reputation of the backer. Besides the ever greater fool believing that the crypto will grow in value, what is underpinning the new private money? Isn't crypto more like tulips than private money? No intrinsic value, no party responsible for the enduring value, great investment, but only if the next fool up believes it to be so?
Bitcoin is backed by the blockchain, and are able to be instantly traded by anyone anywhere on earth. This is an intrinsic value
I wrote a long comment and it got deleted automatically, I wonder why 🤔
Same here, I guess if you mention the word e.t.h.e.r.e.u.m or L.a.y.e.r 2 it'll get auto deleted or any other meaningful conversation about what it solves
@@nielsbishere omg, i wasn't even being toxic, ok will see haha
@@eyadkourdi2325 me neither, I just brought up some important points. He was trying to argue that crypto doesn't solve anything while that kinda suggests that he doesn't truly understand it
Private currencies are not illegal in the United States, but they are effectively illegal because of the laws related to capital gains taxes. Gold, for example, is a very good currency, however the bookkeeping required to use it as a day-to-day currency is extremely onerous... practically impossible.
Imagine having to keep a record of each time that you receive or spend money, plus a record of an exchange rate with each transaction.
I contend that private money has fallen out of use because capital gains taxes were introduced in the early 1900s, not because government money is inherently better.
Gold and silver are not a good currency regardless of tax law. It is too scarce for a large country like the US to meet the needs of its huge economy and large populous. Even if the government coined it, people would hoard it instead of using it to purchase things. It is also not easy to transport.
@@ryanpatrick4920 Too scarce? If demand goes up and it becomes more valuable, right? Do you contend that it'd become so valuable that it couldn't be denominated in small enough amounts? If so, you could use something less scarce like silver for small transactions.
Also, you can buy a house (a mansion?) with a brick of gold. How much do you need to transport?
(Edit: I do think electronic currency is easier to transport than gold, and thus it's probably better money. But, gold isn't bad money by any means.)
@@chrishubley7849 yes, that is exactly the concern. What the person in this video said about silver coins is true. They were not good denominations of coins because the silver that the coin was made out of was worth more than the denomination on the coin. So people stopped using it as a currency. Currencies need to circulate in order for an economy to grow. And that is more so a concern if it were gold. You would literally need to have a person weigh your gold and consult the market price before any transaction. I am not against the accumulation of gold and silver as a storage of wealth, but gold bugs make all these crazy suggestions about its being useful as a currency or as a standard reserve to back the dollar. None of it is realistic. Any true patriot would put their hope and faith in the US dollar, rather than trying to diminish its standing with these useless crypto's or scarce precious metals.
@@ryanpatrick4920 the problem of coins being worth more than their denominations comes from the government decree that, for example, a quarter is 1/4 of a dollar. If the value of the silver in the coin is worth more than the declared value the coin, the government has a big problem because the coins can be bought from the mint for the stated value melted down and sold for the market price.
As for everyone weighing coins, in the past coins were often weighed, but historically coins are created in standard weights and sizes to make transactions easier.
I watched an absolutely amazing video by you but can't seem to find it again. It was the one where Mr. wonderful was trying to make himself relevant by shooting zoom videos with his pants off. I was wondering if you knew the video I was talking about & the title ? Thank you so much. BTW I Love your insight & content !!!
That was the video called "My Investment Plan For 2022!" from around two months ago.
Scrips are still a thing. Especially Amazon Gift Cards are pretty valuable.
Oh boy here comes the 12 year sigma males
17:39 This is not the case anymore. Lightning Network transactions are instant and cost fractions of a penny.
Lets buy Cybertruck using Doge.
No Patrick YOU have a good day
With general news I go to the comments expecting a total $hitshow reflecting what the world is today. Your section gives me enlightenment on top of your video. Thank you all!
I find it humorous that the top comment thread below this video (aside from the pinned comment) is a conversation taking place between a whole troop of crypto scam-bots.
"faith" is a crucial term. Can we say the subject of our faith is subjective? Value of gold is essentially subjective too.
Love your content. Thanks for putting all this work into educating youtube.
Hi Patrick,
Another proof that your channel is very underrated 🙂
By who ?