Ep.8 The Electric Theory of Value


Hello Bitcoiners!

In this episode of the unhashed podcast: Can the Bank of England offer any criticisms to Bitcoin that could not be leveled right back at fiat, only worse? Will we ever find a secure way to use biometrics to access private keys and sign transactions? And…is there any chance Ripple will ever take responsibility for XRP or is the coin and all its hodlers doomed to be left holding the ripple bag? Find out the answers to these and other questions in this week’s episode of the unhashed podcast. See you on the other side.

Weekly News Wrap Up:

  1. Bank of England

    1. Summary:

      1. “Will people in 2030 buy goods, get mortgages or hold their pension pots in bitcoin, ethereum or ripple rather than central bank issued currencies? I doubt it.  Existing private cryptocurrencies do not seriously threaten traditional monies because they are afflicted by multiple internal contradictions. They are hard to scale, are expensive to store, cumbersome to maintain, tricky for holders to liquidate, almost worthless in theory, and boxed in by their anonymity. And if newer cryptocurrencies ever emerge to solve these problems, that’s additional downside news for the value of existing ones.”

    2. Echos a lot of Roubini’s points, so this seems to be the Central Banks/establishments current playbook

    3. “Congestion paradox”

      1. Centers around “Cryptos can’t scale” “For cryptos to be valuable, alot of ppl need to use them, but if a lot of people use them they will be too expensive to use.  

      2. Totally neglects new tech, like Lightning Network, which can scale the number of transaction supported on bitcoin manyfold

    4. Storage Paradox

      1. “N-fold increase in users and transactions, means an N-squared fold increase in aggregate storage needs. The BIS have crunched the numbers for a hypothetical distributed ledger of all US retail transactions, and reckon that storage demands would grow to over 100 gigabytes per user within two and half years.”  

      2. Again, this assumes all TX happen on the base layer, with no second layer transactions.  

        1. Talk more about how LN and side chains can scale the main chain

    5. Mining Paradox

      1. “Miners want small blocks with high, Users want large blocks”

      2. Bitcoin price vs Bcash price would suggest otherwise

    6. Valuation Paradox

      1. “The discounted cashflow model of asset pricing says value comes from (risk-adjusted, net present discounted) future income flows.  A second source is “intrinsic value”, like gold”

      2. This totally does not address why the USD has value.  All value is subjective

    7. Innovation Paradox

      1. “Perhaps the biggest irony of all is that the more optimistic you are about tomorrow’s cryptocurrencies, the more pessimistic you must be about the value of today’s.”

      2. Assumes we can’t make current currencies better

  2. Dangers of Biometric creation of Keys

    1. Fake fingerprints can imitate real ones in biometric systems

  3. Roger Ver now “pretty damn skeptical” of Wright being Satoshi

    1. Just...lol

    2. “Why are you mad at any digital currencies? Be mad at the fiat currencies that are used to manipulate people all over the world. That’s the currency you should be mad at. Not at Bitcoin Cash.”

    3. “Like Vitalik [Buterin] said, if it turned out that Craig were Satoshi, that would just lower my opinion of Satoshi at this point.”

  4. Bitcoin continues to tumble

    1. Is BCH hard fork to blame or too simple?

  5. Ripple adds 5th largest SE Asian bank to Enterprise Blockchain Network

    1. Still no sign of XRP - lol

    2. What makes ripplenet different than SWIFT besides calling it a blockchain?

    3. Bloomberg video with ripple CEO

  6. SEC seems to be going easy on ICOs

    1. Airfox and Paragon both ordered to pay $250K penalty for issuing unregistered securities. Both raised between $12 - 15 million.

    2. SALT Lending issued a subpoena.

    3. “Etherdelta pays a fineEtherDelta founder Coburn neither admitted nor denied the findings, but he consented to cooperate and to pay the state $300,000 in unlawful profits.”

ICO My God, They’re Serious:

ZPE Coin


Colin: Defunctland

Bryan:  Fry your Turkey, just make sure it’s thawed first

Mario: Is market cap a bad metric

Outro Audio:

The Mumbling Explanation of Bitcoin from Clickhole


Make sure you are storing your crypto on something secure like a Ledger and backing it up on something sturdy like a Billfodl. If you buy these items through the links above, we do take a cut of the profits but it also helps support the show - a win/win for all involved.

Colin aulds