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Interview: Bullish On Lightning Network With Thomas Jestopher

Jestopher joined “Meet The Taco Plebs” to talk about his Bitcoin journey, price predictions and the Lightning Network.

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For this episode of Bitcoin Magazine’s “Meet The Taco Plebs,” I was joined by Thomas Jestopher (@Jestopher_BTC), a Lightning Network enthusiast and co-host of “Bitcoin Kindergarten.”

We kicked off this interview with Jestopher sharing his rabbit hole story, discussing his first attempt to buy bitcoin from Mt. Gox in 2015. In order to buy bitcoin from there, you had to wire money to the exchange in Japan, and his bank actually blocked his transaction, forcing him to look for other avenues to acquire BTC.

Using faucets, Jestopher was able to stack some sats in trade for his time watching ads on websites. He did this for a while, but didn’t make his first actual purchase until the bull run in 2017. At the time, he worked in a call center where he saw just how corrupt and unfair banks are to their customers. This, in addition to the price catching his attention, caused him to fall deep down the rabbit hole.

Jestopher shared his thoughts on how Bitcoin inspires innovation for builders and entrepreneurs to flourish. Since the Bitcoin protocol does not change, and upgrades only happen so often, people now have a solid base layer that they know will always be there, and they know nothing will change on them in a negative way. This gives builders comfort knowing that they’re building on a solid foundation.

Jestopher was one of the many people who got inspired to build on Bitcoin, and saw massive potential in the Lightning Network. We discussed the entrepreneurial opportunities that pop up thanks to Lightning and how people can become more independent from taking tips on the second layer solution. Then he shared his thoughts on using the Lightning Network on top of Bitcoin as a medium of exchange.

Below are some of Jestopher’s most interesting thoughts shared during the interview. And be sure to check out the full episode for more.

How Did You Find Bitcoin And Fall Down The Rabbit Hole?

I first attempted to buy bitcoin from Mt. Gox in early 2015 and my bank rejected the transaction. I resolved to visit a series of faucets and watched countless hours of ads to walk away with about a dollar’s worth of bitcoin. Naturally, I deposited into one of the many gambling websites and promptly lost about all of it.

My next interaction with bitcoin happened in the 2017 run up when my Reddit feed was dominated by Bollywood dancing GIFs, which I almost filtered out, but instead I made possibly the best decision of my life and decided to actually buy some bitcoin, just a small fraction.

I had previously worked in a call center that provided information on class action lawsuits. Most of the lawsuits that I was providing information on involved banks that were using practices that benefitted the corporation at the expense of their customers. For example, a lot of banks chose to reorganize their customers’ transactions in highest to lowest dollar order. In effect, that meant that whenever a customer ran out of funds, the customers would get charged more overdraft fees than if the bank never reorganized transactions. For most banks I encountered, an overdraft fee was $30, which is already a lot to charge someone that literally has no money. I remember thinking that the decision to reorder transactions to generate more overdraft fees from customers who were broke was a shameful way for a bank to increase revenue. Which customer would ever vote for that type of policy?

Once I had actually bought bitcoin, I started listening to “The Internet Of Money,” Andreas Antonopoulos’s book, and the combination of concepts behind bitcoin resonated with me so deeply, between the disruptive power of technology and the humanitarian benefits derived from a completely opt-in protocol, immune to the policy decisions of banks and corporations. This technology is both massively disruptive and gives me more hope for humanity than anything else in the world.

How Has Bitcoin Changed Your Life?

Bitcoin has made me far more frugal, less political, more privacy conscious, more technology-focused and way more obnoxious if you somehow still don’t own bitcoin.

One phrase that came to mind early in my bitcoin journey was “Never before has greed tempted me to live a very simple life.” As soon as I said it in a bitcoin chat, another bitcoiner responded with a bright orange image with my freshly-quoted words strewn across it. It was true then and it’s still true today where I feel inclined to rid myself of possessions because all these consumer things are just depreciating assets in bitcoin terms. I feel like mainstream environmentalists have been missing how positively the earth can benefit from converting consumers into long-term savers.

What Is The Most Amazing Thing About Bitcoin To You?

The most amazing thing about Bitcoin is that it inspires innovation. While bitcoin seems intimidating at first, the fact that it is so resistant to change makes it a solid platform to build on. Builders don’t have to keep up on all the latest developments or worry about the next president removing your favorite feature. Bitcoin will stay true to its roots, which makes it easier to launch a successful business and to create specialized tools.

It seems impossible to find a place to specialize outside of bitcoin because the world is in a state of flux between disasters, both natural and political, that make it difficult to find your niche. Bitcoin makes it easy to specialize and I’ve found my place in the Lightning routing community where we’re trying out the latest tools and gathering feedback to make really smooth user experiences on Lightning.

What Are You Most Looking Forward To In The Bitcoin Space?

I’m most looking forward to watching the Taproot activation play out, which will give me some good clues about whether or not other protocol changes that specifically benefit Lightning will get implemented.

I’m also looking forward to data markets emerging where privacy on Lightning will be less of a guarantee and more of a market. Routing nodes have information on individual payments, which is valuable data for surveillance companies as well as other routing nodes searching for where to provide liquidity. If someone wants to track an individual payment, they’ll have to pay to get that data and the market will find an equilibrium between individual privacy and network efficiency.

What Is Your Price Prediction For The End Of 2021 And The End Of 2030?

I’m a terrible trader, which is the primary reason I only HODL bitcoin, but I’d guess that the end of 2021 will be in a mania phase and we’ll see bitcoin over $400,000. The end of 2030 should see bitcoin approaching the $10 million level as the fiat experiment comes to an end.

Source: Bitcoin magazine

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Crypto News Updates

Interview: Austrian Economics And Understanding Bitcoin With Hodlberry

Hodlberry jumped on “Meet The Taco Plebs” to discuss the things about Bitcoin that amaze him most.

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For this episode of Bitcoin Magazine’s “Meet The Taco Plebs,” I was joined by Hodlberry (@hodlberry), a faithful, honest and hardworking pleb.

This conversation started off with Hodlberry sharing his Bitcoin rabbit hole story. He went into detail on some fun things he was doing at the time he found Bitcoin, like hosting a gun-related podcast. Then he shared how when he first got into the space he bought some shitcoins, but ended his shitcoin phase early as he already understood Austrian economics. From my own personal experience and seeing others as well, having/learning Austrian economic teachings is crucial to getting a firm understanding of Bitcoin. Because of this understanding of Austrian economics, he was already into gold and silver, but dropped those for more bitcoin eventually.

Before Bitcoin, Hodlberry was living above his means and not saving a lot of money. Now with Bitcoin, he has adopted a lower time preference which is causing him to live below his means, and save more in bitcoin. He shared his thoughts on the book “Human Action” by Ludwig von Mises and why it’s so important. This is a book I’ve yet to read, but I have read similar books, such as “The Theory of Money And Credit” by Ludwig von Mises and the lessons you learn in these books are life changing.

We also got into topics like home schooling children, how Bitcoin solved the problem of triple entry accounting, what Hodlberry wants to see moving forward with the Lightning Network and more.

Below are some of Hodlberry’s most interesting thoughts shared during the interview. And be sure to check out the full episode for more.

How Did You Find Bitcoin And Fall Down The Rabbit Hole?

I don’t remember how I heard about Bitcoin, but I started with alts in February of 2017 with Ethereum. I was doing what a lot of people are doing today with the alt casinos. It was a crazy time, you made money on everything and anything you bought. It just went up and up. During early 2017, I started to learn more about maximalism from guys like Saife, Pierre, Bitstein, Marty and Stephan Livera. I watched lectures on how bitcoin actually worked and was hooked. I consumed a lot of content and was orange pilled pretty early in my journey.

How Has Bitcoin Changed Your Life?

I’ve saved more money than I ever have in my life. I have confidence that building things for the future won’t be a waste of time because they are no longer on the sandy foundation of fiat. The low time preference aspect of Bitcoin touches so many areas of life. In short, it’s made me an adult.

What Is The Most Amazing Thing About Bitcoin To You?

Bitcoin is like a beautiful diamond with many wondrous facets. You look at it one way, and it shines like a beautiful piece of computer science engineering. You look at it another way, and it’s a perfectly designed game theory machine that keeps everyone in consensus. I personally love the sound money aspect, because it allows humans to create civilization on solid footing.

What Are You Most Looking Forward To In The Bitcoin Space?

I’d like to see the circular economy grow a little more. I love HODLing, but when we can spend in bitcoin only for most transactions, that will be an exciting day. I want to cash in my last dollar, forever.

What Is Your Price Prediction For The End Of 2021 And The End Of 2030?

I’m predicting $150,000 to $250,000 by the end of the year and $10,000,000 by the end of the decade. I think that’s a reasonable expectation for the most sound money ever created.

Source: Bitcoin magazine

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How To Make A Profit In Bitcoin Easily

The path to accumulating wealth with bitcoin is one that anyone can walk, regardless of its fiat performance.

*None of this is financial advice! Please do your own research before buying bitcoin.*

Since the historic, bloody event of March 12th, 2020, when the price of bitcoin dropped 50% in 1 day, its price has been in a constant uptrend. Going from ~$3,800 to $64,000 in roughly 1 year, bitcoin is in a historic bull run. Many people are making profit in bitcoin, and you’re wondering how you can get in on the fun.

But what does making profit mean in bitcoin? Whereas most think that profit means making more U.S. dollars, I disagree, and we can turn this argument on its head. Making profit in bitcoin is when your total satoshi count (the amount of BTC you own) goes up. In the end game, when fiat dies, the only thing that will matter is bitcoin. When counting profits, you need to use the correct unit of account. Bitcoin is that superior unit of account, not the downtrending U.S. dollar.

Now that you’re evaluating your wealth in BTC terms, what do you do? Do you trade bitcoin? Do you trade other cryptocurrencies? Do you try to time the market, buy low and sell high? Nope. The easiest way to make a profit in bitcoin is to buy and HODL. That’s it. Nothing complicated. It takes no time out of your day, and you don’t even have to think about it.

The beautiful thing about bitcoin is that it’s not investing, it’s saving. When you invest, you take the money you earned from your day job and invest it in assets like stocks and real estate in the hopes that you can turn a profit in the future by selling it. You have to take your money and buy assets with it, and your investments can turn out poorly. Saving is taking your earned money and simply saving it—not taking your bitcoin and investing into other assets hoping to make a return, but just letting it sit there and do nothing.

Saving in bitcoin is the best way to increase your purchasing power because of the hard-capped supply of 21 million BTC combined with its increasing user adoption. All you have to do is sit on bitcoin; there is absolutely no need to use your bitcoin to take on risk. As bitcoin was the best-performing asset of the last decade and is looking to be the best performing asset of this decade, one would be a fool to invest one’s bitcoin into other assets.

Bitcoin is not a giant bubble destined for $0; that is only something mainstream haters say when trying to discredit Bitcoin. Once you understand how the Bitcoin protocol works, you realize that there is little to no risk in using bitcoin as a savings vehicle. Its price fluctuations are just market participants reacting and have nothing to do with how Bitcoin is governed. Bitcoin goes through big booms and small bust cycles, eventually en route to infinity. Anyone buying or dollar cost averaging into bitcoin, making it their unit of account, is profiting. Get to the point where every time you stack more satoshis, you hit a new all time high, regardless of bitcoin’s current dollar price.

Please note: this works for bitcoin (BTC) only! The above does not apply to any other cryptocurrency.

Chart via https://bitcoin.zorinaq.com/price/

This is a guest post by Nik Hoffman. Opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.

Source: Bitcoin magazine

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Crypto News Updates

Interview: Bitcoin Reinforces Good Habits With The Littlest Bitcoin Boomer

The Littlest Bitcoin Boomer joined “Meet The Taco Plebs” to discuss his Bitcoin journey.

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For this episode of Bitcoin Magazine’s “Meet The Taco Plebs,” I was joined by The Littlest Bitcoin Boomer (@littlesthodler), an optimistic, sat-stacking pleb.

We started off this interview by going over The Littlest Bitcoin Boomer’s rabbit hole story, diving into what brought him to Bitcoin. Littlest shares he was going through a rough patch in his life, making bad decisions and being dishonest. Then he found Bitcoin, and his life did a complete 180. He shared how Bitcoin changed him and why Bitcoin reinforced good habits. He jumped onto Twitter to look for more discussion about Bitcoin, found the plebs and joined. I like to say that the taco plebs are like a pack of wolves. The wolves take care and look after each other, while defending against and attacking any threat that is present.

Littlest also shared some of his insights as to what’s going on over in Canada with the monthly $2,000 stimulus checks, and its “shaky liberal government.”

He then shared how he loves Bitcoin’s equality and why it’s great. He explained that everyone stacks the sats they deserve. It’s another form of proof of work, you put in the work to earn fiat (or bitcoin straight up) to then buy and HODL bitcoin. You get to choose how much effort you put into stacking, and no one has an advantage over you. Everyone plays by the same rules, and no one can change that. It is up to the individual now to stack as much as they want.

We go into how rules, not rulers, are what is important to Bitcoin. We discussed how Bitcoin levels the playing field and why I think the plebs are going to dominate in the future. Why? Because they are hardworking, smart and passionate individuals who do what’s best for ourselves and Bitcoin. This conversation got me really bullish, and I know it will make you bullish as well.

Below are some of Littlest’s most interesting thoughts shared during the interview. And be sure to check out the full episode for more.

How Did You Find Bitcoin And Fall Down The Rabbit Hole?

The short version is, a series of poor life choices put me on a path a few years back that I slowly came to realize wasn’t going to get my life where I wanted it and wasn’t going to provide the life that my wife and kids deserve. Poor self-discipline and no financial knowledge put me on a path to ruin that started affecting my relationships that came to a head in 2018. I met with councilors (mental and financial) and got my spending under control and it was amazing how quickly my mental health turned around — things got better.

When I started to get ahead in life I started thinking about the future, which led me to learn more about bitcoin and some altcoins. I have always been into tech so I knew about bitcoin, but jumping into bitcoin Twitter and YouTube opened my eyes to how corrupt the fiat system was, and how if I didn’t put my money somewhere safe it wouldn’t matter if I turned my life around or not if my savings became worth $0. Like many, I did get into a few alts under that “get rich quick” mentality, but after a few months of podcasts, articles, etc., it was clear that the vision of bitcoin was vital, and it’s what made it special and different from the shitcoins.

I dumped my bags into bitcoin and have been a maximalist ever since. I was very lucky, but a number of people have told me it was strange that I got in during a bear market when the hype is low. What made a huge difference, and I can’t stress this enough, was the upcoming Halving. While I like the “NGU tech” memes as much as everyone else, the Halving events are the best time to learn about bitcoin from the outside, because the chatter is focused on the “why” of the Halving, and why these events make bitcoin the best money the world has ever known.

How Has Bitcoin Changed Your Life?

This is explained in a thread I did a couple of weeks back that seemed to really resonate with people. The biggest way that bitcoin has changed my life is simple — when you are hopeful for the future you can escape nihilism and become who you are supposed to be. Once I came to the conclusion that bitcoin was the only thing that is going to save us from corrupt governments and disastrous Federal bank policies and I had a stake in this revolution, it allowed me to continue focusing on myself and my relationships and kept me from relapsing back into bad habits that had threatened to destroy the life I wanted to have. When you have hope for the future, you work hard to make sure that the future is bright. That’s what bitcoin did for me.

What Is The Most Amazing Thing About Bitcoin To You?

Equality. You can reference 1,000 ways the fiat system is stacked against regular people. Call it the Cantillon effect, nepotism, elitism, whatever, even being lucky enough to be born into a middle class in a Western country, so many things about our system are stacked against us. With the hard cap of 21 million coins, regular people have a chance to become part of a system that doesn’t care if people were born millionaires, have a parent that is head of a central bank or are millionaire athletes. Grab your sats and HODL, and the deflationary rules of bitcoin will make sure your wealth grows.

What Are You Most Looking Forward To In The Bitcoin Space?

I am looking forward to new businesses and services built by people within the bitcoin space. Sure it’s cool that PayPal and Visa are getting into the game, but it’s by their old rules and their old assumptions coming from a fiat system. Companies like BTCPay, Fold, CryptoCloaks, Privacy Pros, BitPiggy and projects like the Lightning Network, are building their models around bitcoin and using it as a starting point. These are the companies that are going to be out ahead with strong community support and great models moving into the future. I guess my answer is: I am looking forward to more companies by bitcoiners, for bitcoiners.

What Is Your Price Prediction For The End Of 2021 And The End Of 2030?

Ah! How to answer this without being yelled at for being bearish?!?! Since the price flattened out a couple of weeks ago it has been moving from $73,000 to $75,000 here in Canada so I don’t see any way it doesn’t hit well above $100,000 in The Great White North by the end of 2021. As far as 2030 goes, I can honestly say I don’t care. It’s going to be some foolishly high “we told you so” number and we will all look back at these shitposting days on Twitter with fondness as we quietly smile at nocoiners spending thousands of dollars for a handful of sats.

Source: Bitcoin magazine

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Interview: Building A Career In Bitcoin With BtcCasey

Bitcoin Magazine’s BtcCasey hops on “Meet The Taco Plebs” to talk about how Bitcoin has changed his life.

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For this episode of Bitcoin Magazine’s “Meet The Taco Plebs,” I was joined by BtcCasey (@BtcCasey), a young gun who loves to write about Bitcoin.

The other week, Casey flew into town with the rest of the Bitcoin Magazine team and I got the chance to meet him in person. Casey, the team and I hung out all week and got to know each other a lot better, and I knew I just had to get him on the show.

Casey is a Bitcoin zoomer, writing about Bitcoin and making a career out of it. I think it’s fantastic to see other young people pursuing their passions and aiming to be successful. Casey has a bright future and is making really smart moves right now that are building a foundation for his future self to really excel. If you’re not reading his articles, you probably should be.

In this interview, Casey discussed how getting involved in Bitcoin changed his career path, as well as his educational goals. He was previously in the healthcare industry and realized he wanted to leave to pursue writing, and he did just that. His time preference has lowered, which has influenced the way he thinks about this future. He knows adopting a low time preference at a young age comes with lots of benefits, and he’s trying to capitalize on all of them.

He shared his thoughts on the leverage that Bitcoin gives individuals to view the world in a different light. Bitcoin is extremely powerful and has the ability to give people freedom from that leverage. The task of achieving financial freedom is pretty difficult under a fiat standard, but Bitcoin fixes this.

Below are some of Casey’s most interesting thoughts shared during the interview. And be sure to check out the full episode for more.

How Did You Find Bitcoin And Fall Down The Rabbit Hole?

Starting in 2020, I took advantage of the circumstances created by the pandemic surrounding my life and began to invest all of my money as a means of supporting myself. Upon discovering that bitcoin was the superior asset to invest in every conceivable way, I went all in and never looked back.

How Has Bitcoin Changed Your Life?

Bitcoin has given me freedom, both economically and philosophically, and it has enhanced my life in so many ways. My entire career path has been rerouted in dedication to Bitcoin, and therefore my future is closely intertwined with the technology.

What Is The Most Amazing Thing About Bitcoin To You?

It is so immensely simple that it hampers intellectuals’ ability to understand it.

What Are You Most Looking Forward To In The Bitcoin Space?

Getting to know all of the amazingly smart people involved in the space and watching it grow into the hyperbitcoinization blackhole we all know it will.

What Is Your Price Prediction For The End Of 2021 And The End Of 2030?

End of 2021, $350,000, end of 2030, $500 million-plus.

Source: Bitcoin magazine

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Crypto News Updates

Southampton F.C. Can Now Pay Player Bonuses In Bitcoin

English Premier League team Southampton has reportedly signed a deal with Coingaming Group that would let it pay player bonuses in bitcoin.

Bitcoin continues to creep into professional soccer as Southampton Football Club signed a three-year deal with Coingaming Group to be the club’s main partner, which will see Sportsbet.io remain its jersey sponsor, according to a report.

This partnership allows Southampton’s players to receive their yearly performance bonus paid in BTC and is the biggest sponsorship in its club history, per the report.

Let’s put into perspective how bullish this can be for Bitcoin: The Saints’ star striker Danny Ings’ salary makes him about $5.35 million (£3.9 million) per year. If he’s paid a 5 percent bonus, for instance, that would net him about $268,000 (£195,000) in bitcoin.

All 24 players on Southampton’s roster will be eligible to receive bitcoin as their bonus payments. Southampton plays in the English Premier League, which has massive sums of money going to players left, right and center. The potential for these salaries to be paid in bitcoin is extremely bullish, as that would be a significant amount of BTC being taken off the market, and one can only assume that the players who do opt into accepting bitcoin will store it in cold storage.

This was Southampton’s first season with the Sportsbet.io logo on their uniforms, and the CEO of Coingaming Group, which operates Sportsbet.io, Maarja Pärt has been very pleased with the results.

“Our first season as Southampton FC’s main club partner has already exceeded all expectations,” per the report. “We’ve been inspired by the passion of the club and its fans, and it was an easy decision for us to extend our partnership with the Saints for another three years.”

Last year, Watford F.C. had a Bitcoin logo on its jersey sleeves. Now, with this news from Southampton, it’s clear that Premier League clubs have shown that they are open to Bitcoin and it’s only a matter of time before more teams follow suit.

Southampton is leading the way for Premier League teams on the Bitcoin front, and this could potentially bring in lots of income, allowing it to attract more talented players and compete at a higher level. So, the next question is, does Southampton hold bitcoin on its balance sheet? 

Source: Bitcoin magazine

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Professional Soccer Players Are Buying Bitcoin And It Will Protect Their Wealth

Professional soccer player Ryan Babel has reportedly onboarded teammates to bitcoin, helping them secure and grow their wealth.

According to online reports, Galatasaray S.K. and Netherlands national football team’s Ryan Babel has been shilling bitcoin to his teammates.

Babel has played for Ajax, Liverpool, Fulham and others. He has played in the Champions League, Euro 2012 and the World Cup building connections to some of the best-known and well-compensated soccer players in Europe. Babel has shared his eagerness to accumulate bitcoin on Twitter, so it is not a stretch to imagine that the reports are accurate.

If Babel and his teammates have been buying bitcoin for the past six months, for example, then they’ve made some hefty gains. This is as important to athletes as it is to anyone else, as they need a place to store their wealth in the best possible way. Securing their wealth behind a wall of cyber hornets and a 21 million supply cap ensures it will not deteriorate, but actually increase in value. The only meaningful difference between Bitcoin plebs and pro athletes is that the latter tend to have tens- to hundreds-of-millions of dollars more than the former with which to buy bitcoin.

Athletes have also been buying bitcoin here in the U.S., with NFL player Russell Okung using Strike to get a sizable portion of his $13 million contract paid to him in bitcoin. Why? Because Bitcoin is the perfect tool to protect one’s wealth. The average career length of athletes isn’t too long, and even though they make a lot of money, they need to protect it for the rest of their lives. Bitcoin excels at this.

Buying bitcoin, especially at around $60,000 prices, gives professional athletes a massive potential upside in gains. To put how big the gains can be in perspective: Babel reportedly earned a $2.37 million signing bonus in 2019, and the price of bitcoin rose by 87 percent across that year. Had he been able to allocate that bonus to BTC, he would have made more than $2 million in profit.

Rich athletes are figuring out that if they want to make a lot of money, all they’ve got to do is accumulate bitcoin, and sit on it. 

Source: Bitcoin magazine

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Interview: Surfing, Construction And Bitcoin With Surfer Jim

Surfer Jim joined “Meet The Taco Plebs” to discuss his rabbit hole journey and how Bitcoin builds trust.

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For this episode of Bitcoin Magazine’s “Meet The Taco Plebs,” I was joined by Surfer Jim (@surferjimw), a principled and hardworking pleb.

We started off this conversation with Jim sharing how he found Bitcoin and fell down the rabbit hole. He talked about his childhood and how he was always an entrepreneur and builder. He liked to break things down, see how they operated and build them back together. Hands-on work like this teaches you a lot about how and why things work and are the way they are. He also talked about how he used to earn money as a kid digging for clams. This was an easy way to make a quick buck, though some days weren’t as good as others. This then led Jim to a new opportunity.

One of Jim’s buddies offered him a job in a different field of work, and he jumped on the opportunity. He then worked for five to six years as a salesman, but after listening to a motivational speech, he knew he wanted to go into a different line of work, construction, because he knew he made great quality stuff that he could sell and use to build trust with his customers. This is where Bitcoin comes in, because Bitcoin helped build trust between Jim and his customers.

After his rabbit hole story, we talked about how schools don’t teach kids about money and why that’s bad. Learning about money today is a totally different separate process you have to partake in away from school because school has a clear incentive not to teach you about it. I think many kids make poor financial decisions in their early lives that negatively affect them in the near and far future. Studying Bitcoin fixes this.

After studying Bitcoin and getting a firm grasp on it, Jim is excited for his future. He understands the freedom it gives him to enjoy the rest of his life, allowing him to do whatever he pleases. He is more stoked on Bitcoin and life than you!

Below are some of Jim’s most interesting thoughts shared during the interview. And be sure to check out the full episode for more.

How Did You Find Bitcoin And Fall Down The Rabbit Hole?

I heard a podcast linking trust and Bitcoin and had to investigate. This was my third touch.

How Has Bitcoin Changed Your Life?

There are too many ways. Better health, more wealth, enlightenment, more and better friends.

What Is The Most Amazing Thing About Bitcoin To You?

The way it works — that most will never have a clue about.

What Are You Most Looking Forward To In The Bitcoin Space?

The price going so high that I can easily retire soon, so I can enjoy the rest of my time here.

What Is Your Price Prediction For The End Of 2021 And The End Of 2030?

2021: $200,000 or higher. 2030: $1 million to $10 million, or maybe higher.

Source: Bitcoin magazine

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Crypto News Updates

Bitcoin Will Make You Rich, Not Attending A University

There’s an opportunity cost in every decision you make, but choosing to pay a university over buying bitcoin could cost more than you think.

There is an opportunity cost in every decision you make in life. Some are bigger than others, but there is one I’ve seen way too many people fall for, and that is earning a degree at a university instead of buying bitcoin.

Attending a university today is extremely expensive and is pushed onto kids so hard that it’s almost predatory. Most kids don’t have the money to pay for it so they’re incentivized to take on debt to attend, and this often backfires on students. Degrees don’t guarantee jobs, and many young adults are left jobless, with debt and no direction in life.

As a college dropout myself (backed up by my bitcoin friends who also dropped out), I can confidently say that accumulating bitcoin and working on your passions is a much better use of your time and money than attending a university. Don’t believe me?

Let’s crunch some numbers.

Cost

Take, for instance, James Madison University, a university in my home state that I was planning on attending but I eventually turned it down.

If I would have attended this University straight out of high school and the annual cost (in state) would be $26,726 for tuition, room, board, books, travel, personal costs and loan fees. After a bare minimum of attending the school for four years, the cost would total more than $106,904.

Source

The price of bitcoin was $6,537.74 on July 5, 2018 via price by date, the day students would start paying their schooling costs. If you would have invested that year’s cost of $26,726 into bitcoin on that day, you would have netted 4.08796951 BTC, which, at the time of writing, is worth $235,285.28. If you would have invested the cost of all four years on that day, that would have netted you 16.351828 BTC, which, at the time of writing, is worth $942,846.40.

Both that 4.08796951 and that 16.351828 BTC are way more money than most people will ever see in their lifetimes. To accumulate this much of a limited supply asset is a once-in-a-species opportunity that is wasted by nearly every young person.

A 20- to 21-year-old with that bitcoin could just sit on the BTC for the rest of their life and outperform most, if not all, of their colleagues who got a degree (or degrees) from a university. They could even take some of that bitcoin, develop a product or sell a service by starting a company, in hopes to provide value to their society. Having more wealth opens your options in life tremendously, and gives you the freedom to explore your passions. This is something that university students don’t get to experience. It’s a much better way to start your adult life than to be shackled in debt with no money and no real sense of direction in life.

Many who can’t afford that upfront cost always have the opportunity to attend college and use their student loans to buy bitcoin, which makes you able to afford this. But that can be uncomfortable for most, so even if you don’t have that money to buy bitcoin off the bat, working a job(s) to buy as much bitcoin as possible still puts you in a position that’s way ahead of everyone else. In the recent couple-year bear market, there was a Zoomer named David on Bitcoin Twitter who was able to accumulate more than two BTC working part-time at a coffee shop. That’s now worth about $116,000 at the time of writing. This savings got him two of the 21 million total supply of bitcoin, and put him on track to be in the 1 percent in terms of net worth.

Bitcoin is currently priced at about $58,000 fewer than three years later. But this argument of accumulating bitcoin instead of paying to attend a university is still valid. The upside and potential ROI for bitcoin is unimaginable to those who don’t understand Bitcoin and the current state of the financial world.

Image via Twitter

 Education

Educating myself online and working jobs in fields that I’m interested in instead of attending a university has been one of the best decisions I’ve ever made. I’m free to express myself and find out what I like and don’t like about different careers. In a university, you learn all about potential careers but you are never really sure if that’s what you want until you try it for yourself — which many students don’t do, they just get the degree and ask questions later. I’ve talked to many people who earned a degree for a career they ended up hating, who wish they never got it. But I’ve never heard someone regret earning bitcoin and being upset at the results that came with it.

The education that you tend to gain in the Bitcoin space is around taking responsibility, self sovereignty, Austrian economics, providing value to society, thinking for yourself and more. Most if not all of this can be learned at just the cost of a phone/computer and an internet connection. You don’t have to pay for any of the required university costs above, this can be all learned for free.

Why pay hundreds of dollars for a single textbook that teaches Keynesian economics, which emphasizes the state at your expense, when you could buy “The Theory Of Money And Credit” by Ludwig von Mises for $12.99 on Amazon? You get a more useful and better book for a fraction of the cost.

I got the education of a lifetime on Twitter and a few other sites. It has allowed me to socialize and network with some of the most brilliant minds in the world and opened up doors I never even knew existed. Since we are so early, there is endless opportunity in the Bitcoin space, just waiting for someone to come and grab it. There are many things about life that you will not learn from a classroom and must learn from a mentor. The Bitcoin space has loads of smart adults who are eager to pass on their knowledge to younger generations, helping them succeed. This is a huge step up from university networking, where you’re just talking with a bunch of kids who also have no idea what they’re doing in life.

All In All

Accumulating bitcoin while pursuing your passions in life is a more beneficial use of time than paying to attend a university. It results in you avoiding any bad debt while saving life-changing amounts of money. This life-changing amount of money then allows you to face any challenge head on and reach your full potential.

The great thing about this is while you’re getting rich and earning life/work experience, your options open up. You wouldn’t need a degree to have a successful career, because you’d have the experience and capital to do whatever you want. And if you do want to get a degree, you can go later, after you’ve made your money and the cost of the degree is cheaper (priced in bitcoin).

There’s a whole world full of opportunities for us to go chase. There is an opportunity cost in everything we do. Some decisions are better than others. Bitcoin gives us the possibility to actually go about life debt free, worry free and financially free. The cost of attending a university stands in the way of that for young adults.

This is a guest post by Nik Hoffman. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

Source: Bitcoin magazine

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Crypto News Updates

Bitcoin's Hierarchy Of Needs

We can apply Maslow’s hierarchy of needs to Bitcoin to find out what needs it must obtain and maintain to succeed.

In order for Bitcoin to achieve hyperbitcoinization, it has to fulfill certain network and monetary needs. Without obtaining and, more importantly, maintaining these needs, Bitcoin can not succeed. If Bitcoin can obtain and maintain these needs, then there is nothing that can stop it.

This article is a play off of Maslow’s hierarchy of needs; the idea that people have to go through certain levels of life to eventually reach happiness and live to their full potential. This theory can be applied to Bitcoin.

Image via @Nikcantmine

This is the game plan; this is how Bitcoin achieves world reserve currency status.

Network Needs:

Base Layer: Fair Launch

No currency has a shot at mass adoption or a chance at being the global reserve currency if it’s been cheated from the start.

One of the many things that separates bitcoin from the thousands of other cryptocurrencies was the fair launch on January 3rd, 2009, over two months after Satoshi Nakamoto released the Bitcoin white paper on October 31, 2008. Not to mention the reason why Bitcoin was created in the first place, which was a direct result of the 2007 to 2008 financial crash, fiat currency and central banking. It was made as a solution to a problem. All other coins came after seeing bitcoin’s success, tried to copy it, and failed.

Satoshi didn’t create Bitcoin in the hopes of scamming others, he did it to provide anyone an inclusive monetary system that was fair. Not only was there no premine, where a founder allocates a large portion of the coins to themselves, Satoshi also made sure to give potential participants advanced warning before launch. It appears that it was important to Satoshi for Bitcoin to be perceived as not having been created for any one individual’s gain at the expense of others.

Satoshi programmed the first block to be locked in, resulting in the first block reward of 50 BTC being unattainable. Neither Satoshi, nor anyone else could grab those bitcoin, and now there are 50 fewer BTC out of the approximately 21 million total supply available. If the creator would have just taken the BTC, it would not have been fair. After that first block was in place, miners could then start hashing away and building the chain.

Minting new currency onto the blockchain must be fair, with no one entity having an advantage over others. This system needs to be inclusive, where anyone has the ability to run the numbers and verify for themselves that everything is correct, honest participants are rewarded and bad actors face consequences. Whatever system is used to create more currency must absolutely come at a cost to protect against any monopolies arising from gaming the system.

Bitcoin solved this with distributed proof of work (PoW).

Second Layer: Distributed Network

Since Bitcoin was fairly launched with no malicious intent, we can be confident in building and expanding the network. If Bitcoin really is going to succeed, then it cannot be centralized like gold, fiat and altcoins.

Bitcoin is robust because of two reasons. One, the creator vanished long ago, never to be seen again. There is no central authority to arrest or have them use their influence to destroy the project. Two, the global distribution of the developers, economic nodes and miners. These three sets of stakeholders provide a check and balance against each other so no single party has control.

Der Gigi makes a fantastic analogy when he says Bitcoin is like ants. You can step on ants and kill their hill in one area, but you’ll never ever be able to kill all of the ants in the world, because of their massive numbers and distribution.

Bitcoin developers are the ones who work day and night to advance Bitcoin forward. These developers must build things that are in demand by the users, or else no one will use their software. It is not in developers’ best interests to attack the network because everything is out in the open; there is no way to sneakily attack Bitcoin because of how long the process takes. If a developer does try to attack Bitcoin, his or her reputation flies out the window and no one will use their software anymore. Their proposals to change the network are intensively reviewed by other devs during the process of submitting Bitcoin Improvement Proposals (BIPs). Anyone can become a Bitcoin developer, and there are developers spread all around the world.

Neither the miners or nodes have complete control of the network. The miners slowly write transactions into the ledger and mint new currency. Nodes verify the transactions on the blockchain quickly and efficiently, but cannot issue new currency. Miners have to follow the rules that the nodes set forth which may only change if individual node operators choose to run new software.

Network participants must prioritize keeping Bitcoin decentralized. The more distributed it is, the more censorship resistant it is. The more censorship resistant it is, the better it can defend itself from nation states and others from controlling the network. Good news for Bitcoin, the network is growing strong. In January of this year, the amount of full nodes hit a new all time high of 11,558 according to bitnodes.io.

To whoever’s thinking “Bitcoin will fail when governments 51 percent attack the blockchain,” I could write about this, but for the sake of both my time and yours, here’s a quick two-minute video explaining it:

Monetary Needs:

Third Layer: Store of Value

Bitcoin’s distributed network needed to be in place before everyone could start safely and securely storing their wealth. At the time of writing, this is the point of the pyramid I believe we are in.

Bitcoin is currently thriving in this aspect after recently reaching a total market cap of over $1 trillion, with trillions more poised to enter the market. Today, the world has a store of value crisis. There is about $80 trillion in cash around the world just sitting there, waiting to be put into an actual store of value. There is about $100 trillion globally in stocks that are owned by people who would rather save than take on the risk of investing. There is over $281 trillion in real estate but this has many flaws, such as the fact that it’s easy to tax, not portable and not liquid. Gold is an approximately$11 trillion dollar market cap, and all it is is a shiny rock. About $253 trillion exists in global debt. Bitcoin is only going to continue eating most, if not all, of this.

Image via https://medium.com/@markharvey_52065/store-of-value-a-case-for-3-million-bitcoin-6809877f3c3e

Twelve-plus years ago, Bitcoin introduced itself as a new competitor on the market. Ever since then, Bitcoin has been going through price discovery to figure out where it fits on the monetary food chain. Bitcoin has proven to be a fantastic store of value not just because it embraces all of the qualities that good money typically has (durability, portability, divisibility, uniformity, scarcity, acceptability and verifiability) but because it is the most liquid money, and has amassed powerful network effects. That is what makes it dominant.

Retail investors have used bitcoin as a savings technology for a long time, but in the past year institutions have joined us as well. The flow of institutions truly started last summer when MicroStrategy bought 0.1 percent of the total supply of bitcoin. Since then, we’ve seen MassMutual buy $100 million worth of bitcoin this past december, Marathon Patent Group buy $150 million worth of bitcoin in January, and even Tesla buy $1.5 billion worth of bitcoin in February. Institutions are gobbling up more and more bitcoin as they understand the benefits of adopting a Bitcoin standard.

Every single person in the world needs to be able to store their value in something that won’t leak their monetary energy over time. People in developed countries are forced to invest their fiat earnings into investments in hopes to keep/increase their purchasing power. People in developing countries don’t have that privilege, and are forced to store their wealth in USD to escape their faster-collapsing home national currency.

Bitcoin makes saving possible again. People can actually save their wealth and let it grow, without risk of devaluation over time via inflation. The 21 million hard cap with growing user adoption cements this. Everyone can now build and correctly allocate wealth to improve their quality of life.

Image via https://bitcoin.zorinaq.com/price/

Fourth Layer: Medium of Exchange

After Bitcoin has sucked in trillions upon trillions of dollars, the next level for Bitcoin to conquer would be to become convenient enough to use and pay for goods and services in your everyday life.

It is important to realize that the Bitcoin blockchain should be considered a settlement layer rather than a payment layer itself. In comparison to how slow the legacy financial system is at processing payments, Bitcoin’s main layer is a significant improvement. Transactions involving fiat are unacceptably slow. ACH transfers take about two to three days. Checks, debit cards and credit cards take up to 30 days to clear. Remember, when transacting in fiat, final settlement cannot even be performed since it is always exposed to counterparty risk of the issuer. So, sending large amounts of BTC for it to reach final settlement in 30 minutes or less is a huge upgrade in comparison. But we can scale higher on Bitcoin through the use of additional payment layers

The good thing about Bitcoin is, since it’s an open-source protocol, we can build solutions on top of it. A similar comparison can be made to the base layer of the legacy financial system, which couldn’t scale globally, so they added layers on top such as Square, Visa and Mastercard to help facilitate transactions. This made the network scalable for quick and cheap transactions. A similar idea has been brought to Bitcoin with the Lightning Network.

“The point is, seven transactions a second is fine. Because what it’s gonna be is, is it’s going to be Square cash, moving $182 million worth of bitcoin once per day. And then they’re going to do that settlement and they’re going to provide 37 million people with a Square cash account, and they’re gonna do 187 million transactions a day on their network. They’re like a second-level solution. They’re gonna do 180 million transactions a day for 37 million people and settle it with one transaction against the blockchain, and it’s gonna scale just fine. Bitcoin wins, Square wins, the customers win.” – Michael Saylor

Image via https://www.nichanank.com/blog/2019/1/5/bitcoin-scaling-lightning-network-micropayments

A great analogy for this is when Saylor was discussing George Lucas’s superhero stories. A superhero can have many exciting powers such as shooting lasers out of their eyes, flying, teleporting, super speed and more. But they all have one downfall; they’re easy to kill.

Now imagine a superhero that has no fancy powers like lasers or teleporting, but is unkillable. Slow and boring, nothing flashy. The unkillable superhero could pick up a gun and kill all of the other fancy superheroes while fending off attacks with ease. The unkillable superhero that can pick up new weapons resembles Bitcoin, and the flashy superhero that dies resembles altcoins.

In this analogy, what is Bitcoin’s gun? The gun is the layered solutions being built on top of Bitcoin, such as the Lightning Network. This results in a decentralized and unbreakable foundation on top of which scaling solutions can be built, making Bitcoin the most unstoppable monetary force the world has ever seen.

Scaling solutions such as Lightning will be the tool that allows Bitcoin to surpass this level of becoming a means of exchange. One could argue that transactions on the Lightning Network are final settlement, though others would argue it technically is not until you’ve confirmed it on the main chain. But Bitcoiners who use and build on Lightning increasingly talk about it as a final settlement.

Top Layer: Unit Of Account — Hyperbitcoinization

Once more and more individuals use BTC to save their wealth, merchants accept bitcoin, and institutions adopt it as their treasury reserve asset, we’re in the end game.

This is when everything in the world has been repriced in bitcoin in replacement of the U.S. dollar. This is a long-term process completed via price discovery, which has started since day one of Bitcoin’s existence, as mentioned earlier. In complete hyperbitcoinization, I highly doubt we’ll be referring to everyday items in their BTC terms (example: 0.00345727 BTC). Instead, we’ll just use satoshis to price things.

As the bitcoin black hole continues to suck in more wealth and more merchants start to accept bitcoin as payments for their goods and services, hyperbitcoinization is just around the corner.

Humans tend to converge on monetary media to save, invest and perform economic calculation. There only needs to be one, as using multiple currencies complicates economic calculation and delays the development toward a unified monetary system. Bitcoin achieves the unit of account (UoA) status for everyone globally while simultaneously becoming the most desirable asset to own. Which only encourages more people to continue using it as their store of value (Sov) and medium of exchange (MoE).

All five levels of this pyramid create a positive feedback loop that strengthens Bitcoin in every aspect.

Image via https://bitcointalk.org/index.php?topic=144911.0

Source: Bitcoin magazine