The Bitcoin Group, the American Original. For over the last ten seconds, the sharpest Satoshi's, the best Bitcoin's, the hardest cryptocurrency talk. We'd like to welcome our panelists. Be a good man from HASH online. Good evening everyone. Toned Bay is from Brave New Coin. Hi everyone, afternoon for me here in New York. I'm Thomas Hunt from the World Crypto Network. Moving on to issue one. Issue one, Coinbase Exchange rebrands as GDX and launches Ethereum trading. Seeking to highlight their transition from a Bitcoin only exchange to a global digital asset exchange, Coinbase Exchange changed their name to just that. GDX, the new company not to be confused with Coinbase, the Bitcoin Buying Service, will continue to operate as usual. Toned, Theo Goodman, your thoughts on this radical transition? Well, Ethereum is hot. The market cap is going through the roof, so everyone is trying to figure out how they can get in on the Ethereum game. Now I think it's really interesting that they chose Ethereum before Litecoin, even their Charlie Lee works for Coinbase or works for whatever you want to call it now. But that's because everyone is hot on Ethereum and nobody is sure about the future. You've got all the discussion about the block size and etc. and all that stress. Everybody wants to reduce their risk and this is what they've done. They said, okay, now we're going to be open to altcoins. We're not going to call them altcoins. We're going to call them digital asset exchange thingies and we're going to make it all sleek and nice. And basically Coinbase is now altcoin exchange. Toned, Theo Goodman. Toned, Theo Goodman. Yeah, I'm going to take it from a Coinbase perspective. They're clearly struggling with their core business, which was merchant processing because they realized that Bitcoin isn't really all that useful for merchants. I'll have time to figure that out. Also, just selling Bitcoin to regular users. They're also finding out that they're not getting the volume that they expected, mostly because they registered the value. They don't allow you to use Bitcoin if you use it in ways they don't like and they are very, very strict and they will shut down your account. They're basically no different than PayPal at all. It's kind of like the same transition. PayPal also started out as this rebel on the internet and then they realize, wait a minute, we don't want to get arrested. So we have to identify people and we have to be even more strict than the banks. So Coinbase went in that same direction as well. So they're not getting that much business. So they have to branch out. They didn't get $100 million invested in them. They had to branch out so they decided they thought they would be profitable to have a Bitcoin exchange and there was almost no value on their Bitcoin exchange because, again, Bitcoin isn't used like that. People don't want to register their Bitcoin. They don't want people to know that they are using Bitcoin. So again, Coinbase is desperate for profits. I don't think they're making much money at all. It's only a matter of time before they start laying off people if they haven't yet. And in order for them to make a little more profit, they're going with the latest hottest trading mechanism which happens to be Ethereum today next year. It could be something else. So it kind of makes sense. They're just trying to make some money in order and they're going to charge a fee for every trade. They'll probably have some action because unlike Bitcoin Ethereum, I believe it's still useless outside of this general trading. So they'll get a lot of volume out of it. They'll collect some fees. I don't think Coinbase is going to be around in a few years. So I don't see that much relevance in the story. I'll yield the time to more interesting things down the line. I saw this as a continuation of there. We're not a wallet strategy. When they announced a few weeks ago that they're not a wallet, they don't really want you to send money in and out of there often or use it as a wallet. This is a continuation and like Theo said, they're jumping on the Ethereum bandwagon. This is clearly a popular thing to do. Will they dilute themselves and become like Cripsy with hundreds of altcoins and pumps and dumps? Certainly, they have reputable projects now. What are you going to say, Tom? No, I was going to say there's a reason why they're out of wallet company anymore. Because no one was using their wallet. It was more like a play for beginners into Bitcoin, but for any significant volume, for anything useful done in Bitcoin, you have to be crazy to use Coinbase wallet. From the day Coinbase wallet launched, I was advising people not to download Coinbase wallet, not to use Coinbase wallet. I don't even like sending Bitcoin to people that have a Coinbase wallet because all they want to do is distract people. There's a reason why they shut it down. It takes absolutely no sense. That's not what Bitcoin is. They're just branching off into anything where they think they can make money and they have a little niche of specialization because they've ran an exchange even though it has minuscule volume because they ran an exchange and they have the backdrop for an exchange. They have some expertise in running an exchange, so they're just adding the next most liquid currency which happens to be Ethereum. I do wish that they would adopt their goal as an introduction to new Bitcoiners. Really have that content on their site. Maybe suggest places that people could spend Bitcoin, have a few demo videos about how to send Bitcoin back and forth. Really expand on what they are because they're kind of a plain bank. But they don't really get it like. There's no money in that. They would get us more users. But there's no money in it. Coinbase has investors. They have VC money. They're a four profit company. There's no money in educating people about Bitcoin. That's what we're trying to do with this podcast. There's no money in it which is due because we want to but they actually have investors to answer to it. And again, we'll get to some of this later on. Theo, do you want to jump in? I agree with you. And I think that they have from an outside perspective, they also had more trouble with people using it as a beginner's place so far because of the KYC and everything else. Is the duty of the user to read the terms and conditions? No doubt. But your average person may be heard about Bitcoin and decided, okay, I'm going to buy 100 bucks of Bitcoin or 200 or whatever. I'm going to send it over to my dice site or my sportsbook because I can't normally do it. And then they get hammered because they violated the terms and conditions for whatever reason, which they did violate it. But there's going to be a decent amount of new people that are into Bitcoin because it was advertised as something that you can use for that kind of thing. And then their first experience is one where they get banned from the first exchange that they tried. Maybe that's a good first experience. It is more of an introduction to legal Bitcoin than an introduction to illegal Bitcoin. And I think so many people are interested in the latter. That's a good point to you. Exit question, how many coins will GDAX have listed at the end of 2016? Theo Goodman. I'm going with three, like coin, Ethereum Bitcoin. Tone vase. I'll add one more to that. I'm sure there is a better and greater ether right on the verge of launching. So I think there'll be one more. Don't underestimate the height. So I think that the question is four coins, Bitcoin, like coin, Ethereum, and as I'm horrified to say, the Dow token issue two, issue two, leaderless blockchain based venture capital fund raises 100 million and counting. The Dow and ancient Chinese were gaining wealth, wealth, prince or prince who took a home this week as his acres and property centralized, autonomous organizations. The Dow raised more than $100 million with plans to invest the funds using a monetary voting system which has been described, but yet to be detailed. The Dow raised its funds in Ethereum, a smart contract on the Ethereum network. When Ethereum is sent to the contract, Dow tokens are created. The tokens allow for voting and can also be traded. Many believe there are some large returns on their Dow tokens if the projects funded by the Dow are successful and assuming that the Dow does not fail in some other way, perhaps legally. I ask you, tone vase, prognosticator of prognosticator seers of seers. Is this the investment of the lifetime, the model company of the future, or too much too soon? Oh, man. So apparently I've been living in like a cave. I've been busy with trading and earning season and option exploration. So I just started reading what the Dow is yesterday and holy shit. So to me, this is like butterfly labs and pay coin and neon B and triple lamp all rolled up into one. It's actually impressive. I'm impressed by this. I'm going to start with, there's two ways this will end. If the creators of the Dow are smart, they will just take all of the Ethereum, the moment the crowd fund ends, convert all of the Bitcoin and disappear. That would probably be the best lesson that those in Ethereum can learn. But they're not smart. So what they're going to do is they're actually going to invest all of this Ethereum into projects. They know nothing about thinking to decentralize the world in a way that makes no sense. And then all those projects will simply just waste all that money. And then everybody will lose money. So not even the creators of the Dow will get to keep $100 million worth of Bitcoin if they're smart. So no, it's completely ridiculous. From I, we don't have time. I can hour is not enough to describe all of the ridiculousness. Besides all the technical issues that are going to arise left and right, besides the regulatory issues that I've always been talking about, I mean, they're explaining. Why they think they're legal. They're legal because no matter what it looks like, they're not going to say that it's an investment. They're not going to say it's a VC fund. So it's everything they're not going to say that it is. And that makes it OK. Also, their view is because Ethereum created a token out of nothing sold at a year in advance. And then it happened to go up in price, unlike Paycoin. To me, Ethereum and Paycoin are exactly the same. The only difference is one went above the starting level and the other didn't. Other than that, to me, there is exactly the same. And Ethereum got away with it, so we can do it as well from a regulatory perspective. Now, that's also ridiculous. Also, people need to realize, not all of these Ethereum people have made money. And I'm happy that they made money. And they will lose this money, right? Just like early Bitcoiners made a lot of money. And then they lost it all between Mount Gocks and Butterfly Labs and Neo and D and Bitcoin savings and trust. And all these other awesome investment vehicles that we're going to provide them returns on their bitcoins and that are being a lesson in how you lose your Bitcoin. So this is a lesson in how you lose your Ethereum. But other than that, people have to realize that DCs, they lose money. That's what they do. I was in grad school studying financial engineering and it was the first economics course I ever took and we had a presentation and someone asked the question, so how come all these rich people just give their money to hedge funds so they can lose it for them? This was a real question, like a person. And here a really good answer like that. So what you do when you have a lot of money, rich people have a lot of money. They don't know what to do with that money and they think they can do better than the market. So they give this money to hedge funds and 90% of hedge funds will lose all your money. Or they give it to venture capitalists and 90% of venture capitalists will lose all their money. And venture capitalists that don't lose all their money will invest in projects and 90% of those projects will fail. It's just the way markets work. So now all of these Ethereum guys that made money and Ethereum now want to make better returns. So they're given it to this VC fund that has no experience in being a VC. They're also going to be funding projects that are completely not profitable. There is nothing profitable in the share economy. They're all going to lose all that money. Assuming it even gets to the point of being invested. Anyway, I can get into the details of how they can invest in their own projects and how you have 15-year-olds deciding on projects to invest because it's all Reddit users are now becoming investors. They get to choose what they invest in. You can just go on and on and on. I tweeted some of this out and maybe I'll just keep going on Twitter. Theo, what do I miss? Go for it. I don't think you missed. That's all pretty much right. It's just that from my point of view, it's kind of like in sports betting or in any kind of betting, doubling down. It's like a parlay. You win five and you bet five and you win five. You doubled your money. Instead of taking your five out, then you put 10 down into the next thing. That's basically what you explained. That's fine. Everyone can do what they want. I think that this is just going to create. The whole Dow thing is going to create a cycle of massive pump-and-dumps and people interested in funding projects that are interested in them. It's just like a big feedback loop. The theory and founders and investors make money and they take that and they invest in the Dow. Then they make projects that the Dow invests in and those people profit and then they just repeat the process over and over again. If they actually make money on the business itself, I don't know, or if they just make money on investing and the price of the token goes up or down and they can make money like that, then that's probably what's going to happen. I see this as a big cycle of pump-and-dumps that will probably happen and it's a kind of feedback loop. We are not talking about the tech that it's supposed to be decentralized crowdfunding. That's a good discussion to have if that's viable and how we can do it and if it makes sense. Like Ton said, I really doubt that the Dow is going to be better at picking companies than a VC investor. Are they going to really be able to pick better companies or be more successful in their picks than a VC company? I kind of doubt it, but I don't know. If everybody is, if it's just a feedback loop, then it could be profitable. Yeah, well, let me just jump back in here real quick. So I have to update my chart. So I might as well do a screen share. I put this together. I stole the background. I don't even know from who, so I don't know who to give credit to, but I kind of put a timescale on it and I applied it to Bitcoin and blockchain as the topic. I had to add the Dow. I had to add it in there. I mean, I do like the fact that you have like one honey pot to kind of teach all the Ethereum people what all of us Bitcoiners that have been in Bitcoin since pre mid 2013 have learned. So this is what, this is their mound gocks moment coming up. Their mound gocks, the OMB, all the things on the right side of the mound. So the Dow is right there towards the end there. So that's kind of how I see it. So I'm waiting, I'm waiting. It's imminent now. This is great. I definitely think it's, I hate to say this because it's going to freak out and bump out all my libertarian friends, but there's a reason that we have some kinds of regulation. If you look at this Ethereum business from the beginning, if you were an insider on Ethereum, you could have invested Bitcoin in the Ethereum project, gotten your Bitcoin back as Ethereum, rode the bump up, invested your Ethereum in the Dow project, get your Ethereum back, every time the Dow funds a project, they're going to be giving them Ethereum that they're going to have to sell. So they're creating artificial sell pressure on the Ethereum market. So both as the Dow is pumping it up now as people sell their Bitcoin by Ethereum, by Dow tokens, there's now a demand for Ethereum. The demand for Ethereum will also be pumped down whenever they fund a project. I agree with what Theo said, what Tone said, it's nine out of ten projects. If they can, they get to invest in ten projects, which are going to be chosen presumably by the crowd of 15-year-old redditors. But if one of these projects becomes Uber, then it's a huge success. Now if they're going to be able to get that money back to the token holders, I'm not sure. If the companies are even going to be profitable in that sense where there's extra money paid back to the token holders, I think the token holders may make some short-term profits on the Dow tokens. But the long-term future of this, I'm afraid of the regulatory environment which they capture this Dow thing. Yeah, that's not my fault. One thing you said, well, two things. First of all, all of these people programming for the shared economy, it's not going to be like Uber. They think Uber makes too much money because they're crazy. They think Uber makes too much money. So they want Uber to be free. They think Uber is terrible, it's too expensive, and there's too much momentum. So I don't understand what projects in the world, they think they're going to fund they're actually going to make money. I mean, I suppose I give them a 1% chance that somebody will make a successful company in the shared economy. It's not going to be profitable. All of these people, they're complete socialists. This is why they want the shared economy. There's no profit there to be made for start. That's one comment. It might have been a better project if it had been charity focused. If they donated 100 million, got in the tokens which could serve as a receipt, could serve as a tradable receipt, but not really for the purpose of a return on the tokens. So whoever is proof that I donated to the greatest charity project in the world, something like that. But then they won't make any money. The whole point of the Dow is just to get the money. You don't get to 10x, you want to 10x. What if the Dow hires a hitman? Who's responsible for that? I'm not even going to go that far. You don't even need the Dow for that. You can do that right on Ethereum and Auger. But Ethereum and Auger, what? You can't hire a hitman on Auger. Of course not. That might actually be a use case for Ethereum. But what was I going to say? The other thing I'm talking about is another thing to your point when you said that Ethereum insiders converted their Bitcoin to Ethereum. No, no, no. First of all, if they put in their Bitcoin in, they got Ethereum for the Bitcoin. But then they paid that Bitcoin back to themselves for working on the Ethereum project. So they actually invested nothing and got Ethereum. But they didn't even do that. According to Vitalik, they created 11 million Ether just for the Ethereum insiders. This is not even like conspiracy theory. Did they they said this? They just created them. They also could have put more money in. I agree with what you said. And also they could have put more in, which would have pumped it even more. Right. All right, moving on to it. All right. Exit question. How many successful profitable projects will the Dow fund this year? Tone vase. Oh, man. You've got to define profitable. I don't know what that means in the shared economy. I cannot answer this question. Well, let's go with successful. Not as profitable. Let's go with actually makes a project. If you hire them to make an app and they actually release an app. That's useful or that will publish something on the internet and claim that it's decentralized. I'm hoping for a kittens app, some kind of exploding kittens. I'm useful for me, probably zero, useful for people that are believers in Ethereum. Probably they'll probably come up with a dozen examples by end of year. All right. Theo Goodman. I think there'll be at least one successful one and that will be the Dow generator. So all of you programmers out there, you need to make a smart contract application thing. I can just put the title of my Dow in and I press a button and it just generates the code and I can just create a Dow at will. What I'm waiting for, what I'm waiting for, right? So the Dow is just one example of a decentralized VC fund. Even though I'm not legally allowed to say it's a VC fund because then I would acknowledge the fact that they're a VC fund. So I'm assuming there will be Dow competitors, right? So let's say there is the Dow and then there's Dow one and then there's Dow two and then there's Dow three and they all make a bunch of money. But then someone, they're like hedge funds, hedge fund one, two and three. But then someone decides each one individually is a little too risky because it can fail. So what we need is the Dow of the Dow's like fund of hedge funds, right? So when we have the Dow of the Dow's, then we would then it's something and then that would be my castle on the top of my mouth. I definitely think we'll see a Dow of all Dow's. I was already thinking that Coinbase is starting to look like the alphabet of Google's with their many smaller companies and we already have DCG. We've got a three-letter acronym running around. It's all mixing up. All right, ready to move to the next issue? Let's see. Here we go. Perse pre allows you to buy all of the latest gadgets with no hassles. Have you pre-ordered something recently? Did it arrive? You're one of the lucky ones. Many pre-order projects fail to ship and credit card protection only last 90 days. Shop at Perse pre will really use the power of escrow to hold your bitcoins so you always get a refund if the product never ships. Now you can buy anything with Bitcoin at purse.io. Issue three, blockchain launches and open sources, Thunder, an early implementation of the Lightning Network, which allows for free and instant Bitcoin transactions by using a simple system similar to incentivize network of the old children's game telephone. All pass your message along if you pay me, but I'll only get paid if the message gets delivered. Allowing users to transfer funds without settling to the Bitcoin network allows them to send a multitude of transactions before ever having to pay the miners fee. Deal, goodman. Your thoughts on this exciting announcement from blockchain? I think it's good that there is a competing system to the Lightning Network. Honestly, I have not looked behind all of the technical aspects and I haven't even really grasped all the technical aspects of the Lightning Network to be honest. I think it's good that there is something else out there that is pushing the pace and making it interesting that people have a choice to say, okay, well, it's the better solution, Lightning or Thunder. Maybe there will be something else. Maybe Tornado will come next and that will be a way. Tornado is like lightning and Thunder, but it mixes your coins because it's Tornado. I'm glad that somebody besides, I'm not against blockchain, but I'm glad that somebody besides them is working on something out there because even if blockchain is not trying to become board stream, a lot of people think it looks like that. This makes it, okay, look, there's more than one person working on this kind of scalability issue besides them. Let's take a look at what they're doing and let's see what it turns out to be. Sounds like some great plans. I look forward to Tornado watching. I'm going to play the contrary and again here. So I read it over. It sounds exactly like Lightning. They even named it Thunder. I have a few questions. I don't know about the technical details. Does it work across all wallets or only within blockchain. That info to blockchain. That info wallet. That's my first question. Now I am not... Only blockchain for now, probably. Right, so there's open source software and I guess they want to adopt it. It's like Theo said, it is a competitor to blockchain lighting. Here are my problems with what they've done. I know about the piss off a lot of people that I like and I'm friends with like Crystal Fathlas, Words and Blacks, blockchain.info and Roger Vair who I'm good friends with but for some reason we can't really agree on anything. Who is... I know as an investor in blockchain. That info everybody knows that and also Nick Carey who I've never actually met but I do like. I don't use blockchain.info wallet. The reason I use blockchain.info wallet and I haven't used it for about two years is because it's failed me too many times and it's failed me pretty badly. Also in the beginning they have this insane idea of emailing you your private key and that's how a lot of people lost Bitcoin. I have just stolen right out of their emails and I think we're going to get to that in the next story. I don't have much confidence at all for the engineers at blockchain. I have a lot of confidence in the engineers at block street. These guys released this already kind of quick and from my experience with their wallet I'm a little scared of how this is actually going to work. This is one of the reasons why I'm not very optimistic on it. I apologize to my friends that are associated with blockchain.info but I've got to be honest here. I am not too crazy and optimistic about this. I would leave something as delicate as this to the best engineers in the room which I believe are at block stream even if some people do think they are the boards or whatever. I'm sorry I'm not a Star Trek fan. I think this statement is going to bring in more hate comments that everything I've ever said about Ethereum. The term.io said I don't believe that's a block stream but I do understand why some people might believe that. I think it's an interesting project and it's great to see blockchain.info finally release something. One of the oldest companies in Bitcoin raised more than $30 million as pretty much released a wallet and a website. It's great to see they had a new version of the app recently. It's gotten a little bit better but it's great to see them release something. I think it's interesting. I agree with Theo. I like the competition. I like to see someone else out there with the idea. I can say while block stream is definitely working on an implementation of the Lightning network, the Lightning network guides them self, decline to join block stream and are starting their own company. There'll be at least three, perhaps, implementations of this very similar idea. I don't know if they'll be compatible or perhaps just work together on the same one but Theo's idea of tornado is looking more and more likely as we'll have many different micro-transaction pass it along type networks in the near future. We'll wait. Thomas, can you get back to that? Oh, I just learned something new. Wait, so Poon and I'll forget the other guy's name. Tad. Tadgen Poon. But that's their names. It's my understanding that they've raised VC and that they're going to be starting their own company. I don't know the name, Lightning Network Company. But yeah, it's my understanding block stream certainly wanted them. They're big fans of this project and as everyone in this space knows, they're kind of big fans of collecting the brains. Right. That's the best stream seems to have all the brains and I think that's why it freaks everyone out. They don't seem to have any kind of public relations or any kind of community reach out and they're hiring all the smart people. Right. I would think the smart people would also want some community and some public relations and not really not doing that. It's kind of unfortunate. I kind of would have really wanted them to stay with blockchain. But this also goes to my constant argument with people that they think all of the smart engineers of the blockchain are just sitting there in a conference room scheming to take over the Bitcoin world. No, I bet you they spent half their day arguing with each other over what needs to be done because it's pretty decentralized in there and they have different opinions just because they're in one room doesn't mean they all have the same ideas. So the fact that these guys got their own VC money and decided to start their own kind of proves it. I mean, all these things are going to be open code. They're all going to be open source. So I guess it's kind of good that they're competing. I just I'm just a little, you know, hesitant about the fact that blockchain that info released at first. I would have rather it come from the original creators or the guys at block stream. But again, I'm very biased based on my early experience with the blockchain that info was. And I used it for a while. I used it for over a year. And I was just I was I was so happy when other competitors came out and I I switched. I haven't looked back. But I know maybe I'll give them another try one of these days. But I'll leave it a death. And exit question. Thunder lightning or tornado. This project will be the project that helps Bitcoin scale. Theo Goodman. Tornado, of course, tornado. If you want to invest in tornado, then just check out the next Dow offering. It'll be combined with smart contracts, micro transactions in Bitcoin and lightning fast transactions that will make it viable to use Bitcoin worldwide to buy coffee. Tell him, phase. Man, you got some tough exit questions today, man. What happened? I have no idea. Theo wrote the exit questions. Oh, okay. There you go. I don't know. I got to go. I got to go with with the horse and the race. I've been backing for a while. I got to go with lightning. I think once lightning comes out, they will be thoroughly tested and good to go. But nothing is better than tornado. All right, moving on to issue four. Issue four, LinkedIn hacked. When LinkedIn was hacked in 2012, we didn't think the damage was so bad. Sure, 6.5 million passwords were stolen and users everywhere were asked to change their passwords. But now the damage is much worse. With 117 million passwords, more than 167 million individual records for sale on the web for a measly five bitcoins or $2,250 approximately. The passwords were stored in LinkedIn's database in SHA1 and were unsalted. That is to say they did not have any salt or random characters added to the end of the string to make the passwords harder to crack. One purchaser said that they were able to decode 90% of the passwords in 72 hours. The Bitcoin connection is obvious. Once again, Bitcoin is being used by criminals to sell their wares. Does this story do more damage to Bitcoin's already bad reputation? Help Bitcoin by once again spreading the word about its usefulness and the utilitarian value? Or is this yet another reminder that security across the board needs to be increased with harder encryption and procedures at every level, including the users who need to upgrade to password managers and to factor authentication. I actually love the fact that the story is last because it sums up everything that we talked about today. This is great. Over the last few weeks. There was a lot that you said there. Let's start with, yes, online security across the board needs to increase dramatically. It needs to increase from the company's perspective. Not necessarily from the user's perspective. The user should have an option of what it even wants to password or how strong it needs to be. The company needs to encrypt their data. They need to encrypt it not only from criminals. They need to encrypt it from the government that are usually bigger criminals than the criminals. That's an easy one. I'm not going to address that anymore. Security needs to go up or they need to be encrypted. What does it do for Bitcoin? I think it helps Bitcoin. Not only from the perspective that it throws the word Bitcoin over the place, it also highlights the usefulness of Bitcoin. Notice how it's not for sale for Ethereum. It clearly shows how Bitcoin is still useful. I don't even remember this happening in 2012. I don't think I changed my LinkedIn password in like 10 years. I do have a different LinkedIn now, my Bitcoin LinkedIn, which I created after 2012. The thing is, it doesn't matter. It's irrelevant. Here's what I learned. I also am different. I don't use password managers either. I need to start. I know. I have a different view on passwords than most people or two factors. My view is this. The only user name and password that is important in your life is the one that controls your Bitcoin. There's a world before Bitcoin. There's a world after Bitcoin. My world after Bitcoin, I don't give a shit what user name and password gets hacked. It's completely irrelevant. There is nothing important. There is nothing I have on the internet that is important. Not even my bank account. You know why? You call the bank and tell them that my password was hacked and my money comes back to me. That's what a bank is good for. My credit cards get stolen all the time. It's an annoyance to personally get credit card numbers. It happens all the time. Every year, at least one of my nine credit cards gets hacked or whatever it is. It doesn't matter. You just want it happens. You call them and you get it back. The only password that matters is your Bitcoin password because you're not going to get it back. In this case, who cares? This also brings me back to the blockchain.info story. Now, if your user name was your email and your password back in 2012 for your link then was the same password as your email password. You had a blockchain that info wallet, you're screwed. Because then they can get into your email account and they can get the private key to your Bitcoin wallet. Once again, the only password that matters is the one that controls your private key. Otherwise, who cares? Yeah, good. Well, it just goes to show that Bitcoin is like cash because if I want to sell something then I want cash on the internet then I need to use Bitcoin. LinkedIn, come on guys, you're supposed to be a network for professionals and you're not doing professional job with your security. That's a joke. Think of all the smart people on LinkedIn that would have gladly taken a job at LinkedIn doing security. You just type in, they should use their own platform. IT security specialist, type in, do your own data mining on your own platform and get someone qualified to do some basic seeding of the Shah Wan or whatever you need to do to make it secure. So LinkedIn, come on, use your own platform. I'm going to the second with what Theo said and say that LinkedIn should really get two factor authentication. All of the big factor authentication. I like, I'm not against two factor authentication but I think that it's a little bit, I think Bitcoin people are spoiled and used to a few standards that other people aren't. So I think if LinkedIn did that their customer base would die because most people are not willing to do go through all that trouble. They're just not going to do it. They're happy with maybe an email to FAA or something like that and there's money on LinkedIn. I'm not putting Bitcoin on my LinkedIn account or my credit card data might be on there. I don't know but I'm not really putting cash on there so I don't care about that but Bitcoin people are used to instant withdraws and to FAA and if they don't have that they won't trust anything. I think your reputation is more valuable than that. I think that if I could properly hack LinkedIn one day have all these big people suddenly recommend me I could get a job the next day based upon the hack. So I think that they need two factor authentication. I think that everyone needs to get used to it and get excited by it. When I used to read let me romance you for a second. Let's get excited. I used to read Tom Clancy books in the 90s and the Tom Clancy books they talk about the CI agents and they had these one time pads. Every day they'd flip the day and get the new codes and they'd put the codes in and that's how they'd communicate. Well now thanks to the internet and all these hackers in China and America and the whole world all these hackers we all get to pretend that we're CI agents and have one time pads on our phone and you get to enter the little code and this means that if your password's terrible it's not that important because you have two of FAA. If you don't have two of FAA you only have a password and that's all you have. And I want to second what Tom said about the only important password. The other important password is the password to your last pass or one pass account which I'm saying that you should all go get now. Password Managers. Okay, I don't like the idea on its face. Put all your passwords in one honey pot and then lock them up with one password and hope that everything goes well. Alright, that's scary. I avoided it for a long time. I like being independent too but the reality is my piece of paper with the passwords written down on it. Your memory of the passwords it's not going to work. The passwords I have now are complete Googly Gawk. U3 5N7 F or 3. That's because I use a password manager. Because of that 99% of my accounts are now Googly Gawk passwords that I could change every month if I wanted to. Password Managers. Two-factor authentication. Take control of your own accounts. You can buy a last pass is like 20 bucks for a year or something. One pass is also very good. They tell me password managers. Two-factor authentication. Authy is also pretty good. Alright, I have done with that. Exit question. If you were a hacker, how would you sell your stolen data, tone Vaze? I'd sell it for Bitcoin but if I had a 117 million of them I would ask for way more than five Bitcoins. Somebody is getting that database cheap. Of course they can resell it in a number of times. It's not a Bitcoin that they're selling. They're selling Excel spreadsheet so they can just keep reselling it. So I guess there could be good money to be made there. If only we could put this spreadsheet with the passwords on the blockchain. That would have secured it. We could have secured it with blockchain and Ethereum and Dow tokens. Theo Goodman. Well of course I would sell it for Dow tokens. Now I'm just joking. Of course Bitcoin is the choice. It just shows another utility. Yeah, okay. They're criminals. They stole passwords and all that. But if it was something physical then they would be using US dollars. And if it's something on the internet then people use Bitcoin. Bitcoin is like cash. It's money for all things like buying drugs and buying hookers and buying hackers. If your currency can't buy drugs with hookers and hackers. What good is it? That's why Bitcoin's currency. And Ray used to say something like that, maybe without the hookers. Moving on to predictions or a story of the week. Tom Vays, do you have a prediction or a story of the week? Oh man. Before I do that, I just want to apologize to my friends and I've blocked chain that info like Roger Fair and Nick Kerry and Chris the Fatless. Maybe a few more. I'm forgetting that are affiliated with them. They're going to show madame after this episode. As usual, I'm never prepared for this section. My prediction is pretty simple. I mean, the Dow is going to be a complete disaster. This is like children creating a VC fund for other children. Which is fun. They're using baseball cards. And even then, they would regret it if this was 1960s. And you have like Mickey Mantle, Ricky cards. And then you play in VC. What them when they were worthless at the time. And then you never know what they'd become. So that's going to be the lesson for Ethereum. I can't wait. I know it's going to come later than sooner. Like most things in these kinds of predictions, even though things in Bitcoin happen quick. But we'll see. That's my prediction long term. Keep an eye on that Dow. That's going to be, I try not to say I told you so, but I'm going to enjoy that one. Theo, good. My story of the week might have even been older than a week. But I'm still going to go with it is in the realm of sports betting and casino and gambling. The website, Bodiva and Bowdog, which are really well known sports books, Bowdog is based out of Canada and is known by a lot of US users that are not allowed to use sports betting in the US. So what they're going to do, not only do they accept Bitcoin, and that was news recently. But what's going to happen on June 1st is that the affiliates that earn money from promoting them are going to be able to only be paid out in Bitcoin. So if you're an affiliate and you earn money from promoting their sports book, then the only way for you to get paid out is going to be Bitcoin. And that's a very interesting development. So that means there's going to be a lot of people that are going to have Bitcoin suddenly are going to want to cash out, or they're going to want to spend it on something, or they're going to want to do something. They're going to be figuring out what to do with this Bitcoin. And I don't know where bettingpartners.com is the affiliate manager site. So they also do affiliate management for other websites. But I don't know where they're sourcing their Bitcoins, or if they just have a bunch of them, if they're going to buy them as needed. So I think that's pretty interesting. I'm on there. I'm on bettingpartners.com right now. And it looks like they do have some good tutorials, kind of like what you were talking about, Thomas, about how to do the wallet. And they are suggesting using Kraken, and they do have blockchain info too, because funny enough, a lot of the sports books that accept that coin have this, everyone is using Coinbase and then blockchain info and then to the sports book. And all the tutorials have that in them. But this place is even going to step further, and they're like, no, no, no, no, no, do use Kraken. And then even if at Kraken, you then send it to blockchain info. And then from there, you send it to your sports book and the other way. The problem, just a quick thing, the problem with that is that when the people actually win, and they want to cash out at Coinbase, and Coinbase is like, hey, how do you have two times the Bitcoin that you have when you start it? And then they're all the questions start, and then they get banned. What you know is part of the terms and conditions and all that stuff, sure enough they have to comply. But therein lies the problem. And so a lot of people are slowly going to learn about Bitcoin, how to cash it out, what do I do? Oh no, why is my Kraken account blocked? Why is my Coinbase account blocked? And there are going to be people that learn the good way and people that learn the hard way. All right, and my story of the week this week is, double down. Double down on your security, get to FAA, get a password manager. Do it. Try it. You've been putting it off for too long. Your passwords are probably bad. You're probably using the same password at multiple sites. Let's change them all to GobliGook. And for those of you who have password managers like myself, it's time to change and update your passwords. You have some old ones that are crap. Even if they're GobliGook, they could be updated. So let's all change our passwords. Let's all have better security. Put to FAA on all your Bitcoin accounts. And while I'm doubling down, I'm going to double down on the add to everyone should check out purse pre. You can get some cool drones, crazy new stuff with Bitcoin or Ethereum through shape shift if you're into that sort of thing. And you can pre-order now without the hassle. If it doesn't ship, you just go to purse. You cancel it. We have your Bitcoin. You cancel with us. We cancel with them. So all the hassle is gone from pre-ordering at purse pre, at purse.io. So double down, double plug. Anything else? You guys ready to close it out for today? Yeah, no. That's a great story, Theo. My Windows machine kept crashing on me. That was great. I heard about it. I remember Bulldog from back in the day. I mean, they've been around for a while. They're not new. They have a history. They have a reputation. I think that's big. And if they know what Bitcoin is, it's only a matter of time because they start accepting it for payments, for betting. I mean, they have the resources. And what Thomas was saying, Coinbase should teach people how to use Bitcoin. There's no profit in that. For Bulldog, it makes perfect sense to teach people how to use Bitcoin because they save money by not having to deal with the US dollars. So they want everyone to be comfortable with Bitcoin, so they can switch the people funding their deposits and Bitcoin. So these are the kinds of companies that you should rely on to teach you how to properly use Bitcoin. I think it's great as the perfect story of the week. Yeah, I have a prediction. I'm doubling down on the predictions this week, because my prediction is that all the fantasy football and the fantasy pick companies, they're going to take Bitcoin eventually, too. It's really interesting because they're more mainstream than sports betting right now, but slowly they're having problems with payment providers. And I have tweeted one or two of them just because I saw that they were doing a talk about payment providers. And the basic comment is, yeah, that's cool, but it's just not mainstream enough yet. But I think if more places like sportsbooks accepted, then eventually the bigger places will accept it, too. No, football season starts in late August, I think. And August of November, I mean, that's when Bitcoin betting is really going to shine. And then I say, going into December, that's when people are going to realize the tax advantages of Bitcoin. And I can see that becoming the team in December, going into the following year. But I'm not going to get into that for legal reasons. I do think that there's a force prediction here. Will Fandool, or one of these single week fantasy sites, which are essentially kind of betting on fantasy football in a single week format, will one of them accept Bitcoin? Last year, they both famously had trouble with Visa, lost their contracts with the NFL. Will one of them accept Bitcoin? Theo Goodman. Yeah, I think one of them will. Yeah, no, they will. Maybe not this football season because there may not be enough Bitcoin users for them to overhaul their system. They might just stick to the European kind. They might just stay out of the US where they have enough of a user base, not to have to overhaul the new technology. But perhaps for next football season, when Bitcoin is more popular and there are some more users of Bitcoin, it's only a matter of time. Excellent. And we're also out of time. Until next time. Bye, bye. Bye, everyone.