The Bitcoin Group, the American original. For over the last 10 seconds, the sharpest Satoshi's, the best Bitcoin's, the hardest cryptocurrency talk. We'd like to welcome our panelists, Adam Meister from the Bitcoin Meister Show. Hello. Andy Hoffman from Crypto Gold Central. Hey there guys, I'm sure there's a lot of good things to talk about today. Gabriel D. Vaughan from Future Rent. It is once again an honor to be with you Bitcoin and posterity. And I'm Thomas Hunt from the World Crypto Network, moving on to issue one. Bitcoin exchanges hacked. South Korean exchange bit thumb was hacked Wednesday during a security update with the exchange losing more than 30 million dollars in cryptocurrency. Meanwhile, Italian exchange bit grail was hacked for more than $170 million dollars and has been seized by the Italian government. Adam Meister, I ask you, why do people keep holding their money in exchanges and why do they keep it designing exchanges around such a hackable model? Well, because people are absolutely greedy and ignorant. They're trying to trade their Bitcoin for all these other altcoins. They think they're going to make all this money. They think they're big time traders. They haven't done any research into what cryptocurrency even is and they have no idea what control your private key means. They don't care. They're just in it for some quick hits and they're getting punished. I was actually in South Korea and I was told that like 99% of the people there, maybe 95% I don't know. They all keep their money. They all keep their cryptocurrencies at exchanges. They are all into day trading. They have no idea what control your private key is all about. People are going to have to learn the hard way. There are also a lot of newbies in this space that we're not around as recently as 2016 when Bitfinix was hacked or when BTC-E was hacked and they don't listen to shows like this where we say over and over again, it's happened before, it's going to happen again. They rather just like talk about nonsense in the chat with each other about like a spacecraft landing on the middle of Earth or something. I don't know. But seriously, it is going to happen again. I haven't heard about the Italian one yet but that's bad too. The only weird thing about South Korean one is that, what they just find the same amount of money around the same amount of money for breaking some rule by the South Korean government, I heard that too. So maybe they just stole all the money. It doesn't really matter. If you're storing your Bitcoin on an exchange, it's not in your Bitcoin anymore. So they can steal it or they can be hacked. It doesn't matter. You've given up control. Don't be greedy people. Don't sit your Bitcoin or whatever over on exchange just because you think you're going to sell it in a second or two and make some huge profit. Just learn how to buy and hold and get a treasurer stored at your house. That's it. It's much better to store your own private keys. And the Italian exchange was hacked and now it's been seized by the government as part of a court case. So we're keeping an eye on that one as well. Be sure to pound that like button. Andy Hoffman. Go ahead. Yes. Well, the funny thing is that there has been hacks all throughout the two year bull market. I mean, there's nothing novel and new about, oh, exchange was hacked. Now, other than that, the price has been falling. So people say, look, it's a bad thing. But I mean, as Adam was talking about 2016, but plenty in 2017, just people weren't paying attention. They didn't care. But now they're just seizing on any news as bad news. And again, why would you keep your crypto at exchanges? It is pretty alarming that BitThumb, which is the largest one in South Korea, can't figure out this security. It just shows you why it's so dangerous to put your coins on exchanges. And the thing is that most of the things that are getting hacked are things that can't be held on trade zords. I really don't think that most of these have any can do with Bitcoin. I think they're all coins in which you cannot put it on a trade zord. So you're doubling your risk by investing in these second tier cryptocurrencies with thirds. And there's no choice but to leave them on these exchanges. And clearly, even the biggest exchanges like BitThumb are no safer than the small ones. And the thing is, I saw your exit question once and next one going to be hacked. There's like hundreds and hundreds of exchanges. They'll continue to be hacked until people realize that they're not, that they're stupid to keep their, their, their crypto on them. And it's worth noting that there's no reason for people not to know the history on this. You can go back and read about old Bitcoin exchanges. We made videos during that time. You can go back and watch the videos and you can learn how many exchanges have died. How many altcoins have died? This has all happened before. That's why people get upset and they call us maximalists or whatever. We've seen it before. We've seen your altcoin die a thousand times. We're bored with it. That's why we're in the Bitcoin. But you can make your own choice and just give it some time. Give it some time. Gabriel, divine. Yeah. You know, I didn't hear about that spacecraft, Adam. I'd really like to know some more about that. That's much more interesting than this hack situation. Yeah, I mean, like you guys said, we've seen a lot of hacks. They're not a reflection on Bitcoin or even altcoins technically speaking in the sense, well indirectly, let's say. This is a relatively new sector. The infrastructure and ecosystem is still being built out. And therefore, security is especially difficult. Not only are there very few tools out there for these companies to leverage in order to protect the many assets under their purview. There's also a lack of expertise. So even if there were the tools, it would still be very, very challenging to impossible to hire the required personnel in order to secure these assets. Not only is there expertise rare and in demand, but also trustworthiness, right? You could have the best CSO in the world, but if he's a crook, he'll rip you off. So you have to have people that know what they're doing and are extremely trustworthy. These are absolute honey pots in the sense, well, I guess a honey pot is when you're trying to catch somebody. These are centralized gold mines. These are like pots at the end of the rainbow. And there's a big fat rainbow just arching over that horizon and it's going right to that one hill and everybody can see it. All the leprechauns go running. These are the hackers online. They're like, oh, well, there's bit flyer. Their office is in Seoul, OK? So who can we call to get the keys for this and then who can we kidnap and threaten to kill as anti that he lives with? And then who can we go? And then this other one in Italy, their server software hasn't been updated. So let's just break in their backdoor there we already know about it, et cetera, et cetera. So Jeremy Sager's got the honey potty emoji on the chat. I appreciate that. That's awesome. Honey potty emoji. I love it. Anyways, these are centralized institutions. And Thomas' question is timely but not fair. So in the sense that a decentralized alternative is the obvious solution. However, creating it as with all decentralized systems is a long process with many people to be involved. And it takes a long time to build up the user base and the liquidity on something like that. However, I encourage all of our listeners to go and research the BISC decentralized exchange BISQ. It's already functioning. It's terrific. They have an escrow. It doesn't have that much liquidity but it's got enough to buy and sell Bitcoin. You do have to already hold a little bitcoins so you can't go in there as a complete newb. And I wouldn't recommend that anyways. But terrific pieces of software runs on the desktop, totally decentralized, uses Tor, totally very private. Only your trading partner will know your identity if you trade Fiat back and forth. It's really, really cool. And they also do all coins back and forth. And it runs on top of the Bitcoin blockchain. And they are currently doing a DAO. They're going to be issuing tokens based on colored Bitcoin. And they're going to have voting. They're going to have, it's going to be very interesting. It's a very interesting experiment. And well, it's not a for-profit company. This is a totally grassroots thing. This is not a company doing this at all. They have no skin in the game. There's no way for them to profit. And they're not going to be issuing tons of tokens out of nowhere. They're going to be maybe issuing them to some of the developers but not to themselves. There's no company. There's no Ethereum, pre-mind, and anything like that. So the reason I bring it up specifically is because even though it's currently slow-ish, it works on the Bitcoin blockchain with lightning and lightning support of multi-sig coming up and various smart contract structures, you will eventually be able to do fast trades and other market type of mechanism that the current markets are doing now. Except it'll be, I think, a little bit more fair because it'll be decentralized. So I look forward to that day. But until then, we're stuck with these centralized exchanges. And if you hold your coins on there, you know what's going to happen. It's also worth noting that all of these exchanges are black boxes. We don't know what's going on on the inside. That's why we always say something like, it could have been hacked by the hackers. It could have been hacked by the coders. It could have been hacked by the people who owned the exchange. It could have been hacked by anybody. So we're always talking about that. Moving on to the exit question. How long will it be until another Bitcoin exchange is hacked? Six weeks, six months, or longer? Adam Meister. Six hours. Andy Hoffman. Can you top that? Well, there's going to be a lot more than before because with less profits for the exchanges, there's going to be less money to invest in security. So there'll be more and more. And the weaker exchanges will go away and the stronger ones will survive. Gabriel, divine. I think at the current rate, six weeks sounds like probably where we're already at on average. The answer is six months, it can't happen too often. It ruins the fun. Moving on to issue two. Unsafe and dirty. Ascathing report on Bitcoin was released this week by the Switzerland-based Bank for International Settlements. The BIS report claimed that Bitcoin would destroy the entire internet, use far too much power, and cost $57 a transaction to buy a cup of coffee. Starting Bitcoin, according to the central bank, could lead to a complete loss of value. However, the underlying technical structure of the blockchain could have promised in other applications, such as the settlement of financial transactions. Andy Hoffman, I ask you, is the BIS report correct? I thought I was done with the Bank of International Settlements after all the years following it in gold. It's the central bank, central bank. It's ultimately the biggest manipulator of markets in the entire world. They are as bad as people as you're going to find on the planet. Their job is to attack anything that threatens their cozy little status quo. They won't win in Bitcoin's case, but they're always doing what they've always done. The tax foreign currencies, the tax gold, the tax anything that they don't like. They have no idea how the stuff works. The Andy already knew what BIS stood for before we started the topic. Check that out. Gabriel, divine. BISC, the decentralized exchange, doesn't like Bitcoin all of a sudden. I don't understand. The Bank for International Settlements, or Bank of International Settlement, as Andy rightly points out, are criminals. They're fraudsters. They're a disgusting class of predatory vermin that, as Andy also pointed out, reside at the top of the pyramid and just draw wealth from everybody and give it out to their friends. It's a truly disgusting model that causes, it's not just a matter of stealing money, but it causes incredibly damaging knock-on effects. It funds wars. It creates these conflicts of which they fund both sides. It's just such a nefarious history. It's truly disgusting. As such, to hear the things that they say about Bitcoin is absolutely no surprise at all. Bitcoin threatens to eat their lunch. One would expect that they would spread the severe uncertainty and doubt that is completely based on lies. Of course, they bring up this blockchain bullshit. It's been four years. All we've seen is pilot programs because the blockchain is only useful to create a decentralized censorship-resistant network of value transfer. It's essentially a linked list. It's a late 80s, early 90s tech that has been in use where it's useful since then. They might find a couple areas where they can save 3, 4% on something here and there, the banking industry by adopting these linked lists, but it has absolutely nothing to do with Bitcoin. It certainly doesn't take advantage of the rest of Bitcoin's infrastructure, which is exactly what makes it interesting and why the BIS is actually releasing this report on it. Regarding the internet traffic, no way, fucking Netflix will always be way more of a strain on internet traffic than Bitcoin ever would be, first of all. Second of all, the power usage gave me a break. I bet you the offices of the BIS and their staff probably use as much as Bitcoin. It's totally ridiculous. The banking industry and the world, all their clients, essentially, these central banks are consortia of banks, and the BIS is the central office of all the different central banks. All that giant infrastructure uses so much more. There isn't even a study on it because people know how totally ridiculous it is. All those literally millions of employees going back and forth to this place and providing services that Bitcoin will do better. It's completely species. And lastly, this idea of $57 transactions for coffee. The lightning network is already live on main network, about $200,000 with a Bitcoin. It's obviously still early days and it is going to be a little while before that's totally functional. But you'll be able to trade for way cheaper than anything that you see in credit cards now. Certainly. It's going to be a massive, massive change for merchants that have a very small bottom line and the two and three percent fees that they pay on transactions are crushing for them. Lastly, I think we will probably see a $57 fees on the blockchain within 10 years and that will be normal and nobody will move less than what we would think of today as $1,000 or $2,000 because it will be too expensive. They'll use lightning and other higher level layers of the ecosystem to move smaller amounts. Just like nobody uses Fed wire to pay for coffee, nobody will use the Bitcoin blockchain and that's how it should be. It's far, far more secure than any of the fraud bullshit that the BIS is involved with. I agree, Gabriel, the only thing we can do to protect the Internet is to ban Netflix. We must ban Netflix immediately and the blockchain may be a one trick pony, but what a trick. Adam Meister, your thoughts on this topic? Well, I wonder how many people over at the BIS even have heard of the lightning network? They're making these very broad general statements when Bitcoin is down. I think we should consider this a bullish event because you only hit the king when it's down in price and they obviously feel threatened by it. If they've gone to these lengths to make such a statement, such a wild statement about breaking the Internet, this is the fight of conspiracy theorists that talk about Martians landing in the Martians land of the other day, Gabriel. Did Martians landing is way more likely than Bitcoin coffee transactions costing a lot? You're right, actually. It is more likely for extraterrestrials to visit this planet than the Bitcoin breaking the Internet. I mean, this is... We shouldn't worry too much about it because unfortunately, there are all these fudsters out there that love to jump on things like this and amplify it. What if two will pass? We've all been in this game for a long time. We've heard all sorts of entities come out and say similar things. It doesn't end the world. It doesn't kill Bitcoin. Bitcoin's died 200 times. I guess this is another death or something like that. I'm not going to put these guys on any pedestal or anything, but it'll be forgotten in a few weeks until some other agency says something just as crazy. I can only predict what will be next. Maybe from breaking through the Internet, what's going to be the next move? Otherwise, maybe there are also some of the Swiss guys over there. Maybe they're threatened by Bitcoin because Bitcoin is a Swiss bank account in your pocket. Maybe some of the things over there, their Swiss base feel threatened. I don't know. Swiss bank in your pocket. Yes, Swiss bank account. Yes, exactly. The entire bank moving on to the exit question. Banks are just waiting until the low points in the Bitcoin charts to release their best fund or it's all a coincidence. Andy Hoffman are the banks directly fighting Bitcoin. They are definitely doing so indirectly, but again, they have to, like you said, they have to pick their battles, pick the timing because I mean like when JP Morgan or J.M. Jamie Diamond said that it's too Romania. He picked it during a bull market and he looks stupid. So now it's much easier to pile on now. But the fact is these banks, for the most part, have no idea what Bitcoin is. They know that it's a threat to them and they attack it. Like most people attack ignorantly something that threatens them. I don't worry about anything to pick the Bank of International settlement says. Like I said, I didn't participate much in this because I'm just so tired of talking about them from my 15 years in gold. It's like they're bad people that have an interest in the in the Fiat currency surviving. And you know, and you know, their ignorance comes out in spades now and you know, people are latching on to it with the mainstream. Gabriel D. Vaan. Only a coward kicks somebody smaller than them while they're down. That's just low. No surprise coming from these bastards. You wouldn't hit a guy with glasses, would you? Adam Vyster. I don't think all the banks are threatened, but I do think ones that sort of understand Bitcoin and don't want to evolve that they do use timing as they think about the timing of their press releases. So I think we will, if Bitcoin's price stays down, we'll see more of these mainstream entities sending out a but press releases, but just ignore them. That reminds me, do you know the secret to comedy? No. Timing. Timing. Timing. Moving on to the next issue. Did you know the World Crypto Network has a podcast and you can get more than the World Crypto Network. You can get JW Weatherman and the Adam Meister Show and much, much more. Subscribe to the World Crypto Network podcast on iTunes today. Moving on to issue three, Tether Review. Tether, the USD backed cryptocurrency, which was the cause of so much uproar last week after a 66-page report from the University of Texas claimed that market manipulation may have caused the 2017 price rise. Now Tether claims that their assets are complete and intact, but cannot be audited because no qualified accountants exist. Therefore, they have released a report by a law firm that vouches for their deposits on the date of June 1st and the date of June 1st. Gabriel D. Vine is the Tether issue over and settled. Are you satisfied with the results of the Tether Review? Tether Review. Well, that's a hard question to answer. You know, nobody knows what's going on. Then the lawyers involved in this situation, the FSS law firm in, I believe, DC, is Friedman LLP, excuse me, the FSS is something else. Friedman LLP don't even, they specifically say that they're going off of the information that they got from Tether themselves and their lawyers. The reason why I think Mark Oxtin is an excellent writer and editor, he's the editor of Kondaske, author of this article. His tweets are pretty interesting, but Kondas sometimes veers off into some fraudulent shady shit, so I kind of stop following him, but he's pretty cool. Mark Oxtin, he's a traditional financial journalist and editor used to be an American banker, used to edit American banker. This is the Friedman LLP specifically said we're not auditors, and the reason they said that is because if you say, hi, I'm the auditor, that means that you are legally on the hook for anything you say, and you have to, if somebody challenges you, you've got to prove in court that you did do diligence to get that information. So, it's understandable that they wouldn't say that, and it's also understandable that Tether can't find a damn auditor because it's such a risky thing to do, and super expensive. To Tom Sennay before the show, we're actually speaking about Tether's business model, Tether's profit model, and we determine that the main, obviously the main function of Tether is to provide BitFinex and these other, the ecosystem with some fiat liquidity that isn't subject to the laws of moving fiat around, so they can move it around real quick, but also they're going to be earning interest. So they don't charge anybody to buy these Tethers, they don't charge anybody for the service, but they're going to be earning interest. They got two and a half billion of Tether out there. So if they're actually, it's in their, in my opinion, it's in their interest to hold them, to actually do it because they are getting paid for the Tethers. The money's there to begin with. So it's not like they're issuing them out of nothing. People are paying them Bitcoin or another alt, then they sell that and then give them Tether for it, and then they put the USD in their bank account, supposedly. Now of course, it's real easy to just skip that last step and keep all of it, but on the other hand, you don't earn the interest that way. Two and a half billion, if your business is only ten, twenty, fifty million, their interest on two and a half billion is pretty awesome, I'm sure. So that's actually an argument in favor of them holding the balances, but nobody really knows, nobody can know. It's a murky situation. I don't think it's a big deal. I don't think that it's really affecting the price of Bitcoin all that much. It's certainly not responsible for massive, you know, entire, like, you know, the ten X over the year or anything like that, like we've seen. Maybe a little, a little bit at the end of the spike, maybe they issued some extra, but according to the audit or not audit, but according to the announcement, they actually had an extra ten million on the side, you know, buffer. So yeah, we'll see what happens. I don't think it's a big deal, either way. It's just, you know, they're just trying to get around bullshit loss. It seems Tether was aptly named as something you would tie to something else to hold it down. Another good name might have been anchor Adam. Well, it's this stable coin thing, which I don't think has a future because this whole fiat thing where it is this giant, I mean, Bitcoin will be so stable that Bitcoin's volatility is a function of the market size. It's the same market size or market cap, you might say, as a large cap stock and has the same approximate volatility as a large cap stock. Totally a function of the market size because there's that much liquidity out there so people can push around the price that much. Once it gets bigger, it'll be less volatile and nobody will be talking about stable coins. All coins is a useless stupid dream. I think the stable coin they used was that old Easter Island coin, that big round giant one with the hole in the middle. Very difficult to carry around, very difficult stable coin. Yep, sounds. Adam Meister. Yeah, you're bringing up a stable coin. So that's like the alt coin flavor of the month of the future. It's a catch phrase that a lot of people have been spouting out lately just like blockchain. And I agree with Gabriel on his view of what a stable coin is. Don't mess with it, don't worry about it. And again, this is again about personal responsibility here, people. There are third parties making accusations about third parties who've confirmed things about third parties. This tether story has kind of jumped the shark here for me. The price is no longer $20,000 for Bitcoin. If it boosted it, I don't know. It doesn't matter. If you're playing around with tether, that means like trading and your on these exchanges. If tether also crashes and it is proven to be a fraud, well, that was your fault for keeping on your money in tether because you didn't want to stay in Bitcoin because it wasn't stable enough for you. So for me, it, great. The pseudo auditor said it's cool. That's cool with me. I'm not a trader. I advise people not to play around with tether whatsoever, just hold your Bitcoin and pound that like button. And if you can't trust a lawyer, who can you trust? Andy Hoffman. Right. Well, when we could go on the show, we talked about the tether report from the anonymous crypto medication. Again, this is an anonymous guy writing about all these doing some journalism, but you don't know what his angle is and you don't know how much of it is true. And my answer was that I never really paid much attention to tether because I don't think it matters to Bitcoin. But when I read that report, I said, wow, that is ugly. I'm sure some of it is true. There's no doubt that Bitfinex is as big of a scam as anything out there. And I'm not even saying the people that they tried to implicate, they tried to implicate Roger Bear and Erinfor. He doesn't even sound like they really have anything to do with it. It really sounds more like the whole Bitfinex thing is very scammy. And tether is very scammy. And even this so-called audit isn't a real audit. And as we talk about, it's a black box. No one has any idea what really goes on there. But that said, they did have a prominent law firm come out and say, yes, they have the money that they say they have, which is fine with me. I don't believe for a second that tether made the price go up or that tether has made the price go down. But what I do believe is that it's not really as big of a story as people like to make it out to be. And B, like what Gabriel says, the whole concept of the stablecoin thing is just it's so bastardizing, taking dollars and turning them into something far worse and riskier. I can't imagine why anyone would want to hold them or why anyone thinks there's some big future in holding them in this. At some point, by the way, the tax authorities are going to comment and say, what are you kidding me? You think you're going to avoid taxes by putting it in this instead of dollars? I think the whole stablecoin thing is going to go away in time. And I think the whole tether thing is going to go away in time because it really has nothing to do with Bitcoin. But what it does have to do in the air term is altcoins. And it's going to cause a dramatic reduction in liquidity if people don't believe that tether is above board, which it may or may not be. And again, for people who are just hiling Bitcoin on traitors, none of this stuff matters. And if people want to take the prices of the whole sector down on fears of this, all that's just strong hands will accumulate because it's really non-news for Bitcoin to make. For the exit question, we need a percentage-based answer. Is the tether story over? Or is it just getting started? Gabriel, divine. The answer is that it will take almost as long as it does for me to turn my mute button off as for the tether story to go away. Adam, myster. It's not over yet because the fudgesters are just going to keep on jumping on it. They really love to push this story on social media. But for me, it is over. It really is over. They're just stretching out a dead story that really doesn't matter to most people. Andy Hoffman. OK, percentage wise, I'd say it's at least 50%. It's going to be around for some time. It's not going to change Bitcoin's value. It certainly could, in the worst case scenario, make all coins value dramatically lower. But I think it'll be around as long as we're in bear market conditions. And when it turns to bull market conditions, it'll be forgotten just like the hacks. 50% is absolutely correct. Wow. The tether story is far from over. We know there was a crime, but we don't know who the criminals are. The media loves this kind of story. There's three or four more days. Easy, maybe even weeks. Moving on to issue four, awoken by being at the source. A bizarre Bitcoin block has been found with an extraordinary number of leading zeros, followed by the cryptic message, 21e8. Some are claiming that Satoshi Nakamoto has returned, while still others claim time travel, quantum computers, or maybe even just random chance. Gabriel D. Vaan, I ask you, is there any meaning to 21e8? In the hash in question, no. But there is a meaning to it that we like to say, and that we have ascribed to it. There's been a lot of incorrect information shooting around Twitter and different places about this. And I'd like to correct you, the leading zeros are not unusual in any way. In fact, that is exactly what miners do. They're looking for this very specific number that leads with a bunch of zeros. It's super, super unlikely to find, and that's why mining is hard. You haven't found a block until your number that you come up with has all those zeros at the beginning and also matches the data in the block. So that's why that's exactly what mining is. You're just randomly looking for this number. You're basically brute-force thing, backward, and trying to find something that would take only seconds to make sure that it's correct. But in order to do it, it takes a million years. No, it doesn't. But it takes a lot of hash power to do it. It's about 10 minutes at the current network speed. So the leading zeros are totally normal. People were saying, oh, 18 zeros, and then 21e8 is longer than the heat deaths of the universe to do. It's like, well, yeah, that would be true if that's what everybody was looking for. But they're just looking for the zeros. And then the first four characters after those 18 zeros can be anything. And any given combination of four characters after the zeros is about 165,000. So that's about 450 days. So about every year and a quarter, we're going to get a hash value that has 21e8 in it. And there was one in 2009. I think there's been a couple as well. It's totally normal distribution so far. So this is not weird. Not weird at all. However, I will say that, and also people are trying to say that 21e8 is the number of Bitcoin out there. But that's not true. That's 21e6, which is actually the original name of what's now known as urn.com. So that's just yet another mistake. However, while going down this rabbit hole, as you guys know, I'm not sure if I'm going to be a resident conspiracy theorist, I did some research about this issue that is indeed quite mysterious, interesting, and weird, which is the Genesis block. The very first block that Satoshi Nakamoto mined is special and different from every other block that's come since then. Not only in the sense that it wasn't mined per se. I mean, I guess it was mined, but it's definitely different programmatically too. But people are saying on the Bitcoin talk.org, the old forum that's been around for years, my account got hacked, and I got kicked off. I was in an old post on there from five years ago, but I can't access my account because it got hacked a few years ago, and somebody was selling frauds with my old username. But the Sergio Learner actually did wrote a couple of interesting posts about the Genesis block and how Satoshi probably mined on more than one machine for about six days in order to create the work that had the Times Chancellor quote from the Times of London in it, hashed into it, and it had this certain longer hash number to it. It's a mysterious thing where he apparently might have done a lot more work than a normal block to create it. So that was kind of interesting. It does seem like Satoshi had specialized software to create the very first block. There's also some belief that he used six days because that's how long it took to create the universe on the seventh day. God rested some great stuff, a very exciting stuff. But of course, live long and prosper, Nanu Nanu, aliens are among us. Adam Meister, is it all a conspiracy? No, it's fun to talk about these things. I know a lot of guys are into sci-fi. Hey, if you're into this kind of thing, time travel, quantum computers, watch the Isaac Arthur sci-fi channel. Keep it off the Bitcoin for now, dude, because what happens is when people start obsessing over this stuff, it brings them to this world of fun where quantum computing is going to destroy Bitcoin. This is how this nice little interesting story becomes a quantum computing story, or Satoshi is a live story. Satoshi is going to come back. If Satoshi not promoted, all of a sudden showed up and moved this Bitcoin, that would be a tremendous thing. This is not that. If quantum computing was real right now, that would be a tremendous thing, but this is not that. But all the fudsters out there are going to jump on this story and twist it in those directions to try to scare you holders out of your Bitcoin. There is no quantum computing. Satoshi is probably dead. If you like sci-fi and watch Isaac Arthur's sci-fi channel, it's entertaining for the guys like that. Again, if you want to spend time on this type of thing, you're better spent teaching people about Bitcoin instead of wondering about what numbers mean in a random house. Andy Hoffman, could this block be extraterrestrial in origin created beyond the sky? I just think it's hilarious that in such a short period of time in my career that I am being asked this question as if I'm an expert on this. All I have is I read the article and I still have a comments on it. Look, you asked me last week, are we going to see Satoshi again? The answer is no. We're not going to see Satoshi again. Satoshi has nothing to do with him. Otherwise, I'll listen to what Gabriel says and everyone else that it's an interesting coincidence. But I'm not qualified to answer any more than that. I really doubt that there's anything supernatural about it. Satoshi has billions and billions and billions of dollars of Bitcoin. We must talk about him every week. That's why the exit question. Satoshi Nakamoto will return in five months, five years, or never. Gabriel, D. Vaughan. Will return. Does that mean, what does that mean, returned? Like move his coin or what? I don't know. It's like when Jesus Christ came back. He said, I'll be back and then like MacArthur, he was there. Cool. Wow. That's like a whole another rabbit hole. I'm not going to go down it. Satoshi coming back. I'm going to say that he'll move his coin. What was the choices five months, five years, or never? Never. Oh, well, something between five years and never. Oh, it's prices, right? Rules, you have to pick it. Come on. Adam Meister, can you pick one of the choices? Definitely. Never. It's never going to happen. Never going to move. Never going to move. Andy Hoffman. Yeah. Well, you asked the same question last week. And my answer was never that that's what makes Bitcoin so special. It's as decentralized as can be. And for whatever reason, I think it's highly unlikely we will ever see him again. The answer is never. But will we talk about it again next week? Of course, we'll talk about it every week because he has billions and billions of dollars. And he created Bitcoin. And no one knows who he is. And this drives everyone insane. I just watched a story. They were talking about the Ashley Madison hack. They still don't know who did that. Impact team completely disappeared. So it is possible. There are things that we never get to know. This might be one of those. But that's going to drive everyone crazy. We can't have that. Moving on to bonus issue, issue five, Japan Bitcoin action. The price of Bitcoin tumbled 8%. After a Japan watchdog ordered exchanges to beef up their practices against money laundering. The order led bit fire, the largest crypto exchange in Japan, to suspend the creation of new accounts while it makes these changes. Meanwhile, the Mt. Gock bankruptcy case has changed and is no longer a bankruptcy case, moving into civil rehabilitation because of the price of Bitcoins continuous rise. The Mt. Gock's creditors now have not only enough money to pay back their creditors in USD, but possibly will even give them some of the Bitcoin as well. Andy Hoffman, what do you think about these exciting events from Japan? Right. Well, as I tweeted this morning, only a Bitcoin can you get a crash on the day where you find out that the Mt. Gock's trustee is not going to sell. And again, I wrote an article like it's actually at the top of my Twitter again a month ago. I did the math and the analysis. And I said, you know what? It's probably unlikely he's ever going to have to sell anymore, especially because they are moving toward this civil rehabilitation, which means giving people Bitcoin instead of giving them money. And also because they sold so much already and all the B-cash that they sold that they didn't need to do anymore. And equally importantly, if they did need to sell anymore, it would likely be because the price has fallen so much. So meaning it's not a lot of dollars. Like right now, 137,000 Bitcoin that they hold is like $800 million. I mean, this is really not that much money. I mean, there's big institutions out there that could take the whole thing if they wanted to. And it was a major, fun issue because there was big selling that was responsible for the first bottom back in February. And it was responsible for the drop from 10,000. But it's over. I mean, the Mt. Gox trustee issue was over. So if anyone wants to think it's this big overhang, it's done. The other issue though of the day is this, you know, Bitcoin flyers regulation, which again, it's one of these things in a normal market. It's not a big deal. Same thing happened in China. Same thing happens here in the United States with all of our exchanges. Crack and Gemini Coinbase, they've had to beef up their AML KYC. And this particular case, Japan, which by the way is where 60% of all crypto trading occurs in Japanese yet. I mean, it's the majority of the world's trading goes on in Japan right now. And so therefore, the regulators, again, in a country, which is as pro Bitcoin as you can get, it's legal tender essentially. And they have no issues at all with it from a governmental standpoint. But they do see so much trading there that they said we too have to make sure that there's proper controls at the exchanges. So they said to them, guys, you have to beef up your AML KYC just like they do everywhere else. So Bitflyer, Bonterly said, okay, you know what? We're just going to stop taking new clients until we can do that. And they will. And then they'll start taking new clients again. But again, you know, the price, they say this and then bam, the price starts falling as up with some big news. And then, you know, that it, since obviously 6,000 has become the big magnet now, because you know, you knew we were going to have to test it again. That takes over, you know, all the news headlines. And no one cares about the Mount Crocs trustee thing, which is the far, I wouldn't even say it's far bigger news because again, it's not that much Bitcoin anymore. But it is to me the bigger news story that we're done with that. And so again, you know, it all comes down to right now. Okay, we're down to the 6,000. We're down to that low. What's going to happen here? Are we going to hold below and move back up? Or are we going to have to test lower levels? I really have no idea because, you know, we had a rationality on the upside and we've been having a rationality of the downside. But I will say one thing, holding Bitcoin or I should say hotling Bitcoin on a trade store is not that scary given the situation, but holding altcoins, especially second of third to altcoins on exchanges would terrify me right now. I wouldn't be able to sleep. And I think a story like this is pretty exciting because it shows how far we've come. And when Japan started with this case, they probably had no laws about Bitcoin, very little understanding of what it was. A few years ago, when I traveled to Las Vegas to film the money 2020 conference, I filmed Super Nintendo Lossky speech. Mr. Lossky recounted that he was with Japanese dignitaries and discussing crypto with them and when the Mt. Gox crash came in and that they had no idea either what Bitcoin was or what Mt. Gox was. So I think it's super exciting for Japanese people that they could see this, have this move into rehabilitation much better than bankruptcy and maybe people can even get their money and their Bitcoin backs. I think it's exciting news. As far as the pause, I think it's just a pause and they'll restart it, but that can be jarring to the markets. Gabriel, divine your thoughts on the Japanese surprise issue. I think Andy's comments were really on the button except for one thing. I really liked his comments, actually. I have very little to say after that. But one thing I will take issue with is this idea of Japan holding 60% of the exchange volume in the world. I think that is a very misleading statistic that should not be taken at face value and in fact is essentially invalid because Japan is one of the future restrictions that has no fee trading on its exchanges as the norm. So because there's no barrier to setting up many, many, many, many trades and not have to pay for trades individually unlike most of the exchanges in the West, I don't think that's actually valid value. Gabriel, I did not realize that. Well now I take yes, I'm going to withdraw that part of my testimony because again, China had 90% of the volume until we realized it was all watch trading and as soon as they got rid of that it went away. Exactly. I did not really think about that. Exactly. Yeah, Japan's also watch trading. But you're absolutely, everything else you see out about Japan is absolutely right. And Tom is too where they were completely ignorant and way behind the curve and then there's like a mania and a craze and they're really open to it and the regulators are pretty hands off which is very cool. And like you said, essentially legal tender like you can use Bitcoin as money for a lot of stuff in Japan which is super cool. This brings up just one issue I want to address that I was going to talk about earlier regarding the Korean hacks as well. And Italian, something Adam was talking about all these people that are keeping their money on the exchanges and friends in Korea that nobody knows anything about private keys there and stuff. And I'd like to just point out that the language barrier is part of that. I don't know how big of a part it's hard to measure but there's definitely a dearth of good information in other languages besides English. And that's one of the reasons why Andreas had to not post is so active in the community to try to get people to translate his books because that's what he's got control over but he's very into getting translations done so that this information can get out to the world because it's really difficult. There's a reason why India and European countries were earlier than some of the countries in the world. So that's a really important thing that everybody out there that knows what they're talking about. Everybody listening today that their first language is something other than English in your country and where the knowledge is very sparse, get out there, get on your country's most popular video platforms on whatever social media in your country and start talking about it, get the message out on these networks. It's time to start your own show and I give you permission because that's what you are waiting for. And of course Gabriel, everyone knows that wash trading is the only way to keep your money clean so they have no choice but to wash trade it. Adam, my studio thoughts on the Japanese issue. Real quick with the Korean too, I agree that the language barrier, English is the language of Bitcoin and not everybody over in Japan and Korea is down with reading English stuff but again in Korea also there is a gambling mentality and if you're already doing this to gamble, you're not going to be taking the best care of your crypto. You're not going to look into how to properly store it, you're just going to keep it at the gambling site which is the exchange. But going back to Japan and to Mt. Gox, well it's great that the Mt. Gox thing is basically settled now that he won't at least be selling anymore and I mean there have been people out there, Bitcoin is so weak that one entity can bring it down, well they're not going to be able to say that anymore because it's over, he's not going to be selling, so that's great, people won't be able to fund with that. The Bitflyer thing is interesting because they're long term thinkers here, they're trying to do the right thing with their exchange so instead of going the coin based method and keep, despite maybe running into some problems, keeping registrations open, growing too fast, they're slowing down, they're going to take care of this, they're not going to take new people because they want to have good customer service, they don't want people to complain about them. So they're not going to take any new people until they've got everything kosher for the government at least, let's put it that way, everything the way the government wants it. So they'll be no more to us but at the same time the price of, if this is sickle go again, we've been through this so many times when an Asian exchange, when something happens and an Asian exchange, whether it be something mild like this where the guys are actually just trying to do the right thing and slow down and be good to their customers or whether it be a hack, it always seems to spook the market or at least get speculators to start selling their Bitcoin. So I mean, I don't know why the price went down but I want to be shocked. And again, one Bitcoin equals one Bitcoin but some people care about what it's worth in the US. I want to be shocked if the BitFlyer, BitFlyer, not taking any new customers has something to do with the price and fiat going down. Again, people react to these mysterious Asian exchanges in just the most ridiculous ways. It's all overblown and yet it still happens and I don't know when it will end. I don't know when and maybe just speculators out there like it. They like to be able to like sell and make people have weekends based on ridiculous Asian exchange news. Excellent stuff and I can't think of an exit question. I was trying to think of something clever about Japan but I can't think of one. So I'll just move on to the story of the week or the prediction out of myster. Are you ready with a story of the week or a prediction? Yeah, sure. I don't go into predictions. No one can really predict the future but although people love when people predict the future for them, people decide their own future. Personal responsibility is a new counter-fulture. Anyway, I took my personal responsibility but all the way here to San Juan, Puerto Rico. I'm trying to see where all these Bitcoin billionaires are supposedly here and Bitcoin millionaires. Haven't seen a Bitcoin thing here yet. I've been here about 48 hours. I am going to meet with a loyal watcher of Aresha of this show that I'm on now. In my show, Chris, we're going to hang out tomorrow. Hopefully I'll get in touch with some of the Puerto Rican Bitcoin people here. It is. There's a lot of potential here in San Juan. I don't see that much. They seem to have recovered pretty well. It seems a little empty out there on the streets today. I wasn't here before. I don't know how empty it was. But so I'll be here until the 28th and then I just wanted to give a shout out. I'm going to have my show this week and Bitcoin comes on at 8 p.m. today, tuning. Of course, watch last week's show because Thomas is on last week's show. That was a blast. Of course, vortex. Watch this show here on Sunday. Vortex and I and a bunch of other guys are going to be in Calgary on the 9th and 10th for the BitcoinRodio.com. So check that out. Very cool stuff. All happening. Be sure to subscribe to Adam's channel to the Bitcoin Meister channel. Many Andy Hoffman, your story of the week or prediction. OK. Well, look, all bubbles are followed by a bear market. That's a fact in history. So I think there's as much as people would have liked to believe you even had $20,000. Everyone knew something was coming. You just don't know how it's going to play out, especially because you have the Bitcoin story, which is stronger fundamentally than it's ever been. And the old coin story, which is our weaker fundamentally than it was at the top. So again, we're here again. The first drop was caused by the first drop to 6,000 was caused by the Mount Gox trustee selling 8,000 coins pretty much in one day and pushing the price down below 6,000 where the institutions swooped in. This time around, we're hitting 6,000 on the day that we learned that the Mount Gox trustee is not selling anymore. And again, I look around me and I say, yeah, I mean, yes, we have the bear market response to the bubble. And we've had it, but I look around me and I see crickets as far as bad news, bit fire, all this stuff. So this doesn't bother me. The things last year when the price was going up were things that bothered me. I was worried about hard forks and I was worried about a whole, the Chinese governments and I don't really worry about these things now. Right now we just have to sit and wait and see how the market plays this out at 6,000. That's all. Gabriel, divine. There's a bit coin rodeo. That's cool. Is it like, is there like a ball? I don't know. They actually ride any horses. It's more of the cavalry stampede. So it makes sense. Okay. Cool. Cool. That's awesome. I am going to, my story of the week is about an author who has, whose books have stood the test of time, what he calls the Lindy effect. This is a guy by the name of Nassim Nicholas Talab. He's a Lebanese American and he's an old school trader who eventually learned probability mathematics and loves to shut down his critics on Twitter and rip apart their arguments with sophisticated mathematics and just, yay, that's what I call timing. So I'm reading Skin in the Game, which is Talab's latest work in his long series of nonfiction books called In Serto or In Cherto, you might say. And it is just totally amazing and totally relevant for Bitcoin. Talab has said before that Bitcoin is an important innovation and that money needs to be gotten out of the hands of government for that reason alone. But the Talab sort of, what I want to say, philosophical points, philosophical approach is extremely relevant for so many parts of the Bitcoin ecosystem. I highly recommend everyone. He's famous for his book, The Black Swan, which in which he correctly predicted that there was a systemic risk in the financial system that came true a year later. And several books since then. The Skin in the Game, amazing, very airy, dyed fellow, but yet very readable. Highly recommend books by Talab. Excellent stuff, Gabriel. And we just want to show the QR code. If you'd like, you could donate to the show using the Bitcoin address on your screen right now. I've actually gotten a few donations this week. I've been doing a lot of Bitcoin talk show almost every day here on the World Crypto Network. You can call us live on Skype at World Crypto Network and we'll talk about Bitcoin. That's we do. Had a great time this week with the Bitcoin Las Vegas meetup. We had people show up this time, huge improvement. It's getting better, but you just do it every week. Just if you want to start a meetup or if you want to start a show or if you want to start anything, do it on a schedule, do it every week, do it every day. Repetition, practice makes perfect, right? And you can join us at BitcoinLasVegas.org if you're in the Las Vegas area. Be sure to subscribe down below, set the bell for notifications. Like Adam said, check out his show later today and check out Vortex X's show on Sunday at noon. Until next time. Bye. Bye.