Thread by @BitTowne

The latest @WhatisMoneyShow, with @Breedlove22 and @BrianEstes32 is a must listen. It's jam packed with so much on the history of money & the promise of #Bitcoin and blockchain technology. Highly recommend listening in full but if you can't...highlights 👇

@BrianEstes32 on what has driven the change in money...

1/ "In the 11th century the Chinese invented paper money. So 1,000 years ago that was the new technology. This paper money is light weight, it's more portable, it's more divisible, than this heavy bag of gold."

2/ "560 years ago the medici family started using double entry book keeping, which created the ledger. That's the ledger technology. Ledger technology we have been using for 500 years now. That's what created the banks, banks are ledgers, just big ledgers."

3/ So, all #Bitcoin is, is the same ledger technology that we have been using for 500 yrs, with a little added twist to it. That twist is that it's distributed around the world to 10,000 nodes and its updated every 10 mins. I basically call this triple entry book keeping."

@BrianEstes32 on the petrodollar breaking down and the everything bubble

1/ "Since 1971 household net worth has grown dramatically faster than output. What's causing that is the printing of money, assets are worth more b/c interest rates near zero are pushing up asset prices."

2/ "That can't last, that can't continue forever. Eventually your output should equal your net worth. So there could be a lot of pain in the future, as the value of assets come back down to reality."

3/ "For example, "@Apple stock went from 1T in value to 3T in value. If you look at the EPS, the earnings didn't go up that much. Earnings were up 25% but the stock went up 200%. So that's a direct result of people taking dollars & plugging them into @Apple as a store of value."

@BrianEstes32 on if you have missed #bitcoin...

"#bitcoin represents about 2% of the addressable market of money. So that's still small, that's still early. You haven't missed it."

@BrianEstes32 on #bitcoin compared to #Gold...

1/ "Bitcoin becomes the scarcest asset on earth in 2 years. Gold has a 10T mkt cap and #bitcoin has less than 1T, you would think bitcoin would be worth just as much as gold in 2 years. Bitcoin should go up 10x over the next 2 yrs."

2/ "Bitcoin is better though right? It's more portable, divisible and verifiable than #Gold . If we used gold for 3,500 years and now we have this better version of gold, why wouldn't humans just default to that. That's what you see, you see people opting in."

@BrianEstes32 on what is #Bitcoin through the scope of the internet...

1/ "Paypal's original mission was to create #Bitcoin. They wanted to create the software that allowed a peer to peer transfer of value through the internet and they couldn't figure out how to do that."

2/ "So PayPal defaulted to using the U.S. dollar. This has been a longstanding problem, not being able to transfer value through the internet without using a bank or a credit card or PayPal. So when Satoshi Nakomoto invented the #Bitcoin blockchain, that was the solution."

"3/ It was something we have been searching for, for 30 years, and finally someone figured out how to create the software that allowed us to transfer value through the internet. So that's what [we] are doing, we are rebuilding the internet on blockchain technology."

4/ "The entire internet is being rebuilt, correctly this time. It's not gonna happen overnight, but over the next 10-20 years, we will have an internet based on blockchain, not on the banking system."

5/ "All #Bitcoin is, it's open source, internet protocol software. That sounds like a lot but we use that every day. When you get on the internet you see that HTTP there? Thats hyper text transfer protocol. Thats open source internet protocol software."

6/ "When we send email we are all using the same protocol. It's call SMTP, simple mail transfer protocol. So we can send data to each other. Eventually we are all going to be on the same protocol called #Bitcoin to transfer money."

@BrianEstes32 on blockchain technology contributing to rearchitecting the internet

1/ "There are systems being built that are decentralized. Anything that's a network (Uber, eBay, Facebook), that matches up drivers/passengers, buyers or friends, they take a toll for doing that"

2/ "Eventually, we'll have peer to peer networks. An Uber, an eBay, a Facebook based on blockchain that doesn't extract fees out of their networks so that 100% of the benefit of the network goes to the users."

3/ "Anything that is a network is gonna get replaced eventually by blockchain technology. Those are being built today, they just haven't been launched."

Per @Breedlove22 , "Right, so this is like the mitigation of rent seeking then?"

@BrianEstes32 "Exactly."

@BrianEstes32 on #bitcoin adoption and growth

1/ "We are like in 1994 in internet. In 2029, using what's called s-curve analysis, 90% of households should own #bitcoin, in the U.S., in 7 years. S-curve analysis is the way you measure the adoption of new technologies."

2/ "What it means is that the time it takes for a new technology to go from 0% adoption to 10% adoption is the same amount of time it takes to go from 10% to 90%. So if it takes 10 years, #bitcoin being a 2009 invention, by 2019, it got to 10% of Households own bitcoin."

3/ "So that means in in 10 more years, from 2019 to 2029, it will go from 10% - 90%. So we are at 25% today, we are right on track to hit 90% in 7 years."

4/ "So the time you invest is during the apex of the slope going up. We are just passing that and now on this upward trend. By 2029, all the opportunity is gone."

5/ "If #bitcoin goes to $10 million dollars a bitcoin over the next 7 years, which is what our models show, that isn't any more growth than what happened over the last 7 years. It's the same percentage growth, it's just bigger numbers.

Links to watch/listen here:

https://twitter.com/WhatisMoneyShow/status/1532420293947699200?s=20&t=bylSLeScYtAm55AA4v1lVw