And we’re live. Yes. Welcome to another episode of Good Morning Dripped on the here on CNN. I’m not take well or of course, in life straight out of Stockholm, Sweden. And we do this show each and every day at eight a.m. Central Time. It’s a country like an atomic clock. Each and every day. Today, we will be discussing the amazing increase in price we’re seeing right now. And look, this is destined to continue with everything that we’re seeing in the traditional markets. You know that, for example, today we have the Treasury coming out and saying that they’re committed to borrowing three trillion dollars in just three months. Three trillion in just three months. Where is that money going to come from? From the printer is going to be freshly printed and given to the government. We’re going to discuss the US debt clock. You know, this Web site, which is very famous. We’re going to look into how the situation really looks like. What kind of debts do we have, what kind of unfunded liabilities we have and so on and so forth, because this is highly connected to what’s going on right now in the Treasury. And we’re going to take a historical look at the U.S. debt and why it’s growing exponentially right now and will continue growing. And you know that with all of this backdrop, with all of this madness going on, even Warren Buffett is getting a bit worried, saying that we’re facing extreme consequences and that we will be facing extreme consequences from the Fed’s recent moves. You cannot print your way to prosperity. You cannot print your way out of crisis. And that is why we have Panthera capital coming out and saying that we will probably, with a good opportunity, reach 500 K in 2021, which is next year for one Bitcoin. And I know it sounds insane. I know it does sound insane. And when you look at the title, maybe you’re thinking this is formal, this is hope. But look, just like I told people in the preach out in the preach in the preshow as you live. Before we went on YouTube, we did a small show before on our own Web site. So I don’t get is that everyone is a far more hope Schiller until they are proven correct. And then they are suddenly a visionary. Then there’s suddenly a visionary who could see all of this unfolding. But these visionaries are never recognized when they actually do the predictions because then they’re just shilling Bitcoin. Then they’re just spreading formula and hoping. But until you’re right, you’re going to be called the Schiller and then you’re going to be a visionary. That’s always like this. We’re going to talk about that. And finally, we’re going to dissect a very big topic, which is a serum 2.0. You know, that bit mix research did this blog post about the Serum 2.0, which was quite interesting because they were a bit bearish. Basically, you see people on Twitter writing and linking this blog polls that the Forum 2.0 is exceptionally complicated. It seems reasonably likely that something will go wrong and that there will be significant further delays. And I thought this blog post was very detailed. So they discussed it, discussed a lot of great things. And we’re going to discuss also why they are a bit bearish in terms of complexity and what I think about that. So, guys, as you can see where a juicy, amazing episodes coming up. And I hope your bump. I hope you are excited. If you are watching on YouTube, you have already missed the show. As I told you, our life streaming on Amazon dot com slash live. That is the only place to see it live. And so when you come there, too, I am text dot com slash life. Be sure to click on Subscribe right here. Be sure to enable Webelos. And be sure to in their bomb justifications right here. And that being said, welcome everyone who is watching live right now. How are you doing? Welcome. Welcome. Welcome. I see. Do I see. Tiago Krypto Yoda. George Esack, Brunoro de Swen. Cryptome, Mitko. Emman, guys. Amazing. Welcome, Moon. Mind the results of Daniel. So good to see so many amazing committed people here on our livestream. Always a pleasure to hang out with you. And you know that at the end we always do. Q And they were all with always hang out with each other in the chat, in the Q&A, so please stay tuned for that. Also, we have some important news in terms of academy. You know that our academy is literally growing parabolic. Here’s a chart I posted yesterday. So this is the number of posts we have in our exclusive academy community where students discuss different topics, where they discuss different homeworks, where they discuss different projects. They build different projects together. I mean, our academy is literally skyrocketing right now because so many people are drawn to Krypto. Many people who didn’t even consider Krypto as something viable for them, as something that they would be interested in, are now just flooding. They want knowledge. They want expertise because they know that Krypto is here to stay. And it’s transforming so many important industries. And especially when you look at what Blockin is doing in the Enterprise, what Scripter is doing in finance, it’s so much. It’s so much. So I thought this was fantastic statistic and they really wanted to share with you. And we’re pushing all the time. We’re pushing new courses. You know, yesterday we did our Q&A with our privacy. Dr. Granth and he did an amazing job with the biggest privacy course on the market, on the market, covering all privacy points and all privacy protocols. So he did the Q&A only with our academy members. So, guys, thank you so much for supporting. And I think you also enjoy that Kazimi a lot. We got so many great testimonials, great feedback. So it’s it’s amazing. It’s amazing. Now, this is very important. Before we go into the markets, this is very important because we know that Bitcoin is the best performing asset of 2020. And what’s more important is that it was created during the last financial crisis. You know, that it was born in two thousand eight. Satoshi launched it just after the crisis in 2010, and the development started in 2008 and 2009. We saw the white paper and then the network really became operational in 2010. And look, this is just like Bain. I thought this spiral is so interesting because this coin was born in darkness. It was born during the worst possible times. And it was specifically designed to shine and outperform during those times. So just like from the movies, you know that Bain said you adapted to the dark. I was born. Is it an image? I was born in it. And that is exactly what Bitcoin is doing right now, outperforming all kinds of asset assets and really showing itself as the safe haven for the financial industry in many regards. Looking at the markets, we have Bitcoin plus three point six percent over 25 for 24 hours. Well, if you do it, plus the four point two percent, well, X or P plus three point five. All in all, amazing development in the top 10. All coins are going upwards, which is amazing to see. I see the first nation. Thanks monorails. Really appreciate that. We have Hyperion Unique Bright. A BBC coin skyrocketing like crazy. Hyperion, especially with 65 percent gain. And the biggest losers today are maker Zilka Bynum’s. But these are stable. And so basically only Matron Zuleika are the true losers. And it’s only one percent and only three percent and maker. So basically no losers, only winners today. Why? Because things are really heating up. The hoarding is close. People are getting excited. At the same time, we’re seeing trillions and trillions and trillions of dollars being printed completely, completely, mindlessly without considering the future implications, without considering the fact that our children will be paying for all of this. And that is why Bitcoin is so important, because you literally break free from the traditional system and you establish yourself in the new battle system, which is the crypto system. Now, as always, we do have our collaboration with by bit, you know, that you can trade Bitcoin. If it was SRP, you can long, you can short, you can make money when the market goes down or up. Doesn’t matter if you are a trader. And if you go to I don’t think that. Com slash life, you find the bonus lands. So here is where the bonus land is. You get nine dollars in the Bible remix, you get one hundred and twelve. And then you also can get creeped out if you want the debit card scrip to bag debit cards. So all of that is very important to try out if you haven’t yet, but only only if you are experienced trader, because you know that here you can do leverage up to one hundred dates, which is an important tool if you’re using small time France, for example. But if you’re completely new, you will just make a mess. You will make a mess. So don’t touch it. If your new experiment with it, if you know what you’re doing and you just want a new platform to explore. Now you know that the clock is ticking. The clock is ticking. Bitcoin is producing new blocks each and every 10 minutes, sometimes, sometimes way quicker than that. You know that a few days ago, we discussed the Bitcoin network produced for blocks in under ten minutes because miners really went alling into mining. Right now, we have a lot of mining happening right now. Hatriot is skyrocketing. Why is it so? Because everyone wants wants to get the last piece of Bitcoin before the difficult team to mine. The difficulty increases because they’re having rewards is going to is going to drop. So for you to get the same amount of Bitcoin, you will need to spend much more electricity in just a few days. In seven days. That is when the halving happens. And we were in exactly the same situation in 2016 and Bitcoin was trading at six hundred seventy three dollars. And as you can see, it was quite similar situation because we had the dump from from one K, you know, that Bitcoin really accelerated here in 2013. We reached one K then with dumped completely to two hundred and then we started to recover. It’s very interesting how similar these cycles are because we’re exactly here. We’re exactly here. We saw the dump from twenty K then we’ve tried to recover. Now we are really recovering. We’re approximately half way from the all time high. Just like we were in 2016, we were approximately 50 percent from All-Time High and now we are a bit lower. If you compare how how much this is from one point one K and how much. Right. Nine thousand, this from twenty K. So right now we’re a bit below 50 percent from All-Time High. Here we were a bit above 50 percent of All-Time High, but it’s so similar. It’s amazingly similar that we are seeing history repeating itself. And this is very important to realize, because at the end of the day, we are seeing this events only happen once every four, four years. And Bitcoin is really destined to succeed. And this has been predicted by economists and great minds for decades, just like Milton Friedman said in the in the last century. I think the Internet is going to be one of the major forces for reducing the role of government. The one thing that is missing is that we need reliable cash. And it will soon be developed, he said. In the 90s, this was in the 90s. During the last century, a few decades ago in the nineties. Milton Friedman said this. And what we’re witnessing right now is extremely special. It’s extremely special, very rare. And even the industry veterans like Warren Buffet are saying that this is going to have extreme consequences. And Buffett lost 50 billion dollars in the just first quarter. We discussed it a few days back. So he is also signaling that, hey, this doesn’t look good. These guys at the Fed don’t really know exactly what they’re doing because it’s impossible to know what they’re doing. They’re experimenting. We’ve never had negative interest rates in the world to this extent ever before. We’ve never printed this much money ever before. It’s all a big giant experiment. And then and then they’re telling that Bitcoin is uncertain. And then they tell us that Bitcoin is an experiment, while in reality the whole financial system is really right now in uncharted waters. We’ve never been here. Who knows if we will ever be here again or if we will have to restart the whole system very soon. So basically, Warren Buffett to saying that we’re doing things that we really don’t know the ultimate outcome to. I think in general, though, there are things they’re right. They’re doing the right thing, but I don’t think they’re without consequences. And I think they could be of extreme consequences if pushed far enough. Everything that the Fed is doing would have extreme consequences, but there would be kind of extreme consequences if we didn’t do as well. So basically, we are in a lose lose situation. The Fed doesn’t do anything. We have extreme consequences. The Fed goes all in and the prints, the trillions and trillions and trillions will also have extreme consequences. Why is it so? Because the whole system is based on debt. The whole system is debt based. There is no way to sustain this long term. That is always that is why we always have short term and long term debt cycles. And at the end of the long term, the cycle, we need to reset the whole thing. That is, will trade talks about. So this is very key to understand and very important to note. Now, this, of course, corresponds to the actions. What Buffett is really commenting on. Is everything that has happened and also since he said this, since he said this about extreme consequences. We have even more action coming from the Treasury. So now Treasury is committed to borrowing three trillion dollars in three months. Just to give you some perspective. This is basically double. This is double compared to how much they borrowed during 2009 in total. So in a single quarter, the government will borrow more than twice as much as it did in all of last year. This is unprecedented numbers, completely unprecedented. And if you look at the U.S. government debt, it is growing exponentially as well. I mean, if you just zoom out here, you look at the past 10 years, you look at the past twenty five years, you look at the max. Here it is. It is going through the roof and it is only going to accelerate. This chart right here is just going to go straight up from here. It’s a question of time before we truly enter even bigger numbers. Right now, we are at twenty five trillion. Soon we’re going to be at 30. Literally, it’s a question of a few years. We’re going to be at 30 because, you know, we were at 20 not so long ago. I mean, literally three, three years ago, we were at 20. Now we’re soon at twenty five thirty. We’re going to be in one to three years, then very soon at 50, because remember, exponential growth from 50 very soon to 70 80s, then a hundred and then hundreds of trillions. We’re very quick there. We’re extremely quick there. Just look at the past five years. In 2008, seen here is where we really started to go above. And look, here’s here’s twenty three trillion. It was between 2017 18 and really broke above it. And in 2018 we really started to go past that and really significantly go past that. And now we’re always approaching twenty four. Twenty five. So it doesn’t look pretty at all. And obviously we’ve all seen this. This is one of the most important websites to look at when you’re studying economy. So right now we are at twenty four trillion. Twenty four point nine trillion in national debt. So this is one of the most important numbers to keep an eye on. But at the same time, US has a lot of. The U.S. has a lot of assets and you see them here. U.S. total national assets, as you can see, the assets are bigger than the debt. So many people say, hey, Ivan. So doesn’t look good because it’s only twenty four trillion in debt. But here you have 144 trillion in assets. All right. So isn’t it good? Well, not really, because you don’t calculate the liabilities. You need to calculate the liabilities. Here are the liabilities. You have us unfunded liabilities at one hundred forty seven trillion, U.S. assets at one hundred forty four trillion. And then debt at twenty four trillion. So don’t forget unfunded liabilities. What are unfunded liabilities? What, for example, you have pensions. Who will pay the pensions. That is unfunded liability in many countries because pensions. It’s just basically a pyramid scheme. You have people paying for it for the older population. And then your population is depending upon the new generation speaking for you. So it’s literally a Ponzi scheme. And and that is how most of the countries operate. And that is why most of the countries will struggle with it very, very soon, because this whole system is very vulnerable in terms of demographics. Obviously, when you have a big generation, for example, the baby boomers, then you have a small generation afterwards, that small generation needs to feed all of the baby boomers when they are retired. So this system instead should be that you pay for your own retirement, not the next generation, but the current generation. And unfortunately, this is not how not how it works. And that is why we have this huge number. Right. Your unfunded liabilities. So that’s key to understand. You need to keep an eye on U.S. national assets and us. Those are the three key numbers to keep an eye on. I mean, obviously, you can also take a look at the cash flow, because the U.S. obviously has he has cash flow from taxes. And here is the tax revenue at approximately three, three trillion, and that is the federal tax revenue. And you look at that man compared to national debt. I mean, it’s it’s absolutely crazy. And then also look at the liabilities that are completely unfunded. So that’s very important to understand. And that’s that’s the key metrics to keep an eye on. And that is why right now we’re going to talk about Dan Moore Head and Pantera Capital, who predict who predict five hundred thousand for one Bitcoin. James, thanks for the nation. Who do the assets go to? If the US do not pay back the loans, China. James, if you are talking about a default, it will never happen. We will instead see the Fed printing money. This is the thing. All of this all of this debt, it can be obviously printed. I mean, this debt is denominated in dollars. The U.S. can produce endless amounts of dollars. So that is not the issue, really. That that assets will be will be have to given the way to China, like you say. But the issue will be the fact that the currency, it will be worthless and that the currency cannot really be sustained. If this is continuous, if this continues to grow at this rate and at the end of the day, you can not really make a lot of mental gymnastics around this either because it is in many conversations. People make this too complicated. They always say, OK, the national debt is big. But then we have assets. Like I told you, the U.S. has assets, but they also have liabilities. So sometimes you see people trying to explain away the debt. But here’s the thing. The reason why this only continues to grow is because all money is that based. So to create more money, you need to take out debt to really pay back. That means to take out. That is all debt based. So that is why it’s unrealistic. And realistically, that this will ever decrease, especially when the US dollar is the world’s reserve currency. And when the US government needs to produce extra dollars, everyone pays. Not only they, everyone pays because everyone holds there. There there are thomkins, everyone is holding their tokens while they can increase the supply and dump on token holders, on the bag holders, basically. It’s fantastic. It is fantastic how many similarities there are between crypto and traditional economics, because once you understand how different Tolkien’s works and you know that the devs can just print more at all and they dump on Hodler as they dump on investors. Well, the same thing happens in Fiat. To be honest with you, when you hold Fiat, whether it is your national theatre or U.S. dollar, that Fiat will be inflated and dumped on you, the devs will inflate the coin. They inflate the token and dump on you as a token holder. And the only reason they can do that is because you are holding you’re holding it. And that is why that token has value. Because so many millions and millions of people across the world are holding it and using it so they can absolutely dump without any major consequences in the short term. But these consequences are building up in the long term. But let’s talk about the 500. Gay 500 gay prediction from Dan Moorhead. He is the CEO of Pintera Capital, and what he did was that he wrote a letter to investors basically comparing how previous harvests have performed in terms of the price and, you know, Panthera capital. They are quite big. They have been in this industry for quite some time. They’ve invested in a bunch of projects, both successful and unsuccessful during the past years. But that is always how it is. When you invest in new technology and new bleeding edge industry, you will invest in menu projects that go away in many projects that fail. But he is predicting a 50 50 chance, which is quite the big chance, to be honest with you. And the big risk reward ratio, really, if you look at it, but basically a 50 50 chance that Bitcoin goes up and goes up big with a predicted peak of over five hundred thousand dollars in August 2021, as I told you right now. He does look like I hope him schill, but if he is correct, realize he is going to be visionary. Everyone is gonna look back at this prediction and say, man, this guy was correct. And to be honest with you, if you think about how much that is that we go to five hundred K for one Bitcoin. It is not that much, to be honest. It is not that much. Obviously it’s a big increase from here. But is it much in terms of actual numbers? Not really. Not really. Because look, when we go to five hundred thousand, you have to multiply it. You have to multiply it by 21 million to get the market cap. And even if we do, we’re still we’re still not as big as gold is today. Even if Bitcoin goes to 500 K, you realize if you calculate both physical gold and paper gold, it is approximately 15 trillion dollars. And even if you go to 500 K, we’re still below that. We’re still below that. So if Bitcoin is to achieve anything in this world, that is significant. I think 500 K is not even that spectacular. It’s not. It’s not, guys. And if you don’t think that if you think that 500 K is completely out of the picture, I’m not sure you’re here for the real long term. Real long term. Maybe most people are not here for the real long term. I don’t know. Let me know in the chat. Because if you are here for the real long term, you need to be thinking in terms of trillions. Because either we go to trillions or we go to zero. I don’t see any kind of middle ground. Either Bitcoin is big or it becomes obscure and only for some kind of niche operations. And this is this is the thing. I do think that with 99 percent chance Bitcoin will become big. It will become one of the most important global macro assets. It’s really, really needed in this world, as we’ve always been discussing. It’s it’s solving a lot of the issues with financial solution. It is solving a lot of the issues with the fact that you have a currency that everyone can trust. It’s mutual and so on, so forth. So long term, either Bitcoin succeeds or it doesn’t. It’s very difficult for me to see some kind of middle ground. Why is it so? Well, because if we see some kind of middle ground for very long and not many people are using it, this industry will be regulated to death sooner or later. If we are, for example, a 10K for another 10, 15 years, I mean, then you realize that we haven’t reached a lot. We’re still at like a hundred billion. Hundred billion, which is nothing. It’s so small. It’s insane. I mean, literally, you have the the biggest the biggest billionaires in the world. If you take a few of them, they are worth more than this small, tiny number, the small, tiny, tiny, tiny number of one hundred and sixty five billion. Now, imagine if we’re stuck here for 10, 20 years at this tiny number. You think that this industry will be taken seriously by regular folks? No, it will just be regulated to death, to death. And success is the biggest antidote against harmful regulation because it’s just like the Internet tried to regulate away the Internet. Your citizens will dethrone you in a second in the second, because Internet is so important to our allies. Now, if we’re stuck at one hundred sixty five billion, it is not big. Our industry so tiny and nobody will care if this industry disappears, if we’re stuck at this at this amount for four, for ten, fifteen years. So that is why for me it’s quite binary either. We become trillion dollar industry and end soon and soon within five years, five, 10 years, we have to become a trillion dollar industry. And I think it is just a matter of time before we will. I mean, basically, we basically reached already a trillion almost in 2007 since we went to 800 billion, which is also nothing. It’s so small. That is why there are so many opportunities in crypto. That is why we’re so early. We went to eight hundred billion in 2017 as a whole industry. All tokens. And you see US Treasury borrowing three trillion in three months. So sometimes I just feel that our industry has very low, pathetic. Really pathetic self-esteem. When you say that Bitcoin might go to one hundred K and I hear people making these predictions on Twitter online, they almost instantly get attacked and they’re saying, hey, hey, hey, this is unrealistic, unrealistic. We need to break the resistance level resistance level at eight point four K first before we start talking about hundreds of thousands of dollars. But in reality, I think those people aren’t just apathetic who are thinking like, you know, a hundred dollars here, a hundred there would break this resistance. Then maybe we can go to another hundred like that. Doesn’t matter long term. It’s either trillions or we’re not going anywhere or we’re not going anywhere. And if we are to go to trillions, obviously. One hundred thousand dollars for one Bitcoin is completely reasonable. Completely, completely reasonable goal. And calculate how much that is in trillions. It’s not many trillions. Even if you take one hundred thousand times 21 million, it’s nothing. And so when Bantry Capital makes these predictions, they also get a lot of heat. Basically, people saying, hey, Montera, they just want more investors. They want more investors. They want to create far more into their into their fund. So that is why they’re they’re spreading these big numbers of five hundred thousand dollars. Absolutely not. I think absolutely not. Because it’s completely viable. It’s completely realistic. And they do think it’s a question of time. Now, obviously, obviously, most people unfortunately do not do not think long term. They’re just thinking, hey, OK. One hundred dollars up, boom, boom, boom. I sell here. Having happens, I dump. But that is how also most people lose money, because obviously when you are in the highly speculative industry like ours, the only viable strategy long term is to be thinking about five, 10 years into the future. Otherwise, through just gambling in menu. In many cases, if you’re just in case one month, two months into the future, to be thinking long term, that is where the big potential is. But anyway, yes, I hope you understand this. Let’s move on to if let’s. Let’s move on to East 2.0 and let’s talk about why it’s complicated and why a bit makes is actually a bit bearish on East 2.0. We’re going to discuss whether if 2.0 is structure is flawed, but what is going on in the child gaze? How are you doing? How are you good doing? So I think John had the multiplied one hundred K by twenty one million and got one point two trillion, which is nothing. Guys, it’s so small. Even if we go to one hundred K we’re just at two point one trillion. These guys, if you, if you take two point one trillion from these guys, they won’t even notice to us they’ll two trillion disappeared. Well guess we’ll have to print another ten next week. So there is something completely wrong with our self-esteem in many regards in this industry. Completely, completely wrong. And, you know, with bad self-esteem, your life is really handicapped. To be honest, if you have bad self-esteem, if I’m honest with you, self-esteem is so important. You don’t need to be arrogant. You don’t need to be like not a good person. But just be confident in yourself. Be confident in your own personality. That’s so important. Otherwise, I’m telling you, your life is literally capped. It’s capped. And you’re not everything enriching the potential. Let’s talk. Anyway, let’s talk about is 2.0. Let’s move on. Let’s move on. Living on hard mode. Exactly. Let’s talk about Ease 2.0. So obviously, if 2.0 is the biggest thing that is right now happening to Theorem and we’re already seeing a lot of many important changes. One of the big changes is obviously the economic change. We’ll go to steak instead of being miners. So a lot for the hardware, for the facility, for an employee sounds on so forth for electricity. Now we can decrease inflation a lot. Decreased inflation a lot, because now staking is much more cheaper for individual miners. By the way, search, I really glad to hear it. Your Kazimi helps my self-esteem as much. The much, the more you learn. And if you learn as much as possible, the higher your self-esteem will be, obviously, because you’re more competent. Absolutely. So thank you for that shelter. So basically, they’re saying also that it’s both economical and it’s scalability is technological. The fact that it’s SITARAM really needs to scale as soon as possible because it’s growing a lot. And in order for this growth to continue, both full node operators and the consensus agents will need to run larger and more complex computers. So this is kind of true for all block chains. As block chains grow, they need more storage. And as transactions grow, you need more processing power and so on, so forth. Bitcoin tries to solve it with lightning network. Bitcoin cash. They tried to pretend that the problem does not exist. They’ll find it. And in some way, it’s true. It’s true that you just increase the block size and you pretend that the problem doesn’t exist and maybe you can then increase again when the problem becomes some big enough and then you can increase the block size again, at least to some extent. They say that because they tried to pretend that the problem doesn’t exist. So if it truly is the unstoppable single world. Then it may not meet user expectations. You’ve broken up into multiple shards. So this is kind of one of the first critiques in this article. The fact that one of the ways the big contract that tries to solve the scalability problem is by creating different charts, by charging soon you will have the Freedom Network not being just one single network, but basically is going to be a network of different charts. And one, Shahd will be producing and executing some smart contracts and other Shahd will will have other smart contracts or people will produce and deploy some smart contracts here, some smart constraints there. And they’re all being executed in different parallel worlds, so to speak. Basically, instead of having one world computer, which is if you have several different world computers being part of. And if you’ve now is now really split up. But here’s where the issues come in. Because how do you communicate across these different charts? It becomes complicated and there are different solutions to this. But but the question is, will the user expectations be met? Will it be easy to do? So that’s one the experience will be different compared to when two contracts are on the same shard. And when they are interacting compared to when they are on different charts. So therefore, the planetary scale computer vision may start to break down to some extent. And that is true in a way that is true in a way. One could even argue that the theorem and sharding are antithetical concepts. On the other hand, they say, if you may be filling several niche cases and here is also where ELT of truth is. So, look, I’m not saying that this is bad or this is good. And the same is with this article. They’re not saying that, look, the design is bad or is good. It’s just important to talk about the pros and cons. And when you have different kinds of applications running on a theorem, you have the sensors exchanges, you have synthetics, you have games, you have tokens. Do we need. Do we need to have a network that confirms and validates all transactions for all applications that. Sure. Computer will validate and confirm all transactions from all applications? Well, maybe not. That is that is the argument that that is behind Sharding. And so in this world, Chazan can make sense and improve the flexibility of the network to handle different group of users. So the whole idea is that, alright, maybe you run old Dex’s in one Shahd, we run old tokens in another Shahd and so on, so forth. And the fact that Chazan represents such a fundamental change to how it operates and explains why the transition to charging is a more disruptive change than many may have thought. So this fact the charging represents such a fundamental change also explains that this will be way more complicated than many people have thought. The existing smart contracts cannot simply move into a shahadat network. And you know that the idea is to put the current block Shein asset Shahd in a Theorem 2.0. But that will take time and it will happen gradually. So before you even launch, the plan was to go with proof of stake, but just a lot of time and just a can. So much more research than expected. So that’s why it’s been the years since. Since the theorem launched. And still, we don’t have proof of stake. And now we have this launch of Ethe 2.0. We have the beacon chain launching this year in July. We have this shard chains probably launching in 2021, 2022. And then state execution even further down the road. But the first phase, phase zero, is going to be the beacon chain and the beacon chain will be released in July, as I told you. And it’s going to be very simple. You can try. You can try to play around with it by burning your ethe one. So basically your current eath and you get to the ethe on the two point. Oh, lockshin the beacon chain and the beacon chain will be very, very simple. Proof of stake block chain. It will not have all the features of a theorem. It is just for experimentation. So basically when you burn your if one you get two and you are now a staker on the beacon chain. You are being part of the consensus. You are being part of proof of stake. And your coins are transferred automatically to ethe to proof of state validate report. So you’re one of this Dacres when you do this burning. And technically how it works is that when you burn S1 on the current block, shame that serves as cryptographic proof for the two blocking, which basically creates new tokens for you. You get issued the amount of tokens that you burned on the east one block ssion and you can cryptographically prove that you did. So an important thing to mention is that in order to participate, you need to have at least 32 eath. So in order to try to subthemes 32 ether to burn them and then you will have new ethe issued to you on Ethe 2.0. And also realized that either you have 32 ief or you have 64, but you cannot have in the middle. I mean you can have in the middle. But to run a validator you need to have thirty two. And then if you want to. Valedictorian’s another 32, if so, it’s basically multiples of 32 that you need to be playing with, not just 32, but either 32 or 64 or or 64 plus 32, what is it, 96? So that is how that works. And so what’s important to note is that one of the biggest changes is the economical change. The fact that the more people join in the taking, the more ethe will be produced. So inflation actually depends on the participation in staking. So when you try to understand the token nomics offie theorem, too, you need to understand is that during this period, both sets of consensus agents, miners and stake’s require incentive. So this is the period of transition from ethe one to ethe two, and you need to reward both this Dacres and the miners. So basically you’ll have inflation and both chains, at least temporarily in this transition phase. Therefore, the inflation rate will increase at least temporarily until the two systems eventually merge, because when they don’t merge now, you need to support and incentivize miners here and stakes here. So basically have double inflation. But this only a short period of time. This may be considered as a disadvantage, but it may be a price worth paying to ensure Exocet successful transition to 2.0. And this is how the equation looks like for newly produced. If you have one hundred eighty one Times Square root of IEF two and if two is the number of coins that are state in the theorem to consensus protocol. So when you have many IEF stake, you will have higher inflation because more and more validators need to be rewarded. So that is why the inflation in eath is actually not a fixed number, but it’s a range. It’s a range like we discussed a few days ago. Also on this channel, it depends on how many people participate in staking. And you basically have some numbers here that if you have only sixty five thousand ethe the stakes, the max annual issuance will be four to six thousand. If you have one hundred thirty million if staked, you will have this amount of annual issuance. And please remember that when people stake their eath, they cannot sell them, they cannot sell them. So actually inflation in this case doesn’t really affect, doesn’t really affect the sell pressure. Believe it or not. Why? Because all of these guys have locked in there. If they cannot sell it, sell them. So that’s a very important thing to understand. They cannot deposit and just dump. All of this becomes locked in, whether it’s sixty five thousand and then you have forty six thousand produced in inflation or whether it is 130 million and then you have two million produce inflation. This money is locked. It cannot be used for for for selling. So that’s key. That’s key. So the sell pressure is being also decreased by the fact that people need to lock in their money in order to be a validator. And in Bitcoin, it’s not like that. It’s not like that. Instead, you have just Bitcoin produced and you can dump them instantly. But here you actioning to lock in your money to be a validator. And also, the whole idea is to accelerate ease to adoption by making so that the inflation is high in the beginning. So it’s more and more people switch and start staking. This is the whole idea that if if you are one of the first staker, she will actually be rewarded. So basically, the whole idea is that everyone who is right now and if one, we want them as soon as possible, go to two and switch block chains and switch versions. How do we do that? Well, by former. We’re telling. If you’re early, you will be more rewarded than people that are late. So that’s a way of of getting faster adoption. So that’s important. And then they start talking about the fact that while we might have this initial high inflation to to incentivize people to switch because they get rewarded more if they are early, we have some some balancing to that. And one of the ways we balance that is that we have Tolkan Burden in this transaction instead of just being old transaction fees to the minor, a portion of the transaction fees are burned forever. It’s too you have also if being burned when validators fail to participate and when valid, that was behave inappropriately. So there are some some supply sync’s some ways to burn if you as a protocol, because these different events do happen and they will be decreasing and B, the inflation. So that’s important as well in terms of economics. Now they’re also talking about that we need to merge the chains and they give some stats. I will, by the way, link the full article if you want to read it carefully. And it’s important to note that this this whole system is quite complicated in terms of voting. So basically, we have a large pool of stackers and stackers are voting for which blocs are correct and not correct. And if they vote in the wrong way and they try to get a block that is incorrect into the block chain, they will be losing their stake. That is why you lock in your money. You are incentivized to play by the rules. And so this large pool of stackers is being divided into into different into different periods. So, for example, when you have a new block produced, all of them will not be voting because it will just be a lot of voting. We cannot handle all of this votes. Instead, you will have random allocation occurring every three hundred eighty four seconds where you have thirty two groups of one hundred and twenty eight stake was chosen to participate in consensus. So basically each three hundred eighty four seconds, four thousand ninety six takers will be chosen because it serves two groups of 120 S.A.S.. So it’s a bit some technical details about how staking works. So they discuss it as well and they discuss the different the technicalities of the situation. Then they also discuss charging. But their conclusion is mainly that it is quite a complex system and that is true and its history is quite complex. They’re saying that no one is giving them loves to innovate and the theorem loves to move quickly. So some members of the Syrian community have expressed concerns that the issue of technology is now five years old and falling behind. And you know that the theorem is the land of innovation. We have new complex systems being experimented with on a daily basis. You just look at the Dow. I S.O.S maker Diffa. I mean, there are so many things that the theorem has done and basically done a bunch of new innovation by programming money, by programming and experimenting with money. And that’s amazing. That’s amazing. And now obviously, they want to change the underlying technology. The underlying platform to make it even easier, even more powerful and even more capable. So therefore, we need all of this new upgrades. But they are saying this for IEF 2.0 network to succeed. The proof of stake and sharding systems need to work and be compelling enough to attract economically significant components of the ecosystem to go to cross because basically need to redeploy. A bunch of staff need to rebuild a lot of things. All this bridge that basically to relaunch on if 2.0, because the current if 1.0 blocking will not just be plugged and played, it’s not plug and play into the new system. Eventually it will be integrated. But that will take time. So if you want to build right now and you want your project to be on Eastpointe. All right. Now you need to be actually doing a lot of work. So that’s very important. Smart contracts and defense systems would need to choose, which Shahd is appropriate for them. So it’s another choice to make when you have sharding. Where do you launch your your protocol? Where do you launch that? And that’s a whole new strategic decision that people will have to make. And therefore, you need to invest a lot when you’re doing this decisions to invest in upgrading the technology to be compatible with the complexities and limitations of a Charlotte system. Obviously, complexity and limitation here is is referring to the fact that if you want to communicate with another project, with another protocol, you want to send information back and forth between different smart contracts. Now, it is more complicated because they’re living in the separate chart. And how do you do that? By the way, James, truly appreciate your twenty dollars donation. Thanks a lot. James Woods, truly, truly appreciate the support. Thanks a lot, man. Thanks a lot. Finally, they are finishing with this in this report. There there is one big thing that stands out before everything else, and that is that the Freedom 2.0 is exceptionally, exceptionally complicated. With so many committees, shorts and voting types, it seems reasonably likely that something will go wrong. And here they are talking about how voting works. I explained to briefly that you have this this pool of stackers. Basically, here is everyone who is staking. And here you have different the stickers being chosen to vote. But then it becomes a bit more complicated as well as they discuss in this article. So they’re saying it is too complicated for this to just be launched overnight. Probably it will be a bit more difficult to launch. They’re saying that probably we will see further delays. However, despite all of this, potential issues in CRM 2.0 is still probably worth a try. If this does succeed, the potential rewards are considerable. And this is everything about scaling the screen to know if read this article, this everything internal. And it’s always like that. Look at Lightning Network. Is that complex? Absolutely. It’s also a hell of complexity. But this is the complex systems we’re building. This is the complex system we’re building Epper. And up until today, the only ways to scale our basically side chains and we have been using them. But the security tradeoffs. For some people are just too bad. Inside chance. You have lightning network. That’s very complicated, obviously. But the lightning developers are trying to make that work and they think they are making great progress. But it’s also taking years and years and years and years and years. What else do you have? Those are the basic two things. You might have some kind of similar lightning network. Alternatives, for example, like the radar network on a theorem. But that has failed. Nobody is using that. You have optimistic roll ups. That is it. Interesting technology and Zeke roll ups. Those are the technologies that can be deployed on the system one today. And they can solve a bunch of scalability issues all raised today without making a lot of security tradeoffs. So that’s big. I think the biggest thing we can do right now if we’re not focusing on Sharding is a Roll-Up technology. That is huge. What else? This is basically the landscape. And then you have Bitcoin cash. You’re basically just increasing the block size and hoping and hoping that the problem will go away. But here’s the thing. If Bitcoin cash becomes global and successful, they will grow exponentially. And that block size will also have to grow exponentially. So it’s just different kinds of philosophies, different kinds of philosophies and some projects like a forum like Bitcoin. They’re trying to solve it with some kind of layer on top. Like in Bitcoin or with sharding in ethe. But that is complex, no question about that. The complexity is here. And like with all software projects that are a complicated and complex, we are seeing delays and probably I agree with Betamax, probably it will be delayed, but it doesn’t mean that it will not happen sooner or later. Sooner or later it will absolutely happen. But it may be, of course, delayed. Like always, all sorts of projects. I believe this is kind of number one rule of software. You’re always late. You’re always late. All right, guys, let’s do it. Let’s do it. Ivan, was the tradeoff increasing the block size? Well, depends on how you look at it. It looked one Bitcoin and Bitcoin cash had this situation with the fork and with the conflict. By the way, I see a nation mikail. Thanks. Thanks a lot. And so at that time, the biggest threat was a hard fought the chad to make in order to make a V transition. And the bitcoin doesn’t want to do any such movements is very stable. And then just the fact that if you increase the block size means to increase it more and more and more and more. And then you just continue increasing it. And to run the node, you need more and more storage. Storage is cheap, though, so that’s not big, big of an issue. But you also need processing power to validate old blocks and to really be able to handle that. And you need maybe most importantly, network. You need high throughput network and with gigabytes and gigabytes of blocks. Where Will will be? I mean, guys, if Bitcoin goes to trillions, if we go to trillions, imagine what kind of load we will have to we will have to manage. And I think we will go to trillions. So that’s where lightning is so important. If you just increase the block size, well, look, then you have each ten minute all of the nodes in your network network they need to download if you gigabyte. If the block grows, this big and small growth is big with exponential growth. Let’s say you need to download a gigabyte. They need to verify all transactions. And then they all seem to propagate that block further. Yes. It’s not long term. It’s kicking the can down the road. But short term, it is amazing. I mean, I would love for Bitcoin also to increase the block size a short term, just short term. But we can not really do that without messing up the consensus and without having everyone to update their versions of Bitcoin. And that’s simply not worth it. That that’s which is simply not worth it. So that is why Bitcoin doesn’t increase blogsite. Ivan, please create course how to fast migrate to 2.0 and how to stick. Yes. Doesn’t it already works for me. That’s a great, great idea. Thanks a lot. Thanks a lot. We will work on that. We’ll absolutely work on that. Let’s see, Ivan, what are the periods you have to lock your east staking them? That’s actually still in the in the specification development, as far as I understand it. But it is not like in Hecks where you where you guys dig for years and years and years. And my understanding that it is quite flexible with staking. But still, when I say that your money is locked into eath, it is if you still want to be part of staking. I mean, really what I mean, my whole point here was that when people look at this inflation, like max annual issuance at two UST at two million, they get very upset. They like this is big inflation. What the heck? This is very big inflation, but it is already smaller than we have right now with proof of work. But still, many people are like, hey, this is big inflation. But I’m just saying that, yes, two million might seem like a lot, really. It’s not a lot, especially if you compare to today what the what that is. But also, keep in mind, for this inflation to even work and to be that big, you need 130 million locked in. And if if it is the case that people stop locking in and they go and sell and they do something, well, then inflation automatically starts to go down. So it’s an interesting mix. Make mechanic to keep an eye on. All right. What else, what else? Oh, guys, please don’t write this big questions. It takes so much time to re just summarize them shortly, but I will read this one. I went in the hypothetical future where everyone’s wealth is managed by managed personally through decentralized mechanisms. Would anyone have incentive to pay any taxes at all anymore, given that everyone is the sole owner of the private key? If not, look at I don’t really think that it’s a bit utopian that just because you have your private key, you don’t have to pay taxes, because at the end of the day, probably the societies will be organized in some way or another. Probably we will have law enforcement in one way or another. So it’s just a matter of you losing your freedoms. Do you think that jails will disappear? Absolutely not. Or or you are simply complying. So that’s and also the opposite. There needs to be some kind of a level there off of balance. So when people say just because you have your private keys and if it is the case that more and more people have their own private keys, we will still have some kind of level of organization in society. There will still be some kind of of common of common expenses of common projects like Education Swan’s fourth. So I don’t really see it really playing out that way. And if you look in the society, we increased crypto are quite special. I mean, most people you talk to them, they actually think that it’s important that, you know, taxes are here. Maybe it’s on in Sweden. But, look, I just don’t feel that there is such a big movement in that direction that people say, I have my own private property. I don’t pay any tax. Also realize that if it is the case that you are not paying any tax because you have everything on the block chain and you and you think that nobody will notice that, and maybe it is true that nobody will notice that, but they will see that you have a huge mansion. They will see the checkbook. Amazing car. So they will analyze your lifestyle and they will be asking you, where the hell did you get this from? And how will you be able to buy anything in the real world with your with your cryptos? That’s also a big thing. And how do you do it? Let’s say that you have millions and millions and millions. You cannot spend it. And so you realize that practically it doesn’t. In my in my mind at least, it doesn’t really work out. How do small if holders switch to 2.0? John, you simply cannot truly switch and be a validator. But when we go from testing it to main that we will have staking pools so you can still participate in consensus, but not on your own. You’re dependent on taking poll and without them. Thirty two if you cannot really be part of the consensus. And that is the main reason to experiment with EU 2.0. It is to try consensus. We will have digital governments. Evangelist will be the first probably. Probably, probably. Let’s see. Great point. They point of sales would be worried they could manage that. Yeah. Exactly. Exactly. And that is how it works today. That is why you cannot just, you know, have a bunch of crypto and then spend it and. Yeah. And that is also how you have a whole industry was being built just to just to facilitate that. For example, you know, the scammer’s, the plus and scammer’s, they have a lot of bitcoin. They cannot just go and spend it. I mean, all eyes are aurum that bitcoin. So if you tried to convert to how you spend it. So you need to cover your tracks. That is what they’re doing to try to cover their tracks on the block chain. And then they need someone to convert it to Fiat so that they can start starting their next phase. And the next phase is to take that Fiat and to maybe start a business. And then to funnel that money through a business. So it looks like a legit business. And then they pay tax and then they have that money. So, yeah, it’s the whole process. They will have to do a Google, which Ozark go and watch Ozark. OK. If they want to know more. Let’s see. Because they have a printer and those with short straw mean I is greyscale owns half of eef mind last year. Well once they dominate ethe voting. Well if mine is not the full ief in circulation. But the. Yes the the more if you have the the more power you’ll have. I would rather pay taxes to Iven than to Uncle Sam. That’s amazing. Women. Right. Right. Let me know, by the way, if Ozark is good because I’ve watched like the first episode, if you ever if you saw it first season, a few episodes, it became a bit slow and be slow. They moved to that city that. He like bought a bar or something. I don’t remember. But it became a bit slow. Maybe we’ll pick it up again. Why does no one understand the immorality? I think everyone understands this, to be honest. Also, it gets better as you go. Nice. Nice. Yeah. That’s good advice. That’s good advice. What do you think about Weyrich’s? I haven’t used them to be honest. I haven’t used them. But I know people are happy. But I personally haven’t used them. So I cannot give you a recommendation. I haven’t. If Craig wins the case, he is Satoshi. What will actually happen, guys, to keep one? I mean, is that still a topic? Is that still a topic? Absolutely not. What are the chances? Zero, absolutely zero. What will happen to Bitcoin? Nothing will happen. Absolutely zero. Yeah. We’ve had this whole situation now for the past year with the bonded, the career, trying to deliver keys to Craig. And then he did not have keys. It will never it will never happen. I am I am now 100 percent sure that it will never, never, never happen. At least ninety nine point nine. Another nine percent. But we’ll see. We’ll see. The process is still ongoing in Germany if you hold coins longer than a year. You don’t have to pay tax. So that’s actually important because Angela Merkel is literally encouraging you to huddle. She’s building a full country of toddlers. And I think I like that that theory. I like that method. Methodology. Why? Because obviously they don’t want people to speculate the way they’re money to just lose their money. Mining speculation. So she she’s saying, OK. Amazing bitcoin. You invest in it, that will support it. You even don’t have to pay tax. But don’t speculate. Invest, don’t speculate. STARSKY That’s key, guys. All right. That’s it. I’ll see you all tomorrow at 8:00 a.m. Central pian summer time. Thank you so much for contributing to Stream yet again. Always a pleasure. Pleasure. Always fantastic to be here with you guys. And that being said. Have a good day. Enjoy your day. Enjoy your Tuesday. And I’ll see you all very, very soon. Goodbye, guys. Goodbye. Goodbye. Goodbye.