Mike Dillard explains how blockchain reduces transaction costs, improves privacy, and enables digital tokens for goods and tickets. He points to Bank of America's blockchain patents and Cash App's Bitcoin integration as signs the technology is moving mainstream, while noting Bitcoin's software has never been successfully hacked.
Let's talk about crypto here for a second. Right? So with the three of us, like, you like it in theory, I love it and you love it. And I'm like, wtf are y' all doing? So. So let's go there. Mike, why are you so bullish on that?
I see where it's going 10 years from now to zero kind of functionality. Well, I don't look at it in terms of.
Of Bitcoin. I look at it in terms of it's a new type of technology that has never existed before and the benefits that it brings to the table, there's already a market for. Right? So from a.
Cryptocurrency perspective, it's getting rid of 2 to 3% merchant fees, wire fees, having banks control the in and out.
Of privacy. Like, just the economics that it brings to the table. From a streamline perspective and an efficiency perspective, it's already coming. Like bank of America is the largest patent holder for blockchain tech because they see the writing on the wall. Like, as soon as there are alternatives, like the Cash app today is from Square, where you can buy. Bitcoin is the number six app on iTunes. It was number one yesterday above YouTube.
So I see that as a huge piece. And then I see the two other primary segments besides digital money are that it creates digital objects of value for the first time in history. So it's a completely new class of asset and material, basically, where anything in the digital space now doesn't have a ton of value because it can be knocked off, copied and bootlegged, whatever, maybe, yeah. You know, Bitcoin, if we look at that from a value set, just from the software perspective, it's the only software that I know of, and I could be very wrong in this, but from what I'm aware of, that's never been successfully hacked that's ever been created. Windows has been hacked.
Yeah, right.
Every software on the planet has been hacked except the Bitcoin blockchain.
So there's value there.
Right.
And so now we've got digital objects of value, which means I can turn any object that I want in the physical world into a digital object that has a one to one relationship. So that laptop, I can digitize it, put it for sale, transfer ownership to a friend, whatever it may be. A can of Coke is a great example. I can send you a can of Coke digitally. There's a company called BlockV that's doing it from the graphical interface perspective. So you're not dealing with, you know, public keys or private keys. Or any of that. It's literally an icon of Coke on your phone that I can swipe and send to you and you can hold it up at the gas station and redeem it for an actual can of Coke. Right. So there's a whole new entire economy of digital objects that's coming that'll start in the gaming industry.
And this is going to be huge for intellectual property because copyrights and you know, electronic, you know, when you sell.
A song, right, you know, the song can be copied, the ebook can be copied, you know, Kindle and itunes, you know, they've done some things, things to.
Well, let's just take concert tickets and the, the fraud and the theft that.
Sure.
Those companies have to deal with when you go to buy a 500 ticket to an event and somebody's ripped it off. So these will all be handled on the blockchain now it'll be possible, impossible to counterfeit those. And then the third category that has me super excited is the security token. Security tokens. So essentially be able to tokenize any asset, whether it's a business, a piece of real estate, your company, whatever it may be, a car collection, an art collection, a boat, and essentially go through. You know, the SEC is going to have a role in this, thankfully because they're going to have to keep things legit. But it's essentially going to allow anything to go public. So I can take my company public, you can take yours. We can issue a token that serves as shares and we can enjoy in that kind of liquidity and appreciation. We can send out dividends to the token holders just automatically via the wallet. There's no intermediaries.
It's crowdfunding 2.0.
What it's going to do is it will truly create a global economy. That is, there's no third party intermediaries that are necessary that can interfere in the process. So there's freedom of money for real, not the illusion of it. And it will allow us to invest in an apartment complex in Shanghai from our phone if we want to. Right. And raise money for businesses without having to be one of the 5,000 companies on a stock exchange. So the liquidity and the money and the opportunity that's going to create it around that kind of ecosystem is going to be never before.
It will, it will decentralize and democratize capital flows. No, no, yeah, capitalism, absolutely. Yeah, that, that's good.
So this is coming, this is probably the first time I have ever been excited about crypto and. But here, here's why the conversation that we've been having has been about the technology.
That will come out of that, the disruption of government. Holly frickin Luya. I mean, this, this is all great stuff. The technology is incredibly fascinating and I think it will probably change the world. But when it comes to trying to buy specific coins, I don't understand how anyone thinks that's a good idea. Give me a company that is a means of exchange on the, on the, on the blockchain system. I'm all in.
Sam.
