Why Bitcoin Will Fail 2020

Welcome back to the channel. So today's an interesting topic: why Bitcoin will fail. So what's happening here? Um, are we becoming quite anti-Bitcoin? And I think the answer is, um, like many things, the more you look into something and you learn more about it, um, and more information becomes available Um, it can change a lot of your perspective on certain things. And, uh, um, I think it's important to note and understand, uh, in this video that when we're looking at something like blockchain technology, there is some future use to this technology. And although we may have not figured it out altogether yet what that is, We know there's something here. Now, does it have to be Bitcoin? I think that's where a lot of debate comes up and a lot of concern comes up, and a lot of people weigh in to, um, you know, uh, reasons why Bitcoin won't make it, but won't fail— I mean, will fail and will not make it. And, uh, um, so we're going to discuss that a little bit today and see what we can come up with. So I think we first have to start at the word currency in itself, or the idea of Bitcoin being a currency, right? So why is that important? Why is it important to be a currency? Well, when you really look at the dynamics of, uh, of assets and how we use them, uh, something like money and being able to move it from place to place, the utility of it is very important. right? It's something that needs to occur within our economies. And what's happened with Bitcoin is Bitcoin has shown itself to be the worst case scenario of a money in many respects. You know, as compared to what we have now in the form of digital money, you know, Bitcoin relies on us needing to pay the fees. Bitcoin, isn't very efficient on how it moves, not only energy-wise, but it's just in the processing time, right? The transactional times. And it makes a very, very difficult money, bad money. Now it's led many to the idea, and many statements have been made that because of this, They had to rethink Bitcoin, right? They had to re-centralize Bitcoin in a way. They had to reimagine Bitcoin, if you will, from the idea of any kind of digital currency to now where it does become this, if you will, store of value that just kind of sits in the wallet, right? And of course that's become a lot of problems because if you're not gonna use something in this fashion as a currency, then it's going to come up like, what are you using it for? Right? And what is, what is it doing? So it kind of fails in that way of being a very effective currency. Right? At the very least, it'll be probably the worst of the currencies. And you could just use something else in its place. Right? But it's more concerning than that, because if it's not a currency, then comes up the idea of It's just kind of being put in this place of store value so people can just speculate on it just for the sake of speculating on it. So The Wolf of Wall Street, the movie based on the life and times of Jordan Belfort, the Wolf of Wall Street, who lives this very, uh, extraordinary Disturbing Life Whilst on Wall Street. He weighed in on Bitcoin, and when I first had heard about him speaking about Bitcoin, I thought he was one of these people who had just kind of, you know, been part of scams, got caught, and was a bit bitter about it and decided that he was going to go talk negatively about something else that he thought was a scam, right? But after listening to Jordan Belfort in his interviews and what he had to say, it was, it was actually kind of, uh, a bit jarring to me. It kind of stopped me in my tracks that a lot of the things he said made sense, uh, about why it didn't work as a currency and why something like Bitcoin was created to be a part of more so a way to do this speculation to try to run up the price because they couldn't do much else with it. Um, and the more I listened to that interview— I think he did it with Valuetainment, and I'll try to leave a link in the description. I want to play a clip of it, but, uh, I don't really like doing that anymore because when you do that, um, you know, it's other people's content, and sometimes people can get a little bit, you know, out of whack about that. Um, but, um, you know, he talked a great deal about, um, why Bitcoin— they had to kind of create the scheme for Bitcoin to speculate on because it could never work as a currency. It never would be a currency. And, uh, um, you know, if it's not a currency, again, the use has become so confined that now you can have possibilities of where people can create schemes, uh, in situations in Bitcoin as it were, where it could be manipulated even if it wasn't meant to be in the beginning, which is what spawned many forks and many divisions in the idea of Bitcoin. Even if it didn't start off that way, uh, many people are starting to believe it's become that way and many institutions are taking hold of Bitcoin Even if we look back at, or we look at projects or entities rather like Grayscale who own large and large chunks of Bitcoin. So they now have this stock, this Bitcoin traded stock going. And many people believe by them having a stock, what they're able to do is now get everybody to buy into this Bitcoin stock. They already control a large amount of Bitcoin. And much like they've done with many other financial vehicles or groups or entities, banks as it were, governments, they can now control it through selling off more and more shares of this, um, the stock in a sense, uh, inflating Bitcoin. And then they can go back in the market and hike the price of Bitcoin, right? Buy it with the, with the stock value that they've gained. And then they can at various intervals control the flow of Bitcoin, right? And these type ideas are drawing a lot of concern and not saying that that's what will happen, but there still lies the possibility those things can happen from how Bitcoin is set up and what's going on with it and the actual use case of people using it is not there. right? Because people aren't transacting Bitcoin. Um, in conversations with people, I never run into people who, uh, say that, uh, right, they use Bitcoin for the day or that they need to. And that drives the next issue too that I think is a problem for Bitcoin, and that is, um, vendors and merchants, the people who accept this thing. So a lot of people aren't going to accept Bitcoin. That's number one. Due to the volatility, right? You're— when they receive a payment, the price and value of Bitcoin is moving so much around that their goods and services value might— may go up against that to the point where they're not profitable, right? And it's very difficult to get around that. Not only that, but what do they do in the event these vendors where, um, there is a chargeback of some sort, right? You, you can't facilitate chargebacks, so that makes it not the best money out there because we know we can charge back on our credit cards, so on and so forth. They're fast, they're going to be easier to use for most people, and so most people aren't going to opt into using Bitcoin in that way. The next part is the store of value idea. So people are saying that Bitcoin won't be in use in that way as a money. So what can we expect then? Like, what, what can it be used for? So then we come up with the concept of digital gold. The problem is the efficiency of Bitcoin when you couple the large amount of expenditure of electricity. As it gets ever closer to the gold market, the electrical costs go up and up and up, and it just gets crazy to a rate that is not efficient at all, very wasteful. Even though proof of work is the best method we have, there are options on the table And more than likely in the future where the costs are so high to facilitate a cryptocurrency, people are going to start to opt out into something else, other proof-of-stake models, right? Maybe something outside of proof-of-stake and proof-of-work altogether. So you couple all those ideas, you go, well, it's even not so much more the case that Bitcoin can you know, succeed anywhere near where we want it to. Of course, that's not to say that Bitcoin prices can't go up over the short term, over periods of time where it might even go to $50,000, $100,000. No idea. But it does let many of us, or help many of us to conclude that the legacy of Bitcoin, how it ends, is becoming more and more determinable based on how it's designed. So in those cases, in those examples, starting from the very beginning and getting to now what we're looking at with Bitcoin. Um, what are some of the— what, what would be a solution in cryptocurrency to this? What could a cryptocurrency do, uh, on a scale much better, uh, than this, or to even meet some of these great concerns and challenges in Bitcoin? And, uh, like on this channel, what we do, we've always tried to not just point out problems, but if it all— if at all possible try to provide solutions and some options. So we're going to try to do that right now. So in conceptualizing what type of cryptocurrency could work under the circumstances of what we have in cryptocurrency, some of the topics we just covered here, some of the issues we just covered, the problems we, we cover in Bitcoin. What would work then? Is there anything that would work in a way that we would need it to work? And one thing that kind of kept popping up, I think, in my research and trying to really sit back and think about this was ideas like Libra coin. So what had become quite appealing to, and I, in projects like Libra coin, um, was the idea that it could have this basket of fiat currencies that backed it up, that it wasn't one and it kind of diversified. It was the first diversified through these, this basket of cryptocurrencies. Now I know that that would lead many to say, well, hey, wait a minute, fiat currency and cryptocurrency. That's always been the problem. That's what we're trying to get away from, right? So we need to understand a few things. Uh, yes, understandably so, there are reasons we want to get away from fiat currencies. Um, but it's also important to understand that fiat currencies aren't exactly these faith-based only things that many of us try to tell stories about. Fiat currencies under government decree, like what you get in the United States, this is something that's backed up by natural resources of the country or the continent. It's backed up by, um, um, or North America rather. It's backed up by, um, armies and, and, uh, um, you know, the citizens that helped enforce those ideas. So this isn't just, uh, I believe in your money, this piece of paper, right? There's actually a lot going on with that. And I just thought that was important to try to clarify some of the differences here. But, uh, um, whereas the idea of Libra coin with this basket of fiat currencies, something different we haven't seen before, and it might be something that could work on a pretty large scale. Um, I would have thought that in going in that direction with something like Libra coin, that the network itself would be enough to provide the value. These billions of people giving over all this attention value would be enough to substantiate the value of that network. And that kind of got me thinking, uh, that Part of the problem isn't so much just that something needs to be a currency and can't, or just this idea of it being some type of store of value that people just speculate on, and it wants to use that designation of a store of value just to be able to have people speculate on it to no end, right? Because no matter how you turn this around or how you look at it, it's gonna always go back to, usability, use case, right? And the situation is I just went through my whole day without using Bitcoin and wasn't worried about it. And I think most people in the world are in a very similar situation as that. Um, you know, but there's something significant to this type of, uh, network of people and attention value. There's something that is quite prevalent there. And with a project like BitcoinMYK, which is taking some of these elements, I think what has been missing and what BitcoinMYK gets right is it takes the network itself the users, the social media experiences, the value they bring, and it backs up the token by that. Now, this is something quite a bit significantly different than what we've seen with other cryptocurrencies, but because at the same time BitcoinMYK forks Bitcoin, right? Means all the Bitcoin holders pretty much acquire this token through an airdrop free. And then you have this coupling of the biggest network in cryptocurrency, Bitcoin, meeting a structure that is validated by the attention value and use and people that are on it doing some of those very important social media things, uh, that can build a great amount of value right now. As we look at the price of Bitcoin move back and forth. It was well over $10,000. Now we see it's come back down. Now again, not trying to badmouth Bitcoin here, but this type of value and the validation of this cryptocurrency when we don't know who owns it, who controls it really, um, and the distribution is still terrible. Right? It's not good distribution through Bitcoin. So there's centralization over the exchanges, there's centralization over the development of Bitcoin, right? There's centralization over the mining. And the worst part is there's centralization over the wealth, right? Because who controls the value of the network? It really doesn't matter how many servers are central or decentralized. The most of the network is owned by a very, very small percentage of people. And that seems to be what's occurring with Bitcoin, that value-wise, it's, it's, uh, uh, to, uh, the, the people who value it, it is not, uh, giving them the economic prosperity like the original idea of, of Bitcoin was, right? So it is not working in that, he says, in that, in that way. Right? So the Bitcoin MYK project, part of what it does is it's something unique. If you could kind of imagine a situation like what you might get with Libra coin that is very highly centralized with something less centralized like Bitcoin MYK that has all those elements of the advantages of what you get with centralized platforms yet the advantages of being decentralized, right? Through many features that make it on par with that. You can have this kind of perfect mix there of what we believe is needed in cryptocurrency, while at the same time the project being incentivized to push this forward. This is something that doesn't occur in Bitcoin. right? And many of these elements are what's going to cause the failure of Bitcoin. Also, in addition to that, one of the big issues, of course, with growing the value of a cryptocurrency is who's going to take it, who's going to accept it. And, uh, of course that goes back to merchants, vendors, and the like. But in the BitcoinNYK ecosystem, there is an ecosystem where the cryptocurrency itself is always accepted and taken, right? Whether it be here on the site, musicians can earn, models can earn, photographers earn, you can— people can earn by playing games, listening to music. We have a Fiverr-like site where they can earn the token. And this, this whole ecosystem as it were, is already designed around the cryptocurrency Bitcoin MYK. So you don't have to really go out for vendors or anything like that. It's all done in the ecosystem itself. And that ecosystem expands from inside out, right? So this network expands whilst at the same time keeping these features. Very interesting project. Um, and I think ultimately to close the gap with Bitcoin NYK, to solve the cryptocurrency problem, all right, we also have, uh, something, uh, um, that has been a hot topic for a while, and that is universal basic income. So when we think of blockchain technology, how I started the video, what do we do with this technology? There's not a lot we can do with the technology. Now, we've tried some things, right? But we've also discovered that it works best, uh, only dealing with monetary policy, you know, sending money, uh, back and forth, and censorship resistance, right? If we're not doing any of that, um, the blockchain doesn't really work. And so what's happened is a lot of people, a lot of projects have tried to put things on the chain that actually work better off-chain, right? And so it's created this inefficient use of this technology, and it's actually created an inferior product to products off the chain. And what that does is it makes a mass population of people not want to use it, but to use things off the chain instead, because they're not as good on the chain. Right? So because of that, uh, people have tried different solutions, different business solutions. Some people just have tried to put things on a blockchain to make money. Some developers just want to build things and add them to the chain to generate some type of revenue or money or something like that, right? So, uh, because of that, then they put all these things on the chain that maybe don't need to be on there. People don't want to use them, so the applications don't get many users. But what we're talking about is something different here. We're talking about keeping the things on the chain like the monetary policy, right? The control of the distribution to where that it is, um, healthy, distributed across the chain. Uh, and, uh, it is— that part of it is totally decentralized, right? But then we're talking about more practical use of cryptocurrencies where we create this ecosystem of different products and features that accepts the cryptocurrency itself, that integrates social media into all of this. And it's a very interesting system, one we've never seen before, where Everything is kind of together revolving around the cryptocurrency. And so far it's being welcomed and well received. You know, of course, when you start projects off like this, the way we're trying to start at a very grassroots-like level, like the early days of Bitcoin, marketing-wise, it takes a while for it to get out and to reach people. And I think that's where we're at now. But we are trading on the Waves exchange in the Steam Engine marketplace. But, um, you know, in understanding fully what we think needs to happen in cryptocurrency by using this type of Bitcoin fork, the unclaimed BitcoinNYK tokens are actually going out to the public in a form of universal basic income. We believe universal basic income is one of those ideas that actually work on the blockchain. It works better than some small businesses or ideas or things that maybe don't need to be on the chain. Whereas universal basic income is something totally different. If you're going to have some type of global universal basic income, which we believe would mass adopt cryptocurrency, you will first need a delivery system that is cost effective. And we could do that with blockchain technology because it wouldn't make sense for people to, who are receiving this type of universal basic income to then have to pay exuberant fees to send it back and forth. So you need the blockchain for that. You'd also need the blockchain to be outside of government control because you wouldn't want governments issuing some type of universal basic income and then their political rivals or whomever deciding that they don't want it. And so it wouldn't be for the people anymore. It would be controlled. And so I think a global UBI would solve that as it would be outside of government hands. And that's why I think universal basic income is one of those things that the blockchain could do very well because all it has to do is deliver the payments very well, mass adopt everybody to cryptocurrency, and it will become accepted like a standard money outside of government control. Something different from where Bitcoin is going now, Bitcoin is going to a lot of institutionalized government conjoined control. And that's just the reality of the situation. If we do a little bit of research and investigation, we'll see that over the years Bitcoin has gotten farther away from the network of representing the people like many of the early ideas of it, right? You have large data centers that control the mining of Bitcoin, and the average user can't mine at home anymore. And all of these things are moving Bitcoin to a more corporatized, institutionalized situation. And I just don't see how that resonates with people as any type of economic freedom or anything to that effect. Because on one end you might say, well, yes, the supply is fixed, it's simulating some type of gold, right? In supply and fixed supply. But does it really matter if most of the cryptocurrency and most of the Bitcoin are controlled by a few people, right? Who can control it, who can drop it by 20% to where it becomes very highly volatile. That makes Bitcoin to a great degree useless. So the great thing about cryptocurrency is every time we run into a situation like this where we don't think a cryptocurrency can work, we have the ability to fork it and we have the ability to address the cryptocurrency space and present new solutions. And that's what Bitcoin MYK is doing now. It's presenting a solution to many of those issues and many of those problems, and it's To take another step further, you don't even have to buy Bitcoin MYK. You can obtain Bitcoin MYK free. I know it's hard to believe, but you can. All you need to do is register, join the site, and we'll walk you through on how to get that. We have a live chat system where we can help you if you have any problems collecting your free Bitcoin MYK. And I know it raises the question to, Well, how does the product make that money? Is it worth it or things like that? But we have to remember that many of these services, many of the large corporations that have made billions and billions of dollars have done it by providing freemium services. They've done it by providing a lot of freebie things, right? And no civilization has ever existed that's been totally capitalistic, right? It's always been some mix of Capitalism, socialism, free money going out to the public, stimulus throughout the economy to some degree. This is no different. The free cryptocurrency comes from the tokens that Bitcoin doesn't claim. Bitcoin holders don't claim in the fork. What we do is we recycle them back through the project and they go to the people to claim UBI. So it's done off the unclaimed Bitcoin for fork tokens, right? Many Bitcoin forks, Bitcoin holders either can't claim because they've lost their keys or they're just not interested in claiming. Whatever the case may be, the ones that aren't claimed go to fund our universal basic income project. So it's a very interesting project we got here. I think it addresses a lot. Be sure to check out the Wolf of Wall Street, Jordan Belfort, why he said Bitcoin would fail. I think he gives one of the more compelling stories than I've heard. But there are many videos, there's many sources of information, many economists who believe the same thing. And, you know, I think we owe it to ourselves to always not just embrace one side of something, but have a full encompassing view of it so we can make better investment decisions. In closing, I will just say I'm very pro-blockchain technology, but I do not think Bitcoin is it. Uh, and I don't know exactly what will be it. Uh, I like to believe BitcoinMYK would be it, but, uh, we have to look at BitcoinMYK like I'm asking you all to look at Bitcoin as well. But I am asking you to take a look at BitcoinMYK because I think it's information that, um, is important to your cryptocurrency journey. But that's all I want to say in this video. If you like content like this, don't forget to join or join Bitcoin and Work, but also don't forget to subscribe to our YouTube channel to get more information like this. Uh, hit your notification bell at the top. It will let you know when we release new videos. Uh, and until next time, take care.