1 00:00:00,080 --> 00:00:03,320 Speaker 1: Hello, and welcome to another episode of The Mark mo Show, 2 00:00:03,320 --> 00:00:05,480 Speaker 1: where we talk about each and every week. We talked 3 00:00:05,519 --> 00:00:08,160 Speaker 1: about the world changing right before very eyes. Of course, 4 00:00:08,160 --> 00:00:11,039 Speaker 1: we talked about it as a pendulum swings where maxed 5 00:00:11,080 --> 00:00:14,320 Speaker 1: out of centralization, the world is moving back to decentralization. 6 00:00:14,640 --> 00:00:16,880 Speaker 1: We're talking about the decentralized revolution. Of course, we look 7 00:00:16,920 --> 00:00:18,560 Speaker 1: at it through the lens of three things each and 8 00:00:18,560 --> 00:00:24,840 Speaker 1: every week, politics, finance, and technology. And today we are 9 00:00:24,880 --> 00:00:28,920 Speaker 1: going to dig deep into a giant topic along away 10 00:00:28,960 --> 00:00:31,960 Speaker 1: to topic. Something everybody's been waiting for. It finally happened, 11 00:00:32,000 --> 00:00:35,680 Speaker 1: and it covers all three of those. It's politically pushed 12 00:00:35,680 --> 00:00:40,760 Speaker 1: and motivated. It's technology, and it covers the new financial markets. 13 00:00:40,800 --> 00:00:42,840 Speaker 1: It's all three of these things, and it is big news. 14 00:00:42,960 --> 00:00:44,479 Speaker 1: Like I said, it's something that the world has been 15 00:00:44,520 --> 00:00:47,520 Speaker 1: waiting for. Maybe not you, but people that are paying 16 00:00:47,520 --> 00:00:49,680 Speaker 1: attention to this part of the world have been waiting for, 17 00:00:50,280 --> 00:00:53,440 Speaker 1: holding their breath, standing on their tippy toes. They couldn't wait. 18 00:00:54,040 --> 00:00:55,520 Speaker 1: Is it gonna be good? Is it gonna be bad? 19 00:00:55,920 --> 00:00:57,680 Speaker 1: Is it to buy the rumor sell the news? Event? 20 00:00:58,000 --> 00:01:00,000 Speaker 1: What am I even talking about? Well, what we're talking 21 00:01:00,000 --> 00:01:05,120 Speaker 1: and about is the Ethereum merge. The Ethereum cryptocurrency the 22 00:01:05,280 --> 00:01:10,520 Speaker 1: second largest blockchain by market cap by market valuation. And 23 00:01:10,560 --> 00:01:15,440 Speaker 1: they emerged, they merged, uh from something and to somethings. 24 00:01:15,440 --> 00:01:17,160 Speaker 1: We're gonna talk about that. We're gonna talk about what 25 00:01:17,200 --> 00:01:19,520 Speaker 1: it is that they emerged from into. We're gonna talk 26 00:01:19,520 --> 00:01:24,520 Speaker 1: about the political pressure and political motivation for that to happen, 27 00:01:24,600 --> 00:01:27,240 Speaker 1: and what's going on with that. We're gonna dig into 28 00:01:27,440 --> 00:01:30,560 Speaker 1: the pros and cons We're gonna talk about, um how 29 00:01:30,640 --> 00:01:33,480 Speaker 1: a lot of misinformation. Of course when politics are involved, 30 00:01:33,480 --> 00:01:35,440 Speaker 1: there's a lot of misinformation that comes out. We're gonna 31 00:01:35,480 --> 00:01:38,200 Speaker 1: talk about what this misinformation is. We're gonna clear it up, 32 00:01:38,480 --> 00:01:42,600 Speaker 1: not with opinions, but with actual data and facts. Of course, 33 00:01:42,640 --> 00:01:45,120 Speaker 1: like I always do, bring in the receipts um and 34 00:01:45,160 --> 00:01:49,600 Speaker 1: then we're going to understand the differences of what happened. 35 00:01:50,000 --> 00:01:53,520 Speaker 1: They change their consensus mechanism. What does that even mean? 36 00:01:53,680 --> 00:01:55,960 Speaker 1: What is a consensus mechanism? What do they change from 37 00:01:56,160 --> 00:01:57,920 Speaker 1: proof of work to proof of stake? What are the 38 00:01:57,920 --> 00:01:59,560 Speaker 1: differences of those two? What are the tradeoffs? What are 39 00:01:59,560 --> 00:02:03,440 Speaker 1: the pros and cons of each of those? Look, everything 40 00:02:03,600 --> 00:02:07,400 Speaker 1: in life has a trade off that's it, right, There's 41 00:02:07,440 --> 00:02:09,160 Speaker 1: no such thing as a free lunch. In order to 42 00:02:09,200 --> 00:02:11,120 Speaker 1: get more of one thing, you must give up more 43 00:02:11,160 --> 00:02:15,200 Speaker 1: of another. We're gonna dig into that understanding that um 44 00:02:15,240 --> 00:02:17,200 Speaker 1: and uh and more. We got a lot to cover, 45 00:02:17,480 --> 00:02:20,440 Speaker 1: so let's go ahead and just jump right into it. 46 00:02:20,520 --> 00:02:22,400 Speaker 1: So what we're talking about is Ethereum, like I said, 47 00:02:22,400 --> 00:02:26,800 Speaker 1: the second largest cryptocurrency by market cap and uh, you 48 00:02:26,840 --> 00:02:29,160 Speaker 1: know everyone we've been talking about for years, this merge 49 00:02:29,240 --> 00:02:33,800 Speaker 1: is going to happen. Um. Ethereum runs on a consensus mechanism, 50 00:02:33,880 --> 00:02:37,560 Speaker 1: just like Bitcoin, something called proof of work. We're gonna 51 00:02:37,560 --> 00:02:39,680 Speaker 1: dig more into what proof of work is, and they've 52 00:02:39,760 --> 00:02:44,799 Speaker 1: now transitioned their consensus mechanism into proof of steak. Now 53 00:02:44,840 --> 00:02:47,160 Speaker 1: you might be going, what the heck is consensus mechanism 54 00:02:47,360 --> 00:02:48,920 Speaker 1: and what the heck is proof of work and proof 55 00:02:48,919 --> 00:02:51,680 Speaker 1: of steak. Don't worry, I'm gonna cover all that for you. 56 00:02:51,720 --> 00:02:53,840 Speaker 1: So we understand what the consensus mechanism is, well, let 57 00:02:53,880 --> 00:02:55,799 Speaker 1: me just let me hit the consensus mechanism real quick. 58 00:02:55,840 --> 00:02:58,840 Speaker 1: We won't dig into the differences yet. Consensus mechanism. So 59 00:02:59,600 --> 00:03:04,800 Speaker 1: UM I talked about the decentralized revolution, politics, finance, and technology. 60 00:03:04,840 --> 00:03:09,680 Speaker 1: The technology being bitcoin being cryptocurrencies. Bitcoin runs on a 61 00:03:09,760 --> 00:03:14,000 Speaker 1: proof of work consensus mechanism. Ethereum has been running on 62 00:03:14,040 --> 00:03:16,160 Speaker 1: a proof of work consensus mechanism. What does that mean 63 00:03:16,200 --> 00:03:21,079 Speaker 1: consensus mechanism. Well, up until now, up until this technological 64 00:03:21,160 --> 00:03:26,040 Speaker 1: revolution that we have happening right now, we have centralized databases. 65 00:03:26,120 --> 00:03:28,760 Speaker 1: So um, pretty much every website you go to Twitter, 66 00:03:29,160 --> 00:03:32,040 Speaker 1: Twitter runs their database, their centralized database in a building. 67 00:03:32,200 --> 00:03:36,760 Speaker 1: Facebook centralized database, Google centralized database, meaning there's one database 68 00:03:36,880 --> 00:03:40,480 Speaker 1: at Google headquarters or Amazon headquarters or wherever you want 69 00:03:40,480 --> 00:03:42,840 Speaker 1: to call it, and there's one database and it has 70 00:03:42,880 --> 00:03:47,120 Speaker 1: all the data. And so if if hacker wanted to 71 00:03:47,160 --> 00:03:51,080 Speaker 1: hack it, like Experience, the Experience database, the credit monitoring database, UM, 72 00:03:51,080 --> 00:03:53,880 Speaker 1: it's a giant honeypot um. If if an attacker can 73 00:03:53,960 --> 00:03:56,160 Speaker 1: get that, they get all those users data all there, 74 00:03:56,280 --> 00:03:58,880 Speaker 1: you know, all the credit information, so security information. Mother's 75 00:03:58,880 --> 00:04:01,440 Speaker 1: made name all that data the honeypot end people have 76 00:04:01,760 --> 00:04:04,960 Speaker 1: experience with hacked, the largest hack in data breach I 77 00:04:04,960 --> 00:04:07,600 Speaker 1: think in American history at the time. And so the 78 00:04:07,680 --> 00:04:12,360 Speaker 1: centralized databases UM have lots of problems. UM, Like, for example, 79 00:04:12,400 --> 00:04:15,280 Speaker 1: if Twitter wants to shut you off and delete your 80 00:04:15,400 --> 00:04:18,240 Speaker 1: entire history or Facebook UM as we see that happening 81 00:04:18,240 --> 00:04:20,720 Speaker 1: more and more and more. Um if Amazon doesn't want 82 00:04:20,760 --> 00:04:23,440 Speaker 1: you to have your listings on their um etcetera. And 83 00:04:23,480 --> 00:04:26,320 Speaker 1: so there's a lot of problems with that, with that centralization. 84 00:04:26,440 --> 00:04:30,600 Speaker 1: So one censorship can come with centralization if one person 85 00:04:30,720 --> 00:04:33,720 Speaker 1: controls that ledger. Think about it like a ledger. So 86 00:04:33,760 --> 00:04:37,560 Speaker 1: a ledger is basically a sheet of paper, or in 87 00:04:37,680 --> 00:04:41,159 Speaker 1: today's age, it's a database that keeps track of inputs 88 00:04:41,200 --> 00:04:44,440 Speaker 1: and outputs your bank account. There's really no money in 89 00:04:44,480 --> 00:04:47,760 Speaker 1: that bank account, right they just the bank keeps a ledger. Again, 90 00:04:47,800 --> 00:04:50,039 Speaker 1: and so a bank has a centralized database. The bank 91 00:04:50,200 --> 00:04:54,600 Speaker 1: is responsible to keep up their their ledger, which is 92 00:04:54,640 --> 00:04:57,400 Speaker 1: in a database, which is in a computer, and it's centralized. 93 00:04:57,560 --> 00:05:00,400 Speaker 1: They control it. I have no control over the day dtabase. 94 00:05:00,720 --> 00:05:03,680 Speaker 1: Only the bank, Wells Fargo, Bank of America, etcetera. Only 95 00:05:03,720 --> 00:05:05,640 Speaker 1: they have control of the ledger. And so when I 96 00:05:05,800 --> 00:05:11,400 Speaker 1: deposit money, they get the hypothetical pen and add money 97 00:05:11,440 --> 00:05:14,400 Speaker 1: to my ledger. And when I remove money, they cross 98 00:05:14,480 --> 00:05:16,479 Speaker 1: it out and they remove it out of my ledger. 99 00:05:16,680 --> 00:05:19,080 Speaker 1: And they keep track of who has what in their account. 100 00:05:19,200 --> 00:05:21,200 Speaker 1: If I want to transfer money to you, they create, 101 00:05:21,320 --> 00:05:23,680 Speaker 1: they cross it off of my ledger and they add 102 00:05:23,720 --> 00:05:26,359 Speaker 1: it to your ledger. Right, So all databases think of 103 00:05:26,400 --> 00:05:29,520 Speaker 1: them like a ledger, and so whoever controls that ledger 104 00:05:29,560 --> 00:05:33,680 Speaker 1: has complete control. And then they could manipulate things, right, 105 00:05:33,720 --> 00:05:36,800 Speaker 1: they could change things. Um, they could just decide to 106 00:05:37,160 --> 00:05:39,280 Speaker 1: cross off that I have the assets and just give 107 00:05:39,320 --> 00:05:41,080 Speaker 1: them to them. Even if that's not true. There's a 108 00:05:41,120 --> 00:05:42,960 Speaker 1: lot of problems that could come from that. Again, like 109 00:05:42,960 --> 00:05:45,160 Speaker 1: I said, there's this honey pot where people would want 110 00:05:45,160 --> 00:05:47,880 Speaker 1: to attack it and get it. So the revolution that 111 00:05:47,920 --> 00:05:52,360 Speaker 1: we have is a decentralized database. So what does that mean? 112 00:05:52,560 --> 00:05:57,360 Speaker 1: So instead of one database that one entity controls one ledger, right, 113 00:05:57,480 --> 00:06:00,360 Speaker 1: wells Fargo or Facebook or whatever. Instead of one now 114 00:06:00,400 --> 00:06:05,880 Speaker 1: there's many, there's hundreds of thousands, there's millions of databases, 115 00:06:05,920 --> 00:06:11,760 Speaker 1: and they are all exact duplicates, all exact copies, and 116 00:06:11,839 --> 00:06:16,000 Speaker 1: not nobody controls it, not one entity has control over it. 117 00:06:17,000 --> 00:06:19,400 Speaker 1: And so what has to happen is in order for 118 00:06:19,440 --> 00:06:22,080 Speaker 1: a transaction to be valid, if I wanted to transfer 119 00:06:22,160 --> 00:06:25,440 Speaker 1: money or whatever data I have from me my side 120 00:06:25,480 --> 00:06:29,560 Speaker 1: to your side, instead of one central entity crossing it 121 00:06:29,600 --> 00:06:32,440 Speaker 1: off on my ledger at it'sier Ledger instead. What has 122 00:06:32,480 --> 00:06:35,680 Speaker 1: to happen is all the databases out there have to 123 00:06:35,720 --> 00:06:40,080 Speaker 1: achieve consensus, meaning they all have to agree. The majority 124 00:06:40,200 --> 00:06:44,000 Speaker 1: has to agree over has to agree that this transaction 125 00:06:44,279 --> 00:06:47,000 Speaker 1: is valid. Now, how the heck does that happen? Well, 126 00:06:47,040 --> 00:06:49,880 Speaker 1: it's a technological advancement, and we're going to dig into 127 00:06:49,920 --> 00:06:52,839 Speaker 1: the details of that. But right now, that type of 128 00:06:52,880 --> 00:06:55,640 Speaker 1: consensus has been done one way through what's called proof 129 00:06:55,640 --> 00:06:58,160 Speaker 1: of work, and Ethereum changed it. We're gonna go through 130 00:06:58,200 --> 00:07:00,160 Speaker 1: the pros and cons and I'm gonna explain what those are, 131 00:07:00,200 --> 00:07:02,360 Speaker 1: so don't worry. We're gonna get to that. But before 132 00:07:02,360 --> 00:07:04,680 Speaker 1: we dig into that, we're gonna talk about what this 133 00:07:04,760 --> 00:07:10,400 Speaker 1: is really meaning and what why the political um engine 134 00:07:10,560 --> 00:07:12,720 Speaker 1: is getting behind this. And so we're gonna break it 135 00:07:12,760 --> 00:07:16,160 Speaker 1: down from a from the United States viewpoint, We're gonna 136 00:07:16,160 --> 00:07:17,680 Speaker 1: look at it from the West, the world, that kind 137 00:07:17,720 --> 00:07:21,119 Speaker 1: of form viewpoint. Everybody has something to say, So let's 138 00:07:21,160 --> 00:07:23,720 Speaker 1: start with this article right here. Um the merge is 139 00:07:23,760 --> 00:07:31,280 Speaker 1: a step in the right direction to address cryptos energy problem. Mhmm, okay, 140 00:07:31,720 --> 00:07:38,160 Speaker 1: so everybody's excited. Everybody's praising Ethereum's move because it uses 141 00:07:38,400 --> 00:07:41,800 Speaker 1: less energy, it says. It says actually to address cryptos 142 00:07:41,880 --> 00:07:46,440 Speaker 1: energy usage. So all of a sudden, now using energy 143 00:07:46,600 --> 00:07:49,760 Speaker 1: is a problem. That's pretty interesting. The whole world runs 144 00:07:49,760 --> 00:07:54,600 Speaker 1: off of energy. Um, you're able to listen to me 145 00:07:54,720 --> 00:07:59,000 Speaker 1: right now because of energy, whether your computers plugged into 146 00:07:59,040 --> 00:08:02,440 Speaker 1: the wall, or it's running off your car engines battery 147 00:08:02,680 --> 00:08:04,920 Speaker 1: or wherever you're at, wherever you're listening to this, you 148 00:08:04,960 --> 00:08:08,040 Speaker 1: have electricity. You have energy. The whole world runs off electricity. 149 00:08:08,080 --> 00:08:12,720 Speaker 1: But now it's okay to use energy for these use cases. 150 00:08:12,760 --> 00:08:15,760 Speaker 1: But it's not okay to use energy for these use cases. 151 00:08:15,800 --> 00:08:17,760 Speaker 1: It's pretty weird. We're gonna dig into that. So it 152 00:08:17,800 --> 00:08:22,960 Speaker 1: says here the CFTC Commodities Future Exchange, they manage their 153 00:08:23,160 --> 00:08:26,800 Speaker 1: responsible for regulating commodities in the United States. The chair 154 00:08:27,880 --> 00:08:31,600 Speaker 1: said that etherorem blockchain transition to proof of steak, despite 155 00:08:31,640 --> 00:08:37,160 Speaker 1: reducing energy usage by more, may not go far enough. 156 00:08:38,320 --> 00:08:42,720 Speaker 1: So they've reduced introduced and that may not be enough, 157 00:08:42,880 --> 00:08:48,920 Speaker 1: they said. He hinted that legislation would likely still be 158 00:08:49,080 --> 00:08:54,160 Speaker 1: needed to address the problem. Legislation, so we need more laws. 159 00:08:54,480 --> 00:08:57,600 Speaker 1: If you give us more control, don't worry, we can 160 00:08:57,640 --> 00:09:00,800 Speaker 1: fix everything, right that's what he's basically same. I want 161 00:09:00,800 --> 00:09:02,160 Speaker 1: to dig more into that in a minute. You're listening 162 00:09:02,200 --> 00:09:03,719 Speaker 1: to the Mark Ma Show. If you're just tuning in, 163 00:09:03,760 --> 00:09:05,480 Speaker 1: thank you the Mark Ma Show. We talk about the 164 00:09:05,480 --> 00:09:08,400 Speaker 1: decentralized revolution, the way the world is changing right before 165 00:09:08,400 --> 00:09:11,520 Speaker 1: our very eyes, through the lens of politics, finance, and technology. 166 00:09:11,559 --> 00:09:14,200 Speaker 1: And today we're digging deep into all three of those 167 00:09:14,280 --> 00:09:17,280 Speaker 1: with this giant story. And I'm gonna tell you everything 168 00:09:17,280 --> 00:09:19,160 Speaker 1: you need to know about this, what the pros and 169 00:09:19,200 --> 00:09:21,400 Speaker 1: cons are, what this means for you, what it means 170 00:09:21,400 --> 00:09:24,520 Speaker 1: for the climate, for the energy energy crisis, all these 171 00:09:24,559 --> 00:09:26,520 Speaker 1: other things. We've got a lot to cover this hour. 172 00:09:27,200 --> 00:09:29,160 Speaker 1: I'm gonna try and go through fast. You do not 173 00:09:29,320 --> 00:09:31,160 Speaker 1: want to miss this, so don't go away. I'm gonna 174 00:09:31,200 --> 00:09:33,360 Speaker 1: be right back. All right, Welcome back. You are listening 175 00:09:33,400 --> 00:09:35,560 Speaker 1: to the Mark Ma Show. We're talking about, of course, 176 00:09:35,559 --> 00:09:39,079 Speaker 1: the same thing each and every week, the decentralized revolution. 177 00:09:39,120 --> 00:09:40,959 Speaker 1: Of course we don't talk about it exactly the same 178 00:09:41,000 --> 00:09:43,120 Speaker 1: We talk about it through the lens of politics, finance, 179 00:09:43,120 --> 00:09:45,880 Speaker 1: and technology. What's shaping up, And today we're talking about 180 00:09:46,160 --> 00:09:48,600 Speaker 1: something that bridges all three of those at the same time. 181 00:09:48,640 --> 00:09:52,559 Speaker 1: We're talking about the Ethereum merge big big news this week. 182 00:09:52,559 --> 00:09:54,120 Speaker 1: I'm gonna cover everything you need to know about this. 183 00:09:54,200 --> 00:09:58,920 Speaker 1: So um back to what ross Burnham said. He's the 184 00:09:59,000 --> 00:10:04,080 Speaker 1: chair of the United States Commodities Future Trading Commission, the CFTC. 185 00:10:04,400 --> 00:10:08,559 Speaker 1: They're the ones that regulate cryptocurrencies because they are commodities, 186 00:10:08,800 --> 00:10:14,400 Speaker 1: except for proof of steak cryptocurrencies, which are supposedly securities, 187 00:10:14,440 --> 00:10:17,840 Speaker 1: which would actually fall under Gary Gensler in the sec anyway, 188 00:10:17,920 --> 00:10:20,439 Speaker 1: let's not dig into that. So, according to ross Burnham, 189 00:10:20,679 --> 00:10:24,360 Speaker 1: he says that the Ethereum blockchain's transition from proof of 190 00:10:24,400 --> 00:10:29,160 Speaker 1: steak two are too Proof of steak may help reduce 191 00:10:29,160 --> 00:10:34,560 Speaker 1: crypto's energy usage, but he hinted that legislation would likely 192 00:10:34,600 --> 00:10:37,080 Speaker 1: still be needed to address the problem. We still need 193 00:10:37,160 --> 00:10:40,320 Speaker 1: more power and control. It's always the answer, right, The 194 00:10:40,360 --> 00:10:43,120 Speaker 1: government's answer to everything is just give us more power 195 00:10:43,120 --> 00:10:44,720 Speaker 1: and control. If you give us the power and control, 196 00:10:44,760 --> 00:10:49,280 Speaker 1: we can fix everything. Right. Yeah. So, speaking at a 197 00:10:49,360 --> 00:10:52,320 Speaker 1: Thursday meeting, Ben him addressed a question from Minnesota Senator 198 00:10:52,360 --> 00:10:56,640 Speaker 1: Amy Kloboucher, who brought up the environmental impact of the 199 00:10:56,760 --> 00:11:03,520 Speaker 1: quote significant energy significant. Oh, it's so significant. The CFTC 200 00:11:03,720 --> 00:11:06,440 Speaker 1: chair said that the crypto bill currently being considered the 201 00:11:06,440 --> 00:11:08,640 Speaker 1: new laws. Again, if you just give us more power, 202 00:11:09,080 --> 00:11:14,160 Speaker 1: the new bill being considered by lawmakers. So think about 203 00:11:14,200 --> 00:11:18,560 Speaker 1: that term lawmakers. That's what they're called. They're called lawmakers. 204 00:11:19,000 --> 00:11:22,520 Speaker 1: So what do they do? Oh, they make laws. So 205 00:11:22,600 --> 00:11:25,360 Speaker 1: their whole role, their whole job is to sit there 206 00:11:25,400 --> 00:11:29,880 Speaker 1: all day and make new laws. And we got lots 207 00:11:29,920 --> 00:11:32,320 Speaker 1: of them. We got hundreds of them, we have thousands, 208 00:11:32,440 --> 00:11:34,280 Speaker 1: we have tens of thousands. Off you want to include 209 00:11:34,280 --> 00:11:36,480 Speaker 1: the administrative state that's on top of that um and 210 00:11:36,520 --> 00:11:40,320 Speaker 1: so considered by lawmakers whose job it is to do 211 00:11:40,400 --> 00:11:43,240 Speaker 1: what make laws. If they're not making laws, then they're 212 00:11:43,240 --> 00:11:48,000 Speaker 1: not doing a good job. So let's just keep making laws. Okay. Anyway, 213 00:11:48,440 --> 00:11:52,520 Speaker 1: lawmakers would require a report so you know, more work. 214 00:11:52,559 --> 00:11:54,280 Speaker 1: Now business have to do more work. They have to 215 00:11:54,280 --> 00:11:56,640 Speaker 1: fill up more paperwork, which increased their costs, have to 216 00:11:56,720 --> 00:11:58,880 Speaker 1: hire people to do that. If businesses costs go up, 217 00:11:58,880 --> 00:12:01,040 Speaker 1: then what happens. That's right, you as a consumer pay more. 218 00:12:01,320 --> 00:12:04,000 Speaker 1: So it would require report on energy usage that could 219 00:12:04,120 --> 00:12:08,319 Speaker 1: lead to future policy discussions or lead to more laws 220 00:12:08,440 --> 00:12:15,000 Speaker 1: and quote incentives to move away from carbon intensive energy sources. 221 00:12:15,080 --> 00:12:17,480 Speaker 1: Remember that we're gonna come back to that. Okay, move 222 00:12:17,520 --> 00:12:23,240 Speaker 1: away from carbon intensive energy sources, all right, Um, but 223 00:12:23,600 --> 00:12:25,120 Speaker 1: put a pin in that. We're gonna we're gonna come 224 00:12:25,120 --> 00:12:29,560 Speaker 1: back to that because now we're talking about the environment, right, 225 00:12:29,840 --> 00:12:31,760 Speaker 1: that's what they're talking about. They're talking about the energy. 226 00:12:32,200 --> 00:12:36,760 Speaker 1: It's too much energy. Um, it's uh significant energy, is 227 00:12:36,760 --> 00:12:39,920 Speaker 1: what they said. Quote significant energy. And we need to 228 00:12:39,960 --> 00:12:42,559 Speaker 1: have more laws. We need more power and need more 229 00:12:42,600 --> 00:12:47,520 Speaker 1: control to move away from carbon intensive energy sources. So 230 00:12:47,920 --> 00:12:49,280 Speaker 1: they're saying that we need to get away from this 231 00:12:49,280 --> 00:12:52,320 Speaker 1: because it's carbon intensive and it just uses too much energy. Well, 232 00:12:52,320 --> 00:12:55,120 Speaker 1: what's too much energy? I'd like I'd like someone to 233 00:12:55,160 --> 00:12:59,880 Speaker 1: answer that question. That's always the problem with government is, um, hey, 234 00:13:00,240 --> 00:13:02,600 Speaker 1: this speech is okay, but this type of speech is 235 00:13:02,640 --> 00:13:07,520 Speaker 1: not okay. Well, who draws that line? And where is 236 00:13:07,559 --> 00:13:09,800 Speaker 1: that line? And like I said, who draws it? And 237 00:13:09,840 --> 00:13:14,240 Speaker 1: are they able to just move that line? We have 238 00:13:14,400 --> 00:13:18,160 Speaker 1: hate speech? Well, who defines what hates speeches? Who defines it? 239 00:13:18,360 --> 00:13:20,200 Speaker 1: And I get it? Like, that's the ridiculous argument I'm 240 00:13:20,200 --> 00:13:23,760 Speaker 1: gonna make. So you're gonna hate me. But my daughter 241 00:13:23,840 --> 00:13:26,920 Speaker 1: hates bananas. So if we talk about bananas, is that 242 00:13:26,960 --> 00:13:30,560 Speaker 1: hate speech? And I know that's ridiculous, but that's the point. 243 00:13:31,160 --> 00:13:35,720 Speaker 1: Who defines what hates speeches, Who defines what a good 244 00:13:35,840 --> 00:13:40,439 Speaker 1: use or bad use of energy is? Who defines Oh, 245 00:13:40,480 --> 00:13:42,040 Speaker 1: of course they want to be the arbitrat of truth. 246 00:13:42,280 --> 00:13:44,040 Speaker 1: But that line is always moving. So we want to 247 00:13:44,040 --> 00:13:46,240 Speaker 1: move away from carbon intensive energy sources. Okay, so let's 248 00:13:46,320 --> 00:13:50,440 Speaker 1: keep digging it. So it's all about the climate, so um. 249 00:13:50,760 --> 00:13:56,600 Speaker 1: Environmental groups now have pledged to spend another, not the first, 250 00:13:56,640 --> 00:14:03,200 Speaker 1: another million dollars on ads for bitcoin code to change. 251 00:14:03,679 --> 00:14:06,720 Speaker 1: So the quote change the code, not the climate. Campaign 252 00:14:07,000 --> 00:14:10,040 Speaker 1: is upp in its efforts. Following Ethereum's switched to proof 253 00:14:10,080 --> 00:14:12,839 Speaker 1: of steak. So ethereum has moved from proof of work 254 00:14:12,880 --> 00:14:15,280 Speaker 1: to proof of steak. Lawmakers are saying, hey, that's good, 255 00:14:15,320 --> 00:14:18,839 Speaker 1: you reduced your energy used by but you should reduce 256 00:14:18,920 --> 00:14:21,320 Speaker 1: it even more. It's not enough. We probably knew new laws. 257 00:14:21,600 --> 00:14:23,520 Speaker 1: And at the same time we have this group of 258 00:14:23,520 --> 00:14:27,760 Speaker 1: people now spending millions of dollars to try to get 259 00:14:27,920 --> 00:14:31,520 Speaker 1: bitcoin to change its code two, from proof of work 260 00:14:31,560 --> 00:14:33,560 Speaker 1: to proof of steak. Don't worry, we're gonna cover what 261 00:14:33,600 --> 00:14:35,720 Speaker 1: proof of steak and proof of work are? What those mean? 262 00:14:36,000 --> 00:14:37,680 Speaker 1: The pros and cons of each. Don't worry. We're gonna 263 00:14:37,680 --> 00:14:40,200 Speaker 1: get into that. But I want to start here. So 264 00:14:40,360 --> 00:14:43,200 Speaker 1: environmental groups pled to spend another million on online ads 265 00:14:43,200 --> 00:14:45,720 Speaker 1: to pressure the Bitcoin community change the network's code. It 266 00:14:45,800 --> 00:14:49,200 Speaker 1: will never happen. It will never happen. And you're gonna 267 00:14:49,240 --> 00:14:51,320 Speaker 1: understand why. When I talk about the differences of proof 268 00:14:51,360 --> 00:14:56,400 Speaker 1: of work and proof of steak um, again we've taught 269 00:14:56,440 --> 00:15:00,800 Speaker 1: we started with the ledger, a centralized database. Who controls 270 00:15:00,880 --> 00:15:04,120 Speaker 1: the database, who controls the ledger, can change it anyway 271 00:15:04,160 --> 00:15:08,240 Speaker 1: they want. I have no say in how Facebook or 272 00:15:08,280 --> 00:15:11,480 Speaker 1: Experience or Wells Fargo runs their database, what they add, 273 00:15:11,480 --> 00:15:13,600 Speaker 1: what they don't. I have no say if they want 274 00:15:13,600 --> 00:15:17,240 Speaker 1: to change their software the bank, whatever software banks use, 275 00:15:17,320 --> 00:15:19,880 Speaker 1: like Cobalt software, they've been using it for decades um. 276 00:15:19,960 --> 00:15:22,160 Speaker 1: If they want to update their software to a different 277 00:15:22,160 --> 00:15:25,520 Speaker 1: type of software, I have no saying that. If Facebook, 278 00:15:25,640 --> 00:15:27,640 Speaker 1: you know, built their database on I don't know, one 279 00:15:27,680 --> 00:15:29,880 Speaker 1: type of code, Java script, I don't know, and now 280 00:15:29,880 --> 00:15:31,600 Speaker 1: they want to change it to Python code or whatever, 281 00:15:31,640 --> 00:15:33,360 Speaker 1: I have no saying that. You don't have any saying 282 00:15:33,360 --> 00:15:39,520 Speaker 1: that it's up to them, right, But that's essential entity. Right. 283 00:15:39,600 --> 00:15:45,840 Speaker 1: The difference is that decentralized is that nobody controls the database, 284 00:15:46,040 --> 00:15:50,840 Speaker 1: nobody has control or power. So with bitcoin being decentralized, 285 00:15:50,880 --> 00:15:53,440 Speaker 1: if nobody has control of it, who's going to change 286 00:15:53,440 --> 00:15:56,960 Speaker 1: the code? And if you said, if you said, well, 287 00:15:57,000 --> 00:16:00,000 Speaker 1: there's nobody changed, good, then you would be right. Only 288 00:16:00,720 --> 00:16:03,840 Speaker 1: essential entity can decide to do that a decentralized So 289 00:16:03,840 --> 00:16:07,080 Speaker 1: they're going to have to get the hundreds of millions 290 00:16:07,080 --> 00:16:11,120 Speaker 1: of Bitcoin users to all come together and achieve fifty 291 00:16:11,200 --> 00:16:13,680 Speaker 1: one of that vote, and somehow that code is gonna 292 00:16:13,680 --> 00:16:17,200 Speaker 1: be changed. Yeah, right, Okay, we're gonna don't worry. Were 293 00:16:17,200 --> 00:16:18,880 Speaker 1: gonna get more into that in a minute. So they're 294 00:16:18,880 --> 00:16:22,080 Speaker 1: wasting their money, They're burning millions of dollars. Wouldn't they 295 00:16:22,200 --> 00:16:24,520 Speaker 1: be better off just using those millions of dollars for 296 00:16:24,720 --> 00:16:27,480 Speaker 1: any number of other things like feeding the starving children 297 00:16:27,480 --> 00:16:30,240 Speaker 1: in Africa or coming up with new energy sources or 298 00:16:30,280 --> 00:16:33,800 Speaker 1: something like that. So UM, after the Ethereum blockchain, which 299 00:16:33,840 --> 00:16:36,520 Speaker 1: is the world's second largest cryptocurrency, as I said, changes 300 00:16:36,560 --> 00:16:39,320 Speaker 1: consensus mechanism from proof of work to proof of steak 301 00:16:39,640 --> 00:16:43,840 Speaker 1: POW or po S will abbreviate that doing away the 302 00:16:43,880 --> 00:16:47,720 Speaker 1: need for energy intensive computing power. UM now it says 303 00:16:47,720 --> 00:16:52,560 Speaker 1: ethereums energy efficient merge leaves Bitcoin as the loan cryptocurrency 304 00:16:52,560 --> 00:16:56,920 Speaker 1: climate polluter. So now that's what they're saying with the 305 00:16:57,080 --> 00:17:02,120 Speaker 1: millions of dollars um misinformation action campaign. Um there it 306 00:17:02,240 --> 00:17:06,680 Speaker 1: leaves big when is the loan cryptocurrency climate polluter? Now 307 00:17:06,760 --> 00:17:09,000 Speaker 1: let me just let me just be clear here. This 308 00:17:09,119 --> 00:17:14,400 Speaker 1: is straight up propaganda and it's misinformation. Now this comes 309 00:17:14,400 --> 00:17:19,399 Speaker 1: from Greenpeace, the company that you know sells diesel burning 310 00:17:19,560 --> 00:17:23,520 Speaker 1: boats all over the ocean to you know, go after 311 00:17:23,880 --> 00:17:26,320 Speaker 1: all types of people. Oh and of course Ripple co 312 00:17:26,400 --> 00:17:29,840 Speaker 1: founder Chris Larson. So Ripple is of course a proof 313 00:17:29,840 --> 00:17:31,720 Speaker 1: of stake blockchain that's trying to get in bed with 314 00:17:31,720 --> 00:17:34,359 Speaker 1: the government. So of course they're going to attack their competitors. 315 00:17:34,400 --> 00:17:36,560 Speaker 1: Of course why wouldn't they. All right, you're listening to 316 00:17:36,560 --> 00:17:39,840 Speaker 1: the Mark Moa show. We're talking about the ethery emerge 317 00:17:39,880 --> 00:17:42,800 Speaker 1: that just happened. Of course, we're talking about the decentralized revolution. 318 00:17:42,880 --> 00:17:44,840 Speaker 1: Each and every week, I want to talk to you 319 00:17:45,160 --> 00:17:47,920 Speaker 1: exactly why this is misinformation. I'm gonna come and bring 320 00:17:47,960 --> 00:17:52,919 Speaker 1: you the exact data, the exact facts. If you're not driving, 321 00:17:52,920 --> 00:17:54,760 Speaker 1: you might want to write these down because you might 322 00:17:54,800 --> 00:17:56,600 Speaker 1: want to repeat these to somebody else. You look like 323 00:17:56,640 --> 00:17:59,280 Speaker 1: the smartest person in the room. This is misinformation. I'm 324 00:17:59,280 --> 00:18:01,840 Speaker 1: going to give you the the exact information you need, 325 00:18:01,920 --> 00:18:04,520 Speaker 1: so you don't want to go away at least stick 326 00:18:04,560 --> 00:18:06,359 Speaker 1: around for this next segment. I gotta take a break. 327 00:18:06,640 --> 00:18:09,919 Speaker 1: I'll be back in just a minute with more, So 328 00:18:09,960 --> 00:18:12,359 Speaker 1: don't go away. We're back, all right, Welcome back. You 329 00:18:12,359 --> 00:18:14,920 Speaker 1: are listening to the Markmas Show. We talk about each 330 00:18:14,920 --> 00:18:17,280 Speaker 1: and every week the decentralized revolution, the way the world 331 00:18:17,359 --> 00:18:21,000 Speaker 1: is changing from centralization to decentralization. Today we are talking 332 00:18:21,080 --> 00:18:25,440 Speaker 1: about the Ethereum merge and how Ethereum, the second largest 333 00:18:25,440 --> 00:18:28,840 Speaker 1: cryptocurrency by market CAPP, moved from a proof of work 334 00:18:29,000 --> 00:18:33,399 Speaker 1: POW consensus to a proof of steak consensus POS. We 335 00:18:33,400 --> 00:18:35,600 Speaker 1: haven't got into the differences of those yet, so hang tight. 336 00:18:35,840 --> 00:18:37,120 Speaker 1: But what I want to talk about here is we're 337 00:18:37,119 --> 00:18:39,680 Speaker 1: talking about this leading up to this pressure of the government, 338 00:18:40,040 --> 00:18:42,959 Speaker 1: these pressure of these uh, these activists, and we need 339 00:18:43,000 --> 00:18:47,199 Speaker 1: to change the consensus mechanism because it uses too much energy. Whatever, 340 00:18:47,200 --> 00:18:49,879 Speaker 1: too much energy means. Too much energy means something different 341 00:18:49,920 --> 00:18:52,560 Speaker 1: to me than it does to you. So that's the point. Um, 342 00:18:52,560 --> 00:18:56,480 Speaker 1: It's being attacked by UM their competitors, and it's being 343 00:18:56,480 --> 00:18:59,720 Speaker 1: attacked with misinformation. And I'm I know that's the word. 344 00:18:59,720 --> 00:19:01,880 Speaker 1: It's around a lot, but I am going to actually 345 00:19:02,200 --> 00:19:05,159 Speaker 1: tell you the data behind this mis information. So to 346 00:19:05,200 --> 00:19:09,760 Speaker 1: their point, they said, here ethereums, and this is their quote, UM, 347 00:19:09,840 --> 00:19:13,040 Speaker 1: the Environmental Working Group e w G. They said they're 348 00:19:13,040 --> 00:19:15,520 Speaker 1: spending millions of dollars to lobby this. They said, ethereums 349 00:19:15,600 --> 00:19:20,360 Speaker 1: energy efficient merge leaves bitcoin as the loan cryptocurrency climate 350 00:19:20,480 --> 00:19:25,200 Speaker 1: polluter end quote. So, first of all, Bitcoin and the mind, 351 00:19:25,240 --> 00:19:27,720 Speaker 1: the proof of work consensus, and the computers that run 352 00:19:27,760 --> 00:19:31,920 Speaker 1: to power that do not emit carbon. So we'll just 353 00:19:31,960 --> 00:19:35,080 Speaker 1: say that right off the bat. The computers running do 354 00:19:35,160 --> 00:19:37,960 Speaker 1: not emit any carbon. And that's a whole another conversation 355 00:19:38,000 --> 00:19:39,720 Speaker 1: about carbon anyway, but I'm not gonna get into that 356 00:19:39,840 --> 00:19:41,920 Speaker 1: right now, so I'll just repeat that one more time 357 00:19:41,920 --> 00:19:45,080 Speaker 1: for the people in the back. The mining computers, the bitcoin, 358 00:19:45,160 --> 00:19:49,000 Speaker 1: the proof of work computers running do not emit carbon. 359 00:19:49,080 --> 00:19:51,240 Speaker 1: So they call it the climate polluters. Okay, well I 360 00:19:51,240 --> 00:19:53,239 Speaker 1: don't know how they don't. They don't emit anything. Now 361 00:19:53,280 --> 00:19:56,919 Speaker 1: let's dig into some of the data, all right, what 362 00:19:57,040 --> 00:20:00,560 Speaker 1: is the data actually say, um, the data, it says. 363 00:20:00,880 --> 00:20:03,080 Speaker 1: One of the one of the proponents of this, or 364 00:20:03,160 --> 00:20:05,880 Speaker 1: one of the people pushing back is Michael Sailor. Um. 365 00:20:05,920 --> 00:20:10,960 Speaker 1: He's a big outspoken proponent. He says that um pow 366 00:20:11,040 --> 00:20:14,120 Speaker 1: proof of work. Bitcoin mining isn't uh where they say 367 00:20:14,160 --> 00:20:16,879 Speaker 1: that it's a polluter. He says that it's the cleanest 368 00:20:17,080 --> 00:20:21,360 Speaker 1: industrial use of electricity, and it's improving its energy efficiency 369 00:20:21,480 --> 00:20:25,440 Speaker 1: at the fastest rate across any major industry. As a 370 00:20:25,480 --> 00:20:30,080 Speaker 1: matter of fact, the data shows fifty nine point five 371 00:20:30,160 --> 00:20:36,880 Speaker 1: percent called six sixty percent of the energy four bitcoin 372 00:20:36,960 --> 00:20:42,680 Speaker 1: mining comes from sustainable sources and the energy efficiency has 373 00:20:42,760 --> 00:20:46,639 Speaker 1: improved forty six percent year over year. So back to 374 00:20:46,760 --> 00:20:50,840 Speaker 1: this quote. Here this misinformation. Um, it's the loan, it's 375 00:20:50,840 --> 00:20:54,040 Speaker 1: the loan, climate polluter, that's whether those are the words 376 00:20:54,080 --> 00:20:56,960 Speaker 1: climate polluter. Well, again, the computers do not emit any carbon. 377 00:20:57,000 --> 00:21:00,000 Speaker 1: There's no pollution coming from the computers and the inner 378 00:21:00,040 --> 00:21:05,040 Speaker 1: energy itself, sixty percent of the energy comes from renewable sources. 379 00:21:05,760 --> 00:21:08,320 Speaker 1: So how is it polluting again? Sure like to know 380 00:21:08,520 --> 00:21:11,959 Speaker 1: Bitcoin far less than energy. It's Bitcoin is far less 381 00:21:12,080 --> 00:21:20,640 Speaker 1: energy intensive than Google, Netflix, Facebook, YouTube. It uses less 382 00:21:20,760 --> 00:21:26,119 Speaker 1: energy than your clothes dryers or your dishwashers. Now, do 383 00:21:26,160 --> 00:21:27,800 Speaker 1: you need clothes dryers? I mean, can't you just hang 384 00:21:27,880 --> 00:21:29,440 Speaker 1: up your clothes in the back on a on a line. 385 00:21:29,480 --> 00:21:31,159 Speaker 1: Do you need a dishwasher? I mean, can't you just 386 00:21:31,200 --> 00:21:32,880 Speaker 1: wash them my hand? Let him dry on the countertop. 387 00:21:33,160 --> 00:21:36,359 Speaker 1: Do you need Facebook or Google or YouTube? Do you 388 00:21:36,359 --> 00:21:40,760 Speaker 1: need those? Because those aren't a waste of energy. But 389 00:21:41,040 --> 00:21:44,240 Speaker 1: somehow Bitcoin that uses way less energy than any of those, 390 00:21:44,280 --> 00:21:46,600 Speaker 1: and it's actually more energy efficient than any of those, 391 00:21:47,000 --> 00:21:48,760 Speaker 1: is a waste. And that's what I'm talking about, right 392 00:21:49,080 --> 00:21:51,639 Speaker 1: Who's to say what a waste is? One man's trash 393 00:21:51,720 --> 00:21:55,320 Speaker 1: is another man's treasure. I might consider your time spent 394 00:21:55,359 --> 00:21:58,520 Speaker 1: watching YouTube videos or playing on TikTok a waste of 395 00:21:58,680 --> 00:22:03,159 Speaker 1: time or waste of energy, but you might not. You 396 00:22:03,240 --> 00:22:06,879 Speaker 1: might like that I get my education off of YouTube. 397 00:22:06,920 --> 00:22:09,159 Speaker 1: It's not a waste of time. Now you watch, you know, 398 00:22:09,200 --> 00:22:11,160 Speaker 1: stupid video, so it's a waste of your time. It's 399 00:22:11,160 --> 00:22:13,280 Speaker 1: not a waste of energy because I got something construction 400 00:22:13,320 --> 00:22:16,960 Speaker 1: out of your Like, who's to say, who's to say? 401 00:22:17,000 --> 00:22:21,320 Speaker 1: But it's far less energy intensive the Google, Netflix, Facebook, YouTube, 402 00:22:22,000 --> 00:22:24,760 Speaker 1: it's one to two orders of magnitude less energy intensive 403 00:22:24,760 --> 00:22:31,639 Speaker 1: than the traditional twentieth century industries like airlines, logistics, retail, hospitality, 404 00:22:31,760 --> 00:22:35,320 Speaker 1: and agriculture, two orders of magnitude less than any of those. 405 00:22:37,240 --> 00:22:39,960 Speaker 1: He says it's an attempt to focus negative attention on 406 00:22:40,040 --> 00:22:44,960 Speaker 1: proof of work mining and distracts authorities from the inconvenient 407 00:22:45,080 --> 00:22:49,200 Speaker 1: truth that proof of stake crypto assets are generally unregistered 408 00:22:49,240 --> 00:22:55,000 Speaker 1: securities trading on unregulated exchanges. He says that bitcoin mining 409 00:22:55,040 --> 00:22:57,560 Speaker 1: can bring a clean, profitable and modern industry that generates 410 00:22:57,680 --> 00:23:02,000 Speaker 1: hard currency to remote locations that developing world. So let's 411 00:23:02,000 --> 00:23:03,879 Speaker 1: dig into that. So this is some opinion. Let me 412 00:23:03,880 --> 00:23:05,880 Speaker 1: give you the data. Let's get let's look at the data. 413 00:23:05,960 --> 00:23:07,920 Speaker 1: Let's look at the facts. Okay. Now this report comes 414 00:23:07,960 --> 00:23:12,879 Speaker 1: from the Global Bitcoin Mining Data Review Quarter two. Okay, 415 00:23:13,320 --> 00:23:15,840 Speaker 1: so you can look this up if you want to 416 00:23:15,840 --> 00:23:20,000 Speaker 1: look at that Global Bitcoin Mining Data Review, and they 417 00:23:20,000 --> 00:23:22,080 Speaker 1: went to all the publicly traded companies to get this 418 00:23:22,200 --> 00:23:24,600 Speaker 1: data and other ones that want to voluntarily submit it. 419 00:23:25,280 --> 00:23:27,960 Speaker 1: And let's look at the data here. So global bitcoin 420 00:23:28,040 --> 00:23:31,960 Speaker 1: mining energy use is negligible. So we just talked about that, right, 421 00:23:32,000 --> 00:23:40,280 Speaker 1: So um it uses bitcoin mining energy use is zero 422 00:23:40,480 --> 00:23:45,119 Speaker 1: point one one seven percent compared to the world's energy 423 00:23:46,480 --> 00:23:53,159 Speaker 1: zero point one negligible. It's a rounding error. Globally, bitcoin 424 00:23:53,240 --> 00:23:57,840 Speaker 1: mining has the highest level of sustainable energy, the highest. 425 00:23:58,200 --> 00:24:01,600 Speaker 1: More renewable energy is used for bitcoin mining than any 426 00:24:01,840 --> 00:24:06,399 Speaker 1: other type of energy source. It's a fifty six percent. 427 00:24:06,480 --> 00:24:09,240 Speaker 1: It's now it's actually now fifty nine point five cents. 428 00:24:09,280 --> 00:24:13,159 Speaker 1: Almost sixty of all the energy for bitcoin mining is sustainable. 429 00:24:13,480 --> 00:24:16,440 Speaker 1: But here's here's the big, big piece. Write this number down. 430 00:24:16,560 --> 00:24:18,800 Speaker 1: This is the one you want to remember. Okay, So 431 00:24:19,000 --> 00:24:22,320 Speaker 1: it's it's a waste of energy, they say, right, Well, 432 00:24:22,359 --> 00:24:24,959 Speaker 1: who's to say what a waste is? Already made that case, right, 433 00:24:25,560 --> 00:24:29,320 Speaker 1: But what what would actually be a waste? I can't 434 00:24:29,359 --> 00:24:32,480 Speaker 1: say anybody's use of anything as a waste, right, You 435 00:24:32,640 --> 00:24:35,639 Speaker 1: sitting there doing nothing for sixty minutes is a complete 436 00:24:35,640 --> 00:24:38,840 Speaker 1: waste of your time. But maybe you were doing meditation 437 00:24:38,960 --> 00:24:41,959 Speaker 1: and that's actually super important to you. Right, Who am 438 00:24:41,960 --> 00:24:44,600 Speaker 1: I to say what's a waste? But what a waste 439 00:24:44,840 --> 00:24:47,439 Speaker 1: is if I make a bunch of food and nobody 440 00:24:47,480 --> 00:24:49,720 Speaker 1: eats it, and then I have to throw it away, Well, 441 00:24:49,760 --> 00:24:51,399 Speaker 1: I guess you could say that was a waste. I 442 00:24:51,480 --> 00:24:54,800 Speaker 1: created the food and nobody ate it. So I could 443 00:24:54,800 --> 00:24:57,320 Speaker 1: have kept the food in the freezer or infrigerator. We 444 00:24:57,359 --> 00:24:59,760 Speaker 1: could have used it later when people would eat it. 445 00:25:00,000 --> 00:25:01,679 Speaker 1: But I made it. Now nobody ate it, so that 446 00:25:01,760 --> 00:25:06,840 Speaker 1: food was wasted. It was created and nobody consumed it. Right, 447 00:25:06,880 --> 00:25:08,600 Speaker 1: So I think we could I think we could agree 448 00:25:08,640 --> 00:25:12,120 Speaker 1: on that. If I like in China, they've built all 449 00:25:12,160 --> 00:25:14,680 Speaker 1: these buildings and skyscrapers and nobody uses them, and now 450 00:25:14,680 --> 00:25:17,639 Speaker 1: they're blowing them up and tearing them down. That was 451 00:25:17,720 --> 00:25:20,320 Speaker 1: a waste because they built them and they didn't get used, 452 00:25:20,359 --> 00:25:21,760 Speaker 1: and now they're tearing them back down. That was a waste. 453 00:25:21,800 --> 00:25:24,760 Speaker 1: So let's think about that for except except a minute. 454 00:25:25,600 --> 00:25:30,600 Speaker 1: So in the world, the total energy generated worldwide is 455 00:25:30,640 --> 00:25:35,760 Speaker 1: a hundred and sixty two thousand terrawat hash. I don't 456 00:25:35,760 --> 00:25:38,560 Speaker 1: know exactly what that means, but a hundred sixty thousand, okay, 457 00:25:38,600 --> 00:25:42,520 Speaker 1: almost a hundred six hundred sixty two thousand and tarawat hash. 458 00:25:42,800 --> 00:25:47,160 Speaker 1: There's energy that's lost to inefficiencies, and that's about fifty 459 00:25:47,440 --> 00:25:52,680 Speaker 1: thousand tarawa hash. And all the energy in the entire 460 00:25:52,840 --> 00:25:56,840 Speaker 1: world that's being used for bitcoin is a hundred and 461 00:25:56,880 --> 00:26:02,040 Speaker 1: eighty nine nine so out of the nine. But that 462 00:26:02,080 --> 00:26:04,600 Speaker 1: doesn't tell the whole story. Here's the part that I 463 00:26:04,640 --> 00:26:09,200 Speaker 1: want to talk about, the wasted part. So what happens is, um, 464 00:26:09,320 --> 00:26:12,200 Speaker 1: in California, you have the highest energy prices in the world. 465 00:26:12,359 --> 00:26:15,199 Speaker 1: Why because there's more demand than there is supply, so 466 00:26:15,240 --> 00:26:17,800 Speaker 1: it pushes the prices are very high in some parts 467 00:26:17,880 --> 00:26:20,800 Speaker 1: of the world. In so in California in the summer 468 00:26:21,000 --> 00:26:23,760 Speaker 1: at the peak, UH, with the tiered pricing structure as 469 00:26:23,800 --> 00:26:27,560 Speaker 1: the top, you pay over forty cents per kilowat our 470 00:26:27,720 --> 00:26:30,520 Speaker 1: forty cents. But in some parts of the world energy 471 00:26:30,640 --> 00:26:35,000 Speaker 1: is four cents or three cents. Now, why the heck 472 00:26:35,040 --> 00:26:37,200 Speaker 1: would it be three cents somewhere and when it's forty 473 00:26:37,200 --> 00:26:40,919 Speaker 1: cents in California. The reason why is because there's more 474 00:26:41,040 --> 00:26:45,600 Speaker 1: energy being created than people are using. So for example, UM, 475 00:26:45,640 --> 00:26:47,600 Speaker 1: there's places in the world where they just built this 476 00:26:47,680 --> 00:26:51,320 Speaker 1: new energy plant, but there's nobody around it yet. Eventually, 477 00:26:51,440 --> 00:26:53,480 Speaker 1: you know, towns will move in and more businesses will 478 00:26:53,480 --> 00:26:54,840 Speaker 1: set up and eventually they'll use it all. But right 479 00:26:54,840 --> 00:26:57,840 Speaker 1: now it's not being used. So they're actually creating energy 480 00:26:58,280 --> 00:27:01,080 Speaker 1: that nobody is using and it's going to waste, just 481 00:27:01,160 --> 00:27:04,000 Speaker 1: like me making the food that nobody ate and it 482 00:27:04,040 --> 00:27:09,280 Speaker 1: went to waste. So of that energy that's being created 483 00:27:09,320 --> 00:27:18,440 Speaker 1: and wasted, bitcoin consumes zero point four zero. I'm gonna 484 00:27:18,440 --> 00:27:19,879 Speaker 1: come back when give you that number. In a minute. 485 00:27:19,960 --> 00:27:21,720 Speaker 1: You're listening to the Markmas Show. I gotta take a break. 486 00:27:21,760 --> 00:27:23,640 Speaker 1: I'm gonna come back with this data. You don't want 487 00:27:23,640 --> 00:27:26,720 Speaker 1: to miss. This is gonna blow your mind. Uh, don't 488 00:27:26,720 --> 00:27:30,120 Speaker 1: go away, I'll be right back. All right, welcome back here, 489 00:27:30,160 --> 00:27:32,880 Speaker 1: listening to the Markma Show. Um, I had to had 490 00:27:32,880 --> 00:27:35,880 Speaker 1: to real abruptly. I left you on the cliffhanger. Hopefully 491 00:27:35,880 --> 00:27:38,280 Speaker 1: with the amount of data that bitcoin uses. Okay, we're 492 00:27:38,280 --> 00:27:41,240 Speaker 1: talking about the ethere emerge. We're talking about proof of 493 00:27:41,240 --> 00:27:43,600 Speaker 1: work versus proof of steak. I gotta speed it up here. 494 00:27:43,600 --> 00:27:45,239 Speaker 1: I got too much data to cover. But here we go. 495 00:27:45,560 --> 00:27:48,760 Speaker 1: So what a waste is. A waste isn't what somebody 496 00:27:48,840 --> 00:27:51,000 Speaker 1: used or somebody doesn't use. I think we could all 497 00:27:51,040 --> 00:27:53,040 Speaker 1: probably agree. A waste is if I create something and 498 00:27:53,119 --> 00:27:55,439 Speaker 1: nobody uses it. So if I made food and nobody 499 00:27:55,560 --> 00:27:57,040 Speaker 1: ate it, that was a waste of the food. But 500 00:27:57,280 --> 00:28:01,119 Speaker 1: around the world energy electricity is being created and people 501 00:28:01,200 --> 00:28:03,560 Speaker 1: don't use it. So we just built this new power 502 00:28:03,600 --> 00:28:06,239 Speaker 1: plant somewhere and not not enough demand on it, right, 503 00:28:06,520 --> 00:28:11,360 Speaker 1: So bitcoin uses. Bitcoin can only use the cheapest energy. 504 00:28:11,400 --> 00:28:13,720 Speaker 1: It can't compete in California forty cents a lot. It 505 00:28:13,800 --> 00:28:16,800 Speaker 1: has to go where there's energy nobody's using it. It 506 00:28:16,800 --> 00:28:19,280 Speaker 1: can only work off the cheapest energy, like three or 507 00:28:19,320 --> 00:28:22,840 Speaker 1: four cent power. If energies in California's forty cents, how 508 00:28:22,880 --> 00:28:25,040 Speaker 1: can they find three or four cent powers because there's 509 00:28:25,040 --> 00:28:28,520 Speaker 1: power being created that nobody is using. So the bitcoin mining, 510 00:28:28,560 --> 00:28:34,159 Speaker 1: the proof of work uses zero point four percent of 511 00:28:34,240 --> 00:28:40,400 Speaker 1: the world's wasted energy. Bitcoin doesn't compete for energy that 512 00:28:40,680 --> 00:28:43,560 Speaker 1: that people need. It can't. It can't afford to. It 513 00:28:43,640 --> 00:28:46,960 Speaker 1: can only use energy that's being created and thrown away. 514 00:28:46,960 --> 00:28:48,840 Speaker 1: It can only use the food that was cooked and 515 00:28:48,880 --> 00:28:50,560 Speaker 1: nobody ate it and it went to the trash can. 516 00:28:51,320 --> 00:28:54,240 Speaker 1: Bitcoin only can use the energy that's being wasted. It 517 00:28:54,320 --> 00:28:58,320 Speaker 1: uses zero point four percent of the energy that's being wasted. 518 00:28:58,880 --> 00:29:03,160 Speaker 1: That makes sense. So in addition, it's also finding energy 519 00:29:03,160 --> 00:29:06,680 Speaker 1: it's not even being used. So for example, um, all 520 00:29:06,720 --> 00:29:10,520 Speaker 1: throughout North America we have these oil rigs and natural 521 00:29:10,520 --> 00:29:12,760 Speaker 1: gas comes out of the ground, and they haven't been 522 00:29:12,840 --> 00:29:14,880 Speaker 1: captured the natural gas. They've been either flaring it into 523 00:29:14,920 --> 00:29:17,480 Speaker 1: the ecosystem, or flaring it, which is lightning on fire, 524 00:29:17,600 --> 00:29:20,800 Speaker 1: or just venting it into the ecosystem. Um. And the 525 00:29:20,800 --> 00:29:22,719 Speaker 1: problem is that these are out in the middle of nowhere. 526 00:29:23,400 --> 00:29:26,000 Speaker 1: They're they're so far in the middle of nowhere they 527 00:29:26,040 --> 00:29:28,920 Speaker 1: call it stranded. There's no way to like get it 528 00:29:28,960 --> 00:29:30,800 Speaker 1: and capture it and take it to the pipeline. It 529 00:29:30,800 --> 00:29:33,480 Speaker 1: would cost way too much money to build pipelines out there. 530 00:29:33,880 --> 00:29:38,840 Speaker 1: So that's wasted. That's energy that's not being collected, and 531 00:29:38,880 --> 00:29:42,760 Speaker 1: it's literally just being vented into the ecosystem or flared off. 532 00:29:42,880 --> 00:29:46,680 Speaker 1: It's completely wasted. Nobody's using it. But bitcoin miners will 533 00:29:46,840 --> 00:29:51,000 Speaker 1: drive out there, drop a container right there and use 534 00:29:51,120 --> 00:29:55,480 Speaker 1: that energy that's being wasted. Do you understand what's happening here. 535 00:29:55,840 --> 00:29:59,360 Speaker 1: So it's not a waste, it's it's already being created. Now, 536 00:29:59,720 --> 00:30:02,880 Speaker 1: let's dig into the difference of proof of steak versus 537 00:30:02,920 --> 00:30:06,760 Speaker 1: proof of um work. So Bitcoin uses proof of work, 538 00:30:06,840 --> 00:30:10,240 Speaker 1: Ethereum has been using proof of work, and this week 539 00:30:10,320 --> 00:30:13,440 Speaker 1: they switched over to proof of steak. Let's talk about that. 540 00:30:14,040 --> 00:30:18,320 Speaker 1: So UM first of all, I talked said this is 541 00:30:18,360 --> 00:30:20,920 Speaker 1: political we already talked about with the CFTC, said they 542 00:30:20,960 --> 00:30:23,400 Speaker 1: want new laws. They want more power to regulate. Even 543 00:30:23,400 --> 00:30:26,640 Speaker 1: though Ethereum has reduced or introduced, it's not enough. They 544 00:30:26,640 --> 00:30:29,120 Speaker 1: wanted to reduce even more. What are they even talking about? 545 00:30:29,560 --> 00:30:33,760 Speaker 1: But this might be why the World Economic Forum is 546 00:30:33,800 --> 00:30:37,680 Speaker 1: completely behind the merge. The Weft currently has this plastered 547 00:30:37,840 --> 00:30:41,400 Speaker 1: all over its homepage, celebrating the merge, and they say 548 00:30:41,440 --> 00:30:48,880 Speaker 1: it's quote a sea change towards sustainability among cryptocurrencies. Alright, 549 00:30:49,600 --> 00:30:55,160 Speaker 1: Weft is on board. Not everything, but most things. The 550 00:30:55,160 --> 00:30:58,160 Speaker 1: Weft for Weft is four. I'm probably not for because 551 00:30:58,240 --> 00:31:00,520 Speaker 1: I know what their goal is by twenty thirty. It's 552 00:31:00,560 --> 00:31:03,120 Speaker 1: on their website. Clous Squab has written the books. I 553 00:31:03,160 --> 00:31:05,080 Speaker 1: don't like to repeat him because all sound crazy, but 554 00:31:05,160 --> 00:31:08,120 Speaker 1: you know the goal is by yell own nothing to 555 00:31:08,200 --> 00:31:11,040 Speaker 1: be happy. I don't like that goal. That's not what 556 00:31:11,120 --> 00:31:13,280 Speaker 1: I want for my life or for my kids. And 557 00:31:13,360 --> 00:31:15,840 Speaker 1: so pretty much anything that they're doing is leading to 558 00:31:16,080 --> 00:31:18,560 Speaker 1: their goal, and I don't want that goal. So then 559 00:31:18,600 --> 00:31:20,960 Speaker 1: I don't want to go along with things they like 560 00:31:20,960 --> 00:31:24,400 Speaker 1: like this. They're they're plotting this, and the problem is 561 00:31:24,400 --> 00:31:26,720 Speaker 1: that we're gonna talk about the difference. So moving from 562 00:31:27,280 --> 00:31:32,280 Speaker 1: to proof of steak, Ethereum has now jeopardized its security 563 00:31:32,320 --> 00:31:36,960 Speaker 1: and decentralization. So remember there's a technological revolution happening here, 564 00:31:37,000 --> 00:31:41,840 Speaker 1: the technological revolution. The new invention that we have is 565 00:31:42,040 --> 00:31:47,800 Speaker 1: d centralization. That's it decentralization, which bitcoin has solved. Ethereum 566 00:31:47,840 --> 00:31:49,520 Speaker 1: was kind of there a little bit. I'm not gonna 567 00:31:49,520 --> 00:31:51,280 Speaker 1: go with the details of it. Before with proof of work, 568 00:31:51,320 --> 00:31:54,760 Speaker 1: but now by going to proof of steak, now it's jeopardized. 569 00:31:54,840 --> 00:32:00,280 Speaker 1: It's security and decentralization. Let's talk about that for a second. Right, 570 00:32:00,320 --> 00:32:03,000 Speaker 1: So the proof of work basically means there's millions of 571 00:32:03,040 --> 00:32:09,320 Speaker 1: computers using electricity to apply processing power to process transactions. Now, um, 572 00:32:09,400 --> 00:32:11,040 Speaker 1: that seems like a waste of energy. Why do we 573 00:32:11,040 --> 00:32:13,440 Speaker 1: need millions of machines doing that? But it's what keeps 574 00:32:13,480 --> 00:32:17,240 Speaker 1: the system decentralized. Remember, we don't want just one database 575 00:32:17,280 --> 00:32:19,800 Speaker 1: that anybody can change. There the arbitrate of truth. We 576 00:32:19,840 --> 00:32:24,440 Speaker 1: want a decentralized system that nobody can control. Work is 577 00:32:24,560 --> 00:32:28,920 Speaker 1: the arbitr of truth. The pyramids are proof of work. 578 00:32:28,960 --> 00:32:31,080 Speaker 1: It's the arbit of truth. Everyone can look at the 579 00:32:31,080 --> 00:32:34,240 Speaker 1: pyramids and and know that it's true that work went 580 00:32:34,320 --> 00:32:38,840 Speaker 1: into building that. Right if if you if you. You know, 581 00:32:38,920 --> 00:32:41,360 Speaker 1: if you're really strong and you've built up big muscles, 582 00:32:41,360 --> 00:32:43,840 Speaker 1: that's the arbit of truth. We know you've put time 583 00:32:43,880 --> 00:32:46,959 Speaker 1: into the gym to build that up. Right. There's no 584 00:32:47,040 --> 00:32:51,200 Speaker 1: central authority that decides what constitutes a valid transaction. If 585 00:32:51,200 --> 00:32:52,880 Speaker 1: I want to do a transaction from me to you, 586 00:32:53,240 --> 00:32:55,200 Speaker 1: there's no central authority that decides that. Like at the 587 00:32:55,240 --> 00:32:57,480 Speaker 1: bank they switched my ledger for me to you, But 588 00:32:57,680 --> 00:33:03,120 Speaker 1: in a decentralized one. The longest blockchain that's verified is 589 00:33:03,160 --> 00:33:05,960 Speaker 1: recognized as the truth by the rest of the network. 590 00:33:06,240 --> 00:33:09,120 Speaker 1: The longest blockchain is the one with the most work 591 00:33:09,440 --> 00:33:12,800 Speaker 1: put into it, and it meets the consensus criteria that 592 00:33:12,840 --> 00:33:17,000 Speaker 1: the node networks check. All right, The more energy that 593 00:33:17,040 --> 00:33:19,920 Speaker 1: bitcoins network uses, the more computers that are on the network, 594 00:33:19,920 --> 00:33:22,920 Speaker 1: the more energy being used, the more secure it is 595 00:33:23,000 --> 00:33:28,280 Speaker 1: against any type of attacks. All right, Now, the proof 596 00:33:28,320 --> 00:33:31,400 Speaker 1: of steak is so if proof of work as a 597 00:33:31,440 --> 00:33:35,320 Speaker 1: system where miners compete with electricity and processing power to 598 00:33:35,440 --> 00:33:39,000 Speaker 1: build the longest blockchain, which becomes the accepted blockchain, that's 599 00:33:39,040 --> 00:33:43,120 Speaker 1: proof of work. Then it's connected to real world natural resources. 600 00:33:43,360 --> 00:33:45,360 Speaker 1: If I spend all this money on my equipment and 601 00:33:45,360 --> 00:33:47,560 Speaker 1: all this money on electricity, and I try to maliciously 602 00:33:47,560 --> 00:33:50,800 Speaker 1: a work against the network, I'm gonna lose my money, 603 00:33:51,040 --> 00:33:55,040 Speaker 1: so I'm incentivized to be a good actor. It's connected 604 00:33:55,080 --> 00:33:59,040 Speaker 1: to real world natural resources electricity. Proof of steak is 605 00:33:59,040 --> 00:34:02,720 Speaker 1: where holders of the cryptocurrency lock it up, they quote unquote, 606 00:34:02,800 --> 00:34:06,720 Speaker 1: stake their coins, and then those steak coins, those locktop coins, 607 00:34:06,760 --> 00:34:10,640 Speaker 1: are then used to vote on valid blockchain and then 608 00:34:10,680 --> 00:34:16,160 Speaker 1: they get rewarded with more coins for successfully creating new blocks. 609 00:34:16,200 --> 00:34:18,840 Speaker 1: So I stake them and now I can earn new 610 00:34:18,920 --> 00:34:22,200 Speaker 1: coins back for the existing coins I have. Instead of 611 00:34:22,239 --> 00:34:27,440 Speaker 1: having to commit electricity and processing power to create new blocks, 612 00:34:27,960 --> 00:34:30,839 Speaker 1: now they're just committing their stake of coins, so there's 613 00:34:30,840 --> 00:34:32,720 Speaker 1: no work being done. They didn't have to buy anything, 614 00:34:32,719 --> 00:34:34,680 Speaker 1: they have to spend anything. All they're doing is staking 615 00:34:34,680 --> 00:34:37,680 Speaker 1: their coins. Proof of work is simple, right, Like I said, 616 00:34:37,760 --> 00:34:40,440 Speaker 1: you don't need to punish bad miners. Their punishment is 617 00:34:40,480 --> 00:34:43,480 Speaker 1: that they would spend all that money on the equipment, electricity, 618 00:34:43,520 --> 00:34:45,720 Speaker 1: and if they if the blocks weren't valid, they would 619 00:34:45,760 --> 00:34:48,640 Speaker 1: lose that money. Right, they self inflict their own wounds, 620 00:34:48,880 --> 00:34:51,880 Speaker 1: so it never happens. But proof of steaks complex because 621 00:34:51,920 --> 00:34:55,080 Speaker 1: there's no connection to real world resources. There's no money there, 622 00:34:55,120 --> 00:34:59,160 Speaker 1: there's no way to make sure steakers aren't doing something maliciously. 623 00:35:02,280 --> 00:35:05,279 Speaker 1: On top of it, the proof of work, I'm sorry, 624 00:35:05,280 --> 00:35:09,080 Speaker 1: proof of steak is prone to centralization. The more coins 625 00:35:09,120 --> 00:35:12,200 Speaker 1: you have, the more voting power you have. Those with 626 00:35:12,280 --> 00:35:15,880 Speaker 1: the most coins um get the most votes, sort of 627 00:35:15,880 --> 00:35:21,200 Speaker 1: like a political system, so um ethereum seventy three percent 628 00:35:22,560 --> 00:35:25,320 Speaker 1: of the tokens the coins on Ethereum were pre mind 629 00:35:25,600 --> 00:35:28,719 Speaker 1: the founders gave them to themselves. So who gets who 630 00:35:28,760 --> 00:35:30,800 Speaker 1: gets to say how the network changes? Oh, those with 631 00:35:30,880 --> 00:35:32,759 Speaker 1: the most votes. Who has the most votes? Those with 632 00:35:32,800 --> 00:35:34,719 Speaker 1: the most coins, who has the most coins? Oh yeah, 633 00:35:34,760 --> 00:35:36,880 Speaker 1: the ones that gave it to them when they invented it. 634 00:35:37,120 --> 00:35:40,400 Speaker 1: As a matter of fact, seventy of the Ethereum staked 635 00:35:41,000 --> 00:35:45,200 Speaker 1: is held by known providers, with four entities controlling and 636 00:35:45,280 --> 00:35:50,839 Speaker 1: astounding sixty of the total Ethereum staked. Four entities control 637 00:35:51,400 --> 00:35:56,680 Speaker 1: this leado coin based cracking and binance, So this makes 638 00:35:56,680 --> 00:35:59,880 Speaker 1: it very centralized, which means they could get together and 639 00:36:00,160 --> 00:36:03,320 Speaker 1: vote to change anything, which is why probably the entities 640 00:36:03,360 --> 00:36:08,839 Speaker 1: like the wef like it. With enough power, with enough exertion, 641 00:36:09,400 --> 00:36:13,120 Speaker 1: they can get the network to sensor transactions or change 642 00:36:13,160 --> 00:36:16,080 Speaker 1: the software, or change what they want. Proof of work 643 00:36:16,160 --> 00:36:20,080 Speaker 1: is something that cannot be controlled. It's not about the 644 00:36:20,200 --> 00:36:22,920 Speaker 1: energy being used, it's not about the climate. It's about 645 00:36:22,960 --> 00:36:26,120 Speaker 1: having control over that. Hopefully that makes sense to you. 646 00:36:26,600 --> 00:36:29,120 Speaker 1: Big News. It's changing fast. I'm trying to help you 647 00:36:29,160 --> 00:36:31,040 Speaker 1: stay on top of it. You're listening to the Mark 648 00:36:31,160 --> 00:36:34,160 Speaker 1: Mars Show. Of course, we're talking about the decentralized revolution. 649 00:36:34,160 --> 00:36:37,000 Speaker 1: We're talking about just finished about the ethereum merge that 650 00:36:37,040 --> 00:36:38,680 Speaker 1: happened this week. If you missed it, check it out 651 00:36:38,719 --> 00:36:41,839 Speaker 1: on the podcast. Just search Mark Moss any of your 652 00:36:41,880 --> 00:36:44,640 Speaker 1: podcast players and you'll find it. Or check me out 653 00:36:44,680 --> 00:36:47,480 Speaker 1: on YouTube just search market Disruptors. You'll find them there 654 00:36:47,520 --> 00:36:49,520 Speaker 1: as well. You can watch me on video. But that's 655 00:36:49,560 --> 00:36:51,640 Speaker 1: what I got. That's the theory merge. Hopefully it makes sense. 656 00:36:52,400 --> 00:36:53,160 Speaker 1: Thanks for listening.