1 00:00:00,920 --> 00:00:03,600 Speaker 1: Bitcoin one oh one. I'm Rich Demiro and this is 2 00:00:03,720 --> 00:00:06,280 Speaker 1: Rich on Tech Daily. Okay, how many times have you 3 00:00:06,320 --> 00:00:11,119 Speaker 1: heard someone talk about bitcoin, cryptocurrency or blockchain. These buzzwords 4 00:00:11,119 --> 00:00:13,560 Speaker 1: are being thrown around like everyone knows what they mean, 5 00:00:13,720 --> 00:00:16,720 Speaker 1: but do they really. I figured, you know, what it is, time, 6 00:00:16,760 --> 00:00:19,040 Speaker 1: with so many people investing in this stuff and talking 7 00:00:19,079 --> 00:00:21,640 Speaker 1: about it, to get a little bit more information about it. 8 00:00:21,680 --> 00:00:23,160 Speaker 2: So I talked to Alan Goren. 9 00:00:23,400 --> 00:00:26,639 Speaker 1: He's a financial technology entrepreneur based in Los Angeles. He 10 00:00:26,720 --> 00:00:30,320 Speaker 1: also hosts one of the biggest cryptocurrency investment events every year. 11 00:00:30,480 --> 00:00:33,960 Speaker 1: It's called the Crypto invest Summit. And he told me 12 00:00:34,000 --> 00:00:37,360 Speaker 1: point blank, the average person does not understand And he said, 13 00:00:37,400 --> 00:00:40,600 Speaker 1: the average person who's a bitcoin millionaire probably doesn't understand 14 00:00:40,640 --> 00:00:42,600 Speaker 1: bitcoin for the most part, which is kind of crazy 15 00:00:42,720 --> 00:00:44,960 Speaker 1: because people have made money on this stuff. 16 00:00:45,360 --> 00:00:46,800 Speaker 2: He's all into this stuff. 17 00:00:47,000 --> 00:00:48,680 Speaker 1: He even got his wife to write a book on 18 00:00:48,720 --> 00:00:51,519 Speaker 1: it called Bitcoin for Babies, which is really cute. It's 19 00:00:51,520 --> 00:00:55,240 Speaker 1: available on Amazon. But let's start with the basics. Cryptocurrency. 20 00:00:55,640 --> 00:00:58,639 Speaker 1: This is a new type of digital money that basically 21 00:00:58,720 --> 00:01:03,800 Speaker 1: uses complex math equations instead of bank records to verify transactions. 22 00:01:03,880 --> 00:01:07,039 Speaker 1: And Goren says there's over fifteen hundred different types of 23 00:01:07,040 --> 00:01:10,199 Speaker 1: cryptocurrencies and they all do different things. Now, of course 24 00:01:10,200 --> 00:01:13,199 Speaker 1: we've all heard of bitcoin. That's the most widely known, 25 00:01:13,240 --> 00:01:15,360 Speaker 1: so it's super popular. And he said the reason why 26 00:01:15,360 --> 00:01:18,959 Speaker 1: it's most popular is because it was the first major cryptocurrency. 27 00:01:19,000 --> 00:01:22,200 Speaker 1: It got the most adoption, and it was really revolutionary 28 00:01:22,200 --> 00:01:26,880 Speaker 1: in what it did. Now, like cash, cryptocurrency is anonymous, 29 00:01:26,959 --> 00:01:31,320 Speaker 1: but there's a big difference. Unlike cash, cryptocurrency is independent 30 00:01:31,400 --> 00:01:33,080 Speaker 1: of all banks or government. 31 00:01:33,520 --> 00:01:35,559 Speaker 2: So basically, this is the crazy part. 32 00:01:35,840 --> 00:01:39,959 Speaker 1: Every single little piece of cryptocurrency carries its own record 33 00:01:40,280 --> 00:01:42,520 Speaker 1: of everywhere it's ever been exchanged. 34 00:01:42,680 --> 00:01:46,440 Speaker 2: Yes, that record gets pretty big. And the reason why Goren. 35 00:01:46,240 --> 00:01:49,760 Speaker 1: Says that this is special is because it is called trustless. 36 00:01:50,040 --> 00:01:52,360 Speaker 2: That means you don't have to have a middleman. 37 00:01:52,680 --> 00:01:54,240 Speaker 1: So, if you think about it, the way that you 38 00:01:54,320 --> 00:01:57,520 Speaker 1: normally send money is from bank to bank. The bank says, yes, 39 00:01:57,560 --> 00:01:59,760 Speaker 1: we have this money, we approve it, and the other 40 00:01:59,760 --> 00:02:02,720 Speaker 1: bank says, okay, we've received this money, and we acknowledge 41 00:02:02,760 --> 00:02:06,040 Speaker 1: that this all happens within the currency itself, which is 42 00:02:06,040 --> 00:02:08,400 Speaker 1: pretty amazing when you think about it. So what is 43 00:02:08,440 --> 00:02:11,919 Speaker 1: the biggest thing holding bitcoin back? Well, it is slow 44 00:02:12,000 --> 00:02:16,000 Speaker 1: transaction time. Think about it right now, Every transaction must 45 00:02:16,000 --> 00:02:20,080 Speaker 1: be approved, and it's approved through these computers, a worldwide 46 00:02:20,160 --> 00:02:23,880 Speaker 1: network of peer to peer computers. They call these things minors, 47 00:02:23,960 --> 00:02:26,000 Speaker 1: and anyone can really sign up to be a minor. 48 00:02:26,360 --> 00:02:29,000 Speaker 1: They do all the work and if you solve one 49 00:02:29,040 --> 00:02:32,919 Speaker 1: of these transactions, you're rewarded with a little bitcoin for yourself. 50 00:02:33,000 --> 00:02:34,880 Speaker 1: So you have a lot of people doing this and 51 00:02:34,880 --> 00:02:36,360 Speaker 1: that's how the system propagates. 52 00:02:36,360 --> 00:02:37,480 Speaker 2: That's how the system. 53 00:02:37,160 --> 00:02:40,200 Speaker 1: Actually works because there's always someone out there that wants 54 00:02:40,240 --> 00:02:42,079 Speaker 1: to say, Hey, I want a little tiny piece of 55 00:02:42,800 --> 00:02:45,600 Speaker 1: the money here, so I'm going to solve these transactions 56 00:02:45,639 --> 00:02:49,560 Speaker 1: and that's what really powers the entire system. So why 57 00:02:49,600 --> 00:02:52,520 Speaker 1: are investors going wild over all these new currencies like 58 00:02:52,560 --> 00:02:56,320 Speaker 1: Bitcoin and similar currencies you've heard about, cryptocurrencies like. 59 00:02:56,400 --> 00:02:57,720 Speaker 2: Light coin and ethereum. 60 00:02:58,080 --> 00:03:01,000 Speaker 1: Well, Goren says, there are lots and lots of very 61 00:03:01,080 --> 00:03:04,160 Speaker 1: valuable tools being built on them, and that is what 62 00:03:04,280 --> 00:03:06,000 Speaker 1: the value is all about. 63 00:03:06,360 --> 00:03:08,359 Speaker 2: So where can you spend this money? If you buy 64 00:03:08,360 --> 00:03:08,919 Speaker 2: some bitcoin? 65 00:03:08,919 --> 00:03:11,720 Speaker 1: I actually bought twenty five dollars worth of bitcoin through 66 00:03:11,760 --> 00:03:14,680 Speaker 1: an app called square Cash. It made it really easy, 67 00:03:14,960 --> 00:03:18,200 Speaker 1: but spending bitcoin, it could be a little bit tough 68 00:03:18,200 --> 00:03:21,280 Speaker 1: for the average person. Right now, just a handful of businesses, 69 00:03:21,520 --> 00:03:23,720 Speaker 1: big businesses accept it as a payment type. You're not 70 00:03:23,720 --> 00:03:26,000 Speaker 1: going to find it as a checkout option on Amazon, 71 00:03:26,400 --> 00:03:29,400 Speaker 1: but overstock dot Com is one of the pioneers and 72 00:03:29,480 --> 00:03:31,720 Speaker 1: accepting it, and there's a whole bunch of other companies 73 00:03:31,760 --> 00:03:35,280 Speaker 1: as well. Coinbase is one of the popular websites for 74 00:03:35,400 --> 00:03:38,800 Speaker 1: buying bitcoin. That's probably the most popular, the one that 75 00:03:38,840 --> 00:03:40,880 Speaker 1: you hear over and over. They have a whole list 76 00:03:40,920 --> 00:03:43,680 Speaker 1: of companies where you can spend it as well. But 77 00:03:43,880 --> 00:03:46,480 Speaker 1: if you've been keeping up on the bitcoin news, you 78 00:03:46,560 --> 00:03:49,800 Speaker 1: know that the price fluctuates wildly. So the twenty five 79 00:03:49,840 --> 00:03:52,000 Speaker 1: dollars that I put in there as of today is 80 00:03:52,040 --> 00:03:54,920 Speaker 1: up to twenty eight, but it was down to eighteen just. 81 00:03:54,880 --> 00:03:57,240 Speaker 2: A week ago, so it is pretty crazy. 82 00:03:57,320 --> 00:03:59,480 Speaker 1: It's like an investment, so if you're gonna put money 83 00:03:59,480 --> 00:04:02,240 Speaker 1: on this, you need to understand what you're getting into 84 00:04:02,600 --> 00:04:04,080 Speaker 1: before you plunk down your cash. 85 00:04:04,200 --> 00:04:05,160 Speaker 2: All right, If you want to learn. 86 00:04:05,040 --> 00:04:07,600 Speaker 1: More about bitcoin, you can find some resources and links 87 00:04:07,640 --> 00:04:08,520 Speaker 1: on my website. 88 00:04:08,600 --> 00:04:10,640 Speaker 2: Just go to rich on tech dot tv. 89 00:04:11,080 --> 00:04:13,840 Speaker 1: Hopefully I help you understand a little bit more about 90 00:04:13,840 --> 00:04:17,880 Speaker 1: this emerging currency. It is very interesting and very unique. 91 00:04:18,160 --> 00:04:20,039 Speaker 1: I'm rich Demiro rich on tech. 92 00:04:20,320 --> 00:04:21,320 Speaker 2: I'll talk to you next time.