by birtanpublished on September 2, 2020

What's up crypto gang welcome back to another episode if you guys are new here we do a giveaway at the beginning of every single episode and today's winner is RAM RAM thanks so much for commenting on the previous video ram ram just sent you some crypto on this episode I sit

Down with the legendary Richard Hart for about an hour we talked about some of the crypto economics around his new project hex I talked a little bit about grow your base talk to us about crypto in general how he got in the Bitcoin

Through gaming and through throttling GPUs for mining and it was a lot of fun sitting down and talking to him about so many different topics so without further ado let's dive right into this massive stream with Richard Hart this is the

Legendary Richard Hart you could do like a quick intro Richard sure awesome everybody I'm Richard Hart I've got 100,000 followers across Twitter in YouTube I'm Richard Hart win on Twitter I'm Richard Hart on YouTube we're tired

Serial entrepreneur retired in 2003 I started from my own front yard a bunch of businesses and then they ended up with about 150 employees an internet marketing company I started mining Bitcoin in the first quarter of 2011 I

Used to mind full blocks on my own with no pool and there were 50 BTC block rewards back then so that was good fun I bought heavy on the 30k top or the $30 top then watched it go down to a penny that was good fun and I came up public

To defend my Bitcoin bag because the theorem was overtaking the market cap of Bitcoin in its future supply if you account for the fact that it issues at a higher rate for longer it's like year 2050 market cap was higher than bitcoins

I didn't know any of it so I came out to say bad things about ethereum and good things about Bitcoin and then I learned over time then in fact there's a lot of good things going on in that ecosystem most of the problems that were had were

Had because people weren't using it properly so now I say a lot of good things about the theorem and I'm very realistic about Bitcoin and it's funny in crypto whatever you bought is a world-changing invention and whenever

You didn't buy is a scam and that's how everyone in crypto feels and it's funny because you know maybe maybe usually they're right maybe most things are done by the wrong people at the wrong time with the wrong incentive

Structure then ever get product market fit they just burn everyone's money that's what I see is did for the most part but the word the word gets abused a little bit because if you build open-source software that people can use

Or not what more do you want that's as good and as honest that was free and as as good as a thing could possibly be and that's what vitalik did and you know he's still built an open-source software that people enjoy and use and still

Didn't research and still stand on stage and try and spread the good word and everyone calls him a scammer so if you if you think maneras a scam and you think metallics a scam and you you know you think every possible thing is a scam

Except what you buy you're probably an asshole truthfully right you're not being they're not being honest you're not being fair you're not analyzing things in their merits and your reward for being that way is you will miss out

On the multiple thousands of percent of return that people will get when they get it on the right project that isn't on the top ten market cap and then finds its way up there right so you know talking all that garbage and staying

Ignorant and priding yourself on your ignorance you will be forever regretful that you missed the next big thing because you didn't think there would be a next big thing because you didn't understand how those other guys got up

There right so you know I asked people I'm like you know how many coins the top ten do you think belong there at two one all right stay ignorant well I can't help you you're not helping build a better future

Right if you're not doing competitive analysis and you're not thinking about what's missing and what you can do better and you know really trying things and iterating if you're not iterating you're not you're not making progress

Right so if the coins got less on chain transactions as it did in 2017 less people that accept it the price dropped 85 percent and these people think that they have the best thing in the entire world and nothing else can be done

Better and you're like well guys the metrics the measurements the Google search volume the Unchained transaction volume the number of new wallets that like what you're not winning the war all you

Have is a really high hash rate the software is the best that's ever been right that's continued to improve and you have a really high hash rate and what is that really high hash rate – well you have all-time high

Difficulty at three times less than all-time high price uh oh so that's more selling pressure people have to sell more of the percentage of coins they get to pay their electric bills just pushes the price down harder

So is that better right and all the problems we've had with the tax in Bitcoin have not come from hash rate ever they've come from software bugs and there's no bug bounty program and there's no one auditing software so the

Things that I tell these people to do to improve their thing that I also own a huge bag of they just don't listen they're like no no I can't listen I can't learn I can't do anything better I have my bag and I hope everything works

Out good stupid people they don't they don't deserve greatness they don't they don't deserve excellence it's sad so in terms of the project that you're working on right now I did some research on it and I liked the concept of creating a CD

I think that that's really smart because that was created in like the 60s and it worked out really well for banks to give people liquidity and get them give themselves liquidity and just raise a ton of money to help their

Infrastructure so interestingly enough in terms of where hex is base because it's called hex top when you're just hex mm-hmm and the it's based on aetherium and it will be taking a screenshot of people that own Bitcoin so that it'll

Easily provide them with a CD for their bag of Bitcoin right is that how it's kind of being pretty much so so basically the two most popular products of your bank or savings accounts and time deposits and I would say checking

Account used to be in there but no one uses check somewhere so I would say this is a second most popular product at your bank mm-hmm if you want to get rid of the banksters and you want to get rid of gotcha capitalism and you want to get a

Rid of all those crappy entities that are middlemen to just leech off of the GDP of the economy and get in the middle of everyone transactions and prevent you from doing what you want to do with your own money and are never open when you

Need them to be open if you want to get rid of those people someone has to develop the software it replaces every single product they have with a peer-to-peer trusted auditable solution the coin can do currency it

Cannot do dime deposits it already has time locking built into it and it cannot pay interest when you lock up it just screws you it just makes it so you can't use your in mine you don't get any reward for it you don't receive any

Interest for it if you want to make interest on your Bitcoin you have to lend them to someone hope they lend them out and hope you ever see them again with a return and that gets hacked and shut down all the time people lose tons

Of Bitcoin trying to make a little extra Bitcoin on their Bitcoin so we invented trust less interest we invented the first high interest internet blockchain certificate of deposit which is called bond in the UK time deposit across Asia

Guaranteed GIS and Canada can see I remember it stands for something investment security certificate I don't know jazz so if if you want these coins and you want this world-changing innovation you want to get in at the

Beginning like I got in at the beginning of Bitcoin I got my Bitcoin for free and now you guys are buying for $8,000 the ones that I got for free I just double clicking in Exe right I'm recreating that for everyone giving everyone an

Opportunity to get in at the beginning of something amazing again and I'm giving it to you guys for free if your Bitcoin holder snapshots and five days and some hours it's on December 2nd at 0 0 0 0 UTC time so it's it's amazing it's

Like it detects a larger market the Bitcoin does currency is a smaller market than cash to time deposits time deposits are seven point two trillion the United States and China won and we have lower fees than Bitcoin and we have

I believe better security because the theorem that we run on has a bug bounty program and we've had three audits of which two are security audits someone is an economics audit so it's like and our consensus code

Is locked into a smart contract that no one can edit it's immutable and therefore it's very very hard to have bugs around consensus you know but in Bitcoin if you improve the network stack you accidentally introduced a mint as

Many free coins as you want bug they've had two of them one of them was executed they had to roll the chain back the other was narrowly avoided because a Bitcoin cash developer reported it responsibly instead of using it for

Himself this is about a year ago yeah so I hear people saying bitcoins more more secure than aetherium and I have a strong laugh because the theorems never had an inflation bug never and bitcoins had to Anna theorem has launched a

Theorem launched or is or is primarily used by five of the top ten market cap cryptocurrencies USD T used to do its transactions on Bitcoin it moved most of them off of there on to your C 2009 theorem which is the same format that we

Use that coin does more transaction volume than any other coin encrypt a period so the only people are really using crypto or the USD T guys and they're primarily doing a year C 2008 fearing yes

BN be TRX us DT and etherion themselves all are in the etherium ecosystem they launched their they started their or they primarily use it now so anyone that talks to me about security and says if there's some kind of problem dreaming so

They say they're gonna say the parity multi SiC hack you're like yeah they didn't declare a function as private and if they would have worked wrote the word private in the contract instead of defaults to public they wouldn't have

Had that problem but since they didn't write the word private they got hacked does that anything to do with the theorem nope they used it improperly what about the Dow well Bitcoin rolled back the chain once because of a bug a

Theorem never rolled back the chain because of a bug they removed a hacker from being able to steal some people's money because the community decided that's what they wanted to do because they had to because they wanted to and

Could they do it again nope why not because they could they'd roll back the chain for polka dot and parody who are you know Gavin woods projects and he wrote solidity right he wrote the smart language code

The smart language language that everyone uses in aetherium he wrote that they're not gonna roll back the chain for him they're not gonna roll back for anybody you know I'm very very happy with the ecosystem so in terms of the

Incentives because what I try to do on my channel like my channels called hack crypto and the concept is hack your crypto education and I try to simplify everything I possibly can so if you were gonna simplify down like the incentive

Structure for viewers and listeners and whatnot like I've been interested in masternodes and things like that because the incentives are really interesting to people all over the world what's the incentive structure for the the CD is it

That you hold it there for a year two years what are the milestones that people would would be holding it on there to get their interest well if you free claim your 90 percent Auto staked for three hundred and fifty day minimum

And if you like up to 3x the shares as a bonus you can increase your stake length and at 36 41 days you're gonna have 3x the shares the share price only goes up every time someone ends their share the system looks and says are you the

Highest return on investment anyone's ever seen if so your ratio becomes the new price so if you made a 10x in your Bitcoin profit or in your hex profit you're gonna get the new share price to be set to 10x what it started at and so

Now if you tried to get back in and like recom pound you'll never have more shares than you originally had ever it's impossible so this is a mathematical equivalent to compounding the interest for earlier guys it's computationally

More efficient because we don't have to write a bunch of data to a bunch of different fields across a bunch of different entities we just change one share price and then instead of amplifying what the earlier guys had we

Just reduce what the newer guy gets and since they're just measuring ratios of all these people to divide up all the profit inputs to the stagers class it works great works wonderfully and it gives us a wonderful

Chart the share price that only goes up no not there's not the USD price it may affect the USD price because it introduces scarcity but it is not directly related to the USD price at all right so the USD price I'm quite quite

Sure will go up and down because it is function of humans pressing buttons and you can't program humans to press buttons the way you want them to right so you can you can create scarcity in a system programmatically so sometimes

They'll say a program to pump because there's a nice alliteration alliteration there with the two peas but you know in reality the price will be in a free market the price is set by the market participants and they could create

Bubbles they could create flash crashes they could do all those things if there's you know human control that's why I like the smart contract the smart contract doesn't have a book to screw you it doesn't have flash crashes it

Doesn't have wicks to stop you out and get you liquidated none of those things so with trustless interest you can make high interest just sitting and holding tax and the contract holds it for you and it's like getting free electricity

And free mining hardware it just prints all the inflation of the system to you but in Bitcoin see hex takers get paid to hold the price up Bitcoin miners get paid to sell the price down because they got electricity bills to pay I got a new

Equipment to buy they got facilities to pay the rent for right we don't have any of that in hex no miner is paid in inflation reward max the only miners they get paid in hex are a couple pennies of fees or you can line

Your in blocks which is harder I would imagine most people pay someone else to run the software for them and what do you what do you think about the new ability to actually stake with I think it was 30 eath or what they're gonna

Have for their nodes right the loser money on it so just do a search you can go into TDMA /x crypto and type exclamation mark Kasper and you'll see that Alex presentation called so you want to be a Casper validator and it

Just goes through all the ways you can lose on money it's not easy it's an actual job you have to stay you have to have good hardware you have to be connected to the Internet always and your consensus code

Has to always arrive at what it should or you'll lose money slashed so it's risky and it's low profit margin if any some people will lose money I think and that's not what I meant doe for I am NOT in crypto to bust

My ass and work really hard to make mediocre gains I'm in it for the mad gains that's what I'm used to that's what other people are getting and that's what I want so I have no interest in being a Casper validator whatsoever

Got it so running back real quick what originally got you into Bitcoin like he said they were mining what was it that got you into mining it like what was this I was addicted to video games and I loved overclocking my GPUs and having

You know the best hard worth time because I'd been retired since 2003 I'm just traveling the world just screwing around a decade in my life doing that and I was on this website called overclock dotnet and I'd already heard

That quit before and read it once before it was a dollar and then once when some guy like sold his house to buy it at a dollar and then you know everyone was writing guides on how to do GPU mining on overclocked that net and so then I

Got into the Bitcoin forum and I was an IRC channel and you know there was a guy named art force and he wrote basically the first GPU miner and you know I got a chat with him and I got set up GPU mining and if you're not playing a game

They just double-click the Bitcoin exe and money starts appearing in your computer seem like a no-brainer to me so I liked it and then I ramped up and bought more machines and had a little server farm and then I bought with USD

So we did get you in with the free stuff and then you all in and that's what hex is doing too so you know I've got a referral link if you want 10% more complemental comm gives you 10% bonus when you claim or 10% bonus when you

Sound a theorem to the contract to transform it into X we get people in with the free world changing innovation feels to me like buying Bitcoin of the dollar is the environment the vibe that I get and then I think people will buy

And I went and made a Twitter poll and I should do this by email sale probably I'll probably send something similar by email I said listen and anonymous donors going to give you 10,000 hacks if you can predict what the ratio will be

From the bottom the low that gets set the first day that this trades which should be the first date exists which would be December 4th so snapshots December 2nd adoption amplifier lobby entries open December

3rd and then people can exit the lobbyists with their hex and free claim their hacks on the 4th and then the staking starts so on the 4th we should have markets that open ether Delta and fork Delta where people can trade and

Then you know idec's reach down said they wanted to list another exchange actually a couple exchanges said they want to list you know I'll promote them when I see it on paper that they've done the work for me to like name drop them

Know the ratio between the low set that day and the high 183 days later whoever guesses that ratio is gonna get 10,000 hex and the numbers that people are guessing are 420 X 1600 X 10 X 0.05 X all right this was there's a large range

Of numbers there that people are guessing and from what I see they seem to be quite high so the data that I have to try and predict what this price will do and how many people are interested in in it are

How many websites – how many emails do we have from signups on the website and I'm gonna sign up so it's just optional email a sign up you know you don't have to give your email address at all right it's just if you want to stay up to date

It's just a way that you can help be notified we got like 18 thousand seven hundred and fifty on there we've got and I think maybe we only get one at a ten or one out of a hundred one of let's say one at

A ten or one out of twenty visitors actually gives that you know wish I could do better math so so we've got 18,500 and we've had 300,000 plus users on the website this month so that's like what 1 out of 15 or something right so

There's probably my guess maybe 200,000 400,000 people interested that's a lot of people there's a lot of people these are people with proton-proton mail addresses that are more anonymous and I don't think they want to be giving up

Their three mail address that easily right yeah because people don't really like giving up personal info so I think people are really interested in this I think they believe that it's gonna show them a high a high return on

Investment due to its a excellent design and this is with me promising no entrepreneurial effort whatsoever we've never spent a dollar in marketing I tell you very specifically that any money that you send to the contract in the

Form of theorem you must expect absolutely no benefit from whatsoever because the Howey test right now a test says yeah if people give money it'll come pool with the expectation of profit solely from the work of others then it's

A security and it has to get licensed it has to get registered and it can't list on exchanges because exchanges don't have broker dealer licenses so if you want to currency to list on an exchange it can't be a security and if can't be

Security it helps not to be a security for you to have no expectations of anyone else doing any work for you and so I push that idea very very hard no one else is gonna be doing anything for you you're the one that meant sharing

Coins when you just like Bitcoin when a Bitcoin miner mints his coins he mints them for himself no one gives them to him hex is the same way you meant your own coins you are the network no one's doing more work than you are

I can't met your reward only you can do it only you have your private keys i when you when you stake your coins they actually get burnt and then when it's time to end your stake you mint your own principal back and you met your own

Reward it's awesome very very innovative and cool system so in in terms of just like a brief dive into the game theory of it there's a concept in game theory called Shapley where if if you and I you know

Both produce a certain amount like let's say you produce 10 cookies I produce 20 but together we streamline it we make 40 together but then I leave how how much do each of us make like we average the amount so if I come in with let's say a

Hundred thousand Bitcoin and start on on hex and then I leave a guy I leave does anyone in the hex ecosystem that has their their CD do they benefit or do they so it works it works the same way Bitcoin mining does so first of all

Once the snapshot has occurred you can sell your Bitcoin for aetherium and then put them in the adoption amplifier and transform them to Dex there's absolutely no relationship to the Bitcoin network whatsoever after the snapshot not got it

Got it okay so you will never stake your Bitcoin in the system the only thing you'll ever stake is hex now in Bitcoin it didn't it has always inflated it's always inflated a lot because it went from zero coins to 18 million coins and

The only way you can go from zero to 18 million over ten years is to print a lot of coins in any coin that anyone has ever purchased passed through the hands of a miner so people think that bitcoin is like a

Peer-to-peer currency it's actually not it's a peer to minor currency and if you don't mind you're not actually a peer and you don't get any free coins so the miners in Bitcoin are an elevated status and apparently they're all Chinese now

Because they don't talk to you on Twitter I don't know a single Bitcoin miner not one and I know a lot of people I'd never seen a single Bitcoin miner post on Twitter okay well why because they can't access Twitter in China to

Use a VPN it's blocked just like YouTube's blind just like telegrams blocked so there's a huge mining centralization problem in sha-256 mining and I like hacks making it so those guys don't get paid more than they

Need to they get the fees that they need nothing more because when you overpay them they just sell the price down and they're currently overpaid in its protection racket were you're protecting yourself from them because they're the

Only other people that could attack you with sha-256 they're the only people to have the hardware so you're paying a protection racket you're paying these guys you know eighteen like twelve point five times eight thousand you're paying

Them like a hundred grand every ten minutes to not attack their own network okay well 100 grand every ten minutes it's kind of a lot of money isn't it right and when they do it that they sell it to

Pollute the environment pay electricity bills because that's the security model proof of work it works but man it's not exactly the most efficient thing right it's like so colorful feathers on birds yeah it works but

You know there has to be other ways right so if if you want to get something for free like I got my Bitcoin for free you have that opportunity here if you want to transform ethereum into hex you're not gonna get your theorem back

But you're probably gonna end up with a lot more hacks like a ton because I know you brought a proof of work and that was pretty much the entire reason why I came into the space because I was obsessed with the labor theory of value where you

Know if we go if we go out hunting and I catch a rabbit it took me two days to catch the rabbit and I catch about our turf takes you to and it takes me one to get a deer I'm gonna charge more for the rabbit because it took me more labor to

Get the rabbit so we can try to charge more for it but I don't think the market would allow you to charge more for represented here yeah well the machchar I it would dictate yeah but the market definitely

Would take control but in terms of what got me into this space originally was the concept of proof of work was it was this new new version of the labor theory and I I think this is just information so going theory that animals have done

Forever so the reason that deer grow larger and larger handlers is because it's a waste of calories and if they could survive wasting the calories then they obviously have an excess then they could use that access to benefit their

Mate you know and in certain certain countries younger people get into the habit of pouring champagne down the drain just to show how much money they have do you think about these they're to be value though and in of course you do

Because you were in Bitcoin early on with proof of work and I love proof of stake it's true proof of work is just a means to an end it's not actually good or great it's just what only thing we have that

Works right now so what we care about is censorship resistance and proof of work and decentralization are means to that end of censorship resistance but if we could get censorship resistance in more efficient ways we should do

That because polluting the environment it's not actually that good right and like so I like proof-of-work I use proof of work and I hope that some of these other solutions to create trustless systems with censorship resistance

Without the pollution exists I hope that that occurs so what about it it probably will truthfully because the attack people fantasize that there's all these attacks that we have to prevent there's not the majority of attacks that we have

To prevent our software bugs and there's no one working on that because they're stupid they're idiots right the only bugs we've really had no one's working on stopping i've stopped this alarm it's gonna keep going sorry

Guys yeah the concept that proof-of-work i think given the current financial structure okay I'm back it's a good thing I wear pants for these interviews

The packet aware pants for the interview there yeah I'm here so what I was gonna say is that the current financial structure like the whole the whole financial space we'll call it banks and things they survive very heavily on

Transactions so what do you think of a future where proof-of-work is basically banks are mining Bitcoin and surviving off of those transactions what do you think about that that's a stupid if I haven't heard you don't think so

Hearted the dumbest thing I've ever heard of in my entire life no it actually suggested on Bitcoin talk like Edith Show years ago they suggested that as like a potential for them to participate in the future where they're

Confirming transactions making their transactional yeah leave okay thanks we'll do that in the future no I don't I don't think that at all and they haven't like that's hey guys we want to displace the banks and get rid

Of them god I hope they sell our coins and stay in business what we were here to get rid of the shitty banks that was the game right let's get rid of these assholes they're just taking everyone's money and being mean

About it so now we want to onboard them as miners and beg them to process our transactions and allow them into Bloxx you kidding me there's the shittiest possible Bitcoin miner in the entire universe will be a bank

There's no possible way they're ever doing that ever and you don't want them to that's a stupid idea in so many levels so you can't adopt them though right it's open source yes you can because they have laws regarding

AML kyc and suspicious activity reports and financial transmission license isn't they don't want to do deal with any of that at all they don't even they have problems keeping their own websites up you think they want to run

Some other where they got to argue about signaling for which fork they're gonna support they don't want anything to do with any of that there's no goddamn money in it like the miners lose money how are you gonna on

Board a bag to become a miner when miners are losing money does make any sense so do you not see a future where banks get involved in crypto they just vanish they don't adapt they just die instead what bank has anything to do

With crypto there's four or five banks on like the planet in the Western speaking kind of g8 nation planet that will onboard a crypto user and be happy about it there's four or five banks you can go to if you're in exchange and hope

That they don't shut you off four or five and this shit's existed for ten years they a mining and they're either you'll be lucky if they even let you keep your account open because you're just risk for them you're not a profit

Center you don't have them any users you don't do that much volume you're just someone that they're gonna get a letter from the regulator saying oh I heard somebody from al-qaeda use Bitcoin and I heard you're in a Bitcoin so we're gonna

Look into you now get your orders ready bro cuz your cash negative the amount of money you spend for your auditors will look up the paperwork to report that you did everything right is going to exceed any profit you ever made on these

Customers oh and you're personally responsible by the way because of the the the transport role the what's that role where you have to know the customer of the bank that you're sending the money

To travel rule the travel world right every this is the dumbest line of questioning I've ever heard banks do not like crypto they don't want to work with crypto there's no money for them in crypto it's only risk for them

Which is reason there's only four or five of them will work with any crypto company in the entire world and we don't like them and we don't want to work with them so like get rid of the bank's what do they do what did I actually do

They're just software company they're just a really shitty really slow software company right people don't even use them for like exchanging currency they used local exchange places right like Travelex

But like banks nobody likes banks yeah I agree I mean when when I was doing peer-to-peer lending we got shut down multiple times for from bank accounts like you know it up yeah they make it a nightmare like why'd you show

This thing I can't tell you yeah okay do I have any recourse no okay so just myself oh yeah just for yourself all right I'll just I'll go get the weapon those ass destruction and get to work yeah but

The the hard part was was like he said there was no explanation they priest funds things like that but when I was doing peer-to-peer lending a really cool startup that I met I called BTC Jam I don't know if you remember them but they

Were think they were doing peer-to-peer Bitcoin lending and in South America can you explain can you explain to me why the anyone would borrow a Bitcoin do you know how goddamn stupid that is let me explain to you how stupid

Borrowing a Bitcoin is okay you borrow a Bitcoin in 2016 at $200 you hold that for a year two years maybe now you owe a $20,000 Bitcoin back when you borrow a Bitcoin you're shorting Bitcoin do you

Want a short Bitcoin are you stupid like borrowing Bitcoin has to be the dumbest thing anyone could ever possibly do in their entire life because if the price goes up 10x which it very often does you now owe 10x the

money why would you ever borrow Bitcoin you have to be stupid so what do you think of borrowing against it with US dollars or dollars and some it's different then you're like borrowing a Bitcoin and borrowing a

Dollar are different the dollars not going up in 10x value this year the dollars not going up like usually at all usually it goes down in value right because they keep printing it yeah Bitcoin becomes more scarce over time

Not less people lose their keys that happening happens the rate of issuance cuts in half if you borrow Bitcoin you just shoot yourself in the head like she's you're gonna owe the amount of money that you might have to pay back

And be honored X more than you borrowed who the wants to do that like I do I do think that the new concept that all these lenders are coming out now and trying to you know I could send a hundred Bitcoin to them and then borrow

Against it similar to like taking a HELOC out on a house treating it as sure that's fine it's it's it's you know perhaps it's a tax deferral regime yeah perhaps it's you know deferring occurring gains like depending on what

Jurisdiction you're in you know perhaps it's it's making it so you don't have to go to a bank and you might live in a country where the banks are assholes right it could be any of those things but none of those things are borrowing a

Bitcoin all of those things are borrowing dollars against your bitcoins collateral and furthermore I think all those things mostly suck too because bit coin and crypto was created to get rid of counterparties and now you're turning

The exchanges and these new defy centralized bullshit's CFI centralized five minutes you're creating the new banks out of these people the banks that we hate now got their start with gold as a hard currency and then handing out

Paper in fractional reserve on top of it and now people are doing the same thing with Bitcoin bitcoins a hard currency and then let's layer on all this Rube Goldberg on top of it to suck money out of the customers pockets and

Risk their privacy and risk their security and add extra counterparties where there weren't any that's not what crypto was designed for crypto was designed to get rid of those people so we should be using smart contracts

And distributed finance to get rid of all of that crap so if like an ex you mint your own coins you mint your own rewards your counterparty is yourself you're the one running the smart contract you're the one running the code

You are your own counterparty there's no order book to fill there's no like other person that you have to like hey I want to buy because anyone want to sell hey I want to sell those any want to buy can I find a counterparty here Oh something

Went wrong can I sue bit go now right none of that we built something better furthermore you were asking you know if someone's locks up a bunch and then they unlock does that benefit everyone else

Yes because you're all sharing the same profit inputs right so the system inflates a maximum a maximum of three point six nine percent after the first year and there's early in-state penalties and late end State penalties

And those are the three profit inputs to the stagers and it's divided by shares if you get it earlier at a lower share you're gonna have a much larger portion of that then if you got later in at a higher share price we had to lock up

More hacks to get the same amount of the share right God and then if someone ends their stake well now you're getting more if everybody ends their stake you personally would be just like being the only Bitcoin miner so in hex

We're monetizing time and Bitcoin they monetize hash rate so we're the first cryptocurrency that monetize is time just like banks do in the real world just like vesting periods do well the vesting periods is more the autistic but

So everybody knew current new coins are given to people that mind more with hash wait and it hacks more coins are given to people to get an earlier larger or longer so there is a there is a marginal contribution of individual users so when

They went oh sure he got it lock in the hex yeah interesting yeah it's virtual lending so people go hey you know in a bank people lend out your money actually no they don't it goes on the liability side of their

Asset book not on the not on the asset side of their ledger and they just use that as an excuse to get free money from the Fed your money doesn't get actually get lent out and in our system we have virtual lending when you're a stake or

Your virtual lent you're virtually lending value to the coins that are not staked and then holding those on state coins is receiving that value because reduce supply with static or increasing demand

Means higher price so there's a value transfer there right you can't sell your coins so this guy could sell his coins for more rod at virtual lending so well they're going to comp virtual lending trustless interest if you're given

Programmable money the first program should the interest stake it till you make it we got a lot of slogans lots like this I like to pump a metals domain to metals that's pretty rad foolish so the the

Will there be like a secondary market will people create your are you get you guys gonna create that do you think other noble will I'm not doing anything I'm doing nothing don't expect anything from me

Remember the Howey tests yeah okay I would assume that like any other useful thing free markets will exist we already know that it's gonna list on eath ether Delta and Fork Delta on day one because anyone can add it there that's the power

Of being in the right echo system of distributed finance you can't Vic you can't build on top of Bitcoin you can build on top of theorem and then everything plugs in with you and everyone can build on top of you so

Unless a rap a hex contract and makes take two tokens able to trade they can do that if someone wants to add margin to X contracts and let you like borrow extra hex to lock up more they could do that if if someone like if someone wants

To allow you to use hex as collateral for a loan we can do that all trust lessly all with smart contracts all with atomic swaps on the same network no Oracle's awesome real distributed finance if you try and build on Bitcoin

You're building on AOL have you built on the theorem currently you're building on the actual Internet and you shouldn't finance it's awesome it's really really cool and like what else yes I'm psyched psyched you should watch

The video I just made last night well as falling asleep I made a ten minute video and just walk through here's how you send the theorem of the contract here's how you enter stickers you start your stake here's I just walk through

Everything in the user interface I'll do another one later tonight and then you'll be able to see everything right like it's it's time you'll be able to start staking December 4th you'll be able to enter the adoption

Of fire with aetherium December 3rd you'll be able to free claim December 4th snapshots December 2nd 0 0 0 0 UTC for all of this so we're all of this awesome strategizing and theorizing and simulating of what we think will happen

You know you could just you could simulate your gains on stake XCOM this is a simulator where you can choose different worlds and say this is how many people are gonna claim and this is how much they're gonna stake and then

How much gains would I make right you can do all that there's somebody else made a spreadsheet that shows you you know how much hex you would get per eath based on your guess of how much eath is going to go on day one so we know day

One is gonna be about a billion well it's definitely gonna be a billion hacks and then day two is gonna be around five hundred million and then that number is gonna keep coming down as people claim so the more people to claim the lesser

Available to the doctrine amplifier and everyone's got their target their eyes on this day three fifty three when we pay all the unclaimed points plus all the late penalties plus the gossipy not where mount cox can't claim plus the

Multi-sig can't claim about two thirds of bitcoins supply is unlikely to be able to claim and that is all gonna get given to the stagers after being multiplied by adoption bonuses up to 3x for virality which is how many people

Claim of the possible total and critical mix which is how many people claimed of the possible total coins right so claim events and coin mass so your payout on day 353 is gonna be pretty gigantic now you could say well hey why don't I just

Steak at day 352 and then I would be ready for day 353 and earn all that sure you could do that but what's the share price gonna be that 5x higher 10x higher 20x higher right and then you're gonna get 20x less share and then the people

That the people that stake 3x longer are gonna get 3 x times the lower price right so they got in a lower price compounding their damage against you and then they also stake longer compounding their advantage against you I guess you

Could cancel out the longer because you could steak longer from that point right before the date 333 pad 2 right then people misunderstand this they go wasn't the price gonna dump right after day 53 well not from the

Auto stickers it's not because those claims happen over a year and then their minimum auto stakes end over a year so the last of the minimum out-of-state guys that claimed on day 350 he's going to end up ending his claim on day 7:01

Right so and if so if a bunch of stickers decide that they want to be able to end their claim right after day 353 you're gonna see it is public now if you see everyone's end in their stake in the same day is that the day you want to

End your stake probably not so we're the first crypto currency in the world with a chart a future market supply no when I say chart devs are working on the chart you might have to make your own chart you might have to go into either scan

And just look at all the transactions and make your own chart so my devs are working on it but you know me telling you that any work will occur well 100% not happen as we get closer to the launch date right so I need to need you

To understand that there would be no work hopefully that this chart is pretty and done before launch but if not someone else can build it right it's not that hard data is all public mm one of the one of the things that happened with

Peer-to-peer lending within the first two years of it kind of gaining popularity with Lending Club prosper all those peer-to-peer loan platforms was it originated with mom and pops being able to lend money right to somebody that

Wanted to consolidate debt credit more debt whatever it was for a personal loan it very quickly became banks creating BOTS that were just scraping these loans and making the loans all of the tier one but that's more efficient low real sue

The downside that that's mulching it push mom and pops out from getting actual return on their their quality loans so yeah everyone else a lower rate in terms of the bank came in scooped all of the quality loans out and then it

Became more pure the pure actual retail investors were getting the lower quality loans so we'll look them if the government keeps out handing if the government keeps handing out free money you're always going to have this problem

Like the the savers in an economy where money is given away for free by the government the savers will always be and the people trying to hunt yield will always be and the businesses will always take all the

Money so free free bar Obul cash amplifies the returns of businesses because they can deploy it to purchase goods and purchase business infrastructure which returns yield over time whereas the lenders that don't have

Such an opportunity like Mon pas that's retired they just get destroyed because they're not trying to start a business they're trying to survive and what they use to survive a lot of the time a CDS my current my grandparents survived

Using CD ladders where you would have a CD and then you'd always have one CD ending when you needed money and that's how they survived until they died so you know when the government's printing the money for free savers are always gonna

Get and businesses are always gonna do wonderfully and that's why you see you know retired people having the worst time of their wives' not being able to pay their bills because prices keep going up but they can't make any

Interest at all and businesses are on all-time highs with the S&P 500 at all-time highs you're gonna continue to see that as long as interest rates artificially low period so in theory like you were saying banks aren't gonna

Be involved in any anything in this but businesses could come in to hex and just turn start lending to people and kind of bring the coalition oh there's no see this is not one of those ecosystems where you have an order book that has

Lenders and borrowers and you're trying to order match them and you're worried about an order matching engine this is not that this is you versus the contract and then versus the contract so you can you can stake or n stake you can stake

Long you can stake short right unless you're a free claimer and then there's that minimum three hundred fifty day and there's also no emergency and sticking for you but you know for normal coins they can emerges hands take like you

Know adoption amplifier coins mm-hmm so you you don't have to worry about someone on the other side of the transaction ever because your counterparty pays you the interest is the smart

Contract that invented the currency in the first place so you are your own counterparty you're the one running the software there's no one that like does that make sense to you yeah I was referring to like the secondary market

Stuff that we were talking about earlier we're features yeah if sure if people want to so I'll give an example for contract someone can make and our system to prevent people from spamming the blockchain with extra transactions we

Reward you for consolidating your stake into a larger stake it's called bigger pays better and they do this in normal world and banks with a jumbo CD so if you have a jumbo City it pays about ten percent more interest and if you stake

For longer you make about twenty percent more interest for an extra year that's the math as it stands today we copied those things and we put them in our system every stake longer you get about 20 percent more interest per year in the

Form of shares in our system and if you stick bigger you can get up to about 10 percent more shares now because bigger pays better someone could create a contract that maxes out its bigger pays better bonus

And then sublets other little guys to jump in underneath him and and they share that that increased yield right so that could exist that's something that could exist on top and it could be totally decentralized with a smart

Contract it doesn't need to be centralized but if someone wants to do a centralized they could like a lot of exchanges do that now because there's other coins that you can stake and those staking coins don't have the time lock

Up system that we have they don't emulate CDs they don't value time we value time we monetize time so I would imagine other exchanges if other centralized exchanges are very likely to become stickers in the system if they

Hold a pool of people's funds I think ya know that that makes sense I mean just like what we were getting at with the businesses getting involved and things like that I think that exchanges make sense similar to what happened with iOS

And the block producers where exchanges with huge bags of gos just became the biggest block producers I think there's like 15 X ok X and some of the queue coin and a couple of the bigger ones became these massive stay kurz because

They just have tons of Eos on the exchange that they're making money off of mm-hmm so in theory if somebody their system pays out 1% per year u.s. yeah and and like I think the etherium Kasper stuff is also like under 4% but

You have insanely high costs in order to try and earn that so I don't consider either of those taking systems anywhere near competitive to what our space are you familiar are you familiar with icon with their art of them but I don't know

Anything about them yeah they've moved into a DPOs type situation now where they have 22 P reps public representatives that are you know helping with governance and whatnot so it's kind of like a digital nation so

You vote on on proposals and whatnot yeah I love it when stupid people vote on things cuz everything ends up so much to work out so much better let's get unqualified bag holders to vote on things hey you had money and

Bought something so obviously you can make good technical decisions no that's stupid well it's distributed you're giving someone else your stake okay whatever look I'm okay with security trade-offs

Right if people want to have less security for more throughs but cool if people have less security for more convenience cool as long as you know that's what you're doing right yeah digital ledger technology

Products are garbage they shouldn't pump because they don't require large liquidity to go into the systems to utilize the increases in efficiency right so if you build a better Excel people aren't gonna pay a

Billion dollars and some token to use your better Excel all right if you build some better thing right like cryptocurrencies are only useful for censorship resistance and getting economic mass for people that want to

Make more speculation it's irrational for people to invest a lot of money in a cryptocurrency that they can get all the benefits from with investing a smaller amount of money right so take a stable coin for instance right here's the US

Dollar which goes down to value all the time now we're going to make a virtual copy of that with extra counterparty risk and you don't get any interest whatsoever on it and you can't sue the bank and a sumo

Popular cryptocurrency in the world most transactions most on trained volume our most trade wine white I don't get it I don't understand it but that's what the market wants alright I guess I'm stupid the market wants it so be it

Right like this there's some things that I didn't understand I see doesn't happen either it's like alright these are the wrong guys doing the wrong thing with the wrong incentives they have no product market fit they'll never get any

Users any not even one so give them a billion dollars that makes sense why not like drives me crazy so in terms of like from a technical perspective would like my mom be able to participate or she actually going to need some sort of

Technical background in order to to start the staking process well I made a minute and 24 second long video that shows you how to import your keys which you probably don't have to do depending what kind of wall-e is if use electrum

Your keys are already in there if you use treasure your keys already in there you don't have to import anyway and if you even look at your private keys ever alright and then you just do your free claim do your stake takes a minute so if

You know how to copy and paste and you know how to go to a website you know to install a browser extension called meta mask you're done like you don't need this all you need you need internet access the browser the meta mask

Extension and you're done now if you want to free claim you also need a Bitcoin wallet because you're only able to free claim from Bitcoin wallet I suggest electrum I suggest electrum mycelium if you're on Android and Konomi

Of you're on Apple iPhone in that order and then you go to the website you go to go to exit win which isn't up yet it's not publicly it you can see the video on TDMA /x videos or time.40 x crypto you can watch this ten minute long video

Where i go through everything very slowly or you can go to forward slash hike script don't watch the minute and 24 second video which doesn't have the adoption amplifier in it but has free claiming staking

Importing your keys which probably don't probably don't need to do this so basically if your mom can get a browser install meta mask and you know by aetherium from somewhere then she can get in and stake and use the adoption

Amplifier and everything if she finds ether Delson Fork Delta then she could buy hacks from somebody else that yeah did those things right no well it is interesting all of the all of the incentives that you've added in there I

Mean I like the marginal contribution piece I like the the collation of pretty much everybody in there it's kind of like a cooperative effort it sounds like like everybody wants to monetize time towards it so it is interesting I'm

Definitely gonna check it out well we've got I mean we've got so many volunteers it's crazy like they translate the videos in Chinese they set up Chinese WeChat they they make memes and videos and set up interviews and you

Know our our community volunteers is pretty awesome like really neat really good people we all believe in the project and we all want to see it do great things and I'm in other chat rooms and I see how much activity there is and

Other things and I'm very very proud with where we are you know when aetherium launched the topic wasn't as popular as I am and didn't have as many good things going for it right like we're lucky to have to

Stand on the backs of giants that have built so many awesome things I mean even Bitcoin actually came through and did something awesome so Bitcoin recently added a feature that can actually pull out snapshots directly from the

Blockchain so you can actually like pull out the utx data set from the blockchain using a hidden RPC call and that didn't exist a year ago but it exists now well that's great because I just happen to need to pull out the UT Exocet so

Instead of having to do something that took about eight hours before it can take about five minutes well that's awesome because the ecosystem got better right and there's you know madam asked supports

Hardware wallets like legend treasure electrum supports hardware wall it's like ledger and treasure I don't have to do anything right so now my project supports ledger and treasure on the etherium and BTC side because the

Ecosystem got better right so they're like there's so many awesome new things that exist now that didn't exist when some of these other things launched I'm super psyched about it and since you're in to enter into aetherium now like I'm

Super bullish on NF T's and ER c720 ones and things like that just given what's in project local token yeah so is you alright the project I'm working on now grow your base basically lets people collect

Digital assets like digital tokenized assets and also like crypto collectibles and things like that and in terms of your thoughts on actual collectibles on etherium and the idea you don't like crypto collectibles now I

Hate them what about tokenized assets in terms of like just fire bias okay but you don't need a blockchain because no one's trying to censor it it's also stupid wasteful and inefficient if like none of

Those projects like you're spamming up the blockchain you don't need censorship resistance creating digital scarcity for pictures of cats is horrible if you like the cat you see take a screenshot of it

Stop trying to dream that that shit's worth money right it's dumb and it's not even good art it's low tier to your art like procedurally generated worlds or garbage for games real developers making real narratives with beginning as

And ends is the top tier and janitor you know so I don't like any business I don't like none fungible tokens I don't like EA or C 721 it's not a secure it hasn't been as battle-hardened the only successful use case spammed up

The blockchain had everyone with fees for a terrible shitty casual game where cats permeated on top of each other with shitty graphics like so what about only junior that given your interest in gaming like you mentioned

Before with overclocking and whatnot the the play to own concept where people are actually playing games with these collectibles in the games and they share radishes you're just you're getting kids addicted to gambling

Congrats your mind is open loop boxes and make 10x more money this year you want to make money addicting kids to some gambling do a loop box play then you'll make a billion dollars this year

You want to try and do crypto fake you know this isn't a loot box but we're trying to still kind of make the same kind of money kind of thing loot boxes is gonna outperform you so blogs and better games you don't agree with

Blockchain gaming it's terrible is your do you do you need censorship resistance or people trying to censor your game transactions No then why are you doing something slower and expensive and shittier with no track

Record of success when you could just do something for cheaper in a centralized database just like EA Sports does or just just like ah what's the name of that game counter terrorists win counter-strike thank you I was gonna say

Suit could be lots but you know I could go through a list of good memes um it's like or you could sell hats like Team Fortress 2 which aisle I think that's better that's a better model at least or some creativity involved there

Listen I've actually got another call that I have to do so I have to wrap this up do you want to do you want to talk about your stuff yeah sure if you guys are interested in learning more google grow your base check it out

Also I'm on YouTube attack crypto talked about everything around simplifying some of these concepts with game theory and just using my backgrounds and you know I mixed to try and figure out crypto economics around all these different

Projects out there but if you guys are watching on my channel Richard where can people learn more about X sure so I love being me because everyone in the world calls me a scammer because they hate that I'm building something better than

What they've got it makes them very angry so I don't have any way you could possibly give me money I don't have a shopping cart where you can give me a credit card I don't have a crypto address where you can send me crypto and

It's been this way for years no I've never had any of those things ever since I've had the name Richard Hart so I give everything away for free I wrote self-help books and t10 ME forged slash survived

Some check them out I've got free crypto trading chat which you should never trade but if you're forced to and you just can't take my good advice there you go t dummy forward slash straight charts

General krypt chat chat straight hacks heck scripta t10 ebony /x crypto follow it on twitter /x crypto got a hundred k followers across YouTube and Twitter Richard Hart on YouTube and Richard Hart win on Twitter if you want

To donate money to charity and they accept crypto go to Sen s morgue what else has a free ebooks free tokens go to pump a Mentalist calm if you want a 10% bonus on free claiming or sending aetherium to the adoption amplifier to

Turn into hex go to hex . win if you don't want the extra 10% bonus h CX dot win yeah so free tokens free books free chat free videos everything's free um yeah physical talking man I'm sorry that I had to do

This you know just an hour but yeah usually a monarchy for a few yeah that's a good conversation I like that good talk to me man alright man so anytime you want to do another one you just let me know

Yeah yeah happy to it'll be fun pleasure that's it for my interview with Richard Hart it was a lot of fun sitting down with him I'm gonna try and do another one at some point in 2020 just to get an update on his project hex also giving

You guys an update on grow your base and where we're at so that is it for this episode if you liked it don't forget to slap a like it helps the channel a lot and don't forget to subscribe to hack your crypto education and I will see you

On the next episode of pack crypto

Related Videos

Hello the Republicans and welcome to another video of my cryptocurrency news series where I'm looking at the news that happened last week now today's 28...
What's up crypto gang welcome back to another episode if you guys are doing here we do a giveaway at the beginning of every single episode and today's w...
What's going on guys crypto jeremy here back with xrp video hope you guys have a fantastic day thank you guys so much for tuning in to another video and the...
What's up guys kevin cage here just wanted to do a quick market update on this monday so as we can see ada ada is down 11 today we noticed that it is coming...
Hello the Koopalings and welcome to another video in my cryptocurrency event overview series the aim of the series is to find any upcoming cryptocurrency events...
Ladies and gentlemen people of the internet welcome back to yet another episode of crypto over coffee hope you're doing well today and if you're new her...
Hey guys welcome back so first of all I want to start as usual by thanking everybody who's been liking subscribing and sharing my content you're helping...
Hi i'm brad garland house the ceo here at ripple it's an honor and really a privilege for us to be one of the founding members of the international asso...
Hello the cubicles and welcome to another video maker of the currency event over the series the aim of the series is to find any upcoming the currency events an...
I have to apologize to everybody because I've been promoting a company who only has their best interests at heart top salesmen best interests at heart and n...
It is Monday and you know what that means another episode of Krypto segments what's going out everybody it's your boy Krypto Bobby I hope you were havin...
What's going on everybody Alex back was another cryptocurrency video but today we're going to be talking about how to control yourself how to emotionall...
Hey guys welcome back first off I want to thank everyone who's been liking subscribing and sharing my content you guys rule and I appreciate all the constan...
Live from the USA hoping you get paid every day this stuff boasts a Bitcoin the crease though of creeped up is avoid BK and if you don't like me you must no...
Okay come down here boom that would be picture-perfect beautiful guys look at this we actually have this candle come down right on this line right here right ab...
Wow you guys are going to want to check this out guys as you may know Bitcoin has decreased a few hundred dollars as of about midnight last night we have some i...
What's going on guys crypto jeremy here back with xrp video hope you guys had a fantastic day thank you guys so much for tuning in to another video today&#3...
Hello tokens and welcome to another video nice update now today's third of June and I'm looking at news that happened from 28th of May until today I alw...
hello it's Brad Lori or blockchain Brad and today we're speaking exclusively with icon many of you know it you've known it for years and they'r...
People what's going on this an update on Tron all right so the market right now market cap is 431 billion we've got a Bitcoin dominance roughly 34 perce...