Hashing It Out
Hashing It Out

Episode 120 · 1 month ago

Flash Hash 10/09/22

ABOUT THIS EPISODE

Executive Producer, Christian, attempts to keep Corey, Dee, and Jessie on topic and within two a minutes a piece on three timely topics.

This episode includes Nasdaq trading crytpo, proof-of-work going extinct, and VCs highjacking growth in new networks.

Watch on YouTube.

Thanks for listening to this episode of flash Hash. Check out the link to our YouTube page to watch flash Hash and get an even better experience. Now on with the show, Welcome back to flash Hash, everybody. We've got three topics of the week. Each of our hosts will get two minutes to talk about this topic, so hopefully everyone has done their research. This week, We're going to have everybody do a little introduction. We'll start off with Dr Corey Petty. Introduce yourself. Hi, I'm Dr Corey Petty. I'm a I'm the smart guy here. M m m m m m mm. And uh. In the square below, we have Jesse Santiago. Anything to say about yourself, sir, I'm the practical one. I'd like to think accurate. That is very accurate. Alright, last never released, we have Dee Ferguson. I know we were all putting up our planet ear rings today. I am d I am also known as a K A Black doord On, a k A Bitcoin. Don't do don't make that face. Core everybody comes to me black sword On. I don't think anybody does. Um. There's a group of teenagers in a small town in the Midwest that I talked to and they actually had fight monsters. That's sort of sorry. Uh, they don't know they're talking to me though. And I'm the guy that brings the color. Let it sit, Let it sit, need to sit, Let it sit. We got it, We got it all right. And I am sir. Is it okay? I have a black friends yep, and uh, my name is Christian and the producer. Try and wrangle all these guys and I'm doing a really great job so far. But first topic of the day, We're gonna start with you, Corey. We're gonna mix it up a little bit. You have two minutes on. I was hoping you wouldn't stop with me because I don't think they read the article. Uh that's where I'm starting with you, because then you usually have stuff to say and they will bounce off of it. So you've got two minutes Nasdaq trading bitcoin and Eve. Your two minutes starts now. Yes, I read the article that was posted, um and NASDAC apparently is thinking about getting into trading bitcoin and cryptocurrencies. Doesn't necessarily say which cryptocurrencies as far as I can tell. And also they're only thinking about it, so for the longest time Nasdak has been UM providing services to various exchanges, but if they decide to jump into the ring, um they're going, at least in the United States, they're going to be contenders with you know, Jim and I coin based on and so forth. So custodial service is for exchanging cryptocurrencies. And it looks...

...like they've recently had a partnership with a large UH firm and Brazil called XP, which is like another indication that there thinking about taking another steps. So they have they've basically been providing services to exchanges. It's like, you know what exchanges need because cryptocurrency exchanges for the longest time have just sucked because they don't have these things. And then they created a twelve session course on UM things to look out for in terms of regulations, taxes, the landscape of these things that was actually created by someone who has no idea what cryptocurrency is. But it's just a person you hire to make courses, at least as far as I can tell when I looked them up. And then now they've partnered with the Brazil firm to do something, so it's like whatever they're just they're just trying to play their course, I don't think they're ever going to enter the ring to become real contenders with like the large exchanges like coin Base and jim and I and those others that are you know, in the at least the United States. Seconds, I'll keep going. Uh. If they do, and they like full force come into it, then I think that would be pretty interesting because a lot of the larger financial firms are probably more comfortable or already have accounts with a large number of kind of like I don't know, I don't know. The great word is equity room to buy stuff, whatever that word is in NASDACK versus some of the smaller places like coin Base. Time good, good good, all right, Uh, Jesse, Mr Practical, We've got two minutes to talk about Nasdaq trading all of this crypto two misstress now. So NASDAC is the first I'm going to read this off. It's the world's first electronic exchange, and it operates in markets, has one clearinghouse and five cent role securities depositories in the US and Europe. Most of the world's technology giants are listed on the NASTACK. So I think that Corey is wrong. I think the NASADAC will list b TC and e t H. But the thing is, UM, I think black Rock is going to need a lot of different exchanges to push it's it's funding through. So I think they're gonna use coin Base. They're probably gonna push it through NASDAC because of old relationships. Probably, UM. I think that a lot of the there's there's a there's a an aspect of the article that details surveillance tools that um Nazadak provided Gemini and bit goo UM and coin Base with. So it's called Veriffin and another uh surveillance software. So I think that I think that the NASDAC will actually list bitcoin and ethereum like seconds. Do you want to keep this time for later? See what happens? You want to...

...keep talking about You'll pass it. I'll pass it to D. Alright, D, You've got an extra fourty seconds if you want it. But your two minutes starts now, Okay, can I take you? Yeah, you can take it if you want to go for it. All right. I'd like to take the first fifteen five moment of silence because I'm about to wreck these two. That's too long. Yeah, there is a moment of silence. Not gonna happen. But Matris for the record, UM, so I'm gonna pick you back off of Jesse here. Jesse's right, coy is wrong. Um, and it is because it's because well, I will say that there's a there's a middle ground between those two that that that they just they submitted a request. So I've been approved yet by the old governments for them to trade custodio lee for rich people. Um, I wanna bull old and that that last thing that I just said, this is gonna be for rich people. So if you're if you're a broke sucker, I got I got news for you. It's not gonna be for you. Um, but they're gonna do it because it aligns with Nasdack. Nasdack is the tech exchange, as just you just outlined completely off the cuff. By the way, Jesse, I appreciate you digging a little bit further. The first layer. It's pretty dope. I did not you guys both point nineteen trillion, right, So they can't push all that through point bays. Personal foul, personal foul, no personal foul. So what the NASDAC did is they traded ninety What did you just say this nineteen trillion dollars worth of tech security stocks. Um, they're gonna do it because bitcoin is techi, right, I mean, anytime there's not a market, I'm the nerdy tech guy of my friends and my family. What's cool at thet with crypto? Big tech, nerdy guy, nerdy tech guy that knows how to reset as a router. And I'm like, okay, um, not much listen to my show because I'm tired to telling you, be telling you for a decade. Um. So it's NASAC is going to trade bit quin and ethereum because those are the two that look like they're the safest right now. I don't think they're gonna dive down deep into the old chicken dot farm, if you know what I'm saying. Uh yeah, it was endorsement from Dmitrich. So um, that's it. I don't, I don't. I don't really want to date. I'm not gonna debate because I didn't dig as deep as these two fellas did. But I do know they're gonna do it because it's safe, and it's a tech plate and lines with the brand, and they need that money. They like alright, market, somebody do that thing. Market put in the comments it's...

...been noted in the record. Corey is going to remember strictly for the vengeance suggest you get to start out with that is things I told you so about. He got a penalty a minute thirty message. No penalties were handed out by me. That's not your per view. Are you Drew carry right now? Are you Drew carrying us? I'm taking the points I'm taking away none of the matter. Yes, if only I've paid that Drew carry mud to be insane? All right? Next topic is proof of work going to go extinct? Starting with you once again, Dr Corey at a two minutes starting no, No, I agree? Ah? Why so what do you look at the major differences between proof of work and proof of mistake? Um, because a tremendous amount of subtle differences, and what type of security guarantees they offer, and kind of what properties they offer for the overall blockchain in terms of security and liveness and retieability and all this stuff. It just just looking at the fundamental difference of how it works. With proof of work, you take an external resource and then you apply it to the blockchain and the mints tokens, So the value of the minted tokens comes from some resource that's external to the blockchain, and proof of stakes the opposite, the value of the token comes from the internal resource of the blockchain. UM. I think just based on that differentiation, there will be some form of proof of work always because people will like the idea of thinking about a distribution of value of being more fair outside and external that the underlying blockchain can't can't control. So for bitcoin, that's power as it's converted from shing into the blockchain. So that's where the like the base layer value comes from. Hard to determine that for a proof of steake blockchain, but then you look it into like some of those more subtle differences in terms of a proof of work. Blockchain will always move forward, so it always has liveness, but it has probabilistic finality, meaning that you don't it takes a long time, depending upon how it works too. Then come to the conclusion that it's given transaction and blockchain cannot change. So like it's always going to exist because it's different and so you have a different bunch of different ways to come to distribute a consensus and it being uh that's sufficiently diverse one it should always exist. Yeah, it's perfect timing. What did you I got my timings down, you got this. He talks that It's true. I talk, good talk, good sir. All right, Jesse, you already added in a little bit of an opinion earlier, but your official two minutes starts now. Yeah, I agree with what...

Corey was saying. I think that it's to to do what deep does create an analogy in a different domain. It's like, it's like combustion engine cars versus electric vehicles. You know, electric vehicles may be cool because people think they're green, but there are people who just want to go fast, uh and burn gasoline and that's fast man. Yeah, okay, but the acceleration, the acceleration is is from zeer to sixty is faster and electric because they have direct torque. But for for gas, I think gas cars, combustion engine cars, they go faster with the top higher top speed unless you go hybrid. Like um man, if you had caught me a few years ago, I was totally into this. But yeah, no, not combustion engines. With that proof of work, yeah no, it's yeah, proof of work will always have a place. I think Corey's right, It's just that it offers a different way of converting, like converting a a given resource that is actually, like Cory was saying, is external to the blockchain versus like you know, proof of steak, which is like tokens that are are minted. Um. Actually, that's that's an interesting point. So like a lot of people have been talking about the centralization that proof of steak brings, where um, you really can directly buy your way into having tokens versus in proof of work, you know, generally you bring some sort of um like Corey is saying, external resource, whether that's you know, a hard drive or whether that's um some sort of UM a sig GPU CPU to actually crunch through the the hashing function. So I think I think proof of work will always have a place perfectly charming. Again, there is good. If you're timing isn't perfect, you're gonna look around. So I mean, get ready, You've got two minutes. Is proof of work going to go at staying time starts? Now? I am going to go away against what anyone thought I would say here, and I'm gonna say yes. I'm gonna drop that bomb, all right. And the reason I'm dropping the bomb of yes is because I feel like the value that proven work supports is a narrative that is going to also dwindle down and go extinct. That that that separation of money and state, that the real political reasons why Big Quinn got that big old blaze to begin with. We're just ideologies that will never be popular because that that crypto anarchy and archy is only fun on paper. Anarchy is not fun in...

...real life. And people like to disagree with me because it's like, no, I can be totally cool and calm and not chaotic with an anarchy as a foot. No, you can't. When somebody punches you in the face and takes your stuff, you no longer like anarchy. Uh. And I know you're gonna oh, that's what the definition of argue. Okay, cool, And I want to argue that we're not gonna go into that because it's stupid. It goes down to a stupid cold to sack, and I don't live on stupid street. All right. Now, it's gonna go extinct because what ethery improved is that you don't have to have all that physical stuff to be secure and run a network. And that's what governments like they like to have control over things. So if it ever came to it and they wanted to see b DC where they wanted something that they could have absolute control over by just pouring a bunch of money into it, they'll do that. We'll do that real fast. So I do think that proof of work will go extinct because there will be no need to support the narrative that kind of actually sports the energy being spent. So without that narrative, that energy doesn't need to be spent, and that narrative it will didn't do over time. So that was actually like down to the second perfect. So he started to stop. He started to stop watch like Alan's screen, like he's been He's been rehearsing this pat whole week. No, no, all right, stopping. Number three was a bit about do vcs hijack growth by blindly injecting capital into different networks? So we've got two minutes for Corey starting now. Let's see do vcs hijack growth? Um? Yes, if you mean by hijack growth, change the direction in which growth occurs. UM's you think about what he was just talking about the original narrative of bitcoin was um very much an anti government. Uh no, jurisdictional public good money UM that isn't necessarily supported by a VC firm throwing money at a project and the efforts of gaining value off of that project in the long term, because the growth the point of a VC is to make money. It's it's not too now. They will always have some form of UM directional investment strategy, but it's in the end to make money. They think that that investment strategy, whether it be impact investing or the tech market or crypto, it's it's we think this thing will grow tremendously. Therefore we're injecting money in it earlier now when it's a reprofits later. And so the whole idea of a VC is to make money. And what that does is it changes think the things that they fund. It changes...

...their mentality to something that isn't focused on making a public good. Their focuses on appeasing shareholders and listening to vcs so that they can maintain their capital. They need to stay afloat. So I think that definitely vcs have they do hijack the growth by throwing money into something that sometimes they don't understand because they're hyped up on a market that is incredibly overhyped uh, and it it dwindles that original narrative or potential to grow a company in such a way that allows you to build in the manner required to make public goods. Just a couple of seconds left, good time once again, Jesse, you're awful client during Corey's turn this time, So to be curious about your thoughts, you've got two minutes during now. So when I looked up, when I looked up discount rates that vcs use and why they justify such steep rates. So so, first off, UM, when you're valuing the investment of a dollar into a business, UM, different UH entities use different UM rates and different and have different like risk profiles for those investments. UM. For VC firms in the crypto space, they generally use discount rates anywhere between thirty to se and have time horizons for recouping their investments in in a period of two to four years. So UH, to kind of what Corey was saying, they they can and will change the direction of a project if it means that they're not on schedule to make their money back. UM. They also ensure that you know there's enough exit liquidity for them to pull their money out as well. UM and generally the terms of agreement for token distributions if they go token versus equity UM are in favor of vcs before the founders, before even the founders um. So so Yes, to answer the question, Yes, VC firms can definitely hijack the growth of startups. That said, it's kind of weird where we have like the model of like most Dows existing as some sort of source of funding for a lot of startups, when the Dow is not the subject matter expert in the in the actual content matter that these startups are trying to build a business, and so it makes it a little bit hard for vcs or or this entity that represents like a Dow treasury to be able to completely understand the goals and processes of the startups to help them succeed. Okay, nice rap, dude, you are spitting so sobering top that d I...

...don't think I can. Well if you've got two minutes to try starting now, do vcs hijack growth by blindly injecting capital? I say yes, they absolutely hijack the growth of it all. I think like I think Corey he said it, and Jesse you said it as well. Just more practical. He said, uh that they're just trying to make a return on that old investment. You know what I'm saying. And I the reason I vcs were one get on my nerves because I only see a dude with a long ponytail with his hands behind his back walking across the stage saying that he wants to save the world and those things are so annoying, man, Like, they're all they all want to change the world, and it's annoying because it's like, no, you don't, bro, you want to make profit, you're trying to get rich. Just say you want to get rich. You think it's a good idea, so you put money on the right horse, and that horse wins, you get rich. Like, I'd be cooler if i'd be less annoyed if you just said I want to get rich. It's like it's a refreshing It's right, is a VC? Sorry? Fun? Yeah, how you must have? He was like, ultra rich is just throwing money at things. And then just listen to the conversations that having with people. I'm doing a little something, trying a little something something on the side, but I'm straight from the get go, Hey, how are you making money? How are you? Are you making any money? And then when I start to see sales, I'm like, that's what I'm talking about. Now, When do I get my money? Because you're getting your on one mind now because I get a little bit sorry, do he's VC side jack growth? Absolutely, they hijack growth because I think that they they see one little aspect of one protocol, one thing like n f T S for example, and they're like, pour all the money in that, let's get something. And then the whole crypto industry gets sidetracked with n f t s, which nine seven percent of them suck bows, right, and so you now have an entire industry that's hijacked by VCS blind thing. They made a lot of money off narful, all right, Well that was flashash. Anybody's watching or listening to our YouTube page, watch other things, find us on sounder and listen to all our other things too. Com hashing it out dot com. We have a website, com coact website hash it out dot com. Hashing it out dot com. It's h A S H I N G I T O U T DOT C O M. You can even use www dot if you're six year above o.

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