Bobby Lee: Bitcoins Value Defined For the first time in humanity we now have a digital currency that is information based duh, information based digital currency, right? But has definitive transferable value, that means I can give you some of my digital currency for you to have it, of which I no longer have it. And this mimics the physical reality, physical world, where I can give you a glass of beer and you will have it, I dont have it anymore. Does that make sense?
So this is the, the really cool thing and this is real, this is a really big deal, this is real. This is not hocus pocus, this is not virtual currencies of the 1980s, 1990s okay? Were talking about cryptocurrencies. Thats why Bitcoin is different.
So, is Bitcoin valuable? What do you guys think? Yes, no? I have a, let me pull it out. laugh I have a prerelease of a new physical Bitcoin that BTCC will be selling in about two weeks.
I wont tell you too much about it, its prerelease. But this is valuable, if I toss it over to you Ive essentially given you access Voiceover Throw it. everyone laughs Nice one. If you, if you toss me some US dollars we can do that exchange. Yeah, but this is, in this case its physical I could toss it to you and itll be physical, you catch it. Right?
But its truly valuable because once I toss it to you its out of my hands and thats what Bitcoin does electronically but made into physical format. Why is this valuable other than the piece of metal? Well because, a few things. Its got uniquely great features.
So until Bitcoin was invented nothing in the world was able to encapsulate the functionality, the featureset that Bitcoin gave us. Where if physical we could give you money, gold, we could give you stocks or bonds. Give you a house and so on, or a title to a house.
But with Bitcoin now we can have a global network for payments, with a fixed supply of Bitcoins, 21 million, of which this is one. We can have a decentralized payment, decentralized nature of it. What that means is the Bitcoin that I give you lets say, does not depend on some company telling you many Bitcoins you own. Does that make sense?
So, for the first time you can now have Bitcoin that is truly, truly decentralized from any other company. Now even though our company, my company BTCC we run a Bitcoin exchange, Bitcoin wallet service and all that, we are a centralized service. But even if our company goes away or there is no Bitcoin company you can still own Bitcoin without depending on any other central government, any sort of university or any sort of company. Okay, and of course very low fees. So this is truly faster, better, cheaper.
So why I like Bitcoin to summarize, for the first time we actually have a digital asset. Think about that. All the assets you own everyone in this room, other than the ones of the few of you that own Bitcoin, all of your assets, all of the things that you own, that youve worked hard for in your life, are physical in nature.
The other types of assets are intangible. Like for example your Stanford education, or your knowledge about the world. Right? But any other tangible assets always, always physical in nature.
Everything from the money you own, having a wallet, the precious metals gold and silver, the stocks and bonds, even real estate. All physical in nature. Right? Some of you, do any of you own domain names?
Yes, so domain name comes close. But email addresses are actually not digital assets. Would all of you have email accounts?
But you dont own them. Right? A moments notice, Gmail can stop your account or lock you out. Or iCloud, Apple iCloud could. Right?
So you dont own your email address any more than, its more like a permission for you to use it. Domain names, you sort of own them but its at the mercy of the domain name regisratation companies. They can make a mistake or they could it away from you. Right?
And what if, Ive heard some horror stories with domain names. But the point is none of you, if you dont own Bitcoin or digital cryptocurrencies, none of you own digital assets. Dont we already live in a internet digital age? Yes?
Who still living in the Stone Age? So given that we live in Digital Age Bitcoin is very important. Bitcoin and cryptocurrency is very important because for now we really have digital assets okay? Second thing is, its not just any digital assets, its not just, seashells or peanuts or pieces of rice or candies.
Because this is a strictly limited and scarce digital asset. 20 million, 21 million sounds like a lot. But in the grand world of things it actually comes down to about 0.003 per person in the world. Right?
Its only 31000s per person if you spread it all around seven billion people. So what happens is Bitcoin was actually created down to eight decimal places. So you have 100 million units in each Bitcoin so that way people could use it in smaller things. So thats what we call, for each Bitcoin we call 1 million Bits, okay?
So thats why its, even though thats a lot but its still scarce and limited. Noone can make more Bitcoins, does that make sense? You cannot print them, no company can issue more Bitcoins like they can issue virtual currencies.
So, for example, how many of you belong to airline frequent flyer miles, hotel reward points? Yeah. So those points you have there actually are centralized by the companies. Right? Thats why noone in their right mind would spend their allowance or spend their monthly paycheck to buy more airline miles.
Or, do any of you do that? Do you buy more hotel points, they ask, they always offer to they say, Hey, do you want to buy more miles? Im like, Yeah, right. And the reason I say that is because the airline miles are ultimately controlled and configured by the airlines and they can do whatever they want.
They can increase the redemption price. They can make it invalid. They can say your miles wont expire and then a few years later they say miles do expire. You know, they change the rules on you.
But with a decentralized cryptocurrency that will never happen, okay. So if you own for example, 21 Bitcoins, then you will always have at least 1 millionth of the supply of the whole worlds Bitcoin. Okay, so lastly, those two features of it being digital and being scarce, it actually makes for a good payment system. So today, Bitcoin is not yet the worlds best payment system. Right, you have really good payment systems like Paypal.
In China theres Alipay, theres WeChat pay, theres Venmo in the US, right. Theres a lot of good payment systems around the world already. Or even just physical cash. Bitcoin is not yet the most revolutionary, its not yet the best payment system, we dont use it to buy coffee yet. But Bitcoin has a potential because of it being a great digital currency.
Okay, so for me thats a bonus and thats why I like Bitcoin.