1 00:00:05,000 --> 00:00:05,890 Rinat: You've made it. 2 00:00:05,909 --> 00:00:06,959 Congratulations. 3 00:00:07,070 --> 00:00:09,149 You made it to our podcast. 4 00:00:09,339 --> 00:00:11,239 Tech Talk with Amit and Rinat. 5 00:00:11,260 --> 00:00:14,820 A podcast where Amit and I talk about all things tech. 6 00:00:15,230 --> 00:00:16,859 Today we're going to talk about Bitcoin. 7 00:00:17,839 --> 00:00:23,309 Specifically, Bitcoin halving and we're going to talk about what it is, how 8 00:00:23,369 --> 00:00:28,739 does it impact the market, the society and the cryptocurrency landscape. 9 00:00:29,199 --> 00:00:32,969 So very excited to talk about cryptocurrency, Bitcoin 10 00:00:32,999 --> 00:00:34,529 and Bitcoin halving today. 11 00:00:34,869 --> 00:00:36,929 Thanks Amit for coming up with this. 12 00:00:37,219 --> 00:00:38,959 It's a very fitting topic. 13 00:00:38,979 --> 00:00:40,399 Everyone's going to be talking about it. 14 00:00:40,399 --> 00:00:45,099 And actually the way prices are going, everyone's already been talking about 15 00:00:45,099 --> 00:00:47,059 it and anticipating what will happen. 16 00:00:47,059 --> 00:00:50,749 And we're going to probably talk about our two cents on it as well. 17 00:00:50,819 --> 00:00:52,109 Yeah, hang tight. 18 00:00:52,279 --> 00:00:54,639 Let's let's explore Bitcoin halving. 19 00:00:54,644 --> 00:00:56,314 Amit: Thanks Rinat for that introduction. 20 00:00:56,334 --> 00:00:59,444 I wanted to pick up this topic because this is the most trending 21 00:00:59,444 --> 00:01:03,124 topic at the moment because of the surge in the Bitcoin pricing. 22 00:01:03,184 --> 00:01:05,705 A lot of our listeners who are not into Bitcoin. 23 00:01:06,205 --> 00:01:09,315 They should know that Bitcoin prices have suddenly shot up in 24 00:01:09,315 --> 00:01:12,865 the last couple of months, and it has been rising consistently. 25 00:01:13,325 --> 00:01:17,045 For people who already know about Bitcoin and who hold Bitcoins, 26 00:01:17,405 --> 00:01:18,605 they must know what's happening. 27 00:01:18,615 --> 00:01:19,525 The rally is happening. 28 00:01:19,915 --> 00:01:22,935 And it's in the anticipation of the Bitcoin halving event. 29 00:01:23,345 --> 00:01:26,155 So let's get into what the halving means, 30 00:01:26,655 --> 00:01:30,165 Rinat: there are a lot of people who doesn't know what Bitcoin or 31 00:01:30,215 --> 00:01:33,665 cryptocurrency or alt coins are. 32 00:01:33,965 --> 00:01:38,625 But I feel like after 2020 and 2021, when we've seen the last 33 00:01:39,155 --> 00:01:40,925 surge in cryptocurrency pricing. 34 00:01:41,555 --> 00:01:44,995 At that time, most of the world heard the name. 35 00:01:44,995 --> 00:01:50,225 Even if they didn't know the inner technical workings of it but they did hear 36 00:01:50,395 --> 00:01:53,125 the name bitcoin in one way or another. 37 00:01:53,375 --> 00:01:57,295 It's always good to know about this technology because whether or not bitcoin 38 00:01:57,295 --> 00:02:02,300 stays , the technology underlying it is definitely here to stay because that adds 39 00:02:02,300 --> 00:02:05,340 a lot of value intrinsic or otherwise. 40 00:02:05,740 --> 00:02:09,570 Before we talk about Bitcoin halving, maybe it's worthwhile to just 41 00:02:09,570 --> 00:02:11,180 talk about what is cryptocurrency. 42 00:02:11,430 --> 00:02:12,810 We had a Bitcoin. 43 00:02:13,745 --> 00:02:19,915 episode a long time ago when it was popular and trending back in 2020 44 00:02:19,915 --> 00:02:25,495 or 2021, but we've gathered more subscribers and regular listeners. 45 00:02:25,565 --> 00:02:29,735 And there's always, possibility that you've not known about it. 46 00:02:29,775 --> 00:02:34,345 So , let me just give a brief outline of what it is. 47 00:02:34,405 --> 00:02:39,425 So I suppose the first question I'll start with a very basic question. 48 00:02:39,425 --> 00:02:44,675 So the first thing to think about is if it resides within computer , why can't 49 00:02:44,675 --> 00:02:48,805 I just copy and paste and make more bitcoins ? we'll start with answering 50 00:02:48,815 --> 00:02:51,465 that question is that we can't do that. 51 00:02:51,525 --> 00:02:52,715 No one can do that. 52 00:02:52,785 --> 00:02:57,095 And if it was possible, then there won't be any value of any currency 53 00:02:57,095 --> 00:03:01,055 because everyone would be doing it and it would be like a million percent 54 00:03:01,095 --> 00:03:04,015 inflation overnight or over an hour. 55 00:03:04,015 --> 00:03:09,565 So for a coin or a currency to work, it has to have that kind of 56 00:03:09,615 --> 00:03:12,295 regulated circulation in the market. 57 00:03:12,545 --> 00:03:14,875 Otherwise everyone would have as many as they like. 58 00:03:14,875 --> 00:03:16,185 And that doesn't work. 59 00:03:16,765 --> 00:03:17,155 Okay. 60 00:03:17,205 --> 00:03:21,185 What is crypto currency the name crypto currency. 61 00:03:21,205 --> 00:03:27,200 It, you can guess it's a currency of a sort, and it is protected by 62 00:03:27,220 --> 00:03:33,540 cryptography which is widely used in many other things in cyber security. 63 00:03:33,590 --> 00:03:38,760 You have many ways of securing data and any kind of 64 00:03:38,760 --> 00:03:40,820 transactions using cryptography. 65 00:03:40,870 --> 00:03:44,560 It's, using an underlying technology called blockchain technology. 66 00:03:44,980 --> 00:03:50,160 Blockchain technology is basically many people or many organizations around the 67 00:03:50,160 --> 00:03:58,920 world validate how much currency everyone in the world has at all times and because 68 00:03:58,920 --> 00:04:03,400 it's validated by many people around many different countries, there is no 69 00:04:03,400 --> 00:04:06,010 central authority who can manipulate it. 70 00:04:06,250 --> 00:04:11,220 As a result, it's a fully independent of any government or any kind of government. 71 00:04:11,780 --> 00:04:15,100 Third party organization, which is what the main attraction 72 00:04:15,160 --> 00:04:16,660 is for cryptocurrencies. 73 00:04:17,820 --> 00:04:22,310 Uh, Bitcoin one of the first currency that uses this technology 74 00:04:22,360 --> 00:04:24,240 and then became popular. 75 00:04:24,650 --> 00:04:26,880 There are many other cryptocurrencies as well. 76 00:04:26,910 --> 00:04:28,220 Second popular, is Ethereum. 77 00:04:29,390 --> 00:04:33,320 And then there are many hundreds and thousands of Currencies that are 78 00:04:33,330 --> 00:04:38,350 in circulation in the market today, and there are exchanges where you 79 00:04:38,350 --> 00:04:43,000 can, transfer each of these things between each other and also buy them. 80 00:04:43,630 --> 00:04:46,700 So I guess that's a very brief introduction of 81 00:04:46,900 --> 00:04:48,635 cryptocurrency and Bitcoin. 82 00:04:48,635 --> 00:04:51,325 , Amit: uh, one of the things that you mentioned is that 83 00:04:51,805 --> 00:04:53,165 it's maintained by many people. 84 00:04:53,205 --> 00:04:56,215 So that's why it's called a decentralized currency because 85 00:04:56,215 --> 00:04:57,775 it's decentralized in nature. 86 00:04:58,155 --> 00:05:02,025 Most of the currencies in the world are maintained by central banks. 87 00:05:02,085 --> 00:05:05,515 The pound is maintained by the central bank of UK, which is the bank of England. 88 00:05:05,945 --> 00:05:09,795 And the the U S dollar is maintained by the federal reserve. 89 00:05:10,075 --> 00:05:13,915 So the circulation and the demand and everything is maintained by a 90 00:05:13,915 --> 00:05:18,715 central body, but with Bitcoin that's not the case because many different 91 00:05:18,715 --> 00:05:23,445 entities can download the blockchain and They can maintain the ledger. 92 00:05:23,655 --> 00:05:25,395 So it has a decentralized nature. 93 00:05:25,395 --> 00:05:29,285 You can go to the Bitcoin website or the blockchain website and download 94 00:05:29,465 --> 00:05:33,820 the entire Bitcoin blockchain and you can see the transactions. 95 00:05:33,820 --> 00:05:37,010 Of course, everything is encrypted, so you will not be 96 00:05:37,010 --> 00:05:39,500 able to identify people by names. 97 00:05:39,770 --> 00:05:45,435 But you, if you can get a string of their digital wallet, then, and if you can track 98 00:05:45,435 --> 00:05:49,945 the currency and if you know someone's digital wallet ID, then you can trace all 99 00:05:49,945 --> 00:05:54,225 the transactions that they have ever done or from one person to another person. 100 00:05:55,385 --> 00:05:59,455 And to maintain a blockchain, you basically have miners and 101 00:05:59,505 --> 00:06:02,485 Bitcoin halving is actually related to this mining activity. 102 00:06:03,950 --> 00:06:09,120 Bitcoin, when it was invented by Satoshi nakamoto, and it was the first 103 00:06:09,140 --> 00:06:11,400 cryptocurrency, it's a digital currency. 104 00:06:11,660 --> 00:06:15,290 And the main problem that they were trying to solve is how do you prevent 105 00:06:15,320 --> 00:06:17,700 cut copy paste in a digital world? 106 00:06:18,240 --> 00:06:21,210 And the way he came up the solution with which he came up 107 00:06:21,210 --> 00:06:22,540 with was basically blockchain. 108 00:06:23,270 --> 00:06:25,970 And blockchain means, there are different blocks. 109 00:06:26,230 --> 00:06:30,620 Each block has different number of transactions, say five to 10 transactions. 110 00:06:31,130 --> 00:06:33,660 And these blocks get added in a chain. 111 00:06:33,750 --> 00:06:39,410 So you can add a set of transactions in a block and that block can 112 00:06:39,410 --> 00:06:41,020 be added to the previous block. 113 00:06:41,310 --> 00:06:45,160 So suppose there are 10 blocks and you want to add the 11th block will 114 00:06:45,170 --> 00:06:49,370 have say 10 transactions and then it has to be added to the 10th block. 115 00:06:49,720 --> 00:06:54,555 Now the part in which you have to add it, that is the part where you have 116 00:06:54,565 --> 00:06:56,395 to solve a cryptographic problem. 117 00:06:56,975 --> 00:06:59,885 Basically, you have to identify certain number of zeros in 118 00:06:59,915 --> 00:07:01,905 a certain string of numbers. 119 00:07:02,255 --> 00:07:05,235 So you have a 13 or say 20 digit number. 120 00:07:05,555 --> 00:07:08,835 And in that you have to identify the first 10 digits, which are zero 121 00:07:08,835 --> 00:07:11,145 through a cryptographic algorithm. 122 00:07:11,320 --> 00:07:13,660 which Satoshi Nakamoto created. 123 00:07:14,510 --> 00:07:18,380 If you are able to solve that problem you will be able to attach the block, 124 00:07:18,390 --> 00:07:22,953 the 11th block to the 10th block, and you will get some bitcoins in return. 125 00:07:22,953 --> 00:07:24,840 So that's called mining. 126 00:07:24,920 --> 00:07:28,250 So you are basically solving a mathematical problem. 127 00:07:28,930 --> 00:07:33,030 through computation and getting rewarded for your work. 128 00:07:33,280 --> 00:07:37,980 So that's why Bitcoin is basically the blockchain is based on proof of work. 129 00:07:38,320 --> 00:07:40,650 Ethereum is based on proof of stake. 130 00:07:41,180 --> 00:07:42,920 So that's the main concept. 131 00:07:43,280 --> 00:07:48,620 And once the mining is done, the miners, are the people who 132 00:07:48,660 --> 00:07:50,900 actually attach the transactions. 133 00:07:51,290 --> 00:07:53,740 So not everyone can attach a transaction. 134 00:07:53,750 --> 00:07:58,140 You can mine a Bitcoin but mining takes a lot of processing power. 135 00:07:58,520 --> 00:08:03,670 And initially when the Bitcoin was invented the mining was pretty simple, 136 00:08:03,990 --> 00:08:08,655 but as the blockchain increases in size because We are talking about 137 00:08:08,665 --> 00:08:12,565 100 say 10 years of transactions or 20 years of transactions, and 138 00:08:12,565 --> 00:08:13,835 there are millions of transactions. 139 00:08:13,845 --> 00:08:15,665 So you can imagine the size of the blockchain. 140 00:08:16,065 --> 00:08:18,655 So it's, it must be about a million blocks or maybe more. 141 00:08:19,185 --> 00:08:24,295 So if and the challenge and why it is so efficient is that when you want to 142 00:08:24,345 --> 00:08:29,660 add Say a particular transaction because the ledger decides who has what coins at 143 00:08:29,680 --> 00:08:33,890 any given point in time and that ledger decides Okay, you have these many coins. 144 00:08:33,890 --> 00:08:37,100 You have that many coins you have paid this much to this person So now you 145 00:08:37,100 --> 00:08:38,710 have only this much and not that much. 146 00:08:38,810 --> 00:08:46,470 The way they make sure that no person can put a fraud transaction in the blockchain 147 00:08:46,700 --> 00:08:50,220 is suppose you want to add a transaction in the middle of the blockchain. 148 00:08:51,500 --> 00:08:56,980 The problem is you'll have to calculate the cryptographic algorithm 149 00:08:56,990 --> 00:08:58,630 for each of the previous blocks. 150 00:08:59,975 --> 00:09:03,315 So suppose you want to add a block after 1 million blocks. 151 00:09:03,605 --> 00:09:05,105 So that is 1 million and 1. 152 00:09:05,465 --> 00:09:09,665 So in order to put that 1 million and 1 block, you'll have to calculate the 153 00:09:09,715 --> 00:09:14,335 cryptographic, the algorithm or the value for each of the previous blocks, because 154 00:09:14,335 --> 00:09:16,085 you don't know it and you're modifying it. 155 00:09:17,255 --> 00:09:20,725 And any of the blocks after that have to be recalculated as well. 156 00:09:21,245 --> 00:09:25,925 So basically your ledger will be different from someone else's ledger. 157 00:09:26,345 --> 00:09:31,045 And all these ledgers are then tabulated to make sure they're all in sync. 158 00:09:31,295 --> 00:09:34,935 If one is not in sync, then it means some fraudulent activity has occurred. 159 00:09:35,315 --> 00:09:38,975 And that is the basis of this blockchain and that's why the decentralized 160 00:09:39,015 --> 00:09:41,735 nature prevents fraudulent activities. 161 00:09:42,735 --> 00:09:47,295 Rinat: yeah, that's a, it's a really intriguing sort of technology, the way 162 00:09:47,295 --> 00:09:50,295 to think about the whole monetary system. 163 00:09:50,345 --> 00:09:54,945 And this is completely different than all the other traditional ways money was 164 00:09:54,975 --> 00:10:00,975 handled because the traditional money is what we're calling Fiat currency now. 165 00:10:00,995 --> 00:10:05,455 So the way Fiat currency has been for centuries is that, you 166 00:10:05,455 --> 00:10:08,675 never knew exact amount of how much money is in circulation. 167 00:10:08,725 --> 00:10:11,665 , there was an estimate, of course, but there was no guaranteed 168 00:10:11,665 --> 00:10:13,235 that this is exactly it. 169 00:10:13,765 --> 00:10:20,934 Now the this whole technology, blockchain technology, imagine this, that, in 170 00:10:20,935 --> 00:10:22,665 a country, there is only one bank. 171 00:10:22,930 --> 00:10:27,780 And that bank is giving out, cash money to everyone to survive 172 00:10:27,780 --> 00:10:29,700 and, to go about their days. 173 00:10:30,650 --> 00:10:35,010 But what is happening is we don't know the transaction the 174 00:10:35,010 --> 00:10:37,170 bank is making with everyone. 175 00:10:37,600 --> 00:10:41,310 And we also don't know the transaction people are making with each other. 176 00:10:42,160 --> 00:10:45,560 What if all of those transactions were public? 177 00:10:45,910 --> 00:10:49,910 So that's what's, that's what the case is for all the cryptocurrency. 178 00:10:50,480 --> 00:10:56,140 Every user has a wallet and all the transaction ever has taken place 179 00:10:56,140 --> 00:11:00,850 historically from the very start of Bitcoin or any cryptocurrency 180 00:11:01,550 --> 00:11:03,930 until now up to this very second. 181 00:11:04,255 --> 00:11:09,505 Every transaction to every wallet between wallets to exchanges outside 182 00:11:09,505 --> 00:11:15,395 exchange Everything is recorded and is public so you're able to download the 183 00:11:15,395 --> 00:11:21,275 whole history right now Although you have to have a serious amount of hard 184 00:11:21,285 --> 00:11:26,205 drive space for it, but it is available right now for you to see even online 185 00:11:26,225 --> 00:11:29,875 you can just literally type your wallet address and see all the transactions 186 00:11:29,885 --> 00:11:32,385 they've made historically ever. 187 00:11:33,075 --> 00:11:42,560 Now what that makes sure is that Everyone is in agreement with what wallet has 188 00:11:42,660 --> 00:11:49,500 how much currency and what wallet had how much currency on a given date and 189 00:11:49,510 --> 00:11:55,510 time, which makes it impossible to copy Bitcoin or any other cryptocurrency 190 00:11:55,590 --> 00:12:00,480 or any kind of fraudulent activity . Obviously, humans have found other 191 00:12:00,500 --> 00:12:07,730 ways to be fraudulent, but this whole monetary system is fully protected from 192 00:12:08,110 --> 00:12:11,200 fake notes , in real cash situation. 193 00:12:11,200 --> 00:12:16,520 If you have fake notes in circulation, You have other sort of government 194 00:12:16,520 --> 00:12:21,190 policies that public don't always support the, that government interventions. 195 00:12:21,520 --> 00:12:25,160 Bitcoin and all other , cryptocurrencies are protected from all of that 196 00:12:25,160 --> 00:12:26,530 because it's decentralized. 197 00:12:26,540 --> 00:12:27,970 No one has control over it. 198 00:12:28,030 --> 00:12:34,460 And everyone knows all the wallets and how much each wallet has and all the 199 00:12:34,460 --> 00:12:40,070 transactions and they will continue to know until Bitcoin is available and alive. 200 00:12:40,590 --> 00:12:45,590 So that's like the sort of the new way of thinking off of a 201 00:12:45,670 --> 00:12:48,515 monetary system, where this works. 202 00:12:48,515 --> 00:12:52,175 And that's the whole blockchain as Amit you just explained. 203 00:12:52,575 --> 00:12:58,195 So that's a cryptocurrency in not just briefly, but we went into quite 204 00:12:58,195 --> 00:13:02,885 a bit of detail, but it can only help to understand what happens. 205 00:13:02,995 --> 00:13:08,125 So Amit, you were mentioning the miners validate, it needs to be validated by 206 00:13:08,765 --> 00:13:10,925 poeple and you can become a miner today. 207 00:13:11,375 --> 00:13:15,355 Although you need, you would need serious level of computing power now that it is 208 00:13:15,355 --> 00:13:21,675 really popular, but in all honesty and no one's stopping you from becoming a miner 209 00:13:21,695 --> 00:13:26,945 today and validating becoming one of those end points or one of those nodes, which 210 00:13:26,955 --> 00:13:31,715 who says that, yes, I agree that, all of these wallets have these amounts and if 211 00:13:31,715 --> 00:13:35,775 you're in agreement with everyone, that means you're contributing to the network. 212 00:13:36,345 --> 00:13:42,055 Now, obviously miners need some sort of, um, return for their investment. 213 00:13:42,065 --> 00:13:45,765 They're having to spend time, money and effort into it. 214 00:13:46,135 --> 00:13:49,775 And one of the ways they get return is. 215 00:13:50,255 --> 00:13:54,435 As long as they're giving the correct answer to the algorithm 216 00:13:54,435 --> 00:13:57,085 questions they are rewarded I 217 00:13:57,085 --> 00:13:58,635 Amit: so to let's go back again. 218 00:13:59,005 --> 00:14:04,475 So in, in total Satoshi, when he created the Bitcoin, he made sure that you can 219 00:14:04,475 --> 00:14:06,965 only mine, , 21 million bitcoins ever. 220 00:14:07,615 --> 00:14:12,935 So he put a limit and that limit meant that you'll have only finite currency. 221 00:14:13,495 --> 00:14:16,205 Now, the beauty of a digital currency is that it can be divided 222 00:14:16,215 --> 00:14:17,695 into decimal points as well. 223 00:14:18,145 --> 00:14:23,725 So when you say one pound, one pound can be divided into 100 pence or one penny. 224 00:14:23,900 --> 00:14:26,750 One penny is the smallest unit of currency in the British pound. 225 00:14:27,070 --> 00:14:30,610 But what if you could have 0. 226 00:14:30,610 --> 00:14:34,750 00001 to the eighth place of decimal pence and that is the 227 00:14:34,750 --> 00:14:35,950 beauty of a digital currency. 228 00:14:36,190 --> 00:14:38,170 So you can go up to the eighth place of decimal. 229 00:14:38,230 --> 00:14:41,000 So you can actually own 0. 230 00:14:41,010 --> 00:14:42,200 001 Bitcoin. 231 00:14:42,735 --> 00:14:46,345 And that has a specific value in terms of dollar or pounds. 232 00:14:46,875 --> 00:14:51,655 So firstly, you have total number of coins , that can be mined is finite. 233 00:14:52,035 --> 00:14:55,185 Then, because it's a digital currency, it can be broken down 234 00:14:55,185 --> 00:14:57,305 into up to eighth place of decimal. 235 00:14:57,745 --> 00:15:02,905 And now what the network does is that the network increases or 236 00:15:02,905 --> 00:15:06,425 decreases the difficulty of the challenge that needs to be solved. 237 00:15:06,845 --> 00:15:11,465 So the network has to generate a Bitcoin every 10 minutes. 238 00:15:11,970 --> 00:15:13,250 That's the whole thing. 239 00:15:13,480 --> 00:15:15,810 So it generates bitcoins every 10 minutes. 240 00:15:16,080 --> 00:15:18,450 So every 10 minute you add a block, you get some bitcoins. 241 00:15:19,030 --> 00:15:23,810 And based on that 10 minute analysis the bitcoin halving is now every four years. 242 00:15:23,850 --> 00:15:25,010 Now, why every four years? 243 00:15:25,400 --> 00:15:31,960 So Satoshi said that after, or he designed it in the in his white paper that the 244 00:15:31,990 --> 00:15:37,890 amount of bitcoins that you get for adding every block reduces by half. 245 00:15:38,200 --> 00:15:42,340 So suppose you were getting say 20 bitcoins for every block you're adding. 246 00:15:42,700 --> 00:15:46,730 Now you will get only 10 bitcoins for every block you're adding. 247 00:15:47,060 --> 00:15:52,690 So the miner now has to figure out how do I remain profitable? 248 00:15:53,115 --> 00:15:56,135 Because say when you were getting 20 bitcoins, the value 249 00:15:56,135 --> 00:15:59,365 of the bitcoin was say 1, 000. 250 00:15:59,735 --> 00:16:03,065 But now you're getting 10 bitcoins, the value of bitcoin might have shot up. 251 00:16:03,345 --> 00:16:04,245 So you're fine. 252 00:16:04,255 --> 00:16:06,165 You're covered because the value has gone up. 253 00:16:06,445 --> 00:16:10,415 So you can bear your cost or you add transaction costs. 254 00:16:10,625 --> 00:16:13,775 So every time a block has to be added, there is a fee attached 255 00:16:14,885 --> 00:16:16,425 and you increase the fees. 256 00:16:17,135 --> 00:16:20,275 But normally the Bitcoin price appreciates during the halving event. 257 00:16:20,595 --> 00:16:22,395 So and then the network adjusts. 258 00:16:22,695 --> 00:16:29,265 And so suppose the, so the network behaves in a way that suppose there are a lot 259 00:16:29,265 --> 00:16:35,315 of miners, so the difficulty increases to keep the 10 per minute number stable. 260 00:16:35,735 --> 00:16:39,605 Now, suppose, there are not enough miners, the difficulty drops so that 261 00:16:39,625 --> 00:16:41,825 it can still generate every 10 minutes. 262 00:16:42,555 --> 00:16:47,895 And this ensures that there is a constant flow of bitcoins up to a certain number 263 00:16:47,895 --> 00:16:49,635 of years after which it is halved. 264 00:16:50,035 --> 00:16:52,045 And this halving occurs every four years. 265 00:16:52,055 --> 00:16:53,265 So this is today's trailer. 266 00:16:53,365 --> 00:16:54,515 We are in 2024. 267 00:16:54,525 --> 00:16:56,355 The last halving was in 2020. 268 00:16:56,385 --> 00:17:00,935 And then the one before 2016 and the one before was 2012. 269 00:17:01,375 --> 00:17:05,575 And if you have been following Bitcoin, I got onto Bitcoin 270 00:17:05,585 --> 00:17:07,525 somewhere around 2016, 2017. 271 00:17:07,525 --> 00:17:09,395 And that's when the price shot up. 272 00:17:10,215 --> 00:17:10,795 Quite a lot. 273 00:17:10,795 --> 00:17:13,965 So 2016, 17, 18, the price went very high. 274 00:17:14,475 --> 00:17:17,355 Then it came down and then it got stable. 275 00:17:17,695 --> 00:17:24,355 2020, it again went a bit high, came down, went stable, and now it has again come up. 276 00:17:25,115 --> 00:17:28,835 So people are anticipating that because of this, in the network, 277 00:17:29,005 --> 00:17:30,575 Now you will generate less bitcoins. 278 00:17:30,585 --> 00:17:33,865 So whatever bitcoins are already there in the network becomes more precious. 279 00:17:34,275 --> 00:17:39,035 And that's what they are thinking that, okay, maybe it should be of more value. 280 00:17:39,325 --> 00:17:43,355 Now, no one knows what happens once the 21st million bitcoin is generated. 281 00:17:43,735 --> 00:17:47,245 Everything drop will people just cash out and then no one is 282 00:17:47,245 --> 00:17:48,445 there to maintain the network. 283 00:17:48,625 --> 00:17:53,365 What happens after the 21st million Bitcoin generation? 284 00:17:53,375 --> 00:17:57,705 No one knows because we have never been in a scenario where this event can occur. 285 00:17:58,255 --> 00:17:58,635 But. 286 00:17:58,945 --> 00:18:03,715 We know that it won't be mined for I don't know the exact number of 287 00:18:03,715 --> 00:18:07,545 years, but it won't be mined for the, for many foreseeable years. 288 00:18:08,035 --> 00:18:11,035 So this event Bitcoin halving is important. 289 00:18:11,545 --> 00:18:15,140 Rinat: Yeah, so it will be mined, but right now they get 290 00:18:15,190 --> 00:18:19,345 rewarded with six bitcoins and it will become three, because it 291 00:18:19,425 --> 00:18:20,705 Amit: Whatever is the number. 292 00:18:20,705 --> 00:18:20,885 Yeah. 293 00:18:20,885 --> 00:18:21,865 It'll half. 294 00:18:21,945 --> 00:18:22,135 Yes. 295 00:18:22,720 --> 00:18:25,890 Rinat: Yeah, I don't know the number off the top of my head either. 296 00:18:25,890 --> 00:18:30,880 But yeah, so the number of Bitcoins generated during after that 297 00:18:30,880 --> 00:18:33,580 duration of time will be halved. 298 00:18:33,630 --> 00:18:39,170 If it was six, if it is six now, after the Bitcoin halving event, it will be three. 299 00:18:39,630 --> 00:18:43,440 And then obviously, the successful validators are 300 00:18:43,440 --> 00:18:45,350 rewarded with that three Bitcoins. 301 00:18:45,940 --> 00:18:49,710 So they can maintain profitability of their investment and 302 00:18:49,710 --> 00:18:50,750 everything that they're doing. 303 00:18:51,300 --> 00:18:56,580 Now, after the 21 million Bitcoin is already in circulation and 304 00:18:56,580 --> 00:19:01,280 everything is created, then, as you said, we don't know what to expect. 305 00:19:01,280 --> 00:19:03,150 What will be the price? 306 00:19:03,200 --> 00:19:07,180 Whether everyone's just going to leave it or will correct itself 307 00:19:07,240 --> 00:19:10,390 Amit: Someone will still have to keep adding the transactions and now there is 308 00:19:10,390 --> 00:19:12,830 no more reward for generating the Bitcoin. 309 00:19:13,140 --> 00:19:14,940 So we don't know how the network will behave. 310 00:19:15,370 --> 00:19:17,300 Maybe we can cover it in a new podcast. 311 00:19:19,410 --> 00:19:23,760 Rinat: Well, there won't be this massive reward of three bitcoins, which is really 312 00:19:23,760 --> 00:19:28,850 pricey at the moment, but there will still be incentive to continue mining. 313 00:19:28,870 --> 00:19:30,420 It's just going to be a lot less. 314 00:19:31,680 --> 00:19:35,210 Right now the incentive is that if you continue mining and if you 315 00:19:35,230 --> 00:19:38,830 keep validating, , you could get three bit coins or you're going to 316 00:19:38,860 --> 00:19:44,070 get a a small smidgen of division of that three bit coins, which is 317 00:19:44,150 --> 00:19:50,815 a significant amount for you to be incentivized and continue mining. 318 00:19:51,205 --> 00:19:56,095 But after 21 million Bitcoin is , in circulation, then there won't be any new 319 00:19:56,405 --> 00:20:01,045 Bitcoins that will be generated for you, even if you mine, but there is transaction 320 00:20:01,045 --> 00:20:03,545 fees of each transaction that is made. 321 00:20:03,555 --> 00:20:07,115 So all of the transactions that are validated by miners, 322 00:20:07,495 --> 00:20:11,365 they're going to distribute the transaction fee among themselves. 323 00:20:11,805 --> 00:20:17,125 Which may not be as a attractive, lucrative as it is now, but 324 00:20:17,125 --> 00:20:19,135 it will still generate money. 325 00:20:19,155 --> 00:20:25,255 And as a result of not being lucrative enough, a lot of miners will stop their 326 00:20:25,255 --> 00:20:27,345 business stop putting effort into it. 327 00:20:27,675 --> 00:20:30,245 As a result, what will happen is there is going to be less 328 00:20:30,255 --> 00:20:32,945 miners in the in, in the world. 329 00:20:33,255 --> 00:20:37,805 And that would make it a lot less difficult to mine. 330 00:20:37,905 --> 00:20:39,505 So it would be a lot easier to mine. 331 00:20:39,685 --> 00:20:39,935 Amit: Yeah. 332 00:20:39,935 --> 00:20:42,095 But the mining is to get Bitcoins. 333 00:20:42,105 --> 00:20:43,725 Now it won't be called mining. 334 00:20:43,725 --> 00:20:47,005 It will be called something else because now you're no longer mining the Bitcoins. 335 00:20:47,315 --> 00:20:48,755 You're just adding the transactions. 336 00:20:49,120 --> 00:20:49,820 Rinat: Ah, yeah. 337 00:20:50,360 --> 00:20:51,650 validating the transaction. 338 00:20:51,650 --> 00:20:54,910 People who validates the transaction and will continue to validate the 339 00:20:54,910 --> 00:20:56,880 transaction, they will get reward. 340 00:20:56,950 --> 00:21:02,440 They will get the transaction fee as their return on investment of their effort. 341 00:21:02,840 --> 00:21:04,910 It's just not going to be as lucrative 342 00:21:04,910 --> 00:21:07,130 . Amit: Another thing we have to think about is like what will 343 00:21:07,130 --> 00:21:09,300 happen to the computational problem. 344 00:21:09,550 --> 00:21:14,300 So in order to attach a block, the computational power sometimes increases 345 00:21:14,310 --> 00:21:17,330 or decreases depending upon how many miners are there in the network. 346 00:21:17,650 --> 00:21:21,670 If the number of miners reduces, the computational power becomes 347 00:21:21,710 --> 00:21:26,670 easier so that you , still validate about one block every 10 minutes. 348 00:21:27,090 --> 00:21:31,930 Now because there are less miners, the problem becomes easy and the computational 349 00:21:31,930 --> 00:21:33,850 power over a period of time increases. 350 00:21:34,290 --> 00:21:36,990 So now you have a three gigahertz processor, maybe in 10 years time 351 00:21:36,990 --> 00:21:41,100 you'll have a five gigahertz processor and maybe GPUs with 10, 000 cores. 352 00:21:41,390 --> 00:21:45,560 So you'll be able to calculate problems much faster, figure out the solutions 353 00:21:45,560 --> 00:21:51,295 and be able to calculate or add a block to say, 10 million or 1 billion 354 00:21:51,305 --> 00:21:55,775 transactions and you'll be able to calculate all the 1 billion parameters 355 00:21:55,795 --> 00:21:57,675 or they might be a quantum supercomputer. 356 00:21:58,585 --> 00:22:04,845 The whole thing is that now fraudulent activities might become simpler if there 357 00:22:04,845 --> 00:22:09,175 are less miners and the cryptographic problems are becoming less hard. 358 00:22:10,065 --> 00:22:15,305 The pace of computer development or the chip speeds are increasing and 359 00:22:15,305 --> 00:22:21,405 it increases exponentially then we might see fraudulent transactions. 360 00:22:23,040 --> 00:22:25,830 Rinat: I have to completely disagree you on that 361 00:22:25,950 --> 00:22:26,490 Amit: in my head. 362 00:22:26,490 --> 00:22:27,290 I'm just thinking out 363 00:22:27,345 --> 00:22:30,625 Rinat: basically, the way blockchain and the decentralized 364 00:22:30,645 --> 00:22:35,835 network is protected, you can't, be fraudulent on that level ever. 365 00:22:35,905 --> 00:22:38,895 No matter if you're the only one with a supercomputer with 366 00:22:39,030 --> 00:22:41,380 Amit: because everyone else in the network also has to agree. 367 00:22:41,660 --> 00:22:42,160 Fair enough. 368 00:22:43,105 --> 00:22:46,895 Rinat: Yes, and there is, there are everyone are in different 369 00:22:46,895 --> 00:22:48,995 countries and of different beliefs. 370 00:22:49,045 --> 00:22:50,495 Some are probably, 371 00:22:50,505 --> 00:22:51,045 Amit: More ethical. 372 00:22:51,415 --> 00:22:54,745 Rinat: Everyone together is validating the network. 373 00:22:54,785 --> 00:22:59,125 As it's just impossible for one person or an organization, no 374 00:22:59,125 --> 00:23:04,055 matter how powerful their computing power is to break the, this system. 375 00:23:04,405 --> 00:23:08,505 So that's the, basically the main strength of this decentralized network. 376 00:23:08,525 --> 00:23:14,195 But again, yeah, no one knows how popular it will remain, but my anticipation 377 00:23:14,195 --> 00:23:18,525 is because it's going to be the hype over it is going to be finished, then 378 00:23:18,525 --> 00:23:22,600 there's going to be a real possibility of it being used as a currency. 379 00:23:22,600 --> 00:23:27,410 Right now, it's just a sort of a racehorse whether, people are investing to make 380 00:23:27,410 --> 00:23:35,020 money because the price will increase and this is not how you buy pounds or dollars. 381 00:23:35,020 --> 00:23:37,110 You could potentially compare it to gold. 382 00:23:37,150 --> 00:23:40,840 But yeah, if it's a cryptocurrency, if it's a currency for future that you 383 00:23:40,840 --> 00:23:45,840 want to use to buy your daily grocery shopping, you can't do that now. 384 00:23:45,840 --> 00:23:51,520 It's just impractical for the businesses to accept it and for you to pay with 385 00:23:51,520 --> 00:23:57,360 it either is completely impractical, but it might become practical when 386 00:23:57,530 --> 00:23:59,580 the whole market corrects itself. 387 00:23:59,610 --> 00:24:04,820 There is not much of a reward of three bitcoins every hour or whatever. 388 00:24:05,120 --> 00:24:10,670 And then, the validators are getting transaction fees as their sort of return 389 00:24:10,670 --> 00:24:16,220 on investment and people just use it on a daily basis to pay for stuff. 390 00:24:16,700 --> 00:24:18,160 So that could happen. 391 00:24:18,200 --> 00:24:21,960 That's one possibility, or it could just be abandoned by everyone. 392 00:24:21,970 --> 00:24:22,990 That also happen. 393 00:24:22,990 --> 00:24:27,060 We've talked about Bitcoin and cryptocurrency and the technology in 394 00:24:27,150 --> 00:24:29,550 multiple episodes actually in the past. 395 00:24:29,960 --> 00:24:35,590 Obviously overall, now we're a little bit more mature in terms of knowledge. 396 00:24:35,640 --> 00:24:40,010 We know how it is , as you mentioned from 2016, 17, I've came 397 00:24:40,010 --> 00:24:42,130 to know about Bitcoin from 2018. 398 00:24:42,885 --> 00:24:49,015 But however, the price increased since then, I've unfortunately not become a 399 00:24:49,015 --> 00:24:53,765 millionaire because obviously I bought a very small amount, a hundred pounds 400 00:24:53,795 --> 00:24:59,165 worth of Bitcoin at that time as early adopter as just, to know, but that was it. 401 00:24:59,215 --> 00:25:03,445 And , while I did make a decent profit more than if I had 402 00:25:03,445 --> 00:25:05,845 invested in S and P 500, but. 403 00:25:06,545 --> 00:25:09,095 It's still not life changing at all. 404 00:25:09,425 --> 00:25:15,675 What it is because of being with it and growing the knowledge all throughout, as 405 00:25:15,695 --> 00:25:17,545 well as having the time to think about it. 406 00:25:17,925 --> 00:25:22,055 My opinion on Bitcoin, which I was a, like a blind fan before 407 00:25:22,085 --> 00:25:26,525 now it's a little bit more matured outlook , on this whole thing. 408 00:25:26,885 --> 00:25:31,295 There is obviously two sides to the coin and we should know about both sides. 409 00:25:31,855 --> 00:25:36,225 The main argument of buying Bitcoin are two. 410 00:25:36,285 --> 00:25:39,215 One is, Oh, it's going to be the currency of the future. 411 00:25:39,215 --> 00:25:42,845 It's going to replace the traditional currency, . So you can pay for 412 00:25:42,845 --> 00:25:44,515 stuff and live your life with it. 413 00:25:45,875 --> 00:25:50,705 And the other sort of convincing argument is, Oh, this is going to the moon. 414 00:25:50,725 --> 00:25:53,575 And if you invest now, you're going to make a lot of money. 415 00:25:53,625 --> 00:25:58,750 Even though the prices shot up now, It could go even higher, double 416 00:25:58,750 --> 00:26:03,100 or triple , in value , in this year, now, these two things, these 417 00:26:03,170 --> 00:26:05,440 two reasons are self contradictory. 418 00:26:05,630 --> 00:26:12,360 It can't be both the currency that can shot up three times its value can't 419 00:26:12,380 --> 00:26:19,350 be a currency that can be used as a payment in Uber, because would you part 420 00:26:19,360 --> 00:26:23,530 yourself with your Bitcoin because it could be three times the value tomorrow. 421 00:26:24,450 --> 00:26:30,060 And the way it's volatile a business wouldn't also take the risk of accepting 422 00:26:30,060 --> 00:26:34,620 it, or even if they accept it, why would they give it away ? These two 423 00:26:34,620 --> 00:26:38,590 sort of arguments are completely self contradictory, and that's 424 00:26:38,590 --> 00:26:40,220 one of the reason to be aware of. 425 00:26:40,270 --> 00:26:42,480 That it can be either one of these. 426 00:26:42,480 --> 00:26:43,410 It can't be both. 427 00:26:43,440 --> 00:26:46,360 So if you are thinking of buying and if you are thinking of 428 00:26:46,410 --> 00:26:49,740 investing a significant chunk of your portfolio, do think about it. 429 00:26:50,640 --> 00:26:52,660 What do you want as an outcome? 430 00:26:52,810 --> 00:26:57,140 Are you buying it so after all of these hype is finished, do 431 00:26:57,140 --> 00:26:59,980 you want to buy a coffee with it? 432 00:27:00,010 --> 00:27:01,010 Pay for Uber with it? 433 00:27:01,010 --> 00:27:02,480 Is that why you're buying it now? 434 00:27:02,490 --> 00:27:04,360 Because the price would be higher. 435 00:27:04,390 --> 00:27:08,460 So you could get more in however many years when it becomes all 436 00:27:08,470 --> 00:27:13,880 normalized, or are you buying it in hopes that the price will go up and 437 00:27:13,880 --> 00:27:15,300 you're going to make a decent profit. 438 00:27:16,140 --> 00:27:20,180 Whichever one you want to go for is fine, but it can't be both. 439 00:27:20,440 --> 00:27:22,420 It can only be either one of them. 440 00:27:22,430 --> 00:27:26,680 And obviously if you're investing for profit and , nothing we're saying is 441 00:27:26,720 --> 00:27:31,450 financial advice we would also say that, the whole of your capital is at risk and 442 00:27:31,450 --> 00:27:34,940 you could lose all of your money, not most of your money, but all of your money 443 00:27:35,350 --> 00:27:39,810 while doing this and if you're investing you're already aware of it anyway. 444 00:27:40,300 --> 00:27:44,940 The other thing I also wanted to talk about is a lot of people compare Bitcoin 445 00:27:44,980 --> 00:27:47,290 is the future replacement of gold. 446 00:27:47,660 --> 00:27:52,200 And one of the reason why this 21 million the limit of Bitcoin 447 00:27:52,550 --> 00:27:54,530 is that it's comparable to gold. 448 00:27:54,580 --> 00:27:57,620 Basically there is a finite amount of gold. 449 00:27:57,620 --> 00:27:58,670 21. 450 00:27:59,240 --> 00:28:00,910 million . And that is the limit. 451 00:28:00,910 --> 00:28:03,100 And that is all there will ever be. 452 00:28:03,580 --> 00:28:07,670 And Bitcoin is also, there will ever be 21 million Bitcoins. 453 00:28:07,710 --> 00:28:09,360 And that is all there will ever be. 454 00:28:09,360 --> 00:28:13,520 And it intentionally chosen this number to correlate with gold. 455 00:28:13,960 --> 00:28:18,360 And because it's a limited resource, the price can only ever increase. 456 00:28:18,760 --> 00:28:22,680 Now, if it's a limited resource, and you also have to think about, it can't 457 00:28:23,080 --> 00:28:31,890 be practically worldwide used as a currency because inflation, as bad as 458 00:28:31,890 --> 00:28:37,430 it is, 1 percent or 2 percent inflation is necessary for growth in society. 459 00:28:37,480 --> 00:28:41,370 Inflation 2 percent is actually healthy for an economic system. 460 00:28:41,400 --> 00:28:49,000 And if Bitcoin circulation overall is limited forever , That part is like 461 00:28:49,020 --> 00:28:54,870 gold can't be increased and, gold is not a worldwide currency for a reason. 462 00:28:54,870 --> 00:29:00,210 Obviously it was at one point, but all of these things that, Governments do 463 00:29:00,240 --> 00:29:04,190 to maintain the 2 percent inflation is actually useful in many ways. 464 00:29:04,250 --> 00:29:10,000 And also this is a recent, couple of decades worth of outlook is that we 465 00:29:10,000 --> 00:29:12,450 don't like when government intervenes. 466 00:29:12,470 --> 00:29:18,870 But actually, a democratic government not always works as we would like. 467 00:29:18,950 --> 00:29:24,870 But, usually they are doing the best they can for the betterment 468 00:29:24,870 --> 00:29:27,070 of the most of the people. 469 00:29:27,200 --> 00:29:30,390 So they're not always intentionally doing bad things. 470 00:29:30,490 --> 00:29:35,110 They may be they're failing, but they are trying their best to keep it to 471 00:29:35,110 --> 00:29:37,950 2%, which is a healthy inflation rate. 472 00:29:38,420 --> 00:29:43,340 So I would say that if it is going to be limited, can't increase, that's also a 473 00:29:43,340 --> 00:29:48,885 negative point for it to ever be used as a daily currency, it could be something 474 00:29:48,885 --> 00:29:54,005 a store of value like you store gold as an investment, which will eventually 475 00:29:54,005 --> 00:29:55,855 always increase in value, et cetera. 476 00:29:56,505 --> 00:30:02,975 You could store it like that but to use it on a daily payment method might not 477 00:30:02,985 --> 00:30:05,595 be feasible in that respect as well. 478 00:30:06,725 --> 00:30:11,305 The other thing is, and this is something Warren Buffett mentioned quite a few 479 00:30:11,305 --> 00:30:17,295 years ago, last time bitcoin was popular and I've bought into that idea that 480 00:30:17,335 --> 00:30:19,255 it doesn't have any intrinsic value. 481 00:30:19,255 --> 00:30:20,535 It's digital currency. 482 00:30:20,955 --> 00:30:25,865 So people who are fans of Bitcoin and the technology would basically counter 483 00:30:25,865 --> 00:30:29,895 argue that nothing has store of value. 484 00:30:29,905 --> 00:30:36,035 A cash money is just a piece of paper until government, a central government 485 00:30:36,065 --> 00:30:42,325 of a country says that, okay, this piece of paper 50 pounds or whatever. 486 00:30:42,325 --> 00:30:43,545 And that's what gives it value. 487 00:30:43,555 --> 00:30:44,895 Otherwise it's just an object. 488 00:30:45,405 --> 00:30:45,865 Now. 489 00:30:46,295 --> 00:30:47,475 That may be true. 490 00:30:47,775 --> 00:30:52,505 But a national organization, a national government and what they 491 00:30:52,505 --> 00:30:59,515 say is a lot more reliable source of information than any, anything, really. 492 00:30:59,565 --> 00:31:04,055 If a whole country, a government is deciding something, Everyone in that 493 00:31:04,055 --> 00:31:09,425 country is already bought into that piece of paper as store of value. 494 00:31:09,825 --> 00:31:10,625 So that's one thing. 495 00:31:10,875 --> 00:31:15,865 The other thing is gold, regardless of giving any piece of any sort of 496 00:31:15,875 --> 00:31:20,625 store of value or not by government or anyone, gold has intrinsic value. 497 00:31:20,705 --> 00:31:23,645 It is a metal which doesn't react very often. 498 00:31:24,025 --> 00:31:30,015 And The reason, thousands and thousands of years ago, gold became popular, gold 499 00:31:30,015 --> 00:31:34,625 and silver became something is because of its, various intrinsic values, which we 500 00:31:34,625 --> 00:31:36,795 probably don't care about very much today. 501 00:31:37,205 --> 00:31:43,215 Like it's shininess, it's non reactive property and its property to make it 502 00:31:43,215 --> 00:31:49,115 into jewelry and a representation of luxury that has been for thousands 503 00:31:49,115 --> 00:31:51,940 of years and Is still today. 504 00:31:52,360 --> 00:31:57,670 So gold has intrinsic value and maybe a cash paper doesn't or it does 505 00:31:57,670 --> 00:31:59,270 only because the government said so. 506 00:31:59,270 --> 00:32:00,590 And you don't want to accept that. 507 00:32:00,590 --> 00:32:01,120 That's fine. 508 00:32:01,470 --> 00:32:06,160 But gold, regardless of governments, regardless of anything for its chemical 509 00:32:06,170 --> 00:32:08,565 properties, has intrinsic value. 510 00:32:09,125 --> 00:32:15,495 So limited amount of this material is going to be in short supply eventually 511 00:32:15,495 --> 00:32:20,905 when all of it is mined and dug up, but Bitcoin is only a has store of value 512 00:32:20,945 --> 00:32:26,205 because everyone said so, which is a good enough argument , and it will continue to 513 00:32:26,205 --> 00:32:28,685 be valuable as long as everyone says so. 514 00:32:28,975 --> 00:32:32,505 And it can continue forever for with this argument. 515 00:32:32,505 --> 00:32:37,645 And I agree and subscribe to it as well, but just apples for apples and oranges 516 00:32:37,655 --> 00:32:43,565 for oranges, gold does have an intrinsic value, which no one can take away from 517 00:32:43,645 --> 00:32:45,385 it because of its chemical properties. 518 00:32:46,125 --> 00:32:51,315 Now, am I saying all of these to move you away from a Bitcoin and cryptocurrency? 519 00:32:51,325 --> 00:32:52,225 Absolutely not. 520 00:32:52,275 --> 00:32:54,295 I am a fan, still a fan. 521 00:32:54,835 --> 00:33:00,485 Bitcoin have own Bitcoin and other cryptocurrencies and will continue to 522 00:33:00,545 --> 00:33:06,165 tell and promote it because it is a really good piece of technology, which 523 00:33:06,165 --> 00:33:08,395 can enable so many things in future. 524 00:33:08,815 --> 00:33:14,855 From art NFT and other various cybersecurity protocols with blockchain 525 00:33:14,885 --> 00:33:18,765 technology, these, all of these things are really good pieces of technology. 526 00:33:19,225 --> 00:33:26,045 So, if you don't know about it already, do be aware, do more research, get to 527 00:33:26,045 --> 00:33:31,055 know about it and by some, obviously based on your affordability buy very 528 00:33:31,055 --> 00:33:36,155 little as Amit you were saying earlier that it can be divided into, 0. 529 00:33:36,155 --> 00:33:40,035 000, eight, seven zeros and one Bitcoin, which is actually 530 00:33:40,035 --> 00:33:41,475 very much affordable, which is, 531 00:33:41,615 --> 00:33:44,405 Amit: You can buy for a hundred you don't have to specify how 532 00:33:44,405 --> 00:33:45,625 many Bitcoins you want to buy. 533 00:33:46,175 --> 00:33:46,785 So yeah. 534 00:33:47,340 --> 00:33:47,630 Rinat: Yeah. 535 00:33:47,960 --> 00:33:51,930 So definitely support it still, and it's really good underlying technology 536 00:33:51,970 --> 00:33:54,860 and worth knowing about, worth owning. 537 00:33:55,210 --> 00:33:59,570 But I don't, we don't want to say when to own, when to buy, when to sell, no 538 00:33:59,570 --> 00:34:03,860 financial advice, but, encourage to know about the technology and be involved. 539 00:34:04,230 --> 00:34:07,030 It's my two cents that I wanted to get out. 540 00:34:07,200 --> 00:34:08,730 Amit: It is interesting. 541 00:34:08,780 --> 00:34:12,440 You raised a valid point about like store of value. 542 00:34:12,820 --> 00:34:17,580 Gold has some value in it and people use it not as a currency, but to store value. 543 00:34:17,600 --> 00:34:22,800 Like a lot of people in India, they give each other gifts of gold and it's 544 00:34:22,980 --> 00:34:26,900 very common in weddings and in When someone, when you have a very important 545 00:34:26,900 --> 00:34:29,120 ceremony, people give gifts of gold. 546 00:34:29,620 --> 00:34:33,900 And Bitcoin is being treated as that, not as a currency itself, because 547 00:34:33,900 --> 00:34:37,640 you can't actually use it to buy anything in the physical world, but 548 00:34:37,640 --> 00:34:39,310 it is being used as a store of value. 549 00:34:39,310 --> 00:34:42,000 And the only reason it has this much value is because it was 550 00:34:42,000 --> 00:34:43,230 the first digital currency. 551 00:34:43,590 --> 00:34:47,530 There are many other currencies that followed and they have their own ledgers, 552 00:34:47,580 --> 00:34:48,950 which are maintained in their own 553 00:34:48,970 --> 00:34:49,560 blockchain. 554 00:34:49,950 --> 00:34:53,990 . One of the things that might happen is how do we trade in 555 00:34:53,990 --> 00:34:55,340 different digital currencies? 556 00:34:55,350 --> 00:34:57,230 How do we trade between Bitcoin and dollar? 557 00:34:57,230 --> 00:34:58,400 How do we trade in that? 558 00:34:58,680 --> 00:35:03,350 So that's another interesting aspect, but it's not scope of this podcast. 559 00:35:03,470 --> 00:35:07,470 But from an investment point of view or for buying point of view, Treat of 560 00:35:07,470 --> 00:35:12,790 it as an investment for now, it won't be used as a currency, at least not 561 00:35:12,810 --> 00:35:16,970 now because it's very volatile and no volatile currencies , will ever be 562 00:35:16,970 --> 00:35:20,190 used for any transaction for goods. 563 00:35:20,540 --> 00:35:24,500 Whenever a currency inflates quite significantly, they try to be a 564 00:35:24,500 --> 00:35:28,420 base it against a dollar value so that you know that the dollar 565 00:35:28,420 --> 00:35:29,850 value is normally very stable. 566 00:35:29,880 --> 00:35:34,385 So most of the countries that have a very high inflation they try to base 567 00:35:34,385 --> 00:35:38,485 it to a dollar value so that they can still do transactions meaningfully. 568 00:35:38,695 --> 00:35:41,545 Otherwise it gets out of hand very quickly. 569 00:35:41,545 --> 00:35:43,745 And a lot of people can get bankrupt. 570 00:35:44,145 --> 00:35:47,135 They can lose all their assets and they can be homeless. 571 00:35:47,275 --> 00:35:51,305 Rinat: People have lost their life savings in the last bull run. 572 00:35:51,365 --> 00:35:53,205 So definitely be cautious. 573 00:35:53,295 --> 00:35:58,365 Don't completely be panicked that, Oh, the price have already shot up. 574 00:35:58,385 --> 00:35:59,025 What did I do? 575 00:35:59,025 --> 00:35:59,795 Did I miss it? 576 00:35:59,835 --> 00:36:00,935 is there any more? 577 00:36:01,465 --> 00:36:07,435 So that remains speculation and we'll leave you guys to do your own research 578 00:36:07,435 --> 00:36:13,045 and speculation, but yeah definitely don't panic invest, do well thought 579 00:36:13,065 --> 00:36:19,395 out decisions on this, is the only advice we can probably give you. 580 00:36:19,475 --> 00:36:24,355 And also when you hear on social media and everywhere, okay, this 581 00:36:24,355 --> 00:36:30,115 person ordered pizza with 10, 000 bitcoins and lost money or someone 582 00:36:30,115 --> 00:36:31,665 became an overnight millionaire. 583 00:36:31,695 --> 00:36:33,125 That's not even 1%. 584 00:36:33,745 --> 00:36:34,165 That's 0. 585 00:36:34,165 --> 00:36:36,025 01 percent or even less. 586 00:36:36,670 --> 00:36:42,710 It is also because it's in short supply and not worldwide 587 00:36:42,750 --> 00:36:44,890 adopted as a, regular currency. 588 00:36:44,900 --> 00:36:48,000 It also is prone to being manipulated. 589 00:36:48,060 --> 00:36:53,510 So someone who owns a lot of Bitcoin could just suddenly go to one exchange 590 00:36:53,510 --> 00:36:58,270 and sell a significant amount and his or her friends are going to be waiting. 591 00:36:58,630 --> 00:37:01,720 Soon as this one person sells a lot of Bitcoin. 592 00:37:01,770 --> 00:37:06,670 The Bitcoin price suddenly drops in one exchange and friends who are waiting 593 00:37:06,670 --> 00:37:11,780 to buy buys, and then it, what happens is regular people loses money in these 594 00:37:11,860 --> 00:37:14,540 while the rich are getting richer. 595 00:37:14,550 --> 00:37:20,930 So definitely be very when you do this, I would still encourage you to be involved. 596 00:37:21,370 --> 00:37:22,670 But very carefully. 597 00:37:24,150 --> 00:37:27,550 Amit: I think That's all we wanted to cover for this podcasts and 598 00:37:27,550 --> 00:37:32,880 thanks Rinat for going into so much depth and covering so many scenarios 599 00:37:32,950 --> 00:37:35,390 for the Bitcoin and the halving. 600 00:37:35,750 --> 00:37:40,280 So hopefully the audience have gained some knowledge with our conversation 601 00:37:40,280 --> 00:37:45,440 today and they would go on to pursue their own journeys into acquiring 602 00:37:45,690 --> 00:37:48,050 Bitcoins or just doing their own research. 603 00:37:49,625 --> 00:37:52,185 Till then have a great weekend. 604 00:37:52,245 --> 00:37:54,425 And we'll see you for the next episode. 605 00:37:54,725 --> 00:37:55,835 Thanks so much for tuning in. 606 00:37:56,835 --> 00:37:57,115 Bye. 607 00:37:57,330 --> 00:37:58,170 Thank you, everyone.