FCA in ‘CrYpTo’ Warning to Under 35’s | Bitcoin Education

Video Transcript:

hello there and welcome to the HashPower Academy my name is Jake Scandan i’m the lead educator here at the academy and this is a place for you to learn anything and everything to do with Bitcoin and its underlying network of technologies and commodities now the topic of today’s video we’re going to delve into uh the the most backwards country on this earth called the United Kingdom a crazy little island on the edge of Europe and the two biggest concerns lo and behold are energy and finance which seem to be these two big topics across everything in society and represent well energy is the input to everything in society and finance is the output shall we say and the two biggest issues I can show you here in this free financial times that I got going through the airport is the financial conduct authority uh which is our financial regulator in the UK they have a warning to to young people about crypto because they uh are too concerned at the amount of people delving into things like Bitcoin and they would rather they’d rather start a five-year strategy to make shares and bonds a natural early investment because uh who wants to who wants to take risk and uh invest in owning a global monetary network based on energy uh and expanding across the planet a planetary energy currency versus hand your money to the British government which have the stupidly large debt burdens um an aged population lack of productivity in all their young people and millionaires are leaving yeah uh I don’t think earning interest on declining collapsing currency is of interest to me thank you very much uh and then the se and then the second uh issue of the day being that lack of investment in energy infrastructure heathro which is the largest airport I think in Europe in terms of how busy it is uh they uh they shut down for a whole day because uh they had a single point failure of depending on one local substation which is essentially the national electrical grid converting it down to the local energy level and the substation essentially uh had a fire and it shut down the airport and they needed to depend on it’s not very net zero but they needed to depend on diesel generators I believe to keep running the critical systems and that well energy and finance it just seems like the two key biggest issues and guess what Bitcoin is a system that interconnects the two and creates a circular economy between energy and finance yeah I’m not happy about the date of the the UK i I don’t see much prosperity here in the things that I want to to build work on and talk about such as Bitcoin and its underlying network and the well the key things that I can offer to anyone that’s a decision maker here in the UK or to anywhere in the world for that matter is what is Bitcoin it’s a currency system a unit of account on a database the blockchain but that blockchain is unique in the fact that it has a cost to produce in energy the only thing that adds more more blocks to the chain is energy through compute power and this chain of commodities and technologies from energy to finance they offer so many other different things and benefits to a country for example the UK has this massive push into net zero net zero being the approach to reduce the carbon output of a nation to zero but everything’s made of carbon hating carbon is hating yourself because we’re everything’s made of carbon it’s absurd it’s plant food and at the same time these sorts of policies cost more because it’s not a financial choice it’s a uh potential scientific theory going decades into the future the other concern there is it’s same with the monetary issue is that scientists that talk about net zero uh they get their funding but if you talk in what science is is is opening up the pallet to sort of push towards the truth um if you say anything of critique about net zero or well the scientists don’t just don’t get as much funding i’d be interested to see the funding rates of scientists based on their perspectives on that thing but the overall gist here is that net zero creates instability on our electrical grids because when the sun’s shining you get power when it’s not you don’t what if everyone’s watching the football at the same time that there’s no power being produced we have to then buy it in extreme prices from other countries um because they don’t want carbon emitting power sources and then that issue of have transferring power has cost and so we need more electrical infrastructure and as mentioned that there’s just lack of investment in the energy side of things but here’s an interesting observation what are Bitcoin miners doing they need to buy energy and sell it to a global network but also they wish to sell energy in the future where they contractually buy it from a producer which locks them into an income stream a buyer that will continually buy over time and then sell and distribute that power to other consumers that may need power at certain times and Bitcoin mining defines a price in which those machines those computers the Bitcoin miners are willing to sell that power at a higher rate if you’re earning 10 cent per kilowatt hour why would you why would you consume power at 12 cent a kilowatt the grid will buy it so it’s uh that concept of uh the value of something is what a person’s willing to to to pay for it and if the grid’s willing to pay a higher price why would the computer consuming to produce bitcoins stay on it’s just a direct conversion of energy into money there’s no business in the middle that they need to use the power for so the unique component of Bitcoin mining is that it’s a energy system and a financial system as essentially a ven diagram and compute being that piece in the middle which is just a computer that is consuming energy to produce Bitcoin and it can sell it and arbitrage the other way and that’s the key thing here is that lack of productivity which is uh probably a very key component of the financial conduct authority worried that uh money there’s economic leakage onto the internet so to speak of young people which are going to be the majority in the future if young people are investing outside the nation the only way to have that money cycle back into the nation is potentially through investing in the energy sector side of things changing to regional power pricing is something that uh I believe his name is Greg Jackson of Octopus Energy it’s an it’s an energy company here that they are uh well they’re advocating that instead of having one national price of energy which is set at the highest cost producer to have regional power pricing which is natural normal efficient the closer you are to an energy producer the cheaper your power the further away from an energy producer in the middle of the city where there’s no power production the more expensive your power it creates direct alignment between where it’s produced to where it’s consumed the closer you live to production the cheaper your power and that’s why Bitcoin miners will find their way closer and closer to production or they will seek to produce their own power and that’s the future of the Bitcoin network if you’re vertically integrated in producing your own electricity deploying your own computers on site and exporting it to the internet that’s not just that’s amazing in of itself but that’s just the that’s the first step the next step is well if a local person wants to buy that power he the miner has a very specific mathematically defined rate in which he will sell the power so electrical grid infrastructure and wiring from that site and expanding that is going to be those next steps of advanced evolution of Bitcoin mining that they are going to want to build out a root system to this network of selling power where it’s needed because if you can sell power to someone at a they demand it at a higher price in which you’re willing to consume it into a network it’s everything’s about comparison with this network it has arbitrage on the financial side of being fixed in supply so it’s going to outperform any fiat currency that is continually issued and circulated and priced against everything that is now impossibly expensive to buy such as property in the UK that young people have the steps the the steps have been massively increased that the the average salary in the UK is well pathetic versus the the cost of a house so why I mean this article literally mentions the the amount of risk associated to Bitcoin and digital assets of course the crypto side of things is where the risk is because it’s just a bunch of digital penny stocks versus Bitcoin which is an ocean of liquidity because it has a cost to produce in energy and so the key observation with this is that Bitcoin is a system expanding and deploying energy infrastructure if you observe the Bitcoin price you can go “Oh it went from from nothing up to 80 $90,000 right that’s just the financial lens of understanding it.” On the underlying network side of things you can go “Well hang on bitcoin wastess the electricity equivalent of an entire country.” No for it to for it to be able to consume the electricity of an entire nation that network had to pretty much contractually buy the electricity of an entire nation build out the infrastructure of electricity consumption for an entire nation wiring transformers and every other component associated to that that Bitcoin is a network of a decentralized state essentially decentralized in the fact that it’s all a coordination system to produce compute to produce Bitcoin and it’s deployed across the planet and it’s still working to today and it uses the energy equivalent of an entire nation um if that’s not worth inviting that sort of technology innovation of energy money into your nation state then those interested in those sorts of advancements are going to leave your country and that’s what we’re going to see in the UK on the financial side it’s millionaires and billionaires and whatever else leaving on the on anyone young with half a brain to do with technology and seeing uh trends macro trends of techn technology AI and societal changes shall we say um they’re just going to leave they’re going to find prosperity in a global wireless borderless world and it’s going to move them away from the UK at this present moment right um I think that’s the end of the video I believe um this is more of a sort of sit and talk sort of video um I hope this was an interesting sort of different approach video um hope you enjoy see you next time bye-bye