Blockchain

Video Transcript:

Video Transcript:

Hello there and welcome to the Hash Power Academy, your place to learn anything to do with Bitcoin. The topic of today’s video starts with a very important message. There is only one native Bitcoin yield and that is producing freshly mined blocks. Everything to do with the discussion of layer 2s which operate on top of the blockchain or even the layer 1 being this most fundamental discussion of how we add blocks to the chain the native issuance and settlement of transactions and creation of that last million bitcoin 1.1 million bitcoin to be mined and also we can include side chains into this so that interoperability that all these different new developments on top of bitcoin’s blockchain is going to have in the future. These are critical and the discussion behind it is of course native Bitcoin yield ways of creating cash flows whether it’s within Bitcoin or fiat cash flows which are converted into Bitcoin in the context of Michael Sailor. So what we’re going to discuss here is yes, Bitcoin mining is the most native intrinsic way of creating Bitcoin yield. But the struggle here is that there are particular chains and marketing communications discussing some way of creating natural Bitcoin yields, which is some form of wrapped, staked, pegged version of cash flows in a quantity of SAT that’s not natively BTC. Why? Well, I’ll take the example of lightning to begin with. We’ll discuss a few other chains as well. Lightning is multi-IG channels, which is you use the layer 1 blockchain to connect Bitcoin in channels with other people. And so the Bitcoin sits in the layer one because it never moves. But the layer 2 is this sort of transactional relationship that you have with another entity in this upper layer. and the lightning network. Think of the way that lightning sort of hits the ground. It’s finding the shortest path to strike the ground by using the least amount of energy. It’s almost like how water flows down a hill. Now, what it’s doing is finding that path of least resistance through the lightning network to allow your funds to move through the network in the cheapest way possible, quickest way possible. And there’s some few failures in there of invoices not working or the payment fully not rooting to who you’re trying to send it to. So the nativity aspect there is that there are yield sources particularly with lightning which is running a lightning node but it’s very nominal amounts because there’s different payments being rooted through your node and maybe you’re collecting a small fee. So that is the closest layer two way of creating yield but it’s so nominal in comparison to other ways of creating bitcoin yield. The next one I will discuss is liquid which is a federation and it’s a side chain and they have their own address format. So there’s no native aspect of yield in this. There is probably products, market, services being built within the liquid ecosystem which you can earn their wrapped version of Bitcoin and peg it back out into Bitcoin. So there’s ways of creating yield or accessing different things that create yield, but it’s not native. It’s not natural. Where should we go to next? Botanics. This is a new form of EVM layer 2, which is right here. And EVM is that translation across from Ethereum and the all different aspects related to complexities of transactions and a virtual machine which there is going to be ways of DAPs and different tokens and all other different things being built in that higher layer which will create yield but again it’s not native for the particular reason that the Bitcoin that you may earn in that layer two is not in the same address format of Bitcoin’s layer one. Not native, not really yield. It’s external yield sources. It’s the biggest question and the biggest failure in the dangers of several years going back into all different projects that tried to create Bitcoin yield, which is they blew up because the true question to ask is what is your yield source? Where should we go to next? Sequentia. This is an interesting one that I’ve just recently learned about. And Sequentia is essentially a side chain. So it has communication with liquid and lightning, but also that communication with layer 1, which they uniquely have, which is they have the same address format as Bitcoin’s layer 1. Now the reason why I was looking at these particular projects is because um well I’m developing my own form of platform which allows people access into Bitcoin mining in a very accessible way. And the biggest struggle that I have is I have freshly mined Bitcoin from Bitcoin mining coming out in the layer one. Bitcoin’s blockchain freshly mined. I have to distribute that to all the different users and owners of the hash rate. And what that means is if I used any form of layer 2 or side chain or anything EVM, I have to wrap, stake, tokenize the Bitcoin into their particular ecosystem to distribute and account all of the different payouts of Bitcoin to those users. Now, I don’t want those potential vulnerabilities in the process. I’d like to distribute out to layer 1 wallets. So the closest one is actually sequential but the the long-term path to putting hash rate on chain in that sort of way is quite a challenge and quite an interesting journey for me to delve into. Um but yeah the overall gist of this particular video is to just explore that idea that yes there is going to be different communications out there from different projects talking about Bitcoin yield because traditional finance is trying to create cash flows of Bitcoin. People loan against their Bitcoin to access cash. It’s not creation of cash flows from some form of external yield source, but even lending Bitcoin to create some small amount of interest as well. There’s people taking all different risks and trying to gain different reward rewards because we have this asset which does have a compound annual growth rate that people quote at say 30% a year, but it’s volatile as well. So everything has their tradeoffs. Yeah, this is a an interesting sort of video to to explore these different ideas because of all the different subject areas of energy, electricity, mining, hash rate, the blockchain and Bitcoin. The blockchain is the particular one that uh if I was to say which one I haven’t studied the most, it would be the nittygritty deep diving into the code side of things and all the different op codes. And yeah, the path for me is to to learn about them as well and be on that educational journey also. And well, what I learn I will pass on to you. Thank you for listening and I will see you in the next video. Goodbye.

Video Transcript:

Hello there and welcome to the Hash Power Academy, your place to learn anything to do with Bitcoin. The topic of today’s video is going to be comparing Bitcoin to memecoins. If you are a returning viewer, you know where I’m going to go with this video. If you are new here, you love your meme coins, you want to learn something new, you want to go into a few interesting topics about what’s going to come for memecoins, I’ll give you that sad reality. It’s done. dead fenito. Why? Well, one person, one person only. Good old Mr. Trump, Mr. Orange Man with his orange coin. And the reason for that is everything to do with Bitcoin. There is aspects of speculation that is the price and supply and demand and what what’s happening in the news used to be quite a thing that created price action when it came to Bitcoin. But everything to do with meme coins is absolute price speculation. The flood of people rushing into something, the pumping of it going up and the game of musical chairs trying to get out. And that was a very interesting quote that I read from a person that’s very famous on the Bitcoin side of things named Samson Mau. He had this very interesting quote and I think you’ll agree. He said that everyone in the crypto industry is trying to sell before everyone else, get out and cash out, and everyone in the Bitcoin industry, they’re trying to buy before everyone else. Can you understand the psych psychological difference between those two? And the key takeaway here is that with the speculation aspects of different meme coins, it’s gambling. It’s playing musical chairs and the peak is already behind us because how much bigger of a memecoin can you get than the president of the free world launching a memecoin it pumping to multi-billion dollar market cap in terms of its valuation on paper on his presidential inauguration. It doesn’t get any bigger than that. And it when it comes to price and speculation. And so I’ll just bring it back down to this one is to the why. Why are you trading meme coins? Do you enjoy it? Is it fun? And the the gambling aspect of that is just going to punish most people because you’ve got to see that these tokens are spun up at the cost of nothing. That’s the entirety of pump.f fun. just spun up labels and rappers and pictures that money of other different assets floods into to raise the price up and someone’s just extracting out the money underneath. That’s it. And the danger there is, yes, you may be the one that sold on top of everyone else and cashed out other people’s money because it’s all a zero- sum game. Now the reason it’s a zero- sum game is because the wealth is inextricably linked to just two particular digital assets like USDT or Salana flooding in to buy it and repric against other people’s dollars and Salana and other things flooding in and taking it. And the difference there in comparison to Bitcoin is that Bitcoin has this exchange rate with electricity. And the outflow of that in thermodynamic terms, yes, gets released as heat from the Bitcoin miners underneath that are producing Bitcoin. But what’s happening is it’s getting repriced against energy as well. So there is this very natural circular economy that Bitcoin has between the digital and physical worlds. The difference there when comparing Bitcoin and its physical cost to produce, building a production floor and creating an asset that’s yes, fixed in supply, but grows in value over time when compared to the growing economy underneath. In comparison to memecoins, which are a flood of money into a picture, a face, a name, a story that was spun up last last night by an insider group handing out the early amount to their friends before flooding in people that don’t know any better. It’s really sort of it can be upsetting because there’s an endless amount of suffering of people burning themselves with bad experiences with digital assets and then they may not necessarily delve any further because they got burnt. And the two other aspects here are as to why don’t people try Bitcoin first? It may seem boring, but there’s an aspect of proof of work that you need to do. Here at the Hash Power Academy, we teach all the different maths and physics fundamentals of Bitcoin. If that’s of interest to you, which to many that might not be, but if it isn’t of interest to you, you can get yourself ahead with intellect, with learning, learning knowledge and advancing yourself in a way that allows you to get ahead of others in the society that is completely in structure of who can get ahead based on intellect and how much you apply yourself in terms of your work. because there’s working hard, there’s working smart, and the combination of the two is the perfect mix. And that’s truly the important aspect here. The that a many people miss out on Bitcoin because they feel, oh, it’s too big, one whole coin, too much. That’s a unit bias. You can buy a tiny fractional amount of Bitcoin and you are preserving the same amount of relative wealth over time. And people holding lots of Bitcoin eventually they will pass away and it will redistribute to those that are not. That’s just being old versus young. Your grandparents typically have a lot more stuff than you do. And the other aspect here is that getting ahead in a world of debt based money. This is the reason why Bitcoin appeared and then this stuff became the the crazy story afterwards that we live in a world where salaries are very much flat over time versus the cost of houses and the cost of living absolutely taking off. It’s a problem with our central banking system flooding the world with units that buy your time and energy. You sign a contract to earn x amount per hour. So your valuable time will pay you this amount per hour, this quantity of dollars or pounds, euros, yen, pesos, whichever it is. And if the government can just print these units, your time and energy is being taken through inflation, tax, interest, you name it. And so this is where the whole Bitcoin journey began. It’s a way of people being able to preserve their wealth in an asset that’s priced against electricity, which is extremely important to society. Now, everything about our world is becoming electrified. Just look at what Elon’s doing. And on the other side of that, we’ve got this I don’t even know what word to apply to it. I just I just believe it’s hype, speculation, short stories, tokens that come from zero go back to zero, and in the journey you redistributed your wealth to someone else that got rich and they seem to spend it and burn through it just as quickly. that doesn’t build a progressive society that helps to nurture society in a direction that’s more prosperous versus Bitcoin that is people going out there in the world and trying to find cheap energy where it’s wasted in excess and they will capture that to secure the network and issue new units which have an alignment to important things in our physical world because This is the other thing about say people of a younger age and I’m actually Gen Z somehow right on the cusp before millennial that um we we’ve grown up in a completely digital way that all of our generations before us didn’t that we are the kids of the internet so to speak and of of the true sort of web two web three stages of the internet I might add and we are so digital that we may have this abstraction and disconnection from the physical world. Not all of us, but a large majority of people of a younger age. We there is just psychological disconnects that some have with the physical world, a sort of pinching of is this real sort of thing because we spend so much time online. It’s a completely different universe. uh that the the way that for example I spent many years playing Minecraft as a good example and yeah meme coins being the very much difference between finding rare gems and not but you know what I think I’ll leave it there. Thank you for listening to this video. If it helps you open up a new way of going you know what I think I’ll give Bitcoin a go. I think I’ll make the effort to learn more about it and maybe not try and get ahead with hype and speculation, but get ahead with academic intellect and proof of work of learning. Going on that journey to really understand it because there’s a lot of education out there and it’s all typically free. Thank you for listening. I hope you enjoyed and I will potentially see you in the next video. to buy.