Episode Highlights:

  • 00:13 – What Advice You Will Receive In This Video
  • 00:54 – Where Is Cryptocurrency Today
  • 01:30 – The Future Of Cryptocurrency
  • 02:04 – How Is Cryptocurrency Used
  • 04:17 – How Does Cryptocurrency Affect Third Part Institutions
  • 05:44 – Do You Pay Taxes On Bitcoin Gains
  • 06:17 – Does The Irs Track Bitcoin Transactions And Gains
  • 07:18 – Why Is Government Loosing Their Ability To Tax The Public By Using Cryptocurrency
  • 08:35 – Cryptocurrency And The Barter System
  • 10:40 – The Future Of Cryptocurrency
  • 11:38 What Is Bit Torrent
  • 13:19 Difference Between Cryptocurrency And But Torrent
  • 13:59 – How The Blockchain Will Change The Way We Do Business

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Hey what’s up guys, Dan from cryptocamacho.com. Hopefully you guys can hear this a video alright. I don’t have a mic on me right now. I’m just talking straight into my iPhone. So I hope it works out well.

00:13 – What Advice You Will Receive In This Video

What I wanted to talk about today was crypto currency obviously. But I’m thinking about crypto currency and I’m thinking Crypto currency is basically intangible money. They’re coins, they tell us they’re coins, they tell us they’re tokens but they’re intangible. We cannot touch them, we cannot taste them, we cannot smell them, we cannot hold them we cannot put them in a suitcase like we can with dollar bills or with gold or with any other physical asset. We can’t do anything like that would with crypto currency because they are literally just numbers in the ether on the Internet.

00:54 – Where Is Cryptocurrency Today

And so it made me think about crypto currency, where we’re at today, where crypto currency might go and it started getting me to think about all the all ICOs, all the different types of crypto currency popping up that are using blockchain. It got me thinking about iota which uses a technology called tangle, which is supposedly better than block chain. And so all of these different types of crypto currency apps are starting to pop up, all of these different types of crypto currency technology is popping up and we’re really just getting started. We’re at the very very beginning of the cryptocurrency revolution and there’s a lot more to come.

01:30 – The Future Of Cryptocurrency

But now I’m trying to envision ten years from now what is this going to look like; five years from now, ten years from now, fifteen years from now, twenty – what is actually going to look like? And when you stop and think about how many ICOs, how many coins, how many technologies are being built on blockchain every single day and that’s only accelerating now. In five years we’re going to have thousands upon thousands of different coins that utilize blockchain, tangle and potentially other types of crypto currency technology.

02:04 – How Is Cryptocurrency Used

And what is that actually going to do? What does that mean for us? I can imagine a world where somebody has a device whether a phone, whether smart glasses or whether the device is kind of embedded in them, whatever the device may be, whatever type of you know artificial intelligence or virtual reality people might be using there will be an element of crypto currency baked into all of that. And I can see that people will start using different types of crypto currency as money in different ways for them. and what that actually means for them is we don’t necessarily need any type of bank, any type of financial institution, any type of third party to let us transact with money for anything.

We really don’t need that. I mean think of insurance companies, think of banks think of mortgage companies, think of financial advisors, financial lenders, think of all title companies for housing, fire insurance for house, think of all of these different industries that right now we need to have a trusted third party to verify and validate that the transactions made between two or more parties are valid. we need a third party like an insurance company, a title company, a bank , whatever we need them to validate and verify that the transactions happening are actually legitimate. and that there’s nothing tampering with them, that they’re not fake, that they’re not hacked or that they’re not artificial, that when you make a transaction or contract with somebody it is what you say it is and what you guys agree on. We have these institutions today that enable us to do that. Crypto currency changes this entire paradigm, it changes the entire structure of the system. It changes everything. I mean I can envision a day when you will not need a title company, you will not need a bank to give you a loan, you will not need insurance to cover XY or Z because you’ll be able to do that individually with people, with parties with companies, with whoever you want using crypto currency.

04:17 – How Does Cryptocurrency Affect Third Part Institutions

And the trust factor, the validation or the confirmation that the transaction is valid, legitimate, not hacked, not artificial, not a hoax all happen on the block chain or tangle or whatever the technology is at the time. That’s how it will happen.

And what that means is actually a pretty profound thing, it means that we are not going to be reliant on these third party institutions; on governments, on banks, on mortgage companies, on insurance companies on a number of different industries that really make their money by exploiting the fact that we need to trust them and rely on them to validate these types of transactions. They make their money by doing that. They make their money by taking a percentage or taking a cut or charging fees or whatever it may be; that’s how they make their money. Those people aren’t going to be needed. When you buy a house you typically go through a mortgage company, you go through a lender, you maybe have to get a title for your house… all of that stuff happens because you need to preserve the integrity of the contract that was made when you bought the house. So that over generations, over multiple years you can actually track back to who actually owned the asset. Who owned it, where did it originate, where did it come from, who owns it now? And when ownership is transferred to somebody else, who that ownership goes to. This can all be done on the blockchain. This could all be done with crypto currency technology that we have today. And this is only going to get better and better and better.

05:44 – Do You Pay Taxes On Bitcoin Gains

And so when people start asking about taxes; and do I have to pay taxes on my on my Bitcoin gains that I’ve made. And the answer today is yes. I mean if you live within the United States of America and probably most other countries you do have to pay capital gains taxes on your Bitcoin gains or on any of your crypto currency gains – you do have to pay tax. And right now that’s about fifty percent. So if you’ve made a million dollars in bitcoin, you have to pay five hundred thousand dollars of that profit to the government. That’s not a small amount of money.

06:17 – Does The Irs Track Bitcoin Transactions And Gains

And so what I’m saying to you is that eventually this will not be the case. Eventually you know there will be no way for governments or third parties to really know the transactions that you’ve made. They will not know the gains that you’ve made. They aren’t equipped to do that right. And for them to be able to do that, they would need a serious overhaul on their technology stack today within the IRS, within the governments, right. There is no way possible for them to track all bitcoin transactions and gains today. It is just not possible. There’s just too much of it. And the I.R.S. and the other institutions just are not prepared to do that. They’re not tech savvy enough to do that, right. They’re trying to keep up and just understand what Bitcoin is and what blockchain is and they’re just trying to understand it let alone try to enforce all of this. What they are going to do is they’re going to make an example out of a few people that they’re following closely. Like people that are promoting You Tube videos like myself or people that are making big gains and publicly announcing them. They’re going to have ways to find that stuff out and they’re going to make an example of a few people so that other people don’t follow suit.

07:18 – Why Is Government Loosing Their Ability To Tax The Public By Using Cryptocurrency

But in reality the I.R.S. and the governments are losing control. They’re slowly slowly but surely losing control of the ability to tax the public by using crypto currency. And why is that? Because you don’t need any other third party system to validate any transactions or anything that you do with crypto currency. It’s done between the two users that make the transaction. so if I send you a bitcoin from my computer to your computer, my wallet to your wallet, I send you a bit coin, we assess the value right now based on fiat currency. So right now bitcoin is worth x amount of dollars because it’s tied to the fiat currency, the U.S. dollar. Once that goes away and I don’t know when that’s going to be but eventually that will go away and when that does go away it’s not going to be pegged to that. People are going to start pricing things in bitcoin and cryptocurrency. They’re going to start pricing things out that way. You’re not going to have to convert back to a fiat currency. It just is going to be what it is. Like I give you 0.1 Bitcoin for a car or whatever the case may be right. And you completely take out the need to use fiat currency, to use dollars, to transact in dollars, to do anything in dollars. You just completely remove that need.

08:35 – Cryptocurrency And The Barter System

And so a contract now can be made directly between two people. Let me give you an example like if I a buy a house today, I’m making a contract between another party, another person, another family, whatever; another organization. I’m making a contract and that’s preserved over time through these institutions. Through title companies, through mortgage companies, through government registries and things like that. All of this stuff is tracked and preserved through those types of organizations, those types of entities. That is going to change because that can all be preserved within the blockchain. That could all be preserved on the blockchain or any other type of similar technology; tangle or whatever. And in the future, you are not going to need these third party organizations to do that tracking and to maintain that ledger for you over time. It’s going to all be done within the blockchain. What that means is that we don’t need those third party institutions, we don’t need them. Think about it like this; think about it in terms of bartering. I was going to barter and I had shells and you had shells and we bartered shells; and we wanted bread for shells. That was kind of an economic system or monetary system we use. The currency we use was shells. If we want bread, we trade you x amount of shells for that bread.

We don’t need anybody else to tax that, to validate that. We don’t need that. the validation only comes in when you say ‘ok, I’m going to trade you my shells for your house or your hut or your whatever it is…’, then we need some way to record that that house or hut is yours, that you now own that because you gave x amount of shells. You agreed with that other person or party that you would give them x amount of shells and they would give you their hut or their house. You agree with them and the way we preserve that over time is through these institutions. Those institutions are going to be irrelevant once all that information is tracked, stored and preserved on the block chain. We don’t need those other institutions.

10:40 – The Future Of Cryptocurrency

So I can imagine a world where we have thousands upon thousands of cryptocurrencies and they’re all used for different things. They may be used for mortgage, they may be used for whatever, lending, they may be used for whatever you want them to be used for. And as long as there’s enough people in the network, in the ecosystem and enough people trust the value of a particular cryptocurrency it can be used for all kinds of things and you don’t need any third parties in between. You don’t need anybody to validate anything for you because it’s all encoded in the blockchain and it’s all preserve there. that essentially or affectively makes all of these third party institutions, governments, title companies, insurance companies, registries; all of these things, all these institutions that charge money and fees and exploit you because you’re using their services are going to no longer be needed. And that is a staggering staggering thought.

11:38 What Is Bit Torrent

This isn’t going to happen overnight. This isn’t going to happen tomorrow. This isn’t going to happen next week. It probably won’t happen even within a few years but within the next decade, if blockchain cryptocurrency keeps going the way it’s going and I don’t think that it’s going to stop any time, there’s nothing anybody is going to be able to do about this. It is just going to be the way society transforms. And it’s because this technology. Think about it as like a torrent. If you’ve ever used the torrent and that’s what you basically use to browse the dark web, if you’ve ever used the torrent or visited any .onion sites, if you’re familiar with that, you notice that Bit Torrent has been around for twenty years at least. Nobody’s been able to shut down Bit Torrent. Lot of illegal, illicit activity happens on the Bit Torrent network. Why hasn’t it shut down? Why haven’t the governments conspired to shut it down? Why hasn’t anybody shut it down? Because it’s too powerful. The protocol is too powerful. It’s a decentralized way of exchanging information in a peer to peer network. Think of Napster. It’s very similar. Napster, you were able to transact and trade music or songs back and forth with one another. The problem with Napster is that it was not decentralized. It was centralized around one single company and that’s how they got in trouble. The government said ‘oh, you can’t do that. That’s illegal. We’re going to seize your assets, we’re going to shut you down and they did. And that’s because it wasn’t decentralized. Now you have these decentralized exchanges like Bit Torrent which you can trade music, books, whatever you want, software and nobody can shut it down. Nobody can do a thing about it because it’s just too powerful. There’s too many computers using it. There’s too many individual people using it and governments just cannot shut it down because of that.

13:19 Difference Between Cryptocurrency And But Torrent

The same thing is going to happen with cryptocurrency but the implications are much much bigger than Bit Torrent. Bit Torrent, you’re trading information. Crypto currency, blockchain you’re trading money. You’re creating contracts with people through technology using money. And you could essentially program whatever you want into those contracts; whatever terms you want and those will be preserved over time. And you can actually execute different commands or different things at different points in time based on whatever’s encoded in the blockchain, whatever you want to happen; in twenty years, transfer this title to this person and charges fees to this person and that could all be encoded in a blockchain.

13:59 – How The Blockchain Will Change The Way We Do Business

Anyway my point of this video is to get you to envision a future, a world where there are thousands upon thousands of cryptocurrencies and everybody uses whatever cryptocurrency they choose. They’re not pinned down by a single cryptocurrency, they’re not pinned down by using a certain type of fiat money, like a dollar. They can use whatever currency, whatever system they want to to achieve whatever goals are in front of them and whatever possibilities they have using that cryptocurrency. And nobody will be able to interfere with that at all because it’s peer to peer. It’s strictly peer to peer. That’s the thing I find fascinating, that’s why I think blockchain is going to change society. I think that we have a ways to go before we get there. But I think you could already see some of that stuff happening now. And I’m curious of your thoughts, if you envision a future where we live without these third party institutions and just use cryptocurrencies to make transactions between people.

It’s going to be a fascinating world. It’s going to be a very very interesting ride along the way. I hope you make some money along the way. I’m hoping I make more money along the way. I’m Dan from cryptocamacho.com, I hope you enjoyed this video. Leave your comments and let me know if you want more videos like this or more technical videos about specific things on how to use bitcoin, how to trade blah blah blah blah… you know that type of thing.

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