0:01 It's 11.59 at Radio Free America, and this is Uncle Sam with music and the truth until dawn. 0:06 Right now, I've got a few words for some of our brothers and sisters in the occupied zone. 0:10 The chair is against the wall. The chair is against the wall. 0:14 John has a long mustache. John has a long mustache. 0:18 It's 12 o'clock, Americans, another day closer to victory. 0:21 And for all of you out there on or behind the lines, this is your song. 0:26 Good evening, ladies and gentlemen, and welcome to the... 0:28 I have a joke for you. 0:29 Okay. 0:30 The government in this town is excellent and uses your tax dollars inefficiently. 0:35 Ho ho ho ho ho. 0:37 Pay attention. 0:38 Pay attention. 0:39 Pay attention. 0:40 I didn't see you coming. 0:41 I didn't see you coming. 0:42 At the moment, all you can do is use your food. 0:46 At the moment, all you can do is use your food. 0:47 We all know this, I don't see why anybody would like to use Bitcoin. 0:50 We all know this, I don't see why anybody would like to use Bitcoin. 0:51 Bitcoin is immune from attack almost completely. 0:56 With Bitcoin, you actually gain far more from using the computer power to generate Bitcoin. 1:00 There's a system approaching perfection. 1:02 It's in time for it to disappear. 1:03 There's a system approaching perfection. 1:05 It's in time for it to disappear. 1:07 We'll walk deeper into the belly of the beast. 1:10 It means I'm able to further limit reckless government spending. 1:13 I mean, I have so many ideas. 1:15 Some are simple, like take down traffic lights and eliminate the post office. 1:20 The bigger ones will be tougher to fight. 1:22 Bring all of this crumbling to the ground. 1:30 Good evening, ladies and gentlemen. 1:32 This is The Crypto Show. 1:34 A show dedicated to understanding the promise of currency, technology, and anarchy in the pursuit of a free society. 1:44 And if you believe like we do that such a society can and should exist, then join us, why don't you, as we parade through a world unbound by convention. 1:55 A world sketched by the beauty of the human artist. 1:59 Because each and every one of you listening right now is that artist. 2:03 So, for the next two hours, let go of your most sacred system of thought and entertain the possibility that maybe, just maybe, 2:13 everything we've been told about currency, technology, and yes, even that dirty, dirty little word, anarchy, 2:21 is only one part of the never-expanding, never-possible, complex universe of ideas, one that we simply refuse to explore. 2:31 So, what do you say, listeners? 2:33 Let's do some universe exploring tonight and have some fun while we do it. 2:44 This is a celebration. 2:46 Celebrate good times, come on! 2:54 But really, Danny, what's there to celebrate in this deep, dark, terrible world of ours? 2:58 I guess all the good stuff that they got right in Back to the Future. 3:02 I know! And speaking of which, happy Back to the Future Day on this lovely October 21st, 2015. 3:10 Exactly 30 years into the future from when Marty McFly and Doc Brown entered time. 3:19 And what did they get right, Danny? 3:22 I don't know, you tell me. 3:24 Well, there is supposedly, and I don't think it was a hoax, it came out, I think, earlier this year, an article about a sort of hoverboard that uses magnets. 3:33 And it has to be on a particular kind of surface. 3:36 But they kind of got that right, although it's not mass-produced and it's limited in its ability. 3:42 Biff Tannen is running for president, a.k.a. Trump, Donald Trump. 3:48 So that's kind of what they got right. 3:50 And both of them built their fortunes on casinos. 3:53 So, I don't know, Back to the Future may be more prescient than we give it credit for. 4:00 But only time will tell. 4:02 Real quick, there's a great video. 4:04 Type into YouTube, Back to the Future 9-11 in the walk. 4:09 And there's a cool video by a guy who does other cool stuff on Back to the Future about the walk and how it's predicted in the Back to the Future movie. 4:17 As well as, there's some other cool aspects he gets into both in that short video as well as others. 4:23 But I thought it was a cool, kind of creepy little seeming halfway prediction about Robert Zemeckis releasing the walk around late September, October 2015 as predicted in Back to the Future. 4:38 Anyway, but tonight it's more about Bitcoin. 4:42 Tonight we're having two guests. 4:44 A returning guest, Connie Gallippi of BitGive. 4:48 BitGive is a Bitcoin charitable foundation. 4:52 And we're very supportive of their efforts. 4:55 And it sounds like they have some recent efforts we're going to talk about. 4:58 And we also have Paul Sztorc of Truthcoin. 5:16 And that sounds like an interesting little project. 5:18 Truthcoin in prediction markets. 5:21 And that should be a lot of fun. 5:24 And I guess now we're going to quickly roll through some announcements that Danny has so generously pre-recorded. 5:31 Our sponsors as always, Brave New Books, 1904 Guadalupe. 5:35 For all your suppressed information and premium health food products. 5:38 Such as tangy tangerine and all of the longevity lime. 5:41 As well as Burke's Superfood. 5:43 Also, Hill Country Home Improvements and Logos Radio Network. 5:46 Without whom this show would not be possible. 5:49 If you're listening in on one of the podcasts available at LogosRadioNetwork.com. 5:53 Let's Talk Bitcoin. 5:54 LRN.FM or Bitcoin Talk Radio. 5:57 Those are brought to you by RuleOfLaw.com. 5:59 So if you have legal issues or you just want to know what your lawyer should be doing. 6:03 Check out RuleOfLawRadio.com. 6:05 If you're listening to one of the podcast versions. 6:07 Be sure to follow us on Twitter and Facebook. 6:09 So you'll know who our next guests are. 6:11 That way you can participate live. 6:12 Through our call in number at 512-646-1984. 6:17 On Wednesdays and Sunday nights. 6:19 8 to 10 p.m. Central Standard Time. 6:22 All of our sponsors have links or discounts at thecryptoshow.com. 6:25 So just click through from there to find the best deals. 6:28 And to keep up with upcoming events. 6:32 That was pretty good. 6:34 I mean I think I do it better when I ramble on for 15 minutes. 6:37 All about our sponsors and upcoming events. 6:42 That's acceptable for now, Danny. 6:46 I like to give you the floor a little bit here and there. 6:49 That was really good actually. 6:51 It makes it a lot easier. 6:52 It's quick. 6:53 It's clear. 6:54 And stays on point. 6:56 And if you want to know additional updates with Brave New Books. 7:01 Of course, go to BraveNewBookstore.com. 7:03 And check out TheBitcoinBookstore.com. 7:08 Where you have I think over 50 bitcoin books available. 7:13 Through Brave New Books' sister website. 7:17 All right. 7:18 Well, I think we're going to call Connie Gallippi here in just a moment. 7:22 She's supposed to call us. 7:23 She's supposed to call us. 7:25 That's pretty exciting. 7:26 In the meantime, real quick. 7:27 I'm going to talk about a book that I just borrowed from somebody. 7:32 It's called Classified Woman. 7:34 Now this book has been around for a while. 7:36 And I was delighted to find out that this acquaintance is into a lot of the same stuff that I'm into. 7:43 Or we're into here in the show. 7:46 Oh, good for you. 7:48 Oh, well, thank you. 7:49 So Classified Woman is about former FBI translator Sybil Edmonds. 7:53 Who is the most gagged woman in history. 7:57 Legally speaking. 7:58 And it's the Classified Woman, a memoir. 8:02 The Sybil Edmonds story. 8:06 And we'll talk more about that later in the show. 8:09 I'm excited to be able to read that. 8:11 But in the meantime, our first guest is on the line. 8:15 Connie Gallippi of BitGive. 8:17 Connie, are you there? 8:20 Hello. 8:22 There she is. 8:23 Hey, Connie, how are you? 8:25 I am well. 8:26 How are you? 8:27 We're doing pretty good. 8:29 A little tired, but we're doing pretty good. 8:31 Happy to be here with you on the Crypto Show. 8:34 So for those who don't know, real quick, I'm going to just give a brief bio of Connie. 8:38 Ms. Gallippi founded BitGive in mid-2013. 8:41 Taking an early role in Bitcoin philanthropy and founding the first Bitcoin 501c3 nonprofit. 8:47 Through her work with BitGive, Connie has built a positive philanthropic representative foundation for the Bitcoin industry. 8:53 Bridging the gap between an innovative technology and its practical applications for nonprofits and humanitarian work in the developing world. 9:01 Connie is a well-known industry spokesperson for the social impact of Bitcoin and advocating for more diversity and equal opportunity in the digital currency community. 9:09 Previously, Connie worked with environmental organizations in California for over 14 years specializing in consulting, strategy development, policy and advocacy, funding assistance, and program management. 9:20 Most notably, her work included the development and implementation of multi-million dollar programs in public funding for the environmental sector. 9:29 She remains involved as a board member for California Urban Forest Council. 9:33 Well, Connie, glad to have you back on the Crypto Show. 9:39 I know we don't have a ton of time with you, but just give us a quick, before we get to the topic at hand, for the listeners who may not have heard your previous appearance on the Crypto Show, just give a quick rundown of what BitGive is. 9:54 Okay, great. Well, first of all, thank you for having me on, and that's quite an introduction. 10:00 Straight off of your website. 10:02 Yeah, well, thank you. So, as you mentioned, BitGive is the first government-recognized nonprofit in Bitcoin. 10:12 So, we've been around since 2013 and working hard to leverage Bitcoin and blockchain tech for nonprofits and charitable organizations. 10:23 And we focus largely in the developing and emerging world, accessing through nonprofits that are well-known and established, and building relationships with them, exposing them to Bitcoin and the technology itself, and working closely with large groups like Save the Children, Medic Mobile, the Water Project, and many others. 10:48 That's many other projects that you've worked on, and maybe it needs to go without saying, but I like the fact that you focus on the underdeveloped world. 11:00 Obviously, they need more help, because while there is certainly charitable giving and philanthropy to be done in the United States and the first world, the beauty of the first world is we have the infrastructure and the capital investment and the technology, 11:15 such that even a very poor person, not to say that there aren't very hard-up people, but even a very person who's down on their luck has a lot more opportunity, even here in these economic times, to rise up on their own, lift up their own bootstraps and rise up without help. 11:32 But in the third world, it's not quite the same. 11:34 And introducing the third world, not just to charitable giving in Bitcoin, but introducing them to Bitcoin technology is so important, too. 11:42 Exactly. Yeah. 11:44 Yeah, I mean, we obviously have our struggles here as well and in other parts of the world that are more developed, but we have things like clean water and equal rights and the ability to access economic services and many, many of those things, health care, all of that, are not accessible or are very difficult to access. 12:08 There's many, many challenges in front of folks that are developing an emerging world to even have those basic things. 12:15 So that's why we're focused for now. 12:20 Yeah, exactly. A lot of stuff we take for granted. 12:23 Well, I know another focus you guys are having currently is you've got a special fundraiser going with Cheap Air, I believe. 12:32 Go ahead and tell us about that. 12:36 Yes, we do. 12:37 So it's just a few more days that are left and as running until the 24th. 12:44 So I believe that's Saturday. 12:47 And basically what we're doing is Cheap Air for every Bitcoin booking that is made is donating five dollars to BitGive. 12:57 So everyone who's thinking about heading off somewhere for the holidays, Thanksgiving, Christmas, all the different holidays that happen during the holiday season, as well as conferences and other events, if you're planning on booking flights, you could do it through Cheap Air and pay with Bitcoin and they will donate five dollars for each of those bookings to BitGive. 13:25 That's pretty awesome. What a great fundraiser. 13:28 Well, we're coming to break and we'll be right back to talk with Connie Gallippi of BitGive about some of the recent stuff that BitGive has been doing, including this fundraiser with Cheap Air. 13:41 And Danny and I will probably be contributing as we're probably going to be using Cheap Air for a conference we're doing soon. 13:49 We're coming to break. So stay tuned to The Crypto Show and we'll be right back with Connie Gallippi. Stay tuned. 13:54 Don't worry, folks, if you missed the latest episodes of The Crypto Show, you can always catch the replays on Tuesdays and Fridays on BitcoinTalkRadio.com as well as the latest news in the Bitcoin space. 14:05 That's BitcoinTalkRadio.com or just find them on the TuneIn app. 14:11 You are listening to the Logos Radio Network. 14:17 Logos Radio Network.com. 14:25 This is what happens when you call the cops. 14:27 Say what? 14:28 This is what happens when you call the cops. 14:30 Come on. 14:31 This is what happens when you call the cops. 14:32 You get your rights violated or you all get shot. 14:35 Pow. 14:36 This is what happens when you call the cops. 14:38 Pow. 14:39 This is what happens when you call the cops. 14:40 What? 14:41 This is what happens when you call the cops. 14:42 You get your rights violated or you all get shot. 14:45 Pow. 14:46 I'm sick of people being victimized by criminal cops. 14:48 Psychopathic predators terrorizing neighborhood blocks. 14:50 Equipped with pepper spray, mace, cuffs, tasers, and glocks. 14:53 They like serial killers acting out subliminal thoughts. 14:55 Forget what you taught. 14:56 These cops have got a license to kill. 14:58 Witness intimidation means that they can use it at will. 15:00 Code of silence means that the pigs will never let out a squeal. 15:03 And if they go to court, they know the judge will make them a deal for real. 15:06 That's why they stopping me. 15:07 Locking me up and stopping me. 15:09 Confiscating my property. 15:10 Talking in my demography. 15:11 Making the poor commodities. 15:12 Profiting off of poverty. 15:13 Enforcing policies. 15:14 Supporting prison economies. 15:15 Yeah. 15:16 No one makes money when the violence stops. 15:17 Hating brutality. 15:18 It's the way to make money. 15:19 All right, guys. 15:20 Welcome back to the Crypto Show here on this lovely Back to the Future Day, Wednesday, 15:25 October 21st, 2015, here on Logos Radio Network, brought to you as always by our sponsors, 15:33 Hill Country Home Improvements and Brave New Books. 15:36 And we're talking with Connie Gallippi of BitGive. 15:39 And she is currently involved in a cool fundraiser with CheapAir. 15:44 If you don't know what CheapAir is, it's a website that can get you, well, cheap airline tickets, and they accept bitcoin. 15:51 And we're probably using them for our conference in San Diego that's coming up next month. 15:58 Actually, December. 15:59 December 14th through 16th in San Diego. 16:02 December 14th through 16th, which we're probably going to attend. 16:05 So we're going to contribute to that fundraiser. 16:08 And they're doing a special thing with BitGive. 16:11 And in case you are just tuning in, Connie, go ahead and tell us again about that fundraiser. 16:20 Sure. 16:21 So we're working with CheapAir through the 24th of October, which is this Saturday. 16:26 And for every booking that's placed and paid in bitcoin, they will donate $5 to BitGive. 16:34 So we're very excited about that. 16:36 And we're just encouraging folks who probably already have plans to travel for the holidays, for conferences, for vacations, to book during that time so that they can get more for their money. 16:49 Not only their flight, but a $5 donation to BitGive. 16:53 And that's really cool. 16:54 And you're absolutely right. 16:55 It's the perfect time of year. 16:57 It's the holidays. 16:58 We still have Halloween. 16:59 We still have Thanksgiving and Christmas and anything in between. 17:04 And why not? 17:06 I mean, I always encourage people to give even if it means actually directly giving to, say, bitcoin out of their own pocket. 17:15 But the beauty of this is you can give without giving. 17:18 In other words, you don't actually – it doesn't come out of your pocket. 17:21 Cheap Air is generous enough to donate $5 worth of bitcoin. 17:26 And so you don't have to spend anything extra. 17:28 All you have to do is save money on an airline ticket to go where you are going to go anyway because most people, they plan to go visit their family over the holidays. 17:39 It's not like, oh, darn, if I want to help out, I got to buy a ticket. 17:43 You're just doing what you're going to do naturally. 17:46 You can buy a ticket with bitcoin, and then Cheap Air can give bitcoin, donate bitcoin to BitGive, and then BitGive can use that bitcoin to help out people all throughout the world. 17:57 And I think that's really cool. 17:59 And Connie, is this the first time – probably not – that you've had a fundraiser like this with another company or organization where they've offered to donate based on sales or anything like that? 18:11 Yeah, I think definitely. 18:14 I mean we've had other – we have other integrations and things like that which have similar benefits to, say, a consumer. 18:23 But this is the first time that we've done really a promo like this. 18:27 So it's pretty exciting. 18:29 That is pretty exciting. 18:30 Well, I want to get into some of your recent stuff, but I guess since we're still on the topic, do you want to quickly just mention any maybe ongoing types of things like this that you have with any companies out there? 18:43 Yes, absolutely. 18:45 So we have a few. 18:48 One is really easy and quick, which is to redirect tips on ChangeTips. 18:55 So if anybody is on ChangeTips and they're getting small tips here and there, you can actually opt to redirect your tips to a nonprofit. 19:05 And BitGive is at the top of the list. 19:08 We help them actually spearhead the whole redirect – tip redirect integration. 19:14 That's really cool. 19:15 We love ChangeTips. 19:16 We actually do that with Freeross.org. 19:19 In fact, we were the ones that got it added. 19:22 Awesome. 19:23 There you go. 19:24 That's perfect. 19:26 So yeah, so that's a great easy thing. 19:28 And then we also have a wonderful partnership with Purse, which is another great thing for the holidays but for any time really, which will – it's an opportunity to save money by using Bitcoin when you shop on Amazon. 19:46 So Purse is a platform for that. 19:49 It basically allows you to shop on Amazon but pay in Bitcoin, and you can save money by doing that. 19:56 And what we've done is a partnership with them that integrates Amazon Smile, which is Amazon's program to support charities and nonprofits. 20:05 So you can sign up on Amazon to support your favorite charity, which you can also do for BitGive. 20:15 But on Purse's platform, if you want to spend your Bitcoin, you can also benefit charities, and we have a sponsor right now that is GEM. 20:26 So the program with Amazon Smile is 0.5% of the purchase price is donated to your favorite charity. 20:35 And that's also not – it's not out of the pocket of the consumer. 20:40 It's Amazon donating it. 20:42 And what we've done is we've recreated that with Purse and through the sponsorship with GEM that that same 0.5% of the purchase price will be donated to BitGive when you use the Purse platform. 20:54 And GEM is basically making those donations to BitGive on behalf of the consumers. 21:03 That's really neat. 21:04 And typically, the whole idea of consumerism and charitable donation are thought of as being at odds, and I'm not necessarily saying they are or they aren't or saying consumerism is good or bad or whatever. 21:20 But the beauty of something like this is that they're not at odds. 21:24 You can spend stuff on Amazon to get whatever you need and help a charitable donation at the same time, and you can save up to like 30%, I think, off of stuff of Purse.io. 21:38 In fact, we're an affiliate too. 21:40 And so it's a great way again to save money while helping out a great cause, and that's so cool. 21:47 So we're also a Purse affiliate. 21:50 Can we add something like that to our affiliation with this charitable link or what? 21:57 Probably. 21:58 I don't know. 21:59 We'll have to talk about that. 22:00 I don't know what the affiliate program is like. 22:03 But it's basically about if you choose an Amazon Smile product, then on the Purse platform, you have to opt in and say, yes, I want to participate in the Smile program. 22:17 But it's no money out of the consumer's pocket. 22:20 So you just say, yes, I want to do that, and then Jim actually makes the donation. 22:25 Well, yeah, we'll definitely have to see if we can do that because we'd love to give a portion of any affiliate sales that we get to BitGive. 22:33 We'll figure out a way to make that happen. 22:35 What does Jim do, and how can people participate with Jim? 22:40 So Jim is an awesome new startup in Bitcoin. 22:44 They're based out of Los Angeles. 22:48 And basically, they have a really interesting technology that makes using Bitcoin really easy, which we all know Bitcoin isn't always that easy. 22:57 And we could really improve on how our public interface is to help with mainstream adoption and onboarding. 23:07 And Jim's done a really great job with that. 23:10 So you'll have to look them up and look more into the details of what they're all about. 23:15 But we're really, really excited to be working with them. 23:18 And they're wonderful people, really supportive of BitGive, and extremely supportive of the Bitcoin industry and building community. 23:29 So we like to work with companies that are about lifting up the space overall, while they're also obviously working very hard to provide their products and services. 23:41 So Jim is one of those, and we're really proud to be partnering with them. 23:48 Well, that's really awesome. 23:49 And it's very encouraging that the space is flourishing so much. 23:54 Not just the Bitcoin space, but the charitable aspects of Bitcoin and making all of these things possible. 24:03 And bringing Bitcoin to not just philanthropists, but to the needy and people in the underdeveloped world. 24:12 Well, we've got about a minute left, Connie. 24:15 Should we have her come over on the other side for a minute? 24:18 Yeah. 24:19 To wrap things up? 24:20 Yeah, we'll bring Paul on and he can be standby. 24:23 Okay, cool. 24:25 We are talking with Connie Gallippi of BitGive, one of the premier and first and biggest... 24:34 Bitcoin charitable foundation. And she's been a guest on the show before. 24:37 It's cool to see progress over time of something like BitGive as Connie comes back to the show. 24:44 And we're really excited about their cheap air fundraiser. 24:47 The legitimacy it gives to the general public when you can just tell Joe Schmo on the street that, you know, the philanthropy is being done. 24:56 Yes. And instead of them focusing on the Silk Road and drugs and all this, they can see that Bitcoin does so much more to actually help people. 25:04 Not that there's anything wrong with that. 25:05 Not that there's anything wrong with it at all. We'll be right back with Connie Gallippi of BitGive. Stay tuned. 25:09 Join the crypto show December 14th through 16th in sunny San Diego, California for InsideBitcoins. 25:16 With some of the top names in Bitcoin on the roster, check out the details at InsideBitcoins.com slash San-Diego-2015. 25:26 Or just click through on the banner ad at thecryptoshow.com. 25:30 That's December 14th through 16th InsideBitcoins in San Diego. See you there. 25:46 What's your plan for tomorrow? Are you a leader or will you follow? Are you a fighter or will you cower? It's our time to get back to power. 25:58 What's your plan for tomorrow? Are you a leader or will you follow? Are you a fighter? 26:04 I'll tell you what your plan for tomorrow is. Your plan for tomorrow is to go to cheapair.com. 26:10 Get your tickets to go visit your family for Christmas and $5 from that that you don't pay. 26:17 CheapAir pays it, so you're not getting an extra cost added on to your airfare and you're getting discounted airfare at that. 26:24 So it's a double plus, but $5 of that in Bitcoin. We'll go to BitGive, the Bitcoin Charitable Foundation. 26:31 And then after that, because it is Christmas and Christmas is about gift giving, you're going to go to Purse.io. 26:38 Or actually, Connie, if people want... That's what she said. 26:42 You can use Purse.io to buy stuff off Amazon, again, at up to 30% discounts and 0.5% of that will go to BitGive. 26:53 And Connie, quickly, how do people use the Purse.io in order to donate to BitGive? 26:59 Do they go to the BitGive website or what do they have to do? 27:02 No, it's actually perfectly integrated with the Purse platform. 27:08 And now, actually, they have it integrated with their new instance, which is a much easier way of using Purse. 27:16 So basically, you just go to their website, which is Purse.io, and you search for items that you would like to buy off of Amazon. 27:26 And if it's an Amazon Smile product, which basically means that the vendor has agreed to participate in the Smile program, 27:36 all you have to do is click on a button when you check out. 27:39 It says, Purse 1% Initiative. 27:42 And it basically means that you're opting in and saying that you would like for our sponsor, which is JEM, to donate 0.5% of the purchase price to BitGive. 27:55 And we call it the 1% Initiative because Amazon Smile also does the 0.5%. 28:00 So together, JEM is matching that, and together, it's a 1% donation of the purchase price. 28:07 Well, that's pretty awesome, and that adds up. It really does. 28:10 And just real quick, maybe... 28:11 So that's the good 1%, not that evil 1%, right? 28:14 Da-dun. Rim shot. 28:15 Yes. 28:17 Well, hey, Connie, and I hate to make you repeat yourself, although it's good for our listeners just to drive it home. 28:23 I don't know if you mentioned... 28:24 Yeah, because our listeners smoke a lot of weed, and they can't remember stuff. 28:27 No, I'm just kidding. 28:28 True story. I didn't want to say it on air, but it's true. 28:31 But with Cheap Air, how does that work? 28:34 Is there a code for Cheap Air, or how do people get to donate to BitGive? 28:40 Or is it anybody who donates? 28:42 No, it's all purchases done with Bitcoin. 28:45 All purchases done with Bitcoin, okay. 28:47 Yes. 28:48 That's so awesome. 28:49 There's no code or anything. 28:50 It's just if you pay in Bitcoin, they will donate $5 to BitGive. 28:54 And it runs through this package. 28:56 Which is, for them, is really only 2% because they're saving 3% by not using a credit card. 29:01 That's a good point. 29:03 Exactly. 29:04 That's actually a really good way of looking at it. 29:07 And actually, it's even less because it's just $5. 29:09 So if you get like a $500 plane ticket, it's only 1% for them, so pretty cool. 29:14 So guys, go to Cheap Air. 29:17 Buy in Bitcoin. 29:19 You'll get money donated to BitGive. 29:21 Use Purse.io, Amazon Smile, and Jim, and you'll donate up to 1% to BitGive. 29:27 And then you know what? 29:28 It is the season of giving. 29:30 Then go to BitGiveFoundation.org, and you can donate directly to BitGive as well. 29:34 The trifecta. 29:35 Help out people throughout the world using Bitcoin. 29:38 Because Bitcoin is more than just a new currency and technology. 29:42 It really is a force for good despite the propaganda the government and other organizations put out. 29:48 Well, Connie, what other projects have you guys been working on lately that you'd like to talk about? 29:56 I have two things I wanted to mention. 29:59 So one is our charitable campaign that we've been focused on for a while now is with Medic Mobile. 30:07 And they provide mobile phones to health workers in the developing world using open-source tech and mobile tech to improve health care. 30:18 So we're supporting them. 30:20 And just a $10 donation to them supplies a new phone to a health worker, and that improves the health care for up to 50 people. 30:30 It's a pretty powerful, easy way to really, really make a huge difference. 30:35 And with using technology, right? 30:38 So we're supporting them, and we're supporting specifically a program in Nepal after the earthquake for relief efforts and for strengthening the health systems there after the earthquake. 30:50 So that's where the funding will go. 30:53 Well, that's really awesome. 30:57 Yeah, those sound like really worthy projects. 30:59 Now, with Medic Mobile, and like you said, we just love combining technology with other forces for good in the world, including charitable donations. 31:09 Now, with Medic Mobile, this works assuming the U.S. government doesn't drone bomb the particular recipients, right? 31:18 Oh, jeez. 31:21 Sorry, I didn't mean to go there, but it's just like, God, how awful that was. 31:25 I still can't get over that. 31:28 I'm sure, as people know, unfortunately Doctors Without Borders, was it in Afghanistan? 31:35 I believe so. 31:36 Yeah, it was drone bombed by the U.S. government. 31:40 It's just ridiculous. 31:41 Anyway, I don't mean to take us to negative places. 31:43 That was kind of a bad joke. 31:45 Not a joke meant, obviously, to make fun of the situation, but just to remind people again of the evil forces in the world, like the U.S. federal government, versus the good forces in the world, BitGive, the Charitable Foundation, and Connie Gallipoli. 32:02 Connie Gallipoli, excuse me. 32:03 And, of course, just Bitcoin as a technology in general. 32:06 Those are the things bringing good to the world and helping things like Medic Mobile, and I think that's awesome. 32:13 Not to mention all the money that's saved on transaction fees and fundraising platforms and all that, just like the fundraiser we did for Free Ross. 32:23 We had zero transaction fees or overhead. 32:27 Every penny went to the fundraiser because we used Bitcoin, and we avoided using the fundraising platform. 32:34 Directly, and real quick, speaking of which, we were at the New York City Liberty Fest. 32:39 We sold a few items for the Free Ross fundraiser, and a couple of times when we did that, we simply had the people open up their smartphone, send Bitcoin from their smartphone wallet directly to the Free Ross Bitcoin wallet, and they just showed us the confirmation on the blockchain, and that was it. 32:59 We just handed them the stuff. 33:00 That simple, that costless, and that's the beauty of Bitcoin. 33:04 But, well, anyway, Connie, go ahead and continue with some of the stuff you have been doing. 33:11 Okay. 33:13 Well, so we have one more exciting thing. 33:15 It's a very busy season for us. 33:17 We have a lot happening at the same time, but we have one more exciting thing, which is that we are participating in the auction of a Bitcoin comic book that has been signed. 33:28 It has been signed by over 90 of the Bitcoin pioneers in the industry. 33:33 By Satoshi Nakamoto? 33:35 Wow. 33:36 That is so cool. 33:38 Sorry. 33:39 It may have been. 33:40 We don't know. 33:41 Good point. 33:42 Wait, 90? 33:43 Are you serious? 33:44 Yeah, we've got over 90. 33:46 Can you give us some of the names? 33:47 We're at like 95. 33:49 Yes, I can give you some of the names. 33:51 Right now, I don't have an internet connection, but I'll have to do it off the top of my head. 33:55 I know we have, since you mentioned Satoshi, we do actually have Nick Szabo's signature. 34:03 Not that I'm saying here for Doji, but a lot of people think he may be. 34:08 We also have folks like Andreas. 34:11 We have folks like Barry Silbert. 34:17 Gosh, I'm really going off memory here because I don't have the internet. 34:24 Yes, we have Roger. 34:27 I think we have Eric. 34:29 We have, let's see, who else? 34:33 Peter Kirby from Factum. 34:36 Scott Robinson from Plug and Play. 34:39 Tatiana Moreau. 34:41 Oh, cool. 34:42 Yes. 34:44 She's Polish like our next guest. 34:47 Oh, yeah. 34:49 I love Tatiana. 34:50 She's a good friend. 34:52 She's great. 34:53 We were hoping to see her at New York Liberty Fest, but she was actually in, was it Czech? 34:57 Poland. 34:58 No, she was in Poland. 34:59 She was in Poland at the time, anyway. 35:00 Yeah, she was in Poland. 35:01 Yeah. 35:02 That's really cool. 35:03 It's a graphic novel or comic book with 90 plus signatures from some of the biggest names 35:08 in Bitcoin. 35:09 Sorry, so BitGive is helping to auction this off? 35:12 Yes. 35:13 The Latin American Bitcoin Conference folks are auctioning it off as part of their event 35:20 that's coming up in early December, and we are going to benefit from the proceeds. 35:26 So BitGive will have the proceeds from the auction come to us, and we'll be putting them 35:32 towards our newest project, which is to build a donation transparency model on the blockchain 35:39 so people can actually see donations flowing from start to finish on the blockchain. 35:46 That's pretty incredible, and there isn't a better cause that the proceeds of that could 35:50 go to. 35:51 Congratulations. 35:52 I imagine it's going to fetch a lot of money, because if I had that kind of money, I would 35:56 probably spend thousands of dollars on it to get my hands on it. 36:01 That's really cool. 36:02 Well, Connie Gallippi of BitGive, we've got about 30 seconds left. 36:05 Thanks for being on the show. 36:06 Do you have any final thoughts or plugs to give out? 36:10 Well, I just wanted to say thank you, and if you want to make a bid on the comic book, 36:16 we're doing it on Twitter, and you just have to hashtag bidforbitcoincomicbook. 36:21 And remember, Key Fair is going through Saturday, so you can book your travel for the holidays 36:28 and do all your holiday shopping afterwards. 36:29 Excellent. 36:30 Well, thank you, Connie Gallippi of BitGive. 36:31 We'll be right back here on the Crypto Show. 36:40 Don't want a chip in my mother, a chip in my wife. 36:54 I don't want a chip in my babies. 36:57 Stay out of my lives. 36:59 Don't want no shackles. 37:01 Don't want no shackles on me. 37:05 I sit down with Big Brother. 37:10 Shame on that Big Brother trying to track and trace me and all you tagged animals. 37:14 All right, guys. 37:15 Welcome back to the Crypto Show here on this lovely October 21st, 2015. 37:20 Back to the Future Day, I think everyone knows at this point. 37:24 And, of course, it's fitting in a way, because even though maybe a lot of the technologies 37:30 predicted in the Back to the Future series have not come to fruition, at least not outside 37:36 of black budget government programs behind the scenes, we do have awesome technologies, 37:42 nonetheless, that are making the world a better place, like Bitcoin. 37:45 And we were just talking with Connie Gallippi of BitGive and the BitGive Foundation, 37:52 the first, the biggest, and the foremost Bitcoin charitable foundation. 37:58 And they have a lot of cool projects going on. 38:00 Oh, my. 38:03 Including helping George Takei with his Tourettes, where he just constantly says, 38:10 oh, my, in that very silly voice. 38:15 But, so, guys, just to recap real quick, check out BitGive and BitGiveFoundation.org. 38:23 Check out some of the charitable stuff. 38:25 There are ways to donate. 38:27 Cheap Air, buy a plane ticket using Bitcoin on Cheap Air. 38:29 Five bucks gets donated to BitGive. 38:31 Use Purse.io. 38:33 Include, do Amazon Smile and Jim, and they get 1%. 38:39 Just, you know, pick BitGive as the recipient of the donation. 38:44 And, of course, you can always also donate directly to BitGive. 38:47 You can automatically have your change tip Bitcoin directed to BitGive. 38:51 A lot of stuff you can do very easy. 38:53 Some of it requiring actually no money out of your pocket. 38:55 Or you can even go to our website to the FreeRoss page and find all kinds of half-price advertising 39:01 and just all kinds of good Bitcoin-themed things that will go directly to FreeRoss.org. 39:08 Absolutely. 39:09 And then actual physical prizes you can purchase as well. 39:13 Yeah. 39:14 I mean, if you're a Bitcoiner and you don't have the Bitcoin rebel T-shirt, you're just a shame. 39:18 You're a fool. 39:19 You're a fool. 39:20 We need to get that full. 39:22 There's one left. 39:24 Oh, wow. 39:25 Yeah. 39:26 Well, better get on that. 39:27 Get it. 39:28 Go to thecryptoshow.com slash FreeRoss. 39:30 Donate and purchase some cool stuff. 39:32 All proceeds go to the FreeRoss. 39:34 Thanks to Bitcoin, not bombs. 39:35 Thanks to Bitcoin, not bombs. 39:37 Exactly. 39:38 And real quick, last plug. 39:39 Before we get to our second guest, who's been very patient, I want to plug Jamie Redmond of Cryptographics.com. 39:47 Jamie made our logo, the coolest logo in radio. 39:51 And he's also donated half-price graphics design on thecryptoshow.com slash FreeRoss, 39:59 all proceeds of which go to the FreeRoss Appeals Fund. 40:03 So check that out. 40:04 All right. 40:05 Well, very pleased to have on an awesome guest with a very interesting technology and Bitcoin application. 40:14 His name is Paul Sztorc. 40:16 That's it. 40:17 Did I get it right? 40:18 Okay. 40:19 You did. 40:20 Excellent. 40:21 Probably the first ones to get it right. 40:23 It's very commonly mispronounced. 40:25 Everyone in my family and extended family, we're all over it. 40:29 So you can just pronounce it however you like, and we'll just smile and just we'll run with it. 40:35 We're used to it by now. 40:37 I'm going to subtly change it throughout the show every time I say his name. 40:43 But Paul is the creator of Truthcoin. 40:47 And I guess, Paul, I didn't get a chance to get a bio on you, so tell our listeners a little bit about yourself. 40:55 Well, so Truthcoin is a project about prediction markets, and I became interested in these types of markets basically as soon as I heard about them when I was 14 and I was a sophomore in high school. 41:10 And so I've been interested in them since long before Bitcoin existed, let alone since I became aware of Bitcoin. 41:17 Prediction markets have their own kind of problems kind of remaining alive and scaling up successfully. 41:25 And so when I discovered Bitcoin, it sort of reminded me of this prediction market thing. 41:32 So when I discovered Bitcoin, I was in graduate school, and then I went and got a job at the economics department. 41:39 And while I was working there, I wrote this prediction markets blockchain, Bitcoin blockchain protocol concept. 41:49 So I guess I've worked in a number of fields, consulting and in analytics and mostly in a statistics finance role. 42:01 But then I transitioned to working as a researcher at the Yale econ department by the time that I discovered Bitcoin and by the time I wrote this while I was there. 42:11 And that was the year 2013 through the end of 2014, and I'm still part-time there. 42:19 But now I'm doing, thanks to Roger Ver, I'm kind of doing this Bitcoin stuff full-time, which is obviously never a dull moment, as I'm sure I need to tell you. 42:29 No, always exciting. Whatever it is about Bitcoin, it's always a thrill and a fascinating venture. 42:37 Well, that's pretty impressive, very prestigious, the Yale economics department. 42:42 Do you have a master's or PhD in economics, or what was your degree in? 42:46 So I have degrees in a branch of applied math called operations research, and I have an MBA in finance. 42:55 And I have an undergraduate degree in economics, and I have a different undergraduate degree in psychology actually. 43:00 And then I was at Yale, and it was sort of like a pre-doctorate economics thing where I would do research and take courses. 43:10 But I kind of dropped out to do this thing before I really even got started. 43:17 Oh, that's good, because I was fixing to say I would be more impressed if you quit. 43:22 There you did. 43:24 Improved kind of technology or Bitcoin style. 43:28 It's a little easier to go back, I think, there, whereas with Bitcoin, the train is in danger of leaving. 43:35 It's like stuff happens so fast. 43:38 I don't know if you've noticed this yourself, but I feel like time has slowed down like an unbelievable degree since I discovered Bitcoin. 43:48 It's like two weeks will go by, and you'll think, oh, someone did something two weeks ago. 43:52 But it will feel like an eternity, because you'll just think, I can just remember so many – there's like so much Bitcoin news constantly, and there's just so many people. 44:01 It just feels like it's all – 44:03 No, it really does, and it's funny, because otherwise, as I get older, time seems to speed up. 44:09 But you're right. 44:10 When it comes to Bitcoin in the show, in conferences we do, in people we talk to, it's just so much is happening in so little time. 44:18 Yeah, time just seems to slow down. 44:21 Except for when the price goes up over $500, then it was really – 44:27 Then the space-time continuum is stopped entirely. 44:30 Well, your degrees are, I think, really appropriate too. 44:34 What a perfect combination. 44:36 You have psychology. 44:37 You've got math and econ, all of which I think are important for Bitcoin, but even more applicable, I think, to prediction markets. 44:45 So that's really cool, and it's really confidence-building in something like Truthcoin, your project, to know that your interest and your actual involvement in stuff like prediction markets goes so far back, and you have such a deep knowledge and understanding of it. 45:03 Well, so I guess, tell us, for those who may not know – I mean, in a way, it's a self-evident term, prediction markets, but there are probably a lot of subtleties to it. 45:13 And some dark sides. 45:15 And definite dark sides. 45:17 For those who don't know what a prediction market is, tell us about that, and then tell us a little more in depth about Truthcoin. 45:25 Okay, I'd be happy to. 45:27 So prediction markets, they're really no different from any other market, except – so in a normal market, you can buy and sell milk, or you can buy and sell anything. 45:39 You can buy and sell a stock or a bond. 45:41 There are people who own those things and want to get rid of them, and there are people who don't have those things and want to buy them. 45:47 And they want to – some people have, for like insurance purposes or for personal reasons or for any kind of reason you want to speculate, etc. 45:59 And so there are all these people for all these inherently individually subjective reasons. 46:05 They transact in this market, and what results is an objective price. 46:10 So the price system sort of appears and allows people to make plans and understand the scarcity of the world around them, and so the prices are a great thing. 46:21 But a prediction market is where you would buy and sell a prediction. 46:25 So you would write sort of something on a piece of paper to make it kind of oversimplified. 46:31 You would write like Hillary Clinton will win the 2016 presidential election, and then you would say this is worth a dollar if this happens. 46:41 And then people would buy and sell this thing, and if it was trading for something like $0.70, you could infer that this event, Hillary Clinton being elected, has roughly a 70% chance of sort of likeliness to occur. 47:03 And so the difference between a prediction market and a regular market is that with regular markets, the price sort of happens accidentally. 47:13 But usually with prediction markets, you are aiming for this price to appear. 47:19 So you kind of go out of your way to invoke this market infrastructure, hoping to make these prices appear so that you can learn about the world. 47:27 Whereas in the Adam Smith sense, they just happen – we get them kind of for free and they happen naturally. 47:33 With this, you need to like do some work and create the predictions and create the markets and do some stuff like that. 47:39 Interesting. And so I guess let me ask you. I could be completely off. 47:43 But is kind of the idea of a prediction market or at least one idea that you throw a prediction out there and maybe the prediction is more complex or has some research behind it that you put out in the public eye. 47:59 Is the concept that the price of the prediction will reflect the overall market's knowledge and ability to maybe predict how accurately that will come true? 48:14 Are you sort of harnessing the power of the market to see what the likelihood of that prediction is? Do you know what I'm saying? 48:21 I think I do, yes. So market prices are very useful. They're very robust to manipulation. 48:30 If someone wants to move the price, they can for like a few minutes. 48:35 But if people realize that this is purely manipulative, then the Wall Street trader types that are like very – they're serious veterans of – they don't fall for like cheap kind of flashy manipulation stuff or kind of tricks. 48:54 They know that this is going to be driven based on the profitability of these underlying shares and these dividends that are being paid and the income of these corporations or the payments made by these bonds or whatever it is. 49:06 So we know that prices do a very good job of revealing to us sort of things in scarcity. 49:14 Paul, we're actually coming to a break. Sorry to interrupt. We'll be right back with Paul Sztorc of Truthcoin here on The Crypto Show. Stay tuned. 49:21 Can't be trusted, can't be trusted, can't be trusted. 49:37 Can't be trusted, can't be trusted, can't be trusted, can't be trusted, can't be trusted. 50:00 Welcome back to the Crypto Show here on this lovely Wednesday, October 21st, 2015, back 50:05 to the future day. 50:07 And of course, we are brought to you, as always, by Brave New Books and Hill Country Home Improvement 50:12 here on Logos Radio Network. 50:14 And in the first hour, we're talking to our first guest, Connie Gallippi of BitGive, the 50:19 BitGive Foundation, and ways that you can help support them through CheapAir and Purse.io. 50:27 Always a pleasure to have her on. 50:30 And currently, we're talking to Paul Sztorc of Truthcoin, and Paul was just telling us 50:35 about prediction markets, what they are, and what purpose they kind of serve. 50:41 And if there's one thing that can't be trusted, it's probably Danny's prediction on anything, 50:47 so he shouldn't be involved in that. 50:49 I'm going to predict, I'm going to go ahead and predict that a bag of donuts wouldn't 50:53 last very long around you. 50:54 I don't know how much money I should put on that, but they're dunkin' donuts. 50:59 You probably would. 51:00 Well, maybe you are better at this than I thought. 51:04 So, you were kind of answering my question and just getting a little deeper into prediction 51:10 markets. 51:11 So, I guess continue to kind of elaborate for us and explain for us how it works, a 51:17 prediction market, and what function prices of prediction market, you know, financial 51:26 instruments serve in the market. 51:28 Okay, great. 51:30 So, I mean, the fundamental idea is very old and very simple. 51:34 It's just asking people to put their money kind of where their mouth is. 51:37 So, it's very easy for one person to say, I think that Hillary Clinton will be elected 51:42 in 2016, but for someone to actually put money on that kind of proves that they're not just 51:50 kind of making stuff up and kind of, you know, just sort of maybe, you know, shooting the 51:56 breeze or whatever. 51:58 And so, but a cool thing about this is that the betting all takes place in this market 52:04 environment. 52:05 So, instead of having a bookkeeper just set fixed odds, the odds change like the way prices 52:10 change in a market based on how much money is wagered on each side. 52:14 So, this enables a lot of different things, but one thing that it lets everyone do is 52:23 look at the market and see what the current price is, and if they disagree with it, they 52:27 can move it to something else. 52:29 They can, if it's too low, they can buy, and they can keep buying until the price is some, 52:35 you know, where they think it should be, and they should be happy to do that. 52:37 They should have an incentive to do that. 52:40 And if they think it's too high, they can short or they can go, they can buy the opposite 52:44 side of that, take the opposite side of that bet, and then the price will come down, and 52:50 they should be happy to keep doing that until the price is where it is. 52:53 So, since it's so easy for someone to bat the price around, the price should stop at 52:58 a place where everyone has some kind of consensus or some kind of agreement that this is the 53:05 fair price. 53:06 This is where the price, the single objective price sort of deserves to be, and that's sort 53:14 of the function that they serve is that they let everyone kind of cancel out their different 53:21 views and contribute their information, and then they rebroadcast all that information 53:26 to everyone. 53:27 So, even people who didn't participate, who didn't do any betting of their own, they can 53:32 look at these prices, and they can learn things about the future, and they can even compare 53:36 different futures. 53:37 They can say, if we did this, what would happen? 53:39 If we did that, what would happen? 53:41 And that has a lot of, that has some serious potential. 53:45 So, basically, yeah, no, it really is, and like you said, in some respects, it's no different 53:51 from a regular market, just by virtue of the fact that all markets have certain similar 53:56 attributes. 53:57 But basically, when using these prediction markets, there are all these opposing forces 54:03 as far as the prediction and where the price moves, and in theory, it tends towards an 54:09 equilibrium where everyone sort of agrees on everything, and you have all the distributed 54:14 information of a market in subjective values and knowledge being reflected in sort of the 54:22 final price of that. 54:23 Is that a fairly accurate thing to say? 54:25 Yeah, I think so. 54:27 It's a conveyor that makes a group's subjective opinions, numerous subjective opinions. 54:35 It collapses them all into one objective thing, so that's really useful. 54:42 And in theory, too, I mean, the market can, a bookie is sort of an expert who judges an 54:47 event and comes up with odds based on his expert opinion, but the market in the aggregate 54:52 can be that way, too. 54:53 And I think the beauty is, too, if you want to move the market in a major way, obviously 54:57 markets, as you kind of mentioned already, can be somewhat rigged or manipulated or pushed, 55:03 but to move a market, if you wanted to move a bookie, you could buy him off, but to move 55:07 a market, you have to risk a lot of money, theoretically, typically, to do that. 55:14 And so for someone to really push the price in a certain direction, they have to put their 55:19 money where their mouth is, and they can't just do it through pulling some string, and 55:25 I think that's kind of the beauty of it, too. 55:28 Yeah, absolutely. 55:29 If you want to, so yeah, you can pay off a bookie or some guy if the guy is the administrator 55:36 or whatever, but for a market, you have a lot of problems. 55:41 So first of all, you might prefer that one thing be one way, but every single person, 55:48 including you, prefers having more money to having less money, so you're going to distort 55:53 this market somewhere else, and you better hope that other people don't find out about 55:57 it or they don't just guess that they see, hey, the price is moving really far in a certain 56:04 direction. 56:06 They might give it to you for like four hours, but later on, they might be thinking, hey, 56:11 this is some guy who's just putting money over here to try and move the price. 56:16 That means that the price is someplace it really shouldn't be, and we can pick up these 56:20 cheap, these chairs are artificially cheap, and we should just pick them up. 56:25 You know, I've sort of over the years informally done occasional personal study of economics 56:32 and a little finance or whatever, and it's amazing the beauty of markets and the subtlety 56:38 of markets, and a lot of people who don't appreciate the power of markets and their 56:42 overall benefit don't realize just all the nuances that go into what seems like a chaotic 56:51 mesh of prices and bids and all that sort of stuff, and it's a beautiful thing. 56:56 On your website for Truthcoin, I think I got this. 57:02 I want to make sure I understood what you were trying to say. 57:05 You have a statement that prediction markets have many applications, which include superior 57:10 alternatives to Lighthouse, Counterparty, Medici, BidShares, and Ethereum. 57:16 What did you mean by that? 57:19 I couldn't tell if you were talking about prediction markets specifically or Truthcoin. 57:24 Anyway, go ahead. 57:25 So, a lot of these projects, I have a, so Truthcoin.info is not only the website for 57:31 my project, but it's also, I have a blog there, and one of my most recent blog posts is called 57:37 Oracles are the real smart contracts, and an oracle in computer science is sort of like 57:44 the computer asks you a question and kind of, it needs like your help, there's some 57:50 sort of black box where the computer needs to know, like, it needs to know, it needs, 57:57 so in the, when people use, talk about it in the blockchain world, the Bitcoin blockchain 58:01 world, they're saying that the blockchain needs to dial out and get some extra information 58:06 and pull it into the blockchain world. 58:10 So they would need to know like Hillary Clinton, was Hillary Clinton elected or not? 58:15 The Bitcoin blockchain doesn't know who any of those people are or what an election is 58:19 or whatever that is. 58:20 So it needs to dial out and get that from an oracle. 58:24 So an oracle is this external data question, and what I'm saying is that this project had 58:30 to solve, in order to exist, it had to solve that problem of how the blockchain becomes 58:34 aware of these facts and these external things in the real world and how it pulls them on 58:40 and maps them into something that the cryptocurrency software can use, and that is way better than 58:48 basically everything that other people are spending their time on, because if you can't 58:53 do that, and none of those projects can do this thing, I spent a very long time looking 58:59 at the way BitShares, Counterparty, and Ethereum were set up, and they cannot, they don't contain 59:09 features that allow them to do this, this thing, so I was, so I'm sort of talking about 59:14 both, because, but to answer your question, I would be talking about Truthcoin, the project. 59:20 Since the project can learn about the external world and pay people based on that, it's sort 59:26 of the real smart contract type project, so it's... 59:31 You explain that really well, actually, and here's why I say that, and we'll start from 59:35 the fact that you're very articulate. 59:37 I had wondered that myself. 59:40 We've had on people from, we've had on Chris Odom of Open Transactions, I think we've had 59:47 someone from Ethereum, we've had people just talk about these various platforms, and I'm 59:56 not a tech guy, but nonetheless, I never quite could see how, I understood the concept in 1:00:02 the abstract, but it never seemed to be explained how the blockchain communicated with the sort 1:00:08 of outside world like you were talking about, you know, how it interfaced and interacted 1:00:13 to get that data, and that makes a lot of sense now, that Truthcoin is something that 1:00:19 can do that, and anyway, continue with that. 1:00:23 Yeah, well, these other projects have been a major disappointment, really, for me. 1:00:27 I actually wrote, so I mentioned that I kind of wrote this idea up kind of for fun in 2013, 1:00:35 but I was very concerned because I felt that it was, you know, a little on the complex 1:00:39 side, to say the least, and, you know, Bitcoin already has, you know, some problems getting, 1:00:46 people complain about this, but they say it's some problems getting developers and getting 1:00:49 enough serious people involved who can, like, work on this full time, and who's, like, going 1:00:53 to pay for them and compensate for this, these risks that they, they used to be very 1:00:58 risky, like, if you were working on Bitcoin, you could, like, people would, like, laugh 1:01:03 at you, and they would say, you know, like, what is that, they wouldn't get it, and so, 1:01:08 like, it was sort of like, how are we going to find these people, and it's still a problem 1:01:11 that people have today, and in 2013, I was thinking, like, no way is there going to be 1:01:17 the spare developer time to, like, work on this open source project. 1:01:23 And so I kind of just wrote it up, like, kind of encoded it up a little, like the proof 1:01:26 of concept, kind of for fun, for my own personal reasons, and then I started to see all these 1:01:32 other, these other projects, which include BitShares and Ethereum and Counterparty and 1:01:38 open transactions as well, to a lesser extent, even colored coins and things like, things 1:01:44 like that, and I, it was, it was just really disappointing because no one, it's just, it's 1:01:53 hard to express, but just so much kind of forcing people to pay or to invest in an open 1:01:59 source idea that's ultimately going to be free, that was kind of weird, and kind of 1:02:05 people building these big teams and getting all these marketing people together, so BitShares 1:02:10 and Ethereum in particular are guilty of this kind of, like, huge kind of cult-like community 1:02:18 thing, or trying to, and kind of trying to, you know, almost spook people, where it's 1:02:24 sort of like, this isn't a competitor to Bitcoin, wink, wink, or something, getting early, kind 1:02:28 of, just kind of this really annoying thing by these people who didn't really seem to 1:02:33 kind of understand, I mean, I'd hate to, I'd hate to talk about them if they're not here, 1:02:39 but for example, Dan Larimer of BitShares, like, clearly had no idea what a prediction 1:02:44 market was, but he claimed that BitShares had prediction markets, but then when I asked 1:02:50 him where they were, he pointed to something that was not even, not even close to anything 1:02:56 resembling. 1:02:57 Well, I want you to know, I want you to know that we're coming to a break, and that the 1:03:01 crypto show has prediction markets, they're just not up yet, no, but we're talking with 1:03:06 Paul Sztorc of Truthcoin, and this is already a really fascinating platform and topic, and 1:03:12 we're really excited to have Paul Sztorc on of Truthcoin, so stay tuned, and we'll 1:03:16 be right back here on the crypto show, guys. 1:03:19 This is the Logos, the Logos, the Radio, Network, Network, Network, Network, Network, Network. 1:03:30 Oh, for the longest time. 1:03:37 Oh, for the longest time. 1:03:42 If you said that Bitcoin was my line, I would tell you, shown up, show you ride. 1:03:53 What else can I do? 1:03:56 I'm so inspired by you, and I'm just holding for the longest time. 1:04:04 Once I knew my stocks and bonds were gone. 1:04:10 All right, guys. 1:04:12 Welcome back to the crypto show here on this lovely Back to the Future Day, and I'm just 1:04:16 going to leave it at that, because you got to figure it out, and if you don't know, you're 1:04:20 a fool. 1:04:22 October 21st, 2015, a Wednesday here on Logos Radio Network, and we are brought to you, 1:04:26 as always, by Hill Country Home Improvements and Brave New Books, and don't forget to 1:04:32 go to thecryptoshow.com slash Free Ross. 1:04:35 Donate directly to the Free Ross Appeals Fund. 1:04:38 Buy at purse.io for discounts of up to 30% on Amazon through the crypto show at thecryptoshow.com, 1:04:43 and you can purchase some tangy tangerine, too, at the crypto show, so check at thecryptoshow.com. 1:04:49 So check that out, and we're talking with Paul Sztorc of Truthcoin, and just so you 1:04:56 know or want to know more information, you can go to Truthcoin.info for a good explanation 1:05:03 of what Truthcoin is and how it operates, and he does have blog articles, as well, for 1:05:09 deeper investigation of the topic, as well as other topics. 1:05:13 And, Paul, you were just, well, just kind of giving, explaining to us about Truthcoin 1:05:19 and how it's superior to a lot of platforms that are out there. 1:05:23 And, Danny, you had kind of a question during the break that Paul kind of addressed off 1:05:28 air. 1:05:29 Why don't you ask him again, and he can address it on- 1:05:31 How would Truthcoin or any other smart contract platform address recurring payments for, say, 1:05:37 people's rent or a phone bill or electric bill, whatever? 1:05:42 Yeah, so my view is that Truthcoin would not, that contract is not quite smart enough 1:05:49 to warrant the big guns, maybe, of Truthcoin. 1:05:54 But I think Bitcoin can already, there's already some stuff in the Bitcoin protocol that just 1:06:00 didn't quite work. 1:06:02 It wasn't actually, it was coded in by Satoshi, but it didn't quite, it didn't quite make 1:06:09 the, sort of the transition into being actually used. 1:06:14 And there were some sort of little quirks in there that, but those quirks are being 1:06:19 fixed. 1:06:20 These new things, relative check, lock, time, verify, and the Lightning Network that I think 1:06:25 will turn Bitcoin, it's sort of, right now it's talked about as this settlement system. 1:06:34 And I think the Lightning Network in particular will turn it more into something that is like 1:06:40 the payments world that people are used to, which I think will include, you won't be able 1:06:47 to, you still won't, you know, no one will be able to take money without your consent, 1:06:50 which is a good thing. 1:06:52 But you'll be able to get, like, recurring bill, you'll be able to get, like, billed 1:06:56 for something and just click it, and it will just be paid instantly, and it will be paid 1:07:00 at certain times, and you can even move, make sort of special transactions that can't 1:07:07 be spent before a certain time. 1:07:09 But with a smart contract, I wouldn't say if it was a six-month term, would I have to 1:07:13 put all of the money in for the full six months? 1:07:16 Say I have a bill that's $200 a month, do I have to put $1,200 in this smart contract 1:07:21 for it to pay out monthly? 1:07:23 Well, yeah. 1:07:24 So I would say, well, it depends on what you want to achieve, but I think that's really 1:07:28 the reason why people don't, well, smart contracts is one of those phrases, right, 1:07:33 where it's sort of like, what does it mean? 1:07:35 It sort of means a different thing to each person. 1:07:38 It's sort of a little bit of a Rorschach type experience. 1:07:41 But I think it's desirable, right? 1:07:43 You don't want to have to pay up front for six months. 1:07:47 Why should you do that? 1:07:49 So why would you want to make recurring payments? 1:07:52 So you can sign transactions. 1:07:55 So you can say, I'm going to deposit to this one address. 1:07:58 You can just say, I personally, this address will be my air conditioning fund or whatever. 1:08:05 And you can just make transactions that leave that address but can't be spent until next 1:08:11 month or three months from now or whatever using like analog time. 1:08:17 And then your counterparty will have to wait to broadcast those because they're not standard 1:08:24 or something. 1:08:25 But this type of stuff is really not – it's really not that smart, right? 1:08:29 They can just wait, and they can just invoice you, and you can just pay it like – 1:08:32 Right. 1:08:33 So recurring payments are not – it's just not groundbreaking. 1:08:38 There's more complicated stuff for things like smart contracts to tackle and other platforms. 1:08:44 Well, and so let's switch gears for a second. 1:08:48 In a minute, I want to ask you, you had some really cool – a really cool list of applied 1:08:53 predictions when it came to Truthcoin, smart contracts, and prediction markets. 1:08:59 But we were talking about how prediction markets work. 1:09:04 And of course, a big aspect of prediction markets is you want to make money. 1:09:10 Like you mentioned, nobody – everybody wants to have more money than they had before. 1:09:14 And part of that is doing speculative things on a prediction market. 1:09:22 But what are some of the less obvious benefits of a prediction market? 1:09:25 Basically, of course, anyone can make money getting a bet right, but what are some of 1:09:30 the, say, positive externalities, if you will, where the whole market or people maybe not 1:09:35 party to the transaction benefit? 1:09:39 Yeah. 1:09:40 So one beautiful thing is that not only is this sort of a win-win solution for the two 1:09:47 people who bet, people disagree on something. 1:09:51 They say one person says Hillary Clinton will be elected. 1:09:54 Another person says Hillary Clinton will not be elected. 1:09:57 And they can bet and maybe they both walk away feeling happier about the bet because 1:10:02 they both think that the other guy is a sucker. 1:10:06 But the beautiful thing is that you get this effect from – you basically get the price 1:10:11 system. 1:10:13 You get this objective data that anyone can use and it's reliable. 1:10:18 So if someone wants to just publish some report about we should do this or we should do that, 1:10:24 then someone else can publish a counter report. 1:10:26 So I guess to really boil it down, if you learn something – like let's say you work 1:10:32 really hard and you're like a scholar on something, whatever. 1:10:36 It could be anything. 1:10:37 I can't really relate to either one, but go ahead. 1:10:41 So you work really hard and you've learned X or whatever. 1:10:45 You still have all of your work really cut out for you. 1:10:49 It's all ahead of you still because unless what you learned is something that really 1:10:56 only affects you, which is not a lot of things, I like that. 1:11:00 If this is some important thing like for example, we should get rid of the minimum wage. 1:11:05 Let's say you learned you worked really hard and you risked embarrassment by exploring 1:11:11 this taboo issue and now you've learned this thing and you invested the time and you did 1:11:17 some reading and you read all the different points of view. 1:11:20 Now you think we should get rid of the minimum wage because it's only useful for helping 1:11:26 people in anti-competitive unions keep their jobs and it doesn't help the poor or anything 1:11:32 like that. 1:11:33 You've reached this view now. 1:11:35 You still have to convince everyone else. 1:11:38 One cool thing about these prices is that they ultimately settle on what could be regarded 1:11:45 as the right answer because the price will move for as long as people feel confidently 1:11:55 that it is wrong. 1:11:56 So when it stops moving, you're going to think, well, I guess no one feels that strongly about 1:12:00 changing it because the price is just what it is. 1:12:03 So since the prediction market will get the right answer about what we can expect in the 1:12:10 future, if you ask it a really cool question, you can get out an answer that even like an 1:12:18 answer that would normally be maybe censored or just for reasons of embarrassment or might 1:12:22 be actively censored and removed. 1:12:26 You can get a really cool answer to fall out and it will just be hanging there broadcasting 1:12:31 to everyone this answer. 1:12:33 So you can ask a prediction market a very interesting question like, if we elected Hillary 1:12:39 Clinton, what would the unemployment rate be? 1:12:42 And then you could say, if we elected whoever, I don't know, Jeb Bush or whatever it's going 1:12:47 to be, what would the unemployment rate be? 1:12:51 So you can look at both of those or to keep it simpler in this yes-no world, you could 1:12:56 say, if we elected Hillary Clinton, will the unemployment rate be below 5%? 1:13:01 And if we elected Jeb Bush, will the unemployment rate be below 5%? 1:13:06 And then you can just say, who is more likely to bring us this 5% number? 1:13:10 And then you don't have to do all this work or all this kind of psychologically biased 1:13:18 contaminated political reasoning and show up to conferences and things and political 1:13:24 conventions and rallies. 1:13:26 You can just kind of turn on your phone and you can just look at the relationship between 1:13:31 reality and the future and your choice today in the ballot that the person you choose to 1:13:41 cast your vote for. 1:13:42 And you can just say, well, I don't really care about any of this other stuff. 1:13:45 I don't really care about the person's name or their race or their gender or their political 1:13:50 party. 1:13:51 I really only care about getting unemployment down. 1:13:53 So I'm just going to vote based on that. 1:13:56 A good way to find crooked voting maybe. 1:13:59 Yeah, that's another thing is that right now, it wouldn't really matter, right, if the voting 1:14:04 were all rigged because the process is driven, the voting process is driven by… 1:14:09 Well, I hate to interrupt, but we're coming to a break. 1:14:11 Sorry, Paul. 1:14:12 Pick up that thought on the other side of the break. 1:14:14 We'll be right back with Paul Sztorc of Truth. 1:14:16 You're listening to the Logos Radio Network at logosradionetwork.com. 1:14:25 I've been walking a tightrope between fact and fiction. 1:14:29 Been wrestling with demons in small bottle prisons. 1:14:34 Been talking to sinners who claim to be Christian. 1:14:39 Been shouting at leaders who claim to be listening. 1:14:44 And the pendulum swings from the left to the right. 1:14:49 As momentum increases, the need for the fight. 1:14:54 Like a moment of blindness and a lifetime of sight. 1:14:59 And I am caught somewhere in the middle. 1:15:09 I saw a president lying to the needs of his people. 1:15:14 Saw a camel pass through the eye of a needle. 1:15:44 And go to the bitcoinbookstore.com where you can order over 50 books on Bitcoin through the Brave New Books sister website. 1:15:53 And we're talking to Paul Sztorc of Truthcoin. 1:16:00 Man, I got it right and then messed it up. 1:16:03 And you can go to Truthcoin.info to find out more about him, about Truthcoin, and see his latest blog articles. 1:16:11 And Paul, before we move on, I wanted to ask you something real quick. 1:16:16 Since you made a statement that, well, made this question occur to me. 1:16:21 You mentioned FundMises before. Do you at all subscribe to the Austrian school, or what's your take on it? 1:16:28 Well, my take on it is that I, you know, I try to be kind of as eclectic as possible. 1:16:36 And I don't try to join any group at all. 1:16:39 So that, and I very fervently believe in this non-group thing. 1:16:44 And I try to apply it to religion, politics, economics, and everything. 1:16:51 And I just try to only believe things that are true. 1:16:53 So I was really, really impressed with Peter Schiff's mortgage banker's speech. 1:16:58 And I think everyone should watch the speech he gave in 2016, I mean 2006, not 2016. 1:17:04 2006, if you're not familiar with that. 1:17:07 And he's obviously a big Austrian guy. 1:17:10 And the other things I have kind of impressed. 1:17:14 I guess if I had to pick one person, I would say the closest kind of economist to me is this guy Steve Keen. 1:17:26 Who is, he describes himself as a, I don't even know what he would even describe himself as. 1:17:32 I think it's like a post-Keynesian or something. 1:17:34 But it doesn't really matter because what he believes is so different from what everyone else believes. 1:17:39 And it's very similar to, so he's, Steve Keen is like this guy off of Minsky who was an economist. 1:17:48 It's kind of in the middle of the, more in the middle of the 1900s. 1:17:52 And so, but I really don't kind of subscribe to any group or another. 1:17:58 I'm very skeptical of all macroeconomics. 1:18:03 I love microeconomics and sort of profit maximizing and rational behavior and game theory and stuff like that. 1:18:11 But the macro stuff I'm safe assuming that really no one kind of knows. 1:18:17 And I think that you're very comfortable. 1:18:19 Another person would be like Nassim Taleb that I would be kind of very closely aligned with. 1:18:24 I would say that. 1:18:25 He's the author of The Black Swan. 1:18:27 The Black Swan, Fooled by Randomness, Antifragile. 1:18:30 So I think those people are kind of, it's just much safer to proceed as though none of these people really know what they're talking about at all. 1:18:40 And so I think one advantage that the Austrian school has is that there's no Austrians in charge. 1:18:47 So although they have a great track record, my guess would just be that if you put someone in charge, some other terrible thing would happen and then it would be. 1:18:56 So that's not to say anything against or in favor of kind of currently whatever neoclassical or whatever other stuff is going around. 1:19:06 Definitely I'm like a Milton Friedman guy. 1:19:10 But again, I try not to actually subscribe to any group, and that makes it kind of frustrating if I talk to anyone about anything. 1:19:17 Can I interest you in some Sports Illustrated magazine? 1:19:21 Yeah, same thing with sports, right? 1:19:23 So that's the whole thing about sports is that it sort of domesticates this instinct people have to join a team. 1:19:30 Yeah, the herd mentality. 1:19:31 And I respect your answer quite a bit. 1:19:34 People succumb to groupthink and group labeling, which can be not only counterproductive but can have people fall prey to all sorts of collectivist fallacies and other issues. 1:19:47 But I will say real quick, with the Austrian school, I think the beauty of it is it's not so much thinking of it as a group as a sort of consistent school of thought or consistent economic system. 1:20:00 And then also they're very anti-macro. 1:20:03 I mean I think a big part of the Austrian school is to show that macroeconomics as essentially developed by John Maynard Keynes into what it is today is not a valid way to look at the world. 1:20:17 But yeah, still, even someone like Minsky who is not part of the Austrian school, I read up a little bit on him in the past and decidedly not Austrian. 1:20:27 A lot of his supporters I think are Keynesian or at least non- or anti-Austrian. 1:20:32 But from what I read of his stuff, it's not inconsistent with what the Austrian school has to say. 1:20:37 I think his focus is just a little different and more on the financial side, financial mechanics rather than broader economic stuff. 1:20:44 But anyway… 1:20:45 Yeah, it is really cool. 1:20:47 The Minsky people are sort of like post-Keynesian, and that might lead you to believe that they were somehow affiliated with Keynesianism. 1:20:53 But they're really only kind of borrowing a few kind of like cycle things that there's a dynamic equilibrium, like an orbit, like a planet orbiting the sun. 1:21:05 It's not like just an equilibrium where things stand still. 1:21:09 It's just this cyclic thing, and they don't really borrow this. 1:21:14 But yeah, macro is like in a weird position. 1:21:17 There's a very cool – if anyone is interested in kind of like mainstream, more like math econ stuff, there's a cool video of Steve Keen on YouTube where he proves that the aggregate demand curve can take any shape. 1:21:35 So instead of being this well-behaved thing that you can do macroeconomics with, it's not a well-behaved thing at all. 1:21:42 So basically, he kind of just proves a huge gigantic – we could almost say like one half of like modern macroeconomics with this just tears this thing out. 1:21:55 And it's actually shocking how clear the mistake is and how clearly correct he is. 1:22:04 And so it's just – I'm more in the Nassim Taleb camp where we should really just be very mindful of the fact that there are lots of people who don't really know what's going on. 1:22:14 And they might think they do, and there are a lot of easy ways to get fooled by that type of thing. 1:22:21 At the same time, it's a shame to reject human – it's nice to be conservative in general. 1:22:28 So like with respect to the law, people like to not change anything that they don't need to change because you don't really know how we ended up here. 1:22:36 So that's kind of a similar concern where it's like until you totally understand why we have all these things, we probably shouldn't tear them all out. 1:22:44 But with macroeconomics in particular, it's just so complex and it's so different from microeconomics. 1:22:52 It's actually totally, totally different, and I think the focus of the Austrian school on micro is much better. 1:23:02 And particularly von Mises on micro is very wise in that you should just say – just focus on getting micro right and then just say who knows what's going on with macro. 1:23:13 Exactly, just remain agnostic about the macro. 1:23:16 Well, sorry to get us off track, but a great response and a whole – 1:23:20 Is that craft macro? 1:23:22 A whole discussion of its own. We've got about two minutes until break. 1:23:26 I do want to say rest in peace to Erwin Schiff, the father of Peter Schiff, who recently died handcuffed to a jail hospital bed in a very dishonorable way. 1:23:37 Not dishonorable because he's a bad man, but because he was a political prisoner of the United States federal government. 1:23:43 But let's switch gears. We've got a minute and a half left until the break, and we've got a full other segment. 1:23:48 But I want you to talk about some of the cool – how was it put? Applied predictions that you list on your website. 1:23:58 The indoctrination center where their child has been sent to be stripped of his individuality and turned into an obedient, soul-dead, conformist member of the American consumer culture. 1:24:07 Exactly. 1:24:09 Was that Erwin Schiff? 1:24:11 That was George Carlin. 1:24:13 George Carlin. Okay, yeah. 1:24:16 So we're probably going to have to talk about this on the other side of the break, but just to give everyone a heads up for when we return, you had some cool stuff about applied predictions that prediction markets and Truthcoin can do, such as ending a debate, detecting a lie, whistleblowing, policy advice, insurance, portfolio replication, derivatives. 1:24:40 And even recreation, and so I'm interested to hear what Paul Sztorc – I'm sorry, Sztorc. I keep wanting to add an F. I don't know why. I think because your name reminds me of a guest we had on previously. 1:24:52 But Paul Sztorc of Truthcoin and Truthcoin.info will be answering some stuff about that in our final segment here on The Crypto Show, and it's been a great discussion. 1:25:04 We're going to have to have him on again to talk more in depth about this and maybe about some other econ topics because it sounds interesting. 1:25:12 … defendant in a lawsuit? Win your case without an attorney with Jurist Dictionary, the affordable, easy-to-understand four-CD course that will show you how in 24 hours, step-by-step. 1:25:25 If you have a lawyer, know what your lawyer should be doing. If you don't have a lawyer, know what you should do for yourself. 1:25:32 Thousands have won with our step-by-step course, and now you can, too. Jurist Dictionary was created by a licensed attorney with 22 years of case-winning experience. 1:25:43 Even if you're not in a lawsuit, you can learn what everyone should understand about the principles and practices that control our American courts. 1:25:52 You'll receive our audio classroom, video seminar, tutorials, forms for civil cases, pro se tactics, and much more. 1:26:01 Please visit ruleoflawradio.com and click on the banner or call toll-free 866-LAW-EASY. 1:26:22 Thank you for watching. 1:26:52 Alright guys, welcome back to the final segment of The Crypto Show here on Logos Radio Network on this lovely October 21, 2015. 1:27:05 And we're speaking with Paul Sztorc of Truthcoin and Truthcoin.info. 1:27:11 It needs to be about 20% cooler. 1:27:14 Oh, it will be. It's already super cool. It's going to be super cool times, too. 1:27:19 Well, we're going to get some applied predictions, but actually, Paul – and I hate to waste our last segment's time on this, but I thought that was really cool what you just said to me off-air. 1:27:29 Real quick, tell our audience, speaking of macro and speaking of all of these sort of special interests when it comes to what school of thought prevails in economics and stuff, you were telling me about a test question at Yale in the econ department. 1:27:48 Go ahead with that. 1:27:49 Well, I don't want to get anyone in trouble or anything, but there's this test question at Yale. 1:27:55 Don't say it. I'm sorry. If you don't feel comfortable saying it, you don't have to do it. 1:27:58 No, it's nothing like that. It's just for anyone to over-interpret it. 1:28:02 Fair enough. 1:28:03 It's kind of funny. There's a question that asks you to plot – or not plot, but you're supposed to seek out and write down the average real GDP growth for the United States before and after the Federal Reserve was introduced, so before 1913 and after. 1:28:21 If you exclude – so the question was clearly written before 2008 and has endured ever since, and so the question sort of has this – not like an edit, but you can kind of tell that the sentence has been – something has kind of been inserted. 1:28:36 So what the question really asks you to do is before the year 1913 and 1913 to the year 2008, and it asks you to stop at that year as if the remaining years are unrepresentative for some reason. 1:28:51 So if you do that and you answer the question as written, you get the answer that real GDP is higher and more stable in the period with the Federal Reserve. 1:29:03 But if you drag your Excel spreadsheet formula down those extra couple of years to include all of them, you get maybe a different answer, and maybe viewers would be interested in doing it themselves for fun on their own computer or something. 1:29:18 Yeah, and apparently before 2008, it simply said up to the present day because before the financial collapse, it was still in their best interest to just keep it open-ended like that. 1:29:30 But after the financial collapse, it wasn't conducive to their – well, to what they wanted I guess it to say, and so it sounds kind of like cherry-picking a little bit. 1:29:41 A couple of years, maybe 2008 and 2009, were a little unrepresentative, but then you'd think that it would have caught up, and then people would just return it to its open-ended thing or something. 1:29:54 So there's a lot to be said about that, and the guy who wrote that test was a very smart guy and a very nice guy, and it's kind of hard to totally square that circle. 1:30:05 Well, for sure. I'm not going to pretend to know his thoughts, but it's definitely an interesting situation. Thanks for sharing that. 1:30:12 But let's get back to some more truth, coin, and prediction market stuff. 1:30:17 So you talked about applied predictions, and as I listed some of them, ending a debate, detecting a lie, whistleblowing, portfolio replication. 1:30:25 I guess get into some of that, and we've probably already lightly touched on it in just your general explanation, but get into some of that and how it works. 1:30:32 So you don't need to stick to a single yes or no question with prediction markets. 1:30:40 You can ask a question like, will Hillary Clinton be elected, and then you can learn how likely is it that she will be elected anyway, 70%, 40%. 1:30:50 But you can go so much further than that. You can bet against the Bitcoin-US dollar exchange rate, so you can bet that the exchange rate will go down. 1:31:02 You can bet against the exchange rate in this simple two-dimensional thing, and then you end up – the share that you get in return is basically equivalent to a US dollar, except it's in the crypto world. 1:31:17 So no matter what happens to the exchange rate in the future, you'll be able to redeem that share. 1:31:22 If the Bitcoin price collapses, you'll get more Bitcoin when you redeem this thing because your bet will have worked, and the math will work out such that you end up with the same amount of dollars. 1:31:32 So you kind of end up in dollar land just with this bet that you've taken against the Bitcoin exchange rate. 1:31:39 You can also bet against other things that maybe you want to – you're worried about personally. 1:31:44 If you're worried about some kind of event happening, which you could even double-use the election like that or something. 1:31:53 You could say if you're really worried that Hillary Clinton will be elected, you could bet that she would, and then you would at least get some money after she's inevitably elected president. 1:32:02 But you could also do like an earthquake or something terrible like that. 1:32:07 You can also – instead of betting against the US dollar exchange rate for Bitcoin, you can bet on basically anything. 1:32:15 You could bet on the Dow Jones Industrial Average or the price of gold, and you can kind of transform this thing into kind of a little micro Wall Street where you can just get a couple little things that you want to be kind of invested in, and then you can kind of do all this stuff. 1:32:31 You can have an entire financial portfolio without really leaving your computer or without really leaving this crypto censorship-resistant peer-to-peer world. 1:32:42 So you can do quite a few things with these – prediction markets were originally called a different name. 1:32:50 They were called event derivatives. 1:32:52 So they're really just these financial derivatives based on events, but the events can be anything. 1:32:56 They can be financial events themselves. 1:32:58 They can be gold hits a certain price or whatever priced in yen hits a certain price or whoever defaults on their bonds, and it can be anything. 1:33:07 So you can have this tiny little financial world that kind of exists in this blockchain world. 1:33:15 I did some things behind the scenes when you set it up so that to make sort of things like liquidity and finding counterparties to be very, very easy technically and circumvent a lot of kind of order book Wall Street stuff that Wall Street doesn't fix on purpose because a lot of people's jobs are to maintain the old legacy system. 1:33:42 The old system. 1:33:43 Right, so there's a lot of easy stuff that Wall Streets wanted to rewrite and update, but they just can't. 1:33:49 But obviously, Zafix stops open source software from doing that, so it's the perfect time. 1:33:57 Absolutely, and real quick, a quick interruption for our Let's Talk Bitcoin listeners. 1:34:02 The magic word is FreeRoss.org. 1:34:05 That is FreeRoss.org. 1:34:07 That's the magic word. 1:34:09 All right, well, yeah, and so I think that's interesting. 1:34:13 You bring up a good point, which is that financial derivatives or event derivatives and just that whole class or system of financial instruments are sort of really a specific subset of a more generic class of, well, as you said, event derivatives. 1:34:29 And it's only because for historical and legal and maybe cultural reasons that only certain events were covered in financial instruments or in prediction markets. 1:34:41 And so it's a kind of mind-expanding way to look at things in that a big purpose of these markets is to create predictability and stability when it comes to financial and also other matters. 1:34:57 And so I guess when you say stuff like portfolio replication, you kind of touched upon it. 1:35:01 You can basically create like an index fund for, say, the S&P 500 if you wanted to, like create your own index fund. 1:35:08 Is that about right? 1:35:09 Yeah, exactly. 1:35:10 As long as the real financial world still exists somewhere, you don't need – it can be a one-way street of information. 1:35:18 Like someone can just look at what the Dow Jones Industrial Average or the S&P 500 is on a certain day, and that information can travel one way into the block chain. 1:35:31 And then you basically have copied the entire thing even though you're not literally buying these index funds. 1:35:38 You're not literally buying these companies or investing in them. 1:35:41 As far as you're concerned, it's the exact same experience. 1:35:45 And actually, if you bid these things up and there's at least one guy in between who can do arbitrage, the money will still actually flow into these – it will still be invested in these funds and ultimately in these businesses. 1:36:00 It's kind of very interesting as long as there's one guy. 1:36:04 But even without that one guy, you can still – even if no one is doing arbitrage, you can actually still almost copy, make a tiny little copy of Wall Street on the block chain. 1:36:16 It just looks at what Wall Street is doing and just settles everyone up. 1:36:20 People bet out of sight, sort of like a bucket shop or something. 1:36:24 Yeah, sort of a parallel financial world that can be in isolation or it may not be, like you said, depending on if there's sort of intermediaries looking to do arbitrage like you said. 1:36:38 And that could feed back even into the regular financial system, and that's the beauty of it. 1:36:44 And you talk about insurance, so you can create your own, say, life insurance or car insurance and do this kind of separate from the traditional financial system. 1:36:53 Yeah, these things really have a huge benefit where there's scale. 1:36:57 So, like electing the next president, like president versus unemployment rate as I mentioned before. 1:37:05 But something like when will the Federal Reserve raise interest rates, like talk about insuring against that. 1:37:12 Like that would be something that lots of people would be interested in doing. 1:37:17 Oh, very interested in doing it. 1:37:19 That would be a cool thing to watch millions of dollars being wagered on. 1:37:24 Absolutely. Well, we've got a minute and a half left, and it's been a great discussion. 1:37:28 I really want to have you back because you're a fascinating guy. 1:37:31 Truthcoin is a fascinating platform, and of course just prediction markets are a fascinating topic. 1:37:37 Will Truthcoin be offering its own marketplace or exchange for prediction markets? 1:37:43 So, Truthcoin is like a protocol, sort of like Bitcoin, and thanks to the invention of sidechains, which lots to talk about there. 1:37:53 But this protocol can use Bitcoin as its currency. 1:37:57 So both of them, the Bitcoin protocol and this Truthcoin protocol will both use the Bitcoin currency. 1:38:04 So this would just be a piece of software that you download, and the protocol itself includes a way for you to add these questions in and then build the questions into markets. 1:38:13 So all the markets will be there, and if you already own Bitcoin, you'll just be able to sidechain it over and then use it to participate and buy and sell. 1:38:24 Well, that's pretty neat. Well, Paul Sztorc of Truthcoin. Any final thoughts, Paul, in the 30 seconds we have? 1:38:31 Final thoughts. I guess one thing I would say is that a lot of these rival 2.0 projects, Bitcoin 2.0 projects, have kind of just remained very skeptical and insist that people release software and release documentation. 1:38:50 Well, if you're skeptical of them too, go to Truthcoin.info. Thank you, Paul Sztorc of Truthcoin. We hope to have you back on soon.