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It's 11.59 at Radio Free America, and this is Uncle Sam with music and the truth
until dawn.

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Right now, I've got a few words for some of our brothers and sisters in the occupied
zone.

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The chair is against the wall. The chair is against the wall.

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John has a long mustache. John has a long mustache.

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It's 12 o'clock, Americans, another day closer to victory.

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And for all of you out there on or behind the lines, this is your song.

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Good evening, ladies and gentlemen, and welcome to the...

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I have a joke for you.

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Okay.

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The government in this town is excellent and uses your tax dollars inefficiently.

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Ho ho ho ho ho.

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Pay attention.

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Pay attention.

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Pay attention.

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I didn't see you coming.

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I didn't see you coming.

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At the moment, all you can do is use your food.

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At the moment, all you can do is use your food.

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We all know this, I don't see why anybody would like to use Bitcoin.

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We all know this, I don't see why anybody would like to use Bitcoin.

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Bitcoin is immune from attack almost completely.

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With Bitcoin, you actually gain far more from using the computer power to generate
Bitcoin.

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There's a system approaching perfection.

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It's in time for it to disappear.

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There's a system approaching perfection.

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It's in time for it to disappear.

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We'll walk deeper into the belly of the beast.

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It means I'm able to further limit reckless government spending.

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I mean, I have so many ideas.

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Some are simple, like take down traffic lights and eliminate the post office.

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The bigger ones will be tougher to fight.

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Bring all of this crumbling to the ground.

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Good evening, ladies and gentlemen.

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This is The Crypto Show.

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A show dedicated to understanding the promise of currency, technology, and anarchy
in the pursuit of a free society.

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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.

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A world sketched by the beauty of the human artist.

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Because each and every one of you listening right now is that artist.

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So, for the next two hours, let go of your most sacred system of thought and
entertain the possibility that maybe, just maybe,

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everything we've been told about currency, technology, and yes, even that dirty,
dirty little word, anarchy,

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is only one part of the never-expanding, never-possible, complex universe of ideas,
one that we simply refuse to explore.

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So, what do you say, listeners?

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Let's do some universe exploring tonight and have some fun while we do it.

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This is a celebration.

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Celebrate good times, come on!

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But really, Danny, what's there to celebrate in this deep, dark, terrible world of
ours?

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I guess all the good stuff that they got right in Back to the Future.

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I know! And speaking of which, happy Back to the Future Day on this lovely October
21st, 2015.

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Exactly 30 years into the future from when Marty McFly and Doc Brown entered time.

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And what did they get right, Danny?

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I don't know, you tell me.

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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.

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And it has to be on a particular kind of surface.

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But they kind of got that right, although it's not mass-produced and it's limited in
its ability.

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Biff Tannen is running for president, a.k.a. Trump, Donald Trump.

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So that's kind of what they got right.

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And both of them built their fortunes on casinos.

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So, I don't know, Back to the Future may be more prescient than we give it credit
for.

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But only time will tell.

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Real quick, there's a great video.

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Type into YouTube, Back to the Future 9-11 in the walk.

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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.

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As well as, there's some other cool aspects he gets into both in that short video as
well as others.

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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.

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Anyway, but tonight it's more about Bitcoin.

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Tonight we're having two guests.

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A returning guest, Connie Gallippi of BitGive.

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BitGive is a Bitcoin charitable foundation.

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And we're very supportive of their efforts.

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And it sounds like they have some recent efforts we're going to talk about.

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And we also have Paul Sztorc of Truthcoin.

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And that sounds like an interesting little project.

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Truthcoin in prediction markets.

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And that should be a lot of fun.

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And I guess now we're going to quickly roll through some announcements that Danny
has so generously pre-recorded.

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Our sponsors as always, Brave New Books, 1904 Guadalupe.

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For all your suppressed information and premium health food products.

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Such as tangy tangerine and all of the longevity lime.

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As well as Burke's Superfood.

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Also, Hill Country Home Improvements and Logos Radio Network.

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Without whom this show would not be possible.

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If you're listening in on one of the podcasts available at LogosRadioNetwork.com.

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Let's Talk Bitcoin.

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LRN.FM or Bitcoin Talk Radio.

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Those are brought to you by RuleOfLaw.com.

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So if you have legal issues or you just want to know what your lawyer should be
doing.

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Check out RuleOfLawRadio.com.

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If you're listening to one of the podcast versions.

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Be sure to follow us on Twitter and Facebook.

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So you'll know who our next guests are.

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That way you can participate live.

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Through our call in number at 512-646-1984.

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On Wednesdays and Sunday nights.

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8 to 10 p.m. Central Standard Time.

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All of our sponsors have links or discounts at thecryptoshow.com.

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So just click through from there to find the best deals.

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And to keep up with upcoming events.

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That was pretty good.

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I mean I think I do it better when I ramble on for 15 minutes.

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All about our sponsors and upcoming events.

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That's acceptable for now, Danny.

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I like to give you the floor a little bit here and there.

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That was really good actually.

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It makes it a lot easier.

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It's quick.

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It's clear.

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And stays on point.

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And if you want to know additional updates with Brave New Books.

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Of course, go to BraveNewBookstore.com.

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And check out TheBitcoinBookstore.com.

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Where you have I think over 50 bitcoin books available.

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Through Brave New Books' sister website.

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All right.

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Well, I think we're going to call Connie Gallippi here in just a moment.

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She's supposed to call us.

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She's supposed to call us.

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That's pretty exciting.

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In the meantime, real quick.

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I'm going to talk about a book that I just borrowed from somebody.

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It's called Classified Woman.

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Now this book has been around for a while.

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And I was delighted to find out that this acquaintance is into a lot of the same
stuff that I'm into.

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Or we're into here in the show.

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Oh, good for you.

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Oh, well, thank you.

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So Classified Woman is about former FBI translator Sybil Edmonds.

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Who is the most gagged woman in history.

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Legally speaking.

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And it's the Classified Woman, a memoir.

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The Sybil Edmonds story.

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And we'll talk more about that later in the show.

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I'm excited to be able to read that.

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But in the meantime, our first guest is on the line.

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Connie Gallippi of BitGive.

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Connie, are you there?

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Hello.

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There she is.

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Hey, Connie, how are you?

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I am well.

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How are you?

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We're doing pretty good.

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A little tired, but we're doing pretty good.

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Happy to be here with you on the Crypto Show.

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So for those who don't know, real quick, I'm going to just give a brief bio of
Connie.

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Ms. Gallippi founded BitGive in mid-2013.

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Taking an early role in Bitcoin philanthropy and founding the first Bitcoin 501c3
nonprofit.

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Through her work with BitGive, Connie has built a positive philanthropic
representative foundation for the Bitcoin industry.

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Bridging the gap between an innovative technology and its practical applications for
nonprofits and humanitarian work in the developing world.

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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.

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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.

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Most notably, her work included the development and implementation of multi-million
dollar programs in public funding for the environmental sector.

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She remains involved as a board member for California Urban Forest Council.

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Well, Connie, glad to have you back on the Crypto Show.

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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.

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Okay, great. Well, first of all, thank you for having me on, and that's quite an
introduction.

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Straight off of your website.

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Yeah, well, thank you. So, as you mentioned, BitGive is the first
government-recognized nonprofit in Bitcoin.

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So, we've been around since 2013 and working hard to leverage Bitcoin and blockchain
tech for nonprofits and charitable organizations.

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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.

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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.

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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,

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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.

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But in the third world, it's not quite the same.

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And introducing the third world, not just to charitable giving in Bitcoin, but
introducing them to Bitcoin technology is so important, too.

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Exactly. Yeah.

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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.

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There's many, many challenges in front of folks that are developing an emerging
world to even have those basic things.

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So that's why we're focused for now.

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Yeah, exactly. A lot of stuff we take for granted.

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Well, I know another focus you guys are having currently is you've got a special
fundraiser going with Cheap Air, I believe.

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Go ahead and tell us about that.

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Yes, we do.

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So it's just a few more days that are left and as running until the 24th.

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So I believe that's Saturday.

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And basically what we're doing is Cheap Air for every Bitcoin booking that is made
is donating five dollars to BitGive.

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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.

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That's pretty awesome. What a great fundraiser.

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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.

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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.

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We're coming to break. So stay tuned to The Crypto Show and we'll be right back with
Connie Gallippi. Stay tuned.

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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.

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That's BitcoinTalkRadio.com or just find them on the TuneIn app.

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You are listening to the Logos Radio Network.

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Logos Radio Network.com.

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This is what happens when you call the cops.

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Say what?

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This is what happens when you call the cops.

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Come on.

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This is what happens when you call the cops.

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You get your rights violated or you all get shot.

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Pow.

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This is what happens when you call the cops.

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Pow.

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This is what happens when you call the cops.

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What?

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This is what happens when you call the cops.

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You get your rights violated or you all get shot.

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Pow.

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I'm sick of people being victimized by criminal cops.

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Psychopathic predators terrorizing neighborhood blocks.

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Equipped with pepper spray, mace, cuffs, tasers, and glocks.

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They like serial killers acting out subliminal thoughts.

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Forget what you taught.

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These cops have got a license to kill.

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Witness intimidation means that they can use it at will.

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Code of silence means that the pigs will never let out a squeal.

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And if they go to court, they know the judge will make them a deal for real.

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That's why they stopping me.

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Locking me up and stopping me.

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Confiscating my property.

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Talking in my demography.

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Making the poor commodities.

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Profiting off of poverty.

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Enforcing policies.

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Supporting prison economies.

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Yeah.

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No one makes money when the violence stops.

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Hating brutality.

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It's the way to make money.

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All right, guys.

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Welcome back to the Crypto Show here on this lovely Back to the Future Day,
Wednesday,

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October 21st, 2015, here on Logos Radio Network, brought to you as always by our
sponsors,

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Hill Country Home Improvements and Brave New Books.

224
00:15:36,000 --> 00:15:39,000
And we're talking with Connie Gallippi of BitGive.

225
00:15:39,000 --> 00:15:44,000
And she is currently involved in a cool fundraiser with CheapAir.

226
00:15:44,000 --> 00:15:51,000
If you don't know what CheapAir is, it's a website that can get you, well, cheap
airline tickets, and they accept bitcoin.

227
00:15:51,000 --> 00:15:57,000
And we're probably using them for our conference in San Diego that's coming up next
month.

228
00:15:58,000 --> 00:15:59,000
Actually, December.

229
00:15:59,000 --> 00:16:02,000
December 14th through 16th in San Diego.

230
00:16:02,000 --> 00:16:05,000
December 14th through 16th, which we're probably going to attend.

231
00:16:05,000 --> 00:16:08,000
So we're going to contribute to that fundraiser.

232
00:16:08,000 --> 00:16:11,000
And they're doing a special thing with BitGive.

233
00:16:11,000 --> 00:16:18,000
And in case you are just tuning in, Connie, go ahead and tell us again about that
fundraiser.

234
00:16:20,000 --> 00:16:21,000
Sure.

235
00:16:21,000 --> 00:16:26,000
So we're working with CheapAir through the 24th of October, which is this Saturday.

236
00:16:26,000 --> 00:16:34,000
And for every booking that's placed and paid in bitcoin, they will donate $5 to
BitGive.

237
00:16:34,000 --> 00:16:36,000
So we're very excited about that.

238
00:16:36,000 --> 00:16:49,000
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.

239
00:16:49,000 --> 00:16:52,000
Not only their flight, but a $5 donation to BitGive.

240
00:16:53,000 --> 00:16:54,000
And that's really cool.

241
00:16:54,000 --> 00:16:55,000
And you're absolutely right.

242
00:16:55,000 --> 00:16:57,000
It's the perfect time of year.

243
00:16:57,000 --> 00:16:58,000
It's the holidays.

244
00:16:58,000 --> 00:16:59,000
We still have Halloween.

245
00:16:59,000 --> 00:17:04,000
We still have Thanksgiving and Christmas and anything in between.

246
00:17:04,000 --> 00:17:06,000
And why not?

247
00:17:06,000 --> 00:17:15,000
I mean, I always encourage people to give even if it means actually directly giving
to, say, bitcoin out of their own pocket.

248
00:17:15,000 --> 00:17:18,000
But the beauty of this is you can give without giving.

249
00:17:18,000 --> 00:17:21,000
In other words, you don't actually – it doesn't come out of your pocket.

250
00:17:21,000 --> 00:17:26,000
Cheap Air is generous enough to donate $5 worth of bitcoin.

251
00:17:26,000 --> 00:17:28,000
And so you don't have to spend anything extra.

252
00:17:28,000 --> 00:17:39,000
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.

253
00:17:39,000 --> 00:17:43,000
It's not like, oh, darn, if I want to help out, I got to buy a ticket.

254
00:17:43,000 --> 00:17:45,000
You're just doing what you're going to do naturally.

255
00:17:46,000 --> 00:17:57,000
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.

256
00:17:57,000 --> 00:17:59,000
And I think that's really cool.

257
00:17:59,000 --> 00:18:11,000
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?

258
00:18:11,000 --> 00:18:14,000
Yeah, I think definitely.

259
00:18:14,000 --> 00:18:23,000
I mean we've had other – we have other integrations and things like that which have
similar benefits to, say, a consumer.

260
00:18:23,000 --> 00:18:27,000
But this is the first time that we've done really a promo like this.

261
00:18:27,000 --> 00:18:29,000
So it's pretty exciting.

262
00:18:29,000 --> 00:18:30,000
That is pretty exciting.

263
00:18:30,000 --> 00:18:42,000
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?

264
00:18:43,000 --> 00:18:45,000
Yes, absolutely.

265
00:18:45,000 --> 00:18:48,000
So we have a few.

266
00:18:48,000 --> 00:18:55,000
One is really easy and quick, which is to redirect tips on ChangeTips.

267
00:18:55,000 --> 00:19:05,000
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.

268
00:19:05,000 --> 00:19:08,000
And BitGive is at the top of the list.

269
00:19:08,000 --> 00:19:14,000
We help them actually spearhead the whole redirect – tip redirect integration.

270
00:19:14,000 --> 00:19:15,000
That's really cool.

271
00:19:15,000 --> 00:19:16,000
We love ChangeTips.

272
00:19:16,000 --> 00:19:19,000
We actually do that with Freeross.org.

273
00:19:19,000 --> 00:19:22,000
In fact, we were the ones that got it added.

274
00:19:22,000 --> 00:19:23,000
Awesome.

275
00:19:23,000 --> 00:19:24,000
There you go.

276
00:19:24,000 --> 00:19:26,000
That's perfect.

277
00:19:26,000 --> 00:19:28,000
So yeah, so that's a great easy thing.

278
00:19:28,000 --> 00:19:46,000
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.

279
00:19:46,000 --> 00:19:49,000
So Purse is a platform for that.

280
00:19:49,000 --> 00:19:55,000
It basically allows you to shop on Amazon but pay in Bitcoin, and you can save money
by doing that.

281
00:19:56,000 --> 00:20:05,000
And what we've done is a partnership with them that integrates Amazon Smile, which
is Amazon's program to support charities and nonprofits.

282
00:20:05,000 --> 00:20:14,000
So you can sign up on Amazon to support your favorite charity, which you can also do
for BitGive.

283
00:20:15,000 --> 00:20:26,000
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.

284
00:20:26,000 --> 00:20:35,000
So the program with Amazon Smile is 0.5% of the purchase price is donated to your
favorite charity.

285
00:20:35,000 --> 00:20:40,000
And that's also not – it's not out of the pocket of the consumer.

286
00:20:40,000 --> 00:20:42,000
It's Amazon donating it.

287
00:20:42,000 --> 00:20:54,000
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.

288
00:20:54,000 --> 00:21:02,000
And GEM is basically making those donations to BitGive on behalf of the consumers.

289
00:21:03,000 --> 00:21:04,000
That's really neat.

290
00:21:04,000 --> 00:21:20,000
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.

291
00:21:20,000 --> 00:21:24,000
But the beauty of something like this is that they're not at odds.

292
00:21:24,000 --> 00:21:38,000
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.

293
00:21:38,000 --> 00:21:40,000
In fact, we're an affiliate too.

294
00:21:40,000 --> 00:21:46,000
And so it's a great way again to save money while helping out a great cause, and
that's so cool.

295
00:21:47,000 --> 00:21:50,000
So we're also a Purse affiliate.

296
00:21:50,000 --> 00:21:55,000
Can we add something like that to our affiliation with this charitable link or what?

297
00:21:57,000 --> 00:21:58,000
Probably.

298
00:21:58,000 --> 00:21:59,000
I don't know.

299
00:21:59,000 --> 00:22:00,000
We'll have to talk about that.

300
00:22:00,000 --> 00:22:03,000
I don't know what the affiliate program is like.

301
00:22:03,000 --> 00:22:16,000
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.

302
00:22:17,000 --> 00:22:20,000
But it's no money out of the consumer's pocket.

303
00:22:20,000 --> 00:22:24,000
So you just say, yes, I want to do that, and then Jim actually makes the donation.

304
00:22:25,000 --> 00:22:33,000
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.

305
00:22:33,000 --> 00:22:35,000
We'll figure out a way to make that happen.

306
00:22:35,000 --> 00:22:38,000
What does Jim do, and how can people participate with Jim?

307
00:22:40,000 --> 00:22:44,000
So Jim is an awesome new startup in Bitcoin.

308
00:22:44,000 --> 00:22:47,000
They're based out of Los Angeles.

309
00:22:48,000 --> 00:22:57,000
And basically, they have a really interesting technology that makes using Bitcoin
really easy, which we all know Bitcoin isn't always that easy.

310
00:22:57,000 --> 00:23:06,000
And we could really improve on how our public interface is to help with mainstream
adoption and onboarding.

311
00:23:07,000 --> 00:23:09,000
And Jim's done a really great job with that.

312
00:23:10,000 --> 00:23:15,000
So you'll have to look them up and look more into the details of what they're all
about.

313
00:23:15,000 --> 00:23:18,000
But we're really, really excited to be working with them.

314
00:23:18,000 --> 00:23:29,000
And they're wonderful people, really supportive of BitGive, and extremely supportive
of the Bitcoin industry and building community.

315
00:23:29,000 --> 00:23:41,000
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.

316
00:23:41,000 --> 00:23:47,000
So Jim is one of those, and we're really proud to be partnering with them.

317
00:23:48,000 --> 00:23:49,000
Well, that's really awesome.

318
00:23:49,000 --> 00:23:54,000
And it's very encouraging that the space is flourishing so much.

319
00:23:54,000 --> 00:24:02,000
Not just the Bitcoin space, but the charitable aspects of Bitcoin and making all of
these things possible.

320
00:24:03,000 --> 00:24:11,000
And bringing Bitcoin to not just philanthropists, but to the needy and people in the
underdeveloped world.

321
00:24:12,000 --> 00:24:14,000
Well, we've got about a minute left, Connie.

322
00:24:15,000 --> 00:24:18,000
Should we have her come over on the other side for a minute?

323
00:24:18,000 --> 00:24:19,000
Yeah.

324
00:24:19,000 --> 00:24:20,000
To wrap things up?

325
00:24:20,000 --> 00:24:23,000
Yeah, we'll bring Paul on and he can be standby.

326
00:24:23,000 --> 00:24:24,000
Okay, cool.

327
00:24:25,000 --> 00:24:33,000
We are talking with Connie Gallippi of BitGive, one of the premier and first and
biggest...

328
00:24:34,344 --> 00:24:37,344
Bitcoin charitable foundation. And she's been a guest on the show before.

329
00:24:37,344 --> 00:24:44,344
It's cool to see progress over time of something like BitGive as Connie comes back
to the show.

330
00:24:44,344 --> 00:24:47,344
And we're really excited about their cheap air fundraiser.

331
00:24:47,344 --> 00:24:55,344
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.

332
00:24:56,344 --> 00:25:04,344
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.

333
00:25:04,344 --> 00:25:05,344
Not that there's anything wrong with that.

334
00:25:05,344 --> 00:25:09,344
Not that there's anything wrong with it at all. We'll be right back with Connie
Gallippi of BitGive. Stay tuned.

335
00:25:09,344 --> 00:25:15,344
Join the crypto show December 14th through 16th in sunny San Diego, California for
InsideBitcoins.

336
00:25:16,344 --> 00:25:26,344
With some of the top names in Bitcoin on the roster, check out the details at
InsideBitcoins.com slash San-Diego-2015.

337
00:25:26,344 --> 00:25:30,344
Or just click through on the banner ad at thecryptoshow.com.

338
00:25:30,344 --> 00:25:36,344
That's December 14th through 16th InsideBitcoins in San Diego. See you there.

339
00:25:46,344 --> 00:25:58,344
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.

340
00:25:58,344 --> 00:26:04,344
What's your plan for tomorrow? Are you a leader or will you follow? Are you a
fighter?

341
00:26:04,344 --> 00:26:09,344
I'll tell you what your plan for tomorrow is. Your plan for tomorrow is to go to
cheapair.com.

342
00:26:10,344 --> 00:26:17,344
Get your tickets to go visit your family for Christmas and $5 from that that you
don't pay.

343
00:26:17,344 --> 00:26:24,344
CheapAir pays it, so you're not getting an extra cost added on to your airfare and
you're getting discounted airfare at that.

344
00:26:24,344 --> 00:26:31,344
So it's a double plus, but $5 of that in Bitcoin. We'll go to BitGive, the Bitcoin
Charitable Foundation.

345
00:26:31,344 --> 00:26:38,344
And then after that, because it is Christmas and Christmas is about gift giving,
you're going to go to Purse.io.

346
00:26:38,344 --> 00:26:42,344
Or actually, Connie, if people want... That's what she said.

347
00:26:42,344 --> 00:26:53,344
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.

348
00:26:53,344 --> 00:26:59,344
And Connie, quickly, how do people use the Purse.io in order to donate to BitGive?

349
00:26:59,344 --> 00:27:02,344
Do they go to the BitGive website or what do they have to do?

350
00:27:02,344 --> 00:27:08,344
No, it's actually perfectly integrated with the Purse platform.

351
00:27:08,344 --> 00:27:16,344
And now, actually, they have it integrated with their new instance, which is a much
easier way of using Purse.

352
00:27:16,344 --> 00:27:25,344
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.

353
00:27:26,344 --> 00:27:36,344
And if it's an Amazon Smile product, which basically means that the vendor has
agreed to participate in the Smile program,

354
00:27:36,344 --> 00:27:39,344
all you have to do is click on a button when you check out.

355
00:27:39,344 --> 00:27:42,344
It says, Purse 1% Initiative.

356
00:27:42,344 --> 00:27:54,344
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.

357
00:27:55,344 --> 00:28:00,344
And we call it the 1% Initiative because Amazon Smile also does the 0.5%.

358
00:28:00,344 --> 00:28:07,344
So together, JEM is matching that, and together, it's a 1% donation of the purchase
price.

359
00:28:07,344 --> 00:28:10,344
Well, that's pretty awesome, and that adds up. It really does.

360
00:28:10,344 --> 00:28:11,344
And just real quick, maybe...

361
00:28:11,344 --> 00:28:14,344
So that's the good 1%, not that evil 1%, right?

362
00:28:14,344 --> 00:28:15,344
Da-dun. Rim shot.

363
00:28:15,344 --> 00:28:17,344
Yes.

364
00:28:17,344 --> 00:28:23,344
Well, hey, Connie, and I hate to make you repeat yourself, although it's good for
our listeners just to drive it home.

365
00:28:23,344 --> 00:28:24,344
I don't know if you mentioned...

366
00:28:24,344 --> 00:28:27,344
Yeah, because our listeners smoke a lot of weed, and they can't remember stuff.

367
00:28:27,344 --> 00:28:28,344
No, I'm just kidding.

368
00:28:28,344 --> 00:28:31,344
True story. I didn't want to say it on air, but it's true.

369
00:28:31,344 --> 00:28:34,344
But with Cheap Air, how does that work?

370
00:28:34,344 --> 00:28:40,344
Is there a code for Cheap Air, or how do people get to donate to BitGive?

371
00:28:40,344 --> 00:28:42,344
Or is it anybody who donates?

372
00:28:42,344 --> 00:28:45,344
No, it's all purchases done with Bitcoin.

373
00:28:45,344 --> 00:28:47,344
All purchases done with Bitcoin, okay.

374
00:28:47,344 --> 00:28:48,344
Yes.

375
00:28:48,344 --> 00:28:49,344
That's so awesome.

376
00:28:49,344 --> 00:28:50,344
There's no code or anything.

377
00:28:50,344 --> 00:28:54,344
It's just if you pay in Bitcoin, they will donate $5 to BitGive.

378
00:28:54,344 --> 00:28:56,344
And it runs through this package.

379
00:28:56,344 --> 00:29:01,344
Which is, for them, is really only 2% because they're saving 3% by not using a
credit card.

380
00:29:01,344 --> 00:29:03,344
That's a good point.

381
00:29:03,344 --> 00:29:04,344
Exactly.

382
00:29:04,344 --> 00:29:07,344
That's actually a really good way of looking at it.

383
00:29:07,344 --> 00:29:09,344
And actually, it's even less because it's just $5.

384
00:29:09,344 --> 00:29:13,344
So if you get like a $500 plane ticket, it's only 1% for them, so pretty cool.

385
00:29:14,344 --> 00:29:17,344
So guys, go to Cheap Air.

386
00:29:17,344 --> 00:29:19,344
Buy in Bitcoin.

387
00:29:19,344 --> 00:29:21,344
You'll get money donated to BitGive.

388
00:29:21,344 --> 00:29:27,344
Use Purse.io, Amazon Smile, and Jim, and you'll donate up to 1% to BitGive.

389
00:29:27,344 --> 00:29:28,344
And then you know what?

390
00:29:28,344 --> 00:29:30,344
It is the season of giving.

391
00:29:30,344 --> 00:29:34,344
Then go to BitGiveFoundation.org, and you can donate directly to BitGive as well.

392
00:29:34,344 --> 00:29:35,344
The trifecta.

393
00:29:35,344 --> 00:29:38,344
Help out people throughout the world using Bitcoin.

394
00:29:38,344 --> 00:29:42,344
Because Bitcoin is more than just a new currency and technology.

395
00:29:42,344 --> 00:29:48,344
It really is a force for good despite the propaganda the government and other
organizations put out.

396
00:29:48,344 --> 00:29:54,344
Well, Connie, what other projects have you guys been working on lately that you'd
like to talk about?

397
00:29:56,344 --> 00:29:59,344
I have two things I wanted to mention.

398
00:29:59,344 --> 00:30:06,344
So one is our charitable campaign that we've been focused on for a while now is with
Medic Mobile.

399
00:30:07,344 --> 00:30:18,344
And they provide mobile phones to health workers in the developing world using
open-source tech and mobile tech to improve health care.

400
00:30:18,344 --> 00:30:20,344
So we're supporting them.

401
00:30:20,344 --> 00:30:30,344
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.

402
00:30:30,344 --> 00:30:35,344
It's a pretty powerful, easy way to really, really make a huge difference.

403
00:30:35,344 --> 00:30:38,344
And with using technology, right?

404
00:30:38,344 --> 00:30:50,344
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.

405
00:30:50,344 --> 00:30:53,344
So that's where the funding will go.

406
00:30:53,344 --> 00:30:55,344
Well, that's really awesome.

407
00:30:57,344 --> 00:30:59,344
Yeah, those sound like really worthy projects.

408
00:30:59,344 --> 00:31:09,344
Now, with Medic Mobile, and like you said, we just love combining technology with
other forces for good in the world, including charitable donations.

409
00:31:09,344 --> 00:31:18,344
Now, with Medic Mobile, this works assuming the U.S. government doesn't drone bomb
the particular recipients, right?

410
00:31:18,344 --> 00:31:20,344
Oh, jeez.

411
00:31:21,344 --> 00:31:25,344
Sorry, I didn't mean to go there, but it's just like, God, how awful that was.

412
00:31:25,344 --> 00:31:27,344
I still can't get over that.

413
00:31:28,344 --> 00:31:35,344
I'm sure, as people know, unfortunately Doctors Without Borders, was it in
Afghanistan?

414
00:31:35,344 --> 00:31:36,344
I believe so.

415
00:31:36,344 --> 00:31:40,344
Yeah, it was drone bombed by the U.S. government.

416
00:31:40,344 --> 00:31:41,344
It's just ridiculous.

417
00:31:41,344 --> 00:31:43,344
Anyway, I don't mean to take us to negative places.

418
00:31:43,344 --> 00:31:45,344
That was kind of a bad joke.

419
00:31:45,344 --> 00:32:02,344
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.

420
00:32:02,344 --> 00:32:03,344
Connie Gallipoli, excuse me.

421
00:32:03,344 --> 00:32:06,344
And, of course, just Bitcoin as a technology in general.

422
00:32:06,344 --> 00:32:12,344
Those are the things bringing good to the world and helping things like Medic
Mobile, and I think that's awesome.

423
00:32:13,344 --> 00:32:23,344
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.

424
00:32:23,344 --> 00:32:27,344
We had zero transaction fees or overhead.

425
00:32:27,344 --> 00:32:34,344
Every penny went to the fundraiser because we used Bitcoin, and we avoided using the
fundraising platform.

426
00:32:34,344 --> 00:32:39,344
Directly, and real quick, speaking of which, we were at the New York City Liberty
Fest.

427
00:32:39,344 --> 00:32:59,344
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.

428
00:32:59,344 --> 00:33:00,344
We just handed them the stuff.

429
00:33:00,344 --> 00:33:04,344
That simple, that costless, and that's the beauty of Bitcoin.

430
00:33:04,344 --> 00:33:11,344
But, well, anyway, Connie, go ahead and continue with some of the stuff you have
been doing.

431
00:33:11,344 --> 00:33:13,344
Okay.

432
00:33:13,344 --> 00:33:15,344
Well, so we have one more exciting thing.

433
00:33:15,344 --> 00:33:17,344
It's a very busy season for us.

434
00:33:17,344 --> 00:33:28,344
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.

435
00:33:28,344 --> 00:33:33,344
It has been signed by over 90 of the Bitcoin pioneers in the industry.

436
00:33:33,344 --> 00:33:35,344
By Satoshi Nakamoto?

437
00:33:35,344 --> 00:33:36,344
Wow.

438
00:33:36,344 --> 00:33:38,344
That is so cool.

439
00:33:38,344 --> 00:33:39,344
Sorry.

440
00:33:39,344 --> 00:33:40,344
It may have been.

441
00:33:40,344 --> 00:33:41,344
We don't know.

442
00:33:41,344 --> 00:33:42,344
Good point.

443
00:33:42,344 --> 00:33:43,344
Wait, 90?

444
00:33:43,344 --> 00:33:44,344
Are you serious?

445
00:33:44,344 --> 00:33:46,344
Yeah, we've got over 90.

446
00:33:46,344 --> 00:33:47,344
Can you give us some of the names?

447
00:33:47,344 --> 00:33:49,344
We're at like 95.

448
00:33:49,344 --> 00:33:51,344
Yes, I can give you some of the names.

449
00:33:51,344 --> 00:33:55,344
Right now, I don't have an internet connection, but I'll have to do it off the top
of my head.

450
00:33:55,344 --> 00:34:03,344
I know we have, since you mentioned Satoshi, we do actually have Nick Szabo's
signature.

451
00:34:03,344 --> 00:34:08,344
Not that I'm saying here for Doji, but a lot of people think he may be.

452
00:34:08,344 --> 00:34:11,344
We also have folks like Andreas.

453
00:34:11,344 --> 00:34:17,344
We have folks like Barry Silbert.

454
00:34:17,344 --> 00:34:23,344
Gosh, I'm really going off memory here because I don't have the internet.

455
00:34:24,344 --> 00:34:27,344
Yes, we have Roger.

456
00:34:27,344 --> 00:34:29,344
I think we have Eric.

457
00:34:29,344 --> 00:34:33,344
We have, let's see, who else?

458
00:34:33,344 --> 00:34:36,344
Peter Kirby from Factum.

459
00:34:36,344 --> 00:34:39,344
Scott Robinson from Plug and Play.

460
00:34:39,344 --> 00:34:41,344
Tatiana Moreau.

461
00:34:41,344 --> 00:34:42,344
Oh, cool.

462
00:34:42,344 --> 00:34:44,344
Yes.

463
00:34:44,344 --> 00:34:47,344
She's Polish like our next guest.

464
00:34:47,344 --> 00:34:49,344
Oh, yeah.

465
00:34:49,344 --> 00:34:50,344
I love Tatiana.

466
00:34:50,344 --> 00:34:52,344
She's a good friend.

467
00:34:52,344 --> 00:34:53,344
She's great.

468
00:34:53,344 --> 00:34:57,344
We were hoping to see her at New York Liberty Fest, but she was actually in, was it
Czech?

469
00:34:57,344 --> 00:34:58,344
Poland.

470
00:34:58,344 --> 00:34:59,344
No, she was in Poland.

471
00:34:59,344 --> 00:35:00,344
She was in Poland at the time, anyway.

472
00:35:00,344 --> 00:35:01,344
Yeah, she was in Poland.

473
00:35:01,344 --> 00:35:02,344
Yeah.

474
00:35:02,344 --> 00:35:03,344
That's really cool.

475
00:35:03,344 --> 00:35:08,344
It's a graphic novel or comic book with 90 plus signatures from some of the biggest
names

476
00:35:08,344 --> 00:35:09,344
in Bitcoin.

477
00:35:09,344 --> 00:35:12,344
Sorry, so BitGive is helping to auction this off?

478
00:35:12,344 --> 00:35:13,344
Yes.

479
00:35:13,344 --> 00:35:20,344
The Latin American Bitcoin Conference folks are auctioning it off as part of their
event

480
00:35:20,344 --> 00:35:26,344
that's coming up in early December, and we are going to benefit from the proceeds.

481
00:35:26,344 --> 00:35:32,344
So BitGive will have the proceeds from the auction come to us, and we'll be putting
them

482
00:35:32,344 --> 00:35:39,344
towards our newest project, which is to build a donation transparency model on the
blockchain

483
00:35:39,344 --> 00:35:45,344
so people can actually see donations flowing from start to finish on the blockchain.

484
00:35:46,344 --> 00:35:50,344
That's pretty incredible, and there isn't a better cause that the proceeds of that
could

485
00:35:50,344 --> 00:35:51,344
go to.

486
00:35:51,344 --> 00:35:52,344
Congratulations.

487
00:35:52,344 --> 00:35:56,344
I imagine it's going to fetch a lot of money, because if I had that kind of money, I
would

488
00:35:56,344 --> 00:36:01,344
probably spend thousands of dollars on it to get my hands on it.

489
00:36:01,344 --> 00:36:02,344
That's really cool.

490
00:36:02,344 --> 00:36:05,344
Well, Connie Gallippi of BitGive, we've got about 30 seconds left.

491
00:36:05,344 --> 00:36:06,344
Thanks for being on the show.

492
00:36:06,344 --> 00:36:09,344
Do you have any final thoughts or plugs to give out?

493
00:36:10,344 --> 00:36:16,344
Well, I just wanted to say thank you, and if you want to make a bid on the comic
book,

494
00:36:16,344 --> 00:36:21,344
we're doing it on Twitter, and you just have to hashtag bidforbitcoincomicbook.

495
00:36:21,344 --> 00:36:28,344
And remember, Key Fair is going through Saturday, so you can book your travel for
the holidays

496
00:36:28,344 --> 00:36:29,344
and do all your holiday shopping afterwards.

497
00:36:29,344 --> 00:36:30,344
Excellent.

498
00:36:30,344 --> 00:36:31,344
Well, thank you, Connie Gallippi of BitGive.

499
00:36:31,344 --> 00:36:33,344
We'll be right back here on the Crypto Show.

500
00:36:40,344 --> 00:36:54,344
Don't want a chip in my mother, a chip in my wife.

501
00:36:54,344 --> 00:36:57,344
I don't want a chip in my babies.

502
00:36:57,344 --> 00:36:59,344
Stay out of my lives.

503
00:36:59,344 --> 00:37:01,344
Don't want no shackles.

504
00:37:01,344 --> 00:37:04,344
Don't want no shackles on me.

505
00:37:05,344 --> 00:37:10,344
I sit down with Big Brother.

506
00:37:10,344 --> 00:37:14,344
Shame on that Big Brother trying to track and trace me and all you tagged animals.

507
00:37:14,344 --> 00:37:15,344
All right, guys.

508
00:37:15,344 --> 00:37:20,344
Welcome back to the Crypto Show here on this lovely October 21st, 2015.

509
00:37:20,344 --> 00:37:24,344
Back to the Future Day, I think everyone knows at this point.

510
00:37:24,344 --> 00:37:30,344
And, of course, it's fitting in a way, because even though maybe a lot of the
technologies

511
00:37:30,344 --> 00:37:36,344
predicted in the Back to the Future series have not come to fruition, at least not
outside

512
00:37:36,344 --> 00:37:42,344
of black budget government programs behind the scenes, we do have awesome
technologies,

513
00:37:42,344 --> 00:37:45,344
nonetheless, that are making the world a better place, like Bitcoin.

514
00:37:45,344 --> 00:37:52,344
And we were just talking with Connie Gallippi of BitGive and the BitGive Foundation,

515
00:37:52,344 --> 00:37:58,344
the first, the biggest, and the foremost Bitcoin charitable foundation.

516
00:37:58,344 --> 00:38:00,344
And they have a lot of cool projects going on.

517
00:38:00,344 --> 00:38:03,344
Oh, my.

518
00:38:03,344 --> 00:38:10,344
Including helping George Takei with his Tourettes, where he just constantly says,

519
00:38:10,344 --> 00:38:15,344
oh, my, in that very silly voice.

520
00:38:15,344 --> 00:38:23,344
But, so, guys, just to recap real quick, check out BitGive and
BitGiveFoundation.org.

521
00:38:23,344 --> 00:38:25,344
Check out some of the charitable stuff.

522
00:38:25,344 --> 00:38:27,344
There are ways to donate.

523
00:38:27,344 --> 00:38:29,344
Cheap Air, buy a plane ticket using Bitcoin on Cheap Air.

524
00:38:29,344 --> 00:38:31,344
Five bucks gets donated to BitGive.

525
00:38:31,344 --> 00:38:33,344
Use Purse.io.

526
00:38:33,344 --> 00:38:39,344
Include, do Amazon Smile and Jim, and they get 1%.

527
00:38:39,344 --> 00:38:44,344
Just, you know, pick BitGive as the recipient of the donation.

528
00:38:44,344 --> 00:38:47,344
And, of course, you can always also donate directly to BitGive.

529
00:38:47,344 --> 00:38:51,344
You can automatically have your change tip Bitcoin directed to BitGive.

530
00:38:51,344 --> 00:38:53,344
A lot of stuff you can do very easy.

531
00:38:53,344 --> 00:38:55,344
Some of it requiring actually no money out of your pocket.

532
00:38:55,344 --> 00:39:01,344
Or you can even go to our website to the FreeRoss page and find all kinds of
half-price advertising

533
00:39:01,344 --> 00:39:08,344
and just all kinds of good Bitcoin-themed things that will go directly to
FreeRoss.org.

534
00:39:08,344 --> 00:39:09,344
Absolutely.

535
00:39:09,344 --> 00:39:13,344
And then actual physical prizes you can purchase as well.

536
00:39:13,344 --> 00:39:14,344
Yeah.

537
00:39:14,344 --> 00:39:18,344
I mean, if you're a Bitcoiner and you don't have the Bitcoin rebel T-shirt, you're
just a shame.

538
00:39:18,344 --> 00:39:19,344
You're a fool.

539
00:39:19,344 --> 00:39:20,344
You're a fool.

540
00:39:20,344 --> 00:39:22,344
We need to get that full.

541
00:39:22,344 --> 00:39:24,344
There's one left.

542
00:39:24,344 --> 00:39:25,344
Oh, wow.

543
00:39:25,344 --> 00:39:26,344
Yeah.

544
00:39:26,344 --> 00:39:27,344
Well, better get on that.

545
00:39:27,344 --> 00:39:28,344
Get it.

546
00:39:28,344 --> 00:39:30,344
Go to thecryptoshow.com slash FreeRoss.

547
00:39:30,344 --> 00:39:32,344
Donate and purchase some cool stuff.

548
00:39:32,344 --> 00:39:34,344
All proceeds go to the FreeRoss.

549
00:39:34,344 --> 00:39:35,344
Thanks to Bitcoin, not bombs.

550
00:39:35,344 --> 00:39:37,344
Thanks to Bitcoin, not bombs.

551
00:39:37,344 --> 00:39:38,344
Exactly.

552
00:39:38,344 --> 00:39:39,344
And real quick, last plug.

553
00:39:39,344 --> 00:39:47,344
Before we get to our second guest, who's been very patient, I want to plug Jamie
Redmond of Cryptographics.com.

554
00:39:47,344 --> 00:39:51,344
Jamie made our logo, the coolest logo in radio.

555
00:39:51,344 --> 00:39:59,344
And he's also donated half-price graphics design on thecryptoshow.com slash
FreeRoss,

556
00:39:59,344 --> 00:40:03,344
all proceeds of which go to the FreeRoss Appeals Fund.

557
00:40:03,344 --> 00:40:04,344
So check that out.

558
00:40:04,344 --> 00:40:05,344
All right.

559
00:40:05,344 --> 00:40:14,344
Well, very pleased to have on an awesome guest with a very interesting technology
and Bitcoin application.

560
00:40:14,344 --> 00:40:16,344
His name is Paul Sztorc.

561
00:40:16,344 --> 00:40:17,344
That's it.

562
00:40:17,344 --> 00:40:18,344
Did I get it right?

563
00:40:18,344 --> 00:40:19,344
Okay.

564
00:40:19,344 --> 00:40:20,344
You did.

565
00:40:20,344 --> 00:40:21,344
Excellent.

566
00:40:21,344 --> 00:40:23,344
Probably the first ones to get it right.

567
00:40:23,344 --> 00:40:25,344
It's very commonly mispronounced.

568
00:40:25,344 --> 00:40:29,344
Everyone in my family and extended family, we're all over it.

569
00:40:29,344 --> 00:40:35,344
So you can just pronounce it however you like, and we'll just smile and just we'll
run with it.

570
00:40:35,344 --> 00:40:37,344
We're used to it by now.

571
00:40:37,344 --> 00:40:42,344
I'm going to subtly change it throughout the show every time I say his name.

572
00:40:43,344 --> 00:40:47,344
But Paul is the creator of Truthcoin.

573
00:40:47,344 --> 00:40:55,344
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.

574
00:40:55,344 --> 00:41:10,344
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.

575
00:41:10,344 --> 00:41:17,344
And so I've been interested in them since long before Bitcoin existed, let alone
since I became aware of Bitcoin.

576
00:41:17,344 --> 00:41:25,344
Prediction markets have their own kind of problems kind of remaining alive and
scaling up successfully.

577
00:41:25,344 --> 00:41:32,344
And so when I discovered Bitcoin, it sort of reminded me of this prediction market
thing.

578
00:41:32,344 --> 00:41:39,344
So when I discovered Bitcoin, I was in graduate school, and then I went and got a
job at the economics department.

579
00:41:39,344 --> 00:41:49,344
And while I was working there, I wrote this prediction markets blockchain, Bitcoin
blockchain protocol concept.

580
00:41:49,344 --> 00:42:00,344
So I guess I've worked in a number of fields, consulting and in analytics and mostly
in a statistics finance role.

581
00:42:01,344 --> 00:42:11,344
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.

582
00:42:11,344 --> 00:42:19,344
And that was the year 2013 through the end of 2014, and I'm still part-time there.

583
00:42:19,344 --> 00:42:29,344
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.

584
00:42:29,344 --> 00:42:37,344
No, always exciting. Whatever it is about Bitcoin, it's always a thrill and a
fascinating venture.

585
00:42:37,344 --> 00:42:42,344
Well, that's pretty impressive, very prestigious, the Yale economics department.

586
00:42:42,344 --> 00:42:46,344
Do you have a master's or PhD in economics, or what was your degree in?

587
00:42:46,344 --> 00:42:55,344
So I have degrees in a branch of applied math called operations research, and I have
an MBA in finance.

588
00:42:55,344 --> 00:43:00,344
And I have an undergraduate degree in economics, and I have a different
undergraduate degree in psychology actually.

589
00:43:00,344 --> 00:43:10,344
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.

590
00:43:10,344 --> 00:43:17,344
But I kind of dropped out to do this thing before I really even got started.

591
00:43:17,344 --> 00:43:21,344
Oh, that's good, because I was fixing to say I would be more impressed if you quit.

592
00:43:22,344 --> 00:43:24,344
There you did.

593
00:43:24,344 --> 00:43:28,344
Improved kind of technology or Bitcoin style.

594
00:43:28,344 --> 00:43:35,344
It's a little easier to go back, I think, there, whereas with Bitcoin, the train is
in danger of leaving.

595
00:43:35,344 --> 00:43:38,344
It's like stuff happens so fast.

596
00:43:38,344 --> 00:43:48,344
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.

597
00:43:48,344 --> 00:43:52,344
It's like two weeks will go by, and you'll think, oh, someone did something two
weeks ago.

598
00:43:52,344 --> 00:44:01,344
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.

599
00:44:01,344 --> 00:44:03,344
It just feels like it's all –

600
00:44:03,344 --> 00:44:09,344
No, it really does, and it's funny, because otherwise, as I get older, time seems to
speed up.

601
00:44:09,344 --> 00:44:10,344
But you're right.

602
00:44:10,344 --> 00:44:18,344
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.

603
00:44:18,344 --> 00:44:21,344
Yeah, time just seems to slow down.

604
00:44:21,344 --> 00:44:25,344
Except for when the price goes up over $500, then it was really –

605
00:44:27,344 --> 00:44:30,344
Then the space-time continuum is stopped entirely.

606
00:44:30,344 --> 00:44:34,344
Well, your degrees are, I think, really appropriate too.

607
00:44:34,344 --> 00:44:36,344
What a perfect combination.

608
00:44:36,344 --> 00:44:37,344
You have psychology.

609
00:44:37,344 --> 00:44:45,344
You've got math and econ, all of which I think are important for Bitcoin, but even
more applicable, I think, to prediction markets.

610
00:44:45,344 --> 00:45:03,344
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.

611
00:45:03,344 --> 00:45:13,344
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.

612
00:45:13,344 --> 00:45:15,344
And some dark sides.

613
00:45:15,344 --> 00:45:17,344
And definite dark sides.

614
00:45:17,344 --> 00:45:25,344
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.

615
00:45:25,344 --> 00:45:27,344
Okay, I'd be happy to.

616
00:45:27,344 --> 00:45:39,344
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.

617
00:45:39,344 --> 00:45:41,344
You can buy and sell a stock or a bond.

618
00:45:41,344 --> 00:45:47,344
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.

619
00:45:47,344 --> 00:45:59,344
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.

620
00:45:59,344 --> 00:46:05,344
And so there are all these people for all these inherently individually subjective
reasons.

621
00:46:05,344 --> 00:46:10,344
They transact in this market, and what results is an objective price.

622
00:46:10,344 --> 00:46:21,344
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.

623
00:46:21,344 --> 00:46:25,344
But a prediction market is where you would buy and sell a prediction.

624
00:46:25,344 --> 00:46:31,344
So you would write sort of something on a piece of paper to make it kind of
oversimplified.

625
00:46:31,344 --> 00:46:41,344
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.

626
00:46:41,344 --> 00:47:02,344
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.

627
00:47:03,344 --> 00:47:13,344
And so the difference between a prediction market and a regular market is that with
regular markets, the price sort of happens accidentally.

628
00:47:13,344 --> 00:47:19,344
But usually with prediction markets, you are aiming for this price to appear.

629
00:47:19,344 --> 00:47:27,344
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.

630
00:47:27,344 --> 00:47:33,344
Whereas in the Adam Smith sense, they just happen – we get them kind of for free and
they happen naturally.

631
00:47:33,344 --> 00:47:39,344
With this, you need to like do some work and create the predictions and create the
markets and do some stuff like that.

632
00:47:39,344 --> 00:47:43,344
Interesting. And so I guess let me ask you. I could be completely off.

633
00:47:43,344 --> 00:47:59,344
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.

634
00:47:59,344 --> 00:48:14,344
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?

635
00:48:14,344 --> 00:48:21,344
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?

636
00:48:21,344 --> 00:48:30,344
I think I do, yes. So market prices are very useful. They're very robust to
manipulation.

637
00:48:30,344 --> 00:48:34,344
If someone wants to move the price, they can for like a few minutes.

638
00:48:35,344 --> 00:48:54,344
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.

639
00:48:54,344 --> 00:49:06,344
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.

640
00:49:06,344 --> 00:49:14,344
So we know that prices do a very good job of revealing to us sort of things in
scarcity.

641
00:49:14,344 --> 00:49:20,344
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.

642
00:49:21,573 --> 00:49:37,613
Can't be trusted, can't be trusted, can't be trusted.

643
00:49:37,613 --> 00:50:00,173
Can't be trusted, can't be trusted, can't be trusted, can't be trusted, can't be
trusted.

644
00:50:00,173 --> 00:50:05,453
Welcome back to the Crypto Show here on this lovely Wednesday, October 21st, 2015,
back

645
00:50:05,453 --> 00:50:07,413
to the future day.

646
00:50:07,413 --> 00:50:12,453
And of course, we are brought to you, as always, by Brave New Books and Hill Country
Home Improvement

647
00:50:12,453 --> 00:50:14,373
here on Logos Radio Network.

648
00:50:14,373 --> 00:50:19,253
And in the first hour, we're talking to our first guest, Connie Gallippi of BitGive,
the

649
00:50:19,253 --> 00:50:27,933
BitGive Foundation, and ways that you can help support them through CheapAir and
Purse.io.

650
00:50:27,933 --> 00:50:30,053
Always a pleasure to have her on.

651
00:50:30,053 --> 00:50:35,293
And currently, we're talking to Paul Sztorc of Truthcoin, and Paul was just telling
us

652
00:50:35,293 --> 00:50:41,493
about prediction markets, what they are, and what purpose they kind of serve.

653
00:50:41,493 --> 00:50:47,333
And if there's one thing that can't be trusted, it's probably Danny's prediction on
anything,

654
00:50:47,333 --> 00:50:49,293
so he shouldn't be involved in that.

655
00:50:49,293 --> 00:50:53,133
I'm going to predict, I'm going to go ahead and predict that a bag of donuts
wouldn't

656
00:50:53,133 --> 00:50:54,573
last very long around you.

657
00:50:54,573 --> 00:50:59,173
I don't know how much money I should put on that, but they're dunkin' donuts.

658
00:50:59,173 --> 00:51:00,173
You probably would.

659
00:51:00,173 --> 00:51:04,373
Well, maybe you are better at this than I thought.

660
00:51:04,453 --> 00:51:10,253
So, you were kind of answering my question and just getting a little deeper into
prediction

661
00:51:10,253 --> 00:51:11,253
markets.

662
00:51:11,253 --> 00:51:17,533
So, I guess continue to kind of elaborate for us and explain for us how it works, a

663
00:51:17,533 --> 00:51:26,453
prediction market, and what function prices of prediction market, you know,
financial

664
00:51:26,453 --> 00:51:28,813
instruments serve in the market.

665
00:51:28,813 --> 00:51:30,333
Okay, great.

666
00:51:30,333 --> 00:51:34,973
So, I mean, the fundamental idea is very old and very simple.

667
00:51:34,973 --> 00:51:37,733
It's just asking people to put their money kind of where their mouth is.

668
00:51:37,733 --> 00:51:42,733
So, it's very easy for one person to say, I think that Hillary Clinton will be
elected

669
00:51:42,733 --> 00:51:50,853
in 2016, but for someone to actually put money on that kind of proves that they're
not just

670
00:51:50,853 --> 00:51:56,853
kind of making stuff up and kind of, you know, just sort of maybe, you know,
shooting the

671
00:51:56,853 --> 00:51:58,693
breeze or whatever.

672
00:51:58,693 --> 00:52:04,133
And so, but a cool thing about this is that the betting all takes place in this
market

673
00:52:04,133 --> 00:52:05,133
environment.

674
00:52:05,133 --> 00:52:10,813
So, instead of having a bookkeeper just set fixed odds, the odds change like the way
prices

675
00:52:10,813 --> 00:52:14,973
change in a market based on how much money is wagered on each side.

676
00:52:14,973 --> 00:52:23,613
So, this enables a lot of different things, but one thing that it lets everyone do
is

677
00:52:23,613 --> 00:52:27,973
look at the market and see what the current price is, and if they disagree with it,
they

678
00:52:27,973 --> 00:52:29,493
can move it to something else.

679
00:52:29,493 --> 00:52:35,373
They can, if it's too low, they can buy, and they can keep buying until the price is
some,

680
00:52:35,373 --> 00:52:37,733
you know, where they think it should be, and they should be happy to do that.

681
00:52:37,733 --> 00:52:40,093
They should have an incentive to do that.

682
00:52:40,093 --> 00:52:44,973
And if they think it's too high, they can short or they can go, they can buy the
opposite

683
00:52:44,973 --> 00:52:50,293
side of that, take the opposite side of that bet, and then the price will come down,
and

684
00:52:50,293 --> 00:52:53,813
they should be happy to keep doing that until the price is where it is.

685
00:52:53,813 --> 00:52:58,213
So, since it's so easy for someone to bat the price around, the price should stop at

686
00:52:58,213 --> 00:53:05,573
a place where everyone has some kind of consensus or some kind of agreement that
this is the

687
00:53:05,573 --> 00:53:06,573
fair price.

688
00:53:06,573 --> 00:53:14,613
This is where the price, the single objective price sort of deserves to be, and
that's sort

689
00:53:14,613 --> 00:53:21,333
of the function that they serve is that they let everyone kind of cancel out their
different

690
00:53:21,333 --> 00:53:26,613
views and contribute their information, and then they rebroadcast all that
information

691
00:53:26,613 --> 00:53:27,613
to everyone.

692
00:53:27,613 --> 00:53:32,493
So, even people who didn't participate, who didn't do any betting of their own, they
can

693
00:53:32,493 --> 00:53:36,413
look at these prices, and they can learn things about the future, and they can even
compare

694
00:53:36,413 --> 00:53:37,413
different futures.

695
00:53:37,413 --> 00:53:39,373
They can say, if we did this, what would happen?

696
00:53:39,373 --> 00:53:41,053
If we did that, what would happen?

697
00:53:41,053 --> 00:53:45,253
And that has a lot of, that has some serious potential.

698
00:53:45,613 --> 00:53:51,973
So, basically, yeah, no, it really is, and like you said, in some respects, it's no
different

699
00:53:51,973 --> 00:53:56,693
from a regular market, just by virtue of the fact that all markets have certain
similar

700
00:53:56,693 --> 00:53:57,693
attributes.

701
00:53:57,693 --> 00:54:03,733
But basically, when using these prediction markets, there are all these opposing
forces

702
00:54:03,733 --> 00:54:09,093
as far as the prediction and where the price moves, and in theory, it tends towards
an

703
00:54:09,093 --> 00:54:14,573
equilibrium where everyone sort of agrees on everything, and you have all the
distributed

704
00:54:14,573 --> 00:54:22,053
information of a market in subjective values and knowledge being reflected in sort
of the

705
00:54:22,053 --> 00:54:23,053
final price of that.

706
00:54:23,053 --> 00:54:25,733
Is that a fairly accurate thing to say?

707
00:54:25,733 --> 00:54:27,573
Yeah, I think so.

708
00:54:27,573 --> 00:54:35,213
It's a conveyor that makes a group's subjective opinions, numerous subjective
opinions.

709
00:54:35,213 --> 00:54:41,973
It collapses them all into one objective thing, so that's really useful.

710
00:54:42,053 --> 00:54:47,733
And in theory, too, I mean, the market can, a bookie is sort of an expert who judges
an

711
00:54:47,733 --> 00:54:52,053
event and comes up with odds based on his expert opinion, but the market in the
aggregate

712
00:54:52,053 --> 00:54:53,053
can be that way, too.

713
00:54:53,053 --> 00:54:57,653
And I think the beauty is, too, if you want to move the market in a major way,
obviously

714
00:54:57,653 --> 00:55:03,053
markets, as you kind of mentioned already, can be somewhat rigged or manipulated or
pushed,

715
00:55:03,053 --> 00:55:07,693
but to move a market, if you wanted to move a bookie, you could buy him off, but to
move

716
00:55:07,693 --> 00:55:14,133
a market, you have to risk a lot of money, theoretically, typically, to do that.

717
00:55:14,133 --> 00:55:19,853
And so for someone to really push the price in a certain direction, they have to put
their

718
00:55:19,853 --> 00:55:25,933
money where their mouth is, and they can't just do it through pulling some string,
and

719
00:55:25,933 --> 00:55:28,573
I think that's kind of the beauty of it, too.

720
00:55:28,573 --> 00:55:29,573
Yeah, absolutely.

721
00:55:29,573 --> 00:55:36,973
If you want to, so yeah, you can pay off a bookie or some guy if the guy is the
administrator

722
00:55:36,973 --> 00:55:41,613
or whatever, but for a market, you have a lot of problems.

723
00:55:41,613 --> 00:55:48,253
So first of all, you might prefer that one thing be one way, but every single
person,

724
00:55:48,253 --> 00:55:53,253
including you, prefers having more money to having less money, so you're going to
distort

725
00:55:53,253 --> 00:55:57,933
this market somewhere else, and you better hope that other people don't find out
about

726
00:55:57,933 --> 00:56:04,813
it or they don't just guess that they see, hey, the price is moving really far in a
certain

727
00:56:04,813 --> 00:56:05,813
direction.

728
00:56:06,253 --> 00:56:11,293
They might give it to you for like four hours, but later on, they might be thinking,
hey,

729
00:56:11,293 --> 00:56:16,013
this is some guy who's just putting money over here to try and move the price.

730
00:56:16,013 --> 00:56:20,693
That means that the price is someplace it really shouldn't be, and we can pick up
these

731
00:56:20,693 --> 00:56:25,053
cheap, these chairs are artificially cheap, and we should just pick them up.

732
00:56:25,053 --> 00:56:32,653
You know, I've sort of over the years informally done occasional personal study of
economics

733
00:56:32,653 --> 00:56:38,053
and a little finance or whatever, and it's amazing the beauty of markets and the
subtlety

734
00:56:38,053 --> 00:56:42,653
of markets, and a lot of people who don't appreciate the power of markets and their

735
00:56:42,653 --> 00:56:51,013
overall benefit don't realize just all the nuances that go into what seems like a
chaotic

736
00:56:51,013 --> 00:56:55,853
mesh of prices and bids and all that sort of stuff, and it's a beautiful thing.

737
00:56:56,853 --> 00:57:02,213
On your website for Truthcoin, I think I got this.

738
00:57:02,213 --> 00:57:05,253
I want to make sure I understood what you were trying to say.

739
00:57:05,253 --> 00:57:10,493
You have a statement that prediction markets have many applications, which include
superior

740
00:57:10,493 --> 00:57:16,973
alternatives to Lighthouse, Counterparty, Medici, BidShares, and Ethereum.

741
00:57:16,973 --> 00:57:19,493
What did you mean by that?

742
00:57:19,493 --> 00:57:24,053
I couldn't tell if you were talking about prediction markets specifically or
Truthcoin.

743
00:57:24,653 --> 00:57:25,653
Anyway, go ahead.

744
00:57:25,653 --> 00:57:31,933
So, a lot of these projects, I have a, so Truthcoin.info is not only the website for

745
00:57:31,933 --> 00:57:37,413
my project, but it's also, I have a blog there, and one of my most recent blog posts
is called

746
00:57:37,413 --> 00:57:44,933
Oracles are the real smart contracts, and an oracle in computer science is sort of
like

747
00:57:44,933 --> 00:57:50,173
the computer asks you a question and kind of, it needs like your help, there's some

748
00:57:50,293 --> 00:57:57,293
sort of black box where the computer needs to know, like, it needs to know, it
needs,

749
00:57:57,293 --> 00:58:01,213
so in the, when people use, talk about it in the blockchain world, the Bitcoin
blockchain

750
00:58:01,213 --> 00:58:06,973
world, they're saying that the blockchain needs to dial out and get some extra
information

751
00:58:06,973 --> 00:58:10,733
and pull it into the blockchain world.

752
00:58:10,733 --> 00:58:15,213
So they would need to know like Hillary Clinton, was Hillary Clinton elected or not?

753
00:58:15,213 --> 00:58:19,973
The Bitcoin blockchain doesn't know who any of those people are or what an election
is

754
00:58:19,973 --> 00:58:20,973
or whatever that is.

755
00:58:20,973 --> 00:58:24,093
So it needs to dial out and get that from an oracle.

756
00:58:24,093 --> 00:58:30,253
So an oracle is this external data question, and what I'm saying is that this
project had

757
00:58:30,253 --> 00:58:34,613
to solve, in order to exist, it had to solve that problem of how the blockchain
becomes

758
00:58:34,613 --> 00:58:40,413
aware of these facts and these external things in the real world and how it pulls
them on

759
00:58:40,413 --> 00:58:48,293
and maps them into something that the cryptocurrency software can use, and that is
way better than

760
00:58:48,293 --> 00:58:53,413
basically everything that other people are spending their time on, because if you
can't

761
00:58:53,413 --> 00:58:59,493
do that, and none of those projects can do this thing, I spent a very long time
looking

762
00:58:59,493 --> 00:59:09,293
at the way BitShares, Counterparty, and Ethereum were set up, and they cannot, they
don't contain

763
00:59:09,293 --> 00:59:14,973
features that allow them to do this, this thing, so I was, so I'm sort of talking
about

764
00:59:14,973 --> 00:59:20,053
both, because, but to answer your question, I would be talking about Truthcoin, the
project.

765
00:59:20,053 --> 00:59:26,293
Since the project can learn about the external world and pay people based on that,
it's sort

766
00:59:26,293 --> 00:59:31,893
of the real smart contract type project, so it's...

767
00:59:31,893 --> 00:59:35,773
You explain that really well, actually, and here's why I say that, and we'll start
from

768
00:59:35,773 --> 00:59:37,373
the fact that you're very articulate.

769
00:59:37,373 --> 00:59:40,413
I had wondered that myself.

770
00:59:40,413 --> 00:59:47,693
We've had on people from, we've had on Chris Odom of Open Transactions, I think
we've had

771
00:59:47,693 --> 00:59:56,013
someone from Ethereum, we've had people just talk about these various platforms, and
I'm

772
00:59:56,013 --> 01:00:02,333
not a tech guy, but nonetheless, I never quite could see how, I understood the
concept in

773
01:00:02,333 --> 01:00:08,973
the abstract, but it never seemed to be explained how the blockchain communicated
with the sort

774
01:00:08,973 --> 01:00:13,893
of outside world like you were talking about, you know, how it interfaced and
interacted

775
01:00:13,893 --> 01:00:19,453
to get that data, and that makes a lot of sense now, that Truthcoin is something
that

776
01:00:19,453 --> 01:00:23,253
can do that, and anyway, continue with that.

777
01:00:23,253 --> 01:00:27,853
Yeah, well, these other projects have been a major disappointment, really, for me.

778
01:00:27,893 --> 01:00:35,173
I actually wrote, so I mentioned that I kind of wrote this idea up kind of for fun
in 2013,

779
01:00:35,173 --> 01:00:39,213
but I was very concerned because I felt that it was, you know, a little on the
complex

780
01:00:39,213 --> 01:00:46,053
side, to say the least, and, you know, Bitcoin already has, you know, some problems
getting,

781
01:00:46,053 --> 01:00:49,653
people complain about this, but they say it's some problems getting developers and
getting

782
01:00:49,653 --> 01:00:53,893
enough serious people involved who can, like, work on this full time, and who's,
like, going

783
01:00:53,893 --> 01:00:58,533
to pay for them and compensate for this, these risks that they, they used to be very

784
01:00:58,533 --> 01:01:03,413
risky, like, if you were working on Bitcoin, you could, like, people would, like,
laugh

785
01:01:03,413 --> 01:01:08,373
at you, and they would say, you know, like, what is that, they wouldn't get it, and
so,

786
01:01:08,373 --> 01:01:11,613
like, it was sort of like, how are we going to find these people, and it's still a
problem

787
01:01:11,613 --> 01:01:17,213
that people have today, and in 2013, I was thinking, like, no way is there going to
be

788
01:01:17,213 --> 01:01:23,693
the spare developer time to, like, work on this open source project.

789
01:01:23,693 --> 01:01:26,773
And so I kind of just wrote it up, like, kind of encoded it up a little, like the
proof

790
01:01:26,773 --> 01:01:32,573
of concept, kind of for fun, for my own personal reasons, and then I started to see
all these

791
01:01:32,573 --> 01:01:38,753
other, these other projects, which include BitShares and Ethereum and Counterparty
and

792
01:01:38,753 --> 01:01:44,853
open transactions as well, to a lesser extent, even colored coins and things like,
things

793
01:01:44,853 --> 01:01:53,253
like that, and I, it was, it was just really disappointing because no one, it's
just, it's

794
01:01:53,253 --> 01:01:59,533
hard to express, but just so much kind of forcing people to pay or to invest in an
open

795
01:01:59,533 --> 01:02:05,573
source idea that's ultimately going to be free, that was kind of weird, and kind of

796
01:02:05,573 --> 01:02:10,293
people building these big teams and getting all these marketing people together, so
BitShares

797
01:02:10,293 --> 01:02:18,613
and Ethereum in particular are guilty of this kind of, like, huge kind of cult-like
community

798
01:02:18,613 --> 01:02:24,053
thing, or trying to, and kind of trying to, you know, almost spook people, where
it's

799
01:02:24,053 --> 01:02:28,933
sort of like, this isn't a competitor to Bitcoin, wink, wink, or something, getting
early, kind

800
01:02:28,933 --> 01:02:33,533
of, just kind of this really annoying thing by these people who didn't really seem
to

801
01:02:33,533 --> 01:02:39,693
kind of understand, I mean, I'd hate to, I'd hate to talk about them if they're not
here,

802
01:02:39,693 --> 01:02:44,653
but for example, Dan Larimer of BitShares, like, clearly had no idea what a
prediction

803
01:02:44,653 --> 01:02:50,373
market was, but he claimed that BitShares had prediction markets, but then when I
asked

804
01:02:50,373 --> 01:02:56,293
him where they were, he pointed to something that was not even, not even close to
anything

805
01:02:56,293 --> 01:02:57,293
resembling.

806
01:02:57,293 --> 01:03:01,013
Well, I want you to know, I want you to know that we're coming to a break, and that
the

807
01:03:01,013 --> 01:03:06,213
crypto show has prediction markets, they're just not up yet, no, but we're talking
with

808
01:03:06,213 --> 01:03:12,493
Paul Sztorc of Truthcoin, and this is already a really fascinating platform and
topic, and

809
01:03:12,493 --> 01:03:16,213
we're really excited to have Paul Sztorc on of Truthcoin, so stay tuned, and we'll

810
01:03:16,213 --> 01:03:19,213
be right back here on the crypto show, guys.

811
01:03:19,213 --> 01:03:29,213
This is the Logos, the Logos, the Radio, Network, Network, Network, Network,
Network, Network.

812
01:03:30,213 --> 01:03:37,213
Oh, for the longest time.

813
01:03:37,213 --> 01:03:42,213
Oh, for the longest time.

814
01:03:42,213 --> 01:03:53,213
If you said that Bitcoin was my line, I would tell you, shown up, show you ride.

815
01:03:53,213 --> 01:03:56,213
What else can I do?

816
01:03:56,213 --> 01:04:04,213
I'm so inspired by you, and I'm just holding for the longest time.

817
01:04:04,213 --> 01:04:10,213
Once I knew my stocks and bonds were gone.

818
01:04:10,213 --> 01:04:12,213
All right, guys.

819
01:04:12,213 --> 01:04:16,213
Welcome back to the crypto show here on this lovely Back to the Future Day, and I'm
just

820
01:04:16,213 --> 01:04:20,213
going to leave it at that, because you got to figure it out, and if you don't know,
you're

821
01:04:20,213 --> 01:04:21,213
a fool.

822
01:04:22,213 --> 01:04:26,213
October 21st, 2015, a Wednesday here on Logos Radio Network, and we are brought to
you,

823
01:04:26,213 --> 01:04:32,213
as always, by Hill Country Home Improvements and Brave New Books, and don't forget
to

824
01:04:32,213 --> 01:04:35,213
go to thecryptoshow.com slash Free Ross.

825
01:04:35,213 --> 01:04:38,213
Donate directly to the Free Ross Appeals Fund.

826
01:04:38,213 --> 01:04:43,213
Buy at purse.io for discounts of up to 30% on Amazon through the crypto show at
thecryptoshow.com,

827
01:04:43,213 --> 01:04:49,213
and you can purchase some tangy tangerine, too, at the crypto show, so check at
thecryptoshow.com.

828
01:04:49,213 --> 01:04:56,213
So check that out, and we're talking with Paul Sztorc of Truthcoin, and just so you

829
01:04:56,213 --> 01:05:03,213
know or want to know more information, you can go to Truthcoin.info for a good
explanation

830
01:05:03,213 --> 01:05:09,213
of what Truthcoin is and how it operates, and he does have blog articles, as well,
for

831
01:05:09,213 --> 01:05:13,213
deeper investigation of the topic, as well as other topics.

832
01:05:13,213 --> 01:05:19,213
And, Paul, you were just, well, just kind of giving, explaining to us about
Truthcoin

833
01:05:19,213 --> 01:05:23,213
and how it's superior to a lot of platforms that are out there.

834
01:05:23,213 --> 01:05:28,213
And, Danny, you had kind of a question during the break that Paul kind of addressed
off

835
01:05:28,213 --> 01:05:29,213
air.

836
01:05:29,213 --> 01:05:31,213
Why don't you ask him again, and he can address it on-

837
01:05:31,213 --> 01:05:37,213
How would Truthcoin or any other smart contract platform address recurring payments
for, say,

838
01:05:37,213 --> 01:05:42,213
people's rent or a phone bill or electric bill, whatever?

839
01:05:42,213 --> 01:05:49,213
Yeah, so my view is that Truthcoin would not, that contract is not quite smart
enough

840
01:05:49,213 --> 01:05:54,213
to warrant the big guns, maybe, of Truthcoin.

841
01:05:54,213 --> 01:06:00,213
But I think Bitcoin can already, there's already some stuff in the Bitcoin protocol
that just

842
01:06:00,213 --> 01:06:02,213
didn't quite work.

843
01:06:02,213 --> 01:06:08,213
It wasn't actually, it was coded in by Satoshi, but it didn't quite, it didn't quite
make

844
01:06:09,213 --> 01:06:14,213
the, sort of the transition into being actually used.

845
01:06:14,213 --> 01:06:19,213
And there were some sort of little quirks in there that, but those quirks are being

846
01:06:19,213 --> 01:06:20,213
fixed.

847
01:06:20,213 --> 01:06:25,213
These new things, relative check, lock, time, verify, and the Lightning Network that
I think

848
01:06:25,213 --> 01:06:33,213
will turn Bitcoin, it's sort of, right now it's talked about as this settlement
system.

849
01:06:34,213 --> 01:06:40,213
And I think the Lightning Network in particular will turn it more into something
that is like

850
01:06:40,213 --> 01:06:47,213
the payments world that people are used to, which I think will include, you won't be
able

851
01:06:47,213 --> 01:06:50,213
to, you still won't, you know, no one will be able to take money without your
consent,

852
01:06:50,213 --> 01:06:52,213
which is a good thing.

853
01:06:52,213 --> 01:06:56,213
But you'll be able to get, like, recurring bill, you'll be able to get, like, billed

854
01:06:56,213 --> 01:07:00,213
for something and just click it, and it will just be paid instantly, and it will be
paid

855
01:07:00,213 --> 01:07:07,213
at certain times, and you can even move, make sort of special transactions that
can't

856
01:07:07,213 --> 01:07:09,213
be spent before a certain time.

857
01:07:09,213 --> 01:07:13,213
But with a smart contract, I wouldn't say if it was a six-month term, would I have
to

858
01:07:13,213 --> 01:07:16,213
put all of the money in for the full six months?

859
01:07:16,213 --> 01:07:21,213
Say I have a bill that's $200 a month, do I have to put $1,200 in this smart
contract

860
01:07:21,213 --> 01:07:23,213
for it to pay out monthly?

861
01:07:23,213 --> 01:07:24,213
Well, yeah.

862
01:07:24,213 --> 01:07:28,213
So I would say, well, it depends on what you want to achieve, but I think that's
really

863
01:07:28,213 --> 01:07:33,213
the reason why people don't, well, smart contracts is one of those phrases, right,

864
01:07:33,213 --> 01:07:35,213
where it's sort of like, what does it mean?

865
01:07:35,213 --> 01:07:38,213
It sort of means a different thing to each person.

866
01:07:38,213 --> 01:07:41,213
It's sort of a little bit of a Rorschach type experience.

867
01:07:41,213 --> 01:07:43,213
But I think it's desirable, right?

868
01:07:43,213 --> 01:07:47,213
You don't want to have to pay up front for six months.

869
01:07:47,213 --> 01:07:49,213
Why should you do that?

870
01:07:49,213 --> 01:07:52,213
So why would you want to make recurring payments?

871
01:07:52,213 --> 01:07:55,213
So you can sign transactions.

872
01:07:55,213 --> 01:07:58,213
So you can say, I'm going to deposit to this one address.

873
01:07:58,213 --> 01:08:05,213
You can just say, I personally, this address will be my air conditioning fund or
whatever.

874
01:08:05,213 --> 01:08:11,213
And you can just make transactions that leave that address but can't be spent until
next

875
01:08:11,213 --> 01:08:17,213
month or three months from now or whatever using like analog time.

876
01:08:17,213 --> 01:08:24,213
And then your counterparty will have to wait to broadcast those because they're not
standard

877
01:08:24,213 --> 01:08:25,213
or something.

878
01:08:25,213 --> 01:08:29,213
But this type of stuff is really not – it's really not that smart, right?

879
01:08:29,213 --> 01:08:32,213
They can just wait, and they can just invoice you, and you can just pay it like –

880
01:08:32,213 --> 01:08:33,213
Right.

881
01:08:33,213 --> 01:08:38,213
So recurring payments are not – it's just not groundbreaking.

882
01:08:38,213 --> 01:08:44,213
There's more complicated stuff for things like smart contracts to tackle and other
platforms.

883
01:08:44,213 --> 01:08:48,213
Well, and so let's switch gears for a second.

884
01:08:48,213 --> 01:08:53,213
In a minute, I want to ask you, you had some really cool – a really cool list of
applied

885
01:08:53,213 --> 01:08:59,213
predictions when it came to Truthcoin, smart contracts, and prediction markets.

886
01:08:59,213 --> 01:09:04,213
But we were talking about how prediction markets work.

887
01:09:04,213 --> 01:09:10,213
And of course, a big aspect of prediction markets is you want to make money.

888
01:09:10,213 --> 01:09:14,213
Like you mentioned, nobody – everybody wants to have more money than they had
before.

889
01:09:14,213 --> 01:09:21,213
And part of that is doing speculative things on a prediction market.

890
01:09:22,213 --> 01:09:25,213
But what are some of the less obvious benefits of a prediction market?

891
01:09:25,213 --> 01:09:30,213
Basically, of course, anyone can make money getting a bet right, but what are some
of

892
01:09:30,213 --> 01:09:35,213
the, say, positive externalities, if you will, where the whole market or people
maybe not

893
01:09:35,213 --> 01:09:39,213
party to the transaction benefit?

894
01:09:39,213 --> 01:09:40,213
Yeah.

895
01:09:40,213 --> 01:09:47,213
So one beautiful thing is that not only is this sort of a win-win solution for the
two

896
01:09:47,213 --> 01:09:51,213
people who bet, people disagree on something.

897
01:09:51,213 --> 01:09:54,213
They say one person says Hillary Clinton will be elected.

898
01:09:54,213 --> 01:09:57,213
Another person says Hillary Clinton will not be elected.

899
01:09:57,213 --> 01:10:02,213
And they can bet and maybe they both walk away feeling happier about the bet because

900
01:10:02,213 --> 01:10:06,213
they both think that the other guy is a sucker.

901
01:10:06,213 --> 01:10:11,213
But the beautiful thing is that you get this effect from – you basically get the
price

902
01:10:11,213 --> 01:10:12,213
system.

903
01:10:13,213 --> 01:10:18,213
You get this objective data that anyone can use and it's reliable.

904
01:10:18,213 --> 01:10:24,213
So if someone wants to just publish some report about we should do this or we should
do that,

905
01:10:24,213 --> 01:10:26,213
then someone else can publish a counter report.

906
01:10:26,213 --> 01:10:32,213
So I guess to really boil it down, if you learn something – like let's say you work

907
01:10:32,213 --> 01:10:36,213
really hard and you're like a scholar on something, whatever.

908
01:10:36,213 --> 01:10:37,213
It could be anything.

909
01:10:37,213 --> 01:10:40,213
I can't really relate to either one, but go ahead.

910
01:10:41,213 --> 01:10:45,213
So you work really hard and you've learned X or whatever.

911
01:10:45,213 --> 01:10:49,213
You still have all of your work really cut out for you.

912
01:10:49,213 --> 01:10:56,213
It's all ahead of you still because unless what you learned is something that really

913
01:10:56,213 --> 01:11:00,213
only affects you, which is not a lot of things, I like that.

914
01:11:00,213 --> 01:11:05,213
If this is some important thing like for example, we should get rid of the minimum
wage.

915
01:11:05,213 --> 01:11:11,213
Let's say you learned you worked really hard and you risked embarrassment by
exploring

916
01:11:11,213 --> 01:11:17,213
this taboo issue and now you've learned this thing and you invested the time and you
did

917
01:11:17,213 --> 01:11:20,213
some reading and you read all the different points of view.

918
01:11:20,213 --> 01:11:26,213
Now you think we should get rid of the minimum wage because it's only useful for
helping

919
01:11:26,213 --> 01:11:32,213
people in anti-competitive unions keep their jobs and it doesn't help the poor or
anything

920
01:11:32,213 --> 01:11:33,213
like that.

921
01:11:33,213 --> 01:11:35,213
You've reached this view now.

922
01:11:35,213 --> 01:11:38,213
You still have to convince everyone else.

923
01:11:38,213 --> 01:11:45,213
One cool thing about these prices is that they ultimately settle on what could be
regarded

924
01:11:45,213 --> 01:11:55,213
as the right answer because the price will move for as long as people feel
confidently

925
01:11:55,213 --> 01:11:56,213
that it is wrong.

926
01:11:56,213 --> 01:12:00,213
So when it stops moving, you're going to think, well, I guess no one feels that
strongly about

927
01:12:00,213 --> 01:12:03,213
changing it because the price is just what it is.

928
01:12:03,213 --> 01:12:10,213
So since the prediction market will get the right answer about what we can expect in
the

929
01:12:10,213 --> 01:12:18,213
future, if you ask it a really cool question, you can get out an answer that even
like an

930
01:12:18,213 --> 01:12:22,213
answer that would normally be maybe censored or just for reasons of embarrassment or
might

931
01:12:22,213 --> 01:12:26,213
be actively censored and removed.

932
01:12:26,213 --> 01:12:31,213
You can get a really cool answer to fall out and it will just be hanging there
broadcasting

933
01:12:31,213 --> 01:12:33,213
to everyone this answer.

934
01:12:33,213 --> 01:12:39,213
So you can ask a prediction market a very interesting question like, if we elected
Hillary

935
01:12:39,213 --> 01:12:42,213
Clinton, what would the unemployment rate be?

936
01:12:42,213 --> 01:12:47,213
And then you could say, if we elected whoever, I don't know, Jeb Bush or whatever
it's going

937
01:12:47,213 --> 01:12:51,213
to be, what would the unemployment rate be?

938
01:12:51,213 --> 01:12:56,213
So you can look at both of those or to keep it simpler in this yes-no world, you
could

939
01:12:56,213 --> 01:13:01,213
say, if we elected Hillary Clinton, will the unemployment rate be below 5%?

940
01:13:01,213 --> 01:13:06,213
And if we elected Jeb Bush, will the unemployment rate be below 5%?

941
01:13:06,213 --> 01:13:10,213
And then you can just say, who is more likely to bring us this 5% number?

942
01:13:10,213 --> 01:13:18,213
And then you don't have to do all this work or all this kind of psychologically
biased

943
01:13:18,213 --> 01:13:24,213
contaminated political reasoning and show up to conferences and things and political

944
01:13:24,213 --> 01:13:26,213
conventions and rallies.

945
01:13:26,213 --> 01:13:31,213
You can just kind of turn on your phone and you can just look at the relationship
between

946
01:13:31,213 --> 01:13:41,213
reality and the future and your choice today in the ballot that the person you
choose to

947
01:13:41,213 --> 01:13:42,213
cast your vote for.

948
01:13:42,213 --> 01:13:45,213
And you can just say, well, I don't really care about any of this other stuff.

949
01:13:45,213 --> 01:13:50,213
I don't really care about the person's name or their race or their gender or their
political

950
01:13:50,213 --> 01:13:51,213
party.

951
01:13:51,213 --> 01:13:53,213
I really only care about getting unemployment down.

952
01:13:53,213 --> 01:13:56,213
So I'm just going to vote based on that.

953
01:13:56,213 --> 01:13:59,213
A good way to find crooked voting maybe.

954
01:13:59,213 --> 01:14:04,213
Yeah, that's another thing is that right now, it wouldn't really matter, right, if
the voting

955
01:14:04,213 --> 01:14:09,213
were all rigged because the process is driven, the voting process is driven by…

956
01:14:09,213 --> 01:14:11,213
Well, I hate to interrupt, but we're coming to a break.

957
01:14:11,213 --> 01:14:12,213
Sorry, Paul.

958
01:14:12,213 --> 01:14:14,213
Pick up that thought on the other side of the break.

959
01:14:14,213 --> 01:14:16,213
We'll be right back with Paul Sztorc of Truth.

960
01:14:16,213 --> 01:14:24,213
You're listening to the Logos Radio Network at logosradionetwork.com.

961
01:14:25,832 --> 01:14:29,832
I've been walking a tightrope between fact and fiction.

962
01:14:29,832 --> 01:14:34,832
Been wrestling with demons in small bottle prisons.

963
01:14:34,832 --> 01:14:39,832
Been talking to sinners who claim to be Christian.

964
01:14:39,832 --> 01:14:44,832
Been shouting at leaders who claim to be listening.

965
01:14:44,832 --> 01:14:49,832
And the pendulum swings from the left to the right.

966
01:14:49,832 --> 01:14:54,832
As momentum increases, the need for the fight.

967
01:14:54,832 --> 01:14:59,832
Like a moment of blindness and a lifetime of sight.

968
01:14:59,832 --> 01:15:05,832
And I am caught somewhere in the middle.

969
01:15:09,832 --> 01:15:14,832
I saw a president lying to the needs of his people.

970
01:15:14,832 --> 01:15:19,832
Saw a camel pass through the eye of a needle.

971
01:15:44,832 --> 01:15:53,832
And go to the bitcoinbookstore.com where you can order over 50 books on Bitcoin
through the Brave New Books sister website.

972
01:15:53,832 --> 01:16:00,832
And we're talking to Paul Sztorc of Truthcoin.

973
01:16:00,832 --> 01:16:03,832
Man, I got it right and then messed it up.

974
01:16:03,832 --> 01:16:11,832
And you can go to Truthcoin.info to find out more about him, about Truthcoin, and
see his latest blog articles.

975
01:16:11,832 --> 01:16:16,832
And Paul, before we move on, I wanted to ask you something real quick.

976
01:16:16,832 --> 01:16:21,832
Since you made a statement that, well, made this question occur to me.

977
01:16:21,832 --> 01:16:28,832
You mentioned FundMises before. Do you at all subscribe to the Austrian school, or
what's your take on it?

978
01:16:28,832 --> 01:16:36,832
Well, my take on it is that I, you know, I try to be kind of as eclectic as
possible.

979
01:16:36,832 --> 01:16:39,832
And I don't try to join any group at all.

980
01:16:39,832 --> 01:16:44,832
So that, and I very fervently believe in this non-group thing.

981
01:16:44,832 --> 01:16:51,832
And I try to apply it to religion, politics, economics, and everything.

982
01:16:51,832 --> 01:16:53,832
And I just try to only believe things that are true.

983
01:16:53,832 --> 01:16:58,832
So I was really, really impressed with Peter Schiff's mortgage banker's speech.

984
01:16:58,832 --> 01:17:04,832
And I think everyone should watch the speech he gave in 2016, I mean 2006, not 2016.

985
01:17:04,832 --> 01:17:07,832
2006, if you're not familiar with that.

986
01:17:07,832 --> 01:17:10,832
And he's obviously a big Austrian guy.

987
01:17:10,832 --> 01:17:14,832
And the other things I have kind of impressed.

988
01:17:14,832 --> 01:17:26,832
I guess if I had to pick one person, I would say the closest kind of economist to me
is this guy Steve Keen.

989
01:17:26,832 --> 01:17:32,832
Who is, he describes himself as a, I don't even know what he would even describe
himself as.

990
01:17:32,832 --> 01:17:34,832
I think it's like a post-Keynesian or something.

991
01:17:34,832 --> 01:17:39,832
But it doesn't really matter because what he believes is so different from what
everyone else believes.

992
01:17:39,832 --> 01:17:48,832
And it's very similar to, so he's, Steve Keen is like this guy off of Minsky who was
an economist.

993
01:17:48,832 --> 01:17:52,832
It's kind of in the middle of the, more in the middle of the 1900s.

994
01:17:52,832 --> 01:17:58,832
And so, but I really don't kind of subscribe to any group or another.

995
01:17:58,832 --> 01:18:03,832
I'm very skeptical of all macroeconomics.

996
01:18:03,832 --> 01:18:11,832
I love microeconomics and sort of profit maximizing and rational behavior and game
theory and stuff like that.

997
01:18:11,832 --> 01:18:17,832
But the macro stuff I'm safe assuming that really no one kind of knows.

998
01:18:17,832 --> 01:18:19,832
And I think that you're very comfortable.

999
01:18:19,832 --> 01:18:24,832
Another person would be like Nassim Taleb that I would be kind of very closely
aligned with.

1000
01:18:24,832 --> 01:18:25,832
I would say that.

1001
01:18:25,832 --> 01:18:27,832
He's the author of The Black Swan.

1002
01:18:27,832 --> 01:18:30,832
The Black Swan, Fooled by Randomness, Antifragile.

1003
01:18:30,832 --> 01:18:40,832
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.

1004
01:18:40,832 --> 01:18:46,832
And so I think one advantage that the Austrian school has is that there's no
Austrians in charge.

1005
01:18:47,832 --> 01:18:56,832
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.

1006
01:18:56,832 --> 01:19:06,832
So that's not to say anything against or in favor of kind of currently whatever
neoclassical or whatever other stuff is going around.

1007
01:19:06,832 --> 01:19:10,832
Definitely I'm like a Milton Friedman guy.

1008
01:19:10,832 --> 01:19:17,832
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.

1009
01:19:17,832 --> 01:19:21,832
Can I interest you in some Sports Illustrated magazine?

1010
01:19:21,832 --> 01:19:23,832
Yeah, same thing with sports, right?

1011
01:19:23,832 --> 01:19:30,832
So that's the whole thing about sports is that it sort of domesticates this instinct
people have to join a team.

1012
01:19:30,832 --> 01:19:31,832
Yeah, the herd mentality.

1013
01:19:31,832 --> 01:19:34,832
And I respect your answer quite a bit.

1014
01:19:34,832 --> 01:19:47,832
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.

1015
01:19:47,832 --> 01:20:00,832
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.

1016
01:20:00,832 --> 01:20:03,832
And then also they're very anti-macro.

1017
01:20:03,832 --> 01:20:16,832
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.

1018
01:20:17,832 --> 01:20:27,832
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.

1019
01:20:27,832 --> 01:20:32,832
A lot of his supporters I think are Keynesian or at least non- or anti-Austrian.

1020
01:20:32,832 --> 01:20:37,832
But from what I read of his stuff, it's not inconsistent with what the Austrian
school has to say.

1021
01:20:37,832 --> 01:20:44,832
I think his focus is just a little different and more on the financial side,
financial mechanics rather than broader economic stuff.

1022
01:20:44,832 --> 01:20:45,832
But anyway…

1023
01:20:45,832 --> 01:20:47,832
Yeah, it is really cool.

1024
01:20:47,832 --> 01:20:53,832
The Minsky people are sort of like post-Keynesian, and that might lead you to
believe that they were somehow affiliated with Keynesianism.

1025
01:20:53,832 --> 01:21:05,832
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.

1026
01:21:05,832 --> 01:21:08,832
It's not like just an equilibrium where things stand still.

1027
01:21:09,832 --> 01:21:14,832
It's just this cyclic thing, and they don't really borrow this.

1028
01:21:14,832 --> 01:21:17,832
But yeah, macro is like in a weird position.

1029
01:21:17,832 --> 01:21:35,832
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.

1030
01:21:35,832 --> 01:21:42,832
So instead of being this well-behaved thing that you can do macroeconomics with,
it's not a well-behaved thing at all.

1031
01:21:42,832 --> 01:21:55,832
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.

1032
01:21:55,832 --> 01:22:04,832
And it's actually shocking how clear the mistake is and how clearly correct he is.

1033
01:22:04,832 --> 01:22:14,832
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.

1034
01:22:14,832 --> 01:22:21,832
And they might think they do, and there are a lot of easy ways to get fooled by that
type of thing.

1035
01:22:21,832 --> 01:22:28,832
At the same time, it's a shame to reject human – it's nice to be conservative in
general.

1036
01:22:28,832 --> 01:22:36,832
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.

1037
01:22:36,832 --> 01:22:44,832
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.

1038
01:22:44,832 --> 01:22:52,832
But with macroeconomics in particular, it's just so complex and it's so different
from microeconomics.

1039
01:22:52,832 --> 01:23:02,832
It's actually totally, totally different, and I think the focus of the Austrian
school on micro is much better.

1040
01:23:02,832 --> 01:23:13,832
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.

1041
01:23:13,832 --> 01:23:16,832
Exactly, just remain agnostic about the macro.

1042
01:23:16,832 --> 01:23:20,832
Well, sorry to get us off track, but a great response and a whole –

1043
01:23:20,832 --> 01:23:22,832
Is that craft macro?

1044
01:23:22,832 --> 01:23:26,832
A whole discussion of its own. We've got about two minutes until break.

1045
01:23:26,832 --> 01:23:37,832
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.

1046
01:23:37,832 --> 01:23:42,832
Not dishonorable because he's a bad man, but because he was a political prisoner of
the United States federal government.

1047
01:23:43,832 --> 01:23:48,832
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.

1048
01:23:48,832 --> 01:23:58,832
But I want you to talk about some of the cool – how was it put? Applied predictions
that you list on your website.

1049
01:23:58,832 --> 01:24:07,832
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.

1050
01:24:07,832 --> 01:24:09,832
Exactly.

1051
01:24:09,832 --> 01:24:11,832
Was that Erwin Schiff?

1052
01:24:11,832 --> 01:24:13,832
That was George Carlin.

1053
01:24:13,832 --> 01:24:16,832
George Carlin. Okay, yeah.

1054
01:24:16,832 --> 01:24:40,832
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.

1055
01:24:40,832 --> 01:24:52,832
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.

1056
01:24:52,832 --> 01:25:04,832
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.

1057
01:25:04,832 --> 01:25:12,832
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.

1058
01:25:12,832 --> 01:25:25,832
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1059
01:25:25,832 --> 01:25:32,832
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1060
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1061
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1062
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1063
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1064
01:26:22,832 --> 01:26:32,832
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1065
01:26:52,832 --> 01:27:05,832
Alright guys, welcome back to the final segment of The Crypto Show here on Logos
Radio Network on this lovely October 21, 2015.

1066
01:27:05,832 --> 01:27:11,832
And we're speaking with Paul Sztorc of Truthcoin and Truthcoin.info.

1067
01:27:11,832 --> 01:27:14,832
It needs to be about 20% cooler.

1068
01:27:14,832 --> 01:27:19,832
Oh, it will be. It's already super cool. It's going to be super cool times, too.

1069
01:27:19,832 --> 01:27:29,832
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.

1070
01:27:29,832 --> 01:27:48,832
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.

1071
01:27:48,832 --> 01:27:49,832
Go ahead with that.

1072
01:27:49,832 --> 01:27:55,832
Well, I don't want to get anyone in trouble or anything, but there's this test
question at Yale.

1073
01:27:55,832 --> 01:27:58,832
Don't say it. I'm sorry. If you don't feel comfortable saying it, you don't have to
do it.

1074
01:27:58,832 --> 01:28:02,832
No, it's nothing like that. It's just for anyone to over-interpret it.

1075
01:28:02,832 --> 01:28:03,832
Fair enough.

1076
01:28:03,832 --> 01:28:21,832
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.

1077
01:28:21,832 --> 01:28:36,832
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.

1078
01:28:36,832 --> 01:28:51,832
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.

1079
01:28:51,832 --> 01:29:03,832
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.

1080
01:29:03,832 --> 01:29:18,832
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.

1081
01:29:18,832 --> 01:29:30,832
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.

1082
01:29:30,832 --> 01:29:40,832
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.

1083
01:29:41,832 --> 01:29:54,832
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.

1084
01:29:54,832 --> 01:30:05,832
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.

1085
01:30:05,832 --> 01:30:12,832
Well, for sure. I'm not going to pretend to know his thoughts, but it's definitely
an interesting situation. Thanks for sharing that.

1086
01:30:12,832 --> 01:30:17,832
But let's get back to some more truth, coin, and prediction market stuff.

1087
01:30:17,832 --> 01:30:25,832
So you talked about applied predictions, and as I listed some of them, ending a
debate, detecting a lie, whistleblowing, portfolio replication.

1088
01:30:25,832 --> 01:30:32,832
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.

1089
01:30:32,832 --> 01:30:40,832
So you don't need to stick to a single yes or no question with prediction markets.

1090
01:30:40,832 --> 01:30:50,832
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%.

1091
01:30:50,832 --> 01:31:02,832
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.

1092
01:31:02,832 --> 01:31:17,832
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.

1093
01:31:17,832 --> 01:31:22,832
So no matter what happens to the exchange rate in the future, you'll be able to
redeem that share.

1094
01:31:22,832 --> 01:31:32,832
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.

1095
01:31:32,832 --> 01:31:39,832
So you kind of end up in dollar land just with this bet that you've taken against
the Bitcoin exchange rate.

1096
01:31:39,832 --> 01:31:44,832
You can also bet against other things that maybe you want to – you're worried about
personally.

1097
01:31:44,832 --> 01:31:53,832
If you're worried about some kind of event happening, which you could even
double-use the election like that or something.

1098
01:31:53,832 --> 01:32:02,832
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.

1099
01:32:02,832 --> 01:32:07,832
But you could also do like an earthquake or something terrible like that.

1100
01:32:07,832 --> 01:32:15,832
You can also – instead of betting against the US dollar exchange rate for Bitcoin,
you can bet on basically anything.

1101
01:32:15,832 --> 01:32:31,832
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.

1102
01:32:31,832 --> 01:32:42,832
You can have an entire financial portfolio without really leaving your computer or
without really leaving this crypto censorship-resistant peer-to-peer world.

1103
01:32:42,832 --> 01:32:50,832
So you can do quite a few things with these – prediction markets were originally
called a different name.

1104
01:32:50,832 --> 01:32:52,832
They were called event derivatives.

1105
01:32:52,832 --> 01:32:56,832
So they're really just these financial derivatives based on events, but the events
can be anything.

1106
01:32:56,832 --> 01:32:58,832
They can be financial events themselves.

1107
01:32:58,832 --> 01:33:07,832
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.

1108
01:33:07,832 --> 01:33:15,832
So you can have this tiny little financial world that kind of exists in this
blockchain world.

1109
01:33:15,832 --> 01:33:42,832
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.

1110
01:33:42,832 --> 01:33:43,832
The old system.

1111
01:33:43,832 --> 01:33:49,832
Right, so there's a lot of easy stuff that Wall Streets wanted to rewrite and
update, but they just can't.

1112
01:33:49,832 --> 01:33:57,832
But obviously, Zafix stops open source software from doing that, so it's the perfect
time.

1113
01:33:57,832 --> 01:34:02,832
Absolutely, and real quick, a quick interruption for our Let's Talk Bitcoin
listeners.

1114
01:34:02,832 --> 01:34:05,832
The magic word is FreeRoss.org.

1115
01:34:05,832 --> 01:34:07,832
That is FreeRoss.org.

1116
01:34:07,832 --> 01:34:09,832
That's the magic word.

1117
01:34:09,832 --> 01:34:13,832
All right, well, yeah, and so I think that's interesting.

1118
01:34:13,832 --> 01:34:28,832
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.

1119
01:34:29,832 --> 01:34:41,832
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.

1120
01:34:41,832 --> 01:34:57,832
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.

1121
01:34:57,832 --> 01:35:01,832
And so I guess when you say stuff like portfolio replication, you kind of touched
upon it.

1122
01:35:01,832 --> 01:35:08,832
You can basically create like an index fund for, say, the S&P 500 if you wanted to,
like create your own index fund.

1123
01:35:08,832 --> 01:35:09,832
Is that about right?

1124
01:35:09,832 --> 01:35:10,832
Yeah, exactly.

1125
01:35:10,832 --> 01:35:18,832
As long as the real financial world still exists somewhere, you don't need – it can
be a one-way street of information.

1126
01:35:18,832 --> 01:35:30,832
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.

1127
01:35:31,832 --> 01:35:38,832
And then you basically have copied the entire thing even though you're not literally
buying these index funds.

1128
01:35:38,832 --> 01:35:41,832
You're not literally buying these companies or investing in them.

1129
01:35:41,832 --> 01:35:45,832
As far as you're concerned, it's the exact same experience.

1130
01:35:45,832 --> 01:36:00,832
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.

1131
01:36:00,832 --> 01:36:04,832
It's kind of very interesting as long as there's one guy.

1132
01:36:04,832 --> 01:36:16,832
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.

1133
01:36:16,832 --> 01:36:20,832
It just looks at what Wall Street is doing and just settles everyone up.

1134
01:36:20,832 --> 01:36:24,832
People bet out of sight, sort of like a bucket shop or something.

1135
01:36:24,832 --> 01:36:38,832
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.

1136
01:36:38,832 --> 01:36:44,832
And that could feed back even into the regular financial system, and that's the
beauty of it.

1137
01:36:44,832 --> 01:36:53,832
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.

1138
01:36:53,832 --> 01:36:57,832
Yeah, these things really have a huge benefit where there's scale.

1139
01:36:57,832 --> 01:37:05,832
So, like electing the next president, like president versus unemployment rate as I
mentioned before.

1140
01:37:05,832 --> 01:37:12,832
But something like when will the Federal Reserve raise interest rates, like talk
about insuring against that.

1141
01:37:12,832 --> 01:37:17,832
Like that would be something that lots of people would be interested in doing.

1142
01:37:17,832 --> 01:37:19,832
Oh, very interested in doing it.

1143
01:37:19,832 --> 01:37:24,832
That would be a cool thing to watch millions of dollars being wagered on.

1144
01:37:24,832 --> 01:37:28,832
Absolutely. Well, we've got a minute and a half left, and it's been a great
discussion.

1145
01:37:28,832 --> 01:37:31,832
I really want to have you back because you're a fascinating guy.

1146
01:37:31,832 --> 01:37:37,832
Truthcoin is a fascinating platform, and of course just prediction markets are a
fascinating topic.

1147
01:37:37,832 --> 01:37:43,832
Will Truthcoin be offering its own marketplace or exchange for prediction markets?

1148
01:37:43,832 --> 01:37:53,832
So, Truthcoin is like a protocol, sort of like Bitcoin, and thanks to the invention
of sidechains, which lots to talk about there.

1149
01:37:53,832 --> 01:37:57,832
But this protocol can use Bitcoin as its currency.

1150
01:37:57,832 --> 01:38:04,832
So both of them, the Bitcoin protocol and this Truthcoin protocol will both use the
Bitcoin currency.

1151
01:38:04,832 --> 01:38:13,832
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.

1152
01:38:13,832 --> 01:38:24,832
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.

1153
01:38:24,832 --> 01:38:30,832
Well, that's pretty neat. Well, Paul Sztorc of Truthcoin. Any final thoughts, Paul,
in the 30 seconds we have?

1154
01:38:31,832 --> 01:38:50,832
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.

1155
01:38:50,832 --> 01:38:56,832
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.