The invention of Bitcoin by Satoshi Nakamoto will be the most disruptive technology to hit the financial sector ever since humans started using money that is no longer backed by a valuable commodity such as gold or silver.
In this video, Leon Fu and I discuss how bitcoin has turned money into a software and how it will impact our lives as well as the financial sector.
Bitcoin has now made it possible for money to be programmable. This means we can now set rules and conditions on how our money is to be used.
Imagine passing on an inheritance to your child and the child can not take control of the money until certain conditions are met such as:
- Your child has to graduate from a recognized university.
- Your child is over 21 years old.
- Your child can not have a criminal record in the FBI database.
The bitcoin network can easily verify all these conditions by checking with the university graduate lists, county birth certificates and FBI databases, etc. to before allowing your child control of your inheritance.
In this video, Leon Fu will share his thoughts on how Bitcoin has turned money into software:
Tai Zen: What’s up, guys?
This is Tai Zen again with Leon Fu.
We’re from PrisonOrFreedom.com where we talk about the techniques, the tools, the strategies and the technologies that are available to help people find freedom in their health, their wealth, and relationships.
In this particular episode, we’re going to talk about the wealth aspect and in this particular episode we’re going to talk about how everything is being converted to software nowadays.
By the way, if you guys didn’t know, Leon Fu here is one of the top iOS developers in the world and he’s going to be talking to us about how everything has been changed to software, many things in our lives now, it’s to a point where money is being converted to software.
So could you talk about that?
Leon Fu: Well, yeah. This has been going on for the last thirty, forty, fifty years. Everything has been – software’s at the core of everything that we’ve done.
Tai Zen: Are you saying that just because you’re a programmer and you’re biased towards software?
Leon Fu: No. I probably am biased to it but it’s happening. I could be biased but that doesn’t make it any less true.
Tai Zen: Right.
Leon Fu: We have examples – like the typewriter is now software.
Nobody uses a typewriter anymore. Why not?
It’s a piece of software now called word processing.
Letters are now software. Its email.
Mail has become software. Pictures have become software.
Tai Zen: It’s all zeroes and ones, jpeg files, png files.
Leon Fu: It’s all digital. It’s all data right now. It used to be film.
Tai Zen: Basically what you’re saying is there are a lot of things that’s physical that’s been converted to software.
Leon Fu: Music.
Tai Zen: MP3s.
Leon Fu: Right… Books. Books are now software.
Tai Zen: Kindle.
Leon Fu: Kindle, right. Everything. Art, right? You could draw on a tablet.
Tai Zen: Yeah, I grew up with oil paintings and all kinds of stuff but I prefer to do Photoshop now.
Leon Fu: Yeah.
Tai Zen: You talk about now, money is now becoming software.
Leon Fu: Yes.
Tai Zen: That can be confusing to a lot of people that are not technically savvy like you are, so could you try to break it down in non-technical terms of how money is being converted to software now?
Leon Fu: Money is an idea.
It has value because we as society has assigned it value.
We’ve taken things that are valuable to us and exchanged it for money which really has no intrinsic value for us.
Tai Zen: From both our experience, anything can be money. This remote control can be money.
Leon Fu: As long as somebody who has something that you want will accept it as payment –
Tai Zen: Yes, it’s money.
Leon Fu: It’s money. Now, not everything is equally good as money – like the US dollar, if you’re in America, it’s better money than most things but you can pay in many different ways.
You could pay in gold coins if you want to.
Tai Zen: In prison, gold coins don’t have much value. Cigarettes and coffee have more value.
Leon Fu: Yeah.
Tai Zen: So that can be used as money.
Leon Fu: Anything can be used as money because money is a means of exchange and it’s a unit of account with stored value.
All of this is just data – all of this can be stored in a computer because its information and one of the things Bitcoin has done is turned it into software but in fact, the U.S. dollar is software.
Tai Zen: Yeah, it’s all digits.
Leon Fu: It’s all digital now.
Tai Zen: They’re printing, what, $85 billion a month?
Leon Fu: That’s not being printed it’s just numbers entered into a computer.
Tai Zen: How do you get one of those computers where you just have $85 billion dollars?
Leon Fu: You talk to Ben Bernanke.
Tai Zen: The Ben Bernanke?
Leon Fu: Yeah, the Ben Bernanke.
Tai Zen: I think next week or next month, were going to talk to Mr. Janet Yellen.
Leon Fu: Yeah, that’s right.
Tai Zen: Or at least a lot of people refer to her as Mr. Janet Yellen.
Leon Fu: Janet Yellen… yes. What makes Bitcoin special isn’t that its digital money – we use digital money, most of our money is digital.
Tai Zen: It’s rare that I even use cash.
Leon Fu: Yeah and most of the U.S. dollars in existence do not exist as physical bills and coins, most of it is checking accounts – it’s all digital anyway, but Bitcoin, what makes it special is that it’s decentralized.
It’s a public ledger that can track who owns what and reach agreement among people or computers that don’t know each other or don’t even trust each other, and it can keep track of that.
That’s its main innovation.
Tai Zen: And that’s what you mean that money is becoming software now?
Leon Fu: Yes, it already is software.
Tai Zen: So whenever you talk about the different alt coins, what I call copycat coins; when you talk about the different copycat coins, basically, their success or failure depends upon the quality of their software.
Leon Fu: I think that that’s one factor.
Ultimately, it depends on:
- Do people accept it?
- Do people use it?
And one factor of that is the quality of the software.
I’m not saying that’s the only factor but it’s definitely one factor.
Tai Zen: That makes people want to use it?
Leon Fu: That’s right.
Tai Zen: Okay.
Leon Fu: The more people that use the currency – it doesn’t matter what it is, right? The more people that use the currency, the more value that it has.
Tai Zen: Let’s take for example the top two crypto currencies right now which are Bitcoin and Litecoin (LTC).
Obviously, Bitcoin has a huge lead, 5 year lead, 4 or 5 year lead in front of Litecoin (LTC).
So basically what you’re saying is that in order for Litecoin (LTC) to succeed – and just by the way, were both investors in Litecoin (LTC) so that’s a disclaimer out there.
We’re not saying you should buy or not, we just make it known.
So basically, in order for Litecoin (LTC) to excel, to get where Bitcoin’s level is or surpass it…
One, it has to be adopted by people.
Leon Fu: Sure.
Tai Zen: Businesses and regular people need to use it and number two, its features have to outweigh Bitcoin.
Leon Fu: I think so.
I think, ultimately, features will – but I don’t think it’s just features.
There are plenty of examples in the market where the better product lost because it’s a market.
Tai Zen: For example, Wordperfect then Microsoft Word.
I’ve used Wordperfect for… I think, its way better than Microsoft Word.
Leon Fu: Yeah, but nobody uses it.
Tai Zen: Yeah, I don’t know. I guess better marketing?
Leon Fu: Well that’s a different topic.
At the end of the day, it’s going to be the free market that decides. It’s going to be whether or not there’s no government behind these coins saying you must use it.
Tai Zen: This is actually a real, free market.
Leon Fu: Yeah, this is a real, free market.
People are going to choose which cryptocurrency they’re going to use and people have that choice.
- Whether they buy it…
- Whether they pay with it…
- Whether it gets accepted…
There’s no government saying if you live in this country, you must accept our money.
So it is a free market and we’ll see who wins.
Tai Zen: Okay, alright, we’ll see. We’re living in some bright times.
Leon Fu: Yes, exciting times.
Tai Zen: Alright, well thanks for watching this episode, guys. If you guys enjoyed this video or have any questions or add to the conversation, please leave your comments in the comments section below.
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