14. Payments, Part 2

MIT 15.S12 Blockchain and Money, Fall 2018
Instructor: Prof. Gary Gensler
View the complete course: ocw.mit.edu/15-S12F18
KZbin Playlist: • MIT 15.S12 Blockchain ...
In this video, Prof. Gensler discusses the lessons that can be drawn from the challenges of blockchain-related payment applications. Other topics include cross-border payments, and permissioned vs. permissionless applications.
License: Creative Commons BY-NC-SA
More information at ocw.mit.edu/terms
More courses at ocw.mit.edu

[@therecyclingguy256]

Prof.GENSLER makes the topics clear and open to discussion. What an honor this must have been to have been there discussing this.

[@layb2479]

Yeah, I would love just to sit there and marvel how great this class is. Sometimes, I still cant believe I'm getting this for free. So thanks Prof Gensler, thanks MIT and thanks KZbin!

[@jeffreyaryan9472]

instablaster.

[@randomly-genrated]

This didn't age well.

[@therecyclingguy256]

@@randomly-genrated Sure didn't.

[@therecyclingguy256]

@@randomly-genrated FWIW the session breaks down the fundamentals behind digital payments.

[@gotdotnet]

14/24 done and what a journey it has been! This course proves that detailed reading and discussions yield much deeper insights than shortform reading on social media and newsfeeds. Also, has anyone else noticed how Prof. Gensler looks like Mr. Burns from the Simpsons?

[@Dracut]

1:05:06

[@texasblockchaineducationpr2275]

MIT level education for free. The internet is a beautiful sometimes. I look forward to seeing the next 50 years of Blockchain and .cryptos. What a time to be alive 💎🙌🏾.

[@priyakhare9597]

Felt So good @46.29 , when Brodish spoke of UPI of India , it is very successful innovation in payment space in India.

[@simonbruns6956]

I would love to see a debate like this nowadays... COVID has changed the perspective for many people!

[@auntjenifer7774]

What you mean woken up to the fact govt is way way way way overreaching !?

[@bradynields9783]

1:12:35 I think the cost for remittances is about 600 bp and can take days. Once liquidity is built through the Australian dollar and the Mexican and Philippine peso XRP can be used to move larger and larger size payments.

[@bradynields9783]

1:06:53 Crypto is known to have volatility but if the transaction time is a few seconds it seems like a better option than days or a week of exchange rate fluctuation.

[@sanmorgan8255]

True

[@lifevacay]

Around 28:00 they talk about short selling and selling before borrowing. Hence naked shorting and abuses from the hedgies which has been a hot topic of late.

[@justcharlie818]

Lmao, dude, Michael Arington Moved 50 million dollars with xrp ,cost was a whopping 30 cents and entire process was completed within mins

[@NazriB]

Lies again? HDB Payments

[@dutchgus]

I still can't believe this material is free, as well as the lecture notes and reading material...

[@visiontranscend60]

Umm, where are the lecture notes?

[@djregisterx7x]

@@visiontranscend60 same question

[@shenbagachella1041]

@@visiontranscend60 u could check the link in the description and access the slides presented in the lecture.

[@campusseoul]

Gary Gensler has been doing a great job encouraging critical reasoning skills.

[@rodrigodiaz1321]

MIT students getting called out for texting during class 🤣 Maybe they were buying crypto

[@texasblockchaineducationpr2275]

Outstanding! 🤣

[@sanmorgan8255]

regular students generally have insufficient resources to buy crypto.

[@btcforall.crypto3864]

Wow !I sure do appreciate you taking your time and teaching about the blockchain, crypto thank you

[@berajpatel8081]

real time payments by the federal reserve would change the securities market for certain .... example shorting securities, reducing naked short selling but reduction in delayed settlement would do that. Blockchain could record the finality of the settlements, reducing historical paper trade by ledgers.

[@goldeq8521]

Thank you for your class , amazing.

[@AmitabhShrivastava-jn9zh]

Prof Gensler: you might want to study the "India Stack", which is = Identity + real-time Payments + data empowerment (includes financial inclusion)

[@javiasilis]

There's a comment on @36:04 about interesting use cases of the blockchain that you never thought about, such as enforcing a smart contract with your employer and getting paid in X amount of years. One of the best use cases for that idea would be Stock Vesting. Generally, when you start a company, you should vest your stock (means that your shares won't be fully given to you until a certain period of time passes), and this could be pretty neat way on doing that.

[@julkiewicz]

Actually this also has some serious flaws. You get stock vesting because you need to satisfy certain criteria to get the actual stock - e.g. work for the company for a certain period of time and fulfill your duties, reach milestones, KPIs. And you might breach your contract and then you don't get it. And whether you will or won't breach the contract is something that cannot be predetermined, much less expressed in a smart contract. It's way too complex for that, even for a basic case.

[@javiasilis]

@@julkiewicz True that. Legal stuff is definitely complex and I can totally see those edge cases happening more often than not.

[@lukaswalden8183]

Isn't that already happening today? A lot of compensation is based on stock options (i.e. I can only sell my options in x years) etc.?

[@onetwothree4148]

43:00 is the closest anyone got to mentioning the main benefit of cryptocurrency: decentralization. What if you live in a country that is among the best legal systems in the world and you want something even better? What if you don't want to rely on your contracts being subject oligarchy rule and biased legal intervention? The main benefit to decentralized exchange is for individuals. The cost of this advantage is paid by the existing institutions of power. Of course the US government and visa don't want to relinquish the power of final settlement- that's what makes crypto so amazing.

[@rosamodel3952]

Exactly decentralization, democratization, freedom

[@andso7068]

It's a form of stockholm syndrome. People are so used to being powerless that they've come to accept it and condemn any opposition.

[@lihuajiang1771]

@@rosamodel3952 Are Coinbase and OpenSea are centralized institutions/systems and they have (public or private) market cap with $10B+?

[@snaggythethird2013]

Exactly finally someone says it! Gensler is doing an amazing job here but all lectures are merely focused on status quo fit, while the overall discussion should be more from the point of „if we disregard where we are today and used this for a more just economy and society, what could we reach?“

[@fabriceramazani465]

There's a link in the description where you can find lectures slides and videos + the readings, and for all the lectures. This is unbelievable!!!

[@krihanek117]

My guess is that in 2028 Bitcoin will be worth $200,000 USD

[@simonexsala]

Make it 2024

[@seis8522]

@@simonexsala We can have 200K USD at the end of this year (2021).

[@lawniczakjohn]

24:57 Regarding T+1, I think as of March 2023 SEC just passed this to be implemented in 2024; Hester Pierce being a dissenting voice.

[@dpriest1982]

timestamp 17/03/2021 BTC price is USD55,033...

[@lawniczakjohn]

42:32 Banks filing patents on blockchain fractional banking… interesting… fractional reserved banking buzzzzz… 1:00:56 Larry Lessig (I believe) opines on patents being filed more as barriers set by those filing them.

[@AmadeoBrandsONDeFi]

DeFi was still not really adopted like it is today ... Would love to have a discussion about #DeFi with the professor 💪🚀🔥

[@SilverVillageGaming]

Now represents SEC I just found this out today

[@stressfree9780]

Wow amazing

[@jackdaniels5262]

I wonder what the students is saying now that BTC price is 60k, just after 2 years from this class discussion.

[@andso7068]

I think he ultimately believes that it'll go to 0 so volatility especially in only 3 years doesn't really say much to bears.

[@AmitabhShrivastava-jn9zh]

Prof Gensler: I missed watching (if it was covered) the impact of Geo-politics on crypto

[@rb8913]

XRP

[@ThuyPham-lr5dc]

They won’t talk about XRP, biggest tip-off you need...

[@bradynields9783]

1:18:20 Hopefully in the future we will be able to vote on money. Or I guess we could just use the money we prefer and cast our votes that way....

[@mrfatah4510]

30 something participants think BTC will be lower than 6300ish in the 20th anniversary/birthday. It is still 2021 June 21 though, and the price of BTC is roughly 30K USD.

[@ethanf.6848]

$70,000 2 years later.

[@TheDailyCheddar]

As long as they have the ability to print BTC has no ceiling.... hahaha bitcoin to $1 billion

[@naturaljuice93]

Bullish for XRP at 1:05:00+

[@1Likeabaws]

Why? If XRP is just an bridge coin between fiat currency, why would they want XRP to have high volym?

[@SkyHoustonCrypto]

Present for class

[@i123456987654]

wow, MIT has a vending machine that accepts bitcoin and litecoin? so cool

[@lawniczakjohn]

Pretty awesome!

[@Daisyworld234_]

little did he know that the meme coins boom will come in 2021.

[@TinoTatum]

Where is Alin at?? 5:00

[@vinanciomiranda7855]

41:45 Thanks to Covid this will be accelerated

[@gianghoang9049]

The price of bitcoin as of Oct 2021 is above $60,000 USD, for your information, professor Gary Gensler!!

[@stockmed88]

And now? :)

[@RacingFactions]

the BTC price in sept. '22 is about $19k... i bought my first ever cypto Algorand at 0.35¢ yesterday

[@toulasantha]

Price of Bitcoin is $60000 today. Trillions of dollars in values

[@chautrongan6183]

Why did American Coin (AC) as same as Pain Coin today? Helping me, please Sir & Madam. My God?

[@1Likeabaws]

What happends if the electricity cost goes up higher then the actual reward?

[@julkiewicz]

Wouldn't higher electricity costs cause nodes to leave the network which would in turn lower the difficulty and consequently cause the cost to go down as well? It's kind of a negative feedback loop, no?

[@marielosjauregui9065]

The 2.25 dollar coffee at starbucks is my girl, I get a shot as well although I add a couple of extra shots

[@rodrigodiaz1321]

In just a couple years from the date of this class, $btc is X6

[@mateusz3162]

I have doubt about BTC payment success there but they will certainly appreciate some good old paper dollar in both Africa and India

[@DotNetRussell]

1:07:00 pretty sure he said Bid Ask Spread but i'm going to pretend I heard him say Big Ass Spread because it's equally true

[@andreas2672]

35:00 2 years later defi summer happend.

[@sunwang3076]

The answer is over 60000 and there is the smart one who will approve the first Bitcoin ETF on Oct 17th 2021.

[@heisenberg6400]

Hilarious that 30% of the class thought Bitcoin would be lower in 10 years. Proof that intelligent people can be widely, and almost inconceivably wrong lol

[@eddybash1342]

No slide ?

[@mitocw]

Lecture slides are available on MIT OpenCourseWare at: ocw.mit.edu/15-S12F18. Best wishes on your studies!

[@curryeater259]

@@mitocw You guys are awesome. Thank you.

[@flourishomotola5306]

@@mitocw Thnk you

[@biggnick15]

Gotta love that Priya’s husband, who isn’t part of the class, decided to show up and tell everyone that cryptocurrencies aren’t needed because MasterCard can handle it 🙄🤦‍♂️🤡

[@Perfecto7236]

Lol I laughed at that part. It's like the fossil fuel industry telling people electric vehicles aren't necessary cuz we've had 40+ years of the combustion engine technology.

[@bobsondugnutt7526]

If mastercard can decentralize and render itself censorship-resistant, then bitcoin might not have the value proposition it currently makes use of. If bitcoin only ends up existing to push large financial entities to be more responsible and transparent, it's totally worth buying into.

[@amukherjee424]

wonder how Priya's husband feels today

[@unnamedexodus3902]

Always good to hear both sides of an argument.

[@DotNetRussell]

To the Mastercard guy. "You don't need a crypto or a blockchain. You can do it with today's systems" Yes, we know. We reject your system. It's bloated, expensive, slow and run by corrupt centralized entities. Payment networks like mastercard and visa are dinosaurs.

[@shubhamjain6471]

4:24 This is May 2024 and the BTC price is 64k USD and I think it’s gonna be 100k USD by the 20th year anniversary/birthday😂

[@johnraquazamoss1700]

I’ve never made a comment on a KZbin video, but when I first discovered Bitcoin freshman year of highschool (2012-2013) it didn’t seem possible that Bitcoin could reach $1,000 In 10 years I could see $1,000,000 without any hesitation. Maybe within 5 years that can be reached from today’s date. People forget how big the world is and how fundamental the invention of Bitcoin is. Hope someone openminded finds this in the future- good luck everyone

[@lawniczakjohn]

27:23 Regarding selling and borrowing, versus borrowing and selling, seems like he is almost admitting here that market participants don’t want a free and fair market because T+2 gives them a lot of wiggle room… at least that’s how I understand the subtext; then again the whole system is B.S. when there are failure to delivers. Why short when you can FTD? 😂

[@logisticsandcrypto]

You can be a president if green light for Blockchain, Bitcoin,Eth, Etc.

[@dannys9425]

I'm the idiot who put his hand up first

[@Dracut]

What year was bitcoin btc $6300

[@Bartoleoo]

2018

[@Dracut]

29:40 Come back to

[@xrpina7652]

did you call bitcoin a security gary (a coin a Share)

[@neelmoradiya1389]

39:40

[@lireeautorepairdiy7580]

关于2018年比特币价格猜想，我猜50万美元/枚。简单逻辑是，比特币成为加密货币的基石，加密货币通胀，比特币存量固定的情况下，价格就会一直涨。

[@Timbo9166]

How about 64K by 2021, I bet no one got that right.

[@frankzifeng]

bitcoin up to 100K for sure

[@TheDailyCheddar]

As long as they have the ability to print BTC has no ceiling.... hahaha bitcoin to $1 billion

[@mark_tapia]

There are way too few views on these videos

[@KADU1978]

TIMESTAMP - 2021, Mon, Apr 26, XRP = $1.09 Congrats to all hodlers!!!!

[@Midnightspecia1]

Don’t you dare sell that theta.

[@dame5918]

46k price of btc and i was right… 65% of class was right… one dumbass said zero, his grade should have been zero… omgggg that guy was wrong

[@ThuyPham-lr5dc]

Hillary...nooooooooooooooooooooooooooooooooooooooo

[@andsama]

in 2028 , it will be 230k

[@damienhooper8783]

And the rest

[@Dracut]

12345678 40 minutes 39 seconds from Back to the spot

[@inkandsoles5038]

The maniacal surgeon phongsaly mend because bumper recently untidy toward a level thunder. hateful, disturbed hardware

[@snaggythethird2013]

That Alin Computer Science guy is really starting to rub me the wrong way. In the beginning I merely considered him to be a critical voice considering he’s taking his PHD but damn does he come across arrogant by now. He seems to view everything exclusively from a technological point of view, but there’s economics, behavioural psychology etc.. I don’t know but where’s some humbleness in predicting the future of crypto? No one can tell for sure and his condescending way of estimating Bitcoins value to be 0 in ten years time - well what can I say? We’re 4 years into the prediction and if he had been a bit less arrogant abt his comments overall, his guess would seem less bitter today. Didn’t age well…

[@kedrickstahley8247]

Vote for Trump!

[@Max47340]

Boooring! Painful to sit through, totally not interesting, not engaging! The professor gets an F grade, sorry 😢!