Crypto In The Long History Of Private Money

[@PBoyle]

Thanks to our growing list of Patreon Sponsors and Channel Members for supporting the channel. www.patreon.com/PatrickBoyleOnFinance : Marc De Mesel, Annie Chen, Nate Stapleton,Timothy Baird, WIlam, Hernan Merino, Random Encounter, Nieuwsbrief Ikwil, Bee Positive Consulting, hyunjung Kim, John Cadena, Ian Tracey, Callum McLean, Oscar, Simon Pena, Ed, Pavle Obradovic, Erik Van Ekelenburg, David O'Connor, Zak Patterson, Pjotr Bekkering, Alex, Robert W Proudfoot, pooh shmoo, Robert Muller, Andre Michel, Ivan Iliev, Gopaljee Atulya, Milan Tomic, Mark Hooker, Artem Vasenin, P H, Sebastian, Michal Lacko, Peter Bočan, Michael Pierce, V Jordan, Gil, HalfwitHam, Mark Brophy, Patrick T, David Urdenata, Juan Valdez, Bruce Roberts, Chad Norman, Bruce Roberts, Shamikh Rana, Friday Guy, Marc De Mesel, Augusto Ramos, Soy Boomer Doomer, Bob Slartabartfast, Robert Feiler, Camil Dbouk, Erik Montesinos, Matthew Loos, Az Indragiri, Aman Bali, Lautaro Parada, Pratap, Deborah Joseph, Robin Sung, Kurt Johnston, Dominik Auerbach, Gurmeet Kaushal, John Hall, Dara Mo, Josef Goergen, Wilbert Cheng, Daniel Talero, Jaroslav Tupý, Trevor Lucey JB Weld, Alex, Sunny, Carlos Figuera, Peter Pomelov, Null065, Rick Thor, MeBerzerk, Henry Nguyen, Sola F, The Collier, Carlos Mejia, J Wadia, Bitcoin OG, easy boekhouding, Albert, Eugene Jung, Oisin Quinn, Daniel Cervini, Jonathon Yong, Iris Ji, Emil Nicolaie Perhinschi, Charles, Gerard Scott Eli Auto, Excks, Michael Li, Par Hedman, Praveen Mishra, Gerard Scott, joel köykkä, Areeb Ahmed, David Wang, Yazan Qaraqish, Rodolfo Cornetti, Daniel Winroth, johnny, Nick Jerrat, Chris Houston, Alastair Currie, Robert Griffin, Andrei, zizi Golo, Fab Vida, Constantin Petrenco, pawel irisik, NotAScam, James Halliday, 22 Dust, Carsten Baukrowitz, Heinrich, Arron T, Ben Brown, Stephen Mortimer (to The Moon), Ryan B. Hicks, B S, Liam, Logan Vrankovic, William Heaton, Paul McCourt, Daniel, Aaryan Koura, mikhail tyurin, Steven, Christopher Boersma, Dave Cooke, Ulf Lundblad, Dorothy Watson, Greg Blake, Simon Bone, Livermores Quant, The Collier Report, Scott Gardner, The Man Koala, Brian McCullough, Daniel S. Smith, Finance Student, Milton Danielsson, Julie, Mohammad Rehman, James Wallace, Daniel Poellmann, Edosa Odigie, Dixon Yuen, joey smit, Marek Novák, Stamatis Drepaniotis Michael Smith, Etienne Cordonnier, Ahmed Hamadto, Chris Davey, Mike Farmwald, Michael A. Mayo, Lachezar Georgiev, Kamet Batra, Bradley Johnson, Sagar Gudi, Michael Chessar, Kate ATL, Tong Cheung, Lady Dje, James Barnes, Chris Hall, Kurt Johnston, ICBM Catcher Juan Valdes, KernelSC, Josh Garcia, Linn Engström, Veltsh, Konrad P-kala, Pastacat, Adam Vorting, Matthew McQuade, Christopher Lesner, freebird, Matt L, Kenneth WedMore Lund, erfective, Jason Young, Jonathan Kopnick, Peter Hendrickson, steel, MM420, Bastien, Tom Willett, Chris Whitehead, Anil Jason, Hany Abdulsamad, JOJO, Jason Butterley, AS7, Greg Thatcher, John Simpson, Ezekiel Templin, Robert M Daily, MrLuigi1138 Grecia Bate, Leszek Frankowski, Nam Nguyen, Goutham, Karim THIBAULT, C, David R. Ingemi, Robert Wave, Dmitri Alexeev, Aaron Rose, Ethan Hernandez, Brett Turley, Claude Chevroulet, Adrian, Stephan Marosvary, Yigit Yargili Louis Julien, Jan Lukas Kiermeyer, Gearoid O Connor, Fredrick Saupe, Subliminal Transformation, Jason Horton, Alex McMahon, Adi, Ben, Kurt Mueller, Joaquin Madruga, Janusz Wieczorek, Federico Viscomi, Corgi, Mahdi, Burgerinn, Quinn Cone, Sam Doyle, QiKaiQian, Stephen, Joshua Rosenthal, Timotej Zat’ko, Frank Yashar, Michael Smith, Betterlife, Emilian Marius Tudor, Julian Aßmann, Cormac, Max Kaye, Ian Shearer, Theodosius the Elder, Michael Kopřiva, Tinni, Goran Milivojevic, chris, Daniel Mooney, Joe Del Vicario, Scooby Snacks, Alexandre Mah, ultima9, Norman A. Letterman, danni Pedersen, ranjan datta, maRiano polidoRi, Andrew Steinborn, Stephan Prinz, Gary Yrag, Federico Satta, Mark, Mattia Midali, Matthew Berry, Ann Williams, George Haberman, Jay T, Gabor, Florian Haas, Shivendra Saklani, Zachary Tu, Jeffrey, Lane Alan Deyoe, Chett Flynn Jonathan Horn, Andrei-Gabriel, Mo Herbert, manuel Rodriguez, Lane Andrews, Justin Thuet, Olaf Thiele, Ivan Ilaev, Todd Gross, Andrea Russo, Douglas Caldwell, Devere, Wade Hobbs, Volodymyr Palii, James Hoctor and Yoshinao Kumagai

[@lamalien2276]

Cryptos are much further along at this point than just bitcoin and eth. Bitcoin will probably be used like gold and eth will use it's blockchain for services that build on it's tech (like another Microsoft). There will be different currencies for different purposes, like Vchain for product verification. Also, smart contracts can automate the services done by credit cards (like rewards programs) much cheaper. They are even starting to do derivatives now. I dare say you really didn't do enough research for this video. Go back and take a look and I think you'll be surprised at what you see.

[@cptrelentless80085]

@@lamalien2276 Nobody is going to use shitty ponzi coins for anything, because they are fundamentally flawed - you either control the currency, and thus the price, by having the most coins, or you do it by having the most processing power.

[@Practicalinvestments]

I was under the impression (and I was young back then when bitcoin was created) that bitcoin was created to be a modern store of wealth and nothing more, really to hedge against inflation and market manipulation and crashes (like 08) so basically acting kinda like gold but with less market manipulation, but I think even bitcoin has mutated and become something even natoshi sakamoto and the development team couldn’t predict

[@Isa.250]

Awesome video! I think there's a strong argument to be made that gift cards fit all the requirements of a private currency. I've actually ran into some folks who are selling Turkish gift to other countries cards at a markup since the price of some services can't keep up with the plummeting TL.

[@MrManny075]

A wise man talk because he has something to say but a fool because he has to say something, so why all this talk anyone can google it no need for this BS

[@damianchang6439]

Patrick, I just wanted to say that in a world of social and media noise your videos are delivered in such a calm, considered manner cut through the craziness with clarity and intelligence. You’re a rare breed especially on the internet these days so, I just wanted to say thank you and for educating us viewers ☺️.

[@Volken321]

I couldn't have said it any better.

[@muokinzangi3067]

Perfectly said

[@jaadotech]

Indeed, so much smoke and mirrors, says exactly what i would say if I knew what he knows! 😊

[@drx1xym154]

@@muokinzangi3067 -- could have been written better, though I think I understand what is trying to be conveyed! Yes, commas* are key! * - Void where prohibited. Your private money will vary.

[@MrTeapots]

I got two ads for "private currency" scams during this excellent video. It's like good and evil fighting for the screen.

[@nielsbishere]

I would say this is more on youtube for allowing scams

[@MrCmon113]

Freedom = evil.

[@JohnSmith-pv3kj]

I can see why you are a visiting professor. You have a great ability to explain concepts in a way that can be easily understood by someone without a great deal of insight in the topic without sacrificing the complexity or depth of the subject.

[@geraldw4471]

It's incredible how you mentioned M-PESA which forms critical part of currency exchange via mobile devices in Kenya. It has integrated very well with the banking sector in the country.

[@Dwightstjohn-fo8ki]

I can imagine this would be needed seriously in remote towns and small village. Even we in the Rockies don't have ALL the Canadian big five banks. My bank is two hours away. Not even a kiosk.

[@mike7920]

I really think the so-called developing countries are going to lead this, I mean when it comes to bringing this to being a means of paying for goods - trust, being willing to adopt - that that need will drive the tech forward. I hope so, then the rest of us can follow!

[@CountingStars333]

@@jfernandez76 I have horse why I need car???

[@angusmcfarlane1225]

In 20 minutes, I learned more about the global, financial 'big picture' than 40 years of reading around. Thanks!

[@soulflame799]

So did I, one of the best videos so far IMO

[@Biskawow]

perhaps you should learn to read then?

[@kristjanpeil]

I'm pretty sure that 20mins has turned into hundreds of hours of Patrick Boyle by now, innit? :)

[@WojciechP915]

One of my favorite bits of trivia is that wampum, originally a native invention, had some inherent value because its pretty and the process to produce it was very laborious so it wasn't an infinite supply. This changed when settlers built steel tools and a mechanized process for quickly making loads of it, causing wampum inflation at the expense of the natives.

[@michaelbraun9750]

I was unaware the settlers automated/accelerated the process and caused wampum inflation with native Americans. But a logical route to go. In Oceania, the stone money used on some islands - a "coin" being a rounded rock weighing several hundred pounds and more - saw a similar phenomenon when an Irishman used a European transport ship to bring in massive amounts of rocks from other islands in the 19th century. And what the settlers did reminds me of childhood times when we collected bottle caps from a local bar and hammerded them into coins... 't was a good time.

[@michaelbraun9750]

@@michaelbizon444 when you have a gold coin in your hand you never know which part of the globe the atoms came from and what people did to others when acquiring them. My now late grandmother sometimes told the story that as a young woman just as the second war had ended in Germany and its aftermath she walked home for some 200 kilometers from where she had been conscripted. She said that on her walk she met a woman, the wife of an SS officer, who had a small bag with her that contained gold teeth taken from the people, (I assume mainly jews), killed in then concentration camps. I'm so glad that so far I haven't had to live through such a time...

[@TK0_23_]

Sorry to say, but that is not true. This did happen, however, in West Africa during European colonization with Akori beads. A glass bead used as currency dating as far back as 300 CE. Europeans were able to mass produce it in factories in Europe and shipped boatloads of it and caused hyper inflation. Wampum was another story. Firstly, the indigenous people did not use it as "money" but as a ceremonial trade good and status symbol. When the English and Dutch arrived they saw its potential for use as currency. However it didn't fully satisfy the definition of money. For instance it was not a real store of value. It also was useless in international trade, only having any sort of value in the north east of the Americas. After the Pequot War in 1638, the tribes along the Long Island Sound, the makers of Wampum, who had been damaged by the war, had difficulty keeping up with Wampum production. Eventually Boston started minting their own coins, (in violation of their charter) and began replacing Wampum as money. It's a little more complicated than that, as things usually are, but that's the gist of it.

[@brianbelgard5988]

The same thing happened in reverse for the gold standard during the Industrial Revolution. It was a fluke of history that the technology being developed during that period (steam powered mining pumps and equipment) also increased the money supply.

[@greenredblue]

My favorite semi-related trivia is that aluminum used to be more valuable than gold. Napoleon's most honored guests ate with aluminum cutlery instead of silver. The electrolytic extraction process eventually flooded the market and turned it into what we know today. In fact, it was only ~100 years ago that aluminum became cheaper than tin, which is why a lot of places still use the misnomers "tin can" and "tinfoil."

[@yourcheapdate4564]

My God, what an avalanche of information! This was incredible. History, markets, human psychology, crypto...way to connect it all, just fantastic!

[@rogergeyer9851]

yourcheapdate: Agreed. What it does for me is increase my skepticism toward BTC, etc, and make me think that the old time wisdom of Buffett, Munger, et al that crypto becomes worthless over time, is likely correct. Not enough to want to bet on that, however. I earned my money. Throwing it away isn't in my play book.

[@yogathan1]

@@rogergeyer9851 my favorite Munger quote is crypto is rat poison squared!

[@Kalarandir]

Clear as ever and without all the hype or hate. Thanks Patrick.

[@brodyalden]

Nothing like an emotionless Irishman to really break down a market.

[@lamalien2276]

No, he simply didn't do enough research before making his conclusions on such a complex subject. That's his bad. The perspective he gives is based on extremely dated information. The truth is crypto is breaking into derivatives, product verification, and smart contracts (automated contract settlement). Also, many cryptos are MUCH faster than credit card networks. Patrick blew it this time.

[@haydendriscoll8474]

@@lamalien2276 sounds like something a crypto investor would say.

[@TheRustyLM]

@@haydendriscoll8474 you mean a crypto cultist. 🤓

[@yogathan1]

@@TheRustyLM Fiat isn't really backed by anything. Crypto is backed by that guy on Craigslist kills people. What a joke and a waste of time! I wish Patrick would do a video on all the characters involved in crypto they are all relatives of Bernie Madoff.

[@ACDC012345678]

Wampum to the moon!

[@patrickroers752]

Wammoonpumm 3x leveraged ETF stake your wampum for guaranteed 150% returns in 🌽

[@briehart-nutter4357]

As an Ithacan, I can tell you that the Ithaca Hour's history is a wonderful and interesting story. Lovely to hear my city mentioned in your video. There are several wonderful lessons to be learned from the Ithaca Hour and it's history.

[@mulemule]

Can you please share some of the lessons? (If not, it's hard to gauge the value/relevancy of such glowing assertions.)

[@lfmsimoes1]

Some weeks ago I watched a video that explained that "airline miles/rewards" (from Delta/AA/Continental) effectively work as digital private currencies... (much like the railroad operators did before)... Learned a great deal of history with this video. Thanks Patrick.

[@tony0x48]

Fascinating. I wasn't really aware of much of the history of private currencies, so I learned a lot today. Interesting side-note; in Scotland, where I'm from originally, bank notes are issued by authorised retail banks rather than the government, so you have several different sets of notes in circulation. Technically, these notes aren't actually legal tender, and I guess they are really a form of private currency. However the banks are required by law to hold reserves equivalent to the value of notes they issue, to guarantee their value. So I guess Scottish currency is basically paper stablecoins.

[@Dwightstjohn-fo8ki]

I remember the two brothers that grew a huge business in Scotland in the railroad era building Pullman style cars. The bank "notes?" or "letters of credit"? were routinely discounted in process. the same thing occurred with these financial papers authorizing purchase overseas, especially of cotton from Egypt. It was just part of the financial process in those days to account for long travel and exchange of raw materials, to manufacturing in a country far, far away.

[@mikatu]

In Hong Kong the money is issued by 3 private banks.

[@sarethums]

THATS LEGAL TENDER!!!!!!

[@Dark6997]

Interesting fact there are couple of reasons why Scotland has three banks but one of them has to do the fact that the first bank the Bank of Scotland was believed to have Jacobite ties. So when a new company wanted to move into banking parliament agreed to allow them as a form of competition. Hence The Royal Bank of Scotland was born

[@Dark6997]

Also another interesting fact when the Bank of Scotland was first established it allowed for foreign investors to legally become Scottish citizens

[@chessdad182]

Your mention of the protection provided by the credit card system for is so true. Myself and all my relatives have had to use that protection due to criminals attempting to charge to our credit cards. Great commentary on private currencies.

[@Funktastico]

Did it occurs to you that protection is required/provided because credit card is flawed in a way that it is easily susceptible to such fraud in the first place ?

[@julkiewitz]

@@Funktastico Not really, protection against social engineering scams is a value add. And this has nothing to do with the underlying transaction settlement technology and how secure it is from a purely technical standpoint. The fact that transactions are reversible is a feature.

[@AnymMusic]

It's weird that someone can just charge someone's credit card anyway instead of it being a payment request rather than a charge.

[@PointsofData]

​@@Funktastico you realize every system has flaws right? Go look up how people are being hacked and swindled with the flaws in the block chain. There is no way to reverse a charge on the chain either, so all victims are SOL.

[@endersbyd]

Excellent Patrick. Easily one of my top 10 channels on KZbin

[@h3llbaronshow247]

So this channel is more like a collection of lectures than just some financial youtube videos. Great content!!!!!

[@codenamed0047]

I like how you didn't use a click bait title for this video. I really appreciate your focus on meaningful content.

[@Otis-the-III]

Love that my DCA into bitcoin and the stocks market cost me nothing, rather it did put me on the road to riches. Sh!t's paying higher than a paycheck.

[@MHousley]

Sell bitcoin? Why would anyone do that ? IMO always buy when you can afford it. Invest for future benefits, whether they be having the new money or selling for profit. Then, invest as if you might be wrong, The name of the game is to not lose wealth whatever form it may take.

[@ms.scooterrider]

@@Otis-the-III Its lucrative nature has never been doubted, but a higher %tage of investors lose rather than make fortunes off it. What's your system, sir? How do you go about it for profitable outcomes ? I am thinking about buying a small amount, trying to get skin in the game.

[@Otis-the-III]

Investing in stocks and crypto are no doubt one of the simplest forms of earning recurring passive incomes. I made my first million $ doing so! But their inherent complexity kinda makes it tough. I think it's more about knowing so much about investing in stocks and btc that you're able to note opportunities on any given day.

[@sPacEBallOOn]

Prospective investor here and the last six months was undeniably miserable for, absolutely horrendous. I'd like to know how you guys throwing darts over the wall actually do it?

[@curious-chris]

Out-f’ing-standing! I was profitable both January and February, & with Btc currently on the rise, 2023 is really shaping up to be a good one. So getting rich in fiat is ok in my books using Btc. It's basically FOREX!

[@johnathankain8033]

Private printed money’s history is still easy to see in Scotland and Northern Ireland, though all those notes are backed by government eventually, though not directly.

[@arnetrautmann9783]

Extremely interesting video. I did not even know how much there is to know. Thank you, Patrick!

[@hereigoagain5050]

Great overview! Patrick can pack a lot of info into an easily digested capsule. One pro is that some crypto seem to be pyramid schemes, so early "investors" make large rewards. Finding the "last fool" may be tough.

[@TammuzKay]

It's a travesty that this video doesn't mention the '1 Big Mac' coin. And it's a missed opportunity that McDonalds doesn't issue coins denominated in units of Tendies.

[@rogergeyer9851]

Tammuz Kay: So WHY is this a travesty (in your opinion)? So I see with 1 minute of searching, that this was only redeemable through 2018 at some McDonald's stores. So now, it's WORTHLESS, except for those who want to collect them, and trade them on Ebay (apparently, included in my 1 minute of a quick search).

[@Zaerki]

The McD Tendie would go straight to the moon.

[@TammuzKay]

@@rogergeyer9851 I was using hyperbole in an attempt at humor.

[@dan438]

Love your content. Thanks for putting all this work into educating youtube.

[@slothc]

Thanks!

[@ipenguin3918]

Given all the Cryptos, NFTs, the Rise of the Metaverse, On-Line Sports Betting, and Lotteries is anybody in the US paying their bills?

[@topshelfmusicgroup5899]

I thought I was going to get another video blindly attacking the blockchain industry based on how the technology stood years ago, not taking into account any of the improvements or issues that have already been solved (that most people not involved aren’t yet aware of). Instead I got a great overview on the history of paper money. Patrick is truly one of the best finance channels of all time.

[@zachzimmermann5209]

My fears and relief/appreciation exactly!

[@patrickt873]

You are missing the point. It's not paper vs digital. It's government backed currency vs private issuance of currency. Both have no intrinsic value but backed by faith. One is backed by taxation and in the case of digital currency has not been used for any major amount of transaction. Not that I liked either. One will be inflated away and the other was growing due to the excess supply of currency and rampant speculation due to negative returns of currency.

[@Dwightstjohn-fo8ki]

@@zachzimmermann5209 The early banking industry and cashless society was covered pretty seriously in my American high school days. But you'd not know much about it if you didn't go to school in the USA. The Founding Fathers "concerns" is also covered extensively, IF the kids going to school paid any attention.

[@michaelmanning5379]

There's a series of plays collectively known as "The Wingfield Cycle" about Walt Wingfield, a stockbroker who gives up the exchange for a farm. In the third play, "Wingfield's Folly", Walt convinces his neighbours to adopt a new currency, the Walt. He gets an education in practical economics.

[@noneofyourbizness]

a crypto piece researched, written and published by a 'non crypto' person that's not riddled with falsehoods and patent nonsense; a RARE find indeed. top job.

[@dollarcostbackpacker1226]

.... He is in crypto... I know I have heard him talk about waiting for a correction .

[@LexiH36]

@@dollarcostbackpacker1226 he means he doesn't hype up crypto.

[@FarfettilLejl]

He seems clueless about bitcoin

[@TheHighborn]

Crypto is not as private as most people think. BTC is literally wide open. If you can connect a waller with a person, even a child could look at the history. Monero on the other hand is literally an enigma. And that's why it's kept down low. Nobody can tell what's happening on the chain

[@MrCmon113]

Yep, although state worshipers cry about every crypto currency. The agents of nation states themselves understand that the real threat is privacy coins like monero.

[@DavidCunningham65]

Amazing "edutainment" value. Inching closer to patreon. Love, love, love that distinguished suit. But love, love, love, love, the content of this particular production. I really admire you professor Boyle keep these high-quality videos coming please.

[@SMASH_REVIEWS]

"HOUSE OF CARDS" - both the traditional Finance and Bitcoin too, sure it has value because of scarcity but its price always sits on the foundation of US dollars . When the chips are down, Bitcoin and crypto will shit the bed faster than any currency ever.

[@SMASH_REVIEWS]

@Hakim Habib Are Millions of people competing to get Kidney Stones ? Come on Bro.

[@stevec.7017]

Wonderful. Is there a link to one of your college lectures? Would love to listen to a class. I find you very interesting and appreciate your channel.

[@MrAsteba]

There are several lectures in his KZbin channel.

[@stevec.7017]

@@MrAsteba I will have to look for them. Thanks

[@bonob0123]

I missed the live chat, but wanted to suggest a video idea to hear more about digital versions of sovereign currencies eg digital yuan. The problems they solve, the problems they don't solve, the complications they raise, their potential effects on existing cryptocurrencies a la Bitcoin, Ethereum. Prospects of US digital dollar (seems unlikely from what you say in the video), the reasons for this etc. Thanks and please keep up the excellent content; lots of very smart academics I know (in areas outside of finance) watch your stuff. I think the combination of solid information and subtle humor in an unexcited format is gold.

[@bonob0123]

@Hakim Habib how is dollar a cbdc? not talking about fee based payment systems like paypal etc.

[@engrahmed7122]

As an Structural Engineer I find your educational videos very informative and consider myself to be your student. There isn't a good video on how and which sectors/assets to invest in inflationary environment and in deflationary investment. Liked. Subscribed.

[@ecavero1]

17:39 This is not the case anymore. Lightning Network transactions are instant and cost fractions of a penny.

[@porkch0mp538]

Thank you for making this stuff. You always say its boring but its fascinating to me to see how history repeats itself in new forms. I wish we learned more of this in finance school. Maybe there was a class called history of finance but I didn't take it.

[@garrettwise7713]

Great video, interesting topic. Sheds some new perspective on how to view cryptos when having a bit of history on private currency. Very thoughtful topic if you ask me.

[@Zaflon]

Crypto currencies can be imbued with different properties. They can be frozen, locked, burned etc. I almost imagine the usecase for crypto being more like Nectar points or shop specific tokens a bit like the lumber mills.

[@ominollo]

Hi Patrick, Another proof that your channel is very underrated 🙂

[@johnristheanswer]

By who ?

[@marcuswaterloo]

Very interesting and well-presented talk on these topic. Second time watching......

[@苗润坤]

Hi Patrick, great video. I've done a few blockchain projects and from my experience, almost every blockchain application issue their own token/currencies, just because the fundamentals of the blockchain application encourage developer to issue their own token to build a clean usage environment. The government issued digital currency actually can be used to replace all the funky stable coins in the market, and work as a medium to help user exchange their private issued coins to fiat currency back and forth. Since most of the token/currency run on blockchain by design is to disclose transactions, so I don't think the central bank digital currency raises more privacy problems than any other private token/currencies.

[@tavirosu25]

What's the point of it. If you get paid via banking, so electric generated balance and you never take out the money in cash and just pay with your card...one would say then your money is indeed vitual just like any cryptocurrency is. The issue with crypto is that if you want to take it out, you can't. For some people having physical bills in their hands is valuable.

[@cyruschadrezzar]

my power went out yesterday. a stable power grid is an afterthought.

[@苗润坤]

@@tavirosu25 you are actually questioning the current monetary system, which is reasonable. And if you go a little further, you will find out the physical bill is just as worthless as any crypto in the market.

[@buildmotosykletist1987]

@@苗润坤 : Did you think about that before writing it ?

[@george6977]

@@tavirosu25 Yes, cash is useful when there is a power cut, after a hurricane for instance. You could be a crypto millionaire but if there is no electricity or internet connection etc what use is your crypto in the real world?

[@SkantaSWTOR]

I like the way you are sceptical about crypto, but give it a fair evalution

[@zaaaru]

I would like to note that a bitcoin transaction costs between 0.15$ and 0.30$.

[@zacrl1230]

Sometimes as low as $0.02. Moved $10k for that much, on a Sunday, within an hour. Please show me a bank that can pull that off.

[@MrCmon113]

​@ryanpatrick4920There's alternatives to the btc base chain. Besides monero transactions are only like 6ct at the moment.

[@bogdanb32]

great video Patrick!

[@YouChube3]

Bringing the big brain energy. Love ur work 👍🏼

[@paulmaartin]

Abraham Lincoln got in a duel over a debate about money.

[@luckylanno]

I guess gift cards are a form of private currency then? Perhaps we should switch to the Target gift card standard

[@MrCmon113]

What exactly is the advantage of a gift card? They're not fungible for a start, they're not all the same.

[@CaravaggioRoma]

Extremely educative video, thanks!

[@samsonsoturian6013]

All this should show just how fragmented the US economy was in the 19th century along regional and local lines

[@mickey2641]

Great moment of the day, when you get notification about new video of Patrick. Great thing to watch before sleep.

[@donaldfraser2431]

Thank You Patrick, you Sir are an educator . Your content is always well organized, filled with historical facts, and just good. Respect !!

[@xouat]

Excellent video. Thanks for this

[@svessien]

Actually, currencies have been competing as long as currencies have existed. Athens made their tetradrachms the trading standard over the whole Mediterranian. The denarius took over in the 2nd century BC. Then came the sterling penny, etc. History is full of examples of attemtps and successes in monopolizing the money standard. Alternative currencies have popped up to either take over, or at least keep the leading currency honest. It is as it should be.

[@elementaltamago1297]

17:48 The average fee is actually $100 per bitcoin transaction, not $20. The remaining $80 are paid via the creation of new bitcoin, and thus is collectively paid by inflation against the other users of the network. Eventually as fewer bitcoins are created, the transaction fees must make up the difference.

[@MaojumperRules]

Really great video Patrick. I am trying to explain to my hyped friends what madness it would be to have a "Bitcoin standard", but unfortunately, I am not that convincing nor educated. From now on I'll show them this video. Thank you!

[@FlyingKoreanMinja]

If they are too far into it, they would just ignore this video too.

[@julkiewitz]

It would cause monetary policy problems like in the Eurozone, except 100 times worse.

[@lamalien2276]

Patrick doesn't know very much about the space. This information is extremely dated, the tech is much further ahead now. Patrick didn't do enough research.

[@yogathan1]

@@lamalien2276 okay Mikey Saylor calm down and go back to El Salvador the greatest country ever!

[@quark_E]

@@guileteemgowitevryteeng1711 Bitcoin has *deflation* built into its economic model, not inflation. Not saying that's better or worse, I definitely think there's problems with the way it's implemented.

[@Reathety]

This channel is amazing. Great work!

[@finlanderxx]

Would have been interesting if you had looked bit closer on the functionality and use case for the top 50 cryptocurrencies and tokens and comparing them with the old private currencies.

[@cgo225]

Really enjoy your videos sir, very much appreciated - thank you!

[@sheefo6217]

Great stuff Patrick, the 2 cryptocurrencies that you mentioned in BTC and ETH are in no position to be used as everyday cash as you mentioned due to tech constraints but with the huge community of cypherpunks that they have garnered those technological constraints are being worked on, they're value proposition as of now is anti-censorship, the transparency in how they function and how they are issued, and of course decentralization.

[@Oscar-vd4cv]

What's the benefit of decentralization? It just seems like people just use the word as an argument. Can you give me a tangible benefit? The USA already has decentralized finance, PayPal, Visa, Amex, Mastercard, all with interchange fees much cheaper than crypto, but it seems we'd actually benefit from a centralized system with no interchange fees and instant deposits, I could be wrong but I think some countries do this already, but the USA to me already seems decentralized and it's a problem imo.

[@patrickt873]

There are better ways for decentralized money

[@patrickt873]

Decentralized does not mean governments just censorship or privateship. Cash paper is the best if you want your transaction not to be tracked. Any transaction on a card can be traced. No what Decentralized here means is the quantity of issuance is outside of Central banks issuance and to some extent its traceability too. As an over leveraged society crumbles what the government cannot find they cannot grab. And what they cannot print to oblivion will have value. That's Decentralized....

[@Dwightstjohn-fo8ki]

@@Oscar-vd4cv The three Bitcoin "mines" within walking distance of me are owned by locals that ALREADY HAVE cash flow, millions, properties, and many project son the go. They're normal. And if Bitcoin tanks, it's no big loss for them. BUT the advocates and conspiracy idiots thinking this is going to make them rich, or solve all their OTHER problems (like having no money and not REALLY wanting to work a normal way) simply have no exit door...that isn't going to hurt on the way out.

[@RayosMcQueen]

@@Oscar-vd4cv One attractor is to get the benefit of monetary policy like bailing out an economic sector or curbing inflation without bearing the dilution of wealth by increased traditional currency in circulation. Another attractor is anonymity, which also attracts a shady crowd.

[@soulflame799]

Thank you for this video! I learned so many things I didn't know about alternative money in the past!

[@clawsoon]

I've read about banking wars in Canada in the 1800s, where banks would quietly buy up the bills of a competitor, then redeem them all at once in order to cause a bank run and drive their competitor into bankruptcy. It was obviously ruinous for the system as a whole. I wonder if the same thing happened in the US. I'm only halfway through the video, so perhaps it'll come up.

[@danb1618]

That’s a great tidbit 😆 and vintage practice from the crooks in suits. Ty

[@Dwightstjohn-fo8ki]

@@danb1618 My guess is the USA crowd would not want to miss that opportunity.

[@mariusciobanu4254]

This is actually a great way to keep banks honest and drive out of business dishonest bank. As long as the bank kept in reserves enough gold to redeem the notes - as they should - then a bank run would not affect the bank. On the other hand, banks that would cheat customers and issue more paper than the gold they have - they would be exposed to these bank runs.

[@michaelbraun9750]

@@mariusciobanu4254 unfortunately that doesn't work with the biggest crypto stablecoin USDT (Tether), since once you've given them your USD for USDT you can't redeem USDT for USD as per their user agreements. I assume most people in crypto that buy/use USDT don't know that. If it was possible to force them to convert their tokens back to real dollars the party would have been over for them for years since they would have had to show the real reserves they had then.

[@trucksanddirt1506]

This channel is so great, so instructive with so much fun

[@samsonsoturian6013]

Related fact: Archeologists say that finding treasure hoards and/or coins with holes in them (for use as jewelry) is the sign of a completely collapsed economy. There's simply nothing to spend that money on.

[@himoffthequakeroatbox4320]

That or somebody needed a washer when the hardware store was closed.

[@samsonsoturian6013]

@@himoffthequakeroatbox4320 that only applies to cheap coins. Gold and silver, not so much

[@emilebichelberger7590]

Very interesting topic! I’m halfway through the video

[@wetdroidedition2549]

"faith" is a crucial term. Can we say the subject of our faith is subjective? Value of gold is essentially subjective too.

[@katjaofdenmark1246]

Nice one. Thanks a lot. Very interesting🙏

[@Poctyk]

Didn't know that microtransaction stores and currencies have almost 150 year history

[@exzemz]

Great as usual! On a similar topic, would love to see your take on the economics of airline mile/reward schemes!

[@JonnyD000]

Great video as always, very interesting history on American private currency. An important thing to note on the thousands of cryptocurrencies though (ignoring the trash meme coins), is that the majority of them are not trying to be currencies. The term cryptocurrency has become a bit of a misnomer in the present. They should be called digital assets now, as many coins have various functions for different decentralized services that can make them more like a commodity like oil/gas, or equity instrument like stocks/bonds, and some have new functions that they will need new classifications made as they don't compare to any existing thing.

[@julkiewitz]

I'm not sure that's correct. The majority of crypto tokens aren't really useful for anything other than trading. There are some exceptions like Filecoin (which after years of waiting actually launched its storage service). Most tokens however are only promising some sort of usefulness in the future. Oil, gas, gold - these assets can be actually used for things other than trading - creating jewelry, electronics, production of plastics, energy production. I cannot use BTC hashes for anything by themselves. If the ability for trading crypto went away, most of it would become worthless, no?

[@soil-play]

I think "asset" is a bit of a stretch as these are simply entrys in digital ledgers - perhaps someday they can represent or be a record of an asset but not seeing that right now.

[@diehard7832]

Agreed. I think crypto is here to stay and could over take the stock market. Imho, the market is plagued with corruption (AMC/Gamestop), insider trading, inflation, manipulation, etc.... Where crypto only seems to suffer from volatility & manipulation.

[@TheMineCool]

@@diehard7832 decentralized cryptocurrencies are not immune to manipulation, corruption or insider trading. It being decentralized will actually make it much harder to identify, stop and prevent such problems already existing in traditional financial systems.

[@julkiewitz]

@@TheMineCool Decentralization ensures that the rules enshrined in the crypto protocol are not broken. The problem is, there are very few rules enshrined there (or even rules that could theoretically be enshrined). For instance it would be very challenging to implement a feature as simple as chargeback.

[@freeman.7238]

Excellent explanation as usual. Thank very much.

[@brian.wonton]

Patrick you're slowly saving me from causing my own financial ruin thank you I love you.

[@genkestrel7254]

That's great Brian :) What did or didn't you do that's saved you from financial ruin based on Patrick's teachings?

[@brucecodding3415]

A very informative review of 'private money', which I never knew existed. Thank you.

[@barnowl4528]

The silver run of the last two days is a short squeeze against the position of Bank of America

[@endersbyd]

I’m enjoying every minute of it!

[@brianmathis5423]

ohhhhhhhhhhhhhhhh that's what the silver run is about

[@tomg5187]

Wow! You are incredible. I have learned so much. Thank you.

[@chrishubley7849]

Private currencies are not illegal in the United States, but they are effectively illegal because of the laws related to capital gains taxes. Gold, for example, is a very good currency, however the bookkeeping required to use it as a day-to-day currency is extremely onerous... practically impossible. Imagine having to keep a record of each time that you receive or spend money, plus a record of an exchange rate with each transaction. I contend that private money has fallen out of use because capital gains taxes were introduced in the early 1900s, not because government money is inherently better.

[@chrishubley7849]

@Ryan Patrick Too scarce? If demand goes up and it becomes more valuable, right? Do you contend that it'd become so valuable that it couldn't be denominated in small enough amounts? If so, you could use something less scarce like silver for small transactions. Also, you can buy a house (a mansion?) with a brick of gold. How much do you need to transport? (Edit: I do think electronic currency is easier to transport than gold, and thus it's probably better money. But, gold isn't bad money by any means.)

[@chrishubley7849]

@Ryan Patrick the problem of coins being worth more than their denominations comes from the government decree that, for example, a quarter is 1/4 of a dollar. If the value of the silver in the coin is worth more than the declared value the coin, the government has a big problem because the coins can be bought from the mint for the stated value melted down and sold for the market price. As for everyone weighing coins, in the past coins were often weighed, but historically coins are created in standard weights and sizes to make transactions easier.

[@OmDahake]

Great Explanation

[@8aemi]

Love you Patrick - these well research, well explained videos make my day :)

[@lamalien2276]

Patrick doesn't know very much about the space. This information is extremely dated, the tech is much further along now. Patrick didn't do enough research.

[@8aemi]

@@lamalien2276 yeah I don’t follow him to learn about blockchain or crypto or advances on the trilemma- just a good overall look on the past and objective similarities with the present and in that sense this was very complete though, this guy knows his stuff and better he shares in an organized clear way .

[@yogathan1]

@@lamalien2276 looks like you know how to copy and paste your comments. Congrats!

[@randyreynolds1045]

Great review

[@hamsterjohn]

One the best videos from you yet! IMHO crypto and CBDCs will find use in the future and as the masses are awakened to the poison that is fiat the market will be more crypto-centric (as opposed to CBDCs, which can be easily manipulated/controlled)

[@corail53]

Not sure where you have been the last decade but crypto is full of manipulation, controlled by the devs, fraud. You bought the marketing hook line and sinker without thinking. USD is basically a digital asset in its current state and can do transactions in magnitudes faster than any crypto - along with protections for stuff you see everyday in crypto. The only thing keeping it held back is that the banks want fees as that is how they make money - guess what that is the same thing as a gas fee - you are paying for the miners/devs on every transaction and it fluctuates instead of being stable.

[@GemstoneActual]

This is most excellent. You're an artist, Patrick. Just -- well-crafted.

[@aracrg]

The early history of US money reminds me of Bitcoin and Lightning now. Whereby paper money was used for general trade (lightning), and was redeemable for gold (bitcoin). Except in Bitcoin and Lightning the currency is the same, and is equally redeemable and divisible on either platform.

[@ianparr5899]

Agree, with the observation BTC is a finite supply whereas banknotes are infinitely printable therby devaluing them over time.

[@whitejodeci8926]

​@@ianparr5899 Nope. BTC is inflated by tether, which is already insolvent.

[@David-lm6oy]

I do not think decentralised currency is going to displace fiat currency, but i do think it has a place in the future. The Internet changes everything it touches, news, music, relationships, and now it is touching currency.

[@qwerty_artist]

The fact that crypto isn't used more like a currency and less like a speculative asset honestly saddens me, I try to encourage use of it as a currency by offering it as a payment option for my own services, but ofc rarely anyone actually takes me up on it xD

[@rogergeyer9851]

Qwerty: In the real world, high fees matter. Also MASSIVE volatility for a "currency" matters a LOT.

[@terrymoose7273]

@@rogergeyer9851 Only ETH has crazy high fees. That massive volatility you are talking about is not something a lot of people around the world have a problem with because their countries currencies are worthless do to government mismanagement

[@julkiewitz]

@@terrymoose7273 You know, people don't have to use cryptocurrency to solve the volatility problem. They can for example use... dollars. People in Turkey routinely keep their savings in dollars or euros due to lira's volatility and general weakening over time. Using crypto to solve currency volatility problem is like killing a fly with a tank. It's completely unnecessary and wasteful in all sorts of ways. People don't use crypto as a currency because it's not a particularly good currency. People use it for speculation because it is great for that. It has high volatility and a lot of dumb money invested in it (a lot of smart money too, of course) which actually makes it possible for some people to outsmart the market once in a while.

[@MrCmon113]

It is used as a currency and always has been. That's why governments are fighting it. The IRS is openly looking for a way to break Monero.

[@gl846]

Fantastic video

[@Mark24XX]

This was an excellent video, I never knew about how many currencies there really was in the past. One criticism of the video tho is you only talked about BTC and ETH you mention all their flaws. There are many cryptos out there that offer solutions to these issues, they offer low fees, fast transactions, and even are better for the environment than MasterCard or Visa transactions. Would have been nice to mention those, but overall a great video! Thank you

[@melvinthedeathless.melvint6727]

If solutions existed, El Salvadorians sure ain't seeing it, their crypto transaction fees ends up being higher than traditional remittance services: charged for using the crypto platform and charged a 2nd time for converting to fiat.

[@TeodorAngelov]

I am no crypto expert but those small seemingly efficient cryptos are so because they aren't widely used. They wouldn't scale out well.

[@slop123456789]

@@melvinthedeathless.melvint6727You are misinformed. They still have the option of using legacy services like Western Union for remittances but they are switching voluntarily to BTC as it is easier, faster and cheaper.

[@miguelzavaleta1911]

Which cryptos specifically would you cite as being more efficient than Visa or MasterCard for the same use scenario?

[@Mark24XX]

@@miguelzavaleta1911 Xrp is has been around for a decade now and never had any major issues like with eth. Settlement takes 3 to 5 seconds and the fees are fractions of a penny. It uses less energy than a MasterCard or Visa transaction. Xlm is also another good one, cardano as well maybe. It's hard to tell with other ones since they haven't been used at scale yet. Solana is energy efficient too but the network is having scaling issues

[@neutronstar03]

about crypto, there are modern blockchains with 10c transaction fees, seconds time-to-finality and smartcontracts, already deployed and in use by thousands, this has actually been the 2021 revolution Another way to see crypto Tokens is that many mimics stocks for a project. Crypto projects can emit tokens as companies can do an IPO and have investors pour in money. I think in this perspective could be way more interesting and democratizing stock access.. for example!

[@0ldskool75]

Love the educational essays like this one. I enjoyed the history of currency in the US and how it is relevant to crypto currencies today. That said, lumping ethereum with Bitcoin is a bit misleading, as ethereum is trying to build a digital platform, not just a currency, which is a very practical differentiator. I wish you would delve into this and other crypto currencies that make them differentiators from each other and increase adoption rates. As big banks are now looking to hire crypto currency developers, there is definitely a sense that widespread adoption is eminent to at least some degree. It is a bit misleading to lump them all together and treat them all like Bitcoin. Would love to see a follow-up that looks at some of the more prominent crypto currencies and what they are doing to differentiate and hit mainstream adoption.

[@buildmotosykletist1987]

For the most part banks are interested in blockchain developers not crypto currency developers.

[@ErikPattison]

Actually, he did compare their usability as real currency succinctly. The other 3000 did not get a mention. I am sure they each have their own "Unique Selling Point" like a "digital platform", tether to an existing currency, dog-based Esperanto or Musk-scented multiverse. It is just a pain in the butt to buy stuff with them.

[@buildmotosykletist1987]

@@ErikPattison : He mentioned there were 6 thousand others.

[@CotySchwabe]

I first learned of Scrip in Bioshock Infinite. Great video as always!

[@jacopopiccirillo]

"Money only backed by faith".. Reminds me of something.. Oh right the US dollar! Anyway you should check the huge amount of use cases offered by defi Patrick. Its not just private money, its decentralized programmable money. Its the difference between a smartphone and an old phone ;)

[@kkkkkkkb9945]

@Ryan Patrick "backed by" = manupilated by. No reason for foreign coutries to peg their currencies anymore if us keeps on printing dollars to save its freefalling economy and wrecking foreign countries. If they are expecting 2020/2021 levels of money printery im sure foreign countries would rather their currencies be backed by "nothing"

[@george6977]

@Hakim Habib Yes, US citizens can only pay their taxes in USD. Anyone who wants to buy US Treasuries or equities also does it via USD.

[@AmexL]

@@kkkkkkkb9945 well I’m not sure about the “no reason…” argument. You realize the US provides defense for many of these foreign countries both individually and de facto en masse by its empire. I’m not justifying it, just pointing out the reality. And of course, the US hegemony is being challenged and successfully. When that changes, then the dollar as the world’s reserve currency status will follow.

[@patrickt873]

All currency are backed by faith. They are called FIAT for a reason. Before, the dollar was pegged to gold at a fix amount $35 for 1 oz of gold. All currencies then took dollar with that understanding but then the French discovered that the US wax printing more dollars for wars and social programs than they have gold. Since then, the dollar has lost much of its purchasing power. And we are about to see this again with another dose of Inflation now globally. It's not how much paper you have. It's what you can buy with it. And governments can only try to print their way out of a problem instead of shrinking itself.

[@patrickt873]

@@AmexL it could end that way or the US government can print themselves to oblivion thinking that they have all that hegemony and no one can take it away. Look at the 70s and look at what Volker had to do to regain the world's trust. Today if they try to raise interest to even 2% the market will collapse so what hegemony will there be if there is no more faith?. And faith is the only thing holding it up. And when oil can be priced in Euro or even worst the RMB then the hegemony is truly gone and then it gets really ugly with 🔫 🔫 🔫

[@Tsacchi94]

Commenting to support. Exceptionnel comme d’habitude.

[@julkiewitz]

So the conclusion of the story seems to be that the value of cryptocurrencies today depends just as much if not more on the centralized crypto exchanges, as it does on the decentralized network itself. If the centralized crypto exchanges went away or become inaccessible to a large group of people, that would severely affect the valuation of crypto tokens. This would be in line with the history of private currencies.

[@krtolas]

Exactly. That is the point, crypto decentralised nothing when you still need exchanges to get fiat. It is not the future it is more a niche which is filling i.e. speculative trading and funding illegal activities.

[@MrCmon113]

@@krtolas Which is perfectly fine as well. And which is also why states and their worshipers are so vehemently against crypto.

[@fsdh4]

Patrick, if someday, somehow, some cryptocurrency ends up taking the place of fiat money (afterall, this is the faith of those who believe in bitcoin) do you believe we could avoid a deflationary economy, beeing the amount of the digital money restricted to a initial quantity?

[@Apoptosis89]

Not all Bitcoiners believe it will take the place of fiat. It can work alongside it, operating as a global store of value. Each country can still have its own fiat currency.

[@Apoptosis89]

@@austin3853 Why is stability necessary for storage?

[@MP-ng1sc]

Thank you for your videos! I didn’t know there were so many Cripto currencies in existence, I admire the way you explain it, I’m just an average person and I’m learning so much from all of your videos, Excellent!!👍🏻

[@garrettfields6972]

No Patrick YOU have a good day

[@highseas6238]

I watched an absolutely amazing video by you but can't seem to find it again. It was the one where Mr. wonderful was trying to make himself relevant by shooting zoom videos with his pants off. I was wondering if you knew the video I was talking about & the title ? Thank you so much. BTW I Love your insight & content !!!

[@PBoyle]

That was the video called "My Investment Plan For 2022!" from around two months ago.

[@tonylou1234]

Very detailed and well researched. Thank you.

[@smokinthehippies8257]

Damn, that suit is fresh AF.

[@cervelo9465]

When (not if) the next severe stock market crash happens then it will become very interesting what happens to BTC and ETH.

[@muffinman1]

Fascinating topic. Thanks 👍

[@entropyinreverse9044]

First of all, an amazing approach to help demystify this “monetary” application of block chain technology. Secondly, I was wondering what would happen when the last bitcoin is mined? What incentive will there be to continue to have your servers guzzle down electricity so that numerous records of one transaction is validated? Would appreciate your thoughts..

[@ZanathKariashi]

similar to a credit card company, a % of each transaction will be siphoned off to be the reward for the miners, replacing the freshly minted bitcoins they currently get, but otherwise being distributed pretty much the same way as now. And the blockchain mining participation will contract until an value equilibrium has been achieved (which we've already been seeing). Or the whole system collapses because China gets and hoards all the bitcoin or people stop using it because it's simply too slow, and it ends up a niche novelty used primarily in 3rd world countries because they have literally nothing better.

[@walden6272]

@@ZanathKariashi Since Bitcoin is finite, what happens when all Bitcoins are lost? For instance, since Bitcoin inception, about 10% of Bitcoins are lost forever, due to people misplacing their cold storage keys, some lost them through hackers, and other simply die prematurely and took the Bitcoins with them to their graves. Since Bitcoin has lost 10% and been around like only a decade, at this current rate, that means there will be a time maybe in 90 years, all Bitcoins will be lost. Correct?

[@MrCmon113]

@@walden6272 Last month my cousin had no husband. Now she has one. By the end of the year, she will have three husbands.