by the way I apologize for making you do this remedially no that's okay I like it right but I really don't know it so well and I would like to know this is one of the best crypto explanations of all time either Bitcoin or or crypto or those things where what need is it filling billionaire Mark hin simply explains Bitcoin to comedian John Stewart who admits he's a complete beginner I'm the dummy who who doesn't quite understand if you have a family member who doesn't quite understand crypto send him or her this they will thank you so then there are other cryptos ethereum is one that I also own a bunch of I mean literally this one video can start your journey onto becoming an expert like the video right now to support me and let's start and I'll react along the way in terms of crypto look if you talk about young men and on apps as far as I can see they're also on FanDuel and all these other gambling act so explain to me help me understand why this isn't just a a random gamble for these young men that isn't going to come back and bite them in the ass what's the underpinnings of it and and why is it better than just jumping on FanDuel and trying to hit a parlay on squin parkley which we won't get into well there are a lot of analogies I'm not GNA argue with that right but think about gold I mean all that gold we have in Fort Knox it's not because the United States government is betting on how much jewelry is going to be sold at Christmas I hope not right I mean there's no intrinsic value to Gold other than we say there is intrinsic value to Gold I see gold is a store of value and so people hope it goes up there are some people who think that you know if there's a catastrophe and the um the economy creators then gold will retain its value I will quickly add on that the reason people tend to see gold as a store of value and also are tending to see Bitcoin as the same undeniable traits that both gold and Bitcoin have for example why have humans naturally chosen gold over the last multi- centuries over beads or stones or cows why is gold the store value well a big reason is because it's scarce it's also costly and difficult to get if Bitcoin was plentiful or let's say we can make more gold just like we make candy bars or we can breed More Cows then gold wouldn't be a good store of value both Bitcoin and gold have these un deniable traits of money but it's not like you can walk around with a bar of gold and you know like it's 1822 and you slice off a little sliver and you weigh it someone's just going to knock you out and take your bar of gold that's how I've been getting at the supermarket I've been I've been slicing my gold getting getting my eggs smle for you a little schmeckle for you that's what that's that's what I'm talking about so let me translate that to bitcoin yeah okay Bitcoin is become a store value it's you know marketed that way and has been marketed for the last you know 15 years years or whatever it is and it's gotten to a point of acceptance just like way way way back when gold got to a point of acceptance as an alternative for legal currency or as a foundation behind legal currency right Bitcoin has kind of taken that place and it makes more sense in a lot of respects you're not going to carry around that bar of gold but you can carry around you know your phone as an example that has Bitcoin on it and if you need to transfer value to somebody else it's easier to do it right now particularly if you're 21 with Bitcoin than it is with gold so there truly is an economic value there but now we have between gold and and Bitcoin there's this other thing that we have which is currency and and is this meant to augment that to replace that what are the transactions that are made better by using either Bitcoin or or crypto or those things where what need is it filling I guess well it's faster and cheaper particularly for international exchanges so you know if if you're in pick a country right and you're like Mark I need you know I need some something to spend right I need some money it's a whole lot easier for me to send you you know $100 in Bitcoin or ethereum um or usdc than it is in cash now is the idea then that like what would happen with like say an Apple pay or something along those lines that stores will begin to adopt a technology so that it its use becomes more convenient even at like if I'm running down to WWA and I want to grab myself an ice tea no so let's talk about two different things here that's two different things okay okay I AO but by the way I apologize for making you do this remedially no that's okay I like it right but I really don't know it so well and I would like to know it so just think of Bitcoin like digital gold period end the story oh it's just built on supply and demand only the difference is people are still mining gold and it's physical you have to pull it out of the ground there's a lot of cost associated with that Bitcoin is All Digital but it's limited in the number of Bitcoins that will ever be created to 21 million now who limits that is is there an overseeing body that makes that was part of the original plan that's the way it was designed originally so right now they're about 19.8 million Bitcoin out there minus what's been lost along the way how do you lose it so early on you know you might have bought a bunch of Bitcoin in 2012 for 10 cents each didn't think twice about it threw away that phone and you had 10,000 Bitcoin on it dear God yeah so there's stories about people literally who put hard drives into um trash sheeps and lost it and now we're searching in trash style looking for so but that's Bitcoin and it's just supply and demand that defines what it's worth so right now the price is near $100,000 that means a lot more people are buying it than selling it very analogist to gold right so then there are other cryptos ethereum is one that I also own a bunch of and the difference with ethereum is it really takes advantage of the blockchain but it adds something called smart contracts and what a smart contract is it allows um activity to be triggered by other activity think of smart contract as just automatic contract so the difference between traditional contract and smart contract just take the word smart out put automatic in and the value with that is it takes out the middleman so no longer do we need institutions or middlemen to make sure things go smoothly it happens automatically thanks to the blockchain automatic contract so for instance you know I won't go into deep details but if I want to create an nft and use that for um for books really just let's say for textbooks right that smart contract associated with that nft has specific features about it one of the unique features that are part of ethereum and smart contracts and nfts is can pay royalties so if John Stewart writes a book for a college right and it's a textbook on accounting right now it's got to be physical and then you go to the bookstore and you buy a used copy but for used copy that's sold and resold or an ebook that they would download or something right the physical copy you don't make another nickel in royalties as it's sold and resold if you do it as a digital version using ethereum in a smart contract and an nft the royalties can be paid on and on and on and on again um as as that digital textbook is resold has this is this something that's been applied yet to music publishing because that seems like it would cure an an awful lot of of the difficulties in in the royalties of music publishing yeah in all IP for that matter um but the reality is it's only been done on a small scale the challenge for crypto right now in all cander it hasn't had its Instagram moment if you remember going back to the original app store in 2009 I think it was it wasn't there weren't a lot of people downloading apps for their smartphone I mean unless you were really geeky and into it but then all of a sudden Instagram came along and Grandma and Grandpa and mom and dad needed it then Facebook had an app and so that really got people into smartphones and and um using and downloading apps we haven't had that moment with crypto yet that's still something that's an that has ultimate utility for everyone and anyone that doesn't exist yet and that's kind of the ongoing hope if you're interested in making money with crypto click subscribe for a daily video keeping you informed and like always see you tomorrow