Manuel Polavieja: Bitcoin is inevitable

Our guest began the meeting with a statement bold: “Bitcoin is easy”. Making the journey through the history of money, the backing on the gold standard, the conceptual advances and technological necessary for Bitcoin to become a reality, we come to the conclusion that Bitcoin is anything but simple.From the cows as a system of transfer of value, to Pound, our conversation touched on the basics to learn how to differentiate the money from the credit. In the end, we all understood: Bitcoin is inevitable.To have more episodes or early access, before the regular publication, sign up on the Apple Podcast, Anchor, Breaker, Google, Podcasts, Overcast, Pocket Casts, RadioPublic, Spotify, Stitcher, ivoox or RSS feeds.


“Bitcoin is simple,”The energy cost of Bitcoin is a problem of mercadoAdopción of BitcoinEl ticket as widespread use.Bitcoin as a safe asset at low risk.The utility of the bubbles.The problem of the capitalization of Bitcoin.Bitcoin prior to the fork.The evolution of the price of bitcoin.De as printing money is to issue debt.The difference between money and credit.The market in the period post halving.Pound as the figure.

Notes of the episode

A preview of what you’ll find in this episode:

Elena: To see Manuel why Bitcoin is inevitable?Manuel: Well, I think that Bitcoin is inevitable because the money is more simple that it has been invented. You have 21 million units, very easy to transfer with a storage cost very low. Because in the end, when you want a money that will serve to retain value, what you need is that the cost of persisting is very low. And bitcoin fulfills this feature. We all know and we have the experience, and especially in some countries, as in Spain in his time, or as also happens daily in Venezuela, or in Argentina, how it dilutes the value of the currency, and that is the cost very large, the need to maintain a coin in your power, if what you have is diluting, diluting and diluting, as it is a very high cost. Or compared well with the gold, having to store it or keep it, it is a very high cost, and that’s going to erode a ability to keep that money that one does not puedeElena: Well, I think that “bitcoin is the currency most simple that has existed” you can say only someone who knows computer science. Because for me it is anything but simple. And it seems to me that you’re overstating our capacity to understand how the code works.Manuel: Good, to see. Is that there is one thing that I think is important. It is true that my car is a computer engineer. But I think that has to do with the money, or the concept of money in bitcoin, the technology is entirely secondary. That is to say, Bitcoin today has the technology that you have, as the chain of blocks, the consensus system, the cryptography algorithms x you have, but that’s going to go on changing with the time. The cryptography algorithms, it is a matter of time that they will break. That is one thing that the whole world affects, all the world knows, and that is going to evolve, because every time they have more bits of encryption, or are becoming increasingly complex because every time the computers are more powerful and have an increasing ability to break these codes.Then, there is already talk of replacing some. Without going into technicalities, which I think is not necessary, what is relevant for bitcoin is as simple as the algorithm, the coin; the technical way in which we manage or point to these coins, how they are transmitted, how they are managed, that in my opinion and from my point of view money is a thing secondary. As with the gold, for example, the way in which coins are made, which gives them shape, or the refinement that gives the gold is a secondary part, is the technology around the gold. But, what is important is that the gold, in this case, has a limited amount of what is one of the things most relevant in terms of what the money is for, and the technology is a little bit different in each time to manage it, is secondary.Yes it is true that in bitcoin, acquires great importance because until then, a limited money of units, so to speak, a set mathematical of 20 million units so how do we know that someone has not spent the same unit twice? So, technically Bitcoin was a revolution because it solves that problem, and this was a problem that really was technical. But the essence, so to speak, those 21 million units that have always been there, have always been the dream of all the theoretical money. The power to have those 21 million units and that no one could spend two times, and that each one had his own and only transmit them and use them as money. Bitcoin solves all of that problem of double spending without having any central entity, evidently as a technical solution, but relevant is the other thing, which is a set of cryptocurrencies, and that you can use it as money.Joseph: Terrific. Manuel, of several of the points you mentioned, point out that it is more economic to keep, it is more economical to transport and everything. I would like to know your opinion on what you think of the approach that Bitcoin wastes too much energy, and all costs associated to it.Manuel: Well, that is a matter of the market. That is to say, we have a technology that works as it works, the mining is necessary above all to coordinate and to reach a consensus of who is the owner of every coin, that is to say that the blocks run correctly and in the end those who used bitcoin are willing to pay for it, and I don’t see a problem. That is to say, more money is spent on locks of doors, because if anyone were to steal there would be no lack of the locks on doors, because all the industry of door locks and mechanisms, safety deposit boxes. There he spends a lot of energy and many resources. Then we could say that if no one were to steal, not to waste much. But the truth is that people steal, unfortunately.But I think that it is very cheap. Make expenses in transactions of bitcoin, it is still very cheap, and the day that we have solutions such as Lightning Network, as it will be cheaper still. What happens is that it still remains so cheap the one layer, the original layer of bitcoin, that really now is not necessary to use other type of solutions. It is my opinion, but I do not see what of the energy, while the market is paying, and we are willing to pay for it, and that is the case. because the miners, benefit of what they do isn’t it? Then, sounds good to me. To have more episodes or early access, before the regular publication, sign up on the Apple Podcast, Anchor, Breaker, Google, Podcasts, Overcast, Pocket Casts, RadioPublic, Spotify, Stitcher, ivoox or RSS feeds.

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