The Exchanges

Q When you say scale, are you specifically talking to the nature of the latency with traditional blockchain or what do you mean by scale?

A So if there's like a bunch of different Lots of types of blockchains, and there's things that are masquerading as blockchains aren't really blockchains. From my perspective, to really get the benefit of blockchain, you need to be secured by something called proof of work, which was kind of true in Bitcoin. It's true for all the different Bitcoins today. It's true for Ethereum, but all of these other networks that are secured by proof of work, um, they limit the scale in order to potentially evade law enforcement action in the future. Uh, so BTC, for example, the popular version of Bitcoin, Only allows its block size to be one megabyte because they want to make sure that everyone can kind of run the node software on their phone or computer in the event that government shut down all the professionalized miners. Uh, and that like kind of extreme libertarian anarchist ideology really pervades a lot of the design and software development decisions where BSB Bitcoin is treated more like a core protocol rather than a software product, kind of like the core protocols we're using right now on the internet, like TCP IP. And as a result, there's no limit on scale. So we've seen, you know, blocks that are hundreds of megabytes on the BSV blockchain. And I think we're going to see petabyte blocks over the coming years.

AI assessment note: “Only allows its block size to be one megabyte... as a result, there's no limit”

Q And when you're raising your fund, obviously you're pitching a certain risk adjusted return. Help me understand. I mean, is that like typical venture where they're pitching 40% plus IRR?

A I don't like to tip, uh, to pitch a typical return. I think talking about targeted return is, I think like a flawed way of thinking about risk and, uh, risk management. So I get asked that question a lot. And I explained the way that I think about risk and potential outcomes, which is I'm a probabilistic thinker. If you're investing in this fund, uh, you're doing so because there's the chance for, you know, much, much higher returns than 40% annually, but you also have to accept the risk that, you know, it could be much lower. There could be a negative return on capital. So I think that kind of the amalgamated, um, Outcomes together. So Nathan, your poker player said a little bit of poker, like Monte Carlo simulations. If we were to run the universe a million times and add them all up together, I think the expected value of the fund is quite, quite high. It's not usually a good, uh, idea from a legal and regulatory perspective to give specific numbers, but I think that, you know, if we're right about, uh, this BSV thesis, I think there's the potential for very high returns and I can't speak to our track record to date, which, uh, you know, since we've been investing in the BSV ecosystem, which has been a little under two years, uh, that opportunity fund is up over 400%. And this is a product only for, uh, accredited and qualified clients.

AI assessment note: “I don't like to pitch a typical return. I think talking about targeted return is”

Q Yeah, interesting. Okay, and then look, as a SaaS podcast, it would be remiss for me not to ask you a SaaS related question. What, what, what does sort of, I don't know, blockchain in general mean for SaaS companies? Like are, you know, there's a lot of SaaS companies getting very high valuations now that are like SaaS plus marketplace. Should they be thinking about, about Bitcoin and blockchain?

A Yeah, I mean, I think it's kind of similar to the internet, which is, you know, we're in kind of that mid-nineties equivalent, where there's like a few Uh, people and companies that are really using it, but for the most part, the market isn't really, uh, looking at how it's going to affect their business. And now, 25 years later, we've seen that it has pervaded not just every business, but the way that we organize as humans and interact around the world. So I would say the same thing for a blockchain that scales, of which today, BSV is the only blockchain that is trying to fulfill that. So the areas that we're investing in are companies that make it easier to do things like micropayments. So for example, You know, if you want to go read an article in the New York times, the wall street journal or all these other things now, unless you have paid for subscriptions on all those accounts, you're going to be, uh, uh, paywall that's at some point. But if you had kind of this casual online cash relationship where you say had your Bitcoin wallet loaded with however much Bitcoin or the USD equivalent in a stable coin on that wallet, you can then just be charged for the individual pieces of content that you read. And I think this will spur new business models that weren't possible before.

AI assessment note: “I think this will spur new business models that weren't possible before.”

Q And you believe part of your thesis here is you believe Craig Wright is, is the, you know, the creator of Bitcoin. Why, why do you believe this and why are you betting on him?

A So first off, I'd say most of our thesis and our focus on the reason we're really long BSV and not other blockchains comes from the technology of Bitcoin and is, doesn't have to do with Craig Wright, but yes, you are correct in that I do think that Craig Wright is very likely to be the creator of Bitcoin. And I would say that, you know, the, the dominant view right now is there's a lot of evidence. You say like a fraudster or a scammer, and there isn't a lot of evidence that he is the creator of Bitcoin where I would kind of turn things on its head where I personally haven't seen any compelling evidence of him doing kind of unethical things or being a fraudster the way that a lot of, uh, those arguments are painted in kind of the crypto media. Um, And I think he has a lot of incentive to not reveal that he is Satoshi in the way that most, I think, want him to, or think that he's incentivized to. So there's not a lot of evidence that he is not. There's a good amount of evidence that he is. Um, and most importantly, there's a lot of game theory around why it doesn't make sense for him to say, reveal it to everyone, where I think people kind of take it as a given that, um, Craig, if he was Satoshi, would need to want to have this incentive to prove it to everyone. But, you know, kind of a question for you or those listening is if you had tens of billions of dollars in Bitcoin, whi…

AI assessment note: “I personally haven't seen any compelling evidence of him doing kind of unethical things”