00:01 hey everyone the $14,000 refund that I
00:05 got a week or two back got duplicated in
00:08 the traditional financial system which I
00:10 thought was just a a literal ridiculous
00:13 joke and I wanted to tell you the story
00:15 to understand how groundbreaking Bitcoin
00:19 is because that would never happen in
00:21 Bitcoin and just how sort of antiquated
00:23 and ridiculous riding around in the
00:26 horse and buggy of the traditional
00:28 financial system is okay so here’s what
00:30 happened i had made a loan a year or two
00:32 back on something for $14,000 at some
00:35 point I was going to get that money back
00:36 i didn’t know when suddenly boom out of
00:38 the blue it shows up and so I tell the
00:41 person who calls me and said the check
00:43 came in to go deposit it and without
00:45 thinking I told them to deposit it at
00:47 Trustmark because I thought it doesn’t
00:49 matter what bank it is in i’m going to
00:50 suck it right out of that account and
00:52 buy Bitcoin with it immediately well I
00:54 had forgotten that Trustmark about a
00:56 year ago had disabled my ability to link
01:00 uh cryptocurrency
01:02 platforms using the automatic Plaid
01:04 integration so all of the mobile apps
01:07 and uh consumer financial websites and
01:09 all of that all use plaid pl aid and
01:12 that is the integration they use to the
01:14 traditional financial system to let you
01:16 you move money back and forth but I
01:18 forgot that Trustmark had disabled the
01:20 Plaid integration for reasons I don’t
01:22 know and when I call their helpline they
01:24 can’t tell me and they say it should
01:26 work and it doesn’t and all this sort of
01:27 stuff anyway I did not think about that
01:29 so I told the person who called me to
01:31 deposit the check in Trustmark and I
01:34 would just pull it out of that account
01:36 without I had forgotten that I couldn’t
01:38 so anyway the money goes into Trustark
01:40 so as soon as I try to pull it into uh
01:43 to buy Bitcoin I am reminded that the
01:47 Plaid integration doesn’t work and
01:49 therefore the money is stuck so I think
01:51 well the logical thing to do is to move
01:53 that money over to my Wells Fargo
01:55 account which definitely works just fine
01:57 with Plaid that’s how I do most of my
01:60 buying or in rare occasious occasion
02:02 selling if I need to make a big purchase
02:04 of Bitcoin with my Wells Fargo account
02:06 so I go in the Wells Fargo account and I
02:08 link it to my Trust Mark account which
02:11 works fine it looks like it’s going to
02:12 work okay so then I I tell it to pull
02:15 $14,000 from my Trust Mark account into
02:18 my Wells Fargo account it says it will i
02:21 complete it and then it says “Hey it
02:24 looks like it will will be successful
02:26 your money will arrive in 4 days because
02:30 this was the Friday before uh before
02:33 Memorial Day so if I you initiate it on
02:35 a Friday it doesn’t arrive on Saturday
02:38 or Sunday or Monday you got to wait till
02:41 Tuesday which that’s the first most
02:43 ridiculous thing about the traditional
02:44 financial system is how slow it moves so
02:46 I want to move money between two banks
02:49 that I control that I own that have the
02:52 exact same name on the account and
02:54 literally it takes 4 days to move money
02:56 so as soon as it told me it was going to
02:58 take 4 days I decided I was not willing
03:01 to wait 4 days and so I was like “Okay
03:04 here’s what I’m going to do um I don’t
03:06 know how long it’s going to take but I
03:08 wonder if I can link River uh because
03:11 River allows you to link to a bank
03:13 account with just the uh the routing
03:16 number and the account number so I’ll do
03:18 that i’ll link River instead of Coinbase
03:21 Advanced which is what I was planning to
03:22 use i will link River to Coin uh to my
03:26 Trust Mark account and I will suck the
03:28 money out of my Trust Mark account that
03:29 way uh because I can’t uh I can’t suck
03:32 it to Coinbase because Coinbase does not
03:34 allow you to link an account with the
03:37 routing number and uh account number you
03:39 have to actually log into the account
03:41 from the interface you can’t just link
03:42 it by routing number and uh account
03:45 number so I linked River and I bought
03:48 $14,000 of Bitcoin on River and it went
03:51 through and the the Bitcoin showed up in
03:53 my account and all was good now at this
03:55 point my $14,000 has been duplicated
03:59 because Wells Fargo shows that I have an
04:02 extra $14,000 in that account that it
04:05 says will you know be available to me in
04:08 4 days but it showed up in the account
04:10 right away as available balance like I
04:12 can use it i can write checks i could
04:15 have bought Bitcoin with it a second
04:16 time anyway um so Wells Fargo right
04:19 after I initiated the transfer showed up
04:22 that the $14,000 was available but over
04:24 here on River they show that the same
04:27 $14,000 is also available to buy Bitcoin
04:30 which I did immediately okay so the
04:33 question is who has the
04:36 $14,000 either Trustmart gave it to
04:39 River for the for the Bitcoin that I
04:41 bought or Trustark gave it to Wells
04:44 Fargo for the transfer that I initiated
04:47 now I went 5 days not knowing which was
04:50 which um I did not know if I was going
04:53 to get a message from River saying “Hey
04:55 your uh transfer actually failed and
04:58 we’re reversing the transaction.” Um
05:01 which I thought was unlikely because I
05:02 had already bought Bitcoin with it um
05:04 although most cryptocurrency platforms
05:06 do not allow you to move the Bitcoin off
05:08 of them immediately for that reason they
05:11 have to get final confirmation from your
05:13 bank that the transfer actually settled
05:16 and settlement in the traditional
05:18 financial system takes anywhere from
05:19 days to weeks or even months uh so for a
05:22 transaction like that it would typically
05:23 be days so River is not going to let me
05:26 move that Bitcoin off of their platform
05:29 until they get final confirmation that
05:32 the transaction settled with Trustmark
05:34 which is intended to catch things like
05:35 this where it’s duplicated in multiple
05:38 places but the fact that it even can be
05:41 duplicated in multiple places shows you
05:43 how ridiculous the traditional financial
05:45 system is that they can’t even that it
05:47 takes them five days to figure out where
05:50 my money is and that in that 5 days I
05:54 could have went and bought two different
05:55 things with the exact same money which
05:57 is called a double spend and I’ll walk
05:60 you through how Bitcoin prevents that um
06:03 okay so so I wasn’t sure which of those
06:05 was going to uh fail i thought because I
06:07 had initiated the transfer on Wells
06:09 Fargo first that Wells Fargo should have
06:12 gotten to the money first and therefore
06:15 River should have come back and said
06:16 “Hey it failed.” But actually 5 days
06:18 later the reverse happened the
06:20 transaction on River went through even
06:23 though it was initiated second and I got
06:26 a notice from Wells Fargo saying “Hey
06:28 your $14,000 transfer actually failed
06:31 and we have you know we have updated
06:34 your account balance to no longer
06:35 reflect that $14,000.” Now in that time
06:38 I actually thought about because Wells
06:40 Fargo is linked to Coinbase I thought
06:43 about buying $14,000 a second time with
06:46 the exact same money just to see what
06:48 was what would happen i knew it would
06:50 get reversed somehow either it would get
06:52 reversed on Coinbase or reversed on
06:54 River but I wasn’t sure if that was like
06:56 you know against the terms of service or
06:58 somehow illegal and I didn’t want to get
07:00 in trouble so but I thought about doing
07:03 it i thought you know what it would be
07:04 fun to actually buy Bitcoin with the
07:07 exact same $14,000 twice and then just
07:10 see what happens and try to move both of
07:13 those $14,000 transactions into cold
07:16 storage uh where it can’t be reversed
07:18 because once it’s moved to Bitkey uh
07:20 it’s not a reversible transaction now
07:23 for that reason I am certain that
07:25 neither Coinbase or River I’m certain
07:28 that both of them would not have allowed
07:30 me to remove it from their platform
07:32 until they got final confirmation from
07:34 Trustmark that the money had indeed
07:36 transferred so it’s not like I had a
07:38 real shot at duplicating the transaction
07:40 but I was I thought about trying to you
07:42 know see how far I could go with it and
07:45 just and just see what happens like what
07:47 happens if you suck the same money out
07:48 of the you know one account two
07:50 different ways buy Bitcoin with it and
07:52 try to you know download it to your Bit
07:54 Key off of both platforms separately uh
07:57 I’m sure it would not have let me
07:59 because you know the the traditional
08:01 banking system has checks in that it may
08:03 take 5 days but they eventually will get
08:04 around to reversing it um but I was just
08:06 curious what would happen okay so um so
08:10 ultimately I got the notice from Wells
08:11 Fargo saying “Hey the the transaction
08:13 failed were adjusting your account
08:15 balance and because I had not actually
08:17 done anything with that money in my
08:19 Wells Fargo account uh obviously there
08:21 was no harm done it was just my Wells
08:22 Fargo account showed a artificially high
08:25 $14,000 extra balance in it for 5 days
08:29 now I keep my bank account’s balances
08:31 extremely low basically just high enough
08:33 so that I don’t bounce a check if I have
08:35 to write a physical paper check to a
08:37 babysitter or something like that if I
08:39 have a babysitter or something that does
08:41 not take Bitcoin um but I keep my bank
08:43 account balances low uh because I don’t
08:45 want to have fiat currency i want to own
08:48 as much Bitcoin as possible not pieces
08:50 of paper that the government prints out
08:52 of thin air uh so anyway so that is the
08:54 story of the duplicated $14,000 now what
08:57 does Bitcoin do in the Bitcoin ecosystem
09:00 the Bitcoin monetary system the system
09:02 with Bitcoin is money what does it do in
09:04 that situation well it’s called a double
09:07 spend and the entire genius of the
09:10 invention of Bitcoin was the ability to
09:13 solve that problem in a decentralized
09:15 way because in this case you have to go
09:17 to a central authority like the Federal
09:20 Reserve which is the US central bank at
09:22 some point and say “Okay who actually
09:23 owns what where is the money?” Or you
09:26 have to go to Trustmark and say “Okay
09:28 Trust Mark who actually did you give the
09:30 money to?” And you know both of these
09:32 people are showing that you gave it to
09:33 them but who actually got it because
09:36 they’re both showing that they both
09:38 received it so anyway um so in a
09:41 decentralized system with no single
09:43 entity in control the question is how do
09:44 you do that and that was solved with the
09:46 blockchain the blockchain is the
09:50 immutable 100% certain you know absolute
09:54 record of truth of every Bitcoin
09:56 transaction that has ever happened in
09:58 all of history and the entire chain is
10:01 audited and secured by the Bitcoin
10:03 miners with a new block created every 10
10:06 minutes and in that new block it
10:09 validates secures and audits every prior
10:11 block and then stamps on top of it a set
10:15 of new transactions that are effectively
10:17 set in stone so um if you think about it
10:21 uh it’s like cement drying right so when
10:24 you pour fresh cement you can sort of
10:26 draw your initials in it for a few
10:27 minutes or whatever but if you got some
10:29 10-minute quick drying cement every 10
10:31 minutes that cement is going to dry
10:33 absolutely irrevocably or irreversibly
10:35 hard and you’re going to know the
10:37 absolute record of truth so uh in the
10:40 Bitcoin blockchain with the uh you know
10:43 the invention of the Bitcoin blockchain
10:45 it solved the double spin problem
10:47 because the Bitcoin blockchain only ever
10:49 has one record of who owns what now
10:53 technically it’s slightly more
10:54 complicated than that i will not go into
10:56 the you know every finer technical
10:58 nuance just for the sake of simplicity
11:00 of this video but the uh the the genius
11:03 of it in simplified terms is that
11:04 there’s only one record of truth it is
11:06 the Bitcoin blockchain and the Bitcoin
11:08 blockchain does not lie so as a result
11:10 of that I know with absolute certainty
11:14 who owns what Bitcoin if I transfer
11:17 Bitcoin to two different people the same
11:19 Bitcoin to two different people the
11:20 blockchain is only going to show one of
11:22 those people and it’s going to be
11:24 whoever I transferred it to first so you
11:27 don’t have these situations where for 5
11:30 days two different recipients think that
11:32 they both got $14,000 and nobody knows
11:35 for sure and I could have for example I
11:39 could have written a $14,000 check to
11:40 buy a used car and I think it would have
11:43 cleared or at least they you know the
11:45 Wells Fargo would have said “Yeah the I
11:47 mean the money is here.” Um so I could
11:49 have bought a used car i could have
11:50 bought two different used cars with the
11:52 same
11:53 $14,000 and at some point somebody’s
11:56 going to end up shorted because they
11:58 don’t actually have the money trust Mark
11:59 actually didn’t give the money to uh
12:02 Wells Fargo and in this case River
12:05 Financial uh River which is a
12:07 cryptocurrency exchange but um but again
12:10 the way the traditional financial system
12:12 is set up the delay in settlement the
12:15 delay of at knowing with absolute
12:17 certainty where the money is creates
12:19 these weird and awkward abilities to
12:21 double spend now again they have lots of
12:23 checks and balances and that’s why when
12:25 you deposit a check at a bank they
12:27 typically put like a 7-day hold on it
12:29 and that’s because they’re trying to
12:30 wait to make sure you didn’t deposit an
12:32 identical check at a different bank for
12:34 the same money so you know that is why
12:39 they do what they do um but with the
12:41 Bitcoin blockchain it avoids all of that
12:43 you don’t have to have all of these
12:44 ridiculous fiveday you know settlement
12:47 because the Bitcoin blockchain only has
12:48 one record of truth and that was the
12:50 genius the genius well there was a bunch
12:52 of genius uh sort of developments with
12:55 Bitcoin one of them was decentralized
12:57 money the absolute certainty that there
12:59 will only be 21 million even with no
13:01 single entity or single country or
13:03 single anything in charge uh the way the
13:06 Bitcoin blockchain works uh and the way
13:08 they the way the Bitcoin nodes and the
13:10 Bitcoin miners work to absolute
13:12 guarantee with absolute certainty that
13:13 there will only be 21 million Bitcoin
13:16 was probably the biggest genius
13:18 invention of Bitcoin second to that was
13:20 the ability to have an absolute record
13:23 of truth with the blockchain on who owns
13:26 what and avoid which avoids double spins
13:30 the uh efforts by people to spend the
13:32 same money in two different places which
13:34 again is a very hard problem to solve
13:36 because in the case of uh electronic
13:39 currency again if I’m trying to spend
13:41 money in Thailand and I’m trying to
13:44 spend money in the United States if the
13:46 money is electronic then it’s really
13:48 hard to figure out wait which one
13:50 happened first am I spending the same
13:52 money in two different places hoping
13:54 that neither party on each side will
13:56 figure out that the money they got is
13:58 not the real you know is not the real
14:00 money that will clear and again Bitcoin
14:02 solves that with its genius of the
14:05 creation of the Bitcoin blockchain so
14:07 anyway um instead of taking days or
14:10 weeks or months to settle transactions
14:12 Bitcoin can be transferred instantly
14:14 anywhere in the world in seconds and the
14:17 entire blockchain is audited secured and
14:21 stamped in permanent you know cement
14:24 every 10 minutes when a new block is is
14:26 uh is generated which means even for
14:30 billion-dollar transactions the
14:31 recommendation even for moving billions
14:34 of dollars around on so forth let’s
14:35 let’s assume somebody is buying I don’t
14:38 know an oil field something like
14:41 something insanely expensive with a
14:43 transfer between you know sovereign
14:45 nation states and it’s ridiculously
14:48 expensive and it only uh that transfer
14:52 can only happen once and it’s completely
14:54 irrevocable as in once you surrender
14:57 control of whatever it is that it
14:59 absolutely positively
15:01 uh you know there’s no way to get it
15:03 back even in that situation
15:05 the most conservative people would say
15:07 “Okay if you want extra security on the
15:09 Bitcoin blockchain wait for six blocks
15:11 that’s the magic number wait for six
15:13 blocks.” Even if you’re if you’re
15:14 settling billions and billions and
15:15 billions of dollars and you just want to
15:17 be super super sure about it wait an
15:19 hour if you want to be you know
15:23 99.99999% sure wait 10 minutes and just
15:26 make sure that the next block has the
15:29 transactions in it and a block can never
15:31 spend the same Bitcoin twice so when you
15:34 transfer bitcoin and you see it uh it
15:36 says confirmed that’s the word uh when
15:39 it’s it is confirmed that is means it’s
15:41 been included in a block by one of the
15:42 miners which gives you almost complete
15:45 virtual certainty uh but if you want to
15:47 wait six confirmations which is 1 hour
15:50 six 10-minute time frames then that is
15:53 effectively the transaction is buried
15:55 under such a um thick layer of
15:59 impenetrable unalterable irreversible
16:02 cement that you can settle transactions
16:05 even in the billions of dollars with
16:07 settlement times of an hour so literally
16:09 you could show up for a multi-billion
16:10 dollar transaction to transfer ownership
16:12 of an oil field you start the
16:14 transaction with Bitcoin and you sit
16:17 down for a cup of coffee and a chat and
16:19 at the end of an hour uh the transaction
16:22 is buried six transactions six
16:25 confirmations deep in the blockchain and
16:27 you can get up and walk away knowing
16:29 that you can you know hand over the keys
16:32 to a multi-billion dollar oil field or
16:34 whatever and there’s absolutely no way
16:37 that that is going to get reversed in
16:39 some way so in the traditional financial
16:41 system you can’t do that if you try to
16:43 use gold it’s going to take a huge
16:45 amount of time and energy to essay the
16:47 gold to make sure it actually is gold
16:49 that there’s not actually tungsten
16:50 inside the gold bars so gold is really
16:53 hard to settle us dollars are also
16:54 really hard to settle because again it
16:56 takes days or weeks or in some cases
16:58 months to have absolute certainty that a
17:01 transaction has happened that it’s
17:02 irreversible that it hasn’t been double
17:04 spent and all of that just like my
17:06 $14,000 so bottom line with all of this
17:09 is every time I interact with the
17:10 traditional financial system even if
17:12 it’s trying to just get money out of it
17:14 to buy Bitcoin I run into this stupid
17:17 ridiculousness of how insane it is that
17:21 $14,000 can appear in two places for at
17:24 the same time for five solid days before
17:27 I find out which one of them actually
17:29 got it and it reminds me of the genius
17:31 of Bitcoin where that can never happen
17:34 because due to the due to the uh the
17:37 genius of the blockchain and the
17:39 immutable irrefutable you know uh always
17:42 reconciled ledger of who owns what you
17:45 can have absolute certainty and the
17:47 settlement time of Bitcoin is uh with
17:50 abs you know with settlement for
17:52 anything but the largest transactions
17:53 happening in 10 minutes and even the
17:55 largest transactions of billions or tens
17:57 of billions of dollars taking taking at
17:60 most an hour if you want to make sure
18:02 it’s buried at least six blocks deep in
18:04 the blockchain which just gives you
18:06 extra extra extra assurances um anyway
18:09 the whole thing of Bitcoin is genius if
18:12 we lived in a entirely Bitcoin world
18:15 which we will someday then the refund I
18:17 got would have been in the form of
18:19 Bitcoin whatever that
18:21 was.15 Bitcoin or I don’t know whatever
18:24 it was uh let’s call it 0.15 it’s
18:27 whatever $14,000 was when Bitcoin was
18:29 $109,000 so you know
18:33 14109s which is I don’t know more than
18:35 10% but less than 15% whatever that is
18:38 uh it would have just been that much
18:40 Bitcoin and I would have gotten the
18:42 refund in the form of Bitcoin it would
18:44 have cleared and settled in 10 minutes
18:47 and there would not have been any of
18:48 this ambiguity as to who owns what and
18:50 where is the money and can I spend it
18:52 and additionally when you transfer
18:54 Bitcoin around on platforms you don’t
18:56 have to wait for settlement there’s no
18:58 seven nine 10 day waiting period like US
19:01 dollars because if you transfer Bitcoin
19:03 in they know within 10 minutes that you
19:05 absolutely own it because otherwise the
19:09 blockchain would reflect that you don’t
19:11 and if you transfer it out they know
19:13 within 10 minutes that you absolutely
19:15 you know no longer have ownership of
19:16 that Bitcoin because it went somewhere
19:19 else and everybody always knows the
19:21 record of truth because everybody in the
19:23 entire world uh that uses Bitcoin is
19:26 looking at the Bitcoin blockchain and
19:28 there’s only one of those and all the
19:30 computers on the Bitcoin network which
19:31 includes more than 100,000 nodes all
19:34 synchronized to that one version of
19:36 truth and will reject anything that is
19:39 not that version of truth and that is
19:42 how they’re programmed so anyway
19:44 Bitcoin’s genius and it’s only a matter
19:46 of time it’s slowly taking over the
19:49 world obviously there are ups and downs
19:51 on the way up but trajec directionally
19:55 it is always eventually going up because
19:58 Bitcoin is such incredibly superior
20:00 technology to anything else that exists
20:02 in the world uh as money as currency as
20:06 everything else that it’s only a matter
20:07 of time before it takes over everything
20:10 so have a great day everyone and I’m
20:11 here for anything you need thanks
