Bisq, the decentralized Bitcoin exchange
Chris Beams joins the show to talk about Bisq, the P2P decentralized Bitcoin exchange and open-source desktop application that allows you to buy and sell bitcoins in exchange for national currencies, or alternative crypto currencies. We get some background on the issues faced by crypto exchanges like CoinBase, and the now defunkt Mt. Gox. We discuss whether or not Bitcoin is a censorship resistant payment system and what it means to have anonymous transaction currency options. Bisq also has an interesting white paper about its own DAO (Decentralized Autonomous Organization) to support its contributors and we discuss that in detail at the end of the episode.
Matched from the episode's transcript š
Chris Beams: Yeah, it always bears digging into that, because for better or for worse, itās not always so obvious today. You were saying a few minutes ago in the interview a lot of people donāt really use cash these days; plenty of people just pay via credit card and so on, and in many places thereās a kind of war on cash. You see this with the demonetization policies that are being rolled out in India, and so on. Many countries across the world are basically disincentivizing people to use cash, and thereās a variety of reasons for that, but one of the effects of that is that increasingly in that environment peopleās financial transactions are under surveillance, right? Itās possible to know, and indeed known, what youāre spending your money on at any given moment. Probably Visa isnāt sharing that information with anyone, but they can, and again, things can be hacked and so on⦠And they certainly do, given certain conditions.
So why does it matter? Well, the reason I was explaining that is that weāve been in this environment for a long time. Weāve all been, not because the U.S. government has been demonetizing the dollar necessarily, but just by choice and convenience, people have just more or less happily moved to using credit cards. I use credit cards, itās useful stuff; thereās nothing wrong with it, right? But the effect that that has is that we increasingly forget over time āWhat value did cash ever have? What is the value of a private financial transaction?ā and I think itās useful here to just jump outside of money for a moment and ask the question āWhat is the value of any private interaction at all?ā
[36:15] Itās been a while probably since many people listening to this have sent a physical letter to a friend or a relative, but weāve probably all done it a time or two⦠When you send a letter, you put it in an envelope and you seal that envelope. Doing that doesnāt indicate that youāre doing something nefarious, or that youāre breaking any laws, but itās rather the norm when it comes to sending physical mail. Itās a norm. Weāve grown up in a culture of privacy in that situation, where people would think it quite strange if they just took the whole letter not in an envelope and just slapped a stamp on it. That would feel āHeyā¦?! Every postal handler from here to Poughkeepsie or wherever itās going can read my mail? I donāt wanna do that.ā Thatās the way postcards work, but mostly people donāt write anything of great importance on a postcard, but people do bare their souls, talk about whatās important to them or troubles that theyāre having etc. in letters.
If we take that world of communication and communication privacy to the online world, itās a very different world, right? Because it just happens to be that email, which of course we all use a whole lot, basically never had a good envelope, right? So we live in a culture of openness by default, and we donāt think about it that way; when we send an email, we have this kind of false sense that itās private, because itās just going to the person I send it to, but if we know anything from the revelations over the last years - Snowden and all the rest - the writing couldnāt be written larger on the wall that all your emails are belong to us, name an agency.
So we live in a world - I wouldnāt say for better or worse, I would say definitely for the worse, where everything you do online, certainly with email and in many other contexts, is per default non-private, per default open. We see money no different than this. We see digital money, virtual currencies, cryptocurrencies as no different than the kinds of transactions and interactions people have with speech, with written language etc. The fact that I am buying a coffee or sending some money to my brother to take care of his family whoās just in a ā we were talking about Houston and Hurricane Harvey before the call started, right? Transferring money to my family to help them out in such a scenario or what have you - thatās just nobodyās business but my own and my familyās.
Actually, one argument for privacy is that itās a right, and there actually need be no argument for it. It need not be justified any further than āNo one has the right to force me or to force anyone to be open.ā One ought to have a right to privacy, and thatās actually enshrined in the United Nations statement on human rights and in a number of other contexts, including the U.S. Constitution, and so on.
[39:59] The right to privacy is a long-held tradition, and it just happens to be that weāve been trending and drifting in this direction, especially as the online world has come to prominence, and things like email, weāve sort of forgotten about it. We just happen not to be in that private-by-default environment that physical mail used to be, and thereās no reason not to be private when it comes to Bitcoin, and thereās actually every reason TO be private, because well, do we really want, do we really trust (whether itās) the centralized exchangesā¦? Generally, theyāre just businesses trying to get along, keep customers, keep people happy.
Mostly, thereās nothing nefarious going on with centralized exchanges, but those become information honey pots for other entities, other players - governments, or whomever they may be. People say āI have nothing to hide.ā Well, okay. Does that mean that we ought to just open everything up and give all of our data to anybody who might come along and want it for any reason in the future?
Thatās a big argument for privacy, by the way - the environment that we live in today, especially very lucky people like ourselves living in the States⦠Iām from the States, I live in Europe now, but in general, people listening to this podcast will tend to be people who are living in reasonable enough jurisdictions that probably the most draconian versions of crackdowns and so on donāt happen to individuals; thatās not true of everybody else in the world, and it may or may not be true in the future for ourselves, or for our families or for our children. So we canāt predict the future, we donāt know whatās gonna happen, and you donāt need and value privacy sometimes until you absolutely wish that you had had it. So those are a few reasonsā¦