In which Jerod, Nick, and KBall play the most preposterous round of âExplain it Like Iâm 5â in human history. Then we dig in to Vite a little further than is advisable on a podcast. Finally, we talk about our Quiz Show app that powers JS Danger. Youâre welcome!
Matched from the episode's transcript đ
Jerod Santo: So, since Bitcoin is back in its bull run⌠Itâs just been a few years in a bear market and then came roaring back from something like $4,000 a year ago, to 60k per coin, and around there today⌠People are interested once again in this crazy world of cryptocurrencies, and so we thought itâd be fun to explain Bitcoin like youâre five, because it is a difficult thing to explain, difficult to talk about, a lot of ins, a lot of outs, a lot of what-have-yousâŚ
[19:57] The first way I would like to explain this is by stealing a tweet from Theophite on Twitter, which I thought that was a hilarious way to explain Bitcoin⌠Somebody tweeted out âI still donât get Bitcoinâ, and Theophite replied âImagine if keeping your [unintelligible 00:20:13.18] for 24/7 produced solved Sudokus you could trade in for heroin.â [laughter] Thatâs pretty classic, right?
So of course, thereâs your bear explanation, and there are lots of downsides with Bitcoin specifically around energy use and whatnot⌠But there is also some real value to the network. And Iâm not gonna explain how Bitcoin works like weâre five, but I thought maybe Iâd try to explain why some people think itâs valuable like youâre five⌠So here we go.
Imagine that youâre playing Monopoly with some friends⌠And one person decides - maybe theyâre the homeowner. Usually house rules⌠They decide that theyâre gonna be both the banker and the rule enforcer. Pretty typical. Everything starts off okay, but then the banker starts doing some things that you donât appreciate as someone who plays the game. For example, they start injecting new money into the game, but not equally to everyone. Just to themselves and some of their friends.
They change the rules about how much money you get for passing Go, what you can go to jail for and for how long, they create over-the-top transfer fees and laws about who can trade with whom, etc.
Eventually, you and a few other people in the game decide that you want to transact without the bankerâs rules, permissions, fees and so on. But you canât use the Monopoly bucks, because the banker runs that whole system of things. So instead, you start a grouptext on your phones. And each time you wanna transfer money to and from each other, you put that in a text. Maybe you text âIâll send five Schrute Bucks to Kball.â And then you text that out.
Everyone involved in this new way of sending money is in the grouptext, so thatâs how you keep each other honest. Bitcoin is the grouptext. The end. What do you think?