We have your November 2018 Insiders Update and we’re at part five, part five of our five-part series of what is going on in this world, what is going on with the markets, the overall economy, big things, little things, whatever may be. But we have awesome Crypto today, the Blockchain, Hash graph. Just kind of getting into a little bit of a deep dive. We’re not going to go crazy, crazy, crazy long because this could be just hours and hours and hours. So I’m going to actually try to keep this somewhat quick. We’re going to go through some of the bigger points of this and I know I might be missing one or two, but I really want to go through some of the bigger points of this. That way we can get an idea of what’s going on, what is coming in the future because let’s make no mistake, this is coming in the future. One hundred percent without a doubt whether people want it to or not. This is coming. We have many of the big players are already getting this game and they’re doing it behind the scenes. People are jumping out it seems, but there are the big, big institutions, etc, are jumping into this game. It’s publicly known. This is well known. If you’re in the space, you’re actually paying attention, this is well known. So this is happening and it’s going to become a part of our lives. So, what is it, what’s going on, how can it affect us, what’s good, what’s bad -that’s what we’re going to jump into. So let’s jump right into this.
Again, if you want to see the other parts of our series, obviously if you are on Facebook, just go in the past months in the timeline and on the wall there and see everything and see the different parts, insiders updates. We’re talking about price versus value. How to make sure you know the true price of an asset, not measured in dollars, but in terms of actual value, things like that. Kind of breaking down, going through everything, how everything works and some history of currency and history of money, why we’re not on a gold standard anymore, why we have a fiat currency, why we use a currency and not gold anymore and why that’s right or wrong, things like that. So go check those out. If you’re on the YouTube channel, go check out the Insider’s Report Playlist, go check that out and you can go see those there. It’s going to give you a ton of information as to just overall global. We’ve a lot of big things going on right now, obviously. Right now, the G20 is going on. Donald Trump, the president is meeting with all the world leaders right now. So this kind of stuff is being talked about at a conference, at that meeting like that. The Chinese leader is there, the Russian, all the big delegations are there and they are talking about things like this. They’re talking about war, they’re talking about hot or cold war, talking about all kinds of different things and they’re talking about things like this because this is something that every single government is thinking about and has on their mind and is planning for. So we need to plan for that. Everyone needs to plan for that.
So, Distributed Ledger – this is again, without having amazing visuals to be able to kind of show you and talk to you about this, just giving you some brief explanations as to what is going on. Distributed ledger means that this is decentralized, computer networks everywhere that have a ledger of transactions. So if you buy something somewhere and you make a transaction somewhere, this is distributed throughout the entire network. It’s distributed basically just online. So now, not only do you not have your stuff stuck in one spot and then someone’s got to come to get your funds from this one spot or document that transaction in one spot and people have to come now find that, it’s distributed on the ledger everywhere that an internet presence exists. Which wherein lies another problem which is the loss of power. So we can talk about that quick, but if you have a loss of power, so say something happened like a solar flare or an EMP or you name it, something happens at grid goes down, power goes out, then that’s a negative for Crypto and Blockchain in using that digital currency or digital transactions or whatever it may be.
So the distributed ledger is amazing because everything will be in consensus. There is no “He said, She said.” There is no all those discrepancies here, discrepancy there. Everything was recorded at that time on the ledger and it was distributed everywhere in the world. So there are a billion copies. You can never in a trillion years destroy all the copies of that ledger and all that transaction being recorded. The title is going to be recorded, with housing and things like that where you can go instantaneously grab that data from anywhere with an internet connection because you have the distributed ledger at your hands. That’s the power of what is going to be taking place with the distributed ledger. So it’s going to make our lives so much simpler, so much easier and that’s gonna be one amazing thing and it’s in consensus. So when a transaction goes into the fold, like Bitcoin for example, on the Blockchain, there are computer algorithms that are mining there. You hear the term ‘mining’. They’re trying to solve all kinds of math problems. It’s kind of weird. And again, I’m not gonna spend too much time on it because this is really something that you have to do more homework on yourself because I am no expert in it. I have no claim to be an expert, but I want to give you this. This is going to be a part of our life. This is an area that people are investing in. It’s really a new asset class. We have not had a new asset class and in hundreds, thousands of years. We’ve got business, real estate, commodities, and paper. Those are the four asset classes. Now we have Crypto and blockchain. Crypto, that’s a fifth asset class. We now have something totally separate that is a whole new asset class that people can invest in that they can use, whatever it may be.
So they’re in consensus. So the Blockchain things, the transactions all get mixed into literally a block in a group into the internet, a grouping of transactions go in. The mining computers, “mining rigs” they call them a lot of times, they are trying to solve math equations, in essence, to figure out and putting it into the next block. In the Blockchain, there’s one blockchain and then they’re trying to put that next group of transactions into the blockchain. Things are happening so fast and going and going and going on that it usually takes about 10 minutes, it can take an hour for that transaction will be recorded. So if you’re buying something, that trend, it might not be fully available within or it might take an hour to be fully available. Something like that around there. So it’s not the fastest thing in the world that transactions are being recorded and they are being recorded all the time. So that’s happening very fast. The math problems are being solved very quickly by computer, but there are so many transactions going on that it does take a while. Even though it was going so fast, it takes a long time because there’s so much happening, that’s just frankly how long it takes. So it’s pretty remarkable how much is actually moving and going on. When you know how fast it is truly going, you’re like, “Wow, there’s a lot a lot going on.” And so, in saying that, it takes a lot of energy. These mining rigs, these computers that are built to mine and solve these really complicated math problems that once the computer solves that math problem, they’re awarded new Bitcoin. That’s how a new bitcoin is made. So they get awarded the bitcoin there. They basically are deemed that they’re all in consensus. All the transactions in their block made sense. They checked out that the next block on the blockchain and then all the other computers basically have to dump everything they are doing and start over again on a new batch of transactions. Then once in the next computer figures out this really complicated math problem again, then boom, they get the new bitcoin. Their block goes into the blockchain, all the other computers, internet software, boom – drops what they’re doing. The mining rigs, they drop what they’re doing and start out with a whole new block again of transactions and then have to solve a new math. So it goes on and on and on and on, and that’s what happens. But this takes a ton of energy. It takes a ton of energy and there are some different schools of thought here. There are people that say it is not physically possible to run the entire world on bitcoin, on the blockchain because you literally power bankrupt the entire world.
The Byzantine General’s Problem
So people say that would happen. People say it won’t happen. There are other coins now that have come out that are faster and this and that. So that’s all for another day. I’m just trying to get you to kind of see what’s going on. The Byzantine general’s had this problem, right? So when you’re going to attack something and they couldn’t coordinate, you have someone on the other side of the castle, you had a group over here, you had a group in every side of the castle and you couldn’t coordinate the same time. There were no walkie-talkies. There are no cell phones. So they sent a rider, a messenger out to the next group and say, “Hey, go tell them we’re attacking.” Well, you had to send out four at the same time and tell we’re attacking. But then that rider, all of a sudden if one of those messengers went out and then they couldn’t, for some reason that one of the groups couldn’t attack and they sent the messenger back. All the other groups are now starting attacking, but this messenger came back and said, “Hey, don’t attack them, we’re not ready yet.” Or if you send the messengers out and one of them goes and gets killed on the way, or if it maybe it’s a false group over here that, that one group on the west side got taken out and now they sent a fake messenger back and said, no, we’re going to attack them at different time. And there was no way to be a full consensus. They are always that possibility that something was messed up. So that’s the Byzantine general’s fault basically. They were never in consensus. They never knew exactly what was truly going on at the exact same time. So you had to be in full consensus and solve the Byzantine general’s problem. Nothing has ever been able to solve that problem until now until we have the blockchain and these new asset classes. So that’s pretty remarkable because they had to know that everything falls apart. If the Byzantine generals can’t all attack at the same time, the attack falls apart and they retreat, they get killed and it’s not good. So you need everyone to be in consensus for this to work.
So those are some of the things like I said, some of the bad things take a lot of energy. It is slower than say hash graph, which I’m going to talk about briefly here for a second. And it takes a lot of power, the loss of power. If there is a loss of power, like say Puerto Rico. Unfortunately, Puerto Rico has been in dire straits, right? They had the hurricane a year ago and they still have a lot of people without power. So what happens there? How do your bitcoin and crypto work there? Right? It doesn’t because you don’t have power. So you gotta have other safeguards. We’ve talked about the 5G’s before, which you need to have. I always forget all these -Guns, Grub, Gas, Gold, God, that’s maybe six G’s. But I think there’s one where I’m missing. But those are the G’s that you need, but you need more stuff obviously you prepared. You can’t just have one thing. You can’t just have cash in your pocket, you can’t just have crypto, you’ve got to have different things. But again, just wanted to with this quick. You’d have to be ready if something like that were to happen. Just today, we just had again, huge power outage in Anchorage, seven magnitude earthquake hit in Anchorage. I lived there for a couple of years. An amazing place. Just an incredible, incredible place. Praying for all the people here in Anchorage and literally, the epicenter was just North of Anchorage a few miles. So it seems like for the most part people are okay. There is some significant damage. But being prepared, they said about 50,000 people without power. That’s remarkable. If 50,000 people without power, that is like a sixth of the city. I believe there’s like 350,000 people in Anchorage. So a sixth of the cities without power or was without power. So being prepared is always the way to go, right? So we always talk about this stuff. We’ve talked about this stuff many times. You can’t just be in one spot because if one thing happened and wipes you out, that’s not good.
So Hashgraph – really quick. Hashgraph works on gossip protocol. So this is quick, it’s instantaneous. It doesn’t take the power or the time that that bitcoin or blockchain does. So hash graph, basically a really quick synopsis of that is its gossip protocol. It’s computers just talking to each other and telling each other what each other knows. So when one thing is recorded here and then they go to make another transaction, that computer is telling this computer what it knows and then this computer is telling everything it’s ever been told to this computer and they just keep doing this back and forth. So it’s literally instantaneous, they’re always, everything’s always in communication. And don’t ask me how it’s less power, I don’t know the ins and outs of that. I’m not over the Einstein or something like that. But it’s way more to have the mining rig to mine for bitcoin. It’s way instantly more power. It’s almost nothing to do the hash graph and have the computers. It is incredible, but just computers talking to each other. So it’s called gossip protocol and they’re just gossiping and telling each other what each other knows. And that’s it. So it disseminates, everything is disseminated through the network, through the computers just talking to each other, which does seem like blockchain in a way, right? It’s computers talking to each other, but it’s all the mining rigs working on things themselves. And once they figure something out and confirm the transactions, then it goes into the blockchain. Then if in one watching and then everyone stops what they’re doing and starts over again. So it’s a lot of redundancy, a lot of kind of wasted energy, if you will, where the gossip protocol is just everyone communicating everything. Each other knows every single time there’s a transaction going on. So it just happens instantaneously and it’s not redundant or wasted energy. So anyway, the good thing about it also is they’re decentralized. So again, you take out one computer, one mining rig goes down or one computer or your laptop or wherever it is, it doesn’t matter because there are a trillion copies everywhere else in the world. But if you have said just your debit card or your credit card and that gets cut up, that gets stolen, well then what? Then you’re SOL, right? So it’s decentralized. That’s the amazing part about this is you now have this everywhere. You can just have your private key and your public key and usually have a private key. All you need to know is that you can go anywhere in the world and you have that you can send and receive money or send and receive coins, whatever it may be, and do work and not have to worry about that.
That’s what’s truly amazing. There’s something to be said about having that freedom of flexibility. There’s also something to be said about just being totally digital. You have the loss of power, things like that. And then you’re SOL. The government ends up coming in and taking over everything. Well, you’re at the mercy of whatever the government wants to do, right?
There are many different things that are positive or different negatives. This stuff is coming, in what varying degree, who no one knows and we will end up seeing what ends up happening over the next handful of years. But this is absolutely coming and there’s going to be a few rolls. I think over the next 12 months there’s a lot of different ETF’s and different big news coming out with crypto in the next couple of months. It’ll be very interesting to see what happens. It can be interesting. It can be very interesting.
So I hope you guys got something out of this today. As I said, you want to kind of get a quick deep dive into crypto and hash graph, blockchain and what is all going on right now. And hopefully, spark a little bit of interest inside of you. That way you can go study it some more. I love to have these conversations with you and this is something I’ve been studying the last year. I had a couple of people actually on this probably two years ago that question me about crypto and stuff like that. I really didn’t know much about it, so I’ve just been studying and deep diving into the last year or so and probably the last year and a half. I’m just very fortunate for all of you commenting and sending us messages all the time because that’s how we learn. I allow the way I learn also is by teaching it and putting the content back out to everyone else and hopefully sparking interest in somebody else. And I get questions from people that I hadn’t thought of before. Whatever it may be. so if you have questions, comments, concerns, please share them. Please put them in here if you can. And we get a lot of direct message and stuff like that, which we love. But we’d love to have people just get a conversation going on the chat here so everyone can see broken and participate. So I appreciate you guys a ton more than anything in the world and I appreciate your comments, questions, everything. If you know people that would dig these videos, anything, please share with them, tag them and we look forward to giving you many more of these. We have our last video is actually going to be about precious metals. It’s our last Insider’s Report for the year. It’s our part six of six of the Insider’s Report series we’re doing. It’s kind of based off Mike Maloney’s ‘Everything Bubble’ or early warning he put out for what’s coming in the economy over the next handful of years. So I’m doing a lot of it based off of him and a lot of the research I’ve been doing through him and some others. So I appreciate you guys more than anything. I appreciate you so, so much. And please, as I said, share this comment tag, whatever, you know what to do. So I appreciate you guys more than anything and we will see you very soon.