Why A $1 Million Bitcoin Means A Broken World - Ledger Cofounder, ERIC LARCHEVEQUE

[00:00:00]How do you explain Bitcoin simply to someone who watch this podcast or who listen to this head of bank of France or Switzerland saying that this Bitcoin thing is >> I think it's not about understanding what it is, but why it exists.

[00:00:18]>> Mhm.

[00:00:18]>> I think we need to stop trying to explain Bitcoin in two sentences because it's not easy. You know, there is you can say, "Yeah, it's a decentralized blah blah blah." But people are like, "What?"

[00:00:29]Uh What is important and now, in fact, when all the journalists ask me this same question, I say, "Okay, yeah." But in fact, the real question is why Bitcoin exists and why and what is the problem it solves, you know? And we already talked about it, but I think this is the start. And then the question is how does Bitcoin solve this problem, you know? What are the characteristics of Bitcoin which allows it to solve this problem in the right way, you know, in a And then you can you think to you you talk about a decentralization, about how it can work without a third parties, how the the um the the the the uh the money should I Sometimes, you know, I cannot find my words in English.

[00:01:21]Um how the the the money algorithm, you know, the politic monétaire >> Mhm. Monetary policy.

[00:01:30]>> Yes. Yeah, thank you. How the the monetary policy of Bitcoin works and ensures that, you know, there is no inflation.

[00:01:37]Then you can explain, but I think it's important to start about why it exists and what is the problem it solves, you know.

[00:01:45]>> Can you explain that to my mom?

[00:01:49]So she understands.

[00:01:50]>> Yeah, I I I I think so.

[00:01:54]Uh Uh, because I In fact, the the the route I booked is literally for like months.

[00:01:59]>> Mhm.

[00:02:00]Because I always have this question, you know, of people trying to understand. So, yeah, it's not easy in two sentences because it's you need really to make a case for it. But, basically, um, why Bitcoin exists it's because, um, you don't own your money. That's the first thing. And, just think about your bank account, you know, the money that you have.

[00:02:24]Uh, in fact, you don't have anything. If your bank tells you you cannot access to it, then it doesn't work. You know, if you are a Russian citizen, Putin invites invades uh, Crimea, you have done nothing, but from then a switch happens and you do not have access to the banking system and you have nothing.

[00:02:43]Uh, every everything everyone thinks it's granted, you know? And that's why no one thinks like that.

[00:02:49]Um, but in a world where situation is going the in the for the worse, you know, you can think about situation where when you need your money because you need to escape the country, then no, it's closed. Sorry, there is capital control.

[00:03:04]Uh, you have like life insurance, try to get your money from your life insurance, you know, it's like, why do you need it?

[00:03:10]Take months. No, it's it's not it's not like that. So, you need to have something that you own. And the best example is gold, you know? You can own gold, you know, you can have like gold coins, small gold bars, everything. But, gold has a problem. It's not easy to transport, it's not easy to exchange, it's heavy, and also, are you sure it's gold, you know?

[00:03:38]Uh, because, well, you know, you can have like half gold, half something else. So, it's a real question. So, Bitcoin creates a solution for that, you know?

[00:03:49]And after how it works, we don't care, you know, when you go to the ATM, you put your card in, take 100 bucks, who cares how it works, you know? You just take it it's for granted, but then Bitcoin you have to accept the same for Bitcoin.

[00:04:04]It's just a monetary system that exists in a different layer that gives you access to money that you really own. After you understand that, it takes some time. You know, to and you need to have to explain step-by-steps, you know, that what does it mean to own Bitcoins, you know? It means that you own some information.

[00:04:30]And that it's in fact very physical.

[00:04:33]Then you need more time, you know, to to explain that and that people accept the situation, but basically it's everything about why it exists, you know?

[00:04:43]>> You mentioned before you had these gold bars at this bank.

[00:04:47]>> Yeah.

[00:04:48]>> But it was not your safe deposit.

[00:04:50]>> Yeah.

[00:04:51]>> And therefore you pretty much, I mean, you didn't have access to these gold bars anymore.

[00:04:56]>> Yeah, it was I think mine by law, >> Mhm.

[00:04:58]>> you know, because there are laws, but the reality is that I couldn't access it physically. So, there is a real difference between something you think you own and something you really own.

[00:05:09]>> Mhm.

[00:05:10]And that's the difference between people using crypto exchange like a Coinbase or Binance.

[00:05:16]>> Yeah.

[00:05:16]>> And what we call a cold wallet.

[00:05:19]>> wallet or owning your own keys, you know, not your keys, not your coins is something that maybe some people have already heard.

[00:05:28]Then it, you know, it depends of where, you know, do you put the line.

[00:05:34]Already if you own Bitcoins, you know, and you have them on exchange, then at least it's much better because you have something that doesn't depends of the euro, you know?

[00:05:46]However, uh the question then you need to ask yourself is what is the worst case scenario for me?

[00:05:54]Is it the fact that I get robbed or whatever and at gunpoint I have to give the keys of my Bitcoins? The same thing that I get robbed and I have to give my gold bars that I have in my safe, you know?

[00:06:10]Is it this risk that is the worst or is it the fact that one day for some reason I call the exchange or I ask the exchange to give me my Bitcoins and they either they don't answer or they tell me, "Sorry, you know, you are on a government blacklist or or something happened, you know, there is capital control, the the government is taking all, you know, the crypto uh assets and sorry, we cannot give them to you."

[00:06:39]Um but um after it's a question of of risk management, but at least it's much better to own Bitcoins in any kind of of form.

[00:06:50]>> You move fast, your money should, too.

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