Alright, welcome back in prospecting show. Today is July 9, 2020. we have branded Patterson on the call are.
Very good, thank you very much.
Awesome, so for the people who end up losing the show, I always have this little intro here where I say what the show is about, we’re looking at the past, the present in the future, and before we got on the call gear, we talk specifically about you and how you wanna focus on future here, ’cause you have some predictions, some ideas about what the world is gonna look like, not only post-code, but also what the world’s gonna look like as we transition from standard banking and standard financing in the United States over to crypto. Back and crypto-based financing. So what we’re gonna do to understand some time in the show here talking about what you’ve done, but then we’re gonna quickly transition into where you think things are gonna go and some of the trends that you’re seeing.
So first question for you to, where did you come from and kinda give us a background on who you are and what your special in.
Sure, as we had discussed before, I came up through Case Western Reserve University with a degree in Computer Engineering and immediately went into IT consulting with some of the large consulting firms.
I work for two of those over the course of several years and focused mainly on Oracle applications and ERP systems, and the integration of those systems with all the legacy systems solving our customers problems. At one point in time, I decided to leave consulting and move into independent contracting where I worked for some smaller firms and did more IT project management across the entire spectrum of it, from low-level network deployment the whole way through to application design and development, and in the midst of all that, crypto currency came onto my radar and about 2013 where I immediately started mining, and then after a few months of mining, I realized, Oh, it’s a lot easier just to buy this on exchanges, so I started trading and had followed pretty much daily since then, and I listen to multiple podcasts and have a lot of different ideas from a crypto perspective of how industries can be changed and affected by crypto currency, and also how it will influence our future as we move forward into the new world. The CO1 has created… Yeah, so let’s talk a little bit about that because you have some of this experience being your past roles, you’ve been doing some of these consulting and IT-based roles and jobs and consultancies, what did you see in that space that led you to crypto… What was that tipping? How do you get introduced to the crypto currency world?
So actually, it wasn’t directly through consulting and was on my own, I had read an article in laptop Magazine in 2013, and that’s what opened the world up to me, and then I started looking for ways that I could apply that to the consulting work I was doing.
But unfortunately, at that time in the ERP space, there really wasn’t an avenue to connect the cryptocurrency world and the Oracle ERP system at the time, and it just wasn’t popular enough to be used now, I think a lot of companies are looking into blockchain technology or implementing it, I know some of the largest banks in the country, including PC, are already using it, PCs been messing with it since 2016 with RP also.
So at that point, then I started trying to consume about anything I could from the to currency perspective, and one of the first things that got into other than mining and buying Bitcoin light coin was looking at XP and the possibilities of moving I currency from point A to B, specifically cross-porters through their iPlayer. And from there, it just kind of blossomed into a dozen or more other currencies that I kept learning about every time I did another Google search.
Yeah, and for the people who end up listening to this, there’s gonna be a large portion of people who don’t really know what the blockchain is and what cryptocurrency is in Bitcoin and Ethereum and light oils as give us like the 411 on your understanding and your specialty in the blockchain space and solving some of those math-based problems, but then also in the crypto space and talking about biting… Like Break that down for us.
Sure, so the easiest thing to understand it first is a blockchain, and basically think of it as a book, and each block in the block chain has a reference to the next page in the book and the previous page in the book, and each block contains the transactions that occurred during that time.
The minors job is to verify all the transactions in a current block, and the first one to do so that says, Oh, I’m on validated every transaction.
Here’s the next Lock and it sends it out.
So that’s sort of the way the block chain works, the transactions of her in any number of ways, using the different occurrences, and specifically, there’s a blockchain for Bitcoin, there’s a blockchain for ether of… There’s a block chain for RP, which is Ripple labs, cryptocurrency, same thing goes with pretty much every other crop of currency now, the coin was originally created, at least from my perspective, as a store of value, it was designed to be a currency other crypto-currencies have a project behind them.
So for instance, when I talk about ripe as RP, the idea there was to facilitate cross-border transactions of four ency… When you look at Stellar, which is pretty much back by them right now, their idea is to do consumer transactions and move money from person native versus be… All of this is based on the same underlying technology of blockchain, in each Percy, as I said before, has its own blockchain, but the difference is Bitcoin was supposed to be a store value I get in that gold, and the other ones all have some type of project I give you another example. parted is a decentralized storage solution which is taking on folks like Microsoft Azure and Amazon websites is… So there’s a whole spectrum of different projects out there and different crop Tamarin is…
I think the last count. There’s over 5000 the point.
Yeah, and so you talked a little bit about decentralization, so again, for the people who maybe have heard that term and associated with Blockchain, some of these coins, what actually is the theory of decentralization?
So decentralization, there’s kind of two parts to it here, There’s distributed networks and there’s decentralized networks, and basically what we’re doing is with blockchain, which is a hybrid of the two, you are pushing the processing out to the nodes on the network rather than having a centralized server, that does all the processing for you, and then part two of this is, you have multiple connections in multiple pass between any node on the network, and note could be something as small as somebody running a PC at home that’s running a node for a particular block chain, and what happens is the processing is pushed out to the node, and the nodes communicate directly with each other without a centralized server in the middle, so this thing operates essentially an autonomously from a centralized solution and thus takes control away from any central authority. So when you think about Bitcoin, the coin has no government that controls it, it is decentralized and distributed distributed, whereas the US dollar has the Fed behind it, right in any other country, they have their central bank system, it controls their individual fee currency.
So cryptocurrency takes the power away from those authorities, and that’s some of the reason the governments like this like… And one of the reasons that the US government was scared to death when Facebook announced Libra, because suddenly you had a company that has a user base of 23 billion people that are about to start using a crypto currency, which would take the power away from the central banks, and that’s… We came under such scrutiny as soon as it was announced, we actually believe before it was involved in… To go down that pathway, I know there’s not tons of information on it, there’s some speculation on what not would… Maybe break down what the Libra looks like. I know it’s a con and it’s something that is Blockchain-focused, who we entered in your words, what are they trying to do, what’s the solution that Facebook is trying to create there, and how does that coin or… Well, I…
Libra is really stalled at this point, from what I understand, I got cut up in a lot of government regulation, but in general, and at a simple level, Facebook wanted to create their own coin to be able to move money and make payments through their own system. The problem with that from the government standpoint was they have such a massive user base, it is more people have Facebook accounts, then are committed to Christianity, actually, I think it’s 23 billion to 22 billion, believe it or not.
So it was simply an alternative to the US dollar, however, it had such a large user base that it could really take power away from the US government media, now the investors behind it.
And I’m a minutes, I’ve read the white paper on this, there was a very lucrative scheme for the folks that we’re going to fund this project, and when some of the big companies signed on, I believe some of the credit card companies and various of the technology companies signed up for their, I guess, prospect to make money on this thing was Unbelieve, because they were going to make money in a… The people that were putting money into the system and they would earn interest in that, or everybody else’s currency while I was sitting in there being held for the Libra that they had in their wallet, so I think that probably was an issue as well, but right now, Libra is pretty much caught up in a lot of government framework as far as I know, or a government red tape and is not really moving forward at this point, unfortunately, and since you seem to be having a positive outlook on blockchain applications and really the currencies like the actual Bitcoins and theorems, and essentially Libra, as time goes on, there hasn’t been an adorable so far of US wide or worldwide, there’s… To some people who still haven’t bought into the whole blockchain concentrate, people who haven’t bought into crypto currency and all that, so where do you see the adoption of this in the marketplace, do you think it requires everybody to buy in the US dollar only works because everyone within the country as agree that that’s a currency, where do you see the kind of hiccup right now in the crypt over rent space?
The biggest one right now, if you talk about using Bitcoin as a payment method is the number of transactions it can do, it can’t handle tens of millions of transactions per second, which is one of the big things that they have to stall. There are some other problems, nothing that major, but about block block size and things like that, but really it comes down to it, if you think about it, why would you want to store?
You’re a value in a currency that can be controlled by a government, it could be devalued by a government, I think about your US dollar room now, a grand US dollars are the currency of business, and if you’re going to make a business transaction right now, it doesn’t matter where you’re from, likely it’s gonna be transacted in US dollars, but the fact remains, the US government has just central ions of dollars literally just printed them, and for now, we’re propping up our businesses, the stock market, or citizens with money that has just been printed essentially we’ve devalued our own currency, it just hasn’t… Or people just haven’t realized it yet for some reason, something like a Bitcoin or Ethereum or any of the other cryptocurrencies, they are not controlled by a government, so they can’t be… You can’t just put it more, this coin, and it can’t be the valued like that, and because of the way it’s produced, the coins, technically a deflationary currency, so over the… Was the long-term… Your big point should be worth more, every time, less produced. So every four years, there’s what’s called a habit, and when I was explaining about miners validating the transactions in a block a few minutes ago, by validating all the transactions in a block and being the first one to do that, the miners get a reward.
Now that in May of 2020, that reward dropped from provan, a half bit coins to 625 Bitcoins in approximately May have 2024, that reward will have again, and when you start producing less and less of an asset and you have the same amount of money flowing into the market, then that should be good for the asset as it should increase in value, the biggest thing is we have to have a parallel system that uses only cryptocurrency, so for instance, if you wanted to really switch, we need a business that can create its own business, build the building by whatever systems it needs, pay the electricity bills and accept cryptocurrency as the method of payment, so it needs to be able to use crypto for everything it needs, and it needs to be able to accept this payment.
It would be a wonderful thing to be able to do that today, but I don’t think it’s quite possible yet, there’s going to be a transition as businesses started accepting critter and seeing somebody large Amazon already has… I believe you can use Bitcoin and the Ethereum right now on Amazon to make purchases. And you’ve been able to do that on overstock for years, and a lot of other businesses as well, but they’re in a transition phase, and where that transition we end up… Nobody really knows in this time, because big coin may or may not be the end solution, there may be something else that comes along that is better in the future, but at this point, we don’t have that yet. So think of that, we’re in a transition phase, and eventually we’ll get to a point where we will hopefully be transaction all encrypt of at least that would be my belief. In hope.
Yeah, and so do you have any… I think a lot of people who look at crypto in the beginning and some of the government and regulatory agencies are looking at it saying, Well, in historically, these currencies have been used for illegal activity, right, buying stuff online that is not traceable and not tractable. A lot of other things have happened that, unlike the US dollar, it can’t be tracked.
So do you think that some of the adaptability is gonna come down to whether or not people believe that the currency will be used maliciously… Well, it has been used maliciously in the past, but ironically, that’s the thing that actually gave it credibility, that it could be used as a means of transferring value now, contrary to popular belief, every single transaction that’s on the block chain, especially when we talk about Bitcoin, can be viewed and can be tracked, so we know where it’s come from and where it’s going to… It’s not something that every single person can do. There are tools to watch this, but it’s not anonymous people think it is.
Now, on the flip side, one of the things that block chain technology is enabling is actually private messaging, so there are new messaging services that have just come out, status is one of them in DC chat, which is being propagated by unstoppable domains, are completely private messaging services where you can control it and nobody has access to it, and it goes away when you’re done with it, so it’s enable in privacy in areas where we want privacy, and IT is providing transparency and areas where we really do want and need transparency.
Yeah, that’s interesting. In that plan, I think comes down to the education. Right, I ask that question there, and obviously a lack of understanding of how it’s working, do you see a future where there are multiple coins that are standard ly, except that… I know, like you said, there’s 5000 different options right now, but obviously not all 5000 would be the currency in all countries all the time, I don’t see that being practicing the US can barely handle one currency now, remind bringing like The Kain dollar. So how are they gonna handle multiple points… Yeah, you’re exactly right. And I think in the long term, it’s going to come down to probably one coin that will be used as a global standard, maybe that’s a Bitcoin, maybe not. I think there will be other coins used for special purposes, for instance, interim, yes. You can purchase things with Ethereum right now, you can send and receive if they’re in to other people, but the true purpose was to be fuel to feel the smart contracts on the Ethereum network.
That may continue to be the case, and ether may continue to be the fuel on a network and possibly used as a store of value as well, but I don’t think we’re going… We are going to have hundreds of coins that are used to transact and make purchases around the world, that would completely defeat the purpose. The idea would be to have one coin that you can use anywhere in the world, I think of how nice that would be. That if I had to go to Europe for business and I walk into a pub and I wanna buy lunch, I just scan the QR code, not paying Bitcoin. I don’t have to worry about an exchange rate, I don’t have to look up Currency conversions when I file my expense report for business, it’s just, Oh, you spent 0-001 Bitcoin or whatever it was on lunch.
No conversion, necessary.
And do you think that there will be… This is something that I’ve been thinking about recently is, do you think there will be a time where they re-value the biting… One of the weird things about is that it’s, you have a 000, 001 whatever against the US dollar, and so it’s such a small number, do you think they will restructure that into a more meaningful number for people going forward?
Well, I would hope that they do… Sorry, thing is a vague… Chari would hope that Bitcoin… So I no longer paid to the US dollar in the future, I would like to see Bitcoin be the universal currency rather than denoting in the US dollar, everything is denoted in Bitcoin or whatever the universal crypto will be for the world at that point in time.
Got it, okay, that makes sense. And so the issue right now, you’re saying when there’s this very small number, a Bitcoin, it’s kind of hard to interpret mentally, you’re saying that’s mostly because it’s pegged against the US dollar, but you’re saying that if it’s decentralized and it’s not pegged against any one particular coin, for one particular currency around the world, that it will not no longer have that kind of value.
Right, and this goes back to what I was saying about parallel systems, so right now we have an economic system, the United States based on the US, Europe has an economic system based on the Euro, China and our… If we had another system where a business was able to buy everything I needed Bitcoins and take in Bitcoins or crypto currency of any kind and completely transact in crypto and never have to convert back to fit, that’s where you start breaking away from these government-controlled finances got it. And in for an explanation, what is a fee on currency, so I would be the US dollar, the European Euro, anything like that. It’s just basically what we’re used to using every day in our lives.
Got it. Yeah, I actually just looking stuff as we were talking, it sounds like the reason they call it a currency is that it’s really… The US dollar, the piece of paper that is the 5 Bill is on, is not actually worth 5, just peg to a value, kinda like what you’re talking about, so that makes it a furry and sounds like… Does that time to a… Yeah, exactly. You think about what a US dollar really is, the value of it is backed by the full faith of the US tax or on the full faith in credit, I think of the US tax Baner, but that goes along with our ability to pay taxes, and if you look at the situation we’re in right now with almost 40 million people out of work, the government basically paying everybody and is printing more money or US dollars in order to pay these people, what is the tax base really worth anymore? Without producing things, we don’t have an economic basis for our currency and going out certainly complicated, it’s one those ones where it’s… Right now, people are definitely concerned about the fact that they’re printing money, but I guess the one thing that is somewhat beneficial is that the US is not the only country printing money right now, if you look at the US at Are… You would have thought that with all the the US printed that then would be substantially stronger against the US because of value in the US dollar, but guess what, Canada printed a bunch of money too, so relatively speaking, there’s still similar in value, I don’t know what… As of this recording, but it’s probably like 1-38 cents Canadian in one US or something like that, maybe even higher, but you see things like the Dow Jones rise and fall and tank and come back up pretty quickly, the one with the US currency, it’s still the relative currencies like the cat, are still in the same value, do you see that still happening with Bitcoin and terms on these other coins that are gonna be new current tion?
Well, that’s just it. Everything’s relative right now, like you said, everybody’s printing currency, so we’re all kind of on the same level with a crypto that is not connected to any specific government, that’s not controlled by any government, really, the value should not be paid to any fee on currency, so it should really break out of that mold. But right now, I think we’re in such an early phase of the rip in life, since we’re still finding our way through this a little bit, and people are trying to connect crypto to fit or other markets, when it is a completely Le ocean here. It’s a green field opportunity that as yet to come into it, so we still develop it, right.
So we will learn more as it goes forward, and if it does break away from the FIA currencies, then that changes everything.
Yeah, so to wrap things up here, give us the one or two things that you think are gonna happen going forward at a high level, and then how people can get educated on what you’re doing and learn more about maybe a resource or two that you think is useful.
So I think we are in a situation where life has changed her mentally, there’s no going back to the way life was in 2019, and because of that, everything has changed about the way we are going to live our lives.
And crypto, I think is gonna be a big part of that moving forward in the future, you think about where you put your money. Right, do you wanna put it in gold? Well, I can’t really drive gold around with me in my pocket and I can’t pay for anything… Yeah, it’s been a traditional store of value, but why… If you look at something like a Bitcoin, it’s more portable, it’s more usable, it’s more accessible than golden.
And then if you think about the food currencies, well, then we’ve already discussed out of length, we are not going to go back to offices in the future, we have had the capability to work from home for years…
I was doing 20 years ago as normal applications DBA. I know from a friend’s company who he was on a call with the CEO, they said 70% of their employees are never gonna set foot in an often… Again, at least that’s the prediction at this point in time, and this is a huge, huge company. So we’ve got a huge effect on commercial real estate coming up, our life has changed and we have to accept the fact that we have to live things differently and in a new way going forward, so we have to accept that and move forward and looking it as an opportunity rather than a problem, the problem is cop19 and we need it, a fact, and then it’s changed our lives and we’ve come into an environment that we have been able to support for years, but now Co, it has pushed us into actually doing that and changing our entire business model.
So I think we all have to realize that and accept it and move forward with things the way they are right now, and look at… This is the new reality. As far as crypto currency goes, I consume news on crypto from multiple sources, but some of the easiest for folks to follow originally would be something like a coin desk or point market cap.
Those are some places where you can get some really great information.
I’ve been a fan of epicenter Bitcoins podcast going way back to the beginning when I first got into grip to parent in the 2013-2014 time frame. So those are some great places for anybody to start, and then from there as you redo articles to listen to podcast, you’ll just keep learning more and more, and you’ll find references to more sources from there, and it will just continue to grow. So you have lots of places to look for information, and is there anywhere Bharat people can find you if they want to reach out, kinda learn a little bit or what we were doing on the consulting side and any of the separation here… There’s a lot of stuff that you talked about and you see doing very experienced in these areas, a What’s the best way for somebody to reach you?
Yeah, absolutely, I am on LinkedIn and search Cal under my name on LinkedIn, Brandon Patterson.
I am currently moving my company’s website from the traditional web over to a crypto domain, so it’s going to be jd international it crypto-crypto, and that will be accessible by the end of this month, so it takes a little word to that move to over there. Those are the basic ways to contact me, email address, B-Patterson at JD in T dot com. And that’s basically it.
Awesome, well, hey, I appreciate you coming on the prospect to talking a little bit about your background, the Future of Money and crypto and all these different coins and the direction things are going. It’ll be interesting over the next probably six to 18 months to see how the world develops and how it changes post-COBIT, are we gonna print more money, we gonna start raising taxes, that we’re gonna change the way that people do things and are we gonna transition into this more offline or sort online kind of model, where people are using crypto instead of paying to dollar like the USD, so I appreciate you coming on the show, sharing your wisdom and teaching us about blockchain and Bitcoin in theory and all that, so thank you so much for your welcome. Thank you for have me on the show.
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