Joshua Henslee dives deep into BTC’s ironic flip-flop with the Fed in the Messy Times
Bitcoin influencer Joshua Henslee joined the Messy Times podcast to talk about Bitcoin SV (BSV), the state of the economy, what will happen to digital currency prices, and more.
Henslee explains how BSV is different from traditional “Bitcoin”
Henslee begins by explaining how BSV differs from what everyone thinks of as Bitcoin. He says it’s an implementation of the original bitcoin protocol which was released in 2009. It reminds us that the original had no arbitrary block size limit, had smart contract functionalityand while there are minor (insignificant) differences, it’s as close as it gets.
As a result, BSV scales almost without limit and fees have been reduced to fractions of a penny. This allows people to build apps and transact on the blockchain.
What apps are being built on BSV right now?
Henslee talks a bit about mainstream apps like social media, games, and game apps currently dominant on BSV. He explains the instant payments and microtransactions generated by these apps, introducing him to the concept of ranking instant payments as seen in the arcade of haste.
Christopher Messina finds the concept interesting and wonders if a larger user base would affect people’s behavior. He rightly notes that it’s pretty easy to rank in the leaderboards when there are a few hundred players, but wonders what would happen when 80,000 people were vying for the top 10 spots.
Financial inclusiveness and the decentralized revolution
Messina believes central bank mistakes are getting so bad that there is almost a call for a “decentralized revolution.” He asks for Henslee’s opinion on this, given that he is closer to the digital currency side.
Henslee explains that BTC was originally like this but evolved in the opposite direction. Some developers are actively calling for financial exclusion, claiming that Bitcoin is not for people who earn less than $2 a day. It goes against what Satoshi Nakamoto explained how Bitcoin was designed to facilitate occasional small transactions. That revolutionary spirit has disappeared from BTC, says Henslee, and they actively encourage Wall Street and central banks to pump their bags and make them richer.
On central banks and the lack of utility in the digital currency space
Messina gives a brief history of the Federal Reserve and how the major banks set it up to intervene when things went wrong in the economy. He notes that inflation is built into this system and believes it to be theft.
Henslee sees a future with “parallel systemsin which a large number of people reject central bank digital currencies. He credits the rise of Bitcoin for waking people up to the fact that these CBDCs aren’t all good and could be actively harmful to good. Henslee also notes that a scalable blockchain will be needed to run such a system, but believes it will be years before it is implemented.
Messina points out that there are already many checks in the existing system. For example, it says the Internal Revenue Service (IRS) can take money out of your account if you don’t pay taxes and companies like PayPal prohibit you from buying certain items, such as ammunition, which are perfectly legal.
Henslee talks about the current economic situation and how Bitcoin never existed in an environment of sustained high interest rates. It is curious what will happen to most altcoins and BTC that have no utility other than speculation. He thinks now may be the time for utility parts like BSV to shine, as they are still useful even when the price drops.
“Nobody really cares about these assets. They care how much fiat they are worth,” says Henslee.
A general overview of the current financial downturn and systemic risk
Henslee believes that the current situation, with soaring bond yields and a massive sell-off in risky assets, will hit digital currencies harder than anything else due to the lack of usefulness of most coins.
Messina notes that in general, markets are completely dislocated from reality thanks to government intervention without rhyme or reason. According to Henslee, the real capitulation has yet to happen because US markets are still expecting the Fed to pivot like the Bank of England recently did.
Looking back to March 2020, Henslee notes that a flood of money in the form of stimulus checks and central bank interventions drove prices to all-time highs. Otherwise, useless coins like BTC have benefited as their valuations have risen above all-time highs. However, Henslee sees the potential for deflation as people retreat to cash and deleverage as rates rise.
According to Messinas, all problems come down to government interference and market intervention. He sees something like BSV as a solution here because he is chosen (or not) by the market, and his monetary policy cannot be randomly changed by whoever is in power. Henslee agrees, adding that bitcoin will destroy companies like PayPal that have overshot their mark.
Watch: Presentation of the BSV Global Blockchain Convention, BSV Blockchain: A World of Good
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