Hi, everyone, I’m Olivia,
head of editorial at Cointelegraph.
And I’m Molly Jane, head of news.
And this is Coffee & Crypto.
So, Molly, what are we
going to talk about today?
I’m going to tell you about some tweets that
our president made.
Okay, I’m going to tell you about what the
EU Central Bank said about Bitcoin.
And then I’m going to tell you about a big
And then we’re going to talk about NASA.
And then we’re going to talk about
the first time that we heard of cryptocurrencies.
And not about taxes.
Our American president, Donald Trump.
Our American president 😀
Our American president tweeted
about cryptocurrencies and Bitcoin.
But luckily, Olivia hasn’t
actually seen the tweets yet.
So we get to see her reaction right now to
what happens when the president of the United
States tweets about cryptocurrency.
“I’m not a fan of Bitcoin and other Cryptocurrencies,
which are not money, and whose value is highly
volatile and based on thin air,”
“Unregulated Crypto Assets,” crypto capital,
C capital, “can facilitate unlawful behavior,
including drug trade and other illegal activity.”
That is such an original thought, thank you.
It’s crazy that before this we thought that
bitcoin was only for good, but now he’s shown
us that it can be used for drugs.
I had no idea it was based on thin air.
I thought it was based on blockchain.
“Similarly, Facebook to me…”
Wait, what, “Facebook Libra’s “virtual currency”
will have little standing or dependability.”
So now he’s hating on Facebook, this is fun.
“If Facebook and other companies want to become
a bank, they must seek a new Banking Charter,”
capitalized, Banking Charter, “and become
subject to all Banking Regulation.”
“Just like other Banks,” also capitalized,
“both National and International.”
Because the tweet goes on the new
tweet, it’s a thread, threading.
“We only have one real currency in the USA,
and it is stronger than ever, both dependable
and reliable, is by far the most dominant
currency anywhere in the World.”
“And will always stay that way.
It is called the United States Dollar!”
This is really mind blowing.
People have reacted online basically the way
that I think that we’re reacting now.
My favorite reaction of all of the ones I’ve
seen is from Gemini Twitter, because they
are tweeting and quoting the Winklevoss twins.
The founders of Gemini, as if they’re saying
these quotations that are like quotations
that should be memorable forever.
So Gemini replies saying “Bitcoin, it’s freedom.
It’s very American.”
And then cites Tyler Winklevoss.
You know, why didn’t Tyler Winklevoss just
Obvious point, which is that like USD is cash
USD or just cash in general, especially dollars
are used for illicit activities for the majority
of illicit activities.
That’s the point.
And if you go back to the old story that Cointelegraph
covered a few months ago, or maybe even last
year, some U.S. high ranking law enforcement
officials said that they want criminals to
keep using Bitcoin, because then they can
trace it on the blockchain.
Can’t trace the dollar
like you can trace bitcoin.
It’s another thing if you’re trying to be
illicit, you should not use bitcoin.
It’s pretty dumb.
Japanese crypto exchange BITPoint suffered
a $32 million hack.
I’m not even surprised anymore.
The reason this hack has its unique quality
is that BITPoint was the exchange that the
Mt. Gox trustee Kobayashi was using to sell
Mt. Gox’s Bitcoin holdings.
I mean, it would have been pretty crazy if,
you know, the Mt. Gox holdings were hacked
But this time it ended up being about $9 million
of the exchanges funds.
And then about…
XRP, bitcoin and other cryptocurrencies.
So the majority of it was customers funds
And this exchange had received a business
improvement order from the Japanese regulator,
so yeah, not surprised.
What happened exactly, I mean is it clear?
Hot wallets were stolen, their cold wallets
were not compromised, apparently.
Hopefully our Japanese team will be able to
get more information.
So we will probably, most likely
do a follow up.
Which you can read on our site.
Which will have more detail than the news
piece, so just wait a little bit for that.
Just a tiny little bit.
My next thing I want to tell you about kind
of connects back to Trump better, but whatever,
which is about the eternal question that everyone
wants to know, that everyone’s constantly
asking themselves before
they fall asleep at night.
And that is, is Bitcoin a currency?
Who doesn’t think that it is?
Thanks for prompting me.
The EU Central Bank.
Oh, that’s kind of big.
Yeah, it’s big.
EU said in a tweet, quoting their chief economist,
“No. Bitcoin is not a currency, it rather is an
asset and it is very volatile.”
So there’s a few things here.
First of all, it was part of a Twitter “ask
me” thing with hashtag #AskECB.
So they say, so the answer on the question,
does ECB have plans to add bitcoin to its reserves?
And they’re like, no, bitcoin is not a currency.
It rather is an asset.
What kind of asset is this they don’t specify.
It’s very volatile.
That seems to be the reason that they’re saying
it’s not a currency.
That’s their explanation.
So you might be wondering, whenever you ask
yourself this important and deep question,
what is a currency in general?
What’s the definition of currency?
I ask myself that every day.
And every day you open Cambridge Dictionary
and you look for currency, their definition,
there’s sort of two ones as money.
It’s the money used in a particular country
And it’s also, you know, how you can say like
something’s a currency.
It’s a state of being commonly known or accepted
or being used in many places.
So Bitcoin kind of fits well.
So you can, you know, exchange for other things.
Yeah, but then there’s a definition of money,
which is a lot of times people say currency,
they sort of overlap it with money and they
Money is, as we all know, has three main properties:
1) medium of exchange, 2) is a unit of account.
So like, does that make sense?
Yeah, it makes perfect sense to me.
Unit of account, like how you can say you
have a certain amount of something.
Yeah, like rocks.
A certain unit,
it’s like in a dollar, in a rock.
How many rocks you have.
Except for rocks like you probably can’t exchange
anything, so they’re probably not money, and
also store of value.
Store of value is the third property of money
or function of money.
And that’s something people debate also like:
is bitcoin a good store of value?
Because today it’s $10,000,
tomorrow it’s $1,000.
It’s not actually true, but you know what
Like it’s the volatility for a lot of people
is the key reason why Bitcoin is not a good
store of value, which is only one of the three
functions of money.
So we have currency and money.
Does Bitcoin fit those three criteria?
In some cases, yes.
This bank doesn’t think so.
Well, it’s not accepted as like, for example, it’s unaccepted as a medium of exchange anywhere you go.
But neither is the dollar.
But in a particular country, for example,
it’s hard to use bitcoin in that definition,
because that’s an old outdated definition.
Bitcoin has no borders.
Bitcoin has no borders.
Why don’t you tell us about the first time
that you heard of Bitcoin?
Because I think you had a problem with that.
Yeah, so I’m trying to remember, I was just
telling you this story, what year it was.
2013, the first time I heard about Bitcoin,
it was 2013.
I was not working for
Cointelegraph by any means.
And my little brother was a freshman in college.
And he, not me, but he got sort of offered
by a friend of his to invest some money in bitcoin.
But the way it was phrased was like, I’m going
to this kid, this freshman student, was like,
I’m going to collect money from all my friends
and buy Bitcoin and trade it.
Or maybe he was just buying and selling, like
maybe he wasn’t being a trader.
But at that point, it costs so little and
it was like so unknown for most people.
So, all his little freshman friends each put
in as much money as they wanted.
My brother put in like $100 or something.
And he made them a bunch of money, he made
them big returns.
And I don’t remember his exact timing and
stuff, and how much bitcoin cost at that moment.
It was probably like since it was a start
of fall 2013.
So you guys look it up.
My mom told him that she’s like: yeah, your
brother’s buying some kind of internet money
and making a bunch of money off of it.
And I was like, I don’t like
the sound of this.
What did he actually get?
Like, is it a currency?
How does it have value?
What is it backed by?
That was asking all the basic questions like
who owns it?
Like what is Internet money?
What does that mean?
I felt like an idiot, I was upset, I was angry.
I had anger, because I was like, how does
it have value?
I felt like Trump.
I understand how Trump feels, because I felt
that in 2013 for a second,
but I just didn’t have as many Twitter followers.
One of the reasons I’m wearing the shirt,
other than that it’s from our merch store
and you can buy it and it’s pretty cool.
The link below for our merch store!
Other than that is because a computer scientist,
who works for NASA, mined Bitcoin on a 52
year old Apollo guidance computer, very old
They made millions.
So no, he didn’t, basically, he said this
is the last part.
He reported that because of the hash power
being very small, he said that it would take
“a billion times the age of the universe to
mine a block”.
If you guys have any topics you think that
we should be discussing in our next issue
– comment below, and we’ll probably respond,
but we’ll definitely read it.
Even if we don’t respond.
We read all the comments.
We read every comment, personally. Everyone.