Bitcoin to $250K Once Gold’s MarketCap Is Overtaken? | Samson Mow, CSO at Blockstream

Bitcoin to $250K Once Gold’s MarketCap Is Overtaken? | Samson Mow, CSO at Blockstream


Bitcoin is the alpha and the
omega, the beginning and the end. There’s nothing Bitcoin can’t do
that other projects can do. I think within the next
five years we’ll pass $100K. So there’s no reason why
Bitcoin can’t surpass gold. And if it does surpass gold,
that is about $250K per Bitcoin. There’s no difference between a
private blockchain and a database. Many people in the industry are saying that
Bitcoin was a good start for cryptocurrency. But it will eventually be replaced by
better cryptocurrencies, which will be faster and more scalable, more efficient. What is your response to
these kind of statements? I think that’s ridiculous. Bitcoin is the alpha and the omega,
it’s the beginning and the end. I think some people have taken an
interesting journey and they’ve thought of themselves that something better will replace it. But that’s not really possible because what
Bitcoin is – is censorship resistant money, and no one else can replicate that. Bitcoin was born from, you
know, nothing, a virgin birth. Whereas all these other projects, there’s somebody
behind it, somebody creating it or there’s a company or a foundation somewhere. So they’re all able to
be controlled in some way. If someone wanted to control it,
but nobody can control Bitcoin. So it is never going to be replaceable. And the arguments about faster transactions, well,
that only matters if it’s a payment system. But Bitcoin is not a payment system. The Lightning Network is a payment system. And that’s built on top of Bitcoin. And we have systems like liquid networks sitting on
top of Bitcoin as well that allow for faster transfers. But in general, sidechains can
help to extend Bitcoin too, by adding specialized layers for different purposes. So Bitcoin can ultimately do everything. There’s nothing Bitcoin can’t do
that other projects can do. But for example, Ethereum can be used to
build smart contracts on top of it. That’s something that Bitcoin cannot do. And I don’t think that anybody
can control Ethereum because it’s also… Ethereum is controlled by Vitalik and his
cronies, right, they can roll it back. We saw that with the DAO hack when the
Ethereum was hacked, they just said, OK, we’re rolling it back. And that’s why we have
ETC, which is proof that Ethereum was changed. I mean, you can do smart contract in Ethereum,
but you can also do smart contracts in Bitcoin. It’s just that they’ve
marketed smart contracts more aggressively. So we will think, OK, if Ethereum is
synonymous with smart contracting, but they create a complex system to create this smart contract that
really does one thing, which is create a token. That’s really all Ethereum smart contracts
are for – to create a token. And you could do that on the liquid network. And if you really wanted to create a smart
contract, you can also do that with Bitcoin. But you wouldn’t build the logic of a
smart contract into the Bitcoin smart contract. The Bitcoin smart contract would just do the payout
of, you know, the result of the smart contracts, whereas Ethereum wants to
incorporate that smart contract in. But what that does is it makes them
unscalable because every instance of Ethereum now has to run that smart contract. Everyone has to store that smart contract. So they kind of convert it into a
storage mechanism which shows like they’re hitting their limits, even just processing
Tether transactions, they’re bottlenecked and expensive because they can’t handle it. So there’s no way they can
do what they purported to do. Next year, the second largest cryptocurrency Ethereum
will try to test the transition towards a proof-of-stake system. And also Cardano, which is also quite a
large cryptocurrency, is going to make its own POS system public upgrading it. Still, you said that
proof-of-stake is a joke. So why? Why do you think this big
cryptocurrencies are switching into it, if it’s so unvaluable? Because I think a lot
people don’t understand what proof-of-stake is. Proof-of-stake is trying to derive security just
by software in and of itself, whereas proof-of-work consumes energy to
derive the security. So if you take the example I gave, you have a
pot of water and in the water you put a chunk of gold and you boil the water. That’s proof-of-work. So the water is boiling so you
can’t put your hand in to fish out the gold. That is the security. And when these proof-of-work coins like Ethereum
say they’re going to transition to proof-of-stake, it means they want to stop boiling
the water and build something to put over the pot, to collect the steam and then
use that steam to reheat the water to generate security again. But as you know, the law
of thermodynamics wouldn’t allow that, right. You’ll have heat dissipation. It doesn’t work. But all these proof-of-stake
systems are just very, very complex systems that hide the tradeoffs under
a layer of complexity. And it doesn’t work ultimately. What is your Bitcoin outlook for
2020 in terms of price? It’s hard to say. I’ve made
some price predictions in the past. I didn’t always hit it, but I hit like
the $1,000 mark, I hit the $3,000 mark, I predicted $6,000. But next year, it’s hard to say. I think within the next five years we’ll
pass $100K, but Bitcoin is very volatile. There is not a lot of market depth to it. It’s still very small. It’s still billions of dollars. So people can move the market just
with a couple of hundred million dollars. So people like to analyze
it, do technical analysis. But the reality is, Bitcoin is too small
for that and it’s hard to predict accurately what’s going to happen. But I think on a
longer timeframe, five years we’ll pass $100K , we’ll pass $250K and eventually
it’ll get to millions. Because if you look at it, what
Bitcoin is going after is gold. We’re looking to replace that 7.5 or 8 trillion dollar market cap of gold
with a superior asset, which is Bitcoin, right? It’s digital gold. You have the same
scarcity or even more scarcity than gold. Ease of transfer, ease
of improved privacy, storage. You don’t have demurrage, so it’s like
better than gold in every dimension. So there’s no reason why
Bitcoin can’t surpass gold. And if it does surpass gold,
that is about $250K per bitcoin. Can you see a future
where blockchain exists without cryptocurrencies? Does blockchain really need
cryptocurrency to exist? First, blockchain needs
cryptocurrency to exist. Can you imagine a future where that is
just the blockchain technology as the technology used by companies, by industries
like IBM without cryptocurrency? It’s not really, like a lot
of people conflate blockchain with Bitcoin. And when they say blockchain, they mean like
all the elements of Bitcoin that make Bitcoin – Bitcoin, right. The
immutability, the decentralization, the censorship resistance, the security. And they just imbue the word
blockchain with all of those characteristics. But I can load up elements
and create my own blockchain. These elements is Blockstream’s
blockchain building platform, right. I can run that in my house. Is it secure? No. Is it immutable? No. So you can as a company make a
blockchain, but it doesn’t mean it has those characteristics. Blockchain is just a basis? Yeah, I can call a bicycle a tank, but
it’s not going to repel around from a bazooka, right. It’s going to get blown up,
whereas a tank will defend that . But there are a lot of companies that
are using blockchain technology without the need of cryptocurrency on top of it. Then they could use a database. There is no difference between a
private blockchain and a database. So you don’t believe in private blockchain? I don’t believe in that at all. It doesn’t make any sense. Why would you make something like that and spend
the effort where you could just use a database? Because if it’s not open and you
can’t access my blockchain, then it may as well be a database. But as far as I
know, blockchain allows easier access to data than a database. Not really. That’s conflating blockchain with a standard. So if everyone was using a blockchain, let’s say,
a fork of Bitcoin, then you would have a certain level of interoperability or
everyone’s data is on a blockchain. Like I don’t know, say they’re anchoring data
onto the Bitcoin blockchain, then yes, or the assets are issued on Bitcoin
sidechain, then you have that interoperability. But a blockchain in and of itself does
not guarantee ease of movement between different asset types. Recently, China has announced
that its intention to embrace blockchain technology. Don’t you see China embracing blockchain
technology as a threat to this original vision of blockchain being used in
a decentralized matter for a democratic system? Right, so I mean, using blockchain
in certain ways, like for democratic systems or whatever, is still not the point. The point was Bitcoin, which
is censorship resistant money. So the China use case does
not really compete with Bitcoin. It might compete with other centralized chains
out there or even altcoins that are centralized under some development
team or some foundation. But that’s a different ballgame than Bitcoin. So it might threaten Ripple or it might
threaten Libra, but it doesn’t threaten Bitcoin because it is not going to be decentralized. It is not going to be permissionless. Thank you. Happy to be here. Thanks, thanks so much.

68 comments

  1. Key moments:
    0:30 — Will Bitcoin ever be replaced by something better?
    3:26 — Why are cryptocurrencies switching to proof-of-stake?
    4:56 — What is your Bitcoin price prediction for 2020?
    6:23 — Can you see a future where blockchain exists without cryptocurrencies?
    7:55 — Do you believe in private blockchains?
    8:54 — Is Chinese support of blockchain a threat to cryptocurrencies?

  2. Don't listen that prediction is poison not true. Bitcoin side wise to 7k and later on going 6k to 5k. Biggest scam, liar prediction, manipulation , controlling. Dramatic all the time. Fall prediction.

  3. Thank you Samson – finally someone advocating BTC from blockchain's only usecase that sooo many people tend to miss or forget: Censorship resistance.

  4. If you're really interested in a faster Bitcoin without mining for consensus then you need to be interviewing a different genius of a guy.

  5. Although I love BTC this guy is just talking BS. It is bloody written in the white paper title “BTC is a payment system”! BTC is not going to replace gold, it’s just a new asset class and it will require new money to make it more valuable.

  6. Christine Lagarde , in her first speech as head of European Union, says the world will move to digital currency and she states “ it will not be Bitcoin “

  7. I think he is unaware about Bitcoin though. Bitcoin will remain a standard but not going to be widely used. This guy needs to educate himself before doing any sort of public interactions.

  8. You're false about Bitcoin being dominant because of failed LN concept. However, I agree with him about Ethereum. Vitalik and his team did a premined fraud. Period.

  9. What?! A database is indexed for highspeed data lookup. A blockchain is not, it's like searching through a non-indexed file system (it is magnitudes slower than a database). These beliefs happen when non-DBAs and non-programmers become journalists pretending they know what they are talking about. Developers laugh at blockchain, other than an immutable record of ownership, and preventing double spend in fintech, there is really no other use for blockchain, certainly it has no use as a database! The amateurs in this space are driving me nuts!

  10. Cointelegraph will write what ever you pay them to write. I know this for fact from personal experience with the whores that write cointelegraph articles

  11. Samson is too dismissive. He acts like he knows better than everyone. Bitcoiners will call it confidence. To me it seems like arrogance and hubris. I think he and Bitcoin are headed for a wake up call.

  12. "Censorship resistent money" may be not well accepted by the censors. Would it not? Thus "they" would do anything if not to destroy it, which they are not be able to, but to "tame" it, as they are actually doing it by futures and Bakkt. The price of the thousand of years scarce best store of wealth so far, namely gold, is around 1.5k, and it has an huge market cap. Why would not bitcoin be capped at a similar low price? It may never reach new high. Perhaps ………

  13. 🧡💛💚💙 Everyone in the comment is Long some sort of shitcoin you can tell. Bitcoin is the big daddy. Ethereum is a transexual, but you'd still pump and dump her.

    The others are just diarrhea. Except makr, grin, monero, cardano, maybe XRP due to dumb ass Banker Moonboys, also maybe Ren, Decred, Enigma, BnB coin, also other poop is smelly 🧡💛💚💙

  14. Only old fashioned materialists think that gold is better than bitcoin. When they die out, new generations will have no doubt.

  15. Can't wait until 99% of the market is wiped out. Who buys the s%+t coins that have no use. Brad from Ripple is correct. People should invest in only the top 1% this would increase price.

  16. If it surpasses Gold it would be over $333k per BTC. Gold has around a $7 trillion dollar market cap divided by 21 million BTC = 333k.

  17. all i got from this was that he is a bitcoin fanboy everything else is shit wow waste of time yes butcoin will pump but dont discard newer teçh so quickly

  18. Litecoin can take Bitcoin's place. Digibyte can replace it. There are no foundations controlling them. But Bitcoin has a big problem: the Fed will use the CME Bitcoin futures contract to cap its price. Anyone who thinks the Fed will allow Bitcoin to take off for the moon unimpeded is smoking dope. The Fed manipulates all markets and it hates any competition with it fiat money that it creates by the trillion at the click of a mouse.

  19. XRP is censorship resistant, secure, infinitely faster and scalable PLUS transaction fees are next to nothing. Digibyte is another solid one that has all those qualities but yet the Bitcoin maxis will scream shitcoin, banker coin this and that. These people really do have a cult like attitude to Bitcoin when they flat out ignore or talk shit about other projects they know NOTHING about. P.s I both like and own Bitcoin I'm just growing tired of the Bitcoin maxis and the occasional arrogant nonsense they spit out.

  20. SAMSON MOW – " BITCOIN IS NOT A PAYMENT SYSTEM"

    First sentence of the white paper. A purely peer-to-peer version of electronic cash would allow online
    payments to be sent directly from one party to another without going through a
    financial institution.

  21. I cant understand why people hate on Bitcoin. All coins are pegged to Bitcoins price. If Bitcoin drops so do the shitcoins.

  22. yeah Avarage Joe! keep giving your paycheck to me.!! now we are going into massive bear market like GOLD has 20 years of pain after 1980.. all historical trends are broken good luck hodlers.

  23. This Bitcoin maximalism stuff is insanely absurd. There will be several decentralized ledgers that will open up entirely new DLT use cases that Bitcoin cannot be used for. We're still incredibly early in cryptographic technological development, and to assume that there's no need for any of the other projects that have accrued a massive amount of talented developer mind share is shortsighted.

  24. I believe that you are alright. Bitcoin will be the the world economy. And nobody will put it down. From Brazil.

  25. This guy is so ignorant that it is crazy. 1# Nokia people would also have said was Alfa omega…hahaha. Like so many others! 2# The developers who update/change the bitcoin code…they can be bought/infiltrated/killed/forced/hacked by like NSA and then you can say good bye to bitcoin. 3# dash is a pretty good better alternative…a DAO…the coin owners will control it 100% in the future. beat that mr bitcoin maximalist. 4# Bitcoin is not resistant to anything lol. Again it can be forced into and 51% attack. And manipulated from 20k to 100 usd if the right countries wanted to + shut down the miners and jail them and so on. Anything is possible. This guy is blind.

  26. This guy is likely the dumbest bitcoin maximalist I have seen in my life. So much bullshit he makes up lol. Like 95% is wrong.

  27. 1 example: He claims TA dont worth on btc because the market is too small…how come the pro traders get rich on TA'ing btc – and alt coins even! He is making so much shit up its crazy!!

  28. Hi Cointelegraph, I'm currently taking Billy Thompson bitcoin trading course, learning a ton, and loving it, thanks for the recommendation. Billy Thompson bitcoin trading signals helped me increase my portfolio from 50,000USD to 120,000USD in three weeks despite the market condition, I'm really impressed and I'm going to stick with cryptocurrency. thanks so much . Fantastic analysis always.

  29. ok… got enough… he just said BTC was created from nothing.. virgin birth.. not like the other coins somebody created and they can control them if they wish to… he thinks that GOD droppped BTC on us.

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