Bitcoin is Digital Gold. Let's talk about the mine...

hi everybody this is Charles hoskinson broadcasting live from warm sunny Colorado always warm Always Sunny sometimes Colorado I wanted to make one more video a double header and I think this is one that's really going to piss off the Bitcoin people but that's okay because team Orange from time to time does have a lot of fun with us so you'll hear a lot about Bitcoin being digital gold and actually it may surprise you guys but I I do agree with that I think Bitcoin is not only digital gold but I think that it does have real use and utility but there's one thing I wanted to point out and this is about wrap Bitcoin and it's a small thing but I I thought it was a cool video to make just something that we could briefly talk about so I'm gonna do another Whiteboard video so you get a two for one today and we'll have some fun with it okay so let me go ahead and share the screen all right so Bitcoin came out in 2009 and one of the core Innovations of Bitcoin is that it cost something to make Bitcoins so early on we had critics like Peter Schiff come around and say oh well anybody can just make Bitcoin out of thin air and we're like no you have these Miners and the miners have to invest a huge amount of resources big set of them terawatts of power xobots of power to make a block and then that block basically pays them some Bitcoin reward but if you think about it each Bitcoin each one in circulation if you think of them as atomic units is connected to an energy cost okay so there's a cost of production in this respect and that's variable based upon when it was mined if we thought of them as physical units but with the utxo model they kind of get mixed up and so forth but you could kind of sum it up and you could think about the some total energy cost to make all the Bitcoin now here's a different way of thinking about Bitcoin and this actually the inspiration for this video and I think it's going to really scare some people but it may it may actually be productive let's see okay so you have gold and you have a gold mine now does gold need the gold mine to be valuable after the Gold has been extracted and the goal is in circulation just the knowledge of where it came from its cost of production and these other things is generally speaking where the price comes from also connected to the overall demand of the good now let's say at the thought experiment all the gold mines in the world got shut down there's no more gold extraction would this mean that the price of gold oops would this mean that the price of gold goes to zero well of course not actually the price of gold would probably go up why because we know there's not going to be any more of it and so it's more scarce resource but the utility behind it the demand behind it the economy behind it is still functioning so you have the Bitcoin Network and what the Bitcoin network has done is it has created a chain of proofs for resource consumption from the data within looking at the hash rate and some historical Notions you'll know at any given time the cost to replicate in other words that cost of extraction for those gold mines so what if we were just simply going to shut down Bitcoin tomorrow shut the Network down and what we did is we moved all the Bitcoin off of the Bitcoin Network and basically created wrapped Bitcoin on other block chains okay so you have wrapped e t h BTC wrapped cardano VTC but then the sum of all of the wrapped equals obviously the total Bitcoin in circulation what if we did that now the question is would these wrapped Bitcoin trade at the same dollar value as regular Bitcoin well let's take a look at the experiment so if we go to coin market cap we can go down here it goes oh rap Bitcoin okay that's I believe rapid coins on ethereum nineteen thousand five hundred thirty one dollars nineteen thousand five hundred fifty eight dollars so a slight Bridge risk Arbitrage okay but you could remove that with proof of burn basically there's already 4.