Transcript
0:00 So, do you think Do you think Bitcoin is cooked? >> I just think it's capped and then I think eventually it gets hacked and then it goes to zero. >> Breaking news, a critical security flaw has just been discovered leading to millions of hacking attempts as we speak. This is the reason that US markets are plummeting. Massive sell-off in US markets with 1.1 trillion wiped out today, primarily in tech. And even crypto legend CZ warns crypto users specifically be extra careful. Click subscribe to Altcoin Daily for one video per day keeping you informed about crypto. And first thing immediately to understand, do not panic. That's when mistakes are made. When you rush to move assets too quickly, when you're panicking, that's when hackers have the best chance to actually take advantage of you. So, do not panic. Not all of crypto is affected and we'll go over everything specifically, but for example, PancakeSwap does not use PHP.
1:01 That's the vulnerability anywhere in our tech stack. And our platform is not affected. Your funds are safe. What other cryptos are marked safe from this event? Let's watch this explanation then I'll react. >> The entire internet is rushing to update the versions of PHP, whereas the entire cyber criminal underground is trying to figure out how to weaponize this. The world woke up to news that PHP, which is a venerable programming language which that underpins a big chunk of the internet was vulnerable and vulnerable in a critical way to flaws that had been hidden in the code base for more than a decade. These are flaws that were discovered using AI tools. The big worry is that they could now be exploited using some of those same tools. You may have never have heard of PHP, but you encounter it all day, every day. PHP It Wikipedia. It's baked into Drupal. If you go to a if you visit a personal webpage, my personal webpage runs P you know, runs on PHP.
2:06 If you interact with any kind of WordPress site, that's PHP. It is all over the internet. >> And as a crypto holder, here's how this affects you specifically. Because PancakeSwap on the blockchain level, unaffected. No major blockchains are affected at the chain {slash} protocol level. Bitcoin is fine. Ethereum and Ethereum chains are fine. BNB chain is fine. Other major chains, Solana, Base, Sui, they're fine. Where is the actual risk? Well, that's the exposure off-chain at the web layer. So, that may be exchange dashboards, dapp front-ends, so meaning not the base chain, but the front-end, maybe the website. KYC portals, wallet connect pages, any marketing sites. Obviously, marketing is centralized. But, the decentralized, meaning the smart contracts, the cold wallets, and protocol level assets remain untouched by these PHP bugs.
3:05 Again, millions of hacking attempts are occurring, but it's not at the base levels. Send this to a friend so they don't freak out and put their crypto risk. That's important. >> Do you think Bitcoin is cooked? >> So, then why does billionaire Chamath Palihapitiya, who used to love Bitcoin, was the biggest supporter in the early days, why does he say it's getting hacked, it's going to zero? Well, I do just want to take 30 seconds and thank sponsor of this section of today's video, Gigastar, basically the NASDAQ of the creator economy. So, this is fully regulated. It allows individuals to invest in content creators. And if those YouTubers make real-world revenue monthly on their page, you get paid monthly in USDC. It's the first and only SEC registered platform to turn creators' businesses into investable deals. They're already doing real revenue, 3.6 million in creators' YouTube revenue processed by the platform each year, up 364% year-over-year. And basically, creators sell a share of their future ad revenue through channel revenue tokens, which by the way are not cryptos, they are securities. And basically, the opportunity today is to invest in Gigastar the business through WeFunder.
4:24 I saw potential, so I invested. Obviously, this is a startup, so it is high risk. Be sure to read the offering material before investing. Check out the full offering, link down below. And really, Chamath gives a different reason why he thinks Bitcoin's going to zero. And I want to play this in full so you understand everything, but let's give some context on where we are in the crypto market right now, because the institutions disagree with Chamath. Just in, Bitcoin ETFs bought 528 million dollars in Bitcoin yesterday. Weekly net inflows over a billion.
5:00 Institutional buyers ain't leaving. Now again, somebody sold, so it looks like it's still average people selling to institutions, average people selling into fear, institutions buying into fear. We also understand that tokenization is happening. The world's biggest market is coming on chain. Over 440-plus stocks tokenized with more to come. These specifically are all on Ondo. Tokenization, it looks like to me is happening primarily on Ethereum, Solana, some on BNB, and Ondo. And the proof is in the data. This is through exchange partner Binance.
5:39 Massive. Binance's B-stocks cross 1 billion dollars in AUM. It's probably actually even more now. Crypto is growing fast, TradFi is here, and again, it's in the data. Bstocks AUM over $1 billion from a few weeks ago with one-to-one convertibility and zero conversion fee, users have converted over $6 billion between Bstocks and underlying stocks. How this affects you, this brings TradFi, this brings TradFi on the crypto rails. This This gives TradFi crypto wallets. Integrating TradFi into crypto platforms, this is adoption. And also understand is it's not just centralized AI, it's decentralized AI. Decentralized AI is growing. $27 million of hardware is being rented right now on BitTensor Tao. Sorry, correction.
6:37 On just one subnet on Tao, and there's 128 subnets. What are subnets? They're early-stage, primarily AI and robotics companies. Liam now hosts over $30 million worth of hardware, and that's just one subnet out of hundreds. BitTensor Tao is growing. And also pay attention to not what they say, pay attention to what the big money does because Chamath can say what he wants. JP Morgan is much more knowledgeable, has much more capital, and JP Morgan Asset Management expands access to its tokenized money market funds on Solana.
7:16 And now understanding all that, now that we have this context, how could Chamath possibly say that Bitcoin is going to zero? He's going to mention a word, he's going to mention the word fungible right here. He's going to mention the word fungibility. Essentially, what that means is privacy. He's going to say, "Hey, Bitcoin's not private. Why do we want it?" And then at the end, he's going to mention Well, actually, let's watch the full clip and then I want to >> what's your view on crypto given, you know, the meteoric rise of superintelligence here? Are we safe or we not?
7:52 >> I think it's capped. I think that traditional crypto lacks the fungibility to have all forms of buyers. The buying pool is really retail, then institutionals, and then central banks. And retail lacks the fungibility to be owned by central banks. So, it's capped from that perspective. Then it's capped because the there are enough leaks around who owns what that now create security risks. I think France being the best example where I think the French government forced publication of who owned what crypto assets, and you had just a complete flurry of kidnappings and you know, all kinds of really bad things. And then the third is around AI where if you believe that, you know, recursive self-improvement is pointed towards, you know, cryptographic hacks, the most obvious thing to point it to would be to Satoshi's wallet and, you know, to break SHA-256 and just kind of drain the wallet. And then go short and then tell people that you that you did it. So, then you'd you'd make you'd make the money twice.
8:53 All those things I think are realistic reasons why it's capped, and there's an there's an upper bound. And so, it's incumbent on these these efforts to migrate to quantum-secure quantum-resistant cryptographic mechanisms, which as you can see in the Bitcoin community is basically impossible because it's a bunch of people that can't even agree, you know, where to meet, let alone let alone, you know, at what time the meeting starts at. So, it's I think crypto's a bit lost in the woods here.
9:26 >> So, do you think Do you think Bitcoin is cooked? >> I just think it's capped, and then I think eventually it gets hacked, and then it goes to zero. >> Do you own Bitcoin? Are you willing to say? >> through a company a company called Digital Currency Group. So, I had this very long-term investment in Bitcoin. I seeded it to DCG long time ago. They started up a bunch of ETFs. They gave me stock in return. And that was much better for me because then I alleviated myself of the storage risk and the security risk and I had equity.
9:54 >> So, number one, he owns no Bitcoin. The guy that sold too early and he admits it is trying to tell you it's going to go lower, it's going to go lower. Number two, he says that Bitcoin will be destroyed by quantum. That's factually not true. Literally every single coin can be upgraded except for the coins that are lost or or are controlled by Satoshi which are presumed lost. So, 4.6% of the supply could be stolen by quantum and also 7.7 of lost Bitcoin could be stolen by quantum. That equals about 12% of the coins.
10:30 The rest are fine. So, if there was a fear of 12% of the coins could be sold, would that push down the price 100%? No, maybe that would push down the price 20% or 50%. Maybe even 70%. But 70% corrections, even with Bitcoin, they don't happen that much anymore. But they're normal. Even if we have that quantum scare, nothing's dead. And number three, Chamath says the only thing now he has ownership in crypto-related is DCG.
11:01 That's Digital Currency Group and they're the one that launched the Zcash ETF. That's why Chamath was talking about fungibility. Bitcoin doesn't do what Zcash does. It's It's Zcash you do have that. So, he's really just shilling his bags for DCG shares. DCG has also applied for a BitTensor ETF. Hasn't got accepted yet, but when it does, I bet we'll see Chamath talking about decentralized AI much more then. Click the like button if you got value in today's video. Truly does help me grow as a channel.