YouSaid · the spoken record

Bob Burnett

lines on the record: 83
first: 2024-02-21
most recent: 2024-02-21
sittings or episodes: 1
sources: podcast

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“You know, I'm at Twitter boomer underscore BTC. Flick behind me. This is low. I do have a little show of my own called Old Man Yowls where I go on monologue rips of Just ranting about something, so that's on YouTube and Spotify and places like that. But I always enjoy my time with you, President. I'm really happy that we got a chance to do this. Thanks so much for having me.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And I'm sure others will look in similar. There are already derivatives in like, obviously, Bitcoin and hash price and things like that. But the difference with this one, so I think it ultimately will become the most important, is that the need exists on both sides. So hash power derivatives or hash price derivatives, excuse me, there's really not somebody on the other side of it. The other side of it is kind of speculators. So the miners need it, right? There's a need for the miner to say, well, I want to protect my investment. I want to protect my output. But there's not somebody on the other side who had kind of the same dependency. But in the price, in the case of block space, that does there is both a producer and a consumer. And so I believe ultimately that's what drives this to become the single most important derivative product.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“It is It is fantastic. And I'm sitting here. I told you at the start of my story in 2017. Deep, deep, deep in the rabbit hole. It's still learning these things, still having these revelations, hopefully doing something to make it better. I always say for me and my company, I try to live the ethos. I try to do what's best for Bitcoin in the belief that ultimately it will be the best thing for me and my family. And that's why like on this derivative product, I should say too, I am actively working with a company ironically called block spaces out of Tampa to develop a product to do that.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Not to get too deep philosophically or whatever, but you know, I think a lot of times people in the sciences, and I would kind of consider myself on the periphery of that, they go through these phases kind of from a religious standpoint. I'm not here to profess any specific religion, but you kind of go through a period where often people in the mass and the sciences, they lose their faith and then it kind of comes back later in life. The deeper they get, like you start studying. And just kind of as a hobby, I like to study the universe and like physics and things like that. And that's kind of my path is like, well, I became, it should become more spiritual, more belief, and a higher power when I, the more that I saw this stuff. And I'll go back to I believe Bitcoin is divinely inspired. We should not worship it. At least don't take it that way.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So what do I want to do? I want to buy these futures contracts and lock in a future price so that a miner then facilitate a relationship So I think this is an important part of the long term health of the infrastructure. It's probably scary to people. There's even parts of it. I mean, I get a little willies myself, but it's such a dramatic shift from where we are today. But it kind of means, yeah, you know what? A lot of the financial institutions and a lot of the big guys are coming in. And when they come in, they are going to drive these sorts of, well, they have these needs and they're going to drive these kinds of solutions.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah. And so I believe that mining companies will work very hard to moderate some of that. Interestingly, there's a second side of it. If I am BlackRock, if I'm in exchange, if I'm a company like that, I might be doing 100 base layer transactions a day, let's say. Now right now, is that a meaningful part of my P&L statement? No. Not today. But in this future world where fees are maybe 30 times higher on average than they are today or 100 times higher, it becomes a meaningful part of the profitability of my organization.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Fees that kind of are just a little cherry on top that flips, maybe in as soon as five years it flips to where, as I said, we have this variable thing, well, the variable thing is not really tied to the production of Bitcoin. What it's tied to is the production of block space. So that's a whole different paradigm shift, right? What we're producing is not Bitcoin. We're producing block space. As a mining company to keep it simple and we'll put it into today's terms, if I own 1% of the world's hash rate and I also have control of the block template, meaning I pick what transactions go in the block, then I control 1% of the world's transactions. And those transactions are virtual real estate. And I can sell that. You can sell into the future.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Off 30 or 40% of it, and the rest you ride with the wind. And maybe as time goes by, you sell off more and more. The other side of that is there are companies that need corn for whatever they make, right? Whether that's a bakery or somebody feeding cattle or whatever, they have the same thing. They have this variable cost structure. If they don't lock in that price of corn, they have the problem. Block space is the same way. Block space in and of itself is a commodity. Bitcoin mining companies today in today's world, I think if you said, what is the product of a Bitcoin mining company, you would probably say it's Bitcoin. And it goes back to the subsidy. What we produce primarily is the Bitcoin. We get these little tips or”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And so you have you're much more astute and knowledgeable Preston than I am in the financial world. But one thing that I'm pretty confident in is that any commodity that's produced for it to mature and really take off, there's like always a derivatives market, whether it's an agricultural product or a precious metal or whatever. There's a, and part of that on one side is that the producers can lock in some certainty about future demand and future price. So if you're growing corn in Iowa and it's May, you can sell some of your October harvest off. You may not sell all of it. You may sell a part of it, right? Sell a part of that future harvest. And then on the at a fixed price that you know you can be profitable at. And maybe take a sell.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“There's a free first month of membership in your fitness club, right? Well, that ends and you start paying in February. Well, that's where we are in Bitcoin. We're through the introductory period. And then there's a lot of ramifications, though, beyond that too. So as an example, as a miner, when we move from most of our revenue being subsidy to most of it being fees, that means also that our revenue stream moves from something that is fixed to something that is variable.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Typically, because it's part of the reward, right? And they think about, oh, this was to reward the miners through the dark days. I think that was only half of the story, though. And so we're obviously constantly amazed by Satoshi's genius, right? There's too much genius to have been coincidental. And part of that is, well, no, the subsidy was also a subsidy for the users. The subsidy was there to give a period of time in which we could have essentially unlimited access for free to the most secure network in the world that was free. And the reason fees were effectively zero was because of that. It was to incent user adoption. I think that's over. The introductory period is over. This is like in early February right now. Probably in gyms all around the world in January.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Because of this, this is why you can see that this is the path. There are major ramifications of this, clearly, because there is a mindset within the Bitcoin community that is difficult to kind of undo not your keys, not your coin. It's true. But not everybody can have their keys. It's not practical. We can't tell everybody to do it that way. One of the things I've said in the past is that a lot of people look at the subsidy as a subsidy for the miners.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“That's the reality. We can't have our cake and eat it too, right? There's this trade-off. And it's what I went back to like, why did I abandon Ethereum?”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, I think that's one of the things I've had when I've talked about this a few times in the past with people I think have taken it as me being like anti-base layer or anti-maxi or something like that, but I'm just trying to paint the reality of it. And it is what it is. And the company adoption. So if your target and you start taking Bitcoin, how many times per day are you going to want some form of base layer resolution with the ins and outs of your money?”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“But that still, by the way, means the BlackRock or bitwise or Franklin or one of these companies is doing a base layer resolution. Now, it may be batched with some other people buying the same day. But they're doing a lot of those transactions. If we hit a bull run, which I'm fairly confident we're about to be in if we're not already in, then if we see 50 to 100 million Bitcoiners move to 250 million and then to a billion and then to 2 billion. There's no way. Like the base layer just breaks down. I shouldn't say it breaks down. It just gets expensive.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And with maybe we bleed over to 100, 101. And when we do, what do we see? We see the mempool in very short windows go 5x or 10x on the estimate per v byte for a fee. Now, these transactions, like you said, some can be delayed, some can move to L2. If I'm doing a small transaction, I can move it to Lightning. If I'm buying for just long-term holdings, maybe I buy the ETF. So you're right. Those activities can defer it. But there's still 8 billion people. There's still 330 million companies. By the way, when you say you move something to L2 or you move it to the ETF, which I don't know what do you call that? We call that an L2 or an L3, or I don't know what we call that.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“The moment 101 people on apples, the price skyrockets. So it's only a change of six apples in demand that caused the price of apples to skyrocket when 150 people or 200 people per day want apples, but my tree only produces 100 and there's no more apple trees and there's no way to increase the hundred, it gets face meltingly expensive to buy an apple. Now the only caveat is if these people all want to eat one apple a day then it's really, really face melting. If some of them are in a non-urgent situation where they need an apple, then maybe they wait for a day when for some reason the demand dips from 150 a day down to 90. This is my illustration of the way the Bitcoin network has been for the last year. We have been largely sitting at like demand for 95 apples.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And maybe one company about the only one of the 330 million companies, I'm exaggerating, honestly. Effectively, zero companies active and almost effectively zero people. I give this example sometimes about scarcity. I put a lot of thought into scarcity. So one of the things to realize is that the price action on scarcity is nonlinear. Here's the example I came up with. Hopefully it illustrates this. Pretend I have an apple tree. It's the only apple tree in the world. And this apple produces 100 apples per day. At the point when demand for apples is 95 apples per day, they're really cheap. I'm throwing 5 away every day.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“There's almost nothing that we can do to materially change that number. That 200 million transactions has to serve all 8 billion people in the world and the 330 million companies that exist in the world. We for the last year have been at full capacity. If you look at the whole year, I have one of my members on my team, we do a bunch of blockchain analysis stuff and we pull our own data and we scrape it. There was no room for more last year. Year was packed. And that was with, I mean, you tell me what you think, Preston, but let's say maybe 50 to 100 million people max. Active in the net”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“done to increase that efficiency, some of them by user behavior. And we may see today's not the day to debate CTV or Covenants or any of those other things. You did a great job with NVK recently, so you guys covered that really well. But let's say then even the max is 200 million. So that means 200 million transactions.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Well, there's some truth to that latter point, I would say, for sure. But let's look at the math a different way. Each year, there are about 53,000 blocks produced. There's very little that can be done to change that. That won't waver. Each block has a capacity of 4 million weight units. And so for those of you who maybe don't want to think in those terms, because it's a little complex, just think that an average block of 4 million weight units has about 3,000 transactions in it. So if we can translate that, so you have 3,000 transactions per block. And let's even round down and make them math even easier, 50,000 blocks a year. That means 150 million transactions. Now, those aren't the most efficient transactions. There's a lot of inefficiency in them. I think some things can be.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Is two thirds fees and one third subsidy dramatically there's a huge ramifications of that for miners, but human ramifications for everybody, really.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Into why I feel the way I do, but I believe we are on the cusp of a massive change in the fee structure. A lot of people probably don't like hearing this, but I believe fees will be face meltingly high in the next epoch and beyond. I will not be surprised if as we exit the next epoch, the fees and the subsidiary are about the same, meaning roughly three Bitcoin per block in fees and roughly three Bitcoin per block in subsidy. And then going into the next halving, which is only four years away, by the way, we're right there. We're four years away from the subsidy going to 1.56 and fees will still be three. So what does that mean? That means by four to five years from now, minor revenue is two-thirds, if I'm right, minor revenue.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So minors are rewarded with a subsidy and fees. Subsidy is currently six and a quarter Bitcoin. The fees have a historical average of about a third of a Bitcoin. Recently, they've been up in 2023. They were up slightly from that number, but largely unchanged over, interestingly, largely unchanged over the entire history of Bitcoin. So interestingly, as fees have largely remained unchanged, The subsidy has fallen dramatically and you know it will now be what just over 6% of what it was at the beginning. So we've lost 94% of the subsidy. And so it means that fees are climbing as a percentage of minor revenue every halving that's happened. Now we are at a point where we're starting to see fees uptick. And maybe we can dive a little deeper.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Exactly. It's a very dangerous slope if we go down that path. And, you know, I would say that's definitely true in the United States where you and I are pressed in, but I would say to everybody around the world that might be listening.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“That we need to protect if we do not. And we allow that threshold to get crossed so that people can intrude on what we're doing, then everything's lost, right? Amen.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Am running on my computer, N19. Think of an S19 as just a different type of computer. It's just, and so if we are going to allow the government or any entity to infringe on our privacy and our right to use our computing power as we see fit, I think we should all, even if you hate Bitcoin, probably not listening to this if you hate Bitcoin, but even if you are, you should stand with us united that this would be a massive intrusion. Same on energy usage itself. So, you know. Use computing power as you see fit and use energy as you see fit. Those, I believe, are intrinsic rights.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And I think this is really important philosophically. Like, whether even like what we're doing or not, you can hate what we're doing. But what we are doing is proving that an S-19 or a similar piece of equipment does not have to just mine Bitcoin and that it can and it will be used to do other things. Just like I happen to be on a MacBook Pro having this chat with you, that machine could mine Bitcoin today. It could also run an Excel spreadsheet or run this Zoom session. If you're a government entity and you know somebody has an S19, you can't necessarily assume that it is mining Bitcoin. It could be doing something completely unrelated to Bitcoin. And therefore, in my book, it would be a massive invasion of privacy for you to be asking me what application I”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Well, when you become the house, that's really what you're doing you're providing providing liquidity. The house side of the equation. So, what it does is, because I want to get back to the main point. This started from”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yes, thank you for bringing that up, Preston, because a neat thing about our gaming platform is we will allow people to play either side of, you can either be the house or you can be the player.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And they are auditable and verifiable. And if you can say, I can't believe I just rolled three sevens in a row on a craps table. Well, we can prove to you that no, you actually just did or you lost 14 cans of blackjack in a row. We can prove to you no, you really did do that.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Well, I've been looking forward to that. But, you know, what we're going to do is we're going to provide this a free service to people. Like if you just need a random number or something. You have a bet with a friend, we'll be able to provide you and auditably verifiable random number. And how can we do that? Because we use the same technique that Bitcoin uses. Similar block construction, similar hashes, similar, all those sort of things. But we're using the output in a completely different way. We are also working on a gaming platform itself, which will be called chaoshouse.com. And it will be a place where you can go and you can play blackjack or a dice game or flip a coin and gamble on it, but know that the source of the numbers generating that game come from a verifiable.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Because so much of the pharmaceutical research today is to look at, hey, there's a given protein and here's a virus, let's say, and how will this protein potentially dock with this? And what you want to do is you just want to throw a massive number of permutations at this thing. But you want them to be truly random. You want to make sure you're not prejudicing anything in any one way, right? What we've created, and I'm going to very, very shortly, I will tell you this, I'm going to have a website called ChaosEngines.io. The preliminary is going to be beta-ish, so bear with me, folks, but it will come out here shortly. Today's, whatever is February 13th, it'll come out shortly, probably before the end of the month. It will come out.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“As you've said, anything involving cryptography, passwords, signal integrity, protecting a line of communication signals, it's used in financial modeling like Monte Cartel analysis. I have a story for another time about back from my gateway days, but I don't want to detract from this too much. But we did a lot of work in this area working with pharmaceutical companies to help them crunch numbers.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yes, that is correct. And if you are using random numbers, I mean, a simple one is a lottery. Yeah, yeah. You know, lotteries have been corrupted, right? So we can talk more about gaming in a minute, but gaming is probably the single biggest market for this.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Just Google on YouTube or go on YouTube and search for Lavo Lamp, entropy or lava lamp randomness. And there's a company out there that uses the globs of lava lamps to create random numbers. But all of the random number generation that kind of sits out there in the world is still dependent on an interpretation by a third party. It requires confidence. So, what we did is we said, well, we are going to use things that we've learned from Bitcoin, but apply them completely differently and use the machine in a different way, which was we are going to create sources of auditable and verifiable random numbers. And there's a massive market for that, by the way. Massive.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I said, well, why don't I create an entropy engine with this thing instead? And so my first step was to prove that we could do that, that we could write software, that we could run and interact with as an example in S19 and not mine Bitcoin, but just create massive randomness. And by the way, do it in an auditable and verifiable way. That's the other thing about randomness is that there are sources of randomness. So for instance, the greatest sources of randomness today, if you have a need for random number, some of the greatest sources are devices that monitor atmospheric noise and kind of translate atmospheric noise into randomness. There's a group, if you're ever interested.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“The ability to create entropy. So I said, well, I think I'm going to start a new venture. I did found this one myself and funded myself called Chaos, C-A-O-S. And again, for those of you who are maybe not as well versed in scientific stuff, but chaos and entropy and randomness are kind of all the same thing. They're kind of birds of the same feather. And I know you have a background in engineering too. Preston. So, you know, you've heard of chaos theory, and you hear about entropy talked a lot about within the world. Sailors done some great stuff on entropy, right?”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“From an From an energy standpoint You had this relatively small country with very low energy costs. And they got flooded overnight. And so I understand to a certain degree why they did that. They did the simplest thing they could do, which was, well, hell, we'll just tax these guys. And they may view things like property rights and civil rights very differently. I don't profess to understand much about the Kazakhstan constitution. So anyway, we, as I looked at that, what I realized was, well, I don't think these have to be application-specific devices. In fact, What I believe we can do is prove to the world that they can do other things. If you look at an individual machine and certainly at the network as a whole, what we call the Bitcoin mining network or what we call an S17, they really are entropy engines and they have greater than any device ever produced in the history of mankind.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Are legislative, regulatory taxation directives at the industry. So when we call a given device like an S19 in ASIC, we're playing into that hand. We're saying, well, this is an application specific device. Therefore, the energy consumed by that device can easily be subject to whatever this act is trying to impose on it. I find that very dangerous. You might say, well, Bob isn't an application-specific device. So, well, it doesn't have to be. When this started coming about, it actually, my thought process about it actually started Kazakhstan when the China mining ban occurred, a whole bunch of hash rate went to Kazakhstan. Some of you might remember that. Well, it suddenly did put a big strain on their countries. It was a relatively small country, and it did. A strain”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Some might just say, oh, Bob's this old guy who's kind of ornery, but hopefully the reason why I'm a stickler in this one will become a parent here in a second. So it is completely inappropriate to call the machine an application specific device. And I would say actually very dangerous to call the machine an application-specific device. To exemplify that, let's look at some of you might remember Dane. It was digital assets mining act about a year ago, the Biden administration proposed this tax. It was a proposal to tax energy consumption of Bitcoin miners at 30%, got defeated. However, in places like Sweden and Kazakhstan, similar legislation already has been imposed and is in place in those sort of countries. So an attack vector to Bitcoin.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So, well, I mean, ASIC used properly is fine. We just kind of defined what it is, which is an application specific integrated circuit. It's a chip designed to do a specific thing. And that can be all kinds of things like the car you drive, the TV you watch, the laptop that you might be on. They all have ASICs in them, maybe multiple ASICs. And so that basic idea is when you have a circuit and it does something like maybe it's the headlight control of your car. And the dimmers and turn the brights off when a car's coming, all that sort of logic. That could be in an ASIC and probably is in whatever car you're driving. We have taken as an industry to calling the machines like an S19 in ASIC, the machine itself, which includes usually several hundred ASICs chips, but in and of itself is not an ASIC.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“But it's just to say that maybe if I could put it in a different term, you could think of it as very early prototypes are already working, put it that way.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Was actually a brief period in Bitcoin's history where people took because they were migrating from the GPU to the ASIC. And there was a brief period where systems came out based on FPGA. But it's really not economical and it doesn't, you know, but it's a stepping stone. I appreciate you clarifying the term for folks. I'm sorry for dropping. Oh, no.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“We could fail just in capital raising. That alone could cause the problem because at some point we need support from whomever to take us. From this stage to the next stage. And who knows that hopefully people believe in Austin, especially in Bum Su, and will support it.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“That's important. And that, by the way, that speaks to the, you know, we've got Intel folks and Samsung folks and Broadcom folks in very senior positions from those companies. They have the relationships with those organizations that can help make that happen. Yeah, well, it's not a foregone conclusion that we are successful because as you said, there's a lot of stepping stones. A lot of it is financial. We've got functioning FPGAs right now. So that's kind of a process you go through of design and then you take it to an FPGA and we're flushing some stuff out architecturally there. And then it moves toward, okay, well, now you've got to take that logic and work toward the ASIC. But we've been able to prove in concept in actual logic that some of the performance enhancements that we are expecting to get are going to come from that. And, you know, but as you said,”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“There's a win win. If you do it right, this can be massively, massively successful. And you're right, though. There are tremendous number of risks. We're still an early stage company. We, by the way, I'll say this. I can only say so much. We believe we've got major architectural enhancements. We believe we have the relationships with the foundries to be at the very leading edge of”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“You know, you're right. I do want to reiterate again that Bamasuho I mentioned, you know, he's the leader of this one. I'm along for the ride and supporting him and helping him, but he hopefully I'm contributing. But my involvement does speak to how serious I think Filling this gap is like. The need is like that big, and the fact that guys like Adam and Jack are doing similar things, you know, and they're in their way also, I think, speaks volumes about it. Now, it also speaks volumes to, we all believe, we're not doing it. I don't think any of us are doing it purely from a philanthropic or we believe there's a lot of money to be made. Yeah.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Highly likely. That happens. So, in other words, that's not me saying I'm not trying to panic anybody or anything like that, but we have to recognize when these as a community, like almost, I think, a responsibility of the community to continually look at those things and say whether it's goal centralization, asyc centralization, geographic centralization, lack of a derivatives market, maybe we can talk about that in a little bit too. There's all these different things, I think, that could create vulnerabilities to the long-term viability of the ecosystem. And as I know, you've talked about, we'll probably only get one crack at this thing, that doing it and doing it right. And if we don't, the existing system will win. And there are major motivations for those who don't want us to succeed, to try to expose those vulnerabilities. They will continually be tested.”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“You kind of now have a single point of failure. If they build a couple generations of chips, and I'm just speaking hypothetically, there was something wrong or some vulnerability in those chips. We have a huge problem, right? And the whole thing fumbles. We need this. It's very, very important that we get this landscape such that those things can't happen. Because when you look in a short-term window and you say, what's the likelihood of there being that vulnerability even in the equipment that's sitting out in the field today? Pretty low. I can't put a number on it, even I don't know. But let's just say for argument's sake, it's one tenth of 1% is that odds and if that's the case, well, when you apply that to the next year, you go, well, there's a 99.9% chance that nothing happens, right? When you apply it to a thousand year wind,”
2024-02-21 · We Study Billionaires · BTC170: Bitcoin's Hardware Future w/ Bob Burnett (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT