My $14,000 got DUPLICATED in the traditional financial system. That would NEVER happen with Bitcoin!

00:01 hey everyone the $14,000 refund that I 00:05 got a week or two back got duplicated in 00:08 the traditional financial system which I 00:10 thought was just a a literal ridiculous 00:13 joke and I wanted to tell you the story 00:15 to understand how groundbreaking Bitcoin 00:19 is because that would never happen in 00:21 Bitcoin and just how sort of antiquated 00:23 and ridiculous riding around in the 00:26 horse and buggy of the traditional 00:28 financial system is okay so here's what 00:30 happened i had made a loan a year or two 00:32 back on something for $14,000 at some 00:35 point I was going to get that money back 00:36 i didn't know when suddenly boom out of 00:38 the blue it shows up and so I tell the 00:41 person who calls me and said the check 00:43 came in to go deposit it and without 00:45 thinking I told them to deposit it at 00:47 Trustmark because I thought it doesn't 00:49 matter what bank it is in i'm going to 00:50 suck it right out of that account and 00:52 buy Bitcoin with it immediately well I 00:54 had forgotten that Trustmark about a 00:56 year ago had disabled my ability to link 01:00 uh cryptocurrency 01:02 platforms using the automatic Plaid 01:04 integration so all of the mobile apps 01:07 and uh consumer financial websites and 01:09 all of that all use plaid pl aid and 01:12 that is the integration they use to the 01:14 traditional financial system to let you 01:16 you move money back and forth but I 01:18 forgot that Trustmark had disabled the 01:20 Plaid integration for reasons I don't 01:22 know and when I call their helpline they 01:24 can't tell me and they say it should 01:26 work and it doesn't and all this sort of 01:27 stuff anyway I did not think about that 01:29 so I told the person who called me to 01:31 deposit the check in Trustmark and I 01:34 would just pull it out of that account 01:36 without I had forgotten that I couldn't 01:38 so anyway the money goes into Trustark 01:40 so as soon as I try to pull it into uh 01:43 to buy Bitcoin I am reminded that the 01:47 Plaid integration doesn't work and 01:49 therefore the money is stuck so I think 01:51 well the logical thing to do is to move 01:53 that money over to my Wells Fargo 01:55 account which definitely works just fine 01:57 with Plaid that's how I do most of my 01:60 buying or in rare occasious occasion 02:02 selling if I need to make a big purchase 02:04 of Bitcoin with my Wells Fargo account 02:06 so I go in the Wells Fargo account and I 02:08 link it to my Trust Mark account which 02:11 works fine it looks like it's going to 02:12 work okay so then I I tell it to pull 02:15 $14,000 from my Trust Mark account into 02:18 my Wells Fargo account it says it will i 02:21 complete it and then it says "Hey it 02:24 looks like it will will be successful 02:26 your money will arrive in 4 days because 02:30 this was the Friday before uh before 02:33 Memorial Day so if I you initiate it on 02:35 a Friday it doesn't arrive on Saturday 02:38 or Sunday or Monday you got to wait till 02:41 Tuesday which that's the first most 02:43 ridiculous thing about the traditional 02:44 financial system is how slow it moves so 02:46 I want to move money between two banks 02:49 that I control that I own that have the 02:52 exact same name on the account and 02:54 literally it takes 4 days to move money 02:56 so as soon as it told me it was going to 02:58 take 4 days I decided I was not willing 03:01 to wait 4 days and so I was like "Okay 03:04 here's what I'm going to do um I don't 03:06 know how long it's going to take but I 03:08 wonder if I can link River uh because 03:11 River allows you to link to a bank 03:13 account with just the uh the routing 03:16 number and the account number so I'll do 03:18 that i'll link River instead of Coinbase 03:21 Advanced which is what I was planning to 03:22 use i will link River to Coin uh to my 03:26 Trust Mark account and I will suck the 03:28 money out of my Trust Mark account that 03:29 way uh because I can't uh I can't suck 03:32 it to Coinbase because Coinbase does not 03:34 allow you to link an account with the 03:37 routing number and uh account number you 03:39 have to actually log into the account 03:41 from the interface you can't just link 03:42 it by routing number and uh account 03:45 number so I linked River and I bought 03:48 $14,000 of Bitcoin on River and it went 03:51 through and the the Bitcoin showed up in 03:53 my account and all was good now at this 03:55 point my $14,000 has been duplicated 03:59 because Wells Fargo shows that I have an 04:02 extra $14,000 in that account that it 04:05 says will you know be available to me in 04:08 4 days but it showed up in the account 04:10 right away as available balance like I 04:12 can use it i can write checks i could 04:15 have bought Bitcoin with it a second 04:16 time anyway um so Wells Fargo right 04:19 after I initiated the transfer showed up 04:22 that the $14,000 was available but over 04:24 here on River they show that the same 04:27 $14,000 is also available to buy Bitcoin 04:30 which I did immediately okay so the 04:33 question is who has the 04:36 $14,000 either Trustmart gave it to 04:39 River for the for the Bitcoin that I 04:41 bought or Trustark gave it to Wells 04:44 Fargo for the transfer that I initiated 04:47 now I went 5 days not knowing which was 04:50 which um I did not know if I was going 04:53 to get a message from River saying "Hey 04:55 your uh transfer actually failed and 04:58 we're reversing the transaction." Um 05:01 which I thought was unlikely because I 05:02 had already bought Bitcoin with it um 05:04 although most cryptocurrency platforms 05:06 do not allow you to move the Bitcoin off 05:08 of them immediately for that reason they 05:11 have to get final confirmation from your 05:13 bank that the transfer actually settled 05:16 and settlement in the traditional 05:18 financial system takes anywhere from 05:19 days to weeks or even months uh so for a 05:22 transaction like that it would typically 05:23 be days so River is not going to let me 05:26 move that Bitcoin off of their platform 05:29 until they get final confirmation that 05:32 the transaction settled with Trustmark 05:34 which is intended to catch things like 05:35 this where it's duplicated in multiple 05:38 places but the fact that it even can be 05:41 duplicated in multiple places shows you 05:43 how ridiculous the traditional financial 05:45 system is that they can't even that it 05:47 takes them five days to figure out where 05:50 my money is and that in that 5 days I 05:54 could have went and bought two different 05:55 things with the exact same money which 05:57 is called a double spend and I'll walk 05:60 you through how Bitcoin prevents that um 06:03 okay so so I wasn't sure which of those 06:05 was going to uh fail i thought because I 06:07 had initiated the transfer on Wells 06:09 Fargo first that Wells Fargo should have 06:12 gotten to the money first and therefore 06:15 River should have come back and said 06:16 "Hey it failed." But actually 5 days 06:18 later the reverse happened the 06:20 transaction on River went through even 06:23 though it was initiated second and I got 06:26 a notice from Wells Fargo saying "Hey 06:28 your $14,000 transfer actually failed 06:31 and we have you know we have updated 06:34 your account balance to no longer 06:35 reflect that $14,000." Now in that time 06:38 I actually thought about because Wells 06:40 Fargo is linked to Coinbase I thought 06:43 about buying $14,000 a second time with 06:46 the exact same money just to see what 06:48 was what would happen i knew it would 06:50 get reversed somehow either it would get 06:52 reversed on Coinbase or reversed on 06:54 River but I wasn't sure if that was like 06:56 you know against the terms of service or 06:58 somehow illegal and I didn't want to get 07:00 in trouble so but I thought about doing 07:03 it i thought you know what it would be 07:04 fun to actually buy Bitcoin with the 07:07 exact same $14,000 twice and then just 07:10 see what happens and try to move both of 07:13 those $14,000 transactions into cold 07:16 storage uh where it can't be reversed 07:18 because once it's moved to Bitkey uh 07:20 it's not a reversible transaction now 07:23 for that reason I am certain that 07:25 neither Coinbase or River I'm certain 07:28 that both of them would not have allowed 07:30 me to remove it from their platform 07:32 until they got final confirmation from 07:34 Trustmark that the money had indeed 07:36 transferred so it's not like I had a 07:38 real shot at duplicating the transaction 07:40 but I was I thought about trying to you 07:42 know see how far I could go with it and 07:45 just and just see what happens like what 07:47 happens if you suck the same money out 07:48 of the you know one account two 07:50 different ways buy Bitcoin with it and 07:52 try to you know download it to your Bit 07:54 Key off of both platforms separately uh 07:57 I'm sure it would not have let me 07:59 because you know the the traditional 08:01 banking system has checks in that it may 08:03 take 5 days but they eventually will get 08:04 around to reversing it um but I was just 08:06 curious what would happen okay so um so 08:10 ultimately I got the notice from Wells 08:11 Fargo saying "Hey the the transaction 08:13 failed were adjusting your account 08:15 balance and because I had not actually 08:17 done anything with that money in my 08:19 Wells Fargo account uh obviously there 08:21 was no harm done it was just my Wells 08:22 Fargo account showed a artificially high 08:25 $14,000 extra balance in it for 5 days 08:29 now I keep my bank account's balances 08:31 extremely low basically just high enough 08:33 so that I don't bounce a check if I have 08:35 to write a physical paper check to a 08:37 babysitter or something like that if I 08:39 have a babysitter or something that does 08:41 not take Bitcoin um but I keep my bank 08:43 account balances low uh because I don't 08:45 want to have fiat currency i want to own 08:48 as much Bitcoin as possible not pieces 08:50 of paper that the government prints out 08:52 of thin air uh so anyway so that is the 08:54 story of the duplicated $14,000 now what 08:57 does Bitcoin do in the Bitcoin ecosystem 09:00 the Bitcoin monetary system the system 09:02 with Bitcoin is money what does it do in 09:04 that situation well it's called a double 09:07 spend and the entire genius of the 09:10 invention of Bitcoin was the ability to 09:13 solve that problem in a decentralized 09:15 way because in this case you have to go 09:17 to a central authority like the Federal 09:20 Reserve which is the US central bank at 09:22 some point and say "Okay who actually 09:23 owns what where is the money?" Or you 09:26 have to go to Trustmark and say "Okay 09:28 Trust Mark who actually did you give the 09:30 money to?" And you know both of these 09:32 people are showing that you gave it to 09:33 them but who actually got it because 09:36 they're both showing that they both 09:38 received it so anyway um so in a 09:41 decentralized system with no single 09:43 entity in control the question is how do 09:44 you do that and that was solved with the 09:46 blockchain the blockchain is the 09:50 immutable 100% certain you know absolute 09:54 record of truth of every Bitcoin 09:56 transaction that has ever happened in 09:58 all of history and the entire chain is 10:01 audited and secured by the Bitcoin 10:03 miners with a new block created every 10 10:06 minutes and in that new block it 10:09 validates secures and audits every prior 10:11 block and then stamps on top of it a set 10:15 of new transactions that are effectively 10:17 set in stone so um if you think about it 10:21 uh it's like cement drying right so when 10:24 you pour fresh cement you can sort of 10:26 draw your initials in it for a few 10:27 minutes or whatever but if you got some 10:29 10-minute quick drying cement every 10 10:31 minutes that cement is going to dry 10:33 absolutely irrevocably or irreversibly 10:35 hard and you're going to know the 10:37 absolute record of truth so uh in the 10:40 Bitcoin blockchain with the uh you know 10:43 the invention of the Bitcoin blockchain 10:45 it solved the double spin problem 10:47 because the Bitcoin blockchain only ever 10:49 has one record of who owns what now 10:53 technically it's slightly more 10:54 complicated than that i will not go into 10:56 the you know every finer technical 10:58 nuance just for the sake of simplicity 11:00 of this video but the uh the the genius 11:03 of it in simplified terms is that 11:04 there's only one record of truth it is 11:06 the Bitcoin blockchain and the Bitcoin 11:08 blockchain does not lie so as a result 11:10 of that I know with absolute certainty 11:14 who owns what Bitcoin if I transfer 11:17 Bitcoin to two different people the same 11:19 Bitcoin to two different people the 11:20 blockchain is only going to show one of 11:22 those people and it's going to be 11:24 whoever I transferred it to first so you 11:27 don't have these situations where for 5 11:30 days two different recipients think that 11:32 they both got $14,000 and nobody knows 11:35 for sure and I could have for example I 11:39 could have written a $14,000 check to 11:40 buy a used car and I think it would have 11:43 cleared or at least they you know the 11:45 Wells Fargo would have said "Yeah the I 11:47 mean the money is here." Um so I could 11:49 have bought a used car i could have 11:50 bought two different used cars with the 11:52 same 11:53 $14,000 and at some point somebody's 11:56 going to end up shorted because they 11:58 don't actually have the money trust Mark 11:59 actually didn't give the money to uh 12:02 Wells Fargo and in this case River 12:05 Financial uh River which is a 12:07 cryptocurrency exchange but um but again 12:10 the way the traditional financial system 12:12 is set up the delay in settlement the 12:15 delay of at knowing with absolute 12:17 certainty where the money is creates 12:19 these weird and awkward abilities to 12:21 double spend now again they have lots of 12:23 checks and balances and that's why when 12:25 you deposit a check at a bank they 12:27 typically put like a 7-day hold on it 12:29 and that's because they're trying to 12:30 wait to make sure you didn't deposit an 12:32 identical check at a different bank for 12:34 the same money so you know that is why 12:39 they do what they do um but with the 12:41 Bitcoin blockchain it avoids all of that 12:43 you don't have to have all of these 12:44 ridiculous fiveday you know settlement 12:47 because the Bitcoin blockchain only has 12:48 one record of truth and that was the 12:50 genius the genius well there was a bunch 12:52 of genius uh sort of developments with 12:55 Bitcoin one of them was decentralized 12:57 money the absolute certainty that there 12:59 will only be 21 million even with no 13:01 single entity or single country or 13:03 single anything in charge uh the way the 13:06 Bitcoin blockchain works uh and the way 13:08 they the way the Bitcoin nodes and the 13:10 Bitcoin miners work to absolute 13:12 guarantee with absolute certainty that 13:13 there will only be 21 million Bitcoin 13:16 was probably the biggest genius 13:18 invention of Bitcoin second to that was 13:20 the ability to have an absolute record 13:23 of truth with the blockchain on who owns 13:26 what and avoid which avoids double spins 13:30 the uh efforts by people to spend the 13:32 same money in two different places which 13:34 again is a very hard problem to solve 13:36 because in the case of uh electronic 13:39 currency again if I'm trying to spend 13:41 money in Thailand and I'm trying to 13:44 spend money in the United States if the 13:46 money is electronic then it's really 13:48 hard to figure out wait which one 13:50 happened first am I spending the same 13:52 money in two different places hoping 13:54 that neither party on each side will 13:56 figure out that the money they got is 13:58 not the real you know is not the real 14:00 money that will clear and again Bitcoin 14:02 solves that with its genius of the 14:05 creation of the Bitcoin blockchain so 14:07 anyway um instead of taking days or 14:10 weeks or months to settle transactions 14:12 Bitcoin can be transferred instantly 14:14 anywhere in the world in seconds and the 14:17 entire blockchain is audited secured and 14:21 stamped in permanent you know cement 14:24 every 10 minutes when a new block is is 14:26 uh is generated which means even for 14:30 billion-dollar transactions the 14:31 recommendation even for moving billions 14:34 of dollars around on so forth let's 14:35 let's assume somebody is buying I don't 14:38 know an oil field something like 14:41 something insanely expensive with a 14:43 transfer between you know sovereign 14:45 nation states and it's ridiculously 14:48 expensive and it only uh that transfer 14:52 can only happen once and it's completely 14:54 irrevocable as in once you surrender 14:57 control of whatever it is that it 14:59 absolutely positively 15:01 uh you know there's no way to get it 15:03 back even in that situation 15:05 the most conservative people would say 15:07 "Okay if you want extra security on the 15:09 Bitcoin blockchain wait for six blocks 15:11 that's the magic number wait for six 15:13 blocks." Even if you're if you're 15:14 settling billions and billions and 15:15 billions of dollars and you just want to 15:17 be super super sure about it wait an 15:19 hour if you want to be you know 15:23 99.99999% sure wait 10 minutes and just 15:26 make sure that the next block has the 15:29 transactions in it and a block can never 15:31 spend the same Bitcoin twice so when you 15:34 transfer bitcoin and you see it uh it 15:36 says confirmed that's the word uh when 15:39 it's it is confirmed that is means it's 15:41 been included in a block by one of the 15:42 miners which gives you almost complete 15:45 virtual certainty uh but if you want to 15:47 wait six confirmations which is 1 hour 15:50 six 10-minute time frames then that is 15:53 effectively the transaction is buried 15:55 under such a um thick layer of 15:59 impenetrable unalterable irreversible 16:02 cement that you can settle transactions 16:05 even in the billions of dollars with 16:07 settlement times of an hour so literally 16:09 you could show up for a multi-billion 16:10 dollar transaction to transfer ownership 16:12 of an oil field you start the 16:14 transaction with Bitcoin and you sit 16:17 down for a cup of coffee and a chat and 16:19 at the end of an hour uh the transaction 16:22 is buried six transactions six 16:25 confirmations deep in the blockchain and 16:27 you can get up and walk away knowing 16:29 that you can you know hand over the keys 16:32 to a multi-billion dollar oil field or 16:34 whatever and there's absolutely no way 16:37 that that is going to get reversed in 16:39 some way so in the traditional financial 16:41 system you can't do that if you try to 16:43 use gold it's going to take a huge 16:45 amount of time and energy to essay the 16:47 gold to make sure it actually is gold 16:49 that there's not actually tungsten 16:50 inside the gold bars so gold is really 16:53 hard to settle us dollars are also 16:54 really hard to settle because again it 16:56 takes days or weeks or in some cases 16:58 months to have absolute certainty that a 17:01 transaction has happened that it's 17:02 irreversible that it hasn't been double 17:04 spent and all of that just like my 17:06 $14,000 so bottom line with all of this 17:09 is every time I interact with the 17:10 traditional financial system even if 17:12 it's trying to just get money out of it 17:14 to buy Bitcoin I run into this stupid 17:17 ridiculousness of how insane it is that 17:21 $14,000 can appear in two places for at 17:24 the same time for five solid days before 17:27 I find out which one of them actually 17:29 got it and it reminds me of the genius 17:31 of Bitcoin where that can never happen 17:34 because due to the due to the uh the 17:37 genius of the blockchain and the 17:39 immutable irrefutable you know uh always 17:42 reconciled ledger of who owns what you 17:45 can have absolute certainty and the 17:47 settlement time of Bitcoin is uh with 17:50 abs you know with settlement for 17:52 anything but the largest transactions 17:53 happening in 10 minutes and even the 17:55 largest transactions of billions or tens 17:57 of billions of dollars taking taking at 17:60 most an hour if you want to make sure 18:02 it's buried at least six blocks deep in 18:04 the blockchain which just gives you 18:06 extra extra extra assurances um anyway 18:09 the whole thing of Bitcoin is genius if 18:12 we lived in a entirely Bitcoin world 18:15 which we will someday then the refund I 18:17 got would have been in the form of 18:19 Bitcoin whatever that 18:21 was.15 Bitcoin or I don't know whatever 18:24 it was uh let's call it 0.15 it's 18:27 whatever $14,000 was when Bitcoin was 18:29 $109,000 so you know 18:33 14109s which is I don't know more than 18:35 10% but less than 15% whatever that is 18:38 uh it would have just been that much 18:40 Bitcoin and I would have gotten the 18:42 refund in the form of Bitcoin it would 18:44 have cleared and settled in 10 minutes 18:47 and there would not have been any of 18:48 this ambiguity as to who owns what and 18:50 where is the money and can I spend it 18:52 and additionally when you transfer 18:54 Bitcoin around on platforms you don't 18:56 have to wait for settlement there's no 18:58 seven nine 10 day waiting period like US 19:01 dollars because if you transfer Bitcoin 19:03 in they know within 10 minutes that you 19:05 absolutely own it because otherwise the 19:09 blockchain would reflect that you don't 19:11 and if you transfer it out they know 19:13 within 10 minutes that you absolutely 19:15 you know no longer have ownership of 19:16 that Bitcoin because it went somewhere 19:19 else and everybody always knows the 19:21 record of truth because everybody in the 19:23 entire world uh that uses Bitcoin is 19:26 looking at the Bitcoin blockchain and 19:28 there's only one of those and all the 19:30 computers on the Bitcoin network which 19:31 includes more than 100,000 nodes all 19:34 synchronized to that one version of 19:36 truth and will reject anything that is 19:39 not that version of truth and that is 19:42 how they're programmed so anyway 19:44 Bitcoin's genius and it's only a matter 19:46 of time it's slowly taking over the 19:49 world obviously there are ups and downs 19:51 on the way up but trajec directionally 19:55 it is always eventually going up because 19:58 Bitcoin is such incredibly superior 20:00 technology to anything else that exists 20:02 in the world uh as money as currency as 20:06 everything else that it's only a matter 20:07 of time before it takes over everything 20:10 so have a great day everyone and I'm 20:11 here for anything you need thanks