A Decentralized World: Tim Draper & Yoni Assia Fireside with Zack Seward | LA Blockchain Summit

Hey guys, paid for having a this is great fun to be here on this stage with you. Collabo, I understand this is the first time that I was learning in The Green Room. You guys have like I'm told that you and you only have like a a song that you might want to know debut here. Exclusively, what's with the backstory? It? What's going on? I've written a couple of songs for entrepreneurs. When was the wrist Master 2 to the entrepreneurs of the world? Then what was the Bitcoin hustle? Which is probably more Yanni

Yanni was in the audience started as a spoken word, and we have a lot of fun and Johnny, and I have have met on a couple of occasions but just not on stage. So fun to be on stage with you and fun to do this. I think, I think it would be. This is where is zoom, isn't quite as good as live. And so I think we will save the audience for the Bitcoin Hustle. Flagship crypto muscle. Isn't that correct? The next time we're on live on stage with a live audience, will do a song together. We'll do it. Yeah, what we might? You might even decide.

This is the new, Jimmy song, Joel Lubin bet this is the new price prediction. We're going to see you guys on stage of Music. The next time, your life. Before you, I just wanted to say congratulations on that aside from the best of the best, as one of your colleagues tease, their Tim market right now. Are you interested in when it comes to the, you know, the start of side Investments? Like what? Is really exciting on the Draper go and going home is a critical asset to the Draper and this Central focus on the blockchain and

companies around crypto and decentralization are going to be absolutely critical. Moving forward as the world. We're having a By the way, Cheryl we can hear you. Sure. I hope you there. Any way the world is going through this amazing transformation. Out of the internet opened it all up. We ended up being able to trade across borders, the world start open up and then when Bitcoin came along all sudden we had a, a currency that we could use globally and and one that we

could cut, we could have a saint. Even if a government for instant printed 13 trillion dollars, we could still have a currency that would not dilute and that was the beginning of something that I think is going to be a major change in the world. And I think the world is going to go through an amp for a logical leap. Because we we realized we used to be tribal and that was sort of a way of being secure, we'd say, okay, this is the Border. Don't cross the border in our people safe will now. We realize that the borders are becoming more and more

meaningless and a decentralised world becomes more important. And it will be everything from banking to Insurance, to real estate, the governance that are going to change and become decentralized around the world, and that's going to make us Global completely Global. And so over the next 20 years, we are going to see an amazing globalization. I mean, there's a course, the nationalism that is the response to this and then and the government that are weak or the ones who are trying to cling to the Past, are trying to

become nationally. Trade Wars, or whatever those barriers are, are bad for us. But they're also really just kind of the Roar of the Dying Light as we move to this new new world and it's very exciting. And then, if you break down crypto, it starts with Bitcoin and starts with a currency in the blockchain in the smart contracts. And then it moves to defy, where you start getting all of this, all of the things that are happening with dollars today. Now can start to happen with crypto and then and then from there, I think you moved to

Sedalia, Commerce world, where opennode? And others like it 10 and bring it. So that the merchant and I think the Snows are stars in three stages and what's the stages are done and it's easy to use. And and the world opens up. We are going to have a truly crypto decentralized, open world and all of that change is going to be driven by entrepreneurs. Like the Out there and they are going to be making amazing things happen if we want to be there for you, hopefully we'll be able to back the best and the

brightest of you. Play Jump in there. I know it's been the summer of defy and I think your perspective on this is going to really interesting. I mean, you, you know, the summer of defy has has led to add exes. Decentralized exchange has seen a muscle in terms of facilitating trading and also a sort of evolution toward a decentralized future of our to CVS centralized exchange. I really curious about your views on, you know whether you're worried right now, are you worried that Jax's and see fire going to come eat your lunch, or do you think that you have the

adequate services and also you know, regulatory Tailwind behind you that will submit your position going forward. How does he had a nice Oro view the summer of defy? First of all, I think that Defiance is super interesting and I seen this is a bit of an unknown fact. We have to rebuild a decentralized exchange back in 2012 based on the colored coin protocol, we developed Toro, which was tokenizing acid, some top of the Bitcoin Network. So this was the beginning of thinking of

the nation and we have to leave build an exchange with a atomic swap, some top of Bitcoin now waiting for 8 to 15 minutes for the swamp last week in the in the lack of actual stablecoins. In real assets on the Bitcoin Network, actually made this a very big believer in defy. Specifically in the bloody of transforming. What today is a lot of legal mumbo-jumbo Rico We need some clearing settlement + 1 + 2, + 2, making all of them code making everything send me real time and making everything free Spirits potentially is cold, when you think about

complex Financial deals between multiple participants, which is very difficult to become a significantly simplified. So, I'm like, I've always been fascinated by how blockchain potentially simplifies transfer of that clearing settlement. When you think about sort of financial services where we are today, basically clearing and settling stock trading at the trillion-dollar a place for your volume. So I really think Define today as its Builders super interesting. It's really in its infancy and eventually The people born today and I consider

myself one of them and I'm playing with some of the protocols for financing for people who really understand, how to use, how to use, how to potentially, by the way, which is very important to look at the code, or at least read somebody who went through the totally different Broncos to make sure you're not into a scam that nobody really controls your coins. So it's, it's super important because these are the mechanics of this new world, but that's not the mass-market, the mass Market,

eventually need a simple user interface. A great user experience to ask. If the market, whether it's the crypto Market, whether it's the stock market is really about, simplify it in the user interface when I think It simplifies Financial transactions between the participant which could be by the way, super complex in today's world with lawyers and accountants needed to do and simplifies everything to coat in for those who understand code can read smart contract in, right? Smart contract. That's a lie cuz you don't need to

talk to lawyers, which is great for those two. Really were just want experience of trading and investing. I The Witches, eventually the mass-market, I think for those they would still need platform like it to be able to access the global market in the more than that. When you think about trading and investing in general, it's not the only about the simplified user experience. Sometimes about really finding, how do you make the decisions I eat? Or would you approach that you can actually call Peter top creators or so something that's worth a different. How do you simplify

the decision-making of? Where do I invest? How do I invite? How much do I get to again? The massive Global audience. And I think that's the biggest difference between today, and you do 20 years ago with a dog calm, bubble is just the market is so much bigger, so much such a big Globe from Israel. Was originally based in to the US to Asia to Europe. Entire world is now connected. The entire world is using using Bitcoin. And I think that's really the world that Tim just

defined that ten years from today. Everything is going to be one Global Marketplace for everybody to ask this trade invest in an event for everyone around the world. Yeah, I love that covering his face cuz we're in this transition moment and which transition comes first. Tension and comes drama and comes legal enforcement, obviously, headlines. Last week, you know, a derivatives exchange notorious for not abiding by the legal mumbo-jumbo that most most players in the market abide by,

when you get this action. In this Department of Justice action, by the US to, to the strike out against bitmex, what's your take away from that new story that emerged last week, and I really have to go to detention of markets and also the mass Market. I think I can only talk about you, don't we tour Roseview about regulation? I think in general we were always very strict and straightforward about being regulated. We were the first regulated basically

broker-dealer who was trading and stock trading who was able to offer cryptocurrency trading Bitcoin vs. Leicester be with is that with a lot of collaboration from a Regulators in the UK in Europe in Australia were not regulated across four states in the US offer crypto trading and we're doing, that was sort of talked to him to talk to us legal advisors in the US. So our view is that it's very important for large players, that companies like us to, with millions of users to be

regulated and to give us comfort of Regulation to the math consumers. Now obviously Bitcoin as itself isn't something that can be regulated. And I think that's a very big part of the magic of Bitcoin as a currency, but I think there's a difference between companies or domiciled in a specific jurisdiction who have aspirations to grow their Enterprise Value and went to protect their consumers versus security. Protocols, which I do believe have a place in a place to be unregulated because they're purely code. They don't deal with

Fiat. And again, if you think about it, in the Bitcoin protocol, a big part of magic and assassination of a lot of people around, it was Wild, Bill, someone someone Anonymous built it and it's good just to run forever. Without the need of the complexity of regulatory approvals, Etc. I think in general, there is a place for decent realization and the unregulated space, but I think if you are a company and you are handling, customer asked if you're taking on yourself a big responsibility and I'm the auto

parts in it, whether it's in a week, installing weather is custody of customer funds, Etc, and then consumers, especially the mess markets. Consumers, who wouldn't understand they're investing in some place else. Should probably do that. In an unregulated market place is exchange of their broker-dealers where developers of protocols innovators can obviously think about distance from the station at cetera and I think there's a link between those two in. The company are very cautiously looking at this face and it has a team while Collabera.

Communicating with Regulators, but I think again there's a big sister Nation around the decentralisation and unregulated space as well. Yeah, I think just the philosophical underpinnings of that are really fascinating and I would I would love to pick your brain further on that at a later date. I do want to go back to bitcoin. We mentioned, you know, this is the summer of defy. This is the summer of unaudited smart contract with weird vegetable names and a staggering yields. You know, it seems like there is sort of a Groundswell yet. Are you going to mean

but steady flow throughout the statement is Bitcoin boring? Yes, no. And why? Boring boring, usually does create value, I think, I think I I look at it this way and I'm going to reflect back on your, on your last question to about Regulators. I think was there's some really interesting Dynamics happening in the world today. Various governments are Please mute. So that the regulated environment is is an ongoing Dynamic situation. And if your regulator you say, wait a second, what are you guys doing? And if you're an innovator, you going to

hang get on board. This is going to be so can you guys please? We're we're still here and I don't want to listen to the background from the back room. Okay, hopefully their audiences in hearing that. All that noise, it were here. Okay. So so you have the this this friction is created by the innovator and the regulator, and they're trying to figure it all out. The Regulators are in some ways trying to protect their people. But in some ways, they are concerned. Because all the sudden, if you, if you're just operating your entire business in

crypto, where are their tax, and I think they feel like they've solved that problem, but they really have, because, here's what I Envision, I Envision being able to create a fund that is all in Bitcoin. They invest in Bitcoin, I put it into all that entrepreneurs and supplier in Big Pine Bay, pay their employees and suppliers in Bitcoin. The whole thing can be kept on us on a on the blockchain. Good for everything and then a smart contract and make sure that everybody gets paid what they're supposed to get paid at the right

time. That's perfect for an economic point of view, if your government entity you're saying, whoa wait, where do I fit in here? And I think the the way to fit in is somehow for government recognized that. The first thing, they really need to do is figure out texting and the way you would tax is either you tax on transaction, like 400 1% on every transaction, a group or, or you treated exactly the same way as you treat other currencies, but you allow those businesses to operate

completely in bed, and then pay your taxes in Bitcoin. So that you're not paying a bunch of accountants to switch back and forth and back and forth between dollars and Bitcoin in dollars. It's The Regulators are need to think. How do we simplify the system now instead of, let's support lawyers and accountants forever. I think there's this, we have now the technology to do something really, extraordinary with the economy, with the world economy, we have created a frictionless system,

it doesn't, it doesn't require. The merchants to pay 2 1/2 to 4% to the bank. Every time you swipe a credit card that doesn't require all those transfer agents in in all that garbage. That Johnny was talking about to get, in the way of progress, we have a new vehicle for Progress. So if the If, if a governments are comfortable and they feel like, Hey, we're getting the taxes were supposed to be getting, then The Regulators won't be as nasty and they won't feel like they have to come down so hard on people

because because they were getting their teeth. And I think that that's going to make a big difference going forward, I think we're going to end up with something really extraordinary, but the government's are going to win, are the ones who get out in front of this and they they go for it. And the ones they were going to lose are going to be the one to say no. But it all has to translate back into dollars or Euros or whatever. No, move forward, take your taxes and Bitcoin and go forward that way. This is going to be a really interesting time and the

transition may be a little bit shaky and so things like the the Big Macs and other things are going to happen. But you're you're Also add a really interesting time that, you know, 10 years from now, we are going to have a very smooth operation of the economy and it'll be glow. Very exciting time, so not sure if the first party but I got to go the right way and then Johnny also hit hit on user experience. Absolutely. The only ones who are really getting involved in big me in Bitcoin and crypto and whatever our engineers

and and so as you can improve the experience and make people feel more comfortable about it, great things are going to happen and that's where, you know, my prediction for $250,000 per Bitcoin happen. You know, that one out of 14, Bitcoin wallet is on. By a woman. Only one out of every 14 but women control 80% of the retail spending. So when those two things come together and the women in here, this is going to be and they realize, hey, I'm saving two and a half percent. Every time I swipe my credit card, this is going to be a world where we're kind of going. Wow, why did we ever

use dollar as a political force? Yeah, just want to add something, which I think is super important importance of Central Bank, digital currency. So I'm not sure a lot of countries are going to wave their currencies, but I think it's a country's going to be smart enough to create a central digital currency as through the federal government. But that creates a frictionless I think that's really a moment and probably a more probable scenarios and having like government say,

okay, let's give out of control. And I think that is the core here is, when governments really embraced. It, I'll just add to that the non popular and very unpopular. If I was the Regulator, maybe we'll have a grave gray hair. I would actually be the man, the JP's the goldmans, the Morgans, the Citibank every single transaction has to happen on the Block. So you're not allowed to do any single friends, accents, North on public boxing. Division of Enoch Christian Carlo and others. You know, when you hear them talking about the

2008 financial meltdown and they talk, you know, forcefully emotionally emotionally intelligently about how a lot of this. A lot of this financial catastrophe could have been a lot of this stuff was more transparent when recording publicly questioned. You know you mentioned something Yanni though. Because sure in in the US people may still want crypto dollars. But why would you want a currency that is like Iceland created or who cares? It's only going to be able to be used in Iceland. Are we talking about? I just talked to you about things like the dollar like the Euro. I

mean like I had my grandson always prepare the US dollar over. Basically, what I'm saying is that that might be possible. Some people like their US dollar or you don't know where the pound to, to transact to reconcile. And if that works really smoothly and Frisch's in a spiritualist environments with digital currencies, I think that's great. Are you? I understand why Warren Buffett wants everybody to work in dollars because he's got a lot of dollars, but I don't think his grandson Willow Street. Exactly

the same thing about you and Bitcoin. He's right now. Where was this at? Adjustments on lunch and some lunch and watched these gems were dropped into to believe in Bitcoin has went. Well I go down to deliver in value. Investing. Oh no. Oh no. Oh, he can bring it to you. I do know, I would love to have been a fly on the wall at that meal. If you want to share any any nuggets in a PG-13 nuggets on that meal, I'm all ears. you know, that Warren Buffett has half of its portfolio is Banks and in another 10% is insurance company

anywhere near him until he can Spell almost a hundred percent but in the blockchain, which was interesting cuz we hear a lot of smart people talk about blockchain, do miss City, understand the Bitcoin, the radius of gold. But he was very clear that these years, from all the CEOs, in the smartest people in the world that the blockchain is, is the future. And I think that's a good start. So this is the future. I am be there to sort of parallel tracks. There's the

macroeconomic Bitcoin as an asset existing Financial Services Berry. My moderators Duty and keep us to time. You know as a moderate we swear, we swear to this house. We just ran out of time right on time. This perfect time I saw us about the organisers but first, thank you. Tim you Yoni. It's a it's great to talk to you both. I'm looking forward to the on-stage performance of the Bitcoin hustle remix at a future date. So, thanks so much for joining us

now. Thank you very much.