Banking Bitcoin with Allen Farrington & Eric Yakes - WBD756

Allen Farrington is the co-author of ‘Bitcoin Is Venice’ and Eric
Yakes is the author of ‘The 7th Property’. In this interview, we
do a deep dive into the future of the Bitcoin-centric financial
system, focusing on self-sovereignty, scalability, and the future
of banking. We also explore the potential of Bitcoin to serve as
a superior form of money addressing issues of custody and
sovereignty, and the separation of money from state influence.


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The development of Bitcoin’s ecosystem is a balancing act: making
Bitcoin scale whilst ensuring it maintains its offer as a medium
for self-sovereignty. In this podcast, we discuss the current
trade offs being debated within the community, focusing on the
impact of high transaction costs, whether the Lightning Network
equates to true self-sovereignty, a growing concern that UTXO
ownership might become a privilege, and the role of covenants.


The underlying issue is the potential for the community to
develop a neutral financial system directed by market
participants. We discuss the potential for Bitcoin to serve as a
better form of money, particularly in terms of its scarcity, its
speed and cost of movement benefits, and the potential for shared
custody models. We address the risks and trade-offs associated
with moving into a Bitcoin-centric financial system, particularly
in terms of custody and sovereignty.


Eric and Alan explore the idea of reducing information asymmetry
and constraints within economies, and the implications for
fractional reserve systems. They emphasize the importance of
creating systems that increase information transparency and
reduce the likelihood of fraudulent activities. The guests also
discuss the proposal for “Ark”, its prospective role in a Bitcoin
financial system and its potential to address Lightning liquidity
issues.


As we move forward, it's clear that the Bitcoin ecosystem is at a
crossroads, with emerging technologies offering both solutions
and new challenges. The path to a Bitcoin-centric financial
system is fraught with technical, economic, and philosophical
questions that require our collective attention and ingenuity.
This podcast is a chance to hear how two of the community’s
leading thinkers are collaborating to consider these complex
issues.


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Show notes:
https://www.whatbitcoindid.com/podcast/banking-bitcoin


This episode’s sponsors:
Iris Energy - Bitcoin Mining. Done Sustainably
Bitcasino - The Future of Gaming is here
Ledger - State of the art Bitcoin hardware wallet
Wasabi Wallet - Privacy by default
Unchained - Secure your bitcoin with confidence
Bitcoin Atlantis - A Bitcoin conference in the Atlantic
SwanBitcoin - Invest in Bitcoin with Swan