The Peter McCormack Show

Latest Episodes:

The Future of Bitcoin Mining & Security with Sam Wouters - WBD618 Feb 13, 2023

Show notes

Sam Wouters is a Research Analyst at River Financial. In this interview, we discuss Bitcoin's hash rate: what it is, the factors affecting its growth, what this means for Bitcoin's security budget, and what this means for Bitcoin's energy needs. In short, there is a symbiotic relationship between expanding Bitcoin's real-world utility and securing the blockchain.

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Proof of Work is Bitcoin's central innovation: the development of a process that through game theory keep the network honest, and provides security from outside attack. It enabled a global store of value that does not need centralised armoured physical vaults for security. However, the process of hashing that enables PoW requires large amounts of power, and, with the halving mechanism, requires an increase in Bitcoin's price, transaction fees, or both, to maintain equivalent network security spending.

Bitcoin's energy debate in 2022 was completely realigned: rather than being an attack vector for opponents, Bitcoin mining's energy use has developed into a marketable attribute. Mega miners have sought new revenue streams and cheaper energy which has resulted in huge innovation in the industry. There is a growing realisation that Bitcoin's utility is a powerful tool in supporting the energy transition and mitigating climate change.

This means that we are potentially entering a paradigm, where knowledgeable decision-makers desire an increase in hash rate to satisfy other needs. But, there is a long list of variables affecting this: Bitcoin's price, base layer transaction demand, ASIC supply chains, ASIC efficiency, and domestic and international political pressures. This means there is a range of possible forecasts.

Irrespective of the potential future drivers that can influence Bitcoin's hash rate, fundamentally the issue is that the hash rate must continue to grow. It is Bitcoin's security budget that is of primary importance. All other demands fall away in this respect. Bitcoin's adoption, use and price are all critical in relation to this. As are the efficiency gains in mining rigs. If people want to use Bitcoin mining for other purposes they need to be cognizant of these issues.

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Responding to a Financial Crisis with Jason Brett - WBD617 Feb 10, 2023

Show notes

Jason Brett is a former FDIC regulator who worked through the 2008 Global Financial Crisis. In this interview, we discuss the events that led up to the 2008 GFC, the implosion of IndyMac & subsequent bank-run and what to expect from regulators following the crypto contagion of 2022.

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In 2008, the Global Financial Crisis brought the economic world to its knees. The crisis was triggered by a combination of factors, including the subprime mortgage crisis, the failure of large financial institutions, and some outright systemic corruption. One of the most notable events during the GFC was the bank run on IndyMac, an institution that failed due to a lack of confidence among its depositors. This event was a clear sign that the financial system was in trouble, leading to calls for greater banking industry regulation.

In response to the GFC, governments around the world implemented a range of regulations. These included increased capital requirements, restrictions on risky lending practices, and increased scrutiny of financial institutions. These regulations aimed to make the financial system more robust and reduce the risk of another crisis.

It's easy to draw parallels to the 'crypto' market in 2022. Luna, 3AC, Celcius and FTX all failed because of their lack of adequate risk management, sketchy lending practices, and some out-and-out fraud. Calling into question concerns about the stability and legitimacy of the crypto industry and, unfortunately, dragging bitcoin into this discussion.

While we may see Bitcoin as totally separate to 'crypto', lawmakers and decision-makers do not, and in the fallout from the crypto contagion, we may see draconian regulations impact us going forwards. So what can we learn from the GFC in 2008, and the regulation that may affect us in 2023?

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The Evolution of Bitcoin Narratives with Harry Sudock - WBD616 Feb 08, 2023

Show notes

Harry Sudock is Chief Strategy Officer at Griid. In this interview, we discuss a range of narratives evolving in 2023: how Bitcoin's value is to be explained to newbs, making sense of the general paranoia in society, the critical importance of nuclear energy, and making sense of 2022's financial contagion within crypto.

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2022 was a heck of a year, the impact of which is still being felt into the early part of 2023. However, as January turns to February, the focus is turning to what 2023 holds for Bitcoin and wider society. And who better to review the year to come than Harry Sudock.

We discuss the evolving narratives used to explain and advocate for Bitcoin. As the fatigue of dealing with 2022 diminishes, how are re-energised Bitcoiners to educate those who are financially and/or technically literate but lack a grounding in Bitcoin? What are the best arguments to use to explain Bitcoin in the US, where there is a less immediate need for its utility?

Further, how do we navigate the world around us? The social discourse is increasingly beset by paranoia and distrust. At the same time, there is a lot to distrust: lies and spin have become so ubiquitous and brazen that we are effectively being told to believe up is actually down. Is it any wonder that people see conspiracies where there are none?

Beyond creating a noisy and chaotic public square, the real problem is we're unable to properly address society's most pressing issues. Take energy for example. The last few podcasts have shone a light on the myths and realities of nuclear energy. It is quite clear the obvious path to providing sustainable and abundant energy lies in supporting the development of nuclear infrastructure.

So, the path forward seems clear. 2023 needs an unrelenting focus on giving exposure to the truth, whilst calling out vested interests and virtue signalling. Nuance, pragmatism and veracity are the vital principles that have and will underpin all of What Bitcoin Did's content. 2022 was about lies being exposed throughout crypto. Bitcoin in 2023 about its inherent truth.

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The Future of Nuclear Energy with Everett Redmond - WBD615 Feb 06, 2023

Show notes

Everett Redmond is a nuclear engineer working as the Senior Director of Fuel Affairs at Oklo. We discuss the enormous challenges and opportunities in renewing the US's nuclear fleet over the next decade, Oklo's development of fast nuclear reactors, and how such small modular nuclear reactors will soon become commonplace.

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Biden's White House has embarked on an ambitious climate change policy: it plans to eliminate fossil fuels for energy production in the U.S. by 2035. But, as anyone who has knowledge of the energy grid knows, this can not be replaced by traditional renewable energy sources: wind and solar both have intermittency and geographic constraints, hydro is even more geographically limited, and biomass has a range of issues such as the scale of land required and emissions.

Whatever technology is used to produce sustainable energy in the future, it needs to provide a minimum level of base power that can enable human life to flourish in any and every location. Nuclear, despite the widespread fears, presents that opportunity: it is an extremely dense, reliable and effective power source. And yet, political pressure has resulted in the industry flatlining over the past few decades.

Nuclear provides 20% of the US's energy needs. It has been like this for the past 20 years, over which time only 1 new reactor has been built. This lack of investment means the US nuclear fleet has an average age of over 41 years, the third oldest in the world. Experts realise nuclear needs to be central to Biden's climate change ambitions. And yet, the renewal of the existing fleet represents a challenge in itself, before thinking about increasing capacity.

But there is a path forward: a new generation of fast nuclear reactors provides an opportunity to have modular designs, streamlining the build and planning process, and reducing costs and development timescales. Such reactors are designed to be inherently safe and can support a range of energy needs beyond just electricity production. Further, such reactors can use spent fuel and significantly limit the amount of waste produced. We are on the cusp of a nuclear future.

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The Truth About Nuclear Energy with Anthony Jared - WBD614 Feb 03, 2023

Show notes

Anthony Jared is a 30-year Navy veteran and who has operated nuclear reactors on both nuclear submarines & aircraft carriers. In this interview, we discuss the truth about nuclear energy, the safety concerns and why there has been such a prolific anti-nuclear movement.

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Nuclear energy is a contentious issue. And yet…

In terms of death rates per unit of electricity production, accounting for accidents and conservative pollution assessments, nuclear energy is the second safest source of energy: solar has 0.02 deaths per TWh, nuclear 0.03, Oil 18.43, coal 24.62, and brown coal 32.72. This equates to someone dying prematurely as a result of nuclear every 33 years in a town of 150,000, whilst in the same town as a result of coal 25 people per year would die prematurely.

Nuclear is the cleanest energy source. Per GWh, nuclear produces 3 tonnes of greenhouse gases, solar 5 tonnes, natural gas 490 tonnes, oil 720 tonnes, and coal 820 tonnes.

Little nuclear waste is generated, particularly where waste is reprocessed: in France, less than 0.2 of the waste is high level. US Oak Ridge National Laboratory estimates coal-powered plants carry 100 times more radiation than nuclear power plants into the surrounding environment.

Further, nuclear has the potential to be the cheapest energy source. A cost comparison is complex: for every analysis stating nuclear is the most economical energy source, there's a report stating the opposite. However, nuclear investment has dropped considerably. In 1979 234 reactors were under construction around the world. In 2022 there were 59. Innovation and economies of scale haven't benefited nuclear. Rather, it's been beset by increasing regulatory costs.

Why is nuclear energy a contentious issue and what is the truth?

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America's Role in the New World Order with Natalie Smolenski - WBD613 Feb 01, 2023

Show notes

Natalie Smolenski is an Executive Director of the Texas Bitcoin Foundation and a Fellow at the Bitcoin Policy Institute. In this interview, we discuss why America needs to be re-found. We talk about the self-destructive impacts of striving for supremacy, what the American project stands for, trying to build solidarity across the divide, and the importance of Bitcoin.

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The great irony of the twentieth century is that in winning the cold war America has lost its way. Far from the defeat of the Soviet Union being a stepping stone to cementing US hegemonic power, within a generation, we are seeing a fracturing of the global order and the decline of western liberal democracies. The importance of the American dream as a projection of soft power has waned.

In the face of a multi-polar world and a wave of significant issues that need urgent action, politicians are losing confidence in trying to win the battle of ideas. The race seems to be about winning the battle of technology without going bankrupt. Optimism and hope have been replaced by cold strategic pragmatism.

Endless wars have dulled Americans' enthusiasm for being that shining city on the hill. But, is this myopic thinking? The long lens of history shows that the projection of America as a beacon of hope was through manifestations of the principles of liberty, equality and justice on which the country was founded. America became a magnet for the strivers of the world. Can it become so again?

What is clear is that prior to renewing its confidence as a global power that champions freedom, America needs to heal the domestic divides. A nation needs to be united internally if it is to thwart external threats. This means finding new ways to engage and identifying new leaders to take ideas forward. It also means embracing again the old ways of thinking: that America's "glory is not dominion, but liberty."

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The Rise & Fall of the Russian Empire with Michael Malice - WBD612 Jan 30, 2023

Show notes

Michael Malice is an anarchist, author, and podcaster. In this interview, we discuss his latest book, The White Pill: A Tale of Good and Evil. It charts the rise and fall of Russia, its insidious evilness, how western intellectuals supported and justified the communist state from afar, and why it is impossible for those in the west to comprehend how pervasive a totalitarian regime can be.

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Ask anyone to name the evilest empires in history and it is highly unlikely that the Soviet Union will be anyone's first suggestion. And yet, the regime is estimated to have killed 61 million people during the 20th century, most of them by Stalin. It is called democide, the mass murder of citizens by their own government, and the Soviets are history's worst.

The killings of people throughout the Soviet empire took various forms but included executions, famine, forced labour, starvation, mass deportations and massacres. Human life was cheap, and nobody was immune from the wicked regime. And, in addition to the violence, the state employed an all-encompassing oppression of its citizens, involving surveillance, censorship, and fear.

The reality of the Russian Communist State was maintained well beyond the moment it should have ceased functioning, chiefly because everyone had been brainwashed, from workers to the leaders. That this fairytale was a sham couldn't be hidden forever, and once the facade started to give it didn't take long for the whole edifice to crumble away to dust.

So why has the evilness of the Soviet Union been downplayed in the west? There are many reasons, but an intellectual affinity for communist ideals is the root cause. Western intellectuals were often in favour of the Soviet Union and its goals of creating a socialist utopia, and many supported the idea of the state as a progressive force. This attitude was rife in the 1930s, but, it still has centres of support today.

That a massive country can rapidly change its governance structure, inflicting violence and fear on millions and millions of people, and maintain its position for decades despite corruption, abuses and stagnation, is a salient tale for us all. Notably, as many of the cultural elites defended the regime from afar, and, that this story has been largely forgotten.

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From Paralysis to Bitcoin with Kale Hyder - WBD611 Jan 27, 2023

Show notes

Kale Hyder works in an investment bank. In this interview, we discuss how his life 7 years ago changed on a dime: a rare spinal inflammation led an aspiring high school basketball player to have to deal with becoming quadriplegic. We talk about the physical and mental rehabilitation, and how, with the help of others, he's found direction, purpose and happiness.

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Think about what you're going to be doing next week. Are you working or studying? Will you be engaging in hobbies? Do you have any household chores that need completing? What social plans do you have? We all plan for the future and accept it as a given, but that's not always the case. For Kale Hyder, all of his future plans were wiped away overnight.

One week he was at high school, studying, playing basketball & planning for his future, the next, he was unable to move. Panic and disbelief led to a hospital visit and tests and a diagnosis: transverse myelitis. Spinal inflammation. And that was it, Kale was paralysed. Life changed. Forever.

Cases like Kyle's are rare, and the causes aren't properly understood, but it results in irreparable damage to nerves in the body's communication highway. The damage Kale was left with was made worse by where the inflammation was in his body. Kale's spinal cord swelled at the base of his neck, and he became a quadriplegic, he could no longer move any of his limbs.

In this fascinating discussion, we talk about the long process of treatment and rehabilitation, learning to redevelop basic skills, how the body adapts and reconfigures itself, and the need for mechanical aids to perform functions previously taken for granted. Kale also opens up about depression, frustration and resignation.

It's a story about acceptance and finding new paths. It's a story of realisation and insight. Happiness and fulfilment found in unexpected places. It is uplifting to hear such wisdom from someone who's had to face the worst that life has to offer. It is a story that ends up with Bitcoin, but it is not a Bitcoin story.

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The Great Uprising with Vivek Ramaswamy - WBD610 Jan 25, 2023

Show notes

Vivek Ramaswamy is an entrepreneur and author. In this interview, we discuss his thesis that social and political struggles are rooted in the rise of a managerial class dominating society at the expense of everyday citizens. We also talk about the need to revive a binding national identity, and how the social justice movement may be causing more harm than good.

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Public choice theory influenced a generation of conservatives around the world in the 1970s and 80s. In essence, the theory applied economic thinking to political behaviour. It undermined the notion of public interest: it was a nebulous irrelevance in relation to public policy as all individuals, including politicians and bureaucrats, work in their own self-interest.

What resulted was the development of a managerial class that would be incentivized to achieve specific aims through monetary rewards. This class has grown since the 1980s to now represent, in some people's views, an oversized controlling force within society. However, their decision-making is increasingly outside of the purview and influence of ordinary citizens.

Vivek Ramaswamy believes this friction between managers and everyday people is at the root of the current social and political struggles within society. Exacerbating these tensions are increasing incidents of managers being coopted by elites to do their bidding, undermining constitutional norms. Vivek believes that we are now at a defining moment when the defining principles of political organisation need to be reviewed.

The ideals and principles of the United States, as laid out in the constitution, became a unifying force around which a vibrant national identity was developed. This, until very recently, facilitated and supported American hegemony. But, in short order, that binding sense of a united vision has been replaced by factionalised ideologies that threaten the viability of the American experiment.

The fundamental issue is that the notion of Americanism has been allowed to wither. Vivek believes that to combat China and meet the other great challenges of our age, America must find again a shared national identity that eclipses current partisan divisions. In essence, the US must retrace its steps before venturing forward.

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Bitcoin Security + the Future of AI with Jameson Lopp - WBD609 Jan 23, 2023

Show notes

Jameson Lopp is the co-founder & CTO of Casa. In this interview, we discuss why Casa has extended custody support to Ethereum, important security lessons from the Luke Dashir hack, Bitcoin security & inheritance planning, and how AI came of age in 2022 with the release of ChatGPT.

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Last year provided the most brutal examples of why "not your keys, not your coin" should be the first thing anyone new to the ecosystem learns. Dave Portney's infamous tweet questioning where his Bitcoin was after FTX blew up, showed how generally unaware people are of the risks associated with exchanges, and the importance of custody in relation to ownership.

However, there are also those who quite reasonably need greater protection than that offered by a hardware wallet. There are many examples of people losing access to their Bitcoin held off-exchange. Further, the hacking of Luke Dashir's security setup shows the risks of bespoke security solutions. This is where Casa comes in - providing multisig custody solutions for Bitcoin holders.

Casa has now extended its service provision to Ethereum. For Bitcoin maximalists this may be viewed as a red line having been crossed. For those who hold Bitcoin and Ethereum, this may provide a practical one-stop shop solution that convinces them to take their holdings (including Bitcoin) off exchanges. There are merits to both sides of the pragmatism versus maximalism argument, which is sure to continue to be debated throughout 2023.

And yet, history may relegate the significance of the collapses in crypto in 2022 behind last year's massive advances in AI technology. ChatGPT, in particular, has the potential to revolutionise the employment market: online customer services, copywriting, journalism, consulting, academia, computer programming… the disruption to white-collar workers could be unprecedented.

Despite being less than 2 months old, ChatGPT has led to a pervading wave of excitement and hysteria. It is a wake-up call of how technology can rapidly interrupt the assumed order within society. The issue is that it will be followed not only by advances in its own capabilities, but other technologies will follow in biotechnology, VR, nanotechnology etc. etc. etc. Are we on the edge of the greatest revolution to impact humans?

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