Bitcoin Explained

On this episode of Martinis and Your Money, I'm talking to entrepreneur and host of the Liberty Entrepreneurs Podcast, Ashe Whitener, about something he's very passionate about – Bitcoin. I have to confess that until this conversation, I had no clue about Bitcoin. I had heard about it, but I really didn’t know what it had to do with me personally. If you're like me, you will really enjoy this conversation with Ashe and feel more confident in your Bitcoin knowledge at the end of the day, which is truly my goal with this podcast. I hope that at the end of every show my listeners feel educated and entertained. Cheers!As a side note: the first Financial Gym location has opened in New York City at 226 5th Avenue, 5th Floor. Please stop by and have a drink with us if you are in the area or check out The Financial Gym online for its tools and resources to help you break free from your financial challenges and live a financially healthier life! We’ll kick your assets into shape!

What are we drinking?

Ashe — Lemon vodka & mountain dew

Shannon — Deep Eddy’s grapefruit vodka & club soda

Podcast Notes

Ashe is very passionate about digital entrepreneurship and how it helps people become the freest person that they can.
Before becoming an entrepreneur, he went to school and graduated with a few engineering degrees and worked as a computer programmer for several years.
As the economy was crashing in 2007, Ashe sought out other individuals that liked economics, appreciated the free market and entrepreneurship, and wanted to take a chance.
He then moved down to St. Vincent and the Grenadines to help start Euro Pacific Bank.
His interest in Bitcoin began in 2011.
Bitcoin was created in January 2009 as an opt-in/opt-out type of financial system and currency.
It is a computer science-based currency rather than a central bank and political-based currency.
There is a cap for bitcoin set at 21,000,000 and this allows us to know the exact inflation rate for it.
When Bitcoin was invented, it created the internet of digital scarcity.
- This is the most fundamental aspect of Bitcoin.
- For the first time ever, you can give someone something over the internet and then no longer have access to it.
To purchase bitcoin as an individual, you connect your bank account to a Bitcoin exchange – very similar to stocks.
Your bitcoin is kept in an online wallet/app – such as airBitz – which is controlled completely by you.
One site that allows you to pay for purchases using bitcoin is gyft, which sells gift cards from over 200 retailers.
You shouldn’t use bitcoin just to use bitcoin – it needs to solve some pain.
Shannon says she thinks a risk of bitcoin is the chance it potentially could be controlled by one person.
However, Ashe doesn’t believe there is much of a chance for that to happen and explains why.
Bitpay has all the bitcoin exchange rates.
Shannon asks Ashe if he is ever concerned about the exchange rate of bitcoin.
Ashe explains that since bitcoin is so decentralized – not owned by one central bank or central government – it trades 24 hours a day/7 days a week/365 days a year making it much more secure and trustworthy.
Bitcoin was the first of the digital currencies, but now there are hundreds of different digital currencies.
Shannon asks Ashe where he sees the future of digital currencies heading because she wants to know why she should learn and care about it.

TAKEAWAY: Never sit on the sidelines and feel dumb about any subject matter, like I did about bitcoin. Take the time to do some research – talk to experts, read blogs, or listen to podcasts – and find the knowledge. “Knowledge is power!” – Francis Bacon