Did Bitcoin just END Ethereum?

hey everyone me kevin here wow we just

had our first bitcoin upgrade in four

years and in this video i'm going to

describe what happened what the benefits

are what this means to you and what does

this mean for ethereum because now some

people are asking is ethereum dead and

that can't be good given that i also

invest in ethereum and bitcoin so let's

get right into this okay so what

happened so the tap root soft fork

happened and unlike the last massive

update that we had in 2017 which some

called so crazy and divisive that they

saw it as a civil war of a bitcoin the

taproot update was a soft fork and

was mostly supported

nearly a 90 plus a percent consensus and

compared to a heart fork we just ended

up with one block chain rather than two

see for those wondering a hard fork is

when a block chain splits and then you

have an entirely new chain and the

original old blockchain that still

exists so you've essentially turned one

blockchain into two blockchains one with

slightly updated rules

this is what happened to bitcoin in 2017

and then the older blockchain the

original version which wanted to keep

smaller

essentially byte limits on each

transaction to keep transactions simpler

to mine ended up being later called

bitcoin cash which is actually still

popular amongst many today uh and that

was the result of a hard fork where

again now you had two

blockchains and two totally different

now cryptocurrencies all

out of the result of a hard fork of what

was previously just bitcoin now you have

bitcoin and bitcoin cash well in this

soft fork you just have bitcoin becoming

bitcoin

uh with updated rules now the cool thing

about this update is well a lot since in

june we had over 90 percent of miners

signaling their support for this upgrade

to occur they ended up setting this

update to occur at a block in agreeing

to this that the update would occur on

block 7009

632 and that block has just successfully

passed and miners have successfully

migrated over to the new set of rules

this means that a new bitcoin

improvement and bitcoin improvement

protocols the first massive change since

the bundle of 2017 have made it we are

live the bundle in 17 by the way that

created this civil war s kind of

disaster was known as segwit or

segregated witness but that doesn't

matter so much because right now we got

to talk about taproot and what the heck

it means for the future of bitcoin and

ethereum all right so first taproot

gives bitcoin greater opportunities for

smart contracts smart contracts are a

variety of automated agreements that

individuals can make with one another

and are super popular today especially

with nfts non-functional tokens like

crypto punks but there are

thousands of different applications

let's just look for example at cardano

cardano just introduced and really

widely chained wide enabled smart

contracts via their alonzo fork in

september of this year and here are just

a few examples i'm going to pull this up

on screen now here are just a few

examples of all of the different types

of d apps or dapps essentially d phi

applications shortened and spelled d

apps but pronounced dapps here they are

there are a whole lot of them some of

these are meant for gaming some of them

are meant for nfts like crypto

nitties

you've got uh payment opportunities here

like travala

you've got uh derivatives stable coins

insurance called ensure here and you've

got lending and borrowing as well which

you see a lot of these used for uh

real estate hard money transactions as

well which many of you know i sell

programs on building your wealth

specifically a few for real estate real

estate agents one for zero to

millionaire real estate investing

getting started another one for

do-it-yourself property management and

rental renovations and upgrades

oh i'm big on real estate so when i hear

real estate hard money transactions

through d5 i get kind of excited but

that's just an example of some of the

very many uh programs that you could use

uh smart contracts for it's incredible

and now bitcoin is inheriting some of

the benefits of this now it's going to

be a while before we actually see a lot

of these contracts live but here's some

of the other uh updates and benefits

that we might see out of this tap root

upgrade so number one

smart contracts number two privacy and

that's because today

you can tell if a transaction is

multi-signatured or single signature and

taproot changes this taproot essentially

enables snore signatures to try to say

that 10 times fast and while the complex

details of this are way above my head at

least at this point as i'm doing my best

to learn all of this as much as possible

with the cryptocurrency rabbit hole goes

very very very deep and doing my best to

learn but anyway and the algorithm is

known as the elliptic curve digital

signature algorithm and it essentially

collapses multiple signatures into one

for example before this upgrade if you

had a contractor transaction with 20

different people you'd have to have 20

different signatures 20 different public

keys and then these sets would have to

be verified at each of them and that

burns time computing power it ultimately

costs a lot of money and it takes up a

lot of space on the blockchain because

you got to document all this stuff and

you essentially pay for your

transactions and how much data needs to

be verified so the more data you put in

the more you have to pay and so that

made

older kind of contracts clunky and

expensive with bitcoin but now you can

batch these together and essentially

bulk verify this set and this really

means you can now conduct transactions

much faster and for a much lower cost

than you previously could by essentially

creating one sig hash that's immutable

or unchangeable and that's now verified

or verifies multiple signatures and then

permanently records them kind of as one

say cash that's immutable not changeable

now the benefit of this is you can now

also hide details of smart contracts

from public view within this sig hash

ultimately bottom line it means when

details of smart contracts can be hidden

from the public you get privacy but you

also get other benefits beyond just

privacy you end up getting scalability

the more you can fit into a blockchain

transaction the more you can essentially

do with smart contracts see with bitcoin

there's a 10 000 byte script limit but

now since you have sig hash you can put

a whole lot more in or do a whole lot

more in a smaller space which

essentially lowers the cost so you get

privacy you get scalability and now

you're getting substantially lower fees

which is really good so so far tap root

smart contracts privacy scalability

lower fees but with less data being

public and the proof of work system that

you have with bitcoin which you do also

currently have with the ethereum network

backing these transactions we are

bringing the security of bitcoin to

essentially the ease of ethereum d5

transactions and this is very bullish

for bitcoin because a lot of the

criticisms of bitcoin have been that

bitcoin's potentially too slow you can't

yet do smart contracts unless you go out

to leverage level 2 in the lightning

network but there are complications with

the lightning network and you don't

really have a lot of smart contracts yet

yada yada great so when do we get to use

bitcoin smart contracts and when is this

all actually going to be a reality and

how come the price of bitcoin isn't

moving

well first bitcoin we'll start with that

one the price of bitcoin it hasn't

really moved much off this hard fork

it's rubber banding right around 64 000

mostly because as expected and hoped for

this update was pretty uneventful which

is kind of what you want anytime you do

a fork you don't want events happening

because that means you have problems

happening and problems in defy are bad

remember when we had problems with

solana which i think was unfair but

still you had problems with solana and

all of a sudden within four hours we

were able to get verifiers uh or the

bulk of them to uh you know two-thirds

plus of them to be able to agree to

restart the network and uh you know that

that brings in the question the whole

decentralized aspect now i've made a

video disputing this but still that's

something that lingers ask anybody about

solana these days and unless they're a

bull they probably refer to the outage

in september i've broken it down watch

my solana video just type into youtube

meet kevin solana but anyway uh nothing

happened so far with bitcoin which is

very very good because if something did

happen uh then obviously especially

something that could jeopardize the

network you could kill confidence in the

entire technology which would be very

bad

but it's also worth noting that you

didn't really get this big cardano slash

fork style run up in the price of

bitcoin which ended up turning into this

buy the rumor sell the news for cardano

where it ran from a buck 30 to almost

well actually just over three dollars

and then fell a dollar down to somewhere

around two dollars

right this was really uh sort of a buy

the rumor momentum and then a sell the

news plummet that you saw with cardano

you didn't really get that here with

bitcoin

what you really just had was actually a

very successful fork so far at least and

this has again led people to say wow

that went so well does this now end

ethereum is this the ethereum killer

because this is really what level two

solutions like ethereum have done for d5

and now bitcoin can do it well the

answer here is no the update to bitcoin

here will really likely take years to

come to full fruition

by that point we could be at a totally

different level with ethereum we could

get to uh you know the proof-of-stake

version of ethereum which is highly

anticipated next year there there are

some folks who are saying we're never

actually going to get to proof of stake

we're not going to be able to get this

fork done this transition done a lot of

folks very very hopeful here for

ethereum so there is a lot of contention

though in terms of what the future of

ethereum might bring but at least in the

meantime what we do know is these

benefits that ethereum has

minus the fact that ethereum at the

moment is kind of expensive in many

cases uh

bitcoin now actually gets in a more

usable way this means developers can now

create smart contracts cheaper faster

more scalable more secure than ever

before and we have more privacy than

ever before with smart contracts and

bitcoin and so you've essentially just

turned on the switch for like all right

everybody now go build programs and this

is exciting which if you like programs

make sure to check out the programs on

building your wealth link down below

because there's a wonderful coupon code

there and remember price always goes up

so you're never going to get a lower

price if you buy today so check those

programs out down below but seriously

look it's going to take a while before

we actually get functionality out of

this bitcoin update but it is a huge

update is very very very good for the

future of bitcoin i find this very very

bullish and the fact that this went so

smoothly and without a h and kind of got

low media attention in my opinion is a

very good sign and it's a reason to be

bullish it's a reason to celebrate

bitcoin so uh do i again think it is an

ethereum killer no yeah ethereum killer

would be ethereum not being able to get

over to proof of stake and then you

starting to lose confidence in the

entire ethereum network and then does it

maybe just stay a proof of work uh

competitor but then it doesn't have that

quite deflationary aspect because you're

still minting more than you're burning

via gas fees uh and if gas fees go down

there are a lot of uncertainties right

look there are a lot of uncertainties

with all cryptocurrency regulation it

doesn't matter you name a blockchain i

will name 10 uncertainties for you okay

but the good news is at least for

bitcoin and ethereum right now this is

all just

bullish for the entire industry i don't

think that this necessarily means

bitcoin is now better than ethereum

we're not even close to that and again

by the time we might actually be

ethereum could have potentially leveled

up to the next stage

or it could die

right which is also impossible i don't

expect that but uh you can never say

never

anyway thank you so much for watching

this again check out the programs on

building your wealth link down below and

folks we'll see in the next one thank

you so much goodbye

[Music]