John ‘Jack’ Pitts on The Friendly Bear Podcast: Short Selling Can Be Toxic and Can Affect the Bitcoin Psyche
John “Jack” Pitts is the founder of the BSV SLictionary app, and not too long ago he joined David aka Reverse Long on the Friendly Bear podcast to discuss digital currencies, blockchain technology, and more again.
Jack has unique insight into BSV, being an early adopter of technology, and he’s been around the neighborhood too. Having seen the rise and fall of the Dot Coms when he was a hedge fund manager, he still has an interesting perspective to share on where we stand when it comes to digital currencies.
How come very few people recognize that Dr. Craig Wright invented Bitcoin?
Jumping straight to the heart of the matter, David asks Jack how it is possible that relatively few people have acknowledged the truth that Dr. Craig Wright invented Bitcoin.
Jack quotes one of his articles, “Three Wrights Don’t Make a Wrong”. In it, he describes how this actually has historical precedent; many doubted the Wright Brothers when they invented the first working airplane. Many accused them of fraud and scoffed at their claims as they quietly and diligently worked to perfect and patent their technology.
Jack thinks Dr. Wright refused to publicly prove he was Satoshi because he wanted to build up a strong patent portfolio first and gain an edge over potential competitors. To date, it doesn’t provide absolute, irrefutable public proof, but it’s easy to understand for anyone who wants to research it properly, Jack says.
The toxic psyche of short selling and naked shorting BSV
David starts talking about trading and Jack tells him that short selling can be toxic and affect the psyche. He agrees and notes that many traders do not want to sell short for this reason.
Jack explains the true purpose of Bitcoin (BSV); be a peer-to-peer electronic payment system. He gives David a brief history of Bitcoin: its volatile price history, Satoshi’s demise, developers hijacking Bitcoin, BCH and BSV splits, and more. He then explains that he thinks BTC is a bubble similar to the South Seas bubble of 1720.
“It’s just something you hold onto and hope some jerk pays more for,” Jack says.
He then goes on to explain how all the money made in the digital currency bubble enables the naked shorting of BSV. Since it’s one that many others in the industry see as a threat, that’s exactly what’s happening. As a former short seller, Jack says he thought he’d seen it all, but saw some seriously clever and underhanded attacks on BSV and Dr. Wright.
How will it all end? Jack thinks there will be such good things built on BSV that owning it will be inevitable. Eventually, the naked shorts will be caught.
On BSV today and tomorrow
Jack points out that BSV has more transactions than Ethereum every day this year, except for one. He points out that people think BSV is not successful because the price is removed, but when you look at actual usage and usefulness, BSV is ahead of the pack.
“We’re pretty much in the first inning of companies using ‘cryptocurrency’ to build apps…” says Jack. He thinks the adoption of BSV will be a hockey stick like many other tech trends do. Comparing BSV to Amazon, a company he’s seen grow since the days of Dot Com, he thinks we’re in the very early stages of something that’s changing the world.
David asks Jack to clarify a few things about BSV. He understands how it is technically superior to blockchains like Ethereum but wants to know more about the fork and what exactly BSV is. Jack tells him the story of Bitcoin forks and what it means (a leadership split). He explains how when the split happened, Bitcoin Cash wanted to keep the original concept of Bitcoin while BTC changed the protocol and turned it into something that is totally different in purpose and ultimately won’t work. from a technological point of view.
“BTC is going to zero,” says Jack. He also feels the same about Ethereum. Looking at the Dot Coms, he compares Ethereum and other altcoins to AOL. He says big investors were throwing money at these companies which ultimately yielded nothing. He compares BSV to Google; a venture that few saw coming at the time.
Jack explains his app SLictionary, which stands for self-learning dictionary. It is based on micropayments instead of advertisements. It costs about a penny to look up a word, but the definitions will be entertaining and potentially written by real experts.
Explaining SLictionary in more detail, Jack asks David to imagine reading a definition of Bitcoin written by Satoshi himself or a definition of the word skateboard written by Tony Hawk. Once the user chooses the best definition and clicks the light bulb icon, the author receives 70% of the penny the user pays. It also explains the concept of word bounties in SLictionary. You can fund a contest to write the best definition of a word and win a piece of those definitions in the long run.
In conclusion, Jack says that new digital currency and blockchain users today do not need to understand the deep technical plumbing of each blockchain. He encourages them to simply use the different apps and find out which one is best by experience.
Watch: John “Jack” Pitts on More Than Money with Patrick Thompson
New to Bitcoin? Discover CoinGeek bitcoin for beginners section, the ultimate resource guide to learn more about Bitcoin – as originally envisioned by Satoshi Nakamoto – and blockchain.