 Hey, I'm glad to be here I am concerned about any form of centralization and I would certainly like to see less centralization But that doesn't necessarily mean it's a problem The centralization in mining that we have today in China is the result of a very specific technology adoption curve that goes from CPU GPU FPGA ASIC Over a period of four years with each change in architecture offering a 10,000 increase in performance Which means that all of the equipment is obsolete within two to three months which requires massive capital access to chip factories directly as Directly as possible it means that selling chips to others doesn't make economic sense because if you keep them and mine them for two Three months until they're obsolete you win more than if you sell them and it means that of course access to cheap electricity Makes a huge advantage all of these factors together have created an enormously fast curve, but also centralization primarily in in China and yet We reached 60 nanometer fabrication, which means that the days of 10,000 performance Increases and two to three month obsolescence are over News law is the fastest technological law we've had Except that compared to Bitcoin CPU to ASICs. It's slow It's five thousand times too slow And so over the next two years we will not see a 10,000 time improvement We will see a two times improvement and that's really slow And that means that instead of the equipment being obsolete in three months It will now have a shelf life of two years and that means that having chips and mining with them instead of selling them Is no longer an advantage Because you have all of the risks of warehouses and operations and government interference of electricity prices Whereas if you sell the chips you can make a lot less risky money so What led to centralization of mining though all of those parameters no longer exists Mining changed about six months ago when we reach 16 nanometer The problem is we haven't seen that it's going to take about a year and a half before you see the ripple effect throughout that Industry and the halving is going to be very important, but I don't think the centralization is going to last The centralization was an artifact of performance increases that no longer exists of limited shelf life that no longer exists of advantages of centralization that now become Risks of centralizations because if you put a hundred thousand miners in a warehouse and you lose power for two days Your entire profitability is wiped out for the month But if you put a hundred thousand miners in a hundred thousand kitchens, and you use them to toast your bread or Cook your sausage as Sven showed me the photos today He cooked hot dogs on an ant S7 miner that was kind of cool Then you have the advantages of the centralization because if power goes off in one kitchen It doesn't affect anybody and your profitability doesn't depend on anything So all of the things that made Chinese centralization happen are now unmade I Also want to make another point if mining centralization had happened in Sweden a lot of people would be a lot less concerned And that's not just because the Chinese government is a threat to Bitcoin Because if you think about it the people who are doing mining in China are directly Opposing their governments by doing this. They're taking enormous risks They are entrepreneurs of the finest capitalist attitudes who should be applauded with incredible engineering and operational skills They're not their government and will resist and fight hard to maintain independence We should applaud that not fear it and somehow I think if they were Swedish We'd be less concerned. So there is an element of racism in this. There is an element of xenophobia There is an element of stereotyping an entire race, and I think that's not that's wrong