Cryptopia Bitcoin Blockchains And The Future Of The Internet

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00:00:00Transcription by CastingWords

00:00:30Thanks Peter

00:00:31Five years ago, I made a film about the history of money, banking and Bitcoin

00:00:37Buckle up, we said, it's going to be a bumpy ride

00:00:40And now, some of the big brains and big egos who championed cryptocurrency

00:00:45Claim they are building a crypto utopia

00:00:48Magical things will happen

00:00:50With something called blockchain technology

00:00:53And it just might change your life

00:00:55And they really could compete with, if not even take down the Facebooks

00:00:59And the Googles and the Amazons

00:01:01My name is Torsten Hoffmann

00:01:03And I'm going to put some of these claims to the test

00:01:06Some critics say, you kind of hurt the community

00:01:09What's your response to that?

00:01:11This innovation has enabled a lot of criminals and scammers

00:01:13But basically looking at it now, you lie to us

00:01:16Forget all the hype

00:01:18We'll explore the true potential of this new invention

00:01:21See who is already using it

00:01:24Making it really easy and simple for people to own a piece of a solar farm or a wind farm

00:01:30And go deep into a secret bunker that holds billions in Bitcoin

00:01:36And we cannot talk too much about it

00:01:40Because it's pretty secret what is down there, right?

00:01:44If Bitcoin succeeds, it will be at least a million dollars per coin

00:01:48We'll learn lessons from the past and meet those building the future

00:01:52But there are those who want to kill it

00:01:55Join with me in introducing a bill to outlaw cryptocurrency

00:02:00So that we nip this in the bud

00:02:02Control it

00:02:04Next year, people are going to start seeing that we have hundreds of patents

00:02:07And everything changes

00:02:09Or change the world with it

00:02:11Welcome to Ground Zero

00:02:14In the battle for the future of the internet

00:02:17Weapon 3.0

00:02:18They wanted a science fiction dream

00:02:21What they actually did was build a forthcoming disaster

00:02:24A lot of people were not willing to learn

00:02:26And were not willing to admit they were wrong

00:02:28They're idiots

00:02:29Why is this fraud allowed to speak at this conference?

00:02:32Stop telling me that I have no clues

00:02:34That's just why

00:02:35If you don't support free speech, you don't support Bitcoin

00:02:38You're an enemy of Bitcoin

00:02:39This is bigger than the internet

00:02:43The Iron Age

00:02:44The Renaissance

00:02:45The Industrial Revolution

00:02:47This affects the entire world

00:02:50For years and years, I've been researching blockchain technology

00:03:11Cryptocurrencies

00:03:12The market booms and busts

00:03:14And many have asked me to explain Bitcoin to them

00:03:16But I think this is why it's so difficult

00:03:19Cryptocurrencies

00:03:20Everything you don't understand about money

00:03:22Combined with everything you don't understand about computers

00:03:25Okay, let's start slowly

00:03:28With the basics of money and its creation

00:03:31The total value of all the world's money

00:03:34Is about $120 trillion

00:03:36What you probably didn't know

00:03:39Is that each new dollar

00:03:40Is created by governments

00:03:42And banks

00:03:43As debt

00:03:43Which needs to be paid back by someone in the future

00:03:46With interest

00:03:47That's why there isn't enough money in the world

00:03:50To repay all that debt

00:03:51And there never will be

00:03:53Oh, and

00:03:54Almost all of the world's money is already digital

00:03:57Just entries in a ledger

00:03:58Usually managed by a bank

00:04:00Only a small portion exists as physical currency

00:04:04Like cash or coins

00:04:05Think of it this way

00:04:06Your employer deposits $1,000 into your bank account

00:04:10Then you pay $200 in taxes

00:04:13$500 for rent

00:04:15$200 for bills and shopping

00:04:17And so forth

00:04:18Whether you use credit cards

00:04:20Debit cards

00:04:21PayPal

00:04:21Or bank transfers

00:04:22They're all just pluses and minuses

00:04:25In different digital ledgers

00:04:26That's why there's almost no need

00:04:28For physical money in our daily lives

00:04:30During the financial crisis in 2008

00:04:33A mysterious figure called Satoshi Nakamoto

00:04:35Published this nine-page white paper

00:04:37It said

00:04:38With Bitcoin's open-source software

00:04:40We can create our own money

00:04:42Without banks or governments

00:04:43This new nerd money

00:04:50Called cryptocurrency

00:04:51Is created and stored in computers

00:04:53And before long

00:04:54There was a growing fan club

00:04:56Mostly guys like Roger Weir

00:04:58Today he's a polarizing figure

00:05:01But back then

00:05:02He gave away thousands of coins

00:05:04To kickstart the movement

00:05:05And they all called him

00:05:06Bitcoin Jesus

00:05:07I think that for many years

00:05:10He brought more people to Bitcoin

00:05:12Than anyone else

00:05:13And we will forever be grateful

00:05:15To him for doing that

00:05:16When I was a kid

00:05:18I was reading all these science fiction books

00:05:20They were talking about

00:05:21How the world is going to be

00:05:23When we have this like

00:05:24Anonymous digital cash

00:05:26That people can use on the internet

00:05:27That's not controllable by anybody

00:05:28And then when Bitcoin came along

00:05:30It was like

00:05:32Wow

00:05:32The science fiction money

00:05:33That I had been reading about

00:05:34As a kid

00:05:35Is finally here

00:05:36So I got so excited about it

00:05:38I heard about it

00:05:38At about 10 in the morning

00:05:39And I was planning to go to work

00:05:41That day

00:05:42But I didn't

00:05:42I stayed home the entire day

00:05:43Reading about it

00:05:44Didn't leave us

00:05:45Stayed up all night

00:05:46That night reading about it

00:05:47Stayed up all night

00:05:48The next night

00:05:49He went deep down that rabbit hole

00:05:51To the point of physical exhaustion

00:05:53The hospital site

00:05:54I called up a friend of mine

00:05:55I said

00:05:55Please help me

00:05:56I'm so sick

00:05:57Can you bring me to the hospital?

00:05:58Yeah

00:05:58Roger got bit bad

00:05:59By the Bitcoin bug

00:06:00Because it's truly

00:06:02One of the most exciting inventions

00:06:04Ever in the entire history of humankind

00:06:06But how does it work?

00:06:09When my friends ask me to explain

00:06:11Well I often start with this analogy

00:06:13Imagine a bank vault

00:06:15Where you have a safety deposit box

00:06:17Your key opens one of the boxes

00:06:20Where you can securely store physical valuables

00:06:23Like gold coins

00:06:24In Bitcoin

00:06:26There are digital keys

00:06:27Think of them as very long passwords

00:06:30Your private key gives you access to a wallet

00:06:33Which unlocks billions of unique Bitcoin addresses

00:06:36Each one is a virtual safety deposit box

00:06:39That only you can open with your key

00:06:41And there are more addresses in this virtual vault

00:06:44Than atoms in the universe

00:06:46The doors to these boxes are transparent

00:06:49You can see inside them

00:06:51Here's one with digital money

00:06:530.21 bitcoins

00:06:54Sending them from one box to another

00:06:57Is what's called a Bitcoin transaction

00:06:58We'll explain that later

00:07:00But for now

00:07:02Just remember that these digital coins

00:07:04Can only exist inside these transparent address boxes

00:07:07Can't be copied

00:07:08And can't ever leave the vault

00:07:10And this vault is owned by no single entity

00:07:14You don't need permission from a government

00:07:17A bank

00:07:18Or a corporation

00:07:19To use it

00:07:20For most early adopters of Bitcoin

00:07:35It was all about global peer-to-peer electronic cash

00:07:38Room 77 in Berlin

00:07:41Was one of the very first businesses

00:07:43To accept bitcoins as payment for physical things

00:07:46Beers and burgers

00:07:48Back in 2011

00:07:50There were no mobile wallets

00:07:51Right?

00:07:52So you had to go there

00:07:53Bring your laptop

00:07:53Type

00:07:54This long address

00:07:56Risk losing the money

00:07:58If you didn't type it correctly

00:08:00So the first guy who built a mobile wallet

00:08:02Was some guy in Berlin

00:08:03Who built it

00:08:04In order to buy his beer

00:08:06With his phone

00:08:07Instead of his computer

00:08:08Credit cards are an old technology

00:08:31And actually pretty complex

00:08:33And your payment details

00:08:34Are shared with many middlemen

00:08:36Each of these parties

00:08:37Are also taking a cut of the action

00:08:39Which is built into the price

00:08:41Of nearly everything you buy

00:08:42If you purchase something internationally

00:08:45Double the number of middlemen

00:08:47And triple the fees

00:08:48Credit cards handle almost

00:08:5020 trillion dollars of transactions per year

00:08:53Early Bitcoin adopters

00:08:57Like Room 77

00:08:58Avoided paying credit card fees

00:09:00But Jörg's real beef

00:09:02Was with the bankers

00:09:03Who collect them

00:09:04Was hast du für ein Problem mit Banken?

00:09:07Das Problem was ich mit Banken hab

00:09:08Ist dass wir es in unserer Gesellschaft

00:09:10Geschafft haben mit den Banken

00:09:11Eine unverhaftbare Kaste

00:09:13Eine nicht ins Gefängnis steckbare

00:09:16Verbrecher-Syndikate aufzubauen

00:09:20Die too big to fail

00:09:21Too big to jail

00:09:22Und HSBC ist ein großartiges Beispiel

00:09:32Mit zehntausendfacher Beihilfe zum Mord

00:09:35Da musste nicht mal jemand vor Gericht gehen

00:09:45Weil der oberste Staatsanwalt der USA

00:09:47Klargestellt hat

00:09:49Können wir nicht machen

00:09:49Dann bricht die Wirtschaft zusammen

00:09:50Collapsing economies

00:09:56Murder

00:09:57I didn't sign up for this

00:09:58Let me get a drink

00:10:00Well actually

00:10:01I need to buy my German crew

00:10:03Some hot Glühwein

00:10:03And explain

00:10:04Why they won't get paid

00:10:05Until after Christmas

00:10:06You see

00:10:08Transferring money

00:10:09From Australia

00:10:09Where I live

00:10:10To Germany

00:10:11Can take several days

00:10:12And it will cost 30 dollars

00:10:14Plus exchange fees

00:10:15Just for updating numbers

00:10:17In digital ledgers

00:10:25After all

00:10:26It's just moving data

00:10:27I can send a picture

00:10:28Or video

00:10:29To anyone on the planet

00:10:30Almost instantly

00:10:31For free

00:10:33We live in the age of the internet

00:10:34But the banks won't send the data

00:10:36After 5 pm

00:10:37Or on a weekend

00:10:38That doesn't make any sense

00:10:42So what if those slow and expensive middlemen

00:10:45With their multiple ledgers

00:10:47Could be replaced by a giant database

00:10:49Synchronized over the internet

00:10:51That's the big idea behind Bitcoin

00:10:53And it's run by a decentralized global network

00:10:56Of powerful mining computers

00:10:57And regular laptops

00:10:59Here's how it works

00:11:04When I pay my cameraman

00:11:07What's really happening

00:11:08Is that I use my key

00:11:09To open my wallet

00:11:10And then instruct the network

00:11:12To send Bitcoins to his address

00:11:14Most Bitcoin apps

00:11:17Use QR codes

00:11:19To identify an address

00:11:20You scan it

00:11:21Then swipe to use your key

00:11:22And approve the transaction

00:11:24This information is shared

00:11:26Throughout the global network

00:11:27Within seconds

00:11:28Every 10 minutes or so

00:11:31One miner

00:11:33Using a tremendous amount of energy

00:11:35Beats all the others

00:11:36In a contest to solve

00:11:37A very difficult math problem

00:11:39That miner is authorized

00:11:41To arrange the most recent transactions

00:11:43Into a structured block

00:11:44And is rewarded in Bitcoins

00:11:46For this work

00:11:47All of the data contained

00:11:49Inside each block

00:11:50Is represented by a checksum

00:11:51The miner now adds the new block

00:11:54To the previous one

00:11:55That's why it's called the blockchain

00:11:56Now the ledger will be updated globally

00:11:59The checksums of the previous block

00:12:02Match the beginning of the new one

00:12:04Which are baked together forever

00:12:06It's impossible to tinker with the data

00:12:09Inside the block

00:12:09Without changing the checksums

00:12:11And breaking the chain

00:12:12This immutability is the first rule of Bitcoin

00:12:21It means no one can ever change

00:12:23What was once recorded in the blockchain

00:12:25Or spend the same coin twice

00:12:27That's also called censorship resistance

00:12:29And it's critical to Bitcoin

00:12:31Being used as real money

00:12:33Award-winning journalist Laura Shin

00:12:39Tells me a story about women bloggers

00:12:41In Afghanistan being paid in Bitcoin

00:12:43She told me that one of the women

00:12:45Had an abusive husband

00:12:47And saved up her Bitcoins

00:12:48And eventually was able to divorce him

00:12:51Because she was able to control her money

00:12:54When she earned the Bitcoins

00:12:55In my first film

00:12:57The early adopter said

00:12:58That this kind of financial freedom

00:13:00For everyone

00:13:00Was just around the corner

00:13:02World's most populous network

00:13:05Is adopting Bitcoin

00:13:07That's the internet

00:13:08The world's largest economy

00:13:10Is adopting Bitcoin

00:13:11That's the internet

00:13:13We have transcended borders

00:13:15It's totally failed as electronic cash

00:13:17David Gerard says

00:13:19It has unbanked the banked

00:13:21More than it has banked the unbanked

00:13:23He's an outspoken critic

00:13:24Of this technology

00:13:25It's not very good

00:13:27As a payment system

00:13:28There's a small payment use case

00:13:30If you want to trade in things

00:13:33That the government

00:13:34Doesn't want you to trade in

00:13:35That's David's polite way

00:13:37Of saying illegal stuff

00:13:38In 2011

00:13:40Most of my partner colleagues

00:13:42Were saying three things

00:13:43So without the drugs

00:13:44Pornography

00:13:45Arms sales

00:13:46The Silk Road

00:13:54The Silk Road was a black market

00:13:55On the dark web

00:13:55Where buyers and sellers

00:13:57Used Bitcoins

00:13:57To fly under the radar

00:13:59Of the authorities

00:14:00It had one million users

00:14:02Until the FBI showed up

00:14:04And shot it down

00:14:05They caught this guy

00:14:07For running it

00:14:08And confiscated the coins

00:14:09Held in escrow

00:14:10By snatching his computer

00:14:12And then

00:14:13They locked him away

00:14:14For life

00:14:14Seems like a problem

00:14:16Pretty straightforward case

00:14:17Of law enforcement

00:14:18Doing their job

00:14:19But in crypto

00:14:20Not everybody

00:14:21Sees it that way

00:14:22People have an absolute right

00:14:25To put whatever they want

00:14:27In their own bodies

00:14:28Because their bodies

00:14:28Belong to them

00:14:29That makes Ross Ulbricht

00:14:31And the users of the Silk Road

00:14:32Heroes

00:14:33Not criminal lawbreakers

00:14:34In a bad sense

00:14:35They were criminal lawbreakers

00:14:37In a good sense

00:14:37The same way that

00:14:38Harriet Tubman

00:14:39Or Rosa Parks

00:14:40Or Thomas Jefferson

00:14:41Or George Washington were

00:14:43No doubt

00:14:45Cryptocurrencies can be a tool

00:14:47For criminal activity

00:14:48But so are dollar bills

00:14:50Or the banking system

00:14:51And let's not forget

00:14:52The blockchain

00:14:54Is a public ledger

00:14:55It's actually been quite useful

00:14:58For uncovering crimes

00:15:00A former federal prosecutor

00:15:01Named Catherine Hahn

00:15:02She was the one

00:15:03Who discovered

00:15:04That there were

00:15:04A couple federal agents

00:15:05That were pilfering

00:15:08The bitcoins

00:15:09That the government

00:15:10Had obtained

00:15:11From the Silk Road case

00:15:11For their own gain

00:15:13And what was interesting

00:15:15Was she got a tip

00:15:16That there might be

00:15:17One agent

00:15:19That was doing this

00:15:20But from looking

00:15:21At the movements

00:15:22On the blockchain itself

00:15:23She realized

00:15:23That there were two people

00:15:24The prosecutor

00:15:27Could see those bitcoins

00:15:28Being moved

00:15:29And when the dirty cops

00:15:30Tried to sell them

00:15:31For dollars

00:15:32They got busted

00:15:33But what makes bitcoins

00:15:41Worth stealing

00:15:42Why do they have value

00:15:43At all?

00:15:45Let's go back

00:15:46To where bitcoins

00:15:47Are stored

00:15:47In transparent

00:15:48Digital deposit boxes

00:15:50Protected by

00:15:51Strong cryptography

00:15:52They can never be copied

00:15:54Or leave the vault

00:15:55Because any transaction

00:15:57Of any bitcoin

00:15:58Down to a

00:15:59100 millionth fraction

00:16:00Is recorded

00:16:01In the blockchain

00:16:02For eternity

00:16:03This synchronized

00:16:05Global ledger

00:16:05Is shared among

00:16:06Thousands of computers

00:16:07Worldwide

00:16:08That's why it can't

00:16:09Be compromised

00:16:10Or altered

00:16:10Think about that

00:16:12We can make an infinite number

00:16:14Of perfect digital copies

00:16:15Of a movie

00:16:16A song

00:16:17Any file

00:16:17But for the first time

00:16:19In history

00:16:19This distributed record keeping

00:16:21Allows us to have

00:16:22A truly unique

00:16:23And fungible

00:16:24Digital object

00:16:25That is also scarce

00:16:27If you could count

00:16:29If you could count all of these

00:16:29Virtual coins

00:16:30You'd find about

00:16:3118 million of them today

00:16:33The mining reward

00:16:35Is the only way

00:16:35New coins are created

00:16:36In the first years of bitcoin

00:16:40Miners competed for

00:16:4250 bitcoins

00:16:43Every 10 minutes

00:16:43Then

00:16:45Their reward for processing

00:16:46Transactions

00:16:47Dropped to

00:16:4725 bitcoins

00:16:48Then

00:16:4912.5

00:16:50And then half

00:16:52Again and again

00:16:52Every four years

00:16:54It's good old-fashioned

00:16:56Supply and demand

00:16:57If investors

00:16:58Or users of bitcoin

00:17:00Create a higher demand

00:17:01Than this decreasing supply

00:17:02The price will go up

00:17:04When the cap of

00:17:0621 million is reached

00:17:07The protocol stops

00:17:08The network

00:17:09From creating any more

00:17:10It's the opposite

00:17:11Of our traditional

00:17:12Money supply

00:17:13Which keeps

00:17:14Growing and growing

00:17:15An unlimited amount

00:17:25Of dollars

00:17:26Versus a very limited

00:17:27Supply of bitcoins

00:17:28You do the math

00:17:29If you use euros

00:17:32Or dollars

00:17:33You might not care

00:17:33About a little inflation

00:17:34Per year

00:17:35But if your currency

00:17:36Isn't stable

00:17:36You might be a

00:17:37Trillionaire in paper

00:17:38And be dead broke

00:17:39I grew up in Patagonia

00:17:46In the southern part

00:17:47Of Argentina

00:17:47My parents are

00:17:48Ship ranchers there

00:17:49And I remember

00:17:50Growing up

00:17:51In my childhood

00:17:52I saw my parents

00:17:53Lose everything

00:17:53Three times

00:17:54First because of

00:17:55A huge devaluation

00:17:57Then because of

00:17:58Hyperinflation

00:17:59And the last time

00:18:00Because the government

00:18:00Confiscated all

00:18:01Bank deposits

00:18:03I think that

00:18:04Today

00:18:05There are

00:18:07Billions of people

00:18:08At least 4 billion

00:18:09People

00:18:09Who would be a lot

00:18:10Better off

00:18:11By having access

00:18:12To a form of money

00:18:13That is non-political

00:18:15And more democratic

00:18:16We think of finance

00:18:25We think of banking

00:18:26We think of money

00:18:27In terms of the

00:18:29Experience and perspective

00:18:30Of a western European

00:18:31Or developed nation

00:18:33Person

00:18:33And that

00:18:35Is really just

00:18:36A billion and a half

00:18:37People

00:18:37Who have

00:18:38A very

00:18:39Privileged

00:18:40Financial life

00:18:40What about

00:18:41The other 6 billion

00:18:42Every single country

00:18:44That is free

00:18:45Has

00:18:46Essentially

00:18:48A legal status

00:18:49For cryptocurrencies

00:18:50That is very open

00:18:51And permissive

00:18:52And every single country

00:18:53That is unfree

00:18:54Has restrictive

00:18:56Or banned

00:18:57Cryptocurrency status

00:18:58This is the Berlin wall

00:19:18Still a powerful symbol

00:19:19Of a government

00:19:20Trying to control

00:19:22Its citizens

00:19:23But this is what happens

00:19:25When people

00:19:26Want to be free

00:19:28The very first open crypto war

00:19:30Is playing out in Venezuela

00:19:32Where the local currency

00:19:33Loses value

00:19:34Every hour

00:19:35Due to hyperinflation

00:19:36A lot of people

00:19:38In Venezuela

00:19:38Are trying to mine

00:19:39Cryptocurrencies

00:19:40And the government

00:19:41Views this as a threat

00:19:42Obviously

00:19:43Because they're trying

00:19:44To keep the boulevard

00:19:46Propped up

00:19:47The government

00:19:47Actually provides electricity

00:19:48To a lot of people

00:19:49And if they perceive

00:19:51That your electricity

00:19:52Usage has gone up

00:19:53They will come and check

00:19:55If you have mining equipment

00:19:56In your house

00:19:57And they will confiscate it

00:19:59If they find it

00:20:00And that brings us

00:20:01To the big question

00:20:02Can governments

00:20:03Or banks

00:20:03Ban Bitcoin

00:20:04So the title is

00:20:06Jamie Dimon

00:20:07Here's why you're wrong

00:20:07About Bitcoin

00:20:08Dimon runs

00:20:10JPMorgan Chase

00:20:11One of the largest banks

00:20:12In the world

00:20:13That moves 6 trillion dollars

00:20:14Every single day

00:20:15Oh you said of Bitcoin

00:20:17Eventually it will be closed

00:20:18And then I said

00:20:20To anyone who knows

00:20:21Anything about the technology

00:20:22This is an incredibly

00:20:23Absurd statement

00:20:24I even said

00:20:26It was a little bit hilarious

00:20:27Because I did find it

00:20:29Kind of funny

00:20:29The idea that he thought

00:20:30You could close Bitcoin

00:20:32You'd have to

00:20:33Shut down the internet

00:20:35Which also doesn't make sense

00:20:37I could understand

00:20:38If he wanted Bitcoin shut down

00:20:39Or hoped it was a fraud

00:20:40I mean if I were you

00:20:41And if I really understood

00:20:42The disruption crypto assets

00:20:44Could bring to financial services

00:20:45I'd be very scared

00:20:46And I think whatever

00:20:48Jamie Dimon says

00:20:49Or thinks about Bitcoin

00:20:50Is as relevant

00:20:51As whatever the postmaster

00:20:53General thought

00:20:54Or said about email

00:20:55Who cares?

00:20:57Then I wrote

00:20:58Sincerely, Laura Shin

00:20:59But some politicians

00:21:02Still think

00:21:03They can stop

00:21:03Open source software

00:21:04I look for colleagues

00:21:07To join with me

00:21:08In introducing

00:21:09A bill

00:21:10To outlaw cryptocurrency

00:21:12Purchases

00:21:13By Americans

00:21:14So that we nip this

00:21:16In the bud

00:21:16In part because

00:21:18Not an awful lot

00:21:20Of our international power

00:21:22Comes from the fact

00:21:23That the dollar

00:21:24Is the standard unit

00:21:25Of international finance

00:21:27And transactions

00:21:28Clearing through the New York Fed

00:21:31Is critical

00:21:32For major oil

00:21:33And other transactions

00:21:34And it is the announced purpose

00:21:37Of the supporters

00:21:38Of cryptocurrency

00:21:38To take that power

00:21:40Away from us

00:21:41Cryptocurrency represents

00:21:44A litmus test

00:21:45For governments

00:21:45It reveals

00:21:47How much your government

00:21:49Believes

00:21:50In the fundamental freedoms

00:21:53And human rights

00:21:55Because if they

00:21:57Don't trust

00:21:58Their own citizens

00:21:58To have control

00:22:00Over their own money

00:22:00That says a lot

00:22:02About the governments

00:22:02There's very little

00:22:03About cryptocurrency

00:22:04You see

00:22:06The reason why

00:22:07Some governments

00:22:08And most banks

00:22:08Are threatened

00:22:09By this technology

00:22:10Is simple

00:22:11Your private key

00:22:12And your wallet

00:22:13Can replace

00:22:14Your bank account

00:22:15The network

00:22:16Is run by software

00:22:17And its currency

00:22:18Is made and maintained

00:22:19By computing power

00:22:20And electricity

00:22:21It can't be manipulated

00:22:23By central bankers

00:22:24Wall street lobbyists

00:22:25Or politicians

00:22:26But with new freedom

00:22:28Comes new responsibility

00:22:29Simple rule

00:22:31If you control the keys

00:22:33It's your bitcoin

00:22:34If you don't control the keys

00:22:36It's not your bitcoin

00:22:37Your keys

00:22:38Your bitcoin

00:22:39Not your keys

00:22:40Not your bitcoin

00:22:41Your keys

00:22:42Your bitcoin

00:22:43Not your keys

00:22:44Not your bitcoin

00:22:45Got that?

00:22:47If you lose your key

00:22:48You will never be able

00:22:49To access your coins again

00:22:51And if someone

00:22:52Hacks your computer

00:22:53Where you store those passwords

00:22:54Your coins will be stolen

00:22:56In a second

00:22:56And remember

00:22:58How Wences's family

00:22:59Had their money stolen

00:23:00By their own government?

00:23:02Well, maybe that's why

00:23:03He built the Fort Knox

00:23:04Of bitcoin security

00:23:06Zappo

00:23:07Most of our 7 million customers

00:23:09Are in emerging markets

00:23:10In countries

00:23:11Where there's problems

00:23:13With the currency

00:23:14We have explosions in activity

00:23:15Like Venezuela

00:23:16Right now

00:23:17Or Turkey

00:23:17And we develop

00:23:18This system of vaults

00:23:20Where we have

00:23:21Five private keys

00:23:22For each one

00:23:23Of our bitcoin addresses

00:23:24We keep those

00:23:26Private keys

00:23:27In an offline server

00:23:29That has never been online

00:23:30Will never be online

00:23:31It's inside a vault

00:23:32The vault is inside

00:23:33A bunker

00:23:34Usually deep underground

00:23:36Our main one is in Switzerland

00:23:37In a decommissioned military bunker

00:23:40I just had to see it for myself

00:23:42Even though it took months

00:23:44For us to get cleared

00:23:45For a tour

00:23:45We were met by Christoph Oschwald

00:24:02A former military commander

00:24:03Who runs the place

00:24:04And a representative

00:24:05From Zappo

00:24:06Christoph said

00:24:07The guards would rather shoot us

00:24:09Than show us around

00:24:10I hope he was kidding

00:24:13They need to bring in

00:24:16The material

00:24:17To the other side

00:24:19Of the personal lock

00:24:20First up

00:24:22One more check of our IDs

00:24:24A pat down for weapons

00:24:25Or any other monkey business

00:24:27And gear inspection

00:24:28Even the boss was searched

00:24:32It took nearly an hour

00:24:35To get my team through security

00:24:36But it was worth it

00:24:37No other film crew

00:24:39Has been allowed access

00:24:40We are the largest

00:24:42Custodian of Bitcoin

00:24:43In the world

00:24:44Because a lot of

00:24:45The largest holders

00:24:46In the world

00:24:46Use us for security

00:24:48Rumor has it

00:24:50That 10% of all Bitcoins

00:24:52Are stored here

00:24:52And in their four other

00:24:54Secret locations

00:24:55Unfortunately

00:24:58I can't confirm

00:24:59Any of those numbers

00:25:00From the mountain

00:25:03We are getting

00:25:04A lot of benefits

00:25:06Right

00:25:07Earthquake proof

00:25:08Flooding proof

00:25:10But on the other side

00:25:12You are facing

00:25:13A lot of additional cost

00:25:14Like maintaining

00:25:16Seven independent

00:25:17Backup power supplies

00:25:19The labyrinth of tunnels

00:25:24Deep into the mountain

00:25:25Is interrupted

00:25:26By nuclear-grade doors

00:25:28Good?

00:25:31Yeah

00:25:31Good

00:25:32It's a level of security

00:25:40Applied to all of the data

00:25:41Christoph protects here

00:25:42Not just for Zappo

00:25:43And we cannot talk too much

00:25:46About it

00:25:47Because it's pretty secret

00:25:49What is down there

00:25:50Right

00:25:50Are we allowed to film there?

00:25:52No

00:25:53There were doors that remained shut

00:25:56And security measures

00:25:57We weren't allowed to see

00:25:59And some of those checks

00:26:01May be biometric

00:26:02Including the eye

00:26:03And a finger

00:26:04Print scan

00:26:06And the fingerprint scanner

00:26:07Also makes sure

00:26:08That you are alive

00:26:09So that you didn't cut

00:26:10Someone's finger

00:26:11And you're just using it

00:26:12To open a gate

00:26:13Yeah

00:26:13So you must have a pulse

00:26:14Don't touch the rats

00:26:24These aren't Zappo's actual servers

00:26:29But if you've ever wondered

00:26:31What cryptocurrency thieves dream about

00:26:33It's sitting somewhere down here

00:26:35Unplugged from the internet

00:26:36But there is absolutely no way

00:26:39Zero way

00:26:40To attack the data

00:26:42Which is on the cold storage side

00:26:44But here's my question

00:26:45Why do I need the cold offline servers

00:26:48To be inside a mountain?

00:26:50Can it be in my basement?

00:26:51While this server is in your basement

00:26:53It still can be stolen, right?

00:26:56So this is like money

00:26:58It is data

00:27:00Yes, it's fit and buy

00:27:01But it is money at the end

00:27:03And a lot of money

00:27:05And this is why this data center

00:27:07Here is more a bank

00:27:08Than a data center

00:27:10Okay, let's do a quick recap

00:27:14We now have billions of dollars

00:27:15Worth of data

00:27:16Secured in digital banks

00:27:17Deep inside secret military bunkers

00:27:19If you don't think Bitcoin

00:27:21Is already changing

00:27:22The world's concept of money

00:27:23You haven't been paying attention

00:27:25Remember Mervin?

00:27:28He used to be a senior executive

00:27:29At Deutsche Bank

00:27:30His colleagues once said

00:27:32Bitcoin was for lawbreakers

00:27:33And troublemakers

00:27:34He now runs a $100 million crypto fund

00:27:37Out of Malta

00:27:37Our research shows that

00:27:41The crypto markets

00:27:44Are going to probably be worth

00:27:46About $8.7 trillion

00:27:47In 2027

00:27:48Which is a 50x from today

00:27:51Exactly

00:27:52Most financial analysts say

00:28:00You better stick to your shares

00:28:01And bonds and dollars

00:28:02Bitcoin is dangerous nonsense

00:28:04Far too risky as investment

00:28:06To others

00:28:08Bitcoin is an escape hatch

00:28:09That will take them away from risk

00:28:11An insurance against a financial doomsday

00:28:13A way out of the debt crisis

00:28:15Negative interest rates

00:28:17Trade wars

00:28:18And economic downturn

00:28:19They say it's an anti-fragile asset

00:28:22Uncorrelated to financial markets

00:28:25So who's right here

00:28:26Well, every time I turn on the television

00:28:28It gets even more confusing

00:28:30Bitcoin's worth about

00:28:31A little bit under $200 billion today

00:28:33All the gold in the world

00:28:34Is worth $8 trillion

00:28:36And it could become the next gold

00:28:38In terms of cryptocurrencies

00:28:40Generally

00:28:41I can say almost with certainty

00:28:45That they will come to a bad ending

00:28:47But if Bitcoin is out there

00:28:49And gold is out there

00:28:51It can be a participant

00:28:52In bringing down the dollar

00:28:54I said it's the mother of all bubbles

00:28:56And it's also the biggest bubble

00:28:57In human history

00:28:59Do you think this is a currency

00:29:00A currency that's really going to work eventually?

00:29:03Well, I think it is working

00:29:04And there will be other currencies like it

00:29:07That may be even better

00:29:09Bitcoin is successful

00:29:11Only because of its potential

00:29:14For circumvention

00:29:15Lack of oversight

00:29:17So it seems to me

00:29:19It ought to be outlawed

00:29:20It doesn't serve

00:29:21Any socially useful function

00:29:23This film isn't investment advice

00:29:26But it strikes me

00:29:27That most of these TV shows

00:29:28Just want to stir a controversy

00:29:30They don't understand what's going on

00:29:32But they know

00:29:33That filling airtime

00:29:34With a controversial topic

00:29:35Will get them higher ratings

00:29:37So how about the general public?

00:29:40In America

00:29:41The younger generation

00:29:42Already starts to trust

00:29:43This new asset class

00:29:44And Wences says

00:29:45Bitcoin may reach

00:29:46A million dollars per coin

00:29:48I would say

00:29:50The biggest financial mistake

00:29:53You can make right now

00:29:54Is to own an amount of Bitcoin

00:29:55That you cannot afford to lose

00:29:57Because it's super risky

00:29:58And you may lose

00:29:59The second biggest financial mistake

00:30:01You can make

00:30:01Is not to own any

00:30:03Because

00:30:03You put 1% of your net worth

00:30:07In Bitcoin

00:30:08Most people can afford

00:30:10To lose 1% of their net worth

00:30:12And if I am right

00:30:13It's going to be more than

00:30:14100% of your net worth

00:30:16So with a non-material exposure

00:30:18You change your life

00:30:19Now

00:30:19What you would spend

00:30:20On a romantic weekend

00:30:22With your wife

00:30:22Say sorry

00:30:24We're not going to do that

00:30:25This weekend

00:30:25I'm going to just buy Bitcoin

00:30:27Consider it spent

00:30:28It disappeared

00:30:29Check in 7 years

00:30:31I either gave you bad advice

00:30:33And cost you a weekend

00:30:34Or I want a grand kid

00:30:36Called Wensito

00:30:37But what you fail to mention

00:30:41Is the currency

00:30:43The microtransaction

00:30:44All of that is irrelevant

00:30:45Right

00:30:46Meaning

00:30:47All of the cryptocurrencies

00:30:49Are way too volatile

00:30:50For anyone to take them seriously

00:30:52Hold on

00:30:54Let's go back to where we started

00:30:55Bitcoin was created

00:30:57As peer-to-peer electronic cash

00:30:58That was the killer app

00:30:59A payment directly

00:31:00From you to me

00:31:01From me to the coffee shop

00:31:03I have bought

00:31:05A bag of coffee

00:31:07For two Bitcoin

00:31:08In 2012

00:31:10Which today

00:31:12Cost me $12,000

00:31:14In today's money

00:31:15That is a deflationary effect

00:31:18As long as Bitcoin

00:31:19Keeps doing

00:31:20Sudden increases in prices

00:31:22That's going to stop

00:31:23Retail use

00:31:24In its tracks

00:31:25With Bitcoin

00:31:27You can send $1

00:31:27Or $1 million worth of value

00:31:29Anywhere in the world

00:31:30You can do it for free

00:31:32But basically

00:31:33Looking at it now

00:31:34You lie to us

00:31:35Yeah

00:31:36That's what they all

00:31:37Used to tell me

00:31:38Cheap

00:31:39Easy

00:31:39Fast

00:31:40Global

00:31:41Unstoppable

00:31:42I'm not done with you pal

00:31:45But I need to explain

00:31:46What happened here

00:31:46Every block

00:31:48Contains about

00:31:49One megabyte of data

00:31:50Much smaller

00:31:51Than a photo

00:31:52You post on Instagram

00:31:53That means

00:31:55Only a limited number

00:31:56Of transactions

00:31:56Can fit into each block

00:31:58If you want your payment

00:32:00To jump the line

00:32:00You can choose

00:32:01To pay a premium fee

00:32:02Or sit and wait

00:32:04At one point

00:32:05The blocks became so full

00:32:07That the transaction time

00:32:08Went to several hundred hours

00:32:10That's days

00:32:12And it was more expensive

00:32:14Than international wire services

00:32:15It got so bad

00:32:17That a Bitcoin conference

00:32:19Wouldn't take payment

00:32:20In Bitcoins

00:32:21And he's the guy

00:32:22Who promised me

00:32:23Moving money

00:32:23Fast and for free

00:32:24What went wrong?

00:32:26And that's a direct

00:32:28Intentional result

00:32:30Of Bitcoin Core's policies

00:32:31Of intentionally making it

00:32:32Slow

00:32:33Expensive

00:32:34And unreliable

00:32:35And Roger blames

00:32:36This guy

00:32:37For Bitcoin

00:32:37Not becoming

00:32:38A mainstream global currency

00:32:40There are no shortage

00:32:43Of conspiracy theories

00:32:44Marker

00:32:45Blockstream

00:32:47Was founded in 2014

00:32:48The original co-founders

00:32:51Are a lot of core developers

00:32:52Those are the software coders

00:32:54Who continued building Bitcoin

00:32:55After Satoshi vanished

00:32:57Roger thinks

00:32:58Those guys sabotaged

00:32:59The scaling of the network

00:33:00So Blockstream

00:33:01Could promote

00:33:02Its own software solutions

00:33:04Samson says

00:33:05Come on

00:33:05The blockchain

00:33:06Is already 200 gigabytes large

00:33:08And growing

00:33:09Every transaction made

00:33:11Has to go out

00:33:12To the whole network

00:33:12And every block

00:33:14That contains that transaction

00:33:15That is mined

00:33:16Has to also go out

00:33:17To the whole network

00:33:18And it has to be stored

00:33:19For eternity

00:33:20The argument

00:33:22More independent miners

00:33:24Will continue running Bitcoin

00:33:25And ensure decentralization

00:33:27If the blockchain

00:33:28Is kept small

00:33:29In his view

00:33:30This decentralization

00:33:32Is what makes Bitcoin valuable

00:33:33A store of value

00:33:35So holding Bitcoin

00:33:37Is also a use case

00:33:38And that store of value hypothesis

00:33:39I cannot get my head around

00:33:41It's the most

00:33:42Like nutty thing

00:33:44I've ever heard

00:33:45You know

00:33:45One philosophy

00:33:46Could be described

00:33:47As Bitcoin as digital gold

00:33:48And the other philosophy

00:33:50Could be described

00:33:50As Bitcoin as digital cash

00:33:52The other team said

00:33:54You guys have it

00:33:55The wrong way around

00:33:56First

00:33:57Bitcoin needs to be usable

00:33:58As a currency

00:33:59A medium of exchange

00:34:00Then maybe

00:34:01It will become stable

00:34:03And a store of value

00:34:04The solution is easy

00:34:07Just increase the size

00:34:09Of the blocks

00:34:09From one to two

00:34:10For eight megabytes

00:34:11So that more transactions

00:34:13Fit into them

00:34:13This will lower the fees

00:34:15And people will start

00:34:17Using Bitcoin

00:34:17As cash again

00:34:19The original title

00:34:20Of the Bitcoin

00:34:20White paper

00:34:21Is Bitcoin

00:34:22An electronic

00:34:22Peer-to-peer

00:34:23Electronic cash system

00:34:25But you know

00:34:26Satoshi's white paper

00:34:27Isn't the bible

00:34:28It's not a religion

00:34:29It's tough changes

00:34:30We evolve

00:34:31We might find out new things

00:34:33So why this fixation

00:34:35On that white paper

00:34:36Created ten years ago

00:34:39There isn't any fixation

00:34:40It's not the version

00:34:41Of Bitcoin

00:34:42That I got involved with

00:34:43And it's not the version

00:34:44Of Bitcoin

00:34:44That I want to support

00:34:45So Roger joined forces

00:34:47With a controversial

00:34:48Online gambling billionaire

00:34:49Bitmain

00:34:51A Chinese crypto mining company

00:34:52And this guy

00:34:54I'll do whatever the fuck

00:34:56I want

00:34:56With my money

00:34:58Okay

00:34:59Anyway

00:34:59They forced a software fork

00:35:01Which is a split

00:35:02Into two separate blockchains

00:35:04Every holder of Bitcoin

00:35:05Now also owned

00:35:07The same amount

00:35:08Of Bitcoin cash

00:35:09Roger had nothing

00:35:10To do with the creation

00:35:11Of Bitcoin cash

00:35:12Roger didn't know about it

00:35:14Until a few weeks

00:35:14Before it actually happened

00:35:15But still

00:35:16Bitcoin Jesus

00:35:17Had become Bitcoin Judas

00:35:19Every revolution

00:35:20Is followed by

00:35:21The counter revolution

00:35:22Which is usually a purge

00:35:24Of the original revolutionaries

00:35:25People

00:35:26Are very passionate

00:35:29About Bitcoin

00:35:30And

00:35:31That's why they

00:35:33Show a lot of emotion

00:35:34When you're part of a tribe

00:35:36You get very religious

00:35:37About your tribe

00:35:37Making the other tribe

00:35:39Almost your enemy

00:35:40It's very hard to

00:35:41To debate Roger

00:35:43Because a lot of

00:35:44What he's saying

00:35:45Is just his opinions

00:35:46And his emotions

00:35:47You cannot debate

00:35:48Someone's emotions

00:35:50And then they basically

00:35:51Diverted the entire

00:35:53Bitcoin project

00:35:53Into something

00:35:55That wasn't usable

00:35:56As peer-to-peer cash

00:35:57When he gave his talk

00:35:58I kind of knew

00:35:59That that whole

00:36:00Debate slash panel

00:36:01I kind of expected

00:36:02It was going to go off the rails

00:36:03But I didn't expect

00:36:04Killing babies

00:36:04So that means

00:36:05More babies

00:36:06Are dying

00:36:07In countries around the world

00:36:09Because they have

00:36:09Less economic freedom

00:36:11More people

00:36:12Are starving to death

00:36:13Because they have

00:36:14Less economic freedom

00:36:15People are literally

00:36:17Dying because of this

00:36:18I'm not exaggerating

00:36:19This is a life

00:36:20And death matter

00:36:21And remember

00:36:23That list of promises

00:36:24The early Bitcoiners

00:36:25Championed

00:36:26Cheap

00:36:26Easy

00:36:27Fast

00:36:28Unstoppable

00:36:29I forgot one

00:36:31If you don't support

00:36:32Free speech

00:36:33You don't support Bitcoin

00:36:34You're an enemy of Bitcoin

00:36:35Censorship shall not

00:36:37Be abided

00:36:38In fact I myself

00:36:39Have tried posting

00:36:40Just a direct quote

00:36:42From Satoshi Nakamoto

00:36:43The creator of Bitcoin

00:36:44I think Roger

00:36:45Complains a lot about

00:36:46Censorship on

00:36:47On Reddit

00:36:48But Reddit is just

00:36:49One of many

00:36:50Like platforms

00:36:51Word for word quote

00:36:52From Satoshi

00:36:53Without any additional

00:36:54Commentary for myself

00:36:55At all

00:36:56And I've had that

00:36:57Post deleted

00:36:57Even though I may not

00:36:59Agree with a lot of things

00:36:59That Roger Verde is doing now

00:37:01I do sympathize with him

00:37:02And his frustration

00:37:04With being censored

00:37:05They're literally censoring

00:37:06The words of the creator

00:37:07Of Bitcoin

00:37:08Ultimately it's just a forum

00:37:09That these guys set up

00:37:11To talk about Bitcoin

00:37:12And they can do

00:37:13Whatever they want with it

00:37:14Right

00:37:14When I first started

00:37:16Covering the space

00:37:17Everyone was united

00:37:18In their struggle

00:37:19Against the establishment

00:37:20Now the industry

00:37:21Has grown so much

00:37:22That there are competing

00:37:23Parties

00:37:24Propaganda machines

00:37:25Conspiracy theories

00:37:26Looks a lot like politics

00:37:28The biggest fight

00:37:30Within the Bitcoin ecosystem

00:37:31Is over at the moment

00:37:32Is who has the right

00:37:33To the name Bitcoin

00:37:34But at the end of the day

00:37:35I think the version

00:37:36Of Bitcoin described

00:37:37In the Bitcoin white paper

00:37:38Has the strongest claim

00:37:40To the name Bitcoin

00:37:41Than anything else

00:37:43And that's Bitcoin Cash

00:37:44Roger owns Bitcoin.com

00:37:46And he has every intention

00:37:47Of bringing Bitcoin Cash

00:37:48To the masses

00:37:49Even if it means

00:37:50That some people

00:37:51Coming to his website

00:37:52Think that they're buying Bitcoin

00:37:54But they're getting Bitcoin Cash

00:37:55I think it's fraudulent

00:37:58To say that

00:37:59And causing people

00:38:00To buy Bitcoin Cash

00:38:01When they actually

00:38:02Want to buy Bitcoin

00:38:03Also das ganze

00:38:04B-Cash-Ding

00:38:05Ist für mich

00:38:06Schlicht und einfach

00:38:07Ein Betrug

00:38:08Wir haben hier Kunden

00:38:09Die versehentlich

00:38:12Weil sie dachten

00:38:12Sie kaufen Bitcoin

00:38:14B-Cash gekauft haben

00:38:15Die brechen hier zusammen

00:38:16Hysterisch

00:38:18Wenn ich ihnen erkläre

00:38:19Dass sie gefälschte

00:38:19Bitcoins gekauft haben

00:38:21So Bitcoin Core fans

00:38:23Say Roger's hijacking

00:38:24The brand name

00:38:25And Bitcoin Cash

00:38:26Supporters claim

00:38:27That Blockstream

00:38:28Is hijacking

00:38:29Bitcoin's development

00:38:30I mean yeah

00:38:31It is a conflict of interest

00:38:32Because they're

00:38:34Developing this

00:38:35Open source protocol

00:38:36In a way where

00:38:37Their company

00:38:38Can benefit from it

00:38:40Everything we're doing

00:38:40Is open source

00:38:41So it's not like

00:38:44There's some secrecy

00:38:45Or anything

00:38:45You can see

00:38:46All the code

00:38:47That's committed

00:38:48And it does go

00:38:49Through this vetting process

00:38:50I mean they have

00:38:51Had influence

00:38:52I mean I wouldn't say

00:38:53It's not true

00:38:55But I don't think

00:38:56They have enough influence

00:38:58To actually corrupt

00:39:00Bitcoin

00:39:01We no longer have

00:39:02Anyone maintaining

00:39:03The project

00:39:03Just because

00:39:03We don't want that

00:39:04Potential conflict

00:39:06Of interest

00:39:07But in a way

00:39:08Now they've won

00:39:09The battle anyways

00:39:10So who won

00:39:11Bitcoin's first war

00:39:12Well

00:39:13Both parties

00:39:14Got their way

00:39:15After the split

00:39:16The market valued

00:39:17Bitcoins much higher

00:39:19And Bitcoin Cash

00:39:20Transaction fees

00:39:21Were much lower

00:39:22The benefit of the

00:39:24Scaling debate

00:39:25Or civil war

00:39:25Was Bitcoin

00:39:27Was battle tested

00:39:27Like a lot of

00:39:29Companies

00:39:29And a lot of

00:39:30Powerful people

00:39:30Tried very hard

00:39:32To try to change

00:39:33Bitcoin

00:39:33And they failed

00:39:35This thing

00:39:36That Satoshi Nakamoto

00:39:38Launched

00:39:38Is much more

00:39:40Resilient than

00:39:41Anyone even hoped

00:39:42I know

00:39:48I know

00:39:49You want to find out

00:39:49What any of this

00:39:50Has to do

00:39:51With this new

00:39:52Cryptopia

00:39:52A revolutionary

00:39:53Internet

00:39:53We'll get there

00:39:54I promise

00:39:55But first

00:39:55We need to go

00:39:56From Bitcoin's

00:39:57Original blockchain

00:39:58To hundreds

00:39:59Of blockchains

00:40:00Back in 2011

00:40:03When Charlie Lee

00:40:04Was a Google engineer

00:40:05He wanted a faster

00:40:06And lighter version

00:40:07Of Satoshi's

00:40:08Cryptocurrency

00:40:09And was one of

00:40:10The first to

00:40:11Experiment with

00:40:12The open source

00:40:12Software

00:40:13The actual coding

00:40:15In terms of

00:40:15The code differences

00:40:16Between Bitcoin

00:40:17And Litecoin

00:40:18Was actually

00:40:18Pretty trivial

00:40:19And what does

00:40:20That mean in time

00:40:21Like

00:40:21I would say

00:40:23Like four

00:40:24Or five hours

00:40:26Litecoin was positioned

00:40:27As silver

00:40:28To Bitcoin's gold

00:40:29And its network value

00:40:31Grew to billions

00:40:32Of dollars

00:40:32Some critics say

00:40:34Well you sold

00:40:34At the highest point

00:40:35And you kind of

00:40:36Hurt the community

00:40:37What's your response

00:40:38To that

00:40:38When I sold

00:40:39No one knew

00:40:40It was the highest point

00:40:41I didn't know

00:40:41It was going to be

00:40:42The highest point

00:40:42So everyone thought

00:40:43It was going to

00:40:43Keep going up

00:40:44In hindsight

00:40:45It was good timing

00:40:47Selling at the high

00:40:49But I'm still

00:40:50Focused full time

00:40:51On Litecoin adoption

00:40:52And working on Litecoin

00:40:53And Litecoin development

00:40:54So it's not like

00:40:55I sold and just quit

00:40:56Nobody gets to

00:40:59Kind of dictate

00:41:00How Bitcoin

00:41:01Improves

00:41:03Or grows

00:41:04Whereas with Litecoin

00:41:05I have a strong influence

00:41:08On the growth of Litecoin

00:41:09Which is good and bad

00:41:11It's kind of like

00:41:12The difference between

00:41:14A benevolent dictator

00:41:15Versus a democracy

00:41:18A benevolent dictator

00:41:20Is more efficient

00:41:21But you have to assume

00:41:22That the benevolent dictator

00:41:23Stays benevolent

00:41:24Let's put a pin in that

00:41:26Litecoin was one of the first

00:41:28Alternative cryptocurrencies

00:41:29Or altcoins

00:41:30Some of the early adopters

00:41:32Like Charlie

00:41:33Made fortunes

00:41:34Soon

00:41:35There were hundreds of coins

00:41:36Made by cryptographers

00:41:37Copycats

00:41:38And conmen

00:41:39There's a coin for bloggers

00:41:42A currency for online gamers

00:41:43One with anonymity

00:41:45And even one for banks

00:41:46But can this invention

00:41:48Unleash something

00:41:49Even more powerful

00:41:50Than digital currencies?

00:41:56Back in 2014

00:41:57I met the kid

00:41:58Who knew how to do it

00:41:59Hi, I'm Vitalik Booderen

00:42:01Co-founder of Bitcoin Magazine

00:42:03Founder of Ethereum

00:42:04And just general

00:42:05Bitcoin and cryptocurrency advocate

00:42:07Just 19 years old

00:42:09Vitalik was on a mission

00:42:10To make money programmable

00:42:12Vitalik is a very, very smart guy

00:42:18The thing about Vitalik is

00:42:20He was pushed away from Bitcoin

00:42:21Because he had gone to

00:42:23Bitcoin core developers

00:42:25And tried to build Ethereum

00:42:27On top of Bitcoin

00:42:28And they basically said

00:42:30Nope, not interested

00:42:31So he built a separate blockchain

00:42:33Called Ethereum

00:42:34With its own currency

00:42:36Called Ether

00:42:37The comparison might be

00:42:38Bitcoin is like a spreadsheet

00:42:40And Ethereum is like a spreadsheet

00:42:42With macros

00:42:43Using our analogy

00:42:46Ethereum allows you to store

00:42:47Cryptocurrency

00:42:48And computer code

00:42:49In the same secure box

00:42:51Here's how a smart contract

00:42:54Might work

00:42:55Let's say I bet Charlie

00:42:57That a Litecoin

00:42:58Will be worth

00:42:59$200

00:43:00On January 1st

00:43:01Of next year

00:43:02We each put an Ether

00:43:04Into a box

00:43:05Along with a smart contract

00:43:06A simple program

00:43:07That automatically checks

00:43:09The price of Litecoins

00:43:10On that future date

00:43:11If I'm right

00:43:12The money goes to me

00:43:13If I'm wrong

00:43:14It's sent to Charlie

00:43:15A smart contract

00:43:21Is neither smart

00:43:22Nor a contract

00:43:23It's a dumb program

00:43:24And once you understand

00:43:26That all it is

00:43:27Is a dumb program

00:43:28That clarifies

00:43:29A lot of stuff

00:43:30And the word contract

00:43:31There is in the meaning

00:43:32Of finance

00:43:33Most financial arrangements

00:43:35Are pretty simple

00:43:37And clear cut

00:43:37A bet with Charlie

00:43:39Your home loan

00:43:40An insurance policy

00:43:41Just two parties

00:43:43And some form

00:43:44Of exchange of value

00:43:45Based on a set of rules

00:43:46Called a contract

00:43:47The same is true

00:43:48For global financial markets

00:43:50Think bonds

00:43:51Futures

00:43:52Derivatives

00:43:52Credit default swaps

00:43:54They're all just contracts

00:43:56And the world economy

00:43:57Runs on them

00:43:58Using middlemen

00:43:59Who all charge high fees

00:44:01Proponents say

00:44:02That if we used

00:44:03Smart contracts

00:44:04We could tell the bankers

00:44:06Lawyers

00:44:06Escrow agents

00:44:07And Wall Street finance guys

00:44:09To take a hike

00:44:10A soda machine

00:44:12Is a smart contract machine

00:44:13Right?

00:44:14You stick in a dollar

00:44:15You get a soda

00:44:16It's very, very simple

00:44:17The soda machine

00:44:18Does take statistics

00:44:19And it has to make sure

00:44:21That you can't scam it

00:44:22By stealing the soda

00:44:23But Ethereum

00:44:24And the people

00:44:26That are trying

00:44:26To decentralize this

00:44:28Will tell you

00:44:29That that transaction

00:44:30That smart contract

00:44:32Between you

00:44:32And the soda machine

00:44:33Is so critical

00:44:34That it needs

00:44:35To be globally

00:44:36Processed

00:44:37And saved

00:44:38At 100,000

00:44:40Decentralized computers

00:44:41Because it is so sensitive

00:44:43And in reality

00:44:4499% of all of these contracts

00:44:47They don't need

00:44:48This kind of censorship resistance

00:44:50You know

00:44:51In two years time

00:44:52And people will see this film

00:44:53Or in four years time

00:44:54I think it will be an interesting

00:44:55Historic moment

00:44:56So what we're doing is

00:44:58We're saying

00:44:58We have this Ethereum network

00:44:59Inside the Ethereum network

00:45:00There's this asset

00:45:01Called Ether

00:45:02And we're actually

00:45:03Going to be selling Ether

00:45:04We're going to be selling Ether

00:45:05At a rate of 1,000 to 2,000 Ether

00:45:07For one Bitcoin

00:45:08And that's how

00:45:09We're going to raise all the money

00:45:10It worked

00:45:11Vitalik figured out a way

00:45:12To fund the Ethereum project

00:45:14And it made his investors

00:45:16Very rich

00:45:16This new model

00:45:19For fundraising

00:45:20Soon had a name

00:45:21An initial coin offering

00:45:23Or ICO

00:45:25IPOs and ICOs

00:45:27Sound similar

00:45:28But they have

00:45:28They're nothing similar

00:45:30The only thing similar

00:45:31About them

00:45:31Is they both help you raise money

00:45:33ICOs

00:45:36You don't do

00:45:36Until you have a company

00:45:37Until you have revenue

00:45:38Until you have users

00:45:40Until you actually

00:45:41Prove to the public investors

00:45:43That this is a valuable company

00:45:44That's worth investing

00:45:45And it's worth

00:45:46Buying their stock

00:45:47ICOs

00:45:49It's pre-product

00:45:50You have maybe

00:45:51A couple people on the team

00:45:52It's just a white paper

00:45:54And so people are just

00:45:55Buying into

00:45:56Trust

00:45:57Into faith

00:45:58That this is something

00:45:59That will exist

00:45:59And this is the guy

00:46:01Who opened the floodgates

00:46:02He created a standard

00:46:03Called ERC20

00:46:04Enabling you

00:46:06Or me

00:46:06Or anyone

00:46:07To create an ICO

00:46:09So on the one hand

00:46:11You have these smart contracts

00:46:12These little programs

00:46:13That can talk to each other

00:46:14But you have to define

00:46:16How do they talk to each other

00:46:17And because everybody

00:46:18Now agrees to that same standard

00:46:20Smart contracts

00:46:22Can interact within

00:46:23The entire Ethereum network

00:46:24And the ERC20 standard

00:46:26Allowed the creation of tokens

00:46:28The goal here is

00:46:30Ultimately I'd like to see

00:46:32Eight-year-olds

00:46:32Building their own

00:46:33Financial systems

00:46:34Yeah, but what if

00:46:36Some of these eight-year-olds

00:46:37Are also scammers

00:46:39So let's say

00:46:40I'm trying to do

00:46:41An ICO

00:46:42And I create a smart contract

00:46:45Where I create

00:46:46A million coins

00:46:48And one of the transactions

00:46:49Is that

00:46:51If you

00:46:51Send me

00:46:53A hundred dollars

00:46:53I will send you

00:46:54That many worth of coins

00:46:56It was a mad gold rush

00:46:58People realized

00:47:00Wow, if

00:47:00If I can just pull up

00:47:02Pull together a project

00:47:03In a white paper

00:47:04I can raise money

00:47:04Like a lot of money

00:47:06Some people hawking new coins

00:47:25Didn't actually exist

00:47:26This handsome chap

00:47:28Is the graphic designer

00:47:29Of a Bulgarian ICO

00:47:30Actually, they just posted

00:47:32A photo of Ryan Gosling

00:47:33Another project

00:47:35Raised millions in Ether

00:47:36And then vanished

00:47:37Leaving investors

00:47:39With this website

00:47:40Look closer

00:47:42That's nice

00:47:43Most of the scam coins

00:47:45Were built on

00:47:46Vitalik's smart contract

00:47:47Platform Ethereum

00:47:48Using Fabian's token standard

00:47:50This innovation

00:47:52Has enabled

00:47:53A lot of criminals

00:47:53And scammers

00:47:54So I would say

00:47:58The amount of scams

00:48:00In that system

00:48:01Are rather low

00:48:02It sometimes looks

00:48:04Bigger than it is

00:48:05I would assume

00:48:06That the actual scams

00:48:08Purposeful scams

00:48:10In that system

00:48:11Maybe were like

00:48:11Two or three percent

00:48:12I would say

00:48:13Actually most ICOs

00:48:15Were not scams

00:48:17I would say

00:48:18About two to five percent

00:48:19Of the thousands

00:48:19Of ICOs

00:48:20That are happening

00:48:21Are actually legit

00:48:22And the rest is

00:48:23Pretty scammy

00:48:25Or just not gonna work

00:48:26Can you define

00:48:28For me

00:48:30What a shit coin is?

00:48:31I think it's just

00:48:35A derogatory term

00:48:36People use

00:48:37On coins

00:48:39That they don't like

00:48:40For Bitcoin maximalists

00:48:42People who only

00:48:43Care about Bitcoin

00:48:44Everything else

00:48:45Is a shit coin

00:48:45In my point of view

00:48:47I think a coin

00:48:48That is kind of a scam

00:48:51Is a shit coin

00:48:52So people create coins

00:48:53Just to get rich from it

00:48:55Print a lot of tokens

00:48:57Out of thin air

00:48:58Try to pump the price up

00:48:59And make a lot of money

00:49:00From it

00:49:01And that's not really

00:49:02Providing a lot of value

00:49:03To the world

00:49:05No value for the world

00:49:07But they did add value

00:49:08For their creators

00:49:10If you can print

00:49:11Billions of tokens

00:49:12Out of thin air

00:49:12Like a central bank

00:49:13Well that's why this guy

00:49:15Was one of the wealthiest

00:49:16Men on earth

00:49:17For a brief moment

00:49:18Here's how that happened

00:49:20There will only ever

00:49:21Be 21 million Bitcoins

00:49:23And its inventor

00:49:24Had to earn them

00:49:25By mining with his computers

00:49:27Just like everyone else

00:49:28There are more Litecoins

00:49:30And even more Ether

00:49:31In circulation

00:49:32Vitalik kept some portion

00:49:34To fund the development team

00:49:35And then there's Ripple

00:49:37They created 100 billion XRP

00:49:40But kept 80%

00:49:42For themselves and their clients

00:49:43And the other 20%

00:49:45They gave as a bonus

00:49:46To the founders

00:49:46That's how you get to be

00:49:48One of the richest men on earth

00:49:50Okay, maybe I was a bit

00:49:52Too harsh on ICOs

00:49:53Democratizing startup finance

00:49:55Can be a good thing

00:49:56There were many legit companies

00:49:59Raising capital too

00:50:00Over the years

00:50:01I've met many founders

00:50:02Who have real offices

00:50:03With real people

00:50:04Trying to solve real problems

00:50:06But to Bitcoin maximalists

00:50:09Bitcoin is the be-all

00:50:11End-all of cryptocurrency

00:50:12Other blockchains

00:50:14ICOs

00:50:15Smart contracts

00:50:16That's all a waste of time

00:50:18There is no such thing as

00:50:23Blockchain

00:50:24Revolutionize the healthcare industry

00:50:28And the automotive production

00:50:30Of course there is

00:50:32Of course there is

00:50:33What you're saying is a maximalist point of view

00:50:35You are speaking about

00:50:37From a perspective of

00:50:38Of a cult

00:50:40Or a sect

00:50:41My problem is that

00:50:43You are hijacking a movement

00:50:46Of a technology

00:50:47That is far greater

00:50:48And has far more potential

00:50:50Than just these individuals

00:50:52There's all of these different things

00:50:54That you could use blockchain for

00:50:55And so people have

00:50:57They're almost like different ecosystems

00:50:58And then what you see

00:51:00Is almost like an evolutionary process

00:51:02Where the blockchains fork

00:51:04And they have the same ancestries

00:51:06But they adapt to different environments

00:51:08And we see this like

00:51:09Ever increasing level of diversity

00:51:11In number of blockchains

00:51:12So I think the idea

00:51:13That there's like one blockchain

00:51:15Going to be one blockchain

00:51:16And it's going to be fit for everything

00:51:17It is almost like

00:51:20Disregarding the nature of evolution

00:51:23Meanwhile, the big corporations

00:51:26Have been studying cryptocurrency

00:51:28And they think that

00:51:29Bitcoin's underlying database

00:51:31Is where the magic is

00:51:32The model in the boardrooms

00:51:33Blockchain, not Bitcoin

00:51:37Back in Germany

00:51:42My friend Oliver

00:51:43Keeps tabs on the men in suits

00:51:45He used to be one of them

00:51:47BMW is looking at using the blockchain

00:52:04For their future fleet of electric cars

00:52:06To interact with public transport

00:52:08Lufthansa wants to see

00:52:10If the blockchain can better track parts and maintenance

00:52:13And Deutsche Telekom is using smart contracts

00:52:15To negotiate tariffs

00:52:17For roaming costs with other telecoms

00:52:20If we can store trade certificates

00:52:27And shipping documents on the blockchain

00:52:29You can check to see

00:52:30Where those organic avocados really came from

00:52:33Who grew them

00:52:34Who packed them

00:52:35And who shipped them

00:52:37Besides, the Internet of Things

00:52:39Needs a ledger of all those things

00:52:41Well, that's the idea

00:52:44Behind private centralized blockchains

00:52:46Maintained and controlled by corporations

00:52:48A famous example

00:52:49The Walmart supply chain trial

00:52:51Which they're working with IBM

00:52:52That's completely centralized

00:52:55They use a blockchain-derived product

00:52:58Hyperledger

00:52:58But all the nodes reside on the IBM cloud

00:53:01And they're all administered by Walmart

00:53:03And their suppliers use it

00:53:04Because Walmart told them to

00:53:06It's a centralized database system

00:53:08But they marked it blockchain

00:53:09So that means

00:53:10One, they wouldn't have got a New York Times headline

00:53:13If they just said database

00:53:16You might wonder

00:53:17What's the point of a blockchain

00:53:18If it's controlled by a company?

00:53:20Well, I compare it to the open internet

00:53:22Versus company-owned intranets

00:53:24They both exist

00:53:26Meanwhile, Facebook announced a cryptocurrency

00:53:29For their 2 billion users

00:53:31Such a system might be more efficient

00:53:33Than a public blockchain

00:53:34But there's a downside

00:53:35Some governments banned it within weeks

00:53:38You're based in New York, right?

00:53:41Right now, the way is pieces of paper

00:53:43That's being shifted around

00:53:44That doesn't make any sense

00:53:45That infrastructure needs to be replaced

00:53:46Why occupy Wall Street

00:53:48When we can build a new one

00:53:49On the blockchain instead?

00:53:51In the future of decentralized finance

00:53:53Stock certificate

00:53:54Corporate bonds

00:53:56Insurance policies

00:53:57Property deeds

00:53:58Mortgages

00:53:59All can be turned into crypto tokens

00:54:01And made tradable 24-7

00:54:21What's much more exciting than tokenized securities

00:54:27Of traditional businesses

00:54:28Where it's just equity that you pass around

00:54:30Is totally novel digital securities

00:54:33That you couldn't do before, right?

00:54:35Novel use cases

00:54:36Where you can kick back cash flow

00:54:38On a continual basis

00:54:39I think some examples of this

00:54:41That we're seeing now

00:54:42Are MakerDAO

00:54:42Binance

00:54:44Which has Binance Coin

00:54:45That's actually much bigger

00:54:47Of an opportunity

00:54:48Because it represents

00:54:49Something totally new

00:54:50My name is Dr. Gemma Green

00:54:57And I'm a co-founder

00:54:59And the chairman of Powerledger

00:55:01And we use the blockchain

00:55:03To enable electricity trading

00:55:05Energy asset financing

00:55:07And carbon markets

00:55:08This award-winning Australian company

00:55:10Wants to take us

00:55:11To a carbon-free economy faster

00:55:13Gemma has identified a problem

00:55:15Our apartment buildings

00:55:16Often the buildings are tenanted

00:55:18And it means that

00:55:19If there is solar panels

00:55:20The owner of the apartment

00:55:22Isn't really incentivized

00:55:23To put in solar panels or batteries

00:55:25Because the tenant benefits

00:55:26But using our platform

00:55:28The tenant will pay their electricity bill

00:55:30To the body corporate

00:55:31Using Powerledger

00:55:32The tenant pays the owner

00:55:34Not the power company

00:55:35For the electricity

00:55:36And if the tenant isn't at home

00:55:38The unused energy

00:55:39Will be sold to a neighbor

00:55:41Lowering their power bill

00:55:42And making a profit for the owner

00:55:44So it actually creates the mechanism

00:55:47To justify investing in the capital

00:55:49In the first place

00:55:50This system could speed up investment

00:55:52In sustainable energy projects

00:55:53By making it easy to own a piece

00:55:55Of a solar or wind farm

00:55:57Why do I need a blockchain for this?

00:56:02Can't I invest in a solar farm

00:56:04Without this new fancy tech?

00:56:06The blockchain acts as a kind of asset register

00:56:09An income register

00:56:10And in tokenizing the asset

00:56:12It becomes tradable on an exchange

00:56:14You might own two or three solar panels

00:56:16Of a thousand

00:56:18In a solar farm

00:56:20And you would receive the income

00:56:22Associated with that amount of ownership

00:56:24Now bankers don't very much like

00:56:27Being cut out of the cash flow loop

00:56:29So they took another look

00:56:30At Mr. Nakamoto's curious little white paper

00:56:33And they've recently been spending

00:56:35A billion dollars a year

00:56:36In blockchain research

00:56:38Isn't it ironic?

00:56:41Satoshi's anti-bank invention

00:56:42Is now being used by the banks

00:56:44To move money faster

00:56:45And by big business

00:56:46To track supply chains

00:57:03Cryptocurrencies

00:57:04Digital tokens

00:57:05Public blockchains

00:57:06Private blockchains

00:57:07Where is the killer app?

00:57:09Well, adoption of new technology

00:57:11Often follows old trends

00:57:13My name is Mark Ventresca

00:57:15I'm here at Oxford

00:57:17The University of Oxford

00:57:17I'm the faculty

00:57:18I'm an economic sociologist

00:57:20By training

00:57:21Interested in how large-scale

00:57:22Infrastructure changes

00:57:24So great to see you

00:57:25After nine years

00:57:26I know

00:57:26Mark teaches a class

00:57:29On innovation and system building

00:57:30He tells me what must align

00:57:32For a new technology

00:57:33To become fruitful

00:57:35All technologies start out

00:57:37As interesting ideas

00:57:39Some of them begin to develop

00:57:40Into innovations

00:57:41And we know that

00:57:42That arc from invention

00:57:43To innovation

00:57:44Takes a lot of time

00:57:45It takes a lot of work

00:57:46Some of those innovations

00:57:47Eventually become

00:57:48Commercially viable

00:57:49Case in point

00:57:51The automobile

00:57:52In the early days

00:57:54Cars looked like

00:57:54A pretty lousy idea

00:57:56And poorly executed

00:57:57Early on

00:58:00There were electric cars

00:58:01There were battery-operated cars

00:58:03The combustion engine

00:58:04Was a relative latecomer

00:58:06It took Henry Ford's

00:58:08Mass production

00:58:09To create the standards

00:58:10What a car looked like

00:58:11What parts it needed

00:58:13How it operated

00:58:14That's when complementary assets

00:58:16And infrastructure emerged

00:58:18So you have paved roads

00:58:21And petrol stations

00:58:21Then you have secondary things

00:58:23Like motels

00:58:24And restaurants

00:58:25And places to eat

00:58:26While you're on the highway

00:58:27And buy food

00:58:28Then you have

00:58:29Interesting questions

00:58:30Like what side of the road

00:58:31Should we drive on

00:58:31An entire ecosystem

00:58:33Had been built

00:58:34But it wasn't a smooth transition

00:58:36By any means

00:58:37The imagery here is

00:58:39There are maybe

00:58:40A couple of hundred

00:58:41Three or four hundred

00:58:41Companies that try to get

00:58:42Into this space

00:58:43But they're not car companies

00:58:44They're bicycle manufacturers

00:58:46Or steam engine manufacturers

00:58:48At some point

00:58:49In this account

00:58:50All that period of ferment

00:58:52Settles around

00:58:52A dominant design

00:58:53And then you have

00:58:54What innovation economists

00:58:56Would call a shakeout

00:58:57They would say

00:58:58You go from

00:58:58Three or four hundred producers

00:59:00All of them vying

00:59:02To shape this emerging space

00:59:04This emerging thing

00:59:05Called the automobile

00:59:06You may then drop

00:59:07To twenty or thirty manufacturers

00:59:09And then you may drop

00:59:10To five or six

00:59:11It took fifty years

00:59:14For cars to go

00:59:15From curious invention

00:59:16To finely tuned mass market product

00:59:18Fifty years

00:59:19To change the world

00:59:20As we knew it

00:59:21Your destination is on the left

00:59:27But our story

00:59:29Isn't about cars or roads

00:59:31I want to learn

00:59:32About dominant designs

00:59:33Of digital technology

00:59:34That's why I came

00:59:36To the computer history museum

00:59:38In the heart of silicon valley

00:59:39So you're looking at

00:59:41The console for SAGE

00:59:42Which was

00:59:44Probably the first computer network

00:59:46There were twenty-three centers

00:59:48Around North America

00:59:49To warn against Soviet bombers

00:59:51And they were waiting

00:59:53For World War III

00:59:54The US military

00:59:56And some American universities

00:59:57Asked this guy

00:59:59To create a new kind of network

01:00:00To connect their separate networks

01:00:02This young girl

01:00:04Got up

01:00:05And she had a bunch of questions

01:00:07But her first one was

01:00:08How did I manage

01:00:10To convince all the governments

01:00:11Of the world

01:00:12To let us build the internet

01:00:13And I said

01:00:14Well, except for the handful of us

01:00:16That were actually working

01:00:17On the internet

01:00:17Nobody else really thought

01:00:19It was a very good idea

01:00:20And so you didn't think

01:00:21It was going to lead anywhere

01:00:22And, you know, we pretty much

01:00:24Had a free running room

01:00:25Yes, that's the man

01:00:27Who co-invented TCPIP

01:00:28About fifty years ago

01:00:30That's the original academic paper

01:00:31You can think of TCP

01:00:33As the backbone of the internet

01:00:34But back then

01:00:36There were many competing technologies

01:00:38There was a very big battle

01:00:40Over the protocols

01:00:41TCPIP didn't just win by default

01:00:43It won through attrition

01:00:46By basically being better

01:00:48Simpler

01:00:49Easier to deploy

01:00:50Than all of the other

01:00:51Scalable

01:00:51And more scalable

01:00:53And it had a lot of competition

01:00:55From phone companies

01:00:56That tried to make

01:00:58The internet

01:00:59A closed

01:01:01Metered

01:01:01Controlled

01:01:02System

01:01:04They tried to do

01:01:05What people are trying to do

01:01:06Today with blockchains

01:01:07Which is take

01:01:08The open decentralized network

01:01:09Can turn it into this

01:01:11Sterile, closed corporate system

01:01:13Where they can charge

01:01:14By the minute

01:01:14And be in control

01:01:15The internet's ultimate victory

01:01:17Has a dirty little secret

01:01:19The men in charge of promoting it

01:01:21Were employees of the military

01:01:23With the muscle

01:01:24And the cash

01:01:25To beat the competition

01:01:27And then there's email

01:01:28Email?

01:01:29I heard that's really neat

01:01:30Email was perhaps

01:01:31The internet's first killer app

01:01:33Then, in the early 90s

01:01:34Tim Berners-Lee

01:01:35Introduced the World Wide Web

01:01:37As a 20-page proposal

01:01:38Soon, there were browsers

01:01:40That made it more accessible

01:01:42And user-friendly

01:01:43For the general public

01:01:44I think that the internet

01:01:48Is going to be

01:01:49One of the major forces

01:01:51For reducing the role

01:01:53Of government

01:01:54The one thing that's missing

01:01:56But that will soon be developed

01:01:57Is a reliable e-cash

01:02:00Still, few understood

01:02:01The potential of this new tech

01:02:03From people that thought

01:02:04It would just be

01:02:05The world's greatest library

01:02:07To some of the early

01:02:09Cypherpunks

01:02:10Who are the direct

01:02:12Fathers of crypto

01:02:14And certainly

01:02:15Blockchain-type ideas

01:02:17Who thought

01:02:18Much as today

01:02:19That it would create

01:02:20Kind of a commons

01:02:22That was outside

01:02:23Of the direct control

01:02:24Of normal laws

01:02:25And governments

01:02:25That's ironic

01:02:27Because the US government

01:02:28Funded it in the first place

01:02:30The spiritual forefathers

01:02:32Of crypto

01:02:32Who built the early internet

01:02:33Thought it was a new technology

01:02:35For global freedom of expression

01:02:37And a blank canvas

01:02:38Upon which they could

01:02:39Build their dreams

01:02:40Boy, that sounds familiar

01:02:42And the media

01:02:43They didn't quite know

01:02:45What to make of this new thing either

01:02:46But sure enough

01:02:47They found juicy stories

01:02:48About the dark side of it

01:02:50Which was

01:02:51The internet is full of criminals

01:02:53And pedophiles

01:02:54And pornographers

01:02:55And it's too dangerous

01:02:57To use your credit card on it

01:02:59It's full of scams

01:03:00We're seeing the exact same story now

01:03:02We envision technology

01:03:04As if it were autonomous

01:03:05As if it were simply

01:03:07Outside of human

01:03:08And social experience

01:03:10What we see

01:03:11Are technologies

01:03:12That become shaped

01:03:13By commercial interests

01:03:14By political

01:03:15And regulatory infrastructure

01:03:17By actors

01:03:18Who are acting

01:03:20For many reasons

01:03:20Right?

01:03:21Where do you want them?

01:03:22Remember Bob?

01:03:23The big telecoms

01:03:25Wanted his thoughts

01:03:25On a little idea

01:03:26That were kicking around

01:03:27They had a meeting

01:03:29Where they were

01:03:30Trying to figure out

01:03:30How they could buy the internet

01:03:31If they couldn't kill it

01:03:32Well, why not own it?

01:03:33I got asked that myself

01:03:35By an executive

01:03:36At a large information company

01:03:38It was probably in 1990

01:03:40If they could buy the internet

01:03:41I remember asking them

01:03:44Well, why don't you

01:03:45Buy the world economy

01:03:46And you can own everything

01:03:47Why don't you buy the weather

01:03:48And you can control that too?

01:03:50As the internet's momentum

01:03:52And hype grew

01:03:53Investors threw money

01:03:54At entrepreneurs

01:03:55And shady characters

01:03:56The joke in the dot-com era

01:04:06Was that you put a dot-com

01:04:07Behind your company

01:04:09Even if it had nothing

01:04:10To do with the internet

01:04:11And the venture capitalists

01:04:13Just throw money at you

01:04:14It took a few decades

01:04:15And hype cycles

01:04:16But the wild internet

01:04:17Was eventually domesticated

01:04:19Co-opted by trillion dollar companies

01:04:21And then fundamentally transformed

01:04:24How we shop

01:04:24Work

01:04:25And communicate

01:04:26Speaker's Corner

01:04:33In London's Hyde Park

01:04:34For 150 years

01:04:37This has been a safe place

01:04:38To stand on a soapbox

01:04:40To sell your ideas

01:04:41Preach the gospel

01:04:42Badmouth the king

01:04:44Or promote communism

01:04:46Today with the World Wide Web

01:04:48We can stand on giant digital soapboxes

01:04:51Using Facebook

01:04:52Twitter

01:04:53YouTube

01:04:53We can share our ideas

01:04:55Or start a fight

01:04:56With anyone on the planet

01:04:58An interest of the overwhelming majority

01:05:01Well

01:05:02Almost anyone

01:05:04Of 65 countries studied

01:05:06China has the least free internet

01:05:08Worse than Iran

01:05:09Cuba

01:05:10Or Syria

01:05:10A police force

01:05:12Of more than 2 million cybercops

01:05:14And the world's most sophisticated

01:05:16Artificial intelligence system

01:05:17Keep China's web content clean

01:05:19And users in check

01:05:21So sorry to break it to you

01:05:23But there's no longer

01:05:24World Wide Web

01:05:25Welcome to the splinternet

01:05:26No

01:05:27It's not just in China

01:05:28In Russia

01:05:30Wikipedia is illegal

01:05:31Facebook is outlawed

01:05:33In Bangladesh

01:05:33There's no WhatsApp in Dubai

01:05:36Twitter was banned in Turkey

01:05:37After news about government corruption spread

01:05:40And Saudi Arabia shut down

01:05:42The region's largest news service

01:05:43Al Jazeera and the BBC

01:05:45Meanwhile

01:05:46In India

01:05:46The entire web was turned off

01:05:48100 times last year

01:05:50To be fair

01:05:52Some of the censorship

01:05:53Is to prevent terrorist recruitment

01:05:55Or to stop violent mobs

01:05:57From hurting people

01:05:58But I think government's control

01:06:00Over the internet

01:06:00Has gone just a little too far

01:06:02Hello

01:06:04I'm from the Australian government

01:06:06Do you have something to hide?

01:06:08We've taken the UK's

01:06:09Fascist spying law

01:06:10And made it even more fascist

01:06:12To test this shit fuckery

01:06:13We chose Australia

01:06:15The weakest of the Five Eyes alliance

01:06:16Thanks to our lack

01:06:17Of a bill of rights

01:06:18So international data requests

01:06:20Will now be funneled through us

01:06:21Compromising not just Aussies

01:06:23But all of you fuckers too

01:06:25You're welcome

01:06:26Hold on

01:06:31Satoshi turned money into code

01:06:34Code is just letters and numbers

01:06:35Which is speech, right?

01:06:37So money now is speech

01:06:39Which is a pretty powerful idea

01:06:40If you think about it

01:06:41But if Bitcoin is this uncontrollable

01:06:44Unsensible technology

01:06:45Can the blockchain also enable

01:06:47Global free speech?

01:06:50In some places

01:06:51It already does

01:06:52One Chinese student

01:06:54Tried to report a sexual assault

01:06:55And was silenced by her college

01:06:57But she knew that she could

01:06:59Attach a message

01:06:59Into the metadata

01:07:00Of an Ethereum transaction

01:07:01So she spent 15 cents

01:07:04And now her letter

01:07:05Outlining her story

01:07:06And the threat she received

01:07:07Is on the public

01:07:08Ethereum blockchain

01:07:09Where it will remain

01:07:11Unchangeable forever

01:07:12The early crypto pioneers

01:07:21Wanted to democratize money

01:07:22Finance 2.0

01:07:23If you will

01:07:24But now

01:07:25The believers in the blockchains

01:07:26Have their eyes

01:07:27On a bigger price

01:07:28They want to decentralize

01:07:30Everything

01:07:31Web 3.0

01:07:32Facebook

01:07:33Without the propaganda

01:07:35Twitter

01:07:35Without the terms of service

01:07:37Reddit

01:07:38Without the censorship

01:07:39Online identity

01:07:40Without the hacks

01:07:41Internet browsing

01:07:43Without tracking software

01:07:44Websites without the advertising

01:07:46We pay with

01:07:50Either attention

01:07:51Or privacy

01:07:52So we either

01:07:54Have advertising

01:07:55Thrown at us

01:07:56Our attention is monetized

01:07:58Or we pay with

01:07:59Micro violations

01:08:00Of our privacy

01:08:01And that is why

01:08:02The internet today

01:08:03Is the ultimate

01:08:04Surveillance economy

01:08:05One privacy tool

01:08:06Is the Brave browser

01:08:07It doesn't store data

01:08:09And pays users

01:08:10And content publishers

01:08:11In their basic

01:08:12Attention tokens

01:08:13What most people

01:08:20In the crypto space

01:08:21Are probably

01:08:22Most excited about

01:08:23Is this notion

01:08:25That we can create

01:08:27These kind of

01:08:27User-owned

01:08:28Decentralized networks

01:08:30You can for instance

01:08:31Offer file storage

01:08:32In the way

01:08:33That an Amazon does

01:08:34Or that you could

01:08:36Offer search

01:08:37You know

01:08:37The way Google does

01:08:38But do it in a peer-to-peer

01:08:40Fashion without this

01:08:42Behemoth at the center

01:08:43Extracting rents

01:08:44And do it in a way

01:08:46Where all the people

01:08:46That are users of it

01:08:47Can benefit

01:08:48Blockstack is the next

01:08:50Evolution in computing

01:08:51We've seen three main

01:08:53Eras of computing

01:08:54Before

01:08:54We had mainframes

01:08:56That were these

01:08:56Large computers

01:08:57That everyone depended on

01:08:59Then we got desktops

01:09:00Where users

01:09:01Were in control

01:09:02And they own

01:09:03Their own computers

01:09:04And their data

01:09:05And information

01:09:06And then we saw

01:09:07Cloud computing

01:09:08Where we are dependent

01:09:09On these large companies

01:09:11Running services for us

01:09:12And we are about

01:09:13To embark

01:09:14On this major shift

01:09:15In computing

01:09:16Called decentralized computing

01:09:18Where users

01:09:19Are getting back in control

01:09:21And they really could

01:09:26Someday

01:09:26Compete with

01:09:28If not even

01:09:29Take down

01:09:29Some of the big

01:09:30Tech giants

01:09:31Like the Facebooks

01:09:32And the Googles

01:09:33And the Amazons

01:09:33That we know

01:09:34That's a tall

01:09:35Tall order

01:09:36It is

01:09:37It is

01:09:38But I mean

01:09:39Who would have thought

01:09:39At the beginning

01:09:40Of the internet

01:09:40That Wikipedia

01:09:41Would beat out

01:09:42Encarta

01:09:42These Web3 promises

01:09:44Sound good

01:09:45But my professional

01:09:46Network is on LinkedIn

01:09:47My personal photos

01:09:48Are on Instagram

01:09:49If I deleted my accounts

01:09:51I'd lose everything

01:09:52These services

01:09:54Aren't just

01:09:54Walled gardens

01:09:55They are digital

01:09:56Prisons

01:09:57Data is locked up

01:09:58In several companies

01:09:59And we don't own it

01:10:01The companies own it

01:10:02But they use the data

01:10:04To mine it

01:10:05To advertise to us

01:10:07To sell us things

01:10:07To manipulate us

01:10:08To change our behavior

01:10:10And Ocean Protocol

01:10:11Is the answer

01:10:12To freeing up the data

01:10:14And giving the power

01:10:15Back to individuals

01:10:15So how do you plan

01:10:17To do that?

01:10:19It's essentially

01:10:20An operating system

01:10:21On top of Ethereum

01:10:22That allows for

01:10:24People to share data

01:10:26Storage

01:10:28Algorithms

01:10:29And computation

01:10:31In a way

01:10:32That preserves privacy

01:10:33It's too early

01:10:34To tell

01:10:35Whether projects

01:10:35Like these

01:10:36Can succeed

01:10:37But I do like

01:10:38The idea

01:10:38Of digital property rights

01:10:40Wouldn't it be nice

01:10:41If companies

01:10:42Paid us in cryptocurrency

01:10:43When they use our data

01:10:44And if we control

01:10:46Who has access to it

01:10:47Instead of our digital overlords

01:10:49And then

01:10:50There's the question

01:10:51Of our most precious information

01:10:53Our very identity

01:10:55If you take

01:10:56The history of mankind

01:10:57A lot of blood

01:10:58Has been shed

01:10:59Getting to democracy

01:11:00The idea that every man

01:11:01Has a vote

01:11:02In the world

01:11:03And I take it kind of personally

01:11:05Because I was born in South Africa

01:11:07During apartheid

01:11:08The child of Indian immigrants

01:11:11And we were not allowed to vote

01:11:13Winnie tells me

01:11:14That in the United States alone

01:11:16There are 14,000 different paper forms

01:11:18Of birth certificates

01:11:19Issued by local authorities

01:11:21There are mistakes on them

01:11:23And even identity theft

01:11:25Starting from birth

01:11:26All your information

01:11:28Is already out there

01:11:28There's five hacks a day

01:11:30Happening

01:11:30So how do you prove

01:11:32That you are

01:11:32Who you say you are?

01:11:38Our crypto celebrity

01:11:39Andreas

01:11:40Has 10 imposters

01:11:41On Instagram

01:11:41Ryan Gosling's alter ego

01:11:43Is committing financial fraud

01:11:45In Bulgaria

01:11:45And who knows

01:11:46What's happening

01:11:47With your compromised information

01:11:49Blockchain-based services

01:11:51Like civicsidentity.com

01:11:53Or Microsoft's ION

01:11:54Say they can give us control

01:11:56Of our identity

01:11:57And protect it

01:11:58Currently we are having

01:12:00Our reputation

01:12:01Our history

01:12:02With different systems

01:12:04With different companies

01:12:04Like Facebook

01:12:05And Twitter

01:12:06With the blockchain

01:12:07The core important information

01:12:09Sits on that trusted system

01:12:11Which we control

01:12:13And we can take

01:12:14From wherever we want to go

01:12:15To something else

01:12:16Meanwhile

01:12:17Vitalik has inspired

01:12:18Thousands of software developers

01:12:20To build his vision

01:12:21Of decentralized finance

01:12:23But early in Ethereum's history

01:12:25Something went wrong

01:12:26With one of the first

01:12:27Smart contracts

01:12:28Called the DAO

01:12:29The DAO went like this

01:12:31They wanted a completely

01:12:32Decentralized autonomous organization

01:12:35They wanted a science fiction dream

01:12:38Of an independent computer program

01:12:40That was immune to human influence

01:12:42So what they actually did

01:12:44Was build a forthcoming disaster

01:12:46The problem?

01:12:48Some sloppy code

01:12:49Left their safety deposit box

01:12:51Wide open

01:12:51And somebody

01:12:52Just helped themselves

01:12:54Allowed them to pilfer

01:12:5750 million dollars

01:12:58From the smart contract

01:13:00And that's why

01:13:03When I say

01:13:04It's not even clear

01:13:05Whether or not it was a hack

01:13:06You know

01:13:06The smart contract

01:13:07Allowed them to do that

01:13:08And what happened was

01:13:09The majority of the community

01:13:10Did decide to roll back

01:13:12The blockchain

01:13:13And to pretend like

01:13:15The DAO never happened

01:13:16And

01:13:17Yep

01:13:17You heard that correctly

01:13:18The top decision makers

01:13:20Forked Ethereum

01:13:21Into two separate networks

01:13:22One where the money was gone

01:13:24And a new one

01:13:26Where the money was restored

01:13:27To its original owners

01:13:28Breaking the first rule

01:13:30Of cryptocurrency

01:13:31Never alter the blockchain

01:13:33Immutability lasts

01:13:37Only as long

01:13:38As the big boys

01:13:39Haven't lost money

01:13:40Just like Bitcoin

01:13:41Ethereum also experienced

01:13:43Scaling problems

01:13:44When a decentralized app

01:13:46Called CryptoKitties

01:13:47I'm not kidding

01:13:48Went viral

01:13:49And the kitties

01:13:50Bred like rabbits

01:13:52In its blockchain

01:13:53The system ground to a halt

01:13:55The network is now

01:13:57Being upgraded

01:13:58But there are many competitors

01:13:59Who claim

01:14:00That their blockchains

01:14:01Are faster

01:14:01Fairer

01:14:02And more scalable

01:14:03The next shakeout

01:14:05Will sure be interesting

01:14:06To watch

01:14:06It's never easy

01:14:09To admit

01:14:09That you've been fooled

01:14:11Maybe I've been fooled

01:14:15Maybe

01:14:17Maybe

01:14:21The crypto community

01:14:24Doesn't agree

01:14:25On much of anything

01:14:25Except when it comes

01:14:27To this guy

01:14:28Hello

01:14:29My name is Dr. Craig Wright

01:14:30I'm the chief scientist

01:14:32Of Enchain Limited

01:14:33On the balance

01:14:34Of the evidence

01:14:35Craig Wright

01:14:36Almost certainly

01:14:37Is not Satoshi Nakamoto

01:14:39The proofs that he gave

01:14:40Were not real proofs

01:14:41In the end

01:14:42He either chickened out

01:14:43Or didn't actually

01:14:44Have the proof

01:14:44Craig Wright

01:14:45Obviously seems to be

01:14:47Scammer

01:14:48I'm happy to say that

01:14:52Craig Wright

01:14:52Is a fraud

01:14:54I know he's controversial

01:14:56No one really changes

01:14:58The world

01:14:58Without being bold

01:15:00Without disrupting

01:15:01People's ideas

01:15:02And without drawing

01:15:03A little controversy

01:15:04Around the way

01:15:04But the majority

01:15:07Of the industry

01:15:07Says Craig

01:15:08Is crazy

01:15:09Or a con man

01:15:09So Craig

01:15:11Kindly join us on stage

01:15:13And that giving him

01:15:14Screen time

01:15:14Is irresponsible

01:15:15And I'll say this

01:15:17Quite frankly

01:15:17Because

01:15:18I've got more money

01:15:20Than your country

01:15:21But I was in the area

01:15:24And just couldn't resist

01:15:25A few quick facts

01:15:34Craig is the person

01:15:36Who claimed to be

01:15:36Satoshi Nakamoto

01:15:37On the BBC

01:15:38But his cryptographic proof

01:15:41Didn't check out

01:15:41And since then

01:15:43Many just see him

01:15:44As an imposter

01:15:44I'm the guy

01:15:46With a law degree

01:15:47That used to

01:15:48Work for federal police

01:15:50And military intelligence

01:15:52You would actually

01:15:56Be the perfect

01:15:56Super villain

01:15:57For us

01:15:57Because everybody

01:15:58Kind of

01:15:59Doesn't believe you

01:16:00Hates you

01:16:00What do you say

01:16:02To your critics

01:16:03Do I start with

01:16:04A muhahaha

01:16:05Many people

01:16:06Are hated

01:16:08Early on

01:16:08Because they're not

01:16:09Understood

01:16:09If it doesn't

01:16:10Have a use

01:16:11It shouldn't

01:16:12Have a value

01:16:12Right now

01:16:13Practically everything

01:16:14Is a Ponzi

01:16:15I don't particularly

01:16:16Like Ethereum

01:16:17It's a dead end

01:16:18They can say

01:16:19Whatever they want

01:16:20About ERC20

01:16:21Except practically

01:16:22Everything they're doing

01:16:23That they want to solve

01:16:25I solved years ago

01:16:26Decentralisation

01:16:28Was never the point

01:16:29Of Bitcoin

01:16:29Ever

01:16:30I was called a fool then

01:16:32And I'll be called

01:16:33A fool again

01:16:34And every single time

01:16:36I'll be right

01:16:37I picked up

01:16:39Mastering Bitcoin

01:16:40The other day

01:16:41And I opened page one

01:16:43And I went

01:16:44This is wrong

01:16:45Silk Road

01:16:46Was the worst thing

01:16:48To ever happen

01:16:49To Bitcoin

01:16:49You seem to think

01:16:51That nobody else

01:16:52Has anything interesting

01:16:53To say

01:16:53You've already solved

01:16:54The problems

01:16:55Many years ago

01:16:55That's kind of

01:16:56The vibe

01:16:57That I'm getting here

01:16:57Fairly much

01:16:58Yes

01:16:59Okay

01:17:01Turns out

01:17:03Craig's playbook

01:17:04Is Patents

01:17:04Some say

01:17:05He's a patent troll

01:17:06Well I've got

01:17:08A bucket list bit

01:17:09Which is

01:17:09To beat Edison

01:17:10Which

01:17:11As silly as it sounds

01:17:13Came from

01:17:14A Simpsons episode

01:17:15To beat Mr. Edison

01:17:17I need to get

01:17:171,085

01:17:20And right at the moment

01:17:21I'm on white paper

01:17:231,074

01:17:25For each white paper

01:17:27He claims to file

01:17:28About 1.1 patents

01:17:30The first 163

01:17:32Will be very shortly

01:17:34Public

01:17:34Next year

01:17:35People are going to start

01:17:36Seeing that we have

01:17:37Hundreds of patents

01:17:38And everything changes

01:17:40We file PCT

01:17:41And keep them secret

01:17:42As long as we can

01:17:43So that's a huge

01:17:44Philosophical disagreement

01:17:45Between myself

01:17:46And Craig

01:17:48So I think

01:17:48Government

01:17:49Patents

01:17:50Are a government

01:17:50Granted monopoly

01:17:51The big brains

01:17:53And big egos

01:17:54Who broke away

01:17:54From Bitcoin

01:17:55Couldn't hash out

01:17:56Their differences

01:17:57So there was

01:17:58Another split

01:17:59Craig's new coin

01:18:01Also claims to be

01:18:02The real Bitcoin

01:18:03And he wants to

01:18:04Enable blocks

01:18:04A million times larger

01:18:06Updating and storing

01:18:07This giant blockchain

01:18:08Will be impossible

01:18:09For normal computers

01:18:10I just can't

01:18:11Figure this guy out

01:18:12Is he a genius

01:18:14A madman

01:18:14A fraud

01:18:15Maybe all three

01:18:17And a lot of the things

01:18:18He say

01:18:18Are very

01:18:19Just wrong technically

01:18:22However

01:18:23I did calculate

01:18:24That Enchain

01:18:25Spent tens of millions

01:18:26Of dollars

01:18:27To develop

01:18:28And file these patents

01:18:29And some

01:18:30Have been granted

01:18:31What's the point

01:18:33Of having a war chest

01:18:34Full of IP

01:18:34If they aren't

01:18:36Going to enforce it

01:18:37So basically

01:18:38What I'm looking at

01:18:38Is stuff that

01:18:40Nobody's ever really seen

01:18:41In the community

01:18:42That's correct

01:18:42Yes

01:18:43As soon as the price

01:18:44Of Bitcoin

01:18:45And the cryptocurrencies

01:18:45Went higher

01:18:46What did most people do?

01:18:49All they did

01:18:50Was start adopting

01:18:51All the worst behaviors

01:18:52Of bankers

01:18:53Scamming the market

01:18:54Centralizing wealth

01:18:56In a few hands

01:18:57Hmm

01:18:58I think that's called

01:18:59Human nature

01:19:00So everyone wants

01:19:02To change the world

01:19:03Simply because

01:19:04They're not in the position

01:19:05Of power

01:19:05As soon as they get

01:19:07Into that position

01:19:07They do exactly

01:19:08The same thing

01:19:09So guys like you

01:19:10Will build a better future

01:19:11And we can trust you guys

01:19:12Better than the bankers

01:19:14You don't have to trust us

01:19:15That's the beauty

01:19:15We're building

01:19:16A trustless

01:19:17Decentralized system

01:19:19That gives power to people

01:19:20Trustless sounds like

01:19:28There's no trust

01:19:28But actually it means

01:19:30We don't need to trust you

01:19:32I think the better word

01:19:33Should be trust-free

01:19:34About one-third

01:19:36Or maybe half

01:19:37Of all the cost

01:19:38Of all the transactions

01:19:39Are paid

01:19:40To establish trust

01:19:41Between trading parties

01:19:43Like we're paying

01:19:44For lawyers

01:19:46We're paying auditors

01:19:48We're paying

01:19:49Even police

01:19:50Even regulators

01:19:51Government

01:19:51To build trust

01:19:53To ensure

01:19:53Everything will be enforced

01:19:55So trust

01:19:56Is quite expensive

01:19:58Blockchain is

01:19:58The first time

01:19:59That we saw

01:20:00Some technology

01:20:01That can eliminate

01:20:03The cost

01:20:04Or reduce the cost

01:20:05Of trust

01:20:05Dramatically

01:20:06Magical things

01:20:07Will happen

01:20:08Trust may be expensive

01:20:10But it's also

01:20:11In short supply

01:20:11All around the globe

01:20:13People have been

01:20:14Losing faith

01:20:15In the media

01:20:15Institutions

01:20:16And governments

01:20:17So what if

01:20:19This new technology

01:20:19Could fix one of

01:20:20Society's biggest issues

01:20:22But the question remains

01:20:23What if you are cheated

01:20:25What if your password

01:20:26Is stolen

01:20:27And the money

01:20:28The contracts

01:20:29Your identity

01:20:30Is gone

01:20:31If code is law

01:20:35Who administers justice

01:20:39Aren't you worried

01:20:43That the promise

01:20:44Of decentralizing power

01:20:45Is kind of in jeopardy

01:20:46With you

01:20:47And Charlie

01:20:48And Vitalik

01:20:48And Craig

01:20:49As such central figureheads

01:20:52Yeah I really wish

01:20:54There weren't

01:20:54Public figures

01:20:56Or leaders

01:20:56I want everyone

01:20:57To lead themselves

01:20:58But sadly

01:20:59That's not the world

01:21:00We live in

01:21:00If you're gonna look

01:21:01To a leader

01:21:01Choose your leader wisely

01:21:03But just how different

01:21:07Are they from our current

01:21:08Political

01:21:08Financial

01:21:09And business leaders

01:21:10Are their systems

01:21:11Really resistant

01:21:12To corruption

01:21:13Immune to manipulation

01:21:14And worthy

01:21:15Of our trust

01:21:16Maybe that's why

01:21:18The best bet

01:21:19Is on the only project

01:21:20Without a figurehead

01:21:21Bitcoin doesn't care

01:21:23About human drama

01:21:24Bad press

01:21:25Or what anyone thinks

01:21:27Yeah sure

01:21:28It hasn't succeeded

01:21:29As a global currency yet

01:21:31But in the past decade

01:21:32It has been

01:21:33The world's best performing

01:21:34Financial asset

01:21:35So we're back

01:21:37To where we started

01:21:38The genius

01:21:39Who vanished

01:21:40With Satoshi

01:21:43Being gone from Bitcoin

01:21:44Bitcoin

01:21:45Is really a very

01:21:46Decentralized

01:21:47Network and currency

01:21:49He was intelligent

01:21:50Enough to know

01:21:51That

01:21:51A system without a father

01:21:54Was gonna be much more robust

01:21:55Than a system with a father

01:21:57No father maybe

01:22:00But without leaving a will

01:22:01The kids are now fighting

01:22:03Over the meaning

01:22:04Of his invention

01:22:04And the inheritance

01:22:06Projecting their fears

01:22:07And their fantasies

01:22:09Onto his legacy

01:22:10For some

01:22:14It's money for the internet

01:22:15That can replace middlemen

01:22:17And bank the unbanked

01:22:19And maybe a tool

01:22:20For illicit trade

01:22:21Or is it digital gold

01:22:23A totally new asset class

01:22:24A bet against the bankers

01:22:26An insurance against inflation

01:22:28Protection from corrupt politicians

01:22:31And a weapon against the state

01:22:33Maybe the end of money

01:22:35As we know it

01:22:36For some entrepreneurs

01:22:38It represents a shortcut

01:22:39To fund their dreams

01:22:40A platform for fairer finance

01:22:43Which is why incumbents fight it

01:22:45Some say public blockchains are just slow

01:22:48And useless databases

01:22:49While big business is busy building private blockchains

01:22:53To boost efficiency

01:22:54Or maybe this decentralized technology

01:22:57Is a new protocol layer for the internet

01:22:59Upon which we can build a better web

01:23:01To dethrone the tech giants

01:23:03Reclaim free speech

01:23:05Protect online identities

01:23:07And facilitate free trade

01:23:09In a borderless digital economy

01:23:11Oh, and a tool to rebuild trust in our societies

01:23:13And yes, maybe even save the planet

01:23:17That's a never-ending list of cryptopian ideas

01:23:21Isn't this a bit too much to ask of a nine-page document?

01:23:28Yeah, sure

01:23:36The internet and the web started out as white papers too

01:23:39But it took decades

01:23:40Before its infrastructure was built

01:23:42Became user-friendly

01:23:44And ready to scale globally

01:23:46We kind of domesticate

01:23:47The wild potential of technologies

01:23:50Into what's familiar

01:23:51And we dramatically underestimate

01:23:53Or under-imagine

01:23:54What that technology may eventually do

01:23:57It'll be the users

01:23:58Maybe billions of them

01:23:59Who will adopt this technology

01:24:01Without even knowing

01:24:02What a blockchain is

01:24:03Or how it works

01:24:04Because here's the thing

01:24:07The average users

01:24:09Don't care about the wires

01:24:10That move their money quicker

01:24:11Don't know about the software

01:24:13That moves this movie

01:24:14Or that picture

01:24:15What will move them

01:24:17Are services

01:24:18That'll make the days a little brighter

01:24:21Their chores a little lighter

01:24:23And their lives a little

01:24:25Richer

01:24:27Who's got a suit

01:24:30Dude's got a tie

01:24:33And a big smile

01:24:34And his pigeon means

01:24:35Some blockchain

01:24:36Some blockchain's a broken

01:24:38Do we need any stroke

01:24:39There's a pain in my brain

01:24:40And I'm going insane

01:24:41I don't want no blockchain

01:24:43That one place

01:24:44Chet said he's there

01:24:45Supposed to spot a press

01:24:46The price of this coin

01:24:48Just triple

01:24:48I just stand to the ether

01:24:50And take a breather

01:24:51Cause I don't wanna cause a ripple

01:24:53Don't wanna cause a ripple

01:24:56I won't trust it

01:24:58With my money

01:25:00Will never trust it

01:25:03With my life

01:25:05Well I have been told

01:25:09That my life is controlled

01:25:11But the big point ain't for

01:25:15That guy speaks cold

01:25:38Runs a full note

01:25:40This is new money production

01:25:42Talk redwoods of illicit goods

01:25:44This is a weapon of math destruction

01:25:47This is a weapon of math destruction

01:25:50That lady's creeps on her feet

01:25:53Late in her tits

01:25:54As she takes on the haters

01:25:56But nothing can break her

01:25:57The wealth could be much safer

01:25:59And our freedom quite greater

01:26:01And it's all in this white paper

01:26:05All in this white paper

01:26:07I don't trust it

01:26:09With my money

01:26:10I don't trust it

01:26:12With my money

01:26:13I don't trust it

01:26:14With my life

01:26:15I don't trust it

01:26:16With my life

01:26:17My dollars are gold

01:26:19They'll let me roll

01:26:21And Bitcoin is gold

01:26:23And Bitcoin is gold

01:26:25Bitcoin is gold

01:26:27Bitcoin is gold

01:26:30Let's go

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