1
00:00:23,320 --> 00:00:27,840
So here I have two devices
and I will transfer one dollar

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00:00:27,841 --> 00:00:31,840
from this device to this
device instantaneously.

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Enter the amount.

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00:00:38,800 --> 00:00:40,000
And send.

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00:00:42,720 --> 00:00:45,320
I'm seeing the transaction now.

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00:00:48,880 --> 00:00:50,200
And there it is.

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00:00:52,120 --> 00:00:54,200
What you just witnessed
is what looks like

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00:00:54,201 --> 00:00:57,720
a standard financial
transaction.

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00:00:57,721 --> 00:00:59,600
Money was transferred
electronically

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00:00:59,601 --> 00:01:02,640
from one account to another.

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00:01:02,641 --> 00:01:06,320
But while it appears like
an ordinary bank transfer,

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00:01:06,321 --> 00:01:09,640
it may perhaps be the most
revolutionary technology

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00:01:09,641 --> 00:01:13,440
you're likely to see
in your lifetime.

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This technology
is called Bitcoin.

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00:01:22,059 --> 00:01:26,645
MAGIC MONEY:
THE BITCOIN REVOLUTION

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00:01:26,646 --> 00:01:28,199
Subrip: Pix

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Money makes possible the
exchange of many different

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goods and services among
many different people.

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00:01:35,201 --> 00:01:37,440
Wherever we go, we
see money being used

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00:01:37,441 --> 00:01:39,440
as a medium of exchange.

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00:01:43,600 --> 00:01:47,120
Money is at
the core of our existence.

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Everyday we transact
with one another.

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Currently almost all of
our daily transactions

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00:01:54,441 --> 00:01:56,200
involve a third party.

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00:01:57,720 --> 00:02:02,000
A bank, credit card company,
or remittance provider.

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00:02:02,001 --> 00:02:04,400
And ultimately it's
these institutions that

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00:02:04,401 --> 00:02:07,720
carry out the transaction
on our behalf.

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00:02:09,080 --> 00:02:12,360
This is until the
invention of Bitcoin.

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Bitcoin is truly one of
the most important inventions

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00:02:18,120 --> 00:02:20,200
ever in the history
of humankind.

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That's how big of an impact
it's gonna have on our lives.

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00:02:23,721 --> 00:02:26,120
And it sounds really
difficult and complicated

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00:02:26,121 --> 00:02:28,120
and hard to understand
hearing about it.

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00:02:28,121 --> 00:02:30,880
If you'd only heard about
email it would sound difficult

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00:02:30,881 --> 00:02:32,640
and complicated and hard to use.

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00:02:32,720 --> 00:02:36,200
Bitcoin is literally
easier to use than email.

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00:02:39,000 --> 00:02:42,600
So what
exactly is Bitcoin?

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00:02:42,601 --> 00:02:46,640
Well for starters, Bitcoin
isn't actually a coin.

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00:02:48,120 --> 00:02:50,640
Bitcoin is a new form of money.

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00:02:51,880 --> 00:02:55,160
A currency that lives
solely on the internet,

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00:02:55,161 --> 00:02:59,320
one that some have even
called magic internet money.

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00:03:00,360 --> 00:03:02,640
I think part of the
confusion is that Bitcoin

43
00:03:02,840 --> 00:03:04,720
is actually two
different things.

44
00:03:04,721 --> 00:03:08,400
It's both a currency
and a payment network.

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00:03:08,401 --> 00:03:10,640
And we've never had
one thing that's

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00:03:10,641 --> 00:03:12,640
both of those at the same time.

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00:03:12,641 --> 00:03:16,000
So the dollar is a currency,
but it's not a payment network.

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00:03:16,001 --> 00:03:18,000
Paypal and Visa are
payment networks,

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00:03:18,001 --> 00:03:19,440
but they're not currencies.

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00:03:19,441 --> 00:03:21,880
Bitcoin is both of those
things at the same time,

51
00:03:22,000 --> 00:03:24,960
but it has this other property,
and that other property

52
00:03:25,120 --> 00:03:27,720
is that it can instantly
be teleported anywhere

53
00:03:27,800 --> 00:03:30,893
in the world just like
that almost for free.

54
00:03:30,974 --> 00:03:33,440
And there's nothing that
anybody can do to block

55
00:03:33,560 --> 00:03:36,160
these teleportation's,
there's nothing anybody can do

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00:03:36,200 --> 00:03:38,120
to intercept it,
and if you're careful

57
00:03:38,200 --> 00:03:40,239
about how you use
Bitcoin you can do these

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00:03:40,360 --> 00:03:41,720
teleportations anonymously.

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00:03:41,840 --> 00:03:44,160
So with a push
of a button, you can pay

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00:03:44,200 --> 00:03:46,520
anyone in the
world or receive payment

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00:03:46,720 --> 00:03:48,480
from anyone, anywhere
in the world.

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00:03:51,520 --> 00:03:54,800
In the aftermath
of the global financial crisis

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00:03:54,801 --> 00:03:58,360
an author using the
pseudonym Satoshi Nakamoto

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00:03:58,361 --> 00:04:02,640
posted a nine page document
onto an online forum.

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00:04:02,641 --> 00:04:05,640
The document titled
Bitcoin: a Peer-to-Peer

66
00:04:05,641 --> 00:04:08,880
Electronic Cash System would
soon become the building block

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00:04:08,881 --> 00:04:13,080
for what is today the
first fully working concept

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00:04:13,081 --> 00:04:15,000
of decentralized money.

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These are the daily candles
of Bitcoin just in the

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backdrop, but I want to talk
about these trend lines.

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You've seen them on
other presentations,

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00:04:25,480 --> 00:04:26,480
even earlier today.

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I started out working at
Bear Stearns back in 2007,

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00:04:30,480 --> 00:04:33,480
so about a year and a half or
so before the financial crisis

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00:04:33,560 --> 00:04:34,640
really started to hit.

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00:04:34,720 --> 00:04:38,320
And after Bear Stearns I joined
JP Morgan, where I became

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00:04:38,321 --> 00:04:40,960
a VP and that was my last job.

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00:04:40,961 --> 00:04:45,160
All of these jobs were either
mid-town or down-town Manhattan.

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00:04:46,000 --> 00:04:48,400
Tone Vays
is a Wall Street veteran.

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00:04:49,080 --> 00:04:53,320
A former VP at JP Morgan, he
now spends his time studying

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00:04:53,321 --> 00:04:56,480
and educating audiences
about Bitcoin.

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00:04:59,360 --> 00:05:03,000
Bitcoin is generally
difficult to explain.

83
00:05:03,001 --> 00:05:05,880
You want to try and break it
down as simple as you can.

84
00:05:05,881 --> 00:05:10,360
So the simplest way is
basically it's like a message,

85
00:05:10,361 --> 00:05:12,440
it's a digital message
that you're passing.

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00:05:12,560 --> 00:05:14,880
And normally we're
all used to computers.

87
00:05:14,881 --> 00:05:17,960
We're all sending emails,
we're all sending pictures,

88
00:05:17,961 --> 00:05:20,440
but you're always
sending a copy.

89
00:05:20,441 --> 00:05:22,720
Anytime you hit the send
button in a computer

90
00:05:22,840 --> 00:05:26,360
you always retain a copy, you
always retain the original.

91
00:05:26,440 --> 00:05:29,000
And when it comes to financial
transactions, you hit

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00:05:29,120 --> 00:05:31,880
the send button and you have
an intermediary, the bank,

93
00:05:31,960 --> 00:05:35,640
that is moving money from
one account to another.

94
00:05:35,641 --> 00:05:38,000
And this is the problem
that Bitcoin solved.

95
00:05:38,001 --> 00:05:41,560
It was able to take something
digital and when you hit

96
00:05:41,561 --> 00:05:45,000
the send button, you're not
actually sending a copy,

97
00:05:45,001 --> 00:05:48,480
you're actually sending
a digital object.

98
00:05:50,720 --> 00:05:52,720
At
It's core Bitcoin

99
00:05:52,721 --> 00:05:55,880
is basically a new
monetary system.

100
00:05:55,881 --> 00:05:59,640
However Bitcoin is unlike
any other system we've seen

101
00:05:59,641 --> 00:06:03,720
in the past because it isn't
centralized in one place.

102
00:06:05,200 --> 00:06:09,200
This decentralized nature of
the Bitcoin platform is one of

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00:06:09,201 --> 00:06:13,360
the things that make it so
unique and world changing.

104
00:06:16,480 --> 00:06:18,120
We're all familiar with Paypal

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00:06:18,121 --> 00:06:20,720
or Visa or bank of whatever.

106
00:06:20,721 --> 00:06:23,600
All of these traditional
services that we're used to

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00:06:23,601 --> 00:06:26,600
control who's allowed to
have an account, who can send

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00:06:26,601 --> 00:06:28,960
money to who from what
country's users can send

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00:06:28,961 --> 00:06:31,200
money to other country's users.

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00:06:31,201 --> 00:06:33,600
With Bitcoin there
is no entity that's

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00:06:33,601 --> 00:06:34,994
controlling any of that.

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00:06:35,075 --> 00:06:38,239
There's just this software
protocol that anyone can write

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00:06:38,360 --> 00:06:41,000
software to interact with
and then anyone can install

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00:06:41,120 --> 00:06:43,520
that software on their
phone or on their computer

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00:06:43,600 --> 00:06:46,239
and once they have the
software installed they can now

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00:06:46,360 --> 00:06:49,000
interact with anyone else
anywhere in the entire world

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00:06:49,120 --> 00:06:52,400
that's also using
the Bitcoin software.

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00:06:52,401 --> 00:06:55,360
This software
that runs the Bitcoin protocol

119
00:06:55,361 --> 00:06:57,640
is commonly called a wallet.

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00:06:57,641 --> 00:07:00,720
A digital purse which
stores and allows the holder

121
00:07:00,721 --> 00:07:04,400
to move Bitcoins from
one wallet to another.

122
00:07:05,520 --> 00:07:08,200
The Bitcoin protocol
is open source,

123
00:07:08,201 --> 00:07:10,320
meaning that the
programming code is

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00:07:10,321 --> 00:07:14,000
freely available to add
to and redistribute.

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00:07:15,360 --> 00:07:18,200
In this way, similar to
anyone being able to add a new

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00:07:18,201 --> 00:07:21,640
website to the world wide
web, programmers are able

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00:07:21,641 --> 00:07:25,200
to add new products to
the Bitcoin network.

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00:07:29,720 --> 00:07:32,640
We have Jason for whom
this is very late evening

129
00:07:32,800 --> 00:07:35,640
because he is in Australia
and we're about to do

130
00:07:35,641 --> 00:07:39,640
Jason's first Bitcoin
transaction over Skype

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00:07:39,720 --> 00:07:43,800
as our medium, so everyone can
see how quick and easy it is.

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00:07:43,880 --> 00:07:47,400
On my end I will hit send.

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00:07:48,440 --> 00:07:51,000
And Jason is gonna hit request.

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00:07:52,400 --> 00:07:55,640
So when he hits request, a
QR code should have displayed

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00:07:55,641 --> 00:07:57,600
in the middle of your screen.

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00:07:57,601 --> 00:08:00,640
And he's gonna put it up
the camera of Skype so I can

137
00:08:00,641 --> 00:08:04,560
scan it with the camera
in my cell phone.

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00:08:04,561 --> 00:08:09,000
Alright I see the QR code,
my phone is trying to scan it

139
00:08:09,239 --> 00:08:10,200
and there it is.

140
00:08:10,320 --> 00:08:11,720
I scanned it.

141
00:08:11,721 --> 00:08:15,640
So I feel kinda generous,
let's send Jason five dollars.

142
00:08:17,120 --> 00:08:21,120
So I have just sent Jason
five dollars in Bitcoin

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00:08:22,560 --> 00:08:25,800
and let me know when it's
registering on your end

144
00:08:25,801 --> 00:08:30,200
that you have five
dollars worth of Bitcoin.

145
00:08:31,880 --> 00:08:33,200
And there it is.

146
00:08:33,201 --> 00:08:36,640
Okay so that took
about 10 to 15 seconds.

147
00:08:44,080 --> 00:08:46,840
Bitcoin enables
users to send and receive money

148
00:08:46,841 --> 00:08:51,520
instantly without the
involvement of a third party.

149
00:08:51,521 --> 00:08:54,480
This digital breakthrough
allows the user to effectively

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00:08:54,481 --> 00:08:56,320
become their own bank.

151
00:08:57,720 --> 00:09:00,640
This is a complex idea to
handle, but the possibilities

152
00:09:00,641 --> 00:09:04,200
of this new bank-less
currency are enormous.

153
00:09:13,360 --> 00:09:16,000
With the exception of
actually handing physical cash

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00:09:16,080 --> 00:09:18,560
to you, generally we have
to rely on third parties

155
00:09:18,679 --> 00:09:21,160
for lots of different
payments, be it credit cards

156
00:09:21,200 --> 00:09:23,640
or wire transfers
internationally or even sort of

157
00:09:23,720 --> 00:09:25,160
keeping cash under your bed,

158
00:09:25,200 --> 00:09:27,360
storing large amounts
of cash we use banks.

159
00:09:27,440 --> 00:09:29,560
Bitcoin allows
us to do all of those things

160
00:09:29,640 --> 00:09:31,160
without any third parties.

161
00:09:31,200 --> 00:09:33,200
So in that sense we
can be our own bank,

162
00:09:33,320 --> 00:09:34,440
our own
payment system,

163
00:09:34,520 --> 00:09:36,520
our own
international wire system,

164
00:09:36,521 --> 00:09:37,759
our own
remittance system,

165
00:09:37,840 --> 00:09:39,919
we can do all these
things without relying

166
00:09:40,039 --> 00:09:41,200
on any third parties.

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00:09:41,360 --> 00:09:44,480
That's what Bitcoin
allows us to do.

168
00:09:46,800 --> 00:09:49,720
Before Bitcoin all of these
companies like Paypal and Visa

169
00:09:49,840 --> 00:09:52,640
and Bank of America and, you
know, any business, they had

170
00:09:52,720 --> 00:09:55,520
a ledger that kept track of
their account balances.

171
00:09:55,521 --> 00:09:57,640
So Paypal has a ledger
that keeps track of

172
00:09:57,641 --> 00:09:59,640
who has how much money
in each account

173
00:09:59,641 --> 00:10:01,960
and that ledger is
stored on Paypal servers

174
00:10:01,961 --> 00:10:04,320
in Paypal's data
centre somewhere.

175
00:10:04,321 --> 00:10:06,640
And before Bitcoin,
people thought that it

176
00:10:06,641 --> 00:10:08,640
was impossible, the
mathematicians

177
00:10:08,720 --> 00:10:09,960
and computer scientists

178
00:10:09,961 --> 00:10:12,200
thought it was
impossible to have consensus

179
00:10:12,201 --> 00:10:14,080
on a distributed
ledger like this.

180
00:10:14,081 --> 00:10:16,560
But what Bitcoin did is
came along and figured out

181
00:10:16,640 --> 00:10:18,560
how to keep track of this
ledger

182
00:10:18,640 --> 00:10:19,919
of who has what Bitcoins.

183
00:10:19,920 --> 00:10:22,360
But instead of the ledger
being on one data centre

184
00:10:22,480 --> 00:10:25,200
it's on everybody's computer
across the entire planet

185
00:10:25,239 --> 00:10:27,480
that's running the
Bitcoin network including

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00:10:27,560 --> 00:10:28,440
my laptop here.

187
00:10:28,520 --> 00:10:32,279
I have a full copy of the
entire Bitcoin ledger.

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00:10:32,400 --> 00:10:35,000
This public
ledger known as the block-chain

189
00:10:35,160 --> 00:10:39,320
is what could make Bitcoin a
financial game changer.

190
00:10:40,720 --> 00:10:44,200
Bitcoin is what is known
as a cryptocurrency

191
00:10:44,201 --> 00:10:47,640
meaning that it's a digital
currency in which encryption

192
00:10:47,641 --> 00:10:51,200
is used to regulate the
creation of new units

193
00:10:51,201 --> 00:10:54,000
and verify the
transfer of funds.

194
00:10:54,960 --> 00:10:56,600
New Bitcoins come into existence

195
00:10:56,601 --> 00:11:00,000
through a process called mining.

196
00:11:00,001 --> 00:11:03,720
A miner is a person or entity
who runs a very powerful

197
00:11:03,721 --> 00:11:07,320
computer in an effort to
solve a complex mathematical

198
00:11:07,321 --> 00:11:09,320
puzzle known as a block.

199
00:11:10,640 --> 00:11:15,520
Miners around the world compete
to solve or close a block

200
00:11:15,521 --> 00:11:18,200
and are rewarded with
newly generated Bitcoins

201
00:11:18,201 --> 00:11:20,080
if they're successful.

202
00:11:21,039 --> 00:11:23,960
All transactions that travel
though the Bitcoin network

203
00:11:23,961 --> 00:11:27,600
are pieces of this complex
mathematical puzzle.

204
00:11:27,720 --> 00:11:30,200
So when a miner solves a
puzzle, they're actually

205
00:11:30,201 --> 00:11:35,080
verifying the integrity of
each and every transaction.

206
00:11:43,440 --> 00:11:44,480
Welcome.

207
00:11:48,120 --> 00:11:51,720
This is one giant
abandoned recycling plant.

208
00:11:53,200 --> 00:11:55,960
We've got incinerators over
there, those two big silos.

209
00:11:57,320 --> 00:11:58,919
Right around this wall we have

210
00:11:59,039 --> 00:12:01,720
a megawatt worth
of solar panels.

211
00:12:04,600 --> 00:12:05,800
It's a lot.

212
00:12:05,801 --> 00:12:09,200
Um that's about as much
as what we consume.

213
00:12:10,120 --> 00:12:11,720
So we're gonna be able to offset

214
00:12:11,800 --> 00:12:14,480
our electrical costs completely.

215
00:12:18,840 --> 00:12:24,320
This is a work in progress
but a Bitcoin mine is a group

216
00:12:24,480 --> 00:12:27,480
of computers that contribute
it's processing power

217
00:12:27,481 --> 00:12:29,120
to facilitating
Bitcoin transfers

218
00:12:29,121 --> 00:12:30,880
and the security of the network.

219
00:12:30,960 --> 00:12:33,440
Yeah it is one big super
computer and all of these

220
00:12:33,560 --> 00:12:36,360
individual computers are
kind of throwing guesses

221
00:12:36,361 --> 00:12:38,800
at this mathematical problem.

222
00:12:39,720 --> 00:12:41,440
And it's a very
difficult problem,

223
00:12:41,441 --> 00:12:44,120
it takes lots and lots
of computers to guess it.

224
00:12:44,121 --> 00:12:48,960
Once that guess is correct,
that is sent to all the rest

225
00:12:49,080 --> 00:12:51,800
of the computers and with
that answer they record

226
00:12:51,960 --> 00:12:55,320
all the transactions that have
been done up to that point.

227
00:12:55,321 --> 00:12:58,320
It's a very secure system
for facilitating transfers,

228
00:12:58,321 --> 00:13:01,000
recording transfers, and
making sure that no kind of

229
00:13:01,001 --> 00:13:03,400
shady work has been done.

230
00:13:03,480 --> 00:13:06,239
Because there's some methods
in financial transactions

231
00:13:06,320 --> 00:13:09,360
where you can double send and
this whole block-chain thing

232
00:13:09,361 --> 00:13:13,520
is one great method of making
sure that doesn't happen.

233
00:13:15,200 --> 00:13:18,200
Say if Alice wants
to send Bob an email.

234
00:13:18,201 --> 00:13:21,880
What would happen under the
hood is that along the path

235
00:13:21,881 --> 00:13:25,000
of the email across the
network, her email gets copied

236
00:13:25,001 --> 00:13:29,320
in many places of the network
and eventually the final copy

237
00:13:29,321 --> 00:13:31,200
will be relayed to Bob.

238
00:13:33,120 --> 00:13:36,480
That's how email works, that's
how digital transfers work,

239
00:13:36,600 --> 00:13:38,840
and that's how it should
work for the majority

240
00:13:38,919 --> 00:13:40,440
of digital transfers.

241
00:13:40,520 --> 00:13:43,200
That's well and good,
however in the case of money,

242
00:13:43,279 --> 00:13:46,339
that would be disastrous
if that were to be the way

243
00:13:46,420 --> 00:13:48,200
that money was
transferred digitally.

244
00:13:48,201 --> 00:13:50,784
You don't want
copies of the same

245
00:13:50,865 --> 00:13:53,545
dollar bill to exist
on the network.

246
00:13:53,635 --> 00:13:58,435
That would ruin the
scarcity premise of money.

247
00:13:59,560 --> 00:14:01,960
And so this was the problem
that Satoshi Nakamoto

248
00:14:02,039 --> 00:14:05,200
tackled with the
creation of Bitcoin.

249
00:14:05,281 --> 00:14:08,200
And so what happens with Bitcoin
on the Bitcoins block-chain

250
00:14:08,201 --> 00:14:12,000
is that when Alice wants
to send one Bitcoin to Bob,

251
00:14:12,080 --> 00:14:14,560
she creates a transaction
and that transaction gets

252
00:14:14,640 --> 00:14:16,239
copied across the
entire network.

253
00:14:16,320 --> 00:14:18,679
However this is different
than a single email as

254
00:14:18,759 --> 00:14:21,160
that transaction has
embedded in it instructions

255
00:14:21,239 --> 00:14:23,880
to the rest of the network
that says, from here on out

256
00:14:23,960 --> 00:14:27,080
control over this Bitcoin
is now conferred to Bob

257
00:14:27,200 --> 00:14:29,646
and the rest of the
network honours that.

258
00:14:31,709 --> 00:14:34,960
One time I realized that
Bitcoin is really difficult

259
00:14:35,039 --> 00:14:37,679
for people to understand is
I spent the whole evening

260
00:14:37,759 --> 00:14:40,400
explaining Bitcoin to a
friend of mine and then I got

261
00:14:40,480 --> 00:14:42,919
home that night and she
posted on my Facebook page

262
00:14:43,000 --> 00:14:45,640
and she goes, yeah I was
thinking more about Bitcoins

263
00:14:45,720 --> 00:14:47,873
and you were explaining
Bitcoin mining.

264
00:14:47,960 --> 00:14:51,600
Does that mean that Bitcoins
are originally underground?

265
00:14:51,601 --> 00:14:55,240
I realized that Bitcoin's
a difficult concept

266
00:14:55,326 --> 00:14:58,261
for people to understand and
especially Bitcoin mining

267
00:14:58,342 --> 00:15:01,880
as well because Bitcoins are
not originally under ground.

268
00:15:03,119 --> 00:15:04,799
For new users Bitcoin

269
00:15:04,880 --> 00:15:08,232
can be a difficult
concept to understand.

270
00:15:08,320 --> 00:15:10,080
Bitcoins aren't physical

271
00:15:10,081 --> 00:15:12,800
and they certainly
aren't underground.

272
00:15:12,801 --> 00:15:15,948
However, there are some
interesting similarities between

273
00:15:16,029 --> 00:15:19,720
Bitcoin and a precious metal
that is found underground.

274
00:15:21,896 --> 00:15:23,256
Gold.

275
00:15:23,337 --> 00:15:25,079
Gold has been money and a store

276
00:15:25,160 --> 00:15:27,959
of value for thousands of years.

277
00:15:28,898 --> 00:15:32,146
Today gold is mined
all over the world.

278
00:15:33,428 --> 00:15:36,640
The amount of gold that can
be extracted from the ground

279
00:15:36,641 --> 00:15:40,167
decreases over the life
of a mine until eventually

280
00:15:40,248 --> 00:15:43,498
the mine is exhausted
of all of its gold.

281
00:15:44,670 --> 00:15:48,865
Bitcoin are also mined
in a similar fashion.

282
00:15:49,039 --> 00:15:52,326
The Bitcoin algorithm is
programmed so that the reward

283
00:15:52,407 --> 00:15:56,160
for mining new Bitcoins
is halved every four years

284
00:15:56,161 --> 00:15:59,720
until the year 2140
when all Bitcoins

285
00:15:59,721 --> 00:16:03,800
will have been deemed
to have been mined.

286
00:16:03,801 --> 00:16:06,784
Perhaps the mysterious
creator behind Bitcoin

287
00:16:06,865 --> 00:16:09,720
was trying to mimic
the attributes of gold

288
00:16:09,721 --> 00:16:13,307
almost as if to create a
digital gold coin which could be

289
00:16:13,388 --> 00:16:17,302
divided and then sent
instantly around the world.

290
00:17:13,080 --> 00:17:16,545
The creator of Bitcoin whoever
he is was a really, really,

291
00:17:16,626 --> 00:17:21,039
really smart guy and he
obviously liked maths a lot.

292
00:17:21,120 --> 00:17:23,720
And he sat down and did some
calculations and thought

293
00:17:23,800 --> 00:17:26,600
to himself if everybody in
the entire world were to start

294
00:17:26,679 --> 00:17:30,717
using Bitcoin, how many
Bitcoins would we need in order

295
00:17:30,798 --> 00:17:32,813
for that to be able to
accommodate everybody using

296
00:17:32,894 --> 00:17:34,359
Bitcoin for this.

297
00:17:34,440 --> 00:17:36,552
And each Bitcoin
can be divided down

298
00:17:36,633 --> 00:17:38,600
to 100 millionth of a Bitcoin.

299
00:17:38,601 --> 00:17:41,160
If everybody in the entire
world were to start using

300
00:17:41,241 --> 00:17:44,766
Bitcoin as their money, the
smallest unit of the Bitcoin,

301
00:17:44,847 --> 00:17:47,200
which is called the
Satoshi, it's 100 millionth

302
00:17:47,320 --> 00:17:51,013
of a Bitcoin, would still be
worth less than one US penny

303
00:17:51,094 --> 00:17:54,008
if the entire world were
to start using Bitcoin.

304
00:17:54,089 --> 00:17:57,639
So who is
this Satoshi Nakamoto?

305
00:17:57,720 --> 00:18:00,779
Two years after publishing
the white paper for the peer

306
00:18:00,860 --> 00:18:04,459
to peer electronic cash
system, this mysterious figure

307
00:18:04,540 --> 00:18:07,759
vanished never to
be heard from again.

308
00:18:07,840 --> 00:18:11,045
The only clues to his or
her identity can be found

309
00:18:11,126 --> 00:18:12,919
in the white paper.

310
00:18:13,000 --> 00:18:16,107
Some speculate he or
she is of British origin

311
00:18:16,188 --> 00:18:19,400
due to the writings
containing some British slang.

312
00:18:19,481 --> 00:18:22,701
Others believe that rather
than being one person,

313
00:18:22,782 --> 00:18:26,459
Satoshi was a group of
hackers working in concert

314
00:18:26,540 --> 00:18:29,217
to create a new monetary
system which would

315
00:18:29,298 --> 00:18:31,782
decentralize money
as we know it.

316
00:19:17,743 --> 00:19:21,080
It's very interesting
who Satoshi is.

317
00:19:21,160 --> 00:19:23,412
There's lots of
speculation especially

318
00:19:23,493 --> 00:19:27,188
among the very early
people in Bitcoin.

319
00:19:27,480 --> 00:19:29,120
But what difference does it make

320
00:19:29,121 --> 00:19:31,239
whether we know who
created Bitcoin.

321
00:19:31,360 --> 00:19:35,138
I don't know that it
makes any difference.

322
00:19:35,219 --> 00:19:37,771
There's lots of stuff that
we use that we don't know

323
00:19:37,852 --> 00:19:41,810
who created it and yet
it gives us a lot of

324
00:19:41,891 --> 00:19:44,560
advantages in our day
to day activities.

325
00:19:45,279 --> 00:19:47,474
I have no idea who Satoshi is.

326
00:19:47,555 --> 00:19:50,576
We know very little about
Satoshi and so he could be

327
00:19:50,657 --> 00:19:52,239
at an event, someone we know,

328
00:19:52,320 --> 00:19:54,204
someone I've spoken to, he
could be a friend of mine

329
00:19:54,285 --> 00:19:54,790
for all I know.

330
00:19:54,871 --> 00:19:56,974
I don't know who it is and I
don't know if we'll ever know

331
00:19:57,055 --> 00:19:59,120
but it's a fun game.

332
00:19:59,121 --> 00:20:00,915
Am I Satoshi?

333
00:20:03,713 --> 00:20:06,633
I don't think I'll
answer that one.

334
00:20:10,329 --> 00:20:13,320
Regardless of
the true identity of Satoshi,

335
00:20:13,321 --> 00:20:16,381
what he or she has invented
could have profound

336
00:20:16,462 --> 00:20:20,485
effects on how our world
evolves into the future.

337
00:20:31,868 --> 00:20:34,201
Because Bitcoin
enables the user to act

338
00:20:34,282 --> 00:20:37,685
as their own bank, in
essence it frees the user

339
00:20:37,766 --> 00:20:41,320
from the traditional
gatekeepers to their wealth.

340
00:21:11,532 --> 00:21:14,240
We all use
keys in our daily lives.

341
00:21:14,321 --> 00:21:18,907
Keys allow us to access and
control our valued possessions.

342
00:21:18,988 --> 00:21:22,919
They also protect our
valuables from being stolen.

343
00:21:23,000 --> 00:21:25,560
Take your car as an example.

344
00:21:25,561 --> 00:21:27,440
Holding the keys to your car

345
00:21:27,441 --> 00:21:30,440
allows you access to
it whenever you wish.

346
00:21:30,441 --> 00:21:33,160
But suppose you've had
a few too many to drink

347
00:21:33,161 --> 00:21:36,400
and your loyal friend
confiscates your keys from you.

348
00:21:36,401 --> 00:21:39,935
The car may still be yours,
but now you no longer

349
00:21:40,016 --> 00:21:43,704
control it and must
hail a ride home.

350
00:21:43,880 --> 00:21:46,880
The same can be said
of our finances.

351
00:21:46,881 --> 00:21:48,740
Although you may
have the debit card

352
00:21:48,821 --> 00:21:50,875
and password to
your bank account,

353
00:21:51,063 --> 00:21:54,400
the funds aren't directly
in your possession.

354
00:21:54,401 --> 00:21:57,231
Every time you make a
withdrawal or transfer from

355
00:21:57,312 --> 00:22:00,403
your bank account, the
bank is actually acting

356
00:22:00,484 --> 00:22:04,239
on your behalf and
moving the funds for you.

357
00:22:04,320 --> 00:22:08,305
This is where bit is
fundamentally different.

358
00:22:09,586 --> 00:22:12,600
Bitcoin enables an
individual to hold

359
00:22:12,601 --> 00:22:15,720
the private keys of
their own wealth.

360
00:22:15,721 --> 00:22:19,083
So with pretty much every
asset that we have out there

361
00:22:19,164 --> 00:22:23,911
we don't directly hold
the dominion or control

362
00:22:23,992 --> 00:22:25,360
over that asset.

363
00:22:25,476 --> 00:22:30,310
For example the Royal Bank
of Scotland, they had 700,000

364
00:22:30,391 --> 00:22:34,639
accounts, ATMs, just went
down for the weekend.

365
00:22:34,720 --> 00:22:38,528
Nobody could access ATMs,
couldn't get money out.

366
00:22:38,609 --> 00:22:41,794
You have a credit card or
a debit card and it gets

367
00:22:41,875 --> 00:22:45,349
turned off because of
suspected fraud or you did

368
00:22:45,430 --> 00:22:48,250
a charge in an unusual location.

369
00:22:48,398 --> 00:22:50,200
Well guess what, the
credit card company holds

370
00:22:50,201 --> 00:22:54,720
those private keys, they get
to make the choice, not you.

371
00:22:54,721 --> 00:22:57,880
Bitcoin is very, very
different in this regard.

372
00:22:57,881 --> 00:23:01,560
It is built on public
private key encryption.

373
00:23:02,008 --> 00:23:05,708
And what that means is
that you send Bitcoins to

374
00:23:05,789 --> 00:23:09,786
the public key and then in
order to send the Bitcoins

375
00:23:09,867 --> 00:23:13,450
you have to be able to
sign with the private key

376
00:23:13,531 --> 00:23:16,672
where the Bitcoins
currently reside.

377
00:23:16,840 --> 00:23:20,000
And that literally is a number,

378
00:23:20,001 --> 00:23:21,640
that private key is a number.

379
00:23:21,641 --> 00:23:23,640
Bitcoin, nobody
gets to turn it off.

380
00:23:23,641 --> 00:23:25,160
If you have the private key,

381
00:23:25,161 --> 00:23:27,840
you get to access it and use it.

382
00:23:28,703 --> 00:23:31,641
With your Bitcoin wallets
that there's associated

383
00:23:31,722 --> 00:23:34,160
what are called private
keys, okay, and these are

384
00:23:34,161 --> 00:23:35,133
literally what they sound like.

385
00:23:35,214 --> 00:23:38,193
They are private keys that
can open and unlock your,

386
00:23:38,274 --> 00:23:40,074
access to your funds.

387
00:23:41,258 --> 00:23:43,599
But let's be clear, if you
lose any of your private keys

388
00:23:43,680 --> 00:23:47,200
you lose access to your
funds, simple as that.

389
00:23:49,600 --> 00:23:51,278
So we just bought
some Bitcoins

390
00:23:51,359 --> 00:23:52,880
out of a local Bitcoin ATM.

391
00:23:52,881 --> 00:23:54,505
And so what actually comes out

392
00:23:54,586 --> 00:23:56,480
is what we call a cold wallet.

393
00:23:56,481 --> 00:23:59,200
It's a little piece of
paper with two squares on it

394
00:23:59,201 --> 00:24:01,720
or two things that look
like Roche inkblot tests

395
00:24:02,039 --> 00:24:04,320
and a bunch of alpha
numerics underneath each.

396
00:24:04,321 --> 00:24:06,817
Now the top is the public
key which is what people

397
00:24:06,898 --> 00:24:09,279
would use to send
Bitcoins to this address.

398
00:24:09,750 --> 00:24:12,763
And the bottom one is the
private key which is what

399
00:24:12,844 --> 00:24:15,763
you would use to scan
in order to retrieve

400
00:24:15,844 --> 00:24:17,360
Bitcoins from this address.

401
00:24:17,562 --> 00:24:19,856
Now it's very important to
note that, that private key

402
00:24:19,937 --> 00:24:22,208
is something that you
really shouldn't be showing

403
00:24:22,289 --> 00:24:24,630
around everywhere because
whoever scans this first

404
00:24:24,711 --> 00:24:26,888
will be able to take the
Bitcoins off this address.

405
00:24:26,969 --> 00:24:29,661
Also if you were to happen
to lose this piece of paper,

406
00:24:29,742 --> 00:24:31,560
then you've actually
essentially lost your Bitcoins

407
00:24:31,641 --> 00:24:34,109
because nobody else has a
copy of the private key.

408
00:24:34,200 --> 00:24:36,560
Right now there actually
is some Bitcoins on this

409
00:24:36,641 --> 00:24:38,653
address so if you're seeing
this for the first time,

410
00:24:38,734 --> 00:24:40,960
you may be able to
scan this off yourself

411
00:24:41,070 --> 00:24:43,880
and take the Bitcoins
for yourself.

412
00:24:56,641 --> 00:24:59,000
So here is a Satori coin.

413
00:24:59,001 --> 00:25:03,976
There is a value of
0.001 Bitcoin inside.

414
00:25:04,160 --> 00:25:08,732
In today's exchange rate

415
00:25:08,733 --> 00:25:12,351
that would mean about 45 cents.

416
00:25:12,640 --> 00:25:18,516
So it's very minimal amount
but it is true Bitcoin inside.

417
00:25:19,320 --> 00:25:24,364
Now how to redeem the
value out of this token,

418
00:25:24,445 --> 00:25:28,172
one would have to peel
off the hologram sticker

419
00:25:28,640 --> 00:25:31,720
in the back, here we go,

420
00:25:31,721 --> 00:25:36,469
and then a QR code
would be exposed

421
00:25:36,867 --> 00:25:41,000
and this QR code is the
private key information

422
00:25:41,081 --> 00:25:43,609
which is essentially
like a password.

423
00:25:44,344 --> 00:25:48,343
And with this private key

424
00:25:48,344 --> 00:25:51,336
and only with this private key

425
00:25:51,766 --> 00:25:56,208
one can redeem, you
can import that value

426
00:25:56,289 --> 00:25:58,992
to your Bitcoin wallet.

427
00:26:01,695 --> 00:26:03,856
Anything that's physical
has a very strong sense

428
00:26:03,937 --> 00:26:08,567
of authority or authenticity
and to make the barrier

429
00:26:08,648 --> 00:26:12,661
to entry to Bitcoin as low
as possible I think everyone

430
00:26:12,742 --> 00:26:14,747
working on the project felt
it was really important

431
00:26:14,828 --> 00:26:18,567
that someone could have
a part of Bitcoin that

432
00:26:18,648 --> 00:26:20,903
they can hold in their
hands that's portable

433
00:26:20,984 --> 00:26:24,200
and doesn't cost very
must to get started.

434
00:26:24,201 --> 00:26:27,320
It's kind of a low
commitment object.

435
00:26:29,351 --> 00:26:32,099
Because Bitcoin
is built on public private

436
00:26:32,180 --> 00:26:36,411
key encryption the entire work
flow for sending payments,

437
00:26:36,492 --> 00:26:39,935
particularly online, is
fundamentally different

438
00:26:40,016 --> 00:26:42,176
from that of credit cards.

439
00:26:43,720 --> 00:26:45,755
Credit cards were
never built to be used

440
00:26:45,836 --> 00:26:47,039
on the internet in
the first place.

441
00:26:47,120 --> 00:26:49,500
I mean when credit cards were
made there was no internet.

442
00:26:49,961 --> 00:26:54,450
So the pull system is that
you've given the authorization

443
00:26:54,531 --> 00:26:57,239
to the merchant or the
credit card issuer to pull

444
00:26:57,320 --> 00:27:00,052
from your bank account
whenever it is that they feel

445
00:27:00,133 --> 00:27:01,880
that they have a right to do so.

446
00:27:01,881 --> 00:27:03,770
With a credit card, whenever
you want to initiate

447
00:27:03,851 --> 00:27:07,088
a transaction, you are
effectively giving the keys

448
00:27:07,169 --> 00:27:09,669
to the merchant and
you give your keys

449
00:27:09,750 --> 00:27:12,302
to every merchant you deal with.

450
00:27:12,383 --> 00:27:16,091
So every time you make a
transaction, for example,

451
00:27:16,172 --> 00:27:19,177
online or so, you're taking a
risk because you're entrusting

452
00:27:19,258 --> 00:27:21,700
the merchant with this
very personal information

453
00:27:21,781 --> 00:27:24,739
which they could then take to
initiate transactions as well

454
00:27:24,820 --> 00:27:26,398
if they wanted to.

455
00:27:26,520 --> 00:27:29,060
Whereas Bitcoins it's a
completely different model where

456
00:27:29,141 --> 00:27:34,639
the control is more weighted
towards the consumer,

457
00:27:34,720 --> 00:27:37,075
the consumer then pushes
their funds to you.

458
00:27:37,156 --> 00:27:41,080
And then if you're doing
an internet service, right,

459
00:27:41,081 --> 00:27:43,880
you could broadcast
a Bitcoin address

460
00:27:43,881 --> 00:27:46,200
and anyone in the world
could send Bitcoin to you.

461
00:27:46,201 --> 00:27:49,935
If you were a band, a musical
band, and you're performing

462
00:27:50,016 --> 00:27:53,375
out in the concert, and your
concert was being broadcast

463
00:27:53,586 --> 00:27:59,442
around the world, if you
put up on the stage a sign

464
00:27:59,523 --> 00:28:02,005
that had a Bitcoin address,
well you could be funded

465
00:28:02,086 --> 00:28:04,130
by anyone who's watching
that broadcast anytime

466
00:28:04,211 --> 00:28:06,480
they watched it from
that point onward.

467
00:29:39,221 --> 00:29:41,720
Bitcoin
payments are a push system,

468
00:29:41,721 --> 00:29:45,720
meaning that the funds are
pushed from sender to receiver.

469
00:29:45,721 --> 00:29:49,351
This makes for a faster and
cheaper system than traditional

470
00:29:49,432 --> 00:29:52,479
pull systems like credit
card transactions.

471
00:29:53,213 --> 00:29:56,453
This in turn also means
that Bitcoin transactions

472
00:29:56,534 --> 00:29:59,542
are final and
cannot be reversed.

473
00:30:01,200 --> 00:30:02,968
Credit cards
actually has about

474
00:30:03,049 --> 00:30:05,279
a six month settlement time.

475
00:30:05,360 --> 00:30:09,273
Even though the transaction
looks like it went through,

476
00:30:09,354 --> 00:30:12,164
the person can then call back
and say this was a fraudulent

477
00:30:12,245 --> 00:30:15,359
transaction and then the credit
card will take that money

478
00:30:15,440 --> 00:30:18,046
away from the merchant in
some cases, in some cases

479
00:30:18,127 --> 00:30:20,843
the credit card will eat the
cost and that's a charge back.

480
00:30:20,924 --> 00:30:23,600
Now we pay for this, this
is the three percent fee.

481
00:30:23,601 --> 00:30:25,800
Merchants usually pay
this three percent

482
00:30:25,801 --> 00:30:27,720
in order to accept credit cards.

483
00:30:27,721 --> 00:30:30,000
So Bitcoin transactions
don't have charge backs.

484
00:30:30,001 --> 00:30:32,000
I think of it as a good thing.

485
00:30:32,001 --> 00:30:35,539
As much as people like
to say how great it is

486
00:30:35,620 --> 00:30:39,417
to dispute things, it
very, very rarely happens.

487
00:30:39,520 --> 00:30:42,531
Almost never do you order
something from a legitimate

488
00:30:42,612 --> 00:30:47,046
company and you are not
satisfied and then the company

489
00:30:47,127 --> 00:30:49,120
did not solve your problem.

490
00:30:49,121 --> 00:30:51,320
Most of the time this
situation happens is when

491
00:30:51,321 --> 00:30:53,320
your credit card
is actually stolen.

492
00:30:53,321 --> 00:30:55,956
And your credit card
can always be stolen.

493
00:30:56,042 --> 00:30:58,807
Everyone's credit card
is all over the internet

494
00:30:58,917 --> 00:31:02,836
is just luck or bad luck
if your credit card happens

495
00:31:02,917 --> 00:31:04,831
to be used in a
fraudulent transaction.

496
00:31:08,160 --> 00:31:10,265
We have some businesses
accepting Bitcoin,

497
00:31:10,346 --> 00:31:11,796
mostly restaurants for example.

498
00:31:11,877 --> 00:31:14,200
We have some restaurants
here set up in Acapulco.

499
00:31:14,201 --> 00:31:16,226
For merchants when they
accept Bitcoin its for them

500
00:31:16,307 --> 00:31:18,840
to have another option,
an innovative option,

501
00:31:19,049 --> 00:31:21,640
and for them they have
a lot of advantages.

502
00:31:21,641 --> 00:31:24,500
We don't charge what the
credit card fees charge

503
00:31:24,581 --> 00:31:27,667
every time they slide the
card, three, four, five,

504
00:31:27,748 --> 00:31:29,560
even 10 per cent depending
on the credit card.

505
00:31:29,561 --> 00:31:31,080
We don't charge anything.

506
00:31:31,081 --> 00:31:33,000
We don't have a minimal fee.

507
00:31:33,001 --> 00:31:38,588
You can pay 10 pesos, 50
pesos, we don't have a minimum.

508
00:31:40,400 --> 00:31:42,468
With Bitcoin
payments lowering the cost

509
00:31:42,549 --> 00:31:45,640
of doing business and
eliminating the possibility of

510
00:31:45,721 --> 00:31:47,245
fraudulent transactions,

511
00:31:47,326 --> 00:31:49,531
companies ranging
from mum and pop

512
00:31:49,612 --> 00:31:53,507
stores to multinational
corporations have started

513
00:31:53,588 --> 00:31:57,471
to embrace this new
way to transfer value.

514
00:33:01,224 --> 00:33:04,276
The first large publicly
traded company to accept Bitcoin

515
00:33:04,357 --> 00:33:09,045
is Overstock and they now ship
goods to over 200 countries.

516
00:33:09,170 --> 00:33:13,560
Last I checked, Amazon only
ships to about 50, 60 countries.

517
00:33:13,561 --> 00:33:18,151
So they're ceding entire
markets with entire populations

518
00:33:18,232 --> 00:33:21,912
in the billions, not even
fighting for that market share.

519
00:33:22,000 --> 00:33:24,753
Additionally if Amazon accepted
Bitcoin, there would be

520
00:33:24,834 --> 00:33:27,360
no fraud, there would
be no charge backs,

521
00:33:27,521 --> 00:33:29,479
so it would lower their cost.

522
00:33:29,560 --> 00:33:32,683
It would greatly increase
Amazon's profit margins

523
00:33:32,764 --> 00:33:34,435
to accept Bitcoin.

524
00:33:37,012 --> 00:33:40,026
Bitcoin allows
merchants to accept payments

525
00:33:40,107 --> 00:33:42,880
for their products and
services seamlessly.

526
00:33:42,961 --> 00:33:45,560
And although it's becoming
a great tool for merchants

527
00:33:45,561 --> 00:33:49,276
to offer their products to
previously untapped markets,

528
00:33:49,357 --> 00:33:52,287
it's the people in these
developing countries

529
00:33:52,368 --> 00:33:54,528
who will benefit the most.

530
00:33:55,440 --> 00:33:58,880
Bitcoin is the easiest,
safest, fastest, best option

531
00:33:58,961 --> 00:34:01,323
for people that don't have
bank accounts or that don't

532
00:34:01,404 --> 00:34:04,550
have ID's or they don't have
anything but a smart phone.

533
00:34:04,631 --> 00:34:06,995
There's lots and lots of
people in the world that,

534
00:34:07,076 --> 00:34:08,690
that's the position
that they're in.

535
00:34:08,771 --> 00:34:11,573
And Bitcoin is this fantastic
solution and opportunity

536
00:34:11,654 --> 00:34:14,151
for them to participate
in the world's economy

537
00:34:14,232 --> 00:34:16,401
without having to deal
with banks and having to

538
00:34:16,482 --> 00:34:17,480
jump through all these hoops.

539
00:34:17,481 --> 00:34:19,640
They just simply install an
app and now they're a part

540
00:34:19,641 --> 00:34:21,600
of the world's economy.

541
00:34:22,803 --> 00:34:27,034
Something like 33 per cent of
the credit card transactions

542
00:34:27,115 --> 00:34:29,200
coming out of Africa
are fraudulent.

543
00:34:29,295 --> 00:34:32,687
So nobody wants to take
business from Africa.

544
00:34:32,768 --> 00:34:34,448
It's just too risky.

545
00:34:34,840 --> 00:34:37,706
With Bitcoin you know the funds
are good so as a merchant,

546
00:34:37,787 --> 00:34:40,520
yeah, pay with Bitcoin,
I'll sell anything you want,

547
00:34:40,601 --> 00:34:42,559
you know, that's
legal to Africa.

548
00:34:42,640 --> 00:34:46,399
Then they're able to start
having property rights.

549
00:34:46,480 --> 00:34:49,930
And property rights is
really want's going to help

550
00:34:50,011 --> 00:34:52,331
lift them up out of poverty.

551
00:34:54,119 --> 00:34:57,119
So Bitcoin does get
into this niche of

552
00:34:57,200 --> 00:35:00,639
the under serviced people
in the banking industry.

553
00:35:00,720 --> 00:35:02,443
So a lot of third
world countries,

554
00:35:02,524 --> 00:35:03,428
they may not have access

555
00:35:03,509 --> 00:35:06,109
to bank accounts, they
might not even have ID's

556
00:35:06,310 --> 00:35:09,729
to open a bank account, but
if they have cell phones

557
00:35:09,810 --> 00:35:13,232
and if they have access to
the internet, they can now

558
00:35:13,399 --> 00:35:17,240
have the equivalent of a
bank on their cell phone.

559
00:35:17,436 --> 00:35:20,190
According to the
latest World Bank figures,

560
00:35:20,271 --> 00:35:23,542
there are approximately
two billion unbanked people

561
00:35:23,623 --> 00:35:25,928
throughout the developing world.

562
00:35:26,009 --> 00:35:29,308
The adoption and use of
Bitcoin in these countries

563
00:35:29,389 --> 00:35:32,589
could transform this human
rights issue and allow

564
00:35:32,670 --> 00:35:35,037
the unbanked
population of the world

565
00:35:35,118 --> 00:35:38,158
to participate in
the global economy.

566
00:35:38,732 --> 00:35:41,720
For the first time in the
entire history of the world

567
00:35:41,801 --> 00:35:45,065
anyone can now send or
receive any amount of money

568
00:35:45,146 --> 00:35:50,065
with anyone else, anywhere,
instantly, basically for free,

569
00:35:50,146 --> 00:35:53,737
and it's impossible for
anyone, including governments,

570
00:35:53,818 --> 00:35:56,389
to stop them from doing that.

571
00:35:56,520 --> 00:36:01,162
And as much as I love
gold, gold can't do that.

572
00:36:02,303 --> 00:36:03,667
Think about that.

573
00:36:03,748 --> 00:36:06,292
Here, anybody in this room
you can now send and receive

574
00:36:06,373 --> 00:36:08,721
any amount of money with
anyone, anywhere in the world,

575
00:36:08,802 --> 00:36:10,612
right now, and there's nothing

576
00:36:10,693 --> 00:36:12,050
that anybody can
do to stop that.

577
00:36:12,131 --> 00:36:14,628
That was not possible before
the invention of Bitcoin

578
00:36:14,709 --> 00:36:17,516
and that is a fundamentally
world changing technology

579
00:36:17,597 --> 00:36:21,157
for every single human
being on the planet.

580
00:36:22,021 --> 00:36:26,198
Wikileaks was able to
find funding through Bitcoin

581
00:36:26,279 --> 00:36:29,268
and this was in the midst
of a financial blockade

582
00:36:29,349 --> 00:36:30,560
that Wikileaks was facing.

583
00:36:30,641 --> 00:36:35,456
At the time the US had
ordered Visa, I think it was

584
00:36:35,537 --> 00:36:38,268
Mastercard as well, Bank
of America, to blockade

585
00:36:38,349 --> 00:36:40,919
any donations to Wikileaks.

586
00:36:41,000 --> 00:36:44,840
Say what you will about
Wikileaks, not necessarily

587
00:36:44,841 --> 00:36:47,050
that I condone everything
they do, but I do think

588
00:36:47,131 --> 00:36:51,042
it is very important for
freedom in the world for people

589
00:36:51,123 --> 00:36:55,636
to have uncensorable
ability to donate money

590
00:36:55,717 --> 00:36:57,560
to whatever political
causes that they want to.

591
00:36:57,641 --> 00:37:02,167
And so I thought that was
extremely powerful for Wikileaks

592
00:37:02,248 --> 00:37:05,200
to be able to defy
the US in that sense.

593
00:37:08,440 --> 00:37:10,800
Because Bitcoin
puts the private keys

594
00:37:10,881 --> 00:37:14,098
of wealth in the hands of
the user, it can be used

595
00:37:14,179 --> 00:37:16,499
to support activist causes.

596
00:37:17,033 --> 00:37:21,545
But Bitcoin can also be used
for a night out on the town.

597
00:37:23,080 --> 00:37:28,119
My name is Ken Shishido,
I am co-organizer for

598
00:37:28,200 --> 00:37:31,115
Tokyo Bitcoin Meetup Group.

599
00:37:32,720 --> 00:37:38,275
We have this special event
tonight having burlesque dancers

600
00:37:38,356 --> 00:37:40,276
receiving Bitcoin tips.

601
00:37:41,043 --> 00:37:45,183
The reason why I do this is
that sometimes we want to

602
00:37:45,264 --> 00:37:50,761
make our meetup interesting
instead of talking about

603
00:37:50,842 --> 00:37:53,880
really, really technical
stuff or political stuff.

604
00:37:54,224 --> 00:37:58,183
So this is one of the event
we want to make a really fun

605
00:37:58,264 --> 00:38:01,424
and see what can be
done using Bitcoin.

606
00:38:06,000 --> 00:38:09,999
Currently if you're
living in most countries,

607
00:38:10,080 --> 00:38:12,081
buying things is not a problem.

608
00:38:12,162 --> 00:38:15,120
You have credit cards,
you can still use cash,

609
00:38:15,209 --> 00:38:19,631
and to me that is not
the true use of Bitcoin.

610
00:38:19,787 --> 00:38:22,640
The true use of Bitcoin is to
give you financial privacy,

611
00:38:22,721 --> 00:38:25,480
which I find
extremely important.

612
00:38:26,880 --> 00:38:30,026
During the global
financial crisis as cracks

613
00:38:30,107 --> 00:38:34,042
in the financial system spread,
institutions once thought

614
00:38:34,123 --> 00:38:37,639
to be invincible were
shown to be vulnerable.

615
00:38:38,185 --> 00:38:41,636
As we now know, governments
around the world were forced

616
00:38:41,717 --> 00:38:44,951
to bail out financial
institutions.

617
00:38:45,600 --> 00:38:48,987
A bailout is when government
takes tax payer money

618
00:38:49,068 --> 00:38:52,676
and gives it to an irresponsible
financial institution

619
00:38:52,757 --> 00:38:54,917
to bailout their mistakes.

620
00:38:56,000 --> 00:38:59,222
A bail in is different
in that laws are written

621
00:38:59,303 --> 00:39:02,393
which permit financial
institutions to take funds

622
00:39:02,474 --> 00:39:07,404
directly from customer accounts
to shore up their losses.

623
00:39:07,640 --> 00:39:11,748
Such a thing occurred
in Cyprus in 2013.

624
00:39:12,600 --> 00:39:15,706
Well I started learning
about Bitcoin back in 2013

625
00:39:15,787 --> 00:39:18,628
especially during the
Cypress event when banks were

626
00:39:18,709 --> 00:39:21,834
shut down and money was
confiscated from people.

627
00:39:21,879 --> 00:39:24,792
I remember telling my
co-workers, some of the PHD's,

628
00:39:24,873 --> 00:39:28,604
the quants, this is really
bad, this is actually gonna

629
00:39:28,685 --> 00:39:32,170
probably start happening in
many other western countries.

630
00:39:32,310 --> 00:39:33,878
And they were all
laughing at me saying,

631
00:39:33,959 --> 00:39:37,120
no it's just Cyprus
it'll never happen here.

632
00:39:37,121 --> 00:39:40,084
And that's when I knew
someone must have come up

633
00:39:40,165 --> 00:39:43,325
with a way to get
around this problem.

634
00:39:45,360 --> 00:39:50,034
When a depositor deposits
dollars or Euros into the bank,

635
00:39:50,115 --> 00:39:53,292
title to the dollars or
Euros transfers to the bank

636
00:39:53,373 --> 00:39:57,519
and those depositors become
unsecured creditors of the bank.

637
00:39:57,600 --> 00:40:01,222
If the banks screw up for
whatever reason, there's now

638
00:40:01,303 --> 00:40:03,862
been legislation passed
in many of the countries

639
00:40:03,943 --> 00:40:07,261
where they can be bailed in,
meaning that their deposits

640
00:40:07,342 --> 00:40:10,349
can be turned into
shares of the bank.

641
00:40:11,880 --> 00:40:14,034
Jeff Berwick
is an entrepreneur,

642
00:40:14,115 --> 00:40:17,560
financial commentator,
and podcast host.

643
00:40:17,834 --> 00:40:22,058
Having founded Stockhouse.com,
Canada's largest financial

644
00:40:22,139 --> 00:40:26,112
news website, Jeff's
analysis, writings, and videos

645
00:40:26,193 --> 00:40:30,209
have been viewed by millions
of people around the world.

646
00:40:31,200 --> 00:40:33,050
It's difficult to say
exactly what's gonna happen

647
00:40:33,131 --> 00:40:33,798
in the future,

648
00:40:33,879 --> 00:40:35,800
but it's definitely going
to keep happening.

649
00:40:35,896 --> 00:40:38,081
I said after Cyprus it's
gonna in Greece and then they

650
00:40:38,162 --> 00:40:39,879
shut down the banks
in Greece for months.

651
00:40:39,960 --> 00:40:43,198
And of the interest to
people who live in Europe is

652
00:40:43,279 --> 00:40:46,050
on January first of this
year, they passed a European

653
00:40:46,131 --> 00:40:48,039
bank bail in legislation.

654
00:40:48,120 --> 00:40:50,560
So that should be a huge
wakeup call to people

655
00:40:50,561 --> 00:40:51,693
that they're doing that.

656
00:40:51,774 --> 00:40:53,886
So in Cyprus they didn't
actually pass it before.

657
00:40:53,967 --> 00:40:56,143
So in Cyprus they closed
the banks then they came up

658
00:40:56,224 --> 00:40:58,518
with some legislation so
the banks could just take

659
00:40:58,599 --> 00:41:00,506
their customers
money to keep afloat.

660
00:41:00,607 --> 00:41:03,029
So they didn't even
have that legislation

661
00:41:03,110 --> 00:41:04,119
and they did that in Cyprus.

662
00:41:04,200 --> 00:41:05,440
Now they already
have it in place

663
00:41:05,521 --> 00:41:07,982
so they know what's coming.

664
00:41:08,200 --> 00:41:12,316
I see Bitcoin as a way to

665
00:41:12,317 --> 00:41:14,810
protect and hide your assets

666
00:41:14,960 --> 00:41:18,417
and we're not saying this
is bad, I'm not saying that

667
00:41:18,498 --> 00:41:21,185
only criminals hide
their assets, no.

668
00:41:21,318 --> 00:41:24,919
People that have worked
hard and they've paid taxes

669
00:41:25,553 --> 00:41:28,331
and they've done everything
and like what happened

670
00:41:28,412 --> 00:41:32,612
in Greece and Cyprus where
money and bank accounts

671
00:41:32,693 --> 00:41:33,982
was just confiscated.

672
00:41:34,120 --> 00:41:37,018
So if the next time the
banking system gets in trouble,

673
00:41:37,099 --> 00:41:41,729
it could be users accounts
that are raided to help

674
00:41:41,810 --> 00:41:43,120
fund the banking system.

675
00:41:43,514 --> 00:41:46,880
We're talking people
with significant money,

676
00:41:47,084 --> 00:41:50,360
100,000, 200,000,
but it's legal money,

677
00:41:50,586 --> 00:41:52,866
they've worked hard for it.

678
00:41:53,939 --> 00:41:55,870
Some economists
believe that the global

679
00:41:55,951 --> 00:42:00,203
financial crisis of the last
decade was just a precursor

680
00:42:00,284 --> 00:42:02,639
to a much larger calamity.

681
00:42:03,000 --> 00:42:06,797
If this is the case, how will
governments react in response

682
00:42:06,878 --> 00:42:10,558
to the next failure of
our financial system.

683
00:42:11,200 --> 00:42:14,573
Unlike the current banking
system, Bitcoin allows

684
00:42:14,654 --> 00:42:18,349
individuals to hold the
private keys to their wealth.

685
00:42:18,912 --> 00:42:22,413
However, this also comes
with the added responsibility

686
00:42:22,494 --> 00:42:24,574
of securing the Bitcoins.

687
00:42:25,720 --> 00:42:28,753
With Bitcoin you're
in 100 per cent complete control

688
00:42:28,834 --> 00:42:32,362
of your own money, but that
also means you're 100 per cent

689
00:42:32,443 --> 00:42:34,354
responsible for what
happens to your own money.

690
00:42:34,435 --> 00:42:37,000
So it's your job to make sure
you keep your Bitcoins safe.

691
00:42:37,162 --> 00:42:39,050
People are used to
things like credit cards

692
00:42:39,131 --> 00:42:41,120
and bank accounts and
Paypal and if your

693
00:42:41,201 --> 00:42:44,206
credit card gets stolen, you
just call the credit card

694
00:42:44,287 --> 00:42:46,318
company and they cancel it
and that's the end of it.

695
00:42:46,584 --> 00:42:49,378
If your Bitcoins get stolen,
there's nobody that you

696
00:42:49,459 --> 00:42:51,920
can call to ask for help.

697
00:42:52,129 --> 00:42:54,803
But the other side of the
coin there is that there's

698
00:42:54,884 --> 00:42:56,964
nobody that you have to
call to ask for permission

699
00:42:57,045 --> 00:43:01,165
to use your Bitcoins however
you want, so it cuts both ways.

700
00:43:01,950 --> 00:43:04,901
Mt. Gox, the Tokyo
based Bitcoin exchange

701
00:43:04,982 --> 00:43:07,120
has filed for
bankruptcy protection.

702
00:43:07,201 --> 00:43:09,026
The announcement comes
days after the exchange

703
00:43:09,107 --> 00:43:11,808
announced that as much
as 450 million dollars

704
00:43:11,889 --> 00:43:14,119
of the virtual currency
had gone missing.

705
00:43:14,200 --> 00:43:17,104
CEO Mark Karpeles
apologized and bowed deeply

706
00:43:17,185 --> 00:43:18,919
on Japanese television.

707
00:43:19,000 --> 00:43:22,052
It remains unclear if the
missing Bitcoins were stolen,

708
00:43:22,133 --> 00:43:25,373
voided by technological
flaws, or both.

709
00:43:28,318 --> 00:43:31,365
So actually this is
the old Mt. Gox building.

710
00:43:31,506 --> 00:43:34,308
Mt. Gox was the biggest Bitcoin
exchange that ever existed.

711
00:43:34,389 --> 00:43:36,722
I think at some
point they were doing

712
00:43:36,803 --> 00:43:38,719
over 100 million dollars
a day worth of volume.

713
00:43:38,800 --> 00:43:40,657
And they collapsed

714
00:43:40,658 --> 00:43:44,990
in quite a spectacular
fashion in 2014.

715
00:43:45,480 --> 00:43:48,088
I think the size of
the losses mounted

716
00:43:48,169 --> 00:43:50,787
to over 450 million dollars.

717
00:43:50,868 --> 00:43:56,081
They claim to have lost
850,000 Bitcoins of which

718
00:43:56,162 --> 00:43:59,920
200,000 were found afterwards
in some old wallet.

719
00:44:00,120 --> 00:44:01,360
People were putting money in

720
00:44:01,361 --> 00:44:03,615
and essentially giving
them their Bitcoins.

721
00:44:03,720 --> 00:44:06,631
Giving them control
of the private keys

722
00:44:06,717 --> 00:44:10,160
and the irony is that
exact centralization risk

723
00:44:10,256 --> 00:44:14,553
is what Bitcoin is
supposed to free us from.

724
00:44:15,021 --> 00:44:18,417
And Mt. Gox just took all
of the decentralized nature

725
00:44:18,498 --> 00:44:20,917
of Bitcoin and put it into
one company with a lot

726
00:44:20,998 --> 00:44:24,573
of peoples money and they on
top of that, put the control

727
00:44:24,654 --> 00:44:27,540
of that company's
finances under one person

728
00:44:27,621 --> 00:44:30,301
who has the keys to the kingdom.

729
00:44:31,360 --> 00:44:34,183
We've probably seen over
the last two or three years,

730
00:44:34,264 --> 00:44:38,948
by my count somewhere between
half a dozen to upwards

731
00:44:39,029 --> 00:44:43,167
of 10 different major
hacks of companies

732
00:44:43,248 --> 00:44:45,076
that are involved in Bitcoin.

733
00:44:45,160 --> 00:44:46,995
And one thing you have to
understand is that Bitcoin

734
00:44:47,076 --> 00:44:50,237
is fundamentally different
from securing an asset

735
00:44:50,318 --> 00:44:54,303
that's held within the
regular financial space.

736
00:44:54,400 --> 00:44:58,159
With Bitcoin if you ever get
access to the private key

737
00:44:58,240 --> 00:45:03,597
to someone's wallet, you
can initiate a transaction

738
00:45:03,678 --> 00:45:05,880
outside of the infrastructure
of that company

739
00:45:05,881 --> 00:45:07,120
without their knowledge.

740
00:45:07,121 --> 00:45:08,800
That's unlike anything
that exists currently

741
00:45:08,801 --> 00:45:10,480
in the financial space,
where if you want to

742
00:45:10,481 --> 00:45:13,870
take money out of that target,

743
00:45:13,951 --> 00:45:18,287
you have to have infiltrated
their infrastructure.

744
00:45:18,520 --> 00:45:20,487
I think it's part of the
mentality where people are

745
00:45:20,568 --> 00:45:23,987
trained not to trust themselves
with their own money and so

746
00:45:24,068 --> 00:45:26,534
everybody puts their money
in a bank for safe keeping.

747
00:45:26,615 --> 00:45:30,058
And so that sort of mentality
where you put your money

748
00:45:30,139 --> 00:45:34,239
in some pooled company whose
sole purpose is to safeguard it

749
00:45:35,000 --> 00:45:39,080
that is a really hard
stigma to break, to change.

750
00:45:39,537 --> 00:45:42,261
And I think this is the thing
that's the most challenging

751
00:45:42,342 --> 00:45:45,542
about Bitcoin is that
it challenges people

752
00:45:45,623 --> 00:45:47,393
to question that stigma.

753
00:45:47,474 --> 00:45:51,737
It challenges people to
take control of your own

754
00:45:51,818 --> 00:45:55,248
money and value and to
safeguard it yourself.

755
00:47:00,115 --> 00:47:02,917
The collapse of
the Mt. Box Bitcoin exchange

756
00:47:02,998 --> 00:47:07,138
in 2014 caused much confusion
and scepticism about

757
00:47:07,219 --> 00:47:09,303
the security of Bitcoin.

758
00:47:09,792 --> 00:47:13,495
However, years after the
collapse of the once largest

759
00:47:13,576 --> 00:47:17,278
Bitcoin exchange, Bitcoin
is now on the radar of many

760
00:47:17,359 --> 00:47:20,999
institutions within
the financial industry.

761
00:47:22,080 --> 00:47:26,320
The big question, the
conversation you would hear

762
00:47:26,321 --> 00:47:31,003
is that the question was
whether blotching technology

763
00:47:31,084 --> 00:47:33,520
would impact the
financial industry.

764
00:47:34,287 --> 00:47:36,636
And now if you go to the
trade shows and you listen to

765
00:47:36,717 --> 00:47:39,200
the media, the question
is not whether,

766
00:47:39,201 --> 00:47:42,933
the question is how blotching
technology will impact

767
00:47:43,014 --> 00:47:44,675
and transform the
financial industry.

768
00:47:44,756 --> 00:47:46,720
It's now a foregone conclusion
that blotching technology

769
00:47:46,721 --> 00:47:49,600
will impact the financial
industry in a major way.

770
00:47:50,318 --> 00:47:51,737
So that's where we are now.

771
00:47:51,818 --> 00:47:53,200
But we weren't always there.

772
00:47:53,201 --> 00:47:57,320
If you look just three
years ago, two years ago,

773
00:47:57,474 --> 00:48:02,183
the attitude was that Bitcoin
was almost a laughable

774
00:48:02,264 --> 00:48:06,076
concept and it was a
non-sustainable system

775
00:48:06,162 --> 00:48:09,068
and it couldn't be applied
in the financial space.

776
00:48:46,937 --> 00:48:52,131
This Bitcoin,
while it looks great,

777
00:48:53,076 --> 00:48:55,506
it's a nice piece of
collection, you know,.

778
00:48:56,098 --> 00:48:59,318
It's better than yen or a penny.

779
00:49:02,880 --> 00:49:04,720
Some of the areas
where Bitcoin has been

780
00:49:04,721 --> 00:49:06,640
most popular so far
is China which has

781
00:49:06,641 --> 00:49:09,200
quite a high level
of capitol controls.

782
00:49:09,281 --> 00:49:11,854
Other countries like
China, Argentina, Iran,

783
00:49:11,935 --> 00:49:14,279
this is where Bitcoins really
caught on to a lot of people

784
00:49:14,360 --> 00:49:16,560
because you just simply,
it's not easy to transfer

785
00:49:16,561 --> 00:49:19,120
money in or out of the
country without going through

786
00:49:19,201 --> 00:49:22,237
regulatory problems or
having to know someone

787
00:49:22,318 --> 00:49:23,847
in the government,
things like that.

788
00:49:23,928 --> 00:49:27,928
So, definitely that is
a huge boost to Bitcoin.

789
00:49:31,396 --> 00:49:33,628
The advantages
of Bitcoin continue

790
00:49:33,709 --> 00:49:37,039
to increase its popularity
around the world.

791
00:49:37,120 --> 00:49:41,060
Sometimes in the most
unlikely of places.

792
00:49:42,560 --> 00:49:44,630
My name is David
Hyett and I operate

793
00:49:44,711 --> 00:49:47,511
the Phoenix Rising
Café in Nimbin.

794
00:49:48,889 --> 00:49:51,800
This is where our Bitcoin
machine is located

795
00:49:51,801 --> 00:49:54,253
right next to the
traditional ATM machine,

796
00:49:54,334 --> 00:49:58,294
so the customers have a
choice of using either.

797
00:49:58,701 --> 00:50:01,034
I saw that the current
banking system was rather

798
00:50:01,115 --> 00:50:05,558
restrictive and the
independence of people running

799
00:50:05,639 --> 00:50:08,232
their own banking systems
really appealed to me.

800
00:50:08,685 --> 00:50:12,073
And the fact also that it
was digital and we're living

801
00:50:12,154 --> 00:50:14,340
in a digital age, I just
knew that it was something

802
00:50:14,421 --> 00:50:17,901
that would have to get
traction over time.

803
00:50:18,896 --> 00:50:23,659
Bitcoin is definitely
the largest innovation

804
00:50:23,740 --> 00:50:27,873
in monetary science since
Isaac Newtons gold standard.

805
00:50:28,256 --> 00:50:31,440
Going to completely revolution
how all of our assets

806
00:50:31,441 --> 00:50:34,573
are held so it's going to
disrupt the law, gonna disrupt

807
00:50:34,654 --> 00:50:38,268
accounting, gonna disrupt
our finance industry,

808
00:50:38,349 --> 00:50:40,320
gonna disrupt so much.

809
00:50:40,576 --> 00:50:42,636
It will also

810
00:50:42,637 --> 00:50:47,990
rapidly decentralize
the capital.

811
00:50:48,240 --> 00:50:51,208
No longer will

812
00:50:51,209 --> 00:50:54,472
millions of people
accumulate all of their

813
00:50:54,553 --> 00:50:58,065
capital into one big pile
that then gets allocated by

814
00:50:58,146 --> 00:51:00,467
a senior vice president
of Merrill Lynch

815
00:51:00,548 --> 00:51:02,053
or Bank of America.

816
00:51:02,134 --> 00:51:04,768
It'll be millions of
people that you have to go

817
00:51:04,849 --> 00:51:09,160
and entice out of their
capitol to go fight a war

818
00:51:09,241 --> 00:51:11,119
in Afghanistan or Iraq.

819
00:51:11,200 --> 00:51:14,073
Once you decentralize
all of those private keys

820
00:51:14,154 --> 00:51:17,229
it becomes much more
difficult to get people to pay

821
00:51:17,310 --> 00:51:20,039
for a lot of these goods and
services that they otherwise

822
00:51:20,120 --> 00:51:22,480
wouldn't necessarily pay for.

823
00:51:24,014 --> 00:51:26,640
I'll just scan it and now
I have your Bitcoin address

824
00:51:26,641 --> 00:51:30,200
in my wallet right here, I'll
go ahead and enter one dollar

825
00:51:30,201 --> 00:51:31,720
and we'll hit send.

826
00:51:31,721 --> 00:51:34,120
I am sending the transaction.

827
00:51:35,372 --> 00:51:36,400
Sent and if you...

828
00:51:36,821 --> 00:51:39,029
There you go, you
heard the noise.

829
00:51:39,320 --> 00:51:42,104
Before Bitcoin I was
basically retired, I was just

830
00:51:42,185 --> 00:51:45,308
hanging out, enjoying my life,
practising jujitsu everyday,

831
00:51:45,389 --> 00:51:48,479
and it was really fun but wasn't
really gonna make the world

832
00:51:48,560 --> 00:51:51,607
that much of a better
place if at all.

833
00:51:53,012 --> 00:51:56,065
And then I discovered Bitcoin
and I looked around the world

834
00:51:56,146 --> 00:51:58,933
and I saw all these wars
being fought and central banks

835
00:51:59,014 --> 00:52:01,972
debasing the currency and
basically preventing the world

836
00:52:02,053 --> 00:52:05,160
from being as good of a place
as it potentially could be.

837
00:52:05,531 --> 00:52:09,612
And I saw Bitcoin and I saw
this as a tool to strip away

838
00:52:09,693 --> 00:52:11,140
all of their power to do that.

839
00:52:11,221 --> 00:52:13,342
Most people aren't interested
in paying to kill people

840
00:52:13,423 --> 00:52:15,524
they've never met
in other countries.

841
00:52:15,607 --> 00:52:17,560
Most people are willing to
pay for roads and schools

842
00:52:17,561 --> 00:52:20,268
and hospitals, so if the
governments say we need money

843
00:52:20,349 --> 00:52:22,440
for roads and schools and
hospitals, I think people

844
00:52:22,441 --> 00:52:24,360
would probably give them
a good chunk of that.

845
00:52:24,361 --> 00:52:26,200
If governments say we need
money to go kill people

846
00:52:26,201 --> 00:52:28,037
in other countries that
you've never been to in your

847
00:52:28,118 --> 00:52:30,284
entire life and you're
probably never gonna go to

848
00:52:30,365 --> 00:52:33,120
in your entire life,
people are gonna say,

849
00:52:33,121 --> 00:52:34,720
no I don't wanna pay for that.

850
00:52:34,721 --> 00:52:37,799
But if you're using bank
accounts and dollars and Euros,

851
00:52:38,256 --> 00:52:40,120
governments can seize
all the money out of your

852
00:52:40,201 --> 00:52:41,248
bank account any time.

853
00:52:41,329 --> 00:52:43,640
They can print as many new
dollars or Euros as they want

854
00:52:43,641 --> 00:52:45,200
to pay for these
things at any time.

855
00:52:45,281 --> 00:52:47,640
If the world's using Bitcoin,
it takes away those tools

856
00:52:47,641 --> 00:52:49,160
from government and I
think that makes the world

857
00:52:49,161 --> 00:52:51,320
a much, much better place.

858
00:52:53,412 --> 00:52:55,128
For the
first time in history,

859
00:52:55,209 --> 00:52:58,058
Bitcoin now provides
the entire world

860
00:52:58,139 --> 00:53:01,889
with a completely
decentralized payment system.

861
00:53:02,000 --> 00:53:05,766
One where each individual
holds the ownership and control

862
00:53:05,847 --> 00:53:08,327
of their own financial wealth.

863
00:53:08,834 --> 00:53:12,784
One where all users can
transfer value and interact

864
00:53:12,865 --> 00:53:16,119
freely amongst each
other instantly.

865
00:53:16,200 --> 00:53:18,550
What could the future
of our world look like

866
00:53:18,631 --> 00:53:21,279
with such a revolutionary tool?

867
00:53:21,440 --> 00:53:24,880
The possibilities
could be truly magical.

868
00:53:27,537 --> 00:53:30,771
Bitcoin is magic
internet money.

869
00:53:30,880 --> 00:53:33,901
Bitcoin allows you to send
and receive money with anyone,

870
00:53:33,982 --> 00:53:37,178
anywhere in the world
just like magic.

871
00:53:38,560 --> 00:53:41,533
I'm at a loss for words
because it's that exciting

872
00:53:41,614 --> 00:53:43,614
and that world changing.

873
00:53:44,240 --> 00:53:46,940
With Bitcoin you can pull
out your iPod or your iPhone

874
00:53:47,021 --> 00:53:50,003
or your tablet or whatever,
install an app and in less

875
00:53:50,084 --> 00:53:53,200
than 30 seconds you have the
ability to send and receive

876
00:53:53,201 --> 00:53:56,771
money with anyone, anywhere in
the world basically for free.

877
00:53:56,960 --> 00:53:59,308
And you can be 10 years old
and do that or you can be

878
00:53:59,389 --> 00:54:00,576
100 years old and do that,

879
00:54:00,657 --> 00:54:02,428
and you can do that
in any country.

880
00:54:02,509 --> 00:54:04,110
That's magic.

881
00:54:06,420 --> 00:54:09,920
Subrip: Pix