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- 1
- 00:00:11,444 --> 00:00:13,846
- <i> ( Whirring )</i>
- 2
- 00:00:19,552 --> 00:00:21,120
- Don't be filming
- my passwords.
- 3
- 00:00:24,824 --> 00:00:26,792
- <i> I used to have</i>
- <i> a shirt in high school</i>
- 4
- 00:00:26,794 --> 00:00:31,363
- <i> that said</i>
- <i> "technology must be used</i>
- <i> to liberate the individual."</i>
- 5
- 00:00:31,365 --> 00:00:33,265
- <i> And I didn't really know</i>
- <i> what it meant for years,</i>
- 6
- 00:00:33,267 --> 00:00:35,634
- <i> 'cause I didn't</i>
- <i> really think about it.</i>
- 7
- 00:00:35,636 --> 00:00:38,670
- <i> But today I look back</i>
- <i> and I'm like, "oh man,</i>
- <i> hell yeah, I like that shirt."</i>
- 8
- 00:00:38,672 --> 00:00:41,774
- <i> I'm glad I wore that shirt,</i>
- <i> 'cause it's how I really</i>
- <i> feel today.</i>
- 9
- 00:00:41,776 --> 00:00:43,709
- My name is Daniel mross.
- 10
- 00:00:43,711 --> 00:00:48,047
- Today is may 3rd, 2012.
- 11
- 00:00:49,849 --> 00:00:51,984
- <i> I go through college</i>
- <i> and watch the Internet come</i>
- 12
- 00:00:51,986 --> 00:00:54,286
- <i> and all these</i>
- <i> different things.</i>
- <i> And now, like, bitcoin,</i>
- 13
- 00:00:54,288 --> 00:00:57,489
- <i> it's just a single</i>
- <i> technology built on top</i>
- <i> of the Internet,</i>
- 14
- 00:00:57,491 --> 00:00:59,124
- <i> but it's so fascinating</i>
- <i> because there's so many</i>
- 15
- 00:00:59,126 --> 00:01:01,660
- <i> freaking things</i>
- <i> you can do with it.</i>
- 16
- 00:01:01,662 --> 00:01:03,162
- <i> It's also just</i>
- <i> a big experiment.</i>
- 17
- 00:01:03,164 --> 00:01:04,663
- <i> There's no guarantees</i>
- <i> with it.</i>
- 18
- 00:01:06,299 --> 00:01:08,434
- <i> We might just all be</i>
- <i> wasting our time...</i>
- 19
- 00:01:09,903 --> 00:01:11,437
- <i> Exploring concepts</i>
- <i> and ideas.</i>
- 20
- 00:01:11,439 --> 00:01:13,739
- <i> It's at this crossroads</i>
- <i> of technology</i>
- 21
- 00:01:13,741 --> 00:01:16,341
- <i> and philosophy</i>
- <i> and politics and everything.</i>
- 22
- 00:01:17,844 --> 00:01:21,747
- <i> Just be a part of it.</i>
- <i> It's fun.</i>
- 23
- 00:01:21,749 --> 00:01:23,482
- <i> It's crazy though,</i>
- <i> but it's fun.</i>
- 24
- 00:01:24,918 --> 00:01:26,452
- Nick mross:
- <i> Um, first question is</i>
- 25
- 00:01:26,454 --> 00:01:28,587
- <i> what is bitcoin?</i>
- 26
- 00:01:28,589 --> 00:01:30,722
- - ( Chuckles )
- -<i> ( Dramatic music playing )</i>
- 27
- 00:01:33,193 --> 00:01:34,993
- Daniel:
- <i> I can't tell you</i>
- <i> what bitcoin is</i>
- 28
- 00:01:34,995 --> 00:01:36,428
- <i> in just a few sentences.</i>
- 29
- 00:01:36,430 --> 00:01:39,431
- <i> It takes time</i>
- <i> to understand it,</i>
- 30
- 00:01:39,433 --> 00:01:41,667
- <i> the same way it took</i>
- <i> people time to understand</i>
- 31
- 00:01:41,669 --> 00:01:43,135
- <i> what the Internet was</i>
- 32
- 00:01:43,137 --> 00:01:45,003
- <i> back in 1994.</i>
- 33
- 00:01:45,005 --> 00:01:48,140
- That little mark with the "a"
- and then the ring around it.
- 34
- 00:01:48,142 --> 00:01:50,109
- - "At"?
- - See, that's what I said.
- 35
- 00:01:50,111 --> 00:01:52,811
- - Mm-hmm.
- - Katie said she thought
- it was "about."
- 36
- 00:01:52,813 --> 00:01:56,181
- - Katie:<i> Yeah. </i>
- - Elizabeth vargas:
- <i> Oh, Internet is...</i>
- 37
- 00:01:56,183 --> 00:01:58,283
- -<i> That massive</i>
- <i> computer network... </i>
- - Katie:<i> Right.</i>
- 38
- 00:01:58,285 --> 00:02:00,452
- <i> ...the one that's becoming</i>
- <i> really big now.</i>
- 39
- 00:02:00,454 --> 00:02:02,955
- Allison, can you explain
- what Internet is?
- 40
- 00:02:04,657 --> 00:02:06,492
- Daniel:
- <i> When the Internet</i>
- <i> was taking off,</i>
- 41
- 00:02:06,494 --> 00:02:08,327
- <i> I was in college</i>
- <i> at Virginia tech</i>
- 42
- 00:02:08,329 --> 00:02:10,229
- <i> studying computer science.</i>
- 43
- 00:02:10,231 --> 00:02:13,165
- <i> Looking back,</i>
- <i> it's amazing to think about</i>
- 44
- 00:02:13,167 --> 00:02:15,167
- <i> how much the world</i>
- <i> was changing.</i>
- 45
- 00:02:15,169 --> 00:02:16,802
- <i> Hey, Dan,</i>
- <i> ready for the game?</i>
- 46
- 00:02:16,804 --> 00:02:18,971
- I'm just finishing up here
- with my new kayaking friends.
- 47
- 00:02:18,973 --> 00:02:20,239
- Kayaking friends
- on your computer?
- 48
- 00:02:20,241 --> 00:02:22,674
- Yeah, I just got
- America online.
- 49
- 00:02:22,676 --> 00:02:25,210
- Daniel:
- <i> That same type of innovation</i>
- <i> is happening again</i>
- 50
- 00:02:25,212 --> 00:02:26,812
- <i> with bitcoin.</i>
- 51
- 00:02:26,814 --> 00:02:28,514
- It's the smartest people
- in the room
- 52
- 00:02:28,516 --> 00:02:31,450
- that are
- the most excited about this.
- So what are they seeing?
- 53
- 00:02:31,452 --> 00:02:34,887
- Daniel:
- <i> The Internet changed</i>
- <i> the way the world communicates</i>
- 54
- 00:02:34,889 --> 00:02:37,756
- <i> bitcoin changes</i>
- <i> the way money works.</i>
- 55
- 00:02:37,758 --> 00:02:41,527
- You can basically put
- a bank in your pocket.
- 56
- 00:02:41,529 --> 00:02:42,794
- Psst!
- 57
- 00:02:42,796 --> 00:02:44,463
- Wanna buy some
- secret stuff?
- 58
- 00:02:44,465 --> 00:02:46,131
- There is now a new note
- 59
- 00:02:46,133 --> 00:02:47,432
- that people are starting
- to talk about--
- 60
- 00:02:47,434 --> 00:02:48,600
- the bitcoin.
- 61
- 00:02:48,602 --> 00:02:50,369
- The money of the future.
- 62
- 00:02:54,340 --> 00:02:56,141
- Daniel:
- <i> Bitcoin was created to provide</i>
- 63
- 00:02:56,143 --> 00:02:58,010
- <i> an alternative</i>
- <i> to the banking system.</i>
- 64
- 00:02:58,012 --> 00:02:59,011
- George w. Bush:
- <i> We're in the midst</i>
- 65
- 00:02:59,013 --> 00:03:01,146
- <i> of a serious financial crisis</i>
- 66
- 00:03:01,148 --> 00:03:02,681
- and the federal government
- is responding
- 67
- 00:03:02,683 --> 00:03:04,116
- with decisive action.
- 68
- 00:03:07,654 --> 00:03:09,788
- Daniel:
- <i> Unlike most currencies,</i>
- 69
- 00:03:09,790 --> 00:03:12,958
- <i> bitcoins are issued according</i>
- <i> to a set of fixed rules.</i>
- 70
- 00:03:12,960 --> 00:03:15,761
- <i> The idea was to create</i>
- <i> money whose value</i>
- 71
- 00:03:15,763 --> 00:03:19,298
- <i> couldn't be manipulated</i>
- <i> by a central authority.</i>
- 72
- 00:03:19,300 --> 00:03:21,433
- The government, no matter
- how many guns they draw,
- 73
- 00:03:21,435 --> 00:03:24,336
- cannot change
- a mathematical problem.
- 74
- 00:03:24,338 --> 00:03:26,939
- <i> They can point their guns</i>
- <i> at "two plus two,"</i>
- 75
- 00:03:26,941 --> 00:03:28,006
- <i> but it's always</i>
- <i> gonna equal four.</i>
- 76
- 00:03:32,645 --> 00:03:34,379
- Daniel:
- <i> It's fascinating to imagine</i>
- 77
- 00:03:34,381 --> 00:03:37,115
- <i> what it means to have</i>
- <i> global decentralized money.</i>
- 78
- 00:03:38,785 --> 00:03:40,018
- <i> And that's what's happening.</i>
- 79
- 00:03:48,795 --> 00:03:50,529
- <i> ( Instrumental music playing )</i>
- 80
- 00:04:09,148 --> 00:04:12,818
- ( Babbles )
- 81
- 00:04:12,820 --> 00:04:15,454
- My five-year-old's birthday.
- 82
- 00:04:15,456 --> 00:04:17,089
- First round
- of burgers is ready.
- 83
- 00:04:17,091 --> 00:04:19,091
- Second round is
- going on in a second.
- 84
- 00:04:20,159 --> 00:04:22,261
- First round
- of burgers is ready!
- 85
- 00:04:22,263 --> 00:04:23,729
- ( People chattering )
- 86
- 00:04:23,731 --> 00:04:25,130
- First round.
- 87
- 00:04:26,733 --> 00:04:29,167
- Eliza mross:
- <i> Dan has always been</i>
- <i> an idea guy.</i>
- 88
- 00:04:29,169 --> 00:04:31,436
- <i> Bitcoin is the perfect</i>
- <i> combination</i>
- 89
- 00:04:31,438 --> 00:04:33,905
- of how can
- I change the world
- and make it better,
- 90
- 00:04:33,907 --> 00:04:36,141
- but how can
- I also be a nerd?
- 91
- 00:04:36,143 --> 00:04:38,510
- <i> So mostly I've just been</i>
- <i> supporting him</i>
- 92
- 00:04:38,512 --> 00:04:41,013
- <i> in this craziness.</i>
- 93
- 00:04:44,117 --> 00:04:45,851
- Daniel:
- <i> Eliza and I met in college,</i>
- 94
- 00:04:45,853 --> 00:04:48,086
- <i> and we've been married</i>
- <i> for seven years.</i>
- 95
- 00:04:48,088 --> 00:04:50,355
- <i> We live in Pittsburgh,</i>
- <i> where I'm from,</i>
- 96
- 00:04:50,357 --> 00:04:52,324
- <i> and we have three boys,</i>
- 97
- 00:04:52,326 --> 00:04:53,925
- <i> I've spent most of my career</i>
- 98
- 00:04:53,927 --> 00:04:56,628
- <i> as a database administrator.</i>
- 99
- 00:04:56,630 --> 00:04:59,831
- <i> But for the past</i>
- <i> two years, I've been</i>
- <i> consumed with bitcoin.</i>
- 100
- 00:05:01,768 --> 00:05:05,671
- <i> Bitcoins come</i>
- <i> into existence through</i>
- <i> a process called mining.</i>
- 101
- 00:05:05,673 --> 00:05:08,507
- <i> I build computers</i>
- <i> to mine for bitcoins.</i>
- 102
- 00:05:10,643 --> 00:05:13,011
- I'm glad that
- it's finally getting
- a little bit cooler out.
- 103
- 00:05:13,013 --> 00:05:15,781
- My wife won't be as angry
- that the basement is so hot.
- 104
- 00:05:17,483 --> 00:05:20,952
- I've still got a bunch of mining
- rigs running right now.
- 105
- 00:05:20,954 --> 00:05:23,121
- Actually they're
- right down here, if you
- wanna go take a look.
- 106
- 00:05:32,532 --> 00:05:34,232
- Here they are.
- 107
- 00:05:36,703 --> 00:05:38,937
- <i> So what is bitcoin?</i>
- 108
- 00:05:38,939 --> 00:05:41,773
- <i> Bitcoin is</i>
- <i> a revolutionary technology</i>
- 109
- 00:05:41,775 --> 00:05:44,609
- <i> that enables</i>
- <i> a new way to send payments</i>
- <i> over the Internet.</i>
- 110
- 00:05:44,611 --> 00:05:47,679
- - ( Beeps )
- -<i> You can think of it as</i>
- <i> an open accounting system</i>
- 111
- 00:05:47,681 --> 00:05:50,182
- <i> where thousands of computers</i>
- <i> all over the world</i>
- 112
- 00:05:50,184 --> 00:05:54,119
- <i> work together to track</i>
- <i> ownership of digital tokens</i>
- <i> called bitcoins.</i>
- 113
- 00:05:54,121 --> 00:05:56,355
- <i> When you send</i>
- <i> someone bitcoins,</i>
- 114
- 00:05:56,357 --> 00:05:59,424
- <i> the transaction is broadcast</i>
- <i> to the entire network.</i>
- 115
- 00:05:59,426 --> 00:06:01,626
- <i> After it's verified,</i>
- 116
- 00:06:01,628 --> 00:06:03,161
- <i> it's recorded</i>
- <i> in a public ledger</i>
- 117
- 00:06:03,163 --> 00:06:04,863
- <i> called the blockchain.</i>
- 118
- 00:06:04,865 --> 00:06:06,431
- <i> The blockchain</i>
- <i> contains a record</i>
- 119
- 00:06:06,433 --> 00:06:08,600
- <i> of every bitcoin</i>
- <i> transaction that has occurred</i>
- 120
- 00:06:08,602 --> 00:06:10,202
- <i> since the system began,</i>
- 121
- 00:06:10,204 --> 00:06:12,170
- <i> and it's shared</i>
- <i> and maintained on the network,</i>
- 122
- 00:06:12,172 --> 00:06:14,172
- <i> so everyone keeps the books,</i>
- <i> so to speak.</i>
- 123
- 00:06:15,675 --> 00:06:17,943
- <i> Most currencies are issued</i>
- <i> by a central authority</i>
- 124
- 00:06:17,945 --> 00:06:20,278
- <i> that controls</i>
- <i> the money supply.</i>
- 125
- 00:06:20,280 --> 00:06:22,280
- <i> Bitcoin is</i>
- <i> a peer-to-peer system,</i>
- 126
- 00:06:22,282 --> 00:06:24,282
- <i> so there is</i>
- <i> no central authority.</i>
- 127
- 00:06:24,284 --> 00:06:27,352
- <i> Instead bitcoins are</i>
- <i> issued to users</i>
- 128
- 00:06:27,354 --> 00:06:29,855
- <i> who help process transactions</i>
- <i> in the network.</i>
- 129
- 00:06:29,857 --> 00:06:33,125
- <i> This is known</i>
- <i> as bitcoin mining.</i>
- 130
- 00:06:33,127 --> 00:06:35,627
- <i> Bitcoin miners are</i>
- <i> specialized computers</i>
- 131
- 00:06:35,629 --> 00:06:37,295
- <i> that do the work</i>
- <i> required to verify</i>
- 132
- 00:06:37,297 --> 00:06:39,765
- <i> and record transactions</i>
- <i> in the blockchain.</i>
- 133
- 00:06:39,767 --> 00:06:41,533
- <i> As a reward for their work,</i>
- 134
- 00:06:41,535 --> 00:06:43,502
- <i> the miners earn bitcoins,</i>
- 135
- 00:06:43,504 --> 00:06:46,805
- <i> and this is how new bitcoins</i>
- <i> are released into circulation.</i>
- 136
- 00:06:46,807 --> 00:06:48,373
- <i> The system is programmed</i>
- 137
- 00:06:48,375 --> 00:06:51,209
- <i> so that only</i>
- <i> 21 million bitcoins</i>
- <i> will ever exist.</i>
- 138
- 00:06:51,211 --> 00:06:52,778
- <i> And as time goes by,</i>
- 139
- 00:06:52,780 --> 00:06:54,446
- <i> the mining reward decreases.</i>
- 140
- 00:06:54,448 --> 00:06:56,915
- <i> The result is</i>
- <i> a predictable supply</i>
- 141
- 00:06:56,917 --> 00:06:58,617
- <i> that's governed</i>
- <i> by scarcity,</i>
- 142
- 00:06:58,619 --> 00:07:02,087
- <i> making bitcoins</i>
- <i> somewhat like a digital gold.</i>
- 143
- 00:07:02,089 --> 00:07:04,756
- <i> It's the first currency</i>
- <i> of the Internet.</i>
- 144
- 00:07:04,758 --> 00:07:06,591
- <i> And everyone</i>
- <i> is free to use it.</i>
- 145
- 00:07:06,593 --> 00:07:09,694
- <i> With bitcoin, you can send</i>
- <i> any amount of money</i>
- 146
- 00:07:09,696 --> 00:07:11,963
- <i> to anyone anywhere</i>
- <i> in the world</i>
- 147
- 00:07:11,965 --> 00:07:13,865
- <i> as easily</i>
- <i> as sending an email.</i>
- 148
- 00:07:18,004 --> 00:07:20,472
- <i> My brother Nick</i>
- <i> is a filmmaker.</i>
- 149
- 00:07:20,474 --> 00:07:23,608
- <i> After hearing me</i>
- <i> talk about bitcoin</i>
- <i> incessantly for months,</i>
- 150
- 00:07:23,610 --> 00:07:26,111
- <i> we decided to start</i>
- <i> documenting things.</i>
- 151
- 00:07:26,113 --> 00:07:28,980
- Nick:
- <i> Hey, I don't think</i>
- <i> we'll need the small camera.</i>
- 152
- 00:07:28,982 --> 00:07:31,750
- - It can't hurt.
- - Nick:<i> No, I'd rather</i>
- <i> just leave it behind.</i>
- 153
- 00:07:31,752 --> 00:07:33,819
- I have so much equipment.
- Do you mind?
- 154
- 00:07:33,821 --> 00:07:35,654
- Damn, you really
- cramped it up, huh?
- 155
- 00:07:35,656 --> 00:07:36,955
- Not that bad.
- What do you mean?
- 156
- 00:07:36,957 --> 00:07:39,491
- - Jeez.
- - Dude, they're right there.
- 157
- 00:07:39,493 --> 00:07:41,293
- Right in the back.
- Right there.
- 158
- 00:07:41,295 --> 00:07:43,962
- Daniel:
- <i> I was convinced that bitcoin</i>
- <i> was going to be huge,</i>
- 159
- 00:07:43,964 --> 00:07:46,598
- <i> and I knew there were a lot</i>
- <i> of others like me out there.</i>
- 160
- 00:07:46,600 --> 00:07:49,167
- Zipped my keys in my pocket,
- so I don't forget 'em later.
- 161
- 00:07:54,073 --> 00:07:58,243
- Bitcoin was created
- by what's believed
- to be a pseudonym,
- 162
- 00:07:58,245 --> 00:08:00,779
- a guy named
- satoshi nakamoto.
- 163
- 00:08:00,781 --> 00:08:03,648
- Invented in '09
- by a fictitious person
- 164
- 00:08:03,650 --> 00:08:05,784
- named satoshi nakamoto...
- 165
- 00:08:05,786 --> 00:08:07,786
- Daniel:
- <i> On Halloween 2008,</i>
- 166
- 00:08:07,788 --> 00:08:10,255
- <i> someone using the name</i>
- <i> satoshi nakamoto.</i>
- 167
- 00:08:10,257 --> 00:08:12,090
- <i> Posted on a cryptography</i>
- <i> mailing list...</i>
- 168
- 00:08:17,797 --> 00:08:20,265
- <i> The post contained</i>
- <i> a link to a white paper</i>
- 169
- 00:08:20,267 --> 00:08:23,702
- <i> in which satoshi proposed</i>
- <i> a new type of payment system</i>
- <i> for the Internet.</i>
- 170
- 00:08:23,704 --> 00:08:26,638
- <i> It described a protocol that</i>
- <i> used peer-to-peer networking,</i>
- 171
- 00:08:26,640 --> 00:08:29,241
- <i> proof of work</i>
- <i> and public key cryptography.</i>
- 172
- 00:08:31,344 --> 00:08:34,346
- <i> For years, computer scientists</i>
- <i> had been experimenting</i>
- 173
- 00:08:34,348 --> 00:08:37,349
- <i> with these technologies</i>
- <i> to create digital money.</i>
- 174
- 00:08:37,351 --> 00:08:39,718
- <i> But satoshi discovered</i>
- <i> a way to combine them</i>
- 175
- 00:08:39,720 --> 00:08:41,353
- <i> that had never</i>
- <i> been done before.</i>
- 176
- 00:08:41,355 --> 00:08:44,789
- <i> In doing so,</i>
- <i> he invented bitcoin.</i>
- 177
- 00:08:44,791 --> 00:08:47,726
- <i> There are no records</i>
- <i> of nakamoto's existence</i>
- 178
- 00:08:47,728 --> 00:08:49,427
- <i> prior to the creation</i>
- <i> of bitcoin.</i>
- 179
- 00:08:49,429 --> 00:08:51,029
- <i> On his profile page,</i>
- 180
- 00:08:51,031 --> 00:08:52,964
- <i> he claimed to be</i>
- <i> a 34-year-old man</i>
- 181
- 00:08:52,966 --> 00:08:54,699
- <i> living in Japan.</i>
- 182
- 00:08:54,701 --> 00:08:57,536
- <i> Although satoshi nakamoto</i>
- <i> is a Japanese name,</i>
- 183
- 00:08:57,538 --> 00:09:00,405
- <i> he wrote in perfect English</i>
- <i> when communicating online</i>
- 184
- 00:09:00,407 --> 00:09:02,841
- <i> and went through great lengths</i>
- <i> to keep his identity unknown.</i>
- 185
- 00:09:04,143 --> 00:09:06,611
- <i> Nonetheless,</i>
- <i> programmers and cryptographers</i>
- 186
- 00:09:06,613 --> 00:09:09,948
- <i> all across the world</i>
- <i> recognized the brilliance</i>
- <i> of satoshi's design.</i>
- 187
- 00:09:09,950 --> 00:09:13,585
- <i> And began collaborating</i>
- <i> with him to further</i>
- <i> develop bitcoin.</i>
- 188
- 00:09:13,587 --> 00:09:15,820
- <i> In October of 2009,</i>
- 189
- 00:09:15,822 --> 00:09:17,589
- <i> the first exchange rate</i>
- <i> was published.</i>
- 190
- 00:09:17,591 --> 00:09:22,294
- <i> Listing the value</i>
- <i> of 1,309 bitcoins at $1.</i>
- 191
- 00:09:22,296 --> 00:09:24,863
- <i> Bitcoins were cheap,</i>
- <i>and through the following year,</i>
- 192
- 00:09:24,865 --> 00:09:27,032
- <i> they continued to trade</i>
- <i> for fractions of a cent.</i>
- 193
- 00:09:28,301 --> 00:09:29,734
- <i> In the spring of 2010,</i>
- 194
- 00:09:29,736 --> 00:09:31,503
- <i> a Florida man named laszlo</i>
- 195
- 00:09:31,505 --> 00:09:33,939
- <i> decided to try</i>
- <i> using his bitcoins</i>
- <i> to purchase something.</i>
- 196
- 00:09:33,941 --> 00:09:36,241
- <i> He offered 10,000 bitcoins</i>
- 197
- 00:09:36,243 --> 00:09:38,276
- <i> to anyone who would</i>
- <i> buy him pizza.</i>
- 198
- 00:09:38,278 --> 00:09:40,011
- <i> A man in London accepted</i>
- 199
- 00:09:40,013 --> 00:09:41,680
- <i> and placed</i>
- <i> a long-distance phone call,</i>
- 200
- 00:09:41,682 --> 00:09:44,015
- <i> ordering him two pizzas</i>
- <i> from papa John's.</i>
- 201
- 00:09:44,017 --> 00:09:45,951
- <i> This is generally acknowledged</i>
- 202
- 00:09:45,953 --> 00:09:49,020
- <i> as the first</i>
- <i> bitcoin transaction</i>
- <i> for a tangible good.</i>
- 203
- 00:09:49,022 --> 00:09:50,989
- <i> Bitcoin was</i>
- <i> gaining momentum,</i>
- 204
- 00:09:50,991 --> 00:09:52,824
- <i> but in order</i>
- <i> for it to thrive</i>
- 205
- 00:09:52,826 --> 00:09:55,160
- <i> the coins needed to be</i>
- <i> more widely accessible.</i>
- 206
- 00:09:55,162 --> 00:09:58,430
- <i> A Tokyo-based exchange</i>
- <i> named mt. Gox was</i>
- 207
- 00:09:58,432 --> 00:10:00,832
- <i> the first on the scene</i>
- <i>to take hold of the marketplace</i>
- 208
- 00:10:00,834 --> 00:10:02,634
- <i> and trading volume</i>
- <i> started to pick up.</i>
- 209
- 00:10:02,636 --> 00:10:04,636
- <i> By November 2010,</i>
- 210
- 00:10:04,638 --> 00:10:07,138
- <i> already 4 million bitcoins</i>
- <i> had been mined.</i>
- 211
- 00:10:07,140 --> 00:10:10,408
- <i> And the exchange price</i>
- <i>briefly spiked to 50¢ per coin.</i>
- 212
- 00:10:10,410 --> 00:10:13,812
- <i> The market awoke and bitcoin</i>
- <i> was starting to look like</i>
- 213
- 00:10:13,814 --> 00:10:16,815
- <i> it might have real potential</i>
- <i> as a currency.</i>
- 214
- 00:10:16,817 --> 00:10:19,651
- His name is Julian Assange.
- 215
- 00:10:19,653 --> 00:10:21,586
- <i> Assange and his colleagues</i>
- 216
- 00:10:21,588 --> 00:10:24,189
- <i> collect confidential</i>
- <i> information and then</i>
- <i> make it public.</i>
- 217
- 00:10:24,191 --> 00:10:27,459
- The release of 250,000
- state department documents
- 218
- 00:10:27,461 --> 00:10:30,495
- no doubt presents a serious
- dilemma for this country.
- 219
- 00:10:30,497 --> 00:10:32,497
- Daniel:
- <i> Following a massive release</i>
- 220
- 00:10:32,499 --> 00:10:34,499
- <i> of secret</i>
- <i> U.S. diplomatic cables,</i>
- 221
- 00:10:34,501 --> 00:10:37,068
- <i> donations to wikileaks</i>
- <i> were blocked</i>
- 222
- 00:10:37,070 --> 00:10:39,671
- <i> by bank of America,</i>
- <i> visa, mastercard,</i>
- 223
- 00:10:39,673 --> 00:10:42,173
- <i> PayPal and Western union.</i>
- 224
- 00:10:42,175 --> 00:10:45,043
- <i> An article in "pc world"</i>
- <i> suggested that bitcoin</i>
- 225
- 00:10:45,045 --> 00:10:46,611
- <i> could be used</i>
- <i> as a workaround</i>
- 226
- 00:10:46,613 --> 00:10:48,413
- <i> to send donations</i>
- <i> to wikileaks.</i>
- 227
- 00:10:48,415 --> 00:10:50,949
- <i> One of satoshi's</i>
- <i> last known posts</i>
- 228
- 00:10:50,951 --> 00:10:52,851
- <i> was in response</i>
- <i> to the article and stated...</i>
- 229
- 00:11:01,293 --> 00:11:02,994
- <i> Shortly after that</i>
- 230
- 00:11:02,996 --> 00:11:04,829
- <i> satoshi disappeared</i>
- <i> from the forums</i>
- 231
- 00:11:04,831 --> 00:11:07,732
- <i> and was never</i>
- <i> heard from again.</i>
- 232
- 00:11:07,734 --> 00:11:11,569
- <i> Two months later</i>
- <i> the silk road anonymous</i>
- <i> marketplace was launched.</i>
- 233
- 00:11:11,571 --> 00:11:13,938
- <i> It functioned</i>
- <i> as an online black market</i>
- 234
- 00:11:13,940 --> 00:11:15,840
- <i> for drugs</i>
- <i> and other illicit goods</i>
- 235
- 00:11:15,842 --> 00:11:17,742
- <i> and used bitcoin</i>
- <i> exclusively,</i>
- 236
- 00:11:17,744 --> 00:11:19,077
- <i> because it made</i>
- <i> the money trail</i>
- 237
- 00:11:19,079 --> 00:11:21,079
- <i> nearly impossible</i>
- <i> to trace.</i>
- 238
- 00:11:21,081 --> 00:11:23,148
- <i> The silk road</i>
- <i> caught the attention</i>
- 239
- 00:11:23,150 --> 00:11:25,150
- <i> of New York senator</i>
- <i> Charles schumer</i>
- 240
- 00:11:25,152 --> 00:11:26,985
- <i> who was outraged</i>
- <i> and publicly called</i>
- 241
- 00:11:26,987 --> 00:11:29,254
- <i> for a crackdown</i>
- <i> on the site.</i>
- 242
- 00:11:29,256 --> 00:11:32,190
- Heroin, opium,
- cannabis, ecstasy,
- 243
- 00:11:32,192 --> 00:11:33,825
- - psychedelics, stimulants.
- -<i> ( Camera clicks )</i>
- 244
- 00:11:33,827 --> 00:11:35,160
- It's unbelievable.
- 245
- 00:11:35,162 --> 00:11:36,961
- Daniel:
- <i> Throughout all this,</i>
- 246
- 00:11:36,963 --> 00:11:38,797
- <i> the exchange price</i>
- <i> continued to climb.</i>
- 247
- 00:11:38,799 --> 00:11:41,099
- <i> By February of 2011,</i>
- 248
- 00:11:41,101 --> 00:11:43,468
- <i> bitcoin reached parity</i>
- <i> with the U.S. dollar.</i>
- 249
- 00:11:43,470 --> 00:11:46,538
- <i> Sparking an influx</i>
- <i> of new users and speculators.</i>
- 250
- 00:11:46,540 --> 00:11:50,608
- <i> By June the price had soared</i>
- <i> to a peak of $31</i>
- 251
- 00:11:50,610 --> 00:11:52,811
- <i> before it came</i>
- <i> crashing down.</i>
- 252
- 00:11:52,813 --> 00:11:56,347
- <i> As the market tanked,</i>
- <i> the mt. Gox exchange</i>
- <i> was hacked,</i>
- 253
- 00:11:56,349 --> 00:11:58,149
- <i> further shaking</i>
- <i> the confidence of investors</i>
- 254
- 00:11:58,151 --> 00:11:59,884
- <i> and hammering the price</i>
- <i> all the way down</i>
- 255
- 00:11:59,886 --> 00:12:01,986
- <i> to the $2 range</i>
- <i> by October.</i>
- 256
- 00:12:01,988 --> 00:12:04,923
- <i> While bitcoin enthusiasts</i>
- <i> kept hope,</i>
- 257
- 00:12:04,925 --> 00:12:07,092
- <i> skeptics were quick</i>
- <i> to share their hindsights</i>
- 258
- 00:12:07,094 --> 00:12:09,661
- <i> and rants on blogs</i>
- <i> and in news articles.</i>
- 259
- 00:12:09,663 --> 00:12:11,596
- <i> Many thought that</i>
- <i> the party was over</i>
- 260
- 00:12:11,598 --> 00:12:14,632
- <i> and that bitcoin was</i>
- <i> on its way out.</i>
- 261
- 00:12:14,634 --> 00:12:17,235
- I went online and I bought
- one bitcoin last night.
- 262
- 00:12:17,237 --> 00:12:20,171
- Really? It's the future.
- 263
- 00:12:20,173 --> 00:12:21,172
- I don't know.
- 264
- 00:12:21,174 --> 00:12:22,173
- It didn't feel real.
- 265
- 00:12:22,175 --> 00:12:24,175
- No. Real's gonna change.
- 266
- 00:12:25,177 --> 00:12:27,746
- Just watch.
- 267
- 00:12:27,748 --> 00:12:30,081
- Today I sent
- a total of...
- 268
- 00:12:31,350 --> 00:12:33,685
- 2700 bitcoins
- 269
- 00:12:33,687 --> 00:12:35,120
- to butterfly labs.
- 270
- 00:12:35,122 --> 00:12:38,590
- <i> I purchased, basically,</i>
- <i> a custom-designed</i>
- 271
- 00:12:38,592 --> 00:12:41,493
- <i> bitcoin-mining</i>
- <i> supercomputer.</i>
- 272
- 00:12:41,495 --> 00:12:43,228
- If bitcoin fails...
- 273
- 00:12:44,497 --> 00:12:46,231
- Everything I have
- is worthless.
- 274
- 00:12:46,233 --> 00:12:48,800
- ( Stammers )
- The bitcoins I have,
- 275
- 00:12:48,802 --> 00:12:50,568
- the computers,
- the mining system
- 276
- 00:12:50,570 --> 00:12:52,170
- was all a waste of money.
- 277
- 00:12:55,508 --> 00:12:57,575
- But if it succeeds, then...
- 278
- 00:12:59,812 --> 00:13:02,313
- It will have been worth it,
- I think.
- 279
- 00:13:02,315 --> 00:13:05,650
- - ( Beeps )
- -<i> The bitcoin economy was</i>
- <i> a wild west in cyberspace</i>
- 280
- 00:13:05,652 --> 00:13:08,853
- <i> that was very attractive</i>
- <i> to hackers and scammers.</i>
- 281
- 00:13:08,855 --> 00:13:12,323
- <i> Over the years,</i>
- <i> tens of thousands of coins</i>
- <i> had been stolen</i>
- 282
- 00:13:12,325 --> 00:13:14,626
- <i> and 2012 proved no different.</i>
- 283
- 00:13:14,628 --> 00:13:17,295
- <i> Users had to be careful.</i>
- 284
- 00:13:17,297 --> 00:13:20,098
- If somebody steals
- your bitcoins, there are
- no consumer protections.
- 285
- 00:13:20,100 --> 00:13:22,300
- Sorry, they're gone.
- You lost your bitcoins?
- They're gone
- 286
- 00:13:22,302 --> 00:13:24,102
- and you're not going
- to get them back.
- 287
- 00:13:24,104 --> 00:13:27,005
- <i> But after months of stagnation</i>
- <i> on the exchanges,</i>
- 288
- 00:13:27,007 --> 00:13:29,474
- <i> the bitcoin price was</i>
- <i> on the rise again.</i>
- 289
- 00:13:29,476 --> 00:13:32,844
- The price of bitcoin today
- is around $7 u.S.D.,
- 290
- 00:13:32,846 --> 00:13:36,347
- which just had a nice
- little bump this week.
- 291
- 00:13:36,349 --> 00:13:39,350
- <i> By the end of the year,</i>
- <i> the blogging site wordpress</i>
- 292
- 00:13:39,352 --> 00:13:42,320
- <i> announced it would start</i>
- <i> accepting bitcoin payments.</i>
- 293
- 00:13:42,322 --> 00:13:45,089
- <i> And in early 2013,</i>
- <i> the discussion forum reddit</i>
- 294
- 00:13:45,091 --> 00:13:46,925
- <i> also announced</i>
- <i> bitcoin support.</i>
- 295
- 00:13:46,927 --> 00:13:50,228
- <i>They were the first major sites</i>
- <i> to incorporate bitcoin,</i>
- 296
- 00:13:50,230 --> 00:13:52,463
- <i> and these milestones</i>
- <i> signaled the beginning</i>
- 297
- 00:13:52,465 --> 00:13:53,898
- <i> of mainstream acceptance.</i>
- 298
- 00:14:01,540 --> 00:14:05,109
- Bitcoin is the most subversive
- technology on the planet.
- 299
- 00:14:05,111 --> 00:14:08,046
- This is a system
- that is growing around
- the entire world.
- 300
- 00:14:08,048 --> 00:14:11,282
- So if it works,
- if this experiment
- continues to grow,
- 301
- 00:14:11,284 --> 00:14:14,652
- it doesn't just help
- a few of us in this state
- or in the country,
- 302
- 00:14:14,654 --> 00:14:16,621
- but it actually helps
- everyone around the world.
- 303
- 00:14:19,425 --> 00:14:20,825
- ( People chattering )
- 304
- 00:14:20,827 --> 00:14:22,493
- Daniel:
- <i> As the bitcoin price</i>
- <i> hovered around</i>
- 305
- 00:14:22,495 --> 00:14:25,396
- <i> it's previous</i>
- <i> all-time high of $31,</i>
- 306
- 00:14:25,398 --> 00:14:28,099
- <i> I visited</i>
- <i> a libertarian conference</i>
- <i> in New Hampshire.</i>
- 307
- 00:14:28,101 --> 00:14:30,602
- It lost 20% and then it
- gained 20%
- 308
- 00:14:30,604 --> 00:14:32,437
- in 20 minutes.
- 309
- 00:14:32,439 --> 00:14:34,005
- It is--
- they're silly.
- 310
- 00:14:35,074 --> 00:14:36,674
- Daniel:
- <i> Libertarians are among</i>
- 311
- 00:14:36,676 --> 00:14:38,276
- <i> the earliest adopters</i>
- <i> of bitcoin.</i>
- 312
- 00:14:38,278 --> 00:14:40,845
- <i> Its nature as a currency</i>
- <i> that isn't controlled</i>
- 313
- 00:14:40,847 --> 00:14:43,815
- <i> by central banks</i>
- <i> makes it attractive</i>
- <i> to this community.</i>
- 314
- 00:14:43,817 --> 00:14:46,150
- Once I was able to kind
- of grok the basic concept,
- 315
- 00:14:46,152 --> 00:14:48,853
- it was like, "this is
- the perfect money. "
- 316
- 00:14:48,855 --> 00:14:51,522
- Daniel:
- <i> This is what</i>
- <i> a bitcoin address looks like.</i>
- 317
- 00:14:51,524 --> 00:14:53,825
- <i> Think of this long string</i>
- <i> of characters</i>
- 318
- 00:14:53,827 --> 00:14:56,294
- <i> as an account number where</i>
- <i> your bitcoins are stored.</i>
- 319
- 00:14:56,296 --> 00:14:58,329
- <i> When you send</i>
- <i> or receive bitcoins,</i>
- 320
- 00:14:58,331 --> 00:15:00,798
- <i> they are sent</i>
- <i> to these addresses.</i>
- 321
- 00:15:00,800 --> 00:15:02,834
- <i> The addresses are</i>
- <i> long and hard to remember</i>
- 322
- 00:15:02,836 --> 00:15:05,637
- <i> so using a phone</i>
- <i> to scan a q.R. Code</i>
- 323
- 00:15:05,639 --> 00:15:07,805
- <i> is a fast and easy way</i>
- <i> to read them.</i>
- 324
- 00:15:07,807 --> 00:15:09,540
- <i> Another good thing to know</i>
- 325
- 00:15:09,542 --> 00:15:10,975
- <i> is that bitcoins</i>
- <i> can be broken down</i>
- 326
- 00:15:10,977 --> 00:15:12,677
- <i> to eight decimal places.</i>
- 327
- 00:15:12,679 --> 00:15:15,280
- <i> This means that you can send</i>
- <i> fractions of a bitcoin.</i>
- 328
- 00:15:15,282 --> 00:15:18,683
- <i> So any amount of money</i>
- <i> can be represented.</i>
- 329
- 00:15:18,685 --> 00:15:21,920
- <i> With bitcoin,</i>
- <i> every transaction is public.</i>
- 330
- 00:15:21,922 --> 00:15:24,422
- <i> Everyone can see the amount</i>
- <i> that is being sent</i>
- 331
- 00:15:24,424 --> 00:15:27,892
- <i> without necessarily knowing</i>
- <i> the identity of the sender.</i>
- 332
- 00:15:27,894 --> 00:15:30,929
- <i> These guys even have one</i>
- <i> of the first bitcoin a.T.M.S.</i>
- 333
- 00:15:30,931 --> 00:15:34,132
- You just scan
- your q.R. Code
- on your phone,
- 334
- 00:15:34,134 --> 00:15:36,401
- <i> put in the dollar bills</i>
- <i> and press the button.</i>
- 335
- 00:15:36,403 --> 00:15:38,937
- Bam. Done.
- Perfect.
- 336
- 00:15:38,939 --> 00:15:41,306
- <i> You now traded</i>
- <i> your worthless piece</i>
- <i> of paper</i>
- 337
- 00:15:41,308 --> 00:15:43,274
- <i> for real currency.</i>
- 338
- 00:15:43,276 --> 00:15:45,310
- It's like, "end the fed?"
- It's like, seriously,
- you think
- 339
- 00:15:45,312 --> 00:15:46,744
- you're gonna end the fed?
- You're not gonna end the fed.
- 340
- 00:15:46,746 --> 00:15:48,079
- You're not gonna change
- anything about the fed.
- 341
- 00:15:48,081 --> 00:15:50,114
- - Transcend the fed.
- - Bypass the fed.
- 342
- 00:15:50,116 --> 00:15:51,916
- - Right, yeah. ( Chuckles )
- - That's what you should do.
- 343
- 00:15:51,918 --> 00:15:54,919
- My concern is how
- the governments will react.
- 344
- 00:15:54,921 --> 00:15:57,255
- They can't kill
- or stop bitcoin,
- 345
- 00:15:57,257 --> 00:16:00,658
- but they could impede it
- and they could get in the way
- of its development.
- 346
- 00:16:04,430 --> 00:16:06,931
- Daniel:
- <i> A few weeks later</i>
- <i> across the ocean,</i>
- 347
- 00:16:06,933 --> 00:16:09,167
- <i> a financial crisis was</i>
- <i> reaching a breaking point</i>
- 348
- 00:16:09,169 --> 00:16:10,802
- <i> on the island of Cyprus.</i>
- 349
- 00:16:10,804 --> 00:16:13,137
- Cyprus is on the brink
- of going bust.
- 350
- 00:16:13,139 --> 00:16:15,273
- The rest of Europe
- has agreed to a bailout,
- 351
- 00:16:15,275 --> 00:16:19,277
- but only if Cyprus raids
- people's bank accounts
- for quick hard cash.
- 352
- 00:16:19,279 --> 00:16:21,779
- Woman:
- <i> People tried to get money</i>
- <i> out of the cash machines</i>
- 353
- 00:16:21,781 --> 00:16:24,115
- <i> but electronic transfers</i>
- <i> have been stopped.</i>
- 354
- 00:16:24,117 --> 00:16:26,351
- - Never did I think
- that they would...
- - ( People chanting )
- 355
- 00:16:26,353 --> 00:16:28,119
- ...in a completely
- unprecedented manner
- 356
- 00:16:28,121 --> 00:16:29,954
- resort to stealing money
- 357
- 00:16:29,956 --> 00:16:32,323
- from people's
- bank accounts.
- 358
- 00:16:32,325 --> 00:16:34,225
- Daniel:
- <i> The Cypriots had</i>
- <i> placed their trust</i>
- 359
- 00:16:34,227 --> 00:16:37,996
- <i> in the banking system</i>
- <i> and it had failed them.</i>
- 360
- 00:16:37,998 --> 00:16:41,332
- <i> As news of the crisis</i>
- <i> spread around the world,</i>
- 361
- 00:16:41,334 --> 00:16:43,468
- <i> bitcoin believers</i>
- <i> were quick to point it out</i>
- 362
- 00:16:43,470 --> 00:16:45,436
- <i> as an example</i>
- <i> of why a currency</i>
- 363
- 00:16:45,438 --> 00:16:47,505
- <i> free from government control</i>
- <i> was needed.</i>
- 364
- 00:16:47,507 --> 00:16:49,941
- There's actually
- bitcoin atms
- 365
- 00:16:49,943 --> 00:16:52,310
- apparently being
- set up in Cyprus.
- 366
- 00:16:52,312 --> 00:16:54,312
- Man:
- <i> All of a sudden,</i>
- <i> bitcoin looks</i>
- 367
- 00:16:54,314 --> 00:16:56,014
- <i> like an attractive prospect.</i>
- 368
- 00:16:57,983 --> 00:16:59,817
- Daniel:
- <i> While this was</i>
- <i> happening in Cyprus,</i>
- 369
- 00:16:59,819 --> 00:17:01,586
- <i> regulators</i>
- <i> at the U.S. treasury</i>
- 370
- 00:17:01,588 --> 00:17:04,222
- <i> weighed in on bitcoin.</i>
- 371
- 00:17:04,224 --> 00:17:07,692
- <i> The financial crimes</i>
- <i> enforcement network,</i>
- <i> known as fincen,</i>
- 372
- 00:17:07,694 --> 00:17:10,762
- <i> issued its first</i>
- <i> regulatory guidance</i>
- <i> on virtual currencies.</i>
- 373
- 00:17:11,964 --> 00:17:13,965
- <i> The guidance implied</i>
- <i> that bitcoin,</i>
- 374
- 00:17:13,967 --> 00:17:16,200
- <i> in and of itself,</i>
- <i> was not illegal.</i>
- 375
- 00:17:20,372 --> 00:17:22,573
- <i> It was the perfect storm.</i>
- 376
- 00:17:22,575 --> 00:17:25,043
- <i> The situation</i>
- <i> in Cyprus suggested</i>
- 377
- 00:17:25,045 --> 00:17:27,912
- <i> that bitcoin could function</i>
- <i> as a financial safe haven.</i>
- 378
- 00:17:27,914 --> 00:17:30,481
- <i> And the approving nod</i>
- <i> of U.S. regulators</i>
- 379
- 00:17:30,483 --> 00:17:32,583
- <i> was a green light</i>
- <i> for investors.</i>
- 380
- 00:17:32,585 --> 00:17:34,252
- <i> The market agreed</i>
- 381
- 00:17:34,254 --> 00:17:36,421
- <i> and the exchange</i>
- <i> price continued to climb.</i>
- 382
- 00:17:36,423 --> 00:17:38,656
- ( Beeps )
- 383
- 00:17:38,658 --> 00:17:41,926
- It's moving from the super
- super-early-adopter phase
- 384
- 00:17:41,928 --> 00:17:43,661
- to possibly
- the early-adopter phase.
- 385
- 00:17:43,663 --> 00:17:44,962
- Daniel:
- <i> Bitcoin was getting </i>
- 386
- 00:17:44,964 --> 00:17:46,664
- <i> international exposure</i>
- 387
- 00:17:46,666 --> 00:17:48,633
- <i> and people were starting</i>
- <i> to pay attention.</i>
- 388
- 00:17:51,303 --> 00:17:55,473
- <i> This is actually a live,</i>
- <i> updated map of the globe</i>
- 389
- 00:17:55,475 --> 00:17:59,343
- <i> and the lines represent</i>
- <i> bitcoin clients.</i>
- 390
- 00:17:59,345 --> 00:18:01,646
- <i> Basically where the bitcoin</i>
- <i> software is running.</i>
- 391
- 00:18:01,648 --> 00:18:05,483
- And the length
- of the line determines
- 392
- 00:18:05,485 --> 00:18:07,819
- how long it's been online
- or how active it's been.
- 393
- 00:18:07,821 --> 00:18:09,654
- And every time
- I look at this,
- 394
- 00:18:09,656 --> 00:18:11,923
- I swear it gets more
- and more saturated.
- 395
- 00:18:11,925 --> 00:18:14,258
- You can almost see
- an outline of the U.S. now.
- 396
- 00:18:14,260 --> 00:18:16,260
- South America--
- you're starting to get it.
- 397
- 00:18:16,262 --> 00:18:18,029
- But the big news,
- in my opinion,
- 398
- 00:18:18,031 --> 00:18:19,864
- <i> is this-- China.</i>
- 399
- 00:18:19,866 --> 00:18:23,301
- <i> You used to see one,</i>
- <i> two, three, maybe.</i>
- 400
- 00:18:23,303 --> 00:18:27,638
- <i> And this is all within</i>
- <i> the last three weeks or so.</i>
- 401
- 00:18:27,640 --> 00:18:30,007
- <i> That's the most</i>
- <i> I've ever seen in China.</i>
- 402
- 00:18:30,009 --> 00:18:32,176
- Look down here.
- Indonesia, Singapore,
- 403
- 00:18:32,178 --> 00:18:33,744
- Australia, New Zealand.
- 404
- 00:18:41,286 --> 00:18:44,255
- <i> The following week</i>
- <i> it snowed in pittsburg.</i>
- 405
- 00:18:44,257 --> 00:18:47,725
- <i> I was eagerly</i>
- <i> awaiting the delivery</i>
- <i> of two avalon asics,</i>
- 406
- 00:18:47,727 --> 00:18:49,494
- <i> state of the art computers</i>
- 407
- 00:18:49,496 --> 00:18:52,597
- <i> with chips</i>
- <i> specifically designed</i>
- <i> for mining bitcoins.</i>
- 408
- 00:18:52,599 --> 00:18:54,298
- <i> Yifu guo is</i>
- <i> at the forefront</i>
- 409
- 00:18:54,300 --> 00:18:56,267
- <i> of the new generation</i>
- <i> of hardware,</i>
- 410
- 00:18:56,269 --> 00:18:57,735
- <i> and is the first</i>
- <i> to bring them to market.</i>
- 411
- 00:18:57,737 --> 00:18:59,670
- Everybody,
- including myself,
- 412
- 00:18:59,672 --> 00:19:00,972
- had severely
- underestimated
- 413
- 00:19:00,974 --> 00:19:02,907
- the mining market
- and how big it is.
- 414
- 00:19:02,909 --> 00:19:04,275
- Daniel:
- <i> When bitcoin began,</i>
- 415
- 00:19:04,277 --> 00:19:06,410
- <i> a standard laptop</i>
- <i> was powerful enough</i>
- 416
- 00:19:06,412 --> 00:19:09,113
- <i> to mine hundreds of bitcoins</i>
- <i> in a matter of days.</i>
- 417
- 00:19:09,115 --> 00:19:12,817
- <i> The technology evolved rapidly</i>
- <i> over the past couple of years.</i>
- 418
- 00:19:12,819 --> 00:19:14,652
- A lot of people
- are getting into it
- 419
- 00:19:14,654 --> 00:19:16,154
- or still trying
- to catch up.
- 420
- 00:19:18,957 --> 00:19:20,992
- Daniel:
- <i> I was on vacation</i>
- <i> with my family</i>
- 421
- 00:19:20,994 --> 00:19:23,161
- <i> when the new miners were</i>
- <i> scheduled to arrive.</i>
- 422
- 00:19:23,163 --> 00:19:26,430
- <i> The price of bitcoin</i>
- <i> had rocketed to $77</i>
- 423
- 00:19:26,432 --> 00:19:28,966
- <i> so I asked some friends</i>
- <i> to wait at my house</i>
- 424
- 00:19:28,968 --> 00:19:30,501
- <i> to get them running</i>
- <i> as soon as possible.</i>
- 425
- 00:19:30,503 --> 00:19:34,138
- Mancini:
- <i> All right!</i>
- <i> ( Laughs )</i>
- 426
- 00:19:34,140 --> 00:19:36,474
- - I hope this is good.
- I hope it's worthwhile.
- - Oh, definitely.
- 427
- 00:19:37,943 --> 00:19:39,477
- These are
- new computer parts here...
- 428
- 00:19:39,479 --> 00:19:41,445
- - Excellent, excellent.
- - ...Fresh in from China.
- 429
- 00:19:41,447 --> 00:19:44,315
- - ( Laughs )
- - All right, it's not
- official until you sign.
- 430
- 00:19:44,317 --> 00:19:46,017
- There we go.
- 431
- 00:19:48,287 --> 00:19:50,421
- Nick:
- <i> Yeah, we'll see.</i>
- <i> Maybe down the road</i>
- 432
- 00:19:50,423 --> 00:19:51,956
- <i> you guys will start</i>
- <i> accepting bitcoin</i>
- <i> one day, I bet.</i>
- 433
- 00:19:51,958 --> 00:19:53,591
- - That's cool.
- -<i> Just a matter of time.</i>
- 434
- 00:19:53,593 --> 00:19:55,193
- Driver:
- <i> Good luck to you guys.</i>
- <i> All right.</i>
- 435
- 00:19:56,728 --> 00:19:57,929
- Mancini:
- <i> I notified Dan</i>
- 436
- 00:19:57,931 --> 00:19:59,063
- <i> and he has</i>
- <i> a little response here.</i>
- 437
- 00:20:11,376 --> 00:20:13,511
- Welcome to
- the financial renaissance.
- 438
- 00:20:14,746 --> 00:20:16,781
- 192.168.1.140.
- 439
- 00:20:16,783 --> 00:20:18,683
- 255.255.255.0.
- 440
- 00:20:18,685 --> 00:20:20,685
- 192.168.1.1.
- 441
- 00:20:20,687 --> 00:20:22,520
- That's the default gateway.
- 442
- 00:20:22,522 --> 00:20:26,591
- My first pull is gonna be
- stratum.Ozc.In, port 3333.
- 443
- 00:20:26,593 --> 00:20:29,026
- Port 80,
- but I can do 3333.
- 444
- 00:20:29,028 --> 00:20:31,596
- <i> And when everything's all</i>
- <i> said and done, for at least</i>
- <i> a little while,</i>
- 445
- 00:20:31,598 --> 00:20:34,932
- it should be pulling in
- 10 to 12 coins a day.
- 446
- 00:20:34,934 --> 00:20:37,368
- That's gonna change though,
- after another week.
- 447
- 00:20:37,370 --> 00:20:39,303
- It's gonna get
- dropped down to, like, eight,
- 448
- 00:20:39,305 --> 00:20:41,606
- - just because the difficulty's
- just going through the roof.
- - Yeah.
- 449
- 00:20:41,608 --> 00:20:43,040
- Everybody's firing
- these things up,
- 450
- 00:20:43,042 --> 00:20:44,742
- so it's always
- a race to stay ahead
- 451
- 00:20:44,744 --> 00:20:48,112
- <i> and try to be the first guy</i>
- <i> with the hardware, you know?</i>
- 452
- 00:20:48,114 --> 00:20:50,214
- Oh, I'm getting pings.
- Whoo!
- 453
- 00:20:50,216 --> 00:20:51,916
- Mancini:
- <i> Yup, we're kicking.</i>
- 454
- 00:20:51,918 --> 00:20:53,317
- We are accepting shares.
- 455
- 00:20:53,319 --> 00:20:54,418
- It is live.
- 456
- 00:20:54,420 --> 00:20:56,754
- <i> We've got the Merlot!</i>
- 457
- 00:20:56,756 --> 00:20:58,723
- ( Both laugh )
- 458
- 00:20:58,725 --> 00:21:01,993
- ( Mumbles )
- 459
- 00:21:03,829 --> 00:21:05,463
- <i> Hey, that looks</i>
- <i> like johan.</i>
- 460
- 00:21:05,465 --> 00:21:08,633
- Say, "I'm going
- to college 'cause
- my dad mines bitcoins."
- 461
- 00:21:08,635 --> 00:21:11,435
- Dad going bitcoins.
- 462
- 00:21:11,437 --> 00:21:13,037
- ( Laughs )
- 463
- 00:21:17,676 --> 00:21:20,311
- Nick:
- <i> So, big day today, huh?</i>
- 464
- 00:21:20,313 --> 00:21:22,847
- Big day.
- Look at that. 104.
- 465
- 00:21:22,849 --> 00:21:25,182
- Current bitcoin price.
- Broke 100 today.
- 466
- 00:21:25,184 --> 00:21:28,819
- It is April fool's day.
- 467
- 00:21:28,821 --> 00:21:32,089
- The price rising
- so insanely high
- 468
- 00:21:32,091 --> 00:21:34,425
- is kind of
- a little bit unprecedented,
- 469
- 00:21:34,427 --> 00:21:37,628
- so-- I mean, it's bound
- to pop a little bit.
- 470
- 00:21:37,630 --> 00:21:39,730
- Maybe.
- I don't know.
- 471
- 00:21:39,732 --> 00:21:41,932
- Maybe it'll be at 225
- in a week and a half,
- 472
- 00:21:41,934 --> 00:21:45,236
- so who knows?
- Bitcoin styles--
- 473
- 00:21:45,238 --> 00:21:47,038
- could go up,
- could go down.
- 474
- 00:21:53,412 --> 00:21:55,146
- Daniel:
- <i> As the price passed 100,</i>
- 475
- 00:21:55,148 --> 00:21:57,648
- <i> we took a trip to visit</i>
- <i> Gavin andresen.</i>
- 476
- 00:21:59,451 --> 00:22:01,919
- <i> He is known to have</i>
- <i> worked closely with satoshi</i>
- 477
- 00:22:01,921 --> 00:22:03,321
- <i> during bitcoin's early days.</i>
- 478
- 00:22:10,996 --> 00:22:12,763
- Here's the train tracks,
- and he did say
- 479
- 00:22:12,765 --> 00:22:14,565
- there would be train tracks
- maybe passing through.
- 480
- 00:22:17,402 --> 00:22:19,470
- Here we go.
- This is Gavin's house.
- 481
- 00:22:25,477 --> 00:22:27,078
- <i> Gavin is one</i>
- <i> of the last people</i>
- 482
- 00:22:27,080 --> 00:22:29,447
- <i> to communicate with satoshi</i>
- <i> before he disappeared.</i>
- 483
- 00:22:32,617 --> 00:22:36,087
- Morning.
- This is my brother Nick
- 484
- 00:22:36,089 --> 00:22:38,122
- - and his wife Ashley.
- - Nice to meet you.
- 485
- 00:22:38,124 --> 00:22:39,623
- - Ashley:
- <i> Hi, nice to meet you. </i>
- - Nice to meet you.
- 486
- 00:22:39,625 --> 00:22:41,926
- - Daniel: Found the place
- okay, so--
- - good.
- 487
- 00:22:41,928 --> 00:22:44,128
- We're very excited
- to be here.
- 488
- 00:22:44,130 --> 00:22:46,263
- Come in.
- This is my humble house.
- 489
- 00:22:46,265 --> 00:22:49,333
- -<i> ( Door closes ) </i>
- - That's where I work.
- This is where I live.
- 490
- 00:22:52,471 --> 00:22:55,406
- - Beautiful home.
- - Well, thanks.
- 491
- 00:22:55,408 --> 00:22:57,975
- Nick:
- <i> A little higher, please.</i>
- <i> Right there. </i> Great.
- 492
- 00:22:57,977 --> 00:23:00,077
- -<i> Got it. </i>
- - ( Daniel chuckles )
- 493
- 00:23:00,079 --> 00:23:02,313
- <i> How did you first</i>
- <i> get into bitcoin?</i>
- 494
- 00:23:02,315 --> 00:23:04,248
- <i> Tell us a little bit</i>
- <i> of the story of how</i>
- <i> you got involved.</i>
- 495
- 00:23:04,250 --> 00:23:06,484
- I had been working at umass
- 496
- 00:23:06,486 --> 00:23:07,818
- as a staff programmer
- 497
- 00:23:07,820 --> 00:23:09,153
- in the computer science
- 498
- 00:23:09,155 --> 00:23:10,654
- department research group.
- 499
- 00:23:10,656 --> 00:23:12,990
- <i> My wife's</i>
- <i> a Professor at umass.</i>
- 500
- 00:23:12,992 --> 00:23:14,792
- <i> I actually quit</i>
- <i> that job before going</i>
- 501
- 00:23:14,794 --> 00:23:17,228
- <i> on a six-month sabbatical</i>
- <i> in Australia.</i>
- 502
- 00:23:17,230 --> 00:23:19,997
- I just happened
- to read a little blurb
- 503
- 00:23:19,999 --> 00:23:22,133
- <i> online in somebody's blog</i>
- 504
- 00:23:22,135 --> 00:23:24,268
- that mentioned
- this bitcoin project,
- 505
- 00:23:24,270 --> 00:23:27,037
- which is an open-source
- attempt to do money.
- 506
- 00:23:27,039 --> 00:23:29,039
- And it caught my interest.
- 507
- 00:23:29,041 --> 00:23:32,943
- <i> I basically</i>
- <i> just spent a few days</i>
- 508
- 00:23:32,945 --> 00:23:34,945
- <i> read everything</i>
- <i> I could about it</i>
- 509
- 00:23:34,947 --> 00:23:37,348
- <i> looked at the source code,</i>
- <i> downloaded the source code,</i>
- 510
- 00:23:37,350 --> 00:23:40,050
- thought about it
- and I really couldn't
- convince myself
- 511
- 00:23:40,052 --> 00:23:41,919
- that it would not work.
- 512
- 00:23:41,921 --> 00:23:43,854
- <i> It seemed like satoshi</i>
- <i> had thought of everything.</i>
- 513
- 00:23:45,424 --> 00:23:46,657
- Since then...
- 514
- 00:23:48,126 --> 00:23:50,261
- I've just been sucked down
- the rabbit hole.
- 515
- 00:23:50,263 --> 00:23:53,030
- Daniel:
- <i> Bitcoin is</i>
- <i> open-source software.</i>
- 516
- 00:23:53,032 --> 00:23:54,632
- <i> With open-source software,</i>
- 517
- 00:23:54,634 --> 00:23:56,400
- <i> the code is</i>
- <i> publicly available.</i>
- 518
- 00:23:56,402 --> 00:23:59,103
- <i> Anyone can look at it</i>
- <i> and see how it runs.</i>
- 519
- 00:23:59,105 --> 00:24:01,639
- <i> And they can also contribute</i>
- <i> their own changes.</i>
- 520
- 00:24:01,641 --> 00:24:05,276
- <i> Programmers like Gavin</i>
- <i> were able to join satoshi</i>
- <i> to work on bitcoin</i>
- 521
- 00:24:05,278 --> 00:24:07,278
- <i> simply because</i>
- <i> they were interested.</i>
- 522
- 00:24:07,280 --> 00:24:10,748
- Over time, I think
- satoshi learned to trust me.
- 523
- 00:24:10,750 --> 00:24:14,118
- <i> He could see</i>
- <i> that I didn't make</i>
- <i> very many stupid mistakes.</i>
- 524
- 00:24:14,120 --> 00:24:16,720
- I never had any personal
- connection with satoshi.
- 525
- 00:24:16,722 --> 00:24:18,489
- It was always
- purely business.
- 526
- 00:24:18,491 --> 00:24:21,225
- And I think that's because
- he was so worried about
- 527
- 00:24:21,227 --> 00:24:22,960
- people finding out
- his identity.
- 528
- 00:24:22,962 --> 00:24:26,564
- I don't know why.
- My last email to him
- 529
- 00:24:26,566 --> 00:24:28,265
- was telling him that I had
- 530
- 00:24:28,267 --> 00:24:30,734
- agreed to go visit
- the folks at the c.I.A.,
- 531
- 00:24:30,736 --> 00:24:32,736
- so... ( Laughs )
- 532
- 00:24:32,738 --> 00:24:34,472
- Whether that had something
- to do with him
- 533
- 00:24:34,474 --> 00:24:37,174
- deciding to cut off
- communication with me
- entirely--
- 534
- 00:24:37,176 --> 00:24:39,510
- <i> he had been</i>
- <i> pulling away before then,</i>
- 535
- 00:24:39,512 --> 00:24:42,580
- but the c.I.A. Invited me
- to come talk at the c.I.A.
- 536
- 00:24:42,582 --> 00:24:44,348
- And I agreed to do that.
- 537
- 00:24:46,117 --> 00:24:47,651
- Daniel:
- <i> Knowing it would surely spark</i>
- 538
- 00:24:47,653 --> 00:24:50,120
- <i> conspiracy theories,</i>
- <i> Gavin posted an announcement</i>
- 539
- 00:24:50,122 --> 00:24:52,122
- <i> on the bitcoin talk</i>
- <i> discussion forum</i>
- 540
- 00:24:52,124 --> 00:24:53,691
- <i> to head off any rumors.</i>
- 541
- 00:25:01,366 --> 00:25:03,467
- <i> Having taken on</i>
- <i> the lead developer position</i>
- 542
- 00:25:03,469 --> 00:25:05,636
- <i> since satoshi's</i>
- <i> disappearance,</i>
- 543
- 00:25:05,638 --> 00:25:08,939
- <i> Gavin found himself</i>
- <i> facing an increasing number</i>
- <i> of responsibilities</i>
- 544
- 00:25:08,941 --> 00:25:10,608
- <i> and public scrutiny.</i>
- 545
- 00:25:10,610 --> 00:25:13,043
- Do your neighbors
- know that you're kind of
- at the center
- 546
- 00:25:13,045 --> 00:25:15,913
- of one of the most
- disruptive technologies?
- 547
- 00:25:15,915 --> 00:25:20,050
- I think-- I think
- they know that I do
- this wacky bitcoin project.
- 548
- 00:25:21,953 --> 00:25:24,588
- I don't think they know
- quite how big it is yet.
- 549
- 00:25:24,590 --> 00:25:26,624
- Right now,
- 550
- 00:25:26,626 --> 00:25:29,393
- bitcoin's
- a billion-dollar project.
- 551
- 00:25:29,395 --> 00:25:31,896
- <i> When I started it was</i>
- <i> this tiny little experiment.</i>
- 552
- 00:25:31,898 --> 00:25:33,931
- And as it gets bigger,
- 553
- 00:25:33,933 --> 00:25:37,134
- the pressure
- to not screw up
- 554
- 00:25:37,136 --> 00:25:39,503
- just gets
- bigger and bigger.
- 555
- 00:25:43,808 --> 00:25:45,075
- Daniel:
- <i> Two weeks later</i>
- 556
- 00:25:45,077 --> 00:25:47,144
- <i> the price soared past 150.</i>
- 557
- 00:25:47,146 --> 00:25:48,913
- <i> And some bitcoiners woke up</i>
- 558
- 00:25:48,915 --> 00:25:51,415
- <i> to find out they were</i>
- <i> bitcoin millionaires.</i>
- 559
- 00:25:51,417 --> 00:25:53,284
- <i> 23-year-old Charlie shrem</i>
- 560
- 00:25:53,286 --> 00:25:55,920
- <i> is the c.E.O. Of a company</i>
- <i> called bitinstant.</i>
- 561
- 00:25:55,922 --> 00:26:00,090
- <i> Bitinstant was one</i>
- <i> of the first startups</i>
- <i> in the bitcoin space.</i>
- 562
- 00:26:00,092 --> 00:26:02,259
- <i> In bitcoin's infancy,</i>
- <i> people had to jump</i>
- 563
- 00:26:02,261 --> 00:26:04,261
- <i> through several hoops</i>
- <i> to buy them.</i>
- 564
- 00:26:04,263 --> 00:26:05,729
- <i> One of the only ways</i>
- 565
- 00:26:05,731 --> 00:26:07,431
- <i> was through</i>
- <i> the mt. Gox exchange,</i>
- 566
- 00:26:07,433 --> 00:26:09,466
- <i> but this process required</i>
- <i> transferring money</i>
- 567
- 00:26:09,468 --> 00:26:10,801
- <i> through several</i>
- <i> intermediaries</i>
- 568
- 00:26:10,803 --> 00:26:12,770
- <i> and could take weeks.</i>
- 569
- 00:26:12,772 --> 00:26:15,973
- <i> Charlie launched bitinstant</i>
- <i> to streamline this process.</i>
- 570
- 00:26:15,975 --> 00:26:18,709
- <i> And to help people buy</i>
- <i> bitcoins quickly.</i>
- 571
- 00:26:18,711 --> 00:26:21,078
- - Man:<i> Yeah,</i>
- <i> that's good. That's great. </i>
- -<i> ( Camera beeping )</i>
- 572
- 00:26:21,080 --> 00:26:22,746
- -<i> That's pretty nice. </i>
- - You go like that.
- 573
- 00:26:22,748 --> 00:26:24,481
- <i> Yeah, sure.</i>
- 574
- 00:26:24,483 --> 00:26:26,150
- Daniel:
- <i> Today Charlie is</i>
- <i> being photographed</i>
- 575
- 00:26:26,152 --> 00:26:27,885
- <i> for an article</i>
- <i> in "businessweek."</i>
- 576
- 00:26:27,887 --> 00:26:29,587
- Man:
- <i> One of the ideas they had</i>
- 577
- 00:26:29,589 --> 00:26:31,488
- <i> was that you're going--</i>
- <i> throwing stuff up in the air</i>
- 578
- 00:26:31,490 --> 00:26:33,524
- <i> and they were gonna add</i>
- <i> bitcoins in later on.</i>
- 579
- 00:26:33,526 --> 00:26:35,259
- - Going like that?
- -<i> Yeah.</i>
- 580
- 00:26:35,261 --> 00:26:38,929
- Shrem:
- <i> This bitcoin thing</i>
- <i> can actually change the world.</i>
- 581
- 00:26:38,931 --> 00:26:41,098
- <i> But for this thing</i>
- <i> to succeed,</i>
- 582
- 00:26:41,100 --> 00:26:42,700
- we have to figure out
- a way to get more money
- 583
- 00:26:42,702 --> 00:26:44,735
- in and out
- of the ecosystem.
- 584
- 00:26:44,737 --> 00:26:47,705
- Look out the window a bit.
- Totally-- yeah.
- 585
- 00:26:47,707 --> 00:26:49,406
- Then you can look--
- yeah, that's good.
- 586
- 00:26:49,408 --> 00:26:51,508
- And not show that
- I'm super stressed out
- right now
- 587
- 00:26:51,510 --> 00:26:54,244
- and we have thousands of orders
- that are being processed
- 588
- 00:26:54,246 --> 00:26:56,947
- and I'm bugging out,
- trying to get the new
- site launched.
- 589
- 00:26:56,949 --> 00:26:59,183
- -<i> No, don't look like that. </i>
- - It's crazy.
- 590
- 00:26:59,185 --> 00:27:00,918
- I'm trying not to,
- but it's really hard.
- 591
- 00:27:06,024 --> 00:27:07,992
- Shrem:
- <i> Things have been insane.</i>
- 592
- 00:27:09,094 --> 00:27:10,728
- <i> ( Mouse clicking )</i>
- 593
- 00:27:10,730 --> 00:27:13,764
- <i> I haven't slept in days.</i>
- 594
- 00:27:13,766 --> 00:27:15,866
- <i> The price is just rising,</i>
- <i> so a lot of people</i>
- 595
- 00:27:15,868 --> 00:27:17,001
- <i> are putting</i>
- <i> money into it.</i>
- 596
- 00:27:18,470 --> 00:27:19,970
- Daniel:
- <i> Normally, Charlie can</i>
- <i> get bitcoins</i>
- 597
- 00:27:19,972 --> 00:27:22,239
- <i> to his customers</i>
- <i> in about an hour.</i>
- 598
- 00:27:22,241 --> 00:27:23,774
- <i> But with the recent flood</i>
- <i> of people</i>
- 599
- 00:27:23,776 --> 00:27:25,442
- <i> trying</i>
- <i> to purchase bitcoins,</i>
- 600
- 00:27:25,444 --> 00:27:28,946
- <i> bitinstant can't fill</i>
- <i> their orders fast enough.</i>
- 601
- 00:27:28,948 --> 00:27:31,749
- When I pulled up our
- customer service interface,
- 602
- 00:27:31,751 --> 00:27:34,418
- <i> we have close</i>
- <i> to 2,000 open tickets.</i>
- 603
- 00:27:34,420 --> 00:27:37,321
- And that's just
- from Saturday to this morning.
- 604
- 00:27:37,323 --> 00:27:38,622
- Nobody was ready
- 605
- 00:27:38,624 --> 00:27:39,757
- for this kind
- of volume,
- 606
- 00:27:39,759 --> 00:27:42,426
- so we're trying
- to catch up
- 607
- 00:27:42,428 --> 00:27:45,396
- with the volume
- and keep everybody happy.
- 608
- 00:27:45,398 --> 00:27:47,464
- Man on phone:
- <i> Can you just sort of</i>
- <i> describe quickly</i>
- 609
- 00:27:47,466 --> 00:27:50,734
- <i> what the last week or so</i>
- <i> has been like for you guys?</i>
- 610
- 00:27:50,736 --> 00:27:53,604
- The last week or so saw
- our support staff
- 611
- 00:27:53,606 --> 00:27:55,639
- go from two people
- to five people.
- 612
- 00:27:55,641 --> 00:27:56,740
- When someone
- offers you
- 613
- 00:27:56,742 --> 00:27:57,941
- a seat
- on the rocket,
- 614
- 00:27:57,943 --> 00:27:59,309
- you don't ask
- where the seat is.
- 615
- 00:27:59,311 --> 00:28:00,978
- You just
- get on the rocket.
- 616
- 00:28:00,980 --> 00:28:04,481
- Further, our volume has
- basically tripled
- 617
- 00:28:04,483 --> 00:28:06,750
- in the past two weeks,
- 618
- 00:28:06,752 --> 00:28:09,219
- <i> going from a few hundred</i>
- <i> transactions a day</i>
- 619
- 00:28:09,221 --> 00:28:12,289
- to now two, three thousand
- transactions a day.
- 620
- 00:28:12,291 --> 00:28:13,791
- - Nick:<i> You just came</i>
- <i> onboard here, right? </i>
- - Yeah, I did.
- 621
- 00:28:13,793 --> 00:28:15,959
- Actually, today is
- kinda my first day.
- 622
- 00:28:15,961 --> 00:28:17,561
- -<i> Oh really? </i>
- - Yeah.
- 623
- 00:28:17,563 --> 00:28:19,430
- <i> How does it feel to be</i>
- <i> a part of all this madness?</i>
- 624
- 00:28:19,432 --> 00:28:21,899
- Um, well, madness, yeah.
- 625
- 00:28:21,901 --> 00:28:23,967
- <i> It's overwhelming.</i>
- 626
- 00:28:23,969 --> 00:28:26,070
- <i> And what do you do</i>
- <i> for bitinstant?</i>
- 627
- 00:28:26,072 --> 00:28:28,038
- I'm the c.F.O.
- ( Chuckles )
- 628
- 00:28:28,040 --> 00:28:30,441
- Man on phone:
- <i> Can you give me</i>
- <i> a daily estimate</i>
- 629
- 00:28:30,443 --> 00:28:32,609
- <i> of how much</i>
- <i> money you're moving</i>
- <i> through your system?</i>
- 630
- 00:28:32,611 --> 00:28:34,712
- Um, it's in the--
- 631
- 00:28:34,714 --> 00:28:37,047
- in the six figures
- every day.
- 632
- 00:28:37,049 --> 00:28:38,515
- <i> All right.</i>
- <i> Well, thanks, Charlie.</i>
- 633
- 00:28:38,517 --> 00:28:40,451
- -<i> I really appreciate it. </i>
- - Thank you.
- 634
- 00:28:40,453 --> 00:28:44,088
- <i> I don't know how</i>
- <i> the government will</i>
- <i> react to bitcoin,</i>
- 635
- 00:28:44,090 --> 00:28:47,291
- <i> but I spend thousands</i>
- <i>of dollars on lawyers every day</i>
- 636
- 00:28:47,293 --> 00:28:49,126
- <i> just to make sure that</i>
- <i> I'm not gonna go to jail.</i>
- 637
- 00:28:51,096 --> 00:28:53,697
- It's super terrifying.
- I mean, I don't wanna
- go to jail.
- 638
- 00:28:53,699 --> 00:28:55,799
- ( Stammers )
- 639
- 00:28:55,801 --> 00:28:57,301
- I don't wanna become
- a martyr either.
- 640
- 00:29:06,277 --> 00:29:09,113
- ( People chattering )
- 641
- 00:29:09,115 --> 00:29:11,248
- Daniel:
- <i> Bitcoin was the talk</i>
- <i> of the town.</i>
- 642
- 00:29:11,250 --> 00:29:13,150
- <i> Charlie was</i>
- <i> in the limelight</i>
- 643
- 00:29:13,152 --> 00:29:15,953
- <i> and could barely keep up</i>
- <i> with media requests.</i>
- 644
- 00:29:15,955 --> 00:29:19,089
- <i> Within hours,</i>
- <i> the price passed $200.</i>
- 645
- 00:29:25,130 --> 00:29:26,563
- Shrem:
- <i> First day of spring,</i>
- 646
- 00:29:26,565 --> 00:29:28,198
- <i> first day</i>
- <i> bitcoin is over 200.</i>
- 647
- 00:29:28,200 --> 00:29:29,633
- <i> The start of a new era.</i>
- 648
- 00:29:29,635 --> 00:29:30,968
- Nick:
- <i> Hi. Nice to meet you.</i>
- 649
- 00:29:30,970 --> 00:29:32,703
- I'm the nice
- warm loving mom
- 650
- 00:29:32,705 --> 00:29:35,072
- that makes him
- live at home.
- 651
- 00:29:35,074 --> 00:29:39,209
- 'Cause we can't--
- we can't part from him yet.
- 652
- 00:29:39,211 --> 00:29:40,778
- ( Laughter )
- 653
- 00:29:40,780 --> 00:29:43,080
- Mother:
- <i> We love him too much.</i>
- 654
- 00:29:43,082 --> 00:29:44,915
- This is where
- it all started
- 655
- 00:29:44,917 --> 00:29:46,150
- and this is where
- it still goes down.
- 656
- 00:29:47,886 --> 00:29:50,420
- I've been collecting money
- from all over the world.
- 657
- 00:29:50,422 --> 00:29:52,556
- And it's just something
- I did way before bitcoin.
- 658
- 00:29:52,558 --> 00:29:54,024
- I've been doing it
- since I was a kid.
- 659
- 00:29:54,026 --> 00:29:55,893
- So it's funny that
- I'm collecting all this...
- 660
- 00:29:55,895 --> 00:29:57,761
- Fiat that's
- not worth anything
- 661
- 00:29:57,763 --> 00:29:59,930
- and then all of a sudden
- I get into this bitcoin thing.
- 662
- 00:30:01,900 --> 00:30:03,934
- <i> I realized</i>
- <i> during high school that</i>
- 663
- 00:30:03,936 --> 00:30:06,203
- <i> I could never work</i>
- <i> for anyone.</i>
- 664
- 00:30:06,205 --> 00:30:07,604
- <i> I made up a term--</i>
- 665
- 00:30:07,606 --> 00:30:09,573
- psychologically unemployable.
- 666
- 00:30:09,575 --> 00:30:11,842
- <i> I started bitinstant</i>
- <i> while I was still</i>
- 667
- 00:30:11,844 --> 00:30:13,844
- <i> in my senior year of college.</i>
- 668
- 00:30:13,846 --> 00:30:18,182
- <i> Bitcoin currently is</i>
- <i> the largest social-</i>
- <i> economic experiment</i>
- 669
- 00:30:18,184 --> 00:30:20,184
- <i> ever conducted</i>
- <i> in the history of the world.</i>
- 670
- 00:30:20,186 --> 00:30:23,287
- <i> 2013, possibly 2014,</i>
- 671
- 00:30:23,289 --> 00:30:25,622
- <i> will be the two years</i>
- <i> that really make </i>
- <i> or break bitcoin.</i>
- 672
- 00:30:27,859 --> 00:30:30,894
- <i> Bitcoin is the first product</i>
- <i> that's digital,</i>
- 673
- 00:30:30,896 --> 00:30:32,262
- <i> but it's also scarce.</i>
- 674
- 00:30:35,466 --> 00:30:38,302
- <i> I got some good news</i>
- <i> last night that</i>
- 675
- 00:30:38,304 --> 00:30:40,571
- <i> part of our licensing deals</i>
- <i> that we've been trying to do</i>
- 676
- 00:30:40,573 --> 00:30:42,039
- <i> for the past</i>
- <i> few months are finally,</i>
- 677
- 00:30:42,041 --> 00:30:43,540
- <i> hopefully,</i>
- <i> coming through.</i>
- 678
- 00:30:43,542 --> 00:30:45,809
- We got approved
- to be licensed
- 679
- 00:30:45,811 --> 00:30:48,345
- in 30 of the 48 states
- in money transmission.
- 680
- 00:30:50,281 --> 00:30:52,449
- I've been working very hard
- on trying to be compliant
- 681
- 00:30:52,451 --> 00:30:53,951
- in the legal realm
- 682
- 00:30:53,953 --> 00:30:56,787
- and with fincen's
- announcement,
- 683
- 00:30:56,789 --> 00:30:59,923
- setting up a way
- for bitcoin companies
- to legally exist,
- 684
- 00:30:59,925 --> 00:31:02,292
- that really changes
- the whole game of bitcoin.
- 685
- 00:31:02,294 --> 00:31:06,230
- And for us,
- it helped us get
- that last push
- 686
- 00:31:06,232 --> 00:31:07,898
- that we needed
- from all the banks
- 687
- 00:31:07,900 --> 00:31:09,867
- and the regulators
- to finally, hopefully,
- 688
- 00:31:09,869 --> 00:31:11,335
- get that licensing
- that we need.
- 689
- 00:31:14,405 --> 00:31:17,040
- Daniel:
- <i> Today, Charlie's meeting</i>
- <i> with a realtor</i>
- 690
- 00:31:17,042 --> 00:31:18,742
- <i> to talk about</i>
- <i> new office space.</i>
- 691
- 00:31:18,744 --> 00:31:20,911
- Hi, Charlie,
- nice to meet you.
- 692
- 00:31:20,913 --> 00:31:22,746
- - Hi, I'm Mitch waldman.
- How are you?
- - A pleasure.
- 693
- 00:31:22,748 --> 00:31:25,249
- - Got a minute?
- - I have 10 minutes for you.
- 694
- 00:31:25,251 --> 00:31:27,918
- We're-- we're a company
- with no boss, essentially.
- 695
- 00:31:27,920 --> 00:31:29,553
- Everyone has
- their responsibilities.
- 696
- 00:31:29,555 --> 00:31:31,388
- It's just
- one big executive board.
- 697
- 00:31:31,390 --> 00:31:32,923
- - It's just one big
- executive board.
- - Okay.
- 698
- 00:31:32,925 --> 00:31:35,859
- If I don't do my job,
- these guys are all
- gonna yell at me.
- 699
- 00:31:35,861 --> 00:31:38,362
- -<i> So that's how we do it,</i>
- <i> but we get things done. </i>
- - Waldman:<i> All right.</i>
- 700
- 00:31:38,364 --> 00:31:40,297
- We're outgrowing this space,
- as you can see here.
- 701
- 00:31:40,299 --> 00:31:42,933
- - That's a good problem to have.
- - Shrem: Yes. ( Sighs )
- 702
- 00:31:42,935 --> 00:31:44,935
- Now Rachel said
- there was a great concern
- 703
- 00:31:44,937 --> 00:31:47,070
- - about security
- in this space.
- - Shrem:<i> Yeah.</i>
- 704
- 00:31:47,072 --> 00:31:49,673
- <i> We're regulated,</i>
- <i> so we can't share an office</i>
- 705
- 00:31:49,675 --> 00:31:51,675
- - with another company
- if they have access to us.
- - I get that.
- 706
- 00:31:51,677 --> 00:31:54,077
- <i> Our asset is our software.</i>
- 707
- 00:31:54,079 --> 00:31:56,847
- Our software is processing
- hundreds of thousands
- of dollars a day
- 708
- 00:31:56,849 --> 00:31:58,448
- instantly.
- Really quickly.
- 709
- 00:31:58,450 --> 00:32:00,684
- And that's on-site here?
- Or is it in the cloud?
- 710
- 00:32:00,686 --> 00:32:02,552
- No, this is in the cloud.
- It's all in the cloud,
- but we monitor--
- 711
- 00:32:02,554 --> 00:32:04,288
- we have to monitor
- everything from here...
- 712
- 00:32:04,290 --> 00:32:06,790
- - Right.
- - ...And debug, fix,
- take down, upload more--
- 713
- 00:32:06,792 --> 00:32:09,760
- - put up more workers.
- - We deal with high-volume
- data-oriented stuff every day.
- 714
- 00:32:09,762 --> 00:32:11,295
- Very very sensitive
- customer data.
- 715
- 00:32:11,297 --> 00:32:13,764
- Waldman:
- <i> If there were not</i>
- <i> a doorman,</i>
- 716
- 00:32:13,766 --> 00:32:16,099
- at the very least
- the space would be
- designed in such a manner
- 717
- 00:32:16,101 --> 00:32:19,036
- that there'd be
- a locked reception area.
- 718
- 00:32:19,038 --> 00:32:21,204
- If we want to pursue
- a guard at some point,
- 719
- 00:32:21,206 --> 00:32:23,874
- we could have them
- in that area.
- 720
- 00:32:23,876 --> 00:32:25,709
- -<i> ( Waldman speaks ) </i>
- - I absolutely think
- 721
- 00:32:25,711 --> 00:32:28,045
- - it will be at some point.
- It's just a matter of time.
- -<i> Really?</i>
- 722
- 00:32:29,280 --> 00:32:30,948
- <i> The potential</i>
- <i> for theft is huge.</i>
- 723
- 00:32:30,950 --> 00:32:33,383
- It's like operating
- a bank, essentially.
- 724
- 00:32:33,385 --> 00:32:34,785
- Shrem:
- <i> That's pretty much it.</i>
- 725
- 00:32:34,787 --> 00:32:36,420
- - Gotcha.
- - It's basic stuff.
- 726
- 00:32:36,422 --> 00:32:38,522
- Yup yup. All right.
- 727
- 00:32:38,524 --> 00:32:40,123
- Any other words for me?
- 728
- 00:32:42,694 --> 00:32:44,995
- - Okay.
- - Are you willing
- to handle the task?
- 729
- 00:32:48,032 --> 00:32:49,967
- - Sign me up, captain.
- - ( Laughs )
- 730
- 00:32:52,603 --> 00:32:57,007
- Daniel:
- <i> That night, the price</i>
- <i> got as high as $266.</i>
- 731
- 00:32:57,009 --> 00:32:59,776
- <i> Every major news outlet</i>
- <i> had taken notice.</i>
- 732
- 00:32:59,778 --> 00:33:01,845
- <i> Bitcoin fever was</i>
- <i> at an all-time high.</i>
- 733
- 00:33:01,847 --> 00:33:03,613
- It is getting
- a lot of attention.
- 734
- 00:33:03,615 --> 00:33:05,682
- People are fascinated
- by anything that
- makes new highs
- 735
- 00:33:05,684 --> 00:33:08,085
- every day for weeks on end,
- which bitcoin has done.
- 736
- 00:33:08,087 --> 00:33:09,353
- In terms of the total number
- of the people
- 737
- 00:33:09,355 --> 00:33:11,088
- using the currency,
- I'm not sure,
- 738
- 00:33:11,090 --> 00:33:12,589
- but you can say
- that there's a huge amount
- 739
- 00:33:12,591 --> 00:33:15,492
- of fluctuation
- in the volume of trading.
- 740
- 00:33:15,494 --> 00:33:17,928
- Daniel:
- <i> And then the price crashed.</i>
- 741
- 00:33:23,835 --> 00:33:25,902
- <i> Bitcoin lost more</i>
- <i> than half of its value</i>
- 742
- 00:33:25,904 --> 00:33:27,537
- <i> in six hours.</i>
- 743
- 00:33:27,539 --> 00:33:30,207
- From craze to crash.
- 744
- 00:33:30,209 --> 00:33:33,243
- It's the talk of many people
- in the blogosphere,
- 745
- 00:33:33,245 --> 00:33:36,246
- and it's certainly suffering
- some growing pains.
- 746
- 00:33:36,248 --> 00:33:40,017
- The value of the virtual
- currency bitcoin has plunged.
- 747
- 00:33:40,019 --> 00:33:41,118
- It's been
- a crazy day today.
- 748
- 00:33:41,120 --> 00:33:43,253
- I haven't slept
- in like 40 hours.
- 749
- 00:33:45,857 --> 00:33:48,125
- <i> Your order processed.</i>
- <i> I don't understand</i>
- 750
- 00:33:48,127 --> 00:33:49,526
- <i> why we're still having</i>
- <i> this conversation.</i>
- 751
- 00:33:49,528 --> 00:33:52,062
- <i> We refunded your order.</i>
- <i> We sent you extra bitcoins.</i>
- 752
- 00:33:52,064 --> 00:33:53,397
- Man on phone:
- <i> I don't care, man.</i>
- 753
- 00:33:53,399 --> 00:33:55,565
- <i> When it comes to my money,</i>
- <i> I don't fuck around.</i>
- 754
- 00:33:55,567 --> 00:33:56,900
- Shrem:
- <i> I know, man.</i>
- <i> You need your stuff.</i>
- 755
- 00:33:56,902 --> 00:33:58,635
- <i> I hear ya, I hear ya.</i>
- <i> It processed.</i>
- 756
- 00:33:58,637 --> 00:34:00,203
- <i> Your bitcoins</i>
- <i> are there, man.</i>
- 757
- 00:34:02,440 --> 00:34:04,041
- Nick:
- <i> So, Charlie, what's been</i>
- <i> going on today?</i>
- 758
- 00:34:04,043 --> 00:34:06,410
- -<i> Crazy day, huh? </i>
- - Yeah, mt. Gox--
- 759
- 00:34:06,412 --> 00:34:09,212
- their whole system
- pretty much failed
- 760
- 00:34:09,214 --> 00:34:11,448
- and their whole
- trading engine is broken.
- 761
- 00:34:11,450 --> 00:34:15,619
- Pretty much caused-- almost--
- us to shut down for the day.
- 762
- 00:34:15,621 --> 00:34:17,754
- <i> Further, the bitcoin price</i>
- <i> has just been</i>
- 763
- 00:34:17,756 --> 00:34:19,056
- <i> wildly swinging up and down</i>
- 764
- 00:34:19,058 --> 00:34:21,358
- it was down $100 today.
- 765
- 00:34:21,360 --> 00:34:24,394
- It's gaining back up,
- but mostly because people
- can't buy and sell
- 766
- 00:34:24,396 --> 00:34:26,196
- and they can't withdraw
- and they can't deposit.
- 767
- 00:34:26,198 --> 00:34:28,899
- 'Cause the whole thing
- is just-- it's just a Fritz.
- 768
- 00:34:28,901 --> 00:34:31,201
- So what we're trying
- to do is figure out a way
- 769
- 00:34:31,203 --> 00:34:33,770
- <i> to mitigate orders</i>
- <i> somewhere else for now.</i>
- 770
- 00:34:33,772 --> 00:34:36,106
- Daniel:
- <i> With mt. Gox stuck</i>
- <i> in a nosedive,</i>
- 771
- 00:34:36,108 --> 00:34:39,376
- <i> the ripple effect</i>
- <i> is creating chaos</i>
- <i> in the bitcoin markets.</i>
- 772
- 00:34:39,378 --> 00:34:42,012
- <i> ( Man mutters )</i>
- 773
- 00:34:43,414 --> 00:34:44,848
- Shrem:
- <i> I'm trying to figure out</i>
- 774
- 00:34:44,850 --> 00:34:47,117
- <i> why our orders</i>
- <i> aren't going through.</i>
- 775
- 00:34:47,119 --> 00:34:48,718
- Rachel, am I allowed
- to take another advil
- 776
- 00:34:48,720 --> 00:34:50,554
- if I took one
- an hour ago?
- 777
- 00:34:50,556 --> 00:34:53,623
- They've been having problems
- ordering anything off of gox.
- 778
- 00:34:53,625 --> 00:34:55,859
- Yeah, I'm getting a lot
- of customers emailing,
- 779
- 00:34:55,861 --> 00:34:58,028
- saying "it says 'executed,'
- but it's not showing
- in the blockchain."
- 780
- 00:34:58,030 --> 00:34:59,563
- Shrem:
- <i> Dude, gox suspended trading.</i>
- 781
- 00:34:59,565 --> 00:35:00,831
- - Really?
- - Yeah.
- 782
- 00:35:00,833 --> 00:35:02,732
- "Orders placed
- suspended until 2100."
- 783
- 00:35:02,734 --> 00:35:04,167
- What time--
- what's 2100?
- 784
- 00:35:04,169 --> 00:35:06,503
- What? That's 9:00 P.M.
- oh my God.
- 785
- 00:35:06,505 --> 00:35:08,305
- ( Sighs )
- 786
- 00:35:16,914 --> 00:35:18,915
- <i> ( People chattering )</i>
- 787
- 00:35:20,718 --> 00:35:21,985
- If you bought at 150...
- 788
- 00:35:23,054 --> 00:35:25,288
- And then you're at 260,
- 789
- 00:35:25,290 --> 00:35:28,225
- and then you watch it
- dip down back to 150,
- 790
- 00:35:28,227 --> 00:35:30,227
- do you panic some?
- Yeah, absolutely.
- 791
- 00:35:30,229 --> 00:35:32,095
- I don't know what a bitcoin is.
- I just bought it.
- 792
- 00:35:32,097 --> 00:35:33,897
- ( Exasperated sigh )
- 793
- 00:35:33,899 --> 00:35:35,732
- Fuck.
- 794
- 00:35:35,734 --> 00:35:37,234
- You see buy orders,
- people buying
- 795
- 00:35:37,236 --> 00:35:40,537
- and selling
- at such a wide range.
- 796
- 00:35:40,539 --> 00:35:42,372
- It doesn't make
- any sense.
- 797
- 00:35:42,374 --> 00:35:44,574
- Shrem:
- <i> The a.P.I. Is just</i>
- <i> constantly failing?</i>
- 798
- 00:35:44,576 --> 00:35:46,910
- <i> Is that what's going on?</i>
- <i> Or are we're not getting</i>
- <i> any orders.</i>
- 799
- 00:35:53,551 --> 00:35:55,919
- <i> ( Bird chirping )</i>
- 800
- 00:35:55,921 --> 00:35:58,021
- Daniel:
- <i> Don't care about the price.</i>
- 801
- 00:35:58,023 --> 00:35:59,856
- Speculators can play
- musical chairs
- 802
- 00:35:59,858 --> 00:36:01,558
- all day long
- for all I care.
- 803
- 00:36:01,560 --> 00:36:03,660
- I'm-I'm-- I'm long.
- 804
- 00:36:05,963 --> 00:36:08,932
- <i> I was focused on expanding</i>
- <i> my mining operation.</i>
- 805
- 00:36:10,868 --> 00:36:13,069
- <i> The only people that</i>
- <i> are gonna be shaken out</i>
- 806
- 00:36:13,071 --> 00:36:14,905
- <i> by this drop</i>
- 807
- 00:36:14,907 --> 00:36:17,340
- <i> are people that</i>
- <i> are new to bitcoin.</i>
- 808
- 00:36:17,342 --> 00:36:20,177
- Here's the avalons,
- spinning away,
- 809
- 00:36:20,179 --> 00:36:21,711
- mining away.
- 810
- 00:36:21,713 --> 00:36:23,847
- And if everything
- goes as planned,
- 811
- 00:36:23,849 --> 00:36:25,749
- we'll have 18 more
- of these guys
- 812
- 00:36:25,751 --> 00:36:28,084
- <i> in a couple of weeks.</i>
- 813
- 00:36:28,086 --> 00:36:30,053
- <i> Bitcoin is</i>
- <i> a complicated thing.</i>
- 814
- 00:36:30,055 --> 00:36:31,588
- You have to spend
- some time looking into it
- 815
- 00:36:31,590 --> 00:36:33,557
- and understanding it
- before you really care.
- 816
- 00:36:33,559 --> 00:36:36,092
- Now there's droves
- of people that--
- 817
- 00:36:36,094 --> 00:36:38,028
- you know, are giving it more
- than just that glance,
- 818
- 00:36:38,030 --> 00:36:40,230
- because the price
- has gone so high.
- 819
- 00:36:40,232 --> 00:36:43,066
- And they have
- dollar signs in their eyes
- like Uncle scrooge.
- 820
- 00:36:43,068 --> 00:36:45,335
- <i> It's so much more than that,</i>
- 821
- 00:36:45,337 --> 00:36:47,337
- <i> and I think that's why</i>
- <i> the people who are mining</i>
- 822
- 00:36:47,339 --> 00:36:49,072
- <i> and the people</i>
- <i> who believe in it</i>
- 823
- 00:36:49,074 --> 00:36:50,674
- <i> are just</i>
- <i> kind of holding strong.</i>
- 824
- 00:36:53,878 --> 00:36:56,213
- <i> When trading resumed</i>
- <i> at mt. Gox,</i>
- 825
- 00:36:56,215 --> 00:36:59,416
- <i> the price fell</i>
- <i> even further, to around $70.</i>
- 826
- 00:36:59,418 --> 00:37:01,851
- 71 on b.T.C.-E.
- 827
- 00:37:05,456 --> 00:37:07,357
- Yeah, bitcoin--
- it's volatile.
- 828
- 00:37:07,359 --> 00:37:10,794
- It's gonna be a long time
- until we have stability.
- 829
- 00:37:10,796 --> 00:37:12,062
- That's the nature
- of the beast.
- 830
- 00:37:12,064 --> 00:37:16,199
- Price discovery can be
- violent and volatile.
- 831
- 00:37:16,201 --> 00:37:19,436
- There's gonna be a lot
- of people that come and go,
- 832
- 00:37:19,438 --> 00:37:21,638
- and people
- that scream wolf.
- 833
- 00:37:21,640 --> 00:37:23,406
- <i> But at the end of the day,</i>
- 834
- 00:37:23,408 --> 00:37:26,243
- <i> the only thing</i>
- <i> that really kind of</i>
- <i> stinks right now</i>
- 835
- 00:37:26,245 --> 00:37:28,878
- <i> is that everybody is</i>
- <i> trading on one platform</i>
- 836
- 00:37:28,880 --> 00:37:30,780
- that isn't doing
- the greatest job, so...
- 837
- 00:37:30,782 --> 00:37:34,784
- Over time, hopefully
- we'll see some more
- exchanges pop up
- 838
- 00:37:34,786 --> 00:37:36,419
- and get
- some more options in.
- 839
- 00:37:36,421 --> 00:37:38,288
- People wanna keep
- using bitcoin,
- 840
- 00:37:38,290 --> 00:37:40,590
- I'm sure the infrastructure
- will come.
- 841
- 00:37:49,400 --> 00:37:51,401
- <i> ( Bird chirping )</i>
- 842
- 00:38:01,379 --> 00:38:02,946
- It's just gotten
- ridiculously busy.
- 843
- 00:38:04,515 --> 00:38:06,416
- I get an email
- every two seconds now
- 844
- 00:38:06,418 --> 00:38:09,552
- - and pretty much
- more email than I--
- -<i> ( Lock buzzes )</i>
- 845
- 00:38:09,554 --> 00:38:11,521
- --Than I can keep up with.
- 846
- 00:38:11,523 --> 00:38:14,691
- Daniel:
- <i> Jered kenna is</i>
- <i> the c.E.O. Of tradehill.</i>
- 847
- 00:38:14,693 --> 00:38:16,760
- <i> The first U.S.-based</i>
- <i> bitcoin exchange</i>
- 848
- 00:38:16,762 --> 00:38:18,762
- <i> to compete with mt. Gox.</i>
- 849
- 00:38:18,764 --> 00:38:20,930
- <i> He's also on the list</i>
- <i> of bitcoin millionaires.</i>
- 850
- 00:38:22,433 --> 00:38:24,367
- - ( Barks )
- - This is finnegan right here.
- 851
- 00:38:24,369 --> 00:38:26,369
- Guard dog.
- Hey, finnegan.
- 852
- 00:38:26,371 --> 00:38:28,171
- ( Mimics growl )
- 853
- 00:38:28,173 --> 00:38:30,006
- Daniel:
- <i> Jered runs tradehill</i>
- 854
- 00:38:30,008 --> 00:38:32,042
- <i> out of a 41-bedroom</i>
- <i> residential hotel</i>
- 855
- 00:38:32,044 --> 00:38:34,411
- <i> called 20 mission</i>
- <i> that he also owns.</i>
- 856
- 00:38:34,413 --> 00:38:36,413
- ( Whirring )
- 857
- 00:38:41,419 --> 00:38:44,020
- We mostly rent out rooms
- to tech people,
- startup people.
- 858
- 00:38:44,022 --> 00:38:45,522
- There's a lot
- of bitcoiners.
- 859
- 00:38:45,524 --> 00:38:47,190
- <i> I actually accept rent</i>
- <i> in bitcoin,</i>
- 860
- 00:38:47,192 --> 00:38:49,192
- which is great,
- because we have a lot
- of international people.
- 861
- 00:38:49,194 --> 00:38:52,095
- <i> ( Acoustic guitar playing )</i>
- 862
- 00:38:52,097 --> 00:38:54,931
- - ¶ Bitcoin! ¶
- - ( Laughs )
- 863
- 00:38:56,200 --> 00:38:59,769
- ¶ Came to us
- from the cryptogram ¶
- 864
- 00:38:59,771 --> 00:39:03,340
- ¶ it came out of thin air ¶
- 865
- 00:39:03,342 --> 00:39:06,710
- ¶ it saved us
- from those nasty dollars ¶
- 866
- 00:39:06,712 --> 00:39:08,311
- ¶ and won and yen ¶
- 867
- 00:39:10,281 --> 00:39:12,282
- ¶ bitcoin. ¶
- 868
- 00:39:12,284 --> 00:39:14,384
- - that's all I got.
- I'm done.
- - ( Mutters )
- 869
- 00:39:14,386 --> 00:39:15,919
- ( Laughter )
- 870
- 00:39:17,221 --> 00:39:19,089
- Digital currency
- is gonna happen.
- 871
- 00:39:19,091 --> 00:39:21,558
- I mean, it's--
- it already is
- happening,
- 872
- 00:39:21,560 --> 00:39:24,594
- and it will be
- the future,
- 873
- 00:39:24,596 --> 00:39:26,363
- whether that's now,
- 874
- 00:39:26,365 --> 00:39:28,498
- 10 years from now,
- a hundred years from now.
- 875
- 00:39:28,500 --> 00:39:30,667
- We're going to be using
- digital currencies
- 876
- 00:39:30,669 --> 00:39:32,635
- that don't depend
- on fiat government.
- 877
- 00:39:32,637 --> 00:39:37,006
- Daniel:
- <i> Jered originally launched</i>
- <i> tradehill about two years ago,</i>
- 878
- 00:39:37,008 --> 00:39:38,842
- <i> but ran into problems</i>
- <i> with a payment processor</i>
- 879
- 00:39:38,844 --> 00:39:40,443
- <i> and was forced</i>
- <i> to shut down.</i>
- 880
- 00:39:42,012 --> 00:39:44,047
- <i> Recently</i>
- <i> he met Ryan singer</i>
- 881
- 00:39:44,049 --> 00:39:46,583
- <i> and together they are</i>
- <i> relaunching the exchange.</i>
- 882
- 00:39:46,585 --> 00:39:47,717
- The business
- we're in is
- 883
- 00:39:47,719 --> 00:39:49,185
- helping people
- speculate, right?
- 884
- 00:39:49,187 --> 00:39:50,754
- Markets are
- 885
- 00:39:50,756 --> 00:39:52,422
- price discovery mechanisms.
- 886
- 00:39:52,424 --> 00:39:53,690
- That's what they're for.
- 887
- 00:39:53,692 --> 00:39:55,825
- People--
- they buy, they sell,
- 888
- 00:39:55,827 --> 00:39:57,394
- there's the bid,
- there's the ask
- 889
- 00:39:57,396 --> 00:40:00,363
- and the price moves.
- And when it levels out,
- 890
- 00:40:00,365 --> 00:40:02,265
- then that's what
- the market price is.
- 891
- 00:40:02,267 --> 00:40:04,534
- I can't even count the amount
- of people that have said,
- 892
- 00:40:04,536 --> 00:40:06,069
- "bitcoin's not backed
- by anything.
- 893
- 00:40:06,071 --> 00:40:07,937
- At least dollars
- are backed by gold."
- 894
- 00:40:07,939 --> 00:40:10,240
- <i> I've realized that a lot</i>
- <i> of people believe that.</i>
- 895
- 00:40:11,876 --> 00:40:13,610
- <i> My grandfather,</i>
- <i> he got me into investing</i>
- 896
- 00:40:13,612 --> 00:40:14,944
- <i> when I was a kid.</i>
- <i> I was five years old.</i>
- 897
- 00:40:14,946 --> 00:40:16,780
- <i> I could explain a p/e ratio,</i>
- 898
- 00:40:16,782 --> 00:40:19,115
- <i> and what a bid</i>
- <i> and an ask was,</i>
- 899
- 00:40:19,117 --> 00:40:20,884
- and the difference
- between a limit order
- and a market order
- 900
- 00:40:20,886 --> 00:40:22,285
- and all that stuff,
- so for me,
- 901
- 00:40:22,287 --> 00:40:24,220
- I saw this as a way
- that the average person
- 902
- 00:40:24,222 --> 00:40:25,955
- could actually take control
- of their finances.
- 903
- 00:40:25,957 --> 00:40:28,358
- <i> I just grew up</i>
- <i> pretty nerdy.</i>
- 904
- 00:40:28,360 --> 00:40:31,428
- I don't know.
- Then like at 15 years old,
- 905
- 00:40:31,430 --> 00:40:33,129
- I decided I didn't want
- to be a nerd anymore,
- 906
- 00:40:33,131 --> 00:40:36,366
- which was a mistake...
- 'Cause...
- 907
- 00:40:38,102 --> 00:40:39,669
- 'Cause now I realize
- it's pretty awesome.
- 908
- 00:40:41,472 --> 00:40:44,073
- <i> In 1999</i>
- <i> I joined the marines.</i>
- 909
- 00:40:44,075 --> 00:40:46,443
- <i> I was originally</i>
- <i> with an engineering unit.</i>
- 910
- 00:40:47,845 --> 00:40:49,712
- <i> 2005, I went over</i>
- <i> to Afghanistan.</i>
- 911
- 00:40:49,714 --> 00:40:52,182
- <i> I was mostly working</i>
- <i> with the Afghan national army.</i>
- 912
- 00:40:52,184 --> 00:40:54,317
- <i> It changed me a lot</i>
- <i> as a person.</i>
- 913
- 00:40:56,987 --> 00:40:58,755
- I've always been interested
- in economics
- 914
- 00:40:58,757 --> 00:41:00,924
- and finance and technology
- and cryptography.
- 915
- 00:41:02,159 --> 00:41:03,927
- <i> I was</i>
- <i> in a cryptography forum</i>
- 916
- 00:41:03,929 --> 00:41:06,095
- <i> and somebody I'd never met--</i>
- <i> who was anonymously</i>
- 917
- 00:41:06,097 --> 00:41:07,597
- <i> in this forum</i>
- <i> that I was chatting with--</i>
- 918
- 00:41:07,599 --> 00:41:09,065
- <i> sent me 10,000 bitcoins</i>
- 919
- 00:41:09,067 --> 00:41:11,267
- <i> just as a way to test</i>
- <i> the system out</i>
- 920
- 00:41:11,269 --> 00:41:12,836
- and see how it worked,
- and I got 'em.
- 921
- 00:41:12,838 --> 00:41:14,571
- I'm like, "that's cool,
- but what can I do with them?"
- 922
- 00:41:14,573 --> 00:41:17,040
- And he said,
- "well, nothing yet, but...
- 923
- 00:41:17,042 --> 00:41:19,442
- If people believe
- it has value, it will."
- 924
- 00:41:19,444 --> 00:41:22,412
- <i> At the time, there was really</i>
- <i> only one bitcoin exchange</i>
- 925
- 00:41:22,414 --> 00:41:25,014
- <i> it was mt. Gox.</i>
- <i> I said, "we need</i>
- <i> an alternative.</i>
- 926
- 00:41:25,016 --> 00:41:27,016
- Who cares if the technology
- is decentralized
- 927
- 00:41:27,018 --> 00:41:28,551
- and the method of transfer
- is decentralized
- 928
- 00:41:28,553 --> 00:41:30,186
- and the people are
- decentralized
- 929
- 00:41:30,188 --> 00:41:32,155
- if all the trades are
- in the same location?"
- 930
- 00:41:32,157 --> 00:41:34,657
- <i> I thought that building</i>
- <i> another exchange</i>
- 931
- 00:41:34,659 --> 00:41:36,092
- <i> to give more people</i>
- <i> access to bitcoin</i>
- 932
- 00:41:36,094 --> 00:41:39,028
- <i> would be a key part</i>
- <i> of bitcoin's growth.</i>
- 933
- 00:41:39,030 --> 00:41:42,098
- The day we launched,
- we got a quarter-million
- dollars in from user deposits.
- 934
- 00:41:42,100 --> 00:41:45,368
- And we said,
- "oh shit, this is--
- this is real.
- 935
- 00:41:45,370 --> 00:41:46,569
- Yeah.
- 936
- 00:41:47,605 --> 00:41:49,072
- Hey.
- 937
- 00:41:50,941 --> 00:41:53,009
- We're all fans
- of "the big lebowski,"
- 938
- 00:41:53,011 --> 00:41:55,445
- so we're gonna have
- a "big lebowski" party.
- 939
- 00:41:55,447 --> 00:41:56,980
- Nice!
- 940
- 00:41:58,616 --> 00:42:02,085
- It's a...
- Very exciting day.
- 941
- 00:42:02,087 --> 00:42:05,855
- <i> 30 gallons of white Russian</i>
- <i> and hallway bowling.</i>
- 942
- 00:42:05,857 --> 00:42:09,225
- - ( Man shouts )
- - Yeah!
- 943
- 00:42:09,227 --> 00:42:11,594
- Kenna:
- <i> We work hard,</i>
- <i> but we party hard too.</i>
- 944
- 00:42:11,596 --> 00:42:14,163
- Okay.
- Okay, I'm good.
- 945
- 00:42:14,165 --> 00:42:16,266
- - Woman:<i> All right. </i>
- - I'm good. I'm not dead.
- 946
- 00:42:16,268 --> 00:42:18,234
- <i> - ( Rock music playing )</i>
- <i> - ( People chattering )</i>
- 947
- 00:42:21,872 --> 00:42:23,673
- Yeah, I'm
- the first one
- in the house...
- 948
- 00:42:25,042 --> 00:42:27,844
- That opened
- a tradehill account.
- 949
- 00:42:51,802 --> 00:42:53,403
- Woman:
- <i> What happened?</i>
- 950
- 00:42:55,873 --> 00:42:57,574
- In the same day
- they went down to 90--
- 951
- 00:42:57,576 --> 00:43:00,710
- $65 or something,
- or $90 a bitcoin.
- 952
- 00:43:00,712 --> 00:43:03,947
- I stopped smiling.
- ( Laughs )
- 953
- 00:43:12,356 --> 00:43:15,024
- Kenna:
- <i> Tradehill, round two,</i>
- <i> we optimized for success.</i>
- 954
- 00:43:15,026 --> 00:43:16,993
- <i> We launched expecting</i>
- <i> to have to do</i>
- 955
- 00:43:16,995 --> 00:43:18,795
- hundreds of thousands
- of transactions a second.
- 956
- 00:43:20,397 --> 00:43:22,599
- <i> Right now we've got</i>
- <i> about 15 people</i>
- 957
- 00:43:22,601 --> 00:43:25,535
- <i> in addition to that,</i>
- <i> we've got about eight</i>
- <i> attorneys externally.</i>
- 958
- 00:43:25,537 --> 00:43:27,737
- A lot of people are
- depositing dollars.
- 959
- 00:43:27,739 --> 00:43:29,706
- A lot of people
- are depositing bitcoin.
- We're getting more trading.
- 960
- 00:43:29,708 --> 00:43:31,608
- We're pushing that
- from a business perspective.
- 961
- 00:43:31,610 --> 00:43:33,276
- <i> Also, we're talking to people</i>
- 962
- 00:43:33,278 --> 00:43:35,678
- <i> who want to do more automated</i>
- <i> trading on our platform.</i>
- 963
- 00:43:35,680 --> 00:43:37,747
- Get robots trading
- against each other.
- 964
- 00:43:37,749 --> 00:43:39,082
- We've stress tested this
- 965
- 00:43:39,084 --> 00:43:43,419
- and we can handle about
- 500 times as much volume
- 966
- 00:43:43,421 --> 00:43:45,054
- <i> as mt. Gox was seeing.</i>
- 967
- 00:43:45,056 --> 00:43:46,956
- So we'll see
- what happens here.
- 968
- 00:43:46,958 --> 00:43:49,892
- The interest in us
- is pretty crazy.
- 969
- 00:43:49,894 --> 00:43:52,729
- <i> Just the news</i>
- <i> with bitcoin</i>
- 970
- 00:43:52,731 --> 00:43:55,398
- <i> has really kind</i>
- <i> of validated everything.</i>
- 971
- 00:43:55,400 --> 00:43:57,600
- Now people are like,
- "oh, you're not this
- crazy person
- 972
- 00:43:57,602 --> 00:43:59,736
- talking about some
- digital made-up currency."
- 973
- 00:43:59,738 --> 00:44:02,605
- It's like,
- "oh, I've read about it
- in 'the wall street journal'
- 974
- 00:44:02,607 --> 00:44:04,273
- and 'the New York times.'
- It's real."
- 975
- 00:44:04,275 --> 00:44:06,409
- Kenna:
- <i> We had an investor come in</i>
- 976
- 00:44:06,411 --> 00:44:08,311
- <i> and he said,</i>
- <i> "hey, I really appreciate</i>
- 977
- 00:44:08,313 --> 00:44:10,647
- <i> your scrappy nature</i>
- <i> and how you're hustling,</i>
- 978
- 00:44:10,649 --> 00:44:13,383
- but I think it's time
- for you guys to spend
- 30 grand a month on rent.
- 979
- 00:44:13,385 --> 00:44:15,985
- When you have
- a billionaire client
- 980
- 00:44:15,987 --> 00:44:17,387
- and they want to come
- check out your office
- 981
- 00:44:17,389 --> 00:44:19,589
- before they send you
- a multi-million dollar wire,
- 982
- 00:44:19,591 --> 00:44:21,691
- asking them
- to walk past pawn shops
- 983
- 00:44:21,693 --> 00:44:23,660
- - is not always the right feel.
- -<i> ( Laughter )</i>
- 984
- 00:44:27,731 --> 00:44:30,667
- So we're leaving
- the mission. We're driving
- into soma right now.
- 985
- 00:44:30,669 --> 00:44:34,504
- We're gonna go
- take a look at what
- may be our new office space
- 986
- 00:44:34,506 --> 00:44:36,906
- pretty prestigious address--
- one market.
- 987
- 00:44:42,680 --> 00:44:45,248
- <i> Right now we're trying</i>
- <i> to forge this path,</i>
- 988
- 00:44:45,250 --> 00:44:47,417
- <i> and we're trying to comply</i>
- <i> with existing laws</i>
- 989
- 00:44:47,419 --> 00:44:49,018
- <i> and anticipate</i>
- <i> future laws,</i>
- 990
- 00:44:49,020 --> 00:44:52,255
- <i> which is extremely expensive</i>
- <i> and extremely difficult.</i>
- 991
- 00:44:52,257 --> 00:44:53,690
- - Is there parking here?
- - Man:<i> Yes.</i>
- 992
- 00:44:53,692 --> 00:44:55,224
- Okay, is that
- included with--
- 993
- 00:44:55,226 --> 00:44:57,160
- ( chuckles )
- Of course.
- 994
- 00:44:57,162 --> 00:44:59,562
- - Right, what does that--
- how much does--
- - ( Laughs )
- 995
- 00:44:59,564 --> 00:45:00,596
- How much does that cost?
- 996
- 00:45:03,534 --> 00:45:04,333
- That's not terrible.
- 997
- 00:45:05,903 --> 00:45:07,437
- Whoa.
- 998
- 00:45:07,439 --> 00:45:09,338
- That's pretty sexy.
- 999
- 00:45:12,009 --> 00:45:13,676
- Twitter was here
- for over a year.
- 1000
- 00:45:13,678 --> 00:45:16,145
- - Yeah.
- - Amazon comes and go
- every single year.
- 1001
- 00:45:16,147 --> 00:45:18,381
- - Oh, fantastic.
- - I have Macy's, I have
- j.C. Penney.
- 1002
- 00:45:18,383 --> 00:45:20,349
- All the big ones,
- they come over.
- 1003
- 00:45:20,351 --> 00:45:21,084
- They are part
- of the club.
- 1004
- 00:45:26,490 --> 00:45:28,224
- Kenna:
- Sounds good.
- We'll be here tomorrow.
- 1005
- 00:45:28,226 --> 00:45:29,325
- - Picking it up.
- - Thank you for the business.
- 1006
- 00:45:29,327 --> 00:45:30,259
- - Thank you.
- - I appreciate it.
- 1007
- 00:45:30,261 --> 00:45:32,161
- Thanks so much.
- 1008
- 00:45:32,163 --> 00:45:33,830
- - We move in tomorrow.
- - Nick:<i> Just like--</i>
- 1009
- 00:45:33,832 --> 00:45:35,398
- -<i> just like that, huh? </i>
- - Just like that.
- 1010
- 00:45:35,400 --> 00:45:36,933
- - That's how we roll.
- - Nick:<i> It's pretty surprising</i>
- 1011
- 00:45:36,935 --> 00:45:38,234
- <i> that that deal</i>
- <i> just happened so quickly.</i>
- 1012
- 00:45:38,236 --> 00:45:39,836
- <i> What was it?</i>
- <i> You just liked the space</i>
- 1013
- 00:45:39,838 --> 00:45:40,970
- <i> and decided, "hey,</i>
- <i> there's no point in waiting"?</i>
- 1014
- 00:45:40,972 --> 00:45:43,039
- We like the space,
- we like the address.
- 1015
- 00:45:43,041 --> 00:45:44,741
- We just don't have
- the time to spend either.
- 1016
- 00:45:44,743 --> 00:45:46,342
- We've got all kinds
- of important stuff
- we're working on
- 1017
- 00:45:46,344 --> 00:45:49,011
- and if we spend a week
- trying to find an office,
- 1018
- 00:45:49,013 --> 00:45:50,780
- and he and I put
- 20 hours into it
- 1019
- 00:45:50,782 --> 00:45:53,049
- or 50 hours into it,
- it's a huge waste of time.
- 1020
- 00:46:11,869 --> 00:46:14,670
- I thought they'd be
- in multiple bags
- 1021
- 00:46:14,672 --> 00:46:16,739
- rather than one big one,
- but hey...
- 1022
- 00:46:22,479 --> 00:46:26,015
- <i> I believe that bitcoin</i>
- <i>will do to the banking industry</i>
- 1023
- 00:46:26,017 --> 00:46:27,650
- what email did
- to the postal service.
- 1024
- 00:46:28,685 --> 00:46:30,253
- <i> It didn't make it irrelevant,</i>
- 1025
- 00:46:30,255 --> 00:46:32,889
- <i> what it's forced</i>
- <i> the post office to do</i>
- 1026
- 00:46:32,891 --> 00:46:34,757
- <i> is concentrate</i>
- <i> on their strengths</i>
- 1027
- 00:46:34,759 --> 00:46:37,593
- and less so
- on their weaknesses.
- 1028
- 00:46:37,595 --> 00:46:39,662
- Daniel:
- <i> Mike Caldwell is the creator</i>
- 1029
- 00:46:39,664 --> 00:46:40,730
- <i> of physical bitcoins,</i>
- 1030
- 00:46:40,732 --> 00:46:42,732
- <i> known as casascius coins.</i>
- 1031
- 00:46:42,734 --> 00:46:44,267
- <i> They're often featured</i>
- 1032
- 00:46:44,269 --> 00:46:46,602
- <i> in mainstream media</i>
- <i> coverage of bitcoin.</i>
- 1033
- 00:46:46,604 --> 00:46:48,404
- <i> They're a novelty item,</i>
- 1034
- 00:46:48,406 --> 00:46:50,106
- <i> collectables</i>
- <i> that basically act</i>
- 1035
- 00:46:50,108 --> 00:46:52,608
- <i> as physical carriers</i>
- <i> for bitcoins.</i>
- 1036
- 00:46:52,610 --> 00:46:54,577
- <i> But they do something</i>
- <i> very important.</i>
- 1037
- 00:46:54,579 --> 00:46:57,413
- <i> They give bitcoin a face.</i>
- 1038
- 00:46:57,415 --> 00:46:59,115
- Come on in.
- 1039
- 00:47:01,752 --> 00:47:03,186
- Sorry, the kids
- are sleeping,
- 1040
- 00:47:03,188 --> 00:47:06,122
- so I'm just being quiet
- so we don't-- you know.
- 1041
- 00:47:06,124 --> 00:47:09,158
- Daniel:
- <i> Each coin has</i>
- <i> its own bitcoin address.</i>
- 1042
- 00:47:09,160 --> 00:47:11,060
- <i> And the private key</i>
- <i> required to spend it</i>
- 1043
- 00:47:11,062 --> 00:47:13,229
- <i> is hidden</i>
- <i> underneath the hologram.</i>
- 1044
- 00:47:13,231 --> 00:47:15,398
- This is where you make
- the physical bitcoin.
- 1045
- 00:47:15,400 --> 00:47:18,067
- Yeah. It's a random
- smattering of things,
- 1046
- 00:47:18,069 --> 00:47:20,236
- but I'm pretty careful
- about the way I manage--
- 1047
- 00:47:20,238 --> 00:47:21,404
- you know, the--
- 1048
- 00:47:21,406 --> 00:47:23,406
- basically,
- this is the credentials.
- 1049
- 00:47:23,408 --> 00:47:26,342
- This is the hologram
- and the private keys.
- 1050
- 00:47:26,344 --> 00:47:28,511
- I'm pretty careful
- about those and don't
- keep them here.
- 1051
- 00:47:28,513 --> 00:47:30,546
- I normally do them
- on this mirror
- 1052
- 00:47:30,548 --> 00:47:34,183
- 'cause that helps me get
- the fronts and backs right.
- 1053
- 00:47:34,185 --> 00:47:37,553
- <i> There's so many things</i>
- <i> that cryptography</i>
- <i> can do for us,</i>
- 1054
- 00:47:37,555 --> 00:47:39,722
- that if the world
- just knew,
- 1055
- 00:47:39,724 --> 00:47:42,592
- <i> so many social problems</i>
- <i> could be solved.</i>
- 1056
- 00:47:42,594 --> 00:47:46,963
- Cryptography can bring
- fairness to elections.
- 1057
- 00:47:46,965 --> 00:47:49,966
- <i> It's too difficult</i>
- <i> for people to understand</i>
- 1058
- 00:47:49,968 --> 00:47:53,069
- <i> and someone needs</i>
- <i> to bridge the gap.</i>
- 1059
- 00:47:53,071 --> 00:47:56,339
- Daniel:
- <i> Right now we're using</i>
- <i> bitcoin to send money.</i>
- 1060
- 00:47:56,341 --> 00:47:59,175
- <i> But many believe it will</i>
- <i> revolutionize much more.</i>
- 1061
- 00:47:59,177 --> 00:48:02,011
- <i> The technology</i>
- <i> behind bitcoin</i>
- 1062
- 00:48:02,013 --> 00:48:04,513
- <i> can be used to build</i>
- <i> decentralized systems</i>
- 1063
- 00:48:04,515 --> 00:48:06,582
- <i> with rules</i>
- <i> that can't be cheated.</i>
- 1064
- 00:48:13,023 --> 00:48:15,324
- Now see, this is
- my wife and my space.
- 1065
- 00:48:15,326 --> 00:48:16,993
- - This is, you know--
- - awesome.
- 1066
- 00:48:16,995 --> 00:48:18,661
- It is what it is.
- 1067
- 00:48:18,663 --> 00:48:19,896
- <i> The more time goes by,</i>
- 1068
- 00:48:19,898 --> 00:48:21,397
- <i> the more legitimate</i>
- <i> bitcoin gets</i>
- 1069
- 00:48:21,399 --> 00:48:23,666
- <i> and the more proud I am</i>
- <i> to be associated with it.</i>
- 1070
- 00:48:23,668 --> 00:48:25,468
- Now what does
- your wife do?
- 1071
- 00:48:25,470 --> 00:48:27,136
- She does crafts.
- 1072
- 00:48:27,138 --> 00:48:28,671
- She's a lot like me.
- 1073
- 00:48:28,673 --> 00:48:30,306
- We just sit around
- and make things all day.
- 1074
- 00:48:30,308 --> 00:48:32,575
- <i> It's just our obsession.</i>
- 1075
- 00:48:32,577 --> 00:48:35,044
- No, I'm not a drug dealer.
- No, I'm not a criminal.
- 1076
- 00:48:35,046 --> 00:48:36,812
- No, I'm not a terrorist.
- 1077
- 00:48:36,814 --> 00:48:38,180
- <i> I believe</i>
- <i> in the rule of law.</i>
- 1078
- 00:48:38,182 --> 00:48:40,082
- I believe in structure
- that builds society.
- 1079
- 00:48:40,084 --> 00:48:41,384
- I believe in families.
- 1080
- 00:48:41,386 --> 00:48:42,919
- <i> I believe</i>
- <i> in corporations.</i>
- 1081
- 00:48:42,921 --> 00:48:45,655
- <i> I believe in all</i>
- <i> the essential elements</i>
- 1082
- 00:48:45,657 --> 00:48:48,691
- that a civilized society
- with law and order
- 1083
- 00:48:48,693 --> 00:48:50,426
- need to be able
- to function.
- 1084
- 00:48:50,428 --> 00:48:52,528
- Focal length matters.
- 1085
- 00:48:52,530 --> 00:48:54,563
- ( Whirring )
- 1086
- 00:48:54,565 --> 00:48:57,500
- Cryptography is the basis
- 1087
- 00:48:57,502 --> 00:49:00,136
- for us being able
- to implement the values
- we say we believe in.
- 1088
- 00:49:03,974 --> 00:49:05,675
- Caldwell:
- <i> This idea will never die,</i>
- 1089
- 00:49:05,677 --> 00:49:09,712
- <i> the technology that bitcoin</i>
- <i> brought to the forefront.</i>
- 1090
- 00:49:09,714 --> 00:49:11,013
- The genie is
- out of the bottle.
- 1091
- 00:49:22,693 --> 00:49:24,660
- Daniel:
- <i> Since the crash,</i>
- <i> the bitcoin price</i>
- 1092
- 00:49:24,662 --> 00:49:26,762
- <i> has been hovering</i>
- <i> around $100.</i>
- 1093
- 00:49:28,165 --> 00:49:30,466
- <i> Bitcoins seem to have</i>
- <i> weathered the storm,</i>
- 1094
- 00:49:30,468 --> 00:49:33,803
- <i> but there's still</i>
- <i> much controversy </i>
- <i> surrounding the currency.</i>
- 1095
- 00:49:33,805 --> 00:49:36,906
- <i> The same cryptography that</i>
- <i> insures a user's privacy</i>
- 1096
- 00:49:36,908 --> 00:49:39,642
- <i> also allows it</i>
- <i> to be used anonymously.</i>
- 1097
- 00:49:48,819 --> 00:49:51,153
- Steve:
- <i> My father decided to retire</i>
- 1098
- 00:49:51,155 --> 00:49:53,255
- <i> and he had an old</i>
- <i> failing print shop.</i>
- 1099
- 00:49:53,257 --> 00:49:54,924
- <i> I basically took it over</i>
- 1100
- 00:49:54,926 --> 00:49:56,425
- <i> and I converted it</i>
- <i> into an Internet place.</i>
- 1101
- 00:49:58,061 --> 00:49:59,161
- We're the only place
- in L.A.
- 1102
- 00:49:59,163 --> 00:50:00,496
- That supports
- bitcoin right now.
- 1103
- 00:50:07,237 --> 00:50:09,772
- This is
- my linux system here.
- 1104
- 00:50:09,774 --> 00:50:13,342
- It's a system that
- also mines for bitcoins.
- 1105
- 00:50:13,344 --> 00:50:15,611
- <i> Makes about a dollar a day.</i>
- <i> I just do it for fun.</i>
- 1106
- 00:50:17,180 --> 00:50:18,848
- I was really really
- into the Internet,
- 1107
- 00:50:18,850 --> 00:50:22,251
- literally in 1990,
- 1991, 1992,
- 1108
- 00:50:22,253 --> 00:50:24,353
- and I had
- the hardest time describing
- 1109
- 00:50:24,355 --> 00:50:26,522
- what the Internet was
- to people.
- 1110
- 00:50:26,524 --> 00:50:28,824
- <i> I would tell people,</i>
- <i> "well, it's like this</i>
- <i> network of computers.</i>
- 1111
- 00:50:28,826 --> 00:50:31,060
- And the network
- of computers
- 1112
- 00:50:31,062 --> 00:50:32,995
- can talk with other
- networks of computers
- 1113
- 00:50:32,997 --> 00:50:34,997
- and then you could
- exchange information."
- 1114
- 00:50:34,999 --> 00:50:37,333
- And people would have
- no idea what it was.
- 1115
- 00:50:37,335 --> 00:50:40,669
- - ( Beeps )
- -<i> When people ask me</i>
- <i> what bitcoin is</i>
- 1116
- 00:50:40,671 --> 00:50:42,905
- <i> I have the hardest time</i>
- <i> describing what it is.</i>
- 1117
- 00:50:42,907 --> 00:50:46,042
- <i> And I'd surmise it as,</i>
- <i> "it's basically money.</i>
- 1118
- 00:50:46,044 --> 00:50:47,643
- <i> It's basically</i>
- <i> an anonymous PayPal.</i>
- 1119
- 00:50:49,212 --> 00:50:51,347
- <i> It's one of those things</i>
- <i> that you have to use</i>
- 1120
- 00:50:51,349 --> 00:50:52,882
- <i> before you understand.</i>
- 1121
- 00:50:54,384 --> 00:50:56,252
- <i> Politically, I'm not</i>
- <i> a very big fan</i>
- 1122
- 00:50:56,254 --> 00:50:58,788
- <i> of either the banks</i>
- <i> or federal reserve,</i>
- 1123
- 00:50:58,790 --> 00:51:00,990
- and bitcoin allows me
- to get around that.
- 1124
- 00:51:00,992 --> 00:51:04,193
- One of the programs we support
- is a protocol called "Tor."
- 1125
- 00:51:04,195 --> 00:51:07,229
- And basically what Tor does is
- it allows you to communicate
- 1126
- 00:51:07,231 --> 00:51:09,165
- to a website anonymously.
- 1127
- 00:51:09,167 --> 00:51:11,233
- <i> Tor is a program</i>
- <i> that allows you to get on</i>
- <i> the silk road.</i>
- 1128
- 00:51:12,569 --> 00:51:14,070
- And this is silk road.
- 1129
- 00:51:14,072 --> 00:51:17,406
- <i> Basically, any drug</i>
- <i> you want is available.</i>
- 1130
- 00:51:17,408 --> 00:51:19,675
- There's a lot of weed.
- There's a lot of cocaine.
- 1131
- 00:51:19,677 --> 00:51:20,976
- <i> There's a lot of ecstasy.</i>
- 1132
- 00:51:20,978 --> 00:51:22,978
- <i> But there's also</i>
- <i> unusual drugs,</i>
- 1133
- 00:51:22,980 --> 00:51:24,580
- like if you want some sort
- of anabolic steroid,
- 1134
- 00:51:24,582 --> 00:51:26,816
- you can type "steroid."
- 1135
- 00:51:26,818 --> 00:51:28,250
- You'll get
- all the different types
- 1136
- 00:51:28,252 --> 00:51:30,019
- <i> of steroids</i>
- <i> that are available.</i>
- 1137
- 00:51:30,021 --> 00:51:32,321
- Silk road itself is
- not selling the drugs.
- 1138
- 00:51:32,323 --> 00:51:34,090
- <i> This is basically</i>
- <i> a matchmaker</i>
- 1139
- 00:51:34,092 --> 00:51:35,658
- <i> between buyer and seller.</i>
- 1140
- 00:51:35,660 --> 00:51:37,393
- Both the buyer and seller
- don't know each other.
- 1141
- 00:51:37,395 --> 00:51:39,528
- Both the buyer
- and seller are anonymous.
- 1142
- 00:51:39,530 --> 00:51:41,897
- <i> It goes</i>
- <i> on this web of trust.</i>
- 1143
- 00:51:41,899 --> 00:51:44,633
- If you want to, let's say,
- buy this testosterone,
- 1144
- 00:51:44,635 --> 00:51:46,235
- <i> you'd click on this.</i>
- 1145
- 00:51:47,971 --> 00:51:49,905
- He has
- 99.3 positive feedback
- 1146
- 00:51:49,907 --> 00:51:52,408
- from more
- than 300 transactions.
- 1147
- 00:51:52,410 --> 00:51:55,511
- So even though the contracts
- aren't enforceable by law,
- 1148
- 00:51:55,513 --> 00:51:57,680
- the reputation system
- makes it so that
- 1149
- 00:51:57,682 --> 00:52:00,249
- the system works
- pretty well.
- 1150
- 00:52:00,251 --> 00:52:02,318
- Oh, there's
- a fireworks section now.
- I didn't know that.
- 1151
- 00:52:03,720 --> 00:52:07,156
- <i> Florida I.D.,</i>
- <i> 1.88 bitcoins,</i>
- 1152
- 00:52:07,158 --> 00:52:10,559
- which is around $150,
- something like that.
- 1153
- 00:52:10,561 --> 00:52:12,962
- <i> A forged</i>
- <i> auto insurance card,</i>
- 1154
- 00:52:12,964 --> 00:52:15,664
- <i> forged passport.</i>
- 1155
- 00:52:15,666 --> 00:52:17,733
- There is over
- 9,000 entries for drugs.
- 1156
- 00:52:19,469 --> 00:52:20,669
- That's a lot.
- 1157
- 00:52:22,672 --> 00:52:24,273
- I would say there's around
- maybe five customers
- 1158
- 00:52:24,275 --> 00:52:25,875
- that know about it
- and use it.
- 1159
- 00:52:25,877 --> 00:52:27,877
- It's a very small percentage
- of the people that come in.
- 1160
- 00:52:27,879 --> 00:52:29,512
- But the people
- who do know about it,
- 1161
- 00:52:29,514 --> 00:52:31,147
- specifically
- come here to use it.
- 1162
- 00:52:31,149 --> 00:52:34,316
- <i> ( Rock music playing )</i>
- 1163
- 00:52:34,318 --> 00:52:36,152
- <i> What the customers do</i>
- <i> with the computers</i>
- 1164
- 00:52:36,154 --> 00:52:38,554
- <i> is pretty much</i>
- <i> their business.</i>
- 1165
- 00:52:38,556 --> 00:52:40,856
- Another day in the office.
- 1166
- 00:52:40,858 --> 00:52:43,826
- You gonna do
- drug dealing of any sort,
- 1167
- 00:52:43,828 --> 00:52:45,127
- silk road is
- the place to go.
- 1168
- 00:52:45,129 --> 00:52:48,297
- How many people are
- selling cannabis right now?
- 1169
- 00:52:48,299 --> 00:52:51,534
- <i> It looks like 2,011 people</i>
- <i> are selling cannabis.</i>
- 1170
- 00:52:51,536 --> 00:52:53,135
- They call me
- Mr. bitcoin.
- 1171
- 00:52:53,137 --> 00:52:55,004
- <i> I probably been</i>
- <i> dealing drugs</i>
- 1172
- 00:52:55,006 --> 00:52:57,540
- since I was like 17.
- 1173
- 00:52:57,542 --> 00:52:59,909
- <i> Right now I'm 26.</i>
- 1174
- 00:53:01,411 --> 00:53:03,179
- <i> I think of it</i>
- <i> as a global thing</i>
- 1175
- 00:53:03,181 --> 00:53:04,380
- <i> when I'm on the computer.</i>
- 1176
- 00:53:04,382 --> 00:53:06,916
- <i> I'm doing business</i>
- <i> with the world.</i>
- 1177
- 00:53:06,918 --> 00:53:08,517
- Let's see,
- they have blue dream,
- 1178
- 00:53:08,519 --> 00:53:11,353
- sour diesel,
- pineapple thai,
- 1179
- 00:53:11,355 --> 00:53:14,390
- purple kush,
- girl scout cookies.
- Purple pays.
- 1180
- 00:53:14,392 --> 00:53:16,225
- When I first
- heard about it,
- 1181
- 00:53:16,227 --> 00:53:17,893
- I was laughing about it.
- It took me a week
- 1182
- 00:53:17,895 --> 00:53:19,895
- to just even think
- about this for real.
- 1183
- 00:53:19,897 --> 00:53:21,830
- "I can really make money
- off the Internet?
- 1184
- 00:53:21,832 --> 00:53:23,832
- Selling this type
- of stuff on the Internet?
- You sure about that?"
- 1185
- 00:53:26,036 --> 00:53:28,170
- This something I probably
- may buy right here.
- 1186
- 00:53:28,172 --> 00:53:31,307
- <i> They have looks like</i>
- <i> some good kush.</i>
- 1187
- 00:53:31,309 --> 00:53:33,809
- <i> And some of these things</i>
- <i> only take a day to get here</i>
- 1188
- 00:53:33,811 --> 00:53:35,811
- <i> with no harassment</i>
- <i> from nobody</i>
- 1189
- 00:53:35,813 --> 00:53:37,513
- instead of just being
- on the streets.
- 1190
- 00:53:37,515 --> 00:53:39,415
- <i> Once you get the hang of it,</i>
- <i> it's actually kinda fun</i>
- 1191
- 00:53:39,417 --> 00:53:40,950
- <i> just looking through</i>
- <i> different things.</i>
- 1192
- 00:53:42,552 --> 00:53:44,853
- "Mr. bitcoin."
- I'm running with it.
- 1193
- 00:53:44,855 --> 00:53:46,355
- I like the name.
- You know what I mean?
- 1194
- 00:53:46,357 --> 00:53:48,190
- I'm not gonna lie.
- I get Booty off this.
- 1195
- 00:53:48,192 --> 00:53:50,025
- I kinda like talking
- about this stuff with girls.
- 1196
- 00:53:50,027 --> 00:53:52,161
- Girls like that shit hot.
- ( Laughs )
- 1197
- 00:53:52,163 --> 00:53:55,364
- "Oh, you're street, and you got
- a little nerd knowledge?
- 1198
- 00:53:55,366 --> 00:53:56,966
- This is great."
- 1199
- 00:53:58,368 --> 00:54:00,402
- <i> I have a lot of bitcoins</i>
- <i> saved up already.</i>
- 1200
- 00:54:00,404 --> 00:54:02,404
- <i> My business is doing good.</i>
- 1201
- 00:54:02,406 --> 00:54:05,307
- It's a fun way of doing
- hustling these days.
- 1202
- 00:54:05,309 --> 00:54:07,343
- The future brung
- a different way to hustle
- 1203
- 00:54:07,345 --> 00:54:08,811
- and I like it.
- 1204
- 00:54:22,058 --> 00:54:24,026
- Daniel:
- <i> With so many people</i>
- <i> using bitcoin</i>
- 1205
- 00:54:24,028 --> 00:54:25,828
- <i> in so many different ways,</i>
- 1206
- 00:54:25,830 --> 00:54:28,230
- <i> it's becoming apparent</i>
- <i> that it can't be ignored.</i>
- 1207
- 00:54:32,902 --> 00:54:34,403
- - Let me see
- your driver's license.
- - Oh sure.
- 1208
- 00:54:34,405 --> 00:54:37,139
- This stays at the desk
- until you leave the building.
- 1209
- 00:54:37,141 --> 00:54:39,174
- Daniel:
- <i> Today I'm visiting fincen,</i>
- 1210
- 00:54:39,176 --> 00:54:41,377
- <i> a bureau</i>
- <i> of the U.S. department</i>
- <i> of the treasury.</i>
- 1211
- 00:54:41,379 --> 00:54:45,080
- <i> Despite having</i>
- <i> released guidance</i>
- <i> on virtual currencies,</i>
- 1212
- 00:54:45,082 --> 00:54:47,549
- <i> there's still</i>
- <i> a lot of uncertainty</i>
- <i> surrounding their outlook</i>
- 1213
- 00:54:47,551 --> 00:54:49,718
- <i> on the future</i>
- <i> of bitcoin regulation.</i>
- 1214
- 00:54:49,720 --> 00:54:52,321
- Straight ahead
- and in the big
- fishbowl-looking--
- 1215
- 00:54:52,323 --> 00:54:54,356
- <i> okay, great.</i>
- 1216
- 00:54:54,358 --> 00:54:56,992
- <i> ( Beeping )</i>
- 1217
- 00:54:56,994 --> 00:54:58,494
- I'm not gonna say
- we're gonna have
- 1218
- 00:54:58,496 --> 00:54:59,828
- every answer
- for you today,
- 1219
- 00:54:59,830 --> 00:55:02,064
- but I mean...
- 1220
- 00:55:24,220 --> 00:55:26,422
- - ( Snapping fingers )
- - Ashley:<i> Oh yeah.</i>
- 1221
- 00:55:26,424 --> 00:55:27,756
- ( Laughs )
- 1222
- 00:55:30,193 --> 00:55:32,194
- Daniel:
- <i> Jennifer shasky calvery</i>
- <i> came onboard</i>
- 1223
- 00:55:32,196 --> 00:55:34,463
- <i> as fincen's</i>
- <i> director last year.</i>
- 1224
- 00:55:34,465 --> 00:55:36,865
- <i> During her career,</i>
- <i> she spent 15 years</i>
- 1225
- 00:55:36,867 --> 00:55:38,667
- <i> at the department</i>
- <i> of justice</i>
- 1226
- 00:55:38,669 --> 00:55:40,469
- <i> where she specialized</i>
- <i> in fighting money laundering</i>
- 1227
- 00:55:40,471 --> 00:55:42,204
- <i> and organized crime.</i>
- 1228
- 00:55:42,206 --> 00:55:43,672
- Virtual currencies
- have been on my radar
- 1229
- 00:55:43,674 --> 00:55:45,641
- for a while,
- even prior to coming
- 1230
- 00:55:45,643 --> 00:55:48,877
- to this position,
- because of,
- 1231
- 00:55:48,879 --> 00:55:51,313
- unfortunately, the abuse
- of some of them.
- 1232
- 00:55:51,315 --> 00:55:53,048
- Bitcoin,
- on the other hand,
- 1233
- 00:55:53,050 --> 00:55:55,984
- is one that really
- didn't come on my radar
- 1234
- 00:55:55,986 --> 00:55:57,886
- probably until
- I arrived at fincen.
- 1235
- 00:55:57,888 --> 00:55:59,888
- <i> Depending on</i>
- <i> who you speak to,</i>
- 1236
- 00:55:59,890 --> 00:56:01,390
- <i> the issuance</i>
- <i> of our guidance was</i>
- 1237
- 00:56:01,392 --> 00:56:03,892
- either the best thing
- that ever happened to bitcoin
- 1238
- 00:56:03,894 --> 00:56:06,061
- or the worst thing that
- ever happened to bitcoin.
- 1239
- 00:56:06,063 --> 00:56:08,697
- <i> Some accusing us</i>
- <i> of trying to kill bitcoin</i>
- 1240
- 00:56:08,699 --> 00:56:11,667
- <i> and others saying that</i>
- <i> it somehow legitimized it.</i>
- 1241
- 00:56:11,669 --> 00:56:15,337
- Of course, neither
- of those things I think
- is probably true.
- 1242
- 00:56:15,339 --> 00:56:17,706
- And certainly
- neither of those things
- was our intent.
- 1243
- 00:56:17,708 --> 00:56:21,210
- <i> One of the clear lines is</i>
- <i> that if you're a consumer</i>
- 1244
- 00:56:21,212 --> 00:56:24,146
- <i> who's using bitcoins</i>
- <i> to buy goods and services,</i>
- 1245
- 00:56:24,148 --> 00:56:26,081
- <i> the guidance</i>
- <i> doesn't pertain to you.</i>
- 1246
- 00:56:26,083 --> 00:56:29,017
- We're focused more
- on the places where we think
- 1247
- 00:56:29,019 --> 00:56:32,054
- we have risks
- to the U.S. financial system
- 1248
- 00:56:32,056 --> 00:56:33,889
- from money laundering
- and terrorist financing.
- 1249
- 00:56:33,891 --> 00:56:35,991
- And I think
- that might be kind of--
- 1250
- 00:56:35,993 --> 00:56:39,428
- a lot of the bitcoin community
- has a little bit of a fear
- 1251
- 00:56:39,430 --> 00:56:42,464
- that bitcoin
- may be characterized
- 1252
- 00:56:42,466 --> 00:56:46,368
- in a way so as to tie it
- to some bad actor ruining it
- for everyone,
- 1253
- 00:56:46,370 --> 00:56:48,404
- <i> when a lot of people that</i>
- <i> are interested in bitcoin,</i>
- 1254
- 00:56:48,406 --> 00:56:52,107
- including myself, see it
- as just this technology
- that we don't--
- 1255
- 00:56:52,109 --> 00:56:54,143
- really don't wanna
- see it falling
- 1256
- 00:56:54,145 --> 00:56:56,044
- into the wrong
- categorization
- 1257
- 00:56:56,046 --> 00:56:58,280
- with all the potential
- that's there.
- 1258
- 00:56:58,282 --> 00:57:02,484
- Sure. So that innovation
- around bitcoin
- 1259
- 00:57:02,486 --> 00:57:05,154
- and the virtual economy
- 1260
- 00:57:05,156 --> 00:57:08,524
- is really one of the more
- interesting aspects,
- 1261
- 00:57:08,526 --> 00:57:10,859
- I think, of this story--
- the idea that
- 1262
- 00:57:10,861 --> 00:57:14,163
- <i> it can be used</i>
- <i> to potentially serve</i>
- 1263
- 00:57:14,165 --> 00:57:15,964
- <i> the unbanked out there,</i>
- 1264
- 00:57:15,966 --> 00:57:18,567
- <i> just to provide</i>
- <i> some really new services</i>
- 1265
- 00:57:18,569 --> 00:57:20,602
- <i> that are convenient</i>
- <i> for consumers.</i>
- 1266
- 00:57:20,604 --> 00:57:22,004
- The flip side of it
- though
- 1267
- 00:57:22,006 --> 00:57:24,506
- is that to be a part
- of the financial system--
- 1268
- 00:57:24,508 --> 00:57:27,810
- the U.S. financial system,
- the global financial system--
- 1269
- 00:57:27,812 --> 00:57:29,711
- also comes
- with some responsibilities.
- 1270
- 00:57:29,713 --> 00:57:32,347
- And those
- responsibilities include
- 1271
- 00:57:32,349 --> 00:57:35,617
- <i> not allowing</i>
- <i> your institution to be used</i>
- 1272
- 00:57:35,619 --> 00:57:39,621
- by criminals
- and by terrorists.
- 1273
- 00:57:44,627 --> 00:57:46,195
- Daniel:
- <i> There's always</i>
- <i> been a concern</i>
- 1274
- 00:57:46,197 --> 00:57:48,464
- <i> that the government might try</i>
- <i> to stamp out bitcoin.</i>
- 1275
- 00:57:50,400 --> 00:57:53,435
- <i> But perhaps they see the risk</i>
- <i> of being left behind.</i>
- 1276
- 00:57:58,174 --> 00:58:01,276
- <i> In may 2013,</i>
- <i> the biggest gathering to-date</i>
- 1277
- 00:58:01,278 --> 00:58:03,512
- <i> of bitcoin enthusiasts</i>
- <i> and entrepreneurs</i>
- 1278
- 00:58:03,514 --> 00:58:05,781
- <i> happened in San Jose,</i>
- <i> California.</i>
- 1279
- 00:58:05,783 --> 00:58:07,850
- Lindsay Holland:
- <i> We're at bitcoin 2013.</i>
- 1280
- 00:58:07,852 --> 00:58:10,786
- It's the inaugural conference
- of the bitcoin foundation.
- 1281
- 00:58:14,157 --> 00:58:16,825
- Roger ver:
- <i> Bitcoin is worldwide</i>
- <i>and the vast majority of people</i>
- 1282
- 00:58:16,827 --> 00:58:19,194
- haven't even heard
- of bitcoin yet.
- 1283
- 00:58:19,196 --> 00:58:21,830
- It's more powerful
- than every computer
- 1284
- 00:58:21,832 --> 00:58:23,565
- on the top-500 list
- combined.
- 1285
- 00:58:25,668 --> 00:58:27,002
- It's an awfully
- big world,
- 1286
- 00:58:27,004 --> 00:58:29,104
- an awful lot
- of things
- could happen.
- 1287
- 00:58:29,106 --> 00:58:32,040
- <i> Really, we've been</i>
- <i> on a roller-coaster ride</i>
- 1288
- 00:58:32,042 --> 00:58:35,177
- <i> and I expect, at least</i>
- <i> for the next few years,</i>
- 1289
- 00:58:35,179 --> 00:58:37,746
- <i> we're gonna remain</i>
- <i> on a roller-coaster ride.</i>
- 1290
- 00:58:37,748 --> 00:58:40,249
- I happen to enjoy
- roller coasters.
- 1291
- 00:58:40,251 --> 00:58:42,084
- - I think they're fun.
- - ( Applause )
- 1292
- 00:58:43,453 --> 00:58:44,620
- Daniel:
- <i> Just a few weeks earlier</i>
- 1293
- 00:58:44,622 --> 00:58:46,255
- <i> Cameron and Tyler winklevoss,</i>
- 1294
- 00:58:46,257 --> 00:58:48,257
- <i> known for their involvement</i>
- <i> in Facebook,</i>
- 1295
- 00:58:48,259 --> 00:58:50,192
- <i> announce that</i>
- <i> they own a 1% stake</i>
- 1296
- 00:58:50,194 --> 00:58:51,994
- <i> of all bitcoins</i>
- <i> in existence.</i>
- 1297
- 00:58:51,996 --> 00:58:54,096
- <i> Worth around $11 million.</i>
- 1298
- 00:58:54,098 --> 00:58:56,698
- - How's it going? How are you?
- - Nice to meet you.
- 1299
- 00:58:56,700 --> 00:58:59,668
- Daniel:
- <i> They also made</i>
- <i> a $1.5 million investment</i>
- 1300
- 00:58:59,670 --> 00:59:01,837
- <i> in Charlie's company,</i>
- <i> bitinstant.</i>
- 1301
- 00:59:01,839 --> 00:59:04,339
- We started looking
- seriously at it
- 1302
- 00:59:04,341 --> 00:59:05,874
- at the end
- of last summer
- 1303
- 00:59:05,876 --> 00:59:08,510
- and started purchasing
- around that time.
- 1304
- 00:59:08,512 --> 00:59:11,179
- I think a light bulb just
- went off and we said, "wow.
- 1305
- 00:59:11,181 --> 00:59:13,515
- The implication of this
- could be enormous.
- 1306
- 00:59:13,517 --> 00:59:15,651
- Tyler:
- <i> If everyone in the world</i>
- <i> could have a bitcoin address,</i>
- 1307
- 00:59:15,653 --> 00:59:18,620
- everyone in the world
- could be banked
- fairly quickly.
- 1308
- 00:59:18,622 --> 00:59:20,522
- <i> And when you consider that,</i>
- 1309
- 00:59:20,524 --> 00:59:22,357
- it's a very powerful idea.
- 1310
- 00:59:22,359 --> 00:59:25,160
- And bitcoin can
- make that happen.
- 1311
- 00:59:25,162 --> 00:59:26,395
- We're going
- all over the world.
- 1312
- 00:59:26,397 --> 00:59:27,529
- We're going
- to the u.K.
- 1313
- 00:59:27,531 --> 00:59:28,797
- We're going to Australia.
- 1314
- 00:59:28,799 --> 00:59:30,799
- We're going to--
- we're already in Russia.
- 1315
- 00:59:30,801 --> 00:59:32,868
- <i> We're going</i>
- <i> to South America.</i>
- 1316
- 00:59:32,870 --> 00:59:34,403
- We're already
- in Brazil now.
- 1317
- 00:59:34,405 --> 00:59:36,538
- You can buy bitcoin
- at any of our locations.
- 1318
- 00:59:36,540 --> 00:59:39,341
- Daniel:
- <i> It's fun to think that</i>
- <i> satoshi might be here too.</i>
- 1319
- 00:59:39,343 --> 00:59:40,976
- I always wonder
- if somebody is--
- 1320
- 00:59:40,978 --> 00:59:43,345
- if someone here
- somewhere is...
- 1321
- 00:59:43,347 --> 00:59:44,713
- - Yes. I was planning--
- - ...Standing in
- the corner going--
- 1322
- 00:59:52,488 --> 00:59:53,956
- ( both laugh )
- 1323
- 00:59:53,958 --> 00:59:55,157
- What would he do?
- 1324
- 00:59:55,159 --> 00:59:58,493
- What talks would he
- be attending, you know?
- 1325
- 00:59:58,495 --> 01:00:01,163
- Trace Mayer:
- <i> We're seeing the bitcoin</i>
- <i> players in the market</i>
- 1326
- 01:00:01,165 --> 01:00:02,998
- <i> meeting with</i>
- <i> the venture capitalists</i>
- 1327
- 01:00:03,000 --> 01:00:04,700
- <i> and they're all</i>
- <i> beginning to posture</i>
- 1328
- 01:00:04,702 --> 01:00:05,801
- and that's
- very exciting,
- 1329
- 01:00:05,803 --> 01:00:07,169
- because
- it means that
- 1330
- 01:00:07,171 --> 01:00:08,470
- there's gonna be
- a lot more
- 1331
- 01:00:08,472 --> 01:00:09,972
- infrastructure
- built out,
- 1332
- 01:00:09,974 --> 01:00:11,673
- and lot more money
- flowing into the space,
- 1333
- 01:00:11,675 --> 01:00:15,344
- and it's really gonna be
- a big bull market for bitcoin.
- 1334
- 01:00:15,346 --> 01:00:17,679
- Daniel:
- <i> One of the companies</i>
- <i> best known for making</i>
- 1335
- 01:00:17,681 --> 01:00:21,350
- <i>bitcoin accessible for commerce</i>
- <i> is Atlanta-based bitpay.</i>
- 1336
- 01:00:21,352 --> 01:00:23,652
- <i> They are pioneers</i>
- <i> in bitcoin</i>
- 1337
- 01:00:23,654 --> 01:00:25,487
- <i> and provide a service</i>
- <i> that enables merchants</i>
- 1338
- 01:00:25,489 --> 01:00:26,855
- <i> to accept</i>
- <i> bitcoin payments</i>
- 1339
- 01:00:26,857 --> 01:00:29,191
- <i> without dealing</i>
- <i> with its complexities.</i>
- 1340
- 01:00:29,193 --> 01:00:30,993
- We've grown about
- a factor of 10
- 1341
- 01:00:30,995 --> 01:00:33,161
- since the beginning
- of the year.
- 1342
- 01:00:33,163 --> 01:00:34,830
- We were doing about half
- a million dollars a month...
- 1343
- 01:00:34,832 --> 01:00:36,198
- - Yeah.
- - ...Around the turn
- of the year,
- 1344
- 01:00:36,200 --> 01:00:38,000
- and now we're doing
- about $5 million a month.
- 1345
- 01:00:38,002 --> 01:00:41,269
- <i> This is people using bitcoins</i>
- <i>to buy real goods and services.</i>
- 1346
- 01:00:41,271 --> 01:00:42,871
- <i> They're not day trading.</i>
- <i> They're not exchanging.</i>
- 1347
- 01:00:42,873 --> 01:00:44,272
- They're actually
- buying things.
- 1348
- 01:00:44,274 --> 01:00:47,309
- I'm confident that bitcoin is
- the most important invention
- 1349
- 01:00:47,311 --> 01:00:49,044
- in the entire history
- of the world since the Internet.
- 1350
- 01:00:49,046 --> 01:00:50,879
- Daniel:
- <i> Roger ver is an investor</i>
- 1351
- 01:00:50,881 --> 01:00:52,514
- <i> in several</i>
- <i> early bitcoin companies,</i>
- 1352
- 01:00:52,516 --> 01:00:54,216
- <i> including bitpay.</i>
- 1353
- 01:00:54,218 --> 01:00:55,984
- <i> His passion and enthusiasm</i>
- 1354
- 01:00:55,986 --> 01:00:58,687
- <i> has earned him</i>
- <i> the nickname "bitcoin Jesus."</i>
- 1355
- 01:00:58,689 --> 01:01:00,155
- Ver:
- <i> It is going</i>
- <i> to change everything.</i>
- 1356
- 01:01:00,157 --> 01:01:01,490
- And all of you here
- in this room
- 1357
- 01:01:01,492 --> 01:01:03,492
- you're at the very
- very forefront of that.
- 1358
- 01:01:03,494 --> 01:01:06,995
- ( Cheers, applause )
- 1359
- 01:01:06,997 --> 01:01:09,131
- Daniel:
- <i> Roger lives in Tokyo</i>
- 1360
- 01:01:09,133 --> 01:01:12,367
- <i> but travels the earth,</i>
- <i> spreading the good word</i>
- <i> of bitcoin.</i>
- 1361
- 01:01:12,369 --> 01:01:14,369
- Ver:
- <i> The last couple of days</i>
- <i> we've been setting up</i>
- 1362
- 01:01:14,371 --> 01:01:16,705
- <i> a business per day</i>
- <i> to accept bitcoin here</i>
- <i> in the bay area.</i>
- 1363
- 01:01:16,707 --> 01:01:18,006
- <i> Today's business</i>
- <i> is going to be</i>
- 1364
- 01:01:18,008 --> 01:01:20,008
- <i> this super kyo-po</i>
- <i> Korean supermarket.</i>
- 1365
- 01:01:20,010 --> 01:01:23,011
- So for you-- you accept
- credit cards right now?
- 1366
- 01:01:23,013 --> 01:01:25,347
- - Right.
- - The credit card companies
- are charging you 2% or 3%?
- 1367
- 01:01:25,349 --> 01:01:27,382
- - Right.
- - For bitcoin,
- you can do the same thing,
- 1368
- 01:01:27,384 --> 01:01:28,950
- but they'll
- only charge you 1%
- 1369
- 01:01:28,952 --> 01:01:30,886
- and you'll still get dollars
- in your bank account.
- 1370
- 01:01:30,888 --> 01:01:32,387
- If you want,
- you can choose to split
- 1371
- 01:01:32,389 --> 01:01:34,156
- some of the payments
- that you receive
- 1372
- 01:01:34,158 --> 01:01:36,191
- into bitcoins
- and then some into dollars
- 1373
- 01:01:36,193 --> 01:01:38,760
- in whatever ratio you want,
- so you can keep 99% in dollars
- 1374
- 01:01:38,762 --> 01:01:41,930
- and 1% in bitcoin or 99%
- in bitcoin and 1% in dollars.
- 1375
- 01:01:41,932 --> 01:01:43,699
- -<i> Okay. </i>
- - However you want.
- You can decide that.
- 1376
- 01:01:45,201 --> 01:01:46,768
- Daniel:
- <i> Roger is describing</i>
- <i> the service</i>
- 1377
- 01:01:46,770 --> 01:01:48,403
- <i> provided by bitpay.</i>
- 1378
- 01:01:48,405 --> 01:01:50,839
- <i> They take the volatility</i>
- <i> of bitcoin's price</i>
- 1379
- 01:01:50,841 --> 01:01:52,607
- <i> out of the equation</i>
- <i> for merchants</i>
- 1380
- 01:01:52,609 --> 01:01:54,676
- <i> by immediately converting</i>
- <i> bitcoins to dollars</i>
- 1381
- 01:01:54,678 --> 01:01:56,078
- <i> at the time of sale.</i>
- 1382
- 01:01:56,080 --> 01:01:58,113
- So right now we have
- it set to 100% dollars,
- 1383
- 01:01:58,115 --> 01:02:00,248
- so anybody that
- pays here with bitcoin,
- 1384
- 01:02:00,250 --> 01:02:01,850
- they'll deposit the money
- into your bank account
- 1385
- 01:02:01,852 --> 01:02:04,152
- the very next day
- with only a 1% fee.
- 1386
- 01:02:04,154 --> 01:02:05,687
- And I guarantee you
- over the next couple of weeks
- 1387
- 01:02:05,689 --> 01:02:07,022
- you'll have
- lots of computer nerds
- 1388
- 01:02:07,024 --> 01:02:08,990
- that love bitcoins
- will be coming in here
- 1389
- 01:02:08,992 --> 01:02:10,992
- specifically to shop
- at your supermarket,
- 1390
- 01:02:10,994 --> 01:02:12,094
- so that they can pay
- with bitcoin.
- 1391
- 01:02:14,297 --> 01:02:17,199
- The credit card companies,
- just for processing the payment,
- 1392
- 01:02:17,201 --> 01:02:19,534
- they take anywhere from...
- 1393
- 01:02:19,536 --> 01:02:22,637
- 1.5% to over 3%
- 1394
- 01:02:22,639 --> 01:02:24,840
- and then on certain cards
- 1395
- 01:02:24,842 --> 01:02:26,641
- there's even
- a per-transaction fee,
- 1396
- 01:02:26,643 --> 01:02:28,844
- like 20¢ per transaction
- 1397
- 01:02:28,846 --> 01:02:31,012
- plus the percentage
- of the transaction.
- 1398
- 01:02:33,983 --> 01:02:36,017
- ...$11,000, $12,000 a month
- 1399
- 01:02:36,019 --> 01:02:39,454
- on the average
- that they just take
- right out of our account.
- 1400
- 01:02:39,456 --> 01:02:40,622
- I honestly think that
- 1401
- 01:02:40,624 --> 01:02:41,723
- there's a really good chance
- 1402
- 01:02:41,725 --> 01:02:43,458
- that bitcoins will be
- more than $1,000
- 1403
- 01:02:43,460 --> 01:02:45,627
- by the end of the year,
- because everybody who
- hears about--
- 1404
- 01:02:45,629 --> 01:02:47,729
- "wait, I can send money
- to and from anyone I want?"
- 1405
- 01:02:47,731 --> 01:02:50,465
- It's impossible for anyone
- to freeze your account,
- 1406
- 01:02:50,467 --> 01:02:53,568
- it's impossible for anyone
- to block you from sending
- or receiving these bitcoins.
- 1407
- 01:02:53,570 --> 01:02:55,403
- <i> ...Euros,</i>
- <i> so you can see</i>
- 1408
- 01:02:55,405 --> 01:02:57,739
- all these different currency
- exchanges around the world
- 1409
- 01:02:57,741 --> 01:02:59,674
- that exchange
- to and from bitcoins.
- 1410
- 01:02:59,676 --> 01:03:03,178
- You can see there's
- maybe between 50 and 100
- exchanges now.
- 1411
- 01:03:03,180 --> 01:03:05,814
- When I first heard
- about bitcoin and started
- telling everybody about it,
- 1412
- 01:03:05,816 --> 01:03:07,983
- if you looked
- at that same page,
- there were less than 10.
- 1413
- 01:03:07,985 --> 01:03:11,052
- And there's no central
- office that they could raid
- or anything like that?
- 1414
- 01:03:11,054 --> 01:03:12,554
- There's no central--
- it's amazing.
- 1415
- 01:03:12,556 --> 01:03:13,855
- There's no central office,
- 1416
- 01:03:13,857 --> 01:03:15,290
- <i> there's no central place</i>
- <i> they could go to</i>
- 1417
- 01:03:15,292 --> 01:03:17,125
- and say,
- "take Steve's bitcoins,"
- 1418
- 01:03:17,127 --> 01:03:19,127
- or, "give Steve's
- bitcoins to Kevin."
- Do this or do that.
- 1419
- 01:03:19,129 --> 01:03:20,862
- So who's the owner
- of bitcoins?
- 1420
- 01:03:20,864 --> 01:03:23,498
- - Everybody that owns bitcoins?
- - Yeah yeah.
- 1421
- 01:03:23,500 --> 01:03:26,134
- Just like who's
- the owner of gold?
- It's whoever owns some gold.
- 1422
- 01:03:26,136 --> 01:03:28,203
- Short of shutting down
- the entire Internet
- 1423
- 01:03:28,205 --> 01:03:30,338
- in the entire world,
- there's no way to stop bitcoin.
- 1424
- 01:03:36,179 --> 01:03:38,213
- And hit "request payment."
- 1425
- 01:03:38,215 --> 01:03:40,816
- And that's the q.R. Code
- for your bitcoin address.
- 1426
- 01:03:40,818 --> 01:03:42,184
- So I'm gonna scan that...
- 1427
- 01:03:44,253 --> 01:03:46,321
- So now I have your bitcoin
- address on my phone.
- 1428
- 01:03:46,323 --> 01:03:48,290
- I think this is $2,
- 1429
- 01:03:48,292 --> 01:03:50,425
- so I'm going
- to send you $2
- 1430
- 01:03:50,427 --> 01:03:51,993
- worth of bitcoins.
- 1431
- 01:03:56,833 --> 01:03:59,000
- There it is.
- You just received
- that many bitcoins
- 1432
- 01:03:59,002 --> 01:04:00,302
- from me,
- directly with no fee
- 1433
- 01:04:00,304 --> 01:04:02,204
- and if you hit
- the little green square
- 1434
- 01:04:02,206 --> 01:04:04,139
- it'll show you
- the equivalent amount
- in U.S. dollars.
- 1435
- 01:04:04,141 --> 01:04:06,975
- <i> So you just received</i>
- <i> $2 worth of bitcoins</i>
- 1436
- 01:04:06,977 --> 01:04:08,276
- <i> directly from my phone</i>
- <i> to your phone.</i>
- 1437
- 01:04:08,278 --> 01:04:10,312
- And you can send
- money just like that
- anywhere in the world.
- 1438
- 01:04:10,314 --> 01:04:12,480
- You could've told me
- your bitcoin address
- 1439
- 01:04:12,482 --> 01:04:14,349
- by email or posted
- on Facebook
- 1440
- 01:04:14,351 --> 01:04:16,117
- or Twitter or anywhere.
- 1441
- 01:04:16,119 --> 01:04:18,720
- So I could print this
- and have it at the register.
- 1442
- 01:04:18,722 --> 01:04:21,156
- Yeah. Yup, and you can
- check right on your phone
- 1443
- 01:04:21,158 --> 01:04:22,791
- any time that you
- received the payment.
- 1444
- 01:04:22,793 --> 01:04:24,693
- - ( Laughs )
- -<i> Okay. Thank you, Steve.</i>
- 1445
- 01:04:24,695 --> 01:04:25,994
- - Steve:<i> All right. Thanks. </i>
- - Thank you for the tea.
- 1446
- 01:04:25,996 --> 01:04:27,996
- ( Chatting )
- 1447
- 01:04:32,869 --> 01:04:35,303
- Daniel:
- <i> One of the newest standouts</i>
- <i> in the bitcoin space</i>
- 1448
- 01:04:35,305 --> 01:04:38,139
- <i> is a San Francisco company</i>
- <i> named coinbase.</i>
- 1449
- 01:04:38,141 --> 01:04:40,508
- <i> They operate</i>
- <i> a digital wallet service</i>
- 1450
- 01:04:40,510 --> 01:04:44,179
- <i> that makes it simple to buy,</i>
- <i> use and accept bitcoin.</i>
- 1451
- 01:04:44,181 --> 01:04:45,947
- Brian Armstrong:
- <i>I would not be surprised at all</i>
- 1452
- 01:04:45,949 --> 01:04:47,949
- if Google, square, PayPal--
- everybody--
- 1453
- 01:04:47,951 --> 01:04:49,451
- is looking at adding bitcoin
- in one or two years.
- 1454
- 01:04:49,453 --> 01:04:51,953
- <i> By then we need to have</i>
- <i> 50 million wallets.</i>
- 1455
- 01:04:51,955 --> 01:04:53,288
- <i> If we can make this</i>
- <i> easy to use,</i>
- 1456
- 01:04:53,290 --> 01:04:55,357
- <i> it's gonna be huge.</i>
- 1457
- 01:04:55,359 --> 01:04:58,493
- Fred ehrsam:
- <i> My involvement in bitcoin</i>
- <i> is not politically motivated.</i>
- 1458
- 01:04:58,495 --> 01:05:02,764
- - Yeah, dude.
- - Ehrsam:<i> People are realizing</i>
- <i> large capital gains.</i>
- 1459
- 01:05:02,766 --> 01:05:05,467
- When professional
- investors enter the realm,
- 1460
- 01:05:05,469 --> 01:05:07,068
- the stakes
- definitely change.
- 1461
- 01:05:07,070 --> 01:05:09,804
- <i> We raised $5 million</i>
- <i> from union square ventures.</i>
- 1462
- 01:05:09,806 --> 01:05:11,740
- <i> Fred Wilson led</i>
- <i> the round there.</i>
- 1463
- 01:05:11,742 --> 01:05:13,341
- I think bitcoin is still
- 1464
- 01:05:13,343 --> 01:05:15,977
- actually a little bit
- under the radar.
- 1465
- 01:05:15,979 --> 01:05:20,015
- <i> I think it's moved</i>
- <i> past the stage where</i>
- <i> people dismiss it,</i>
- 1466
- 01:05:20,017 --> 01:05:21,816
- <i> but I don't think</i>
- <i> that it's totally</i>
- 1467
- 01:05:21,818 --> 01:05:23,485
- <i> gone mainstream either.</i>
- 1468
- 01:05:23,487 --> 01:05:26,087
- I think we're in that
- middle stage right now.
- 1469
- 01:05:26,089 --> 01:05:28,089
- Daniel:
- <i> At the end of the conference,</i>
- 1470
- 01:05:28,091 --> 01:05:30,125
- <i> jered from tradehill</i>
- <i> threw a party</i>
- 1471
- 01:05:30,127 --> 01:05:32,294
- <i> to celebrate</i>
- <i> how far things had come.</i>
- 1472
- 01:05:32,296 --> 01:05:34,296
- - You guys
- are hot right now.
- - ( Chattering )
- 1473
- 01:05:34,298 --> 01:05:35,931
- - Yup.
- - Congratulations
- on the raise.
- 1474
- 01:05:35,933 --> 01:05:37,499
- - Thank you.
- - It's good money, man.
- 1475
- 01:05:37,501 --> 01:05:39,501
- - Swell do.
- - Yeah.
- 1476
- 01:05:39,503 --> 01:05:43,438
- - I mean--
- - hopefully it's an advancement
- for the community.
- 1477
- 01:05:43,440 --> 01:05:46,341
- I am completely
- pro-compliance.
- 1478
- 01:05:46,343 --> 01:05:48,977
- I think if you don't want
- to attach your identity to this,
- 1479
- 01:05:48,979 --> 01:05:52,147
- - just can't work with you.
- - Yeah, so I thought
- I just need to--
- 1480
- 01:05:52,149 --> 01:05:54,950
- I mean the libertarian side
- of me is like, "ehh.
- Yeah, whatever,"
- 1481
- 01:05:54,952 --> 01:05:57,152
- but like,
- from a business perspective,
- 1482
- 01:05:57,154 --> 01:05:59,554
- if people don't play
- by the rules,
- 1483
- 01:05:59,556 --> 01:06:03,058
- - you're not gonna last.
- - Yeah, I completely agree.
- 1484
- 01:06:03,060 --> 01:06:04,459
- - You're gonna just shut down
- or you're gonna go to jail.
- - Yeah.
- 1485
- 01:06:06,162 --> 01:06:08,196
- Daniel:
- <i> Noticeably absent</i>
- <i> from the conference</i>
- 1486
- 01:06:08,198 --> 01:06:09,798
- <i> were representatives</i>
- <i> of bitcoin's</i>
- 1487
- 01:06:09,800 --> 01:06:12,500
- <i> biggest exchange, mt. Gox.</i>
- 1488
- 01:06:12,502 --> 01:06:15,971
- <i> Just days earlier</i>
- <i> the department of homeland</i>
- <i> security</i>
- 1489
- 01:06:15,973 --> 01:06:18,873
- <i> seized more than $5 million</i>
- <i> from their U.S. accounts.</i>
- 1490
- 01:06:20,376 --> 01:06:22,877
- <i> The seizure warrant stated</i>
- <i> that mt. Gox had failed</i>
- 1491
- 01:06:22,879 --> 01:06:24,779
- <i> to register</i>
- <i> as a money transmitter,</i>
- 1492
- 01:06:24,781 --> 01:06:27,615
- <i> putting them in violation</i>
- <i> of the new fincen guidelines.</i>
- 1493
- 01:06:28,818 --> 01:06:30,685
- ( People chattering )
- 1494
- 01:06:34,090 --> 01:06:37,292
- <i> I'm traveling to Tokyo</i>
- <i> to meet mark karpeles,</i>
- 1495
- 01:06:37,294 --> 01:06:39,227
- <i> mt. Gox's reclusive c.E.O.</i>
- 1496
- 01:06:42,465 --> 01:06:44,165
- No bitcoins on here.
- 1497
- 01:06:45,167 --> 01:06:47,836
- Not yet.
- 1498
- 01:06:47,838 --> 01:06:50,138
- <i> That will make this</i>
- <i> completely unnecessary.</i>
- 1499
- 01:06:50,140 --> 01:06:51,840
- <i> But for now it seems</i>
- <i> kind of primitive</i>
- 1500
- 01:06:51,842 --> 01:06:53,608
- that we're exchanging
- paper for paper.
- 1501
- 01:06:53,610 --> 01:06:54,976
- <i> - ( Clicking )</i>
- <i> - ( Coins clinking )</i>
- 1502
- 01:06:54,978 --> 01:06:58,013
- - Nick:<i> And losing. </i>
- - And losing value.
- 1503
- 01:06:58,015 --> 01:07:00,915
- Someone's taking a cut.
- Someone's taking
- a little percent.
- 1504
- 01:07:00,917 --> 01:07:04,252
- <i> Mark and his</i>
- <i> business partner gonzague</i>
- 1505
- 01:07:04,254 --> 01:07:08,356
- <i> are French but they operate</i>
- <i> mt. Gox from offices in Japan.</i>
- 1506
- 01:07:08,358 --> 01:07:12,327
- <i> Originally mt. Gox was</i>
- <i> an exchange for trading cards</i>
- 1507
- 01:07:12,329 --> 01:07:15,196
- <i> used in a game called</i>
- <i> "magic: The gathering."</i>
- 1508
- 01:07:15,198 --> 01:07:17,699
- <i> M.T.G.O.X. Stood for</i>
- 1509
- 01:07:17,701 --> 01:07:20,602
- <i> "magic: The gathering</i>
- <i> online exchange."</i>
- 1510
- 01:07:20,604 --> 01:07:23,805
- <i> In 2011</i>
- <i> mark's company tibanne</i>
- 1511
- 01:07:23,807 --> 01:07:27,442
- <i> bought mt. Gox,</i>
- <i> and his focus has been</i>
- <i> bitcoin ever since.</i>
- 1512
- 01:07:31,013 --> 01:07:32,981
- <i> One of the conditions</i>
- <i> of my visit</i>
- 1513
- 01:07:32,983 --> 01:07:34,349
- <i> is to refrain</i>
- <i> from any discussion</i>
- 1514
- 01:07:34,351 --> 01:07:35,784
- <i> about the d.H.S. Seizure,</i>
- 1515
- 01:07:35,786 --> 01:07:37,519
- <i> due to the ongoing</i>
- <i> investigation.</i>
- 1516
- 01:07:39,655 --> 01:07:42,357
- <i> We've arrived at mt. Gox.</i>
- 1517
- 01:07:42,359 --> 01:07:44,092
- This is
- mt. Gox right here.
- 1518
- 01:07:44,094 --> 01:07:47,362
- There's no big sign
- or anything, no-- no--
- 1519
- 01:07:47,364 --> 01:07:51,699
- it doesn't look like
- a crazy commercial
- establishment.
- 1520
- 01:07:51,701 --> 01:07:54,169
- <i> Despite</i>
- <i> their legal problems</i>
- 1521
- 01:07:54,171 --> 01:07:57,272
- <i> mt. Gox still</i>
- <i> handles more volume</i>
- <i> than any other exchange</i>
- 1522
- 01:07:57,274 --> 01:07:59,107
- <i> and is processing around</i>
- 1523
- 01:07:59,109 --> 01:08:02,277
- <i> $6 million worth</i>
- <i> of bitcoin trades every day.</i>
- 1524
- 01:08:02,279 --> 01:08:04,846
- We had, last year,
- an average of 10,000
- new customers a month.
- 1525
- 01:08:04,848 --> 01:08:06,748
- January, it was 20,000.
- 1526
- 01:08:06,750 --> 01:08:08,683
- Then 30,000, 60,000,
- 1527
- 01:08:08,685 --> 01:08:10,351
- 150,000.
- 1528
- 01:08:10,353 --> 01:08:13,054
- With what's going on,
- we go down,
- 1529
- 01:08:13,056 --> 01:08:15,890
- but we are reaching
- 100,000 new customers
- 1530
- 01:08:15,892 --> 01:08:17,992
- - for may.
- - That's amazing.
- 1531
- 01:08:17,994 --> 01:08:19,561
- - In a month?
- - In a month.
- 1532
- 01:08:19,563 --> 01:08:20,829
- - Wow.
- - So it was like this...
- 1533
- 01:08:20,831 --> 01:08:21,996
- Zip, bup!
- 1534
- 01:08:21,998 --> 01:08:23,832
- But still,
- after what happened
- 1535
- 01:08:23,834 --> 01:08:25,800
- I thought that a lot
- of people will go away
- 1536
- 01:08:25,802 --> 01:08:28,736
- or don't create
- a new account.
- 1537
- 01:08:28,738 --> 01:08:30,405
- But still,
- 100,000 new customers
- 1538
- 01:08:30,407 --> 01:08:31,806
- it's... wow.
- 1539
- 01:08:31,808 --> 01:08:33,541
- And here we've got
- the office.
- 1540
- 01:08:38,180 --> 01:08:39,914
- <i> ( Laughs )</i>
- 1541
- 01:08:42,585 --> 01:08:45,253
- Daniel:
- <i> Mt. Gox employs 18 people</i>
- 1542
- 01:08:45,255 --> 01:08:47,622
- <i> not only is mark the c.E.O.,</i>
- 1543
- 01:08:47,624 --> 01:08:50,492
- <i> he's also the c.F.O.,</i>
- <i> the lead developer</i>
- 1544
- 01:08:50,494 --> 01:08:54,162
- <i> and performs</i>
- <i> all technical operations</i>
- <i> to keep the exchange running.</i>
- 1545
- 01:08:54,164 --> 01:08:55,330
- <i> ( Daniel speaks )</i>
- 1546
- 01:08:55,332 --> 01:08:56,965
- - C++.
- -<i> C++.</i>
- 1547
- 01:08:56,967 --> 01:08:58,633
- <i> Is that your main--</i>
- <i> is that your main</i>
- 1548
- 01:08:58,635 --> 01:08:59,868
- -<i> programming language? </i>
- - No.
- 1549
- 01:08:59,870 --> 01:09:02,203
- I've got a lot of main
- programming languages.
- 1550
- 01:09:02,205 --> 01:09:03,972
- <i> Yeah? What's your favorite</i>
- <i> programming language?</i>
- 1551
- 01:09:03,974 --> 01:09:05,540
- Really depend
- on what I need to do.
- 1552
- 01:09:05,542 --> 01:09:06,941
- I create a good something
- really quick
- 1553
- 01:09:06,943 --> 01:09:08,810
- and I don't care
- about performance,
- 1554
- 01:09:08,812 --> 01:09:10,011
- I use p.H.P.
- 1555
- 01:09:10,013 --> 01:09:11,846
- If I care a little bit
- about performance,
- 1556
- 01:09:11,848 --> 01:09:14,149
- I will use c++
- with q.T. Available.
- 1557
- 01:09:14,151 --> 01:09:17,085
- And if I care
- a lot about performance,
- I will use axum.
- 1558
- 01:09:21,524 --> 01:09:23,892
- When we go in,
- cameras down first,
- 1559
- 01:09:23,894 --> 01:09:26,060
- - until we get to your servers
- and then back up.
- - Exactly.
- 1560
- 01:09:26,062 --> 01:09:27,562
- Okay.
- 1561
- 01:09:34,103 --> 01:09:37,939
- Getting ready
- to go into the mt. Gox
- data center location.
- 1562
- 01:09:37,941 --> 01:09:39,407
- Okay, cameras down.
- 1563
- 01:09:43,245 --> 01:09:45,513
- <i> We were allowed</i>
- <i> to snap a few photographs</i>
- 1564
- 01:09:47,583 --> 01:09:50,218
- <i> ( karpeles speaking )</i>
- 1565
- 01:10:13,142 --> 01:10:15,310
- ( Speaking Japanese )
- 1566
- 01:10:15,312 --> 01:10:17,045
- <i> ( Man speaking</i>
- <i> Japanese )</i>
- 1567
- 01:10:22,952 --> 01:10:24,485
- Daniel:
- <i>If mt. Gox's new trading engine</i>
- 1568
- 01:10:24,487 --> 01:10:27,689
- <i> can really support</i>
- <i> 100 million orders per second,</i>
- 1569
- 01:10:27,691 --> 01:10:30,758
- <i> it should be able</i>
- <i> to scale with the demands</i>
- <i> of professional traders.</i>
- 1570
- 01:10:30,760 --> 01:10:34,162
- <i> But with complex</i>
- <i> legal problems and</i>
- <i> increasing competition,</i>
- 1571
- 01:10:34,164 --> 01:10:36,364
- <i> mark's attention is pulled</i>
- <i> in many directions.</i>
- 1572
- 01:10:47,176 --> 01:10:49,277
- Do you work seven days
- a week, typically?
- 1573
- 01:10:49,279 --> 01:10:51,946
- - Karpeles: Yup.
- - It seems that you do
- 1574
- 01:10:51,948 --> 01:10:53,848
- the majority
- of all the heavy lifting.
- 1575
- 01:10:53,850 --> 01:10:56,751
- - ( Laughs ) Literally.
- - Karpeles: Yeah.
- 1576
- 01:10:56,753 --> 01:11:00,288
- You need to remove
- your shoes in the entrance.
- 1577
- 01:11:03,292 --> 01:11:05,126
- Daniel:
- <i> Mark is a talented man</i>
- 1578
- 01:11:05,128 --> 01:11:07,428
- <i> in one of the world's</i>
- <i> biggest cities...</i>
- 1579
- 01:11:07,430 --> 01:11:10,498
- <i> But maybe he should stick</i>
- <i> to computer keyboards.</i>
- 1580
- 01:11:11,767 --> 01:11:13,735
- ( Classical music playing )
- 1581
- 01:11:22,478 --> 01:11:24,212
- ( Scoffs )
- Okay, I messed it up.
- 1582
- 01:11:30,719 --> 01:11:32,253
- - ( Chuckles ) Awesome.
- -<i> ( Nick claps ) Yay.</i>
- 1583
- 01:11:32,255 --> 01:11:33,655
- Yeah.
- 1584
- 01:11:49,605 --> 01:11:51,806
- Erik voorhees.
- <i> We are here in northern</i>
- <i> New Hampshire</i>
- 1585
- 01:11:51,808 --> 01:11:53,508
- for the porcupine
- freedom festival.
- 1586
- 01:11:53,510 --> 01:11:55,510
- And this is an event
- put on each year
- 1587
- 01:11:55,512 --> 01:11:56,878
- <i> by the free state project.</i>
- 1588
- 01:11:58,681 --> 01:12:01,816
- <i> Basically it's just a bunch</i>
- <i> of crazy anarcho-capitalists,</i>
- 1589
- 01:12:01,818 --> 01:12:03,751
- <i> libertarian types</i>
- <i> in the woods,</i>
- 1590
- 01:12:03,753 --> 01:12:06,120
- <i> with freedom</i>
- <i> and families.</i>
- 1591
- 01:12:06,122 --> 01:12:08,890
- <i> Pretty much</i>
- <i> all of the vendors</i>
- <i> accept bitcoin.</i>
- 1592
- 01:12:12,161 --> 01:12:14,262
- - ( People chattering )
- - Ahh!
- 1593
- 01:12:14,264 --> 01:12:16,264
- It tastes much better
- when bought with bitcoin.
- 1594
- 01:12:16,266 --> 01:12:17,565
- Thanks, guys.
- 1595
- 01:12:18,934 --> 01:12:21,602
- Soups, salads and smoothies.
- ( Chuckles )
- 1596
- 01:12:21,604 --> 01:12:23,604
- I would say one-third
- of our sales
- 1597
- 01:12:23,606 --> 01:12:25,306
- have been in bitcoin.
- 1598
- 01:12:25,308 --> 01:12:27,375
- It's 20 bucks.
- So you're gonna pay
- in bitcoin?
- 1599
- 01:12:27,377 --> 01:12:30,111
- - Uh, yeah.
- - All right.
- 1600
- 01:12:30,113 --> 01:12:32,213
- <i> Last year was</i>
- <i> our first year accepting it</i>
- 1601
- 01:12:32,215 --> 01:12:35,783
- we did maybe 18 transactions,
- 20 transactions at the most.
- 1602
- 01:12:35,785 --> 01:12:37,785
- And now we're
- up to close to 120.
- 1603
- 01:12:37,787 --> 01:12:40,388
- - ( Sizzling )
- -<i> ( Folk music playing )</i>
- 1604
- 01:12:49,331 --> 01:12:52,333
- Daniel:
- <i> This community is really</i>
- <i> one of the largest groups</i>
- 1605
- 01:12:52,335 --> 01:12:54,135
- <i> of people</i>
- <i> in the U.S., I think,</i>
- 1606
- 01:12:54,137 --> 01:12:56,971
- <i> that is truly adopting bitcoin</i>
- <i> and using it as a currency,</i>
- 1607
- 01:12:56,973 --> 01:12:59,240
- <i> because of what it stands for</i>
- <i>and because of what it enables.</i>
- 1608
- 01:12:59,242 --> 01:13:00,742
- <i> ( People chatter )</i>
- 1609
- 01:13:00,744 --> 01:13:03,144
- The world is
- seriously changing now
- 1610
- 01:13:03,146 --> 01:13:05,747
- and it is changing
- in a very interesting,
- 1611
- 01:13:05,749 --> 01:13:07,949
- <i> very radical,</i>
- <i> decentralized,</i>
- 1612
- 01:13:07,951 --> 01:13:09,384
- and, in my opinion,
- positive direction.
- 1613
- 01:13:10,853 --> 01:13:12,787
- Shoot.
- Here it is.
- 1614
- 01:13:12,789 --> 01:13:14,155
- "Price breaks
- the all-time high."
- 1615
- 01:13:15,858 --> 01:13:17,792
- Daniel:
- <i> Vitalik is only 19 years old,</i>
- 1616
- 01:13:17,794 --> 01:13:19,660
- <i> but he has a profound</i>
- <i> understanding</i>
- 1617
- 01:13:19,662 --> 01:13:21,262
- <i> of the complexities</i>
- <i> of bitcoin</i>
- 1618
- 01:13:21,264 --> 01:13:23,231
- <i> and a gift</i>
- <i> for explaining them.</i>
- 1619
- 01:13:23,233 --> 01:13:26,167
- <i> As lead writer</i>
- <i> for "bitcoin magazine,"</i>
- 1620
- 01:13:26,169 --> 01:13:29,837
- <i> he's been traveling</i>
- <i> the world, covering bitcoin</i>
- <i> for the past year.</i>
- 1621
- 01:13:29,839 --> 01:13:33,608
- I'm a big fan
- of the decentralization
- concept, in principle.
- 1622
- 01:13:33,610 --> 01:13:37,512
- You know, have lots--
- lots of different societies
- 1623
- 01:13:37,514 --> 01:13:41,949
- operating according
- to whatever people's
- own beliefs are.
- 1624
- 01:13:41,951 --> 01:13:44,085
- Bitcoin has unique properties
- 1625
- 01:13:44,087 --> 01:13:46,921
- that no other system
- in the world has had before.
- 1626
- 01:13:46,923 --> 01:13:50,691
- It really seems like
- the only practical way forward.
- 1627
- 01:13:50,693 --> 01:13:53,094
- As you move away
- from cash
- 1628
- 01:13:53,096 --> 01:13:55,663
- into your debit cards
- and your credit cards,
- 1629
- 01:13:55,665 --> 01:13:56,631
- you essentially
- are giving up
- 1630
- 01:13:56,633 --> 01:13:58,433
- a certain degree
- of your privacy
- 1631
- 01:13:58,435 --> 01:14:00,067
- without even
- really knowing it.
- 1632
- 01:14:00,069 --> 01:14:01,769
- <i> It's important to understand</i>
- <i> that bitcoin is not</i>
- 1633
- 01:14:01,771 --> 01:14:04,071
- automatically,
- perfectly anonymous.
- 1634
- 01:14:04,073 --> 01:14:07,675
- But what it does is it
- enables you to be anonymous
- if you wish to.
- 1635
- 01:14:07,677 --> 01:14:10,578
- Daniel:
- <i> Erik voorhees is</i>
- <i> the founder and part owner</i>
- 1636
- 01:14:10,580 --> 01:14:12,513
- <i> of a hugely popular</i>
- <i> bitcoin gambling site</i>
- 1637
- 01:14:12,515 --> 01:14:13,981
- <i> called satoshi dice.</i>
- 1638
- 01:14:15,250 --> 01:14:17,485
- <i> Satoshi dice is</i>
- <i> the first of a new breed</i>
- 1639
- 01:14:17,487 --> 01:14:18,853
- <i> of provably fair</i>
- <i> betting games</i>
- 1640
- 01:14:18,855 --> 01:14:20,421
- <i> that use bitcoin.</i>
- 1641
- 01:14:20,423 --> 01:14:22,490
- <i> Since all bets are public,</i>
- 1642
- 01:14:22,492 --> 01:14:25,726
- <i> anyone can verify</i>
- <i> the odds and payouts.</i>
- 1643
- 01:14:25,728 --> 01:14:28,463
- <i> At its peak,</i>
- <i> satoshi dice was responsible</i>
- 1644
- 01:14:28,465 --> 01:14:30,064
- <i> for more bitcoin transactions</i>
- 1645
- 01:14:30,066 --> 01:14:33,501
- <i> than all other uses</i>
- <i> of bitcoin combined.</i>
- 1646
- 01:14:33,503 --> 01:14:36,537
- <i> It played an important role</i>
- <i> in bitcoin's development</i>
- 1647
- 01:14:36,539 --> 01:14:38,372
- <i> as one</i>
- <i> of the first applications</i>
- 1648
- 01:14:38,374 --> 01:14:41,309
- <i> to really test</i>
- <i> what the bitcoin network</i>
- <i> could handle.</i>
- 1649
- 01:14:41,311 --> 01:14:45,313
- <i> Recently Erik moved</i>
- <i> his entire operations</i>
- <i> out of the U.S.</i>
- 1650
- 01:14:45,315 --> 01:14:46,948
- <i> And into Panama.</i>
- 1651
- 01:14:46,950 --> 01:14:49,116
- <i> He started a company</i>
- <i> called coinapult</i>
- 1652
- 01:14:49,118 --> 01:14:52,386
- <i> that lets you send bitcoin</i>
- <i> via s.M.S. And email.</i>
- 1653
- 01:14:52,388 --> 01:14:54,388
- Voorhees:
- I think most people,
- 1654
- 01:14:54,390 --> 01:14:55,990
- at least in America,
- 1655
- 01:14:55,992 --> 01:14:59,327
- believe that when they put
- $1,000 into their bank,
- 1656
- 01:14:59,329 --> 01:15:02,563
- the bank is holding $1,000
- in its vault for them.
- 1657
- 01:15:02,565 --> 01:15:06,000
- And they don't realize
- that 99% of all the dollars
- are digital.
- 1658
- 01:15:06,002 --> 01:15:08,736
- The fact that
- we have these tokens
- called paper cash
- 1659
- 01:15:08,738 --> 01:15:11,672
- is the exception
- to the rule.
- 1660
- 01:15:11,674 --> 01:15:14,775
- <i> People see the cash</i>
- <i> and they think that</i>
- <i> that's what the money is,</i>
- 1661
- 01:15:14,777 --> 01:15:16,944
- but it's all digital
- and it's been that way
- for decades.
- 1662
- 01:15:16,946 --> 01:15:18,913
- You guys moved
- your business to Panama.
- 1663
- 01:15:18,915 --> 01:15:20,982
- <i> What was the primary driver</i>
- <i> in that?</i>
- 1664
- 01:15:20,984 --> 01:15:22,517
- Voorhees:
- <i> If you're a U.S. company,</i>
- 1665
- 01:15:22,519 --> 01:15:25,686
- you have to follow
- the arcane U.S. regulations
- 1666
- 01:15:25,688 --> 01:15:27,421
- for all of your customers
- around the world.
- 1667
- 01:15:27,423 --> 01:15:29,490
- So if you do business
- with some rural farmer
- in Africa,
- 1668
- 01:15:29,492 --> 01:15:31,626
- you're gonna need to get
- his social security number,
- 1669
- 01:15:31,628 --> 01:15:33,027
- you're gonna need to get
- all this information
- 1670
- 01:15:33,029 --> 01:15:34,762
- that Washington tells you
- is important.
- 1671
- 01:15:34,764 --> 01:15:36,030
- <i> We did not want</i>
- <i> to have to apply</i>
- 1672
- 01:15:36,032 --> 01:15:38,666
- <i> the U.S. financial</i>
- <i> regulatory scheme</i>
- 1673
- 01:15:38,668 --> 01:15:41,369
- <i> to customers</i>
- <i> in sub-saharan Africa.</i>
- 1674
- 01:15:41,371 --> 01:15:42,803
- <i> I don't think</i>
- <i> the developed world's</i>
- 1675
- 01:15:42,805 --> 01:15:45,106
- gonna be where bitcoin
- really takes off, long-term,
- 1676
- 01:15:45,108 --> 01:15:47,208
- because our banking system's
- worked decently well.
- 1677
- 01:15:47,210 --> 01:15:48,809
- <i> Many people around the world</i>
- 1678
- 01:15:48,811 --> 01:15:50,611
- <i> don't have any</i>
- <i> bank accounts whatsoever.</i>
- 1679
- 01:15:50,613 --> 01:15:51,979
- Ultimately, those are
- the types of people
- 1680
- 01:15:51,981 --> 01:15:53,814
- who will find
- the most value out of bitcoin.
- 1681
- 01:15:59,187 --> 01:16:01,088
- Daniel:
- <i> One month later</i>
- <i> Erik announced</i>
- 1682
- 01:16:01,090 --> 01:16:03,958
- <i> he had sold satoshi dice</i>
- <i> to an anonymous investor.</i>
- 1683
- 01:16:03,960 --> 01:16:05,593
- <i> The price?</i>
- 1684
- 01:16:05,595 --> 01:16:09,564
- <i> 126,315 bitcoins,</i>
- 1685
- 01:16:09,566 --> 01:16:13,334
- <i> worth around</i>
- <i> $11.5 million.</i>
- 1686
- 01:16:13,336 --> 01:16:16,771
- Most of the new
- offices in this city
- are in this condition,
- 1687
- 01:16:16,773 --> 01:16:18,472
- all still
- what's called "gray."
- 1688
- 01:16:18,474 --> 01:16:20,942
- Not ready, no Internet,
- no electricity-- nothing.
- 1689
- 01:16:20,944 --> 01:16:22,910
- But we actually got one
- that was finished,
- 1690
- 01:16:22,912 --> 01:16:25,880
- <i> so we moved in and we are</i>
- <i> super excited about it.</i>
- 1691
- 01:16:26,949 --> 01:16:29,050
- You can see
- all the skyscrapers
- 1692
- 01:16:29,052 --> 01:16:31,619
- of new banks and everything
- getting built up here.
- 1693
- 01:16:31,621 --> 01:16:34,589
- This is the financial center
- for central America.
- 1694
- 01:16:34,591 --> 01:16:37,959
- So it was fitting
- that we establish
- ourselves here as well.
- 1695
- 01:16:40,262 --> 01:16:41,329
- Still setting up the office.
- 1696
- 01:16:41,331 --> 01:16:43,431
- We've been here
- for two weeks.
- 1697
- 01:16:43,433 --> 01:16:44,832
- We're getting
- walls put in.
- 1698
- 01:16:44,834 --> 01:16:46,567
- We've got furniture.
- 1699
- 01:16:46,569 --> 01:16:48,836
- Voorhees:
- <i> This is the brains</i>
- <i> of the operation.</i>
- 1700
- 01:16:48,838 --> 01:16:51,305
- -<i> This is Mr. ira. </i>
- - Howdy.
- 1701
- 01:16:51,307 --> 01:16:54,241
- He can program anything,
- and you can see all these
- books he's reading.
- 1702
- 01:16:54,243 --> 01:16:57,645
- What have we got here?
- We've got "cryptanalysis."
- 1703
- 01:16:57,647 --> 01:16:59,647
- We've got
- "everyday cryptography,"
- 1704
- 01:16:59,649 --> 01:17:03,351
- "introduction
- to mathematical cryptography."
- 1705
- 01:17:03,353 --> 01:17:05,753
- I read all of these,
- of course, when I was
- much younger,
- 1706
- 01:17:05,755 --> 01:17:07,722
- but ira's trying
- to catch up with me.
- 1707
- 01:17:13,328 --> 01:17:15,329
- <i> The bitcoin phenomenon</i>
- <i> is trying</i>
- 1708
- 01:17:15,331 --> 01:17:17,331
- <i> to take control</i>
- <i> of money away</i>
- 1709
- 01:17:17,333 --> 01:17:19,767
- <i> from the state and return it</i>
- <i> to individuals.</i>
- 1710
- 01:17:19,769 --> 01:17:21,335
- It's trying to separate
- money and state
- 1711
- 01:17:21,337 --> 01:17:23,337
- in the same way
- and for the same reasons
- 1712
- 01:17:23,339 --> 01:17:25,439
- <i> that it was important</i>
- <i> to separate church and state.</i>
- 1713
- 01:17:25,441 --> 01:17:29,076
- <i> There's a wonderful quote</i>
- <i> from one of the rothschilds--</i>
- 1714
- 01:17:29,078 --> 01:17:30,811
- <i> "give me control</i>
- <i> of a nation's money</i>
- 1715
- 01:17:30,813 --> 01:17:32,913
- <i> and I care not</i>
- <i> who makes its laws."</i>
- 1716
- 01:17:32,915 --> 01:17:35,216
- <i> So I'm trying to play</i>
- <i> my part in that narrative.</i>
- 1717
- 01:17:36,785 --> 01:17:38,319
- Daniel:
- <i> Outside of the United States,</i>
- 1718
- 01:17:38,321 --> 01:17:40,287
- <i> billions of people</i>
- <i> don't have access</i>
- 1719
- 01:17:40,289 --> 01:17:42,256
- <i> to basic banking services.</i>
- 1720
- 01:17:42,258 --> 01:17:44,158
- <i> Bitcoin can level</i>
- <i> the playing field</i>
- 1721
- 01:17:44,160 --> 01:17:45,459
- <i> and help bring</i>
- <i> developing nations</i>
- 1722
- 01:17:45,461 --> 01:17:46,861
- <i> into the global economy.</i>
- 1723
- 01:17:50,699 --> 01:17:52,667
- ( Chattering )
- 1724
- 01:17:54,803 --> 01:17:56,270
- Cheers, cheers.
- 1725
- 01:17:59,141 --> 01:18:01,542
- Voorhees:
- <i> Eventually people are</i>
- <i> going to use a currency</i>
- 1726
- 01:18:01,544 --> 01:18:03,310
- <i> that is as free</i>
- <i> as the Internet</i>
- 1727
- 01:18:03,312 --> 01:18:05,813
- <i> because people</i>
- <i> will seek out freedom</i>
- <i> wherever they can.</i>
- 1728
- 01:18:05,815 --> 01:18:07,948
- <i> And just as</i>
- <i> the government can't</i>
- <i> stop the Internet</i>
- 1729
- 01:18:07,950 --> 01:18:11,285
- <i> and the freedom of speech,</i>
- <i> it can't stop bitcoin and</i>
- <i> the freedom of money.</i>
- 1730
- 01:18:11,287 --> 01:18:14,121
- <i> So we're just gonna</i>
- <i> have to see how hard</i>
- <i> they try to do it.</i>
- 1731
- 01:18:14,123 --> 01:18:15,923
- It's scary
- but it's exciting,
- 1732
- 01:18:15,925 --> 01:18:18,659
- because at the other end
- freedom typically wins.
- 1733
- 01:18:18,661 --> 01:18:20,961
- <i> We just have see how long</i>
- <i> it takes to get there.</i>
- 1734
- 01:18:20,963 --> 01:18:22,029
- ( Shouts )
- 1735
- 01:18:40,649 --> 01:18:42,850
- Daniel:
- <i> As summer rolled on,</i>
- 1736
- 01:18:42,852 --> 01:18:45,586
- <i> the bitcoin industry</i>
- <i> continued to flourish.</i>
- 1737
- 01:18:45,588 --> 01:18:46,954
- It's hard to remember
- the days where I was
- 1738
- 01:18:46,956 --> 01:18:48,589
- running this thing
- out of my basement
- 1739
- 01:18:48,591 --> 01:18:49,857
- and with one or two people.
- 1740
- 01:18:49,859 --> 01:18:52,793
- Bitinstant was just
- a domain name.
- 1741
- 01:18:52,795 --> 01:18:54,428
- Daniel:
- <i> Charlie and bitinstant</i>
- 1742
- 01:18:54,430 --> 01:18:56,030
- <i> moved into</i>
- <i> their new offices</i>
- 1743
- 01:18:56,032 --> 01:18:58,265
- I always wonder
- if satoshi knew
- 1744
- 01:18:58,267 --> 01:19:00,634
- that he was gonna build
- something that would foster
- 1745
- 01:19:00,636 --> 01:19:02,803
- companies like this,
- 1746
- 01:19:02,805 --> 01:19:05,573
- <i> where we're actually like</i>
- <i> a company with jobs</i>
- 1747
- 01:19:05,575 --> 01:19:08,476
- based on something
- that someone we don't know
- wrote a paper on.
- 1748
- 01:19:08,478 --> 01:19:10,344
- It's kind of creepy
- if you think about it.
- 1749
- 01:19:10,346 --> 01:19:12,847
- I wonder if he's watching us
- right now or something.
- 1750
- 01:19:14,382 --> 01:19:15,816
- Daniel:
- <i> In San Francisco,</i>
- 1751
- 01:19:15,818 --> 01:19:17,651
- <i> jered and tradehill had moved</i>
- 1752
- 01:19:17,653 --> 01:19:20,121
- <i> into their new space as well.</i>
- 1753
- 01:19:20,123 --> 01:19:22,456
- It sounds funny.
- It's not a $100-million
- market anymore.
- 1754
- 01:19:22,458 --> 01:19:24,058
- It's grown beyond that.
- 1755
- 01:19:24,060 --> 01:19:26,560
- <i> More professional people</i>
- <i> are in the space</i>
- 1756
- 01:19:26,562 --> 01:19:29,163
- and they're expecting
- to deal with other
- professionals.
- 1757
- 01:19:29,165 --> 01:19:31,265
- Daniel:
- <i> But just as things</i>
- <i> were ramping up,</i>
- 1758
- 01:19:31,267 --> 01:19:33,968
- <i> regulators started taking</i>
- <i> a closer look at bitcoin.</i>
- 1759
- 01:19:36,104 --> 01:19:38,773
- Some bad news
- for bitcoin, or is it?
- 1760
- 01:19:38,775 --> 01:19:40,608
- Its days of glory
- could be ending.
- 1761
- 01:19:40,610 --> 01:19:42,042
- At least
- two dozen companies
- 1762
- 01:19:42,044 --> 01:19:43,577
- have been subpoenaed
- by New York's
- 1763
- 01:19:43,579 --> 01:19:45,412
- department of
- financial services.
- 1764
- 01:19:45,414 --> 01:19:46,814
- Can't be a good thing.
- 1765
- 01:19:46,816 --> 01:19:50,251
- Daniel:
- <i> Bitinstant, bitpay, coinbase</i>
- 1766
- 01:19:50,253 --> 01:19:53,921
- <i> and winklevoss capital</i>
- <i> were all issued subpoenas.</i>
- 1767
- 01:19:53,923 --> 01:19:56,157
- We want to make sure that
- as this enterprise grows
- 1768
- 01:19:56,159 --> 01:19:58,125
- and if it does become
- a place where
- 1769
- 01:19:58,127 --> 01:20:00,427
- a lot of people are engaging
- in financial transactions
- 1770
- 01:20:00,429 --> 01:20:03,264
- that we have sufficient
- protections in place.
- 1771
- 01:20:03,266 --> 01:20:05,933
- Daniel:
- <i> With increased pressure</i>
- <i> in banking compliance issues,</i>
- 1772
- 01:20:05,935 --> 01:20:08,736
- <i> bitinstant was forced</i>
- <i> to suspend services.</i>
- 1773
- 01:20:15,744 --> 01:20:17,745
- <i> Jered faced</i>
- <i> similar battles.</i>
- 1774
- 01:20:17,747 --> 01:20:20,080
- <i> Due to a lack</i>
- <i> of regulation,</i>
- 1775
- 01:20:20,082 --> 01:20:23,717
- <i> many banks decided to cut ties</i>
- <i> with bitcoin companies.</i>
- 1776
- 01:20:23,719 --> 01:20:25,653
- <i> Without a U.S. bank account</i>
- 1777
- 01:20:25,655 --> 01:20:27,555
- <i> tradehill can't operate,</i>
- 1778
- 01:20:27,557 --> 01:20:29,156
- <i> and jered was forced</i>
- <i> to pull the plug.</i>
- 1779
- 01:20:34,095 --> 01:20:36,797
- Regulation typically evolves
- 1780
- 01:20:36,799 --> 01:20:38,966
- much more slowly
- than innovation.
- 1781
- 01:20:38,968 --> 01:20:41,101
- And regulations
- cannot keep pace
- 1782
- 01:20:41,103 --> 01:20:42,369
- with the pace
- of innovation.
- 1783
- 01:20:43,772 --> 01:20:45,472
- Singer:
- <i> Explaining bitcoin to a bank</i>
- 1784
- 01:20:45,474 --> 01:20:47,174
- feels like explaining
- Amazon.Com
- 1785
- 01:20:47,176 --> 01:20:49,076
- to Barnes & noble.
- 1786
- 01:20:49,078 --> 01:20:51,212
- Daniel:
- <i> Until lawmakers catch up,</i>
- 1787
- 01:20:51,214 --> 01:20:53,214
- <i> startups like tradehill</i>
- <i> and bitinstant</i>
- 1788
- 01:20:53,216 --> 01:20:54,548
- <i> are left out on a limb.</i>
- 1789
- 01:20:56,384 --> 01:20:59,887
- Banks do not want to bank
- bitcoin companies.
- 1790
- 01:20:59,889 --> 01:21:01,622
- When you have regulation,
- you can comply with it.
- 1791
- 01:21:01,624 --> 01:21:04,525
- When you don't
- have any regulation,
- they're not exactly sure.
- 1792
- 01:21:04,527 --> 01:21:07,561
- And if the banks aren't sure,
- they just default to "no."
- 1793
- 01:21:07,563 --> 01:21:11,365
- New regulation takes
- at least one year to develop
- 1794
- 01:21:11,367 --> 01:21:13,234
- propose and adopt.
- 1795
- 01:21:13,236 --> 01:21:14,635
- And in many cases,
- 1796
- 01:21:14,637 --> 01:21:16,103
- it can take
- much longer than that.
- 1797
- 01:21:18,740 --> 01:21:20,741
- Shrem:
- <i> I won't let this go.</i>
- 1798
- 01:21:20,743 --> 01:21:23,210
- <i> I will fight till the end</i>
- <i> for bitcoin.</i>
- 1799
- 01:21:23,212 --> 01:21:25,546
- Whether I have
- to work on the street
- or sell lemonade,
- 1800
- 01:21:25,548 --> 01:21:27,281
- bitcoin's gonna succeed
- one way or another
- 1801
- 01:21:27,283 --> 01:21:28,215
- and I'm gonna be
- a part of it.
- 1802
- 01:21:35,223 --> 01:21:37,091
- Daniel:
- <i> Over the past several months</i>
- 1803
- 01:21:37,093 --> 01:21:40,060
- <i> the bitcoin mining landscape</i>
- <i> has changed significantly</i>
- 1804
- 01:21:40,062 --> 01:21:41,629
- <i> ( machines humming )</i>
- 1805
- 01:21:41,631 --> 01:21:43,864
- ( Whirs )
- 1806
- 01:21:46,601 --> 01:21:48,168
- Daniel:
- <i> When I started,</i>
- 1807
- 01:21:48,170 --> 01:21:50,271
- <i> bitcoin mining was</i>
- <i> a hobby for geeks.</i>
- 1808
- 01:21:50,273 --> 01:21:52,339
- <i> Now it's big business.</i>
- 1809
- 01:21:52,341 --> 01:21:54,308
- <i> In order to continue mining</i>
- 1810
- 01:21:54,310 --> 01:21:55,843
- and continue playing
- in the game
- 1811
- 01:21:55,845 --> 01:21:57,244
- and be competitive
- and be profitable,
- 1812
- 01:21:57,246 --> 01:21:58,913
- <i> I would have to spend</i>
- 1813
- 01:21:58,915 --> 01:22:00,681
- <i> hundreds of thousands</i>
- <i> of dollars on gear.</i>
- 1814
- 01:22:02,284 --> 01:22:04,251
- <i> The 18 miners</i>
- <i> I ordered from avalon</i>
- 1815
- 01:22:04,253 --> 01:22:06,020
- <i> never arrived.</i>
- 1816
- 01:22:06,022 --> 01:22:08,155
- <i> And the units</i>
- <i> from butterfly labs</i>
- 1817
- 01:22:08,157 --> 01:22:10,190
- <i> took over a year to ship.</i>
- 1818
- 01:22:10,192 --> 01:22:12,326
- <i> By the time I got them,</i>
- 1819
- 01:22:12,328 --> 01:22:14,428
- <i> bitcoin mining was</i>
- <i> so competitive,</i>
- 1820
- 01:22:14,430 --> 01:22:15,930
- <i> that I would never</i>
- <i> be able to mine back</i>
- 1821
- 01:22:15,932 --> 01:22:18,465
- <i> all the coins</i>
- <i> I used to buy them.</i>
- 1822
- 01:22:18,467 --> 01:22:20,768
- See that computer?
- That computer makes bitcoins.
- 1823
- 01:22:20,770 --> 01:22:24,538
- And this is all
- the other computers that
- are making bitcoins too,
- 1824
- 01:22:24,540 --> 01:22:27,741
- <i> and it goes straight up</i>
- <i> in a line up in the air.</i>
- 1825
- 01:22:27,743 --> 01:22:29,076
- And that's 'cause
- there's a lot people
- 1826
- 01:22:29,078 --> 01:22:31,979
- that are making bitcoins
- with computers like that.
- 1827
- 01:22:31,981 --> 01:22:33,948
- <i> As my new units</i>
- <i> are arriving,</i>
- 1828
- 01:22:33,950 --> 01:22:35,549
- <i> I'm selling them</i>
- <i> for bitcoins</i>
- 1829
- 01:22:35,551 --> 01:22:36,984
- <i> to try to recoup</i>
- <i> what I can.</i>
- 1830
- 01:22:36,986 --> 01:22:38,752
- If you don't mind grabbing
- those other cables,
- 1831
- 01:22:38,754 --> 01:22:40,521
- - I'm not coming back up.
- - Nick:<i> Okay.</i>
- 1832
- 01:22:41,957 --> 01:22:43,023
- Daniel:
- <i> I'm taking a pretty big hit...</i>
- 1833
- 01:22:44,592 --> 01:22:46,260
- <i> But overall</i>
- <i> the mining experience</i>
- 1834
- 01:22:46,262 --> 01:22:47,528
- <i> has still been worth it.</i>
- 1835
- 01:22:51,833 --> 01:22:53,600
- <i> My mining days</i>
- <i> may be over,</i>
- 1836
- 01:22:53,602 --> 01:22:55,803
- <i> but I'm still very involved</i>
- <i> with bitcoin.</i>
- 1837
- 01:22:55,805 --> 01:22:57,972
- With bitcoin,
- it's a money system where
- 1838
- 01:22:57,974 --> 01:23:01,041
- it's backed by math.
- It's back by the laws
- of mathematics
- 1839
- 01:23:01,043 --> 01:23:02,743
- and by the rules
- of the protocol.
- 1840
- 01:23:02,745 --> 01:23:04,745
- I keep thinking
- that there's gotta be
- an easier way
- 1841
- 01:23:04,747 --> 01:23:06,447
- to just set up
- a secondary protocol
- 1842
- 01:23:06,449 --> 01:23:08,415
- to trade private keys.
- 1843
- 01:23:08,417 --> 01:23:10,751
- Every time I log on,
- I see another dot on China
- 1844
- 01:23:10,753 --> 01:23:13,420
- and I'm like, this is why
- right now the price has gone up.
- 1845
- 01:23:13,422 --> 01:23:16,557
- Daniel:
- <i> The price is</i>
- <i> nearing 150 again.</i>
- 1846
- 01:23:16,559 --> 01:23:18,492
- <i> Many attribute it</i>
- <i> to the explosion</i>
- 1847
- 01:23:18,494 --> 01:23:20,894
- <i> of bitcoin's popularity</i>
- <i> in China.</i>
- 1848
- 01:23:20,896 --> 01:23:22,663
- What's happened recently
- is Chinese people
- 1849
- 01:23:22,665 --> 01:23:23,998
- have really come
- and adopted bitcoin.
- 1850
- 01:23:24,000 --> 01:23:26,834
- <i> As a culture,</i>
- <i> as a nation</i>
- 1851
- 01:23:26,836 --> 01:23:28,836
- <i> Chinese people are keen</i>
- <i> to learn about</i>
- 1852
- 01:23:28,838 --> 01:23:30,871
- <i> things that are</i>
- <i> on the Internet,</i>
- 1853
- 01:23:30,873 --> 01:23:32,606
- <i> things that involve</i>
- <i> math and science.</i>
- 1854
- 01:23:32,608 --> 01:23:35,409
- <i> We think that China can really</i>
- <i> contribute in this space</i>
- 1855
- 01:23:35,411 --> 01:23:37,644
- and help bring bitcoin
- to the mainstream.
- 1856
- 01:23:37,646 --> 01:23:39,780
- Daniel:
- <i> Germany's another part</i>
- <i> of the world</i>
- 1857
- 01:23:39,782 --> 01:23:41,415
- <i> where bitcoin</i>
- <i> has found a home.</i>
- 1858
- 01:23:41,417 --> 01:23:43,884
- Woman:
- <i> It's starting to get normal</i>
- <i> if one person a day</i>
- 1859
- 01:23:43,886 --> 01:23:46,286
- <i> comes in and buys</i>
- <i> a coffee with bitcoins.</i>
- 1860
- 01:23:46,288 --> 01:23:49,223
- People are looking
- for a new way of paying--
- 1861
- 01:23:49,225 --> 01:23:50,824
- not through banks,
- not with Euros,
- 1862
- 01:23:50,826 --> 01:23:51,992
- not with dollars.
- Something new.
- 1863
- 01:23:53,795 --> 01:23:55,829
- Daniel:
- <i> The German ministry of finance</i>
- 1864
- 01:23:55,831 --> 01:23:57,931
- <i> even became the first</i>
- <i> governing body</i>
- 1865
- 01:23:57,933 --> 01:24:00,567
- <i> to officially classify bitcoin</i>
- <i> as "private money."</i>
- 1866
- 01:24:00,569 --> 01:24:02,703
- I believe if we want to get
- 1867
- 01:24:02,705 --> 01:24:04,772
- some justice back
- into our society,
- 1868
- 01:24:04,774 --> 01:24:07,741
- <i> we should reduce</i>
- <i> the importance of the banks.</i>
- 1869
- 01:24:07,743 --> 01:24:10,778
- <i> Bitcoin is banking</i>
- <i> without banks,</i>
- 1870
- 01:24:10,780 --> 01:24:11,278
- so here we go.
- 1871
- 01:24:15,083 --> 01:24:17,885
- The FBI today shut down
- what it's calling
- 1872
- 01:24:17,887 --> 01:24:20,187
- the most sophisticated
- Internet site
- 1873
- 01:24:20,189 --> 01:24:22,456
- <i> in the business</i>
- <i> of selling hard drugs,</i>
- 1874
- 01:24:22,458 --> 01:24:25,225
- <i> including heroin,</i>
- <i> cocaine and LSD.</i>
- 1875
- 01:24:25,227 --> 01:24:26,727
- Daniel:
- <i> In the Sci-Fi section</i>
- 1876
- 01:24:26,729 --> 01:24:28,796
- <i> of a San Francisco</i>
- <i> public library,</i>
- 1877
- 01:24:28,798 --> 01:24:30,964
- <i> undercover agents</i>
- <i> surprised a young man</i>
- 1878
- 01:24:30,966 --> 01:24:33,467
- <i> quietly working</i>
- <i> on his laptop.</i>
- 1879
- 01:24:33,469 --> 01:24:36,236
- <i> They arrested a 29-year-old</i>
- <i> software engineer</i>
- 1880
- 01:24:36,238 --> 01:24:38,205
- <i> named Ross Albrecht</i>
- 1881
- 01:24:38,207 --> 01:24:40,140
- <i> and accused him</i>
- <i> of being the mastermind</i>
- 1882
- 01:24:40,142 --> 01:24:42,609
- <i> behind the silk road.</i>
- 1883
- 01:24:42,611 --> 01:24:44,311
- People have always tied
- the silk road to it.
- 1884
- 01:24:44,313 --> 01:24:46,213
- Media has always
- tied the silk road to it,
- 1885
- 01:24:46,215 --> 01:24:49,716
- as if silk road is bitcoin,
- but it's not.
- 1886
- 01:24:49,718 --> 01:24:52,619
- <i> This may be a sign</i>
- <i> that bitcoin is growing up.</i>
- 1887
- 01:24:52,621 --> 01:24:54,655
- It's funny. My friend
- just I.M.'D me and said,
- 1888
- 01:24:54,657 --> 01:24:55,989
- "silk road got raided
- 1889
- 01:24:55,991 --> 01:24:59,393
- and the government seized
- $3.6 million in bitcoin.
- 1890
- 01:24:59,395 --> 01:25:02,262
- Is there a way
- to invalidate bitcoins?"
- ( Chuckles )
- 1891
- 01:25:02,264 --> 01:25:04,131
- I replied, "no."
- 1892
- 01:25:04,133 --> 01:25:06,233
- <i> - ( Daniel speaking )</i>
- <i> - ( Keyboard clicking )</i>
- 1893
- 01:25:11,573 --> 01:25:13,107
- People are starting
- to finally realize
- 1894
- 01:25:13,109 --> 01:25:15,909
- that bitcoin has nothing
- to do with how people use it.
- 1895
- 01:25:15,911 --> 01:25:17,411
- It's just money.
- It's like gold.
- 1896
- 01:25:19,080 --> 01:25:20,781
- <i> Of course,</i>
- <i> not everyone thinks</i>
- 1897
- 01:25:20,783 --> 01:25:23,016
- <i> bitcoin is the way</i>
- <i> of the future.</i>
- 1898
- 01:25:23,018 --> 01:25:24,751
- James angel:
- <i> Bitcoin will not be able</i>
- 1899
- 01:25:24,753 --> 01:25:27,554
- <i> to survive or thrive</i>
- 1900
- 01:25:27,556 --> 01:25:30,290
- without becoming legitimate.
- 1901
- 01:25:30,292 --> 01:25:31,558
- I don't see it
- 1902
- 01:25:31,560 --> 01:25:33,827
- having a serious place
- 1903
- 01:25:33,829 --> 01:25:34,995
- in our financial system.
- 1904
- 01:25:36,197 --> 01:25:37,431
- <i> There are</i>
- <i> really good reasons</i>
- 1905
- 01:25:37,433 --> 01:25:39,733
- <i> why we have central banks</i>
- 1906
- 01:25:39,735 --> 01:25:42,636
- <i> that have the power</i>
- <i> to put out financial fires</i>
- 1907
- 01:25:42,638 --> 01:25:44,104
- <i> by printing money.</i>
- 1908
- 01:25:44,106 --> 01:25:47,474
- I'm worried
- about the technology.
- 1909
- 01:25:47,476 --> 01:25:49,243
- <i> As darth vader once said,</i>
- 1910
- 01:25:49,245 --> 01:25:51,245
- <i> "don't put all your faith</i>
- <i> in technology."</i>
- 1911
- 01:25:51,247 --> 01:25:52,813
- <i> I think</i>
- <i> 10 years from now,</i>
- 1912
- 01:25:52,815 --> 01:25:54,915
- <i> we'll look back on this</i>
- <i> and just kind of chuckle</i>
- 1913
- 01:25:54,917 --> 01:25:57,284
- <i> at the bitcoin fad.</i>
- 1914
- 01:25:57,286 --> 01:25:59,486
- "Oh yeah,
- I remember bitcoin.
- 1915
- 01:25:59,488 --> 01:26:02,556
- Oh yeah,
- I remember that."
- 1916
- 01:26:02,558 --> 01:26:04,024
- Man:
- It's financial freedom.
- 1917
- 01:26:04,026 --> 01:26:06,393
- Come on, bro.
- This is the new world, bro.
- 1918
- 01:26:06,395 --> 01:26:08,195
- Daniel:
- <i> Others are more optimistic.</i>
- 1919
- 01:26:08,197 --> 01:26:09,963
- I think
- within 10 years,
- 1920
- 01:26:09,965 --> 01:26:12,065
- you're gonna have a lot
- of people using bitcoin,
- 1921
- 01:26:12,067 --> 01:26:13,734
- but they're not
- gonna realize that
- they're using it,
- 1922
- 01:26:13,736 --> 01:26:15,802
- because it's gonna
- be a protocol that's
- imbedded underneath
- 1923
- 01:26:15,804 --> 01:26:17,971
- whatever financial service
- they're using today.
- 1924
- 01:26:17,973 --> 01:26:19,973
- <i> And by bitcoin</i>
- <i> being open-source</i>
- 1925
- 01:26:19,975 --> 01:26:21,875
- <i> it's what can allow</i>
- <i> all these different</i>
- <i> mobile wallets</i>
- 1926
- 01:26:21,877 --> 01:26:23,443
- <i> and all these</i>
- <i> financial technologies</i>
- 1927
- 01:26:23,445 --> 01:26:24,645
- <i> to all talk to each other,</i>
- 1928
- 01:26:24,647 --> 01:26:27,047
- especially
- around the world.
- 1929
- 01:26:27,049 --> 01:26:28,649
- Voorhees:
- <i> Whoever the hell satoshi was,</i>
- 1930
- 01:26:28,651 --> 01:26:31,084
- <i> he should go down in history</i>
- <i> as one of the greatest people</i>
- 1931
- 01:26:31,086 --> 01:26:32,719
- <i> or groups of people</i>
- <i> that ever existed.</i>
- 1932
- 01:26:32,721 --> 01:26:34,955
- This is a technology
- that mankind has needed
- 1933
- 01:26:34,957 --> 01:26:36,490
- for thousands of years.
- 1934
- 01:26:36,492 --> 01:26:38,825
- People have been dealing
- with monetary shenanigans
- 1935
- 01:26:38,827 --> 01:26:41,628
- since the Roman empire
- clipping gold coins.
- 1936
- 01:26:41,630 --> 01:26:43,897
- And finally people
- can escape it.
- 1937
- 01:26:43,899 --> 01:26:47,634
- I'm cautious to try
- to predict the future.
- 1938
- 01:26:47,636 --> 01:26:49,069
- <i> We don't really know.</i>
- 1939
- 01:26:49,071 --> 01:26:51,705
- <i> I tend to be</i>
- <i> a technological optimist.</i>
- 1940
- 01:26:51,707 --> 01:26:53,974
- I see the democratization
- of technology
- 1941
- 01:26:53,976 --> 01:26:55,709
- as being
- a really positive thing.
- 1942
- 01:26:55,711 --> 01:26:59,646
- <i> And I think that's</i>
- <i> a really powerful force</i>
- 1943
- 01:26:59,648 --> 01:27:01,515
- <i> that is really</i>
- <i> only just beginning.</i>
- 1944
- 01:27:26,007 --> 01:27:28,175
- Not bad. Oh!
- 1945
- 01:27:30,378 --> 01:27:32,279
- ( Grunts,
- breathing hard )
- 1946
- 01:27:32,281 --> 01:27:34,081
- ( Laughs )
- 1947
- 01:27:37,418 --> 01:27:39,219
- ( Sighs )
- 1948
- 01:27:39,221 --> 01:27:42,356
- Recently, as the price has
- been floating around 200 again,
- 1949
- 01:27:42,358 --> 01:27:45,058
- I have a lot of friends
- that have asked me,
- 1950
- 01:27:45,060 --> 01:27:48,462
- "are you gonna cash out
- some of your bitcoins now?
- 1951
- 01:27:48,464 --> 01:27:51,865
- The price is really high.
- You should get some dollars
- out of it."
- 1952
- 01:27:51,867 --> 01:27:54,935
- I kind of tell 'em,
- "no, don't you see it?"
- 1953
- 01:27:56,771 --> 01:27:58,572
- <i> I've met so many</i>
- <i> interesting people</i>
- 1954
- 01:27:58,574 --> 01:28:00,407
- and there seems to be
- one thing that kind of binds
- 1955
- 01:28:00,409 --> 01:28:02,709
- a lot of them together,
- and that is that
- 1956
- 01:28:02,711 --> 01:28:05,145
- they're willing
- to face opposition
- 1957
- 01:28:05,147 --> 01:28:06,980
- <i>and follow through on the ideas</i>
- <i> that they believe in.</i>
- 1958
- 01:28:08,483 --> 01:28:10,250
- <i> The people who try</i>
- <i> the crazy ideas</i>
- 1959
- 01:28:10,252 --> 01:28:12,919
- <i> often fail and then everybody</i>
- <i> likes to point their fingers</i>
- 1960
- 01:28:12,921 --> 01:28:15,055
- <i> and laugh and say,</i>
- <i> "that was such a stupid idea."</i>
- 1961
- 01:28:15,057 --> 01:28:17,557
- <i> But once in a while</i>
- <i> it works out.</i>
- 1962
- 01:28:17,559 --> 01:28:19,559
- <i> I think bitcoin</i>
- <i> is proving to be</i>
- 1963
- 01:28:19,561 --> 01:28:20,961
- <i> one of those things.</i>
- 1964
- 01:28:28,102 --> 01:28:29,836
- The decision to bring
- virtual currency
- 1965
- 01:28:29,838 --> 01:28:31,938
- within the scope
- of our regulatory framework
- 1966
- 01:28:31,940 --> 01:28:33,073
- should be viewed as
- 1967
- 01:28:33,075 --> 01:28:34,941
- a positive development
- for this sector.
- 1968
- 01:28:34,943 --> 01:28:36,643
- I'm here to testify,
- because I believe
- 1969
- 01:28:36,645 --> 01:28:38,812
- that digital currency
- represents
- 1970
- 01:28:38,814 --> 01:28:40,714
- one of the most important
- technical
- 1971
- 01:28:40,716 --> 01:28:42,749
- and economic innovations
- of our time.
- 1972
- 01:28:42,751 --> 01:28:45,652
- We are enthusiastic
- about the potential
- 1973
- 01:28:45,654 --> 01:28:46,887
- of virtual currencies
- 1974
- 01:28:46,889 --> 01:28:48,989
- and the digital economy
- for social good.
- 1975
- 01:28:53,594 --> 01:28:56,196
- This latest generation
- of technology
- 1976
- 01:28:56,198 --> 01:28:57,731
- which we're talking
- about today
- 1977
- 01:28:57,733 --> 01:29:00,200
- takes things to a whole
- new level.
- 1978
- 01:29:00,202 --> 01:29:01,768
- There's a bit
- 1979
- 01:29:01,770 --> 01:29:03,136
- of a shared
- responsibility here
- 1980
- 01:29:03,138 --> 01:29:04,871
- in trying to figure out
- how to make this work.
- 1981
- 01:29:04,873 --> 01:29:07,541
- It is a little strange
- that bitcoin--
- 1982
- 01:29:07,543 --> 01:29:08,809
- we don't know who
- the creator is
- 1983
- 01:29:08,811 --> 01:29:11,745
- and so that often
- 1984
- 01:29:11,747 --> 01:29:13,113
- conjures up the idea
- that there's
- 1985
- 01:29:13,115 --> 01:29:14,781
- some risk here that
- we have not--
- 1986
- 01:29:14,783 --> 01:29:16,183
- you don't think it was
- Al Gore, do you?
- 1987
- 01:29:16,185 --> 01:29:17,918
- ( Laughter )
- 1988
- 01:29:19,787 --> 01:29:21,288
- If you think a little broadly,
- 1989
- 01:29:21,290 --> 01:29:23,757
- this could, again, have
- huge huge implications.
- 1990
- 01:29:25,193 --> 01:29:27,627
- <i> ( Chimes )</i>
- 1991
- 01:29:33,935 --> 01:29:37,237
- Daniel:
- <i> 2013 was the year bitcoin</i>
- <i> first entered the mainstream</i>
- 1992
- 01:29:37,239 --> 01:29:40,741
- <i> and 2014 got off</i>
- <i> to a dramatic start.</i>
- 1993
- 01:29:40,743 --> 01:29:43,243
- <i> Just as we were wrapping</i>
- <i> things up on our film,</i>
- 1994
- 01:29:43,245 --> 01:29:45,112
- <i> Charlie shrem was arrested</i>
- 1995
- 01:29:45,114 --> 01:29:48,148
- <i> after returning</i>
- <i> from a bitcoin conference</i>
- <i> in Amsterdam.</i>
- 1996
- 01:29:48,150 --> 01:29:51,151
- <i> He could be facing</i>
- <i> up to 30 years in prison</i>
- 1997
- 01:29:51,153 --> 01:29:53,787
- <i> on charges related</i>
- <i> to his activities</i>
- <i> at bitinstant.</i>
- 1998
- 01:29:57,925 --> 01:30:00,560
- In j.F.K.,
- you walk right off the plane,
- 1999
- 01:30:00,562 --> 01:30:02,796
- and you go straight
- to customs.
- 2000
- 01:30:02,798 --> 01:30:04,698
- About three agents
- in front of me
- 2001
- 01:30:04,700 --> 01:30:06,800
- and then four agents
- behind me said,
- 2002
- 01:30:06,802 --> 01:30:08,702
- "Mr. shrem,
- please come with us."
- 2003
- 01:30:08,704 --> 01:30:11,271
- <i> They took me</i>
- <i> to an interrogating room,</i>
- 2004
- 01:30:11,273 --> 01:30:12,873
- <i> told me that</i>
- <i> I'm being arrested</i>
- 2005
- 01:30:12,875 --> 01:30:15,108
- <i> on federal crimes</i>
- <i> of money laundering,</i>
- 2006
- 01:30:15,110 --> 01:30:17,110
- <i> running an unlicensed</i>
- <i> money transmission business</i>
- 2007
- 01:30:17,112 --> 01:30:20,781
- <i> and failing to file</i>
- <i> suspicious-activity reports.</i>
- 2008
- 01:30:20,783 --> 01:30:23,884
- Daniel:
- <i> The indictment alleged that</i>
- <i> Charlie had sold bitcoins</i>
- 2009
- 01:30:23,886 --> 01:30:26,520
- <i> to a reseller that operated</i>
- <i> on the silk road.</i>
- 2010
- 01:30:27,555 --> 01:30:29,623
- What sucks
- is the house arrest.
- 2011
- 01:30:29,625 --> 01:30:33,059
- I have to pretty much be here
- all the time, every day.
- I can't even go outside
- 2012
- 01:30:33,061 --> 01:30:35,295
- unless I'm going
- to my lawyer's office,
- which is once or twice a week.
- 2013
- 01:30:36,597 --> 01:30:38,365
- <i> I pretty much lost</i>
- <i> my freedom,</i>
- 2014
- 01:30:38,367 --> 01:30:40,400
- <i> lost everything</i>
- <i> that I've built</i>
- <i> over the past year.</i>
- 2015
- 01:30:43,204 --> 01:30:45,405
- Daniel:
- <i> Charlie's arrest wasn't</i>
- <i> the only bad news</i>
- 2016
- 01:30:45,407 --> 01:30:48,074
- <i> that rocked the community</i>
- <i> in the new year.</i>
- 2017
- 01:30:48,076 --> 01:30:51,178
- <i> For months there had</i>
- <i> been rumors that mt. Gox</i>
- <i> had become insolvent.</i>
- 2018
- 01:30:51,180 --> 01:30:54,881
- <i> And in February</i>
- <i> the site went offline.</i>
- 2019
- 01:30:54,883 --> 01:30:57,350
- - ( Man speaks )
- - ( Karpeles speaks )
- 2020
- 01:30:57,352 --> 01:30:57,951
- Do you still have
- everyone's bitcoins?
- 2021
- 01:31:01,856 --> 01:31:03,757
- I'm not touching you.
- I haven't touched you.
- 2022
- 01:31:03,759 --> 01:31:06,293
- Do you still have
- everyone's bitcoins?
- 2023
- 01:31:06,295 --> 01:31:08,295
- ( Karpeles speaks )
- 2024
- 01:31:12,467 --> 01:31:14,034
- ( Cameras clicking )
- 2025
- 01:31:14,036 --> 01:31:15,368
- Daniel:
- <i> The rumors turned out</i>
- <i> to be true.</i>
- 2026
- 01:31:15,370 --> 01:31:17,337
- ( Speaking Japanese )
- 2027
- 01:31:33,621 --> 01:31:35,889
- Daniel:
- <i> Mt. Gox had reportedly</i>
- <i> been hacked</i>
- 2028
- 01:31:35,891 --> 01:31:38,892
- <i> and nearly half</i>
- <i> a billion dollars worth</i>
- <i> of bitcoin were missing.</i>
- 2029
- 01:31:42,830 --> 01:31:45,632
- <i> Mark was forced</i>
- <i> to step down as c.E.O.</i>
- 2030
- 01:31:45,634 --> 01:31:47,801
- <i> And mt. Gox went</i>
- <i> into bankruptcy.</i>
- 2031
- 01:31:54,375 --> 01:31:56,977
- A national
- magazine claims
- to have identified
- 2032
- 01:31:56,979 --> 01:31:58,712
- the mysterious founder
- of the worldwide
- 2033
- 01:31:58,714 --> 01:32:00,614
- digital currency
- called bitcoin.
- 2034
- 01:32:00,616 --> 01:32:02,115
- <i> Tonight he is</i>
- <i> speaking out,</i>
- 2035
- 01:32:02,117 --> 01:32:03,450
- <i> but he says he has</i>
- 2036
- 01:32:03,452 --> 01:32:04,951
- <i> nothing whatsoever to do</i>
- <i> with bitcoin.</i>
- 2037
- 01:32:04,953 --> 01:32:06,887
- Man:
- <i> Why did you create</i>
- <i> bitcoin, sir?</i>
- 2038
- 01:32:06,889 --> 01:32:07,954
- Okay.
- 2039
- 01:32:09,624 --> 01:32:11,224
- ( Laughs )
- 2040
- 01:32:11,226 --> 01:32:12,792
- Man #2:
- <i> Sir, can we ask you</i>
- <i> about bitcoin?</i>
- 2041
- 01:32:12,794 --> 01:32:14,027
- - No no no no no.
- -<i> Why were you involved</i>
- <i> in bitcoin?</i>
- 2042
- 01:32:14,029 --> 01:32:17,564
- Okay, I'm not involved
- in bitcoin, okay?
- 2043
- 01:32:17,566 --> 01:32:18,698
- -<i> Who's involved in it? </i>
- - Wait a minute.
- 2044
- 01:32:18,700 --> 01:32:19,966
- I want a free lunch first.
- 2045
- 01:32:19,968 --> 01:32:21,368
- I'm gonna go with this guy.
- 2046
- 01:32:22,737 --> 01:32:25,872
- I want a big one.
- ( Laughs ) Yeah.
- 2047
- 01:32:25,874 --> 01:32:27,908
- Oh, okay. Yeah,
- this will be good.
- 2048
- 01:32:27,910 --> 01:32:30,744
- - Oh jeez.
- - We have some water.
- 2049
- 01:32:30,746 --> 01:32:33,079
- Hey, where's yours?
- 2050
- 01:32:33,081 --> 01:32:36,182
- Daniel:
- <i> "Newsweek" claimed</i>
- <i> the creator of bitcoin</i>
- 2051
- 01:32:36,184 --> 01:32:38,218
- <i> had not used a pseudonym.</i>
- 2052
- 01:32:38,220 --> 01:32:39,953
- <i> They connected the dots</i>
- 2053
- 01:32:39,955 --> 01:32:41,955
- <i> to a 64-year-old</i>
- <i> Japanese man</i>
- 2054
- 01:32:41,957 --> 01:32:44,057
- <i> living in Los Angeles...</i>
- 2055
- 01:32:44,059 --> 01:32:47,527
- <i> Named Dorian prentice</i>
- <i> satoshi nakamoto.</i>
- 2056
- 01:32:48,930 --> 01:32:51,464
- <i> Nakamoto immediately denied</i>
- <i> the allegations</i>
- 2057
- 01:32:51,466 --> 01:32:53,800
- <i> and said he'd tell his story</i>
- <i> to the first reporter</i>
- 2058
- 01:32:53,802 --> 01:32:55,602
- <i> who agreed</i>
- <i> to buy him lunch.</i>
- 2059
- 01:32:55,604 --> 01:32:57,437
- The main reason
- I'm here is
- 2060
- 01:32:57,439 --> 01:33:00,240
- to clear my name,
- that I have nothing
- 2061
- 01:33:00,242 --> 01:33:02,142
- - to do with bitcoin...
- - Yup.
- 2062
- 01:33:02,144 --> 01:33:04,911
- ...nothing to do
- with developing.
- 2063
- 01:33:04,913 --> 01:33:08,114
- I was just an engineer
- doing something else.
- 2064
- 01:33:08,116 --> 01:33:10,350
- Daniel:
- <i> As the media</i>
- <i> frenzy escalated,</i>
- 2065
- 01:33:10,352 --> 01:33:13,186
- <i> "newsweek's" claims</i>
- <i> started to unravel.</i>
- 2066
- 01:33:13,188 --> 01:33:15,922
- <i> Holes in the story</i>
- <i> led many to believe</i>
- 2067
- 01:33:15,924 --> 01:33:17,924
- <i> it was nothing more</i>
- <i> than sensational journalism.</i>
- 2068
- 01:33:19,393 --> 01:33:21,094
- <i> There was</i>
- <i> no conclusive evidence</i>
- 2069
- 01:33:21,096 --> 01:33:22,762
- <i> tying Dorian to bitcoin.</i>
- 2070
- 01:33:24,365 --> 01:33:25,899
- <i> Amidst the uncertainty,</i>
- 2071
- 01:33:25,901 --> 01:33:27,334
- <i> on that same day...</i>
- 2072
- 01:33:28,469 --> 01:33:30,236
- <i> A comment suddenly appeared</i>
- 2073
- 01:33:30,238 --> 01:33:33,773
- <i> on satoshi's long-dormant</i>
- <i> profile page which read...</i>
- 2074
- 01:33:42,416 --> 01:33:44,818
- <i> Maybe we'll never know</i>
- <i> who created bitcoin...</i>
- 2075
- 01:33:46,020 --> 01:33:47,554
- <i> But the truth is</i>
- 2076
- 01:33:47,556 --> 01:33:49,122
- <i> it doesn't really matter.</i>
- 2077
- 01:33:50,858 --> 01:33:52,459
- <i> Bitcoin belongs</i>
- <i> to everyone.</i>
- 2078
- 01:33:53,594 --> 01:33:55,762
- <i> And the future</i>
- <i> is ours to build.</i>
- 2079
- 01:34:06,340 --> 01:34:08,074
- <i> ( Electronica music playing )</i>
- 2080
- 01:34:22,456 --> 01:34:24,958
- Put $100,000
- on market orders
- right now.
- 2081
- 01:34:24,960 --> 01:34:26,626
- - Why?
- - Let's do it.
- Let's do it. Come on.
- 2082
- 01:34:26,628 --> 01:34:28,595
- - Come on.
- - Why? What's
- gonna happen?
- 2083
- 01:34:28,597 --> 01:34:30,597
- Buy 100k worth
- of bitcoins right now.
- 2084
- 01:34:30,599 --> 01:34:31,731
- - Why?
- - Do it.
- 2085
- 01:34:31,733 --> 01:34:33,099
- - I don't wanna do it.
- - Do it.
- 2086
- 01:34:33,101 --> 01:34:34,734
- You owe me
- $100,000. Do it.
- 2087
- 01:34:34,736 --> 01:34:36,636
- I'll send you
- $100,000 in bitcoins.
- 2088
- 01:34:36,638 --> 01:34:38,204
- No, you buy it.
- But 100k right now.
- 2089
- 01:34:38,206 --> 01:34:40,874
- Dude, I can't. I need
- the floating gox
- for volume.
- 2090
- 01:34:40,876 --> 01:34:44,044
- Closing bell
- for satoshi square!
- 2091
- 01:34:44,046 --> 01:34:45,145
- All right,
- does this look right?
- 2092
- 01:34:45,147 --> 01:34:46,579
- 1-n-p-w? Yup.
- 2093
- 01:34:46,581 --> 01:34:48,048
- Yup, okay.
- 2094
- 01:34:48,050 --> 01:34:49,049
- And I owe you 0.2?
- 2095
- 01:34:49,051 --> 01:34:51,317
- - Uh... 0.18.
- - 0.18.
- 2096
- 01:34:51,319 --> 01:34:54,654
- This is for
- bitcoin t-shirt.
- 2097
- 01:34:54,656 --> 01:34:56,823
- I got 'em.
- A pleasure, sir.
- 2098
- 01:34:56,825 --> 01:34:58,324
- Great doing
- business with you.
- 2099
- 01:34:58,326 --> 01:35:00,427
- - Gonna wear your
- shirt proudly.
- - Do it.
- 2100
- 01:35:00,429 --> 01:35:02,128
- That's one thing
- that's interesting
- about bitcoin.
- 2101
- 01:35:02,130 --> 01:35:04,197
- It's like, how do
- you declare losses?
- 2102
- 01:35:04,199 --> 01:35:06,766
- You point to two
- transactions that
- happened on the Internet
- 2103
- 01:35:06,768 --> 01:35:09,069
- and you tell the I.R.S.
- That you owned that?
- 2104
- 01:35:09,071 --> 01:35:11,438
- "Oh, I used to own
- that and I lost
- the private key."
- 2105
- 01:35:12,707 --> 01:35:14,374
- And then if you
- really do lose it,
- 2106
- 01:35:14,376 --> 01:35:16,376
- how do you write it
- off for taxes?
- 2107
- 01:35:16,378 --> 01:35:18,044
- Oh, that's gonna
- be interesting.
- 2108
- 01:35:18,046 --> 01:35:19,679
- ( Thunder crashes )
- 2109
- 01:35:22,283 --> 01:35:24,584
- We love bitcoin.
- 2110
- 01:35:24,586 --> 01:35:27,020
- Okay, guys, we're gonna
- play a special version
- of hopscotch
- 2111
- 01:35:27,022 --> 01:35:30,290
- called "bitcoin
- blockchain hopscotch."
- 2112
- 01:35:30,292 --> 01:35:33,126
- Oh, you lost
- all your bitcoins!
- 2113
- 01:35:33,128 --> 01:35:34,728
- ( Sighs )
- 2114
- 01:35:34,730 --> 01:35:36,596
- Daniel:
- <i> Who is satoshi nakamoto?</i>
- 2115
- 01:35:36,598 --> 01:35:38,264
- ( Chuckles )
- 2116
- 01:35:38,266 --> 01:35:41,234
- I'd... rather
- not tell you,
- 2117
- 01:35:41,236 --> 01:35:42,602
- - but yeah.
- -<i> Oh, do you know?</i>
- 2118
- 01:35:42,604 --> 01:35:45,338
- Uh, maybe not, maybe.
- 2119
- 01:35:45,340 --> 01:35:46,906
- <i> Oh.</i>
- <i> ( Chuckles )</i>
- 2120
- 01:35:46,908 --> 01:35:49,776
- You know,
- I have a bitcoin
- and a half myself now.
- 2121
- 01:35:49,778 --> 01:35:51,578
- Which I think
- probably in 10 years
- 2122
- 01:35:55,416 --> 01:35:57,083
- Voorhees:
- <i> When you think</i>
- <i> about it hard enough</i>
- 2123
- 01:35:57,085 --> 01:35:59,452
- <i> on a global scale,</i>
- <i> this is a net gain</i>
- <i> for humanity.</i>
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