Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated:
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[low hum]
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[sirens wailing]
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[flames crackling]
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LAURI LOVE: I'm Lauri Love.
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I'm a electrical engineerstudent and activist,
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internet busybody, [chuckles]believer in freedom
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and autonomy andopportunity and franchise,
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and try to do the thingsthat I can do to help those.
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We're here at the site of theGrenfell Tower atrocity, where
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people burned to their death.
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So there's a few
hundred people here
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to have a silent walk to markthe fact that there's still
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unfinished business here.
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And that happened in aself-organized, decentralized
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way.
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And one of the benefits
of the internet,
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as long as we
maintain that freedom,
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is that there's low
barriers of entry
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to being involved
in a protest action
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or in a community responseto address a problem.
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And we'll need that whenthe things that we rely on
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to address problems fall short.
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And increasingly,they're seeming to do so.
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A lot of people usetechnology on a daily basis.
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They don't really understand it.
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They don't understand the waythat it can be used to control,
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or it can be used to liberate.
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When we use Twitter or
when we use Facebook,
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we're not really the users,we're not really the customers.
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We're the product.
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Every day that you're
on that internet,
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on that social network,you're being strip mined.
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Your consumption
habits, your choice
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of what entertainment
to watch, tie
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down to a fixed identity
that's correlated
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with your purchasing.
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You are being monetized
on a daily basis,
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and there's no informed
bargaining there
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because people didn't understandthat this was potentially
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a system of control
until it became one.
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The internet is now a
tool of the accumulation
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of central power.
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What that means is we're
in a precarious position
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if we don't take back someof that freedom and autonomy.
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The blockchain enables differentkinds of pattern and structure
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to grow.
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It enables you to collaborate,not just on the level of ideas,
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but on the level ofvalue and value creation.
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Gives you an actual power toeffect change in the world.
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And it's going to
scare the shit out
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of some very powerful people.
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[atmospheric music]
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JAMIE DIMON: I've
also told people
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that it can trade at $100,000before it trades to zero.
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If you're stupid enough to buyit, you'll pay the price for it
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one day.
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I don't personally
understand it.
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Who cares about Bitcoin?
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NEWS ANCHOR: Bitcoin's rollercoaster ride has seemingly
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come from virtually nowhere andinto the public consciousness,
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of course, over the
last couple years--
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MAN: If you're a
modern criminal,
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chances are you've used
to buy guns, drugs,
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and even launder money.
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MAN: So there is a
use case for Bitcoin--
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if you're a criminal.
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[laughter]
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Great, great product.
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I mean that.
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MAN: I don't know
who started it.
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Who's actually there?
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Is it ISIS?
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MAN: Bitcoin is still in
that sort of dark period
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that most people
don't understand it,
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but are willing to trade
because they think--
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MAN: Make no mistake.
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This is the Wild West.
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There are now 1,300
cryptocurrencies--
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MAN: Don't want to
see investors make
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the mistake of getting
in here if they
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are getting into somethingthat's fraudulent.
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MAN: --no consumer protection.
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MAN: --going up in thenext three to five years.
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MAN: Is it a risk?
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Absolutely.
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Why not make a buck?
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[cash register ding]
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MAN: --biggest--
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MAN: Why not make a buck?
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MAN: I don't understand it.
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MAN: Why not make a buck?
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MAN: We don't know--
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MAN: Why not make a buck?
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MAN: The charts are ugly.
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MAN: Why not make a--
why not make a-- why not
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make a-- why not make a buck?
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MAN: The underlying technology,it's called blockchain.
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MAN: --Bitcoin price
might be in a bubble,
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but I think the blockchaintechnology behind it
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is here to stay.
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MAN: The next generation
of the internet.
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NARRATOR: The informationage is only in its infancy,
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and yet we have
already seen a barrage
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of disruptive technologies.
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Perhaps the most captivating andpolarizing of these innovations
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is cryptocurrency
and blockchain.
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Do they represent
a revolution that
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will drive the next
phase of this era,
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or are they a sham createdby overzealous hackers
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and fraudsters?
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To find the answer
requires going
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back to the early days
of the internet itself.
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[projector whirring]
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JOHN GILMORE: Late
1970s, early 1980s.
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One of the beautiful
things about internet
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back in those days, there was nocentral point of control in it.
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If you could talk
anybody on the Net
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into being your
neighbor on the Usenet,
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then you could get copiesof any message they got.
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[phones dialing]
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It was sort of like a forum,but distributed worldwide.
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You could post
messages in couple
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of hundred different
topic areas,
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and that message would
go into your computer.
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And then the next time
it made a phone call out
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to one of its
neighboring computers,
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that message would
get transferred.
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So it would spreadthroughout the whole network.
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LAURI LOVE: There was a
very utopian ideal dream
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with the internet.
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It was a realized ideal
of not being vested
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in centralized
power or authority,
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but being a network that is opento all that anyone can access.
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The internet was democratized.
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NEWS REPORTER: A goal of theproject is to permit everyone--
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young and old, rich and poor--
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to be linked through
computer networks.
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BILL TAI: There was a rapidadvance in the '80s and '90s.
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Sort of, like,
private internets.
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And then, boom, the wholepublic thing just exploded.
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LAURI LOVE: We saw
the warning signs
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when the first centralizedservices were introduced.
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The negotiation changed betweenthe user and the provider
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of the service.
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Imagine if you bought a house,and the basement was locked,
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and only the original buildingcontractor had the key.
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If you needed to make a
change, repair anything,
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you had to go to him.
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You're at that person's mercy.
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NARRATOR: The internet becamean integral part of our lives,
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upending many establishedforms of business
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and promising a connected,democratized world
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through social networks.
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Criticism began to grow
as the internet became
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more centralized.
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While its worldwide
user base expanded,
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power was being concentratedin only a handful
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of giant services and platforms.
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But in 2008, everything
started to change.
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GEORGE W. BUSH:
We're in the midst
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of a serious financial crisis.
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I cannot underscore enoughhow serious an issue this is.
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NARRATOR: Amid a world economyon the verge of collapse,
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a theoretical manifesto emergedby a pseudonymous creator named
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Satoshi Nakamoto.
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While some have been
falsely identified
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as Bitcoin's creator--
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I just believe that somebodyput that fictitious name
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in there.
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NARRATOR: --and othershave claimed to be Satoshi
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in the flesh--
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So you're going to show methat Satoshi Nakamoto is you.
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Yes.
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NARRATOR: --the true identityof Satoshi is still unconfirmed.
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MARK JEFFREY: We don't knowwho Satoshi Nakamoto really is.
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Satoshi Nakamoto might
be Satoshi Nakamoto.
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It might be the NSA.
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It might be a company.
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It might be a smallwoman living in Arkansas.
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We literally have no idea.
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NARRATOR: But one
thing seems clear--
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whoever created Bitcoin andits underlying technology
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had their sights set onupending centralized power
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on the internet and beyond.
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ALEX: How would you explainthe appearance of Bitcoin?
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Well, I think
what's interesting
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there is suddenly thisthing came out of nowhere.
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It actually made a lot of newtypes of transaction possible
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that wouldn't have
been possible before.
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This website called
Silk Road was starting
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to actually use
cryptocurrency to do
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these illegal transactions.
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And it also brought Bitcoinonto everybody's radar.
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CHUCK SCHUMER: You want heroin,opium, cannabis, ecstasy,
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psychedelics, stimulants.
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You name it, they have it.
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MATTHEW GREEN: So
people were panicked.
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A lot of people
in law enforcement
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didn't really know
what to do about this.
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They thought that this wasgoing to completely undermine
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all of our legal systems
and our law enforcement.
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And to a certain extent, it did.
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Government needs to payattention to this technology.
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This was made all the
more clear last month,
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when federal law enforcementtook down and seized
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an online marketplace
called the Silk
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Road, on which many illegalproducts and services were
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bought and sold via Bitcoin.
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LAURA SHIN: What'sinteresting is that Bitcoin,
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it's proven that you can createa currency out of software,
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and people will value
it, and will use it.
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NARRATOR: In April of 2013,Bitcoin's value swells.
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Many call it a Ponzi
scheme and a bubble.
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REPORTER: What do you thinkof the Bitcoin bubble stories?
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Cover of the Financial
Times yesterday.
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NICK COLAS: Yeah.
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You know, bubble's aneasy term to throw around.
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The question, really, you haveto ask about Bitcoin is, is it
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going to move beyond justbeing this freak show reserve
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currency story of the
online world to being
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a real, viable, long-termtransactional currency?
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REPORTER: And you say yes.
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I say it's very possible.
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[ominous music]
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LAURI LOVE: What Satoshi didwas solve one of the biggest
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unsolved problems indistributed systems theory,
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which is the Byzantine
generals problem
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is that you have a
system that's not
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being centrally orchestrated.
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[battle noises]
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How do you keep it in consensus?
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If you're going to useit for electronic assets,
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then the thing you want
everyone to agree on
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is that something's
only been spent once.
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That's been called the
double spend problem.
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And it had already been provedthat this problem cannot be
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solved.
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MARK JEFFREY: Satoshi
Nakamoto came up
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with a solution
called the blockchain.
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A lot of people are
like, well, what's
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the blockchain versus Bitcoin?
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The blockchain is
the flux capacitor
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that makes Bitcoin possible.
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DOC BROWN: This is what makestime travel possible-- the flux
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capacitor.
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MARK JEFFREY: So
each cryptocurrency
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has its own blockchain.
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And the blockchain
is basically a record
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of all the transactions.
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There's a lot of
magic and crypto
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mysticism around the blockchain,but really, the answer
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is it's simply a record
of all the transactions,
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and it's constructed
in such a way
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that cheating is not
possible, and that there
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is no central server.
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[birds chirping]
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SPIROS MICHALAKIS: Myname is Spiros Michalakis.
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I am a quantum physicisthere at the CalTech Institute
259
00:10:29,193 --> 00:10:31,456
for Quantum
Information and Matter.
260
00:10:31,587 --> 00:10:33,067
The amazing thing
about the blockchain
261
00:10:33,197 --> 00:10:36,418
is how it takes some
localized information
262
00:10:36,548 --> 00:10:39,856
and decentralizes
it in a global way
263
00:10:39,987 --> 00:10:41,379
throughout the whole system.
264
00:10:41,510 --> 00:10:43,817
And this is actually
very similar to how
265
00:10:43,947 --> 00:10:46,080
we try to protect
quantum information
266
00:10:46,210 --> 00:10:49,953
from the environment bytaking the local information
267
00:10:50,084 --> 00:10:52,869
and encoding it in a veryglobal way, almost like--
268
00:10:53,000 --> 00:10:57,526
as we call-- in a fractal waythroughout all these tendrils
269
00:10:57,657 --> 00:11:01,704
where you have an initialseed, and then it would spread.
270
00:11:01,835 --> 00:11:04,620
And each part of
this fractal is one
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00:11:04,751 --> 00:11:06,753
of the users of the
blockchain making sure
272
00:11:06,883 --> 00:11:09,669
that the whole
thing is consistent.
273
00:11:09,799 --> 00:11:14,282
Each block contains
some transaction data.
274
00:11:14,412 --> 00:11:17,502
Each block in the
chain is verified
275
00:11:17,633 --> 00:11:20,288
and contains informationfrom the block before it.
276
00:11:20,418 --> 00:11:22,856
This transaction
history has an integrity
277
00:11:22,986 --> 00:11:24,901
that comes from this idea.
278
00:11:25,032 --> 00:11:28,209
And so if you want to
mess with the chain,
279
00:11:28,339 --> 00:11:30,515
you cannot just mess
with any one block.
280
00:11:30,646 --> 00:11:33,127
You have to mess with
all of its history.
281
00:11:33,257 --> 00:11:34,955
[fast-paced electronic music]
282
00:11:35,085 --> 00:11:37,392
It's an amazing way
of decentralizing
283
00:11:37,522 --> 00:11:38,915
this information.
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00:11:39,046 --> 00:11:40,612
VINAY GUPTA: Decentralizedmeans the computers
285
00:11:40,743 --> 00:11:42,136
are all over the world.
286
00:11:42,266 --> 00:11:44,355
If one of them blows up,another one takes its place,
287
00:11:44,486 --> 00:11:45,574
and you never really notice.
288
00:11:45,705 --> 00:11:47,228
The network continues
to function.
289
00:11:47,358 --> 00:11:49,752
And it's not owned or run bya single organization, kind
290
00:11:49,883 --> 00:11:52,059
of like the internet itself.
291
00:11:52,189 --> 00:11:53,887
But blockchain isn't
really a thing.
292
00:11:54,017 --> 00:11:55,584
Blockchain is a process.
293
00:11:55,715 --> 00:11:57,760
SPIROS MICHALAKIS: If youwanted to reverse this process,
294
00:11:57,891 --> 00:12:00,415
it would be the same as tryingto take every atom of smoke
295
00:12:00,545 --> 00:12:03,940
and try to reverse until itcame back to its original state
296
00:12:04,071 --> 00:12:05,202
and place.
297
00:12:05,333 --> 00:12:07,727
It's very difficult to do.
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00:12:07,857 --> 00:12:09,598
Even with the advent
of quantum computers,
299
00:12:09,729 --> 00:12:11,556
we don't believe that
we can reverse this.
300
00:12:11,687 --> 00:12:13,210
NEWS REPORTER:
--losses on that, which
301
00:12:13,341 --> 00:12:16,997
is key for people who boughtBitcoin near the end of 2013
302
00:12:17,127 --> 00:12:21,566
as it ramped up to a
peak of about $1,200.
303
00:12:21,697 --> 00:12:24,482
It's currently trading
for less than $600,
304
00:12:24,613 --> 00:12:28,051
depending on where
you look to try and do
305
00:12:28,182 --> 00:12:29,400
a Bitcoin transaction now.
306
00:12:29,531 --> 00:12:31,141
But--
307
00:12:31,272 --> 00:12:32,795
NARRATOR: Regardless of thevolatility, Bitcoin's run-up
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00:12:32,926 --> 00:12:35,102
in value catches theattention of technophiles
309
00:12:35,232 --> 00:12:38,105
and crypto fanatics
across the globe.
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00:12:38,235 --> 00:12:39,933
Anyone can use
their own equipment
311
00:12:40,063 --> 00:12:44,024
to produce cryptocurrency ina process known as mining.
312
00:12:44,154 --> 00:12:46,243
It was the beginning
of a digital gold rush.
313
00:12:46,374 --> 00:12:48,942
MAN: --recognizes
all nine cards.
314
00:12:49,072 --> 00:12:50,813
While that's initializing--it takes a while--
315
00:12:50,944 --> 00:12:51,771
I'll take over the rig.
316
00:12:55,165 --> 00:12:56,297
This is the rig here.
317
00:12:56,427 --> 00:13:02,520
This is 9 RX 580,
8 gigabyte models.
318
00:13:02,651 --> 00:13:04,914
SPIROS MICHALAKIS: Miningis using computational power
319
00:13:05,045 --> 00:13:07,787
to try to verify one
of these transactions.
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00:13:07,917 --> 00:13:11,051
MAN: My plan is-- becauseI have more over there.
321
00:13:11,181 --> 00:13:12,748
My plan is to actually--
322
00:13:12,879 --> 00:13:14,750
SPIROS MICHALAKIS: Getting alot of different individuals
323
00:13:14,881 --> 00:13:16,056
out there--
324
00:13:16,186 --> 00:13:18,623
[MEN SPEAKING IN DIFFERENT LANGUAGES]
325
00:13:18,754 --> 00:13:22,018
SPIROS MICHALAKIS: --andgiving them an incentive--
326
00:13:22,149 --> 00:13:23,933
for example, in
the Bitcoin case,
327
00:13:24,064 --> 00:13:26,457
by giving them a
part of a bitcoin.
328
00:13:26,588 --> 00:13:28,372
NARRATOR: It's a race
to validate transactions
329
00:13:28,503 --> 00:13:29,896
on the blockchain
and be rewarded
330
00:13:30,026 --> 00:13:31,811
with freshly-mined bitcoins.
331
00:13:31,941 --> 00:13:33,725
The more computational
power you have,
332
00:13:33,856 --> 00:13:35,553
the better chance
you have to succeed,
333
00:13:35,684 --> 00:13:38,078
which requires a lot ofmachines, and a lot of energy.
334
00:13:38,208 --> 00:13:39,514
NEWS REPORTER:
When we were there,
335
00:13:39,644 --> 00:13:41,516
he said his rigs were
making $8 million
336
00:13:41,646 --> 00:13:43,083
worth of Bitcoin a month.
337
00:13:43,213 --> 00:13:44,301
I'm a smiling guy right now.
338
00:13:44,432 --> 00:13:45,694
It's crazy.
339
00:13:45,825 --> 00:13:46,826
It's the largest mine
in North America,
340
00:13:46,956 --> 00:13:48,262
and most of the
rest of the world.
341
00:13:48,392 --> 00:13:51,352
NEWS REPORTER: Inside,
it's incredibly loud.
342
00:13:51,482 --> 00:13:53,615
My God, how many
machines are there?
343
00:13:53,745 --> 00:13:55,138
[speaking icelandic]
344
00:13:55,269 --> 00:13:56,531
INTERPRETER: There areover 10,000 graphic cards
345
00:13:56,661 --> 00:13:58,141
on this side alone.
346
00:13:58,272 --> 00:13:59,969
More than the world's
biggest supercomputer.
347
00:14:00,100 --> 00:14:02,276
[whirring]
348
00:14:03,277 --> 00:14:05,148
[speaking mandarin]
349
00:14:11,285 --> 00:14:13,026
LAURI LOVE: Satoshi
was genius enough
350
00:14:13,156 --> 00:14:15,593
to bend the rules of the
framing of the question.
351
00:14:15,724 --> 00:14:17,639
How do you actually
make sure that this is
352
00:14:17,769 --> 00:14:19,206
the right transaction history?
353
00:14:19,336 --> 00:14:21,121
And it's introduced
an economic incentive
354
00:14:21,251 --> 00:14:25,212
to keep that consensus, whichunderpins the blockchain.
355
00:14:25,342 --> 00:14:27,127
SPIROS MICHALAKIS: The
users of the blockchain
356
00:14:27,257 --> 00:14:28,868
maintain its integrity--
357
00:14:28,998 --> 00:14:30,347
MAN: I have more cards to come.
358
00:14:30,478 --> 00:14:32,088
SPIROS MICHALAKIS:--instead of having to have
359
00:14:32,219 --> 00:14:33,698
trust in one central authority.
360
00:14:33,829 --> 00:14:36,179
MAN: I got it running
at 30 megahash
361
00:14:36,310 --> 00:14:38,486
across nine cards stable.
362
00:14:38,616 --> 00:14:40,880
SPIROS MICHALAKIS: And that iswhere the cryptographic idea
363
00:14:41,010 --> 00:14:43,795
comes into play.
364
00:14:43,926 --> 00:14:47,408
Cryptography has been somethingthat has been going on
365
00:14:47,538 --> 00:14:49,323
for a very long time.
366
00:14:49,453 --> 00:14:51,629
From the ancient Greeks,
where they would just
367
00:14:51,760 --> 00:14:53,936
shave somebody's head,they would write something
368
00:14:54,067 --> 00:14:56,721
on the top of the head,
let the hair grow,
369
00:14:56,852 --> 00:14:58,549
and then send them
on their merry way.
370
00:14:58,680 --> 00:15:01,291
And on the other side, thereceiver of the message
371
00:15:01,422 --> 00:15:03,946
would know to decrypt themessage by shaving their head.
372
00:15:04,077 --> 00:15:06,383
[dynamic music]
373
00:15:07,994 --> 00:15:09,604
JOHN GILMORE: Cryptographyis at the heart
374
00:15:09,734 --> 00:15:11,519
of a bunch of important things.
375
00:15:11,649 --> 00:15:13,738
It's at the heart
of mathematics.
376
00:15:13,869 --> 00:15:16,219
Many important
questions in mathematics
377
00:15:16,350 --> 00:15:20,441
have related to issues thatcryptography brings up.
378
00:15:20,571 --> 00:15:21,877
Diplomacy.
379
00:15:22,008 --> 00:15:25,011
How do you negotiate
with your enemies?
380
00:15:25,141 --> 00:15:28,666
How do you exchange messageswith your ambassador who is
381
00:15:28,797 --> 00:15:31,017
sitting in a foreign country?
382
00:15:31,147 --> 00:15:33,758
It has a lot to do with
the conduct of war.
383
00:15:33,889 --> 00:15:36,500
The Allies had made some
advances in cryptography
384
00:15:36,631 --> 00:15:37,980
during World War
II that shortened
385
00:15:38,111 --> 00:15:40,417
the war by multiple years.
386
00:15:40,548 --> 00:15:43,246
SPIROS MICHALAKIS: Nowwe've gotten better at this,
387
00:15:43,377 --> 00:15:46,728
but it's still what we call
classical cryptography.
388
00:15:46,858 --> 00:15:50,471
Everything that is encryptedis encrypted in that way.
389
00:15:50,601 --> 00:15:53,343
In the blockchain,
each one of the blocks
390
00:15:53,474 --> 00:15:56,738
is protected using classicalcryptographic protocols.
391
00:15:59,697 --> 00:16:02,396
MARK JEFFREY: With theinvention of the blockchain,
392
00:16:02,526 --> 00:16:04,398
your trust is now in math--
393
00:16:04,528 --> 00:16:08,141
the laws that
underpin the universe.
394
00:16:08,271 --> 00:16:11,492
Blockchain is
basically a tool to rid
395
00:16:11,622 --> 00:16:15,191
the world of a lot ofcorruption and unfair advantage,
396
00:16:15,322 --> 00:16:17,759
and a lot of people arestarting to realize that that's
397
00:16:17,889 --> 00:16:19,500
what this is, and
they're starting
398
00:16:19,630 --> 00:16:20,718
to squawk about it right now.
399
00:16:23,983 --> 00:16:25,593
JAMIE DIMON: I don't
personally understand
400
00:16:25,723 --> 00:16:28,422
the value of somethingthat has no actual value.
401
00:16:28,552 --> 00:16:30,815
You're stupid enough to buyit, you'll pay the price for it
402
00:16:30,946 --> 00:16:32,339
one day.
403
00:16:32,469 --> 00:16:33,601
I've also told peoplethat it can trade $100,000
404
00:16:33,731 --> 00:16:35,646
before it trades to zero.
405
00:16:35,777 --> 00:16:39,128
Tulips bulbs traded for $75,000once, something like that.
406
00:16:39,259 --> 00:16:42,740
In the 17th century,
in Holland, tulips
407
00:16:42,871 --> 00:16:45,047
became so popular
an entire business
408
00:16:45,178 --> 00:16:46,135
could be bought with them.
409
00:16:46,266 --> 00:16:47,180
The entire country.
410
00:16:47,310 --> 00:16:48,746
It was, of course, tulip mania.
411
00:16:48,877 --> 00:16:51,271
So what does Buffett
not like right now?
412
00:16:51,401 --> 00:16:53,055
That would be Bitcoin.
413
00:16:53,186 --> 00:16:55,840
He says that Bitcoin right nowlooks a little bit tulip-like
414
00:16:55,971 --> 00:16:57,190
to him.
415
00:16:57,320 --> 00:16:57,973
I wouldn't be surprised
if it's not around
416
00:16:58,104 --> 00:16:59,540
in 10 or 20 years.
417
00:16:59,670 --> 00:17:01,368
Everybody who's in it saysblockchain is so secure.
418
00:17:01,498 --> 00:17:04,501
They act as if, look, nothing'smore secure than this.
419
00:17:04,632 --> 00:17:07,417
It doesn't serve anysocially useful function.
420
00:17:07,548 --> 00:17:09,506
This market doesn'tproduce even more tulips.
421
00:17:09,637 --> 00:17:11,465
MAN: I haven't seen that
chart since the tulip.
422
00:17:11,595 --> 00:17:15,599
We ought to just go backto what we always have had.
423
00:17:15,730 --> 00:17:17,166
What happened to gold?
424
00:17:17,297 --> 00:17:19,516
I find generally thatpeople that say those things
425
00:17:19,647 --> 00:17:21,823
are people that don't reallyunderstand the technology.
426
00:17:21,953 --> 00:17:24,130
I just don't know how much
homework they've done.
427
00:17:24,260 --> 00:17:25,740
REPORTER: Can you givethem tenths and hundredths
428
00:17:25,870 --> 00:17:27,002
of a bitcoin?
429
00:17:27,133 --> 00:17:27,655
JIM CRAMER: I think
that they're--
430
00:17:27,785 --> 00:17:28,221
You can, right?
431
00:17:28,351 --> 00:17:29,352
Yeah.
432
00:17:29,483 --> 00:17:30,875
What about the
mining of Bitcoin?
433
00:17:31,006 --> 00:17:32,703
They have the picks,and they have the shovels.
434
00:17:32,834 --> 00:17:35,054
REPORTER: Well, they're sellingit to the blockchain as--
435
00:17:35,184 --> 00:17:36,751
the whole blockchain
infrastructure.
436
00:17:36,881 --> 00:17:38,274
REPORTER: It's
ridiculous, is it not?
437
00:17:38,405 --> 00:17:38,970
REPORTER: It's absurd.
438
00:17:39,101 --> 00:17:40,668
REPORTER: Yeah.
439
00:17:40,798 --> 00:17:42,191
MELISSA LEE: You have JamieDimon speaking about Bitcoin
440
00:17:42,322 --> 00:17:44,280
just moments ago, makingsome very harsh comments.
441
00:17:44,411 --> 00:17:45,412
You see the reaction there.
442
00:17:45,542 --> 00:17:46,369
Down by 1.7%.
443
00:17:46,500 --> 00:17:48,154
Here's what he said.
444
00:17:48,284 --> 00:17:49,416
REPORTER: --people like JamieDimon calling Bitcoin a fraud.
445
00:17:49,546 --> 00:17:51,418
MELISSA LEE: --worse
than tulip bulbs.
446
00:17:51,548 --> 00:17:55,291
He would fire any trader tradingBitcoin for being stupid.
447
00:17:55,422 --> 00:17:57,206
And Bitcoin won't end well.
448
00:17:57,337 --> 00:17:58,816
REPORTER: People
like Jamie Dimon,
449
00:17:58,947 --> 00:18:00,818
who say that it's a bubble.
450
00:18:00,949 --> 00:18:04,213
He's starting to see peopletake money out of his bank
451
00:18:04,344 --> 00:18:05,910
and put it into Coinbase.
452
00:18:06,041 --> 00:18:07,651
Of course he's going
to say that stuff.
453
00:18:07,782 --> 00:18:12,221
So you got to look at
who's the messenger.
454
00:18:12,352 --> 00:18:14,267
SPIROS MICHALAKIS: These
individuals probably
455
00:18:14,397 --> 00:18:17,705
have other motives to wantthe blockchain to fail.
456
00:18:17,835 --> 00:18:20,490
It's the same thing, I guess,as having a car company that
457
00:18:20,621 --> 00:18:25,016
has been using gas
say that, ah, hybrids
458
00:18:25,147 --> 00:18:28,281
or totally electriccars, they're just a fad.
459
00:18:28,411 --> 00:18:30,109
LAURA SHIN: It is true
that these technologies
460
00:18:30,239 --> 00:18:31,893
do represent a threat to them.
461
00:18:32,023 --> 00:18:35,549
If they have done the research,then they will pretty quickly
462
00:18:35,679 --> 00:18:37,333
figure out that
these are probably
463
00:18:37,464 --> 00:18:39,422
going to disrupt
their business models.
464
00:18:39,553 --> 00:18:41,468
NARRATOR: He deposits hispaychecks in the bank.
465
00:18:41,598 --> 00:18:44,297
It is added to the amountof his credit in the bank.
466
00:18:44,427 --> 00:18:46,473
BILL TAI: If you think aboutthe function of a bank,
467
00:18:46,603 --> 00:18:51,565
the bank is really just aledger of who owns what when.
468
00:18:51,695 --> 00:18:54,220
It's essentially
cloud storage of money.
469
00:18:54,350 --> 00:18:55,743
That's what a bank is.
470
00:18:55,873 --> 00:18:57,440
You have to put your
money somewhere,
471
00:18:57,571 --> 00:19:00,182
and then the bankhandles moving it around.
472
00:19:00,313 --> 00:19:03,272
And it takes days to figure
that out, in their case.
473
00:19:03,403 --> 00:19:05,318
And if you have
another system--
474
00:19:05,448 --> 00:19:07,494
--if you can
automate all that--
475
00:19:07,624 --> 00:19:09,191
--decentralized--
476
00:19:09,322 --> 00:19:11,411
--so all the assets and allthe people around the assets
477
00:19:11,541 --> 00:19:14,109
already know who ownswhat when whenever it is--
478
00:19:14,240 --> 00:19:17,373
--store their money themselves
and allows them to move
479
00:19:17,504 --> 00:19:18,461
their money instantly--
480
00:19:18,592 --> 00:19:19,984
--all the time--
481
00:19:20,115 --> 00:19:22,161
--in any amount anywherein the world as easily
482
00:19:22,291 --> 00:19:23,423
as transmitting an email--
483
00:19:23,553 --> 00:19:25,555
[crescendo]
484
00:19:25,686 --> 00:19:28,819
--what is the
purpose of a bank?
485
00:19:28,950 --> 00:19:31,692
--why do you need JPMorgan?
486
00:19:31,822 --> 00:19:34,173
Why do you need Jamie Dimon?
487
00:19:34,303 --> 00:19:37,480
The need for them
vanishes from the world.
488
00:19:37,611 --> 00:19:40,396
[birds chirping]
489
00:19:42,833 --> 00:19:44,095
NARRATOR: We're
likely years away
490
00:19:44,226 --> 00:19:45,749
from blockchain-based
technologies
491
00:19:45,880 --> 00:19:49,666
replacing our current financialsystem, if they do at all.
492
00:19:49,797 --> 00:19:51,755
But today, in
nations like Kenya,
493
00:19:51,886 --> 00:19:54,454
cryptocurrencies areproviding financial freedom
494
00:19:54,584 --> 00:19:58,284
and empowering people to createincome in a struggling economy.
495
00:19:58,414 --> 00:20:00,547
MAN [ON RADIO]: --analystssay it will take a long time
496
00:20:00,677 --> 00:20:01,852
for the economy to recover.
497
00:20:06,248 --> 00:20:08,511
EUGENE MUTAI: The first timeI heard of cryptocurrency, it
498
00:20:08,642 --> 00:20:09,773
didn't make sense to me at all.
499
00:20:12,994 --> 00:20:14,300
It didn't make
sense to me, money,
500
00:20:14,430 --> 00:20:16,302
like a form of digital
money, and that's not
501
00:20:16,432 --> 00:20:17,825
controlled by the government.
502
00:20:17,955 --> 00:20:20,131
[girl babbling]
503
00:20:23,047 --> 00:20:26,834
But I started miningcryptocurrencies June, mid-June
504
00:20:26,964 --> 00:20:27,835
last year.
505
00:20:27,965 --> 00:20:30,098
[light atmospheric music]
506
00:20:31,142 --> 00:20:33,362
[whirring]
507
00:20:35,495 --> 00:20:38,324
This cryptocurrency mining rigis just an ordinary computer
508
00:20:38,454 --> 00:20:40,674
with a lot of graphic cards.
509
00:20:40,804 --> 00:20:42,545
It's open air so that--
510
00:20:42,676 --> 00:20:45,374
because it's generating a lotof heat, so that it can be
511
00:20:45,505 --> 00:20:46,593
dispensed easily.
512
00:20:46,723 --> 00:20:49,987
And so just down here--
513
00:20:50,118 --> 00:20:54,427
My mining income is
actually really good.
514
00:20:54,557 --> 00:20:57,256
My current earnings per monthput me at a middle class level.
515
00:21:00,824 --> 00:21:02,739
There's a lot of cryptocurrencybeing moved around
516
00:21:02,870 --> 00:21:04,872
by just Kenyans.
517
00:21:05,002 --> 00:21:06,265
There's some form
of restrictions
518
00:21:06,395 --> 00:21:07,962
from the government,
who still think it's
519
00:21:08,092 --> 00:21:11,357
a Ponzi scheme or a bubble.
520
00:21:11,487 --> 00:21:14,751
But it will bank the unbanked.
521
00:21:14,882 --> 00:21:17,885
It enables the people who didn'thave this financial support
522
00:21:18,015 --> 00:21:21,192
before can finally access it.
523
00:21:21,323 --> 00:21:24,065
Especially in Africa, wherewe're sitting at more than 60%
524
00:21:24,195 --> 00:21:25,022
of unemployment.
525
00:21:27,851 --> 00:21:29,549
I think cryptocurrencies
are here to stay.
526
00:21:33,944 --> 00:21:36,338
Blockchain is one of the biggestbreakthrough technologies
527
00:21:36,469 --> 00:21:38,558
to ever exist to date.
528
00:21:38,688 --> 00:21:41,038
And now we completelystart thinking about money
529
00:21:41,169 --> 00:21:41,996
in a very different way.
530
00:21:47,262 --> 00:21:49,525
NARRATOR: As the popularityof Bitcoin grows,
531
00:21:49,656 --> 00:21:51,788
so does the number ofminers, and soon, there's
532
00:21:51,919 --> 00:21:53,137
an explosion of
cryptocurrencies.
533
00:21:53,268 --> 00:21:54,878
REPORTER: So let me
get this straight.
534
00:21:55,009 --> 00:21:58,926
You took Bitcoin and you justchanged the font to Comic Sans.
535
00:21:59,056 --> 00:22:00,493
And we put a dog on it.
536
00:22:00,623 --> 00:22:02,495
NARRATOR: But Dogecoin
was only the beginning.
537
00:22:02,625 --> 00:22:06,760
Everything from Jesus Coin,TrumpCoin, and UFO Coin.
538
00:22:06,890 --> 00:22:09,589
Of course, porn gets in thegame with Titcoin and even
539
00:22:09,719 --> 00:22:10,981
[bleep] Token.
540
00:22:11,112 --> 00:22:13,941
Most of these are scams
or Bitcoin copycats,
541
00:22:14,071 --> 00:22:16,117
raising the chorus of
naysayers who dismiss
542
00:22:16,247 --> 00:22:17,901
the entire space as a joke.
543
00:22:18,032 --> 00:22:18,859
Bitconnect!
544
00:22:22,863 --> 00:22:24,212
Woo!
545
00:22:24,343 --> 00:22:25,779
NARRATOR: But to agrowing number of people,
546
00:22:25,909 --> 00:22:27,868
blockchain is no joke.
547
00:22:27,998 --> 00:22:29,870
They believe thistechnology has the potential
548
00:22:30,000 --> 00:22:33,961
to upend everything from WallStreet to Silicon Valley.
549
00:22:34,091 --> 00:22:36,137
[light electronic music]
550
00:22:37,573 --> 00:22:39,096
REPORTER: Tim Draper
recently beat out
551
00:22:39,227 --> 00:22:42,752
44 other bidders at the USgovernment's Bitcoin auction
552
00:22:42,883 --> 00:22:44,406
last week.
553
00:22:44,537 --> 00:22:47,366
Are you that much of a believerin the virtual currency?
554
00:22:47,496 --> 00:22:49,019
I am very excited
about Bitcoin
555
00:22:49,150 --> 00:22:50,369
and what it can
do for the world.
556
00:22:55,635 --> 00:23:00,030
We're here at Draper
University Hero City.
557
00:23:00,161 --> 00:23:02,381
There's a university
across the street,
558
00:23:02,511 --> 00:23:06,776
and an incubator andaccelerator here with a network
559
00:23:06,907 --> 00:23:08,474
of venture capitalists.
560
00:23:08,604 --> 00:23:11,433
It's a whole ecosystem.
561
00:23:11,564 --> 00:23:14,871
But blockchain is very specialbecause it's a new thing.
562
00:23:15,002 --> 00:23:17,918
And it allows a whole
new form of creativity
563
00:23:18,048 --> 00:23:20,137
that we can all benefit from.
564
00:23:20,268 --> 00:23:22,488
It's amazing what
the blockchain will
565
00:23:22,618 --> 00:23:25,142
be able to do over
the next 10, 15 years.
566
00:23:25,273 --> 00:23:27,928
Insurance, banking, real estate.
567
00:23:28,058 --> 00:23:30,800
Any of those industriesthat really hasn't caught up
568
00:23:30,931 --> 00:23:34,151
to the new way of operating,
those are all fair game.
569
00:23:34,282 --> 00:23:35,762
Even venture capital.
570
00:23:35,892 --> 00:23:38,286
By having it being
a perfect ledger,
571
00:23:38,417 --> 00:23:40,375
it becomes the accountant.
572
00:23:40,506 --> 00:23:42,159
It becomes the lawyer.
573
00:23:42,290 --> 00:23:44,945
It's like a bureaucrat
that is incorruptible.
574
00:23:45,075 --> 00:23:46,686
BETTINA WARBURG: If
you take nothing else
575
00:23:46,816 --> 00:23:50,211
away from this talk, I actuallywant you to remember that,
576
00:23:50,341 --> 00:23:53,910
while blockchain technologyis relatively new,
577
00:23:54,041 --> 00:23:57,914
it's also a continuation
of a very human story.
578
00:23:58,045 --> 00:23:59,655
TIM DRAPER: We are
going through one
579
00:23:59,786 --> 00:24:02,702
of the greatest transformationsin the history of the world.
580
00:24:02,832 --> 00:24:03,833
Hang on for the ride.
581
00:24:03,964 --> 00:24:05,444
This is going to be awesome.
582
00:24:05,574 --> 00:24:07,228
This is bigger
than the internet.
583
00:24:07,358 --> 00:24:09,273
In my mind, this isbigger than the internet.
584
00:24:09,404 --> 00:24:13,364
We are now entering afurther and radical evolution
585
00:24:13,495 --> 00:24:15,889
of how we interact and trade.
586
00:24:16,019 --> 00:24:18,195
NARRATOR: It took time beforethe finance and technology
587
00:24:18,326 --> 00:24:21,242
sectors saw cryptocurrencyand blockchain as potentially
588
00:24:21,372 --> 00:24:24,419
disruptive, while the USgovernment felt threatened
589
00:24:24,550 --> 00:24:26,639
from the earliest
days of Silk Road,
590
00:24:26,769 --> 00:24:28,902
and maintained an aggressivelydefensive position.
591
00:24:29,032 --> 00:24:31,034
[traffic noise]
592
00:24:32,906 --> 00:24:37,084
STEVEN MNUCHIN: We are veryfocused on cyber currencies.
593
00:24:37,214 --> 00:24:43,090
We want to make sure thatbad people cannot use these
594
00:24:43,220 --> 00:24:45,440
currencies to do bad things.
595
00:24:45,571 --> 00:24:47,877
[ominous music]
596
00:24:48,008 --> 00:24:50,401
MAN: If you canestablish another payment
597
00:24:50,532 --> 00:24:55,972
system via cryptocurrencies,that gives us less control
598
00:24:56,103 --> 00:24:57,844
over putting sanctions
on their economy.
599
00:24:57,974 --> 00:25:00,194
No one can impose
sanctions on Bitcoin.
600
00:25:00,324 --> 00:25:03,414
It allows North Korea a lot ofleeway to move money around,
601
00:25:03,545 --> 00:25:06,374
to collect money, to storemoney to do the things
602
00:25:06,505 --> 00:25:08,332
that Kim Jong-un wants to do.
603
00:25:08,463 --> 00:25:10,509
There's been talk
about Iran doing this.
604
00:25:10,639 --> 00:25:12,728
Obviously, Russia might
start getting involved.
605
00:25:15,514 --> 00:25:17,428
VLADIMIR PUTIN:
[speaking russian]
606
00:25:41,365 --> 00:25:43,890
MAN: It does complicate
the narrative.
607
00:25:44,020 --> 00:25:47,894
And this first step is somethingthat not only New York,
608
00:25:48,024 --> 00:25:49,548
but DC should be
paying attention to.
609
00:26:01,255 --> 00:26:02,691
NARRATOR: In less
stable nations,
610
00:26:02,822 --> 00:26:04,824
cryptocurrencies provide
a more urgent use
611
00:26:04,954 --> 00:26:07,261
as a crisis currency thatcan help to circumvent
612
00:26:07,391 --> 00:26:09,132
broken financial policy.
613
00:26:09,263 --> 00:26:11,004
Venezuela is one such country.
614
00:26:11,134 --> 00:26:14,181
And now to the continuingpolitical and economic crisis
615
00:26:14,311 --> 00:26:15,574
in Venezuela.
616
00:26:15,704 --> 00:26:16,879
REPORTER: With inflation
through the roof,
617
00:26:17,010 --> 00:26:19,665
with jobs, cash, food,
and medicine scarce,
618
00:26:19,795 --> 00:26:23,103
many Venezuelans have lostfaith in their politicians,
619
00:26:23,233 --> 00:26:26,367
and they're increasingly lookinginwards, organizing themselves
620
00:26:26,497 --> 00:26:29,109
in the hope of a better future.
621
00:26:29,239 --> 00:26:32,765
GABRIEL: We have a very activecommunity of Bitcoin here.
622
00:26:32,895 --> 00:26:35,332
It started around 2
and 1/2 years ago.
623
00:26:35,463 --> 00:26:37,987
Many millions ofVenezuelans fled the country
624
00:26:38,118 --> 00:26:39,554
because of economic turmoil.
625
00:26:39,685 --> 00:26:40,729
They were scared.
626
00:26:40,860 --> 00:26:42,818
Because we have
capital controls.
627
00:26:42,949 --> 00:26:44,472
We have hyperinflation.
628
00:26:44,603 --> 00:26:46,517
The prices keep going
up and up and up.
629
00:26:46,648 --> 00:26:48,171
JORGE PEREZ VALERY:
The IMF is predicting
630
00:26:48,302 --> 00:26:52,045
that by the end of this year,Venezuela's inflation rate
631
00:26:52,175 --> 00:26:56,745
could get as high as 13,000%.
632
00:26:56,876 --> 00:26:58,617
LAURI LOVE: Bitcoin says,there's another way.
633
00:26:58,747 --> 00:27:00,662
There's another way.
634
00:27:00,793 --> 00:27:02,882
It's not going to inflatebecause we can't inflate it.
635
00:27:03,012 --> 00:27:05,841
And that gives you
some assurance.
636
00:27:05,972 --> 00:27:07,364
That gives you
incredible freedom.
637
00:27:07,495 --> 00:27:09,279
MAN: [speaking spanish]
638
00:27:10,977 --> 00:27:12,500
NARRATOR: Most cryptocurrencies,including Bitcoin,
639
00:27:12,631 --> 00:27:15,851
are designed with a fixedsupply, and to be deflationary.
640
00:27:15,982 --> 00:27:18,637
But Venezuela's government istaking all possible measures
641
00:27:18,767 --> 00:27:21,552
to prevent further subversionof their economic power
642
00:27:21,683 --> 00:27:23,598
by cracking down on
miners and creating
643
00:27:23,729 --> 00:27:26,470
a cryptocurrency of theirown that they can control.
644
00:27:26,601 --> 00:27:27,907
REPORTER: The
government has a plan
645
00:27:28,037 --> 00:27:30,649
to pull the country out
of a deepening crisis,
646
00:27:30,779 --> 00:27:32,781
and it involves cryptocurrency.
647
00:27:32,912 --> 00:27:36,437
Venezuela launched a newoil-backed digital currency
648
00:27:36,567 --> 00:27:38,134
today.
649
00:27:38,265 --> 00:27:40,963
This Bitcoin-esque virtualcurrency is called the Petro.
650
00:27:41,094 --> 00:27:42,661
LAURI LOVE: Proving
their fears of it
651
00:27:42,791 --> 00:27:44,706
being too radical
and revolutionary,
652
00:27:44,837 --> 00:27:47,535
there's a attempt to put thegenie back in the bottle.
653
00:27:47,666 --> 00:27:51,060
This is also a means toexercise control over it.
654
00:27:51,191 --> 00:27:54,324
GABRIEL: When I found out
about cryptocurrencies,
655
00:27:54,455 --> 00:27:59,199
I could find my
means to live here.
656
00:27:59,329 --> 00:28:04,421
There are so many opportunitiesby doing cryptocurrency.
657
00:28:04,552 --> 00:28:06,380
NARRATOR: Whatever the
fate of cryptocurrencies
658
00:28:06,510 --> 00:28:09,600
and their ability to disruptpolitical and economic power,
659
00:28:09,731 --> 00:28:11,124
governments will
likely fight back
660
00:28:11,254 --> 00:28:14,170
against any attempt toloosen their grip on control.
661
00:28:14,301 --> 00:28:15,737
Governments are
threatened by this.
662
00:28:15,868 --> 00:28:17,521
They're concerned about
criminal activity.
663
00:28:17,652 --> 00:28:19,306
Bad people.
664
00:28:19,436 --> 00:28:21,047
Things like kidnappings beingpaid with ransoms of Bitcoin.
665
00:28:21,177 --> 00:28:22,483
Bad things.
666
00:28:22,613 --> 00:28:24,528
And there is kind of
a long-term threat that
667
00:28:24,659 --> 00:28:26,356
if something like
Bitcoin can exist,
668
00:28:26,487 --> 00:28:29,272
even if they shut this one down,now that proof of concept's out
669
00:28:29,403 --> 00:28:31,666
there, maybe there could beanother one, and another one,
670
00:28:31,797 --> 00:28:34,582
and maybe you can't
put this idea away.
671
00:28:34,713 --> 00:28:38,107
Hackers, they basically hadthis kind of idealistic vision.
672
00:28:38,238 --> 00:28:39,979
NARRATOR: It's hard to
pinpoint exactly where
673
00:28:40,109 --> 00:28:42,285
and when the hacker
movement got started.
674
00:28:42,416 --> 00:28:44,723
Early hackers believed thatinformation and tools should
675
00:28:44,853 --> 00:28:47,900
be free, and they openlyshared their work with others.
676
00:28:48,030 --> 00:28:49,684
NARRATOR: The
widespread proliferation
677
00:28:49,815 --> 00:28:53,166
of open source technologies likecryptocurrency and blockchain
678
00:28:53,296 --> 00:28:56,125
was exactly what hackers hadenvisioned from the beginning.
679
00:28:56,256 --> 00:28:57,910
Hacker movements
like the cypherpunks
680
00:28:58,040 --> 00:28:59,955
were driven by their
love of technology
681
00:29:00,086 --> 00:29:02,305
and their strongly-held
beliefs, from the right
682
00:29:02,436 --> 00:29:05,918
to privacy to the
freedom of information.
683
00:29:06,048 --> 00:29:08,747
JOHN GILMORE: We all thoughtthat learning and teaching
684
00:29:08,877 --> 00:29:11,140
about computer
security was essential
685
00:29:11,271 --> 00:29:13,621
if we were going to have
networked computers.
686
00:29:13,752 --> 00:29:15,188
It was important for privacy.
687
00:29:15,318 --> 00:29:16,711
It was important for society.
688
00:29:16,842 --> 00:29:18,626
MATTHEW GREEN: They said,maybe I could actually
689
00:29:18,757 --> 00:29:20,628
build this kind of
ideal civilization
690
00:29:20,759 --> 00:29:23,239
where cryptography andcomputers can actually make
691
00:29:23,370 --> 00:29:25,241
us more secure than we were.
692
00:29:25,372 --> 00:29:26,808
This movement came
a little bit out
693
00:29:26,939 --> 00:29:29,419
of the political and alittle bit out of the tech.
694
00:29:29,550 --> 00:29:31,857
It was the people
working illegally
695
00:29:31,987 --> 00:29:34,163
in the underground who'vemade most of the advances.
696
00:29:34,294 --> 00:29:36,905
MAN: The liberal arts majorswhose only computer time
697
00:29:37,036 --> 00:29:39,690
available was if they gummedup the locks and snuck
698
00:29:39,821 --> 00:29:42,171
into the building late at nightbecause they weren't allowed
699
00:29:42,302 --> 00:29:43,956
to sign up for this stuff.
700
00:29:44,086 --> 00:29:44,913
STEVE WOZNIAK: I was pretty muchlike the rest of the hackers.
701
00:29:45,044 --> 00:29:46,567
I felt that I was something.
702
00:29:46,697 --> 00:29:47,829
The rest of the world didn'tthink microcomputers were
703
00:29:47,960 --> 00:29:49,265
going to amount to anything.
704
00:29:49,396 --> 00:29:50,701
I just thought I had a
neat one for my house.
705
00:29:50,832 --> 00:29:52,138
I'm going to show others.
706
00:29:52,268 --> 00:29:53,922
I'm going to even help
them build their own.
707
00:29:54,053 --> 00:29:56,316
JOHN GILMORE: What Satoshiwas trying to do was say,
708
00:29:56,446 --> 00:30:00,407
how can we make a currencythat won't be completely run
709
00:30:00,537 --> 00:30:01,974
by the government?
710
00:30:02,104 --> 00:30:04,628
And he tried to do itwith software, with code.
711
00:30:04,759 --> 00:30:07,109
Released that software
for free, and everybody
712
00:30:07,240 --> 00:30:10,634
who makes bitcoins runs aversion of that software now.
713
00:30:10,765 --> 00:30:13,072
NARRATOR: Some argue that thecomputer revolution could not
714
00:30:13,202 --> 00:30:16,727
have happened without
that hacker ethic.
715
00:30:16,858 --> 00:30:18,817
MATTHEW GREEN: But thegovernment, years ago, they
716
00:30:18,947 --> 00:30:21,689
decided that hackers were goingto break into every computer
717
00:30:21,820 --> 00:30:23,212
and launch nuclear missiles.
718
00:30:23,343 --> 00:30:25,345
And so they passed
this incredibly strong,
719
00:30:25,475 --> 00:30:29,349
vague, poorly-defined law calledthe CFAA, the Computer Fraud
720
00:30:29,479 --> 00:30:30,045
and Abuse Act.
721
00:30:33,222 --> 00:30:35,224
ALEX: Tell us about your case.
722
00:30:35,355 --> 00:30:37,792
LAURI LOVE: I'm a
international fugitive,
723
00:30:37,923 --> 00:30:40,012
in the words of the
Department of Justice,
724
00:30:40,142 --> 00:30:43,580
because I'm perceived as beingrepresentative of this attempt
725
00:30:43,711 --> 00:30:46,932
to undermine the authorityof the US government.
726
00:30:47,062 --> 00:30:49,064
REPORTER: Lauri Love,
who has Asperger's, is
727
00:30:49,195 --> 00:30:52,328
accused of stealing huge amountsof data from US agencies,
728
00:30:52,459 --> 00:30:55,201
including the Federal Reserve,the Department of Defense,
729
00:30:55,331 --> 00:30:56,898
NASA, and the FBI.
730
00:30:57,029 --> 00:30:59,074
American authorities
want the 31-year-old
731
00:30:59,205 --> 00:31:02,686
to stand trial in the Statesover charges of cyber hacking.
732
00:31:02,817 --> 00:31:07,039
His lawyers say it could resultin a sentence of up to 99 years
733
00:31:07,169 --> 00:31:08,867
in jail if convicted.
734
00:31:08,997 --> 00:31:12,871
TOR EKELAND: The ComputerFraud Abuse Act, aka the CFAA,
735
00:31:13,001 --> 00:31:16,918
has been called the
worst law in technology.
736
00:31:17,049 --> 00:31:19,529
And the courts are
all over the place.
737
00:31:19,660 --> 00:31:23,055
And it allows private partiesto essentially say, listen,
738
00:31:23,185 --> 00:31:24,665
you violated our
terms of service,
739
00:31:24,795 --> 00:31:26,928
you've signed on to Facebook,you lied about your age,
740
00:31:27,059 --> 00:31:28,451
bang, you've just
committed a felony.
741
00:31:28,582 --> 00:31:30,018
[ominous music]
742
00:31:30,149 --> 00:31:32,586
Aaron Swartz gotprosecuted under the CFAA
743
00:31:32,716 --> 00:31:35,632
for downloading a bunch
of academic articles
744
00:31:35,763 --> 00:31:38,244
out of basically
a closet at MIT.
745
00:31:38,374 --> 00:31:39,680
They went after him real hard.
746
00:31:39,810 --> 00:31:41,377
REPORTER: The charges
could have landed him
747
00:31:41,508 --> 00:31:43,684
in prison for up
to 35 years, along
748
00:31:43,814 --> 00:31:45,251
with a million-dollar fine.
749
00:31:45,381 --> 00:31:48,167
But with prosecutorspressing serious charges,
750
00:31:48,297 --> 00:31:51,344
Swartz hanged himself Fridayat his Brooklyn apartment.
751
00:31:53,389 --> 00:31:55,043
MATTHEW GREEN: The
problem with these laws
752
00:31:55,174 --> 00:31:57,741
is there's a lot ofprosecutorial discretion.
753
00:31:57,872 --> 00:32:00,657
And so if the government wantsto go after somebody like Aaron
754
00:32:00,788 --> 00:32:02,703
Swartz, they can do that.
755
00:32:02,833 --> 00:32:04,879
And sometimes, you see
people being extradited,
756
00:32:05,010 --> 00:32:06,794
put in prison potentiallyfor years and years
757
00:32:06,925 --> 00:32:09,536
for doing something that, if ithappened in the physical world,
758
00:32:09,666 --> 00:32:11,364
we'd probably call
kind of a minor prank.
759
00:32:11,494 --> 00:32:13,235
TOR EKELAND: Lauri's a
very interesting case,
760
00:32:13,366 --> 00:32:14,845
because what he's
alleged to have done
761
00:32:14,976 --> 00:32:16,760
there is participate
in an operation called
762
00:32:16,891 --> 00:32:18,501
Op Last Resort.
763
00:32:18,632 --> 00:32:21,026
So Anonymous hacked the UnitedStates sentencing guidelines
764
00:32:21,156 --> 00:32:24,029
website and replaced thefront page of that website
765
00:32:24,159 --> 00:32:26,553
with a game of Asteroids.
766
00:32:26,683 --> 00:32:30,209
They didn't do any real harm.
767
00:32:30,339 --> 00:32:32,167
What this was is
this was a protest
768
00:32:32,298 --> 00:32:35,823
of what happened to Aaron,and the abuses of the DOJ
769
00:32:35,954 --> 00:32:38,217
in prosecuting computer crimes.
770
00:32:38,347 --> 00:32:41,089
NAOMI COLVIN: When Aaron Swartztragically took his life,
771
00:32:41,220 --> 00:32:44,223
there was a widespread sensethat US judicial system wasn't
772
00:32:44,353 --> 00:32:47,139
working very well for peoplewho are involved in information
773
00:32:47,269 --> 00:32:49,315
activism, or people whoare active on the internet.
774
00:32:49,445 --> 00:32:52,318
NARRATOR: The internet saw therise of decentralized protest
775
00:32:52,448 --> 00:32:55,060
movements, from Occupy
and Anonymous in the US
776
00:32:55,190 --> 00:32:56,975
to the Arab Spring
in the Middle East,
777
00:32:57,105 --> 00:32:58,933
where the internet was
literally turned off
778
00:32:59,064 --> 00:33:00,891
to squash the revolts.
779
00:33:01,022 --> 00:33:03,068
As the internet became
more centralized,
780
00:33:03,198 --> 00:33:06,071
it became easier to disruptthese forms of protest.
781
00:33:06,201 --> 00:33:07,724
But blockchain-based
technologies
782
00:33:07,855 --> 00:33:10,901
represent a new potentialfor decentralized protest
783
00:33:11,032 --> 00:33:12,686
and the freedom of information.
784
00:33:12,816 --> 00:33:14,862
AARON SWARTZ: There's a battlegoing on right now-- a battle
785
00:33:14,993 --> 00:33:16,255
to define everything
that happens
786
00:33:16,385 --> 00:33:18,735
on the internet in terms
of traditional things
787
00:33:18,866 --> 00:33:20,389
that the law understands.
788
00:33:20,520 --> 00:33:22,783
There are a lot of people,a lot of powerful people
789
00:33:22,913 --> 00:33:26,395
who want to clamp
down on the internet.
790
00:33:26,526 --> 00:33:28,876
We can't let that happen.
791
00:33:29,007 --> 00:33:31,618
It's a sort ofdisgusting and sick irony
792
00:33:31,748 --> 00:33:35,056
that for allegedly
being part of a protest
793
00:33:35,187 --> 00:33:38,538
on those kind of issues, Lauri'snow facing exactly the same.
794
00:33:38,668 --> 00:33:40,844
MATTHEW GREEN: Some peoplewho are security researchers
795
00:33:40,975 --> 00:33:42,585
and ethical hackers,
they say, well, I
796
00:33:42,716 --> 00:33:44,500
want to poke at somethingbecause I'm curious.
797
00:33:44,631 --> 00:33:46,937
And then, of course, there'sthe US government side, which
798
00:33:47,068 --> 00:33:49,549
is a combination of, well,you could have done damage,
799
00:33:49,679 --> 00:33:53,683
and, we're really embarrassedthat this was able to happen.
800
00:33:53,814 --> 00:33:57,426
And sometimes, you see
a huge overreaction.
801
00:33:57,557 --> 00:33:59,472
TOR EKELAND: The
Department of Justice
802
00:33:59,602 --> 00:34:04,216
launched a bullshit prosecutionover some young kid,
803
00:34:04,346 --> 00:34:06,566
and the full weight of
the federal government
804
00:34:06,696 --> 00:34:08,089
was brought against him.
805
00:34:08,220 --> 00:34:09,960
And he killed himself
because of it.
806
00:34:10,091 --> 00:34:12,354
That's what should be punished.
807
00:34:12,485 --> 00:34:14,661
But instead, we've
got them trying
808
00:34:14,791 --> 00:34:18,056
to throw somebody in jail for100 years who protested that.
809
00:34:18,186 --> 00:34:19,579
--thank for coming
on the program.
810
00:34:19,709 --> 00:34:21,320
Thanks for having me.
811
00:34:21,450 --> 00:34:23,409
How do you respond, in broadterms, to these accusations?
812
00:34:23,539 --> 00:34:25,759
Well, what I'm hoping is ifthe extradition is refused,
813
00:34:25,889 --> 00:34:27,282
I'll have the
opportunity to respond
814
00:34:27,413 --> 00:34:29,284
in court, which is theway these things are done.
815
00:34:29,415 --> 00:34:30,981
The problem for
me is there's been
816
00:34:31,112 --> 00:34:32,679
no evidence provided
over the three years
817
00:34:32,809 --> 00:34:35,464
that I face these allegations.
818
00:34:35,595 --> 00:34:36,987
INTERVIEWER: Are you a hacker?
819
00:34:37,118 --> 00:34:38,598
LAURI LOVE: Yeah, Idescribe myself as a hacker.
820
00:34:38,728 --> 00:34:40,600
A hacker someone who usestechnology, takes it apart,
821
00:34:40,730 --> 00:34:43,081
and he puts it together
in interesting ways.
822
00:34:43,211 --> 00:34:44,908
And I also work promotingnew technologies,
823
00:34:45,039 --> 00:34:47,520
such as blockchain technologiesthat could create a better
824
00:34:47,650 --> 00:34:48,695
financial system.
825
00:34:48,825 --> 00:34:50,044
TOR EKELAND: I
think you're going
826
00:34:50,175 --> 00:34:53,961
to see government
always trying to control
827
00:34:54,092 --> 00:34:56,442
any kind of
technology that allows
828
00:34:56,572 --> 00:35:03,013
for decentralization, becausethat's a threat to their power.
829
00:35:03,144 --> 00:35:05,494
REPORTER: A judge ruled todaythat he can be extradited
830
00:35:05,625 --> 00:35:07,322
to America to stand trial.
831
00:35:07,453 --> 00:35:10,891
Lauri Love, who's 31 and suffersfrom Asperger's syndrome, now--
832
00:35:11,021 --> 00:35:13,154
LAWYER: --Lauri's caseto the secretary of state
833
00:35:13,285 --> 00:35:16,070
for an order for extradition.
834
00:35:16,201 --> 00:35:18,116
We're extremely disappointed
by that decision.
835
00:35:18,246 --> 00:35:20,901
In fact, most of
the written judgment
836
00:35:21,031 --> 00:35:23,556
is all about the defense case,because the prosecution didn't
837
00:35:23,686 --> 00:35:25,079
actually call any evidence.
838
00:35:25,210 --> 00:35:27,951
It is my belief
that it is not fair
839
00:35:28,082 --> 00:35:31,346
or just that our boy, who'sgot mental health issues,
840
00:35:31,477 --> 00:35:34,088
can be taken away from hisfamily or his support network.
841
00:35:34,219 --> 00:35:35,872
Although he's lost
today, this isn't
842
00:35:36,003 --> 00:35:38,614
the end of the legal
road for Lauri Love.
843
00:35:38,745 --> 00:35:41,530
He still has the right togo to the court of appeal
844
00:35:41,661 --> 00:35:45,273
to seek to have this
decision overturned.
845
00:35:45,404 --> 00:35:47,101
NARRATOR: While Lauri
awaited a decision,
846
00:35:47,232 --> 00:35:49,538
blockchain technology
was developing fast,
847
00:35:49,669 --> 00:35:52,237
and a new crypto assetexploded onto the scene--
848
00:35:52,367 --> 00:35:53,586
Ethereum.
849
00:35:53,716 --> 00:35:56,371
You are a platform
that would be best--
850
00:35:56,502 --> 00:35:57,981
Like a decentralized
worldwide web.
851
00:35:58,112 --> 00:35:58,939
REPORTER: Is there any--
852
00:35:59,069 --> 00:36:00,288
OK, sorry.
853
00:36:00,419 --> 00:36:02,029
My brain is smoking right now.
854
00:36:02,160 --> 00:36:04,510
Give us a real-worldexplanation for what that means.
855
00:36:12,605 --> 00:36:14,563
JOSEPH LUBIN: Bitcoin
was a great application,
856
00:36:14,694 --> 00:36:17,087
and we were all very
excited about that.
857
00:36:17,218 --> 00:36:21,222
We saw how powerful that
first use case-- money--
858
00:36:21,353 --> 00:36:23,006
could be.
859
00:36:23,137 --> 00:36:25,705
Basically of the people, by thepeople, for the people money.
860
00:36:25,835 --> 00:36:27,968
But the Bitcoin blockchainwas really just designed
861
00:36:28,098 --> 00:36:29,404
for that one use case.
862
00:36:29,535 --> 00:36:31,798
The entire Bitcoinnetwork is in the service
863
00:36:31,928 --> 00:36:33,234
of this one application.
864
00:36:33,365 --> 00:36:35,671
So Vitalik Buterin
wrote some white papers,
865
00:36:35,802 --> 00:36:39,762
and his key insight was,instead of putting a new pocket
866
00:36:39,893 --> 00:36:43,549
calculator button at everynode of a peer-to-peer network,
867
00:36:43,679 --> 00:36:46,943
why not put a full
computer there?
868
00:36:47,074 --> 00:36:49,816
And thus, Ethereum was born.
869
00:36:49,946 --> 00:36:51,731
Ethereum basically
asked a simple question,
870
00:36:51,861 --> 00:36:55,256
which is, why can't we putprograms into the blockchain?
871
00:36:55,387 --> 00:36:56,736
The blockchain can store data.
872
00:36:56,866 --> 00:36:57,998
It can store transactions.
873
00:36:58,128 --> 00:36:59,347
Why shouldn't it store programs?
874
00:36:59,478 --> 00:37:01,219
And if we put a program
into the blockchain,
875
00:37:01,349 --> 00:37:03,264
why shouldn't it run atthe same level of security
876
00:37:03,395 --> 00:37:05,005
as a bitcoin transaction?
877
00:37:05,135 --> 00:37:07,442
LAURA SHIN: Ethereum is whatthey call a smart contracts
878
00:37:07,573 --> 00:37:13,318
platform, which enables you tocreate more programmable money.
879
00:37:13,448 --> 00:37:16,059
Smart contracts can disruptreal estate transactions,
880
00:37:16,190 --> 00:37:18,888
the legal industry,
things in insurance.
881
00:37:19,019 --> 00:37:20,847
It's just much more
complex processes
882
00:37:20,977 --> 00:37:22,979
that you can run on
Ethereum over Bitcoin.
883
00:37:23,110 --> 00:37:25,808
Essentially, the technologyis a trust machine.
884
00:37:25,939 --> 00:37:28,158
Everybody using it can trust it.
885
00:37:28,289 --> 00:37:30,073
And so you can start
building systems
886
00:37:30,204 --> 00:37:32,902
that are different
from the old systems.
887
00:37:33,033 --> 00:37:34,991
BILL TAI: Civilization
as we know it today is
888
00:37:35,122 --> 00:37:38,299
a blip on a very long timeline.
889
00:37:38,430 --> 00:37:41,824
Technology is a
series of waves that
890
00:37:41,955 --> 00:37:45,741
builds one upon the other withaccelerating speed and size
891
00:37:45,872 --> 00:37:47,221
and depth.
892
00:37:47,352 --> 00:37:49,179
You used to make computersout of things that
893
00:37:49,310 --> 00:37:51,051
look like little light bulbs.
894
00:37:51,181 --> 00:37:54,402
And that wave was
totally changed
895
00:37:54,533 --> 00:37:57,275
when it became littlegranular pieces that were
896
00:37:57,405 --> 00:37:59,015
stuck on a piece of silicon.
897
00:37:59,146 --> 00:38:01,409
That created the computer wave.
898
00:38:01,540 --> 00:38:03,629
And then we had
the phone system,
899
00:38:03,759 --> 00:38:06,109
a very long physical wire.
900
00:38:06,240 --> 00:38:08,547
When people figured out thatyou'd take the conversation
901
00:38:08,677 --> 00:38:11,506
and chop it up into littlebits, deconstruct it
902
00:38:11,637 --> 00:38:13,987
to its basic element, andthen flow those things
903
00:38:14,117 --> 00:38:17,425
over the lines and
reconstruct them,
904
00:38:17,556 --> 00:38:20,036
they basically created thefoundation for the rule set
905
00:38:20,167 --> 00:38:21,342
that became the internet.
906
00:38:21,473 --> 00:38:24,432
So you could do everything.
907
00:38:24,563 --> 00:38:27,740
Blockchain is the third
wave of our lifetime
908
00:38:27,870 --> 00:38:32,658
that is a totalreconstruction of behavior.
909
00:38:32,788 --> 00:38:38,011
Identity, assets, governance.
910
00:38:38,141 --> 00:38:39,099
Those are going to change.
911
00:38:41,797 --> 00:38:43,233
NARRATOR: Blockchain's
true believers
912
00:38:43,364 --> 00:38:46,367
envision an entirely newepoch in human civilization.
913
00:38:46,498 --> 00:38:49,370
Critics see deluded evangelismin the latest passing techno
914
00:38:49,501 --> 00:38:51,459
fad, while some are
just hoping to strike
915
00:38:51,590 --> 00:38:53,722
it rich in the frenzy
of crypto mania.
916
00:38:53,853 --> 00:38:56,072
But whatever one thinks
of this technology,
917
00:38:56,203 --> 00:38:57,987
brilliant minds
are hard at work,
918
00:38:58,118 --> 00:39:00,381
inspired by blockchain's
possibilities
919
00:39:00,512 --> 00:39:02,252
and how it can be used
to address the world's
920
00:39:02,383 --> 00:39:04,559
most pressing problems.
921
00:39:04,690 --> 00:39:07,736
BILL TAI: If you think ofthe power systems today,
922
00:39:07,867 --> 00:39:10,043
think about what happenedwith Hurricane Irma blowing
923
00:39:10,173 --> 00:39:10,957
through the Caribbean.
924
00:39:11,087 --> 00:39:13,176
[wind howling]
925
00:39:15,004 --> 00:39:18,138
Now you've got the nationstate of Puerto Rico, millions
926
00:39:18,268 --> 00:39:21,663
of people that don't havepower for four to six months.
927
00:39:21,794 --> 00:39:24,492
NARRATOR: The situation inPuerto Rico isn't unique.
928
00:39:24,623 --> 00:39:26,364
The majority of the
world's power grids
929
00:39:26,494 --> 00:39:29,323
are centralized, and remainvulnerable to everything
930
00:39:29,454 --> 00:39:32,805
from bad weather
to cyber attacks.
931
00:39:32,935 --> 00:39:34,720
DR. PETER LILIENTHAL:
We're in this transition
932
00:39:34,850 --> 00:39:37,853
from the old world
of centralized power
933
00:39:37,984 --> 00:39:41,683
based on fossil fuels
with high emissions
934
00:39:41,814 --> 00:39:45,165
to a future world of
clean distributed power.
935
00:39:45,295 --> 00:39:47,385
And the question is,
how do we get there?
936
00:39:47,515 --> 00:39:48,908
A microgrid.
937
00:39:49,038 --> 00:39:50,910
And my definition ofmicrogrid is really simple.
938
00:39:51,040 --> 00:39:52,738
It's any system that
can stand on its own.
939
00:39:57,699 --> 00:40:02,138
NARENDRA MODI: As the developingworld leaps billions of people
940
00:40:02,269 --> 00:40:05,838
into prosperity, the
world must turn to sun
941
00:40:05,968 --> 00:40:06,839
to power the future.
942
00:40:11,017 --> 00:40:12,845
SCOTT KESSLER: There's
a really large interest
943
00:40:12,975 --> 00:40:16,588
in microgrids as a way toelectrify the developing world.
944
00:40:16,718 --> 00:40:18,720
So rather than
install what would
945
00:40:18,851 --> 00:40:22,507
be the traditional largeinfrastructure that connects
946
00:40:22,637 --> 00:40:24,944
everyone, like the waythe US and other countries
947
00:40:25,074 --> 00:40:28,121
electrified, you can start justby electrifying certain areas
948
00:40:28,251 --> 00:40:29,514
in isolation.
949
00:40:29,644 --> 00:40:32,125
These are sort of little
grids, microgrids.
950
00:40:32,255 --> 00:40:34,736
And what you need there issome element of control.
951
00:40:34,867 --> 00:40:36,346
There has to be
something there that's
952
00:40:36,477 --> 00:40:38,610
balancing the amount
of energy you have
953
00:40:38,740 --> 00:40:41,526
and the amount of energy thatpeople are trying to consume.
954
00:40:41,656 --> 00:40:45,007
What we can do is take
control algorithms
955
00:40:45,138 --> 00:40:47,662
and push them out
into the blockchain.
956
00:40:47,793 --> 00:40:49,534
Basically it becomes
plug-and-play,
957
00:40:49,664 --> 00:40:51,971
and as someone wants to jointhe microgrid, all they need
958
00:40:52,101 --> 00:40:54,495
is one of these little hardwarenodes, and they're good to go.
959
00:41:00,458 --> 00:41:03,939
Our first project's calledthe Brooklyn Microgrid.
960
00:41:04,070 --> 00:41:06,855
It was an attempt
to take what was
961
00:41:06,986 --> 00:41:09,379
until then theory, somethingwe'd put in white papers
962
00:41:09,510 --> 00:41:11,991
and PowerPoints, andactually have a real project
963
00:41:12,121 --> 00:41:12,818
we can point towards.
964
00:41:15,298 --> 00:41:16,735
SASHA SANTIAGO: The
Brooklyn Microgrid
965
00:41:16,865 --> 00:41:19,172
is in the middle of
Gowanus and Park Slope.
966
00:41:19,302 --> 00:41:22,480
This is perfect for a
community solar setting,
967
00:41:22,610 --> 00:41:24,177
so people on both
sides of the pond
968
00:41:24,307 --> 00:41:26,962
can participate in apeer-to-peer market here.
969
00:41:27,093 --> 00:41:29,095
REPORTER: The Brooklyn
Microgrid project,
970
00:41:29,225 --> 00:41:32,185
a small power grid made up ofhouses on President Street.
971
00:41:32,315 --> 00:41:34,579
It's using blockchain,the underlying technology
972
00:41:34,709 --> 00:41:37,756
of cryptocurrency like Bitcoin,to decentralize and share
973
00:41:37,886 --> 00:41:38,931
electricity.
974
00:41:39,061 --> 00:41:40,323
SASHA SANTIAGO: So
right now, we're
975
00:41:40,454 --> 00:41:42,674
testing our hardware
in about 60 houses.
976
00:41:42,804 --> 00:41:45,851
So these are basically
the small meter box.
977
00:41:45,981 --> 00:41:48,070
Our technology is
using blockchain
978
00:41:48,201 --> 00:41:51,160
to count the electrons that isbeing put back onto the grid.
979
00:41:51,291 --> 00:41:53,989
And we collectively pooleveryone's green energy source,
980
00:41:54,120 --> 00:41:55,382
and we put it on
a ledger, and let
981
00:41:55,513 --> 00:41:57,166
everyone know in
the communities,
982
00:41:57,297 --> 00:41:59,386
guess what, this is the amountof energy that's been produced
983
00:41:59,517 --> 00:42:01,127
in your neighborhood.
984
00:42:01,257 --> 00:42:03,825
And if you want to buy energythat's local, that's green,
985
00:42:03,956 --> 00:42:06,915
why not buy it from
your neighbors?
986
00:42:07,046 --> 00:42:10,571
BILL TAI: Blockchain allowsthe economic incentive
987
00:42:10,702 --> 00:42:13,748
for every person that's
got space on the roof
988
00:42:13,879 --> 00:42:15,663
to stick a little solar
generator on there,
989
00:42:15,794 --> 00:42:18,448
or something else, and
interconnect, and be
990
00:42:18,579 --> 00:42:21,756
a supplier in a marketplace.
991
00:42:21,887 --> 00:42:25,717
A peer-to-peer energy gridwhere all of the elements
992
00:42:25,847 --> 00:42:28,110
were interconnected, and
you'd have resiliency.
993
00:42:28,241 --> 00:42:30,591
And the next hurricane thatblows through, part of the grid
994
00:42:30,722 --> 00:42:33,202
might be gone, but you'd
still be up and running.
995
00:42:33,333 --> 00:42:35,727
NICK BEGLINGER: Even though I'ma climate guy for the last 10
996
00:42:35,857 --> 00:42:37,990
years, I kept on reading
about blockchain.
997
00:42:38,120 --> 00:42:41,820
And we have quickly found thatit's not one particular area
998
00:42:41,950 --> 00:42:45,824
that blockchain could reallyhelp implementing the Paris
999
00:42:45,954 --> 00:42:47,565
Agreement.
1000
00:42:47,695 --> 00:42:49,958
But really, that there's a wholeplethora of different topics
1001
00:42:50,089 --> 00:42:53,440
one can and should go into.
1002
00:42:53,571 --> 00:42:54,876
SCOTT KESSLER:
Blockchain is really
1003
00:42:55,007 --> 00:42:57,400
the perfect tool for
the distributed energy
1004
00:42:57,531 --> 00:42:58,576
future we're moving towards.
1005
00:43:01,230 --> 00:43:03,581
MATTHEW GREEN: But
there is a huge problem.
1006
00:43:03,711 --> 00:43:06,758
Bitcoin is using morepower than 158 countries,
1007
00:43:06,888 --> 00:43:09,543
which is not a good thing forcurrency network to be doing.
1008
00:43:09,674 --> 00:43:12,111
But it doesn't mean that thisis the future of cryptocurrency.
1009
00:43:12,241 --> 00:43:14,679
So I think the way weshould look at those things
1010
00:43:14,809 --> 00:43:18,465
is, when you give engineersa simple problem to solve,
1011
00:43:18,596 --> 00:43:22,251
or a straightforward problemto solve, they will solve it.
1012
00:43:22,382 --> 00:43:24,297
SCOTT KESSLER:
That is Dare Henry,
1013
00:43:24,427 --> 00:43:29,084
and it's meant as a form ofcombining heat and computation.
1014
00:43:29,215 --> 00:43:32,522
So when you're running
processes on a computer,
1015
00:43:32,653 --> 00:43:34,524
usually, we try to
remove that heat,
1016
00:43:34,655 --> 00:43:36,962
whether it's through a fanor with some centralized air
1017
00:43:37,092 --> 00:43:38,093
conditioners.
1018
00:43:38,224 --> 00:43:39,747
Heat's usually a bad thing.
1019
00:43:39,878 --> 00:43:41,401
But if you flip
that on its head,
1020
00:43:41,531 --> 00:43:44,099
and you try to run thecomputer as hot as possible,
1021
00:43:44,230 --> 00:43:45,971
and then you take
that heat and use it
1022
00:43:46,101 --> 00:43:48,190
towards space heating
and water heating,
1023
00:43:48,321 --> 00:43:50,149
we can actually increase
the productivity
1024
00:43:50,279 --> 00:43:51,716
of our computation.
1025
00:43:51,846 --> 00:43:53,848
I'm a firm believer thatthe efficiency of the system
1026
00:43:53,979 --> 00:43:55,110
is only going to get better.
1027
00:43:55,241 --> 00:43:57,112
Right now, it's
horribly inefficient.
1028
00:43:57,243 --> 00:43:59,332
I think the amount of
energy being consumed
1029
00:43:59,462 --> 00:44:02,030
by these computers
just to mine Bitcoin
1030
00:44:02,161 --> 00:44:05,730
is not a sustainable
model moving forward.
1031
00:44:05,860 --> 00:44:09,908
I don't think what we have todayis where we're going to land.
1032
00:44:10,038 --> 00:44:11,431
NARRATOR: Energy
and climate are not
1033
00:44:11,561 --> 00:44:13,433
the only real-world
issues being examined
1034
00:44:13,563 --> 00:44:15,827
with blockchain-based
technologies.
1035
00:44:15,957 --> 00:44:18,351
One of the biggest problemsfacing the average citizen
1036
00:44:18,481 --> 00:44:22,616
in the digital age is privacyand security, which at its root
1037
00:44:22,747 --> 00:44:24,270
is an issue of identity.
1038
00:44:24,400 --> 00:44:26,838
Here too, there are innovatorshoping that blockchain
1039
00:44:26,968 --> 00:44:29,405
will provide solutions.
1040
00:44:29,536 --> 00:44:30,798
[chatter]
1041
00:44:32,365 --> 00:44:33,845
MICHAEL SENA: Today,
reputation and identity
1042
00:44:33,975 --> 00:44:36,891
is sort of bestowed uponpeople by a few main providers,
1043
00:44:37,022 --> 00:44:38,414
so Equifax being one.
1044
00:44:38,545 --> 00:44:41,896
MORGAN WRIGHT: Look, thisis the nuclear explosion
1045
00:44:42,027 --> 00:44:43,681
of identity theft opportunity.
1046
00:44:43,811 --> 00:44:47,510
Look, they've got names, date ofbirth, social security numbers,
1047
00:44:47,641 --> 00:44:48,598
addresses.
1048
00:44:48,729 --> 00:44:50,209
A lot of damage can be done.
1049
00:44:50,339 --> 00:44:53,734
More than 21 million Americanshad personal information
1050
00:44:53,865 --> 00:44:56,737
stolen from government
files in a data breach
1051
00:44:56,868 --> 00:44:58,957
that was six times as largeas originally disclosed.
1052
00:44:59,087 --> 00:45:00,349
--big story.
1053
00:45:00,480 --> 00:45:02,351
Potentially tens of
millions of Americans
1054
00:45:02,482 --> 00:45:05,006
are at serious risk
of identity theft
1055
00:45:05,137 --> 00:45:08,836
again after this country'ssecond-largest health insurance
1056
00:45:08,967 --> 00:45:11,752
company, Anthem Insurance,got hit this time
1057
00:45:11,883 --> 00:45:13,841
by a massive electronic attack.
1058
00:45:13,972 --> 00:45:16,235
MAN: How does this continueto happen at, arguably,
1059
00:45:16,365 --> 00:45:17,758
the companies that
should be thinking
1060
00:45:17,889 --> 00:45:19,455
about this kind of
problem the most?
1061
00:45:19,586 --> 00:45:22,197
MICHAEL SENA: They have provenunable to securely protect
1062
00:45:22,328 --> 00:45:23,459
your data.
1063
00:45:23,590 --> 00:45:25,113
So all of your data
is being stored
1064
00:45:25,244 --> 00:45:27,507
in one central place that isinsecure and easy to hack.
1065
00:45:27,637 --> 00:45:29,422
Your identity is now
lost on the internet
1066
00:45:29,552 --> 00:45:32,555
amongst the millions of others.
1067
00:45:32,686 --> 00:45:35,036
Our system actually
turns that on its head.
1068
00:45:35,167 --> 00:45:38,518
uPort is a self-sovereignidentity and user-centric data
1069
00:45:38,648 --> 00:45:40,215
platform.
1070
00:45:40,346 --> 00:45:43,523
What that actually means isthat you control your data.
1071
00:45:43,653 --> 00:45:44,829
No one else.
1072
00:45:44,959 --> 00:45:46,787
Basically, identity
without middleman.
1073
00:45:46,918 --> 00:45:50,530
And so I as a user can justregister my own identity
1074
00:45:50,660 --> 00:45:51,879
and directly control it.
1075
00:45:52,010 --> 00:45:54,142
NARRATOR: With our
personal data exposed--
1076
00:45:54,273 --> 00:45:56,797
and in some cases, beingsold to the highest bidder--
1077
00:45:56,928 --> 00:45:59,757
protecting our identity andeverything that comes with it
1078
00:45:59,887 --> 00:46:01,628
is more urgent than ever.
1079
00:46:01,759 --> 00:46:02,890
SEN.
1080
00:46:03,021 --> 00:46:04,457
DICK DURBIN: Mr.
Zuckerberg, would you
1081
00:46:04,587 --> 00:46:05,850
be comfortable sharing withus the name of the hotel
1082
00:46:05,980 --> 00:46:07,634
you stayed in last night?
1083
00:46:07,765 --> 00:46:08,417
Um.
1084
00:46:08,548 --> 00:46:09,984
[nervous chuckle]
1085
00:46:12,073 --> 00:46:13,771
Uh, no.
1086
00:46:13,901 --> 00:46:15,903
[chuckling]
1087
00:46:16,034 --> 00:46:17,470
SEN.
1088
00:46:17,600 --> 00:46:18,906
DICK DURBIN: If you'vemessaged anybody this week,
1089
00:46:19,037 --> 00:46:20,995
would you share with us
the names of the people
1090
00:46:21,126 --> 00:46:22,997
you've messaged?
1091
00:46:23,128 --> 00:46:24,694
Senator, no, I
would probably not
1092
00:46:24,825 --> 00:46:26,044
choose to do that publicly here.
1093
00:46:26,174 --> 00:46:27,785
SEN.
1094
00:46:27,915 --> 00:46:30,222
DICK DURBIN: I think that maybe what this is all about.
1095
00:46:30,352 --> 00:46:33,051
Your right to privacy,
the limits of your right
1096
00:46:33,181 --> 00:46:37,533
to privacy, and how much yougive away in modern America
1097
00:46:37,664 --> 00:46:39,492
in the name of, quote,
"connecting people
1098
00:46:39,622 --> 00:46:41,450
around the world."
1099
00:46:41,581 --> 00:46:43,061
NARRATOR: While
blockchain companies
1100
00:46:43,191 --> 00:46:46,151
attempt to address the issuesof identity and privacy,
1101
00:46:46,281 --> 00:46:48,414
the global refugee
crisis has prompted
1102
00:46:48,544 --> 00:46:50,285
some of the largest
and most powerful
1103
00:46:50,416 --> 00:46:53,419
humanitarian aid organizationsto pursue solutions
1104
00:46:53,549 --> 00:46:54,463
with new technology.
1105
00:47:03,385 --> 00:47:05,518
CHRIS FABIAN: I'm Chris Fabian.
1106
00:47:05,648 --> 00:47:09,435
I run a small team in UNICEFcalled UNICEF Ventures.
1107
00:47:09,565 --> 00:47:12,264
UNICEF is a huge 12,000-personorganization that advocates
1108
00:47:12,394 --> 00:47:14,701
for and pushes for the rightsof the world's most vulnerable
1109
00:47:14,832 --> 00:47:16,181
children.
1110
00:47:16,311 --> 00:47:20,576
And our team is a tiny
startup within that.
1111
00:47:20,707 --> 00:47:22,883
We've been working on
how we build up identity
1112
00:47:23,014 --> 00:47:25,973
in places for people who
don't have an identity.
1113
00:47:26,104 --> 00:47:27,975
One of the things
that we're testing now
1114
00:47:28,106 --> 00:47:30,891
is whether or not
we can use tokens
1115
00:47:31,022 --> 00:47:33,676
to provide some de facto
identity to refugees
1116
00:47:33,807 --> 00:47:35,722
or other unbanked people.
1117
00:47:35,853 --> 00:47:37,942
We're starting off with afew small tests in Ireland,
1118
00:47:38,072 --> 00:47:40,466
and hopefully, we're then goingto be testing that same token
1119
00:47:40,596 --> 00:47:41,989
in Lebanon and in Jordan.
1120
00:47:42,120 --> 00:47:44,992
[atmospheric music]
1121
00:47:45,123 --> 00:47:48,213
There are 55 million kids whoare on the move because of war
1122
00:47:48,343 --> 00:47:49,867
and violence, and
those kids don't
1123
00:47:49,997 --> 00:47:52,391
have a sovereign governmentto issue an identity card.
1124
00:47:52,521 --> 00:47:53,871
So how do we make
sure that they're
1125
00:47:54,001 --> 00:47:56,395
part of a global ecosystem,a global economy?
1126
00:47:56,525 --> 00:47:58,876
And you can't do thatwith old traditional ways.
1127
00:47:59,006 --> 00:48:00,616
You could imagine
a scenario where
1128
00:48:00,747 --> 00:48:02,880
you have somebody who's traveledthrough Europe as a refugee,
1129
00:48:03,010 --> 00:48:05,534
and they started in Syria,and they ended up in Ireland.
1130
00:48:05,665 --> 00:48:07,145
If they're a teenager,
they've probably
1131
00:48:07,275 --> 00:48:09,364
gone through five
paper identifications
1132
00:48:09,495 --> 00:48:11,149
at each country.
1133
00:48:11,279 --> 00:48:12,977
But if they had a token thatcould inscribe each time they
1134
00:48:13,107 --> 00:48:15,109
went through a registration,like, hey, I did this,
1135
00:48:15,240 --> 00:48:17,807
I was there, then you wouldn'tneed to necessarily issue
1136
00:48:17,938 --> 00:48:20,027
a new ID each moment.
1137
00:48:20,158 --> 00:48:23,378
You have one number thatlinks you to your identity.
1138
00:48:23,509 --> 00:48:25,119
This shows that
they had a history.
1139
00:48:25,250 --> 00:48:27,774
And you might then be morelikely to give them a job.
1140
00:48:27,905 --> 00:48:30,081
You know this person didn'tjust pop up out of nowhere.
1141
00:48:30,211 --> 00:48:33,519
And so for us, the token
is an electronic version
1142
00:48:33,649 --> 00:48:35,347
of that existence trail.
1143
00:48:35,477 --> 00:48:37,479
Being able to count
something that we know
1144
00:48:37,610 --> 00:48:38,959
is happening, being
able to count it
1145
00:48:39,090 --> 00:48:40,482
in an authentic
and auditable way,
1146
00:48:40,613 --> 00:48:41,788
and be able to do that publicly.
1147
00:48:44,878 --> 00:48:45,748
It's an accounting tool.
1148
00:48:45,879 --> 00:48:47,533
It's a ledger.
1149
00:48:47,663 --> 00:48:50,188
But if we can reduce the painpoints on the poorest people,
1150
00:48:50,318 --> 00:48:53,191
we give them a little bitmore time in their life.
1151
00:48:53,321 --> 00:48:55,236
And time is the most valuablething any of us have.
1152
00:49:10,817 --> 00:49:12,558
HOUMAN HADDAD: My
name is Houman Haddad,
1153
00:49:12,688 --> 00:49:16,388
and I work for the UnitedNations World Food Program.
1154
00:49:16,518 --> 00:49:18,868
The World Food Program
is the world's largest
1155
00:49:18,999 --> 00:49:23,656
humanitarian organization, andits mission is to end hunger.
1156
00:49:23,786 --> 00:49:26,311
We're in the Zaatari
refugee camp,
1157
00:49:26,441 --> 00:49:29,009
which hosts 75,000
Syrian refugees who have
1158
00:49:29,140 --> 00:49:32,230
fled due to the conflict there.
1159
00:49:32,360 --> 00:49:35,233
Currently, we're in one of thesupermarkets that essentially
1160
00:49:35,363 --> 00:49:38,497
provides groceries tothe people who live here.
1161
00:49:38,627 --> 00:49:41,543
What is special about what isgoing on in this supermarket
1162
00:49:41,674 --> 00:49:44,068
is that all thetransactions are actually
1163
00:49:44,198 --> 00:49:47,332
authorized and recorded
on a blockchain network.
1164
00:49:47,462 --> 00:49:50,161
It is through a projectcalled Building Blocks, which
1165
00:49:50,291 --> 00:49:52,250
is WFP's implementation
of blockchain
1166
00:49:52,380 --> 00:49:55,122
technology towards
humanitarian assistance.
1167
00:49:55,253 --> 00:49:57,385
[light instrumental music]
1168
00:49:59,909 --> 00:50:02,086
For the most part, this
is a normal supermarket.
1169
00:50:02,216 --> 00:50:03,609
You walk in.
1170
00:50:03,739 --> 00:50:05,654
There is the usual groceryitems that you expect.
1171
00:50:05,785 --> 00:50:08,309
You pick them up, you go tothe cash, they are scanned.
1172
00:50:08,440 --> 00:50:10,311
But at the time that
you want to pay,
1173
00:50:10,442 --> 00:50:12,879
instead of paying with
a card or with cash,
1174
00:50:13,010 --> 00:50:15,099
you pay with your eyes.
1175
00:50:15,229 --> 00:50:19,407
That returns a special code, andyour entitlements on Building
1176
00:50:19,538 --> 00:50:21,540
Blocks are tied to that code.
1177
00:50:21,670 --> 00:50:23,933
So without having anyphysical device or a need
1178
00:50:24,064 --> 00:50:26,284
to memorize a password,
the people we serve
1179
00:50:26,414 --> 00:50:31,158
can efficiently and effectivelymake their purchases.
1180
00:50:31,289 --> 00:50:32,681
What we've done
with Building Block
1181
00:50:32,812 --> 00:50:35,554
is essentially taking allthis accounting portion
1182
00:50:35,684 --> 00:50:37,295
and put it on blockchain.
1183
00:50:37,425 --> 00:50:39,601
And because we're authorizingevery transaction ourselves,
1184
00:50:39,732 --> 00:50:42,082
we essentially have areal-time record of everything
1185
00:50:42,213 --> 00:50:44,302
that happens, so
we're not as reliant
1186
00:50:44,432 --> 00:50:46,565
on third-party service
providers, such as banks
1187
00:50:46,695 --> 00:50:49,524
and mobile money companies.
1188
00:50:49,655 --> 00:50:51,787
We believe blockchain
has a lot of potential
1189
00:50:51,918 --> 00:50:54,268
to help WFP better do its work.
1190
00:50:54,399 --> 00:50:57,097
Some of the ideas are
not fully developed yet,
1191
00:50:57,228 --> 00:50:58,925
but we have just
started our journey.
1192
00:50:59,056 --> 00:51:02,015
We are doing a lot ofthings for the first time.
1193
00:51:02,146 --> 00:51:04,539
Everything is very
new and exciting.
1194
00:51:04,670 --> 00:51:07,281
And we do want to move
forward with blockchain.
1195
00:51:10,415 --> 00:51:12,025
NARRATOR: One area
of global culture
1196
00:51:12,156 --> 00:51:14,462
that was completely upendedby the arrival of the internet
1197
00:51:14,593 --> 00:51:16,160
was the manufacture
and distribution
1198
00:51:16,290 --> 00:51:17,813
of music and other media.
1199
00:51:17,944 --> 00:51:19,598
REPORTER: This freshman atPalm Beach Atlantic College
1200
00:51:19,728 --> 00:51:22,601
used to download songs fromhis favorite bands on Napster.
1201
00:51:22,731 --> 00:51:24,733
Now he thinks the musiciansare getting too greedy.
1202
00:51:24,864 --> 00:51:26,735
CHARLIE ROSE: Artists andthe recording industry
1203
00:51:26,866 --> 00:51:28,215
want the website shut down.
1204
00:51:28,346 --> 00:51:30,043
REPORTER: Federal court
ruled Monday Napster
1205
00:51:30,174 --> 00:51:33,264
must stop allowing music fansto swap copyrighted material.
1206
00:51:33,394 --> 00:51:35,875
Napster users had downloadedan estimated 200 million songs.
1207
00:51:36,005 --> 00:51:37,268
CHARLIE ROSE: --is
an action filed
1208
00:51:37,398 --> 00:51:38,878
by the legendary heavy
metal group Metallica.
1209
00:51:39,008 --> 00:51:39,748
Hang on.
1210
00:51:39,879 --> 00:51:40,619
It's not about money.
1211
00:51:40,749 --> 00:51:41,663
It's about control.
1212
00:51:41,794 --> 00:51:43,361
It's really about the control.
1213
00:51:43,491 --> 00:51:45,580
MAN: We've all seen what'shappened to the music industry
1214
00:51:45,711 --> 00:51:47,191
with new technology.
1215
00:51:47,321 --> 00:51:49,802
INTERVIEWER: Can an artistsurvive on Spotify income?
1216
00:51:49,932 --> 00:51:51,717
I think that streaming--
1217
00:51:51,847 --> 00:51:53,414
I'm absolutely
sure that streaming
1218
00:51:53,545 --> 00:51:55,547
will be the dominant
way that artists
1219
00:51:55,677 --> 00:51:56,896
will get paid in the future.
1220
00:51:57,026 --> 00:51:58,593
MAN: They're not going
to make any money.
1221
00:51:58,724 --> 00:52:00,987
MAN: What can artists do buttake what Spotify gives them?
1222
00:52:01,118 --> 00:52:02,771
MAN: 0.00006 of a cent.
1223
00:52:02,902 --> 00:52:04,469
I might have left
a zero off there.
1224
00:52:04,599 --> 00:52:08,386
Is something like that nowhappening to movies and TV?
1225
00:52:08,516 --> 00:52:09,604
Yes.
1226
00:52:09,735 --> 00:52:11,258
Netflix has its
own business model.
1227
00:52:11,389 --> 00:52:12,825
ANNOUNCER: Streaming
video online.
1228
00:52:12,955 --> 00:52:15,784
WOMAN: Many people are gettingtheir content these days
1229
00:52:15,915 --> 00:52:17,786
on streaming services.
1230
00:52:17,917 --> 00:52:19,179
WOMAN: The movie
industry is really
1231
00:52:19,310 --> 00:52:20,789
facing a crisis right now.
1232
00:52:20,920 --> 00:52:22,835
MAN: Being able to compensatethe rightful creators
1233
00:52:22,965 --> 00:52:24,663
is a big--
1234
00:52:24,793 --> 00:52:26,795
NARRATOR: A new model for thedistribution and compensation
1235
00:52:26,926 --> 00:52:29,885
for art and artists
is badly needed,
1236
00:52:30,016 --> 00:52:32,323
and some believe blockchaincould lead the way.
1237
00:52:32,453 --> 00:52:33,280
[MUSIC - IMOGEN HEAP, "HIDE AND SEEK"]
1238
00:52:33,411 --> 00:52:34,368
IMOGEN HEAP: [SINGING] Mmm.
1239
00:52:39,243 --> 00:52:49,818
Spin me around again
and rub my eyes.
1240
00:52:49,949 --> 00:52:51,733
Three years ago, I heard
the word "blockchain"
1241
00:52:51,864 --> 00:52:54,693
for the first time, and
I went through looking
1242
00:52:54,823 --> 00:52:55,911
what this thing was about.
1243
00:52:56,042 --> 00:52:58,305
[SINGING] When busy--
1244
00:52:58,436 --> 00:53:01,439
I feel like this
blockchain revolution,
1245
00:53:01,569 --> 00:53:04,224
there's an opportunity for us torethink the music industry how
1246
00:53:04,355 --> 00:53:05,791
we would like it
to be, so people
1247
00:53:05,921 --> 00:53:08,620
could do business easierwith our songs, and with us.
1248
00:53:08,750 --> 00:53:12,319
We did an early experimentwhere we did direct payments
1249
00:53:12,450 --> 00:53:14,930
using smart contract for thisone song called "Tiny Human."
1250
00:53:15,061 --> 00:53:17,150
You know, a kind
of pay-as-you-use,
1251
00:53:17,281 --> 00:53:19,021
taking a little bit at a time.
1252
00:53:19,152 --> 00:53:20,849
[light music]
1253
00:53:20,980 --> 00:53:22,721
A Spotify or an
iTunes has to deal
1254
00:53:22,851 --> 00:53:25,245
with 200 individual
organizations
1255
00:53:25,376 --> 00:53:28,727
to send money to aroundthe world for one artist,
1256
00:53:28,857 --> 00:53:31,382
and that's crazy.
1257
00:53:31,512 --> 00:53:32,774
There's many
applications which I
1258
00:53:32,905 --> 00:53:34,907
feel could spring out of this.
1259
00:53:35,037 --> 00:53:37,692
One of them could simply
be, how could artists
1260
00:53:37,823 --> 00:53:41,043
give really easilytoward a disaster relief?
1261
00:53:41,174 --> 00:53:44,090
Then there's some acknowledgmentof that going to something.
1262
00:53:44,221 --> 00:53:45,700
So you actually become--
1263
00:53:45,831 --> 00:53:48,747
you become a beacon for whatyou stand for that's not
1264
00:53:48,877 --> 00:53:50,009
disconnected to the song.
1265
00:53:50,139 --> 00:53:51,532
[MUSIC - IMOGEN HEAP, "HIDE AND SEEK"]
1266
00:53:51,663 --> 00:53:56,624
[SINGING] Hide and seek.
1267
00:53:56,755 --> 00:53:59,279
One of the many positive things,I think, that came from Napster
1268
00:53:59,410 --> 00:54:02,282
is that there is this, look,you see what happened then
1269
00:54:02,413 --> 00:54:04,153
if you don't embrace change.
1270
00:54:04,284 --> 00:54:06,591
This is going to
happen to you again,
1271
00:54:06,721 --> 00:54:07,896
but a million times worse.
1272
00:54:08,027 --> 00:54:12,205
[SINGING] --and seek.
1273
00:54:12,336 --> 00:54:14,076
I believe in the
power of blockchain
1274
00:54:14,207 --> 00:54:15,730
to put something
forward that's really
1275
00:54:15,861 --> 00:54:17,993
going to enable us to have aflourishing music ecosystem.
1276
00:54:18,124 --> 00:54:19,212
[SINGING] Oh, oh.
1277
00:54:23,738 --> 00:54:26,045
[cheering]
1278
00:54:27,786 --> 00:54:29,266
Thank you everyone, ah--thank you, everyone, thank you
1279
00:54:29,396 --> 00:54:30,484
for this amazing feeling.
1280
00:54:30,615 --> 00:54:32,921
[upbeat electronic music]
1281
00:54:38,013 --> 00:54:39,754
GRAMATIK: For me,
it's very simple.
1282
00:54:39,885 --> 00:54:42,931
Trying to be financiallystable and independent, not
1283
00:54:43,062 --> 00:54:45,978
beholden to any gatekeepers
and intermediaries,
1284
00:54:46,108 --> 00:54:51,331
and able to make music
with 100% freedom.
1285
00:54:51,462 --> 00:54:54,900
In the beginning, I was tiedto some smaller label that
1286
00:54:55,030 --> 00:54:56,902
were trying to do it
the old school way,
1287
00:54:57,032 --> 00:54:59,078
and I was very
frustrated with that.
1288
00:54:59,208 --> 00:55:01,863
So I just ended up leaving andputting my entire discography
1289
00:55:01,994 --> 00:55:04,866
on Pirate Bay.
1290
00:55:04,997 --> 00:55:08,740
I just want to think
about making good art.
1291
00:55:08,870 --> 00:55:12,178
Once you really realize what adecentralized technology means,
1292
00:55:12,309 --> 00:55:15,877
you can't think of the futurewith technology any other way.
1293
00:55:16,008 --> 00:55:18,053
You could tokenize
anything, you know?
1294
00:55:18,184 --> 00:55:19,620
That's why ever
since I found out
1295
00:55:19,751 --> 00:55:22,667
about blockchain and Bitcoinabout four years ago,
1296
00:55:22,797 --> 00:55:25,626
I've been waiting to utilizethis revolutionary technology
1297
00:55:25,757 --> 00:55:27,498
to change our industry.
1298
00:55:27,628 --> 00:55:30,544
I'm really excited to be
able to be a part of it.
1299
00:55:30,675 --> 00:55:32,938
It's like stocks 2.0.
1300
00:55:33,068 --> 00:55:35,070
MAN: We are go for launch.
1301
00:55:35,201 --> 00:55:38,813
[upbeat electronic music]
1302
00:55:38,944 --> 00:55:41,947
NARRATOR: In November of2017, at a show in Zurich,
1303
00:55:42,077 --> 00:55:45,124
Gramatik launched the token
for his own blockchain.
1304
00:55:45,254 --> 00:55:46,908
The token allows
the buyer to share
1305
00:55:47,039 --> 00:55:49,607
in the revenue of Gramatik'sintellectual property,
1306
00:55:49,737 --> 00:55:51,913
creating a direct andequity-based relationship
1307
00:55:52,044 --> 00:55:54,960
between artist and fan.
1308
00:55:55,090 --> 00:55:56,701
GRAMATIK: The success
of the platform
1309
00:55:56,831 --> 00:55:59,486
is way more important to methan the success of my token,
1310
00:55:59,617 --> 00:56:02,271
because the platformactually has the potential
1311
00:56:02,402 --> 00:56:03,229
to change the industry.
1312
00:56:08,669 --> 00:56:12,412
My token is just
enabling me to make art.
1313
00:56:12,543 --> 00:56:15,720
That's what's most excitingabout the whole idea.
1314
00:56:15,850 --> 00:56:19,985
Being completely autonomous andfree to make your art the way
1315
00:56:20,115 --> 00:56:23,815
you want it without
anybody controlling you.
1316
00:56:23,945 --> 00:56:26,295
That's what you dream about.
1317
00:56:26,426 --> 00:56:28,080
NARRATOR: Most of the
investors are already
1318
00:56:28,210 --> 00:56:30,778
committed members of the
cryptocurrency space,
1319
00:56:30,909 --> 00:56:33,564
so the question remains whetherblockchain technology is
1320
00:56:33,694 --> 00:56:35,740
a panacea or a case
of wishful thinking.
1321
00:56:40,092 --> 00:56:41,789
REPORTER: AllegedBritish hacker Lauri Love
1322
00:56:41,920 --> 00:56:43,574
has been given the
green light to appeal
1323
00:56:43,704 --> 00:56:48,143
his extradition to the US, wherehe's wanted for cyber hacking.
1324
00:56:48,274 --> 00:56:50,145
How are you feeling about it?
1325
00:56:50,276 --> 00:56:51,799
I'm really happy
that we got this news
1326
00:56:51,930 --> 00:56:53,540
and not the other
news that would mean I
1327
00:56:53,671 --> 00:56:55,150
would be getting
kidnapped imminently.
1328
00:56:55,281 --> 00:56:57,805
So we're very thankful for it.
1329
00:56:57,936 --> 00:56:59,720
So all we're asking
for in this appeal
1330
00:56:59,851 --> 00:57:02,462
is that the UK
jurisdiction applies.
1331
00:57:02,593 --> 00:57:03,681
I've never been to America.
1332
00:57:03,811 --> 00:57:05,204
It's not that I've
escaped from there
1333
00:57:05,334 --> 00:57:06,423
after committing some crimes.
1334
00:57:06,553 --> 00:57:08,207
Any crimes, if they
were committed,
1335
00:57:08,337 --> 00:57:11,253
were committed in the UK, and wehave computer crime laws here,
1336
00:57:11,384 --> 00:57:13,821
and we have perfectly
functioning courts.
1337
00:57:13,952 --> 00:57:15,649
So I'm just asking
for what anybody else
1338
00:57:15,780 --> 00:57:17,259
in a similar position
would expect,
1339
00:57:17,390 --> 00:57:19,436
and that's to be tried inthe courts of the country
1340
00:57:19,566 --> 00:57:20,611
where they live.
1341
00:57:20,741 --> 00:57:21,829
I'm happy to have
my day in court
1342
00:57:21,960 --> 00:57:23,527
once I see some
evidence against me,
1343
00:57:23,657 --> 00:57:26,051
because so far, no evidencehas been produced by the USA
1344
00:57:26,181 --> 00:57:28,053
about my involvement.
1345
00:57:28,183 --> 00:57:31,273
NARRATOR: Lauri's case receivedwidespread press in the UK--
1346
00:57:31,404 --> 00:57:33,450
REPORTER: The family
are well-known locally,
1347
00:57:33,580 --> 00:57:35,452
and-- it would
seem-- well-liked.
1348
00:57:35,582 --> 00:57:37,671
NARRATOR: --but saw littleattention in the US,
1349
00:57:37,802 --> 00:57:40,195
except amongst the technologycommunity and the more critical
1350
00:57:40,326 --> 00:57:41,806
political journalists.
1351
00:57:41,936 --> 00:57:43,590
BARRETT BROWN: They
will over-indict
1352
00:57:43,721 --> 00:57:46,375
people to begin with, as theyhave done in Lauri Love's case.
1353
00:57:46,506 --> 00:57:49,204
Anyone who's indicted willgo through a certain level
1354
00:57:49,335 --> 00:57:50,510
of due process violation.
1355
00:57:50,641 --> 00:57:52,164
And anyone who's
imprisoned in the US
1356
00:57:52,294 --> 00:57:54,296
will find that they haveno recourse to the courts,
1357
00:57:54,427 --> 00:57:56,603
although they're
technically supposed to.
1358
00:57:56,734 --> 00:57:58,823
The prison authorities
will work to stymie
1359
00:57:58,953 --> 00:58:02,304
the process of an inmate, forinstance, complaining about not
1360
00:58:02,435 --> 00:58:05,177
getting medication, beingheld legally in the shoe,
1361
00:58:05,307 --> 00:58:07,266
in the hall, for months on end.
1362
00:58:07,396 --> 00:58:09,007
Problem with the
US justice system
1363
00:58:09,137 --> 00:58:13,359
is that it's one of those thingsthat no one actually seriously
1364
00:58:13,490 --> 00:58:14,882
asserts that it works properly.
1365
00:58:18,190 --> 00:58:20,627
LAURI LOVE: I'm facing
being extradited
1366
00:58:20,758 --> 00:58:22,455
to a country I've never
visited, and they'd
1367
00:58:22,586 --> 00:58:27,678
like to lock me up for 99 yearsbecause the US government has
1368
00:58:27,808 --> 00:58:30,942
stamped its mark on the
internet while trying
1369
00:58:31,072 --> 00:58:32,334
to say that this
is about freedom,
1370
00:58:32,465 --> 00:58:34,685
and trade, and nice things.
1371
00:58:34,815 --> 00:58:37,252
So we have a battle now.
1372
00:58:37,383 --> 00:58:40,038
REPORTER: No date has yetbeen set for the appeal.
1373
00:58:40,168 --> 00:58:43,563
[atmospheric music]
1374
00:58:43,694 --> 00:58:45,696
NARRATOR: By the end
of the summer of 2017,
1375
00:58:45,826 --> 00:58:48,960
Bitcoin, Ethereum, and theentire cryptocurrency market
1376
00:58:49,090 --> 00:58:51,310
continues to climb
to all-time highs,
1377
00:58:51,440 --> 00:58:53,225
blindsiding the establishment.
1378
00:58:53,355 --> 00:58:57,185
I don't understand
what's behind Bitcoin.
1379
00:58:57,316 --> 00:59:00,232
I can't see any intrinsic value.
1380
00:59:00,362 --> 00:59:02,451
NARRATOR: Meanwhile,
the Trump administration
1381
00:59:02,582 --> 00:59:04,584
intensifies the government'saggressive stance
1382
00:59:04,715 --> 00:59:06,543
on the internet and
new technologies,
1383
00:59:06,673 --> 00:59:09,720
repealing net neutrality, aset of regulations intended
1384
00:59:09,850 --> 00:59:11,765
to maintain an open internet.
1385
00:59:11,896 --> 00:59:13,419
But several companies
are fighting back
1386
00:59:13,550 --> 00:59:15,508
against excessive corporateand government control
1387
00:59:15,639 --> 00:59:18,729
of the internet using
blockchain technology.
1388
00:59:18,859 --> 00:59:21,209
JOHN LYOTIER: If you looked atthis whole centralized system
1389
00:59:21,340 --> 00:59:23,560
we're living in, everythinggoes up and across the ISP,
1390
00:59:23,690 --> 00:59:24,822
and that's just not right.
1391
00:59:24,952 --> 00:59:27,041
That's really what
we want to change.
1392
00:59:27,172 --> 00:59:29,957
We let people transmitinformation back and forth
1393
00:59:30,088 --> 00:59:32,481
without using the internet.
1394
00:59:32,612 --> 00:59:34,571
The internet itself is
one giant mesh network.
1395
00:59:34,701 --> 00:59:36,485
It has centralized nodes
that connect everybody
1396
00:59:36,616 --> 00:59:38,226
to each other.
1397
00:59:38,357 --> 00:59:40,272
But as soon as somebody canstart controlling that layer,
1398
00:59:40,402 --> 00:59:41,969
it's not a decentralized system.
1399
00:59:42,100 --> 00:59:43,754
But in our perspective,
what we look at as
1400
00:59:43,884 --> 00:59:46,931
mesh is really much more of adevice-to-device communication
1401
00:59:47,061 --> 00:59:48,933
without having to go upto those central servers.
1402
00:59:54,852 --> 00:59:57,855
So my phone broadcasts signal,and your phone receives signal.
1403
00:59:57,985 --> 01:00:02,903
There's no internet, no
ISP in the middle of us.
1404
01:00:03,034 --> 01:00:05,819
But we didn't quite realizehow much of a threat we were.
1405
01:00:05,950 --> 01:00:07,647
Not just to the telecom
companies-- anybody
1406
01:00:07,778 --> 01:00:09,518
who's basically built
their livelihood off
1407
01:00:09,649 --> 01:00:11,520
of the centralized system.
1408
01:00:11,651 --> 01:00:13,914
They're all threatened by thisnew decentralized ecosystem
1409
01:00:14,045 --> 01:00:15,568
that can evolve.
1410
01:00:15,699 --> 01:00:17,396
There's no need for a lotof these players and people
1411
01:00:17,526 --> 01:00:18,963
to exist in the first place.
1412
01:00:19,093 --> 01:00:20,878
That's really what thisdecentralized movement's all
1413
01:00:21,008 --> 01:00:22,706
about.
1414
01:00:22,836 --> 01:00:24,925
NARRATOR: While some lookto decentralize the internet
1415
01:00:25,056 --> 01:00:26,840
and exchange of
information, others
1416
01:00:26,971 --> 01:00:29,234
look to decentralized systemsof financial exchange.
1417
01:00:29,364 --> 01:00:32,237
[traffic rumbling]
1418
01:00:33,630 --> 01:00:34,805
MICHAEL OVED:
Finance proliferates
1419
01:00:34,935 --> 01:00:38,025
into all of society.
1420
01:00:38,156 --> 01:00:39,810
But currently, the
way to trade assets
1421
01:00:39,940 --> 01:00:42,421
is through
centralized exchanges.
1422
01:00:42,551 --> 01:00:45,467
Centralized exchangesare run by a third party.
1423
01:00:45,598 --> 01:00:47,861
At AirSwap, we're building
a decentralized exchange
1424
01:00:47,992 --> 01:00:50,734
which allows you to just swapvalue with anyone globally
1425
01:00:50,864 --> 01:00:52,518
on a peer-to-peer basis.
1426
01:00:52,649 --> 01:00:55,869
These projects are a littlebit different than most, maybe,
1427
01:00:56,000 --> 01:00:57,305
start-ups.
1428
01:00:57,436 --> 01:00:59,525
For a token launch, you
need a group of people
1429
01:00:59,656 --> 01:01:02,659
to be behind you to
get this thing through.
1430
01:01:02,789 --> 01:01:05,009
NARRATOR: In October
of 2017, AirSwap
1431
01:01:05,139 --> 01:01:08,882
launched its own token sale,otherwise known as an ICO.
1432
01:01:09,013 --> 01:01:10,928
An ICO is an initial
coin offering,
1433
01:01:11,058 --> 01:01:13,365
which takes its name fromthe standard IPO, when
1434
01:01:13,495 --> 01:01:16,585
a company takes itselfpublic on the stock market.
1435
01:01:16,716 --> 01:01:19,240
An ICO will allow the publicto buy into the company
1436
01:01:19,371 --> 01:01:21,155
directly, and
potentially provide
1437
01:01:21,286 --> 01:01:23,244
the company with
much-needed financing
1438
01:01:23,375 --> 01:01:25,203
and support in order to survive.
1439
01:01:25,333 --> 01:01:27,640
MICHAEL OVED: Been at this for72 hours straight, actually.
1440
01:01:27,771 --> 01:01:29,511
The past three days
were power naps.
1441
01:01:29,642 --> 01:01:33,777
It's like finals week in collegeor anything super intense.
1442
01:01:33,907 --> 01:01:36,693
NISSA SZABO: So the sale
opens in 15 minutes.
1443
01:01:36,823 --> 01:01:39,086
We're just preparing
the communication
1444
01:01:39,217 --> 01:01:41,001
that's all going to go
out right at that time.
1445
01:01:41,132 --> 01:01:43,134
We'll be sending
to email, social--
1446
01:01:43,264 --> 01:01:46,615
you know, Twitter, Facebook--as well as the Telegram channel.
1447
01:01:46,746 --> 01:01:48,748
Hey, someone's claiming
they're a staff member
1448
01:01:48,879 --> 01:01:49,575
and they're not.
1449
01:01:49,706 --> 01:01:50,184
We should ban them.
1450
01:01:50,315 --> 01:01:51,055
"J Sitio."
1451
01:01:51,185 --> 01:01:53,492
I got it.
1452
01:01:53,622 --> 01:01:56,582
Somebody is posing as us.
1453
01:01:56,713 --> 01:02:00,542
And they're asking people tosend-- to contribute here.
1454
01:02:00,673 --> 01:02:02,327
MAN: There are still
scammers in the room.
1455
01:02:02,457 --> 01:02:03,154
Take them out.
1456
01:02:03,284 --> 01:02:04,721
Yeah, I'm trying.
1457
01:02:04,851 --> 01:02:05,678
MAN: Can we--
1458
01:02:05,809 --> 01:02:06,679
WOMAN: Can we block them?
1459
01:02:06,810 --> 01:02:07,506
MAN: Yes.
1460
01:02:07,636 --> 01:02:08,725
In AirSwap Official.
1461
01:02:08,855 --> 01:02:10,030
Announce that we're
being flooded.
1462
01:02:10,161 --> 01:02:11,553
I don't know if we can.
1463
01:02:11,684 --> 01:02:13,251
MAN: What was going onthere are two Google ads--
1464
01:02:13,381 --> 01:02:15,122
just some more scam websites.
1465
01:02:15,253 --> 01:02:16,820
Those are fake.
1466
01:02:16,950 --> 01:02:18,865
And then that's the real one.
1467
01:02:18,996 --> 01:02:20,911
We just need a
single source of truth
1468
01:02:21,041 --> 01:02:24,566
for a list of offending sitesso we can track these things.
1469
01:02:24,697 --> 01:02:26,438
MICHAEL OVED: I mean,
these are the same kind
1470
01:02:26,568 --> 01:02:29,702
of people that are justscamming people around the web.
1471
01:02:29,833 --> 01:02:31,922
Every token launch in thelast 12 months or something
1472
01:02:32,052 --> 01:02:34,533
will have a problem withpeople trying to steal funds
1473
01:02:34,663 --> 01:02:36,274
from the users, the customers.
1474
01:02:36,404 --> 01:02:38,624
There's tons of accounts.
1475
01:02:38,755 --> 01:02:40,017
I'm banning all of them.
1476
01:02:40,147 --> 01:02:41,366
MAN: How do I--
1477
01:02:41,496 --> 01:02:43,150
MAN: This is only
going to get crazier.
1478
01:02:43,281 --> 01:02:44,586
MAN: Yeah, this is fucked up.
1479
01:02:44,717 --> 01:02:47,502
[dramatic music]
1480
01:02:49,069 --> 01:02:50,418
MICHAEL OVED: And now
we're in the main sale.
1481
01:02:50,549 --> 01:02:51,811
People are just
anxious right now.
1482
01:02:51,942 --> 01:02:53,508
They want to get in.
1483
01:02:53,639 --> 01:02:55,380
We actually thought we wouldget about 5,000 submissions.
1484
01:02:55,510 --> 01:02:58,383
We ended up getting
18,000 in 24 hours.
1485
01:02:58,513 --> 01:03:03,301
So that's about $12million the current price.
1486
01:03:03,431 --> 01:03:08,045
People are not popping
champagne bottles today.
1487
01:03:08,175 --> 01:03:10,351
Today is not the end game.
1488
01:03:10,482 --> 01:03:11,613
It's really just the beginning.
1489
01:03:11,744 --> 01:03:14,051
[ominous music]
1490
01:03:28,630 --> 01:03:30,197
MARK JEFFREY: Hello?
1491
01:03:30,328 --> 01:03:31,242
How you doing?
1492
01:03:31,372 --> 01:03:32,286
Hey, did you change something?
1493
01:03:32,417 --> 01:03:33,244
MAN [ON COMPUTER]: No problem.
1494
01:03:33,374 --> 01:03:33,897
MARK JEFFREY: There we go.
1495
01:03:34,027 --> 01:03:35,550
Much better.
1496
01:03:35,681 --> 01:03:36,377
MAN [ON COMPUTER]: I justfinished watching the video
1497
01:03:36,508 --> 01:03:37,161
that you sent along.
1498
01:03:37,291 --> 01:03:37,770
Looks really cool.
1499
01:03:37,901 --> 01:03:38,466
Oh, cool.
1500
01:03:38,597 --> 01:03:39,206
Thank you, man.
1501
01:03:39,337 --> 01:03:40,599
Appreciate that.
1502
01:03:40,729 --> 01:03:43,080
In the developing world,
people have no 911,
1503
01:03:43,210 --> 01:03:46,126
so we're looking at usingcryptocurrency, tokens,
1504
01:03:46,257 --> 01:03:48,172
the blockchain world,
in order to create
1505
01:03:48,302 --> 01:03:52,219
an economic framework fordecentralized 911 worldwide.
1506
01:03:52,350 --> 01:03:54,918
So we created a currency
called Guardium.
1507
01:03:55,048 --> 01:03:57,659
So you can think of it as thisnew worldwide public utility.
1508
01:03:57,790 --> 01:03:59,400
MAN [ON COMPUTER]:
In the video, it
1509
01:03:59,531 --> 01:04:01,620
said that you guys were tryingto have a token sale November
1510
01:04:01,750 --> 01:04:03,404
15th or something, but
that's changed now.
1511
01:04:03,535 --> 01:04:04,753
We did.
1512
01:04:04,884 --> 01:04:06,930
We pushed it back
to January 22, just
1513
01:04:07,060 --> 01:04:09,410
for a whole bunch of reasons.
1514
01:04:09,541 --> 01:04:10,890
Technical volatility
of the market
1515
01:04:11,021 --> 01:04:14,546
was just crazy at
the time, and there
1516
01:04:14,676 --> 01:04:15,982
were like five or six things.
1517
01:04:16,113 --> 01:04:17,723
Yeah.
1518
01:04:17,854 --> 01:04:19,333
NARRATOR: And now
everyone in the world
1519
01:04:19,464 --> 01:04:21,858
knows the words Bitcoin
and cryptocurrency.
1520
01:04:21,988 --> 01:04:24,251
What had been dismissed
since its inception is
1521
01:04:24,382 --> 01:04:26,819
a global phenomenon,
a kind of crypto land
1522
01:04:26,950 --> 01:04:29,430
rush, both by financial
investors and start-ups
1523
01:04:29,561 --> 01:04:31,389
creating their own ICOs.
1524
01:04:31,519 --> 01:04:34,914
And with that rush comesmassive speculation and hype.
1525
01:04:35,045 --> 01:04:36,002
MAN: Why not make a buck?
1526
01:04:36,133 --> 01:04:37,047
Check out crypto.
1527
01:04:37,177 --> 01:04:38,526
Dash digital cash.
1528
01:04:38,657 --> 01:04:39,832
MAN: Oh, please, please, please.
1529
01:04:39,963 --> 01:04:40,702
CHARLES PAYNE: Make no mistake.
1530
01:04:40,833 --> 01:04:42,008
This is the Wild West.
1531
01:04:42,139 --> 01:04:44,141
There are now 1,300
cryptocurrencies,
1532
01:04:44,271 --> 01:04:46,012
not to mention any
number of companies
1533
01:04:46,143 --> 01:04:47,840
that claim to be in the
blockchain business.
1534
01:04:47,971 --> 01:04:49,363
MAN: Initial coin offerings.
1535
01:04:49,494 --> 01:04:50,799
Obviously a lot ofopportunists out there either
1536
01:04:50,930 --> 01:04:53,150
creating their
own bespoke coins,
1537
01:04:53,280 --> 01:04:55,848
or just essentially tryingto rebrand themselves
1538
01:04:55,979 --> 01:04:57,458
as a blockchain or Bitcoin play.
1539
01:04:57,589 --> 01:04:58,895
MAN: We have several
examples where
1540
01:04:59,025 --> 01:05:01,027
people are trying
to adopt the lingo
1541
01:05:01,158 --> 01:05:03,160
of Bitcoin and other
cryptocurrencies
1542
01:05:03,290 --> 01:05:05,379
to try to enhance the valueof stocks that have nothing
1543
01:05:05,510 --> 01:05:06,946
to do with it.
1544
01:05:07,077 --> 01:05:08,774
NARRATOR: Celebrities jumponboard the ICO craze.
1545
01:05:08,905 --> 01:05:10,210
Everyone from Paris Hilton--
1546
01:05:10,341 --> 01:05:11,255
That's hot.
1547
01:05:11,385 --> 01:05:12,256
NARRATOR: --to Floyd Mayweather.
1548
01:05:12,386 --> 01:05:13,997
FLOYD MAYWEATHER: What's up?
1549
01:05:14,127 --> 01:05:16,129
It's the one and only, yourman Floyd "Money" Mayweather.
1550
01:05:16,260 --> 01:05:18,131
You see right there?
1551
01:05:18,262 --> 01:05:19,480
Get my card out.
1552
01:05:19,611 --> 01:05:22,309
My Centra card.
1553
01:05:22,440 --> 01:05:26,009
I'm doing big things.
1554
01:05:26,139 --> 01:05:27,619
MAN: And this is
the strange thing
1555
01:05:27,749 --> 01:05:30,622
that I really don't
understand, is
1556
01:05:30,752 --> 01:05:33,930
in the midst of news
of this lawsuit,
1557
01:05:34,060 --> 01:05:35,279
the token price has gone up.
1558
01:05:35,409 --> 01:05:36,541
[cash register ding]
1559
01:05:36,671 --> 01:05:37,890
One thing's for sure.
1560
01:05:38,021 --> 01:05:41,633
We're in a really
crazy market right now.
1561
01:05:41,763 --> 01:05:43,374
There are some really
interesting things
1562
01:05:43,504 --> 01:05:45,332
that only these
kind of distributed
1563
01:05:45,463 --> 01:05:46,943
decentralized systems can do.
1564
01:05:47,073 --> 01:05:50,598
But people are not necessarilybuying these currencies
1565
01:05:50,729 --> 01:05:52,383
because of the tech.
1566
01:05:52,513 --> 01:05:56,343
They're buying them becauseof other factors, like money.
1567
01:05:56,474 --> 01:05:58,650
NARRATOR: This flood
of ICOs and speculation
1568
01:05:58,780 --> 01:06:01,131
suggests that cryptocurrenciesand blockchain-based
1569
01:06:01,261 --> 01:06:04,264
technologies will likelyrequire some form of regulation
1570
01:06:04,395 --> 01:06:06,179
in order to survive.
1571
01:06:06,310 --> 01:06:09,878
Companies like Omega One,another decentralized exchange,
1572
01:06:10,009 --> 01:06:12,229
are trying to navigate
this unstable terrain.
1573
01:06:14,622 --> 01:06:16,189
MAN: I don't know
about Omega One.
1574
01:06:16,320 --> 01:06:18,365
[chatter]
1575
01:06:20,324 --> 01:06:21,890
ALEX KEEGAN: So he's actuallyprobably putting on, supporting
1576
01:06:22,021 --> 01:06:23,370
through Omega One, and
watching the exchange
1577
01:06:23,501 --> 01:06:24,763
to see if he can
see it happening?
1578
01:06:24,893 --> 01:06:25,720
MAN: Yeah, exactly.
1579
01:06:25,851 --> 01:06:26,983
MAN: There's no doubt.
1580
01:06:27,113 --> 01:06:27,809
ALEX KEEGAN: The
regulatory environment
1581
01:06:27,940 --> 01:06:29,072
is pretty uncertain.
1582
01:06:29,202 --> 01:06:30,508
MAN: He's got his
two monitors open.
1583
01:06:30,638 --> 01:06:33,119
Basically, trading
cryptocurrencies
1584
01:06:33,250 --> 01:06:36,122
is really dangerous
and really expensive.
1585
01:06:36,253 --> 01:06:37,950
There's an interesting
dynamic where
1586
01:06:38,081 --> 01:06:40,300
it's hard to provide goodprotections to token holders
1587
01:06:40,431 --> 01:06:43,738
because there isn't a regulatoryframework for that exact thing
1588
01:06:43,869 --> 01:06:45,088
yet.
1589
01:06:45,218 --> 01:06:46,872
A lot of what people
have done, I think,
1590
01:06:47,003 --> 01:06:49,875
is just try to create no legalobligation to a token holder.
1591
01:06:50,006 --> 01:06:53,313
So at a high level, you
see regulatory reactions
1592
01:06:53,444 --> 01:06:56,229
that make sense, from
different countries.
1593
01:06:56,360 --> 01:06:58,579
In China, they want to
crack down on Bitcoin.
1594
01:06:58,710 --> 01:07:00,538
And they're a situation
where, much more
1595
01:07:00,668 --> 01:07:03,889
than it is the case in the US,this ICO market got really hot.
1596
01:07:04,020 --> 01:07:06,109
So we already know that
in the last few months,
1597
01:07:06,239 --> 01:07:08,763
China has banned local
bitcoin exchanges
1598
01:07:08,894 --> 01:07:11,723
and also cracked down on ICOs.
1599
01:07:11,853 --> 01:07:13,377
SKY GUO: The Chinese
central government,
1600
01:07:13,507 --> 01:07:16,249
they fear that becauseit's kind of decentralized,
1601
01:07:16,380 --> 01:07:18,469
that they cannot
fully control it,
1602
01:07:18,599 --> 01:07:21,124
that it may cause
financial crisis.
1603
01:07:21,254 --> 01:07:23,169
The technology
itself, of course, it
1604
01:07:23,300 --> 01:07:24,823
needs innovation and progress.
1605
01:07:24,953 --> 01:07:27,391
But it also needs some
kind of regulation,
1606
01:07:27,521 --> 01:07:32,744
because right now, the ICOplace is full of scammers.
1607
01:07:32,874 --> 01:07:34,311
ALEX KEEGAN: In the
US, this obviously
1608
01:07:34,441 --> 01:07:35,964
is a thing that needs
some kind of regulation.
1609
01:07:36,095 --> 01:07:38,054
There is a question of
which regulatory body is
1610
01:07:38,184 --> 01:07:40,186
going to regulate which things.
1611
01:07:40,317 --> 01:07:43,363
If a utility token isn't
a security, what is it?
1612
01:07:43,494 --> 01:07:45,626
LAURI LOVE: There are
attempts to understand
1613
01:07:45,757 --> 01:07:48,629
in the traditional
economic, government,
1614
01:07:48,760 --> 01:07:50,153
legal frameworks, what is this?
1615
01:07:50,283 --> 01:07:52,024
--then some of them lookkind of like currencies.
1616
01:07:52,155 --> 01:07:53,243
Is it a currency?
1617
01:07:53,373 --> 01:07:54,287
Is it an asset?
1618
01:07:54,418 --> 01:07:55,462
Maybe that's a commodity.
1619
01:07:55,593 --> 01:07:57,334
Do you pay
capital gains on it?
1620
01:07:57,464 --> 01:08:00,206
And how can we stop thethings that we don't like?
1621
01:08:00,337 --> 01:08:02,948
But fraudulent tokens
don't help people.
1622
01:08:03,079 --> 01:08:04,819
NARRATOR: It's clear
that whether or not
1623
01:08:04,950 --> 01:08:07,605
one believes in the validityof blockchain technology,
1624
01:08:07,735 --> 01:08:11,391
it faces many obstacles, andquestions remain unanswered.
1625
01:08:11,522 --> 01:08:13,045
Will blockchain
really help solve some
1626
01:08:13,176 --> 01:08:14,742
of our most pressing issues?
1627
01:08:14,873 --> 01:08:17,789
Will cryptocurrency survivetheir inevitable regulation?
1628
01:08:17,919 --> 01:08:19,791
It's still too early
to know for certain,
1629
01:08:19,921 --> 01:08:24,100
but that's not stopping anyonefrom forming an opinion.
1630
01:08:24,230 --> 01:08:27,233
MAN: We have these criteria fordetermining what a bubble is.
1631
01:08:27,364 --> 01:08:28,408
Bitcoin is a bubble.
1632
01:08:28,539 --> 01:08:29,496
It's certainly a bubble.
1633
01:08:29,627 --> 01:08:30,454
But is it a bubble?
1634
01:08:30,584 --> 01:08:31,585
Bring up the chart here.
1635
01:08:31,716 --> 01:08:32,891
Here's the bubble in the making.
1636
01:08:33,021 --> 01:08:34,632
WOMAN: We could be in a bubble.
1637
01:08:34,762 --> 01:08:36,024
MAN: I think it looks like abubble, smells like a bubble,
1638
01:08:36,155 --> 01:08:37,243
acts like a bubble, and
feels like a bubble.
1639
01:08:37,374 --> 01:08:37,896
Bubble.
1640
01:08:38,026 --> 01:08:38,418
MAN: Bubble.
1641
01:08:38,549 --> 01:08:39,158
Bubble.
1642
01:08:39,289 --> 01:08:39,680
It is a bubble.
1643
01:08:39,811 --> 01:08:40,333
Bubble.
1644
01:08:40,464 --> 01:08:40,855
Bubbles.
1645
01:08:40,986 --> 01:08:41,552
Bubble.
1646
01:08:41,682 --> 01:08:42,248
WOMAN: Bubble.
1647
01:08:42,379 --> 01:08:42,901
MAN: Bubble.
1648
01:08:43,031 --> 01:08:43,597
MAN: Bubble.
1649
01:08:43,728 --> 01:08:44,511
WOMAN: Bubble.
1650
01:08:44,642 --> 01:08:45,947
MAN: Clearly a bubble.
1651
01:08:46,078 --> 01:08:47,384
MAN: The tulip bubble is
the first and largest.
1652
01:08:47,514 --> 01:08:48,907
Bitcoin has now supplantedthat as the largest
1653
01:08:49,037 --> 01:08:50,387
financial speculativeepisode in human history.
1654
01:08:50,517 --> 01:08:55,957
My name is Mr. Bubble,and you can watch me pop.
1655
01:08:56,088 --> 01:08:58,351
MATTHEW GREEN: Now, the questionis how much of that value
1656
01:08:58,482 --> 01:08:59,570
is going to stick around.
1657
01:08:59,700 --> 01:09:00,788
If there's a
correction, will people
1658
01:09:00,919 --> 01:09:02,486
run off and find
other things to do?
1659
01:09:02,616 --> 01:09:04,357
It's not really clear
what's going to happen.
1660
01:09:04,488 --> 01:09:06,664
But I think a lot of thisstuff is going to go away.
1661
01:09:06,794 --> 01:09:08,796
There's going to be
a lot of wreckage.
1662
01:09:08,927 --> 01:09:13,105
In the '90s, we suddenly had theordinary person start getting
1663
01:09:13,236 --> 01:09:15,803
access to the web, and allof these new technologies
1664
01:09:15,934 --> 01:09:17,414
and new companies popped up.
1665
01:09:17,544 --> 01:09:19,894
REPORTER: For the customer,Amazon only exists
1666
01:09:20,025 --> 01:09:21,244
on the computer screen.
1667
01:09:21,374 --> 01:09:24,247
And then there's the
boss, Jeff Bezos.
1668
01:09:24,377 --> 01:09:25,335
What kind of kid were you?
1669
01:09:25,465 --> 01:09:26,727
I was nerdy.
1670
01:09:26,858 --> 01:09:28,120
That hasn't changed, by the way.
1671
01:09:28,251 --> 01:09:29,991
[chuckles]
1672
01:09:30,122 --> 01:09:32,037
REPORTER: Maybe it
was his intensity,
1673
01:09:32,168 --> 01:09:34,648
or maybe it was
the way he talks.
1674
01:09:34,779 --> 01:09:37,782
Listen to the way he describeshis company's business plan.
1675
01:09:37,912 --> 01:09:41,568
We believe that this is acritical category formation
1676
01:09:41,699 --> 01:09:43,179
time.
1677
01:09:43,309 --> 01:09:44,745
MATTHEW GREEN: And everyonekind of overestimated.
1678
01:09:44,876 --> 01:09:46,791
They said, well, the internet'sgoing to be the future.
1679
01:09:46,921 --> 01:09:48,532
We're all going to bedoing all of our shopping
1680
01:09:48,662 --> 01:09:50,925
and all of our communicationover the internet by tomorrow.
1681
01:09:51,056 --> 01:09:55,887
REPORTER: If you'd bought $1,000worth of Amazon stock in 1997,
1682
01:09:56,017 --> 01:09:59,978
it would be worth between$30,000 and $60,000 today.
1683
01:10:00,108 --> 01:10:03,242
Is this investing,
or is it gambling?
1684
01:10:03,373 --> 01:10:05,810
Right now, with
the frenzy we've had,
1685
01:10:05,940 --> 01:10:08,116
to me it feels much
more like gambling.
1686
01:10:08,247 --> 01:10:09,466
Because it's crazy.
1687
01:10:09,596 --> 01:10:10,989
Well, I don't
find it rational,
1688
01:10:11,119 --> 01:10:12,251
to be honest with you.
1689
01:10:12,382 --> 01:10:14,775
It went up almost
1,000% last year.
1690
01:10:14,906 --> 01:10:16,386
When have you seen
anything comparable?
1691
01:10:16,516 --> 01:10:17,909
MAN: Nothing.
1692
01:10:18,039 --> 01:10:19,476
MATTHEW GREEN: And so allthese companies arrived,
1693
01:10:19,606 --> 01:10:21,434
and of course, immediately,there was a huge bubble.
1694
01:10:21,565 --> 01:10:24,611
Has the 1990s boomshattered old assumptions
1695
01:10:24,742 --> 01:10:25,960
about how the economy works?
1696
01:10:26,091 --> 01:10:27,962
REPORTER: But investors
keep flooding in.
1697
01:10:28,093 --> 01:10:29,442
MAN: It's not going to stop.
1698
01:10:29,573 --> 01:10:31,705
But what you could
have is a decline
1699
01:10:31,836 --> 01:10:33,011
in these stocks of 50%, 75%.
1700
01:10:33,141 --> 01:10:35,231
[bell ringing]
1701
01:10:37,320 --> 01:10:39,887
REPORTER: Closing bell mightas well have been an alarm,
1702
01:10:40,018 --> 01:10:41,411
so savage was the selling.
1703
01:10:41,541 --> 01:10:44,414
A points drop never beforeseen on the US market.
1704
01:10:44,544 --> 01:10:47,591
MATTHEW GREEN: And 90% ofthem, 95% of them all failed.
1705
01:10:47,721 --> 01:10:49,201
Looks like the bubble burst.
1706
01:10:49,332 --> 01:10:50,768
BART SIMPSON: Bubbles can burst?
1707
01:10:50,898 --> 01:10:52,770
MATTHEW GREEN: But thething about that, obviously,
1708
01:10:52,900 --> 01:10:55,512
is that it didn't end up thatthe internet was worthless.
1709
01:10:55,642 --> 01:10:57,122
We are doing our
shopping online.
1710
01:10:57,253 --> 01:10:59,167
REPORTER: And it's gettingreally nasty out there,
1711
01:10:59,298 --> 01:11:00,473
it seems to me.
1712
01:11:00,604 --> 01:11:02,693
The Barnes & Noble
bookstore is so big,
1713
01:11:02,823 --> 01:11:06,523
it makes Amazon.com look tiny.
1714
01:11:06,653 --> 01:11:08,220
MATTHEW GREEN: It
just took a little bit
1715
01:11:08,351 --> 01:11:10,570
longer than the people whohad originally visualized
1716
01:11:10,701 --> 01:11:13,660
this thought it would, and maybethere was a little exuberance,
1717
01:11:13,791 --> 01:11:15,619
and so now we're seeing
that actually happen.
1718
01:11:15,749 --> 01:11:16,924
Yeah.
1719
01:11:17,055 --> 01:11:18,622
I have a word that
I use to describe
1720
01:11:18,752 --> 01:11:20,885
the tendency of markets tobecome bubbles and pop and then
1721
01:11:21,015 --> 01:11:22,452
become bubbles again.
1722
01:11:22,582 --> 01:11:23,975
The word that I use todescribe that is capitalism.
1723
01:11:24,105 --> 01:11:25,672
They're all in
business to make profit.
1724
01:11:25,803 --> 01:11:27,979
Of course they make a profit.
1725
01:11:28,109 --> 01:11:29,981
And it's a good thing.
1726
01:11:30,111 --> 01:11:31,983
That's the incentive thatmakes capitalism work.
1727
01:11:32,113 --> 01:11:34,159
[atmospheric music]
1728
01:11:34,290 --> 01:11:36,074
NARRATOR: As cryptocurrencyvalues continue
1729
01:11:36,204 --> 01:11:38,294
to soar to
unprecedented heights,
1730
01:11:38,424 --> 01:11:41,166
there's widespread speculationabout the future of blockchain
1731
01:11:41,297 --> 01:11:42,733
technology.
1732
01:11:42,863 --> 01:11:45,126
The opinions are sohyperbolic and contradictory,
1733
01:11:45,257 --> 01:11:50,697
it becomes almost impossibleto parse fact from fiction.
1734
01:11:50,828 --> 01:11:54,048
VINAY GUPTA: So you get upto kind of where we are now.
1735
01:11:54,179 --> 01:11:56,268
We're sort of midway
through the process.
1736
01:11:56,399 --> 01:11:59,053
Bitcoin is well-establishedas a reality.
1737
01:11:59,184 --> 01:12:01,491
Everybody's comfortable
with Bitcoin's existence
1738
01:12:01,621 --> 01:12:02,622
to some degree.
1739
01:12:02,753 --> 01:12:04,320
What is it?
1740
01:12:04,450 --> 01:12:08,236
It's a bank account that storesmagic internet money that
1741
01:12:08,367 --> 01:12:10,326
comes from the centralbank of the internet, which
1742
01:12:10,456 --> 01:12:11,892
is a decentralized database
which is everywhere
1743
01:12:12,023 --> 01:12:13,677
and nowhere maintained
by a bunch of people
1744
01:12:13,807 --> 01:12:14,721
you don't understand.
1745
01:12:14,852 --> 01:12:16,767
[chuckling]
1746
01:12:16,897 --> 01:12:18,682
But the funny thing
is that if I describe
1747
01:12:18,812 --> 01:12:23,774
to you how your governmentworks, it's even worse.
1748
01:12:23,904 --> 01:12:29,562
So every four years, we hold apopularity contest regionally.
1749
01:12:29,693 --> 01:12:32,348
We pick the person that ismost likable on television,
1750
01:12:32,478 --> 01:12:34,480
more or less regardless
of their values.
1751
01:12:34,611 --> 01:12:36,134
We know nothing about
them, so they could
1752
01:12:36,264 --> 01:12:37,744
be a person playing a role.
1753
01:12:37,875 --> 01:12:39,137
And then we assemble
these people
1754
01:12:39,267 --> 01:12:41,008
into large groups that
get to decide who lives
1755
01:12:41,139 --> 01:12:43,794
and who dies every day.
1756
01:12:43,924 --> 01:12:46,579
So don't assume that becausethe new stuff is weird,
1757
01:12:46,710 --> 01:12:48,712
it's any weirder
than the old stuff.
1758
01:12:48,842 --> 01:12:50,931
The old stuff is just weirdstuff you got used to.
1759
01:12:51,062 --> 01:12:53,325
[crescendo]
1760
01:12:58,635 --> 01:13:00,288
REPORTER: How do you
respond in broad terms
1761
01:13:00,419 --> 01:13:02,421
to these accusations?
1762
01:13:02,552 --> 01:13:03,857
LAURI LOVE: It's
difficult to face
1763
01:13:03,988 --> 01:13:05,642
very serious allegations
for three years
1764
01:13:05,772 --> 01:13:07,905
and not have any due process.
1765
01:13:08,035 --> 01:13:10,081
The issue is, if I were tobe extradited to America,
1766
01:13:10,211 --> 01:13:11,996
there'd be no day in court.
1767
01:13:12,126 --> 01:13:16,957
REPORTER: Can you get your headround this figure of 99 years?
1768
01:13:17,088 --> 01:13:18,698
LAURI LOVE: There's
very poor conditions
1769
01:13:18,829 --> 01:13:21,005
in US prisons for people withmental health difficulties.
1770
01:13:21,135 --> 01:13:26,314
I think that I would be atrisk of dying, unfortunately.
1771
01:13:26,445 --> 01:13:28,360
REPORTER: That's a seriousfear for you, isn't it?
1772
01:13:32,364 --> 01:13:34,061
Do you have any steer
from your legal team
1773
01:13:34,192 --> 01:13:36,063
about what the outcome ofthe extradition hearing
1774
01:13:36,194 --> 01:13:38,326
is going to be?
1775
01:13:38,457 --> 01:13:40,503
LAURI LOVE: I would hopethat the judge has enough
1776
01:13:40,633 --> 01:13:43,114
to make the correct decisionto refuse the extradition.
1777
01:13:43,244 --> 01:13:46,030
[ominous music]
1778
01:13:47,118 --> 01:13:49,425
[disco music]
1779
01:13:49,555 --> 01:13:52,340
[cheering]
1780
01:13:55,387 --> 01:13:56,693
CROWD: [CHANTING] Lauri!
1781
01:13:56,823 --> 01:13:57,694
Lauri!
1782
01:13:57,824 --> 01:13:58,695
Lauri!
1783
01:13:58,825 --> 01:14:00,044
Lauri!
1784
01:14:00,174 --> 01:14:02,438
TOR EKELAND: Who's
the next Aaron Swartz?
1785
01:14:02,568 --> 01:14:04,962
Who's the next Lauri Love?
1786
01:14:05,092 --> 01:14:09,009
The ones who sincerely wantinformation to be free.
1787
01:14:09,140 --> 01:14:11,708
In a certain sense,
the more things change,
1788
01:14:11,838 --> 01:14:14,450
the more things stay the same.
1789
01:14:14,580 --> 01:14:16,060
NARRATOR: The battle
lines are drawn
1790
01:14:16,190 --> 01:14:18,366
between the fight fordecentralization and internet
1791
01:14:18,497 --> 01:14:22,153
freedom and centralized systemsand institutional control
1792
01:14:22,283 --> 01:14:26,070
with no clear path forward.
1793
01:14:26,200 --> 01:14:27,985
VINAY GUPTA: Right
now, there's no way
1794
01:14:28,115 --> 01:14:30,161
of figuring out how
everything in the world
1795
01:14:30,291 --> 01:14:33,773
works without having some kindof centralized governance.
1796
01:14:33,904 --> 01:14:36,210
The question is whethercentralization of functions
1797
01:14:36,341 --> 01:14:38,561
turns into
centralization of power.
1798
01:14:38,691 --> 01:14:40,737
The unfortunate truth isthat centralization is often
1799
01:14:40,867 --> 01:14:41,912
very efficient.
1800
01:14:42,042 --> 01:14:43,783
And often, what
centralization does
1801
01:14:43,914 --> 01:14:47,961
is it pulls people up beyondwhat they would do otherwise.
1802
01:14:48,092 --> 01:14:50,224
But what blockchain
provides is a way
1803
01:14:50,355 --> 01:14:53,706
of getting hundreds ofmillions of individual actors--
1804
01:14:53,837 --> 01:14:55,752
whether they're people,
companies, agencies,
1805
01:14:55,882 --> 01:14:59,190
charities-- all to cooperateon the same global databases
1806
01:14:59,320 --> 01:15:01,801
without requiring there tobe a centralized authority,
1807
01:15:01,932 --> 01:15:04,717
and that is more or
less unprecedented.
1808
01:15:04,848 --> 01:15:06,284
It's a technology
that changes the way
1809
01:15:06,414 --> 01:15:07,894
that we govern ourselves.
1810
01:15:08,025 --> 01:15:09,592
And the hope is
that the blockchain
1811
01:15:09,722 --> 01:15:12,856
will allow people to
run their lives in a way
1812
01:15:12,986 --> 01:15:15,075
where they're not constantlybeholden to bureaucracies
1813
01:15:15,206 --> 01:15:15,859
or monopolies.
1814
01:15:18,688 --> 01:15:20,254
If we've got a fair
world in which we
1815
01:15:20,385 --> 01:15:22,126
have a genuine
accountability, where
1816
01:15:22,256 --> 01:15:23,954
we can see who the
bad actors are,
1817
01:15:24,084 --> 01:15:25,433
everybody can see
what's happening,
1818
01:15:25,564 --> 01:15:27,435
and everybody is
responsible, this
1819
01:15:27,566 --> 01:15:29,525
will produce a better world.
1820
01:15:29,655 --> 01:15:31,222
But if you get
decentralization where
1821
01:15:31,352 --> 01:15:34,181
nobody can see what's goingon and nobody is responsible,
1822
01:15:34,312 --> 01:15:35,879
you've got a worse world.
1823
01:15:36,009 --> 01:15:37,924
So we've got to thinkreally carefully about what
1824
01:15:38,055 --> 01:15:39,273
it is we're trying to stop.
1825
01:15:39,404 --> 01:15:40,710
And what we're trying
to stop is simple.
1826
01:15:40,840 --> 01:15:44,017
We're trying to stop
the abuse of power.
1827
01:15:44,148 --> 01:15:46,803
This is the second part ofthe decentralization story.
1828
01:15:46,933 --> 01:15:48,195
And the world is changing.
1829
01:15:51,198 --> 01:15:53,505
NARRATOR: Lauri must now waitfor the High Court's decision
1830
01:15:53,636 --> 01:15:56,116
on his appeal that wouldallow him to avoid extradition
1831
01:15:56,247 --> 01:15:58,858
to the United Stateswith no guarantee of when
1832
01:15:58,989 --> 01:16:01,469
that word will come.
1833
01:16:01,600 --> 01:16:04,429
And at the same time, themarket value of Bitcoin
1834
01:16:04,560 --> 01:16:07,519
and other cryptocurrenciescontinues to soar,
1835
01:16:07,650 --> 01:16:09,652
fueling both the evangelists--
1836
01:16:09,782 --> 01:16:11,915
You think we have
volume in Bitcoin now?
1837
01:16:12,045 --> 01:16:13,481
[chuckles]
1838
01:16:13,612 --> 01:16:15,266
NARRATOR: --and naysayers.
1839
01:16:15,396 --> 01:16:18,138
There is all this hype aboutblockchain, saying, OK, maybe
1840
01:16:18,269 --> 01:16:21,011
Bitcoin and cryptocurrenciesare a bubble or a fad,
1841
01:16:21,141 --> 01:16:23,709
but blockchain is reallya revolutionary industry.
1842
01:16:23,840 --> 01:16:25,319
It's been around for 10 years.
1843
01:16:25,450 --> 01:16:27,539
The only application,
just a bunch
1844
01:16:27,670 --> 01:16:29,149
of cryptocurrencies
that are a scam.
1845
01:16:29,280 --> 01:16:30,803
MAN: --markets I've ever seen.
1846
01:16:30,934 --> 01:16:34,677
MAN: --and this is just abubble, as several of your--
1847
01:16:34,807 --> 01:16:37,593
ALEX: So where is
this all going, John?
1848
01:16:37,723 --> 01:16:40,726
It's still an
experiment in process.
1849
01:16:40,857 --> 01:16:42,989
I think we're going
to see a lot of motion
1850
01:16:43,120 --> 01:16:44,730
in different directions.
1851
01:16:44,861 --> 01:16:48,821
We're going to see evolution,and chaos, and an arms race.
1852
01:16:48,952 --> 01:16:52,477
Some governments will
try to co-opt them.
1853
01:16:52,608 --> 01:16:56,220
Others will fight
it tooth and nail.
1854
01:16:56,350 --> 01:16:57,830
BILL TAI: You can
feel the energy.
1855
01:16:57,961 --> 01:17:00,050
The internet and
decentralization,
1856
01:17:00,180 --> 01:17:02,530
and the ability forinformation to flow freely
1857
01:17:02,661 --> 01:17:04,750
across communities,
is redefining things
1858
01:17:04,881 --> 01:17:07,492
because you present a fabricwhere everybody knows what's
1859
01:17:07,623 --> 01:17:09,886
going on if they want to.
1860
01:17:10,016 --> 01:17:11,975
IMOGEN HEAP: The future,it needs to be transparent,
1861
01:17:12,105 --> 01:17:13,933
it needs to be fair.
1862
01:17:14,064 --> 01:17:15,848
We're in a global time.
1863
01:17:15,979 --> 01:17:17,894
But the systems aren't
really coping very well
1864
01:17:18,024 --> 01:17:20,418
with this phenomena.
1865
01:17:20,548 --> 01:17:22,594
We have to reinvent ourselves.
1866
01:17:22,725 --> 01:17:24,161
VINAY GUPTA: In
this kind of field,
1867
01:17:24,291 --> 01:17:26,250
there's always going to bepeople trying to innovate
1868
01:17:26,380 --> 01:17:27,947
and people trying
to standardize.
1869
01:17:28,078 --> 01:17:29,688
And the struggle between theinnovators and the standards
1870
01:17:29,819 --> 01:17:31,342
people is always
going to be there.
1871
01:17:31,472 --> 01:17:32,691
But if you can't
innovate, you're
1872
01:17:32,822 --> 01:17:34,214
rolling backwards every day.
1873
01:17:34,345 --> 01:17:36,739
The blockchain has existedfive years ago today,
1874
01:17:36,869 --> 01:17:39,263
and in five years, will bethree completely different
1875
01:17:39,393 --> 01:17:42,875
generations of technology withtotally different capabilities.
1876
01:17:43,006 --> 01:17:45,399
LAURA SHIN: Here we have thistechnology that is really
1877
01:17:45,530 --> 01:17:47,488
all about decentralization.
1878
01:17:47,619 --> 01:17:50,666
But will we end up with thisdecentralized blockchain world?
1879
01:17:50,796 --> 01:17:52,493
Whether or not that
will actually pan out
1880
01:17:52,624 --> 01:17:55,018
is a big question.
1881
01:17:55,148 --> 01:17:56,759
CHRIS FABIAN: Humanity
always finds a way
1882
01:17:56,889 --> 01:17:58,804
to revert to its lowestcommon denominator, which
1883
01:17:58,935 --> 01:18:01,459
is kind of greedy,
and nasty, and fierce.
1884
01:18:01,589 --> 01:18:04,288
But when we were all on theinternet at the very beginning,
1885
01:18:04,418 --> 01:18:05,942
that was amazing, and
there was a moment
1886
01:18:06,072 --> 01:18:07,987
where that thing was
real, and pretty pure,
1887
01:18:08,118 --> 01:18:10,337
and wasn't co-opted.
1888
01:18:10,468 --> 01:18:12,775
I think we have that same thingin the space of blockchain
1889
01:18:12,905 --> 01:18:15,168
technology in general.
1890
01:18:15,299 --> 01:18:16,692
At least for a
moment, I think we can
1891
01:18:16,822 --> 01:18:20,086
use it to do something good.
1892
01:18:20,217 --> 01:18:22,523
NARRATOR: As many predicted,the cryptocurrency market
1893
01:18:22,654 --> 01:18:26,484
pops, losing over half thevalue of 2017's all-time high,
1894
01:18:26,614 --> 01:18:30,749
with Bitcoin plummeting from$20,000 to below $7,000.
1895
01:18:30,880 --> 01:18:33,012
While many abandon
ship, the true believers
1896
01:18:33,143 --> 01:18:35,014
hold course, firm
in their resolve
1897
01:18:35,145 --> 01:18:37,016
that there's a future in
blockchain technology.
1898
01:18:37,147 --> 01:18:38,801
MELISSA LEE [ON TV]:
The Bitcoin bloodbath
1899
01:18:38,931 --> 01:18:41,629
continues as the cryptocurrencycollapses to a critical level.
1900
01:18:41,760 --> 01:18:43,327
How bad could the carnage get?
1901
01:18:43,457 --> 01:18:45,590
Our Bob Pisani's at the
NYSE with the latest.
1902
01:18:45,721 --> 01:18:47,244
Hi, Bob.
1903
01:18:47,374 --> 01:18:48,724
BOB PISANI [ON TV]: Oh, thecharts are ugly, Melissa.
1904
01:18:48,854 --> 01:18:50,377
It was another rough
day for Bitcoin,
1905
01:18:50,508 --> 01:18:52,031
which has gone on
a complete round
1906
01:18:52,162 --> 01:18:55,165
trip from a little over$9,000 at the end of November
1907
01:18:55,295 --> 01:18:57,689
to $20,000 in mid-December--remember that-- and all the way
1908
01:18:57,820 --> 01:18:59,386
back down.
1909
01:18:59,517 --> 01:19:01,258
This is what technicians calla head and shoulders pop,
1910
01:19:01,388 --> 01:19:04,000
and it's a very negative--
1911
01:19:04,130 --> 01:19:06,002
J. CHRISTOPHER GIANCARLO:I'm the father of three
1912
01:19:06,132 --> 01:19:07,743
college-aged children--
1913
01:19:07,873 --> 01:19:10,789
a senior, a junior,
and a freshman.
1914
01:19:10,920 --> 01:19:12,443
During their high
school years, we
1915
01:19:12,573 --> 01:19:14,619
tried to interest them
in financial markets.
1916
01:19:14,750 --> 01:19:16,969
We haven't been able to piquetheir interest in the stock
1917
01:19:17,100 --> 01:19:18,144
market.
1918
01:19:18,275 --> 01:19:19,537
I guess they're
not much different
1919
01:19:19,667 --> 01:19:21,495
than most kids their age.
1920
01:19:21,626 --> 01:19:24,194
Well, something changed
in the last year.
1921
01:19:24,324 --> 01:19:27,153
Suddenly, they were all
talking about Bitcoin.
1922
01:19:27,284 --> 01:19:28,589
They were asking
me what I thought,
1923
01:19:28,720 --> 01:19:30,461
and should they buy it?
1924
01:19:30,591 --> 01:19:33,290
One of their oldercousins, who owns Bitcoin,
1925
01:19:33,420 --> 01:19:35,814
was telling them about itand they got all excited.
1926
01:19:35,945 --> 01:19:37,903
And I imagined that maybemembers of this committee
1927
01:19:38,034 --> 01:19:40,079
may have had some
similar experiences
1928
01:19:40,210 --> 01:19:42,429
in your own families of late.
1929
01:19:42,560 --> 01:19:46,085
It strikes me that we oweit to this new generation
1930
01:19:46,216 --> 01:19:49,436
to respect their enthusiasmabout virtual currencies
1931
01:19:49,567 --> 01:19:53,658
with a thoughtful and balancedresponse, not a dismissive one.
1932
01:19:53,789 --> 01:19:58,010
My 30-year-old niece, whobought Bitcoin years ago,
1933
01:19:58,141 --> 01:20:00,230
and she's an HODL, shesays, I'm going to own it.
1934
01:20:00,360 --> 01:20:01,884
I don't know what's
going to come of it,
1935
01:20:02,014 --> 01:20:03,320
but I want to hang onto it.
1936
01:20:03,450 --> 01:20:05,104
And she's not a fraudsteror a manipulator.
1937
01:20:05,235 --> 01:20:07,759
She's just a kid,
and believes in it.
1938
01:20:07,890 --> 01:20:10,153
And I was fascinated
talking to her.
1939
01:20:10,283 --> 01:20:12,329
And I think she representsa lot of folks that think,
1940
01:20:12,459 --> 01:20:13,939
there's something in this.
1941
01:20:14,070 --> 01:20:15,549
I want to hold on to it.
1942
01:20:15,680 --> 01:20:18,509
[traffic rumbling]
1943
01:20:28,084 --> 01:20:30,869
[atmospheric music]
1944
01:20:32,566 --> 01:20:35,352
[applause and cheering]
1945
01:20:39,486 --> 01:20:41,924
REPORTER: How do you feel?
1946
01:20:42,054 --> 01:20:45,449
We're very happy and
relieved, and we're
1947
01:20:45,579 --> 01:20:48,017
very thankful for the HighCourt, for the judges,
1948
01:20:48,147 --> 01:20:49,670
for their wisdom
and discernment.
1949
01:20:49,801 --> 01:20:51,934
I'm thankful for
all of the support
1950
01:20:52,064 --> 01:20:54,458
that we've had without which I'mnot sure I would have made it
1951
01:20:54,588 --> 01:20:54,937
this far.
1952
01:20:58,027 --> 01:20:59,680
This decision obviously
affects my life.
1953
01:20:59,811 --> 01:21:01,726
But the reason that I've
gone through this ordeal
1954
01:21:01,857 --> 01:21:05,904
is not just to save myself frombeing kidnapped and locked up
1955
01:21:06,035 --> 01:21:07,993
for 99 years in a countryI've never visited,
1956
01:21:08,124 --> 01:21:10,474
but it's to set a precedentwhereby this will not happen
1957
01:21:10,604 --> 01:21:13,694
to other people in the future.
1958
01:21:13,825 --> 01:21:15,958
You know, as we saw with theearlier part of the story
1959
01:21:16,088 --> 01:21:18,438
about the internet in
general, it was great,
1960
01:21:18,569 --> 01:21:21,311
and people who
make a lot of money
1961
01:21:21,441 --> 01:21:23,661
from things not being greatcame over, and took it over,
1962
01:21:23,791 --> 01:21:26,925
and recentralized it, andmonetized it, and it was bad.
1963
01:21:29,928 --> 01:21:31,930
The mathematics is on our side.
1964
01:21:32,061 --> 01:21:36,239
What's not on our
side is human nature.
1965
01:21:36,369 --> 01:21:39,895
You can be bound by the system,or you can mold the system
1966
01:21:40,025 --> 01:21:41,505
and change it.
1967
01:21:41,635 --> 01:21:44,943
And it's incumbent upon usto embrace the accelerated
1968
01:21:45,074 --> 01:21:52,211
pace of change, because powerand institutions have inertia.
1969
01:21:52,342 --> 01:21:53,734
They will use the
new technologies
1970
01:21:53,865 --> 01:21:57,216
once they understand themto solidify their power.
1971
01:21:57,347 --> 01:21:59,001
But if the internet
allows people
1972
01:21:59,131 --> 01:22:01,699
to reach their full potentialwith cryptography, with Bitcoin
1973
01:22:01,829 --> 01:22:05,442
and blockchain, then we'll win.
1974
01:22:05,572 --> 01:22:07,835
[upbeat electronic music]
1975
01:22:14,277 --> 01:22:15,626
One, two!
1976
01:22:15,756 --> 01:22:16,844
One, two, three, hey!
1977
01:22:20,544 --> 01:22:21,327
Hi, Alex!
1978
01:22:21,458 --> 01:22:22,763
Hi, Alex!
1979
01:22:22,894 --> 01:22:23,721
We're celebrating not
getting extradited!
1980
01:22:23,851 --> 01:22:26,463
[laughs]
149355
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