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There are many problems with what I'm holding here.
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OK.
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And I'm not just picking on the U.S. dollar I'm picking on all paper based currency.
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OK it's really important to understand the problems with traditional currency like this in order to
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really understand crypto currencies.
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From an investment perspective it's down.
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OK.
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Now in your lifetime you've seen incredible progress.
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You know the Internet has made it so easy for us to communicate and get access to information.
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You know a child in the middle of any continent today has more access and Baxter access to information
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using a smartphone than Bill Clinton did in the 1990s.
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Billions of smartphones today each have more processing power than every computer in the world used
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in 1969 to put the first person on the moon.
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People are living longer healthier and happier lives than ever before.
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You know we as a society have progressed so much because of incredible technology innovations.
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There is however one aspect of our economy that has not seen significant improvements due to technology.
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And I'll explain what that is.
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Here is a dollar bill and this dollar bill here looks like the one we use today but it's not this here
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was a dollar bill printed in nineteen fifty seven.
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OK.
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It looks identical to the ones we use today.
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OK.
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And here's another one.
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This one here looks like one as you said.
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It's not.
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This is one from 1935 my eyes not that great.
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The older I get the better.
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Yeah.
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This one here is from 1935.
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It's like crazy.
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It's identical.
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And it looks the same as this uncut sheet of U.S. dollars here.
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And here's another one of that difference.
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This one here.
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I've got two more here one from the 1800s.
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Right.
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And one from the early 1900s the whole process hasn't really changed in years.
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I mean can you believe that the archaic form of currencies here has not really seen significant innovation
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in our lifetime.
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And the whole dollar process today is pretty much the same as it was.
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You know over 100 years ago.
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OK.
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And by the way I purchased all of this cool stuff on ebay and I use them like horses and then I sell
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them back.
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Right.
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So it's kind of like I rented them.
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I've had a lot of fun with this.
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OK.
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OK.
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So you would think that these currencies I just showed you are are worth a lot of money because they're
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collector's items.
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Right.
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They're not.
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You know why.
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Because you and I have no control over how much of this paper currency is printed by governments.
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More proof.
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OK.
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This one's crazy.
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All right.
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This coin I'm holding my hand is from the year 30 right from the Roman Empire.
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OK.
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And you would think that this thing is worth a fortune.
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OK.
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But it's not it's not because so many of these things were created.
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Right.
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It's amazing.
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It's amazing so it's pretty cool though.
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Has really changed the whole process hasn't changed of money in years because governments have a monopoly
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on money.
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And why would a monopoly try to innovate.
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OK.
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And so the value of a currency is a result of the available supply of it.
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And that is crucial to talk about when it comes to crypto currencies.
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OK I'll give an example of something that's more valuable than money printed on paper.
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OK.
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All right in my hands I'm holding a piece of paper.
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Actually it's 10 pieces of paper that are fold in half and stapled together.
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And it cost me 60 cents.
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I guess that early 80s when I was a kid and I really am dating myself here.
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I bought this when I was about 10 years old growing up in Canada.
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Again I am dating myself here.
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And this comic was epic as Wolverine fought a bear in Canada why am I talking about bears in Canada
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and Wolverine right.
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Wolverine's bad ass.
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Love this guy.
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OK.
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Because Marvel printed a limited number of these comics and I knew they would not print more.
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OK so I saved it.
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Right.
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And is worth more than the paper value of holding currencies.
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It's more than this paper because the government keeps printing these things.
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Marvel doesn't print these things.
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OK this is it.
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This is the only only print they had of these things back then so it's it's it's worth a decent amount
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of money.
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Now if it was a nine point eight or 10 be worth a fortune it's not OK.
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It's not.
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OK so governments don't give you the same value proposition that Marvel Comics or DC does as governments
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can literally print hundred billion times more than you want them to.
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Of your paper currency.
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OK.
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And it's not fair because you work so hard for that currency.
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You work so hard for it and they're printing more of it printing more of it.
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Right.
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So they're devaluing your net worth your life's work.
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And the problem is we just don't we don't have control over the supply and value of money.
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And it's not fair and it's actually what we learned in 2008.
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OK.
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Now why has nobody done anything about this.
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OK.
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The answer.
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The answer is because governments again have monopolies with their currency.
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And there is no incentive for monopolies to innovate.
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Right.
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And the big banks are making too much money with the current unfair system and it's ridiculous.
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As you and I we listen to central bankers and the Federal Reserve chair people tell us what our hard
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earned money is worth.
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And I remember when I worked at Goldman Sachs on the trading floor in New York back in the late 90s
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I remember we analyzed every prophetic word that former U.S. Federal Reserve Chairman Alan Greenspan's
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Greenspan would say as as this person would basically determine the value of our net worth it's sometimes
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you need a big bang event or a storm to clear the sky.
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Thunder paper.
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And this is exactly what happens in 2008.
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OK.
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Which is why crypto currencies exist today or at least one of the reasons.
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OK.
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In 2008 we were literally within 24 hours of bank which is not working.
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And and it was chaos and it was so unusual that people actually referred to that event as as a black
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swan event a very rare occurrence.
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And historians are already referring to 2000 to 2008 as the Great Recession.
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And your children and your grandchildren will ask you what was it like living or working during the
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great recession in 2008.
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And after that period and it was so scary and interest rates are still artificially low today in many
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countries because of the disaster that took place in 2008 I remember that year my mom called me and
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asked me if she should take her money out of her bank of America account.
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You know people had no faith in currencies then as the sale of gold as a safe haven.
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Right.
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And the sale of the sale of safes right went through the roof.
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These things were sold out everywhere.
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People were terrified.
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People had no faith in our government or any government for that matter.
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In 2008 it was scary.
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And so today many people see bitcoin as the new gold and kept and the great thing about bitcoin for
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example and most crypto currencies is there's a limited amount of supply that you can actually make
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and the stuff like that.
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And unlike that paper there.
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All right.
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So I'm sure another example this one is pretty interesting.
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In my hands I'm holding a 10 trillion dollar bill OK.
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This used to be worth something.
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And this is from the Reserve Bank of Zimbabwe.
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OK.
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And what happened was in 2008 things were really scary and governments didn't know what to do.
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And they thought the only way they could get out of the Great Recession of 2008 was by printing lots
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and lots and lots more of this money kept it was chaotic it was chaotic to the extent that countries
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like Zimbabwe here printed so much more money in 2008 that the daily inflation rate was literally about
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one hundred percent right.
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Almost one percent is actually 98 percent per day at one point.
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Frightening.
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Frightening.
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Right.
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And it's not fair because you worked hard for that currency.
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So in many countries governments printed more and more and more and more money to create economic stimulus
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abets stimulus amounts.
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Right and the other generations called these stimulus events steal from us Yvette's.
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Right.
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Because the younger generation really got shaft.
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It's really sad.
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You know unemployment for people that are young under the age of 25 and a lot of countries this is 40
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percent right now.
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Right because what happened in 2008 so far is terrible.
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And older people that work their entire lives to save money were forced to go back to work or not retire.
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Make it harder for others that are younger to find employment.
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And it really was the perfect storm.
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OK this chaotic 2008 time in history you know led to the creation partially of this new digital currency
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reality that we have today because governments print too much supply of these currencies and can crypto
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currencies for the most part.
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Lot of them have a limited amount of supply and exists because partially because of that chaotic event
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in 2008.
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OK so that chaotic catalyst of 2008 led to a big change for us and it's about time.
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And if that awful time of history did not take place then there is a good chance that many crypto currencies
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would not exist today.
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And it's not fair that the money we hold can be devalued.
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Right it's out of our control.
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And and to make matters worse a massive amount of people cannot get access to money today in many countries.
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And they referred to as the bank.
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It's really tragic.
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You know for example only 20 percent of people that live in Africa have bank accounts.
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But thank God two thirds of the people that live in Africa have access to cell phones.
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OK it's it's it's getting easy to get access to crypto currencies using cell phones in the long run.
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That God and crypto currencies are different from traditional money also because they are regulated
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by mathematics.
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And I'll explain this in more detail when we discuss individual crypto currencies in a lot of detail.
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In part two of the course.
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OK here are some staggering statistics from a global charity called Oxfam 42 people.
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Yes just 42 people control the same amount of wealth as the poorest.
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Fifty percent of people worldwide crazy.
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And the world's richest 1 percent have 82 percent of the world's wealth in cash.
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And just last year billionaires increased their collective net worth by 762 billion dollars.
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That's enough to X to end extreme global poverty seven times over.
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Don't get me wrong please.
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I am a capitalist but this wealth inequality is too extreme especially since so many people are unbanked.
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It's not fair and capital elitism should come to an end as everyone gets access to crypto currencies
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in the long run OK and after the 2008 crisis governments bailed out these massive banks that were deemed
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too big to fail.
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And then a couple of years after those bankers that created the 2008 crisis.
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A couple of years after that and after they were bailed out by the governments they got record bonuses
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not fair and so many of the founders of cryptocurrency companies that I have met with you know are younger
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and rebellious and they embraced this 1960s style Berkeley type of power to the people movement approach.
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They despised what took place in 2008 and they are standing up to big brother so to speak in order to
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make the global currency process more fair for all of us which Wallach's which I will explain in much
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more detail in the next less.
19254
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