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These are the user uploaded subtitles that are being translated: 1 00:00:10,299 --> 00:00:11,263 - How you feeling? 2 00:00:11,263 --> 00:00:12,193 - Very excited. 3 00:00:14,160 --> 00:00:14,993 Making history. 4 00:00:16,670 --> 00:00:17,670 And also, there's gonna be a lot 5 00:00:17,670 --> 00:00:21,543 of very pleased people at the school. 6 00:00:22,430 --> 00:00:23,533 It's not just a tech thing. 7 00:00:23,533 --> 00:00:26,824 It's not just a new invention. 8 00:00:26,824 --> 00:00:30,330 It's something that can actually help real people. 9 00:00:30,330 --> 00:00:33,880 So, it's fun to do that and exciting. 10 00:00:33,880 --> 00:00:37,543 It gives it all meaning, not just interest. 11 00:00:39,000 --> 00:00:45,074 Advertise your product or brand here contact www.OpenSubtitles.org today 12 00:00:53,410 --> 00:00:54,630 - Living at the bottom of Africa 13 00:00:54,630 --> 00:00:56,690 can really make world affairs feel like things 14 00:00:56,690 --> 00:00:58,573 that just happen somewhere else. 15 00:00:59,710 --> 00:01:03,120 So in 2014, when I heard the word Bitcoin for the first time 16 00:01:03,120 --> 00:01:04,350 I made it my mission to find out 17 00:01:04,350 --> 00:01:06,353 what is so wrong with the way things are 18 00:01:06,353 --> 00:01:07,340 that people are trying 19 00:01:07,340 --> 00:01:10,073 to change the financial system for everyone. 20 00:01:11,050 --> 00:01:13,200 The thing about storytelling though, 21 00:01:13,200 --> 00:01:16,853 the story you expect is never the one you find. 22 00:01:18,110 --> 00:01:19,580 I reached out to friends to find out 23 00:01:19,580 --> 00:01:22,330 who knew about this thing called Bitcoin 24 00:01:22,330 --> 00:01:25,940 and I was pointed in the direction of Lorien Gamaroff. 25 00:01:25,940 --> 00:01:27,670 Within four minutes of receiving my email 26 00:01:27,670 --> 00:01:29,930 about being interviewed on Bitcoin, 27 00:01:29,930 --> 00:01:30,763 Lorien responded, saying, 28 00:01:30,763 --> 00:01:33,677 "Yes, I do believe that this will impact our lives 29 00:01:33,677 --> 00:01:35,487 "as much as the internet has done." 30 00:01:37,580 --> 00:01:40,417 So can you first explain to me what cryptocurrency is? 31 00:01:40,417 --> 00:01:44,080 - All it is, essentially, is a mechanism for being able 32 00:01:44,080 --> 00:01:47,460 to transfer digital assets without there having 33 00:01:47,460 --> 00:01:50,423 to be a duplicate of that digital asset. 34 00:01:51,310 --> 00:01:52,143 I'll give you an example. 35 00:01:52,143 --> 00:01:55,600 If you have an MP3, or a digital photo, 36 00:01:55,600 --> 00:01:57,977 it's very easy to make a copy of that digital photo or MP3 37 00:01:57,977 --> 00:02:00,030 and send it to multiple friends, 38 00:02:00,030 --> 00:02:03,050 or what this term is called, double spend. 39 00:02:03,050 --> 00:02:07,250 In 2008, an anonymous developer, or engineer, 40 00:02:07,250 --> 00:02:09,410 or financial guru devised a way 41 00:02:09,410 --> 00:02:11,600 to create a digital currency, 42 00:02:11,600 --> 00:02:13,360 which essentially solved that problem, 43 00:02:13,360 --> 00:02:14,990 where you could create a digital asset 44 00:02:14,990 --> 00:02:17,430 that could be transferred from entity to another 45 00:02:17,430 --> 00:02:18,933 and couldn't be easily copied. 46 00:02:19,920 --> 00:02:24,760 In 2011, I read a blog about an underground website 47 00:02:24,760 --> 00:02:27,610 that was using this new internet currency that was different 48 00:02:27,610 --> 00:02:29,457 from any other currency that had ever come before it, 49 00:02:29,457 --> 00:02:32,142 and I immediately decided to try and play around with it 50 00:02:32,142 --> 00:02:35,240 and see where it would go, and acquired a number of them, 51 00:02:35,240 --> 00:02:37,230 when they were worth very little. 52 00:02:37,230 --> 00:02:40,097 And then, over the years I've just seen the usage explode 53 00:02:40,097 --> 00:02:42,400 and people come around to the idea 54 00:02:42,400 --> 00:02:45,060 that this could very will be the next innovation 55 00:02:45,060 --> 00:02:46,850 that disrupts and upturns our lives, 56 00:02:46,850 --> 00:02:49,143 and has a massive positive impact. 57 00:02:50,902 --> 00:02:52,910 - There are thousands of cryptocurrencies out there 58 00:02:52,910 --> 00:02:54,730 and they're quite diverse in terms 59 00:02:54,730 --> 00:02:56,270 of what their intentions are 60 00:02:56,270 --> 00:02:57,940 and what they were designed to do. 61 00:02:57,940 --> 00:02:59,330 So, for me the discussion begins with Bitcoin. 62 00:02:59,330 --> 00:03:01,540 It's the the proto cryptocurrency. 63 00:03:01,540 --> 00:03:03,190 It's the first one that mattered. 64 00:03:04,440 --> 00:03:06,860 - When you first geek out about Bitcoin, 65 00:03:06,860 --> 00:03:09,300 and blockchain, and cryptocurrency, 66 00:03:09,300 --> 00:03:12,170 you tend to become very excited about the tech itself, 67 00:03:12,170 --> 00:03:15,730 and I think I made the mistake quite a few times early on 68 00:03:15,730 --> 00:03:18,220 of getting too technical when I'm just speaking 69 00:03:18,220 --> 00:03:21,040 to my mum, or my wife, or friends 70 00:03:21,040 --> 00:03:23,210 who just want to understand how it works. 71 00:03:23,210 --> 00:03:24,793 It's digital money. 72 00:03:26,142 --> 00:03:27,707 - In 2016, we attended the Bitcoin 73 00:03:27,707 --> 00:03:29,270 and Blockchain Africa Conference, 74 00:03:29,270 --> 00:03:31,913 so we could hear people who get it, explain it. 75 00:03:32,950 --> 00:03:35,400 There was a woman on stage from Botswana who educates people 76 00:03:35,400 --> 00:03:38,110 on both the potential and risks of Bitcoin. 77 00:03:39,790 --> 00:03:41,530 After she shared her personal story, 78 00:03:41,530 --> 00:03:43,760 I snuck over and slipped a piece of paper into her hand 79 00:03:43,760 --> 00:03:45,620 with the hastily scrawled words, 80 00:03:45,620 --> 00:03:48,603 I'm making a documentary and I would love to interview you. 81 00:03:51,380 --> 00:03:52,743 - Come, come, come. 82 00:03:56,898 --> 00:03:57,883 Welcome to my farm. 83 00:03:58,780 --> 00:04:03,400 This is a very small farm that I started in 2017, 84 00:04:03,400 --> 00:04:07,900 when the Bitcoin market went a bit up. 85 00:04:07,900 --> 00:04:09,240 I managed to buy the goats 86 00:04:09,240 --> 00:04:11,270 and I bought myself some chickens, 87 00:04:11,270 --> 00:04:12,280 and I set up the farm. 88 00:04:12,280 --> 00:04:14,460 And I also managed to buy myself this car. 89 00:04:14,460 --> 00:04:17,716 That is why it has got all these Bitcoin stickers. 90 00:04:17,716 --> 00:04:19,543 You can come and check out my goats. 91 00:04:19,543 --> 00:04:21,133 They are like way cool. 92 00:04:22,310 --> 00:04:24,240 The other ones are not yet here. 93 00:04:24,240 --> 00:04:26,353 I think they're still in the bush. 94 00:04:28,400 --> 00:04:30,580 The humble beginnings. 95 00:04:30,580 --> 00:04:32,020 I'm hoping in the future 96 00:04:32,020 --> 00:04:36,380 I'll have much, much wider farm 97 00:04:36,380 --> 00:04:38,960 as I continue in my journey of Bitcoin. 98 00:04:38,960 --> 00:04:40,383 So this is a Bitcoin farm. 99 00:04:41,440 --> 00:04:43,406 But instead of mining Bitcoin, I'm mining goats. 100 00:04:45,410 --> 00:04:48,740 The piece of land, I got it in 2011, 101 00:04:48,740 --> 00:04:51,840 so from 2011 until 2017 there was nothing happening. 102 00:04:51,840 --> 00:04:54,090 I couldn't clean it up because I didn't have money. 103 00:04:54,090 --> 00:04:55,490 Some of my goats are coming. 104 00:04:57,000 --> 00:04:58,530 It's one of my passions 105 00:04:58,530 --> 00:05:00,990 besides teaching people about Bitcoin. 106 00:05:00,990 --> 00:05:02,770 My husband is the one who is always coming here 107 00:05:02,770 --> 00:05:03,603 most of the time 108 00:05:03,603 --> 00:05:06,860 because as for me, I'm always busy doing my education 109 00:05:06,860 --> 00:05:10,490 and doing my Satoshi Centre, and sometimes touring. 110 00:05:10,490 --> 00:05:13,480 People have flooded Africa with a lot of scams 111 00:05:13,480 --> 00:05:15,800 and a lot of our people are falling into those scams. 112 00:05:15,800 --> 00:05:18,120 So I'm not basically only focused on Botswana. 113 00:05:18,120 --> 00:05:20,153 Where education is needed, I go. 114 00:05:24,832 --> 00:05:25,665 The whole idea of the farm 115 00:05:25,665 --> 00:05:27,980 is so that I can be able to sustain myself. 116 00:05:27,980 --> 00:05:29,440 I'm just educating people 117 00:05:29,440 --> 00:05:32,340 without making any profit out of it. 118 00:05:32,340 --> 00:05:34,580 For me, education is very important 119 00:05:34,580 --> 00:05:35,890 even though I get stressed 120 00:05:35,890 --> 00:05:39,600 when my life is not working according to plan, 121 00:05:39,600 --> 00:05:40,630 and my vision for the Satoshi Centre 122 00:05:40,630 --> 00:05:43,580 is not really accomplished, I would say, 123 00:05:43,580 --> 00:05:46,050 but I'm always grateful for the Bitcoin community 124 00:05:46,050 --> 00:05:48,880 because they are really a super, amazing family. 125 00:05:48,880 --> 00:05:51,323 Everyone in the Bitcoin space, they're amazing. 126 00:05:54,230 --> 00:05:55,270 - The original document 127 00:05:55,270 --> 00:05:57,660 that outlined the vision to reinvent the world of finance 128 00:05:57,660 --> 00:06:00,150 and technology was released in 2008 129 00:06:00,150 --> 00:06:02,473 against the backdrop of the financial crisis. 130 00:06:03,520 --> 00:06:04,657 In order to understand all of that, 131 00:06:04,657 --> 00:06:07,620 the most obvious place to start was money. 132 00:06:07,620 --> 00:06:08,453 What is money? 133 00:06:08,453 --> 00:06:09,650 Where did it come from? 134 00:06:09,650 --> 00:06:12,993 And why isn't the way it works working for us anymore? 135 00:06:15,690 --> 00:06:17,703 - One of the first things we figured out to do 136 00:06:17,703 --> 00:06:19,070 that really distinguished us 137 00:06:19,070 --> 00:06:22,400 from the other animals on this planet was invent language 138 00:06:22,400 --> 00:06:24,830 and a way of communicating with each other 139 00:06:24,830 --> 00:06:27,830 that could convey very complicated ideas. 140 00:06:27,830 --> 00:06:31,500 We could have armies of 100s or 1000s of individuals, 141 00:06:31,500 --> 00:06:33,710 where other great apes would only be able 142 00:06:33,710 --> 00:06:37,690 to organize in clusters of up to about 100 individuals. 143 00:06:37,690 --> 00:06:38,840 So, that gave us an edge. 144 00:06:38,840 --> 00:06:42,100 Language was extremely powerful as an organizing mechanism, 145 00:06:42,100 --> 00:06:43,960 but the thing we needed next was a way 146 00:06:43,960 --> 00:06:46,550 of making our trust in each other portable. 147 00:06:46,550 --> 00:06:47,970 We used seashells. 148 00:06:47,970 --> 00:06:51,350 Baboon bones were a popular form of currency in Africa, 149 00:06:51,350 --> 00:06:55,290 but money is, and always has been, a form of an IOU note. 150 00:06:55,290 --> 00:06:57,310 I could give you something and you could trust that 151 00:06:57,310 --> 00:07:01,090 that thing had value because society believed it did. 152 00:07:01,090 --> 00:07:04,700 Things like dollars and rands, we call those fiat currencies 153 00:07:04,700 --> 00:07:07,820 and fiat is a Latin word that means 'let it be done'. 154 00:07:07,820 --> 00:07:09,560 It basically means that they have value 155 00:07:09,560 --> 00:07:11,290 because governments say they do. 156 00:07:11,290 --> 00:07:13,890 Governments tell us that you will use this money. 157 00:07:13,890 --> 00:07:16,410 You will accept it as repayment of debt 158 00:07:16,410 --> 00:07:18,680 and you will pay your taxes in this currency. 159 00:07:18,680 --> 00:07:21,610 So, it really is just is because we say so. 160 00:07:21,610 --> 00:07:23,613 There was a period where fiat currencies 161 00:07:23,613 --> 00:07:25,650 were backed by the gold standard, 162 00:07:25,650 --> 00:07:27,830 and now really money is just backed 163 00:07:27,830 --> 00:07:30,910 by a government's ability to enforce taxation 164 00:07:30,910 --> 00:07:32,340 within its borders. 165 00:07:32,340 --> 00:07:35,300 Governments, or their central banking authorities, 166 00:07:35,300 --> 00:07:37,930 can print as much money as they want to. 167 00:07:37,930 --> 00:07:39,290 The decision to print money 168 00:07:39,290 --> 00:07:42,130 is something that lies with a few individuals. 169 00:07:42,130 --> 00:07:45,560 It's open to flawed decision making and really it's fair 170 00:07:45,560 --> 00:07:47,953 to say that fiat money isn't backed by anything. 171 00:07:49,390 --> 00:07:51,270 - For a time, Bitcoin felt like a lot of talk 172 00:07:51,270 --> 00:07:52,910 and very little action, 173 00:07:52,910 --> 00:07:55,460 but Lorien was taking Bitcoin out of academia, 174 00:07:55,460 --> 00:07:56,293 out of the future, 175 00:07:56,293 --> 00:07:59,800 and creating a real world use for it in 2015, 176 00:07:59,800 --> 00:08:02,560 something tangible for the world to see. 177 00:08:02,560 --> 00:08:03,750 - If you consume electricity, 178 00:08:03,750 --> 00:08:05,940 you're gonna have a meter installed at your property. 179 00:08:05,940 --> 00:08:07,960 There's two modes that that meter can be in, 180 00:08:07,960 --> 00:08:09,890 either postpaid or prepaid. 181 00:08:09,890 --> 00:08:12,510 Postpaid is where you just consume the utility 182 00:08:12,510 --> 00:08:14,190 and at the end of the month somebody will come 183 00:08:14,190 --> 00:08:15,400 and read your meter and then send you a bill 184 00:08:15,400 --> 00:08:17,050 and then you pay. 185 00:08:17,050 --> 00:08:19,675 You're consuming first and then you pay. 186 00:08:19,675 --> 00:08:22,200 Now prepaid meters are trying to solve the problem 187 00:08:22,200 --> 00:08:24,370 where people are consuming and then not paying, 188 00:08:24,370 --> 00:08:27,450 which is a problem we have, and it's showing itself 189 00:08:27,450 --> 00:08:31,047 in our energy provider, Eskom, where they say 190 00:08:31,047 --> 00:08:34,030 they don't have enough money to maintain the power stations 191 00:08:34,030 --> 00:08:36,265 because they can't recover from the municipalities. 192 00:08:36,265 --> 00:08:37,630 The municipalities can't recover 193 00:08:37,630 --> 00:08:39,370 because nobody wants to pay for the utility. 194 00:08:39,370 --> 00:08:40,900 They've already consumed it. 195 00:08:40,900 --> 00:08:42,740 So, they're trying to close that gap 196 00:08:42,740 --> 00:08:44,860 by switching all their customers on to prepaid, 197 00:08:44,860 --> 00:08:48,300 so they can't consume unless they've paid. 198 00:08:48,300 --> 00:08:50,327 But it then introduces another problem 199 00:08:50,327 --> 00:08:52,620 from a consumer's point of view. 200 00:08:52,620 --> 00:08:55,610 At least 80% of Africans are unbanked. 201 00:08:55,610 --> 00:08:58,610 If they want to make a payment they have to use cash. 202 00:08:58,610 --> 00:09:00,513 Obviously now, the costs are increased 203 00:09:00,513 --> 00:09:03,030 because the vendor has costs, 204 00:09:03,030 --> 00:09:05,820 and there's traveling costs, security costs. 205 00:09:05,820 --> 00:09:07,430 So, although prepaid systems 206 00:09:07,430 --> 00:09:10,560 will solve the recovery from the utility's point of view, 207 00:09:10,560 --> 00:09:13,254 it doesn't solve anything from the consumer's point of view. 208 00:09:13,254 --> 00:09:14,600 Bitcoin is a payment system, 209 00:09:14,600 --> 00:09:16,410 which is an electronic payment system, 210 00:09:16,410 --> 00:09:18,610 that is outside of the banking system. 211 00:09:18,610 --> 00:09:22,257 Anybody who has an app on their mobile phone, 212 00:09:22,257 --> 00:09:24,060 it doesn't even have to be a smartphone, 213 00:09:24,060 --> 00:09:26,620 they can easily become part of the Bitcoin economy 214 00:09:26,620 --> 00:09:29,230 and have access to electronic payments. 215 00:09:29,230 --> 00:09:32,380 So, it's just a common sense thing if you think about it, 216 00:09:32,380 --> 00:09:36,680 that being able to make Bitcoin a payment method 217 00:09:36,680 --> 00:09:41,150 for a pre-payment system opens up that massive market, 218 00:09:41,150 --> 00:09:44,180 and it has opportunity to drastically reduce costs 219 00:09:44,180 --> 00:09:45,563 and increase efficiency, 220 00:09:46,410 --> 00:09:49,990 at least from the perspective of the consumer. 221 00:09:49,990 --> 00:09:53,160 So now, there's a solution, Bitcoin, 222 00:09:53,160 --> 00:09:55,671 and applied to smart metering 223 00:09:55,671 --> 00:09:58,130 can solve a massive problem throughout Africa 224 00:09:58,130 --> 00:10:00,317 as well as Latin America and Asia Pacific. 225 00:10:06,140 --> 00:10:10,475 - I started my journey with Bitcoin 226 00:10:10,475 --> 00:10:12,477 in a little bit of a sad way. 227 00:10:14,490 --> 00:10:15,750 - Can you tell me that story? 228 00:10:15,750 --> 00:10:20,004 - My son, right here on the wall. 229 00:10:20,004 --> 00:10:24,020 In 2007, I gave birth to a baby boy. 230 00:10:24,020 --> 00:10:27,530 His name was called Pako, which means praise. 231 00:10:27,530 --> 00:10:29,260 He was born with a heart defect 232 00:10:29,260 --> 00:10:33,520 called hypertrophic obstructive cardiomyopathy. 233 00:10:33,520 --> 00:10:35,620 I was looking for ways in which I can raise money 234 00:10:35,620 --> 00:10:38,190 and probably take him overseas. 235 00:10:38,190 --> 00:10:40,950 It was kind of difficult here in Botswana 236 00:10:40,950 --> 00:10:43,510 for them to promise me anything. 237 00:10:43,510 --> 00:10:44,670 One time, the doctor told me 238 00:10:44,670 --> 00:10:47,213 that there's literally nothing that they can do. 239 00:10:49,320 --> 00:10:51,710 When we brought to South Africa, I was very happy. 240 00:10:51,710 --> 00:10:54,000 I said my son would get help. 241 00:10:54,000 --> 00:10:56,937 But they said to me, "For us to be able to help your son, 242 00:10:56,937 --> 00:11:00,157 "we finish first with the list that is in South Africa 243 00:11:00,157 --> 00:11:02,057 "for children who need transplants." 244 00:11:03,880 --> 00:11:06,330 So I went online to try and do freelancing 245 00:11:06,330 --> 00:11:08,330 so maybe I can be able to raise more funds 246 00:11:08,330 --> 00:11:09,373 to be help my child. 247 00:11:10,270 --> 00:11:11,810 Then I remember I got across a survey 248 00:11:11,810 --> 00:11:13,270 where they say you can do a survey 249 00:11:13,270 --> 00:11:15,940 and you can be paid in Bitcoin. 250 00:11:15,940 --> 00:11:19,890 I went through that, worked my heart out. 251 00:11:19,890 --> 00:11:23,180 I never got any Bitcoins from the work that I did. 252 00:11:23,180 --> 00:11:25,040 A lot of things that I met were scams. 253 00:11:25,040 --> 00:11:27,300 One scam after another. 254 00:11:27,300 --> 00:11:32,300 And then in April, on the 4th, my son died, so yeah. 255 00:11:42,422 --> 00:11:43,550 The first time I heard about Bitcoin 256 00:11:43,550 --> 00:11:45,910 was to raise money for my son. 257 00:11:45,910 --> 00:11:48,330 So when he died, I felt like I have lost the purpose 258 00:11:48,330 --> 00:11:50,180 for why I should work online. 259 00:11:50,180 --> 00:11:52,163 So I just stopped. 260 00:11:53,500 --> 00:11:55,130 Something was just nagging me in my head, 261 00:11:55,130 --> 00:11:57,190 like you need to go back to that Bitcoin thing 262 00:11:57,190 --> 00:12:01,370 and look at it and see if it can be of any worth. 263 00:12:01,370 --> 00:12:03,820 The more I read, the more I get learned. 264 00:12:03,820 --> 00:12:06,540 I decided let me take another step further. 265 00:12:06,540 --> 00:12:08,360 It's no longer about my son, 266 00:12:08,360 --> 00:12:10,880 now it's about changing my country. 267 00:12:10,880 --> 00:12:12,780 It's about changing the people. 268 00:12:12,780 --> 00:12:14,000 I will group together people 269 00:12:14,000 --> 00:12:16,499 and I will teach them about Bitcoin. 270 00:12:16,499 --> 00:12:19,460 So 2013, I did my first meet-up. 271 00:12:19,460 --> 00:12:21,710 But before the meet-up, I did a video, 272 00:12:21,710 --> 00:12:22,840 which I put on YouTube. 273 00:12:22,840 --> 00:12:25,720 I did an old t-shirt with my Bitcoin address 274 00:12:25,720 --> 00:12:27,810 and I was like, I want to work for this company. 275 00:12:27,810 --> 00:12:30,890 Even by then I don't even understand what Bitcoin was. 276 00:12:30,890 --> 00:12:32,890 Like for me, it was more like a company. 277 00:12:34,160 --> 00:12:38,200 Then 2014, my group was growing 278 00:12:38,200 --> 00:12:40,940 and I kept on educating people about Bitcoin 279 00:12:40,940 --> 00:12:42,813 from that moment onwards. 280 00:12:46,690 --> 00:12:49,330 - So why can we trust that crypto 281 00:12:49,330 --> 00:12:51,220 is worth something? 282 00:12:51,220 --> 00:12:55,160 - Bitcoin, as a primary example, has a finite supply, 283 00:12:55,160 --> 00:12:57,750 which makes it a deflationary currency. 284 00:12:57,750 --> 00:13:01,150 It actually in very real terms is scarcer than gold. 285 00:13:01,150 --> 00:13:03,440 There's no central authority that can decide 286 00:13:03,440 --> 00:13:06,610 to raise interest rates or to print more money 287 00:13:06,610 --> 00:13:08,450 as a part of quantitative easing. 288 00:13:08,450 --> 00:13:10,540 The Bitcoin network runs itself. 289 00:13:10,540 --> 00:13:13,080 Once the network was set in motion, 290 00:13:13,080 --> 00:13:16,503 that system runs by consensus. 291 00:13:18,500 --> 00:13:21,682 - Can you tell me about Usizo? 292 00:13:21,682 --> 00:13:24,650 - Sure, imagine a poor school in Africa. 293 00:13:24,650 --> 00:13:26,800 They have a Bitcoin meter. 294 00:13:26,800 --> 00:13:28,770 Anybody from anywhere in the world could pay 295 00:13:28,770 --> 00:13:32,210 for a week or month's worth of electricity 296 00:13:32,210 --> 00:13:36,343 directly without having to go to that organization. 297 00:13:37,312 --> 00:13:39,930 I actually thought instead of just talking about something, 298 00:13:39,930 --> 00:13:41,180 why don't I go and do it? 299 00:13:43,328 --> 00:13:44,440 - What does Usizo mean? 300 00:13:44,440 --> 00:13:47,264 - Usizo is a Zulu word, it means help. 301 00:13:49,350 --> 00:13:50,340 The whole point of this project 302 00:13:50,340 --> 00:13:52,970 is to kind of relieve the burden of the electricity. 303 00:13:52,970 --> 00:13:54,860 I mean, obviously there's a lot more things 304 00:13:54,860 --> 00:13:56,380 to be paid for in the school 305 00:13:56,380 --> 00:13:58,590 and these schools have small budgets. 306 00:13:58,590 --> 00:14:01,620 If they can have that burden lifted a little, 307 00:14:01,620 --> 00:14:05,430 where they don't have to actually pay for the utilities, 308 00:14:05,430 --> 00:14:08,120 then they can then spend what little they have 309 00:14:08,120 --> 00:14:09,730 on other things. 310 00:14:09,730 --> 00:14:11,130 One of the struggles that we've had 311 00:14:11,130 --> 00:14:14,810 is trying to get a metering company to agree to the project. 312 00:14:14,810 --> 00:14:16,620 A lot of these metering companies make a lot of money 313 00:14:16,620 --> 00:14:18,450 on the vending solutions they've supplied, 314 00:14:18,450 --> 00:14:23,450 taking the fees from the fiat transactions. 315 00:14:23,860 --> 00:14:26,210 Now, having a blockchain-based system means 316 00:14:26,210 --> 00:14:30,300 that the funds go directly through to the meter, 317 00:14:30,300 --> 00:14:32,210 and so the metering companies that we've been dealing with 318 00:14:32,210 --> 00:14:33,790 weren't willing to go along with the project. 319 00:14:33,790 --> 00:14:35,740 So, it was quite an uphill struggle, 320 00:14:35,740 --> 00:14:38,822 but luckily we have found some enlightened partners. 321 00:14:38,822 --> 00:14:41,313 We've got about two bars out of the three. 322 00:14:43,230 --> 00:14:45,280 So, I think communication should be fine. 323 00:14:49,060 --> 00:14:50,140 But we also have an antenna. 324 00:14:50,140 --> 00:14:52,730 So what we can do is perhaps bring an antenna through here 325 00:14:52,730 --> 00:14:54,933 just to boost the signal. 326 00:14:55,773 --> 00:14:57,430 So, once we get the donation going through, 327 00:14:57,430 --> 00:15:00,350 and the meter can pick up the payment on the blockchain, 328 00:15:00,350 --> 00:15:03,540 the next step is for the actual meter to switch on, 329 00:15:03,540 --> 00:15:05,343 and then we should see the school light up. 330 00:15:05,343 --> 00:15:06,920 It will be hard to see now, 331 00:15:06,920 --> 00:15:09,490 but at least we'll see something happen, 332 00:15:09,490 --> 00:15:12,990 and then on Monday night when it's all pitch-dark, 333 00:15:12,990 --> 00:15:15,910 I think it'll be quite spectacular, when everything goes on. 334 00:15:15,910 --> 00:15:18,227 That's the theory, very exciting. 335 00:15:20,060 --> 00:15:24,180 - The blockchain is the operating system that it runs on. 336 00:15:24,180 --> 00:15:26,440 So, you can see it as your Windows, 337 00:15:26,440 --> 00:15:29,370 or your Linux, or macOS X. 338 00:15:29,370 --> 00:15:32,290 The software layer is the blockchain 339 00:15:32,290 --> 00:15:36,900 and Bitcoin is an app that runs on top of the blockchain. 340 00:15:36,900 --> 00:15:39,060 - Blockchain is the magic behind the money, 341 00:15:39,060 --> 00:15:41,360 but really it's just a decentralized database 342 00:15:41,360 --> 00:15:42,880 stored on a very large network 343 00:15:42,880 --> 00:15:45,060 of computers all over the world. 344 00:15:45,060 --> 00:15:47,100 It is the technology that underpins Bitcoin 345 00:15:47,100 --> 00:15:48,570 and other cryptocurrencies, 346 00:15:48,570 --> 00:15:51,140 but it's not just for monetary transactions. 347 00:15:51,140 --> 00:15:53,680 You can use it to store data like patents or wills, 348 00:15:53,680 --> 00:15:55,210 or to exchange anything of value, 349 00:15:55,210 --> 00:15:58,763 such as products, properties, services and even votes. 350 00:16:00,140 --> 00:16:03,650 The authenticity of the exchange of value, or transactions, 351 00:16:03,650 --> 00:16:05,730 is verified by the community as a whole, 352 00:16:05,730 --> 00:16:08,330 rather than by a single entity, removing the risk 353 00:16:08,330 --> 00:16:10,480 of a single point of failure in the system. 354 00:16:11,390 --> 00:16:14,830 Each transaction is recorded on a public distributed ledger 355 00:16:14,830 --> 00:16:19,733 that can be viewed by anyone in the world. 356 00:16:19,733 --> 00:16:22,600 - The blockchain is a decentralized system, 357 00:16:22,600 --> 00:16:24,630 and the strength of the blockchain 358 00:16:24,630 --> 00:16:27,020 is that everybody's checking everybody else. 359 00:16:27,020 --> 00:16:30,870 No single institution is in charge of this information. 360 00:16:30,870 --> 00:16:33,900 Now that differs from the current financial system 361 00:16:33,900 --> 00:16:36,480 that we actually do have all over the world. 362 00:16:36,480 --> 00:16:37,600 In the case of South Africa, 363 00:16:37,600 --> 00:16:40,120 in the center of our financial system, 364 00:16:40,120 --> 00:16:42,000 is the South African Reserve Bank. 365 00:16:42,000 --> 00:16:45,080 And the Reserve Bank checks all the other banks, 366 00:16:45,080 --> 00:16:47,200 and all the other banks check us. 367 00:16:47,200 --> 00:16:50,290 And that's the difference between a decentralized system, 368 00:16:50,290 --> 00:16:53,363 the blockchain, for example, and a centralized system. 369 00:16:54,230 --> 00:16:57,040 If I, for example, want to give you government money, 370 00:16:57,040 --> 00:16:59,900 or Central Bank money, and I do a transfer 371 00:16:59,900 --> 00:17:03,010 from my cellphone to your cellphone, 372 00:17:03,010 --> 00:17:05,770 it is impossible for me to transfer money 373 00:17:05,770 --> 00:17:09,830 from one bank account directly into another bank account. 374 00:17:09,830 --> 00:17:11,720 We think that is what happens, 375 00:17:11,720 --> 00:17:16,270 but what really happens is that I send a message to my bank, 376 00:17:16,270 --> 00:17:18,520 which will send a message to the Central Bank, 377 00:17:18,520 --> 00:17:20,930 which will send a message to your bank 378 00:17:20,930 --> 00:17:23,490 to make a deposit into your bank account. 379 00:17:23,490 --> 00:17:26,240 So there's somebody else always in charge. 380 00:17:26,240 --> 00:17:28,430 There's always a middle man somewhere 381 00:17:28,430 --> 00:17:30,784 between my account and your account. 382 00:17:33,145 --> 00:17:35,940 - So who invented blockchain and Bitcoin? 383 00:17:35,940 --> 00:17:38,595 - The creator of Bitcoin, the cryptocurrency 384 00:17:38,595 --> 00:17:41,310 and the technology, is Satoshi Nakamoto. 385 00:17:41,310 --> 00:17:43,420 People think it's a group of people, 386 00:17:43,420 --> 00:17:46,170 or it could be an individual, he's a complete mystery. 387 00:17:46,170 --> 00:17:47,930 No-one knows who he is. 388 00:17:47,930 --> 00:17:49,410 People have their suspicions. 389 00:17:49,410 --> 00:17:51,620 I have my suspicions as well. 390 00:17:51,620 --> 00:17:52,800 Several people have come out 391 00:17:52,800 --> 00:17:55,470 to claim that they are Satoshi Nakamoto. 392 00:17:55,470 --> 00:17:57,430 I think it's quite nice that it's a mystery. 393 00:17:57,430 --> 00:17:59,180 I like the fact that I don't know who it is 394 00:17:59,180 --> 00:18:00,780 and I think we would be disappointed 395 00:18:00,780 --> 00:18:02,403 if we found out who it was. 396 00:18:03,370 --> 00:18:05,010 - So why did you name your dog Satoshi? 397 00:18:06,827 --> 00:18:08,209 - Bitcoin and cryptocurrency, 398 00:18:08,209 --> 00:18:11,360 and blockchain technology has taken over my life. 399 00:18:11,360 --> 00:18:14,783 I love Bitcoin, I really do, and I like what it stands for, 400 00:18:16,184 --> 00:18:18,251 and the name suits him completely. 401 00:18:22,210 --> 00:18:24,099 - I'll organize small talks and I'll go around. 402 00:18:24,099 --> 00:18:27,230 I've been in Gabarone, and I went to Francestown 403 00:18:27,230 --> 00:18:29,250 to go and teach people about Bitcoin. 404 00:18:29,250 --> 00:18:31,740 I met students who are into IT. 405 00:18:31,740 --> 00:18:33,850 We talked blockchain and all that 406 00:18:33,850 --> 00:18:36,740 and I began to tell them about the possibility 407 00:18:36,740 --> 00:18:40,020 of changing the way things are in our country. 408 00:18:40,020 --> 00:18:41,933 The way things are in the world. 409 00:18:43,200 --> 00:18:46,180 I was inspired by Satoshi Nakamoto, 410 00:18:46,180 --> 00:18:49,270 liberating the people from what was happening 411 00:18:49,270 --> 00:18:50,890 during the financial crisis, 412 00:18:50,890 --> 00:18:53,500 coming up with something that would really help people. 413 00:18:53,500 --> 00:18:57,200 The Satoshi Centre's vision was to create a community lab 414 00:18:57,200 --> 00:19:00,430 where people can come and learn about Bitcoin 415 00:19:00,430 --> 00:19:02,563 and also be able to be very creative. 416 00:19:03,670 --> 00:19:07,060 - Somebody came up with this idea of making it possible 417 00:19:07,060 --> 00:19:10,260 to trust the record of ownership of money, 418 00:19:10,260 --> 00:19:14,020 without trusting any individual in the ecosystem 419 00:19:14,020 --> 00:19:15,860 that makes things work together 420 00:19:15,860 --> 00:19:18,740 and that is such a clever invention, 421 00:19:18,740 --> 00:19:21,050 that we have to make it work 422 00:19:21,050 --> 00:19:24,350 and make it valuable in the way we apply it to society. 423 00:19:24,350 --> 00:19:27,720 If you compare it to the traditional financial system, 424 00:19:27,720 --> 00:19:30,640 I don't think any of us really get excited 425 00:19:30,640 --> 00:19:32,210 about going to our bank, 426 00:19:32,210 --> 00:19:36,010 or excited about logging onto a banking system. 427 00:19:36,010 --> 00:19:38,630 One of the disadvantages of cryptocurrency 428 00:19:38,630 --> 00:19:40,940 is the complexity stall, 429 00:19:40,940 --> 00:19:44,220 that we're working with a very rough, technical thing 430 00:19:44,220 --> 00:19:45,740 where you need to understand things 431 00:19:45,740 --> 00:19:48,450 like the transaction fees and things like that. 432 00:19:48,450 --> 00:19:50,350 But, to be fair, if you compare it 433 00:19:50,350 --> 00:19:52,110 to the traditional financial system, 434 00:19:52,110 --> 00:19:54,900 that's not really clear as crystal either. 435 00:19:54,900 --> 00:19:56,870 It's really very difficult to understand 436 00:19:56,870 --> 00:19:59,420 how banking fees are going to apply to you, 437 00:19:59,420 --> 00:20:02,510 what's it going to cost to transfer 10 000 rands 438 00:20:02,510 --> 00:20:04,010 to a U.S. bank account. 439 00:20:04,010 --> 00:20:06,715 Things like that are also very, very complex. 440 00:20:08,990 --> 00:20:11,030 - What we're gonna basically do is an auction. 441 00:20:11,030 --> 00:20:14,050 The item in question is this over here, 442 00:20:14,050 --> 00:20:15,687 which is a 100 rand note. 443 00:20:15,687 --> 00:20:18,840 You're gonna be bidding for this 100 rand note. 444 00:20:18,840 --> 00:20:19,960 It's a standard auction. 445 00:20:19,960 --> 00:20:21,800 Whoever wins the auction gets the 100 rand note. 446 00:20:21,800 --> 00:20:24,880 A slight switch though on the traditional auction model 447 00:20:24,880 --> 00:20:27,030 is that the person who comes second 448 00:20:27,030 --> 00:20:29,130 has to pay whatever their bid was, 449 00:20:29,130 --> 00:20:30,490 but they don't get the note. 450 00:20:30,490 --> 00:20:31,990 So, I'm gonna open it up at 10 rand. 451 00:20:31,990 --> 00:20:34,530 Would anybody pay me 10 rand for a 100 rand note? 452 00:20:34,530 --> 00:20:35,363 Who's first? 453 00:20:35,363 --> 00:20:37,183 10 rand, we got 10 rand in the back. 454 00:20:38,940 --> 00:20:40,573 180 rand going once, 455 00:20:41,450 --> 00:20:43,760 180 rand going twice. 456 00:20:43,760 --> 00:20:46,530 Sold for 180 rand. 457 00:20:46,530 --> 00:20:48,550 You can come and settle afterwards 458 00:20:48,550 --> 00:20:49,970 and the person who came second 459 00:20:49,970 --> 00:20:51,695 needs to settle with me as well. 460 00:20:52,990 --> 00:20:56,210 It's not that central financial authorities were a bad idea. 461 00:20:56,210 --> 00:20:58,200 It gave us a way of scaling up to what now 462 00:20:58,200 --> 00:21:00,040 is the global financial system. 463 00:21:00,040 --> 00:21:02,380 It gave us a way of trading with each other. 464 00:21:02,380 --> 00:21:04,090 You could travel to the other side of the world 465 00:21:04,090 --> 00:21:06,200 and you could start to trade with people there, 466 00:21:06,200 --> 00:21:09,430 and that was fantastic, but where it has failed us, 467 00:21:09,430 --> 00:21:12,200 for example, is where human greed has been able 468 00:21:12,200 --> 00:21:15,200 to manipulate the system, to put it quite bluntly. 469 00:21:15,200 --> 00:21:16,920 That's the second highest price 470 00:21:16,920 --> 00:21:18,800 I've ever gotten for a 100 rand note. 471 00:21:18,800 --> 00:21:20,440 It's a great game for me 472 00:21:20,440 --> 00:21:24,880 because I essentially now have made 310 rand 473 00:21:24,880 --> 00:21:27,520 and parted with 100 rand, right? 474 00:21:27,520 --> 00:21:29,700 The game of course is rigged. 475 00:21:29,700 --> 00:21:32,240 It's designed so that I'm gonna win 476 00:21:32,240 --> 00:21:34,660 and it has to do with the irrational mindset 477 00:21:34,660 --> 00:21:36,100 people have around money. 478 00:21:36,100 --> 00:21:37,250 We all remember what happened 479 00:21:37,250 --> 00:21:39,760 with the financial crisis in 2009. 480 00:21:39,760 --> 00:21:41,810 In that situation, we were reminded again 481 00:21:41,810 --> 00:21:43,630 that banks can fail. 482 00:21:43,630 --> 00:21:45,610 We have a fractional reserve banking system 483 00:21:45,610 --> 00:21:48,480 in most countries where banks don't actually 484 00:21:48,480 --> 00:21:49,830 have to have all of the money 485 00:21:49,830 --> 00:21:52,220 that they're storing on behalf of their customers, 486 00:21:52,220 --> 00:21:55,540 they only need to keep enough of that money around 487 00:21:55,540 --> 00:21:58,250 that they can satisfy all of the withdrawals requested 488 00:21:58,250 --> 00:21:59,920 in any given period. 489 00:21:59,920 --> 00:22:04,120 When a bank gives you a loan to buy a house, for example, 490 00:22:04,120 --> 00:22:05,810 they don't have to have that money either. 491 00:22:05,810 --> 00:22:09,110 That's basically money they can make out of thin air. 492 00:22:09,110 --> 00:22:10,630 But when you have a run on the bank, 493 00:22:10,630 --> 00:22:11,670 when there's a crisis 494 00:22:11,670 --> 00:22:13,190 and everybody tries to pull their money 495 00:22:13,190 --> 00:22:15,300 out of the banking system at the same time, 496 00:22:15,300 --> 00:22:17,070 banks don't have that money 497 00:22:17,070 --> 00:22:19,160 and that causes them to collapse. 498 00:22:19,160 --> 00:22:20,490 Governments then stand 499 00:22:20,490 --> 00:22:22,840 as what we call a lender of last resort. 500 00:22:22,840 --> 00:22:25,460 So, governments say, if the bank doesn't have enough money 501 00:22:25,460 --> 00:22:27,370 to sort out all of its customers, 502 00:22:27,370 --> 00:22:30,030 we'll step in and we'll lend them the money to do that. 503 00:22:30,030 --> 00:22:32,680 But, of course, that money needs to come from somewhere too, 504 00:22:32,680 --> 00:22:35,760 and so what happened in 2009 was you had banks, 505 00:22:35,760 --> 00:22:36,960 which didn't have enough money 506 00:22:36,960 --> 00:22:39,430 to pay all of the people trying to withdraw their money. 507 00:22:39,430 --> 00:22:41,240 The U.S. government didn't have enough money 508 00:22:41,240 --> 00:22:43,380 to act as a lender of last resort, 509 00:22:43,380 --> 00:22:47,740 and so, the U.S. taxpayer effectively had to bail out a bank 510 00:22:47,740 --> 00:22:50,040 with a tax-free, non-reversible loan 511 00:22:50,040 --> 00:22:52,500 that never had to be paid back to the taxpayer. 512 00:22:52,500 --> 00:22:55,050 Now, it doesn't really matter how you present that story. 513 00:22:55,050 --> 00:22:56,500 It doesn't strike me as fair. 514 00:22:57,630 --> 00:22:59,630 - Every country's economy is intertwined 515 00:22:59,630 --> 00:23:01,840 with every other country's economy, 516 00:23:01,840 --> 00:23:03,790 imports, exports, investments, 517 00:23:03,790 --> 00:23:05,670 and the world reserve currency, 518 00:23:05,670 --> 00:23:08,340 meant that the financial crisis in America 519 00:23:08,340 --> 00:23:11,150 became the global financial crisis. 520 00:23:11,150 --> 00:23:12,960 The saying before 2008 521 00:23:12,960 --> 00:23:15,730 was that the banks were too big to fail, 522 00:23:15,730 --> 00:23:18,253 but the bigger they are, the harder they fall. 523 00:23:19,220 --> 00:23:20,260 Over a decade later, 524 00:23:20,260 --> 00:23:22,120 there are now banks that are even bigger 525 00:23:22,120 --> 00:23:23,520 than the too-big-to-fail banks 526 00:23:23,520 --> 00:23:25,373 of the financial crisis years. 527 00:23:27,120 --> 00:23:29,240 - Hi, my name is Bheki Mahlobo, 528 00:23:29,240 --> 00:23:31,680 and I have a question for the chief economist. 529 00:23:31,680 --> 00:23:33,840 So, I'm an economics student, 530 00:23:33,840 --> 00:23:35,147 and I'm not sure if you've noticed, 531 00:23:35,147 --> 00:23:37,270 but a lot of people in the Bitcoin space, 532 00:23:37,270 --> 00:23:40,660 they know more about economics than most PhD students 533 00:23:40,660 --> 00:23:41,896 in universities actually. 534 00:23:43,120 --> 00:23:46,260 This is because in university we're not particularly exposed 535 00:23:46,260 --> 00:23:48,170 to different, other schools of economic thought, 536 00:23:48,170 --> 00:23:50,850 like the Austrian school of economics, for example, 537 00:23:50,850 --> 00:23:52,970 and if we're not exposed to certain things 538 00:23:52,970 --> 00:23:54,400 then we won't question certain things, 539 00:23:54,400 --> 00:23:55,990 for example, like money. 540 00:23:55,990 --> 00:23:58,960 In school we're not particularly taught what money truly is. 541 00:23:58,960 --> 00:24:01,660 What is your opinion of Bitcoin being used 542 00:24:01,660 --> 00:24:06,660 as a way to escape this economy that exists right now? 543 00:24:07,020 --> 00:24:09,360 - You're absolutely right that in our universities 544 00:24:09,360 --> 00:24:12,120 we should teach other schools of thought as well, 545 00:24:12,120 --> 00:24:13,650 and a very important school of thought 546 00:24:13,650 --> 00:24:16,330 is the school of thought of real freedom. 547 00:24:16,330 --> 00:24:17,550 And I've got a suspicion. 548 00:24:17,550 --> 00:24:19,520 This new technology will really put the power 549 00:24:19,520 --> 00:24:21,280 in the hands of the individuals 550 00:24:21,280 --> 00:24:25,140 and allow us to experience that real, real freedom 551 00:24:25,140 --> 00:24:27,870 and not to enslave us the way 552 00:24:27,870 --> 00:24:30,210 that politicians have been enslaving us 553 00:24:30,210 --> 00:24:32,450 for the last couple of hundred years. 554 00:24:32,450 --> 00:24:34,190 This is a real freedom, 555 00:24:34,190 --> 00:24:35,600 but not only is it real freedom, 556 00:24:35,600 --> 00:24:37,730 it's very, very dangerous and with that, 557 00:24:37,730 --> 00:24:39,713 goes a huge responsibility as well. 558 00:24:40,909 --> 00:24:44,550 - 21-year-olds don't normally 559 00:24:44,550 --> 00:24:47,130 go to events like we did the other day. 560 00:24:47,130 --> 00:24:47,963 - Yeah, yeah. 561 00:24:47,963 --> 00:24:50,497 - That's not a normal 21-year-old thing to do. 562 00:24:50,497 --> 00:24:53,333 - Usually like clubs and stuff, right, yeah. 563 00:24:54,351 --> 00:24:55,730 The first time I heard about Bitcoin 564 00:24:55,730 --> 00:24:58,000 was from a movie called 'Dope'. 565 00:24:58,000 --> 00:25:01,940 This movie doesn't cover Bitcoin in a positive light. 566 00:25:01,940 --> 00:25:03,740 And then, I heard it again, and I was like 567 00:25:03,740 --> 00:25:07,540 maybe let me look at it and do a little bit more research, 568 00:25:07,540 --> 00:25:09,600 and that's where I fell down the rabbit-hole 569 00:25:09,600 --> 00:25:10,930 as the saying says. 570 00:25:10,930 --> 00:25:13,640 My economics teacher was heavily into gold. 571 00:25:13,640 --> 00:25:15,660 So he was explaining central banking, right, 572 00:25:15,660 --> 00:25:17,090 and fractional reserve banking, 573 00:25:17,090 --> 00:25:21,860 and inside I was like whoa, this seems a little bit shady. 574 00:25:21,860 --> 00:25:24,890 He explained that we actually don't need the system. 575 00:25:24,890 --> 00:25:26,590 In a normal economy things are supposed 576 00:25:26,590 --> 00:25:29,700 to get cheaper over time, not expensive over time, 577 00:25:29,700 --> 00:25:32,210 and the common thing that I'm hearing on the news 578 00:25:32,210 --> 00:25:34,660 or YouTube is that no, we need inflation 579 00:25:34,660 --> 00:25:37,150 so that there's economic growth. 580 00:25:37,150 --> 00:25:38,390 I did a little bit more digging 581 00:25:38,390 --> 00:25:40,750 and then that's when I found Mises. 582 00:25:40,750 --> 00:25:43,580 They follow the Austrian school of economics, 583 00:25:43,580 --> 00:25:45,120 and then they explain that no, 584 00:25:45,120 --> 00:25:47,370 we actually don't need inflation for economic growth, 585 00:25:47,370 --> 00:25:49,150 and, in fact, that whole statement 586 00:25:49,150 --> 00:25:51,033 is a whole contradiction in itself. 587 00:25:52,320 --> 00:25:53,830 When you define economic growth 588 00:25:53,830 --> 00:25:55,800 it's the increase in production, 589 00:25:55,800 --> 00:25:58,620 and the increase in production causes prices to decrease. 590 00:25:58,620 --> 00:26:00,780 An example of this would be technology. 591 00:26:00,780 --> 00:26:03,270 When the first phone came out it was quite expensive 592 00:26:03,270 --> 00:26:05,240 and then eventually there was a lot of people 593 00:26:05,240 --> 00:26:07,280 contributing to different designs, 594 00:26:07,280 --> 00:26:09,530 basically providing alternatives to smartphones 595 00:26:09,530 --> 00:26:12,530 and then the prices of smartphones decreased over time. 596 00:26:12,530 --> 00:26:15,530 That also could apply to the economy as well, 597 00:26:15,530 --> 00:26:18,810 and now I know, this person, what he's saying on TV, 598 00:26:18,810 --> 00:26:20,377 is utter nonsense. 599 00:26:20,377 --> 00:26:22,153 And then, what can I do about it? 600 00:26:22,153 --> 00:26:24,141 It's like buy Bitcoin, bruh. 601 00:26:24,980 --> 00:26:27,820 - Using this greedy algorithm I can make a lot of money, 602 00:26:27,820 --> 00:26:30,390 and actually the only way you could've won that game 603 00:26:30,390 --> 00:26:32,080 was to not play it. 604 00:26:32,080 --> 00:26:34,210 The problem is, when you have money on the table 605 00:26:34,210 --> 00:26:37,360 human beings start acting in a very curious way, 606 00:26:37,360 --> 00:26:40,090 but I wanna use this auction as an example 607 00:26:40,090 --> 00:26:42,020 of our banking system, 608 00:26:42,020 --> 00:26:43,470 and, in fact, the financial system 609 00:26:43,470 --> 00:26:45,170 that runs the world today. 610 00:26:45,170 --> 00:26:46,960 Because it is rigged. 611 00:26:46,960 --> 00:26:49,220 There are rules that have been put in place that mean 612 00:26:49,220 --> 00:26:51,640 that you will lose every time you play 613 00:26:51,640 --> 00:26:53,370 and somebody will make a lot of money 614 00:26:53,370 --> 00:26:55,010 because they control the algorithm 615 00:26:55,010 --> 00:26:57,120 that ensures that you lose. 616 00:26:57,120 --> 00:26:58,390 Our current banking systems, 617 00:26:58,390 --> 00:27:00,450 while they're useful for things like being carrots 618 00:27:00,450 --> 00:27:02,240 and going to the movies and stuff, 619 00:27:02,240 --> 00:27:04,800 are exploitive, and they're exclusionary, 620 00:27:04,800 --> 00:27:06,440 and they cut out a lot of the world, 621 00:27:06,440 --> 00:27:08,650 and we don't have to play the game anymore 622 00:27:08,650 --> 00:27:11,773 because we have the technology now to opt out. 623 00:27:13,550 --> 00:27:16,270 Money was always centralized, was always opaque, 624 00:27:16,270 --> 00:27:19,490 was always exclusionary, had too many middlemen, 625 00:27:19,490 --> 00:27:22,240 too many rent-seekers, too many people quite frankly 626 00:27:22,240 --> 00:27:24,950 benefiting from exploiting others. 627 00:27:24,950 --> 00:27:27,690 Finally, we could use the internet 628 00:27:27,690 --> 00:27:29,880 to create a financial system 629 00:27:29,880 --> 00:27:32,280 that benefited everybody potentially, 630 00:27:32,280 --> 00:27:34,960 that was resistant to censorship, 631 00:27:34,960 --> 00:27:37,150 that nobody could take control of, 632 00:27:37,150 --> 00:27:39,260 that's what the world had been waiting for 633 00:27:39,260 --> 00:27:41,913 and finally it arrived with the Bitcoin network. 634 00:27:42,875 --> 00:27:45,230 - I was never interested in all these subjects, 635 00:27:45,230 --> 00:27:47,770 this economics and finance, 636 00:27:47,770 --> 00:27:51,047 and since Bitcoin I became interested, 637 00:27:51,047 --> 00:27:55,200 and I would still be living in my oblivious way, 638 00:27:55,200 --> 00:27:58,510 hoping that whoever's running the system is running it fine 639 00:27:58,510 --> 00:28:00,720 and that we don't end up in the same way 640 00:28:00,720 --> 00:28:04,930 that Zimbabwe ended up where their money became worthless. 641 00:28:04,930 --> 00:28:07,490 It's not so much about not having a long-term view, 642 00:28:07,490 --> 00:28:10,200 it's just about being educated on this 643 00:28:10,200 --> 00:28:13,343 and the majority of people aren't educated on this. 644 00:28:15,350 --> 00:28:16,946 - Can I just go on and say something else 645 00:28:16,946 --> 00:28:17,779 that I think it is important? 646 00:28:17,779 --> 00:28:18,612 - Absolutely, absolutely. 647 00:28:18,612 --> 00:28:21,350 - Okay, if we use a blockchain system, 648 00:28:21,350 --> 00:28:24,580 the power is actually where I believe it should be 649 00:28:24,580 --> 00:28:26,930 and that's in the hands of the individuals. 650 00:28:26,930 --> 00:28:30,280 We do not need the permission to transfer money 651 00:28:30,280 --> 00:28:32,740 between my account and your account. 652 00:28:32,740 --> 00:28:35,560 And that, of course, also opens the possibility 653 00:28:35,560 --> 00:28:37,400 for things like, for example, fraud 654 00:28:37,400 --> 00:28:40,130 and tax evasion and all sort of illegal things. 655 00:28:40,130 --> 00:28:43,078 And the responsibility is also in the hands 656 00:28:43,078 --> 00:28:46,347 of the individuals, the way I believe it should be. 657 00:28:46,347 --> 00:28:47,425 - Why? 658 00:28:47,425 --> 00:28:49,890 Why should we have that kind of responsibility? 659 00:28:49,890 --> 00:28:53,430 - In all instances when governments got involved with money, 660 00:28:53,430 --> 00:28:57,430 in all instances without one single exception 661 00:28:57,430 --> 00:29:00,300 they have either destroyed the money 662 00:29:00,300 --> 00:29:03,170 or they are in the process of destroying it. 663 00:29:03,170 --> 00:29:05,980 So don't think that a politician or Central Bank 664 00:29:05,980 --> 00:29:07,960 is in the position that you can always trust him. 665 00:29:07,960 --> 00:29:10,680 It's just another individual, just another human, 666 00:29:10,680 --> 00:29:13,853 and they always make mistakes and it's inevitable. 667 00:29:15,800 --> 00:29:18,390 But ideologically, I also believe 668 00:29:18,390 --> 00:29:21,420 that I should have the right to decide for myself 669 00:29:21,420 --> 00:29:22,253 whether I want to lend you money, 670 00:29:22,253 --> 00:29:24,220 whether I want to borrow money, 671 00:29:24,220 --> 00:29:27,270 it's not up to some politician or some other institution 672 00:29:27,270 --> 00:29:29,200 to tell me what I can and what I can't do. 673 00:29:29,200 --> 00:29:30,723 That's my business. 674 00:29:34,620 --> 00:29:36,640 - There exists a definite two-camp divide 675 00:29:36,640 --> 00:29:39,170 over whether Bitcoin should be used to facilitate liberty 676 00:29:39,170 --> 00:29:41,900 and self-sovereignty or if it should be regulated 677 00:29:41,900 --> 00:29:43,133 to protect users. 678 00:29:45,030 --> 00:29:48,840 Can you give me an example of some of these crazy schemes 679 00:29:48,840 --> 00:29:50,910 that people are coming up with using crypto? 680 00:29:50,910 --> 00:29:53,200 - There's so many. 681 00:29:53,200 --> 00:29:55,814 I remember, but most of them coming from South Africa. 682 00:29:56,820 --> 00:30:00,170 So in the very beginning, I remember they used to call me 683 00:30:00,170 --> 00:30:01,510 and try to recruit me. 684 00:30:01,510 --> 00:30:02,363 They say like, "You've got a network of people 685 00:30:02,363 --> 00:30:04,190 "you can make a lot of money." 686 00:30:04,190 --> 00:30:05,737 I'm like, "I would rather be poor 687 00:30:05,737 --> 00:30:07,610 "than to join something that at the end of the day 688 00:30:07,610 --> 00:30:09,140 I'll hurt my own people." 689 00:30:09,140 --> 00:30:10,380 There's always a joining thing. 690 00:30:10,380 --> 00:30:12,370 It's like a pyramid scheme. 691 00:30:12,370 --> 00:30:13,550 The lady came to our office. 692 00:30:13,550 --> 00:30:15,130 She was really heartbroken 693 00:30:15,130 --> 00:30:17,527 because she has put a lot of money into a scheme 694 00:30:17,527 --> 00:30:19,730 and then it disappeared. 695 00:30:19,730 --> 00:30:23,000 People actually put their children's school fees. 696 00:30:23,000 --> 00:30:26,430 What I know is once you start having an influx of people 697 00:30:26,430 --> 00:30:27,460 calling and saying they want Bitcoin, 698 00:30:27,460 --> 00:30:29,620 know that there's a scheme coming up. 699 00:30:29,620 --> 00:30:32,230 So they're good in a sense maybe they make Bitcoin 700 00:30:32,230 --> 00:30:33,510 to be used a lot. 701 00:30:33,510 --> 00:30:35,850 But at the same time, they're really bad. 702 00:30:35,850 --> 00:30:37,733 The bad surpasses the good. 703 00:30:38,741 --> 00:30:41,650 One of the biggest challenges to explaining Bitcoin 704 00:30:41,650 --> 00:30:45,580 is to somebody who comes already with the 'preknowledge' 705 00:30:45,580 --> 00:30:48,177 of what Bitcoin is and then they come to you and say like, 706 00:30:48,177 --> 00:30:49,957 "How much do I join? 707 00:30:49,957 --> 00:30:52,010 "How would I make money very quick?" 708 00:30:52,010 --> 00:30:53,350 You try to convince the person 709 00:30:53,350 --> 00:30:56,120 that it's not about joining, it's like a revolution. 710 00:30:56,120 --> 00:30:58,640 It's like a new technology arising altogether. 711 00:30:58,640 --> 00:30:59,930 It's about you understanding. 712 00:30:59,930 --> 00:31:02,597 They're like, "No, but it's not that." 713 00:31:04,360 --> 00:31:07,960 The pros for me, is liberation, freedom, 714 00:31:07,960 --> 00:31:10,730 the ability to control your own money 715 00:31:10,730 --> 00:31:14,160 or the ability to send any amount of crypto or carry it. 716 00:31:14,160 --> 00:31:16,690 Imagine if you were to carry a chunk of gold, 717 00:31:16,690 --> 00:31:19,520 you want to pass through the border or whatever, you can't. 718 00:31:19,520 --> 00:31:22,020 So that's the beauty of Bitcoin. 719 00:31:22,020 --> 00:31:24,920 The negativity is people using it wrongly, 720 00:31:24,920 --> 00:31:27,130 making our people poor. 721 00:31:27,130 --> 00:31:29,610 Also, lack of regulations and stuff. 722 00:31:29,610 --> 00:31:33,040 If you can have maybe some sort of regulatory framework, 723 00:31:33,040 --> 00:31:35,570 it will also help protect us. 724 00:31:35,570 --> 00:31:36,640 I know you cannot control it 725 00:31:36,640 --> 00:31:38,580 because of the way it was created, 726 00:31:38,580 --> 00:31:42,108 but just regulations, it can help a little bit. 727 00:31:44,910 --> 00:31:46,370 - Since Bitcoin's early days 728 00:31:46,370 --> 00:31:49,100 it's been shrouded in mystery and controversy, 729 00:31:49,100 --> 00:31:52,340 from the bankruptcy of Mt. Gox, one of the early exchanges, 730 00:31:52,340 --> 00:31:55,200 to the infamy caused by the dark web Silk Road marketplace 731 00:31:55,200 --> 00:31:58,083 that accepted Bitcoin for nefarious goods and services. 732 00:31:59,400 --> 00:32:00,520 While Silk Road became one 733 00:32:00,520 --> 00:32:02,690 of the first use cases for Bitcoin, 734 00:32:02,690 --> 00:32:04,600 it also perhaps put the mainstream adoption 735 00:32:04,600 --> 00:32:06,350 of cryptocurrencies years behind 736 00:32:06,350 --> 00:32:08,100 where it might have been otherwise. 737 00:32:09,551 --> 00:32:13,100 - It was run by Dread Pirate Roberts, or Ross Ulbricht. 738 00:32:13,100 --> 00:32:15,300 If you follow the news you know that Ross Ulbricht 739 00:32:15,300 --> 00:32:17,550 was found guilty by a jury. 740 00:32:17,550 --> 00:32:20,390 The federal judge took his activities very serious 741 00:32:20,390 --> 00:32:24,050 and she actually sentenced him to serve a life sentence. 742 00:32:24,050 --> 00:32:26,260 They counted at least six individuals 743 00:32:26,260 --> 00:32:28,450 who had purchased narcotics off of Silk Road 744 00:32:28,450 --> 00:32:30,670 and died as a result. 745 00:32:30,670 --> 00:32:33,410 What we basically are focused on, 746 00:32:33,410 --> 00:32:37,120 one, is criminal offenses involving digital currency, 747 00:32:37,120 --> 00:32:40,250 which could be any sort of crime, whether it's narcotics, 748 00:32:40,250 --> 00:32:41,280 whether it's murder-for-hire, 749 00:32:41,280 --> 00:32:43,810 whether it's identity theft and so on, 750 00:32:43,810 --> 00:32:47,650 in which the bad guys are utilizing Bitcoin 751 00:32:47,650 --> 00:32:49,410 rather than other forms of money 752 00:32:49,410 --> 00:32:51,220 because they, in our experience, 753 00:32:51,220 --> 00:32:52,720 believe it to be untraceable, 754 00:32:52,720 --> 00:32:57,060 which is clearly an accident on their part, 755 00:32:57,060 --> 00:33:00,160 a misunderstanding to say the least. 756 00:33:00,160 --> 00:33:04,025 But we also deal with the regulation of exchanges of money. 757 00:33:07,320 --> 00:33:08,208 - Very nice. 758 00:33:08,208 --> 00:33:10,442 - Don't touch, don't touch. 759 00:33:10,442 --> 00:33:12,558 - No, you must be careful. 760 00:33:12,558 --> 00:33:15,860 Every single transaction that occurs in the Bitcoin network 761 00:33:15,860 --> 00:33:17,730 is recorded in something called the blockchain, 762 00:33:17,730 --> 00:33:20,080 a public ledger of every transaction that's made. 763 00:33:20,080 --> 00:33:21,513 The only problem is that 764 00:33:21,513 --> 00:33:23,160 even though you can see every single transaction, 765 00:33:23,160 --> 00:33:25,080 and you can see the addresses, 766 00:33:25,080 --> 00:33:28,250 which are like the account numbers of the people 767 00:33:28,250 --> 00:33:30,210 that are holding those bitcoins, 768 00:33:30,210 --> 00:33:33,120 you don't actually know who those addresses belong to. 769 00:33:33,120 --> 00:33:37,220 So, the correct term isn't anonymous, it's pseudonymous. 770 00:33:37,220 --> 00:33:39,530 Cash is truly anonymous. 771 00:33:39,530 --> 00:33:42,920 If you have a suitcase of cash and you go and spend it, 772 00:33:42,920 --> 00:33:45,600 there's no way that that transaction is recorded. 773 00:33:45,600 --> 00:33:50,320 So, Bitcoin is less anonymous than cash 774 00:33:50,320 --> 00:33:53,160 and we certainly know how cash can be used 775 00:33:53,160 --> 00:33:54,490 for nefarious purposes. 776 00:33:54,490 --> 00:33:56,060 We know that suitcases of money 777 00:33:56,060 --> 00:33:57,810 and drug deals happen all the time. 778 00:33:59,430 --> 00:34:00,620 - There was a name that kept coming up 779 00:34:00,620 --> 00:34:02,820 in conversation and research, 780 00:34:02,820 --> 00:34:05,600 and for his name alone it felt necessary to meet him. 781 00:34:05,600 --> 00:34:06,583 Fluffy Pony. 782 00:34:07,770 --> 00:34:09,300 It's a nickname that stuck years ago 783 00:34:09,300 --> 00:34:10,510 that despite his best efforts, 784 00:34:10,510 --> 00:34:12,670 Riccardo is not able to get rid of, 785 00:34:12,670 --> 00:34:14,620 but amongst the noise of the crypto world, 786 00:34:14,620 --> 00:34:16,503 Fluffy Pony definitely stands out. 787 00:34:20,290 --> 00:34:22,520 Why is privacy so important 788 00:34:22,520 --> 00:34:26,080 and how is it lacking in the way we currently do things? 789 00:34:26,080 --> 00:34:29,033 - Privacy is the natural state of things. 790 00:34:29,880 --> 00:34:32,290 You're not closing the door at the bathroom 791 00:34:32,290 --> 00:34:35,840 because you want to plot to overthrow the government. 792 00:34:35,840 --> 00:34:37,210 You're closing the door at the bathroom 793 00:34:37,210 --> 00:34:40,310 because you don't want people to see you on the loo. 794 00:34:40,310 --> 00:34:43,560 There's certain aspects of our life we wanna keep private, 795 00:34:43,560 --> 00:34:46,310 that we might reveal to certain people. 796 00:34:46,310 --> 00:34:47,940 We hopefully take our clothes off 797 00:34:47,940 --> 00:34:49,580 in front of the person we're married to, 798 00:34:49,580 --> 00:34:52,810 but we don't go and walk around the shopping center naked. 799 00:34:52,810 --> 00:34:57,500 But privacy has become, it's sort of become, overshadowed 800 00:34:57,500 --> 00:34:59,610 by oh bad people want privacy, 801 00:34:59,610 --> 00:35:02,240 or things like if you have nothing to hide, 802 00:35:02,240 --> 00:35:04,380 then why do you care about privacy? 803 00:35:04,380 --> 00:35:06,260 It's not about wanting to hide it from everyone. 804 00:35:06,260 --> 00:35:09,930 It's just that we wanna control who sees the information. 805 00:35:09,930 --> 00:35:11,200 If law enforcement or the government 806 00:35:11,200 --> 00:35:12,670 want information about me, 807 00:35:12,670 --> 00:35:14,490 they should have to come knock on my door 808 00:35:14,490 --> 00:35:16,000 to get that information. 809 00:35:16,000 --> 00:35:18,410 They shouldn't be able to just get that information 810 00:35:18,410 --> 00:35:19,490 because my bank is telling them 811 00:35:19,490 --> 00:35:22,258 about every transaction I've ever done. 812 00:35:25,620 --> 00:35:28,630 - I know people say there is information on the internet, 813 00:35:28,630 --> 00:35:29,730 but it's different. 814 00:35:29,730 --> 00:35:33,450 If I'm able to really expand on the information 815 00:35:33,450 --> 00:35:34,680 maybe you picked from the internet 816 00:35:34,680 --> 00:35:37,570 and make you understand, it makes me feel good 817 00:35:37,570 --> 00:35:39,640 because I know I've empowered you, 818 00:35:39,640 --> 00:35:41,070 you will take the same knowledge 819 00:35:41,070 --> 00:35:43,360 and you give it to someone. 820 00:35:43,360 --> 00:35:47,099 So if I'm able to reproduce someone who does what I do. 821 00:35:49,292 --> 00:35:52,083 That's the real deal, that's the real deal, yeah. 822 00:35:53,650 --> 00:35:55,340 Had it not been for him, 823 00:35:55,340 --> 00:35:57,230 I wouldn't be doing what I'm doing. 824 00:35:57,230 --> 00:35:59,860 He made me to know about Bitcoin. 825 00:35:59,860 --> 00:36:03,060 So because I was trying to help him during that time, 826 00:36:03,060 --> 00:36:04,970 now I'm helping people with knowledge. 827 00:36:04,970 --> 00:36:07,990 So it's like transferring whatever I wanted to do for him 828 00:36:07,990 --> 00:36:11,243 now he's somehow doing it for the people through me. 829 00:36:11,243 --> 00:36:13,520 I'll continue to honor him, yeah. 830 00:36:13,520 --> 00:36:15,277 He'll be my baby forever. 831 00:36:16,170 --> 00:36:17,263 Yep, yeah. 832 00:36:23,750 --> 00:36:27,110 - When I got introduced to Bitcoin, it's like okay, 833 00:36:27,110 --> 00:36:29,960 let me save, each month I save, I save, I save. 834 00:36:29,960 --> 00:36:31,640 I think more about the future, 835 00:36:31,640 --> 00:36:32,477 what's gonna happen in the future 836 00:36:32,477 --> 00:36:36,823 and I orientate my actions today that'll impact the future. 837 00:36:37,760 --> 00:36:39,380 I mean, that's the reason why I'm studying, right? 838 00:36:39,380 --> 00:36:42,210 I'm like, it seems like some really interesting stuff 839 00:36:42,210 --> 00:36:44,050 in the space of crypto. 840 00:36:44,050 --> 00:36:46,230 I'm not saying I'm against banking, 841 00:36:46,230 --> 00:36:48,110 I'm just against fractional reserve banking. 842 00:36:48,110 --> 00:36:50,870 So, I orientate my actions towards that, 843 00:36:50,870 --> 00:36:52,323 the new financial system. 844 00:36:54,250 --> 00:36:55,510 I would be a lot more stressed 845 00:36:55,510 --> 00:36:57,270 if I didn't have Bitcoin, honestly. 846 00:36:57,270 --> 00:36:58,345 - Why? 847 00:36:58,345 --> 00:36:59,360 - Let's say, for example, 848 00:36:59,360 --> 00:37:02,650 if we have the Central Bank government decides like 849 00:37:02,650 --> 00:37:05,403 yo, I'm gonna print like two trillion rand 850 00:37:05,403 --> 00:37:06,610 into the economy. 851 00:37:06,610 --> 00:37:09,750 The consequences of that would be hyperinflation. 852 00:37:09,750 --> 00:37:11,837 I can't remember who said this, but it says like, 853 00:37:11,837 --> 00:37:14,257 "Bitcoin's not about getting your money out of the country, 854 00:37:14,257 --> 00:37:17,440 "it's about getting your country out of your money." 855 00:37:17,440 --> 00:37:19,640 Essentially, it's like protecting your savings, 856 00:37:19,640 --> 00:37:22,910 protecting your stored value, that's why I'm into Bitcoin. 857 00:37:24,960 --> 00:37:27,640 - I think the financial crisis started a discussion 858 00:37:27,640 --> 00:37:30,240 that Bitcoin then accelerated 859 00:37:30,240 --> 00:37:32,130 around why the financial system works the way it does 860 00:37:32,130 --> 00:37:34,610 and whether or not it should work that way. 861 00:37:34,610 --> 00:37:36,300 How can we make it more transparent? 862 00:37:36,300 --> 00:37:37,910 How can we make it more fair? 863 00:37:37,910 --> 00:37:40,790 How can we improve the world of money for everybody? 864 00:37:40,790 --> 00:37:42,280 But it was a very difficult discussion 865 00:37:42,280 --> 00:37:45,090 to have with people in the early days of Bitcoin. 866 00:37:45,090 --> 00:37:47,450 I was writing for Finweek Magazine at the time 867 00:37:47,450 --> 00:37:50,220 and I did a story on Bitcoin in 2011, 868 00:37:50,220 --> 00:37:52,110 and some of my colleagues literally laughed at me. 869 00:37:52,110 --> 00:37:53,027 They were like, "This is the dumbest thing 870 00:37:53,027 --> 00:37:55,177 "we've ever heard of, it's a bubble, 871 00:37:55,177 --> 00:37:56,977 "it'll never be worth more than $9." 872 00:37:58,346 --> 00:38:00,930 At its height it was worth $20,000 873 00:38:00,930 --> 00:38:03,630 and it's gonna be worth a lot more than that one day, 874 00:38:03,630 --> 00:38:06,070 and every time we see this cycle. 875 00:38:06,070 --> 00:38:08,220 We have people laughing, it's not gonna last, 876 00:38:08,220 --> 00:38:09,680 it's over-inflated, 877 00:38:09,680 --> 00:38:10,980 and every time they're right 878 00:38:10,980 --> 00:38:12,390 for a very short period of time, 879 00:38:12,390 --> 00:38:14,040 and then every time they're proven 880 00:38:14,040 --> 00:38:16,950 ultimately wrong in the medium-term. 881 00:38:16,950 --> 00:38:17,980 I believe that one day 882 00:38:17,980 --> 00:38:20,240 it's something that you won't have to understand. 883 00:38:20,240 --> 00:38:22,060 It just makes your life better. 884 00:38:22,060 --> 00:38:23,200 Very few people can tell you 885 00:38:23,200 --> 00:38:25,200 exactly how their smartphone works. 886 00:38:25,200 --> 00:38:26,830 It doesn't matter because the narrative 887 00:38:26,830 --> 00:38:28,680 has become about why it's good for them. 888 00:38:28,680 --> 00:38:30,350 What does it enable in their lives? 889 00:38:30,350 --> 00:38:32,630 Well I can speak to my grandchildren. 890 00:38:32,630 --> 00:38:34,130 I can stay up-to-date with the news. 891 00:38:34,130 --> 00:38:36,130 I can take pictures of my family. 892 00:38:36,130 --> 00:38:38,210 Those are the things that matter. 893 00:38:38,210 --> 00:38:41,030 How the processor works and all of the software 894 00:38:41,030 --> 00:38:42,210 that makes it possible, 895 00:38:42,210 --> 00:38:45,073 nobody really needs to understand the bits and pieces. 896 00:38:50,780 --> 00:38:54,393 - Welcome to Emaweni, in the middle of the night. 897 00:38:56,000 --> 00:38:57,210 - At two o'clock in the morning, 898 00:38:57,210 --> 00:38:58,810 I followed Lorien out to Soweto 899 00:38:58,810 --> 00:39:00,150 to witness history being made 900 00:39:00,150 --> 00:39:02,943 with a live demonstration of his Bitcoin prepaid meter. 901 00:39:04,036 --> 00:39:05,790 Lorien would be Skyping through to a conference 902 00:39:05,790 --> 00:39:08,520 on the other side of the world at MIT in Boston, 903 00:39:08,520 --> 00:39:11,010 where his friend Ed would be making a Bitcoin payment 904 00:39:11,010 --> 00:39:12,343 straight to the meter. 905 00:39:13,860 --> 00:39:15,440 - So, what I'm gonna do 906 00:39:15,440 --> 00:39:16,690 is I'm actually going to - 907 00:39:20,110 --> 00:39:22,963 be ready, okay, so let's get this whole thing started. 908 00:39:23,850 --> 00:39:25,820 They're gonna be calling right now, 909 00:39:25,820 --> 00:39:27,525 in about two minutes 910 00:39:27,525 --> 00:39:30,584 and then I'm gonna come to that classroom. 911 00:39:30,584 --> 00:39:31,640 - Okay. 912 00:39:31,640 --> 00:39:34,580 - Shame, they've been here for two hours, three hours. 913 00:39:34,580 --> 00:39:35,850 They got here at 12. 914 00:39:42,008 --> 00:39:43,086 Hi, Ed. 915 00:39:43,086 --> 00:39:44,430 - This is a pack room here. 916 00:39:44,430 --> 00:39:46,410 - Hi, everybody. - Can you see all of them? 917 00:39:46,410 --> 00:39:49,920 - Hi, nice to see you all, thanks for coming. 918 00:39:49,920 --> 00:39:52,920 - Could you shortly explain where you are 919 00:39:52,920 --> 00:39:54,660 and what you're doing there? 920 00:39:54,660 --> 00:39:57,050 - Sure, I'm in a city outside 921 00:39:57,050 --> 00:39:58,930 of Johannesburg, in South Africa, 922 00:39:58,930 --> 00:40:00,130 it's called Soweto. 923 00:40:00,130 --> 00:40:01,170 Where I am right now is very close 924 00:40:01,170 --> 00:40:04,170 to where Nelson Mandela used to live in his youth, 925 00:40:04,170 --> 00:40:05,700 and I'm in a small school. 926 00:40:05,700 --> 00:40:07,200 We're gonna be demonstrating 927 00:40:08,520 --> 00:40:11,330 our blockchain prepaid metering system. 928 00:40:11,330 --> 00:40:14,404 So, this is now one of the electrical boxes. 929 00:40:14,404 --> 00:40:16,110 I don't think you can actually see, 930 00:40:16,110 --> 00:40:18,250 but there is a , 931 00:40:18,250 --> 00:40:20,450 this is now just a conventional meter box, 932 00:40:20,450 --> 00:40:23,670 but there's a blockchain enabled meter over there, 933 00:40:23,670 --> 00:40:27,890 and what we're gonna do now is I'm gonna go to the classroom 934 00:40:27,890 --> 00:40:32,120 and there's some teachers there, and it's all dark, 935 00:40:32,120 --> 00:40:35,409 and Ed's gonna now make the transaction. 936 00:40:35,409 --> 00:40:36,901 - How long 937 00:40:36,901 --> 00:40:38,090 does the transaction take? 938 00:40:38,090 --> 00:40:39,855 - The transaction takes about, 939 00:40:39,855 --> 00:40:41,306 it should take about 30 seconds. 940 00:40:42,190 --> 00:40:43,023 All right. 941 00:40:45,777 --> 00:40:46,663 Go for it. 942 00:40:46,663 --> 00:40:48,230 Okay, and now we wait I guess. 943 00:40:48,230 --> 00:40:49,980 And we hope it works. 944 00:40:51,100 --> 00:40:52,070 So yeah, now what's happening 945 00:40:52,070 --> 00:40:53,110 is it's now going through the blockchain, 946 00:40:53,110 --> 00:40:55,450 the meter's gonna detect the payment, 947 00:40:55,450 --> 00:40:56,830 it's gonna calculate the tariff, 948 00:40:56,830 --> 00:40:59,590 and then load the required amount of electricity 949 00:40:59,590 --> 00:41:01,280 onto the meter. 950 00:41:01,280 --> 00:41:02,230 So, there's nothing on it at the moment. 951 00:41:02,230 --> 00:41:03,939 That's why we're in the dark. 952 00:41:03,939 --> 00:41:06,933 And, hopefully in a few seconds 953 00:41:06,933 --> 00:41:09,140 the meter should be activated. 954 00:41:09,140 --> 00:41:10,751 I'm actually sitting in one of the classrooms here, 955 00:41:10,751 --> 00:41:11,918 so you can see 956 00:41:14,249 --> 00:41:16,578 the staff here, ready? 957 00:41:20,524 --> 00:41:23,537 This should be a few, about 30 seconds. 958 00:41:23,537 --> 00:41:26,204 - 41 seconds. - 41 seconds, okay. 959 00:41:32,821 --> 00:41:33,654 All right. 960 00:41:34,758 --> 00:41:35,928 - Maybe you should just switch them on. 961 00:41:35,928 --> 00:41:39,261 - No, no, not fair if there's switching. 962 00:41:45,044 --> 00:41:49,345 This is usually what happens in the live demo. 963 00:41:49,345 --> 00:41:50,345 - Yeah. 964 00:41:52,296 --> 00:41:56,129 Let me just check if I have the right address. 965 00:41:57,530 --> 00:41:59,530 Yeah, yeah it's Emaweni. 966 00:42:02,714 --> 00:42:05,333 - Hmm, oh there we go. 967 00:42:28,270 --> 00:42:31,220 I've got four sons who are busy. 968 00:42:31,220 --> 00:42:32,820 One of the things that I've been involved with 969 00:42:32,820 --> 00:42:34,530 is the Cub Scouts. 970 00:42:34,530 --> 00:42:37,640 I take my sons there on a Friday night. 971 00:42:37,640 --> 00:42:41,430 We get involved teaching kids how to be independent, 972 00:42:41,430 --> 00:42:43,970 and also, most importantly, be good citizens. 973 00:42:43,970 --> 00:42:45,820 It's very important to get children 974 00:42:45,820 --> 00:42:48,750 to consider their communities and their society 975 00:42:48,750 --> 00:42:52,260 and to be empathetic to other people, 976 00:42:52,260 --> 00:42:55,170 to try and make their communities better, 977 00:42:55,170 --> 00:42:58,963 to build it up, to try and think civic-mindedly. 978 00:43:03,120 --> 00:43:04,890 - This is the thing that I struggle with. 979 00:43:04,890 --> 00:43:08,710 So in Africa, I don't know that it helps 980 00:43:08,710 --> 00:43:10,440 to resolve third world problems 981 00:43:10,440 --> 00:43:14,010 because if you live in a hut 982 00:43:14,010 --> 00:43:15,540 you don't have access to the internet. 983 00:43:15,540 --> 00:43:17,330 You don't have access to a phone. 984 00:43:17,330 --> 00:43:19,300 Do you think that it's actually something 985 00:43:19,300 --> 00:43:22,310 that could really genuinely make a practical, 986 00:43:22,310 --> 00:43:24,040 real-world, difference here? 987 00:43:24,040 --> 00:43:26,970 - I tend to think that cryptocurrencies have potential 988 00:43:26,970 --> 00:43:28,900 to solve real world problems all over the world. 989 00:43:28,900 --> 00:43:30,800 You're not gonna solve all the problems, certainly. 990 00:43:30,800 --> 00:43:33,930 Even if it just becomes a global reserve currency, 991 00:43:33,930 --> 00:43:37,510 the local currency for a country becomes less important, 992 00:43:37,510 --> 00:43:40,800 where people can trivially shift from whatever 993 00:43:40,800 --> 00:43:43,110 the local currency is into Bitcoin, 994 00:43:43,110 --> 00:43:44,670 and then it doesn't matter 995 00:43:44,670 --> 00:43:46,190 what happens to the local currency. 996 00:43:46,190 --> 00:43:48,260 Now, your reliance isn't on the government 997 00:43:48,260 --> 00:43:50,550 to keep the economy stable 998 00:43:50,550 --> 00:43:53,400 because you've got a back-up, you've got a fallback. 999 00:43:53,400 --> 00:43:55,930 That's very powerful and I think that 1000 00:43:55,930 --> 00:43:58,760 that's something that could have lasting effects 1001 00:43:58,760 --> 00:44:01,640 and impact in Africa. 1002 00:44:01,640 --> 00:44:05,190 We've had this leapfrog thing that occurs, 1003 00:44:05,190 --> 00:44:07,860 where there's an innovation, 1004 00:44:07,860 --> 00:44:11,020 like digital cellphones when they came out, 1005 00:44:11,020 --> 00:44:12,030 those were the first cellphones 1006 00:44:12,030 --> 00:44:14,530 that really got deployed in South Africa, 1007 00:44:14,530 --> 00:44:17,950 and because of that we were on 3G faster 1008 00:44:17,950 --> 00:44:21,440 than the United States and most of Europe, 1009 00:44:21,440 --> 00:44:23,560 and it's just because the infrastructure 1010 00:44:23,560 --> 00:44:24,800 is a little bit more modern, 1011 00:44:24,800 --> 00:44:27,530 because it was deployed slightly later in the game. 1012 00:44:27,530 --> 00:44:31,610 There are a class of problems in Africa 1013 00:44:31,610 --> 00:44:35,700 where we can just leapfrog, and use cryptocurrencies 1014 00:44:35,700 --> 00:44:38,443 to our advantage, and I think that's what's gonna happen. 1015 00:44:39,520 --> 00:44:41,660 - Even though, myself on a day-to-day basis, 1016 00:44:41,660 --> 00:44:44,490 I don't use Bitcoin in the way I would like. 1017 00:44:44,490 --> 00:44:46,167 I do wanna be able to spend Bitcoin 1018 00:44:46,167 --> 00:44:48,620 and I do wanna be able to have people out there 1019 00:44:48,620 --> 00:44:51,010 in this country spending Bitcoin. 1020 00:44:51,010 --> 00:44:54,610 I want merchants and service providers to accept Bitcoin. 1021 00:44:54,610 --> 00:44:57,750 So, instead of waiting for them to do that, 1022 00:44:57,750 --> 00:45:00,770 I'm now going and actually providing those tools. 1023 00:45:00,770 --> 00:45:04,950 I will certainly strive to create the opportunity 1024 00:45:04,950 --> 00:45:08,290 for people to spend it in their day-to-day lives 1025 00:45:08,290 --> 00:45:10,690 and also to accept it in their day-to-day lives. 1026 00:45:12,050 --> 00:45:13,930 - Ironically, the story I expected 1027 00:45:13,930 --> 00:45:15,980 was to be told by a bunch of men in suits 1028 00:45:15,980 --> 00:45:17,533 just in pursuit of more money. 1029 00:45:18,650 --> 00:45:20,830 I expected to find bandits, and terrorists, 1030 00:45:20,830 --> 00:45:24,093 and everyday-Joes organizing dark deeds in dark places. 1031 00:45:25,020 --> 00:45:26,530 But in the last five and a half years, 1032 00:45:26,530 --> 00:45:27,920 the story I thought I would be telling 1033 00:45:27,920 --> 00:45:31,593 about the crypto space in Africa never materialized. 1034 00:45:32,810 --> 00:45:34,690 I've realized that my pessimism at the beginning 1035 00:45:34,690 --> 00:45:37,780 of this journey was actually just misplaced, 1036 00:45:37,780 --> 00:45:41,283 but regardless, that pessimism has now turned to optimism, 1037 00:45:42,380 --> 00:45:45,220 not so much because of the tech, but because of the people 1038 00:45:45,220 --> 00:45:49,310 who are using it to make the circle both bigger and better, 1039 00:45:49,310 --> 00:45:51,960 and that's what I call the beginning of a revolution. 1040 00:45:59,747 --> 00:46:02,203 - Just off the top of my head. 1041 00:46:03,404 --> 00:46:04,630 - Bitcoin. 1042 00:46:04,630 --> 00:46:06,174 - Ethereum Classic. 1043 00:46:06,174 --> 00:46:07,043 - Huntercoin. 1044 00:46:07,043 --> 00:46:08,245 - Monero. 1045 00:46:08,245 --> 00:46:09,200 - Ethereum. 1046 00:46:09,200 --> 00:46:10,484 - Ripple XRP. 1047 00:46:10,484 --> 00:46:11,402 - Bitcoins. 1048 00:46:11,402 --> 00:46:12,980 - Bitcoin Gold, Bitcoin Silver, 1049 00:46:12,980 --> 00:46:14,850 Bitcoin Diamond, Bitcoin Private, 1050 00:46:14,850 --> 00:46:16,330 all of the things that start with Bitcoin 1051 00:46:16,330 --> 00:46:17,787 and have another word after it. 1052 00:46:17,787 --> 00:46:19,420 - Dash, Zcash. 1053 00:46:19,420 --> 00:46:20,990 - There's Cardano. 1054 00:46:20,990 --> 00:46:21,823 - EOS. 1055 00:46:21,823 --> 00:46:23,468 - Stellar Lumens. 1056 00:46:23,468 --> 00:46:24,537 - Calibur. 1057 00:46:24,537 --> 00:46:25,590 - IOTA. 1058 00:46:25,590 --> 00:46:27,440 - There's another one called E-Ora. 1059 00:46:27,440 --> 00:46:28,586 - Bitconnect. 1060 00:46:30,330 --> 00:46:33,093 I'm sorry, I'm sorry, that was like a scam coin. 1061 00:46:34,439 --> 00:46:35,932 - Did I say Dash? 1062 00:46:35,932 --> 00:46:38,432 Of course Dash, Litecoin Cash. 1063 00:46:44,550 --> 00:46:46,160 - I just hit a blank. 1064 00:46:46,160 --> 00:46:48,110 - Now they're escaping me, these coins. 1065 00:46:49,020 --> 00:46:50,063 As many as I can. 1066 00:46:53,510 --> 00:46:55,810 - There's so many, it's hard to think of them. 1067 00:46:57,142 --> 00:46:57,975 - UBU. 1068 00:46:59,430 --> 00:47:00,263 BNB. 1069 00:47:02,780 --> 00:47:03,613 PRIVEX. 1070 00:47:05,100 --> 00:47:06,504 This should be a lot easier. 1071 00:47:07,305 --> 00:48:07,382 Support us and become VIP member to remove all ads from OpenSubtitles.org 85009

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