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Downloaded from
YTS.MX
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Official YIFY movies site:
YTS.MX
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(audience applauds)
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- Right, finally, we
have Torsten Hoffmann,
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who's the producer of the Cryptopia Film.
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(audience applauds)
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- Thanks, Peter.
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Five years ago,
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I made a film about the history of money,
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banking, and Bitcoin.
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Buckle up, we said, it's
gonna be a bumpy ride.
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And now, some of the
big brains and big egos
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who championed cryptocurrency
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claim they're building a crypto-utopia.
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- Magical things will happen.
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- [Torsten] With something
called blockchain technology,
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and it just might change your life.
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- And they really could compete with,
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if not take down the Facebooks
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and the Googles, and the Amazons.
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- My name is Torsten Hoffmann,
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and I'm going to put some
of these claims to the test.
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Some critics say you kind
of hurt the community.
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What's your response to that?
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This innovation has enabled
lots of criminals and scammers.
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But basically looking at
it now, you lied to us.
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Forget all the hype.
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We'll explore the true
potential of this new invention.
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See who's already using it.
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- Making it really easy and simple
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for people to own a piece of
a solar farm or wind farm.
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(soft music)
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- [Torsten] And go deep
into a secret bunker
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that holds billions in Bitcoin.
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- [Christoph] We cannot
talk too much about it
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because it's pretty secret
what is down there, right.
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(soft music)
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- And if Bitcoin succeeds,
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it'll be at least $1 million per coin.
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(soft music)
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- [Torsten] We'll learn
lessons from the past
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and meet those building the future.
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But there are those who want to kill it.
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- Join with me in introducing
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a bill to outlaw cryptocurrency
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so that we nip this in the bud.
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- [Torsten] Control it.
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- Next year, people are
going to start seeing
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that we have hundreds of patents
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and everything changes.
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- [Torsten] Or change the world with it.
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Welcome to ground zero
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in the battle for the future
of the Internet: Web 3.0.
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- They wanted a science fiction dream,
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what they actually did was
build forthcoming disaster.
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- A lot of people were
not willing to learn
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and were not willing to
admit they were wrong.
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- They're idiots.
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- Why is this fraud allowed
to speak at this conference?
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- Stop telling me that I have no clue.
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- That's just bullshit.
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- If you don't support free speech,
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you don't support Bitcoin.
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You're an enemy of Bitcoin.
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- [Tim Draper] This is
bigger than the internet,
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the Iron Age,
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the Renaissance,
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the Industrial Revolution.
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This affects the entire world.
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(electronic music)
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- For years and years,
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I've been researching
blockchain technology,
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cryptocurrencies, the
market booms and busts,
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and many have asked me to
explain Bitcoin to them,
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but I think this is why it's so difficult.
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- Cryptocurrencies,
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everything you don't
understand about money
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combine with everything
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you don't understand about computers.
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- [Torsten] Okay, let's start slowly
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with the basics of
money and it's creation.
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- [Narrator] The total value
of all the world's money
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is about $120 trillion.
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What you probably didn't know
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is that each new dollar
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is created by governments
and banks as debt,
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which needs to be paid back
by someone in the future
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with interest.
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That's why there isn't
enough money in the world
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to repay all that debt.
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And there never will be.
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Oh, and almost all of the world's money
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is already digital,
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just entries in the ledger,
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usually managed by a bank.
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Only a small portion
exists as physical currency
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like cash or coins.
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Think of it this way,
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your employer deposits $1,000
into your bank account.
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Then you pay $200 in taxes,
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$500 for rent,
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$200 for bills and shopping and so forth.
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Whether you use credit cards,
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debit cards, PayPal, or bank transfers,
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they're all just pluses and minuses
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in different digital ledgers.
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That's why there's almost
no need for physical money
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in our daily lives.
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- During the financial crisis in 2008,
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a mysterious figure
called Satoshi Nakamoto
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published this nine page white paper.
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It said with Bitcoin's
open source software,
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we can create our own money
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without banks or Governments.
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(electronic music)
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This new nerd money,
called cryptocurrency,
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is created and stored in computers.
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And before long, there
was a growing fan club,
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mostly guys like Roger Ver.
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Today, he's a polarizing figure,
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but back then, he gave
away thousands of coins
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to kickstart the movement,
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and they all called him Bitcoin Jesus.
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- I think that for may years,
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he brought more people to
Bitcoin than anyone else.
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And we will forever be
grateful to him for doing that.
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- When I was a kid,
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I was reading all these
science fiction books.
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They were talking about
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how the world is gonna be
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when we have this like
anonymous digital cash
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that people can use on the internet
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that's not controllable by anybody.
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And then when Bitcoin came along,
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it was like: Wow, this
science fiction money idea
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that I'd been reading about as a kid
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is finally here.
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So I got so excited about it.
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I heard about it at
about 10 in the morning.
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And I was planning to go to
work that day, but I didn't.
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I stayed home the entire
day reading about it.
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Didn't leave, I stayed
up all night that night
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reading about it.
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00:05:47,476 --> 00:05:49,209
Stayed up all night the
next night reading about it.
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- [Torsten] He went deep
down that rabbit hole
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to the point of physical exhaustion.
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- So I called up a friend of mine,
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said please help me, I'm so sick.
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Can you bring me to the hospital?
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- [Torsten] Yeah, Roger got bit bad
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by the Bitcoin bug.
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- Cause it's truly one of
the most exciting inventions
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00:06:03,831 --> 00:06:05,677
ever in the entire history of human kind.
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- [Torsten] But how does it work?
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When my friends ask me to explain,
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well I often start with this analogy.
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- [Narrator] Imagine a bank vault
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where you have a safety deposit box.
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Your key opens one of the boxes
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where you can securely
store physical valuables,
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like gold coins.
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In Bitcoin, there are digital keys.
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Think of them as very long passwords.
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Your private key gives
you access to a wallet,
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which unlocks billions of
unique Bitcoin addresses.
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Each one is a virtual safety deposit box
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that only you can open with your key.
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And there are more addresses
in this virtual vault
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than atoms in the universe.
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The doors to these boxes are transparent.
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You can see inside them.
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Here's one with digital
money, 0.21 Bitcoins.
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Sending them from one box to another
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is what's called a Bitcoin transaction.
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We'll explain that later.
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But for now,
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just remember that these digital coins
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can only exist inside these
transparent address boxes,
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can't be copied,
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00:07:08,635 --> 00:07:11,025
and can't ever leave the vault.
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And this vault is owned
by no single entity.
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You don't need permission
from a government,
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a bank, or a corporation to use it.
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(electronic music)
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- [Torsten] For most
early adopters of Bitcoin,
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it was all about global peer
to peer electronic cash.
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Room 77 in Berlin was one
of the very first businesses
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to accept Bitcoins as
payment for physical things,
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beers and burgers.
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- Back in 2011, there were
no mobile wallets, right.
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So you had to go there, bring your laptop,
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type in this long address,
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risk losing the money if you
didn't type it correctly.
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So the first guy who built a mobile wallet
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was some guy in Berlin
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00:08:03,610 --> 00:08:06,121
who built it in order to buy his beer
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with his phone instead of his computer.
198
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(speaking in foreign language)
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- [Narrator] Credit cards
are an old technology,
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00:08:31,311 --> 00:08:32,616
and actually pretty complex.
201
00:08:32,640 --> 00:08:35,798
And you payment details are
shared with many middlemen.
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Each of these parties are also
taking a cut of the action,
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which is built into the price
of nearly everything you buy.
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If you purchase something internationally,
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double the number of
middlemen and triple the fees.
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Credit cards handle almost $20 trillion
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of transactions per year.
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(upbeat music)
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- [Torsten] Early Bitcoin
adopters, like Room 77,
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avoided paying credit card fees.
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But Joerg's real beef was with the bankers
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who collect them.
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(upbeat music)
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- [Torsten] Collapsing economies, murder,
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I didn't sign up for this.
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Let me get a drink.
217
00:10:00,109 --> 00:10:02,736
Well, actually, I need
to buy my German crew
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00:10:02,760 --> 00:10:03,686
some Gluwein
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00:10:03,710 --> 00:10:05,483
and explain why they won't get paid
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00:10:05,507 --> 00:10:06,958
until after Christmas.
221
00:10:07,815 --> 00:10:09,868
You see, transferring
money from Australia,
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00:10:09,892 --> 00:10:10,702
where I live,
223
00:10:10,726 --> 00:10:12,313
to Germany can take several days,
224
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and it will cost $30 plus exchange fees
225
00:10:14,808 --> 00:10:18,337
just for updating numbers
in digital ledgers.
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After all, it's just moving data.
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00:10:27,255 --> 00:10:28,939
I can send a picture or video
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to anyone on the planet
almost instantly, for free.
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We live in the age of the Internet,
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but the banks won't send the data
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00:10:35,837 --> 00:10:38,320
after 5:00 p.m., or on a weekend?
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That doesn't make any sense.
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00:10:42,680 --> 00:10:45,483
So what if those slow
and expensive middlemen
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00:10:45,507 --> 00:10:46,612
with their multiple ledgers
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00:10:46,636 --> 00:10:49,006
could be replaced with a giant database
236
00:10:49,030 --> 00:10:51,257
synchronised over the Internet?
237
00:10:51,281 --> 00:10:53,715
That's the big idea behind Bitcoin.
238
00:10:53,739 --> 00:10:56,162
And it's run by a
decentralised global network
239
00:10:56,186 --> 00:10:59,816
of powerful mining computers
and regular laptops.
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00:11:03,139 --> 00:11:04,311
Here's how it works.
241
00:11:05,637 --> 00:11:07,111
When I pay my cameraman,
242
00:11:07,135 --> 00:11:09,379
what's really happening
is that I use my key
243
00:11:09,403 --> 00:11:10,807
to open my wallet,
244
00:11:10,831 --> 00:11:12,456
and then instruct the network
245
00:11:12,480 --> 00:11:14,481
to send Bitcoins to his address.
246
00:11:16,666 --> 00:11:18,869
Most Bitcoin apps use QR codes
247
00:11:18,893 --> 00:11:20,458
to identify and address.
248
00:11:20,482 --> 00:11:21,477
You scan it,
249
00:11:21,501 --> 00:11:22,975
then swipe to use your key,
250
00:11:22,999 --> 00:11:24,501
and approve the transaction.
251
00:11:25,337 --> 00:11:26,482
- [Narrator] This information is shared
252
00:11:26,506 --> 00:11:28,856
throughout the global
network within seconds.
253
00:11:30,552 --> 00:11:31,478
Every 10 minutes or so,
254
00:11:31,502 --> 00:11:34,854
one miner using a
tremendous amount of energy
255
00:11:34,878 --> 00:11:37,341
beats all the others in a contest
256
00:11:37,365 --> 00:11:39,163
to solve a very difficult math problem.
257
00:11:39,187 --> 00:11:41,257
That miner is authorised
258
00:11:41,281 --> 00:11:43,195
to arrange the most recent transactions
259
00:11:43,219 --> 00:11:44,923
into a structured block,
260
00:11:44,947 --> 00:11:46,925
and is rewarded in Bitcoins for this work.
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00:11:46,949 --> 00:11:49,606
All the data contained inside each block
262
00:11:49,630 --> 00:11:51,741
is represented by a check sum.
263
00:11:51,765 --> 00:11:54,004
The miner now adds the new block
264
00:11:54,028 --> 00:11:55,533
to the previous one.
265
00:11:55,557 --> 00:11:56,997
That's why it's called the blockchain.
266
00:11:57,021 --> 00:11:59,709
Now the ledger will be updated globally.
267
00:11:59,733 --> 00:12:02,456
The check sums of the previous block
268
00:12:02,480 --> 00:12:04,274
match the beginning of the new one,
269
00:12:04,298 --> 00:12:06,550
which are baked together forever.
270
00:12:06,574 --> 00:12:09,531
It's impossible to tanker
with the data inside the block
271
00:12:09,555 --> 00:12:11,527
without changing the check sums
272
00:12:11,551 --> 00:12:13,046
and breaking the chain.
273
00:12:13,070 --> 00:12:15,485
(soft music)
274
00:12:18,654 --> 00:12:20,879
- [Torsten] This immutability
is the first rule of Bitcoin.
275
00:12:20,903 --> 00:12:23,425
It means one one can ever change
276
00:12:23,449 --> 00:12:25,553
what was once recorded in the blockchain,
277
00:12:25,577 --> 00:12:27,084
or spend the same coin twice.
278
00:12:27,108 --> 00:12:29,193
That's also called censorship resistance,
279
00:12:29,217 --> 00:12:33,102
and it's critical to Bitcoin
being used as real money.
280
00:12:38,184 --> 00:12:39,699
Awarded winning journalist Laura Shin
281
00:12:39,723 --> 00:12:42,096
tells me a story about women
bloggers in Afghanistan
282
00:12:42,120 --> 00:12:44,034
being paid in Bitcoin.
283
00:12:44,058 --> 00:12:46,971
- One of the women had an abusive husband,
284
00:12:46,995 --> 00:12:48,219
and saved up here Bitcoins
285
00:12:48,243 --> 00:12:51,399
and eventually was able to divorce him
286
00:12:51,423 --> 00:12:53,964
because she was able to control her money
287
00:12:53,988 --> 00:12:55,770
when she earned the Bitcoins.
288
00:12:55,794 --> 00:12:58,160
- [Torsten] In my first
film, the early adopters
289
00:12:58,184 --> 00:13:00,787
said that this kind of
financial freedom for everyone
290
00:13:00,811 --> 00:13:02,236
was just around the corner.
291
00:13:02,260 --> 00:13:07,255
- The world's most populous
network is adopting Bitcoin,
292
00:13:07,375 --> 00:13:08,239
that's the Internet.
293
00:13:08,263 --> 00:13:12,046
The world's largest economy
is adopting Bitcoin.
294
00:13:12,070 --> 00:13:13,385
That's the internet.
295
00:13:13,409 --> 00:13:15,083
We have transcended borders.
296
00:13:15,107 --> 00:13:17,265
- It's totally failed as electronic cash.
297
00:13:17,289 --> 00:13:20,188
- [Torsten] David Gerard
says it has unbanked
298
00:13:20,212 --> 00:13:22,995
the banked more than it
has banked the unbanked.
299
00:13:23,019 --> 00:13:25,297
He's an outspoken critic
of this technology.
300
00:13:25,321 --> 00:13:28,296
- It's not very good as a payment system.
301
00:13:28,320 --> 00:13:30,787
There a small payment in this case
302
00:13:30,811 --> 00:13:33,435
if you want to trade in things
303
00:13:33,459 --> 00:13:34,950
the Government doesn't
want you to trade in.
304
00:13:34,974 --> 00:13:37,091
- [Torsten] That's David's polite way
305
00:13:37,115 --> 00:13:38,687
of saying illegal stuff.
306
00:13:38,711 --> 00:13:40,847
- In 2011, most of my partner colleagues
307
00:13:40,847 --> 00:13:41,996
- In 2011, most of my partner colleagues
(soft music)
308
00:13:41,996 --> 00:13:42,020
(soft music)
309
00:13:42,020 --> 00:13:43,209
were saying three things.
(soft music)
310
00:13:43,209 --> 00:13:44,110
were saying three things.
311
00:13:44,134 --> 00:13:45,385
It was either drugs,
pornography, or arm sales.
312
00:13:53,199 --> 00:13:54,793
- [Torsten] The Silk
Road was a black market
313
00:13:54,817 --> 00:13:55,802
on the dark web
314
00:13:55,826 --> 00:13:57,237
where the buyers and sellers used Bitcoins
315
00:13:57,261 --> 00:13:59,764
to fly under the radar of the authorities.
316
00:13:59,788 --> 00:14:02,355
It had one million users
317
00:14:02,379 --> 00:14:05,334
until the FBI showed up and shut it down.
318
00:14:05,358 --> 00:14:07,999
They caught this guy for running it,
319
00:14:08,023 --> 00:14:10,247
and confiscated the coins held in escrow
320
00:14:10,271 --> 00:14:11,867
by snatching his computer.
321
00:14:11,891 --> 00:14:14,723
And then they locked him away for life.
322
00:14:14,747 --> 00:14:16,951
Seems like a pretty straight forward case
323
00:14:16,975 --> 00:14:19,209
of law enforcement doing their job,
324
00:14:19,233 --> 00:14:21,789
but in crypto, not
everybody sees it that way.
325
00:14:21,813 --> 00:14:24,364
(soft music)
326
00:14:24,388 --> 00:14:25,952
- People have an absolute right
327
00:14:25,976 --> 00:14:27,830
to put whatever they
want in their own bodies
328
00:14:27,854 --> 00:14:29,818
because their bodies belong to them.
329
00:14:29,842 --> 00:14:31,217
That makes Ross Ulbricht
330
00:14:31,241 --> 00:14:32,945
and the users of the Silk Road heroes,
331
00:14:32,969 --> 00:14:34,892
not criminal law breakers in a bad sense.
332
00:14:34,915 --> 00:14:37,461
They are criminal law
breakers in a good sense
333
00:14:37,485 --> 00:14:39,872
the same way that Harriet
Tubman or Rosa Parks,
334
00:14:39,896 --> 00:14:41,477
or you know, Thomas Jefferson,
335
00:14:41,501 --> 00:14:42,971
or George Washington were.
336
00:14:42,995 --> 00:14:47,001
- [Torsten] No doubt
cryptocurrencies can be a tool
337
00:14:47,025 --> 00:14:48,394
for criminal activity.
338
00:14:48,418 --> 00:14:49,948
But so are dollar bills
339
00:14:49,972 --> 00:14:51,157
or the banking system.
340
00:14:51,181 --> 00:14:55,744
And let's not forget the
blockchain is a public ledger.
341
00:14:55,768 --> 00:14:57,850
- It's actually been quite useful
342
00:14:57,874 --> 00:14:59,305
for uncovering crimes.
343
00:14:59,329 --> 00:15:01,969
A former federal prosecutor
named Kathryn Haun,
344
00:15:01,993 --> 00:15:04,034
she was the one who discovered
345
00:15:04,058 --> 00:15:06,296
that there were a couple
federal agents that
346
00:15:07,694 --> 00:15:10,757
were pilfering the Bitcoins
that the Government had obtained
347
00:15:10,781 --> 00:15:11,697
from the Silk Road case
348
00:15:11,721 --> 00:15:12,925
for their own gain.
349
00:15:12,949 --> 00:15:14,963
And what was interesting
350
00:15:14,987 --> 00:15:16,939
was she got a tip that there might be one,
351
00:15:16,963 --> 00:15:19,553
one agent that was doing this.
352
00:15:19,577 --> 00:15:21,916
But from looking at the movements
353
00:15:21,940 --> 00:15:22,945
on the blockchain itself,
354
00:15:22,969 --> 00:15:24,607
she realised that there were two people.
355
00:15:24,631 --> 00:15:27,560
- [Torsten] The prosecutor could see
356
00:15:27,584 --> 00:15:29,104
those Bitcoins being moved.
357
00:15:29,128 --> 00:15:31,798
And when the dirty cops tried
to sell them for dollars,
358
00:15:31,822 --> 00:15:34,025
they got busted.
359
00:15:34,049 --> 00:15:36,464
(soft music)
360
00:15:40,042 --> 00:15:42,565
But what makes Bitcoins worth stealing?
361
00:15:42,589 --> 00:15:44,341
Why do they have value at all?
362
00:15:45,596 --> 00:15:47,135
- [Narrator] Let's go back
to where Bitcoins are stored
363
00:15:47,159 --> 00:15:50,202
in transparent digital deposit boxes,
364
00:15:50,226 --> 00:15:52,146
protected by strong cryptography.
365
00:15:52,170 --> 00:15:55,642
They can never be copied
or leave the vault
366
00:15:55,665 --> 00:15:57,293
because any transaction of any Bitcoin,
367
00:15:57,317 --> 00:16:00,697
down to a 100 millionth fraction
368
00:16:00,721 --> 00:16:03,854
is recorded in the
blockchain for eternity.
369
00:16:03,878 --> 00:16:05,632
This synchronised global ledger
370
00:16:05,656 --> 00:16:07,621
is shared among thousands
of computers worldwide.
371
00:16:07,645 --> 00:16:10,818
That's why it can't be
compromised or altered.
372
00:16:10,842 --> 00:16:12,058
Think about that.
373
00:16:12,082 --> 00:16:15,443
We can make an infinite number
of perfect digital copies
374
00:16:15,467 --> 00:16:17,498
of a movie, a song, any file,
375
00:16:17,522 --> 00:16:19,507
but for the first time in history,
376
00:16:19,531 --> 00:16:21,676
this distributed record keeping
377
00:16:21,700 --> 00:16:24,533
allows us to have a
truly unique and fungible
378
00:16:24,557 --> 00:16:27,296
digital object that is also scarce.
379
00:16:27,320 --> 00:16:30,256
If you could count all
of these virtual coins,
380
00:16:30,280 --> 00:16:33,347
you'd find about 18 million of them today.
381
00:16:33,371 --> 00:16:35,672
The mining reward is the only way
382
00:16:35,696 --> 00:16:37,013
new coins are created.
383
00:16:37,037 --> 00:16:39,399
(soft music)
384
00:16:39,423 --> 00:16:40,613
In the first years of Bitcoin,
385
00:16:40,637 --> 00:16:44,040
miners competed for 50
Bitcoins every 10 minutes.
386
00:16:44,065 --> 00:16:46,593
Then their reward for
processing transactions
387
00:16:46,617 --> 00:16:48,886
dropped to 25 Bitcoins,
388
00:16:48,910 --> 00:16:50,756
then 12.5,
389
00:16:50,780 --> 00:16:53,559
and then half again and
again every four years.
390
00:16:53,583 --> 00:16:57,120
It's good old fashioned supply and demand.
391
00:16:57,144 --> 00:17:00,018
If investors or users of Bitcoin
392
00:17:00,042 --> 00:17:02,410
create a higher demand than
this decreasing supply,
393
00:17:02,434 --> 00:17:04,136
the price will go up.
394
00:17:04,160 --> 00:17:07,770
When the cap of 21 million is reached,
395
00:17:07,794 --> 00:17:09,950
the protocol stops the network
from creating any more.
396
00:17:09,973 --> 00:17:13,654
It's the opposite of our
traditional money supply,
397
00:17:13,678 --> 00:17:16,056
which keeps growing and growing.
398
00:17:16,079 --> 00:17:18,493
(soft music)
399
00:17:23,888 --> 00:17:25,872
- Hmm, and unlimited amount of dollars
400
00:17:25,896 --> 00:17:28,205
versus a very limited supply of Bitcoins.
401
00:17:28,230 --> 00:17:29,792
You do the math!
402
00:17:29,816 --> 00:17:32,845
If you use Euros or dollars,
403
00:17:32,869 --> 00:17:34,983
you might not care about a
little inflation per year.
404
00:17:35,007 --> 00:17:36,672
But if your currency isn't stable,
405
00:17:36,696 --> 00:17:38,809
you might be a trillionaire on paper,
406
00:17:38,833 --> 00:17:40,218
and be dead broke.
407
00:17:40,242 --> 00:17:43,655
(slow suspenseful music)
408
00:17:45,057 --> 00:17:46,192
- I grew up in Patagonia
409
00:17:46,216 --> 00:17:47,500
in the southern part of Argentina.
410
00:17:47,524 --> 00:17:49,078
My parents are sheep ranchers there.
411
00:17:49,102 --> 00:17:52,216
And I remember growing up in my childhood,
412
00:17:52,240 --> 00:17:54,266
I saw my parents loose
everything three times.
413
00:17:54,290 --> 00:17:56,935
First because of a huge devaluation,
414
00:17:56,959 --> 00:17:58,634
then because of hyperinflation,
415
00:17:58,658 --> 00:18:01,265
and the last time because the
Government confiscated all
416
00:18:01,289 --> 00:18:03,824
our bank deposits.
417
00:18:03,848 --> 00:18:05,293
I think that today,
418
00:18:05,317 --> 00:18:08,290
there are billions of people,
419
00:18:08,314 --> 00:18:09,458
at least four billion people
420
00:18:09,482 --> 00:18:11,197
who would be a lot better off
421
00:18:11,221 --> 00:18:12,917
by having access to a form of money
422
00:18:12,941 --> 00:18:17,016
that is non-political and more democratic.
423
00:18:17,040 --> 00:18:22,035
(soft music)
(muffled speech)
424
00:18:24,427 --> 00:18:25,552
- We think of finance.
425
00:18:25,576 --> 00:18:26,442
We think of banking.
426
00:18:26,466 --> 00:18:27,750
We think of money.
427
00:18:27,774 --> 00:18:30,355
In terms of the experience and perspective
428
00:18:30,379 --> 00:18:32,982
of Western European or
developed nation person,
429
00:18:33,006 --> 00:18:37,710
and that is really just a
billion and a half people
430
00:18:37,734 --> 00:18:40,987
who have a very privileged financial life.
431
00:18:41,011 --> 00:18:42,705
What about the other six billion?
432
00:18:42,729 --> 00:18:45,179
Every single country that is free
433
00:18:45,203 --> 00:18:50,088
has essentially a legal
status for cryptocurrencies
434
00:18:50,112 --> 00:18:52,036
that is very open and permissive.
435
00:18:52,060 --> 00:18:54,263
And every single country that is unfree
436
00:18:54,287 --> 00:18:58,710
has restrictive or banned
cryptocurrency status.
437
00:18:58,734 --> 00:19:01,149
(soft music)
438
00:19:16,685 --> 00:19:18,210
- This is the Berlin Wall,
439
00:19:18,234 --> 00:19:19,498
still a powerful symbol
440
00:19:19,522 --> 00:19:22,871
of a Government trying
to control its citizens.
441
00:19:22,895 --> 00:19:26,519
But this is what happens when people
442
00:19:26,543 --> 00:19:28,605
want to be free.
443
00:19:28,629 --> 00:19:32,149
The very first open crypto-war
is playing out in Venezuela
444
00:19:32,173 --> 00:19:35,512
where the local currency
loses value every hour
445
00:19:35,536 --> 00:19:37,191
due to hyperinflation.
446
00:19:37,215 --> 00:19:38,419
- A lot of people in Venezuela
447
00:19:38,443 --> 00:19:39,788
are trying to mine cryptocurrencies.
448
00:19:39,812 --> 00:19:43,464
And the government views
this as a threat obviously
449
00:19:43,488 --> 00:19:46,861
because they're trying to
keep the Bolivar propped up.
450
00:19:46,885 --> 00:19:48,769
The government actually
provided electricity
451
00:19:48,793 --> 00:19:49,602
to a lot of people,
452
00:19:49,626 --> 00:19:52,387
and if they perceive that
your electricity usage
453
00:19:52,411 --> 00:19:53,664
has gone up,
454
00:19:53,688 --> 00:19:56,751
they will come and check if
you have mining equipment
455
00:19:56,775 --> 00:19:58,709
in your house, and they will confiscate it
456
00:19:58,733 --> 00:20:00,587
if they find it.
457
00:20:00,611 --> 00:20:02,385
- [Torsten] And that brings
us to the big question,
458
00:20:02,409 --> 00:20:04,333
can Governments or banks ban Bitcoin?
459
00:20:04,357 --> 00:20:06,718
- So the title is "Jamie Dimon,
460
00:20:06,742 --> 00:20:09,219
"Here's why you're wrong about Bitcoin".
461
00:20:09,243 --> 00:20:10,919
- [Torsten] Dimon runs JP Morgan Chase,
462
00:20:10,943 --> 00:20:13,215
one of the largest banks in the world
463
00:20:13,239 --> 00:20:15,892
that moves $6 trillion every single day.
464
00:20:15,916 --> 00:20:17,011
- Oh, you said of Bitcoin
465
00:20:17,035 --> 00:20:18,666
eventually it will be closed.
466
00:20:18,690 --> 00:20:21,336
And then I said to
anyone who knows anything
467
00:20:21,360 --> 00:20:24,111
about the technology, this is an
incredibly absurd statement.
468
00:20:24,135 --> 00:20:27,610
I even said it was a little bit hilarious
469
00:20:27,634 --> 00:20:29,688
because I find it kind of funny
470
00:20:29,712 --> 00:20:32,186
the idea that you thought
you could close Bitcoin.
471
00:20:32,210 --> 00:20:34,865
But you'd have to shut down the Internet,
472
00:20:34,889 --> 00:20:36,726
which also doesn't make sense.
473
00:20:36,750 --> 00:20:39,179
I could understand if you
wanted Bitcoin shut down,
474
00:20:39,203 --> 00:20:40,657
or hoped it was a fraud.
475
00:20:40,681 --> 00:20:41,537
I mean if I were you,
476
00:20:41,561 --> 00:20:43,414
and if I really understood the disruption
477
00:20:43,438 --> 00:20:45,562
that crypto assets could
bring to financial services,
478
00:20:45,586 --> 00:20:47,041
I'd be very scared.
479
00:20:47,065 --> 00:20:48,579
- And I think whatever Jamie Dimon
480
00:20:48,603 --> 00:20:49,642
says or thinks about Bitcoin
481
00:20:49,666 --> 00:20:53,000
is as relevant as whatever
the Postmaster General
482
00:20:53,024 --> 00:20:55,235
thought or said about email:
483
00:20:55,259 --> 00:20:56,912
Who cares?
484
00:20:56,936 --> 00:20:59,505
- Then I wrote sincerely, Laura Shin.
485
00:21:01,021 --> 00:21:02,196
- [Torsten] But some politicians
486
00:21:02,220 --> 00:21:04,935
still think they can stop
open source software.
487
00:21:04,959 --> 00:21:08,100
- I look for colleagues to join with me
488
00:21:08,124 --> 00:21:12,832
in introducing a bill to
outlaw cryptocurrency purchases
489
00:21:12,856 --> 00:21:16,532
by Americans so that
we nip this in the bud
490
00:21:16,556 --> 00:21:21,551
in part because an awful lot
of our international power
491
00:21:21,612 --> 00:21:24,403
comes from the fact that the dollar
492
00:21:24,427 --> 00:21:26,937
is the standard unit of
international finance
493
00:21:26,961 --> 00:21:30,663
and transactions clearing
through the New York Fed
494
00:21:30,687 --> 00:21:34,294
is critical for major oil
and other transactions.
495
00:21:34,318 --> 00:21:37,131
And it is the announced purpose
496
00:21:37,155 --> 00:21:38,829
of the supporters of cryptocurrency
497
00:21:38,853 --> 00:21:41,403
to take that power away from us.
498
00:21:41,427 --> 00:21:45,256
- Cryptocurrency represents a
litmus test for Governments.
499
00:21:45,280 --> 00:21:50,186
It reveals how much your
Government believes in,
500
00:21:50,210 --> 00:21:54,749
in the fundamental
freedoms and Human Rights
501
00:21:54,773 --> 00:21:58,859
because if they don't
trust their own citizens
502
00:21:58,883 --> 00:22:01,047
to have control over their own money,
503
00:22:01,071 --> 00:22:01,907
that says a lot about the government
504
00:22:01,931 --> 00:22:04,391
and says very little about cryptocurrency.
505
00:22:04,415 --> 00:22:07,980
- [Torsten] You see, the
reason why some Governments
506
00:22:08,004 --> 00:22:10,267
and most banks are
threatened by this technology
507
00:22:10,291 --> 00:22:13,264
is simple, your private
key and your wallet
508
00:22:13,288 --> 00:22:15,042
can replace your bank account.
509
00:22:15,066 --> 00:22:17,111
The network is run by software
510
00:22:17,135 --> 00:22:19,618
and its currency is made and maintained
511
00:22:19,642 --> 00:22:21,726
by computing power and electricity.
512
00:22:21,750 --> 00:22:22,964
It can't be manipulated
513
00:22:22,988 --> 00:22:25,702
by central bankers, Wall Street lobbyists
514
00:22:25,726 --> 00:22:27,021
or politicians.
515
00:22:27,045 --> 00:22:29,801
But with new freedom
comes new responsibility.
516
00:22:29,825 --> 00:22:34,006
- Simple rule, if you control
the keys, it's your Bitcoin.
517
00:22:34,030 --> 00:22:37,222
If you don't control the
keys, it's not your Bitcoin.
518
00:22:37,246 --> 00:22:38,859
Your keys, your Bitcoin.
519
00:22:38,883 --> 00:22:41,313
Not your keys, not your Bitcoin.
520
00:22:41,337 --> 00:22:42,337
Your keys, your Bitcoin.
521
00:22:43,395 --> 00:22:45,358
Not your keys, not your Bitcoin.
522
00:22:45,382 --> 00:22:47,490
- [Torsten] Got that?
523
00:22:47,514 --> 00:22:48,679
If you lose your key,
524
00:22:48,703 --> 00:22:50,770
you will never be able to
access your coins again.
525
00:22:50,794 --> 00:22:52,945
And if someone hacks your computer
526
00:22:52,969 --> 00:22:54,489
where you store those passwords,
527
00:22:54,513 --> 00:22:56,803
your coins will be stolen in a second.
528
00:22:56,827 --> 00:22:59,368
And remember how Wences's family
529
00:22:59,392 --> 00:23:01,673
had their money stolen
by their own government?
530
00:23:01,697 --> 00:23:04,873
Well, maybe that's why
he built the Fort Knox
531
00:23:04,897 --> 00:23:06,435
of Bitcoin security, Xapo.
532
00:23:06,459 --> 00:23:08,909
- Most of our seven million customers
533
00:23:08,933 --> 00:23:10,307
are in emerging markets.
534
00:23:10,331 --> 00:23:14,103
In countries where there is
problems with the currency,
535
00:23:14,127 --> 00:23:16,511
we have explosions in
activity like Venezuela
536
00:23:16,535 --> 00:23:18,079
right now or Turkey.
537
00:23:18,103 --> 00:23:20,097
And we develop this system of vault
538
00:23:20,121 --> 00:23:22,735
where we have five private keys
539
00:23:22,759 --> 00:23:24,873
for each one of our Bitcoin addresses.
540
00:23:24,897 --> 00:23:26,924
We keep those private keys
541
00:23:26,948 --> 00:23:30,467
in an offline server that
has never been online,
542
00:23:30,491 --> 00:23:31,347
will never be online.
543
00:23:31,371 --> 00:23:32,495
It's inside the vault.
544
00:23:32,519 --> 00:23:34,693
The vault is inside a bunker,
545
00:23:34,717 --> 00:23:36,022
usually deep underground.
546
00:23:36,046 --> 00:23:37,430
Our main one is in Switzerland
547
00:23:37,454 --> 00:23:40,082
in a decommissioned military bunker.
548
00:23:40,106 --> 00:23:42,905
- [Torsten] I just had
to see it for myself
549
00:23:42,929 --> 00:23:44,994
even though it took months for
us to get cleared for a tour.
550
00:23:45,018 --> 00:23:47,432
(soft music)
551
00:24:00,381 --> 00:24:02,016
We were met by Christoph Oschwald,
552
00:24:02,040 --> 00:24:04,663
a former military commander
who runs the place,
553
00:24:04,687 --> 00:24:06,661
and a representative from Xapo.
554
00:24:06,685 --> 00:24:09,278
Christoph said the guards
would rather shoot us
555
00:24:09,302 --> 00:24:10,682
than show us around.
556
00:24:10,706 --> 00:24:14,253
I hope he was kidding.
557
00:24:14,277 --> 00:24:17,214
- They need to bring in the material
558
00:24:17,238 --> 00:24:20,041
to the other side of the personal lock.
559
00:24:20,065 --> 00:24:23,653
- [Torsten] First up, one
more check of our IDs,
560
00:24:23,677 --> 00:24:26,551
a pat down for weapons or
any other monkey business,
561
00:24:26,575 --> 00:24:28,895
and gear inspection.
562
00:24:28,919 --> 00:24:32,298
Even the boss was searched.
563
00:24:32,322 --> 00:24:36,349
It took nearly an hour to
get my team through security,
564
00:24:36,373 --> 00:24:38,009
but it was worth it.
565
00:24:38,033 --> 00:24:40,817
No other film crew has
been allowed access.
566
00:24:40,841 --> 00:24:44,333
- We are the largest custodian
of Bitcoin in the world
567
00:24:44,357 --> 00:24:46,571
because a lot of the
largest holders in the world
568
00:24:46,595 --> 00:24:48,676
use us for security.
569
00:24:48,700 --> 00:24:50,200
- [Torsten] Rumour has it
570
00:24:50,224 --> 00:24:52,509
that 10% of all Bitcoins are stored here
571
00:24:52,533 --> 00:24:54,930
and in their four other secret locations.
572
00:24:54,954 --> 00:24:58,029
(soft music)
573
00:24:58,053 --> 00:25:00,774
- Unfortunately, I can't
confirm any of those numbers.
574
00:25:02,089 --> 00:25:03,144
- From the mountain,
575
00:25:03,168 --> 00:25:07,110
we are getting a lot of benefits, right?
576
00:25:07,134 --> 00:25:08,400
Earthquake proof,
577
00:25:08,424 --> 00:25:10,102
flooding proof,
578
00:25:10,126 --> 00:25:12,325
but on the other side,
579
00:25:12,349 --> 00:25:14,433
you're facing a lot of additional costs.
580
00:25:14,457 --> 00:25:17,540
- [Torsten] Like maintaining
seven independent
581
00:25:17,564 --> 00:25:19,155
backup power supplies.
582
00:25:23,478 --> 00:25:25,422
The labyrinth of tunnels
deep into the mountain
583
00:25:25,446 --> 00:25:28,075
is interrupted by nuclear grade doors.
584
00:25:28,099 --> 00:25:30,514
(soft music)
585
00:25:38,643 --> 00:25:39,818
It's a level of security
586
00:25:39,842 --> 00:25:42,575
applied to all of the data
Christoph protects here,
587
00:25:42,599 --> 00:25:43,599
not just for Xapo.
588
00:25:45,216 --> 00:25:47,116
- We cannot talk too much about it
589
00:25:47,140 --> 00:25:49,977
because it's pretty
secret what is down there.
590
00:25:50,001 --> 00:25:51,826
- Are we allowed to film there?
591
00:25:51,850 --> 00:25:52,850
- No.
592
00:25:53,812 --> 00:25:56,691
- [Torsten] There were
doors that remained shut
593
00:25:56,715 --> 00:25:58,790
and security measures we
weren't allowed to see.
594
00:25:58,814 --> 00:26:02,094
- And some of those
checks may be biometric
595
00:26:02,118 --> 00:26:04,625
including the eye and
the finger print scan
596
00:26:04,649 --> 00:26:07,680
and the fingerprint scanner
597
00:26:07,704 --> 00:26:09,568
also makes sure that you are alive
598
00:26:09,592 --> 00:26:11,156
so that you didn't cut someone's finger
599
00:26:11,180 --> 00:26:13,374
and you're just using it to open the gate.
600
00:26:13,398 --> 00:26:14,466
- So you must have a pulse.
601
00:26:14,490 --> 00:26:16,905
(soft music)
602
00:26:23,188 --> 00:26:25,186
- Don't touch the racks.
603
00:26:27,923 --> 00:26:29,868
- [Torsten] These aren't
Xapo's actual servers,
604
00:26:29,892 --> 00:26:32,151
but if you've ever wondered
what cryptocurrency thieves
605
00:26:32,175 --> 00:26:35,001
dream about, it's sitting
somewhere down here
606
00:26:35,025 --> 00:26:37,200
unplugged from the Internet.
607
00:26:37,224 --> 00:26:39,128
- There is absolutely no way,
608
00:26:39,152 --> 00:26:43,380
zero way to attack the data
on the cold storage site.
609
00:26:43,404 --> 00:26:45,722
- [Torsten] But here's my question,
610
00:26:45,746 --> 00:26:48,309
why do I need the cold offline servers
611
00:26:48,333 --> 00:26:49,276
to be inside a mountain?
612
00:26:49,300 --> 00:26:51,546
Why can't it be in my basement?
613
00:26:51,570 --> 00:26:52,935
- While the server is in the basement,
614
00:26:52,959 --> 00:26:55,163
it still can be stolen, right?
615
00:26:55,187 --> 00:26:58,619
So this is like money.
616
00:26:58,643 --> 00:27:00,377
It is data, yes,
617
00:27:00,401 --> 00:27:01,746
it's bits and bytes,
618
00:27:01,770 --> 00:27:03,671
but it is money at the end,
619
00:27:03,695 --> 00:27:05,232
and a lot of money.
620
00:27:05,256 --> 00:27:07,180
This is why this data centre here
621
00:27:07,204 --> 00:27:09,819
is more a bank than a data centre.
622
00:27:09,843 --> 00:27:12,125
(soft music)
623
00:27:12,149 --> 00:27:13,057
- [Torsten] Okay, let's do a quick recap.
624
00:27:13,081 --> 00:27:16,131
We now have billions of
dollars worth of data
625
00:27:16,155 --> 00:27:17,440
secured in digital banks
626
00:27:17,464 --> 00:27:19,405
deep inside secret military bunkers.
627
00:27:19,429 --> 00:27:21,406
If you don't think Bitcoin
628
00:27:21,430 --> 00:27:23,873
is already changing the
world's concept of money,
629
00:27:23,897 --> 00:27:25,596
you haven't been paying attention.
630
00:27:26,795 --> 00:27:28,279
Remember Mervyn?
631
00:27:28,303 --> 00:27:30,667
He used to be a senior
executive at Deutsche Bank.
632
00:27:30,691 --> 00:27:32,152
His colleagues once said Bitcoin
633
00:27:32,176 --> 00:27:33,714
was for law breakers and troublemakers.
634
00:27:33,738 --> 00:27:37,747
He now runs $100 million
crypto fund out of Malta.
635
00:27:39,642 --> 00:27:43,906
- Our research shows
that the crypto markets
636
00:27:43,930 --> 00:27:48,848
are gonna probably be worth
about $8.7 trillion in 2027.
637
00:27:48,872 --> 00:27:51,416
- Which is 50x from today.
638
00:27:51,440 --> 00:27:52,440
- Exactly.
639
00:27:58,313 --> 00:27:59,628
- [Torsten] Most financial analysts
640
00:27:59,652 --> 00:28:02,348
say you better stick to your
shares and bonds and dollars.
641
00:28:02,372 --> 00:28:03,947
Bitcoin is dangerous nonsense,
642
00:28:03,971 --> 00:28:06,446
far too risky as investment.
643
00:28:06,470 --> 00:28:09,308
To others, Bitcoin is an escape hatch
644
00:28:09,332 --> 00:28:11,516
that will take them away from risk,
645
00:28:11,540 --> 00:28:13,456
an insurance against financial doomsday,
646
00:28:13,480 --> 00:28:15,991
a way out of the debt crisis,
647
00:28:16,015 --> 00:28:17,370
negative interest rates,
648
00:28:17,394 --> 00:28:20,167
trade wars, and economic downturn.
649
00:28:20,191 --> 00:28:22,177
They say it's an anti-fragile asset
650
00:28:22,201 --> 00:28:25,262
uncorrelated to financial markets.
651
00:28:25,286 --> 00:28:26,701
So who's right here?
652
00:28:26,725 --> 00:28:28,729
Well, every time I turn on the television,
653
00:28:28,753 --> 00:28:30,207
it gets even more confusing.
654
00:28:30,231 --> 00:28:31,431
- Bitcoin is worth about a bit
655
00:28:32,873 --> 00:28:33,683
under $200 billion today.
656
00:28:33,707 --> 00:28:36,361
All the gold in the world
is worth eight trillion,
657
00:28:36,385 --> 00:28:38,589
and it could become the next gold.
658
00:28:38,613 --> 00:28:41,596
- In terms of cryptocurrencies, generally,
659
00:28:41,620 --> 00:28:44,842
I can say almost with certainty
660
00:28:44,866 --> 00:28:47,114
that they will come to a bad ending.
661
00:28:47,138 --> 00:28:51,076
- But if Bitcoin is out
there, and gold is out there,
662
00:28:51,100 --> 00:28:54,543
it can be a participant in
bringing down the dollar.
663
00:28:54,567 --> 00:28:56,261
- I say it's the mother of all bubbles,
664
00:28:56,285 --> 00:28:58,499
and it's also the biggest
bubble in human history.
665
00:28:58,523 --> 00:29:00,247
- Do you think this is a currency?
666
00:29:00,271 --> 00:29:01,961
A currency that's really
gonna work eventually?
667
00:29:01,985 --> 00:29:04,070
- Well, I think it is working.
668
00:29:04,094 --> 00:29:07,550
And there will be other currencies like it
669
00:29:07,574 --> 00:29:09,098
that may be even better.
670
00:29:09,122 --> 00:29:11,022
- Bitcoin is successful
671
00:29:11,046 --> 00:29:15,169
only because of its
potential for circumvention,
672
00:29:15,193 --> 00:29:17,658
lack of oversight.
673
00:29:17,682 --> 00:29:20,040
So it seems to me it ought to be outlawed.
674
00:29:20,064 --> 00:29:23,175
It doesn't serve any
social useful function.
675
00:29:23,199 --> 00:29:26,011
- [Torsten] This film
isn't investment advice,
676
00:29:26,035 --> 00:29:27,958
but it strikes me that
most of these TV shows
677
00:29:27,982 --> 00:29:29,769
just want to stir controversy.
678
00:29:29,793 --> 00:29:32,453
They don't understand what's going on,
679
00:29:32,477 --> 00:29:34,413
but they know that filling airtime
680
00:29:34,437 --> 00:29:35,931
with a controversial topic
681
00:29:35,955 --> 00:29:37,336
will get them higher ratings.
682
00:29:37,360 --> 00:29:39,264
So how about the general public?
683
00:29:39,288 --> 00:29:41,955
In America, the younger generation
684
00:29:41,979 --> 00:29:44,135
already starts to trust
this new asset class
685
00:29:44,159 --> 00:29:46,141
and Wences says Bitcoin
686
00:29:46,165 --> 00:29:48,189
may reach a million dollars per coin.
687
00:29:48,213 --> 00:29:52,924
- I would say the
biggest financial mistake
688
00:29:52,948 --> 00:29:53,983
you can make right now
689
00:29:54,007 --> 00:29:55,931
is to own an amount of Bitcoin
690
00:29:55,955 --> 00:29:57,280
that you cannot afford to lose
691
00:29:57,304 --> 00:29:59,518
because it's super risky
and you may lose it.
692
00:29:59,542 --> 00:30:01,606
The second biggest financial
mistake you can make
693
00:30:01,630 --> 00:30:03,114
is not to own any.
694
00:30:03,138 --> 00:30:08,133
Because you put 1% of
your net worth in Bitcoin.
695
00:30:08,394 --> 00:30:12,234
Most people can afford to
lose 1% of their net worth.
696
00:30:12,258 --> 00:30:13,484
And if I am right,
697
00:30:13,508 --> 00:30:15,791
it's gonna be more than
100% of your net worth,
698
00:30:15,815 --> 00:30:17,363
so with a non-material exposure,
699
00:30:17,387 --> 00:30:19,098
you change your life.
700
00:30:19,122 --> 00:30:21,845
Now what you would spend
on a romantic weekend
701
00:30:21,869 --> 00:30:22,745
with your wife,
702
00:30:22,769 --> 00:30:25,531
say sorry, we're not gonna
do that this weekend.
703
00:30:25,555 --> 00:30:27,066
I'm gonna just buy Bitcoin.
704
00:30:27,090 --> 00:30:28,420
Consider it spent.
705
00:30:28,444 --> 00:30:30,698
It disappears, and check in seven years.
706
00:30:30,722 --> 00:30:34,752
I either give you bad advice,
and cost you a weekend,
707
00:30:34,776 --> 00:30:37,170
or I want a grandkid called Wencito.
708
00:30:37,194 --> 00:30:39,275
(laughs)
709
00:30:40,141 --> 00:30:43,044
- But what you fail to
mention is that the currency,
710
00:30:43,068 --> 00:30:44,283
the micro transaction.
711
00:30:44,307 --> 00:30:46,385
- All of that is irrelevant, right?
712
00:30:46,409 --> 00:30:49,697
Meaning all of the cryptocurrencies
713
00:30:49,721 --> 00:30:50,716
are way too volatile
714
00:30:50,740 --> 00:30:52,330
for anyone to take them seriously.
715
00:30:52,354 --> 00:30:55,472
- Hold on, let's go back
to where we started.
716
00:30:55,496 --> 00:30:57,780
Bitcoin was created as peer
to peer electronic cash.
717
00:30:57,804 --> 00:30:59,408
That was the killer app,
718
00:30:59,432 --> 00:31:01,104
a payment directly from you to me,
719
00:31:01,128 --> 00:31:03,276
from me to the coffee shop.
720
00:31:03,300 --> 00:31:06,851
- I have bought a bag of coffee
721
00:31:06,875 --> 00:31:09,952
for two Bitcoin in 2012,
722
00:31:09,976 --> 00:31:14,971
which today costs me
$12,000 in today's money.
723
00:31:15,176 --> 00:31:17,786
That is a deflationary effect.
724
00:31:17,810 --> 00:31:22,385
As long as Bitcoin keeps doing
sudden increases in prices,
725
00:31:22,409 --> 00:31:25,779
that's gonna stop retail
use in it's tracks.
726
00:31:25,803 --> 00:31:29,068
- With Bitcoin, you can
send $1 or $1 million
727
00:31:29,092 --> 00:31:31,006
worth of value anywhere in the world.
728
00:31:31,030 --> 00:31:32,212
You can do it for free.
729
00:31:32,236 --> 00:31:34,283
- [Torsten] But basically,
looking at it now,
730
00:31:34,307 --> 00:31:35,559
you lied to us.
731
00:31:35,583 --> 00:31:38,029
Yeah, that's what they
all used to tell me,
732
00:31:38,053 --> 00:31:42,215
cheap, easy, fast, global, unstoppable.
733
00:31:42,239 --> 00:31:45,052
I'm not done with you, pal.
734
00:31:45,076 --> 00:31:46,763
But I need to explain what happened here.
735
00:31:46,787 --> 00:31:50,178
Every block contains about
one megabyte of data,
736
00:31:50,202 --> 00:31:53,006
much smaller than a photo
you post on Instagram.
737
00:31:53,030 --> 00:31:57,010
That means only a limited
number of transactions
738
00:31:57,034 --> 00:31:58,818
can fit into each block.
739
00:31:58,842 --> 00:32:00,581
If you want your payment to jump the line,
740
00:32:00,605 --> 00:32:02,773
you can choose to pay a premium fee
741
00:32:02,797 --> 00:32:04,537
or sit and wait.
742
00:32:04,561 --> 00:32:06,865
At one point, the blocks became so full
743
00:32:06,889 --> 00:32:09,800
that the transaction time
went to several hundred hours.
744
00:32:09,824 --> 00:32:12,342
That's days!
745
00:32:12,366 --> 00:32:15,097
And it was more expensive than
international wire services.
746
00:32:15,121 --> 00:32:18,569
It got so bad that a Bitcoin conference
747
00:32:18,593 --> 00:32:20,667
wouldn't take payment in Bitcoins!
748
00:32:20,691 --> 00:32:23,503
And he's the guy who promised
me moving money fast and for free.
749
00:32:23,527 --> 00:32:26,767
What went wrong?
750
00:32:26,791 --> 00:32:29,957
- That's a direct intentional result
751
00:32:29,981 --> 00:32:31,496
of Bitcoin Core's policies
752
00:32:31,520 --> 00:32:33,414
of intentionally making it slow,
753
00:32:33,438 --> 00:32:34,951
expensive and unreliable.
754
00:32:34,975 --> 00:32:36,974
- [Torsten] And Roger blames this guy
755
00:32:37,876 --> 00:32:40,718
for Bitcoin not becoming a
mainstream global currency.
756
00:32:40,742 --> 00:32:44,458
- There are no shortage
of conspiracy theories.
757
00:32:44,482 --> 00:32:45,482
-
758
00:32:46,415 --> 00:32:48,907
- Blockstream was founded in 2014.
759
00:32:48,931 --> 00:32:52,634
The original co-founders are
a lot of core developers.
760
00:32:52,658 --> 00:32:54,053
- [Torsten] Those are the software coders
761
00:32:54,077 --> 00:32:56,514
who continue building Bitcoin
after Satoshi vanished.
762
00:32:56,538 --> 00:33:00,008
Roger thinks those guys sabotaged
the scaling of the network
763
00:33:00,032 --> 00:33:03,339
so Blockstream could promote
its own software solutions.
764
00:33:03,363 --> 00:33:05,218
Sampson says come on,
765
00:33:05,242 --> 00:33:07,965
the blockchain is already 200
Gigabytes large and growing.
766
00:33:07,989 --> 00:33:10,250
- Every transaction made
767
00:33:10,274 --> 00:33:12,914
has to go out to the whole network.
768
00:33:12,938 --> 00:33:15,874
And every block that contains
that transaction that is mined
769
00:33:15,898 --> 00:33:18,189
has also to go out to the whole network.
770
00:33:18,213 --> 00:33:20,358
And it has to be stored for eternity.
771
00:33:20,382 --> 00:33:22,244
- [Torsten] The argument,
772
00:33:22,268 --> 00:33:24,901
more independent miners will
continue running Bitcoin
773
00:33:24,925 --> 00:33:27,085
and ensure decentralisation
774
00:33:27,109 --> 00:33:29,415
if the blockchain is kept small.
775
00:33:29,439 --> 00:33:31,647
In his view, this decentralisation
776
00:33:31,671 --> 00:33:33,446
is what makes Bitcoin valuable,
777
00:33:33,470 --> 00:33:35,299
a store of value!
778
00:33:35,323 --> 00:33:38,229
- So holding Bitcoin is also a use case.
779
00:33:38,253 --> 00:33:39,857
- And that store money hypothesis,
780
00:33:39,881 --> 00:33:41,076
I cannot get my head around.
781
00:33:41,100 --> 00:33:42,098
It's the most,
782
00:33:42,122 --> 00:33:45,302
like, nutty thing I've ever heard.
783
00:33:45,326 --> 00:33:47,669
- One philosophy could
be described as Bitcoin
784
00:33:47,693 --> 00:33:50,077
as digital gold, and the other philosophy
785
00:33:50,101 --> 00:33:52,225
could be described as
Bitcoin as digital cash.
786
00:33:52,249 --> 00:33:53,795
- [Torsten] The other team said
787
00:33:53,819 --> 00:33:55,827
you guys have it the wrong way around.
788
00:33:55,851 --> 00:33:58,578
First, Bitcoin needs to
be usable as a currency,
789
00:33:58,602 --> 00:34:00,686
a medium of exchange.
790
00:34:00,710 --> 00:34:02,469
Then, maybe, it will become stable
791
00:34:02,493 --> 00:34:04,113
and a store of value.
792
00:34:04,137 --> 00:34:06,520
(soft music)
793
00:34:06,544 --> 00:34:09,516
The solution is easy, just
increase the size of the blocks
794
00:34:09,541 --> 00:34:11,585
from one to two, four, eight megabytes
795
00:34:11,609 --> 00:34:13,444
so that more transactions fit into them.
796
00:34:13,467 --> 00:34:15,572
This will lower the fees,
797
00:34:15,597 --> 00:34:18,840
and people will start using
Bitcoin as cash again.
798
00:34:18,864 --> 00:34:21,235
- The original title of
the Bitcoin white paper
799
00:34:21,260 --> 00:34:23,135
is Bitcoin, an electronic peer to peer
800
00:34:23,159 --> 00:34:25,451
electronic cash system.
801
00:34:25,475 --> 00:34:27,130
- [Torsten] But you know,
Satoshi's white paper
802
00:34:27,154 --> 00:34:28,299
isn't the Bible.
803
00:34:28,322 --> 00:34:29,188
It's not a religion.
804
00:34:29,213 --> 00:34:31,266
Stuff changes, we evolve,
805
00:34:31,290 --> 00:34:32,784
we might find out new things.
806
00:34:32,808 --> 00:34:36,289
So why this fixation on that white paper
807
00:34:36,313 --> 00:34:39,417
created 10 years ago.
808
00:34:39,440 --> 00:34:40,626
- There isn't any fixation.
809
00:34:40,650 --> 00:34:42,866
It's not the version of Bitcoin
that I got involved with,
810
00:34:42,889 --> 00:34:44,166
and it's not the version of Bitcoin
811
00:34:44,190 --> 00:34:46,141
that I want to support.
812
00:34:46,165 --> 00:34:47,489
- [Torsten] So Roger joined forces
813
00:34:47,513 --> 00:34:49,474
with a controversial online
gambling billionaire, Bitmain,
814
00:34:49,498 --> 00:34:52,643
a Chinese crypto mining
company and this guy.
815
00:34:52,668 --> 00:34:57,663
- I'll do whatever the
fuck I want with my money.
816
00:34:57,817 --> 00:34:59,348
- [Torsten] Okay?!
817
00:34:59,372 --> 00:35:01,635
Anyway, they forced a software fork,
818
00:35:01,659 --> 00:35:03,746
which is a split into
two separate blockchains.
819
00:35:03,770 --> 00:35:06,717
Every holder of Bitcoin now also owned
820
00:35:06,741 --> 00:35:08,487
the same amount of Bitcoin cash.
821
00:35:08,511 --> 00:35:12,424
- Roger had nothing to do with
the creation of Bitcoin cash.
822
00:35:12,448 --> 00:35:13,347
Roger didn't know about it
823
00:35:13,371 --> 00:35:15,206
until a few weeks before
it actually happened.
824
00:35:15,230 --> 00:35:17,419
- [Torsten] But still, Bitcoin Jesus
825
00:35:17,443 --> 00:35:19,000
had become Bitcoin Judas.
826
00:35:19,024 --> 00:35:21,896
- Every revolution is followed
by the counter-revolution,
827
00:35:21,920 --> 00:35:25,404
which is usually a purge of
the original revolutionaries.
828
00:35:25,428 --> 00:35:29,745
- People are very
passionate about Bitcoin.
829
00:35:29,769 --> 00:35:34,722
And that's why they show a lot of emotion.
830
00:35:34,746 --> 00:35:36,021
- When you're part of a tribe,
831
00:35:36,045 --> 00:35:37,949
you get very religious about your tribe,
832
00:35:37,973 --> 00:35:39,923
making the other tribe almost your enemy.
833
00:35:39,947 --> 00:35:43,332
- It's very hard to debate Roger
834
00:35:43,356 --> 00:35:46,392
because a lot of what he's
saying is just his opinions
835
00:35:46,416 --> 00:35:47,739
and his emotions.
836
00:35:47,763 --> 00:35:49,882
You cannot debate someone's emotions.
837
00:35:49,906 --> 00:35:53,443
- And then they basically
diverted entire Bitcoin project
838
00:35:53,467 --> 00:35:56,670
into something that wasn't
usable as peer to peer cash.
839
00:35:56,694 --> 00:35:58,219
- When he gave his talk,
840
00:35:58,243 --> 00:36:01,465
I kinda knew that that
whole debate slash panel,
841
00:36:01,489 --> 00:36:03,214
I kind of expected it to go off the rails,
842
00:36:03,238 --> 00:36:04,842
but I didn't expect killing babies.
843
00:36:04,866 --> 00:36:05,990
- So that means more babies
844
00:36:06,014 --> 00:36:09,148
are dying in countries around the world
845
00:36:09,172 --> 00:36:11,385
because they have less economic freedom.
846
00:36:11,409 --> 00:36:13,453
More people are starving to death
847
00:36:13,477 --> 00:36:15,264
because they have less economic freedom.
848
00:36:15,288 --> 00:36:18,378
People are literally
dying because of this.
849
00:36:18,402 --> 00:36:19,259
I'm not exaggerating.
850
00:36:19,283 --> 00:36:20,773
This is a life and death matter.
851
00:36:20,797 --> 00:36:23,764
- [Torsten] And remember
that list of promises
852
00:36:23,788 --> 00:36:25,432
that early Bitcoiners championed?
853
00:36:25,456 --> 00:36:29,654
Cheap, easy, fast, unstoppable.
854
00:36:29,678 --> 00:36:31,328
I forgot one.
855
00:36:31,352 --> 00:36:33,204
- If you don't support free speech,
856
00:36:33,228 --> 00:36:34,332
you don't support Bitcoin.
857
00:36:34,356 --> 00:36:35,561
You're an enemy of Bitcoin.
858
00:36:35,585 --> 00:36:38,159
- [Torsten] Censorship
shall not be abided.
859
00:36:38,183 --> 00:36:39,767
- In fact, I myself
860
00:36:39,791 --> 00:36:41,775
have tried posting just a direct quote
861
00:36:41,799 --> 00:36:43,044
from Satoshi Nakamoto,
862
00:36:43,068 --> 00:36:44,123
the creator of Bitcoin.
863
00:36:44,147 --> 00:36:46,738
- I think Roger complains a
lot about censorship on Reddit,
864
00:36:46,762 --> 00:36:51,246
but Reddit is just one of many platforms.
865
00:36:51,270 --> 00:36:53,016
- Word for word quote from Satoshi,
866
00:36:53,040 --> 00:36:55,341
without any additional
commentary from myself at all,
867
00:36:55,365 --> 00:36:57,929
and I've had that post deleted.
868
00:36:57,953 --> 00:36:59,697
- Even though I may not
agree with a lot of things
869
00:36:59,721 --> 00:37:00,966
that Roger Ver is doing now,
870
00:37:00,990 --> 00:37:02,352
I do sympathise with him
871
00:37:02,376 --> 00:37:04,520
and his frustration with being censored.
872
00:37:04,544 --> 00:37:06,880
- They're literally censoring the words
873
00:37:06,904 --> 00:37:08,428
of the creator of Bitcoin.
874
00:37:08,452 --> 00:37:09,577
- Ultimately, it's just a forum
875
00:37:09,601 --> 00:37:11,156
that these guys set up
876
00:37:11,180 --> 00:37:12,534
to talk about Bitcoin,
877
00:37:12,558 --> 00:37:14,346
and they can do whatever
they want with it, right?
878
00:37:14,370 --> 00:37:17,030
- [Torsten] When I first
started covering this space,
879
00:37:17,054 --> 00:37:18,838
everyone was united in their struggle
880
00:37:18,862 --> 00:37:20,456
against the establishment.
881
00:37:20,480 --> 00:37:22,134
Now the industry has grown so much
882
00:37:22,158 --> 00:37:24,083
that they are competing parties,
883
00:37:24,107 --> 00:37:26,244
propaganda machines, conspiracy theories.
884
00:37:26,268 --> 00:37:28,338
Looks a lot like politics.
885
00:37:28,362 --> 00:37:30,949
- The biggest fight within
the Bitcoin ecosystem
886
00:37:30,973 --> 00:37:32,055
is over at the moment
887
00:37:32,079 --> 00:37:34,044
is who has the right to the name Bitcoin?
888
00:37:34,068 --> 00:37:35,311
But at the end of the day,
889
00:37:35,335 --> 00:37:37,439
I think the version of Bitcoin described
890
00:37:37,463 --> 00:37:38,562
in the Bitcoin white paper
891
00:37:38,586 --> 00:37:41,354
has the strongest claim
to the name Bitcoin
892
00:37:41,378 --> 00:37:42,571
than anything else.
893
00:37:42,595 --> 00:37:44,352
And that's Bitcoin Cash.
894
00:37:44,376 --> 00:37:45,825
- [Torsten] Roger owns Bitcoin.com
895
00:37:46,844 --> 00:37:48,278
and he has every intention
of bringing Bitcoin Cash
896
00:37:48,302 --> 00:37:49,627
to the masses,
897
00:37:49,651 --> 00:37:51,151
even if it means that some people
898
00:37:51,175 --> 00:37:52,524
coming to his website
899
00:37:52,548 --> 00:37:54,050
think that they're buying Bitcoin
900
00:37:54,074 --> 00:37:55,938
but they're getting Bitcoin Cash.
901
00:37:57,253 --> 00:38:00,064
- I think it's fraudulent to
say that in causing people
902
00:38:00,088 --> 00:38:03,328
to buy Bitcoin Cash when they
actually want to buy Bitcoin.
903
00:38:21,629 --> 00:38:23,054
- [Torsten] So Bitcoin core fans
904
00:38:23,078 --> 00:38:25,631
say Roger is hijacking the brand name,
905
00:38:25,655 --> 00:38:28,468
and Bitcoin Cash supports
claim that Blockstream
906
00:38:28,492 --> 00:38:31,096
is hijacking Bitcoin's development.
907
00:38:31,120 --> 00:38:32,583
- I mean yeah, it is
a conflict of interest
908
00:38:32,607 --> 00:38:36,360
because they're developing
this open source protocol
909
00:38:36,384 --> 00:38:39,662
in a way where their
company can benefit from it.
910
00:38:39,686 --> 00:38:41,345
- Everything we're doing is open source,
911
00:38:41,369 --> 00:38:45,831
so it's not like there's
some secrecy or anything.
912
00:38:45,855 --> 00:38:48,069
You can see all the code that's committed,
913
00:38:48,093 --> 00:38:49,806
and it does go through
this vetting process.
914
00:38:49,830 --> 00:38:51,746
- They have had influence.
915
00:38:51,770 --> 00:38:54,859
I wouldn't say it's not true.
916
00:38:54,883 --> 00:38:58,638
But I don't think they
have enough influence
917
00:38:58,662 --> 00:39:01,285
to actually corrupt Bitcoin.
918
00:39:01,309 --> 00:39:03,243
- We no longer have anyone
maintaining the project
919
00:39:03,267 --> 00:39:04,352
just because we don't want
920
00:39:04,376 --> 00:39:06,927
that potential conflict of interest.
921
00:39:06,951 --> 00:39:09,692
- But in a way, now they've
won the battle anyways.
922
00:39:09,716 --> 00:39:12,278
- [Torsten] So who won
Bitcoin's first war?
923
00:39:12,302 --> 00:39:14,939
Well, both parties got their way.
924
00:39:14,963 --> 00:39:18,260
After the split, the market
valued Bitcoins much higher.
925
00:39:18,284 --> 00:39:22,845
And Bitcoin Cash transaction
fees were much lower.
926
00:39:22,869 --> 00:39:25,843
- The benefit of the scaling
debate or civil war was
927
00:39:25,867 --> 00:39:27,919
Bitcoin was battle tested.
928
00:39:27,943 --> 00:39:29,477
Like a lot of companies
929
00:39:29,501 --> 00:39:30,776
and a lot of powerful people
930
00:39:30,800 --> 00:39:35,351
tried very hard to try to
change Bitcoin, and they failed.
931
00:39:35,375 --> 00:39:38,485
- This thing that
Satoshi Nakamoto launched
932
00:39:38,509 --> 00:39:42,301
is much more resilient
than anyone even hoped.
933
00:39:48,252 --> 00:39:49,587
- I know, I know, you want to find out
934
00:39:49,611 --> 00:39:51,075
what any of this has to do
935
00:39:51,099 --> 00:39:53,893
with this new crytopia,
a revolutionary internet.
936
00:39:53,917 --> 00:39:54,773
We'll get there, I promise.
937
00:39:54,797 --> 00:39:58,221
But first, we need to go from
Bitcoins original blockchain
938
00:39:58,245 --> 00:40:00,083
to hundreds of blockchains.
939
00:40:02,458 --> 00:40:05,247
Back in 2011, when Charlie
Lee was a Google engineer,
940
00:40:05,271 --> 00:40:07,489
he wanted a faster and lighter version
941
00:40:07,513 --> 00:40:09,149
of Satoshi's cryptocurrency,
942
00:40:09,173 --> 00:40:11,213
and was one of the first to experiment
943
00:40:11,237 --> 00:40:13,369
with the open source software.
944
00:40:13,393 --> 00:40:15,910
- The actual coding in terms
of the code differences
945
00:40:15,934 --> 00:40:17,849
became Bitcoin and Litecoin
946
00:40:17,873 --> 00:40:19,078
was actually pretty trivial.
947
00:40:19,102 --> 00:40:21,183
- And what does that mean in time?
948
00:40:21,207 --> 00:40:25,877
- I would say like four,
four or five hours.
949
00:40:25,901 --> 00:40:27,962
- Litecoin was positioned as silver
950
00:40:27,986 --> 00:40:29,757
to Bitcoin's gold.
951
00:40:29,781 --> 00:40:32,458
And it's network value grew
to billions of dollars.
952
00:40:32,482 --> 00:40:35,681
Some critics say: Well, you
sold at the highest point,
953
00:40:35,705 --> 00:40:37,369
and you kind of hurt the community.
954
00:40:37,393 --> 00:40:38,688
What's your response to that?
955
00:40:38,712 --> 00:40:41,145
- When I sold, no one knew
it was at the highest point.
956
00:40:41,169 --> 00:40:42,664
I didn't know it was gonna
be the highest point.
957
00:40:42,688 --> 00:40:44,098
Everyone thought it was
gonna keep going up.
958
00:40:44,122 --> 00:40:47,067
In hindsight, it was good timing,
959
00:40:47,091 --> 00:40:48,655
selling it at that high.
960
00:40:48,679 --> 00:40:51,332
But I'm still focused
full-time on Litecoin adoption,
961
00:40:51,356 --> 00:40:54,392
and working on Litecoin,
Litecoin development.
962
00:40:54,416 --> 00:40:56,626
So it's not like I sold it and just quit.
963
00:40:56,650 --> 00:40:59,846
Nobody gets to kind of dictate
964
00:40:59,870 --> 00:41:03,258
how Bitcoin improves or grows.
965
00:41:03,282 --> 00:41:08,109
Whereas with Litecoin, I
have a strong influence
966
00:41:08,133 --> 00:41:10,026
on the growth of Litecoin,
967
00:41:10,050 --> 00:41:11,211
which is good and bad.
968
00:41:11,235 --> 00:41:15,461
It's kinda like difference
between the benevolent dictator
969
00:41:15,485 --> 00:41:18,424
versus a democracy.
970
00:41:18,448 --> 00:41:20,899
The benevolent dictator is more efficient,
971
00:41:20,923 --> 00:41:22,694
but you have to assume
972
00:41:22,718 --> 00:41:24,466
that the benevolent
dictator stays benevolent.
973
00:41:24,490 --> 00:41:25,870
- Let's put a pin in that.
974
00:41:25,894 --> 00:41:29,015
Litecoin was one of the first
alternative cryptocurrencies,
975
00:41:29,039 --> 00:41:30,748
or alt-coins.
976
00:41:30,772 --> 00:41:33,877
Some of the early adopters,
like Charlie, made fortunes.
977
00:41:33,901 --> 00:41:36,090
Soon, there were hundreds of coins
978
00:41:36,114 --> 00:41:39,771
made by cryptographers,
copycats, and con-men.
979
00:41:39,795 --> 00:41:41,615
There's a coin for bloggers,
980
00:41:41,639 --> 00:41:43,426
a currency for online gamers,
981
00:41:43,450 --> 00:41:46,270
one with anonymity,
and even one for banks.
982
00:41:46,294 --> 00:41:50,100
But can this invention unleash
something even more powerful
983
00:41:50,124 --> 00:41:52,114
than digital currencies?
984
00:41:52,138 --> 00:41:54,469
(dog barks)
985
00:41:56,194 --> 00:41:59,471
Back in 2014, I met the
kid who knew how to do it.
986
00:41:59,495 --> 00:42:01,815
- Hi, I'm Vitalik Buterin,
987
00:42:01,839 --> 00:42:03,793
co-founder of Bitcoin Magazine,
988
00:42:03,817 --> 00:42:04,626
founder of Ethereum,
989
00:42:04,650 --> 00:42:07,291
and just general Bitcoin and
crypto currency advocate.
990
00:42:07,315 --> 00:42:09,212
- [Torsten] Just 19 years old,
991
00:42:09,236 --> 00:42:12,391
Vitalik was on a mission
to make money programmable.
992
00:42:16,854 --> 00:42:18,496
- Vitalik is a very very smart guy.
993
00:42:18,520 --> 00:42:21,984
The thing about Vitalik is
he was pushed away of Bitcoin
994
00:42:22,008 --> 00:42:25,661
because he had gone to to
Bitcoin Core developers
995
00:42:25,685 --> 00:42:28,418
and tried to build
Ethereum on top of Bitcoin.
996
00:42:28,442 --> 00:42:31,217
- [Torsten] And they basically
said nope, not interested.
997
00:42:31,241 --> 00:42:34,093
So he built a separate
blockchain called Ethereum,
998
00:42:34,117 --> 00:42:36,840
with its own currency called Ether.
999
00:42:36,864 --> 00:42:40,379
- A comparison might be
Bitcoin is like a spreadsheet,
1000
00:42:40,403 --> 00:42:43,664
and Ethereum is like a
spreadsheet with macros.
1001
00:42:43,688 --> 00:42:46,999
- [Torsten] Using our
analogy, Ethereum allows you
1002
00:42:47,023 --> 00:42:49,627
to store cryptocurrency and computer code
1003
00:42:49,651 --> 00:42:51,242
in the same secure box.
1004
00:42:53,487 --> 00:42:54,739
Here's how a smart contract might work.
1005
00:42:54,763 --> 00:42:57,619
Let's say I bet Charlie
1006
00:42:57,643 --> 00:43:00,636
that a Litecoin will be worth $200
1007
00:43:00,660 --> 00:43:02,588
on January 1st of next year.
1008
00:43:02,612 --> 00:43:04,862
We each put an ether into a box
1009
00:43:04,886 --> 00:43:06,440
along with a smart contract,
1010
00:43:06,464 --> 00:43:08,778
a simple programme that
automatically checks
1011
00:43:08,802 --> 00:43:10,186
the price of Litecoins
1012
00:43:10,210 --> 00:43:11,805
on that future date.
1013
00:43:11,829 --> 00:43:13,823
If I'm right, the money goes to me.
1014
00:43:13,847 --> 00:43:14,683
If I'm wrong,
1015
00:43:14,707 --> 00:43:15,818
it's sent to Charlie.
1016
00:43:20,230 --> 00:43:22,716
- A smart contract is
neither smart nor a contract.
1017
00:43:22,740 --> 00:43:24,256
It's a dumb program.
1018
00:43:24,280 --> 00:43:27,774
And once you understand that
all it is a dumb program,
1019
00:43:27,798 --> 00:43:29,579
that clarifies a lot of stuff.
1020
00:43:29,603 --> 00:43:32,642
And the word contract there
is in the meaning of finance.
1021
00:43:32,666 --> 00:43:35,603
- [Narrator] Most financial arrangements
1022
00:43:35,627 --> 00:43:37,823
are pretty simple and clear cut.
1023
00:43:37,847 --> 00:43:39,537
A bet with Charlie,
1024
00:43:39,561 --> 00:43:40,467
your home loan,
1025
00:43:40,491 --> 00:43:41,597
and insurance policy,
1026
00:43:41,621 --> 00:43:44,653
just two parties and some
form of exchange of value
1027
00:43:44,677 --> 00:43:47,170
based on a set of rules called a contract.
1028
00:43:47,194 --> 00:43:49,646
The same is true for
global financial markets.
1029
00:43:49,670 --> 00:43:52,643
Think bonds, futures, derivatives,
1030
00:43:52,667 --> 00:43:54,612
credit default swaps.
1031
00:43:54,636 --> 00:43:56,330
They're all just contracts,
1032
00:43:56,354 --> 00:43:58,715
and the world economy runs
on them using middlemen
1033
00:43:58,739 --> 00:44:00,881
who all charge high fees.
1034
00:44:00,905 --> 00:44:04,165
Proponents say that if
we used smart contracts,
1035
00:44:04,189 --> 00:44:06,010
we could tell the bankers,
1036
00:44:06,034 --> 00:44:09,577
lawyers, escrow agents, and
Wall Street finance guys
1037
00:44:09,601 --> 00:44:10,875
to take a hike.
1038
00:44:10,899 --> 00:44:13,862
- A soda machine is a smart
contract machine, right.
1039
00:44:13,886 --> 00:44:16,022
You stick in a dollar, you get a soda.
1040
00:44:16,046 --> 00:44:17,828
It's very, very simple.
1041
00:44:17,852 --> 00:44:19,472
The soda machine does take statistics,
1042
00:44:19,496 --> 00:44:22,104
and it has to make sure
that you can't scam it
1043
00:44:22,128 --> 00:44:23,623
by stealing the soda,
1044
00:44:23,647 --> 00:44:25,970
but Ethereum and the people
1045
00:44:25,994 --> 00:44:27,463
that are trying to decentralise this
1046
00:44:27,487 --> 00:44:30,566
will tell you that that transaction,
1047
00:44:30,590 --> 00:44:33,027
that smart contract between
you and the soda machine
1048
00:44:33,051 --> 00:44:36,948
is so critical that it needs
to be globally processed
1049
00:44:36,972 --> 00:44:41,147
and saved at 100,000
decentralised computers
1050
00:44:41,171 --> 00:44:43,433
because it is so sensitive.
1051
00:44:43,457 --> 00:44:46,986
And in reality, 99% of
all of these contracts,
1052
00:44:47,010 --> 00:44:50,795
they don't need this kind
of censorship resistance.
1053
00:44:50,819 --> 00:44:51,804
- [Torsten] You know, in two years time
1054
00:44:51,828 --> 00:44:53,063
when people will see this film,
1055
00:44:53,087 --> 00:44:53,896
or in four years time,
1056
00:44:53,920 --> 00:44:56,710
I think will be an
interesting historic moment.
1057
00:44:56,734 --> 00:44:58,975
- What we're doing is we're saying,
1058
00:44:58,999 --> 00:44:59,808
we have this Ethereum network,
1059
00:44:59,832 --> 00:45:02,290
inside the Ethereum network
there's this asset called Ether,
1060
00:45:02,314 --> 00:45:04,632
and we're actually going
to be selling Ether.
1061
00:45:04,656 --> 00:45:05,512
We're going to be selling Ether
1062
00:45:05,536 --> 00:45:07,529
at a rate of 1,000 to 2,000
Ether for one Bitcoin.
1063
00:45:07,553 --> 00:45:10,106
And that's how we're
gonna raise all the money.
1064
00:45:10,130 --> 00:45:11,475
- [Torsten] It worked.
1065
00:45:11,499 --> 00:45:13,084
Vitalik figured out a way
to fun the Ethereum project.
1066
00:45:13,108 --> 00:45:15,784
And it made his investors very rich.
1067
00:45:15,808 --> 00:45:18,807
(soft music)
1068
00:45:18,831 --> 00:45:20,587
This new model for
fundraising soon had a name,
1069
00:45:20,611 --> 00:45:24,821
and initial coin offering, or ICO.
1070
00:45:24,845 --> 00:45:27,878
- IPOs and ICOs sound similar,
1071
00:45:27,902 --> 00:45:30,056
but they have, they're nothing similar.
1072
00:45:30,080 --> 00:45:31,285
The only thing similar about them
1073
00:45:31,309 --> 00:45:33,500
is they both help you raise money.
1074
00:45:34,741 --> 00:45:37,649
IPOs, you don't do until
you have a company,
1075
00:45:37,673 --> 00:45:38,777
until you have revenue,
1076
00:45:38,801 --> 00:45:40,036
until you have users,
1077
00:45:40,060 --> 00:45:42,883
until you can actually prove
to the public investors
1078
00:45:42,907 --> 00:45:44,142
that this is a valuable company
1079
00:45:44,166 --> 00:45:45,231
that's worth investing in,
1080
00:45:45,255 --> 00:45:47,079
and it's worth buying their stock.
1081
00:45:47,103 --> 00:45:50,167
ICOs, it's pre-product.
1082
00:45:50,191 --> 00:45:52,684
You have maybe a couple
of people on the team.
1083
00:45:52,708 --> 00:45:54,192
It's just a white paper.
1084
00:45:54,216 --> 00:45:56,083
And so people are just buying into,
1085
00:45:56,107 --> 00:45:59,412
trust into faith that this
is something that will exist.
1086
00:45:59,436 --> 00:46:02,026
- [Torsten] And this is the
guy who opened the floodgates.
1087
00:46:02,050 --> 00:46:05,161
He crated a standard called ERC-20,
1088
00:46:05,185 --> 00:46:08,705
enabling you or me or
anyone to create an ICO.
1089
00:46:10,270 --> 00:46:11,505
- So on the one hand,
1090
00:46:11,529 --> 00:46:12,445
you have these smart contracts,
1091
00:46:12,469 --> 00:46:14,176
these little programmes
that can talk to each other,
1092
00:46:14,200 --> 00:46:17,489
but you have to define how
do they talk to each other.
1093
00:46:17,513 --> 00:46:19,751
And because everybody now
agrees to that same standard.
1094
00:46:19,775 --> 00:46:22,614
- [Torsten] Smart contracts can interact
1095
00:46:22,638 --> 00:46:24,107
within the entire Ethereum network
1096
00:46:24,131 --> 00:46:27,967
and the ERC-20 standard
allow the creation of tokens.
1097
00:46:27,991 --> 00:46:31,595
- The goal here is like, ultimately,
1098
00:46:31,619 --> 00:46:32,634
I'd like to see eight year olds
1099
00:46:32,658 --> 00:46:34,048
building their own financial systems.
1100
00:46:34,072 --> 00:46:37,276
- [Torsten] Yeah, but what if
some of these eight year olds
1101
00:46:37,300 --> 00:46:39,081
are also scammers?
1102
00:46:39,105 --> 00:46:42,396
- So let's say I'm trying to do a ICO,
1103
00:46:42,420 --> 00:46:44,843
and I create a smart contract
1104
00:46:44,867 --> 00:46:47,525
where I create a million coins,
1105
00:46:47,549 --> 00:46:51,316
and one of the transactions is that if you
1106
00:46:51,340 --> 00:46:55,764
send me $100, I will send
you that many worth of coins.
1107
00:46:55,788 --> 00:46:58,433
- [Torsten] It was a mad gold rush.
1108
00:46:58,457 --> 00:47:00,416
- People realised wow, if,
1109
00:47:00,440 --> 00:47:03,053
if I can just pull up,
pull together a project
1110
00:47:03,077 --> 00:47:04,305
and a white paper, I can raise money.
1111
00:47:04,329 --> 00:47:06,197
- Like a lot of money.
1112
00:47:06,221 --> 00:47:08,636
(soft music)
1113
00:47:23,736 --> 00:47:25,956
Some people hawking new
coins didn't actually exist.
1114
00:47:25,980 --> 00:47:29,007
This handsome chap is the graphic designer
1115
00:47:29,031 --> 00:47:30,715
of a Bulgarian ICO.
1116
00:47:30,739 --> 00:47:33,530
Actually, they just posted
a photo of Ryan Gosling.
1117
00:47:33,554 --> 00:47:36,679
Another project raised millions in Ether,
1118
00:47:36,703 --> 00:47:38,158
and then vanished,
1119
00:47:38,182 --> 00:47:40,935
leaving investors with this website.
1120
00:47:40,959 --> 00:47:43,352
Look closer, that's nice.
1121
00:47:43,376 --> 00:47:46,110
Most of the scam coins were built
1122
00:47:46,134 --> 00:47:47,505
on Vitalik's smart
contract platform Ethereum
1123
00:47:47,529 --> 00:47:50,604
using Fabian's token standard.
1124
00:47:50,628 --> 00:47:54,617
This innovation has enabled a
lot of criminals and scammers.
1125
00:47:54,641 --> 00:47:59,636
- So I would say the amount of scams
1126
00:47:59,920 --> 00:48:02,973
in that system are rather low.
1127
00:48:02,997 --> 00:48:04,991
It sometimes looks bigger than it is.
1128
00:48:05,015 --> 00:48:08,058
I would assume that the actual scams,
1129
00:48:08,082 --> 00:48:11,555
purposeful scams, in that system
1130
00:48:11,579 --> 00:48:13,433
maybe were like two or three percent.
1131
00:48:13,457 --> 00:48:17,744
I would say actually
most ICOs were not scams.
1132
00:48:17,768 --> 00:48:21,125
- I would say about two to
five percent of the thousands of ICOs
1133
00:48:21,149 --> 00:48:22,856
that are happening are actually legit.
1134
00:48:22,880 --> 00:48:24,673
- [Torsten] And the rest is?
1135
00:48:24,697 --> 00:48:27,170
- Pretty scammy, or just not gonna work.
1136
00:48:27,194 --> 00:48:31,969
- Can you define for
me what a shitcoin is?
1137
00:48:31,993 --> 00:48:33,465
(laughs)
1138
00:48:33,489 --> 00:48:37,552
- I think it's just a
derogatory term people use
1139
00:48:37,576 --> 00:48:40,509
on coins that they don't like
1140
00:48:40,533 --> 00:48:42,421
for Bitcoin maximalists,
1141
00:48:42,445 --> 00:48:44,871
people who only care about Bitcoin,
1142
00:48:44,895 --> 00:48:46,454
everything else is a shitcoin.
1143
00:48:46,478 --> 00:48:48,158
In my point of view,
1144
00:48:48,182 --> 00:48:52,873
I think a coin that is kind
of a scam is a shitcoin.
1145
00:48:52,897 --> 00:48:56,211
So people create coins
just to get rich from it,
1146
00:48:56,235 --> 00:48:58,997
print a lot of tokens out of thin air,
1147
00:48:59,021 --> 00:49:00,096
trying to pump the price up
1148
00:49:00,120 --> 00:49:02,034
and make a lot of money from it.
1149
00:49:02,058 --> 00:49:03,625
And it's not really
providing a lot of value
1150
00:49:03,649 --> 00:49:06,450
to the world.
1151
00:49:06,474 --> 00:49:08,348
- [Torsten] No value for the world,
1152
00:49:08,372 --> 00:49:10,412
but they did add value for their creators.
1153
00:49:10,436 --> 00:49:12,937
If you can print billions
of tokens out of thin air
1154
00:49:12,961 --> 00:49:15,712
like a central bank,
well, that's why this guy
1155
00:49:15,736 --> 00:49:18,702
was one of the wealthiest men
on earth for a brief moment.
1156
00:49:18,726 --> 00:49:21,435
Here's how that happened.
1157
00:49:21,459 --> 00:49:23,782
- [Narrator] There will only
every be 21 million Bitcoins,
1158
00:49:23,806 --> 00:49:26,320
and it's inventor had to earn them
1159
00:49:26,344 --> 00:49:27,958
by mining with his computers
1160
00:49:27,982 --> 00:49:29,536
just like everyone else.
1161
00:49:29,560 --> 00:49:30,925
There are more Litecoins,
1162
00:49:30,949 --> 00:49:33,195
and even more Ether in circulation.
1163
00:49:33,219 --> 00:49:36,092
Vitalik kept some portion to
fund the development team.
1164
00:49:36,116 --> 00:49:38,312
And then there's Ripple.
1165
00:49:38,336 --> 00:49:41,494
They created 100 billion XRP
1166
00:49:41,518 --> 00:49:44,191
but kept 80% for themselves
and their clients.
1167
00:49:44,215 --> 00:49:47,534
And the other 20%, they gave
as a bonus to the founders.
1168
00:49:47,558 --> 00:49:50,560
That's how you get to be one
of the richest men on earth.
1169
00:49:50,584 --> 00:49:53,945
- [Torsten] Okay, maybe I
was a bit too harsh on ICOs
1170
00:49:53,969 --> 00:49:57,306
democratising start up
finance can be a good thing.
1171
00:49:57,330 --> 00:50:00,429
There were many legit
companies raising capital too.
1172
00:50:00,453 --> 00:50:02,883
Over the years, I've met many founders
1173
00:50:02,907 --> 00:50:05,281
who have real offices with real people
1174
00:50:05,305 --> 00:50:07,076
trying to solve real problems.
1175
00:50:08,574 --> 00:50:10,079
But to Bitcoin maximalists,
1176
00:50:10,103 --> 00:50:13,352
Bitcoin is the be all end
all of cryptocurrency.
1177
00:50:13,376 --> 00:50:16,610
Other blockchains, ICOs, smart contracts,
1178
00:50:16,634 --> 00:50:19,014
that's all a waste of time.
1179
00:50:22,832 --> 00:50:26,380
- There is no such thing as blockchains,
1180
00:50:26,404 --> 00:50:29,257
that revolutionise the healthcare industry,
1181
00:50:29,281 --> 00:50:31,106
and the automotive production...
1182
00:50:31,130 --> 00:50:33,152
- Of course there is.
1183
00:50:33,176 --> 00:50:34,103
- Huh?
1184
00:50:34,127 --> 00:50:34,936
- Of course there is.
1185
00:50:34,960 --> 00:50:36,155
What you're saying is a
maximalist point of view.
1186
00:50:36,179 --> 00:50:39,285
You are speaking about
from a perspective of,
1187
00:50:39,309 --> 00:50:41,532
of a cult or a sect.
1188
00:50:41,556 --> 00:50:46,439
My problem is that you
are hijacking a movement
1189
00:50:46,463 --> 00:50:48,880
of a technology that is far greater
1190
00:50:48,904 --> 00:50:51,055
and has far more potential
1191
00:50:51,079 --> 00:50:53,712
than just these individuals.
1192
00:50:53,736 --> 00:50:55,061
- There's all of these different things
1193
00:50:55,085 --> 00:50:56,347
that you could use blockchain for, right.
1194
00:50:56,371 --> 00:50:57,838
And so people have,
1195
00:50:57,862 --> 00:50:59,713
they're almost like different ecosystems.
1196
00:50:59,737 --> 00:51:02,937
And then what you see is almost
like an evolutionary process
1197
00:51:02,961 --> 00:51:05,207
right, where the blockchains fork
1198
00:51:05,231 --> 00:51:06,999
and they have the same ancestries,
1199
00:51:07,023 --> 00:51:08,474
but they adapt to different environments
1200
00:51:08,498 --> 00:51:12,324
and we see this like every
increasing level of diversity
1201
00:51:12,348 --> 00:51:13,668
in number of blockchains.
1202
00:51:13,692 --> 00:51:16,010
So I think the idea that
here's like one blockchain,
1203
00:51:16,034 --> 00:51:16,843
gonna be one blockchain
1204
00:51:16,867 --> 00:51:18,656
and it's gonna be fit for everything,
1205
00:51:18,680 --> 00:51:23,675
it's almost like disregarding
the nature of evolution.
1206
00:51:24,029 --> 00:51:27,448
- Meanwhile, the big corporations
1207
00:51:27,472 --> 00:51:28,846
have been studying cryptocurrency.
1208
00:51:28,870 --> 00:51:31,754
And they think that
Bitcoin's underlying database
1209
00:51:31,778 --> 00:51:33,073
is where the magic is.
1210
00:51:33,097 --> 00:51:34,508
The motto in the boardrooms,
1211
00:51:36,953 --> 00:51:38,761
Blockchain, not Bitcoin!
1212
00:51:42,911 --> 00:51:44,181
Back in Germany, my friend Oliver
1213
00:51:44,205 --> 00:51:46,559
keeps tabs on the men in suits.
1214
00:51:46,583 --> 00:51:48,085
He used to be one of them.
1215
00:51:52,827 --> 00:51:54,787
- [Torsten] BMW is looking
at using the blockchain
1216
00:52:04,664 --> 00:52:06,889
for their future fleet of electric cars
1217
00:52:06,913 --> 00:52:08,816
to interact with public transport.
1218
00:52:08,840 --> 00:52:11,754
Lufthansa wants to see if the blockchain
1219
00:52:11,778 --> 00:52:13,362
can better track parts and maintenance.
1220
00:52:13,386 --> 00:52:16,449
And Deutsche Telekom is
using smart contracts
1221
00:52:16,473 --> 00:52:17,838
to negotiate tariffs
1222
00:52:17,862 --> 00:52:19,964
for roaming costs with other telecoms.
1223
00:52:19,988 --> 00:52:22,402
(soft music)
1224
00:52:26,603 --> 00:52:28,526
if we can store trade certificates
and shipping documents
1225
00:52:28,550 --> 00:52:30,246
on the blockchain,
1226
00:52:30,270 --> 00:52:33,153
you can check to see where
those organic avocados
1227
00:52:33,177 --> 00:52:34,963
really came from, who grew them,
1228
00:52:34,987 --> 00:52:36,629
who packed them,
1229
00:52:36,653 --> 00:52:37,702
and who shipped them.
1230
00:52:38,701 --> 00:52:40,335
Besides, the Internet of things
1231
00:52:40,359 --> 00:52:42,546
needs a ledger of all those things.
1232
00:52:42,570 --> 00:52:44,931
Well, that's the idea
1233
00:52:44,955 --> 00:52:47,059
behind private centralised blockchains,
1234
00:52:47,083 --> 00:52:49,586
maintained and controlled by corporations.
1235
00:52:49,610 --> 00:52:51,804
A famous example, the
Walmart supply chain trial,
1236
00:52:51,828 --> 00:52:53,770
which they're working with IBM.
1237
00:52:53,794 --> 00:52:56,090
That's a completely centralised.
1238
00:52:56,114 --> 00:52:59,526
They use a blockchain
derived product Hyperledger,
1239
00:52:59,550 --> 00:53:01,467
but all the nodes reside on the IBM cloud,
1240
00:53:01,491 --> 00:53:04,022
and they're all administered by Walmart,
1241
00:53:04,046 --> 00:53:06,258
and the supplier is used
because Walmart told them to.
1242
00:53:06,282 --> 00:53:08,476
It's a centralised database system!
1243
00:53:08,500 --> 00:53:10,253
But they marketed it Blockchain.
1244
00:53:10,277 --> 00:53:11,782
So that means one,
1245
00:53:11,806 --> 00:53:14,035
they wouldn't have got a
New York Times headline
1246
00:53:14,059 --> 00:53:15,777
if they just said database.
1247
00:53:15,801 --> 00:53:17,458
- [Torsten] You might wonder
1248
00:53:17,482 --> 00:53:18,807
what's the point of a blockchain
1249
00:53:18,831 --> 00:53:20,174
if it's controlled by a company?
1250
00:53:20,198 --> 00:53:22,314
Well, I compare it to the open Internet
1251
00:53:22,338 --> 00:53:24,211
versus company owned Intranets.
1252
00:53:24,235 --> 00:53:26,263
They both exist.
1253
00:53:26,287 --> 00:53:29,653
Meanwhile, Facebook
announced a cryptocurrency
1254
00:53:29,677 --> 00:53:31,553
for their two billion users.
1255
00:53:31,577 --> 00:53:34,062
Such a system might be more efficient
1256
00:53:34,086 --> 00:53:35,480
than a public blockchain,
1257
00:53:35,504 --> 00:53:37,019
but there's a downside.
1258
00:53:37,043 --> 00:53:37,977
Some Governments banned it within weeks.
1259
00:53:38,001 --> 00:53:42,034
(group chatter)
1260
00:53:42,058 --> 00:53:43,682
- Right now, the ways, pieces of paper,
1261
00:53:43,706 --> 00:53:45,920
that's being shifted around,
that doesn't make any sense.
1262
00:53:45,944 --> 00:53:47,608
That infrastructure needs to be replaced.
1263
00:53:47,632 --> 00:53:49,107
- [Torsten] Why occupy Wall Street
1264
00:53:49,131 --> 00:53:51,366
when we can build a new one
on the blockchain instead?
1265
00:53:51,390 --> 00:53:53,584
In the future of decentralised finance,
1266
00:53:53,608 --> 00:53:56,839
stock certificate, corporate bonds,
1267
00:53:56,863 --> 00:53:59,296
insurance policies, property deeds,
1268
00:53:59,320 --> 00:54:01,825
mortgages, all can be
turned into crypto tokens
1269
00:54:01,849 --> 00:54:03,795
and made tradable 24/7.
1270
00:54:03,819 --> 00:54:06,733
(electronic music)
1271
00:54:14,728 --> 00:54:17,808
(electronic buzzing)
1272
00:54:25,784 --> 00:54:28,247
- What's much more exciting
than tokenized securities
1273
00:54:28,271 --> 00:54:30,515
of traditional businesses
where it's just equity
1274
00:54:30,539 --> 00:54:31,455
that you pass around
1275
00:54:31,479 --> 00:54:33,982
is totally novel digital securities
1276
00:54:34,006 --> 00:54:36,120
that you couldn't do before, right.
1277
00:54:36,144 --> 00:54:38,294
Novel use cases where you
could kick back cash flow
1278
00:54:38,318 --> 00:54:39,825
on a continual basis.
1279
00:54:39,849 --> 00:54:41,804
I think some examples of this
1280
00:54:41,828 --> 00:54:42,952
that we're seeing now are MakerDao,
1281
00:54:42,976 --> 00:54:45,992
Binance which has Binance Coin,
1282
00:54:46,016 --> 00:54:49,137
that's actually much
bigger of an opportunity
1283
00:54:49,161 --> 00:54:50,950
because it represents
something totally new.
1284
00:54:50,974 --> 00:54:53,388
(soft music)
1285
00:54:56,783 --> 00:54:58,086
- My name is Dr. Jemma Green,
1286
00:54:58,110 --> 00:55:01,621
and I'm a co-founder and the
chairman of PowerLedger.
1287
00:55:01,645 --> 00:55:03,792
And we use the blockchain
1288
00:55:03,816 --> 00:55:05,391
to enable electricity trading,
1289
00:55:05,415 --> 00:55:09,386
energy asset financing,
and carbon markets.
1290
00:55:09,410 --> 00:55:11,224
- [Torsten] This award
winning Australian company
1291
00:55:11,248 --> 00:55:13,317
wants to take us to a
carbon-free economy faster.
1292
00:55:13,341 --> 00:55:15,664
Jemma has identified a problem.
1293
00:55:15,688 --> 00:55:19,186
- Apartment buildings, often
the buildings are tenanted.
1294
00:55:19,210 --> 00:55:21,180
An it means that if there is solar panels,
1295
00:55:21,204 --> 00:55:24,271
the owner of the apartment
isn't really incentivize
1296
00:55:24,295 --> 00:55:25,880
to put in solar panels or batteries
1297
00:55:25,904 --> 00:55:27,368
because the tenant benefits.
1298
00:55:27,392 --> 00:55:28,927
But using our platform,
1299
00:55:28,951 --> 00:55:30,745
the tenant will pay their electricity bill
1300
00:55:30,769 --> 00:55:32,323
to the body corporate.
1301
00:55:32,347 --> 00:55:33,323
- [Torsten] Using PowerLedger,
1302
00:55:33,347 --> 00:55:35,627
the tenant pays the owner,
not the power company
1303
00:55:35,651 --> 00:55:37,618
for their electricity.
1304
00:55:37,642 --> 00:55:38,909
And if the tenant isn't at home,
1305
00:55:38,933 --> 00:55:40,994
the unused energy will
be sold to a neighbour,
1306
00:55:41,018 --> 00:55:42,927
lowering their power bill
1307
00:55:42,951 --> 00:55:45,600
and making a profit for the owner.
1308
00:55:45,624 --> 00:55:47,563
- So it actually crates the mechanism
1309
00:55:47,587 --> 00:55:50,321
to justify investing the
capital in the first place.
1310
00:55:50,345 --> 00:55:52,517
- This system could speed up investment
1311
00:55:52,541 --> 00:55:54,117
in sustainable energy projects
1312
00:55:54,141 --> 00:55:56,921
by making it easy to own a
piece of a solar or wind farm.
1313
00:55:56,945 --> 00:55:59,359
(soft music)
1314
00:56:01,918 --> 00:56:03,382
Why do I need a blockchain for this?
1315
00:56:03,406 --> 00:56:07,098
Can't I invest in a solar farm
without this new fancy tech?
1316
00:56:07,122 --> 00:56:09,065
- The blockchain acts as
a kind of asset register
1317
00:56:09,089 --> 00:56:11,065
and income register,
1318
00:56:11,089 --> 00:56:12,570
and in tokenizing the asset,
1319
00:56:12,594 --> 00:56:15,081
it becomes tradable on an exchange.
1320
00:56:15,105 --> 00:56:17,608
You might own two or three solar panels
1321
00:56:17,632 --> 00:56:20,371
of a thousand, you know, in a solar farm,
1322
00:56:20,395 --> 00:56:23,198
and you would receive the
income associated with that
1323
00:56:23,222 --> 00:56:24,993
amount of ownership.
1324
00:56:25,017 --> 00:56:25,981
(soft music)
1325
00:56:26,005 --> 00:56:28,527
- Now bankers don't very
much like being cut out
1326
00:56:28,551 --> 00:56:29,796
of the cashflow loop,
1327
00:56:29,820 --> 00:56:31,094
so they took another look
1328
00:56:31,118 --> 00:56:33,457
at Mr. Nakamoto's curious
little white paper.
1329
00:56:33,481 --> 00:56:35,970
And they've recently been spending
1330
00:56:35,994 --> 00:56:38,874
a billion dollars a year
in blockchain research.
1331
00:56:39,931 --> 00:56:41,313
Isn't it ironic,
1332
00:56:41,337 --> 00:56:43,312
Satoshi's anti-bank invention
1333
00:56:43,336 --> 00:56:44,671
is now being used by the banks
1334
00:56:44,695 --> 00:56:45,870
to move money faster.
1335
00:56:45,894 --> 00:56:47,597
And by big business to
track supply chains.
1336
00:56:47,621 --> 00:56:50,535
(electronic music)
1337
00:57:04,552 --> 00:57:05,483
Cryptocurrencies, digital tokens,
1338
00:57:05,507 --> 00:57:07,908
public blockchains, private blockchains,
1339
00:57:07,932 --> 00:57:09,217
where is the killer app?
1340
00:57:09,241 --> 00:57:11,702
Well, adoption of new technology
1341
00:57:11,726 --> 00:57:14,062
often follows old trends.
1342
00:57:14,086 --> 00:57:16,219
- My name is Marc Ventresca.
1343
00:57:16,243 --> 00:57:18,397
I'm here at Oxford, the
University of Oxford
1344
00:57:18,421 --> 00:57:19,616
on the faculty.
1345
00:57:19,640 --> 00:57:21,474
I'm an economics sociologist by training,
1346
00:57:21,498 --> 00:57:23,665
interested in how large-scale
infrastructure changes.
1347
00:57:23,689 --> 00:57:26,231
- So great so see you after nine years.
1348
00:57:26,255 --> 00:57:27,719
- [Marc] I know.
1349
00:57:27,743 --> 00:57:29,766
- [Torsten] Marc teaches a class
1350
00:57:29,790 --> 00:57:31,153
on innovation and system building.
1351
00:57:31,177 --> 00:57:33,164
He tells me what must align
1352
00:57:33,188 --> 00:57:35,194
for a new technology to become fruitful.
1353
00:57:35,218 --> 00:57:39,327
- All technologies start
out as interesting ideas.
1354
00:57:39,351 --> 00:57:41,845
Some of them begin to
develop into innovations
1355
00:57:41,869 --> 00:57:44,063
and we know that arc from
invention to innovation
1356
00:57:44,087 --> 00:57:46,148
takes a lot of time, takes a lot of work.
1357
00:57:46,172 --> 00:57:48,297
Some of those innovations
1358
00:57:48,321 --> 00:57:49,801
eventually become commercially viable.
1359
00:57:49,825 --> 00:57:53,275
- [Torsten] Case in point, the automobile.
1360
00:57:53,299 --> 00:57:54,461
In the early days,
1361
00:57:54,485 --> 00:57:56,037
cars looked like a pretty lousy idea,
1362
00:57:56,061 --> 00:57:58,434
and poorly executed.
1363
00:58:00,386 --> 00:58:02,070
- Early on, there were electric cars,
1364
00:58:02,094 --> 00:58:03,598
there were battery operated cars.
1365
00:58:03,622 --> 00:58:06,564
The combustion engine was
a relative late comer.
1366
00:58:06,588 --> 00:58:09,626
- [Torsten] It took Henry
Ford's mass production
1367
00:58:09,650 --> 00:58:11,264
to create the standards,
1368
00:58:11,288 --> 00:58:12,434
what a car looked like,
1369
00:58:12,458 --> 00:58:14,091
what parts it needed,
1370
00:58:14,115 --> 00:58:15,178
how it operated.
1371
00:58:15,202 --> 00:58:17,090
That's when complementary assets
1372
00:58:17,114 --> 00:58:19,379
and infrastructure emerged.
1373
00:58:19,403 --> 00:58:22,292
- So you have a paved
roads and petrol stations.
1374
00:58:22,316 --> 00:58:26,036
Then you have secondary things
like motels and restaurants,
1375
00:58:26,060 --> 00:58:28,265
and places to eat while you're
on the highway and buy food.
1376
00:58:28,289 --> 00:58:30,665
Then you have interesting questions
1377
00:58:30,689 --> 00:58:32,070
like what side of the
road should we drive on.
1378
00:58:32,094 --> 00:58:34,970
- [Torsten] An entire
ecosystem had been built,
1379
00:58:34,994 --> 00:58:37,755
but it wasn't a smooth
transition by any means.
1380
00:58:39,320 --> 00:58:41,694
- The imagery here is there
are maybe a couple of hundred,
1381
00:58:41,718 --> 00:58:42,733
three or four hundred companies
1382
00:58:42,757 --> 00:58:44,231
that tried to get into this space.
1383
00:58:44,255 --> 00:58:45,360
But they're not car companies.
1384
00:58:45,384 --> 00:58:46,756
They're bicycle manufacturers
1385
00:58:46,780 --> 00:58:48,192
or steam engine manufacturers.
1386
00:58:48,216 --> 00:58:50,912
At some point, in this account,
1387
00:58:50,936 --> 00:58:53,032
all that period of ferment settles
1388
00:58:53,056 --> 00:58:54,361
around a dominant design,
1389
00:58:54,385 --> 00:58:55,620
and then you have what,
1390
00:58:55,644 --> 00:58:57,617
again, what innovation
economist would call a shakeout.
1391
00:58:57,641 --> 00:59:00,433
They would say you go from
300 or 400 producers,
1392
00:59:00,457 --> 00:59:05,280
all of them vying to
shape this emerging space,
1393
00:59:05,304 --> 00:59:06,929
this emerging thing called the automobile.
1394
00:59:06,953 --> 00:59:09,128
You may then drop to
20 or 30 manufacturers.
1395
00:59:09,152 --> 00:59:11,766
And then you may drop to five or six.
1396
00:59:11,790 --> 00:59:14,071
(soft music)
1397
00:59:14,095 --> 00:59:14,904
- [Torsten] It took 50 years
1398
00:59:14,928 --> 00:59:16,709
for cars to go from curious invention
1399
00:59:16,733 --> 00:59:19,336
to finally tuned, mass market product.
1400
00:59:19,360 --> 00:59:22,050
50 years to change the
world as we knew it.
1401
00:59:24,475 --> 00:59:26,389
♪ Bitcoin is Gold theme song ♪
1402
00:59:26,413 --> 00:59:27,581
- [GPS] Your destination is on the left.
1403
00:59:27,605 --> 00:59:32,013
- [Torsten] But our story
isn't about cars or roads.
1404
00:59:32,037 --> 00:59:33,921
I want to learn about dominate designs
1405
00:59:33,945 --> 00:59:35,427
of digital technology.
1406
00:59:36,293 --> 00:59:38,248
That's why I came to the
Computer History Museum
1407
00:59:38,272 --> 00:59:40,505
in the heart of Silicon Valley.
1408
00:59:40,529 --> 00:59:43,267
- So you're looking at
the console for SAGE,
1409
00:59:43,291 --> 00:59:45,674
which was probably the
first computer network.
1410
00:59:45,674 --> 00:59:46,581
which was probably the
first computer network.
- [Torsten] The US military
and some American universities
1411
00:59:46,581 --> 00:59:46,605
- [Torsten] The US military
and some American universities
1412
00:59:46,605 --> 00:59:47,955
There were 23 centres around North America
- [Torsten] The US military
and some American universities
1413
00:59:47,955 --> 00:59:50,235
There were 23 centres around North America
1414
00:59:50,259 --> 00:59:51,929
to warn against Soviet bombers.
1415
00:59:51,953 --> 00:59:54,386
And they were waiting for World War III.
1416
00:59:57,757 --> 01:00:00,802
asked this guy to create
a new kind of network
1417
01:00:00,826 --> 01:00:03,037
to connect their separate networks.
1418
01:00:03,061 --> 01:00:05,281
- And this young girl
1419
01:00:05,305 --> 01:00:08,017
got up and she had a bunch of questions,
1420
01:00:08,041 --> 01:00:09,935
but her first one was
1421
01:00:09,959 --> 01:00:12,353
how did I manage to
convince all the governments
1422
01:00:12,377 --> 01:00:14,101
of the world to let us build the Internet.
1423
01:00:14,125 --> 01:00:16,719
And I said well, except
for the handful of us
1424
01:00:16,743 --> 01:00:18,036
that were actually
working on the Internet,
1425
01:00:18,060 --> 01:00:21,214
nobody else really thought
it was a very good idea,
1426
01:00:21,238 --> 01:00:22,731
and they didn't think it
was gonna lead anywhere.
1427
01:00:22,755 --> 01:00:25,684
And you know, we pretty
much had free running room.
1428
01:00:25,708 --> 01:00:29,306
- [Torsten] Yes, that's the
man who co-invented TCP/IP
1429
01:00:29,330 --> 01:00:30,695
about 50 years ago.
1430
01:00:30,719 --> 01:00:32,593
That's their original academic paper.
1431
01:00:32,617 --> 01:00:35,150
You can think of TCP as the
backbone of the Internet.
1432
01:00:35,174 --> 01:00:38,018
But back then, there were
many competing technologies.
1433
01:00:38,042 --> 01:00:41,397
- There was a very big
battle over the protocols.
1434
01:00:41,421 --> 01:00:43,978
TCP/IP didn't just win by default.
1435
01:00:44,002 --> 01:00:48,507
It won through attrition
by basically being better,
1436
01:00:48,531 --> 01:00:50,529
simpler, easier to deploy
1437
01:00:50,553 --> 01:00:52,151
than all of the other proposals.
1438
01:00:52,175 --> 01:00:52,983
- [Torsten] More scalable.
1439
01:00:53,007 --> 01:00:53,932
- And more scalable.
1440
01:00:53,956 --> 01:00:55,670
And it had a lot of competition
1441
01:00:55,694 --> 01:00:59,640
from phone companies that
tried to make the Internet
1442
01:00:59,664 --> 01:01:03,709
a closed, metered, controlled system.
1443
01:01:03,733 --> 01:01:06,029
They tried to do what people
1444
01:01:06,053 --> 01:01:07,660
are trying to do today with blockchains,
1445
01:01:07,684 --> 01:01:09,930
which is take the open
decentralised network
1446
01:01:09,954 --> 01:01:13,399
and turn it into this sterile,
closed corporate system
1447
01:01:13,423 --> 01:01:16,128
where they can charge by the
minute and be in control.
1448
01:01:16,152 --> 01:01:17,916
- [Torsten] The Internet's
ultimate victory
1449
01:01:17,940 --> 01:01:20,096
has a dirty little secret.
1450
01:01:20,120 --> 01:01:22,202
The men in charge of promoting it
1451
01:01:22,226 --> 01:01:24,249
were employees of the military
1452
01:01:24,273 --> 01:01:27,947
with the muscle and the cash
to beat the competition.
1453
01:01:27,971 --> 01:01:29,316
- And then there's email.
1454
01:01:29,340 --> 01:01:30,149
- Email?
1455
01:01:30,173 --> 01:01:31,544
I heard that's really neat.
1456
01:01:31,568 --> 01:01:32,444
- [Torsten] Email was perhaps
1457
01:01:32,468 --> 01:01:34,071
the Internet's first killer app.
1458
01:01:34,095 --> 01:01:34,904
Then in the early 90s,
1459
01:01:34,928 --> 01:01:36,306
Tim Berners-Lee introduced
the World Wide Web
1460
01:01:36,330 --> 01:01:39,277
as a 20 page proposal.
1461
01:01:39,301 --> 01:01:42,011
Soon, there were browsers
that made it more accessible
1462
01:01:42,035 --> 01:01:44,889
and user-friendly for the general public.
1463
01:01:44,913 --> 01:01:47,757
(electronic music)
1464
01:01:47,781 --> 01:01:49,136
- I think that the Internet
1465
01:01:49,160 --> 01:01:51,402
is going to be one of the major forces
1466
01:01:51,426 --> 01:01:54,522
for reducing the role of Government.
1467
01:01:54,546 --> 01:01:56,838
The one thing that's missing,
1468
01:01:56,862 --> 01:01:58,523
but that will soon be developed,
1469
01:01:58,547 --> 01:02:00,954
is a reliable e-cash.
1470
01:02:00,978 --> 01:02:02,792
- [Torsten] Still, few
understood the potential
1471
01:02:02,816 --> 01:02:04,201
of this new tech.
1472
01:02:04,225 --> 01:02:06,609
- From people who thought it would just be
1473
01:02:06,633 --> 01:02:08,587
the world's greatest library,
1474
01:02:08,611 --> 01:02:11,410
to some of the early cypherpunks,
1475
01:02:11,434 --> 01:02:14,285
who are the direct forefathers of crypto,
1476
01:02:14,309 --> 01:02:17,792
and certainly blockchain-type ideas,
1477
01:02:17,816 --> 01:02:19,985
who thought much as today,
1478
01:02:20,009 --> 01:02:22,165
that it would create kind of a Commons
1479
01:02:22,189 --> 01:02:24,950
that was outside of the direct control
1480
01:02:24,974 --> 01:02:26,605
and normal laws of Governments.
1481
01:02:26,629 --> 01:02:29,286
- [Torsten] That's ironic
because the US Government
1482
01:02:29,310 --> 01:02:30,612
funded it in the first place.
1483
01:02:30,636 --> 01:02:33,062
The spiritual forefathers of crypto
1484
01:02:33,086 --> 01:02:34,341
who built the early Internet
1485
01:02:34,365 --> 01:02:36,239
thought it was a new technology
1486
01:02:36,263 --> 01:02:37,641
for global freedom of expression
1487
01:02:37,665 --> 01:02:40,695
and a blank canvas upon which
they could build their dreams.
1488
01:02:40,719 --> 01:02:42,670
Boy, that sounds familiar!
1489
01:02:42,694 --> 01:02:44,561
And the media?
1490
01:02:44,585 --> 01:02:45,511
They didn't quite know
1491
01:02:45,535 --> 01:02:47,378
what to make of this new thing either.
1492
01:02:47,402 --> 01:02:49,376
But sure enough, they found juicy stories
1493
01:02:49,400 --> 01:02:50,739
about the dark side of it.
1494
01:02:50,763 --> 01:02:53,568
- Which was the Internet
is full of criminals,
1495
01:02:53,592 --> 01:02:55,840
and paedophiles, and pornographers.
1496
01:02:55,864 --> 01:02:59,414
And it's too dangerous to
use your credit card on it.
1497
01:02:59,438 --> 01:03:01,039
It's full of scams.
1498
01:03:01,063 --> 01:03:03,202
We're seeing the exact same story now.
1499
01:03:03,226 --> 01:03:05,680
- We envision technology
as if it were autonomous,
1500
01:03:05,704 --> 01:03:10,581
as if it were simply outside
of human and social experience.
1501
01:03:10,605 --> 01:03:13,152
But we see our technologies
1502
01:03:13,176 --> 01:03:15,214
that become shaped by
commercial interests,
1503
01:03:15,238 --> 01:03:17,195
by political an regulatory infrastructure,
1504
01:03:17,219 --> 01:03:21,452
by actors who are acting
for many reasons, right?
1505
01:03:21,476 --> 01:03:22,912
- Where do you want me?
1506
01:03:22,936 --> 01:03:23,988
- [Torsten] Remember Bob?
1507
01:03:24,012 --> 01:03:26,289
The big telecoms wanted his thoughts
1508
01:03:26,313 --> 01:03:28,035
on a little idea they were kicking around.
1509
01:03:28,059 --> 01:03:29,875
- They had a meeting
1510
01:03:29,899 --> 01:03:31,104
where they trying to figure out
1511
01:03:31,128 --> 01:03:32,183
how they could buy the Internet.
1512
01:03:32,207 --> 01:03:33,033
If they couldn't kill it,
1513
01:03:33,057 --> 01:03:34,241
well why not own it?
1514
01:03:34,265 --> 01:03:35,669
- I got asked that myself
1515
01:03:35,693 --> 01:03:37,809
by an executive at a
large information company.
1516
01:03:37,833 --> 01:03:42,159
It was probably in 1990 if
they could buy the Internet.
1517
01:03:42,183 --> 01:03:43,472
(scoffs)
1518
01:03:43,496 --> 01:03:44,910
- I remember asking them
1519
01:03:44,934 --> 01:03:46,023
well, why don't you buy the world economy,
1520
01:03:46,047 --> 01:03:47,413
then you can own everything.
1521
01:03:47,437 --> 01:03:49,079
Why don't you buy the weather,
1522
01:03:49,103 --> 01:03:50,818
then you can control that too.
1523
01:03:50,842 --> 01:03:53,237
- [Torsten] As the Internet's
momentum and hype grew,
1524
01:03:53,261 --> 01:03:55,335
investors threw money at entrepreneurs
1525
01:03:55,359 --> 01:03:57,041
and shady characters.
1526
01:03:57,065 --> 01:03:59,480
(soft music)
1527
01:04:05,034 --> 01:04:06,346
- The joke in the Dotcom era
1528
01:04:06,370 --> 01:04:09,615
was that you put a dotcom
behind your company
1529
01:04:09,639 --> 01:04:11,853
even if it had nothing
to do with the Internet.
1530
01:04:11,877 --> 01:04:14,611
And the venture capitalist
just throw money at you.
1531
01:04:14,635 --> 01:04:16,982
- [Torsten] It took a few
decades and hype cycles,
1532
01:04:17,006 --> 01:04:19,504
but the wild Internet was
eventually domesticated,
1533
01:04:19,528 --> 01:04:22,343
co-opted by trillion dollar companies
1534
01:04:22,367 --> 01:04:25,191
and then fundamentally
transformed how we shop,
1535
01:04:25,215 --> 01:04:27,322
work, and communicate.
1536
01:04:27,346 --> 01:04:29,760
(soft music)
1537
01:04:33,056 --> 01:04:35,487
Speaker's Corner in London's Hyde Park.
1538
01:04:36,573 --> 01:04:39,321
For 150 years, this has
been a safe place to stand
1539
01:04:39,345 --> 01:04:42,343
on a soapbox to sell your ideas,
1540
01:04:42,367 --> 01:04:43,495
preach the Gospel,
1541
01:04:43,519 --> 01:04:47,147
badmouth the king, or promote communism.
1542
01:04:47,171 --> 01:04:49,366
Today, with the World Wide Web,
1543
01:04:49,390 --> 01:04:52,283
we can stand on giant, digital soapboxes
1544
01:04:52,307 --> 01:04:54,720
using Facebook, Twitter, YouTube.
1545
01:04:54,744 --> 01:04:56,053
We can share our ideas,
1546
01:04:56,077 --> 01:04:59,628
or start a fight, with
anyone on the planet.
1547
01:05:02,107 --> 01:05:04,854
- Well, almost anyone.
1548
01:05:04,878 --> 01:05:07,548
Of 65 countries studied,
1549
01:05:07,572 --> 01:05:09,236
China has the least free Internet,
1550
01:05:09,260 --> 01:05:11,117
worse than Iran, Cuba or Syria.
1551
01:05:11,141 --> 01:05:14,576
A police force of more
than two million cybercops
1552
01:05:14,600 --> 01:05:16,758
and the world's most sophisticated
1553
01:05:16,782 --> 01:05:18,437
Artificial Intelligence system
1554
01:05:18,461 --> 01:05:20,737
keep China's web content
clean and users in check.
1555
01:05:20,761 --> 01:05:24,021
So sorry to break it to you,
1556
01:05:24,045 --> 01:05:25,929
but there's no longer a World Wide Web.
1557
01:05:25,953 --> 01:05:27,667
Welcome to the Splinternet.
1558
01:05:27,691 --> 01:05:29,192
No, it's not just in China.
1559
01:05:29,216 --> 01:05:32,152
- [Narrator] In Russia,
Wikipedia is illegal.
1560
01:05:32,176 --> 01:05:34,443
Facebook is outlawed in Bangladesh.
1561
01:05:34,467 --> 01:05:36,297
There's no WhatsApp in Dubai.
1562
01:05:36,321 --> 01:05:38,446
Twitter was banned in Turkey
1563
01:05:38,470 --> 01:05:40,709
after news about Government
corruption spread.
1564
01:05:40,733 --> 01:05:42,782
And Saudi Arabia shut down
1565
01:05:42,806 --> 01:05:44,351
the region's largest news services,
1566
01:05:44,375 --> 01:05:45,767
Al Jazeera and the BBC.
1567
01:05:45,791 --> 01:05:49,066
Meanwhile, in India, the
entire web was turned off
1568
01:05:49,090 --> 01:05:50,587
100 times last year.
1569
01:05:50,611 --> 01:05:52,742
(soft music)
1570
01:05:52,766 --> 01:05:53,575
- [Torsten] To be fair,
1571
01:05:53,599 --> 01:05:55,889
some of the censorship is to
prevent terrorist recruitment,
1572
01:05:55,913 --> 01:05:58,455
or to stop violent mobs
from hurting people.
1573
01:05:58,479 --> 01:06:01,254
But I think Government's
control over the Internet
1574
01:06:01,278 --> 01:06:03,287
has gone just a little too far...
1575
01:06:03,311 --> 01:06:06,988
- Hello, I'm from the
Australian Government.
1576
01:06:07,012 --> 01:06:08,806
Do you have something to hide?
1577
01:06:08,830 --> 01:06:10,718
We've taken the UK's fascist spying law
1578
01:06:10,742 --> 01:06:12,902
and made it even more fascist.
1579
01:06:12,926 --> 01:06:14,311
To test this shit fuckery,
1580
01:06:14,335 --> 01:06:15,144
we chose Australia,
1581
01:06:15,168 --> 01:06:17,448
the weakest of the Five Eyes alliance,
1582
01:06:17,472 --> 01:06:19,286
thanks to our lack of a Bill of Rights.
1583
01:06:19,310 --> 01:06:20,844
So international data requests
1584
01:06:20,868 --> 01:06:22,303
will now be funnelled through us,
1585
01:06:22,327 --> 01:06:23,871
compromising not just Aussies,
1586
01:06:23,895 --> 01:06:25,629
but all of you fuckers too.
1587
01:06:25,653 --> 01:06:26,962
You're welcome!
1588
01:06:26,986 --> 01:06:29,401
(soft music)
1589
01:06:31,018 --> 01:06:32,063
- Hold on,
1590
01:06:32,087 --> 01:06:33,770
Satoshi turned money into code,
1591
01:06:33,794 --> 01:06:36,419
code is just letters and numbers,
1592
01:06:36,443 --> 01:06:37,760
which is speech, right?
1593
01:06:37,784 --> 01:06:39,635
So money, now is speech,
1594
01:06:39,659 --> 01:06:42,033
which is a pretty powerful
idea if you think about it.
1595
01:06:42,057 --> 01:06:44,880
But if Bitcoin is this uncontrollable,
1596
01:06:44,904 --> 01:06:47,767
uncensorable technology.
Can the blockchain
1597
01:06:47,791 --> 01:06:49,490
also enable global free speech?
1598
01:06:49,514 --> 01:06:51,034
(soft music)
1599
01:06:51,058 --> 01:06:52,694
- [Narrator] In some
places, it already does.
1600
01:06:52,718 --> 01:06:55,877
One Chinese student tried
to report a sexual assault,
1601
01:06:55,901 --> 01:06:57,927
and was silenced by her college.
1602
01:06:57,951 --> 01:06:59,909
But she knew that she can attach a message
1603
01:06:59,933 --> 01:07:01,995
into the metadata of an
Ethereum transaction.
1604
01:07:02,019 --> 01:07:04,230
So she spent 15 cents
1605
01:07:04,254 --> 01:07:06,624
and now her letter outlining her story
1606
01:07:06,648 --> 01:07:08,136
and the threats she received
1607
01:07:08,160 --> 01:07:10,123
is on the public Ethereum blockchain
1608
01:07:10,147 --> 01:07:12,642
where it will remain unchangeable forever.
1609
01:07:12,666 --> 01:07:15,081
(soft music)
1610
01:07:20,379 --> 01:07:21,663
- [Torsten] The early cryptopioneers
1611
01:07:21,687 --> 01:07:23,212
wanted to democratised money.
1612
01:07:23,236 --> 01:07:24,592
Finance 2.0, if you will.
1613
01:07:24,616 --> 01:07:27,328
But now, the believers in the blockchains
1614
01:07:27,352 --> 01:07:29,332
have their eyes on a bigger prize:
1615
01:07:29,356 --> 01:07:31,708
They want to decentralise everything.
1616
01:07:31,732 --> 01:07:33,610
Web 3.0.
1617
01:07:33,634 --> 01:07:36,049
Facebook without the propaganda.
1618
01:07:36,073 --> 01:07:37,918
Twitter without the terms of service.
1619
01:07:37,942 --> 01:07:39,640
Reddit without the censorship.
1620
01:07:39,664 --> 01:07:42,055
Online identity without the hacks.
1621
01:07:42,079 --> 01:07:44,817
Internet browsing without
tracking software.
1622
01:07:44,841 --> 01:07:47,514
Websites without the advertising.
1623
01:07:50,379 --> 01:07:53,105
- We pay with either attention or privacy.
1624
01:07:53,129 --> 01:07:56,777
So we either have
advertising thrown at us,
1625
01:07:56,801 --> 01:07:58,207
our attention is monetized,
1626
01:07:58,231 --> 01:08:01,732
or we pay with micro
violations of our privacy.
1627
01:08:01,756 --> 01:08:03,791
- [Torsten] And that is
why the internet today
1628
01:08:03,815 --> 01:08:05,714
is the ultimate surveillance economy.
1629
01:08:05,738 --> 01:08:08,075
One privacy tool is the Brave browser.
1630
01:08:08,099 --> 01:08:10,384
It doesn't store data
1631
01:08:10,408 --> 01:08:12,622
and pays users and content publishers
1632
01:08:12,646 --> 01:08:14,666
in their basic attention tokens.
1633
01:08:14,690 --> 01:08:17,603
(electronic music)
1634
01:08:19,578 --> 01:08:22,013
- What most people in the crypto space
1635
01:08:22,037 --> 01:08:24,245
are probably most excited about
1636
01:08:24,269 --> 01:08:27,292
is this notion that we can create
1637
01:08:27,317 --> 01:08:29,961
these kinds of user-owned
decentralised networks.
1638
01:08:29,986 --> 01:08:33,361
You can, for instance, offer file storage
1639
01:08:33,385 --> 01:08:34,701
in the way that an Amazon does,
1640
01:08:34,725 --> 01:08:37,957
or that you could offer search,
1641
01:08:37,981 --> 01:08:38,996
you know, the way Google does,
1642
01:08:39,020 --> 01:08:40,774
but do it in a peer-to-peer fashion
1643
01:08:40,799 --> 01:08:45,769
without this behemoth at
the centre extracting rents.
1644
01:08:45,792 --> 01:08:47,407
And do it in a way where all the people
1645
01:08:47,431 --> 01:08:48,583
that are users of it can benefit.
1646
01:08:48,607 --> 01:08:51,804
- Blockstack is the next
evolution in computing.
1647
01:08:51,827 --> 01:08:55,024
We've seen three main
eras of computing before.
1648
01:08:55,049 --> 01:08:58,520
We had mainframes that
were these large computers
1649
01:08:59,460 --> 01:09:00,270
that everyone depended on.
1650
01:09:00,294 --> 01:09:03,147
Then we got desktops where
users were in control,
1651
01:09:03,171 --> 01:09:05,290
and they owned their own computers,
1652
01:09:05,314 --> 01:09:07,077
and their data and information.
1653
01:09:07,102 --> 01:09:09,126
And then we saw cloud computing
1654
01:09:09,149 --> 01:09:11,456
where we're dependent
on these large companies
1655
01:09:11,479 --> 01:09:12,818
running services for us.
1656
01:09:12,843 --> 01:09:14,613
And we're about to embark
1657
01:09:14,638 --> 01:09:16,844
on this major shift in computing
1658
01:09:16,869 --> 01:09:18,946
called decentralised computing
1659
01:09:18,969 --> 01:09:21,754
where users are getting back in control.
1660
01:09:21,778 --> 01:09:24,193
(soft music)
1661
01:09:25,103 --> 01:09:28,826
- And they really could
some day compete with,
1662
01:09:28,850 --> 01:09:32,112
if not take down some
of the big tech giants,
1663
01:09:32,137 --> 01:09:33,892
like the Facebooks and the
Googles and the Amazons
1664
01:09:33,916 --> 01:09:35,256
that we know.
1665
01:09:35,281 --> 01:09:36,475
(electronic music)
1666
01:09:36,499 --> 01:09:37,627
- [Torsten] That's a tall, tall order.
1667
01:09:37,651 --> 01:09:38,916
- It is, it is, but I
mean who would've thought
1668
01:09:38,941 --> 01:09:41,503
at the beginning of the Internet
1669
01:09:41,527 --> 01:09:43,351
that Wikipedia would beat out Encarta.
1670
01:09:43,375 --> 01:09:45,323
- [Torsten] These Web3
promises sound good,
1671
01:09:45,346 --> 01:09:48,386
but my professional
network is on LinkedIn.
1672
01:09:48,410 --> 01:09:50,501
My personal photos are on Instagram.
1673
01:09:50,524 --> 01:09:52,272
If I deleted my accounts,
1674
01:09:52,296 --> 01:09:53,640
I'd lose everything!
1675
01:09:53,665 --> 01:09:55,849
These services aren't just walled gardens,
1676
01:09:55,873 --> 01:09:57,627
they are digital prisons.
1677
01:09:57,651 --> 01:09:59,735
- Data is locked up in several companies.
1678
01:09:59,759 --> 01:10:02,452
And we don't own it.
1679
01:10:02,476 --> 01:10:03,671
The companies own it.
1680
01:10:03,695 --> 01:10:05,250
But they use the data
1681
01:10:05,273 --> 01:10:07,427
to mine it, to advertise to us,
1682
01:10:07,451 --> 01:10:08,259
to sell us things,
1683
01:10:08,282 --> 01:10:09,282
to manipulate us,
1684
01:10:10,285 --> 01:10:11,513
to change our behaviour,
1685
01:10:11,537 --> 01:10:13,291
and Ocean Protocol is the answer
1686
01:10:13,315 --> 01:10:14,750
to freeing up the data
1687
01:10:14,773 --> 01:10:16,755
and giving the power back to individuals.
1688
01:10:16,780 --> 01:10:18,548
- [Torsten] So how do you plan to do that?
1689
01:10:18,572 --> 01:10:21,593
- It's essentially an operating system
1690
01:10:21,617 --> 01:10:22,902
on top of Ethereum
1691
01:10:22,925 --> 01:10:26,478
that allows for people to share data,
1692
01:10:26,502 --> 01:10:29,680
storage, algorithms,
1693
01:10:29,704 --> 01:10:33,692
and computation in a way
that preserves privacy.
1694
01:10:33,716 --> 01:10:35,689
- [Torsten] It's too early to tell
1695
01:10:35,713 --> 01:10:37,246
whether projects like these can succeed.
1696
01:10:37,270 --> 01:10:40,378
But I do like the ideal of
digital property rights.
1697
01:10:40,402 --> 01:10:42,662
Wouldn't it be nice if companies
1698
01:10:42,686 --> 01:10:44,260
paid us in cryptocurrency
1699
01:10:44,284 --> 01:10:45,629
when they use our data?
1700
01:10:45,653 --> 01:10:47,887
And if we control who has access to it
1701
01:10:47,911 --> 01:10:49,832
instead of our digital overlords.
1702
01:10:49,856 --> 01:10:51,903
And then there is the question
1703
01:10:51,927 --> 01:10:53,934
of our most precious information,
1704
01:10:53,959 --> 01:10:56,418
our very identity.
1705
01:10:56,442 --> 01:10:58,276
- If you take the history of mankind,
1706
01:10:58,300 --> 01:11:00,195
a lot of blood has been shed
1707
01:11:00,219 --> 01:11:01,373
getting to democracy, right?
1708
01:11:01,397 --> 01:11:04,081
The idea that every man
has a vote in the world.
1709
01:11:04,105 --> 01:11:06,129
And you know, I take it kind of personally
1710
01:11:06,153 --> 01:11:08,193
because I was born in South
Africa during apartheid,
1711
01:11:08,218 --> 01:11:11,853
you know, a child of Indian immigrants.
1712
01:11:11,877 --> 01:11:14,490
And we were not allowed to vote.
1713
01:11:14,514 --> 01:11:16,688
- [Torsten] Vinny tells me
that in the United States alone
1714
01:11:16,712 --> 01:11:20,523
there are 14,000 different paper
forms of birth certificates
1715
01:11:20,548 --> 01:11:22,358
issued by local authorities.
1716
01:11:22,382 --> 01:11:24,240
There are mistakes on them
1717
01:11:24,264 --> 01:11:26,966
and even identity theft
starting from birth.
1718
01:11:26,990 --> 01:11:29,559
- All your information
is already out there.
1719
01:11:29,583 --> 01:11:31,452
You know, there's five
hacks a day happening,
1720
01:11:31,477 --> 01:11:34,344
so how do you prove that
you are who you say you are?
1721
01:11:34,369 --> 01:11:36,784
(soft music)
1722
01:11:39,020 --> 01:11:40,654
- [Torsten] Our crypto celebrity Andreas
1723
01:11:40,678 --> 01:11:42,702
has 10 imposters on Instagram.
1724
01:11:42,726 --> 01:11:44,290
Ryan Gosling's alter ego
1725
01:11:44,314 --> 01:11:46,500
is committing financial fraud in Bulgaria.
1726
01:11:46,523 --> 01:11:47,977
And who knows what's happening
1727
01:11:48,001 --> 01:11:50,101
with your compromised information?
1728
01:11:50,125 --> 01:11:51,483
(soft music)
1729
01:11:51,507 --> 01:11:53,804
Blockchain-based services
like Civic's identity.com,
1730
01:11:53,827 --> 01:11:56,571
or Microsoft's Ion say
they can give us control
1731
01:11:56,594 --> 01:11:59,555
of our identity and protect it.
1732
01:11:59,579 --> 01:12:02,392
- Currently, we are having our reputation,
1733
01:12:02,416 --> 01:12:04,639
our history with different systems
1734
01:12:04,664 --> 01:12:06,173
and different companies,
like Facebook and Twitter.
1735
01:12:06,197 --> 01:12:09,739
With the blockchain, the
core of important information
1736
01:12:09,763 --> 01:12:11,900
sits on that trusted system
1737
01:12:11,924 --> 01:12:15,469
which we control and we
can take from wherever
1738
01:12:15,493 --> 01:12:17,118
we want to go to something else.
1739
01:12:17,142 --> 01:12:19,975
- [Torsten] Meanwhile,
Vitalik has inspired thousands
1740
01:12:19,999 --> 01:12:22,032
of software developers to build is vision
1741
01:12:22,057 --> 01:12:23,670
of decentralised finance,
1742
01:12:23,693 --> 01:12:25,759
but early in Ethereum's history,
1743
01:12:25,782 --> 01:12:26,907
something went wrong
1744
01:12:26,932 --> 01:12:28,786
with one of the first smart contracts
1745
01:12:28,809 --> 01:12:30,744
called the DAO.
1746
01:12:30,768 --> 01:12:32,262
- The DAO went like this,
1747
01:12:32,286 --> 01:12:33,608
they wanted a completely
1748
01:12:33,632 --> 01:12:35,789
"the Decentralised
Autonomous Organisation".
1749
01:12:35,813 --> 01:12:38,906
They wanted a science fiction dream
1750
01:12:38,930 --> 01:12:40,754
of an independent computer program
1751
01:12:40,778 --> 01:12:42,559
that was immune to human influence.
1752
01:12:42,583 --> 01:12:47,347
So what they actually did was
build a forthcoming disaster.
1753
01:12:47,371 --> 01:12:49,184
- [Torsten] The problem?
1754
01:12:49,209 --> 01:12:51,433
Some sloppy code left their
safety deposit box wide open,
1755
01:12:51,457 --> 01:12:54,425
and somebody just helped themselves.
1756
01:12:54,450 --> 01:12:56,657
(soft music)
1757
01:12:56,682 --> 01:12:58,887
- It allowed them to pilfer $50 million
1758
01:12:58,911 --> 01:13:01,207
from this smart contract.
1759
01:13:01,231 --> 01:13:05,949
And that's why when I
say it's not even clear
1760
01:13:05,973 --> 01:13:07,137
whether or not it was a hack, you know,
1761
01:13:07,161 --> 01:13:08,386
this smart contract
allowed them to do that.
1762
01:13:08,410 --> 01:13:11,353
You know, what happened was
the majority of the community
1763
01:13:11,377 --> 01:13:13,807
did decide to roll back the blockchain
1764
01:13:13,831 --> 01:13:16,646
and to pretend like
the DAO never happened.
1765
01:13:16,670 --> 01:13:19,162
- [Torsten] Yep, you heard that correctly.
1766
01:13:19,186 --> 01:13:21,913
The top decision makers forked Ethereum
1767
01:13:21,937 --> 01:13:23,385
into two separate networks,
1768
01:13:23,409 --> 01:13:25,193
one where the money was gone,
1769
01:13:25,217 --> 01:13:27,117
and a new one where the money
1770
01:13:27,141 --> 01:13:29,625
was restored to it's original owners
1771
01:13:29,648 --> 01:13:31,550
breaking the first rule of cryptocurrency,
1772
01:13:31,575 --> 01:13:34,200
never alter the blockchain.
1773
01:13:34,224 --> 01:13:36,348
(soft music)
1774
01:13:36,371 --> 01:13:38,626
- Immutability last only as long
1775
01:13:38,650 --> 01:13:40,608
as the big boys haven't lost money.
1776
01:13:40,632 --> 01:13:42,791
- [Torsten] Just like Bitcoin,
1777
01:13:42,816 --> 01:13:44,385
Ethereum also experienced
scaling problems.
1778
01:13:44,409 --> 01:13:47,568
When a decentralised app
called Crypto Kitties,
1779
01:13:47,592 --> 01:13:49,587
I'm not kidding, went viral,
1780
01:13:49,611 --> 01:13:53,791
and the kitties bred like
rabbits in it's blockchain,
1781
01:13:53,815 --> 01:13:55,840
the system ground to a halt.
1782
01:13:55,864 --> 01:13:58,210
The network is now being upgraded.
1783
01:13:58,235 --> 01:14:00,144
But there are many competitors
1784
01:14:00,168 --> 01:14:02,010
who claim that their
blockchains are faster,
1785
01:14:02,034 --> 01:14:04,133
fairer, and more scalable.
1786
01:14:04,157 --> 01:14:07,505
The next shakeout will sure
be interesting to watch.
1787
01:14:07,529 --> 01:14:10,984
- It's never easy to admit that,
1788
01:14:11,008 --> 01:14:12,206
that you've been fooled.
1789
01:14:15,193 --> 01:14:16,375
Maybe I've been fooled.
1790
01:14:21,937 --> 01:14:22,937
Maybe?
1791
01:14:23,985 --> 01:14:24,880
- [Torsten] The crypto community
1792
01:14:24,905 --> 01:14:26,628
doesn't agree on much of anything,
1793
01:14:26,652 --> 01:14:28,773
except when it comes to this guy.
1794
01:14:28,797 --> 01:14:31,393
- Hello, my name is Dr. Craig Wright.
1795
01:14:31,416 --> 01:14:34,142
I'm the chief scientist of nChain Limited.
1796
01:14:34,166 --> 01:14:35,998
- On the balance of the evidence,
1797
01:14:36,022 --> 01:14:39,480
Craig Wright almost certainly
is not Satoshi Nakamoto.
1798
01:14:39,504 --> 01:14:41,835
- The proofs that he gave
were not real proofs.
1799
01:14:41,860 --> 01:14:43,811
In the end, he either chickened out
1800
01:14:43,835 --> 01:14:45,269
or didn't actually have the proof.
1801
01:14:45,293 --> 01:14:48,559
- Craig Wright obviously
seems to be a scammer.
1802
01:14:51,627 --> 01:14:54,770
- I'm happy to say that
Craig Wright is a fraud.
1803
01:14:54,794 --> 01:14:56,874
- I know he's controversial.
1804
01:14:56,898 --> 01:14:59,545
No one really changes the world
1805
01:14:59,568 --> 01:15:02,835
without being bold, without
disrupting peoples' ideas,
1806
01:15:02,859 --> 01:15:05,627
an without drawing a little
controversy around the way.
1807
01:15:05,651 --> 01:15:06,827
(soft music)
1808
01:15:06,852 --> 01:15:08,226
- [Torsten] But the majority of industry
1809
01:15:08,250 --> 01:15:09,537
says Craig is crazy or a conman.
1810
01:15:09,561 --> 01:15:13,641
- So Craig, kindly join us on stage.
1811
01:15:13,665 --> 01:15:15,169
- [Torsten] And that
giving him screen time
1812
01:15:15,193 --> 01:15:16,713
is irresponsible.
1813
01:15:16,737 --> 01:15:17,545
(soft music)
1814
01:15:17,568 --> 01:15:18,487
- And I'll say this quite frankly
1815
01:15:18,511 --> 01:15:21,780
because I've got more
money than your country.
1816
01:15:23,775 --> 01:15:24,969
- [Torsten] But I was in the area
1817
01:15:24,993 --> 01:15:26,723
and just couldn't resist.
1818
01:15:26,746 --> 01:15:28,579
(soft music)
1819
01:15:28,603 --> 01:15:30,407
(doorbell rings)
1820
01:15:30,431 --> 01:15:32,846
(soft music)
1821
01:15:34,124 --> 01:15:35,599
A few quick facts,
1822
01:15:35,623 --> 01:15:36,489
Craig is the person
1823
01:15:36,513 --> 01:15:39,157
who claimed to be Satoshi
Nakamoto on the BBC.
1824
01:15:39,182 --> 01:15:42,156
But his cryptographic
proof didn't check out,
1825
01:15:42,180 --> 01:15:45,034
and since then, many just
see him as an imposter.
1826
01:15:45,058 --> 01:15:47,262
- I'm the guy with a law degree
1827
01:15:47,286 --> 01:15:50,993
that used to work for federal police
1828
01:15:51,017 --> 01:15:52,980
and military intelligence.
1829
01:15:53,004 --> 01:15:55,879
(electronic music)
1830
01:15:55,903 --> 01:15:57,807
- You would actually be
the perfect super villain
1831
01:15:57,831 --> 01:15:59,094
for us because everybody
1832
01:15:59,119 --> 01:16:01,195
kind of doesn't believe you, hates you.
1833
01:16:01,219 --> 01:16:03,318
What do you say to your critics?
1834
01:16:03,342 --> 01:16:05,693
- Do I start with a muahuahua?
1835
01:16:05,718 --> 01:16:09,405
Many people are hated early on
1836
01:16:09,429 --> 01:16:10,744
because they're not understood.
1837
01:16:10,768 --> 01:16:12,332
If it doesn't have a use,
1838
01:16:12,356 --> 01:16:13,771
it shouldn't have a value.
1839
01:16:13,795 --> 01:16:16,418
Right now, practically
everything is a Ponzi.
1840
01:16:16,442 --> 01:16:17,996
I don't particularly like Ethereum.
1841
01:16:18,020 --> 01:16:19,525
It's a dead end.
1842
01:16:19,549 --> 01:16:21,059
They can say whatever
they want about ERC-20
1843
01:16:21,084 --> 01:16:24,499
except practically
everything they're doing
1844
01:16:24,523 --> 01:16:26,717
that they want to solve,
I solved years ago.
1845
01:16:26,741 --> 01:16:31,736
Decentralisation was never
the point of Bitcoin, ever.
1846
01:16:32,096 --> 01:16:33,501
I was called a fool then,
1847
01:16:33,525 --> 01:16:35,057
and I'll be called a fool again.
1848
01:16:35,081 --> 01:16:37,693
And every single time I'll be right.
1849
01:16:37,718 --> 01:16:41,800
I picked up "Mastering
Bitcoin" the other day,
1850
01:16:41,825 --> 01:16:43,651
and I opened page one.
1851
01:16:43,675 --> 01:16:45,679
And I went this is wrong.
1852
01:16:45,702 --> 01:16:50,094
Silkroad was the worst thing
to ever happen to Bitcoin.
1853
01:16:50,119 --> 01:16:52,263
- You seem to think that nobody else
1854
01:16:52,287 --> 01:16:54,440
has anything interesting to say.
1855
01:16:54,464 --> 01:16:56,288
You've already solved the
problems many years ago.
1856
01:16:56,312 --> 01:16:58,844
That's kind of the vibe
that I'm getting here.
1857
01:16:58,869 --> 01:16:59,888
- Fairly much, yes.
1858
01:16:59,912 --> 01:17:01,850
- [Torsten] Okay.
1859
01:17:02,905 --> 01:17:04,831
Turns out, Craig's playbook is patents.
1860
01:17:04,855 --> 01:17:07,184
Some say he's a patent troll.
1861
01:17:07,208 --> 01:17:09,545
- Well, I've got a bucket list bit
1862
01:17:09,568 --> 01:17:11,407
which is to beat Edison, which
1863
01:17:11,432 --> 01:17:14,160
as silly as it sounds
1864
01:17:14,184 --> 01:17:15,936
came from a Simpsons episode.
1865
01:17:15,960 --> 01:17:17,727
To beat Mr. Edison,
1866
01:17:17,751 --> 01:17:20,573
I need to get 1,085 (patents).
1867
01:17:20,597 --> 01:17:22,512
And right at the moment,
1868
01:17:22,536 --> 01:17:25,476
I'm on white paper 1,074.
1869
01:17:26,742 --> 01:17:27,835
- [Torsten] For each white paper,
1870
01:17:27,860 --> 01:17:29,659
he claims to file about 1.1 patents.
1871
01:17:30,768 --> 01:17:34,657
- The first 163 will
be very shortly public.
1872
01:17:34,681 --> 01:17:37,517
Next year, people are gonna start seeing
1873
01:17:37,541 --> 01:17:38,975
that we have hundreds of patents,
1874
01:17:38,999 --> 01:17:41,043
and everything changes.
1875
01:17:41,067 --> 01:17:43,553
We file PCT and keep them
secret as long as we can.
1876
01:17:43,577 --> 01:17:46,538
- There's a huge
philosophical disagreement
1877
01:17:46,562 --> 01:17:47,862
between myself and Craig.
1878
01:17:47,887 --> 01:17:50,833
So I think patents
1879
01:17:50,857 --> 01:17:52,398
are Government granted monopoly.
1880
01:17:52,423 --> 01:17:54,700
- [Torsten] The big brains and big egos
1881
01:17:54,724 --> 01:17:56,118
who broke away from Bitcoin
1882
01:17:56,142 --> 01:17:58,096
couldn't hash out their differences.
1883
01:17:58,120 --> 01:17:59,969
So there was another split.
1884
01:17:59,994 --> 01:18:03,475
Craig's new coin also claims
to be the 'real' Bitcoin.
1885
01:18:03,499 --> 01:18:06,439
And he wants to enable blocks
a million times larger,
1886
01:18:06,463 --> 01:18:08,761
updating and storing this giant blockchain
1887
01:18:08,785 --> 01:18:11,261
will be impossible for normal computers.
1888
01:18:11,285 --> 01:18:13,184
I just can't figure this guy out.
1889
01:18:13,208 --> 01:18:16,236
Is he a genius, a madman, a fraud?
1890
01:18:16,260 --> 01:18:17,996
Maybe all three?
1891
01:18:18,020 --> 01:18:20,541
- And a lot of the things he says are very,
1892
01:18:20,565 --> 01:18:23,065
are just wrong technically.
1893
01:18:23,089 --> 01:18:25,148
- However, I did calculate
1894
01:18:25,173 --> 01:18:27,906
that nChain spent tens
of millions of dollars
1895
01:18:27,930 --> 01:18:29,903
to develop and file these patents.
1896
01:18:29,927 --> 01:18:32,089
And some have been granted.
1897
01:18:32,112 --> 01:18:35,778
What's the point of having
a war chest full of IP
1898
01:18:35,802 --> 01:18:37,727
if they aren't going to enforce it?
1899
01:18:37,751 --> 01:18:39,298
So basically what I'm looking at
1900
01:18:39,322 --> 01:18:42,831
is stuff that nobody's ever
really seen in the community.
1901
01:18:42,855 --> 01:18:43,664
- [Craig] That's correct.
1902
01:18:43,688 --> 01:18:44,496
Yes.
1903
01:18:44,521 --> 01:18:46,074
- As soon as the price of Bitcoin
1904
01:18:46,098 --> 01:18:47,564
and the cryptocurrencies went higher,
1905
01:18:47,588 --> 01:18:49,677
what did most people do?
1906
01:18:49,701 --> 01:18:51,772
All they did was start adopting
1907
01:18:51,796 --> 01:18:54,090
all the worst behaviours of bankers,
1908
01:18:54,114 --> 01:18:55,340
scamming the market,
1909
01:18:55,364 --> 01:18:58,010
centralising wealth in a few hands.
1910
01:18:58,034 --> 01:19:01,195
- [Torsten] Hmm, I think
that's called human nature.
1911
01:19:01,219 --> 01:19:03,508
- So everyone wants to change the world
1912
01:19:03,532 --> 01:19:06,080
simply because they're not
in the position of power.
1913
01:19:06,103 --> 01:19:08,406
As soon as they get into that position,
1914
01:19:08,430 --> 01:19:09,719
they do exactly the same thing.
1915
01:19:09,743 --> 01:19:12,232
- [Torsten] So guys like you
will build a better future
1916
01:19:12,255 --> 01:19:14,709
and we can trust you guys
better than the bankers?
1917
01:19:14,733 --> 01:19:15,758
- You don't have to trust us.
1918
01:19:15,782 --> 01:19:16,787
That's the beauty.
1919
01:19:16,811 --> 01:19:18,376
We're building a trustless,
1920
01:19:18,400 --> 01:19:20,590
decentralised system that
gives power to people.
1921
01:19:20,614 --> 01:19:23,028
(soft music)
1922
01:19:27,053 --> 01:19:29,645
- Trustless sounds like there's no trust.
1923
01:19:29,669 --> 01:19:32,731
But actually it means we
don't need to trust you.
1924
01:19:32,755 --> 01:19:35,568
I think the better word
should be trust-free..
1925
01:19:35,593 --> 01:19:38,855
About one third, or maybe
half of all the cost
1926
01:19:38,879 --> 01:19:41,799
of all the transactions are
paid to establish trust
1927
01:19:41,823 --> 01:19:43,794
between trading parties.
1928
01:19:43,818 --> 01:19:46,847
Like we're paying for lawyers.
1929
01:19:46,871 --> 01:19:49,005
We're paying auditors.
1930
01:19:49,029 --> 01:19:51,692
We're paying even police, even regulators,
1931
01:19:51,716 --> 01:19:53,621
Government to build trust,
1932
01:19:53,645 --> 01:19:55,702
to ensure everything will be enforced.
1933
01:19:55,726 --> 01:19:58,656
So trust is quite expensive.
1934
01:19:58,680 --> 01:20:00,324
Blockchain is the first time
1935
01:20:00,348 --> 01:20:02,272
that we saw some technology
1936
01:20:02,296 --> 01:20:04,709
that can eliminate the cost
1937
01:20:04,733 --> 01:20:07,686
or reduce the cost of trust dramatically.
1938
01:20:07,710 --> 01:20:09,434
Magical things will happen.
1939
01:20:09,459 --> 01:20:10,903
- [Torsten] Trust may be expensive,
1940
01:20:10,927 --> 01:20:12,558
but it's also in short supply.
1941
01:20:12,582 --> 01:20:14,150
All around the globe,
1942
01:20:14,174 --> 01:20:16,365
people have been losing
faith in the media,
1943
01:20:16,389 --> 01:20:18,333
institutions, and Governments.
1944
01:20:18,357 --> 01:20:20,504
So what if this new technology
1945
01:20:20,528 --> 01:20:22,148
could fix one of society's biggest issues?
1946
01:20:22,173 --> 01:20:24,152
But the question remains:
1947
01:20:24,175 --> 01:20:25,880
What if you are cheated?
1948
01:20:25,904 --> 01:20:28,096
What if your password is stolen,
1949
01:20:28,120 --> 01:20:29,115
and the money,
1950
01:20:29,139 --> 01:20:30,164
the contracts,
1951
01:20:30,188 --> 01:20:31,949
your identity is gone?
1952
01:20:34,219 --> 01:20:36,279
If code is law,
1953
01:20:36,303 --> 01:20:40,382
who administers justice?
1954
01:20:40,406 --> 01:20:43,050
(soft music)
1955
01:20:43,075 --> 01:20:45,362
Aren't you worried that the
promise of decentralizing power
1956
01:20:45,386 --> 01:20:48,635
is kind of in jeopardy
with you and Charlie
1957
01:20:48,659 --> 01:20:50,523
and Vitalik and Craig
1958
01:20:50,548 --> 01:20:52,871
as such central figureheads?
1959
01:20:52,896 --> 01:20:54,530
- Yeah, I really wish
1960
01:20:54,554 --> 01:20:57,307
there weren't public figures or leaders.
1961
01:20:57,331 --> 01:20:58,660
I want everyone to lead themselves,
1962
01:20:58,684 --> 01:21:01,253
but sadly that's not the world we live in.
1963
01:21:01,277 --> 01:21:02,562
If you're gonna look to a leader,
1964
01:21:02,585 --> 01:21:04,106
you know, choose your leader wisely.
1965
01:21:04,130 --> 01:21:06,857
(soft music)
1966
01:21:06,880 --> 01:21:08,196
- But just how different are they
1967
01:21:08,219 --> 01:21:10,114
from our current political, financial,
1968
01:21:10,138 --> 01:21:11,303
and business leaders?
1969
01:21:11,327 --> 01:21:13,594
Are their systems really
resistant to corruption,
1970
01:21:13,618 --> 01:21:15,269
immune to manipulation,
1971
01:21:15,293 --> 01:21:16,969
and worthy of our trust?
1972
01:21:16,993 --> 01:21:17,862
(soft music)
1973
01:21:17,886 --> 01:21:21,323
Maybe that's why the best
bet is on the only project
1974
01:21:21,347 --> 01:21:22,313
without a figurehead:
1975
01:21:22,337 --> 01:21:24,898
Bitcoin doesn't care about human drama,
1976
01:21:24,922 --> 01:21:28,118
bad press, or what anyone thinks.
1977
01:21:28,142 --> 01:21:31,389
Yeah, sure, it hasn't succeeded
as a global currency yet,
1978
01:21:31,414 --> 01:21:33,026
but in the past decade,
1979
01:21:33,050 --> 01:21:36,705
it has been the world's best
performing financial asset.
1980
01:21:36,728 --> 01:21:39,594
So we're back to where we started:
1981
01:21:39,618 --> 01:21:41,428
The genius who vanished.
1982
01:21:41,452 --> 01:21:42,960
(electronic music)
1983
01:21:42,985 --> 01:21:44,818
- With Satoshi being gone from Bitcoin,
1984
01:21:44,843 --> 01:21:49,285
Bitcoin is really a very
decentralised network and currency.
1985
01:21:49,309 --> 01:21:52,406
- He was intelligent enough to know that
1986
01:21:54,128 --> 01:21:54,937
a system without a father
1987
01:21:54,960 --> 01:21:56,348
was gonna be much more robust
1988
01:21:56,371 --> 01:21:57,925
than a system with a father.
1989
01:21:57,949 --> 01:21:59,564
(electronic music)
1990
01:21:59,588 --> 01:22:01,112
- No father maybe,
1991
01:22:01,137 --> 01:22:02,472
but without leaving a will,
1992
01:22:02,496 --> 01:22:05,018
the kids are now fighting over
the meaning of his invention,
1993
01:22:05,041 --> 01:22:07,267
and the inheritance,
1994
01:22:07,291 --> 01:22:10,559
projecting their fears and
fantasies onto his legacy.
1995
01:22:10,584 --> 01:22:12,999
(soft music)
1996
01:22:14,394 --> 01:22:16,398
For some, it's money for the Internet
1997
01:22:16,422 --> 01:22:18,166
that can replace middlemen
1998
01:22:18,190 --> 01:22:19,954
and bank the unbanked.
1999
01:22:19,978 --> 01:22:22,262
And maybe a tool for illicit trade,
2000
01:22:22,286 --> 01:22:23,530
or is it digital gold?
2001
01:22:23,554 --> 01:22:25,231
A totally new asset class.
2002
01:22:25,255 --> 01:22:27,288
A bet against the bankers.
2003
01:22:27,312 --> 01:22:29,459
And insurance against inflation.
2004
01:22:29,483 --> 01:22:31,869
Protection from corrupt politicians.
2005
01:22:31,893 --> 01:22:34,332
And a weapon against the state.
2006
01:22:34,356 --> 01:22:36,813
Maybe the end of money as we know it.
2007
01:22:36,837 --> 01:22:39,800
For some entrepreneurs,
it represents a shortcut
2008
01:22:39,825 --> 01:22:41,529
to fund their dreams.
2009
01:22:41,553 --> 01:22:43,505
A platform for fairer finance.
2010
01:22:43,530 --> 01:22:45,993
Which is why incumbents fight it.
2011
01:22:46,017 --> 01:22:48,175
Some say public blockchains
2012
01:22:48,200 --> 01:22:50,386
are just slow and useless databases.
2013
01:22:50,410 --> 01:22:53,920
While big business is busy
building private blockchains
2014
01:22:53,943 --> 01:22:55,628
to boost efficiency.
2015
01:22:55,652 --> 01:22:57,816
Or maybe this decentralised technology
2016
01:22:57,840 --> 01:23:00,273
is a new protocol layer for the Internet
2017
01:23:00,298 --> 01:23:02,231
upon which we can build a better web
2018
01:23:02,255 --> 01:23:04,719
to dethrone the tech giants,
2019
01:23:04,743 --> 01:23:06,407
reclaim free speech,
2020
01:23:06,432 --> 01:23:08,386
protect online identities,
2021
01:23:08,410 --> 01:23:10,898
and facilitate free trade in
a borderless, digital economy.
2022
01:23:10,923 --> 01:23:14,109
Oh, and a tool to rebuild
trust in our societies,
2023
01:23:14,133 --> 01:23:18,346
and yes, maybe even save the planet.
2024
01:23:18,370 --> 01:23:22,299
That's a never ending
list of cryptopian ideas.
2025
01:23:22,323 --> 01:23:24,737
(soft music)
2026
01:23:25,942 --> 01:23:27,160
Isn't this a bit too much to ask
2027
01:23:27,184 --> 01:23:29,059
of a nine page document?
2028
01:23:29,083 --> 01:23:31,496
(soft music)
2029
01:23:36,550 --> 01:23:38,226
Yeah sure, the Internet and the Web
2030
01:23:38,250 --> 01:23:39,855
started out as white papers too.
2031
01:23:39,879 --> 01:23:42,925
But it took decades before
it's infrastructure was built,
2032
01:23:42,950 --> 01:23:44,697
became user friendly,
2033
01:23:44,721 --> 01:23:46,746
and ready to scale globally.
2034
01:23:46,771 --> 01:23:49,484
- We kind of domesticate
the wild potential
2035
01:23:49,508 --> 01:23:51,754
of technologies into what's familiar.
2036
01:23:51,778 --> 01:23:54,340
And we dramatically underestimate,
2037
01:23:54,364 --> 01:23:55,538
or under imagine
2038
01:23:55,562 --> 01:23:57,837
what that technology may eventually do.
2039
01:23:57,861 --> 01:23:59,145
- [Torsten] It'll be the users,
2040
01:23:59,169 --> 01:24:00,563
maybe billions of them,
2041
01:24:00,587 --> 01:24:02,764
who will adopt this technology
without even knowing
2042
01:24:02,788 --> 01:24:05,356
what a blockchain is or how it works.
2043
01:24:06,316 --> 01:24:08,594
Because here's the thing:
2044
01:24:08,619 --> 01:24:11,023
The average users don't
care about the wires
2045
01:24:11,047 --> 01:24:12,671
that move their money quicker,
2046
01:24:12,695 --> 01:24:14,130
don't know about the software
2047
01:24:14,154 --> 01:24:16,592
that moves this movie or that picture,
2048
01:24:16,616 --> 01:24:18,675
what will move them
2049
01:24:18,699 --> 01:24:22,032
are services that'll make
their days a little brighter,
2050
01:24:22,056 --> 01:24:24,088
their chores a little lighter,
2051
01:24:24,112 --> 01:24:28,243
and their lives a little richer.
2052
01:24:29,896 --> 01:24:31,200
♪ Dude's got suits ♪
2053
01:24:31,224 --> 01:24:34,642
♪ Dude's got a tie and a big smile ♪
2054
01:24:34,666 --> 01:24:37,252
♪ And he's pitching me some blockchain ♪
2055
01:24:37,276 --> 01:24:38,621
♪ Supply chains are broken ♪
2056
01:24:38,645 --> 01:24:39,815
♪ Do we need his token ♪
2057
01:24:39,839 --> 01:24:41,337
♪ There's a pain in my brain ♪
2058
01:24:41,361 --> 01:24:42,411
♪ and I'm going insane ♪
2059
01:24:42,434 --> 01:24:44,591
♪ I don't want no blockchain ♪
2060
01:24:44,615 --> 01:24:45,987
♪ That one plays chess at his desk ♪
2061
01:24:46,012 --> 01:24:47,181
♪ poses for the press ♪
2062
01:24:47,205 --> 01:24:49,169
♪ The price of his coin just tripled ♪
2063
01:24:49,193 --> 01:24:51,380
♪ I just stare into the
Ether, take a breather ♪
2064
01:24:51,404 --> 01:24:54,393
♪ 'cause I don't wanna cause a Ripple ♪
2065
01:24:54,416 --> 01:24:57,215
♪ Don't wanna cause a Ripple ♪
2066
01:24:57,239 --> 01:25:01,918
♪ I won't trust him with my money ♪
2067
01:25:01,942 --> 01:25:06,937
♪ Will never trust him with my life ♪
2068
01:25:07,123 --> 01:25:09,174
♪ Well I have been told ♪
2069
01:25:09,198 --> 01:25:12,355
♪ That my life is controlled ♪
2070
01:25:12,379 --> 01:25:15,626
♪ But Bitcoin ain't Gold ♪
2071
01:25:16,813 --> 01:25:19,228
(rock music)
2072
01:25:32,910 --> 01:25:34,237
♪ Talks Bretton Woods ♪
2073
01:25:38,267 --> 01:25:39,208
♪ That guy speaks code ♪
2074
01:25:39,232 --> 01:25:40,521
♪ Runs a full node ♪
2075
01:25:40,545 --> 01:25:41,708
♪ This is new money production ♪
2076
01:25:44,228 --> 01:25:45,317
♪ of illicit goods ♪
2077
01:25:45,341 --> 01:25:47,846
♪ This is a weapon of math destruction ♪
2078
01:25:47,870 --> 01:25:50,347
♪ This is a weapon of math destruction ♪
2079
01:25:50,371 --> 01:25:52,371
♪ This is a weapon of math destruction ♪
2080
01:25:52,396 --> 01:25:53,603
♪ That lady's quick on her feet ♪
2081
01:25:53,627 --> 01:25:55,316
♪ Lit in her a tweets ♪
2082
01:25:55,340 --> 01:25:57,143
♪ Says she takes on the haters ♪
2083
01:25:57,166 --> 01:25:58,230
♪ and nothing can break her ♪
2084
01:25:58,254 --> 01:25:59,969
♪ The Web could be much safer ♪
2085
01:25:59,994 --> 01:26:02,170
♪ And our Freedom quite greater ♪
2086
01:26:02,193 --> 01:26:06,333
♪ And it's all in this white paper ♪
2087
01:26:06,357 --> 01:26:08,125
♪ All in this white paper ♪
2088
01:26:08,148 --> 01:26:09,991
♪ I don't trust them ♪
2089
01:26:10,014 --> 01:26:12,312
♪ With my money ♪
149967
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