All language subtitles for Magic.Money.The.Bitcoin.Revolution.2017.1080p.Amazon.WEB-DL.DD2.0.H.264-QOQ-English

So here I have two devices
and I will transfer one dollar

from this device to this
device instantaneously.

Enter the amount.

And send.

I'm seeing the transaction now.

And there it is.

What you just witnessed
is what looks like

a standard financial
transaction.

Money was transferred
electronically

from one account to another.

But while it appears like
an ordinary bank transfer,

it may perhaps be the most
revolutionary technology

you're likely to see
in your lifetime.

This technology
is called Bitcoin.

MAGIC MONEY:
THE BITCOIN REVOLUTION

Subrip: Pix

Money makes possible the
exchange of many different

goods and services among
many different people.

Wherever we go, we
see money being used

as a medium of exchange.

Money is at
the core of our existence.

Everyday we transact
with one another.

Currently almost all of
our daily transactions

involve a third party.

A bank, credit card company,
or remittance provider.

And ultimately it's
these institutions that

carry out the transaction
on our behalf.

This is until the
invention of Bitcoin.

Bitcoin is truly one of
the most important inventions

ever in the history
of humankind.

That's how big of an impact
it's gonna have on our lives.

And it sounds really
difficult and complicated

and hard to understand
hearing about it.

If you'd only heard about
email it would sound difficult

and complicated and hard to use.

Bitcoin is literally
easier to use than email.

So what
exactly is Bitcoin?

Well for starters, Bitcoin
isn't actually a coin.

Bitcoin is a new form of money.

A currency that lives
solely on the internet,

one that some have even
called magic internet money.

I think part of the
confusion is that Bitcoin

is actually two
different things.

It's both a currency
and a payment network.

And we've never had
one thing that's

both of those at the same time.

So the dollar is a currency,
but it's not a payment network.

Paypal and Visa are
payment networks,

but they're not currencies.

Bitcoin is both of those
things at the same time,

but it has this other property,
and that other property

is that it can instantly
be teleported anywhere

in the world just like
that almost for free.

And there's nothing that
anybody can do to block

these teleportation's,
there's nothing anybody can do

to intercept it,
and if you're careful

about how you use
Bitcoin you can do these

teleportations anonymously.

So with a push
of a button, you can pay

anyone in the
world or receive payment

from anyone, anywhere
in the world.

In the aftermath
of the global financial crisis

an author using the
pseudonym Satoshi Nakamoto

posted a nine page document
onto an online forum.

The document titled
Bitcoin: a Peer-to-Peer

Electronic Cash System would
soon become the building block

for what is today the
first fully working concept

of decentralized money.

These are the daily candles
of Bitcoin just in the

backdrop, but I want to talk
about these trend lines.

You've seen them on
other presentations,

even earlier today.

I started out working at
Bear Stearns back in 2007,

so about a year and a half or
so before the financial crisis

really started to hit.

And after Bear Stearns I joined
JP Morgan, where I became

a VP and that was my last job.

All of these jobs were either
mid-town or down-town Manhattan.

Tone Vays
is a Wall Street veteran.

A former VP at JP Morgan, he
now spends his time studying

and educating audiences
about Bitcoin.

Bitcoin is generally
difficult to explain.

You want to try and break it
down as simple as you can.

So the simplest way is
basically it's like a message,

it's a digital message
that you're passing.

And normally we're
all used to computers.

We're all sending emails,
we're all sending pictures,

but you're always
sending a copy.

Anytime you hit the send
button in a computer

you always retain a copy, you
always retain the original.

And when it comes to financial
transactions, you hit

the send button and you have
an intermediary, the bank,

that is moving money from
one account to another.

And this is the problem
that Bitcoin solved.

It was able to take something
digital and when you hit

the send button, you're not
actually sending a copy,

you're actually sending
a digital object.

At
It's core Bitcoin

is basically a new
monetary system.

However Bitcoin is unlike
any other system we've seen

in the past because it isn't
centralized in one place.

This decentralized nature of
the Bitcoin platform is one of

the things that make it so
unique and world changing.

We're all familiar with Paypal

or Visa or bank of whatever.

All of these traditional
services that we're used to

control who's allowed to
have an account, who can send

money to who from what
country's users can send

money to other country's users.

With Bitcoin there
is no entity that's

controlling any of that.

There's just this software
protocol that anyone can write

software to interact with
and then anyone can install

that software on their
phone or on their computer

and once they have the
software installed they can now

interact with anyone else
anywhere in the entire world

that's also using
the Bitcoin software.

This software
that runs the Bitcoin protocol

is commonly called a wallet.

A digital purse which
stores and allows the holder

to move Bitcoins from
one wallet to another.

The Bitcoin protocol
is open source,

meaning that the
programming code is

freely available to add
to and redistribute.

In this way, similar to
anyone being able to add a new

website to the world wide
web, programmers are able

to add new products to
the Bitcoin network.

We have Jason for whom
this is very late evening

because he is in Australia
and we're about to do

Jason's first Bitcoin
transaction over Skype

as our medium, so everyone can
see how quick and easy it is.

On my end I will hit send.

And Jason is gonna hit request.

So when he hits request, a
QR code should have displayed

in the middle of your screen.

And he's gonna put it up
the camera of Skype so I can

scan it with the camera
in my cell phone.

Alright I see the QR code,
my phone is trying to scan it

and there it is.

I scanned it.

So I feel kinda generous,
let's send Jason five dollars.

So I have just sent Jason
five dollars in Bitcoin

and let me know when it's
registering on your end

that you have five
dollars worth of Bitcoin.

And there it is.

Okay so that took
about 10 to 15 seconds.

Bitcoin enables
users to send and receive money

instantly without the
involvement of a third party.

This digital breakthrough
allows the user to effectively

become their own bank.

This is a complex idea to
handle, but the possibilities

of this new bank-less
currency are enormous.

With the exception of
actually handing physical cash

to you, generally we have
to rely on third parties

for lots of different
payments, be it credit cards

or wire transfers
internationally or even sort of

keeping cash under your bed,

storing large amounts
of cash we use banks.

Bitcoin allows
us to do all of those things

without any third parties.

So in that sense we
can be our own bank,

our own
payment system,

our own
international wire system,

our own
remittance system,

we can do all these
things without relying

on any third parties.

That's what Bitcoin
allows us to do.

Before Bitcoin all of these
companies like Paypal and Visa

and Bank of America and, you
know, any business, they had

a ledger that kept track of
their account balances.

So Paypal has a ledger
that keeps track of

who has how much money
in each account

and that ledger is
stored on Paypal servers

in Paypal's data
centre somewhere.

And before Bitcoin,
people thought that it

was impossible, the
mathematicians

and computer scientists

thought it was
impossible to have consensus

on a distributed
ledger like this.

But what Bitcoin did is
came along and figured out

how to keep track of this
ledger

of who has what Bitcoins.

But instead of the ledger
being on one data centre

it's on everybody's computer
across the entire planet

that's running the
Bitcoin network including

my laptop here.

I have a full copy of the
entire Bitcoin ledger.

This public
ledger known as the block-chain

is what could make Bitcoin a
financial game changer.

Bitcoin is what is known
as a cryptocurrency

meaning that it's a digital
currency in which encryption

is used to regulate the
creation of new units

and verify the
transfer of funds.

New Bitcoins come into existence

through a process called mining.

A miner is a person or entity
who runs a very powerful

computer in an effort to
solve a complex mathematical

puzzle known as a block.

Miners around the world compete
to solve or close a block

and are rewarded with
newly generated Bitcoins

if they're successful.

All transactions that travel
though the Bitcoin network

are pieces of this complex
mathematical puzzle.

So when a miner solves a
puzzle, they're actually

verifying the integrity of
each and every transaction.

Welcome.

This is one giant
abandoned recycling plant.

We've got incinerators over
there, those two big silos.

Right around this wall we have

a megawatt worth
of solar panels.

It's a lot.

Um that's about as much
as what we consume.

So we're gonna be able to offset

our electrical costs completely.

This is a work in progress
but a Bitcoin mine is a group

of computers that contribute
it's processing power

to facilitating
Bitcoin transfers

and the security of the network.

Yeah it is one big super
computer and all of these

individual computers are
kind of throwing guesses

at this mathematical problem.

And it's a very
difficult problem,

it takes lots and lots
of computers to guess it.

Once that guess is correct,
that is sent to all the rest

of the computers and with
that answer they record

all the transactions that have
been done up to that point.

It's a very secure system
for facilitating transfers,

recording transfers, and
making sure that no kind of

shady work has been done.

Because there's some methods
in financial transactions

where you can double send and
this whole block-chain thing

is one great method of making
sure that doesn't happen.

Say if Alice wants
to send Bob an email.

What would happen under the
hood is that along the path

of the email across the
network, her email gets copied

in many places of the network
and eventually the final copy

will be relayed to Bob.

That's how email works, that's
how digital transfers work,

and that's how it should
work for the majority

of digital transfers.

That's well and good,
however in the case of money,

that would be disastrous
if that were to be the way

that money was
transferred digitally.

You don't want
copies of the same

dollar bill to exist
on the network.

That would ruin the
scarcity premise of money.

And so this was the problem
that Satoshi Nakamoto

tackled with the
creation of Bitcoin.

And so what happens with Bitcoin
on the Bitcoins block-chain

is that when Alice wants
to send one Bitcoin to Bob,

she creates a transaction
and that transaction gets

copied across the
entire network.

However this is different
than a single email as

that transaction has
embedded in it instructions

to the rest of the network
that says, from here on out

control over this Bitcoin
is now conferred to Bob

and the rest of the
network honours that.

One time I realized that
Bitcoin is really difficult

for people to understand is
I spent the whole evening

explaining Bitcoin to a
friend of mine and then I got

home that night and she
posted on my Facebook page

and she goes, yeah I was
thinking more about Bitcoins

and you were explaining
Bitcoin mining.

Does that mean that Bitcoins
are originally underground?

I realized that Bitcoin's
a difficult concept

for people to understand and
especially Bitcoin mining

as well because Bitcoins are
not originally under ground.

For new users Bitcoin

can be a difficult
concept to understand.

Bitcoins aren't physical

and they certainly
aren't underground.

However, there are some
interesting similarities between

Bitcoin and a precious metal
that is found underground.

Gold.

Gold has been money and a store

of value for thousands of years.

Today gold is mined
all over the world.

The amount of gold that can
be extracted from the ground

decreases over the life
of a mine until eventually

the mine is exhausted
of all of its gold.

Bitcoin are also mined
in a similar fashion.

The Bitcoin algorithm is
programmed so that the reward

for mining new Bitcoins
is halved every four years

until the year 2140
when all Bitcoins

will have been deemed
to have been mined.

Perhaps the mysterious
creator behind Bitcoin

was trying to mimic
the attributes of gold

almost as if to create a
digital gold coin which could be

divided and then sent
instantly around the world.

The creator of Bitcoin whoever
he is was a really, really,

really smart guy and he
obviously liked maths a lot.

And he sat down and did some
calculations and thought

to himself if everybody in
the entire world were to start

using Bitcoin, how many
Bitcoins would we need in order

for that to be able to
accommodate everybody using

Bitcoin for this.

And each Bitcoin
can be divided down

to 100 millionth of a Bitcoin.

If everybody in the entire
world were to start using

Bitcoin as their money, the
smallest unit of the Bitcoin,

which is called the
Satoshi, it's 100 millionth

of a Bitcoin, would still be
worth less than one US penny

if the entire world were
to start using Bitcoin.

So who is
this Satoshi Nakamoto?

Two years after publishing
the white paper for the peer

to peer electronic cash
system, this mysterious figure

vanished never to
be heard from again.

The only clues to his or
her identity can be found

in the white paper.

Some speculate he or
she is of British origin

due to the writings
containing some British slang.

Others believe that rather
than being one person,

Satoshi was a group of
hackers working in concert

to create a new monetary
system which would

decentralize money
as we know it.

It's very interesting
who Satoshi is.

There's lots of
speculation especially

among the very early
people in Bitcoin.

But what difference does it make

whether we know who
created Bitcoin.

I don't know that it
makes any difference.

There's lots of stuff that
we use that we don't know

who created it and yet
it gives us a lot of

advantages in our day
to day activities.

I have no idea who Satoshi is.

We know very little about
Satoshi and so he could be

at an event, someone we know,

someone I've spoken to, he
could be a friend of mine

for all I know.

I don't know who it is and I
don't know if we'll ever know

but it's a fun game.

Am I Satoshi?

I don't think I'll
answer that one.

Regardless of
the true identity of Satoshi,

what he or she has invented
could have profound

effects on how our world
evolves into the future.

Because Bitcoin
enables the user to act

as their own bank, in
essence it frees the user

from the traditional
gatekeepers to their wealth.

We all use
keys in our daily lives.

Keys allow us to access and
control our valued possessions.

They also protect our
valuables from being stolen.

Take your car as an example.

Holding the keys to your car

allows you access to
it whenever you wish.

But suppose you've had
a few too many to drink

and your loyal friend
confiscates your keys from you.

The car may still be yours,
but now you no longer

control it and must
hail a ride home.

The same can be said
of our finances.

Although you may
have the debit card

and password to
your bank account,

the funds aren't directly
in your possession.

Every time you make a
withdrawal or transfer from

your bank account, the
bank is actually acting

on your behalf and
moving the funds for you.

This is where bit is
fundamentally different.

Bitcoin enables an
individual to hold

the private keys of
their own wealth.

So with pretty much every
asset that we have out there

we don't directly hold
the dominion or control

over that asset.

For example the Royal Bank
of Scotland, they had 700,000

accounts, ATMs, just went
down for the weekend.

Nobody could access ATMs,
couldn't get money out.

You have a credit card or
a debit card and it gets

turned off because of
suspected fraud or you did

a charge in an unusual location.

Well guess what, the
credit card company holds

those private keys, they get
to make the choice, not you.

Bitcoin is very, very
different in this regard.

It is built on public
private key encryption.

And what that means is
that you send Bitcoins to

the public key and then in
order to send the Bitcoins

you have to be able to
sign with the private key

where the Bitcoins
currently reside.

And that literally is a number,

that private key is a number.

Bitcoin, nobody
gets to turn it off.

If you have the private key,

you get to access it and use it.

With your Bitcoin wallets
that there's associated

what are called private
keys, okay, and these are

literally what they sound like.

They are private keys that
can open and unlock your,

access to your funds.

But let's be clear, if you
lose any of your private keys

you lose access to your
funds, simple as that.

So we just bought
some Bitcoins

out of a local Bitcoin ATM.

And so what actually comes out

is what we call a cold wallet.

It's a little piece of
paper with two squares on it

or two things that look
like Roche inkblot tests

and a bunch of alpha
numerics underneath each.

Now the top is the public
key which is what people

would use to send
Bitcoins to this address.

And the bottom one is the
private key which is what

you would use to scan
in order to retrieve

Bitcoins from this address.

Now it's very important to
note that, that private key

is something that you
really shouldn't be showing

around everywhere because
whoever scans this first

will be able to take the
Bitcoins off this address.

Also if you were to happen
to lose this piece of paper,

then you've actually
essentially lost your Bitcoins

because nobody else has a
copy of the private key.

Right now there actually
is some Bitcoins on this

address so if you're seeing
this for the first time,

you may be able to
scan this off yourself

and take the Bitcoins
for yourself.

So here is a Satori coin.

There is a value of
0.001 Bitcoin inside.

In today's exchange rate

that would mean about 45 cents.

So it's very minimal amount
but it is true Bitcoin inside.

Now how to redeem the
value out of this token,

one would have to peel
off the hologram sticker

in the back, here we go,

and then a QR code
would be exposed

and this QR code is the
private key information

which is essentially
like a password.

And with this private key

and only with this private key

one can redeem, you
can import that value

to your Bitcoin wallet.

Anything that's physical
has a very strong sense

of authority or authenticity
and to make the barrier

to entry to Bitcoin as low
as possible I think everyone

working on the project felt
it was really important

that someone could have
a part of Bitcoin that

they can hold in their
hands that's portable

and doesn't cost very
must to get started.

It's kind of a low
commitment object.

Because Bitcoin
is built on public private

key encryption the entire work
flow for sending payments,

particularly online, is
fundamentally different

from that of credit cards.

Credit cards were
never built to be used

on the internet in
the first place.

I mean when credit cards were
made there was no internet.

So the pull system is that
you've given the authorization

to the merchant or the
credit card issuer to pull

from your bank account
whenever it is that they feel

that they have a right to do so.

With a credit card, whenever
you want to initiate

a transaction, you are
effectively giving the keys

to the merchant and
you give your keys

to every merchant you deal with.

So every time you make a
transaction, for example,

online or so, you're taking a
risk because you're entrusting

the merchant with this
very personal information

which they could then take to
initiate transactions as well

if they wanted to.

Whereas Bitcoins it's a
completely different model where

the control is more weighted
towards the consumer,

the consumer then pushes
their funds to you.

And then if you're doing
an internet service, right,

you could broadcast
a Bitcoin address

and anyone in the world
could send Bitcoin to you.

If you were a band, a musical
band, and you're performing

out in the concert, and your
concert was being broadcast

around the world, if you
put up on the stage a sign

that had a Bitcoin address,
well you could be funded

by anyone who's watching
that broadcast anytime

they watched it from
that point onward.

Bitcoin
payments are a push system,

meaning that the funds are
pushed from sender to receiver.

This makes for a faster and
cheaper system than traditional

pull systems like credit
card transactions.

This in turn also means
that Bitcoin transactions

are final and
cannot be reversed.

Credit cards
actually has about

a six month settlement time.

Even though the transaction
looks like it went through,

the person can then call back
and say this was a fraudulent

transaction and then the credit
card will take that money

away from the merchant in
some cases, in some cases

the credit card will eat the
cost and that's a charge back.

Now we pay for this, this
is the three percent fee.

Merchants usually pay
this three percent

in order to accept credit cards.

So Bitcoin transactions
don't have charge backs.

I think of it as a good thing.

As much as people like
to say how great it is

to dispute things, it
very, very rarely happens.

Almost never do you order
something from a legitimate

company and you are not
satisfied and then the company

did not solve your problem.

Most of the time this
situation happens is when

your credit card
is actually stolen.

And your credit card
can always be stolen.

Everyone's credit card
is all over the internet

is just luck or bad luck
if your credit card happens

to be used in a
fraudulent transaction.

We have some businesses
accepting Bitcoin,

mostly restaurants for example.

We have some restaurants
here set up in Acapulco.

For merchants when they
accept Bitcoin its for them

to have another option,
an innovative option,

and for them they have
a lot of advantages.

We don't charge what the
credit card fees charge

every time they slide the
card, three, four, five,

even 10 per cent depending
on the credit card.

We don't charge anything.

We don't have a minimal fee.

You can pay 10 pesos, 50
pesos, we don't have a minimum.

With Bitcoin
payments lowering the cost

of doing business and
eliminating the possibility of

fraudulent transactions,

companies ranging
from mum and pop

stores to multinational
corporations have started

to embrace this new
way to transfer value.

The first large publicly
traded company to accept Bitcoin

is Overstock and they now ship
goods to over 200 countries.

Last I checked, Amazon only
ships to about 50, 60 countries.

So they're ceding entire
markets with entire populations

in the billions, not even
fighting for that market share.

Additionally if Amazon accepted
Bitcoin, there would be

no fraud, there would
be no charge backs,

so it would lower their cost.

It would greatly increase
Amazon's profit margins

to accept Bitcoin.

Bitcoin allows
merchants to accept payments

for their products and
services seamlessly.

And although it's becoming
a great tool for merchants

to offer their products to
previously untapped markets,

it's the people in these
developing countries

who will benefit the most.

Bitcoin is the easiest,
safest, fastest, best option

for people that don't have
bank accounts or that don't

have ID's or they don't have
anything but a smart phone.

There's lots and lots of
people in the world that,

that's the position
that they're in.

And Bitcoin is this fantastic
solution and opportunity

for them to participate
in the world's economy

without having to deal
with banks and having to

jump through all these hoops.

They just simply install an
app and now they're a part

of the world's economy.

Something like 33 per cent of
the credit card transactions

coming out of Africa
are fraudulent.

So nobody wants to take
business from Africa.

It's just too risky.

With Bitcoin you know the funds
are good so as a merchant,

yeah, pay with Bitcoin,
I'll sell anything you want,

you know, that's
legal to Africa.

Then they're able to start
having property rights.

And property rights is
really want's going to help

lift them up out of poverty.

So Bitcoin does get
into this niche of

the under serviced people
in the banking industry.

So a lot of third
world countries,

they may not have access

to bank accounts, they
might not even have ID's

to open a bank account, but
if they have cell phones

and if they have access to
the internet, they can now

have the equivalent of a
bank on their cell phone.

According to the
latest World Bank figures,

there are approximately
two billion unbanked people

throughout the developing world.

The adoption and use of
Bitcoin in these countries

could transform this human
rights issue and allow

the unbanked
population of the world

to participate in
the global economy.

For the first time in the
entire history of the world

anyone can now send or
receive any amount of money

with anyone else, anywhere,
instantly, basically for free,

and it's impossible for
anyone, including governments,

to stop them from doing that.

And as much as I love
gold, gold can't do that.

Think about that.

Here, anybody in this room
you can now send and receive

any amount of money with
anyone, anywhere in the world,

right now, and there's nothing

that anybody can
do to stop that.

That was not possible before
the invention of Bitcoin

and that is a fundamentally
world changing technology

for every single human
being on the planet.

Wikileaks was able to
find funding through Bitcoin

and this was in the midst
of a financial blockade

that Wikileaks was facing.

At the time the US had
ordered Visa, I think it was

Mastercard as well, Bank
of America, to blockade

any donations to Wikileaks.

Say what you will about
Wikileaks, not necessarily

that I condone everything
they do, but I do think

it is very important for
freedom in the world for people

to have uncensorable
ability to donate money

to whatever political
causes that they want to.

And so I thought that was
extremely powerful for Wikileaks

to be able to defy
the US in that sense.

Because Bitcoin
puts the private keys

of wealth in the hands of
the user, it can be used

to support activist causes.

But Bitcoin can also be used
for a night out on the town.

My name is Ken Shishido,
I am co-organizer for

Tokyo Bitcoin Meetup Group.

We have this special event
tonight having burlesque dancers

receiving Bitcoin tips.

The reason why I do this is
that sometimes we want to

make our meetup interesting
instead of talking about

really, really technical
stuff or political stuff.

So this is one of the event
we want to make a really fun

and see what can be
done using Bitcoin.

Currently if you're
living in most countries,

buying things is not a problem.

You have credit cards,
you can still use cash,

and to me that is not
the true use of Bitcoin.

The true use of Bitcoin is to
give you financial privacy,

which I find
extremely important.

During the global
financial crisis as cracks

in the financial system spread,
institutions once thought

to be invincible were
shown to be vulnerable.

As we now know, governments
around the world were forced

to bail out financial
institutions.

A bailout is when government
takes tax payer money

and gives it to an irresponsible
financial institution

to bailout their mistakes.

A bail in is different
in that laws are written

which permit financial
institutions to take funds

directly from customer accounts
to shore up their losses.

Such a thing occurred
in Cyprus in 2013.

Well I started learning
about Bitcoin back in 2013

especially during the
Cypress event when banks were

shut down and money was
confiscated from people.

I remember telling my
co-workers, some of the PHD's,

the quants, this is really
bad, this is actually gonna

probably start happening in
many other western countries.

And they were all
laughing at me saying,

no it's just Cyprus
it'll never happen here.

And that's when I knew
someone must have come up

with a way to get
around this problem.

When a depositor deposits
dollars or Euros into the bank,

title to the dollars or
Euros transfers to the bank

and those depositors become
unsecured creditors of the bank.

If the banks screw up for
whatever reason, there's now

been legislation passed
in many of the countries

where they can be bailed in,
meaning that their deposits

can be turned into
shares of the bank.

Jeff Berwick
is an entrepreneur,

financial commentator,
and podcast host.

Having founded Stockhouse.com,
Canada's largest financial

news website, Jeff's
analysis, writings, and videos

have been viewed by millions
of people around the world.

It's difficult to say
exactly what's gonna happen

in the future,

but it's definitely going
to keep happening.

I said after Cyprus it's
gonna in Greece and then they

shut down the banks
in Greece for months.

And of the interest to
people who live in Europe is

on January first of this
year, they passed a European

bank bail in legislation.

So that should be a huge
wakeup call to people

that they're doing that.

So in Cyprus they didn't
actually pass it before.

So in Cyprus they closed
the banks then they came up

with some legislation so
the banks could just take

their customers
money to keep afloat.

So they didn't even
have that legislation

and they did that in Cyprus.

Now they already
have it in place

so they know what's coming.

I see Bitcoin as a way to

protect and hide your assets

and we're not saying this
is bad, I'm not saying that

only criminals hide
their assets, no.

People that have worked
hard and they've paid taxes

and they've done everything
and like what happened

in Greece and Cyprus where
money and bank accounts

was just confiscated.

So if the next time the
banking system gets in trouble,

it could be users accounts
that are raided to help

fund the banking system.

We're talking people
with significant money,

100,000, 200,000,
but it's legal money,

they've worked hard for it.

Some economists
believe that the global

financial crisis of the last
decade was just a precursor

to a much larger calamity.

If this is the case, how will
governments react in response

to the next failure of
our financial system.

Unlike the current banking
system, Bitcoin allows

individuals to hold the
private keys to their wealth.

However, this also comes
with the added responsibility

of securing the Bitcoins.

With Bitcoin you're
in 100 per cent complete control

of your own money, but that
also means you're 100 per cent

responsible for what
happens to your own money.

So it's your job to make sure
you keep your Bitcoins safe.

People are used to
things like credit cards

and bank accounts and
Paypal and if your

credit card gets stolen, you
just call the credit card

company and they cancel it
and that's the end of it.

If your Bitcoins get stolen,
there's nobody that you

can call to ask for help.

But the other side of the
coin there is that there's

nobody that you have to
call to ask for permission

to use your Bitcoins however
you want, so it cuts both ways.

Mt. Gox, the Tokyo
based Bitcoin exchange

has filed for
bankruptcy protection.

The announcement comes
days after the exchange

announced that as much
as 450 million dollars

of the virtual currency
had gone missing.

CEO Mark Karpeles
apologized and bowed deeply

on Japanese television.

It remains unclear if the
missing Bitcoins were stolen,

voided by technological
flaws, or both.

So actually this is
the old Mt. Gox building.

Mt. Gox was the biggest Bitcoin
exchange that ever existed.

I think at some
point they were doing

over 100 million dollars
a day worth of volume.

And they collapsed

in quite a spectacular
fashion in 2014.

I think the size of
the losses mounted

to over 450 million dollars.

They claim to have lost
850,000 Bitcoins of which

200,000 were found afterwards
in some old wallet.

People were putting money in

and essentially giving
them their Bitcoins.

Giving them control
of the private keys

and the irony is that
exact centralization risk

is what Bitcoin is
supposed to free us from.

And Mt. Gox just took all
of the decentralized nature

of Bitcoin and put it into
one company with a lot

of peoples money and they on
top of that, put the control

of that company's
finances under one person

who has the keys to the kingdom.

We've probably seen over
the last two or three years,

by my count somewhere between
half a dozen to upwards

of 10 different major
hacks of companies

that are involved in Bitcoin.

And one thing you have to
understand is that Bitcoin

is fundamentally different
from securing an asset

that's held within the
regular financial space.

With Bitcoin if you ever get
access to the private key

to someone's wallet, you
can initiate a transaction

outside of the infrastructure
of that company

without their knowledge.

That's unlike anything
that exists currently

in the financial space,
where if you want to

take money out of that target,

you have to have infiltrated
their infrastructure.

I think it's part of the
mentality where people are

trained not to trust themselves
with their own money and so

everybody puts their money
in a bank for safe keeping.

And so that sort of mentality
where you put your money

in some pooled company whose
sole purpose is to safeguard it

that is a really hard
stigma to break, to change.

And I think this is the thing
that's the most challenging

about Bitcoin is that
it challenges people

to question that stigma.

It challenges people to
take control of your own

money and value and to
safeguard it yourself.

The collapse of
the Mt. Box Bitcoin exchange

in 2014 caused much confusion
and scepticism about

the security of Bitcoin.

However, years after the
collapse of the once largest

Bitcoin exchange, Bitcoin
is now on the radar of many

institutions within
the financial industry.

The big question, the
conversation you would hear

is that the question was
whether blotching technology

would impact the
financial industry.

And now if you go to the
trade shows and you listen to

the media, the question
is not whether,

the question is how blotching
technology will impact

and transform the
financial industry.

It's now a foregone conclusion
that blotching technology

will impact the financial
industry in a major way.

So that's where we are now.

But we weren't always there.

If you look just three
years ago, two years ago,

the attitude was that Bitcoin
was almost a laughable

concept and it was a
non-sustainable system

and it couldn't be applied
in the financial space.

This Bitcoin,
while it looks great,

it's a nice piece of
collection, you know,.

It's better than yen or a penny.

Some of the areas
where Bitcoin has been

most popular so far
is China which has

quite a high level
of capitol controls.

Other countries like
China, Argentina, Iran,

this is where Bitcoins really
caught on to a lot of people

because you just simply,
it's not easy to transfer

money in or out of the
country without going through

regulatory problems or
having to know someone

in the government,
things like that.

So, definitely that is
a huge boost to Bitcoin.

The advantages
of Bitcoin continue

to increase its popularity
around the world.

Sometimes in the most
unlikely of places.

My name is David
Hyett and I operate

the Phoenix Rising
Caf� in Nimbin.

This is where our Bitcoin
machine is located

right next to the
traditional ATM machine,

so the customers have a
choice of using either.

I saw that the current
banking system was rather

restrictive and the
independence of people running

their own banking systems
really appealed to me.

And the fact also that it
was digital and we're living

in a digital age, I just
knew that it was something

that would have to get
traction over time.

Bitcoin is definitely
the largest innovation

in monetary science since
Isaac Newtons gold standard.

Going to completely revolution
how all of our assets

are held so it's going to
disrupt the law, gonna disrupt

accounting, gonna disrupt
our finance industry,

gonna disrupt so much.

It will also

rapidly decentralize
the capital.

No longer will

millions of people
accumulate all of their

capital into one big pile
that then gets allocated by

a senior vice president
of Merrill Lynch

or Bank of America.

It'll be millions of
people that you have to go

and entice out of their
capitol to go fight a war

in Afghanistan or Iraq.

Once you decentralize
all of those private keys

it becomes much more
difficult to get people to pay

for a lot of these goods and
services that they otherwise

wouldn't necessarily pay for.

I'll just scan it and now
I have your Bitcoin address

in my wallet right here, I'll
go ahead and enter one dollar

and we'll hit send.

I am sending the transaction.

Sent and if you...

There you go, you
heard the noise.

Before Bitcoin I was
basically retired, I was just

hanging out, enjoying my life,
practising jujitsu everyday,

and it was really fun but wasn't
really gonna make the world

that much of a better
place if at all.

And then I discovered Bitcoin
and I looked around the world

and I saw all these wars
being fought and central banks

debasing the currency and
basically preventing the world

from being as good of a place
as it potentially could be.

And I saw Bitcoin and I saw
this as a tool to strip away

all of their power to do that.

Most people aren't interested
in paying to kill people

they've never met
in other countries.

Most people are willing to
pay for roads and schools

and hospitals, so if the
governments say we need money

for roads and schools and
hospitals, I think people

would probably give them
a good chunk of that.

If governments say we need
money to go kill people

in other countries that
you've never been to in your

entire life and you're
probably never gonna go to

in your entire life,
people are gonna say,

no I don't wanna pay for that.

But if you're using bank
accounts and dollars and Euros,

governments can seize
all the money out of your

bank account any time.

They can print as many new
dollars or Euros as they want

to pay for these
things at any time.

If the world's using Bitcoin,
it takes away those tools

from government and I
think that makes the world

a much, much better place.

For the
first time in history,

Bitcoin now provides
the entire world

with a completely
decentralized payment system.

One where each individual
holds the ownership and control

of their own financial wealth.

One where all users can
transfer value and interact

freely amongst each
other instantly.

What could the future
of our world look like

with such a revolutionary tool?

The possibilities
could be truly magical.

Bitcoin is magic
internet money.

Bitcoin allows you to send
and receive money with anyone,

anywhere in the world
just like magic.

I'm at a loss for words
because it's that exciting

and that world changing.

With Bitcoin you can pull
out your iPod or your iPhone

or your tablet or whatever,
install an app and in less

than 30 seconds you have the
ability to send and receive

money with anyone, anywhere in
the world basically for free.

And you can be 10 years old
and do that or you can be

100 years old and do that,

and you can do that
in any country.

That's magic.

Subrip: Pix