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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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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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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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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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who built it in order to buy his beer

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with his phone instead of his computer.

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(speaking in foreign language)

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- [Narrator] Credit cards
are an old technology,

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and actually pretty complex.

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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.

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Well, actually, I need
to buy my German crew

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some Gluwein

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and explain why they won't get paid

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until after Christmas.

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You see, transferring
money from Australia,

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where I live,

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to Germany can take several days,

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and it will cost $30 plus exchange fees

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just for updating numbers
in digital ledgers.

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After all, it's just moving data.

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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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after 5:00 p.m., or on a weekend?

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That doesn't make any sense.

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So what if those slow
and expensive middlemen

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with their multiple ledgers

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could be replaced with a giant database

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synchronised over the Internet?

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That's the big idea behind Bitcoin.

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And it's run by a
decentralised global network

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of powerful mining computers
and regular laptops.

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Here's how it works.

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When I pay my cameraman,

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what's really happening
is that I use my key

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to open my wallet,

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and then instruct the network

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to send Bitcoins to his address.

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Most Bitcoin apps use QR codes

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to identify and address.

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You scan it,

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then swipe to use your key,

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and approve the transaction.

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- [Narrator] This information is shared

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throughout the global
network within seconds.

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Every 10 minutes or so,

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one miner using a
tremendous amount of energy

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beats all the others in a contest

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to solve a very difficult math problem.

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That miner is authorised

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to arrange the most recent transactions

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into a structured block,

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and is rewarded in Bitcoins for this work.

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All the data contained inside each block

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is represented by a check sum.

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The miner now adds the new block

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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 ♪