bitcoin

Evolution of Bitcoin - Full Documentary 2017 [HD] #Advexon

[Music]

I really like it down here I live pretty

literally right by the World Trade

Center I walk home I live above it

actually my ankle bracelet

held the government where I am every

second of the day any time of the day

but it's gonna come off when they go to

prison I think and I don't think I'm

wearing some prison so that's what

that's what the plan is for that

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closing numbers on the markets today at

one point the market fell as if down a

well it was a historic day with Wall

Street shaken to it's very foundation

and even the health of the most trusted

firms are now being called into question

we have former secretaries of Treasury

who go from government to Wall Street

pocketing hundreds of millions of

dollars in 2008 I came somewhat obsessed

with the role that money itself played

in the crisis and the role that

governments and banks played in money

and why was it that our money was

controlled by central banks if something

new happens is the government likely to

give it a nod or at least ignore it for

a while there's the government likely to

come down and try to crush it because

they're afraid of anything new and

different

this is a monetary revolution Bitcoin is

V honest currency

[Music]

okay this past week we've been talking

about money I'm gonna ask everybody what

you think money is can give me some

answers now money is like paper and you

can like buy stuff with it so you have

to have like full quarters for you don't

you need money to buy your house like

food water oxygen oxygen money is

basically just an accounting system it

is a way of recording who owns what who

has what who owes what to whom that is

all money really is and you needed

somebody who could stand as the central

issuer somebody who was the trusted

third party someone who would guarantee

that the money was real and for hundreds

of years now we have had governments

issue money again money is just an

accounting system that's what bitcoin is

bitcoin is really just an accounting

system it is a way of recording

transactions recording value and it does

it digitally so you and I can send it to

each other directly and everything is

recorded in the open ledger by

monitoring and updating that ledger in a

collective consensus based system you do

away with the need for somebody in the

middle having to be that sort of

repository of all the information and

that's what gets away from the fees the

inefficiencies and ultimately the

potential for corruption and risks that

come with centralizing it from a

in that way what it does is it takes

that that trusted third party function

and it automates it it puts it into an

open ledger that is put online that is

there for anybody to see so that every

Bitcoin is accounted for so that you

know that you're not getting a

counterfeit Bitcoin it's kind of

remarkable that this idea of Bitcoin was

launched just a few weeks after Lehman

Brothers went bankrupt and the whole

system nearly collapsed and the problems

that cropped up in the crisis were very

much a part of the writings of Satoshi

Nakamoto

I think what the crisis showed is that

the existing system had some major flaws

it wasn't working and people were hungry

for some sort of alternative

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I discovered bit Quinn's power when I

understood for the first time that it

was not controlled by a central company

or a central person because I knew that

man it couldn't be shut down and if you

can't get shut down all it needs is to

do something useful and it will become

more and more adopted and as the value

grows people find more and more uses for

it

the beauty of Bitcoin is it's easily

transferable it's anonymous and by 21:40

there's gonna be 21 million and that's

the cap

there's only X amount of gold there's

only X amount of Bitcoin

before if you wanted to send something

of value across the internet you had to

get somebody else involved you had to

have a credit card company or PayPal or

maybe a bank involved in the transaction

the promise of Bitcoin is that directly

sending this currency to another person

and then the Bitcoin network performs

the function that normally PayPal or

Bank or your credit card company would

perform Bitcoin really puts to control

back in the hands of everybody everybody

who's participating the Bitcoin system

is controlling how it works if you want

to look for the genesis of

cryptocurrency it was a cyberpunk

movement you know growing out of a kind

of a love of the Internet and its

possibilities the discovery of

cryptography and an imagining that you

could actually give birth to a new world

really out of the internet that a world

that lives outside of the nation-state

and outside the structures of power and

the hierarchies that are associated with

that these people had talked about the

need and the possibility for a digital

currency that was anonymous or could be

anonymous

using cryptography the cypherpunks that

emerged in the early 90s were hyper

concerned about privacy about personal

liberty and a lot of people had come up

with their own systems some of them came

very close to happening the one that

probably came the closest was digit cash

from David Chou

privacy of payments is actually

essential for democracy the reason is

not because you need to be able to make

private payments in or

to express yourself but rather that in

order to inform yourself you may need to

purchase information and that's the

thing that allows you to have opinions

worth expressing although I wouldn't say

David Chum was a cyberpunk

he definitely inspired the cyberpunk

movement it's as if the cypherpunks kind

of came upon David Toms tools like the

technology of some alien species and

they only took the weapons they were

most interested and the ones that could

be used disempower the government and

empower individuals the break between

him and the cypherpunks came when he

realized he would need existing

institutions to help him with it so he

started talking to governments he

started talking to banks he was very

close to having this thing happen in the

late 90s and nobody was really prepared

for this outside of the cyberpunk

movement people seemed like had almost

sort of given up on the project other

than a few experiments here and there by

Hal Finney nick szabo the conversation

around this really died down and then

all of a sudden it came back to life

after the financial crisis and you had

people going back to those experiments

in the 1990s and looking at new ways of

putting those ideas together nick szabo

in 2006 had just finished up a midlife

stint at Law School and if you look at

Nick's writing around the financial

crisis that it really revived his

interest in these ideas that you know

he'd been working on in the 1990s with

privacy and contracts and the problems

of governments and other trusted third

parties and he brought Vic gold back

into the conversation

so how Finney came up with his own

system Adam back has Hashcash Wadeye has

been money Sabo has bit gold

so what's the tow she did in 2008 was

Satoshi took a lot of these ideas and

made them work and it created an

encryption based protocol it's not

really a currency utilizing a ledger

called the blockchain allowing for many

kinds of transactions to occur contracts

all kinds of things can be built into

the blockchain and it does this through

a system of consensus building where

multiple computers all participate in

the the management of the blockchain

ledger the kind of digital document if

you will that keeps track of all the

payments

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I understand it's something that is

instantaneous online and it go from one

country to the other and well I never

heard of it until yet she called me and

mentioned digital currency and I'm

thinking she must have been in the

battle this morning or something for

people who don't have bank accounts I

can't understand if you have one coin

it's let's say it's worth 150 dollars

what do you do give the number or

something to the save the grocery store

person and then they subtract it how do

you know how do you make change how do

you know what you have left or what you

spent you can have the money supply

controlled by a computer that's all

Bitcoin really is the key point here is

that this is a distributed ledger

there is no central server all the other

legends that we have all banking

Ledger's all company ledges they all sit

and reside inside that company which

means they have one point of attack they

can be hacked JP Morgan was was hacked

by a cyber thief's not so long ago Home

Depot target we've had all these

companies get hacked it's likely because

there's one central repository of

information the Bitcoin ledger resides

on you know thousands of computers you

can't hack that every single transaction

is recorded and once it is recorded in

the blockchain it is there it is

permanent it cannot be altered it cannot

be changed so that you can read it now

the identities of the people are

encrypted the wallets are encrypted so

you don't know who is spending the money

but you know that every single Bitcoin

out there has a history you know where

it's been you know the different

addresses it's gone between the most

important pieces of the Bitcoin

infrastructure are the miners these are

the computers that are tasked with

maintaining the ledger of the blockchain

to verify the information to update it

to make sure that the dis is trustworthy

so how do we incentivize them to do so

as they are going through the process of

confirming transactions they are

simultaneously

being subjected to a very very difficult

computing test the Bitcoin core protocol

is is forcing them to look for a number

all of these miners are ultimately

competing to be the one that receives

that payout every ten minutes but really

that's the secondary component they're

really being rewarded with Bitcoin but

what is the more important task and that

is the validation and verification of

transactions and the maintaining of the

ledger Bitcoin in being the first to

achieve this holy grail of decentralized

value exchange that transfers that

process of trust to a collective

agreement around a body of independent

computers who are compelled by an

incentive system to maintain that

consensus and affirm the information to

be correct is incredibly liberating

because it means that we can do it

without all these intermediaries in all

these different realms the most

important thing behind Bitcoin is not

the currency the key factor it is the

blockchain and nobody expected this you

know in 2008 you know very few people

cared about it it was just the computer

scientists and the sort of code geeks

that were really interested in

all my communication of the Satoshi was

ever by either the Bitcoin talk forums

which all of that communication is

public or private forum messages or

private emails Satoshi was always all

business it was just always about the

code my very first message sister Toshi

I asked him so you know is Satoshi your

real name what have you done before can

tell me a little bit about yourself and

he just ignored that completely but came

back and said you know I'm great to have

more experienced programmers helping out

with the project you know here's a

couple of problems that need to be

solved maybe it can help solve them

in 2011 I was into Bitcoin sort of just

as a hobby I didn't really know what to

do in it yet I was trying to meet

everyone I could figure out what

projects would be cool to work on

I met Roger Vere sort of in August of

that year and a few months later he

recommended to this guy Charlie Shrem

who started bitinstant that Charlie

should hire me it's the head of

marketing for bid instant Bitcoin is

cashed with wings it's the ability to be

able to take a local transaction and do

it globally and that's why bitcoin is

gonna overturn the financial

infrastructure bitcoin is like the

largest socio-economic experiment the

world has ever seen our conversations

would range from you know the mundane

and practical like how the hell are we

gonna get another bank account since our

current bank account is probably gonna

get shut down any day now two very

high-minded aspirational ones you know

like is this actually gonna change the

world in a good way

are we just a bunch of crazy people who

don't know what the hell we're talking

about or are we actually starting to

initiate an industry which in hindsight

will look obvious to everyone but you

know right now Charlie Shrem was at that

stage a fairly high-profile figure in

the Bitcoin community the vice-chairman

of the Bitcoin foundation and you know

one of these Bitcoin millionaires who'd

made a lot of money very quickly and

really played an important role in the

infrastructure of managing the movement

of funds around the system in that you

know early rudimentary phase 6:54 offer

in the new york cash market for Bitcoin

buyers right now will pay 632 dollars

cash on the spot right have you been

getting your Bitcoin sir

I got dollars if you want to go on down

to 40 broad right next door to the stock

exchange there to the New York Bitcoin

Center you can buy and sell all the time

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just one small table round and have

flowers like a flower arrangement or a

nice flower arrangement big twin flowers

cornflower Sakura flowers would be white

lily purple and orange which is right

here three colors we put it together the

first Bitcoin Center here in New York

City right next door the New York Stock

Exchange

bitcoin is a new space many of the rules

and regulations and haven't been imposed

yet but we will open one day soon after

the lawyers do their job a live digital

currency exchange what's happening here

is a fusion between Wall Street and

Bitcoin hopefully Satoshi seemed to

acknowledge that it would be hard for

Bitcoin to develop in any way in which

it wasn't interacting with the regular

economy of dollars and euros

the problem with exchanges is that they

took you back to this old world that

Bitcoin was really trying to get away

from as soon as you move back to an

exchange you're moving back to the world

in which some third party has all this

personal data on you has all of your

money has all the security

vulnerabilities and really has none of

those strengths that Bitcoin was

designed to provide

Genma Caleb created mouth [ __ ]

essentially on a lark one night because

he couldn't buy bitcoins as quickly as

he wanted to and interestingly he did it

by starting with a URL that he'd

previously used to run magic trading

site so you get an idea about where some

of these ideas are coming from and how

you know really kind of rudimentary some

of them would Jed essentially through

this site together and put it online

without too much thought it immediately

took off like much faster than I thought

it would and then I realized that in the

US there's all these regulations you

have to pull I with there's a there's a

lot of like legal risk around money

transmission dead essentially sold it to

the first person he found who was Mark

carp Ellis a French guy who was living

in Tokyo he really knew very little

about mark when he decided to sell it to

him and once he took it over

it began growing much more quickly than

Mark was expecting or was prepared for

he's still running it it's done

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there are 21 million bitcoins programmed

into the system that are going to be

released it's a set number but within

that every single Bitcoin can be divided

up into 100 million different pieces so

there's room for to expand as the use

expands especially in the emerging

markets in the developing world that is

really the most interesting place to see

where this thing goes

so in my pocket I have hundred trillion

is in Bob Way dollars from the Reserve

Bank of Zimbabwe just as a reminder of

you know what happens if our governments

screw up our money

you know Zimbabwe is a good example of a

government lost the trust of their

people and they lost the trust of their

people by printing too much money and

causing runaway hyperinflation so I

think you will see you know people in

other parts of the world who've

experienced hyperinflation who've

experienced bank failures I think those

will be the kind of people who are

looking for something something new

right they're willing to take the risk a

lot of us take the capacity to send

money to to others receive money store

money and do it electronically these

days for granted because we are amongst

the lucky 50 percent or so of the world

that have bank accounts but 2.5 billion

adults in the world do not have access

to bank accounts a technology like

Bitcoin cryptocurrency has the capacity

to to bring those people into the

financial system to give them this power

to effectively have what you could argue

is a bank in their cell phone a bank in

their pocket really could open up

commerce to a lot of people who are

currently excluded from it somebody who

is maybe working in one country and you

know they want to send money back home

and right now like Western Union is a

big way that people do remittances from

a Western Union perspective we serve

clients in many different locations

around the globe and and primarily for

remittances Western Union serves

typically an unbanked customer a

customer who is either a migrant worker

or a individual who doesn't feel

comfortable in the financial services

sector and

problem with remittances is they're

really expensive so if I'm sending $100

back home I may end up spending five or

ten dollars just on these to you know

get that money back to my family that's

a huge percentage if you're poor and

working

so since Bitcoin doesn't care about

borders I could just send Bitcoin

throughout the country and if if my

family and that other country has some

way of spending that Bitcoin or has some

way of transferring that Bitcoin into

the local currency and it's just quicker

and cheaper and more convenient and a

lot of people think that remittances

will be one of the really big first uses

for Bitcoin the one challenge there is

we deal with you know at our companies

750 transactions peak a second and those

happen instantly if you look at a

blockchain you have to wait for

verifications and if you do a recent

test it takes about 15 minutes for every

transaction to be validated by the

network that doesn't scale so it has its

challenges as well WikiLeaks which

solicits and publishes secrets and

suppressed material from whistleblowers

around the world is been under

cyberattack from governments that want

to shut it down PayPal is the latest

business to break ties with WikiLeaks

but the whistleblowing website dedicated

to publishing classified government

documents still continues to seek

funding while crossing out PayPal is one

method of payment in order to ensure our

future survival WikiLeaks is now forced

to temporarily suspend all publishing

operations in order to direct all our

resources into fighting the blockade and

raising funds the WikiLeaks scandals

seemed to provide an opportunity for

Bitcoin at the time the big banks and

credit cards stopped processing payments

for WikiLeaks and some people thought

that Bitcoin would provide a way to send

donations to WikiLeaks

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you could certainly see in the hubbub

around WikiLeaks that Satoshi was still

somebody who was very paranoid about the

government and the government coming in

and taking too close a look at the

Bitcoin project and you could also see

that Satoshi

I think realized at this point that

Bitcoin was still young software and the

kinks hadn't been worked out yet and I

think late 2010 he asked me it would be

okay if he put my email address on the

Bitcoin dot org homepage because he had

been the primary contact for people and

I said sure and he went in ahead and

changed the web page and but what he did

is he

he left his name there but he took away

his email address and so it was just me

and my email address who was suddenly

getting all of the attention and I think

that was the Toshi's way of kind of

saying you know you're the you're the

leader of the project now there was one

point to go an email where he told me

that he was gonna step away from the

project and do something else he never

told me what else he's gonna do or that

he is doing I had just been invited to

give a talk of the CIA and I told

Satoshi that I accepted the invitation

to go speak at the CIA after he sent

that email to Satoshi telling him that

he was planning on going to the CIA he

never heard from Satoshi again and that

was essentially the last time anybody

heard from Satoshi you very quickly get

caught up in the question of who is

Satoshi Nakamoto where did this come

from who is this person I mean this is

the 2000s information is out there

everything everyone knows everything

about everybody how can there possibly

be a person that nobody knows who this

guy is but there is a person and with at

least I think it's a person it might be

a group who nobody knows who this guy is

and he kind of appears out of nowhere in

2008 on these cryptography email lists

with this system called Bitcoin he's

very active in the early years there's a

lot of back and forth with him

communicating with people it seemed like

most people kind of wrote him off it's

kind of like

delusions of grandeur kinds of scheme

help any on the other hands seem to be

really interested right from the

beginning he was at crypto idealist like

he was not as kind of cynical as many of

the other cypher punks so he got really

into this he started talking to Satoshi

Nakamoto who he said seemed like some

young japanese-american coder how Finney

was the first guy to work with Nakamoto

he was a cryptographer soon as Nakamoto

released it he was one of the first

people to email him back and say hey

this is interesting I'd like to work

with you and in the first weeks of

Bitcoin he worked with him back and

forth setting up the system and Satoshi

Nakamoto ended up sending health any the

first ever Bitcoin transaction any

discussion of satoshis identity has to

go back to the fact that Bitcoin was

based on this small number of projects

back in the 1990s that only a handful of

people knew about like hash cash and bit

gold and be money and so you end up with

a pretty small group of people who would

have known about these projects people

thought Tom David Shan was in here

everybody in the cyberpunk mood at one

point another they've said well he must

have been Satoshi they've all come out

and denied it probably somebody who

started out in the 90s in California

with the cypherpunks somebody who was

very very good at cryptography who

understands encryption and has done a

wonderful job of just separating Bitcoin

from anything that can identify him I

think for bitcoins sake the continuing

anonymity of Satoshi has ended up being

a really good thing because the people

who have gotten involved in it have been

able to write their own ideas and dreams

on to this technology and there was

nobody there to say no that's not what I

meant

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and then the early early days the first

group was really just a bunch of more or

less tech minded of coders

then you had the libertarians come on

board who saw it through a political

lens I'm excited to be a little bit of a

part of it with allowing an accepting

Bitcoin and then you had these two

groups working together and they overlap

too and the timing was very good because

the existing system was in utter

disrepair it was like a match to a pile

of wood with gasoline pour on top of it

the whole thing kind of really goes

viral and takes off and then you have

the suits the VC money and it was very

small at first just a couple guys out in

Silicon Valley who ran into Bitcoin guys

at coffee houses and he started having

this meshing of conversations

once Silicon Valley gets on board that

whole dynamic starts to take off so now

you have the tech minded coders the

libertarians are counterculture people

the VC Silicon Valley and you have this

entire great mishmash of people coming

together you had a network effect the

more people that got involved

the stronger the network God and the

more it grew and it really started

growing on itself and in 2013 especially

you would literally see this thing

mushroom the thing was just growing

growing and growing and growing as more

and more people got involved

I think most Bitcoin companies at the

time knew that a big part of the market

for bitcoins was people buying drugs on

Silk Road who needed bitcoins to do that

the Big Bang moment for Bitcoin was the

sole credit what Ross Albrecht did by

creating the Silk Road was he took this

by no means common but usable crypto

currency called Bitcoin and he married

it with a streamlined workable user

interface that was a free market that

could sell anything what would happen if

people who are really free truly free to

trade what they wanted to Ross did have

an extremely radical libertarian

viewpoint and really wanted to

experiment with using technology to

create free markets for people what Ross

Albrecht did the combination of Tor and

Bitcoin that was the aha moment that

Ross must have had the Silk Road was

basically the fruition of all of the

cyberpunk dreams the crypto anarchists

utopia that they had imagined in the 90s

you know was real now this was a

perfectly in theory anonymous web site

with perfectly in theory anonymous money

used to buy any contraband imaginable

the Silk Road website is a particular

headache for authorities it's an

enormous online marketplace where people

sell drugs that are posted to customers

all over the world cyber investigators

you know there's a crime can kind of

trace you back because you have an IP

address it's like a telephone number so

if you call another computer that IP

address is trapped on tor that's taken

away because your information hops from

computer to computer to computers and

there's no way to trace you back to your

original one tor is an anonymous system

so if you use the tor browser which it

has a browser you can go to tor and

download their browser you can browse

with some degree of security so that's

great for plugging your banking

information into a site so you don't get

hacked the other component of Torah

which is has

uses is called tor hidden services tor

hidden services is actually to put it

simply a URL that doesn't have dot-com

on the end it has dot onion and that is

its own little space where you can

create websites and you could freely

transact without oversight or regulation

people put websites on there they are

outside of law enforcement view those

hackers for hire there was malware

there's credit-card dump services there

was a whole bunch of them

Christabel has ended up being in some

ways the most important FBI digital

crime investigator of the last few years

he was the one who took down anonymous

essentially so we decided to start

looking at some of the services on tour

and so probe being one of them other

cases they would hit tor and they would

kind of throw their hands in the air and

say it store that's not much we can do

about it I found it interesting to kind

of take a look at it and tackle it

but instant was basically born because

if you want to move your dollars into a

Bitcoin exchange it takes you know at

least three days and since the major

exchange in alkoxy was in tokyo it could

take a week or more so that's really

problematic and basically Charlie

figured out that if you just held a

balance of dollars at the exchange you

could go to him and say charlie I'll

give you $100 will you give me $100 of

credit at the exchange and you can

literally then have your dollars at the

exchange in ten seconds as opposed to a

week so that's hugely helpful especially

when Bitcoin is so volatile and you need

to know exactly what price you're gonna

get charlie was raising capital right as

sort of ie I joined during that process

he came across lots of interested

investors who were starting to get a

whiff that maybe this Bitcoin thing was

was cool we had an interesting debate

early on about do we invest in Bitcoin

or Bitcoin companies and we sort of

decided to do both more towards

investing and actually Bitcoin in the

asset in early days but also trying to

place a few bets in the ecosystem to

support the company's support the

entrepreneurs and see how that went a

few days after they first found out

about Bitcoin they were in the

bitinstant offices in New York meeting

with Eric and Charlie and Eric and

Charlie essentially talked them through

Bitcoin and answered all of their

questions and concerns

what made you invest in it instant there

are a lot of companies and exchanges and

websites with respect to Bitcoin

regulation is obviously a big question

what you do want is a company that sort

of takes that seriously and understands

that there's the technology element

there's building the company and then

there's also creating the company that

works with regulators and so that's been

instant it's not this sort of completely

underground thing I mean Charlie the CEO

happens to have been in the space for a

long time so he's sort of on the pulse

and the cutting edge you know you come

out and you say like we want this

Bitcoin thing to overturn everything but

at the same time we have to be compliant

and we have to know you have to know

your customer you have to know every

single customer no matter

what even if they're transferring a

dollar or a thousand or how reasonable

is that the term money laundering was

invented by banks and knowing your

customer shouldn't be this complicated

expensive thing and you should have

treat everyone like a criminal the

beginning they really wanted us involved

people were really friendly because it

benefits you to onboard more people in

so the coins always been this very

friendly community and it's also in some

ways it's it's self-serving that way but

we were there for the right reasons at

the time that instant was the big

company other than Mount goths it was

the way that most Americans were able to

buy bitcoins here it is

so bitinstant was located right there I

think it's the one that now says bling

it was a whirlwind six months going from

total obscurity with with no money to

becoming you know one of the hot

startups of Bitcoin but almost as soon

as the twins made their investment in

the company

it began falling apart the twins had a

much more practical approach to Bitcoin

and fit instant they wanted to see the

company making money and making as much

money as it could as quickly as it could

they saw early on that it would be

regulated that it wasn't going to be

this big and have no-one be interested

in regulating it

so they feared that all kinds of

regulators would come in at all

different angles and tie the thing up in

a complete morass where nothing would

ever get done so they wanted to help

drive the regulation so that whatever

regulation would be there would work and

would not end up being complete dead end

for Bitcoin

that strategy is smarter from purely a

business perspective but I'm not in this

purely from a business perspective I am

in this for business and because I'm

trying to change the world and make it

better and building Bitcoin companies

and begging for regulation that matches

exactly the banking regulation that has

caused so many problems I feel like it's

counterproductive for the most part

bitinstant

was actually taking steps to make sure

that people weren't using the service

for illegal purposes but Charlie made

the mistake in dealing with BTC king of

acknowledging that he knew what BTC King

was doing and that he was acquiring

bitcoins to sell them to Silk Road

customers

in this case Charlie worked with the guy

and wrote emails that essentially

acknowledged he knew what this guy was

up to

[Music]

that stunning arrest of the drug kingpin

who goes by the name Dread Pirate

Roberts peers have cornered the internet

drug market his real name is Ross

Ulbricht and his website Silk Road is

packed with products like cocaine and

heroin the payment system is all through

bitcoins which is basically digital

currency not backed up by any

international banks not backed up by any

US banks but simply based on the

confidence of the users who exchange

these bitcoins computer-to-computer

there's a reason why the case was tried

in New York in this in a Southern

District and largely that was because of

Bitcoin Ross was caught in San Francisco

the Silk Road servers were out of the

country so why was Ross's case tried in

the Southern District of New York where

most of the financial regulations cases

are dealt with where the District of

Attorney Preet Bharara has been all over

Bitcoin where a Charles Schumer the

senator has been all over Bitcoin Ross

Ulbricht case is a Bitcoin case there's

absolutely no denying it the the level

of threat that the Silk Road posed to

the marketplace to Wall Street whether

it's a perceived threat or an actual

threat was humongous and the idea that

somebody could create a marketplace

where you could freely transact without

oversight or regulation had to be dealt

a massive and public blow it clean kind

of monetized that's anonymous part of

the internet and it made it possible to

trade in things that the federal

government doesn't want you to trade in

law enforcement moves slowly but it's

it's a big heavy wheel that grinds

finally so you know someone was running

a hidden service and now they're in

prison for life

they were playing hardball it was very

evident that their intention as the

judge herself said in her sentencing was

to make an example out of Ross was to

say to all of you people using Bitcoin

to all of you people who want to tangle

with unregulated marketplaces and

technologies and open source

you know crypto currencies we will throw

the book in its entirety at you if you

do this

we seized a whole bunch of bitcoins and

in order to sell those bitcoins off or

go to an exchange you have to fit within

federal law on state law there's not

really an exchanger that could handle

that we've met those regulations at the

current time so it had to be handled

through auction

[Music]

you know anything about bitcoins there's

an article Wall Street Journal today

bitcoins really digital currency you see

that Oh digital currencies will disrupt

global finance transform the way we pay

for things and just maybe make the world

a fairer place what I read on the

computer they have had some problems

reason is because you can't track it

well I think I don't like this idea at

all when we saw the Silk Road shut down

a lot of people said you know bitcoins

nothing but illegal drugs on the

Internet that's what it is they would

point at the Silk Road and say look here

at all this stuff that's happening here

and I think when you saw the Silk Road

shut down and Bitcoin transaction volume

take a tiny little dip and then keep

going up you know I think that was that

was a great event to point at and say

you know it it really wasn't about that

it really isn't about that you know it's

a tiny little part of the economy

[Music]

and recently I heard a scenario after

the FBI had seized a bunch of big coins

due to new legal transactions now

they're gonna be auctioning them off

like there were they privately offer you

know from some drug dealer so that in a

way legitimizes the used to them as a

party

looks like it's the first live

Bitcoin exchange on Wall Street

bookseller

- all right now we are looking at the

open interest at the floor of the

Bitcoin exchange there's different

exchanges that are online that will

present the bid and ask but there's no

true open outcry exchange buyers and

sellers coming together in an open

Collyer transparent it's the honest way

here's my transaction probably the first

two transactions of the day it's really

not about the money it's about being

involved I think there's a lot more

people are gonna follow me

[Music]

Charlie Shrem 24 years old arrested

today and charged with engaging in

money-laundering Shrem enabled people to

transfer money from Bitcoin to cash via

his company called bit instant now the

other point that the DEA is making is

that shrimp bought drugs online at Silk

Road and that he knew Silk Road was a

trafficking web site and we know the

Winklevoss twins who obviously were

featured in the movie about Facebook

they're actually investors in Schramm's

company yeah you know a lot of people

are very excited by this idea they like

the idea that you can have a currency

that is not tied to any kind of central

bank but at the same time I mean think

about it if you're in the federal

government you don't like the idea that

people could effectively use another

form of cash to buy things that they

shouldn't be buying online with me it

wasn't all my customers it was one

customer I don't forgot a hundred

thousand customers this was one customer

oneness thing and I made that case at my

sentencing I said Your Honor this was

one customer it happened that literally

I was coming home from Amsterdam with my

sweatshirt I was still stoned I don't

know going on Charlie did not know when

to shut up and that ended up getting him

in trouble and probably led to the end

of his company but they got me into the

Patriot Act and it's money laundering

because I knew that the money I was

taking was eventually possibly going to

be used for drug trafficking now drug

trafficking is not buying drugs it's

selling drugs

I don't have the drug seller I help the

guy buy drugs but I never went to trial

because and I pled guilty because who

wins at trial you know like this guy's

still abroad he's in to go to life and

in trial all I need to get was a lady

who son died from a cocaine overdose and

I would have the jury would have

convicted me right there so essentially

Charlie was selling bitcoins to a guy

who was selling bitcoins to people who

were putting drugs into their own bodies

and for this Charlie was charged with

crimes that could have put him in jail

for 20 years that's what the prosecutors

were shooting for we have banks that

have ATMs on every street corner in

America and

those banks know very well that that

cash is gonna use the drugs and yet

that's fine they're allowed to do that

no one gets in trouble but Charlie sells

Bitcoin to a guy who sells Bitcoin to

someone who uses drugs and he goes to

jail he was an entrepreneur that started

building this industry built services

that people found useful when bankers

almost destroyed the world economy and

none of them got in trouble

whatsoever and here we have this 23 year

old kid he goes to jail because he

started building an alternative

[Music]

over the last six months our agency has

been conducting an extensive inquiry

into virtual currency the information

we're going to gather in this

fact-finding effort will allow us to put

forward during the course of 2014 a

proposed regulatory framework for

virtual currency firms operating in New

York yesterday we had serious criminal

conduct come to light involving virtual

currency as a vehicle for money

laundering drug trafficking and other

major felonies right now the regulation

of virtual currency industry is still

akin to a virtual Wild West that's why

we're evaluating whether our agency

should issue a so-called bit license

specifically tailored to virtual

currencies I think people who imagine a

very powerful utility like that coin

that would somehow escape regulation

entirely are either naive or extreme

optimist

Bitcoin is a battle of ideas and it

forces the issue of whether people

should be as free in their handling of

money as they are in their handling of

speech or religion or relationships with

each other if you want to have this

thing go mainstream you're going to have

to have the regulator's the law makers

weigh in on it and one of the first ones

who really took an interest was Benjamin

Loski very important regulator in the

financial world and in January 2014

holds these public hearings because he

wants to come up with a license for

Bitcoin companies we believe that

putting in place appropriate regulatory

safeguards for virtual currencies will

ultimately be beneficial to the long

term strength of the industry itself

Loski was essentially given the

opportunity to write the rules for this

whole new industry from scratch the

first question is the obvious one that's

on everyone's mind it's sort of

unexpected yesterday but with the

arrests we saw obviously that's put a

bit of a cloud hanging over the industry

right now and so how do each of you

react to

what we saw yesterday what it means for

Bitcoin or virtual currency and its

future I think it further supports that

bad guys are gonna do bad things and

they're gonna use whatever technology is

available to them but I view it as if

the allegations are true and they're

convicted the system works are people

still doing bad things with Bitcoin sure

is the majority of the Bitcoin activity

vais not a chance so I think the issue

you raise is one that people like to

write about the media likes to write

about makes great headlines you get a

lot of clicks you can sell a lot of ads

but I think it's in in the rearview

mirror there are some people in the

Bitcoin community from the libertarian

side of things that want government to

just leave it alone would you say

regulation is both inevitable but more

importantly actually ultimately going to

be crucial for the survival of virtual

currency it sounds like a terrible idea

to me just understand what we're trying

to do with Bitcoin we're trying to

create a world where transactions can

move globally for free okay and making

these companies hire you know some

outsource compliance firm is is a bad

idea it'd be great in any industry if

you could just open the door and let

folks run out and give a shot we may

choose not to invest in a company if

they can't get licensed by you

if the choice ultimately is between

preventing money laundering on the one

hand and I probably even shouldn't use

the word money laundering because it's

too nice a word frankly money laundering

is the facilitation of all kinds of

horrific crimes that I think everyone in

this room never wants to see happen acts

of terrorism funding rogue nations etc

all take place through massive money

laundering now the choice for the

regulator is permit money laundering on

the one hand or permit innovation on the

other we're always going to choose

squelching the money laundering first I

agree that that I don't think anybody

wants money laundering

when we got in first saw Bitcoin you

know about a year and a half and was two

years ago I don't think anybody would

deny that it was a bit of a while out

west because there was no regulation

there was no framework to evaluate the

asset evaluate companies determine who

was compliant who was not and a Wild

West

you know attracts Cowboys and I don't

think anybody here would disagree with

the fact that a sheriff would be a good

thing a lot of I think that

entrepreneurs feel like they have to

self-censor they don't want to come out

vocally critical of the regulations part

of that is maybe because some of them

just like regulations but I think

another part of it some of them just

feel like they will get attention of the

regulator's if they come out against

them yes we want them to innovate but at

the same time we just can't live in a

world where we're going to permit money

laundering to go on I think regulators

should get that coin sometime to grow up

too much regulation now we'll just

stifle innovation and I think before

regulators kind of come in and say we're

gonna solve all your problems and then

fail to solve all our problems I think

they should give the innovators time to

solve those problems one function of

regulation is to make things clearer

so right now Bitcoin because it's so new

is in a state of flux everywhere the

lesson from the Internet is anything

that China bands invest in and that's a

joke but the u.s. allows Google to

operate here allows Twitter to operate

here allows Bitcoin up right here allows

Facebook to operate here Chinese

government doesn't allow any of those

companies to operate the way they

operate in this country or at all it's

about freedom ultimately you know we're

50 yards from the old World Trade Center

here and I think all of us never want to

see anything like that happen again and

it would have been a lot harder for 9/11

to ever have occurred had we had the

protections in place that would prevent

the movement of massive amounts of money

around the globe by people who would

want to kill everybody in this room so I

think the key is to not create useless

regulation but I think the motives

behind a lot of

those rules are to ensure we don't miss

something again since 2001 there's this

absurd obsession with terrorism so any

time a regulator gets up and says well

Bitcoin can be used for terrorism well

of course it can't so can anything so

come cell phones and so can the internet

and so can a car it doesn't mean that we

should you know stifle the growth of

those industries just because bad people

can use it

this has arguably been the worst week in

the cryptocurrencies short life stunned

by the collapse of once dominant

exchange mount [ __ ] now that failed

firm CEO mark carp Ellis is in hiding

some 750,000 bitcoins allegedly stolen

or lost which accounts for about six

percent of the total circulation by the

time mount [ __ ] went down it was

holding what its customers believed were

about a half a billion dollars worth of

their bitcoins and the company's

bitcoins it was no longer the largest

exchange in the world but part of what's

so amazing is that people kept using it

even after there had been numerous

incidents in which it was clear that the

company was not up to the task of

safeguarding money and the only reason

he survived as long as he did was

because in 2013 the price started going

up people kept putting money into it he

had more and more money because the

price was going up but as soon as the

price started going down and this is

what happened right it peaks in late

2013 starts coming down in 2014 as soon

as that price started coming down

it all just tumbles for him GOx was

going to collapse that it lasted as long

as it did was actually kind of a stroke

of pain but it's finally was it didn't

have the kind of more boring mainstream

institutional controls that we require

to bring it to the next level and

there's a whole bunch of money missing

and no one knows if they just lost it if

it was stolen from them if they

embezzled it or what but the important

lesson from GOx isn't that Bitcoin

doesn't work important lesson from GOx

is that you don't leave your money with

a trusted third party because you can't

always trust them you can only trust

them until you can't

this was also a lesson that people were

supposed to learn during the financial

crisis but they don't seem to have

learned it yet

marker palace was a gamer he was not a

finance pro he really didn't know what

he was doing and he didn't he didn't

build that Jen Mikayla built it he

didn't improve upon it I mean it lurched

from crisis to crisis throughout the

entire history last year was a terrible

year for Bitcoin and especially terrible

year for the foundation history at two

of the people on our board of directors

who had to resign in disgrace basically

you know my expertise is technology my

expertise is not figuring out like who's

trustworthy who's not you know which

businesses are gonna succeed which

businesses are gonna fail after we had

held our hearings we thought we would

take six months to nine months even a

year to draft our initial regulations

this was so complicated that we wanted

to really take our time and get it right

what happened was though not God's plans

and I think that gave us a real renewed

sense of urgency and we realized that if

we got regulation right we could create

more confidence in Bitcoin frankly as

opposed to the sort of loss of

confidence you saw not only from the

Silk Road case but also from the

collapse of Malka so your sense though

of the regulator's right now I assume

you had conversation with the

discussions that we've had I think

everybody recognizes the innovation and

doesn't want to stifle it they just want

to make sure there's healthy regulation

so it's using a safe and in productive

manner I'm not giving up on New York

news giving up on me I came to turn on a

Bitcoin machine an ATM I can't turn it

on I can't make trades I can't do

anything there's no cash flow at all and

it's potential regulation it's

regulation I should believe it's coming

down the pipe I don't want to do

anything that someone's frowning upon

right next door to the stock market

they're gonna lock me up you know you

can't have an exchange well we don't

people meet that in exchange with each

other

New York sitting there on the high horse

and the whole world's waiting on New

York to create some [ __ ] license

ultimately loskis office brought out the

final rules for the bitlicense in the

spring of 2015 a lot of companies

complained that the regulations were too

burdensome for them to operate in New

York and still make money I saw just

overnight dozens of companies that were

on the verge of launching they just

threw in the towel so we can kind of

witness Eric for his new company

shape-shift would have had to apply for

the bit license if it wanted to keep

customers in New York so my lap here I

have the the application forms for

license to engage in virtual currency

business activity which is a very

statist way of saying the the bit

license this is this is the application

to be approved to do basically what

we've all been doing for years now which

is building Bitcoin companies in New

York and a lot of stuff in here

I personally feel is unethical so we're

not going to comply with it which means

we have to block New Yorkers entirely

and when an entire new industry starts

blocking a place like New York that used

to be the financial center of the world

hopefully some of those politicians will

take notice the point of it is to one

make sure there are enough consumer

protections to make sure we have

adequate cyber security 3 make sure that

the companies are adequately capitalized

so they don't collapse upon themselves

you know you've seen a tug of war

between the hardliners and those who are

saying you know you've got to have

enough space for innovation in here and

the system has has come out I think

probably stronger as a result of that

and there's a widespread view amongst

certainly the business Bitcoin community

that some level of regulation gives

legitimacy to what they're doing it

gives people confidence in what they're

doing this is an important part of

growing up

ultimately they're not going to get it

right because no regulation is ever

right but I'm highly confident that

whatever

happens going forward the bit license

will be looked at as a as a positive

development to me and the evolution of

Bitcoin because it just removed one of

the biggest pieces of uncertainty which

is how is this industry going to be

regulated I think most of us at least a

lot of us think that sensible regulation

that sets guidelines that make sure

people's money doesn't just go into a

black hole that's a really important

thing that regulation

I'm sure Satoshi wouldn't be happy to

see this kind of thing

which is not based on the the logic and

reason that a programmer is used to I

think a lot of developers understandably

so try to stay out of the political

nonsense it has been one of the biggest

mysteries raging across the internet who

is Satoshi Nakamoto Newsweek published

an article claiming the man in these

images is the Bitcoin founder the man

who created Bitcoin is known as the

father of Bitcoin the online currency

now worth billions when you asked him

about Bitcoin and he says I can't talk

about this anymore he was not referring

to Bitcoin but with me he definitely

acknowledge Bitcoin I think at this

point now he's saying he was confused by

the conversation clearly somebody

thought that we did this as an act of

war against @osha Nakamoto or Bitcoin

and I want to be very clear that I

certainly never meant it that way I have

nothing to do with Bitcoin it was a

monstrous story how did they figure it

out oh my god look at this guy that they

named his name was Dorian Satoshi

Nakamoto living in California basically

hiding in plain sight it becomes a

gigantic media scramble and then Dorian

emerges from his house looking kind of

disheveled looking kind of confused and

says he's not Satoshi Nakamoto says he's

never heard of Bitcoin he doesn't

understand he had one conversation with

Lea she misunderstood what he said she

took it the wrong way

and you probably would have had to have

been a cypherpunk to understand all the

elements of it that had already been put

together the odds of it seemed very low

to me that it was somebody from

completely outside that community who

happened to know all these different

things and put this together and appear

out of nowhere the day that news week's

story came out naming Dorian Nakamoto as

the creator of Bitcoin I got this email

from an old acquaintance that was titled

what are the odds and it's laid out the

fact that Hal Finney lives less than two

miles away from the known address of

Dorian Nakamoto where Newsweek had found

him and how funny is the number two ever

user a Bitcoin to receive the first

Bitcoin transaction he works on an early

prototype of an anonymous currency

system he was a cyberpunk so how could

it be that the purported creator of

Bitcoin and this known confirmed a

second ever user of Bitcoin hadn't ever

collaborated that helped Vinnie who was

less than two miles away from Dorian

Nakamoto hadn't helped to create Bitcoin

or maybe he really was the creator of

Bitcoin may be helping he was Satoshi

Nakamoto when you look at the Bitcoin

white paper it made reference to a lot

of the earlier projects that fed into

Bitcoin but it's very notable that the

one project it doesn't refer to is Nick

Sabo's bit cold which is perhaps the

closest precedent and the closest

parallel to Bitcoin

I mean if gold is so close to Bitcoin

it's hard not to think that you know

maybe Nick is Satoshi a lot of people

will say Nakamoto must be Sabo Nakamoto

must have been Finney but I don't think

he was trying to leave any breadcrumbs

out there for anybody to follow

I told my editor about it she agreed

that you found satoshi nakamoto so I got

on a plane to Santa Barbara and I drove

out to help in his house but at this

stage he was already completely

paralyzed by ALS this really awful

debilitating terminal illness that

slowly shuts down your body while

leaving your minds completely intact and

at the time when he started to fade and

his physical abilities did roughly

coincide with the time that satoshi

nakamoto started to disappear

that may be the reason that Satoshi

Nakamoto had chosen to fade away it was

because he'll penny was physically

fading there have been a number of stylo

metric studies and you see so many of

these similarities between satoshis

writing and those of Nix including these

little things like having two spaces at

the beginning of a sentence and phrases

and Spelling's that nobody else uses so

I talked to how as much as I could

mostly in a kind of one way interview

because he could really only respond

with yes or no answers and he denied

being Satoshi Nakamoto you could tell me

he was amused by the whole idea that I

thought he was Satoshi Nakamoto one of

the really remarkable things from Nick

Sabo's writing in those months before

Bitcoin was publicly launched is that

Nick in responding to some comments

about a post he had made about bitgold

actually asked the other people who were

reading him if anybody wanted to help

him code this idea into real software

that could work it was never turned into

a reality but when you look at bitgold

it's it's hard not to be struck by the

similarities between it and an Bitcoin

maybe it was a duo it was Szabo and

he'll fini

and now it's possible how could have

been the coder I don't know you know

this idea that the hell Feeny could have

been that kind of ghost coder for a big

coin I guess it's possible other people

kind of speculating on reddit's or other

parts of the Internet thought that maybe

he'll thing he had used Dorian Nakamoto

as a patsy if he were ever traced back

to Dorian Nakamoto would seem like this

guy was the creator and Hal Finney would

be sort of immunized from it everyone

else who was involved in the project

leading up to Bitcoin has released their

communications with Satoshi from this

period nick has avoided doing that and

essentially went silent in those

critical months after Bitcoin was

released you know when you talk to

people face-to-face and they tell you

these things you can get a sense of

their being honest and if health Ania

actually had a secret billion-dollar

cache of bitcoins he wouldn't have been

able to lie to me so effectively about

it in the end the reasons to believe

that this was all just a coincidence

began to outweigh the coincidence itself

it's almost like an eel there's

something there you can see it but as

soon as you touch it it just slides

right out of your hands and you're left

with nothing anybody who is of any note

in the cyberpunk movement and even

outside of it too

has at one time or another been called

Satoshi how Finney tonight at an example

denied it they've all denied it maybe

one of them is Satoshi maybe all of them

are Satoshi it really is a mystery

[Music]

[Music]

[Laughter]

[Music]

that's your original ticker from next

door all right so we're over here

Bitcoin 700 feet from the stock exchange

over here and you know some of you guys

took a hit last week last couple of

weeks a lot of the big guys they got

their foothold in the business that they

weren't a part of in the beginning I

don't know what's going on but I don't

know I wouldn't write off a quick line

that easy I know that bitcoin is gonna

change the world it's changing the world

already and we have to stand tall and

proud as bitcoiners and early adopters

they don't know anything about new

technology but once it starts making

sense they throw their dollars behind it

[Music]

you know unfortunately early adopters

make the roads that we all travel down

and they are usually paved over in the

process the first guy through the door

gets shot you know but somebody's got to

go through the door but they're gonna

get shot Charlie Shrem Ross Albrecht

julian assange they got shot coming

through the door but we are all

utilizing the freedoms and technologies

afforded to us because they knock the

door down hey Michael can I put you on

speakerphone for a minute if I know how

hey Michael can I ask you a word where

did you buy bitcoins yeah did you lose

it how much do you still have them do I

want to buy it no not today though it is

going to spear round did you ever use it

to buy anything no okay

they should go back to you know day one

and just start all over

forget about Bitcoin and call up

something else I think it's been so

tarnished now with this with the Silk

Road and you know I just think you know

all that stuff about 400 million dollars

disappearing and you're just not going

to get off the ground

nobody's going to you know like why

Buffett said stay the hell away from it

to put all the cards on the table I'm

gonna be leaving the department in the

coming weeks

and if you asked me back when I took

this job in 2011 what I thought we'd be

working on during my tenure digital

currencies would not have been at the

top of the list

so been lossky created this thing called

a bit license which is New York's

attempt to regulate the scary new

technology it's now law and he has

announced that he is leaving government

in order to set up his own private

consulting firm to help companies

navigate financial regulations such as

the bit license that he created so we

essentially had this beautiful new eco

system being built and Ben Lasky comes

by says I'm here to protect consumers he

builds a huge wall around the thing and

then he sits outside the gate charging

people to get in this is the very

definition of crony capitalism and for

some reason that lossky doesn't even see

anything wrong with that I think history

will not judge him as favorably as he

thinks so yeah Joe I've started up my

own consulting business it's been quite

interesting doing a lot of work in the

FinTech space but also doing work with a

lot of traditional companies in the

financial services world as well Ben

loskis team at the DFS that was working

on this these this bit license and the

Bitcoin initiative have all ended up

leaving the agency and going to

consulting firms that are now working on

these issues

Danny alder is going to work for it

Bette and Dana Syracuse is going to work

for the consulting firm k2 if it is

particularly notable because they were

the first to find a way to partner with

the DFS to get license to open their own

Bitcoin exchange

when this is over definitely gonna leave

New York when I can where I'm gonna go I

don't know I think the Bitcoin community

in New York is done with there's no it

doesn't foster innovation it's too

difficult to have a Bitcoin company no

banks no clinic accounts

you're the threat of regulation yeah

high profile arrest like myself and

others it's no one wants to deal with it

when did you first start digging another

coin to two and a half years ago when I

took over the farm exchange payments

business at JPMorgan so you probably had

to mount Cox that instead you're Charlie

and those guys I've been associated with

almost none of those guys are around

anyway two years ago with all the major

banks Bitcoin was an afterthought it was

kind of a you know maybe in a hallway

conversation at the water cooler and now

you know even this week I met with one

of the other major banks everyone's got

a Bitcoin specialist at least one and

working were kind of teams of people who

are trying to figure out how to

incorporate the technology into their

existing operation banks and

institutions associated with the

financial system I really started and

recognized that the payment system

underlying banking could be made more

efficient by the application of

blockchain technologies the blockchain

technology underlying Bitcoin has become

something that a lot of people are now

very very interested in for all kinds of

other uses whether it's allowing for

derivatives to be transferred or

securities to be transferred or all

manner of financial instruments to be

transferred in complex interesting ways

I think different companies are going to

adopt different strategies and it's

gonna be fascinating to watch companies

like digital asset Holdings like masters

company doing very very interesting work

I didn't become aware of Bitcoin in any

meaningful sense until 2014

late in the year and at the time my

perspective was one of skepticism I

would say specifically because the story

line that I heard related very much to

cryptocurrency as a potential medium of

exchange and store of value which is a

valid debate and application but it

doesn't have the full extent of the

power that the underlying technology has

to achieve live masters is not just any

banker she is this person who I think is

really seen as being behind some of the

most problematic innovations in the

financial industry over the last three

decades why does the one who is

essentially given credit for creating

the credit default swap which

essentially provides a way to bet on the

default of a bond and the credit default

swap ended up taking this place at the

center of the financial crisis and these

bets that banks had made against

subprime mortgages

blockchain technology eradicate a

significant amount of inefficiency in

the system and reduces costs it doesn't

mean that we are doing away with the

need for trust in financial services at

all Bitcoin was designed to find a way

to circumvent Wall Street and what

Blythe masters is doing is essentially

trying to find ways to bring Wall Street

into Bitcoin and make it possible for

them to use this technology as well what

the bankers seem to be looking to do at

this point is create their own private

blockchain where their computers are

powering it rather than these anonymous

miners they want control over the system

the banks are looking at this incredibly

wide array of ways that they might use

this which include you know replacing

stock exchanges finding new ways to

originate loans finding new ways to move

money between countries and of course

that's going back to the original idea

of Bitcoin but now it's happening within

these financial institutions rather than

outside it as Bitcoin had imagined I

have no problem with the banking system

and the financial industry co-opting

Bitcoin primarily because Bitcoin can't

really be co-opted the fact that it's

decentralized means no one can control

it no matter who they are or how much

money they have I think it's all good

critical and I think all of the

innovation that's happening both on Wall

Street and in Silicon Valley I think

competition will take care of people who

want to try to have a monopoly or who

want to try to charge more than they

should for whatever product or service

that is happening on the blockchain it

really is as advertised it really is

controlled by all the people who are

using it and it really is designed just

to be a more efficient more fair way of

sending value of the unit

bitcoin is not neutral you cannot remove

the political component that Satoshi

implanted in Bitcoin from Bitcoin it's

what a lot of the people on the Wall

Street side tried to do you cannot

neutralize Bitcoin it's impossible

thankfully I'm gonna go to a you know

comfy federal prison camp without fences

that's pool tables and a track and a

baseball field and decent food kind of

100-200 people that are white-collar

those guys in prison are the best ones

to use a bit yeah they're smart I'm very

excited to talk to them about it

so yes the VCS are driving this thing

right now they're pouring money into it

they're they're building these

for-profit companies people who haven't

had a background outside of Bitcoin

seeing the value of it and coming to it

but just because they're doing

everything they're doing doesn't mean

that the libertarians and the utopians

have to go away bitcoin is open-source

you can do whatever you want with it so

they're still there they're still

building their products they're still

building their vision and if Bitcoin

goes mainstream and if it gets picked up

even if it's running in the background

there are going to be elements of that

and that's not it's kind of what utopia

movements always are the thing that

utopians were dreaming about is not

gonna happen the way they expected it

but I do think it is going to filter

through and you are gonna see it you're

gonna see

so you're going to show me that's atashi

Nakamoto is you yes some people will

believe some people won't and to tell

you the truth I don't really care that

you can say hand on heart to me i am

satoshi nakamoto i was the main part of

it other people helped me I'm going to

come in front of that camera once and I

will never ever be on a camera ever

again for any TV station or any media

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you

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you

you

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I really like it down here I live right

literally right by the World Trade

Center I could walk home I live above it

actually my ankle bracelet

tell the government where I am every

second of the day any time of the day

but it's gonna come off when they go to

prison I think and I don't think I'm

wearing some prison so that's what

that's what the plan is for that

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closing numbers on the markets today at

one point the market fell as if down oh

well it was a historic day with Wall

Street's shaken to it's very foundation

and even the health of the most trusted

firms are now being called into question

we have former secretaries of Treasury

who go from government to Wall Street

pocketing hundreds of millions of

dollars in 2008 at Kim's