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1
00:00:28,396 --> 00:00:31,399
[MUSIC PLAYING]
2
00:00:52,186 --> 00:00:53,621
I REALLY LIKE IT
DOWN HERE.
3
00:00:53,654 --> 00:00:55,523
I LIVE LITERALLY RIGHT BY
THE WORLD TRADE CENTER.
4
00:00:55,556 --> 00:00:58,092
I WALK HOME.
I LIVE ABOVE IT, ACTUALLY.
5
00:01:02,563 --> 00:01:03,564
MY ANKLE BRACELET.
6
00:01:05,299 --> 00:01:06,867
TELLS THE GOVERNMENT
WHERE I AM
7
00:01:06,900 --> 00:01:09,803
EVERY SECOND OF THE DAY,
8
00:01:09,837 --> 00:01:11,605
ANY TIME OF THE DAY.
9
00:01:11,639 --> 00:01:14,675
BUT IT'S GONNA COME OFF
WHEN I GO TO PRISON, I THINK.
10
00:01:14,708 --> 00:01:17,145
I MEAN, I DON'T THINK
I'M WEARING THIS IN PRISON,
SO...
11
00:01:17,178 --> 00:01:19,347
THAT'S WHAT
THE PLAN IS FOR THAT.
12
00:01:20,348 --> 00:01:23,117
[MUSIC PLAYING]
13
00:01:42,270 --> 00:01:45,573
[BRIAN WILLIAMS]
CLOSING NUMBERS
ON THE MARKETS TODAY,
14
00:01:45,606 --> 00:01:49,843
AT ONE POINT, THE MARKET
FELL AS IF DOWN A WELL.
15
00:01:49,877 --> 00:01:51,412
[NEWSCASTER]
IT WAS AN HISTORIC DAY,
16
00:01:51,445 --> 00:01:54,448
WITH WALL STREET SHAKEN
TO ITS VERY FOUNDATION.
17
00:01:54,482 --> 00:01:57,551
AND EVEN THE HEALTH
OF THE MOST TRUSTED FIRMS
18
00:01:57,585 --> 00:01:59,353
ARE NOW BEING
CALLED INTO QUESTION.
19
00:01:59,387 --> 00:02:01,889
[RAND PAUL]
WE HAVE FORMER
SECRETARIES OF TREASURY
20
00:02:01,922 --> 00:02:03,824
WHO GO FROM GOVERNMENT
TO WALL STREET
21
00:02:03,857 --> 00:02:06,460
POCKETING HUNDREDS
OF MILLIONS OF DOLLARS.
22
00:02:08,762 --> 00:02:10,898
[ERIK VOORHEES]
IN 2008, I BECAME
SOMEWHAT OBSESSED
23
00:02:10,931 --> 00:02:15,236
WITH THE ROLE
THAT MONEY ITSELF PLAYED
IN THE CRISIS
24
00:02:15,269 --> 00:02:17,371
AND THE ROLE THAT GOVERNMENTS
AND BANKS PLAYED IN MONEY,
25
00:02:17,405 --> 00:02:20,708
AND WHY WAS IT
THAT OUR MONEY WAS CONTROLLED
BY CENTRAL BANKS?
26
00:02:23,577 --> 00:02:25,279
[GAVIN ANDRESEN]
IF SOMETHING NEW HAPPENS,
27
00:02:25,313 --> 00:02:27,915
IS THE GOVERNMENT
LIKELY TO GIVE IT A NOD
28
00:02:27,948 --> 00:02:29,917
OR AT LEAST IGNORE IT FOR A
WHILE, OR IS THE GOVERNMENT
29
00:02:29,950 --> 00:02:31,652
LIKELY TO COME DOWN
AND TRY TO CRUSH IT
30
00:02:31,685 --> 00:02:34,322
BECAUSE THEY'RE AFRAID
OF ANYTHING NEW AND DIFFERENT?
31
00:02:35,856 --> 00:02:39,727
[NICK SPANOS]
THIS IS A MONETARY
REVOLUTION.
32
00:02:39,760 --> 00:02:42,430
BITCOIN IS
THE HONEST CURRENCY.
33
00:03:06,354 --> 00:03:09,490
[QUIET CHATTER]
34
00:03:09,523 --> 00:03:10,658
[NANCY CANNUCCIARI]
OKAY, THIS PAST WEEK
35
00:03:10,691 --> 00:03:12,993
WE'VE BEEN TALKING
ABOUT MONEY.
36
00:03:13,026 --> 00:03:15,729
I'M GONNA ASK EVERYBODY
WHAT YOU THINK MONEY IS.
37
00:03:15,763 --> 00:03:17,831
CAN YOU GIVE ME
SOME ANSWERS NOW?
38
00:03:17,865 --> 00:03:21,669
MONEY IS, LIKE, PAPER
39
00:03:21,702 --> 00:03:23,804
AND YOU CAN, LIKE,
BUY STUFF WITH IT.
40
00:03:23,837 --> 00:03:26,907
SO YOU HAVE TO HAVE, LIKE,
FOUR QUARTERS FOR A DOLLAR.
41
00:03:26,940 --> 00:03:29,977
YOU NEED MONEY TO BUY
YOUR HOUSE, LIKE, FOOD,
42
00:03:30,010 --> 00:03:33,847
WATER, OXYGEN--
NOT OXYGEN.
43
00:03:35,783 --> 00:03:38,519
[PAUL VIGNA]
MONEY IS BASICALLY JUST
AN ACCOUNTING SYSTEM.
44
00:03:38,552 --> 00:03:41,455
IT IS A WAY OF RECORDING
WHO OWNS WHAT,
45
00:03:41,489 --> 00:03:43,824
WHO HAS WHAT,
WHO OWES WHAT TO WHOM.
46
00:03:43,857 --> 00:03:46,560
THAT IS ALL MONEY REALLY IS.
47
00:03:46,594 --> 00:03:48,862
AND YOU NEEDED SOMEBODY
48
00:03:48,896 --> 00:03:50,964
WHO COULD STAND AS
THE CENTRAL ISSUER,
49
00:03:50,998 --> 00:03:53,401
SOMEBODY WHO WAS
THE TRUSTED THIRD PARTY,
50
00:03:53,434 --> 00:03:56,737
SOMEONE WHO COULD GUARANTEE
THAT THE MONEY WAS REAL.
51
00:03:56,770 --> 00:03:58,439
AND FOR
HUNDREDS OF YEARS NOW,
52
00:03:58,472 --> 00:04:00,708
WE HAVE HAD
GOVERNMENTS ISSUE MONEY.
53
00:04:00,741 --> 00:04:03,944
AGAIN, MONEY IS JUST
AN ACCOUNTING SYSTEM.
54
00:04:03,977 --> 00:04:05,546
THAT'S WHAT BITCOIN IS.
55
00:04:05,579 --> 00:04:07,281
BITCOIN IS REALLY JUST
AN ACCOUNTING SYSTEM.
56
00:04:07,315 --> 00:04:09,950
IT IS A WAY OF
RECORDING TRANSACTIONS,
57
00:04:09,983 --> 00:04:11,552
RECORDING VALUE,
58
00:04:11,585 --> 00:04:12,886
AND IT DOES IT DIGITALLY,
59
00:04:12,920 --> 00:04:14,788
SO YOU AND I CAN SEND IT
TO EACH OTHER DIRECTLY,
60
00:04:14,822 --> 00:04:17,525
AND EVERYTHING IS RECORDED
IN THE OPEN LEDGER.
61
00:04:17,558 --> 00:04:20,628
[MICHAEL CASEY]
BY MONITORING AND
UPDATING THAT LEDGER,
62
00:04:20,661 --> 00:04:23,531
IN A COLLECTIVE,
CONSENSUS-BASED SYSTEM,
63
00:04:23,564 --> 00:04:24,998
YOU DO AWAY WITH THE NEED
64
00:04:25,032 --> 00:04:26,900
FOR SOMEBODY IN THE MIDDLE
HAVING TO BE
65
00:04:26,934 --> 00:04:29,069
THAT SORT OF REPOSITORY
OF ALL THE INFORMATION.
66
00:04:29,102 --> 00:04:31,805
AND THAT'S WHAT GETS AWAY
FROM THE FEES,
67
00:04:31,839 --> 00:04:33,507
THE INEFFICIENCIES,
68
00:04:33,541 --> 00:04:36,910
AND ULTIMATELY THE POTENTIAL
FOR CORRUPTION AND RISK
69
00:04:36,944 --> 00:04:40,714
THAT COME WITH CENTRALIZING
INFORMATION IN THAT WAY.
70
00:04:42,450 --> 00:04:43,751
[VIGNA]
WHAT IT DOES IS IT TAKES
71
00:04:43,784 --> 00:04:46,520
THAT TRUSTED
THIRD PARTY FUNCTION
72
00:04:46,554 --> 00:04:48,322
AND IT AUTOMATES IT.
73
00:04:48,356 --> 00:04:51,592
IT PUTS IT
INTO AN OPEN LEDGER
THAT IS PUT ONLINE
74
00:04:51,625 --> 00:04:53,527
THAT IS THERE
FOR ANYBODY TO SEE,
75
00:04:53,561 --> 00:04:56,096
SO THAT EVERY BITCOIN
IS ACCOUNTED FOR,
76
00:04:56,129 --> 00:04:59,800
SO THAT YOU KNOW
THAT YOU'RE NOT GETTING
A COUNTERFEIT BITCOIN.
77
00:04:59,833 --> 00:05:02,770
[NATHANIEL POPPER]
IT'S KIND OF REMARKABLE
THAT THIS IDEA OF BITCOIN
78
00:05:02,803 --> 00:05:04,805
WAS LAUNCHED
JUST A FEW WEEKS
79
00:05:04,838 --> 00:05:07,441
AFTER LEHMAN BROTHERS
WENT BANKRUPT
80
00:05:07,475 --> 00:05:10,043
AND THE WHOLE SYSTEM
NEARLY COLLAPSED.
81
00:05:10,077 --> 00:05:14,081
AND THE PROBLEMS
THAT CROPPED UP IN THE CRISIS
82
00:05:14,114 --> 00:05:18,519
WERE VERY MUCH
A PART OF THE WRITINGS
OF SATOSHI NAKAMOTO.
83
00:05:18,552 --> 00:05:20,654
I THINK WHAT THE CRISIS
SHOWED IS THAT
84
00:05:20,688 --> 00:05:24,392
THE EXISTING SYSTEM
HAD SOME MAJOR FLAWS.
85
00:05:24,425 --> 00:05:27,060
IT WASN'T WORKING
AND PEOPLE WERE HUNGRY
86
00:05:27,094 --> 00:05:28,662
FOR SOME SORT
OF ALTERNATIVE.
87
00:05:36,504 --> 00:05:37,838
[VOORHEES]
I DISCOVERED BITCOIN'S POWER
88
00:05:37,871 --> 00:05:39,740
WHEN I UNDERSTOOD
FOR THE FIRST TIME
89
00:05:39,773 --> 00:05:41,074
THAT IT WAS NOT CONTROLLED
90
00:05:41,108 --> 00:05:43,110
BY A CENTRAL COMPANY
OR A CENTRAL PERSON.
91
00:05:43,143 --> 00:05:45,479
BECAUSE I KNEW THAT MEANT
IT COULDN'T BE SHUT DOWN.
92
00:05:45,513 --> 00:05:47,114
AND IF IT CAN'T
GET SHUT DOWN,
93
00:05:47,147 --> 00:05:49,483
ALL IT NEEDS IS
TO DO SOMETHING USEFUL,
94
00:05:49,517 --> 00:05:51,485
AND IT WILL BECOME
MORE AND MORE ADOPTED
95
00:05:51,519 --> 00:05:52,786
AND AS THE VALUE GROWS,
PEOPLE WILL FIND
96
00:05:52,820 --> 00:05:54,588
MORE AND MORE USES FOR IT.
97
00:05:54,622 --> 00:05:56,457
[SPANOS]
THE BEAUTY OF BITCOIN IS,
98
00:05:56,490 --> 00:05:58,592
IT'S EASILY TRANSFERRABLE,
IT'S ANONYMOUS.
99
00:05:58,626 --> 00:06:01,895
AND BY 2140
THERE'S GONNA BE 21 MILLION,
100
00:06:01,929 --> 00:06:03,063
AND THAT'S THE CAP.
101
00:06:03,096 --> 00:06:05,999
THERE'S ONLY
X AMOUNT OF GOLD.
102
00:06:06,033 --> 00:06:08,836
THERE'S ONLY X AMOUNT
OF BITCOIN.
103
00:06:08,869 --> 00:06:10,904
[ANDRESEN]
BEFORE, IF YOU WANTED
TO SEND
104
00:06:10,938 --> 00:06:12,840
SOMETHING OF VALUE
ACROSS THE INTERNET,
105
00:06:12,873 --> 00:06:14,775
YOU HAD TO GET
SOMEBODY ELSE INVOLVED.
106
00:06:14,808 --> 00:06:16,777
YOU HAD TO HAVE
A CREDIT CARD COMPANY
107
00:06:16,810 --> 00:06:19,880
OR PAYPAL,
OR MAYBE A BANK
108
00:06:19,913 --> 00:06:21,815
INVOLVED
IN THE TRANSACTION.
109
00:06:21,849 --> 00:06:23,651
THE PROMISE OF BITCOIN
IS THAT
110
00:06:23,684 --> 00:06:28,456
YOU'RE DIRECTLY SENDING
THIS CURRENCY TO ANOTHER PERSON
111
00:06:28,489 --> 00:06:30,424
AND THEN
THE BITCOIN NETWORK
112
00:06:30,458 --> 00:06:32,726
PERFORMS THE FUNCTION
THAT NORMALLY PAYPAL
113
00:06:32,760 --> 00:06:35,763
OR A BANK OR
YOUR CREDIT CARD COMPANY
WOULD PERFORM.
114
00:06:35,796 --> 00:06:39,433
BITCOIN REALLY
PUTS THE CONTROL BACK
IN THE HANDS OF EVERYBODY.
115
00:06:39,467 --> 00:06:41,935
EVERYBODY WHO'S PARTICIPATING
IN THE BITCOIN SYSTEM
116
00:06:41,969 --> 00:06:43,737
IS CONTROLLING
HOW IT WORKS.
117
00:06:51,945 --> 00:06:53,747
[JEFFERY TUCKER]
IF YOU WANT TO LOOK
FOR THE GENESIS
118
00:06:53,781 --> 00:06:56,684
OF CRYPTOCURRENCY,
IT WAS THE CYPHERPUNK
MOVEMENT,
119
00:06:56,717 --> 00:06:58,852
YOU KNOW, GROWING OUT
OF A KIND OF A LOVE
OF THE INTERNET
120
00:06:58,886 --> 00:07:00,488
AND ITS POSSIBILITIES.
121
00:07:00,521 --> 00:07:03,056
THE DISCOVERING
OF CRYPTOGRAPHY AND IMAGINING
122
00:07:03,090 --> 00:07:07,828
THAT YOU COULD GIVE BIRTH
TO A NEW WORLD, REALLY,
123
00:07:07,861 --> 00:07:09,697
OUT OF THE INTERNET.
124
00:07:09,730 --> 00:07:11,765
A WORLD THAT LIVES OUTSIDE
OF THE NATION-STATE,
125
00:07:11,799 --> 00:07:14,134
AND OUTSIDE THE STRUCTURES
OF POWER AND THE HIERARCHIES
126
00:07:14,167 --> 00:07:15,936
THAT ARE ASSOCIATED
WITH THAT.
127
00:07:15,969 --> 00:07:18,138
[ALEX WINTER]
THESE PEOPLE HAD TALKED
ABOUT THE NEED
128
00:07:18,171 --> 00:07:20,508
AND THE POSSIBILITY
FOR A DIGITAL CURRENCY
129
00:07:20,541 --> 00:07:22,476
THAT WAS ANONYMOUS
OR COULD BE ANONYMIZED,
130
00:07:22,510 --> 00:07:24,111
USING CRYPTOGRAPHY.
131
00:07:24,144 --> 00:07:26,780
THE CYPHERPUNKS THAT EMERGED
IN THE EARLY '90S
132
00:07:26,814 --> 00:07:29,917
WERE HYPER-CONCERNED
ABOUT PRIVACY,
133
00:07:29,950 --> 00:07:31,885
ABOUT PERSONAL LIBERTY,
134
00:07:31,919 --> 00:07:34,187
AND A LOT OF PEOPLE HAD COME UP
WITH THEIR OWN SYSTEMS.
135
00:07:34,221 --> 00:07:36,657
SOME OF THEM CAME
VERY CLOSE TO HAPPENING.
136
00:07:36,690 --> 00:07:41,128
THE ONE THAT PROBABLY CAME
THE CLOSEST WAS DIGICASH
FROM DAVID CHAUM.
137
00:07:41,161 --> 00:07:42,596
[DAVID CHAUM]
PRIVACY OF PAYMENTS
138
00:07:42,630 --> 00:07:45,065
IS ACTUALLY ESSENTIAL
FOR DEMOCRACY.
139
00:07:45,098 --> 00:07:47,968
THE REASON IS NOT
BECAUSE YOU NEED TO BE ABLE
140
00:07:48,001 --> 00:07:50,904
TO MAKE PRIVATE PAYMENTS
IN ORDER TO EXPRESS YOURSELF,
141
00:07:50,938 --> 00:07:54,608
BUT RATHER THAT IN ORDER
TO INFORM YOURSELF,
142
00:07:54,642 --> 00:07:56,877
YOU MAY NEED
TO PURCHASE INFORMATION
143
00:07:56,910 --> 00:08:01,715
AND THAT'S THE THING
THAT ALLOWS YOU TO HAVE
OPINIONS WORTH EXPRESSING.
144
00:08:01,749 --> 00:08:04,151
[ANDY GREENBERG]
ALTHOUGH I WOULDN'T SAY
DAVID CHAUM WAS A CYPHERPUNK,
145
00:08:04,184 --> 00:08:07,020
HE DEFINITELY INSPIRED
THE CYPHERPUNK MOVEMENT.
146
00:08:07,054 --> 00:08:09,990
IT'S AS IF THE CYPHERPUNKS
KIND OF CAME UPON
147
00:08:10,023 --> 00:08:13,661
DAVID CHAUM'S TOOLS,
LIKE THE TECHNOLOGY
148
00:08:13,694 --> 00:08:14,895
OF SOME ALIEN SPECIES,
149
00:08:14,928 --> 00:08:16,697
AND THEY ONLY TOOK
THE WEAPONS.
150
00:08:16,730 --> 00:08:19,600
THEY WERE MOST INTERESTED
IN THE ONES THAT COULD BE USED
151
00:08:19,633 --> 00:08:22,670
TO DISEMPOWER THE GOVERNMENT
AND EMPOWER INDIVIDUALS.
152
00:08:22,703 --> 00:08:24,738
[VIGNA]
THE BREAK BETWEEN HIM
AND THE CYPHERPUNKS CAME
153
00:08:24,772 --> 00:08:26,106
WHEN HE REALIZED
HE WOULD NEED
154
00:08:26,139 --> 00:08:28,041
EXISTING INSTITUTIONS
TO HELP HIM WITH IT,
155
00:08:28,075 --> 00:08:29,810
SO HE STARTED
TALKING TO GOVERNMENTS,
156
00:08:29,843 --> 00:08:31,011
HE STARTED TALKING TO BANKS.
157
00:08:31,044 --> 00:08:32,580
HE WAS VERY CLOSE
TO HAVING
158
00:08:32,613 --> 00:08:34,181
THIS THING HAPPEN
IN THE LATE '90S,
159
00:08:34,214 --> 00:08:36,550
AND NOBODY WAS REALLY
PREPARED FOR THIS
160
00:08:36,584 --> 00:08:38,552
OUTSIDE OF
THE CYPHERPUNK MOVEMENT.
161
00:08:38,586 --> 00:08:40,053
[POPPER]
PEOPLE IT SEEMED LIKE
162
00:08:40,087 --> 00:08:41,989
HAD ALMOST SORT OF
GIVEN UP ON THE PROJECT.
163
00:08:42,022 --> 00:08:44,157
OTHER THAN A FEW
EXPERIMENTS HERE AND THERE,
164
00:08:44,191 --> 00:08:47,094
BY HAL FINNEY,
NICK SZABO,
165
00:08:47,127 --> 00:08:50,564
THE CONVERSATION AROUND THIS
REALLY DIED DOWN.
166
00:08:50,598 --> 00:08:53,601
AND THEN ALL OF A SUDDEN
IT CAME BACK TO LIFE
167
00:08:53,634 --> 00:08:55,703
AFTER THE FINANCIAL CRISIS,
168
00:08:55,736 --> 00:08:59,206
AND YOU HAD PEOPLE
GOING BACK TO THOSE EXPERIMENTS
IN THE 1990S
169
00:08:59,239 --> 00:09:02,075
AND LOOKING AT NEW WAYS OF
PUTTING THOSE IDEAS TOGETHER.
170
00:09:02,109 --> 00:09:05,879
NICK SZABO, IN 2006,
HAD JUST FINISHED UP
171
00:09:05,913 --> 00:09:09,149
A MID-LIFE STINT
AT LAW SCHOOL,
172
00:09:09,182 --> 00:09:12,920
AND IF YOU LOOK NICK'S WRITING
AROUND THE FINANCIAL CRISIS
173
00:09:12,953 --> 00:09:16,356
THAT IS REALLY REVIVED
HIS INTEREST
174
00:09:16,389 --> 00:09:18,992
IN THESE IDEAS THAT,
YOU KNOW,
175
00:09:19,026 --> 00:09:20,894
HE HAD BEEN WORKING ON
IN THE 1990S
176
00:09:20,928 --> 00:09:24,865
WITH PRIVACY AND CONTRACTS
AND THE PROBLEMS
177
00:09:24,898 --> 00:09:27,701
OF GOVERNMENTS
AND OTHER TRUSTED
THIRD PARTIES.
178
00:09:27,735 --> 00:09:31,872
AND HE BROUGHT BIT GOLD
BACK INTO THE CONVERSATION.
179
00:09:31,905 --> 00:09:34,007
[VIGNA]
SO HAL FINNEY
CAME UP WITH HIS OWN SYSTEM.
180
00:09:34,041 --> 00:09:37,044
ADAM BACK HAS HASHCASH,
WEI DAI HAS B MONEY,
181
00:09:37,077 --> 00:09:38,879
SZABO HAS BIT GOLD.
182
00:09:41,148 --> 00:09:43,216
[WINTER]
SO WHAT SATOSHI DID
IN 2008,
183
00:09:43,250 --> 00:09:46,920
WAS SATOSHI TOOK
A LOT OF THESE IDEAS
AND MADE THEM WORK.
184
00:09:46,954 --> 00:09:49,222
HE CREATED
AN ENCRYPTION-BASED
PROTOCOL--
185
00:09:49,256 --> 00:09:50,758
IT'S NOT REALLY
A CURRENCY--
186
00:09:50,791 --> 00:09:53,226
UTILIZING A LEDGER
CALLED THE BLOCKCHAIN,
187
00:09:53,260 --> 00:09:56,363
ALLOWING FOR MANY KINDS
OF TRANSACTIONS TO OCCUR.
188
00:09:56,396 --> 00:09:57,798
CONTRACTS,
ALL KINDS OF THINGS
189
00:09:57,831 --> 00:09:59,366
CAN BE BUILT
INTO THE BLOCKCHAIN.
190
00:09:59,399 --> 00:10:03,837
AND IT DOES THIS
THROUGH A SYSTEM
OF CONSENSUS BUILDING
191
00:10:03,871 --> 00:10:07,941
WHERE MULTIPLE COMPUTERS
ALL PARTICIPATE
192
00:10:07,975 --> 00:10:10,911
IN THE MANAGEMENT
OF THE BLOCKCHAIN LEDGER,
193
00:10:10,944 --> 00:10:12,946
A KIND OF DIGITAL DOCUMENT,
IF YOU WILL,
194
00:10:12,980 --> 00:10:14,682
THAT KEEPS TRACK
OF ALL THE PAYMENTS.
195
00:10:25,859 --> 00:10:27,728
I UNDERSTAND
IT'S SOMETHING THAT
196
00:10:27,761 --> 00:10:30,764
IS INSTANTANEOUS ONLINE
197
00:10:30,798 --> 00:10:33,734
AND IT CAN GO
FROM ONE COUNTRY
TO THE OTHER
198
00:10:33,767 --> 00:10:35,803
AND YOU KNOW,
THEY CAN HAVE THEIR MONEY.
199
00:10:35,836 --> 00:10:39,039
WELL, I NEVER HEARD OF IT
UNTIL NANCY CALLED ME
200
00:10:39,072 --> 00:10:41,909
AND MENTIONED
DIGITAL CURRENCY
201
00:10:41,942 --> 00:10:44,044
AND I'M THINKING
SHE MUST HAVE BEEN
202
00:10:44,077 --> 00:10:45,813
IN THE BOTTLE THIS MORNING
OR SOMETHING.
203
00:10:45,846 --> 00:10:46,980
-[LAUGHTER]
-DIGITAL CURRENCY, OH.
204
00:10:47,014 --> 00:10:48,949
WHAT, WHAT?
YOU KNOW.
205
00:10:48,982 --> 00:10:51,952
BUT THEY SAY
IT'S FOR PEOPLE WHO DON'T
HAVE BANK ACCOUNTS.
206
00:10:51,985 --> 00:10:53,253
I CAN'T UNDERSTAND.
207
00:10:53,286 --> 00:10:54,354
IF YOU HAVE ONE COIN,
IT'S--
208
00:10:54,387 --> 00:10:57,424
LET'S SAY IT'S WORTH
$150.
209
00:10:57,457 --> 00:11:01,261
WHAT DO YOU DO,
GIVE THE NUMBER OR SOMETHING
TO THE--
210
00:11:01,294 --> 00:11:03,130
SAY, THE GROCERY
STORE PERSON,
211
00:11:03,163 --> 00:11:04,965
AND THEN THEY SUBTRACT IT?
212
00:11:04,998 --> 00:11:07,467
HOW DO YOU KNOW?
HOW DO YOU MAKE CHANGE?
213
00:11:07,500 --> 00:11:10,137
HOW DO YOU KNOW WHAT YOU HAVE
LEFT OR WHAT YOU'VE SPENT?
214
00:11:11,404 --> 00:11:13,807
[VIGNA]
YOU CAN HAVE
THE MONEY SUPPLY
215
00:11:13,841 --> 00:11:15,275
CONTROLLED BY A COMPUTER.
216
00:11:15,308 --> 00:11:16,944
THAT'S ALL BITCOIN
REALLY IS.
217
00:11:16,977 --> 00:11:18,812
THE KEY POINT HERE IS THAT
218
00:11:18,846 --> 00:11:20,714
THIS A DISTRIBUTED LEDGER.
219
00:11:20,748 --> 00:11:22,215
THERE IS NO CENTRAL SERVER.
220
00:11:22,249 --> 00:11:23,751
ALL THE OTHER LEDGERS
THAT WE HAVE,
221
00:11:23,784 --> 00:11:25,719
ALL THE BANKING LEDGERS,
ALL COMPANY LEDGERS,
222
00:11:25,753 --> 00:11:28,455
THEY ALL SIT AND RESIDE
INSIDE THAT COMPANY,
223
00:11:28,488 --> 00:11:30,323
WHICH MEANS THEY HAVE
ONE POINT OF ATTACK.
224
00:11:30,357 --> 00:11:32,993
THEY CAN BE HACKED.
JP MORGAN WAS HACKED
225
00:11:33,026 --> 00:11:35,028
BY, YOU KNOW, THE CYBERTHIEVES
NOT SO LONG AGO.
226
00:11:35,062 --> 00:11:37,998
HOME DEPOT, TARGET,
WE'VE HAD ALL THESE COMPANIES
GET HACKED,
227
00:11:38,031 --> 00:11:42,002
PRECISELY BECAUSE THERE'S
ONE CENTRAL REPOSITORY
OF INFORMATION.
228
00:11:42,035 --> 00:11:45,138
THE BITCOIN LEDGER RESIDES,
ON, YOU KNOW,
229
00:11:45,172 --> 00:11:46,807
THOUSANDS OF COMPUTERS.
230
00:11:46,840 --> 00:11:48,208
YOU CAN'T HACK THAT.
231
00:11:48,241 --> 00:11:50,110
EVERY SINGLE TRANSACTION
IS RECORDED,
232
00:11:50,143 --> 00:11:51,879
AND ONCE IT IS RECORDED
IN THE BLOCKCHAIN,
233
00:11:51,912 --> 00:11:53,947
IT IS THERE,
IT IS PERMANENT.
234
00:11:53,981 --> 00:11:56,984
IT CANNOT BE ALTERED.
IT CANNOT BE CHANGED,
SO THAT YOU CAN READ IT.
235
00:11:57,017 --> 00:11:59,219
NOW THE IDENTITIES
OF THE PEOPLE ARE ENCRYPTED.
236
00:11:59,252 --> 00:12:00,821
THE WALLETS ARE ENCRYPTED,
237
00:12:00,854 --> 00:12:03,056
SO YOU DON'T KNOW WHO
IS SPENDING THE MONEY,
238
00:12:03,090 --> 00:12:05,826
BUT YOU KNOW THAT EVERY
SINGLE BITCOIN OUT THERE
239
00:12:05,859 --> 00:12:07,861
HAS A HISTORY,
YOU KNOW WHERE IT'S BEEN,
240
00:12:07,895 --> 00:12:10,263
YOU KNOW THE DIFFERENT
ADDRESSES IT'S GONE BETWEEN.
241
00:12:12,933 --> 00:12:16,469
THE MOST IMPORTANT PIECES
OF THE BITCOIN INFRASTRUCTURE
242
00:12:16,503 --> 00:12:17,871
ARE THE MINERS.
243
00:12:17,905 --> 00:12:20,240
THESE ARE THE COMPUTERS
THAT ARE TASKED
244
00:12:20,273 --> 00:12:22,910
WITH MAINTAINING
THE LEDGER OF THE BLOCKCHAIN
245
00:12:22,943 --> 00:12:25,278
TO VERIFY THE INFORMATION,
TO UPDATE IT,
246
00:12:25,312 --> 00:12:27,447
TO MAKE SURE
THAT IT IS TRUSTWORTHY.
247
00:12:27,480 --> 00:12:29,950
SO HOW DO WE
INCENTIVIZE THEM TO DO SO?
248
00:12:29,983 --> 00:12:34,254
AS THEY ARE GOING
THROUGH THE PROCESS OF
CONFIRMING TRANSACTIONS,
249
00:12:34,287 --> 00:12:37,390
THEY ARE SIMULTANEOUSLY
BEING SUBJECTED TO
250
00:12:37,424 --> 00:12:40,260
A VERY, VERY DIFFICULT
COMPUTING TEST.
251
00:12:40,293 --> 00:12:43,797
THE BITCOIN CORE PROTOCOL
IS FORCING THEM
252
00:12:43,831 --> 00:12:46,166
TO LOOK FOR A NUMBER.
253
00:12:46,199 --> 00:12:48,268
ALL OF THESE MINERS
ARE ULTIMATELY COMPETING
254
00:12:48,301 --> 00:12:51,171
TO BE THE ONE THAT RECEIVES
THAT PAYOUT EVERY TEN MINUTES.
255
00:12:51,204 --> 00:12:53,206
BUT REALLY THAT'S
THE SECONDARY COMPONENT.
256
00:12:53,240 --> 00:12:55,208
THEY'RE REALLY BEING
REWARDED WITH BITCOIN,
257
00:12:55,242 --> 00:12:56,576
BUT WHAT IS
THE MORE IMPORTANT TASK
258
00:12:56,609 --> 00:12:58,478
IS THE VALIDATION
AND VERIFICATION
259
00:12:58,511 --> 00:13:01,882
OF TRANSACTIONS AND
THE MAINTAINING OF THE LEDGER.
260
00:13:01,915 --> 00:13:05,118
BITCOIN, IN BEING
THE FIRST TO ACHIEVE
261
00:13:05,152 --> 00:13:10,090
THIS HOLY GRAIL
OF DECENTRALIZED
VALUE EXCHANGE
262
00:13:10,123 --> 00:13:12,459
THAT TRANSFERS
THAT PROCESS OF TRUST
263
00:13:12,492 --> 00:13:16,163
TO A COLLECTIVE AGREEMENT
AROUND A BODY
264
00:13:16,196 --> 00:13:18,265
OF INDEPENDENT COMPUTERS
265
00:13:18,298 --> 00:13:21,068
WHO ARE COMPELLED
BY AN INCENTIVE SYSTEM
266
00:13:21,101 --> 00:13:22,435
TO MAINTAIN THAT CONSENSUS
267
00:13:22,469 --> 00:13:25,105
AND AFFIRM THE INFORMATION
TO BE CORRECT
268
00:13:25,138 --> 00:13:27,074
IS INCREDIBLY LIBERATING
BECAUSE IT MEANS
269
00:13:27,107 --> 00:13:28,942
THAT WE CAN DO IT WITHOUT
ALL THESE INTERMEDIARIES
270
00:13:28,976 --> 00:13:30,844
IN ALL
THESE DIFFERENT REALMS.
271
00:13:30,878 --> 00:13:33,881
THE MOST IMPORTANT THING BEHIND
BITCOIN IS NOT THE CURRENCY.
272
00:13:33,914 --> 00:13:36,516
THE KEY FACTOR
IS THE BLOCKCHAIN.
273
00:13:36,549 --> 00:13:38,285
[TUCKER]
NOBODY EXPECTED THIS.
274
00:13:38,318 --> 00:13:41,154
YOU KNOW, IN 2008,
VERY FEW PEOPLE CARED ABOUT IT.
275
00:13:41,188 --> 00:13:43,056
IT WAS JUST
THE COMPUTER SCIENTISTS
276
00:13:43,090 --> 00:13:46,126
AND THE SORT OF CODE GEEKS
THAT WERE REALLY INTERESTED.
277
00:13:49,562 --> 00:13:51,064
ALL OF MY COMMUNICATION
WITH SATOSHI
278
00:13:51,098 --> 00:13:55,635
WAS EVER VIA EITHER
THE BITCOIN TALK FORUMS,
279
00:13:55,668 --> 00:14:00,073
WHICH, ALL OF
THAT COMMUNICATION IS...
280
00:14:00,107 --> 00:14:05,345
PUBLIC, OR PRIVATE FORUM
MESSAGES OR PRIVATE EMAILS.
281
00:14:05,378 --> 00:14:07,280
SATOSHI WAS ALWAYS
ALL BUSINESS.
282
00:14:07,314 --> 00:14:09,950
IT WAS JUST ALWAYS
ABOUT THE CODE.
283
00:14:09,983 --> 00:14:11,952
MY VERY MESSAGE
TO SATOSHI,
284
00:14:11,985 --> 00:14:15,889
I ASKED HIM, "SO,
IS SATOSHI YOUR REAL NAME?
285
00:14:15,923 --> 00:14:17,157
WHAT HAVE YOU DONE BEFORE?
286
00:14:17,190 --> 00:14:18,525
CAN YOU TELL ME
A LITTLE BIT ABOUT YOURSELF?"
287
00:14:18,558 --> 00:14:20,627
AND HE JUST IGNORED
THAT COMPLETELY.
288
00:14:20,660 --> 00:14:22,129
BUT CAME BACK AND SAID,
"YOU KNOW,
289
00:14:22,162 --> 00:14:23,530
GREAT TO HAVE MORE
EXPERIENCED PROGRAMMERS
290
00:14:23,563 --> 00:14:25,532
HELPING OUT
WITH THE PROJECT."
291
00:14:25,565 --> 00:14:27,935
YOU KNOW, "HERE'S
A COUPLE OF PROBLEMS
THAT NEED TO BE SOLVED.
292
00:14:27,968 --> 00:14:29,302
MAYBE YOU CAN
HELP SOLVE THEM."
293
00:14:37,377 --> 00:14:39,246
[VOORHEES]
IN 2011,
294
00:14:39,279 --> 00:14:41,949
I WAS INTO BITCOIN
SORT OF JUST AS A HOBBY.
295
00:14:41,982 --> 00:14:44,417
I DIDN'T REALLY KNOW
WHAT TO DO IN IT YET.
296
00:14:44,451 --> 00:14:46,419
I WAS TRYING TO MEET
EVERYONE I COULD,
297
00:14:46,453 --> 00:14:48,555
FIGURE OUT WHAT PROJECTS
WOULD BE COOL TO WORK ON.
298
00:14:48,588 --> 00:14:51,992
I MET ROGER VER SORT
OF IN AUGUST OF THAT YEAR
299
00:14:52,025 --> 00:14:54,427
AND A FEW MONTHS LATER,
HE RECOMMENDED TO THIS GUY,
300
00:14:54,461 --> 00:14:56,129
CHARLIE SHREM,
WHO STARTED BITINSTANT
301
00:14:56,163 --> 00:14:57,664
THAT THE CHARLIE
SHOULD HIRE ME
302
00:14:57,697 --> 00:15:00,200
AS THE HEAD OF MARKETING
FOR BITINSTANT.
303
00:15:00,233 --> 00:15:02,002
[SHREM]
BITCOIN IS CASH
WITH WINGS.
304
00:15:02,035 --> 00:15:04,571
IT'S THE ABILITY TO BE ABLE
TO TAKE A LOCAL TRANSACTION
305
00:15:04,604 --> 00:15:06,974
AND DO IT GLOBALLY,
AND THAT'S WHY BITCOIN
306
00:15:07,007 --> 00:15:08,641
IS GONNA OVERTURN
THE FINANCIAL INFRASTRUCTURE.
307
00:15:08,675 --> 00:15:10,510
BITCOIN IS LIKE
THE LARGEST
308
00:15:10,543 --> 00:15:13,713
SOCIOECONOMIC EXPERIMENT
THE WORLD HAS EVER SEEN.
309
00:15:13,746 --> 00:15:15,715
[VOORHEES]
OUR CONVERSATIONS
WOULD RANGE FROM
310
00:15:15,748 --> 00:15:18,185
YOU KNOW,
THE MUNDANE AND PRACTICAL,
311
00:15:18,218 --> 00:15:19,719
LIKE HOW THE HELL
ARE WE GONNA GET
ANOTHER BANK ACCOUNT
312
00:15:19,752 --> 00:15:21,254
SINCE OUR CURRENT
BANK ACCOUNT'S
313
00:15:21,288 --> 00:15:22,555
PROBABLY GONNA GET
SHUT DOWN ANY DAY NOW?
314
00:15:22,589 --> 00:15:25,325
TO VERY HIGH-MINDED,
ASPIRATIONAL ONES,
315
00:15:25,358 --> 00:15:27,995
LIKE, IS THIS ACTUALLY
GONNA CHANGE THE WORLD
IN A GOOD WAY?
316
00:15:28,028 --> 00:15:29,662
ARE WE JUST A BUNCH
OF CRAZY PEOPLE
317
00:15:29,696 --> 00:15:31,231
WHO DON'T KNOW WHAT
THE HELL WE'RE TALKING ABOUT,
318
00:15:31,264 --> 00:15:33,700
OR ARE WE ACTUALLY
STARTING TO
319
00:15:33,733 --> 00:15:36,369
INITIATE AN INDUSTRY
WHICH, IN HINDSIGHT,
320
00:15:36,403 --> 00:15:37,637
WILL LOOK OBVIOUS
TO EVERYONE,
321
00:15:37,670 --> 00:15:39,572
BUT, YOU KNOW,
RIGHT NOW DOES NOT?
322
00:15:41,508 --> 00:15:43,376
[CASEY]
CHARLIE SHREM WAS,
AT THAT STAGE,
323
00:15:43,410 --> 00:15:46,113
A FAIRLY HIGH-PROFILE FIGURE
IN THE BITCOIN COMMUNITY.
324
00:15:46,146 --> 00:15:48,181
THE VICE CHAIRMAN
OF THE BITCOIN FOUNDATION
325
00:15:48,215 --> 00:15:51,451
AND YOU KNOW, ONE OF THESE
BITCOIN MILLIONAIRES
326
00:15:51,484 --> 00:15:53,453
WHO'D MADE A LOT OF MONEY
VERY QUICKLY.
327
00:15:53,486 --> 00:15:56,289
AND REALLY PLAYED
AN IMPORTANT ROLE
IN THE INFRASTRUCTURE
328
00:15:56,323 --> 00:15:59,159
OF MANAGING THE MOVEMENT
OF FUNDS AROUND THE SYSTEM
329
00:15:59,192 --> 00:16:01,361
IN THAT EARLY
RUDIMENTARY PHASE.
330
00:16:02,362 --> 00:16:04,131
[MAN]
632 BID!
331
00:16:04,164 --> 00:16:08,035
654 OFFER IN THE NEW YORK
CASH MARKET FOR BITCOIN.
332
00:16:08,068 --> 00:16:12,639
BUYERS RIGHT NOW
WILL PAY $632 CASH
ON THE SPOT.
333
00:16:15,575 --> 00:16:18,378
WHO'S NEXT FOR THE BITCOIN?
YOU WANT TO KNOW
WHAT BITCOIN IS?
334
00:16:22,449 --> 00:16:25,518
YOU KNOW WHAT I PREFER?
I PREFER DOLLARS.
335
00:16:36,763 --> 00:16:38,398
IF YOU WANT TO GO ON
DOWN TO 40 BROAD,
336
00:16:38,431 --> 00:16:41,301
RIGHT NEXT DOOR TO
THE STOCK EXCHANGE THERE,
337
00:16:41,334 --> 00:16:43,703
TO THE NEW YORK
BITCOIN CENTER,
338
00:16:43,736 --> 00:16:46,139
YOU CAN BUY AND SELL
ALL THE TIME.
339
00:16:55,582 --> 00:16:58,085
- YOU HAVE A TABLE
IN THE MIDDLE.
- YEAH.
340
00:16:58,118 --> 00:17:00,620
JUST ONE SMALL TABLE,
ROUND.
341
00:17:00,653 --> 00:17:05,558
AND I HAVE FLOWERS,
LIKE A FLOWER ARRANGEMENT.
342
00:17:05,592 --> 00:17:07,827
- A VERY NICE
FLOWER ARRANGEMENT.
- BITCOIN FLOWERS?
343
00:17:07,860 --> 00:17:10,163
BITCOIN FLOWERS.
BITCOIN FLOWERS WOULD BE
344
00:17:10,197 --> 00:17:13,133
WHITE LILY,
PURPLE AND ORANGE.
345
00:17:13,166 --> 00:17:14,767
JUST RIGHT HERE,
THREE COLORS.
346
00:17:17,404 --> 00:17:21,241
WE'RE PUTTING TOGETHER
THE FIRST BITCOIN CENTER
347
00:17:21,274 --> 00:17:22,675
HERE IN NEW YORK CITY,
348
00:17:22,709 --> 00:17:25,345
RIGHT NEXT DOOR TO
THE NEW YORK STOCK EXCHANGE
349
00:17:25,378 --> 00:17:28,115
BITCOIN IS A NEW SPACE,
350
00:17:28,148 --> 00:17:32,385
AND MANY OF THE RULES
AND REGULATIONS HAVEN'T
BEEN IMPOSED YET.
351
00:17:32,419 --> 00:17:35,622
BUT WE WILL OPEN
ONE DAY SOON,
352
00:17:35,655 --> 00:17:39,526
AFTER THE LAWYERS
DO THEIR JOB,
353
00:17:39,559 --> 00:17:43,496
A LIVE DIGITAL CURRENCY
EXCHANGE.
354
00:17:43,530 --> 00:17:46,133
WHAT'S HAPPENING HERE
IS A FUSION BETWEEN
355
00:17:46,166 --> 00:17:49,702
WALL STREET AND BITCOIN,
HOPEFULLY.
356
00:17:51,238 --> 00:17:53,773
[POPPER]
SATOSHI SEEMED
TO ACKNOWLEDGE
357
00:17:53,806 --> 00:17:57,610
THAT IT WOULD BE HARD
FOR BITCOIN TO DEVELOP
IN ANY WAY
358
00:17:57,644 --> 00:18:02,282
IN WHICH IT WASN'T INTERACTING
WITH THE REGULAR ECONOMY
359
00:18:02,315 --> 00:18:04,584
OF DOLLARS AND EUROS.
360
00:18:04,617 --> 00:18:06,519
THE PROBLEM
WITH EXCHANGES IS
361
00:18:06,553 --> 00:18:09,722
THAT THEY TOOK YOU BACK
TO THIS OLD WORLD
362
00:18:09,756 --> 00:18:12,425
THAT BITCOIN WAS REALLY
TRYING TO GET AWAY FROM.
363
00:18:12,459 --> 00:18:15,862
AS SOON AS YOU MOVE
BACK TO AN EXCHANGE,
364
00:18:15,895 --> 00:18:18,465
YOU'RE MOVING BACK
TO A WORLD
365
00:18:18,498 --> 00:18:23,436
IN WHICH SOME THIRD PARTY
HAS ALL THIS PERSONAL DATA
ON YOU,
366
00:18:23,470 --> 00:18:24,737
HAS ALL OF YOUR MONEY,
367
00:18:24,771 --> 00:18:26,873
HAS ALL OF THE SECURITY
VULNERABILITIES,
368
00:18:26,906 --> 00:18:29,276
AND REALLY HAS NONE
OF THOSE STRENGTHS
369
00:18:29,309 --> 00:18:34,381
THAT BITCOIN
WAS DESIGNED TO PROVIDE.
370
00:18:34,414 --> 00:18:36,416
JED MCCALEB
CREATED MT. GOX,
371
00:18:36,449 --> 00:18:38,318
ESSENTIALLY
ON A LARK ONE NIGHT
372
00:18:38,351 --> 00:18:42,455
BECAUSE HE COULDN'T
BUY BITCOINS AS QUICKLY
AS HE WANTED TO.
373
00:18:42,489 --> 00:18:44,857
[CASEY]
AND INTERESTINGLY,
HE DID IT BY STARTING
374
00:18:44,891 --> 00:18:47,494
WITH A URL
THAT HE'D PREVIOUSLY USED
375
00:18:47,527 --> 00:18:50,397
TO RUN MAGIC CARD
TRADING SITES.
376
00:18:50,430 --> 00:18:53,266
SO YOU GET AN IDEA
ABOUT WHERE SOMEBODY'S IDEAS
ARE COMING FROM
377
00:18:53,300 --> 00:18:56,369
AND HOW REALLY KIND OF
RUDIMENTARY SOME OF THEM WERE.
378
00:18:56,403 --> 00:18:59,539
[POPPER]
JED ESSENTIALLY THREW
THIS SITE TOGETHER,
379
00:18:59,572 --> 00:19:03,676
AND PUT IT ONLINE WITHOUT
TOO MUCH THOUGHT.
380
00:19:14,887 --> 00:19:18,725
JED ESSENTIALLY SOLD IT
TO THE FIRST PERSON HE FOUND.
381
00:19:18,758 --> 00:19:20,927
WHO WAS MARK KARPELES,
A FRENCH GUY
382
00:19:20,960 --> 00:19:22,595
WHO WAS LIVING IN TOKYO.
383
00:19:22,629 --> 00:19:24,964
HE REALLY KNEW
VERY LITTLE ABOUT MARK
384
00:19:24,997 --> 00:19:27,267
WHEN HE DECIDED
TO SELL IT TO HIM.
385
00:19:27,300 --> 00:19:29,602
AND ONCE HE TOOK IT OVER,
386
00:19:29,636 --> 00:19:32,272
IT BEGAN GROWING
MUCH MORE QUICKLY
387
00:19:32,305 --> 00:19:35,808
THAN MARK WAS EXPECTING
OR WAS PREPARED FOR.
388
00:19:46,719 --> 00:19:48,488
[VIGNA]
THERE ARE 21 MILLION BITCOINS
389
00:19:48,521 --> 00:19:50,357
PROGRAMMED INTO THE SYSTEM
THAT ARE GOING TO BE RELEASED.
390
00:19:50,390 --> 00:19:52,292
IT'S A SET NUMBER,
BUT WITHIN THAT,
391
00:19:52,325 --> 00:19:54,627
EVERY SINGLE BITCOIN
CAN BE DIVIDED UP
392
00:19:54,661 --> 00:19:56,829
INTO A HUNDRED MILLION
DIFFERENT PIECES
393
00:19:56,863 --> 00:19:59,899
SO THERE'S ROOM FOR IT
TO EXPAND AS THE USE EXPANDS,
394
00:19:59,932 --> 00:20:03,370
ESPECIALLY IN
THE EMERGING MARKETS,
IN THE DEVELOPING WORLD.
395
00:20:03,403 --> 00:20:05,572
THAT IS REALLY
THE MOST INTERESTING PLACE
396
00:20:05,605 --> 00:20:07,907
TO SEE
WHERE THIS THING GOES.
397
00:20:07,940 --> 00:20:10,910
SO IN MY POCKET I HAVE
A HUNDRED TRILLION
ZIMBABWE DOLLARS
398
00:20:10,943 --> 00:20:12,545
FROM THE RESERVE BANK
OF ZIMBABWE,
399
00:20:12,579 --> 00:20:14,514
JUST AS A REMINDER
OF WHAT HAPPENS
400
00:20:14,547 --> 00:20:16,716
IF OUR GOVERNMENTS
SCREW UP OUR MONEY.
401
00:20:16,749 --> 00:20:18,951
YOU KNOW, ZIMBABWE'S
A GOOD EXAMPLE
402
00:20:18,985 --> 00:20:23,290
OF A GOVERNMENT THAT LOST
THE TRUST OF THEIR PEOPLE,
403
00:20:23,323 --> 00:20:24,557
AND THEY LOST
THE TRUST OF THEIR PEOPLE
404
00:20:24,591 --> 00:20:25,792
BY PRINTING TOO MUCH MONEY
405
00:20:25,825 --> 00:20:28,695
AND CAUSING RUNAWAY
HYPERINFLATION.
406
00:20:28,728 --> 00:20:31,498
SO I THINK YOU WILL SEE PEOPLE
IN OTHER PARTS OF THE WORLD
407
00:20:31,531 --> 00:20:33,300
WHO'VE EXPERIENCED
HYPERINFLATION
408
00:20:33,333 --> 00:20:35,502
WHO'VE EXPERIENCED
BANK FAILURES.
409
00:20:35,535 --> 00:20:37,370
I THINK THOSE WILL BE
THE KIND OF PEOPLE
410
00:20:37,404 --> 00:20:41,541
WHO ARE LOOKING FOR SOMETHING--
SOMETHING NEW, RIGHT?
411
00:20:41,574 --> 00:20:43,843
THEY'RE WILLING
TO TAKE THE RISK.
412
00:20:43,876 --> 00:20:46,946
A LOT OF US
TAKE THE CAPACITY
TO SEND MONEY TO OTHERS,
413
00:20:46,979 --> 00:20:48,515
RECEIVE MONEY,
STORE MONEY
414
00:20:48,548 --> 00:20:51,050
AND DO IT ELECTRONICALLY
THESE DAYS FOR GRANTED
415
00:20:51,083 --> 00:20:54,387
BECAUSE WE ARE AMONGST
THE LUCKY 50% OR SO
OF THE WORLD
416
00:20:54,421 --> 00:20:55,822
THAT HAVE BANK ACCOUNTS.
417
00:20:55,855 --> 00:20:58,625
BUT 2.5 BILLION ADULTS
IN THE WORLD
418
00:20:58,658 --> 00:21:00,660
DO NOT HAVE ACCESS
TO BANK ACCOUNTS.
419
00:21:00,693 --> 00:21:03,062
A TECHNOLOGY LIKE BITCOIN,
CRYPTOCURRENCY,
420
00:21:03,095 --> 00:21:08,401
HAS THE CAPACITY
TO BRING THOSE PEOPLE
INTO THE FINANCIAL SYSTEM,
421
00:21:08,435 --> 00:21:10,470
TO GIVE THEM THIS POWER
TO EFFECTIVELY HAVE
422
00:21:10,503 --> 00:21:12,839
WHAT YOU COULD ARGUE
IS A BANK IN THEIR CELL PHONE,
423
00:21:12,872 --> 00:21:14,507
A BANK IN THEIR POCKET.
424
00:21:14,541 --> 00:21:18,811
REALLY COULD OPEN UP COMMERCE
TO A LOT OF PEOPLE
425
00:21:18,845 --> 00:21:21,614
WHO ARE CURRENTLY
EXCLUDED FROM IT.
426
00:21:21,648 --> 00:21:25,518
[ANDRESEN]
SOMEBODY WHO IS MAYBE
WORKING IN ONE COUNTRY
427
00:21:25,552 --> 00:21:28,488
AND, YOU KNOW, THEY WANT
TO SEND MONEY BACK HOME.
428
00:21:28,521 --> 00:21:31,724
AND RIGHT NOW,
LIKE, WESTERN UNION
IS A BIG WAY
429
00:21:31,758 --> 00:21:33,593
THAT PEOPLE DO REMITTANCES.
430
00:21:33,626 --> 00:21:35,562
FROM A WESTERN UNION
PERSPECTIVE,
431
00:21:35,595 --> 00:21:38,365
WE SERVE CLIENTS IN MANY
DIFFERENT LOCATIONS
AROUND THE GLOBE,
432
00:21:38,398 --> 00:21:39,966
AND PRIMARILY
FOR REMITTANCES.
433
00:21:39,999 --> 00:21:43,002
WESTERN UNION
SERVES TYPICALLY
AN UNBANKED CUSTOMER,
434
00:21:43,035 --> 00:21:46,639
A CUSTOMER WHO IS
EITHER A MIGRANT WORKER,
435
00:21:46,673 --> 00:21:48,975
OR AN INDIVIDUAL WHO DOESN'T
FEEL COMFORTABLE
436
00:21:49,008 --> 00:21:50,677
IN THE FINANCIAL SERVICES
SECTOR.
437
00:21:50,710 --> 00:21:52,779
[ANDRESEN]
AND THE PROBLEM
WITH REMITTANCES
438
00:21:52,812 --> 00:21:54,681
IS THEY'RE REALLY EXPENSIVE.
439
00:21:54,714 --> 00:21:57,450
SO IF I'M SENDING $100
BACK HOME,
440
00:21:57,484 --> 00:22:00,387
I MAY END UP SPENDING
$5.00 OR $10.00
441
00:22:00,420 --> 00:22:05,057
JUST ON FEES
TO GET THAT MONEY
BACK TO MY FAMILY.
442
00:22:05,091 --> 00:22:07,927
THAT'S A HUGE PERCENTAGE
IF YOU'RE POOR AND WORKING.
443
00:22:07,960 --> 00:22:11,130
SO SINCE BITCOIN
DOESN'T CARE ABOUT BORDERS,
444
00:22:11,163 --> 00:22:13,500
I COULD JUST SEND BITCOIN
TO ANOTHER COUNTRY,
445
00:22:13,533 --> 00:22:15,802
AND IF MY FAMILY
IN THAT OTHER COUNTRY
446
00:22:15,835 --> 00:22:17,136
HAS SOME WAY OF SPENDING
THAT BITCOIN
447
00:22:17,169 --> 00:22:18,771
OR HAS SOME WAY OF TRANS--
448
00:22:18,805 --> 00:22:21,874
OF EXCHANGING THAT BITCOIN
INTO THE LOCAL CURRENCY,
449
00:22:21,908 --> 00:22:26,479
THEN IT'S JUST
QUICKER AND CHEAPER
AND MORE CONVENIENT.
450
00:22:26,513 --> 00:22:28,515
AND A LOT OF PEOPLE THINK
THAT REMITTANCES
451
00:22:28,548 --> 00:22:31,418
WILL BE ONE OF THE REALLY BIG
FIRST USES FOR BITCOIN.
452
00:22:32,619 --> 00:22:35,522
THE ONE CHALLENGE THERE
IS WE DEAL WITH
453
00:22:35,555 --> 00:22:39,158
YOU KNOW, AT OUR COMPANY,
750 TRANSACTIONS, PEAK,
A SECOND.
454
00:22:39,191 --> 00:22:41,127
AND THOSE HAPPEN INSTANTLY.
455
00:22:41,160 --> 00:22:43,830
IF YOU LOOK AT A BLOCKCHAIN,
YOU HAVE TO WAIT
FOR VERIFICATIONS,
456
00:22:43,863 --> 00:22:45,498
AND IF YOU DO
A RECENT TEST,
457
00:22:45,532 --> 00:22:47,667
IT TAKES ABOUT 15 MINUTES
FOR EVERY TRANSACTION
458
00:22:47,700 --> 00:22:49,702
TO BE VALIDATED
BY THE NETWORK.
459
00:22:49,736 --> 00:22:51,170
THAT DOESN'T SCALE,
460
00:22:51,203 --> 00:22:53,139
SO IT HAS
ITS CHALLENGES AS WELL.
461
00:23:00,813 --> 00:23:03,583
WIKILEAKS, WHICH SOLICITS
AND PUBLISHES
462
00:23:03,616 --> 00:23:05,418
SECRETS
AND SUPPRESSED MATERIAL
463
00:23:05,452 --> 00:23:07,520
FROM WHISTLEBLOWERS
AROUND THE WORLD,
464
00:23:07,554 --> 00:23:09,622
HAS BEEN UNDER CYBER ATTACK
FROM GOVERNMENTS
465
00:23:09,656 --> 00:23:10,990
THAT WANT TO SHUT IT DOWN.
466
00:23:11,023 --> 00:23:12,792
[NEWSCASTER]
PAYPAL IS THE LATEST BUSINESS
467
00:23:12,825 --> 00:23:14,627
TO BREAK TIES WITH WIKILEAKS,
468
00:23:14,661 --> 00:23:16,529
BUT THE WHISTLE-BLOWING
WEBSITE
469
00:23:16,563 --> 00:23:19,065
DEDICATED TO
PUBLISHING CLASSIFIED
GOVERNMENT DOCUMENTS
470
00:23:19,098 --> 00:23:20,900
STILL CONTINUES
TO SEEK FUNDING,
471
00:23:20,933 --> 00:23:24,437
WHILE CROSSING OUT PAYPAL
AS ONE METHOD OF PAYMENT.
472
00:23:24,471 --> 00:23:27,474
IN ORDER TO INSURE
OUR FUTURE SURVIVAL,
473
00:23:27,507 --> 00:23:30,910
WIKILEAKS IS NOW FORCED
TO TEMPORARILY SUSPEND
474
00:23:30,943 --> 00:23:33,179
ALL PUBLISHING OPERATIONS
475
00:23:33,212 --> 00:23:36,749
IN ORDER TO DIRECT
ALL OUR RESOURCES
476
00:23:36,783 --> 00:23:40,787
INTO FIGHTING THE BLOCKADE
AND RAISING FUNDS.
477
00:23:40,820 --> 00:23:43,456
THE WIKILEAKS SCANDAL
SEEMED TO PROVIDE
478
00:23:43,490 --> 00:23:45,024
AN OPPORTUNITY
FOR BITCOIN.
479
00:23:45,057 --> 00:23:47,860
AT THE TIME,
THE BIG BANKS AND CREDIT CARDS
480
00:23:47,894 --> 00:23:50,563
STOPPED PROCESSING PAYMENTS
FOR WIKILEAKS,
481
00:23:50,597 --> 00:23:53,733
AND SOME PEOPLE THOUGHT THAT
BITCOIN WOULD PROVIDE A WAY
482
00:23:53,766 --> 00:23:57,604
TO SEND DONATIONS
TO WIKILEAKS.
483
00:24:05,011 --> 00:24:09,248
YOU COULD CERTAINLY
SEE IN THE HUBBUB
AROUND WIKILEAKS
484
00:24:09,281 --> 00:24:11,751
THAT SATOSHI
WAS STILL SOMEBODY
485
00:24:11,784 --> 00:24:14,921
WHO WAS VERY PARANOID
ABOUT THE GOVERNMENT,
486
00:24:14,954 --> 00:24:18,124
AND THE GOVERNMENT COMING IN
AND TAKING TOO CLOSE A LOOK
487
00:24:18,157 --> 00:24:19,592
AT THE BITCOIN PROJECT.
488
00:24:19,626 --> 00:24:21,260
AND YOU COULD ALSO SEE
THAT SATOSHI,
489
00:24:21,293 --> 00:24:23,029
I THINK, REALIZED
AT THIS POINT
490
00:24:23,062 --> 00:24:27,033
THAT BITCOIN WAS STILL
YOUNG SOFTWARE
491
00:24:27,066 --> 00:24:29,736
AND THE KINKS HADN'T BEEN
WORKED OUT YET.
492
00:24:29,769 --> 00:24:32,004
[ANDRESEN]
IN, I THINK, LATE 2010,
493
00:24:32,038 --> 00:24:35,207
HE ASKED ME IF IT'D BE OKAY
IF HE PUT MY EMAIL ADDRESS
494
00:24:35,241 --> 00:24:37,043
ON THE BITCOIN.ORG
HOME PAGE,
495
00:24:37,076 --> 00:24:40,780
'CAUSE HE HAD BEEN
THE PRIMARY CONTACT
FOR PEOPLE.
496
00:24:40,813 --> 00:24:42,615
AND I SAID, "SURE."
497
00:24:42,649 --> 00:24:44,717
HE WENT AHEAD
AND CHANGED THE WEB PAGE,
498
00:24:44,751 --> 00:24:47,720
BUT WHAT HE DID IS
HE LEFT HIS NAME THERE,
499
00:24:47,754 --> 00:24:50,557
BUT HE TOOK AWAY
HIS EMAIL ADDRESS.
500
00:24:50,590 --> 00:24:53,593
AND SO IT WAS JUST ME
AND MY EMAIL ADDRESS
501
00:24:53,626 --> 00:24:56,729
WHO WAS SUDDENLY GETTING
ALL OF THE ATTENTION.
502
00:24:56,763 --> 00:24:59,566
I THINK THAT WAS SATOSHI'S WAY
OF KIND OF SAYING,
503
00:24:59,599 --> 00:25:01,868
"YOU'RE THE LEADER
OF THE PROJECT NOW."
504
00:25:01,901 --> 00:25:04,203
THERE WAS
ONE PARTICULAR EMAIL
505
00:25:04,236 --> 00:25:06,573
WHERE HE TOLD ME
THAT HE WAS GONNA STEP AWAY
FROM THE PROJECT
506
00:25:06,606 --> 00:25:08,975
AND DO SOMETHING ELSE.
HE NEVER TOLD ME WHAT ELSE
507
00:25:09,008 --> 00:25:11,811
HE'S GONNA DO
OR THAT HE IS DOING.
508
00:25:11,844 --> 00:25:16,015
I HAD JUST BEEN INVITED
TO GIVE A TALK AT THE CIA.
509
00:25:16,048 --> 00:25:17,850
AND I TOLD SATOSHI THAT
I ACCEPTED THE INVITATION
510
00:25:17,884 --> 00:25:20,252
TO GO SPEAK AT THE CIA.
511
00:25:20,286 --> 00:25:22,989
[POPPER]
AFTER HE SENT
THAT EMAIL TO SATOSHI
512
00:25:23,022 --> 00:25:25,792
TELLING HIM
THAT HE WAS PLANNING
ON GOING TO THE CIA,
513
00:25:25,825 --> 00:25:27,894
HE NEVER HEARD
FROM SATOSHI AGAIN,
514
00:25:27,927 --> 00:25:32,699
AND THAT WAS
ESSENTIALLY THE LAST TIME
ANYBODY HEARD FROM SATOSHI.
515
00:25:32,732 --> 00:25:35,167
[VIGNA]
YOU VERY QUICKLY GET CAUGHT UP
IN THE QUESTION
516
00:25:35,201 --> 00:25:37,269
OF WHO IS
SATOSHI NAKAMOTO?
517
00:25:37,303 --> 00:25:39,606
WHERE DID THIS COME FROM?
WHO IS THIS PERSON?
518
00:25:39,639 --> 00:25:41,007
I MEAN, THIS IS THE 2000S.
519
00:25:41,040 --> 00:25:42,308
INFORMATION IS OUT THERE,
EVERYTHING.
520
00:25:42,341 --> 00:25:44,143
EVERYONE KNOWS EVERYTHING
ABOUT EVERYBODY.
521
00:25:44,176 --> 00:25:45,845
HOW CAN THERE POSSIBLY
BE A PERSON
522
00:25:45,878 --> 00:25:47,847
THAT NOBODY KNOWS
WHO THIS GUY IS?
523
00:25:47,880 --> 00:25:50,983
BUT THERE IS A PERSON--
AT LEAST I THINK IT'S A PERSON.
524
00:25:51,017 --> 00:25:52,251
IT MIGHT BE A GROUP--
525
00:25:52,284 --> 00:25:53,886
WHO NOBODY KNOWS
WHO THIS GUY IS.
526
00:25:53,920 --> 00:25:58,224
AND HE KIND OF APPEARS
OUT OF NOWHERE IN 2008
527
00:25:58,257 --> 00:26:00,292
ON THESE CRYPTOGRAPHY
EMAIL LISTS,
528
00:26:00,326 --> 00:26:02,228
WITH THIS SYSTEM
CALLED BITCOIN.
529
00:26:02,261 --> 00:26:04,196
HE'S VERY ACTIVE
IN THE EARLY YEARS,
530
00:26:04,230 --> 00:26:05,632
THERE'S A LOT OF
BACK AND FORTH
531
00:26:05,665 --> 00:26:07,634
WITH HIM COMMUNICATING
WITH PEOPLE.
532
00:26:07,667 --> 00:26:10,136
[GREENBERG]
IT SEEMED LIKE MOST PEOPLE
KIND OF WROTE HIM OFF
533
00:26:10,169 --> 00:26:13,272
AS KIND OF LIKE
A DELUSIONS-OF-GRANDEUR
KIND OF SCHEME.
534
00:26:13,305 --> 00:26:15,074
HAL FINNEY,
ON THE OTHER HAND,
535
00:26:15,107 --> 00:26:18,310
SEEMED TO BE REALLY INTERESTED
RIGHT FROM THE BEGINNING.
536
00:26:18,344 --> 00:26:20,112
HE WAS A CRYPTO-IDEALIST.
537
00:26:20,146 --> 00:26:22,682
LIKE, HE WAS NOT AS
KIND OF CYNICAL
538
00:26:22,715 --> 00:26:24,684
AS MANY OF
THE OTHER CYPHERPUNKS
539
00:26:24,717 --> 00:26:25,985
SO HE GOT REALLY
INTO THIS.
540
00:26:26,018 --> 00:26:27,920
HE STARTED TALKING
TO SATOSHI NAKAMOTO,
541
00:26:27,954 --> 00:26:32,959
WHO HE SAID SEEMED LIKE
SOME YOUNG JAPANESE
AMERICAN CODER.
542
00:26:32,992 --> 00:26:37,196
HAL FINNEY WAS THE FIRST GUY
TO WORK WITH NAKAMOTO.
543
00:26:37,229 --> 00:26:38,264
HE WAS A CRYPTOGRAPHER.
544
00:26:38,297 --> 00:26:39,899
SOON AS NAKAMOTO
RELEASED IT,
545
00:26:39,932 --> 00:26:41,901
HE WAS ONE OF THE FIRST PEOPLE
TO EMAIL HIM BACK AND SAY,
546
00:26:41,934 --> 00:26:43,903
"HEY, THIS IS INTERESTING.
I'D LIKE TO WORK WITH YOU."
547
00:26:43,936 --> 00:26:45,638
AND IN THE FIRST WEEKS
OF BITCOIN
548
00:26:45,672 --> 00:26:46,873
HE WORKED WITH HIM
BACK AND FORTH
549
00:26:46,906 --> 00:26:48,340
SETTING UP THE SYSTEM.
550
00:26:48,374 --> 00:26:51,177
AND SATOSHI NAKAMOTO
ENDED UP SENDING HAL FINNEY
551
00:26:51,210 --> 00:26:54,280
THE FIRST EVER BITCOIN
TRANSACTION.
552
00:26:54,313 --> 00:26:57,183
[POPPER]
ANY DISCUSSION
OF SATOSHI'S IDENTITY
553
00:26:57,216 --> 00:27:00,219
HAS TO GO BACK TO THE FACT
THAT BITCOIN
554
00:27:00,252 --> 00:27:04,390
WAS BASED ON THIS
SMALL NUMBER OF PROJECTS
BACK IN THE 1990S
555
00:27:04,423 --> 00:27:07,326
THAT ONLY A HANDFUL
OF PEOPLE KNEW ABOUT,
556
00:27:07,359 --> 00:27:10,663
LIKE HASHCASH
AND BIT GOLD AND B MONEY,
557
00:27:10,697 --> 00:27:15,101
AND SO YOU END UP WITH
A PRETTY SMALL GROUP OF PEOPLE
558
00:27:15,134 --> 00:27:19,238
WHO WOULD HAVE KNOWN
ABOUT THESE PROJECTS.
559
00:27:19,271 --> 00:27:21,340
[VIGNA]
PEOPLE THOUGH CHAUM,
DAVID CHAUM, WAS, YOU KNOW--
560
00:27:21,373 --> 00:27:22,975
EVERYBODY IN
THE CYPHERPUNK MOVEMENT
561
00:27:23,009 --> 00:27:24,176
AT ONE POINT OR ANOTHER,
THEY'VE SAID,
562
00:27:24,210 --> 00:27:25,878
"WELL, HE MUST HAVE BEEN
SATOSHI."
563
00:27:25,912 --> 00:27:27,413
THEY'VE ALL COME OUT
AND DENIED IT.
564
00:27:27,446 --> 00:27:29,415
PROBABLY SOMEBODY
WHO STARTED OUT IN THE '90S,
565
00:27:29,448 --> 00:27:31,217
IN CALIFORNIA,
WITH THE CYPHERPUNKS.
566
00:27:31,250 --> 00:27:34,253
SOMEBODY WHO WAS VERY,
VERY GOOD AT CRYPTOGRAPHY
567
00:27:34,286 --> 00:27:37,323
WHO UNDERSTANDS ENCRYPTION,
AND HAS DONE A WONDERFUL JOB
568
00:27:37,356 --> 00:27:42,094
OF JUST SEPARATING BITCOIN
FROM ANYTHING THAT CAN
IDENTIFY HIM.
569
00:27:43,429 --> 00:27:45,431
[POPPER]
I THINK FOR BITCOIN'S SAKE,
570
00:27:45,464 --> 00:27:48,367
THAT CONTINUING ANONYMITY
OF SATOSHI
571
00:27:48,400 --> 00:27:51,270
HAS ENDED UP BEING
A REALLY GOOD THING,
572
00:27:51,303 --> 00:27:54,941
BECAUSE PEOPLE WHO
HAVE GOTTEN INVOLVED IN IT
573
00:27:54,974 --> 00:27:59,111
HAVE BEEN ABLE TO WRITE
THEIR OWN IDEAS AND DREAMS
574
00:27:59,145 --> 00:28:00,847
ONTO THIS TECHNOLOGY,
575
00:28:00,880 --> 00:28:02,782
AND THERE WAS NOBODY
THERE TO SAY,
576
00:28:02,815 --> 00:28:04,784
"NO, THAT'S NOT
WHAT I MEANT."
577
00:28:04,817 --> 00:28:06,819
[SAXOPHONE PLAYING]
578
00:28:10,422 --> 00:28:11,958
IN THE EARLY, EARLY DAYS,
579
00:28:11,991 --> 00:28:14,026
THE FIRST GROUP WAS
REALLY JUST A BUNCH OF
580
00:28:14,060 --> 00:28:17,864
MORE OR LESS
TECH-MINDED CODERS.
581
00:28:41,888 --> 00:28:43,289
[VIGNA]
THEN YOU HAD THE LIBERTARIANS
COME ON BOARD,
582
00:28:43,322 --> 00:28:45,057
WHO SAW IT THROUGH
A POLITICAL LENS,
583
00:28:45,091 --> 00:28:47,526
I'M EXCITED TO BE
A LITTLE BIT OF A PART OF IT
584
00:28:47,559 --> 00:28:50,462
WITH ALLOWING
AND ACCEPTING BITCOIN.
585
00:28:50,496 --> 00:28:52,899
[VIGNA]
AND THEN YOU HAD THESE
TWO GROUPS WORKING TOGETHER
586
00:28:52,932 --> 00:28:54,400
AND THEY OVERLAPPED TOO,
587
00:28:54,433 --> 00:28:56,335
AND THE TIMING WAS VERY GOOD
588
00:28:56,368 --> 00:28:59,471
BECAUSE THE EXISTING SYSTEM
WAS IN UTTER DISREPAIR.
589
00:28:59,505 --> 00:29:01,841
IT WAS LIKE A MATCH
TO A PILE OF WOOD
590
00:29:01,874 --> 00:29:03,442
WITH GASOLINE
POURED ON TOP OF IT.
591
00:29:03,475 --> 00:29:06,846
AND THE WHOLE THING KIND OF
REALLY GOES VIRAL AND TAKES OFF,
592
00:29:06,879 --> 00:29:11,083
AND THEN YOU HAVE THE SUITS,
THE VC MONEY,
593
00:29:11,117 --> 00:29:12,484
AND IT WAS
VERY SMALL AT FIRST,
594
00:29:12,518 --> 00:29:14,453
JUST A COUPLE OF GUYS
OUT IN SILICON VALLEY
595
00:29:14,486 --> 00:29:18,090
WHO RAN INTO BITCOIN GUYS
AT COFFEE HOUSES
596
00:29:18,124 --> 00:29:20,426
AND YOU STARTED HAVING
THIS MESHING OF CONVERSATIONS.
597
00:29:20,459 --> 00:29:22,461
ONCE SILICON VALLEY
GETS ON BOARD,
598
00:29:22,494 --> 00:29:25,131
THAT WHOLE DYNAMIC
STARTS TO TAKE OFF.
599
00:29:25,164 --> 00:29:27,366
SO NOW YOU HAVE
THE TECH-MINDED CODERS,
600
00:29:27,399 --> 00:29:29,468
THE LIBERTARIANS,
THE COUNTER-CULTURE PEOPLE,
601
00:29:29,501 --> 00:29:31,003
THE VC, SILICON VALLEY,
602
00:29:31,037 --> 00:29:34,140
AND YOU HAVE THIS ENTIRE
GREAT MISHMASH OF PEOPLE
603
00:29:34,173 --> 00:29:35,407
COMING TOGETHER.
604
00:29:35,441 --> 00:29:37,076
YOU HAD A NETWORK EFFECT.
605
00:29:37,109 --> 00:29:38,477
THE MORE PEOPLE
THAT GOT INVOLVED,
606
00:29:38,510 --> 00:29:40,479
THE STRONGER THE NETWORK GOT,
607
00:29:40,512 --> 00:29:43,415
AND THE MORE IT GREW
AND IT REALLY STARTED GROWING
ON ITSELF.
608
00:29:43,449 --> 00:29:46,585
AND IN 2013 ESPECIALLY,
609
00:29:46,618 --> 00:29:49,889
YOU LITERALLY SEE
THIS THING MUSHROOM.
610
00:29:49,922 --> 00:29:52,925
THE THING WAS JUST GROWING,
GROWING AND GROWING
AND GROWING
611
00:29:52,959 --> 00:29:55,294
AS MORE AND MORE PEOPLE
GOT INVOLVED.
612
00:29:58,464 --> 00:30:02,101
I THINK MOST BITCOIN
COMPANIES AT THE TIME
613
00:30:02,134 --> 00:30:06,272
KNEW THAT A BIG PART
OF THE MARKET FOR BITCOINS
614
00:30:06,305 --> 00:30:09,241
WAS PEOPLE BUYING DRUGS
ON SILK ROAD
615
00:30:09,275 --> 00:30:11,077
WHO NEEDED BITCOINS
TO DO THAT.
616
00:30:11,110 --> 00:30:12,945
THE BIG BANG MOMENT
FOR BITCOIN
617
00:30:12,979 --> 00:30:14,413
WAS THE SILK ROAD.
618
00:30:14,446 --> 00:30:17,884
WHAT ROSS ULBRICHT DID
BY CREATING THE SILK ROAD
619
00:30:17,917 --> 00:30:21,220
WAS HE TOOK THIS
BY NO MEANS COMMON
620
00:30:21,253 --> 00:30:23,422
BUT USABLE CRYPTOCURRENCY
CALLED BITCOIN
621
00:30:23,455 --> 00:30:25,557
AND HE MARRIED IT
WITH A STREAMLINED,
622
00:30:25,591 --> 00:30:27,426
WORKABLE USER INTERFACE
623
00:30:27,459 --> 00:30:30,863
THAT WAS A FREE MARKET
THAT COULD SELL ANYTHING.
624
00:30:32,464 --> 00:30:35,367
WHAT WOULD HAPPEN
IF PEOPLE WERE REALLY FREE
625
00:30:35,401 --> 00:30:38,170
TRULY FREE TO TRADE
WHAT THEY WANTED TO?
626
00:30:38,204 --> 00:30:42,174
[WINTER]
ROSS DID HAVE
AN EXTREMELY RADICAL
627
00:30:42,208 --> 00:30:44,576
LIBERTARIAN VIEWPOINT,
628
00:30:44,610 --> 00:30:48,180
AND REALLY WANTED TO EXPERIMENT
WITH USING TECHNOLOGY
629
00:30:48,214 --> 00:30:51,317
TO CREATE FREE MARKETS
FOR PEOPLE.
630
00:30:51,350 --> 00:30:54,921
WHAT ROSS ULBRICHT
DID IS A COMBINATION
OF TOR AND BITCOIN.
631
00:30:54,954 --> 00:30:57,223
THAT WAS THE "AHA" MOMENT
THAT ROSS MUST HAVE HAD.
632
00:30:57,256 --> 00:31:00,659
[GREENBERG]
THE SILK ROAD WAS
BASICALLY THE FRUITION
633
00:31:00,692 --> 00:31:05,965
OF ALL THE CYPHERPUNK DREAMS,
THE CRYPTO-ANARCHISTS'
UTOPIA
634
00:31:05,998 --> 00:31:07,900
THAT THEY HAD IMAGINED
IN THE '90S,
635
00:31:07,934 --> 00:31:09,435
YOU KNOW, WAS REAL NOW.
636
00:31:09,468 --> 00:31:14,406
THIS WAS A PERFECTLY,
IN THEORY, ANONYMOUS WEBSITE,
637
00:31:14,440 --> 00:31:16,642
WITH PERFECTLY, IN THEORY,
ANONYMOUS MONEY
638
00:31:16,675 --> 00:31:19,278
USED TO BY ANY CONTRABANDS
IMAGINABLE.
639
00:31:19,311 --> 00:31:23,149
THE SILK ROAD WEBSITE
IS A PARTICULAR HEADACHE
FOR AUTHORITIES.
640
00:31:23,182 --> 00:31:25,617
IT'S A ANONYMOUS
ONLINE MARKETPLACE
641
00:31:25,651 --> 00:31:28,520
WHERE PEOPLE SELL DRUGS
THAT ARE POSTED TO CUSTOMERS
642
00:31:28,554 --> 00:31:31,190
ALL OVER THE WORLD.
643
00:31:31,223 --> 00:31:33,359
[CHRIS TARBELL]
CYBER INVESTIGATORS, YOU KNOW,
WHEN THERE'S A CRIME
644
00:31:33,392 --> 00:31:36,162
CAN KIND OF TRACE YOU BACK
BECAUSE YOU HAVE AN IP ADDRESS.
645
00:31:36,195 --> 00:31:37,263
IT'S LIKE
A TELEPHONE NUMBER,
646
00:31:37,296 --> 00:31:38,965
SO IF YOU CALL
ANOTHER COMPUTER
647
00:31:38,998 --> 00:31:41,200
THAT IP ADDRESS IS TRACKED.
648
00:31:41,233 --> 00:31:43,469
ON TOR, THAT'S TAKEN AWAY,
BECAUSE YOUR INFORMATION
649
00:31:43,502 --> 00:31:45,437
HOPS FROM COMPUTER
TO COMPUTER TO COMPUTER
650
00:31:45,471 --> 00:31:47,506
SO THERE'S NO WAY
TO TRACE YOU BACK
TO YOUR ORIGINAL ONE.
651
00:31:47,539 --> 00:31:52,144
TOR IS AN ANONYMOUS SYSTEM,
652
00:31:52,178 --> 00:31:54,213
SO IF YOU USE
THE TOR BROWSER,
653
00:31:54,246 --> 00:31:55,647
WHICH IT HAS A BROWSER.
654
00:31:55,681 --> 00:31:57,449
YOU CAN GO TO TOR
AND DOWNLOAD THEIR BROWSER,
655
00:31:57,483 --> 00:32:01,087
YOU CAN BROWSE WITH
SOME DEGREE OF SECURITY.
656
00:32:01,120 --> 00:32:04,090
SO THAT'S GREAT FOR PLUGGING
YOUR BANKING INFORMATION
657
00:32:04,123 --> 00:32:05,557
INTO A SITE
SO YOU DON'T GET HACKED.
658
00:32:05,591 --> 00:32:08,694
THE OTHER COMPONENT OF TOR,
WHICH HAS SIMILAR USES,
659
00:32:08,727 --> 00:32:10,396
IS CALLED
TOR HIDDEN SERVICES.
660
00:32:10,429 --> 00:32:14,200
TOR HIDDEN SERVICES
IS ACTUALLY, TO PUT IT SIMPLY,
661
00:32:14,233 --> 00:32:16,235
A URL THAT DOESN'T HAVE ".COM"
ON THE END OF IT.
662
00:32:16,268 --> 00:32:17,569
IT HAS ".ONION."
663
00:32:17,603 --> 00:32:19,438
AND THAT IS
ITS OWN LITTLE SPACE
664
00:32:19,471 --> 00:32:24,010
WHERE YOU CAN CREATE WEBSITES
AND YOU COULD FREELY TRANSACT
665
00:32:24,043 --> 00:32:26,645
WITHOUT OVERSIGHT
OR REGULATION.
666
00:32:26,678 --> 00:32:28,680
[TARBELL]
PEOPLE PUT WEBSITES ON THERE
667
00:32:28,714 --> 00:32:31,183
THAT ARE OUTSIDE OF
LAW ENFORCEMENT'S VIEW.
668
00:32:31,217 --> 00:32:33,119
THERE'S HACKERS FOR HIRE,
THERE'S MALWARE,
669
00:32:33,152 --> 00:32:35,154
THERE'S CREDIT CARD
DUMP SERVICES
670
00:32:35,187 --> 00:32:36,588
THERE'S A WHOLE BUNCH OF THEM.
671
00:32:36,622 --> 00:32:39,625
CHRIS TARBELL HAS ENDED UP
BEING, IN SOME WAYS,
672
00:32:39,658 --> 00:32:43,562
THE MOST IMPORTANT
FBI DIGITAL CRIME INVESTIGATOR
673
00:32:43,595 --> 00:32:45,231
OF THE LAST FEW YEARS.
674
00:32:45,264 --> 00:32:48,067
HE WAS THE ONE WHO TOOK
DOWN ANONYMOUS, ESSENTIALLY.
675
00:32:48,100 --> 00:32:51,203
SO WE DECIDED
TO START LOOKING AT SOME
OF THE SERVICES ON TOR,
676
00:32:51,237 --> 00:32:52,504
AND SILK ROAD
BEING ONE THEM,
677
00:32:52,538 --> 00:32:54,206
OTHER CASES,
THEY WOULD HIT TOR,
678
00:32:54,240 --> 00:32:56,008
AND THEY WOULD KIND OF THROW
THEIR HANDS IN THE AIR
679
00:32:56,042 --> 00:32:58,610
AND SAY "IT'S TOR, THERE'S NOT
MUCH WE CAN DO ABOUT IT."
680
00:32:58,644 --> 00:33:02,114
I FOUND IT INTERESTING
TO KIND OF TAKE A LOOK AT IT
AND TACKLE IT.
681
00:33:07,619 --> 00:33:09,155
[VOORHEES]
BITINSTANT WAS BASICALLY BORN
682
00:33:09,188 --> 00:33:10,789
BECAUSE IF YOU WANTED
TO MOVE YOUR DOLLARS
683
00:33:10,822 --> 00:33:12,158
INTO A BITCOIN EXCHANGE,
684
00:33:12,191 --> 00:33:13,725
IT TAKES AT LEAST
THREE DAYS.
685
00:33:13,759 --> 00:33:16,728
AND SINCE THE MAJOR EXCHANGE,
MT. GOX, WAS IN TOKYO
686
00:33:16,762 --> 00:33:18,530
IT COULD TAKE
A WEEK OR MORE.
687
00:33:18,564 --> 00:33:20,632
SO THAT'S REALLY
PROBLEMATIC,
688
00:33:20,666 --> 00:33:23,235
AND BASICALLY
CHARLIE FIGURED OUT THAT
689
00:33:23,269 --> 00:33:27,339
IF YOU JUST HELD A BALANCE
OF DOLLARS AT THE EXCHANGE,
690
00:33:27,373 --> 00:33:30,109
YOU COULD GO TO HIM AND SAY,
"CHARLIE, I'LL GIVE YOU $100.
691
00:33:30,142 --> 00:33:33,145
WILL YOU GIVE ME $100
OF CREDIT AT THE EXCHANGE?"
692
00:33:33,179 --> 00:33:35,481
AND YOU CAN LITERALLY
THEN HAVE YOUR DOLLARS
AT THE EXCHANGE
693
00:33:35,514 --> 00:33:38,450
IN TEN SECONDS
AS OPPOSED TO A WEEK.
694
00:33:38,484 --> 00:33:41,320
SO THAT'S HUGELY HELPFUL,
ESPECIALLY WHEN BITCOIN
IS SO VOLATILE
695
00:33:41,353 --> 00:33:43,389
AND YOU NEED
TO KNOW EXACTLY WHAT PRICE
YOU'RE GOING TO GET.
696
00:33:43,422 --> 00:33:45,057
CHARLIE WAS RAISING CAPITAL
697
00:33:45,091 --> 00:33:47,126
RIGHT AS, SORT OF,
I JOINED.
698
00:33:47,159 --> 00:33:49,661
DURING THAT PROCESS,
HE CAME ACROSS LOTS OF
699
00:33:49,695 --> 00:33:52,364
INTERESTED INVESTORS WHO WERE
STARTING TO GET A WHIFF
700
00:33:52,398 --> 00:33:56,168
THAT MAYBE THIS
BITCOIN THING WAS COOL.
701
00:33:56,202 --> 00:33:58,070
[CAMERON WINKLEVOSS]
WE HAD AN INTERESTING
DEBATE EARLY ON
702
00:33:58,104 --> 00:34:01,440
ABOUT DO WE INVEST IN BITCOIN
OR BITCOIN COMPANIES
703
00:34:01,473 --> 00:34:04,276
AND WE SORT OF
DECIDED TO DO BOTH.
704
00:34:04,310 --> 00:34:07,113
MORE TOWARDS INVESTING
IN ACTUALLY BITCOIN
705
00:34:07,146 --> 00:34:08,580
IN THE ASSET EARLY DAYS,
706
00:34:08,614 --> 00:34:11,517
BUT ALSO TRYING TO PLACE
A FEW BETS IN THE ECOSYSTEM
707
00:34:11,550 --> 00:34:15,187
TO SUPPORT THE COMPANIES,
SUPPORT THE ENTREPRENEURS,
708
00:34:15,221 --> 00:34:17,456
AND SEE HOW THAT WENT.
709
00:34:17,489 --> 00:34:21,127
A FEW DAYS AFTER THEY FIRST
FOUND OUT ABOUT BITCOIN,
710
00:34:21,160 --> 00:34:24,563
THEY WERE IN THE BITINSTANT
OFFICES IN NEW YORK
711
00:34:24,596 --> 00:34:26,598
MEETING WITH
ERIK AND CHARLIE.
712
00:34:26,632 --> 00:34:31,870
AND ERIK AND CHARLIE
ESSENTIALLY TALKED THEM
THROUGH BITCOIN
713
00:34:31,903 --> 00:34:35,574
AND ANSWERED ALL OF THEIR
QUESTIONS AND CONCERNS.
714
00:34:35,607 --> 00:34:38,277
WHAT MADE YOU INVEST
IN BITINSTANT?
715
00:34:38,310 --> 00:34:41,647
THERE ARE A LOT OF COMPANIES
AND EXCHANGES AND WEBSITES.
716
00:34:41,680 --> 00:34:45,351
WITH RESPECT TO BITCOIN,
REGULATION IS OBVIOUSLY
A BIG QUESTION.
717
00:34:45,384 --> 00:34:48,420
WHAT YOU DO WANT IS
A COMPANY THAT SORT OF TAKES
THAT SERIOUSLY
718
00:34:48,454 --> 00:34:50,889
AND UNDERSTANDS THAT
THERE'S THE TECHNOLOGY ELEMENT,
719
00:34:50,922 --> 00:34:52,458
THERE'S BUILDING THE COMPANY,
720
00:34:52,491 --> 00:34:53,525
AND THEN THERE'S ALSO
CREATING THE COMPANY
721
00:34:53,559 --> 00:34:54,826
THAT WORKS WITH REGULATORS.
722
00:34:54,860 --> 00:34:56,562
AND SO THAT'S BITINSTANT.
723
00:34:56,595 --> 00:34:58,830
IT'S NOT THIS SORT OF
COMPLETELY UNDERGROUND THING?
724
00:34:58,864 --> 00:35:02,334
YEAH, CHARLIE THE CEO
HAPPENS TO HAVE BEEN IN
THIS SPACE FOR A LONG TIME,
725
00:35:02,368 --> 00:35:04,836
SO HE'S SORT OF ON
THE PULSE AND THE CUTTING EDGE.
726
00:35:04,870 --> 00:35:06,505
[SHREM]
YOU KNOW, YOU COME OUT
AND YOU SAY, LIKE,
727
00:35:06,538 --> 00:35:08,374
"WE WANT THIS BITCOIN THING
TO OVERTURN EVERYTHING,"
728
00:35:08,407 --> 00:35:10,442
BUT AT THE SAME TIME
WE HAVE TO BE COMPLIANT
729
00:35:10,476 --> 00:35:12,244
AND YOU HAVE TO KNOW
YOUR CUSTOMER.
730
00:35:12,278 --> 00:35:14,913
YOU HAVE TO KNOW
EVERY SINGLE CUSTOMER
NO MATTER WHAT.
731
00:35:14,946 --> 00:35:17,316
EVEN IF THEY'RE TRANSFERRING
A DOLLAR OR $1,000.
732
00:35:17,349 --> 00:35:18,817
AND HOW REASONABLE IS THAT?
733
00:35:18,850 --> 00:35:20,786
THE TERM "MONEY LAUNDERING"
WAS INVENTED BY BANKS,
734
00:35:20,819 --> 00:35:22,588
AND KNOWING YOUR CUSTOMER
SHOULDN'T BE
735
00:35:22,621 --> 00:35:24,723
THIS COMPLICATED,
EXPENSIVE THING.
736
00:35:24,756 --> 00:35:27,826
AND YOU SHOULDN'T
TREAT EVERYONE LIKE
A CRIMINAL IN THE BEGINNING.
737
00:35:27,859 --> 00:35:29,795
[TYLER WINKLEVOSS]
THEY REALLY WANTED US INVOLVED.
738
00:35:29,828 --> 00:35:32,564
PEOPLE WERE REALLY FRIENDLY,
BECAUSE IT BENEFITS YOU
739
00:35:32,598 --> 00:35:34,666
TO ONBOARD MORE PEOPLE IN,
740
00:35:34,700 --> 00:35:37,869
SO BITCOIN'S ALWAYS BEEN
THIS VERY FRIENDLY COMMUNITY
741
00:35:37,903 --> 00:35:41,407
AND IT'S ALSO-- IN SOME WAYS
IT'S SELF-SERVING THAT WAY,
742
00:35:41,440 --> 00:35:45,177
BUT WE WERE THERE
FOR THE RIGHT REASONS.
743
00:35:45,211 --> 00:35:48,447
[POPPER]
AT THE TIME, BITINSTANT
WAS THE BIG COMPANY
744
00:35:48,480 --> 00:35:49,781
OTHER THAN MT. GOX.
745
00:35:49,815 --> 00:35:53,452
IT WAS THE WAY THAT MOST
AMERICANS WERE ABLE
746
00:35:53,485 --> 00:35:55,421
TO BUY BITCOINS.
747
00:35:55,454 --> 00:35:57,556
HERE IT IS.
748
00:35:57,589 --> 00:36:00,226
SO BITINSTANT
WAS LOCATED RIGHT THERE.
749
00:36:00,259 --> 00:36:02,761
I THINK IT'S THE ONE
THAT NOW SAYS "BLING."
750
00:36:02,794 --> 00:36:04,863
IT WAS A WHIRLWIND
SIX MONTHS.
751
00:36:04,896 --> 00:36:07,699
GOING FROM TOTAL OBSCURITY
WITH NO MONEY
752
00:36:07,733 --> 00:36:11,670
TO BECOMING ONE OF
THE HOT STARTUPS OF BITCOIN.
753
00:36:11,703 --> 00:36:15,641
BUT ALMOST AS SOON AS
THE TWINS MADE THEIR INVESTMENT
IN THE COMPANY,
754
00:36:15,674 --> 00:36:17,243
IT BEGAN FALLING APART.
755
00:36:17,276 --> 00:36:19,511
THE TWINS HAD A MUCH MORE
PRACTICAL APPROACH
756
00:36:19,545 --> 00:36:21,347
TO BITCOIN
AND BITINSTANT.
757
00:36:21,380 --> 00:36:24,316
THEY WANTED TO SEE
THE COMPANY MAKING MONEY
758
00:36:24,350 --> 00:36:26,318
AND MAKING AS MUCH MONEY
AS IT COULD
759
00:36:26,352 --> 00:36:27,753
AS QUICKLY AS IT COULD.
760
00:36:27,786 --> 00:36:30,622
THEY SAW EARLY ON
THAT IT WOULD BE REGULATED,
761
00:36:30,656 --> 00:36:32,258
THAT IT WASN'T
GONNA BE THIS BIG,
762
00:36:32,291 --> 00:36:34,793
AND HAVE NO ONE BE
INTERESTED IN REGULATING IT.
763
00:36:34,826 --> 00:36:37,629
SO THEY FEARED THAT
ALL KINDS OF REGULATORS
764
00:36:37,663 --> 00:36:39,731
WOULD COME IN
AT ALL DIFFERENT ANGLES
765
00:36:39,765 --> 00:36:41,600
AND TIE THE THING UP
IN A COMPLETE MORASS
766
00:36:41,633 --> 00:36:43,235
WHERE NOTHING
WOULD EVER GET DONE.
767
00:36:43,269 --> 00:36:46,638
SO THEY WANTED TO HELP
DRIVE THE REGULATION
768
00:36:46,672 --> 00:36:49,375
SO THAT WHATEVER REGULATION
WOULD BE THERE WOULD WORK
769
00:36:49,408 --> 00:36:53,379
AND WOULD NOT END UP
BEING A COMPLETE DEAD END
FOR BITCOIN.
770
00:36:54,646 --> 00:36:56,982
[VOORHEES]
THAT STRATEGY IS SMARTER,
771
00:36:57,015 --> 00:36:58,950
FROM PURELY
A BUSINESS PERSPECTIVE,
772
00:36:58,984 --> 00:37:01,620
BUT I'M NOT IN THIS PURELY
FROM A BUSINESS PERSPECTIVE.
773
00:37:01,653 --> 00:37:04,390
I AM IN THIS FOR BUSINESS
AND BECAUSE I'M TRYING
774
00:37:04,423 --> 00:37:05,791
TO CHANGE THE WORLD
AND MAKE IT BETTER,
775
00:37:05,824 --> 00:37:07,859
AND BUILDING
BITCOIN COMPANIES
776
00:37:07,893 --> 00:37:09,428
AND BEGGING FOR REGULATION
777
00:37:09,461 --> 00:37:11,263
THAT MATCHES EXACTLY
THE BANKING REGULATION
778
00:37:11,297 --> 00:37:12,731
THAT HAS CAUSED
SO MANY PROBLEMS
779
00:37:12,764 --> 00:37:14,766
I FEEL LIKE IS
COUNTERPRODUCTIVE.
780
00:37:14,800 --> 00:37:19,605
FOR THE MOST PART,
BITINSTANT WAS ACTUALLY
TAKING STEPS
781
00:37:19,638 --> 00:37:24,910
TO MAKE SURE THAT PEOPLE
WEREN'T USING THE SERVICE
FOR ILLEGAL PURPOSES,
782
00:37:24,943 --> 00:37:28,514
BUT CHARLIE MADE THE MISTAKE
IN DEALING WITH BTCKING
783
00:37:28,547 --> 00:37:30,849
OF ACKNOWLEDGING
THAT HE KNEW
784
00:37:30,882 --> 00:37:33,051
WHAT BTCKING WAS DOING,
785
00:37:33,084 --> 00:37:35,954
AND THAT HE WAS ACQUIRING
BITCOINS TO SELL THEM
786
00:37:35,987 --> 00:37:37,623
TO SILK ROAD CUSTOMERS.
787
00:37:39,958 --> 00:37:42,994
IN THIS CASE,
CHARLIE WORKED WITH THE GUY
788
00:37:43,028 --> 00:37:46,332
AND WROTE EMAILS THAT
ESSENTIALLY ACKNOWLEDGED
789
00:37:46,365 --> 00:37:48,967
HE KNEW WHAT
THIS GUY WAS UP TO.
790
00:38:10,422 --> 00:38:11,890
THAT STUNNING ARREST
OF THE DRUG KINGPIN
791
00:38:11,923 --> 00:38:13,925
WHO GOES BY THE NAME
"DREAD PIRATE ROBERTS"
792
00:38:13,959 --> 00:38:16,462
AND APPEARS TO HAVE CORNERED
THE INTERNET DRUG MARKET.
793
00:38:16,495 --> 00:38:19,097
HIS REAL NAME IS ROSS ULBRICHT
AND HIS WEBSITE, SILK ROAD,
794
00:38:19,130 --> 00:38:21,933
IS PACKED WITH PRODUCTS
LIKE COCAINE AND HEROIN.
795
00:38:21,967 --> 00:38:23,902
[NEWSCASTER]
THE PAYMENT SYSTEM
IS ALL THROUGH BITCOINS,
796
00:38:23,935 --> 00:38:26,438
WHICH IS BASICALLY
DIGITAL CURRENCY,
797
00:38:26,472 --> 00:38:28,740
NOT BACKED UP BY
ANY INTERNATIONAL BANKS,
798
00:38:28,774 --> 00:38:30,509
NOT BACKED UP
BY ANY US BANKS,
799
00:38:30,542 --> 00:38:33,078
BUT SIMPLY BASED ON
THE CONFIDENCE OF THE USERS
800
00:38:33,111 --> 00:38:35,614
WHO EXCHANGE THESE BITCOINS
COMPUTER TO COMPUTER.
801
00:38:40,552 --> 00:38:42,554
[WINTER]
THERE'S A REASON WHY
THE CASE WAS TRIED IN NEW YORK,
802
00:38:42,588 --> 00:38:43,855
IN THE SOUTHERN DISTRICT,
803
00:38:43,889 --> 00:38:47,959
AND LARGELY THAT
WAS BECAUSE OF BITCOIN.
804
00:38:47,993 --> 00:38:50,095
ROSS WAS CAUGHT
IN SAN FRANCISCO.
805
00:38:50,128 --> 00:38:53,599
THE SILK ROAD SERVERS
WERE OUT OF THE COUNTRY.
806
00:38:53,632 --> 00:38:56,802
SO WHY WAS ROSS'S CASE
TRIED IN THE SOUTHERN DISTRICT
OF NEW YORK
807
00:38:56,835 --> 00:39:00,839
WHERE MOST OF THE FINANCIAL
REGULATIONS CASES
ARE DEALT WITH?
808
00:39:00,872 --> 00:39:03,074
WHERE THE DISTRICT ATTORNEY,
PREET BHARARA
809
00:39:03,108 --> 00:39:05,010
HAS BEEN ALL OVER BITCOIN.
810
00:39:05,043 --> 00:39:07,579
WHERE CHARLES SCHUMER,
THE SENATOR, HAS BEEN ALL OVER
BITCOIN.
811
00:39:07,613 --> 00:39:10,015
ROSS ULBRICHT'S CASE
IS A BITCOIN CASE.
812
00:39:10,048 --> 00:39:11,683
THERE'S ABSOLUTELY
NO DENYING IT.
813
00:39:11,717 --> 00:39:14,753
THE LEVEL OF THREAT
THAT THE SILK ROAD POSED
814
00:39:14,786 --> 00:39:16,888
TO THE MARKETPLACE,
TO WALL STREET,
815
00:39:16,922 --> 00:39:19,625
WHETHER IT'S A PERCEIVED THREAT
OR AN ACTUAL THREAT,
816
00:39:19,658 --> 00:39:21,560
WAS HUMONGOUS.
817
00:39:21,593 --> 00:39:25,664
AND THE IDEA THAT SOMEBODY
COULD CREATE A MARKETPLACE
818
00:39:25,697 --> 00:39:29,768
WHERE YOU COULD
FREELY TRANSACT WITHOUT
OVERSIGHT OR REGULATION
819
00:39:29,801 --> 00:39:34,072
HAD TO BE DEALT
A MASSIVE AND PUBLIC BLOW.
820
00:39:34,105 --> 00:39:39,711
BITCOIN KIND OF MONETIZED
THAT ANONYMOUS PART
OF THE INTERNET
821
00:39:39,745 --> 00:39:41,847
AND MADE IT POSSIBLE
TO TRADE IN THINGS
822
00:39:41,880 --> 00:39:45,451
THAT THE FEDERAL GOVERNMENT
DOESN'T WANT YOU TO TRADE IN.
823
00:39:45,484 --> 00:39:47,453
LAW ENFORCEMENT
MOVES SLOWLY
824
00:39:47,486 --> 00:39:50,155
BUT IT'S A BIG HEAVY WHEEL
THAT GRINDS FINELY,
825
00:39:50,188 --> 00:39:52,991
SO, YOU KNOW, SOMEONE
WAS RUNNING A HIDDEN SERVICE,
826
00:39:53,024 --> 00:39:54,926
AND NOW THEY'RE
IN PRISON FOR LIFE.
827
00:39:54,960 --> 00:39:57,195
THEY WERE PLAYING HARDBALL.
IT WAS VERY EVIDENT
828
00:39:57,228 --> 00:40:02,067
THAT THEIR INTENTION,
AS THE JUDGE HERSELF SAID
IN HER SENTENCING,
829
00:40:02,100 --> 00:40:03,835
WAS TO MAKE AN EXAMPLE
OUT OF ROSS,
830
00:40:03,869 --> 00:40:06,872
WAS TO SAY TO ALL OF YOU
PEOPLE USING BITCOIN,
831
00:40:06,905 --> 00:40:08,840
TO ALL OF YOU PEOPLE
WHO WANT TO TANGLE
832
00:40:08,874 --> 00:40:12,944
WITH UNREGULATED MARKETPLACES
AND TECHNOLOGIES
833
00:40:12,978 --> 00:40:15,213
AND OPEN SOURCE
CRYPTOCURRENCIES,
834
00:40:15,246 --> 00:40:20,018
"WE WILL THROW THE BOOK
IN ITS ENTIRETY AT YOU
IF YOU DO THIS."
835
00:40:20,051 --> 00:40:22,020
WE SEIZED A WHOLE BUNCH
OF BITCOINS.
836
00:40:22,053 --> 00:40:26,224
AND IN ORDER TO SELL
THOSE BITCOINS OFF
OR GO TO AN EXCHANGE,
837
00:40:26,257 --> 00:40:29,595
YOU HAVE TO FIT WITHIN
FEDERAL LAW AND STATE LAW.
838
00:40:29,628 --> 00:40:31,162
THERE'S NOT REALLY AN EXCHANGE
THAT COULD HANDLE THAT,
839
00:40:31,196 --> 00:40:33,999
THAT MET THOSE REGULATIONS
AT THE CURRENT TIME,
840
00:40:34,032 --> 00:40:35,867
SO IT HAD TO BE HANDLED
THROUGH AUCTION.
841
00:40:47,112 --> 00:40:48,947
[WOMAN]
YOU KNOW ANYTHING
ABOUT BITCOINS?
842
00:40:48,980 --> 00:40:53,619
THERE'S AN ARTICLE
IN "THE WALL STREET JOURNAL"
TODAY
843
00:40:53,652 --> 00:40:56,087
- ON BITCOINS.
- [WOMAN] REALLY?
844
00:40:56,121 --> 00:40:58,189
RIGHT HERE,
IF YOU WANT TO READ IT.
845
00:40:58,223 --> 00:41:00,726
IT IS?
846
00:41:00,759 --> 00:41:02,160
DIGITAL CURRENCY,
DID YOU SEE THAT?
847
00:41:02,193 --> 00:41:04,195
[WOMAN #2]
WOW, OH!
848
00:41:04,229 --> 00:41:06,965
"DIGITAL CURRENCIES
WILL DISRUPT GLOBAL FINANCE,
849
00:41:06,998 --> 00:41:09,000
TRANSFORM THE WAY
WE PAY FOR THINGS,
850
00:41:09,034 --> 00:41:12,504
AND JUST MAYBE,
MAKE THE WORLD A FAIRER PLACE."
851
00:41:12,538 --> 00:41:14,072
FROM WHAT I'VE READ
ON THE COMPUTER,
852
00:41:14,105 --> 00:41:15,641
THEY HAVE HAD
SOME PROBLEMS.
853
00:41:18,544 --> 00:41:20,746
- YEAH.
- YEAH.
854
00:41:20,779 --> 00:41:23,181
THE REASON IS
BECAUSE YOU CAN'T TRACK IT.
855
00:41:23,214 --> 00:41:26,585
WELL, I THINK I DON'T LIKE
THIS IDEA AT ALL.
856
00:41:31,623 --> 00:41:33,124
[ANDRESEN]
WHEN WE SAW
THE SILK ROAD SHUT DOWN,
857
00:41:33,158 --> 00:41:34,860
A LOT OF PEOPLE SAID,
858
00:41:34,893 --> 00:41:37,195
"BITCOIN'S NOTHING BUT
ILLEGAL DRUGS ON THE INTERNET.
859
00:41:37,228 --> 00:41:38,864
THAT'S WHAT IT IS."
860
00:41:38,897 --> 00:41:40,632
AND THEY WOULD POINT
AT THE SILK ROAD AND SAY,
861
00:41:40,666 --> 00:41:43,001
"LOOK HERE
AT ALL THE STUFF
THAT'S HAPPENING HERE."
862
00:41:43,034 --> 00:41:46,304
AND I THINK WHEN YOU SAW
THE SILK ROAD SHUT DOWN
863
00:41:46,337 --> 00:41:48,239
AND BITCOIN
TRANSACTION VOLUME
864
00:41:48,273 --> 00:41:50,609
TAKE A TINY LITTLE DIP,
865
00:41:50,642 --> 00:41:52,778
AND THEN KEEP GOING UP,
866
00:41:52,811 --> 00:41:55,246
YOU KNOW, I THINK THAT WAS
A GREAT EVENT TO POINT AT
867
00:41:55,280 --> 00:41:58,984
AND SAY, "IT REALLY
WASN'T ABOUT THAT.
868
00:41:59,017 --> 00:42:00,952
IT REALLY ISN'T ABOUT THAT."
869
00:42:00,986 --> 00:42:03,054
IT'S A TINY LITTLE PART
OF THE ECONOMY.
870
00:42:09,094 --> 00:42:10,762
[PETER CAVENAUGH]
I GUESS IN THE LAST WEEK
871
00:42:10,796 --> 00:42:13,599
I'VE REALLY STARTED
HEARING ABOUT BITCOIN.
872
00:42:13,632 --> 00:42:15,166
RECENTLY I HEARD
A SCENARIO
873
00:42:15,200 --> 00:42:17,969
AFTER THE FBI HAD SEIZED
A BUNCH OF BITCOINS
874
00:42:18,003 --> 00:42:19,838
DUE TO ILLEGAL TRANSACTIONS,
875
00:42:19,871 --> 00:42:21,172
NOW THEY'RE GONNA BE
AUCTIONING THEM OFF
876
00:42:21,206 --> 00:42:23,642
LIKE THEY WOULD
A PRIVATE YACHT
877
00:42:23,675 --> 00:42:26,077
FOR, YOU KNOW,
FROM SOME DRUG DEALER.
878
00:42:26,111 --> 00:42:30,181
SO THAT, IN A WAY,
LEGITIMIZES THE USE OF IT
879
00:42:30,215 --> 00:42:32,217
AS A CURRENCY.
880
00:42:37,088 --> 00:42:41,927
[SPANOS]
LOOKS LIKE
IT'S THE FIRST LIVE
881
00:42:41,960 --> 00:42:45,597
BITCOIN EXCHANGE
ON WALL STREET.
882
00:42:45,631 --> 00:42:47,098
LOOKS THAT WAY.
883
00:42:48,834 --> 00:42:50,702
YEAH, SO ONE FOR 950.
884
00:42:50,736 --> 00:42:52,604
-BUYING OR SELLING?
-[MAN] SELLING.
885
00:42:52,638 --> 00:42:54,272
550 ON A THOUSAND--
886
00:42:54,305 --> 00:42:58,243
RIGHT NOW WE WERE LOOKING
AT THE OPEN INTEREST
887
00:42:58,276 --> 00:43:00,812
AT THE FLOOR OF
THE BITCOIN EXCHANGE.
888
00:43:00,846 --> 00:43:04,015
THERE'S DIFFERENT
EXCHANGES THAT ARE ONLINE,
889
00:43:04,049 --> 00:43:05,383
THAT WILL PRESENT
AT THE BIDDING HOUSE,
890
00:43:05,416 --> 00:43:09,621
BUT THERE'S NO TRUE
OPEN OUTCRY EXCHANGE.
891
00:43:09,655 --> 00:43:11,222
BUYERS AND SELLERS
COMING TOGETHER
892
00:43:11,256 --> 00:43:14,793
IN AN OPEN, CLEAR,
TRANSPARENT, HONEST WAY.
893
00:43:16,695 --> 00:43:19,197
-GOX IS THE HIGHEST ONE.
-WHY DON'T WE CALL IT 900?
894
00:43:19,230 --> 00:43:20,632
900...
895
00:43:26,004 --> 00:43:27,372
THERE'S MY TRANSACTION,
896
00:43:27,405 --> 00:43:29,340
PROBABLY THE FIRST TWO
TRANSACTIONS OF THE DAY.
897
00:43:29,374 --> 00:43:30,742
IT'S REALLY
NOT ABOUT THE MONEY,
898
00:43:30,776 --> 00:43:32,310
IT'S ABOUT BEING INVOLVED,
899
00:43:32,343 --> 00:43:34,212
AND I THINK THERE'S A LOT
MORE PEOPLE GONNA FOLLOW ME.
900
00:43:40,218 --> 00:43:42,187
[TRISH REGAN]
CHARLIE SHREM,
24 YEARS OLD,
901
00:43:42,220 --> 00:43:44,656
ARRESTED TODAY
AND CHARGED WITH ENGAGING
IN MONEY LAUNDERING
902
00:43:44,690 --> 00:43:48,059
SHREM ENABLED PEOPLE
TO TRANSFER MONEY
903
00:43:48,093 --> 00:43:50,996
FROM BITCOIN TO CASH
VIA HIS COMPANY
CALLED BITINSTANT.
904
00:43:51,029 --> 00:43:52,798
NOW THE OTHER POINT
THAT THE DEA IS MAKING
905
00:43:52,831 --> 00:43:56,301
IS THAT SHREM BOUGHT DRUGS
ONLINE AT SILK ROAD
906
00:43:56,334 --> 00:44:00,338
AND THAT HE KNEW SILK ROAD
WAS A TRAFFICKING WEBSITE.
907
00:44:00,371 --> 00:44:02,741
[NEWSCASTER]
AND WE KNOW
THE WINKLEVOSS TWINS
908
00:44:02,774 --> 00:44:05,911
WHO OBVIOUSLY WERE FEATURED
IN THE MOVIE ABOUT FACEBOOK.
909
00:44:05,944 --> 00:44:09,080
THEY'RE ACTUALLY INVESTORS
IN SHREM'S COMPANY.
910
00:44:09,114 --> 00:44:12,851
YEAH, YOU KNOW,
A LOT OF PEOPLE ARE VERY
EXCITED BY THIS IDEA.
911
00:44:12,884 --> 00:44:15,220
THEY LIKE THE IDEA THAT
YOU CAN HAVE A CURRENCY
912
00:44:15,253 --> 00:44:17,923
THAT IS NOT TIED
TO ANY KIND OF CENTRAL BANK,
913
00:44:17,956 --> 00:44:19,758
BUT AT THE SAME TIME,
I MEAN, THINK ABOUT IT.
914
00:44:19,791 --> 00:44:21,059
IF YOU'RE IN
THE FEDERAL GOVERNMENT,
915
00:44:21,092 --> 00:44:22,694
YOU DON'T LIKE THE IDEA
THAT PEOPLE COULD
916
00:44:22,728 --> 00:44:25,330
EFFECTIVELY USE ANOTHER
FORM OF CASH
917
00:44:25,363 --> 00:44:29,267
TO BUY THINGS THAT THEY
SHOULDN'T BE BUYING ONLINE.
918
00:44:29,300 --> 00:44:32,370
[SHREM]
WITH ME, IT WASN'T ALL
MY CUSTOMERS.
919
00:44:32,403 --> 00:44:34,105
IT WAS ONE CUSTOMER,
920
00:44:34,139 --> 00:44:36,441
OUT OF ABOUT
100,000 CUSTOMERS.
921
00:44:36,474 --> 00:44:38,810
THIS WAS ONE CUSTOMER.
ONE SINGLE--
922
00:44:38,844 --> 00:44:40,178
AND I MADE THAT CASE
IN MY SENTENCING.
923
00:44:40,211 --> 00:44:42,714
I SAID, "YOUR HONOR,
THIS WAS ONE CUSTOMER."
924
00:44:42,748 --> 00:44:46,317
IT HAPPENED THAT I WAS LITERALLY
COMING HOME FROM AMSTERDAM.
925
00:44:46,351 --> 00:44:47,919
I WAS IN MY SWEATSHIRT.
I WAS STILL STONED.
926
00:44:47,953 --> 00:44:49,154
I DIDN'T KNOW
WHAT WAS GOING ON.
927
00:44:49,187 --> 00:44:51,857
CHARLIE DID NOT KNOW
WHEN TO SHUT UP,
928
00:44:51,890 --> 00:44:54,993
AND THAT ENDED UP
GETTING HIM IN TROUBLE,
929
00:44:55,026 --> 00:44:57,963
AND PROBABLY LED TO THE END
OF HIS COMPANY.
930
00:44:57,996 --> 00:44:59,297
[SHREM]
BUT THEY GOT ME UNDER
THE PATRIOT ACT,
931
00:44:59,330 --> 00:45:00,866
AND IT'S MONEY LAUNDERING
932
00:45:00,899 --> 00:45:03,168
BECAUSE I KNEW THAT
THE MONEY I WAS TAKING
933
00:45:03,201 --> 00:45:07,072
WAS EVENTUALLY POSSIBLY
GOING TO BE USED FOR DRUG
TRAFFICKING.
934
00:45:07,105 --> 00:45:09,808
NOW DRUG TRAFFICKING
IS NOT BUYING DRUGS,
IT'S SELLING DRUGS.
935
00:45:09,841 --> 00:45:11,309
I DIDN'T HELP
THE DRUG SELLER.
936
00:45:11,342 --> 00:45:13,044
I HELPED THE GUY
BUY DRUGS.
937
00:45:13,078 --> 00:45:15,781
BUT I NEVER WENT
TO TRIAL BECAUSE--
938
00:45:15,814 --> 00:45:19,517
AND I PLED GUILTY BECAUSE
WHO WINS AT TRIAL, YOU KNOW?
939
00:45:19,550 --> 00:45:22,353
LIKE THIS GUY, SILK ROAD,
HE'S GONNA GO TO LIFE.
940
00:45:22,387 --> 00:45:24,255
IN TRIAL,
ALL HE NEEDED TO GET
WAS A LADY
941
00:45:24,289 --> 00:45:26,758
WHOSE SON DIED
FROM A COCAINE OVERDOSE
942
00:45:26,792 --> 00:45:29,828
AND I WOULD'VE--
THE JURY WOULD'VE CONVICTED ME
RIGHT THERE.
943
00:45:29,861 --> 00:45:32,163
SO ESSENTIALLY CHARLIE WAS
SELLING BITCOINS TO A GUY
944
00:45:32,197 --> 00:45:34,032
WHO WAS SELLING
BITCOINS TO PEOPLE
945
00:45:34,065 --> 00:45:37,468
WHO WERE PUTTING DRUGS
INTO THEIR OWN BODIES.
946
00:45:37,502 --> 00:45:40,205
AND FOR THIS,
CHARLIE WAS CHARGED
WITH CRIMES
947
00:45:40,238 --> 00:45:43,141
THAT COULD'VE PUT HIM
IN JAIL FOR 20 YEARS.
948
00:45:43,174 --> 00:45:44,976
THAT'S WHAT THE PROSECUTORS
WERE SHOOTING FOR.
949
00:45:45,010 --> 00:45:47,946
WE HAVE BANKS
THAT HAVE ATMS
950
00:45:47,979 --> 00:45:49,447
ON EVERY STREET CORNER
IN AMERICA,
951
00:45:49,480 --> 00:45:51,783
AND THOSE BANKS
KNOW VERY WELL
952
00:45:51,817 --> 00:45:53,251
THAT THAT CASH
IS GETTING USED FOR DRUGS.
953
00:45:53,284 --> 00:45:54,920
AND YET,
THAT'S FINE.
954
00:45:54,953 --> 00:45:56,822
THEY'RE ALLOWED TO DO THAT.
NO ONE GETS IN TROUBLE.
955
00:45:56,855 --> 00:45:59,024
BUT CHARLIE SELLS BITCOIN
TO A GUY WHO SELLS BITCOIN
956
00:45:59,057 --> 00:46:01,259
TO SOMEONE WHO USES DRUGS,
AND HE GOES TO JAIL.
957
00:46:01,292 --> 00:46:04,529
HE WAS AN ENTREPRENEUR THAT
STARTED BUILDING THIS INDUSTRY,
958
00:46:04,562 --> 00:46:07,132
BUILT SERVICES
THAT PEOPLE FOUND USEFUL,
959
00:46:07,165 --> 00:46:09,300
WHEN BANKERS ALMOST DESTROYED
THE WORLD ECONOMY
960
00:46:09,334 --> 00:46:12,904
AND NONE OF THEM
GOT IN TROUBLE WHATSOEVER.
961
00:46:12,938 --> 00:46:15,440
AND HERE WE HAVE THIS
23-YEAR-OLD KID,
HE GOES TO JAIL
962
00:46:15,473 --> 00:46:18,209
BECAUSE HE STARTED
BUILDING AN ALTERNATIVE.
963
00:46:27,953 --> 00:46:29,420
[BENJAMIN LAWSKY]
OVER THE LAST SIX MONTHS,
964
00:46:29,454 --> 00:46:32,357
OUR AGENCY HAS BEEN CONDUCTING
AN EXTENSIVE INQUIRY
965
00:46:32,390 --> 00:46:35,927
INTO VIRTUAL CURRENCY.
966
00:46:35,961 --> 00:46:37,863
THE INFORMATION
WE'RE GOING TO GATHER
967
00:46:37,896 --> 00:46:39,831
IN THIS FACT-FINDING EFFORT
968
00:46:39,865 --> 00:46:41,466
WILL ALLOW US
TO PUT FORWARD,
969
00:46:41,499 --> 00:46:44,035
DURING THE COURSE
OF 2014,
970
00:46:44,069 --> 00:46:46,404
A PROPOSED
REGULATORY FRAMEWORK
971
00:46:46,437 --> 00:46:50,408
FOR VIRTUAL CURRENCY FIRMS
OPERATING IN NEW YORK.
972
00:46:50,441 --> 00:46:52,978
YESTERDAY, WE HAD
SERIOUS CRIMINAL CONDUCT
973
00:46:53,011 --> 00:46:55,847
COME TO LIGHT INVOLVING
VIRTUAL CURRENCY
974
00:46:55,881 --> 00:46:57,515
AS A VEHICLE
FOR MONEY LAUNDERING
975
00:46:57,548 --> 00:47:00,118
DRUG TRAFFICKING,
AND OTHER MAJOR FELONIES.
976
00:47:00,151 --> 00:47:03,454
RIGHT NOW, THE REGULATION
OF VIRTUAL CURRENCY INDUSTRY
977
00:47:03,488 --> 00:47:07,092
IS STILL AKIN
TO A VIRTUAL WILD WEST.
978
00:47:07,125 --> 00:47:08,960
THAT'S WHY
WE'RE EVALUATING
979
00:47:08,994 --> 00:47:10,461
WHETHER OUR AGENCY
SHOULD ISSUE
980
00:47:10,495 --> 00:47:12,330
A SO-CALLED BITLICENSE,
981
00:47:12,363 --> 00:47:15,333
SPECIFICALLY TAILORED
TO VIRTUAL CURRENCIES.
982
00:47:15,366 --> 00:47:17,869
[MORIARTY]
I THINK PEOPLE WHO IMAGINE
983
00:47:17,903 --> 00:47:20,872
A VERY POWERFUL UTILITY,
LIKE BITCOIN
984
00:47:20,906 --> 00:47:23,608
THAT WOULD SOMEHOW ESCAPE
REGULATION ENTIRELY
985
00:47:23,641 --> 00:47:27,278
ARE EITHER NAIVE
986
00:47:27,312 --> 00:47:30,882
OR EXTREME OPTIMISTS.
987
00:47:30,916 --> 00:47:33,118
[VOORHEES]
BITCOIN IS
A BATTLE OF IDEAS,
988
00:47:33,151 --> 00:47:35,553
AND IT FORCES THE ISSUE OF
WHETHER PEOPLE SHOULD BE
989
00:47:35,586 --> 00:47:38,523
AS FREE IN THEIR HANDLING
OF MONEY AS THEY ARE
990
00:47:38,556 --> 00:47:40,558
IN THEIR HANDLING
OF SPEECH OR RELIGION
991
00:47:40,591 --> 00:47:42,928
OR RELATIONSHIPS
WITH EACH OTHER.
992
00:47:42,961 --> 00:47:45,997
IF YOU WANT TO HAVE
THIS THING GO MAINSTREAM,
993
00:47:46,031 --> 00:47:48,266
YOU'RE GOING TO HAVE
TO HAVE THE REGULATORS,
994
00:47:48,299 --> 00:47:49,968
THE LAWMAKERS
WEIGH IN ON IT.
995
00:47:50,001 --> 00:47:52,137
ONE OF THE FIRST ONES
WHO REALLY TOOK AN INTEREST
996
00:47:52,170 --> 00:47:53,671
WAS BENJAMIN LAWSKY.
997
00:47:53,704 --> 00:47:56,274
VERY IMPORTANT REGULATOR
IN THE FINANCIAL WORLD.
998
00:47:56,307 --> 00:47:59,544
AND IN JANUARY, 2014,
HOLDS THESE PUBLIC HEARINGS
999
00:47:59,577 --> 00:48:01,913
BECAUSE HE WANTS
TO COME UP WITH A LICENSE
1000
00:48:01,947 --> 00:48:04,182
FOR BITCOIN COMPANIES.
1001
00:48:04,215 --> 00:48:06,117
WE BELIEVE
THAT PUTTING IN PLACE
1002
00:48:06,151 --> 00:48:08,686
APPROPRIATE
REGULATORY SAFEGUARDS
FOR VIRTUAL CURRENCIES
1003
00:48:08,719 --> 00:48:11,022
WILL ULTIMATELY
BE BENEFICIAL
1004
00:48:11,056 --> 00:48:14,559
TO THE LONG-TERM STRENGTH
OF THE INDUSTRY ITSELF.
1005
00:48:14,592 --> 00:48:17,595
LAWSKY WAS ESSENTIALLY
GIVEN THE OPPORTUNITY
1006
00:48:17,628 --> 00:48:22,300
TO WRITE THE RULES
FOR THIS WHOLE NEW INDUSTRY
FROM SCRATCH.
1007
00:48:22,333 --> 00:48:24,535
[LAWSKY]
THE FIRST QUESTION
IS THE OBVIOUS ONE
1008
00:48:24,569 --> 00:48:25,971
THAT'S ON EVERYONE'S MIND.
1009
00:48:26,004 --> 00:48:27,973
SORT OF UNEXPECTED YESTERDAY,
1010
00:48:28,006 --> 00:48:30,208
BUT WITH THE ARRESTS
WE SAW OBVIOUSLY
1011
00:48:30,241 --> 00:48:32,310
THAT'S PUT A BIT OF A CLOUD
1012
00:48:32,343 --> 00:48:34,079
HANGING OVER
THE INDUSTRY RIGHT NOW,
1013
00:48:34,112 --> 00:48:37,582
AND SO HOW DO EACH OF YOU REACT
TO WHAT WE SAW YESTERDAY,
1014
00:48:37,615 --> 00:48:41,452
WHAT IT MEANS FOR BITCOIN
OR VIRTUAL CURRENCY
AND ITS FUTURE?
1015
00:48:41,486 --> 00:48:44,422
I THINK IT FURTHER
SUPPORTS THAT
1016
00:48:44,455 --> 00:48:46,424
BAD GUYS ARE GONNA DO
BAD THINGS,
1017
00:48:46,457 --> 00:48:49,060
AND THEY'RE GONNA
USE WHATEVER TECHNOLOGY
IS AVAILABLE TO THEM.
1018
00:48:49,094 --> 00:48:51,997
BUT I VIEW IT AS,
IF THE ALLEGATIONS ARE TRUE
AND THEY'RE CONVICTED,
1019
00:48:52,030 --> 00:48:54,332
THE SYSTEM WORKS.
1020
00:48:54,365 --> 00:48:56,501
[FRED WILSON]
ARE PEOPLE STILL DOING BAD
THINGS WITH BITCOIN?
1021
00:48:56,534 --> 00:49:00,138
SURE. IS THE MAJORITY OF
THE BITCOIN ACTIVITY VICE?
1022
00:49:00,171 --> 00:49:01,306
NOT A CHANCE.
1023
00:49:01,339 --> 00:49:02,607
SO I THINK
THE ISSUE YOU RAISE
1024
00:49:02,640 --> 00:49:05,276
IS ONE THAT PEOPLE
LIKE TO WRITE ABOUT,
1025
00:49:05,310 --> 00:49:07,645
THE MEDIA LIKES
TO WRITE ABOUT IT,
MAKES GREAT HEADLINES.
1026
00:49:07,678 --> 00:49:09,614
YOU GET A LOT OF CLICKS.
YOU CAN SELL A LOT OF ADS,
1027
00:49:09,647 --> 00:49:12,984
BUT I THINK
IT'S IN THE REARVIEW MIRROR.
1028
00:49:13,018 --> 00:49:15,620
THERE ARE SOME PEOPLE
IN THE BITCOIN COMMUNITY
1029
00:49:15,653 --> 00:49:17,722
FROM THE LIBERTARIAN
SIDE OF THINGS
1030
00:49:17,755 --> 00:49:20,725
THAT WANT GOVERNMENT
TO JUST LEAVE IT ALONE.
1031
00:49:20,758 --> 00:49:24,595
WOULD YOU SAY REGULATION
IS BOTH INEVITABLE
1032
00:49:24,629 --> 00:49:26,764
BUT MORE IMPORTANTLY,
ACTUALLY ULTIMATELY
1033
00:49:26,797 --> 00:49:29,700
GOING TO BE CRUCIAL
FOR THE SURVIVAL
OF VIRTUAL CURRENCY?
1034
00:49:29,734 --> 00:49:31,536
[WILSON]
SOUNDS LIKE A TERRIBLE
IDEA TO ME.
1035
00:49:31,569 --> 00:49:33,171
JUST UNDERSTAND WHAT WE'RE
TRYING TO DO WITH BITCOIN.
1036
00:49:33,204 --> 00:49:35,206
WE'RE TRYING
TO CREATE A WORLD
1037
00:49:35,240 --> 00:49:39,644
WHERE TRANSACTIONS
CAN MOVE GLOBALLY FOR FREE,
OKAY?
1038
00:49:39,677 --> 00:49:43,414
AND MAKING
THESE COMPANIES HIRE
1039
00:49:43,448 --> 00:49:45,650
YOU KNOW, SOME OUTSOURCED
COMPLIANCE FIRM
1040
00:49:45,683 --> 00:49:47,618
IS A BAD IDEA.
1041
00:49:47,652 --> 00:49:49,354
IT'D BE GREAT,
IN ANY INDUSTRY,
1042
00:49:49,387 --> 00:49:51,189
IF YOU COULD JUST
OPEN THE DOOR AND LET FOLKS
1043
00:49:51,222 --> 00:49:52,723
RUN OUT AND
GIVE IT A SHOT.
1044
00:49:52,757 --> 00:49:55,393
WE MAY CHOOSE NOT
TO INVEST IN A COMPANY
1045
00:49:55,426 --> 00:49:58,696
IF THEY CAN'T
GET LICENSED BY YOU.
1046
00:49:58,729 --> 00:50:01,199
[LAWSKY]
IF THE CHOICE ULTIMATELY
IS BETWEEN
1047
00:50:01,232 --> 00:50:03,568
PREVENTING MONEY LAUNDERING
ON THE ONE HAND,
1048
00:50:03,601 --> 00:50:06,137
AND I PROBABLY
SHOULDN'T EVEN USE THE WORD
"MONEY LAUNDERING"
1049
00:50:06,171 --> 00:50:07,805
'CAUSE IT'S TOO NICE
A WORD, FRANKLY.
1050
00:50:07,838 --> 00:50:10,508
MONEY LAUNDERING
IS THE FACILITATION
1051
00:50:10,541 --> 00:50:12,410
OF ALL KINDS
OF HORRIFIC CRIMES
1052
00:50:12,443 --> 00:50:14,179
THAT I THINK
EVERYONE IN THIS ROOM
1053
00:50:14,212 --> 00:50:15,646
NEVER WANTS TO SEE HAPPEN.
1054
00:50:15,680 --> 00:50:18,449
ACTS OF TERRORISM,
FUNDING ROGUE NATIONS, ETC.,
1055
00:50:18,483 --> 00:50:20,785
ALL TAKE PLACE THROUGH
MASSIVE MONEY LAUNDERING.
1056
00:50:20,818 --> 00:50:22,820
NOW THE CHOICE
FOR THE REGULATOR IS,
1057
00:50:22,853 --> 00:50:25,223
PERMIT MONEY LAUNDERING
ON THE ONE HAND,
1058
00:50:25,256 --> 00:50:29,127
OR PERMIT INNOVATION
ON THE OTHER.
1059
00:50:29,160 --> 00:50:31,262
WE'RE ALWAYS
GOING TO CHOOSE
1060
00:50:31,296 --> 00:50:33,131
SQUELCHING
THE MONEY LAUNDERING FIRST.
1061
00:50:34,865 --> 00:50:38,803
I AGREE THAT I DON'T THINK
ANYBODY WANTS MONEY LAUNDERING.
1062
00:50:38,836 --> 00:50:41,806
WHEN WE GOT A--
FIRST SAW BITCOIN
1063
00:50:41,839 --> 00:50:43,841
YOU KNOW, ABOUT A YEAR AND
A HALF, ALMOST TWO YEARS AGO.
1064
00:50:43,874 --> 00:50:44,775
I DON'T THINK
ANYBODY WOULD DENY
1065
00:50:44,809 --> 00:50:46,577
THAT IT WAS A BIT
OF A WILD, WILD WEST,
1066
00:50:46,611 --> 00:50:48,113
BECAUSE THERE WAS
NO REGULATION.
1067
00:50:48,146 --> 00:50:50,515
THERE WAS NO FRAMEWORK
TO EVALUATE
1068
00:50:50,548 --> 00:50:52,750
THE ASSET,
EVALUATE COMPANIES,
1069
00:50:52,783 --> 00:50:55,420
DETERMINE WHO WAS COMPLIANT
AND WHO WAS NOT,
1070
00:50:55,453 --> 00:50:57,822
AND A WILD WEST
ATTRACTS COWBOYS.
1071
00:50:57,855 --> 00:51:00,858
AND I DON'T THINK ANYBODY HERE
WOULD DISAGREE WITH THE FACT
1072
00:51:00,891 --> 00:51:03,661
THAT A SHERIFF
WOULD BE A GOOD THING.
1073
00:51:03,694 --> 00:51:05,296
[VOORHEES]
A LOT OF, I THINK,
THE ENTREPRENEURS
1074
00:51:05,330 --> 00:51:07,465
FEEL LIKE THEY HAVE
TO SELF-CENSOR.
1075
00:51:07,498 --> 00:51:10,835
THEY DON'T WANT TO COME OUT
VOCALLY CRITICAL
OF THE REGULATIONS.
1076
00:51:10,868 --> 00:51:12,570
PART OF THAT IS MAYBE
'CAUSE SOME OF THEM
1077
00:51:12,603 --> 00:51:13,771
JUST LIKE REGULATIONS,
1078
00:51:13,804 --> 00:51:15,340
BUT I THINK ANOTHER
PART OF IT,
1079
00:51:15,373 --> 00:51:17,742
SOME OF THEM JUST FEEL LIKE
THEY WILL GET
1080
00:51:17,775 --> 00:51:20,178
ATTENTION OF THE REGULATORS
IF THEY COME OUT AGAINST THEM.
1081
00:51:20,211 --> 00:51:22,313
YES, WE WANT THEM TO INNOVATE,
BUT AT THE SAME TIME,
1082
00:51:22,347 --> 00:51:25,683
WE JUST CAN'T LIVE IN A WORLD
WHERE WE'RE GONNA PERMIT
1083
00:51:25,716 --> 00:51:27,485
MONEY LAUNDERING
TO GO ON.
1084
00:51:27,518 --> 00:51:29,287
[ANDRESEN]
I THINK REGULATORS
SHOULD GIVE BITCOIN
1085
00:51:29,320 --> 00:51:30,421
SOME TIME TO GROW UP.
1086
00:51:30,455 --> 00:51:32,290
TOO MUCH REGULATION NOW
1087
00:51:32,323 --> 00:51:33,824
WILL JUST
STIFLE INNOVATION.
1088
00:51:33,858 --> 00:51:37,128
I THINK BEFORE REGULATORS
KIND OF COME IN AND SAY,
1089
00:51:37,162 --> 00:51:38,663
"WE'RE GONNA SOLVE
ALL YOUR PROBLEMS,"
1090
00:51:38,696 --> 00:51:41,166
AND THEN FAIL
TO SOLVE ALL THEIR PROBLEMS,
1091
00:51:41,199 --> 00:51:43,268
I THINK THEY SHOULD GIVE
THE INNOVATORS TIME
1092
00:51:43,301 --> 00:51:45,236
TO SOLVE THOSE PROBLEMS.
1093
00:51:45,270 --> 00:51:48,573
ONE FUNCTION OF REGULATION
IS TO MAKE THINGS CLEARER,
1094
00:51:48,606 --> 00:51:51,242
SO RIGHT NOW BITCOIN,
BECAUSE IT'S SO NEW,
1095
00:51:51,276 --> 00:51:54,545
IS IN A STATE OF FLUX
EVERYWHERE.
1096
00:51:54,579 --> 00:51:55,613
THE LESSON
FROM THE INTERNET
1097
00:51:55,646 --> 00:51:57,748
IS ANYTHING
THAT CHINA BANS,
1098
00:51:57,782 --> 00:51:58,749
INVEST IN.
1099
00:51:58,783 --> 00:52:00,851
[LAUGHTER]
1100
00:52:00,885 --> 00:52:04,455
AND THAT'S A JOKE,
BUT THE U.S.
1101
00:52:04,489 --> 00:52:07,625
ALLOWS GOOGLE TO OPERATE HERE,
ALLOWS TWITTER TO OPERATE HERE,
1102
00:52:07,658 --> 00:52:08,926
ALLOWS BITCOIN
TO OPERATE HERE,
1103
00:52:08,959 --> 00:52:11,229
ALLOWS FACEBOOK
TO OPERATE HERE.
1104
00:52:11,262 --> 00:52:13,931
CHINESE GOVERNMENT
DOESN'T ALLOW ANY OF THOSE
COMPANIES TO OPERATE
1105
00:52:13,964 --> 00:52:18,469
THE WAY THEY OPERATE
IN THIS COUNTRY,
OR AT ALL.
1106
00:52:18,503 --> 00:52:20,538
THIS IS ABOUT FREEDOM,
ULTIMATELY.
1107
00:52:20,571 --> 00:52:22,873
YOU KNOW, WE'RE 50 YARDS
1108
00:52:22,907 --> 00:52:24,609
FROM THE OLD
WORLD TRADE CENTER HERE
1109
00:52:24,642 --> 00:52:27,378
AND I THINK ALL OF US
NEVER WANT TO SEE
1110
00:52:27,412 --> 00:52:29,714
ANYTHING LIKE THAT HAPPEN
AGAIN, AND IT WOULD HAVE
BEEN A LOT HARDER
1111
00:52:29,747 --> 00:52:31,449
FOR 9/11
TO EVER HAVE OCCURRED
1112
00:52:31,482 --> 00:52:32,717
HAD WE HAD
THE PROTECTIONS IN PLACE
1113
00:52:32,750 --> 00:52:34,519
THAT WOULD
PREVENT THE MOVEMENT
1114
00:52:34,552 --> 00:52:36,921
OF MASSIVE AMOUNTS OF MONEY
AROUND THE GLOBE
1115
00:52:36,954 --> 00:52:41,292
BY PEOPLE WHO WOULD
WANT TO KILL EVERYBODY
IN THIS ROOM,
1116
00:52:41,326 --> 00:52:44,295
SO I THINK THE KEY IS
1117
00:52:44,329 --> 00:52:46,697
TO NOT CREATE
USELESS REGULATION
1118
00:52:46,731 --> 00:52:50,301
BUT I THINK THE MOTIVES
BEHIND A LOT OF THOSE RULES
1119
00:52:50,335 --> 00:52:54,171
ARE TO ENSURE WE DON'T
MISS SOMETHING AGAIN.
1120
00:52:55,473 --> 00:52:56,874
[VOORHEES]
SINCE 2001,
1121
00:52:56,907 --> 00:53:00,378
THERE'S THIS ABSURD
OBSESSION WITH TERRORISM.
1122
00:53:00,411 --> 00:53:02,613
SO ANY TIME A REGULARY
GETS UP AND SAYS,
1123
00:53:02,647 --> 00:53:04,482
"WELL, BITCOIN CAN BE USED
FOR TERRORISM."
1124
00:53:04,515 --> 00:53:06,451
WELL, OF COURSE IT CAN.
SO CAN ANYTHING.
1125
00:53:06,484 --> 00:53:08,886
SO CAN CELL PHONES
AND SO CAN THE INTERNET
AND SO CAN THE CAR.
1126
00:53:08,919 --> 00:53:12,557
IT DOESN'T MEAN THAT
WE SHOULD STIFLE THE GROWTH
OF THOSE INDUSTRIES
1127
00:53:12,590 --> 00:53:14,359
JUST BECAUSE BAD PEOPLE
CAN USE IT.
1128
00:53:29,974 --> 00:53:31,976
[NEWSCASTER]
THIS HAS ARGUABLY BEEN
THE WORST WEEK
1129
00:53:32,009 --> 00:53:33,844
IN THE CRYPTOCURRENCY'S
SHORT LIFE,
1130
00:53:33,878 --> 00:53:38,283
STUNNED BY THE COLLAPSE
OF ONCE-DOMINANT EXCHANGE
MT. GOX.
1131
00:53:38,316 --> 00:53:42,387
NOW THAT FAILED FIRM'S CEO
MARK KARPELES IS IN HIDING.
1132
00:53:42,420 --> 00:53:46,824
SOME 750,000 BITCOINS
ALLEGEDLY STOLEN OR LOST
1133
00:53:46,857 --> 00:53:50,628
WHICH ACCOUNTS FOR ABOUT 6%
OF THE TOTAL CIRCULATION.
1134
00:53:52,497 --> 00:53:53,998
[POPPER]
BY THE TIME
MT. GOX WENT DOWN,
1135
00:53:54,031 --> 00:53:57,034
IT WAS HOLDING WHAT
ITS CUSTOMERS BELIEVED
1136
00:53:57,067 --> 00:53:59,504
WERE ABOUT
A HALF A BILLION DOLLARS
1137
00:53:59,537 --> 00:54:02,307
WORTH OF THEIR BITCOINS
AND THE COMPANY'S BITCOINS.
1138
00:54:02,340 --> 00:54:05,710
IT WAS NO LONGER THE LARGEST
EXCHANGE IN THE WORLD.
1139
00:54:05,743 --> 00:54:07,745
BUT PART OF
WHAT'S SO AMAZING IS
1140
00:54:07,778 --> 00:54:10,481
THAT PEOPLE KEPT USING IT
1141
00:54:10,515 --> 00:54:13,551
EVEN AFTER THERE HAD BEEN
NUMEROUS INCIDENTS
1142
00:54:13,584 --> 00:54:15,386
IN WHICH IT WAS CLEAR
THAT THE COMPANY
1143
00:54:15,420 --> 00:54:17,955
WAS NOT UP TO THE TASK
OF SAFEGUARDING THE MONEY.
1144
00:54:24,929 --> 00:54:27,498
AND THE ONLY REASON HE SURVIVED
AS LONG AS HE DID
1145
00:54:27,532 --> 00:54:29,900
WAS BECAUSE IN 2013,
THE PRICE STARTED GOING UP.
1146
00:54:29,934 --> 00:54:31,702
PEOPLE KEPT
PUTTING MONEY INTO IT.
1147
00:54:31,736 --> 00:54:33,938
HE HAD MORE AND MORE MONEY
'CAUSE THE PRICE WAS GOING UP,
1148
00:54:33,971 --> 00:54:35,840
BUT AS SOON AS
THE PRICE STARTED GOING DOWN,
1149
00:54:35,873 --> 00:54:36,841
THIS IS WHAT HAPPENED,
RIGHT?
1150
00:54:36,874 --> 00:54:39,410
IT PEAKS IN LATE 2013.
1151
00:54:39,444 --> 00:54:40,911
IT STARTS COMING DOWN
IN 2014.
1152
00:54:40,945 --> 00:54:43,047
SOON AS THAT PRICE
STARTED COMING DOWN,
1153
00:54:43,080 --> 00:54:45,383
IT ALL JUST TUMBLED FOR HIM.
1154
00:54:45,416 --> 00:54:47,485
GOX WAS GOING TO COLLAPSE.
1155
00:54:47,518 --> 00:54:48,953
THAT IT LASTED
AS LONG AS IT DID
1156
00:54:48,986 --> 00:54:51,989
WAS ACTUALLY
KIND OF A STROKE OF FATE.
1157
00:54:52,022 --> 00:54:53,558
BUT ITS FAILURE WAS
1158
00:54:53,591 --> 00:54:55,560
IT DIDN'T HAVE
THE KIND OF MORE BORING
1159
00:54:55,593 --> 00:54:57,094
MAINSTREAM
INSTITUTIONAL CONTROLS
1160
00:54:57,127 --> 00:54:59,864
THAT WE REQUIRE TO BRING IT
TO THE NEXT LEVEL.
1161
00:54:59,897 --> 00:55:02,833
AND THERE'S A WHOLE BUNCH
OF MONEY MISSING,
1162
00:55:02,867 --> 00:55:04,869
AND NO ONE KNOWS
IF THEY JUST LOST IT,
1163
00:55:04,902 --> 00:55:05,970
IT IF WAS STOLEN FROM THEM,
1164
00:55:06,003 --> 00:55:08,406
IF THEY EMBEZZLED IT OR WHAT,
1165
00:55:08,439 --> 00:55:11,008
BUT THE IMPORTANT
LESSON FROM GOX
1166
00:55:11,041 --> 00:55:13,378
ISN'T THAT BITCOIN
DOESN'T WORK.
1167
00:55:13,411 --> 00:55:15,413
THE IMPORTANT LESSON
FROM GOX
1168
00:55:15,446 --> 00:55:17,615
IS THAT YOU DON'T
LEAVE YOUR MONEY WITH
A TRUSTED THIRD PARTY
1169
00:55:17,648 --> 00:55:19,550
BECAUSE YOU CAN'T
ALWAYS TRUST THEM.
1170
00:55:19,584 --> 00:55:20,985
YOU CAN ONLY TRUST THEM
UNTIL YOU CAN'T.
1171
00:55:21,018 --> 00:55:22,787
THIS WAS ALSO A LESSON
THAT PEOPLE WERE
1172
00:55:22,820 --> 00:55:24,121
SUPPOSED TO LEARN
DURING THE FINANCIAL CRISIS
1173
00:55:24,154 --> 00:55:26,591
BUT THEY DON'T SEEM
TO HAVE LEARNED IT YET.
1174
00:55:29,126 --> 00:55:30,728
[VIGNA]
MARK KARPELES
1175
00:55:30,761 --> 00:55:32,797
WAS A GAMER.
1176
00:55:32,830 --> 00:55:35,065
HE WAS NOT A FINANCE PRO.
1177
00:55:35,099 --> 00:55:37,735
HE REALLY DIDN'T KNOW
WHAT HE WAS DOING,
1178
00:55:37,768 --> 00:55:40,805
AND HE DIDN'T BUILD IT.
JED MCCALEB BUILT IT.
1179
00:55:40,838 --> 00:55:42,407
HE DIDN'T IMPROVE UPON IT.
1180
00:55:42,440 --> 00:55:44,609
I MEAN, IT LURCHED
FROM CRISIS TO CRISIS
1181
00:55:44,642 --> 00:55:46,844
THROUGHOUT
THE ENTIRE HISTORY.
1182
00:55:46,877 --> 00:55:50,715
LAST YEAR WAS
A TERRIBLE YEAR FOR BITCOIN,
1183
00:55:50,748 --> 00:55:52,683
AND AN ESPECIALLY
TERRIBLE YEAR FOR
THE FOUNDATION,
1184
00:55:52,717 --> 00:55:55,886
BECAUSE WE HAD
TWO OF THE PEOPLE
ON OUR BOARD OF DIRECTORS
1185
00:55:55,920 --> 00:55:59,657
WHO HAD TO RESIGN
IN DISGRACE, BASICALLY.
1186
00:55:59,690 --> 00:56:02,527
YOU KNOW, MY EXPERTISE
IS TECHNOLOGY.
1187
00:56:02,560 --> 00:56:05,396
MY EXPERTISE IS NOT
FIGURING OUT, LIKE,
1188
00:56:05,430 --> 00:56:07,031
WHO'S TRUSTWORTHY,
WHO'S NOT,
1189
00:56:07,064 --> 00:56:08,866
WHICH BUSINESSES
ARE GONNA SUCCEED,
1190
00:56:08,899 --> 00:56:10,935
WHICH BUSINESSES
ARE GONNA FAIL.
1191
00:56:10,968 --> 00:56:12,903
[LAWSKY]
AFTER WE HAD
HELD OUR HEARINGS,
1192
00:56:12,937 --> 00:56:17,842
WE THOUGHT WE WOULD TAKE
SIX MONTHS TO NINE MONTHS,
EVEN A YEAR,
1193
00:56:17,875 --> 00:56:19,777
TO DRAFT
OUR INITIAL REGULATIONS.
1194
00:56:19,810 --> 00:56:21,446
THIS WAS SO COMPLICATED
THAT WE WANTED
1195
00:56:21,479 --> 00:56:23,881
TO REALLY TAKE OUR TIME
AND GET IT RIGHT.
1196
00:56:23,914 --> 00:56:26,817
WHAT HAPPENED WAS, THOUGH,
MT. GOX COLLAPSED.
1197
00:56:26,851 --> 00:56:28,085
AND I THINK THAT GAVE US
1198
00:56:28,118 --> 00:56:30,455
A REAL RENEWED
SENSE OF URGENCY,
1199
00:56:30,488 --> 00:56:33,157
AND WE REALIZED THAT
IF WE GOT REGULATION RIGHT,
1200
00:56:33,190 --> 00:56:36,527
WE COULD CREATE MORE CONFIDENCE
IN BITCOIN, FRANKLY,
1201
00:56:36,561 --> 00:56:38,963
AS OPPOSED TO THE SORT OF
LOSS OF CONFIDENCE YOU SAW
1202
00:56:38,996 --> 00:56:41,566
NOT ONLY
FROM THE SILK ROAD CASE
1203
00:56:41,599 --> 00:56:43,434
BUT ALSO FROM THE COLLAPSE
OF MT. GOX.
1204
00:56:43,468 --> 00:56:45,002
[NEWSCASTER]
SO YOUR SENSE, THOUGH,
1205
00:56:45,035 --> 00:56:46,771
OF THE REGULATORS,
RIGHT NOW.
1206
00:56:46,804 --> 00:56:47,938
I ASSUME YOU'VE
HAD CONVERSATIONS.
1207
00:56:47,972 --> 00:56:49,540
THE DISCUSSIONS
THAT WE'VE HAD,
1208
00:56:49,574 --> 00:56:51,509
I THINK EVERYBODY
RECOGNIZES THE INNOVATION
1209
00:56:51,542 --> 00:56:53,110
AND DOESN'T WANT
TO STIFLE IT.
1210
00:56:53,143 --> 00:56:55,480
THEY JUST WANT TO MAKE SURE
THAT THERE'S HEALTHY REGULATION
1211
00:56:55,513 --> 00:56:58,516
SO IT'S USED IN A SAFE
AND PRODUCTIVE MANNER.
1212
00:57:00,851 --> 00:57:03,153
[SPANOS]
I'M NOT GIVING UP ON NEW YORK.
NEW YORK'S GIVING UP ON ME.
1213
00:57:03,187 --> 00:57:05,690
I CAN'T EVEN TURN ON
THE BITCOIN MACHINE.
1214
00:57:05,723 --> 00:57:07,858
AN ATM,
I CAN'T TURN IT ON.
1215
00:57:07,892 --> 00:57:10,461
I CAN'T MAKE TRADES.
I CAN'T DO ANYTHING.
1216
00:57:10,495 --> 00:57:14,231
THERE'S NO CASH FLOW
AT ALL.
1217
00:57:14,264 --> 00:57:16,200
AND IT'S POTENTIAL
REGULATION.
1218
00:57:16,233 --> 00:57:19,604
IT'S REGULATIONS
I SHOULD BELIEVE
1219
00:57:19,637 --> 00:57:21,639
IS COMING DOWN THE PIPE.
1220
00:57:21,672 --> 00:57:24,875
LIKE, I DON'T WANT TO DO
ANYTHING THAT SOMEONE'S
FROWNING UPON
1221
00:57:24,909 --> 00:57:27,812
RIGHT NEXT DOOR
TO THE STOCK MARKET.
1222
00:57:27,845 --> 00:57:29,113
THEY'RE GONNA LOCK ME UP.
1223
00:57:29,146 --> 00:57:30,881
YOU KNOW, YOU CAN'T
HAVE AN EXCHANGE.
1224
00:57:30,915 --> 00:57:32,683
WELL, WE DON'T.
PEOPLE MEET THERE
1225
00:57:32,717 --> 00:57:33,984
AND EXCHANGE
WITH EACH OTHER.
1226
00:57:34,018 --> 00:57:36,220
NEW YORK'S SITTING THERE
ON THE HIGH HORSE,
1227
00:57:36,253 --> 00:57:38,255
AND THE WHOLE WORLD'S
WAITING
1228
00:57:38,288 --> 00:57:41,759
ON NEW YORK TO CREATE
SOME FUCKIN' LICENSE.
1229
00:57:50,200 --> 00:57:52,770
[POPPER]
ULTIMATELY LAWSKY'S OFFICE
BROUGHT OUT
1230
00:57:52,803 --> 00:57:54,672
THE FINAL RULES
FOR THE BITLICENSE
1231
00:57:54,705 --> 00:57:56,574
IN THE SPRING OF 2015.
1232
00:57:56,607 --> 00:58:00,945
A LOT OF COMPANIES COMPLAINED
THAT THE REGULATIONS
1233
00:58:00,978 --> 00:58:04,181
WERE TOO BURDENSOME FOR THEM
TO OPERATE IN NEW YORK
1234
00:58:04,214 --> 00:58:05,683
AND STILL MAKE MONEY.
1235
00:58:05,716 --> 00:58:07,284
[TUCKER]
I SAW JUST OVERNIGHT
1236
00:58:07,317 --> 00:58:09,887
DOZENS OF COMPANIES THAT WERE
ON THE VERGE OF LAUNCHING.
1237
00:58:09,920 --> 00:58:12,657
THEY JUST THREW IN THE TOWEL
AND SAID, "WE CAN'T
AFFORD THIS."
1238
00:58:12,690 --> 00:58:14,859
ERIK VOORHEES' NEW COMPANY
SHAPESHIFT
1239
00:58:14,892 --> 00:58:16,994
WOULD HAVE HAD TO APPLY
FOR THE BITLICENSE
1240
00:58:17,027 --> 00:58:19,530
IF IT WANTED TO KEEP
CUSTOMERS IN NEW YORK.
1241
00:58:21,131 --> 00:58:23,701
SO, IN MY LAP HERE
I HAVE THE--
1242
00:58:23,734 --> 00:58:25,970
THE APPLICATION FORMS
FOR LICENSE TO ENGAGE
1243
00:58:26,003 --> 00:58:28,205
IN VIRTUAL CURRENCY
BUSINESS ACTIVITY,
1244
00:58:28,238 --> 00:58:31,976
WHICH IS A VERY STATIST WAY
OF SAYING THE BITLICENSE.
1245
00:58:32,009 --> 00:58:35,279
THE IS THE APPLICATION
TO BE APPROVED
1246
00:58:35,312 --> 00:58:39,884
TO DO BASICALLY WHAT WE'VE
ALL BEEN DOING FOR YEARS NOW,
1247
00:58:39,917 --> 00:58:41,919
WHICH IS BUILDING BITCOIN
COMPANIES IN NEW YORK.
1248
00:58:41,952 --> 00:58:45,856
AND A LOT OF
STUFF IN HERE I PERSONALLY
FEEL IS UNETHICAL,
1249
00:58:45,890 --> 00:58:47,558
SO WE'RE NOT GONNA
COMPLY WITH IT,
1250
00:58:47,592 --> 00:58:49,126
WHICH MEANS WE HAVE TO BLOCK
NEW YORKERS ENTIRELY.
1251
00:58:49,159 --> 00:58:50,595
AND WHEN
AN ENTIRE NEW INDUSTRY
1252
00:58:50,628 --> 00:58:52,129
STARTS BLOCKING
A PLACE LIKE NEW YORK
1253
00:58:52,162 --> 00:58:54,699
THAT USED TO BE THE FINANCIAL
CENTER OF THE WORLD,
1254
00:58:54,732 --> 00:58:58,703
HOPEFULLY SOME OF THOSE
POLITICIANS WILL TAKE NOTICE.
1255
00:58:58,736 --> 00:59:00,170
THE POINT OF IT
IS TO, ONE,
1256
00:59:00,204 --> 00:59:01,906
MAKE SURE THERE ARE ENOUGH
CONSUMER PROTECTIONS;
1257
00:59:01,939 --> 00:59:04,609
TWO, MAKE SURE WE HAVE
ADEQUATE CYBERSECURITY;
1258
00:59:04,642 --> 00:59:09,113
THREE, MAKE SURE THAT
THE COMPANIES ARE ADEQUATELY
CAPITALIZED
1259
00:59:09,146 --> 00:59:11,248
SO THEY DON'T COLLAPSE
UPON THEMSELVES.
1260
00:59:11,281 --> 00:59:14,218
[CASEY]
YOU KNOW, YOU'VE SEEN
A TUG OF WAR
1261
00:59:14,251 --> 00:59:17,354
BETWEEN THE HARD LINERS
AND THOSE WHO ARE SAYING,
1262
00:59:17,387 --> 00:59:18,923
"YOU KNOW,
YOU'VE GOT TO HAVE
1263
00:59:18,956 --> 00:59:21,726
ENOUGH SPACE
FOR INNOVATION IN HERE,"
1264
00:59:21,759 --> 00:59:24,061
AND THE SYSTEM HAS COME OUT,
I THINK,
1265
00:59:24,094 --> 00:59:26,864
PROBABLY STRONGER
AS A RESULT OF THAT
1266
00:59:26,897 --> 00:59:28,699
AND THERE'S
A WIDESPREAD VIEW
1267
00:59:28,733 --> 00:59:30,901
AMONGST CERTAINLY
THE BUSINESS BITCOIN COMMUNITY
1268
00:59:30,935 --> 00:59:33,303
THAT SOME LEVEL
OF REGULATION
1269
00:59:33,337 --> 00:59:35,039
GIVES LEGITIMACY
TO WHAT THEY'RE DOING.
1270
00:59:35,072 --> 00:59:36,741
IT GIVES PEOPLE
CONFIDENCE IN WHAT
THEY'RE DOING.
1271
00:59:36,774 --> 00:59:39,109
THIS IS AN IMPORTANT PART
OF GROWING UP.
1272
00:59:39,143 --> 00:59:41,178
ULTIMATELY, THEY'RE NOT
GOING TO GET IT RIGHT,
1273
00:59:41,211 --> 00:59:44,114
BECAUSE NO REGULATION
IS EVER RIGHT.
1274
00:59:44,148 --> 00:59:46,283
BUT I'M HIGHLY CONFIDENT
1275
00:59:46,316 --> 00:59:49,820
THAT WHATEVER HAPPENS
GOING FORWARD,
1276
00:59:49,854 --> 00:59:51,656
THE BITLICENSE
WILL BE LOOKED AT
1277
00:59:51,689 --> 00:59:53,123
AS A POSITIVE DEVELOPMENT
1278
00:59:53,157 --> 00:59:55,359
IN THE EVOLUTION OF BITCOIN
1279
00:59:55,392 --> 00:59:58,195
BECAUSE IT JUST REMOVED
ONE OF THE BIGGEST PIECES
OF UNCERTAINTY,
1280
00:59:58,228 --> 01:00:01,298
WHICH IS HOW IS THIS INDUSTRY
GOING TO BE REGULATED.
1281
01:00:01,331 --> 01:00:05,302
I THINK MOST OF US--
AT LEAST A LOT OF US--
1282
01:00:05,335 --> 01:00:07,304
THINK THAT
SENSIBLE REGULATION
1283
01:00:07,337 --> 01:00:08,706
THAT SETS GUIDELINES
1284
01:00:08,739 --> 01:00:10,775
THAT MAKES SURE
PEOPLE'S MONEY
1285
01:00:10,808 --> 01:00:12,943
DOESN'T JUST GO INTO
A BLACK HOLE
1286
01:00:12,977 --> 01:00:15,713
THAT THAT'S
A REALLY IMPORTANT THING,
1287
01:00:15,746 --> 01:00:17,214
THAT REGULATION.
1288
01:00:17,247 --> 01:00:19,316
I'M SURE SATOSHI
WOULDN'T BE HAPPY
1289
01:00:19,349 --> 01:00:20,818
TO SEE THIS KIND OF THING,
1290
01:00:20,851 --> 01:00:22,753
WHICH IS NOT BASED
ON THE LOGIC AND REASON
1291
01:00:22,787 --> 01:00:24,221
THAT A PROGRAMMER
IS USED TO.
1292
01:00:24,254 --> 01:00:27,024
I THINK A LOT OF DEVELOPERS,
UNDERSTANDABLY SO,
1293
01:00:27,057 --> 01:00:31,428
TRY TO STAY OUT OF
THE POLITICAL NONSENSE.
1294
01:00:31,461 --> 01:00:33,698
[NEWSCASTER]
IT HAS BEEN ONE OF
THE BIGGEST MYSTERIES
1295
01:00:33,731 --> 01:00:34,899
RAGING ACROSS
THE INTERNET:
1296
01:00:34,932 --> 01:00:36,934
WHO IS SATOSHI NAKAMOTO?
1297
01:00:36,967 --> 01:00:38,769
NEWSWEEK PUBLISHED
AN ARTICLE
1298
01:00:38,803 --> 01:00:41,371
CLAIMING THE MAN
IN THESE IMAGES IS
THE BITCOIN FOUNDER.
1299
01:00:41,405 --> 01:00:43,440
THE MAN WHO
CREATED BITCOIN,
1300
01:00:43,473 --> 01:00:45,175
IS KNOWN AS
THE FATHER OF BITCOIN,
1301
01:00:45,209 --> 01:00:49,046
THE ONLINE CURRENCY
NOW WORTH BILLIONS.
1302
01:00:49,079 --> 01:00:50,748
WHEN YOU ASKED HIM
ABOUT BITCOIN,
1303
01:00:50,781 --> 01:00:52,983
AND HE SAYS, "I CAN'T TALK
ABOUT THIS ANYMORE,"
1304
01:00:53,017 --> 01:00:54,919
HE WAS NOT REFERRING
TO BITCOIN.
1305
01:00:54,952 --> 01:00:57,287
BUT WITH ME, HE DEFINITELY
ACKNOWLEDGED BITCOIN.
1306
01:00:57,321 --> 01:00:58,756
I THINK AT THIS POINT NOW
HE'S SAYING
1307
01:00:58,789 --> 01:01:00,657
HE WAS CONFUSED
BY THE CONVERSATION.
1308
01:01:01,792 --> 01:01:02,927
CLEARLY SOMEBODY THOUGHT
1309
01:01:02,960 --> 01:01:05,129
THAT WE DID THIS
AS AN ACT OF WAR
1310
01:01:05,162 --> 01:01:07,031
AGAINST SATOSHI NAKAMOTO
OR BITCOIN,
1311
01:01:07,064 --> 01:01:08,365
AND I WANT
TO BE VERY CLEAR
1312
01:01:08,398 --> 01:01:12,102
THAT I CERTAINLY NEVER
MEANT IT THAT WAY.
1313
01:01:12,136 --> 01:01:14,905
I HAVE NOTHING TO DO
WITH BITCOIN.
1314
01:01:14,939 --> 01:01:17,708
[VIGNA]
IT WAS A MONSTER STORY.
1315
01:01:17,742 --> 01:01:19,143
HOW DID THEY FIGURE IT OUT?
1316
01:01:19,176 --> 01:01:20,845
OH, MY GOD, LOOK AT
THIS GUY THAT THEY NAMED.
1317
01:01:20,878 --> 01:01:23,147
HIS NAME IS
DORIAN SATOSHI NAKAMOTO,
1318
01:01:23,180 --> 01:01:24,949
LIVING IN CALIFORNIA,
1319
01:01:24,982 --> 01:01:26,717
BASICALLY HIDING
IN PLAIN SIGHT.
1320
01:01:26,751 --> 01:01:29,820
IT BECOMES A GIGANTIC
MEDIA SCRAMBLE,
1321
01:01:29,854 --> 01:01:31,956
AND THEN DORIAN EMERGES
FROM HIS HOUSE
1322
01:01:31,989 --> 01:01:34,424
LOOKING KIND OF DISHEVELED,
LOOKING KIND OF CONFUSED,
1323
01:01:34,458 --> 01:01:37,361
AND SAYS
HE'S NOT SATOSHI NAKAMOTO,
1324
01:01:37,394 --> 01:01:39,229
SAYS HE'S NEVER HEARD
OF BITCOIN.
1325
01:01:39,263 --> 01:01:41,065
HE DOESN'T UNDERSTAND.
HE HAD ONE CONVERSATION
WITH LEAH.
1326
01:01:41,098 --> 01:01:42,266
SHE MISUNDERSTOOD
WHAT HE SAID,
1327
01:01:42,299 --> 01:01:45,069
SHE TOOK IT
THE WRONG WAY.
1328
01:01:45,102 --> 01:01:48,072
AND YOU PROBABLY WOULD HAVE
HAD TO HAVE BEEN
A CYPHERPUNK
1329
01:01:48,105 --> 01:01:49,840
TO UNDERSTAND ALL
THE ELEMENTS OF IT
1330
01:01:49,874 --> 01:01:51,375
THAT HAD ALREADY BEEN
PUT TOGETHER.
1331
01:01:51,408 --> 01:01:53,277
THE ODDS OF IT SEEMED
VERY LOW TO ME
1332
01:01:53,310 --> 01:01:55,846
THAT IT WAS SOMEBODY
FROM COMPLETELY OUTSIDE
THAT COMMUNITY
1333
01:01:55,880 --> 01:01:58,115
WHO HAPPENED TO KNOW
ALL THESE DIFFERENT THINGS
1334
01:01:58,148 --> 01:02:00,384
AND PUT THIS TOGETHER
AND APPEAR OUT OF NOWHERE.
1335
01:02:03,220 --> 01:02:05,422
[GREENBERG]
THE DAY THAT "NEWSWEEK'S"
STORY CAME OUT
1336
01:02:05,455 --> 01:02:07,992
NAMING DORIAN NAKAMOTO
AS THE CREATOR OF BITCOIN,
1337
01:02:08,025 --> 01:02:10,294
I GOT THIS EMAIL
FROM AN OLD ACQUAINTANCE
1338
01:02:10,327 --> 01:02:12,830
THAT WAS TITLED
"WHAT ARE THE ODDS?"
1339
01:02:12,863 --> 01:02:17,267
AND IT LAID OUT THE FACT
THAT HAL FINNEY
1340
01:02:17,301 --> 01:02:20,137
LIVES LESS THAN
TWO MILES AWAY FROM
1341
01:02:20,170 --> 01:02:22,172
THE KNOWN ADDRESS
OF DORIAN NAKAMOTO
1342
01:02:22,206 --> 01:02:24,008
WHERE "NEWSWEEK"
HAD FOUND HIM.
1343
01:02:24,041 --> 01:02:27,244
AND HAL FINNEY IS THE NUMBER TWO
EVER USER OF BITCOIN,
1344
01:02:27,277 --> 01:02:30,047
WHO RECEIVED THE FIRST
BITCOIN TRANSACTION.
1345
01:02:30,080 --> 01:02:32,482
HE WORKED ON
AN EARLY PROTOTYPE
1346
01:02:32,516 --> 01:02:34,384
OF AN ANONYMOUS
CURRENCY SYSTEM.
1347
01:02:34,418 --> 01:02:36,153
HE WAS A CYPHERPUNK.
1348
01:02:38,355 --> 01:02:41,325
SO HOW COULD IT BE
THAT THE PURPORTED CREATOR
OF BITCOIN
1349
01:02:41,358 --> 01:02:44,929
AND THIS KNOWN, CONFIRMED,
SECOND-EVER USER OF BITCOIN,
1350
01:02:44,962 --> 01:02:46,430
HADN'T EVER COLLABORATED?
1351
01:02:46,463 --> 01:02:48,899
THAT HAL FINNEY, WHO WAS LESS
THAN TWO MILES AWAY
1352
01:02:48,933 --> 01:02:51,401
FROM DORIAN NAKAMOTO
HADN'T HELPED TO CREATE BITCOIN?
1353
01:02:51,435 --> 01:02:54,038
OR MAYBE HE REALLY WAS
THE CREATOR OF BITCOIN.
1354
01:02:54,071 --> 01:02:56,540
MAYBE HAL FINNEY
WAS SATOSHI NAKAMOTO.
1355
01:02:58,508 --> 01:03:00,945
[POPPER]
WHEN YOU LOOK AT
THE BITCOIN WHITE PAPER,
1356
01:03:00,978 --> 01:03:05,182
IT MADE REFERENCE TO
A LOT OF THE EARLIER PROJECTS
1357
01:03:05,215 --> 01:03:07,217
THAT FED INTO BITCOIN.
1358
01:03:07,251 --> 01:03:11,588
BUT IT'S VERY NOTABLE
THAT THE ONE PROJECT
IT DOESN'T REFER TO
1359
01:03:11,621 --> 01:03:13,290
IS NICK SZABO'S BIT GOLD,
1360
01:03:13,323 --> 01:03:15,292
WHICH IS PERHAPS
THE CLOSEST PRECEDENT
1361
01:03:15,325 --> 01:03:18,562
AND THE CLOSEST PARALLEL
TO BITCOIN.
1362
01:03:18,595 --> 01:03:20,397
[ANDRESEN]
I MEAN, BIT GOLD
IS SO CLOSE TO BITCOIN,
1363
01:03:20,430 --> 01:03:21,866
IT'S HARD NOT TO THINK
1364
01:03:21,899 --> 01:03:25,903
THAT, YOU KNOW,
MAYBE NICK IS SATOSHI.
1365
01:03:28,138 --> 01:03:31,141
[VIGNA]
A LOT OF PEOPLE WILL SAY
"NAKAMOTO MUST BE SZABO."
1366
01:03:31,175 --> 01:03:32,476
"NAKAMOTO
MUST HAVE BEEN FINNEY."
1367
01:03:32,509 --> 01:03:34,578
BUT I DON'T THINK
HE WAS TRYING TO LEAVE
1368
01:03:34,611 --> 01:03:37,281
ANY BREADCRUMBS OUT THERE
FOR ANYBODY TO FOLLOW.
1369
01:03:39,616 --> 01:03:41,185
[GREENBERG]
I TOLD MY EDITOR ABOUT IT.
1370
01:03:41,218 --> 01:03:43,888
HE AGREED THAT
"YOU FOUND SATOSHI NAKAMOTO."
1371
01:03:43,921 --> 01:03:46,056
SO I GOT ON A PLANE
TO SANTA BARBARA
1372
01:03:46,090 --> 01:03:48,625
AND I DROVE OUT
TO HAL FINNEY'S HOUSE.
1373
01:03:48,658 --> 01:03:51,428
BUT AT THIS STAGE,
HE WAS ALREADY
1374
01:03:51,461 --> 01:03:53,898
COMPLETELY PARALYZED
BY ALS,
1375
01:03:53,931 --> 01:03:57,968
THIS REALLY AWFUL,
DEBILITATING TERMINAL ILLNESS
1376
01:03:58,002 --> 01:04:00,537
THAT SLOWLY
SHUTS DOWN YOUR BODY
1377
01:04:00,570 --> 01:04:03,540
WHILE LEAVING YOUR MIND
COMPLETELY INTACT.
1378
01:04:03,573 --> 01:04:07,477
AND THE TIME WHEN
HE STARTED TO FADE IN
HIS PHYSICAL ABILITIES
1379
01:04:07,511 --> 01:04:09,213
DID ROUGHLY COINCIDE
WITH THE TIME
1380
01:04:09,246 --> 01:04:11,481
THAT SATOSHI NAKAMOTO
STARTED TO DISAPPEAR.
1381
01:04:11,515 --> 01:04:13,383
NOW MAYBE THE REASON
THAT SATOSHI NAKAMOTO
1382
01:04:13,417 --> 01:04:15,552
HAD CHOSEN TO FADE AWAY
1383
01:04:15,585 --> 01:04:18,555
WAS BECAUSE HAL FINNEY
WAS PHYSICALLY FADING.
1384
01:04:21,525 --> 01:04:25,162
[POPPER]
THERE HAVE BEEN A NUMBER
OF STYLOMETRIC STUDIES
1385
01:04:25,195 --> 01:04:28,132
AND YOU SEE SO MANY
OF THESE SIMILARITIES
1386
01:04:28,165 --> 01:04:30,901
BETWEEN SATOSHI'S WRITINGS
AND THOSE OF NICK'S,
1387
01:04:30,935 --> 01:04:33,570
INCLUDING THESE LITTLE THINGS
LIKE HAVING TWO SPACES
1388
01:04:33,603 --> 01:04:35,239
AT THE BEGINNING
OF A SENTENCE,
1389
01:04:35,272 --> 01:04:38,075
AND PHRASES AND SPELLINGS
THAT NOBODY ELSE USES.
1390
01:04:39,709 --> 01:04:43,280
[GREENBERG]
SO I TALKED TO HAL AS MUCH AS I
COULD, MOSTLY IN A KIND OF
1391
01:04:43,313 --> 01:04:49,453
ONE-WAY INTERVIEW BECAUSE HE
COULD REALLY ONLY RESPOND
WITH YES AND NO ANSWERS,
1392
01:04:49,486 --> 01:04:52,089
AND HE DENIED BEING
SATOSHI NAKAMOTO.
1393
01:04:52,122 --> 01:04:54,158
YOU COULD TELL
THAT HE WAS AMUSED
BY THE WHOLE IDEA
1394
01:04:54,191 --> 01:04:55,625
THAT I THOUGHT
HE WAS SATOSHI NAKAMOTO.
1395
01:04:55,659 --> 01:04:58,996
[POPPER]
ONE OF THE REALLY
REMARKABLE THINGS
1396
01:04:59,029 --> 01:05:00,264
FROM NICK SZABO'S WRITING
1397
01:05:00,297 --> 01:05:02,599
IN THOSE MONTHS
BEFORE BITCOIN
1398
01:05:02,632 --> 01:05:06,370
WAS PUBLICALLY LAUNCHED
IS THAT NICK,
1399
01:05:06,403 --> 01:05:08,438
IN RESPONDING
TO SOME COMMENTS
1400
01:05:08,472 --> 01:05:11,108
ABOUT A POST HE HAD MADE
ABOUT BIT GOLD,
1401
01:05:11,141 --> 01:05:14,278
ACTUALLY ASKED THE OTHER PEOPLE
WHO WERE READING HIM
1402
01:05:14,311 --> 01:05:18,348
IF ANYBODY WANTED TO HELP HIM
CODE THIS IDEA UP
1403
01:05:18,382 --> 01:05:21,018
INTO REAL SOFTWARE
THAT COULD WORK.
1404
01:05:21,051 --> 01:05:22,519
IT WAS NEVER TURNED
INTO A REALITY,
1405
01:05:22,552 --> 01:05:24,521
BUT WHEN YOU
LOOK AT BIT GOLD,
1406
01:05:24,554 --> 01:05:29,293
IT'S HARD NOT TO BE STRUCK
BY THE SIMILARITIES
1407
01:05:29,326 --> 01:05:32,362
BETWEEN IT AND BITCOIN.
1408
01:05:38,235 --> 01:05:40,137
IT'S POSSIBLE.
1409
01:05:40,170 --> 01:05:42,206
HAL COULD'VE
BEEN THE CODER.
1410
01:05:44,274 --> 01:05:46,043
I DON'T KNOW.
1411
01:05:46,076 --> 01:05:47,611
YOU KNOW, THIS IDEA THAT--
THAT HAL FINNEY COULD'VE BEEN
1412
01:05:47,644 --> 01:05:51,982
THE KIND OF GHOST CODER
FOR BITCOIN...
1413
01:05:52,016 --> 01:05:54,684
I GUESS IT'S POSSIBLE.
1414
01:05:54,718 --> 01:05:57,087
OTHER PEOPLE KIND OF
SPECULATING ON REDDIT
1415
01:05:57,121 --> 01:05:59,156
OR OTHER PARTS
OF THE INTERNET
1416
01:05:59,189 --> 01:06:01,325
THOUGHT THAT
MAYBE HAL FINNEY
1417
01:06:01,358 --> 01:06:04,261
HAD USED DORIAN NAKAMOTO
AS A PATSY.
1418
01:06:04,294 --> 01:06:07,264
IF HE WERE EVER TRACED
BACK TO DORIAN NAKAMOTO,
1419
01:06:07,297 --> 01:06:10,267
IT SEEMED LIKE THIS GUY
WAS THE CREATOR,
1420
01:06:10,300 --> 01:06:13,303
AND HAL FINNEY WOULD BE
SORT OF IMMUNIZED FROM IT.
1421
01:06:13,337 --> 01:06:17,241
EVERYONE ELSE WHO WAS
INVOLVED IN THE PROJECTS
1422
01:06:17,274 --> 01:06:19,676
LEADING UP TO BITCOIN
HAS RELEASED
1423
01:06:19,709 --> 01:06:23,680
THEIR COMMUNICATIONS
WITH SATOSHI FROM THIS PERIOD.
1424
01:06:23,713 --> 01:06:25,682
NICK HAS AVOIDED
DOING THAT,
1425
01:06:25,715 --> 01:06:28,552
AND ESSENTIALLY WENT SILENT
IN THOSE CRITICAL MONTHS
1426
01:06:28,585 --> 01:06:30,620
AFTER BITCOIN WAS RELEASED.
1427
01:06:30,654 --> 01:06:33,390
YOU KNOW, WHEN YOU TALK
TO PEOPLE FACE TO FACE,
1428
01:06:33,423 --> 01:06:35,459
AND THEY TELL YOU
THESE THINGS,
1429
01:06:35,492 --> 01:06:39,463
YOU CAN GET A SENSE
IF THEY'RE BEING HONEST.
1430
01:06:39,496 --> 01:06:42,066
IF HAL FINNEY ACTUALLY
HAD A SECRET
1431
01:06:42,099 --> 01:06:44,168
BILLION-DOLLAR CACHE
OF BITCOINS,
1432
01:06:44,201 --> 01:06:47,104
HE WOULDN'T HAVE BEEN ABLE
TO LIE TO ME SO EFFECTIVELY
ABOUT IT.
1433
01:06:47,137 --> 01:06:50,774
IN THE END, THE REASONS
TO BELIEVE THAT THIS WAS
ALL JUST A COINCIDENCE
1434
01:06:50,807 --> 01:06:54,478
BEGAN TO OUTWEIGH
THE COINCIDENCE ITSELF.
1435
01:06:54,511 --> 01:06:55,745
IT'S ALMOST LIKE AN EEL.
1436
01:06:55,779 --> 01:06:58,082
THERE'S SOMETHING THERE,
YOU CAN SEE IT,
1437
01:06:58,115 --> 01:07:00,350
BUT AS SOON AS YOU TOUCH IT
IT JUST SLIDES RIGHT OUT
OF YOUR HANDS
1438
01:07:00,384 --> 01:07:01,718
AND YOU'RE LEFT
WITH NOTHING.
1439
01:07:02,852 --> 01:07:04,754
ANYBODY WHO IS
OF ANY NOTE
1440
01:07:04,788 --> 01:07:06,156
IN THE CYPHERPUNK
MOVEMENT,
1441
01:07:06,190 --> 01:07:07,191
AND EVEN OUTSIDE
OF IT TOO,
1442
01:07:07,224 --> 01:07:09,093
HAS AT ONE TIME
OR ANOTHER
1443
01:07:09,126 --> 01:07:10,494
BEEN CALLED SATOSHI.
1444
01:07:10,527 --> 01:07:12,562
HAL FINNEY DENIED IT.
NICK SZABO DENIED IT.
1445
01:07:12,596 --> 01:07:13,830
THEY'VE ALL DENIED IT.
1446
01:07:13,863 --> 01:07:15,832
MAYBE ONE OF THEM
IS SATOSHI.
1447
01:07:15,865 --> 01:07:17,634
MAYBE ALL OF THEM
ARE SATOSHI.
1448
01:07:17,667 --> 01:07:19,669
IT REALLY IS A MYSTERY.
1449
01:07:55,372 --> 01:07:57,741
THAT'S THE ORIGINAL TICKER
1450
01:07:57,774 --> 01:08:00,410
FROM NEXT DOOR.
1451
01:08:00,444 --> 01:08:02,546
ALL RIGHT,
SO WE'RE OVER HERE.
1452
01:08:02,579 --> 01:08:06,316
BITCOIN CENTER, 100 FEET FROM
THE STOCK EXCHANGE, OVER HERE.
1453
01:08:06,350 --> 01:08:09,153
AND, UH...
1454
01:08:09,186 --> 01:08:11,188
YOU KNOW, SOME OF YOU GUYS
TOOK A HIT LAST WEEK,
1455
01:08:11,221 --> 01:08:14,658
LAST COUPLE OF WEEKS.
1456
01:08:14,691 --> 01:08:16,226
LOT OF THE BIG GUYS,
1457
01:08:16,260 --> 01:08:20,564
THEY GOT THEIR FOOTHOLD
IN THE BUSINESS
1458
01:08:20,597 --> 01:08:24,134
THAT THEY WEREN'T A PART OF
IN THE BEGINNING.
1459
01:08:26,636 --> 01:08:28,305
I DON'T KNOW
WHAT'S GOING ON.
1460
01:08:28,338 --> 01:08:30,374
BUT, UH, I DON'T KNOW.
1461
01:08:30,407 --> 01:08:32,176
I WOULDN'T WRITE OFF
BITCOIN THAT EASY.
1462
01:08:32,209 --> 01:08:34,544
I KNOW THAT BITCOIN
IS GONNA CHANGE THE WORLD.
1463
01:08:34,578 --> 01:08:36,446
IT'S CHANGING
THE WORLD ALREADY.
1464
01:08:36,480 --> 01:08:39,649
AND WE HAVE
TO STAND TALL
1465
01:08:39,683 --> 01:08:42,919
AND PROUD
1466
01:08:42,952 --> 01:08:45,789
AS BITCOINERS
AND EARLY ADOPTERS.
1467
01:08:45,822 --> 01:08:48,225
THEY DON'T KNOW ANYTHING
ABOUT NEW TECHNOLOGY,
1468
01:08:48,258 --> 01:08:52,396
BUT ONCE
IT STARTS MAKING SENSE,
1469
01:08:52,429 --> 01:08:53,797
THEY THROW THEIR DOLLARS
BEHIND IT.
1470
01:09:00,937 --> 01:09:03,240
[WINTER]
YOU KNOW, UNFORTUNATELY,
1471
01:09:06,343 --> 01:09:09,679
EARLY ADOPTERS
1472
01:09:09,713 --> 01:09:13,683
MAKE THE ROADS
THAT WE ALL TRAVEL DOWN,
1473
01:09:13,717 --> 01:09:17,287
AND THEY ARE USUALLY PAVED OVER
IN THE PROCESS.
1474
01:09:17,321 --> 01:09:20,257
THE FIRST GUY
THROUGH THE DOOR GETS SHOT.
1475
01:09:20,290 --> 01:09:22,292
YOU KNOW, BUT SOMEBODY'S
GOTTA GO THROUGH THE DOOR,
1476
01:09:22,326 --> 01:09:24,594
BUT THEY'RE GONNA GET SHOT.
1477
01:09:24,628 --> 01:09:26,830
CHARLIE SHREM,
ROSS ALBRICHT,
1478
01:09:26,863 --> 01:09:28,532
JULIAN ASSANGE,
1479
01:09:28,565 --> 01:09:31,468
THEY GOT SHOT
COMING THROUGH THE DOOR.
1480
01:09:31,501 --> 01:09:35,905
BUT WE'RE ALL UTILIZING
THE FREEDOMS
1481
01:09:35,939 --> 01:09:38,408
AND TECHNOLOGIES
AFFORDED TO US
1482
01:09:38,442 --> 01:09:39,843
BECAUSE THEY KNOCKED
THE DOOR DOWN.
1483
01:09:41,911 --> 01:09:43,547
[ELIZABETH]
HEY, MICHAEL.
1484
01:09:43,580 --> 01:09:45,715
CAN I PUT YOU
ON SPEAKERPHONE
FOR A MINUTE?
1485
01:09:45,749 --> 01:09:48,352
IF I KNOW HOW.
1486
01:09:48,385 --> 01:09:51,755
HEY, MICHAEL, CAN I ASK YOU,
WHERE DID YOU BUY BITCOINS?
1487
01:09:53,523 --> 01:09:54,658
YEAH.
1488
01:09:58,295 --> 01:10:00,497
DID YOU LOSE-- HOW MUCH--
DO YOU STILL HAVE THEM?
1489
01:10:05,402 --> 01:10:06,436
YOU PUT INTO IT.
1490
01:10:06,470 --> 01:10:08,305
CAN YOU USE IT?
1491
01:10:08,338 --> 01:10:11,508
DO I WANT TO BUY IT?
NO, NOT TODAY.
1492
01:10:11,541 --> 01:10:13,677
THOUGH IT IS GOING
TO BE AROUND.
1493
01:10:16,646 --> 01:10:19,549
DID YOU EVER USE IT
TO BUY ANYTHING?
1494
01:10:22,652 --> 01:10:25,221
-MICHAEL.
-[LAUGHTER]
1495
01:10:27,824 --> 01:10:28,958
NO, OKAY.
1496
01:10:28,992 --> 01:10:31,828
THEY SHOULD GO BACK TO,
YOU KNOW,
1497
01:10:31,861 --> 01:10:33,963
DAY ONE AND
JUST START ALL OVER.
1498
01:10:33,997 --> 01:10:36,733
FORGET ABOUT BITCOIN,
CALL IT SOMETHING ELSE.
1499
01:10:36,766 --> 01:10:39,436
I THINK IT'S BEEN
SO TARNISHED NOW
1500
01:10:39,469 --> 01:10:42,439
WITH THIS--
WITH THE SILK ROAD...
1501
01:10:44,808 --> 01:10:47,477
YOU KNOW, I JUST THINK,
YOU KNOW,
1502
01:10:47,511 --> 01:10:51,047
THAT ALL THAT STUFF ABOUT
$400 MILLION DISAPPEARING
1503
01:10:51,080 --> 01:10:55,285
AND... YOU'RE JUST NOT
GONNA GET OFF THE GROUND.
1504
01:10:55,319 --> 01:10:56,753
NOBODY'S GONNA--
1505
01:10:56,786 --> 01:10:57,887
YOU KNOW,
LIKE WARREN BUFFET SAID,
1506
01:10:57,921 --> 01:10:59,389
"STAY THE HELL AWAY FROM IT."
1507
01:11:03,427 --> 01:11:05,295
[LAWSKY]
TO PUT ALL THE CARDS
ON THE TABLE,
1508
01:11:05,329 --> 01:11:07,697
I'M GONNA BE
LEAVING THE DEPARTMENT
IN THE COMING WEEKS.
1509
01:11:07,731 --> 01:11:12,336
AND IF YOU ASKED ME
BACK WHEN I TOOK THIS JOB
IN 2011
1510
01:11:12,369 --> 01:11:16,606
WHAT I THOUGHT
WE'D BE WORKING ON
DURING MY TENURE,
1511
01:11:16,640 --> 01:11:19,843
DIGITAL CURRENCIES
WOULD NOT HAVE BEEN
AT THE TOP OF THE LIST.
1512
01:11:26,783 --> 01:11:28,752
[VOORHEES]
SO BEN LAWSKY CREATED
THIS THING CALL THE BITLICENSE
1513
01:11:28,785 --> 01:11:32,656
WHICH IS NEW YORK'S
ATTEMPT TO REGULATE
1514
01:11:32,689 --> 01:11:35,592
THIS SCARY NEW TECHNOLOGY.
IT'S NOW LAW.
1515
01:11:35,625 --> 01:11:39,095
AND HE HAS ANNOUNCED
THAT HE IS LEAVING GOVERNMENT
1516
01:11:39,128 --> 01:11:42,699
IN ORDER TO SET UP HIS OWN
PRIVATE CONSULTING FIRM
1517
01:11:42,732 --> 01:11:46,636
TO HELP COMPANIES NAVIGATE
FINANCIAL REGULATIONS
1518
01:11:46,670 --> 01:11:48,938
SUCH AS THE BITLICENSE
THAT HE CREATED.
1519
01:11:48,972 --> 01:11:52,642
SO WE ESSENTIALLY HAD THIS
BEAUTIFUL NEW ECOSYSTEM
BEING BUILT,
1520
01:11:52,676 --> 01:11:55,345
AND BEN LAWSKY COMES BY,
1521
01:11:55,379 --> 01:11:56,646
SAYS, "I'M HERE
TO PROTECT CONSUMERS."
1522
01:11:56,680 --> 01:11:58,014
HE BUILDS A HUGE
WALL AROUND THE THING,
1523
01:11:58,047 --> 01:11:59,115
AND THEN HE SITS
OUTSIDE THE GATE
1524
01:11:59,148 --> 01:12:01,117
CHARGING PEOPLE
TO GET IN.
1525
01:12:01,150 --> 01:12:03,753
THIS IS THE VERY DEFINITION
OF CRONY CAPITALISM,
1526
01:12:03,787 --> 01:12:06,356
AND, FOR SOME REASON,
1527
01:12:06,390 --> 01:12:08,024
BEN LAWSKY DOESN'T EVEN SEE
ANYTHING WRONG WITH THAT.
1528
01:12:10,026 --> 01:12:11,761
I THINK HISTORY
WILL NOT JUDGE HIM
1529
01:12:11,795 --> 01:12:13,863
AS FAVORABLY AS HE THINKS.
1530
01:12:16,165 --> 01:12:17,667
SO, UM, YEAH.
1531
01:12:17,701 --> 01:12:21,037
I'VE STARTED UP
MY OWN CONSULTING BUSINESS.
1532
01:12:21,070 --> 01:12:22,606
IT'S BEEN
QUITE INTERESTING.
1533
01:12:22,639 --> 01:12:24,541
DOING A LOT OF WORK
IN THE FINTECH SPACE,
1534
01:12:24,574 --> 01:12:27,811
BUT ALSO DOING WORK
WITH A LOT OF TRADITIONAL
COMPANIES
1535
01:12:27,844 --> 01:12:30,013
IN THE FINANCIAL SERVICES
WORLD AS WELL.
1536
01:12:30,046 --> 01:12:34,083
[POPPER]
BEN LAWSKY'S TEAM
AT THE DFS
1537
01:12:34,117 --> 01:12:37,387
THAT WAS WORKING ON
THIS BITLICENSE
1538
01:12:37,421 --> 01:12:38,688
AND THE BITCOIN INITIATIVE
1539
01:12:38,722 --> 01:12:41,024
HAVE ALL ENDED UP
LEAVING THE AGENCY
1540
01:12:41,057 --> 01:12:42,792
AND GOING
TO CONSULTING FIRMS
1541
01:12:42,826 --> 01:12:45,895
THAT ARE NOW WORKING
ON THESE ISSUES.
1542
01:12:45,929 --> 01:12:50,700
DANNY ALTER IS GOING
TO WORK FOR ITBIT
1543
01:12:50,734 --> 01:12:52,869
AND DANA SYRACUSE
IS GOING TO WORK FOR
1544
01:12:52,902 --> 01:12:54,638
THE CONSULTING FIRM K2.
1545
01:12:54,671 --> 01:12:56,640
ITBIT IS
PARTICULARLY NOTABLE
1546
01:12:56,673 --> 01:12:59,943
BECAUSE THEY WERE
THE FIRST TO FIND A WAY
1547
01:12:59,976 --> 01:13:03,112
TO PARTNER WITH THE DFS
TO GET LICENSED
1548
01:13:03,146 --> 01:13:05,682
TO OPEN THEIR OWN
BITCOIN EXCHANGE.
1549
01:13:10,219 --> 01:13:11,821
[SHREM]
WHEN THIS IS OVER,
1550
01:13:11,855 --> 01:13:14,491
DEFINITELY GOING TO LEAVE
NEW YORK WHEN I CAN.
1551
01:13:14,524 --> 01:13:16,092
WHERE I'M GONNA GO,
I DON'T KNOW.
1552
01:13:16,125 --> 01:13:18,562
I THINK THE BITCOIN COMMUNITY
IN NEW YORK IS DONE WITH.
1553
01:13:18,595 --> 01:13:20,129
NO, IT DOESN'T FOSTER
INNOVATION HERE.
1554
01:13:20,163 --> 01:13:21,765
IT'S TOO DIFFICULT
TO HAVE A BITCOIN COMPANY.
1555
01:13:21,798 --> 01:13:22,999
NO BANKS WILL
OPEN UP ACCOUNTS.
1556
01:13:23,032 --> 01:13:24,934
YOU HAVE THE THREAT
OF REGULATION,
1557
01:13:24,968 --> 01:13:26,069
AND YOUR HIGH-PROFILE
ARRESTS
1558
01:13:26,102 --> 01:13:27,170
LIKE MYSELF AND OTHERS.
1559
01:13:27,203 --> 01:13:29,973
NO ONE WANTS
TO DEAL WITH IT.
1560
01:13:30,006 --> 01:13:31,941
WHEN DID YOU FIRST
START DIGGING IN ON BITCOIN?
1561
01:13:31,975 --> 01:13:33,777
TWO, TWO AND HALF
YEARS AGO,
1562
01:13:33,810 --> 01:13:35,779
WHEN I TOOK OVER
THE FOREIGN EXCHANGE
PAYMENTS BUSINESS
1563
01:13:35,812 --> 01:13:38,014
- AT JP MORGAN.
- SO YOU PROBABLY
HAD YOUR MT. GOX,
1564
01:13:38,047 --> 01:13:40,650
BITINSTANT, YOU KNOW,
CHARLIE AND THOSE GUYS.
1565
01:13:40,684 --> 01:13:43,553
IT'S INTERESTING,
ALMOST NONE OF THOSE GUYS
ARE AROUND ANYMORE.
1566
01:13:43,587 --> 01:13:45,221
TWO YEARS AGO
AT ALL THE MAJOR BANKS,
1567
01:13:45,254 --> 01:13:46,490
BITCOIN WAS
AN AFTERTHOUGHT.
1568
01:13:46,523 --> 01:13:48,858
IT WAS KIND OF A--
MAYBE IN A HALLWAY
KIND OF CONVERSATION
1569
01:13:48,892 --> 01:13:50,727
AT THE WATER COOLER
AND NOW,
1570
01:13:50,760 --> 01:13:53,029
YOU KNOW, EVEN THIS WEEK,
I MET WITH ONE OF THE OTHER
MAJOR BANKS.
1571
01:13:53,062 --> 01:13:57,100
EVERYONE'S GOT
A BITCOIN SPECIALIST,
AT LEAST ONE WORKING GROUP.
1572
01:13:57,133 --> 01:13:59,102
KIND OF TEAMS OF PEOPLE
WHO ARE TRYING TO FIGURE OUT
1573
01:13:59,135 --> 01:14:01,638
HOW TO INCORPORATE
THE TECHNOLOGY
1574
01:14:01,671 --> 01:14:04,774
INTO THEIR
EXISTING OPERATION.
1575
01:14:04,808 --> 01:14:06,610
[CASEY]
BANKS AND INSTITUTIONS
1576
01:14:06,643 --> 01:14:08,177
ASSOCIATED WITH
THE FINANCIAL SYSTEM
1577
01:14:08,211 --> 01:14:10,614
ARE REALLY STARTING
TO RECOGNIZE
1578
01:14:10,647 --> 01:14:13,249
THAT THE PAYMENT SYSTEM
UNDERLYING BANKING
1579
01:14:13,282 --> 01:14:14,884
COULD BE MADE
MORE EFFICIENT
1580
01:14:14,918 --> 01:14:17,621
BY THE APPLICATION
OF BLOCKCHAIN TECHNOLOGIES.
1581
01:14:18,822 --> 01:14:20,924
[LAWSKY]
THE BLOCKCHAIN TECHNOLOGY
1582
01:14:20,957 --> 01:14:22,792
UNDERLYING BITCOIN
1583
01:14:22,826 --> 01:14:24,728
HAS BECOME SOMETHING THAT
1584
01:14:24,761 --> 01:14:27,631
A LOT PEOPLE ARE NOW
VERY, VERY INTERESTED IN
1585
01:14:27,664 --> 01:14:29,666
FOR ALL KINDS OF
OTHER USES,
1586
01:14:29,699 --> 01:14:33,169
WHETHER IT'S ALLOWING
FOR DERIVATIVES
TO BE TRANSFERRED
1587
01:14:33,202 --> 01:14:35,004
OR SECURITIES
TO BE TRANSFERRED,
1588
01:14:35,038 --> 01:14:38,908
OR ALL MANNER OF FINANCIAL
INSTRUMENTS TO BE TRANSFERRED
1589
01:14:38,942 --> 01:14:40,209
IN COMPLEX,
INTERESTING WAYS.
1590
01:14:40,243 --> 01:14:41,811
I THINK DIFFERENT COMPANIES
1591
01:14:41,845 --> 01:14:43,847
ARE GOING TO ADOPT
DIFFERENT STRATEGIES.
1592
01:14:43,880 --> 01:14:46,015
AND IT'S GONNA BE
FASCINATING TO WATCH
1593
01:14:46,049 --> 01:14:48,017
COMPANIES LIKE
DIGITAL ASSET HOLDINGS,
1594
01:14:48,051 --> 01:14:49,519
BLYTHE MASTERS' COMPANY,
1595
01:14:49,553 --> 01:14:52,956
DOING VERY,
VERY INTERESTING WORK.
1596
01:14:55,324 --> 01:14:57,627
[BLYTHE MASTERS]
I DIDN'T BECOME
AWARE OF BITCOIN
1597
01:14:57,661 --> 01:15:01,765
IN ANY MEANINGFUL SENSE
UNTIL 2014,
1598
01:15:01,798 --> 01:15:04,167
LATE IN THE YEAR,
AND AT THE TIME,
1599
01:15:04,200 --> 01:15:08,672
MY PERSPECTIVE WAS ONE
OF SKEPTICISM, I WOULD SAY.
1600
01:15:08,705 --> 01:15:12,241
SPECIFICALLY BECAUSE
THE STORYLINE THAT I HEARD
1601
01:15:12,275 --> 01:15:15,579
RELATED VERY MUCH
TO CRYPTOCURRENCY
1602
01:15:15,612 --> 01:15:18,682
AS A POTENTIAL MEDIUM
OF EXCHANGE AND STORE OF VALUE,
1603
01:15:18,715 --> 01:15:22,051
WHICH IS A VALID DEBATE
AND APPLICATION,
1604
01:15:22,085 --> 01:15:26,255
BUT IT DOESN'T HAVE
FULL EXTENT OF THE POWER
1605
01:15:26,289 --> 01:15:29,993
THAT THE UNDERLYING TECHNOLOGY
HAS TO ACHIEVE.
1606
01:15:31,227 --> 01:15:34,297
BLYTHE MASTERS
IS NOT JUST ANY BANKER.
1607
01:15:34,330 --> 01:15:38,735
SHE IS THIS PERSON
WHO I THINK IS REALLY SEEN
1608
01:15:38,768 --> 01:15:42,305
AS BEING BEHIND
SOME OF THE MOST
PROBLEMATIC INNOVATIONS
1609
01:15:42,338 --> 01:15:45,909
IN THE FINANCIAL INDUSTRY
OVER THE LAST THREE DECADES.
1610
01:15:45,942 --> 01:15:48,344
BLYTHE IS THE ONE WHO'S
ESSENTIALLY GIVEN CREDIT
1611
01:15:48,377 --> 01:15:51,214
FOR CREATING
THE CREDIT DEFAULT SWAP
1612
01:15:51,247 --> 01:15:56,019
WHICH ESSENTIALLY
PROVIDES A WAY TO BET
ON THE DEFAULT OF A BOND,
1613
01:15:56,052 --> 01:15:59,923
AND THE CREDIT DEFAULT SWAP
ENDED UP TAKING THIS PLACE
1614
01:15:59,956 --> 01:16:02,125
AT THE CENTER
OF THE FINANCIAL CRISIS
1615
01:16:02,158 --> 01:16:04,594
AND THESE BETS
THAT BANKS HAD MADE
1616
01:16:04,628 --> 01:16:07,030
AGAINST SUB-PRIME
MORTGAGES.
1617
01:16:08,364 --> 01:16:11,134
BLOCKCHAIN TECHNOLOGY
ERADICATES
1618
01:16:11,167 --> 01:16:13,870
A SIGNIFICANT AMOUNT
OF INEFFICIENCY IN THE SYSTEM,
1619
01:16:13,903 --> 01:16:15,805
AND REDUCES COSTS.
1620
01:16:15,839 --> 01:16:18,307
IT DOESN'T MEAN
THAT WE ARE DOING AWAY
1621
01:16:18,341 --> 01:16:21,678
WITH THE NEED FOR TRUST
IN FINANCIAL SERVICES AT ALL.
1622
01:16:23,112 --> 01:16:26,015
[POPPER]
BITCOIN WAS DESIGNED
TO FIND A WAY
1623
01:16:26,049 --> 01:16:27,751
TO CIRCUMVENT WALL STREET,
1624
01:16:27,784 --> 01:16:30,053
AND WHAT BLYTHE MASTERS
IS DOING
1625
01:16:30,086 --> 01:16:32,255
IS ESSENTIALLY
TRYING TO FIND WAYS
1626
01:16:32,288 --> 01:16:35,625
TO BRING WALL STREET
INTO BITCOIN
1627
01:16:35,659 --> 01:16:38,928
AND MAKE IT POSSIBLE FOR THEM
TO USE THIS TECHNOLOGY
AS WELL.
1628
01:16:38,962 --> 01:16:41,965
WHAT THE BANKERS SEEM TO BE
LOOKING TO DO AT THIS POINT
1629
01:16:41,998 --> 01:16:45,735
IS CREATE THEIR OWN
PRIVATE BLOCKCHAIN,
1630
01:16:45,769 --> 01:16:48,104
WHERE THEIR COMPUTERS
ARE POWERING IT.
1631
01:16:48,137 --> 01:16:50,774
RATHER THAN
THESE ANONYMOUS MINERS,
1632
01:16:50,807 --> 01:16:53,342
THEY WANT CONTROL
OVER THE SYSTEM.
1633
01:16:53,376 --> 01:16:58,414
THE BANKS ARE LOOKING
AT THIS INCREDIBLY WIDE ARRAY
1634
01:16:58,447 --> 01:17:01,084
OF WAYS THAT
THEY MIGHT USE THIS,
1635
01:17:01,117 --> 01:17:04,654
WHICH INCLUDE REPLACING
STOCK EXCHANGES,
1636
01:17:04,688 --> 01:17:08,057
FINDING NEW WAYS
TO ORIGINATE LOANS,
1637
01:17:08,091 --> 01:17:12,428
FINDING NEW WAYS TO MOVE MONEY
BETWEEN COUNTRIES,
1638
01:17:12,461 --> 01:17:14,063
AND, OF COURSE,
THAT'S GOING BACK
1639
01:17:14,097 --> 01:17:17,100
TO THE ORIGINAL IDEA
OF BITCOIN,
1640
01:17:17,133 --> 01:17:20,670
BUT NOW IT'S HAPPENING WITHIN
THESE FINANCIAL INSTITUTIONS
1641
01:17:20,704 --> 01:17:24,040
RATHER THAN OUTSIDE IT,
AS BITCOIN HAD IMAGINED.
1642
01:17:25,842 --> 01:17:28,011
[VOORHEES]
I HAVE NO PROBLEM
WITH THE BANKING SYSTEM
1643
01:17:28,044 --> 01:17:29,946
AND THE FINANCIAL INDUSTRY
CO-OPTING BITCOIN,
1644
01:17:29,979 --> 01:17:33,049
PRIMARILY BECAUSE BITCOIN
CAN'T REALLY BE CO-OPTED.
1645
01:17:33,082 --> 01:17:34,283
THE FACT
THAT IT'S DECENTRALIZED
1646
01:17:34,317 --> 01:17:35,985
MEANS NO ONE
CAN CONTROL IT,
1647
01:17:36,019 --> 01:17:39,756
NO MATTER WHO THEY ARE
OR HOW MUCH MONEY THEY HAVE.
1648
01:17:39,789 --> 01:17:41,224
[ANDRESEN]
I THINK IT'S
ALL GOOD FOR BITCOIN.
1649
01:17:41,257 --> 01:17:42,792
I THINK ALL OF THE INNOVATION
THAT'S HAPPENING,
1650
01:17:42,826 --> 01:17:45,061
BOTH ON WALL STREET
AND IN SILICON VALLEY
1651
01:17:45,094 --> 01:17:47,063
I THINK COMPETITION
WILL TAKE CARE OF
1652
01:17:47,096 --> 01:17:49,032
PEOPLE WHO WANT TO TRY
TO HAVE A MONOPOLY,
1653
01:17:49,065 --> 01:17:53,036
OR WHO WANT TO TRY TO CHARGE
MORE THAN THEY SHOULD
1654
01:17:53,069 --> 01:17:54,303
FOR WHATEVER
PRODUCT OR SERVICE
1655
01:17:54,337 --> 01:17:56,172
THAT IS HAPPENING
ON THE BLOCKCHAIN.
1656
01:17:56,205 --> 01:17:58,007
IT REALLY IS
AS ADVERTISED.
1657
01:17:58,041 --> 01:18:00,877
IT REALLY IS CONTROLLED BY ALL
THE PEOPLE WHO ARE USING IT,
1658
01:18:00,910 --> 01:18:04,781
AND IT REALLY IS DESIGNED
JUST TO BE A MORE EFFICIENT,
1659
01:18:04,814 --> 01:18:08,317
MORE FAIR WAY OF SENDING
VALUE OVER THE INTERNET.
1660
01:18:10,019 --> 01:18:12,088
[WINTER]
BITCOIN IS NOT NEUTRAL.
1661
01:18:12,121 --> 01:18:16,092
YOU CANNOT REMOVE
THE POLITICAL COMPONENT
1662
01:18:16,125 --> 01:18:19,062
THAT SATOSHI IMPLANTED
IN BITCOIN FROM BITCOIN.
1663
01:18:19,095 --> 01:18:20,429
THAT'S WHAT
A LOT OF THE PEOPLE
1664
01:18:20,463 --> 01:18:22,331
ON THE WALL STREET SIDE
TRY TO DO.
1665
01:18:22,365 --> 01:18:25,368
YOU CANNOT NEUTRALIZE
BITCOIN.
1666
01:18:25,401 --> 01:18:26,702
IT'S IMPOSSIBLE.
1667
01:18:30,206 --> 01:18:33,176
[SHREM]
THANKFULLY, I'M GONNA GO TO
A COMFY FEDERAL PRISON CAMP
1668
01:18:33,209 --> 01:18:35,879
WITHOUT FENCES, THAT HAS
POOL TABLES AND A TRACK,
1669
01:18:35,912 --> 01:18:38,514
AND BASEBALL FIELD
AND DECENT FOOD,
1670
01:18:38,547 --> 01:18:42,852
AND KIND OF
100 TO 200 PEOPLE
THAT ARE WHITE COLLAR.
1671
01:18:42,886 --> 01:18:46,856
THOSE GUYS IN PRISON
ARE THE BEST ONES
TO USE BITCOIN.
1672
01:18:46,890 --> 01:18:48,792
THEY'RE SMART.
I'M VERY EXCITED
1673
01:18:48,825 --> 01:18:50,193
TO TALK TO THEM ABOUT IT.
1674
01:19:09,846 --> 01:19:12,849
[VIGNA]
SO YES, THE VCS ARE
DRIVING THIS THING RIGHT NOW.
1675
01:19:12,882 --> 01:19:14,217
THEY'RE POURING
MONEY INTO IT.
1676
01:19:14,250 --> 01:19:16,820
THEY'RE BUILDING THESE
FOR-PROFIT COMPANIES
1677
01:19:16,853 --> 01:19:19,522
PEOPLE WHO HAVE A BACKGROUND
OUTSIDE OF BITCOIN
1678
01:19:19,555 --> 01:19:21,991
SEEING THE VALUE OF IT
AND COMING TO IT.
1679
01:19:22,025 --> 01:19:25,528
BUT JUST BECAUSE THEY'RE DOING
EVERYTHING THEY'RE DOING
1680
01:19:25,561 --> 01:19:28,397
DOESN'T MEAN
THAT THE LIBERTARIANS
AND THE UTOPIANS
1681
01:19:28,431 --> 01:19:29,899
HAVE TO GO AWAY.
1682
01:19:29,933 --> 01:19:31,200
BITCOIN IS OPEN SOURCE.
1683
01:19:31,234 --> 01:19:32,836
YOU CAN DO WHATEVER
YOU WANT WITH IT.
1684
01:19:32,869 --> 01:19:34,070
SO THEY'RE STILL THERE.
1685
01:19:34,103 --> 01:19:35,404
THEY'RE STILL BUILDING
THEIR PRODUCTS.
1686
01:19:35,438 --> 01:19:36,940
THEY'RE STILL BUILDING
THEIR VISION.
1687
01:19:36,973 --> 01:19:38,875
AND IF BITCOIN
GOES MAINSTREAM
1688
01:19:38,908 --> 01:19:40,176
AND IF IT GETS PICKED UP,
1689
01:19:40,209 --> 01:19:41,945
EVEN IF IT'S RUNNING
IN THE BACKGROUND,
1690
01:19:41,978 --> 01:19:44,213
THERE ARE GOING
TO BE ELEMENTS OF THAT
1691
01:19:44,247 --> 01:19:46,549
AND THAT'S KIND OF WHAT
UTOPIA MOVEMENTS ALWAYS ARE.
1692
01:19:46,582 --> 01:19:49,552
THE THING THAT THE UTOPIANS
WERE DREAMING ABOUT
1693
01:19:49,585 --> 01:19:51,955
IS NOT GONNA HAPPEN
THE WAY THEY EXPECTED IT,
1694
01:19:51,988 --> 01:19:54,190
BUT I DO THINK IT
IS GOING TO FILTER THROUGH
1695
01:19:54,223 --> 01:19:56,893
AND YOU ARE GONNA SEE IT.
YOU'RE GONNA SEE IT.
1696
01:20:06,202 --> 01:20:10,073
SO YOU'RE GONNA SHOW ME
THAT SATOSHI NAKAMOTO IS YOU.
1697
01:20:11,374 --> 01:20:13,843
YES.
1698
01:20:13,877 --> 01:20:16,345
SOME PEOPLE WILL BELIEVE,
SOME PEOPLE WON'T.
1699
01:20:16,379 --> 01:20:19,883
AND TO TELL YOU THE TRUTH,
I DON'T REALLY CARE.
1700
01:20:19,916 --> 01:20:22,418
BUT YOU CAN SAY,
HAND ON HEART TO ME,
1701
01:20:22,451 --> 01:20:25,121
"I AM SATOSHI NAKAMOTO."
1702
01:20:25,154 --> 01:20:28,157
I WAS THE MAIN PART OF IT.
OTHER PEOPLE HELPED ME.
1703
01:20:28,191 --> 01:20:32,395
I'M GOING TO COME IN FRONT
OF THAT CAMERA ONCE,
1704
01:20:32,428 --> 01:20:34,630
AND I WILL NEVER
1705
01:20:34,663 --> 01:20:36,900
EVER BE ON A CAMERA
EVER AGAIN
1706
01:20:36,933 --> 01:20:39,002
FOR ANY TV STATION
1707
01:20:39,035 --> 01:20:41,470
OR ANY MEDIA EVER.
1708
01:20:45,674 --> 01:20:49,212
[MUSIC PLAYING]
1709
01:21:29,352 --> 01:21:32,355
[MUSIC CHANGES]
131630
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