Magic Money - The Bitcoin Revolution | Crypto Explained

[Music] so here I have two devices and I will transfer $1 from this device to this device instantaneously ENT the amount and send I'm seeing the transaction [Music] now and there it is what you've just witnessed is what looks like a standard financial transaction money was transferred electronically from one account to another but while it appears like an ordinary bank transfer it may perhaps be the most revolutionary technology you're likely to see in your lifetime this technology is called Bitcoin money makes possible the exchange of many different goods and services among many different people wherever

we go we see money being used as a medium of exchange money is at the core of our existence every day we transact with one another currently almost all of our daily transactions involve a third party a bank credit card company or remittance provider and ultimately it's these institutions that carry out the transaction on our behalf this is until the invention of Bitcoin Bitcoin is truly one of the most important inventions ever in the history of humankind that's how big of an impact it's going to have on our lives and it sounds really difficult and

complicated and hard to understand hearing about it if you had only heard about email it would sound difficult and comp licated and hard use Bitcoin is literally easier to use than email so what exactly is Bitcoin well for starters Bitcoin isn't actually a coin Bitcoin is a new form of money a currency that lives solely on the internet one that some have even called Magic internet money I think part of the confusion is that Bitcoin is actually two different things it's both a currency and a payment Network and we've never had one thing that's both

of those at the same time so the dollar is a currency but it's not a payment Network PayPal and Visa are payment networks but they're not currencies Bitcoin is both of those things at the same time but it has this other property and that other property is that it can instantly be teleported anywhere in the world just like that almost for free and there's 's nothing that anybody can do to block these teleportations there's nothing anybody can do to intercept these teleportations and if you're careful about how you use Bitcoin you can do these teleportations

anonymously so with Bitcoin with a push of a button you can pay anyone anywhere in the world or receive payment from anyone anywhere in the world in the aftermath of the global financial crisis an author using the pseudonym Satoshi Nakamoto posted a 9-page document onto an online form Forum the document titled Bitcoin a peer-to-peer electronic cash system would soon become the building block for what is today the first fully working concept of decentralized money these are the daily candles of Bitcoin just in the backdrop but I want to talk about these uh trend lines you've

seen them on other presentations even earlier today I started out working at be Sterns back in 2007 so about a year and a half or so before the financial crisis really started to hit and after Bear Sterns I joined JP Morgan where I became a VP and that was my last job all of these jobs were either Midtown or downtown Manhattan tone vay is a Wall Street veteran a former VP at JP Morgan he now spends his time studying and educating audiences about Bitcoin Bitcoin is generally difficult to explain uh you want to try and

break it down as simple as you can so the simplest way is is basically it's a it's like a message it's a digital message that you're passing and normally we're all used to computers we're all sending emails we're all sending pictures but you're always sending a copy anytime you hit the send button in a computer you always retain a copy you always retain the original and when it comes to financial transactions you hit the send button and you have an intermediate the bank that is moving money from one account to another and this is the

problem that Bitcoin solved it was able to take something digital and when you hit the send button you're not actually sending a copy you're actually sending um a digital object at its core Bitcoin is basically a new monetary system however Bitcoin is unlike any other system we've seen in the past because it isn't centralized in one place this decentralized nature of the Bitcoin platform is one of the things that make it so unique and world changing we're all familiar with PayPal or Visa or Bank of whatever all of these traditional services that we're used to

control who's allowed to have an account who can send money from who from what country's users can send money to other Count's users with Bitcoin there is no entity that's controlling any of that there's just this software protocol that anyone can write software to interact with and then anyone can install that software on their phone or on their computer and once they have the software installed they can now interact with anyone else anywhere in the entire world that's also using the Bitcoin software this software that runs the Bitcoin protocol is commonly called a wallet a

digital purse which stores and allows the holder to move Bitcoins from one wallet to another the Bitcoin protocol is open source meaning that the programming code is freely available to add to and redistribute in this way similar to anyone being able to add a new website to the worldwide web programmers are able to add new products to the Bitcoin network uh we have Jason for this is very late evening because he is in Australia uh and we're about to do Jason's first Bitcoin transaction over Skype as our medium so everyone can see how quick and

easy it is on my end I will hit uh send and uh Jason is going to hit request so when he hits request a QR code should have displayed in the middle of your screen and he's going to put it up to the camera of Skype so I can can scan it with the camera in my cell phone all right I see the QR code my phone is trying to scan it and there it is I scanned it so I feel kind of generous let's send Jason $5 so I have just sent Jason $5 in

Bitcoin uh and let me know when it's registering on your end that you have $5 worth of bitcoin and there it is okay so that took about 10 to 15 seconds Bitcoin enables users to send and receive money instantly without the involvement of a third party this digital breakthrough allows the user to effectively become their own bank this is a complex idea to handle but the possibility of this new bankless currency are enormous with the exception of actually handing physical cash to you generally we have to rely on third parties for lots of different payments

be credit cards or wire transfers internationally or even sort of keeping cash under your bed storing large amounts of cash we use Banks and what Bitcoin does is allow us to do all of those things without any third part ities so in that sense we can be our own bank we can be our own payment system we can be our own International wire system we can be our own remittance system we can do all of these things without relying on any other third parties that's what Bitcoin allows us to [Music] do before Bitcoin all these

companies like PayPal and visa and Bank of America and you know any business they had a ledger that kept track of all their account balances so PayPal has a ledger that keeps track of exactly who has how much money in each PayPal account and that ledger is stored on PayPal servers in PayPal's data center somewhere and before the invention of Bitcoin people thought that it was impossible all the mathematicians and computer scientists thought that it was impossible to have consensus on a distributed Ledger like this but what Bitcoin did is it came along and figured

out how to keep track of this Ledger that keeps track of who has what Bitcoins but instead of that ledger being on one data center it's on everybody's computer across the entire planet that's running the Bitcoin Network including my laptop right here I have a full copy of the entire Bitcoin uh Ledger this public Ledger known as the blockchain is perhaps what could make Bitcoin a financial game Cher Bitcoin is what is known as a cryptocurrency meaning that it's a digital currency in which encryption is used to regulate the creation of new units and verify

the transfer of funds new Bitcoins come into existence through a process called mining a miner is a person or entity who runs a very powerful computer in an effort to solve a complex mathematical puzzle known as a block miners around the world compete to solve or close a block and are rewarded with newly generated Bitcoins if they're successful all transactions that travel through the Bitcoin Network are pieces of this complex mathematical puzzle so when a minor solves a puzzle they're actually verifying the Integrity of each and every transaction welcome this is one giant abandoned recycling

plant we've got incinerators over there those two big silos right around this wall we have a me megawatt worth of solar panels it's a lot um that's about as much as what we consume so we're going to be able to offset our electrical costs completely this is uh work in progress but a Bitcoin mine is a group of computers that contribute its processing power to facilitating Bitcoin transfers and security of the network yeah it is one big supercomputer and all these individual computers are kind of throwing guesses at this mathematical problem and it's a it's

a very difficult problem it takes lots and lots of computers to guess it uh once that guess is correct that is sent to all the rest of the computers and with that answer they record all the transactions that have been done up to that point it's a very secure system for uh facilitating transfers and Coring transfers and making sure that no kind of shady work has been done because there's there's some methods in in financial transactions where you could double spend and this whole blockchain thing is is one great method of make sure that doesn't

happen say if Alice wants to send Bob and email um what would happen under the the hood is that along the path of the email across the network um her email gets copied in many places of the network and eventually the final copy will be relate to to Bob that's how email works that's how digital transfers work and that's how it should work for for the majority of digital transfers that's that's well and good however in the case of money that would be disastrous if if that were to be the way that money was transferred

digitally um you don't want copies of the same dollar bill to be to exist on the network that that would ruin the scarcity uh uh premise of of of money and so this was the problem that satosi nakoto um tackled with the the creation of Bitcoin um and so what happens with Bitcoin the bitcoin's blockchain is that when Alice wants to send one Bitcoin to Bob she creates a transaction and that transaction gets copied across the entire network however this is different than say a single email because that transaction has embedded in it instructions to

the rest of the network that says from here on out control over this Bitcoin is now conferred to Bob okay and the rest the network Honors that one time I I realized that wow Bitcoin is really difficult for people to understand is I spent the whole evening explaining Bitcoin to a friend of mine and then uh I got home that night and uh she posted on my Facebook page and she goes yeah I was thinking more about Bitcoins and you were explaining Bitcoin mining and does that mean that Bitcoins are originally underground and I realized

that bitcoin's a difficult concept for for people to understand and especially Bitcoin mining as well because Bitcoins are not originally Underground for new users Bitcoin can be a difficult concept to understand Bitcoins aren't physical and they certainly aren't underground however there are some interesting similarities between Bitcoin and a precious metal that is found underground gold gold has been money and a store of value for thousands of years today gold is mind all over the world the amount of gold that can be extracted from the ground decreases over the life of a mine until eventually the

mine is exhausted of all of its gold Bitcoins are also mined in a similar fashion the Bitcoin algorithm is programmed so that the reward for mining new Bitcoins is hared every 4 years until the year 2140 when all Bitcoins were will have been deemed to have been mined perhaps the mysterious Creator behind Bitcoin was trying to mimic the attributes of gold almost as if to create a digital gold coin which could be divided and then sent instantly around the world I try to explain it in some really simple way like uh miners Bitcoin Min miners

they receive the reward just because they maintain security of Bitcoin mathematically it means that uh you need to solve quite difficult problems is a just guessing process you have to make millions and million millions of guesses and if you're right and you're able to close all these transaction inside of one block you are successful and you receive 12.5 Bitcoins as minor originally this reward was 50 Bitcoins every four years uh uh these uh these rort for minors uh is two times um less so re world will be decreasing over the time the creator of Bitcoin

whoever he is was a really really really smart guy and uh he obviously liked math a lot and he sat down and did some calculations and thought to himself if everybody in the entire world were to start using Bitcoin how many Bitcoins would we need in order for that to be able to accommodate everybody using Bitcoin for this and uh each Bitcoin can be divided down to 100 millionth of a Bitcoin and if everybody in the entire world were to start using Bitcoin as their money the smallest unit of a Bitcoin which is called a

Satoshi it's 100 millionth of a Bitcoin would still be worth less than one US penny if the entire world were to start using Bitcoin so who is this Satoshi Nakamoto 2 years after publishing the white paper for the peer-to-peer electronic cach system this mysterious figure vanished never to be heard from again the only Clues to his or her identity can be found in the white paper some speculate he or she is of British origin due to the writings containing some British slang others believe that rather than being one person Satoshi was a group of hackers

working in concert to create a new monetary system which would decentralize money as we know it I think he was a clever guy he was not a normal geek he had good knowledge of uh decentralized technology or uh decentralization he had good know uh Financial system and he was quite good coder but the code of Bitcoin is not definitely the best one so it's definitely possible to to write better Cod there is also conspiration Theory if Bitcoin code uh was written by one guy or many different guys hard to say anyway I especially appre appreciate

that it's first fully working concept of decentralized money it's very interesting like who Satoshi is uh there's lots of speculation especially among like the very early people in Bitcoin uh but what difference does it make whether we know who created bitcoin uh I don't I don't know that it makes any difference there's lots of stuff that we use that we don't know who created it uh and yet it gives us a lot of advantages in our day-to-day activities I have no idea who Satoshi is um we know very little about Satoshi and so he could

be at an event um he could be someone we know he could be someone I've spoken to he could be a friend of mine for all I know I don't know who it is I don't know if we'll ever know but it's it's a fun game am i s toi uh I don't think I'll answer that one regardless of the true identity of Satoshi what he or she has invented could have profound effects on how our world evolves into the future [Music] because Bitcoin enables the user to act as their own bank in essence it

frees the user from the traditional Gatekeepers to their wealth [Music] we all use keys in our daily lives Keys allow us to access and control our valued possessions they also protect our valuables from being stolen take your car as an example holding the keys to your car allows you access to it whenever you wish but suppose you've had a few too many to drink and your loyal friend confiscates your keys from you the car may still be yours but now you no longer control it taxi and must hail a right home the same can be

said of our finances although you may have the debit card and password to your bank account the funds aren't directly in your possession every time you make a withdrawal or transfer from your bank account the bank is actually acting on your behalf and moving the funds for you this is where Bitcoin is fundamentally different Bitcoin enables an individual to hold the private keys of their own wealth so with pretty much every asset that we have out there uh we don't directly hold the Dominion or control over that asset uh for example the Royal Bank of

Scotland they had 700,000 accounts ATMs just went down for the weekend nobody could access the ATMs couldn't get money out uh you have a credit card or a debit card and it gets turned off because of suspected fraud or you did a charge in a unusual location well guess what the credit card company holds those private keys they get to make the choice not you Bitcoin is very very different in this regard it is built on public private key encryption and what that means is that you send Bitcoins to the public key and then in

order to send the Bitcoins you have to be able to sign with the private key where the Bitcoins uh currently reside and that literally is a a number that private key is a number Bitcoin nobody gets to turn it off if you have the private key you get to access it and use it with your Bitcoin wallets they're Associated um what are called private Keys okay and these are literally what they sound like they're private keys that can open and unlock your access to your funds but let's be clear if you lose any of your

private Keys you lose access to your funds simple as [Music] that so we just bought some Bitcoins out of a local Bitcoin ATM and so what actually comes out is uh what we call a cold wallet it's a little piece of paper with two squares on it or two things that look like Ro ink blot tests and a bunch of alpha numerics underneath each now at the top is the public key which is what people would use to send Bitcoins to this address and the bottom one is the private key um which is what you

would use to scan in order to retrieve Bitcoins from this address now it's very important to note that that private key is something that you really shouldn't be showing around everywhere because whoever scans this first will be able to take the Bitcoins off this address also if you were to happen to lose this piece of paper then you've actually essentially lost your Bitcoins because nobody else has a copy of this private key right now there actually is some Bitcoins on this address so if you're seeing this for the first time you may be able to

scan this off yourself and take the Bitcoins for yourself so here is a sator coin uh there is a value of 0.001 Bitcoin inside uh in today's um exchange rate uh that would mean about uh 45 cents so it's very minimal uh amount but it is true Bitcoin inside now how to redeem the value out of this token one would have to peel off the Hologram sticker in the back here we go and then a QR code would be exposed and this QR code is the private key information which is essentially like the password and

with this private key and only with this private key one can redeem you can import that value to your Bitcoin wallet anything that's physical has a very strong sense of Authority or authenticity and to make the barrier to entry to bitcoin as low as possible um I think everyone working on their project felt it was really important that someone could have a part of Bitcoin that they can hold in their hands that's portable and uh doesn't cost very much to get started it's kind of a low commitment object because Bitcoin is built on public private

key encryption the entire workflow for sending payments particularly online is fundamentally different from that of credit cards credit cards were never built to be used on internet in the first place when the credit cards were made uh there was no internet so a poll system is that you've given the authorization to the merchant or the credit card issue to pull from your bank account uh whenever it's it is that they feel that they have the right to do so with a credit card whenever you want to initiate a transaction you are effectively giving the keys

to the merchant right and you give your keys to every Merchant you you deal with um so every time you you make a transaction for example online or so you're taking a risk because you're entrusting the merchant with these this very personal information which they could then take to initiate transactions as well if they wanted to whereas Bitcoin it's a completely different model where the the control uh is more weighted towards the the consumer the consumer then pushes their their funds to you um and then um if you're doing an internet service right you could

broadcast a Bitcoin address and anyone in the world could send Bitcoin to you if you were a band a musical band and you you performing on a concert and your concert was being broadcast uh you know around the world if you put up on the stage a you know uh a sign that had a Bitcoin address well you could be funny by anyone who's watching that broadcast anytime they watched it U from that point [Music] onward my name is sanir fuimo and I play the saxophone and other instruments I compose and perform and make CDs

and I make my living by being a musician today's small live show I did without no uh admission fee and if you appreciate my music then you can tip me by tipping you don't know how much might get zero or if your performance is great you might get more than you think so that makes me play better [Applause] direct uh interaction is more more about the art itself and uh if you tip uh somewh in the street you don't tip big money you tip like 10 cents quarters and small money but uh to send the

small money on the internet cost more than what you supposed to tip so Bitcoin is much better way to tip someone in the internet Bitcoin payments are a push system meaning that the funds are pushed from sender to receiver this makes for a faster and cheaper system than traditional pool systems like credit card transactions this in turn also means that Bitcoin transactions are final and cannot be reversed credit cards actually has about a six month settlement time even though the transaction looks like it went through the person can then call back and say this was

a fraudulent transaction and then the credit card will take that money away from the merchant in some cases in some cases the credit card will eat the cost and that's a charge back now we pay for this this is the 3% fee Merchants usually pay this 3% in order to accept credit cards so Bitcoin transactions don't have chargebacks I think of it as a good thing um as much as people like to say how how great it is to dispute things it very very rarely happens almost never do you order something from a legitimate company

and you were not satisfied and then the company did not solve your problem most of the time this situation happens is when your credit card is actually stolen and your credit card is can always be stolen everyone's credit card is all over the internet is just luck or bad luck if your credit card happens to be used in a for transaction we have some businesses accepting Bitcoin mostly restaurants for example we have some restaurants here set up in Acapulco for merchants when they accept Bitcoin is for them to have another option an Innovative option and

for them they have they have a lot of advantages we don't charge what the credit card fees charge every time they Slide the the card 3 four five even 10% depend of a credit card we don't charge anything we don't have a minimum fee you can pay uh 10 pesos 50 pesos we don't have a minimum with Bitcoin payments lowering the cost of doing business and eliminating the possibility of fraudulent transactions companies ranging from Mom and Pop stores to multinational corporations have started to embrace this new way to transfer value this is harbard medical school

and this is harbard sh I visit here it's 1997 to 1999 for the first large publicly traded company to accept Bitcoin is Overstock and they now ship goods to over 200 countries last I checked Amazon only ships to about 50 60 countries so they're seeding entire markets with entire populations and the billions uh not even fighting for that market share additionally if Amazon accepted Bitcoin there would be no fraud there would be no chargebacks so it would lower their cost it would greatly increase Amazon's profit margins to accept Bitcoin Bitcoin allows Merchants to accept payments

for their products and services seamlessly and although it's becoming a great tool for merchants to offer their products to previously untapped markets it's the people in these developing countries who will benefit the most Bitcoin is the easiest safest fastest best option for people that don't have bank accounts or that don't have IDs or they don't have anything but a smartphone and there's lots and lots of people in the world that that that's the position that they're in and Bitcoin is this fantastic solution and opportunity for them to participate in the world's economy without having to

to deal with banks and having to jump through all these hoops they just simply install an app and now they're part of the the world's economy something like 33% of the credit card transactions Coming Out of Africa are fraud so nobody wants to take business from Africa it's just too risky with Bitcoin you know the funds are good so as a merchant yeah pay with Bitcoin I'll sell anything you want you know that's legal to Africa then they're able to start having property rights and property rights is really what's going to help lift them up

out of poverty so Bitcoin does get into the the snitch of the underserviced people in the banking industry um so a lot of third world countries they may not have access to bank accounts they might not even have IDs to open a bank account uh but if they have cell phones and if they have access to the internet they can now um have the equivalent of a bank in their cell phone according to the latest World Bank figures there are approximately 2 billion unbanked people throughout the developing world the adoption and use of Bitcoin in

these countries could transform this human rights issue and allow the unbanked population of the world to participate in the global economy for the first time in the entire history of the world anyone can now send or receive any amount of money with anyone else anywhere instantly basically for free and it's impossible for anyone including governments to stop them from doing that and as much as I love gold gold gold gold can't do that right think about that here anybody in this room you can now send and receive any amount of money with anyone anywhere in

the world right now and there's nothing that anybody can do to stop that that was not possible before the invention of Bitcoin and that is a fundamentally world changing technology for every single human being on the planet Wikileaks uh was able to find funding through Bitcoin and this was in the midst of a fincial blockade that Wikileaks was facing at the time the US had ordered the Visa I think was MasterCard as well Bank of America uh to blockade any donations to WikiLeaks say what you will about Wiki you know uh Wikileaks um not necessarily

that I condone everything that they they do but I do think it is very important um for freedom in the world for people to have uh uncensorable ability to to donate money to whatever political classes that they want to and so I thought that that was extremely powerful for uh wik to be able to defy the US in that sense because Bitcoin puts the private keys of wealth in the hands of the user it can be used to support activist causes but Bitcoin can also be used for a night out on the town my name

is Ken shishido I am co-organizer for Tokyo Bitcoin meetup group we have this uh special event tonight having a blessed ansers receiving Bitcoin tips the reason why I do this is that sometimes we want to um make our Meetup interesting instead of you know talking about really really technical stuff or political stuff so this is one of the event we want to make it really fun and and see what can be done using Bitcoin currently if you're living in in most countries buying things is not a problem you have credit cards you can still use

cash and to me that is not the true use of Bitcoin the true use of Bitcoin is to give you Financial privacy which I find extremely important during the Global Financial crisis as cracks in the financial system spread institutions once thought to be Invincible were shown to be vulnerable as we now know governments around the world were forced to bail out financial institutions a bailout is When government takes taxpayer money and gives it to an irresponsible financial institution to bail out their mistakes a bailin is different in the but laws are written which permit financial

institutions to take funds directly from customer accounts to shore up their losses such a thing occurred in Cyprus in 2013 when I started learning about Bitcoin back in 2013 especially during the Cyprus event when Banks were shut down and money was confiscated from people I remember telling my co-workers some of the phds the quants this is really bad this is going to probably start happening in many other Western countries and they were all laughing at me saying no it's just Cypress it'll never happen here and that's when I knew someone must have come up with

a way to get around this problem when a depositor deposits dollars or euros into the bank titled to the dollars or Euros transfers to the bank and those depositors become unsecured creditors of the bank if the bank screw up for whatever reason uh there's now been legislation passed in many of the countries where they can be bailed in meaning that their deposits can be turned into shares of the bank Jeff Berwick is an entrepreneur Financial commentator and podcast host having founded stockhouse.com Canada's largest financial news website Jeff's analysis writings and videos have been viewed by

millions of people around the world it's difficult to say exactly what's going to happen in the future but it's definitely going to keep happening I said after Cypress is going to happen in Greece and then they shut down the banks in Greece for months uh and of interest to people who live in Europe is on January 1 of this year they passed a European Bank bailing legislation uh so that that should be a huge wake up call of people that they're doing that so in Cypress they didn't actually pass it before so in Cypress they

closed the banks then they came up with some legislation and said the banks could just take their customers money to keep afloat uh so they didn't even have that legislation and they did that in Cyprus now they already have it in place so they know what's coming I see Bitcoin as a way to protect and hide your assets and we're not saying this is bad I'm not saying that only criminals hide their assets no uh people that have worked hard and they've paid taxes and they've done everything and like what happened in Greece and Cyprus

where money in bank accounts was just confiscated so if the next time the banking system gets in trouble um it could be users accounts that are raid to help fund the banking system we're talking people with significant money 100,000 200,000 but it's legal money they've worked hard for it some economists believe that the global financial crisis of the last decade was just a precursor to a much larger Calamity if this is the case how will governments react in response to the next failure of our financial system unlike the current banking system Bitcoin allows individuals to

hold the private keys to their wealth however this also comes with the added responsibility of securing the Bitcoins with Bitcoin you're in 100% complete control of your own money but that also means you're 100% responsible for what happens to your own money so it's your job to make sure that you keep your Bitcoin safe people are used to things like credit cards and bank accounts and PayPal and if your credit card gets stolen you just call the credit card company and they cancel it and that's the end of it if your Bitcoins get stolen there's

nobody that you can call to ask to for uh ask for help but uh the other side of the coin there is that there's nobody that you have to call to ask for permission to use your Bitcoins however you you want so it cuts both ways Mount Gau the Tokyo based Bitcoin exchange has filed for bankruptcy protection the announcement comes days after the exchange announced that as much as $450 million of the virtual currency had gone missing CEO Mark Capelli's apologize and bowed deeply on Japanese television it remains unclear if the missing Bitcoins were stolen

voided by technological flaws or both so actually this is the the old Mount gox building Mount gox was the biggest Bitcoin exchange that ever existed I think at some point they were doing over100 million a day worth of volume and um they collapsed in a quite a spectacular fashion in 2004 I think the size of the losses amounted to over $450 million they claimed to have lost 850,000 Bitcoins of which 200,000 were found afterwards in some old wallet people were putting money in and essentially giving them their Bitcoins giving them the control of the private

keys and and the irony is that exact centralization risk is what Bitcoin is supposed to free us from and mount goau just took all of the decentralized nature of Bitcoin and put it into one company with a lot of people's money and then on top of that put the control of that company's finances under one person who has the Keys of the Kingdom so we've probably seen over the last two or three years I Would by my count probably somewhere between half a dozen um to upwards of 10 different uh major hacks of companies that

that are involved in Bitcoin uh and one thing you have to understand is that Bitcoin is fundamentally different from uh securing an asset that's you know that's held within the the regular Financial space uh with Bitcoin if you ever get access to the the private key uh to someone's wallet you can initiate a transaction outside of the infrastructure of that company uh without their knowledge um that's unlike anything that exists currently in in the financial space uh where if you want to take money out of the uh you know that Target uh you have to

have infiltrated their their infrastructure I think it's part of the mentality where people are trained not to trust themselves with their own money and so everybody puts their money in a bank for safekeeping and so that that sort of mentality where you put your money in in some pooled company whose sole purpose is to safeguard it that is a really hard stigma to break to change um and I think this is the thing that's the most challenging about Bitcoin is that it challenges people to question that stigma um it challenges people to take control of

your own money and value and to safeguard it yourself as we know at this time Bitcoin is quite secure if you have more than uh half of Bitcoin netork power you can take a control of the Bitcoin network but technically this is really hard when we consider the current bitcoin uh Power it's almost impossible so from this point of view Bitcoin is uh much secure than the the biggest and most secure portals of some biggest banks in the world the problem is that many people do not trust Bitcoin just uh because there there were a

lot of news about hacking some Bitcoin portals and some exchange uh services and so on the problem is that uh like all services uh based on Bitcoins is not a Bitcoin you know itself so you can you cannot associate or you cannot associate the uh security of Bitcoin Based Services with the the Bitcoin itself the collapse of the mount gogs Bitcoin exchange in 2014 caused much confusion and skepticism about the security of Bitcoin however years after the collapse of the one's largest Bitcoin exchange Bitcoin is now on the radar of many institutions within the financial

industry the big question the conversation you you would you hear is that the question was whether uh blockchain technology would impact the financial industry and now if you go to the trade shows and you listen to uh the media the question is not whether the question is how blockchain technology will will impact and transformed the financial industry it's now a foregone conclusion that blockchain technology will impact the financial industry in a major way so so that's where we are now but we weren't always there uh if you look just three years ago two years ago

um the attitude was that Bitcoin was um almost a laughable concept and it was a unsustainable uh system and it couldn't be applied in the financial space in Japan the virtual currency law has passed in the low house uh and hopefully actually it will pass in the upper house as well in the very near future that means actually government recognizes the the existence of the virtual currency and I'm trying to actually set some regulations um and trying to actually support the [Music] business uh this Bitcoin why it looks uh great you know it's a nice

piece of collection you know it's better than a Yen or a penny some of the areas where Bitcoin has been most popular so far is China which has quite a high level of capital controls other countries like China Argentina Iran uh this is where bitcoin's really caught on to a lot of people because you just simply it's not easy to transfer money in or out of the country without going through regulatory problems or having to know someone in the government and things like that so definitely that is a huge uh boost to Bitcoin the advantages

of Bitcoin continue to increase its popularity around the world sometimes in the most unlikely of places my name is David Hyatt and I operate the Phoenix Rising Cafe in niman this is where our Bitcoin machine is located right next to the traditional ATM machine um so the customers have a choice of using either I saw that the current banking system was rather restrictive and the independence of people running their own banking systems really appealed to me and the fact also that it was digital and we're living in a digital age I just knew that it

was something that would have to get traction over time Bitcoin is definitely the largest innovation in monetary science since Isaac Newton's gold standard going to completely revolutionize how all of our assets are held so it's going to disrupt a law going to disrupt accounting going to disrupt our finance industry going to disrupt so much it will also rapidly decentralize the capital no longer will millions of people accumulate all of their Capital into one big pile that then gets out allocated by a senior vice president of meril Lynch or Bank of America uh it'll be millions

of people that you have to go and enti uh out of their Capital to go fight a war in Afghanistan or Iraq once you decentralize all of those private Keys becomes much more difficult to get people to pay for a lot of these goods and services that they otherwise wouldn't necessarily pay for I'll just scan it and now I have your Bitcoin addressed in my wallet right here and I'll go ahead and enter $1 and we'll hit send mind sending the transaction sent and if you there you go you heard the noise before Bitcoin I

was basically retired I was just hanging out enjoying my life practicing Jiu-Jitsu every day and it was really fun but wasn't really going to make the world that much of a better place if at all um and then I discovered Bitcoin and I looked around the world and I saw these wars being fought in central banks debasing the currency and basically preventing the world from being as good of a place as it potentially could be and I saw Bitcoin and I saw this as a tool to strip away all of their power to do that

most people aren't interested in paying to kill people they've never met in other countries um most people are willing to pay for roads and schools and hospitals so if the government say we need money for roads and schools and hospitals I think people would probably give them a good chunk of that if Government say we need money to go kill people in other countries that you've never been to in your entire life and you're probably never going to go to in your entire life people are going to say no I don't want to pay for

that but with if you're using bank accounts and dollars and Euros governments can seize all the money out of your bank account at any time they can print as many new dollars or Euros as they want to pay for these things at any time if the world's using Bitcoin it takes away those tools from government and I think that makes the world a much much better place for the first time in history Bitcoin now provides the end entire world with a completely decentralized payment system one where each individual holds the ownership and control of their

own Financial wealth one where all users can transfer value and interact freely amongst each other instantly what could the future of our world look like with such a revolutionary tool the possibilities could be truly magical Bitcoin is Magic internet money uh Bitcoin allows you to send and receive money with anyone anywhere in the world just like magic there's I'm I'm at a loss for words because it's that exciting and that world changing with Bitcoin you can pull out your iPod or your iPhone or your tablet or whatever install an app and in less than 30

seconds you have the ability to send and receive money with anyone anywhere in the world basically for free and you can be 10 years old and do that or you can be 100 years old and do that you can be that in any country that's [Music] [Music] [Music] Magic [Music] [Music]