it's crazy because wherever samsung goes the economy of south korea goes there's an old saying about oh yeah well you know i got to give credit to my old pal rick fourteen year old there in stockholm who made the comparison with bitcoin and because of mining to the oil industry and i think a lot of people don't understand the fundamental shift of the global economy due to crypto mining is significant as that which we discovered during the oil boom in the discovery of oil to change the whole global economy the combustion engine and all the huge wealth and influence that came with the oil barons and now we're in the age of the crypto barons and it's not just fluffy pony there are other crypto barons as well exactly well they're getting in on the game and i'll go into some of the details about how significant this is because right now by the way the real the only two. chip companies that control a large part of the market are a bit maine and then taiwan's t.s.m. c. so they control

a lot of the chip market in terms of the fastest mining and most efficient mining capacity but here they're samsung is getting in and they're like top of the game nobody can compete with them on many different. aspects of a production of semiconductor for example for apple but local media outlets reported that samsung partnered with the chinese bitcoin mining equipment manufacturer last year and finished the development of its chips samsung which operates one of the largest semiconductor as i said manufacturing plants in the world will manufacture and supply cryptocurrency mining equipment to the chinese market first which of course is funny because you know it was just announced that china is banning. mining of bitcoin in china but south korea saying we're going to provide some mining equipment these chips for china. some people say that again that's just fake news as well that were or were misreading the statements come. out

of china that china just has there's a problem with the local corrupt officials who are doing deals with bitcoin miners getting the taxpayer to finance the electricity for the mining operations and taking all the money themselves so again we don't know really what's going on in that part of the world but right now in the long term samsung plans to expand its my new equipment venture from china to other regions like south korea and japan that have a stronger demand for cryptocurrency than other countries part of the reason they have all this confusion is that national governments in various locations still don't even understand what crypto currency is how mining works what bitcoin does and that confusion and that learning curve that they haven't bothered to climb leads to a lot of missed policy choices messed up policy choices and it's because of a massive confusion out there so little is known about bitcoin and cryptocurrency is at all levels of government most levels of the go sooner world and even within

the crypto community itself probably less than twenty percent of the crypto community even has a basic working knowledge of how the technology works but if we stay with this theme of dystopian philip k. dick sort of novels it could also be a sort of prisoner's dilemma is this is why there's so much confusion is you know it's like one of those police procedurals where they're going from room to room to try to get the prisoners that you know the bad guys to turn on each other here we're saying like which country is the first to adopt coin or crypto should we be the first if it's all a scam and they're all looking at each other and everybody's moving for incentives or bro it's just the elegance of the protocol just the genie stuff that toshi does want to take over and anyhow the game theory played out in the summer little the summer loans were buying the central banks were buying big prices still and tried to go to a hundred thousand dollars a court and then finally just to put into context what it means in terms of who samsung is samsung has a large scale sophisticated semiconductor manufacturing plant. which are capable of

matching orders of any size since last year samsung has been the sole supplier of o l e d screens for apple's i phone ten production line because it has been the only company that is able to match the supply needed by apple apple has invested billions and competitors at l.g. but nobody is able to match what samsung can do i guess they didn't really need that capacity because apple has not done so well with our i phone ten but samsung is also after this basically going to get into a g.p.u. minor so expanding the market to ordinary investors as well go well if you want to learn more about mining states of us are going to have our guest will break it down doug go a. little more value on the idea that dropping bombs brings clues to the chicken or forcing you to buy the battle. to do so for the tell you that every gossip the public.

has telling you are not cool enough to buy their product. although we along the border walk.

welcome back to the kaiser report imax keyser time now to turn to j.p. barrett of mining storage bad code j.p. welcome thank you all right j.p. we ran into you recently at a at a meet up a bit coin actually the party the anniversary of the genesis block being launched an era miner and this is really fascinating to a lot of people is it fair to say you're in your twenty's or early twenty's or fairly young guy. before we talk about your crypto mining operations tell us about how and when you got into cryptocurrency so i got in the crypt when i was a freshman in high school kind of got my whole school was once a really small high school got everyone in on crypto eval was trading it you know so i guess most fifteen years old sixteen years old but what does your about i think it was about once i tried buying coins through a wall in mt gox and i was like this is way too complicated and then eventually tech crunch another article came out like ok this stuff is crazy i need to do i want to do this and tell myself you know get the coins and i was like well now i

have a core and let me see what i can do with it and then from there it's been just a learning process so there is a story a few stories i've been reading teenagers basically getting into crypto and doing rather well and has it changed your view on. the economy or work or at you know you know you're in high school suddenly or mining currency and you're you're exposed to a whole world of. economics and well how did that affect you you know at that time well let's just say i spent a lot of time focusing on because they went on the rabbit hole like you know a lot of people do and you just keep researching researching a story you learning about how you konami explore how the government works how you know what money is and just kind of really learned a lot and i was like wow the stuff crazy and started taking with my school and kind of spent a lot on krypto by loved and it was worth every minute of it honestly and school. oh worthy or perfect your teachers they were they interested in this and that this

kind of filter back up to them to the old well i got a lot of questions about crypto you know as a young kid and they're always like what is this because a lot of the classmates started joining in on me so we started kind of taking over some of the classes and all the discussions were about the corn and some almost every project i did was about pickle and if i could make it about it so i was kind of the big guy in school so all right cool all right so now when let's talk about the mining so when setting up a crypto mining operation how difficult is it to enter the space. you know as competition for chips it's quite fierce so how difficult now is that get into mining so right now we've actually seen just the past since january first like an eighty percent rise in graphics card prices so it's been crazy i was trying to get into the space because a lot of money can be made but it's just the biggest thing is like i told mining's for anyone anyone can get into it from someone who wants to be a gamer we start a program that you could you know cryptocurrency a computer and get paid and pay pal but you know we invention shut that down but miners are for anyone from gamers to you know large scale is to show investors it's

all about the capital you have an let's anyone play the game it's just the same level returns on your investment it's just you know if it's one hundred dollars or if it's you know ten thousand or one hundred thousand right so you know we hear about the cost of getting into the big mining now getting quite high and you have institutional players and pools getting together but you are mine across the spectrum all kinds of koans right how do you determine what coin to mine when it comes to asset management for miners is a big thing because you know you're mining cryptocurrency we started money or money you know hundreds of a theorem a day if you have proper asset management and proper portfolio management you're able to you know reserve some of those for later down the line and not sell them all so really it comes down to which koreans you think are going to do the best in the future money is kind of you know a hedge to getting into crypto it's a group of people to get in who have been who don't really believe in because you don't can really understand it's like ok why have physical devices make me. i can kind of you know get a grasp of what it is also ok so how do you pick let's say there's something like

fourteen hundred coins out there and depending on a lot of variations yes some are profitable to mine one day and not the next how does that all work yes so i would go ahead and say that most people most of our customers you know my theory i'm in the cash i'm an arrow those like the big three and you see customers will just mind that and hold it but there's also some people that use you know use nice has and has gone ahead and you know truth is the most powerful coins and automatically sell on place that it's really you know why you're in mining are you in it for the long term unit for a hole in the coins and just getting them and not selling them if you sign in for me for profit then you're in a mind something called the most profitable coin and there's websites like what to mine dot com that kind of show you which coins the most profitable but that's which is because you know as difficulty goes down some of these coins in the price are pressured up you know the mining rewards are basically in balance that's not dynamic market so let's say how would you describe cheer grandmother for example she would say j.p. what is mining is it possible to sum that up in

a one minute blurb how do you describe it or how funny enough actually my grandma was one of the first we're going to go out in the morning with me you know back in the day so i kind of explain to her as like so mining is this you know it's a new real estate play for people it's like if you want to go ahead and you know you can buy a small mini apartment complex and you're kind of you know getting money from your tenants and each one of these tenants is like you know when you make the queens and the kind of paying for that so it's kind of you know using that play to explain it to people and kind of payment works in it's just an easy way to explain it it's like a very similar to real estate investment ok that that's maybe too easy yeah oh yeah do you understand mining the words can you just talk to the audience out there what what is what is crypto mining exactly i mean can you break it down what happens so yeah i mean in crypto mining you know you're solving you're building a block right and the whole goal is to build the next block in the block chain and you're kind of go to poor. and you know people join these pools in the pools all together and they also you know contribute to get this block i would say you know

crypto mining if it's for someone who's never heard of it it's just you're kind of securing the block and kind of using now as recently as like you were the you kind of securing the network you the army or the military for this currency you're providing the security you know that's of all the big claims out there of all the if there amount there's no one can you know overtaken have fifty one percent attack or you know overtake the network so it's another way to go about it that you know might helps answer some questions for people who have no idea and you start explaining you know what actually you know the math is in the technical know behind that it's people just they just usually glaze over and forget we're trying to be talking about well i mean j.p. you're a miner you've made money mining do you yourself or is it really necessary to dive into the mathematics too aggressively i mean it's not i don't think it's necessary to this group there's a there's some people that need to do it and people have to have done it and you know with a very thankful for them but you know as a businessman you don't really need to understand the technical background of it

because all the code is out there it's open source and people have you know vetted it and audit it and looked at it it's really pretty simple now you just kind of plug in your computer and kind of start graphics cards can start mining you know different crypto currency like a theorem or you're a sick man you just plug it in connect to a pool now it's going so there's not really any technical background that you need to have to get in the money now back in the day it was a different story but ok so have you got a pushback from. the level of authority could be even a school authority or a federal or a state authority or federal government has there been any pushback whatsoever so i mean not really with anyone from schools or you know in school we're talking about here like what are these mining things are running has really started getting on the computers like testing the now in the school computers and they're like oh what are you guys doing it's like oh it's kind of playing around with stuff they're using the school yeah let's say you know we all tested they were our laptops you know back in the day ok. what about. the most competitive locations at the moment us care iceland china. price per kilowatt is

a metric you hear often do you look at that i mean is that what's going on there the energy cost that's the biggest thing when you come to institutional mining is you know when you're deploying millions or tens of millions of dollars for the assets that electricity electricity costs you know years when it comes to lecture electricity cost the price that out you kind of want it could be you want it for four point five two you know five cents per kilowatt we've seen you know pricing down to two cents per kilowatt in some places in the us and it's really just finding it the biggest thing i've seen is the actually the us infrastructure is having a hard time scaling like the actual power in for some hard time scaling with the demands of these could to currency miners on the some counties in you know in somewhere in the us there were have applications that there's about a thousand megawatts where the power currently just allocated in a queue that's for future deployment but you know you're not looking for the these companies are going to be deployed for you know maybe three to five years because of just the time it takes to build the substations and the time it takes to build out the infrastructure to support these cryptocurrency miners so they use

a lot of power so where were you going in the your education and career now you've been exposed to something that gives you a look at the energy business the currency business crypto mining business i mean you're in the air down evolved a lot of different things suddenly and so you're at the beginning of your career i guess you could say so where's this taking a j.p. word do you think this is all heading for you on your journey so i think for me in my journey i think it's going to kind of walking towards more institutional investors working with them on getting their you know their assets deployed in kind of helping them out that's where i see the you know a lot of the funds moving money is moving more towards you know i think we'll have like you know right now money make your money back in about a year and a half a year to you and a half is conservative very conservative estimate but you know i fancy i think that'll be five to ten years before you make that money back because we're seeing what a year and a half a year and a half or an out of what about this is the gratification i like to get to get the mining started to make money if they want well maybe i'm going to. oh i see you're in a year and a half your cost of the chips the energy costs so surely that is

a group is that number growing i mean it's been fluctuating you know we've seen i have you know six or seven years ago you were mining on your laptop and. printing bitcoins exactly that was worth nothing right. and now you're saying that the cost of the rig what does your company do exactly so you're mining store dot co so what do you do exactly so what we do with its kind of our consumer facing company we're going to manufacture rigs for anyone who's looking to spend you know anywhere between five thousand to one hundred twenty thousand dollars on hardware if i came to you and i said ok up you could do that for that between five thousand or whatever you're saying but i'm i our ally doesn't kick in for a year more than a year where you make money but you're going to make your principal mount on your investment back to basically a year or two and a half so not cash flow positive yet another year year and a half and that's attractive for a lot of folks i mean that's the price of a quiet or crip those were to continue right there in a soft patch you know if they continue to slide obviously that pushes that out

further exactly and what's your view on the crypto market price going forward while i'm very interested in a hit ten thousand you know hit twenty almost twenty thousand dollars that's why our crazy you know couple years ago are like oh we're going to hit a thousand dollars is a big deal but i think you know crypto is growing exponentially you know as i can just as an organization as an organism as a group of people as you know we as a network grows as we see a network effect of you know i'm talking about big corn and that's kind of what i've seen is like you know i talked about pick one of bunch of people now they're all coming back to like oh what is this big quinn thing you're into because i'm like yes i told you about it you know four years ago you should have got in then but you know it's still happening i think there's nobody wanted that nobody dollars no one everyone wanted it eighteen thousand dollars and that's fine with me you know i think there's still huge value decline to think we're going to see you know higher prices you know maybe we'll hit fifty thousand dollars by the end of next year but you know no one really knows and it's kind of like as interest. sure builds as more companies start working in the industry says ok so now you're out of

high school i guess yeah so i was in college at n.c. state university in raleigh and finally just took off and now i'm working full time on money entrepreneur and your fellow post millennial generation has it changed your world to sell crypto space in a big way i mean i think it has it's given me you know there's a lot of opportunity in this market and it's allowed me to really like you know i always want to be an entrepreneur kind of take that and be like ok what's wrong with this and you know really see what we can do and what you know my generation can build in this into the block and i think watching going to play a huge part in the tokenization of like assets as we move forward and you know with you in just in a virtual world all right well thanks so much for being on the show thanks all right well that's going to do it for this edition of the kaiser report was made back as are say several i think i guess j.p. barrack of mining store dot co if you want to reach us on twitter it's kaiser report and told next time by.

i'm here at money field stadium in edinburgh the home of the heart of scottish rugby i'm here to interview a scotland legend. a man who fought many great bottles on this puts behind me now he's engaged in the greatest bottle of all his struggle against motor neuron disease. the eh. eh.

eh eh in. syria calls on the un to hold the u.s. coalition to account for wednesday's airstrikes targeting pro-government forces u.s. central command says the attack was to defend american impact group. with the winter olympics about to begin and dozens of russian athletes are still waiting for a ruling to decide if they can compete in south korea while norway is the latest country to face don't think allegations. republican lawmakers in the u.s. are threatening to cut funding to a global cancer research program after it leaked america's most widely used we alone made by giant company monsanto to counsel.

this is r.t. international coming to life from moscow on a partridge thank you for joining us. syria has called on the u.n. to hold the u.s. led coalition to account for wednesday's airstrikes against pro-government forces the number of casualties has not yet been confirmed but some reports claim up to one hundred people could have been killed u.s. central command described the attack as a defensive move but russia's defense ministry said the unit was hit as it was carrying out an operation against an i still sell. and for every decision while carrying out an operation to locate and terminate an sleep or so near a form oil refinery a unit of pro-government forces were suddenly sholden in hit by airstrikes by the u.s. led coalition vis was overkill if the numbers are true i would see

a demonstration of she have brute force perhaps you know to send perhaps the send a message nevertheless the united states says that it's it's in syria and it will defend itself and it has the right to defend itself in this instance syrian democratic forces acted in self defense with support from the coalition to defeat an unprovoked attack by syrian forces in eastern syria if the situation is like how they describe that they were indeed attacks while fighting isis then they have the right to self defense well if you take them at face value you could think so but the people they just killed were also fighting isis and recently they had been making much better progress against isis then the united states led coalition or their partner forces the the s.d.f. the syrian government has of course called all of this an act of aggression

unwarranted and unjust but just for your information all of this happened in there is or near a rich oil field and refinery conoco it's called it was liberated last year by the u.s. led coalition very quickly and fact. u.s. partner forces seem to have a knack for liberating areas with oil under them much quicker than they do those areas that don't have oil under them since since all the oil rich areas were taken in there as ordered by the s.d.f. progress against isis seems to have dropped to a snail's pace but you know regardless. here america has said that it is in syria only to fight isis today isis has been all but defeated in syria but you don't see the pentagon packing its bags our military policy in syria has not changed our priority remains to defeat of isis whether it's in iraq or in syria that is our

intent to defeat isis and not do anything more than that the united states will maintain a military presence in syria focused on ensuring that isis cannot real merge total withdrawal of american personnel at this time would restore assad who continue his brutal treatment against his own people the principle of a lack of a fundamental commitment to our agreements that is typical of the current u.s. diplomacy moments including the reasons why the americans stay in syria rex tillerson peter the statement that only goal in syria was the defeat of ice it was now they've got far more ambitious plans with more of the most with the mixed messages here is the pentagon staying general mattis said that the united states will stay in syria we'll fight in syria for as long as the united states wants to fight in syria i mean that's you know pretty direct now you see how this might

sound strange to go to syria and a vital and while there you start killing syrians in syria in self-defense. regional experts told us that with islamic state practically gone from syria washington is now targeting the country's government instead. they are not just in syria to fight their own. have been in syria for a long time because they want to throw aside as the spate of feeds as it becomes clear that it is the syrian forces themselves and largely free to die age the priority of overthrowing assad begins to reassert itself in the pentagon and in the white house so i think that's really the answer the question the overthrow of assad was always the product prone the reason why the americans were in syria the army in treating these groups intervening with air strikes and so on they were diverted from that by no with the possibility of

a defeated diet inside syria that policy that reassert itself this is coming at the end of a long war the united states has taken is about twenty eight percent syrian territory and over fifty percent of its oil this is leverage in order to roll back you want and get rid of our side by side just like that he wants to do well for himself there was a race only a few months ago would get those fields and he's proving undoubtedly under the pretext of biting isis the united states didn't think it was so the united states is trying to lay down the law here and not let anybody probe and as we know it turks threatened and rendition could take on the americans over there so the united states i think it's very pages that those in turkey will begin to push america out and try to push americans out of northern syria but he likes there. now is just hours to go before the winter olympics start in south korea dozens of russian

athletes are still waiting to hear if they can compete forty seven of them have appealed to the court of arbitration for sport to overturn the i.o.c. ban over alleged doping violations among those who have filed appeals are some of russia's most celebrated outlets they include six time olympic short track speed skating champion victor on and defending biathlon champion porn in. reports from the olympic host city. for almost two and a half hours the court of arbitration for sport was listening to the russian side which have now left led by their lawyer so these people won't get another chance to give their arguments to the court and now it is all to the cast members they promise to announce some sort of decision by noon korean time on friday to go over to the bone we continue to depend on the gas pump listen to our arguments and the

decision will be reached within twenty four hours so things won't be decided to a few hours before the opening ceremony which of course puts extra pressure on the russian athletes on wednesday the secretary general hinted that still there might be at delay now here we are looking at three scenarios either cas decides to do nothing about the international olympic committee's move not to invite the russian athletes who have never been caught for cheating and without specifying the particular reasons for doing that or the court of arbitration for sport chooses to give the green light to the russians and in that case that would be a massive blow for the audio scene and that would in turn mean that the international olympic committee discriminated against the russians the third scenario we heard about from an online leak that cannot be confirmed but reports are suggesting that there could be

a split decision on the russian athletes i'm standing by here at the temporary home of the court of arbitration for sport and i'll give you any news as soon as it comes out. will sports fans have shown that support for russia's athletes by projecting a light show onto a building opposite the world anti-doping agency headquarters in canada the message says the only doping among the russian and team is the support and love of the russian people that russians are coming. but other athletes whose participation in the games isn't in question now also employed in controversy that's after a norwegian state broadcaster published a list of drugs that norway's team doctor has brought to pyong china well are remarkable amount of asked my medicine was noted six thousand doses containing banned substances that's ten times more assman drugs the neighboring finland brought to south korea. well the quantity of aspirin medicines has raised

a number of concerns most of these drugs contain substances banned by water the diapering watchdog argues they can enhance an athlete's performance by expanding their lung capacity the norwegian anti-doping agency has also admitted the country has a problem with the overuse of asthma medication it is common practice in no way to occasional use asthma medicine in major elements in the rest between system even with the diagnosis vastly is not specific. the latest revelation comes after the release of a documentary that alleges the existence of an organized doping system at norway's skiing federation one of the journalists behind the film told us there are major downs over many of the competitors at this year's winter games the. federation is very angry about this they don't want to talk.