that quantum computers exist if not the most or the real one the real suppose she and his bitcoin every move the million bitcoin that he mind so that's an excellent point it would be a safeguard it would be a signpost it would be an indication that quantum computer had hacked into the big client protocol and a significant way what about all those quantum computers that here are we in danger is it all happening is unraveling it's tweet i saw from stacey herbert and oh that's very. crypto is already quantum whoever looks at it observes whatever they want to see and this is in response to all of these regulators in the u.s. you know we have more regulators in united states that we have intelligence agencies and they all want in on coin and crypto currency and they're determining what it is so here's a succinct tweet from mines fiction and he says crypto is considered property by

the i.r.s. money by the treasury department commodities by the sea f.t.c. and securities by the f.c.c. in before c.d.c. declares crypto a pandemic. isn't this fascinating they can't really decide what it is you know all these regulatory agencies are looking at it and they see it as a reflection of themselves in some way there is a case to be made that it does resemble to some degree a commodity i've said since two thousand and eleven it is a but it is an emerging asset class that is none of the above somebody made the comment that it's like a duck billed platypus right it's got features from all these things in and one thing and you would think it would work but it does work so it's not really any of those things it is a unique asset class we haven't seen anything new in the world of finance master classes and hundreds of years really this is the first thing. we've seen new in

such a long time and so that's why it's so interesting to see how regulators approach this because they don't really have the tools yet to regulate it in the way that they've become accustomed to there needs to be a new agency spawned you sound exactly like brian quinn tens who is a commissioner of the c f.t.c. and somebody or quote sarah wants exactly as he recites looking at crypto currency but before that i just want to point out that what has happened in the past week we can have is that we've seen a federal judge judge a u.s. federal judge determined that the c f t c can basically go after coin as a commodity we've also seen the f.c.c. obviously say that all of the tokens that they look at that they see them as securities and then we saw fin san in the united states determine that exchanges are basically money transfer so that bitcoin encroacher currencies are

money so mark marquess centaury who is a crypto lawyer he pointed out that that's technically and legally impossible for an asset to be both money and a security it can only be one or the other so it's going to be regulatory mayhem and as they cancel each other out potentially they won't work together of course will probably just create a mishmash of isolation for a moment that it was considered to be a trans a merger heard you say which was interesting because there would be killing the old world and assuring in the new world of crypto which is transforming the global financial big way i think it's going to have the biggest impact in countries and regions of the world that have no formal banking in place now so across africa and other places is where the crypto revolution is really going to take hold it won't be in london or new york. well we'll see time will tell and of course part of the

problem has been that while queen itself is an amazing innovation that nobody can figure out what it is but it is that it works is that many of the people who have made it big in the big point space lack the imagination to come up with their own words and phrases so they use words like i.c.a.o. which taunts the f.c.c. saying who they are the regulator for i.p.o.'s so calling your is not an initial public offering but an initial coin offering only taunts them and says. you know really the model for the skype you know the creators of skype and they totally destroyed the long distance market in the a less funny business they purposely never refer to it as telephones are these none of those no moisture are going to protocol they just did stuff to tolu avoid that and they snuck in ubiquity before the regulators could shut them down in the coin

space because space to use the word coin itself was problematic i see it was problematic they should have just gone with tokens should have been a bit token or something token originally they should've avoided all the words a normal place or referring to money from the day one they would have avoided a lot of these issues now i mentioned brian quinn tends from he's a commissioner at the c.f. t.c. the commodities futures trading commission and here's a headline from coin desk where he says crypto industry should self regulate c f.t.c. commissioner regulations can take years to develop so why wait when you can self regulate that's the message us commodity futures trading commission commissioner brian quinn tends to liberate to the audience at the d.c. blah change summit last week i believe that a private cryptocurrency oversight body could bridge the gap between the status quo and future government regulatory action he told the audience in his keynote address contents also suggested that a cryptocurrency self regulatory organization or an s r. you could have an impact

beyond the u.s. market and could potentially take on global significance it goes into all the. cryptocurrency is actually many things and that's why so many regulators one in on it but this notion that how about self regulating why not come up with your own regulations and. part of this is that the ecosystem of crypto currency while there is no one voice to speak for bitcoin there's no said toshi nakamoto we don't know who he or she or they were there are also many libertarians and anarchists who you want nothing to do with government so nobody wants to have any sort of regulations but there are obvious scams out there are many of the i c o o's were obvious cams and who within the community is going to step forward and say we need to end this look nobody buys it going they escape it that's what gives a value is the crumbling world because free out doesn't work. emerged

and there have been attempts to bring some kind of oversight or regulatory body or type of pownal to get a big point foundation for example came and went and it didn't really work it doesn't idea of having a centralized force in this way doesn't doesn't work and it's already self-regulated big the protocol regulates itself it doesn't need an outside regulator to regulate it if somebody wants to come along and try to encourage best practices and encourage how to get good wallets and how to protect your individual sovereign say that's a great idea but it does it's not going to the state to start to come forward and say here's how we're going to help you create your individual sovereignty so you're not reliant on the state by promoting best practices in the big coin space so the state is not going to do that and all these regulators are functions of the state so they're not going to be helpful in any way a lot of people would say that getting wrecked is self regulation that's the way to get regulate it is like you should have done your due diligence he said and studied

a little bit where you want it used to be like that until nine hundred eighty seven the crash of eighty seven brought about the plunge production team of reagan robert rubin alan greenspan they started buying and selling stock futures in the open market for the first time in american history guiding the price of the dow jones so no. we had to experience a down day and this is the beginning of the collapse of the american economy and anyway so you can apply that to everything in life there needs to it's like because allah says i'm without hell you need the good and the bad any of capitalism to work both winners and losers you can't bail out every single bank that gets into trouble you can't bail out every single county capitalist i need free money you gotta let the system weed out the losers otherwise you end up with you know a state controlled state maintained price fixing regime by the state that resembles all failed such experiments of the past why not just let the free market be the free market well here's brian quinn tents and of course he is

a regulator he's at the see if t.c. and when clinton remarked in the interview that big question is absolutely clearly not a security it is absolutely a commodity he also said that the aforementioned agencies and others should avoid reducing the broader space to one type of product in reality it's a very broad array of innovative products being created some are very simple some are very complex some have utility function some have security like features some have payments associated with them or returns or ownership or sure some could have voting rights you get into a very murky landscape very quickly as you go through the diversity of the landscape here let me help this fella understand what's going on you know here in north america we are faced with an invasion of the tiger fish not just in north america but in florida in particular in florida in particular because they released this fish that's natural to another. part of the world in asia it

came in and it is now devastating the ecosystem now of the coin is the tiger fish money it entered into an ecosystem dominated by the u.s. dollar fee our currency and is now. it was eating it it's destroying it is pushing it out of the way and there's nothing you can do about it and because it's it's it has evolved it's a quantum leap we started talking about quantum physics this is a you know electrons are there in there in one orbit or another there's no in between it's the can't land on a fraction ok it's three places a corrupt broken system where the new better system full stop you can't do anything about it game over you can try and full around in a way so a lot of money but you know as you will of course because that's your nature but again like the to use another analogy of the frog and the scorpion you know the

frog taking the scorpion over the river and he says i'll do it but don't sting me and sure enough the scorpions to get the frog and they both drown and the frogs is why did you do it and he says because that's my nature. crypto is going to be here to stay regulators will try to destroy it even though it's stupid to do so because it is their nature they don't have the comprehensive ability intellectually to understand the seismic paradigm shift that they are trying to deal with if my god are already in a time already what well i think you mean lionfish not tiger fish and they have no known predator in the caribbean they do in the pacific ocean but not in the caribbean so that is part of the problem i had overproduced the same thing happened up until. the introduction of bitcoin is the us dollar had no known predator and then became the thank you for making sense of my analogy ok so then allergies been

cleaned up in the following way as a lion fish and not tiger fish there's no known predators which is why they've been the dominance and had no known predators up until big coin. is that it or say i have clarified i d crypted you're an allergy and at the same time cleaned up your code which had misprinted tiger fish rather than lion fish it's all so wonderful don't go away and more coming your way stay right there.

is a. church secret indeed priests accused of sexually abusing children can get away with it literally i like to call this the geographic solution so what the bishop needs to do then he finds out that the priest is is a perpetrator is simply moves him to a different spot were the previous standards not. highest ranks of the catholic church conceal the accused priests from the police and justice system to that end of that's known as the i intend them. to do.

well you know the cars they were kind of adopted because we were called pirates for so long. i mean they're in this small boat snit's a hard pull of ships and it's standing. on top and. the limo self did big cold fish already ninety percent of the dot and it won't be calmer. yukon's fifteen scoops seventy five tons tonight and they do it several times a day with a clean collar you get an idea of why the ocean the fish. we have to understand we could not stay still would just. be with miss the deal going through the hours. i'm doing this because i want the future world to the future can generations to have and enjoy the ocean we have.

welcome back to the kaiser report i'm asked as i'm going to turn to jamison lop of casa hoddle or hodell the penny and i pronounce that jamison welcome back great to be here all right first tell us about costs hoddle sure yes so we're just going by costs you know the problem is some squatter has the cost of a twitter account so casa hoddle on twitter for now but in general what we're trying to do is facilitate the ability for people to be their own big bank and you know we've been given this promise for so many years that with the queen you can be your own bank but to be honest a lot of people don't want to go to the trouble of being their own bank so we've learned a lot over the past few years and i've spent three years working at bit go doing

multi-city enterprise hard wallets and now i'm kind of transitioning to focus on the individuals i think there's a gap here where especially with the price run ups over the years we have a lot of extremely wealthy crypto people in the space who are not doing their due diligence to really be their own bank and so what right so a lot of people want to be that on bank but they're not engaging that a bit the it's hard to do right so you're trying to come to market with a product or something that will make that easier so how is it the product is easier how right so we really want to make it as simple as having an app on your mobile phone that you're just following the wizard instructions and we're going to enable the security by having three of five multi sig while it where most of those keys are going to be on different hardware wallets so you'll then have your hardware wallets that you'll geographically separate and have in different secure locations and we'll be providing full service best practice advice and you know

phone and e-mail support if you have any questions ok so this is a start up exactly right and roger marriott well we are all over the place right now we we have. people in multiple states around the united states ok so good luck with that will keep close tabs on it let's talk about. the big picture here so twenty seventeen was the year of a theory m i c e o's the great big coin civil war which resulted in the summer of fork not the summer of love what do you have to look forward to in twenty eighteen a lot more of the forking for sure in fact you know there are some people who have said that we could expect as many as fifty fifty different forks as it becomes easier for people to do that for the uninitiated out there quickly a coin fork is what we're specifically talking about is a big coin block change for there have been software forks a big point for many years but the idea being that you say you know at a specific block specific date we're going to create

a new divergent history of the big block chain and everyone who had big queens at that time now has the new tokens on the new chain and you know you can change any of the rules of the protocol that you want to and that is resulted in people doing a lot of very interesting creative things and this of course as we alluded to create a tremendous i would say drama in twenty seventeen the summer of twenty seventeen and the seem like the forces of quote unquote good prevailed i guess one camp would say and gave a segway it and as a result now we have the stage is set for a lot of development coming. as both a pro simplicity let's talk about these because this is really some people would argue that the crypt to look at most would be the crypto with the best technology and because seems to attract the best technologists and let's talk about these

things the lightning network is the status of that was it means we have progressed pretty far even just in the past few months where now there's actual usable lightning so. if where where you can either run on the tests now or if you're feeling particularly adventurous you can actually run it on main that but there are definitely still some bugs in there that are needing to get fleshed out so we're not recommending putting you know actual value behind it yet but you can you can go to lightning dot network and see a lot of the development and apps that people are building all right signatures so that's a little bit further out probably be at least a year or so before we see people actually using it but that's going to be a really under the hood thing where i think like the average user isn't going to directly see much from it we're going to see more efficiency gains basically from individuals and people who are receiving lots of transactions and then having to spend all of those you so it's really just a consolidation of the signatures to make the transactions more compact use less

block space and therefore be cheaper on the feeds so this all of kind of falls under the heading of scaling and this is a benefit ongoing debate and the because space is not scaling fast enough it's not scaling the way people like it people trade for x. they don't like the way it scaling of the view that is scaling exactly as it needs to scale there's no faster slow to scaling it scaling as it is it's they the protocol was launched in january of two thousand and nine and it's still in exactly what it looked at expected to do no more alas is that is that a fair statement yeah i mean i spent ten years doing web app development and special ops specific specifically like scaling problems in web apps and in the way the scaling works is you you become more popular and you hit some bottlenecks that hurts you know it's painful and that's your incentive to then make changes to make it more scalable and this is a cycle that will repeat over and over probably in perpetuity you know that the way

encryption works of course is that it's a lot easier to create encrypt and then to decrypt a simic asymmetry involved in this is part of the reason this is really the base. the whole truth of work algorithm but it's also can be said as a lot easier to create an all quiet era for coin that is to create bitcoin in other words i say this so is this an attack vector and you have you know other words people can come out lots of coins a lot of four x. seven gobs of lots of cash on the sidelines and does as swamp this space does attract regulators as it does it stink in a way that's unhealthy. i mean it has created a branding war it's been a real brain drain for a lot of people in the community arguing about what is the real bitcoin also from a technical standpoint you know when i was working at big goo it was causing a lot of developer drain for us having to expend a lot of resources to support various forks and you know it's unclear how the long term viability of those different things is going to end up or let's go back to our

list of scaling initiatives that are coming down the road here bullet proof so that is going to give us better privacy which i think a lot of people have been waiting to see. so we've had these various ideas for things like confidential transactions and then cash for example is doing there's your knowledge proofs but in general these great privacy advancements they have a lot of blute to them they require a lot of data and of course with the block size being restricted you want to use as little data as possible bulletproof so we're going to enable us to do these more privacy centric signature schemes without requiring huge transactions you know them back to twenty fourteen or so a lot of these all this came in being it was in response to a lot of people believe the scaling issue in terms of the slowness of scaling etc and so a lot of coins that are focused on privacy. narrow even dash are these coins.

are these developments going to such a cannibalize those coins to a degree because is there anything that can be done. in an altered coin that can't be done because. well from a long term standpoint technically you know big or any of these protocols can theoretically be changed to do anything of course we've seen the social dynamics to make that a lot more complicated but i can say you know for example marrows already working on implementing bulletproof because it's going to be a huge advantage to their efficiency now it's likely to cost brought in first so you can argue charlie and that did those guys it was a push to the ball forward a lot of ways and as showed it worked and it was so there that was a net i think a positive thing that was done in the space. let's go down our list ok here's one member wimble i guess this is another harry potter reference it is and the project

that's implementing member wimble is actually called the grin project and this is very exciting cutting edge stuff that i can't even claim to fully understand myself but suffice to say that they're really rethinking a blocked chain such that they're targeting extreme privacy and extreme scale ability at the same time which we haven't seen before the easiest way to describe it is that a block in member wimble only really has one transaction and it regardless of how many people are transacting with each other these are all second layer apps member wimble will be its own separate watching ok at the moment it's just a test network so the name of the company is going to be. at the formal name of the company just cos it's just possibly a call consomme ok your comment to this from what you perceive to be the number one issue for adoption i think are a big issue for adoption and talking about adoption now people are starting to get a bit nervous about all the regulatory heat that's coming on and we've said for

many years that bitcoin the regulators drop dead that's been our message. it's self-regulating in a sense and we're going to another attack vector that needs to be overcome because the regulators after all were regulating all the banks in two thousand and eight and then the genesis block that there's a note right there chancellor on the brink of a second bailout for banks so big in the regulators are essentially oil and water in a lot of ways. where do you think we are and this is now the regulators going to burn themselves out trying to regulate because because they don't know if they still don't understand they don't the some call a commodity some a currency some sick currency some a security they can't even decide what it is. are they going to burn themselves out and we're going to overcome this hurdle james well they can't i don't know if it's

that they can't decide what it is i see it more as you know every regulatory agency is going to define these crypto assets in whatever way behooves them to have the most control over you know deciding how certain entities interact with them so we're going to see a lot of regulation that is going to you know put some pressure on the custodian of these assets so especially like the exchanges or in the case of ice using tokens whoever is issuing these new possible securities and so we haven't really seen i think any governments try to regulate these protocols themselves that would be interesting to see if they actually go that far but i think the at least understand that you can't regulate you know data or protocol they have to focus on regulating specific people that are in their jurisdiction right and so should not come out is anonymous and also we've often said a million times at the exchange is

a kind of the vulnerability the weak point the thought process and so that they clearly this is where they're starting to to to attack and i think trans like the long. and which has now been bought out by circle huge back backed up by goldman sachs and my portend a trend away the big banks decide to get into this business by dominating those exchanges and then they can go to work kicking off coins that they don't like they say for saying when you bet all right well that's going to do it for this edition of the kaiser guys or as they say everett like to thank our guest jamieson all up he is with costs or consol depending if you want to catch us on twitter at kaiser report intellect on. twenty eight team coverage we've signed one of the greatest good people. but there

was one more question by the way who's going to be our coach. guys i know you are nervous he's a huge star and a huge amount of pressure you have to be the center of the football we would you. agree. you are the rock at the back nobody gets past you we need you to get the go . alone. and i'm really happy to join. russia meet the special one. needs to just read the review. the latest edition as we go. in the heart of the swiss alps this is a place probably most secretive the pentagon more mysterious than the cia and

pentagon didn't for knox costumes are here permanently all the science is controlled by them and they impose the opening times. it was just from his own press the procedures in place of the strictest in all europe masterpieces by artists like picasso and modigliani i kept boards and sold inside this warehouse that's where the report comes in it covers a deals which are naturally discreet commercially discreet step but also discreet secrets they concern frauds. some of those paintings are linked to dark secrets nobody knows how many of these secrets a kept inside the geneva freeport strong position that you'll never obtain an inventory of all the works in the freeport who knows how many there are three hundred three thousand three hundred thousands is it a matter of confidentiality only is it the world like the our business.

day yeah that. russia's defense ministry says it believes that extremist groups in syria are planning to stage both black chemical attacks to give the u.s. a pretext for directly attacking the assad government. passes rebel control of syria's eastern ghouta crumbles the day before.