oh welcome to sophie shevardnadze digital currency bitcoin once a toy for computer nerds is now storing and prized triggering a new gold rush is it just another bubble or the glimpse of their radically new financial future i ask rick. because in cash and founder of the swedish pirate party. the new craze is making people rush into cryptocurrency investment with the digital money skyrocketing value putting it into the spotlight but aside from causing a new gold rush promising to completely transform the way we use money what will

peer to peer money exchange do to the global banking system what role will the world's governments be left with when bitcoin goes global and can overcome its unstable nature to bring about a radical financial revolution. yeah welcome to the show it's really great to have you on our program now you predicted bitcoins thousand fold increase back in two thousand and eleven and indeed from one dollar in february twentieth i would hit a record high of almost seven thousand eight hundred eighty dollars last week that had a plunge and it's back up again now why does a keep growing and is there any price limit for coins. yes there is a price limit for bitcoin and cryptocurrency it is not it cannot displace more money than exists in the world so there is an upper ceiling. upper ceiling if you're just regarding bitcoin as a commodity on the market which i think it is like any currency can easily go to

one million or more per bitcoin it's important to remember that. bitcoin might not be the final crypto currency crypto currency will displace the central bank money but with social networks we had six degrees which was reflected replaced by friendster which was replaced by my space which was replaced by facebook so some crypto currency is going to be worth a lot of money which one well that's a gamble so we're having this because i split right without going into much detail we have two different versions of because as of now you are the man behind the bitcoin cash this is a new version of bitcoin that was created according to your organization in response to the ears of mismanagement of the be quiet legacy network is big corn decentralized nature it's accolades hill is it going to keep splintering because

there will always be someone in the community who will be unhappy about the way functions. the key aspect of bitcoin is that it's permission less you don't need to ask anybody's permission to do anything and this is key in the entire community which is why i decided to publish a letter where i was chief executive officer without asking anybody's permission as a way to illustrate that we're not asking permission that's just part of our community the person the person who's behind because in cash would depress merely be a french name. says cher who started working on this with again without asking anybody's permission now if you don't have to vibe coins you can mine them by using a high powered processor like they won in a video card and the gold rush is on here in moscow ready had video cart shoreditch you literally couldn't find any stores ever what it was buying them up to furnish

the coin mining farms but can because i really make everybody rich no bitcoin cannot make everybody rich. bitcoin right now is a huge wealth transfer to those who understand. its implications early on the wealth transfer of this magnitude was around eight hundred fifty it was about those who follow the oil there's a huge wealth transfer going on right now where those who used to be poor nerdy geeky sitting in their mom's basement if you like are suddenly the new millionaires . and that perhaps more than anything is going to have a profound effect on what the future of our society looks like because for the last two hundred or so years it was the people who found that decided where money went

what research was made. and when the geeks and nerds are sitting on that money and deciding what research gets made it's not going to be a better diesel engine it's going to be a better solar panel is going to be teleportation is going to be space travel i think that's going to be one of the more profound changes happening here and wealth transfer to an tiredly new type of people. everyone john wallace bandwagon or is it. well it comes and goes i mean if i can't give financial advice but if cryptocurrency fulfills that promise and there's no indication it wouldn't. the equivalent of one bitcoin needs to be in the two to five million dollar range but at that point it doesn't make sense to measure it in u.s. dollars anymore because the u.s. dollar won't have any measurable value so. it

is absolutely not to late just like it wasn't too late when the bitcoin was a three dollars or thirty dollars or three hundred dollars or three thousand dollars but this is a very high volatility. this is a really risky investment and if you're asking me whether somebody should invest then the answer is nobody should ever invest more. being capable of losing every single cent of it called my sachs c.e.o. lloyd blankfein says because i may be another bubble just like that of the dot coms and j.p. morgan chase c.e.o. jamie dimon compares cryptic heresy to the dutch seventeenth century meaning don't these men have a point i mean a bubble forms when there is public ignorance and with most people have they what it is and how it works. i think that i think you have to point the most people don't really understand what bitcoin is it is peer to peer electronic money that

means i have a phone here i can use that phone to transfer money to a nearby phone or to a phone on the other side of the planet the transfer is instant it is practically free nobody gets to decide whether i can make that transaction or not including financial authorities and that in itself will mean a financial revolution this is an extinction level event for banks banks will no longer be a necessary middle. more than anything why i believe this is the future of finance i'm a name that he makes. obviously very popular but it also enables crime to remember the interests want to cry or run somewhere this may this can potentially make governments restrict frequent trait substantially and that drastic slump in its

value do you think cryptocurrency can partially sacrifice anonymity to ward off shady users. it is more traceable than any money that came before it because every every single unit of bitcoin is traceable through its entire monetary history through anonymous account but once you are the anonymize one account you can start on raveling where the transactions go. the second part of that question which is more interesting is the government's. bitcoin is a peer to peer currency a peer to peer technology means that there is no middlemen. governments have been trying to stop peer to peer technologies since napster and they have been. completely unsuccessful as anybody could possibly be and. so i don't see them being able to stop here to be a currency either which leads me to the observation that

since there is no middle. there is nobody giving permission when i'm buying a bottle of water with a credit card somewhere in the background is a bank giving me permission to buy a bottle of water with a credit card and that is a horrifying thought because that means that the bank can also deny me permission to buy a bottle of water. nobody thinks of this but it's there with bitcoin this is not true there is nobody needing to give permission in the background there is nobody who gets to say no to a transaction no money can be forced no money can be seized and here's the big problem for governments in the future taxes can no longer be forced i get all the three points that. you. said like

before you said it's traceable with want to cry we know where the ransom money is going but the accounts themselves are anonymous but if we know that there is an account with ransom money extorted from ordinary users and it should we have the ability to freeze an account take it back no why should you i mean this is either you know that here you are working on a new invention a beautiful convenient currency and people use it to pay for child pornography or to order a hit in someone actually they use the u.s. dollar for that yet i never heard somebody arguing against the existence of the u.s. dollar with that argument if you're going after drugs trade then the u.s. dollar is unparalleled in use and i never heard that being used as an argument against the u.s. dollar well the complete implementation of cryptic currency make compulsory and impossible what happens to really live governments then like with what will be coined make them is

a little interesting. is that what you're hoping isn't that interesting i don't i don't i can't predict that the changes we're about to see are so profound. when you can no longer just go in and take somebody money but the worst you can do as a government is to make them sorry for not giving you giving them your money you cannot force it you cannot seize it the changes that is going to bring are so profound to society. we are going to see a lot of governments panicking when they realize they can no longer just sees whatever money they want will take a short break right now and when we're back we'll continue discussing what's behind that meteoric rise of bitcoin with break their father founder of the swedish pirate party and cryptocurrency evangelist stay with us.

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we're back with rick fucking and founder of the swedish pirate party and cryptic currency vangelis discussing the future of bitcoin welcome back rick now do you think that governments can come up with its own version block change currency make it traceable registered and insured or not we ever evade taxes or fines or hide their profits i know banks are trying to citigroup for instance is definitely doing it right now. there are governments trying there are banks trying there was this sort of mantra or cliched last year on year before last it's not about bitcoin it's about the under innovation of bitcoin called the block chain which is a solution to a really really really hard problem as in the century how do you make sure that

a lot of people are agreeing on everybody's account balances. because there's obviously an interest in somebody saying that no i have more money and everybody else needs not agree with that governments and banks don't really think in this way but thanks think that they can start a block chain technology and then issue more money down the road governments think that they can start a block chain currency and issue more money down the road but the whole point of a block change technology. is that you are trusting in the mathematics and not in the issue or in this way the block chain a block currency versus a central bank currency is a lot like open source software versus proprietary software like apple

marco s or microsoft windows it took thirty years but in the end pretty much every single computer web server is running an open operating system in the same way i predict that we'll go from proprietary money to open money permission less money like that coin. now because if it exists a cryptic currency will eventually replace all regular occurrences become the world's only money but can't print a currency is really work for everyone in the world i mean internet connection isn't a permanent thing people in a sri lankan jungle aren't online all the time for instance and have of african people don't even know what a cell phone is to go online. one hundred years ago we asked. what about the places there aren't electricity how will you use an electrical engine then today there is electricity in most places and where there isn't an atrocity there

are batteries there are some specialized cases when you go camping when you go hiking when you go survival training you don't have electricity or internet the way you take for granted but overall i don't see it as a long term concern. you won't have access to the internet because we are just as we speak there's a network of satellites being put the internet in every spot on the globe. at top banks tragedy current monetary system is too unstable and prone to high inflation at its didn't fail well cryptocurrency filling the vacuum if that is so i mean how will it change franking. i think you're spot on there the european central bank is printing used to print eighty billion euros per month just propping up a gigantic bubble happening right now it doesn't do that anymore it just prints

sixty billion euros per month in the us federal reserve was printing trillions of dollars inflating the money supply we know how this ends once a government starts printing money to pay off its own debt the story doesn't have a happy ending anymore it just doesn't history is brutal on this point so cryptocurrency doesn't really need to replace the us dollar replace the euro it just needs to survive while those behemoths collapse under their own weight and that. when that happens it's going to go fast so will they widespread use of cryptic currency while promising a new level of liberty actually discriminate older generations on many won't be easy for older folks to get used to this complicated their usual stuff right well

it does advantage stand it isn't it is complicated it is too complicated it is it is not usable enough it is not usable enough at all and i agree that this has always been something of a problem in the nineteen twenties when households were electrified there was a training curve where older folks were being shut out from all these new electrical appliances because they had to really learn so much when computers arrived it was the same thing when smartphones arrived it was the same thing there's always a problem where a younger generation needs to take responsibility for if you like introducing the elders to the ongoing changes of society fortunately there is a you there's usually somebody in every family who does that but the concern is absolutely valid and the first time because i was used to pay for a real service it cost a user ten thousand coins to get into pizzas now you guys were seven marion's

dollars right i mean thirty five million dollars per pizza i wonder if that mare really wishes it could at home cash is backed by theoretically gold or the government's ability to pay debts where did all this in say values come from been calling what's backing a bitcoin like any commodity it has value because of two simple characteristics it is useful and it is scars meaning that there is not an infinite supply of it. it is useful because i can use it to transfer value to malaysia on a sunday without anybody interfering with transmission it's finite because there's only ever going to be about twenty one million bitcoins. those two things make it valuable not that it's backed by a government because it isn't. there remember anyway it's kind of like gold and

there's been many cases of coin set with this later latest. setback a case of stealing tens of millions of dollars worth of bitcoins is not really saved you keep your mess and say i mean considering that the hype about its rising value is surely attracts hackers like flies to honey is bitcoin has the problem i mean it's really hard to store your bitcoin securely it is a really hard problem that has not been solved some of the best solutions involved specialized hardware the that you keep on your wrist some some of the solutions involve opening up a laptop and taking out the wifey circuits making sure it cannot ever connect to the internet as o.b. infiltrate from the outside this is hard today but it is going to become usable these are really hard problems and everybody in this community knows that whomever

solves it first is going to become really rich as an insanely rich and so. there is a lot of money being thrown out that's a good incentive to sick to big business but you know what it's not just the hackers that have a problem there was a famous case of the wire at error for getting the pin code from his big con wallet and using hackers and it won a hypnotist to retrieve it. i know it sounds funny but isn't it a little harsh on people and how can it so is it to lose access to something oh it can happen to my wallet or bank account. it's absolutely can happen to your bank account i ask the people in cyprus when their bank accounts were when they bank savings were confiscated to bail out the government the government's bank. and the people in say argentina or for that matter any person in south america how safe

their bank holdings are they're not they're just not ok maybe it wasn't a good example but the whole bank business is still really tied to whatever crisis is going in the country but you're saying that about age of bitcoin is that it is not tied to anything that's going around it in the world right so how come it's so easy to access to it something that your own just like you know getting a pin code just by forgetting a pin code. it is it is data it is data if you can think of it as a file if you like if that file gets into somebody else's hands then you lose your money if the harddrive with that file on it gets destroyed or corrupted or just dies then you lose your money which is why this problem is so hard. which is also why a lot of people are working on it but bitcoin and the currencies are just in their infancy this problem is be going to get solved just like every single technical

problem before it that had so much promise but had usability we were there was streaming video before for ten years before you tube it in twenty zero six we were there with blogging for ten years before word press and type had hit we were there for about ten years with file sharing before napster it in one thousand nine hundred nine these things take about ten years before somebody hits the right usability key remember this is a technology that was devised and twenty nine it's possible that if you were looking at a possible mainstream breakthrough around twenty nineteen ten years from then. the company founding the company who makes this breakthrough has not even been founded yet. great for all the talk of being an internet freedom banner but can't isn't entirely independent for instance the web mention the sea where the us police has recently sees accounts of its clients and arrested one of its founders so pressure

can be put on cryptocurrency camry absolute lot to heel they can be it can be it can be you cannot point a gun at a computer to get to make it give up its secrets but you can point a gun at the computer's owner and make them very sorry for not giving up that file inside the computer but this. difference that might seem very small has profound effects because it means that governments can no longer just walk in and seize money to pay people's taxes people have to actually agree with paying taxes and that in itself is going to be profound when governments realize this. rhetoric thank you very much for this interesting insight for this interview or talking to rick. c.e.o.

of big call in cash founder of this what pirate party and cryptocurrency evangelist is causing big current in the future of finance that's it for this edition of.

last time we chased. each one of them carrying twenty kilos of drugs. pushed a fence. they just step. through we have made no money. they have. this is for. me. i don't know. i will bring. now. this is my love hate relationship with the united kingdom. and the love it because

it's shambolic and fraudulent. and but he got to hate it because thousands tens of thousands of people had their lives destroyed by r.b.s. . is a. secret indeed priests accused of sexually abusing children can get away with it literally like to call this to do graphic solution so what the bishop needs to do then he finds out that the priest is a perpetrator is simply moved to a different spot were the. highest ranks of the catholic church will conceal the accused priests from the police and justice system to that end i know that's not going to see i intend to include at tuesday's out in.

the street. russia views the tightening of u.s. sanctions as the breakout of an economic war after washington announces new penalties are for the poisoning of double agents. and his daughter. the us democratic party wants facebook to share data on users who's fallen for fake news so we can tell them what's right social networks are already being accused of censorship or banning controversial show host alex jones. also this hour disturbing video emerges from yemen leaving communitarian groups and the public stunned with the appalling saudi coalition air strike on a school bus in yemen great claimed the lives of twenty nine children with thirty more injured. and the legacy of terror we hear from pham.