but here you are on a chopper told me it's like what we think you kept you in point back then it was introduced as this. better kind of p.p.l. thing that you could use to send these nerd money tokens around what was i thinking of the beginning was nerd money at washoe and that's literally and even at the beginning after a kind of got into a twenty twentieth's well i didn't even know if it was legal because the constitution states you can't make your own money so for a long time i didn't tell anybody my parents didn't even know my wife is doing some weird stuff with computers outside of the normal words. so for a long time until the first supreme court hearing the first time and only time i've ever watch c.-span. it was super low key i don't know what we're doing this isn't drugs but it also might not be so two thousand and ten is the year that because one is able to actually have users march seventeenth two thousand and ten the first big

coin exchange opens it's called big clean market dot com oh yeah well this is now all the machinations of markets and finance creeping into the bitcoin space markets have been around for a while now we had a big coin market so people are familiar with the attributes of markets and economy and they just brought them into the big going space and by being there in the big point space they could then adopt greater users and we see this pattern repeating over and over again anything that's ever been tried in economics and finance would be brought into the big going to space remember we discussed in two thousand and ten was the first bitcoin transaction between soto she nakamoto and how thingy that happened on january twelfth two thousand and nine may twenty second two thousand and ten ten thousand b t c spent on pizza the first real world transaction using big points takes place when a jacksonville florida programmer laszlo can you offers to pay ten thousand. big

points for pizza on the bitcoin forum at the time the exchange rate put the purchase price for the pizza at around twenty five dollars right well again to use an analogy from war you know this is the shot heard around the world this is now big coin entering into commerce it's now at the cash register it's now people buying stuff it's now got a real word application to lie eleventh two thousand and ten slash dot wrote about the upgrade to version three of the bitcoin client this was one of the early internet outlets for the sort of hacker community beyond four chan four chan is more of the troll hacker side of the internet slashdot is the code writers the programmers the tech nerds the geeks that went there to find information so here is slashdot focuses on the upgrade to the client version three of the bitcoin protocol all these hackers all these coders all these programmers all these geeks see it and

say what is big quine go over to bitcoin and the price just by them looking at it it goes up nine hundred percent from eight tenths of a penny to eight cents at that time and bitcoins history it was still considered a novelty and people looked suspiciously at it and they were afraid to use it because they didn't want the label of being a freak and a geek of course already well into their freak doing or happy to give it a seal of approval and cover it and this was the beginning kind of internet phase whatever number you want to put on it but another kind of explosion technology driven that was giving birth thanks to the hackers and cypherpunks and quasi alchemy that had done so much so far to change the world as we know it a friend sent the article in slashdot into a meeting and for me to read code you know this is because no way this thing's ever going to work and then went to look at the cold be that you just knew there is no way. took me at least

a year to sort of go back and forth and appreciate and see that actually worked i mean you know the u.s. redo of bugs like anything that's new software wise right it's a very hard problem it was so hard to coronation problem that there was a very clever little trick i can remember who made it but we use the i or c. channel four nodes to find themselves there was no there wasn't enough nodes in a network in know people were mining on their laptops and then people were my new video cards i remember this. this guy who you know almost burned his house down because his laptop was running over and i it was it was different i mean. i think we were a lot more focus on. trying to really understand why because it was because he made no sense you know honestly i mean i'm not a friend in show god i even know. i couldn't really grosse what was

happening there until you know for me clicked you know where you know this is a new asset class this is a whole complete new fing that's based in nothing else is not a derivative of anything else. i don't think we're tempted anything like this before it's it was a fascinating experiment so more users are being drawn into bitcoin but was so toshi perfect was the code perfect now there were many many flaws in the code of bitcoin august fifteenth two thousand and ten exploit generates one hundred eighty four billion bitcoins so this is known as the value overflow incident that was block number seven four six three eight and it came contained a transaction that created one hundred eighty four billion victorians a new version of the client was published within five hours of this is that

contained a soft forking changing to the consensus rules that rejected output value overflow transactions greater than twenty one million. three inch four were making an iteration to be more secure so from a security perspective i'm ok with more interation is being made we're going to continue to find more bugs i think the guy was obviously very intelligent very small but he wasn't. skilled programmer so the the code the hero was for a kludge was for a messy. but. by was functioning and he made some good decisions about how it works but then some of the things were is a bit is very strange and the kind of life things we have to live with inside of bitcoin right it's a misnomer to think that because most births perfect in a perfect state of being it's being actively developed from day one as we see right

here in this active development of this particular exploit and this has been going on sence day one the fundamental foundation of it the balancing of incentives and the architecture has maintained all assaults on it and it is a foundation upon which you can build on top of it but does require constant development and feed in care of the protocol there were mistakes at least in the code and some of the shell design the thing that i suppose she got right was the monetary policy because it is fixed and it is permanent and it is not going to be changed anytime soon without the consent of everyone on the network so that's the thing suppose she got right september twenty ninth two thousand and ten another exploit discovered so it genuinely appears that suppose she was not perfect that his creation was not divine and immaculate there were many flaws in it the

community of code writers the community of bitcoin core contributors fixed it in this case it was discovered by a guy going by the name of kermit and it resulted in a new version of the big queen client which then fix this micro transaction problem right so at this time because it is still very much software experiment and the price is immaterial it's a novelty the idea of it price going as we know into the tens of thousands of dollars was not in anyone's thought process at the time and they still you know wanted too. fix the architecture in a way that would be sustainable you know during the renaissance in europe you know the idea of the self-sustaining dome that we saw built in that period was an architectural triumph and after many failed attempts there was finally the ability to do so and that then became the standard by which modern architecture referenced

so here you have this ability again scarce digital value that to double spend problem solved and so we knew they knew that it was possible and now it's just a matter of starting to make it more reliable so the reliability factor had to be addressed so it was may twenty second two thousand and ten that you were able to trade ten thousand bitcoin for a pizza that in the game theory attracted the attention of people who trade o.t.c. who do short sales who create futures contracts market participants they then had an exchange value they could start thinking about derivatives about short sales about all sorts of market concepts and of course by october twenty eighth two thousand and ten just a few short months after ten thousand bitcoin was tradable against one pizza the first ever short sale facilitated by. o.t.c. and i.r.c.

channels the first recorded short sale of big queens is initiated in the form of one hundred big queen loan from nanotube to kiba. well market makers and finance areas will always welcome any opportunity to engage in a market on both the long side and the short side so when you start posting prices of something a commodity in this case the digital commodity rare are scarce digital commodity infinite lee scalable but finite in there of asian there are going to try to make a short sale and see where that goes so this is attracting the financier class on top of the technology class on top of the monetary theory class all these people exist together in this protocol.

even. as i live the here. you need. we have many things in this world this isn't enough for everyone and why some peoples must take our things all the power just for damn self.

they can come and blow our brains out at any given time we can't really do anything actually america is the only country in the world where you can kill people. war and legally get away with. all the fire crawls still. all the troubled history failed to point its hollow flying to k.k.k. exists because america wants it to exist they are the biggest terrorist group to ever operate in this country and they're dead to me they're worse all the people who destroyed the world trade centers of the scroll why.

the neat politically false needs to come. from. but ideally. been. giving political guidance to the process so basically what i'm waiting for he's an author of politically false ideas and stemming from the moment he feels. so so we're talking about the oh gee years and two thousand and ten not only did we have the first short sell but we also had big queen's very first obituary

fifteenth of december twenty ten why because one can't be a currency the underground economist wrote and it was that twenty three cents them sure every every major piece of technology that comes around the changes everything is this there to be unworkable and go to die soon i mean we've seen this time and time again it's not surprising that the press would look at it and say this can't possibly work and this is to be expected and they of course were wrong it becomes anti-fragile how do we all agree on one specific version of this history of transactions and also how do we all agree on a certain cell of rules about how we're going to govern our money and it's difficult to get people to agree on that because everybody wants a screech other over right nobody is honest we always have to assume that every participant is going to find a way to attack us or to get some advantage over us and normally to solve this

problem what we did is we build governments and we build centralized authorities to solve this coronation problem so the game theory is kind of like the rule sets and just the incentive structure that gets everybody to agree because if someone tries to cheat the system he will be penalized in a way so. it's kind of like the driving force that keeps the everybody in check and we arrive at an equilibrium where everybody is kind of happy with the rules of everybody's happy that that transaction history set is this and it can be modified and that happens organically spontaneously and it doesn't come from anybody it's not a top down. game theory is kind of like the natural selection you know next selection is is a phenomenon which brings to an equilibrium and the game theory of decline is what kind of keeps us all in check and get this consensus rolling so let's look at the environment in which big queen is evolving just

a few weeks after ending q e one just six hundred billion dollars printed for them the world economic forum davus happens in january two thousand and eleven and here is the headline max world needs one hundred trillion dollars more credit says world economic forum on kaiser report we covered that on kaiser report we were also contacted that same month by john meton us who was a very early adopter of bitcoin and he said to me stacy i would like to come on in europe and i would like to come in to your studio in paris and discuss this thing called big coin. course this is paris max and it is here where our personal big queen journey began that's right a little bit of big oil history max the stacy first learned about bitcoin right behind this store on the sixth floor well max you can't really go to the moon

without lift off and lift off for us happened right here in this studio where you interviewed for the may thirty first two thousand and eleven episode number one five one the gulag casino state you interviewed john meton s. about that point yeah i love this episode it really see us in a raw beginnings of the show and the story of bitcoin and john the tonus i thought was brilliant and explain to us what it was all about. welcome back to the kaiser report time now to turn to economist john mcdonough so what is bitcoin the very basic level big coin is a peer. peer distributed electronic currency when you lose bitcoins they're destroyed you can't get them back and just like when you burn a dollar bill that hundred dollar bill is gone from the system so that's what makes these so unique and different is that it's not just a counterpart to trade like with pay pal it's

a digital better token that you can actually send to someone over the internet and we haven't had that before on the internet which is a lot of what a lot of people miss this clearly this is a challenge to the status quo so but you're taking on the establishment in this way so clearly they're going to feel threatened at some point or do they feel threatened or is there going to be a confrontation of some sort or a how do you approach that i don't think that bitcoin is large enough right now to be on the radar of many governments the entire economy is approximately fifty million dollars if you take the total number of bitcoins outstanding multiplied by the exchange rate it's fifty million dollars and it used to just be five million small time ago i can see it growing exponentially and it definitely challenges the status quo. this is just after hearing this super elite only invited people who go to down. all the central bankers treasury secretaries c.e.o.

is the largest banks in the world who had destroyed the global economy and the global financial system meet up and down an order to conspire together as a group that we will issue one hundred trillion dollars more credit the destroying your own individual economic sovereignty because they themselves are the divine right of makers who is because becoming is all about because it's all about you that's who to stay used to stick in honesty and because it's all about us because because governed by the nature of the thoughts and if you look around nature how the nature to work even though it's in business. all and we can all perhaps see it every day but has it only way to pork twenty four seventh's. seventy four hours seven days a week in never stops to work and then they choose it all a pick up all to everyone on this planet no one is able to go about the law of

gravity for instance and nobody can ever have heard this nature that oh they try but they will never be able to make it possible for santa and they were right in the morning we see you standing in the morning writing and we see it sunset in determining and because it's. basically the embodiment of this nature is that all for the first time in human history we now have this nature and nature has it all been manifested in the world that actually get on peace our leave at the end of the awful lot of people and that is a prequel to everyone who choose to use it i'm a big believer in free market capitalism i'm a big believer in adam smith's theory of the ability for a person to pursue his or her happiness and individual passions and i think bitcoin at its core. was the first time that i read that technological ability for us to mass spread the philosophy that i want worldwide that each

individual should be able to pursue his or her freedoms to the fullest and the biggest freedom. that big brings to light that we need to have more of is economic the economics of energy and to be our own banks being your own bank is much more of a powerful phrase when you don't have a back pocket with a wallet with four credit cards and three debit cards and you're an american citizen it's a lot different if you're in the sub continent of africa or south america or most of asia where a lot of people don't have a bank account and they don't have economic freedom they don't. of serenity and. those of the emotional and philosophical things that got us into becoming the goddess to dedicate day in day out to be coined to try to bring community together just having more eyes look at it more attention given to bitcoin is like feeding it

nourishing it watering at its starting to flourish every single time it was slashed in two thousand and ten that looked upon bitcoin and their audience therefore did and it blossomed nine hundred percent in one day here we have the same thing four hundred percent increase when we looked at it then it went up to seventeen dollars and then it crashed so another bit coin obituary to more sell and forbes says so that's the end of big coin then part of the beauty of the coin protocol is the censorship resistant aspect to it and as a journalist at the time we were drawn to it not only because we were covering gold at the time as a way to restore sovereignty individual sovereignty to individuals by being hard money on your on your own account but that you could have that while simultaneously having a store of value that was on confiscated ball and that is becoming increasingly

more important as the story goes forward so all that was kind of baked into the cake at the time the power of big queen was demonstrated in the comments on the you tube upload of our first episode talking about bitcoin people were so against it like so aggressively against it it really drew my attention more to researching between to find out what this was and one of the other. of bitcoin is a meritocracy who then we interviewed next about bitcoin and that was in july of two thousand and eleven and here was a guy who wasn't very very early code contributor to big. he was also the inventor of the first big quake improvement proposal won so here is a guy who was the go to he was also the only go to person for a b.b.c. or any news organization that did cover because at that time basically you had to

talk to a mirror. here welcome to the kaiser report very good to be on the show mike's and i must say that your show is one the first to start reporting on a client and you know she gave a very very informative coverage of it compared to the later sensationalist news off to walk us through it what is bitcoin why does it ignite such passion they should the is the first decentralized currency online that is. the thing is is because nobody owns a network there is no concept of control nobody can tell people how big is used because if you think about it is actually you are a willing participant in this network the current financial system is i don't want to use the monks or i don't want to use my money into field money i have no choice if i want to do business in the world but something like

a big coin the whole concept is and now i have my money on my computer and i can choose who to trust exactly and he personifies bitcoin is the spirit of it going and he also i think is someone who were part of that early generation who have what i call the pinwheels in the eyes where they're so blown away by what this technology can offer humans and the experience of being human that it is like it goes back to permeate the s. and the passing of fire you know it's just totally changes the relationship between power and those who have to deal with power and are the beneficiaries or the. an organizing subjects' of power so it changes the playing field completely you know it's like walking into a billiard parlor and just it's getting on to the table and all the balls are now flowing in your direction and the other side can't do anything about it so this is the end of episode two because we are now entering the next phase of quantitative

easing we're already seeing the banks wanting a hundred trillion dollars more in credit we see the global financial situation and which big coin is emerging we have those. and then from august of two thousand and eleven begins the conferences more and more people ordinary people not just the hackers not just the geeks not just the code writers not just the programmers not just those people are involved in big point now it's ordinary people whether they're builders. or dentists or doctors or lawyers or housewives there is a conference to go to to attend to hear speakers to listen to what bitcoin is about and this is where we turn to in the next episode.

to. be neat politically. needs to come. from. but ideally dillman before. giving political guidance to the process and so basically what i'm waiting for he's an author politically. ideally stemming from the moment he feels. they can come and blow our brains out at any given time and we can't really do anything actually america is the only country in the world where you can kill

people out war and legally get away with. all the fire crawls still. all the trouble to the point it's hollow flying to k.k.k. exists because america wants it to exist they are the biggest terrorist group to ever operate in this country and they're dead to me they're worse all the people who destroyed the world trade centers are those girls wife. facebook and google started with a great idea and great ideals unfortunately it was also a very dark side. they are constructing a profile of you and that profile is real it's detailed and it never goes away turns out that google is manipulating your opinions from the very first character

that you type into the search bar it will always favor one dog food over another one comparative shopping service over another and one candidate over another they can suppress certain types of results diced on what they think you should be seeing if they have this kind of power then democracy is an illusion the free and fair election doesn't exist the more we give them the sooner we are all. it's. an open.

source showed the way to first have a summit between lithium opposed to the north korea's kim jong. il relations and looks to removing nuclear capabilities from the korean peninsula. russian national grid buton is jailed in the us but failing to register as a foreign agent but a lawyer says she's a victim of the current. climate in washington. maria's activities in the us were illegal. in and of themselves but she got caught up in this and she rushes. and saudi arabia comes under fire from the un and human rights organizations for a mass execution with concerns that the charges against the thirty seven mostly.