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to the moon does not need any permission to talk about decline and we are going to talk about this permission list nature of bitcoin from twenty eleven this is when we saw it coined beginning to really attract more and more people the very first bitcoin conference was actually in new york city in august of two thousand and eleven the first international the first year a p n one was in november twenty fifth two thousand and eleven in prague hosted by amir takai and of course you spoke i attended. when we first went to the first big conference in the world it was a group of about forty fifty people and i'd say half of them were incredibly intelligent computer scientists that didn't know how to share their ideas and

very passionate activists that believe that a financial system could exist outside of the traditional financial system was an important thing to bring to the world at that time it was very uncertain and very unclear whether big queen would succeed fast forward another decade or just under a decade where we are now. and we've seen the wherever i go in the world people have at least heard of because. that was not the case along not so long ago that's right the word is out and these conferences are starting to bloom and people are getting the ideas in their head about what this is all about in june two thousand and eleven the price of bitcoin hit thirty two dollars and then fell to. two dollars by november of two thousand and eleven that is a fall of ninety four percent it wasn't so much about price at that point because it was still magical internet money the reason that

a lot of early adopters got in was not because we thought the we were going to get rich as a result of speculating on the prize but rather i wanted to store my value in a system that existed outside of governments and banks it was like well this is the only logical option you know it's not about what the buying power of it is going to be over the next few years it was really more about well i know the buying power of my field is going to continue going down due to the monetary policies whereas i look at the monetary policy of bitcoin and this is something that is a lot more appealing so when we talk about permission less i want to talk about another area of the online world which was the world wide web the internet how that developed and how that was also permission list and the same sort of players involved including the cypherpunks and john perry barlow so tim berners lee created the world wide web h.t.t.p.

and that was a protocol he invented which went on top of t.c.p. ip which was the internet at that time you needed command lines to access the internet and in fact i think somebody like richard stallman still accesses the internet using the old system of of just command lines so nobody needed permission you just developed and one of the things that happened in the early internet days was in one thousand nine hundred six there was a telecommunications act which was announced which started you know the u.s. government started to interfere in how the internet developed. what happened to the internet and then i heard in one nine hundred ninety five at an internet conference of the scene of the internet it was kind of like the greatest thing says. upping acid you yourself was a lyricist for the grateful dead and there was this big love in in the mid ninety's that the internet was going to bring back freedom but now everything's encrypted

everything is being surveyed there and has been trashed by centralized governments and the corporations behind them what happened to the internet john. each area juristic understatement max. no i don't think that i think the internet actually is doing just fine i think that there is to be a mexican standoff between the forces of liberation of the forces of surveillance and control. the internet is very powerful. force field inside of human affairs and even as it allows many people that you never had a voice in the past to speak. there's never been a better surveillance to so i mean we can expect this back and forth it was john perry barlow who wrote a declaration of the independence of cyberspace governments of the industrial world you weary giants of flesh and steel i come from cyberspace the new home of mind on

behalf of the future i ask you of the past to leave us alone you are not welcome among us you have no sovereignty where we gather and he went on to write about the natural law and the social contract that we are the ones where on line we are from cyberspace and we're writing our own social contracts we don't want you imposing your human contracts your human laws upon us we are following natural law. one know without the great things that the does he have made was that he created that there truly free market that is guided by the nature's laws that we just the laws of physics as of the combining is governed by thermodynamics and all without what i mean it's the science base going to understand that this is a break between energy and the temperature and how to effectively use them so the mining is governed by that nature isn't all and also that mining is based on the

understanding of hope human nature that we are greedy we are selfish but at the same time we are capable of out to him we are capable. of course upgrading was about number one then that's. understood they studied the old. flu six and tried that to create a perfect market from the state and also a bit of opponent understanding of human nature so what we have is a man made laws and we have seen that the man made laws are very weak it's a bit of a corruptible because we ourselves as humans you know. that we do these part of our human nature so there's no way to actually account for that. part of ourselves so then we have come to the big point because the big going. with the nature of this law over to our incorruptible soul that this is that way and then this does not have to be there and this does not have external so to be it's. back to ourselves

because the nature of already our guiding us so why do we seek i mean why do we seek also to be outside we have to simply realize that the law is already here. surrendered to the authority already have exactly you've just surrendered to nature that you are a self solver an individual you can have all the power you need inside you except you don't need a president to bail you out. same thing exactly and it's a hard one to hard to want to get out more you know and to understand because we were so conditioned to see it for the nation we're so conditioned to look for and we have these laws and you know all of those situations outside so it's harder for us to recognize that we have this laws of nature and the center to them she chose to be. an anonymous person i believe because it is important for you permission list system to not somebody who rules it or who has

to will go toward you over and. carries on when how. news because when people think be queen is early adopters of any technology including the internet are often porn and drugs so there was that very early on adopters of porn and drugs in the big space twenty eleven silk road is founded and it's an online marketplace for anything right while porn and drugs of course are always part of the technological adoption cycle particularly porn we see in this over and over again it i would posit going back to the story of adam and eve was a was a story that got people to buy the bible and you know this is really unavoidable and part of the human condition and we saw it with the bitcoin adoption as well remember the queen is permission was anybody can access it and one thing about

having responsibility for yourself individual economic sovereignty is not easy you can get wrecked and in two thousand and twelve we saw the wreckage of south tom this is the collapse of big queen and may eleventh two thousand and twelve. hacked. is the when you give a party you'll be a coin like an exchange and there was an exchange. and when you give you'll be going to an exchange you and they own the big coin they can spend the big queen as they wish and they could say that there's more big queen than there actually is everybody lost their big car and they got wrecked and erupted all these sort of angry trolls trolls like laughing i'm mocking and don't get out tang and i get wrecked by going ten x. leverage by putting your coins on an exchange not your keys not your coins you know

if you're on an exchange you don't own those coins so here is the here as a. huge lesson in individual economic sovereignty. has become the wild west of finance with the proliferation of websites offering loosely regulated replicas of the services familiar to those in the financial industry perhaps the most notorious is. a platform offering margin trading short selling and stop orders run by a seventeen year old chinese high school student xu tong users can leverage their bets up to a ratio of ten to one on bitcoin meaning they can lose more than their initial investment so to be tong just to be wiped out financially and we're going to turn now to a little new hip song a rap song based on. that

is you know so this is a tongue to this whole wild west without regulation meaning that in our western system now the regulators have been hijacked by the j.p. morgans the goldman sachs's of the world so would you rather be tong or would you rather be jamie diamond or the lloyd blankfein right now regulation means no insurance so there's no f.d.i.c there's no backup insurance there's no one to bail you out definitely not in two thousand and twelve so this is a lesson that folks had to learn and they had to learn it over and over and over again. it's kind of like. this space when it's a free market i look at it like a gas stove when you're raising a child your kid can go to the stove and burn his or her hand and when he or she

burns his hand or her hand they're never going to burn it again and you can't really teach that lesson you can't teach that lesson a kid when you put your hand out here is. burn is going to hurt don't do it here she's going to put their head in there and never doing it again we need more of that to happen in the space and at a faster rate and we don't really need government intervention there we just need people to lose lots of money and freak out and get each other it's called getting wrecked you've got to get back to get it right it's the best teacher in the world when you get wrecked have ever been wrecked. nuked a few hard drives in the early early days made some vanity big going addresses that ended up being hacked by old employees. into thin air by sending it to the wrong address before address verification was a thing i would say not a heaping majority of knock on wood never had to go through a big scam mostly due to my own laziness didn't get involved because the wall was

kind of a pain in the to set up. so i've been fortunate in the fact that setting up exchange channels and such a been too lazy to do and it serves me well so people say being lazy never serves you well they're wrong period so there you go. so what we've got to do is identify the threats that we have it's crazy. let it be an arms race. feeling dramatic to follow only. that strategy will be successful very creative. usage. in. the international memorial awards twenty nine now open for entries the media

professionals whether you are a freelance journalist what's real terms of media or part of a global news. focus of my son the show published works in video rich and. go to award dot altie dot com and into now.

so not only did we just have a financial collapse from june two thousand and eleven to november two thousand and eleven big queen prices crashed by ninety four percent very similar to what happened in two thousand and eight even more dramatic in the financial markets then we had the failure of a major exchange and people's big coins were hacked stolen they got racked there was no central bank to appeal to there were no groups of elite to meet in doubt and say oh we're going to rescue these people and save them from this horrible hack it was just you got out tongues you gambled with their own coins you put them on an exchange you no longer own your big and you got wrecked and ha ha you know what's the with the troll. yeah well that's exactly right so there is a responsibility that comes with sovereignty and self sovereignty and the protocol itself was not an act there was the exchange the host and their wallets and the

coins that i got hacked so that's an important point to keep in mind it was a very volatile time for a bit coin certainly for the prices you interviewed andreas on topless and he mentioned the shallow pool of volatility. right under as many if bitcoin can survive the government crackdown but you ask well central banks and nation states survive because in your thoughts. yeah well i mean we've already seen a bounce back from the latest regulatory snafu you know bitcoin is this is a shallow pool of volatility and every time someone sneezes all of the volatility sloshes around a bit but at the end of the day you know this is a technology it's an invention and you can't an inventor this incredible in french and that allows consensus on the street but it networking allows people to move around me internet q e three started in. of twenty twelve

again big queen is thriving it's growing it's becoming more anti-fragile it's already survived a ninety four percent crash it's already survived the collapse of big queen ika it already survived a major hack hundreds of thousands of bitcoin stolen it's already survived all that is becoming more robust and people still come they are still drawn to big coin the next bitcoin conference is september two thousand and twelve in london you spoke there believes you grow out of the current debt crisis will never exist there. there's only one solution now that's true to me for printing my this is going to be the defacto basis of what used to come in this currency war because there you have a race to the law all these deliveries are going to be frank you just make sure turns you can see each other especially for the front row the way out of prices by more. so this is this is this is what's happening here this is the context in which

big coin has emerged and why it's such a valuable piece in this in this war what's going on and why i call it because we on the contrary porsha weak on her fighting the financial war as we call it so q e three starts in september two thousand and twelve by now the markets are recovering their soaring financial markets are up dow jones is up so s. and p. five hundred is up footsie is up all the markets in the world everything is is great or is it because here we have yet another intervention yet more hundreds of trillions of dollars we ended two e two with the two trillion dollar balance sheet on the u.s. federal reserve's balance sheet it will go to four trillion under q e three this begins in september two thousand and twelve in the meantime we've had bitcoin fall from thirty two dollars down to pennies this is a ninety four percent collapse that happened in. twenty eleven two thousand and twelve comes we have big queena hacked tens of thousands of bitcoin stolen we have

wreckage nobody has needed to intervene nobody was even able to intervene if it were possible there would have been people begging all those people who got us out onto got wrecked they would have begged anybody who had the authority to print them new coins that they had stolen and because they chose to give up their private keys to the exchange and then got hacked then got wrecked there won't be a big coin on verge of first bailout or exchange it didn't happen with mt gaga it didn't happen with anyone that's not how this works because big question is strictly limited in amount it is it is the hardest strictest soundest money that we've ever had where you can just create more of it this is the environment it would be queen is flourishing it's continuing to get stronger and stronger and stronger the money system the permissions walled garden of the central banking and their member banks system that's requiring more and more intervention more and more

changes and hard forks in their algorithms a printing money buying mortgage backed securities didn't work let's buy junk backed bonds and you know natural gas bonds and fracking bonds and less like buy all sorts of stuff right and cause a reporter was there telling people to keep the faith and i think that's probably the time at which we were instrumental in keeping that community together because there was a lot of distress in the community the prices have crashed and the exchanges were getting act you know but we were pointing this out that this competing against extraordinarily corrupt system out there of banks and quantitative easing and that this was going to triumph over those guys in the end. i max keiser time now to go to argentina and speak with jeweler did maister of macro trends. and author of the new paper the gloom of central banking to welcome to the kaiser report. it's nice to be with you i toured the european

central bank recently released a fifty five page report called virtual currencies games tell us about it tell us about the gloom behind the e.c.b. report well it's very interesting it got out last week and when you read it it's first seems to be just about you know it could be about any online competition for a for central banks or any other types of currencies but when you read into it there's a hundred and eighty three mentions of the coin and they also mention that they they wrote this reports because they got a lot of questions from the public in the past few months and i mean this has to be because of bitcoin so you know that of course there is the question why why would one of the most powerful financial institutions on the planet why would they bother writing a bit clinical as you could just as well see it as some kind of mathematical puzzle work by give each just send back and forth some bits and bytes over the internet so

why do they take this seriously and that caused me to to look back and find some other papers written by the b.a.'s the bank for international settlements in baseball and also look back at how they wrote about online competition in the past and there's reports in one thousand nine hundred six for example so to compare these two. impressions they give is really really interesting and it turns out that bitcoin for them is a totally different ball game and frankly they don't know very well how to deal with it one must always remember cypherpunks write code that's what they do they don't do fed speak they don't talk they don't try to convince you of anything they just do they write code and bit quaint just does it just is and it doesn't have to convince you of anything why can't i choose my monetary policy right and that's a big point gives you it again. we fix supply if it's supply using the

choice of oxy it is nobody forces me to use bequeathing i am forced to pay my taxes in canadian dollars so they force their value through how you paid in because there is nobody foresee anybody does voluntary system is fascinating that choice and our us to do for the first time for each person to decide to be aligned with the nature of the law make a decision to live accordance to our way of living and that onerous nature and nature's laws so this battle is out there it's waiting on and it's going to be intensified and want to make sure that that destroys the in form of the one so that each person make an informed decision i've still what kind of a future some good ideas and we want to be a part of and how we want to use this technology at that september two thousand and

twelve london conference we talked to frank braun who was a privacy activist or as they would say in your previous e activist this was the beginning of the clash of the various groups because bitcoin is permission less anybody can participate whether it's bankers or privacy activists from germany you know who's wearing a mask africa's cypherpunks everybody's now involved you did see the beginning of corporate interest in bit coy and the venture capital community started to take interest and their agenda is different than a cypherpunk agenda so it did splinter the community there were five times there were people that were. really actively enraged that the banker types who were kind of like curious on now about what was happening the big client base and conversely the bankers were aghast that they had to share a stage with someone like for. bryana privacy extreme privacy advocate frank braun

was a privacy extremist who he called himself so he he's unwilling to basically negotiate his privacy and hill let you see his face if if if he agrees to it i guess that's why he was wearing a surgical mask while we are entering going am on the kaiser report. all right frank first i'm sure the audience will want to know why the mass. privacy is necessary for liberty and. try this is not granted it needs to be taken therefore in times of extreme surveillance assume we need extreme contemn of those for example their cameras to know everywhere they can identify you personally and took all of whom movements that's why i became a pro-choice extremists and very mosque and public clearly frank ron the surveillance state is here hence your face mask but what about the security of any online transaction going forward including big calling so i guess this is kind of

a follow up question to what we've been talking about in terms of what can people give a few techniques for mention that because i'm twenty twelve but what are some of the basic things people should be considering now that we've entered this permanent police state surveillance state you have two areas and which you have to improve the first one is digital security and second one is trade for digital security means everything like you should in truth to e-mail you should include your heart or she should learn how to use internet anonymous those bankers coming into the system no matter what they want they can't get rid of the fact that it's the hackers it's the dangerous guy it's the privacy extremists that are a core to maintaining it quite yet that was a clash of cultures because on one hand you had. the corporations and they thrive

on organization and of course because it's all about de centralization bordering on anarchy so they came together and the sparks float and we set up for in subsequent chapters you'll see how that plays out. seemed wrong. wrong just don't hold. me. to shape our. outlook. and engagement equals betrayal.

when so many find themselves worlds apart we choose to look for common ground. like you did down the. road news on t.v. forty one people were killed off for a plane bursts into flames you're right about the landing in moscow there were seventy eight passengers on crew on board the russian president prime minister expressed condolences to the families of the victims thirty seven supply because most of the food are injured.