2011 why has big coin failed it has failed because the community has failed what was meant to be a new decentralized form of money that lacked systematically important institutions and too big to fail has become something even worse a system completely controlled by just a handful of people were still the network is on the brink of technical collapse the mechanisms that should have prevented this outcome have broken down and as a result there's no longer much reason to think can actually be better than the existing financial system right well i think this could be the beginning actually of the same aim of rage quit what would make jimmy reach would be a coin if it became centralized then it wouldn't be an interesting project or busy maybe ridge where big corn jamie diamond could somehow co-opt the entire chain i would balance quicker than anything you'd ever see. welcome

to the kaiser report i'm max kaiser why in a rage quitting that's a new and whiny rage quitting that's brand cohen creator bit torrent describe my current hissy fit upon quitting as a developer of bitcoin to join up with the private blog chain being created by the 40 biggest banks on earth. yeah the guy's a traitor and he's a rage quitter and stacey what's a big queen believe crisis of faith here is the article about my current quitting as a core developer of bitcoin and you know it says straight away that he's so furious with this big coin what's going on there that he's took a new job at a new start up 2nd to last paragraph before they tell you it's or 3 i was reading the article thinking like he was joining a new innovative start of something more exciting and then you get are 3 my god

that's like the big j.p. morgan write. about really a little bit about arthritis on addiction right before all 3 and now blocked chain and what they're doing to be innovative they took mike. they hired him they offered him oversee a very competitive package compared to what he could get. but that's my guess. and right before he left he puts a blog out there saying has failed it's over now the real story is transaction volume is going higher than ever there was a conference call skating big going and all the miners all the developers got together you were there together i was there and they put together incredible solutions with some of the greatest minds and togaf in the world yeah of how they're going to scale because we're now a phase where this is really big but my current wasn't there he didn't attend. he had tried the queen x. he wanted bigger block size because remember we enter 2016 with all the banks

entering this space as block chain not big queen and there are some people in the big clean community like mike hearn who was a big quinn court developer for 5 years at this point that wanted to compete with visa master card pay pal j.p. morgan goldman sachs they wanted to compete with that and there was a big debate raging about block size. the block size is a security parameter in that quine it constrains some of the throughput of the network but all of this has to do with the consensus rules and so there's a whole bunch at stake when you try to change something like that basically there will so group of people that they were thinking they would want to scale bitcoin increasing the block size so that they could we could actually run more transactions per 2nd the problem is that randomly changing the block size without

fixing and improving the underlying technology actually doesn't scale very well and the main problem is that the story in computer industry is obviously getting cheaper so the size is not such a problem well the problem is the distribution of the blogs where you have job graphics where. you just don't want to have like ico by blogs because that would cause they clayton see some big problems on the network on the one side it was people advocating for a hard fork and that forced upgrade of everybody on the network in order to increase transaction capacity. and transaction capacity matters for method of payment but not so much for storage. so for those people method of payment was important enough that they would be willing

to force an upgrade to everybody on the network and of course you can't force an upgrade on every one on the network because it's the centralized if you could do that then it would by definition be centralized so in a sense it was you know giving up the baby in order to keep the bathwater it was trying to. you know get this new feature but throw away what makes it really interesting which is that it's essential as digital seer city that if you want a fast and cheap then you have to centralize the system because centralized system are fast and cheap but they are fragile politically speaking well of this into a system are very unsafe politically speaking but the usual is low and expensive because they're decentralized so when people started to realize that there were magically to there was there were a fraction user there wonder started to study and the stan i mean painfully

understand the tradeoffs and understand that not not everything was easy and somebody would just attributed the tradeoffs to some kind of conspiracy like. our choices in life don't exist because of technical reason but because because somebody some every conspiracy is creating an artificial. choice to make just in order to to her doesn't for some secret agenda i think a block size war was mostly a by. people not trusting in bitcoins consensus and wanting to pursue their own agenda of what they thought because it was it was the mentality of well i know better and if the majority of the people don't believe me than i have to make them or i will show them.

and to me the block size war was about the control of the underlying protocol by people that thought they knew better. for me it became very interesting because i interacted personally with roger there and jihan and a lot of these other players and i even warned them like you don't want to do this you know probably lose a lot of money like if we have war between these block chains well we just saw the bit man laid off over 90 percent of their staff. the economics and the game theory they go behind big colin are really not that difficult to understand but if you want to bang your head against them you can lose a lot of money and so big question is just a brutal in allocating the gains and losses to people based on the personal responsibility that individuals take if you don't take personal responsibility and

hold your own private keys if you don't take personal responsibility and run your own form note you're going to get rest it's just a matter of time and if you think that your indispensable the bitcoin you're going to get wrecked too so toshi is a great example he left the project he hasn't come back he'd. is letting us determine what happens with this on our own he might even still be among us but he's not appealing to authority in so that's a very important lesson i think that we learned from the block size wars. is that even when you think that you matter or even when you have a bunch of people who you think that matter and you're all together you're still fighting a big uphill battle i mean we had 90 percent of the hash rate a bunch of the venture capital funded companies deciding to declare war on the

users of bitcoin and all of them got racked. like it shows the sheer economic substance of the hardware of last resort 2016 prices $437.00 a bit you were a number one of. the monogamous yahoo news. because . of its very number one of the 3 for forming the. it will be still called the sort of just anything can't remember you cannot control big queen it's not just one guy can control it not even a handful of guys not even a handful of billionaires can control big point it's the entire community it's the miners it's the know it's the users everybody has control of bitcoin and he can't convince them he can't persuade them to increase the block size yes you need to persuade people look back when protocol is

a masterpiece you know and you look at the mona lisa in the loop museum and you might be tempted to change the smile because you think you know what i could do better and you go try to change it but you know it's a masterpiece as it is there's no changing it it is what it is and no matter how strongly you feel about the aesthetic you are going to be rejected because the genius of the protocol was perfect. in the birth of it and so you can go against it you can rage against the machine and rage against it and quit and not needed in a quit i mean i think my current thought that he was essential in invaluable to the project that if he quit that this would somehow put kobashi on the project and very quickly it was figured out that no you know anyone can quit quit all you want doesn't matter this train this freight train of protocol is not going to stop.

genocide is justin. it's a very well done nowadays and you know to say we should have standardized testing to be like saying well we shouldn't have our blood pressure checked or or even our weight if you going to see the doctor those are standardized instruments and you need to be able to know how children are doing right from when they start school. for the project was good if you give up on your preferred like if you missed it or don't blame people but. none of them want the worst done so most people swoop in the door. give them a school says i should be a model which to me that's. just. still the no plus you you presume

this loop i'm going to you must feel a need i'm used to this and both of us don't yeah the main. quest in building an innings or history of cities to. go from there must. be to be as good as you move to you know what who are you more you would almost be . the whole truth i'm doing a. film. with you and someone who is the. star of the most. and also way us. after the previous stage of my career was over everyone wondered what i was going to do next. different clubs on one hand it is logical to sit in the home field where everything is familiar on the other i want to the new challenge and the fresh

perspective i'm used to surprising people and i saw one all to give you. i'm going to talk about football narvi or else you think i was going to the. by the way what is it that's lying here. so in 2016 we're seeing the block size wars unfold. and porton question to this is what is cash what does cash mean some in the community decide that cash means credit cards that you're competing with master card and visa because it is nowhere near being able to transact the 10s of thousands of transactions per 2nd visa cat then there are those who are had lawyers and they want

a store of value they want to hold something that is secure they want the block chain to be as secure as possible some people are willing to sacrifice security for more transactions per 2nd but this is a war in which we're finding out who all the players are that big queen has brought to the table people misinterpret the word cash and they think it's about big blocks and surprising that a bunch of guys sitting around trying to compare block size right it's a bit narcissistic and egocentric and my blocks bigger than your block but it turns out that that's the secret sauce that's not what makes it work and when you try to anyway your way into supremacy you get rejected by the consensus algorithm design yeah it's unfortunate what has happened to the meaning of the term cash particularly amongst some factions of the bitcoin well no longer in the corner well most of the time for the effects of the term cash historically refers to money that

is a bear the money that is nobody's liability if it does not depend on somebody paying off somebody else's debt in other words a check or a. any kind of bank notes contains with the element of risk of the bank issuing its might default and so therefore that's what distinguishes it from cash so that's why i really what the cash refers to is an instrument that doesn't have. money and that is accepted and so historically if you read the old austrian economists book the term cash refer to gold and gold and to be interchangeable the 1st problem in linguistically happened with the. started referring as well to government money . paper notes backed by gold they became referred to as well as cash and then when these notes stopped being backed by gold the notes themselves kept and kept the name cash even though they're not actually cash because they are essentially

just pieces of paper from issued from central bank they are contingent in their value upon the central bank maintaining their supply in some limit where as you know gold doesn't have that contingency because even if anybody wants to increase the supply of gold they just can't because it's very hard do it and now. according to many people in the formerly of the between space and the term cash refers to the money that you use for making your small purchases every day and so therefore for them when they hear the term bitcoin electronic cash in the white paper that means you know that means we have to go and use it to buy a coffee with it however if you understand the term cash as spoken in the 19th century when you know words had real meanings and money was gold it was made sense and the world was in order. back then the term cash referred to the gold which was

usually in bank vaults so it was an exemption you know it wasn't being used for the small payments the payments would be done with instruments that backed by physical gold so it's not about the small payment it's about the fact that it's a monetary assets that doesn't have any liability attached to it and doesn't require anybody else to perform a function write the white paper states explicitly that it's a peer to peer electronic cash and this i think gave rise to a lot of misinterpretation of the white paper because some thought that cash. payments and others looked at the history of the cypherpunks on the. history of the protocol and realize that cash meant anonymous value transfer as in gold you could just as easily say the white paper should read peer to peer electronic gold if you insert gold for the word cash in the white paper all questions are answered all disputes are resolved and we can move forward beyond the block size debate cash in

the instance of the white paper means gold coin it's just like when you're spending with cash on the markets you have the money and you're giving it out to the merchants whereas for example in credit cards just on them here's my critic or number and pull busy the money out of my account so you really just think as vic one as a as a cash transaction over the internet it's much more private and also it can be censored there's nobody in the middle of a cash transaction is just you and the person you're transacting with are involved right if you look at the history cypherpunks you understand what they thought about cash it means lack of counterparty risk in the context of cypherpunks it means a lack of having your money go through a regulator or a government this is the slow that they've been working to overcome throughout the entire history of cyberpunk and so calling for phil's cash as no counterparty risk no 3rd party trying to get into the mix because they want money to be free just

like they want speech to be free and because it is text and therefore it is speech and therefore it's guaranteed free speech. so my current has raged he's a bit quick or developer big queen is dead once again the block size worries are raging and miners know it operators users they're all debating whether or not to increase the block size whether or not to accept segregated witness who is right who is wrong and february 26th seen influential members of the big queen community met in hong kong to discuss a development plan is scheduled. queen scaling the closed door meeting included more than 30 people service providers and between core developers and was intended to address issues related to the block size discussion so this is the beginning of the emergence of a certain group of very powerful early adopters who are kind of wealthy at this

point and they feel they know best for bitcoin and this is the 1st of a few secret meetings or closed door meetings certainly they weren't necessarily secret but they were discussing what is best for a big coin the hong kong closed door meeting with 30 bigwigs in the big space is taken right out of adam smith in terms of his characterization that whenever you have markets and free markets you will have a cobol price fixers emerge and this is an attempt to fix prices to influence the block chain influence because in a way that satisfies the requirements of corporatists and when uplifts and it's completely against the ethos of big coin. just like my current they were rejected because not only is no individual key to the consensus of the no group of corporatists is key to the consensus other of them either. welcome back to the kaiser report on max kaiser we had scheduled

john tonus to come tell us his side of the crypto soap opera in which an australian dude named craig writes outed himself as the inventor of bitcoin. yet refuse to provide any crypto proof. but as john stands by his assertion that craig is backed out following this shambolic melodrama we're going to a guy who knows all about bitcoin they're a meal of d y n e dot org well you know this to be sure because itis mine to be your problem right now you know there's a large amount because it's in the hands of people that are trying to manipulate the community behind it but i think we should go forward there are being fired because that knowledge is out to see anything ology and absurd in fact in the community is actually able to center with sense. and that i think

beyond even be calling itself is a proof of how open source of research this worker or the editor and thinks are and who are right now and even us it's from us financial point of view we'd be actually all the other people that we used to speculate in the liberated downbeat going we're seeing that there is a community that is ready to move the kobe's base ready to actually carry on beyond equations and sees into what it's doing something useful for everyone i think that worries a lot of the financial that hands behind it must be car earth because you see that is exactly where these people are from to beat faith foundation wanted to do they want to do money these technologies into being serving just the interests of the nation is tree is not the case actually disband the range of usefulness of

can go way beyond that and he's demonstrated by developments and many other developers that less in their lives all these newspapers and headlines are wired always or who are journalists that just set the bridge that did it before me off into this discussion or. our d.d.'s all of these people that are working and are in our we are really gaining trust from the community so if anything it has tested the mettle of the open source character of bitcoin but as you point out there are still a 1000000 or so coins that are held by the soto she or soto she is plural that could come onto the market at anytime that people are thinking could have disruptive. an effect what it what's your thought there now why that holds as a threat. on the code side this is not the 1st episode of manipulation

and this story off because you're tracing it back 220092010 he said interesting experience we have people like getting ourselves self proclaimed chief scientists bit by a week on a phony issue out of these actors or has been pushed out from the right axis to decode be quick or so we have people who. played a powerful who are since the beginning bullying our father to the hearse which we're also a reference for it could mean the people who for instance they were bullied by these people and then only know the last 5 to 6 years we see that these people are actively trying to steer top down as it shifts saturdays the faith upbeat going into the summer of. star system of egos that are trying to say i am says all she is trying to say my control be quiet now and they are trying

to say yeah we have to work for the financial industry exactly the industry that we rebelled against where we own created and or where it's an issue that it needs you know to be fair again in the us and vironment we've just gone through a year of. bankers dominating the messaging on big coin it was block chain not bitcoin and there was this fear that big queen itself was being removed from the equation and we needed to be more professional we needed to get away from the hackers and the sort of participant who goes and fights isis we need to get away from that image of bitcoin then in july 2016 the bitcoin having these sort of events are when prices leading up to that were of course soaring so the big block reward fell from $25.00 to $12.00 and a half per block right to have it came in remember because i'm is a social justice hard money democracy guaranteeing platform disguised as

a get rich quick scheme so when the having pops through the system it triggers foam a fear of missing out and it triggers the greed gene and that's what you need to get hatchery up which secures the network and makes it immutable and impregnable so the aga rhythm it seems as though the creators of the big coin protocol hacks society's weakest link and that is the need by some to be greedy to extremists by appealing to those folks it actually turns the weakness of humans into a strength because they more they try to gobble it up the more they try to monopolize it with their secret behind closed doors meetings or their rage quitting the security goes up so it's ingenious it's that genius that takes me actually into philosophy because in philosophy on wrong redefined what greed is in runs

selfishness and greed are beautiful things as selfishness is loving yourself and greed is pursuing your selfishness. and so that's i think shown in the in the bitcoin realm where we're encouraging greed you're helping the system we end 2016 and honey badger don't care that my current quit because it coyness still going up and up and up. 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 1st 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 on what they think you should be see if they have this kind of power then democracy is an illusion the free and fair election doesn't exist the more road we give them the sooner we are all. good who was before. much of those who couldn't. go. with.

you. good good. move missler most of these girls will give you films to go good girls. don't go to shows from a blueprint assume you believe kishwaukee if story to you should go. to start ups to. get to needed so it was a little missed they'd say look it is it's. just testing understand just need to mash don't try to stop the president and please introduce more students. as we have producers to go to listening to snoop to come up with new yorkers are those the girls who are with you or your supporters to your shoes through she

shouldn't feel you should cook door for the one who's your business. among the stories that shapes the week a view an expert on torture says the way julian assange has been treated in recent years amounts to psychological torture the assessment came a day after a song or fail to appear to port there to help. destroy some shoes to send troops to the people for the person that has been exposed to psychologically to true over a period of time. from impeachment to case closed off eyes get something from the special counsel robert muller final say on the trump russia collision report. and redrawing the map of the e.u. elections the anti-establishment parties make major gains as europeans crave a shake up of their politics.