initial coin offering that i see 0 story because this was a huge story and 2017 more than $5600000000.00 of capital was raised in 2017 according to from token data team this compares to $1000000000.00 of traditional venture investing in block chain startups in the same time frame and in a mere $240000000.00 raised by token sales in 2016. guys are this is the kaiser report on preparing my initial point offering of the i.c.a.o. for the new crypto sensation merchants fischer matic you know so many bankers are jumping off buildings and jumping off beers of the fia world of being crushed by a group so of merchants fisherman dick you can fish with these dead bankers are. dead big i say you know if it will probably raise $150.00 or $250000000.00 for the station i'm giving you pretty icy you know coins 89 percent discount when you think

why 89 percent own at the share some of brock and this is the deal he negotiated with so let's compare this to the traditional financial system you had i.p.o.'s which were initial public offerings those were usually the way for a venture capitalist to exit their investment in a dot com company here you were having it all in one the investors i don't eaters to these projects were giving money to the founders and that was the founders exit here you had a situation whereby the people donating to these icy o's were giving the money to these founders before any product had been built it was just a white paper right so the timelines all messed up here because usually people start companies and 8 or 9 out of 10 fail but they do a friends and family round they do some money raising and they typically look for 8 or 9 years down the road before they do initial public offering. and that's after

they've attracted one or 2 rounds of venture capital and then the venture capital is exiting on the i.p.o. in the public market is participating in this new company and then it has a a life post i.p.o. and will it be the next microsoft or the next apple it takes 102030 years for this all the play out where is on the i.c.l. you had the formation the creation the the organization the exit and the monetization all happening with one event it's just here's the idea let's exit. on average they returned $12.00 x. the initial investment in dollar terms $7.00 x. in 8th and $4.00 point terms so they were massive successes and 2017 everybody involved all of those who were donating to the projects all those who were hosting these projects doing the i c o's everybody 10 down shows gave birth to

this concept of the x. return you know to put this into perspective during the dot com mania it was considered to be unbelievable a windfall event if you got 607080 percent pop on day one of your i.p.o. here you're talking about 10 x. that's 10 times the initial or 20 x. or 30 x. so the idea of this x. that you know an investment in these i.c.'s would generate x returns you know multiples of return and you know that is became normalized which was fascinating this is the beginning of hysteria people all over the world hear stories of south koreans just cashing in all their pensions their mortgages buying up all sorts of i.c.'s 2000 coins there was an eruption of coins in 2017 there were 435 projects. well at the end of the day

it's what what's the point of this token and have all these different tokens of do different things and at the end of the day you know the value is what we all agree on most of these new tokens they're not really meant to be stories of when it was meant to be anything in fact one of them like it says right there on the main website this token has no value this token is not a security token does not access our website is talking is literally for us to raise funds from you and that's it right so you're referring to a paragraph in the. description that says quite plainly this what you're buying here gives you no rights no equity it's worth nothing there's no guarantee it'll ever have any value the purpose of this disclaimer is to make them exempt from all securities laws they hope so but people buy into it anyway because it's a wink and a nod they say i know you have to put that in because you're trying to bypass the existing you know all quacks like a duck if it acts like a duck it's probably a duck i've spent many awoken nights pondering the scientific situation of the ice

you know and i've come up with what i call is the scientific word to use. fear of missing out but that's all this is is is tell your friends and you by this token everyone's buying i have tokens that people message me that haven't even gone on sale yet they're still in pre-sale and they're not even transferable trading so like want to sell $0.25 and then they then they pre-sell change the price to a dollar and all these people want $0.25 are now selling at a 75 cents and where they trade and they're trading nothing how many angels can fit on the head of a pin so here you have every single element of finance the exchanges the marketeers the business people the banter people all existing in a one space that didn't exist the head of a pen and they exploded and cashed in for billions but none of those things existed they were merely a shadow of those things the shadow of actual finance existed in an ephemeral serial i see representing nothing. but had an exit and there was about

a 18 month period when these things were all the rage in crypto are they securities or were the tokens themselves securities or investment contracts probably mostly gaffes and if you listen to what the f.c.c. has said if you would be enforcement activity in the space you reached that conclusion as well oh yes well to get around all regulations they position these initial point offerings as if you were giving the company and to say that they were securities i want to get around security laws but the people that were giving the gift of the their cash to these companies are getting less in exchange. i'm not sure they're surprised when the company decided that they would just accept the gift of their money and run away. so maxwell everybody's attention was diverted to these initial coin offerings and these hundreds of tokens being issued the block size civil war was still ongoing and it was coming to a head in may of 2017 was consensus consensus is a conference

a big conference cryptocurrency conference by that point which is very expensive to attend and it's sponsored by many big sort of corporations and at this event in may 2017 happened the new york agreement barry silbert of the digital currency group one of the very early adopters of big coin created this agreement called the big queen scaling agreement that consensus 2017 and what they decided that they would implement said it and double the block size from one megabyte to 2 megabytes so 2 x. what happened is that once this document the new york agreement and the 58 signatories was released the users of big queen they were very upset to hear that yet another agreement behind closed doors had happened and basically the knee morris erupted. the hat no to x. you ask after the u.s.s.r.

the user activated soft fork so this is something that occurred a few years ago as part of the scaling debate where due to frustration of how difficult it is to change the rules in bitcoin some people ready started looking around and trying to 5 and i would say centers of power and one of those centers of power or at least things that appears to be powerful and equate is the miners so there were various groups that were coming together trying to rally political support from mining pools and large hash rate providers and basically getting them to signal that you know they were going to change the bit coin protocol of a certain way and the threat of course being that anyone who disagreed with with those rule changes were going to find themselves on

a block chain for that essentially had no mining activity no new blocks therefore no new transactions and it was basically useless but the u.s.'s movement came about and basically said you know what we don't believe that the miners have the power that they believe they have yes they have hash power but the hash power while you can spend millions of dollars. brute forcing this cryptographic equation to create a new block and put it out on to the network. that all of that energy expenditure all of those capital resources cannot force a $10.00 raspberry pi running on the network to accept that block. that you know 5 watt tiny little computer is running its own rules and will look at that block and say you know what you broke the rules i reject it i don't care how much money you spent on it the work that miners. do does not have bally you because

they did the work any more than digging a hole has value just because they cost a bunch of calories to dig it you have to dig holes where people find it valuable you have to do work that people find valuable with crypto currencies and so these are activated sought for merely changed what the hardware is of last resort decided to value in terms of the work that the miners were doing and so this put a huge asymmetric leverage in favor of the people running the 4 nodes and greatly decreased the the apparent power that the miners have because the miners can go mine as many blocks as they want but if nobody is going to give them a block reward that's valuable for doing that work well you just burned a bunch of electricity from that standpoint the belief was that in fact the users in aggregate the people running these nodes they get to decide whether or not to

accept the blocks of the miners in fact have more power than the miners so as a result we had a bunch of people create this u.s.'s fork of bitcoin core which basically said you know what we're drawing the line in the say and on this date we're going to start activating these features and if you're blocks don't activate the features we're going to reject your blocks and you're not going to get paid any more.

the project was good for you you'll run your breath for like if you missed it or don't believe people look. at them with a response or move cheaper solution that your. government says i should be a model which to me the facts are got just for this new the know you've been easy in this loop i'm going to miss louie you must feel a need i'm used to this in both of us and us filling out anything yeah she knew going in voting is a meaning of their history of faith. you know you are nice to us because.

you're going to preach be as good as you know to you know what who are you more you would know much today. is the whole truth and doing it will go. to some list only within you only someone who knows the word. of the. winds and also in wales. oh july 2017 was the resolution of the block size war the users of bitcoin determine the outcome of bitcoin it wasn't the powerful miners it wasn't the billionaires they introduced 148 and the user activated saw for aug 1st there was a soft fork to basically save at the same time there was also a hard for that happened on august 1st 2017 and that was to be cash or

bitcoin cash and you know it's versus a big cash because the founders of big cash don't like that word but that was the forte remember the day before everybody was hanging on the edge of the seat that this is going to be hard for to bitcoin cash and there's going to be these are activated off or will bit coins survive nobody knew for sure and it survived by the end of the day august 1st it was still around it was still there and then it set the stage for the 2nd half of the year and what we actually did was we issued this user activated software this ability to you with our own full nodes decide what big question is for us because no because it is the centralized because it could be many things to many people but you the individual have the ability to decide what is for you by running the big software and enforcing the rules that you believe to be big and so that is what we did as a people as a as a community millions of people across the world we ran the user activated software which was the version of big win that we believed to be the real big and so that of

course might have caused a chain split and that end up scaring some of the some of the larger corporations some of the larger mining companies they didn't want to see chains split so they essentially backed off and it was a very public loss and a very public win for the for the community this really something that was what i calls completely unprecedented this was really the. you know type of battle that we saw here and at the end of the day it was the users of the was the community that once again. these large large corporations and so this was a defining moment for a big coin because it's set up very adversarial really the position between certain users in the minors and the minors at the end of the day seemed to relent pretty quickly and this is because the economics and the game theory basseley support the individual or the hardware to be in the minors there they actually have

a very weak position in terms of the game theory big question is just a fascinating social and economic experiment in this regard. of course brings us to the scaling debate so where are we in this in this this better break through some argue it's not as clean cut as others suggest where are we on the scaling debate going charlie i'm a free market person i believe that markets are markets are efficient when we allow them to be put off of their own it's not going to be as fast as human beings we want it to be we want instagram if we want things done now so yes the scaling debate took 2 years however how many bad solutions came and went how many how many things happened that kind of a threat why was there a need for scale scaling need what is it because it is a big one is growing and because it is growing to a point where we need the ability to have more transactions when it's arrival the

visa or master network when it's arrival swift we need to scale the right way the other side of the client says now that's not really you get to keep it as a store of value and you know your time ok around you even a store of value folks think that we need to scale what they think that is to be scaled in a different way so here we have a market created compromise and as we saw there day it passed with over 90 percent consensus what are we seeing any you know senator congress. i have been able to do something with 90 percent consensus it's almost never this took a long time yes but it takes a while to get a perfect market solution i think this is one of the most bullish things that ever happens of course what if some bad actor came along with 500000000000 dollars and said hey i want to change pick one to suit my needs a lot of money you could influence a lot of people but as we saw a lot of people start doing that craig right all these different companies and unlimited zones they tried to influence because of their own way but the market

didn't allow them to do it and the market created the perfect prize and it passed everyone got together and that's what i see here is like this was this was like perfect governance this well is the notion is that it isn't just game theory succeeding it's game theory will always succeed in the end and it's perfect market clearly did ask equilibrium in this case was the current iteration yeah this is a little silly that's why i so i've always felt that if you just think of this is a giant game theory experiment it'll ols work out fine that's what it is you don't need to get too deep into the tax debate as such i've said it on your show a 1000000 times big coin is one of the largest social economic experiments we've ever had in the history of the world and this is not solidifies that argument this is if anything if peter schiff can say the corner is now no value blah blah blah but there is a huge value and begin to study one of the largest social economic experiments and the history of humankind. obituary one eating jamie diamond says if you're stupid

enough to buy fish oil and you'll pay the price well yeah $100000.00 a coin so all the headlines leading up to august 1st when we had a soft hard fork all the headlines were again that was dead because he was dying would not survive august 1st we were on the edge of our sea everybody was on the edge of the sea waiting to see what happened basically it was like y2k it all survived we survived everything was ok and from there we saw. of course from august 1st till the end of december we saw an epic parabolic move in big queen and it went up to $19000.00 by the end of the year that is correct once released from this controversy the price started a. hyperbolic move north toward this 20000 price and i remember being quoted in the press that you know once we got past segue that this

really opened the doors out to a new era scaling promise that would be coming is looks like it's going to happen and money started to flow into because of an accelerated pace cash went on its own separate way because we stayed as users wanted it into this mix came basically chicago it wasn't wall street it was chicago and options and derivatives. we are recording this quite a few hours before the futures markets opened in chicago. has become a huge massive international story everybody's hearing about it we're getting a lot of tweets and a lot of e-mails asking how to buy it how to buy and people are panic buying and you're certainly seeing that i saw a chart of buys versus and it's all buy is no selling there's nobody selling so you're seeing quite a basically a melt up and then rollercoaster down in those very volatile you we're going to see

a lot of volatility in back home prices as these futures markets unfold there's going to be multiple futures contracts multiple banks all these banks are getting into it it'll create a bigger pipe for more money to flow into bit calling right now the pipe is about like this is a relatively miniscule market compared to the bond futures the currency futures stock futures you know 5 trillion dollars worth of forex per day is the market because in that arena. as a pipsqueak by expanding these contracts futures contracts derivatives are bringing wall street chicago into the mix you're taking that small straw which is an on ramp for fear into bitcoin and you're making it massively bigger futures markets are very important they were developed for commodity markets for farmers agricultural sector and they needed a way to hedge their costs because their shoots cost the planting of a field of corn and you wouldn't know for a month or not whether or not it would be hit with blight or bad weather awful

stuff so you need to protect and see lock in your your profits your the costs of doing business but in terms of this futures contract it settles not in corn or wheat or because the commodity is settles in paper all derivatives even though they may be leveraged under to $1000.00 to $1.00 they're still referencing an underlying commodity that's held somewhere in custody if you remove the custody layer then everything built on top of it becomes instantly worthless the big coin market you do have now the hadal as a last resort as they're called they have within their abilities to do battle with the naked short sellers in the in the futures markets in a way that would restore price integrity in and i think that going forward that would become an issue. the price suppression schemes to petition encourages collusion and a decline in protocol it's almost game theory yeah and the game theory that is

defeated a lot of players to co-opt the mining industry in particular has. prevailed so these guys who are used to getting the easy collusion in the precious metals markets they might risk 10 or 15 percent of their capital if they get it wrong on this market they could they could get right that's exactly right that's exactly the point the financial industry controls the base collateral in the gold market through through. goal of all systems but they don't control the base collateral and the big one market. of last resort who control face collateral it is not only that risk is 15 percent it's several 100 it's losing it all right absolutely deeply into debt and it's a war it's a standoff between a listers or yes. that's right. december 11th 2017 big queen futures begin trading on the c b o e n chicago the price of between

jumped by over $1000.00 and the 1st few minutes of trading which was part of the epic bowl run from under $2000.00 in august to nearly $20000.00 by the end of december on december 11th you have the c b o e then on december 18th you have the sea launched their futures contract now many in the world community the likes of jim rickards were saying once this big question futures happen then you're going to see the epic paper shorts you can see the crash of bitcoin and to be fair on december 18th that was the all time high because and thus began the descent of bitcoin from that price well as we were saying about life master she came in. at the behest of wall street to try to financial eyes because to separate the blushing from the because i'm and to try to destabilize because and because overcame that attack now we have another assault for wall street this is the futures contracts

that's another attempt for wall street to get in there and try to undermine bitcoin to try to financial eyes and to bring in concepts like react off occasion and other ways of water uses to control price and manipulate price and this is coincidental with the top in the market and the ability to sell contracts that were in excess of what the market was actually showing was the appetite for these orders. drove the price down one could argue you need a lot of demand to fill these paper shorts these counterfeit shorts and that demand is being fueled in large part by a mania that was seemed to be unsustainable and was undergoing a bubble so we start 2017 bitcoin $1000.00 we have over the course of 2017 the block size war ends and the winners are the users

. august 1st happens we see the user activated saw 4 and we see the hard for cash the bad actors in the big space basically split off into this hard fort that sets in motion an epic run a parabolic run in the and the price of bitcoin we and 2017 with an all time high and because over 900000 hundreds of billions of dollars of market cap that sort of conversation that you and barry silbert had had when it was a mere $6000000000.00 a market cap had come true and wall street futures markets the derivatives market which is a quadrillions of dollars market enters this space december 27th teen yeah way out of the air pushing 840000000000 almost a trillion in market and the comment was we're having to 5 trillion will see how that works.

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