LETS TALK BITCOIN

Episode 101 The Why of Bitcoin

Participants:
Adam B. Levine (ABL) Host
Andreas Antonopouos (AA)
C!ris Eis (CE)
[ABL]: Toda" is Apri #$t!% &'#( and t!is is Episode #'#.
T!is pro)ram is intended *or in*ormationa and edu+ationa purposes on". Cr"pto+urren+" is
a ne, *ied o* stud". Consut "our o+a *uturist% a,"er% and investment advisor -e*ore
ma.in) an" de+isions ,!atsoever *or "ourse*.
/e+ome to Lets Ta. Bit+oin% a t,i+e0,ee." s!o, a-out t!e ideas% peope% and pro1e+ts
-uidin) t!e di)ita e+onom" and t!e *uture o* mone". 2'34#5
6" name is Adam B. Levine and toda"% ,ere )oin) to tr" somet!in) a itte di**erent.
Andreas Antonopouos is 1oined -" C!ris Eis in LTB #'# *or toda"s dis+ussion on Bit+oin
p!iosop!". /!ie "ou dont !ave to ta.e notes% t!ere ,i -e a 7ui8. En1o" t!e s!o,. 2'3(95
[AA]: Hi% t!is is Andreas Antonopouos o* Lets Ta. Bit+oin. Toda"% I !ave C!ris Eis o*
:eat!er+oin on t!e s!o, and ,e -e ta.in) a-out Bit+oin and p!iosop!". C!ris% ,e+ome
to t!e s!o,. 2#3''5
[CE]: T!an.s ver" mu+! *or !avin) me. 2#3'(5
[AA]: I rea" en1o"ed our dis+ussion t!e ot!er da" ; I ,anted to e<pand on it a itte -it. As
"ou .no,% part o* m" !erita)e is =ree. ; t!at doesnt )ive me an" parti+uar insi)!t into
=ree. p!iosop!" ; -ut I +ertain" understand some o* t!e motivations -e!ind t!e =ree.
p!iosop!" -e+ause it is so em-edded in our )reat +uture. I rea" en1o"ed !earin) "ou ta.
a-out p!iosop!"; I t!in. ,e s!are a +ommon understandin) o* a need *or *ormin) a
narrative and +reatin) t!e ri)!t +ir+umstan+es around Bit+oin. Be*ore ,e )et to t!at% ets ta.e
a step -a+. ; ,!" p!iosop!" and Bit+oin> 2#3(&5
[CE]: /e% t!ere is no understandin) Bit+oin ,it!out t!e p!iosop!". /e s!oud pro-a-"
start o** ,it! ; ,!" p!iosop!"> And t!is is t!e 7uestion a ot o* peope )et. ?!iosop!" is
; and I mi)!t )et into a ot o* trou-e *or sa"in) t!is -e+ause an"one ,!o tries to de*ine it
usua" does ; its t!e @,!at isA 2unintei)i-e5. It 7uestions previous assumptions% and
t!in)s ,e t!ou)!t ,e .ne, to -e true. Its a+tua" more a ,a" o* -ein)% it )ives us a ,a" o*
deain) ,it! t!e un.no,n% t!e un.no,a-e. /!at it does is ; -uids a se*0.no,ed)e. Ho,
do I understand m"se* in reations to t!e environment> I* I understand m"se*% t!en it rea"
doesnt matter ,!ere I am or ,!en I am ; t!en I ,i !ave t!e *rame,or. I need% a tempate
and a set o* toos% ,it! +riti+a t!in.in) and so on% a-out !o, to dea ,it! it. A-out !o, I +an
earn. I* I dont .no, an"t!in) a-out m" environment% and I dont .no, an"t!in) a-out
m"se*% t!ats usua" not )ood ne,s. 2&34B5
[AA]: Its a-out earnin) ; more so t!an a-out !avin) .no,ed)e ; its a-out t!e pro+ess
o* a+7uirin) .no,ed)e and reatin) to t!e environment. 2&3(C5
[CE]: Douve )ot it ; "ouve )ot it. I* ,e ,ant to -e ver" parti+uar% ,e +an sa" its a-out
ta.in) data% turnin) it into in*ormation% turnin) in*ormation into .no,ed)e% and t!en turnin)
t!at .no,ed)e into se*0.no,ed)e% ,isdom. Philo ; ove and sophia% ,isdom. Dou !ave
t!e ove o* ,isdom. Its a movement. Its a movin). 243'(5
Sa"in) "ou are )oin) to p!iosop!i8e ; I ma.e no +aims a-out -ein) a p!iosop!er. I am
ver" inse+ure a-out m" .no,ed)e. I des+ri-e m"se* as a t!in.er. I i.e ta.in) to peope
a-out et!i+a issues% a-out !ard issues. A-out issues t!e" pro-a-" on" t!in. a-out ,!en
t!e"re on a train% oo.in) out t!e ,indo,% -ut not t!e .ind o* t!in)s t!e" ,oud ever t!in.
a-out at ,or.. Im t!in.in) a-out t!in)s ,it! no e<pe+tation o* return. Im not t!in.in) a-out
,!at Im )oin) to )et out o* t!is. Be+ause utimate"% t!in.in) resuts in *aiure. T!e ris.
"oure ta.in) ,it! p!iosop!"% is "ou dont .no, ,!at its )oin) to produ+e. Dou dont .no,
,!at t!e out+ome is )oin) to -e. Sometimes t!e t!ou)!t ,i 1ust stop ver" a-rupt" and ,i
ma.e "ou *ee ver" si"% parti+uar" i* "oure )ivin) a voi+e to ot!er peope. Sometimes% it
,i .eep )oin) on and on and on. T!e t!ou)!t ,i ta.e "ou to a .inds o* pa+es and "ou
,i run out o* ener)". 243$(5
[AA]: T!in.in) itse* is modein) t!e ,ord. In doin) so% "ou are ta.in) somet!in) t!at !as
in*inite +ompe<it" and in*inite dept! and tr"in) to map it into a *inite mode t!at +an *it
inside "our !ead and t!in.in) patterns. B" its ver" de*inition% t!is is a oss" pro+ess. /!en
"ou ta.e% sa"% t!ree dimensions and "ou map t!em to t,o% "ou ose somet!in) in t!e pro+ess.
B" t!e ver" de*inition% i* "ou tr" to +reate an a-stra+t mode o* t!e ,ord% "ou !ave to remove
most o* it% in order to understand it% even a tin" -it. I *ind it *unn" "ou sa"% "oure inse+ure
a-out +ain) "ourse* a p!iosop!er -e+ause t!ats a-soute" ver" +!ara+teristi+ o* peope
,!o are t!in.ers ; is t!e" are unsure. Certaint" +omes most" *rom i)noran+e% I ,oud sa"%
rat!er t!an *rom .no,ed)e. Kno,ed)e ma.es "ou e<treme" inse+ure -e+ause t!e more "ou
earn% t!e more "ou .no, "ou dont .no,. 2(3$$5
[CE]: T!ats ri)!t. A-soute". Its a+tua" 7uite i.e -ein) an at!ete% in a ,a". Its i.e
sa"in) "oure )oin) to do at!eti+s ; edu+ation o* t!e -od" ; t!ats !o, I am
understandin) it. /!at .ind o* at!ete> Dou +oud -e a runner% "ou +oud -e a ro,er% "ou
+oud -e a s,immer. Dou +an )et "our p!iosop!" *rom iterature% *rom art% *rom *im ;
prett" mu+! an",!ere ; "ou +an )et it *rom ide ta. ; ever" da"% ,ater0+ooer t"pe
+onversations. T!e pro-em is% its .ind o* impoveris!ed ; ,!en "ou ta.e it do,n to t!e
eve o* ,!at Heide))er ,i +a t!e @inaut!enti+A mode. T!is is e<istentiaism. Dou .ind o*
)o around "our i*e% "oure not rea" t!in.in) a-out ,!at "oure doin)% "oure 1ust .ind o*
)ettin) on ,it! t!e da" state. Its a a-out t!e @t!e"A state ; ,!at did @t!e"A sa" on t!e
ne,s. Dou redu+e ever"t!in) to t!is .ind o* avera)e @ever"da"0ness.A Dou sti )et t!at itte
voi+e in "our !ead t!at sa"s% @Dou are ,astin) "our i*e. Dou are ,astin) "our i*e% "ou
.no,.A Its t!ere and its +ain) "ou. Dou are +ompete" -ind to it and "ou 1ust )et ,as!ed
a,a" -" t!e )enera +onsensus% -" 1ust t!e ,i 0 t!e )enera ,i. 2$3$C5
I *ee it is apt to sa" -e+ause I !avent rea" said t!is -e*ore an" o* t!e times ,e met -e*ore
on t!e Bit+oin =roup ; I am !eavi" in*uen+ed -" peope i.e Eo-ert Harrison at KFSG
Stan*ord pro*essor% !u)e" in*uentia Core" Anton% and t!e )u"s t!at partia" e<amine i*e%
as ,e. /!en I ta.% I ,ant to put t!at in t!ere% so an"one istenin) to me ; i* t!e" ,ant to
earn more ; t!e" ,ant to see ,!ere m" t!ou)!ts !ave +ome *rom% t!ose t!ree pa+es% in
parti+uar% !ave -een ver"% ver" in*uentia to me. 293&95
[AA]: T!ere is somet!in) a-out -ein) a-e to )o out t!ere and ta. ,it! peope a-out t!in)s
t!at rea" matter and !ave meanin)*u +onversations t!at I *ind tremendous" re,ardin). I
t!in. t!ats ,!ere .no,ed)e +omes *rom. It +omes *rom testin) "our assumptions and
as.in) tou)! 7uestions and -ein) as.ed tou)! 7uestions. I *ind one o* t!e most re,ardin)
parts o* m" 1o- in Bit+oin is t!e a-iit" to meet ,it! mem-ers o* t!e +ommunit" on a ver"
re)uar -asis and )et essentia" a *ree ride aon) ,it! t!eir +ommunit" and earn *rom ,!at
t!e"re doin) in Bit+oin. T!rou)! t!at pro+ess I +an deveop a o* t!e ideas and t!at I t!en
ta.e pu-i+ and ta. a-out t!rou)! t!e various s!o,s t!at I do. But rea"% its not a-out me
+omin) up ,it! ideas aone in a room ; its a-out !avin) +onversations ever" sin)e da".
T!ese +onversations "an. me out o* an" possi-iit" o* )ettin) ost in t!e mundane -e+ause
m" t!in.in) is +!aen)ed ever" sin)e da" t!at ,a". 2C3&C5
[CE]: Dou are a-soute" ri)!t. /!at I sa" to peope is ; i* "ou are smarter t!an most o*
"our *riends% "ouve )ot t!e ,ron) *riends. Dou need to move into ne, +ir+es and peope
,!o +an test "ou. Not test "ou so mu+! "ou end up *eein) terri-e a-out "ourse*. Not sa"in)
"ou s!oud 1oin CEEN or somet!in)% i* "oure not )ood enou)! at p!"si+s. He*inite" su-1e+t
"ourse* to +riti+a t!in.ers ,!o +an +!aen)e "ou in ne, ,a"s. 2C3$'5
[AA]: T!eres a ,!oe ,ord out t!ere and its *u o* +onventiona ,isdom. :u o* ideas ,e
ta.e *or )ranted. I* "ou pee.% 1ust -eo, t!e sur*a+e% most o* t!e most +ommon" !ed -eie*s
in our ,ord are *undamenta" untrue. T!ats ,!at rea" *as+inates me ; t!in)s t!at t!e
vast ma1orit" o* peope -eieve in ; are pro-a-" t!e east true t!in)s out t!ere. 2I3#I5
[CE]: Be+ause ,e on" )et to trut! t!rou)! time. So *or e<ampe% ets ta.e notion o* a .in)%
a soverei)n. A .in)% a+tua"% at t!e -e)innin) o* a rei)n% is a re-e. He starts i*e as a usurper%
-ut ends i*e as a .ind o* over,ei)!t% o-ese% u<uriatin) in a !is )or". T!e t!rone )ets too
+om*orta-e and !e doesnt ,ant to ose !is po,er an"more. So t!en% "ou need to !ave a ne,
.in). :rom our perspe+tive% oo.in) -a+.% it oo.s i.e a .in) is 1ust in+um-ent% a+ts i.e t!is
is norma. /!" +!aen)e it> 2I3$(5
No, ,e are startin) to see ,it! t!e introdu+tion o* +oin ; I dont .no, a-out "ou% -ut I
!eard "ou sa"% ,!en "ou *irst read t!e paper% "ou +oudnt eat% "ou +oudnt seep ; I !ad
e<a+t" t!e same rea+tion. I sti dont eat on+e or t,i+e a da" -e+ause eatin) interrupts m"
t!in.in) I ,ant to .eep t!in.in)% so I dont eat% I 1ust drin. +o**ee% and 1ust read and read
and read. 2B3#C5
T!is ,!oe +ommunit" rea" is 0 -it+oin +ommunit"% o.a"> It divides t!e +urious *rom t!e
non0+urious. T!e" are -ot! runnin) around and earnin) a-out t!is interestin) ne,
p!enomenon ;t!en t!ere are peope t!at are 1ust starin) at t,o dimensiona s!ado,s on t!e
,a% +aimin) .no,ed)e a-out t!e t!ree dimensiona o-1e+ts t!e" are meant to represent.
Dou +ant understand t!e +ompe<it" and t!e ri+!ness ; as "ou auded to earier o* a t!ree0
dimensiona o-1e+t ; -" starin) at pri+e% *or e<ampe. T!ats t!e +ommon one. Its not to sa"
t!at pri+e doesnt matter ; its sti one aspe+t ; 1ust not t!e most important one. 2#'3'#5
It *as into a m"riad ; it ma.es up 1ust one part o* a ver" +ompe< pi+ture. I 7uite i.e it ;
t!e ,!oe +ommunit" -rin)s me to)et!er ,it! peope I ,oudnt !ave met ot!er,ise. Had
Bit+oin not e<isted% I ,oudnt !ave met a )reat peope Ive +ome a+ross. Ive seen "ou% t!is
s!o, ; its -een )reat -e+ause I re)uar" )o and +onta+t peope t!at !ave appeared on t!is
s!o, or oo. into t!eir ,or.. Some-od"% t!e ot!er da" at Coin:est in Jan+ouver% +r"pto
Dout!% Nat!an in Korea started up t!is ama8in) pro1e+t to ta.e t!e pro+eeds o* -it+oin minin)
and various +r"pto+urren+" minin) ; and )ive it to +!idren ; disadvanta)ed +!idren at
ris. ;to !ep pa" *or s+!oars!ips. T!is is *antasti+K T!ese se*0pro+aimed e<perts ta. a-out
t!e -u--e% I t!in.% @o.a"%A -ut a I !ear is a -un+! o* non se7uiturs ; its not t!at "oure
,ron)% its 1ust "oure missin) t!e point. Doure not ri)!t% eit!er. Doure approa+!in) t!is ne,
o-1e+t and sa"in)% @I aread" .no, ,!at it is. I e<pe+t it to +ome read"0made% as ,e.A T!ats
t!e ot!er t!in)% t!ere is a rea .ind o* a8iness to t!e t!in.in). It s!oud 1ust !ave ever"t!in)%
-uit0in% strai)!t a,a"% *or me% read" to )o. 2##3&(5
But t!en% ot!er peope are more )enerous. T!e" +ome to it% and sa"% @Isnt t!at interestin)> I
,onder ,!at I +an earn a-out t!is> I ,onder ,!at t!e possi-iities are *or t!is> /!at +oud
t!is do *or peope> /!at do "ou mean ; I +an transmit e+onomi+ vaue to t!e ,ord at a
distan+e% at near instantaneous speed% at no +ost>A It 1ust mind -o))es. At east it !eps us to
identi*" t!e )ood *rom t!e -ad. T!ats ,!at mone" is. 6one" -rin)s to)et!er t!e !onest%
dis!onest% t!e +riminas% t!e poi+e ;it -rin)s to)et!er ever"-od" in a pa+e. Dou dont eave
unti "ou .no, ,!". I t!in. t!e peope approa+!in) t!is ne, ,a" o* -ein)% I ,oud sa"% its a
ne, ,a" o* a+tin)% -e+ause its not 1ust a-out t!e mone"% its aso a-out t!e ,or. ,e s!oud
investi)ate a -it. /!en peope sa" intrinsi+ vaue% t!e"re rea" sa"in) ; I dont *ind ,!at
supports +ommodit" to -e vaua-e to me. Its not important to me ;t!ats a -etter ,a" o*
sa"in) it. Its not important to me. 2#&34&5
[AA]: Its *undamenta" misunderstandin)% t!e t!in) *or t!e s"m-o. /!i+! is an an+ient
p!iosop!i+a 7uestion. Intrinsi+ vaue assumes t!at t!ere is a t!in) -e!ind t!e s"m-o.
6one"% in itse*% is rea"% not 1ust a s"m-o% its a an)ua)e. A an)ua)e *or +ommuni+atin)
vaue -et,een peope. 6one" is not 1ust s"m-oi+ in t!e ver" -asi+ sense% its a *u
s"m-oo)" o* vaue% and its used to +ommuni+ate vaue in an a-stra+t an)ua)e% *or ,!i+!
t!ere is no t!in) -e!ind it. T!e e**ort to *ind t!e intrinsi+ vaue% is amost i.e t!e e**ort to
*ind t!e patoni+ idea s!ape ;t!at e<ists to )ive t!e a-stra+tion reait". T!e a-stra+tion
on" ,or.s i* t!ere is somet!in) -e!ind it to )ive it vaue. /e .no, t!at is not t!e +ase. /e
.no, t!rou)! repeated appi+ation and t!rou)! !istor"% t!at s"m-os and an)ua)es emer)e%
and t!e" serve purposes re)ardess o* intrinsi+ vaue. Intrinsi+ vaue% in itse*% is amost an
o<"moron. Be+ause vaue is an assi)ned a-stra+tion and t!ere*ore +annot -e intrinsi+. Jaue
is assi)ned on a +onte<t0-"0+onte<t -asis% on moment0-"0moment -asis. 2#(3'&5
Here in t!e GS% ,e ta.e even simpe t!in)s% t!at s!oud !ave intrinsi+ vaue ,ater% ,!i+! is
i*e )ivin). And "ou ive in a so+iet" ,!ere ,ater is most" a-undant% "ou put it in a *ountain%
and "ou t!ro, mone" in it. Someone t,eeted t!is p!oto o* an A*ri+an +!id% oo.in) up at a
,estern 1ournaist% and t!e +aption ,as% @So% ,!at "oure tr"in) to te me is "ou pee in a
-o, o* +ean ,ater>A T!ats unt!in.a-e -e+ause t!ere is no +ean ,ater in man" pa+es in
t!e ,ord. But ,!at is t!e intrinsi+ vaue o* ,ater> T!e intrinsi+ vaue o* ,ater is in*inite
,!en "ou are t!irst"% and amost 8ero% ,!en "oure not% ,!en its a-undant. /!i+! means its
not intrinsi+. Its somet!in) t!ats assi)ned to us pure" -ased on t!e +onte<t ; -ased on !o,
s+ar+e it is% -ased on our needs% -ased on our environment% -ased on our *uture e<pe+tations
o* its avaia-iit". 2#$3#$5
I )ot into deep trou-e over sa"in) t!at even *ood and ,ater doesnt !ave intrinsi+ vaue ; i*
it is a-undant. I* it is a-undant% and t!at is t!e .e" p!rase% o* +ourse t!ere. Even t!at pro-a-"
t!at !as t!e most intrinsi+ vaue -e+ause it is i*e sustainin). Even t!at !as ver" itte intrinsi+
vaue% not 8ero% -ut amost no vaue ,!en it is a-undant. 2#$3(#5
A o* t!ese +on+epts o* intrinsi+ vaue represent *undamenta misunderstandin) o* mone".
T!at is ,!at I *ind *as+inatin) is ,!en "ou ta. to peope a-out -it+oin% "ou 7ui+." reai8e at
east% i.e me% t!e" rea" didnt understand mone" unti t!e" started as.in) t!e tou)!
7uestions. 2#93'&5
One o* t!e t!in)s Bit+oin is doin) is startin) ; or +r"pto+urren+ies in )enera ; is startin) a
+onversation a-out ,!at is mone". :or+in) us to s.ip t!e eas" 7uestions% or rat!er% s.ip t!e
eas" ans,ers. It *or+es us to s.ip t!e eas" ans,ers -e+ause it vioates t!e eas" ans,ers. /e
*ind t!e eas" ans,ers t!emseves ,as t!e mira)e. /!at is mone"> Somet!in) t!at !as
intrinsi+ vaue ; ,e% not rea". Somet!in) t!at +an -e used to e<+!an)e vaue ; not
a,a"s. A t!e eas" ans,ers )o out t!e ,indo,. And "ou are *or+ed to +on*ront t!e *a+t t!at
mone" is% in *a+t% a +utura p!enomenon% a an)ua)e% an a-stra+tion ;mu+!% mu+! more
+ompe< t!an ,e reai8e. Its not 1ust pie+es o* )reen *a-ri+ ,it! ots o* )erms on t!em t!at
peope e<+!an)e as i* t!e" mean somet!in). 2#C3'45
[CE]: Intrinsi+ vaue is t!ere -e+ause ever"one a)rees its t!ere. Its a +onsensus. It is% "ou
are a-soute" ri)!t% ever"t!in) "ou sa"% is a-soute" ri)!t. I t!in. ,!at peope are on)in)
*or is a permanent store o* vaue. T!e pro-em is t!at time is a,a"s )oin) to !umiiate us.
Its a,a"s )oin) to +ome up ,it! somet!in) ne,% somet!in) unanti+ipata-e. Its )oin) to
s!o, us its *or+es% its )oin) to sa"% @T!is ,as never vaua-e% did "ou not reai8e>A I t!in.
,ere t!e ones puttin) t!e vaue in t!ere% are ,e not> 2#C3('5
[AA]: Des% i* an"t!in)% t!e one true t!in) in t!e universe is entrop". A permanent store o*
vaue ,oud -e a non0entropi+ o-1e+t ; an o-1e+t t!at is not a**e+ted -" entrop" t!at ives
outside o* spa+e and time. An o-1e+t t!at +annot -e +orrupted. ?atoni+ idea. T!ats rea"
,!at ,ere oo.in) at. A)ain% i* on" "ou !ad t!is per*e+t o-1e+t t!at ,as in+orrupti-e% t!at
,as never depetin)% t!at ,as a,a"s use*u ; in a ,a" it never +!an)ed in its use*uness.
T!en t!at ,oud !ave intrinsi+ vaue. T!at assumes a ,ord t!at doesnt e<ist% t!e ,ord t!at
doesnt !ave +!an)e. C!an)e is t!e on" t!in) t!at e<ists. 2#I3&C5
[CE]: T!ats ri)!t +!an)e and aso% t!e rate o* +!an)e. One o* t!e t!in)s t!ats di**erent
no,% an" ot!er point in !istor"% is ,e !ave su+! a -i) pi+ture. /e +an see *urt!er -a+. into
time and spa+e. /e !ave ,!at so+ioo)ists +a ; am-ient so+iait". T!e ,!oe ,ord is
distan+ed to me. Im so +ose% "et so *ar a,a" *rom ot!er peope in t!e ,ord. /!at it does is
ma.es us responsi-e. It ma.es us responsi-e -e+ause no, ,e !ave t!e a-iit" to respond. I
+an no, do somet!in) to !ep t!at person t!at ,as a vi+tim o* t!at tsunami. T!ere is no
e<+use ; Im runnin) out o* e<+uses. Even to m"se*% even i* t!ere is no-od" t!ere to
,itness me ,at+!in) t!e stor" un*od on t!e ne,s% ,!i+! Im )ettin) in rea time% *rom man"
an)es. Im !avin) a .inds o* e<perts% on meteoroo)" te me a a-out t!ese .ind o*
,eat!er patterns and t!e impa+t t!e" +an !ave. Even i* t!ere is no-od" to see% Im sti
as!amed% i* I dont send t!e mone". Li.e a miniature version o* so+iet" in m" !ead t!at sa"s%
@Ho t!is. Ho "ou rea" need t!at mone">A T!e demand *or mone" is s." !i)! ri)!t no,.
2#B3(95
Anot!er ,a" o* t!in.in) a-out mone" ; is i7uid% i.e a .ind o* ,ater ; it +an move -ut it
+an aso *ree8e. ?eope% I t!in.% t!at 1ust ,ant mone" ; *or t!e sa.e o* ,antin) mone" ; are
1ust ,aitin) to -e -orn. Its t!e sum tota mass o* a o* "our prior e+onomi+ ener)" ; +omes
to)et!er% mani*ests as one -o+.% one entit" in "our ,ord t!at "ou +an t!en distri-ute. T!e
,ord +urren+"% I t!in. Lo!n Lo+.e appied it% as !e appied it ; ,as +urrents% not 1ust a *o,
; -ut aso means t!en to t!e present. 6one" aso )ives "ou an e<tension ; rat!er t!an
!an.erin) o** *or more and more and more o* it ; "ou s!oud a+tua" t!in. a-out ,!at "ou
s!oud do ,it! it no,. /!at is "our net present vaue> 2&'34C5
/eve said t!is -e*ore ,!en ,eve spo.en ; and ma"-e ,e s!oud sa" t!is a)ain ; t!e
reason ,e )ot into t!is *inan+ia mess in t!e *irst pa+e is -e+ause t!e peope )ot a8". T!e"
outsour+ed ,eat! mana)ement to a -un+! o* peope ,!o t!en ended up o,nin) an industr"
t!at !ad !u)e net present vaue. T!e" !ad t!e mone" no,. T!ats a t!at rea" mattered so%
t!e" *ormed )am-in) addi+tions% and started ta.in) a t!ese +ra8" -ets% and mean,!ie%
peope et t!em. /e see t!e num-ers on t!e s+reen. T!is time t!ose s!ado,s dont rea"
represent ,!ats -e!ind t!ere ; t!e"re 1ust pi<es. T!e" te "ou% @Dou !ave I%''' M in "our
-an..A But do "ou> No% -e+ause i* ever"-od" turned up tomorro, and tried to +aim it% t!at
mone" ,oudnt -e t!ere. 2&#3&45
[Music] 2&#34'5
[Adertise!ent] T!is is C!ris Losep!% -rin)in) "ou ne,s on NNT% t!e *irst true se+ond
)eneration +r"pto+urren+" *or Apri #9%
&'#(
. Severa ne, +ode *eatures !ave -een in+uded in
t!e ne,est version o* t!e NNT testnet so*t,are. T!ese in+ude t!e NNT Hi)ita =oods Store
; ,!i+! is a de+entrai8ed mar.et *or t!e sae o* di)ita *ies. And E**e+tive Leasin)% a sort
o* poo% ,!ere "ou ease t!e minin) po,er o* "our sta.e ,it!out a+tua" sendin) an"one
"our +oins. T!ese *eatures are as "et untested and sti need A?Is ,ritten% and so i* t!e" sound
e<+itin) to "ou; and "oure a 1ava +odin) ,i8ard ; ,e +oud use "ou.
T!e ne, so*t,are aso in+udes +ode *or +anoni+a si)natures ; a met!od *or eiminatin)
t!e transa+tion maea-iit" pro-em ; ,!i+! ,as pit+!ed -" +ommunit" mem-ers as
desi)ned t!rou)! *orum dis+ussions. :or more )enera in*ormation on NNT% or to )et
invoved% !ead to n<t*orum.or) and +!e+. out t!e NNT ne,setter at n<ter.or). And o* +ourse%
sta" tuned *or more ne,s on NNT on t!e ne<t Lets Ta. Bit+oin -road+ast. 2&&34'5
[AA]: 6one" as a an)ua)e% is rea" a-out time s!i*tin) vaue and resour+es. It ao,s "ou to
-rin) vaue *rom t!e *uture into t!e present and to ta.e vaue *rom t!e past and e<tend it to
t!e *uture. It rea" is a tempora +onversation ;a time s!i*tin) o* vaue and resour+es. But it
aso ao,s us to do spa+e s!i*tin). No,% Bit+oin and +r"pto+urren+ies ao, us to do -ot!
,it! mu+! )reater i7uidit" and veo+it" t!an ever -e*ore. T!at% in itse*% +!aen)es t!e
assumptions. 2&43'I5
I* "ou t!in. a-out it% ,e are used to mone" -ein) i7uid -ut ,ere aso used to mone" !avin)
a +ertain amount o* vis+osit". In *a+t% ,e depend on t!is vis+osit" in order to ma.e sense o*
our ,ord. I* mone" is% in *a+t% instant" trans*erra-e an",!ere in t!e ,ord ; t!at vioates a
ot o* t!e sa*et" )uards ; it vioates a ot o* t!e assumptions ,e !ave a-out !o, mone"
,or.s% -e+ause 8ero *ri+tion mone" doesnt ma.e sense to us. /e are used to mone" t!at !as
vis+osit" and *ri+tion -uit in and% in *a+t% ,e depend on t!at vis+osit" to a+!ieve +ertain
resuts% to a+!ieve +ertain )oas. 2&43$$5
T!e vis+osit" itse* -e+omes part o* t!e operatin) pro+ess o* mone"% and it provides a se+urit"
-" dea"in) t!e time distri-ution o* mone". Dou +an stop a +!e+. *or *ive da"s -e+ause o*
vis+osit". T!at ao,s "ou to ta.e more ris. in t!e present ,it! t!at +!e+. t!en "ou ,oud
ot!er,ise. Be+ause t!e vis+osit" o* t!e mone" ao,s "ou to !ave t!e +as!. 2&(3&#5
[CE]: T!ats interestin). No, Im t!in.in) o* aten+". T!ere are di**erent .inds o* vis+osit"%
t!ats a )reat ,ord to use. T!ere is sometimes a 2audio +uts5 imposed ; vis+osit". I mi)!t
+!oose to save mone"% in *a+t% I am a -it o* a !oarder% trut! -e .no,n. Its -e+ause I ,ant
*reedom% I ,ant t!e *reedom to t!in.. I +ant t!in. i* I am ,orried a-out t!in)s. So% I save m"
mone" -e+ause I need a sa*et" net ; a +om*ort 8one ; ,!ere I *ee I +an e<ist and -e ,!o I
am. 2&(3$(5
T!at aso !as !indered me ; I dont !ave a +ar% I ive a+tua" a ver" austere e<isten+e. But I
i.e t!is ,a" -e+ause no, I )et to 1ust 2audio +uts5. But *or some-od" ese% t!at ma"-e
+ompete" di**erent ; is t!ere an"t!in) interestin) to sa" a-out t!e !uman imposed aten+"
and t!en t!e ine**i+ien+ies% in *or e<ampe% t!e -an.in) net,or.> /!ere a +!e+. )ets !ed up%
*or e<ampe. T!ere is t!is p!enomenon in *inan+e% t!e" ta.e t!e mone" and t!e" !od "our
+!e+. *or t!ree da"s and t!en t!e" )o and )am-e it on t!e :OEEN% t!e ar)est tradin)
mar.et in t!e ,ord. 2&$34$5
[AA]: T!ats part o* t!e t!in) its rea" a-out turnin) -u)s into *eatures. And "ou see t!is
!appen a)ain and a)ain. T!e idea t!at "ou ta.e somet!in) t!at is a dea" imposed -" t!e
medium% -" t!e vis+osit" o* t!e s"stem and "ou use t!at as *eature% as a se+urit" +ontro. Dou
tr" to e<poit t!e vis+osit"% to use it to prote+t "ourse* a)ainst sudden and unanti+ipated
moves. And t!en "ou essentia" outsour+e "our se+urit" to t!e vis+osit" and t!at ma.es t!e
vis+osit" )reater. It aso ao,s peope to ta.e advanta)e o* t!e di**eren+es in t!e *o, o*
mone"% or in t!e vis+osit" o* mone" ; in t!e *orm o* ar-itra)e. 2&93#B5
I )ive "ou anot!er e<ampe ; in t!e ast de+ade% ,eve seen an e<posion in supp" +!ain
inte)ration. Supp" +!ain inte)ration% meanin) in t!e past% i* "ou ,anted to order #'%''' 1et
*an ,id)ets *rom Boein)% "ou ,oud !ave to do mont!s o* ne)otiatin) +ontra+ts. Toda"% in
man" s"stems% t!ese are +ompete" inte)rated -ased on Enterprise Eesour+e ?annin)% EE?
s"stems% ,!ere-" "ou +an put in a pur+!ase order% and "ou +an as. *or #%''' 1et *an ,id)ets
and itera"% ,it!in #' or #$ minutes% -o<es o* 1et *an ,id)ets are )ettin) oaded onto a tru+.%
some,!ere in a ,are!ouse and )ettin) s!ipped to "ou. 2&C3#(5
In t!e past% t!is pro+ess -" ta.in) mont!s +oud -e +ontroed% so t!e vis+osit" o* t!at pro+ess
a+tua" )ave some advanta)es% it )ave "ou opportunities *or operationa se+urit". T!ree or
*our peope !ad to tou+! it ; ea+! o* t!ose peope +oud inter1e+t t!eir o,n 1ud)ment% t!e"
+oud noti+e t!at somet!in) ,as ,ron)% t!e" +oud put a !od on it% t!e" +oud dea" it% and
t!e" +oud reverse it. 2&C34I5
/e too. advanta)e o* t!e vis+osit" to introdu+e t!ese +ontros. No,% t!ere are no +ontros.
No, ima)ine% *or e<ampe% "ou are runnin) a s"stem not proper" se+ured. A !a+.er )ets in%
and t!e" start orderin) #''%''' ,id)ets *rom ever" sin)e one o* "our suppiers. :i*teen
minutes ater% tru+.s are roin)% it doesnt matter i* "ou intended t!ese orders or not. A t!at
matters is ,!et!er "ou !ave t!e +redit to support t!em. It doesnt matter t!ese a+tua" do
arrive at "our *a+tor"% "ou +ant do an"t!in) ,it! t!em and "oure )oin) to ma.e a
su-stantia oss. Be+ause ten minutes a*ter t!is order ,ent t!rou)!% or someone mist"ped and
instead o* a #%''' ,id)ets% t!e" ordered a #%'''%''' ,id)ets -e+ause t!e" didnt reai8e t!e
unit num-er ,as a po,er to t!e t!ousand and not a sin)e unit. Sudden"% "ouve )ot a
miion ,id)et% -ut ten minutes ater% t!ese are roin) in a tru+.. 2&I3495
T!ere )oes t!e vis+osit" as a *eature. Be+ause ,e ,or.ed on it as -u) and ta.en it out o* t!e
s"stem% automated ever"t!in) ; no,% ,e !ave to reintrodu+e +ontros. /e !ave to put
separation o* duties% mutipe aut!ori8ations% !uman aut!ori8ations% -ut aso automati+
s"stems ; i.e a)orit!ms to +!e+. and see3 is t!is an order o* ma)nitude )reater t!an an"
order "ouve ever pa+ed -e*ore> 6a"-e pop up a ,arnin)3 are "ou sure "ou ,ant a miion
,id)ets> Be+ause "ouve never ordered a miion ,id)ets -e*ore. 2&B3'C5
So ,e !ave )one *rom -u)% to *eature% to -u) a)ain. And ,it! mone"% its t!e same t!in).
Jis+osit" o* mone" ,as a -u)% ,e made it *aster% and *aster% and *aster. But at t!e same time%
peope +ome to re" on t!e vis+osit" as a se+urit" me+!anism% are a*raid o* osin) t!at% and
t!e mutipe a"ers o* re+ourse t!at o**ers% and !ave not "et deveoped ne, me+!anisms ;
i.e% *or e<ampe% in +r"pto+urren+ies ; muti0si)nature% pi+. "our o,n +ounterpart" *or
es+ro, and vaidation. Ne, ,a"s o* doin) it t!at do not re7uire vis+osit" t!at +an operate at
t!at speed -ut are 1ust as se+ure or even more se+ure. 2&B3(I5
/e are in im-o at t!e moment. /eve ta.en a,a" t!e vis+osit" -ut ,e !avent a+tua" "et
-uit t!e me+!anisms to prote+t peopeO 2&B3$C5
[CE]: But ,e !ave to +odi*" it. /e !ave to as. t!e @,!at is it 7uestion.A /e !ave to sa"%
@/!at does it mean ; transmit vaue a+ross t!e ,ord>A One o* t!e t!in)s "ouve dra,n our
attention to is% m" a-iit" to e<e+ute at ran)e. 6" a-iit" to e<e+ute m" intentions at ran)e.
2audio +uts5 /!en I ,ant to move somet!in)% I p!"si+a" !ave to -e near to it% I !ave to -e
su**i+ient" stron) enou)! ,!ere I !ave to +oa-orate ,it! ot!ers su+! t!at ,e +oud move it
to)et!er. No,% i* I ,ant to move some +opper *rom =!ana and some pasti+ *rom Tai,an% to
C!ina and *" it !ere to London% a I !ave to do is -u" an i?!one and ,it! one +i+. on
Ama8on% and sudden"% Ive set a-out a +!ain rea+tion. O* +ourse% its not 1ust me% -e+ause
t!at in*rastru+ture ,oudnt !ave e<isted i* I didnt !ave a s!ared interest% ma"-e ,e s!oud
ta. a-out m" nie+es% as ,e. 6emeti+s. I ,ant somet!in) -e+ause "ou ,ant somet!in).
24'3(C5
T!at t!en mani*ests to -rin) a-out a ,ord ,!ere ,e are a en)a)ed in t!is a+tivit" o*
+onstant movement. And "es% it ma.es sense to us -e+ause ,ere em-edded inside t!e t!in)
itse* -ut ,!en "ou ta. a-out vis+osit"% I start t!in.in) o* musi+. I start t!in.in) o* +aden+es.
/!" do +ertain t!in)s )et +o))ed up -e+ause its aso an opportunit" *or *raud% too> /!en
"ou )et ine**i+ien+ies in t!e s"stem% it provides an in+entive *or some-od"% some,!ere to
ta.e advanta)e o* t!at ine**i+ien+" in t!e s"stem. Lets *a+e it ; it +an eit!er !ep or !inder%
+an eit!er -e moved -" *ear or -e moved -" ,ant o* a -etter ,ord% ove. Im meanin) t!at in
a ver" )enera ,a". T!ere are rea" -asi+ motions +an rea" move us and one is *ear% t!e
ot!er is ove. And t!e" eit!er 1ust ,ant to !ep or t!e" ,ant to !urt. And t!ats !o, I *ee
a-out t!e modern -an.in) s"stem. T!ese peope are +o8" and t!e" see. to ma.e a pro*it *rom
t!e ine**i+ien+ies% t!at musi+ I ,as ta.in) a-out% in our so+iet". I t!in. t!e" dont .no, !o,
to as. *or !ep. 24&3'I5
One o* t!e t!in)s ,e !ave to -e +are*u ,it! *rauds is ,!at t!e" stea *rom us is a+tua" our
time and ,!at t!e" punis! is t!e !ope*u. Loo. it ri)!t no, ,!at is !appenin) ,it! 6T=o<
; "ou !ave a mi+ro+osm o* t!e ma+ro+osm% a mirror ima)e% a re+ursive ima)e o* ,!at is
)oin) on out t!ere in t!e ,ord at ar)e !appenin) ,it!in t!e Bit+oin sp!ere on a miniature
s+ae. /!ere ,e !ave a CEO at is prevari+atin) ; "es% !e is usin) t!e trut! to !urt peope
-e+ause !e !asnt ied. I* "ou oo. at t!e press reeases ver" +are*u"% t!e" are ver" ,e
,orded. He is ver" +are*u not to ie. In doin) so% !e .eeps "ou up a ni)!t ,aitin) *or t!e
ne,s. He a,a"s reeases at t!e ver"% ver" ast minute. T!ere is itte to no eviden+e t!ere is
an"one ese is ,or.in) *or t!is +ompan"% ot!er t!an t!is )u". 2443##5
T!e vi+tims in a t!is% t!e +ustomers% are +in)in) on to !ope. T!e" ,ant to -eieve
ever"t!in) is )oin) to -e OK% t!at t!e"re )onna )et t!eir mone" out. Gtimate"% t!e t!e*t is
sti !appenin). I dont .no, i* t!e +oins are t!ere% I dont .no, an" more t!an an"-od" ese%
-ut in m" opinion% t!e t!e*t is ta.in) pa+e ri)!t -eneat! "our e"es as "ou ao, "ourse* to
-e +on+erned. 24434$5
:rauds ta.e a,a" is our attention. T!ats ,!at *ues t!em. T!e" aso dont .no, !o, to !ep
; ,!en t!e" move% not!in) +omes o* t!e movement. T!e"re stu+. in ne)ative +"+es o*
-e!avior. T!ere is no !ope *or t!em ; t!e" !ave t!e desire ; t!e" dont !ave t!e !ope to
move out o* it. I do t!at -e+ause a ot o* peope as. t!e 7uestion% @/!at is p!iosop!" )ood
*or>A T!e t!in) is ; "ouve )ot to .no, ,!en to stop t!e t!ou)!t. Douve )ot to .no, ,!en
to sa"% @OK% ets step -a+. and ,!at does t!is mean>A 24(3#95
/!at t!is means is% i* "ou ,or. in a -an. or "ou ,or. *or a )overnment or)ani8ation% "ou
need to start as.in) "our -oss some !ard 7uestions. Dou need to start mana)in) up,ards. And
i* "ou dont i.e t!e ans,ers% and i* "ou *ee i.e "our time is -ein) ,asted% i* "ou *ee i.e
t!e pra+ti+a de+isions "ou are -ein) *or+ed to ma.e on a da" to da" -asis are not !ep*u to
so+iet" as a ,!oe% to t!e ,ord as a ,!oe% to ot!er peope ; "ou need to )et up and turn
around and ,a. out t!e door% pre*era-" ,it! no e<panation ,!atsoever. Be+ause t!e more
time "ou sit t!ere% t!e more "ou are *a+iitatin) t!em. Dou are a+tua" *uein) it. /!en "ou
are doin) is "oure punis!in) t!e inno+ent. 24(3$$5
A"n Eand !as a 7uote;Im not a -i) *an o* A"n Eand% -" t!e ,a" in +ase an"one ,onders%
-ut s!e did !ave a )reat 7uote ,!ere s!e said% @/!en "ou pit" t!e *rauds% ,!at "ou end up
doin) is punis!in) t!e inno+ent.A /!en "ou punis! t!e inno+ent% "ou set out a +ondition t!at
ne+essitates +ommuni+ation and +oa-oration. T!e reason% at t!e moment ; t!e eites% ,ord
po,er% me)a-an.s ; t!e reason t!e"re in +ontro is t!e" +an +oa-orate -etter t!an t!e
peope on t!e )round. In*ormation in t!eir s"stems traves mu+! more e**i+ient"% peope
understand ea+! ot!er -e+ause t!e"Pre -rou)!t to)et!er -" t!e )reed motive. T!is +onstant
need to !oard. ?at!oo)i+a desire to !ave more and more o* somet!in). 24$3$'5
I *ee i.e ,e need to stop 2inaudi-e oo.in) at>5 t!e -an.s and 1ust start oo.in) at
ourseves and our roe in it. /!at +an I do no,> Never mind ,!at !as !appened. T!ere ,i
-e pent" o* time ater% on+e ,e set up our ne, paradi)m to oo. -a+. and !istorians +an )o
t!rou)! t!e +orresponden+e and ,or. out ,!o did and ,!en. :or no,% t!e on" 7uestion t!at
rea" matters ; is ,!at "oure )oin) to do a-out it. And t!at is ,!at% I t!in.% ,e +an ta.e
a,a" *rom t!ese o-servations. 2493&$5
[Music] 2493(#5
[Adertise!ent]
Kr"ptoKit is t!e ,ords *irst +!rome -ro,ser% its t!e easiest% *astest Bit+oin ,aet pa"ment
s"stem. /it! a simpe one0+i+. insta it ta.es 1ust se+onds to )et "our ,aet setup and
-e+ause Kr"ptoKit *inds t!e address and pa"ment *or "ou% t!ere is no more *ussin) around or
ta- s,it+!in). Kr"ptoKit is more t!an 1ust a ,aet% it +omes ,it! a preoaded ?=? en+r"pted
so+ia net,or.% and ne,s *eeds *rom Eeddit and =oo)e as ,e as up0to0date *rom
e<+!an)es. :ina" Kr"ptoKit dire+tor" ao,s "ou to ma.e t,o 7ui+. pa"ments ,it! an" o*
t!e Bit?a" mer+!ants% on+e "ou insta Kr"ptoKit "ou ,ont need an"t!in) ese.
:or more in*ormation or to do,noad Kr"ptoKit visit .r"pto.it.+om
T!e Bit=ive :oundation is t!e non0pro*it +!arita-e )ivin) or)ani8ation% evera)in) t!e
po,er o* t!e Bit+oin +ommunit" to improve pu-i+ !eat! and t!e environment ,ord,ide.
Hep us demonstrate t!e si)ni*i+ant impa+t o* Bit+oin in addressin) t!ese +riti+a issues on a
)o-a s+ae. Support internationa )ivin) in Bit+oin. ?ease visit our ,e-site at
,,,.Bit=ive:oundation.or). T!ats ,,,.Bit=ive:oundation.or). 24C3$$5
[AA]: Its !ard to see t!e trut! o* "our a+tions ,!en "our saar" depends on not seein) t!em.
/!en t!e +onse7uen+es o* t!ose a+tions are so *ar removed *rom t!e moment o* de+ision.
Ive -een t!ere% and its not an eas" pa+e to -e -e+ause it doesnt !appen sudden"% it
!appens ver"% ver" so,". Dou start o** ,or.in) in an environments t!at "ou *ind !ope*u
and positive% t!en )radua" t!e priorit" s!i*ts *rom -e!ind "ou. =radua"% "ou -e+ome more
and more a,are o* t!e pra+ti+a and t!e rea vs. T!e stor" and t!e m"t! or t!e promise. And
t!en as "ou do so% t!e +o)nitive dissonan+e in+reases and it mani*ests. It mani*ests ,it!
sadness% it mani*ests ,it! depression% it mani*ests ,it! an<iet"% and t!en at some point ;
sure% a-soute"% es+apism. A *orms o* es+apism% ,!et!er t!rou)! su-stan+es% t!rou)! tr"in)
not to t!in.% t!rou)! sports% t!rou)! TJ% t!rou)! ,!enever. And t!en at some point% t!e
+o)nitive dissonan+e -e+omes eit!er over,!emin) or "ou *ind a ,a" to maintain permanent
es+ape t!rou)! num-in) "ourse* to ever"t!in). I dont t!in. t!is sustaina-e. 24B3&I5
[CE]: Its !ard ,or. -ein) in denia> 24B3445
[AA]: Its ver" !ard ,or. to operate in an environment at some eve "ou .no, is in
+ompete +ontradi+tion ,it! "our prin+ipes. /!ere "our idea o* "ourse* as a )ood person is
-ein) +!aen)ed ever" sin)e da" ; -" t!e )impses "ou )et o* t!e +onse7uen+es o* "our
a+tions unti one da" ; "ou +ant sustain it an"more. In m" +ase% I !ad a -riiant moment
,!ere I ,as as.ed to +ensor m" pu-i+ spee+! in order to )et a +ontra+t. And at t!at moment%
it a .ind o* +r"stai8ed% t!en I reai8ed t!rou)! repeated +ompromises I !ad m"se* *eedin)
t!e ver" -east I +oudnt support in prin+ipe. And I !ad to do a dramati+ +!an)e in m"
priorities and a+tions. Its ver" di**i+ut% even *or peope ,!o are a,are% and most peope
!ave ot!er t!in)s to do and t!en I t!in. a-out t!ese t!in)s ; t!e" !ave pra+ti+a matters...
2('3(#5
[CE]: /e% t!e" t!in. t!e" doO 2('3(&5
[AA]: /e% t!e" t!in. t!e" do ; "es% its ver" eas" to )et distra+ted -" t!e minutia o* i*e on
a dai" -asis and not pa" attention to ,!ere "oure )oin) and t!en #' "ears !ave passedO
2('3$95
[CE]: T!ats a ver" )ood ,a" o* puttin) it. Dea!% I ,anted to sa"; denia is an i)noran+e.
Its .no,in) ,!at t!e trut! is and a+tua" +!oosin) not to see it. Doure a-soute" ri)!t% t!at
,e are amost num-ed% parti+uar" -" t!e ma1or e+onomi+ +aamities o* ate. Birt! -e)ins
,it! ne)ation. It -e)ins ,it! t!e prose+ution o* t!e past and a !ope o* ,!at +oud -e% o* ,!at
+oud +ome out o* it. A !ope ; past ,oud -e remem-ered di**erent"% I t!in.. T!e past
!asnt *inis!ed !appenin) in a sense. /e a,a"s !ave time to re0+onte<tuai8e and re0
understand it in ne, ,a"s. It ,asnt even t!at ne,. 6a"-e ,e s!oud )o over itte -it% a-out
,!at t!is *undamenta" is ; it is a )o-a diao)ue ,it! t!e memor". It is a 2audio +ut5 se*0
sta-ii8ed +onsensus and its -a+. ;utimate" i* "ou are oo.in) *or an" .ind o* -a+.in) or
intrinsi+ vaue ; i* "ou must ; its -a+.ed a)ainst -est understandin) ,e !ave o* t!e a,s
o* p!"si+s. /e ,oudnt !ave +omputers at a% i* it ,erent *or t!e +on+ept revoution around
t!e #B&'s. ?!"si+s is a-out as.in) 7uestions a-out stran)e p!enomenon in our ,ord. Its
a-out -uidin) patents t!at ao, us to -e a-e to +ir+umnavi)ate our ,ord ,it!out *ain)
over% ,it!out -e+omin) disorientated ; -e+ause it -uit rues. It sa"s I +an ma.e a predi+tion
t!at is determinist ; i* I put t!is input in% Im )oin) to )et t!is output. T!en% o* +ourse% ,e
!ave to move up to t!e so*t,are a"er. T!e so*t,are a"er !as to tou+! do,n on t!e p!"si+s at
some point. And t!en "ou !ave to +ome up ,it! some @i*A statements and "ou !ave to +ome
up ,it! some +onditions. Sa"% @I* t!is% t!en t!is.A And t!ats ,!at ,e ,ere 1ust sa"in)% I
t!in.% ,!en ,e ta.ed a-out vis+osit" o* mone"% a *o, o* +apita. Be+ause its not 1ust
mone"% its aso +apita and t!e *o, t!in)s in our ,ord. At some point% it !as to meet ; I
t!in. ,!ere a ot o* peope sear+!in) *or intrinsi+ vaue )et stu+. ; is t!e" *ai to see ; t!e"
dont )et as *ar as pa)e t!ree o* t!e Bit+oin paper *or a start% ,!i+! is ,!ere t!e ma)i+ starts
;t!is is ,!ere !e ta.s t!e appi+ation; I dont !ave it in *ront o* me% I didnt +ome t!at
,e prepared ; !e starts to ta. a-out t!e appi+ation o* proo*0o*0 ,or.. And !e -rin)s
to)et!er t!e p!"si+s and t!e mind. He -rin)s to)et!er t!e needs o* t!e mind ; t!is need *or
possi-iities in t!e *uture; t!e need *or *reedom. Eman+ipation% i.e *reedom o* movement
t"pe *reedom. And !e does it -" su))estin) t!e idea and !es 7uite tentative a-out it. Satos!i
Na.amoto is 7uite tentative ; !e doesnt ,ant to sa" *or sure% t!at re,ardin) some-od" ,it!
a to.en on top o* t!e net,or.% +aed a Bit+oin; ,i ensure t!e a+tors ,i -e!ave in an
!onest ,a". Be+ause "ou +oud eit!er de*raud t!e net,or. or "ou +an -e!ave !onest" and
app" more po,er to support t!e ro-ustness o* t!e net,or. and arran)e *or t!e re,ard t!an
*or "ou to% *or e<ampe% te "our i*e stor" on t!e net,or. *or 2inaudi-e vie, to>5 $#Q or
+ompromise in anot!er ,a". He is not entire" sure i* "ou oo. at t!e an)ua)e ver" +ose"%
!e sa"s it @ou)!t toA. He is 7uite e7uivo+a ; !e ,ants to eave !imse* some room ater on
; ma"-e ,e s!oudnt ta.e t!e !as!rate *or )ranted ; -ut *or no,% t!is is a )ood enou)!
mode. And ,!at t!is is ; trut! is repetition. Or at east% trut! is as )ood as "ou )oin) to )et%
its repetitionO. 2((3($5
[AA]: So ets ta. a itte -it a-out t!e trut! -e!ind t!is -e+ause anot!er% I t!in.% ver"
interestin) t!in) a-out Bit+oin. /!en "ou *irst oo. at Bit+oin ; its +urren+ies% its mone"% its
di)ita mone" ; t!at rea" misses t!e point. T!en "ouve )ot a net,or. and t!e
impementation ,!i+! is essentia" a pie+e o* so*t,are. Be!ind t!at "ou !ave a +ommunit"
o* peope. But under"in) a o* t!is% is t!e -o+.+!ain. T!e -o+.+!ain te+!noo)". As a
te+!noo)" its more use*u to t!in. o* it t!e -o+.+!ain as a desi)n pattern. Its a ne, desi)n
pattern *or distri-uted s"stems. Its a desi)n pattern t!at ta.es a traditiona mode o* patterns%
+on+entri+ +ir+es around a route o* trust and aut!orit"% ,it! in+reasin) a<is +ontro as "ou )o
out. And motes or ,as% set around t!e +entra aut!orit" and inverts it +ompete". It a+tua"
ma.es t!e aut!orit" reside at t!e ed)es o* t!e net,or. t!rou)! t!is pro+ess o* +oa-oration. It
ma.es t!at aut!orit" +umuative. But t!e more peope t!at parti+ipate% aut!orit" is a+!ieved at
ever !i)!er rates ,it! ever" passin) -o+.% ,it! ever" in+rease in t!e !as!in) po,er% ,it!
ever" in+rease in t!e +onstituents o* users. Net,or. e**e+t +reates aut!orit" and trust and
!i)!" di**used distri-uted manner% ,!i+! aso ma.es it di**i+ut to e<poit -e+ause t!eres no
sin)e t!in) "ou +an ta.e do,n. T!is narrative is ver" di**i+ut *or peope to understand
primari" -e+ause aut!orit" !as never -een di**used. Aut!orit" !as a,a"s -een +entrai8ed in
most s"stems. It is a mode t!at !as ,or.ed ver" ,e% -ut is a mode t!at is rooted in
p!"si+a po,er% in *or+e. It is t!e out+ome o* t!e +entrai8ation o* p!"si+a po,er. 2(93$#5
In de+entrai8ed s"stems% i.e Bit+oin% "ou invert t!at trust mode and ,!ere% previous" "ou
!ad to trust ever"one ,!o !ad a++ess ; and t!ere*ore ver" *e, peope +oud !ave a++ess. In
a de+entrai8ed s"stem% "ou trust no one ; "ou trust t!e desi)n pattern% "ou trust t!e mat!.
Dou trust t!e se*0adaptin) s"stem to re+!e+. e7uii-rium states ,!ere re,ard or +onsensus is
)reater t!an re,ard *or *raud. And in t!at e7uii-rium% t!e s"stem is not on" se*0sustainin)%
its aso +ompete" open ; "ou dont need a<is +ontro% "ou dont need se+re+". Dou dont
need vettin) ,!en "ou trust no one -ut t!e desi)n pattern. Dou +an ao, ever"one to a++ess.
It +ompete" inverts t!e trust mode and it +reates t!is ne, environment ,!ere% t!rou)! t!is
di**use aut!orit"% "ou +an esta-is! trust a+ross massive s+ae ,it! massive parti+ipation.
2(C3$95
But !eres t!e pro-em ; "ou +ant e<pain t!at. Its ver" di**i+ut to e<pain t!at narrative
-e+ause peope intrinsi+a" or intuitive"% a+tive" asso+iate aut!orit" ,it! +entrai8ation.
Be+ause t!at is t!e on" aut!orit" mode t!e" !ave ever seen. So ,!en "ou sa" ; Bit+oin !as
no +enter% t!e" ,i sa"% @OK% I understand !o, it !as no +enter% -ut ,!o runs it>A It doesnt
!ave a +enter% @/!o +ontros it>A It isnt +ontroed -" an"one% its rea" a +oa-orative
*un+tion. @O.a"% -ut +oud someone ta.e over t!e +ontros>A /e% t!ere are no +ontros to
ta.e over. T!ere is no +enter or an" evers o* po,er at t!e +enter% t!at someone +oud ta.e
over. 2(I3((5
And "ou )o into t!e +ir+uar dis+ussion ,ere peope are )raspin) *or t!e +entra aut!orit".
/!et!er t!ats a s"stem t!ats runnin) it% a ever o* po,er t!at +an -e pued -" someone% or
even an aut!orit" *i)ure ; ,!o is Satos!i> And ,!at do "ou mean it doesnt matter ,!o
Satos!i is; o* +ourse% it mattersK /!at are t!e motivations o* t!e +reator o* t!is t!in)> T!ats
a ver" interestin) 7uestion -e+ause t!at is a 7uestion -orn o* a +entrai8ed aut!orit" mode.
Be+ause ,!en aut!orit" is derived -" t!e +reator o* t!e s"stem% ,!en aut!orit" is derived -"
,!o issued t!e +urren+" ; not ,!o uses it% t!en t!e motives o* t!e issuer matter -e+ause t!e
issuer sti !as t!eir !ands on t!e evers o* +ontro. T!e motives o* t!e issuer matter ver"
mu+!. T!e trust,ort!iness o* t!e issuer matters -e+ause t!e" +an e<ert +ontro into t!e *uture
o* t!at s"stem. And ever" +entrai8ed aut!orit" s"stem ,eve .no,n re7uires us to trust a
+ertain aut!orit". T!e root o* trust is sittin) at t!e +enter and so ,it! Bit+oin% "ou pu -a+.
t!e +urtain. 2(B3$C5
[CE]: T!e 7uestion doesnt ma.e sense to as. ; ,!o is in +!ar)e> Be+ause ever"one is in
+!ar)e. 2$'3'45
[AA]: But t!at is an unsatis*a+tor" ans,er. Be+ause t!e +onte<t in ,!i+! t!e 7uestion is
as.ed is so steeped in +ertain assumptions% a-out !o, aut!orit" and trust ,or.s. Be+ause t!e
on" t,o modes ,e !ave seen so *ar are eit!er aut!orit" vested in a sin)e individua or
aut!orit" vested in a !ierar+!i+a or)ani8ation% desi)ned to distri-ute t!at aut!orit" t!rou)!
+!e+.s and -aan+es% impemented t!rou)! pro+ess. So ,e use or)ani8ationa and pro+ess
toos to +ontro aut!orit"% to di**use it. /!et!er t!at is t!e G.S. +onstitution% +reatin) a t!ree
tier )overnment or t!ree part )overnment% ,it! +!e+.s and -aan+es. /!et!er its a +orporate
)overnan+e -oard% ,!ere a -oard o* dire+tors vies *or po,er a)ainst t!e +!ie* e<e+utive
o**i+er to +reate -aan+e. Essentia"% to un0vest t!e individua and instead% to vest t!e pro+ess
,it! a !i)! eve o* trust -e+ause t!e pro+ess isnt not as easi" +orrupti-e. 2$#3'I5
And t!en ,e !ave ta.en t!is pro+ess a step *urt!er% ,it! vestin) aut!orit" in t!e desi)n
pattern% ,e are di**usin) aut!orit" +ompete"% unti t!ere is no +enter ; not even an
or)ani8ation. T!ats a ver" di**i+ut eap *or peope to ma.e. Its 1ust as di**i+ut as it ,as in
t!e midde a)es *or peope to t!in.% @/e% i* ,e )ive up on t!e .in)% i* ,e ta.e a,a" ro"at"
; !o, do ,e ma.e de+isions> Ho, +an ,e possi-" ma.e a de+ision i* ever" peasant !as an
opinion> Ho, +an ,e possi-" +reate so+iet" at s+ae ,it!out a .in)>A It ,as ver" di**i+ut
*or peope to understand. A demo+ra+" 1ust ,asnt !ampered -e+ause t!e .in) didnt ,ant it.
It ,as aso !ampered% primari" !ampered% -" t!e peasants t!emseves -e+ause @t!is idea ;
sounds prett" ,eird to me. At east t!at )u" up t!ere in t!e +aste% I .no, ,!o !e is% I .no,
,!ere !e ives and i* !e )ets too out o* +ontro% ,e mi)!t a+tua" !ave one o* !is reatives
.i !im and ta.e overA% as usua" !appened. T!is idea o* di**use aut!orit" )iven to t!e
peope% sounds prett" stran)e and radi+aO. 2$&3&95
[CE]: Hemo+ra+" means peope in po,er to)et!er. Jer"% ver" +ose" modeed to impement.
It ,as an innovation ; Ceist!enes% an an+ient =ree. ruer or at east t!e )u" ,!o put in t!e
re*orms; !e is t!e one ,!o )ets t!e +redit. He did it in response to t!e mo-. T!is isnt
)overnment *ormed in a +assroom% out o* t!eor" ; t!is ,as out o* ne+essit" and ,!at it did
,as )ive t!e peope o* At!ens ;an+ient At!ens; a sense o* autonom" and a sense o* se*0
+onne+tedness in a ,a"% ,e oo. -a+. at no, and 1ust to )o in a,e. T!is is one o* t!e most
su++ess*u +ivii8ations in t!e !uman stor" and its remar.a-e t!an it )ot ost as a s"stem o*
)overnan+e *or so on) and no, ,ere )ettin) -a+.. 2$43&$5
T!is !as a to do ,it! t!e reations!ip -et,een t!e sophos and t!e demos ; t!e e<perts and
t!e peope. /!en I !ave some in*ormation t!at "ou dont !ave t!at "ou need; I am
en+um-ered% I !ave a responsi-iit". Ho I use it *or m" o,n private ends or do I use it to !ep
"ou> Its a +!oi+e I !ave to ma.e. I dont !ave a +!oi+e a-out t!e +!oi+e% i* "ou i.e. Even i*
I +!oose to a+t dis!onest"% I sti )ot to ive ,it! t!at trut!% m"se* ater on. I dont t!in. ,e
+oud a,a"s )et a,a" ; t!is is somet!in) t!e +omes up and in Hosto"evs."s Crime and
Punishment ; ,!en ,e +ommit our +rimes ,e pa" *or t!em t,i+e ; on+e in t!e punis!ment
so+iet" )ives us and a)ain% o* +ourse% m"se* ; I punis! m"se* *or t!e t!in)s I !ave
,ron)ed. 2$(3#C5
But I t!in. ,e 1ust need to -e +are*u ,e dont ta. t!is a-out +entrai8ation% de+entrai8ation
+ontinuum into a mora issue. /!at ,as mora" repre!ensi-e at t!e -an.s ,as not !o, t!e"
or)ani8ed t!emseves% per se% -ut t!e a+tions o* t!e individuas t!emseves. Hemo+ra+" is an
e<pensive s"stem to impement% ver" +ost"% so its su-1e+t to t!e avaia-iit" o* resour+es
,!et!er "ou +an -e *u" de+entrai8ed. /!o ,ere t!e )ood -an.ers% ,!o ,ere t!e peope
,!o 2audio +uts5. 2$(3$C5
[AA]: Its a matter o* s+ae% C!ris. T!ats t!e -ottom ine. In t!at% i* ,e oo. at -an.s toda"
and ,!at t!e" are doin)% is t!e" are *aiin) to s+ae trust. Be+ause t!e" are vunera-e to ar)e
s"stemi+ e**e+ts. But t!at is somet!in) t!at !appened over time. I* "ou )o -a+. to t!e #9
t!

+entur" ,!en "ou see *irst +ommer+ia institutions evove *rom out o* t!e Hut+! East India
Compan" and t!e Britis! East India Compan" and a o* t!e e<peditions t!at ,ere !appenin).
T!e +reation o* t!e modern +orporation% t!e +reation o* t!e modern open -an.in) s"stem% t!e
+reation o* t!e modern sto+. mar.ets and t!e a-iit" *or individuas to invest in +orporations%
,!i+! up to t!en% ,ere ro"a +!arters. T!e investors ,ere t!e aristo+ra+" ; and on" t!e
aristo+ra+". It ,asnt a-out t!e a+. o* mone"% it ,as a-out t!e s+ae ; t!e a-iit" to s+ae
t!ese institutions. So i* "ou oo. at -an.s t!en% t!e" too. somet!in) t!at ,as on" t!e
purvie, o* .in)s and t!e" )ave it to a -iion% ma"-e t,o -iion peope% !ave t!e e+onomi+
toos t!at on" .in)s !ad in t!e #9
t!
+entur". 2$93#I5
So -an.in) ,as a !u)e e7uai8er. It ,as a s"stem o* e7uai8ation and merito+ra+". T!e
modern +urren+ies% t!e same t!in). T!e modern +orporation% t!e same t!in). A o* t!ese
,ere s"stems t!at *attened po,er ; t!at too. it out o* a p"ramid stru+ture and s7uas!ed it.
But ,!at !appens over time> As t!e -ase o* t!e s"stem )ets ,ider and ,ider and ,ider% it
starts oo.in) i.e a p"ramid a)ain. It *ais t!e s+ae. 2$93$'5
And ,!at ,e see no, is t!e e)aitarian moves o* t!ese s"stems ; or t!e e)aitarian impa+t
o* t!ese s"stems )radua" diminis!in) over time unti it starts operatin) +ontrar" to
e)aitarian prin+ipas and starts re0+on+entratin) po,er. Its a *aiure to s+ae t!e s"stem. Its a
*aiure to ma.e t!e p"ramid *at% so it starts )ettin) pointier and pointier. 2$C3&#5
/!at Bit+oin does is% simp"% uno+.s t!e ne<t eve o* s+ae. Li.e a+!ievement uno+.ed.
Dou mana)e to )o *rom t!e one t!ousand .in)s to t!e one -iion peasants eve o* e+onomi+
s+ae. Cr"pto+urren+ies ,i ta.e us *rom t!e one -iion peasants to t!e seven -iion !uman
eve o* s+ae. Be+ause ,e +an s+ae t!em -etter. And at some point% t!e"re aso )oin) to *ai
to s+ae and ,e are )oin) to need to disrupt t!at p"ramid% too. And t!at is t!e endess +"+e
o* +!an)e. T!at is t!e entropi+ nature o* t!e universe. T!e t!in)s t!at start o** as )reat
e)aitarian *or+es% end up -e+omin) po,er s"stems. 2$I3'$5
[CE]: T!ats a )reat t!esis t!ere. Des ; its a-out understandin) t!e sma in reation to t!e
-i). T!is is a-out -rin)in) to)et!er t!e pu-i+ and private interests. Dou !ave t!e o+a private
interest o* 2audio +uts5 t!en "ou !ave t!e pu-i+ interest ,!i+! needs sta-iit"% needs
+onsensus% needs a *orm o* a)reement. T!ats ,!at t!e -o+.+!ain net,or. does. :or me%
t!ats ,!at I *ind important a-out it and t!ats ,!" I t!in. it !as intrinsi+ vaue. 2$I34$5
Dou ta.ed a-out s+ae ; ma"-e t!at s!oud -rin) us on to t!e so+io e+onomi+ impi+ations.
2inaudi-e5 A trustess net,or. doesnt rid us o* t!e need *or trust% on t!e +ontrar"% it a+tua"
ma.es trust more important and in parti+uar% "ou s!oud pro-a-"% and "our isteners ;
s!oud oo. up t!e idea o* @stran)er intera+tionA in so+ioo)". T!ese are t!e +!an+es ,e ta.e
on ea+! ot!er -e*ore ,e .no, ea+! ot!er% t!ose .ind o* @t!in si+eA% i* "ou ,i ; t!at is
anot!er .e" ,ord. /e a ,a. around ,it! a ver"% ver" t!in si+e o* in*ormation o* t!e ,ord
and "et% I sti -eieve ; Ive -een !ere *or t!ree de+ades% and Ive done prett" ,e. No% I
dont !ave ver" mu+! in*ormation on ,!at is )oin) on. 2$B3#I5
[Music] 2$B3$95
[CE]: So t!is @stran)er intera+tionA ; it turns out "ou put up a si)n in t!e street% it sa"s%
@/i pa" R# to ta. to a +ompete stran)er>A ?eope do it. And t!e" dont even do it *or t!e
mone". 6one" 1ust sa"s% @Its o. to do t!isA "ou .ind ,ant to do it% -ut it )ives "ou an
e<+use. No,% ,e are at t!e so+ioo)i+a a"er ; ,e +an ta. a-out t!e need *or movement%
t!e need *or +!an)e. Not 1ust at t!e eves ,e ta.ed a-out aread". But aso% "ou mi)!t need
to +!an)e t!e peope "ou !an) out ,it!. In order to +reate t!is ne, -usiness t!at "ouve -een
dreamin) o*% "ou mi)!t need to meet some-od" ne, t!at +an add somet!in) to "our i*e t!at
!asnt !appened -e*ore. 2#3''34B5
Aso% t!e so+ioo)i+a a"er ; ets ta. a itte -it a-out memeti+ desire ; I *ind Bit+oin
vaua-e ; Ive spo.en to !undreds% i* not more t!an a t!ousand peope a-out Bit+oin ast
"ear% *rom a-out :e-ruar" on,ards ; I )ot rea" immersed in it. 2#3'#3''5
It starts ,it! intentions. T!e" ,ant to .no, ,!" "ou are tein) t!em a-out Bit+oin. Be+ause
i* t!ats )onna +!an)e ever"t!in) ; i* sudden"% @O! no% I !ave to t!in. a-out m" mone"%
no,> I t!ou)!t I +oud re" on t!at.A t!e"re )onna ,ant to .no, ,!" and t!e" are )onna
,ant to .no, ,!ats in it *or "ou. I* I a)ree% ,it! "ou% t!at t!is s!oud -e vaua-e as ,e ;
i* I a" m" interests ,it! "ours ; ,!at do "ou )et out o* it> And i* "ou )et somet!in) out o*
i*% am I o. ,it! t!at> And ,!at do I )et out o* it> And ,!at does ever"-od" ese )et out o* it>
2#3'#3445
And "ou +ant even ; its di**i+ut% t!is issue o* manipuation ; and I mean% ps"+!oo)i+a
manipuation. Its ver" di**i+ut% I t!in.% ,!en peope ta. a-out Bit+oin to ma.e it sound i.e
t!is is )ood *or ever"-od". I t!in. t!at !as somet!in) to do ,it! t!e de*ationar" e+onomi+s
t!at are -uit into it. A ot o* peope sa"% @/e% i* its de*ationar"% isnt ever"t!in) )oin) to
)et 2-an.5 up>A T!e" dont understand% sure" ,e need more mone"% -ut ,!at t!e" dont
understand is t!e +on+epts o* in*init". T!e" dont understand t!e di**eren+e -et,een in*init"
and eternit". Eternit" is t!at ,!i+! !as no dire+tion% it 1ust is ; 1ust as mu+! inside as
outside% it doesnt .no, -oundaries% doesnt !ave imits. 2#3'&3&'5
But in*init" +an ast *orever -ut it +an aso !ave a dire+tion. So "es% "ou +an ta.e an oun+e o*
siver and "ou +an .eep dividin) it up into in*inite" sma pie+es so on) as "ou +an identi*"
and dis+ern ever" pie+e o* siver ta.in) o**% t!ats *ine. As on) as ea+! one is e7ua%
*un)i-e% t!e" +an -e e<+!an)ed *or t!e same amount. A -it+oin is ,ort! a -it+oin a,a"s ;
its o.. But "ou are sti e*t ,it! t!e *inite oun+e t!at "ou started. And t!at is t!e important
point% "ou )et an in*init" and "ou )et vaue +reation ,it!in t!e +urren+" supp" t!ats sti tied
to a *inite ,!oe. 2#3'43'(5
/!en "ou start printin) more mone"% ,!en "ou -rea. t!at promise; t!e *i<ed issuan+e
promise "ou made at t!e door ,!en peope +ame in and "ou said t!ere ,as on" )oin) to -e
&# miion +oins or ,!atever "our tota supp" ,as )oin) to -e ; ,!at "ou are doin) is "ou
are ta.in) a t!e ,or. t!at peope did in t!e mar.et ; a t!e pri+e dis+over"% a t!e pri+e
+omparison sites "ou ,ent to ; t!ats ,or.. t!at ,as minima -ut ,as ,or. non t!e ess.
Dou are providin) vaue and t!en t!e +entra -an. sa"s% @Lets produ+e anot!er siver +oin.A
No,% t!is is ,!ere t!e t!e*t +omes in% ,!ere t!e *raud is. Be+ause no, ,!at "ou are doin) is
ta.in) a t!e ,or. t!at t!e peope did on t!e )round% out t!ere in t!e ,ord ; pri+e
dis+over" and t!en "oure +!oosin) to )ive t!is asset a ne, vaue e<a+t" to "our *riends%
presuma-" "oure )oin) to )ive it to t!e -an.sters% "oure )oin) to )ive it to "our *riends in
)overnment. Its nepotism ; "oure )oin) to )ive it to t!e peope t!at are +osest to "ou.
2#3'(3''5
And as a resut% t!e"re )oin) to ; *or a s!ort time ; en1o" some o* t!e -ene*its o* t!is ne,
oun+e o* siver. :or a ,!ie% it ,i sti !ave t!e properties o* t!e vaue t!at ,as )enerated in
t!e *irst oun+e. But over time% peope ,i -e)in to reai8e ; a+tua"% t!is mone" is more
a-undant t!an I t!ou)!t it ,as. And an",a"% its not t!e mone" I ,ant ; its ,!at it -u"s
me. 6one" doesnt ,ant to )et too vaua-e% -e+ause t!en "ou ,ant it too mu+!% it +ant ose
its vaue too 7ui+." eit!er% -e+ause t!en peope start misao+atin) t!eir mone". T!e" start
puttin) it into t!in)s t!e" dont rea" need% 1ust to preserve t!e +apita. 2#3'(3495
T!is *raud% is ver" su-te ; in The Republic% ?ato -rin)s up t!is +ommonait" -et,een
r!etori+ and reativism. /!at I *ind ,!en I )o out and I tr" to ta. to peope a-out Bit+oin% I
usua" start it *rom t!e issues t!at a**e+t t!em t!e most. So i* I am ta.in) to a -ar or
somet!in)% I -rin) up a notion o* t!e *ees on t!e net,or. and t!e +!ar)e-a+.s. And ,!at
"ou tend to *ind ;,!at "ou -eieve and ,!at I -eieve ;its a reative% isnt it> Dou +oud
1ust use +ever an)ua)e ; t!is is t!e r!etori+ian. Dou +oud use 1ust +ever an)ua)e and
-ind si)!t me. Des% I !ear ,!at "ou are sa"in) and t!at ma.es sense to me% in a o)i+a ,a".
Hont .no, ,!et!er "oure too +ever ; I dont .no, ,!et!er t!is t!in) t!at "ou !ave t!at I
dont !ave. 2#3'$34$5
T!e ,a" I *ind is -est ; Im 1ust -rin)in) t!is -a+. no,% t!is t!eme started ,it! memeti+
desire ; tr"in) to )et ot!er peope to ,ant somet!in) -e+ause "ou -eieve it is )ood. I t!in.
,!at "ou !ave to do is -e ver" patient. I* it is o-vious t!is person doesnt !ave t!e time ri)!t
no,% a ot )oin) on in t!eir ives% I t!in. t!e appropriate t!in) *or "ou to sa" is%AO.% t!an.
"ou *or )ivin) me "our time. I* "ou !ave an" 7uestions% !ere is m" emai address.A ,rite "our
emai address on somet!in). But i* "ou *ind t!e" are interested in t!is ; ,!at I ,oud do is I
,oud start ,it! Bit+oin and i* t!e" are interested in it% t!en "ou +an move into t!e ,ider
e+os"stem ; t!e at+oins% "ou +an ta. a-out t!e -usinesses t!at are )ro,in) out o* t!is% t!e
-usiness opportunities t!at are emer)in). 2#3'93&C5
T!en I t!in. "ou ma.e "our ,a" in. Start ,it! t!at pro-em *irst% t!en its a-out -ein) patient%
ma.e sure "ou dont ma.e t!em *ee si". Sometimes peope dont i.e it ,!en some-od"
.no,s somet!in) t!at t!e" dont -e+ause per!aps t!e" i.e to *ee i.e t!e" are ver" +ever.
Be sensitive to t!at% parti+uar" i* "ou )et into t!e te+!ni+a stu**. I ,oudnt ta. a-out
minin) as a rue% +ertain" not on "our *irst )o ; t!ats .ind o* !i)! end. Leave t!at unti a
-it ater. 2#3'C3''5
T!en ,e !ave )one *rom t!e p!"si+s% so+ioo)"% and t!is ,!oe t!in) !an)s to)et!er ,it!
t!ese ,onder*u ad1e+tives ,e +a num-ers. t!ose t!in)s t!at are universa ; are understood
t!e ,ord over no matter ,!at +uture "ou are *rom no matter ,!at an)ua)e "ou spea.
ever"-od" understands t!e +on+ept o* #%&. Ever"-od" .no,s t!e 7uantities in t!eir ,ord% t!e
se7uen+es in t!eir ,ord and t!ats ,!at *or me% ma.es t!is rea" po,er*u. 2#3'C34&5
[AA]: /e t!ats t!e essen+e o* a desi)n pattern. 6one" is a an)ua)e and vaue is a
s"m-oi+ and a-stra+t t!in) t!at ,e assi)n to t!in)s usin) t!e an)ua)e o* mone". Its a
s!ared +utura s"stem. It doesnt !ave e<isten+e outside o* !uman +uture. 6one" isnt
somet!in) "ou see outside o* !uman +uture -e+ause it is !uman +uture. And it doesnt !ave
vaue outside o* !uman +uture -e+ause% a)ain% its 1ust an arti*a+t o* !uman s"m-oo)".
2#3'I3'I5
/it!in t!at s"stem% ,e +reate t!e stories t!at ao, us to understand and to use t!at
+onversation% to use t!e an)ua)e o* mone". essentia" to +reate more e**i+ient ,a"s o*
intera+tin) ,it! ea+! ot!er. I* ,e didnt spea. t!e same an)ua)e% ,e +oud sti +ommuni+ate
t!rou)! pantomime and memeti+s and !and )estures. Based on our s!ared vaues% I +an
e<pain *ood to an" !uman in t!e ,ord -" ma.in) a *e, !and )estures -e+ause ,e !ave t!e
same s!ared +utura understandin) o* *ood% ,!i+! is a -ioo)i+a understandin). 2#3'I3$'5
E<painin) mone" is !arder -ut at t!e same time% it is a s!ared an)ua)e -e+ause it ao,s us
to intera+t ,it! peope in a mu+! more e**i+ient ,a" t!an tr"in) to transa+t ,it! p!"si+a
t!in)s t!at are not a-stra+t. Its !ard to e<pain mone" ; its !ard to t!in. a-out mone" -ut
in t!e end% it is somet!in) ,e do a t!e time. In some ,a"s% mone" is one o* t!e odest
inventions o* !umanit". Its !istor" )oes -a+. !undreds o* t!ousands o* "ears. its as -asi+ as
*ire and an)ua)e. And pro-a-" started appearin) soon a*ter *ire and an)ua)e. Basi+ too
ma.in) eads to +reation o* *orms o* intrinsi+ vaues and s"m-os t!at represent t!at.
2#3'B3(C5
T!is is a ver" an+ient +onversation and part o* t!e di**i+ut" !ere is t!at peope in t!e present
are not a,are o* t!e *a+t t!is is a +onversation t!at !as -een !appenin) *or !undreds o*
t!ousands o* "ears. a ot o* t!e t!in)s ,e ta.e *or )ranted are more o* a re*e+tion o* t!e
medium t!at ,e use to spea. t!e an)ua)e. Suar.s o* t!e an)ua)e% +oo7uiaisms ; ,e use
+oo7uiaisms o* paper mone". ,e use spee+! patterns and !a-its and e<pressions t!at rea"
spea. to our +ommon understandin)s o* paper mone" and in+reasin)" o* +redit +ards. T!e"
+oor our understandin) o* mone" -e+ause ,e !ave t!ese itte 7uar.s o* an)ua)e. 2#3#'34$5
T!ats ,!" its important to !ave t!is dis+ussion. I )re, up -iin)ua and one o* t!e t!in)s I
reai8ed ver" ear" on; is !avin) t,o an)ua)es to dra, *rom% ver" 7ui+." )ives "ou t!e
a-iit" to start +omparin). Comparative in)uisti+s opens a ,!oe ,indo, o* understandin)
-e+ause sudden" "ou reai8e t!e di**eren+e -et,een t!in)s t!at are intrinsi+ to t!e an)ua)e
; and t!in)s t!at are part o* ,!at "ou are tr"in) to e<press ,it! t!e an)ua)e. And !o,
di**erent an)ua)es !ande t!ese itte 7uar.s. 2#3##3#95
No,% ever"one is o**ered t!e opportunit" to -e *uent in mutipe +urren+ies. Not mutipe
+urren+ies -ased on t!e same mode -ut mutipe +urren+ies t!at derive *rom +ompete"
di**erent modes. Lust i.e spea.in) 6andarin and En)is! )ives "ou one o* t!e deepest eves
o* +omparative in)uisti+s -e+ause "ou !ave some o* t!e *undamenta +onstru+ts o* in t!e
an)ua)e +ompete" +on+eived di**erent". 2#3##3(C5
Cr"pto+urren+ies and *iat )ive us ver"% ver" deep +omparative numismati+s. It )ives us t!e
a-iit" to ta. a-out mone" in a ne, and interestin) ,a" -e+ause *or t!e *irst time ,e +an
+ompare t,o radi+a" di**erent +on+epts o* +urren+". And t!at 1ust doesnt tea+! us a-out
+r"pto+urren+ies. I t!in. more important"% its tea+!in) peope a-out +urren+"% in )enera.
Hepin) t!em understand t!e mone" t!e" aread" !ave% -etter t!an t!e" did -e*ore. T!at t!e
ne, +onversation ,ere !avin). 2#3#&3&'5
[CE]: T!e 7uestion ,ere !avin) is3 no, ,!at> Li.e "ou sa"% to +ontinue on *rom ,!ere
"oure sa"in) ; t!is is a-out vaue% +reated around ines o* trust and +uture and not around
nationa -orders an"more. And I t!in. ,!at t!e point is ; I t!in. t!is te+!noo)" +an !ep
t!em )et t!ere -e+ause "ouve )ot monetar" s"stems ,!ere re)uation is -a.ed in -" desi)n.
Et!i+s are -a.ed into t!e +ode "ou dont !ave to !ave a poi+e o**i+er to )o around en*or+in)
t!e dou-e spends% -e+ause ever"one is a poi+e o**i+er. Ever"one is do,noadin) t!e ,aet
so*t,are% ever" ,aet so*t,are is a master node. It ,i tra+e ever" transa+tion and it ,i
veri*" t!e vaidit" o* t!e -o+.+!ain% o* t!e pu-i+ ed)er ; a t!e +aims% a o* t!e
e+onomi+ +aims t!at !ave -een made on t!e net,or. ,i -e veri*ied independent" -" ea+!
node. 2#3#43&'5
[AA]: Ei)!t% e<a+t"% so its ironi+ -e+ause peope sa" Bit+oin is unre)uated. /!ere is% in
*a+t% Bit+oin is re)uated; it is re)uated -" +onvention -" a)orit!m. Its re)uated -" our
s!ared understandin) o* t!e proto+o. And t!at means it is re)uated -" ever" one o* us.
/!ere it ta.es a,a" +ounterpart" ris. mandated *rom t!e outside% it )ives us t!e opportunit"
to add t!e +ounterparties o* our +!oi+e% ,it! t!in)s i.e muti0si). 2#3#43(C5
It +!aen)es our ver" notions o* ,!ere t!e sour+es o* aut!orit" is. and !o, to +ondu+t
ourseves in a s"stem ,!ere deterministi+ resoution o* transa+tions is possi-e ; -ased on
t!is s!ared +onsensus ,!ere ; "ou not on" .no, ,!at is !appenin) on t!e Bit+oin net,or.
t!rou)! e<amination o* t!e -o+.+!ain ; ea+! individua +ient +an independent" veri*"
ea+! transa+tion ,it!out e<terna re+ourse% simp" -" oo.in) at t!e proo*0o*0,or. t!at is
em-edded in t!e -o+.+!ain. 2#3#(3&&5
But not on" do "ou .no, ,!at is !appenin) on t!e Bit+oin net,or.% "ou aso .no, t!at
ever"-od" ese .no,s% ,!at is !appenin) on t!e Bit+oin net,or.. Dou aso .no, t!at
ever"-od" ese .no,s% t!at ever"-od" ese .no,s% ,!at is !appenin) on t!e net,or..
2#3#(34I5
So its not 1ust "our app"in) t!e +onvention to arrive to a +on+usion or derive some
.no,ed)e. Dou .no, t!at ever"one is app"in) t!e same +onvention and t!ere*ore "ou +an
predi+t t!e" ,i arrive at t!e same +on+usion. And *ina"% "ou .no, t!at ever"-od"
understands t!is +onvention is -road" s!ared and t!ere*ore ever"one +an predi+t t!e entire
net,or. ,i arrive at t!e same +on+usion t!rou)! t!is pro+ess o* +onsensus. And t!ats .ind
o* a ver" -eauti*u t!in). Its a ver" ee)ant t!in)% -e+ause it is t!e utimate e<tension o*
.no,ed)e. Its not somet!in) I .no, ; its somet!in) I .no,% I .no, "ou .no, it and "ou
.no, t!at I .no, it. Sounds i.e a ra--it !oe% in *a+t its a ver" important prin+ipa o*
.no,ed)e ,!i+! is ;t!at s!ared understandin). S!ared +onsensus ,!i+! ao,s us to ma.e
deterministi+ predi+tions a-out ,!at ,i !appen on t!e -o+.+!ain. 2#3#$3445
I* I oo. at a transa+tion% I +an te "ou ,!et!er t!at transa+tion ,i -e veri*ied -e+ause I
.no, t!at ever"one ,i use t!e same approa+! to de+ide t!at 7uestion. And t!at is e<treme"
po,er*u -e+ause it means "ou no on)er !ave to re" on trust% outside o* "our o,n
understandin) o* t!e s"stem. it ,i -e a ver" po,er*u *orm o* 1usti+e -e+ause t!at s!ared
understandin) +annot -e easi" vioated or +on*used or +!eated ; -" an"one a+tin) a)ainst
t!e +ommon +onsensus ,!en ever"one is mar+!in) to t!e same -eat% t!at #' minute puse o*
-o+. +on*irmation t!rou)! in+reased proo*0o*0,or.. Its ver" eas" to noti+e t!e one a+tor
t!at is tr"in) to mar+! a)ainst t!e -eat. Its ver" di**i+ut to mar+! a)ainst t!at -eat. 2#3#93&'5
T!is is a ne, narrative and its one t!at ,i ta.e some time to understand. T!e ones ,!o are
most steeped in t!e od narrative are t!e ones ,!o are )oin) to !ave t!e )reatest di**i+ut"
adaptin) to t!is. T!e same *or -an.ers% as its -een *or s+ientists and an" ot!er pro*ession.
Dou tend to use t!e e<istin) paradi)m. 2CE +uts o**% inaudi-e5 2#3#93((5
I t!in. t!ere is an interestin) reai8ation% -an.ers t!emseves as individuas are% *or t!e most
part% ni+e peope. And *or t!e most part% t!e" are doin) a )ood 1o- and ivin) in a s"stem
,!ere t!e" *ee t!e" are )ettin) proper" re,arded *or deiverin) t!e +entrai8ed trust t!at
peope need. In t!at respe+t% t!e"re doin) )ood. It is on" as a s"stem% as a ,!oe ; ,!ere
t!e s"stemi+ +ompromise at ever" eve and t!e opportunities *or +orruption meet% t!at as a
,!oe% t!e s"stem doesnt do )ood. But most individuas in t!e s"stem are 1ust movin) ,it!
t!e *o,. But t!e ni+e ne,s is t!at ,it! t!is ne, s"stem% -e+ause it is +ompete" e<terna to
t!e traditiona -an.in) s"stem% ,e dont need t!eir permission. And 1ust i.e man"
de+entrai8ation movements in t!e past% t!e peope in t!e +enter are east i.e" to )ive "ou
permission to de+entrai8e t!em out o* a 1o-. As in man" +ases% t!e" !ave no +ontro over it.
T!e most disruptive moments t!at remove +ontro over t!e *uture o* t!e disruption *rom t!e
peope ,!o are most i.e" to -e disrupted. 2#3#I3'C5
Bit+oin doesnt need an"-od"s permission. Cr"pto+urren+ies% as a desi)n pattern% +an -e
adopted on an individua -" individua -asis% unti t!e reait" o* it is simp" momentous%
mountainous% andO2#3#I3&&5
[CE]: Ever"t!in) "ouve said is a-soute" on t!e -utton. I ,oud a+tua" sa" t!at t!e
-o+.+!ain tes t,o stories. It tes a stor" to us in t!e present a-out t!e trans*er o* vaue -ut
it aso tes t!e stor" to t!e *uture. Dou )otta t!in. a-out t!is as a permanent ed)er% a
permanent re+ord and t!e !istor" is )oin) to oo. -a+. at t!e t!in)s t!at "ou did. Its )oin) to
-e ver"% ver" di**i+ut to separate "our identit" *rom "our a+tions on t!e -o+.+!ain over time.
Dou +an do it ,ea." ; "ouve spo.en a-out it -e*ore% ,ea. pseudon"mit". Des% "ou do )et
some anon"mit". O* +ourse% ,it! some anon"mit"% +omes aut!enti+it" ; "oure a-e to
e<pore ne, ,a"s o* -ein)% ne, sides to "ourse* t!at per!aps t!e so+iet" "oure em-edded
in didnt et "ou. But over time% t!at anon"mit" is )oin) to oo. ver"% ver" temporar". I t!in.
,e a need to t!in. a-out t!e ,a" ; ,!at !istor" are ,e eavin) -e!ind> /!at are ,e )oin)
to eave *or t!e peope ater> 2#3#B3&45
[AA]: T!e ada)e is3 on+e somet!in) is on t!e internet% its on t!e internet *orever. 0Lust )ot
ma)ni*ied 2CE +uts o**% inaudi-e5 2#3#B3&B5
[CE]: T!ese are e+onomi+ +aims "ou are ma.in). I* "ou dont !ave mone"% "ou dont !ave a
voi+e. And t!is is t!e t!in) ; ,!atever "oure doin) ,it! "our mone" is )oin) to spea. even
more a-out t!e .ind o* person t!at "ou are. 2#3#B3$'5
[AA]: T!is !as -een a *as+inatin) +onversation a-out t!e nature o* mone"% t!e nature o*
reait"% p!iosop!" as it appies to Bit+oin% intrinsi+ vaue% t!e *uture o* 1usti+e% and
de+entrai8ed s"stems. As a,a"s% 2CE +uts o**% inaudi-e5 2#3&'3'B5
[AA]: T!an.s *or 1oinin) me toda". 2#3&'3#&5
[ABL]: T!an.s *or istenin) to Episode #'# o* Lets Ta. Bit+oin. Content *or t!is episode
,as provided -" Andreas 6. Antonopouos and C!ris Eis. 6usi+ *or t!is episode ,as
provided -" Lared Eu-ens and =enera :u88. An" 7uestions or +omments% emai
adamTetsta.-it+oin.+om. Have a )ood one. 2#3&'34'5
[Music]