1 00:00:01,360 --> 00:00:11,480 Speaker 1: Welcome to Stuff you Should Know fromhouse Stuff Works dot com. Hey, 2 00:00:11,520 --> 00:00:13,760 Speaker 1: and welcome to the podcast. I'm Josh Clark, and there's 3 00:00:13,800 --> 00:00:16,680 Speaker 1: Charles W. Chuck Bryant, and uh, this is Stuff you 4 00:00:16,680 --> 00:00:20,959 Speaker 1: Should Know the podcast the Tech Edition, which we don't 5 00:00:21,160 --> 00:00:24,760 Speaker 1: dive into tech too much because that's that's Jay Strick 6 00:00:25,040 --> 00:00:30,160 Speaker 1: and Lauren's territory. Yeah, and frankly, we're a little scared 7 00:00:30,160 --> 00:00:32,520 Speaker 1: of our cohorts at Tech Stuff. They do a great job, 8 00:00:33,240 --> 00:00:37,040 Speaker 1: but we've gotten so many requests for this topic that 9 00:00:37,200 --> 00:00:39,120 Speaker 1: we were like, you know, we got we gotta satisfied 10 00:00:39,920 --> 00:00:41,559 Speaker 1: the Stuff you should Know fans. We don't want them 11 00:00:41,560 --> 00:00:44,839 Speaker 1: showing up with torches led by Moe the bartender at 12 00:00:44,840 --> 00:00:47,760 Speaker 1: our door. You know, you know, this might be the 13 00:00:47,840 --> 00:00:52,879 Speaker 1: most requested of all time. Possibly, Oh you think, I 14 00:00:52,920 --> 00:00:55,000 Speaker 1: think it might be. I can't think of another one 15 00:00:55,080 --> 00:00:59,200 Speaker 1: that that comes to mind. That was maybe like mormon Ism, Yeah, 16 00:00:59,240 --> 00:01:02,800 Speaker 1: Mormonism apology. And I see accents a lot. People want 17 00:01:02,840 --> 00:01:04,600 Speaker 1: to get to the bottom of accents. That would be 18 00:01:04,600 --> 00:01:06,880 Speaker 1: a good one. We need to do that. You want 19 00:01:06,959 --> 00:01:11,280 Speaker 1: to do that now? Instead? Crikey, that's good. I could do. 20 00:01:11,319 --> 00:01:14,959 Speaker 1: How bad accents work? Do it? Do? Italian No, I'm 21 00:01:15,000 --> 00:01:18,440 Speaker 1: not to your monkey. That's good stuff. It's not that 22 00:01:18,440 --> 00:01:21,080 Speaker 1: I think you're my monkey. It's that you do um 23 00:01:21,400 --> 00:01:25,480 Speaker 1: accents way better than me. No, meaning that I attempt 24 00:01:25,560 --> 00:01:27,360 Speaker 1: them and do with them poorly, where you you don't 25 00:01:27,400 --> 00:01:32,160 Speaker 1: even attempt them, and it is off the charts. It's 26 00:01:32,200 --> 00:01:38,880 Speaker 1: not bad, so chuckers. Yes, you know much about money? Um, 27 00:01:39,040 --> 00:01:42,440 Speaker 1: not much? No, No, I know that I got a 28 00:01:42,440 --> 00:01:44,959 Speaker 1: few pennies in the bank and that's about it. How 29 00:01:45,000 --> 00:01:48,480 Speaker 1: that works? Okay, Well, we've talked about money before. We 30 00:01:48,520 --> 00:01:51,760 Speaker 1: where where was it that the first a lot of 31 00:01:51,800 --> 00:01:54,480 Speaker 1: financial stuff? There was something we did recently where we 32 00:01:54,520 --> 00:01:59,400 Speaker 1: were talking about how Mesopotamia the first system of wasn't 33 00:01:59,400 --> 00:02:02,080 Speaker 1: it like the first coinage in China? Of course too. 34 00:02:03,480 --> 00:02:08,440 Speaker 1: But um, nowadays, when we think money here in the U. S. 35 00:02:08,480 --> 00:02:11,359 Speaker 1: At least, and in Canada and actually pretty much the 36 00:02:11,400 --> 00:02:15,240 Speaker 1: world because the world uses dollars um, we think of 37 00:02:16,320 --> 00:02:20,320 Speaker 1: paper money or coins printed by the U. S. Mint 38 00:02:20,400 --> 00:02:22,840 Speaker 1: at the behest of the U. S. Treasury on behalf 39 00:02:22,919 --> 00:02:29,080 Speaker 1: of the United States government banks are backed and insured. Clearly, 40 00:02:29,080 --> 00:02:31,480 Speaker 1: we know that they're covered in case something goes wrong. Yeah, 41 00:02:31,480 --> 00:02:34,920 Speaker 1: because you and I are covering them buddy, Yeah, basically, 42 00:02:35,080 --> 00:02:38,320 Speaker 1: but it wasn't this system that we take very much 43 00:02:38,400 --> 00:02:42,680 Speaker 1: for granted now of you know ones, fives, tens, twenties, hundreds, 44 00:02:42,760 --> 00:02:45,160 Speaker 1: and then there were some other ones. This is fairly new. 45 00:02:45,280 --> 00:02:47,239 Speaker 1: It was just the beginning of the twentieth century that 46 00:02:47,280 --> 00:02:52,800 Speaker 1: the Federal Reserve was created. Before that and during the 47 00:02:52,840 --> 00:02:55,679 Speaker 1: Civil War era, I think maybe even post Civil War, 48 00:02:56,960 --> 00:03:02,200 Speaker 1: there was there more than eight thousand different entities, typically banks, 49 00:03:02,720 --> 00:03:05,200 Speaker 1: that we're printing their own currency. Yeah. Man, we talked 50 00:03:05,240 --> 00:03:07,800 Speaker 1: about that. What was that? Was that the barter thing? Maybe? 51 00:03:07,880 --> 00:03:12,280 Speaker 1: So yeah, but you're right, it's a great wall to 52 00:03:12,320 --> 00:03:16,720 Speaker 1: go back to because it's so interesting and like, you know, 53 00:03:16,760 --> 00:03:18,359 Speaker 1: if you're a bank, you can just be like, hey, 54 00:03:18,360 --> 00:03:20,400 Speaker 1: I got a bunch of gold here, I'll print some 55 00:03:20,440 --> 00:03:22,560 Speaker 1: money based on this, and I'm gonna put my picture 56 00:03:22,600 --> 00:03:24,560 Speaker 1: on it, or maybe a picture of my favorite horse. 57 00:03:24,680 --> 00:03:29,760 Speaker 1: This is a Jim At Fearson dollar exactly. See. Anyway, um, 58 00:03:29,919 --> 00:03:32,239 Speaker 1: all that went to the wayside when the Federal Reserve 59 00:03:32,280 --> 00:03:36,080 Speaker 1: came about, and then everybody's like stop, just the federal 60 00:03:36,120 --> 00:03:38,000 Speaker 1: government can print money from now on, and we're gonna 61 00:03:38,000 --> 00:03:39,880 Speaker 1: back it with golden and you know what, We're not 62 00:03:39,880 --> 00:03:42,080 Speaker 1: gonna back with gold anymore. Let's just say you guys 63 00:03:42,120 --> 00:03:44,400 Speaker 1: believe this has value, will go with that. Well, at 64 00:03:44,400 --> 00:03:47,520 Speaker 1: that point that everyone's had bought in literally and figuratively, 65 00:03:47,600 --> 00:03:50,320 Speaker 1: so exactly, so we went from the gold standard to 66 00:03:50,560 --> 00:03:53,840 Speaker 1: a fiat currency, which is everybody, come make believe that 67 00:03:53,920 --> 00:03:56,960 Speaker 1: this actually has value, and it actually will have have value. 68 00:03:56,960 --> 00:04:00,680 Speaker 1: It's pretty magic. And that transition to a yeah currency 69 00:04:00,720 --> 00:04:03,440 Speaker 1: gave birth to what we're going to to talk to today, 70 00:04:03,560 --> 00:04:05,240 Speaker 1: or the possibility of what we're going to talk to 71 00:04:05,360 --> 00:04:08,400 Speaker 1: about today, which is bitcoin, which is a real thing 72 00:04:08,480 --> 00:04:11,200 Speaker 1: right now. It's you know, will it survive who knows, 73 00:04:11,280 --> 00:04:14,480 Speaker 1: But as of the recording of this podcast, it is 74 00:04:14,520 --> 00:04:17,880 Speaker 1: super legit and what about a billion dollars It may 75 00:04:17,960 --> 00:04:21,480 Speaker 1: in fact be too legit to quit. Maybe. Um, I 76 00:04:21,880 --> 00:04:25,200 Speaker 1: didn't see an estimated value of all the bitcoins and circulation. 77 00:04:25,279 --> 00:04:27,520 Speaker 1: I saw that, but it, as we will find out, 78 00:04:27,640 --> 00:04:34,880 Speaker 1: it fluctuates like on a minute to minute basiss next week. Yeah. Um, 79 00:04:34,960 --> 00:04:38,080 Speaker 1: but like you said, though, the whole thing hasn't crashed. 80 00:04:38,480 --> 00:04:40,680 Speaker 1: It may be what we're seeing is a bubble and 81 00:04:40,720 --> 00:04:44,080 Speaker 1: then another bubble and they just bubbles bursting. But the 82 00:04:44,120 --> 00:04:47,520 Speaker 1: system hasn't crashed, and that's because the system, the theory 83 00:04:47,560 --> 00:04:52,160 Speaker 1: behind it, and the practice it turns out is extremely sound. Yeah. 84 00:04:52,600 --> 00:04:55,880 Speaker 1: And what's even more awesome about bitcoin, which is, we 85 00:04:55,880 --> 00:05:03,040 Speaker 1: should say the world's first digital, entirely digital, decentralized currency, um, 86 00:05:03,320 --> 00:05:06,640 Speaker 1: is that it has a great origin story. It's shrouded 87 00:05:06,640 --> 00:05:10,000 Speaker 1: in mystery. No one knows who created it, and the 88 00:05:10,000 --> 00:05:13,880 Speaker 1: things that it's used for it can be shady and weird, 89 00:05:14,000 --> 00:05:16,479 Speaker 1: and it's all just very you know, some of it's 90 00:05:16,480 --> 00:05:19,039 Speaker 1: on the deep web, and it's just very interesting and 91 00:05:19,200 --> 00:05:22,919 Speaker 1: like salacious, and it's very anarchistic in nature. It's there's 92 00:05:22,960 --> 00:05:25,720 Speaker 1: no not only is it not backed by any government, 93 00:05:26,400 --> 00:05:30,280 Speaker 1: it's not issued by any central authority. Yeah, it's part 94 00:05:30,480 --> 00:05:33,440 Speaker 1: if you're part of the bitcoin network, then you are 95 00:05:33,600 --> 00:05:38,000 Speaker 1: part of this the authority to issue it. Yeah. And 96 00:05:38,040 --> 00:05:41,120 Speaker 1: it's actually technically it's mathematics that has the authority to 97 00:05:41,160 --> 00:05:43,359 Speaker 1: issue bitcoins. Yeah. It took me while to wrap my 98 00:05:43,400 --> 00:05:46,400 Speaker 1: head around it because it's such an entirely new thing 99 00:05:46,680 --> 00:05:49,960 Speaker 1: and it's very complex. Yeah. And well, although it really 100 00:05:50,040 --> 00:05:52,359 Speaker 1: isn't like when you break it down, that's what I 101 00:05:52,400 --> 00:05:54,360 Speaker 1: had to eventually figure out. I studied enough, or I 102 00:05:54,400 --> 00:05:56,240 Speaker 1: was like, oh wait, this is actually kind of simple 103 00:05:56,640 --> 00:05:59,159 Speaker 1: and at the root of it all, as who wrote this, 104 00:05:59,240 --> 00:06:02,440 Speaker 1: it's strickling, right, No, this is a Nathan Chandler. Um 105 00:06:02,600 --> 00:06:04,799 Speaker 1: Chandler points out, at the root of it all, basically, 106 00:06:05,960 --> 00:06:08,279 Speaker 1: all that you have to do to invent a currency 107 00:06:08,360 --> 00:06:11,800 Speaker 1: is have enough people say this is currency, and then 108 00:06:11,880 --> 00:06:14,640 Speaker 1: you have currency. Whether, like I said, whether it sticks around, 109 00:06:14,640 --> 00:06:16,880 Speaker 1: who knows. But as of now there are enough people 110 00:06:17,720 --> 00:06:22,160 Speaker 1: buying and selling bitcoins and use speculating and using bitcoins, well, 111 00:06:22,440 --> 00:06:25,479 Speaker 1: that's that's trade. Then it's it's a thing. That's the 112 00:06:25,520 --> 00:06:27,600 Speaker 1: other thing that gives it value is that if there's 113 00:06:27,640 --> 00:06:30,800 Speaker 1: somebody out there who's willing to accept that currency for 114 00:06:30,880 --> 00:06:34,120 Speaker 1: a pizza, then it has the value of a pizza 115 00:06:34,360 --> 00:06:37,839 Speaker 1: at least. Right, So let's talk about the origin first. 116 00:06:38,440 --> 00:06:42,680 Speaker 1: Uh sure, the origin. Back in two thousand eight, a 117 00:06:42,720 --> 00:06:51,039 Speaker 1: mysterious pseudonym popped up, uh Satoshi Nakamoto. And we don't 118 00:06:51,040 --> 00:06:53,279 Speaker 1: know if this is a lady or a man, or 119 00:06:53,480 --> 00:06:56,760 Speaker 1: men or women or both, could be a group who knows, 120 00:06:57,760 --> 00:07:02,799 Speaker 1: and uh they or he or she or it published 121 00:07:02,800 --> 00:07:06,640 Speaker 1: a document that outlined what bitcoin was said, this is 122 00:07:06,680 --> 00:07:09,200 Speaker 1: a new thing that we or I or me are 123 00:07:09,240 --> 00:07:13,640 Speaker 1: trying to create. And I believe that person mented the 124 00:07:13,680 --> 00:07:17,320 Speaker 1: first fifty coins himself or herself or themselves. Yeah, that 125 00:07:17,440 --> 00:07:20,280 Speaker 1: was two thousand nine. And the document that that he 126 00:07:20,480 --> 00:07:25,960 Speaker 1: she that Satoshi published, um, it was really groundbreaking because 127 00:07:25,960 --> 00:07:30,320 Speaker 1: it it figured out a longstanding problem that was preventing 128 00:07:30,400 --> 00:07:33,640 Speaker 1: digital currency from being established. And that was what was 129 00:07:33,760 --> 00:07:37,960 Speaker 1: to prevent anybody from copying and pasting the code that 130 00:07:38,000 --> 00:07:40,360 Speaker 1: makes up your digital currency and then using it again 131 00:07:40,400 --> 00:07:43,280 Speaker 1: and again and again. Well, there's one easy way around it. 132 00:07:43,320 --> 00:07:45,600 Speaker 1: You have a ledger, but you have to have somebody 133 00:07:45,640 --> 00:07:47,960 Speaker 1: you trust to keep track of the ledger. And what 134 00:07:48,120 --> 00:07:51,880 Speaker 1: Satoshi came up with and that what bitcoin does is 135 00:07:51,920 --> 00:07:56,520 Speaker 1: it makes the ledger entirely public, so that everyone is 136 00:07:56,680 --> 00:08:00,160 Speaker 1: working out the ledger and it's actually that process of 137 00:08:00,480 --> 00:08:03,000 Speaker 1: keeping track of the ledger and who has what coin 138 00:08:03,040 --> 00:08:07,080 Speaker 1: and what coin has been transferred to whom uh that 139 00:08:07,200 --> 00:08:10,400 Speaker 1: actually mints new coins. So we need to step back 140 00:08:10,400 --> 00:08:12,400 Speaker 1: and explain what's going on here, because I think people 141 00:08:12,400 --> 00:08:14,720 Speaker 1: are already confused. If you don't know what bitcoin is, 142 00:08:14,760 --> 00:08:17,720 Speaker 1: You're like, what are these guys talking about? Bitcoin is 143 00:08:18,160 --> 00:08:22,360 Speaker 1: virtual money that you can now use online to buy 144 00:08:22,440 --> 00:08:27,600 Speaker 1: and sell things and there are a number of retailers 145 00:08:27,600 --> 00:08:30,600 Speaker 1: that are accepting this. Um, it's not just the deep web. 146 00:08:30,600 --> 00:08:32,839 Speaker 1: We'll get to that in a minute. UM. And now 147 00:08:32,840 --> 00:08:36,000 Speaker 1: they're even go between companies that allow you to I 148 00:08:36,040 --> 00:08:40,520 Speaker 1: guess they uh not transfer, but they convert your real 149 00:08:40,559 --> 00:08:43,760 Speaker 1: dollars into bitcoins too. You know, if you want to 150 00:08:43,760 --> 00:08:46,640 Speaker 1: shop at like Macy's, let's say they convert your bitcoins 151 00:08:46,640 --> 00:08:49,280 Speaker 1: into real dollars, bitcoins and real dollars the other way around. 152 00:08:49,360 --> 00:08:51,440 Speaker 1: And Chandler points out a good way to think of 153 00:08:51,480 --> 00:08:55,920 Speaker 1: bitcoins is it's a digital standing for cash because it's anonymous, exactly. 154 00:08:55,920 --> 00:08:58,600 Speaker 1: And that's the big key. So if you want to 155 00:08:58,800 --> 00:09:01,800 Speaker 1: buy things anonymously, or if you are a libertarian and 156 00:09:01,840 --> 00:09:04,040 Speaker 1: you just want to stick it to the government, or 157 00:09:04,080 --> 00:09:06,360 Speaker 1: if you don't trust the government, or you don't trust banks. 158 00:09:06,800 --> 00:09:10,400 Speaker 1: A big thing that um Nakamoto preyed on was the 159 00:09:10,400 --> 00:09:14,400 Speaker 1: financial collapse, obviously, and uh was basically like, hey, look around, 160 00:09:14,440 --> 00:09:16,880 Speaker 1: what's going on, Like you're gonna trust your money there? 161 00:09:17,320 --> 00:09:19,720 Speaker 1: Like why not trust this new thing. Let's give it 162 00:09:19,760 --> 00:09:22,640 Speaker 1: a try. Let's give it a try. So basically, if 163 00:09:22,679 --> 00:09:24,120 Speaker 1: there are a couple of different things you can do, 164 00:09:24,200 --> 00:09:28,240 Speaker 1: you can either participate as just someone who buys bitcoins 165 00:09:28,240 --> 00:09:31,080 Speaker 1: with your credit card or whatever and then uses them 166 00:09:31,120 --> 00:09:34,439 Speaker 1: to shop. Chandler says that you can buy with credit cards, 167 00:09:34,440 --> 00:09:36,200 Speaker 1: but I saw from a couple of different sources that 168 00:09:36,240 --> 00:09:39,080 Speaker 1: like most places do not take credit cards, that you 169 00:09:39,120 --> 00:09:41,440 Speaker 1: either have to give them your bank account or else 170 00:09:41,720 --> 00:09:44,640 Speaker 1: figure out a way to pay cash, like using money. Graham, Well, 171 00:09:44,760 --> 00:09:47,160 Speaker 1: that's been the more preferred way as of late, but 172 00:09:47,200 --> 00:09:49,480 Speaker 1: they're still credit card people that will take a credit card. 173 00:09:50,280 --> 00:09:52,040 Speaker 1: So the first thing you need to do is set 174 00:09:52,080 --> 00:09:54,920 Speaker 1: up set up your wallet, and that is basically your account, 175 00:09:55,160 --> 00:09:58,679 Speaker 1: your digital account, and then you buy bitcoins and they 176 00:09:58,679 --> 00:10:01,400 Speaker 1: are in your account and you use them for whoever 177 00:10:01,440 --> 00:10:03,200 Speaker 1: takes them right, and you buy them from like a 178 00:10:03,280 --> 00:10:08,320 Speaker 1: central currency exchange, probably Mount Cox, although we'll talk about 179 00:10:08,360 --> 00:10:10,720 Speaker 1: them in a minute too, but they've been handling about 180 00:10:10,760 --> 00:10:15,679 Speaker 1: six of all bitcoin transactions. Um well, purchases of bitcoins 181 00:10:15,800 --> 00:10:18,280 Speaker 1: you go to Mount Cox typically, So, like I said, 182 00:10:18,320 --> 00:10:19,800 Speaker 1: one reason you might want to do this is if 183 00:10:19,800 --> 00:10:21,520 Speaker 1: you don't trust the banks, or you're tired of the 184 00:10:21,520 --> 00:10:25,120 Speaker 1: government getting involved in your money, or if you just 185 00:10:25,160 --> 00:10:27,280 Speaker 1: want to save some money. Because what you're doing is 186 00:10:27,320 --> 00:10:30,319 Speaker 1: you're skipping middlemen and so you're saving on a lot 187 00:10:30,360 --> 00:10:33,199 Speaker 1: of transaction fees. Oh yeah, if you have you ever 188 00:10:33,280 --> 00:10:37,640 Speaker 1: purchased something overseas through PayPal? No, not overseas. Oh man, 189 00:10:37,760 --> 00:10:43,000 Speaker 1: it is expensive that pleas to Bitcoin has no central authority, 190 00:10:43,440 --> 00:10:46,839 Speaker 1: and so there's no bank you're dealing with, so you're 191 00:10:46,840 --> 00:10:50,040 Speaker 1: not gonna be charged the bank's fees. And the transfer 192 00:10:50,080 --> 00:10:54,240 Speaker 1: companies that do work with bitcoin typically charge like two bucks, 193 00:10:54,320 --> 00:10:57,520 Speaker 1: three bucks something like that, So you skip all that, 194 00:10:57,960 --> 00:11:01,040 Speaker 1: you're not paying as many fees. Uh. The wallet is 195 00:11:01,080 --> 00:11:04,280 Speaker 1: a software program, so it's not like a literal wallet. Obviously. 196 00:11:04,480 --> 00:11:07,160 Speaker 1: You download your wallet, you've got your little account, you 197 00:11:07,200 --> 00:11:10,400 Speaker 1: buy your bitcoins, and you can just do that if 198 00:11:10,400 --> 00:11:13,640 Speaker 1: you want. You can just buy things. You can buy 199 00:11:13,679 --> 00:11:15,520 Speaker 1: things on the regular web. You can buy things on 200 00:11:15,559 --> 00:11:17,760 Speaker 1: the deep hidden web. You can also just hang on 201 00:11:17,800 --> 00:11:20,000 Speaker 1: to them and speculate. Well, that's the second thing you 202 00:11:20,000 --> 00:11:22,840 Speaker 1: can do. You can speculate and buy and sell the 203 00:11:22,880 --> 00:11:26,760 Speaker 1: apparently the Winkle Boss Twins the Winkleby the Winkelby from 204 00:11:26,800 --> 00:11:30,400 Speaker 1: the Facebook movie. Uh, in real life? Are they have 205 00:11:30,480 --> 00:11:35,520 Speaker 1: like eleven million dollars worth of bitcoins now? And how 206 00:11:35,600 --> 00:11:37,280 Speaker 1: much it will be worth tomorrow? But yeah, they have 207 00:11:37,360 --> 00:11:40,080 Speaker 1: millions of dollars worth of bitcoins. Yes, so they're apparently 208 00:11:40,360 --> 00:11:45,319 Speaker 1: supposedly bitcoin millionaires that have made their money speculating by 209 00:11:45,360 --> 00:11:50,199 Speaker 1: buying and selling just like you would a stock, let's say. Right, 210 00:11:50,320 --> 00:11:52,719 Speaker 1: so that's another thing you can do. The other thing 211 00:11:52,800 --> 00:11:56,440 Speaker 1: you can do is actually participate in mind these coins, 212 00:11:56,480 --> 00:11:59,400 Speaker 1: which is sounds complex but it's really not. All right, well, 213 00:11:59,440 --> 00:12:02,000 Speaker 1: let's get into this because now we're talking about the 214 00:12:02,040 --> 00:12:04,559 Speaker 1: Bitcoin network, right, Yeah, it's a peer to peer we 215 00:12:04,559 --> 00:12:07,080 Speaker 1: should point that out. That's very important peer to peer network, right, 216 00:12:07,160 --> 00:12:11,320 Speaker 1: like bit torrent or Skype. Yeah, there's no centralized like 217 00:12:11,480 --> 00:12:14,920 Speaker 1: mainframe running this thing exactly. If the whole thing operates 218 00:12:15,040 --> 00:12:17,920 Speaker 1: on the computers of the people who are part of 219 00:12:17,960 --> 00:12:22,240 Speaker 1: bitcoin network. That's right. Okay, So the mining is really 220 00:12:22,280 --> 00:12:23,760 Speaker 1: the most important, and I think that's where a lot 221 00:12:23,800 --> 00:12:27,040 Speaker 1: of people get tripped up. There's three things basically that 222 00:12:27,120 --> 00:12:33,840 Speaker 1: mining coins. You're creating coins essentially, um you are, Uh, well, 223 00:12:33,920 --> 00:12:36,640 Speaker 1: let's let's get into it. They transactions are released in 224 00:12:36,720 --> 00:12:42,000 Speaker 1: six ten minute blocks, so every ten minutes now coins 225 00:12:42,040 --> 00:12:45,360 Speaker 1: are released into the system. That's the approximate about how 226 00:12:45,400 --> 00:12:49,359 Speaker 1: long it's been taking computers to figure out this mathematical problem. 227 00:12:49,440 --> 00:12:51,800 Speaker 1: Now they're released every ten minutes, whether or not they're 228 00:12:51,800 --> 00:12:54,240 Speaker 1: figured out or not. Might it might take longer than that. 229 00:12:54,400 --> 00:12:56,280 Speaker 1: So okay, well then you can explain this to me 230 00:12:56,280 --> 00:12:58,280 Speaker 1: because I was a little tripped up by this too. 231 00:12:58,760 --> 00:13:02,560 Speaker 1: Um So every ten minutes, the computer that happens to 232 00:13:02,640 --> 00:13:08,040 Speaker 1: be working on the math problem and solves it at 233 00:13:08,040 --> 00:13:12,960 Speaker 1: that ten minute part gets the coin. So is it random? Well, 234 00:13:13,000 --> 00:13:15,400 Speaker 1: I think we need to step back again and explain 235 00:13:15,440 --> 00:13:18,320 Speaker 1: what these are. It is. It sounds confusing, but it's not. 236 00:13:19,280 --> 00:13:21,240 Speaker 1: Every ten minutes they release what's called a block, and 237 00:13:21,280 --> 00:13:26,480 Speaker 1: a block is essentially a group of transactions across the 238 00:13:26,480 --> 00:13:30,480 Speaker 1: bit coin network. So it is up to a person, 239 00:13:30,600 --> 00:13:33,000 Speaker 1: but usually a group of people team up to do 240 00:13:33,040 --> 00:13:35,680 Speaker 1: this because it requires a lot of computing power two 241 00:13:36,440 --> 00:13:41,840 Speaker 1: perform um to basically handle these transactions, just like American 242 00:13:41,880 --> 00:13:45,240 Speaker 1: Express pay someone to handle their transaction. Totally got it, 243 00:13:45,320 --> 00:13:47,560 Speaker 1: I got it, Thank you. This is the this is 244 00:13:47,559 --> 00:13:50,400 Speaker 1: what was tripping me up. Yeah, okay, okay. And then 245 00:13:50,440 --> 00:13:53,880 Speaker 1: that block is a group of transactions, right, and this 246 00:13:53,960 --> 00:13:57,240 Speaker 1: is the transactions formed the ledger, like who has what coin? 247 00:13:57,360 --> 00:13:59,920 Speaker 1: What coin got transferred to what person? Like verifying all 248 00:14:00,040 --> 00:14:02,439 Speaker 1: that stuff. All that takes money. That's the usually those 249 00:14:02,480 --> 00:14:04,640 Speaker 1: are the fees you're paying like amex to do something 250 00:14:04,679 --> 00:14:08,679 Speaker 1: like that, right, okay, and this this is also encrypted information. 251 00:14:08,800 --> 00:14:11,200 Speaker 1: Well yeah, that's the key. So that block is basically 252 00:14:11,240 --> 00:14:15,079 Speaker 1: a math problem for a computer to workout and everybody. 253 00:14:15,080 --> 00:14:17,640 Speaker 1: So every ten minutes, everybody on the network gets that 254 00:14:17,679 --> 00:14:20,560 Speaker 1: same block, and whoever figures that out first gets the 255 00:14:20,600 --> 00:14:24,200 Speaker 1: newly minted bitcoins gets that reward. They call it a reward. 256 00:14:24,320 --> 00:14:27,520 Speaker 1: I got it. That's pretty much it. So here's the thing, though, 257 00:14:27,520 --> 00:14:30,520 Speaker 1: it's a diminishing return at this point. Um they have 258 00:14:30,760 --> 00:14:34,800 Speaker 1: it every four years. Every four years the number of 259 00:14:34,800 --> 00:14:38,400 Speaker 1: bitcoins that are released. They're figuring out a math problem 260 00:14:38,520 --> 00:14:41,440 Speaker 1: is had. So when it started out, it was fifty 261 00:14:41,480 --> 00:14:43,920 Speaker 1: and now we just reached the four year point. Two 262 00:14:43,960 --> 00:14:46,760 Speaker 1: thousand thirteam is the beginning of the year, so now 263 00:14:46,840 --> 00:14:49,400 Speaker 1: it's twenty five. When you unlock it, a block that's 264 00:14:49,480 --> 00:14:52,400 Speaker 1: right in two thousand seventeen will be twelve fifty. So 265 00:14:52,480 --> 00:14:55,320 Speaker 1: every ten minutes they're releasing these coins. So it has 266 00:14:55,400 --> 00:14:59,440 Speaker 1: two three functions. Really, it's a two to satisfy the 267 00:14:59,480 --> 00:15:02,520 Speaker 1: transaction and you know, get everyone working together is a 268 00:15:02,520 --> 00:15:04,440 Speaker 1: big group to make sure the transactions are good. It 269 00:15:04,520 --> 00:15:06,200 Speaker 1: keeps the ledger up to date, keeps the ledger up 270 00:15:06,200 --> 00:15:10,120 Speaker 1: to date too. It releases more money into the system. Um, 271 00:15:10,160 --> 00:15:12,280 Speaker 1: and it's you know, carefully planned out, so it's not 272 00:15:12,320 --> 00:15:15,280 Speaker 1: like it's a very steady rise basically over the years, right, 273 00:15:15,320 --> 00:15:18,520 Speaker 1: so nobody so like a central bank can't flood the 274 00:15:18,520 --> 00:15:21,960 Speaker 1: market with more money to devalue what's out there. It's 275 00:15:22,520 --> 00:15:26,360 Speaker 1: you basically forty they know exactly how many coins will 276 00:15:26,400 --> 00:15:28,800 Speaker 1: be out there, and it will be twenty one million 277 00:15:28,840 --> 00:15:31,200 Speaker 1: on the nose. And then that's it. Yeah, it's all controlled. 278 00:15:31,640 --> 00:15:33,440 Speaker 1: And then the third thing it does, is it it 279 00:15:33,520 --> 00:15:37,480 Speaker 1: keeps the system secure. Yeah, so that's what mining is. 280 00:15:37,600 --> 00:15:43,240 Speaker 1: And each block two uh, it's very energy inefficient. Each 281 00:15:43,320 --> 00:15:46,520 Speaker 1: block to fully satisfy over the course of twelve months 282 00:15:46,960 --> 00:15:50,880 Speaker 1: takes about ten tho dollars worth of electricity. I read 283 00:15:51,520 --> 00:15:54,120 Speaker 1: way more than that. I read a d fifty k 284 00:15:54,560 --> 00:15:58,640 Speaker 1: for block for twenty four hours of hardcore data mining 285 00:15:58,760 --> 00:16:02,240 Speaker 1: or of hardcore bitcoin mining. Sorry, costs up to a 286 00:16:02,360 --> 00:16:06,840 Speaker 1: hundred and fifty thou dollars in electricity. Yeah, and that's 287 00:16:06,840 --> 00:16:09,160 Speaker 1: but that's with one of these there's like certain computers 288 00:16:09,200 --> 00:16:12,359 Speaker 1: out there that people have set up that are dedicated 289 00:16:12,520 --> 00:16:16,520 Speaker 1: just to bitcoin mine because bitcoinshit like two bucks apiece 290 00:16:17,280 --> 00:16:19,400 Speaker 1: five of those puppies. That adds up. And if you 291 00:16:19,400 --> 00:16:20,640 Speaker 1: can get more and more and more, and you have 292 00:16:20,680 --> 00:16:24,080 Speaker 1: computers dedicated to it, then people have they're they're just 293 00:16:24,160 --> 00:16:27,480 Speaker 1: bitcoin miners and they have computer systems or they're parts 294 00:16:27,480 --> 00:16:30,520 Speaker 1: of co ops that divide the bitcoin. Right. Well, that's 295 00:16:30,600 --> 00:16:32,080 Speaker 1: kind of the only way to do it now. They say, 296 00:16:32,080 --> 00:16:34,560 Speaker 1: if you're a single user, then you have virtually no 297 00:16:34,640 --> 00:16:38,000 Speaker 1: chance these days. I would imagine it just takes too 298 00:16:38,040 --> 00:16:41,360 Speaker 1: much computing power for that average you know, home computer, right, 299 00:16:41,360 --> 00:16:42,640 Speaker 1: And if you team out, even if you've got a 300 00:16:42,640 --> 00:16:45,160 Speaker 1: great system, if you team up with ten people with 301 00:16:45,200 --> 00:16:48,160 Speaker 1: a great system, then you're ten times. It's likely because 302 00:16:48,160 --> 00:16:50,480 Speaker 1: that was the other thing that the number of bitcoins 303 00:16:50,480 --> 00:16:55,000 Speaker 1: that come out or had right. And um, the math problem, 304 00:16:55,440 --> 00:16:59,200 Speaker 1: the encrypted math problem that is released as a block 305 00:16:59,720 --> 00:17:03,040 Speaker 1: because is increasingly difficult. They wanted to be hard, right, 306 00:17:03,120 --> 00:17:06,439 Speaker 1: that's the whole point. Um. And there was an article 307 00:17:06,560 --> 00:17:08,200 Speaker 1: I don't know if you read this that I sent 308 00:17:08,280 --> 00:17:10,960 Speaker 1: you that right now, you can still make money mining, 309 00:17:11,760 --> 00:17:14,480 Speaker 1: but it won't be long because it's a diminishing thing 310 00:17:15,040 --> 00:17:17,240 Speaker 1: before it's going to cost too much in power and 311 00:17:17,560 --> 00:17:20,119 Speaker 1: hardware to even make it worth your while. So I'm 312 00:17:20,160 --> 00:17:21,840 Speaker 1: kind of curious how that's gonna work out. Yeah. I 313 00:17:21,880 --> 00:17:26,640 Speaker 1: saw like a computer built specifically to mind bitcoins started 314 00:17:26,640 --> 00:17:30,080 Speaker 1: about six grand on eBay and that's like, again, the 315 00:17:30,200 --> 00:17:34,320 Speaker 1: electricity involved this just ridiculous. Yeah. Plus, if you're splitting 316 00:17:34,440 --> 00:17:37,320 Speaker 1: twenty five bitcoins, I mean that ain't a lot of 317 00:17:37,320 --> 00:17:40,600 Speaker 1: dough right, Well, it depends, like we'll see. Yeah. Um 318 00:17:40,720 --> 00:17:43,240 Speaker 1: so so that's it. That's the network. That's how the 319 00:17:43,240 --> 00:17:48,359 Speaker 1: the bitcoin network functions, right, Yeah, and it's beautiful. Think 320 00:17:48,359 --> 00:17:52,680 Speaker 1: about the elegantness of the figuring out a math problem 321 00:17:52,720 --> 00:17:56,080 Speaker 1: to unlock new coins. Is what you're doing to keep 322 00:17:56,119 --> 00:17:59,720 Speaker 1: the ledger up to date, that's awesome. So like it's 323 00:17:59,720 --> 00:18:02,920 Speaker 1: it's providing these three functions. And not only is an 324 00:18:02,920 --> 00:18:05,920 Speaker 1: open ledger, they have open source, so their their code. 325 00:18:05,960 --> 00:18:08,920 Speaker 1: If you're a programmer and you know what you're doing, 326 00:18:09,040 --> 00:18:11,120 Speaker 1: you can actually look at their code and figure it out. 327 00:18:11,800 --> 00:18:13,679 Speaker 1: Because it's not like it's not a big deal. If 328 00:18:13,680 --> 00:18:16,160 Speaker 1: you understand their code, it's not like you can hack 329 00:18:16,200 --> 00:18:21,080 Speaker 1: into them. It's very secure on that side of things, 330 00:18:21,119 --> 00:18:24,760 Speaker 1: but it can also be uh not secure. As we're learning, 331 00:18:25,040 --> 00:18:29,400 Speaker 1: hackers are now getting into like uh, the the like 332 00:18:29,480 --> 00:18:32,520 Speaker 1: you can actually convert your bitcoins into real cash, and 333 00:18:32,560 --> 00:18:35,200 Speaker 1: those are the places that are susceptible to being hacked 334 00:18:35,240 --> 00:18:38,280 Speaker 1: at this point, right right it is um just one 335 00:18:38,320 --> 00:18:42,640 Speaker 1: more thing about why it's secure or the in theory. Um, 336 00:18:42,880 --> 00:18:46,160 Speaker 1: when that computer figures out that math problem that unlocks 337 00:18:46,160 --> 00:18:48,919 Speaker 1: that block. Yeah, that what they came up with is 338 00:18:49,040 --> 00:18:52,400 Speaker 1: shared with every other computer in the network to verify 339 00:18:52,520 --> 00:18:56,480 Speaker 1: that this ledger is accurate and is that a hole? Yes, 340 00:18:56,600 --> 00:19:01,080 Speaker 1: So that's why that's why it's secure, because everybody knows 341 00:19:01,400 --> 00:19:04,800 Speaker 1: everybody's computer knows what's what, and if there's a discrepancy, 342 00:19:04,840 --> 00:19:07,399 Speaker 1: then it has to be worked out. That's why a 343 00:19:07,480 --> 00:19:11,760 Speaker 1: transfer bitcoins transaction can take a long time because it 344 00:19:11,840 --> 00:19:15,200 Speaker 1: has to go across all the network. Gotcha for a verification? Yeah, 345 00:19:16,440 --> 00:19:19,920 Speaker 1: all right, well that's cool, okay. But insecurity, well many 346 00:19:19,920 --> 00:19:21,600 Speaker 1: ways it can be insecure. Like we said, they can 347 00:19:21,680 --> 00:19:24,600 Speaker 1: hack into like when you go to a like what's 348 00:19:24,640 --> 00:19:28,160 Speaker 1: one of the places they listed for um converting back 349 00:19:28,160 --> 00:19:32,719 Speaker 1: to cash? Um bit spin this one, I believe, and 350 00:19:32,960 --> 00:19:36,240 Speaker 1: uh what was the other one. Yes, bit pay and 351 00:19:36,280 --> 00:19:40,679 Speaker 1: bits spin. They convert your bitcoins into credit or whatever 352 00:19:41,160 --> 00:19:44,360 Speaker 1: you can shop anyway, whatever, or or your local currency 353 00:19:44,400 --> 00:19:46,080 Speaker 1: like if you want to cash them out and get 354 00:19:46,119 --> 00:19:48,320 Speaker 1: your cash back, right, their companies that do that, and 355 00:19:48,320 --> 00:19:51,400 Speaker 1: that apparently is where hackers can get in there. Yeah, 356 00:19:51,440 --> 00:19:53,439 Speaker 1: and they can also get to Mount Cox, which is 357 00:19:53,480 --> 00:19:56,160 Speaker 1: the currency exchange, which apparently if you have an account 358 00:19:56,280 --> 00:19:58,760 Speaker 1: at Mount Cox, a lot of people are like, oh well, 359 00:19:58,800 --> 00:20:01,119 Speaker 1: this is like a bank. It's not like a bank. 360 00:20:01,680 --> 00:20:05,800 Speaker 1: And whether it's Mount Cox or whoever, Um, that's a 361 00:20:05,800 --> 00:20:08,960 Speaker 1: really bad place to actually keep your virtual currency. Because 362 00:20:09,040 --> 00:20:14,800 Speaker 1: number one, since it's a decentralized system, anywhere where there's 363 00:20:14,800 --> 00:20:18,119 Speaker 1: a bunch of people's stuff parked, that's a target. And 364 00:20:18,160 --> 00:20:20,159 Speaker 1: since there are fewer targets, that means that people can 365 00:20:20,200 --> 00:20:23,800 Speaker 1: get better at better at attacking them. Since a terrible 366 00:20:23,800 --> 00:20:26,399 Speaker 1: place to keep your your bitcoins. And then also a 367 00:20:26,440 --> 00:20:28,760 Speaker 1: lot of those places, a lot of those currency exchanges, 368 00:20:29,160 --> 00:20:32,439 Speaker 1: if they go under, your bitcoins go with them. And 369 00:20:32,480 --> 00:20:35,800 Speaker 1: that's the thing where have your bitcoins are gone? They're 370 00:20:35,840 --> 00:20:37,840 Speaker 1: just gone and you don't have them any longer, which 371 00:20:37,880 --> 00:20:40,240 Speaker 1: is why if you have a bitcoin wallet or account. 372 00:20:40,560 --> 00:20:45,119 Speaker 1: You want a physically removable backup of them somewhere a 373 00:20:45,160 --> 00:20:48,400 Speaker 1: flash drive or removable hard drive away from your computer, 374 00:20:48,640 --> 00:20:51,760 Speaker 1: so that if your computer crashes where Mount Cox goes under, 375 00:20:52,000 --> 00:20:55,200 Speaker 1: or the FED swoop in and sees something or freeze something, 376 00:20:55,640 --> 00:20:58,320 Speaker 1: you still have your bitcoins because you've got that that 377 00:20:58,440 --> 00:21:00,440 Speaker 1: account of it on your flash drive back. Yeah. I 378 00:21:00,440 --> 00:21:02,720 Speaker 1: would back it up two or three times exactly. I 379 00:21:02,800 --> 00:21:04,520 Speaker 1: did read one account of this guy that lost like 380 00:21:04,560 --> 00:21:07,439 Speaker 1: eight hundred of him because his laptop crashed. Oh my god. 381 00:21:07,560 --> 00:21:09,720 Speaker 1: But it was early on, so he was just like 382 00:21:09,760 --> 00:21:11,040 Speaker 1: it was no big deal at the time because they 383 00:21:11,040 --> 00:21:14,200 Speaker 1: were like twenty cents apiece. But can you imagine No, 384 00:21:14,400 --> 00:21:16,960 Speaker 1: I couldn't. So, I mean that's one of the dangers 385 00:21:16,960 --> 00:21:19,160 Speaker 1: of it and one of the risks. So let's talk 386 00:21:19,160 --> 00:21:21,320 Speaker 1: a little bit about this whole speculation thing in the 387 00:21:21,359 --> 00:21:25,320 Speaker 1: wild ride a bitcoin, because it's like the wild West 388 00:21:25,320 --> 00:21:27,919 Speaker 1: out there, so early on it and it's gone from 389 00:21:27,960 --> 00:21:32,560 Speaker 1: twenty cents at the beginning to hive about two hundred 390 00:21:32,560 --> 00:21:37,640 Speaker 1: and sixty dollars per bitcoin early this year, right uh 391 00:21:37,640 --> 00:21:41,399 Speaker 1: in two thousand and eleven, it went from uh thirty 392 00:21:41,440 --> 00:21:45,159 Speaker 1: dollars in the middle. I'm sorry, in two it was 393 00:21:45,200 --> 00:21:47,760 Speaker 1: worth a few cents. It rose to thirty bucks in 394 00:21:47,760 --> 00:21:50,960 Speaker 1: two thousand eleven, and then it dropped down towards the 395 00:21:51,000 --> 00:21:53,360 Speaker 1: end of the year to two bucks. Like, currencies are 396 00:21:53,400 --> 00:21:56,399 Speaker 1: not supposed to do that. That's and that's one of 397 00:21:56,440 --> 00:21:59,160 Speaker 1: the big problems is like it it cree's wildly all 398 00:21:59,200 --> 00:22:02,800 Speaker 1: over the place because of speculation. Yeah, some people are 399 00:22:02,800 --> 00:22:06,360 Speaker 1: attracted to that though. Yeah, like the cowboys are into that, 400 00:22:06,440 --> 00:22:09,600 Speaker 1: like get rich really quick and get out right. But 401 00:22:09,640 --> 00:22:12,280 Speaker 1: if you're the average person like buying some bitcoins because 402 00:22:12,280 --> 00:22:16,920 Speaker 1: you're really you know, believe in the anarchistic sentiment behind it, 403 00:22:17,160 --> 00:22:21,840 Speaker 1: then you're you're really at the whim of speculators who 404 00:22:21,880 --> 00:22:25,000 Speaker 1: can gain this system fairly easily because they're the only 405 00:22:25,040 --> 00:22:27,000 Speaker 1: ones who know how to do it. Because the community 406 00:22:27,040 --> 00:22:29,760 Speaker 1: is small enough well, and a lot of financial you know, 407 00:22:30,160 --> 00:22:32,760 Speaker 1: guru say it's a sucker's bet, and it's it's just 408 00:22:32,800 --> 00:22:35,560 Speaker 1: a bubble maker basically, is one one way to look 409 00:22:35,560 --> 00:22:37,920 Speaker 1: at it, at least for now, because it's too unstable. 410 00:22:38,000 --> 00:22:42,159 Speaker 1: It's like the Lawrence Welk show out there. Half of 411 00:22:42,200 --> 00:22:46,640 Speaker 1: our fans are going, huh so the deep Web. We've 412 00:22:46,680 --> 00:22:48,679 Speaker 1: mentioned a lot of people don't know this. I know, 413 00:22:48,720 --> 00:22:50,800 Speaker 1: Matt Frederick of stuff they don't want. You know, like 414 00:22:50,800 --> 00:22:52,600 Speaker 1: three years ago, came up to me. I was like, dude, 415 00:22:52,680 --> 00:22:56,000 Speaker 1: check this out. The Silk Road and the deep web 416 00:22:56,040 --> 00:22:58,480 Speaker 1: is a web that's not accessible. You can't go to 417 00:22:58,560 --> 00:23:00,479 Speaker 1: Google and type in deep web and say now I'm 418 00:23:00,520 --> 00:23:02,440 Speaker 1: on the deep Web. You have to have like special 419 00:23:02,480 --> 00:23:05,919 Speaker 1: software to take you to this deep web. Tour t 420 00:23:06,240 --> 00:23:09,520 Speaker 1: R and that's where bad things go on. Well, that's 421 00:23:09,560 --> 00:23:13,240 Speaker 1: a that's a I think it's like an operating system 422 00:23:13,280 --> 00:23:16,800 Speaker 1: that allows you to be entirely anonymous. And yeah, if 423 00:23:16,840 --> 00:23:18,600 Speaker 1: you don't have tour, I don't think you can even 424 00:23:18,600 --> 00:23:20,720 Speaker 1: get onto silk Row. But if you did, would be 425 00:23:20,760 --> 00:23:23,520 Speaker 1: a really bad decision because Silk Road is where you 426 00:23:23,560 --> 00:23:29,320 Speaker 1: go buy well, drugs, um, pretty much anything. I think 427 00:23:29,320 --> 00:23:32,280 Speaker 1: out of the thirty thousand things they offered, roughly twenty 428 00:23:32,680 --> 00:23:34,960 Speaker 1: of them were drugs. Yeah, and this is like there's 429 00:23:35,000 --> 00:23:37,920 Speaker 1: some dude in Chicago who's got a bunch of heroin 430 00:23:38,040 --> 00:23:41,560 Speaker 1: for sale, and you go use your bitcoins on Silk 431 00:23:41,640 --> 00:23:44,280 Speaker 1: Road to buy heroin and emails it to you, and 432 00:23:44,320 --> 00:23:47,000 Speaker 1: your bitcoins are putting new an escrow account. And then 433 00:23:47,000 --> 00:23:49,880 Speaker 1: when you say, oh, yeah, I got my heroine, thanks man. 434 00:23:50,080 --> 00:23:52,159 Speaker 1: I just came out of like an eight day stupor 435 00:23:52,920 --> 00:23:55,720 Speaker 1: that the escrow account releases the bitcoins to the guy 436 00:23:55,800 --> 00:23:58,840 Speaker 1: in Chicago, and that is going on right now. But 437 00:23:58,920 --> 00:24:01,160 Speaker 1: now that guy has a little addendum that says, would 438 00:24:01,160 --> 00:24:04,320 Speaker 1: you mind releasing before you do all the hair point exactly. Yeah, 439 00:24:04,400 --> 00:24:07,400 Speaker 1: don't forget um. But it's a thing like you can 440 00:24:07,400 --> 00:24:10,679 Speaker 1: buy like whatever you want. You can there are services 441 00:24:10,760 --> 00:24:13,560 Speaker 1: that you can hire hitmen. Yeah, this really troubles me. 442 00:24:13,680 --> 00:24:17,199 Speaker 1: And kidnappers and people to like rob someone's house or 443 00:24:17,359 --> 00:24:20,200 Speaker 1: burn down your house for insurance money like that can 444 00:24:20,280 --> 00:24:25,560 Speaker 1: hire someone black market reloaded is that? And then there's 445 00:24:25,560 --> 00:24:27,560 Speaker 1: another one called the Armory, which is apparently like an 446 00:24:27,680 --> 00:24:32,160 Speaker 1: arms marketplace and all of its all of this stuff 447 00:24:32,800 --> 00:24:36,280 Speaker 1: would not be possible were it not for bitcoin. And 448 00:24:36,359 --> 00:24:39,679 Speaker 1: you can understand that this has really kind of gathered 449 00:24:39,680 --> 00:24:43,640 Speaker 1: the attention of the FEDS. Yeah, well it's attracted more 450 00:24:43,680 --> 00:24:47,480 Speaker 1: than the Feds. The Silk Road actually, as of about 451 00:24:47,480 --> 00:24:51,160 Speaker 1: two about a week ago, was shut down really by 452 00:24:51,200 --> 00:24:59,440 Speaker 1: a unidentified hacker, basically a blackmailer named Lance G threatened 453 00:24:59,440 --> 00:25:01,960 Speaker 1: to crash the site with a what's called a d 454 00:25:02,080 --> 00:25:05,800 Speaker 1: d o S Distributed Denialist service, which is I think 455 00:25:05,800 --> 00:25:08,399 Speaker 1: they basically flood your site so much that it's inoperable. 456 00:25:10,400 --> 00:25:13,359 Speaker 1: So Lance G whoever that is, threatened to crash the 457 00:25:13,400 --> 00:25:18,159 Speaker 1: side unless they paid five thousand dollars, which everyone was like, 458 00:25:18,240 --> 00:25:21,639 Speaker 1: that's a really weird small amount. And so they're thinking 459 00:25:21,640 --> 00:25:25,639 Speaker 1: it might be either some like not someone that's interested 460 00:25:25,600 --> 00:25:26,919 Speaker 1: in money, but someone that just wants to see it 461 00:25:26,960 --> 00:25:31,000 Speaker 1: taken down. And some people speculate that the US government 462 00:25:31,040 --> 00:25:33,600 Speaker 1: is actually behind that. Well, you know, some people actually 463 00:25:33,680 --> 00:25:37,360 Speaker 1: speculate that the US government is behind bitcoin as well. 464 00:25:38,560 --> 00:25:42,560 Speaker 1: Either it's some genius economists, some genius mathematician, maybe somebody 465 00:25:42,560 --> 00:25:46,199 Speaker 1: who works for the government. Um or it's actually like 466 00:25:46,240 --> 00:25:49,480 Speaker 1: a government project. That's one of the things. There's a 467 00:25:49,560 --> 00:25:52,920 Speaker 1: really really great article called the Rise and Follow Bitcoin. 468 00:25:53,400 --> 00:25:56,440 Speaker 1: It was from BuzzFeed, I believe, or wired when it 469 00:25:56,480 --> 00:26:00,080 Speaker 1: was wired and um it was it wired and it's 470 00:26:00,119 --> 00:26:03,000 Speaker 1: just amazing. It's like a nice long form article. I'll 471 00:26:03,040 --> 00:26:04,960 Speaker 1: take you a little while to read, and um it's 472 00:26:05,000 --> 00:26:07,120 Speaker 1: from two th eleven, so like it's a little out 473 00:26:07,119 --> 00:26:09,639 Speaker 1: of date, like the big bubble hadn't happened yet, but 474 00:26:09,680 --> 00:26:12,399 Speaker 1: I mean it talks a lot about Satoshi Nakamoto and 475 00:26:12,480 --> 00:26:15,120 Speaker 1: like who he is, who he could be, and all 476 00:26:15,119 --> 00:26:17,359 Speaker 1: the wild theories running around. But it also gives you 477 00:26:17,400 --> 00:26:20,840 Speaker 1: a really good explainer of bitcoin and how it how 478 00:26:20,880 --> 00:26:24,480 Speaker 1: it operates. And Nakamoto supposedly got out too, if you 479 00:26:24,520 --> 00:26:27,600 Speaker 1: believe the story they tell you. Um, he's not like 480 00:26:27,680 --> 00:26:30,320 Speaker 1: sitting on some pedestal getting rich. Supposedly he created this 481 00:26:31,040 --> 00:26:33,280 Speaker 1: and then said now it is yours and got out. 482 00:26:33,720 --> 00:26:36,320 Speaker 1: But who knows. I have to get back to this 483 00:26:37,040 --> 00:26:39,720 Speaker 1: psy ops thing that we're working on in the Pentagon. 484 00:26:40,400 --> 00:26:42,840 Speaker 1: So as of now, the Silk Road is shut down. 485 00:26:43,000 --> 00:26:44,879 Speaker 1: I'm sure it will pop back up or something like 486 00:26:44,920 --> 00:26:50,600 Speaker 1: it will um pretty soon, you know. So the hacker 487 00:26:50,760 --> 00:26:54,080 Speaker 1: just basically crashed the site or disabled to I think 488 00:26:54,200 --> 00:26:57,560 Speaker 1: threatened to or maybe did. I'll have to look into that. 489 00:26:57,840 --> 00:26:59,920 Speaker 1: I'm not sure if it actually happened. And there was 490 00:27:00,040 --> 00:27:04,040 Speaker 1: a D D O S attack on Mountain Cox as well. Yeah, 491 00:27:04,119 --> 00:27:07,200 Speaker 1: and uh, you know the problem is when you don't 492 00:27:07,240 --> 00:27:11,119 Speaker 1: have any uh anything back in your currency it you know, 493 00:27:11,160 --> 00:27:13,560 Speaker 1: the value of bitcoin is plummeted when that happened because 494 00:27:14,280 --> 00:27:18,280 Speaker 1: of your transactions were halted, right, which is this is 495 00:27:18,320 --> 00:27:21,440 Speaker 1: one of the games that a speculator who's very I 496 00:27:21,480 --> 00:27:24,919 Speaker 1: guess hecker savvy. Where is a hacker? Let's call it 497 00:27:24,960 --> 00:27:29,000 Speaker 1: that UM could do to manipulate the value of of 498 00:27:29,040 --> 00:27:33,679 Speaker 1: bitcoin is like attack Mount Cox, let the value plummet, 499 00:27:33,720 --> 00:27:35,399 Speaker 1: and then go to one of the other exchanges that 500 00:27:35,480 --> 00:27:38,040 Speaker 1: aren't crashed and buy a bunch of them there and 501 00:27:38,040 --> 00:27:40,160 Speaker 1: then just let everything go back to normal and let 502 00:27:40,160 --> 00:27:42,919 Speaker 1: the value rise once more. It's definitely not stable. No, 503 00:27:43,119 --> 00:27:45,600 Speaker 1: it isn't. And um, you were saying that the silk 504 00:27:45,680 --> 00:27:49,800 Speaker 1: Row got hit by a hacker. Well, the FEDS have 505 00:27:50,520 --> 00:27:53,200 Speaker 1: finally interviewed Vaned. A lot of people have been waiting 506 00:27:53,200 --> 00:27:57,560 Speaker 1: for this because you can buy drugs, you can get 507 00:27:57,560 --> 00:28:01,040 Speaker 1: around paying taxes, you can hire a murderer. You can 508 00:28:01,080 --> 00:28:03,959 Speaker 1: do all these things thanks to bitcoin. And now the 509 00:28:03,960 --> 00:28:07,040 Speaker 1: the the Department of Homeland Security, right, not even the 510 00:28:07,080 --> 00:28:11,359 Speaker 1: i r S. Yeah, the DHS froze Mount Cox is 511 00:28:11,920 --> 00:28:16,960 Speaker 1: the the parent companies accounts yesterday? Yeah right, Well this 512 00:28:16,960 --> 00:28:18,800 Speaker 1: should give you a good idea of how things are 513 00:28:18,800 --> 00:28:22,879 Speaker 1: not stable. On Tuesday in May fourteenth, that story broke 514 00:28:23,400 --> 00:28:27,720 Speaker 1: that Mount Cox had been had been Did they shut 515 00:28:27,760 --> 00:28:29,720 Speaker 1: them down or did they just they froze some of 516 00:28:29,720 --> 00:28:32,040 Speaker 1: their accounts, and it was so a lot of like 517 00:28:32,080 --> 00:28:35,679 Speaker 1: the transfer companies, the companies that work with mount Cox 518 00:28:36,400 --> 00:28:39,040 Speaker 1: saying like, we're not doing anything with mount Cox anymore. 519 00:28:39,120 --> 00:28:41,800 Speaker 1: So if you want to make some purchase or whatever, 520 00:28:41,800 --> 00:28:43,800 Speaker 1: you're gonna have to figure out another way or use 521 00:28:43,880 --> 00:28:47,240 Speaker 1: somebody else. So that happened yesterday. At the same time, 522 00:28:47,320 --> 00:28:52,280 Speaker 1: another story was released yesterday that uh a startup will 523 00:28:52,400 --> 00:28:58,160 Speaker 1: someone who funds startups is investing three dollars into bitcoin Um. 524 00:28:58,200 --> 00:29:02,280 Speaker 1: They're interested in h making it easier to spend bitcoin currency, 525 00:29:02,320 --> 00:29:06,600 Speaker 1: They're making security better. They think those are good opportunities. Basically, 526 00:29:06,920 --> 00:29:09,280 Speaker 1: I make money on those are huge problems that this 527 00:29:09,320 --> 00:29:12,360 Speaker 1: currency has right now. So in the same day the 528 00:29:12,360 --> 00:29:16,680 Speaker 1: FEDS shut down mount Cox, one company invested three d 529 00:29:16,840 --> 00:29:21,840 Speaker 1: fifty grand and yesterday CNN money Um global risk strategist 530 00:29:21,880 --> 00:29:25,440 Speaker 1: Ian Bremer said predicted the end of bitcon, So that 531 00:29:25,520 --> 00:29:28,000 Speaker 1: just shows you like no one knows. He said, I'll 532 00:29:28,000 --> 00:29:30,400 Speaker 1: be highly surprised if this is around in ten years. 533 00:29:30,840 --> 00:29:34,160 Speaker 1: And what he thinks is going to happen is this 534 00:29:34,240 --> 00:29:37,920 Speaker 1: is the first one and someone's gonna learn Bitcoin will 535 00:29:37,920 --> 00:29:40,600 Speaker 1: not be around, but something else will pop up that 536 00:29:40,640 --> 00:29:43,360 Speaker 1: does it better and that may last exactly. Like somebody 537 00:29:43,760 --> 00:29:46,120 Speaker 1: in one of the articles we I think we researched 538 00:29:46,280 --> 00:29:49,560 Speaker 1: UM said, you know, bit Torrent wasn't the first P 539 00:29:49,680 --> 00:29:52,440 Speaker 1: two P file sharing network, and Skype wasn't the first 540 00:29:52,520 --> 00:29:55,880 Speaker 1: V O I P network exactly, so Bitcoin may not 541 00:29:55,960 --> 00:29:58,080 Speaker 1: be the first one. And there's a lot of rivals 542 00:29:58,480 --> 00:30:01,360 Speaker 1: just waiting to take over if coin falls. But the 543 00:30:01,920 --> 00:30:05,440 Speaker 1: it seems like the precedent has been established and it's 544 00:30:05,480 --> 00:30:08,440 Speaker 1: been shown like this can work. Whether or not it 545 00:30:08,480 --> 00:30:12,720 Speaker 1: will be allowed to work is a big question because again, 546 00:30:12,760 --> 00:30:15,080 Speaker 1: the Feds can always step in and shut down whatever 547 00:30:15,120 --> 00:30:17,000 Speaker 1: they want if if they want to go after a 548 00:30:17,000 --> 00:30:19,680 Speaker 1: Mount Cox, they can do that. Well, yeah, and the 549 00:30:19,720 --> 00:30:22,560 Speaker 1: big boys are already getting involved of course. Um. Amazon 550 00:30:22,680 --> 00:30:26,840 Speaker 1: now has Amazon coins that you can buy for the 551 00:30:26,920 --> 00:30:31,000 Speaker 1: Kindle network and spend them like money. So you realize 552 00:30:31,280 --> 00:30:34,240 Speaker 1: what we're talking about is the same thing that was 553 00:30:34,280 --> 00:30:36,720 Speaker 1: happening post Civil War in the US when eight thousand 554 00:30:36,760 --> 00:30:40,080 Speaker 1: different banks Russuman currency. That's what we're seeing right now, 555 00:30:40,080 --> 00:30:43,000 Speaker 1: but in a digital form. This is the beginning of it. 556 00:30:43,000 --> 00:30:46,560 Speaker 1: It's crazy, it's the wild West. It's pretty awesome. UM. 557 00:30:46,680 --> 00:30:50,360 Speaker 1: Aside from the Hitman, Yes, I don't think I have 558 00:30:50,360 --> 00:30:53,400 Speaker 1: anything else. Did you hear people get it? You know, 559 00:30:53,440 --> 00:30:55,680 Speaker 1: the guy from the lead singer of As I Lay Dying, 560 00:30:55,760 --> 00:30:58,600 Speaker 1: that metal band, I don't know them. He uh. He 561 00:30:58,760 --> 00:31:02,880 Speaker 1: got set up trying to buy a murder for hire 562 00:31:02,920 --> 00:31:06,360 Speaker 1: from an undercover detective to murder his ex wife through 563 00:31:06,400 --> 00:31:13,960 Speaker 1: bitcoin or just back full of cash. Yeah, yeah, wow, yeah, Yeah, 564 00:31:14,000 --> 00:31:16,320 Speaker 1: that's a tough one to get away with, although maybe 565 00:31:16,480 --> 00:31:17,959 Speaker 1: people get away with him and you just never hear 566 00:31:18,000 --> 00:31:20,080 Speaker 1: about it. Yeah. I hope it's a tough one to 567 00:31:20,080 --> 00:31:22,920 Speaker 1: get away with. That definitely should be hard to get 568 00:31:22,960 --> 00:31:25,400 Speaker 1: away with. Yeah. I think the moral of the story 569 00:31:25,480 --> 00:31:31,360 Speaker 1: is kill someone yourself. Just kidding. Um. So, if you 570 00:31:31,400 --> 00:31:35,080 Speaker 1: want to know more about bitcoin, it's it's pretty interesting 571 00:31:35,080 --> 00:31:37,560 Speaker 1: and there's a lot of really great writing all over 572 00:31:37,600 --> 00:31:40,360 Speaker 1: the web about it. Yeah. I would first go to 573 00:31:40,760 --> 00:31:43,080 Speaker 1: our beloved How Stuff Works, type that word in the 574 00:31:43,080 --> 00:31:46,520 Speaker 1: search bar, then maybe start next at Wired. The Economist 575 00:31:46,560 --> 00:31:49,000 Speaker 1: has a good explainer. Mother Jones has some good stuff 576 00:31:49,040 --> 00:31:52,000 Speaker 1: on it. Go check it out or check the news feed, 577 00:31:52,080 --> 00:31:56,000 Speaker 1: because literally every day you're gonna get some new changing story. 578 00:31:56,760 --> 00:31:58,960 Speaker 1: I mean, by the time this is released, there may 579 00:31:58,960 --> 00:32:02,840 Speaker 1: not be any bitcoins in two weeks. Who knows, but 580 00:32:02,920 --> 00:32:05,680 Speaker 1: there will be yeah, I hope so, or else they're 581 00:32:05,680 --> 00:32:08,480 Speaker 1: gonna have to add an e D to how bitcoin worked? 582 00:32:08,640 --> 00:32:11,200 Speaker 1: Do you have any? Have you bought any? No? I 583 00:32:11,200 --> 00:32:15,920 Speaker 1: mean I'm the fool. I think I said a search 584 00:32:15,960 --> 00:32:17,960 Speaker 1: bar in there somewhere. So that means it's time for 585 00:32:18,000 --> 00:32:20,520 Speaker 1: a message break right, that's right, and then a really 586 00:32:20,560 --> 00:32:28,480 Speaker 1: good listener mail. I now, Chuck, it's time for listener mail. 587 00:32:28,600 --> 00:32:32,760 Speaker 1: Thank you, sir. This is from pink Chris Pinkerton, who 588 00:32:32,760 --> 00:32:35,480 Speaker 1: has been a fan of our Showa very beginning and 589 00:32:35,560 --> 00:32:37,960 Speaker 1: active on our Facebook and the famous detective and a 590 00:32:37,960 --> 00:32:40,560 Speaker 1: good guy. That's right. So this is about e c 591 00:32:40,720 --> 00:32:44,680 Speaker 1: t RT electro convulsive therapy podcast that just dropped in 592 00:32:44,760 --> 00:32:48,040 Speaker 1: real time and uh he has a story. While in 593 00:32:48,120 --> 00:32:50,520 Speaker 1: high school, guys in Omaha, Nebraska, I met two girls, 594 00:32:50,680 --> 00:32:53,760 Speaker 1: Gloria and Susan. For about three years, we were inseparable. 595 00:32:53,800 --> 00:32:57,440 Speaker 1: We would hang out after school party together. Glory and Susan. 596 00:32:57,440 --> 00:32:59,840 Speaker 1: We're even closer and sometimes I was just a third 597 00:33:00,000 --> 00:33:03,840 Speaker 1: ill another feeling buddy. Yeah. Uh. The girls, being a 598 00:33:03,920 --> 00:33:05,680 Speaker 1: year younger than I, stayed in school when I was 599 00:33:05,720 --> 00:33:08,840 Speaker 1: shipped off to join the marine corps or not what 600 00:33:08,960 --> 00:33:12,400 Speaker 1: shipped off. He chose to go shipped out. Yeah, we 601 00:33:12,480 --> 00:33:15,440 Speaker 1: lost touch, but then eventually I moved back to Des Moines, Iowa, 602 00:33:15,480 --> 00:33:18,080 Speaker 1: and I found Susan living there as well. She informed 603 00:33:18,080 --> 00:33:19,560 Speaker 1: me that should call Gloria and fill her into the 604 00:33:19,600 --> 00:33:22,800 Speaker 1: misyears while I was away. Apparently Gloria had a daughter 605 00:33:23,160 --> 00:33:27,400 Speaker 1: who passed away under terrible circumstances and became very depressed 606 00:33:27,880 --> 00:33:30,360 Speaker 1: after the loss of her daughter, and Um actually had 607 00:33:30,400 --> 00:33:34,720 Speaker 1: to undergo ect treatment for depression. In your podcast, you 608 00:33:34,760 --> 00:33:37,560 Speaker 1: stated there slight memory loss, but in my experience that 609 00:33:37,680 --> 00:33:40,880 Speaker 1: is an understatement. Gloria had no clue who I was, 610 00:33:41,240 --> 00:33:43,960 Speaker 1: did not remember any of our high school years. Gone 611 00:33:44,000 --> 00:33:47,520 Speaker 1: were the memories of harassing teachers, making out in the auditorium, 612 00:33:47,520 --> 00:33:49,680 Speaker 1: and memories of working on my car in shop class. 613 00:33:50,320 --> 00:33:52,760 Speaker 1: Apparently she was pretty good with a wrench, So we 614 00:33:52,840 --> 00:33:55,360 Speaker 1: get to tell her all over again. Uh yeah, Um. 615 00:33:55,400 --> 00:33:57,280 Speaker 1: As it turned out, she had forgotten Susan as well, 616 00:33:57,320 --> 00:34:00,000 Speaker 1: but not as much as she had forgotten me, because 617 00:34:00,040 --> 00:34:02,760 Speaker 1: Susan was there for her throughout the treatment, and Gloria 618 00:34:02,800 --> 00:34:04,640 Speaker 1: has been able to recall more memories. Have heard you 619 00:34:04,760 --> 00:34:07,000 Speaker 1: to this. It's very sad. To me that I've lost 620 00:34:07,080 --> 00:34:09,719 Speaker 1: a friend. Um, not because of intent, but due to 621 00:34:09,760 --> 00:34:12,280 Speaker 1: a treatment I failed to help her through and failed 622 00:34:12,280 --> 00:34:15,160 Speaker 1: to understand. That is one regret I will always have, 623 00:34:15,239 --> 00:34:16,799 Speaker 1: and it shames me to think that she has no 624 00:34:16,880 --> 00:34:19,439 Speaker 1: clue who I am and how important to my life 625 00:34:19,480 --> 00:34:22,640 Speaker 1: she was. Ever since, I vowed to tell people how 626 00:34:22,680 --> 00:34:25,320 Speaker 1: important they are to me in case they never remember, 627 00:34:25,360 --> 00:34:27,160 Speaker 1: at least all know that I tried to explain that. 628 00:34:28,160 --> 00:34:32,360 Speaker 1: And uh, Pink, let yourself up, buddy, Um, you were 629 00:34:32,400 --> 00:34:34,359 Speaker 1: in the Marine Corps. You were serving your country and 630 00:34:34,800 --> 00:34:38,960 Speaker 1: it was a very unfortunate series of events, and so um, 631 00:34:39,160 --> 00:34:41,960 Speaker 1: take that off your shoulders. I say, uh. And Chris 632 00:34:42,000 --> 00:34:44,319 Speaker 1: goes on to say, enjoy your day, guys, smile and 633 00:34:44,320 --> 00:34:47,520 Speaker 1: have fun. And that is Chris Pinkerton and Demine, ps, 634 00:34:48,000 --> 00:34:50,040 Speaker 1: could you tell Jill Marie McFadden that she has a 635 00:34:50,080 --> 00:34:53,239 Speaker 1: love of my life? I think you just think, yeah, 636 00:34:53,320 --> 00:34:57,080 Speaker 1: exacinitely done. Thanks for the words, pink. He's always super 637 00:34:57,120 --> 00:35:00,600 Speaker 1: supportive and like just my sky. Yeah, clearly, Yeah, thanks 638 00:35:00,640 --> 00:35:03,840 Speaker 1: a lot, pink. Um, that's a wow. If you have 639 00:35:03,880 --> 00:35:08,840 Speaker 1: a story that you want to tell us, almost overwhelmingly depressing, 640 00:35:09,560 --> 00:35:11,640 Speaker 1: we want to hear that. Um, You can tweet to 641 00:35:11,719 --> 00:35:13,680 Speaker 1: us at s y s K podcast. You can join 642 00:35:13,760 --> 00:35:15,680 Speaker 1: us on Facebook dot com slash stuff you Should Know. 643 00:35:15,800 --> 00:35:18,040 Speaker 1: You can send us an email of the Stuff podcast 644 00:35:18,080 --> 00:35:20,319 Speaker 1: at discovery dot com and join us at our home 645 00:35:20,360 --> 00:35:28,279 Speaker 1: on the web at stuff you Should Know dot com. 646 00:35:28,320 --> 00:35:30,759 Speaker 1: For more on this and thousands of other topics, is 647 00:35:30,800 --> 00:35:40,080 Speaker 1: it how stuff works dot com with over a hundred 648 00:35:40,080 --> 00:35:42,200 Speaker 1: thousand titles to choose from. 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