Most people got into big coin twenty seventeen and they only saw up up up up parabolic up and it was like it was like pennies from heaven it was like wonderful and then a lot of volatility hit over christmas so im assuming theres a lot of indigestion and fear and panic and self loathing and all sorts of stuff happening so were going to look at this article that jamison lup as we mentioned when we were hanging out with him for the big Queen Birthday Party last night and i want to talk about take a step back to understand where big queen came from and by understanding the genesis of the genesis bloc that happened on january third two thousand and nine understand where the future might be what might happen in nine years from now and the rise of the cipher punks this is an important term to understand in the cypherpunks because right now most of the tension for all the newbies involved in cryptocurrency is all about the corporate side everything and c. And b. C. Bloomberg what theyre focusing on and took for us to watch c n b c and bloomberg is quite interesting because its its not at all what most people although like the original gangsters of bitcoin nobody really talks about these arent what are important to the Big Community but its a corporate side and thats their side of the story but were looking at the origin what happened from bitcoin to block chain to distributors ledgers the cryptocurrency space is fast evolving to the point where it can be difficult to see which direction headed but were not without clues on many of the innovations in the space are new they are. Built on decades of work that led to this point by tracing this history we can understand the motivations behind the movement that spawned it coin and share its vision for the future so he starts with the history which was in the seventys and at that time cryptography was invented and created and developed by the u. S. Military by the likes of the n. S. A. And cia mostly n. S. A. So they developed cryptography and it was at that time that all of the guys with the knowledge of that this was considered basically state secret is like you know you cant just sell somebody u. S. Military technology this was considered military technology to tell them about cryptography to tell them about encryption so in the seventys was crypto war one postscript to war one the first against the government they wanted to open source and share this Christian Technology and order to keep the internet and Communication Private this notion of privacy not secrecy privacy for the individual participating on line the idea of privacy isnt shrine and in the constitution clearly you can interpret there the right to assemble as the right to assemble and communicate privately. If that were not the case pretty for the American Revolution if there were no private meetings to think about the American Revolutionary war without George Washingtons ability to message privately there in the the colonies to organize the the war against the empire yeah well he obviously needed secrecy these were secrets he was keeping from the crown and there is a legitimate reason for secrecy and all these early cryptographers did understand that you wanted secrets kept from your enemies and you know it during World War Two we didnt want the nazis to have our. Our knowledge we use those you know native americans so they spoke the language that they not going to speak we were keeping information secret from them however theres privacy these curtains are open right now behind us because where everybodys going to watch us on you tube were not trying to hide anything were happy for anybody to walk past there and look at us but if we were Walking Around naked or in our underwear or you know just hanging out with our friends here we do watch. You can file simply read dutch if youve ever been to answer them they dont seem to have curtains they dont seem to mind not having much privacy but nevertheless were not were american and were in america and you know you you want to keep some things private you want your own intimate private space this is what they want to maintain for the people so then he goes into the one nine hundred eighty s. He lists a few of the key people remember this the title of this article is on the rise of the cypherpunks its really we cant get into it here we dont have enough time but you should go read it and find out the history of it but it was in one thousand nine hundred two where the term cypherpunks was first coined San Francisco of course everything happens there in one thousand nine hundred two eric hughes timothy c. May and john gilmore founded a small group that met monthly a gilmores company Cygnus Solutions in the San Francisco bay area the group was humorously termed cypherpunks as a derivation of cipher and cyberpunk the cypherpunks mailing list was formed at the same time and just a few months later eric hughes published a cypherpunks manifesto he wrote privacy is necessary for an open society in the electronic age privacy is not secrecy a private matter is something one does not want the world to know but a secret matter is something one doesnt want anybody to know privacy is the power to selectively reveal oneself to the world so this was the birth of the Cypherpunk Movement this these are the. People the cypherpunks who invented the technology that is that is the Foundation Upon which bitcoin is built right there were getting into the how we got to Genesis Block and the idea of having private messages require electronically required advantage as a technology and i believe at some point in the story the governments work in creating encryption was kind of released was it was so that out and into the wild it was released finally after a big battles between these guys in the ninetys in San Francisco and the government and there were threats to arrest there were threats that they were revealing state secrets im and thats important to understand thats in the documentation here that hes talking about but then the technology here just like member in the last episode we talked about the precambrian explosion of all these ideas of merging here here were the ideas that went into it in in the you know biological life there were creatures with seven eyes creatures with ten eyes creatures with three eyes you know there were also accident attempts had various configurations but you could see that eyes were going to be a good evolutionary design it was it was useful and eventually to eyes was the one that was settled on that was the standard upon which many biological creatures emerged. That is what those guys those cypherpunks were laying out the basically the standards upon which between was built and one of the things of how to keep your messages private how to secure it was it to set incentivize people to keep it private and he mentions that in one thousand nine hundred seven dr adam back created hashcash which was designed as an antispam mechanism that would essentially add a time in computational cost to sending email thus making spam. On economical he envisioned that hashcash would be easier for people to use then dr charles digit cash which was created a decade earlier says there was no need for the creation of an account hashcash even has some protection against double spending then later he mentions that dr de published a proposal for the money a practical way to enforce contractual agreements between anonymous actors he described two interesting concepts that should sound familiar first a protocol in which every participant maintains a separate database of how much money belongs to a user secondly a variant of the first system where the accounts of who has how much money are kept by a subset of the participants who are incentivized to remain honest by putting their money on the line so obviously copy some of those. Evolved it evolved from those concepts right well you know i say often that if you look at gold as a periodic album number seventeen i mean those unique attributes that make a great for money these are big coin did not born in a vacuum it has got forty years of history to it and its evolved through all these technologies its a unique protocol and it like gold is attracting a huge amount of Capital Force for the for the achievement and you cant say that you can simply go out there and create another one there are competitors of course just like there are competing species on planet earth for energy and survival but theres only one the apex predator or that is man at the moment before he dies of all the garbage. That he goes into the two thousand as you mentioned gold and thats one of the ideas like all the ideas from our history of money from our history of privacy of being humans and evolving higher intellectual you know speaking freely amongst each other in these groups and speaking about ideas no matter how crazy or stupid they might seem and they invention emerge into powerful you know robust systems so he mentions how funny. Who recently passed away he and two thousand and four created work which was called the reasonable proof of work which built on the backs house cast and then of course in exile though in two thousand and five he did big gold which was digital collectible so these ideas obviously you know bitcoin is often called gold two point zero zero and in fact the i. R. S. Does qualify it as a commodity as a property an asset like gold so these are this is the evolution and then hes predicting where the future will go and thats right also the white paper the toshi why paper is its a big system for digital cash transmission and moving digital caster paraphrasing which is sets off most inquiries into this onto a bit of a skewed path because theyre looking at it in one use case the the replacement for painless use case which is to ignore the entire history of this entire movement and to ignore Everything Else that this can possibly do including the obvious references to gold and much of the white paper gold comes from dervish and from a big golden disk all has been stored values always been a key to this whole thing store of value means of exchange of Payment System or actually what the genesis the origin of this is about privacy i mean. Genesis is about privacy and the ability to protect it electronically ended up with where we are today the Cypherpunk Movement is the Genesis Movement to understand you one of those even. Going without first studying the cypherpunks thats why feeling so shes white paper in two thousand and eight did mention it he mentioned has cash and be money and he in fact sotto she emailed way day directly and mentioned that he learned about the money from dr back so this is he whoever said toshi or they were came from the cypherpunk where. And its important to understand the research cypherpunk because many people have piled into big queen they might now be distressed about prices and about that but its about an idea its much bigger than just prices are theres a saying dr baca still alive hes on twitter hes on twitter and if you have a quote you know if you want to find out what its about is it really big cash ask your back what he thinks about it hell give you the straight dope all right well weve got to take a break well be back with love more right after the break. Hello my names peter and ive been living in bushnell for about seven years and this is a film about just some of the crazy things ive got to see a time. When youre going to get. Along youve got to just run their store do a deep fry because the pirates of the gun are. Still does not get. Through to the practical. Man. Welcome back to the kaiser report imax keyser time out to go to miami speak with richard hart hes a bit coy with susie as to knows what hes talking about actually when it comes to technology and Derivatives Trading ive been following his you tube channel for quite some time now richard welcome thank you max pleasure being here i guess we can avoid we got a look at this big point gas just trading just now theres a lot of drama its the drama of the month club on bitcoin all was you got some insight into whats happening a big cash can you dive into that a little bit richard oh its real simple if i if i made a report cash and then you know had somebody dressed up like you make a separate channel and then told everyone that it was the real max kaiser be pretty upset about that when you put a lot of years and work into building up your brand and making something of quality to have someone else come along that had nearly no say and have a thing was built never wrote a proven proposal never improve the code you know basically a leech you know if a leech came along and said that max kaiser cash was a real mix for kaiser report youd be pretty upset about that and in the normal Business World it would be illegal brando lucian its you know stealing the goodwill of another company through confusion for your get rich quick project so you know i dont like i dont like people to pretend to compete i like real competition real competition means you get your own name you build your own unique value add and you compete you compete on price you can you know features you know if you cheat and you just copy and confuse people and have the maximum similar logo the maximum similar name the maximum similar User Experience but. Behind the scenes its totally fake you know the same developers dont work on your project the technologys liking behind you know it its gross and it would be illegal in any legacy business but because no one owns the big dot com or you know name its hard for them to find a legal standing by which to sue the impostures which is unfortunate so theres a couple of points or first as as youre getting into that there its plagiarism clearly the big cache of plagiarising theyre there pirating the bit coin name and also i guess you could point to folks in this trauma like roger fair for example they have control over bitcoin dot com the domain name which is mary misleading because people go there having heard about because and then their lead to something completely different you betcha on your podcast before and your Youtube Channel that the developers i created bitcoin an actor like roger verus profited handsomely from that so its a real kick in the teeth to them plagiarize and steal the name still the brand and come up with this clone to come up with a you know a bad chinese imitation as some of called it but theres another part of the drama and that now youve got Financial Media likes in b c c n b c fast money are now entering into this without doing any Due Diligence without doing any research theyre pushing whats clearly a fraud and this is this is i want to get your take on this because this is new to the whole crypto history of space and that youve got now c. And b. C. Bloomberg and other mainstream Financial News is now covering crypto how is this going to play out your thoughts richard libertarians hate Government Intervention laws rules they want everything to be peer to peer they dont want big brother involved and they forget how the. Past really was and every one of these laws and regulations came about because someone was doing something evil or shady. And. Time goes on these laws of protective people they forget why the law was first instant instantiated so you know youve got people showing their own bags on Financial Media that are heavily invested and that type of activity is not legal in the in the stock market you know you if youre if youre the c. E. O. Of a publicly listed company you have to abide by strict rules regarding Forward Looking Statements and making promises to people and Insider Trading and because crypto currency is are not regulated in that way all of the problems that you saw in the past from people talking their own book Insider Trading you know wash trading where you pump up the price by selling to yourself at increasingly higher prices you know all of those problems are theyre back theyre here again and this is funny for for people that hate the government so much to complain and cry for Government Intervention intervention when things go wrong like this be cashed launch on g. To x. They told everyone that it was going to come out in january. Then they surprise watched it why would you surprise launch a new Financial Product increasing volatility volatility decreasing peoples time to plan decreasing peoples time to have their coins where they need to be terribly terribly stupid. To no ones benefit except insiders and you know. If if there was ever reason to see the financial regulators come down on their currency businesses in the United States going against your own road map and instantly listing something against your own advice days earlier. I can think of a more clear reason to demand it you mentioned client base there in j. Dax up there San Francisco headed up by Brian Armstrong and this is been a tension in the crypt documentary for a while because youve got the corporate Crypto Community youve got for example a coin base youve got bit pay youve got other big corporations who are tied in with v. C. Money theyre looking for exit strategies are looking for quick quick profits this is been a bit of attention because on the other hand theres a part of community i guess you could call it the cypherpunk Community Going back to the origins of bitcoin and the technology that came out of the Cypherpunk Movement and so these two not pitted against each other in a new way on one hand you could say this has been going on for hours since the creation of big coin this is always been tension there but secondarily or another way the questions got to be asked if in fact were recreating all the problems we had with wall street all over again whats the prognosis for big coin will it get through this latest drama with your thoughts on that you know you talk about conflict of interest one of the investors in pitt pays roger for Roger Verbeck im speaking at heart he holds a majority of his savings in be cash so he says publicly and it would match with clothing that he wears which is always a b c h please shirt used to be a big coin shirt you know it going jesus turned into becoming judas now the only things he says about the coin are negative and demeaning just pretty insulting based on the fact that his little get rich quick project is built on the hard work and effort and labor of the because encoders that built it you know when he stole their workers benefiting from their work when he forked it and didnt just take the code took the name took the logo and so now we dont have that problem just with roger for we also have the problem with Brian Armstrong going place he doesnt like to coin he holds a majority of his wealth and i fear him so i hear. And every time you hear him speak about that point versus there him he says you gotta go where the developers are going so i think its pretty funny because thats for the developers are going to lose money thats where they get lured into a honey trap of making buggy smart contracts that lose millions of dollars its much harder to make smart contracts because that lose millions of dollars because weve purposely restricted the attack surface so its harder to screw up and lose money so less money is lost when Brian Armstrong one of the you know the c. E. O. Of the biggest on border in United States right now doesnt like that point so much so he hasnt implemented segue which gives us twice the Processing Power and you know more security transactional ability secured basic boost to secure and all these good things that came from. Being implemented you know Brian Armstrongs team doesnt do and his team also doesnt approve the biquad protocol and no one on his Developer Team makes any improvements to because well thats pretty terrible you know when their core product that they sell the most of which is because he speaks negatively about publicly and his team does nothing to improve and he rolls in the this this copy this terrible copy that doesnt even have segway it. Its bad and its all conflict of interests and you know i would be happy to see a financial related later or the directors of coin base replace him a c. E. O. Because i do not believe hes treating their core product fairly and if you saw this most recent launch of. The b. Cash token. Surprise release which wrecked a lot of peoples entire wealth you know life savings lost. I dont know doesnt seem like the kind of guy that should be in charge of a billion dollar endeavor. You know if for a moment here. Talk about what your view is about lets say bitcoins push back i mean what whats happening on the other side of the equation we have continued adoption of continued awareness. Where do you see where do you get me some good news a big point you know because one is the only product that has good legal. Backing so theres laws which specifically name because that allow you to get Good Bank Relationships with it to get custodial services for instance or gemini where a larger institution could purchase a bunch of back on and have a license insured bonded reason to believe it wouldnt get stolen or hacked. Other crypto currencies dont have that we also have the c. M. E. Futures the largest market in the entire planet by the c. B. O. T. Which does about a quarter of the volume which is still quite amazing we have the best developers in the entire world working on this weve got first mover advantage the greatest liquidity they most secure Platform Software that you know isnt buggy really works doesnt have emergency down targeting problems like the fake impostors have had and you know we do have some problems we have a unit bias problem where you know people want to own a single point of a thing and since milli bits isnt popular they choose things like light coin or b cash because theyre cheaper and you know that puts the coin a disadvantage on a product like point base where people just want to buy they just want to get in they dont have time to figure out whats good and why so they just click market buy and you know they get they used to have three products there they could market by now theyve got fourth product unfortunately the worst possible product you could add. Or close. And its going to be a fight you know if wall street wants to step in and start long in the futures the declines going to you know more dominance in the old coins will die more wall street doesnt want to step in and start long and that cheaters contract to take advantage of the new cool institutional relationships and i think the all coins are going to pump and people are going to take advantage of that you know this bias and try and get that next you know smaller market cap easier to a point that might give them a higher percentage return its going to be a fight so richard youve been in the game sense i believe twenty eleven we started covering big coen twenty eleven you know weve been in it almost from the inception weve seen more than once at least three or four times massive corrections in the space fifty sixty seventy percent ninety percent in one case where are we on the timeline there do you i mean first of all i just instead of asking you that question let me ask you this can you stick around for a second segment and well get into that in a second segment yeah i love anyway thanks for being on this segment richard hart and thats going to do it for this edition of the kaiser report with me max kaiser Stacy Herbert like to thank our guest richard hart hes got a outstanding you tube channel check it out if you want to catch us on twitter its kaiser report until next time. 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