1 00:00:06,467 --> 00:00:08,969 - [Kal] This thing we call the global economy 2 00:00:09,011 --> 00:00:11,597 has been around for a long time. 3 00:00:11,638 --> 00:00:13,432 Here, we see early traders trying 4 00:00:13,474 --> 00:00:16,769 to settle on a price for, I'm gonna say, clubs? 5 00:00:16,810 --> 00:00:18,061 (electronic music) 6 00:00:18,103 --> 00:00:20,272 Things got only slightly more civilized 7 00:00:20,314 --> 00:00:24,276 when we invented something called money. 8 00:00:24,318 --> 00:00:26,737 Now, I know you may think you know what money is, 9 00:00:28,530 --> 00:00:29,948 but do you? 10 00:00:31,617 --> 00:00:33,577 We spend all our lives trying to get it, 11 00:00:33,619 --> 00:00:38,123 but what has inspired such divine faith in a piece of paper? 12 00:00:38,165 --> 00:00:40,083 Is it intrinsically valuable? 13 00:00:40,125 --> 00:00:42,461 Or is it all just a big lie, like when your kid 14 00:00:42,503 --> 00:00:45,130 gives you a coupon for a back rub. 15 00:00:45,130 --> 00:00:47,841 The secret behind money is the big mystery 16 00:00:47,883 --> 00:00:51,011 at the center of the global economy. 17 00:00:51,053 --> 00:00:54,014 We all use it every day, but have you ever 18 00:00:54,056 --> 00:00:56,892 stopped and asked why this doesn't 19 00:00:56,934 --> 00:00:59,269 represent money, but this does? 20 00:01:00,312 --> 00:01:01,355 Or even? 21 00:01:06,068 --> 00:01:10,239 Whether you like it or not, we're all connected by money. 22 00:01:10,280 --> 00:01:14,076 I'm Kal Penn, exploring this giant beast 23 00:01:14,117 --> 00:01:16,453 that is the global economy. 24 00:01:17,996 --> 00:01:20,999 (suspenseful music) 25 00:01:28,257 --> 00:01:29,508 What if you didn't trust anyone? 26 00:01:31,176 --> 00:01:33,971 What if you thought believing in money was dangerous? 27 00:01:35,180 --> 00:01:36,974 So dangerous that you were sure 28 00:01:37,015 --> 00:01:39,852 it would eventually get you killed. 29 00:01:39,893 --> 00:01:42,145 Then you might be like preparedness experts 30 00:01:42,187 --> 00:01:43,772 Jane and Rick Austin. 31 00:01:45,524 --> 00:01:48,569 They've built this isolated hidden compound 32 00:01:48,610 --> 00:01:51,780 to get ready for a worldwide financial collapse. 33 00:01:53,490 --> 00:01:57,536 - When we have a total financial breakdown, 34 00:01:57,578 --> 00:02:00,163 people's first concern is gonna be eating. 35 00:02:00,205 --> 00:02:03,542 80% of the population will be dead in two months. 36 00:02:03,584 --> 00:02:05,335 People will literally be killing each other 37 00:02:05,377 --> 00:02:07,296 and eating each other for food. 38 00:02:07,337 --> 00:02:09,590 (Kal laughs) 39 00:02:12,843 --> 00:02:16,471 So the people that'll be left, 40 00:02:16,513 --> 00:02:19,975 the 20% will be people like us that grow our own, 41 00:02:20,017 --> 00:02:23,145 and the really, really, really bad psychopaths. 42 00:02:23,186 --> 00:02:25,314 - And you're prepared-- 43 00:02:25,355 --> 00:02:27,232 - We're prepared for whatever happens, however it happens. 44 00:02:29,192 --> 00:02:31,361 - [Kal] Rick and Jane left everyone else behind 45 00:02:31,403 --> 00:02:34,907 to grow and raise everything they need to survive. 46 00:02:34,948 --> 00:02:36,992 If the shit goes down, they are ready 47 00:02:37,034 --> 00:02:41,246 to go off-grid and be entirely self-sufficient. 48 00:02:41,288 --> 00:02:44,416 - This is the secret garden of survival. 49 00:02:47,210 --> 00:02:48,795 I call it the secret garden of survival 50 00:02:48,837 --> 00:02:50,881 'cause everything is really kinda camouflaged. 51 00:02:52,382 --> 00:02:54,009 Most people wouldn't know what food is 52 00:02:54,051 --> 00:02:56,511 unless it had a label and it was in a package. 53 00:02:56,553 --> 00:02:58,180 If you looked down here, you'd just 54 00:02:58,221 --> 00:03:00,349 kinda look and say, well, this property is abandoned, 55 00:03:00,390 --> 00:03:02,142 there's nobody here, nothing to see here, 56 00:03:02,184 --> 00:03:03,644 go on to something else. 57 00:03:03,685 --> 00:03:05,145 - Oh, so it's designed that way purposely? 58 00:03:05,187 --> 00:03:07,856 - It's designed that way, yeah. 59 00:03:07,898 --> 00:03:10,067 In a grid down situation, money isn't gonna 60 00:03:10,108 --> 00:03:12,653 buy you any food when there's no food to buy. 61 00:03:14,237 --> 00:03:19,242 Everything we have here is our currency. 62 00:03:19,284 --> 00:03:20,744 - Was the desire to do this because of 63 00:03:20,786 --> 00:03:22,871 a lack of trust in what the dollar is? 64 00:03:22,913 --> 00:03:24,665 - Yes. 65 00:03:24,706 --> 00:03:26,792 It's only worth what people think it's worth. 66 00:03:26,833 --> 00:03:29,002 And at some point, it may not be worth anything. 67 00:03:31,463 --> 00:03:34,549 - [Kal] What drove Rick and Jane to this life? 68 00:03:34,591 --> 00:03:37,177 What made them give up restaurants and grocery stores 69 00:03:37,219 --> 00:03:38,762 to take on hours of daily labor 70 00:03:38,804 --> 00:03:41,056 just to meet their basic needs? 71 00:03:41,098 --> 00:03:42,432 - So I'm gonna go in the refrigerator 72 00:03:42,474 --> 00:03:46,186 and I'm gonna have fun. 73 00:03:46,228 --> 00:03:48,647 - [Kal] For years, Jane worked in an office, 74 00:03:48,689 --> 00:03:51,233 but like many other Americans, she and Rick 75 00:03:51,274 --> 00:03:54,069 were hit by the 2008 financial downturn. 76 00:03:54,111 --> 00:03:57,072 Now, she's Survivor Jane and today, 77 00:03:57,114 --> 00:03:59,241 she's making her own goat cheese. 78 00:03:59,282 --> 00:04:03,412 - We were like the majority of consumers out there. 79 00:04:03,453 --> 00:04:06,873 We bought and we worked and we bought and we worked. 80 00:04:06,915 --> 00:04:09,251 And what really got our attention 81 00:04:09,292 --> 00:04:11,920 was the housing market bubble. 82 00:04:11,962 --> 00:04:14,423 Our gated community home that we actually 83 00:04:14,464 --> 00:04:17,676 paid premium so that we could be in a nicer area, 84 00:04:17,718 --> 00:04:22,264 started turning into multi-family renting. 85 00:04:22,305 --> 00:04:25,434 Crime started going up, the neighborhood 86 00:04:25,475 --> 00:04:28,603 started going down, and then the stock market, 87 00:04:28,645 --> 00:04:30,313 right behind it. 88 00:04:30,355 --> 00:04:34,443 My 401k, I was losing about $7,000 a month. 89 00:04:34,484 --> 00:04:36,653 - That's a lot of money. - But it was a lot for me-- 90 00:04:36,695 --> 00:04:38,280 - It's a lot of money to most people. - Because I had worked 91 00:04:38,321 --> 00:04:42,909 a long time, and I was told that... 92 00:04:42,951 --> 00:04:46,288 I could either quit my job or I could die. 93 00:04:46,329 --> 00:04:49,332 Those are the only ways I was gonna get my 401 money out. 94 00:04:49,374 --> 00:04:53,045 So we took a huge leap of faith 95 00:04:53,086 --> 00:04:55,547 and decided to head for the hills. 96 00:04:55,589 --> 00:04:57,674 We stay up here on the mountain so our way 97 00:04:57,716 --> 00:05:00,761 to get the word out is to have a YouTube channel. 98 00:05:00,802 --> 00:05:03,764 As you can see, an off-grid home 99 00:05:03,805 --> 00:05:06,058 doesn't have to look like one. 100 00:05:06,099 --> 00:05:09,311 - I've designed and built every building on this property. 101 00:05:09,352 --> 00:05:12,522 - I created what I call the Hiney Hydrant, 102 00:05:12,564 --> 00:05:14,858 which is a portable bidet. 103 00:05:14,900 --> 00:05:17,736 And it eliminates the need to have to buy toilet paper. 104 00:05:17,778 --> 00:05:21,406 - Even though we live off-grid, we're not just surviving. 105 00:05:21,448 --> 00:05:23,283 - We're thriving. 106 00:05:23,325 --> 00:05:25,660 I was used to going to the shopping mall. 107 00:05:25,702 --> 00:05:27,496 I couldn't do that anymore. 108 00:05:27,537 --> 00:05:29,873 I had to figure out, how can I make my own makeup? 109 00:05:29,915 --> 00:05:32,417 I'm gonna be honest with you, this isn't natural, okay? 110 00:05:32,459 --> 00:05:34,461 The barn needs painting, okay? 111 00:05:34,503 --> 00:05:36,671 I'll tell you, the goats don't care, 112 00:05:36,713 --> 00:05:38,298 but the old goat does. 113 00:05:38,340 --> 00:05:40,383 Okay, so I just want to let you know. 114 00:05:40,425 --> 00:05:42,928 I had to make my own makeup, out of food. 115 00:05:42,969 --> 00:05:45,597 We don't need money, we don't need anything 116 00:05:45,639 --> 00:05:47,516 except for what we have. 117 00:05:47,557 --> 00:05:49,476 And it seems like, wow, you just kind of, 118 00:05:49,518 --> 00:05:51,311 your whole life is food. 119 00:05:51,353 --> 00:05:53,271 Uh-huh. And I'm living pretty good. 120 00:05:55,816 --> 00:05:57,776 - [Kal] Jane and Rick have voluntarily formed 121 00:05:57,818 --> 00:06:00,779 a community of two, servicing their own needs. 122 00:06:00,821 --> 00:06:03,156 No outsiders welcome. 123 00:06:03,198 --> 00:06:05,450 - Let it stretch, there you go. 124 00:06:05,492 --> 00:06:07,410 - [Kal] But what if my idea of giving up money 125 00:06:07,452 --> 00:06:09,996 doesn't also include defending my family 126 00:06:10,038 --> 00:06:12,749 against the flesh-eating masses? 127 00:06:12,791 --> 00:06:14,543 Especially if I can't even make cheese 128 00:06:14,584 --> 00:06:16,044 well enough to survive. 129 00:06:16,086 --> 00:06:18,213 - Let me just tell you, you're gonna die. 130 00:06:18,255 --> 00:06:20,757 (Kal laughs) 131 00:06:20,799 --> 00:06:22,259 - [Kal] What if you're not looking for 132 00:06:22,300 --> 00:06:23,760 an isolated mountain home, but still 133 00:06:23,802 --> 00:06:25,220 want to live without money? 134 00:06:33,061 --> 00:06:35,772 The 2008 financial crisis that sent Rick and Jane 135 00:06:35,814 --> 00:06:37,440 to the hills dealt a crushing blow 136 00:06:37,482 --> 00:06:39,651 to America's housing market. 137 00:06:40,986 --> 00:06:42,779 But the economic effect was global. 138 00:06:42,821 --> 00:06:44,489 (protestors chanting) 139 00:06:44,531 --> 00:06:46,825 Brutal shockwaves extended to Europe, 140 00:06:46,867 --> 00:06:49,077 where entire economies were decimated. 141 00:06:49,119 --> 00:06:51,621 (siren wails) 142 00:06:51,663 --> 00:06:53,665 Eventually, things got really bad in Spain 143 00:06:53,707 --> 00:06:57,294 after massive bank failures sent unemployment soaring, 144 00:06:57,335 --> 00:06:59,504 and people took to the streets in protest. 145 00:07:07,929 --> 00:07:09,681 The financial crisis left many people 146 00:07:09,723 --> 00:07:12,434 in Oviedo without much money to spare. 147 00:07:12,475 --> 00:07:15,520 So Sergio Martin created an experimental, 148 00:07:15,562 --> 00:07:18,023 barter-based market where community members 149 00:07:18,064 --> 00:07:21,276 directly trade goods and services without using money. 150 00:07:21,318 --> 00:07:23,236 - What's up? 151 00:07:23,278 --> 00:07:26,448 It's an economy made by people, 152 00:07:26,489 --> 00:07:27,699 for the people, 153 00:07:27,741 --> 00:07:29,075 and with the people. 154 00:07:30,285 --> 00:07:31,703 We all have needs. 155 00:07:31,745 --> 00:07:33,830 And we all have resources. 156 00:07:33,872 --> 00:07:37,834 So, we have to use barter, imagination, talent, resources 157 00:07:37,876 --> 00:07:40,503 - I like that. - to get by inside this place. 158 00:07:40,545 --> 00:07:42,088 - That's interesting. 159 00:07:42,130 --> 00:07:44,507 So you're offering this idea of going back 160 00:07:44,549 --> 00:07:46,843 to a trust-based community where somebody 161 00:07:46,885 --> 00:07:49,679 has a good or service that they're directly giving to you. 162 00:07:49,721 --> 00:07:52,390 - Yeah. - (upbeat music) 163 00:07:56,061 --> 00:07:57,562 - How does it work? 164 00:07:57,604 --> 00:07:59,689 - How do you get dollars? Or Euros? 165 00:07:59,731 --> 00:08:02,275 - You work for it. 166 00:08:02,317 --> 00:08:03,902 - What can I do? What talents do you have? 167 00:08:03,944 --> 00:08:07,906 What resources can I take advantage? 168 00:08:07,948 --> 00:08:09,950 For example, food is very important. 169 00:08:09,991 --> 00:08:14,079 This weekend, I felt like making bread with my new oven I built. 170 00:08:14,120 --> 00:08:16,665 And today I'm selling bread. 171 00:08:16,706 --> 00:08:19,334 - So I love this idea, obviously, and I'm way into it. 172 00:08:19,376 --> 00:08:20,961 The reason I was wracking my brain was like, 173 00:08:21,002 --> 00:08:23,672 I'm an actor, and I have some teaching experience, 174 00:08:23,713 --> 00:08:26,716 but we're not here long enough for me to teach a class. 175 00:08:26,758 --> 00:08:30,262 I'm wearing these clothes, I have old socks on... 176 00:08:30,303 --> 00:08:31,888 - We don't want you to be naked after getting... 177 00:08:31,930 --> 00:08:33,390 - ...there are holes in my pockets, 178 00:08:33,431 --> 00:08:35,058 nobody's gonna want this jacket. 179 00:08:35,100 --> 00:08:36,851 - Do you have any film from you? 180 00:08:36,893 --> 00:08:38,353 - Any like, DVDs? 181 00:08:38,395 --> 00:08:41,064 - Yes. Would be nice. - I do, actually. 182 00:08:41,106 --> 00:08:44,317 Okay, so we do have one, thank you. 183 00:08:44,359 --> 00:08:46,111 So this is a DVD. 184 00:08:46,152 --> 00:08:48,488 This I hope will make you laugh. 185 00:08:48,530 --> 00:08:50,573 - This is a very nice plan for my evening. 186 00:08:50,615 --> 00:08:51,950 - So thanks a lot. - Okay, good, cool. 187 00:08:51,992 --> 00:08:54,536 - And now, I would give you something. 188 00:08:56,121 --> 00:08:58,748 For example, you could take... 189 00:08:58,790 --> 00:09:00,750 this one, which is very nice. 190 00:09:00,792 --> 00:09:03,086 Smell. This is called Melissa. 191 00:09:03,128 --> 00:09:04,546 - Melissa? - Melissa. 192 00:09:04,587 --> 00:09:06,006 - That does smell like Melissa. 193 00:09:06,047 --> 00:09:07,799 - Yes. Really? - What? No. 194 00:09:07,841 --> 00:09:09,592 - No? - I don't know, there's somebody named Melissa 195 00:09:09,634 --> 00:09:11,511 who's watching and she's a little 196 00:09:11,553 --> 00:09:12,804 weirded out right now, 'cause I was a little creepy. 197 00:09:12,846 --> 00:09:13,805 It does smell good, though. 198 00:09:13,847 --> 00:09:15,223 - Really? - Yeah. 199 00:09:15,265 --> 00:09:18,601 - And also I could give you some bread? 200 00:09:18,643 --> 00:09:20,312 Do you like this one? 201 00:09:20,353 --> 00:09:21,938 Yeah, that's a nice looking loaf of bread. 202 00:09:21,980 --> 00:09:23,982 - Yeah, looks nice. - It's heavy. 203 00:09:24,024 --> 00:09:25,608 This is gonna fill somebody up. 204 00:09:25,650 --> 00:09:26,693 Several people. This is for a family. 205 00:09:26,735 --> 00:09:27,819 Yes. This is real bread. 206 00:09:27,861 --> 00:09:29,237 So, are you happy? 207 00:09:29,279 --> 00:09:30,947 - Yes. - Me, too. 208 00:09:30,989 --> 00:09:33,700 Great, but I could still trade this for something else. 209 00:09:33,742 --> 00:09:34,743 - Yeah, of course. - Okay. 210 00:09:37,829 --> 00:09:41,458 Okay, so if I wanted to barter this for this, 211 00:09:42,709 --> 00:09:44,836 what are these, soap and lotion. 212 00:09:46,296 --> 00:09:49,341 - Hello. 213 00:09:49,382 --> 00:09:52,802 Can I interest you in some Melissa for your soaps? 214 00:09:52,844 --> 00:09:54,012 They would smell amazing. 215 00:09:54,054 --> 00:09:56,348 People would love them. 216 00:09:56,389 --> 00:09:58,391 - You get the fragrance. - Like, smell this, it smells amazing. 217 00:10:00,393 --> 00:10:04,356 - The bread. - The bread? Okay. 218 00:10:04,397 --> 00:10:05,648 This is really well-made. 219 00:10:05,690 --> 00:10:07,609 - Yes, because it's all handmade. 220 00:10:07,650 --> 00:10:09,611 - Awesome. 221 00:10:09,652 --> 00:10:12,822 Okay, alright, I will trade you for this one. 222 00:10:12,864 --> 00:10:15,784 Thank you. Thank you. 223 00:10:15,825 --> 00:10:17,243 You sure you don't want some Melissa? 224 00:10:17,285 --> 00:10:18,328 (Sergio laughs) 225 00:10:20,538 --> 00:10:22,207 - And these girls. 226 00:10:22,248 --> 00:10:23,833 What do you have? Let's see, tell us. 227 00:10:23,875 --> 00:10:26,669 - T-shirts, books. 228 00:10:26,711 --> 00:10:27,879 - Good. 229 00:10:27,921 --> 00:10:29,172 Did you make all these shirts? 230 00:10:29,214 --> 00:10:31,091 - Yes. 231 00:10:31,132 --> 00:10:32,592 - They're nice, they're very nice. 232 00:10:32,634 --> 00:10:34,511 Can I interest you in some Melissa? 233 00:10:38,264 --> 00:10:39,265 - I think no. 234 00:10:41,559 --> 00:10:42,644 A plant? 235 00:10:42,685 --> 00:10:43,728 Okay. We tried. 236 00:10:43,770 --> 00:10:45,438 - Alright. Thank you. 237 00:10:45,480 --> 00:10:48,817 This is where bartering hits a wall. 238 00:10:48,858 --> 00:10:52,695 A wall that can't be paid for with a nice-smelling plant. 239 00:10:52,737 --> 00:10:55,073 Economic systems don't thrive when you can 240 00:10:55,115 --> 00:10:57,826 get stuck with something nobody wants. 241 00:10:57,867 --> 00:11:00,703 So it looks like I'm going home with Melissa tonight. 242 00:11:04,874 --> 00:11:06,876 To build a global economy, it seems like 243 00:11:06,918 --> 00:11:10,130 you need something to exchange that everybody wants. 244 00:11:10,171 --> 00:11:12,006 Across the globe and throughout history 245 00:11:12,048 --> 00:11:14,300 there's been one rare, heavy element 246 00:11:14,342 --> 00:11:17,262 that people have always been drawn to. 247 00:11:17,303 --> 00:11:19,097 Seduced by. 248 00:11:19,139 --> 00:11:23,143 Driven mad by its glittering shine. 249 00:11:23,184 --> 00:11:26,062 Willing to do anything to get their hands on-- 250 00:11:26,104 --> 00:11:27,856 - Gold. (Kal yells) 251 00:11:27,897 --> 00:11:29,899 You're a nervous guy. 252 00:11:29,941 --> 00:11:32,152 - Around this much gold, yes. 253 00:11:32,193 --> 00:11:33,736 - You're standing currently in the only 254 00:11:33,778 --> 00:11:36,281 center in London where you can buy a gold bar, 255 00:11:36,322 --> 00:11:39,033 sell a gold bar, test it, but best of all, 256 00:11:39,075 --> 00:11:42,370 having bought it you can store it on site in a gold vault. 257 00:11:42,412 --> 00:11:44,497 We wouldn't normally take a client down there, 258 00:11:44,539 --> 00:11:46,875 but fancy a little look? - Yes. 259 00:11:46,916 --> 00:11:49,752 - [Ross] (laughs) Come on, let's go. 260 00:11:49,794 --> 00:11:51,504 - [Kal] Three decades of experience 261 00:11:51,546 --> 00:11:54,424 make Ross Norman London's gold guru. 262 00:11:55,758 --> 00:11:57,677 He says the gold in his vault is safe, 263 00:11:57,719 --> 00:11:59,637 but he can't say the same for the cash. 264 00:12:01,014 --> 00:12:02,098 - I'm about to make you very rich. 265 00:12:02,140 --> 00:12:04,350 I hope you can appreciate this. 266 00:12:04,392 --> 00:12:06,728 I'm about to give you $100 trillion. 267 00:12:06,769 --> 00:12:09,189 Congratulations. - [Kal] Thank you so much. 268 00:12:09,230 --> 00:12:10,899 - You're now the owner of $100 trillion, Zimbabwe money. 269 00:12:10,940 --> 00:12:12,525 - Oh, yeah, okay, this is worthless. 270 00:12:12,567 --> 00:12:14,277 - But do you know what? It goes on. 271 00:12:14,319 --> 00:12:16,196 Yugoslavia, I can't even count the notes. 272 00:12:16,237 --> 00:12:19,157 $10 million Deutsche Marks from the Second World War. 273 00:12:19,199 --> 00:12:20,742 Turkish lira, how many notes is that? 274 00:12:20,783 --> 00:12:22,702 It's only half a million Turkey lira. 275 00:12:22,744 --> 00:12:26,915 Cash always goes to its intrinsic value, zero. 276 00:12:26,956 --> 00:12:29,542 They're great as a medium of exchange 277 00:12:29,584 --> 00:12:31,211 but through time, it erodes. 278 00:12:31,252 --> 00:12:33,880 - So how does gold differ? 279 00:12:33,922 --> 00:12:36,549 - It's got a 4,000 year history. 280 00:12:36,591 --> 00:12:39,219 What economists call purchasing power parity. 281 00:12:39,260 --> 00:12:40,929 If you'd bought an ounce of gold 282 00:12:40,970 --> 00:12:42,764 in the time of Jesus Christ, 283 00:12:42,805 --> 00:12:44,516 you'd have bought a suit of clothing. 284 00:12:44,557 --> 00:12:46,392 Bought an ounce of gold in the time of Henry VIII, 285 00:12:46,434 --> 00:12:47,769 you'd have bought a suit of armor. 286 00:12:47,810 --> 00:12:50,980 An ounce of gold today is about $1,300, £1,000. 287 00:12:51,022 --> 00:12:52,607 You can get suited and booted 288 00:12:52,649 --> 00:12:54,817 on Savile Row in London for £1,000. 289 00:12:54,859 --> 00:12:57,320 The point being, there's a world preserve. 290 00:12:57,362 --> 00:13:00,156 It buys the same things throughout history. 291 00:13:00,198 --> 00:13:02,367 Cash doesn't. - What's in there? 292 00:13:02,408 --> 00:13:04,118 You have the key in there, and I'm 293 00:13:04,160 --> 00:13:05,912 so distracted by this key, 'cause I'm like, 294 00:13:05,954 --> 00:13:07,997 what's in the box? - I'm gonna show you something 295 00:13:08,039 --> 00:13:09,666 I'm gonna show you something. Let's have a quick look in here. 296 00:13:09,707 --> 00:13:11,209 What I've got in here is, 297 00:13:11,251 --> 00:13:13,962 clients come here to store their value. 298 00:13:14,003 --> 00:13:15,672 - [Kal] Ooh! 299 00:13:15,713 --> 00:13:17,924 - Hands off. (laughs) 300 00:13:17,966 --> 00:13:20,552 You're in a safe deposit box. 301 00:13:20,593 --> 00:13:23,179 (Kal laughs) 302 00:13:23,221 --> 00:13:25,014 Now, consider in this country, 303 00:13:25,056 --> 00:13:28,268 the average wage is about £28,000. 304 00:13:28,309 --> 00:13:29,978 In cash terms, that's £28,000. 305 00:13:30,019 --> 00:13:32,480 These are £50 notes, okay. 306 00:13:32,522 --> 00:13:35,775 The equivalent in gold, take it here. 307 00:13:35,817 --> 00:13:36,859 Is a kilo of gold. 308 00:13:36,901 --> 00:13:38,945 That's $45,000. 309 00:13:38,987 --> 00:13:40,154 - This is heavy. 310 00:13:40,196 --> 00:13:42,198 - It's twice as dense as lead. 311 00:13:42,240 --> 00:13:43,241 - Is this pure gold? 312 00:13:43,283 --> 00:13:45,827 - [Ross] 99.99% pure. 313 00:13:45,868 --> 00:13:47,161 May I take that back? (laughs) 314 00:13:47,203 --> 00:13:48,871 - If you have to. 315 00:13:48,913 --> 00:13:51,040 - Throughout history, we had to 316 00:13:51,082 --> 00:13:53,835 attach value to an element that was reliable. 317 00:13:53,876 --> 00:13:55,461 On opposite sides of the world 318 00:13:55,503 --> 00:13:57,171 they came to the same conclusion. 319 00:13:57,213 --> 00:13:58,590 Do you remember the name Marco Polo? 320 00:13:58,631 --> 00:14:00,592 - Yeah. - In the 1200s, 321 00:14:00,633 --> 00:14:02,635 he went from Europe, where they used gold as cash, 322 00:14:02,677 --> 00:14:04,721 he discovered in Japan and China 323 00:14:04,762 --> 00:14:07,307 they were also using gold as cash. 324 00:14:07,348 --> 00:14:09,642 South America, a thousand years ago. 325 00:14:09,684 --> 00:14:13,313 So across the world, relatively isolated communities, 326 00:14:13,354 --> 00:14:15,898 all attached to one element, gold. 327 00:14:15,940 --> 00:14:18,693 - [Kal] People and gold have had 328 00:14:18,735 --> 00:14:20,987 a pretty stable long-term relationship. 329 00:14:21,029 --> 00:14:24,198 So why aren't we still using gold as money? 330 00:14:24,240 --> 00:14:26,909 (dramatic music) 331 00:14:30,163 --> 00:14:32,040 - [Narrator] Gold! 332 00:14:32,081 --> 00:14:33,458 Even on this black and white reel it shines, 333 00:14:33,499 --> 00:14:34,792 right off the screen. 334 00:14:35,793 --> 00:14:37,337 None in the modern world has had 335 00:14:37,378 --> 00:14:41,049 a more extraordinary relationship with gold than America, 336 00:14:41,090 --> 00:14:44,093 the sweetheart consumers of the global economy. 337 00:14:44,135 --> 00:14:46,346 For the better part of the 19th century, 338 00:14:46,387 --> 00:14:48,723 America flirted with the gold standard. 339 00:14:48,765 --> 00:14:51,893 We made it official in 1900, legally declaring that 340 00:14:51,934 --> 00:14:55,897 each bill was worth a set amount of gold held in reserve. 341 00:14:55,938 --> 00:14:58,107 Gold-crazed citizens were emancipated 342 00:14:58,149 --> 00:15:02,111 from the burden of lugging around heavy coins and bars. 343 00:15:02,153 --> 00:15:04,030 Put away that wheelbarrow, Jasper. 344 00:15:05,531 --> 00:15:08,076 The US gold standard held down inflation 345 00:15:08,117 --> 00:15:11,788 and made the dollar reliable for trade with foreign nations. 346 00:15:11,829 --> 00:15:14,874 America was sitting pretty, 347 00:15:14,916 --> 00:15:16,709 until the Great Depression pulled 348 00:15:16,751 --> 00:15:19,462 the rug right out from under us. 349 00:15:19,504 --> 00:15:22,090 Economic hardship puts a bellyful of stress 350 00:15:22,131 --> 00:15:24,550 on the gold standard. 351 00:15:24,592 --> 00:15:27,095 The Federal Reserve couldn't source the supply of gold 352 00:15:27,136 --> 00:15:30,348 required to print more bills to stimulate the economy. 353 00:15:30,390 --> 00:15:33,059 That marked the beginning of the end for the gold standard. 354 00:15:33,101 --> 00:15:38,106 In 1971, President Nixon nixed it for good. 355 00:15:41,067 --> 00:15:43,569 (upbeat music) 356 00:15:45,196 --> 00:15:46,948 - I'm in our nation's capital, 357 00:15:46,989 --> 00:15:50,493 where I spent a few years working for President Obama. 358 00:15:50,535 --> 00:15:52,412 You're welcome. 359 00:15:52,453 --> 00:15:54,038 I'm here to meet an old friend 360 00:15:54,080 --> 00:15:55,373 at Martin's Tavern in Georgetown, 361 00:15:55,415 --> 00:15:57,625 which has a long history of hosting 362 00:15:57,667 --> 00:16:01,087 some of DC's biggest power players. 363 00:16:01,129 --> 00:16:03,631 I'm excited that we're sitting down together. 364 00:16:03,673 --> 00:16:05,133 We worked together for a couple of years. 365 00:16:05,174 --> 00:16:06,968 Austan Goolsbee knows a thing or two 366 00:16:07,009 --> 00:16:08,636 about why gold got kicked 367 00:16:08,678 --> 00:16:11,389 to the curb by the global economy. 368 00:16:11,431 --> 00:16:14,350 Austan also worked at the White House. 369 00:16:14,392 --> 00:16:16,185 - We don't have the gold standard now, 370 00:16:16,227 --> 00:16:18,187 and there's not any country on Earth 371 00:16:18,229 --> 00:16:20,064 that has the gold standard anymore, 372 00:16:20,106 --> 00:16:22,150 because it didn't work. 373 00:16:22,191 --> 00:16:26,195 The people that usually advocated gold standard 374 00:16:26,237 --> 00:16:28,448 have in mind, I don't trust the government, 375 00:16:28,489 --> 00:16:31,868 I don't trust any individual in the government 376 00:16:31,909 --> 00:16:34,203 to decide how much money there should be. 377 00:16:34,245 --> 00:16:36,205 They'll probably print too much money 378 00:16:36,247 --> 00:16:37,623 and we'll have hyperinflation. 379 00:16:37,665 --> 00:16:41,461 And only gold, which is in fixed supply, 380 00:16:41,502 --> 00:16:44,464 will give us the stability that we need. 381 00:16:44,505 --> 00:16:46,090 Now the only thing about that is 382 00:16:46,132 --> 00:16:48,092 the gold's not in fixed supply when they find, 383 00:16:48,134 --> 00:16:49,635 you saw those old pictures of the guy 384 00:16:49,677 --> 00:16:52,263 with the coveralls, he's in Alaska. 385 00:16:52,305 --> 00:16:54,640 They discover a bunch of gold, it's like 386 00:16:54,682 --> 00:16:57,018 they've flooded the market with money. 387 00:16:57,059 --> 00:17:00,146 You haven't replaced that there are 388 00:17:00,188 --> 00:17:03,858 decisions being made about how much money to print. 389 00:17:03,900 --> 00:17:06,569 Russian miners and South African gold miners, 390 00:17:06,611 --> 00:17:09,030 they're the ones who determine how much money's in the economy, 391 00:17:09,071 --> 00:17:11,407 rather than somebody in the government. 392 00:17:11,449 --> 00:17:14,452 - The actual paper on which a dollar 393 00:17:14,494 --> 00:17:19,457 or $10 or $100 is printed, if a dollar is a dollar, 394 00:17:19,499 --> 00:17:21,042 does the paper actually cost a dollar? 395 00:17:21,083 --> 00:17:23,461 Does a $100 bill cost more than the dollar? 396 00:17:23,503 --> 00:17:26,255 - What you are identifying, we don't 397 00:17:26,297 --> 00:17:28,299 have a commodity money system anymore. 398 00:17:28,341 --> 00:17:33,221 Instead, we have fiat money. 399 00:17:33,262 --> 00:17:37,433 We print the money, and then we tell you what it's worth. 400 00:17:37,475 --> 00:17:39,101 - Like is it meaningless? 401 00:17:39,143 --> 00:17:41,020 Is money totally bullshit, is it meaningless? 402 00:17:41,062 --> 00:17:43,189 - If you pull out your dollar and you look at it, 403 00:17:43,231 --> 00:17:46,400 it says, this note is legal tender 404 00:17:46,442 --> 00:17:48,402 for all debts, public and private. 405 00:17:48,444 --> 00:17:50,071 It's a promise from the government 406 00:17:50,112 --> 00:17:53,115 that you could use that to pay your taxes. 407 00:17:53,157 --> 00:17:55,159 That's what makes it fiat money. 408 00:17:55,201 --> 00:17:59,288 It just means the government says, this is a dollar. 409 00:17:59,330 --> 00:18:04,043 If they print a $100 bill, on one cent of paper, 410 00:18:04,085 --> 00:18:05,545 and they say this is worth $100, 411 00:18:05,586 --> 00:18:09,048 will you give me $100 worth of coconuts, 412 00:18:09,090 --> 00:18:10,633 you know, for this? And they will! 413 00:18:10,675 --> 00:18:13,094 You'll go outside, somebody will take $100 bill, 414 00:18:13,135 --> 00:18:15,763 just because the government, by fiat, 415 00:18:15,805 --> 00:18:17,306 declared that that's what it's worth. 416 00:18:17,348 --> 00:18:19,058 - So it's a system of trust. 417 00:18:19,100 --> 00:18:21,227 - It's a system of trust, and it has to be. 418 00:18:21,269 --> 00:18:23,312 Because you have to trust if I'm giving you 419 00:18:23,354 --> 00:18:28,317 something other than a barter, this for that, 420 00:18:28,359 --> 00:18:30,152 to say, yes, 421 00:18:30,194 --> 00:18:34,323 this abstract thing represents value, 422 00:18:34,365 --> 00:18:36,951 then we can use it to trade. 423 00:18:36,993 --> 00:18:41,247 And there's always the temptation that whoever's in power, 424 00:18:41,289 --> 00:18:44,000 would say, well, while no one's looking, 425 00:18:44,041 --> 00:18:45,334 let's print a whole bunch of money 426 00:18:45,376 --> 00:18:48,170 and pay off all of our, whatever debt we have. 427 00:18:48,212 --> 00:18:52,341 If you abuse that, the markets and the people 428 00:18:52,383 --> 00:18:55,219 who use the money, they will notice. 429 00:18:55,261 --> 00:18:57,722 And when that happens, they will begin to flee your money. 430 00:18:57,763 --> 00:19:03,352 Stable governments are basically the last 431 00:19:03,394 --> 00:19:05,021 safe house that we have. 432 00:19:08,441 --> 00:19:11,235 - [Kal] So, the government wants me to trust their money, 433 00:19:11,277 --> 00:19:14,572 and their money wants me to trust someone else. 434 00:19:14,614 --> 00:19:16,908 I suppose having a faith in our institutions 435 00:19:16,949 --> 00:19:19,535 is easier than carrying around a heavy metal 436 00:19:19,577 --> 00:19:22,330 or a potted plant, but can I choose 437 00:19:22,371 --> 00:19:25,041 to place my faith someplace else? 438 00:19:25,082 --> 00:19:26,584 Is there an option that doesn't 439 00:19:26,626 --> 00:19:29,795 depend on a government decree or banks? 440 00:19:29,837 --> 00:19:31,964 That would change the world. 441 00:19:32,006 --> 00:19:33,925 And we all know where to go for that. 442 00:19:33,966 --> 00:19:36,135 (modem squeals) 443 00:19:36,177 --> 00:19:38,179 - I took the initiative in creating the internet. 444 00:19:38,220 --> 00:19:40,222 - [Kal] The internet has excited us. 445 00:19:40,264 --> 00:19:41,557 - And then there's email. 446 00:19:41,599 --> 00:19:43,351 - Email, I heard that's really neat. 447 00:19:43,392 --> 00:19:45,978 - [Kal] And changed our lives over and over. 448 00:19:46,020 --> 00:19:47,939 - [Interviewer] You launched Facebook in your dorm room? 449 00:19:47,980 --> 00:19:49,982 - Yeah. 450 00:19:50,024 --> 00:19:52,652 - [Kal] Will the next big internet innovation remake money? 451 00:19:52,693 --> 00:19:54,570 - It is the hottest currency in the world. 452 00:19:54,612 --> 00:19:56,405 - Bitcoin. - Bitcoin. 453 00:19:56,447 --> 00:19:57,990 - [Kal] Some of the biggest influencers 454 00:19:58,032 --> 00:19:59,450 of the last two decades are looking at 455 00:19:59,492 --> 00:20:01,619 a whole new way to get rich online. 456 00:20:01,661 --> 00:20:03,245 - You know, people have made fortunes out of Bitcoin, 457 00:20:03,287 --> 00:20:05,373 some people have lost money out of Bitcoin. 458 00:20:05,414 --> 00:20:07,375 - [Kal] Bitcoin was the first digital currency. 459 00:20:07,416 --> 00:20:10,169 It is also referred to as a cryptocurrency. 460 00:20:10,211 --> 00:20:14,382 Its aim is to free us from blind faith in institutions. 461 00:20:14,423 --> 00:20:16,550 And a legion of devotees have come forward 462 00:20:16,592 --> 00:20:18,552 to declare crypto the future of money. 463 00:20:18,594 --> 00:20:23,099 - This is a financial innovation that is not going anywhere. 464 00:20:23,140 --> 00:20:25,851 (relaxing music) 465 00:20:33,025 --> 00:20:34,694 - [Kal] Jeremy Gardner's early interest 466 00:20:34,735 --> 00:20:36,779 in Bitcoin and other cryptocurrencies 467 00:20:36,821 --> 00:20:41,701 made him into a globetrotting millionaire by age 25. 468 00:20:41,742 --> 00:20:44,412 Now he's focused on spreading the cryptocurrency gospel 469 00:20:44,453 --> 00:20:46,497 as king of the Crypto Castle. 470 00:20:49,500 --> 00:20:51,627 - [Jeremy] Hello, welcome to the Crypto Castle. 471 00:20:51,669 --> 00:20:53,254 - Thank you. 472 00:20:53,295 --> 00:20:55,631 I thought it was going to look like a legit castle. 473 00:20:55,673 --> 00:20:57,133 - It's always a disappointment 474 00:20:57,174 --> 00:20:58,718 for people that aren't prepared. 475 00:21:01,929 --> 00:21:03,514 Well, let's start here. 476 00:21:03,556 --> 00:21:06,600 This is more of like, a man den trading cave, 477 00:21:06,642 --> 00:21:07,601 this is Tony. 478 00:21:07,643 --> 00:21:09,145 - Hey, Tony, how are you? 479 00:21:09,186 --> 00:21:10,438 Kal, nice to meet you. - Frequent house guest. 480 00:21:10,479 --> 00:21:12,898 The house started as a three-bedroom, 481 00:21:12,940 --> 00:21:16,110 but we quickly turned it into a lot more than that. 482 00:21:16,152 --> 00:21:17,528 We turned this into a bedroom right here, 483 00:21:17,570 --> 00:21:19,530 I don't think it's available. 484 00:21:19,572 --> 00:21:21,699 Got another bedroom back here. 485 00:21:21,741 --> 00:21:24,035 My dream was to someday build a gym in here, 486 00:21:24,076 --> 00:21:26,370 but then I remembered I didn't like exercise. 487 00:21:28,748 --> 00:21:33,627 Probably the most unique component is the guest bedroom. 488 00:21:33,669 --> 00:21:35,421 Got two bunk beds. - Oh, that's cool. 489 00:21:35,463 --> 00:21:37,131 - [Jeremy] And so this allows us to host 490 00:21:37,173 --> 00:21:38,758 all sorts of interesting people. 491 00:21:40,509 --> 00:21:42,344 - [Kal] How long have people been living here 492 00:21:42,386 --> 00:21:44,138 as the Crypto Castle? 493 00:21:44,180 --> 00:21:46,724 - When I moved to San Francisco four years ago, 494 00:21:46,766 --> 00:21:51,645 there was no gathering point for the crypto community, 495 00:21:51,687 --> 00:21:53,898 because back then it was very small. 496 00:21:53,939 --> 00:21:55,357 And so I really wanted to find 497 00:21:55,399 --> 00:21:58,986 a space that could really host larger groups. 498 00:21:59,028 --> 00:22:00,571 - [Kal] So the Crypto Castle isn't so much 499 00:22:00,613 --> 00:22:03,407 a castle as a frat house-styled flophouse 500 00:22:03,449 --> 00:22:05,159 for Jeremy's crypto crew. 501 00:22:05,201 --> 00:22:06,494 How many people live here? 502 00:22:06,535 --> 00:22:07,745 - Depends on the day. 503 00:22:07,787 --> 00:22:09,163 - [Kal] Okay, today? 504 00:22:09,205 --> 00:22:10,873 - Today I think we have six or seven. 505 00:22:10,915 --> 00:22:13,542 - So you're, this is an incubator space, basically? 506 00:22:13,584 --> 00:22:16,796 - Yeah, and not like the show "Silicon Valley" per se, 507 00:22:16,837 --> 00:22:20,091 more in that it's an incubation of ideas. 508 00:22:20,132 --> 00:22:22,343 Because of all the interesting people, 509 00:22:22,384 --> 00:22:24,386 there's this kind of rapid ideation 510 00:22:24,428 --> 00:22:28,390 constantly just trying to come up 511 00:22:28,432 --> 00:22:29,725 with new ways to think about things, 512 00:22:29,767 --> 00:22:31,143 and companies have been founded here, 513 00:22:31,185 --> 00:22:32,686 you know, Augur, which I founded 514 00:22:32,728 --> 00:22:34,146 which is first company here, 515 00:22:34,188 --> 00:22:36,148 which is like worth $600 million today. 516 00:22:36,190 --> 00:22:37,608 None of the team's here anymore, 517 00:22:37,650 --> 00:22:40,402 but you know this is where that was founded. 518 00:22:42,196 --> 00:22:44,990 Here, I don't know if she's in her room, 519 00:22:45,032 --> 00:22:47,827 but Jing is the executive dir-- 520 00:22:47,868 --> 00:22:49,411 We're coming in. 521 00:22:50,412 --> 00:22:52,998 - [Jing] What? - This is Jing. 522 00:22:53,040 --> 00:22:54,792 - Nice to meet you. - Nice to meet you. 523 00:22:54,834 --> 00:22:57,419 - [Jeremy] Jing is one of the most badass women in crypto. 524 00:22:57,461 --> 00:22:59,588 - How did you end up living in this house? 525 00:22:59,630 --> 00:23:02,007 I mean, that's like my first question. 526 00:23:02,049 --> 00:23:04,802 - I started doing crypto stuff in 2012. 527 00:23:04,844 --> 00:23:06,470 I was an art student at the time, 528 00:23:06,512 --> 00:23:08,222 attending a women's college, 529 00:23:08,264 --> 00:23:09,974 and then I went to this Bitcoin conference 530 00:23:10,015 --> 00:23:12,768 with 300 men and four women. 531 00:23:12,810 --> 00:23:16,147 And I was like, what is this nerdy world? 532 00:23:16,188 --> 00:23:19,984 And I was hit by this horrible sense of FOMO, 533 00:23:20,025 --> 00:23:22,403 so I switched majors to computer science. 534 00:23:22,444 --> 00:23:23,863 - Oh, wow, from art to computer science? 535 00:23:23,904 --> 00:23:26,824 - Yeah, yeah. FOMO is real. 536 00:23:26,866 --> 00:23:29,201 - This is a house full of dropouts. 537 00:23:29,243 --> 00:23:30,744 - Much to my Asian parents' dismay. 538 00:23:30,786 --> 00:23:32,580 - Yeah, I'm sure. 539 00:23:32,621 --> 00:23:34,582 - What's Bitcoin, Bitcoin is not real money! 540 00:23:34,623 --> 00:23:36,041 - Jing is probably one of the most 541 00:23:36,083 --> 00:23:37,585 well-tapped people when it comes to 542 00:23:37,626 --> 00:23:39,670 the technical community in crypto, 543 00:23:39,712 --> 00:23:41,422 'cause, you know, I deal a lot more 544 00:23:41,463 --> 00:23:43,382 with the entrepreneurs and other investors. 545 00:23:43,424 --> 00:23:45,885 But Jing knows all the brilliant programmers 546 00:23:45,926 --> 00:23:49,054 that actually make this technology possible. 547 00:23:49,096 --> 00:23:50,639 - Jeremy and Jing believe that 548 00:23:50,681 --> 00:23:53,601 cryptocurrency is the future of money. 549 00:23:53,642 --> 00:23:55,561 All they have to do is explain 550 00:23:55,603 --> 00:23:57,438 what the hell it is to the rest of us. 551 00:23:57,479 --> 00:23:59,440 How would you explain what's Bitcoin, 552 00:23:59,481 --> 00:24:01,025 how does any of this work? 553 00:24:01,066 --> 00:24:02,610 - Sure. Do you smoke hookah? 554 00:24:02,651 --> 00:24:06,030 - Uh, no, I'm good, but feel free. 555 00:24:06,071 --> 00:24:08,657 - Bitcoin is a form of electronic money 556 00:24:08,699 --> 00:24:11,285 to move about in a decentralized way. 557 00:24:11,327 --> 00:24:14,788 The system enables you to trust this-- 558 00:24:14,830 --> 00:24:16,874 engage with me, because we've created 559 00:24:16,916 --> 00:24:19,501 a system of trust, that exists online 560 00:24:19,543 --> 00:24:22,546 that doesn't require anyone to go 561 00:24:22,588 --> 00:24:24,673 and mediate transactions. 562 00:24:24,715 --> 00:24:26,717 And that's what makes this technology so revolutionary. 563 00:24:26,759 --> 00:24:28,928 It's totally virtualized. 564 00:24:28,969 --> 00:24:32,056 So no bank, no governments are necessary. 565 00:24:32,097 --> 00:24:34,308 Literally you and me can transact something 566 00:24:34,350 --> 00:24:38,020 that we both hold valuable without relying on anybody else. 567 00:24:38,062 --> 00:24:40,481 - How is that ownership assigned to individuals? 568 00:24:40,522 --> 00:24:42,733 Like how do you know how much of that you have? 569 00:24:42,775 --> 00:24:45,444 - What Bitcoin introduced to the world 570 00:24:45,486 --> 00:24:46,946 was this notion of a blockchain, 571 00:24:46,987 --> 00:24:50,616 which is a distributed database with nodes, 572 00:24:50,658 --> 00:24:53,118 little validators, all around the world. 573 00:24:53,160 --> 00:24:55,955 It makes it impossible to hack, 574 00:24:55,996 --> 00:24:59,083 and Jing may have more to add to this. 575 00:24:59,124 --> 00:25:00,292 - I wanted to add something. 576 00:25:00,334 --> 00:25:01,752 - Please. - Go ahead. 577 00:25:01,794 --> 00:25:04,880 - So, it's called a blockchain, 578 00:25:04,922 --> 00:25:08,759 and you can visualize it like this 579 00:25:08,801 --> 00:25:12,638 ledger of transactions and who owes who what. 580 00:25:12,680 --> 00:25:15,349 All of this data is put in a file, 581 00:25:15,391 --> 00:25:17,601 and that's a confirmed block. - Okay. 582 00:25:22,648 --> 00:25:24,733 - Did I confuse you more? - No, not at all. 583 00:25:24,775 --> 00:25:27,778 I'm just making sure that I understand 584 00:25:27,820 --> 00:25:29,738 everything you're saying. 585 00:25:29,780 --> 00:25:31,740 I'm just gonna text a friend real quick. 586 00:25:42,251 --> 00:25:44,795 - Dearly beloved, we are here today 587 00:25:44,837 --> 00:25:47,756 to explain the blockchain. 588 00:25:47,798 --> 00:25:49,675 Confusing thing, the blockchain. 589 00:25:49,717 --> 00:25:52,886 It's a decentralized ledger for digital transactions 590 00:25:52,928 --> 00:25:55,764 that stays on the internet forever. 591 00:25:55,806 --> 00:25:59,977 And forever is a mighty long time. 592 00:26:00,019 --> 00:26:02,521 But I'm here to tell you it's like something else. 593 00:26:02,563 --> 00:26:04,231 And look, this isn't a perfect analogy, 594 00:26:04,273 --> 00:26:06,775 but think of traditional financial 595 00:26:06,817 --> 00:26:08,777 transactions like a wedding. 596 00:26:08,819 --> 00:26:10,779 Two parties come together and exchange 597 00:26:10,821 --> 00:26:13,699 something of value, like a ring. 598 00:26:13,741 --> 00:26:15,993 Or, formerly, goats. 599 00:26:16,035 --> 00:26:17,619 (goat bleats) 600 00:26:17,661 --> 00:26:19,580 And, traditionally, these holy transactions 601 00:26:19,621 --> 00:26:22,458 have relied on a license from a state 602 00:26:22,499 --> 00:26:24,793 and an ordained official to verify them, 603 00:26:24,835 --> 00:26:27,421 like a priest or a justice of the peace, 604 00:26:27,463 --> 00:26:29,840 or a captain of a ship for some reason. 605 00:26:29,882 --> 00:26:31,759 - I'll turn this ship around! 606 00:26:31,800 --> 00:26:33,469 - You bet you will. 607 00:26:33,510 --> 00:26:35,596 That is what made them centralized. 608 00:26:35,637 --> 00:26:37,931 The official, like me, is comparable 609 00:26:37,973 --> 00:26:39,600 to the bank or credit company 610 00:26:39,641 --> 00:26:42,811 which traditionally verifies the transaction. 611 00:26:42,853 --> 00:26:43,979 - But we're millennials. 612 00:26:44,021 --> 00:26:45,898 - We don't traditionally anything. 613 00:26:47,191 --> 00:26:48,233 - Well, alright then. 614 00:26:49,693 --> 00:26:51,403 (dance music) 615 00:26:51,445 --> 00:26:52,404 If standard financial transactions 616 00:26:52,446 --> 00:26:54,281 are like a traditional wedding, 617 00:26:54,323 --> 00:26:56,575 then blockchain transactions are like 618 00:26:56,617 --> 00:26:59,661 a millennial spiritual union ceremony, 619 00:26:59,703 --> 00:27:01,997 and they don't need an officiant like me. 620 00:27:02,039 --> 00:27:03,791 For some reason, kids today don't 621 00:27:03,832 --> 00:27:05,834 really trust the financial system. 622 00:27:05,876 --> 00:27:08,295 They are satisfied to make this exchange 623 00:27:08,337 --> 00:27:10,631 in front of these trusted witnesses, 624 00:27:10,672 --> 00:27:13,967 who verify the transactions by taking pics, 625 00:27:14,009 --> 00:27:16,970 tagging the bride and groom, and posting them online, 626 00:27:17,012 --> 00:27:18,847 accessible to everyone on the internet. 627 00:27:18,889 --> 00:27:22,726 So if I lose my phone somehow, it doesn't matter. 628 00:27:22,768 --> 00:27:23,977 - Cashew cheese? 629 00:27:24,019 --> 00:27:25,771 - Fuck no. 630 00:27:28,857 --> 00:27:30,901 - I mean, if you look at millennials, 631 00:27:30,943 --> 00:27:32,736 we've lived through a post-9/11 world 632 00:27:32,778 --> 00:27:34,822 that's growingly Orwellian, and then 633 00:27:34,863 --> 00:27:37,074 lived through the Great Recession. 634 00:27:37,116 --> 00:27:39,493 If you're my age, you don't really trust the government. 635 00:27:39,535 --> 00:27:41,036 You don't really trust banks. 636 00:27:41,078 --> 00:27:42,538 What we're creating is something 637 00:27:42,579 --> 00:27:45,541 that transcends the national economy. 638 00:27:45,582 --> 00:27:47,876 We're creating something that is supernational. 639 00:27:47,918 --> 00:27:50,879 Something that is global and accessible to everyone. 640 00:27:50,921 --> 00:27:52,548 I tell young people, you know, 641 00:27:52,589 --> 00:27:55,676 you should have 20 to 30% of your net worth in crypto, 642 00:27:55,717 --> 00:27:59,513 because the upside is so exponential, 643 00:27:59,555 --> 00:28:01,890 whereas the downside, especially for a young person 644 00:28:01,932 --> 00:28:05,853 that can go and make more money, is fairly negligible. 645 00:28:05,894 --> 00:28:07,479 As long as you believe the internet 646 00:28:07,521 --> 00:28:09,273 is gonna exist in the future, 647 00:28:09,314 --> 00:28:11,859 crypto assets are gonna be a part of that. 648 00:28:11,900 --> 00:28:13,235 - Brah. - There you go. 649 00:28:13,277 --> 00:28:15,571 - Shit, my mouth is full. - There we go. 650 00:28:15,612 --> 00:28:17,865 You actually smoke hookah all the time, or-- 651 00:28:17,906 --> 00:28:20,492 - I do. - One of my investors saw Jeremy, and she said to him, 652 00:28:20,534 --> 00:28:21,702 "You look ridiculous." 653 00:28:21,743 --> 00:28:24,496 - (Kal laughs) - I don't remember that. 654 00:28:24,538 --> 00:28:25,914 - [Kal] For the crypto kids, 655 00:28:25,956 --> 00:28:27,749 cryptocurrency is a next gen solution 656 00:28:27,791 --> 00:28:29,918 that will revolutionize the world economy 657 00:28:29,960 --> 00:28:32,129 through a borderless currency that is 658 00:28:32,171 --> 00:28:35,716 free from control by governments or financial institutions. 659 00:28:35,757 --> 00:28:37,301 So future. 660 00:28:37,342 --> 00:28:38,844 I'm in. 661 00:28:38,886 --> 00:28:40,179 Now I've just gotta find me some Bitcoin. 662 00:28:41,805 --> 00:28:44,975 (mysterious music) 663 00:28:46,810 --> 00:28:50,772 Anyone can buy Bitcoin on a cryptocurrency exchange, 664 00:28:50,814 --> 00:28:52,941 but before that happens, the coins have to be 665 00:28:52,983 --> 00:28:55,152 digitally created on the network. 666 00:28:55,194 --> 00:28:57,154 There's no physical treasury to mint them 667 00:28:57,196 --> 00:29:00,949 or Federal Reserve controlling the supply like paper money. 668 00:29:00,991 --> 00:29:03,494 Instead, Bitcoin introduced a way 669 00:29:03,535 --> 00:29:05,621 to digitally generate a finite 670 00:29:05,662 --> 00:29:08,165 number of coins with computing power, 671 00:29:08,207 --> 00:29:10,209 a process called mining. 672 00:29:10,250 --> 00:29:12,794 Now crypto mines have popped up all over the world. 673 00:29:12,836 --> 00:29:15,756 They run powerful computers 24/7 in a race 674 00:29:15,797 --> 00:29:19,092 to generate and hoard cryptocurrencies. 675 00:29:19,134 --> 00:29:21,303 This one belongs to Petr Svoboda. 676 00:29:21,345 --> 00:29:23,847 I'm here to find out how he turned crypto mining 677 00:29:23,889 --> 00:29:24,973 into a business model. 678 00:29:30,270 --> 00:29:31,980 Oh, wow. 679 00:29:32,022 --> 00:29:35,859 The sound is from the fans in each one? 680 00:29:35,901 --> 00:29:36,777 To keep it cool? 681 00:29:36,818 --> 00:29:38,987 - Yes. It's very hot. 682 00:29:39,029 --> 00:29:41,156 - What's the difference between these machines and these? 683 00:29:41,198 --> 00:29:46,954 - These machines are specialized machines for mining bitcoin. 684 00:29:46,995 --> 00:29:48,997 - And other cryptocurrencies. - Okay. 685 00:29:49,039 --> 00:29:51,250 - Different algorithms. 686 00:29:51,291 --> 00:29:53,377 - How many rooms like this do you have? 687 00:29:53,418 --> 00:29:54,962 - There are five rooms. 688 00:29:55,003 --> 00:29:57,130 - Five rooms like this? - Yes, yes. 689 00:29:57,172 --> 00:29:58,799 - That's cool. 690 00:29:58,840 --> 00:30:01,260 Can you explain how mining works? 691 00:30:01,301 --> 00:30:04,972 - It's better for me, will be to explain it in Czech. 692 00:30:05,013 --> 00:30:06,932 - Okay, perfect. My Czech is great. 693 00:30:08,892 --> 00:30:10,102 - Working the algorithms... 694 00:30:10,143 --> 00:30:11,645 Well, it's the uncle rib nose... 695 00:30:11,687 --> 00:30:14,606 Skinny poor check Danno something something... 696 00:30:14,648 --> 00:30:17,859 - uhhh... - Okay, I lied, I don't really speak Czech. 697 00:30:17,901 --> 00:30:19,361 But I'm hoping there's someone 698 00:30:19,403 --> 00:30:21,780 smarter than me who can explain all this 699 00:30:21,822 --> 00:30:24,908 in English and like I'm five. 700 00:30:26,034 --> 00:30:27,578 - Remember how the blockchain is 701 00:30:27,619 --> 00:30:30,497 the digital record of Bitcoin transactions? 702 00:30:30,539 --> 00:30:32,499 Well, mining is how the Bitcoins 703 00:30:32,541 --> 00:30:34,960 are created and awarded in the first place. 704 00:30:36,461 --> 00:30:39,006 The miners in the analogy are the guests, 705 00:30:39,047 --> 00:30:41,592 who verify the transactions by taking pics, 706 00:30:41,633 --> 00:30:44,595 tagging the bride and groom, and posting them online. 707 00:30:44,636 --> 00:30:47,931 Bitcoin is created as an incentive for the miners 708 00:30:47,973 --> 00:30:49,474 to build and maintain the blockchain. 709 00:30:49,516 --> 00:30:52,853 - Okay everybody, time to catch the bouquet! 710 00:30:54,938 --> 00:30:57,482 - Bitcoin is awarded to one lucky miner. 711 00:30:58,984 --> 00:31:00,319 Don't feel bad for the miners who 712 00:31:00,360 --> 00:31:02,654 didn't catch the Bitcoin bouquet. 713 00:31:02,696 --> 00:31:04,865 Bitcoin transactions are happening constantly, 714 00:31:04,906 --> 00:31:08,201 which means mining is a never ending wedding season. 715 00:31:08,243 --> 00:31:10,495 The more they work to maintain the blockchain, 716 00:31:10,537 --> 00:31:13,915 the more Bitcoin bouquets they have a chance to catch. 717 00:31:13,957 --> 00:31:14,958 - Bitch. 718 00:31:18,545 --> 00:31:20,464 - Because crypto mining takes so much energy, 719 00:31:20,505 --> 00:31:23,342 mines like this are being built where energy is cheap, 720 00:31:23,383 --> 00:31:27,137 like China, Iceland, and here in the Czech Republic. 721 00:31:27,179 --> 00:31:29,139 And it's not just Bitcoin they're after. 722 00:31:29,181 --> 00:31:30,682 There are already thousands of 723 00:31:30,724 --> 00:31:33,143 other cryptocurrencies out there. 724 00:31:33,185 --> 00:31:37,356 Litecoin, Ethereum, Tether, EOS, Stellar, PotCoin, 725 00:31:37,397 --> 00:31:39,524 the list goes on and on. 726 00:31:39,566 --> 00:31:41,526 You must have a crazy electricity bill. 727 00:31:41,568 --> 00:31:46,448 - Yes. I think we spend about 60 thousand US Dollars. 728 00:31:46,490 --> 00:31:49,034 - 60,000 US dollars a month. On electricity. - Yes, per month. 729 00:31:49,076 --> 00:31:51,953 - Yes. - Wow. 730 00:31:51,995 --> 00:31:53,455 That's a lot of money. 731 00:31:53,497 --> 00:31:56,083 Can you tell me the average person, 732 00:31:56,124 --> 00:31:58,251 how much they buy and invest? 733 00:31:58,293 --> 00:32:01,922 - Yes, about 30 thousand US Dollars. 734 00:32:01,963 --> 00:32:03,674 - 30,000 US dollars? - [Petr] Yes, yes. 735 00:32:03,715 --> 00:32:05,926 - Each? Okay. - Each. 736 00:32:05,967 --> 00:32:08,261 And how many machines is that usually? 737 00:32:08,303 --> 00:32:09,680 It's for eight machines. 738 00:32:09,721 --> 00:32:12,099 Oh, that's eight machines, is 30,000 US dollars? 739 00:32:12,140 --> 00:32:14,476 Dude, this is amazing. 740 00:32:14,518 --> 00:32:16,978 And you have five rooms of machines. 741 00:32:17,020 --> 00:32:18,355 - Yeah. 742 00:32:18,397 --> 00:32:21,191 - Are there a finite amount of Bitcoins? 743 00:32:21,233 --> 00:32:22,734 - Yes, yes. - There are. 744 00:32:22,776 --> 00:32:25,404 So when they're all found, then what happens? 745 00:32:26,113 --> 00:32:27,531 - Nobody know. 746 00:32:33,036 --> 00:32:34,579 Before I blow all my money on something 747 00:32:34,621 --> 00:32:36,957 that I only understand through wedding metaphors, 748 00:32:36,998 --> 00:32:39,042 I want to meet someone who can explain 749 00:32:39,084 --> 00:32:42,003 how cryptocurrency actually gets its value. 750 00:32:42,045 --> 00:32:44,798 (dogs barking) 751 00:32:47,050 --> 00:32:49,302 (boat horn blows) 752 00:32:49,344 --> 00:32:51,221 Jackson Palmer was a marketing manager 753 00:32:51,263 --> 00:32:54,015 and coding enthusiast whose attempt to poke fun 754 00:32:54,057 --> 00:32:56,643 at the cryptocurrency boom totally backfired. 755 00:32:56,685 --> 00:32:58,729 (dog barks) 756 00:32:58,770 --> 00:33:00,313 - How are you? - Nice to meet you. 757 00:33:00,355 --> 00:33:02,149 - [Kal] These dogs are pretty amazing. 758 00:33:02,190 --> 00:33:04,359 - [Jackson] They are. 759 00:33:04,401 --> 00:33:06,820 - [Kal] These are the dogs on the coin you started, right? Dogecoin? 760 00:33:06,862 --> 00:33:08,864 - That's right, I put the dog on the coin. 761 00:33:08,905 --> 00:33:12,826 - (both laughing) - Yeah, these are the Shiba Inus. 762 00:33:12,868 --> 00:33:16,037 Back in 2013, I was really into cryptocurrency, 763 00:33:16,079 --> 00:33:18,081 noticed there was one coming on the scene 764 00:33:18,123 --> 00:33:20,208 every month or so, and at the same time 765 00:33:20,250 --> 00:33:22,043 I was really into the Doge meme. 766 00:33:22,085 --> 00:33:24,087 - D-O-G-E. 767 00:33:24,129 --> 00:33:25,630 - Your Doge? 768 00:33:25,672 --> 00:33:27,758 What are you talking about? 769 00:33:27,799 --> 00:33:30,218 - The Doge meme was born when a picture 770 00:33:30,260 --> 00:33:32,387 of a dog with a soul-piercing gaze, 771 00:33:32,429 --> 00:33:35,140 posted by a Japanese kindergarten teacher, 772 00:33:35,182 --> 00:33:36,850 rose to internet fame. 773 00:33:36,892 --> 00:33:38,393 Jackson took it from there, 774 00:33:38,435 --> 00:33:40,479 tweeting what he intended as a joke. 775 00:33:40,520 --> 00:33:43,064 Investing in Dogecoin, pretty sure it's the next big thing. 776 00:33:45,233 --> 00:33:46,568 You hadn't created the coin yet. 777 00:33:46,610 --> 00:33:47,819 - Hadn't created it at all. 778 00:33:47,861 --> 00:33:49,237 - What happened with the tweet? 779 00:33:49,279 --> 00:33:51,198 - The tweet started going viral, 780 00:33:51,239 --> 00:33:53,700 and so I ended up buying the domain name, dogecoin.com, 781 00:33:53,742 --> 00:33:56,286 and just slaps the Doge meme on top of a coin 782 00:33:56,328 --> 00:33:58,830 and said, it's a parody cryptocurrency. 783 00:33:58,872 --> 00:34:01,041 - What happens when you create a currency? 784 00:34:01,082 --> 00:34:03,126 - It doesn't actually really involve anything 785 00:34:03,168 --> 00:34:04,836 but putting the code out there for people to run. 786 00:34:04,878 --> 00:34:06,838 It's the same with Bitcoin or Litecoin 787 00:34:06,880 --> 00:34:07,881 or any of these things. 788 00:34:07,923 --> 00:34:09,841 You just put up an application 789 00:34:09,883 --> 00:34:12,219 that people can run and if enough people run it, 790 00:34:12,260 --> 00:34:15,096 then it becomes a network around it. 791 00:34:15,138 --> 00:34:17,140 - [Kal] Yup, it's that easy. 792 00:34:17,182 --> 00:34:19,893 And even though Jackson is the creator of Dogecoin, 793 00:34:19,935 --> 00:34:22,938 he never mined it or made any money on it. 794 00:34:22,979 --> 00:34:25,524 But he did have a front row seat for Doge's rise 795 00:34:25,565 --> 00:34:28,276 as an instant and inexplicable sensation. 796 00:34:30,487 --> 00:34:33,240 - In about 24 hours, we started realizing 797 00:34:33,281 --> 00:34:35,283 that there was all this hashing power, 798 00:34:35,325 --> 00:34:37,744 all this computing power, pointed at the Dogecoin network. 799 00:34:37,786 --> 00:34:40,330 I'm like, oh no, what have we done? (laughs) 800 00:34:40,372 --> 00:34:44,459 It's a thing. Next thing I know, it's a $2 billion economy. 801 00:34:44,501 --> 00:34:46,253 - Whoa. 802 00:34:46,294 --> 00:34:48,755 That's when things got a little Doge-y. 803 00:34:48,797 --> 00:34:51,091 Dogecoin's valuation soared on hype 804 00:34:51,132 --> 00:34:53,718 fueled by a lovable mascot. 805 00:34:53,760 --> 00:34:56,304 And I thought my love of dogs was irrational. 806 00:34:56,346 --> 00:34:57,472 Hello. 807 00:34:59,975 --> 00:35:03,937 And so you started a coin and yet you are a crypto skeptic. 808 00:35:03,979 --> 00:35:06,314 - I'd call myself a crypto rationalist. 809 00:35:06,356 --> 00:35:08,316 - Ooh, okay, crypto rationalist, 810 00:35:08,358 --> 00:35:10,193 that's actually better, I like that. 811 00:35:10,235 --> 00:35:11,695 - I think there's a lot of hype 812 00:35:11,736 --> 00:35:13,488 and a lot of value being attached 813 00:35:13,530 --> 00:35:16,366 to this stuff, with very little substance. 814 00:35:16,408 --> 00:35:18,326 Cryptocurrency should be valued 815 00:35:18,368 --> 00:35:20,745 on its actual merit and not the hype cycle 816 00:35:20,787 --> 00:35:23,582 that says it's gonna be the biggest thing in 10 years time. 817 00:35:23,623 --> 00:35:25,125 - How do humans scale something 818 00:35:25,166 --> 00:35:26,960 like cryptocurrency, and at what point 819 00:35:27,002 --> 00:35:28,211 does it flip from being speculative 820 00:35:28,253 --> 00:35:30,255 to being an actual thing? 821 00:35:30,297 --> 00:35:32,716 That's the technical term, by the way, "an actual thing." 822 00:35:32,757 --> 00:35:35,093 - An actual thing? Okay. (laughs) 823 00:35:35,135 --> 00:35:36,511 I think it's an interesting challenge. 824 00:35:36,553 --> 00:35:38,096 I think, because the price is going 825 00:35:38,138 --> 00:35:39,723 up and down all the time, 826 00:35:39,764 --> 00:35:42,559 it doesn't really incentivize people to spend it, 827 00:35:42,601 --> 00:35:46,313 because the currencies are so volatile. 828 00:35:46,354 --> 00:35:48,315 - Jackson's concerns really point out 829 00:35:48,356 --> 00:35:51,192 that cryptocurrency is still in its infancy. 830 00:35:51,234 --> 00:35:53,403 Nobody knows what it'll grow up to be. 831 00:35:55,363 --> 00:35:57,908 In fact, its volatile price over the last year 832 00:35:57,949 --> 00:36:01,786 follows almost the exact path of the dot-com boom 833 00:36:01,828 --> 00:36:03,204 that turned out to be a bust 834 00:36:03,246 --> 00:36:05,624 when the internet was in its infancy. 835 00:36:05,665 --> 00:36:08,001 Crypto is still a speculative asset, 836 00:36:08,043 --> 00:36:09,961 more like an investment in a start-up 837 00:36:10,003 --> 00:36:11,880 than hard cash in your pocket. 838 00:36:14,424 --> 00:36:16,134 But there are people all over the world 839 00:36:16,176 --> 00:36:17,302 trying to change that. 840 00:36:22,265 --> 00:36:24,935 James Howells saw the potential of cryptocurrency 841 00:36:24,976 --> 00:36:27,604 before almost everyone else. 842 00:36:27,646 --> 00:36:29,773 He was one of the first crypto miners, 843 00:36:29,814 --> 00:36:31,858 making a fortune in Bitcoin. 844 00:36:31,900 --> 00:36:33,944 Now James is in on the race to figure out a way 845 00:36:33,985 --> 00:36:37,447 to make cryptocurrency usable for everyday purchases. 846 00:36:37,489 --> 00:36:39,366 Is this your doing? 847 00:36:39,407 --> 00:36:41,326 - Yeah, I've actually put this into this store, 848 00:36:41,368 --> 00:36:43,828 I'm using this as a test store, 849 00:36:43,870 --> 00:36:45,413 because I'm selling this product 850 00:36:45,455 --> 00:36:47,540 to businesses around the world. 851 00:36:47,582 --> 00:36:49,417 - He's developed an app he hopes 852 00:36:49,459 --> 00:36:51,711 will make crypto as easy to use as cash. 853 00:36:52,837 --> 00:36:55,840 (generic pop music) 854 00:36:56,883 --> 00:36:58,969 - [James] Grab a Lucozade. 855 00:36:59,010 --> 00:37:01,554 - [Kal] I'll grab some crisps. 856 00:37:01,596 --> 00:37:04,015 The app draws from a user's digital wallet, 857 00:37:04,057 --> 00:37:06,768 which tracks how much Bitcoin cash you own. 858 00:37:06,810 --> 00:37:08,687 - Yeah, now what? 859 00:37:08,728 --> 00:37:10,563 I'll just play on Bitcoin Cash please, if that's alright. 860 00:37:10,605 --> 00:37:12,983 This is the Bitcoin Cash Wallet, 861 00:37:13,024 --> 00:37:15,151 so I've got Bitcoin Cash preloaded. 862 00:37:16,236 --> 00:37:17,821 The merchant has got a solution 863 00:37:17,862 --> 00:37:20,991 where they give me a QR code to pay. 864 00:37:21,032 --> 00:37:26,204 I scan that and swipe to send, 865 00:37:26,246 --> 00:37:28,623 and then the merchant knows that 866 00:37:28,665 --> 00:37:30,250 he's actually received his funds 867 00:37:30,291 --> 00:37:32,419 and they are secure in his wallet now. 868 00:37:32,460 --> 00:37:34,921 - I assume Visa and Mastercard don't like Bitcoin, 869 00:37:34,963 --> 00:37:37,048 because that circumvents their fees. 870 00:37:37,090 --> 00:37:39,009 - Yeah, it puts them out of business. 871 00:37:39,050 --> 00:37:42,470 People can transact without those third-party services. 872 00:37:42,512 --> 00:37:44,264 - You shouldn't be paying third-party 873 00:37:44,305 --> 00:37:45,724 just to put your money to somebody's else's hand. 874 00:37:45,765 --> 00:37:47,475 - Yeah, true. 875 00:37:50,103 --> 00:37:52,647 The potential of Bitcoin transactions is exciting. 876 00:37:52,689 --> 00:37:56,234 No bank fees, no loose change, or long receipts. 877 00:37:56,276 --> 00:37:58,319 And your crypto is safe and secure, 878 00:37:58,361 --> 00:38:00,947 because the only way to use it is with a private key, 879 00:38:00,989 --> 00:38:03,700 a string of 64 random letters and numbers 880 00:38:03,742 --> 00:38:06,077 that is impossible to guess. 881 00:38:08,288 --> 00:38:11,291 The only thing that could possibly go wrong, 882 00:38:11,332 --> 00:38:13,626 is if you somehow lose your key. 883 00:38:13,668 --> 00:38:16,671 Like, hypothetically, you stored it on a hard drive 884 00:38:16,713 --> 00:38:18,757 and you accidentally throw it away 885 00:38:18,798 --> 00:38:22,719 and it ends up in the bottom of a landfill. 886 00:38:22,761 --> 00:38:24,679 I mean, then you're just fucked. 887 00:38:24,721 --> 00:38:26,556 But how likely is that? 888 00:38:26,598 --> 00:38:30,310 So how does one accidentally throw away a hard drive? 889 00:38:30,351 --> 00:38:32,312 - I had a rather unfortunate incident 890 00:38:32,353 --> 00:38:36,691 where I spilled a glass of lemonade onto my laptop. 891 00:38:36,733 --> 00:38:40,528 But I actually kept the hard drive from that laptop, 892 00:38:40,570 --> 00:38:43,531 because I knew it had my wallet on there, 893 00:38:43,573 --> 00:38:46,451 my Bitcoin Wallet and my keys, my private keys. 894 00:38:46,493 --> 00:38:49,788 And basically it was just a case of a mistaken identity. 895 00:38:49,829 --> 00:38:53,541 The wrong hard drive was put into the black bag 896 00:38:53,583 --> 00:38:57,212 and since then, the valuation of my drive, 897 00:39:00,215 --> 00:39:02,217 $65 million today. 898 00:39:02,258 --> 00:39:04,511 - [Kal] Holy shit. 899 00:39:04,552 --> 00:39:05,512 - Yeah. 900 00:39:05,553 --> 00:39:06,596 - [Kal] If that happened to me, 901 00:39:06,638 --> 00:39:08,473 I would never throw anything away 902 00:39:08,515 --> 00:39:11,559 ever again, in my life. 903 00:39:11,601 --> 00:39:14,354 But James has a plan to find his fortune. 904 00:39:14,395 --> 00:39:16,564 By cross referencing landfill records 905 00:39:16,606 --> 00:39:18,358 with the day he threw out his drive, 906 00:39:18,399 --> 00:39:21,444 he can narrow his search to an approximate location. 907 00:39:21,486 --> 00:39:23,488 But the town council won't let him dig. 908 00:39:23,530 --> 00:39:25,031 - In the UK, there's never been 909 00:39:25,073 --> 00:39:27,408 a permit to excavate a landfill issued, 910 00:39:27,450 --> 00:39:29,702 so we're in uncharted territory. 911 00:39:29,744 --> 00:39:31,412 There's been a number of searches 912 00:39:31,454 --> 00:39:33,832 of landfill for police inquiries, 913 00:39:33,873 --> 00:39:36,751 for you know, murder investigations and things like that. 914 00:39:36,793 --> 00:39:38,753 - So just murder somebody first, 915 00:39:38,795 --> 00:39:42,423 and then you should be able to get your key back. 916 00:39:42,465 --> 00:39:45,176 - I mean, the fact that I cannot get 917 00:39:45,218 --> 00:39:47,846 $50-odd million worth of coin back, 918 00:39:47,887 --> 00:39:49,722 proves that Bitcoin is secure. 919 00:39:49,764 --> 00:39:52,267 - So if you had written that key down on a piece of paper, 920 00:39:52,308 --> 00:39:53,768 you would've been okay? - Then I would still have it, yeah. 921 00:39:53,810 --> 00:39:57,730 If I had that key, I can spend my coins. 922 00:39:57,772 --> 00:40:00,483 I could set a machine, a supercomputer, 923 00:40:00,525 --> 00:40:05,029 to continually guess every single code for my wallet. 924 00:40:05,071 --> 00:40:07,574 The problem with that is there is more 925 00:40:07,615 --> 00:40:10,743 possible combinations than there are 926 00:40:10,785 --> 00:40:13,371 particles in the universe. 927 00:40:13,413 --> 00:40:17,375 So I would need a couple of suns worth of energy, 928 00:40:17,417 --> 00:40:19,419 actual suns worth of energy, 929 00:40:19,460 --> 00:40:22,672 and a couple of billion years in order to crack it. 930 00:40:22,714 --> 00:40:26,301 That, to me, is what gives Bitcoin its security 931 00:40:26,342 --> 00:40:30,597 and that is why I trust in this technology 932 00:40:30,638 --> 00:40:31,848 as the future of money. 933 00:40:36,269 --> 00:40:37,812 Yeah, so if you wanna jump in, 934 00:40:37,854 --> 00:40:39,772 we can go to the landfill and I can show you 935 00:40:39,814 --> 00:40:42,609 where this multimillion dollar hard drive is buried. 936 00:40:45,904 --> 00:40:47,906 - [Kal] All these people with all their money, 937 00:40:47,947 --> 00:40:50,283 they trust that all of the other people 938 00:40:50,325 --> 00:40:52,911 will also believe in the same money. 939 00:40:52,952 --> 00:40:56,289 It's a chain of trust, unbroken. 940 00:40:56,331 --> 00:40:57,665 So what should you trust? 941 00:40:57,707 --> 00:40:59,125 Your government? 942 00:40:59,167 --> 00:41:00,335 A shiny metal? 943 00:41:00,376 --> 00:41:01,794 A computer code? 944 00:41:01,836 --> 00:41:03,504 Or none of the above? 945 00:41:03,546 --> 00:41:05,673 - Looking at this just gives you a scale. 946 00:41:05,715 --> 00:41:07,508 - [Kal] Oh wow, yeah. 947 00:41:07,550 --> 00:41:10,720 - [James] And that goes down underground as well. 948 00:41:10,762 --> 00:41:12,513 - [Kal] Time will tell how expensive a blunder 949 00:41:12,555 --> 00:41:14,474 James' tossed hard drive really was, 950 00:41:14,515 --> 00:41:16,476 but who can blame him for trusting 951 00:41:16,517 --> 00:41:18,478 in a new way forward and holding out hope 952 00:41:18,519 --> 00:41:20,521 for his future digital fortune? 953 00:41:20,563 --> 00:41:23,650 For now, this is as close as he can get. 954 00:41:23,691 --> 00:41:25,318 - In 10 years time, there's a very good chance 955 00:41:25,360 --> 00:41:27,862 that that drive is worth a billion dollars. 956 00:41:27,904 --> 00:41:31,616 And I can't even walk across there to dig it up. 957 00:41:31,658 --> 00:41:34,494 (hip-hop music) 958 00:42:03,940 --> 00:42:07,610 (crowd chatters) 959 00:42:07,652 --> 00:42:09,696 - [Director] Action. 960 00:42:09,737 --> 00:42:11,739 - I'll turn this ship around! 961 00:42:11,781 --> 00:42:13,574 I'll turn this ship around. 962 00:42:13,616 --> 00:42:15,118 I'll turn this ship around. 963 00:42:17,120 --> 00:42:19,330 I'll turn this ship around! 964 00:42:19,372 --> 00:42:21,416 - [Director] Try it drunk. 965 00:42:21,457 --> 00:42:23,418 - I'll turn this ship around. 966 00:42:23,459 --> 00:42:25,628 - (laughing) - [Director] Cut, perfect.