Bitcoin cash ‘CEO’: We won’t need banks anymore

welcome to Sophie and curl I'm Sophie Shevardnadze the digital currency Bitcoin once a toy for computer nerds is now soaring in price triggering in your gold rush is it just another bubble or the glimpse of the radically new financial future well I asked Rick falconeer of Bitcoin cash and founder of the Swedish Pirate Party the new Bitcoin craze is making people rush into cryptocurrency investment with the digital monies skyrocketing value putting it into the spotlight but aside from causing a new gold rush Bitcoin is promising to completely transform the way we use money what will peer-to-peer money exchange due to the global banking system what role will the world's governments be left with when Bitcoin goes global and can it overcome its unstable nature to bring about a radical financial revolution Rick Fox in yeah welcome to the show it's really great to have you on our program now you predicted bitcoins thousandfold increase back in 2011 and indeed from one dollar in February 2011 in a record high of almost seven thousand eight hundred eighty dollars last week then had a plunge and is back up again now why does it keep growing and is there any price limit for Bitcoin yes there is a price limit for Bitcoin and cryptocurrency it is not it cannot displace more money than exists in the world so there is an upper ceiling but that upper ceiling if you're just regarding Bitcoin as a commodity on the market which I think it is like any currency can easily go to 1 million or more per Bitcoin now it's important to remember that Bitcoin might not be the final cryptocurrency cryptocurrency will displace the central bank money but with social networks we had 6 degrees which was reflected replaced by Friendster which was replaced by MySpace which was replaced by Facebook so some cryptocurrency is going to be worth a lot of money which one well that's a gamble so we're having this Bitcoin split without going into too much detail we have two different versions of Bitcoin as of now you're the man behind the Bitcoin cash this is new version of Bitcoin that was created according to your organization in response to ears of mismanagement of the Bitcoin legacy network is bitcoins decentralized nature its Achilles heel is it going to keep splintering because there will always be someone in the community who will be unhappy about the way functions the a key aspect of Bitcoin is that its permission less you don't need to ask anybody's permission to do anything and this is key in the entire community which is why I decided to publish a letter where I was chief executive officer without asking anybody's permission as a way to illustrate that we're not asking permission that's just part of our community the person the person who's behind Bitcoin cash would primarily be in a French guy named Emily sachet who started working on this but again without asking anybody's permission now you don't have to buy bitcoins you can mind them by using a high-power two processor like the one in a video cart and the gold rush is on here in Moscow we already had a video cart shortage she literally couldn't find any in stores everybody was buying them up to furnish Bitcoin mining farms but can become really make everybody rich no Bitcoin cannot make everybody rich Bitcoin right now is a huge wealth transfer to those who understand who its implications early on the last wealth transfer of this magnitude was around 1850 and it was about those who found oil there's a huge wealth transfer going on right now where those who used to be poor nerdy geeky sitting in their mom's basement if you like are suddenly the new millionaires and that perhaps more than anything is going to have a profound effect on what the future of our society looks like because for the last 200 or so years it was the people who found oil that decided where money went who what research was made and when the geeks and nerds are sitting on that money and deciding what research gets made it's not gonna be a better diesel engine it's gonna be a better solar panel it's going to be teleportation it's gonna be space travel I think that's gonna be one of the more profound changes happening here a wealth transfer to an entirely new type of people so can everyone jump on this bandwagon or is it too late well it comes and goes I mean if I can't give financial advice but if cryptocurrency fulfills it promise and there is no indication it wouldn't then the equivalent of one Bitcoin needs to be in the two to five million dollar range but at that point it doesn't make sense to measure it in u.s. dollars anymore because the US dollar won't have an any measurable value so it is absolutely not too late just like it wasn't too late when Bitcoin was a $3 or $30 or $300 or $3,000 but this is a very high volatile instrument this is a really risky investment and if you're asking me whether somebody should invest then the answer is nobody should ever invest more than being capable of losing every single last cent of it Calma Sachs CEO Lloyd Blankfein says Bitcoin may be another bubble just like that of the dot-com and JP Morgan's changed CEO Jamie Dimon compares cryptocurrency to the Dutch 17th century tulip mania don't this man have a point I mean a bobble forms one there's public ignorance and with Bitcoin most people have a vague idea of what it is and how it works I think that I think you absolutely have a point that most people don't really understand what bitcoin is it is a peer-to-peer electronic money that means I have a phone here I can use that phone to transfer money to a nearby phone or to phone on the other side of the planet the transfers instant it is practically free nobody gets to decide whether I can make that transaction or not including financial authorities and that in itself will mean a financial revolution this is an extinction-level event for banks banks will no longer be a necessary middleman and that's more than anything why I believe that this is the future of finance we anonymity makes Bitcoin obviously very popular but it also enables crime just remember the in tourists wanna cry ransomware attack this may this can potentially make government's restrict frequent rates substantially and that was called the drastic slump in its value do you think cryptocurrency can partially sacrifice its anonymity to ward off shady users it is more traceable than any money that came before it because every every single unit of Bitcoin is traceable through its entire monetary history through anonymous account but once you are not d anonymize one account you can start unraveling where the transactions go the second part of that question which which is more interesting is that governments Bitcoin has a peer-to-peer currency appear to appear technology means that there's no middleman governments have been trying to stop peer-to-peer technologies since Napster and they have been as completely unsuccessful as anybody could possibly be in that so I don't see them being able to stop here to be a currency either which leads me to the last observation that since there is no middlemen there is nobody giving permission when I'm buying a bottle of water with a credit card somewhere in the background is a bank giving me permission to buy a bottle of water with a credit card and that is a horrifying thought because that means that the bank can also deny me permission to buy a bottle of water nobody thinks of this but it's there with Bitcoin this is not true there is nobody needing to give it permission in the background there's nobody who gets to say no to a transaction no money can be forced nobody can be seized and here's the big problem for governments in the future taxes can no longer be force I get all the three points that you've if you've said like before you said it's traceable with wanna cry we know where the rent some money is going but the accounts themselves are anonymous but even we know that there is an account with ransom money extorted from ordinary users in it should we have the ability to freeze an account and take it back no I'll show you I mean this is rather you then here you are working on a new invention a beautiful convenient currency and people use it to pay for child pornography or to order I hate on someone actually they use the US dollar for that and yet I never heard somebody arguing against the existence of the US dollar with that argument if you're going on after drugs and narcotics trade then the US dollar is unparalleled in use and I never heard that being used as an argument against the US dollar well the complete implementation of cryptocurrency make compulsory taxation impossible what happens to real-life government's then like with will Bitcoin make them isn't very interesting oh is that what you're hoping isn't that interesting I I don't I don't I can't predict that the changes we are about to see are so profound when you can no longer just go in and take somebody's money but the the worst you can do as a government is to make them sorry for not giving you giving them your money you cannot force it you cannot seize it the this the changes this is going to bring are so profound to society that we're going to see a lot of governments panicking when they realize they can no longer just seize whatever money they want we'll take a short break right now and when we're back we'll continue discussing what's behind the meteoric rise of Bitcoin with Rick Falkvinge a father founder of the Swedish Pirate Party and cryptocurrency evangelist stay with us and we're back with Rick Fox I'm a founder of the Swedish Pirate Party and cryptocurrency evangelist discussing the future of Bitcoin welcome back Rick now do you think the government's can come up with its own version of blockchain currency make it traceable registered and ensure nobody ever evades taxes or fines or Heights their profit I know banks are trying those Citigroup for instance is definitely doing it right now there are government's trying there are banks trying there was this sort of mantra or cliche last year on year before last that it's not about Bitcoin it's about the underlying innovation of Bitcoin called the blockchain which is a solution to a really really really hard problem as in essentially how do you make sure that a lot of people are agreeing on everybody's account balances because there's obviously an interest in somebody saying that no I have more money and everybody else needs to not agree with that governments and banks don't really think in this way banks think that they can start a blockchain technology and then issue more money down the road governments think that they can start a blockchain currency and issue more money down the road but the whole point of a blockchain technology is that you are trusting in the mathematics and not in the issuer in this way the blockchain a blockchain currency versus a central bank currency is a lot like open source software versus proprietary software like Apple Mac OS or Microsoft Windows it took 30 years but in the end pretty much every single computer web server is running an open operating system in in the same way I predict that will go from proprietary money to open money and permissionless money like Bitcoin you know Bitcoin enthusiasts say the cryptocurrency will eventually replace all regular currencies become the world's only money but ket cryptocurrencies really work for everyone in the world I mean internet connection isn't a permanent thing people in a sri lankan jungle aren't online all the time for instance and half of african people don't even know what a cellphone is to go online a hundred years ago we asked but what a what about the send places there aren't electricity how will you use an electrical engine then and today there is electricity in most places and where there isn't electricity there are batteries there are some specialized cases when you go camping when you go hiking when you go survival training that you don't have electricity or internet the way you take for granted but overall I don't see it as a long-term concern that you won't have access to the Internet because we are just as we speak there's a network of satellites being planned to put the internet on every spot on the globe atop Deutsche Bank strategies says the current monetary system is too unstable and prone to high inflation so it's doomed to fail well cryptocurrency fill in the vacuum if that is so I mean how will it change banking I think you're spot on there the European Central Bank is printing used to print 80 billion euros per month just propping up a gigantic bubble happening right now it doesn't do that anymore it just prints 60 billion euros per month in the US Federal Reserve was printing trillions of dollars inflating the money supply we know how this ends once a government starts printing money to pay off its own debt the story doesn't have a happy ending anymore it just doesn't history is brutal on this point so cryptocurrency doesn't really need to replace the US dollar replace the euro it just needs to survive while those behemoths collapse under their own weight and that when it happens it's gonna go fast so will they widespread use of cryptocurrency while promising a new level of Liberty actually discriminated older generations I mean it won't be easy for older folks to get used to this complicated digital stuff right well it does it manage them it is complicated it is too complicated it is it is not usable enough it is not usable enough at all and I agree that this has always been something of a problem that in the 1920s when households were electrified there was a training curve where older folks were being shut out from all these new electrical appliances because they had to relearn so much when computers arrived it was the same thing when smartphones arrived it was the same thing there's always a problem where a younger generation needs to take responsibility for if you like introducing the elders to the ongoing changes of society fortunately there's a you there's usually somebody in every family who does that but the concern is absolutely valid the first time Bitcoin was used to pay for a real service as it cost a user 10,000 bitcoins to get two pizzas now the guys were yes I mean 35 million dollars per pizza I wonder if that man really wishes had cooked at home cash is backed by a theoretically gold or the government's ability to pay dad where do all this insane values come from in Bitcoin what's backing a Bitcoin like any commodity it has value because of two simple characteristics it is useful and it is scarce meaning that there is not an infinite supply of it it is useful because I can use it to transfer value to Malaysia on a Sunday without anybody interfering with that transmission and it's finite because there is only ever going to be about 21 million bitcoins those two things make it valuable not that it's backed by a government because it isn't you know it's kind of like gold there have been many cases of Bitcoin theft with this leaders latest BTC East case we have a case of stealing tens of millions of dollars worth of bitcoins is it not really safe to keep your investments and I mean considering that they hype about its rising value surely attracts hackers like flies to honey its Bitcoin has that problem I mean it's really hard to store your Bitcoin securely it is a really hard problem that has not been solved some of the best solutions involved specialized hardware they that you keep on your wrist some some other solutions involve opening up a laptop and taking out the wifey circuits making sure it cannot ever connect to the internet as obi infiltrated from the outside this is hard today but it is going to become usable it these are really hard problems and everybody in this community knows that whomever solves it first is going to become really rich as in insanely rich and so there's a lot of money being thrown up that's a good incentive to stick to the Bitcoin business but you know what it's not just a hackers that have a problem there was a famous case of a wire editor forgetting the pink coat from his Bitcoin wallet and using a hackers and even a hypnotist to retrieve it I know it sounds funny but isn't it a little harsh and people I mean how can it's so is it to lose access to something you own that can't happen to my wallet or bank account well it absolutely can happen to your bank account I asked the people on Cyprus when their banks accounts were when they bank savings were confiscated to bail out the government the government's bank asked an EP ask any people in say Argentina or for that matter any person in South America how safe their bank holdings are they're not they're just okay maybe it wasn't a good example but the whole and business is still really tied to whatever Christ is going in the country but you're saying the advantage of Bitcoin is that it is not tied to anything that's going around it in the world right so how come it's so easy right access to it something that your own just getting a ping code just by forgetting a pin code it is it is data it is data you can think of it as a file if you like if that file gets into somebody else's hands then you lose your money if the hard drive would that file on it gets destroyed or corrupted or just dies then you lose your money which is why this problem is so hard which is also why a lot of people are working on it but Bitcoin and cryptocurrencies are just in their infancy this problem is beat going to get solved just like every single technical problem before it that had so much promise but hadn't yet hit usability we were there with streaming video before for ten years before YouTube hit in 2006 we were there was blogging for ten years before WordPress and TypePad hit we were there for about 10 years with file sharing before Napster hit in 1999 these things take about 10 years before somebody hits the right usability key and remember this is a technology that was devised in 2009 it's possible that if were looking at a possible mainstream breakthrough around 2019 ten years from then then that the company founding the company who makes this breakthrough has not even been founded yet Rick for all the talk of being an Internet freedom banner a bit con isn't entirely independent for instance we've mentioned the BTC ease where the u.s. police has recently seized accounts of its clients and arrested one of his founders so pressure can be put on cryptocurrency it can't be absolutely not to heal they can be it can be put it can be you cannot point a gun at a computer to make it give up its secrets but you can point a gun at the pewter zoner and make them very sorry for not giving up that file inside the computer but this difference that might seem very small has profound effects because it means that governments can no longer just walk in and seize money to pay people's taxes people have to actually agree with paying taxes and that in itself is going to be profound when governments realize this right Rick thank you very much for this interesting insight for this interview or talking to Rick Falkvinge a CEO of Bitcoin cash founder of the Swedish Pirate Party and cryptocurrency evangelist discussing Bitcoin and the future of Finance that's it for this edition of Sofia & Co I'll see you next time

46 thoughts on “Bitcoin cash ‘CEO’: We won’t need banks anymore”

  1. When this video was new I disliked it. I was a fool. Here I am in April 2019 smashing the LIKE BUTTON. I had fallen for the BTC propaganda back then. Today I know better. BCH IS THE FUTURE. Bitcoin Cash is the true BITCOIN.

  2. Couldn't they technically trace transactions through communications, if the communications are not anonymous?

  3. What happens if the government decides to confiscate phones like they did gold under FDR? What if Apple for example demands that all phone bills be paid through a credit card?

  4. I want to see you after a electromagnetic pulse collapse the internet including the destruction of the processors!

  5. Really just more because fake money because l deem it so . what it to be real money and backed from my country ( US. Tres depart ) Some thing l know is real. It

  6. Are you wanting to make money online? Have you tried making money but ended up losing money?BITCOIN trading and crypto investment has come to make stuffs very easy for us.Being scammed in crypto investment has became the greatest fear for anyone who wants to invest in crypto currency,many still get linked up with the wrong people and platforms.I tried Mr Hafeez Ullah Strategy and i made alot of profit , you can contact him via [email protected] com

  7. Since we all know that BitCoins was introduced and first used by the black casses of CIA, and used firstly for deals with Drug-Mafia, do you think it is not a buble and it is not a fraud??? All around the globe, people understand whats going on. The problem is, how we gonna re-act. With Rage or with Love, thats the question ?:)

  8. After hearing all this tell me how do you think the ceo died accidentally?and why hasn’t this been front page news? Or searchable ? If the private banks feel threaten what do you think would happen?

  9. Binary options is not a trade of luck . If you do not have a working strategy , you definitely will loose your hard earned money . profitability is the sole priority of any intended trade . Reach me for an efficient and reliable strategy on [email protected] com

  10. mega wealthy made bitcoin to hide there virtual assets while we search for the profits of there crimes. When they go to sell it will Just like all the rest of burbles they make to rob us with … and cheat us out of our land and property. gold and silver with.

  11. 20:00 governments.. that how easy it is. Try not paying your taxes you will see who really owns that 250,000$ home

  12. U can buy wal mart gift cards with bitcoin and re load them.. wal mart has everything so whoever says u can buy real things with bitcoin is talking out of their ass. You can buy ANYTHING in bitcoin. Go ahead challenge me.. try and find a product or service i cant buy with bitcoin

  13. 14:30 try spending a US dollar while camping.. it wont happen there is no forest vendors with hotdogs carts or any need for money. The camping analogy was not needed.. it actually made some people dumber for having listen to it

  14. Very good interview except the lady talks a bit of a crap here and there. African people have better reception than us in the UK, and some of them had phones before they had daily printed news papers. The way developing countries are now is so great because they skip some technological steps and they jump to high tech immediately. Hopefully this will help knock down governments who want to oppress people and everybody can live freely!

  15. Electricity is convert into Digital money….. and will always have roon for you to start mining on line or creating Digital money on your own time and place….. saved the old computers, add a stick with windows 10 or any other Windows and start using your old computer , I have four computers, and I am always making one work, and I let the other one cool off , but I always mining with one of my old computers…… I used my laptops for the other necessities like banking and e mail and so on ……

  16. In Kenya we've just celebrated 10 yrs of running M-PESA our own version of cryptocurrency! I no longer need to carry cash as long as I have a mobile phone I can pay or purchase anything! More than 95% of Kenyans have access to mobile phone and around 90% have fibre optic back bone internet access! That lady needs to do some research!

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