Eight days ago, his new book was published, which we call the “Internet of Money” A book worth reading Together we welcome Andreas Antonopoulos! Good evening, everybody! Let’s do a small survey How many of you have used digital currency such as Bitcoin at least once? How many people own Bitcoin or other digital currencies? Well, we can handle this.
If you want, come to me another day. I would love to tell you How to set up a Bitcoin wallet on your mobile phone.
And i will give you some bitcoins Not the whole bitcoin. I will show you how a transaction works Because Bitcoin and the digital currency revolution that has already begun are The best display, experience and description. It is indeed difficult to explain Bitcoin.
I spent five years Research how to explain white Bitcoin. This is my job, full-time. The uncomfortable thing is that the developers are always updating, and I have to keep following the butt. . Well, forget everything you think you know about Bitcoin at this moment.
Forget everything you’ve heard about blockchain, we will start from the beginning.
I first heard of Bitcoin in 2011 My reaction is the same as the reaction of people who heard about Bitcoin for the first time Including its founder, the reaction was: “Oh, nerd’s money” Maybe it is for gambling. 6 months later, I heard about Bitcoin again This time I read the white paper they released on this system Based on my background in computer science and distributed networks Made me discover what’s behind Bitcoin It shocked me and subverted me. In my life, I have six such opportunities to be completely obsessed with In the technological system, I forgot to eat and sleep.
And as much as possible to obtain in the ocean of knowledge wholeheartedly.
I had my computer when I was 10 years old, The first programming experience, First modem The first time to log in to the web, the first time to use the browser Download and install the linux operating system for the first time Then there is Bitcoin. When I discovered it, I spent four months obsessed with it. Sleepless and forgetting food has caused me to lose 26 pounds I didn’t get out of this matter I continue to dig deeper to understand it The reason for more excitement is Bitcoin is not what it sees on the surface.
Bitcoin is not currency. Blockchain is not a currency system.
It is a platform of trust. Not a company, not a product, not a registered service. Not currency. Currency is only its first application. It is a distributed concept Committed to providing people with value communication So what is money?
(Incomprehensible) is a fantasy, it is virtual. The puzzling reason is that it is deeply embedded in our civilization. Currency is one of the oldest technologies of mankind Write earlier than words. How do we know it? Our initial sample of records is a spreadsheet.
What is recorded is the debt sub-ledger and the pre-deposited amount. You can even speculate that money is just a verbal legend Until it needs a record method, then the record is created. Those are the history of money, but now it spans tens of thousands of years. Probably undergone five great changes. From pure barter to abstract value introduced first Shells, feathers, beads, nuts, stones, then precious metals.
Then there are paper money, plastic money, and now online money. Bitcoin introduces a platform where you can use currency as an application It runs on the network and does not require any control center. A completely distributed system is like the Internet itself. It is not the currency of the Internet, but the Internet of currency. So what exactly is currency?
Currency is a language. Currency is an abstraction of language. It is the language of value transfer between us and others. Currency only allows us to express value. Currency value may have economic impact, but also other impacts We use currency to express and build Bonds and social relations between people Social groups and organizations.
Bitcoin is the first currency system that is not controlled by any entity. It is completely decentralized. The communication method it brings is the same thing as the Internet If currency is speech and language, then you are separated from all other media, You turn it into pure language, pure content, One Internet content style, one protocol design The currency is based on IP, Completely divorced from the original will of the country, Sovereign issuer, controlling agency.
We move from an institution-based currency to a network-based currency. So everyone should embrace it with open arms.
It’s not just an opportunity. When some people get a gold certificate of deposit for the first time instead of gold coins, What do you think they said? They said: “It’s not money! Leave far away! ” In 1950, in a motel, When someone took its restaurant membership card to pay for the first time, he said: “I use this to pay!
” “It’s not money, go away!” And now we are in a currency revolution.
We are about to establish the first monetary system, it is completely global, Completely borderless, Completely decentralized, and completely open, First of all you can create an application because it is programmable, To publish an application, no one needs to approve it. This is much less than the need for approval. The only condition for successful application on the Internet of Money Are two like-minded participants.
That is, there are market segments and an application.
Millions of apps fight for odd and colorful. When you promote change in the Internet age, What happens when you throw away approvals and approvals? The change broke out exponentially. These applications cannot be built on the old currency system Because they need approval, they need huge market share, They need a lot of adoption to operate effectively.
At present, the conditions are not met. Anyone can download the app and send messages from a smartphone Get the same rights that the banking industry has in an instant. When I talk about anyone, it is a superficial phenomenon. The irony is that Bitcoin and blockchain currencies are not limited by geographic boundaries.
Nor is it limited to one person.
It doesn’t care if you are alone Or a refrigerator, or a self-driving car. Think about the history of currency ownership It is related to your personal reputation or to the personal reputation of the group. Bitcoin is generated by a machine, you can own Bitcoin through a machine Obtained through software agents and traded with each other through machines. This is not just economic activity. It is a market-based security system.
It establishes the basis for verification relationships between machines. It is the basis for new applications that have never been done before. Bitcoin and blockchain technology unify the currency system. Today, we have a micropayment currency system, Large payment currency system, There is a payment system between individuals, There are also payment systems between companies, There is also a payment system between governments.
Did this make you notice anything?
It is the way of communication before the Internet. We communicate through photos, letters, Regardless of the long or short distance, this is our communication system. The birth of the Internet integrates all communication methods. What is the currency network, it establishes a single network Can conduct small transactions to hundreds of millions of large transactions Anyone anywhere in the world completes transactions instantly without any permission. But if you just think of it as a trading application, that’s not the point You can use this language system and platform to build blocks To build other value exchange language systems.
Tokens, points, brand fan coins. There are thousands of digital currencies that use the Bitcoin design model today Most of them are air coins. Some are not. We will see thousands of tokens in the next ten years. Some have economic uses, and some only express loyalty and membership.
They represent the material of the natural world. Ownership of the house, Car key The exchange of ownership from one master to another takes only 5 seconds The owner can get in and drive away, because the car has already belonged to him This is the new ownership standard.
We can’t imagine what kind of application we are going to create for this. The interesting thing is that we start to explore This currency is derived from the spontaneous social structure of mankind. It even happens to primates.
You can teach monkeys. Teach dolphins about money. You can teach horses and parrots to spend money. They know how to exchange money for food, and then use money to build social relationships. They will also create violent hijacking, Beat the other monkeys, took their babies, and ate their bananas.
This often happens to children. The little ones have issued currency in the kindergarten, Blocks, rubber bands, monster cards and other gadgets, Abstract value exchange strengthens social connections, expresses loyalty and mutual relationships, Know how to share. Children will establish a currency system. This time these currency systems will become global, unforgeable, and scalable In a few years, Maria will issue Maria currency in kindergarten to compete with Joey currency It’s nothing else about anyone else’s business. Of course, when Justin Bieber issued Justin Bieber coins, It happens that the market value of more than 30 countries, then we will write appalling editorials, It’s about how the world enters hell.
How this technology is so surprising. For some companies in this room, I was really scared. Banking has never been the most innovative industry in the world Because for the banking industry, there needs to be a very careful trade-off between innovation and conservative fiduciary duties This exists in the banking industry, especially when you are in control of other people’s money, it must exist. With Bitcoin, you don’t control other people’s money. For Bitcoin, I control my money.
I have complete control over my Bitcoin, it will not be seized, frozen, It will not be regulated, my transaction will not be intercepted, and they cannot stop it.
The transaction is almost completely anonymous, Download the app in 5 minutes, anyone can do it afterwards Money is always changing, and so is the banking industry. You can continue to develop this idea in the currency industry, business field Maintain the same conservative ideas Merchants of Venice and Amsterdam Conservative ideas that have lasted for hundreds of years Start issuing depositor certificates and providing banking services. Those are all gone. Disappeared.
You can’t operate closed systems with boundaries And you need to get permission to join, and the speed of innovation is controlled by conservative trends within the organization Because now you are competing with exponentially increasing technology Index innovation is boundless and boundless without anyone’s permission. It’s not worth anyone in this room why? We represent the privileged elite. I can open a brokerage account on the website Trade in Japanese Yen on the Tokyo Stock Market within 12 hours. That is my privilege.
1.5 billion people have these billion privileges. 600 million people mainly operate in one currency And maybe there are some basic banking services. The accounts of 400 million people are obviously insufficient The surprise is that 2.5 billion people have no bank accounts at all.
They will skip the bank.
They never have anything to do with the bank. Now every new baby born There is no bank account. They will have a banking app. The bank’s app is not to give them a bank account, but to let them have their own bank, An international banker on the app.
They are not allowed to open an account under the age of 16. By then, I hope they can at least have 6 years or more digital currency experience. I would love to see them walk into a branch bank Someone went to explain to them what three to five working days meant. It is extremely possible that children born now will never have a driver’s license because they will have a self-driving car Of course they never use paper money. Because when they reach the age when they really want to use money, banknotes no longer exist.
It’s like fax machines, horses and carriages, they are not in keeping with this era. Global exponential innovation has given 6 billion people an opportunity. They have strong needs.
And this system provides a solution. It’s not ready yet.
For most people, it is new, complicated, and impossible. In 1989, I sent my first email, for which I had to compile a version of the unix mail program Use c language and unix command line skills. I have to set it up on the command line, enter my email and send it. Go through the great internet in three amazing days. 20 years later, my mother used her card to do this.
Bitcoin today All currencies built on this system are no different from the Internet level in 1991 It’s just that there is more internet. Exponential growth has already begun. Innovation is growing at an alarming rate.
I spend time every day and go all out to follow Bitcoin. It’s not easy just for this one currency.
Don’t underestimate these. Don’t listen to people saying that Bitcoin is for pornography Terrorists, drug dealers, and gambling services. They say the same about the Internet. When you give it to 200 or 300 million people, they are not interested in those things. They are interested in sharing cat videos.
There are more than 100 million cat videos on the Internet. When you mainstreamed digital currency, you brought it to the 4 billion people who were isolated Through internet finance and internet commerce, you give them the opportunity to control their currency Oppose corrupt governments and corrupt banks You give them the opportunity to control their future You give them the opportunity to trade with everyone in the world. Ownership of your own property in a fully tradable digital currency, and is recognized everywhere They cannot be confiscated, frozen and censored by financial regulation. They can buy things, health insurance, sanitation, education, housing. That is what they want.
They will not reject this technology. Don’t underestimate their development.
Money Internet was released on January 3, 2009. You can imagine it rushing to your face quickly. It is deeper than you can understand, and more complicated than you can understand.
It will take several years of research to see the deeper implications. This is a gift from the whole world. This technology represents the sixth largest innovation. Currency technology, the oldest technology in our civilization. Thank you Any questions, everyone?
We have enough time to understand these problems. What determines the purchasing power of currency? How is the currency stable, and what is needed to stabilize it? So if I have to buy some bitcoins, Who can manipulate its value? Well, everyone, anyone.
Bitcoin’s purchasing power is actually comparable to the euro The purchasing power of the British Pound, Japanese Yen or U.S. dollar is the same, all through The continuous market supply and the demand for liquidity in the international market are determined. The only essential difference is that Bitcoin transactions never stop. It has been running around the clock for 7 years.
Bitcoin transactions are confirmed every ten minutes The exchange runs constantly, never closes, and Bitcoin has no closing price. The market value of trading in the international market is probably At $12 billion, this is an average valuation.
What does US$12 billion mean for a global currency? A little guppy swims with a group of sharks. Every predator that enters the arena I don’t care much about its price.
So now about the actual experience on Bitcoin, I have spent more than three years researching it full-time, I feel like a roller coaster. Definitely a roller coaster. There is a 20-30% fluctuation in one day But if you look at the long-term trend, Transaction volume rises, transactions increase, and volatility slows. The beauty of it is that I can’t designate to sell it to Americans or to British. You don’t have to sell it to Argentines or Brazilians.
Sold to Venezuelans I was attending a conference in Argentina and they told me We don’t care about volatility, our currency fluctuates just like it. As volatile as Bitcoin is, I would rather hold it. You don’t need to tell them why. Their government threw dissidents off the plane 35 years ago. They already know why separating money from the state is a good idea.
So volatility is relative. Any question? Give him a microphone. Thank you, great speech, obviously about digital currency, I also read about the hacking incident, but I don’t know, bitfinex, I think they stole 40% of the tokens. I think this autonomous community has also been hacked Regarding all these events, can you suggest some of these dark sides Or those aspects that cannot win our full trust in its evolution.
of course can. The steering wheel was invented 30 years after the world’s first car appeared. why? Because the steering wheel of the first car consisted of 2 belts You can only pull left and right to drive the car.
They drove the car with horse reins.
This is called imitation design. It means that the shadow of the old model is left in the new system, but the new dimension is not seen Just copy the past. Here the currency is decentralized, and your money is yours. Your password, your money. Without the password, the money is gone.
So what is the first thing we need to do for this? We set up a central regulatory agency, and they take other people’s money and take charge.
Okay, guess what? The entire banking history, The entire supervision and monitoring system is built on a simple basis It’s known for centuries that when someone else is in control of your money, They are likely to run away with money. Although the entire supervision and monitoring system is designed to prevent such incidents from happening, it still happens frequently.
It often happens in hedge funds, banking, and national currencies. So, if you copy the monitoring account, The exchange gets everyone’s bitcoins and gathers them Things will happen again, or even worse, most of these places are not supervised and monitored. The answer is simple. Stop the centralized decentralized currency system and no longer copy the past banking industry In the future currency system.
The most important thing is to realize that Bitcoin is safe It is an emerging asset with certain natural attributes Because of the existence of decentralized supervision and rights, if I want to hack millions of users’ bitcoins, But they hold the key, and I have to hack into hundreds of customers.
If all of them give the password to one person or an organization, Then we have the baby. This baby attracts the attention of every hacker in the world. Notice what happened. With a market value of US$12 billion in more than 7 years, Bitcoin is the world’s largest encryption deployment mechanism, The world’s largest public key infrastructure, the largest security honeypot. It is not safe because it cannot be attacked.
It is safe because it has been attacked and developed immunity, Even the most powerful attack from around the world 24 hours a day.
If you deploy centralized managed transactions based on PHP and MySQL in this environment And put a honey jar worth 150 million dollars here, You are inviting sharks. Bitcoin banks were hacked, Bitcoin exchanges were hacked, Bitcoin will never be hacked or attacked, because there is no regulatory center You can put a stress test on it, it is completely decentralized. Okay, do you have any questions? Where does the supply of Bitcoin come from?
Are you sure that the market will not be oversupply? The supply of Bitcoin is determined by an algorithm Based on a geometrically decreasing supply function, 50 bitcoins are born every 10 minutes, Then for each block, 50 new bitcoins are created every 10 minutes.
Bitcoin as a reward for a security model based on game theory It can ensure that every transaction is independently verified by a completely anonymous trader It must rely on electricity as a guarantee for the safe work they do If they have successfully done security work and verified that the transaction is valid, They will be rewarded based on a probability return.
The reward is 50 rewards every 10 minutes. This is how money is entered into the economy.
Bitcoin production is halved every four years, In September 2012, the number was reduced from 50 to 25. Today in July, in the past July, we held 2 events Celebrating birthday parties around the world Bitcoin rewards dropped from 25 to 12.5. As a system, it was designed as a deflationary monetary policy. And imitate the issuance of precious metals.
It is getting harder and harder to mine, and the cost is getting higher and higher. Bitcoin is the same. As time goes by, this idea is less and less released. If you follow this geometric curve, at some point, you will reach the end in 2141. Bitcoin will cease to be issued.
21 million bitcoins are gradually being issued, but it will never reach 21 million bitcoins. This is part of the agreement and cannot be changed. This is a rule that must be enforced to participate in the Bitcoin network. Means to be a sound currency It’s not just the only monetary policy that exists. There are also several currencies with different monetary policies.
The idea of Bitcoin is to be used as a stable reserve currency for many other purposes.
What do you want to give to the company here? For companies from non-financial institutions, what strategies and measures should you provide Thinking about trying to reflect the value of deposits by using blockchain? I want to understand that it is not just currency, it is a platform of trust. I want to understand that it can be used as a trust history record and can also register information.
You can use it to create a variety of tokens, you can Between your customers, between suppliers and between your manufacturers, It can also be simply used as a currency for cross-border transactions.
Import/export business, liquid remittance business, payment partners and companies. These businesses are expensive, slow, and laborious nowadays When you use digital currency, it becomes simple, fast and easy. But it is still too early to continue research. Here is one of the most important things you must understand.
You will hear a lot of information about the blockchain Most of the blockchains you have heard of are not a currency network, it is an internal network of currency. Intranet is your company’s internal network, you can run FrontPage and Outlook on it And some old software and outdated content and boring applications. The next step is full of viruses, because you can’t guarantee that it will always be safe.
Blockchain is closed, not public, it is not without boundaries Its changes are not public. This is not what we can discuss here.
That is a very important difference. You want to do clearing between three banks is very useful, maybe. But it is not a currency network. Thank you. thank you very much.