Creatività, passione e innovazione in Finanza, Banche e Diritto
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Welcome everyone and welcome to David Orban,
the guest of our Hangout.
I am Marco Mari, a startupper of Legal Pad,
a startup incubated here in H-Farm,
and David Orban, is CEO of Dotsub,
and Advisor to the Singularity University.
Today's theme is: Creativity, passion and innovation in Finance, Banking and Law.
I briefly introduce this Hangout,
with David's words:
"Recent discoveries in mathematics, and their combination in decentralized transaction tables
that do not require trust,
have opened the way for a wave of unprecedented innovation in the field of digital money,
finance, business and trade on a global scale.
Led by Bitcoin, this innovation is spreading to new levels the creation of a stack of solutions that are not dissimilar to
the way in which the traditional TCP IP stack has supported the boom of Internet applications.
The promise of financial solutions is truly revolutionary for the emancipation
of billions of people living today outside of modern banking and of the financial world.
The clash with the existing operators in the sector is inevitable,
and as such must be managed intelligently,
in order to maintain the speed of innovation,
while recognizing the need of a broader audience to grow their understanding and familiarity,
without the disadvantages suffered by the experimenters."
Well, I leave the word to David.
Thanks Marco, and thanks to all of you to host me, so, with a remote contribution.
In the next half hour, I'll make a hopefully interesting talk about those opportunities that we have seen mentioned,
and I must say, I did not expect to talk about creativity,
passion and innovation in the field of banking and finance.
In my role as CEO of Dotsub, and as an advisor and member of the faculty of Singularity University,
in a bi-continental life between Italy, New York and California
I see a constant interaction with the frontiers of technology.
I have to thank Alex Lightman, my friend, who founded the group "Internet of Money" on Facebook, a few months ago,
for catalyzing an interest which I had for many years.
I've been following Bitcoin since 2010, so shortly after its birth.
But now let's see how the interest around this
digital currency is increasing.
Your responses to the initial survey
before the talk allowed me to set up
my presentation properly I hope
in order to be stimulating,
and to give you information on which to act,
after being digested, after being processed.
In order to incorporate these ideas into applications, platforms
in exchanging information with companies, financial institutions
who already have their presence on the market on the one hand,
and startup teams on the other.
We'll discuss in general which are
today's networks. Networks of networks: the Internet is derived from them.
As the presence of these networks of networks,
in a generalized sense, has led
to important discoveries
that now are implemented in Bitcoin, but in fact go beyond.
I will show you some simple experiments that
I enjoyed carrying out and maybe show
practically the things we see together.
We will go through the final part of principles,
that summarize the guidelines that lead me in these experiments,
to the part of questions and answers for a half an hour later,
and then to conclude our evening, actually night for you together.
I am speaking to you from New York, where now is five o'clock in the afternoon,
and I think that this possibility of an intercontinental link,
so nimble, that while it's broadcasted to everyone online
and simultaneously recorded for later viewing,
is a perfect illustration of what is
the nature of the accelerating technology
and how its impact on society is involving
individuals, businesses, and in general our human
planetary organization.
The steps that we have had from the pyramids, through the Middle Ages,
the feudal society, industrial society,
and what today is the network society,
was not a passage
defined only by a social or political change.
In fact, the turning point of each of these changes
has been based on technology, where several discoveries
which go on the market,
then develop fully and mature in an S curve,
actually form a bundle,
that draws the exponential curve, with which all of us
must become familiar in order to cope with the challenges that we face.
I call the set of a series of phenomena
that are intertwined today and that lead, in my view to a
potential phase change in the worldwide social organization,
the "Network Society".
Where the production
and the distribution of energy instead of being centralized,
through, for example, solar energy but also others,
it is a production and use
of a distributed type.
Where the production of food,
instead of that which is the traditional agribusiness,
covering many hectares with a uniform production,
is based on distributed "Plant-Labs" where each skyscraper in New York
could produce the food consumed inside of it,
through containerized systems,
of LED lamps that do not need pesticides
to grow plants consumable by all.
3D printing promises a distributed industrial production
rather than a centralized one,
and we all participate, in fact even today's event
it's an example of this, the phenomenon of the MOOC,
"Massive Online Open Courseware"
the possibility all have to learn
based on their passion, selecting content
to build new professional skills,
that make the participation of the individual
in the enterprise and society, of value.
The movement "Quantified Self" pointing
on the measurement of individual health status,
instead of centralized management of the disease
that is the paradigm of the past
of what is, unfortunately, not at that time not even health,
but precisely a capitalization and enhancement of the disease,
here is the movement "Quantified Self"
distributes through sensors associated with our mobile phones
that which is the ability to understand, if we are living
a healthy life or how we can adjust to get to that.
And the new digital coins,
the "Crypto-Currency", the "Crypto Currencies" are
precisely within this movement.
And the reason for which I described it in this form,
namely, that it is not an isolated phenomenon, but is
within an epochal phase change
in the organization of society, it is precisely because it does not matter
the name of the currency, no matter
what is the country that admits it or block it,
is a wave of the future that is coming up quickly,
that is impossible to stop.
And the mathematical foundation of what
today we know exactly how Bitcoin is a foundation
solid very similar to that
that in the seventies,
eighties, nineties onwards has arrived arrived today
to be known as just the stack
internet that from the physical medium
to the transport network
to the protocols of content management,
reaches up to the application layer
where culture, ideas
as articulated here by Joi Ito,
then in 2009 when he published this slide
Executive Director of the Foundation that manages Creative Commons,
comes to Facebook
where the Social Network
in reality is an application level,
of what the Internet can express.
And so it was surprising how
unexpected, even for those who built it,
these days there was the tenth anniversary of Facebook
Mark Zuckerberg described it as
it's the cure,
the dedication, the passion that has put us in this work that led facebook to having
the success it has had, it is not that he
could predict what would have happened ten years later,
here as
not even the protagonists of the internet revolution could
predict what would have been possible,
it is absolutely reasonable to understand that just as much,
those who devote themselves with passion and creativity to explore
the consequences of new digital currencies,
try to catch a glimpse of the future, but in reality
don't know what will happen.
However, they are hard at work to build a stack
similar to what is the foundation, what is the transportation,
on what are the possible applications
respect to finance and currency
which becomes, similar to previous applications of the Internet,
a network application:
reliable, distributed,
where trust is earned, is not forced
contrarily
to national currencies today, which
by the simple imposition of
the obligation to pay taxes in those currencies
acquire a necessary existence
and essential, contrary to the implicit violence
behind the fact that if you do not pay
the taxes not only are you a dishonest citizen
but potentially you'll go to jail,
digital currencies are moving forward
through a mechanism
that does not require the confidence,
two people perfectly unknown to each other can
transact with each other and do not need
that there is a third external authority
to mediate between them.
And this ability is mathematically provable
if I pay someone
this person can not say that I have not paid
and I can point to a table distributed,
in fact, available online to all, to show that
instead the payment is done.
The table that you see is the price of Bitcoin that expresses that better then all others
the growth of this trust
it is not a matter of a scheme,
of a pyramid scam,
Metcalfe's Law is just the dissemination of utility
a network where, in proportion to the quadratic
with respect to the nodes participating in the network
the value of the network grows and the collapses of
Bitcoin, where we see even now, the exchange rate
decreased from nine hundred to seven hundred U.S. dollars
Bitcoin, there it's not a representation
of a lack of confidence, but is
representation of an adjustment on the curve
that we saw earlier, the exponential
of increase in utility
specific to this particular network.
Where the authority is distributed,
it's not centralized,
where the nature of the "Block Chain"
these rings that intertwine
cryptographic evidence
where the reward of those who make
the "Mining", paid in Bitcoin,
in reality it is a side effect,
nothing to do with the value of the network,
and it is not that when the rewards
paid to Bitcoin Miners,
will start to decrease,
the entire network will collapse,
the trust that is founded
on the distributed authority,
of the BitCoin network
of heart beats in heart beats, measured every ten minutes the network is strengthening,
through, in fact, today's million tomorrow the billions of people who participate through their financial transactions.
It 's very important
evaluate, and it is possible in the case of Bitcoin to do it at a level of granularity,
that was not necessarily possible before,
whether a given country or a given community,
is able to marry a future that is inevitably coming.
And this ability, or inability
is dynamic and therefore
can change from day to day as well as now we see through
the various statements of the banking authorities of various countries
who declare themselves
more or less hostile to Bitcoin.
They are right actually, because as well as
communication networks have internet
fundamentally transformed what is the value chain of
telecommunications companies previously existing
and so Bitcoin and the crypto currencies,
whatever the name,
will intervene in a way inevitable and fundamental
to do the same, relatively to the
current leading company in the field of banking and finance,
therefore, the caution the attention is fully justified,
the prohibition priori,
and the instumental
criminalization instead represent a fear
dangerous, just because,
is like trying to stop the rain,
as well as trying to stop the ocean waves
it's, however, led to a failure of this type of visceral antagonism.
Bitcoin from a mathematical point of view
can be particularly complex, but it is easy to make an analogy with
the game of Sudoku that
can be difficult to solve, but once
that is solved, just take a look to say,
this puzzle's been solved "
and it's easy to verify if the solution is right or wrong.
And this kind of asymmetry inherited in the algorithms of Bitcoin
which is precisely at the mathematical basis of his distributed encryption
that allows you to make transactions
which are then incorporated
within what is called "Block Chian."
If we modulate what is called
precisely "Proof of Work"
within the mathematical algorithm "Proof of Stake"
and this is a next future application no longer
to money,
no more to payments of the same concept
below Bitcoin now
we come to change
those that are the same fundamental
relationships
of the current legal type,
under our companies, joint-stock companies
who were born four hundred,
five hundred years ago and that
may be re-thought, re-implemented
in such a way as not local
and distributed worldwide,
that challenge what are the laws
of individual countries,
that they will not know exactly
how to deal with this kind of change.
The experiments that I was able to do just starting
by abstract reasoning maybe, but then
comparing them with the reality were many,
and each of these at your disposal
I enjoyed, for example, to meet with
a person perfectly unknown to
buy Bitcoins from him
precisely with the confidence that was not
necessary it was centrally set
but I could check
its reliability directly through the transition network
if ever he was the one who needed
also to check twice that the dollars or
the euro that I gave him were eventually not false,
the possibility of going to buy me a coffee
in a restaurant in Milan,
that just that night was preparing to launch the acceptance of Bitcoin
as you see the day after they are sticking to the windows
adhesives for this ad
and even having to manually copy the particularly complex
address on which to make the payment
because the QR code
for the automatic decoding was not yet ready
with of course the whole discussion
which results from it, "have you notified your accountant?"
"Absolutely not" but
taxes, no taxes, everything
that's important to know,
does not require
new legislation does not require new
regulation, only
because the technology of Bitcoin is new and has new effects and new phenomena
this does not mean
that the old laws do not apply as well as
for the defamation on the internet
and the management of the Blog, you do not need new laws,
that there is danger would lead to harnessing innovation
on the internet, so
relatively to Bitcoin there's no need of new rules
that could stifle innovation relatively
to this important new development,
because the old laws still apply,
if you have revenues in Bitcoin you have to pay taxes,
if you've invested in Bitcoin, and you
earned, the capital gain is taxed
so how would a normal share gain.
If you sell something and apply VAT
on your sales
VAT will apply even if you sell in Bitcoin, either way.
Extremely important new markets,
are springing up
naturally with their difficulties,
liquidity difficulties, organizational difficulties,
here you see me literally around
the corner from the New York Stock Exchange,
where they organize meetings
where I could buy half at eight hundred,
and sell to eight hundred ten
thus gaining ten on the transaction,
pity that
doing a clearing in immediate cash trading activities,
having only a few dollars in my pocket
my gain was ten cents,
just multiply it by a million and becomes
ten million gain and that is what is happening today
with the grain,
what's up with the orange juice,
and what the friend who helped me to do the whole thing,
does during the day to prepare by night
to the world that is coming, practicing
with others to implement
and refine what is
the stock market exchanges based on Bitcoin.
There are more than four billion dollars
every year of
money transfers that take place between
high-income countries,
and lower-middle income countries,
if we include as a destination
even the high-income countries
this value reaches six hundred billion dollars a year,
carried out by the company, which
so inexplicable to me,
apply commissions
on these transfers very high
commissions that come in ten, fifteen, twenty percent
and over
the value transferred for an eletronic operation
which can be instantaneous and take three days to perform.
I did this little experiment,
to meet with a
taxi driver in New York,
give me ten U.S. dollars
and ten cents, to do an instant transfer
in Dakar, to his sister
of the equivalent of ten dollars
and dividing instantly,
between me and the other person that you see in Dakar
five cents per head as
just a symbolic element of a commission,
of one percent, to make the whole operation
sustainable ofcourse we could do it
even with no commission, basing everything
on a totally different business model
for example, the dissemination of knowledge
and services related to
financial emancipation of the people
that currently, more than two and a half billion
in the world do not have access
to bank accounts, credit cards
or other elements of modern finance and
Bitcoin, no centralized authority
can say "must not have a bank account,"
because there is no trust
in their ability of spending,
in their ability to attract debt, and
to repay debt, because
this centralized authority is no longer required.
If you do not trust the sister
Kadi of Ajdusa, no problem
Bitcoin network can innovate new services
to solve problems.
It's particularly interesting in my opinion
to see that this financial innovation that we see
takes place in 2008 after the liberation of the minds
previously subjugated
to the slavery within the existing systems,
until, in 2008, with their
with their mass dismissal,
they could see the light,
the compulsion to earn a loaf
no longer develop mathematical models
increasingly abstruse, that the banks themselves did not understand
when they were packaged and sold
to unsuspecting investors has allowed
computer scientists, mathematicians,
with the formation of economic and financial
to radically innovate to achieve
new solutions in
a particular way,
revolutionizing the fundamental concepts of the same
macroeconomics, which previously saw
concepts such as deflation
in a particularly dangerous way,
rethinking it
because maybe they'll lead to
a micro-economic paradigm
of individual behavior, and a macro-economic paradigm
of planetary interconnection
of a sustainable future,
because we're starting
to account, the unsustainability
is unsustainable, we
have no future if we do not build a society
compatible with a planet where externalities
no longer exist,
where to put their heads like ostriches, down
under the earth, can no longer be made,
and the populistic slogans
who preach a return
to the management of the things that
local politicians,
strangely seen as more reliable than those
European as in this case, as we see
from the example on the photo
it's just as impossible a return
as was the Autarchia
of the Fascist period in Italy.
Our connection to the rest of the world is
definitive, and the
decentralization of authority, of digital
coins, will lead to solutions
that do not require you to give up
the capacity to make decisions about your own future,
neither at the individual level nor at the
city, province, region,
nation or super national level, but will delegate
to a mathematical algorithm that which
is the transaction management that was previously
exposed to
politicians and their special interests.
The principles governing this type of
radical change, are made possible
by the previous revolutions,
since when ten thousand years ago we began to explore
the adventure of the technological society,
to date we have
understood, more with better mental tools
that by the Greek philosophers,
to Kant, to today you are honing themselves
to make each of us more capable of dealing
with challenges, and we are at a point today
where the cost of
failure is so low,
that each of us realizes
to be orders of magnitude lower than
the cost to not try and not grope.
We try and fail, try and fail,
until we find solutions necessary
and essential to learn how to live with a future
that is coming regardless of our individual will.
The answers that we have, of course, do not exhaust
the space of possibilities, are nothing but constructions
brick, with which,
we open our eyes to new questions,
and that the two diverging
exponential, are filled only
by our ignorance, but supporting
competitiveness,
through innovation, press to
an irrepressible invention.
Thank you, and I'm ready for
your questions.
Thank you David.
Thanks for the clarity, and the competence of your explanation,
if,
a few questions arrived in the questionnaire
which circulated before via e-mail
to all participants, but if
someone wants to take immediate action,
after the intervention of David?
No one?
Why, some of the questions that David
which had been asked,
practically, almost to all have been given a response.
In many ...
many have .. have questioned,
on the volatility of this instrument,
and the possible influence
of political influences,
but, I think you answered this,
also from the point of view of the legality of this tool,
especially in our country,
precisely with the practical
application laws have been given an answer.
You have a question?
Yes
If you want to watch.
Hello, I am Nicola, I wanted to ask, what kind of negative influence
do you think that could have governments on the regulation of Bitcoin,
what they could do that would prevent the development of what you see as positive instead?
Thank you for your question, currently already happening in some countries,
Bitcoin has been declared illegal,
one of these, it is Thailand, the other is Russia
where it is forbidden not only
Bitcoin operate as a company,
but it is also prohibited to possess.
It 's interesting course this attempt,
to declare illegal the numbers,
because, Bitcoin is nothing but a sequence of numbers,
a bit like they were burned books
of forbidden knowledge in the Middle Ages, but this has not
stopped the spread,
the knowledge that these books only incorporated,
thus prohibiting the possession of those
numbers by the citizens of those nations,
where this policy decision has been taken,
will not stop the spread of knowledge
that only those numbers represent.
And some how,
you can not put the genie back
in the bottle, you can not de-invent
the revolution of Bitcoin,
these nations decide to try to stop it,
do no more than oppose
a future that is coming, and
arrive at a breaking point, where
tensions, compared
the future that other nations live,
and these, it is not so large as to be more sustainable,
and then come back on their feet, legalizing
again the coin
digital, Bitcoin or whatever it is.
A very concrete example
This, as we have seen during the Arab Revolutions,
particularly in Egypt, where understanding
that these revolutions were
mediated, were transported from the links
Internet, the Egyptian authorities have decided to
close the Internet in Egypt,
and then isolate in terms of
global communications nationwide
only to realize that they were merely,
cut his own leg economic
too many transactions, the stock exchange,
transactions, communications policies themselves,
military operations, any operation was,
they could not live without the internet, they turned back on,
Revolution is the way forward, and with Bitcoin will be the same thing.
Thank you.
There is another question.
Hello David, my name is Maurice, and
I wanted to ask you a question as a spectator outside,
the world of Bitcoin.
What is success in 2013
not bode well for the
Bitcoin, because
a rise so sudden
of its value,
does not generate some confidence
in the sense that a person
that of Bitcoin in your pocket,
after a year can trovarsene
thousand more, but also a thousand
Nevertheless, there seems to be
too much uncertainty, and
the difficulty of access to this money,
makes her an asset to collectors,
rather than by users.
So I think that
the Bitcoin needs
become easier
understanding, easier to use,
and in need of a word
clear,
by world authorities, which also
if they can not, in theory,
stop the development,
may create some fear,
and therefore some uncertainty in the future.
I do not know, however,
when this Bitcoin
become of Use
daily, if
the value of
This Bitcoin, may rise
from one thousand to
hundred thousand, or
from one thousand to ten
because
if it is used every day,
an argument that you can do is,
loses its speculative value, so there will be no
most of these,
these assessments
fluctuating as it may be,
The opposite approach is:
can use it, all over the world,
then the goods are
request being
of a finite number, its value increases exponentially.
Here I do not know, what will be the scenario
future, probably
I do not even know you,
because you do not have the crystal ball
to guess, but we would keep in
know what you think, here, of this
problematic?
Thanks considerations, and to have concluded with
a question, because I was worried they can only say
OK,
Seriously, I
I believe that
no matter what we call it,
and I do not care if it belongs to
"Block Chain" current
ie the series of transactions that
are interconnected value
fundamental financial Digital today
or, if it is called with another
name, and therefore belongs to a chain,
to a "Block Chain" of a different type,
what I think is safe,
is that in twenty years,
finance today
finance will then be so
equally unrecognizable
with respect to finance today
unrecognizable as what we are doing now,
respect to the phones,
Rotary that were used in Italy twenty years ago
and that required,
for example, I remember why I was there,
to book an international line,
maybe not twenty years ago, thirty years ago we,
to call as was my case, Hungary
and I note in Hungary,
I could not call freely,
let alone a video link intecontinentale,
recorded live,
everything that Google Hangout Air is what we are doing,
what does this mean in relation to the value of
Bitcoin, that
fluctuations that we see everyday now
should be ignored, those who risk,
to buy and sell based on those
absolutely can lose your shirt,
but in terms of performance
long, the value, in my opinion
that both of Bitcoin or another currency equivalent,
is likely to rise, not one, not two,
not two not three, rose
is expected to grow to five or six,
not five or six times
orders of magnitude, because in
because weave, the entire
world economy.
It should be easier
to use? Certainly,
write an e-mail message was,
just for geeks, when the internet was born,
Now we are at the birth of the digital currency,
then anyone who uses it can be considered,
a neat freak.
It must be clear position,
the authorities? Sure but
this is not the responsibility of the geeks,
clarify this position is responsible
authorities that are slow
and relatively incapable of making
decisions, it is definitely a problem, and also a big problem, which is
even more than what is the value
finance digital, then
I very much agree with you, and if you're not one
specialist, absolutely deserves a commendation,
because you're interesting in this world
and is the most important thing that anyone can do,
so that Italy is not in the rear
as it is still in the internet and StartUp,
but also through initiatives such as Hack-Bank,
The H-Farm Venture, can be
in cutting-edge applications of digital finance
new one.
Thank you, there is another question?
Yes, hello, my name is Max, I wanted to ask, if the value of Bitcoin as prospects grow,
at the same time the national currencies will fall in value,
Euro Dollar, or those remain,
continue to have a right path?
The biggest challenge for nation-states, is
address the global reorganization of the company,
precisely through the concept of,
"Network Society", in Italy for example,
the prohibition of a realization
substantial solar systems
that are not connected to the national grid
and the obligation of the sale of the energy produced to the grid
is the national demonstration,
a clear understanding of this challenge and how this is crucial,
when life on earth has evolved, producing
complex animals, and
say has produced a complex
conceptually impossible, unattainable,
Starting from bacteria,
that while more than a billion years
were the more complex organism
possible on the planet, well
this change has meant that the bacteria
were gone,
are equally important and dominant under
certain points of view as they were before, but
There's no debating that the bacterium in culture,
or finance around us, so
I predict that there will still be the national currencies,
as long as there are countries that say,
I prefer to base all
My currency transactions on a much more
reliable, incorruptible,
stable, compared to my
simply for the fact that it is mandatory to pay
their taxes in national currencies will ensure
survival, if not chè
Bitcoin is already higher
in terms of reliability compared to many
national currencies, and those currencies
could easily be replaced,
Already today by Bitcoin, and for
populations, for individuals in those nations would,
would be better, would be more reliable,
would be more stable, it would be
absolutely preferable, if not done
is the corruption of the political class,
and his inability to decisions so
radicals, then the future will be
certainly very important, not
many people know for example that the Bank
American Federal is injecting
Seventy billion dollars a month, within the economy
national in the attempt,
to produce growth and
produce spending power,
This is a decrease compared to
eighty billion per month, some time ago,
when injected nearly a trillion,
I do not know how to translate into Italian, dollars
and no one knows that this type of
will have consequences on the dollar as the national currency,
I'm sure, definitely
future scenarios very very interesting.
You're welcome.
Oh, hello, I have a simple question
Concerning the Circulation of Bitcoin,
because I read about that,
the twenty-eight percent of Bitcoin, currently
are in the hands of fifty people or fifty people,
and the twenty-one percent
is in the hands of eight hundred eighty,
then fifty percent of Bitcoin,
created in the platform are in the hands of
nine hundred and fifty people,
This means that the concentration
of the coin is we say
even greater than the
fair division of monetary wealth that is currently
in the system as we know it,
seen that the system of Bitcoin
asinteticamente tends to twenty-one million coins,
as you think it could happen the spread of
currency, in the moment in which,
there is this division of the fair
of the subdivision, in the moment of
generation of Bitcoin?
I do not know if I was clear?
It 'clear demand, economic inequality in the world
has increased greatly in the last thirty forty years
and, this traditionally
represented through what is
called "Gini coefficient",
potential breakage points led to conflicts,
revolutions, wars and certainly
Today we want to avoid this
to happen, attributed to Bitcoin
this responsibility
it would be a pretty thing,
hypocritical
and I do not think that
this can happen,
as for what regards the possible
wealth that these people now,
holders of large amounts
of Bitcoin would earn,
Well, two things
One , either Bitcoin is a
fashion, if
not even a scam, and then there is nothing to
worry about, otherwise
if Bitcoin is revolutionizing planetary
finance, leading to something
equivalent to that of the invention
of banknotes, or other
revolutions
in the financial tecnology, I say that they have
earned through their foresight
and through the risks that they have supported
and have endured
the wealth that they will eventually have
and that sooner or later they'll put back out in market,
through investment, through
the StartUp that will create, through the space
travels that will be made possible, in order
then for someone on mars
certainly in this century, to say
"Ok, the first action for the declaration of
planetary sovereignty of the former Earth colony
is the opening of the new "Block Chain"
which no longer depends upon the transactions
on Earth, because today we feel emancipated enough to
be able to live alone. "
And this will be something that I think is very
indeed likely to be funded,
through new mechanisms,
rather than through billions of dollars,
or billions of euro that we are deciding to spend instead
on wars, through destruction
then instead of building
I call to action Bitcoin billionaires,
for demonstrating
just as they did in the past two or three years
to be thinking of building a future together,
because I have more confidence in them, that in
others that have just funded wars and destruction.
Mark, if you agree I would read a question that
is our Q & A board, it arrived from London.
It is true, I live in London, and
many people here are going to launch services to make
operation much simpler,
Bitcoin is regarded as a new currency, and they try to accumulate
increasingly more coins. What would you invest in
and what is best to do?
Well, in terms of investment
Bitcoin is extremely risky
therefore, portfolio diversification
yes, but with
great care, today certainly
within a portfolio of
investment, Bitcoin must represent, I do not know that
ten percent that we can not afford to lose.
At the same time, if the value growth
forecasts
are
true in the long term, regardless of changes
also remarkable of thirty percent
from day to day, from month to month,
then maybe it is possible to make
an accumulation plan, where
in fact there are moments of moderate purchase
that are not followed,
by sale, so it is not speculation, it is of
progressive accumulation.
I am very pleased that the London market
believe that innovation can
through and around this,
in this digital world of finance
and I hope and I bet,
that even in Italy there are many new born
realities that have the ambition and courage,
not to be the x, y, z, "Italian solution"
for Bitcoin
but that through innovation and ambition,
possibly helped by investors
who believe in the talented Italians,
go to spread
worldwide.
Ok. There was another question.
Two others? Do we have time?
Two quick questions.
Ok.
Hello I'm Thomas, I would like to
point out one thing, that I think there is a contradiction,
I think we are dealing with
as, that we are calling
money something that is not money, and indeed
in fact we are
realizing that it is not money as
we refer to it, as if it were
goods, in the sense that, for example before
you did, you referred to the Bitcoin
speaking of taxation, so if you buy or sell Bitcoin
there will be taxes on capital gains,
as if it were an action, you said
and as I see it here there is a contradiction
anyway after that you were asked a question about the
increase in the value of Bitcoin,
and you said that the Bitcoin, actually will increase
in value, which
means that, and after that in response to another question,
You said, you said that Bitcoin could
also fully replace national currencies,
but if the Bitcoin increase in value
it means that there is a national currency
that attributes them this value,
otherwise we speak of increased value in terms of goods
but this means deflation, and then the whole exposition
you've done, the possibility
of investment opportunities and
that these people who hold Bitcoin, should it fall,
if not, we know that deflation brings disastrous economic
imbalances, and not opportunities.
The thing that we're doing,
is a phone call,
the thing that we are doing, it is not a phone call,
the thing that we are doing
is television,
the thing we are doing is not television,
the thing we are doing is
school,
what we are doing, it is not school,
to apply old paradigms and
terminology to something new
has its limitations,
calling Bitcoin an investment
is limited,
calling Bitcoin a commodity, is limited,
calling Bitcoin a currency is limited, its
new nature, may require
the development of new terms with which we will familiarize,
and this new vocabulary that has taught us
concepts and words such as
Browsers, such as video-conference, such as E-mail,
like Social Network,
will aggregate and accumulate
an instinctive reaction,
an understanding that if we called today
Bitcoin bru bru
we would not facilitate it,
if enough people adopt this stupid word I just invented,
around it,
for articles, disclosure, documentary
and everyday experience, there would be
relationships and emotional reactions needed to speak.
Inevitably, at the time
there is a feeling of
confusion and bewilderment, it is rightly so
and it is inevitable that it is.
Last question.
Good evening,
Meanwhile, I state that I am in favor of Bitcoin,
or rather, as a developer, it attracts me very much,
but I would like to point out,
that some information which you said
are not entirely accurate, or rather are not complete,
For example, you have not attributed the fact that some nations
have not blocked the Bitcoin,
to the fact that governments,
are corrupted, or decisions
governments
a bit abstract
could you define better the choices that led to the rejection
of the adoption of Bitcoin by governments?
Mine are of course interpretations, and their
imperfection is
without a doubt, guaranteed
not being
aware of the reasoning
within the Thai government, or within the Russian government
least of all, which surprised me maybe a little more,
the Icelandic government, in
the decisions they made, surely mine are
only hypothesis.
What we can do, is to find ourselves in a year
make a "Long Bet"
a long bet,
and typically the "Long Bets" are Ten years, twenty years, or even longer,
but let's find ourselves in a year,
I believe that the number of countries that have,
prohibited Bitcoin,
can be increased,
but that the value of Bitcoin, will also be increased,
that the number of applications that will use
Bitcoin will be increased
lots, and that
the fluctuations that we see today
in the volatility of the exchange rate
of Bitcoin, compared to the national currencies,
will have dropped in the meantime,
and as for the reasons of those who
reject the change, the reasons are,
that can be from a psychological point of view also understand,
Change is difficult for many people,
and, until we died quickly enough to not
having to endure it was easier, now that
our average life is increased, and the rate of change
we see around us,
is accelerated,to live through waves
and waves of change,
as basically lazy biological beings,
Stress becomes very
high, and our
our adaptation,
in keeping juvenile characteristics as
curiosity, as the
facing the risk relatively
irresponsible and others,
a feature called
Neoteny, is just an
adaptation to this social and biological condition
of completely new types, then
we are happy we are happy to be childrens in search of
Novelty and hopeful
that the novelty, will lead to a nice
future, but with the resources,
the wisdom, and the ability and preparation
of adult because this beautiful future is actively,
built, not just passively waited for.
Meanwhile, thank you,
of course, do not hesitate to send me more
questions, just as we opened
with a survey, and thank you for
attending so numerosly, there is also a survey of
closure, which I beg you,
if possible to fill as many,
and, if
you just feel like it we'll be here in a year
to talk about it again.
Well,
There is a guy would want to do another quick question, can he?
I tried to explain that ..
It's pretty quick.
One reason why governments have failed
the adoption of Bitcoin, is the fact that these are completely anonymous,
and they are used
by Hackers and by any type of criminal,
for example, for the trade
of weapons, this is one of the reasons,
for which it was stuck in Russia, or the drug trade or
illegal pornographic,
videos,
I also wanted to point out that the graph you showed before
about Bitcoin, if I'm not mistaken is
was towards the first months
of 2013.
I would like to note that the graph of these days,
as well as to have stabilized
and suffered a considerable drop,
is in fact less than half the maximum value,
which had reached at the beginning of December,
that was one thousand two hundred something dollars.
Then,
I'm glad that you've done both observations,
in regards of the anonymity of Bitcoin
it's a false, naive
and dangerous trap for criminals.
Bitcoin is not anonymous, Bitcoin is a pseudonym,
addresses that are used for transfers
in Bitcoin, freezes
your guilt,
always visible to the "Block Chain"
a demonstration of this, there have been arrests
of people who are accused of,
for example, the international drug trade.
These people will be
subjected to judicial treatment
hopefully impartial,
regardless of whether they are declared
guilty or innocent
the ability of the police
authorities to track them down,
shows that Bitcoin, is no longer
relatively dangerous
to national currencies which are now used in billions
units for
the sale of illegal weapons,
for the financing of international terrorism,
to drug trafficking, and child pornography,
so accusing Bitcoin
at the birth of this,
is again an act of hypocrisy
of gigantic proportions,
relatively to the second point you made
I deliberately put that chart,
just to give the persons that
naively look
to exponential graphs
without understanding their nature to being able to make me the question,
just how you made it.
The value of Bitcoin
of twelve hundred dollars, or the value of Bitcoin eight hundred
or seven hundred U.S. dollars that is in fact an approximation
is of an order of magnitude higher
compared to what we see as a maximum, in the graph,
which was still growing exponentially,
and that graphic contains crashes
collapses, which led, for example,
a past time Bitcoin
from being thirteen U.S. dollars, to collapse
to two dollars, so collapse from thirteen to two,
collapse of one hundred to sixty,
collapse from a thousand to six hundred,
see the symmetry of the thing
but on an envelope in growth, which
doesn't cares about these collapses temporary
so the past snapshot,
was not an oversight, but it was just to make it clear that the
fractal self-similarity
exponentially within the trend of bands
of particular volatility,
is indicative of a fundamental strength
that shakes off
the crisis,
demonstrating the stability of the fundamental
Network
Well, thank you very much David,
Good evening to you, and good luck to us all.
Thank you.