hi everybody this is Charles Hoskinson broadcasting live from warm sunny Kona filled Colorado it is March 9th and I just returned yesterday from London after our wonderful PwC workshop and we've all been greeted by the prospects of a global depression coming or the potential thereof and so I figured I'd make a movie that kind of excuse me a video to kind of dissect a little bit of what this means for our industry as a whole you know it's easy when there's blood in the streets and panic to panic yourselves and say well oh God does this mean everything's coming to an end but really what we are looking at right now is the unraveling of the economic order of the 20th century you know the reality is that we built a global economy through a series of treaties agreements Wars winners and losers that had certain assumptions about how power should work how money should work how credit should work how financial work how information needs to flow and this economy was sustainable and stable when information was not instantaneous and when it was totally acceptable to have empires meaning one or two nation states being supreme above all others in establishing all the rules and regulations furthermore this economy had no ability to deal with rapid social change and no ability to deal with rapid technological change and what's happened is every single time we've seen rapid social change and rapid technological change the banking system of the 20th century said oh well we'll just solve the problem with cheap credit we'll print lots of money we'll go ahead and just keep this unlimited credit culture and we'll live in a world of increasing debt for example right at the turn of the 20th to the 21st century the national debt of the United States with about four and a half trillion dollars with a surplus at the beginning of 2020 the national debt was well beyond 20 Tralee dollars with no end in sight a five-fold increase in less than twenty years which is a truly remarkable thing and that was just on the US side and everybody was always living for something to come to save us Japan for example the Olympics it'll come and save us and then what do we see we see a global pandemic come and tourism will not occur what does it mean the boom that Japan is looking for for 2020 won't happen and they will continue to watch their debt GDP get worse and worse and they're gonna continue to watch their economy stagnate the same for China the same foreigners in South Korea we look at Italy 16 million people are potentially going to be under quarantine do you think that at the end of all of that that those people are going to wake up and say we love our government we trust it no they're probably going to put a populist government in and we'll probably see an Italian version of brexit come and can the Union European Union survive if Italy leaves perhaps France next maybe maybe not all of this the markets the world order you are seeing a lack of fundamental integrity people do not have faith that the institutions we have can protect us and allow us to address the problems of the 21st century we are all aware that strong AI has the potential in this century to end humanity nothing is being done about it for the last 10 years epidemiologists have been saying time and again that a global pandemic could kill 200 million people and collapse the global economy it was one of the least and last priorities of the world order and now we are facing potentially this prospect where are they we can't even agree on basic things like who to test how to test when to test or coordinating relief efforts so there's a global skepticism that the institutions we have are not going to succeed in the 21st century so what is the point of our industry are an industry the cryptocurrency industry has nothing to do with fast returns or dealing with volatility or the price of it has everything to do with a global conversation about changing the way we do things not just in institutions whether we should put power in one or the other about removing the need overall from institutions we no longer need central authority we no longer need presidents kings governors leaders CEOs to get things done this whole movement is about trust and consent and immutable rules that don't care about the daily news don't care if there's a plague don't care if there's a problem or war or an earthquake they behave the same way just like the laws of physics behave much safer for us to build things on and the whole point is these systems are Darwinian and effective only when they've been put under pressure which is exactly what's happening today you see there's going to be many winners and losers in our industry there's over 3,000 cryptocurrencies but all of us collectively in this industry know one thing that over the next five years whoever wins will be a significantly more competitive better product that does more for everyone has more utility for everyone then all the other ones who lose this is not the case with the money system of the 20th century this is not the case for the social systems of the 20th century there are so many that were created that are suboptimal predatory highly centralized highly unfair right with inequality and a lack of inclusiveness but exists because of rent either random chance or that well somebody got lucky our industry is the polar opposite everything we do every action we take every innovation we make is accessible to everyone and to compete with each other we mutually must adopt concepts like private computation useful proof of work inclusive accountability high throughput proof of stake all of these amazing innovations on the layer 2 side they're all open source the ones that matter and the ones that don't will die and within 5 years these systems will be globally available to billions of people built into silver products cellphones operating systems into the browser the fastest-growing browser right now is one that's built on the foundations of a cryptocurrency brave and we can wake up within five years and see more usage for that then Google Chrome has the fastest growing social systems we have are on the cryptocurrency side and the other thing is this is where you are in control you own your own bank should have global pandemic up end and push us into a depression do you think people are going to want to live in a financial system where their bank accounts can be shut down at any time where they're told that there are limits on how much money they can withdraw every single day where they can send money who they can send money to do you think that they're going to accept systems like that systems that exist to preserve the power of the few or do you think they want to live in a world where the value that they have can be moved anywhere anytime to anyone and they can take it with them the same for their identity and their privacy our institutions have and continue to fail us and this market correction is just another example of the markets saying that explicitly and outright in my own country the United States of America the response could have been bipartisan and simple our president and the opposition party could have set their petty rivalries aside and said it's for the good of our people we should work together instead what did they do they looked at it like a game of political football and they said hey let's go ahead and see who could score the most points a recession is bad for the incumbent president so let's just make sure that that happens regardless and meanwhile the other side is ignoring the fact that we are entering into a pandemic and millions of people could die because they don't want the markets to collapse it's disgusting and it just shows you the lack of integrity the system has as a whole and the end result will not be one side winning or the other side winning it will be that the system has to be replaced with a better system so my plea to everybody in our industry is to calm down and relax and do not succumb to fear but understand that we are standing at the arc of history at the moment and understand that we as an industry are collectively despite our differences working on the same problem the problem of how do we build a society without kings or presidents or leaders a problem of how do we build a society that gets rid of the middlemen a problem of how do we build a society that has affair for the least amongst us as it is for the most amongst us this is the reason we're all here this is the reason why we have resilience and durability the markets are panicking that they collapse 10% here 20% here we in the crypto space have seen collapses of 90% yet we still show up for work every single day we still fight hard every single day and we still remember who we are and why we signed up and today I'm just as passionate as I was when Bitcoin was worthless and tomorrow I will be in the day afterwards and we will find a way to win so as tragic as these things can be and the fact that we are entering hard times and the economy is looking perilous always remember that there's a light at the end of the tunnel and that we will reach a point where things change the nature of identity the nature of property the way you vote the way you give consent how you hold your wealth and how you transform your wealth the rewards you get from the merits you have the people you have relationships with trust the movement of medical data all of these things in the next 25 years will change to a new form that is fair for everybody this is the reason we're here this is why I'm here this is why my company exists this is why Cardno exists and frankly this is y EO six is Santa's os-- exists and Bitcoin exists and all these other things we disagree about conduct we disagree about particular ways of executing and how these protocols need to be structured but not for a moment do I doubt that my competitors and this industry as a whole is philosophically aligned about killing the middleman and building a better world for everybody so hang in there don't succumb to fear and panic and realize that the fundamentals of our industry are far more South than the fundamentals of the legacy system we intend on replacing and as bad as things can be they could be worse we could emerge from all of this no wiser no more capable and still chained to the old sins of the past thank you so much for listening and hang in there Cheers
